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The UK Chancellor Osborne Demonstrates That He’s An Expert In Revisionist History
From CNBC: UK ‘Vindicated’ for Refusing Euro: Chancellor Osborne
Britain’s decision of not joining the euro was
vindicated by the crisis in the euro zone, as the countries in the
single monetary union have lost control of their monetary policy, UK
Chancellor of the Exchequer George Osborne told CNBC.
The UK did not join the euro because
that would have meant giving up decision over interest rates and
removing exchange rate flexibility, Osborne said in an interview late
Tuesday.
“And, you know, I feel that our view
has been vindicated by recent events, and I’m very pleased the UK’s
not part of the euro,” he said.
Whaaaattt????!!!! That’s not the way I remembered it. As I recall, a
man with a proprietary investment style very similar to my own (see “The Great Global Macro Experiment, Revisited“) George Soros warned the UK officials not to join the Euro and they ignored his advice.
From
a Global Macro perspective, it is actually quite profitable taking the
opposing side of Central Bank trades. They are inevitably always wrong!
If one were to look at the track record of my public calls via
BoomBustBlog over the last 4 years, this assertion is proven true
without a shadow of a doubt.
He then levered up against the pound as the UK tried to manipulate
its currency to fit within the EMU’s mandated band. The man reportedly
made $1 billion off of that trade (which was a lot of money for a trade
back in the ’90s) and was labeled a villain. Methinks they should erect a
shrine in homage of Soros in Trafalgar Square instead. It appears quite
obvious that Soros was right and the UK government was wrong. Here’s
how Wikipedia puts it:
On September 16, 1992, Black Wednesday, Soros’s fund sold short more than US$10 billion worth of pounds,[24] profiting from the Bank of England’s reluctance to either raise its interest rates to levels comparable to those of other European Exchange Rate Mechanism countries or to float its currency.
Finally, the Bank withdrew the currency from the European Exchange Rate Mechanism, devaluing the pound sterling, earning Soros an estimated US$1.1 billion. He was dubbed “the man who broke the Bank of England.”[26] In 1997, the UK Treasury estimated the cost of Black Wednesday at £3.4 billion.
On Monday, October 26, 1992, The
Times quoted Soros as saying: “Our total position by Black Wednesday
had to be worth almost $10 billion. We planned to sell more than that.
In fact, when Norman Lamont said just before the devaluation that he would borrow nearly $15 billion to defend sterling, we were amused because that was about how much we wanted to sell.”
Stanley Druckenmiller,
who traded under Soros, originally saw the weakness in the pound.
“Soros’ contribution was pushing him to take a gigantic position.”[27][28]
CNBC goes on to report:
In 1997, the UK government notified
the European Union that it was not intending to adopt the euro on its
launch on January 1, 1999. The country can change its mind at any time
and introduce the single currency if it meets the economic criteria on
issues such as inflation, interest rates and budget deficit.
This decision came from the lesson that Soros taught them, no?
Euro zone countries are setting out “convincing plans” to deal with the debt crisis, Osborne said, showing that the Irish took “very difficult” decisions such as cutting wages to become competitive again.
The plans are not convincing at all, at least not to anyone who bothered to read them. Reference:
-
Smoking Swap Guns Are Beginning to Litter EuroLand, Sovereign Debt Buyer Beware!
-
Once You Catch a Few EU Countries “Stretching the Truth”, Why Should You Trust the Rest?
-
Lies, Damn Lies, and Sovereign Truths: Why the Euro is Destined to Collapse!
As for the UK, we have looked into them and they have their own issues forthcoming. Subscribers, reference 
UK Public Finances March 2010. Those who do not subscribe can glimpse this two page preview (click here to subscribe) which gets the message across:
Next up, fancy Spanish haircuts, Portuguese hairstyles to avoid, and a
longer term view of the currency malaise such as the one mentioned
above. After that we will get back to the US banks and the monoline
thing and then look at the tech companies that I have an interest in.
- advertisements -
"The man reportedly made $1 billion off of that trade (which was a lot of money back in the ’90s)"
lol
With UK in EU zone, Euro would have absolutely no chance whatsoever..As it is, It is already screwed enough, put 10 Irelands together and you get the UK...
After the ERM flameout, the UK had plenty of opportunity to rejoin the single-currency project. Blair wanted a referendum on Euro membership but Gordon Brown effectively vetoed the idea.
Hello, the euro was made as a play thing for the brits. Euro = British Bitchez
They got Europe to join up, and then said, no.
That WAS the plan. They wanted another shot at playing god over europe. They already were, given their financial system dominates the world, but they wanted DIRECT control.
It's amazing how many people don't want to see through the lines. The euro was never for the europeans, it was for British Bankers and the Queen of England, and if not them, her inter-alpha group of banks...which represents today's version of the British Empire.
This could of been seen a mile away, if you just didn't believe the original bullshit. Hell in high school even my teachers were questioning the viability of a 'euro'. Only the fools bought in.
Ah, that was a fun morning to be sure. :)
To see Lamont outside No. 11 first thing saying one thing and knowing that it would be over well before then end of the day was a scream.
Yet there is still those who want the UK to join the euro - madness.
The ERM and the Euro are two completely different animals. So you have created a false dichotomy. Not joining the Euro is probably the only smart thing the UK has done in the last 15 years.
But I congratulate Reggie for all of his great calls this year.
What he said.
The Tories have never wanted to join the Euro.
Specifically and especially Margaret Thatcher.
Many an early 80's, anti-Maggie punk/ska lyric should be be taken with a grain of salt these days.
Actually the real reason UK didn't join the Euro is because of a little-known edict which mandates the physical transfer of a country's gold reserves to the ECB irrevocably.
UK would/will never sit down for that.
no. Brown sold all their gold
Revisionist History abounds.
Goldman is advertizing (soft and mushy stuff) in Popular Science; what cheek- a magazine likely to have a Giant Squid.
By the skin of their teeth, Britain retained the pound.
Oligopolies in Banking, Production and Media.
The message is controlled- just like Goebels, Stalin and China. Only a tad bit more sublte.
The MSM must kowtow to its bankers.
why is Popular Science always used by elites to push their crap...CIA must own them or something like that