There seems to be an undue amount of shock and awe pertaining to the Brexit vote. But my question to anyone suffering from that shock and awe is, “Where have you been?” How could this come as a surprise to anyone not living under a rock? Major global economies have introduced negative interest rates. Economic prognostications on the part of the U.S. Fed have been further from reality than a Cubs World Series title over the past hundred years. Banks that buried themselves in dangerous derivatives leading to the 2008 banking debacle were given a slap on the wrist, golden parachutes to the hierarchy responsible, and are now 25% larger, more dangerous and more careless than before. What could possibly go wrong?
On top of that, in case you haven’t noticed, the entire global class of “non-elite” has grown tired of the spoon-fed drivel provided by the elite, the central banks and governments that seem utterly out of touch with any form of reality. The players change, but the system doesn’t. Global citizens are demanding dramatic change at any cost, because the general feeling is that the global economic situation is terrible and a dramatic change of any type couldn’t be worse, only different. It’s horribly flawed logic, but the reality is that people are willing to risk everything to create a truly “new” situation. George Soros warned of this. Alan Greenspan points out that Brexit is just the tip of the iceberg. And Jim Rogers, another legendary investor has called the Brexit decision to leave, the beginning of an economic tsunami “worse than any bear market you’ve seen in your lifetime.” “Be careful what you wish for,” never before involved such potentially cataclysmic ramifications.