• Tag Archives Great Britain
  • UK PMs Push Back As Regulators “Bend The Rules” To Accommodate Saudi Aramco IPO

    All IPO’d up and no place to go? UK portfolio managers with $6.9 trillion resist rule bending by regulator to achieve Aramco London listing

    Another potential problem for the world’s biggest ever (potential) IPO…
    A lobby group representing UK portfolio managers with $6.9 trillion AUM has warned the UK financial regulator that bending the rules to accommodate Aramco’s IPO will damage London’s status as a global financial centre.
    In a letter to the head of the Financial Conduct Authority (FCA), the embattled Andrew Bailey, the Investment Association (IA) argued that it threatened the ‘high standards’ of London’s listing regime.
    In ‘Funds fire broadside over Saudi oil float’, the Sunday Times noted that ‘Britain’s largest investors have turned up the heat on the City watchdog over its controversial plans to allow Saudi Arabia’s oil giant to float in London.’
    Besides the tricky issue of its oil and gas reserves (especially the Ghawar field), the IA argued in the letter that ‘For the premium segment of the UK main market, investors must have confidence that a company is run for all shareholders, not just the major or controlling shareholder.’

    This post was published at Zero Hedge on Oct 17, 2017.


  • Theresa May’s Government Fears Imminent Collapse Of Brexit Negotiations

    Following Theresa May’s dinner with Jean-Claude Juncker in Brussels, we have a promise that both sides are committed to accelerating Brexit negotiations…except nobody actually believes that.
    Apart from the ‘bear hug’ that Juncker gave Britain’s Brexit Secretary, David Davis, as they went their separate ways, there is no evidence that relations are any more cordial, or that any tangible progress was made in breaking the deadlock.
    Rather than no progress, however, Bloomberg is reporting that the UK government sees the potential for the negotiations to collapse after this week’s EU Summit. ‘U. K. Prime Minister Theresa May’s government fears Brexit talks will break down unless the European Union gives ground at a key summit this week, according to a person familiar with her team’s views. Without a clear sign that negotiations will progress to trade and transition arrangements by December at Thursday’s summit of EU leaders, the entire Brexit process will be in danger of collapse.’
    Mrs May made a telephone call on Sunday to the one person, Merkel, who could have softened the EU’s stance ahead of the dinner. Consequently, we were not surprised to learn that now ‘senior British ministers are losing faith in the EU’s willingness to strike a deal, the person said.’
    As we’ve said before, it still boils down to money and the EU is not shifting until the two sides can agree on a number.
    The growing problem for Mrs May is that she now has little room to maneuver due to the weakness of her own position. The source in Mrs May’s team told Bloomberg ‘May took a political risk by promising to pay into the EU budget and settle the divorce bill in a speech in Florence, Italy, last month and now needs something in return for before she can make concessions.’

    This post was published at Zero Hedge on Oct 17, 2017.


  • Brexit UK Vulnerable As Gold Bar Exports Distort UK Trade Figures

    – Brexit UK vulnerable as gold bar exports distort UK trade figures
    – Britain’s gold exports worth more than any other physical export
    – Gold accounted for more than one in ten pounds of UK exports in July 2017
    – UK’s stock of wealth has collapsed from a surplus of 469bn to a net deficit of 22bn – ONS error
    – Brexiteers argue majority of trade is outside EU, this is due to large London gold exports
    – Single gold bar (London Good Delivery) is, at today’s prices, worth just over 400,000
    – ‘There are few things you’ll ever touch which pack so much weight into such a small size’
    – UK’s economic vulnerability means safe haven gold essential protection
    ***
    I’ve never played poker but I’m pretty sure the number one rule is not to reveal your cards to your opponents.
    Yesterday the ONS possibly gave the EU one of the biggest reveals so far in Brexit negotiations. Revised figures from the statistics bureau showed the country’s stock of wealth has fallen from a surplus of 469 billion to a net deficit of 22 billion as reported by LBC.

    This post was published at Gold Core on October 17, 2017.


