Miscellaneous News

plawolf

Lieutenant General
Well, if EU is actually a unified nation like UK, the US or China, then leaving the union would have serious consequences. The remaining members will resent UK and make sure UK pays for what they have done.

However, EU is not a unified entity, with no unified identity. Far from it. Unlike any individual nation, there is no such thing as "being loyal to EU". It's composed of independent nations that all take their own country's interests as the absolute priority. Joining EU has always been a purely "profit-driven" thing. There is no delusion whatsoever about "patriotism toward EU".

That is just shows you really need to learn a lot more about the EU, how it works and what Brexit is all about.

Firstly, there is the general stereotypical misconception about the EU being unable to agree on water being wet. Like all stereotypes, it contains some true, but also an awful lot of projection.

The EU has a hard time deciding on major policy matters because of conflicting interests of member states, and that will come into play, but that actually works against the UK, which I will get to later.

Indeed, the crowning irony of Brexit is that it was often, if not usually, the British who were the ones to hold things up in the EU. Germany and France are almost always of one mind, whereas it is the UK who is normally the leading voice of opposition. With the UK gone, EU policy decision making will likely get a lot smoother and quicker.

However, much of that will not even come into play, because most of the key decisions that will be made by the EU in the coming weeks and months, which will be instrumental in setting the tone and terms of Brexit, will not be made by the European Parliament or the voters of the remaining member states, but rather, by key bureaucrats, like the head of the European Central Bank, President and the leaders of Germany and France.

If you have been listening to what those people have been saying, you would be foolish to think they are in any mood to help the UK out. Indeed, it sounds like they are already laying the groundwork to throw the UK under the bus, with talk of domino effects (hyping fear in other EU states about the very existence of the EU), insisting the UK cannot be allowed to use the EU financial passport (which will mean UK based banks cannot offer services or make transactions win the rest of the EU, thereby posing a huge existential threat to London's key financial services industry, a cornerstone of the UK economy) and insisting the UK needs to trigger Article 50 as soon as possible.

You also seems to fundamentally not understand what Brexit is about or what it now means for the UK.

The leave campaign has insisted that by leaving, the UK can avoid having to follow all the fundamental rules that govern the EU common market (free movement of people, goods and services) by being able to restrict movement of other EU member states' citizens into the UK, while still being able to sell goods and services to the rest of the EU without any restrictions. Oh, and they also don't want to continue paying the membership fees of being part of the EU.

By what ludicrous reasoning would any of the remaining members of the EU agree to any of that? Give the UK all the benefits of being in the EU while not having to follow key rules or pay membership fees while they have to follow all the rules and now probably pay more, and get less out of the EU now that the UK is going to stop paying their fees? It is in their own national interests to not agree to such a blatantly unfair deal.

This is where Article 50 is significant. As soon as Article 50 is triggered, the count down begans. 2 years later, you are no longer a member of the EU, meaning all existing agreements and deals are null and void. Once Article 50 is triggered, the EU doesn't have to lift a finger, all the have to do is not do any deals with the UK, and after the 2 years are up, the UK will have zero rights and powers to trade, travel or even cooperate with any EU member state unless all other EU member states agree. This would be where the EU's infamously long and hard decision making process comes into play and works against the UK. It would only take one member state to say 'No' to stop any deals with the UK.

So now, at this very moment, all the remaining members are thinking whether they should follow UK's example; what will happen to them when now UK has decided to leave.

I can pretty much guarantee no other national leader is thinking about following the UK out. They are all thinking about what this move means for their countries, and its almost always the conclusion that Brexit has badly hurt their economies and national interests.

There will be those in the EU worrying about a domino effect, which is why it would be in the EU's best interest to make things as hard and painful for the UK as possible

Instead of making UK pay for their "betrayal", everyone else is thinking "should we do it too?" Making UK an example is definitely not on top of anyone's list.

Just what do you think the EU is? An infinite money bag that only pays out and needs no effort and investment to keep going?

