Britain’s Economy Set To Soar….Because Of Brexit; The EU Is Quietly Seizing Control Of Its Members’ Finances
Liam Halligan posted a February 28, 2019 article on the news site of London’s The Telegraph, writing something that I have been writing for many months — that the European Union (EU) is an albatross on the neck of economic prosperity across Europe; and, Britain will be better off with Brexit than the liberal Casandra’s are forecasting. Mr. Halligan writes that London’s “public finances are on the mend, [with Britain] recording a healthy surplus in January, on booming tax receipts. Employment is at record levels, with real wage growth at a two-year high. Despite a global slowdown, Britain[‘s economy] expanded 1.4 percent last year, recording just 4 percent unemployment.” Meanwhile, “Germany and France are on the brink of recession, Italy’s economy is contracting, and Eurozone unemployment is [at least] twice that of Britain.”
Mr. Halligan notes that “Norway’s $1T sovereign wealth fund, among the world’s most respected investors, has just confirmed it will boost its U.K. holdings.” “Over time, our U.K. allocation will increase,” said Yngve Slyngstad, the Norwegian Fund’s CEO. “With our 30-year plus time horizon, current political discussions don’t change our view,” he added, “reaffirming his commitment to Britain, even in the case of a “no-deal,” Brexit,” Mr. Halligan noted.
As Mr. Halligan notes, “this kind of clear-sighted, grown-up analysis from professionals contrasts sharply with the endless doom doom-mongering we get from subsidy-hungry politicos at the Confederation of British Industry (CBI), London’s premier business organization. It’s precisely because Britain will thrive after Brexit, that we attracted record foreign direct investment in 2018, beating the United States, with only China getting more. Even British start-ups raised almost 8 billion sterling in venture capital in 2018 — some 70 percent higher than Germany and France.”
And, Mr. Halligan adds, “Boeing has opened its first manufacturing plant in Europe — in Sheffield. Technology-driven investment is [also] piling in, not just to London; but, Manchester. And, as Brexit-bashing stories about planes not flying is trumped by reality, investors from China to the Middle East are flocking to a country just judged by Forbes magazine as “the best place in the world to do business,” for the second year in a row.”
I refer you to The Telegraph for the remainder of Mr. Halligan’s article. But, he concludes that “once the storm clouds have passed and we’ve safely left, Britain will stand out as an even more attractive [investment] destination — not least compared to a eurozone made up of member states increasingly prone to economic incoherence, and political extremes. Freed from the EU “structural fund” restrictions, there is a huge scope for a more effective U.K. regional policy, boosting growth across Britain. A dozen low-tax U.K. “free ports,” stymied under EU rules — would help spread the wealth across the country, as would post-Brexit agriculture and fishing policies, shifting subsidies towards smaller farmers, while reclaiming fishing grounds.”
The elitists of course are predicting dire things for Britain if it goes through with Brexit. I, along with Mr. Halligan, among many others — think the opposite. If there is a selloff in equities on a decision to go through with Brexit — that is a great buying opportunity IMO. Much as the market sold off initially when Brexit initially passed, only to rebound and recover quite quickly, the same could well happen here. RCP, fortunascorner.com