tag:blogger.com,1999:blog-8764541874043694159.post833116242852818443..comments2024-03-28T12:23:39.665+00:00Comments on Coppola Comment: Mario Draghi and the Holy GrailFrances Coppolahttp://www.blogger.com/profile/09399390283774592713noreply@blogger.comBlogger49125tag:blogger.com,1999:blog-8764541874043694159.post-60310500984855008692015-07-06T19:04:17.862+01:002015-07-06T19:04:17.862+01:00Cig, I'm a casual reader here but let me agree...Cig, I'm a casual reader here but let me agree with Ms Coppola. She's hitting the nail in the head. The national, mother country's identity system, that system forged in the 18th and 19th centuries, is still the foundation of our identities and belongings, the real ones that would make us take arms and die to defend our mother country's borders. A German or Belgian soldier would die on the Spanish southern border but only because his/her mother country, Germany or Belgium, belongs to a common alliance with Spain. Europe is not yet a real "identity provider of last resort" and it's ultimately for that that a Hambug average taxpayer is not ready to foot the bill of his/her Athenian fellow European the way a New Yorker would do for a New Orleanser. The European identity is not so much stronger than feeling Westerner or feeling human. It's still in the easy and light section of the "identities" shelf. And there's a stronger reason for this identity will hardly be sustained and promoted. Just think about this. Which would be the equivalents of the Oregon or Arizona states in a would be European United States? Not Germany or Spain but Bavaria and Andalusia. National parliaments and governments would actually become pointless. Of course they could survive but as lame ducks, as fake congresses, being the real power actually exercised at regional and federal level. Which national parliament or government would ever sign its own suicide? The entire Euro adventure is flawed for this primal political and social issue. The Euro is a mockup currency for a ghost mother country never to become real, at least in the foreseeable future. Lone Peregrinehttps://www.blogger.com/profile/09317748067665456622noreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-34222183000338232992015-06-21T09:58:38.189+01:002015-06-21T09:58:38.189+01:00> Frances
Would you care to make a comment h...> Frances<br /><br /> Would you care to make a comment here about this video - https://www.youtube.com/watch?v=kMC_Ns4sJSw<br /><br />Dinerohttps://www.blogger.com/profile/14632385731642361211noreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-90430374353765855732015-06-21T09:56:24.714+01:002015-06-21T09:56:24.714+01:00This comment has been removed by the author.Dinerohttps://www.blogger.com/profile/14632385731642361211noreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-44450981189542200362015-06-20T17:55:59.651+01:002015-06-20T17:55:59.651+01:00Obat Eksim
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Obat ...<a href="https://obateksimdenature.wordpress.com" rel="nofollow">Obat Eksim</a><br /><a href="https://obatkencing.wordpress.com/" rel="nofollow">Obat Kencing Nanah</a><br /><a href="https://obatkeputihandenature.wordpress.com" rel="nofollow">Obat Keputihan</a><br /><a href="http://obatkeputihanterbaru.blogspot.com/" rel="nofollow">Obat Keputihan Paling Aman Dan Manjur </a><br /><a href="http://obateksimdenature123.blogspot.com/" rel="nofollow">Obat Eksim Denature 100 % Herbal </a><br /><a href="http://obateksimterbaru.blogspot.com/" rel="nofollow">Obat Eksim Paling Ampuh Mampu Mengatasi Eksim Dengan Cepat </a><br /><a href="http://obatkewanitaanterbaru.blogspot.com/" rel="nofollow">Obat Kewanitaan Yang Aman Dan Manjur 100% Herbal</a><br /><a href="http://obatambeienterbaik.blogspot.com/" rel="nofollow">Obat Ambeien Terbaik Yang Ampuh Tanpa Efek Samping</a><br /><a href="http://obatambeienterbaik.blogspot.com/" rel="nofollow">Obat Ambeien Terbaik Yang Ampuh Tanpa Efek Samping</a><br /><a href="http://obatgonoreterbaik.blogspot.com/" rel="nofollow">Obat Kencing Nanah Atau Gonore Paling Terpercaya</a><br /><a href="http://obaiwanhttps://www.blogger.com/profile/01653313870079281391noreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-67438107499607991512015-06-20T16:37:37.532+01:002015-06-20T16:37:37.532+01:00Here is a puzzle that I do not understand:
When E...Here is a puzzle that I do not understand:<br /><br />When ECB lends to Greece, Greece can spend and ECB has a bond. Two pieces of wealth property have been created. Restated, the people who receive money from Greece have a deposit or cash and ECB has a bond.<br /><br />Now Greece may default on the bond making it worthless (?). One part of wealth has been destroyed. The second part of wealth (the deposit or cash part) remains in the economic system.