“Trade does not require force. Free trade consists simply in letting people buy and sell as they want to buy and sell. It is protection that requires force, for it consists in preventing people from doing what they want to do” – Henry George
Boris Johnson Confirmed as New British Prime Minister
In the wake of Theresa May’s departure from 10 Downing Street following her formal resignation on July 24th, Boris Johnson was confirmed as Britain’s next Prime Minister. In his opening speech outside the PM’s residence, Johnson addressed Brexit, clearly his highest-priority task.
While economists believe a No-Deal Brexit is in the cards, PM Johnson fired back, guaranteeing in no uncertain terms that Britain would leave the European Union by October 31st of 2019. Johnson stated that he has “every confidence that in 99 days’ time we will have (left the EU with) a new deal, a better deal.”
He further stated that “the doubters, the doomsters, the gloomsters, they are going to get it wrong, again,” and that “the people who bet against Britain are going to lose their shirts, because we’re going to restore trust in our democracy.”
His first move following his speech was to re-organize his cabinet, replacing “Remainers” with Brexit-believers.
Philip Hammond, the British Chancellor of the Exchequer (similar to the Canadian Finance Minister), resigned the same day, refusing to guide Britain out of the EU without a deal.
Economists do not agree with Brexiters’ outlook of a no-deal economic disruption only taking place over the short-term; the wide prediction is a longer-lasting, deep recession.
As a reminder, a no-deal Brexit means that effective November 1, tariffs will be placed on goods moving from Britain to all 27 EU countries, and vice-versa. There will be several other knock-on effects from a no-deal Brexit, such as being removed from trade agreements that the EU had negotiated with non-EU countries, such as Canada.
The British Pound Sterling has already declined to almost a two-year low. Immediately following the original Brexit vote in June 2016, the Pound Sterling was valued at $1.50USD. As no-deal talk has gained steam in recent days, the Pound has slumped, hovering around $1.24USD.
Sources: CBC.ca, Advisor.ca
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