7 No Trumps – November 27th 2016

Playing bridge, backgammon or chess is not dissimilar to “playing” the markets. Every new hand, board or day brings something different; a new auction, a new gambit, a new strategy. However, in the world in which we find ourselves the markets have an unseemly edge; they are not always what they appear to be at first sight. The conspiracy theorists have been roundly derided, but then we find that LIBOR is being rigged, gold and silver are being manipulated, banks have sold worthless bonds and we suspect much other skull duggery besides. The “culprits” have been fined and a few scapegoats have gone to jail; known, in current day parlance, as “the cost of doing business”. The media have barely raised a sweat in reporting these “misdemeanors”. For many outside the banking “cartel” LIBOR is probably a second derivative of Trebor a well know mint confection in the UK. Much of the interest these souls pay on their mortgages and credit card loans is based on LIBOR rates, so perhaps they should be more concerned. But no, life goes on in a virtual reality world created by the media enterprises and their not insubstantial backers. The latest “news” is that there is a lot of “fake news” being reported. How else would the Don have become president elect and the Brits have voted for Brexit?…

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