The Brexit Vote Could Change EVERYTHING And Plunge Europe Into Financial Chaos
By Michael Snyder/Economic Collapse Blog June 16, 2016
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On June 23rd, a vote will be held in the United Kingdom to
determine if Britain will stay in the European Union or not. This is
most commonly known as the "Brexit" vote, and that term was created by
combining the words "Britain" and "exit".
If the UK votes to stay in the European Union,
things over in Europe will continue on pretty much as they have been.
But if the UK votes to leave, it will likely throw the entire continent
into a state of economic and financial chaos.
And
considering how bad the European economy is already, this could be the
trigger that plunges Europe into a full-blown depression.
So
if things will likely be much worse in the short-term if Britain leaves
the EU, then it makes sense for everyone to vote to stay, right?
Unfortunately,
it isn't that simple. Because this choice is not about short-term
economics. Rather, the choice is about long-term freedom.
The
EU is a horribly anti-democratic bureaucratic monstrosity that is
suffocating the life out of most of Europe a little bit more with each
passing year. So if I was British, I would most definitely be voting to
leave the EU.
And in recent days, the campaign
to leave has been rapidly picking up steam. In fact, two of the latest
major surveys show that "leave" has taken the lead...
An
ORB poll for the Telegraph showed 48 percent of Britons would vote to
remain in the European Union, while 49 percent would vote to leave.
A YouGov poll for the Times of London showed 46 percent preferred to leave, while 39 percent wanted to remain.
Two other recent polls have "leave" ahead by 10 points, and there is another that actually has "leave" winning by 19 points.
The
"leave" movement got a big boost just recently when the Sun officially
endorsed that position. The following is an excerpt from the editorial
that announced this decision...
WE are about to make the biggest political decision of our lives. The Sun urges everyone to vote LEAVE.
We must set ourselves free from dictatorial Brussels.
Throughout
our 43-year membership of the European Union it has proved increasingly
greedy, wasteful, bullying and breathtakingly incompetent in a crisis.
Next Thursday, at the ballot box, we can correct this huge and historic mistake.
It is our last chance. Because, be in no doubt, our future looks far bleaker if we stay in.
I
must say that I agree entirely with the Sun. However, everyone needs
to understand that a Brexit would be incredibly painful for the UK and
for the rest of Europe in the short-term. I think that Ambrose
Evans-Pritchard of the Telegraph made this point very well in his recent
column...
Let there be no illusion about the
trauma of Brexit. Anybody who claims that Britain can lightly disengage
after 43 years enmeshed in EU affairs is a charlatan or a dreamer, or
has little contact with the realities of global finance and geopolitics.
So what could we potentially see happen?
Well, for one thing big banks like Morgan Stanley are warning that the euro and the British pound could take big hits...
The
pound and the euro will be hit on a Leave vote, but even if Britain
decides to stay in the EU, there will be only "modest gains." Morgan
Stanley expects the pound "to weaken immediately on a vote to Leave, but
by year-end we think Euro could weaken even more."
Secondly,
there is a very strong probability that financial markets all over
Europe could horribly crash, and the European Central Bank and the Bank
of England are already promising to provide artificial support for the
markets if that happens. The following comes from Reuters...
The
European Central Bank would publicly pledge to backstop financial
markets in tandem with the Bank of England should Britain vote to leave
the European Union, officials with knowledge of the matter told Reuters.
The
preparations illustrate the heightened state of alert ahead of the June
23 referendum, which will help determine Britain's future in trade and
world affairs and also shape the EU. The pound and euro have lost value
on fears a Brexit could tip the 28-member bloc into recession.
Such an announcement from the ECB would come
on June 24 if an early-morning result showed that British voters had
chosen to leave the EU, according to the sources.
But
no matter what the consequences are, British voters should do what is
right for their future and for the future of their children.
If that means leaving the EU, then so be it.
Needless
to say, the prospect of "leave" winning has many among the European
elite in full-blown panic mode. For instance, just consider what the
current chairman of the Bilderberg Group is saying...
Just day after their mysterious annual meeting in Dresden, it appears The Bilderberg Group's gravest concern is Brexit.
While
everything from The Middle East to Donald Trump was on the agenda, the
remarks this week from AXA CEO (and Chairman of The Bilderberg Group)
Henri de Castries that there is an "extremely high" probability that the
U.K. will vote to leave the European Union and investors will face "a
true landscape of uncertainties," suggest the establishment is
concerned.
Certainly the potential of a coming
"Brexit" was high on the list of priorities during their recent
conference, and it has been documented that the Bilderberg Group played a
key role in the creation of the European Union in the first place.
So of course they are not exactly pleased that their grand experiment may now be unraveling right in front of their eyes.
Meanwhile,
even without taking into account a potential "Brexit" things just
continue to steadily get worse over in Europe. On Tuesday, European
stocks hit their lowest levels since the stock market crash that ended
in February, and the stocks of both Deutsche Bank and Credit Suisse hit
all-time record lows...
The truth is that those
extremely prominent European banks are headed for a collapse even
without a "Brexit". But if there is a "leave" vote, that will just
accelerate the process.
And let us not forget that major stock indexes all over Europe are already in a bear market...
Meanwhile,
German stocks are in a bear-market, with the DAX down 23.2% from its
April 2015 peak. The French CAC 40 is down 21.8%. The Spanish Ibex 35
and the Italian MIB are down 31.4% and 32.6% respectively.
Here
in the United States, the smart money is dumping stocks like crazy
right now, and major investors such as George Soros are feverishly
buying gold.
So why are these things happening?
Do those "in the know" have some information regarding what is about to happen over in Europe?
For
a long time, I have been sounding the alarm about Europe. If the
British people vote to stay in the European Union on June 23rd, the
crisis in Europe will certainly continue to escalate, it will just be at
a slower pace.
But if the British people vote to leave (which they should) that could be the trigger that changes everything.
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