Once upon a time our parliamentary system was the model for all others. Now we have reverted to the days of “rotten boroughs” or should it be “rotten politicians”. At least it has taken the heat off the investment bankers who were also guilty of milking the system.
Much talk of reform in both spheres – it seems they just won’t leave laissez faire alone. With every crisis the legislators determine to change the rules so it “wont happen again”; but it always does…There is arguably too much legislation not a lack of it but where would the legal profession be without it? There are just too many vested interests to prevent true parliamentary democracy from working.
Enough of politicians! Markets have done pretty well since March but before we get too excited we are only back to where we were at the end of December and I don’t remember too much bullishness around back then. The truth is that a lot of people have missed this rally and the latecomers are keeping it going, but there is a distinct lack of momentum lately, which is a less positive sign.
Bond yields are moving up as is gold so for the moment the inflationists have the upper hand aided by the glut of government paper coming onto the markets, but with parts of North Korea “glowing in the dark” the next move may be another chapter in the flight to safety.
So what will the next four months hold while I am away on my motorbike? If I knew I wouldn’t tell you! Here are three totally off the wall guesses. Gordon Brown calls an election after claiming mortgage payments on 10 Downing Street – he’s mortgaged the rest of the country so why not! North Korea won’t be the only place to experience some “fall out”; who will stop the Taliban getting hold of Pakistan’s nuclear arsenal? The US, Iran or Israel? If option two gets going then option three must be to buy more gold.
We’ll have a post mortem when I get back. The tour starts from the Ace Café in London on June 4th and we should be in New York having taken in Siberia along the way by the end of September. It’s still not too late to contribute to the charity I am sponsoring via the link below. A big thank you to those who already have and to those who I am sure will be doing so soon!