Connect with us

Economy

Ramifications Of Brexit: Economic And Political Consequences

Avatar

Published

on

Ramifications Of Brexit- Economic And Political Consequences

The big post-WW2 dream of the United States of Europe lies in ruins after the indecisive but binding 52% Brexit win.

This has not just affected the Britain and Europe’s fragile recovery from the 2008 market dump; it has wrecked it.

Just how temporary will this be if a save is possible at all?

It is certain to say that some emotion was involved in the pound performance directly after the results for the Brexit came in on Friday, June 24, 2016.

Foreign investors reacted predictably by having a “reject my country, refuse my money” attitude.

This can clearly be seen in the graph below which displays the steep fall of the pound against the Euro.

1

  • Some of the thoughts crossing the public’s mind currently are:
  • How is this affecting the political stage in Europe?
  • How will the Euro and pound recover?
  • Will this impact the slight optimism starting to be felt after 2008?

The British Public Want A Fall Guy

To address the issue of how this situation is impacting on the global political perceptions of Europe first.

The European Union was seen on the world stage as being a symbiotic entity that flourished in the main.

The key feature of one hand washing the other in an economic and political sense was ingrained in the public’s perception of the Europe machine.

It is glaringly obvious in reading the signs communicated by the vox pop that carried the Brexit leave a vote, which the British public were front runners in declaring themselves tired of immigrants and the country’s laws being decided outside the UK.

Many who were interviewed stated that this was their minuscule window of opportunity to voice their unhappiness.

These key issues were fixed on by the Leave party brigade and the fears and prejudices of those of a nationalistic bent were nurtured.

The burning question is whether Britain can survive its chosen isolation on the political landscape, or will its sovereignty cost it any chance of short to mid-term financial, economic recovery.

Who Is Bound For Recovery First?

Moving onto the second point – Now that the Euro and the pound have embarked on different paths, will the two separate currencies experience a sudden surge in the world markets?

As can be seen in the graph below, there are already signs that the panic and precipitous fall of the pound sterling in the markets against the dollar are already improving.

 

2

It is a safe bet to say that the fall of the Euro and GBP will resound on other markets.

Globally, confidence and trust in the markets have never really fully returned after the 2008 misstep.

The cautious pessimism that is being charted will possibly prevail and spread.

This move away from the mid ground snail crawl recovery from 2008 will continue the downturn.

It should not be forgotten, however, that Britain has always been the center of trade and commerce.

This is not likely to change as long as the banking hours of GMT stay so convenient for both eastern and western markets.

[ms_divider style=”normal” align=”left” width=”100%” margin_top=”30″ margin_bottom=”30″ border_size=”5″ border_color=”#f2f2f2″ icon=”” class=”” id=””][/ms_divider]

[ms_featurebox style=”4″ title_font_size=”18″ title_color=”#2b2b2b” icon_circle=”no” icon_size=”46″ title=”Recommended Link” icon=”” alignment=”left” icon_animation_type=”” icon_color=”” icon_background_color=”” icon_border_color=”” icon_border_width=”0″ flip_icon=”none” spinning_icon=”no” icon_image=”” icon_image_width=”0″ icon_image_height=”” link_url=”https://offers.thecapitalist.com/p/58-billion-stock-steal/index” link_target=”_blank” link_text=”Click Here To Find Out What It Is…” link_color=”#4885bf” content_color=”” content_box_background_color=”” class=”” id=””]This one stock is quietly earning 100s of percent in the gold bull market. It’s already up 294% [/ms_featurebox]

[ms_divider style=”normal” align=”left” width=”100%” margin_top=”30″ margin_bottom=”30″ border_size=”5″ border_color=”#f2f2f2″ icon=”” class=”” id=””][/ms_divider]

Encouragement Needed

Taking the lead from the world banks by sitting back and dispassionately seeing how events unfold it is confident that the Federal Bank will keep rates low for now.

Looking at the graph below it is easy to see that the Federal Bank has encouraged recovery by keeping the rates down since 2008.

3

Explaining the view of how Europe and Britain see each other is objective.

Each has considered one another essential and vital to financial and political viability for many decades.

If their policies will be divided and possibly in conflict remains to be seen.

It seems judicious at this point to remain optimistic.

Rivalries will not suddenly spring up after such a beneficial partnership.

