Russia and Chinese leaders met twice during last week and called (again) for an end to the current (dollar) system.From my contacts with Chinese insiders I know they really understand our problems well and are clearly preparing for The Next Phase (a monetary and geopolitical reset…
From Larry White:
Crisis Watch – July Update – Significant Willem Middelkoop Quote
Because of the significant event that happened in June (Brexit vote) I am going to replace the usual Crisis Watch Update (here is last month) with the Brexit reaction update posted here a few days ago. Until we see what the short to medium term impact of this vote will be, we need to remain on alert. So far we have seen sharp market corrections, but no evidence of a systemic crisis. Also, I got an interesting comment by email from one of my most reliable sources (prefers to remain anonymous) that he thinks that the actual Brexit (Article 50) may not happen and that the UK may instead use the vote to pressure the EU to reform.
Below I have pasted in the Brexit vote update along with some direct comments I received by email from Willem Middelkoop (OMFIF Advisory Board). As you can see from the comments by Willem, he believes this Brexit vote is an important event that needs to be watched closely. Please note his comments in bold below regarding what he is hearing from his contacts inside China.
First, here are the comments Willem Middelkoop gave me by email with permission to publish here:
Time has come to become very defensive now. A new worldwide financial and political crisis could just have been started. When Trump will be elected it’s time for the real fire works. It will be the American equivalent of a Brexit. A huge shift from the political past.
I think the best way I may be able to serve readers here in regards to this Brexit event is to simply list below links to articles from some of the various sources I cover on the monthly Crisis Watch update. This will give you a feel for how a variety of sources are reacting to the news and readers can form their own opinions from there.
The only comment I would have is that this event is a clear example of why it is critical to stay alert and informed. We live in a globally interconnected financial system. There are systemic risks present in it all the time as we have thoroughly documented here from high credibility sources. It’s not really fun to have to monitor this all the time, but we simply have no other choice given the world we live in today. Below are links to a variety of Brexit reactions I see out there.
CNBC Interview – Brexit vote puts Fed in a Difficult Position
Robert Pringle Blog – Brexit Shows Need for New Rules on Globalization (note: a thank you to Robert Pringle for a link back to this blog contained in this article). Here is a another new blog article on this by Robert Pringle.
James Turk Interview – he talks about Brexit & banking problems in the EU including DB which just failed its stress test. He gives his thoughts on both the short term and long term
outlook for a systemic crisis.
Bloomberg article – Brexit Casts Shadow on World Move to Openness
CNBC – Larry Summers – Warns against “complacency” on market risk
IMF Deputy Director David Lipton on Brexit – sees need for multi lateral cooperation
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