You are on board the EEC. There are four emergency exits, Brexit on the left, Frexit on the right, each marked with a red EXIT sign overhead. All doors except the overwing doors at 3 left and 3 right are equipped with emergency funds. These funds will keep you debt dependant for decades. Yes, it sounds like the speech a flight attendant might give you as you travel from the gates of the fake economic upbeat information towards the airport of Conturbare Gentem.
There is the impulse to state ‘the real issue is’, but that is not the case here. As we see ‘Brexit ‘will be the first step of the definitive decline of the EU,’ says former Prime Minister of Italy’ (at http://www.independent.co.uk/news/world/europe/brexit-will-be-the-first-step-of-the-definitive-decline-of-the-eu-says-former-prime-minister-of-a6861326.html). You see, I have been trying to warn my readers for well over 2 years on this danger. In a few cases it was laughed off loudly, but those ‘economic wannabe’ agents are not laughing now. When I was feeling a little evil. I asked them (as they honed me in public), to explain last week’s events, how it will lead to new prosperity. They basically told me to ‘f*ck off’. They are no longer laughing. I proclaimed these events, whilst also clearly stating that I am not an economist (a fact I did not deny). This situation was for the most a simple exercise of math, basic high school math actually, interesting how an economist missed that part.
The subtitle here is also interesting ‘Enrico Letta warns London ‘would lose a lot of influence’ on world stage‘, actually, it will not. As the UK turns their economy into a stronger engine, as we see this impact, we see that both Germany and the UK will get ahead faster and faster. Italy because of their election timing could end up with the worst deal (which sucks for Italians). You see, all that rattling we hear is empty and hollow. The financial markets might threaten to leave, but they will not, should they do so, than they end up in an even worse situation. Yes, they have options, but when the system crashes, their only option for now is Germany. If they select Paris, their issues will fossilise into a brittle solution, one that impacts their markets for decades.
In Germany they will be too isolated. In all honesty, their only decent alternative is Amsterdam, yet that comes with other perils. The Dutch DNB has stronger rules in place, so in that regard Paris seems a better choice, but overall that move isolates them from a few places down the road. London will remain the better option. And it is not even close to any decision. When we see the AFP article (at https://au.news.yahoo.com/world/a/30812452/cameron-confident-of-reaching-eu-deal-to-avoid-brexit/), we also see second rate top people go all out with quotes like “pragmatism and courage… and their ability to compromise” or “my wish is that the United Kingdom is and remains an active member of a successful European Union“, which are unique examples of misdirected communication. The “a deal could be reached allowing Britain to remain in the European Union and avoid a so-called Brexit” sounds so nice, but in the end, there is still a referendum and because too many European players were sitting on their thumbs creating ‘ease and inaction’, maximising their gravy train. The people have caught on and they are not playing nice anymore. Just 9 days ago in my article ‘Intimidating the Euro‘ (at https://lawlordtobe.com/2016/02/04/intimidating-the-euro/), I mentioned the BBC article (at http://www.bbc.com/news/business-35122710), which was claiming that “Now the experts are predicting once again that the economy will return to growth in 2016, unless something else gets in the way“, so how ‘lame’ are these experts? Only a weak later we see in the Guardian (at http://www.theguardian.com/business/2016/feb/12/eurozone-recovery-falters-greece-recession), giving us “Greece fell back into recession“, oh really Captain Urban Funding? So cheap oil and the ECB stimulus was kind of pointless, was it not? So when we get these aggregated levels of bad news, explain to me how a united economic Europe is anything other than a really bad idea? One the UK should seriously consider getting out of and that will drive the immediate departure of France and Germany. The scenario I predicted all along. And for 2 years experts, the media and political players remained in denial.
Now we see added ‘news’ on how Brexit works for Putin, which clearly reads like an American, ‘communist fear’ as pressure for keeping the UK right where it is now. That does make sense, because the collapse would have an impact on US economy. The Dow Jones Index would be hit a lot harder than it was in 2004 or 2008. In my view, the EEC has no future because it will not correctly deal with the legislation to prevent the non-accountable acts of some, which was the direct reason of this mess in the first place. Greece was never held to account the way it should have. The news on ‘new’ Grexit fears as we see that there is no solution where we see that the Greek government and European creditors have come up with a credible plan to make the country’s debt sustainable. Yet the established situation that Greece cannot be evicted gives rise to additional worries, which fuels both Brexit and Frexit. The Financial Times (at http://blogs.ft.com/brusselsblog/2016/02/08/brussels-briefing-back-to-turkey/), gives more on Frexit. Yes, all parties agree that this will only happen after a referendum, yet what is not given directly is that this would be the first act by Marine Le Pen if she gets elected. Both the Hollande and Sarkozy fronts are scared there, because Marine might only get elected with a clear majority, when that happens, neither party will have any options to stop Frexit from becoming a reality. Which gets us back to that ‘Greek news’. I believe that the parties have all come to an arrangement with the fears that Brexit brought. Because the EEC exit cannot be made enforced under current EEC legislation (discussed in previous blog articles), the article, in my personal view implies that Greece will volunteer to opt out of the Euro on the concession of debt relief, with total debt forgiveness being a possibility (my speculation). What will remain unspoken is that those parties who would, if successful to keep the EEC alive, will only do so when the price is right. That implies taxation not relief on several fronts (for non-Greece nations), realistically it will be a tax that will last generations. Did the people of Europe sign up for that? A Europe that is even less accountable to a chosen few (who forgave debt)? That path basically spells out that these ‘providers’ will get their money’s worth in the form of grants and non-taxability, but at the expense of all the other European