George Soros has joined many of the most important influencers on the planet and stated his strong support for the United Kingdom staying in the European Union (EU). He especially wanted to make a stand in the controversial issue. Soccer star David Beckham and wife Victoria also support staying in the EU. Thursday is the big vote. Saying, “Brits don’t quit,” Prime Minister of Britain, David Cameron, commented emphatically.
Pointing out that Britain leaving the EU’s combined 28 countries would badly injure British living standards, which will cause the nation’s money value to plummet. This would be a replay of Black Wednesday 24 years ago. George Soros feels the pound may drop as much as 20 percent, but he is sure it will at least drop 15 percent. Soros gave out these comments during an interview with the Guardian daily newspaper.
Brexit and the Future of Europe
It was in 1992 Britain’s currency value dropped 15 percent after the country left the European Exchange Rate Mechanism. In an address to the UK on Tuesday, David Cameron urged older citizens to vote ‘no’ in the referendum vote, because their children’s future is on the line. The Beckhams echoed that they are concerned for the welfare of their children and their grandchildren. They feel that Europe will fare better in the future united than to return to a divided state.
In Prime Minister Cameron’s speech that he made outside his official residence at No. 10 Downing Street, he made the point that the decision would probably be permanent. He said the hopes and dreams of future generations hung in the balance. George Soros believes there will be no corresponding rise in exports manufacturing, as happened in the similar situation way back in 1992. He says Britain leaving the EU would cause the British pound to drop to about the same value as the euro. In effect it is one way they would actually ‘join the euro’ in a de facto way.
This is the situation in which Soros originally made $1.1 billion USD in 1992 by investing in shorting British currency with his Quantum Fund. He was taking into account a finance system designed to lower exchange rate volatility, called the European Exchange Rate Mechanism. This day became known as the Black Wednesday in the finance world. Read the details of the story in USA Today.
Learn more about George Soros: http://www.cnbc.com/2016/06/25/brexit-makes-eus-dissolution-practically-inevitable-george-soros.html