Tag Archives: European Countries

12 Reasons Why Globalisation Is A Major Problem: Gail Tverberg | Economy Watch

12. Globalization ties countries together, so that if one country collapses, the collapse is likely to ripple through the system, pulling many other countries with it.

History includes many examples of civilizations that started from a small base, gradually grew to over-utilize their resource base, and then collapsed. We are now dealing with a world situation which is not too different. The big difference this time is that a large number of countries is involved, and these countries are increasingly interdependent. In my post 2013: Beginning of Long-Term Recession, I showed that there are significant parallels between financial dislocations now happening in the United States and the types of changes which happened in other societies, prior to collapse.  My analysis was based on  the model of collapse developed in the book Secular Cycles by Peter Turchin and Sergey Nefedov.

It is not just the United States that is in perilous financial condition. Many European countries and Japan are in similarly poor condition. The failure of one country has the potential to pull many others down, and with it much of the system. The only countries that remain safe are the ones that have not grown to depend on globalization–which is probably not many today–perhaps landlocked countries of Africa.

12 Reasons Why Globalisation Is A Major Problem: Gail Tverberg | Economy Watch

Secular Cycles: Peter Turchin, Sergey A. Nefedov: 9780691136967: Amazon.com: Books

Many historical processes exhibit recurrent patterns of change. Century-long periods of population expansion come before long periods of stagnation and decline; the dynamics of prices mirror population oscillations; and states go through strong expansionist phases followed by periods of state failure, endemic sociopolitical instability, and territorial loss. Peter Turchin and Sergey Nefedov explore the dynamics and causal connections between such demographic, economic, and political variables in agrarian societies and offer detailed explanations for these long-term oscillations–what the authors call secular cycles.

Secular Cycles elaborates and expands upon the demographic-structural theory first advanced by Jack Goldstone, which provides an explanation of long-term oscillations. This book tests that theory’s specific and quantitative predictions by tracing the dynamics of population numbers, prices and real wages, elite numbers and incomes, state finances, and sociopolitical instability. Turchin and Nefedov study societies in England, France, and Russia during the medieval and early modern periods, and look back at the Roman Republic and Empire. Incorporating theoretical and quantitative history, the authors examine a specific model of historical change and, more generally, investigate the utility of the dynamical systems approach in historical applications.

An indispensable and groundbreaking resource for a wide variety of social scientists, Secular Cycles will interest practitioners of economic history, historical sociology, complexity studies, and demography.

Secular Cycles: Peter Turchin, Sergey A. Nefedov: 9780691136967: Amazon.com: Books

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Will transform our analysis of societies 

January 24, 2012

Format:Hardcover

Peter Turchin is a highly respected evolutionary biologist who has specialized in the synthesis of theory and empirical data (see his book Complex Population Dynamics for his work in that area). He has now turned the skills he honed explaining animal societies to human societies, and particularly to explaining the rise and fall of empires. In broad terms I would describe his approach as Malthus meets Marx meets social constructionism meets evolutionary game theory. While his model is strictly applicable only to agrarian empires, his explanations of phenomena such rising income equality, intra-elite conflict, and even increased demand for university admissions, resonate so strongly with modern society that it is clear that a modified version of his model will go a long way towards explaining our current political and economic circumstances. There are few aspects of his work that are individually wholly new; Turchin’s contribution is a rigorous synthesis of historical case-studies with evolutionary theory and quantitative empirical evidence. His work has the potential to transform our understanding of “macro” social issues in the same way that behavioral economics has transformed our understanding of decision making at the “micro” level. I’ll go out on a limb and predict that Turchin will eventually win a Nobel prize in economics.

I’ll provide a quick overview of Turchin’s work, but this synopsis doesn’t do it justice; if you find my overview implausible, please read his books for yourself.

How groups manage to escape the prisoners’ dilemma and cooperate is a central question of evolutionary biology. Turchin argues that the social construction of “other” along meta-ethnic frontiers (which are often defined in terms of factors other than ethnicity, in particular religion), is necessary to enable group cooperation which allows empire building. This is why empires almost invariably arise along frontiers. A ruling class with a high potential for collective action (“asabiya” – a term Turchin borrows from the 14th century political philosopher Ibn Khaldun), will expand while financing its wars by taxing the peasants. In the early days of the empire, the elite are relatively austere warriors, and low population densities allow peasants to produce a significant surplus, so elite requirements do not overburden peasant production. As population densities increase, the surplus produced per peasant decreases because each has less land, but at the same time rents charged by the elites increase as land becomes scare. Peasants become poorer, though the elite continue to do well. Wealth inequality increases, and eventually the peasant base cannot sustain the high expectations of the growing elite population. Consequently, some of the elite class find themselves without land to sustain their lifestyle, while others become extremely wealthy due to control of scarce resources. This gives rise to intra-elite conflict. Social cohesion declines due to increasing inequality, both between elite and peasant classes and within the elite. The result is that peasants who are desperate and weakened by poverty are drawn into elite infighting. A combination of civil war, famine and plague reduces the population of the weakened state. The population decline ultimately leads to lower food prices and increased wages for the poor, but the loss of social cohesion is not so easily reversed. The recovery is thus impeded by continued infighting, and sometimes an outside group with higher asabiya takes over before another expansion phrase is triggered.

