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The United Kingdom's historic decision to become the first sovereign country to vote to leave the European Union has reverberated across the world. Though it's unclear what a British divorce from Europe may look like, the decision may have caused unintended consequences for many Americans. Here's a look at six ways the Brexit may affect the US.
1. Cheaper holidays to the UK
About one in 10 visitors to the UK is American. And the exchange rate for the dollar is better for Americans in the wake of Brexit - it's now worth $1.48, down about 8% from a year ago, and at its lowest level since 1985. This means Americans going to see Big Ben, Stonehenge or Edinburgh Castle this summer can expect their dollar to go a lot further, at least for now. Michael Stitt, president of North America for Travelzoo, told the BBC that he advises any American travellers to the UK to check on the exchange rate right before a trip and to consider taking GBP out while the exchange rate is low and the dollar is strong. UK hotels will almost certainly offer deals and specials, he said, and vacation operators will likely put together some "pretty aggressive" packages for going on holiday to the UK. On the inverse, British travellers may think twice before booking a trip to the US because it will be more expensive, he said.
2. Higher airfares
Though an attractive exchange rate makes a summer trip to London more affordable now, Brexit could make flying in and out of the UK more expensive in the long term. The UK currently operates under a single aviation market that allows British airlines the freedom to fly between EU countries and the right to fly within an EU country. The EU also has a similar agreement with the US. The outcome of last night's vote means the UK may lose its rights to fly in and out those countries if new contracts are not negotiated, according to Andrew Meaney, the head of transport for economic consultancy Oxera. Ultimately, airlines could struggle to meet the same amount of demands with fewer services in and out of the UK. US airlines could also consider replacing London with a city such as Dublin as an entry point into Europe.
3. Uncertainty for Americans working in London
For American bankers living in London, the Brexit signals uncertainty about the capital's status as the world's largest foreign exchange market. US banks will have to decide on moving thousands of jobs to other major European cities such as Dublin, Frankfurt or Paris depending on whether the UK is able to negotiate new trade deals to retain access to the world's largest single market, the EU. In a memo to staff on Friday, JPMorgan Chase CEO Jamie Dimon indicated that though the company planned to maintain a large presence in Britain, it would face significant hurdles. "In the months ahead, however, we may need to make changes to our European legal entity structure and the location of some roles," Mr Dimon said. If Scotland should seek another referendum vote to leave the UK in the wake of Brexit, American bankers may find themselves packing their bags for Edinburgh, the second largest financial hub in the UK.
4. Retirement funds in jeopardy
The Brexit has roiled global financial markets, with the US, UK, Europe, Hong Kong, Tokyo and Sydney markets dropping at the opening bell. Many Americans are exposed to the stock market through their retirement plan, also known as a 401(k) plan. In fact, about half of America's full-time employees participate in their company's 401(k), according to the Pew Charitable Trusts. The UK's exit from the EU has already hit current market prices and could potentially trigger a recession. Investments in global stock markets expose Americans to such market turmoil, and could result in one's equity portfolio losing value.
5. Property boom
The U.K.'s unprecedented decision to leave the European Union sent shockwaves through the country and around the world Friday, rocking financial markets, toppling Prime Minister David Cameron and even threatening the ties that bind the United Kingdom. Britons absorbed the overwhelming realization that their anti-establishment vote has pushed the British economy into treacherous and uncertain territory and sparked a profound crisis for a bloc founded to unify Europe after the devastation of World War II. "Leave" campaigners hailed the result as a victory for British democracy against the bureaucratic behemoth of the EU.
Conservative former London Mayor Boris Johnson said "the British people have spoken up for democracy in Britain and across Europe," while Nigel Farage, leader of the hard-right U.K. Independence Party, said "the dawn is breaking on an independent United Kingdom." But for the 48 percent of British voters who wanted to remain - and for the 2 million EU nationals who live and work in Britain, but could not vote - there was sadness, anger and even panic. At a London train station, commuter Olivia Sangster-Bullers called the result "absolutely disgusting." "Good luck to all of us, I say, especially those trying to build a future with our children," she said.
The decision launches a yearslong process to renegotiate trade, business and political links between the U.K. and what will become a 27-nation bloc, an unprecedented divorce that could take a decade or more to complete. Cameron, who had led the campaign to keep Britain in the EU, said he would resign by October and left it to his successor to decide when to invoke Article 50, which triggers a departure from European Union. "I will do everything I can as prime minister to steady the ship over the coming weeks and months," a somber Cameron said outside 10 Downing St. "But I do not think it would be right for me to try to be the captain that steers the country to its next destination."
He also said he had spoken to Queen Elizabeth II "to advise her of the steps that I am taking." In a referendum marked by notably high turnout - 72 percent of the more than 46 million registered voters - "leave" won with 52 percent of the votes. Stock markets plummeted around the world, with key indexes dropping more than 12 percent in Germany and about 8 percent in Japan and Britain. Markets calmed and later recovered some of their losses after Bank of England Governor Mark Carney promised to take "all the necessary steps to prepare for today's events." The Dow Jones industrial average dropped 611 points, or 3.4 percent, its biggest fall since August.
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Some aspects of it are simply intolerable and should not be maintained.Nothing beats the sweet smell of good old fashioned nationalism.
Globalist socialism needs a kick in the nuts.
I don't know about "always". Obama has done everything in his power to insult England and destroy the relationship that we built with them. His first day in the Oval Office, he actually took the time to have the bust of Winston Churchill (sent to us as a gift shortly after 9/11) shipped back to them because of his hate of Churchill and England. It was a major slap in the face to them.My sincere CONGRATULATIONS to the Brits. They did the right thing.
