The Economic Impact of a War Between Japan & China

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“The United States believes that the establishment of diplomatic relations with the People’s Republic will contribute to the welfare of the American people, to the stability of Asia where the United States has major security and economic interest, and to the peace of the entire world.”

President Jimmy Carter
The American Presidency Project. December 15, 1978

 

Unfortunately, this is not a conspiracy theory.  2013 is a decisive year to deter the escalation of a war between Japan & the People’s Republic of China.  Who can stop it? According to this impressive video, the United States of America has a decisive role to play in this global arena.

A major conflict between the region’s two largest economies would not only impose a harsh dilemma on U.S. diplomats, but also have a significant impact on the entire global economy. It is in every nation’s best interest that the Chinese and Japanese settle their territorial dispute peacefully.

The team at One Minute MBA explains that

“The conflict between China and Japan has put the United States in a precarious position: if a full-scale war were to erupt, the U.S. would be forced to choose between a long-time ally (Japan) and its largest economic lender (China). Last year, China’s holdings in U.S. securities reached $1.73 trillion and goods exported from the U.S. to China exceeded $100 billion. The two countries also share strong economic ties due to the large number of American companies that outsource jobs to China.

However, the U.S. government may be legally obligated to defend Japan. In November, the U.S. Senate added an amendment to the National Defense Authorization Act that officially recognizes Japan’s claims to the disputed islands; the U.S. and Japan are also committed to a mutual defense treaty that requires either country to step in and defend the other when international disputes occur. Not honoring this treaty could very easily tarnish America’s diplomatic image.

The countries of the Asia-Pacific region are collectively responsible for 55 percent of the global GDP and 44 percent of the world’s trade. A major conflict between the region’s two largest economies would not only impose a harsh dilemma on U.S. diplomats, but also have a significant impact on the entire global economy. It is in every nation’s best interest that the Chinese and Japanese settle their territorial dispute peacefully.”

To read the entire video transcript please visit this link.

For All the Tea in China

22 February, 1784: The first American trade ship to China weighs anchor in New York City. The history of trade between China and the West is fraught with conflict and cultural complications, as demonstrated by the audacious 19th-century attempt by the British to steal China’s tea crop and transplant it to its own plantations in India. The caper is recounted in Sarah Rose‘s FOR ALL THE TEA IN CHINA.

In the dramatic story of one of the greatest acts of corporate espionage ever committed, Sarah Rose recounts the fascinating, unlikely circumstances surrounding a turning point in economic history. By the middle of the nineteenth century, the British East India Company faced the loss of its monopoly on the fantastically lucrative tea trade with China, forcing it to make the drastic decision of sending Scottish botanist Robert Fortune to steal the crop from deep within China and bring it back to British plantations in India. Fortune’s danger-filled odyssey, magnificently recounted here, reads like adventure fiction, revealing a long-forgotten chapter of the past and the wondrous origins of a seemingly ordinary beverage.

22 February, 1784: The first American trade ship to China weighs anchor in New York City. The history of trade between China and the West is fraught with conflict and cultural complications, as demonstrated by the audacious 19th-century attempt by the British to steal China's tea crop and transplant it to its own plantations in India. The caper is recounted in Sarah Rose's FOR ALL THE TEA IN CHINA: http://bit.ly/Zn5SltIn the dramatic story of one of the greatest acts of corporate espionage ever committed, Sarah Rose recounts the fascinating, unlikely circumstances surrounding a turning point in economic history. By the middle of the nineteenth century, the British East India Company faced the loss of its monopoly on the fantastically lucrative tea trade with China, forcing it to make the drastic decision of sending Scottish botanist Robert Fortune to steal the crop from deep within China and bring it back to British plantations in India. Fortune's danger-filled odyssey, magnificently recounted here, reads like adventure fiction, revealing a long-forgotten chapter of the past and the wondrous origins of a seemingly ordinary beverage.

February 20 1524. The Commemoration of the death and defeat of a Mayan Prince in a Critical Juncture of Globalization

Title: The Clash.<br /><br />By: Alfredo Gálvez Suárez.<br /><br />A depiction of the battle of 1524 in which the Spanish conquistadores defeated the Army leaded by Tecum Umam.
Title: The Clash.
By: Alfredo Gálvez Suárez.
A depiction of the battle of 1524 in which the Spanish conquistadores defeated the Army leaded by Tecum Umam.

