As time entered the 1990s, the economy of the former world hegemon, the British Empire on which the sun never set, inevitably entered a period of decline. The real estate market was sluggish, unemployment was rising, and high interest rates further suppressed economic growth.
Combined with the ongoing European integration process, Britain finally decided to formally join the European Exchange Rate Mechanism (ERM) in 1990.
The ERM was an economic and monetary mechanism established by multiple European countries to stabilize exchange rates and promote economic integration. Its main requirement was that member countries' currencies be pegged to the German Deutsche Mark, with strict limits on exchange rate fluctuations. Central banks needed to maintain exchange rate stability through foreign exchange market intervention or interest rate adjustments.
For both the European Community and British policy, the original intention was good—hoping to attract investors through mandatory exchange rate pegging. However, developments took an unexpected turn.
With the Eastern European upheavals and the fall of the Berlin Wall, German reunification led to massive capital flows into East Germany, triggering inflation. The German central bank had to raise interest rates to curb inflation, causing the Deutsche Mark to appreciate.
Under these circumstances, the Deutsche Mark's appreciation indirectly affected British currency. From a political economy perspective, Britain needed to lower interest rates to stimulate its economy. However, the ERM limited its monetary policy flexibility. With the Deutsche Mark strengthening, the pound was forced to follow suit with rate increases to maintain exchange rates, further dragging down the British economy.
In this situation, the pound's exchange rate within the ERM was overvalued, reducing Britain's export competitiveness.
As a member of the domestic high-income class, Mr. Granger naturally possessed financial insight. Particularly after profiting from Mr. Holmes's advice the previous year, Mr. Granger had great confidence in his friend's foresight in this area.
This was precisely why he was so shocked when Mr. Holmes suggested converting pounds into dollars and gold. Had the situation really deteriorated to this extent?
"Better safe than sorry," Mr. Holmes said, understanding Mr. Granger's thoughts and sighing deeply. "Many things are beyond human control. I really can't place much hope in our government. Old chap, think carefully about their performance over these years! The public knows nothing about how to squander public money—they're the experts. How can a country be governed well with such parasites?"
Recalling the British government's actions, Mr. Granger couldn't help but nod. "You're not wrong. Unfortunately... studying medicine can't save Britain."
"There's no choice. At times like this, I rather envy those wizards," Mr. Holmes said with a bitter smile. "They have their own independent financial and monetary system, so they don't have to worry about being affected."
"That may be so, but their financial system isn't very scientific."
"How can you talk about science in a world with magic—"
"Fair point."
"Speaking of magic, Ron's father told you too, didn't he? Everything we saw and heard at their house and in that village mustn't be told to anyone else. Otherwise, they'll cast that whatcha-ma-call-it on us?"
"It's the Memory Charm, Uncle Holmes!"
"Right, right, Memory Charm."
"Don't worry, I definitely won't tell anyone. Even Jane—when I get home, I'll only selectively tell her about our trip, keeping all the key details to myself."
"Well done! Trust me, old chap—women never keep secrets. In my experience, they always carelessly let information slip out."
"Ha ha, I share that sentiment. Once one woman knows something, it's only a matter of time before other women find out. They don't even realize when or where they've done such things."
Listening to her father gossip about her mother with Sherlock's father, Hermione felt somewhat helpless. But she had to admit her father wasn't wrong—compared to him, her mother really wasn't very good at keeping secrets. Though not quite as bad as Hagrid, still... if they could keep it hidden, it was better to continue doing so.
Hermione silently apologized to her mother in her heart.
Five people had come, but only four were returning. Without Harry, Hermione, sitting in the back seat with Sherlock, seemed particularly excited, chattering away about their experiences touring Godric's Hollow.
After all, everything they'd seen and heard was a completely new adventure for her—whether observing wizard family life at the Burrow, that extraordinary flying car, or the gentle melancholy of Godric's Hollow.
Her enthusiasm was so intense that even Mr. Granger in the front seat couldn't bear it.
"My dear Hermione, are you planning to have young Holmes write a seven-inch essay on 'A Tour of Godric's Hollow'?"
"Dad!" Hermione blushed at her father's teasing, finally realizing she'd been a bit too enthusiastic and quieted down for a while.
