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June 25, 2016 | The Impact of BREXIT on the EU

Martin Armstrong

Martin Arthur Armstrong is the former chairman of Princeton Economics International Ltd. He is best known for his economic predictions based on the Economic Confidence Model, which he developed.

Euro-Symbol

The true impact, on Britain and on Europe, will start to become visible rather quickly.  It is absurd to think that anything has to change in respect to trade between the EU and Britain. What this  means is really that Britain will not be subservient to Brussels and would be in the same position as the United States. However, our sources are telling us that the EU will try to punish Britain, as they did the Greeks, for having the audacity to reject their superiority. This may become more of a nasty divorce where when a couple moved in together the wife hated his lucky lazy-boy to watch games. In divorce, it will cost him $50,000 in legal fees to get the lazy-boy back that she threatened to throw out many times. NATO is nothing without Britain. Indeed, Europe is incapable of defending itself without Britain and the USA.

The Scottish are threatening to hold their own referendum to separate from the UK and remain in the EU. That too is insanity. Sottish independence is one thing. To remain in the EU is to surrender their independence and become subservient to Brussels. Ireland wants a referendum to unite North and South. That will probably only result in civil war. Britain should step out and let them duke it out.

When the markets crash in Europe as Brussels tries to outlaw short selling to prevent markets to go against the politicians, this means that Britain will remain as the place to do business and Euro will suffer. The banks were just doing what the establishment told them to do. The threats that banks would leave makes no sense whatsoever.

Meanwhile. the arrogance and threats of Obama who told the Brits back in April they had to go “to the back of the queue” and would not be able to strike a trade deal with America “any time soon” if it leaves the European Union, has shown just what politicians have become – buffoons who will say anything to win the moment. Now Obama said: “The people of the United Kingdom have spoken, and we respect their decision. The special relationship between the United States and the United Kingdom is enduring, and the United Kingdom’s membership in NATO remains a vital cornerstone of U.S. foreign, security, and economic policy.” He continued: “The United Kingdom and the European Union will remain indispensable partners of the United States even as they begin negotiating their ongoing relationship to ensure continued stability, security, and prosperity for Europe, Great Britain and Northern Ireland, and the world.”

Vice President Joe Biden said: “I must say we had looked for a different outcome. We would have preferred a different outcome … but the United States has a long-standing friendship with the United Kingdom and that very special bond will endure.”

So much for go to the bank of the queue. There are trade agreements already in place with Britain. Nothing new needs to be negotiated.

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June 25th, 2016

Posted In: Armstrong Economics

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