BREXIT is Only “Advisory” & Cameron Can Still Ignore the People

BREXIT On Schedule

QUESTION: Mr. Armstrong; If BREXIT wins here since everyone I speak to seems to want to vote out rather than stay in, what would really happen?

ANSWER: Assuming the politicians actually honor the vote, which is a very big IF, you are looking at, at least a two-year process. But it is important to understand that this vote is only “advisory” and is by no way binding on Cameron. Even if a miracle took place and the British people voted to save their country from foreign suppression, Cameron would stall and the process would take years to happen. Then, government can simply take the vote as “advisory” and refuse to implement the will of the people. This is the pitch behind the curtain to Brussels.

The reason you still have the pound is because it had to leave the ERM back in 1992, and then Spain and Italy were also forced to follow. This incident proved that fixed rates or pegs never work, just as we saw with the Swiss. The idea of fixed rates failed, and there is the underlying simple fact that creating one currency and one national policy means that some nations will suffer as others prosper.

When the Federal Reserve was first established, each branch was autonomous and set its own interest rates to manage internal capital flows. Roosevelt usurped the Fed by bringing it under political control in 1935, thereby removing the design and creating a single national rate. This design was imposed for World War II, but it does not promote economic stability. Farmers suffer because the Fed will raise rates to stop speculation in New York. The system is actually unstable. This is what Europe copies and why the ECB will fail. We saw Southern Europe suppressed into a depression with youth unemployment over 60%, but the ECB is worried about banks and bondholders.

Cameron will delay, stall, and most likely deny the vote if BREXIT actually won.

Latest Posts

When Religion Attacks Itself

Religion has always influenced economics and geopolitical events. For nearly two hundred years, the emperors of the Eastern Roman Empire, known as Byzantium, had followed the traditions of just placing [...]
Read more

Who was Francis Scott Key?

With the bridge debacle, the name Francis Scott Key has been a topic of controversy. Francis Scott Key was an American poet, author, and lawyer from Frederick, Maryland. He witnessed [...]
Read more

Good Friday & It’s History

One of my more interesting trips was to Jerusalem for Easter one year. You walk the streets of this ancient city, and they have marked the Stations of the Cross [...]
Read more

Market Talk – March 28, 2024

ASIA:   The major Asian stock markets had a mixed day today: NIKKEI 225 decreased 594.66 points or -1.46% to 40,168.07 Shanghai increased 17.52 points or 0.59% to 3,010.66 Hang [...]
Read more