The British pound surged nearly 3% today after UK Prime minister Theresa May added clarity to the Brexit decision. “No deal for Britain is better than a bad deal for Britain,” sad May.
Currency traders were convinced a hard Brexit would kill the pound, instead it rallied. And the decline in the US dollar index, widely attributed to Trump statements, has at least as much to do with May statements.
Regardless, the UK is striking the right tone at last.
Blueprint For Brexit
- “We are leaving the EU, but we are not leaving Europe.”
- “No deal for Britain is better than a bad deal for Britain.”
- British citizens voted “with their eyes open.”
- “We will get control over number of people coming to Britain from the EU.”
- “You cannot control immigration overall when there is free movement from Europe.”
- “We do not seek to adopt a model already enjoyed by other countries.”
Clean, Clear, Concise, Correct
May’s blueprint depicts 4 Cs: clean, clear, concise, and correct. Some whiners don’t see it that way.
Whiner of the day, UK Liberal Democrat leader, Tim Farron, complains in a Guardian Op-Ed, Whether you’re leave or remain, Theresa May just betrayed you on Brexit.
Farron: Today’s speech on Brexit was yet another hopeless attempt by the prime minister to mask the fact that the government has absolutely no strategy when it comes to the most defining issue facing our country for decades.
Mish: The plan was quite clear. And so is the strategy. “No deal is better than a bad deal.” Since the EU insists article 50 must be triggered before they “negotiate”, the best May can do is set the tone. And that she did.
Farron: May has decided – before she has even entered into negotiations with the EU – that the only decisive act of her premiership will be to tear the UK out of the single market.
Mish: At best, that is a disingenuous pile of garbage. At worst, a willing pack of lies. It is the EU’s insistence that the UK get a bad deal and must abide by the European Court of Justice that forced May’s hand.
Farron: She has given up on the most important part of the Brexit negotiations at the first hurdle, allowing herself to be taken hostage by those in her party who are the Tory equivalent of Momentum – fundamentalists hell bent on taking their party away from the mainstream.
Mish: Dear Mr. Farron, excuse me for asking: Did Brexit win the vote or not?
Farron: When it comes to British prosperity and British democracy, she is waving the white flag from the White cliffs of Dover. In doing so, she has confirmed that Britain is heading for a hard Brexit. She has made the choice to do massive damage to the British economy.
Mish: That’s two lies bundled in “fake news”. First off, how the hell does Farron know the British economy is headed for “massive damage”? His stating so is another laughable statement in the face of an economy that seems to be doing quite OK. Second, it was not May’s choice. It was the EU’s choice to insist on a hard Brexit to punish the UK.
Farron: Was the vote on the 23 June really a vote to transform our economic model into that of a corporate tax haven, as was threatened this week by the chancellor, Philip Hammond? No, it was not. It is Nigel Farage’s vision of Britain’s relationship with Europe and the rest of the world. A vision that will have an extremely damaging impact on our standing and relationship with our neighbours.
Mish: Now that’s a hoot. For starters, lowering the tax rate is a good idea. Look at Ireland for proof. Secondly, Farron is all concerned about EU “neighbours” that have pledged to make life painful for the UK. Some “neighnours”!
Farron: The new Ukip leader, Paul Nuttall, himself commented that May’s words could have come straight from a Ukip party conference speech.
Mish: When you have nothing of substance to say, you attack a person, instead of the idea they present.
EU Hardball
May is starting to play hardball, as I proposed all along. The UK can lower corporate taxes even more, and say to hell with paying a “Brexit Tax” the nannycrats in the EU insist upon.
On November 29, in response to a EU claim “cards stacked in our favor” I proposed Brexit Stacked Deck? Which Way? Don’t Negotiate, Just Leave!.
That is the underlying threat behind Theresa May’s statement “No Deal Better Than Bad Deal“. And that salvo gives the EU something serious to think about.
White Flags
Farron accused May of “waving a white flag“.
In reality, May properly stood her ground against someone who is a disingenuous demagogue, a free trade illiterate, and a spreader of fake news on the demise of the UK.
It is amusing irony that Farron accuses May of waving a white flag just when she leads the charge.
Mike “Mish” Shedlock
