BREXIT Camp Strikes Major Blow to EU, What and Who Is Next?

June 24th, 2016 can be referred to as an historic day: the British people voted to Leave the EU. However, Brexit is not entirely fact yet. This outcome of the – not legally binding – referendum is merely the beginning of a process that will require a number of years to complete.

First step is to negotiate on the terms to leave the EU. This is called “secession” and this process may last 2 years according to Article 50 of the EU Treaty of Lisbon. Also, new agreements will have to be made between Britain and the EU. The EU might be hard on Britain as a warning sign to members states not to exit as well, which will likely be confused with a truly negative consequence of leaving the EU. A sanction, if indeed imposed on Britain, must be seen as such: a willful act just to scare off others who wish to follow Britain in its footsteps.

Cameron Resigns

Prime Minister David Cameron announced he will resign. As a fervent proponent of the EU having led the Remain campaign, he feels a new leader is needed to steer the country in the right direction now that the voters have decided they want to go in the opposite direction. The way he states it:

I do not think it would be right for me to try to be the captain that steers our country to its next destination.

Impact on Federal Reserve in the US and TTIP-negotiations

There are several other noteworthy observations to make in this light:

Janet Yellen, Chair of the Federal Reserve, now has a “great” argument against raising the interest rate in the US. We know the Fed cannot raise interest rates, because that will crash the markets. But their credibility is on the line, as they announced to raise rates this year. After skipping the rate raise this month, they now a “prefect” reason to refrain from raising the rate in the remainder of the year.
It will be interesting to see what the impact is on the negotiations concerning TTIP (Transatlantic Trade and Investment Partnership) between the EU and the United States. Will the outcome of this referendum stall or even completely block these negotiations?

Watch this episode of the Janssen Report here:

One more thing I want to note: we must stay critical of all developments in the political and economic arena. In my personal research over the last decade or so it has become clear to me that there is a global, elite agenda behind most of the big events. So we must also question this Brexit outcome, even if it is just to test our own opinions. Stay sharp, people!

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