Post-Brexit Planning

Brexit will be done by the end of next month, when trade negotiations with the EU will begin. Importantly, Britain’s negotiating position has strengthened immeasurably, and the new government is not afraid to use it.

This Conservative government has a greater sense of political and economic direction than Britain has seen in a long time. Unbeknown to the public, not only will the establishment that obstructed Brexit be side-lined, but a slimmed-down post-Brexit cabinet through a network of special advisers lead by Dominic Cummings will revolutionise central government, reducing bureaucracy and refocusing resources on public service objectives instead of wasted on process.

But there is a dichotomy. While both the government and the new intake of MPs lean towards free markets, Cummings and Johnson will increase government intervention to secure their electoral advantage for the future, and to ensure a planned outcome in a world which in following decades will be dominated by new large Asian economies.

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Fiat’s Failings, Gold And Blockchains

By Alasdair Macleod – Re-Blogged From GoldMoney

The world stands on the edge of a cyclical downturn, exacerbated by trade tariffs initiated by America. We know what will happen: the major central banks will attempt to inflate their way out of the consequences. And those of us with an elementary grasp of economics should know why the policy will fail.

In addition to the monetary and debt inflation since the Lehman crisis, it is highly likely the major international currencies will suffer a catastrophic loss of purchasing power from a new round of monetary expansion, calling for a replacement of today’s fiat currency system with something more stable. The ultimate solution, unlikely to be adopted, is to reinstate gold as circulating money, and how gold works as money is outlined in this article.

Instead, central banks will struggle for fiat-based solutions, which are bound to face a similar fate with or without the blockchain technology being actively considered. The Asian and BRICS blocs have an opportunity to do something with gold. But will they take it?

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America’s Trade Policy Will End Up Destroying The Dollar

America’s tariffs against China are already showing signs of undermining the global economy and will create a funding crisis for the Federal Government when it leads to foreigners no longer buying US Treasury debt and selling down their existing dollar holdings. A subversive attempt by America to divert global portfolio investment from China by destabilising Hong Kong will force China into a Plan B to fund its infrastructure plans, which could involve actively selling down her dollar reserves and hastening the introduction of a new crypto-based trade settlement currency.

The US budget deficit will then be financed entirely by monetary inflation. Furthermore, the turn of the credit cycle, made more destructive by trade tariffs, is driving the global and US economy into a slump, further accelerating all indebted governments’ dependency on inflationary financing. The end result is America’s trade policies have been instrumental in hastening the end of the dollar as the world’s reserve currency, ultimately leading to its destruction.

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Tesla Factory Store Uses Diesel Generators to Recharge Slow-moving Model 3 Inventory

By – Re-Blogged From TTAC

Let’s say you manage one of the soon-to-be-closed Tesla factory-owned stores and, for whatever reason, you have dozens of brand new Model 3 EVs sitting unsold on your lot. What are you going to do if one of them has a discharged battery? As car dealers learned a long time ago in the gasoline era, batteries won’t keep a charge forever and cars sitting for a long time sometimes need a boost to their batteries.

That’s true whether it’s a conventional 12 volt lead-acid battery for an ICE-powered vehicle’s electrical system or it’s the lithium-ion battery pack that powers a EV. That’s why car dealerships for conventional vehicles have battery tenders, heavy duty chargers that can be wheeled around the lot to whichever car might have a dead starter battery.

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Making Italy Great Again

By Peter Schiff – Re-Blogged From Euro Pacific Capital

This week, market watchers around the world are justifiably fixated with the high-stakes, high-drama political developments unfolding in Italy. While a political crisis in the world’s 9th largest economy (International Monetary Fund figures, 4/17/18) would normally not be enough to cause an international meltdown, given how thin the global economic ice has become as a result of ever-increasing debt loads, even small disruptions can create systemic problems. But from my perspective, what makes the Italian drama so interesting is that it parallels so precisely developments in the United States. It’s amazing that more Americans do not realize, that when looking at Italy, they are looking at a fun house mirror reflection of the United States.

Italy is currently dealing with the results of an election in which populist political forces scored a big victory over the establishment, which they had judged to be both corrupt and ineffective. In other words, the Italians replayed the 2016 Presidential election in the U.S. The big difference is that here the anti-immigrant tendencies of the right and the economic populism of the left were united in one person: Donald Trump. In Italy, those positions are represented by two separate parties that normally would be rivals. But politics can make very strange bedfellows, and the absurdity of the current economic reality has made them partners.

