threespires
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- 7 Aug 2019
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Some in the City are still waiting for our Teutonic allies to ride over the hill with promised forces to rescue us on Black Wednesday. Alas currency speculators like Joe Lewis made a killing at this county's expense instead - good of him to bankroll spurs after permanently damaging the UK economy I suppose.
""The cavalry were the Bundesbank. We kept on looking over the hill, but there was no dust and there were no hats and no sabres. And then later at the conference call they suddenly didn't speak English, which was extraordinary. So we were kind of stretched on that day," he said. Thirteen years later, Treasury papers would be released showing the cost to be an estimated £3.3bn."
News had filtered through to traders that the head of the German Bundesbank was in favour of Britain devaluing its currency. If this was his view, it explained why he was unwilling to spend money propping up the UK at a higher exchange rate. He obviously believed it was a doomed project and not worth any more German taxpayers' money.
Knowing Britain had a paucity of foreign currency reserves to sell, speculators such as Soros confidently moved in for the kill. The radio news bulletins that afternoon quoted traders using words such as "slaughter" and "disaster" to describe the situation.
I was in the car a lot that day and I remember the near real time reporting on the radio as the interest rate rose and Lamont tried in vain to prop things up. I think I read a while later that at one point during the day Major had some sort of mini breakdown in the loo or something. Not quite pencils up the nose and wibble, but people were worried for him.