Is Ron Paul Right about Brexit? Is The End Coming? No!

Is Ron Paul Right about Brexit? Is The End Coming? No!

Mark Skousen | Jul 04, 2016

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I recently was asked to comment on former Congressman Ron Paul’s prediction that Brexit — the British voting to leave the European Union (EU) — is the last domino to bring about the collapse in the monetary system as we know it.

The query came during my appearance on KitcoTV, Wednesday, June 29, in New York. Click this link to listen to my five-minute response about why I am not in the gloom-and-doom camp.

Is Brexit really a global storm or just a tempest in a teapot? Is the great experiment of the European Union becoming the United States of Europe coming unglued?

Economically, the EU was a modern formula for success — imitating the United States of America by permitting the free flow of money, capital, goods and labor throughout the continent of Europe. But free markets are also disruptive, causing winners and losers. It also means foreigners (such as EU bureaucrats in Brussels, Belgium), impose rules and regulations that people don’t like, especially by letting poor immigrants or even terrorists seeking to infiltrate Europe to enter countries such as the United Kingdom. Last but not least, it means a clash of cultures between the French, German and English, and now the Middle East.

The biggest problem is that the United Kingdom had no Plan B once its citizens voted to leave the EU in two years. Now that the British have voted narrowly to leave the EU, what policies should the United Kingdom pursue? Neither the U.K. Conservative nor Labour parties have offered an answer. Not surprisingly, David Cameron, United Kingdom’s prime minister, announced his resignation. Will the British adopt a liberalized pro-market economic policy, or will they get trapped into a protectionist mode?

Worse, what will the other EU countries do? Will they leave, too? Now almost every country is being energized to go it alone.

Financial Fallout: What Should You Do?

What to do? First of all, don’t panic. Fortunately, my Forecasts & Strategiesinvestment newsletter offers a well-diversified portfolio that includes gold for the first time in five years, and a defensive position, which features my favorite oil and gas holding, is doing a good job of protecting the wealth of my subscribers.

The recommended portfolio is holding up well — most of the stocks and funds are down, but not as much as the market, and now are making a recovery. In fact, the portfolio is beating the market. It pays to stay invested and not panic, so click here to learn more about my newsletter and one of my favorite recommendations.

Special Emergency Meeting at FreedomFest on Brexit Fallout!

Second, we are holding an emergency meeting at this year’s FreedomFest on how to protect and grow your investment portfolio and business in response to the global uncertainty caused by Brexit.

I urge you to join our three-day FreedomFest investment conference and global financial summit in Las Vegas, July 13-16. We also will be joined by Sen. Rand Paul (Kentucky) and Sen. Ben Sasse (Nebraska), as well as by three congressmen to talk about what’s going on in Washington and the critical 2016 elections.

On June 24, I received an email from Rob Arnott, the principal advisor to PIMCO, and he shared my deep concerns about the importance of Brexit on the global economy and markets. “We will adjust, but it may take five years to adjust to the disarray!”

Arnott is one of the smartest investors in the world and will be joining us at this year’s FreedomFest on July 15, in a special emergency session with on “Global Turmoil, the U.S. Elections and the Markets” with Steve Forbes, moderated by John Mauldin, publisher of the Mauldin Economics. To register, click here.

Is Ron Paul Right about Brexit? Is The End Coming? No!