while your handling of this story is excellent, Thatcher's government had a number of powerful stimulus options available to them outside of monetary policy. Instead, they chose to aggressively privatize government services which is always risky, and selected privatization mechanisms that are famously vulnerable to low-bid attacks, graft, corruption, and rent-seeking. The collapse was not entirely inevitable. It was merely an inevitable byproduct of an exceptionally misguided regime with little to no grasp of modern economics.
If the UK had waited a few more years to join the ERM, when their economy was stronger, things might have been so different. Maybe they end up joining the Euro and Brexit never happens?
Thatcher was a chemist...a 4 yr degree... having nothing to do with economics...LoL Violence against coal workers wasn't a great look either. Bottom up economics built an economy when there wasn't one and Thatcher / Reagan did the opposite dismantled a thriving economy to the benefit of the rich .
@@DavidBagrationi certainly! If she had not privatized the railways and broken the unions, these self-organizing mechanisms of capital retention and reinvestment would have been superb investment options for the government. All policy, even non-spending policy, is economic policy. Make something legal, you create an industry. Make something illegal, you create a black market. Expand the rights of organized labor, and you damage the ability of corporations to move capital out of the country. Change the laws for stock buybacks, and you alter the availability of liquidity for limited partners in hedge funds. Fund - and this is a real example! - digital literacy and subsidize home computing, and you create a vibrant games industry. Not all policies work. Not all interventions are successful. But the austerite, the libertarian, the non-interventionist, they argue that NONE work. That the free market always invests best. Most efficiently. Stories like Black Wednesday are important because the main players are some of the most successful investors to ever live. So ask yourself - is it 'efficient' to engineer a currency collapse? Efficient for who? Because this was not inevitable. It hasn't happened since, despite numerous similar circumstances. Indeed, Greece has only stabilized after rejecting austerity politics.
Up until 1997 the interest rate in the UK was set by the Chancellor, not the Bank Of England. They'd consult the Bank of England, but the decisions was always made by a politician.
Thanks Morning Brew for my daily news briefing - sign up for free here morningbrewdaily.com/hamish
Cheers Hamish. If I ever find myself in 1992 I'll be sure to bet big on that trade.
😆
There’s always some kind of trade of that magnitude avaliable
@@jjpp1993 comment was said primarily as a joke, also as an algo boost for Ham. I agree with you
while your handling of this story is excellent, Thatcher's government had a number of powerful stimulus options available to them outside of monetary policy. Instead, they chose to aggressively privatize government services which is always risky, and selected privatization mechanisms that are famously vulnerable to low-bid attacks, graft, corruption, and rent-seeking. The collapse was not entirely inevitable. It was merely an inevitable byproduct of an exceptionally misguided regime with little to no grasp of modern economics.
If the UK had waited a few more years to join the ERM, when their economy was stronger, things might have been so different. Maybe they end up joining the Euro and Brexit never happens?
Thatcher was a chemist...a 4 yr degree... having nothing to do with economics...LoL
Violence against coal workers wasn't a great look either. Bottom up economics built an economy when there wasn't one and Thatcher / Reagan did the opposite dismantled a thriving economy to the benefit of the rich .
If I may, what other options were there? I have no knowledge of this, and had always thought it was unavoidable.
@@DavidBagrationi certainly! If she had not privatized the railways and broken the unions, these self-organizing mechanisms of capital retention and reinvestment would have been superb investment options for the government.
All policy, even non-spending policy, is economic policy. Make something legal, you create an industry. Make something illegal, you create a black market. Expand the rights of organized labor, and you damage the ability of corporations to move capital out of the country. Change the laws for stock buybacks, and you alter the availability of liquidity for limited partners in hedge funds. Fund - and this is a real example! - digital literacy and subsidize home computing, and you create a vibrant games industry.
Not all policies work. Not all interventions are successful. But the austerite, the libertarian, the non-interventionist, they argue that NONE work. That the free market always invests best. Most efficiently. Stories like Black Wednesday are important because the main players are some of the most successful investors to ever live. So ask yourself - is it 'efficient' to engineer a currency collapse? Efficient for who?
Because this was not inevitable. It hasn't happened since, despite numerous similar circumstances. Indeed, Greece has only stabilized after rejecting austerity politics.
Why does no one talk about Soros agenda for the long term. Love the content my guy.
Thanks Hamish
first!!
Thanks for the video. Love to see more of such vidoes from you❤
Very interesting and unknown to me story. Thats why I subscribe!
I signed up and thank you.
Ouch! Thank you very much!
great vid thanks!
knock knock its investopedia
Soros gets all the props for that trade. No one ever mentions Drukenmiller. At least I had never heard of him.
14:35 when you have a Prime Minister raising interest rate instead of the Central Bank, you know that country is fucked.
😂😂
Up until 1997 the interest rate in the UK was set by the Chancellor, not the Bank Of England. They'd consult the Bank of England, but the decisions was always made by a politician.
Soon to be President Trump sounds like he would like to do that (push interest rates lower).
What happened to Tom?
Please can we get a Milei Argentina video. I beg
Have currency fixes ever worked I wonder ?
And then what happened ?
Well they put the city of London on caterpillar tracks and started hunting down other cities to devour. It was all in the papers.
And he knew why it would fail it’s called the United States government 🤣
I worked for Soros. Really smart guy. Good man too.
this story has been told so many times on youtube