Showing posts with label New Year Forecast. Show all posts
Showing posts with label New Year Forecast. Show all posts

Wednesday, December 29, 2021

Jupiter has finally started crossing the ascendant of Pisces after Aquarius

 


At 13:10, Jupiter has finally started crossing the ascendant of Pisces after Aquarius. I would like to say "Congratulations!" especially for those endowed with the lights (Sun and Moon) of the fixed signs except for Aquarius and of the water sign. 
 
It has been really hard for those fixed signs from October to just before 13:10 today because both Jupiter and Saturn (Aquarius is its ex own sign) were still crossing the ascendant of Aquarius together. They also formed the square with Uranus crossing the ascendant of Taurus (Uranus's detrimental sign). 
 
Jupiter is now going to form the conjunction with Neptune (Pisces is its own sign) in coming April. As proven in my econometric analysis (http://art-blue-liberalism.blogspot.com/2021/11/econometrics-meets-astrology-regressing.html), the conjunction of Jupiter and Neptune is positively correlated with the world GDP. Furthermore, because Neptune is crossing the ascendant of its own sign, the effect maybe magnified. Those endowed with the water signs will be significantly more benefited from their conjunction in Pisces (the mutual water sign) because it forms either the conjunction or the triangle. 
 
Regarding the world economy, it is still concerned that the distribution of the aggregate economic and financial growth maybe limited to particular industries rather than all. Saturn (in its ex own sign) and Uranus (Taurus as detrimental = weak economy) still form the square so that the socioeconomically challenging factors will be likely to remain. Therefore, it is predicted that some new business models may emerge and those industries representing the characteristics of Neptune and Pisces (Software, data flow, finance, astrology, etc.) may substantially grow. By contrast, the other industries especially those which have been benefited from the status-quo may still face their business and financial stagnation.

Monday, September 07, 2020

Transit from Dec. 2020 to Jan. 2021, The dramatic change in Finance, Politics, and Technology will start taking place.

 * This analysis is based on an astrology so please kindly note that these following assumptions are not quite scientific and objective, and the variance of the error is significantly big.  Thanks for your attention.


The inner cycle denotes the transitory chart of December, 2020 and the outer cycle denotes the transitory chart of January 2021. 

The notoriously critical triple conjunction of Jupiter, Saturn, and Pluto has continued from the beginning of 2020 to now, and will continue until 2021 comes.  Saturn temporarily left this conjunction in June, 2020, but came back there. In addition, when Saturn returned to the triple conjunction in the ascendant of Capricorn, Mars started crossing the ascendant of Aries, his own sign, and formed the square with that heavy triple conjunction.  

This means that, the critical world socio-structural change started taking place in the beginning of 2020, and the aftermath effect has been perpetuated after both Saturn's return and Mars' own sign with their square.  This seems to imply that the effect of ongoing wars against Corona-virus (COVID-19) and the fatal world socio-structural crises are being perpetuated together while this conjunction.

At the same time, Jupiter and Neptune (Together represents the financial well-being) has been forming a reasonably soft form, sextile, while this ultra hard aspect.  This may indicate that the quantitative easing (QE) by various central banks in this world have propped up the other capital market such as the stock market. 

 

On the other hand, both Jupiter and Saturn are passing away from the conjunction with Pluto crossing the ascendant of Capricorn meanwhile Mars is also finish crossing the ascendant of Aries.  Then, Jupiter and Saturn start crossing the ascendant of the first degree of Aquarius together.  At the same time, Mars starts forming a conjunction with Uranus crossing the ascendant of Taurus.  

 Remember that Taurus (Wealth and Stability) is a detrimental sign for Uranus (Innovation and Spontaneity).   He forms a symbol of strife, Mars, and then form a square with Jupiter (Expansion and Wealth) and Saturn (Responsibility and Order&Stability), both of which represent a socio-structure.  Even though these two structural symbols are overcoming from the conjunction with a symbol of fatality, Pluto, it looks like approaching a sudden drastic change in the world. 

