Friday, June 24, 2016

Britons Leave Vote Call To Independence #BREXIT

News
The Leave vote, a call for Independence from a majority of Britons to retain their sovereignty despite the campaign of fear, appears to have been too great for manipulation or legal shenanigans (at least for now). As the Leave vote widened it's lead last night, spreads widen and volatility increased as traders withdrew from currency, bond, and stock markets. The Pound fell to it lowest level in 31 years and US stock futures tumbled. Exaggerated moves are common during the illiquidity of panics.

EU supporters will point to the rising volatility as an indication that 'Britons made a mistake', but are only short- to intermediate-term reactions as the majority, a day late and dollar short in terms of timing, become the bagholder of yet another trend transition. Smart money, the minority that fades the intentions of the majority, will be buyers of the Pound, US Stocks and sellers of bonds when the majority turns bearish and pessimistic and bullish and optimistic (towards bonds). Insight subscribers/readers use the COT Matrix and Reviews and Charts to time this transition.

David Cameron, a proponent of the EU at all cost to Britain, announced he will resign as prime minister this fall. Britons should be cheering this decision. Americans would never allow its laws, treaties, and trade deals to be negotiated by non-elected officials from another country. All Americans, regardless of their political beliefs, should offer nothing but support for Britain. Those that don't represent a form of governance voters across the world are rejecting.

The consequences of a BREXIT will not be limited to Briton. A BREXIT, GREXIT, or any other 28 member withdrawal, a move that would allow the exiting country to devalue their currencies, deregulate, and move towards economic growth rather than contraction, will encourage other struggling economies to follow. Europe's majority demands prosperity, not austerity. The EU and Euro's demise is only a matter of time.

Headline: How Brexit spelled the end to Cameron’s career

David Cameron did not want to hold an EU referendum and for years he resisted the idea. Then on the morning of January 23, 2013 his party forced him to deliver a speech that foreshadowed his own political destruction.

It was the beginning of a road that led to his announcement on Friday of his resignation as prime minister, with the plan to have a successor installed by the time of the October Conservative party conference.


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