  • Gold Standard Resulted In ‘Fewer Catastrophes’ – FT

    Editor Mark O’Byrne
    – ‘Going off gold did the opposite of what many people think’ – FT Alphaville
    – ‘Surprising’ findings show benefits of Gold Standard
    – Study by former Obama advisor in 1999 and speech by Bank of England economist in 2017 make case for gold
    – UK economy was ‘much less prone to extremes’ under than the gold standard – research shows
    – ‘Gold standard seems to have produced fewer catastrophes for Britain’ – data shows
    – FT still wary of gold standard arguing ‘stability can be overrated and growth is worth having’
    – Finding is not surprising and joins a wealth of evidence and research that shows gold’s importance as money, a store of value and safe haven asset
    300 years ago last week on the 21st September, 1717 Sir Isaac Newton, Master of the Royal Mint of Great Britain, accidentally invented the gold standard.
    Last month it was the 46th anniversary of President Nixon ending the gold standard. Since then the world has existed on a system of fiat paper and digital currency. It works so badly that it has lead to the global financial crisis, unending debt issues and a dramatic devaluation in sovereign currencies.
    Despite this, much of the media and central banking system remain supporters of the current financial and monetary status quo.

    This post was published at Gold Core on September 28, 2017.


  • Social destruction by the abuse of money

    In Britain, the top 1% of earners pay over a quarter of all income tax collected, and while super-rich British residents perhaps don’t have the tax breaks the Macklowes enjoy, the bulk of the burden falls on lawyers, bankers, company executives and owners of successful private enterprises. And it should, say the collectivists…. One of the juicier stories doing the rounds in New York society is the Macklowe divorce. Harry, the husband, kept a French mistress for two years before seeking a divorce from his wife of 58 years. So far, this is a run-of-the-mill marital split. But what made it the subject of gossip is the extraordinary lifestyle of the Macklowes, the mud being slung, and the expectations of the wronged 79-year old wife, seeking a billion or so to see out her remaining days.
    They say hell hath no fury, and all that. Here is one of New York’s richest couples, washing their laundry in public, and it emerges that Harry has not paid tax since 1983. Harry’s lawyer bluntly stated in court that ‘people in real estate don’t pay taxes’. It echoes Leona Hemsley’s infamous quote that emerged at her trial thirty years ago, when the Queen of Mean said ‘We don’t pay taxes, only little people pay taxes.’

    This post was published at GoldMoney on September 28, 2017.


  • The Pension Crisis Coming to a Boil

    The BBC has come out and reported that three million savers in Britain in what is known as final-salary pension schemes only have a 50/50 chance of receiving the payouts they were promised, a study has concluded. We issued a special report on the rising Pension Crisis and it has been unfolding on schedule. The odds of those in government receiving what they were promised is probably less than 50/50 worldwide with few exceptions.

    This post was published at Armstrong Economics on Sep 28, 2017.


  • UK Slams Tariffs On Bombardier: “This Is Not What We Expect From A Long-Term Partner”

    It appears the Commerce Department’s preliminary ruling, issued late last night, to slap a 220% tariff on Canadian aircraft manufacturer Bombardier could trigger an all-out trade war between the UK and Canada (on one side) and the US (on the other) as public officials in the UK and Canada blasted the ruling and threatened retaliation should the sanctions, which still need to be approved by the US International Trade Commission, become permanent.
    Earlier today, the Commerce Department ruled that Bombardier’s jets should face the levy because the company received anticompetitive government subsidies. The ruling comes after Boeing said the Bombardier C-Series jet would not exist without hundreds of millions of dollars in launch funding from the governments of Canada and Britain, or a $2.5 billion equity infusion from the province of Quebec and its largest pension fund in 2015. Boeing brought the complaint after Delta Air Lines agreed in April 2016 to purchase 75 C-Series jets, an order worth some $5 billion.

    This post was published at Zero Hedge on Sep 27, 2017.


