There was an event that happened Friday that rocked the markets all over the world. The UK voted to leave the European Union. Many people don’t even know it happened. The effect on Friday was that the Dow Jones was down 600 points. Gold shot up 5%, many other stock markets were down and interest rates look like they could go down again, if possible.

Now, the UK is still part of the European Union today and it could take 2 years for them to actually sever the ties that bind them to the EU. So, no one really knows what the fall out from this will all mean.

The markets went down because they all thought the UK would remain in the EU and they got surprised by the news. Usually, markets don’t like uncertainty. It causes people to spend less and profits go down.

I think our stock market is way overpriced anyway and our economy is a lot weaker than the government would like for you to believe it is. I feel like our economy and our money system is like a balloon in a world full of needles. You never know which needle will pop it, but it will probably pop sometime.

Now, Brexit was a pretty big needle. It may not be the one that pops our economic system, but it could start us in that direction. I can’t see that we are going to prosper a whole lot in the next few months. Our economy is slowing with interest rates near zero. There isn’t a whole lot more the Federal Reserve can do to stimulate the economy.

I suspect that over the next few months, we will see our economy continue to slow down. There aren’t a lot of things that those in charge can do to prevent this. There will come a time when things will start to go bad very rapidly. I don’t know exactly when that will happen, but I don’t expect it to be too far in the future.