UK PC prices have risen 30% in a year since the EU referendum The average trade price of computers in Britain shot up by almost a third in the past year since the EU referendum, though a weakened pound might not tell the whole story. According to distributor data collated by channel analyst CONTEXT, average sales prices (ASPs) for desktops, notebooks and workstations reached £480 in July …
You clearly don't understand. Everything bad that's happened in the past year is because of Brexit. Everything good is either despite Brexit or because Brexit hasn't happened yet.
You need to spend at least 2 hours per day watching the BBC to understand this. Alternatively,30 minutes reading the FT would suffice.
Step one: Pretend you have never left your home town, that you believe the people on the other side of the river are a bunch of thieving bastards and the greasy scum on the wrong side of the channel are far worse.
Step two: Pretend Brexit is the best thing to happen since the British Empire conquered Africa/India/Canada/anywhere else we shitted on the locals in the last five centuries. If you are having difficulty with this, try harder with step one.
Step three: Read Brexit related articles on the BBC. If you are not seething with righteous anger about all the factual errors go back to step two.
By this time you should have noticed that the lying foreigners who have overrun the BBC are trying to convince everyone that Brexit will be a disaster in the hope that the UK will come back to the EU and prop it up financially (If you are having difficulty with that, remember every bit of financial information you thought you knew was based on lies told by the fat cats at the financial times).
Round about this time, you should be able to blame the BBC for the devaluation of the pound, pot holes in the roads, the noisy neighbours (bloody foreigners - EU says we can't send them back where they came from because of the yapping pet dog) and the shortage of seating in rush hour trains.
Inflation has happened before, prices went up and when the pound recovered it took ages for prices to drop back down again because most Brits are too lazy to hunt for a better deal. This time, unlike every single other time exactly the same thing has happened it is all a because of the massive international Brexploitation conspiracy. This is obvious because ... err ... because I am always right and any evidence to the contrary is fake news. It has to be. There is no other possible explanation and if you disagree with me you are a credulous half wit or a troll.
Now take a deep breathe, have a nice cup of tea and try to come back to reality.
remember the mantra: Reduce, reuse, recycle? brexit leads to loss in the value of the pound, which leads to less consumerism, which leads to reduction in consumption, which leads to reduction in greenhouse gasses which leads to reduction in global warming.
who knew noble brexiteers would turn out to be superheros saving the world?
flying capes and amazon vouchers all round folks,
Allow me to clear this up:
What is happening is due to the hype surrounding the planned British exit from the EU. Both sides are equally to blame, the Remainers for foretelling years of doom and the Brexiteers for swaggering about as if the continent doesn't matter.
This is, in reality, two groups of powerful people arguing about who gets which cut of the swag. The losers, whatever happens, will be us. Every. Single. Time. Supporting one or the other is a bit like turkeys voting for Christmas.
Despite the icon, it's not exactly rocket science.
>>"As Brexit hasn't happened yet, you must be posting from the future"
Or alternately, the market is capable of responding to things it knows are going to happen. I'd love to see how you walk down the street. "Hmmm, there's a wall in front of me. Well, I'll just keep walking and only change direction when I bang my nose."
Idiot.
The UK has it's own currency not fixed to the Euro or the Dollar. So essentially now people invest less now in the UK as they believe that their investments will be worth less after the Brexit. After all if you open a factory in the UK it's much less usefull when you cannot sell to the EU. Therefore the demand for GBP is falling, therefore the price is, too... which means you have to pay more GBP for something with a fixed dollar price.
The whole thing wouldn't be much of a problem if the UK still had a big manufacturing sector, but that was apparently killed during the Thatcher Era.
BTW it doesn't matter how the Brexit will actually turn out what matters is what investors will believe the Brexit will turn out.
(OT: My prediction is that there will be an agreement, the UK will pay back 20% of its debt and will get special treatment in exchange for it)
> (OT: My prediction is that there will be an agreement, the UK will pay back 20% of its debt and will get special treatment in exchange for it)
That sounds like something that the B.S. Johnson is hoping to happen. If only negotiators actually followed it....
