Hey there guys, it's Noob-Kun here. This week Fox has been busy researching on the next topic and it will take a while for him to finish it, thus I'll cover for him this week, with this short article on Brexit. Hope you like it.
The British people have made a choice, that not only needs to be respected but those on the losing side of the argument- myself included- should help make it work.
Friends, Aliens and Countrymen, lend me your time, as I have come not to bore you; But to inform you of this hot piece of development.This is the time to discuss a move that won’t come again in the next few years, possibly the whole decade, The Brexit.
But before I start, I must inform the populace about the terms and conditions of Brexit.
Firstly, we’ll start of with a simple question, What is this ‘Brexit’ ?
It is a word that has become used as a shorthand way of saying the UK leaving the EU – merging the words Britain and exit to get Brexit.1
hmm, EU? sounds familiar… Yup, EU , short for European Union, is a political, trade and economic union founded in 1957. It includes 28 Nations (Out of 51 in Europe) , of which 19 use Euro as their currency (Part of the Euro Area). This implies, that about half of the nations in Europe, aren’t part of this.
To join the EU, a country has to first apply for a position, then sign various contract and policies, accept them in their nation, pay certain ‘fee’ for the European requirements every month and a bunch more obligations. Not only that, you even have to accept policies of easy migration and trade.2
Fun Fact: It is one of the largest bodies to ever receive a Nobel Prize. It obtained a Nobel Peace Prize in 2012 for it rapid development, peaceful trade and other such policies.
Supposedly, considering all the benefits being so good, why would a nation want to quit it? Trade unions could help maintain peace and increase economic growth in the long run, so they definitely are quite useful things. Why would Britain want to leave?
Though trade unions are generally beneficial, not in this case. Britain wished to leave EU for a variety of reasons, some being :
- Due to EU, Britain had to take in loads of immigrants, which was becoming a problem in enforcing their welfare schemes for their people. It could also result in causing internal strife or a civil was in Britain if that continued.
- It’s economic and trade policies weren’t of much help, and they also lost a lot of freedom to do their own business freely and safely. Major part of their economy, the fishing waters, were almost being directly controlled by the union.
- Due to the EU judges being a part of everything in their society, they were afraid that EU will eventually make her, their puppets. Without any form of freedom of trade and relations, they were feeling oppressed.
Additionally, most of the old and wise mob were always quite vigilant of EU actions and disapproved of it, since the last referendum of choice in 1975. However, that time, the people voted to stay ( 67% ), yet now, on 23 June 2015, when the referendum was held again, the people voted to leave ( 52% ). Though it wasn’t a clear majority, a majority is still a majority.
While, ex-Prime Minister David Cameron, didn’t wish this to happen, as he was supporting the stay group; he knew that since he was on the losing side many people will definitely take advantage of it and therefore decided to resign.
His resignation speech is just so heart wrecking, you can watch though the link below.
Right after his resignation, Theresa May became the New Prime Minister, the prime minister of a ‘independent’ Britain.
While, I don’t clearly know the politics behind such actions and the various main figures who participated in this, I know that Nigel Farage, leader of UK Independence Party, Founder of the Leave Campaign, had one of the biggest hands in Brexit.
So, is this the end? Britain can finally decide it’s own destiny now? Not yet…
While Britain has certainly started backing out of the EU, by dictates of the laws and policies, they’ll first have to invoke Article 50, and then wait for about 2 years, before UK is finally ‘free’.
A negotiation with the European Union will need to begin under a new Prime Minister, and I think it is right that this new Prime Minister takes the decision about when to trigger Article 50 and start the formal and legal process of leaving the EU.— David Cameron, “EU referendum outcome: PM statement, 24 June 2016”. gov.uk. Retrieved 25 June 2016.
There is no roadmap to follow or analogy to invoke as a guide or pattern for how the Brexit vote will reverberate in the months and years to come. However, a few immediate consequences seem highly likely:
- The flight to safety away from the epicenter of this British-EU divorce will push capital away from the region and toward key safe-haven markets including the U.S.—especially Treasuries—and to Japan. This will further lower market interest rates and raise relative currency values .
- A higher U.S. dollar and Japanese yen are negative to both economies’ export sectors. In the case of Japan, this is particularly unhelpful to its efforts to re-inflate and reinvigorate the economy after decades of deflation.
- The higher U.S. dollar also triggers additional pressure on China to float the yuan lower, as it is caught in the divergence between its two largest export markets—the EU and the U.S