The Shifting of the Global Financial Tectonic Plates
What is the foremost strategic disruption that 5G shall enable? Simple answer: it involves a change from interest rate based payment model systems to fee based payment model systems. Witness some of this disruption being played out in 4G Fintech systems, especially in Africa and Asia. But what are the consequences for Government Bonds, mortgages and pensions? Economic experts eh!Elsewhere shall 5G enabled autonomous vehicles ensure that the global insurance industry disruption is our stater casualty here with the Americans having again taken the lead in publishing a 15 point assessment as they begin the regulatory evolution from a voluntary to mandatory framework via their National Highway Traffic Safety Administration. [Look to Pittsburgh, Pennsylvania? Perhaps!]
Staying on the foresight front, none of the Referendum forecast's, which I read, incorporated the scenario of the Chinese Renmimbi becoming an IMF Reserve Currency alongside the Dollar, Euro, Sterling and the Yen after the 30th September (or Sterling being saved by an Algorithm!). Why ever not? The Asian financial foreign exchange markets are about to be put even further through the wringer. For China just announced, beginning in January, it shall start converting $1tn from their $3tn plus foreign currency reserve holdings. Is this strategic tactic a death sentence for the Pound (or Yen) as a reserve currency once a glut of Sterling begins to swirl about? Just how much foreign currency reserves does the BoE hold to defend the Pound? How shall this event impact global supply chain financing? Come the glut, shall the QE Policy, to address a self-inflicted credit deficit, exit their toolbox or be a saviour? For future bench-marking, the total UK Asset Base estimates varies is of the order of 6tn pounds whereas the Computerized Trading in Global Hedge Funds amounts to a mere $880bn.
But this course of events should not be confused with the subliminal Global Digital Single Currency Agenda which shall have to be contested later. But not by the PPE Brigade. Sovereignty, eh?! No wonder the Japanese are hopping mad with the UK Government naively playing into speculators hands. Or perhaps a Yen/Sterling stabilization mechanism is on the horizon? Factor in that the most prominent US trade organization submission has informed the UK Government that $700bn of FDI in the UK is at risk. Shall the pretense of Sovereign Immunity prevent them from seeking compensation and removal expenses? Ah these American's; they are so litigious! Just consider the friction with the EU Commission over double taxing their foreign profit holdings? But as these holdings are to begin being repatriated next year, how many Dollars shall flee The City post the US Inauguration?
Alas shall Sterling eventually even be forced towards the security of the ESM and the Euro? Don't tell the JMB but this later piece of global financial speculation is contingent on the outcome of the forth coming contest between the Trans Pacific Partnership (excluding China) encompassing over 40% of world trade and the China led Regional Comprehensive Economic Partnership (excluding the US). Only one trade pact is implementable here before moving on with the TTIP. So, perhaps PM May is being disingenuous and hoping events mean she never has to trigger Article 50? CETA, eh?!