Rebirth of the Tech Madman

At this stage, in addition to No. 10 Downing Street, British Prime Minister John Major also has a temporary residence in the Admiralty Building.

It was not that he was extravagant, but because on February 7 last year, 10 Downing Street was hit by the worst attack in history-the Irish Republic ~ The Peace Army parked a van equipped with mortars to the British government. ~ Baiting, where the central office is located, resulted in an explosion in the backyard of No. 10 Downing Street. In addition to shattering all the windows of the cabinet meeting room, it also left a large hole.

At the time of the incident, John Major was holding a cabinet meeting in the cabinet meeting room. He was one step closer to death than his predecessor, Margaret Thatcher, who had a similar experience.

Therefore, the British Prime Minister, who had a false alarm, was forced to move to the Admiralty Building for temporary residence after the incident, so that the maintenance works of No. 10 Downing Street could start.

Since John Major is not at 10 Downing Street, he should be in the Admiralty Building.

Thinking of this, Norman Lamont brought a team of consultants and went straight to the Admiralty Building in order to convince the other party that there should be no such delay. Withdrawing from the European exchange rate mechanism is the only way out.

After arriving at the Admiralty Building, Norman Lamont waited another 15 minutes before seeing John Major. His Excellency, the Prime Minister, really had a demeanor. At this time, he was still in a state of chaos and calm. He did not put Britain in the capital at all. The heavy losses in the market are serious.

Not surprisingly, the starting point of John Major's consideration of issues is politics. He first asked whether Britain has room for further financial diplomacy with Germany.

"It is impossible for the Germans to consider our situation, and time is too late to negotiate." Norman Lamont smiled bitterly and shook his head. Ten billion U.S. dollars was handed over to speculators on the opposite side of the capital market. According to this trend, the UK's foreign exchange reserves will be exhausted without waiting for the outcome of negotiations with the Germans."

After listening to this analysis, John Major couldn't sit still. "The other ministers will be here soon. You can discuss your views on the unilateral withdrawal from the European exchange rate mechanism from different angles."

Norman Lamont understood that his boss was afraid of taking responsibility. This brought in other cabinet members to jointly assume political and governance risks.

The process of the next meeting was really tortuous, and the ministers were talking about whether the United Kingdom could do it, and while withdrawing from the European exchange rate mechanism, other European partners should not be offended? If you really withdraw from the European exchange rate mechanism, do you need to take the blame and resign?

Time went by like this one minute after another, until one of the ministers said, "We must unite, advance and retreat together", and John Major was refreshed-what he wanted was this statement.

With this consensus, the meeting of the Admiralty Building quickly made a decision.

John Major is still lucky and insists on raising interest rates for the second time before announcing the unilateral withdrawal from the European exchange rate mechanism-an increase of 3 percentage points on the basis of 12%, which is regarded as a final effort to save the pound.

However, the capital market was indifferent to this news-it is not right to say that because the pound was sold even more crazily.

Seeing this, Norman Lamont determined that John Major's ideas were too naive. The more Britain struggled in this way, the more it showed its poor skills, and the speculators went crazy with the stimulation.

Now that the general trend is over, Norman Lamont began to inform about the impending unilateral withdrawal from the European exchange rate mechanism, that is, began to inform the finance ministers of other European countries about the current plight of the pound.

Everyone is a veteran of the political arena, and of course they understand what is behind this complaint.

Italian Finance Minister Piero Barussi, who has experienced the collapse of the Italian lira, suggested that Norman Lamont temporarily suspend trading to give himself time to negotiate, instead of directly unilaterally withdrawing from the European exchange rate mechanism.

Norman Lamont patiently pointed out unreliable Italians-the modern finance minister has no right to suspend the continuous, global trading foreign exchange market.

In the midst of the inaction of politicians, the pound at the end of the road finally collapsed!

...

Tang Huan didn't seem to know the shadows of the swords and swords outside the office, and quietly checked the manuscript he had just written.