The key reason Vote Leave won was because they told bare faced lies about what they can get from leaving the EU. On the morning after the result, right after giving their nauseating victory speeches, key Leavers went on TV and started backtracking on key claims and pledges made to get ill informed voters to vote leave.

The EU is a common good, like a park, road, or damn that everyone has to work together to help maintain, and pay to keep in good order so that all can benefit.

By leaving, the UK is making the burden of those left harder, and also making the common good less good for those left.

Other than the UK, no other EU country is anywhere as EU sceptic, most of them had to fight long and hard to get in the EU, and they will not be pleased by the UK damaging, and maybe even putting the very existence of this exclusive club their have worked so hard to join.

I am almost certain the talk in many, if not most EU capitals right now is how they can reverse this decision or make the UK pay so badly no one else thinks about doing anything like it again.

Keep in mind that EU is an economic alliance to begin with. When there is no longer incentive to keep it going, everyone will simply part their ways

Except the EU is enormously beneficial to all member states, yes, the UK too! Which is why so many countries are clamouring to join.

At the core of the vote leave argument is the unspoken idea that the UK can get more than its fair share by cherry picking all the benefits of EU membership, without any of the obligations (free movement of people, obeying EU laws and regulations) or costs (EU membership fees and dues).

They might have been able to get a slightly better deal by using the threat of leaving as the hostage. But the fundamental flaw of their 'strategy' is that they shot the hostage before getting the ransom. Now they have absolutely no leverage to even get the same deal as what the UK has now!

The UK cannot put off triggering Article 50 for long. Cameron resigning was him doing the only thing he could to make a tiny bit of amends for this unbelievable wrong he has done the UK by playing with fire and offering the referendum for some cheap political points. He has bought the UK maybe a few months of grace to maybe find a way to undo Brexit.

But as soon as Article 50 is triggered, that's when we are effectively past the point of no return. As soon as that comes into play, everything is on automatic, and will need all EU member states in agreement to undo, which will need a real live miracle I my view.

That is why Germany is saying there is no rush to trigger Article 50.

Right now, the only play with any good endings for anyone is if the UK hold a second referendum and undo Brexit before it begins.

Expect the EU to build a picture of doom and gloom in the weeks and months ahead to try and create enough public pressure in the UK to justify a second referendum.

But don't be mistaken in thinking it would all only be for show and posturing. The EU is also building its contingency plan to royally screw the UK if Brexit cannot be walked back as an example to others so leaving the EU will never be seriously considered by any other member state.
 

plawolf

Lieutenant General
That said about the trade/financial/economic aspect, it is a vindicating day for democracy. An occasion where the underdogs of the current social contract got an effective opportunity to renegotiate it, or at least strongly signal the desire to do so, while relatively far from revolution.

And that's the greatest lie of all from the leave campaign.

The underdogs were sold lies and directed to vent their fury at the undeserving ('bloody foreigners' as always :rolleyes: ) while shooting their economic golden goose in the head and ushering into power people of highly suspect moral, political and world views.

Far from some enlightened display of democratic triumph, this was little more than the same old right wing smash and grab power play with different foreigners being used as scrapgoats to pin all the country's problems on.
 

plawolf

Lieutenant General
UK housing prices are set to fall, so people who actually live there could afford to buy one.

You need money to buy a house. House prices won't be falling by itself in a vacuum, but rather, will be accompanied by high inflation (your money is worth less), stagnant or negative wage growth (you get paid less in real or absolute terms), a weak pound (a lot of imports, including key every day necessities like clothes, food and fuel will get more expensive), crashing stock market (pensions are going to be worth less) and rising unemployment, which all leads to more people who actually live here not being able to keep up with their existing mortgage payments and loosing their homes (increasing the supply of housing), which together with deflated demand (because fewer people can afford to buy houses), is why house prices are expected to be falling in the first place!

So good luck buying that slightly cheaper house when you have significantly less net income to save up for the deposit and afford the monthly mortgage payments.

