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OpEdNews Op Eds    H3'ed 6/25/16

What will Brexit mean?

By       (Page 1 of 2 pages)   2 comments
Follow Me on Twitter     Message Rodger Malcolm Mitchell

Britain has voted to leave the European Union, so the markets will crash.

There is no functional reason for the markets to crash, but investors are lemmings, and it takes only a few leaping off the cliff to begin a stampede of cliff divers.

Nothing real will change today. The exit from the EU will take months, years to accomplish, and meanwhile no one knows exactly how that will be accomplished.

Years ago, Britain was smart enough not to fall into the euro trap. So having their own currency, they have been Monetarily Sovereign, and tomorrow, they still will be. Britain always has had one financial foot out the EU door.

So Brexit will be more easily accomplished than a French "Frexit" or a Greek "Grexit."

With all the doom and gloom claims, you might think some people know what will happen, but of course, they don't.

About all we know for sure is that Britain has given itself the right to reject whichever immigrants it fears most -- just like every other non-EU nation on earth.

Xenophobia probably was the fundamental reason Brexit passed, but even here, we don't know how Britain will exercise that right.

The primary thing we don't know, and will not know for months, is how the EU will react. Will the EU enter a punishment mode, canceling trade agreements with Britain, so as to dissuade other nations from following Britain?

That "cut-your-nose-to-spite-your-face" action is quite likely, since the EU leaders continually have shown they are far more concerned about the future of the EU itself than about the futures of any member states.

Let the Greek people suffer. Let the French and Italians struggle. We don't care so long as we EU bankers and executives are fat, rich, and healthy.

So Britain may have to re-learn what the rest of the world knows -- what the U.S., Canada, Australia, Mexico, Japan, China et al long have known -- how to survive and prosper outside the EU.

It really isn't all that difficult.

The British pound will crash. So much the better for exports. Will the EU nations ignore these new, lower prices and refuse to buy British goods and services? Unlikely, though that probably is what the EU itself will attempt to enforce.

The EUs greatest fear is that Britain, which already proved the euro was an impediment to prosperity, will succeed and prove the EU itself has been nothing more than a power grab by rich bankers.

The EU was billed as some sort of war-preventer, but it is nothing of the sort. In its essence, it is a declaration by European nations, "We can't govern ourselves, so we ask that you rich bankers govern us, because we know you have our best interests at heart."

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Rodger Malcolm Mitchell Social Media Pages: Facebook page url on login Profile not filled in       Twitter page url on login Profile not filled in       Linkedin page url on login Profile not filled in       Instagram page url on login Profile not filled in

Economist since 1995. Wrote the book, FREE MONEY. Economics blog is at http://www.rodgermmitchell.wordpress.com. Also maintain a site at www.rodgermitchell.com

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