Category: Economic History

China Is Asked for Investment in Euro Rescue

Euro
Image by Images_of_Money via Flickr

A new chapter is being written in the History of Money, Bank and Credit as news of how European leaders are asking for China to rescue them from the chaos they created. I wish this guys reconsidered before continue acting some of the most important principles of Deficit Financing, Freedom, Inflation, Money, Property Rights, Savings, Welfare State, Consumption, Credit; Gold Standard, Market Value, Objective Theory of Values, Production, Purchasing Power, Sanction of the Victim, Selfishness and the Trader Principle just to mention a few before going on making more business that en debts their country’s economy while make their citizens poorer.

And as Ayn Rand cleverly mentioned in regard to Deficit Financing,

The government has no source of revenue, except the taxes paid by the producers. To free itself—for a while—from the limits set by reality, the government initiates a credit con game on a scale which the private manipulator could not dream of. It borrows money from you today, which is to be repaid with money it will borrow from you tomorrow, which is to be repaid with money it will borrow from you day after tomorrow, and so on. This is known as “deficit financing.” It is made possible by the fact that the government cuts the connection between goods and money. It issues paper money, which is used as a claim check on actually existing goods—but that money is not backed by any goods, it is not backed by gold, it is backed by nothing. It is a promissory note issued to you in exchange for your goods, to be paid by you (in the form of taxes) out of your future production.

“Egalitarianism and Inflation,”
Philosophy: Who Needs It, 133

Read more of this news:

PARIS — A day after European leaders unveiled their latest plan to save the euro, top officials opened talks with China in an effort to lure tens of billions of dollars in additional cash, giving China perhaps its biggest opportunity yet to exercise financial clout in the Western world.

China is expected to demand significant concessions, including financial guarantees and limits on what Beijing sees as discriminatory trade policies, in exchange for any investment in Europe’s emergency stability fund. The head of the rescue fund, Klaus Regling, got a cautious reply from Chinese officials Friday during a visit to Beijing, where he said he did not expect to reach an investment deal with China anytime soon.

A senior Chinese official, Vice Finance Minister Zhu Guangyao, said China — like the rest of the world — was still waiting for the Europeans to deliver crucial details on how the rescue fund, the European Financial Stability Facility, would operate and be profitable before deciding on whether to participate. via: China Is Asked for Investment in Euro Rescue by Liz Alderman and David Barboza.

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Video: A History of Economic Booms and Busts

When an economy falls into a recession, we typically observe a cluster of people making similar investment mistakes.  According to historian Stephen Davies, these investment errors occur because governments or central banks manipulate the supply of money. These manipulations place artificial downward pleasure on interest rates, creating false signals that entice individuals to invest in what end up being unprofitable ventures. Booms and busts are not a new phenomenon of this century, but rather, have occurred throughout history both in America and around the globe.

via:

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In the Shadow of Slavery: Africa’s Botanical Legacy in the Atlantic World

rice
Image by tamaki via Flickr
map: United States, 1860, percentage of the sl...
Image via Wikipedia

Today I finished reading the Kindle book In the Shadow of Slavery: Africa’s Botanical Legacy in the Atlantic World by Judith Carney and Richard Nicholas Rosomoff; and I have confirmed that the work of any historian cannot be done without the help of Geography and a Globalized view of the power behind migrations. In her book, the author made very clear the effects of this forced migration of black slaves to America and how they changed the botanical future of the whole American Continent.  Reading this also was a great way of remembering when I worked as Collection Developer of the Wilson Popenoe Library (2,300 items) at the Ludwig von Mises Library.  His was a fantastic bibliography and you could see in his books how he managed to be the first exporter of Avocados to The United States.

 

Now, I invite you to check the book review via Project MUSE® prepared by Brian Grabbatin,

Many geographers know Judith Carney from her award-winning book Black Rice: The African Origins of Rice Cultivation in the Americas (2001). There she explored the development of rice growing techniques in Africa and subsequent role of enslaved Africans in transferring those techniques to North American plantations, particularly in the South Carolina low-country. In the Shadow of Slavery, a new book coauthored by Carney and independent researcher Richard Nicholas Rosomoff, builds on these findings, examining how enslaved Africans participated in botanical exchanges that have shaped foodways in the Atlantic world. In contrast to Black Rice, this book focuses on a variety of subsistence crops instead of a single cash … Read More

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Egypt and the first modern factories

Today I had an epiphany in Economic History thanks to Ph.D. Isa Blumi who gave a lecture on “The Ottoman Legacy: Socio-Economic Dynamics and the Origins of Modern Politics” emphasizing the economic history of Egypt and The Ottoman Empire during the 18th. and 19th Centuries.

