While many of you might not be in the U.K., or a part of the E.U., the E.U. Referendum influences us all. For those who are unaware, today, on July 23rd, 2016, England is voting whether or not to stay a part of the European Union.
The E.U. was formed just after World War II in an effort to boost economies after the devastation of the war. The United Kingdom (Comprised of Scotland, Wales, England and Northern Ireland) was crawling, economically, as was Germany and a great many other countries. The joining of forces, and the combining of one currency (the Euro) brought Europe back into a good place. In comparison, it has usually always been of a higher value than the American dollar (though to be fair, has sometimes been equal to). The U.K. kept their pound, which has kept doing better than the euro (at least during my lifetime), though has participated in the other benefits the E.U. has offered.
The European union also allows all its members to be able to cross boarders within its countries to work without the “red tape”. This means that people from France can go work in England, in Germany, Spain, etc., without a work visa, for example. The complaint by many of those in England, is that this is the downfall of their membership in the E.U..
The claim is that too many people from outside the U.K. are coming and taking their jobs, shipping their money back to their own countries, and bleeding the economy. However, what is neglected to be mentioned, is that just as many, if not more, citizens of the U.K. are doing this to other countries.
So what does this have to do with the rest of the world?
Coming from an American standpoint, we are allies with the U.K., and thus, we are obligated to help them in their endeavors, and that might include a recession which is very likely to follow should they separate from the E.U.. What’s more, since all countries are connected by their trade, if one country goes into recession, they all do (recall 2007?). An article posted by The Gardian states:
The biggest concern in Washington is not just over the waning influence of its most important diplomatic ally within Europe, but the destabilising effect an exit could have on the continent as a whole. If other member states follow suit, the EU itself could slowly unravel, leaving it vulnerable to growing Russian economic influence and perhaps weakening Nato too. The western alliance, constructed after the second world war and a cornerstone of US influence in the world, could have a deep crack running through it by Thursday.
Now, combine this with the potential of Donald Trump becoming president, who is already on very thin ice with the rest of the world, and the U.K. parliament has already had a vote as to whether or not they want to let him in their country, and this could end in a sever break up of world alliances. Throwing Putin, in Russian, into the mix, makes for an extremely dangerous combination. What’s more, since this move is unfavorable to those in power in London, their Prime Minister, David Cameron, would no longer be P.M., and thus, as a new U.S. president steps up to the plate, as would a new P.M..
If circumstances were different, the changing of the leadership guard in both the U.S. and the U.K. at the same time would not be a bad thing, or really anything to note. However, with the anger that is in both countries, the rashness without full education which is rising up, this could severely devastate everyone involved.
You can read more information on how it will influence the world at this very informative Wall Street Journal article, “A British Exit From the EU Would Have Global Consequences.” You can also view a projected financial analysis from the Global Research website’s article, “Brexit Market Volatilit? The Big Financial Blockbuster. Three Scenarios.“