Brexit sure has been a firecracker in global dialogue and connectedness. There’s a contagion in the world and it’s playing out in international finance, development and humanity.
It’s pounding on the door asking to be let in, whether we like it or not. And it requires that we respond readily and quickly to change.
The citizens of the United Kingdom demonstrated dogged courage in their decision to vote for Brexit, one that was driven, no doubt, by the impending fear of a ‘migrant’ contagion.
While the fall out hasn’t been pretty for British banks and financial institutions, the direct macroeconomic impact of Brexit isn’t cataclysmic. It’s just disruptive. And our contemporary world is conversational, if not fluent, in ‘disruptive’.
The European Union can certainly withstand the departure of one of its member states without falling apart. It will remain a band of brothers for the nations of Europe that choose it. Longer term, the microeconomic impact of Brexit will be much more important than the macro.
U.K.’s withdrawal from the E.U. will take about two years from the time that they formally invoke the treaty provision to resign. It is expected that the U.K. will invoke Article 50 only upon the appointment of a new Prime Minister – something that will likely occur by October.
The world will go on. The U.K. will continue to exist as an important sovereign nation in the world. And ‘Big Brexit’ will go down in history books as the siren song of a new world order.
© 2016 DaWall Street.