Whither The Gloom and Doom for Post-Brexit UK?

By MIKOspace

Conventional wisdom failed; and the proverbial perfect storm brews in the financial market teacups. The globalscape of economic and trade is beginning to shift, gradually and forever.    

And so the United Kingdom (UK) begins her lone, political and largely psychological, journey out of Europe through a Brexit referendum vote of 52%-48% on Thursday, 23 June 2016, in favour to leave the European Union (EU); which, truth be told, the UK has never been wholly integrated into.  

Gone are the grandiose, delusional and oft-times, nightmarish, dreams of European unity originated in the 15th century and which gathered momentum at the end of the 2nd World War.  In 1972, the UK eventually joined the European Economic Community (EEC) by becoming part of the 1957 Treaty of Rome which established the EEC with the goal of a free trade area with a common tariff.  After a series of related and developmental Treaties, the European Union was formed out of most members of the EEC in 2009. 

The initial gloom and doom predictions for UK in the wake of the Brexit vote are largely misconceived and the doom pundits ignore the fact that the UK has been very much a “reluctant” (EEC and) EU member who was courted with special terms and conditions to become “more European”. 

The UK was allowed to keep her own currency, the British Pound, instead of merging it with the common European currency, the Euro. The British Pound therefore enjoys an independent exchange rate with the EU as well as other trading partners without being unduly impacted by the economic policy vagaries of many EC countries eg. France, Germany, Greece, Italy … etc.  EU currency and financial regulations have no effect on the UK’s own independent policies and measures.  

The ensuing financial markets volatility lacks compelling fundamental causes and makes very little logical sense since the Brexit votes did not change any factors affecting the volumes of trade, which is governed by contracts, and short-term investments, whose prospects and profitability are not suddenly impacted by the votes.  Yet, the British Pound lost 8% against the US Dollar within just 40 hours, as financial players shed sterling pound (why?) for the US greenback (seriously?). 

Never mind the simple economic truths: That 44% of UK exports goes to the EU, and which also accounts for 53% of UK imports. UK exports to the EU sustain about 10% of the UK workforce (about 3 million workers).  In contrast, EU exports to the UK provide more than 8 millions EU jobs.  Economists should also know that these would not change significantly in the coming years to justify the drastic shifts in the currency exchange rates that the market players have incited and instigated.

UK-EU trade is expected to continue and even improve since the UK is a major key export destination of many EU countries. Post-Brexit UK may face some new rules with some EU countries but these are likely to be mitigated by their legacy mutuality of benefits.  

We see once again the stroking of fears by short-term profiteers and speculators.  The explosion of fears and greed for speculative profits exaggerate and inject unfounded and imagined uncertainties to create profiteering opportunities for the smarter market players by fueling short-selling as they await the long-game victories that begin immediate in the next and following weeks.

The administration of UK laws is also not governed by EC legislation, legal systems and jurisdiction.  For example, the European Court of Justice has no power over British Courts of Law. 

The UK enjoys many exemptions from EU rules which must be complied by other EU members.  For example, EU passports have to be produced when entering the UK; unlike the convenience of free travel without need to show EU passports when entering other EU countries.

EU annual membership fee costs the UK 12.9 Billion British Pounds (after the rebates agreed in 1984 from the full UK 17.8 Billion British Pounds).  This includes UK contributions to other EU Institutions.  British farmers, researchers and other beneficiaries received back about UK 6 Billion British Pounds.

What the pundits of Brexit gloom and doom did not want the rest of us to know is that the UK would save at least 350 Million British Pounds per Week in annual membership fee once the UK is out of the EU. 

It is also estimated that compliance with the massive 170,000 pages of the Top 100 EU rules, directives and regulations cost UK businesses an annual 33.3 Billion British Pounds.

The UK is the top recipient of Fixed Direct Investments (FDI) among the EU countries.  In turn, she is also a major FDI contributor to many EU countries. Its proximity to the EU remains a core competitive advantage, which is further enhanced by her relative political and security stability as compared with other EU countries. Most of her other major investment partners are however not from the EU.  

