Thursday, June 23, 2011
Free trade - Wikipedia, the free encyclopedia
Free trade - Wikipedia, the free encyclopedia
In literature
The value of free trade was first observed and documented by Adam Smith in The Wealth of Nations, in 1776.[2] He wrote,
- "It is the maxim of every prudent master of a family, never to attempt to make at home what it will cost him more to make than to buy (buy vs. build). . . If a foreign country can supply us with a commodity cheaper than we ourselves can make it, better buy it of them with some part of the produce of our own industry, employed in a way in which we have some advantage."[3]
This statement uses the concept of absolute advantage to present an argument in opposition to merchantilism, the dominant view surrounding trade at the time, which held that a country should aim to export more than it imports, and thus amass wealth.[4] Instead, Smith argues, countries could gain from each producing exclusively the good(s) in which they are most suited to, trading between each other as required for the purposes of consumption. In this vein, it is not the value of exports relative to that of imports that is important, but the value of the goods produced by a nation. The concept of absolute advantage however does not address a situation where a country has no advantage in the production of a particular good or type of good.[5]
This theoretical shortcoming was addressed by the theory of comparative advantage. Generally attributed to David Ricardo who expanded on it in his 1817 book On the Principles of Political Economy and Taxation,[6] it makes a case for free trade based not on absolute advantage in production of a good, but on the relative opportunity costs of production. A country should specialize in whatever good it can produce at the lowest cost, trading this good to buy other goods it requires for consumption. This allows for countries to benefit from trade even when they do not have an absolute advantage in any area of production. While their gains from trade might not be equal to those of a country which is more productive in all goods, they will still be better off economically from trade than they would be under a state of autarky. [7][8]
Theories of Imperialism
Unification of Germany - Wikipedia, the free encyclopedia
The formal unification of Germany into a politically and administratively integrated nation state officially occurred on 18 January 1871 at the Versailles Palace's Hall of Mirrors in France. Princes of the German states gathered there to proclaim Wilhelm of Prussia as Emperor Wilhelm of the German Empire after the French capitulation in the Franco-Prussian War. Unofficially, the transition of most of the German-speaking populations into a federated organization of states occurred over nearly a century of experimentation. Unification exposed several glaring religious, linguistic, social, and cultural differences between and among the inhabitants of the new nation, suggesting that 1871 only represents one moment in a continuum of the larger unification processes.
The Holy Roman Empire of the German Nation, which had included more than 300 independent states, was effectively dissolved when Emperor Francis II abdicated (6 August 1806) during the War of the Third Coalition. Despite the legal, administrative, and political disruption associated with the end of the Empire, the people of the German-speaking areas of the old Empire had a common linguistic, cultural and legal tradition further enhanced by their shared experience in the French Revolutionary and Napoleonic Wars.European liberalism offered an intellectual basis for unification by challenging dynastic and absolutistmodels of social and political organization; its German manifestation emphasized the importance of tradition, education, and linguistic unity of peoples in a geographic region. Economically, the creation of thePrussian Zollverein (customs union) in 1818, and its subsequent expansion to include other states of theGerman Confederation, reduced competition between and within states. Emerging modes of transportation facilitated business and recreational travel, leading to contact and sometimes conflict between and among German-speakers from throughout Central Europe.
The model of diplomatic spheres of influence resulting from the Congress of Vienna in 1814–15 after theNapoleonic Wars endorsed Austrian dominance in Central Europe. However, the negotiators at Vienna took no account of Prussia's growing strength within and among the German states, failing to foresee that Prussia would challenge Austria for leadership within the German states. This German dualism presented two solutions to the problem of unification: Kleindeutsche Lösung, the small Germany solution (Germany without Austria), or Großdeutsche Lösung, greater Germany solution (Germany with Austria).
Historians debate whether or not Otto von Bismarck, the Minister President of Prussia, had a master plan to expand the North German Confederation of 1866 to include the remaining independent German states into a single entity, or whether he simply sought to expand the power of the Kingdom of Prussia. They conclude that factors in addition to the strength of Bismarck's Realpolitik led a collection of early modern polities to reorganize political, economic, military and diplomatic relationships in the 19th century. Reaction to Danish and Frenchnationalism provided foci for expressions of German unity. Military successes—especially Prussian ones—in three regional wars generated enthusiasm and pride that politicians could harness to promote unification. This experience echoed the memory of mutual accomplishment in the Napoleonic Wars, particularly in the War of Liberation of 1813–14. By establishing a Germany without Austria, the political and administrative unification in 1871 at least temporarily solved the problem of dualism.
