The mainstream British media forecast that the secession of Great Britain from the European Union will bring doom and gloom to world markets. In the US, some analysts believe that we have already been in a recession for the last 4-5 months. However, more recently some signs of optimism are stirring that not only has a recession been averted, but for Britain, the Brexit will not be the harbinger of the economic Apocalypse.
Positive financial indicators may include:
- The JP Morgan Global Manufacturing Purchasing Managers’ Index (PMI) has risen to the highest levels since 2011.
- Global stock markets have soared to historically high levels.
- British independent Office for Budget Responsibility has raised economic growth forecasts for 2017: the British economy is now expected to grow at a rate of 2% rather than 1.4% as originally thought.
- British manufacturing output has increased to a 7 year high.
- The British trade deficit has narrowed £4.7billion to £6.4billion over the past three months.
The pessimists still predict a recession to take hold later this year. They claim the downturn has only been “postponed” by the destabilizing effect of Donald Trump, and that this “surge” will dissipate by fall. However, just last week, a Gallup poll showed that small business owners are the most optimistic they have been since July, 2007. This must be good news. In the midst of a world financial system driven by imaginary money with no firm basis in actual capital, perception is at least as important as reality.
In the end, whether the markets soar or crash, Texans are witness to a move away from globalism and a resurgence of national identity. Those who pine for a free and independent Texas can study the success of Brexit as well as the consequences of partial-reserve monetary systems and entangling alliances around the world. When Texas takes its place among the nations, we have the opportunity to set an example as a country that serves its people by adhering to a sound financial policy and a currency that is actually worth something.