A reasonable aspect of Brexit
in view of the world financial economics
The latest news of England make us notice “he is serious”.
In the United Kingdom, the prime minister Boris Johnson October 17th agreed the new Brexit deal with EU.
This situation seems to be within European Union’s expectation. Especially Germany hope not to talk again any more.
However, this agreement was not in the country. On 19th October, the parliament stopped his arbitrary in the due process.
After all, he revised the new Brexit deal plan.
How would another Brexit delay work?
MPs were due to vote on Prime Minister Boris Johnson's revised Brexit deal. But they have voted for an amendment that…
So why did he fasten the Brexit deal?
It is the reason why the UK met the Pound-crisis in 1992.
It is called as “White Wednesday” or “Black Wednesday”.
The crisis was derived from that the UK joined in ERM(European Exchange Rate Mechanism) on EC.
In 1990, the Prime Minister Thatcher disagreed to join this member, because this system would be beyond the British control.
ERM was in control of Germany.
However, the cabinet and Parliament support to join ERM and she signed the agreement.
After Thatcher’s administration, Major became the Prime Minister and support ERM.
Then Pound was poured into the European currency market.
In Germany the west was eager to invest to the Eastern development.
Thus, Pound was priced as more high valued than the actual.
The legend investor George Soros noticed this situation.
His hedge fund “Quantum Fund” start to sell Pound in 1992.
The stock market was taken effect and let Pound be down.
This British history is alike with the present relationship between EU and the UK.
In this aspect that Boris took action for Brexit quickly was reasonable.