In the early days of the 20th century there was a colloquialism: 23 Skidoo. Wikipedia’s definition: A slang American term popularized during the early parts of the last century. It generally refers to leaving quickly, being forced to leave quickly by someone else, or taking advantage of a propitious opportunity to leave, that is, “getting out while the getting’s good.” If I was a British voter I would adhere to the wonderful thought of the Spectator article published last week (h/t OB).
The fear-mongering from the globe’s self-selected elite is predicated on concerns about the potential for large financial losses from the entire European project to be cast asunder as many other EU nations seek to depart from the “shared responsibility” of a grand vision of the Davos elite. The Brits need to blow up the EU to save it from itself. If Britain votes to stay, the average U.K. citizen will find herself trapped in the EURO and wind up a major creditor to the debt the ECB is accumulating. The fear of Britain being left out of world trade is a bogeyman with no substance.
The G-7 recently admonished the Brits for having the “audacity” to seek out its own trade deals with China rather than being a servant of the demands of the U.S. and its subordinates. Read the Spectator piece and form your own opinions about the June 23 vote. For me it’s skidoo.
***Today, Janet Yellen offered no surprises in her testimony to the U.S. Senate. There was a good discussion about Brexit and, even more importantly, an appropriate questioning on the importance of the Labor Market Condition Index. Chair Yellen explained that the significance of the LMCI provides a glimpse at the rate of change in a variety of variables. Currently the rate of change is deteriorating, which is making the Fed cautious about the employment picture. Still, the Fed chair spent more time answering questions about diversity in the Fed appointments.
Senator Shelby tried to pin down the Fed Chair on the centeral bank’s exit strategy from its massive balance sheet expansion but Ms. Yellen dodged that issue as she so adroitly did Steve Liesman question at the Fed press conference. It all comes down to the market response to the Brexit vote. Until then, skidoo from position risk. Trade with fervor, invest with fear.