Turchin has three books developing his approach. “War and Peace and War: The Life Cycles of Imperial Nations” is the popular introduction. It describes the approach without any math or equations, and applies it to a range of historical empires. This is the place to start for a general introduction, particularly if you are not mathematically inclined. However, it is not formally rigorous and will not convince you if you are sceptical. “Secular Cycles” (with Sergey Nefedov) supports the theory with quantitative empirical data. It applies the model to two cycles in each of England, France, Rome and Russia. This is the book to read if you are comfortable with numbers and need to be convinced by empirical evidence. “Historical Dynamics: Why States Rise and Fall” provides the theoretical framework, discussing, for example, why an explanation of cyclical dynamics requires a feedback loop. It is quite mathematical, and while you don’t have to work your way through all the equations, you should be comfortable with mathematical models generally. Turchin’s model was inspired by Jack A Goldstone, “Revolution and Rebellion in the Early Modern World.” This is also an excellent book. It is written in a more traditional historical style; the model is informal, rather than formal, and the argument is supported by historical analysis of particular revolutions, rather than by quantitative data. In these respects it is similar to “War and Peace and War,” though it is substantially longer. If you are looking for an extended analysis in a more traditional style of social history, this a great book.

Secular Cycles: Peter Turchin, Sergey A. Nefedov: 9780691136967: Amazon.com: Books

Disarmed Europe will face the world alone – FT.com

One day the Europeans may find that the US is not there to deal with threats at their frontiers

In the 1970s, Mogens Glistrup, a prominent Danish politician, became famous for suggesting that his country replace its armed forces with a recorded message saying “we surrender” in Russian.

Glistrup is no longer with us but his approach to defence seems to be gaining ground. Europe’s ability to use military force is dwindling fast, and with it the power of Europeans to defend their interests around the world. It is true that there are many troops from European countries deployed in Afghanistan, and the French are in Mali. But, behind the headlines, military capacity is shrinking.

Disarmed Europe will face the world alone – FT.com

An Economic Path to Citizenship or Residency

Bulgaria has entered the growing number of European countries willing to offer citizenship in return for the purchase of property valued at BGN 600,000 (US$414,000) or an investment of at least BGN 500,000 (US$345,000) that creates 10 jobs.

Bulgaria Offers New Path To Citizenship | Investment

Residence Visas and Citizenship Are Up For Graphs in Many Countries | Sovereign Investor

The latest to join the residence/citizenship-for-sale list is Spain, where unemployment exceeds 20%. In an attempt to ease the debts crippling Spanish banks, the government will offer immediate residence rights to foreign property buyers who spend more than €160,000 (US$207,563).

Spain’s Iberian Peninsula neighbor, Portugal, got into the act last month when a new law was adopted that issues what is being called the “Golden Passport.” It enables investors from non-EU countries to gain residence if they transfer €1 million or more (US$1.3 million) in capital into the country, form a business that creates a minimum of 30 jobs, or purchase a property valued at a minimum of €500,000 (US$648,635).

Residence Visas and Citizenship Are Up For Graphs in Many Countries | Sovereign Investor

Struggling Caribbean islands sell a quick path to citizenship

Without leaving his home in the United Arab Emirates, the Palestinian man recently received a brand new Dominican passport after sending a roughly $100,000 contribution to the tropical nation half a world away.

“At the start I was a little worried that it might be a fraud, but the process turned out to be quite smooth and simple. Now, I am a Dominican,” said Mezawi, who like many Palestinians had not been recognized as a citizen of any country. That passport will help with travel for his job with a Brazilian food processing company, he said by telephone from Dubai.

Struggling Caribbean islands sell a quick path to citizenship

Israeli officials play down report of Iran-U.S. deal | Reuters

Israeli officials played down a report in an Israeli newspaper on Monday that accused Washington of secretly negotiating with Tehran to keep the United States out of a future Israel-Iran war.

Israel’s most widely-read newspaper, Yedioth Ahronoth, said Washington had approached Tehran through two unidentified European countries to convey the message that the United States would not be dragged into hostilities if Israel attacked Iran over its nuclear programme.

Israeli officials play down report of Iran-U.S. deal | Reuters

Ex-Revolutionary Guard member: Iran ready with terror plans to hit U.S. if Israel attacks – CBS News

He says these attacks are Iran’s version of a warm-up, in the event of a full conflict with Israel.

“They’re just sending signals that they are capable of, and the order is by Ayatollah Khamenei, the Iranian supreme leader that, should war break out, then all terror cells will become activated and attack major interests of America, Israel, European countries and even within America,” warns Kahlili, author of “A Time to Betray.”

But, given the number of alleged plots by Iran against Israeli targets, some analysts wonder why Iran would seem to keep provoking the very attack they say they want to avoid.

