Saturday, 15 October 2016

How to put pounds in your pocket

Remoaners are determined to show that the fall in the pound since Brexit is a disaster in itself and a foretaste of worse to come.Total rubbish. The devaluation is the bonus of Brexit. It is essential if Britain is to compete and it couldn't ha e been achieved in any other way.

Look at the history of previous devaluations: Labour's in 1949 and 1967 the Tories in 1972 and 1992. All of them boosted the economy. All of them strengthened exports. None of them led to galloping inflation. 

The sad fact is that there is no other way to begin to cure our galloping balance of payments deficit which now runs at 7% of GDP and is unsustainable. Devaluation uses the price mechanism to make imports dearer and to reduce the price of our exports which have been out pocketpricing themselves out of world markets. It makes foreign holidays and villa purchases dearer. It brings more tourists to Britain.

It cuts the costs of production in Britain and makes it less necessary to transfer it overseas as all too many firms have been doing because British costs are too high. There is no other way of boosting production in this country and rebalancing our economy from finance, which always wants a high and stable exchange rate, to Industry which needs a more competitive exchange rate.

It also makes it easier to counter any attempts by the E U to erecting barriers against us. If we leave the single market the common external tariff we would face is around 3% for most exports, 7-9% for cars, with the fall in the pound we've already had we can easily overlap both and by keeping the pound competitive instead of letting it go back up as previous governments have we can win a bigger share 0f their markets and improve our position elsewhere.

Critics should stop moaning and accept Lady Curzon's advice to wives afraid of sex "lie back and think of England" 

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