Mish's Global Economic Trend Analysis |
Posted: 10 Sep 2014 11:55 AM PDT A recent poll showed support for a "Yes" vote for Scotland independence went into the lead for the first time, overcoming a 20 percentage-point deficit. This set off a flurry of activity including ...
Did it work? "No" Vote Leads 53-47 Excluding 10 Percent Undecided In the wake of the above tactics Scottish Independence Support Fades. When taking into account all respondents, 42 percent said they would vote Yes, up 1 point, and 48 percent said they would vote No, unchanged. Ten percent said they were undecided how they would vote in the Sept. 18 referendum. With 10 percent undecided this vote can still go either way. Gordon Brown Close to Tears The Telegraph reports Gordon Brown Close to Tears in Emotional Defence of UK-wide NHS. Gordon Brown came close to tears as he spoke about his daughter's death in a passionate speech rallying against the SNP's healthcare "lie".Spotlight on Socialized Healthcare To help explain the above tearjerker speech, consider the following Obamacare analogy: Part of the "Yes" campaign was a claim that the Torries, would end UK's version of Obamacare. Scotland is predominately Labour. In general, Scottish voters do not like the Torries or prime minister David Cameron. They do want socialized healthcare, and they also want more independence, especially on fiscal issues. More Power to Scotland and England No party in power is willing to give it up. Yet, the Torries in England want to do something to help keep Scotland in the UK. The solution is to give everyone more power. How does that work? The Financial Times explains Tory MPs to demand more powers for England. Conservative politicians are mobilising to demand a proper settlement for English voters after the three main political parties pledged to hand more powers to the Scottish parliament.Cameron's "Heartbroken" Plea Let's wrap up the independence tactics with a look at Cameron's Impassioned Plea to Voters. On a hastily arranged campaigning visit to Edinburgh, Mr Cameron confronted the prospect of a Yes vote and said that such a verdict "would have to be respected by the rest of the United Kingdom".Cameron's Appeal to Financial Service Workers Inquiring minds may be wondering why Cameron appealed to financial services workers. The answer is he was appealing to his own group. That set of voters tends to be conservative. The financial services workers are afraid they will lose their jobs if more services head to London in the wake of a "Yes" vote. Voting Better than Civil War Regardless of how one feels about the campaign tactics that include fearmongering, tears, and heartbroken pleas, the entire process is sure a hell of a lot better than the civil war in Ukraine. The genuine heartbreaks in Ukraine including death and property destruction are many orders-of-magnitude greater than any alleged heartbreaks over Scotland. There easily could have been a peaceful solution in Ukraine if following the Maidan overthrow, there would have been votes for each of Ukraine's regions. Instead, and following the advice of the US and EU, Kiev Poked Sticks at Bears and Hornets. Without a doubt, this is a very sad lesson for Ukraine. Ironically, the civil war may lead to the exact same political independence solution. And given the proposed Catalan independence vote (see Scotland Independence Frustrates Spain Prior to Catalonia Referendum), this is a lesson for Spain as well. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com |
World Growth vs. Copper with 3-Month Lag; Iron Sinks to 5-Year Low; US Will Not Decouple Posted: 10 Sep 2014 12:32 AM PDT Copper is frequently cited as a leading indicator of economic activity because of its widespread use in many sectors of the economy, from homes and factories, to electronics and power generation and transmission. For that reason, some call it "Dr. Copper". Inquiring minds may be wondering what copper has to say about future economic growth. The following charts will explain. World Growth vs. Copper Copper Daily Chart The above charts courtesy of Steen Jakobsen, chief economist at Saxo Bank. Iron Ore Down 38% this Year China is slowing and its property bubble is under severe pressure. But it's not just copper that is under pressure. Iron has taken a big hit, and iron producers are under severe stress. Reuters reports Iron Ore Price Plunge Claims First Australian Casualty. Plunging iron ore prices have dealt their first blow in Australia, sending fledgling miner Western Desert Resources Ltd into administration after it failed to reach a deal with bankers over its debt.Expect China to Surprise on the Downside Iron is under pressure even with rising demand from China. What happens if future demand disappoints? I have been stating for quite some time that China is on the verge of a major slowdown and base metals would be affected, and so would the currencies of major commodity exporters like Australia and Canada. China cannot and will not grow at 7% a year as most expect. The consequences of that have yet to be felt. US Will Not Decouple Finally, those who think the US will decouple from this global mess are just as wrong as those who thought China would decouple from the global economy in 2008. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com |
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