Britain’s vote to exit the European Union (Brexit) on Thursday shocked not only the financial markets but especially rankled the establishment elite including the banksters, politicos and media. The rhetoric sounded like a repeat of the 2014 Scottish Referendum (See: Separatist Forces Growing in Europe) where they spent the weeks leading up to the vote sounding a bit like “Chicken Little” with their predictions that the sky would fall if Britain chose to leave the E.U. (or Scotland left the U.K.) It is interesting to note that the bank stocks were among the hardest hit in the post vote mayhem.
Prime Minister David Cameron staked his political career on a “Remain” vote and used the entire force of the British government to insist that “Brexit” would be an economic and political disaster. But the people choose to leave, in a 52 to 48% vote that surprised the gambling odds makers who gave “Remain” a 90% chance of winning. Generally, it’s a safe bet to stick with the status-quo, so the fact that the vote was clearly in favor of leaving is significant. However, Cameron was the biggest loser and has turned in his resignation effective in October.
Polls, Polls, Polls
Much like the polls before every Republican Primary this election, which predicted Trump losing first to Jeb Bush, then to Rubio, then Cruz and even to Kasich… polls leading up to the Brexit vote, even up till the last minute showed the “Remain” side winning.
Interestingly, a recent visit by Obama may have had precisely the opposite of the intended result and helped the Brexit side. In a scripted speech Obama predicted doom if the U.K. left the E.U. and extolled the virtues of remaining connected. However, a Daily Mail editorial said Obama had shown “contempt for voters, his tone was patronizing, the language menacing – and the message not only hypocritical but, frankly, insulting,” it added, “He has no business to come here and preach that submission to Brussels is good for the people of the U.K.”
Obama’s reference to the British term “Queue” rather than the American term “line” led many Brits to conclude that the whole speech was written by Cameron’s office. Shortly after the speech, a political satire cartoon began circulating showing Obama seated with Queen Elizabeth in a restaurant saying “She’ll have the fish.” At the end of the day, rather than improve the prospects of the “remain” vote, polls showed a 4% move toward “Brexit” (precisely the margin of difference between the “remain” and the “Brexit” sides).
Inefficiency and Bureaucracy on the Rise
According to former U.S. Ambassador to the U.N. John R. Bolton, the propaganda campaign failed, for one simple reason: “During 43 years of British EU membership, UK citizens came increasingly to believe they were losing control over those governing them. Decisions were made in an utterly opaque EU bureaucracy, with British interests routinely overwhelmed by those of other EU members, especially Germany.”
I wonder if those of us who favor Brexit aren’t equally overstating the case. In other words, is this really part of a bigger anti-globalist trend that includes Trump, that includes secessionists movements around the world or are we overstating this? ~ Godfrey Bloom former member of E.U. Parliament
The E.U. has become increasingly bureaucratic and dysfunctional with rules requiring member countries to act against their own best interests “for the greater good”. But it is precisely these rules that are making the E.U. less efficient overall and hamstringing individual countries. For instance, the E.U. developed a complex formula to calculate the maximum fishing fleet that a member country can have, forcing countries to “decommission” efficient fishing ships in order to give inefficient producers a “level playing field”. This had the effect of making the entire system less efficient. Plus efficient producers lost ships and jobs while the price of a fish dinner went up.
A Vote for Independence
While the Brexit vote was embarrassing to Cameron and Obama, it may actually have helped Trump’s standing in the U.K. Back in January, British Parliament was debating banning Trump from the U.K. for “hate speech” but the tide may have turned as his statement regarding Brexit was well received. He said:
The people of the United Kingdom have exercised the sacred right of all free peoples. They have declared their independence from the European Union, and have voted to reassert control over their own politics, borders and economy. A Trump Administration pledges to strengthen our ties with a free and independent Britain, deepening our bonds in commerce, culture and mutual defense. The whole world is more peaceful and stable when our two countries – and our two peoples – are united together, as they will be under a Trump Administration.
Come November, the American people will have the chance to re-declare their independence. Americans will have a chance to vote for trade, immigration and foreign policies that put our citizens first. They will have the chance to reject today’s rule by the global elite, and to embrace real change that delivers a government of, by and for the people. I hope America is watching, it will soon be time to believe in America again!
Independence Still at Risk
Even though “the people have spoken” it still isn’t a “done deal”. British Parliament still has to vote to implement it. According to EU rules, “In order to formally break away from the EU, members are required to notify the E.U. of their intention to withdraw and the EU is then required to negotiate the withdrawal agreement.” In this instance, “members” does not mean the British people but rather the British Government. So British Parliament must formally notify the E.U. bureaucracy of its intention to leave, invoking “Article 50”. Once they finally do that, the clock starts ticking on a two year window for them to work out the terms of the exit. But it could still all be for naught if the Parliament decides to ignore the will of the people and not file for withdrawal.
Brexit and the Elliott Wave
Learn what the Brexit vote represents — and its implications for the world markets and economies in this video.
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