The Japanese Empire & Its Allies
- 3 months ago
Unification of Germany - Wikipedia, the free encyclopedia
Rise of German nationalism under the Napoleonic System - Hitler's nationalism (National Socialist party) rose from rebellion under French tyranny.
Under the hegemony of the French Empire (1804–1814), popular German nationalism thrived in the reorganized German states. Due in part to the shared experience (albeit under French dominance), various justifications emerged to identify "Germany" as a single state. For the German philosopher Johann Gottlieb Fichte,
The first, original, and truly natural boundaries of states are beyond doubt their internal boundaries. Those who speak the same language are joined to each other by a multitude of invisible bonds by nature herself, long before any human art begins; they understand each other and have the power of continuing to make themselves understood more and more clearly; they belong together and are by nature one and an inseparable whole.[3]
A common language may have been seen to serve as the basis of a nation, but, as contemporary historians of 19th century Germany noted, it took more than linguistic similarity to unify these several hundred polities.[4] The experience of German-speaking Central Europe during the years of French hegemony contributed to a sense of common cause to remove the French invaders and reassert control over their own lands. The exigencies ofNapoleon's campaigns in Poland (1806–07), the Iberian Peninsula, western Germany, and his disastrous invasion of Russia in 1812 disillusioned many Germans, princes and peasants alike. Napoleon's Continental System nearly ruined the Central European economy. The invasion of Russia included nearly 125,000 troops from German lands, and the loss of that army encouraged many Germans, both high- and low-born, to envision a Central Europe free of Napoleon's influence.[5] The creation of such student militias as the Lützow Free Corps exemplified this tendency.[6]
The debacle in Russia loosened the French grip on the German princes. In 1813, Napoleon mounted a campaign in the German states to bring them back into the French orbit; the subsequent War of Liberationculminated in the great battle of Leipzig, also known as the Battle of Nations. In October, 1813, more than 500,000 combatants engaged in ferocious fighting over three days, making it the largest European land-battle of the 19th century. The engagement resulted in a decisive victory for the Coalition of Austria, Russia, Prussia, Sweden and Saxony, and it ended French power east of the Rhine. Success encouraged the Coalition forces to pursue Napoleon across the Rhine; his army and his government collapsed, and the victorious Coalition incarcerated Napoleon on Elba. During the brief Napoleonic restoration known as the 100 Days of 1815, forces of the Seventh Coalition, including an Anglo-Allied army under the command of theDuke of Wellington and a Prussian army under the command of Gebhard von Blücher, were victorious atWaterloo (18 June 1815).[7] The critical role played by Blücher's troops, especially after having to retreat from the field at Ligny the day before, helped to turn the tide of combat against the French. The Prussian cavalry pursued the defeated French in the evening of 18 June, sealing the allied victory. From the German perspective, the actions of Blücher's troops at Waterloo, and the combined efforts at Leipzig, offered a rallying point of pride and enthusiasm.[8] This interpretation became a key building block of the Borussian myth expounded by the pro-Prussian nationalist historians later in the 19th century.[9]
File:German Reich1.png - Wikipedia, the free encyclopedia
Franco-Prussian War - Wikipedia, the free encyclopedia
The Franco-Prussian War or Franco-German War, often referred to in France as the 1870 War[7] (19 July 1870 – 10 May 1871) was a conflict between the Second French Empire and the Kingdom of Prussia. Prussia was aided by the North German Confederation, of which it was a member, and the South German states of Baden, Württemberg and Bavaria. The complete Prussian and German victory brought about the final unification of Germany under King Wilhelm I of Prussia. It also marked the downfall of Napoleon III and the end of the Second French Empire, which was replaced by the French Third Republic. As part ofthe settlement, the territory of Alsace and part of Lorraine was taken by Prussia to become a part of Germany, which it would retain until the end of World War I when it was returned to France in the Treaty of Versailles.
The conflict was a culmination of years of tension between the two nations, which finally came to a head over the issue of aHohenzollern candidate for the vacant Spanish throne, following the deposition of Isabella II in 1868. The public release of theEms Dispatch, which played up alleged insults between the Prussian king and the French ambassador, inflamed public opinion on both sides. France mobilized, and on 19 July declared war on Prussia only, but the other German states quickly joined on Prussia's side.
It soon became evident that the Prussian and German forces were superior, due in part to their efficient use of railways and the better Krupp steel artillery. Prussia had the fourth densest rail network in the world; France had the fifth.[8] A series of swift Prussian and German victories in eastern France culminated in the Battle of Sedan, at which Napoleon III was captured with his whole army on 2 September. Yet this did not end the war, as the Third Republic was declared in Paris on 4 September 1870, and French resistance continued under the Government of National Defence and later Adolphe Thiers.
