Legend Art Cashin just warned King World News that central banks are desperately trying to avoid a global meltdown as the Brexit earthquakes shakes the world.
Brexit Earthquake Rattles The World
Art Cashin: “It (Brexit) has become a kind of economic earthquake that has rattled around the globe into almost every market that trades.
You saw some of the European banks down 15 – 20 percent. There were air pockets in some of the currencies that traded.
This was a dramatic event. The rebellion against the ruling class is now evidently a global event and I would look for that (rebellion) to continue. This is not going to be a one day event. This is going to be the beginning of a process that will carry on for weeks and maybe through the end of the year.”
Eric King: “Is Brexit going to set off a series of cascading events like we saw in 2008 or is that what the central banks are doing right now — they’re stepping in and saying, ‘We just can’t let this get out of control. We have to stop this from getting totally out of hand.’”
Art Cashin: “That’s unquestionably what they are doing. Central banks are trying to prevent it from turning into that (2008-style) situation. I think this is something that we will see evolve over the coming days and weeks. The potential is there for it to turn into quite a disruptive mode, so I would not get too far away from where I need to communicate with you.”
Cashin added this regarding the gold market: “You’ve got to remember that gold is the currency without a central bank. And in today’s environment, people are not too happy with what the central banks are doing. So that will lead more people than normal to see gold as a storehouse of value and an alternate currency for them to be in. The thing that will send gold into the stratosphere will be if we begin to see some velocity in our money because that could be the spark that could set off inflation, maybe even hyperinflation.” ***Due to the enormous volatility in the aftermath of the Brexit vote, KWN will be releasing updates and interviews all day today.
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