Ouch!: ignorance is bliss, except when it hurts

275 Pages·2012·4.039 MB·English

by  Knott, Paul

It’s time to wake up or get wiped out. Ignorance is bliss,
We live in a world dominated by a system except when it hurts…
that most of us aren’t aware of, never mind
understand. When it comes to money and
how it really works, most of us are too busy,
too bored or too bewildered to think about
it, despite being at the sharp end of the
consequences. We simply don’t recognise
the game that is being played out in front
of us. Well check your pockets; you’re in
for a nasty shock.
OUCH! is your entertaining answer to
financial fear, ignorance or confusion.
Quintessentially irreverent but with a deadly
serious message – ultimately it tells you
how to protect your hard earned cash and
save yourself from financial meltdown.
You can’t afford to ignore it.
P
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K
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£12.99 Co t
ve t What you don’t know about
PERSONAL FINANCE r d
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sig money and why it matters
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Visit our website at o
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www.pearson-books.com le
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Paul Knott
Ouch!

Ouch!
Ignorance is bliss,
except when it hurts
paul knOtt
Pearson education Limited
Edinburgh Gate
Harlow CM20 2JE
tel: [phone]
Fax: [phone]
Website: www.pearson.com/uk
First published in Great Britain in 2012
© paul knott 2012
the right of paul knott to be identified as author of this work has been
asserted by him in accordance with the Copyright, Designs and patents act
1988.
pearson Education is not responsible for the content of third-party internet
sites.
ISBn: 978-0-273-77292-7
British Library Cataloguing-in-Publication Data
a catalogue record for this book is available from the British library
Library of Congress Cataloging-in-Publication Data
a catalog record for this book is available from the library of Congress.
all rights reserved. no part of this publication may be reproduced, stored in
a retrieval system, or transmitted in any form or by any means, electronic,
mechanical, photocopying, recording or otherwise, without either the
prior written permission of the publisher or a licence permitting restricted
copying in the united kingdom issued by the Copyright licensing agency
ltd, Saffron House, 6–10 kirby Street, london EC1n 8tS. this book may
not be lent, resold, hired out or otherwise disposed of by way of trade in any
form of binding or cover other than that in which it is published, without
the prior consent of the publishers.
10 9 8 7 6 5 4 3 2 1
16 15 14 13 12
Designed by Design Deluxe
typeset in 10/13pt Sabon ltd Std by 3
printed and bound in Great Britain by ashford Colour press ltd, Gosport,
Hampshire
To Ken and Elva
For the love, the nurture and for just letting me get on with being
the rogue gene

Contents
About the author xi
Publisher’s acknowledgements xiii
Author’s acknowledgements xv
Introduction xvii
1 Show Me The Money – ItS OrIGInS anD
HOW It WOrkS 1
Money, that’s what I want 2
prehistoric transactions 2
Origin of faeces 5
the ultimate confidence trick 6
Empty promises 8
How fictional money is created 13
the most powerful force in the universe 17
taking advantage 20
the stupidity tax 21
Chequebook vandalism 23
viii OuCH!
2 ParalyTically incorrecT – WakE up tO
yOur rEalIty 29
paralytically incorrect 30
Follow the white rabbit 30
For richer, for poorer 32
De-railing the gravy train 35
a bit of a kerfuffle 45
3 FighTing inSTincTS – unDErStanDInG
HuMan BEHavIOur anD rISk 49
Fight, flight and blight 50
‘Oops!’ inside your head 51
the curious case of phineas Gage 58
pEts ‘r’ us 59
the paradox 60
abdication of responsibility 66
Baaaaaaaa 69
probability vs. uncertainty 71
Out of control 72
risk it, for a biscuit 74
predictable and irrational? 77
4 ignore everyone – StOp tHE prESS anD
JOIn tHE nOISE aBatEMEnt SOCIEty 79
porky pies 80
Why 97 per cent are wrong 81
Jaw on the floor 82
Sponge me down 85
Manufacturing consent 86
COntEntS ix
vested interest 87
analyse this 89
Illusion of knowledge 90
Seven deadly sins 91
Exceptions to the rule 93
5 rub My crySTal ball – tHE DISMal
SCIEnCE partIally DEMyStIFIED 95
rhyme on time 96
three house rules 96
How much? 102
Generational Dynamics 106
Dr Doom and the law of consequences 109
the orgy 111
Smack my bitch up 113
Morton’s Fork 116
6 MarkeT Dna – unDErStanDInG HOW tHE
MarkEt OpEratES 121
Fancy a coffee? 122
Meet the sentiments 123
Smart money vs. dumb money 125
It’s been emotional 129
Beauty contest 130
time horizons 133
asset allocation 135
Dividend and conquer 136
rip off 138
What’s eating you? 141