What the U.K.’s Central Bank Does Next Could Have Serious Implications Here

One of the most influential financial institutions in the world is in trouble. And as I’ll show you today, it could have major implications for your portfolio…

See, I recently flew to London to catch up with my former Bear Stearns colleagues – and to do some boots-on-the-ground research for you.

While I was there, I made a stop at the Bank of England.

This central bank is one of the most important financial institutions in the world. It plays a role similar to the Federal Reserve in the U.S.

It’s tasked with ensuring monetary and financial stability for the people of the United Kingdom.

But right now, the U.K. is in a financial tailspin.

Inflation there came in at 9.9% last month. And there are fears it could hit between 18% and 22% next year.

So all this year, the Bank of England has been doing what central banks around the world are doing to curb out-of-control inflation – raising interest rates.

Last week, concerned about the prospects for economic growth, it raised its key lending rate by 0.5%. It has now raised interest rates six times this year. And its interest rate is the highest it’s been since the 2008 financial crisis.

Added to that, the British pound fell to its lowest level ever – yes, ever – this morning. There’s much uncertainty concerning the new government’s policies. The market there is reeling. And it’s bracing for a possible emergency rate hike…

But there’s a much more worrying development looming. And it’s important that we pay attention to it on this side of the Atlantic, too… 

Because it could impact the reach and power of central banks around the world, including the Federal Reserve here in the U.S.

And if you don’t understand what’s coming, it could have major implications for your wealth in the years ahead.

That’s why I’m holding an emergency briefing on Wednesday, September 28 at 8 p.m. ET.

I’ll give you all the details on what’s coming. And I’ll show you a new strategy I’ve developed that could help you make as much as 10x your money.

In the meantime, let me show you why the Bank of England is in trouble – and what I found out on my trip to London…

British Institutions

It’s a tumultuous time for the U.K.

While I was there, Queen Elizabeth passed away. That means the country lost its monarch – its head of state – who held the title for 70 years.

During her reign, Queen Elizabeth II met with 13 of the last 14 U.S. presidents.

She held special counsel with the prime minister, dating back to Winston Churchill. And she was a pillar of symbolic history here and around the world.

Yes, the time of British Imperial rule is largely a thing of the past.

But if standing in front of the historic Bank of England building told me anything, it’s that we can still learn a lot from history.

The Bank of England has been located in the same spot since 1734. That’s decades before the U.S. was even a country.

The bank has navigated pandemics and world wars. And it has withstood the economic challenges facing the country throughout it all.

It is far from a perfect institution. Yet it still remains independent from Parliament, with a mandate to maintain price stability, while also supporting the U.K. government’s economic policies.

These policies are centered – like they are in the U.S. – around growth and employment.

Similar to other major economies, the Bank of England looks to have an inflation target of 2%, which is based on the U.K.’s Consumer Price Index. It tries to achieve this by setting interest rates.

It has used its monetary reach through quantitative easing (QE) policies, like the Federal Reserve, since the financial crisis of 2008.

That has been part of what unleashed the first phase of The Great Distortion globally… which, as regular readers know, has become a permanent distortion in the wake of the pandemic of 2020.

And that brings us back to the crossroads I mentioned earlier.

More Uncertainty Ahead

Right now, there’s speculation that the Bank of England’s independence might go away soon.

The U.K.’s new prime minister, Liz Truss, has publicly taken aim at the central bank’s mandates, its independence, and how and when it sets interest rates.

That’s major news for investors and financial markets. Because they actually like stability and certainty.

And if you have any money in the markets, that matters.

Speculation over what that mandate might be… how much political involvement might come… and even which politicians might be involved is already creating uncertainty.

And we already have overwhelming uncertainty over what the Fed is doing with rates in the U.S. to supposedly fight inflation. Especially given the recent U.S. CPI numbers, which came in at 8.3%.

All this comes at a time when the U.K. faces an epic energy, inflationary, and now currency crisis. So paying attention to what the Bank of England does next is important for investors everywhere.

Because market reactions in the U.K. can give us signs of what’s to come across the pond. As I write, the Financial Times Stock Exchange 100 Index (FTSE 100) – the U.K.’s benchmark index – is down 0.93% this morning.

And as you know if you’ve been following my work recently, the cracks are already starting to show here at home.

See, Americans are in the crosshairs of a multitrillion-dollar market shock I’m calling “Enron 2.0.”

The last time something like this happened, my mom lost half of her life savings. And I don’t want the same thing to happen to you.

That’s why I’m holding an emergency briefing this Wednesday, September 28 at 8 p.m. ET.

I’ll give you the details on what’s coming. And I’ll show you a new strategy I’ve developed…

This strategy can help you prepare your portfolio – and give you the opportunity to make as much as 10x your money as this historic distortion unfolds.

So I hope you’ll join me on Wednesday.

Simply click here to save your spot. And I’ll see you there.

Regards,

Nomi Prins
Editor, Inside Wall Street with Nomi Prins

P.S. As a thank you for tuning in on Wednesday night, I’m even giving away the name of one of my favorite stocks, which I think could become a blue chip over time… along with a special report my team and I put together called The Dirty Dozen. In it, you’ll find 12 energy stocks to avoid at all costs.

Anyone who shows up to my event will get these for free – no strings attached. All I ask is that you please join me on Wednesday night at 8 p.m. ET. So don’t wait – reserve your spot right here.