Brexit is Only a Symptom – Not the Problem!

There are many reasons for Americans to be concerned with today’s economy and if you ask ten different people, you’ll probably get ten different answers, ranging from Treasury yield inversion, to an oversold stock market, to an out-of-control national debt, just for starters. They are all valid concerns and when you extend such concerns to the global economy, Brexit and the upcoming exit date of the United Kingdom (UK), with or without a deal is quickly brought to your attention. It’s become a sensational topic and the April 12 deadline is rapidly approaching. But as usual, mainstream media has people caught up in the frenzied sensationalism and completely oblivious to the true reality.

Sensationalism sells books, tabloids, and newspapers. It’s the kind of popular headline excitement that gets eyes on the tube and ears on the radio, which readily converts to advertising dollars. But realistically speaking, it’s about as useful as a freezer to an Eskimo. With all the excitement, confusion and perilous possibilities, it represents the best of headline news. But it’s no more important than all the rest of today’s fake news, because it dilutes, obscures, and even causes rationally thinking people to completely miss the most important point of all. Yes, Britain and the UK are leaving the European Union (EU), but they are essentially doing nothing more than being the first to jump overboard from a sinking ship. Britain’s economy is the world’s sixth largest, with an annual Gross Domestic Product (GDP) of $2.8 trillion. But the EU, with a GDP of 17.3 trillion is the 2nd largest global economy. It issues the world’s second-most widely used currency and the Union’s very fabric is coming unraveled at the seams, on a daily basis.

Like it or not, a global trend seems to be that many countries, including the United States (US), desire a return to their cultural and economic roots and individuality. Northern Ireland is a centerpiece of the Brexit “deal” controversy, but there’s also a very good chance Scotland will withdraw from the UK before too long. It’s quite possible that the Catalans and Basques will eventually secede from Spain and that Belgium breaks into a French-speaking Wallonia and a Flemish-speaking Flanders. Meanwhile, mainstream media has barely mentioned these trends and certainly hasn’t raised any concerns. The growing potential of the EU’s demise has played out in plain sight, with a complete lack of public understanding or concern. The Lehman Brothers bankruptcy managed to trigger global consternation in 2008 and they only had $619 billion in debt on their books. At this point, Eurozone governments have issued $11.3 trillion in debt and Eurozone corporations have issued at least another $11.5 trillion in corporate debt.

If (when) the EU breaks apart, the entire debt will be at risk and no one will want to hold it. The process has been eerily reminiscent of the rapid and behind-the-scenes demise of the USSR, in 1991. But make no mistake about the fact that a collapse of the world’s second-largest economic power will shake the global economy to its core and beyond. It will generate economic and geopolitical repercussions not seen since World War II. While many investors lost as much as 70% between 2008 and 2011, GOLD – the ultimate and original “crisis currency” – grew 142%. Protect your portfolio and your legacy with the proven power of gold. Call the experts at American Bullion, at (800) 653-GOLD(4653). They will quickly educate you on what gold can do for you. Today’s lower prices are just a bonus, but procrastination can be expensive. So don’t wait for the bandwagon. Call (800) 653-GOLD(4653) today!

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