Will the many “General Data Protection Regulation” profiteers help or stand in the way of a better future for our grandchildren?

Sir, Richard Waters writes that “Europe’s new online privacy regime is a gravy train for lawyers and consultants, and it has kept IT departments and compliance officers working late for months [and] it is likely to take an onslaught…from privacy activists” “Brussels forces online reckoning by setting high bar on privacy” May 25.

That raises a question: Will that mean a better future for my grandchildren, or will it just extract value from what has been developed, making what’s to be developed more distant and expensive?

Waters also writes: “One Silicon Valley figure argues: if users were able to capitalise the future value of personal data like this that they will throw off over a lifetime, it would turn out to be one of their most valuable assets”. I have argued a similat the thing with letters sent to FT… but I have also indicated the possibility that all the web and social media added monetary value, could be used to fund a Universal Basic Income, a sort of Human Heritage Dividend.

Personally, scared of some “Big Brother Is Watching You” joint ventures between data gatherers and goverments coming into fruition, I prefer allowing development to run its full course to see where it takes us. 

Sir, I just do not feel sure enough about taking development limiting decisions on behalf of my grandchildren. Do you? 

https://teawithft.blogspot.se/2015/09/ad-blockers-do-not-allow-any.html

PS. If social media is to be fined, then have all the fines help to fund Universal Basic Income schemes. What we absolutely do not need, is to have social media (ambulance) chasers, redistribution profiteers, like a European Commission, or similar, capturing these.

@PerKurowski

Easing it for some bureaucrats, like with munis, does mean, de facto, making it harder for other, like entrepreneurs and SMEs

Sir, John Dizard writes “a bipartisan bank regulation reform bill that has passed a crucial Senate committee would require the entire federal regulatory apparatus to loosen the restrictions on counting munis as part of the high-quality liquid assets pool, and reduce the capital charges on holding muni positions.” “Vix horror show will not deter future suckers” February 19.

Sir, that would lead to more demand for munis, so that local bureaucrats can decide what to do with even more funds derived from debts our grandchildren will have to pay; which will naturally lead to less bank credit for those entrepreneurs and SMEs that could help our grandchildren to access jobs and revenues streams that could assist them in repaying these munis... and having a life. Great bipartisan job Senators! 

@PerKurowski

Universal Basic Income seems to be the most neutral and efficient tool to handle the unknown upheavals the use of artificial intelligence and robots will bring.

Sir, Rana Foroohar writes: “A McKinsey Global Institute report out on Wednesday shows that, while digitalisation has the potential to boost productivity and growth, it may also hold back demand if it compresses labour’s share of income and increases inequality.” “Why workers need a ‘digital New Deal’” February 19.

That sure seems to make the case for a Universal Basic Income, a Social Dividend, both from a social fairness angle and from the perspective of market efficiency.

To preempt that really unknown challenge at hand, Foroohar proposes something she names “the 25 percent solution” based on how Germany tackled an entirely different problem, the financial crisis. What it entails makes me suspect it could risk reducing the growth and productivity that could be achieved, and waste so much of the resources used to manage the consequences, so that only 25 percent, or less, of the potential benefits of having artificial intelligence and robots working for us would be obtained.

I worry sufficiently about a possible new Chinese curse of “May your grandchildren live with 3rd class robots and dumb artificial intelligence”; to also have to add “May your grandchildren have to serve the huge debt derived from technocrats defending your generation from artificial intelligence and robots.

Sir, I had more than enough of besserwissers trying to defend us and when doing so causing much more harm. Like when regulators, full of hubris, promised “We will make your bank system safer with our risk weighted capital requirements for banks”.

http://myubi.blogspot.ca/2017/01/my-universal-basic-income.html

@PerKurowski

My Industrial Policy would be to try having the best robots, and the most intelligent artificial intelligence

Sir, I refer to Rana Foroohar’s “Wanted: an industrial policy for America” May 8.

