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

Phil Carr The Gold & Silver Club

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

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.

GBP/USD bounces off lows, back above 1.3200

After bottoming out near 1.3160, GBP/USD manages to regain a bit of shine and reclaim the 1.3200 mark and beyond at the end of the week. Stronger-than-expected UK Retail Sales data seem to be helping the British Pound limit its losses, while the chaotic UK political environment keeps the bulls at bay for now.

EUR/USD looks consolidative around 1.1460

EUR/USD stages a modest rebound after slipping to a three-month low below 1.1420 at the end of the week. That said, the pair now looks to consolidate humble gains just above 1.1460 despite growing uncertainty surrounding the next round of US-Iran negotiations, which keeps the US Dollar’s downside contained.

Gold slips back to six-day lows, targets $4,100

Gold retreats for the third consecutive day on Friday, eroding gains seen in the first half of the week and approaching the key $4,100 mark per troy ounce. Indeed, the precious metal continues to face headwinds from the Fed's hawkish stance and renewed uncertainty surrounding the next round of US-Iran negotiations.

Breaking: Iran closes the Strait of Hormuz amid ceasefire deal violation

Iran says it is closing the Strait of Hormuz after accusing the United States (US) and Israel of violating the ceasefire. According to Iran, the decision came over the continued Israeli strikes in Lebanon. The Iranian Revolutionary Guard Corps Navy issued a warning to all vessels: "Do not approach the Strait of Hormuz; otherwise, your security will be jeopardized."

The Iran war didn't break the US economy, but what happens next?

Nearly four months after the start of the Iran war, the US economy remains remarkably resilient. While the conflict initially triggered a severe disruption to global energy markets and a sharp rise in Oil prices, recent diplomatic progress between Washington and Tehran has eased concerns about a prolonged supply shock.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.