Joseph Mariathasan
6 comments By Joseph Mariathasan
Fascinating article on an increasingly important area.
Andrew, I fear you did not read the article properly. At no point does it equate bitcoin with all crypto-currencies and the fact that others are not mentioned does not imply they don’t exist!
Whatever the logic behind that may lie behind the phrase “… an asset that channels finance to a new form of organisation, a decentralised application ” the reason retail investors are buying crypto assets is because they think they will make a fast buck. Initial coin offerings are predicated on having a naïve investor base who thinks every new opportunity will replicate bitcoin! In contrast, the technology behind blockchain is interesting and valuable. But it is not clear as yet that it will be a game changer for the world.I agree! - The existential problem for Greece is how it can be integrated long term into the family of Western democracies. With hindsight, many things should have been done differently. But throwing the baby out with the bathwater now is probably not going to be the best solution. If the Eurozone collapses in the long term, as it may well do, so be it. But can Greece establish a stable and prosperous society regardless is the issue.
It is also contributing to a misalignment of resources with pension funds continuing to invest in low yielding sovereign debt even though equity yields are higher and provide real yields as against nominal. Exactly the reason why George Ross Goobey of the UK's Imperial Tobacco Pension fund started the shift to equities by the UK's pension funds during the 1950s.
There appears to be little if any debate on the impact of error margins on the analysis of assets and liabilities which should be a critical aspect of any supposedly "scientific" methodology.Greece certainly needs to have hope, but is Philip correct in assuming only Grexit can give it that?
For Greece to stay in the Euro, debt has to be written off. But that raises two issues: what will the impact of that be on other countries e.g. Ireland, Spain etc that have managed to get through the crisis without writing off debt and are reluctant to allow Greece that luxury; Secondly, can Greece reform its structures to enable effective tax gathering, retirement and pensions for public sector workers that are not seen as excessive relative to other EU countries?
The current set of negotiations, if they can even be called that, do not seem to be leading anywhere. The danger may be an accidental Grexit that benefits no one.1. Cooking the books has not been restricted to Greece. – Other countries including some would argue France, have also done so.
2. The article suggested that both the EU and Greece would have been better off if Greece had not joined the Euro. Is that in doubt? There was no suggestion that Greece should not have joined the EU.
3. See quote “Tsar Nicholas I was the traditional champion of the Greek Orthodox, who insisted on Russia being confirmed by the Porte as the protector of the Holy Places and of all Orthodox Christians in the Ottoman Empire.” - See more at: http://www.historytoday.com/richard-cavendish/crimean-war-begins#sthash.VjpnQnel.dpuf
4. The 1000 year link with Russia is cultural. – Christianity and indeed the Russian alphabet were introduced by Byzantine monks following on from Saints Cyril and Methodius.
5. There was a civil war in Greece post the second world war, with Greek communists supported by Yugoslavia and Albania as well as Bulgaria. It was not a war between Greece and the USSR. The left still has a strong presence and support in Greece as the election of Syriza shows.
6. The argument that is being made is that the EU is a political construct whose prime purpose is to ensure peace in Western Europe. Undertaking actions that threaten to drive Greece into close economic and possibly political ties with Russia is not in the EU’s interests in that respect. That should trump the economic issues.
Commented on: 14 May 2021
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