However, although the sextile of Jupiter and Neptune is cancelled off after this December, it does not mean to induce a hard aspect of them just after then.  The end of the QE does not necessarily induce the hard situation.  It may be hard for some such as those who cling to taking advantage of the status quo. (Jupiter and Saturn together just go away from the ascendant of Capricorn)  We will need to find a new innovative and relatively riskier way not relying on static authority and norm. (Jupiter and Saturn start crossing the ascendant of Aquarius together while forming a square with the conjunction of Mars and Uranus which is crossing the ascendant of his detrimental sign Taurus)

Perhaps, we will see some sort of a solid answer or a solution for tackling against COVID-19 in the beginning of 2021 although some negative side effect remaining in the world.  At the same time, the central banks will stop pouring their excess money supply into the world financial market, and the sharp economic downturn, which has been postponed by the QE programme, will suddenly emerge.  The suddenness and sharpness are represented by the sudden change in the chart pattern just within one month as shown above.  

 

The chart formation from January, 2021 also seems to introduce the prelude of the new era of Pluto starting to cross the ascendant of Aquarius after passing away from the ascendant of Capricorn because both the socio-structural symbols Jupiter and Saturn are simultaneously crossing the ascendant of Aquarius after passing away of Capricorn.  

While Pluto is crossing the ascendant of Capricorn, the vertical relationship of human-beings such as the existence of nations and enterprises is fatally challenged.  By contrast, while Pluto is crossing the ascendant of Aquarius, the horizontal relationship of human-beings such as the form of the relationship with the others and the entire society itself is fatally challenged.  

Furthermore, this drastic transition is also about the shift from earth (subjective feminine) to wind (objective masculine).  The emotional whim by populism and patriotist sentiment have been dominant recently whilst the more dry pragmatic sense will start replace it at a very fast pace in coming years.  The recent development of information technologies and artificial intelligence will be accelerated furthermore, and dry rational pragmatism will frequently override emotionality and caring-sentiment.  We must be prepared for everything as fast as possible because this transformation of the world is rapid as well as dramatic...!



Monday, January 08, 2018

New Moon Diagramme, 2018

My astrologist friend taught me that this chart based on the new moon diagramme is the proper chart to use for the forecast whenever we forecast events taking place in monthly and yearly basis. My previous post about 2018 new year forecast showed the chart at 00:00 on 1st Jan., 2018. But, this is not precise to show the aspects of these signs together. Whenever we estimate a relatively long term scenario, it is essential to use the new moon diagramme of this month (Moon is the new moon on 17th Jan, 2018) instead of 1st of the month because a chart based on the new moon diagramme indicates beginnings and causes of the events happening in the long term.



There are several aspects of these signs to focus on this month and this year.

- Jupiter and Neptune form a triangle: The financial market is prosperous so it is stable until this November.

- Uranus forms a square with the rights (Sun and Moon): There is an alarming of reforms although hesitation and obstacles against these reform may easily arise.

- Pluto forms a square with Uranus & Saturn is crossing the ascendant of its own sign Capricorn: The aforementioned reforms will be prevented in favour of conservativeness propping up the status-quo.

All in all, there will be a lot of controversies and frustrations emerging meanwhile implementation of these reforms will be postponed.




Sunday, December 31, 2017

2018 New Year Forecast: Conservativeness, Unintelligibleness, and Cryptocurrency

1. Introduction
There have been so many incredible and unexpected scenarios taking place in this world these years. The development of the economic and political globalism seems to stagnate. The management of both nation-states and corporations also seems to struggle as they tend to be directed to the undesired consequences such as perpetually accumulating deficit and losing their ethical path. Many economic and political administrators have whispered that these events are unexpected and incredible.

