Let the people go!

Leaving the EU appears to be the preference of the citizens of Great Britain and Northern Ireland. The result of the referendum in the UK took the world by surprise. The chance the UK will quit the EU has not been considered seriously by Brussels authorities until the Friday morning brought up the news.  

One week before a Parliament Member Jo Cox has been killed by local man, who claimed himself to be “very English” and defending the country from European infection of openness and tolerance. Jo Cox was well known thanks to her humanitarian activity and sympathy to all civil victims of wars in the modern world. Actually, her appeals to the Parliament to support the Syrian refugees cost the MP Cox her life. The murder shocked the country and convinced a lot of Britainers to strengthen connections with the EU instead of leaving it. Brexit became associated with National ideology and a “Britain first” slogan, at least for liberal intellectuals. So leaving the EU was counted as economic purblindness and a reflection of the mood of retrogrades and nationalists. The campaign supporting the membership in the EU provided the people with economic indexes and a damage of Brexit measured in numbers.

However, Brexit is not all about arrogance and poor judgment. To be honest, “Brentrance” in the UE has happened without the enthusiasm and applause. Thus Brexit shows frustrations because of awareness of a wrong step. Leaving the EU the citizens of the UK pretend to demonstrate objection against the new policy of the Brussels, to react to the refugees crises and economic regulation in Eurozone with its quantitative easing. The society was split and the results of the referendum explicit the misunderstanding among generations, communities and social groups. 52% vs 48% - it is not about any preference, it is about the problem without a solution. A petition for the new referendum is on the way.

The globe reacts with fear and incomprehension. The markets were monitoring the GBP, traders looked for the very moment to take advantage of the news. GBP fell down sharply against the USD, sweep away the EUR. British currency lost 8.3%, the single currency – 2.3%. However, investors preferred the good old money of the Kingdom, they do not believe in the new single currency of the EU, so the EUR lost 3.17% against the GBP. Who wins the game? The USD and CHF! Swiss franc gained 8,16% against the GBP from the late Thursday evening till the end of the week. We search a safe haven and safe assets when the time is out of joint. Swiss banks are so secure and reliable, as a Swiss watch, and so attractive, as Swiss chocolate. By the way, HSBC and others downgraded the pound: the New Year 2017 the GBP will step at the level  $1.20 and €0.92.  

The stocks were drowned all over the world: FTSE slipped out 3.5%, RBS and Barclays – almost 18%; DAX 30 lost 6.82%, Nikkei – 7.92%. Tokyo concerned about cars and “smart gadgets” to be sold in the UK. Germany is trying on the role of Bolivar, who should carry the EU right now without Great Britain. However, the markets survive ups and downs, investors make a fortune on the volatility. The UK is still a member of the EU and will be for years, until bureaucrats in Brussels will manage to find the road through the laws and rules. The openness, tolerance and humanity, fraternite+egalite+liberte exist and flourish not in the EU only. Let the people make their choice! Let them go, if they need. The world will never be the same, but it will be.