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Italy Looms on the Eurozone’s Horizon

By Adriano Bosoni – Re-Blogged From Stratfor

The skies may not be clear, but these days Europe’s leaders are more relaxed than they were when the year began under foreboding clouds. Economic growth is gaining momentum and unemployment is slowly going down. More important, voters in France rejected candidates opposed to the European Union, and moderate forces will remain in power after September’s general elections in Germany. But while things are relatively calm in the eurozone’s two main economies, the next big challenge for the currency area will come from its third-largest member, Italy. The country has to hold general elections by May, and the vote will take place amid discontent with the status quo, which in many cases includes skepticism about the euro. Given the size of the Italian economy and the depth of its problems, the country’s politics could have consequences far beyond Italy’s borders.

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Brexit’s Potential to Fracture the U.K.

Re-Blogged From http://www.Stratfor.com

Analysis

Splitting from the European Union will inevitably strain the United Kingdom’s territorial integrity. Those pushing for Scotland and Northern Ireland to secede from the United Kingdom are using Brexit to justify their agendas. Brexit will also open a debate between the central government in London and the country’s devolved governments about who will control the powers that will be repatriated from Brussels. With authority over policy areas such as agriculture, fisheries, industry and the environment returning to the United Kingdom after Brexit, the administrations of Wales, Scotland and Northern Ireland will push London to transfer many of those attributions to them.

Brexit's Potential to Fracture the U.K.

The independence movement in Scotland stands to gain momentum from the Brexit. (JEFF J. MITCHELL/Getty Images)

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12 Financial Experts for 2017

By Daisy Luther – Re-Blogged From Freedom Outpost

What lies ahead for the economy this year? Will the economy finally collapse as predicted by many or will the early positive signs in stock markets around the world continue and the global economy will flourish?

I’ve taken a lot of heat for being “gloomy” and for “fear-mongering” lately when I’ve said that President-Elect Trump is inheriting a mess of epic proportions and that we may still be in for a rough financial ride. While I do think that Trump is a far better choice than Hillary Clinton ever could have been, when a situation has been declining as long as ours has, it would take an absolute miracle to turn it around without some pain.

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Why Europe Must End In Tears

By Alasdair Macleod – Re-Blogged From http://www.Gold-Eagle.com

The latest consequence of economic mismanagement in Europe was the failed attempt at constitutional reform in Italy this week. The Italian people have had enough of their government’s economic failure, and is refusing to give it more power.

The EU and the euro project have been an economic disaster for all participants, including Germany, which will eventually be forced to write off the hard-earned savings she has lent to other Eurozone members. We know, with absolute certainty that the euro will self-destruct and the Eurozone will disintegrate.

We know this for one reason above all. The political class and the ECB are guided by economic beliefs – I cannot dignify them by calling them reasoned theory – which will guarantee this outcome. Furthermore, they insist on using statistics that are incorrect for the stated function, the best example being GDP, which I have criticised endlessly and won’t repeat here. Furthermore, the numbers are misrepresented by government statisticians, CPI and unemployment figures being prime examples.

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This Is Where I Get Off

By Jeff Thomas – Re-Blogged From http://www.Silver-Phoenix500.com

We began writing on the War On Cash some time ago, when it was still just a theoretical ploy that we believed banks and governments were likely to employ as their economic adventurism continued to unravel.

But, in the last year, several countries have, as a part of the War On Cash, begun removing larger bank notes from circulation in order to force people to perform all economic transactions through the banking system, assuring that the banks would gain total control over the movement of money.

Of course, the banks could not admit their true goal to the public. They instead used the governments to claim that the measure was being undertaken to restrict crime (money laundering, drug deals, black marketing, terrorism, etc.)

Recently, without any fanfare, ATM’s in Mexico have ceased issuing the 500 peso note US$24). The largest note is now the 200 peso note (US$10).

At about the same time, Citibank in Australia declared that it will no longer accept coins or banknotes.

