Back in the last real sterling crisis in 1967 – this month’s turmoil was only a political, not an economic crisis since floating exchange rates may not work very well but they work a dam’ sight better than fixed ones – Prime Minister Harold Wilson liked to blame everything on the Gnomes of Zurich: now the Wall Street Journal reveals that at least one of the major players in the foreign exchange market, Midland Bank Plc, the traders are using a new system that provides instantaneous forecasts and advice on each major currency by applying Chaos Theory – and it seems to let the Germans off the hook and put the blame for the market turmoil where it belongs, because the system was developed by Olsen & Associates, based in – yes, Zurich.