Protip: it's not the 1600's any more, the UK is not an empire. UK needs EU more than EU needs UK.
"Protip: it's not the 1600's any more, the UK is not an empire. UK needs EU more than EU needs UK."
Yes, but the EU rarely decides on what's best for the people. After all, if those in power would have thought that way, there wouldn't have been special rule after special rule for the UK. It's hard to imagine that that mindset is suddenly gone.
And that agreement would for 2 things, the Commission could boast that they got 20 Billion from the UK and nobody would question how much the actual debt was, and the UK would get it's special treatment.
Incorrect - check out the trade deficit figures.
Size matters. If trade between EU and UK grinds to a halt, EU loses 4% of its exports. UK loses 13%.
After all, if those in power would have thought that way, there wouldn't have been special rule after special rule for the UK. It's hard to imagine that that mindset is suddenly gone.
Dating is a very different circumstance from breaking up.
I mentioned Brexit because it happened right bang in the middle of me renovating the house I bought. So I know how much materials were costing before hand, and I know how much they cost now. I also know how much Brexit affected my wedding, as overnight I lost 30 cents for every pound over the result.
Now, I am acutely aware that those who think Brexit is a good idea no matter the outcome don't give an ounce of their own shit about my experience and/or how the pound has competed with the Euro and the Dollar since then. But what I'd like for them to consider or take on board is that when you purchase timber from most UK chain stores, that timber is sourced from abroad.
If the pound falls in value against the value of foreign currencies, it takes more pounds to afford to buy those items from foreign countries, irregardless of trade deals.
But what do I know? I just buy MDF to make my home a little nicer so I can spend the evenings wondering how so many people can be so fucking stupid as to think Frau May is doing a wonderful job and to stick two fingers up to Johnny Foreigner. It's OK to admit you're wrong and to change your mind..
@ wolfetone
"Now, I am acutely aware that those who think Brexit is a good idea no matter the outcome don't give an ounce of their own shit about my experience and/or how the pound has competed with the Euro and the Dollar since then"
I voted brexit and still think its a good idea but yes I do care about such experience. As far as I am concerned it is the cost of getting the country back to a working order (I am sure others may disagree) is more important than the warm feeling of the EU or whatever. Unfortunately we are still bound by the EU while the cartel threatens and attempts to blackmail us. Once out we are no longer bound by their trade rules and the more certainty the currency becomes more stable.
"how so many people can be so fucking stupid as to think Frau May is doing a wonderful job"
I am not sure they all do. I dont. But she is about the only option at the moment which is painful. The libs are still running on a platform of denial and labour doesnt know if it is coming or going on the subject. Personally I would have preferred Farage's UKIP as this would be resolved by now.
" stick two fingers up to Johnny Foreigner"
Some of us voted brexit to stop sticking fingers up at foreigners.
"It's OK to admit you're wrong and to change your mind.."
I tell this to remain voters plenty. But everyone is free to their own opinion and on polarising topics like this people dont like to admit they were wrong, kinda like when the Euro blew up and we stopped being called eurosceptics because we were right.
Btw you have upvotes from me because I too buy timber and yes it is more expensive.
If the pound falls in value against the value of foreign currencies, it takes more pounds to afford to buy those items from foreign countries, irregardless of trade deals.
A slightly selfish viewpoint as conversely, the things they buy from us get cheaper. As an exporter, a rising gate price can be passed on under such circumstances. Your problem here is that you're not exporting your house!
> A slightly selfish viewpoint as conversely, the things they buy from us get cheaper. As an exporter, a rising gate price can be passed on under such circumstances. Your problem here is that you're not exporting your house!
Actually, the problem is we're not actually exporting any more, and while those exports have certainly led to higher profits for many firms, for most those profits have been offset by the increased cost of imports which affects the components which go into many of those exports. There will always be a balancing act between those, but as we are heavily dependent on services as opposed to goods, we are dependent on retaining the ability to provide those services. That's where we should really be worried.
