American TV series

Chapter 535 The collapse of the pound

Why did you help the person you bumped into if you didn't hit him?

This problem is universal and applies to any industry around the world.

If there is no problem with the Italian lira, why would the Bundesbank break its long-stated practice of cutting interest rates?

It was precisely because the Bundesbank's interest rate cut would give the lira confidence and cause the lira to actually rise. Therefore, the lira collapsed!

This operation made the British stupid!

On April 28, the short-selling army led by Soros, who was full of blood, rushed towards the pound frantically.

Soros has been planning on the pound for the longest time, and it took him 2 years!

In November 1989, Druckenmiller, a partner of Soros, began to go long on the Mark and short on the pound, 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. He will take action regardless of Sean's presence or absence. Sean is the one who forces himself into the car.

Of course, Sean provided 'safety' support. Anyway, if you have to share the profits, Sean is the better choice.

…

"I need to know the exact dollar reserves held by the British government?" Soros called Sean.

Sean didn't know if Schlesinger had been beheaded or how he could say such a thing.

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

Rivers of blood!

Lamont called Major again and said in a fierce tone, "Either raise interest rates or give up the pound, your choice!"

At 5:00 p.m., Major held an emergency meeting.

If that still doesn't work, then continue to raise the interest rate.

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

The secretary exclaimed and rushed over. When he lowered his head, there was a mocking arc on the corner of his mouth. Damn it, are you better than me? Haha.

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

The boss is stupid. Most of the time, it’s not the people below who are jealous, but the boss who is really stupid!

How has the pound reacted this time?

If Shen Bi completely fell silent after leaving HSBC, then he would have no friends. But the problem is, instead of falling silent, he had a second spring.

Lamont has gone crazy, and newspapers and media outside are all criticizing him, ridiculing him, and attacking him.

If anyone in the foreign exchange market increases leverage by hundreds of times at this time, congratulations, you can go to the rooftop to queue up.

"You're crazy!" Lamont, who was already very upset and unable to express his anger, seemed to have been ignited and cursed loudly and loudly: "Get out of here, you impolite bastard!"

All I can say is, I admire you!

After a period of silence, Major refused to raise interest rates for a very good reason. Britain was already in recession and domestic pressure was exerted on him.

After the negotiations began, HSBC felt that the future of Hong Kong Island was unclear but 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 Co., Ltd. to transfer assets. The headquarters of HSBC Holdings is in London. So far, there is HSBC UK.

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No way?

No way!

Schlesinger's words caused the lira to collapse. What the hell are you going to say?

The heart rate suddenly increased, and Lamont's lips trembled slightly, "Don't come over!"

"Mr. Schlesinger said that he believed that a broad adjustment of the European currency exchange rate would be better than a separate adjustment of the lira." The secretary's tone was calm and unhurried. What is a British butler!

Lamont's pupils dilated instantly and he stood up suddenly so fast that the chair fell over with a 'bang' sound.

That night, Lamont convened a meeting with finance officials and Bank of England Governor Robin Leigh Pemberton, and the two agreed to start a more positive feeling for the pound from the opening on Wednesday if the fall continued tomorrow.

If Lamont wants any face, he should die!

But he doesn't want it.

Tuesday, April 24th.

In one day, both parties invested US$15 billion in real money into the foreign exchange market!

You attack and we defend, fighting for the top and bottom again and again, and the foreign exchange market is full of bloodshed.

Throw! Throw! Throw!

Buy! Buy! Buy!

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

Lamont seemed unaware, his 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' sound.

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

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

With a short order of US$10 billion, the pound instantly fell below the lower limit of the ERM range!

The hungry wolves on Wall Street continued to increase their offensive. Lamont was unable to get support from Major and could only continue to invest US dollars to take over.

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

At 12:00, in addition to cursing the Germans and the hungry wolves on Wall Street, his solution was to get Major to raise interest rates by another 3%, bringing the interest rate to 15%.

Lamont changed his optimistic attitude at the opening of the market, which made them desperate. In one day, they fired nearly $4 billion in bullets.

How will the pound react to such a substantial interest rate hike?

Answer: No response!

"Mr. Lamont!"

The Bank of England invested another US$800 million, but the pound remained unchanged.

It's as if they quit on their own initiative instead of being kicked out.

According to 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 London opening hours.

10:30 minutes.

Sure enough, Italy announced that it would abandon its fixed exchange rate and on the day the lira collapsed, British Prime Minister John Major and Finance Minister Lamont held a press conference, at which they announced three positive things.

Borrowing is different from Sean's investment. It only requires payment of borrowing interest. It is a normal financial operation and can be changed to any bank.

It’s not that the secretary has no respect for Lamont, the Treasury Secretary. In one sentence, who hasn’t called the boss a fool?

Not even a tornado can blow away 20 tons of U.S. dollars in 10 minutes!

09:00 minutes.

After a few seconds, the secretary stood up, pursed his lips, bent slightly, and stepped out respectfully, as if his steps had been measured.

When the market opened in London, Quantum Fund invested all the funds in its hands as soon as the market opened. In addition to the 3 billion invested by Sean, it temporarily borrowed 6 billion from Sean's bank and invested it. The move was 10 billion short.

one.

who do you think You Are?

It's a very complicated transaction behind the scenes.

In the evening, Lamont received a call from the Spanish Finance Minister and said only one sentence, "It's terrible!"

