Cock Up!

What are the immediate effects of Britain leaving the EU, aside from Nigel Farage's u turn on NHS spending:

“No I can’t [guarantee it], and I would never have made that claim. That was one of the mistakes that I think the Leave campaign made,” he said.

When it was pointed out that Vote Leave emblazoned the £350 million claim onto the side of a tour bus and drove it around the country, Mr Farage said.
“It wasn’t one of my adverts – I can assure you! I think they made a mistake in doing that.

Translation is pretty basic: GOTCHA!

In other news the FTSE dropped by more than 8% which is a lost of £140 billion wiped from the market, taking us back in time to 1985.  The Bank of England responded saying that they intend to inject £250 billion back into economy to stabilize the markets.  The problem with that is you are effectively printing more money which will devalue the Pound further than it already has dropped today.

Inflation will rise also which is never a good thing:

"Fall in value of savings. If people have cash savings, then inflation will erode the value  of your savings. £1 million marks in 1921 was a lot. But, two years later, your savings would have become worthless. High inflation can also reduce the incentive to save.

Menu costs. If inflation is very high then it becomes harder to make transactions. Prices frequently change. Firms have to spend more on changing price lists. In the hyperinflation of Germany, prices rose so rapidly, people used to get paid twice a day. If you didn’t buy bread straight away, it would become too expensive. This destabilizes an economy.

Uncertainty and confusion. High inflation creates uncertainty. Periods of high inflation discourage firms from investing and can lead to lower economic growth."

Quote from: Economics Help

Increased inflation may force the Bank of England to raise interest rates in attempt to attract investors back to Britain.  Which is good thing for savers and bad thing for people with mortgages and those looking to buy. How I wish I made more over-payments on my mortgage instead of enjoying myself.

A lower Pound does mean UK exports will be cheaper in theory although should we exit the single market in 5 years time the tariffs we will end paying will probably offset the profits achieved.  UK imports however will become more expensive and we do import a lot.  Obviously this will push prices up!

In April 2016 the value of exports (EU and Non-EU) increased to £25.0 billion, and imports (EU and Non-EU) increased to £41.0 billion, compared with last month. Consequently the UK is a net importer this month, with imports exceeding exports by £16.0 billion.

Quote from: HM Revenue & Customs

Well done to 52% of the population of Britain you have managed Cock Up the economy, you have nobody to blame but yourselves this time.

This is just the thin of the wedge!