It is the best interest of both parties to continue a financial arena that promotes the economies and politics of Europe and Britain.

The Body Politic

All depends on how the world will see a post-Brexit Britain and Europe.

Which country was the backbone of the other?

Which body structure is going to collapse or at least struggle to stand first?

Will the world see the two economies as spineless and helpless or will all efforts be made to build an exoskeleton to help them stand?

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Economy

STUDY: Number of Billionaires Doubles in Last Decade

Avatar

Published

on

Number of Billionaires Doubles in Last Decade
Image via Shutterstock

The number of billionaires has doubled in the past decade and the world’s wealthiest 2,153 people controlled more money than the poorest 4.6 billion combined last year, the charity Oxfam said Monday.

Meanwhile, unpaid or underpaid work by women and girls adds three times more to the world’s economy each year at least $10.8 trillion than the technology industry, the Nairobi-based charity said in its “Time to Care” report.

Women around the world work 12.5 billion hours combined each day without any pay or recognition, while the world’s 22 richest men have more wealth than all the women in Africa.

“It is important for us to underscore that the hidden engine of the economy that we see is really the unpaid care work of women. And that needs to change,” Amitabh Behar, CEO of Oxfam India, told Reuters.

“Our broken economies are lining the pockets of billionaires and big business at the expense of ordinary men and women. No wonder people are starting to question whether billionaires should even exist,” Behar said ahead of the annual World Economic Forum in Davos, where he will represent Oxfam beginning Tuesday.

“Women and girls are among those who benefit least from today’s economic system,” he added.

There will be at least 119 billionaires worth about $500 billion attending Davos this year, according to Bloomberg, with the highest contingents coming from the US, India and Russia.

“The very top of the economic pyramid sees trillions of dollars of wealth in the hands of a very small group of people, predominantly men,” the Oxfam report said.

“Their wealth is already extreme, and our broken economy concentrates more and more wealth into these few hands,” it said.

To highlight the inequality, Behar cited the case of a woman called Buchu Devi in India who spends up to 17 hours a day walking almost two miles to fetch water, cooking, preparing her kids for school and working in a poorly paid job.

“And on the one hand you see the billionaires who are all assembling at Davos with their personal planes, personal jets, super rich lifestyles,” he said.

“This Buchu Devi is not one person. I in India encounter these women on a daily basis, and this is the story across the world. We need to change this, and certainly end this billionaire boom.”

Behar said that to remedy the problem, governments should make sure above all that the rich pay their taxes, which should be used to pay for amenities such as clean water, health care and better schools.

“If you just look around the world, more than 30 countries are seeing protests. People are on the street and what are they saying? That they are not to accept this inequality, they are not going to live with these kind of conditions,” he said.

Source: New York Post
Vanguard News

(c) 2020 2019 Vanguard Media Limited, Nigeria Provided by SyndiGate Media Inc. (Syndigate.info).

Continue Reading

Automobiles

Pump Prices to Edge up After Attack on Iranian General, but Long-Term Effect Unclear

Editorial Staff

Published

on

By Jeff Ostrowski, The Palm Beach Post, Fla.

Motorists soon will see the effects of President Donald Trump’s decision to kill a prominent Iranian general. Whether pump prices rise a little or a lot depends on how quickly international tensions intensify.

Florida gas prices climbed an average of 7 cents a gallon in the past three days and could increase an additional 5 cents, AAA – The Auto Club Group said Monday.

The 7-cent increase was coming even before the U.S. air strike Thursday that killed Iranian Maj. Gen. Qassem Soleimani. That hike was a result of a rise in the price of crude oil in December.

News of the targeted killing of Soleimani sent crude oil surging nearly $2 per barrel on Friday. An increase of that magnitude typically translates to a 5-cent hike at the pump, AAA said.

The U.S. benchmark for crude oil traded Monday just above $63 per barrel, the highest level since May 2019. The price of oil makes up about half the price of a gallon of gas.

“What happens in the Middle East can have a direct impact on Americans’ daily lives by influencing what they pay at the pump,” said AAA spokesman Mark Jenkins. “Crude prices rise when there’s a threat of war, because of concerns over how the conflict could hamper supply and demand.”

