The Economic Impact of a War Between Japan & China

“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

Diplomatic Relations Between the United States and the People’s Republic of China United States Statement

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.

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).

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 Iximche, Mixco 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.

The legacy of George Washington’s Postal Service Act of February 20, 1792

127304 600 End of Saturday Mail Delivery cartoons

WASHINGTON — Faced with billions of dollars in losses, the Postal Service announced on Wednesday (Feb. 06 2013) that it would seek to stop Saturday delivery of letters, a sweeping change in mail delivery that immediately drew criticism from postal unions, some businesses and lawmakers.

What went wrong I wonder? Would it had been better if George Washington had never passed the Postal Service Act of 1792? How many billions would taxpayers have saved since then? Would private companies like the American Letter Mail Company of Lysander Spooner have served better the market? Or would the system have collapsed without government intervention?

In February 20, 1792 the Postal Service Act, establishing the United States Post Office Department was signed by President George Washington. An interesting date to remember in these days in which the Postal Service made it to the news with their Losses and their controversial solution by ending Saturday Letter Delivery.

We know for certain that in a free market no company would survive if they had kept losses as huge as the one USPS has had over all these years. They had losses of $15.9 billion only last year. A principle of free market transactions is that in competing there appears a beneficial rivalry among sellers trying to achieve goals as increasing profits, market share, and sales volume by varying the elements of the marketing mix: price, product, distribution, and promotion. Thus, enabling for those companies which succeed in growing larger and for those companies which fail to disappear. With the existence of monopolistic services (like the Postal Service in the US) industries and business sponsored by government disrupted market transactions (bureaucratically made) and thus enabled for failing companies to continue existing even though they were not beneficial for society in the long-term.

126863 600 going postal cartoons

This reminds me to the company founded Lysander Spooner whom “being an advocate of self-employment and opponent of government regulation of business, Spooner started his own business called American Letter Mail Company which competed with the U.S. Post Office. Postal rates were notoriously high in the 1840s,^[7] and in 1844, Spooner founded the American Letter Mail Company, which had offices in various cities, including Baltimore, Philadelphia, and New York.^[8] Stamps could be purchased and then attached to letters which could be sent to any of its offices. From here agents were dispatched who traveled on railroads and steamboats, and carried the letters in hand bags. Letters were transferred to messengers in the cities along the routes who then delivered the letters to the addressees. This was a challenge to the United States Post Office’s monopoly.^[7]^[9] As he had done when challenging the rules of the Massachusetts bar, he published a pamphlet titled “The Unconstitutionality of the Laws of Congress Prohibiting Private Mails.” Although Spooner had finally found commercial success with his mail company, legal challenges by the government eventually exhausted his financial resources. He closed up shop without ever having had the opportunity to fully litigate his constitutional claims. The lasting legacy of Spooner’s challenge to the postal service was the 3-cent stamp, adopted in response to the competition his company provided.^[10]“

Lets have this as food for thought…

Why is Copernicus relevant to our understanding of Globalization?

We are constantly bombarded with media reports on globalization in terms of its increasing process and potential effects on our lives. What is meant by this concept and why should we be concerned with its impact? The developing countries of sub-Saharan Africa, Latin America and Asia should be interested in it because of the opportunities and threats offered by globalization (also known as globalisation).

The mother of this globalization is Science and the activator is her daughter Technology (both affectionately called science and technology). The most visible manifestations of “globalization” are in the economic and communications spheres. And one of the fathers of Science is our friend Copernicus.

In two sentences his contribution to Science and Globalization is:

Copernicus broke open the medieval idea of an enclosed, Earth-centered universe.
He set the stage for all of modern astronomy.

And why does this matter?

He lived at a time when people believed Earth lay enclosed within crystal spheres at the center of the universe. Can you picture the leap of imagination required for him to conceive of a sun-centered universe? The publication of Copernicus’ book – De revolutionibus orbium coelestium (On the Revolutions of the Celestial Spheres) – just before his death in 1543, set the stage for all of modern astronomy. Today, people speak of his work as the Copernican Revolution.

Nicolaus Copernicus – Heliocentric Model [HQ]

Post-data: Copernicus wasn’t the first to conceive of a sun-centered universe. Early Greek philosophers also spoke of it. It was the Greek philosopher Aristotle, however, who proposed that the heavens were literally composed of 55 concentric, crystalline spheres to which the celestial objects were attached. In Aristole’s model, Earth lay at the center of these spheres. Thus Earth lay – fixed and enclosed – until Copernicus published his version of a heliocentric universe.