For all those who don't know the repercussions of BREXIT and what it is

[✨ Ass Fat ✨]

BREXIT: what the heck does it all mean?

A lot of people have no clue why Europe is currently in a state of uproar and the only word people seem to be saying is â€œBrexit†so here’s a not-so-quick and easy-breezy explanation on the past 24 hours of CHAOS that has ensued:

The European Union (EU): an organisation of European countries that follows similar laws, allows for freedom of movement/labour, easy travelling (@people who planned on doing Eurotrips, not sure if you can count the UK in that anymore!) and trade with each other. The EU is important because before it was formed, the European continent was ravaged by 2 world wars, and a division because of the Cold War. This organisation has provided all the stability we’ve seen in the past 40-odd years.

So what the heck is a â€œBrexitâ€? Basically, the UK has just voted to leave the EU. 52/48 majority. Now this doesn’t seem like a TERRIBLE thing, but there are some serious political and economic consequences.

 

Economic implications:

- The British pound crashed from 1.5 to 1.3 in 6 hours, the lowest value in 30 years, which in turn affected the US dollar which affects all other global currencies. I wish I was joking but I’m not: South Africa, Poland, Norway, Mexico. Hungary, Australia, Switzerland all saw their currencies plummet. Countries that don’t rely on exports as their means of production cannot have a devalued currency. IT’s not good. The Japanese Yen which has been strengthening reached an all-time high which is terrible because Japan is trying to reverse its deflationary state. The Bank of Japan is now out of options and Japan literally STOPPED TRADING IN BRITISH STOCKS/INVESTMENTS.

 

- A devalued GBP means that the Bank of England is going to have to hike interest rates to prevent inflation (domestic prices going up even further) whicH WILL CAUSE A RECESSION. SOUND FAMILIAR ANYONE? YEAH. FINANCIAL CRISES.

 

- The UK leaving the EU means its market has gone down a LOT in size making them a less attractive destination for trade partners/investors. They’re going to have to draw up new trade agreements with basically the whole world since all their trade was previously tied to the EU. This will be tricky because countries liked having a market with a population of ~500 million compared to the UK’s size of ~50 million.

 

- GDP will go down. Retirement income will go down. The British economy is in a state of panic. The global economy is basically, fucked. For now at least.

The thing is, given the precarious nature of the economy right now with markets out of control and stagnant growth practically everywhere, it was a really really bad time to have this referendum - a lot of countries have been banking on a “Bremain†before making their next move when it comes to monetary/fiscal policy. The IMF has predicted that 2016/2017 will see the worst years for growth, but we might see upward growth trends from 2018 onwards.

So how does it still get worse?

 

- Scotland showed an overwhelming majority of votes to remain in the EU. It’s likely that they’re going to call for a referendum (again) to leave the UK.

 

- Northern Ireland also wanted to stay in the EU.

 

- Wales voted Leave but with a slim majority. 

 

- David Cameron has just announced that he will be resigning in 3 months which means that extreme conservatives who managed to sway the vote in favour of Leave could come to power. That’s right. We’ll be stuck to suffer with the likes of Farage and Johnson. 

 

- Brexit triggered a lot of nationalist/extreme right-wing movements in the rest of Europe. Some leaders already calling for â€œFrexit†(France), â€œItexit†(Italy) and..â€Nexit†(Netherlands)? We may see more in the next few days.. A disintegration of Europe is risky business because Europe has not been able to remain stable until the EU was formed. This could give way for an assertive Russia too, who is, as most countries would be, looking to gain more power over weak/vulnerable European states. This will trigger US skepticism and we all know how that goes

. 

SO HOW DID THE GOVERNMENT LET THIS HAPPEN?

Basically David Cameron came up with the idea for the referendum because he was desperate to gain support from anti-EU parties like UKIP during the general elections last year. Except now he’s resigning. So. 

During the campaign, Michael Gove, Boris Johnson (conservatives) and Nigel Farage (UKIP) stressed on immigration laws if the UK leaves the EU because immigration/refugees have been a big problem for the UK as its reducing jobs being given to UK locals/residents and they think the UK is becoming â€œovercrowded†so the Leave campaign was like WE WILL TIGHTEN OUR BORDERS! YEAH! Except now they’ve displaced millions of UK citizens living/working in the rest of the EU. Let’s see how they figure that one out.

Additionally, they talked about the economic benefits because if the UK were to leave, they would be able to allot the money that goes to the EU to other things like the NHS (national healthcare) etc. The Leave campaign went on about how the UK spends 350 million pounds a week on the EU but actually it spends less than half of that, so really, their campaign was built on scaremongering and lies. EDIT: Farage has announced the 350mil will NOT be spent on the NHS.

EDIT: People have mentioned the fact that unstable EU economies were relying on capital inflow the â€œBig 3″ (UK, France, Germany). This is true and this was being used as an argument - however, leaving is a Pyrrhic Victory! the UK will most likely have to spend MORE rebuilding its independent economy. However, once markets stabilise, we will see.

Article 50, aka the means of exiting will be triggered in 3 months when the new Prime Minister is announced (most likely one of the extreme conservatives who are riding high on their â€œIndependence Day†fuckery which is even more proof of xenophobic, colonialist bullshit) after which the UK will have 2 years to complete its official withdrawal so hopefully that will provide short-term stability.

 

 

But the world is in a dark place right now and everything is terrible. 

I KNOW ITS LONG BUT PLEASE READ THIS IS IMPORTANT THIS IS GOING TO GO IN HISTORY TEXTBOOKS

 

source:http://trait.tumblr.com/post/146396880634/brexit-what-the-heck-does-it-all-mean

[(=｀ω´=)]

I hope Cameron and the old people who voted to leave step on a lego. 