The 2007/08 financial crisis resulted from excessive exposures to what had been perceived, decreed or concocted as safe, those assets which therefore regulators allowed banks to hold against very little capital. Examples: the AAA rated securities backed with mortgages to the subprime sector and loans to sovereigns like Greece.

That should have been more than enough proof that, distorting the allocation of bank credit to the real economy with risk weighted capital requirements for banks, was not the way to go. But they all left it at that. As a consequence, only because they were as “risky” discriminated against by bank regulators, perhaps hundred of thousands SMEs and entrepreneurs have since then gotten their requests for bank credit rejected, or priced much higher. So Foroohar’s referencing an “Obama administration playbook” as especially favorable to job creation, sounds way out of place.

Yes, it is great that any government focuses its interest on job creation, but sometimes it must also give considerable thought to what to do if those jobs are nowhere to be found. That is why some years ago I wrote: “We need worthy and decent unemployments”.

I am against protectionism but, at this particular moment, if it were up to me, I would protect all learning and developing opportunities that could help my grandchildren to have access to the absolutely best robots and absolutely most intelligent artificial intelligence.

That is because if they don’t have it, they will benefit less or, in order to compete, have to work much harder for less than others.

That is because the Chinese curse “May your children live in interesting times”, might soon be upgraded to “May your grandchildren live surrounded by 3rd class robots, and dumb artificial intelligence”. 

PS. Sir, my granddaughters are Canadian so this message is in fact directed more to Mr. Trudeau than to Mr Trump.

PS. Again, please FT you who are so without fear, dare to ask regulators the questions below and dare learn the truth.

http://subprimeregulations.blogspot.com/2016/12/must-one-go-on-hunger-strike-to-have.html

PS. Then in 2023 I discovered OpenAI – ChatGPT. And boy could artificial intelligence help empower a citizens’ democracy. That is if, of course, if #AI regulators allow it. It could endanger their current Bureaucracy Autocracy.

 

@PerKurowski

Until now any excesses in the use of power by President Trump would pale when compared to those of bank regulators

Sir, Gillian Tett writes: “Trump has managed to make the US constitution a live topic of debate…. the White House’s immigration clampdown… has created a real-time lesson on the limits of presidential power… The concept of “checks and balances” is no longer something written about in a school exam but instead is being breathlessly discussed on breakfast television… It is one thing to squeal with fury about the actions of the White House but what is badly needed is for voters (and journalists) to exercise a similar scrutiny over the operations of Congress and the judiciary, not to mention the lobbyists. “Our teenagers stand to profit from their awakening” February 18.

Sir, someday perhaps some grown-up grandchildren will awake and say: “During decades the risk weighted capital requirements gave banks incentives to refinance the “safer” past and present, and not to finance the riskier future we sorely needed to be financed. As a consequence many millions of SMEs and entrepreneurs around the world were denied that bank credit that could have created a new generation of jobs for us. Granma, please tell us you did not know anything about this, and yet said nothing”

@PerKurowski

Shame on you bank consultants! For a quick buck, you sacrifice the future of our children and grandchildren

Sir, Laura Noonan reports: “Post-crisis consultancy spending soars to $200bn”, December 7.

Clearly that must be the cause why otherwise brilliant consultants, like those of the high powered consultancy firm McKinsey & Company, keep absolutely mum on the fact that regulators, with their risk weighted capital requirements for banks, are dangerously distorting the allocation of bank credit to the real economy.

With it, banks no longer finance the “riskier” future but only keep to refinancing the “safer” present and past.

With it, banks finance basements where jobless kids can live with their parents, but not the SMEs and entrepreneurs who could create the jobs the kids need in order for them to have a chance to become responsible parents too.

Since those bank consultants must also have children and grandchildren to who they owe great responsibility, I can only say: Shame on you!

@PerKurowski

Banks “throw yourselves back into life” and dare visit the risky bays that our grandchildren need explored.

