The pound sterling crisis. A small fragment from the summary "Business adventures"

The pound sterling crisis. A small fragment from the summary

The pound sterling crisis.

In 1960’s one of the most respectable currency was probably the British pound sterling. There were several reasons for that: its age and high value.  But at some point, it began to be attacked by financial speculators and as this currency was so respectable the world community had nothing to do but to help it.

The very first event we should look at talking about what happened to British pound was the Bretton Woods Conference that took place in 19940’s.

The Bretton Woods Conference was mainly about creating a common monetary space where all the currencies could be exchanged at a fixed rate.

From now on all the countries were supposed to be having the currencies moving all the time.

And at some point the crisis concerning British currency occurred. It happened as there were some economic challenges that Britain was facing at that time. So the speculators wanted the pound to fall in price. They were betting against the pound.

The governments (the once that had united ti help) faced not only a problem that was about British currency but a problem concerning the Bretton Woods system as well. So they had to support the pound. What they did was that they all were buying it all the time.

At some point, they were not capable of keeping up to it as they were out of opportunities to buy. As a result, even though the alliance that was supposed to save the pound managed to postpone the crisis, they never delayed and that was the moment when the Bretton Woods system would first start to dilapidate.

This process was over a decade after the crisis had occurred – in 1971.


About the book.

This book creates a comprehensive view of some of the most influential economic, financial and business episodes last century.

This book has become one of the most favorite books of the richest people in the USA.  You have probably heard that Bill Gates and Warren Buffett are among them.  “Business adventures” is often called a book for billionaires.

This book is basically a series of 12 tales, which tell us about different cases that took place on Wall Street and that we would never think are connected in any way.

It talks about:

- Ford Motor Company disaster (Edsel);

- The rise of Xerox;

- The scandals at General Electric and Texas Gulf Sulphur;

- The Piggly Wiggly supermarket chain fall.

A writer of articles in the 1950's and 1960, many for the New Yorker, the author intelligently and thoughtfully steps through 12 events, one per chapter.    

You can read the whole summary "Business adventures"  here.

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