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Will UK's currency collapse trigger the next global financial crisis? [Video]

How To Trade Is Now The Top Trending Search Term On Google…

 This comes as no surprise, considering that online searches for trading have hit the highest on record since the Global Financial Crisis in 2008 – as savvy traders rush to capitalize on the biggest and most explosive macro themes driving the markets right now from Inflation, Rate Hikes, Recession Risk, The Global Energy Shock – And of course the Global Currency Crisis that is currently unfolding!

 As the famous saying goes – “do not waste a good crisis”.

 Right now we have crisis on top of crisis, which as traders know – translates to opportunity on top of opportunity.

 This is the time that traders wait decades because its times like these that gift regular people with an ultra-rare window of opportunity to create life-changing wealth!

 There is no deny that central banks across the world have dialled up their ambition to combat inflation in recent weeks. In response, traders have boosted odds that a major financial and economic crisis can’t be ruled out. That means global monetary policy hawkishness may have hit its peak and something will eventually break.

 Earlier, this week top U.S Federal Reserve officials warned that the next global financial crisis will stem from the UK's historic currency collapse.

 The British pound fell to its lowest level ever against the dollar on Monday, prompting economists to compare its trajectory to that of an emerging market currency.

 In a statement following UK chancellor Kwasi Kwarteng’s £45 billion tax-cutting package, Raphael Bostic, president of the Atlanta Fed, said the plan “has increase the chances of the world tipping into its next financial crisis.

 Bostic’s comments came on the heels of a warning from former U.S Treasury secretary Larry Summers, who blasted the UK’s tax cuts as ‘utterly irresponsible’ and signalled “a currency crisis in a reserve currency could have significant global consequences”.

 The sudden sell-off in the British pound comes as traders brace for more aggressive interest rate hikes from the Bank of England. 

Last week the Bank of England's monetary policy committee voted to increase its benchmark interest rate by 50 basis points to 2.25% – the highest since the global financial crisis, with a firm promise of further rate hikes to come.

 The Bank of England next meets in November and traders have already starting pricing in expectations rates could rise above 6% next year.

 As the British pound hits all-time record lows this week – Gold and other precious metals priced In British Pounds, which are all tradable across varies platforms hits all-time record highs.

 With global monetary debasement now in full swing, the big question is will other fiat currencies face the same outcome?

 Only time will tell, however, the one thing we do know is that extraordinary times create extraordinary opportunities and right now, this market is a traders dream – packed with unlimited money-making opportunities to capitalize on the short-term macro-driven volatility!

 Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

Author

Phil Carr

Phil Carr

The Gold & Silver Club

Phil is the co-founder and Head of Trading at The Gold & Silver Club, an international Commodities Trading Firm specializing in Metals, Energies and Soft Commodities.

More from Phil Carr
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