How George Soros Destroyed The British Pound

In this video we go over how hedge fund manager George Soros broke the Bank of England. In the early 1990s the UK pegged its currency to the German Deutsche Mark at a fixed exchange rate They did this in an attempt to import Germany’s low inflation. However, the peg was higher than the fundamentals of the UK economy could justify and it was thus unsustainable. Sors saw the opportunity and initiated a massive short position with a notional value of 10 billion pounds. When the Bank of England was finally forced to withdraw from the exchange rate the pound fell 20% and Soros made a profit of 1 billion pounds. This went down as one of the greatest trades by any hedge fund in history.

#Wallstreetmillennial

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[maxsterling]

It was actually Stanley Druckenmiller who came up with this idea which Soros rejected. He then explained his reasoning and Sorors agreed. Druckenmiller had a small position open but Soros told him to go all in.

[lestercranmer]

I had just bought my first flat in 1989 I remember the letters every other day from building society about my rates going up, topped at over 15% I managed to keep up the payments, many couldn't & lost everything including my neighbour, he destroyed a lot of lives in the UK.

[smortg]

A great video that helps clarify the issues of the time.

Upon learning that the economy of a country with the UK's level of influence can be affected by the economic games of a hedge fund manager does set a weird sense of hopelessness, but at least these days it's easier to short squeeze lol

[Studeb]

He did it to Italian Lira and Swedish Krona at the same time I believe, the interest rate went up to 500% for a few days in Sweden, and we had the biggest house market crash in our history.

[jaypandey]

This is one of the most insightful videos I’ve seen so far. Thanks for putting this out.

[ruthc]

The Queen should have sent a real 007 after Soros.

[anthonyferris]

To fix one currency to another is madness that only a politician could come up with.

[coraltown]

Thanks for the detailed and insightful description of How John Major Destroyed The British Pound.

[ericli]

He tried to do that to Hong Kong as well but he failed.

[williamforsyth]

It is similarly interesting and would worth a video, how Soros spent this money. The International Science Foundation in Russia, the Soros Foundation in Eastern Europe, or his intervention during the siege of Sarajevo.

[smode]

I'm sorry but one man should not have the ability to devastate an entire currency and harm all the people of a country.

[zvebrstremnyj]

Thanks from Ukraine! Actually, Soros's book "The Alchemy af Finance" turned me into learning economics.

[nicks]

It would be great to also hear you talk about the great Druckenmiller who was also a part of this story.
Great content as always!

[rocktcatU]

The only person to have pounded the British Pound.

[coolerammo]

Love your vids bro. Your niche is so unique and good. Nobody makes videos like you.

[atd]

He was the deep fucking value of his time.

[nati]

You actually did it! Thank you for this!

[TheInvisibleOne]

From Hungarian immigrant with only $100 in his pocket when he came to America to a world ruler!! What a crazy story.

[Abc-bjbk]

I hate when People saying that Soros was a Genius and dont give Credit to Druckenmiller. Duckenmiller had the idea of shorting the pound.

[jeffreysmith]

Great video but you left out Stan Druckenmiller's pivotal role in this trade.