We’ve been hearing a lot of people employ a lot of scare tactics about how terrible the exit of Britain from the EU would be. Nonsense. Regrettably, the people who create that BS are also the manipulators who are so often successful in fleecing a majority of investors. As we see the ups and downs in the exchange value of the British pound, we see them in action yet again. They will manage to scare people into and out of that currency, and they’ll coin a great deal of money doing it
In reality, Brexit will have little to no effect on the UK, at least in terms of economics. The gains and losses will cancel each other out. That is because the key reason Brits want to withdraw has nothing to do with economics. It is about taking back power over their own country, and walking in step with their own drummer.
If the UK withdraws from the EU, a trade deal with America will immediately happen. It will not be something at the “end of the line” as implied by the propaganda spewed forth by Obama and Cameron. Furthermore, when formal EU membership ends, it will be immediately replaced by some sort of association or trade agreement that provides a similar level of free trade but without control by Brussels.
Why will these two things happen, making the so-called “Brexit” a non-event? The answer is very simple. It is in everyone’s interest and everyone knows it. Companies in America will lose money if a trade deal isn’t immediately struck with an independent UK. Companies on the continent would also lose money upon losing access to the British market. Same for British companies with respect to access to continental European and North American markets.
The ups and downs of the Pound Sterling are irrelevant to the big picture. They represent nothing more than attempts by a cabal of manipulators, in the currency markets, to collude in capitalizing on innocent investor’s fear of the unknown.