citizens. So how is Brexit anything else but a really good idea? In addition, the Financial Times reports, or better Christian Oliver alerts us to the fact that Greece took a fall for Schengen (at http://blogs.ft.com/brusselsblog/2016/02/12/greece-takes-a-fall-for-schengen/). The quote “Athens has received a list of 50 measures that it should undertake to improve its handling of the tide of refugees“, which sounds great, but it is extremely short sighted. The quote “The EU insists that Greece needs to take the 50 steps, citing “serious deficiencies” in the management of the country’s external borders” is even more hilarious. You see, that risk has forever been there, there used to be some level of control, but now we have a bankrupt nation, its requirement to cut staff by almost 66% and the need to build a collapsed infrastructure. There are mere matters of fact. Greece has thousands of miles of borders that are a nightmare to watch. With the inability to get the Syrian matters under control people are running like crazy, they either run through Turkey or the swim from island to island (either way they have a 50% chance to make it). So, how are these requirements anything but a joke, anything but a hollow requirement from the Greek government? The mere logic (and any cheap world map) shows us that those refugees had to get around Cyprus and get either via Turkey, or take the waterway directly, which is well over an 800 Km trip, taking them past Turkey most of the way. So when we consider speeds, on smaller loaded ships, it would be a 3-5 day trip past the Turkish navy, so why is the Schengen council not having this discussion with associate EEC member Turkey? You see, we can blame Greece for many things (actually, just their politicians), but the refugee wave is something Greece got overwhelmed with, even with a functioning economy it would have overwhelmed Greece. More important, how are the refugees getting to the Greek islands? This can only be done with Turkey either ignoring refugee transgressions on their territory (which is weird as they shot down a Russian jet after it allegedly invaded their airspace for 14 seconds), yet refugees that have travel past Turkish waters for days are casually ignored.
It seems to me that we are watching a new game, one that is burdening Greece on many sides, only to allow Greece to cast themselves out of the EEC/Euro for a price. A price the other taxpayers must pay for and they still hope that Brexit will be averted? Good luck with that notion!
So as the Brits and the French are looking at the exit signs to get off the plane, they are still confronted that the pilot of that plane has been massively irresponsible. Its maintenance crew has maintained the plane on the foundation of their ego and as such certain best practices, practices that a real engineer would have taken were ignored. This has led to today’s predicaments. The Brits are of mind that even in flight, getting off is more likely to lead to a survivable situation that silently staying on the plane will. When the Brits get off, the planes integrity will be permanently compromised, which leads to the events I predicted.
So now the media is giving us more and more articles on the crew giving us horror stories on what happens when someone opens that door. Yet, some of them are exaggerated. In the end the opening of the door could just force the plane down to the nearest airport where the passengers who no longer trusts the pilot could disembark. We do not deny the risks, but the current pilot is taking the plane to places the fuel reserves cannot reach.
Yet in addition to what I already claimed, the British City A.M. (at http://www.cityam.com/234438/ignore-eu-scaremongers-why-britain-would-thrive-post-brexit) gives us ‘Ignore EU scaremongers: Why Britain would thrive post-Brexit‘, which is partially the view I have. Ruth Lea, economic adviser to the Arbuthnot Banking Group gives us “a timely reminder that we are a crucial market for EU exporters – £89bn of the total £125bn goods deficit for 2015 was with the EU, £31.6bn with Germany alone. For every £3-worth of exports to the EU, Britain imported £5-worth from the EU. It is quite simply inconceivable that any German car exporter or French wine exporter would wish to see any impediments to their trade with Britain“, which I see to be a partial truth. You see, that is what it is and in the future it is what it was, but for a time, we will see European resentment and anger. Several European nations will take part of the £3-worth of exports and they will find another place in Europe to get between £1 and £2 of that export and find another source. That element is equally ignored. It will be up to that current UK government to make quick and lasting agreements that would diminish the losses, but it will again be in the hands of the UK, not squandered by EEC inaction. Should you think that my view is exaggerated, then consider recent news! How the economy grew 0.3% yet billions were pushed into it for the ‘reasoning’ of stimulus. Now consider that stimulus refers to attempts to use monetary or fiscal policy to stimulate the economy. Stimulus can also refer to monetary policies like lowering interest rates and quantitative easing. So, how was the economy stimulated? If we consider the Wall Street Journal (at http://www.wsj.com/articles/ecb-announces-stimulus-plan-1421931011), we see ‘European Central Bank to Purchase €60 Billion Each Month Starting in March‘ that amounts to over 400 billion for 2015 (6 months, Mar-Sep). The quote “the ECB will buy a total of €60 billion a month in assets including government bonds, debt securities issued by European institutions and private-sector bonds“, so how did this benefit the UK or people in general? Now to get back to stimulus, where we saw the inclusion of quantitative easing. Let’s take a look there too: “A central bank implements quantitative easing by buying financial assets from commercial banks and other financial institutions, thus raising the prices of those financial assets and lowering their yield, while simultaneously increasing the money supply“. with ‘references’ in play, in my view, the Stimulus by ECB President Mario Draghi is nothing more than a catch and refund net for bad investments, buying back a paper tiger that was not worth the paper it was printed on, allowing governments to spend again. How does that benefit the people?
These elements are all in play, because as people realise that this economy is so that the large corporations go on not being tax accountable, governments spend money on so many things that benefit everyone except the people in general. Consider how many actual problems 400 billion could solve, not some joke called ‘the EEC economy’ but broken things we could actually fix!
Lawrence van Rijn - Law Lord to be 