Brexit Makes Sense
A lot happened in 2008; Brittany Spears was allegedly admitted into a psychiatric ward, New Hampshire same-sex marriage laws came into effect and one of the worst economic crises the world has seen post-Y2K. In the US, the housing bubble burst due to mortgage-backed securities plunging because they were given inflationary “AAA” statues along with a myriad of other reasons. People couldn’t make their payments, the housing sector crashed along with the banks, most notably the Lehman Brothers. What did the Fed do? Well for starters they dove hard into quantitative easing measures, printing off loads of money and trying to stimulate something. Anything. What did they do with the money? They gave it to the banks. The people of North America were shocked. The world was shocked.
How could the US government [read: for the people, by the people] fail to criminally punish any of the big banks for their unbelievable demonstration of impunity as they brashly speculated unrealistic market prices, gambled illegally with the vulnerable credit of the middle class and illegally rated mortgages just so they could sell your debt? How could the Fed then go and give the banks money to bail them out? Well, to you and I it seems stupid, irrational, unfair, dumbfounding and unprecedented. Well that is where we are wrong. Must you always forget who runs the world and what fuels the world? Of course it makes sense to give money to the banks so they can be bailed out. We live in a world where money is the means, economics are the mode and capital accumulation is the end.
Everything else is just a “market influence”.
Brexit makes sense.
In terms of racism, xenophobia, ultranationalism and the corruption of an entire continent, yes, Brexit is fatal. But the people who make these decisions are not looking at it that way. They are looking at economics and economics only. They pander to the middle class with narratives of money sovereignty bringing riches to everyone, high tariffs for all in need of British goods and of course the classic “world leader” narrative. I understand that Brexit was a referendum and was voted on. But have you seen the demographic break down of the vote? More than 65% of people who voted in favour of Brexit were 65+ with only a marginal 15–20% of young people voting to leave.
From an economic perspective, it actually makes sense for Britain to leave the EU [read: the euro]. The euro is what scares Britain. The euro has been a disaster since the beginning and its failure is inevitable. If Britain were to remain in the EU, it would only prolong the death of the euro for another couple of years at most. However, it doesn’t take an economist to understand that this is going to severely impact both the Eurozone counties and the British sterling pound in unprecedented and negative ways. But this isn’t the end, this is the beginning. With the collapse of the Eurozone, major economies like France and Italy will have the wherewithal to absorb the impact of leaving the euro currency as well and adopting their own. This process will only balance out the strength of new currencies with the old. It’s a zero-sum initiative. As more countries leave, the sterling pound will only gain strength. Oh, and “market influences” will help that that too. I would imagine that Britain will be heavily engaged in a new major war within the next 2–5 years. This is the only economically logical way to stimulate a weak economy held back by a weak currency.
Who teaches this lesson better than the US?
The problem with it all begins with me saying: “from an economic perspective it actually makes sense”. Isn’t it a fucking shame that economic perspectives are the unquestioned hegemony? The dominant commandment? The only way to salvation? Isn’t it a fucking shame that all the horrible things that will happen to Europe will be quantified as nothing more than market influences?
Don’t forget who runs the world. Don’t forget their interests, their biases and how they benefit from things.
People are burning humanity in the streets of Tower Hamlets, torching inclusivity and community in riots fueled by ultra-nationalist racism and blame-game politics. Schengen is being raped by rhetorical narratives of dangerous new-comers. White people are crawling through the streets of Manchester hailing historic symbols of fear, weakness and hatred for the Other. “Britain First!” can be heard echoing in front of the homes of parliamentarians as they get stabbed and shot by their constituents who fear their allegiances lay outside of Britain. The most powerful seat in all of Europe, the Prime Ministers seat, lay cold and vacant for anyone who promises salvation; for anyone who promises to find those responsible for Britain’s troubles and punish them mercilessly. Our breath is held as we watch history unfold in full 1080p HD, haunting similar to the black and white world we remember during the 1930s in Europe.
But hey, at least the sterling pound is strong and under no other influence but the Brits, right?
That is the problem with referenda such as these. Complicated economic issues cannot be decided by people who have absolutely no significant working knowledge of economics. Otherwise, the answers seem easy and obvious and are often riddled with xenophobia and a hatred for all beings that do not look like you. Economics are fucking hard. Human beings aren’t designed to be able to accurately understand how 7.4 billion of us are going to interact in a market. It is never as simple as walking away like you would in an argument with your sibling. This is a zero sum world. For every action, there is and equal and opposite reaction.
This is going to be a fucking disaster, all because it made economic sense to leave the Eurozone.