Tag Archives: BREXIT

May 23 2019

British Elections


Armstrong Economics Blog/BRITAIN

Re-Posted May 23, 2019 by Martin Armstrong

Nigel Farage’s Brexit Party is poised to dominate the upcoming European elections in the U.K., according to spread betting firm Sporting Index. Nigel appears to be leading with his new party to take 28 seats. Prime Minister Theresa May’s Conservatives will win perhaps seven and Labour will take 13 with the Liberal Democrats coming in at about 12 seats. Of course, the Sporting Index predictions have been consistently wrong on their forecasts. As Nigel pointed out at the WEC in Rome, we were the only ones who got it right.

They made a forecast that was good on the trend. About two hours before the vote on May’s Brexit deal, the spread betting firm forecast she’d lose by 60 votes. She was defeated by 58. The Guardian ran the headline:

Don’t bet against the Brexit party winning the EU elections

The complete mess that PM May has created over BREXIT is just indescribable. She is determined to accept Brussel’s demands regardless of the consequences. She has even admitted that she could give into Labour’s demands to stay in customs union. Her entire policy seems to be to push it to the end and hope that the choice between a hard exit and her way will end with her victory. This has been a very dictatorial approach. PM May offered lawmakers a vote on whether her Brexit deal should be subject to a referendum, in a last-ditch bid to save it. Last time MPs voted on a second referendum, there was just a 12- vote difference, with 280 backing a confirmatory vote on a deal and 292 because Parliament is dominated by those who are against BREXIT as is PM May. This rising fear is that Senior Labour MPs are talking behind the curtain urging that Jeremy Corbyn should vote for a second referendum or face an unequivocal victory of Nigel Farage in the European elections.

May 23 2019

Rethinking Economics


Armstrong Economics Blog/Economics

Re-Posted May 23, 2019 by Martin Armstrong

The BBC wrote a piece on the failure of economics. “Many non-economists will say that the economists must have been stupid not to realise what was wrong with their subject. All that I’ve set out here should have been obvious,” the article commented. Indeed, the field of economics has been really a disaster because people are still trying to manipulate it and create the land of Utopia. They assume the power to control and eliminate the business cycle exists, which began with Karl Marx.

We have people focusing on the disparity of income who argue that is the whole problem. Nobody seems to have a mirror or is willing to just look at themselves. Nobody will even question why governments are borrowing year after year with no intention of ever paying anything off. We constantly have fights over raising debt ceilings that will always have to be raised. The question is never asked: “Do we have to revise both the monetary system and the political system to prevent massive civil unrest?” This battle waged by the left to subjugate the right only leads to violence.

May 22 2019

LAGOM – “Just the Right Amount” & European War


Armstrong Economics Blog/European Union

Re-Posted May 22, 2019 by Martin Armstrong

QUESTION: Hi Martin,

The Rome WEC was a real eye-opener for me. Thank you for coming over to Europe. Especially the reports you released in advance of the conference. “The Fate Of Europe” pdf was especially informative. You’re explaining the structural defects of the EU make it clear it really is a doomed project, and just a matter of time before it, helped along by the ECB, descends into chaos.

Upon arriving home in Sweden I noticed this poster for a Swedish MEP candidate.

”Lagom” is the Swedish notion of the middle way. Not too much, not too little. Basically, blending in and being inoffensive. On the one hand, it’s cute, on the other hand, it’s sad. He’s clearly passionate about his political philosophy, but even if elected, there is Juncker, Tusk, and Verhofstadt waiting in Brussels to dictate to him what he has to do, and the structural flaws of the EU that make it all moot anyway.

Rome had this quality of crumbling neglect about it, like nothing had been repaired in 20 years. Unlike Sweden, that dutifully reinvests a lot of the tax revenue it collects back in infrastructure, Rome appeared starved of money and dying.

What does the computer say about civil unrest and war in Europe? I have the gnawing feeling it’s coming.

BIK

P.S. Thank you for Socrates and your life’s work.

ANSWER: Oh yes. I am familiar with Lagom. My interpretation would be “just the right amount,” so he is a skeptic partially. Unfortunately, the tension should begin to become more pronounced starting in 2020 going into 2022. I am not sure it would be a war, but certainly a rising trend toward independence.

