Greece’s Dark Matter

Judging from the title of my new blog publication you will probably assume that you will further read about the universe’s mysteries, black holes, dark matter, etc. Far from that…the universe obeys to discovered and yet undiscovered laws of physics and the cosmos. Economies too are driven by the laws of economics which politicians do not consider as having the same weight and impact upon the markets and the lives of the people they govern.

Won’t keep you in anxiety more. The inspiration of this new blog entry title comes from recently reading an interesting interview by Ricardo Hausmann who has spent many years of his life researching & consulting on what went wrong with the economy of Venezuela.

Every country is different although the factors that help an economy grow or fade into recession follow similar patterns. Think for a moment about the current situation in Greece. I believe there is dark matter which works against all hopes of revival. First of all, Greece has not solidified a concrete and long term business plan on a national level that will drag its economy out of the recession and bring it back to normality. Current fiscal policies and overtaxation do not work in favor of accelerating the economy. They actually keep on destabilizing it while creating uncertainty for investments. Take the example of the following foreign companies that tried to do business in Greece and left because of bureaucratic struggles: China New Era, LKS Partners & Lockheed Martin, Las Vegas Sands, Vopak, Tesla, and many others (let’s see the outcome with Eldorado Gold).

Even if some parts of the government budget look positive for the markets, the ”dark matter” is there if you look more closely to the bitter economic indexes and statistical numbers.

Ricardo Hausmann observed that fiscal policies in Venezuela spurred contractions in the economy. Rings a bell? Yes, Greece’s governments have managed over time (lost) to adjust fiscal policies without realizing the policies were working against the economy’s real growth. Even the access for Greece to borrow money from the international markets took a long time and still investors are not feeling confident. Thus Greece is not reflecting confidence to borrow money at bad times.

Greece is also in a position that cannot handle its public debt which the IMF is repeatedly positioning as non-sustainable. According to Hausmann, emerging economies are not able to handle their surmounting debt and often lead their economy to fails. Greece is not an emerging economy (maybe pragmatically returning slowly to this phase) but is going through a state at which the country is not able to monitor its public debt and hopes the IMF will align their policy with EU’s bureaucrats and offer debt forgiveness by cutting it down.

Greece needs a collective effort to attract scientists, entrepreneurs, or people that can offer productive knowledge which can bring added value to new products & services. Otherwise, the dark matter lurking will be driving the economy to repeated failures while politicians will be looking to outside factors to explain the economic hurdles, same as the notorious dark matter in the universe is observed by its effect on its surrounding stars.

Stathis Kassios
Web Entrepreneur & Business Consultant

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Assorted links by Cyber Consultant

How the World Has Changed From 1917 to 2017 

CHANGE IS NOT A ONCE IN A WHILE THING ANYMORE

Tech, Transport, Tourism, Transformation — What To Know About The Sharing Economy In Africa

H καλύτερη εφαρμογή για τις μετακινήσεις σας

One of the latest international projects I have developed, Sloa Camp. Sloa Camp will bridge students from Asia with universities in Europe and USA.

0 % corporate tax within the EU – Bulgaria. Contact me for an introduction to Innovires Business & Legal Consulting Office.

Future Match 2017. March 20-24 Hanover, Germany. 

 

 

Assorted links

moovit newsletter January 2017: http://us3.campaign-archive1.com/?u=c24727311fc31f651cff01770&id=2decc8dda6

traders out, computer engineers in: https://www.technologyreview.com/s/603431/as-goldman-embraces-automation-even-the-masters-of-the-universe-are-threatened/

innovires legal & consulting business office: https://www.facebook.com/innovires/

a nice interview with economist Gita Gopinath for world trade, currency wars, etc. https://www.mpls.frb.org/publications/the-region/interview-with-gita-gopinath

5 reasons why Greek businesses should move to a paperless – digital office: https://sevdesk.gr/blog/paperless-office-greece/

SaaS startup phenomenon globally: http://buff.ly/2hx5DT5

what is entrepreneurship?: http://www.domeniconicolo.it/2017/01/04/transforming-the-potential-value-of-goods-services-and-locations-real-value-added/

vc backed us companies: https://www.facebook.com/photo.php?fbid=10210401845234556&set=a.2137724174767.2116328.1596004607&type=3

Assorted links by Cyber Consultant – October 2016

Tips From A Local Expert: Explore Athens, Greece On Public Transit – http://moovitapp.com/blog/tips-athens-transit/

Cloud office for Greek freelancers & small business owners – https://sevdesk.gr/

The new world of mobility – https://techcrunch.com/2016/10/10/the-new-world-of-mobility/

Aspects of Internet of Things (IoT) – http://marginalrevolution.com/marginalrevolution/2016/09/from-the-comments-on-cyberattacks.html

Spotify in Talks to Acquire SoundCloud (Report) – http://variety.com/2016/digital/news/spotify-soundcloud-acquisition-report-1201873039/

The Characteristics Of The Most Attractive SMB SaaS Companies – http://tomtunguz.com/ideal-smb-saas-company/

Using behavioral science to improve the customer experience – http://www.mckinsey.com/business-functions/operations/our-insights/using-behavioral-science-to-improve-the-customer-experience

My predictions for 2016. Trends in a globally connected world.

