Brexit does a number on the economy

Now I’m not an economic s expert but the Brexit [or Great Britain leaving the European Union] will send aftershocks throughout most of the world’s economy.

Some of it will probably last for a few years as most if not all of the “exiting” must be negotiated and decided within 2 years of Article 50. Two years is just the negotiations [with a few things being implemented immediately]. Then there is the actual implementation. That will take a few years or so.

Article 50 is the part of the EU constitution [if that’s the right word to use] that stipulates what happens and when things happens when a country leaves the EU. This has never been used – until later this year.

Friday’s stock lost about $2 trillion [US] of its value while the British pound had a 31-year low. Stock markets plunged all over.

Gold surged by 4.7% to around $1,322US – the largest one-day gain in 3 years when it hit around $1,900US. Oil even dropped 5%.

The EU may be harsh to Great Britain to make sure no other country even thinks of leaving the EU. There have already been rumblings in various countries like The Netherlands and France [primarily from the far right].

The punishment will make it difficult Great Britain to even have some connections that Norway and Switzerland have. Both aren’t part of the EU but have some of the EU benefits and share some of the 23,000 EU laws.

Scotland, missing on separating from the UK a little while back may push for another referendum as they overwhelmingly supported to stay in the EU. This time to split from the UK and then join the EU on their own.

Great Britain was one of the original countries of the EU and was a leader in writing some of the regulations and laws.

To further complicate things The Netherlands France and Germany have national elections all within the next year or so.

Immediate issue is the 3 million EU nationals in Britain and 1.2 million Brits in the EU.
In addition, with the economy sinking and unsure of any rebound, the world’s largest economy, the United States, will have their election in November and a possible Donald trump win could further cause a second half of a one-two punch to the world economy.

Oddly, aside from gold, two of the biggest gains on the day were from the tobacco and booze industries.

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About ebraiter
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