<br /><br />The ratio of deposits and cash to the remaining financial property (and all property (I would think)) would change to make the remaining property more valuable. (A smaller inventory of financial property is balanced with an unchanged amount of deposits and cash)<br /><br />MMTers maintain that money is created when bank loans are made and de-created when the loans are repaid. Does failure of the loan (bond) leave money (in the form of cash and deposits) as a residue that will never be destroyed?Roger Sparkshttps://www.blogger.com/profile/01734503500078064208noreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-63848331219680730132015-06-20T15:18:04.250+01:002015-06-20T15:18:04.250+01:00There may indeed be some cultural bias in the form...There may indeed be some cultural bias in the formation of my view, as there is in yours. Doesn't make me wrong, or you right. Frances Coppolahttps://www.blogger.com/profile/09399390283774592713noreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-67522871212726595512015-06-20T12:02:00.441+01:002015-06-20T12:02:00.441+01:00As far as I know the marking of origin is effectiv...As far as I know the marking of origin is effectively identifying the print works, not the NCB liability -- that is a given NCB's share of the euro paper cash liability is not equal to the number of euros coming from the printing plant(s) that this NCB manages on behalf of the ECB.<br /><br />In any case, the "Greek" euros are circulating via tourists and travel so there's lot of "Greek" euros in non-Greek pockets, and conversely (some tourist euros no doubt find their way into Greek cash machines). It would be completely suicidal for the ECB to start de-recognising paper money based on serial number, so it's not gonna happen.cighttp://commentisglee.wordpress.com/noreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-32750059949748095302015-06-20T11:40:14.513+01:002015-06-20T11:40:14.513+01:00I was suggesting there may be some cultural bias i...I was suggesting there may be some cultural bias involved in the formation of your opinion. If you ask 100 Brits interested in this if there's sufficient European identity for federalism to work, 3/4 or more will agree with you that there isn't. If you ask 100 mid-continentals, you'll get a majority the other way. We're all looking at the same facts, so there's some obvious cultural bias involved here. I don't think discussing biases is unfair. I like my own biases challenged too!<br /><br />Back to your actual objections, they are about seeing a glass half empty, where we federalists see a glass half full.<br /><br />To take only the example of the rise of nationalist movements, I see that as part of European identity formation. The median UKIP supporter may not (yet) see themselves as a deep European, but they behave, think and vote very similarly to the median FN or Pegida supporter, for probably very similar reasons, which I don't think have that much to do with nationalism or racism as such. Discontent with mediocre political elites with no vision, a general malaise about their place in a changing world, the decline of Christianity, etc, are probably more relevant than nationalism and are universal issues in Europe (and beyond). But you can't really start a political party based on a "Down with General Malaise!" programme can you? So you need some sort of straw man to channel the fear, and well that's an easy one. In any case, whatever motivates and explains these movements, it's very clear they are extremely similar, reflecting people who have more in common than they are apart.cighttp://commentisglee.wordpress.com/noreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-74017714641402896532015-06-20T00:03:36.182+01:002015-06-20T00:03:36.182+01:00Good point. The Greek Euro is already well on the ...Good point. The Greek Euro is already well on the way to becoming a separate currency. Frances Coppolahttps://www.blogger.com/profile/09399390283774592713noreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-60596148282862520152015-06-20T00:02:54.774+01:002015-06-20T00:02:54.774+01:00And the Austro-Hungarian empire, too?And the Austro-Hungarian empire, too?Frances Coppolahttps://www.blogger.com/profile/09399390283774592713noreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-41320790801112982092015-06-20T00:01:06.821+01:002015-06-20T00:01:06.821+01:00Hi Matt,
I agree with you to a considerable exten...Hi Matt,<br /><br />I agree with you to a considerable extent. The Eurozone crisis - which is very far from over - should properly seen as the European dimension of the 2008 financial crisis. It is, therefore, fundamentally about banks. <br /><br />Having said that, the failures of regulation, supervision, monetary and fiscal policy that you highlight are themselves due to the lack of adequate institutions. And the lack of adequate institutions is due to the incomplete and poorly designed monetary union. And that, in turn, is because the designers of the Euro thought that political and fiscal union would follow from monetary union. It is now clear that they must precede it. <br /><br />The fact that Greece lied to gain entrance to the Euro, and everyone knew it was lying at the time but later pretended ignorance when the lies were exposed, says an awful lot about the politics behind this set-up. There is also some evidence that the "truth" about Greece's deficit is itself a lie. I am not joking when I say the Euro is founded on lies. And this DOES matter. Frances Coppolahttps://www.blogger.com/profile/09399390283774592713noreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-69548269844418490902015-06-19T23:43:37.642+01:002015-06-19T23:43:37.642+01:00"For my money, Greece should have left long a..."For my money, Greece should have left long ago - indeed it should never have joined. We know that Greece lied its way into the Euro. But equally, it was lied to. It was promised a golden future. Instead, it got destruction of competitiveness, unsustainable debt and a deep, prolonged depression."