The rise of heroes begins with Hong Kong movies

Over the past two hundred years, with its strong military strength, Britain's national power has reached its peak and it has become an empire on which the sun never sets.

What followed was financial hegemony.

GBP!

Just like the U.S. dollar in later generations, when Britain was an empire on which the sun never set, the British pound had always been the world's main currency, adopting the gold standard and being linked to gold.

Then two things happened that completely changed everything.

The first thing is World War I!

The second thing was the stock market crash in 1992!

These two events forced Britain to abandon the gold standard and adopt a floating exchange rate system, which also caused the pound's status in the world market to continue to decline.

Over in Britain, the important institution that ensures market stability is the Bank of Britain!

This is a powerful pillar of the British financial system. It has extremely rich market experience and extremely strong strength. No one has ever challenged the British financial system.

Even, I dare not even think about it!

But in real history, in the year 1992, Soros did something unprecedented, trying to shake the strong tree of Britain.

This time, the mountain roared and the tsunami roared, and it was earth-shattering!

But now, the person who wants to do this is Huo Wenyao, who has taken the lead in planning and winning the opportunity!

So what is the reason for being able to attack the pound?

The reasons are complex.

In November 1989, the Berlin Wall came down and Germany was reunified. Many people believed that a unified Germany would rise and prosper rapidly. This is of course true.

But the problem is that Germany will have to go through a long period of economic hardship if it wants to rebuild its country.

At this time, Britain made a fatal mistake!

That is, in 1990, Britain joined the new currency exchange rate system created by Western European countries, referred to as ERM!

This means that the currencies of Western European countries are no longer pegged to gold or the US dollar, but to each other.

To put it simply, each currency is only allowed to float within a certain exchange rate range. Once it exceeds the prescribed exchange rate floating range, the central bank of each member country will take action.

They have the responsibility to intervene in the market by buying and selling their own currency to stabilize the country's currency within the prescribed range.

The exchange rate between pounds and marks has now stabilized at 2.95 marks per pound.

But the problem is that Britain's economy is currently in recession. If it wants to join the ERM on the condition of maintaining such a high exchange rate, Britain will have to pay an extremely expensive price.

On the one hand, this will lead to Britain's dependence on Germany. When it wants to solve its own economic problems, it will become handcuffed and no longer able to act freely.

On the other hand, whether the Bank of Britain has sufficient ability to maintain such a high exchange rate is also a question.

Big...problem!

To put it bluntly, Britain doesn't have the strength and still insists on pretending to be fat.

Of course, they are not stupid either.

You must have your own considerations in doing so.

It just wants to rely on the development of the entire Western European countries to change the current situation of economic recession in the country, commonly known as"holding the thigh".

The imagination is beautiful, but the reality is cruel.

On February 7, 1992, 12 EU member states signed the Maastricht Treaty.

This is the straw that breaks the camel's back!

Because of this treaty, the currencies of some countries, such as the British pound and the Italian lira, were obviously overvalued, and the economies of these countries were all in recession.

The country’s economy simply cannot bear it!

Their only backing is Germany, which has strong economic strength.

So the question becomes... Once the markets of these countries are turbulent, will Germany, as a core country, sacrifice its own national interests to help these countries?

The answer is obvious.

Of course, when a disaster strikes, everyone should fly away. It would be good if they can take care of their own country's interests. Who the hell cares about the life and death of other countries!

The European exchange rate system will be difficult to maintain coordination due to the economic strength of each country and their respective national interests.

Once a certain"chain" in the European exchange rate system becomes loose, financial giants like Huo Wenyao and Soros will take advantage of the situation and launch an attack on these loose"chains".

Other financial giants will act like sharks that smell blood.

Currencies such as the British pound will be unable to maintain high levels due to the country's economic recession. Eventually, due to too many ill-intentioned speculators, they will be unable to withstand it until the entire system is destroyed.

In real history, the whole process is indeed the same.

First, the British economy has been in a long-term recession and has fallen into many difficulties. It is no longer possible to maintain high interest rates. The only feasible solution to stimulate the country's economic development is to lower interest rates.

But if German interest rates are not lowered and Britain unilaterally lowers interest rates, it will weaken the pound and eventually have to withdraw from the ERM!

Britain also asked the Deutsche Bundesbank to lower interest rates, but the other party decisively refused because it was worried that an interest rate cut would lead to inflation in the country and trigger a greater economic collapse.

The end result was that the pound's exchange rate against the mark continued to fall.

It turns out that 1 pound can be exchanged for 2.95 marks, which soon fell to 2.85, and then from 2.85 to 2.79. It has almost fallen to the lower limit of 2.778 stipulated by the European exchange rate system!

The short-selling giants headed by Soros have made a lot of money in this financial war!

He first shorted the British pound and made a huge profit of 1 billion.

Then he shorted Lira and Mark... followed those weak currency"chains" and attacked one after another, eventually making his total profit reach 2 billion US dollars!

And all this happened in just three months.

Of course, layout time is calculated separately.

It is worth mentioning that Soros spent a total of 10 billion US dollars shorting the pound. Naturally, not all of such a huge wealth belonged to him. In the end, he only accounted for one-third of the total profit of 2 billion US dollars.

The other two-thirds belong to the major financial groups in the lighthouse country.

From this point of view, this guy is also a working man.

Senior beaters are also beaters!

To be honest, Soros's shorting of the pound, lira and other currencies is somewhat similar to Huo Wenyao's shorting of the Japanese yen.

To put it bluntly, it is all a bubble economy.

Britain is in economic recession and cannot support such a high currency valuation. The country's economic development is in full swing, but its currency is being burned by the world and is frighteningly high.

If we use stock market terms to describe it, this is called: killing valuation!

……

……

Huo Wenyao has already killed once, and now he is gearing up and ready to kill again.

It's just that it's from Japanese yen to British pounds!

For Huo Wenyao, this was the biggest thing that he would personally handle in 1992, but now his biggest thing is nothing else but organizing his son's full moon banquet.

Yes, just three days later, Huo Lingyun's full moon banquet will be held at the Lido Hotel.

This is no longer Huo Wenyao's business, but the entire Huo Group's, and even the entire Hong Kong Olympics.

As early as a few months ago, all major media were paying attention.