In the wake of Brexit, financial markets across Europe and the world are experiencing some choppy waters.
Those who opposed the U.K.’s move to regain independence from the EU have been quick to point to the financial turbulence with a not-so-subtle I-told-you-so. Their message is clear: Brexit is responsible for the downturn, and it will only get worse if other nations follow suit.
But is it really the catastrophe the globalists make it out to be? In answering this question, consider that the architects and promoters of European integration promised in the past that the creation of the Common Market and other steps leading to the European Union would usher in an era of jobs and prosperity. But they were wrong.
Now, as other EU member countries consider following the U.K.’s lead, those in favor of maintaining the EU find themselves facing the very real possibity that it could completely unravel. Having failed to keep their promise of unparalleled jobs and prosperity with the formation of the super government, they are now resorting to doomsday fear tactics to hold it together.
Headlines in many mainstream media articles after the passage of Brexit attempt to blame U.K. independence for the market upset while making as much of that upset as possible. Consider the following sampling:
• The New York Times, ‘Brexit’ Hits U.S. Stock Market Harder Than an Election
• The New York Post, Brexit wipes out $420B in the stock market
• The Wall Street Journal, Brexit Rattles Emerging Market Stocks• NBC News, Brexit Backlash Dow Plummets as Markets Reel
Markets — it would appear — respond to fear tactics. In other words, the downturn in the economy is likely a self-fulfilling prophecy. If a bad prediction is screamed loudly enough from enough rooftops, some investors become concerned. That concern leads to those investors backing off until they can see what’s going on. The market reflects that back-off, and — voilà — the prophecy is true.
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