MercoPress. South Atlantic News Agency

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  Brit Bob

  Hard Brexit - Governor Bank of England 18 October
  
  BoE Governor Mark Carney discussed the risks of a hard Brexit during his testimony to the UK Parliamentary Treasury Committee. There was renewed weakness in Sterling during his testimony.
  
  Ironically, given the fall in Sterling, Carney explained why Europe’s financial sector is more at risk than the UK from a “hard” or “no-deal” Brexit. We wonder whether Juncker and Barnier appreciate the threat that a “no-deal” Brexit poses for the EU’s already fragile financial system?
  
  When asked does the European Council “get it” in terms of potential shocks to financial stability, Carney diplomatically commented that “a learning process is underway.” Having sounded alarm bells about clearing in his last Mansion House speech, he noted “These costs of fragmenting clearing, particularly clearing of interest rate swaps, would be born principally by the European real economy and they are considerable.”
  Calling into question the continuity of tens of thousands of derivative contracts, he stated that it was “pretty clear they will no longer be valid”, that this “could only be solved by both sides” and has been “underappreciated” by Europe. Moving on to the possibility that there might not be a transition period, Carney had a snipe at Europe for its lack of preparation “We are prepared as we should be for the possibility of a hard exit without any transition…there has been much less of that done in the European Union.”
  
  Maybe it’s Europe, not the UK, that needs the transition period most.

  Nov 13th, 2017 - 10:31 am - Link - Report abuse +1
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  golfcronie

  Come on EU audit your accounts for the last 30 years or so and tell the UK where the money the UK contributes is actually going. The MEPS attend and are given 300 Euros per day expencises and are bailing put these bankrupt countries of Europe.

  Nov 13th, 2017 - 11:20 am - Link - Report abuse +1
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  The Voice

  Intransigent Germans and their French poodles cannot be negotiated with. I am sure Mr Davis is aware of this. Barnier's instructions leave no scope for compromise. At some point we will probably have to walk away. This will cause further instability among EU members and the whole rotten Prussian Empire will start to fragment. O
  Stock market gyrations and a Venezuala driven oil price spike offer opportunities to make a few bob. Great for the wealthy and very bad for the poor.

  Nov 13th, 2017 - 11:22 am - Link - Report abuse +1
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  Voice

  I believe we've come to realise that the EU has been working on a plan for the collapse of Brexit negotiations...

  Nov 13th, 2017 - 06:49 pm - Link - Report abuse 0
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  The Voice

  They hope to force another referendum which they hope the wimpish remainers will win. Then they will impose the Euro, cancel the UKs rebate and neutralise the City. We will have to join the European Army too. But...it wont work.

  Nov 13th, 2017 - 08:41 pm - Link - Report abuse +1
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  DemonTree

  Heh, no one with an ounce of sanity would want the UK to join the Euro. If we'd been members in 2007 then chances are it would no longer exist.
  
  The guy who wrote article 50 said the UK could revoke it anytime during the two years and stay in on the same terms as before; keep the pound, the rebate and stay outside Schengen. The Germans want us to the stay, the French not so much, so who knows what will happen with the talks. And having once got their way, the Brexiters have declared that referendums are undemocratic and it would be totally wrong to let people change their minds. They are obviously very scared of the 'wimpish remainers'.

  Nov 13th, 2017 - 09:18 pm - Link - Report abuse 0
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