Opinion – Brexit Hijacks Draghi Retreat as ECB Faces Crisis Yet Again – Bloomberg

This is deeply worrying report from Bloomberg.

Source: Brexit Hijacks Draghi Retreat as ECB Faces Crisis Yet Again – Bloomberg

Whilst the world’s leading central banks issued a joint statement on Friday stating that they were ready to intervene in the Brexit fallout, limitations as to fire-power are becoming apparent, especially with the ECB.

In the past, the ECB has famously said, ‘that it will do whatever it takes…’. Now it looks like some of the stimulus must revert to fiscal expansion. In recent years, Germany has consistently blocked fiscal expansion to enforce the ‘fiscal compact’ which underpins the Euro.

With elections looming in the US, France and Germany, there will be little appetite for fiscal stimulation to head off deflationary pressures. Also in the UK, Chancellor, George Osborne, has this morning said that there will be no emergency budget until a new prime minister takes office, expected to be in October.

Speculators will progressively increase their risk and invite central banks to ‘play chicken’.

Most leading experts predicted the current melt-down but Farage and Johnson just played populist tunes telling bigger and bigger porkies. Big investors, institutions, savers and ordinary people will all likely suffer economic damage.

Surely, it’s time to start pointing finger at those responsible? This includes the pro-Brexit newspapers like the Telegraph etc. Last week, the Economist talked of post-truth politics – well reality has returned with vengeance. The truth is back and financial markets are hemorrhaging.

Thoughts?

 

Brexit: Why did older voters choose to Leave the EU? | UK Politics | News | The Independent

Just a few days before the EU referendum – on June 19 and 20 – the Independent carried out an internet survey of the electorate in Britain and asked more than 2,100 people how they were planning to vote. Some 49% of respondents planned to vote to stay in the EU, with 51% to leave (the result was 49% remain and 52% leave among likely voters). Given that 48% opted to remain and 52% to leave in the actual referendum vote, the survey provided a fairly accurate picture of what happened.

Source: Brexit: Why did older voters choose to Leave the EU? | UK Politics | News | The Independent

The authors of the research are Paul Whiteley, Professor, Department of Government, University of Essex and Harold D Clarke, Ashbel Smith Professor, University of Texas at Dallas

For me, the research adds to our understanding of what happened on this historic day.

I am still convinced that many voters were taken in by what is described increasingly as the Big Lies by Farage et al.   The promises on immigration and diverting EU funding to the NHS just can’t be delivered. Many commentators are expecting increasing anger from those who voted Brexit on promises from Farage/ Johnson and the other populists.

Now is time for careful analysis of what happened, why it happened and charting the way forward. Very cool heads are required.

Thoughts?

 

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