Nonetheless, this world is at an ethical and technological transitional period which many have not explicitly realised. The globalisation will continue advancing although their advancement is temporarily stagnating due to the current fashion of majority individual's preferences. The picture of the financial economy will be furthermore diversified due to the drastic transformation of the world monetary system.

2. Astrology: Conservativeness and Unintelligibleness

This is the astrology chart of 1st January, 2018. The main focus on this chart is the position of Saturn and Neptune which will significantly affect the characteristics of this year. Individuals will experience the deep characteristics of the postmodern nihilism during this time period.


3. Saturn and Capricorn: Conservativeness
Since last 20th December, Saturn has started crossing the ascendant in Capricorn, and Saturn stays in this position for approximately 3 years. Capricorn is Saturn's own zodiacal sign so that the effect of both Saturn and Capricorn will be remarkably strong. This implies that the trend of conservativeness is emphasised and people focus more on the local and micro level of their life than the global and macro level. Furthermore, both Saturn and Capricorn represent patience and responsibility so that the perseverance of individuals for living in their life will be tested.

Economy requires firms to set their conservative rather than expansive management style to overcome from economic recession. Individuals prefer putting priority on developing and improving their local environment to the global counterparts. Those who maintain their responsibility and patience in their daily life will be rewarded well whilst those spending their extravagant life style and abandoning their responsibility in their daily life will be punished.


4. Neptune and Pisces: Unintelligibleness
Neptune is still crossing the ascendant in Pisces, and it takes approximately 8 years from now to finish crossing there. Because Pisces is the own zodiacal sign of Neptune, the characteristics of both Pisces and Neptune have influenced and will influence for 8 years from now. The characteristics are ambiguity, mystery, and spirituality. At this time period, various information flows tend to be inconsistent and decision making processes are hard to be stabilised. Then, many logical predictions are easily undermined due to various obstacles of obtaining information sets, and individuals often put priority on emotional opinions rather than logical and rational opinions during this period.

During this period, individuals lose their trust in many academic and financial analyses because most of these analyses are unable to provide them with a consistent and accurate estimate due to the current chaotic situation of the information flows. By contrast, fictional writing and preaching self-enlightenment will be popular and successful. Fictional writers do not have to be responsible for the conclusion of their stories because they are fictional so neither related to nor affecting the real world situations. Self-enlightenment provides individuals with their ability to self-evaluate their own life by admitting everyone's life style is different from each other so that it is not necessary to indicate a stable consistent solution for everyone.


5. Bitcoin and the other Cryptocurrency: Initial Coin Offering (ICO)

Rise of Bitcoin has surprised and influenced individuals in the entire world. It looked like showing the replacement of the current world monetary system from the scratch. Many individuals once predicted that Bitcoin and any other cryptocurrencies would not be so popular because they were too complex to utilise. Nevertheless, they were suddenly surprised at the sudden rise of the share of Bitcoin in 2017, and many have regretted of not having bought it.

Although it was a clever and reasonably profitable action to have purchased Bitcoin and/or another major cryptocurrency, it is unnecessary to regret of not having done so because the bubble of their share will end soon. Unlike the currency issued by a central bank, the money supply of Bitcoin and any other cryptocurrency is limited by their mining capacity. The mining capacity is the total capacity of the entire computers in this world for spending their memories and calculations for trading with Bitcoin or another cryptocurrency.

The future prediction of cryptocurrency is that they will be used for the asset investments like bonds and stocks more than the intermediary of exchange. This phenomenon has already taken place and it is called Initial Coin Offering (ICO). Venture businesses can join the market using one cryptocurrency or issue their own cryptocurrency to increase their share if they have the level of technology to do it. When these ventures become successful, the value of this cryptocurrency is appreciated so investors may purchase this cryptocurrency as the means of their investment.

Many venture businesses have struggled to invite investors from the world due to the regulation imposed by nation-states' government and a groups of big corporations which restricts these ventures from issuing their bonds and stocks. By contrast, cryptocurrency is out of reach of this kind of regulation because it takes place in the globally connected decentralised environment. This innovation offers ventures with attracting prospective investors from all over the world.


