BOO!! Soros: A vote for Brexit would trigger a crash worse than Black Wednesday


George Soros is clear: a vote to ‘Leave’ the EU would trigger a collapse in the British pound worse than “Black Wednesday.”

Writing in The Guardian, the legendary macro trader said Britain currently risks subjecting itself to one of the worst one-day currency collapses in its history if it votes to leave the European Union.

“It is reasonable to assume, given the expectations implied by the market pricing at present, that after a Brexit vote the pound would fall by at least 15% and possibly more than 20%,” Soros writes.

He added (emphasis mine):

“But I don’t think the 1992 experience would be repeated. That devaluation was healthy because the government was relieved of its obligation to ‘defend’ an overvalued pound with damagingly high interest rates after the breakdown of the exchange rate mechanism. This time, a large devaluation would be much less benign than in 1992, for at least three reasons.”

The 1992 incident Soros references, known in financial market history as “Black Wednesday,” is the collapse in the value of the pound after the British government pulled the currency from the European Exchange Rate Mechanism (sort of the euro before the euro) due to the inability of the government to defend the pound’s value against the Deutsche mark.

Soros was among the many traders who had placed massive bets the British pound would drop in value as he believed the government would eventually be forced to pull out of the ERM.

In other words: Soros knows this history.

Soros’ three main points in Monday’s piece are that:

  • With interest rates at a record-low 0.50%, the Bank of England couldn’t cut rates in response to a currency shock.
  • The UK’s current account deficit makes it dependent on foreign capital which could dry up in the event ‘Leave’ wins.
  • A post-Brexit devaluation of the currency would be unlikely to benefit British manufacturing exports as the cheaper pound did in 1992.

On Thursday, Britons will head to the polls to vote in the referendum. Recent polling has shown the ‘Remain’ camp taking a lead against the ‘Leave’ camp, with the most recent poll on Monday night showing ‘Remain’ holding a 53-45 advantage over ‘Leave.’

Following polling out over the weekend showing the spread between ‘Remain’ and ‘Leave’ narrowing, the pound rallied more than 2% against the dollar on Monday, one of its biggest one-day gains since the financial crisis.

And so markets are beginning to see polls and feel better about the prospects we’ll wake up on Friday and things will be as they were in the European Union.

But Soros’ warning is one that many in financial markets are likely to take very seriously.


mild panic setting soros is wheeled out again to scare the punters..hes not an orphan..the “remain” stooges are everywhere..

“Writing in The Guardian, the legendary macro trader said Britain currently risks subjecting itself to one of the worst one-day currency collapses in its history if it votes to leave the European Union.”

one thing is for sure..soros will be hedging a bet..he can win either way..


~ by seeker401 on June 23, 2016.

33 Responses to “BOO!! Soros: A vote for Brexit would trigger a crash worse than Black Wednesday”

  1. By SOTN

    EU Exposé: A Planned Totalitarian Superstate to Destroy Europe

    • Regardless of what the original intentions were behind the establishment of the European Union (EU), it’s now clear that the true masters of the current leaders are hellbent on using it to destroy what is left of European culture and national identity.

      The events of the past few years have dramatically demonstrated, beyond any doubt whatsoever, that the EU has morphed into quasi-communist, quasi-fascist super-state inexorably arcing in the direction of totalitarianism. This supranational entity was specifically engineered in order to manufacture consent Europe-wide especially around those issues of great import to the furtive ruling elites. The primary item on their covert agenda concerns the imperialistic designs being surreptitiously promoted by the NWO cabal. (Think war on Russia.)

  2. The Jews always threaten financial armageddon in the event of Nationalism.

  3. The pound probably would fall – but “they” will know it will come right back up and even further since it will be a hedge in the future against euro “events” . Plus it will continue as a great place for flight capital and crime cash .

