Fear and mass panic are known to among the most dangerous threats we face…
And absolute chaos could ensue for currency markets, if the warnings hold true.
Tomorrow is the much feared Brexit vote, and on the eve of such a momentous referendum that could lead to the dissolution of the European Union, there is a great deal of worry as investors feverishly exchanged ‘safe’ currency in case of a destabilization of the British pound or the Euro.
As RT reports:
Thousands of Brits have rushed to buy foreign currency during the last week over fears the pound will drop more than 20 percent if the UK votes to leave the EU.
The Post Office reports sales of currencies are 74 percent higher this week than they were during the same week last year [note: where about 25% of foreign currency exchanges are done in the Britain].
While many Brits have been steadily buying more foreign currency since the start of May, others have been investing in gold bars and bullion coins.
Market jitters over a potential Brexit have prompted some online money transfer companies to suspend services temporarily on polling day…
The Post Office has allayed fears of a ‘run on the bank’, reassuring Brits it is well stocked and will not run out of foreign cash.
The global basket of major currencies is already in a phase of potentially major losses, as the dollar faces challenges by a rising yuan and the era of the petrodollar could be coming to an end.
Major players from the banking and elite billionaire world have been chiming in, warning of financial destruction if Brexit should succeed.
For his part, George Soros penned an op-ed eerily titled: “The Brexit crash will make all of you poorer – be warned.“
24 years later Soros is back, and this time he is warning against the kind of devaluation that made him a billionaire and which he believes will be unleashed by Brexit, when in a Guardian Op-Ed he wrote that U.K. voters are “grossly underestimating” the true costs of a vote to leave the EU, saying that there would be an “immediate and dramatic impact on financial markets, investment, prices and jobs.”
He predicts that the pound would decline “precipitously”, seeing a gargantuan drop of at least 15% and possibly >20% to below $1.15. Considering it has now become trendy for analysts to come up with ever “doomier” forecasts of just how low cable would plunge in case of Brexit, we are surprised Soros stopped there.
It is notable that Soros’ warning comes just days after that of Jacob Rothschild himself who said in another Op-Ed, this time for The Times, that leaving the EU could lead to a “damaging and disorderly situation” in the UK as he urged Britons to vote ‘remain’. Just like Soros, Lord Rothschild, suddenly exhibiting a rare strain of humanitarian concern, said readers should not “risk the wellbeing of our country”and European countries are “better off together”.
He said that “at present we enjoy being a permanent member of the UN security council and we are essential to the G8 and Commonwealth. But diplomacy, defence, the environment and our values of being a liberal democracy will all be at risk” adding that “I can see no good reason why we should accept our playing a diminished role on the world stage,” especially if his own personal fortune would be jeopardized.
Though they are clearly biased, and almost certainly casting fear and doubt in the hopes of preserving the elite-crafted EU structure, they are poised to make new fortunes by exploiting such a split at the expense of the people caught in the middle.
The referendum polls for the Brexit vote are very close, and it is being considered to close to call.
Better prepare your holdings just in case there is an upset in currency stability.