London or Frankfurt , Boris knows too well!

London or Frankfurt, where will Europe's financial heart beat be loudest?

London or Frankfurt, where will Europe’s financial heart beat loudest?

This morning I had an epiphany! You know when you have been pondering a subject matter for a long time and you just can’t make head or tail of it. Then suddenly the ‘eureka’ moment. I am talking of course about what some call my obsession with Britain’s attitude towards Europe. Specifically the rise of Euroscepticism and Cameron’s pathetic response to try to placate his Tory backbenchers whose constituents are defecting in droves to the populist United Kingdom Independence Party.

In my previous blog post I lamented “what is your big idea on Europe David” ? But try as I might I certainly couldn’t find anything ‘big’ in Cameron’s long awaited Europe speech! Then it struck me that @Number10gov just might be doing another bit of ‘burying bad news’.  So I looked for clues between the lines, but it was there staring me in the face all along:

“Britain is not in the single currency, and we’re not going to be. But we all need the eurozone to have the right governance and structures to secure a successful currency for the long term.

And those of us outside the eurozone also need certain safeguards to ensure, for example, that our access to the single market is not in any way compromised”

Cameron is not looking for reforms at all! He is feeling the wrath of the City of London and the hot breath of Boris in his neck! London’s mayor has said all along:

“We can no longer blame Brussels. This is perhaps the most important point of all. If we left the EU, we would end this sterile debate, and we would have to recognise that most of our problems are not caused by “Bwussels”, but by chronic British short-termism, inadequate management, sloth, low skills, a culture of easy gratification and under-investment in both human and physical capital and infrastructure.”

And what was this ‘short term’ mistake, a mistake so obvious, yet no Tory would dare speak of ? ‘Not joining the Euro’ is where my bet would be. Not signing up for it, when the chance was there in 1995 at the Maastricht treaty. Instead securing an ‘opt-out’ for the British Pound Sterling. A coin #ukip types are so fond of they think it is a symbol of ‘Britishness’; they even have tacky ties and tie pins made of them.

ukipshop

“Now hang on a minute”, a lot of British Eurosceptics will butt in, ” isn’t the Euro supposed to be this huge disaster that our politicians saved us from?”

Well actually, the markets that these same types are so fond of tell a quite different story. They seem to be of the opinion that anything that doesn’t kill the Euro only makes it stronger! This is perhaps why WikiPedia reliably informs us

The euro is the second largest reserve currency as well as the second most traded currency in the world after the United States dollar.[6][7][8] As of November 2013, with more than €951 billion in circulation, the euro has the highest combined value of banknotes and coins in circulation in the world, having surpassed the U.S. dollar.[note 14] Based on International Monetary Fund estimates of 2008 GDP and purchasing power parity among the various currencies, the eurozone is the second largest economy in the world.[9]

eurodollar

The markets don’t seem to see the Euro as a disaster?

 

For any British politician to admit the country made a mistake not joining the Euro would of course be political suicide. That doesn’t hide their Prime Minister’s pain and anguish he feels now the core Eurozone countries are pulling closer together, in effect creating a two tier Europe. An EU where Britain is left out at important decision making meetings. This seems to be Cameron’s hopeless mission: Finding a way that “those of us outside the eurozone”  do not end up discovering we have shot ourselves massively in the foot, or in Britain’s case painfully in the middle of it’s important financial services industry and City heartland. So is it any wonder Major Boris Johnson is starting to plan for a City post #brexit and tries to put a brave face on it?

Will the Eurozone leaders take pity on David Cameron and throw him a bone? He is not going about creating sympathy and allies in a great way as succinctly pointed out by Rem Korteweg writing for the German Council on Foreign Relations. So ‘not stupid’ Boris has seen the writing on the wall and commissioned a report of his own with a distinct positive spin on life after #brexit to save his rear side. He knows only too well, that the big financial institutions that lease his London skyscrapers can pack their bags and move to Frankfurt at the flick of an internet router.

That is the risk you run if you destroy a country’s proud manufacturing industry and think the froth of the banker’s cappuccinos in the City is something anyone outside London really cares about.

 

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About lasancmt

Passionate about Identity Management Disgusted at #ukip and #brexit
This entry was posted in #brexit, EU, UKIP, Uncategorized and tagged . Bookmark the permalink.

4 Responses to London or Frankfurt , Boris knows too well!

  1. Les says:

    The problem with the Euro is that is was not created to provide harmonised currencies, simplified trading etc, as went the lie when it was invented. It was created as a step on the road to a federal Europe, a United States of Europe.

    The trouble is, this convenient tool is hopelessly flawed. The only way a country can control its economy is by having control of its own currency. Unfortunately, for countries like Greece, they cannot hope to function properly, bolted as it is to the same currency as the economic and industrial powerhouse economies such as Germany. Now, we all know Greece has always been pretty cavalier with its economy and everything else. But the fact remains, it cannot fix anything if it cannot tweak its economy.

    Now they suffer the humiliation of having policies “installed” by the EU over which the Greek government and therefore its people have no say. Not that the EU is any stranger to this kind of action. Many will remember the EU’s attitude to Eire’s famous referendum; they were simly told this was the wrong answer and to go away and do it all again … a sign that the far-left are firmly in control of the EU.