Money isn't everything and they are not willing to put up with the offensive nonsense that comes with it. They will do well on their own. As long as they have us as a steadfast ally -- and they always will.
I was not aware that Obama sent back that bust. Did he mention his reason for such an insult?I don't know about "always". Obama has done everything in his power to insult England and destroy the relationship that we built with them. His first day in the Oval Office, he actually took the time to have the bust of Winston Churchill (sent to us as a gift shortly after 9/11) shipped back to them because of his hate of Churchill and England. It was a major slap in the face to them.My sincere CONGRATULATIONS to the Brits. They did the right thing.
Money isn't everything and they are not willing to put up with the offensive nonsense that comes with it. They will do well on their own. As long as they have us as a steadfast ally -- and they always will.
Even the UK sent Churchill packing when WWII was over..I don't know about "always". Obama has done everything in his power to insult England and destroy the relationship that we built with them. His first day in the Oval Office, he actually took the time to have the bust of Winston Churchill (sent to us as a gift shortly after 9/11) shipped back to them because of his hate of Churchill and England. It was a major slap in the face to them.My sincere CONGRATULATIONS to the Brits. They did the right thing.
Money isn't everything and they are not willing to put up with the offensive nonsense that comes with it. They will do well on their own. As long as they have us as a steadfast ally -- and they always will.
What's your point? That Obama is justified in unnecessarily insulting our strongest ally?Even the UK sent Churchill packing when WWII was over..I don't know about "always". Obama has done everything in his power to insult England and destroy the relationship that we built with them. His first day in the Oval Office, he actually took the time to have the bust of Winston Churchill (sent to us as a gift shortly after 9/11) shipped back to them because of his hate of Churchill and England. It was a major slap in the face to them.My sincere CONGRATULATIONS to the Brits. They did the right thing.
Money isn't everything and they are not willing to put up with the offensive nonsense that comes with it. They will do well on their own. As long as they have us as a steadfast ally -- and they always will.
Yes. The story was passed down that his grandfather was horribly tortured by the British during the Mau Mau uprising in Kenya. A few years ago, information came out that the alleged torture was completely false.I was not aware that Obama sent back that bust. Did he mention his reason for such an insult?I don't know about "always". Obama has done everything in his power to insult England and destroy the relationship that we built with them. His first day in the Oval Office, he actually took the time to have the bust of Winston Churchill (sent to us as a gift shortly after 9/11) shipped back to them because of his hate of Churchill and England. It was a major slap in the face to them.My sincere CONGRATULATIONS to the Brits. They did the right thing.
Money isn't everything and they are not willing to put up with the offensive nonsense that comes with it. They will do well on their own. As long as they have us as a steadfast ally -- and they always will.
Churchill one of the founding fathers of the EU..What's your point? That Obama is justified in unnecessarily insulting our strongest ally?Even the UK sent Churchill packing when WWII was over..I don't know about "always". Obama has done everything in his power to insult England and destroy the relationship that we built with them. His first day in the Oval Office, he actually took the time to have the bust of Winston Churchill (sent to us as a gift shortly after 9/11) shipped back to them because of his hate of Churchill and England. It was a major slap in the face to them.My sincere CONGRATULATIONS to the Brits. They did the right thing.
Money isn't everything and they are not willing to put up with the offensive nonsense that comes with it. They will do well on their own. As long as they have us as a steadfast ally -- and they always will.
Can I ask why you insist on making shit up when you don't even know the situation? Obama's hate stems from a situation where his grandfather was allegedly subjected to horrible torture by British soldiers during their occupation to stem the tide of the Mau Mau uprising in Kenya. The problem is, several years ago (and several years after Obama's slap in the face), it came out that the alleged torture was 100% false. I can't completely blame Obama as his family had passed the stories on to him and it's natural to believe one's family. But at the same time, when you come from radical communists, you should know that lying and propaganda is the corner stone of their ideology.
In any case, you look like a major fuck'n idiot (as usual) bashing one of the greatest leaders in world history when he has absolutely nothing to do with the story. Churchill is revered in England. It's why they had a bust made of him and why it was sent to the U.S. as a gift, you ignorant libtard tool.
You need to find a girlfriend of something. Having to sift through your one sentence, incorrect, nonsensical, disinformation posts just wastes everyone's time. You have no interest in learning anything or getting anything correct. You just want to feel like you're a part of something. It's sad and pitiful. If you really want to belong, then take a few minutes out of your life to learn the facts before commenting.
Are the NWO Globalist Elites getting nervous? Looks like it.
How the political class plans to sabotage the vote
Obama was a dick when he first took office, telling McCain in a televised meeting on capitol hill to shut up because he won and you lost John. Then he started doing anything he could think of to stick Great Britain and Israel in the eye. Like sending back a gift to the UK. Then he tried and failed to destroy the the GOP. In fact he is such a loser he has reinvigorated a new GOP a working middle class GOP, America First!I was not aware that Obama sent back that bust. Did he mention his reason for such an insult?I don't know about "always". Obama has done everything in his power to insult England and destroy the relationship that we built with them. His first day in the Oval Office, he actually took the time to have the bust of Winston Churchill (sent to us as a gift shortly after 9/11) shipped back to them because of his hate of Churchill and England. It was a major slap in the face to them.My sincere CONGRATULATIONS to the Brits. They did the right thing.
Money isn't everything and they are not willing to put up with the offensive nonsense that comes with it. They will do well on their own. As long as they have us as a steadfast ally -- and they always will.