  4. panama canal expansion opening now…just saying

  5. Here we go, lining up the players on the chessboard for the next false flag event

    Europe and the U.S. both need infrastructure upgrades as the greedy ‘ones’ have taken the profits and let their countries go to hell. Panama Canal and the Reventazon Hydroelectric Plant in Costa Rica need to be paid for, as well as the projects they’ve built over in the MENA area of the world. Who will be the unlucky nation to be blamed this time? Russia? Saudi Arabia?
    Israel, haha? Cheney and friends, and Genie Energy need to get that oil out of the Gaza / Syria area so the zionist crowd can reap those profits as well.

    “ISIS Delighted with Brexit Calls for Attacks in Europe”

    • and as usual, oh surprise!!, the source of such valuable info- on ISIS’s threats is israeli Rita Katz’s private SITE…oh my!…

  6. I don’t know what to think about Brexit and the BigMoney: out of the EU the British banks will be subject to less restrictive regulations…Do the BigMoney loose or win with the Brexit?

  7. “ifBritain used the e uro, theECB already would have crashed its banks& told them to hold another r eferendum in a few days.”
    THEY narrative tday is ohhhPutin support Out &Isis too way to spot THEY

    btw THEYcollect ( most the subject of Seek post )
    on Bernie tday-6- 2 plus3-16 =6-6-16 same number whenAP &THEY stole Cali & anointed THEY warmonger
    Int THEY will tryNAU

    this was at good headline no the best cup of teafBreibart AndrewRIP
    Seek send you this one remember eh?

  8. BBC Brexit referendum coverage biased:

  9. pure gold! lol

  10. Currency manipulations.
    The chaos of the campaign is used as an excuse .
    Article is total chaos inducing BS!
    Fact =banks don’t get regulated.
    Its just a story and everyone is buying it.

  11. Who do you guys think controls the value of the pound!!
    Do you thing currency is not fixed by the merchant bankers and their IMF.
    Who regulates the banks?!
    A story that you are believing.


  13. Soros is right.. he ‘s letting a little out of the bag

    This whole BREXIT scam (which will lead to other pre planned EXITs) is just to inject chaos into the world. right now – they are trumping up propaganda on various exits through the mainstream media.

    I reckon they are executing major moves through the chaos & smokescreen.

    ORDo AB CHAO..

    nb. Funny how they put it that it a victory for the ‘little guys’ and a freedom for banksters and financial fraud…. lol

  14. is with planetPonzi Seek is Max acting at bite strange than normal does eh?
    out can prevent aWar out with THEYbanksterSS plan

    out can prevent aWar

  15. -“‘BREXIT’ would cause the “most intense period of instability” since WW2″ this quote in on his page no much explanation either
    & here probably He said it
    [audio src="" /]
    busy busy with stopWarmongerHillary so no much listen to Max lately

  16. “one thing is for sure..soros will be hedging a bet..he can win either way..”

    Soros, the billionaire who ‘broke’ the Bank of England, wins big from Brexit

  17. this just happen
    THEY still want change-Syria put one of THEY puppets or most infinity-war
    THEY will bring backTurkey toEU table & THEY will encircleRussia
    btw Poroshenko said forge it about theReferendum guess is use to

  18. &tday Ista-Airport
    RIP for Victims but why the MSM #FoxNews #CNN have only coverage of thisTragedy all day never happen bfore why?

  19. oops all ready told ya Seek Ista-airport Real & when they rescue the PLP they don’t closed the doors &start-carnage that lately is THEY way
    but is REAL it put in perspective who are THEY hidden-hand behind this groups

  20. yeah rating one thing is more to the story to many things is past 3 days even the apology &
    this make brain-storm about Ista Airport “”Muslims don’t kill muslims” Someone doesn’t keep up with affairs in the MiddleEast very much…
    THEY have someAffairs
    yday post in other post( BorisHeritage ) this

  21. oops somebody post this ““”Muslims don’t kill muslims” Someone doesn’t keep up with affairs in the MiddleEast very much…”
    here we keep with ALLaffairs in the World


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