European Union

"Back Into The Hurricane" - Doug Casey Warns "Gold Will Go Higher Than Most People Can Imagine"

"While we’ve spent the last several years in relative peace and calm inside the eye of the storm, we’ll be entering the other side of the hurricane wall later this year... It’s going to take gold a lot higher than most people can imagine at this point... I think $5,000 gold will happen at some point because we’re looking at a worldwide monetary crisis of historic proportions."

The Brexit Reaction Is The Reason Brexit Happened

It doesn't mean much to be against torture until the moment when you're most tempted to resort to it, or to have faith in voting until the result of a particular vote really bothers you. If you think there's ever such a thing as "too much democracy," you probably never believed in it in the first place. And even low-Information voters can sense it.

"Death To All Zombies!"

When things fall apart in stressed complex systems, they tend to fall apart fast. It’s called phase change. Too many things in 21st century life have depended on sheer trust that the people-in-charge know what they are doing. That trust has subsisted on the doling out of money-from-nothing: debt, reckless bond issuance. TARP, QEs, bailouts, bail-ins, Operation Twists, Ponzi schemes… the whole sad-ass armamentarium of banking necromancy. The politicians let it get out of hand. Things that can’t go on don’t, and now they won’t.

10 Ways The UK Could Leave The EU

Stalemate between Britain and the European Union over what happens next following Britons' referendum vote to leave has opened up a host of possible scenarios. Here are some that are (in some cases, barely) conceivable...

Yellen, Carney Pull Out Of ECB Forum In Portugal

How do you know that "things are getting serious"? Well, one way as Jean-Claude Juncker explained before, is that "you have to lie." Another is when central bankers start withdrawing from cental bank gatherings, which as Reuters reported is what both Mark Carney and now Janet Yellen have done, in this case pulling out of the ECB Forum on Central Banking that starts today and lasts through Wednesday.  Clearly they have bigger things on their plate...

Soros Suffers Major Loss On Long Pound Trade Ahead Of Brexit

It is somewhat ironic that the man who made a $1.5 billion profit on Black Wednesday in 1992 when he bet against the pound sterling ahead of the UK exit from the ERM would be the same one to suffer major losses on the same currency 24 years later.  According to Bloomberg, Soros was long the pound before Britain’s vote to leave the European Union on Friday, and didn’t “speculate against sterling while he was arguing for Britain to remain,” a spokesman said in an e-mailed statement Monday. In other words, Soros did put his money where his Op-Ed was.

Frontrunning: June 27

  • After ‘Brexit’ Vote, Europe’s Leaders Debate Timing of U.K.’s Departure (WSJ)
  • Pound Slumps, Banks Tumble on Brexit Fallout; Bonds Extend Gains (BBG)
  • To Brexit or Regrexit? A dis-United Kingdom ponders turmoil of EU divorce (Reuters)
  • ‘Brexit’ Sparks Political Turmoil Across U.K. (WSJ)
  • 10 ways to leave EU lover; scenarios for Brexit (Reuters)
  • The $100 Trillion Bond Market’s Got Bigger Concerns Than Brexit (BBG)

UK Chancellor Osborne Breaks Silence, Fails To Calm Markets; Says In No Rush To Trigger Article 50

While the global market eagerly awaits outgoing UK PM David Cameron's address to Parliament on Monday after a weekend of political turmoil that left Britain looking rudderless following the shock vote to leave the European Union, this morning Chancellor George Osborne made his first statement since the EU referendum in a bid to calm the turmoil in financial markets that has followed the UK’s vote to leave the EU last Thursday.

European Stocks, US Futures Extend Slide On UK Chaos, Pound Carnage

With global asset correlations once again approaching 1, overnight stocks have been trading in broadly "risk off" mode, following every twist of pound sterling and the rapidly deteriorating British financial situation as "chaos infects" virtually all markets, from China, to European banks, to US equity futures.  As a result of ongoing aftershocks from the Brexit vote, coupled with the sudden political chaos in UK politics, where both parties now seem in disarray, with the pound has extended its selloff to a fresh 31-year low dropping below the Friday lows while European equities are dropping to levels last seen in February.

Understanding Brexit: The Powerless Press Their Thumb In The Eye Of The Power Elite

Will Brexit hurt the classes that did not directly benefit from E.U. membership? Perhaps. Perhaps it was not in their self-interest to vote for Brexit. But the immeasurable pleasure in depriving the Power Elite of their "democracy" legitimacy was worth any potential sacrifice. The sense of having a real say, and possessing actual agency, is very empowering, and very rare, for members of the lower-middle class and the working class today.