"I voted brexit and still think its a good idea but yes I do care about such experience. As far as I am concerned it is the cost of getting the country back to a working order (I am sure others may disagree) is more important than the warm feeling of the EU or whatever. Unfortunately we are still bound by the EU while the cartel threatens and attempts to blackmail us. Once out we are no longer bound by their trade rules and the more certainty the currency becomes more stable."
Working order? How is the country broken? The policies enacted that have caused the explosion in foodbanks, the over worked underpaid nurses and the continued chronic underfunding of schools and prisons are down to the MP's in this country who are far more interested in helping their friends make a few quid. Absolutely nothing to do with the EU.
The "EU cartel [...] attempts to blackmail us" how? On what planet do you think you can walk away from an argeement or an association you have paid money in to and get money back from would simply let you walk away without paying your dues? You wouldn't do that in a divorce, you wouldn't do that in a resturant.
" Once out we are no longer bound by their trade rules and the more certainty the currency becomes more stable." tell me again, well for the first time because no one who voted for Brexit or continues to support it can actually explain this point, how the EU have hindered our economy? To paraphrase Italian MP told Boris Johnson (the fuckwit), if the UK leave the EU then he loses sales of prosecco to one country. The UK loses sales of fish and chips to 26 countries.
@ wolfetone
"Working order? How is the country broken?"
Economically not in a good place to deal with the next recession. Something which is resolving itself as the brexit result reduced the currency (as was required regardless) and is causing inflation which the gov and BoE have been aiming for for nearly 10 yr. A trade policy which requires we exclude parts of the world in order to be part of the cartel (for protectionist reasons of other members of the EU). Incompatible methods of applying law where we tend to say what you cannot do vs europe which tells people what they can do. Severe deficit in democracy as a vote on the EU has been long promised and even in eventual delivery (of a highly rigged vote) is being attacked by the undemocratic.
"The policies enacted that have caused the explosion in foodbanks"
Pre brexit vote. And we are still trapped in the cartel which dictates we block out parts of the world that would compete with the cartel members. Aka food becoming cheaper when we actually leave.
"The "EU cartel [...] attempts to blackmail us" how?"
Since the result by threatening us then begging us to stay. By direct attacks on the country such as attempting to demand Euro clearing is done in the EU (which would remove it from being an international reserve currency the idiots). By refusing to negotiate until we agree to a fantastical bill which even their negotiators dont believe can happen. By refusing to negotiate until we solve their problem (Irish border) to their satisfaction. Off the top of my head.
"paying your dues"
About £36bn I think it was found.
"how the EU have hindered our economy"
Bad trade policies. Abusing agreements (contribution used to bail out Greece). EU regulation imposed on our country. And of course our govs poor implementation of EU policies.
"Boris Johnson (the fuckwit)"
No argument there.
"if the UK leave the EU then he loses sales of prosecco to one country. The UK loses sales of fish and chips to 26 countries."
So the EU wont allow trade with us at all for any of their countries/businesses because they stomp their feet and wave a rattle around. Doubt it. It is in both our interests to agree to be amicable. If they cant manage that then we shouldnt pander to children.
"Economically not in a good place to deal with the next recession. "
Because of bailouts to bankers who caused the last recession, all coming from policies (or removal of them) from Tony Blair/Gordon Brown which was started as way back when Thatcher was in power. Nothing to do with the EU.
"Pre brexit vote. And we are still trapped in the cartel which dictates we block out parts of the world that would compete with the cartel members. Aka food becoming cheaper when we actually leave."
I didn't say foodbanks were caused by Brexit, I am pointing out a very real problem caused by our MP's being dickheads and cutting back everything. The whole idea that food becoming cheaper when we leave the EU is a falicy. Seasonal vegtables like strawberries are imported from places like Spain, which is in the EU.
"Bad trade policies. Abusing agreements (contribution used to bail out Greece). EU regulation imposed on our country. And of course our govs poor implementation of EU policies."
But what EU regulations have harmed this country? Be more specific like I asked.
