I don’t think most people understand just how much danger the global economy is now in after Brexit – The largest loss of wealth in the UK since 1921 happened over five hours – we are in unchartered waters and the ramifications are enough to push the planet into a dangerous depression.
The initial shockwave about to hit fragile markets barely strong enough to keep their heads above water despite printing Billions upon Billions for a corrupt banking system will be worse than 2008.
We have an undeclared currency war erupting, Countries and Governments are swamped in debt above their ability to pay back, climate change disrupting production chains and Central Banks needing to charge negative interest rates all point to a global economy already on its knees.
Brexit is a terminal blow.
I didn’t think the British would leave the EU because I didn’t think they were so masochistic, but the inability of the political elites and corporations that have benefited from globalisation to understand the anger of working classes being hurt by the extra competition has seen the great dream of a unified Europe end.
Let’s be clear – this is a shocking result because it turns everything on its head. We have already seen deep plunges on the NZ, Australian and Japanese markets, the Sterling is in fretful, Germany is hurt, France has hurt and the Dow Jones was picked to open 700 points down.
We’ve seen this all before, the stock exchange collapse in 1929 led to protectionist domestic policies, which in turn created worse economic conditions and ultimately led to war. Right now, Europe will be splintered, Russia will become more aggressive, China and American stock markets will get smashed over night and the tiny global growth predicted for this year looks delusional after this event.
The irony of the British wishing to escape the parts of globalisation they didn’t like could in turn create a global economic collapse that a burns them as badly as it burns everyone else.
Brexit is a result of the working classes being hurt by globalisation – the challenge for Democracy is how to make globalisation work for all at a time when the global economy is in meltdown.