Okay. I am awake. Yesterday’s vote in the United Kingdom to leave the European Union is a watershed moment in your life regardless of where you live. It is historic and it is but a symptom of a growing international sentiment against globalization.
Let me start with the relevance of this vote to the Trump phenomena. What the voters did to the establishment and the elite narrative in the U.K. is comparable to what voters in the United States are likely to do to the establishment here when they vote for Trump. The voters in the U.K were angry at the European Union passing and trying to enforce laws on the average person in the U.K. that, from the standpoint of those average souls, was unjust interference in their liberty. There also was anger at stagnating economic conditions and the favoritism being shown towards immigrants at the expense of British nationals. The vote to leave the E.U. was seen as an act of defiance against the internationalists and the status quo. We are seeing this same phenomena in the United States and, just like the elite in the U.K., our own power brokers are ignoring the looming Tsunami of voter anger.
If you watched the coverage of the aftermath of this voting massacre of the status quo you would have felt you were on the threshold of Dante’s Inferno because the pundits were screaming, “Abandon all hope ye who enter here.” While there is likely to be short term economic turmoil with currencies fluctuating up and down, this probably will not be the financial disaster that the elite are predicting, at least in the U.K.
The short term effect in the United States is that U.S. dollar will be further strengthened. That means we will pay less for foreign oil but the effective price of things made in the United States will increase. That means fewer exports and a damper on manufacturing here. On the other hand, our financial institutions will have ample supplies of dollars and, in theory, should be able to make a lot of loans which could in turn have a stimulative effect on the economy.
The real effect is the political fallout. This marks the beginning of the end of the European Union. Time to short that bad boy. France and Spain will likely be the next to exit and, once different countries start heading for the political exit, the E.U. will fall apart.
Thursday also was a horrible day for Barack Obama. Mr. Nobel Prize’s exhortations for U.K. voters to stick with the E.U. were rebuffed. Although the media sought to portray the vote outcome as “razor thin,” at 52% win normally, in the U.S., is described as a significant, major victory. In 2012 Obama won 51.1% of the vote compared to Romney’s 47.2% and I do not remember anyone on the Democrat side insisting that Obama eked out a narrow win.
Add to this the Supreme Court rebuff of his efforts to use Executive Orders to circumvent the will of the Congress. Yes, the Court split 4 to 4 and upheld the ruling of the lower court that essentially scolded the President for over reach. Had Justice Scalia still been alive the result would have been 5 to 4 against Obama.
The rejection of the status quo in the U.K. is comparable to the rejection of the status quo here in the United States. And Hillary Clinton is the status quo candidate, which is why she will not win in November barring a complete collapse of Trump.
The political left loves “Globalization” and the myth that everyone is the same. In truth the Globalization push favors the large corporate and financial interests at the expense of the poor and the middle class. That inequity has sparked this 21st Century revolt and is a major force driving the success of the Trump.
LAST NIGHT’S INITIAL REACTION
This is a short note. I need to get to bed. But tonight’s stunning revolt in the United Kingdom in which a majority of UK voters have decided to say good-bye to the European Union. The same themes that are driving the Trump candidacy were driving the campaign to exit the EU–national sovereignty, immigration control and economic independence.
I stayed up to watch the election coverage from the UK. The establishment and the political elites were lined up for staying in the EU. But the people spoke. The main stream media is “shocked.” Sound familiar?
Tonight’s reaction by the elite is filled with dire predictions of doom and gloom. The coming months will tell the true story. If the UK weathers this transition and regains control of its economy and its immigration then that will further bolster the Trump campaign.