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Published on The Doomstead Diner on June 24, 2016





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Unbelievably, INCREDIBLY, the Brits Voted for BREXIT, aka divorcing from the European Union.


As this campaign went on over the last few months, the Brexit Champions seemed to be gaining the upper hand, and as of about a week ago I thought Brexit would win over Bremain.


But then, by SHEER COINCIDENCE, something happened.  A Brit MP, Jo Cox was ASSASSINATED, with the Assassin reportedly crying BRITAIN FIRST or something like that anyhow before he shot and stabbed her to death.  Not quite ALLAHU AKBAR! but similar enough to turn off people to voting for Brexit if this reminded them of Terrorist Tactics.


Campaigns were suspended for 3 days on both sides, and although there was some variation in the Polling, the tactic appeared to have WORKED, and the major Polling companies began reporting that Bremain would win.


Global Markets breathed a sigh of RELIEF, and after being hammered for a few weeks the Pound Sterling began to recover.  The markets calmes, all would be well, BAU would continue onward.


However, in the driving rain and flooding in many locations, with Polling locations having to be moved due to the weather issues, the Brits still turned out to vote, and in the end, the Brexit crowd won the day.


Tomorrow, and all of next week as well will see complete TURMOIL in the Financial Markets as well.  Nobody is certain of the repercussions, other than at least at the beginning the financial markets both in Britain and Europe will get positively HAMMERED.


At the same time though, just a Vote by the population at large to dissolve this marriage doesn't instantaneously dissolve all their financial entaglements, any more than when you get a divorce the financial entaglements with your spouse instantly dissapear.  In fact, it is orders of magnitude WORSE in a case like this, with "International Law" and "International Treaties" all involved.  Not just a few, hundreds if not thousands of laws and contractual agreements are on the chopping block here, and each one of them can run into hundreds if not thousands of pages of Legalese.  So what you will have here is a long and interminable set of court cases being held, and trust me the people who voted for Brexit will have no say whatsoever in how those cases are adjudicated.  What comes out at the end of it a few years down the line is a complete mystery, although if BAU ontinues, you can expect the result to benefit the Trnasnational Corporations rather than the people of Britain.


On Sunday here on the Diner on our Collapse Cafe discussion, we will be getting together with a few of the Diner Brits to discuss the outcomes and possible future resultant from the Brexit Vote.  We will go off LIVE @ High Noon Alaska Time, 4PM Eastern Time, 9PM Brit Summer Time.  Be there, or be Square.

RE:
...and so it BEGINS!

RE

http://www.zerohedge.com/news/2016-06-24/worse-lehman-european-bank-bloodbath-sparks-dollar-funding-crisis

"Worse Than Lehman" - European Bank Bloodbath Sparks Dollar Funding Crisis by Tyler Durden Jun 24, 2016 11:26 AM 65 SHARES Twitter Facebook Reddit For European banks, today is worse than Lehman with a 13%-plus collapse in the broad index. The major banks - like Credit Suisse and Deutsche Bank - have crashed over 15% to record lows as "Lehman moments" loom. This crisis prompted massive demand for USDollars, sending basis swaps (and other funding vehicles) spiking which it appears is why The Fed said it was ready to provide liquidity. The broad EU banking system is collapsing...   Led by the majors...     Raising "Lehman moment" alarms again... And sparking desperate demand for USDollars...   And Sterling was sold hard into the European close (down 200 pips)     As counterparty risk looms again... Which explains why The Fed stepped up already with swap lines... Earlier today we said that it was inevitable that the Fed would join the world's other central bankers in providing backstops to global markets, the only question is whether it would take place before or after the open. We now have the answer. Before.
The Federal Reserve is carefully monitoring developments in global financial markets, in cooperation with other central banks, following the results of the U.K. referendum on membership in the European Union. The Federal Reserve is prepared to provide dollar liquidity through its existing swap lines with central banks, as necessary, to address pressures in global funding markets, which could have adverse implications for the U.S. economy.
--- End quote ---
Because free, impartial, efficient, and unmanipulated markets.  Also we can finally stop holding our breath on those two Fed rate hikes which the FOMC anticipates in 2016. And then Lagarde confrmed:
* *LAGARDE REITERATES SUPPORT FOR C.BANK LIQUIDITY READINESS

