The Bankwatch

Tracking the consumer evolution of financial services

Piketty brings academic pragmatism to Greece debate

This interview with Thomas Piketty by Die Ziet is a landmark. As the interview rightly points out this 700+ page best seller has not been read beyond probably Page 26 by most of the purchasers. This is obvious to me by the book reviews.

However this interview has two main aspects of interest:

  1. it highlights some economic history, history meaning anything previous to the last quarter, and that in which most folks have no interest. This stuff is not in the history books. Economic history is boring and unless you read Niall Ferguson, Thomas Piketty, or Kenneth Rogoff will not mean much. His central point in this interview is that Germany has never re-paid their country debts. They have either inflated themselves out of debt or just plain not paid. In other words they have, in his view, no moral right to the position they take against Greece.
  2. there is a symbience between the European countries that require a symbiotic agreement to move forward. To take the Grexit approach would simply alert the Spains, Portugals, and Italys to the potential to save money by reneging.

This subject is important. Consider California or Michigan seceding because of their debts. A domino game would be set off that would result in chaos within currency markets. To bring it closer to home, going on vacation would become a currency guessing game.

I actually don’t like the Eurozone but I think its important for the future becuase it brings the world closer to economic similarity if not equivalence.

In closing the orginal Die Ziet interview on Medium has been closed due to

I am currently in touch with DIE ZEIT to ensure my compliance with German copyright law. Updates will follow very soon. The original German interview with Thomas Piketty can be found here

Clearly since this morning (July 6th, 2015) someone ‘big’ got to Piketty and/or Die Ziet. Piketty is not exactly on my side of the political fence but I admire him for his tenacious focus on research and facts.

Here is the English translation that has since been taken down.

Go Thomas Piketty.

Written by Colin Henderson

July 6, 2015 at 22:19

Posted in Uncategorized

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