The door was knocked lightly, and then Zhuang Menghua walked in and said in a calm tone: "Just now, the British pound collapsed and fell below the lower limit of the floating range of the European exchange rate mechanism of 1 pound to 2.7780 German marks, reaching 2.7100. Deutsche Mark."

"Of course." Tang Huan said casually without raising his head: "I think what everyone really cares about is how many pounds the Bank of England lost on this day of the decisive battle."

Zhuang Menghua smiled and said: "It is estimated that this data will be classified as a British national secret for a period of time. Anyway, only the diligence and strategy on the bright side have already completed the planned 1 billion US dollar position."

"The greed of capital is endless-after the British pound is sieved, international speculators will certainly not stop there. It is estimated that the next target will be the French franc. Including Qinhe strategy, we will not participate, and focus on it. Go back to stocks and bonds." Tang Huan raised his head to explain.

"It's okay to get out of the business as soon as possible." Zhuang Menghua nodded, "The situation in France is indeed very different from that in the United Kingdom. Only in terms of the real estate lending rate, it is not as fluctuating as in the United Kingdom, and the French are more sensitive to interest rate hikes. The degree is not as good as that of the British. In particular, the French government has far more intervention methods than the British government."

"The power of hedge funds has been demonstrated vividly in the process of defeating the pound. It is estimated that many investors now have a crazy idea in their minds. As long as everyone joins hands, they can completely abuse any family~ Central Bank, even if its currency is stable." Tang Huan smiled playfully, "How can it be so absolute! By the way, don't remind Jin Chang and Jin Ge, let them toss themselves."

Zhuang Menghua rolled his eyes immediately, "What is the psychology of your father? Don't you think your son succeeds and makes money."

"Sometimes, personal frustration is also a valuable asset." Tang Huan smiled indifferently, picked up the manuscript in front of him, and handed it to Zhuang Menghua, "You, a senior student of Harvard Business School, help I will check this article from a professional point of view, so as not to be caught by mistakes and attract jokes."

Zhuang Menghua glanced at him and was immediately amused by the rhetoric of "White Wednesday", "When the British pound collapses today, the British who will certainly be guilty of gambling will be unanimously rendered as'Black Wednesday', but your opinion is the other way around. Well, don’t you think it’s not ruthless enough to slap your face at No.10 Downing Street?"

"It's not entirely because of this." The richest man shook his head: "The British pro-European faction is so superstitious about Germany's economic development achievements and the prospects of the European Community that they were in the process of negotiating to join the European exchange rate mechanism. , Overestimating the value of the pound sterling, has since been put on a tight curse, and this is a mistake made based on the consideration of political interests."

"The UK must now withdraw from the European exchange rate mechanism, otherwise the remaining two trading days of this week will not just cause the pound to collapse."

"When the United Kingdom removes the shackles of the European exchange rate mechanism, it can freely seek the policies it needs to prevent economic recession. The will of the market will be truly reflected, and the economic situation in the United Kingdom will improve instead."

Zhuang Menghua still couldn't help laughing, "But in the final analysis, it is the current Prime Minister of the United Kingdom, John Major, who has blinded the British. He needs to take the overall responsibility."

Tang Huan stretched his waist and said sarcastically: "We don't need to worry about this. Naturally, the British media will criticize John Major for his incompetence."

...

At 17:00 on Wednesday, September 16, 1992, British Prime Minister John Major convened an emergency cabinet to pass the decision of the United Kingdom to unilaterally withdraw from the European exchange rate mechanism.

At 19:30 two and a half hours later, the British Chancellor of the Exchequer Norman Lamont appeared in front of the TV camera. Exhausted and haggard, he unconsciously put his hands behind his back, looking like a prisoner with his hands tied up.

Norman Lamont said gravely: “Today is an extremely difficult and extremely turbulent day. The huge flow of funds continues to disrupt the operation of the European exchange rate mechanism... Membership status can protect Britain’s best interests."

...

This official announcement means that the Central Bank of the United Kingdom does not need to continue to rely on "buy all" to defend its currency in the open market.