  • UKIP Wants Nigel Farage Back Claiming May Has Betrayed BREXIT

    Theresa May’ Florence speech is being seen by many as a betrayal of BREXIT. Instead of getting on with it, she has said that there will be a longer transition period even two years beyond 2019 into 2021. She said that Europeans will still be able to come and work in Britain into 2021 but under a ‘registration system’ that many fear will still allow terrorists to enter from Europe.
    Prime Minister May said that the temporary transitional arrangements ‘will not go on for ever’and will end around two years after Britain leaves the European Union (EU) in 2019. She made it clear that ‘[d]uring the implementation period, people will continue to be able to come and live and work in the UK.’ She did also say that ‘[t]here will be a registration system, an essential preparation for the new regime.’

    This post was published at Armstrong Economics on Sep 24, 2017.


  • The Agony of the Welfare State, Finnish Style

    The title of this post – minus the reference to Finland – is shamelessly copped from a prescient essay that Ludwig von Mises wrote in 1953. In his article Mises pointed out that in Great Britain and Europe, the system of progressive taxation was already confiscating nearly the entire ‘surplus’ incomes of the successful capitalists and entrepreneurs, meaning that higher tax rates would no longer produce additional funds to finance these countries’ ever-expanding welfare states. ‘Henceforth,’ Mises foretold, ‘the funds of the beneficiaries themselves have to be tapped if more handouts are to be made to them.’
    Today things have gotten far worse than even Mises foresaw. For now it is becoming evident that the ‘beneficiaries’ of the most advanced welfare states are not reproducing rapidly enough to pay for the benefits that they are receiving and are therefore ‘endangering’ the ‘long-term survival’ of the ‘more generous’ welfare states. A notable example is Finland, which faces a ‘massive baby problem.’ Thus, in 2016, Finland recorded the lowest number of newborn babies in 148 years, or since the great famine of 1868. The Finnish fertility rate has fallen to 1.57 per woman and the number of people under 20 years of age as a percentage of the working age population is the lowest among Nordic countries at less than 40%, down from 60% in 1970.

    This post was published at Ludwig von Mises Institute on September 22, 2017.


  • Pensions and Debt Time Bomb In UK: 1 Trillion Crisis Looms

    – 1 trillion crisis looms as pensions deficit and consumer loans snowball out of control
    – UK pensions deficit soared by 100B to 710B, last month
    – 200B unsecured consumer credit ‘time bomb’ warn FCA
    – 8.3 million people in UK with debt problems
    – 2.2 million people in UK are in financial distress
    – ‘President Trump land’ there is a savings gap of $70 trillion
    – Global problem as pensions gap of developed countries growing by $28B per day
    Editor: Mark O’Byrne
    ***
    There is a 1 trillion debt time bomb hanging over the United Kingdom. We are nearing the end of the timebomb’s long fuse and it looks set to explode in the coming months.
    No one knows how to diffuse the 1 trillion bomb and who should be taking responsibility. It is made up of two major components.
    710 billion is the terrifying size of the UK pensions deficit 200 billion is the amount of dynamite in the consumer credit time bomb How did the sovereign nation that is the United Kingdom of Great Britain and Northern Ireland get itself so deep in the red?
    This is not a problem that is bore only by the Brits. In the rest of the developed world a $70 trillion pensions deficit hangs heavy.

    This post was published at Gold Core on September 22, 2017.


  • America’s Weapons: “The Dollar And The Drone”

    It was said that ‘the guinea and the gallows’ were the true instruments of British imperial power.
    The guinea represented the coined wealth of Great Britain.
    The gallows represented its… constabulary zeal in policing restless natives.
    This is the 21st century of course… a time of enlightenment.
    ***
    Today’s instruments of imperial power are no longer the guinea and the gallows.
    No. Today’s instruments of imperial power are ‘the dollar and the drone.’
    The dollar and the drone are America’s weapons.

    This post was published at Zero Hedge on Sep 14, 2017.