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Italy: The Biggest Elephant Jeopardizing Europe And The Euro

By Jeff Berwick – Re-Blogged From http://www.Silver-Phoenix500.com

Not just the euro, but the entire European Union may be in jeopardy next week when the Italians vote on a constitutional referendum initiated by Prime Minister, Matteo Renzi.

What a Jubilee year it has been. First Brexit, then Trump and now it appears Italy is on the cusp of also escaping the grasp of the European Union.

After two years of directly covering trends involved with the disintegration of Western culture in my book Shemitah Trends, I can say with confidence that what has been built up is being torn down. That includes the European Union which will either gradually or abruptly collapse into various pieces.

Nonetheless, the overall centralization and authoritarianism of Europe will not cease. It simply will be ruled in pieces instead of as one region. The disasters that will come as a result of the fracturing, will be used as justifications to create the additional globalism that our controllers seek – though in general, most people are opposed to it.

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EU Faces Painful Budget Battles After Brexit

By Stratfor – Re-Blogged From https://fabiusmaximus.com

Summary: Europe’s elites warned that Britain would suffer for daring to leave the EU. Suffer severely and soon. Four months have passed since the June 23 vote and Britain has felt no ill effects. Britain might have the last laugh, since the EU has to redo its budget following the loss of its second largest contributor. The EU is already under stress. Cutting the budget and raising taxes will make it worse. Perhaps sparking more exits.

Stratfor

A Bitter Budget Battle Looms in the EU
Stratfor, 13 October 2016.

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Brexit Post-Mortem

By Alasdair Macleod  Re-Blogged From GoldMoney

It is a month after Britain’s surprise vote to leave the EU. A new Conservative Prime Minister and Chancellor are in place, both David Cameron and George Osborne having fallen on their swords. The third man in the losing triumvirate, Mark Carney, is still in office. Having taken a political stance in the pre-referendum debate, there can be little doubt the post-referendum fall in sterling was considerably greater than if he had kept on the side-lines.

This article takes to task the Treasury’s estimates of the effect of Brexit on the British economy and Mr Carney’s role in the affair, then assesses the actual consequences.

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European Bankers Back to Begging for Bailouts!

By David Haggith – Re-Blogged From Great Recession Blog

Nothing is more shameless in a bedazzling sort of way than rich banksters standing on the public curb with their hands out. First, we had the admission this past week by a major French bank that Italian banks are so sick (and so too big to fail) they could cause systemic banking failure throughout Europe if not bailed out by over-taxed taxpayers.

Lorenzo Bini Smaghi — who was a member of the European Central Bank’s executive board and who is now Chair of French megabank Societe Generale — said the only way to save European banks, if they start to fall like dominoes due to Italy’s banking problems, is with taxpayer-funded bailouts.

Europe’s banking market faces the risk of a systemic crisis unless governments accept the idea of taxpayer money as the ultimate recourse in a crisis, Bini Smaghi said. Any intervention should be as swift as possible, he said. (Newsmax)

A French CEO says his massive bank and others could fall like dominoes due to Italy’s problems? That has to be good for his falling stocks. So, you ask yourself, why would he say something to spook an already scared stock market?

Then we had Italy’s Prime Minister Matteo Renzi, pressuring Europe to bail out Italy’s banks by pointing out that Italian bank problems with bad loans pale in comparison to Deutsche Bank’s towering derivatives problem over in Germany.

“If this non-performing loan problem is worth one, the question of derivatives at other banks, at big banks, is worth one hundred. This is the ratio: one to one hundred,” Renzi said. (Zero Hedge)

Gee, you’d think they were trying to talk the EU into a panic … as if it weren’t already there. Considering that 17% of Italy’s bank loans have gone sour (which sounds monumental to me), Deutsche Bank must be bad beyond belief at a hundred times worse! That’d be an undoable 170% bad, which is pretty dang bad!

Italian banks are deep into the sour apple bin because their solution to bad loans during the last crisis was to just roll them along by not foreclosing and hope that future economic growth would make the borrowers solvent again, but that kind of economic expansion never came. That left a lot of decay down in the apple bin after the Great Recession, and not too surprisingly the rot has spread. The amount of decay is now four times bigger than it was back then … and it was deadly then! As horrible as that sour mess is, Italy’s premier tells us Deutsche Bank is a hundred times more dangerous than that!

