We are at an inflection point in capital markets, says CIO from CNBC.
My regular walk comprises walking from the National Trust car park adjacent to the Botallack Count House Workshop to the Kenidjack Cliff Castle an Iron Age promontory fort and back again. It is one of the most beautiful stretches of coastline in the UK and one reason why I moved here in February 2014 – four years ago now.
As school children we were taught about the “Stone Age”, the “Bronze Age” and the “Iron Age”. Well I suppose that we should really call the age in which we live the Interconnection or Interconnected Age.
The reason? The recent turmoil on the stock markets and a commentary about it in the video above.
The FACT is that the UK and every other major economy is deeply interconnected on so many levels. This interconnectedness has developed rapidly since the European Coal and Steel Community (ECSC) was formally established in 1951 by the Treaty of Paris.
What this means is THIS: The Brexit envisaged by virtually every member of UKIP and Mr Rees-Mogg and his followers CANNOT be achieved!
Much as they would like it, that world has gone. That ship has sailed. That horse has bolted. This had happened a long time before the referendum campaign took place!
In other words Mr Rees-Mogg’s plan has as much chance of flying as the famous Dead Parrot in that wonderful Monty Python sketch.The FACT is that there was, is and will only be ONE way to successfully leave the EU. That is by leaving the EU, staying in the EEA and rejoining EFTA. This now after suffering the Purgatory that will be the transitional agreement.
The question now is: What happens after the transition?
There are four possibilities:
1. Continuance, pro tem.
2. Entry into the “Deep and Comprehensive Free Trade Agreement” which will be able to be described as “a Hawaiian pizza without the ham and pineapple.”
3. Termination of membership of the EU’s Customs Union and continued membership of the EEA via EFTA.
4. Re-entry into the EU as a full member and entry into the Eurozone and the Schengen Area.
So: Which will it be?