The Big Guns Are Out: Soros, Rothschild Warn Of Brexit Doom; Osborne Threatens With "Suspending" Market

Tyler Durden's picture

The big guns are officially out.

Just yesterday, we recounted the story of "Black Wednesday" when on September 16, 1992, the UK was forced out of the EU’s exchange-rate mechanism, or ERM, when the BOE tapped out and allowed the British pound to float freely, leading to 15% losses in the sterling. As we noted, this was George Soros' infamous trade which "broke the Bank of England" and made the Hungarian richer by over $1.5 bilion.

24 years later Soros is back, and this time he is warning against the kind of devaluation that made him a billionaire and which he believes will be unleashed by Brexit, when in a Guardian Op-Ed he wrote that U.K. voters are “grossly underestimating” the true costs of a vote to leave the EU, saying that there would be an "immediate and dramatic impact on financial markets, investment, prices and jobs."

He predicts that the pound would decline "precipitously", seeing a gargantuan drop of at least 15% and possibly >20% to below $1.15. Considering it has now become trendy for analysts to come up with ever "doomier" forecasts of just how low cable would plunge in case of Brexit, we are surprised Soros stopped there.

Here Soros makes the distinction how the collapse in cable would be different from the one that made him richer by saying that this devaluation wouldn’t be “healthy” like the one in 1992 because BOE wouldn’t cut rates, U.K. has large current account deficit and devaluation unlikely to improve manufacturing exports this time. Just don't tell that to the BOJ, which would gladly leave the EU - twice if it had to - if it meant a 20% devaluation.

“Brexit would make some people very rich - but most voters considerably poorer”; “there are speculative forces in the, markets much bigger and more powerful" than the speculators that profited from the 1967 devaluation at Britain’s expense. "A vote to leave could see the week end with a Black Friday, and serious consequences for ordinary people."

Here is the gist of Soros' scaremongering, from the Guardian op-ed titled "The Brexit crash will make all of you poorer – be warned":

David Cameron, along with the Treasury, the Bank of England, the International Monetary Fund and others have been attacked by the leave campaign for exaggerating the economic risks of Brexit. This criticism has been widely accepted by the British media and many financial analysts. As a result, British voters are now grossly underestimating the true costs of leaving.

 

As opinion polls on the referendum result fluctuate, I want to offer a clear set of facts, based on my six decades of experience in financial markets, to help voters understand the very real consequences of a vote to leave the EU.

Of course, Soros' set of facts may be clouded by his far greater equity stake in equity interests around Europe, and the globe, which would be drastially impacted by not only a Brexit, but by a European Union which is suddenly on the rocks.

From that point on, Soros' entire analysis is on the "worst case" scenario centered around a collapsing pound, something which most ironically every other central bank around the globe is so desperate to achieve:

... sterling is almost certain to fall steeply and quickly if there is a vote to leave– even more so after yesterday’s rebound as markets reacted to the shift in opinion polls towards remain. I would expect this devaluation to be bigger and more disruptive than the 15% devaluation that occurred in September 1992, when I was fortunate enough to make a substantial profit for my hedge fund investors, at the expense of the Bank of England and the British government.

At least he is honest.

It is notable that Soros' warning comes just days after that of Jacob Rothschild himself who said in another Op-Ed, this time for The Times, that leaving the EU could lead to a "damaging and disorderly situation" in the UK as he urged Britons to vote 'remain'. Just like Soros, Lord Rothschild, suddenly exhibiting a rare strain of humanitarian concern, said readers should not "risk the wellbeing of our country"and European countries are "better off together".

He said that "at present we enjoy being a permanent member of the UN security council and we are essential to the G8 and Commonwealth. But diplomacy, defence, the environment and our values of being a liberal democracy will all be at risk" adding that "I can see no good reason why we should accept our playing a diminished role on the world stage," especially if his own personal fortune would be jeopardized.

* * *

Finally, completing the doom loop, was none other than Chancellor George Osborne who, according to the Telegraph, "refused to rule out suspending trading on the London stock market if Britons vote to leave the European Union on Friday morning... The threat from the Chancellor, made in an LBC radio interview on Monday evening, after the market had closed could force shares down in London as early as Tuesday morning."

Iain Dale, the presenter, asked Mr Osborne: “If the financial markets do plummet on Friday would you have to consider suspending trading on the FTSE?”

 

The Chancellor responded: “Well look, the Bank of England and the Treasury – Governor Carney and myself – we have of course discussed contingency plans.

 

But the sensible thing is to keep those secret and make sure you are well prepared for whatever happens but if you set them all out in advance then you rather undermine the power of those plans.”

