Thursday 30 June 2016

Brexit Strategy.

I don't know if anyone's mentioned this but on June 23rd (23/6/16) Britain voted to exit the European Union (EU) - The Brexit.

The day before the vote I said that this result would lead to one of the longest and most complicated political negotiations the World has ever seen. It appears that Britain has now decided on the strategy it is going to pursue during those negotiations.

Unfortunately that strategy seems to have been drawn up in that 30 minute meeting between the Prime Minister David Cameron and the Queen on the morning after the vote (24/6/16). When nobody had slept and everyone was still slightly in shock. As a result it seems rather militant.

As I also said the day before the vote there is nothing that stockmarkets and the business world in general hates more than uncertainty. It is for this reason that Britain seems to have made uncertainty the central plank of its negotiating strategy.

So for example we have this rather strange situation where Prime Minister Cameron has resigned but won't actually be leaving post until September. This a triggered a drawn out leadership contest in a Conservative Party that is bitterly divided between members who supported the Leave campaign and members who supported the Remain campaign.

When we get to September and a new Conservative Party leader has been chosen there is then the question of whether they will automatically become Prime Minister or whether a divided nation demands that a General Election needs to be held.

If there is to be a General Election the next becomes will the opposition Labour Party be in any position to fight it.

On Monday (27/6/16) almost the entire shadow cabinet resigned in order to put pressure on Labour leader Jeremy Corbyn to resign triggering a Labour leadership contest. A new shadow cabinet was appointed on Tuesday (28/6/16) but on Wednesday (29/6/16) the first new appointee resigned in protest.

Today Labour MP Angela Eagle was supposed to announce that she was going to formally challenge Corbyn for the leadership triggering a contest. However she seems to have changed her mind at the last minute and is putting off that announcement at least until tomorrow.

Then of course there is the question of the UK regions - England, Scotland, Wales and Northern Ireland.

On Saturday (25/6/16) the leader of the Scottish National Party (SNP) and First Minister in the regional Scottish (sub) Parliament Nicola Sturgeon announced that she intends to hold a referendum on Scottish Independence to allow Scotland to join the EU separately from Britain.

On Sturgeon's claim that Scotland voted to remain part of the EU that is entirely false.

This was a national referendum where every vote was counted regardless of where it was cast. So Scotland didn't vote to send a Remain delegate or Electoral College vote to the national count. In fact with more than 1 million Scots voting the Leave and the winning margin being roughly 1 million votes you could argue that actually Scotland voted to take Britain out of the EU.

When Sturgeon made her announcement on Saturday she was speaking only for herself and the SNP.

However on Sunday (26/6/16) the "Tsunami" rollercoaster at the M&D Amusement Park in Scotland crashed dramatically. The Eagle logo used on every single car of that rollercoaster looks suspiciously close to the Eagle logo used by the Egypt Air airline. This was the apparatus of the British state throwing its weight behind Scotland. Not to create an independent Scotland but to create uncertainty around the issue.

You will notice that no-one has been quite so keen to create that level of uncertainty around Northern Ireland's future.

That's because with the nation of Ireland only being partitioned less than 100 years ago Northern Ireland could very easily vote to return to being part of the Republic of Ireland and thus remain a member of the EU. I'm not saying they will do it or that they should do it. Just that if they decided to do it the mechanics of it would be relatively easy.

Then of course there is the issue of when Britain is going to invoke Article 50 of the Lisbon treaty formally starting the process of leaving the EU. The current joke being; "Are we invoking Article 50? Well, Theresa May." Incidentally don't get "Theresa May" and "Teresa May" muddled up. Particularly if you are at work.

The reason why the UK is trying to create all this uncertainty is because it wants to drive the global and the certainly the European economy into recession. The thinking being that this will strengthen Britain's position in negotiations with the EU.

Presiding over an economy in recession is extremely stressful for any political leader. However it will be particularly stressful for Eurozone leaders.

That's because quite apart from the ongoing economic carnage in Greece a number of other Eurozone economies such as Spain, Portugal, Italy and the Republic of Ireland are not exactly what you would term strong. Even France which along with Germany is likely to be expected to fill the gap in the EU budget left by Britain's exit spends most of its time between low growth and no growth.

As such the calculation is that if the Eurozone economy is in crisis then the EU is less likely to make that crisis worse by taking a tough line with the UK.

However the UK has more specific targets in mind - Elections in the Netherlands, France and Germany.

