By Frank McGuire – Re-Blogged From NewsMax
Marc Faber, editor of “The Gloom, Boom & Doom Report,” predicts that Britain’s potential withdrawal from the European Union, also known as “Brexit,” would be bullish for global growth.
“I happen to think that a Brexit would be bullish for global economic growth,” Faber told CNBC. “It would give other countries incentive to leave the badly organized EU.”
With growth looking shaky, worries that the Brexit vote could tip Europe back into recession have moved to the head of a list of concerns for investors which includes banks’ problems with negative interest rates and dangerous imbalances in China.
A poll late on Friday gave Britain’s “Leave” camp a 10-point lead. Other polls have been tighter, but money markets have now abandoned expectations, high just weeks ago, that the U.S. Federal Reserve could raise official borrowing costs on Wednesday, just 8 days before the U.K. vote. Instead, the worry is that the Fed could use language that quells expectations of a move this year at all.
Faber said small countries like Croatia, Estonia and Malta would also prosper as independent nations versus being a part of a larger system.
The EU has 28 members that operate within a single market with the goal of encouraging the free movement of goods and services. British Prime Minister David Cameron has expressed disdain for leaving the bloc, explaining in a piece for The Telegraph that doing so would “be the gamble of the century.”
Faber said the European Union is an “empire that is hugely bureaucratic.”
He also dismissed fears that a Brexit would be a global economic disaster. “On the contrary, it would be the best thing for Britain that would ever happen!”
Faber defended his case by citing Switzerland, which is not a member of the EU nor the European Economic Area. “Switzerland is doing much better than any other country in Europe. So maybe Britain would do the same?” said Faber.