Eyes on Yellen for rate-hike signals after payroll data shocks | Reuters

Reuters reports that investors will be looking for signals from Federal Reserve chair Janet Yellen this week about the U.S. central bank‘s next rate move after shockingly weak payroll data all but killed off chances for a hike this month. However, the article cautions that the focus will also not stray far from developments in Britain as voters there prepare to vote in a referendum on June 23 on whether to stay in the European Union.

Source: Eyes on Yellen for rate-hike signals after payroll data shocks | Reuters

American politicians are not coming clean that US jobs will never recover to the way they were. With advancing technology and globalization Americans are struggling to compete. Education standards for the majority of the working age population trail international benchmarks. Also rising obesity will not help with motivation to work harder than international competitors. Both Clinton and Trump need to get real about jobs in America. Of course, many of Trump’s supporters are right wing populists and are done on their luck looking to Trump to lead them to the promised land – it was similar in Germany in the thirties.

As for Brexit, it’s a question of fear and expectation. It could be be like the 2008 financial crash all over again.

Thoughts?

The Trade Costs of Leaving the EU by Roderick Abbott – Project Syndicate

Collectively, the EU is the largest contributo...

Collectively, the EU is the largest contributor of foreign aid in the world. (Photo credit: Wikipedia)

This is an outstanding must read article published by Project Syndicate. The author, Roderick Abbott, is a former deputy director-general at the WTO and a former deputy director-general at the European Commission Directorate-General for Trade.

Source: The Trade Costs of Leaving the EU by Roderick Abbott – Project Syndicate

The detailed argument from one of the world’s authorities is a recommend read. For the busy reader let me cite the conclusion:

Economic forecasting is an uncertain science. But when almost all projections point in the same direction – that Brexit would be hugely damaging to the UK – it is time to decide what is credible and what is not.

Of course, the leaders of the Brexit campaign are avoiding economics, because they know that discussing and admitting the dire economic prognosis post Brexit, would lose them vast swathes of votes.

I agree that the EU needs urgent reform but that can be win-win with the UK playing an important part from within the EU.

Thoughts?