  • British People Suddenly Stopped Buying Cars

    – British people suddenly stopped buying cars
    – Massive debt including car loans, very low household savings
    – Brexit and decline in sterling and consumer confidence impacts
    – New cars being bought on PCP by people who could not normally afford them
    – UK car business has ‘exactly the same problems’ as the mortgage market 10 years ago, according to Morgan Stanley
    – Bank of England is investigating to make sure UK banks are not overly exposed…
    – Prudent British people buying gold with cash, not cars with debt
    by Jim Edwards, Business Insider UK
    ***
    British people have suddenly stopped buying cars.
    It’s not clear why. But a number of anti-car trends have hit Britain simultaneously – such as the rise of Uber and a decline in household savings – driving down car sales.
    The chart above of total car sales both old and new, from Barclays, says it all. On this chart, the grey-black line is the crucial one. The blue line (online sales) represents only a small number of purchases. Barclays

    This post was published at Gold Core on September 12, 2017.


  • Further thoughts on Gibson’s paradox

    ‘The paradox is one of the most completely established empirical facts in the whole field of quantitative economics.’ – John Maynard Keynes
    ‘The Gibson paradox remains an empirical phenomenon without a theoretical explanation’ -Friedman and Schwartz
    ‘No problem in economics has been more hotly debated.’ – Irving Fisher
    Introduction
    Two years ago, I found a satisfactory solution to Gibson’s paradox.i The paradox is important, because it demonstrated that between 1750-1930, interest rates in Britain correlated with the general price level, and had no correlation with the rate of price inflation. And as Friedman and Schwartz wrote, a theoretical explanation eluded even eminent economists, so economists preferred to assume the quantity theory of money was the correct guide to the relationship between interest rates and prices. Therefore, the consequence of resolving the paradox is that the supposed linkage between interest rates, the quantity of money and the effect on prices is disproved.
    Gibson’s paradox tells us that the basis of monetary policy is fundamentally flawed. The reason this error has been ignored is that no neo-classical economist has been able to establish why Gibson’s paradox is valid, as the introductory quotes tell us. Consequently, this little-know but very important subject is hardly ever discussed nowadays, and it’s a fair bet most of today’s central bankers are unaware of it.

    This post was published at GoldMoney on September 07, 2017.


  • Britain’s Top Priest Slams Rich-Poor Divide In “Britain’s Broken Economy”

    While the world has grown used to The Pope sticking his papal nose in the world’s business (“horrrific” borders, “grave risks” of libertarians, and the virtues of socialism); Britain’s most senior clergyman, the Archbishop of Canterbury, has now decided that it is not enough to preach His word, but better to use his position of influence and adulation to discuss what’s wrong with capitalism…
    The British economic model needs fundamental reform.
    It is no longer generating rising earnings for a majority of the population, and young people today are set to be poorer than their parents. Beneath its headlines figures, the economy is suffering from deep and longstanding weaknesses, which make it unfit to face the challenges of the 2020s.
    Fundamental reform has happened before, in the 1940s and 1980s.
    The persistent economic problems we have experienced since the 2008 global financial crash demand change of the same magnitude now. This should be guided by a new vision for the economy, where long-term prosperity is joined with justice for all.

    This post was published at Zero Hedge on Sep 7, 2017.


