George Soros Who Single-Handedly Broke British Pound in 92 Warns UK Against EU Exit (By Alluding to 92) —>
Guest article by Barry Secrest | Originally posted on Conservative Refocus
Remember that old saying “The Devil Made Me Do It?”
Now, In the irony of all ironies, globalist henchman George Soros, who broke the British pound in 1992 and profited by over a billion dollars in that era’s Black Friday, is now warning the United Kingdom not to exit the EU, or else.
While it’s a granted that an EU exit would truly spoil-up Soros plans for a New World Order and a One-World government, Soros, as the brilliant demoniacal investor that he is, apparently thinks everyone has mostly forgotten the actual history associated with the now infamous Black Friday.
Millions of British families saw their life-holdings evaporate, and all because Soros, as a sordid Left-Wing Capitalist, was willing to do anything, and even beyond, to make a profit.
Indeed, most Brits blame Soros for the 1992 financial meltdown, when through a series of transactions, Soros brought the UK economy to its knees, and all for a massive profit.
Even more ironic might be the fact that Soros, now, appears to be crying crocodile tears in reminding the Brits that a replay for 2016 might be worse than 1992 while leaving out what actually happened in 1992, in that it was Soros, himself, who single-handedly machinated the entire event, in the first place.
But first, here’s what’s being reporting of Soros, today.
“The world’s most famous currency speculator has warned that a vote on Thursday for Britain to leave the EU would trigger a bigger and more damaging fall for sterling than the day he forced Britain out of the Exchange Rate Mechanism almost a quarter of a century ago.
George Soros, writing in the Guardian, said a Brexit vote would spark a Black Friday for the UK, but the devaluation of sterling would bring none of the benefits to the economy that it enjoyed after it dropped out of the ERM on 16 September 1992 – Black Wednesday.
He said that, as in 1992, there would be big financial gains for speculators who had bet on the UK leaving the EU but that such an outcome would leave “most voters considerably poorer.”
However, what Soros left out of his column, was his own starring if not, dubious role in the 1992 meltdown.
At the website Price-economics, we find an expert account, in summary, of how Soros broke the pound:
“In 1992, George Soros brought the Bank of England to its knees. In the process, he pocketed over a billion dollars. Making a billion dollars is by all accounts pretty cool. But demolishing the monetary system of Great Britain in a single day with an elegantly constructed bet against its currency? That’s the stuff of legends.
George Soros, at the time, was 62 years old and led the Quantum Fund, a hedge fund he founded in 1970 that bet on macroeconomic trends. Soros was already a very rich guy, but he wasn’t iconically rich, or the public figure he is today.
Since August, Soros and his Quantum Fund had been building a $1.5 billion position to bet that the price of Sterling would fall.
However, instead of slowly building up a short position against the sterling, the Quantum Fund could short sell sterling on an unprecedented scale today. Doing so would not only help hasten the tumble of the sterling but also increase the fund’s profit.
It was this decision to “go for the jugular” that netted Soros’s firm over a billion dollars, toppled the Bank of England’s currency regime, and ultimately led to the disgrace of the Prime Minister. It also cost the British taxpayers billions.
Soros did the nasty deed by playing the exchange rates and shorting the pound.
And so that morning [ the day of the meltdown] Soros and his fund increased their short position against the British pound from $1.5 to $10 billion. It was the perfect bet with a mitigated downside and a limitless upside.
As Europe slept, Soros borrowed and sold pounds from anyone that he could. The Quantum Fund’s position exceeded $10 billion shorting the pound. Other hedge funds got wind of the trade (and the report from the Bundesbank) and started following suit, also borrowing and selling pounds.
At 7:30 PM that night, Lamont held a news conference to announce that Britain would be exiting the ERM and floating its currency on the market. Soros and the speculators won.
British financial history now refers to September 17, 1992, as “Black Wednesday;” George Soros, however, probably calls it something like “Awesome Wednesday.” Once Great Britain floated its currency, the pound fell 15% versus the Deutschmark and 25% versus the US Dollar.”
“Sterling is almost certain to fall steeply and quickly if leave wins the referendum,” Soros said. “I would expect this devaluation to be bigger and also more disruptive than the 15% devaluation that occurred in September 1992, when I was fortunate enough to make a substantial profit for my hedge fund investors at the expense of the Bank of England and the British government.”
In the months following departure from the ERM, interest rates were cut from 10% to 5.5% – easing the financial burdens facing consumers and businesses. However, with official borrowing costs at 0.5%, Soros said rates were already at the lowest level consistent with the stability of British banks and meant there was little the Bank of England could do in the event that Brexit led to a recession.
A vote for leave would force the pound to slide towards parity with the euro – “a method of joining the euro that nobody in Britain would want” – and plunge more than in September 1992 when his $10bn (£6.9bn) bet against the pound broke the Bank of England.
“A vote to leave could see the week end with a Black Friday and serious consequences for ordinary people,” Soros said.”
Soros said that speculators – dubbed in the 1960s the Gnomes of Zurich by Harold Wilson – had made large profits at Britain’s expense at the time of the 1967 devaluation. “Today there are speculative forces in the markets much bigger and more powerful. And they will be eager to exploit any miscalculations by the British government or British voters. A vote for Brexit will make some people very rich – but most voters considerably poorer,” Soros said.
Not all economists agree with Soros’s assertion that a rate cut will not be possible: economists at JP Morgan are among those forecasting a cut to zero in August from the historic low of 0.5%.”
So, has Soros turned over a new leaf?
What is probably happening, however, is that Soros truly wants his Luciferian New World Order to remain intact, especially after so much work and investment he’s undertaken in fulminating its creation.
In fact, Soros may even now be emotionally invested in the thing, perhaps as an uncharacteristic personal sacrifice to whatever demigod he worships, aside from himself.
But let us all remember that it was Soros who was haranguing EU leaders to accept all of those Islamic refugees only months before he began warning that the EU may suffer a colossal financial collapse for taking in all of those refugees.
We can only infer that Soros, through his changing positions and being the forever heartless dragon that he is, has decided to once again hedge his financial position, for a looming massive profit.
It’s what he does.
Note: Notable within this referenced article from the UK Guardian, is the fact that at no point, mystifyingly, does this massive UK news vendor bring up Soros’ singular role in the 1992 Black Friday meltdown, of Great Britain.