QUESTION: Marty; There is
talk that Britain will join NAFTA rather than the EU. Does that make sense?
What do you think?
ANSWER: The EU is in a
death spiral. Every law they pass is to preserve their own power – not for the
good of the people or Europe. Once again, the government solution always
runs counter-trend to the Free Markets setting the stage for the next crisis.
The EU banking rules allow them to just seize everything and shareholders get
zero. This is what they did when Spain’s Banco Santander bought rival Banco
Popular for €1. The bank which was valued in the collapse at €1.6 billion
yet it was sold for €1. Now, banks are finding it extremely hard to
raise new share capital. That will only result in more bank seizures. Hello! It
would be nice to have someone in government with common sense.
Britain should run away from the EU and slam the door shut and
then nailed it to be sure. The British should abandon the EU altogether and
undeniably join the NAFTA trade agreement. If they do not, Britain will find
itself being dragged down with the sinking ship.
A free trade agreement with the USA would be a slap in the face
for the EU and even that will never cause the EU to look in the mirror. Like
Hillary, they will blame everyone other than themselves.
The
government data on British GDP clearly demonstrates that Britain has NOT benefited from
joining the EU because of the secret agenda to federalize Europe to eliminate
European War. This theory of one government in Europe, The United States of
Europe, will end a possible war is just absurd.
This narrative that the entire purpose of the federalization of
the EU is to stop any war was stated bluntly by Hollande in the European
Parliament. You cannot get more one-world government than this theory. But this
spills over into economic power and the surrender of all sovereignty to Brussels.
Margaret
Thatchers Burges Speech was spot on about the European Project. It was clear
behind the curtain back on September 21, 1988, that this was all about the
federalization of Europe and the surrender of national identity. The Guardian ran the story:
Thatcher sets face against united Europe. Let me make this very clear. Maggie
was thrown out of office by a coup orchestrated by her own cabinet. They were
eager to surrender sovereignty to Europe and bought into the whole idea of the
United States of Europe.
The new
government headed by John Major took the Pound into the Exchange Rate Mechanism (ERM) the same month that
German unification began. The monetary policies of Germany were starkly
different from Britain. I was called when the attack on the Pound unfolded and
was asked what our model said about the Pound because they knew I was a friend
of Thatcher. I relayed its analysis that the Pound had to be devalued. I was
told that was impossible that John Major had said even the week before the
Pound would be maintained in the ERM. I then said that the Pound must be suspended if
not officially devalued. The pressure was intense. I explained that a fixed
rate is a GUARANTEED trade. I can bet
billions and if wrong, nothing happens and I get my money back. That finally
made the point.
Black
Wednesday,
September 16th, 1992, was when the UK Conservative government that had thrown
Thatcher out of power to take the Pound into the coming Euro was forced to
withdraw from the ERM. While everyone blamed George Soros for making over US$1
billion from this GUARANTEEDtrade, the truth of the matter this is the only thing that SAVED Britain. Britain
was headed into the Euro and the elite Conservatives would not listen to
Margaret Thatcher.
Now
that BREXIT is in play, the
British should be on their hands and knees and be kissing their ground that
they are not connected to continental Europe. There are many national and
regional sensitivities that must be taken into account when it comes to trade.
The British want to conclude agreements with India, Turkey, and China, that are
not on the same page with the EU.
The
government in London is targeting a free trade agreement following the BREXIT to limit
disadvantages that people think exist for the domestic economy after the EU
exit 2019. The EU is more interested in punishing Britain as an example of
other member states that they better not leave the EU or else. This is all
about punishment – not economics.
The
British government is under pressure, as the EU will only negotiate the free
trade agreement in London if the BREXIT divorce talks have made sufficient progress. Donald Tusk
has been playing hard-ball to punish Britain and actually said the EU was
negotiating in good faith without any evidence whatsoever to prove that
statement. He said in turn: “We hear from London that the UK government is preparing a ‘no
deal’ scenario. I would like to say very clearly that the EU is not working on
such a scenario. “
There
has been little tangible results in trying to negotiate with the EU. British
Prime Minister Theresa May is expecting the conclusion of the BREXIT talks only before
the departure from the EU in March 2019. Clearly, the British government
is also preparing for a situation where no agreement is reached with the EU on
exit and contingency plans are being put into place for this likelihood. Keep
in mind that the EU will NOT make easy for they fear other states will take the same
option.
This is
a matter of pride for the EU. A hard BREXIT would hit especially the German
economy. The representatives of the German economy are already nervous because
of the slow negotiations. The German Federation of German Industries (BDI) has
already warned the government that German companies had to “take precautionary measures
for a very hard departure.” The Association of German Machinery and Plant Engineering
(VDMA) said: “A tough Brexit is a conceivable but not acceptable scenario for the
economy.”
Why is German industry getting nervous with its politicians
seeking revenge? Britain is the world’s fourth-largest international
market with an export volume of €7.4 billion euros last year for German
products. Conversely, the Britain delivered 2016 machinery construction
products worth €2.4 billion to Germany.
The problem is purely political and has become a turf war and
pressure builds against the dreams of the centralized federalization of Europe.
