Union-Jacked! UK leaves the EU! Pound is taking a pounding!

[tarheel0910]

The UK leaving. The financial ramifications are of interest to me. I know our currency is backed by monetized debt. We do, however, have the edge in that all of the oil in the Middle East is initially traded in US Dollars. That helps maintain the US Dollar as the reserve currency. We- the US citizenry and it's government- doesn't have direct control over it's own currency. The FED controls it. I just wonder if the UK can actually survive this. And, I wonder what kind of effect it will have globally. If they all break-off and go their separate ways, it's going to shake-up the scene everywhere. In some ways, I'd like to see the States here break-away and be their own countries. But, I don't think it's feasible for lots of reasons.

Its hard to know for sure what the effect will be right now. It will take a couple of years to complete the exit and the financial/trade terms will have to be negotiated. The UK is important to the rest of the EU, so I suspect the terms will be very friendly. The main reason this happened is not financial issues, it is social issues in my opinion. Specifically immigration. By exiting the EU they can make their own laws.

 

[strummingram]

Its hard to know for sure what the effect will be right now. It will take a couple of years to complete the exit and the financial/trade terms will have to be negotiated. The UK is important to the rest of the EU, so I suspect the terms will be very friendly. The main reason this happened is not financial issues, it is social issues in my opinion. Specifically immigration. By exiting the EU they can make their own laws.

I know, I know.

 

[Louigi]

The UK is important to the rest of the EU, so I suspect the terms will be very friendly

I initially thought this too, but it appears the folks in Brussels are butt hurt and will act like children. IT is not starting out well.

European Union governments have piled pressure on the UK to leave the bloc quickly, saying talks on the UK’s exit must begin soon and and urging a new British prime minister to take office quickly.

As Europe scrambled on Saturday to respond to the momentous Brexit vote, foreign ministers from the EU’s six founding members states meeting in emergency session in Berlin demanded the earliest possible start to the Brexit process.

France’s foreign minister, Jean-Marc Ayrault, said Britain “must trigger” article 50– the procedure for leaving the EU, adding that it was urgent Cameron step aside for a new leader to manage the transition out of the union. “A new prime minister must be designated, that will take a few days,” he said.

It would “not be respectful” for Britain to delay the process, Ayrault added. “It’s a question of respect.” On Friday, Cameron said he would delay the start of Brexit negotiations until his successor as prime minister was in place in the autumn.

The German foreign minister, Frank-Walter Steinmeier, who convened the talks, said the six European foreign ministers “join together in saying that this process must begin as soon as possible, so we don’t end up in an extended limbo period but rather can focus on the future of Europe and work towards it”.

There is “a certain urgency”, Ayrault added after the meeting with his counterparts from Germany, Belgium, the Netherlands, Italy and Luxembourg, warning of “financial consequences, political consequences”.

Steinmeier said Cameron had a “responsibility beyond the UK” to initiative formal steps for Britain’s exit and “give us a chance to engage with the European Union’s future ... We call on Britain to trigger article 50 as soon as possible so we don’t get stuck in a deadlocked situation,” he told a press conference outside the German foreign ministry guest house on the outskirts of Berlin.

Luxembourg’s foreign minister, Jean Asselborn, said waiting for Cameron’s successor to trigger article 50 in October could mean that the four months turned into “a period of insecurity ... I hope we won’t get into a cat and mouse game over this – that would neither be fitting for Britain nor the European Union.”

“We have to turn the page, we don’t want to create a vacuum,” said the Dutch foreign minister, Bert Koenders. “It won’t be business as usual.”

 

[HeelFan58]

I think the real crash is still ahead of us. You just cannot keep propping up the economy with fed measures forever. The U.S. is 18+trillion in debt and consumer debt is another 12 trillion while labor force participation is at the lowest point since the 70's. Something has to give.

 

[Louigi]

I think the real crash is still ahead of us. You just cannot keep propping up the economy with fed measures forever. The U.S. is 18+trillion in debt and consumer debt is another 12 trillion while labor force participation is at the lowest point since the 70's. Something has to give.

