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Samizdata quote of the day

And they worry the pound might crash? Pay attention to the euro.

Zero Hedge

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4 comments to Samizdata quote of the day

  • Mr Ed

    If the French establishment believe that le Pen might win the Presidency (barring a large influx of votes from the overseas territories etc.) then they might see a referendum as a way to cut her off at the pass.

  • monoi

    A referendum in France would be even more out than the UK. Remember that the French voted against Lisbon, only to be ignored…

    As for the pound, the ECB is printing 80bn euros a month out of thin air but it is sterling who has an issue…

  • Regional

    This was extracted from an article in Quadrant:

    The London FTSE 100 index was down 3.15%. But across the channel, the German DAX index was down 6.82% and the Paris CAC index was down 8.04%. The EURO STOXX 50 index was down 8.62% and the EURONEXT 100 index was down 6.72%. In other words, the percentage drop of leading stock indexes in the rest of the European Union was, on average, more than double that of the London index. In passing, we might observe that the Swiss stock index dropped by 3.4%. It so happens that Switzerland, shortly before the Brexit vote, formally withdrew its application to join the European Union.

    Amidst all the hyperventilation from financial pundits, what might these figures be suggesting? Contrary to the propagated bunk that Britain would suffer economically from withdrawal from the European Union is the simple fact that Britain is a net contributor to the European Union. According to published figures, it appears Britain contributes around 21% of European Union net receipts. In other words, membership of the European Union is a net drain on British finances. Could the markets be telling us that it is the Eurozone, not the United Kingdom, which is facing a financial crisis?

    As for the push by the Scottish National Party Government, led by Nicola Sturgeon, for a second independence referendum, a reality check is in order.

    First, Scotland’s solvency is dependent on continued subsidies from the British government in London. In the aftermath of the British withdrawal, it is hard to imagine the European Union welcoming a new member which, from day one, would be net dependent on subsidies from Brussels. Under the rules of the European Union, Scotland would have to make a fresh application for membership.

    Second, any application for membership has to meet with the unanimous consent of all existing member states. Would Spain agree to an application from a breakaway state, thereby ceding legitimacy to the Basque claim for secession from Spain? I suspect that moves for any Scottish breakaway from the United Kingdom will suffer a similar fate as those moves, some years back, by French-speaking nationalists in Quebec.

  • Paul Marks

    In theory the Pound is no more sound than the Euro – they are both equally fiat.

    But the Pound has a history behind it – once it was gold. And it also has an old nation – which will still need a currency (perhaps gold again).

    The Euro has nothing.

    The Euro is nothing.