Friday, August 03, 2007


The U.K. is under enormous pressure and Gordon Brown isn't going to be the leader she needs, despite his relatively good relationship with the U.S. He has been left in between a rock and a hard place by the departure of Tony Blair. While a large majority of Brits want to distance themselves from the U.S., in reality, cutting the trans-Atlantic ties would be a revolutionary change to the foreign policy that has stood through the world wars of the last century. For reasons of his own, Brown has opted to strengthen the ties despite public opinion. See here. However, pressure from the E.U. is pulling in the opposite direction.

This is the other conundrum facing Brown; the increasing demands from the Merkel-Sarkozy led E.U. The ever more centralizing superstate want to cut out the voice of British citizens by referendum and expect to dictate to the MPs of Britain instead. Brits naturally are not keen on this either. See here.

A Brown seen to be leaning towards an increasingly centralized and dominating E.U. is unlikely to impress voters before the next elections. But one observer believes Brown may even be considering bailing out:

"There is another reason he may go early, it's the stock mkts and the problems coming from the Houseing mkt, in the US.

So far this has all been nothing much to anyone not in the mkts, but believe me there is a very serious problem in the US mortgage mkt, which is spreading to all the credit mkts. Assets worth Trillions have gone to Zero overnight. Anything other than Gu'mint debt is allmost frozen, there is no mkt for it, so all that Private Finance buying/flipping is over, no-one will lend to them.

There is also smoke comming out of the Hedge Fund World and a very nasty smell....some funds are stopping redemptions...ie you can't get yr money out and no-one has any idea, just what most have on their books. This is what is spooking the Stock mkts, which themselves are way overvalued on an historical dividend yield basis.

The old adage is that if the US catches a cold we get pneumonia, well the problems in the US involve trillions of Dollars, so they may get pneumonia this time, which means we probably die."

The U.K. is being torn from several directions and now it looks as though a political vacuum may possibly develop at the top. I have to wonder at the chances the U.K. has of retaining some vestige of sovereignty in the face of its internal and external pressures. In my opinion, the destruction has been the handiwork of the Marxist institutions such as the BBC which have worked tirelessly at tearing down the British spirit and common sense that made Britain the great empire it was.

Cross-posted at The Midnight Sun


Reliapundit said...

the quote:

"assets have gone from trilions to zero" is such an exaggeration as to be a LIE.

brown sucks, but neither the markets or the left winger CAMERON - who poses as a tory - can bring him down.

if the uk had a real conservative leadewr like thatcher then she would beat brown.

alas: there is NONE.

M. Simon said...

The deal is that the world economy cannot afford an American slump. Misery in Europe, Revolution in China.

Thus I expect a slow down as the housing bubble gets absorbed. What ever is required to keep America afloat will be done.

It is not a sure thing. It does bias the odds.

Reliapundit said...

the usa econ0my is in great shape.

subprime (the junkj of the mortgage market) is doing poorly.

the mortgage markets can handle it.

the feds will lower rates.

all is well.

don;lt believe the msm lies about the economy.

look at the numbers: 80% of usa firms have better profits this year than last.

the msm is lying about the economy as they try to lie about the surge.

Aurora said...

The quote by a British source on the U.S. economy was exceedingly negative. It reflects, I think, a deterministic and dark vision of the future due to the U.K.'s unenviable political situation, and an almost superstitious mistrust of anything American on the part of many Brits due to the relentless propaganda of their MSM. The BBC and other similar outlets is all these people see. There is little alternative to the Marxist type sources available to them and hasn't been for years.
Reliapundit said if the uk had a real conservative leadewr like thatcher then she would beat brown.

alas: there is NONE.

This is their huge problem and I think even if they had such a leader, in the current political milieu, with much of the population so bent in a decidedly dark direction; a Margaret Thatcher would be lambasted and ridiculed out of existence. They've banned Churchill from the history books!!