Exchange Invest Weekend Edition 2493: Britain’s Democracy Dies?
Arms vs commodity dealers. Central bank democratic deficit: dumb or duplicity? Backstab to Victory: new PM / no outbreak of government.
On this day in 2012, NYSE shuts down for hurricane Sandy, although some say the repercussions from the storm were not the hurricane itself…
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.
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In BigWorld
From Exchange Invest 2492: October 28th, Friday:
Lest you missed it, amidst the seriously horrific Russian invasion of Ukraine has also led to a breakdown of peace talks between Russia and Japan aiming to end…the Second World War. Japan’s tough stance against Russia’s invasion has apparently angered the Putin regime.
IPO-VID LIVESTREAM
IPO-VID livestream will be having an All Souls’ Day break, we will be back on November 8th with BMLL Chief Product Officer Elliot Banks as our offices are closed Tuesday November 1st.
NOW ONLINE
Season 14: Episode 04: IPO-VID Livestream 082:
October 25th: 1800 UK, 1900 CET, 1300 EST
“Christian Katz: Securitizing The Future”
Christian Katz is the CEO of Helveteq AG, an issuer of ESG transparent investment products including carbon neutral Exchange Traded Products (ETPs). He is also Founder and Managing Partner of financial consulting firm MainStrait AG and holds several board seats in the financial and technology sectors.
Previously Christian was the CEO of SIX Swiss Exchange, VP of Europe’s largest index firm STOXX and President of FESE, the Federation of European Securities Exchanges. He began his career in investment banking where he held leading positions at Goldman Sachs and JP Morgan. He holds a PhD in business administration from the University of St. Gallen in Switzerland and lives in Zurich, having worked in Hong Kong and London during much of his professional life.
Watch the Stream on:
IPO-VID LIVESTREAM PODCAST
In IPO-VID Episode 072: Patrick Young was joined by Movmint Co-Founder & Chief Strategy Officer, John C.H. Kim.
Listen to a fascinating episode discussing Central Bank Digital Currency and the Future of Money.
EI WEEKLY PODCAST
DB1 Sparkles
MCX results are even more spectacular still
SEC Under Resource Strains
MIAX buys FCM Dorman Trading
and BMLL Garners Healthy Funding
The Exchange Invest Weekly Podcast 167
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
Episode 324: Dwight Chapin, “The President’s Man,” On The U.S. & China, 50 Years After Nixon’s Visit
Inside The ICE House
Macro Thoughts
Federal Reserve’s Inflation Fight Leaves Emerging Markets Scrambling For Answers
South China Morning Post
Breaking the Bank in Monte Carlo (Part 3)
Part 1: EI 2451 22nd September 2022
Part 2: EI 2487 22nd October 2022
Okay okay actually there have been at least 6 men (no women alas) who broke the bank at Monte Carlo according to the practices of the time of having a reserve (or ‘bank’) and thus when the table expends the reserve the ‘bank’ was said to be broken.
Joseph Jagger, best known as “Jaggers” was a mechanic from Yorkshire in England whose engineering experience taught him that no roulette wheel was flawless. On a quest for a bias towards certain numbers before engineering met up with the Monte Carlo simulation software and helped iron these flaws out through precision manufacture, Jaggers went to the Beaux Arts Casino in Monte Carlo in 1873 with a team of six clerks. Each clerk was assigned a roulette table to examine and soon Jaggers found a pattern — the numbers 7, 8, 9, 17, 18, 19, 22, 28 and 29 seemed to hit every time.
In 1875 — presumably after a fair few sleepless nights and a lot of saving — Jaggers returned to Monte Carlo and placed bets on these golden numbers, earning himself a whopping £120,000 (equivalent to about $18 million in today’s money). The casino rapidly adapted and placed dividers between numbers to stop the strategy. Jaggers took home the equivalent of nearly $10 million in 2022 cash, returned to the mill where he worked and invested in property.
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!
The Hidden World Of Commodity Trading
Morning Star
“The Markets” are pictured here like some kind of extra-terrestrial judiciary, a floating set of wise, disembodied minds.
But of course “The Markets” are a bunch of (mostly) blokes trying to make sure they and their bosses get to hang on to, or increase, their money.
Thanks to two Bloomberg journalists, Javier Blas and Jack Farchy, you can read a really gripping book about another set of “Markets,” and the very real blokes-and-their-money who operate them.
