Above, Crystal Palace (https://en.wikipedia.org/wiki/The_Crystal_Palace).
A very common phrase is “his bark is worse than his bite”. This phrase could certainly be applied to President Trump during his term as the 45th POTUS. Many wonder if as the 47th POTUS or Trump 2.0 as many US commentators are now referring to him as will be the same or different.
It certainly appears to be case that “Kneeler” Starmer’s fears about Mr Trump are proving correct.
Readers may think that in yesterday’s post (https://british-gazette.com/bending-the-knee/), I was being overly alarmist about the actions that Mr Trump may take insofar as the UK is concerned.
However I am not! One only has to cast one’s mind back to the experience the Ill-fated Liz Truss had with the financial markets. Events that caused her to prematurely leave #10!
Now one can argue about the extent of the blame to lay at Liz Truss’s feet. “Kneeler” Starmer’s exaggerated statement of “Crashing the Economy” might – I fear – come back to haunt him for were Mr Trump to take significant tariff measures against the UK the reaction of the financial markets – the London Stock Market and the currency markets would be extremely severe. By comparison the disturbances experienced by the Ill-fated Liz Truss could be described as a storm in a teacup!
Why?
Because the UK’s economy has reached a perilous state where it is extremely unbalanced and “lop sided”!
You see, London is one of the principal financial capitals of the world. As is New York. In fact, London is more significant than Frankfurt in the opinions of many.
However, whereas New York is part of the vast economy of the USA and Frankfurt is part of the vast economy that is the EU, London completely dominates the very modestly sized (by comparison) economy of the UK!
What that means is this: Any significant economic/financial measures taken against the UK will have a catastrophic and immediate effect on those mainstay’s of the UK’s prosperity; the London Stock market and the currency markets.
The FTSE will crash through the floor. The £ (Sterling) will sink like a lead brick. Interest rates (for the UK’s sovereign debt) will go up like a rocket! This will happen in one day and will result in a full blown financial crisis!
This will result in “Reckless Rachel from Accounts” delivering an Emergency Budget and the Bank of England raising interest rates to try and keep the £ at some sort of reasonable value!
IF the economic/financial measures taken by Mr Trump are attached to a list of demands – along the lines laid out in yesterday’s post – then I think that calling an immediate General Election would be the ONLY rational and sensible thing to do!
Why?
Because the British People will be presented with a dire choice of two very unpleasant alternatives!
Choice #1: Capitulation to Mr Trump’s demands and agreement to the terms of Mr Trump’s trade deal which he might (going on his past use of superlatives) describe as “beautiful” and “wonderful”! The terms will rope the UK fully into the USA’s domestic market – which might to some of Mr Farage’s enthusiastic and uncritical supporters – seem very good. However the requirement will be to open up the UK’s treasured NHS to de-facto privatisation! It will also mean adopting US standards in such as foodstuffs!
Choice #2: To change the course of the ship of state that is the UK and to sail as rapidly as possible to a safe berth!
Where is that berth you ask?
Brussels!
Mr Tusk has coined a new word: “Breturn”! Meaning Britain’s return into the EU’s fold!
You see, since the UK left the EU various developments have taken place. For a start the UK would have to adopt the Euro and ditch the £ upon joining! However, this far from being a pitfall will be lauded by the Europhiles as the saviour of the UK’s economy! This because the £ will be worth very little!
Now, commentators will suggest that the UK could not possibly rejoin without first going through a lengthy adjustment period.
Wrong!
The UK’s possession of the London financial centre is what the Eurozone needs to maintain it’s financial security. When the plans for the Eurozone were being drawn up the assumption was that the £ (Sterling) would be part of it!
The ONLY practical way that “Kneeler” Starmer could proceed would be to hold a General Election with Labour advocating “Breturn” and Mr Farage T/AS Reform UK Limited advocating Trump’s Trade Deal!