Magnus
Diamond Member
- Jun 22, 2020
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Nope. Fake news. Soros didn't destroy the UK. He actually made it's economy better.Ask the UK about Soros, he single handily nearly destroyed their economy via shorting the Pound back in '92.
He started the snowball effect.
I'm not even bringing in religion, it had nothing to do what that asshole did.
George Soros Taught Us: The World Can Survive a Currency Union Breakup
When the U.K. pulled out of Europe's Exchange Rate Mechanism in the early 1990s, some predicted disaster, but that "Black Wednesday" actually brought brighter times to the British Isles.
The same story might play out when the euro as we know it inevitably falls apart, despite George Soros's predictions to the contrary.
Soros would know a little something about the disintegration of a currency union: Most argue he was responsible for the collapse of the ERM when he "broke the Bank of England" and took home a handy $1 billion by betting against the pound.
Exchange rate mechanisms, currency unions and gold standards are by design bound to fail. The list is long: the Latin Monetary Union, the Scandinavian Monetary Union, and Bretton Woods (not a currency union, but a fixed exchange rate mechanism) have all failed miserably. But the world's financial systems survived.
The Bank of England found this out the hard way: On Sept. 16, 1992, the bank's chief dealer, Jim Trott, looked over his shoulder for support from the Bundesbank. But there was none. The Bank of England was on its own.
At 19:00 GMT, after raising interest rates from 10% to 12% and then to 15% in an attempt to defend the pound and remain in the ERM currency union, then-Chancellor of the Exchequer of England Baron Norman Lamont of Lerwick pulled sterling from the union.
Then, as now, pundits predicted a collapsed currency union would also lead to an economic collapse. What actually happened in the U.K. was quite the opposite: In the five years that followed "Black Wednesday," growth took hold, unemployment fell and inflation slowed. A weaker currency and falling global interest rates aided the British economy.
There is one bright spot among history's failed currency unions: The best-known one -- the one that actually worked -- is the U.S. dollar, established by the National Currency Act of 1863.
This mechanism survives because of the federal government's ability to raise taxes and transfer wealth within the union.
No currency union can survive without such a fiscal union (a fiscal union the euro zone lacks). Eventually, economic disparities create civil strife: Either by pitch fork or ballot, the union falters.
When it comes to today's faltering currency union, the best Europe can hope for is to find a financially acceptable way for weaker countries, such as Greece, to exit without too much pain before the locals pick up the torches and storm the castle.
George Soros Taught Us: The World Can Survive a Currency Union Breakup
When the U.K. pulled out of Europe's Exchange Rate Mechanism in the early 1990s, some predicted disaster, but that "Black Wednesday" actually brought brighter times to the British Isles.
www.wsj.com