[Tzuyued]

so if ireland and scotland leaves uk, economy of uk will be doomed right?

[singaporefan]

main question how long will it take to recover from this ?

[Mr. Phoenix]

Whiny Leftist screed. Britain will be just fine. In five years, it will again be the dominant economy in Europe - as its freedom to act without EU restrictions will give it a huge edge over its continental rivals. I suspect a new and real free trade agreement with the USA is also coming up soon, and this will give Britain another big advantage.

[aeromancy]

Thank you for posting this

[â­� slayyyter â­�]

istg if trump now also wins the presidential elections im gonna mark 2016 as the worst year ever bye

[Silktiger]

And there could be a chance for Scottish independence referendum again right? What would be the implications of that?

[NELLO-HOPE]

main question how long will it take to recover from this ?

 

It may take years to recover from this

istg if trump now also wins the presidential elections im gonna mark 2016 as the worst year ever bye

Same here

[Sweet Perfume]

I hope Cameron and the old people who voted to leave step on a lego. 

 

I hope the old people who voted live long enough to see the damages.

 

My boyfriend voted to leave and he asks me every day when I will go to visit him again. Well, it seems I won't since it is more difficult, oops! 

 

Whiny Leftist screed. Britain will be just fine. In five years, it will again be the dominant economy in Europe - as its freedom to act without EU restrictions will give it a huge edge over its continental rivals. I suspect a new and real free trade agreement with the USA is also coming up soon, and this will give Britain another big advantage.

*coughs* Germany *coughs*

 

It's time to realise the UK time has passed. The only thing that maintains your status is your language.

[Choiza's D]

source: tumblr

 

 

"this is going to go in history textbooks"

 

 

The economy is suffering (in the short term) due to the uncertainty created by this change, investors do not like this. The UK is coming back into the light.

[SNGGYU]

"this is going to go in history textbooks"

 

 

um, it will 

[(=｀ω´=)]

source: tumblr

 

 

"this is going to go in history textbooks"

 

 

The economy is suffering (in the short term) due to the uncertainty created by this change, investors do not like this. The UK is coming back into the light.

 

Tumblr's not always unreliable. If you're really that suspicious, check major news outlets; they're saying the same things.

 

This is definitely going in history textbooks. It just depends on how severe the repercussions end up being; they make the difference between a sentence and a chapter.  

[Choiza's D]

um, it will 

what will?

'how racists caused the world to implode' ?

[SNGGYU]

what will?

'how racists caused the world to implode' ?

UK, the allmighty UK, is the first one to withdraw and that alone is enough to go down in history 

[Choiza's D]

Tumblr's not always unreliable. If you're really that suspicious, check major news outlets; they're saying the same things.

 

This is definitely going in history textbooks. It just depends on how severe the repercussions end up being; they make the difference between a sentence and a chapter.  

Maybe you should check some non left-wing sources.

 

Yes, because it is a major event it will go in book.. what I thought the author meant was that his/her predictions are so accurate and enlightened that they will soon be taught in schools

[jarek1101]

too many words // 

[ezgiT]

Thankyou for the summary! And to those who are saying it is inaccurate, im british and it isnt!

 

Leavers were crying about immigration but they now just said that theyre hardly gonna do anything about it, so what flops are some people.

 

Also did you hear about London wanting to remain in the EU? Theyre collecting signatures, so far theres 170k

[PoshLuxe]

Thank you for the explanation.

[heejin]

Thank you for this.

 

Seriously, 2016 is the year of xenophobia. With Brexit, and Trump's rising in the USA, younger generations to come will have to suffer the consequences.
Our generation has so much more to be angry about, especially with such irresponsible politics that will lead us to long term recessions. I don't understand how our anger still manages to not be as destructive as the older generations. Is it because they grew up in the years of prosperity (at least for those in the USA), that they feel entitled to do whatever they want? Or are they just that gullible?

[Solfa]

This quote of Winston Churchill is more relevant than ever "The best argument against democracy is a five-minute conversation with the average voter."

[Yerowan]

Thankyou for the summary! And to those who are saying it is inaccurate, im british and it isnt!

 

Leavers were crying about immigration but they now just said that theyre hardly gonna do anything about it, so what flops are some people.

 

Also did you hear about London wanting to remain in the EU? Theyre collecting signatures, so far theres 170k

 

O.o

Would that even be possible, or is that more of a... I don't want to call it a publicity stunt, but is that what it amounts to?

[ezgiT]

O.o

Would that even be possible, or is that more of a... I don't want to call it a publicity stunt, but is that what it amounts to?

What part? The london part? Doubt it will happen but it will set more of a divide! Whole of london voted to remain and it is the capital

[tinandtonics]

Thank you! I am sick and tired of people saying 'oh but why is this a big deal what's gonna happen.'

 

Like it or not it does affect the whole world. And sadly in this country it will be us, the younger generation, who suffers the most

[tinandtonics]

O.o

Would that even be possible, or is that more of a... I don't want to call it a publicity stunt, but is that what it amounts to?

 

No. It's unlikely but it's not impossible and it's most definitely not anything like a publicity stunt.

 

I understand why London wants to be independent because most of London voted remain and compared to the rest of the UK, London is actually quite different.

 

And yes, it does amount to that because it's just so shocking. London will have be damaged a lot because a lot of big companies choose to have their EU headquarters in London and it's one of the biggest money-makers in the UK. Now that Britain's out of the EU, well those companies are likely to withdraw.