Exchange Invest 2428 Weekend Edition: From Celeb CEOs to Taiwan Tantrums
A Taiwan Tantrum backfires as Carbon Capture closure looms. Celebrity CEOs off the rails and rules for a new UK PM. Welcome to EI Weekend.
Exchange Invest is a unique information resource combining the day’s stories in a newsletter for investors in exchanges/financial markets infrastructure.
Exchange Invest was founded by former exchange CEO and author of the first bestselling book of fintech (“Capital Market Revolution!” FT 1999) Patrick L Young. Monday through Friday our daily paid subscriber email discusses the business of bourses of all kinds across the world.
This weekly edition is a magazine of broader macro topics as well as including our free weekly podcast which reviews the highlights of the week in the world’s market structure.
On this day in 1981, President Ronald Reagan signed into law the Economic Recovery Tax Act of 1981 (ERTA).
ERTA produced the biggest tax cut in U.S. history. It slashed the top income tax rate from 70% to 50%, while the lowest was reduced from 14% to 11%. Capital gains taxes were also lowered from 28% to 21%.
In addition, the plan opened up Individual Retirement Accounts (IRA) to all workers under age 70 ½, allowing them to save up to $2,000 a year towards retirement.
With federal deficits soaring, and the U.S. in the grips of a recession a year later, Congress passed the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA). That bill cut spending and raised taxes, reversing some of the provisions of ERTA.”
In BigWorld
From Exchange Invest 2423: 8th, August 2022: Monday
For those who like their asylums policed by lunatics, finally, it’s clear that Central Banks were an epicentre of this trend for more than a decade.
Amongst the front runners eager to self-immolate their credibility is the Bank of England where successively trumping form over substance, has — it seems entirely shockingly to the Court — resulted in inflationary chaos and a fundamental mandate fail (to the point where the merits of BoE independence are, rightly, being questioned).
Last week’s latest dose of hysterical catastrophism led to Professor Douglas McWilliams, head of the Centre for Economic and Business Research noting in the Telegraph (Governor Andrew Bailey’s catastrophism is out of control): “They have gone over the top on this. I don’t think serious economic analysts believe the Bank of England’s forecasts any more.”
My sole quibble here being that this fiasco masquerading as forecasts was more than evident when Britain singularly failed to turn into a nation of mud hut dwellers despite the useless Brexit disaster prognostications of the horrifically overrated Mark Carney.
Naturally, there is much talk of ‘heads must role’ with the inadequate — but not yet as egregiously ghastly as his predecessor — Andrew Bailey’s head being demanded on a plate. However, that’s just another single person repo and Buggins of HR will ensure another numpty is elevated to fill the role. The macro remains that the Bank (like so much of the UK government) is simply unfit for purpose and requires wholesale revision.
In their latest “you can’t make this up” outpouring, Bank of England have issued a blog post (Cryptoassets, the metaverse and systemic risk — Bank Underground) which cautions that the metaverse could lead to systemic risks for the financial system.
Thank goodness the Old Lady of Threadneedle Street remains such a watchful and wise steward inflation of the British economy and the Pound Sterling.
IPO-VID LIVESTREAM PODCAST
In IPO-VID Episode 060: I was joined by UK Trade and Agriculture Commission Member & Fellow at the Centre for Brexit Policy Catherine McBride.
Listen to our interesting discussion about “After Brexit Where Next For World Trade?”
Available in different podcast sources:
EI WEEKLY PODCAST
JamStockEx powers ahead while ICE posts sound numbers once again while Xpansiv makes its second acquisition in a month.
LSEG reckons it’s on target to achieve whatever it thinks is a target for Refinitiv
while we’re not sure anybody believes this
…and Coinbase appears to be cracking.
The Exchange Invest Weekly Podcast 156
Victory Or Death
20 years on from the first fintech bestseller “Capital Market Revolution!”… “Victory Or Death” is a must read book for anyone interested in the intersection of Blockchain, Cryptocurrency and FinTech as part of the whole future of finance.
Macro Thoughts
Sanctions Are Working — Whatever Putin Says
The Spectator
PLY: I appreciate in EI we have expressed concerns, particularly about how Germany is reliant on Russian energy and thus feeding the Ukrainian invasion. However, it does appear — cheering news for those of us maintaining a preference for border propriety — that certain elements of western media are not digging enough into the numbers and that, in reality, Russia has problems. Truly sorry for any of our friends / colleagues from the parish and beyond stuck with such economic problems but at the same time, we need a resolution to the Ukrainian invasion which delivers at the very least a bloody nose and certainly not appeasement to a Russian President who has been ruthlessly aggressive.
Of Interest
As always, a review of interesting reading to provoke thoughts and consideration… Not sure we agree with much of it….but it’s thought-provoking!
How To Be PM: Ten Rules For The Next Tory Leader To Live By
The Spectator
How A Celebrity CEO’s Rule Of Fear Helped Bring Down Hot Startup Zilingo
The Economic Times — Indiatimes.com
A Celebrity CEO And A Startup Implosion
Bloomberg
The charismatic CEO wooed tech gatherings with her vision of how startups like hers were a new model for the emerging world.
Time Has All But Run Out For World’s ‘Largest Carbon Capture Project’
S&P Global
China’s Taiwan Tantrum Is Already Backfiring
The Spectator
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You can also check out the “Reflections From Young’s Pyramid”, it illustrates the relative value of exchanges around the world.
Or the “ICE Cost of Borrowing 2020–2022” An Interest Rate Comparison, which illustrates the end of the funny money era of QE and how interest rates have already had a major lurch up from their previous region of zero to, even negative, levels.
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