The term Globalization refers to what many different historians considered a process of interrelation (or unification) of the world. It was a process of cultural, political and economic relations that for the first time in history united all mankind.  One of these critical events of unification and clash of cultural and political relations took place in  February 20 1524.  This day is commemorated by Guatemalans to remember the leaders and events of the “The battle of Llanos del Pinal  ((The Society of Geography and History of Guatemala documented that this battle actually took place on February 12 1524) which took place in the vicinity of the K’iche’ Mayan city of  Xelajú (located in today’s mountainous area of Guatemala in Central America).

tecun-uman

In this battle, the K’iche’ Rajpop Achij Tecum Umam (Guatemala’s National Hero and K’iche’ Mayan Captain of the army) commanded an army of 72,000 warriors (as narrated by the Chronicler Francisco de Fuentes y Guzmán) that fought against the invading hordes of the conquistador Pedro de Alvarado and his indigenous allies from the territories that are today the South of Mexico. While the invaders defeated the K’iche’ army, the chroniclers of this battle remembered Tecum Umam as the glorious warrior and miraculous hero that started to be referred in the narrations with epic roles and anthropomorphic abilities.

After this battle that “tainted all the neighbouring rivers red of blood” the Spanish conquistadores continued their invasion in the following month of the city of Q’umarkaj (also known as Utatlán). This secured for them the hegemony over the other less powerful cities of IximcheMixco Viejo, and Zaculeu that were located in the Southernmost part of the Sierra Madre mountain range.

The aftermath of this battle concluded six years later with the Quauhquechollan alliance of the conquistador Jorge de Alvarado (brother of Pedro de Alvarado) and their Nahuatl allies from the city of Quauhquechollan that gave the Spanish and absolute control of large part of Mesoamerica.

By the beginning of the Spanish conquest the territory of Mesoamerica the Mayan Civilisation was already extinguished and dozens of different indigenous tribes leaded by  caciques, warriors and priests controlled weaker and less advanced forced-labor societies.  This enabled the conquest of the territories to be fast and easy.

Just a decade later, by the 1540s, the new elite that ruled this forced-labor societies had already established itself with a mixed Spanish-Indigenous head in control and started the process of acculturation, integration, evangelisation, assimilation and reeducation of a society that went from a tribalist type of life into a mercantilist economy ruled from a metropolitan and global Empire with its head 5,400 miles away in the city of Madrid.

Since 1524, Mesoamerica joined the global community of trade, commerce, acculturation and universalisation of traditions and costumes.  This is an important junction that should be remembered by all of us.

Is Globalization finally saying “STOP!” to the Catholic Church?

https://i2.wp.com/www.catholicworldreport.com/Content/Site140/Articles/05_01_2009/724PopeBenedict_00000000427.jpgAfter only seven years as Head of the Catholic Church, the resignation of Pope Benedict XVI is an astonishing news.  This may be a message on how Globalization affects such global organization.  The election of Pope Benedict XVI followed all the rules of the Church but did not listen to the “new” rules imposed by globalization: which include good advertisement, global awareness, and above all intercultural appealing to standards of ‘universal friendliness and empathy’, among others.  I wrote an article titled “Parishes Fail to Market Catholicism to Hispanics (pdf available here)” (National Catholic Reporter, Vol. 43, No. 12 2007) discussing how the Catholic Church has failed to Market Catholicism among Hispanics.

Benedict XVI was elected on 19 April 2005 in a papal conclave, celebrated his Papal Inauguration Mass on 24 April 2005, and took possession of his cathedral, the Archbasilica of St. John Lateran, on 7 May 2005. Today, February 11, 2013, Benedict announced that he would resign the papacy, effective February 28, due to age and ill health.

His health may be have been an issue.  However, it seems to me that the real problem started when the Papal conclave of 2005 elected him above the other contestants for the Pope position without taking notice of all the changes that institution has gone through centuries.

