British pound fell 10 percent: economists warn of a global recession if turmoil continues

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The British pound fell about 10 percent against the U.S. dollar, and economists have warned of a global recession if the turmoil continues. On Monday, Britain’s chancellor of the exchequer, George Osborne, told the Financial Times that he planned to cut the country’s corporate tax rate to just 15 percent — the lowest of any major economy.
Leadsom also emphasized economic issues.
“Business needs certainty,” Leadsom, who has emerged as one of three front-runner candidates, said Monday. “I will prioritize new trade deals with the fastest growing parts of the world.”
In her speech announcing her leadership bid, Leadsom said British citizens have “just rediscovered our freedom.”
“The U.K. will leave the European Union,” she said. “Freedom of movement will end.”
Farage and UKIP, too, had taken a hard line against immigration and the freedom of movement that comes with E.U. membership. Much of the “leave” campaign, popularly known as Brexit, focused on calls for stricter border controls and full withdrawal of Britain from Europe’s common market.
In his resignation speech Monday, Farage called the European Union’s single market — which refers to the bloc as one territory without regulations on goods and services — a “big business protectionist cartel.”

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Britain's Nigel Farage resigns as leader of right-wing UKIP

 

The uncertainty among world nations and investors regarding what happens in London (a world business hub) is disturbing nations enough to create a worldwide recession. This could be the straw that broke the world economy's back.

There is an ideal reality and then there is the actual reality. I have noticed as nations come together in places like the EU and the United States there really is no going back without worldwide repercussions. I cannot completely explain it other than to say that uncertainty kills worldwide investment. People can only invest successfully into known factors. When factors are unknown investors are going to pull back worldwide.

Brexit is such an unknown factor which is causing investors to pull back and to hold back and to go into things like Gold as a hedge against problems. However, unless you are a real gold trader I have found owning gold to always be a losing proposition in the long run. (unless you are keeping it for emergency depression times worldwide). I have known of people who kept many thousands in gold hidden in planters in their homes. You would never know it was there. This is one way people hide gold in their own homes, especially people who survived World War II who saw personally all the carnage and torture and mayhem that brought to the world.