CRIPES... THAT WAS CLOSE!
Harry Richardson is a long-time student of Islam and author of best seller, "the Story Of Mohammed - Islam Unveiled', http://thestoryofmohammed.blogspot.com.au
Could it be that the Brits have just saved Europe from dictatorship for the third time in just over a century? That might sound melodramatic but there is no denying that the EU is no democracy. What’s more, it has been steadily increasing its stranglehold on the nation states under its sway.
Up until now however, the powers in Brussels have not had control of an army. European armies were still under the control of the democratic nation states. This was about to change.
An EU army was being discussed. If you are familiar with the way the EU does things, this means it was about to happen.
It wouldn’t have happened all at once of course, that is not how the scam works. The EU army would have been small at first.
Slowly but surely however, national armies would have been starved of funds and manpower. At the same time, the EU army would have grown and grown. See if you can figure the answer to this simple puzzle: Dictatorship + Army = ?
If you are struggling with the answer to that one, try Googling “World War Two.” You may be in for a bit of a shock.
I bring this up because no-one knows what will happen now. There is every chance that we are in for a bumpy ride.
The world’s monetary system is at breaking point. Somewhere in the region of one third of the world’s government bonds are paying negative interest rates. This is unprecedented in world financial history and it is not a good sign.
ECB president Mario Draghi
Any number of other factors are causing increasing stress and Brexit could be the catalyst to crash the system. The UK will also face a period of readjustment.
There will be winners and losers both in the UK and in continental Europe and when things get ugly, Brexit and its supporters (like me) will cop the blame.
Whatever happens however, I still firmly believe that the alternative would have been infinitely worse. What is more, after a period of adjustment, the UK has a chance to rediscover the secret of success.
This has been proven time and again. It is guaranteed to end poverty, prevent war and reduce inequality. Unfortunately, it doesn’t suit the powers that be and consequently has been buried under an avalanche of propaganda.
In case anyone is listening, I will repeat it here: Small Government, low taxes, sound money and strong property rights. These things may not sound “cool.” Yet these four simple principles will do what Bono and Sir Geldof never could and never will do.
In the meantime, the first losers of Brexit will be the European banks which have sold off heavily already. The reason for this is simple.
Big banks have an awesome two-part business model which is insanely profitable. One part involves printing money and lending it out at interest. The second part involves taking insanely risky bets with enormous sums of money.
Taking huge and risky bets wouldn’t normally be a great way to make profits. The banks however, are in bed with Governments and have a sweet deal going on.
When the bets pay off, the profits go to the bank. When the bets turn bad and the bank gets wiped out, Governments declare them too big to fail and reimburse them with taxpayer funds. Banks say, “thanks very much” and take on ever bigger bets to make even bigger profits.
By 2008, the bets had grown so large, they almost took down the governments with them. Since then, the bets have grown much larger.
If you owned a European bank stuffed full of risky derivatives, who would you want guaranteeing them? Would you want the British Government, or the Governments of Greece, Portugal and Italy?
Not surprisingly then, it has been the banks and their highly paid economic advisers who have been warning of a financial Armageddon in the event of Brexit.
No doubt there will be turmoil and financial destruction aplenty when it finally hits the fan. At the end of the day however, it will be the taxpayers of the EU who will be on the hook for these bank losses, not the long suffering Poms.
Will the EU be OK? Well, they may be losing a bulldog but at least they are gaining a Turkey. We will see how that works out for them.