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Dear readers,

Time flies. It’s this time of the year again that I would like to share with you my predictions & trends for 2016.

– The sharing economy platforms like Uber, Airbnb, Lyft, etc. are not only disrupting current business models, they are also creating jobs and generating income for unemployed or even low paid people. These platforms establish a new type of professional life away from the norms of current & old labor laws and traditional employment. See this research for referenece: http://mercatus.org/publication/evaluating-growth-1099-workforce

Internet of Things: we hear & read more and more about the Internet of Things (IoT) and how our lifes will be transformed hopefully for the better. All electronic devices that we use daily will be connected to each other and with the world wide web, collecting and exchanging huge amounts of data that have to make sense and offer practical advantages. The IoT is predicted to have a $13 trillion impact on the global economy. Imagine vehicles, house devices, company offices, factories & work sites, all riding the connectivity wave and creating smarter and more efficient products & services. See this article by McKinsey: http://www.mckinsey.com/insights/high_tech_telecoms_internet/preparing_it_systems_and_organizations_for_the_internet_of_things

Social media & education: these global online networks will play a pivotal role in how people present themselves online. The networks people will be creating matter for the information they share thus education will also be networked online. Maybe we get to see more social networks popping up as with over 3 billion users globally using laptops, smartphones, tablets, more networks will be created to serve these people’s needs. Think poor countries for example where a smartphone connected to the internet, will be a great way to be educated, communicate personally & professionally, gain knowledge of the world outside of the local boundaries that sometimes corrupted governments impose.

Artificial Intelligence: Machines are getting smarter with all the big data we feed them. Will machines help us in the future or take over our lives and destroy millions of jobs in the various industries and sectors of the economy? http://www.wired.co.uk/magazine/archive/2015/11/features/wired-world-2016-alain-de-botton-artificial-emotional-intelligence

Intelligence: due to the fast pace of digital connectivity, a vast amount of information and data becomes available to public organizations, research centers, private companies. As we are building the Everest of data, we carefully have to monitor the intelligence spurring from the top of the mountain which will benefit humanity, eliminate the ”noise” (bad data that don’t make sense) and reduce risks that would appear if sensitive data becomes available to the wrong hands. Organizations and companies will have to protect their data through strong cybersecurity measures and proactive implementation of advanced system security & architecture.

3D Printers: 3D printing will lead the very essence of technological & manufacturing disruption across all kinds of industries, using new materials to construct or replicate products in pharmaceuticals, bio-industry, industrial design, space exploration, house building, etc.

Global growth: according to IMF (International Monetary Fund) the global economy is expected to grow in 2016 by 3.6, expecting a calm growth for Europe, the same growth as last year’s for USA and a bit slower for Canada. The riddle of growth will go to China as nobody can actually predict what is happening in this giant economy due to the lack of trust in their statistics. India will continue to grow strong while Japan returned to recession. Recurring global currency wars and the domestic currencies of Latin American countries will create problems in their development.

Greece’s Debt continues to increase, probably in a non-sustainable way. Much has been discussed in global news & media for ways to make it more sustainable and decrease the burden of imposing more austerity measures. The co-founder of Hellene.gr, Sheridan Tatsuno, has published an article on ways for Greece to develop its economy beyond its debt through tourism, exports, technology outsourcing: http://hellene.gr/news/beyond-greeces-debt-trap/

Balkan countries have started providing important business incentives by setting zero taxes for new companies as a way to invite entrepreneurs from other countries. This is what I call long term strategic thinking and planning. See the example of Albania: http://digjitale.com/2015/11/zero-taxes-for-startups-in-albania/

Geopolitical risks: Independent of the exciting news coming from technology, the political problems in countries like Syria, the general turbulence in the Middle East, the involvement of different powers with different interests, will remain a threat for the global markets (refer to the EU stock market indexes when Turkey shot down a Russian jet). The world will also be watching the US presidential election campaign because of the different policies the elected leader will follow on terrorism, homeland security and foreign policy matters.

