Pound spikes above $1.33 as IMF admits financial market turmoil triggered by shock Brexit vote has subsided
"The financial market turmoil triggered by the Brexit vote has subsided, according to the International Monetary Fund, in an embarrassing admission just months after the Fund warned of a vicious cycle of falling house prices and slower growth.
The Fund said growth in the run up to the referendum had "surprised on the upside", while measures taken by the Bank of England to boost growth would "support the economy" and cushion some of the negative impact.
The IMF still expects a sharp slowdown in growth in the third quarter, following growth of 0.6pc in the second quarter."
The IMF has been getting pretty much everything wrong for decades. They are an embarrassment, and they damage country after country imposing bad economic advice in exchange for loans which end up (when combined with the bad economic advice) destroying the country's economy, and it's monetary system.
Shut this travesty down.
"UK manufacturing activity recorded its biggest month-on-month increase in a quarter of a century in August as production and new orders jumped following the initial shock of the Brexit vote.
Markit's latest survey of the sector showed factories were returning to "business as usual" following a steep downturn in activity immediately after the June 23 vote.
The weaker pound helped to push up overseas orders, while domestic output also bounced back and employment rose for the first time this year."
Any reasonably adept first year economics student would have forecast this growth if ask in exam. The IMF? No, they forecast DOOM.
The US now needs to begin to push for a pan anglosphere free trade confederation based on those nations permanently rescinding import trade barriers. The US should act unilaterally to begin this movement. We should lobby the others, particularly Britain, Canada, Australia, New Zealand, India, and the others to follow suit.
It is well accepted that tariff free imports create wealth to the nation after eliminating the barriers. Or to say it another way, tariffs hurt the people in the country imposing them while making a few very wealthy people in the country even wealthier. Eliminating the trade/tariff barriers makes the people in the country wealthier by increasing the nations GDP.
The Foundational Economic Case for Free Trade - Cafe Hayek
Milton Friedman Discusses Free Trade - Cafe Hayek