Mario is a financial markets and Economy analyst. Since 2015 his YouTube and twitter Channels, Maneco64, links below, brings to the public information on the Markets, Monetary Policy, Precious Metals, Economics and Geopolitics.
His goal is to inform the general public about the fragility of our monetary and financial system, so we have quite a lot in common there.
He is a proponent of sound money and free markets having studied the history of the monetary system and gold role since 2002.
And he’s very qualified to do so, coming up deep in the belly of the beast, the City of London, and I have LOTS of questions about that as the global center of derivatives and hypothecation. This is also a great opportunity to talk about Great Britons Libor replacement, SONIA particularly since it was the Bank of England that established the 2021 deadline for libors end and of course, we need to talk about Brexit. So without further ado…
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- Why do you do this work?
- In 1986 massive financial deregulation turned the City of London into, arguably, the leverage capital of the world through hypothecation and derivative clearing. When did you begin your career in the City of London and what incredible insights can you share from your 20-year experience there?
- Let’s talk about the Brexit experiment. It taken since 2016 to confirm the split and now the clock is ticking and must be completed by years end. First of all Britain’s split from its biggest trading partner is a huge leap into the unknown, some would like Britain to take advantage of the split and forge its own regulatory path; others want it closer to the EU to make the transition as smooth as possible.
We hear a lot of talk about “equivalence” would you please explain what that is and why it matters to us in the US as well as all global investors?
Under Johnson’s current agreement with Brussels, British financiers will in 2021 lose their so-called EU “passporting” rights (which allow them to work anywhere in the bloc). The U.K. and the EU have agreed instead on the principle of “equivalence,” which will give the City access to the EU for many financial services as long as Britain adheres to Brussels rules.
- In 2012 the Bank of England acknowledged the LIBOR scandal, though I’m not sure they ever acknowledged their part in it, but they set a December 31, 2021 deadline for LIBORs death. The Fed is attempting to create a market in a new SOFR benchmark, but seems to having problems inspiring corporations to make that transition. In England you have SONIA, can you explain what that is and how it’s going?
- Can you tie the ticking time bombs of Brexit, derivatives clearing in the City of London and the end of LIBOR together for our viewers?
- In the EU and Great Brittan, spot gold is not making new all-time highs, what do you think spot gold is telling us?
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