I became the richest man in the world after losing my life in a vegetative state.

When Yang Ming was just rising in Hong Kong, in March 1979, under the leadership of the two big brothers, West Germany and Country F, the eight member states of the European Economic Community established the European Monetary System.

Because there are 8 countries with different currencies and different economic strengths, if they directly join the euro, it will inevitably cause economic turmoil for each economy, so we first establish an initial exchange rate link between the currencies of various countries.

Therefore, the first step is to fix the exchange rates of each country's currency with each other and float them together against the US dollar.

As a result, the following regulations came into being. 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 must intervene in the market by buying and selling its own currency within the prescribed exchange rate floating range. The currencies of member states can float relative to the currencies of other member states, because West Germany was the most powerful economy at the time. The exchange rate between the currencies of each member state was anchored by the West German Mark, which stabilized the country's currency exchange rate within a specified range. within.

On October 1990, 10, Country Y announced that it would join the European Monetary System.

It was announced that the upper limit of the pound-to-mark exchange rate is 3.1320 marks, the lower limit is 2.7780 marks, the central exchange rate is 2.95 marks, and the floating rate is about 6%.

That night, the European Community issued a statement welcoming the fact that it was finally together with the whole of Europe, but this itself was a false start.

All because the pound was already overvalued at this time.

At the economic level, Country Y was on the verge of recession at this time, and inflation was soaring. From the beginning of 1989 to before joining the EMS in September 1990, the CPI rose from 9% to 5%. High interest rates seemed to be ineffective against high inflation, but instead increased the economic impact. Risk of recession. So we are caught in a dilemma: if we keep interest rates high, the Great Depression is inevitable, but if we cut interest rates, we can't stand inflation.

Country Y urgently needs to cut interest rates and release funds to stimulate the economy, but it is worried that this will lead to the depreciation of the pound and capital outflows, which will trigger a financial and economic crisis.

Therefore, they placed their hope on using external forces and chose to join the exchange rate mechanism of the European Monetary System to stabilize the pound exchange rate and control inflation. After joining the EMS, Country Y immediately announced an interest rate cut of 1%.

Facts have proved that the people of country Y are still very cunning. After joining EMS, the cpi of country Y dropped significantly.

On February 1992, 2, twelve European Community countries signed the Maastricht Treaty, marking the euro's renewed push forward and its determination to unify the European continent with the euro.

In fact, the establishment of the euro was indeed a bumpy road. It was established to challenge the US dollar, and the people of China would definitely not agree to it.

The economic weakness at this time made it impossible for the pound to maintain its overvalued exchange rate.

However, because of joining the European Monetary System, the pound must be pegged to the mark, and there is a lower limit, so it can only float within the limits of the exchange rate mechanism, and its hands are tied.

We are in a dilemma. If the pound depreciates, it is very likely to exceed the lower limit of the exchange rate, and it will leave the European monetary system, declaring the failure of country Y's foreign exchange policy, and losing popular support.

If the pound does not depreciate, the exchange rate will be overvalued, and capital will vote with its feet, foreign exchange reserves will continue to bleed, and the consequences will be serious.

Country Y chose to carry it to death.

All this was seen by Soros, the financial giant in history. According to Soros's Quantum Fund's research on Country Y, it was believed that Country Y's economic downturn required interest rate cuts and stimulus measures.

As an important institution that ensures market stability, the Bank of England is the backbone of Country Y's financial system and has extremely rich market experience and strong strength.

Before this, no one had dared to challenge Optimus Prime of Country Y, or even thought about it. However, Soros decided to do something that no one had ever done before, shake the so-called strong pillar of Country Y to test how stable it is.

After the merger of East and West Germany in 1990, country D needed a large amount of capital to support the construction of East Germany. And because the infrastructure project was in full swing and inflation was gaining momentum, people in country D urgently needed to raise interest rates to keep funds at home and suppress inflation.

The linked exchange rate of European countries is the pound against the mark of country D. There are upper and lower limits. People in country Y need to cut interest rates to stimulate the economy, and people in country D need to raise interest rates. This creates a huge contradiction. If the pound does not depreciate, funds will continue to flow into country D. , which has brought extremely adverse effects to the market of country Y, which is itself in recession.

As time went by, people in country Y began to be unable to stand it anymore and asked the federal bank of country D to lower interest rates. However, countries always put their own interests first. People in country D were worried that cutting interest rates would lead to domestic inflation and may trigger an economic collapse. , directly rejected Country Y's request. Country D not only rejected the Seven-nation Summit's request to cut interest rates, but instead raised the discount rate to 92% in July 7.

In the opinion of domestic experts and business elites, Country Y's stubborn spirit of maintaining a high exchange rate cannot be sustained. However, in the summer of 1992, Country Y repeatedly reiterated that it insisted on maintaining its current policy unchanged and that Country Y had the ability to keep the pound within the European exchange rate system. .

Although Soros is convinced that country Y cannot maintain its position in the European exchange rate system, the people of country Y are just bluffing.

At this moment, on the other side of the Atlantic, Soros and other speculators have been increasing the size of their positions in the past few months in preparation for a sniper attack on the pound.

Their specific operating methods are as follows. They use mutual funds and multinational companies that have long-term arbitrage operations in the market to first buy large amounts of weak currencies such as the pound and the Italian lira, and then wait for the fluctuations in market sentiment to amplify the sentiment that is bearish on the pound. , adding fuel to the flames, waiting until market sentiment reaches its extreme, then selling weak European currencies in large quantities and quickly to make profits!

After country D raised the discount rate to 1992% in July 7, market sentiment changed, causing a wave of selling of pounds and lira in the foreign exchange market and rush to buy marks. The pound-to-mark exchange rate fell from 8.75 to 2.95, and then It fell from 2.85 to 2.85. The Bank of England issued an emergency order to purchase 2.7964 billion pounds to stabilize the exchange rate. The Bank of England successfully exerted the power of Great Britain's magic needle.

Although the British pound and the lira continue to be unfavorable, they are both big countries. If Soros directly confronts Country Y, he may not be able to win easily.

The blitzkrieg began. In Finland, an inconspicuous small Nordic country, after country D raised interest rates, Finnish people exchanged Finnish marks for country D marks. By September, the exchange rate of Finnish marks against country D marks continued to fall. According to European countries have linked exchange rate rules. In order to maintain a rigid exchange rate, the Finnish central bank sold a large amount of country D marks and bought Finnish marks.

But cannon fodder is destined to be cannon fodder.

Finnish blue can’t hold on any longer. On September 9, the Finnish blue mark plummeted and decoupled from the D country mark. From this point of view, it is still necessary to watch more news and be stupid. Oil the soles of your feet and change the Finnish blue mark first. People successfully save themselves.

At that time, Britain and France felt that something was wrong, so they suggested to Germany to lower interest rates. However, the minds of the people of country D were as incapable of turning as their highways. They believed that the decoupling of the Finnish blue mark was insignificant. Country D even publicly announced on September 9 that country D would not Interest rates will be lowered. It is the connivance of country D that makes the market believe that the linked exchange rate system is in big trouble, and the powerful country D does not seem to be interested in meddling in its own affairs.

Soros, the big shark, seemed to smell the smell of blood, and speculators from all walks of life swarmed in with red eyes!

On September 9, Soros launched an attack on the Italian lira.

Not only are Italians unable to fight, the exchange rate is also a mess. In one day, it plummeted by 1 points, approaching the lower limit of the linked exchange rates of European countries. Italy is different from Finland. It is a famous economic power in southern Europe. It is the lira of Italy. The plunge shook the world.