The truth is the EU needs the UK much more in many ways beyond financial contributions. Post-Brexit EU is clearly much poorer financially and materially, as well as much weaker structurally with lesser strategic resources in terms of global leadership influence and prestige.  The EU exit terms for a Post-Brexit UK are therefore expected to be quite favourable for the UK.

There is no rational basis for any gloom and doom predictions for the future of a Post-Brexit UK. Market volatility following the Brexit vote is man-made, and the more powerful men (and women) in the financial markets have a greater hand in provoking and fomenting it.

Post-Brexit UK is finally freed of EU ideological, economic and political shackles to pursue her own destiny and dreams.  It is timely for the UK to reverse its 1968 “East of Suez” decision to retreat from its imperial power bases from the Gulf to the Far East, and replace it with an updated non-imperial engagement plan with equal partners in the British Commonwealth that focus on all the common issues of global concerns.

   

Like a Japanese “ronin” samurai without a “master”-brand to associate and anchor her affiliation, post-Brexit UK as a major political and economic player must now roam the world stage in search of a “uniquely significant and influential” global platform to re-define and re-calibrate her relationships with the global community in all the emergent issues of trade, economics, terrorism, security, immigration, climate change and sustainable development.

The challenges and prospects of a post-Brexit UK will portend well for ASEAN in a new dawn for old relations.  

Related: Post-Brexit UK – Dawn of a New Global Order

BREXIT And EU EXODUS For A Better And More Peaceful World

European countries affiliated to EU better run - run away from EU as quickly as possible. EU is an American racket conceived with evil intent and it is under the complete dictatorial charge of USA 's Neoconservatives and their proxies in EU. Washington's neoconservatives in the Whitehouse, CIA, and Pentagon and the Anglo American Rothschilds, Illuminati, Zionist Axis are the real power behind EU.

The Evil Axis enacts all the EU laws and takes command of all decisions to suit its imperial agenda and the various local governments of the 28 affiliated countries have no say whatsoever. The Axis hijack all the political, economic and military power of the EU countries

USA treats the Russians and the Chinese as its enemies because they are the main obstacles to unchallenged USA global dominance.USA conducts provocative military build up close to the borders of Russia and China. This may lead to inevitable confrontation thus risking a possible nuclear war. For this responsible world leaders in Europe, Asia, Africa and South America must show serious concern not to ally with the Evil Empire's catastrophic imperial agenda. They should reject USA's imperial agenda which is the greatest threat to world peace.

USA thinks now is the time to destroy Russia and China in order to fulfill its ambition of bringing the whole world under its total control - its hegemony

But USA is bankrupt and so it has to create so called allies and partners to share the cost of its reckless wild ventures of wars of aggression.These allies and partners are nothing but subservient lackeys with voidess power and decisions.They are being led by the nose by the Evil Axis and may realise too late that they are being led to the slaughter house in the frontline in confrontation with Russia and China.

The Evil Empire is very cool and calculative and manipulates all hostilities and wars far away from USA's shores.The evil neoconservative warmongers think America is safe and well protected by two big oceans.In fact USA is governed by a few selected rich aristocrats and business tycoons in the Axis who only think in terms of making endless profits by the billions and thrillions of dollars through unconscionable perennial warfare. While they reap endless profits from warfare, their citizens and soldiers have to pay the price of suffering and death.

British people are smart to realise the danger of staying as part of the EU. Their decision to leave the EU sets the pace and example for others to leave the sinister organisation. Other Eu countries must quickly conduct national referendums to leave EU to save themselves from a nuclear Third World War that the Evil Empire may recklessly unleash on this world.

