by James Hickman
Schiff Sovereign
On Tuesday, September 15, 1992, the two most powerful financial officials in the British government held an urgent meeting that night to review their plan for when the markets opened the next morning.
The tone of the meeting must have felt frantic… even desperate… because the value of the British pound had been falling for weeks.
Investors and speculators were rapidly losing confidence in the UK government, mostly due to the ridiculous “Exchange Rate Mechanism” (ERM) which essentially pegged most European currencies to the German Deutschemark.
Rational investors viewed the ERM as an almost comical impossibility.