  • WHY KOREAN TENSIONS SHOULD SOON EASE – effect on Dollar and Precious Metals…

    The tensions centered on the Korean peninsula should soon ease, leading to a rally in the dollar and a (mild) reaction in Precious Metals and other commodities like copper, for reasons that we will consider in this essay.
    There can be no denying that what we have previously referred to as ‘The Empire’ is intent on world domination. The evidence is there for all to see in the form of a vast network of military bases spread across the globe, and a history of invasion of various countries by the Empire in recent years in pursuit of its geopolitical objectives. The economic engine that drives the Empire and supports its imperialistic ambitions is the dollar, whose Reserve Currency status means that infinite quantities of it (or proxy derivatives like Treasuries) can be printed up and swapped for goods and services with any and all countries around the world, and it is this dynamic that supports the formidable US military machine.
    The last Empire that tried to take over the world was Nazi Germany, which recruited Japan to take over the Far East, so that together they became a global axis. As we know this led to an enormous titanic struggle for over 5 years to contain it and defeat it, resulting in immense destruction and loss of life. The reason that Hitler failed was good old fashioned imperial overreach – he didn’t know when to ‘call it a day’ and consolidate his gains, instead he tried to do what has been the undoing of most Empires in the past, take over the entire planet. Actually he got very close to creating a sustainable 3rd Reich, but made several key mistakes. The first was not overrunning Britain while he had the chance, instead he made the fatal mistake of leaving it and starting a war on a second front with Russia, which meant that, in addition to his logistical support being spread too thin, the US was later able to use Britain as an aircraft carrier to bomb Germany back into the Stone Age, which needless to say resulted in its defeat. The second mistake was permitting eastern henchman Japan to bomb Pearl Harbor, and thus bring the US into the war against both Nazi Germany and Japan. Perhaps due to parochial ignorance, Germany and Japan made the catastrophic miscalculation that they could somehow overcome the United States, which at the time was an emerging economic powerhouse. The bombing of Pearl Harbor awoke the sleeping giant and meant the beginning of the end for the Germany – Japan Empire.

    This post was published at Clive Maund on Tuesday, September 05, 2017.


  • Frontrunning: August 25

    Trump to push for tax reform passage by year’s end, says Cohn (FT) Bond Routs, Stock Surges: Jackson Hole Can Be Messy for Markets (BBG) Hurricane Harvey intensifies (Reuters) GOP Plan to Kill Estate Tax Sets Up Conflict Over Charitable Giving (BBG) ECB Is Set to Buy More Bonds (WSJ) U. S. Plans to Unveil New Round of Sanctions on Venezuela, Sources Say (BBG) U. S. Navy recovers second body in search for sailors missing after collision (Reuters) Britain will not pay ‘a penny more’ than it thinks right to leave EU: Boris Johnson (Reuters) Amazon Clobbers Grocers With Price Cuts at Whole Foods (WSJ) Samsung Heir Gets 5 Years for Scandal That Toppled a President (BBG) Auto Dealers Dogged by ‘Boys Club’ Showrooms Costing Them Sales (BBG) U. S. state election officials still in the dark on Russian hacking (Reuters) Band of Brothers Plotted Barcelona Terror (WSJ) U. S. fighter pilots in Afghanistan prepare for more air strikes (Reuters) China’s Aviation Push Lifts Aircraft Manufacturers (WSJ) Thailand’s ousted PM Yingluck has fled abroad: sources (Reuters) Centuries-Old Stolen Copy of Christopher Columbus Letter Recovered in U. S. (WSJ) San Francisco latest city to brace for protests (Reuters) Why Florida Farmers Want to Kill Nafta (BBG)

    This post was published at Zero Hedge on Aug 25, 2017.


  • The fiscal benefits of free trade

    Western governments have an overriding problem, and that is they have reached or exceeded the bounds of taxation, at a time when legally mandated welfare costs are accelerating. Treasury departments in all the welfare nations are acutely aware of this problem, to which there’s no apparent solution. The economic recovery, so consistently forecast since the great financial crisis, has hardly materialised and has added to the problem.
    There is, if treasury economists could only understand it, a solution in free trade.
    One of the UK’s leading economists and Brexiteers, Patrick Minfordi, produced an interesting paper, which brought up this subject. It got little coverage in the press, and even that was extremely negative. Trading on the Future was the only economic modelling exercise that showed significant benefits for Britain from free trade.ii
    This is the headline from the Independent (19 April): ‘Only economic study showing benefits of Brexit debunked as ‘doubly misleading’.’ The establishment, which is not attuned to free trade, strongly disagreed and presumably felt bound to protect its position.

    This post was published at GoldMoney on August 17, 2017.