Oil analyst Tom Kloza of energy firm OPIS agreed that pump prices in Florida likely will rise about 5 cents a gallon in the coming days.

“Then I have a hunch that things are going to calm down,” Kloza said Monday. “I don’t think we’re looking at $3 gas.”

The national average pump price Sunday was $2.585, while the Florida average was $2.526, AAA said.

Kloza expects only modest increases in part because of the timing of the attack. January is always a slow month for gas consumption in the United States.

There’s also the reality that sanctions leave Iran unable to export oil. Complicating the calculus is Iraq’s response to the U.S. attack. The drone strike on Soleimani took place in Baghdad, and some Iraqi politicians considered the assault an affront to Iraqi sovereignty.

While there’s no Iranian oil supply to be disrupted by a war, Iraq is an important producer.

Trump keenly watches oil prices and realizes that a price spike might erode his support in this year’s presidential election, Kloza said.

At the same time, Kloza added, “This president has proven to be unpredictable.”

Trump’s response has been typically uneven. Delivering an official statement at the Mar-a-Lago Club in Palm Beach, Trump’s tone was measured. He said the targeted killing was designed to pre-empt Soleimani’s planned attacks on American diplomats and soldiers.

“We took action last night to stop a war,” Trump said Friday. “We did not take action to start a war.”

However, over the weekend, Trump took to Twitter to threaten attacks on Iranian cultural sites.

“The United States just spent Two Trillion Dollars on Military Equipment,” Trump wrote Sunday on Twitter. “We are the biggest and by far the BEST in the World! If Iran attacks an American Base, or any American, we will be sending some of that brand new beautiful equipment their way…and without hesitation!”

##IFRAME_1##Iran has vowed vengeance, but military experts say the nation isn’t powerful enough to wage a direct war against the U.S.

“It’s still far too early to know how much of an impact this conflict will have overall on prices at the pump,” AAA’s Jenkins said.

Continue Reading

Economy

Stocks Rally Despite Impeachment News

Editorial Staff

Published

on

Stocks rose on Thursday as investors looked past the news of President Donald Trump’s impeachment as well as mixed U.S. economic data.

The Dow Jones Industrials advanced 53.85 points to begin trading at 28.293.13

The S&P 500 recovered 4.93 points to 3,196.07

The NASDAQ added 19.39 points to Wednesday’s all-time record, at 8,847.12.

The S&P 500 is up nearly 7% since House Speaker Nancy Pelosi launched a formal impeachment inquiry in September.

Cisco Systems was the best-performing Dow component, rising 1.6%. The consumer staples and real estate sectors led the S&P 500 higher, gaining 0.4% each. Micron Technology shares also contributed to Thursday’s move higher. Conagra shares surged more than 14% and were on pace for their biggest one-day gain since Oct. 16, 1989.

Micron shares climbed 3.5% on the back of strong quarterly results. The chipmaker posted earnings per share and revenue that topped analyst expectations.

On the economic data front, weekly jobless claims fell to 234,000 from 252,000 the week before. However, economists expected claims to fall to 225,000.

Meanwhile, the Philadelphia Federal Reserve’s business conditions index fell to 0.3 in December from 10.4 in the previous month. Economists expected the index to slip to 8.

The Democrat-led House of Representatives voted Wednesday to impeach Trump for abuse of power and obstruction of Congress. Trump became only the third president to be charged with high crimes and misdemeanors and will now face a trial in the Republican-controlled Senate.

Prices for the 10-Year U.S. Treasury were lower, raising yields to 1.94% from Wednesday’s 1.93%. Treasury prices and yields move in opposite directions.

Oil prices gained seven cents to $61.00 U.S. a barrel.

Gold prices moved forward $1.80 at $1,480.50 U.S. an ounce. Copyright © 2019 Baystreet.ca Media Corp. All rights reserved.

Continue Reading

Trending

Copyright © 2019 The Capitalist. his copyrighted material may not be republished without express permission. The information presented here is for general educational purposes only. MATERIAL CONNECTION DISCLOSURE: You should assume that this website has an affiliate relationship and/or another material connection to the persons or businesses mentioned in or linked to from this page and may receive commissions from purchases you make on subsequent web sites. You should not rely solely on information contained in this email to evaluate the product or service being endorsed. Always exercise due diligence before purchasing any product or service. This website contains advertisements.