The $7 Billion Trade That Broke Britain

[@HamishHodder]

Thanks Morning Brew for my daily news briefing - sign up for free here morningbrewdaily.com/hamish

[@twopintsofmilk]

Cheers Hamish. If I ever find myself in 1992 I'll be sure to bet big on that trade.

[@HamishHodder]

😆

[@jjpp1993]

There’s always some kind of trade of that magnitude avaliable

[@twopintsofmilk]

@@jjpp1993 comment was said primarily as a joke, also as an algo boost for Ham. I agree with you

[@plica06]

Soros gets all the props for that trade. No one ever mentions Drukenmiller. At least I had never heard of him.

[@Scarprotte]

You are a good story teller. Enjoy seeing these stories from historical events.

[@MikeW-t6l]

It’s amazing how much our beliefs they teach us around money hold us back. How is nobody talking about 'Forbidden Laws of Wealth' by Victor Hayes, it really opens your eyes.

[@justin333eb]

I got it, truly a good book

[@jakek8687]

while your handling of this story is excellent, Thatcher's government had a number of powerful stimulus options available to them outside of monetary policy. Instead, they chose to aggressively privatize government services which is always risky, and selected privatization mechanisms that are famously vulnerable to low-bid attacks, graft, corruption, and rent-seeking. The collapse was not entirely inevitable. It was merely an inevitable byproduct of an exceptionally misguided regime with little to no grasp of modern economics.

[@plica06]

If the UK had waited a few more years to join the ERM, when their economy was stronger, things might have been so different. Maybe they end up joining the Euro and Brexit never happens?

[@stephenphillips6245]

Thatcher was a chemist...a 4 yr degree... having nothing to do with economics...LoL Violence against coal workers wasn't a great look either. Bottom up economics built an economy when there wasn't one and Thatcher / Reagan did the opposite dismantled a thriving economy to the benefit of the rich .

[@DavidBagrationi]

If I may, what other options were there? I have no knowledge of this, and had always thought it was unavoidable.

[@jakek8687]

@@DavidBagrationi certainly! If she had not privatized the railways and broken the unions, these self-organizing mechanisms of capital retention and reinvestment would have been superb investment options for the government. All policy, even non-spending policy, is economic policy. Make something legal, you create an industry. Make something illegal, you create a black market. Expand the rights of organized labor, and you damage the ability of corporations to move capital out of the country. Change the laws for stock buybacks, and you alter the availability of liquidity for limited partners in hedge funds. Fund - and this is a real example! - digital literacy and subsidize home computing, and you create a vibrant games industry. Not all policies work. Not all interventions are successful. But the austerite, the libertarian, the non-interventionist, they argue that NONE work. That the free market always invests best. Most efficiently. Stories like Black Wednesday are important because the main players are some of the most successful investors to ever live. So ask yourself - is it 'efficient' to engineer a currency collapse? Efficient for who? Because this was not inevitable. It hasn't happened since, despite numerous similar circumstances. Indeed, Greece has only stabilized after rejecting austerity politics.

[@12345678924439]

@@jakek8687 Norwegian government not long ago decided it would be a good idea to connect the grid to the rest of Europe and let the market decide the price of our electricity. Before we had in general low prices across the country and low volatility. We would have been completely fine during the recent years of skyrocketing electricity prices. Instead our politicians decided to let the free market rule because it would be more efficient and give us slightly lower prices in a normal situation. Because of this we had to suffer just as much as the rest of Europe with prices going up as much as 500% in certain parts of the country over a 3 year period.

[@brodyalden]

Thanks Hamish

[@HamishHodder]

first!!

[@sudharrsunnd3113]

Thanks for the video. Love to see more of such vidoes from you❤

[@fdadrtrttewrt]

Very interesting and unknown to me story. Thats why I subscribe!

[@asan1050]

Ouch! Thank you very much!

[@arranmacdonald6897]

Dude Druckenmiller is the man

[@johnnie135]

I signed up and thank you.

[@johnnie135]

I signed up and I have not received any morning emails from them. I did check my junk mail -- and nothing there either. Hmmm

[@Benzknees]

This did us in Britain a huge favour, causing us to exit the ERM (exchange rate mechanism, a precursor to the Euro, which a British politician amusingly labelled as the eternal recessionary mechanism). After that Sterling depreciated massively, giving our exports & economy a huge boost that led to the longest period of uninterrupted growth the UK has ever experienced (until the end of the property bubble in 2007). And it has since crippled countries in the Eurozone like Italy. Greece, Spain, Portugal & France, as they struggle with an overly strong currency. And the Euro has been too weak for Germany, causing an imbalance tilted towards exports.

