“The real voyage of discovery consists not in seeking new landscapes, but in having new eyes.” – Marcel Proust
Will May’s Capitulation Sink the Pound?
Either Prime Minister May skipped class at Oxford when they were discussing the art of negotiation, or she never liked the idea of Brexit in the first place (we know the latter applies). One only need witness the jubilation from the European Union after the “deal” was announced Friday morning to infer PM May caved in a very big way.
Of course, the so-called “business community” in the UK is said to be happy about the deal. This is the same community which was in lock-step against Brexit in the first place. The same business community (the world over) led primarily by well-connected and “well-educated” grey mem who lack historical perspective and a principled life philosophy. But what these grey-men lack in perspective and irony (have you ever read a book written by a CEO; Proust is rolling in his grave musing on such tragedy), is made for by their ability to value executive stock options against next quarter’s forecasted business activity.Would it be a stretch to say once again the sovereign will of the people has been thwarted yet again? I am going with yes, but time will tell. And therein lies the problem for UK financial markets in general, and the currency in particular, this socalled “deal” may be hailed as providing a degree of clarity, but given the devil is in the details, this socalled “deal” seems to add more risk and uncertainty.
What is the next step? Will UK reinstitute the EU regulatory scheme for toasters and tea kettles? Will its fishing fleet, already devastated by sushi-eating white-wine sipping barista-buddies based in Brussels, be sunk again (apologies to fellow sushi lovers, but I thought it was a nice fit in that sentence)? Will this deal with the EU preclude unilateral deals between the United States and China, or drastically delay them? Is it smart to re-hitch yourself to a wagon whose wheels may falling off a la Spain splintering, Italy being Italy, and Germans possibly catching on to the damage caused by Ma-Merkel’s radical immigration policy?