Exchange Invest 2451 Weekend Edition: From Truss To Bust?
Why the meeja/blob have it all wrong on Liz Truss, a final fighter pilot reunion, the man who broke the bank in Monte Carlo (maybe) & more…
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 2003, Argentina refinanced $21 billion in debt including $12.3 billion with the IMF.
Yesterday, we marked the anniversary in 2015, when Queen Elizabeth II became the longest-reigning British monarch.
Her reign came to an end Thursday having ruled the United Kingdom of Great Britain and Northern Ireland as well as 14 Commonwealth realms* for 70 years and 214 days.
*Antigua and Barbuda, Australia, Bahamas, Belize, Canada, Grenada, Jamaica, New Zealand, Papua New Guinea, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Solomon Islands, Tuvalu.
They were preparing children of my era for her demise at prep school before my wife was born.
Come to think of it, the administration was planning her funeral more than a decade before that…well before I was born.
“London Bridge has fallen” as the codeword goes and thus the most remarkable, devoted and diligent woman of the 20th century has passed away, spanning over 70 years on the throne having seen her husband pass away last year after a 73 year marriage.
Mrs Thatcher was incredible of course — by far the best man for the job of Prime Minister so far in my lifetime. However Her Majesty Queen Elizabeth II made even the formidably fantastic Mrs Thatcher look like a lesser mortal.
It is difficult to know where to begin as Her Majesty’s passing ends a remarkable, lengthy chapter in world history. A formidable woman whose first PM as Queen was Winston Churchill and who 70 years later enabled the 15th PM of her reign, Liz Truss, to enter office, just hours before she passed away. Selfless devotion to the nation at the remarkable age of 96.
At 96 years of age, after a 73 year marriage and over 70 years on the throne, it is worth noting that barely 1% of her subjects were alive when Princess Elizabeth was born, (fewer than one in 8 were alive when she ascended the throne in 1952).
RIP Your majesty Queen Elizabeth II, you were truly an incredible rock in our lives during a tumultuous period from 1952 until yesterday.
Long live the King!
In the UK, not only has a third female Prime Minister been installed but the governing Conservative Party stakes its claim to advancing all citizens, regardless of background or any diversity metric. Liz Truss this week established the most diverse cabinet in British history (I would wager it is the most diverse cabinet anywhere, ever). There is not a single white male in any great office of state and the Chief Whip is a woman too. It’s a remarkable line up following a campaign where there were candidates with origins stretching across the globe. The great state offices are also now all operated by people with — horror — actual pro-market small state convictions:
Prime Minister: Liz Truss
Chancellor of the Exchequer: Kwasi Kwarteng
Foreign Secretary: James Cleverly
Home Secretary Suella Braverman
The meeja is writing Liz Truss off as a complete failure. We say Phooey to all that, for the first time in a generation or more the UK is about to have a (fiscally literate…eventually) outbreak of government.
From Exchange Invest 2446: 5th, September 2022: Monday:
“Since there’s a weak rule of law in El Salvador, the “forced tender” provision of the Bitcoin law has no teeth. As a result, most Salvadoran businesses — 80 percent — refuse to accept Bitcoin as a medium of exchange.”
“The verdict is in on Bukele’s Bitcoin experiment. It was based on false promises from beginning to end. A total failure.”
How remarkable that dropping in an already outmoded, energy intensive and not very scalable asset could result in a national failure of currency replacement?
NEXT WEEK TUESDAY
Tuesday, September 13th: 1800 UK, 1900 CET, 1300 EST
Guests: Guy Melamed & Magnus Almqvist
“Exberry: Building Cloud Based Exchanges”
Watch the Stream on:
IPO-VID LIVESTREAM PODCAST
In IPO-VID Episode 064: Patrick Young was joined by Aircarbon Exchange Co-founder & CEO, Thomas McMahon.
Listen and learn more about “Energising New Markets.”
Available in different podcast sources:
EI WEEKLY PODCAST
Narain is nicked. Another former National Stock Exchange of India CEO gets arrested.
There’s a tale of Two JSE’s over in Johannesburg, it’s curtains for the plan Technology Board while in Jamaica, optimism remains around the junior market.
Is El Salvador’s BTC DOA?
The obituaries are in concerning the El Salvador Bitcoin currency play from Steve Hanke and Bloomberg amongst others.
And particularly in Europe, there is an Energy Market Meltdown.
The damning news for Europe is that even JP Morgan, led by Euro poodle and perennial Davos man on the wrong side of future trends, Jamie Dimon, has begun moving staff ex-Frankfurt to London in order to avoid working by candlelight (presumably while powering their Bloomberg terminals with pedal power?)
There is of course a solution — it’s called free markets and less kissing up to deranged dictators full of gas.
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.
Podcasts This Week
Inside The ICE House
PLY: An often excitable catastrophist, Ambrose Evans-Pritchard is on an interesting angle here, presumably after a summer of central bank fora where he has had the dirt dished under Chatham House rules…
PS I am not a big one for writing obituaries on the macro scale as economies have a habit of bouncing back but I really think this is the big one: farewell Europe, with a lot of effort, you made it! (Alas…as the new Argentina).
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!
The Conservative Woman
“The usual bogus decontextualised data and ludicrously misleading graphs were waved in their faces. Then the two witch doctors slithered out of the room and Johnson instructed the editors to get behind a winter lockdown.”
PLY: Covid is all but done and dusted albeit the Chinese continue to lock places down and nobody notices beyond those immediately affected (Earthquake victims in China forced to stay in their Sichuan homes amid strict Covid lockdown — Youtube).
PLY: A must read about the few…remaining and the reality of a final event.
WFMZ 69 News
It is January 1902 and Charles Michael Schwab is king of the world.
PLY: First in a mini series of those who may have been the man who broke the bank in Monte Carlo…
The Jerusalem Post
PLY: In our dystopian future there is a huge swathe of ‘educated’ folk who will probably seek the same burial method for Boris Johnson as a result of his role in securing the historic Brexit referendum victory.
PLY: Must admit I have never heard of this show “Industry.” Televisual representations of finance have invariably been hugely flawed (although the first “Wall Street” film brilliantly summarised a dull day in one brief segment). In the late 1980’s the Eurobond market in “Capital City” (UK ITV) included one niche merchant bank trading more than the entire London market’s tier one cap thanks to a judicious dose of added noughts on the end of trades to ‘sex things up.’
“PLY” retains a soft spot for the original “Devil’s” Sky Atlantic production thanks to his minor cameo role therein!
Fifty years after what has been described as the biggest art heist in Canadian history, the thieves’ identity remains a mystery, and nobody is keen to talk about it.
PLY: Presumably the thief is out there in a mystery clearing in South America with Bigfoot, Elvis and the mystery hijacker D.B. Cooper to partially borrow from a classic “Far Side” cartoon.
Catch up on Monday for Exchange Invest 2452…
In the meanwhile muse on this whacky outpouring amidst Europe’s self-inflicted energy crisis that “The Danish government estimates that cutting daily showers from 15 minutes to 5 minutes would save around €750 a year.”
That raises the question, who on earth has 15 minutes time to spend under the shower every day?
…If you want to stay abreast of the world of exchanges then please Subscribe to our Daily Newsletter — free 30 day trial.
Or Subscribe to our Weekend Edition — it’s free.
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.
At the least can you like this article, or leave us a comment, we welcome your feedback.
If you enjoy our multimedia, then please Like / Subscribe to our video channel: IPO-VID In Patrick’s Opinion.