June 25, 2016

What Brexit Means?


Unexpected social change. Britain voted to Leave the European Union. The stock markets dropped and gold went up as investors react with fear to the surprise. I am among the many who never thought this vote would happen.

The British people will go through changes. But Brussels is shocked because they thought no one wanted to upset years without war. Doesn’t everyone want our leadership and rules? No one wants overreaching rules telling us how little we can do.

The leaders of the EU do not realize their advice and interference is holding economies back. Iceland and Ireland both ignored EU edicts to follow austerity rules and raise taxes. They reorganized and their economies have recovered fairly quickly. How well are Greece and Spain doing? France’s economy is struggling, and Italy & Portugal economies are a real mess following EU advice. Germany cannot pay for all EU’s issues.

What may happen next? Britain is going to have tough negotiations. The EU leadership will want to prevent other countries from leaving. Some members may want to be more reasonable because their countries may want to leave. Netherlands is likely to have a referendum next.

Most countries will find a way to trade with Britain. Why would you not want to trade with the 5th largest economy? Already heard proposals Britain be invited to join NAFTA.

Will there be a recession? Of course, recessions are a normal part of the economic cycle. Will it be as bad as 2008 crisis? No.

Change is a constant in life. Accept it, adjust to change, and keep enjoying life. Children still grow up and we grow a little wiser. Keep your faith. Life goes on.


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