Wednesday 215 PM

The Bank of England tries one more time to save the day. Again it raises interest rates-the second time today. Rates are now 15 percent.

Never before in British history have rates been hiked twice in one day. The rates are now at the same level as they were when John

Major, then chancellor of the exchequer, had taken Great Britain into the ERM almost two years earlier.

The speculators are not dissuaded. The pound remains below its ERM floor level of 2.778 German marks. It is becoming all too clear that the government's policy is politically unsustainable.

The markets watch British interest rates go from 10 to 12 to 15 percent in one day and understand that there is no way the country can live with such high rates for long. So the pound keeps going down, and the Bank of England keeps buying it back.

All in a futile effort to save the day. But it is becoming clear that Britain will have to leave the ERM. And sterling will have to be devalued.

Prime Minister John Major is on the phone again, this time to French prime minister Pierre Beregovoy and to German chancellor Helmut Kohl. Major's news is grim. He declares that he will have to take Britain out of the ERM. He has no other choice.

Lessons From The Intelligent Investor

Lessons From The Intelligent Investor

If you're like a lot of people watching the recession unfold, you have likely started to look at your finances under a microscope. Perhaps you have started saving the annual savings rate by people has started to recover a bit.

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