Boris Johnson has dropped out of the leadership race in Britain. Word on the street is that this means that Rishi Sunak has all but gotten the job. Sunak has long been the City of London’s candidate, having held a career in finance before he became an MP. He started as an analyst at Goldman Sachs and then moved into hedge funds. By all accounts, Sunak is a smart chap who understands markets.
Already the chatter has started that Sunak’s tenure is going to be less a government than a transitionary period where Britain enters into receivership. Sunak’s rule will therefore resemble many of the ‘technocratic’ governments that we have seen pop in and out of existence in the Eurozone since the debt crisis of 2011. Yet, Britain’s time in the debtor’s prison will look very different to what happened in Europe in key respects.…
The UK is running up against the limits of real resources, resulting in a falling standard of living.
See also
The Gower Initiative for Modern Money Studies
1 comment:
The Eurozone is a monetary union, but not a fiscal union. There is no central authority to issue debt-free euros. All euros are ultimately lent into existence by banks, like most people falsely think happens in the USA. Therefore euro-zone countries with trade deficits (e.g. Greece or France) must go continually deeper and deeper into debt, while countries with trade surpluses (e.g. Germany) suck euros from the weaker nations.
Now the USA is working to make Europe suffer to the point of giving up euros altogether and using U.S. dollars. This will make Europe a debt slave of the USA, which can create infinite dollars out of thin air.
The UK has its own currency (pounds sterling) but it too will be forced to start using US dollars. The UK and Western Europe will buy its food and fuel from the USA and its allies, priced in US dollars.
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