6. Conclusion

This year and these coming years will be a tricky time period that both conservative characteristics and innovative characteristics are revealed simultaneously. The small sized businesses and regional activities will be a big fashion trend. At the same time, the style of globalisation will be transformed from connecting big organisations with each other to connecting small institutes with each other in the global level. Many major academics and financial analysts will be challenged by this era of chaotic information flows, and individuals are expected to set their own life plan and estimates in their own daily life without relying on the others.

Tuesday, January 17, 2017

2017 New Year Forecast (3 of 3): A Gradually Emerging Complex & Incomprehensive World & Society

- 4. The Evolution of the Monetary System ------

The wealth gap between countries will be decreasing fast meanwhile the gap between rich and poor individuals will be increasing in the world. The world financial market remains to be active and expanding meanwhile it is become considerably competitive. This is the entire influence of the globalisation on the world financial economic situation. It provides individuals with the wide range of opportunities meanwhile it exaggerate competitions in the wide range. The new era of the information technological advancement combined with the globalisation will gradually transform the international macroeconomic environment and structure. The world monetary system will be based on the dual currency system of both the traditional currencies and the newly introduced digital currencies.


- 4.1. The invention of a digital currency and its influence on the monetary system

In particular, the introduction of the digital currency such as Bitcoin will be beneficial for individuals living in those countries where their national monetary system is immature and constantly in a turmoil situation. Many emerging countries (The term called LDCs and the third world will cease away) will adapt the electric currency such as Bitcoin or something similar. The leapfrogging development of the technological innovation allows various emerging economies in Africa, Asia, and South America to introduce the international electric monetary system like Bitcoin.This is far less costly than improving the already existing traditional monetary policy units. This is similar to the situation that these countries are much easier to adapt the new mobile phone devices and their market competition not restricted by the monopolistic corporations of the landlines.

Even the advanced economies with the relatively stable monetary system will be still impacted by the spread of this kind of digital currency. More individuals in this world will start using Bitcoin or any other digital currency due to the accessibility to currency and the scale of trading places connecting the entire world via the world wide web. So, the market transaction based on the traditional currency issued by central banks will be more influenced by this new market based on the digital currency.


The great advantage of Bitcoin is that its default programme limits the maximum money supply. The money supply can be increased by adding more CPU capacities to calculate in the entire system connecting the whole world. An individual contributing to adding the capacity with her/his PC gain some extra Bitcoin, and this is called mining. The reward of this mining process becomes smaller when the aggregate supply of Bitcoin becomes closer to the supply limit set by the default programme. Therefore, there is no authority which is able to either increase the excess money supply or prevent individuals from accessing to its usage.

In another word, Bitcoin is more likely to be considered as a commodity like Gold. However, Bitcoin enables far more individuals to access to its usage than Gold. This is because it is electrically traded at the speed of light because it is more efficient to set its market value than Gold. The value of this digital is instantly measured by the products traded in this market and their trade frequency via the transaction based on this digital currency. So, its value is instantly adjusted to the purchasing power of the entire world market using this digital currency.


The traditional currency of central banks of a nation or a group of nation will lose its authority over economy, and individuals will start choosing both currencies, the traditional one and the digital one, for each different situation. Central banks will struggle to keep their security of maintaining their authority over the market where their issuing currency is distributed. Any devaluation of and/or any usage limitation of the traditional currency will encourage individuals to use the digital currency more often. Therefore, the authorities of nations and a group of nations will attempt to maintain the royalty of citizens to their traditional currencies so that they will inevitably need to restrict their asymmetric distribution of the money supply which deviates from the optimum level required by the market.

