Veteran commodities trader John Tsitrian says the British exit from the European Union bodes ill for South Dakota, whose export-oriented businesses depend on global stability and a lower dollar for their profits:
As the Brexit vote was nearing last week, American Farm Bureau Federation Chief Economist Bob Young said “the biggest concern is market uncertainty.” As you might expect, when times are uncertain, world traders typically convert assets into U.S. Dollars, which are still regarded as the ultimate safe haven currency on world markets. The greenback’s 4% upside spike (massive by trading standards) after the Brexit vote reflected the very uncertainty that Young called attention to [John Tsitrian, “Brexit, South Dakota, and the Continuing Delusion of Donald Trump,” The Constant Commoner, 2016.06.26].
Tsitrian cites data showing that international trade supports 22% of South Dakota jobs and that agricultural products make up over 71% of South Dakota’s $5.3 billion in annual exports. Start yanking wires out of the global economy, and South Dakota’s economy will suffer.