EU politicians will fail in their attempts to enact Donald Trump’s ‘Art of the Deal’ over Brexit
One of the primary reasons why most governments are either bankrupt, under massive debt, or completely insolvent is because politicians have no real understanding of money, finance, and economics. Â And it is also why most of their legislation today is written for them by corporations such as with Obamacare, and with Dodd-Frank.
In fact the majority of politicians in the West are a combination of lawyers and academics who have never run a business, never had to deal with employees, taxes, payroll, and budgets, and trust that central banks can simply print money out of thin air to accommodate all of their politically based legislations and agendas.
Thus it is almost humorous to watch as the EU technocrats and bureaucrats holed up in Brussels try to impose their own ‘Art of the Deal’ on the UK over the ongoing Brexit negotiations when it is Britain who actually holds most of the cards, and can invariably leave without giving the coalition government a single dime if they so choose.
British version of Up Yours
Just 10 days before the general election, the EU published two documents that will affect every person living in Britain for years to come. Despite being dropped into the maelstrom of an election caused by Brexit, there was hardly a murmur.
The documents were the most detailed positions yet from the EUâ€™s chief negotiator, Michel Barnier, on the upcoming divorce talks with the UK.
InÂ two policy papers, the bloc has elaborated its stance on the Brexit bill and citizensâ€™ rights.
The 10-page paper on the bill does not put a price on the divorce, but sets out in painstaking detail all EU bodies with a vested interest in the spoils â€“ 40 agencies, eight joint projects on new technologies and a panoply of funds agreed by all countries, from aid for refugees in Turkey to supporting peace in Colombia.
No detail is too small. Britain is even on the hook for funding teachers at the elite European schools that educate EU civil servantsâ€™ children.
â€śArt of the Dealâ€ť tactics by the EU are not going to work.
The EU exports more to the UK than vice versa.Â Fishing rights in UK waters are in play.Â The lower British Pound will temper cost of any tariffs the EU places on UK exports. EU imports to UK will collapse.
Itâ€™s hard to imagine a worse negotiating stance than that taken by the EU. â€“ Mish Talk
Make no mistake however, should the UK simply choose to leave the EU without an agreement there will be political and economic consequences for the Island nation. Â But this would also mean that Britain would be free to open negotiations elsewhere without the former stigmas imposed upon European countries by the EU central political body. Â And if there was anything to be gained from watching how Russia dealt with trade issues following their being hit with economic sanctions, it was that there are plenty of opportunities in the East that can easily pick of the slack from losing out on European business.
The EU has the most to lose from Britain leaving the Union, but their negotiations appear to look like an attempt of a petulant child throwing a tantrum rather than trying to facilitate the best possible outcome from the loss of one of their biggest economies. Â And if the UK proves successful in bailing out on the EU without extreme long-term consequences, then it will be a signal to other member states that leaving the EU is a much better option than remaining under the thumb of austerity and technocratic rule.
Kenneth Schortgen JrÂ isÂ a writer for The Daily Economist, Secretsofthefed.com,Â Roguemoney.net, and Viral Liberty, and hostsÂ the popular youtube podcast on Mondays, Wednesdays and Fridays.Â Ken can alsoÂ be heard Wednesday afternoons giving an weekly economic report on theÂ Angel Clark radio show.