Why are banksters and politicians taking this beggar-thy-neighbor approach by pointing out how bad other European banks are — the Frenchy pointing at Italy, the Italian pointing at Germany? Statements like “Our own banks are so bad they need immediate bailouts, but they’re only a hundredth as bad as yours” are not statements that former central bankers, current megabuck megabank CEOs and prime ministers usually make when they all live or die under the same economy.

When you see a lot of rats like that scurrying together up the stairs of the ship, you might want to make a move for the lifeboats.

The answer must be that it’s a desperate play. European bankers are scared spitless at the abyss that is opening around them. They need to drive fear like a stake into the hearts of the masses and their fellow politicians in order to get the immediate bailouts they lust after if they are going to save themselves while keeping the masses from rebelling Brexit-style against them. These are desperate words from desperate rich guys who see their own money going down the drain if the public doesn’t rescue them.

Italy’s premier wants to inject state cash into failing Italian banks to recapitalize them. That’s because the banks can’t recapitalize by issuing stock when their stock is nearly worthless. I’m sure that sea chests full of state money would give his wealthiest friends nice chairs to sit above the waterline in the lifeboats, but public bailouts are now against the EU’s post-Great-Recession regulations so he’s trying to scare the EU into bending on the regs.

Shameless are the banksters and shameless are their political pals with their “your money or our lives” piggy bankster terror.

How close to falling off a cliff is the EU now that Brexit has kicked them in the ankles?

As Jeff Gundlach said this week, Watch Deutsche Bank shares go to single digits and people will start to panic… you’ll see someone say, ‘Someone is going to have to do something’. (Zero Hedge)

They’re not even waiting that long, Jeff. That is what these bankster and politician statements are all about. To keep the masses from revolting, everyone needs to be made intensely afraid of what will happen as the alternative if the dinosaur banks are not given public CPR, and in Deutsche Bank, they have much to be afraid of, as it towers over the world with over $70 trillion of derivatives exposure.

Let’s hope the public has had enough of putting its lips to the dinosaurs’.

Leave it to mega banksters to get the solutions entirely wrong … again

They never learn from their failures, and they’re hoping the public never learns either … or, at least, that the public can be scared beyond its learning curve. (A hope that failed with the brave British exit. So, the banksters are a little afraid now that the smell of revolt fill the air like gun smoke.)

The only solution to the failure of behemoth banks that bloated banksters can come up with is that taxpayers should bail them out in order to save themselves from having the banks collapse on them. It never enters their minds that, if these banks are already known to be too big to fail, the most obvious solution was to break them up a couple of years ago before the bad stuff hit so that they could be parted out in an organized manner. It’s a little late now, but it would still be better than additional conglomeration:

Smaghi wants to go further than just bailing out the failures. Instead of breaking the behemoths up so they don’t roll over and crush entire nations, Smaghi’s answer is to bail them out and make them bigger:

Both Italy and Germany have too many banks that are not profitable and more consolidation is needed, the chairman said.

You would think that, if ever there was a no-brainer for what not to do, making too-big-fail banks bigger would be it; but, as I wrote at the start of the Great Recession, even George Bush’s solution was to double down on the size of banks, which he was first to publicly call “too-big-to fail”:

Whenever one of our economic titans teetered on the edge of bankruptcy this past year, the peril from its collapse to everything in its shadow pressured the executive branch to create a deal over the weekend before the market opened again on Monday. The masterminds of mayhem rushed in to pump some “good” news into Wall Street ahead of the market opening to avert disaster. At every turn, the government’s answer to the risk of corporate obesity was to take two weak and wobbly mammoths and cobble them together into some bigger and more ungainly creature. Each resulting conglomeration came out looking like Frankenstein’s monster with all its seams showing. Thus, many of the following solutions were amalgamated during midnight hours in the board room laboratories of the Washington Wunderkind. (“Collapse of the Colossus“)

They’re too big to fail, so solve their problems by doubling them in size? I don’t know how you get any dumber than that even by hitting yourself over the head repeatedly with suitcases full of money. The solution advocated for busted banks that require taxpayer bailouts is, according to Bush back then and Smaghi now, to conglomerate the failing monstrosities into even larger institutions.

