November 5th has come and gone- so too the bonfire-bashing stories of Guy Fawkes that go along with that date. But one date remains before us, where playing with fire is about to burn the hand that reached out. That date is March 29, 2019. The Brexit negotiations where a sham: Britain was never going to get a fair deal, as politicians were involved; the EU was never motivated to help anyone other than themselves. In the US we call that, America First and get pilloried for it. Frances Macron let the cat out of the bag when he said that the backstop would be leveraged to get advantages over Britain.
The terms of the deal are a travesty. Britain is neither in or out of the EU and there is no clear plan how it ever will be. A clean break with fair trade rules was never possible. Many politicians avoid rational arguments; they seek advantage for their own position, not fairness. Fair trade and zero tariffs without freedom of movement, though logical and reasonable, was never possible: The French want to protect their farmers; Italy their factory workers, and Spain its fisheries. Competition and openness has been corrupted for years. Why is the EU anything different? See The Crisis of Good Intentions in this week’s US print edition of the Wall Street Journal.
Elsewhere in that newspaper is another article that highlights how the politicians in Brussels are close to ignoring a fire for which they have little awareness. ‘Finance Area Must Make Key Brexit Choices Now’ explains how certain financial transaction take three months to complete. The March 29 date when Britain leaves the EU is nearly 3 months away, yet the methods to assure safe passage for such derivative transactions remain in limbo.
Most of will never use or know what these $66 trillion of swaps and futures transactions actually do. Financiers do and will soon be in the front page of finance rags when they have to explain to their masters why costs are ballooning and finances settlements grinds to a halt. London is still an important central hub for a range of these transactions that are specialized; and aspects of global trade market operations. The EU, in their political stubbornness, are about to uncork a bottle of pandora; or they will light a fuse that will burn and brightly, very soon.
For the love of Pete, can Britain just get out from under the manifolds of madness and can we work an honest days effort without political oversight?