The world monetary system will be the system combining the advantage of both the fixed foreign exchange market under the gold standard and the free flexible foreign exchange market. The value of the traditional currencies will be less deviated from the purchasing power parity due to the influence from the competition with the digital currency. Even though the foreign exchange rate remains to be fluctuating, the value of currency will be much faster to converge to the optimum stable rate in the market. This also implies that it will be more difficult to gain profit from the arbitrage in the foreign exchange market.


All in all, any individuals will be emancipated from the dominance of national monetary authorities. Furthermore, it will be difficult for anyone to maintain their dominance propped up by gaining profit from the market arbitrage. Then, more financial institutes and individuals participating the market will severely struggle in their cut throat competition. These financial corporations will shift to create the alternative model of their investment strategy based on this new market situation, and those who are behind adapting this new model will lose their revenue. Hence, the dynamic transformation of the market competition and the wealth distribution system takes place in not only the real market situation explained in the previous chapter but also the financial market.


- 4.2. The still hotly debated Eurozone future

Both Euro, the currency, and the European Monetary Union (EMU) might remain in the future because it is costly for many EMU members to replace it with their independent monetary system. However, there is a high possibility that some of the members will leave the EMU, and there is still a small possibility that the EMU will completely break up and Euro disappears. The common monetary union has both advantages and disadvantage by means of economic analyses.

It will be highly dependent on the philosophical view of these Europeans to decide whether they preserve it or not. The pure reasoning is not completely based on either an objective reality or a rational decision-making process. It is highly influenced by the subjective feelings of individuals deriving their reasoning. Then, any friction of their daily life events easily change their mind for determining their long term future political decisions. The cause of both the European Union (EU) and the EMU was based on not only the economic purposes but also their political ideal to unify Europe. Therefore, it is unpredictable to forecast whether their will remains to pursue their ideal or some influence on their mind disturbs their pursuit of the ideal.

The future situation is still relatively unpredictable for the EU. Only what can be predicted is that resolving the EMU will reduce the economic strength of the member countries. The world economic trend still encourages shifting to borderless trades and the big economies of scale which the current EMU provides all the Eurozone countries to develop their economy. Therefore, the EMU still have the enormous advantage of maintaining the EMU.

Only the problem is compromising the reform aimed at the further integration of the Eurozone economy including their fiscal integration. Otherwise, the unbalance of the economic environment of each Eurozone country among the EMU will be perpetuated, and it may urge some deprived Eurozone country to leave. Their future is determined by the will of European citizens to pursue development and progress or refuse drastic reforms for their stability.

Thursday, January 05, 2017

2017 New Year Forecast (2 of 3): A Gradually Emerging Complex & Incomprehensive World & Society

------ 2.2 From Capitalism to the Anticipated New Era ------

From now-on due to the information technological development, including both the internet and the artificial intelligence (AI), which has widen the market entrance of both the real-market (dealing with the goods and services) and the financial market (dealing with money and other forms of capital assets). It used to require a high volume of capital investment to open a new business so that those who were already wealthy to own enough capital had a much stronger advantage. By contrast, the current technology enables individuals to gather efficient tools and investment resources from a far bigger information resource than few decades ago.

This leads to the situation where it does not longer matter to seek a heavy volume of capital investment from banks and private investors for starting up a new business as long as any individual has an attractive idea of a new business. In another word, the cost of capital investment has become substantially low. This is one of the reason why the interest rate set by central banks in developed countries is close to zero or even minus. The supply of entrepreneurs will become far more abundant and the market competition among business owners will become far more competitive than it has been.

The traditional bourgeoisie such as the owners of big enterprises are going to face the severe difficulty in maintaining their dominance. These bourgeoisie owning huge enterprises with a high volume of capital are not flexible to change their policies and their organisational structure in comparison to the newly emerging entrepreneurs having started their business with a low volume of capital investment. These new entrepreneurs are far more flexible to adjust their business structure to the market demand and requirement even though their economies of scale is not big as much as the traditional capitalistic enterprises.


