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Brexit and the Market Plunge

International stock markets took a huge plunge after the Brexit Vote.

Pundits frame this plunge as proof that the Brexit vote was a bad decision.

I look at the plunge and see further proof that the top heavy financial system created by centralized banks is inherently unstable.

The Brexit plunge was not the first wild market swing in the history of financial markets. Economic history shows that these wild market drops are common and seem to be increasing as the forces of economic centralization take hold.

Each time there is a huge plunge, pundits try to identify an event that caused the crash, as if presenting the event could have prevented the crash.

What we should do is look at the way that the markets are structured. The markets crashed after the Brexit vote because the centralized markets in the EU and US are structured in a way that make them prone to crashing.

Our bureaucrats respond to crashes by piling financial regulations on top financial regulations. These financial regulations tend to enrich the centralized bankers that write the regulations, but they have never achieved their stated goal of providing financial stability.

The Brexit market crash has, so far, been relatively minor. I fear that people in the West, at large, have been facing harsh economic times. The crash of the centralized markets may get worse.

The fact that the Brexit vote won shows that people are starting to question policies that favor economic centralization and wealth concentration to those policies that favor economic distribution.

(PS, the EU was actually being built on the ideals of international socialism. Socialism concentrates economic power in the central authorities. Socialism is not the answer to economic centralization. Socialism makes economic centralization absolute.)

Authored By y-intercept blog

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