Jeff Fawkes is a seasoned investment professional and a crypto analyst. He has a dual degree in Business Administration and Creative Writing and is passionate when it comes to how technology impacts our society.
As you may know, people in Europe like to do things slowly. This time, Great Britain is leaving the Eurozone for real, while the world’s eye pairs staring into scary Chinese videos.
The leaders of the European council and commission, Ursula von der Leyen and Charles Michel have signed the Brexit agreement in Brussels. It happened seven days before the agreements will gain full juridical force.
The House of Commons submitted the initial draft of Brexit docs and then rejected the corrections made by the ‘oldies’. The powerful youth said that the bill must pass without changes, and the Lords gave up. After House of Lords’ approval, the bill is receiving the royal assent on Thursday. The Queen already signed one similar approval regarding Brexit earlier.
On 31 January, Great Britain will regain total independence from the European pestilential habits and a broken economy. The disastrous Euro currency, as well as the possible ECB’s stablecoin, won’t influence The great pound anymore. Also, Great Britain owns half of the world already, so they won’t feel too abandoned.
Boris Johnson has the majority of 80 conservative party deputies in the House of Commons. The lower chamber is inspired by his actions, even in the House of Lords there were no talks about changing the decision. Because anyone saying that Brexit is bad would go against the will of the majority.
What to Expect after 1 February?
From February to March, Europe and Britain will develop the new rules of trading, traveling, and so on.
The planned completion deadline is 11 months from the beginning.
- Opening statement by Chair Antonio Tajani
- Statement by the rapporteur Guy Verhofstadt
- Statements by the shadow rapporteurs
- Interventions by MEPs on behalf of political groups
- Recording of the vote
- Statements by MEPs after the vote: part one and part two
Per Von der Leyen’s Twitter:
“Charles Michel and I have just signed the agreement on the withdrawal of the UK from the EU, opening the way for its ratification by the European parliament.”
Many Europeans are against Brexit because nobody wants to lose such a beautiful country, where cocaine jerks can live like normal and the fog is covering crucial sins. On January 9, the elected House of Commons has given the House of Lords a draft bill of the agreement. The upper chamber tried approving the legislation with its corrections earlier this week, but it didn’t work.
Johnson Already Starts Off the Divergence, Markets May Be Reorganized
The Brexit crowd called those strange regulations awful. They claimed that they will go away from Britain once it is free from Europe. Well, now the government looks like it wants to impose own rules, which will not comply with European ones. This may lead to the scary trade war in which the European markets will start clothing themselves for the British goods. The ridiculous example of some countries destroying relationships in exchange for temporary cash didn’t teach British politics anything.
Notably, 45% of all British goods are going to the EU. And Europe has half of its export sent to Great Britain. Brexit could cause British vendors to look for another place to sell their sausages and whiskey. The European vendors would have to offer their extremely expensive foods to the countries that have no will of buying that kind of thing. Who can eat as much as British people can? China? But there is a problem…
Establishing new market relations can take up to several months and even years. There are not so many countries in the world who could agree to accept anything of British or European origin in ultra-large quantities. Ukraine, Moldova or Belarus won’t eat as much of the British sausage as France and Germany.
What’s Going to Happen with Pound and Bitcoin?
Once British people understand the essence of the exchange trap, they’ll demand Breturn.
People get tired of an economy where currency is losing weight, and outside markets restrict your goods. When prices are rising and the outsiders are trying to bite you every second, it’s even worse. That’s exactly a world where Belarus, Ukraine, Moldova, and other such countries live permanently.
Massive amounts of pounds, euros, and dollars may flow to the venture market, into the gold, and cryptocurrencies. Bitcoin seems to be one of the most obvious options. All such hedging assets have their set of risks and benefits, but all better than simply losing money by storing the pound. All this is especially scary considering that Johnson promised, but not delivered a set of bright deals with international partners.
The second major factor which will influence the markets is the Chinese virus, that sets the historical record in terms of population isolation. In China, 40 million people already have no way of leaving the contaminated area. The fearful crowds are hiding in houses to avoid contact with anyone.
Virus Adds Uncertainty, Money Will Flow Away from China
Many of the world’s goods are from China. Trading may slow down because of the countries giving the ships from China red light on visiting port cities.
People across the planet will be extremely cautious with goods from China. In some countries, half of the markets filled with something marked ” made in China”, including clothing, electronics, and even food. Now, China will have to put a ton of effort into proving that their fish, meat, and even the regular pens or pencils do not contain dangerous viruses.
When people are in fear of dangerous biological weapons, terrorists or economic collapses, they stop thinking. Then, just follow the orders. You may think that the recent actions in Iran and the Chinese virus outbreak are unrelated. However, there is one country that gains lots of benefits from Brexit. And from the need of Britain and the EU to sell the goods somewhere. And from the war in Iran… which led to the ‘obvious’ fact that Iran cannot have nuclear weapons.
Chinese coronavirus situation will help the U.S. put China’s economic expansion under burdens. And we are seeing that the most beneficial side of the world is the U.S. (again). How does it happen that every time the world is on fire, the United States is gaining profits?
The virus caught everybody with their pants down. It hits the homo sapiens’ immune system with ease and fun. We are not the evolutional specialists here. Yet, think about the country that will gain lots of profits from the recent news. The issue with the virus is very strange because if ”wasted markets” would produce mutated versions of the viruses, then such a hardcore micro-virus would appear earlier, much earlier in China. And humanity would have the natural immunity from it already. All this may point to the artificial origin of the virus.