What’s the Significance of Brexit on Our Presidential Election and the Economy?

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What Is Brexit?

As you probably already know from the recent news headlines, Brexit is short for the U.K.’s vote on whether to have Britain exit the European Unit (EU). The vote was about 52% to “Leave” the EU and 48% to “Remain” within the EU. By the way, this was the opposite of the recent polls in the U.K. that signaled the “Remain” campaign would prevail.

The vote seemed to follow a pattern of establishment and elites vs. those not part of the establishment or the elite in the U.K. The Brexit vote was a victory against the establishment.

What Does It Mean to the U.K. and the European Union?

Clearly, this was a pro-freedom and pro-growth vote and outcome for Great Britain, while it was a psychological and economical setback for the EU and British establishment elites. Some believe that this was a clear rejection of the EU attempting to move from an economic union to a political entity. Now, at least 8 other countries are discussing referendums to exit the EU. These include:

  • France
  • Italy
  • Austria
  • Holland
  • Finland
  • Portugal
  • Hungary
  • Slovakia

The EU might counter this breakup sentiment with a call to unify the EU further into something resembling a German Superstate or a United States of Europe. If this were to take place, armies, economies, and even borders would coalesce together. It might be a single country in effect.

It’s also possible after the Brexit takes place, English will no longer be an EU language, since the U.K. was the only member nation to have English as its official language.

Of interest is the fact that Brexit might prove to be a catalyst for Scotland to attempt once again to try to leave the U.K.  It previously failed to achieve independence in a vote on September 18, 2014. In the Brexit vote, Scotland voted by 62% to remain in the EU. It might try another Scottish independence vote.

What’s the Impact on the Economy?

Short Term. In the short term, markets will likely be volatile as investors sell investments they believe will be adversely impacted. But, at the same time, investors will scoop up other investments they believe will likely go up. Think of it as the rearrangement of investment portfolios to reflect market events.  Overall, it will probably benefit the U.K.’s economy due to more economic freedom and fewer EU regulations.  Trade might be enhanced as well due to fewer complexities.

Long Term. For the U. S. economy, we might expect closer economic ties and trading with the U.K.

What the Impact on the Historic and Critical 2016 Presidential Election?

Brexit is historic for the U.K.  It is also a leading indicator for what I predicted in my new book Great News for America. The rejection of progressive socialism within the U.K. and the EU follows in parallel with America’s rejection of progressive socialism that I have been predicting for over a year.

I believe the current polls are not accurately forecasting the upcoming presidential election and the likely conservative presidential election landslide that is on the horizon. There are solid reasons why the polls are off at this time in my opinion. I might do a separate blog post in July explaining the reasons why the polls might be considerably off at this stage in the election process.

What is a Zeitgeist?  What’s the Zeitgeist in 2016?

A “zeitgeist” is the spirit of the times (from the German language = zeit or times + geist or spirit).

Today’s zeitgeist is for freedom and morality in government (removal of corruption and cronyism) as well as peace (removal of the threat of terrorism at home) and prosperity (jobs, economic growth).  Dealing effectively with the problem of illegal immigration is also part of the zeitgeist.

I think the voters will speak clearly and concisely in this year’s presidential election.

For More Information on This Year’s Presidential Election plus All of My Ten Surprising Predictions

Please read my new book Great News for America.  In it, I make ten surprising predictions that will probably come true before, during, and after the 2016 presidential election.  I also discuss in Chapters 5, 6 and 7 the political party realignments of the Republican Party, the Democratic Party, and a possible new third party.  It’s available in a print edition from Amazon and other book sellers.  It’s also available on Kindle and other e-book devices.