<br /><br />That is not the fault of the currency as such but the fault of supervision of the banking system which allowed credit bubbles in the periphery countries, allowing incomes to raise beyond productivity gains. The fact that credit bubbles developed is the fault of the banking system's supervisors - and the people in charge of monitoring inflation. The ECB. It is the fault of the EU not adhering to its 60%/3% rules on debt/deficit.<br /><br />So it has nothing to do with Greece "lying". It is a supervisory failure of EU institutions, and mainly the unregulated under-capitalized financial sector. <br /><br />matt_ushttps://radicaleconomicthought.wordpress.com/noreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-91485980636996807732015-06-19T12:43:30.258+01:002015-06-19T12:43:30.258+01:00Bring back the Maria Theresa ThalerBring back the Maria Theresa ThalerDemetriushttps://www.blogger.com/profile/17198549581667363991noreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-62451822699254682962015-06-19T11:32:10.763+01:002015-06-19T11:32:10.763+01:00The Greek people are rapidly withdrawing euros fro...The Greek people are rapidly withdrawing euros from their banks. Are all of these withdrawn euros marked as "printed in Greece" ?<br /><br />If they are, then following a Greece euro exit, each 'Greece euro' could be discounted when used in foreign trade. The Greek people would see no change so long as the 'Greece euros' were used within Greek borders.<br /><br />Roger Sparkshttps://www.blogger.com/profile/01734503500078064208noreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-38010996090463299952015-06-19T09:17:17.160+01:002015-06-19T09:17:17.160+01:00Alternatively it looks like it would be a straight...Alternatively it looks like it would be a straight forward matter to have the commercial bank's reserve accounts at the ECB and have settlement there. The Euro NCBs could still be involved in management for the euro system.Dinerohttps://www.blogger.com/profile/14632385731642361211noreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-11046426595899731802015-06-19T05:01:40.489+01:002015-06-19T05:01:40.489+01:00"True, it could develop - after all, America ..."True, it could develop - after all, America managed to forge a common identity from a warring collection of disparate states. But Europe has 3,000 years of conflict and bloodshed to overcome, including the two most terrible wars in the history of the planet and some of the greatest atrocities. Fear of another war is not sufficient to overcome the deeply rooted differences of culture, custom and identity between - and indeed within - the countries of Europe."<br /><br />Isn't this the true heart of the matter? If the EU project fails, given its specific genesis, will it be because the EU's leadership and their constituents will have failed to embrace its intended scope and scale?<br /><br />Pragmatic realism is not at odds with the vision and execution of the EU project, it's a matter of perspective: https://www.goodreads.com/work/quotes/1816628-a-pale-blue-dot<br /><br />3,000 years of conflict and bloodshed are precisely why differences must be overcome. Problems of the 'artificial' currency were hardly unforeseeable. Perhaps, the Euro was always intended to be the catalyst. The question is will leadership rise to the occasion? The EU needs its Lincoln. grayhttps://www.blogger.com/profile/04266038221479669766noreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-68649361960958948782015-06-19T04:06:41.389+01:002015-06-19T04:06:41.389+01:00Given the choices they had, the EU's course to...Given the choices they had, the EU's course to date is still preferable to what the US went through to achieve its national identity and a federal structure. So too did the US founders make, at the time, difficult choices that later compounded into problems of much deeper consequence.<br /><br />Transfer union, relinquishment of national sovereignty, accountable Federal representation, rule of law (and enforcement) civil rights - all of these things will eventually be addressed in due course - or they won't. This is what makes what happens next so critical. As Ambrose Evans Pritchard said, Grexit very well may be the EU's political Lehman's. grayhttps://www.blogger.com/profile/04266038221479669766noreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-3222013195787393982015-06-19T02:19:49.190+01:002015-06-19T02:19:49.190+01:00well said.well said.grayhttps://www.blogger.com/profile/04266038221479669766noreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-27414951363422233452015-06-19T01:58:05.222+01:002015-06-19T01:58:05.222+01:00I don't mind calling the 1960 franc a new curr...I don't mind calling the 1960 franc a new currency, but in any case this was a simple redenomination, where the entire monetary base is converted at a fixed rate, and both new and old units are from the same issuer.