Over a five-month campaign, the German armies defeated the newly recruited French armies in a series of battles fought across northern France. Following a prolonged siege, Paris fell on 28 January 1871. The siege is also notable for the first use of anti-aircraft artillery, a Krupp piece built specifically to shoot down the hot air balloons being used by the French as couriers. Ten days earlier, the German states had proclaimed their union under the Prussian king, uniting Germany as a nation-state, theGerman Empire. The final Treaty of Frankfurt was signed 10 May 1871, during the time of the Paris Commune uprising of 1871.
What Grandaddy Never Told Me, That He Told My Grandmother About Credit & Conservation
Enter the Age of Conservation
For Immediate Release
contact: Jan Lundberg - tel. (707) 826-7775
Please feel free to reprint the following op-ed editorial, with accompanying language stating that the piece "originally appeared in The San Francisco Chronicle on May 6, 2001."
And when cheap oil runs out...
Enter the Age of Conservation
by Jan Lundberg, Sunday, May 6, 2001
"Conservation is not a sufficient basis for a sound, comprehensive energy policy." - Vice President Dick Cheney on May 1.
A new society based on conservation and renewable energy is in the offing, and sooner than you might think. Why? Petroleum is running out. Yes, I know you've heard that before, but the truth is that fossil fuels are no longer economically justifiable and are a sure path to destruction. In discounting conservation as a major component of a national energy policy, Vice President Dick Cheney and President Bush have denied stark reality.
It would be nice to just ignore today's energy policy as irrational. Any grade-schooler knows the Earth contains only so much petroleum. But, in refusing to institute a rational policy, we are losing precious time for a successful transition to sustainable energy. This has implications for everyone: an acceleration in global warming, rising costs of gasoline and electricity, an increasingly toxic lifestyle.
As the White House has undoubtedly heard, under the most optimistic scenario the oil reserves in the Arctic National Wildlife Refuge would fuel the U.S. car fleet for less than two years. Did that fact just go in one ear and out the other? Or do Dick and George not care to understand energy except from an oil-patch partisan stance?
Several decades ago, drilling and pumping oil in the United States was amazingly energy efficient: it took one barrel of energy to extract 50. Today, however, for new U.S. wells it takes on average about one barrel to get another. Despite rises in costs such as extraction, oil prices are still low because of government subsidies. That's helped fuel demand. Supply is another matter.
U.S. oil production peaked three decades ago. As soon as global oil production peaks in the next several years, the ensuing down-slope will not be gentle.
Demand, with world trade relying on oil for shipping, is about to meet ever- shrinking supply. Estimates of when this shortfall is to hit put it quite possibly during Bush's tenure at the White House. Time to switch to natural gas? Natural gas is on a bell curve of depletion similar to oil. As for coal, it is the least attractive fossil fuel - not just from the pollution standpoint.
There is not much anyone can do about the energy picture except conserve to the max, even with a concerted all-out effort to encourage the use of renewable energy. Even though renewables will be vital, they don't have high net-energy ratios, and renewables do not yield much in the way of asphalt, tires, pesticides and other pillars of industrial living, that oil does for consumers. The size of our population puts us way out on a limb of petroleum dependence.
The end of abundant, cheap oil means the end of our culture of overconsumption. This is where alternative-living solutions come in. With locally based trade and cooperative survival strategies, some of us will withstand the loss of those trucks coming regularly to the supermarkets. We may learn to love using just one-tenth of the energy we use gluttonously today instead of ranting about the high cost of gasoline and electricity. We will be sharing appliances, gardening in former driveways and traveling less. Lives will not be lost wholesale to car crashes and disease from exhaust fumes. It is going to be a vastly different culture - unimaginable to today's die-hard fossil consumers.
George Bush and Dick Cheney may make decisions, but the dwindling supply of petroleum will soon emerge as the real driver. Meanwhile, the planet's climate is going awry. We must leave the fossils behind and embrace the new Age of Conservation.
###
Jan Lundberg formerly published the Lundberg Letter on oil trends. He now directs the Sustainable Energy Institute, P.O. Box 4347, Arcata, CA 95518. Tel.1-707-826-7775. On the web at http://www.culturechange.org
World War II Conservation Posters - Sierra Club
World War II Conservation Posters
Click on the thumbnails above to see the whole poster.
The story behind the pictures: When Uncle Sam Wanted Us
All posters are from the collection of Northwestern
University Library.
"Ration oil during war — Or is this a War on Conservation?"
