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the issue I see with that is that "balance of payments" is often represented by finished manufactured goods. Things that are bought for a solid price and whose value is accurately reflected within GNP.

Services, especially financial ones, have a much less mechanical relationship to GNP. The money never enters the UK financial sphere, is never taxed here, is never declared here. So, although financial services declare a fabulous value to the nation, the country only benefits from a shadow fraction of this value via wages (but rarely bonuses), and other land subsidies.

The UK is hevily represented in areas that provide no benefit, but has a hollowed out manufacturing base entirely unable to respond to increasingly favourable international trading circumstances

keep to the Fen Causeway

by Helen (lareinagal at yahoo dot co dot uk) on Tue Aug 22nd, 2017 at 05:12:34 PM EST
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The loss of spending from those employed in the current UK financial system will definitely be felt, just as the closing of a military base is felt. And the >10% of finance that does survive due to actual domestic demand will continue. This is not as bad as, say, the collapse of automobile manufacturing, which would leave the country totally dependent on imports for a basic good. What is important is how much can be made without need for much foreign exchange if the currency continues to be seriously devalued. It could well be that there are business people who were and are quite unhappy with the whole disinvestment parasitism of the financial sector and who will purchase on the cheap existing facilities where UK made goods could now again profitably be made and will start making them again. Ideally this would include new, high tech manufacturing processes such as are being developed around Oxbridge.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Tue Aug 22nd, 2017 at 06:32:12 PM EST
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