"So the EU wont allow trade with us at all for any of their countries/businesses because they stomp their feet and wave a rattle around. Doubt it. It is in both our interests to agree to be amicable. If they cant manage that then we shouldnt pander to children."
I'm fairly sure and confident that the only EU country where it's in their best interests to get a good deal is Ireland, as most of the road haulage to the EU goes via the UK. I don't France are too bothered, and the rest of the EU will get along just fine without the UK crying and throwing their dummy out of the pram over nonsensical argument.
Don't forget that the UK also votes to put people in the European Parliament. Who do the UK send? UKIP, who don't want to be in the EU. So it was lovely to see Nigel Farage bitch and whine about fishing quotas harming UK fisheries, when his role within Brussels was to sit on said fishing quota forums - which he never attended.
@ wolfetone
"when Thatcher was in power"
Wow thats a while back. She must be some kind of god to be so powerful. But anyway the US recovering, the UK recovering, the EU being bailed out by the IMF. And our contribution being abused to prop up their currency.
"I didn't say foodbanks were caused by Brexit,"
ok.
"The whole idea that food becoming cheaper when we leave the EU is a falicy."
Nope.
"Seasonal vegtables like strawberries are imported from places like Spain, which is in the EU."
The EU which uses trade tariffs to block out various countries (notably the poor needing trade) because they are cheaper. You might possibly be right about strawberry's as a single example. Substitution is a real thing and since parts of the world have been blocked out it is bound to have already happened.
"But what EU regulations have harmed this country? Be more specific like I asked."
The fact that we have to block out parts of the world because of the cartels tariffs (that is specific enough I would think?). The various climate change regulations. Various regulations from bendy bananas, jams, max power limits on electricals, etc.
"the rest of the EU will get along just fine without the UK"
Awesome. Tell them that. It was their presidents who claimed it would be the end of western civilisation and the break up of the EU.
"Who do the UK send? UKIP, who don't want to be in the EU."
Well that kinda demonstrates the rejection of the EU by us then doesnt it. I think Farage did a good job. He actually succeeded in getting us the vote.
"And of course our govs poor implementation of EU policies."
So the EU policies weren't really at fault, since the expectation is that the national governments implement and enforce them as applicable.
That the UK government has repeatedly done very unpopular things by implementing EU policy in a way that no other EU country has, then acted all surprised that it was a fuck up.
Even better, the UK government hasn't implemented certain policies, despite them apparently being a "big issue".
You can see this in a number of the policy documents relating to brexit, where the UK has said "we want to do X" and the EU has responded "You can already, it's consistent with EU law". I still expect these things will be sold as victorious compromises that BoJo and DDavies wrested from the EU.
In general, if a certain group (Westminster) has manage to fuck up national policy and implementation of EU policy, I'm not sure I'd be voting for them to try and take on more power. I also expect many of those championing the Henry 8th powers will change their tune if their opponents get elected.
I'm not a fan of the EU, but they seem to manage things better than many national governments. Certainly more transparently. That's pretty faint praise, since Belgium did quite a lot better through the financial crisis by not having a government at all.
Oh, and as an EU citizen living in any other country than the UK, I have *more* rights than a native of the country.
@ MonkeyCee
"So the EU policies weren't really at fault"
Hang on. So you skip over an entire bunch of EU faults against our country to the very last bit where I also accept that our gov also implements EU rules badly? That is a severe case of selective reading.
"That the UK government has repeatedly done very unpopular things by implementing EU policy in a way that no other EU country has"
Do note this is by the pro-EU govs. The govs who sold us out to the EU and refused a referendum plus govs who campaigned to remain. The gov who was shocked we would dare vote leave even after they threatened us directly! Another good reason to vote out.
"I still expect these things will be sold as victorious compromises that BoJo and DDavies wrested from the EU."
Probably. I am not going to defend them.
"I'm not sure I'd be voting for them to try and take on more power"
Why would we accept them carrying on as is when it is even by your comment not good? And since there were no alternatives as the many 3 parties we all so bad UKIP became a legitimate threat which caused an actual vote finally offering actual change.
