This is beginning to get ridiculous. Britain is our most important ally. We have the deepest historical ties with the United Kingdom. Right now many people in the UK are fighting for their country’s very survival. They are seeking to maintain their sovereignty in the face of a European Union which is a bureaucratic and some would argue authoritarian institution. Brussels grows cronies like the cow pasture down the road from my house grows mushrooms. (And both the mushrooms and the EU politicians are full of the same thing.) The EU is a technocratic and often unrepresentative administrative empire and this empire wants to rope Britain in (permanently) to take the country down a peg.
Who is better off on average (In terms of per capita GDP)? The people who live in Belgium or the people who live in New Mexico?
The big guys are giving us plenty of signals. In the event the world as a whole moves to negative rates we won’t be able to say that we hadn’t been warned. We’ve been warned.
The EU is an experiment which is in deep crisis. An onslaught of refugees which is forcing countries within the European Union members to deal with the flow on an ad hoc basis instead of as a federation, the continuing economic struggles in much of the “periphery” of the continent, and the real possibility of the UK leaving the Union have called the future of Europe into question.
Repeat after me. Must save banks again. Must save banks again. So what if it crushes the middle class even more? Must save banks again.
Sure, “European banks.” All banks.
People in America are just plugging along seemingly oblivious to the storm which continues to gather strength overseas and in some cases is already buffeting the United States. It is foolhardy. We have just gotten used to the new post-2008 lower standards of living in this country and we want to think that the global depression which started in 2007-2008 is all over. It’s not.
Will the world go to hell in a hand basket tomorrow?
JP Morgan and Goldman Sachs want Britain to stay within the European Union and they are spending money to make sure the UK stays. Surprise.
An excellent piece of history here. Sweden became an economic leader because of its long commitment to liberal markets and free trade. The wealth created from this free market situation (more free market than the US at the time according to the author) was then taken for granted and many believed that this wealth could be used to finance a cradle to grave welfare state. Turns out wealth needs to be generated on an ongoing basis and regulating commerce into oblivion is not a prescription for long term prosperity.
Big surprise that the NPR coverage of this story this morning emphasized the European Union’s supposed commitment to “the rule of law.” The backward Poles we were to understand were the ones in the wrong, and now Brussels (really Berlin) had to deal with the Warsaw yokels.
I had the pleasure of meeting Mr. Farage this past summer in Washington. I found him to be as passionate, straight forward, self effacing, and as generally good natured as his “official” persona. Not always a given with politicians. He called for the UK’s exit from the European Union. He emphasized the importance for the United States that Britain reassert its sovereignty and the need for the UK to look to the US not across the Channel. He warned of a federal Europe dominated by Germany.
As we’ve said before, we live in fascinating economic times. (Not always the most fun though.)
This should be interesting. It is widely thought that the Federal Reserve will move to raise rates a bit this month. Meanwhile Canada, our largest trading partner appears to be moving in the opposite direction. (Along with Europe.)
Of course it does. It’s not that the entire population (nearly) of France is unarmed that’s the issue. It’s not that Western leaders have facilitated a war in Syria which started as a pi–ing match between Russia and the USA over oil/gas transport corridors and then looked the other way while a stream of “refugees” from that war marched into Europe. (Seriously, if you were an ISIS commander, don’t you think you’d have your people marching along with the legitimate refugees?) No,
It seems the emissions scandal which started with Volkswagen now extends to many other car manufacturers, though it does not appear that these manufacturers had “defeat devices” like the VWs.
Some believe that this just shows why it is that there must be an even larger regulatory regime. That throwing more money at the issue, and by hiring more regulators, etc. will solve the problem. It won’t. The problem here is that car makers and regulators were essentially both in on the deal.
And is the US government really finding out about it for the first time?
Dun dun dun…