 

Pushed again on the contingency plans, Mr Osborne said: “I have a responsibility to the people listening to this programme to do all I can to protect them.  But I have to tell you that you cannot in the end protect people from the economic shock that leaving the EU would bring about.”

And in case the threat of shuttered markets was not enough, Osborne also hinted at imminent mass layoffs, suggesting that redundancy notices could be issued hours after Britons vote to leave the EU at the vote.

Mr Osborne pointed to warnings from the London Stock Exchange there would be 100,000 job losses in the City after a Brexit.

 

Mr Osborne was challenged about whether redundancies warned by the bank JP Morgan could come as early as Friday – the day after the referendum. Mr Osborne replied: “I think that will start to happen very quickly, sadly.”

Amid all this gloom, Osborne presented the "only" alternative that would not lead to the imminent economic collapse he so forcefully imagines:

"he added that if the UK voted to remain there would be a “quick snap back” for the British economy, he said that “decisions will be taken and investment will come in”. Asked if these redundancy notices would be issued on Friday morning if Britons vote to leave, Mr Osborne said: “That will start to happen very quickly sadly.”

Now if only the people will do what these noble public servants tell to do in their own best interest...

Finally, Osborne also played down claims he could be forced to leave the Treasury after the referendum amid anger form Tory backbenchers over the way he has campaigned, saying: “It’s really not about my job”.

Oh but is George, just like it is in Soros and Rothschild's own self interest for the people to vote "Remain." To suggest otherwise is naive, but it may also be irrelevant. With just three days until the vote, the scaremongering tactic, not to mention the murder of an innocent woman, may have already done its job judging by the reveral in public opinion.

In any case, one can only hope that unlike the case of the failed Greek referendum where the people voted one way only to get the opposite, no matter how the Brits vote, it will truly represent the democratic will of the majority and that particular outcome is what they get.

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Bananamerican's picture

"There'll be a little something extra in your pay packet this winter solstice" - the Illuminati

Supernova Born's picture

Lord Satan gives his word this is a good deal, now sign.

Deathrips's picture

These satanic fucks are going to burn it down now that its been looted...and try and blame the people.

 

FUCK THEM

 

RIPS

TeamDepends's picture

That's right and it's up to each and everyone of us to direct the rage towards the banksters and away from each other.

J S Bach's picture

Kudos to all of the above comments.  Yes, I too, will - out of necessity - use crude language... Fuck the satanic tribalists.

The "doom" that looms is their own... if ever their nefarious schemes begin to fall apart.

They will use every tactic to frighten the uneducated into their ovine fold.  We must continue to sound off the truth... even if only behind our keyboards.  More and more people are waking up.

BaBaBouy's picture

""- "My 60 years of experience tells me the pound will plummet, along with your living standards. The only winners will be speculators" - George Soros
- "All the evidence shows that Brexit would be a disaster" - Jacob Rothschild
- "You cannot in the end protect people from the economic shock that leaving the EU would bring about." - George Osborne""

RUN Brits... Leave and R$UN While YOU CAN !!!

TeamDepends's picture

We're going off the rails on a crazy (EU) train
-Ozzy Osborne

Ignatius's picture

Democracy can be so inconvenient (for the establishment) sometimes.

jbvtme's picture

"do the opposite of what bart says":  homer simpson

mofio's picture

What Soros and Rothschild have in common.
https://goo.gl/bFYusM

beemasters's picture

The vultures that prey on poor people all over the world and instrumental in making them poorer suddenly care that people will become poor because of Brexit??? Gimme a break.

The British should take this as a serious terrorist threat and hang them if this threat is made a reality.

Pinto Currency's picture

 

Why the markets will at some point have to be shut down:

http://www.safehaven.com/article/41741/disappearing-gold-and-silver-inventories-point-to-bond-market-turmoil

Blame Brexit, blame somthing else -  your choice.

These rigged paper metal markets are coming apart and interest rates will rise rapidly.

AVmaster's picture

If these guys are crying doom n gloom then it must be GOOD!

 

FORWARD!

eforce's picture

The Rothschild's own a lot of a estates in the UK, I doubt they will let the UK sink with the EU and risk loosing them.

I think they're just covering themselves so that when they get the winnings they don't get the bad PR like in 1992.

conscious being's picture

Iceland is a shining example.