In May of 2017 France will be holding its Presidential election. It is widely accepted that the incumbent Francois Hollande will not be winning the election. It is even rumoured that his Socialist Party is going to force him to go through the primary procedure in an effort to stop him being their candidate.

The UK's hope is that a global economic collapse will help the fascist Front National/National Front (FN) will come to power in France. They too want to hold a referendum on leaving the EU. Therefore Britain's calculation is that the French FN will fight to give the UK very favourable Brexit terms in order to generate support for a French exit.

Even if the FN don't win there are still enough Eurosceptics in the centre-right Republican Party that a strong FN showing will allow them to give the UK favourable terms.

Before the French Presidential election there is a General Election in the Netherlands in March 2017. Amid a global financial collapse the equally fascist Dutch Party of Freedom (PVV) could win this election.

Like the FN in France they too want to hold a referendum on leaving the EU so would be prepared to give the UK extremely favourable Brexit terms to further their own cause. Even if they don't win an outright majority even as a minority coalition partner with a centre-right party the PVV would certainly exert pressure in the UK's favour.

In October 2017 Germany will hold its General Election. Although a global financial collapse coupled with an actual invasion by the Islamic State of Iraq and the Levant (ISIL) would not be enough for the far-right Alternative for Germany/Deutschland (AfD) to seize power Germany very much functions on the principle of coalition governments.

Therefore even a reasonable showing by the AfD would prevent Germany taking a hardline on Brexit. Particularly if that involved standing up to a French FN government and a PVV government in the Netherlands.

However the global financial markets seem to have already seen through the UK's "Hooligan Strategy."

So when the British stockmarket opened on Monday (27/6/16) two British banks - Barclays and Royal Bank of Scotland (RBS) - took an absolute thumping. So much so that trading in their shares had to be suspended to stop the businesses being driven into collapse.

Barclays is Britain's dirty bank. So if British intelligence need someone to subvert international sanctions of fund a "The Night Manager" style dodgy arms deal it will be Barclays who do it. The majority of RBS shares are owned by the British government making Britain's Chief Finance Minister (Chancellor) George Osborne its main shareholder.

As a result the losses by Barclays and RBS were not the result of some post-Brexit panic. Instead they were specifically targeted to send the message that if the UK tries trigger a global financial collapse as part of the negotiations then the UK will come off worst.

Later in the day the ratings agency Standard & Poors (S&P) cut the UK's credit rating from AAA to AA. Although independent S&P are on good terms with the US establishment. As such this was the US sending the message that it will not be assisting the UK in its efforts to engineer a global financial collapse. After all they've got Poland and Shamali Province to think about.

On Tuesday (28/6/16) Prime Minister Cameron attended the first day of the EU Council (EUCO) summit to discuss the Brexit vote and attempt to start informal negotiations prior to the invocation of Article 50. Sadly the UK did not get the message from the markets and attempted to continue its hooligan strategy.

So early on Tuesday morning the area around Saint Paul's Cathedral was evacuated following the discovery of a "suspect package." This both highlighted the UK's financial capital - the City of London - and that it is separate from the Greater London area that Sadiq Khan claims to be Mayor of. I hope the term; "Khanistan" sticks.

Later in the day another "suspect package" was discovered on Westminster Bridge forcing a similar evacuation. Westminster Bridge is of course right outside the Palace of Westminster aka; The Houses of Parliament.

On Tuesday evening there was a protest outside the Palace of Westminster called "London Stays." The protesters thought they were calling for Khanistan to stay as part of the EU. What they were actually doing was trying to informally negotiate the City of London remaining the European financial capital post-Brexit.

All through the day the Conservative Party were constantly issuing conflicting statements about when they would hold their leadership election.

Throughout this the EU made clear that it would be standing firm and would not be holding informal negotiations until the UK formally invokes Article 50.

With it being clear that the World will be taking Britain's hooligan strategy in its stride calm returned to the markets yesterday. The London FTSE 100 is now actually at higher levels than it was when the referendum was announced in February 2016 while the US Dow Jones was up 200 points.

Therefore it wasn't a "Brexit Crash" it was a "Oh My God. The UK's Going to do Something Very Stupid Crash."

You will notice how Britain's very pro-Remain media has suddenly stopped reporting on the financial markets.

Sadly with the search for the missing children on Wales' Brecon Beacons yesterday the UK doesn't seem to have fully got the message yet.

However today's announcement that Boris Johnson won't be standing for leader of the Conservative Party seems like a step in the right direction.

After all Boris is the sort of person who would forget where he'd parked the country during negotiations.

17:30 on 30/6/16 (UK date).









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