“The mindset of this organization that is the Iranian intelligence service and this government is not a Western mindset,” Mudd observes. “We see stability as a goal. They see instability and revolution as a goal.”

Ex-Revolutionary Guard member: Iran ready with terror plans to hit U.S. if Israel attacks – CBS News

EuroCrisis: Bank Fraud May Collapse the Euro – International Business Times

The widespread use of deposit guarantees and the use of EU Government Bonds as any form of security will directly lead to a collapse in the value of the Euro.

Devaluation seems the only real exit now for Europe, Germany again will be a huge winner from such a move.

Devaluation either by the ECB, the European Banks or the market is now the only option if the EU is to continue. A drop in the EU to USD rate to 80c would dramatically improve the trade deficit in the trouble countries and offer some hope to their desperate economies.

While the move would pressure the German trade surplus creating an inflation event in the small number of European countries that are still near full employment, it remains a better option than having an economic catastrophe in many of the EU member states.

Around Europe the situation is an Economic mess.

EuroCrisis: Bank Fraud May Collapse the Euro – International Business Times

For Russia, Nato has started an arms race – Telegraph

The Russian public believes the Nato alliance is playing a foul game that threatens the country’s security, says Yevgeny Shestakov.

Dmitry Rogozin, Russian deputy prime minister in charge of modernising the defence industry, posts daily progress reports on his Twitter page. Hundreds of billions of roubles are set aside for the defence programme, which is planned for decades ahead. But these staggering figures, which will affect the lives of future generations, give people a sense of pride rather than provoke dismay over money that could otherwise have been used for social programmes.

Opinion polls show that most Russians approve of the official plans to spend budgetary funds on modernising defence. Why? The answer is simple: the Russian public does not trust Nato, believing that the alliance is playing a game that threatens Russia’s security.

Nato’s refusal to recognise the world order and its demonstrative refusal to reckon with Russia’s geopolitical interests render meaningless any joint initiatives aimed at countering common threats. They merely fuel the arms race that many European countries want to avoid.

For Russia, Nato has started an arms race – Telegraph

What is the Russian policy on threats to its security? Oh yes, Russia reserves the right to launch a pre-emptive nuclear strike..

The Loneliest Superpower – By Minxin Pei | Foreign Policy

The rare foreign visitor to China during the Cultural Revolution often saw a huge placard at the airport boasting the farcical claim, “We have friends all over the world.” In truth, Maoist China — a rogue state exporting revolution and armed struggle around the world, and a bitter foe of the West and the former Soviet bloc — was extremely isolated. It had a few friendships with countries like Ceausescu’s Romania and Pol Pot’s Cambodia; for a few bleak years, China’s only true ally was tiny Albania.

Forty years later, a powerful and assertive Beijing has a lot more friends. Its economic presence is warmly welcomed by many governments (though not necessarily people) in Africa; European countries regard China as a “strategic partner,” and China has forged new bonds with leading emerging economies like Turkey, Brazil, and South Africa. Yet besides Pakistan, which depends on China for military and economic assistance, and which China supports mainly as a counterweight against India, Beijing has a shocking lack of real allies.

The Loneliest Superpower – By Minxin Pei | Foreign Policy

Italy’s Mosque Wars :: Stonegate Institute

Many of the mosque projects in Italy have been promoted by leftwing politicians, who are waging an ideological war with the Roman Catholic Church. As in many other European countries, multiculturalists in Italy hope that by promoting Islam, they will eventually succeed in destroying the country’s Judeo-Christian heritage.

Not surprisingly, most Italians are opposed to the idea of turning Italy into an Islamic republic. Polls show that many Italians view mosques as a “symbol of occupation and more than a third do not want a mosque in their neighborhood.

Public backlash over the construction of mosques picked up steam in 2006, when the multicultural mayor of Colle di Val d’Elsa, a picturesque Tuscan town situated on the road between Florence and Siena, decided his town would be the perfect location for Italy’s second-biggest mosque.

The town council, dominated by leftwing do-gooders, donated the land for the mosque, which is linked to the Muslim Brotherhood. Funding to the tune of €500,000 ($650,000) came from Monte dei Paschi di Siena, the oldest bank in Italy.

Italy’s Mosque Wars :: Stonegate Institute

In Bold Step, Europe Nears Embargo on Iran Oil – NYTimes.com

European countries have taken their boldest step so far in the increasingly tense standoff with Iran over its nuclear program, agreeing in principle to impose an embargo on Iranian oil, French and European diplomats said on Wednesday.

A final decision by the European Union will not come before the end of January and would be carried out in stages to avoid major disruptions in global oil supplies. But the move by some of Iran’s most important oil customers appears to underscore the resolve of Western allies to impose on Iran the toughest round of sanctions to date, increasing pressure on Tehran to stop enriching uranium and negotiate an end to what Western leaders argue is an accelerating program to build a nuclear bomb.

In Bold Step, Europe Nears Embargo on Iran Oil – NYTimes.com