However, the United Kingdom has already suffered huge economic losses before the sheep was remedied. In September, the Central Bank of the United Kingdom spent 27 billion U.S. dollars to defend the British pound, a large part of which was spent on the day of September 16, and the British pound After the baffle of the European exchange rate mechanism was removed, the value of the German mark suddenly depreciated by about 14%.

Of course, the British government will not take the initiative to disclose how much taxpayers’ hard-earned money is incompetent, but the British media can use these public data to roughly estimate a result-3.8 billion U.S. dollars.

Without any new ideas, the British media called September 16, when the British pound was humiliated, as "Black Wednesday", and launched an overwhelming condemnation of the current government.

Rumors began to appear in the market that John Major had a mental breakdown because he couldn't bear the pressure, and there was even an eye-catching depiction of him spending a lot of time in the closet crying every day.

However, the British Chancellor of the Exchequer Norman Lamont has repeatedly clarified that his boss led the entire cabinet very calmly and dealt with the financial crisis in an orderly manner.

Obviously, these politicians are holding groups for warmth, and in return, especially to prove that they are not doing nothing, John Major replaced any official of the British Treasury without accountability.

At this moment, the richest man, who had always been at odds with No. 10 Downing Street, suddenly jumped out to "wash the ground" for John Major.

When attending an industry event as a director of Jaguar Motors, Tang Huan pointed out in his speech that the media would render September 16 as the "Black Wednesday" in the United Kingdom, which is too pessimistic; from a long-term perspective, it should be "White Wednesday." Is more appropriate.

After every financial crisis, the first reaction of many people is always to belittle the market, rather than to learn embarrassing lessons from the market.

Take interest rates as an example. On September 16th, in order to fulfill the obligations of the member states of the European exchange rate mechanism, the United Kingdom raised interest rates twice in a row from 10% to 15%; but now the United Kingdom has withdrawn from the European exchange rate mechanism. Naturally, it will be able to implement more flexible policies, which will drive the export of British goods to overseas markets and revive the local economy.

...

It seems that in order to confirm what Tang's richest man said was true, the London stock market rose accordingly. Within a few days, the FTSE 100 index of the London Stock Exchange increased by 20%.

However, No. 10 Downing Street was very annoyed at the behavior of the richest man who threw out the olive branch-would you "wash the ground" to beautify the development opportunities after Britain withdrew from the European exchange rate mechanism. However, it was John who joined the European exchange rate mechanism in 1990. ·A political achievement promoted by Major ~www.readwn.com~, which is so close in time and self-contradictory, doesn't it seem that the current cabinet is more and more incompetent?

There are also traditional black Tang media forces such as "The Sun" clamoring-don't be a stern cover for shorting the pound, or honestly explain how much of the British taxpayers' blood and sweat has been plundered by Qin He's strategy in this pound crisis. Money.

Tang Huan didn't care about this. Qinhe strategy is well-known, not to mention that the entire European currency crisis was the result of Wall Street's ups and downs. Hedge funds and banks with large amounts of foreign exchange played the main role.

To put it bluntly, this is after the end of the Cold War, the United States could not understand the alliance of the whole Europe, especially not wanting Britain and the European continent to get too close, looking at the gap, and the next stumbling block-it will rob you, how dare you?

On the day of "Black Wednesday", Britain announced its unilateral withdrawal from the European exchange rate mechanism, and Italy immediately made it clear that it would follow suit.

As a result, in the following week, the pressure on the French franc was unprecedentedly heavy.

This made French Finance Minister Michel Sapin screamed outrageously that investors who made trouble should be guillotined.

But what about the facts? Who dares to do this?

This is where the British elites are interested. They confessed to their gambling, and analyzed the "White Wednesday" of the richest man, and discussed it in a special way-the future is important.

As for the responsibility, of course, it must be held accountable, but that is the incompetence of John Major's cabinet.

Those who admire the term "White Wednesday" are not only the British, but also their opponents on the day of "Black Wednesday."

When George Soros reported the investment income to Tang Huan, the benefactor, he said convincingly: "Tang, do you know how much the'White Wednesday' view will bring to the London stock market?"