Pulse Price Report: What Is Brexit?

If you have ever been to Europe, you may have been amazed at being able to travel from London to Paris and Rome without ever taking out your passport. But Britain may be taking the first step in putting those borders back in.

On June 23, British citizens will vote on whether to stay in the European Union (EU) or set out on their own sovereign course. The referendum was a promise from Prime Minister David Cameron during his campaign for reelection, despite Cameron’s opposition to Brexit (shorthand for “British exit”).

Those in support of Britain abandoning the 28-state union say that regulations on businesses and steep membership fees imposed by the EU are suffocating the second-strongest economy in the union. Breaking away from the EU would allow Britain to function on its own and give it more weight in the global economy.

But the opposition to Brexit says that the move will cut the country off from its biggest market, Europe.

The union of European states has taken on a few different names since it began in 1951. It was a way to bring together struggling post-war nations by making trade easier.

Britain is the strongest economy in the EU behind Germany and leaving it would be a huge blow to the collective EU economy. It would be like Wisconsin losing the tax dollars and free trade in Madison if the city put up borders and left the state.

But removing restrictions on global trade outside of the EU put forth by the union government would give Britain an advantage in global trade. Looking at trade, those in support of Brexit are putting their faith in a globalized economy over the free trade within Europe.

Some economists say this will create a domino effect with other strong EU nations that now have to support even more of the struggling union looking for an exit.

For the United States, there are few stronger global allies in terms of military presence and economic activity than Britain. For the country to leave the EU would also bottleneck the United States’ access to the group of nations. This idea has caused President Barack Obama to urge voters against leaving the EU.

Cameron agrees and he has been working on negotiating better terms for Britain within the EU should voters choose to stay in. Britain has already separated itself more than most nations in the EU by keeping its currency (the pound) and holding the rest of the countries who are seeking “an ever closer union” at arms length.

But on June 23, the country may push itself away completely from the EU, weakening one of the most developed group of nations in the world.

Crop prices (May10)

Rio Creek Feed Mill – Algoma

Fox River Valley Ethanol – Green Bay

Basis: The difference between the local cash price for a commodity and the Chicago cash price (where the Board of Trade sets national futures price).

Gas Price Averages

United States: $2.20

United States one year ago: $2.66

Wisconsin: $2.20

Wisconsin one year ago: $2.55

Northern Door: $2.35

Sturgeon Bay: $2.27

Other Commodities

Gold: $1,259.40/troy ounce

Silver: $17.06/troy ounce

Oil: $43.93/barrel

Sources: aaa.com, agweb.com, gasbuddy.com, cnn.money, The Economist, BBC World News