- Brexit crisis and the uncertain global outlook left Britain’s economy on a “knife-edge” for the 3rd quarter
- Brexit will cement Bitcoin’s safe haven status
Michael Gove, the Chancellor of the Duchy of Lancaster and the person in charge of no-deal preparations said the government is considering the idea of holding a bank holding on November 1.
Amidst the concern regarding that a no-deal Brexit would cause turmoil on the financial markets, Gove told The Times,
“I don’t know if this is a good idea at all. Tell me if it isn’t. What about a bank holiday?”
Leaders told Gove a holiday on November 1 would be beneficial to the UK economy, a day banks will be closed in France.
“A bank holiday on November 1 is not government policy and will not happen,”
said a Downing Street spokesman.
Bitcoin bull Max Keiser says Bitcoin is the answer to Brexit woes,
“Brits are insane. If you’re not HODL’ing by now, you’re about to get obliterated,”
Tweeted Keiser over Gove’s holiday plan.
UK Economy Contracts for the First Time Since 2012
The effects of Brexit can already be seen as the British economy contracts unexpectedly for the first time since 2012, in the second quarter as Prime Minister Boris Johnson prepares to leave EU with or without a deal.
In this startling economic warning sign since 2016 Brexit referendum, GDP fell at a quarterly rate of 0.2%. Year-on-year economic growth dropped to 1.2% from 1.7% in the first quarter, the weakest since the start of 2018.
“The economy is stalling,”
PwC senior economist Mike Jakeman said. He further said the Brexit crisis and the uncertain global outlook left its economy on a “knife-edge” for the upcoming quarter.
June manufacturing data was poor and output contracts for the quarter at the fastest rate since early 2009, when Britain was mired in recession.
Many investors say a no-deal Brexit would tip Brexit into a recession, weaken London's position as an international financial center and send shock waves through the world economy.
Ever since the 2016 EU referendum, the pound has also plunged, after the result was announced, it suffered the biggest one-day fall since the early 1970s.
Sterling has fallen to $1.2080, against the euro the pound sank to a new two year low.
Brexit will Cement Bitcoin’s Safe Haven Status
Google searches have already risen to their highest levels in England in a year. Boris Johnson’s appointment to the role of UK Prime Minister has coincided with a spike in Google search for the term Bitcoin.
According to Nicholas Gregory, CEO of blockchain firm CommerceBlock, no-deal Brexit will cement Bitcoin’s safe haven status as such a departure from the EU will create “turmoil and volatility across two major fiat currencies” further triggering identity crisis for the global system.
“Come 2020, we expect an increasingly populist and politically unstable world to cement the safe haven status of Bitcoin and other cryptocurrencies more generally,”
“And if central banks revert to ramping up the money printing all over again, the case for cryptocurrencies like Bitcoin whose supply is capped will be further reinforced.”