  • CHINA, GOLD and the US DOLLAR…

    The Neocon – Zionist drive for world domination is set to be brought to a screeching halt by something as simple as GOLD. This article is not politically motivated – the writer has no political agenda or affiliation – and the motivation for producing it is to enable you to understand the pivotal role that gold will play in thwarting the Empire’s imperialist ambitions, and how this means that the price of gold – and silver – will skyrocket, and sooner than many think possible. When you know that this is set to happen, and you understand the key reasons why, you will be able to position yourself to profit greatly from this profound and seismic global shift.
    First we will consider briefly the ambitions of the Empire and its current situation. Although transnational in scope, the Empire’s main geographical centers of power are the United States, Israel, whose power is out of all proportion to its size, and the old center of power Britain, which serves as the ‘Right Hand Man’ or ‘Number One’. The goals of the Zionist part of the Neocon – Zionist alliance are the creation of a greater Israel, to use their words ‘stretching from the Euphrates to the Nile’, and in pursuit of this goal they have already destroyed a significant part of the Arab world employing a ‘scorched earth’ policy utilizing the US military, which they control, and which is designed to wreck the economies of neighboring Arab States, leading to their subjugation. Their ultimate prize is Iran – once they have overcome Iran, the hugely indulgent and self-important Arab Sheikhs in Saudi will be unceremoniously kicked out of their palaces and probably left to the mercy of the mob, and here we should note that as Israel is a nuclear power with a population of only 8 million, and Iran is a non-nuclear power with approx. 80 million people, the attack would have to go nuclear to succeed. At this point most Arabs will be turned into an army of indentured servants who exist to serve their Masters in the Greater Israel – the only other choice they will have will be to flee to the emerging Caliphate in Europe, where Germans have already become 2nd class citizens in their own country, since immigrants have more protection under law than the indigenous population. From Israel’s point of view it is surrounded by States that are very different from itself, some of whom want its destruction. In this situation any nation would be likely to become paranoid. The ambitions of the Neocon element of the Neocon – Zionist alliance are much more succinctly stated as world domination, pure and simple – the control and exploitation of all the peoples of the world.

    This post was published at Clive Maund on Tuesday, August 15, 2017.


  • The Secret History Of The Banking Crisis

    Accounts of the financial crisis leave out the story of the secretive deals between banks that kept the show on the road. How long can the system be propped up for?
    ***
    It is a decade since the first tremors of what would become the Great Financial Crisis began to convulse global markets. Across the world from China and South Korea, to Ukraine, Greece, Brexit Britain and Trump’s America it has shaken our economy, our society and latterly our politics. Indeed, it has thrown into question who ‘we’ are. It has triggered both a remarkable wave of nationalism and a deep questioning of social and economic inequalities. Politicians promise their voters that they will ‘take back control.’ But the basic framework of globalisation remains intact, so far at least. And to keep the show on the road, networks of financial and monetary co-operation have been pulled tighter than ever before.
    In Britain the beginning of the crisis was straight out of economic history’s cabinet of horrors. Early in the morning of Monday 14th September 2007, queues of panicked savers gathered outside branches of the mortgage lender Northern Rock on high streets across Britain. It was – or at least so it seemed – a classic bank run. Within the year the crisis had circled the world. Wall Street was shaking, as was the City of London. The banks of South Korea, Russia, Germany, France, Belgium, the Netherlands, Ireland and Iceland were all in trouble. We had seen nothing like it since 1929. Soon enough Ben Bernanke, then chairman of the US Federal Reserve and an expert on the Great Depression, said that this time it was worse.

    This post was published at Zero Hedge on Aug 9, 2017.


  • Facial Recognition in Street Cameras to Increase Tax Revenues

    Many cities around the world are now introducing facial recognition into their cameras which monitor the streets. In other words, the government will know who and where you are. New York City is introduction this technology. This is by no means about terrorism. It is being employed to find anyone accused of any crime and that will include tax avoidance. In fact, facial recognition technology in Britain has been employed and they made their first arrest using this technology. They already have some 500,000 people’s faces in their database. Under the protest of data protectors in Germany, they too have begun a test run for the facial recognition detection by video camera in Berlin. The systems of three manufacturers are to be tried out for face recognition.

    This post was published at Armstrong Economics on Aug 4, 2017.