The economies of scale are also predicted to be smaller than they have been due to the technological development such as newly invented AI and 3D printers. Furthermore, the division of labour will be more emphasised in this coming era so that it seems to be the case that the industries had better include various independent small enterprises competing and often cooperated together instead of allowing one or few monopolistic big corporations controlling it.

The development of the cloud data base and the close-based administration system also devalue the importance of these big corporations because industries no longer need a big organisation constantly administrating and monitoring the business activities as well as their data-management. These administration tools will be organised by decentralised platforms such as a set of the remotely located hard-drive centres connected via online. The outsourcing will be more popular as there will be more small enterprises offering flexible services with good-quality. Therefore, companies no longer need to marge various departments and divisions inside their company, and these tasks can be easily outsourced.


This decentralisation process will also lead not only the previously mentioned traditional bourgeoisie owning private enterprises but also government-bureaucrats administrating public sectors and the market regulations, who can be called the new bourgeoisie, will also struggle to maintain their dominance. Not only the previously mentioned technological development and the market decentralisation but also the decline of nation-states caused by the globalisation are devaluing the necessity of the bureaucracy. Some of the public sector projects will be outsourced and the communication tool and the administration tools of public sectors will be so efficient that it will require less man-power.

In addition, both the already developed information technology and the newly developed AI will replace many tasks of these bureaucrats. Also, the diversification of this entire world will require anyone including the tasks of the bureaucracy to constantly change enough to frequently requires their skill sets to be always updated or even replaced by a completely new ones. Therefore, the structured static structure of the bureaucracy will be simply inefficient, and it will devalue the level of intelligence, wisdom, and hard-works of these elite bureaucrats.


At the same time, this transformation of the market structure will cause a hardship for the citizens who are already accustomed with their traditional way of living by being employed by a private company, public sector, or any structured organisation. The market becomes far more capital intensive owing to the technological development and the popularlised entrepreneurship owing to the information technology and networks. Then, the number of labour employed will become far smaller than it has been. Therefore, unless they find any new means of living such as starting their own business or any alternative way of sustaining their life, they will struggle to find their means of living. This may result in an increasing social problem of anomie (Normlessness or Meaninglessness) predicted by Emile Durkheim.

Overall, owing capital will become less important meanwhile people will be employed less and market competition becomes more competitive. Because owing (physical and financial capital) will become far less significant to become successful in the market competition, the name called capitalism may be going to be old fashioned. This newly emerging era should no longer be called capitalism although the market competition becomes much complex and intense and the social stratification still remains (It is far from the utopia for all individuals).


- 3. Diversified Education System

As the market becomes far more competitive as well as diverse, the skill sets required for succeeding in this market competition frequently change all the time. In this situation, there is no definitive skill guaranteeing individuals' job security. Then, the compulsory education will be more diversified unlike the current homogeneous plane style of education. As the change of the required skill sets becomes more frequent, individuals will rather prefer learning multiple skills in various methods to spending several years for obtaining one degree.

These organised educational institutes used to be valuable for children to gain an access to the basic educational information and the social skill with the others. By contrast, the primary education system is diversified nowadays and the remarkable development of the information technology enables anyone to gain the access to the education, the essential information required for life, and various diverse social networks. Therefore, compulsory education is no longer essential for individuals to obtain.

Nonetheless, education and nurturing will still be the key critical factors for succeeding to become the dominant class more than it has been. Those who can access to the flexible choice of education and nurturing and be brought up in an emotional stable environment while their childhood are more likely to succeed in the survival in this new era. Then, the family background, the chance to have a right mentor, the relationship with friends and acquaintances, and the living environment endowing individuals with innate abilities will become unavoidable variables to acquire the higher social status.

