Fabian, I think you understate the potential problems coming for the Europeans on the back of their Green efforts. clearly, neither China nor India care at all about the green concept, with China merely taking advantage of their government supported manufacturing process to build things more cheaply than the west that the west wants but china doesn't. However, now with the Trump election, you can be sure that the US is not going to care about green issues at the government level, which means that European banks, if they are going to compete with US banks, will find themselves hamstrung by the needs of determining second and third order emissions while US banks will not need that.
On a separate note, you discuss the fact that GDP growth represents government spending for so many countries, and that is, of course, true in the US as well. how can one remove the G from the GDP equation to determine the value of private sector activity and growth?
I concur, Andy - the green efforts are a much bigger problem as anyone except Europe is chasing them - China, India, the US, you said it. I thought one could conclude that from the piece itself, but on the other hand, I feel a bit flattered by hearing I "understate problems" ;)
The fact I mention it is that while G can increase growth in the short-term, it can lead to dangerous long-term consequences. With the concept of GDP itself, I'd say it's a terrible measurement, but the best we have.
Thanks Fabian, very good exercise about our economical plagues.
Those are not only economical, imo, but put also question about our democracies
Thank you! I totally agree on that. We're on a very dangerous path that can politicians potentially could misuse very quickly.
Fabian, I think you understate the potential problems coming for the Europeans on the back of their Green efforts. clearly, neither China nor India care at all about the green concept, with China merely taking advantage of their government supported manufacturing process to build things more cheaply than the west that the west wants but china doesn't. However, now with the Trump election, you can be sure that the US is not going to care about green issues at the government level, which means that European banks, if they are going to compete with US banks, will find themselves hamstrung by the needs of determining second and third order emissions while US banks will not need that.
On a separate note, you discuss the fact that GDP growth represents government spending for so many countries, and that is, of course, true in the US as well. how can one remove the G from the GDP equation to determine the value of private sector activity and growth?
I concur, Andy - the green efforts are a much bigger problem as anyone except Europe is chasing them - China, India, the US, you said it. I thought one could conclude that from the piece itself, but on the other hand, I feel a bit flattered by hearing I "understate problems" ;)
The fact I mention it is that while G can increase growth in the short-term, it can lead to dangerous long-term consequences. With the concept of GDP itself, I'd say it's a terrible measurement, but the best we have.