On 7/17/15 9:15 AM, Patrick Bond wrote:
> Was it genuinely impossible to arrange a Grexit given complex logistics
> of introducing a drachma?

I don't know why I keep having to point this out but the conversion to a 
drachma is not the issue. ATM machines can be stocked with newly minted 
bills within a month.

Instead the issue is transforming a nation's IT infrastructure to handle 
the new currency. It is ACCOUNTING systems, TRADING systems, PURCHASING 
systems, etc. that have to be retooled. It took YEARS for the drachma to 
euro conversion to be implemented within such systems. What makes you 
think that it would not take years to reverse engineer?

Just one example. Computer systems are almost certainly filled with 
logic that is looking for some hard-coded value such as "if order_amount 
 > 1000, then perform order_limit_rtn". If a new currency makes such 
logic inapplicable, then chaos will ensue.

The basic problem is not in and of itself technical. It is more a 
question of business systems analysis, the first stage in a project life 
cycle. I had been involved with both the business and the technical side 
of such projects for more than 40 years, including a number that crashed 
and burned. For example, I spent 3 years designing an account management 
system for Goldman-Sachs. Not a year after this system, which was part 
of a suite of new IBM mainframe software to replace dated Burroughs 
based software, management realized that it was already behind the curve 
and began a new major project to adopt Unix-based client server systems.

Large-scale DP projects are marked by delay. Let me repeat that. Delay 
is typical in any major undertaking. When management used to tell us 
that they expected something up and running in 2 years, we always 
understood that it would take 4 years.

In my view, the only people who get this are Yves Smith, who managed 
large scale DP projects even though her background is primarily on the 
business side, and Nathan Tankus whose dad has a background like mine. 
In addition, Nathan is very much on top of the "interface" problems 
involved with a currency switch. This is very hairy stuff.
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