Of course it's not whether or not things are checked, it's how long it takes for the checks to be done. Logistics, you see, are critically important, especially in an economy where many businesses rely on the frictionless movement of goods across borders. The existing infrastructure is optimized for the free movement of goods. When the rug gets pulled out from under that without a plan for how to get goods across the English Channel (i.e. after you're done creating leverage) there will undoubtedly be delays, which is why the UK food industry is stockpiling supplies and why the NHS is stockpiling medicine.
In other words, "Won't someone think of the poor banks?"
Despite all the wailing and gnashing of teeth, I remember what happened to the banks and investment houses after the last major economic crisis, they were fine. They'll be fine this time, too.
Yeah literally just don’t check it. If there is no guard and no checkpoint then that doesn’t mean trucks pull over and wait for it to be built. It means they just keep driving. So what. The UK has total control of that part of the process. They can be as lax in enforcement as is necessary to sustain flow as infrastructure is standing up. That really is not a concern on the inbound leg. It is the outbound leg where inspectors on the other side can manufacture delays that is a problem.
But logistics man, seriously. The guy that ran all logistics for the first two years of the Iraq war, just massive logistics activity, has 30 years of experience, not 12 people in the world with his qualifications and he knows all of them... that guy works for me. My senior project manager did all sorts of advanced logistics certification and activity in the military, so did even our CFO. We’ve moved more than the GDP of some smallish countries. There’s a small contract now, 11 teams of 3 doing 12m miles. And we’re not primarily a logistics company. But I mean, just the most brilliant thing would be to lecture me about logistics.
The US is no less dependent on the free flow of goods from Mexico, where billions cross that border daily. No less dependent on just in time supply of parts from China, Korea, everywhere. And that stuff happens with no problems. I don’t know how often you’ve been pulled out for a flight and thoroughly searched. Probably not much right? That’s how often customs inspectors actually inspect. Otherwise they just receive a bill of lading and charge the carrier or sender as appropriate. And it those things are needed on the other side more than precise collection of import taxes, then their enforcement loosens up to meet the task.
Into that mix, there is a whole rest of the world ready and waiting to meet any deficit in supply. You can have rock lobsters from Australia on your table less than 24hrs after they’re pulled out of the ocean and for a price not much different than what’s already available. You can have food supplies from the US by the truckload to every outlet in the UK, as fast as UK domestic trucking can carry it, at airports in less than a day and at ports in about 2wks. We did the freakin Berlin airlift, not to mention dodging subs to keep the UK fed through WW2. You don’t think we can do business as usual when a new customer comes on the market?
Retail vendors are concerned about those two weeks to a month before the market has time to fully adjust. Manufacturers are more worried cause they’re not ordering fungible goods & will have a longer adjustment period as either they or a new supplier retools.
There might be shortages of champagne, Prosecco, Spanish olives, Belgian beer... all things I like. But no one will be in danger of not getting the necessities they need. Critical supplies can go by air, and that really doesn’t cost as much as you think.
It’s not just banks that have this priced in. It’s pension plans, it’s every company that’s regiggered staff and assets for the contingency, every distributor & manufacturer. Everyone has priced in that this is happening in some form. At minimum they have the sunk cost they spent on those changes and the costs to undue them, but a lot a lot of folks have bet the company on absolute assurance this is happening. If it doesn’t, they’re done. And yes the banks. I don’t know if you understand what happens when the debt market collapses but the world stops. It would be a cascading and cataclysmic collapse. But banks are just intermediaries. You see a few big middle men who came through the financial crisis alive but still today trying to heal. You don’t see their capital sources that were wiped out or the cascade beyond banking that suffered and still are. That stuff isn’t going to be permitted to happen.
Sent from my iPhone using Tapatalk