Populist anger is rising worldwide in response to frequent terrorist attacks. People see bombings and shootings by Muslim immigrants and are starting to vote for policies that will shut out migrants.
The rise of Trump and his popularity is driven by populist anger at the perceived problems caused by immigration and free trade.
Britain voted today to exit the European Union. The British have had a variety of terrorist attacks and have seen partner countries suffer their own attacks. Their anger has grown enough that they are taking the drastic step of leaving the EU even though it will clearly severely damage their economy.
Today, the British Pound is trading at a massive loss other currencies. Many British firms will be exiting the country so they can stay in the EU trade zone. Their economy will enter a recession. The British Central Bank will need to raise interest rates, deepening the coming recession to possibly a depression. Stocks globally are down 2-3%.
We are entering dangerous territory in global politics as populist anger is now dictating policy in the biggest countries… this anger doesn’t listen to logic. Pretty much every economist in the world counseled Britain not to exit the EU as it would cause a market crash.
During the 1930’s Germany and other countries also had a massive wave of populist anger that pushed extremists such as Hitler into power. We are seeing the first signs of a very dangerous wave similar to that one rising in global politics.