MTL - America’s Big Hero-v2 Chapter 541 : Pound Crash

Why did you help the person you hit?

This kind of problem is universal, and it can be applied to any industry in the world.

If the Italian lira is fine, why did the Bundesbank break the usual practice of cutting interest rates?

It is precisely because the German central bank's interest rate cuts will give confidence to the lira, causing the lira to actually rise, so the lira collapsed! This operation, the British are stupid!

On April 28, the short-selling army led by Soros, who had a mouth full of blood, rushed towards the pound crazily. Soros has the longest layout on the pound, and it took him 2 years!

In November 1989, Druckenmiller, Soros' partner, began to do long marks and short sterling, while another partner, Scott Besser, had been researching and shorting the stocks of British real estate companies.

Yes, the old guy is the real financial expert. His goals are much sharper than Sean's. It doesn't matter if Sean is present or not. Sean is the one who forcibly gets into the car.

Of course, Sean provided "safety" support, and the proceeds had to be distributed anyway, and Sean was a better choice. …

"I need to know the exact dollar reserves held by the British government?" Soros called Sean. "Wait for me for 10 minutes." Sean called Shen Bi directly after hanging up the phone.

Shen Bi is no longer at HSBC, and many old subordinates followed him into the Asian Investment Bank, but this does not mean that he really has no resources at HSBC.

If Shen Bi went completely silent after leaving HSBC, then he would have no friends, but the problem is that he didn't go silent, instead he had a second life.

Here is a brief introduction to HSBC Bank.

HSBC was formerly known as The Hong Kong and Shanghai Banking Corporation, and before the Sino-British negotiations, it was the Hong Kong and Shanghai Banking Corporation.

After the negotiation started, HSBC felt that the future of Hong Kong Island was uncertain but it was unwilling to give up the market of Hong Kong Island and the cornucopia of Hong Kong dollar issuance qualifications, so it established HSBC Holdings Limited to transfer assets. HSBC Holdings was headquartered in London. .

Since then, HSBC's business has been gradually transferred from HSBC Hong Kong to HSBC UK.

Another point is that British taxation is much heavier than that of Hong Kong Island, so HSBC Group needs to pay about 400 million pounds in taxes to the British government every year.

It has paid a lot, but it has also received support and endorsement from the British government. This is also one of the reasons why HSBC Hong Kong Island dared to follow the North to fight against it. The North has been unable to withdraw the Hong Kong dollar issuance rights from HSBC.

Quite a complicated behind-the-scenes transaction.

Closer to home, 8 minutes later, Soros got the exact figure. The British government still had 44 billion US dollars of foreign exchange reserves. 100 million US dollars will come back, and it will be credited soon.

Sure enough, on the day Italy announced its abandonment of the fixed exchange rate and the collapse of the lira, British Prime Minister John Major and Finance Minister Lamont held a press conference at which they announced three benefits.

The Bank of England has successfully resisted the shock to the pound since February;

On April 19, the Bank of England raised $14 billion to defend the pound. The Bundesbank has cut interest rates by 0.25%.

Monday, April 23.

As soon as the market opened, the Bank of England spent US$700 million to buy sterling, which can be described as menacing, hoping to scare off Soros and others.

Coupled with the benefits of Germany's interest rate cuts, the pound began to appreciate with a small intervention.

If anyone in the foreign exchange market has increased leverage by hundreds of times at this time, then congratulations, you can go to the rooftop and line up.

Major and Lamont were greatly relieved by the slight rise in the pound as expected, and their hearts were relieved, but these export companies in the British business community almost went berserk.

Is this the appreciation of the pound, this is **** digging their graves!

The company couldn't survive, and my own country shot me in the back.

However, the hungry wolves of Wall Street led by Soros did not waver at all. This is the same feeling as watching Germany cut interest rates.

With such a big handwriting, press

No one knows better than them how much should be promoted according to normal logic, but the reality is that the increase is lower than normal. What does this mean?

Throw it, throw it hard!

After planning for more than 2 months, Soros and other Wall Street hungry wolves made transfers through several banks such as Trustees, and borrowed a huge amount of British pounds from the Bank of Scotland and HSBC, for today!

If you have food in your hand, don't panic in your heart, and have enough ammunition, just hit me hard!

While selling the pound in their hands and letting the Bank of England take over, they bought a large amount of German marks to allow the mark to continue to appreciate. throw! throw! throw!

purchase! purchase! purchase!