Currently, Catholics are 17.77% of the total population in Africa, 63.10% in the Americas, 3.05% in Asia, 39.97% in Europe, 26.21% in Oceania and 17.09% of the world population. (Further information: Catholicism by country)

Distribution of Catholics by World Region, 2004, 2025, and 2050
Note: Percentages may not add to 100% due to rounding.
Source: Author’s calculations based on data from PRB’s World Population Data Sheet 2004 and accessed at http://www.catholic-hierarchy.org.

Globalization is slowly forcing them to adapt to this new demographics and the election of a Latin American (a Mediterranean look would suffice) or African Pope could bring some new Fresh air to this archaic institution.  The Latin America region already represents 42 percent of the world’s 1.2 billion-strong Catholic population, the largest single block in the Church, compared to 25 percent in its European heartland.

In 2005 among the “popeable” (one who might become pope) where also the cardinals Carlo Maria Martini, who died last year and obtained 40 votes in the first ballot versus the popular Italian cardinal Camillo Ruini who also was a contestant for the position in that initial ballot.  Cardinal Ruini has been very active in the mass media and was one of the cardinals who most often appeared on Italian television, newspapers and magazines.  I would suppose that his election as a new Pope in the Conclave of cardinals that will choose the next pope in mid-March is very high.  Camilo Ruini is very popular among the “Reformer” side of the Catholic Church as the news inform (he is also more photogenic and could appeal to the Hispanic followers easily).

Lets see what happens in March, 2013 with the new Papal Conclave.  Meanwhile, I share with you a documentary on the new face of this Eurocentric organization that is finally (slowly) changing its own look!

The Catholic Church and Africa

U.S. Gun Murders in 2010: an Alternative View

us_gun_murders.jpgHow many gun murder victims in the U.S. are black? How many were killed with hand guns (and not with the now fiercely debated assault rifles)? U.S. Gun Murders in 2010 [periscopic.com] by Periscopic combines function and beauty to examine the data retrieved from the U.S. Federal Bureau of Investigation‘s Uniform Crime Report. Its main goal consist of encouraging people to consider individual lives instead of just the statistic

Each arc represents a unique person, where the yellow color denotes how long they lived before being shot, and the white color how long they could have lived. Each arc is clickable and reveals more detailed information about that casualty.

A relatively hidden button at X-axis origin shows a cumulative graph of this data, revealing the relative peaks of age of the victims of gun crimes. Additionally, at the bottom of the page, a small collection of insights is provided.

Via: information aesthetics

Satellite images of negative externalities caused by Globalization

I always keep track of the images from space taken by NASA.  They usually have impressive “natural hazards” photographed with the highest technology available.  However, sometimes the natural hazards to humanity are not caused by the natural cycles of Earth.  In those cases, it is humans who have created hazards for themselves and people die.  Now, why would we create things that harm us so much? Why would we support and contribute to such terrible things?  A good explanation is the one given by economists with the complex and difficult term negative externalities.

A negative externality is a spillover of an economic transaction that negatively impacts a party that is not directly involved in the transaction. The first party bears no costs for their impact on society while the second party receives no benefits from being impacted. This occurs when marginal social cost is greater than marginal private cost (MSC > MPC).

The case of pollution in China elucidates very well how the market-driven approach to correcting externalities by “internalizing” third party costs and benefits fails to work in a globalized economy.  For example, by requiring a polluter to repair any damage caused. But, in many cases internalizing costs or benefits is not feasible, especially if the true monetary values cannot be determined.  In fact, our technological gadgets and thousands of products imported from China are the cause of the hazardous health conditions in that country.  We as consumers are part of this chain by buying the products. How can we do something?

I would suggest that the best way to participate in a positive way is to continue creating awareness of the failure of the government of China to protect the lives of the Chinese people.  It is at the end of the day the responsibility of that government to protect the life and property of its citizens, not ours.  We as consumers can only morally sanction them and stop consuming their products whenever possible.

This is a good (and very unfortunate) example of how globalization without an objective code of values becomes a zero sum game.  I share with you the information regarding how dangerous has become the air in the surroundings of Beijing and Tianjin,

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Air Quality Suffering in China

acquired January 14, 2013download large image (7 MB, JPEG, 5000×6400)
acquired January 14, 2013download GeoTIFF file (47 MB, TIFF)
Air Quality Suffering in China

acquired January 3, 2013download large image (8 MB, JPEG, 5000×6400)
acquired January 3, 2013download GeoTIFF file (51 MB, TIFF)
acquired January 3 – 14, 2013download Google Earth file (KMZ)

Residents of Beijing and many other cities in China were warned to stay inside in mid-January 2013 as the nation faced one of the worst periods of air quality in recent history. The Chinese government ordered factories to scale back emissions, while hospitals saw spikes of more than 20 to 30 percent in patients complaining of respiratory issues, according to news reports.

