When David Cameron decided to let the British people vote on Brexit, he did not realize that he would open a real can of worms. Before the referendum, I declared that Brexit would not be the reason for a collapse of the world economy but that it could be the catalyst for such a collapse.

We have only seen a few days’ reaction with heavy intervention from central banks around the world but judging by the massive volatility we have seen so far, there is now a very high likelihood that a major secular decline in the world economy will now start to unravel. The next few weeks and months are likely to be a lot worse than the 2007-9 crisis.

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The problems areas will not just be in the economy but also on the world political stage. The elite is not pleased with Cameron that he gave the British people a democratic vote on the question of the country’s EU membership. Political leaders know that it is very dangerous to give the people the option to decide on any important issue. Only the Swiss people have this right and exercise it frequently. In most countries, the elected government take all the important decisions without consulting the people. And in the EU it is even worse than that. Because most of the binding decisions for all member states are taken by unelected and unaccountable officials. And the European Court of Justice stands above all member states’ judicial systems.The British people have with a small majority rejected to have their sovereignty given over to Brussels. They have also made it clear that they don’t want to be forced to accept the EU rules on unlimited and uncontrolled immigration which if continued will destroy the fabric of the U.K. and the rest of Europe.

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The Elite failed to trick the UK to stay in the EU

What is quite astounding is that Cameron and the British government lost the vote in spite of having every economic expert in the world on their side as well as Obama, Lagarde, Carney (governor of the Bank of England) and many others. They also published reports that wages would go down as well as house prices and that taxes would go up. In the end, all this propaganda became counterproductive. The British people just didn’t believe what they heard and they have now called the elite’s bluff. This is why there is panic in many high circles in the world. But the elite is going to use all means to reverse the UK decision. Tony Blair, the ex-UK prime minister, is now proposing himself as the main negotiator for the UK with Brussels. Blair is an Elite member and earns $10s of millions on cozy deals on behalf of the elite, similar to Bill Clinton. There can only be one purpose for his intervention in the Brexit negotiations which if it happened would not bode well for the UK. But I doubt that the conservatives would welcome an ex-labor politician and elite member to act on their behalf.

For the EU officials, this is a serious defeat and a dangerous erosion of their authority to rule Europe as a Superstate. Because now there are already demands for referenda in many European countries like France, Holland, and Denmark. The EU elite will do everything in their Large The New English ... Buy New $12.99 (as of 01:25 UTC - Details) power not to let any of the remaining 27 countries have a democratic vote. But the cat has been let out of the bag and it will be very difficult to stop this drive for freedom from the Brussels shackles to spread.

Problems in the EU is only the first of many problems to hit the world in 2016

The dilemma for Europe and also for the world is that this political unrest is happening in a global economy and a financial system which is on the verge of collapse. Since the beginning of the crisis in 2006, central banks and governments have created around $100 trillion of additional debt, reduced interest rates to zero or negative and manipulated most markets. In spite of that, the very serious problems in the financial system that emerged in 2006 have not been solved. On the contrary, they have grown exponentially with global debt having doubled and derivatives of $1.5 quadrillion being mostly worthless and out of control. The European banking system is on the verge of collapse and this will also spread to the fragile American and Asian banks.

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