THE BANK OF ENGLAND AND THE BREXITMay 31, 2015
As you might have guessed by now, we're on a bit of a "sequere pecunia" meme this week, as we're following the money and what it might be saying. Last week, you'll recall, I blogged about education, and about the opportunities that it presented culturally to the United Kingdom to become "a player" once again, maybe not quite in the way it was during the halcyon years of Victoria and Edward VII, but at least in a much more vigorous fashion than now. Only one thing, I suggested, really stood in its way: the European Union and the goofy globaloney idea of the "obscolescence of the nation-state," In that blog, I suggested that the United Kingdom and the wider British Commonwealth, over the long term, might be perfectly positioned to act as a bridge between Europe, the West, and the BRICSA nations, but would not be able to exploit that position so long as it was but a cog in the Brussels-EU machine. By parity of reasoning, it might also be said that it won't be able to exploit that situation if it remains subservient to Washington and Wall Street.
There have been a number of moves by Great Britain that do suggest something is in the works, including, as we saw recently, the move to join China's Asia Infrastructure Investment Bank. Indeed, during that episode, there were little, barely audible, rumbles of thunder from across the pond, for one can imagine how the move was received in the "old money" quarters of New England which has long believed its own propaganda about the "special relationship" that is supposed to obtain between the two countries (forgetting, of course, that post-World War One period where the admiralties and general staffs of both countries were preparing for the next great world war over trade... with each other). One can imagine the shock: another example of perfide Albion, the effrontery! the cheek! The French were right! Pity about poor Admiral Villeneuve!
Now, however, there's been another revelation that something might be afoot, from this article shared by Mr. S.D. Brace yourself, it's a "whopper-doozie":
Yes, that's right, but in case you missed it, the Bank of England - under the direction of a Canadian no less (the shock! the horror! the Commonwealth cheek of it all!) - has been secretly planning for an exit of the United Kingdom from the EU:
"Canadian fiscal heartthrob Mark Carney is set to face awkward questions from the U.K. Parliament after the embarrassing revelation that his Bank of England is secretly planning for Britain’s exit from the European Union.
"The disclosure of “Project Bookend,” which threatens to undermine Carney’s pledge of transparency, came on Friday when his chief spokesman, whom he brought to London from the Bank of Canada, accidentally emailed strategy documents to an editor at The Guardian newspaper, including guidance for how to rebuff questions from the public.
"Even Bank of England staff were to be kept in the dark about the project, in which a senior executive was to lead a secret team planning for the so-called “Brexit.” A referendum on leaving the EU was a major platform plank for the newly re-elected Conservative government, and is expected by 2017."
But,there's a few bumps in the road:
"Britain’s newly re-elected Prime Minister David Cameron has said he wants the country to remain in the EU, but only if it reforms, and he campaigned on a promise to put the question to a national referendum. The Labour Party campaigned against a referendum, saying it would support it only if more powers were to be transferred to Brussels, but since its defeat it has changed policy, and now supports the referendum.
"Carney has previously spoken in support of the referendum plan, saying it should take place “as soon as necessary.”
"Planning for the future is, of course, part of a central bank’s role, and the Bank of England often plays “war games,” such as an exercise last year when the U.S. and U.K. acted out their responses to a crisis at a major bank. But as the Brexit moves from hypothetical to reality, the bank’s role as a source of economic guidance becomes ever more precarious."
There you have it, both major political parties within the UK are in the grip of Eurocrats and globaloneyists, but they want a "referendum," which, one may speculate, will be one of those rubber-stamp votes to get the approval of "the people," and, should that approval not be forthcoming, the outcome can always be "renormalized" to reflect the theoretical dogma, an outcome that should have happened if only the British electorate voted sensibly.. But, there is the Old Lady of Threadneedle street, and she's been laying plans for a "Brexit," and that old lady has some powerful backers and shareholders that are part of a very old oligarchy, and not all of them (with the exception of a certain family whose surname begins with "R") may be sitting on the globaloney bench. This may be one to watch folks, and one can only hope that Brussels will continue to turn a deaf ear to British concerns. Then the game will become very interesting indeed. And while we're talking about Britain, votes, and "renormalization", it was, after all, British theoretical physicist Paul Dirac who objected to the whole process of "renormalization" when those troublesome infinities in results kept popping up, and were "adjusted" and "renormalized" (by ignoring them).
See you on the flip side...