by Peter Zeihan on October 3, 2022
Last week (when the following video was recorded) saw the British Pound get pummeled by global markets following the announcement of the Truss’ governments “mini-budget.” The Bank of England intervened to help support the currency while newly-instated Prime Minister Liz Truss appears to have taken a few days to avoid the media spotlight, but the episode has eroded whatever support her weeks-old government had hoped to cobble together.
This is a short term problem, however, that pales in comparison to the larger challenge facing the United Kingdom, its economy, and ultimately its place in the world. London emerged as a financial hub for a vast, global empire. After the World Wars, London survived as a clearing house of sorts for the broader EU–particularly between the EU and external economies, such as the United States and Asia.
Brexit did away with all of that. And the British still haven’t figured out what comes next. Some colour: