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Friday, June 24, 2016

THE GREAT BREXIT

Well, as posted earlier this week, the Great Brexit has roiled the world stock markets.  At one time the British Empire was, indeed, great, for in 1922:
  • commanded 458 million people, 20% of the world (China today is not quite that)
  • covering 13 million square miles, 25% of Earth's land area
  • and the Sun never set on its holdings.

Today, the United Kingdom represents less than 1% of the world population, and the sun just set over its future economy.

So what has happened?
  • The London FTSE 250 index closed 7.2% lower.
  • The pound dropped to its lowest level in more than three decades.
  • Lloyd's Bank crashed by 21%.
  • The German DAX fell by nearly 7%.
  • The French CAC plunged by 8%, as did in Ireland.
  • Japan NIKKEI lost 8%.
  • At this writing, the U.S. Dow Jones is only down by 3%, but an 8% drop would be equivalent to minus 1400.
  • The VIX (stability of market) jumped by 36%.
  • Oil prices fell by 4% anticipating lower future demands.
  • Gold bullion surged 8% as a haven for money.
Donald Trump is hoping he, too, can shatter political convention:

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," he said. "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.

The disarming presence of Trump in Scotland to celebrate the upgrade of his golf course in Turnberry, hailed the fall of the British pound by saying, good, more people will come here to golf.  At a press conference here he kind of embarrassed himself by saying independence was great, not probably realizing that almost two-thirds of Scotland voted AGAINST Brexit.  The national vote was 52% - 48% FOR Brexit. Worse, the leader of Brexit, Boris Johnson, former Mayor of London, looks a bit too much like the Donald.  Incredibly enough, he is the current favorite to replace David Cameron as Prime Minister.  Finally, another coincidence, for the President of the European Council spells his name, Donald Tusk, too closely similar to the presumptive Republican candidate.

Hillary Clinton calmly responded by not saying all that much.  If California secedes from the Union, the population loss would be around 12.5%, just about the same as the UK leaving the EU.   Trump refers to CNN as the Clinton News Network, more so after his ex-campaign manager, Corey Lewandowski joined CNN.

My blog on Brexit had a sub-title:  The End of the European Union?  So, next?
  • Sweden hates their immigration load and already does not use the Euro.
  • Denmark actually had a referendum as recently as this past December, deciding against handing more powers to the EU.  The migration issue is grating.  Next?
  • Greece might be kicked out, for the debt crisis is still there and festering.
  • The Netherlands' potential next leader, Geert Wilders, has hinted that the country cannot stop immigration while remaining in the EU.
  • Hungary could have a popular vote soon to diminish EU cohesion.
  • In France, 62% of the population is skeptical of the EU.
Ironically, Scotland might secede from the UK, but could well choose to join the EU.  It's too early to tell what will really happen, but watch the world stock markets on Monday.

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2 comments:

Maka Point said...

so if you want to live longer you need to be chubby and go to church

PLANET EARTH AND HUMANITY said...

You must have read my posting on churchgoing (25 June 2016: http://planetearthandhumanity.blogspot.com/2016/06/to-your-health-some-surprising-bits-of.html). Yes, all the current medical surveys would agree with you. I'm in deep trouble, for I am not chubby nor do I go to church.

Aloha.