Concerns Over Market Volatility and Public Confidence
A former senior analyst at the Bank of England has advised Governor Andrew Bailey to prepare contingency plans for potential financial market turmoil that could arise from the official confirmation of extraterrestrial life. The analyst warns that such an announcement might lead to significant asset repricing, a shift towards safe-haven assets, and a potential collapse of public confidence in government-backed currencies.
Helen McCaw, who previously held a position in financial security at the Bank of England, communicated these concerns in a letter to Governor Bailey. In her correspondence, she outlined potential scenarios that could unfold if alien life were to be confirmed.
McCaw expressed apprehension about "extreme price volatility in financial markets due to catastrophising or euphoria, and a collapse in confidence if market participants feel uncertain on how to price assets using any of the familiar methods."
McCaw suggested that investors might seek refuge in hard assets, including gold, precious metals, and certain government bonds.
However, she also posited that if any disclosure involved advanced space technology, gold and other precious metals could potentially lose their scarcity value due to anticipated increased availability from extraterrestrial sources.
Furthermore, McCaw argued that crypto assets could see benefits amidst such turmoil. She wrote, "There might be a rush to digital currencies such as bitcoin, which may prove appealing if people question the legitimacy of government and lose trust in government-backed assets."
She also raised the possibility of bank failures and payment system collapses, which could, in turn, lead to civil unrest.
The Significance of Trust in Institutions
This warning comes at a time when the U.S. Congress has conducted multiple high-profile hearings concerning unidentified aerial phenomena, although no definitive evidence of extraterrestrial origin has yet been presented.
McCaw's primary concern centers on the potential for confirmation of alien life to profoundly erode public trust in governments and established financial institutions.
The uncertainty that could follow, she contends, might make decentralized assets like Bitcoin significantly more attractive to investors looking for alternatives outside of state control.