From an economic point of view, Brexit is not a big issue as we have already warned many times. We informed our readers beforehand that fear-mongering by Soros, Zerohedge and their likes would result in an unjustified market sell-off. We do not believe that global economy is doing fine, and we see enormous trouble ahead. With the absence of a sustainable global growth, hedge fund managers try to create turbulence in the market to reap a profit.
In the first seconds of June 24 trading day, just as the Brexit results were announced, the losses (and profits) due to the engineered panic were gigantic. If we only take a closer look at the numbers for the ESX, DAX and FTI futures, more than 200 million euros evaporated within one day. Because this is a zero-sum game, somebody must have made unbelievable profits.
FESX (ERUOTOX 50): Friday, June 27: 41.051 contracts were sold within the first trading minutes at 2650 points, while the same day the closing price was 2729 points (contract price is 10 euro per point)
Total intraday losses amounted to 154.762.270 euro.
Monday 4 July FESX stood at 2872 points.
FDAX: Friday, June 27: 41.051 contracts were sold within the first trading minutes at 9281 points, while the closing price was 9478 points (contract price is 25 euro per point).
Total intraday losses amounted to 60.212.750 euro.
Monday 4 July FDAX stood at 9762 points.
FTI(AEX): Friday, 27 June: 306 contracts were sold within the first minutes, at 381.15 points, while the closing price was 419 points (contract price is 200 euro per point).
Total intraday losses amounted to 4.161.600 euro.
Monday 4 July FTI stood at 436 points.
Brexit is not likely to bring about large changes for the world leading financial institutions. The consequences for London as a financial centre are not dramatic; contrarily, without oversight from Brussels, Washington or Beijing the City will thrive more than ever, it will become a commercial free haven, which will be a compensation for it in case some of the big corporations and American banks relocate to a European city. Rubert Murdoch said once: “When I go into Downing Street they do what I say; when I go to Brussels they take no notice.”1)Anthony Hilton: Stay or go – the lack of solid facts means it’s all a leap of faith Source Evening Standard 2016-02-25
Brexit is primarily a political event that will send shock waves through the continent. The mainstream media and the political pundits are trying to explain the damage away by arguing that the youth was generally for remaining in the EU. The reality is much grimmer. Only 36% of the voters between 18 and 24 cast their vote. Youth turnout has been an all-time low2)Brexit: everything you wanted to know about turnout by age at the EU referendum, The Financial Times 2016-07-01..The British youth have always taken small interest in the European Union. When in 2007 Franck Biancheri started Newropeans 3)Franck Biancheri, Wikipedia., the first grassroots Pan-European democratisation movement, he could find nobody in the UK to support this initiative. From the very beginning, we have been arguing that Brexit is a real possibility. That said, France, Germany or the Netherlands leaving the euro and the bloc is a different story.
The Eurosceptic and national parties like FN in France, AfD in Germany and other countries will be more efficient if they unite at a European level rather than copycat the UKIP’s strategy to focus on a Brexit. Britain is not Europe!
In Britain, we expect that the restriction on European immigration as a result of Brexit will be compensated for by immigration from the Commonwealth: Pakistan and India.
Brexit is a crack in the European alliance and a wake-up call for the bureaucrats in Brussels. At the same time without London, it will be easier for Brussels, Berlin and Paris to integrate the European Union into an even closer political entity disregarding the wish of the people.
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