Ration oil during war
— Or is this a War on Conservation?
by Jan Lundberg
If the U.S. is waging a "War on Terrorism," federal energy policy would reflect that the war is not a "war for oil." Even if what we've had is a war of terror (nothing new, if you ask Indo-Chinese victims of U.S. shock-n-awe), that's not exactly a war for oil.
As oil is a strategic commodity essential to the present economy and military, then policies should be geared toward conserving oil. Everyone knows they are not; little conservation has happened since Jimmy Carter's tentative efforts. A national paving moratorium was proposed in 1990 in part to stop the lengthening of the nation's (oil) supply lines in time of war (Operation Desert Storm).
If the U.S. is truly not in Iraq and Afghanistan mainly for petroleum, and petroleum in that part of the world is meant for those countries and the whole world, then Gosh, the U.S. has to start rationing oil now. (Forget for a moment the main reason to cut back: global warming is caused in large part from petroleum emissions.) One could point out that U.S. trade partners need oil too, or else the U.S. goes down the tubes economically. But the U.S. felt a domestic and world crisis, to insist on war on Iraq. Some say it was to keep Iraq from accepting Euros instead of dollars for oil.
Approximately 20 million barrels a day of oil and refined products are being sucked unsustainably from the finite Earth just for the USA's burning and spilling the stuff. Neither the oil industry nor its White House acknowledges the impossibility of maintaining this rate. Because of free-market economists' ideology about the "creation" of supply, the future is never more than ten years off in their practical planning. As for an oil crisis hitting hard in the first decade of this century, this is not real to the oil fraternity because (1) it implies great change in an industry that's not generally about energy; petroleum is unique and specialized, and (2) it's the next quarterly report that really counts in big business.
World War II was a war for oil, in large measure, considering Axis and Allied aims and strategies. And the Axis - which happened to ultimately lose the war - was finally cut off from sufficient supplies of oil. But the U.S. had to ration oil and other products so that it would not run out during war. What have we learned from our history?
Critical oil stats
The number of days of supply of immediately marketable crude oil for the nation is only about 17 (seventeen), in terms of total supply already pumped out in the U.S. and having been imported. This is a typical level. That statistic is derived from knowing there are about 278 million barrels of crude now on hand, out of the ground, and almost 16 million barrels are used per day. There is also about a month's worth of oil in the Strategic Petroleum Reserve (SPR), which could be brought to surface, refined and distributed. All the SPR oil cannot be brought to market at once; the idea is that an orderly drawdown could keep supply and demand in balance for several months. (The commonly assumed SPR scenario does not solve a serious long-term shortage such as from declining global reserves.) As for petroleum products, mostly gasoline and diesel, there is only about a week and a half supply in the U.S.
Add the maximum available crude and refined products together, and you have a little over two months of oil supply for driving, some heating, and a few lesser energy uses in the U.S., if we assume the crude is refined into fuels (over half of it is).
The bigger assumption is that domestic pumping and especially importing will keep going "forever." Fifty-eight percent is the level of oil importation today - another reason for the attack on Iraq?
U.S. gasoline consumption is well over 9 million barrels (or over 400 million gallons) per day in summer. Almost nothing is currently being done to decrease this. To the contrary, conservation is anathema to the "conservatives" in control of the government. (See San Francisco Chronicle op-ed "And when cheap oil runs out... Enter the Age of Conservation" by Jan Lundberg, May 6, 2001.)
World War II -- Conservation and recycling
The Arsenal of Democracy: Conservation and Recycling
The U.S. Government after Pear Harbor asked Americans to salvage and collect a long list of materials that coud be used for the war effort. The materials included paper, aluminum, tin, iron and steel, rubber, silk stockings, and cooking fat. Some of these materiald like rubber and silk were needed because th Japanese had cut off the supplu by their rapid advance through Southeast Asia. The Government organized a major conservation and recycling effort. Cities and states were given quotas. Children and their families were involved with conservation and recycling of goods. Many children participated scrap metal, used tire, and paper drives to collect materials iseful to the war effort. Contests were held to meet established quotas. Newspapers reported on the quantities of material collected. Some comapnies sponsored drives and offered prizes. Given the need for alumininum for aircraft production, drives were launched for old pots. As the Japanese cut off America from sources of raw rubber, drives were launched for old tires. Children would even brought their own old toys in for scrap drives. At that time toys were much more likely to be made from metal than in our plastic society today. While these activities and drives were very widely publicized, we are not sure just how useful the amterials collected actually were. We have not yet found any definative studies indicating the actual value of these drives. We suspect that drives for aluninum and rubber in 1942 may have been especially important as the United States was just beginning to gear up production.
