How to save a collapsed market? People have already lost confidence in the pound. Now there is no need for financial speculators to add fuel to the flames. People are rushing to sell pounds and buy marks.
9:00 am.
Prime Minister Major got into his bulletproof car and took two minutes to leave Buckingham Palace and go to the Old Admiralty Building, which was his temporary residence because No. 10 Downing Street was being renovated. At the Old Admiralty Building, he was going to meet with government officials
A meeting was held on which, ironically, the topic was Mayo. When news of the impending financial disaster filtered into the conference room, those present felt that they had become a de facto war cabinet.
10:30 am.
Lemont put down the phone and claimed that everyone in the British financial community was in danger. Major left the conference room and went to the phone room, where he listened to Lemont describe to him how the pound continued to fall. German interest rates remained fixed, and the Germans saw
No matter how hard it is, we must prevent devaluation at any cost, even if it means giving up the government's credibility at the critical moment. Lemon asked the Prime Minister to agree to increase the interest rate by two percentage points. Major nodded.
11:00 am.
The announcement was made and interest rates were raised. "This is because monetary pressures and instability are subsiding," Lemont claimed. He hoped rates would fall, but few believed that would happen anytime soon. Although Lemont announced the rate increase
, but unfortunately the pound exchange rate has not stabilized. Financial officials are aware of the government's
Preliminary failure. Major also reversed his earlier refusal to reopen Parliament and asked MPs to reconvene to discuss the currency exchange rate mechanism crisis and Britain's economic problems. Parliament was asked to meet on September 29. This action is unusual
Since World War II, the British Parliament has only been called into session 10 times.
12:00 noon.
The Bank of England intervened further, but it was too late. On that fateful day, the Bank of England spent 7.3 billion pounds worth of foreign exchange reserves to buy pounds to support the British currency, but to no avail.
1:30 pm.
At the beginning of the US market operation, the pound was sold off. One currency speculator described it: It was like water flowing out of a faucet. This is extremely normal.
At the same time, the "Wall Street Journal" and "The New York Times" published exclusive interviews with Soros, Hu Shuwen and other arbitrageurs. In the newspapers, Hu Shuwen's smiling face was particularly charming, but the title of the interview article was domineering - "
Sell the pounds that are destined to depreciate in your hands, take advantage of the last day when the final battle is over!"
The commentary page published a theoretical article titled "The Inherent Contradictions of Sterling and the European Monetary System" signed by Yang Jingchu, a doctoral student in finance at the Wharton School of the University of Pennsylvania, and his teacher. The article told the world in a pretentious academic tone
investor, pound
Why is it destined to depreciate? Let’s tell all investors in a seductive manner: Sell as soon as possible, add fuel to the fire, and rob the Bank of England together (Of course, academics won’t be so straightforward, but that’s what it actually means, or how else to say it)
What about unscrupulous literati?).
2:15pm.
The Bank of England came to another rescue and raised interest rates again. This was the second time in a day, and the interest rate has reached 15%. There has never been an example in British history of raising interest rates twice in one day. The current interest rates are the same as May's.
It was the same as when Britain joined the exchange rate mechanism. Speculators did not retreat, and the pound was still below the minimum exchange rate against the mark stipulated by the exchange rate mechanism. Obviously, the government's policy could no longer have political support.
In one day, the pound interest rate rose from 10% to 12%, and then to 15%. Everyone knew that the UK could not bear such high interest rates for a long time. The price of the pound against the mark continued to fall, and the Bank of England continued to buy.
One day's efforts are of no avail, the UK will have to leave the European Monetary Exchange Rate Mechanism and the pound will have to depreciate.
Major picked up the phone again, this time to the French and German chancellors. Major's message was stark. He announced that he had to withdraw Britain from the exchange rate mechanism and that he had no choice.
4:00 pm.
The afternoon of Black Friday is getting darker and darker. The UK is in the midst of a sterling crisis and is forced to withdraw from the currency exchange rate mechanism. The winners, financial speculators around the world, are laughing; the losers, such as Major and Lemont, admit defeat in frustration.
Officials from the Bank of England participating in a meeting invited by other European central banks revealed that the pound will terminate its connection with the currency exchange mechanism. The price of the pound against the mark fell by 2.7%, and was later exchanged for 2.1 pound per pound on the New York exchange market.
The price comparison was 703 marks, which was well below the minimum limit of the exchange rate mechanism.
5:00 pm.
Major convened a meeting of cabinet members, and finally everyone agreed that Britain would withdraw from the currency exchange rate mechanism, Italy would also withdraw, the British and Italian currencies would float freely, and the central banks of the two countries would not have to purchase their respective currencies in the market to maintain their status.
Television crews and reporters gathered outside the British Treasury waiting for the decision to be announced.
7:00 p.m.
The decision was finally announced. Lemont, who has always been extremely confident about the pound, appeared in front of the camera. He put his hands behind his back like a prisoner. He forced a smile, but the smile was fleeting. He pushed his forehead with his right hand.
hair, and then he began to speak: "Today," he said, "is an extremely difficult and chaotic day. A large number of financial events have occurred one after another, making the exchange rate mechanism useless...At the same time, we must make a
"Tough decision, the Government believes that only by suspending its membership of the Exchange Rate Mechanism can the best interests of the UK be safeguarded."
He admitted failure, his face was depressed and thin. The British Economist Magazine called it "extremely disappointing". This is in line with his proud announcement a month ago that "the international financial speculators headed by the hand of God will lose all their money."
