British Economy: Bank of England’s Carney sees Brexit pushing up inflation, rate hike likely - by Lindsay Dunsmuir

Bank of England Governor Mark Carney said on Monday that Brexit is likely to hurt Britain's growth prospects in the short term and push up inflation as the country adjusts to life outside the European Union.

In a speech that immediately drew criticism from some Brexit supporters who have previously criticized his stance on the EU, Carney warned that Britain would face a cost for reworking its trade relationships.

In the short term, the weakening of trade ties with its EU partners would not be offset by new agreements with other countries, he said, as he repeated his argument from last week that interest rates would probably need to rise soon.

"This makes Brexit, relative to the experience of the past half century, unique," Carney said in a speech at the International Monetary Fund's Washington headquarters. "It will be, at least for a period of time, an example of de-globalization, not globalization."

Brexit supporters say the freedom to strike new trade deals is one of the big advantages of leaving the European Union. Diane James, an independent member of the European Parliament who was briefly

leader elect of Britain's anti-EU UKIP party, took aim at Carney.

"Mark Carney blaming inflation on Brexit. Does he not realize that QE and ZIRP are the major causes?," James said on Twitter, referring to the BoE's stimulus programs.

Read More: Bank of England’s Carney sees Brexit pushing up inflation, rate hike likely - The Globe and Mail

The Global Economy: Globalization's Gluttony - by Anatol Zukerman

Corporate Global Power

Globalization is gobble-isation
By the goblins of global gluttony.
While gullible workers of troubled world
Work in the sweat of their brows
Crass corporations grab the world’s wealth
And don’t even share it with its creators.
 
This pen-and-ink drawing captures the shifting mindset among American workers. For decades, they went along with the promises of their leading politicians that, despite all the harsh changes in the national economy, there would be a brighter tomorrow. But now, these voters are running out of hope.

As the biggest American corporations liberally shed jobs at home and have effectively abandoned America for cheap labor and tax havens abroad, working-class voters feel at the receiving end of the stick.

The fact that these companies at the same time have American government in their claws does not make working-class voters feel better. Social benefits, meager to begin with, have been further reduced. Yet, another, fairer social compact is possible, as corporations in Europe demonstrate.

Not so in the United States, where corporations are not only determined to ignore the will of American people in order to expand their power and increase their profits, but get away with it due to bought-off politicians.

It is a painful irony that the latter claim to protect the “public” interest. It only leads to more bitterness that nearly all major American politicians – including the current crop of candidates for President of the United States – have made critical statements about corporations many times over many years. But it was just words, never followed up with deeds.

This globalization for the rich continues. If it isn’t more inclusive, it will fail.

Read more: Globalization's Gluttony - by Anatol Zukerman