The politics of desperation unlike the good old days when it was fashionable to judge the strength of an economy by the resilience of its currency, is beginning to make a mockery of stock-market prices in an abject surrender to speculators. Declared results of business used to be the indicator of investor confidence thereby allowing informed decisions of investments. Now artificial propping up of currencies, devoid of actual vales provide sugar-coating to figures that are hard to believe. Just as the small investors stare unblinkingly at the screens looking for quick ways to become rich overnight, the fair-weather overseas investors are as quick to cash in. Companies that are literally unknown or haven't declared profits for ages see their share prices rise abnormally defeating the purpose of the regulator to enforce discipline. In most cases the smaller investors are left in ruin, though some have admittedly raked in one-off windfalls.
But when the unofficially recognised powerhouse called the FTSE goes on a sustained dive, even speculators land up with egg on their faces. The ever resilient Sterling appreciated along with the high hopes raised by the Brexit euphoria, backed by analysts who now admit they were wrong. Today, marketing parlance reminds the traveller that this is the best time to buy the weak pound. There's some similarity to the way that countries such as Malaysia, the UAE and Bangladesh are propping up their currencies at essentially unreal level. Bangladesh has used admirably growing foreign exchange but this too cannot continue for too long. Seven years of hard-hitting austerity and an almost crushing below inflation wage-hike have created more than a murmur about everyone getting poorer, that inspite of unemployment at record levels. Apparently few have worked on the summation that jobs are filled up because European migrants are willing to work for wages that flirt dangerously with minimum wages. Automation has replaced many of the daily and repetitive jobs in Europe but the apathy of working at odd hours or at trades that are quietly frowned upon aren't for the English.
The arguments are in an almost hallucinating stage. Facts and figures are popping like popcorn and it doesn't take a genius to figure out that some products post-Brexit will be cheaper; others won't. In soccer terms, the UK has already conceded a 0-3 defeat after the first rounds. Their parallel discussions on trade has been scuppered, their 'no' to free-movement has been shown the red card and they are having to eat humble pie in terms of judicial changes. Their diplomacy has been sniggered at as being 'confused' and now Tony Blair appears to be wanting to make a grandstand re-entry to politics and Nigel Farage is still sitting on the fence in terms of joining the fray. Of more worry is the internecine conflict. Scotland is dead against Brexit and so want a soft deal, Northern Ireland are scratching their heads about how to do trade with the Republic of Ireland and Eales is…well simply worrying.
The Labour Party never wanted to leave the European Union (EU) but the fear of alienating the majority made them reluctant partners to the 'Leave' bandwagon. The about-turn towards a softer exit suits them fine. Growing inflation is now really beginning to hurt and in the face of ruckus over wage-hikes, a separate allowance for the police has exacerbated matters. Scotland Yard-is more just the misnomer it has been; they've been asked to fund their own wage increases. At best that sounds like bankruptcy of ideas. Under any other circumstance, the Chief Brexit negotiator Steve Davies would have been shown the door after landing up with a whopping fine for insider-dealing. For now, at least, Theresa May is clutching on to one of her last straws. The other one, sadly enough, the Bank of England is now tripping over its bootlaces in saying some of their optimism was miscalculated. Maybe it's time for the return of the calculator rather than spreadsheets.
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