It worries that people get their economics from The Guardian

Perhaps not as much as the idea that The Guardian employs economic journalists who manage this:

What’s behind the record FTSE 100 high?

Hopes of a UK interest rate cut and easing geopolitical tensions are not the only reasons for the intraday peak reached this morning

Indeed, not the only reasons at all.

We did read through the ideas offered and were most surprised (well, this is The Guardian so perhaps the “most” is not wholly true) to find that the most obvious reason was not mentioned.

The FTSE100 index is not inflation adjusted. Therefore as money becomes worth less - because people insist on producing more supply than there is demand, obviously - therefore that index rises.

The FT had the good grace to point this out even if only as an afterthought.

There is also this:

Paul Marshall, the boss of the £40m ($55bn) hedge fund Marshall Wace

If that was the current exchange rate then that would produce a record high in the FTSE100, yes. But then those glory days when the subeditors knew more than the journalists are long, long, gone.

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