After the market opened, the two sides began to fight in the foreign exchange market.

The UK is not an Italian, old-fashioned empire with a developed financial industry. There is no need to pay attention to step-by-step methods when dealing with them, just smash them to death.

Otherwise, the British might really be able to hold on!

In one day, Soros and his gang dumped $3 billion worth of British pounds!

More than 3 billion, with leverage between 50 and 200 times, affecting a market close to 300 billion pounds, the pound began to fluctuate wildly. As soon as Lamont changed his optimistic attitude at the beginning of the market, it would be burnt out. In one day, they shot close to $4 billion in bullets.

Tuesday, April 24.

The two sides continued yesterday's killing in the foreign exchange market.

In one day, the real money invested by both parties in the foreign exchange market was as high as 15 billion US dollars! You attack and I defend, repeatedly competing for high and low, killing the foreign exchange market in a **** storm.

In the evening, Lamont received a call from the Spanish finance minister, and the only thing he could say was, "It's terrible!"

That night, Lamont called a meeting of finance officials and Bank of England Governor Robin Leigh Pemberton, and the two sides agreed to start feeling more positive about the pound from Wednesday's opening if it continued to fall tomorrow.

If it still doesn't work, the sequel raises the rate.

Having decided on a strategy, the exhausted Lamont was about to announce the end of the meeting and go back to rest to prepare for tomorrow's battle, when the door of the meeting room was knocked open.

Everyone looked up and saw Lamont's secretary stumbling in.

"You're crazy!" Lamont, who was already so upset that he couldn't get out of his stomach, seemed to be ignited, and cursed loudly, "Get out, you impolite bastard!"

The secretary's face turned blue and red after being scolded, she lowered her head, gritted her teeth fiercely, and her mouth smelled of rust.

A few seconds later, the secretary stood up, pursed her lips, bent slightly, and retreated respectfully, as if her steps were measured.

"Dong dong dong" rhythmic knock on the door sounded. "Come in!" Lamont said coldly.

The secretary walked in, closed the door gently, then turned around and said with a slight bow, "Sir, there is some news."

"Speak." Lamont half-closed his eyes. It's not that he was pretending. The London foreign exchange market was closed, and the group of Wall Street hungry wolves couldn't use any means. Everything will be decided tomorrow.

He had heard enough bad news today that he didn't believe anything worse could scare him.

“A piece of news has just come from Germany that Schlesinger, president of the Bundesbank, has been interviewed by The Wall Street Journal, The Times, The Daily Telegraph, The Mirror, The Guardian and Handelsblatt.” The secretary's voice was frustrating, with a London accent reminiscent of an aristocrat.

Ok? Lamont sat up straight, opened his half-closed eyes, and turned to stare at the secretary, feeling a little thumping in his heart. No way?

No way!

What the **** are you going to say about Schlesinger's one sentence that caused Lila to collapse?

The heartbeat speed increased suddenly, and Lamont's lips trembled slightly, don't come here!

"Mr. Schlesinger said that he thought it would be better to make a broad adjustment to the exchange rate of European currencies than to make a separate adjustment to the lira." The secretary's tone was calm and unhurried. What is a British housekeeper?

Lamont's pupils dilated instantly, and he stood up suddenly, so fast that he brought the chair down and made a "bang".

As if he didn't realize it, Lamont's expression was distorted, and he raised his hand tremblingly. Before he could say a word, his body shook, and he fell to the ground with a bang.

"Mr. Lamont!" "Mr. Lamont!"

The secretary exclaimed and rushed over. When she lowered her head, the corner of her mouth curled up in a sneering arc. Damn Falk, are you better than me, ha.

It's not that the secretary disrespected Lamont, the finance minister. In a nutshell, who hasn't scolded the boss. Of course, the secretary also noticed it. In Schlesinger's words, Lamont was about to die.

After a burst of beating, someone hurried out to call for a doctor, but luckily it was just a momentary rush, nothing serious.

Struggling to sit up, Lamont stared at Bank of England Governor Robin Leigh Pemberton, "Call, call Schlesinger, he's crazy, he's crazy, he's going to take the whole of Europe down!"

"Call the Bundesbank and ask them to announce that the press release is unauthorized and that it is completely fabricated."

Robin Leigh Pemberton opened his mouth. He didn't think he could change the minds of the Germans, nor did he think Britain had the ability to make the Germans subdued.