The appearance forms a sharp contrast.
The war is over.
When the autumn wind blows across the earth, bringing golden season everywhere, China's 10.1 National Day celebration lanterns have not yet been picked up, and the pound battle has finally come to an end.
"Gentlemen," Hu Shuwen smiled and stood in the conference room of the Hand of God International Macro Hedge Fund on the 33rd floor of the Rockefeller Center Financial Building in the United States to discuss merits and rewards. "Next, each of you will receive one month's salary.
Happy holiday.”
The conference room was filled with joy. The money managers who had been fighting intensely for more than a month were all smiles and high-fived each other to celebrate the victory. This huge victory of the Hand of God Hedge Fund brought huge rewards to every employee.
The bonus amounting to hundreds of thousands and millions has been transferred to their personal accounts, and now, they can start their wonderful trip.
When the applause stopped, Hu Shuwen reminded him with a smile: "Don't forget to go to work because of the wonderful vacation. Today next month will be the day when the Hand of God Hedge Fund officially accepts investment from outside."
Many employees were secretly staring at their boss. She was so young and so beautiful. But no one dared to really show their love, because they simply did not dare to think that they could be worthy of this person.
The girls who are only a few meters away from each other, in their hearts, Hu Shuwen is holier than an angel.
"Okay!" Hu Shuwen clapped his hands and said, "Everyone can sort out the things at hand as quickly as possible, and then start your free travel immediately."
"Boss, what are your arrangements, or should you continue to work?" Senior Money Manager Walker asked aloud.
"Do you want to give up your vacation and stay and work with me?" Hu Shuwen asked with a smile.
Walker replied: "Of course, it is more pleasant to be able to work with you than to take a vacation."
"Giggle," Hu Shuwen smiled brightly: "No, I need to rest for a while just like you. I will go back to China to spend time with my family."
The Bank of England and Prime Minister Major are silently tasting the bitter fruits of defeat, while those who have reaped the fruits of victory from the fall of the pound are rejoicing. Among them are professional arbitrageurs such as Soros, Bruce, Kavanagh and Paul Johns.
There were also capital giants such as JP Morgan and Chemical Bank of New York. Of course, the one who enjoyed the most sumptuous dinner in everyone’s eyes was an Oriental girl who had just celebrated her 27th birthday—Hu Shuwen.
When all the dust settled, the context of this war, which took more than a month from beginning to end, was cleared up. People were surprised to find that this was a well-planned battle, in which a certain fund played the most important role from beginning to end.
The key role, from the beginning of the war to the outbreak of ga
It is fighting at the forefront of the o wave, and the giants in the financial world are just following its footsteps. The name of Hand of God Hedge Fund instantly reached the top of the financial world, and its founder Hu Shuwen
He is also regarded as a miraculous figure like a god.
"Forbes" magazine made a special report on this, and London's "Daily Telegraph" published a report on the front page of its double issue in October with a huge bold headline: "I made a profit of $3 billion as the pound plummeted."
Accompanying the "Daily Telegraph" report was a photo of Hu Shuwen, smiling and walking on the street with long hair, and the lead line was: "The most beautiful woman in the financial world made a profit of two billion US dollars from last month's currency crisis."
The latest cover of Time Magazine chose another photo of Hu Shuwen, a girl in a smart business suit, who appeared bravely on the world's most famous magazine. The eye-catching title is: The man who defeated the Bank of England
woman.
The "Washington Post", which had been singing "Multiple Pounds" before and was not in the same pace as Hu Shuwen and others, wanted to interview Hu Shuwen, but was rejected by this Beijing girl who always wanted to report. The editor-in-chief of the "Post" was very depressed and regretted himself.
They underestimated the Hand of God and its leader Hu Shuwen. In desperation, they had no choice but to interview Suo
Ross, because of the existence of Hu Shuwen, the time and space in which Soros was reborn as Xia Xiaoluo was far less prosperous than in another time and space, at least not as much media attention, so he readily agreed. And the next day, the Post published
The title made Soros a little depressed - "Soros claimed that she makes more money than me, and her name is Hu Shuwen."
Not to be outdone, the Wall Street Journal produced a special feature on last month's pound war, and the one who occupied more than half of the entire page was this beautiful girl, whose smile and smile captivated countless men.
As a professional financial newspaper, the "Wall Street Journal" summarized the rich results of the Hand of God Hedge Fund, which doubled the well-known huge figure of 3 billion. The "Wall Street Journal" said that the Hand of God Hedge Fund had a great impact on the success of financial geniuses.
Under his leadership, he once again created a miracle in the financial world and gained a huge wealth of US$6 billion in two months. Half of this came from the pound, and the other half benefited from countries such as Italy, Spain, and Sweden that were affected by currency shocks.
The figure of 6 billion U.S. dollars is relatively accurate, but Xia Xiaoluo's actual income is not that much. To be more precise, his income is 5 billion U.S. dollars, and almost another billion is collected by financial institutions such as Swiss banks.
That's $30 billion in short-term loan interest.
Hu Shuwen received a call from the principal of her alma mater, the London School of Economics, on September 16, congratulating her on being selected as a new class of outstanding alumni like Soros. Her photo will be hung in the corridor of the main teaching building together with Soros.
and on the walls of the library for students to admire.
In any case, just like the trajectory of history, Xia Xiaoluo and Hu Shuwen won, and achieved a big victory that made financial investors around the world look up to them.