Brexit- Global Market Crash Pending

What is Brexit, how does Brexit affect you and will Brexit cause a market crash? Patrick Bet-David tells you everything you need to know about Brexit in this episode. Subscribe to Valuetainment for new uploads: http://bit.ly/2aPEwD4

About Valuetainment: Founded in 2012 by Patrick Bet-David, our goal is to impact entrepreneurs around the world through value and entertainment. We are the #1 channel for entrepreneurs because of the best interviews, best how to videos, because we defend capitalism and educate entrepreneurs.

Brexit – Global Market Crash Pending

2 of the most important cities worldwide that are linked to economic and financial markets. One of the cities is New York city and the other one is London. You might know New York as the financial capital of the world, however, it only recently got this title a few years ago, and the city is only right over 120 years old. The other city is London, the city that is the financial capital in Europe and it is the number two city, only behind New York as the second most important city in the world with regards to finance and economics. London was the financial capital of the world since the middle ages and the city has been around for over 2000 years. London is the home to a few hundred headquarters that originate in other countries. Therefore, Brexit is important and why we will be looking at Brexit in this article.

What is Brexit?

Brexit is Britain’s exit of the EU, very simple.

What is EU?

The EU is the European Union

Purpose of starting EU?

The first reason they started the EU was because they wanted to maintain peace after there had been two bloody wars in a row. Most likely they feared there would be another one and realized that if they became close they would decrease the likelihood of war, just look at the death count from the war

WW1 1914 – 1918 17 million casualties +/-
WW2 1939 – 1945 70 million casualties +/-
WW3??

Second reason was economical, if all the European nations started working together collectively, they would have much lower likelihood of going to war as it would cost them economically. Robert Schuman, the prime minister of France and he proposed the idea of EU. He wanted to make war not only unthinkable but materially impossible, another goal was to neutralize the competition for natural goods among the member states.

Here is the timeline of how EU got started:

1951 – European Coal & Steel community (ECSC) established by Treaty of Paris signed by Belgium, France, Italy, Luxembourg, Netherlands & West Germany
1957 – Treaty of Rome – Single Market
1993 – EU

Who is in the EU today?

Austria, Belgium, Bulgaria, Croatia, Cyprus, Denmark, Estonia, Czech Republic, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, UK

Did they vote for Brexit?

There was a referendum held in the UK where everyone got a chance to vote if they wanted to leave or stay apart of the EU. 51.9% voted to leave the EU where as 48.1% wanted to stay. The majority in Northern Ireland, Scotland and Wales wanted to stay, where as the majority in England wanted to leave. There was also a clear divide between the older who wanted to leave and the younger who wanted to stay.

Here is a list of the benefits of staying in the EU

They will keep the freedom to live, travel, work & retire anywhere in the EU
No need for passports when traveling
The UK sustains millions of jobs that are predicated on them being apart of the EU
- 1 million jobs linked to UK export to EU
Many EU company headquarters reside in London which may have to leave
Less likely to get ripped off.
- Laws in EU companies ensure transparency from sellers & the quality of the products
Collectively, EU has the 3^rd largest military in the world.

Here are the benefits of leaving EU

They can create their own economy with US/China without needing EU’s approval due to trade agreements and laws the European Union have
They can control their own immigration – This allows them to choose the member of immigrants you accept vs being forced by the EU
They will be able to create their own identity
They will be saving the £350 million a week they send to the EU

“No if’s, no but’s. We are leaving the EU on October 31^st” is something the British Prime Minister Boris Johnson has been quoted saying.

Here are some of my final thoughts.

When fear is high, we play safe.

The fact that the EU was created after 2 world war’s makes sense. When people are scared, they tend to play it safe.

Robert Schuman’s goal was to neutralize competition.

In some ways he can be referred to as the French FDR that put in works a lot of initiatives after the Great Depression.

No competition = no new innovative companies

The only problem with neutralizing competition is you end up creating less competition. Think about it, when is the last time a big billion-dollar company came out of Europe?

EU by law forces employers to give employees 5 weeks’ time off pair per year.

Imagine how much this slows down their economy, these five weeks don’t include the holidays that means they have another 2 weeks extra. Multiply this by each person and you end up getting a economy that loses considerable momentum when things slow down for those weeks each year.

Top contributors to the EU

Here are the contributors in the EU, when the UK leaves the other countries will be forced pay a higher percentage of the bill. When Brexit happens, it will cost Germany: 4 billion, France 3 billion & Italy 2.5 billion Euros a year. Here are what percentage the countries are currently paying:

Germany 21.11%
France 16.4%
Italy 13.64%
UK 13.05%

Brexit could be another cause for a market crash

Brexit could potentially be another thing that makes the market crash.

There are a lot of things that are cooking in the economy right now, it might make it better and it might make things crack. There are going to be some major shake ups sooner rather than later. Some people are going to lose and others are going to win big time. It is all about how you position yourself.

To reach the Valuetainment team you can email: info@valuetainment.com

Follow Patrick on social media:

Website: https://www.patrickbetdavid.com

Facebook:https://www.facebook.com/PatrickBetDavid.Valuetainment/

Instagram:https://www.instagram.com/patrickbetdavid/

Twitter:https://twitter.com/patrickbetdavid

Linkedin:https://www.linkedin.com/in/patrick-bet-david-3731553