Nope, it won't be people actually living in the UK who will benefit most, and be grabbing up all the cheaper housing, but rich foreigners, who's roubles, dollars and yuans are now worth about 10% more against the pound than they were a couple of days ago.

Oh, and just to put the cherry on top, House Builders are going to be massively scaling back their building of new homes. In case you weren't aware, one of the key reasons house ownership is outside of the reach of so many young UK people is because of the acute shortage of affordable houses, something the major house builders were finally slowing getting around to doing something about after much government sweeteners and cajoling.

So, after all the dust has settled, all those houses rich foreigners bought on the cheap will keep gaining value, while the prospect of home ownership becomes an even more remote pipe dream for more British people.

Unlike Russia, UK has a lot of products people all over the world buy, so they have a lot to offer. Example cars, advertising.

The UK is unlike Russia, but you got it backwards, Russia has oil and gas that people actually want to buy. The UK has no home grown car markers any more, all the cars made here are made by foreign firms, who, wait for it, set up shop in the UK to sell into the EU common market!

Same deal with the lion share of the UK's services industry. London is what it is because it is a gateway to the EU for the US, who like being able to do business in English as opposed to having to learn French or German.

Already the EU is saying UK financial services are not going to be allowed to do business in the EU after the UK leaves without a new trade deal. If a deal cannot be reached, much of the UK's services sector needs to move to a EU country (Ireland is right next door, and a newly independent Scotland will be even closer) or close down, same thing with much of the UK's manufacturing (although given how little of it is left, its really a distant second place to the harm loosing even a small percentage of the services industry would cause)

EU, especially the eurozone, has its own set of yuge problems so I doubt they would go extra miles to just smite UK for packing up and leave.

Except the EU doesn't have to lift a finger to royally screw the UK. All they have to do is not agree a new trade deal with the UK before Article 50 count down reaches zero and watch the UK economy implode.

The UK needs all the remaining EU states to do it a giant favour, at significant economic and political costs to themselves, for effectively nothing in return. You will have to look all the way back to all the unequal treaties China was forced to sign for anything comparable.

So, unless the UK plans on dusting off its military and invading all of the EU, that's not going to happen in 2 years or 200.
 

Equation

Lieutenant General
So how soon will the EU allowed Turkey to become a member by forgetting all about those...ahem (cough) them Armenian holocaust?o_O Keep in mind each EU members had their own dirty past as well.
 

Yvrch

Junior Member
Registered Member
Wolfie

Let me play a devil's advocate here.
Personally speaking, I have no skin in the game as of last Thursday, 15 minutes right after your polls closed.

It is as much a political issue as an economic one.

I agreed UK can be stronger, richer and all that overall staying in EU, but what is not clear to me is to what extent. Not all countries inside EU, especially in eurozone, are not that great, given all the benefits you brought up. Case in point, Spain, Greece etc. If it is all good why are they suffering? Something is not fitting in the picture.

That brings us to the fact that UK, more or less, has its own house in order and has her own innate competitive advantage, while the weaker countries suffer at the EU trade, ie Greece. UK was smart enough to run 5 tests to keep her own Sterling.

I think eurozone running on cheap money in one unified direction is a double edged sword. I'd rather fear a euro-exit than a Brexit. I wouldn't bet there is not a secret German plan for a euro-exit sitting somewhere. Inquiring mind needs to know. When EU, for that matter euro, dies, it would be a death of thousand cuts, a piece by piece slow-mo death.

Footsie fared better than those in other European countries, Spain and Italy worst. It showed UK's innate strength.

She would get FTA up and running no matter what. So I think UK would be much better position longer term staying on its own strength.

I'm not commenting on what politicians say.
 

Yvrch

Junior Member
Registered Member
You need money to buy a house. House prices won't be falling by itself in a vacuum, but rather, will be accompanied by high inflation (your money is worth less), stagnant or negative wage growth (you get paid less in real or absolute terms), a weak pound (a lot of imports, including key every day necessities like clothes, food and fuel will get more expensive), crashing stock market (pensions are going to be worth less) and rising unemployment, which all leads to more people who actually live here not being able to keep up with their existing mortgage payments and loosing their homes (increasing the supply of housing), which together with deflated demand (because fewer people can afford to buy houses), is why house prices are expected to be falling in the first place!

