Currency Hegemony, GDP Growth, And Why Brexit Was Good For The UK

Currency Hegemony was in the works for the UK and all nations committed to a single Eurozone. This hegemony would be applied soon after 2020 according to a report from the Telegraph. Those who make the mistake of arguing that this sort of strong arm requirement would not be imposed upon the UK, as a reason to stay in the EU, are possibly undermining the future stability of the UK as a nation.

Certainly, members of the EU have ducked the Eurozone and the Euro currency up til now. But according to the report, that would change. The Single European State is slated to come into existence. Can you imagine reports of plots to block the BREXIT coming out in the light of only a few years before a currency will be enforced upon the Brits with the pound being made extinct?

Eventually, this issue will rise to the top since it is the top issue. It is a top issue because of the need for Brits to eventually 1. abandon the pound, and 2. be required to disarm their nuclear deterrent force. It will start out as a Syncronized Armed Forces Europe but will eventually be expected to operate as the USA operates. It is one thing to merge soldiers, quite another to merge and give up sovereignty regarding one's nuclear deterrent. Ask the state of California how much sovereignty it has over the US nuclear arsenal! Unelected technocrats in the EU (Eurocrats) would eventually take over the arsenals in establishing the Single European State.

So, just as US citizens would never allow the dollar to replaced, or  trust an unknown unelected central government with the nuclear stockpile, I believe that the UK will never allow the pound to be replaced. Had they put the BREXIT vote off, this backlash would have been certain to occur. 

I don't hold out much hope for a Single European State and looking at the Peggers and the Floaters with Lars Christensen explains why.

As the link indicates, those nations that pegged their currencies to the Euro have not grown much. GDP has languished. But those who float against the Euro have had real GDP growth. As for GDP, the floaters have grown 5 times faster than the peggers. A central bank policy that attempts to fix all the nations with one policy has failed. The UK wants its GDP to grow, so it makes no sense to adopt the Euro.

Leave the UK alone, in other words. We have financial shocks from time to time, like the credit and asset crisis of 2008. In times of shock, having one's own currency is essential to real and quicker, recovery.

Disclosure: I am not an investment counselor nor am I an attorney so my views are not to be considered investment advice.

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.