Because of the interconnectedness of the global economy, national problems become international (see the Chinese stock market crash & repercussions), altering capital flows & investors sentiment. The monetary policy of FED & ECB on interest rates will also play an important role for global growth and development.

My personal wishes to you for health, wealth and happiness in 2016!

Stathis Kassios
Hellene.gr Co-founder
Moovit Operations Consultant Greece
Web Consultant & Economist

 

More taxes more austerity

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The current problems of the Greek government are directly related to decreasing public expenditures through imposing more and more taxes upon its citizens and domestic economy. Under constant pressure from EU’s bureaucrats in order for Greece to receive a new round of loans and re-capitalize its banks, the limited time left to find alternative sources for tax revenues, create a hostile environment for the private sector and the real economy.

Imbalances in the government’s budget, negatively distort the real economy. Companies remain non-competitive because of the amount of taxes they have to pay and because they can not be financed in a healthy way anymore.  Even if a myopic political party achieves to present a significant decrease in the government’s deficit, it can irreversibly hurt thousands of small and medium size businesses, further increase unemployment and establish a new problematic status quo for the employer (more taxes and insurance contributions) – employee relationship (short term job contracts, uncertainty in the workplace, etc.).

There is only one way to properly increase tax revenues and this is the adoption of a national plan for the economy’s growth which can return the fruits of real job creation and enough tax revenues to positively shift Greece’s government budget imbalances and deficits. Greece needs a sustainable tourism and agricultural industry that creates jobs, exports new products & services and pays a fair amount of taxes similar to other developed countries. Imposing more taxes with the side effect of enlarging an existing black market, will only extend the austerity.

In times like the ones that Greece is going through, the cost of desperately attempting fiscal consolidation means Greece’s GDP will continue to decrease and the official unemployment statistics increasing.

Stathis Kassios
Co-founder of Hellene.gr
Operations Consultant Moovit Greece
Economist & Web Consultant
Image source: http://touchstoneblog.org.uk/

Greek Population, You Have a Unique Chance! – by Anette Pekrul

Hellene.gr

Hellene.gr

Dear Greek Friends,
I promised three Greek fighters for a change to the better, Stathis, Sheridan and Christiana to write down the thoughts I have for all of you and your country. We met on the internet and it think it is no coincidence. I don't believe in coincidences, because I love the greek history, the country, its philosophers and YOU, the people. So it was also no coincidence, that you, the population, had to face this tremendous crisis. This crisis is your chance! It is your chance to have the biggest influence and the greatest achievements you may not yet be able to imagine. I am convinced, you will lead your country out of the crisis into a SUSTAINABLE and RESILIENT future. As a humanist I am focused since many years, actually since decades, on how to change the world to the better and I was working hard, thinking and fighting a lot, but I always had the feeling that I could not help, move or achieve enough until one day I remembered a quote of Socrates which is:

„The secret of change is to focus all of your energy not on fighting the old, 

but on building the new.” 


This wisdom changed everything: my thinking and concepts, my energy and my progress. But still I had many single concepts not yet realized. Looking on all the solutions I created for changing education system, Co2-reduced living, re-creating  important social values like respecting elderly people, organic nutrition, talent support for kids, lifelong learning, changing media system to a high quality information system, create more financial equality, strengthening civic society and strengthening democracy believing in the opportunity of world freedom and a positive future for humanity and our planet ...

Those were all concepts which were single and standing alone they did not have a big chance for success. The second insight was: ALL BELONGS TOGETHER!  And that was the key for me to create a new living and housing system including all the concepts and providing the INFRASTRUCTURE for the change to the better. (www.balance4yourlife.org) This new holistic living and housing concept can be adapted to your country or the concepts implemented to your villages and cities. One small part of the new education system is on the road, we just launched the website: www.netteachers.com. Hopefully, we manage this successfully and then bring to Greece ... These are concepts I am working on - also for YOU! I am so happy that the internet provides the opportunity to share my thoughts and work with you. If your friends Christiana, Sheridan and Stathis would not have shared their thoughts on the internet we would most probably not have met.

I love the "Hellene" concept and share and support as much as I can. And if everybody of us looks at his/her talents, potentials and opportunities and USE them, if we all stick together, trust each other and focus on building  the new by co-working and sharing we will succeed together. For a better today and a better,  sustainable and RESILIENT tomorrow for the future generation. You are not alone! Let's take care and action!

Love, Anette

To connect with Anette, Greek entrepreneurs and creatives, join Zorba The Entrepreneur:

https://www.facebook.com/groups/zorba.the.entrepreneur/