Taking a page from Donald Trump’s book, Boris Johnson and his political consigliori Dominic Cummings have branded their opposition’s Brexit strategy “surrender.” It is brilliant labeling. From Mish Shedlock at moneymaven.io:
Boris Johnson labels the acts of Parliament to stop No Deal a “Surrender Act”.
This is correct, of course.
If you take away the EU’s incentives to negotiate, they are less likely to do so.
It’s not a complete white flag as Johnson has other, albeit undisclosed options, in which he proclaims two seemingly contradictory ideas.
- He will abide by the Benn legislation seeking an extension
- He will not ask for an extension
The British people are getting the EU jammed down their throats and hang their vote to leave it. From Tom Luongo at strategic-culture.org:
Brexit and UK Prime Minister Boris Johnson suffered yet another setback after the Supreme Court ruled his proroguing of Parliament illegal. I’m no British legal scholar, and I certainly don’t want to be, but from what I understand the arguments used seem incredibly dangerous.
In effect, the plaintiffs argued that if the Prime Minister can suspend Parliament for any length of time, say three days, it would be legally no different then him suspending Parliament for a year or, even, indefinitely.
That’s a dangerous line of argument given the more than 300+ year history of this process, with the Prime Minister proroguing Parliament under far more dubious conditions in the past. This does limit the role of the Government to conduct business and set the agenda, especially if and when the day comes that Parliament is not staffed by people who are loyal to their constituents and not the political elite.
The new government in Italian is throwing open the gates for immigrants. From Soeren Kern at gatestoneinstitute.org:
- During just the past several weeks, the number of migrant arrivals to Italy has increased incrementally…. Many of the new arrivals are reaching Italy by using new people-smuggling routes that originate in Turkey.
- The interior ministers from France, Germany, Italy and Malta met on September 23 in the Maltese capital, Valletta, where they agreed to a tentative proposal for shipwrecked migrants to be “voluntarily redistributed” throughout the European Union…. Similar proposals have failed in the past and there is no reason to believe this one will be different, largely because the concept of European solidarity is a myth. So far only six EU states have agreed to migrant redistribution: France, Germany, Greece, Italy, Malta and Spain.
- NGOs such as Open Arms claim to be playing an invaluable humanitarian role in saving the lives of refugees and asylum seekers fleeing war and oppression in their home countries. Statistics show something else entirely.
The slithering reptilians that populate the British government will go to any lengths to stop or neuter Brexit. From Tom Luongo at tomluongo.me:
I told you the other day that there was a coup underway by the elites I call The Davos Crowd. It started with the British Supreme Court overturning centuries of the balance of powers and ended with the Democrats in Congress announcing impeachment proceedings against President Trump.
When the decision came down from the Supreme Court I began my weekly article for Strategic Culture Foundation. They published it today. In that piece I outline what the dynamics are and what the options were for both sides of the Brexit conundrum.
Some might argue that democracy where only approved outcomes are allowed isn’t really democracy. From Ryan McMaken at mises.org:
The United Kingdom’s Supreme Court ruled “illegal” a parliamentary tactic used by PM Boris Johnson to ensure Brexit would be carried out on October 31, more than six months after Brexit was supposed to take effect.
While the court wasn’t ruling on Brexit, per se, the context of the situation makes it clear the ruling is really just the latest move from the UK’s political class designed to postpone Brexit yet again.
Given the history of EU-related referenda in Europe, we can already guess how the situation will play out. British voters will either be asked to vote again on Brexit — so that this time, they can get it “right” — or the Brexit agreement will be constructed in such a way that Brexit will be a British exit in name only.
Mario Draghi is all-in on wacko monetary nostrums—like negative interest rates—that haven’t worked in either Europe or Japan. From Tom Luongo at tomluongo.me:
Last year I asked whether Turkey would be “City Zero in Global Contagion.” That question was based on the crisis unfolding in the Turkish lira which materially threatened a number of major European banks, especially those in Italy.
This week highlighted something really interesting for me that, I think, sets in motion a similar thesis about Turkey but for much different reasons. The sovereign debt crisis will come about purely because of a failure of confidence in institutions.
Competence is the key to staying at the top of human dominance hierarchies, not force. Those built on competence tend to last and those built on force are, at best, meta-stable for a specific period of time.
The difference between what’s happening in Turkey with President Erdogan taking control of the Turkish central bank and the end of Mario Draghi’s term heading the ECB cuts to the heart of this issue of competence versus force.
Posted in banking, Business, Debt, Financial markets, Geopolitics, Governments, Politics
Tagged ECB, Erdogan, EU, Mario Draghi, Turkey
What happens in Italy is important because the country has a lot of debt and a tottering banking system. From Tom Luongo at strategic-culture.org:
Italian leader Matteo Salvini is in the headlines again, now openly threatening divorce with his coalition partner, Five Star Movement (M5S).
Salvini unleashed another round of rhetorical bombs at M5S to get on them board with his part of the agenda. But that seems to have failed and he is now prepared to go to Parliament and withdraw his party, Lega, from the coalition government which will lead to new elections.
He had put off any kind of talk of new elections in the past because the opinion polling wasn’t strong enough to grant Lega the kind of majority it needed to govern without strings.
The coalition is dead but it may not matter.
The biggest problem Salvini faced, however, wasn’t M5S’s internal strife and contradictions. His biggest obstacle lies in the Troika of Technocrats that hold all the real power in Italy as it pertains to the European Union.
That Troika is President Sergei Mattarella, Prime Minister Giuseppe Conte and Finance Minister Giovanni Tria and they are the problem, as I wrote back in June.
Prime Minister Giuseppe Conti and Economy Minister Giovanni Tria are in open revolt against the coalition leaders over the upcoming budget fight with the EU.
Reuters is reporting this morning that these two are working together to undermine the internal reforms Salvini is proposing to spur economic growth from the ground up by instituting a flat tax and spending a whopping $3 billion more than Brussels wants them to on rebuilding crumbling Italian infrastructure.