There was a reason why we warned readers two days ago that "The World's Central Bankers Are Gathering At The BIS' Basel Tower Ahead Of The Brexit Result": simply enough, it was to facilitate an immediate response when a worst-cased Brexit vote hit. And that is precisely what has happened today in the aftermath of the historic British decision to exit the EU. It started, as one would expect, with Mark Carney who said the Bank of England is ready to pump billions of pounds into the financial system as he stands at the front line of Britain’s defense against a Brexit-provoked market crisis.
With knife-catching "value" investors proclaiming yesterday that any dip today would be an opportunity, it appears once again that faced with the reality of Brexit blowback, no one (not even the central banks) are buying the f##king dip). As Bloomberg's Mark Cudmore exclaims "Don't be a hero," to those value-investors, warning that "most of the market is still in denial."
Well that escalated quickly...Speaking from in front of 10 Downing Street, UK PM David Cameron just stated that he will step down as Prime Minister, explaining that "I think the country requires fresh leadership."
Bonds & Bullion are manically bid overnight as the last 5 days of complacent risk-on exuberance has collapsed into a worst-case-scenario "Brexit" raising doubts about the EU's sustability and dragging central bank experimental ideas into farce...
Unfortunately, the battle is not over. A key question remains: Is Cameron an even bigger liar than we all know?Now that the vote is in, I fully expect all the other liars, notably French president Francois Hollande and German Chancellor Angela Merkel to propose a second vote with added sweeteners. Also note the Brexit vote is not legally binding. Cameron could easily resign, leaving this up to the next parliament to decide.
Even U.S. military officials have said that these sorts of no-fly or no-bomb guarantees Flournoy is promising - which Hillary Clinton herself has previously advocated - would risk a military confrontation with Russia. Obama’s defense secretary, Ash Carter, told a Senate hearing last December that the policy Clinton advocates “would require ‘substantial’ ground forces and would put the U.S. military at risk of a direct confrontation with the Syrian regime and Russian forces.”
Just as we warned, the historic British rejection of the EU's totalitarian rule has sparked renewed ambitions to leave the clutches of Brussels across Europe. First to congratulate Britain was Holland's Geert Wilders, who calls for a Dutch referendum as soon as possible...