Trump is prepared to impeachment
The two major English speaking countries of the world are going through a difficult time dealing with populists on the top post of the country. In the UK – another defeat of Prime Minister Johnson in the House of Commons. Early elections will not, while the work of the Parliament is frozen for the next 5 weeks with the approval of the Queen. However, legislators enough time to pass a law that ties the hands of the Prime Minister in terms of exit from the EU without a deal.
However, there are fears that Johnson could either break the law or go for any tricks, because exit from the EU a deadline of 31 October is its main purpose. This determination he is ready to “push” the conclusion of a trade deal with the European Union. However, judging by the fact that it went against him even his brother and members of his own party, everyone understands that polozhenie cases change will be very difficult, and the main victim will be very British. Although it is a little worried about Johnson, who has promised it is better to “die in a ditch” than to ask for a new delay.
After another defeat of the Prime Minister, the British pound was trading near the high for 6 months at $1.2385. At the moment, GBPUSD is trading around 1.2347.
A very difficult situation with the Irish border. Leaving the EU means open borders can not be – and, therefore, there is a check of the goods transported, which is unacceptable for a single country.
After a meeting with his counterpart in Dublin, Johnson promised that Britain “will never make a check” on the border with Ireland. However, the details of how exactly he’s going to realize it, Boris is not provided. Moreover, the EU will be hard to defend the free trade agreement and its domestic market, while the withdrawal of Britain without a deal, and even with an open Irish border, indicate the prospects are rather chaotic development of events.
On the other side of the ocean, the judicial Committee of the house of representatives of the U.S. Congress, led by Democrats, said on the elaboration of the steps of formalization of the investigation, which could lead to the impeachment of the President. Perhaps these steps are not successful, but the overall mood is symptomatic of a deep dissatisfaction with the actions of trump, who unleashed a full-scale trade and technological war not only with China but also many other countries, including allies.
Currently, policies based on populism, get back inside their own countries. But the fact of the coming to power of people who are so weak in terms of diplomacy, is of deep concern.
The global economy now enters a phase of deglobalization: break a long-standing agreement, connections and unions of countries. The second front trade war technology, is also a cause for genuine concern as minimizing the exchange of technology, the closeness of the research and restrictions on the supply of components could lead to a slowdown of global technological progress and exclusion of countries, which would limit future possibilities of mankind.
In the meantime, we can see the slowdown in the industrialized economies and a clear focus on the easing of the Central banks. And this is only the first stage.
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