What is BREXIT and what will it mean to everyone?

Last year this time we were all talking about GREXIT now we are here a year later talking about the four letter E word and this time it is BREXIT.

For the uninitiated, BREXIT is the referendum Britain is going to have at the end of June for either Staying or Leaving the European Union.

1973 was when Britain joined EU and they did not even join Euro so at the very beginning they were not comfortable of clubbing everyone in Europe with them.

Now they are contemplating to leave EU again and in the short term it may have some risks. Some of them that come to my mind are below.

People internally are divided in Britain in terms of staying or leaving.

EU is bigger than US in terms of GDP. Business confidence may be affected and it may lead to a recession in business investment.

Pound Sterling may lose value a bit. 

US companies may have a tough time selling in Europe and that may lead to US slowdown.

One risk is that Scotland may want independence from UK even more now since they are really wanting to stay in the EU.

Northen Ireland and Republic of Ireland may not be comfortable anymore with each other. UK may break up since Scotland and England may also differ as pointed above.

So what are the advantages for UK to leave?

UK has to comply for rules set for everyone else.

A chain is only as strong as the weakest link. So why keep weaker countries which are weak links that currently make EU. This is a drag for UK and its GDP

UK has to pay for the spend thrift countries who do not have fiscal discipline.