Next, the group first went to Privet Drive, successfully collecting Harry's luggage from the Dursleys. Regarding Harry not returning to Privet Drive for the rest of the summer holidays, both Uncle Vernon and Aunt Petunia seemed surprised, then were immediately disgusted.
"Hmph, better if he never comes back!"
"Wonderful! Finally, don't have to care for that blasted owl!"
Though they spoke complainingly, both Sherlock and Hermione could see they were being somewhat contrary. It was actually Dudley who said regretfully, "Aw, cousin's not coming back? What a shame!"
Seeing this, Hermione had an idea. At the Burrow, Mrs. Weasley hadn't only given Sherlock a gift—she'd also given Hermione a jar of homemade sweets. They tasted wonderful and were quite novel, but they were too high in sugar. Since Hermione was worried about gaining weight, she'd originally planned to savor them slowly over a long period. Now they'd come in handy.
"Harry asked me to give you this."
"Really? That's great, thank you!" Dudley excitedly accepted the gift, thanking her.
Meanwhile, seeing that Harry, though absent, still thought of their son, Uncle Vernon and Aunt Petunia showed embarrassment on their faces. Perhaps they shouldn't have spoken so harshly earlier.
Hermione observed their expressions with secret amusement—this was exactly the effect she'd wanted.
After leaving Surrey with Harry's luggage and returning to Greater London, Hermione couldn't help laughing. "Harry's cousin is somewhat similar to Ron in certain ways, isn't he, Sherlock?"
When she noticed Sherlock wasn't listening but seemed lost in thought, Hermione tapped him. "I'm talking to you!"
"Such matters are irrelevant!" Sherlock said irritably.
Mr. Granger in the front seat heard Sherlock's somewhat rude response, his eyes immediately becoming dangerous. This boy seemed rather ungrateful!
However, the next moment, Sherlock proactively apologized to Hermione. "Forgive my rudeness, Hermione. You interrupted my train of thought, but no matter—so, in what way do you think Dudley resembles Ron?"
Seeing this, Mr. Granger nodded approvingly—that attitude was more acceptable. He didn't know that Hermione was long accustomed to Sherlock's behavior. In fact, if Sherlock weren't like this, she'd find it strange.
Just like now—instead of answering his question after hearing Sherlock's words, Hermione asked curiously. "You said I interrupted your thoughts. What were you thinking about?"
"Harry's Uncle Vernon has developed suspicions about his wife."
"Suspicions? What kind of suspicions?"
"He suspects Harry's Aunt Petunia's relationship with Professor Snape."
"Pfft!" Mr. Holmes, who had just taken a sip of tea, immediately spat it out. Hermione and her father were also dumbfounded.
After a long pause, Hermione stammered. "Sherlock, you can't just say things like that! Didn't Professor Snape love Harry's mother? How could he possibly be involved with Harry's aunt—"
She couldn't continue, because no matter how she tried to expand her thinking, she simply couldn't connect these two people.
"Of course they have no relationship," Sherlock said calmly. "But my deduction isn't baseless."
"Tell us! Tell us!" Hermione urged repeatedly, while Mr. Holmes and Mr. Granger also pricked up their ears.
This sounded fascinating!
"Do you remember our departure from Privet Drive last time?"
"The time with Harry?"
"No, even earlier—when Professor Snape came over."
"Oh yes, I remember that."
"When seeing us off, Mr. Dursley's gaze toward his wife was very strange. You'd also told me earlier that when Professor Snape arrived, he greeted Harry's Aunt Petunia."
"Right, that did happen. And then?"
"After Harry's mother received her Hogwarts letter, Aunt Petunia once wrote to Professor Dumbledore, hoping she could also attend Hogwarts. Unfortunately, Dumbledore declined her request at the time.
"On the other hand, Professor Snape and Harry's mother knew each other before entering Hogwarts—they were neighbors.
Combining all this information, it's not difficult to deduce Aunt Petunia's thoughts. When she saw Professor Snape again after so many years, she inevitably recalled that letter she'd sent full of hope in her youth. Dumbledore's seemingly gentle reply contained cold rejection, shattering her dreams like a sharp knife thrust into her heart.
Ever since you told me about this, I've been observing Mr. Dursley. From his recent expressions, he's clearly noticed his wife's abnormal reaction upon seeing Professor Snape."
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