Get ready for the first economic shock of 2016...the UK will leave the EU!

Thanks to William for the link!

via Bloomberg.

he pound dropped to a three-week low after

polls showed more Britons favored quitting the European Union,

reviving concern the June 23 referendum will throw global

markets into turmoil and undermine confidence in the 28-nation

trading bloc.

Sterling fell against all of its developed-market peers

after three surveys Monday showed a lead for the ‘Leave’

campaign. A gauge of anticipated swings against the dollar in

the next month surged to a 7 1/2-year high.

The Bank of England has said uncertainty surrounding the

vote is hurting U.K. growth, while institutions including the

International Monetary Fund and Organisation for Economic

Cooperation and Development have warned of dire consequences if

the nation votes to leave the world’s largest single market.

Federal Reserve Bank of Chicago President Charles Evans said the

referendum is undermining confidence in the global outlook at a

time when the international economy is already losing momentum.

“Today’s move was a function of reality sinking in for

overseas investors -- the referendum will be a close outcome,”

said Viraj Patel, a foreign-exchange strategist at ING Groep NV

in London. “We’re probably seeing some of those long post-Brexit

pound bets unwind.”

Have no fear, this will be the first of many shocks for the EU.  I'm updating my prediction for terrorism in Europe this summer.  I believe we will see multiple attacks carried out by a couple of cells.  Add the UK leaving the EU and the probability that at least a couple of other countries will do the same and chaos in the financial markets is a given.

This will be a VERY interesting year.