"I also expect many of those championing the Henry 8th powers will change their tune if their opponents get elected."
Almost certainly. We have authoritarian liberal anti-democrats not known for their sanity. The authoritarian labour gov with wet dreams of Venezuela. And an authoritarian tory gov we already can see plain. It is a good job a libertarian party (Farages UKIP) shook things up a bit and with home politics becoming important again people will hopefully care more. Instead of waiting for the federalising of the EU to conquer the country.
"I'm not a fan of the EU"
Then you voted leave? After your praise of the EU and dissing of national governments what you ment to say was you voted out of the EU? Do you think we would be better off without the EU and instead maybe stick to the economic area? Maybe you dislike the stupidly over specific regulations even over items such as jam and bananas? Maybe you disagree with how they handled the financial crisis plunging the Eurozone in to a desperate fight against deflation? Maybe you dislike their treatment of Greece to sacrifice a country to save a currency? Maybe you disagree with the EU's self inflicted financial mess leading them to be bailed out by the IMF? Maybe you dislike how Germany can unanimously inflict a migration and security crisis over the EU area? Maybe you disagree with their cartel actions locking out the poor countries from trade? Maybe you disagree with the childish demands in the Brexit negotiations for fantastical sums of money they have no right to or demand we fix their problem with Ireland?
Maybe other reasons? Maybe a combination of reasons? Or is that not what you ment?
Like for example financial services.
And that's where a single market really pays dividends to the UK. Both Frankfurt and Paris would like a bigger piece of that action and will have if the UK is has even minimal barriers put in to slow down its trade.
The question is what the UK will have to trade (because this is a negotiation after all) to keep the pounds/yen/dollars/euros flowing without any additional "friction" in and out of Blighty.
Check out the population of the UK compared to the EU THEN check the deficit figures and see who needs who more based on the percentages. Anyway its the UK buying public who can change the UK trading deficit by spending their money on UK produced goods only (have fun with that).
"when you cannot sell to the EU". Much rubbish has been written, the Brexiteers well in the lead, but please, there will be trade between the UK and the EU in the future too, but the deal will be different. How different no body knows yet.
As for the debt, gentlemen pay 100% of their debt, remember the "British Gentleman" (coined in Britain though).
"and will get special treatment in exchange for it". Special treatment for not paying 80% of its debt, that would, in my opinion, be special indeed.
@Christian Berger "special rule after special rule for the UK". Those special rules were to the advantage of Britain like not being the second biggest contributor to the EU budget regardless of then being the second largest economy in the EU.
Some Brits seem to think they are very special indeed.
After all if you open a factory in the UK it's much less usefull when you cannot sell to the EU
If you open a factory in the UK, the entire EU will barely take a tenth of your exported output (and falling). Having an overvalued pound won't help with most of what you do.
As for manufacturing having been 'killed' by some mysterious outside entity, if only Germany had taken more Austin Allegros! They've missed their chance now...
An overvalued currency shafts your balance of trade, and in an effort to compensate sees your assets flogged off abroad and it badly handicaps exporters. OK, cheap imports can disguise your underlying inflation rate but like QE, that's not healthy long-term.
The EU is all about kicking financial cans down the road and the wheels have already come off across southern Europe. Now is a great time to get clear and look to the rest of the world.
>Now is a great time to get clear and look to the rest of the world.
Which bits of the rest of the world? Those who invested here and now wish they hadn't, those who couldn't give a shit about us, or those whom we've fucked over in the past and are now enjoying seeing us squirm?
You're right about the balance of trade, but we have to negotiate trade with all of those people. Those people already have deals with one another, yet we have to start from scratch. Put yourself in their position; if you have someone screaming how important they are and you're not, yet you know they don't have a leg to stand on, how much would you tolerate their arrogance?
It's this attitude that really riles me amongst the nationalists. This attitude that somehow the others will do what they're told because we're better than them. And it goes all the way to the top, as exemplified by Mrs. May's recent trip to Japan. She brought along a bunch of company bigwigs yet was essentially told "We wrote a long document setting out what you need to do, we're going to prioritise the EU and a nutcase has just lobbed a missile over us so we have more important things to deal with. Fuck off."
