Friday, 24 June 2016 12:39

Markets React to the News

In a vote which appeared to shock many nations around the world, the UK opted to leave the European Union. After the “Brexit” results, British Prime Minister, David Cameron, announced his resignation. Scotland’s First Minister, Nicola Sturgeon announced that a referendum for Scotland to break free from the UK and join the European Union should be expected. Leaders of a similar anti-European Union party in the Netherlands were calling for their own referendum which was coined “Nexit.” Members of the European union mentioned early in the day that nothing was officially in place. Citing the necessary document, article 50, had not been signed, leaders from both the UK and other EU nations mentioned there was “no need for hurry” early in the day. Later in the day, EU leaders met in Brussels and issued a statement that they were prepared to “launch negotiations swiftly” with the UK regarding terms and conditions of the withdrawal.


Markets React to the News:

It was global stock markets which expressed the initial surprise, as investors went into what can only be described as “panic mode.” Over 2 trillion dollars was estimated to have been lost in world market wealth today, according to many financial experts. At one point the FTSE 100 fell more than 8% and the pound plummeted to a 31 year low. Stock markets throughout the world were significantly impacted and several leaders of various European Union Financial corporations expressed grave concern for the potential fallout. Recession was a topic of conversation by most financial experts and a potential period of instability lasting as long as 10 years was predicted.


A Vote With Two Official Meanings:

What does this vote mean in the UK and the rest of the world? It can be summed up best by dividing the answer into two categories: Corporations and People.


*Corporations:

The European Union, despite what is implied, intended or publicized, is nothing more than a giant corporation. Corporations exist to make a profit. Despite any and all fallout with respect to the social aspects, a board of directors, whether they are made up of business people or world leaders has virtually the same function. Regardless of publicity campaigns, humanitarian causes, or any other subject which is not measured quantitatively by “profit or loss” the goal is to maximize financial gain.


*People:

As many civilizations have demonstrated throughout the history of the world, people eventually refuse to be categorized as “inventory” or “operating costs.” The vote to exit the European Union was a vote driven by emotions from a population who simply felt exploited by the entire centralization process. It was immigration which appeared to be the top concern which drove the voters out in force to express their dissatisfaction.


A Rose May Smell Differently According to Name:

In a world culture where being one of many is accepted as progress, the citizens of the UK decided to notify world leaders that their message was not working(except for Scotland, it appears.) Certainly, a large group banding together can create greater financial strength and political bargaining power. These large groups carry labels like “unions”, “syndicates” and “alliances.” Banding together to protect the people is a noble cause, one not normally associated with big business. When forming a group which leans toward the exploitation of people and threatening them with possible bad consequences if they express defiance, other descriptive words may be applied. “Racketeers”, “gangsters”, “bullies” and “thugs”, top the list of terms which a group of citizens can apply in specific situations. Thus a “European Union” called by a different name by 52% of Brexit voters, may not smell as sweetly.

A Monologue which Will end in Dialogue:

British voters have made a statement which is already being echoed by other countries throughout the world. Their message is simple, but profound - leaders of countries or even top officials of a group of many countries are still nothing more than servants of the people. The European Union may have just started receiving the first of many messages to come from the free world. Freedom is a powerful drug, it has motivated many tiny voices to cry out as loudly as possible in order to be heard. Once the message is heard from the brave few, it becomes a conversation which may ultimately result in the “roar” of a crowd. It takes a tremendous amount of passion and courage to stand up in the face of potential ruin, but that remains the “stuff” on which the strongest nations are founded.

 
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