The Moderate Resolution Imaging Spectroradiometer (MODIS) on NASA’s Terra satellite acquired these natural-color images of northeastern China on January 14 (top) and January 3, 2013. The top image shows extensive haze, low clouds, and fog over the region. The brightest areas tend to be clouds or fog, which have a tinge of gray or yellow from the air pollution. Other cloud-free areas have a pall of gray and brown smog that mostly blots out the cities below. In areas where the ground is visible, some of the landscape is covered with lingering snow from storms in recent weeks. (Snow is more prominent in the January 3 image.)

At the time that the January 14 image was taken by satellite, ground-based sensors at the U.S. Embassy in Beijingreported PM2.5 measurements of 291 micrograms per cubic meter of air. Fine, airborne particulate matter (PM) that is smaller than 2.5 microns (about one thirtieth the width of a human hair) is considered dangerous because it is small enough to enter the passages of the human lungs. Most PM2.5 aerosol particles come from the burning of fossil fuels and biomass (wood fires and agricultural burning). The World Health Organization considers PM2.5to be safe when it is below 25.

Also at the time of the image, the air quality index (AQI) in Beijing was 341. An AQI above 300 is considered hazardous to all humans, not just those with heart or lung ailments. AQI below 50 is considered good. On January 12, the peak of the current air crisis, AQI was 775 the U.S Embassy Beijing Air Quality Monitor—off the U.S. Environmental Protection Agency scale—and PM2.5 was 886 micrograms per cubic meter.

  1. Resources

  2. Air Pollution in China: Real-time Air Quality Index Visual Map. Accessed January 14, 2013.
  3. China Air Daily. Accessed January 14, 2013.
  4. U.S Embassy Beijing Air Quality Monitor. Accessed January 14, 2013.
  1. References

  2. Associated Press, via Yahoo News (2013, January 14) Beijing warns residents after off-the-charts smog . Accessed January 14, 2013.
  3. NASA (2010, September 22) New Map Offers a Global View of Health-Sapping Air Pollution.Accessed January 14, 2013.
  4. NASA Earth Observatory (2012, March 23) Satellites Map Fine Aerosol Pollution Over China.
  5. The New York Times (2013, January 14) China allows media to report alarming air pollution crisis. Accessed January 14, 2013.
  6. Yahoo News (2013, January 14) China’s air pollution problem slideshow. Accessed January 14, 2013.

NASA image courtesy Jeff Schmaltz, LANCE MODIS Rapid Response. Caption by Mike Carlowicz.

Interesting! After Democrats in New York rammed a sweeping assault on the right to keep and bear arms through the legislature that failed to exempt police officers from the draconian restrictions, gun owners and even some lawmakers are planning what has been dubbed potentially the largest act of civil disobedience in state history.

Boudica BPI Weblog

Via SHTF Plan - When The Shit Hits the Fan, Don't Say We Didn't Warn You - Preparedness, Planning, News, and Commentary

One upstate Republican AKA RINO voted with Cuomo and all upstate dwmocraps. Split NY into 2 states. Mid Hudson, Upstate NY vs. NYC, downstate on NY Gun Control Law

Resistance Begins

With emotions running high in the aftermath of the Newtown Sandy Hook shooting, politicians on the State and Federal level have begun introducing legislative actions to curtail access to firearms protected by the Second Amendment. In Missouri, parents may soon be forced to register firearms with their child’s school under threat of criminal penalties. In Massachusetts, another proposal would require storage of semi-automatic rifles at government approved storage depots. And, in the State of New York, congressional representatives have already passed legislation that requires registration of every semi-automatic rifle and reduces maximum magazine capacity to 7 rounds of ammunition, and Governor Cuomo has floated the idea of gun confiscation.

Now, in what is sure to be a growing…

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