    But, the machine rolls on. No refusal to comply with the will of the European Commission will be entertained. This suits the Communists, many of who occupy senior positions within the EU, but it doesn’t suit countries that treasure their democracies.

    Getting back to the Euro, the economies of the Eurozone are in decline, even Germany’s has stalled, whilst the UK’s is seeing improvement. The EU GDP, despite the number of member states growing sharply, is in decline.

    The control of trading policies for every member states, does not help with this declining GDP and the Eurozone’s problems are only just beginning. Italy, Spain and Portugal’s economies are also very weak; The Greek economy is relatively small and if any of the afore-mentioned economies should falter, there just isn’t enough money in the system to prop up the Euro.

    The fanatics that run the Euro have the wrong priorities. The aim is to build their dream of a United States of Europe, no matter what the cost and no matter what the people’s of the European continent want. The people are but a minor irritation to the architects and masters of the EU. They waste huge amounts of money and the whole organisation is riddled with corruption.

    I am only glad the UK pulled back from the precipice of the Euro at the last minute, or we too would be dragged down into the abyss, which is where the EU and its Euro is headed. All that remains for the UK now, is to divorce itself from this self-obsessed club.

    • lasancmt says:

      Congratulations Les @ThisSepticIsle for being the first kipper to post some coherent counter comments on this blog! First I would like to point out that you conveniently ignore the central premise of my post, namely that joining the Euro would have been good for the City of London, as it would have played to its strength of being actually rather good/successful in financial services. In other words a golden opportunity missed and an ‘own goal’ for team GB.

      Instead you labour the point out what a disaster it has been for Greece. For the common Greek in the short term this may be so. But I am not the first to point out the counter argument that for Greece corrupt politicians to keep devaluing the Drachma while they squirrel away their ill gotten gains in Monaco in the long run does not benefit Greece’s youth either. Sometimes a rotten tooth has to be pulled, unless you don’t mind the constant pain and stinking from your mouth.

      You also haven’t argued why the Euro is such a disaster. Here you default to the usual #ukip wishful thinking?

  2. I’m afraid I don’t buy into the idea that the reference to short termism was based around the Euro, since we could enter the EU tomorrow. Or, strictly speaking, even today! However, I wouldn’t recommend it to an incumbent party. Based on the fact people like Eric Pickles declared that our birth certificates would have the royal crest expunged based purely on prejudices instilled by having the colour of his passport changed some 20 years ago, I am not convinced that entering the Euro would have be a successful act of political long termism.

    This country has never been ready to enter the Euro, and it’s telling that the Scotland independence camp are selling a Scotland in Europe retaining the Great British Pound. It is, therefore, my firmly held belief that, had we entered into the Euro under Gordon Brown, then the banking crash would have been the tipping point of resentment to the currency, and we would now be back with the pound, and out of Europe. No doubt following an illogical isolationist policy based purely on the emotive opinion of a Eurosceptic Britain.

    I do, however, buy your argument that it wouldn’t have been a bad thing to go into it monetarily, but there were few countries that did not decry joining it during the financial crisis. Having control of the pound provided our country finer grain economic controls than were available to those in the Euro. As such, it could equally be argued that going into the Euro could have been short termism, and the long term solution would be the more adaptable in different future financial scenarios.

    So the reality is, yes, it may have been a good thing to go into the Euro, but as with everything else, there is an equal amount of rough to take with the smooth. There isn’t a right answer, or a wrong one, just a position to take. There are advantages and disadvantages on both sides.

    It certainly could be argued that having a separate monetary unit in the Eurozone, whilst providing freedom of movement, doesn’t make a great deal of sense. Especially since that currency is being maintained by the only country whose first language is also the second language of a considerably large number of people within the zone. The strength of the pound could cause mass migration, and a weakness could result in a brain drain. With reference to recent ukip election campaigns, there is, and not without a deep sense of irony, an argument to be made that some of the negative bias towards the EU has been created by a climate that is the product of not being in the Euro.

    These are problems and issues that David needs to take to the EU, and let us be clear, not necessarily with any requirement to get change. It is vital that the nations in the EU share their problems and seek a resolution if the organisation is to be successful. Contrary to the belief of the Europhile, it is not some altruistic representation of a wider super state, neither is it a group of Left-wing power hungry people who are seeking to create some kind of single state utopia, as the Eurosceptic would have us believe. It is an organisation, and must remain flexible if it is to prosperously carry out the purpose it was created for. Although its equally important that people realise that not getting what you want isn’t necessarily evidence of inflexibility, and if seeking these resolutions does result in Britain being left out of decisions, then the impact of that can be weighed against our position in future elections, and EU elections, to come.

    So in conclusion there are objective economic arguments that can be made for and against the Euro, but the political arguments in terms of the will of the people, and the inevitable negative reaction to Europe, make the pound a clear winner as things stand today. If that comes at a cost, then this nation will always be in a position to weigh that up and decide if it is worth it.

  3. lasancmt says:

    Seems the pre #brexit exodus of banks from the City of London is already starting. Ok here we are talking Ireland and not Frankfurt but the effect remains the same.
    Kippers stick their heads further in the sand.
    http://www.ft.com/intl/cms/s/0/9b555ed6-25f1-11e4-8bb5-00144feabdc0.html?siteedition=intl#axzz3Ag7qodPi

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