"It doesn't matter how the Brexit will actually turn out what matters is what investors will believe the Brexit will turn out."
Actually it's even simpler than that:
"Any currency is only worth what market confidence says it is worth"
Hence why bitcoin swings wildly whilst larger fiat currencies are less inclined to be volatile.
@ragnar
You are completely correct, not only does the UK have a manufacturing sector, it's a very good one in terms of contribution to GDP and value addition. It's also pretty high tech, and contributes about as much as the finance sector. The main difference between it and say the Netherlands (or Germany) is those countries also have a large machine tool* manufacturing sector in addition to their normal sector.
The claim "we don't make anything anymore!" is because almost all of this manufacture is for parts within a supply chain. Making a few relatively simple parts very well** is a better modern business manufacturing model than building a complex whole for a small company.
Perhaps the real issue here is the lack of jobs in the sector, but that is a result of mechanization, and the jobs that remain are still well paid.
* both building new, moving and modifying existing factories in everything from auto parts to chip fabbing.
** reliably profitable and more focused engineering often results in higher quality
Jeezo, does everyone on here read the guardian?
"The whole thing wouldn't be much of a problem if the UK still had a big manufacturing sector, but that was apparently killed during the Thatcher Era."
http://www.cityam.com/272260/british-manufacturing-now-eighth-largest-world
"(OT: My prediction is that there will be an agreement, the UK will pay back 20% of its debt and will get special treatment in exchange for it)"
We have any debt wrt the EU, it's the opposite if anything.
This post has been deleted by its author
Nothing stupid about the price rise, perfectly well predicted in fact, and has been obvious for months that it would happen.
Markets decided that Brexit was worth a 15-20% cut in Sterling. THAT was the damage the remainers warned about (even if most of them are clueless and don't realise it.) That means we'll have some nice growth in UK made exports as they're cheaper for Johnny Foreigner to buy (though why we really care is open to debate, though of course it allows us to purchase imports with all that foreign currency)
And imports prices rise by 20% as our Great British Pounds have less purchasing power than they used to. Overall, Brexit hurts average UK society member as we can't afford as much stuff made by Johnny Foreigner anymore (and boy, do we get a lot of stuff from Johnny Foreigner), but he is slightly more likely to keep his job as on a worldly scale, as cost of labour has dropped by 20%
It also means that all the hand wringing about what will happen after actual Brexit will all turn out to be a bit of an anticlimax as it's already been decided and priced in. The fundamental change happened about 2 hours into counting the votes when it was realised the media and their predictions were all wrong. Everything since has just been inertia of the flow of global goods.
"what will happen after actual Brexit will all turn out to be a bit of an anticlimax as it's already been decided and priced in."
Except nothing has been decided, because those responsible for this almighty mess can't make their minds up on what they're doing, don't know what's going to happen, and have no idea how it might all turn out.
The idea that everything is settled already in advance by the market is extremely naive. The market can't predict the future anymore than anyone else and frequently gets it wrong. Particularly when those who are supposed to be in charge are running about like headless chickens and can't tell the market where they intend taking us. Other than to hell in a handcart.
"already been decided and priced in"
At the moment the market is pricing in uncertainty. They aren't yet pricing in the results of Brexit. That's why the currency market has moved by the stock market is relatively stable. When we start to see concrete proposals, and the winners and losers become more obvious, then the real shifts will happen.
I seem to remember being told that someones 2 year old child could explain economics to me on another story.
I said that the weak pound was more due to low interest rates than brexit and only the other day the pound gained back some lost ground when the bank of England talked of interest rates being raised.
It strange isn't it that people don't want to invest in a currency that has low returns but when there is talk of higher returns the pound is strengthened.
Companies have and always will take advantage of fluctuations in currency, petrol is the obvious example and if the pound gets back to where it was these prices won't come down like when we had potato shortages and my chippy put the price of chips up they have never returned to the original levels.
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