Now we know, but we didn't then, that the capital flows private speculators can bring to bear are on the same order of size as those of central banks.
But that can only happen when there is such a mispricing, which comes from an uncontestable price differential, which has built up over time, as rates of inflation between countries diverge.
Soros was only the canary, or the nudge, that the pound was overpriced. Private speculators cannot overwhelm a centrla bank unless there is a real underlying reason to do so. In the long run, we're all dead. John Maynard Keynes
I don't dispute that they picked the wrong price to defend. But, that's not what you said. You said they were not prepared to make the efforts to adjust, where other countries did.
I think you'll find little evidence to support that assertion over the timescale (12-18 months) that we are talking about. UK fiscal policies were tightened and recession was created. Some countries devalued and re-entered the ERM (e.g. Italy) where others did their adjusting inside the shelter of the Euro (Germany), which is a much different exchange rate issue.
I wonder how much he would have felt if his job was lost because of the contraction in the economy due to Soros (et al).
I wonder how Jerome feels about the other canaries like Vulture Capitalists. ------------------------------ Rutherfordian RDRutherford