History is repeating itself in such a manner that I could just change the names of banks in my article and republish the same article today that I wrote about this nonsense years ago:

J.P. Morgan Chase and Company, a name that was already a mouthful of earlier conglomerations, gulped down a belly full of Bear. I guess that would make them the J.P. Morgan, Chase, Bear, Stearns, and Company. The Federal Reserve helped prepare the Bear to make it more palatable for Morgan to eat. Apparently that role is the meaning behind their nickname “Fed.” Somehow the Fed thought a dying beast fed on Bear would be an improvement on the “too big to fail” scale.

Fat on Bear, you’d think the beast would have been satisfied for a little while, but within a month it felt the need to digest the largest bank failure in world history — Washington Mutual. Again, the Fed cooked the meal. I won’t even try to squeeze that addition into J.P.’s burgeoning name, except to say that the feeding frenzy was mutual. And with that, J.P and Companies acquired a bank that was even a different breed from itself. An investment bank consumed a consumer bank.

Sighs. We never learn a thing … even on the obvious stuff. The worst part is that nearly a decade on, the public keeps sucking this swill up. Well … until Brexit. Let’s hope Brits stay the course and others join their revolt.

Smaghi’s got a smoggy brain if he really believes his own solution, but that’s a group-think peril in the banking industry anyway. It’s ludicrous to believe you can make giant corporations more efficient by stuffing two of them into the same suit. It is far beyond merely ludicrous to think that you can take one extremely unhealthy supersized corporation and make it healthier by stuffing another dying giant inside of it! That’s like curing cancer by feeding the patient a diet of fried tumors.

At an early point, sure, making a business bigger creates economies of scale … if both of the businesses you marry together are reasonably healthy. At some point, however, that nasty old Law of Diminishing Returns I keep ragging about kicks in. The periphery of the corporation becomes too far removed from the center to be well managed. No one really understands everything the business is doing. Employees can hide among the masses to where no one knows someone is not working because no one even knows what that guy’s job is. One branch doesn’t know it is repeating the work of another branch. Etc.

If banksters like Smaghi really believe these banks cannot sink without capsizing all of Europe in their wake, then the responsible thing to do is to begin a “Ma Bell” on them — start tearing them down into smaller, more efficient, profitable companies. Time for reorganization. That way they the worst parts can crash safely on their own later on without any help from the rest of us.

The answer is certainly not to start rerevising all the newly revised regulations, as Smaghi and others are rapidly recommending. Why would we want to return to the starting point of the last massive crash?

Will the public be beggared or buggered…British style?

I wonder if European taxpayers are angry enough yet to revolt against Smaghi’s suggestion. The rest of Europe doesn’t seem as brave as the Brits. Take Greece, for example, which chose to stay in perpetual bondage to its German dominatrix. Even in the UK, the peasant revolt is dicey. Brexit was certainly a vote against this kind of elitist arrogance, but already many Brits are scrambling to find ways to overturn their own democratic decision because massive changes inevitably cause a volatile repositioning in markets. Revolts aren’t tidy.

You’d think after the Great Recession all central banks would have stopped allowing consolidation of the massive banks they oversee. Well, you’d think that if you believed they were really all that concerned about banks being too big to fail. That everything they do continues to make big banks bigger shows all they really care about is getting taxpayers to bail out their cronies.

Because taxpayers have not insisted on breaking up big banks for taxpayer protection, it has not happened. Until they demand it, as the Brits demanded Brexit, it never will happen! It is not a concept that would ever occur to imperial banksters. It is not the way their kept politicians think either.

After a decade of unbearable banking behavior that has spiraled right back to where we started … only higher up for a bigger fall, revolt could easily break out everywhere. But don’t expect the public to be smart. They’ve been completely blind while the banksters buggered them so far. Just expect them to be mad as hornets when you stir up their bin of rotten apples.

Brexit is an organized revolt with a clear objective of extraction from a bloated and failing enterprise, but it will still be incredibly messy. The domino effect of what fails because of the extraction will take months to play out. With surgery, there is blood and there is swelling, and there is pain.

I expect a growing number of simply angry revolts to occur from this point forward that will be far messier. They will look more like terrorist explosions than surgery because people don’t know the right answers. As a result, the public anger at getting raped again is not likely to have much helpful focus. People will be right to be angry — very right — but will they have any idea that size reduction is a big part of what really needs to happen? I think they will just be pushed by fear toward even greater globalization as the only answer big enough to save them.

