Economics and Cookies

by Nomad

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OXI and Austerity: The Secret Historical Meaning of the Greek Referendum

by Nomad

In a nation like Greece, with its long and proud history, messages can be conveyed by symbolic acts that echo and invite comparisons. The recent Greek referendum was one of those events.

Many news commentators were mystified when the left-wing Greek Prime Minister Alexis Tsipras called for a nation-wide referendum on the European debt payback proposals. The attitude ran something along the lines that the Greek people had no authority to vote on such complicated issues. What was the point and what did any result actually mean?

I recall one of the reporters asking if the Greek people even understood what they were voting for. It was, they said, all too complicated an issue for the average citizen to understand. 

This was, it was implied, a matter for governments, not for citizens. Despite the fact, it was past administrations and armies of faceless bureaucrats that had engineered this experiment in austerity. Never mind that it was the people who would ultimately suffer under the proposed austerity measures, their opinion counted for nothing. 

True, there were people on fixed incomes, there were countless numbers of unemployed citizens that were entirely dependent on government support, there were large numbers of Greeks who had already suffered for the last five years from belt-tightening austerity.

According to the prevailing attitude expressed by some in the media, the opinion of these people counted for nothing.

The Browder Affair and the Death of Russian Economic Reform 3/3

by Nomad

Part One
Part Two

In this final installment of the series, we examine how foreign investor Browder was about to find out that Russia could be a very dangerous place to do business. In many ways, it was, for opportunity hunters of the West, to be the end of the fantasy of Russian reform.

By November 2005, Russian official had just about had enough of William Browder's crusade to clean up corruption. Officials in Moscow decided to demonstrate to this upstart from the West, this shareholder activist, who held all of the cards.

End Game

Returning from a business trip, Browder was denied re-entry at the Moscow airport. He suddenly found himself in the ridiculous position of having to do business in Russia as an exile. It was the beginning of the end with his love affair with Russia and his admiration for Putin.

After a decade of successful investments in Russia, Browder was blacklisted by the government and was officially listed as a "threat to national security." The reason for this, The Economist wrote, was actually because Hermitage had interfered with the flow of cash to "corrupt bureaucrats and their businessmen accomplices".

Browder exiled himself to London and was forced to pay $230 million tax bill.

In June 2007, the endgame began. As the head of the law firm representing Hermitage, Jamison Firestone later told reporters, dozens of police officers "swooped down on the Moscow offices of Hermitage and its law firm.