Friday, 27 May 2016

Brexit : What The Irish Media Don't Tell You

The Irish media have been forecasting imminent doom for Irish businesses in the event that the UK pull out of the European Union :
  • “You can track the Irish export-led recovery, moving in perfect lockstep with the fall in the euro/sterling exchange rate. What’s the first knee-jerk reaction on the UK leaving the EU? The pound weakens.
  • This would drive sterling’s value down against the euro, weakening the return to Irish exporters from their sales in the British market. There would be major implications for Irish food and drink companies.
While it's true there will be some short term weakness in the sterling,  had the UK joined the Euro project in the first place, Irish exports would never have been able to do as well as they did in the last few years as the current strong sterling would not exist. 

With the Irish media / establishment now getting hysterical about Brexit and a weaker sterling, what they don't tell you is that the sterling fell in value back in 2003 when Britain were poised to join the Euro : 

Thankfully, and to Gordon Brown's eternal credit, Britain never joined the Euro. But Ireland's political establishment were clamoring for them to join at the time. Fianna Fail, the party who the majority of Irish people voted for twice in the past decade, and who then proceeded to drive the economy over a cliff, were also pushing a policy back in 2003 that would have damaged Irish exports in the recent recovery by encouraging Britain to join the Euro : 

While some of the personnel have since changed, it's still the same clueless people in charge pushing crazy policies.

No comments:

Post a Comment