Sadly, big is the problem.

So, back to my economic predictions

Anger may cause more nations to splinter off of Europe, but that depends on how messy Brexit becomes. If the dust settles in Europe in the next few months as it already has here in the US, other nations will be encouraged to break away. But I’m not so sure Europe will let the dust settle.

Right now banksters and politicians appear to be doing their best to kick the dust up into the air in order to terrorize everyone else into fear of breaking away and into giving their money to banksters. I think Europe will make the UK’s break as ugly of a divorce as possible in order to make all other nations afraid of doing the same thing — just as Germany did with Greece when Grexit was essentially being voted upon.

Whatever remains of Europe, you can be certain the central powers that be will use fear to tighten the reins of power. It may be a smaller Europe, but it will be even more centralized. Because of how trends are shaping up, I think we are about to repeat another devastating lesson from history: European power appears likely to become more Germanic, and that has never been a good thing.

For some reason that nation, more than any other, gravitates toward an obsessive-compulsive need to control Europe. Germany continually believes its ways are superior so that it SHOULD control Europe. While Germans may not be thinking of overt control, their thinking seems to run like this: “We must make them see that our ways are economically superior because then they will become as economically sound as we are,” Deutsche Bank notwithstanding.

Thus, Merkel and her German kommandants push Germanic discipline on the rest of Europe like they are force-feeding broccoli to a baby. In doing so they appear completely blind to how they are stoking the fires of enraged rebellion. (For example, Merkel never saw that force-feeding immigration would empower the Brexit vote.) Merkel has already aggregated European power around herself. Even though she doesn’t hold Europe’s most powerful position, she wields more influence over Europe than anyone as she marches them all to the German way.

Ironically, a single bank in that fiscally disciplined nation — Deutsche Bank — appears most likely to be the force that takes the entire European shambles goose-stepping over the cliff:

Today, we got the most definitive confirmation yet that the noose is tightening not only around Italy, but Germany itself … when none other than David Folkerts-Landau, the chief economist of Deutsche Bank, has called for a multi-billion dollar bailout for European banks. Speaking to Germany’s Welt am Sonntag, the economist said European institutions should get fresh capital for a recapitalization following a similar bailout in the US. What he didn’t say is that the US bailout took place nearly a decade ago. In the meantime Europe’s financial sector was supposed to be fixed courtesy of “prudent” fiscal and monetary policy. It wasn’t…. “Europe is seriously ill and needs to address very quickly the existing problems, or face an accident,” said the chief economist. (Zero Hedge)

Yes, the most likely bank to bust first appears to be German, and it is monstrous in size … as Italy more than eagerly pointed out. But that’s what happens when centralized power becomes too disconnected from its periphery because of size. It pushes stubbornly for what the center wants, causing something like Brexit to break off the outer edge. That, in turn causes other fractures that run right back to the center.

David Folkerts-Landau, the chief economist of Deutsche Bank joins French bank CEO Smaghi and Italian Premier Renzi is saying that a bank bailout has become so quickly urgent that Europe must break its new banking regulations to allow a bailout immediately, or the crash will begin. His conclusion does not seem very Germanic:

Strictly adhering to the rules would cause greater harm than if they were suspended.

Rules that Germany championed may have to be broken if they hurt Germany, instead of periphery states like Greece. Apparently, the dominatrix loves to crack the whip but not receive it. I anticipate Merkel will put the whip away now that it appears its sting could snap her own behind, but she may be too slow in giving up her own ideas.

It’s all part of the next leg down in the Epocalypse — first Brexit, then European banking stocks collapse, then some major European bank gives Europe its Lehman Brüders moment … and over the cliff they all go.

Deutsche Bank stock is now worth just 8% of its peak 2007 value. It’s already been a loooong ride downhill for one of Europe’s most iconic banks, but Brexit kicked DB in the crotch, because almost 20% of its revenues came from the UK, bringing its stock down to a groveling “crash value” now of $12.60 a share. One of the world’s largest and oldest banks looks ready to fall into the gaping abyss of the Epocalypse. No wonder European banksters are screaming “Bailout!”