Sir, Philip Delves Broughton writes: “Economists often miss all the peripheral activity that might actually answer their questions. Professor Robert Gordon, the American economist, has been arguing recently that the US is in an innovation lull… an age of innovative trivia such as Facebook and Pokémon Go. Add the headwinds of poor demographics, a fouled-up education system, debt and inequality, and America is headed for an era of low growth.” “Let facile optimism change the world”, July 16.

Indeed the economists have entirely missed the distortion in the allocation of bank credit to the real economy produced by the risk weighted capital requirements for banks. These, by favoring the access to credit of those ex ante perceived as safe, de facto discriminate against the access to bank credit of those perceived as risky, like SMEs and entrepreneur; and so they have completely overlooked one of the main causes of innovation and economic lull. How this serious oversight has happened remains a great mystery to me. But, then again, since FT has been able to ignore the thousands of letters I have send it over the years to FT on this, there might be some dark forces at work.

Delves Broughton ends with: “The problem is that you cannot write “throw yourself back into life” on a prescription pad” Yes you can! You could at least write: “Banks throw yourself back into life, don’t dangerously and uselessly overpopulate safe havens, and dare explore the risky bays that our grandchildren need explored. 

PS. Free us from imprudent risk aversion

@PerKurowski ©

Bank regulators are financially advising Europe as that “grandmother” Pope Francis considers Europe now is

Sir, Tony Barber in his essay “State of the Union” of May 28 writes: 

“Pope Francis pulled no punches in November 2014 when he addressed the European Parliament on the EU’s deepening malaise. “In many quarters we encounter a general impression of weariness and ageing, of a Europe which is now a ‘grandmother’, no longer fertile and vibrant. As a result, the great ideas which once inspired Europe seem to have lost their attraction, only to be replaced by the bureaucratic technicalities of its institutions,” the pope said.”

Well if Europe is now a grandmother, then the credit risk adverse bank regulations could be perfectly appropriate; in fact any financial advisor, advising a grandmother should advice her something similar... or he would be disqualified.

But I know, for a fact, that Europe is now no longer fertile and vibrant, was turned into a grandmother, partly because regulators, with bureaucratic technicalities, do not allow banks to take those risks the young need to be taken, in order to keep the economy fertile and vibrant, and so that they could also have a better future.

Europe, if a good grandmother, should not permit the Basel Committee to regulate banks hurting its grandchildren. Let us all pray for that Europe has not turned into a bad and egoistical grandmother.

@PerKurowski ©

Grandparents need to be very careful with grand-parenting classes arranged by their children.

Sir, I refer to Gillian Tett’s “When looking after baby is too serious to be left to experience” December 6.

According to an old saying, the reason why grandchildren and grandparents get along so well... is that they share a common enemy. And, in this respect, it should be clear that any grandparent who is offered a “grandparenting class” arranged by their children, should be very careful indeed.

Whenever I hear my child complaining about mine and my 3 year old grandchild’s behavior, I know everything is as it should be… or, at the very least, as I like it to be.

Financial Times

Another very dark side of the technological revolution.

Sir, Gillian Tett in “Mobiles are ringing the global changes” August 11, refers to “dark side of this technological revolution”. 

Indeed, when I was a young boy, in a boarding school in Sweden I sent my parents, living in Venezuela, about one letter every six months. When receiving the letter, about one month later, they’ve read it, and concluded “Per is ok”, and then they were calm for the next six months, or more. Nowadays, if any of our three daughters do not message us within sort of hourly intervals, from around the corner, my wife and I go into a frenzy. And I truly fret the moment my 11 months grandchild gets her mobile device… what a stress!

Do we dare to answer?

Sir Thrainn Eggertsson in his “Long-term consequences may be ruinous for Iceland” October 28, is really asking us… “Is Iceland not better off following the Argentina route? If our sons and daughters were from Iceland, do we dare to answer that question?