Yes I will……

Coupled with the benefit of Germany's interest rate cut, the pound began to appreciate with just a small intervention.

Is this the appreciation of the pound? This is digging their ancestral graves!

Was he really upholding justice, was he taking revenge on the British, or was he secretly defecting to the Americans?

What is the concept of raising interest rates by 2% at a time? After 2008, central banks in various countries raised interest rates and cut interest rates by 0.25% each time.

Major: "..."

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

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

"Come in!" Lamont said coldly.

After making such a big move, no one knows better than them how much they should be promoted according to normal logic. However, 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 wolves transferred huge amounts of pounds from the Bank of Scotland and HSBC through several banks such as Bankers Trust, just for today!

Another point is that taxes in the UK are much heavier than those in Hong Kong. As a result, HSBC Group needs to pay about 400 million pounds in taxes to the British government every year.

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

On April 19, the Bank of England raised $14 billion to defend the pound.

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

Of course, as long as they think so, there is nothing others can do.

HSBC was formerly known as The Hongkong and Shanghai Banking Corporation. Before the Sino-British negotiations, it was the Hongkong and Shanghai Banking Corporation.

But the Wall Street wolves headed by Soros have not wavered at all. This is the same feeling as watching Germany cut interest rates.

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

Having decided on his strategy, Lamont, who was exhausted both physically and mentally, was about to announce the end of the meeting and go back to rest in order to prepare for tomorrow's battle, when the door to the conference room was knocked open.

"Mr. Lamont!"

He had heard enough bad news today, and he didn't believe there was any worse news that could scare him.

Anyway, Murdoch told Sean that's what Schlesinger said.

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

At the meeting, Finance Minister Lamont, Foreign Secretary Hurd, Trade Bureau Chairman Heseltine, and Home Secretary Clark unanimously decided to withdraw from the European Exchange Rate Mechanism.

More than 3 billion, with leverage ranging from 50 to 200 times, affecting a market close to 300 billion pounds, and the pound began to fluctuate wildly.

Two billion U.S. dollars evaporated in just 10 minutes. Lamont was frightened. The strong wind could not describe the speed of the loss.

Still no response!

"Wait for me for 10 minutes." Sean called Shen Bi directly after hanging up the phone.

The secretary's face turned green and red after being scolded. He lowered his head and gritted his teeth. There was a taste of rust in his mouth.

Calling them idiots is a compliment to them!

The market is not what you want it to be, except... neither can they.

While selling the pounds in hand to let the Bank of England take over, it also bought a large amount of German marks to allow the mark to continue to appreciate.

The slight rise in the pound as expected made Major and Lamont relieved and relieved, but the export companies in the British business community almost went crazy.

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

Human beings simply cannot imagine how Major and his team of prime ministers poured so much seawater into their brains.

08:30 to 08:40.

There was a burst of beatings, and someone hurriedly ran out to call the doctor. Fortunately, it was just a temporary heat attack, nothing serious.

The Bundesbank has cut interest rates by 0.25%.

Huh? Lamont sat up straight and opened his half-closed eyes. He turned to stare at the secretary, feeling a little nervous.

"Say." Lamont half-closed his eyes. It wasn't that he was pretending. The London foreign exchange market was closed, and those Wall Street wolves couldn't use any means even if they had any means. Everything would be revealed tomorrow.

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

As soon as the market opened, the Bank of England spent US$700 million to buy pounds. It was quite aggressive, hoping to scare off Soros and others.

Do you think I will compromise?

You are wrong!

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.

Of course, the secretary also saw it. Schlesinger's words meant that Lamont was going to die.

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

The company was already in trouble, and our country shot us in the back.

Britain is not interested in making profits. It is a long-established empire and has a developed financial industry. There is no need to pay attention to step by step in dealing with them. Just smash them to death and that's it.

Monday, April 23rd.

The Bank of England immediately stepped in and invested US$1.2 billion within 1 minute. It originally thought it could bring it back to the warning line of 2.7780, but it had no effect.

It paid a lot, but it also received support and endorsement from the British government. This is also the reason why Hong Kong Island HSBC dared to follow the North and one of the reasons why the North has been unable to take back the right to issue Hong Kong dollars from HSBC.

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

The market expects that the pound can only depreciate, so no matter how much interest rates are raised or how many pounds are bought, it cannot change this situation.

"News just came from Germany. President Schlesinger of the Bundesbank was interviewed by the Wall Street Journal, The Times, The Daily Telegraph, Mirror, The Guardian and Handelsblatt."

The secretary's voice was full of twists and turns, and she used a London accent that sounded aristocratic.

The pound continues to fall.

The secretary walked in, closed the door gently, then turned around and bowed slightly and said: "Sir, there is new news."

Here is a brief introduction to HSBC.

"Dong dong dong" a rhythmic knock on the door sounded.

Closer to home, 8 minutes later, Soros got the accurate figure. The British government still had 44 billion US dollars in foreign exchange reserves. However, on April 19, seeing the miserable situation of the Italians, the Bank of England once again raised 140 billion US dollars from the outside world.

The US$100 million will arrive in your account soon.

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

"Call the Bundesbank and ask them to announce that the press release was unauthorized and that the contents are entirely fabricated."

At 19:30, Lamont held a press conference to announce that the UK would withdraw from the ERM and implement a floating exchange rate system.

The pound fell 15% against the German mark and 25% against the dollar.

Soros…

Sean, win!!

(End of chapter)