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Shanghai, Black Swans, Etc

By Michael Kosares – Re-Blogged From http://www.Gold-Eagle.com

Real black swan is disaffection with status quo, not Brexit vote

“You say: ‘I did not think it would happen.’ Do you think there is anything that will not happen, when you know that it is possible to happen, when you see that it has already happened?” – Seneca, 62 AD

The Brexit vote has come and gone, but the after-shocks remain. A good many will look upon the event as a black swan, but by definition it is not. For an occasion to gain black swan status, it must be at the minimum (a) unforeseen, and (b) bring extreme consequences. Those are the two criteria originally advanced by economist Nicholas Taleb who coined the term. Brexit misses on both counts. Though a surprise to much of the public, it was foreseen by many including a number of hedge fund operators who placed significant bets on the outcome. As for the consequences, they were troubling but fall short of being extreme. In fact much of the result is still pending.

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Thank You, America!

By Christopher Monckton of Brenchley – Re-Blogged From http://www.WattsUpWithThat.com

head for the brexit

For my final broadcast to the nation on the eve of Britain’s Independence Day, the BBC asked me to imagine myself as one of the courtiers to whom Her Majesty had recently asked the question, “In one minute, give three reasons for your opinion on whether my United Kingdom should remain in or leave the European Union.”

My three reasons for departure, in strict order of precedence, were Democracy, Democracy, and Democracy. For the so-called “European Parliament” is no Parliament. It is a mere duma. It lacks even the power to bring forward a bill, and the 28 faceless, unelected, omnipotent Kommissars – the official German name for the shadowy Commissioners who exercise the supreme lawmaking power that was once vested in our elected Parliament – have the power, under the Treaty of Maastricht, to meet behind closed doors to override in secret any decision of that “Parliament” at will, and even to issue “Commission Regulations” that bypass it altogether.

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Brexit and the US

cropped-bob-shapiro.jpg   By Bob Shapiro

It’s official – UK voters have chosen to take themselves out of the European Community and to resume taking responsibility for their own economic fate.

Predictably, world markets, as well as the Pound and Euro, have reacted with irrational fear. I expect that it won’t be long before all these markets’ participants realize that the world hasn’t ended. At least a major part of today’s panic likely will be reversed, possibly as early as Monday.

The actual exit of the UK from the EC will take upwards of two years to become final. A lot can happen in that time. A lot of the UK’s potential benefit from Brexit can be negotiated away or legislated away.

The big benefit that I see is the hundreds of thousands of pages of EC regulations no longer applying – no longer impoverishing – the people of the UK. However, it is far from unlikely that some UK legislators are petrified at the prospects of the Freedom – they may try to legislatively protect their Economy from “suffering the full benefits.”

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Words Still Mean Things – BREXIT

By Andy Sutton & Graham Mehl – Re-Blogged From http://www.Gold-Eagle.com

Last time our article focused on what has come to be known as ‘escape velocity’ — and how an aeronautical term has come to be used to provide some boost to the perception of the US Economy, when in fact it actually has no velocity whatsoever. This week we’re going to take a look at another term, and even though it is an amalgam of two words, it still has profound meaning.

According to the media, it would appear that few in England actually know much about the idea of Brexit and what it means for them, their families, their country and their way of life. We surmise that even fewer Americans understand the ramifications it might have for the US.

Brexit, in short, stands for ‘Britain Exit’. Exit from what? Exit from the European Union. Britain is kind of an anomaly in many ways regarding its membership in the EU. For one, Britain still has its own currency, the Pound.  Britain also has some geographic separation from the EU as well — and is still a very strong banking hub, rivaling that of New York, Brussels and the BRICS Bank.

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Brexit: Does the UK Green Leader Fear the Return of British Democracy?

By Eric Worrall – Re-Blogged From http://www.WattsUpWithThat.com

British Green Party Leader Caroline Lucas has urged members to vote on 23rd June to remain part of the European Union. Her concern appears to be that if Britain leaves the EU, democratically elected British politicians might be emboldened to dismantle EU inspired environmental regulations.

Caroline Lucas has today called on Green voters to back remaining in the EU on June 23rd, declaring the imminent vote a “climate referendum”.

Lucas, who is a board member of Britain Stronger in Europe and Another Europe is Possible, as well as the Green Party’s only MP, warned a vote for Brexit would undermine efforts to tackle climate change and build a greener economy.