PLY: Britain’s Communist newspaper (even in times of Sunakian socialism it has a limited circulation) reviews the Blas book which is probably interesting but I can’t help but note said Bloomie hack recently didn’t appear to know that ICE have circuit breakers for gas markets in Europe…which suggests he may not have quite the fundamental commodity knowledge he self-identifies as a c.v. strength.
Sir Basil Zaharoff | Greek Merchant
Britannica
PLY: Reading the book review above which has a kind of shock and awe that suddenly some merchants might be involved in shady deals (as opposed to those fabulously above board politicians, especially those held in high regard by the Morning Star like Vladimir Ilyich Ulyanov or that Georgian geezer Ioseb Besarionis dze Jughashvili.
Anyway, famously lampooned by Hergé in TinTin & The Broken Ear as Basil Bazaroff, Sir Basil Zaharoff is a fascinating character from history about whom I would love to learn more… The story goes that when he began burning his papers (such a shame…the secrets would have been fascinating) as he felt death approaching, his butler was concerned Zaharoff would be scorched by the intense flames as he set about removing some clearly controversial legacy archives…
Liz Truss: My Part In Her Downfall
The Spectator
Sadly, she was unable to deliver. Even though I had only a small part to play, I am sorry that I could not have done better too. But was this a revolution worth pursuing? My answer is an unequivocal ‘yes’.
America’s Conservatives Would Never Elect A Hindu
UnHerd
PLY: Britain having a Hindu PM is…nothing important other than a footnote that the diversity obsessed lefties failed and the party of tradition, the Conservatives have elected Britain’s first Afro-Indian origin PM after 3 women (Labour null points on all counts). Wild racism has ensued from the sort of lefties in England, Scotland and elsewhere who reckon everyone else is racist apart from them and those well-balanced folks of the Twittersphere..
At least there was something to cheer about this PM who will prove an abject failure on pure play political grounds — even if he wins an election the stain of being part of the decline of Britain will be his (albeit not unique — it has taken 30 years to descend into this mire) hallmark.
It is worthwhile noting however for all the obsession of the left with identity politics et al, that the British Conservative party produced more female, Hindu and minority Prime Ministers this summer than all the opposition parties have managed in their entire Parliamentary history.
The NHS Is Slowly Suffocating British Conservatism — And Sunak Knows It
Telegraph
Almost uniquely, this country has virtually socialised the whole cost of population ageing: the NHS, unlike other, better-designed universal health systems, is entirely taxpayer-funded, and the state is about to take on even more liabilities by underwriting the costs of elderly care. Like all nationalised industries, this one was ruinously expensive and wasteful — while delivering a scandalously sub-par service by international standards — even before Covid and lockdowns made it implode. Britain is being made to work for the NHS, rather than the other way around, a shocking state of affairs that explains why Mr Sunak is about to increase our taxes yet again.
PLY: The problem is PM Sunak (family motto allegedly: “Backstab to Victory!”) may be capable of appreciating the NHS is a doomsday health cult in desperate need of being reformed and managed but he has zero intention of doing anything as the vogue these days is to hang on to office because otherwise the unelected forces gang up on you… which brings our narrative today neatly to:
Emily Carver: Britain Deserves Better Than A Return To The Failing Status Quo Truss Took On
Conservative Home
Liz Truss’s Ouster Wasn’t The Markets’ Doing
Bloomberg
The way the UK government fell should worry all who support democracy.
The precipitous fall of former UK Prime Minister Liz Truss’s government has been widely credited to the objective discipline of financial markets. Her misguided policies, the logic goes, elicited such a negative reaction that she had no choice but to backtrack and resign.
I see a very different story. Markets didn’t oust Truss, the Bank of England did — through poor financial regulation and highly subjective crisis management.
PLY: Narayana Kocherlakota, a former Minneapolise Fed President spells out a worrying fact that is amongst many missed by the mainstream media of late when writing (unfairly) Truss administration obituaries. The role of the Central Bank whether as incompetents or insurgents against political will needs to be examined after a decade where the UK Central Bank has failed to demonstrate any merits to its being politically independent (AKA where it has endlessly sought to influence politics through Brexit and into the recent Gilt market debacle).
Kocherlakota’s column ends ominously: “The prime minister was seeking to fulfill her campaign promises. She was thwarted not by markets, but by a hole in financial regulation — a hole that the Bank of England proved strangely unwilling to plug.”
Will Anyone Buy My Liz Truss Book?
The Spectator
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