– Brexit no-deal would lead to “worst crash since 1930s”
– Gold rose 0.6% in dollars and 1.2% in pounds today
– UK economy could contract by 8%, house prices fall 30%, sterling fall 25% warns Bank of England
– Sterling collapse would push Irish economy into recession
– Carney’s doomsday scenario sees the crippling of UK finances, the pound crashing and inflation soaring
– BOE accused of “Project Fear” and attempt to scare UK parliament to vote against Brexit deal
via Times UK:
Britain would be plunged into its deepest recession since the 1930s under a disorderly no-deal Brexit, the Bank of England warned yesterday.
House prices could fall by 30 per cent, interest rates rise to 5.5 per cent and the economy shrink by 8 per cent — a greater contraction than after the 2008 financial crisis — its worst-case scenario showed.
Ben Broadbent, one of the Bank’s deputy governors, said that this would be worse than any crisis since “we went back on gold” and the economy subsequently crashed in 1930. In the 2008 financial crisis the British economy shrank by 6.3 per cent.
The Bank gave its assessment hours after a Whitehall analysis suggested that the economy would shrink under all versions of Brexit.
Editors Note: While the BOE’s latest warnings are alarmist, we concur with Mark Carney’s advice to “hope for the best but to prepare for the worst” by re-balancing investment and pension portfolios and owning physical gold.
News and Commentary
Gold Prices (LBMA AM)
28 Nov: USD 1,213.20, GBP 949.69 & EUR 1,074.77 per ounce
27 Nov: USD 1,225.05, GBP 959.70 & EUR 1,082.21 per ounce
26 Nov: USD 1,226.65, GBP 954.58 & EUR 1,079.33 per ounce
23 Nov: USD 1,222.15, GBP 951.69 & EUR 1,075.13 per ounce
22 Nov: USD 1,228.25, GBP 950.42 & EUR 1,074.72 per ounce
21 Nov: USD 1,224.00, GBP 957.29 & EUR 1,075.04 per ounce
20 Nov: USD 1,223.10, GBP 951.45 & EUR 1,069.97 per ounce
Silver Prices (LBMA)
28 Nov: USD 14.15, GBP 11.06 & EUR 12.54 per ounce
27 Nov: USD 14.28, GBP 11.20 & EUR 12.61 per ounce
26 Nov: USD 14.38, GBP 11.18 & EUR 12.65 per ounce
23 Nov: USD 14.26, GBP 11.12 & EUR 12.56 per ounce
22 Nov: USD 14.52, GBP 11.26 & EUR 12.72 per ounce
21 Nov: USD 14.42, GBP 11.26 & EUR 12.65 per ounce
20 Nov: USD 14.44, GBP 11.24 & EUR 12.63 per ounce
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