Brexit: An Opportunity for the UK and a Get Out of Jail Free Card for Yellen (Video)

The mainstream media and global markets have responded to the Brexit vote as if it is the end of the world.

Well, is it? Or is it an opportunity?

Peter Schiff appeared on CNBC’s Trading Nation Monday and said the Brexit hysteria in the markets and the mainstream media is unwarranted, and it actually presents opportunities on several different levels – some good and some not so good.

Brexit has certainly been good for gold. Download SchiffGold’s Free White Paper: Why Buy Gold Now?

On a positive note, Peter thinks the vote gives the UK the perfect opportunity to untangle itself from the web of big government, if it applies the Brexit principle more generally:

If anything, I think it’s a repudiation of big government in Europe. Hopefully this will end up being a positive for the British, if this is a repudiation of big government in general and not just the regulations that were coming out of Brussels…Maybe this could be a springboard for less government in the UK, fewer regulations, less government spending, lower taxes. They talk about making Britain more like Switzerland. Well, that would be a great thing.”

Then there is a darker side. Peter also said Brexit creates an opportunity for Janet Yellen. He called the UK’s vote to leave the EU “just what the doctor ordered as far as getting her out of jail free,” because now she has an excuse not to raise interest rates and to possibly even lower them down the road without ever having to admit the US economy is in a mess:

You know, she’s kind of boxed herself into a corner because she doesn’t want to admit how weak the US economy is, but then, she doesn’t want to actually raise rates. She keeps talking about the fact raising rates is appropriate because the economy is strong, but the reason she can’t raise rates is because she knows the economy is weak. And so, this gives her the perfect excuse. Now she can blame her failure to raise rates on Brexit and all of the turmoil that has resulted. In fact, she can even use this as an excuse to cut rates back to zero and launch QE4.”

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