No. 2: Stanley Druckenmiller betting on the frame twice. Stanley Druckenmiller made millions by betting long (Long Bets) twice to the same currency while working as an operator for the Quantum Fund of George Soro. The first bet Druckenmiller came when the Berlin Wall fell. Already perceived difficulties with regard to the reunification between East German and West German mark had led to a depression that Druckenmiller considered extreme. Initially, he made a multimillion-dollar bet for future recovery (Rally) until Soros ordered to increase their purchase of 2 billion DM. Things were consistent with the plan and the long position (Long Position) came to be worth millions of dollars, helping to take the Quantum Fund's performance above 60%. Possibly due to the success of

your first bet, Druckenmiller German mark also made an integral part of the largest foreign exchange operation in history. A few years later, while Soros was busy breaking the Bank of England, Druckenmiller was making a purchase long (Going Long) to the framework, under the premise that the consequences of his boss's bid would fall in sterling relative to the frame . Druckenmiller was confident that he, like Soros were right and demonstrated this by buying British shares. He thought England would be forced to slash interest rates on loans (Lending Rates), stimulating in this way, businesses and the pound cheaper actually mean more exports compared with European rivals. Following this line of thought, Druckenmiller bought German bonds with the expectation that investors would move to these when German stocks show lower growth in the UK. It was a very complete operation significantly increased the earnings of the main bet against the pound from Soros. No. 1: George Soros vs.. The pound sterling. The pound remained close to the German mark in the period prior to the decade of the 90s, although the two countries were economically very different. Germany was the strongest country despite the persisting difficulties of reuniting, but England wanted to maintain the value of the pound over 2.7 frames. Attempts to maintain this standard left Britain with high interest rates (Interest Rates) and an equally high inflation, but required a fixed rate (Fixed Rate) of 2.7 frames per pound, as a condition of access to the European Rate Mechanism Change (ERM, by its initials in English). Many speculators, George Soros being chief among them, wondered how long the fixed interest rates could fight against market forces, and began to take short positions (Short Positions) against the pound. Soros borrowed large sums of money to gamble more by the fall of the pound. England raised interest rates to double digits to try to attract investors. The government hoped to ease the selling pressure (Selling Pressure) to create more buying pressure (Buying Pressure.) However, pay interest costs money, and the British government was realized that lost billions trying to create an artificial surge in the pound. He withdrew from the ERM and the pound's value plummeted in relation to the frame. Soros made at least a billion dollars thanks to this operation. Meanwhile, the devaluation of the pound conducted by the British government helped, and the force that drove the economy to excessive interest and inflation, making it an ideal environment for business. A thankless job. Any discussion of the largest foreign exchange transactions always revolves around George Soros, because many operators have some connection with him and his Quantum Fund. After retiring from active management (Active Management) of its funds to focus on philanthropy, Soros made comments with regard to investments in foreign currencies, which were seen as expressions of regret for having built his fortune by attacking currencies. This was a strange change for Soros who, like many currency traders, made money by removing inefficiencies in market prices. England did lose money because of Soros, and was forced to spend the bitter pill represented withdraw from the ERM, but many people also see the problems that arose in the operation, the steps that helped England to emerge stronger. If there had been a fall in the pound, Britain's economic problems would have continued being dragged while politicians directed their attention to the ERM. Conclusion. A country may benefit from a weak currency, much as he can do it in a box. With a weak currency, goods and assets (Products and Assets) nationals become cheaper for international buyers and exports rise. Similarly, domestic sales are increased due to rising prices for foreign products, because of higher import costs. Most likely, there were many satisfied people in England and New Zealand when speculators were overvalued currencies fall. Of course, there were also importers and others who were very upset and with great reason. A currency speculator makes money by forcing a country to stand up against realities rather not have to face. It's a dirty job but someone has to.