Brexit DOOM™: Bloodbath in the City

[PurpleGorilla]

Apparently the EU will offer a no tariff deal on manufactured goods and agriculture, and nothing on services, the UK will be expected to pay a bill about the size of what it is paying now and there will be freedom of movement.

According to the Brexit commitee this will still be a lot better than no deal.

This will probably be as welcome as a warm bucket of sick.

Apparently.

Where did you get that from?

[sasguru]

We will have to adapt and change - shock horror.

Yeah your kids will become rocket scientists and brain surgeons.

The brainy people in this country will leave too - guess what's going to happen to what's left.

[Eirikur]

So the EU is like the all conquering Roman Empire?

Yeah sounds about right.

The Roman empire brought high standards of living to most of Europe just like the EU

[jamesbrown]

Here are some "alternative facts" for you (if you don't have an account with the FT, Google "Why the EU’s euro clearing Brexit threat may never happen"):

https://www.ft.com/content/e7b6a752-...6-a4a71e8140b0

[PurpleGorilla]

Here are some "alternative facts" for you (if you don't have an account with the FT, Google "Why the EU’s euro clearing Brexit threat may never happen"):

https://www.ft.com/content/e7b6a752-...6-a4a71e8140b0

https://www.ft.com/content/e7b6a752-...6-a4a71e8140b0


This threat too easily simplifies a complex relationship between trading and location across global markets. There are solid reasons to believe that these calls will be counterproductive and consequently, not acted upon.

Clearing houses manage credit risk in the event one party in a swap deal defaults. London has become a world leader for the clearing of all types of currency-denominated derivatives, thanks largely to the widespread acceptance of English law.

In the clearing world the euro is one currency among many, including the US dollar, Japanese yen and the Polish zloty. Yen, euro and sterling trades are cleared in the US. Deutsche Börse’s Eurex handles futures contracts for UK gilts and sterling.

Governments all around the world are quite comfortable with the idea of having currency-denominated instruments traded and cleared outside their borders — and with many investors using highly regulated London clearing houses.

To demand that only euro-denominated swaps can be cleared in the eurozone is fine, however such a standard would have to apply to everyone around the world.

That would not only create an anomaly, it would also indicate that Europe may be bringing in a measure of protectionism — which could well prompt a retreat from investors.

Crucially, the euro is a global reserve currency and so can be traded and cleared anywhere, just as the dollar is. A demand to have euro-denominated swaps only cleared in the eurozone would represent a step back from that.

It may also spur tension within Europe. The ECB clearing house policy of four years ago — that London successfully countered — was largely pushed by France, and many German representatives were privately at best lukewarm in their support.

One unknown is whether that raises issues about competition. One could not also rule out American banks and exchanges (especially the CME Group) setting out a legal challenge to a policy that tilts the playing field towards particular European corporations. The CME has been cited in antitrust investigations before — notably into the CDS market.

[PurpleGorilla]

Yeah your kids will become rocket scientists and brain surgeons.

The brainy people in this country will leave too - guess what's going to happen to what's left.

Bye bye.

[PurpleGorilla]

The Roman empire brought high standards of living to most of Europe just like the EU

Tell that to Greece.

[OwlHoot]

The Roman empire brought high standards of living to most of Europe just like the EU

In the early days, mass slaughter of hundreds of thousands (equivalent to tens of millions today) and centuries of exploitation.

Then as time went on it became more and more authoritarian and bureaucratic with price controls and ever rising taxes

[diseasex]

Here are some "alternative facts" for you (if you don't have an account with the FT, Google "Why the EU’s euro clearing Brexit threat may never happen"):

https://www.ft.com/content/e7b6a752-...6-a4a71e8140b0

I wonder at which point brexiters will notice their house is on fire.

[PurpleGorilla]

I wonder at which point brexiters will notice their house is on fire.

At what point will remainers notice they are the poaching frog?