Pearl Harbor (Devember 1941)
Americans were reluctant partivcipants in World War II. Many opposed American participation. NAZI brutalities in Europe, especially the Blitz on London changed many binds, but many continued to oppose American participation. The Jappanese carrier strike on Pearl Harbor instantaneouusly changed the minds of virtually every American. The nature of the attack convinced Amretricans that the time had come to fight. Creating a national consenus. Most Americans including women and children not involved in the fighting wanted to partivcipate the war effort. One way that was expressed was in scrap drives.
Materials
The U.S. Government after Pear Harbor asked Americans to salvage and collect a long list of materials that coud be used for the war effort. The materials included paper, aluminum, copper, iron and steel, tin, rubber, silk stockings, and cooking fat. Some of these materials like rubber and silk were needed because the Japanese had cut off the supply by their rapid advance through Southeast Asia. Given the need for alumininum for aircraft production, drives were launched for old pots. One of the most serious raw material crises was rubber. The Japanese offensive in the first months of the War seized Southeat Asia which had been the major supplier of rubber. Government action requisitioned nearly the entire stock of rubber and tires. It became virtully impossible to buy tires--including bicycle and tricycle tires. Drives were launched for old tires. Major efforts were also made to expand production in Brazil and West Africa. In the end the problem was resolved by a crash progeam to create an entire new industry--synthetic rubber. Another interesting material was cooking fat. This might not seem like a critical national material. There are, however, many industrial uses for fats. Fat is the a base for soap. Coconut oil and palm oil are probably the most important oils used for sop, but other fats can be used as well. Fats are also used to produce candles, paints, varnishes, leather, artificial rubber, polishes, waxes, carbon paper, salves, insecticides, lubricants, cosmetics, drugs, dyes, petroleum, and synthetic resin. The reason for the drives for cooking fat, especially du ring the early phase of the war, was that glycerin in fat is an key ingredient in explosives.
Collection Efforts
The Government organized a major conservation and recycling effort. Cities and states were given quotas. Children and their families were involved with conservation and recycling of goods.
Wednesday, June 22, 2011
Tehran increasing Influence in afghanistan amd pakistan
A summit
in Tehran trumps the US
Read more at www.atimes.comAlmost directly in proportion
to the nosedive in Washington's ties with its
allies in Kabul and Islamabad, Iran has stepped up
its political and diplomatic activity over the
Afghan problem and the regional situation. Tehran
estimates that the United States' relations with
the Afghan and Pakistani governments have suffered
a serious setback and a swift recovery is
unlikely.
Tuesday, June 21, 2011
Are World Central Banks a Pyramid Scheme? Tipping Points, Breton WoodsII, IMF, World Bank, Fiat Currency, USD
Interesting analytical focus. Where is it going next?
Guest Post: 2011 Tipping Points
2011 Tipping Points (pdf)
Throughout my 2010 article series "Extend & Pretend" and "Sultans of Swap" I stressed that we were rapidly moving from the Financial Crisis of 2008, through the Economic Fallout of 2009 -2010, towards a Political Crisis in 2011 -2012. We are now clearly beginning to see the early emergence of the final part of this continuum. From North Africa to Wisconsin all are fundamentally based on the single insidious underlying problem - excessive global debt and credit levels.
The global macroeconomic environment appears to be rapidly unraveling. The situations in North Africa through the Middle East are blatant proof of social unrest and accelerating political instability. Food shortages and inflation pressures are now driving people into the streets. When you feel the hunger in your stomach and see it in the eyes of your children, it quickly erupts and motivates people to action.
It is now time to revisit our Tipping Points framework to see where this is leading. A framework that is clearly pointing to a global fiat currency failure and an emerging new world order which is detailed in our "2011 Thesis - Beggar-thy-Neighbor".
CONCLUSIONSRead more at www.zerohedge.com
We need to carefully watch:
1) The increasing & accelerated contagion of social tensions. Watch for Asia demonstrations in places such as North Korea.
2) How and if the Central Banks actually do unwind their crisis ‘triage’ programs or are they realistically now permanent and necessary to maintain the illusion of financial stability?
3) New government public policy initiatives to combat growing inflation and price pressures
4) The financial sectors abilities to continue to hide massive nonperforming commercial and residential real estate loans through Federal Reserve endorsed accounting gimmickry.
These events will allow us to determine if our roadmap is still valid or if we are going to see even sooner and possibly poorer financial outcomes than we predict in our free Monthly Market Commentary and Market Analytics reports.
The public will soon wake up to the magnitude of money printing that is going on to support the economic recovery fallacy. When the public does become aware, “Money Velocity” will accelerate.