by David Haggith, The Great Recession Blog:
At long last the tyranny of the global financial elite has been slammed good and hard…. The British people have rejected the arrogant rule of the EU superstate and the tyranny of its unelected courts, commissions and bureaucratic overlords…. Smaller government—–at least in geography—–is being given another chance. And that’s a very good thing because more localized democracy everywhere and always is inimical to the rule of centralized financial elites. (David Stockman — Contra Corner)
Stockman’s lucid thoughts reverberate like an echo in current time to something that I wrote back in February:
Britain is now debating leaving the European Union, making Brexit as big of a deal as Grexit. With the growing flood of immigrants through Europe, working its way to Britain, the British exit is gaining support. More economic disintegration within the Eurozone will certainly strengthen the case for a little more separation from the European Union…. So, Europe is its own volcano, ready to break apart on all sides…. A worldwide eruption, which I call the Epocalypse, will shatter the landscape — is already shattering the landscape…. You might not like the prediction (I know I don’t), but it doesn’t matter if you like it (any more than it matters if I like it). I’m not looking to see what I want to see; I’m looking to see what is, and reality doesn’t care what I like. It doesn’t ask me what it should be. Those with eyes wide open will see the fissures that are opening up everywhere, and that will give them the outline of things to come. So, you can see what is coming…. it is those fissures that the Epocalypse will burst open. Humanity will be forced to face its flaws. (“Hell Week for the Global Economy“)
The biggest single rip in the European fabric that could happen has happened, forcing all of Europe to face its flaws. As I’ve said all along, Europe’s leaders, like Merkel, were blind to the stresses they were creating with their immigration policies and central planning. I have maintained that, because of their blindness, those stresses would continue to build until the volcano blew and have said this would be the year of the great rupture.
You have two major factors in Europe’s eruption — the building pressure and all the fractures that made it too weak to contain additional pressure. The pressure most pointed to was immigration. The fractures were its economics, broken by design and overstressed by previous failures. The blindness that seems inevitable with large centrist political structures also played a major role. Some event like Brexit could easily be seen coming — if not the exact event itself — but its leaders failed to see this and so continued to push self-anhilating policies like a council of masochists. Merkel, who seams to wield almost autocratic authority over the EU even though she is not its president, might as well have been hammering her own head with the gavel.
When you see the sides of the volcano bulging and cracking, you know its eruption is imminent. That was a big reason my own economic predictions placed a worldwide economic apocalypse — the Epocalypse — as happening this year. The explosion in Europe — apparently unexpected by many who are now scrambling to recover from a market that priced in a British “remain” vote — seemed inevitable. The fact that it was Brexit first and not Grexit means the eruption is more like the Yellowstone super volcano than Mount St. Helens. One of the biggest pieces of the EU broke off, not one of the smallest.
Mohamed El-Erian, former co-CEO of PIMCO, described the fractured blow-up this way:
Socio-political disconnects are everywhere: The “leave” decision is about much more than a narrow majority of citizens refusing to follow their political leaders. It should be seen as a notable rejection of the political and business elites, as well as “expert opinion.” And it also illustrates the regional divides that prevail following a period of low growth, especially growth that has benefited some groups more than others…. The Brexit referendum decision ended up boiling down to a gross oversimplification — one that pitted economic wellbeing versus regaining sovereignty over immigration…. The “leave” vote is likely to embolden the anti-establishment movements that have already been gaining traction in much of Europe. (Newsmax)
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