A future real crash, yes, but cause of such crash and timing is impossible to predict. Below is out debt/GDP. A better analysis than just total debt. For example if you had a mortgage of $120K and house worth $100K, not good. If house was worth $500K, more manageable.

Our peak debt was in WWII, but our economic output after the war grew our economy. We survived it and can do it again without a "real crash".

The long term impact of Fed measures will not be known for many years, but they do not create debt. The congress does that. The Fed has had to act with extreme monetary policy because this administration and congress has done nothing to help the economy and create jobs through Fiscal policy. "Porkulus" was their last attempt, and it was a fraud and disaster. "Shovel ready, was not so shovel ready, was it", Barak Obama

Low labor participation is a real problem, but demographic shift has a major influence on that (baby boomers).

 

[HeelFan58]

A future real crash, yes, but cause of such crash and timing is impossible to predict. Below is out debt/GDP. A better analysis than just total debt. For example if you had a mortgage of $120K and house worth $100K, not good. If house was worth $500K, more manageable.

Our peak debt was in WWII, but our economic output after the war grew our economy. We survived it and can do it again without a "real crash".

The long term impact of Fed measures will not be known for many years, but they do not create debt. The congress does that. The Fed has had to act with extreme monetary policy because this administration and congress has done nothing to help the economy and create jobs through Fiscal policy. "Porkulus" was their last attempt, and it was a fraud and disaster. "Shovel ready, was not so shovel ready, was it", Barak Obama

Low labor participation is a real problem, but demographic shift has a major influence on that (baby boomers).

Yeah the debt was caused by the war and unemployment was high when the G.I.'s got home , but it was just a matter of time before job growth and the economy soared with all the pent up demand cause by war rationing. We are approaching the 1945 level again with no pent up demand to make things right.

 

[strummingram]

Apparently there is talk of Scotland opting-out of the UK.

 

[HeelFan58]

Apparently there is talk of Scotland opting-out of the UK.

You do know they already voted and opted to stay.

http://www.nbcnews.com/storyline/br...ependence-again-after-u-k-brexit-vote-n598166

 

[prlyles]

Yeah the debt was caused by the war and unemployment was high when the G.I.'s got home , but it was just a matter of time before job growth and the economy soared with all the pent up demand cause by war rationing. We are approaching the 1945 level again with no pent up demand to make things right.

The pent up demand was worldwide. We soared because our manufacturing infrastructure was intact whereas most other country's manufacturing had been destroyed in the war.

 

[Raising Heel]

The pent up demand was worldwide. We soared because our manufacturing infrastructure was intact whereas most other country's manufacturing had been destroyed in the war.

So it sounds like the best solution is for the U.S. to start bombing the shit out of Europe again.

(Sorry, I obviously have nothing to contribute to this thread.)

 

[prlyles]

So it sounds like the best solution is for the U.S. to start bombing the shit out of Europe again.

(Sorry, I obviously have nothing to contribute to this thread.)

I wouldn't say you have nothing but "bombing the shit out of Europe" is close to nothing..just kidding...lol

 

[BlueKicks]

Did you vote, BK?

I voted to remain, as did the rest of my family.

It's amazing how many people have been on TV over the last few days saying "I voted leave, but I regret it now".

I don't think people realised what they bargained for.

 

[UNC71-00]

I voted to remain, as did the rest of my family.

It's amazing how many people have been on TV over the last few days saying "I voted leave, but I regret it now".

I don't think people realised what they bargained for.

Yeah, the media always rounds up those people when they are trying to make a point.

The EU has never had long term viability. If UK had stayed, something else would have come along in relatively short order to start the dissolution.

 

[HeelFan58]

I wouldn't say you have nothing but "bombing the shit out of Europe" is close to nothing..just kidding...lol

Yeah, the media always rounds up those people when they are trying to make a point.

The EU has never had long term viability. If UK had stayed, something else would have come along in relatively short order to start the dissolution.

Yup the media interviews only the people that fit their (lib) narrative.

 

[tarheel0910]

(Sorry, I obviously have nothing to contribute to any thread.)

FIFY

 

[Raising Heel]

FIFY

Almost 30,000 poasts and somebody finally got the balls to say it.