The consequence thread (Brexit)

[I1L2T3]

The majority of bacon and pork consumed in this country is not British so it will have hardly any effect on the average consumer, some brexit good news for British exporters though.

 

I think you misunderstood the article completely.

 

Chinese pork shortages have meant they need to fulfil demand in China. Because Sterling has tanked that means the Chinese are buying from here which means the demand and therefore the price has increased.

 

Even if, as you say, British consumers generally buy imported bacon anyway then imports are going to be more expensive because Sterling has tanked.

 

Either way the bacon in our butties is going to be more expensive

[tzijlstra]

indeed

 

it may be that this represents the new future value of sterling, it will bounce up and down but on average it will be roughly where it is now.

 

as with any currency movement there are winners (exporters) and losers (importers)

 

oil is priced in dollars and the price of oil feeds into pretty much everything so a falling pound isn't a good thing, the only saving grace is that the price of oil has collapsed faster and further than sterling.

 

a more subtle thing is that the uk was (we might not be after the negotiations finish) part of a global supply network, we import components, put them together to form larger sub-assemblies and then export them to be put together into bigger things by someone else. if you're doing this on a small margin, you may or may not be stuffed and that's not taking into account the results of negotiations on the single market, customs union and to a degree the common air space.

 

GBP on actual complete Brexit (ie. loss of single market) is forecast to drop to a value around 1.15/1.20 USD. Things have evened out now because traders are entirely uncertain about which way things are going and seemingly have taken an intermittent position on the value.

[Justin Smith]

Here's some food for thought for you....Just looking at England, which is obviously by far the largest constituent part of the UK, the difference between Leave and remain was a whopping 7%.

 

But we`re the United Kingdom, or Great Britain, so what point are you making ?

 

---------- Post added 26-08-2016 at 10:10 ----------

 

How does that attitude square with "let`s all unite" ?

Answer it doesn`t.

Basically, most of these Brexiteers who say "we should all unite" actually mean exactly what unbeliever has just said, all those who may be upset we may be leaving the EU should just accept it, we`ve nothing to give you. But "unite" implies doing something to mollify the other side.

On an earlier point, unbeliever said he "didn`t want to be an EU citizen", I assume he meant he didn`t want to take advantage of the right to travel and live I any other country. But he doesn`t have to use those benefits if he doesn`t want to....... So what exactly did he mean by he doesn`t want to be an EU citizen ?

 

I`d be interested for an answer to this question from a Brxiteer. I`ve asked it more than once but never has it been answered, file it under "too difficult" and ignore it.

[apelike]

I think you misunderstood the article completely.

 

I don't think so, hence my reply.

 

Chinese pork shortages have meant they need to fulfil demand in China. Because Sterling has tanked that means the Chinese are buying from here which means the demand and therefore the price has increased.

 

Which, as I said is good news for the British bacon exporters and will hardley affect those buying non-British bacon.

 

Even if, as you say, British consumers generally buy imported bacon anyway then imports are going to be more expensive because Sterling has tanked.

 

But this was about the cost of British bacon and the article had no mention or evidence to suggest that imported bacon prices were also rising, and neither do you.

 

Either way the bacon in our butties is going to be more expensive

 

As above..

[I1L2T3]

I don't think so, hence my reply.

 

Which, as I said is good news for the British bacon exporters and will hardley affect those buying non-British bacon.

 

But this was about the cost of British bacon and the article had no mention or evidence to suggest that imported bacon prices were also rising, and neither do you.

 

As above..

 

Actually it will affect those buying non-British bacon.

 

1. Because the pound has fallen dramatically against the EURO meaning that imported bacon is more expensive meaning that.....

 

2. British consumers cannot substitute imported bacon for domestic bacon because Chinese demand for our domestic bacon is driving up the price.

 

All this means you have a shaky grasp on the economics of Brexit. God I hope the Brexit negotiators are better at it than you but I'm not feeling too confident.

[apelike]

Actually it will affect those buying non-British bacon.

 

1. Because the pound has fallen dramatically against the EURO meaning that imported bacon is more expensive meaning that.....

 

2. British consumers cannot substitute imported bacon for domestic bacon because Chinese demand for our domestic bacon is driving up the price.

 

All this means you have a shaky grasp on the economics of Brexit. God I hope the Brexit negotiators are better at it than you but I'm not feeling too confident.

 

But the truth of the matter is the prices have not risen as expected have they?

 

According to the economic brexit predictions, petrol prices should have risen dramatically, inflation should now be at around 3% and food prices should have risen. So far all of the above has failed to materialise which goes to show the economists cant always be right.

[I1L2T3]

But the truth of the matter is the prices have not risen as expected have they?

 

According to the economic brexit predictions, petrol prices should have risen dramatically, inflation should now be at around 3% and food prices should have risen. So far all of the above has failed to materialise which goes to show the economists cant always be right.

 

On the contrary food prices are rising:

http://www.independent.co.uk/news/uk/home-news/brexit-pasta-groceries-more-expensive-sterling-fall-imports-a7176156.html

 

It's only just getting started. Bacon has been impacted already as you already know:

 

http://www.telegraph.co.uk/news/2016/08/26/brexit-pushes-up-price-of-bacon/

 

Imports of bacon are hit by the double whammy of prices also rising in the Eurozone along with the weakened pound pushing up prices of imports.

 

http://pork.ahdb.org.uk/prices-stats/published-reports/uk-pig-meat-market-update/

[truman]

But the truth of the matter is the prices have not risen as expected have they?

 

According to the economic brexit predictions, petrol prices should have risen dramatically, inflation should now be at around 3% and food prices should have risen. So far all of the above has failed to materialise which goes to show the economists cant always be right.

 

Only reason petrol hasn't gone up is because the oil price has tanked more than the pound..

[I1L2T3]

Only reason petrol hasn't gone up is because the oil price has tanked more than the pound..

 

It's too early anyway. The economic effects will take a while to kick in.

[retep]

On the contrary food prices are rising:

http://www.independent.co.uk/news/uk/home-news/brexit-pasta-groceries-more-expensive-sterling-fall-imports-a7176156.html

 

It's only just getting started. Bacon has been impacted already as you already know:

 

http://www.telegraph.co.uk/news/2016/08/26/brexit-pushes-up-price-of-bacon/

 

Imports of bacon are hit by the double whammy of prices also rising in the Eurozone along with the weakened pound pushing up prices of imports.

 

http://pork.ahdb.org.uk/prices-stats/published-reports/uk-pig-meat-market-update/

 

Pork prices have gone up that much supermarkets are almost giving it away.

https://groceries.asda.com/shelf/pork/pork-joints/910000976683/1/so-false