In These New Times

This is essential background for understanding the EU referendum and particularly the rather surprising decision by Cameron to support a “Yes” vote despite having no opt-out on European banking regulations. But a “No” vote would be even worse from a City point of view as this article makes clear. Still, there will be winners and losers and clear and bitter divisions are emerging in the British  ruling class which we haven’t seen since the period following the “loss” of the USA in the American Civil War by way of the defeat of the Confederacy. That period of internecine warfare in the British elite was eventually resolved by the expedient of outsourcing the empire via a truly massive flow of capital into the USA. Similarly, today we face a historic transformation of the City of London although, this time,  based on massive capital inflows through our Comprehensive Strategic Partnership with China and the new relationship with Europe which corresponds to it. The strong support for a “Yes” vote by Goldman Sachs and JPMorgan suggests the possibility that London could also serve as a conduit to Wall Street for Chinese investment via those chosen vehicles.

Gefira

19th February, 2016

If London decides to leave the European Union nobody in Europe will even notice. Great Britain is an entirely separate country, isolated from the European Union and does not participate in the Euro or Schengen Agreement. The European Union as a political platform is disintegrating and becoming more and more irrelevant and will be displaced by the European Monetary Union (EMU).
The center of power in Europe has shifted from the EU to the EMU and London politicians are fully aware of it. A Brexit will accelerate the process of political integration of the EMU members and make the EU politically less significant.

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