Southernglory1

Monday, 27th June, 2016

 

China would soon have to act against Indonesia

Indonesia is thumping its chest after shooting at Chinese fishing boats and arresting one. So far Indonesia has arrested quite a number of Chinese fishing boats and those of other Asean states and acting very smug. This is the same situation as the 1962 Sino Indian border war when the Indians were thumping their chests after the early initiatives in attacking China’s border guards. The early victories gave the Indian Army a false sense of grandeur and confidence and prepared for a major onslaught with a 4^th Army Corp getting into position for an open war. When China mounted a counter attack, it dealt the Indians a shocking and embarrassing defeat that the Indian soldiers simply dropped their weapons and fled. The PLA just marched into India only to pull back when it had attained its objective of returning to a status quo, driving the Indian Army back to where they belonged.

China has not taken any military action yet since the Indonesian shooting incident. This is like the Ip Man movie when he was challenged to a fight in his house. He kept defending without attacking and the opponent got more aggressive, breaking down many of his furniture. Then he was told by his little son that his wife told him that if he still refused to strike back, more furniture would be broken. Only then that he hit back and threw the opponent out in another embarrassing defeat.

If China does not hit back, not only Indonesia would get more aggressive, the Philippines and the Malaysians would think they could do the same as China is really weak and not able to hit back. I have left out the Vietnamese as the latter had a taste of what it would be like trying to take on the PLAN. This is reported in Yahoo News.

‘

There have been two armed conflicts between China and Vietnam in the sea.

In 1974, a clash erupted between the South Vietnamese navy and Chinese forces that left about 50 Vietnamese troops dead.

The other major conflict occurred when Vietnam and China fought a naval battle on Johnson Reef in the Spratlys in 1988 that killed about 70 Vietnamese military personnel.’

The Vietnamese have learnt their lesson and would not be crazy to challenge the PLAN again. But for Indonesia, the Philippines and the Malaysians, these twits have not learnt any lessons yet and with the Americans behind their backs, they really think that China would not hit back.

Just wait. China is even prepared to take on the USA and taking on these twits is chicken feat. China is just tolerating their silly chest thumpings for the time being. It is only when before China kick asses.

Car Park rates to go up

Front page news that public car park rates will go up soon and a study is in process. You can expect this kind of money grabbing decision to come very soon. No time to waste. One question, govt short of money or what?

What is amusing are the silly reasons that are being quoted to justify a big round of increases. Maybe the cost of living index is too low and the people can afford to pay more. Maybe too long never increase, so it is time to increase. Then of course, the standard high cost of living, inflation and what have you. Actually want to increase just increase lah. Who is there to object or protest or to say that it is unreasonable, unnecessary, it will increase the cost of everything, the cost of living, the cost of visiting your friends or your parents and grandparents?

Ok, listen to this, ‘the review is meant to “right price public car park charges and reduce the gap between the fees charged by private and public car parks.’ What a gem.  The people have a choice not to go to public car parks but no choice parking at HDB car parks. It is home, stupid. Now you people better protest if private car park operators increase their rates or over charged. It would be used as an excuse to raise public car park fees. This is something like HDB prices priced to market private housing prices. It is like that mah!

Next, ‘Separately, the HDB pointed out that its carparks have improved over the years, with amenities such as landscaped decks, electronic parking systems and lifts. Wah, it is like a cup of kopi, now taste better, so good reason to raise price. Or is it that they are now using porcelain cups instead of plastic cups? Who cares about the landscape in a car park? And why pass the cost of electronic parking system that makes collecting fees more efficient to the car owners? Sial lah!

Oh, this one I must agree. HDB is also studying to charge non residents different rates. Got non residents meh? I thought everyone in the island is a resident except permanent or not permanent? Second car charge more. Thought this is already in practice? How about bigger cars charge more? Sorry big car owners.

This one is classic, sooo clever. According to parking policy expert, Dr Paul Barter, ‘Rates could be raised during peak periods and lowered in the off peak period…If it’s too full, it’s too cheap, and if it’s too empty, it’s too expensive.’ This one HDB car owners sure jialat jialat. Evening and night time when all went home after work, it would be peak period for the HDB car parks. So evening and night parking would be more costly according to this logic. Knn, your HDB home car park is subject to demand and supply meh, peak hour and non peak hour?  Got choice meh?