<br /><br />This is not equivalent to the Russian 1993 case where the Russian state stopped recognising the Soviet rouble other than a very limited (apparently the 35000/person was $35, which must have made up a small proportion of the Soviet rouble monetary base) tender offer to bootstrap cash, closely associated with a political change where the issuer disintegrated (as not only the issuer sponsor state vanished, but printing presses in the successor states had started operating without central coordination).cighttp://commentisglee.wordpress.com/noreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-18717006128840417982015-06-18T23:41:29.830+01:002015-06-18T23:41:29.830+01:00That reference to my Britishness is more than slig...That reference to my Britishness is more than slightly unfair. I made it clear in my posts on Scotland that I regard my identity as English, British and European. I don't regard European and national identities as mutually exclusive and I don't think states should have to give up their national identities. <br /><br />My argument that there is insufficient European identity to support a federal structure is based on the behaviour of states across Europe: the growth of nationalist movements, the criticism of people in Eurozone periphery states by people in core countries (and vice versa) - which at times borders on racism - and the reluctance of EU (not just Eurozone) countries to offer assistance to states experiencing problems, including problems that are not of their own making. The present refugee crisis in Greece and Italy is a fine (and disgraceful) example of this. Frances Coppolahttps://www.blogger.com/profile/09399390283774592713noreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-48601940958897533402015-06-18T23:34:07.352+01:002015-06-18T23:34:07.352+01:00Hmm, not sure I would agree that a state replacing...Hmm, not sure I would agree that a state replacing its currency with another under the same name can be regarded as creating an entirely new currency. When France redenominated the franc in 1960, was that creating a completely new currency? Frances Coppolahttps://www.blogger.com/profile/09399390283774592713noreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-34539358075777813912015-06-18T23:30:51.351+01:002015-06-18T23:30:51.351+01:00JKH,
I don't deny how the accounting works. I...JKH,<br /><br />I don't deny how the accounting works. I deny its significance. <br /><br />Trade deficits (or capital flight) resulting in real public sector debts is a legacy of the gold standard. After the Nixon shock in 1971, De Gaulle threatened to send gunboats to America to recover the gold he considered France was owed by America because of America's trade deficit - which under Bretton Woods required an outflow of gold from America to its trading partners. Reinhart & Rogoff defined the suspension of the gold standard in 1933 as a US sovereign default because of the US's failure to honour its gold obligation to Panama: the US eventually settled this in 1936. R&R only list "selected" sovereign defaults for later periods, but using their criteria it would be hard not to regard the Nixon shock as a sovereign default as well. Link is here: http://www.nber.org/papers/w13946.pdf<br /><br />Neither Bretton Woods nor the interbellum gold standard were single currency systems. They were badly-designed specie flow systems. For some reason - the designers of the Euro have imposed a similar badly-designed specie flow system on a single (fiat) currency. In fact this version is even worse, since the automatic generation of liquidity in the system encourages destabilising flows of private sector capital and distorts real interest rates. <br /><br />Why on earth do we want to take such an insane system of trade accounting seriously?Frances Coppolahttps://www.blogger.com/profile/09399390283774592713noreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-67929502718200099342015-06-18T22:59:55.798+01:002015-06-18T22:59:55.798+01:00This comment has been removed by the author.Frances Coppolahttps://www.blogger.com/profile/09399390283774592713noreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-32587151666582342762015-06-18T22:51:43.698+01:002015-06-18T22:51:43.698+01:00Thanks. I have adjusted that sentence. Thanks. I have adjusted that sentence. Frances Coppolahttps://www.blogger.com/profile/09399390283774592713noreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-4139235542740118342015-06-18T22:51:09.766+01:002015-06-18T22:51:09.766+01:00Neil, this is the heart of the matter. The design ...Neil, this is the heart of the matter. The design of Target2 reflects the underlying lack of trust between Eurozone countries, the competitive rather than cooperative nature of the relationship between them, and their determination to hang on to their national identities. That's why I say the Euro is not a single currency. The commitment to mutual support and cooperation that sharing a currency requires is simply not there.Frances Coppolahttps://www.blogger.com/profile/09399390283774592713noreply@blogger.com