Déjà view's picture
Got another shining example? Iceland GDP Growth Rate  1997-2016 | Data | Chart | Calendar | Forecast Iceland's economy contracted 0.5 percent on quarter in the first three months of 2016, following a 1.1 percent drop in the previous period. Government spending fell 0.1 percent (+0.5 percent in Q4), gross fixed capital formation grew at a slower pace (+4.4 percent from +5.2 percent in Q4), exports shrank (-0.5 percent from +2.5 percent in Q4) and imports recorded a smaller growth (+5.5 percent from +8.3 percent in Q4). In contrast, household consumption remained robust and grew 1.8 percent, the same as in the previous period. Year-on-year the GDP advanced 4.2 percent, higher than a 3.2 percent rise in the previous quarter. GDP Growth Rate in Iceland averaged 0.77 percent from 1997 until 2016, reaching an all time high of 9.60 percent in the second quarter of 1998 and a record low of -7.60 percent in the first quarter of 2009. GDP Growth Rate in Iceland is reported by the Statistics Iceland.

http://www.tradingeconomics.com/iceland/gdp-growth

conscious being's picture

This year the International Monetary Fund declared that Iceland had achieved economic recovery 'without compromising its welfare model' of universal healthcare and education. Other measures of progress like the country’s unemployment rate, compare just as well with countries like the US.

Three charts that show Iceland's economy recovered after it imprisoned bankers and let banks go bust - instead of bailing them out. Independent.co.u

Granted they are doing worse in 2016. So is most of the rest of the world.

HopefulCynical's picture

If Morgoth and Sauron - I mean, Rothschild and Soros - oppose it, it's good for humanity.

The Saint's picture

BREXIT fools, BREXIT.... Or die a death of a thousand cuts.

Motasaurus's picture

The Rothschilds made their fortune lying about the outcome of Waterloo and robbing the British blind.

I don't trust a word that comes out of their mouths. Maybe it's a bluff and they're telling everyone Brexit will be a disaster, but they've already rigged it to have a Brexit and make a self-fulfilling prophecy that they win on. 

conscious being's picture

I read a Russian analysis a week ago that said same. The idea was the RedSchields were taking England in a new direction. They want to be the intermediary. They want to get involved in EurAsian integration? Someone did mention a long time ago connections between Nigel and the RS and I like Nigel. He did shoot down a combined front with Marie Le Pen who just seems to get the worst lashings in the ZinoPress. I hope they Brexit and start the end of this monetary tyrrany.

British goods would move with a 20% price cut. Agriculture aka, the countryside would benefit as people produced replacement crops and produce for expensive imports, as is going on in Russia right now.

Déjà view's picture

Big Guns Are Out...

Ironic...anyone wanting to leave BRITISH EMPIRE only option was take up arms e.g. U.S., most others had to endure 150 years of British rule Under The Gun...

Go England...Go Scotland...Go Wales...Go Cornwall show meek the way...

wee-weed up's picture

 

 

The hand-wringing of the elites is not really needed...

Unfortunately, Brexit is already doomed due to the assassination of the MP...

People are suckers for the "sympathy vote."

Things that go bump's picture

It is hard for me to believe that people would change their vote over something as minor as the assassination of a politician by some crazy. I mean, really, who cares for more than a few minutes? Crazies are everywhere and for someone in the public eye its hard to protect against them if you don't have decent security. Even then, once in a while one of them will get through. Its inevitable. 

OverTheHedge's picture

Its been a long time coming: MPs emptied psychiatric hospitals ("care" in the community) to reduce healthcare costs, which made life for the general public somewhat difficult. Finally, as a direct result of political policy, an MP has suffered.It is hard to be sympathetic. How many non-famous have suffered because loonies are out in the real world, without help and assistance? http://www.telegraph.co.uk/news/uknews/crime/10358251/Truth-about-danger...

 

Assuming that we believe the "lone crazy" story, that is.

WmMcK's picture

Its been a long time coming ... it will be a long time gone (before the dawn).

 

Déjà view's picture

Iceland was hammered by the gods...alright

As were many Brit investors looking for big Icelandic ROI. Whale hunting and cod drying classes fully booked...

weburke's picture

electronic voting, there IS no real vote or poll

they perform as if there is.

DownWithYogaPants's picture

Oh well if Darth Soros says so.

But so what on the living standard or otherwise.  Can not put a price on freedom.  Money can be replaced with work.  Freedom can not.

Lore's picture

Yeah, this is a queer statement: "...No matter how the Brits vote, it will truly represent the democratic will of the majority and that particular outcome is what they get." HUH?!? 

I believe fellow ZHers will find that the FACT of the matter is that this is NOT binding: British MPs are under NO compunction to act strictly according to the wishes of the electorate, even in the event that some patriotic standouts should wish to do so:   

Parliament doesn't actually have to bring Britain out of the EU if the public votes for it (Business Insider, 14-June)

A vote for Brexit will not be determinative of whether the UK will leave the EU. That potential outcome comes down to the political decisions which then follow before the Article 50 notification. The policy of the government (if not of all of its ministers) is to remain in the EU. The UK government may thereby seek to put off the Article 50 notification, regardless of political pressure and conventional wisdom.

 

This has to go down as one of the largest pieces of small print in British political history.

