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Old 18.04.2016, 16:21
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Re: The Brexit referendum thread: potential consequences for GB, EU and the Brits in

Something else worth keeping in mind:

Quote:
Lombard Odier said Britain’s ‘twin deficits’ – the current account and budget combined – are 9.6pc of GDP and almost as bad as in Brazil. It said the UK’s industrial base has shrivelled and household savings have collapsed to 4pc, “leaving very little margin of safety in the event of a shock."

Switzerland has been able to plough its own furrow over recent years in part because it is a net creditor with colossal overseas assets and a current account surplus of 10pc of GDP, a rare advantage it shares with Norway. Britain is the mirror opposite.
One serious question we should be address is why the UK (+ France and Spain) continues to generate a negative balance of trade while the EU, the Euro group, Germany, Italy, Belgium, Netherlands, Ireland etc... are all generating positive balances of trade. All countries face the same market conditions and EU regulations which would suggest that domestic affairs play a much bigger part in the story than the EU does, with possibly one exception: Euro group countries enjoy the advantage of being able to trade in an under valued currency without cost to their exchequers.
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