Not much. A bunch of rich, connected fools, who believed David Cameron, bet on the wrong horse and lost $2.08 TRILLION; everything is going to cost a few percent more in the UK, but life goes on.
The alternative is that every global economy which holds US Treasury notes will fail at the same time.
It doesn’t matter because currency is not backed by gold anymore. TRILLIONS of dollars lost in the stock market are meaningless so long as people keep trusting fiat currency. And they have no choice really, because that’s all there is. Gold and silver are VALUED in FIAT currency, but not BACKED by it. And not everyone has PM for barter.
Then, when you try to trade the ounce of gold you think is worth $1,300 – assuming it isn’t counterfeit – you’ll get $35, or maybe a chicken and that’s assuming anyone wants to trade their chicken for a gold coin instead of a bucket of beer…For the first weeks and months, people will want to spend worthless paper for tangibles if they can and the people who have PM will hoard it.
I don’t know why no one grasps the simple fact that if fiat currency loses all it’s value, there is nothing to measure precious metal against and it’s worth nothing. Or, rather, it’s worth what I’m willing to trade for it and no more – I can’t eat a bag of gold, so I don’t want any during an epochal global hyperinflation/extinction/societal meltdown event. You can carry your imaginary wealth around until someone kills you for it and then they can carry it around until someone kills them for it.
And you WILL be carrying it around, because your running water and sewage systems won’t work any more and there ain’t no electricity or food or water. Except at my house – but I won’t trade it for gold.
Now…five or ten years down the road, after the majority of the anthropogenic extinction event and hyperinflation and the wars and pandemics end, PM will become money again – because there will (hopefully) be enough PM available for everyone who is still alive to have some and use it for trade. The people who still have their bags of gold will be wealthy. It will be like being wealthy in post WWII Hiroshima, though.
The next things to appear will be banks, which loan their deposited gold so people can by seeds and livestock and grow food that other people need. Debt, in the form of contracts, mortgages and services in a village/barter/frontier economy, is money. Understand: Debt is money. Debt is money. It’s supposed to be 100% backed by gold on deposit – until the banks begin to loan more gold, in the form of paper guarantees, than they have on deposit in order to make more interest.
Then they borrow from each other overnight so the books are straight. And then they buy the politicians and bank regulators. They will. They always have. EVERY fiat currency in the history of the world has hyperinflated and failed. All of them. 100%. No exceptions.
For every ounce of gold in the world today, you can safely figure that at least three people believe they own that same ounce. All have a valid legal claim. At least two and maybe all three of them were sold encumbered gold, and an insurance policy from some third-party investment bank that guarantees they will get delivery. I’m not going to mention that much, except it works when a third party sells insurance guaranteeing delivery of something it doesn’t own and can’t get.
We are awaiting the loss of confidence in the value of this fiat paper. Then the terrible cycle, repeated throughout all history begins again. BREXIT may be the catalyst of change, or there may be something else. But it’s close. It’s so very close.