 

The overwhelming majority of the British public is probably totally unaware of this legislative loophole. As far as most Brits understand, Britain will no longer be an EU member if Leave wins next week's referendum.

Consider the lack of action on the migrant situation.  Worse, the psychopaths are actually FUNDING and FACILITATING this trouble. They WANT it.  They WANT broken nations.  Everything that we're shown is a pile of manipulative, duplicitous, bought-and-paid-for GARBAGE.  Honestly, can anyone here see the globalists allowing a peaceful exit?  SERIOUSLY? 

y3maxx's picture

...USA Trump theory.......Soros, Rothchild et al just guaranteed a Brexit win.

AdolphLustig's picture

Fuck ozzy!

He is a fat, braindead satanic fuck who married a jewess and spit out evil ugly kids.

Freddie's picture

+100

The rest of Black Sabbath - Geezer Butler, Bill Ward and Tommy Iommi are all working class gents still close to their Birmingham roots.  Ozzy is a wanker.

A drug up moron who the band left at a LA hotel room ecause he was a junkie.  Sharon saved him ut he sign a deal with two devils (her and her father).

conscious being's picture

Sounds similare to the Nirvana guy Kurt Cobane? Courtny Love story. Ozzie's still alive though. As far as we know.

wherewasi's picture

Generals gathered in their masses,
just like witches at black masses....

palmereldritch's picture

The Assyrian came down like the wolf on the fold,
And his cohorts were gleaming in purple and gold;
And the sheen of their spears was like stars on the sea,
When the blue wave rolls nightly on deep Galilee.
Like the leaves of the forest when Summer is green,
That host with their banners at sunset were seen:
Like the leaves of the forest when Autumn hath blown,
That host on the morrow lay withered and strown.
For the Angel of Death spread his wings on the blast,
And breathed in the face of the foe as he passed;
And the eyes of the sleepers waxed deadly and chill,
And their hearts but once heaved, and for ever grew still!
And there lay the steed with his nostril all wide,
But through it there rolled not the breath of his pride;
And the foam of his gasping lay white on the turf,
And cold as the spray of the rock-beating surf.
And there lay the rider distorted and pale,
With the dew on his brow, and the rust on his mail:
And the tents were all silent, the banners alone,
The lances unlifted, the trumpet unblown.
And the widows of Ashur are loud in their wail,
And the idols are broke in the temple of Baal;
And the might of the Gentile, unsmote by the sword,
Hath melted like snow in the glance of the Lord.

Or....alternatively, this

http://tinyurl.com/jd5t94k

Ralph Spoilsport's picture

Has anyone considered that he's really betting on "Leave"? The investments that would get hurt from a Brexit might be the hedge against his actual, really yuuuge play.

scintillator9's picture

That would make a lot of sense when one thinks about the ramp-a-looza since last Thursday.

Had everything began to plunge into the abyss since Thursday, would everyone be buying the dip?

Pavlov would be so proud.

 

IndyPat's picture

Has anyone considered the wisdom of listening to someone whose entrails should be decorating your streets at best or rotting in your darkest prison at worst?
This man is the worst kind of criminal in any country...but in the UK?
Shit. is he even allowed in the UK?

True Blue's picture

Nice threats though, aren't they? The Bagel Mafia took a page straight from the mob's shakedown playbook. "It'd be a real shame if somethin' happened..."

"My 60 years of experience (screwing every dime including the gold fillings from my victims) tells me (that I can make) the pound plummet, along with your living standards. The only winners will be speculators (like me)" - George Soros

"All the evidence (of my entire family history) shows that (if you) Brexit (I will do everything in my considerable power to make sure it) would be a disaster" - Jacob Rothschild

"(I will make sure that) You cannot in the end protect people from the economic shock that (I will ensure) leaving the EU would bring about. (Even if my minions and I have to thrust you straight into the jaws of WW III)" - George Osborne""

Edit: Tylers, is there some trick to making strikethrough work?

cheka's picture

nailed it

any grexit/brexit/pigsexit effort will be dealt with like a palestinian rock thrower

conscious being's picture

Re. Strikethrough question. Answer: No. It is not supported. That and a few other flourishes are stripped out, wisely so, in the interest of speed.

EddieLomax's picture

When Soro's tells us that something is in our best interests that's as good as a Gartman stock call to tell us which way we should vote, the opposite.  The only thing that sick fuck is interested in is looting any productive people to fund his regime change fantasies around the globe.

I bet, if in the unlikely event we did exit the EU, Soro's would be exposed to have a big financial bet go against him.

Dormouse's picture

They will also continue to hold the idea of a crash over our heads with every major choice presented in the future. Just get it over with already, once they pull the trigger, their power is gone.