The inflated elephant in Lex’s room

I do not believe there is an active conspiracy, but I do think that the collective power of the large and amorphous city establishment (this includes the Financial Times), consciously and unconsciously limits the agenda for discussion, to one which is survival friendly for the tribe.

The FT depends upon financial advertising and as a consequence, must align itself with the culture and interests of its City-centric readers otherwise they would stop buying it. You are no more likely to find a serious analysis of the disaster caused by the shadow banking system, together with an argument for its dissolution in the FT, than an article in the Meat Trades Journal promoting vegetarianism.

This year Britain’s central bank has set UK’s lowest central bank interest rate for 315 years. As a consequence, since March, asset prices have commenced a new spectacular inflation.  This phenomenon and the tsunami of central bank created credit accompanying it, has rendered any conventional analysis of variable such as earnings per share and profit ratios (see Lex most days), irrelevant.

That is the news Lex!

No bun rating today, the elephant ate it.

Shouldn’t it be illegal to make such statements when they are unsupported by evidence?

“The pound slid to a 2½-month low against the euro and a six-week low against the dollar yesterday as dire business investment statistics raised fears that today’s gross domestic product figure would be worse than expected”  Quote from The Times today.

In fact if you look at the chart, you will see that the pound had been ‘sliding’ for some days before this data was announced. The story is dated 28th August but the pound began its decline against the euro on the 5th of August, when it was 85c.  It reached 86c on the 17th and continued  this  trend  to reach 88c on the 28th.