RE:
Who could have expected this?   ::)

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http://www.businessinsider.com/eu-officials-britain-brexit-theresa-may-2016-7?r=UK&IR=T

'They have to sort themselves out': Why a Brexit won't happen for a very long time

    Adam Payne


German Chancellor Angela Merkel and British Prime Minister Theresa May address a news conference following talks at the Chancellery in Berlin, Germany July 20, 2016. REUTERS/Stefanie Loos
Britain simply is not prepared to even begin negotiating the terms of a Brexit and it should not expect to officially withdraw from the European Union until at least 2020, according to various EU officials.

Prime Minister Theresa May is under pressure from Leave MPs to deliver a Brexit as soon as possible. Pro-Brexit ministers like Liam Fox and David Davis have said that Article 50 — the official two-year process of leaving the 28-nation bloc — would begin as early next year.

However, EU diplomats have ruled this out amid the reality that a number of major hurdles are likely to severely delay the process.

One of these is the fact that nobody is entirely sure what the terms of Britain's departure from the EU will be.

"They [Britain] have to sort themselves out,"an EU diplomat at the centre of Brexit preparations told the Financial Times. "They come from London and they don’t know what they want. They don’t know what their government wants, what their parliament wants. They have not prepared.”

Another senior European diplomat said: “We’ve not even worked out what all the questions are, let alone found the potential answers." The current lack of consensus over what "Brexit" actually means isn't the only issue facing May, though.

Firstly, European Parliament elections are set to take place in 2019, where a brand new assembly will be elected with the power, in theory, to veto Britain's proposed Brexit terms. This means a Brexit could face a major roadblock even if May and her government are successful in working to a fast-track timetable.

Secondly, there is the well-documented issue of just how complex the process of negotiation will be."For all sorts of reasons we will want to finish this all before the June 2019 elections," a senior EU official told the Financial Times. "But that will be very, very tight. The complexity is vastly underestimated unless you want to be brutal and cut off ties.”

These warnings from EU diplomats come as a Conservative peer said on Monday that the House of Lords would likely delay Article 50 being triggered if a bill was put before parliament.

"If it comes to a Bill, I think the Lords might actually delay things. I think there's a majority in the Lords for remaining," Baroness Patience Wheatcroft told The Times newspaper.

"I would hope, while we delayed things, that there would be sufficient movement in the EU to justify putting it to the electorate, either through a general election or a second referendum."

The task facing Theresa May in delivering a Brexit seems to be getting more difficult with each day that passes. Business Insider has already noted how Leave voters shouldn't be sure about her "Brexit means Brexit" promise and why a Brexit might not actually happen at all.

Palloy:

--- Quote ---The complexity is vastly underestimated unless you want to be brutal and cut off ties.
--- End quote ---

Brexit means "cutting off ties" - it couldn't be simpler.  The author wants to make it seem difficult, but it's not.  The House of Lords can't block legislation, only delay it a couple of days.  Teresa May won't last long if that's her attitude, which isn't clear from this biased account.  Once the ties are cut, then they can start on a new arrangement.

RE:

--- Quote from: Palloy on August 02, 2016, 12:46:50 AM ---
--- Quote ---The complexity is vastly underestimated unless you want to be brutal and cut off ties.
--- End quote ---

Brexit means "cutting off ties" - it couldn't be simpler.  The author wants to make it seem difficult, but it's not.  The House of Lords can't block legislation, only delay it a couple of days.  Teresa May won't last long if that's her attitude, which isn't clear from this biased account.  Once the ties are cut, then they can start on a new arrangement.

--- End quote ---

The issue is, all the MPs are being heavily lobbied to "explain" to them how difficult this would be and how HORRIBLE it would be for them and their investments and paychecks once a Brexit really goes through.  So when caucusing to decide on some "plan" for Brexit, the MPs cannot themselves come to an agreement on ANYTHING, thus they have nothing to present to the EU as a consensus group opinion.  They simply do not KNOW what they want, or how to achieve it.  Not surprising because about anything they want is NOT achievable.

RE

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