Shocking the whole world, the British people voted on June 23, to leave the European Union — a move nicknamed Brexit.
Unexpectedly, the Leave voters won 52 to 48 percent. Although there was much anger at the decision, there were also plenty of voices cheering on the British on June 24. That chorus included CNBC On Air Editor Rick Santelli who acknowledged there would be economic ramifications, but cheered the UK for having the “backbone” to change direction and head “down the right road.”
Santelli, made famous by his 2009 rant about the need for a U.S. “tea party,” reacted to Brexit saying, “It’s tea time in London!”
Squawk Box host Becky Quick prodded Santelli, “I wanted more from you on this. What are your thoughts?”
Santelli responded by telling anyone to “beware” of central banks, central planning policies and easy money. He argued Brexit was about “reversing financial repression.”
Using the metaphor of a car GPS, Santelli argued that the British economy had been going “down the wrong road” but was now “going down the right road” and that it needs time to recalculate.
“This is a good move. I give the Brits credit. It took backbone. Took backbone to go against the tide,” Santelli said.
He admitted there would be economic repercussions. Overnight, the currency exchange rate for the British pound abruptly fell to 1.32, the lowest rate since 1985. US stock markets also dropped dramatically the morning after the Brexit vote.
“My guess is their [Britain’s] rates are going to keep going down a bit. It's going to be a rough ride for the UK,” Santelli said.
However, he argued these consequences would be short-term, not long-lasting.
