Political Implications from Brexit
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Many are concerned with the financial implications of Brexit, here are our thoughts on the political implications.
On reflection, the “leave” result for Brexit is incredible.
The majority of the ruling political party was in favour of “stay”
The majority of the opposition political party was in favour of “stay”.
Yet the majority of the population voted for freedom from bureaucratic dictatorship.
JPMorgan and Airbus are already threatening financial punishment, and I’m sure penalties will be extracted by the EU bureaucrats.
Re-unification of Ireland may result. …. Perhaps it is time.
Scotland may be determined enough to leave Great Britain; at a substantial financial cost.
But perhaps Liberty and self-determination trumps Westminster rule. Perhaps there is enough cultural divergence to warrant it.
Gold price volatility is lower, meaning a volatile event is still anticipated:
Great chart; thanks for pointing that out. The daily version is also worth a look. Gold price vol is a long way from even the February ’16 high of 31.60…
Hi Mathew:
Great chart as usual.
What was the cause for that 31.60 spike?
Interesting point Fran Six
Bit of a surprise since the gold price is up substantially, and at the end of quarter.
Business as usual? Wow what a whopper.
All we keep hearing now from the ones that got it wrong, and the banksters, and the elicit it’s is it is not another Lehman moment.
It is not another Lehman moment
It is not another Lehman moment
If that’s all they keep saying rest assured it could very well be another Lehman moment
Only much much worse!
Sunday night will be very very interesting
La lunga notte became la lunga giornata
Now it is la lunga week-end
But James,
This one does not imply financial failure. does it?
All we keep hearing now from the ones that got it wrong…
I got it wrong. I admit it. However, winning the vote and getting out are two different things. I think our rulers will find a way to keep Britain in. They don’t give a damn about the little people and certainly don’t think the little people get to decide the course of world events.
As far as the US conventional markets, I think the powers that be will be able to keep this crack addicted economy limping through November so I expect today’s carnage to be temporary and the markets to go back up, probably to new highs. I think it is next year or possibly the year after when the SHTF.
Yup, I got it wrong too Ebolan and I agree with you that this is not a done deal. Two years is a long time to sort out a sovereign divorce and during that time almost anything can happen to change the course of history. Just look at what happened with Greece. They voted “No” to more austerity and got it anyway. Voting in Europe is just a big fat joke on the public. I just assume there will be another vote anyway with a whole new question.
I think usually voting most everywhere is a big fat joke on the public.
You can bet that the people who run things will blame those backing the exit for anything and everything that goes wrong with the economy and markets from here on out.
Gold will take care of itself.
But will the economy survive any reappraisal; that worries me.
I believe the stock market is over-valued by any rational metric.
Well of course it is dramatically over valued!
But it is hard on me mentally to go short, when I KNOW the rulers manipulate and prop up the market.
I hope that doesn’t happen regarding the “success of the leaders”, Eddie.
Yes it certainly can be difficult to go short.
Even Peter Finch, winner of the first-ever posthumously-awarded Oscar, was born in England.
Great day for the Brits.
Big gap down of 500pts on the Dow ,sould keep the Fed busy…….
HUl looking good.
Indeed…
Nice chart.
Matt,
Then why aren’t we not at Rick’s $1380 gold target? This is the perfect game changing moment no?
Also now that gold has gapped up, are we looking at a $1250 floor in the gold price going forward?
I don’t know why gold is not 1380 but it, and higher, is coming. I’d like to see the week close at 1312 or higher but I am not worried about a large decline either way.
My opinion is that investors are truly in a brief wait and see mode, Confused.
Sorry I meant $1256 floor
That’s an excellent point about the US elections Rick and you are probably right. I think we got bamboozled by the pollsters on this go round. Just the fact so many elections come down to such slim margins in the first place is suspicious enough but then being goaded into believing the unbelievable by pollsters who are just part of the herding process is just adding insult to injury.
There appears to be a significant correlation between (leave vote minus remain vote) versus new immigrants population given by the 2011 census. This seems to be the primary determinant, compared with an area’s average age, or average income, or employment data.
(The employment data is not in good statistical form, and I was just looking at maps)
The transitition bargaining is going to be very interesting.
It will be interesting to see how quickly France and Germany drive forward further EU integration. I suspect this may hasten a design of a no-leave integrated treaty, with central EU Taxation, standing EU armed forces, etc.
Gold may reach 1400, but I believe that a global deflationary bust is coming that will take gold down to an eventual target of 500. Brexit has caused some volatility and caught a few traders on the wrong side. The S&P continues to meander just below the all-time high from May 2015. It sure looks like a topping process to me. The fed has lost control. I feel very strong about this after watching Yellen’s delusional babbling this week.
Velma, the Federal Reserve Note is just one more debt that will deflate. Sure, it could go much higher versus its paper peers, but it will still plunge in purchasing power.
The USDX looks terrible when priced in gold despite today’s action and is down 24% since its late November high…
Trump is for America first, I believe he wants to give America a rest from foreign entanglements. He has talked about being amenable with Putin, he wants to reach out to him in a manner of cooperation. America needs healing, and normalcy. He should build up the country’s infrastructure, but let things alone. Give industry and trade a chance to make profits. What the country needs now is a President who has integrity, is friendly towards business and a disposition to understand how to get people to like you so the economy starts moving again. Not as easy as it sounds but Trump can do this if you have watched celebrity apprentice. DT
DT…Perhaps the Brexit will help to show the American voters that there is a different way to vote. People have the power to change things, they just have to believe in themselves.
IT, The world must never forget the importance of The Magna Carta, I hope there will always be a Britain. DT
The first domino has just toppled. The sensible plebs in the UK did it.
They have sent a very strong message to the rest of the sensible plebs in Europe that toppling dominos is not difficult .
I bet yesterday against the $ and for the Pound. Glad I hedged with leveraged silver and a SOLID mining company Avino.
This was the second Battle of Britain, a resurgent Germany almost conquered Europe again but Britain stood alone on the island and defended their culture and lifestyle. Winston Churchill would be proud of his nation’s history. DT
great show! love my Rick!
I love you guys! Hillery for Prison 2016!
Thanks Rick