Besides, with so many newspapers, don't Wall Streeters have their own channels? That old guy Murdoch is now an American!

Of course, if you know what you know, you still have to work hard and show it to everyone.

ERM rules, the Bank of England must buy pounds at the lower limit of the floating range (2.7780), but this rule is only valid during the opening hours of London.

Sean also didn't know if Schlesinger was lowered, so how could he say such a thing. Is it really upholding justice, or revenge on the British, or secretly voted for the Americans.

Even between China and Japan, there is no... ahem.

Anyway, Murdoch told Sean that's what Schlesinger said. I can only say, admire!

Wednesday, April 25, 8:30 London time, 16:30 BJ time.

As soon as the market opened in London, Quantum Fund invested all the funds in its hands as soon as the market opened, including the 3 billion invested by Sean, and temporarily borrowed 6 billion from Sean Bank, and the sale was a big empty of 10 billion. one.

Borrowing is different from Xiao En's investment. It only needs to pay the interest on lending, which is a normal financial operation, and you can change to any bank.

With a short order of US$10 billion, the British pound has fallen below the lower limit of the ERM range in an instant!

The Bank of England immediately took over the two orders and invested 1.2 billion U.S. dollars within one minute. It originally thought that it could be pulled back to the warning line of 2.7780, but it didn't work.

08:30 to 08:40.

The Bank of England pumped in another $800 million, but the pound remained unchanged.

In just 10 minutes, 2 billion US dollars evaporated, and Lamont was already frightened, and the strong wind was not enough to describe the speed of the loss. Even a tornado is not capable of blowing away 20 tons of dollars in 10 minutes!

09:00.

Lamont hurriedly called Prime Minister Major, "Intervention failed, we must raise interest rates to protect the pound, or we will be kicked out of the European Exchange Rate Mechanism!".

After a while of silence, Major refused to raise interest rates, and the reason was very good. The UK was already in recession, and the domestic pressure exerted tremendous pressure on him.

10:30.

The hungry wolves of Wall Street continued to step up their offensive, and Lamont could not get support from Major, so he could only continue to invest in dollars to take over.

Blood flowed like a river!

Lamont called Major again, with a fierce tone, "Either raise interest rates or give up the pound, your choice!" Major: "....""

who do you think You Are? Do you think I will compromise? You are wrong! Yes I will....

At 11:30, Major held a press conference and announced an interest rate hike of 200BP, from 10% to 12%.

What is the concept of raising interest rates by 2% at a time? After 2008, the adjustment range of interest rate hikes and cuts by central banks of various countries is 0.25% each time.

What's up with the pound for such a big rate hike

reaction? Answer: Nothing happens!

Sterling continued to fall.

Lamont has gone crazy. The newspapers and media outside UU Reading www.uukanshu.com are all criticizing him, laughing at him, and attacking him. As long as Lamont wants some face, he should die!

But he doesn't want to.

At 12:00, in addition to crazily cursing the Germans and the hungry wolves of Wall Street, his solution is to pull Major to raise the interest rate by 3%, raising the interest rate to 15%.

The boss fucks, most of the time it's not the people below who are jealous, it's the boss who really sucks!

How will the pound react this time?

Still nothing happens!

The whole world, including the British, knows that the Bank of England should cut interest rates and devalue the pound. This is the only way to save the UK.

But the British Prime Minister just wants to raise interest rates and let the pound appreciate.

Human beings can't even imagine how Major and his prime minister's team poured so much seawater into their brains.

To say that they are *** is a compliment to them!

The market isn't what you want it to be, except... neither do they.

The market expects that the pound can only depreciate, so no matter how you raise interest rates or how many pounds you buy, it will not be able to change this situation. At 5:00 p.m., Major called an emergency meeting.

At the meeting, Minister of the Exchequer Lamont, Minister of Foreign Affairs Hurd, Chairman of the Trade Bureau Heseltine, Secretary of the Interior Clark, all unanimously decided to withdraw from the European Exchange Rate Mechanism.

It's as if they quit voluntarily instead of being kicked out. Of course, as long as they think so, no one else can do anything about it.

At 19:30, Lamont held a press conference, announcing that the UK would withdraw from the ERM and implement a floating exchange rate system. Sterling is down 15% against the Deutsche mark and 25% against the dollar.

Soros...Sean, win!

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