Commentary
-
Our commentary partners will help you reach your own conclusions on complex topics.
Hey everyone. Peter Zeihan here, coming to you from Birmingham, Alabama…You may have noticed that in the financial markets the United Kingdom is having a really, really tough week. The approximate issue is that the new government under Liz Truss released a short-term budget that the markets really did not like. And everyone seems to be piling on and punishing Britain in any way they possibly can. The pound has dropped precipitously and it’s entirely possible that it’s gonna be at parity with the U.S. dollar in the not-too distant future. And by not-too distant future, I mean possibly days. This is all wrapped up in some of the historical legacy stuff that the Brits are dealing with and failing to deal with.
So compared to New York…so New York is a financial hub because it was within the United States system. The U.S. is the largest economy in the world and going back to the 1940s, the U.S. dollar became the global currency. And since New York was already the primary financial center for the United States, it then became the primary functional center for the world. To a degree, this is how things started in England as well. They were the heart of a global empire, a trading empire. But the real issue was that when the industrial revolution happened, it happened in Britain first. So for 150 years, the Brits literally brought guns to knife fights the world over and built the greatest empire in human history, which was also a trading empire. And London was the nerve center of all of that. So it was a global financial hub.
But the empire collapsed over the course of the world wars. And at the end of World War II, the U.S. dollar took over. So the fifties and the sixties were a really rough time to be in London because everything just kept getting downsized and downsized and downsized. But then in 1973, the United Kingdom joined the EU, and since it was still the largest financial center of all of the European countries, it became the de facto financial center for all of Europe. And it was almost like the Brits got a second empire – until they left with Brexit five years ago.
What’s happening now is that the markets to this point have been incredibly kind to the UK because the UK hasn’t figured out what Brexit means. They haven’t figured out how to move on. They don’t have a functional deal for finance with the European Union. They haven’t gotten a deal with the United States. And there are a lot of secondary financial hubs that have boiled up around the world. Places like Dubai for example. If you’re going to invest and have a complete lack of morals, that’s where you go rather than going to London. And so London no longer has a net to spread and that is forcing a very different sort of situation on the country.
So this market route is nowhere close to being over because we’re finally seeing, five years on, because the Brits have been unable to figure out what’s next, that the markets are starting to finally treat Britain as what it has always loathed: A middle power.
And in that sort of situation, the amount of financial drainage that’s gonna come from the system is just absolutely mammoth. So unless the Truss government or its successor is able to hammer out some sort of post-European Union trade system with someone, we are only at the very beginning of a very long road down. Okay, that’s it for me. Until next time.
-
Water wars are an unlikely future
Foreign policy writers have long warned of the possibility that clean drinking water might become “the next oil” — that is, that major wars might be fought around the globe over access to potable water. With expanding populations and finite water supplies, these critics argue that humans will inevitably fight each other to secure drinking…
-
Are Russia’s hypersonic missiles too good to be true?
Russia has reportedly used five of its new hypersonic Zircon missiles to target Kyiv since the beginning of 2024. Russia claims that these sea-based missiles, boasting a range of 625 miles and capable of traveling at nine times the speed of sound, are part of its family of “superweapons” aimed at penetrating the U.S. missile…
-
Norway sending F-16s to Ukraine
In recent months, the need for Ukrainian air defenses has grown more urgent. As U.S. aid is unable to pass through Congress, Ukraine’s European allies have been stepping up to provide what they can. Norway is now the latest nation to pledge F-16s to Ukraine, not only to defend Ukrainian airspace, but also for the…
-
Russians targeting civilian emergency crews in Ukraine
Russian forces are applying a brutal tactic in their war on Ukraine. The tactic, “double tap,” includes an initial strike on a specific civilian target of some value, followed by a second strike intentionally designed to kill the emergency first responders, medical staff, firefighters, and other key personnel dispatched to the location of the first…
-
Iranian strike on Israel not intended to provoke regional war
Rising tensions in the Middle East boiled over again on Saturday, April 13, when Iran launched a direct attack against Israel with over 300 combined armed drones, ballistic missiles and cruise missiles. The attack follows decades of simmering conflict between the two nations, amplified most recently by Israel’s invasion of Gaza and a strike on…
Latest Stories
-
Meta AI debuts across platforms raising privacy, bias concerns
-
San Francisco Zoo to welcome pandas in diplomatic exchange with China
-
Department of Justice cracking down on carjackings in 7 states
-
Dozens detained during pro-Palestinian protests at Columbia University
-
FBI director warns Chinese hackers waiting for ‘just the right moment’ to strike
Popular Opinions
-
In addition to the facts, we believe it’s vital to hear perspectives from all sides of the political spectrum.
Latest Opinions
In addition to the facts, we believe it’s vital to hear perspectives from all sides of the political spectrum. We hope these different voices will help you reach your own conclusions.
The opinions published in this section are solely those of the contributors and do not reflect the views of Straight Arrow News.
Latest Commentary
We know it is important to hear from a diverse range of observers on the complex topics we face and believe our commentary partners will help you reach your own conclusions.
The commentaries published in this section are solely those of the contributors and do not reflect the views of Straight Arrow News.
Peter Zeihan
Geopolitical StrategistAre Russia’s hypersonic missiles too good to be true?
Norway sending F-16s to Ukraine
Russians targeting civilian emergency crews in Ukraine
Dr. Frank Luntz
Pollster and Political Analyst‘Take the job seriously’: Why Americans are fed up with Congress
‘If we can shrink it, it will stop growing’: Americans talk debt, deficit
‘I don’t think they care’: Undecided voters explain their reasons
Pete Ricketts
U.S. Senator for Nebraska