“June 23rd is a climate referendum,” she said. “Leaving the EU could wreck our chances of playing a part in the fight against this existential threat – and hand the country to people who don’t even believe climate change is happening. But by staying as a member of the EU we can build on the progress already made in Paris earlier this year and continue making strides towards a fossil-free future.”

She reiterated her view the EU is in need of sweeping reform, but insisted it remained the “best hope we have when it comes to tackling climate change and protecting our environment”.

The latest intervention came as the Green Party launched a new online video urging its supporters to back a Remain vote.

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Brexit, The Animated Movie

By Astute Angle – Re-Blogged From https://astuteangle.wordpress.com/

It is surely not irrelevant that for many left-wing Britons, ‘Europe’ exercises a grip on the imagination similar to that of the Soviet Union on the Philby generation at Cambridge in the 1930’s.  Nor is it illegitimate to seek a parallel between the apologias for the Soviet Union issued by the British intelligentsia in the 1920’s and 1930’s, and today’s wilful closing of intellectual eyes to the realities of ‘Europe’.  The left-wing fellow travellers of the 1930’s constantly made unfavourable comparisons between Britain and the supposed paradise to the east.  Today, the same is true of the British Euroenthusiasts.  The head of the Commission’s representative office in Britain, for instance, seems to view ceaseless denigration of his own country as the most effective way of selling ‘Europe’ to his fellow Britons.

Bernard Connolly, from The Rotten Heart of Europe  (1995), Introduction, p xvii

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Brexit Fears are Deliberately Overblown

By John Browne – Re-Blogged From Euro Pacific Capital

As the June 23rd BREXIT (the UK-wide referendum to leave the EU) vote draws near, the polls indicate a close result. Those urging a vote for the UK to remain inside the EU are suggesting increasingly dire economic consequences that would follow a YES vote by the British people to leave. Voices from London, Brussels, and Washington have all put immense pressure on British voters to bend to the will of the elites. To listen to their commentary, one would think that apocalypse was just around the corner. But is there any substance to their warnings?

The Pro-EU membership camp is led by Prime Minister David Cameron, supported by most of his cabinet, the Bank of England, the BBC and the massive support from the UK and EU governments that have funded enormous advertising campaigns against separation. Given this weight of their power, it is amazing how strong the support for a British exit (BREXIT) has remained.

When Britain first joined the European Economic Community (the precursor to the EU) in 1973, the primary motivation was the hopes of increasing British trade through participation in the world’s largest free-trade zone. However, the hope that the union would simply be a free-trading zone of sovereign countries has morphed into a drive for an EU superstate that has relentlessly pushed for greater regulations on businesses and people and greater control of local laws that have nothing to do with trade.

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T-TIP: Salvation or Trash-Tip?

By Alasdair Macleod – Re-Blogged From http://www.GoldMoney.com

President Obama weighed into the Brexit debate on his recent visit to the UK, saying that if Britain left the EU, she would be at the back of the queue when it comes to a free trade agreement.

If this was intended to scare voters into voting Remain, the tactic seems to have failed, with the subsequent swing in the polls favouring Brexit. However, this intervention has drawn widespread attention to the current trade negotiations between the US and the EU, known as T-TIP.

It stands for Transatlantic Trade and Investment Partnership, and is intended to be a free trade and investment agreement between the United States and the (currently) 28 member states of the EU. It makes eminent sense to have free trade between these two economic powers, which account for over 50% of world GDP. Both sides recognise the economic benefits, hardly surprising for America which experienced the disaster of the 1930 Smoot Hawley Tariff Act. It is a little surprising that the EU’s leaders, who genuinely dislike Anglo-Saxon concepts of free markets, and therefore the concepts behind free trade, also accept it will improve prospects for the EU economy.

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The “Other” 4G’s

By Bill Holter – Re-Blogged From http://www.Gold-Eagle.com

No, we’re not talking about 4G phones, nor God, Gold, Guns and Grub.  Today let’s look at GE, Greece, and finish with a very interesting Germany and Gazprom.  Last week GE shocked the market place by announcing they will sell their crown jewel GE Capital.  Why would they do this?  Isn’t GE capital their growth engine?  Isn’t it their cash cow?  What could they possibly be thinking?  In my opinion they are “thinking” correctly, maybe a bit too late though.

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