The first great argument was rooted in how Egypt had been already transforming its economy and society long before The Napoleonic French Campaign (1798-1801).  As well, he made very clear how Napoleon’s interest in acquiring Egypt’s wheat was much more important than posing for a picture in front of the Sphinx. He explained the consequences of this invasion and the resulting liberation of Egypt by the genious of Muhammad Ali Pasha.

The epiphany to my research interest came when he localized the first modern factory 2,500 miles away from the cities of Derby, Birmingham and Manchester. Most surely, researching this argument would surely enlighten the current historiography of Economic History and establish more roots of entrepreneurial activity, innovation and mass production in the Middle East.  Doing this will also disentail the roots of the creation of Wealth from the Eurocentric historigraphy that has been in fact characterized by its antipodes: mercantilism, patrimonialism and altruism.

If you are interested in learning more of this subjects here are recommended readings that Professor Blumi shared with me:

Concorde’s last day in Global History

Video: Concorde’s last flight.

There are moments in history in which the World Order changed and historians are always trying to get them accepted and applauded by their colleagues. Those specific moments in history may be not seen immediately but until enough time has passed to understand the direct and indirect effects that shaped the course of History.

Many of these moments are the product of technological innovations that changed the way humans lived. One of them could be October 24, 2003 when three BA Concordes made the last commercial flights in history: G-BOAG flew from New York to London; G-BOAE made a return flight to Edinburgh; and G-BOAF flew around the Bay of Biscay. All three circled over London before landing within minutes of each other at Heathrow Airport.

The relevance of this event may not yet be so evident. However, we can be certain that the impact that had the catastrophe of a Concorde near Paris in July 2000 is going to determine the future of space flights. Specially after the last flight of Atlantis (the last Space Shuttle of the United States) in July 21, 2011.

The blog The Modern Historian posted a great/short overview of Concorde’s history and here is it:

During the late 1950s, aircraft manufacturers around the world started working on designs for supersonic passenger jets. The costs for such projects were so prohibitive that few of them progressed beyond the design stage. In the early 1960s, the British Aircraft Corporation, which had inherited the Type 223 supersonic transport (SST) project from the Bristol Aeroplane approached the French Sud Aviation, who were working on the Super-Caravelle SST, with an offer to co-operate on a joint project.The result of this co-operation was Concorde, which made its maiden flight in 1969. By this time, Concorde only had one compettitor, the Russian Tupolev Tu-144, but cold war tensions and the crash of a Tu-144 at the 1973 Paris Air show meant that it was Concorde that attracted orders from the major airlines. Nevertheless, the oil crisis of late 1973, environmental concerns about nervousness about sonic booms (the noise the aircraft made as it broke the sound barrier) resulted in the cancellation of all the orders except those from the national airlines of France and the United Kingdom. These orders for ten aircraft each still required substantial government subsidies to keep the project alive.In spite of these setbacks, Air Franceand British Airways (BA) started scheduled flights using Concorde in 1976. Although other airlines occasionally leased the aircraft, the high operation costs meant that supersonic travel was only feasible for the most profitible routes. Nevertheless, to continue running the services required high ticket prices, the continued government funding in the case of Air France and the sale of the British fleet of aircraft to BA at a knock-down price.All this changed following the crash of a Concorde near Paris in July 2000. The year long grounding of all the Concordes contributed to the decision taken by both airlines to withdraw the aircraft. On 27th June 2003, an Air France Concorde flew for the last time and on 24th October that same year three BA Concordes made the last commercial flights by the aircraft: G-BOAG flew from New York to London; G-BOAE made a return flight to Edinburgh; G-BOAF flew around the Bay of Biscay. All three circled over London before landing within minutes of each other at Heathrow Airport.