From the man who broke the Bank of England in 1992 and devalued pound sterling , George Soros is warning the UK will "suffer significantly" because of Brexit.
He bases this not on any evidence or facts that the real economy is slowing, but because of sterling's historic 11% one-day decline against the dollar. Until last Friday, pound's prior record daily selloff was set by Soros himself and his $1 billion arms race against the Bank. I don't recall him worrying about how the UK would suffer back then, do you?
Also, Soros, of all people, should know that countries around the world are competing with each other on currencies -- not on who can boost the value of their currency the most, but who can make them as worthless as possible.
No doubt this is why UK stock markets, in part, have rallied since last Friday's 9% slide. A lower currency is inflationary and will make a country's goods and services more competitively priced in a world drowning in 'stuff.' In fact, the day after the Brexit results, London's FTSE 100 index was one of the top performers in Europe and Asia, closing up 3% on the week. So, no, Soros. Sorry if you were stuck on the wrong side of the sterling trade this time around, but Brexit has not "unleashed" a financial markets crisis. They might be volatile, but have been orderly and functional. Who are the ones spreading fear?
He bases this not on any evidence or facts that the real economy is slowing, but because of sterling's historic 11% one-day decline against the dollar. Until last Friday, pound's prior record daily selloff was set by Soros himself and his $1 billion arms race against the Bank. I don't recall him worrying about how the UK would suffer back then, do you?
Also, Soros, of all people, should know that countries around the world are competing with each other on currencies -- not on who can boost the value of their currency the most, but who can make them as worthless as possible.
No doubt this is why UK stock markets, in part, have rallied since last Friday's 9% slide. A lower currency is inflationary and will make a country's goods and services more competitively priced in a world drowning in 'stuff.' In fact, the day after the Brexit results, London's FTSE 100 index was one of the top performers in Europe and Asia, closing up 3% on the week. So, no, Soros. Sorry if you were stuck on the wrong side of the sterling trade this time around, but Brexit has not "unleashed" a financial markets crisis. They might be volatile, but have been orderly and functional. Who are the ones spreading fear?
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