[@AnetaMihaylova-d6f]

Euro came in 1999 . Appart from that you are right

[@MovieRiotHD]

*2002

[@AnetaMihaylova-d6f]

@MovieRiotHD officially 1999 but most countries adopted it 2002 and later

[@MovieRiotHD]

@@AnetaMihaylova-d6f Ah, fair enough.

[@jumirrofficial]

great vid thanks!

[@GEB-yy3ud]

'A central European currency is a central European government through the back door.' Margaret Thatcher

[@NoCluYT]

I wonder how well her ideas worked out...

[@tHebUm18]

3:40 Minor detail given the focus is financial, but should be saying West Germany and bonus points for a period-suitable map with it + USSR and whatnot.

[@jeppe2816]

knock knock its investopedia

[@DJOOO]

And then what happened ?

[@JB-yb4wn]

Well they put the city of London on caterpillar tracks and started hunting down other cities to devour. It was all in the papers.

[@Daytona2]

Have currency fixes ever worked I wonder ?

[@irokpe6977]

No

[@bionicle37]

Please can we get a Milei Argentina video. I beg

[@DomTurula]

I dont understand why rich people are allowed to massively leverage stock?

[@joseaguirre744]

Being able to borrow large amounts to just gamble and speculate should be illegal. Even looking at 2008 i’m surprised how we simply just allow banks to create trillions of dollars out of thin air.

[@Vladan.Vukovic]

Ah that 15th of September...

[@anticrust4181]

What happened to Tom?

[@BroxsonDeighan]

I will be forever grateful to you, you changed my entire life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Charlotte Miller.

[@stephaniebeddis8069]

I'm surprised that you just mentioned and recommended Charlotte Miller, I met her at a conference in 2018 and we have been working together ever since.

[@SaadmaanShohid]

The very first time we tried, we invested $1400 and after a week, we received $5230. That really helped us a lot to pay up our bills.

[@HighlightsSerieATIM]

Their ...services are very genius and experienced in the market for over a decade and counting, they changed my life from a poor plumber to a better and middle class family man with 2kids.

[@anatolyivan]

I'm new at this, please how can I reach her?

[@GrozaGroza-ko7fn]

I just withdrew my profits a week ago, To be honest it was an amazing feeling when the profits hits my wallet I wish I could reinvest but, too much bills

[@sunilkumargarg9676]

UK joined ERM some 20 percent overvalued as per German Central Bank. The seeds of Black Wednesday were sown right on BirthDay.

[@betohfinger879]

2days after my birthday...

[@presswbots2689]

Why does no one talk about Soros agenda for the long term. Love the content my guy.

[@lastempire7302]

14:35 when you have a Prime Minister raising interest rate instead of the Central Bank, you know that country is fucked.

[@HamishHodder]

😂😂

[@crusher465]

Up until 1997 the interest rate in the UK was set by the Chancellor, not the Bank Of England. They'd consult the Bank of England, but the decisions was always made by a politician.

[@johnl.7754]

Soon to be President Trump sounds like he would like to do that (push interest rates lower).

[@Nur45382]

A music is absolutely not needed here.

[@AWS-1488]

This is antisemitic

[@landcruiser29]

Lol what 😂

[@AWS-1488]

@landcruiser29 it confirmes the idea that Jews control the economy .

[@BootsieTheGreek]

And he knew why it would fail it’s called the United States government 🤣

[@noneed8468]

this story has been told so many times on youtube

[@AnetaMihaylova-d6f]

It's important

[@macaccount4315]

I worked for Soros. Really smart guy. Good man too.

[@hhbattery4746]

>good man Biggest joke ever

[@philbow6374]

Good man? 😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂 right..

[@AnetaMihaylova-d6f]

​@@philbow6374he is smart though

[@aowen2471]

Obviously not aware that he collaborated with the Nazis in WW2 - and when asked about it stated "If he hadn't done it, someone else would have". All those Jew friends of his that he kept their gold 'safe' for their return!

[@AnetaMihaylova-d6f]

@aowen2471 he is smart