There’s been an amazing amount of noise over the United Kingdom’s referendum to leave the EU. We saw a huge drop in the global markets most of which were overvalued to begin with. The source of all that noise was primarily pundits who wanted to throw up enough smoke to allow them to make an undetected shift in positions regarding BREXIT. Remember that the key to being a pundit is to create the illusion that you can predict accurately. So this week’s shoot-the-shit presents our ideas on BREXIT; however, to do that we need to talk in broad terms about the EU concept. To make that easier we created what we’ll call an executive cartoon, shown below.
After World War II, European Countries, through three treaties of Rome (1957 – 1958), created three common communities: European Atomic Energy Community (EURATOM), European Coal and Steel Community (EUCASC) and the European Economic Community (EUEC). Then in July of 1987 the 12 members of the EUEC executed an agreement the Single European Act, this event was the seed from which the EU flowered. So, we can look at the EU as a Co-op between sovereign countries for the mutual benefit of all countries.
The EU has been evolving since 1987 and today has 28 members. What is so appealing about the EU is the concept of eliminating borders, allowing the free movement of labor and other factors of production and eliminating foreign currency translations through a common currency. The net result is what we’ll call the Economist’s Nirvana. It’s what all professors dream about. Academics eat the stuff up. However, it’s imperative that you keep in mind that academia is great at concepts but exceedingly poor at implementation. Their thought process is let’s just do it and things will work themselves out. Well, things haven’t worked themselves out; just ask Spain how they feel about the wave of Romanian criminal enterprise.
So, here’s the reason why we think the EU will not be a lasting arrangement.
The picture above shows a number of large buckets the actual number of buckets should be 28, one for each member, but you can kiss my ass if you think I’m going to sit here and draw 28 buckets. The blue coloring represents water and you’ll note that not all buckets have the same amount of water. The water represents the gross domestic product of the member countries. The circle with the X represents the Council of the EU, in Brussels, which we have designated as the “Council of Illuminati”. Opening the valve starts the flow of water, which will eventually seek its own level; initially benefitting those with less water. Once equalized, all buckets should benefit equally as the EU prospers then things will be great. The social agenda behind the EU is the creation of a homogenous people void of national identity and the atrophy of local governments who cede decision making to the Council of Illuminati, thus undermining self-determination in the member nations.
Next, imagine if we could set up the same thing in the Western Hemisphere and Asia Pacific (both of which have already started.) We could find ourselves with a total of three Councils of Illuminati all of whom are comprised of appointed officials. But wait, how do you get the 3 different councils to work together? Easy, you create a “Council of Illuminati Cum Laud.”
Folks there are all kinds of reasons why the 28 buckets have different amounts of water. Those countries who limit regulations, have educated labor, abundant natural resources, moderate weather, stable governments, access to capital and posses an industrious national character will always have more water in their buckets. However, under the EU model, they are expected to carry the load for those members lacking equal qualities; Greece is the glowing example of that.
The United Kingdom simply said “enough is enough.” We’re very concerned with comments coming out of the EU’s Council of Illuminati suggesting sanctions against the UK for leaving the organization. A colossally stupid thing to say and reminds us of Mel Brook’s Blazing Saddles where the sheriff puts a gun to his head and says to the angry crowd “don’t move or I’ll shoot the(redacted)”