We already broke down some of the immediate consequences of the United Kingdom’s vote on a referendum to leave the European Union (aka, the “Brexit”) as the vote went down. As votes trickled in Thursday night, and it became more and more apparent that the referendum would finish in favor of a “Leave” decision, the global economy immediately began experiencing significant repercussions.
First: the value of the British Pound plummeted relative to the USD. After reaching 6-month highs leading up to the Brexit vote, the GBP plummeted by double digits by the opening bell on Friday morning.
Second: the volatile fluctuations in the value of the British Pound hit its highest levels ever.
Sidenote: We will break-down some more immediate repercussions of the Brexit vote in a Charts, Bruh extravaganza later today.
And in the midst of the global economic shockwaves that the Brexit results have sent, a political domino effect has begun to unfold surrounding the status quo of the European Union’s existence:
SOCK: The leading candidate to become the next prime minister of the Netherlands, Geert Wilders, immediately called for the Dutch to hold their own referendum on a decision to exit the European Union. It took a mere hours for Wilders to begin preaching rhetoric aimed at following the United Kingdom’s footsteps, on Friday morning.
Not so good for the European Union, as the Dutch represents the 6th largest GDP producer within the multi-nation group.
POW: Finland has already begun collection signatures in order to initiate a similar vote on a referendum to leave the European Union. The rationale for the country’s own Brexit, like many Brits who voted to “Leave”, is based rhetoric implying that citizens of the country are not truly “free” unless they shed the bureaucratic weight of the EU. However, this shouldn’t come as a major surprise. Over 50 Thousand citizens of Finland signed a petition to leave the European Union that was ultimately sent to the Finnish government.
While people rightfully believe the European Union’s governing body does not necessarily have their specific needs in mind… a continued domino effect of nations becoming increasingly more isolationist could pose an overwhelming crisis when it comes to the global economy. However, that is something to worry about in the Medium/Long-Term. As for now, just expect some more market volatility while nothing really changes for the UK for another 2 years.
ZOK: In a completely predictable turn of events, Scotland has now called to break away from the United Kingdom in an effort to remain as part of the European Union. Not only that, but the Prime Minister of Scotland, Nikola Sturgeon (who has a creepy resemblance to Angela Merkel), quickly noted that Scotland will attempt to block the Brexit vote altogether. This should come as no surprise considering:
- There is tense history between the people of Great Britain and the people of Scotland. Desire among the Scottish people to claim complete independence from Great Britain has existed for centuries.
- The majority of Scotland voted to “Remain” in the European Union. That majority was ultimately outweighed by the “Leave” majority in Great Britain.
Ouch: The Prime Minister of The United Kingdom, David Cameron, resigned on Friday morning. While Cameron is the leader of the Conservative Party, the British entity that campaigned for the Brexit, Cameron himself is a moderate politician who vocally campaigned for the United Kingdom to vote to “Remain” in the EU. Cameron’s wishes and efforts were ultimately shat on and ignored by the British people. Cameron’s resignation was due to a combination of 2 things:
- Cameron felt he should not represent a party in which the people clearly disagree with his ideology.
- There’s no way in fucking hell Cameron was going to be the Prime Minister in history books 100 years from now that list him as the active PM when the United Kingdom left the European Union in unprecedented fashion.
Here’s a live-look at every single British politician who campaigned for a “Remain” vote:
POW-SOCK-ZOK: PEOPLE IN MOTHERFUCKING LONDON ARE CALLING FOR A SECESSION FROM THE BLOODY UNITED KINGDOM.
I mean, it’s one thing for for other countries that are part of the United Kingdom to desire a “break-up” with Great Britain…. but Great Britain’s most important city politically/financially wanting to leave the country itself? That’s a freaking triple-whammy, folks.
While it seems absolutely insane that the citizens of the small geographic region of London would want to leave their own country, it runs parralel to the way Londoners voted. As you can see, London and it’s surrounding areas was the only region of Great Britain that voted overwhelmingly to remain in the European Union during the Brexit vote.
So to wrap this thang up, we have:
- Other countries wanting to leave the European Union.
- Prime Ministers and European Union figureheads resigning.
- Inter-country tensions skyrocketing within the United Kingdom.
- Great Britain potentially self-combusting itself via the sentiment of Londoners.