November 01, 2018

S&P: “No Deal” Brexit will cause “immediate” UK recession

Jack BuckbyRebel Contributor

Market intelligence and credit rating agency Standard and Poors has released a report claiming that if Britain “crashes” out of the EU – ie, leaving without a deal and on our own terms – we’ll experience an “immediate” recession, spiking unemployment, and inflation.

The report suggested that a No Deal Brexit could even lower the economy’s long-term growth potential, in a new scare that sounds like something right out of Project Fear’s 2016 playbook. They say we’ll see a 5.5 per cent decline in Britain’s economy over a period of three years, with much of the loss being permanent. It also suggests that the British economy will shrink by 1.2 per cent overall, leaving behind a potential of 1.3 per cent growth if we stayed in the European Union.

Is anyone believing this? Even the Treasury’s own prediction in the run up to the Brexit referendum were wrong – and they weren’t wrong by a small margin. In fact, former chancellor George Osborne’s predictions were blasted as a “giant error” and a “gross miscarriage of government” when it was revealed they were wrong by as much as £100 billion.

In fact, there was even a previous prediction made by Goldman Sachs that Britain would experience a recession by 2017, simply by voting to leave the European Union. This was the same Goldman Sachs that donated £500,000 to the Remain campaign of course.

So forgive me if, yet again, I refuse to believe the lies being peddled here. This is a particularly weak attempt at scaring the British people, again.

Predicting recessions is so 2016. They should be predicting Theresa May having a mental breakdown, or Boris Johnson taking inspiration from Cromwell and becoming the new Lord Protector of Britain. I could probably take those predictions more seriously.

Comments
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commented 2018-11-02 17:00:48 -0400
Naturally the opposite of what the “experts” predict will continue to happen. If it goes hard Brexit invest in UK.
commented 2018-11-02 03:39:55 -0400
Keith Barnes, there is no indication whatsoever that Britain is becoming a “Marxist” state. (Control of the means of production, consumption, distribution and exchange is as firmly in the hands of Capital as it ever was – more so that during the 1960s and the 1970s, in fact). There is however every indication that Britain is becoming an increasingly authoritarian oligarchy: rule by the rich for the rich.
commented 2018-11-02 03:28:24 -0400
When I voted Leave I did so understanding that quitting the EU would not enhance Britain’s economic prospects. But I voted Leave anyway: an economic downturn strikes me as an acceptable price to pay for seizing back our sovereignty.
Of course, during the immediate aftermath of the 2008 financial crisis, I at last began to understand that the age of endless economic growth enjoyed by my parents’ generation was gone for good: developments since then appear to support this understanding. But then we all know deep down that infinite economic growth is unsustainable on a planet with a rapidly multiplying Human population (since I turned twenty, the global Human population count has risen by almost four billion) and apparently endless exploitation and abuse of the Planet’s very definitely finite natural resources by those seeking to make a quick buck or billion.
Short of radically reforming the global economic system, and engaging in draconian measures to limit Human population numbers, there is little we can do to change this situation. In the meantime, however, we in Britain can at least regain our national sovereignty.
When I voted Leave that mattered quite a lot to me. Two years have passed, and somehow it no longer matters very much, but even so, I would n’t change my vote if I had it over again.
commented 2018-11-01 19:14:47 -0400
Jack, are you saying that there are actually people who believe what they read in Newspapers and on the BBC, ITV and Red Sky News. No wonder that the UK is rapidly becoming a Marxist State.

Nigel Farage where are you, duty calls.