Default Invariance: Naïve Category of Law and Finance

Default invariance is the idea that default does not change at any scale of law and finance. Default is a conserved quantity in a universe where fundamental principles of law and finance operate. It exists at the micro-level as part of the fundamental structure of every financial transaction, and at the macro- level, as a fixed critical point within the relatively stable phases of the law and finance cycle. A key point is that default is equivalent to maximizing uncertainty at the micro-level and at the macro-level, is equivalent to the phase transition where unbearable fluctuations occur in all forms of risk transformation, including maturity, liquidity and credit. As such, default invariance is the glue that links the micro and macro structures of law and finance. In this essay, we apply naïve category theory (NCT), a type of mapping logic, to these types of phenomena. The purpose of using NCT is to introduce a rigorous (but simple) mathematical methodology to law and finance discourse and to show that these types of structural considerations are of prime practical importance and significance to law and finance practitioners. These mappings imply a number of novel areas of investigation. From the micro- structure, three macro-approximations are implied. These approximations form the core analytical framework which we will use to examine the phenomena and hypothesize rules governing law and finance. Our observations from these approximations are grouped into five findings. While the entirety of the five findings can be encapsulated by the three approximations, since the intended audience of this paper is the non-specialist in law, finance and category theory, for ease of access we will illustrate the use of the mappings with relatively common concepts drawn from law and finance, focusing especially on financial contracts, derivatives, Shadow Banking, credit rating agencies and credit crises.

Telaprevir or boceprevir based therapy for chronic hepatitis C infection: Development of resistance-associated variants in treatment failure

The use of triple-therapy, pegylated-interferon, ribavirin and either of the first generation hepatitis C virus (HCV) protease inhibitors telaprevir or boceprevir, is the new standard of care for treating genotype 1 chronic HCV. Clinical trials have shown response rates of around 70–80%, but there is limited data from the use of this combination outside this setting. Through an expanded access programme, we treated 59 patients, treatment naïve and experienced, with triple therapy. Baseline factors predicting treatment response or failure during triple therapy phase were identified in 58 patients. Thirty seven (63.8%) of 58 patients had undetectable HCV RNA 12 weeks after the end of treatment. Genotype 1a (p = 0.053), null-response to previous treatment (p = 0.034), the rate of viral load decline after 12 weeks of previous interferon-based treatment (p = 0.033) were all associated with triple-therapy failure. The most common cause of on-treatment failure for telaprevir-based regimens was the development of resistance-associated variants (RAVs) at amino acids 36 and/or 155 of HCV protease (p = 0.027) whereas in boceprevir-based regimens mutations at amino acid 54 were significant (p = 0.015). SVR12 rates approaching 64% were achieved using triple therapy outside the clinical trial setting, in a patient cohort that included cirrhotics.

The Location of Cultural Authenticity: Identifying the Real and the Fake in Urban Guizhou

This article examines notions of cultural identity and authenticity and how these notions are articulated in the small city of Kaili in Guizhou Province, an ethnically diverse region. Despite its urban status, Kaili has been branded by the local government as a yuanshengtai tourist destination. This Chinese term literally translates as “original ecology” but is used in ordinary conversation to denote a cultural authenticity in which people exist in quiet harmony with nature. Promotional literature uses the term to tout the ethnic cultural practices that mainly occur in the villages of Kaili’s municipal periphery. In contrast, many local urban inhabitants—although amenable to the promotion of Kaili as a tourist destination—have rejected the notion that the city itself could be considered culturally authentic, and proudly declare themselves “fake” ethnic minorities, as against the “genuine” ethnic people of surrounding villages. These small-city inhabitants have also defined themselves against big-city visitors by attributing to the visitors a naïve fascination with cultural authenticity, while themselves remaining aloof from such practices. The cultural authenticity discourse in Kaili has thus facilitated a reordering of social and spatial hierarchies, as blasé small-city residents define themselves against both culturally authentic rural people and authenticity-seeking big-city tourists. In analyzing this, the article draws out the broader implications regarding PRC notions of ethnicity, cultural practices, heritage, and identity.