“A nation becomes too big when it can no longer provide its citizens with the services they expect – defence, roads, post, health, coins, courts and the like – without amassing such complex institutions and bureaucracies that they actually end up preventing the very ends they are intending to achieve, a phenomenon that is now commonplace in the modern industrialized world." The answer to the ‘too big’ problem lies not in ever greater union, but in division.
8 in 10 "Yes" voters said they were motivated more by 'hope' than 'fear'. 6 in 10 "No" voters said they were motivated by 'fear' of independence and the "No" vote was almost entirely secured by overwhelming support from those aged above 55. So in a nutshell, old people filled with fear blocked independence. Going forward, the older generation problem will naturally resolve itself. So we know that the youth will be deciding the future. Thus, the real question becomes, what will influence the youth?
Given the scale of indebtedness in the UK and still very high current account deficit, the pound remains vulnerable to a currency crisis. George Soros and others may still be sizing up another opportunity to break the Bank of England. Another run on the pound has been postponed ... for now ...
It has been quite an eventful week between Scotland's battle over independence, the Federal Reserve's FOMC announcement and the markets making new all time highs. The FOMC announcement was more comedy than anything else as the continued facade of the Fed's forecasting capabilities was revealed, it appears the biggest factor in the world of investing and for this weekend's list of "Things To Ponder" we have accumulated a few reads relating to the Fed.
While Scotland was busy concluding the count of its votes for or against independence, Royal Air Force fighter jets based out of the northern Scottish base in Lossiemouth in Moray, were scrambled to identify and intercept two airplanes which subsequently were revealed to be Russian Tu-95 Russian "Bear H" strategic bombers, that were spotted in international airspace although the exact location of the encounter has not been disclosed. As the RAF later clarified in a statement, the aircraft did not enter UK airspace.
- Scots spurn independence in historic vote but demand new powers (Reuters)
- Salmond’s Journey as Scotland’s Leader Ends Short of Destination (BBG)
- European Stocks Rally to 6 1/2-Year High on Scottish Vote (BBG)
- Jack Ma Planning Personal Roadshow With Clinton to Immelt (BBG)
- Some consumers say Apple is losing its 'cool' factor (Reuters)
- Gold IPhones at $3,600 as China Delay Fuels Black Market (BBG)
- This Man's Job: Make Bill Gates Richer (WSJ)
- Mom-and-Dad Banks Step Up Aid to First-Time Home Buyers (BBG)
- France says it launches first air strikes in Iraq (Reuters)
So much for any Scottish referendum vote "surprise": the people came, they voted, and they decided to stay in the 307-year-old union by a far wider margin, some 55% to 45%, than most polls had forecast, even as 3.6 million votes, a record 85% turnout, expressed their opinion. The gloating began shortly thereafter, first and foremost by David Cameron who said "There can be no disputes, no re-runs, we have heard the settled will of the Scottish people." Queen Elizabeth II, who is at her Scottish castle in Balmoral, is expected to make a rare comment on Friday. But while a No vote was where the smart betting money was ahead of the vote anyway, and is thus hardly a surprise, the most curious thing overnight was the complete roundtrip of cable, which was bought on the rumor and then sold off on the news, roundtripping by nearly 200 pips.
As the World anxiously awaits the results of today's Scottish Referendum for independence from The United Kingdom, we thought a little context on just how many 'nations' have left over the last 238 years...
- Thank you market Chief Risk Officer Bernanke/Yellen: Calpers to Exit Hedge Funds, Divest $4 Billion Stake (BBG)
- World stocks hit one-month low, caution ahead of Fed (Reuters)
- U.S. Efforts to Build Coalition Against Islamic State in Iraq, Syria Are Hampered by Sectarian Divide (WSJ)
- Time to throw away some more good money: Sears Borrows $400 Million From Lampert’s ESL Investments (BBG)
- Wildfires rage in California drought, hundreds forced to flee (Reuters)
- United Offers $100,000 Buyouts to Flight Attendants (BBG)
- Biggest Banks Said to Overhaul FX Trading After Scandals (BBG)
- You mean you have to pay? Administration threatens to cut off ObamaCare subsidies to 360,000 (The Hill)
- RBS Said to Dismiss Most of Team Overseeing Central Europe Debt (BBG) they will be hired by the ECB
"There's nothing to be optimistic about," warns the professor who developed the Global Epidemic and Mobility Model to assess outbreaks, "if the number of cases increases and we are not able to start taming the epidemic, then it will be too late. And then it requires an effort that will be impossible to bring on the ground." As FredHutch reports, the deadly Ebola epidemic raging across West Africa will likely get far worse before it gets better, more than doubling the number of known cases by the end of this month, predicting as many as 10,000 cases of Ebola virus disease could be detected by Sept. 24 – and thousands more after that. “The cat’s already out of the box – way, way out," as the analysis of global mobility and epidemic patterns shows a rougly 25% chance of Ebola detection in the UK by the end of September and 18% it will turn up in the USA. "I hope to be wrong, he concludes, but "the data points are still aligned with the worst-case scenario."
US Industrial Production and the NY Fed Empire State Manufacturing survey are the two main releases for the US. In Europe, the euro area trade balance will be the notable print. Beyond today, US PPI, German ZEW and UK CPI are the main economic reports tomorrow. Wednesday will see the release of BOE’s meeting minutes, the US CPI, and the Euro area inflation report. On Thursday, President Obama will host Poroshenko and on the data front we have Philly Fed, initial claims, and building permits to watch out for, but the biggest market moving event will surely be the Scottish independence referendum. German PPI will be the key release on what will otherwise be a relatively quiet Friday.
- Snow is coming: OECD Cuts Economic Growth Forecasts (WSJ)
- World waits for white smoke from U.S. Fed (Reuters) - Understandable error: they meant "green"
- Scots Breakaway at 45% Odds as Economists Warn of Capital Flight (BBG)
- Ukraine President Poroshenko Faces Backlash Over EU Trade Deal Delay (WSJ)
- German Anti-Euro Party Advances in Merkel Homeland Voting (BBG)
- Clinton Hints at 2016 Run as Super-PAC Packs Iowa Steak Fry (BBG)
- Air France, Lufthansa Hit by Strikes in Fight for Future (BBG)
- U.S. sees Middle East help fighting IS, Britain cautious after beheading (Reuters)
- Ex-Billionaire Charged by Brazil With Financial Crimes (BBG)
Friday saw the largest demonstration in the history of Barcelona with 1.8 million people showing up, exceeding all previous records, calling for Catalan independence... and as Deutsche Bank warns "Catalonia matters!" seeing four key scenarios.
As Scotland goes to the polls to decide on its own separation from the United Kingdom, the tone of the campaign is high on passion and secessionists are inching toward the magical 50 percent line. One core debate is whether Scotland is too small and too insignificant to go it alone... The answer, perhaps surprisingly, is resoundingly “Yes!” Scotland’s big enough to “survive” on its own, and indeed is very likely to become richer out of the secession. Nearer to the small-is-rich Ireland than the big-but-poor Britain left behind.
There is now less than one week of campaigning remaining before the Scottish Independence Referendum, which takes place next Thursday, September 18.
The pro-union ‘no’ vote campaign is back in the lead this week after the latest opinion poll from pollsters YouGov put them at 52%, marginally ahead of the pro-independence ‘yes’ campaign.