Those people who do not avidly track global economic events may be a bit confused by the growing tensions surrounding the U.K. referendum to exit the European Union, otherwise known as the “Brexit.” Or, they are completely indifferent. Unfortunately, the potential fallout surrounding the event could very well affect the entire world, but perhaps not in the manner the mainstream media and international financiers would have us believe...
I would point out that under normal global economic conditions, the Brexit really shouldn’t matter much to anyone outside of the U.K. If the EU was fiscally stable, if its banks were solvent and its national debts well in hand, if the EU was actually a practical and successful supranational body, then the damage done by a British vote to leave the union would be minimal. Of course, this is not the case. As many other independent economic analysts and I have been outlining for years, the European Union is on the verge of economic breakdown. Look at it this way — if financial turmoil in a tiny member state like Greece can cause widespread doubts about the EU’s stability, then there is something fundamentally volatile about the entire structure.
The Brexit matters greatly to the future of the EU because, theoretically, if one of its most prominent members says adios, then other members may do the same. As it stands now, the EU cannot afford to have even one member, economically large or small, drop out of the system.
The Brexit matters to the rest of the world including the U.S. because of the brilliantly-destructive program of interdependency and globalism that has shaped our financial house for decades. Interdependency leads to extreme economic weakness because no piece of the global system has the tools to survive without the other pieces; and on top of this, when one part of the machine goes down, ALL the other parts are affected.
Read more at http://www.zerohedge.com/news/2016-06-22/brexit-global-trigger-event-fake-out-or-something-else
I would point out that under normal global economic conditions, the Brexit really shouldn’t matter much to anyone outside of the U.K. If the EU was fiscally stable, if its banks were solvent and its national debts well in hand, if the EU was actually a practical and successful supranational body, then the damage done by a British vote to leave the union would be minimal. Of course, this is not the case. As many other independent economic analysts and I have been outlining for years, the European Union is on the verge of economic breakdown. Look at it this way — if financial turmoil in a tiny member state like Greece can cause widespread doubts about the EU’s stability, then there is something fundamentally volatile about the entire structure.
The Brexit matters greatly to the future of the EU because, theoretically, if one of its most prominent members says adios, then other members may do the same. As it stands now, the EU cannot afford to have even one member, economically large or small, drop out of the system.
The Brexit matters to the rest of the world including the U.S. because of the brilliantly-destructive program of interdependency and globalism that has shaped our financial house for decades. Interdependency leads to extreme economic weakness because no piece of the global system has the tools to survive without the other pieces; and on top of this, when one part of the machine goes down, ALL the other parts are affected.
Read more at http://www.zerohedge.com/news/2016-06-22/brexit-global-trigger-event-fake-out-or-something-else
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