UK pound falls to fresh 2.5-year low against Singdollar as 'Brexit' fears persist

updates

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Key points

• Boris Johnson pulls out of the race for Tory party leadership
  
  
• Michael Gove launches surprise run
  
  
• May, Leadsom, Fox and Crabb all launch candidacy
  
  
• Sterling is a touch weaker this morning at $1.34, stocks mixed
  
  
• Jeremy Corbyn expected to face leadership challenge later today
  
  
• Bank of England governor Mark Carney to speak at 4pm
  

Reminds me of this movie "underworld rise of the lycans". 

In it the werewolves were the lycans potrayed as the muscle brute strength - the slaves  

and the blood suckers .. er vampires - the elites.   





source: http://foreignpolicy.com/2016/06/28/its-...16-brexit/

It’s Time for the Elites to Rise Up Against the Ignorant Masses

The Brexit has laid bare the political schism of our time. It’s not about the left vs. the right; it’s about the sane vs. the mindlessly angry.

In the late 1960s, elites were in disarray, as they are now — but back then they were fleeing from kids rebelling against their parents’ world; now the elites are fleeing from the parents. Extremism has gone mainstream. One of the most brazen features of the Brexit vote was the utter repudiation of the bankers and economists and Western heads of state who warned voters against the dangers of a split with the European Union. British Prime Minister David Cameron thought that voters would defer to the near-universal opinion of experts; that only shows how utterly he misjudged his own people.

(30-06-2016, 06:51 PM)thor666 Wrote:

(30-06-2016, 02:59 PM)specuvestor Wrote: ^^Scotland is a state but not a sovereign state. For example States in US is different from provinces in China. UN or EU will not discuss directly with Scotland until it has independence

That's something new.. Didn't know that a defintion of country could possibly have less "power" than a state. Thank u for correcting.

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Interesting highlight that Scotland is deemed as a country not as per the usual use of the word country which means sovereign state. It seems that only scotland, Northern Ireland, Wales and England use the term country to describe what is effectively a state. Thank you that I learn something but then again UK also unique that it doesn't have a constitution. 

Usually a country is understood as a sovereign state recognized by UN or at times the major powers. That's why taiwan keep giving overseas favor to poorer nations to be recognized, and then set up diplomatic relationship which implies sovereign state to state relationship. Countries have to be recognized which was what happened to East Timor and breakup of USSR

Johor is a state. That's why some time back they threatened to leave the federation. Singapore was a state in the Federation of Malaysia in 1963. The autonomous regions or Special Admin Region in China is not even a state. It is actually quite well defined by ability on internal autonomy, external control like military and diplomacy, ability to legislate etc.

That's where it becomes fuzzy with EU. it was meant to be economic union but post Berlin Wall, it became political to absorb Eastern Europe. Labor mobility which was an economical necessity has become political. Sovereignty becoming an issue

According to sun.co.uk there are now calls for 34 different referendums.

As I said earlier Britain leaving their contribution will need to be spread among 27 members and as predicted they now starting to push and act blur. 

German Federal Elections next year 2017 October Merkel will be under enormous pressure. I think to keep it together they going to have to cut deals with the Brits.

http://www.dw.com/en/conservative-german...a-19368374

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Conservative German politicians consider Berlin's best Brexit approach

Savings, not more money from Germany, should make up the EU budget gap after the UK leaves the bloc, Bavaria's finance minister said. Former Chancellor Kohl added that Brussels needs to pause before talks with London.

Bavarian Finance Minister Markus Söder said it is "difficult to quantify" how much the UK's exit from the EU - commonly referred to as Brexit - will cost Germany, but warned that Berlin should not be expected to bare the brunt of the UK's missing contributions.

"We're talking about a billion in additional contributions that may fall upon us. We Germans must ensure that after the Brexit, the British contributions up to now do not fall on Germany and other net contributor countries," Söder told the German newspaper "Die Welt" on Thursday.

They will just print more to cover the shortfall. No way they will pay themselves lesser, work harder or longer.

(01-07-2016, 07:31 AM)corydorus Wrote: They will just print more to cover the shortfall. No way they will pay themselves lesser, work harder or longer.

It seems ECB has run out of assets to buy for qe and have lowered the bar to buy even lower quality assets which is now hitting the euro.

They are in a bit of trouble now, kicking the can down the road, but seems the road is at an end.



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For the past QE, central banks have been printing money and buying assets. It makes me question when will central banks offload such assets back?

IMO, I don think it is likely to happen in the near term as many countries will be too weak to face a pull back in liquidity; that brings me to another question, what is going to happen to these assets, my closest guess is just a write off.

"Sitting on the fence Boris Johnson" is out, now Gove who supports BREXIT is up and coming. 


Brexit Means Brexit: Johnson’s Fall Reduces Room for EU-Turn

Today’s events signal that, for now, the Conservative government is determined to take the U.K. out of the EU with Home Secretary Theresa May and Justice Secretary Michael Gove the clear front-runners. While May had campaigned for Remain, she told supporters and reporters in London today that “Brexit means Brexit.” Gove has been one of the most ardent supporters of ‘Leave’ through the referendum campaign.

"One of the most brazen features of the Brexit vote was the utter repudiation of the bankers and economists and Western heads of state who warned voters against the dangers ..."


Since 2008, lots of people who were deemed experts in the field of economics, policies, etc have predicted doom, collapse and market mayhem. It would be like going back to depression years of 1930s.

Its been 8 years since.

Markets chugg along just fine.
Grexit came and went with no mayhem.
China was supossed to have a hard landing.. and no one knows if its soft or hard as it seems its still "landing"
USA has not imploded.

The general, retail, common folks dont see the doom that was predicted by experts.
They dont believe it.

But they do see the wealth being flaunted around:
Expensive property prices
Expensive cars
Expensive new phones
Expensive restaurants

We live in an age where experiential learning is ultimate.