We need foreign experts for such silly brilliant ideas mah! Singapore where got so clever people other than pricing HDB to resale market price? Actually the kopitiam ah peks and ah mahs have better ideas than these if you are willing to ask them.

Give the HDB a break or they will lose more billions. This will be a better reason.

No tear for the Red Indians

Every year on June 4, there will be commentaries and sit ins to commemorate the Tiananmen Incident not only in HK and Taiwan but also in the West.  I was reading this article deemed important enough by our main media to be reported in one full page.  Nick Frisch, a Yale Law School doctoral student wrote this in his article ‘Tiananmen at 27: Is it worth looking back? The first para:

‘Each spring, a ripple of recollection passes through Beijing and anyone over the age of 35 remembers how hundreds of thousands of Chinese citizens went into the streets to join striking students.

The crowds, demanding reforms, used their bodies as barricades against advancing columns of troops.  No on believed the People’s Army would fire at its namesake.

When the gunfire started, the crowds melted away in shock and disbelief. Most individuals became anonymous to history and one another, and, like other urbanites across China, walled off memories of the massacre and accepted the Communist Party’s gospel of prosperity: Make money, avoid politics, get on with your lives.’

I find the above very well written and I choose not to reinvent the wheel and to use the same text, with a few changes, to describe the fate of the Red Indians in North America a few centuries ago. Now try reading this.

‘Each spring, a ripple of recollection passes through the Plains of the Prairies and how anyone of any age, could not remember how millions of native Americans, called Red Indians, went into the prairies to join other native Indians.

The crowds, demanding for the right to live in their land, used their bodies as barricades against advancing columns of troops and the Calvary.  No on believed the American troops would fire at its namesake, at native Americans.

When the gunfire started, the crowds melted away in shock and disbelief. Most individuals, mothers and children, became anonymous to history and one another, and, like other urbanites across America, walled off memories of the massacre and accepted the Confederates and American Union’s gospel of prosperity: Make money, avoid politics, get on with your lives.’ Unfortunately for the tens of millions of native Americans aka Red Indians, the genocide was so complete that barely a few survived today in the land of the free.

While the bleeding hearts and white man’s conscience want to remember 4^th of June, would the native Indians want to remember 4^th of July as their Independence Day or the Day they were terminated to near extinction? To quote Frisch, ‘It is a question that global media multinational businesses and foreign governments must confront as well.’ Or they have forgotten, afraid to confront to offend the white Americans?

The silence of the Red Indians is remarkable. There is no tear left for the Red Indians.

Frisch emphasized that there is one place, Hong Kong, 1,900km south of Beijing, that allows mass remembrance of Tiananmen. Would there be a place in the North American continent, a city far away from the Plain of the Prairies, to have a remembrance of the genocide of the Red Indian as a human race?

Frisch quoted a Hong Kong journalist Yau Lap-poon saying, ‘Without June 4, would China have travelled its 27 year path of development? ... Perhaps the blood of Tiananmen was a kind of fertilizer, helping China bloom prosperously on the soil of market economics.’

Using the same phrase, ‘Without the massacre of the Red Indians, would the USA have travelled its 240 year path of development? … Perhaps the blood of the Plain of Prairies was a kind of fertilizer, helping the USA bloom prosperously on the soil of market economics.’

Frisch also quoted a poem by Cao Shuying, a Beijing poet, ‘I am from a planet you cannot forget…We survivors look like husks…A burden over years…The laughter of lost days, emptied out.’

Take a ride into the prairies in a cold summer night and listen…You may still here the Red Indian laughter of lost days….many centuries ago. You may still see them chasing their squaws around campfires surrounded by their wigwams. You may still see the trails of smokes floating into the air from the pipes of the big chiefs.

No more tears for the Red Indians.