The British pound has dropped 1% today and is trading in the mid 127 level. The rumor running around the City (the financial sector in London) is that Prime Minister May has called an emergency press conference and she will resign handing power to Michael Grove. However, it may be more likely that  Grove has been offered the job of Brexit secretary in the wake of Dominic Raab’s resignation. Theresa May clearly does not know how to negotiate. Perhaps she should ask Donald Trump to represent Britain in BREXIT negotiations. Thacertainlyin would liven things up and it certainly would end up with a much better deal for Britain.

The pro-BREXIT supporters are demanding a shift in the government’s negotiating strategy first.

The draft deal of Prime Minister May smells really bad. It is clear that politicians are clueless about trade and the U.K. remaining within the (EU) customs union forever is really going to economically tie Britain to the EU without a right to even vote. What they do not get is that trade in the EU is not negotiated with a single government. Every member gets to veto a trade deal which prevents the entire 28 member states from acting in their own self-interest. So Britain cannot cut a trade deal with the USA or China without EU approval. Then the speculation goes that they will have to pay dues with no vote.

If Britain does approve the deal precisely on November 21st, 2018, then out long-term projections for the British pound are most likely going to be right on point. So let’s just hold our breath. Why should this not be absolutely just crazy? That is what we elect politicians with no experience in trading or economics to make major decisions in areas they are unfamiliar with

Italy is arguing that it will retain its budget and refers to how both France and Germany exceeded their budgets and the Commission disregard the Maastricht treaty rules in the case of both countries. In the budget dispute, the Italian government was not deterred by the threat of penalties from the European Commission. Finance Minister Giovanni Tria said last week that Italy would commit “economic suicide” to stick to the plans of the previous government to reduce the deficit. Once again, anyone who really reviews the EU structure in an unbiased manner will see that the crisis stems from the plain fact that the FAILURE to consolidate the debts from the outset means that the EU Commission sticks its nose into every budget of each member.

In the USA the result of a federal budget and debt means that each state is on its own. Their budget is of no interest to Washington. In the case of the EU, each member state prints its own Euros – not the ECB. That means the EU Commission acts like a dictator applying the same rules to everyone regardless of the local social needs. This is why the Euro will fail. It is NOT a structure remotely similar to the USA despite they pretended it would reap the same benefit by just a single currency.

Eventually, Ital will be forced to choose between its people and the dictatorship of Brussels. That will be another whole level of political chaos next year.

In Germany, the SPD is now pushing for a revolution in Europe for all member states to surrender their sovereignty to Brussels. They are arguing to federalize Europe and thereby create an integrated Europe of one government. It was the SPD that really won in the German 1918 Revolution. Under Weimar, the SPD was able to put its ideas of social justice into practice by influencing a number of progressive social changes while both in and out of government. The SPD re-introduced and overhauled the Bismarckian welfare state, providing protection for the disadvantaged, the unemployed, the aged, and the young.  The SPD is a full-blown Socialist State advocate following the ideas of Karl Marx.

At theaters across Europe, the SPD organized a symbolic proclamation to create a “European Republic” which was announced from the balcony of the Hamburg Thalia Theater, as actors released the new the manifesto written by Ulrike Guérot and Robert Menasse on Saturday. The aim of the project is to sensitize the public to the idea of a pan-European democracy and statehood. The occasion is the 100th anniversary of the end of the First World War and the almost simultaneous proclamation of republics in various European countries.

The SPD manifesto calls for a Europe without nations and borders, thus to surrender sovereignty to prevent the resurgence of nationalism. EU Council President Donald Tusk has warned against the emergence of populist and anti-integration forces in Europe and the US. He has thus supported the federalization of Europe pointing out the isolationist tendencies in the USA and in Britain. The former head of the SPD Martin Schultz (19 March 2017 – 13 February 2018) also called for the federalization of Europe. They see no problem with suppressing 70% of the people who are not supporters of SPD

In France, things are not much better. Emmanuel Macron, the current president of the French Republic, has collapsed in popularity from 57% to just starting to break the 30% level. Macron has collapsed in popularity faster than Nicolas Sarkozy did, who was a one-term president. Macron said he wanted to turn France into the “Start-up nation” but really promised the same old traditional political agenda. Many are becoming concerned in France also about the massive immigration. Many French are calling it a Trojan Horse, for now, one-third of all births in France are from non-European.

The problem with all the immigration has been that they dropped all requirements for some sort of skill. This is why many on the legal immigrants in Britain voted for BREXIT for they had had to have the work skill to get in like a doctor or nurse. Trump carried Florida and the Mexican vote for the same reason. So many had to prove they had a skill and go through the Green Card process for years to get in. Nobody is considering the sacrifices others made to migrate. Even the great 19th-century migration from Europe to America, there were no free handouts. They came for the opportunity to work – not a free meal

The French Revolution is still alive and well. In France, French President Emmanuel Macron’s abysmal approval ratings have simply continued to collapse. He has suffered as the French have reviewed his elitist lifestyle mixed with his attempts to reform union and then throw in his controversial immigration policies. Many now believe he will collapse to under an approval rating of 10% perhaps matching his predecessor the socialist Francois Hollande, who was so unpopular, he didn’t even bother to attempt a second term.

Now, the National Rally (formerly National Front) party’s candidates for the May European Parliament election are beating Macron in the polls. This is the first time the far-right party has overtaken Macron’s centrist movement in the polls which is a mirror of events in Germany with the rise of the AfD. The May elections coming in 2019 appear to be headed to another major political blow for the EU. Macron’s “En Marche” ticket is failing as is the case for Merkel in Germany.

The latest data from Euro Stat for September 2018 demonstrates the complete failure of the ECB and its Quantitative Easing. The Euro area (EA19) seasonally-adjusted unemployment rate came in at 8.1% in September 2018, which was down slightly from the year/year perspective of about 8.9%. This above all proves that the entire theory of the Quantity of Money is bogus. It also demonstrates that the Austerity Policy of Europe has caused unbelievable social damage resulting in what is being called the Lost Generation with unemployment among the youth reach 60% in Southern Europe.

Without a COMPLETE rejection of Austerity and a COMPLETE overhaul of the European Union structure, there is absolutely NO HOPE what so ever of Europe coming out of the death spiral. This will only get worse as politicians, with ZERO experience in trading markets, will debate and refuse to accept responsibility for their actions. Then you opened the doors to refugees when unemployment is at a serious high? And you wonder why there will be civil unrest and backlash against migrants?

As Einstein pointed out, you cannot possibly solve our problems with the very same thinking process that was used to create them