Currency Armageddon!

“The Global Crisis is caused by pathologies inherent in the global financial system itself.”- George Soros.

George Soros grew into a distinguished personality in the investment world after he “broke the Bank of England”. In 1992, he made a contrarian bet against one of the largest central banks in the world by shorting $10 billion worth of Sterling. The “Black Wednesday” which made Soros a £1 billion took place on September 16th 1992, when the UK government suffered embarrassment and was “compelled” to withdraw the Sterling from the European Exchange Rate Mechanism(ERM). While Mr Soros and other short sellers made a bounty, the UK taxpayers lost £3.3 billion. As the adage goes, one person’s gain is another person’s loss.

Reminiscent of the Black Wednesday, the Asian Financial Crisis of 1997 led to a currency crisis in South East Asia. The contagion, which began in Thailand, swiftly spread to other regions in Asia, and the currency crisis soon led to a sharp decline in the stock markets.…