Effects of Brexit

During the Brexit campaign the 'remainers' failed to put forward any convincing arguments for the UK remaining in the EU. Instead they operated 'project fear' which attempted to convince everyone of the economic dangers if people voted for Brexit. Their predicted economic catastrophe never materialised but there is a slow weakening or corrosion of the UK currency. Sterling was in decline against the dollar for a couple of years before Brexit but the 'leave' vote has accelerated that decline.

At the same time the Euro has been gaining ground on the pound.

The Euro zone still has huge economic problems and the gains made by the Euro could still be reversed. But it is clear that Sterling has been weakened by Brexit. While this may be good for exporters it is not good for importers and that includes the price of oil and food much of which the UK has to buy in dollars and Euros. So inflation will probably rise in 2017 with food and petrol prices rising. This will impact the working class 'leavers' the most. But this is still only the beginning of the exit process, over the next two years we could see a breakdown in the Northern Ireland peace process and a second divisive independence referendum in Scotland, both direct consequences of Brexit. The UK may also find itself in a position of having to take whatever trade deals it can get even if those are not in the UK's long term interest.