World economic markets were very volatile on Friday June 24, 2016. Our US markets marked losses on all fronts – Dow was down 610 points (3.39%), NASDAQ was down 202 points (4.12%) and the S&P was down 76 points (3.59%). This negative volatility was a part of the global response to a June 23, 2016 vote by and for the United Kingdom to leave the European Union. This is also known as the Brexit (British Exit) referendum.
The referendum or public vote was open to the people of the UK and the question posed to them was “Should the United Kingdom remain a member of the European Union or leave the European Union?” Think of this as residents of any of our 50 states being asked should we stay or should we leave the United States. In simple terms, that was the question.
The result was 51.9% of voters opted to leave the European Union and 48.1% opposing the change. The UK, also known as Britain is leaving the 28 state European Union.
Three notable changes that will take place as a result of the Britain leaving the European Union:
- Britain will no longer be a state in the union. All dealings with the remaining EU states will be with foreign partners. Many European trade agreements will have to be renegotiated and modified.
- Travel between Britain and other states within the European Union will not be as open as they have been before. Again, Britain and neighboring countries are no longer a part of the same union. No more changing residences among the European states and Britain without additional regulatory steps being required.
- These items and the many others that will take place will increase the overall cost of doing business in Europe both nationally and internationally.
A key reason that this referendum was on the table for voting was that the people of Britain had a general dissatisfaction with the European
Union. They felt that breaking away from the union was the only way to protect and restore the country’s identity, independence, culture and pride. From my readings I’m interpreting that the people of Britain felt that receiving immigrants from other cultures in large numbers contributed to their feelings of losing their identity.
British citizens that opposed the EU exit stated that there would be substantial economic consequences associated with leaving the union and noted that the financial impact of the exit does not justify taking such an action.
The vote for Britain to exit the European Union was passed on Thursday June 23, 2016 and as predicted, there was a notable downturn in the US, European and Asian financial markets on Friday June 24, 2016.
The Brexit vote marks the beginning of a new stage production on this topic. Since the vote we’ve seen celebrations, resignations, negotiations and immigrations. Unfortunately, there’s also been a murder of a political leader as a part of the madness. Much unrest on European soil as a result of this historic vote.
I’m praying for God’s will to be done on earth. I’m seeking the Lord for peace in the land and I’m praying that he will educate us with insight on the topic. I’m believing that he will show us how to prosper in these financial markets in ways like no one else. I’m giving Him the glory already on this!
Did this help to clear up any questions that you had on this topic? Let me know. I would love to hear from you!