Quote (dro94 @ 24 Jun 2016 16:25)

im not the sort of guy that counts

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The only man with a plan is Germany’s finance minister. Schäuble recognises in the post-Brexit fear his great opportunity to implement a permanent austerity union. Under his plan, eurozone states will be offered some carrots and a huge stick. The carrots will come in the form of a small eurozone budget to cover, in some part, unemployment benefits and bank deposit insurance. The stick will be a veto over national budgets.

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If I am right, and Brexit leads to the construction of a permanent austerian iron cage for the remaining EU member states, there are two possible outcomes: One is that the cage will hold, in which case the institutionalised austerity will export deflation to Britain but also to China (whose further destabilisation will have secondary negative effects on Britain and the EU).

Another possibility is that the cage will be breached (by Italy or Finland leaving, for instance), the result being Germany’s own departure from the collapsing eurozone. But this will turn the new Deutschmark zone, which will probably end at the Ukrainian border, into a huge engine of deflation (as the new currency goes through the roof and German factories lose international markets). Britain and China had better brace themselves for an even greater deflation shock wave under this scenario.

Quote (cambovenzi @ 24 Jun 2016 11:54)

funny how all the rah rah democracy folks all of a sudden dont like it.

Quote (GetOnYourKnees @ 24 Jun 2016 23:47)

Entitled kiddies are crying cos they don't think the older generations should get a vote :lol:

Quote (WNxIrvine @ 24 Jun 2016 19:29)

So after 24 hours of panic (which was expected) anyone have the figures for the FTSE 100 and £ rates at closing?