Posted May 24, 2015 by Martin Armstrong
The Bank of England is studying the implications of a possible British exit from the European Union, as it slipped in an email to the Guardian acknowledging such a study. This is standard operating procedure for the BoE and is to be expected. It is by no means confirmation that Britain will leave. Rather, it is studying what happens if that ends up as the case given the political tensions rising over the euro and demands upon Britain to send Europe money.
British Prime Minister David Cameron, who was re-elected on May 7, 2015, has pledged to reshape Britain’s ties with the EU before holding an in-out membership referendum by the end of 2017. It appears that by that time, the Brits may very well vote to get out. We will run our projection on the political ramifications whether they will vote to exit or not. So far, everything appears more likely than not that Britain will exit the EU, for it is unlikely that Brussels will change course. Saving the euro is all about saving their jobs in Brussels, and not about saving the European people.