Posted Dec 23, 2015 by Martin Armstrong
There is little doubt that David Cameron offered a referendum on Britain exiting the European Union (EU) because he thought it would never win. Now that the polls are in favor of exiting the EU, thank God Maggie is not around to watch what her Conservative Party is doing these days. Politicians have always been cross-dressers. Abe Lincoln, the first Republican president, defended the blacks against slavery while the Democrats supported the southern slave owners. It was the Republican Teddy Roosevelt who embraced Marx and even started the Progressive Party. Today, you have to scratch your head to figure out who is on whose side.
The latest is David Cameron crying behind the curtain that he really didn’t mean it. He is begging Brussels to come up with something or else he will lose and Britain will vote to exit the EU. The political leaders of the EU have now agreed that there must be a compromise to keep Britain inside the EU. After all, Cameron agreed to chip in £1.7 billion pounds to help the EU quietly so the British also received nothing from the EU but tax increases upon their own people. Then there was the design to end short selling, which Britain lost a court battle over. This will ensure that London will self-destruct as a financial center in the world. Of course, raising taxes on foreigners buying property in London was sure madness and placated the French. If anything showed that Cameron was anything but a Conservative, that did it. The ripple effect throughout London will cause a contraction as foreigners leave town and restaurants begin to miss clients spending wads of cash as will shops and trophy car dealers.
Brussels is now trying to come up with something for Cameron to screw his own people to keep Brussels in power. Those now in charge in Brussels realize they have to help Cameron sell bullshit to the British people or they will lose Britain.
A simple year-end closing beneath 15485 will signal that the pound is starting its decent. Our Yearly Bearish Reversal lies at 14615. With Friday’s closing at 14908. We can see that the market is warning us that Cameron may indeed destroy his own country. Even our technical models are highlighting 13965 as critical. The projection for 2017 at the extreme is 55 cents. That is really amazing.
You can see that if Britain stays inside the EU and surrenders financial integrity of London, there will not be much left. You might as well hand it over to Jeremy Corbyn and he can put his maximum wage limit in and that would probably make 55 look very reasonable. London property has already peaked; the Conservatives followed the lead of the French and have started to chase out all the foreigners. London properties crashed almost 12% in the first month from the downturn in the Economic Confidence Model on September 30.