Atonement - All The Glisters Is Not Gold

Atonement, starring Keira Knightley, opened this year’s Venice Film Festival. A galling tale of perception and deceit, it has at its core Shakespeare’s message from The Merchant of Venice, “All that glisters is not gold.” Gold has passed out of fashion, but with some analysts predicting prices of $1000 an ounce, the Gold Standard is making a return.

Shylock would have scorned Northern Rock, accused and applauded the Bank of England in suitable measure, and suffered greatly with a daughter such as Knightley’s character ‘Cecilia’, ensnared by confusion and an unrelenting tide of events.

Ms Knightley’s publicist would punch out weight-loss denials at mere mention of a pound flesh, but could do little to assuage concerns that financial markets are anorexic. Markets are currently adjusting to ongoing sub-prime turbulence, but it is a play on words.

Innovation and increasingly perfect information have conspired to encourage risk-taking. This will continue. The banking system relies no longer on strolls along elegant Venetian canals to gauge risk and weigh opportunity. In an instant, risk is calculated.

Investors seeking to avoid “moral hazard” will have taken no comfort as the United Kingdom’s Chancellor guaranteed the savings of Northern Rock customers. Politicians can no longer serve a ruling class. Economic growth depends on the perceived wealth of voters, their capacity to borrow and spend, their provision of tax revenue and electoral success.

We believe what we want to, what we need to. Economics is a confidence trick, gold is actually worth nothing. The current “crisis” is little more than an adjustment; perhaps a little painful for a time, but the markets will recover, and move on, for there is much to be gained from confusion and swimming with the unrelenting tide of events. When it comes to the economy, there is no atonement. It is a work of fiction.”

Nicolas Sarkozy - French Business Reborn

"Europe, in legend,” said Daniel Bell, “has always been the home of subtle philosophical discussion; America was the land of grubby pragmatism.” Enter Nicolas Sarkozy, President of a new France, not a man for all seasons, but chief executive of a radical agenda.

Socialist Segolene Royal’s defeat brought hope and opportunity for the resurrection of France’s enterprising might, and with it – through Sarkozy’s victory - another engine to power an accelerating European market.

Sarkozy’s radicalism is founded not merely in grubby pragmatism – he is bent on the destruction of the 35-hour French working week – but in subtle political discourse.

The hyperactive workaholic threatened to take a power hose to aggressive and neglected arrondisment, he’s keen on early morning jogs with his Cabinet, and is as socially inclusive as he is fiscally savvy. If you haven’t done business with France, now is a good time to start. Sarko is bringing the McDonald’s approach to French business. The socialists have had their chips.