So good luck buying that slightly cheaper house when you have significantly less net income to save up for the deposit and afford the monthly mortgage payments.

Nope, it won't be people actually living in the UK who will benefit most, and be grabbing up all the cheaper housing, but rich foreigners, who's roubles, dollars and yuans are now worth about 10% more against the pound than they were a couple of days ago.

Oh, and just to put the cherry on top, House Builders are going to be massively scaling back their building of new homes. In case you weren't aware, one of the key reasons house ownership is outside of the reach of so many young UK people is because of the acute shortage of affordable houses, something the major house builders were finally slowing getting around to doing something about after much government sweeteners and cajoling.

So, after all the dust has settled, all those houses rich foreigners bought on the cheap will keep gaining value, while the prospect of home ownership becomes an even more remote pipe dream for more British people.



The UK is unlike Russia, but you got it backwards, Russia has oil and gas that people actually want to buy. The UK has no home grown car markers any more, all the cars made here are made by foreign firms, who, wait for it, set up shop in the UK to sell into the EU common market!

Same deal with the lion share of the UK's services industry. London is what it is because it is a gateway to the EU for the US, who like being able to do business in English as opposed to having to learn French or German.

Already the EU is saying UK financial services are not going to be allowed to do business in the EU after the UK leaves without a new trade deal. If a deal cannot be reached, much of the UK's services sector needs to move to a EU country (Ireland is right next door, and a newly independent Scotland will be even closer) or close down, same thing with much of the UK's manufacturing (although given how little of it is left, its really a distant second place to the harm loosing even a small percentage of the services industry would cause)



Except the EU doesn't have to lift a finger to royally screw the UK. All they have to do is not agree a new trade deal with the UK before Article 50 count down reaches zero and watch the UK economy implode.

The UK needs all the remaining EU states to do it a giant favour, at significant economic and political costs to themselves, for effectively nothing in return. You will have to look all the way back to all the unequal treaties China was forced to sign for anything comparable.

So, unless the UK plans on dusting off its military and invading all of the EU, that's not going to happen in 2 years or 200.

You made it sound like 1930's all over again.

Affordable housing problem is not unique to UK, or the overall general affordability in major metropolitan areas throughout the world. It's more of a city level issue and how to tax foreign ownership to temp down foreign speculation and house flipping. If need be UK government could draw up a social policy just like in US to support home ownership, if they haven't done it already. It's not an Oh there's no way out issue.



Probably you forgot Brent, a benchmark for all to watch daily.
It just showed again how diverse UK economy is and her strength, not the other way around.
UK economy is still bigger than that of Russia, even given the huge oil advantage for Russians.

Well if 60% of your car exports are going to EU currently, that's hard to ignore but UK itself is a pretty big market herself nonetheless. So there still is a give and take. Japanese FDI into UK won't dry up altogether as they don't have that many places to park their money, as I believe FDI into US is pretty much at the higher bound, several times bigger than those in UK.

People still buy from British insurance underwriters just so you know, for marine cargo it's the biggest I believe. And it's not going to change anytime soon.

UK banks are in a way better position than those in EU eurozone area, where national banks are allowed to grow bigger than they need, without the national central bank. That's where all the trouble begins.
 

solarz

Brigadier
And that's the greatest lie of all from the leave campaign.

The underdogs were sold lies and directed to vent their fury at the undeserving ('bloody foreigners' as always :rolleyes: ) while shooting their economic golden goose in the head and ushering into power people of highly suspect moral, political and world views.

Far from some enlightened display of democratic triumph, this was little more than the same old right wing smash and grab power play with different foreigners being used as scrapgoats to pin all the country's problems on.

It may be a lie, but it's also the greatest reason why the Leavers won: fear of refugees. Forget about all that talk of economy. It's the Syrian refugees and the fear of terrorism that has fueled Brexit. It's the reason why the pro-Remain politician was murdered. It's just not politically correct enough to be announced in public.

