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Brexit vote

Blog entry for June 2016

This is not the place for political discussion, but surely everyone will have seen the announcement that the UK is to leave the European Union. The immediate effect of this, of course, is that the pound sterling has fallen by 5% or so, making everything imported into the UK more expensive. Unfortunately, this is not all: by a bizarre quirk of the modern "science" of economics, any big event like this, whether notionally "good" or "bad", and in whatever country, means that the yen also goes up. So overall, I'm afraid prices go up by 5-10% just about everywhere. (Did you know that the Japanese national debt is something like 20 years worth of tax revenue, and every year if the government makes a budget to spend 2 squillion yen, it raises 1 squillion in tax, then prints the rest. I wonder how long the current situation will last...?)

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