Hurrah for Her Majesty.
Why is the pound so strong at a time when the British economy clearly is not? Why is it that the UK has this bizarre “safe haven” tag when it is quite clear to everyone that we are anything but?
The answer, I think, is the Queen.
Yes, of course, we are benefiting from not being a member of the eurozone, but this is not enough per se. The Olympics may be taking all the headlines now that the torch is being trundled around the country, but internationally the Jubilee has much greater significance.
What better example is there of stability, safety and reassurance in the UK than that our sovereign has been in situ for 60 years? And no-one does pomp and circumstance quite like the British.
As a previously horribly left wing student, part-time pretend and trendy republican, I have to say now that our Royal pageantry is mighty impressive.
This may be a horrendous simplification but I am sure that, at a time when everything else appears to be falling apart around us, not least because the Governor of the Bank of England, Chancellor, Prime Minister and accompanying coterie are telling us that it is, there is no greater embodiment of what is good about this great country of ours than the Jubilee.
Which brings us to the hysteria surrounding Greece.
It really is time to turn off the televisions, radios, iPads et al.
There is absolutely no reason why Greece’s leaving the euro should cause a crisis. It is a very small economy and a return to the drachma can be managed quite simply without any great song and dance.
Regrettably, it appears there are too many vested interests in making this into not just a quick Cameron karaoke but a full blown Eurovision. So don’t take the Hump (at least he didn’t come last), this storm can be easily calmed.
The European Central Bank needs to announce a bank deposit guarantee scheme. We also need Europe-wide banking consolidation; takeovers of weak banks by stronger ones must be encouraged.
Confidence can be quickly restored if the politicians and bankers can get a fraction of their act together. If this crisis worsens, the blame lies with incompetent officialdom and not with markets.
* Jim Wood-Smith is head of investment research at Williams de Broe