So the UK decided to leave the EU not for economic reasons, but to protect itself from the flood of refugees that will inevitably wash over the rest of Europe.
 

Zool

Junior Member
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Britain need not send a formal letter to the European Union to trigger a two-year countdown to its exit from the bloc, EU officials said, implying British Prime Minister David Cameron could start the process when he speaks at a summit on Tuesday.

"'Triggering' ... could either be a letter to the president of the European Council or an official statement at a meeting of the European Council duly noted in the official records of the meeting," a spokesman for the council of EU leaders said.

A second EU official, asked about mounting frustration among leaders with the British prime minister's delay in delivering the formal notification required to launch divorce proceedings, said: "It doesn't have to be written. He can just say it."

Cameron will brief the other 27 national leaders over dinner at a European Council summit in Brussels on Tuesday on the outcome of Thursday's referendum at which Britons voted to leave the EU, prompting him to announce he will resign.

On Friday, he said he would leave it to his successor as Conservative party leader and premier to trigger Article 50 of the EU treaty, which sets out a two-year process to quit the bloc. That appeared to be a reversal of a pledge to launch the process immediately after the vote. It has angered EU leaders who want a quick settlement to limit uncertainty.

Some European leaders still expect Cameron himself to start the process in the coming days or weeks, officials said on Saturday. British officials were not immediately available.

Some Brexit campaigners have long said that Britain should aim to negotiate a comprehensive new relationship with the EU, seeking access to markets without submitting to EU rules or open migration, before binding itself into the two-year timetable that would be fixed for talks if Article 50 is triggered.

Such talk worries EU officials and leaders who fear that a prolonged haggling with London will further increase the risk of a domino effect of nationalist-led demands for exit from other states. They do not see a legal way to force Britain to start the process but have piled political pressure on Cameron to honor his pledge to launch Article 50 negotiations and respect the popular vote.


MUST BE EXPLICIT

The Council spokesman made clear that leaders cannot simply choose to interpret something Cameron says as the trigger without the prime minister saying clearly he means it to be.

"The notification of Article 50 is a formal act and has to be done by the British government to the European Council," the spokesman said. "It has to be done in an unequivocal manner with the explicit intent to trigger Article 50.

"Negotiations of leaving and the future relationship can only begin after such a formal notification. If it is indeed the intention of the British government to leave the EU, it is therefore in its interest to notify as soon as possible."

Since the shock vote on Thursday, won 52-48 percent by the Leave camp in defiance of polls and the bulk of the British establishment, there have been calls in Britain for the result to be reviewed or for parliament to ignore the referendum.

The second EU official, asked whether Britain could launch the process and then ask to stay, said that was not foreseen by the treaty: "Once you trigger it, you cannot take it back."

If a state fails to agree a departure treaty with the others, EU law simply stops applying to it after two years.
 
And that's the greatest lie of all from the leave campaign.

The underdogs were sold lies and directed to vent their fury at the undeserving ('bloody foreigners' as always :rolleyes: ) while shooting their economic golden goose in the head and ushering into power people of highly suspect moral, political and world views.

Far from some enlightened display of democratic triumph, this was little more than the same old right wing smash and grab power play with different foreigners being used as scrapgoats to pin all the country's problems on.

That's the establishment's confusion, scare, and defamation tactics driven by highly suspect moral, political, and world views. Which is a fact independent of whether the Leave campaign is a saint.

Ability or inability of a country to absorb immigrants, at whose expense while who benefits, are fair practical concerns deceptively mischaracterized as prejudice by the Remain campaign and comments such as yours.

Any judgement that Brexit is the "wrong" choice as well as any supposed "regret" also need to account for the establishment grooming so many ambivalent, discontented, and/or ignorant constituents in the first place who voted for Brexit. It does not indicate whether anti-Brexit voters were less or more ambivalent, discontented, and/or ignorant.
 
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