May 21 2019

Fear of Jeremy Corbyn Becoming Prime Minister in UK is a Threat to the Pound


Armstrong Economics Blog/BRITAIN

Re-Posted May 21, 2019 by Martin Armstrong

There is a lot going on in Britain. Many fear that Jeremy Corbyn will now win because Theresa May has made a real mess of BREXIT. Consequently, the Telegraph is reporting that Britain’s wealthiest individuals are preparing to leave the country. The fear that Corbyn will take over Britain as the prime minister is rising. He is so left-wing that the #1 question coming from the UK is whether a win for Jeremy Corbyn could be the reason the computer has been projecting the fall of the British pound back to 1985 levels. It is clear that Corbyn just hates the rich. What he preaches has failed, but it does not matter. People like him just feel better hurting others.

Prime Minister May plans to submit another proposal but she is just resubmitting the same ideas rephrased. If she fails this time, the conservatives will ask her to resign. That could take place in June/July giving rise to some very interesting volatility overall.

May 20 2019

Sweatshop Wages and Third-World Workers: Are the Wages Worth the Sweat?


Published on Jun 7, 2011

SUBSCRIBE 191K
Prof. Ben Powell discusses the economics of sweatshops. He begins with a few photos and personal travel stories to demonstrate typical working conditions in third world countries. He then discusses the economic forces that determine working conditions and wages. Looking at empirical data, he finds that sweatshop workers earn higher wages than non-sweatshop workers in their respective third world country. He concludes with recommendations to activists who want to actually help sweatshop workers. Credits: This lecture was delivered in 2009 at the Metropolitan State College of Denver School of Business, as part of the Exploring Economic Freedom Lecture Series, directed by Prof. Alexandre Padilla. This video was produced and directed by Scott Houck, and edited by Adrienne Christy. Video production provided by the Educational Technology Center at Metropolitan State College of Denver. Video used by LearnLiberty.org with permission.
May 20 2019

Australian Conservatives Win by Thin Margin


Armstrong Economics Blog/Australia & Oceania

Re-Posted May 20, 2019 by Martin Armstrong

Australia’s center-right government won a surprise victory over the left. Voters backed the center-right government in a slowing economy for another three years and rejecting the opposition’s progressive agenda which has been really pretty out there at times. Despite trailing in most opinion polls for years, Scott Morrison’s Liberal-National coalition won attacking Labor’s pledge to take tougher action on climate change and strip tax perks from wealthy Australians. Many are calling Labour’s loss for its leader Bill Shorten, the shock of all time up there with the loss of Hillary Clinton because the polls just got it wrong again.

May 19 2019

Debt Loops Rationale and Effects


Published on Oct 25, 2010

SUBSCRIBE 4.8M
Positive and negative effects of China’s devaluing of their currency More free lessons at: http://www.khanacademy.org/video?v=XB…

Category

May 19 2019

Introduction to Balance Sheets | Housing | Finance & Capital Markets | Khan Academy


Published on Mar 15, 2008

SUBSCRIBE 4.8M
Using a home purchase to illustrate assets, liabilities and owner’s equity. Created by Sal Khan.
May 19 2019

Present Value 4 (and discounted cash flow) | Finance & Capital Markets | Khan Academy


Published on Sep 6, 2008

SUBSCRIBE 4.8M
Lets change the discount rates depending on how far out the payments are. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics… Missed the previous lesson? Watch here: https://www.khanacademy.org/economics… Finance and capital markets on Khan Academy: If you gladly pay for a hamburger on Tuesday for a hamburger today, is it equivalent to paying for it today? A reasonable argument can be made that most everything in finance really boils down to “present value”. So pay attention to this tutorial.
May 19 2019

Present Value 2 | Interest and debt | Finance & Capital Markets | Khan Academy


Published on Sep 6, 2008

SUBSCRIBE 4.8M
More choices as to when you get your money. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics… Missed the previous lesson? Watch here: https://www.khanacademy.org/economics… Finance and capital markets on Khan Academy: If you gladly pay for a hamburger on Tuesday for a hamburger today, is it equivalent to paying for it today? A reasonable argument can be made that most everything in finance really boils down to “present value”. So pay attention to this tutorial.