Fucking Learn Stuff : Brexit

Fucking Learn Stuff is a weekly column that covers various topics. It is our attempt to keep everyone informed. We attempt to simplify and break down some of these “things” that everyone talks about in an easy to consume way, or in other words... to do our part in helping you Fucking Learn Stuff.

Right now the word 'Brexit' keeps coming up a lot in the media, people at bars thinking that their opinions matter and even on Donald Trump's twitter feed, which we all know turned out well for him. 

We have already seen its effect on the Forex markets, but will this keep going to effect the global economy further? 

Here's a low down on with this whole Brexit stuff is all about. 

WHAT THE FUCK IS 'BREXIT'?

Essentially, it's just a mash-up of the words 'Britain' and 'Exit'. The nickname given to the occurring process that is trying to decide whether the UK should exit the European Union. (Or the EU, which is a 28 member state that is located primarily in Europe) 

WHAT THE FUCK DOES SUPPORTING THE BREXIT MEAN?

Pro-Brexiters advocate that leaving the EU is necessary to protect & restore the UK's identity, culture, independence, and place in the world. This argument is often expressed by the opposition to immigration. 

The main case for leaving revolves around control of their economic policies. Many but hopefully not all believe in these 'Euromyths' that are theories about parts of the British culture being under attack. Like the idea that Double-Decker buses being banned - for the record... not true. These are societal scare tactics and rumors generated to create further resistance to change. We see this in the USA all of the time. A huge part of this 'cultural nostalgia' if you will, is the thought that Britain is an iconic epicenter of innovation and influence and that this individuality is being washed away by all of the global noise. Thus creating a level of animosity toward immigrants that are coming to the country in seek of refuge. 

WHAT THE FUCK DO REMAINING SUPPORTERS THINK?

"Remain" supporters argue that staying in the union is more beneficial for the British economy than leaving and that the concerns about migration and cultural issues are not important enough to outweigh consequences of leaving the EU.

The most surprising about this "Remain" campaign is that, the it does not supply an argument against leaving. No defense of the EU, no discussion about immigration being good or bad for Britain, but instead solely builds a foundation about how it would be devastating to the British economy.  

Most of the world's global economists agree with this claim of the "Brexit" being a devastation for the economy. London has built itself into a global financial center with high paying jobs that will not be there any more after upon "Bexiting" the EU.

The pound is already at its lowest valuation it has been at in over 7 years. A "Brexit" will demolish any infrastructure supporting the logic of Britain as a global leader. 

WHY ARE BRITONS NERVOUS ABOUT EUROPE?

Well actually, Britain has kept Europe at arms length since before joining in 1973. As you probably know they never switched to the Euro as with other countries in the EU in order to be self-sustained. 

SO, WHY THE FUCK NOW?

Mostly to do with the eurozone crisis, which we can not cover in full here, but basically it is the economic debt crisis that has been going on since 2009. Something that was inadvertently caused by 2008 economic crash over here in the States.

WHAT THE FUCK HAPPENS IF BRITAIN LEAVES?

There are many different projections that have significant differences but almost all agree that Britain will suffer financially, at least in the short term. Without access to the EU's open markets, Britain will most likely lose trade and investment influence. The first minister of Scotland, Nicola Sturgeon, has said that if Britain votes to leave she will hold a new referendum in which Scots can vote to exit Britain to rejoin the union as an independent nation. 

RECAP

Basically, some Brits want out because they are too afraid to share their country with immigrants trying to better their lives and in doing so possibly giving up some of their cultural history. These Brits would rather have global ramifications on their country instead of reforming migration policy. The larger impact could be global and, for us Americans, this could be a good thing as it was stated the Brexit could be a reason to not raise interest rates. Regardless, it is a concern for the whole EU as Britain is about one-sixth of the European economy. Image if on a federal level the US just cut off ties to California and Florida... That would create huge deficits for both parties when married together as they are. Same concept with this Brexit. It decreases Europe's overall strength, especially with Germany already having so much power. We also have to think about power moves Russia might make and with new alliances. Remember the saying 'Divided we will fall'? Maybe the better way to put it is, in smaller divisions Europe and Britain become weaker and vulnerable to infiltration on a much larger scale