Brexit: The Beginning of the Beginning

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I’ve been watching, reading, and dreaming about the Brexit gloom and doom. Not one to bite my tongue, I have to give my 2 pence worth. Unlike John Oliver, I am in complete support of Britain’s exit from the European Union. To begin, Britain never went all in on the EU idea because it kept its own currency, the British sterling. They refused to give up control of their money supply and rightfully so.

I understand that their currency, at present has taken a sharp dive, that their decision has impacted foreign markets, and that there are unforeseeable consequences of such a bold departure. I also believe that the politicians, bankers, and businessmen played to the unjustified fears of people by making Brexit an immigration issue. That was the easiest way to drum up support for this initiative.

Even with all that, the outlook for the British economy is a lot brighter than a summer’s day in London. Britain no longer has to be under the control of the over regulated EU bureaucrats, a governing body whose interests are to protect the strong nations like Germany and France while holding poor nations like Greece and Spain hostage with their unreasonable restrictions. (see Payday Loans: Germany’s Shady Solution for Greece) New trade deals will have to be ratified, alliances will have to be reestablished, and the short-term pain will have to be endured. This may be a bit painful initially but it will prove to be worthwhile in the long run. Once the market does stabilize and the world realizes that there is no apocalypse, I expect more countries will follow in Britain’s footsteps. This won’t include Scotland leaving the UK as their desire to uphold the status quo will only grow stronger given what they have to lose. (see The Trouble with Single Malts: Why Scotland Should Stay in the UK) In the end, the EU will dissolve but this dissolution will not be the end of globalization. This is only the beginning of the beginning.

In the words of the great politician Aaron Rodgers, the world needs to R-E-L-A-X
Brexit? In the words of the great politician Aaron Rodgers, the world needs to R-E-L-A-X

8 COMMENTS

  1. I think Britain will thrive after all the dust has settled. Right now, there is a lot of uncertainty and that’s what’s fueling sell-offs. As you mentioned they kept their currency (smart move on their part) which has dropped but so did most other currencies today. And just because your currency drops doesn’t mean it’s all bad news in fact Britain is looking more attractive today to tourists. It also helps exports too.

  2. Thank you for your comments. At last an American who sees both sides or the argument speaks up!

    The fact remains that almost no American would join a similar grouping of all or most countries on the American continent – would you like to given binding laws by a cabal of countries which are corrupt and care more about protecting their ruling classes (who largely got there by corruption). Welcome to the EU. And, the general consensus in Britain is that the great majority of people, if invited to join rather than remain, would run a mile instead.

    However, undoubtedly the method of our departure is pretty disastrous, arising from gross political miscalculations rather than deep thought. Cameron tried to ride his luck too often, and the EU decided to play hardball with the one country which, throughout its involvement with the EU, has been the most sceptical of many of the EU’s ambitions.

    Now the UK will need to start playing more on the global stage and reach out to its friends around the world. Fortunately, the UK has always been quite good at that and I, for one, am delighted that the US has already changed its tune from “you will be punished” to one of “we still have a special relationship with our closest ally”. Even Germany, overnight, has moved from the EU line of there will be unpleasant consequences to one of accommodation.

    It will be a hugely difficult next few years for the UK but early indications are that we are on the road to a situation of significantly freer trade than we could ever enjoy under EU protectionist rules. The one blot on the landscape will be our (hugely important) financial services industry and it’s difficult to see how that can avoid some form of impact – but you need to reflect on the fact that the UK is the world’s biggest FX market for US dollars and we’re not a state of the US.

  3. Scotland will go to another independence referendum; almost assuredly they will leave the UK. Sinn Fein have started making a move, although under the terms of the Good Friday agreement they will have to accept it (lets hope they do).

    What will be left….A disUnited Kingdom, Farage lunatics running rampant that will chew into an appallingly weak Labour party, a disaffected youth and seemingly most people in their 20s and 30s as well, a PM who gave up without an exit strategy (I don’t blame him who the hell knows what happen, the liars Johnson and Gove have not got a clue) and the EU significantly weakened at a very bad time indeed in history.

    As one Farage supporter wrote on Facebook….. “June 25th… independents day”.

    Astonishing.

    • Nice analysis. I agree that right now it’s all a mess. Only time will tell if it’s the end of the world or just a pivot in policy.

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