Friday, December 30, 2016

2017 New Year Forecast (1 of 3): A Gradually Emerging Complex & Incomprehensive World & Society

These days, there are various economic and political downturns and catastrophes taking place. Many enterprises and financial markets are struggling in improving their business performance and securing their market dominance while various new business models and innovative technologies are created at a faster pace than it used to be. The life style of human-individuals is more diversified at a faster pace while suspicion and conflict among individuals belonging to each different social group are intense. Many individuals seem to have far more opportunities to choose their life path while many individuals seem to suffer from their anxiety about their near future, which tend to cause their mental-depression. There does not seem to be any antidote solving these problems, and these problems arise due to the inevitably occurring transition of the entire economic and political structure of this world.

- 1 Astrological Analysis
Firstly, the European astrology provides a useful forecast of what is happening nowadays and the near future. Pluto crosses the ascendant in Capricorn until 2023, and then Pluto is going to be crossing the ascendant in Aquarius from 2023 to 2043. From now onward, the already existing traditional norms and values are gradually replaced by the alternatives. Furthermore, the condition determining individuals' social status is gradually changing. The entire economic and social structure is becoming more complex and less comprehensible.

The time of Pluto crossing the ascendant in Capricorn is a transitional period of norms and values. This time period is gradually transform the vertical relationship of human-individuals. At this time period, various dominant corporations, governments, and military struggle to keep their power. This is why the entire world financial system has crashed in a big scale more than once, many major corporations are struggling to maintain their business performance and their market dominance, and the power balance of the world politics is drastically changing at the fast pace. From now on, the traditional institutes they have belong to no longer secure their life so that none will teach or command what each individual has to do in their life.

On the other hand, the time of Pluto crossing the ascendant in Aquarius is the transitional period of relationships. This time period will be gradually transforming the horizontal relationship of human-individuals. At this time period, there will be alternation and diversification of how individuals interact with each other. There will be a dramatic change in an already existing entire community individuals are living in. This community includes not only the traditional relationships like family, friends, and coworkers but also some abstract relationships such as the online social-networks. In the near future, the already existing communities where they have belong to will be difficult to remain permanently so that nothing will permanently maintain kinship, friendship, and any other relationship.

Overall, from now onward, more individuals will furthermore struggle to find out what they have to do in their life.
Both institutional structures and community-ties will be fragmented and less permanent to exist. However, this phenomenon does not dissolve the political/social stratification which polarises individuals' living standard between the ruling class and the subordinate class. Instead, the method and the nature of stratifying individuals (and their society) will simply become more complex and less comprehensible.


- 2 The transformation of the dominance

Secondly, this world social structure is gradually evolving into a new form based on a more complex and less comprehensible hierarchy. To analyse a complex and incomprehensible crime case and find the true criminal in this criminal case, it generally starts out from guessing who is benefited at most by committing this criminal act. Finding out who is benefited at most in a political/social stratification is quite effective to analyse and understand how human-individuals living in this world will be polarised between the privileged ruling class and the rest majority.


- 2.1 From Capitalism to the New Capitalism

Someone has said that everyone in an advanced country is the middle class citizen because an advanced country provides a citizen with the equality of opportunity to be a skilled professional as an owner of an enterprise as long as this citizen has a merit for it. However, these middle class individuals are often exhausted by their workloads and desperate to opportunities of increasing their income and social-status. They do not seem to have enough freedom to spare their time for leisure. They do not seem to have their wage bargaining power enough to determine their own reward for their contribution to the market.

Karl Marx and his followers blame capitalism for impoverishing majority individuals under the harsh free market competition. However, the form of capitalism itself has been transformed from the early stage of the industrialisation when Karl Marx was alive. The entire condition to determine who can secure their position to maintain their dominance as the ruling class has changed. When Marx was alive, owning capital was the fundamental factor enabling individuals to maintain their privilege of both economic and social status. By contrast, both owning capital and the free market competition no longer secure their dominance.


The skilled professional occupations such as doctors, lawyers, managers of major companies, and scientists, and even some entrepreneurs (mainly owners of small-medium sized enterprises) used to be called the petite-bourgeoisie (which literally means the middle-class) because these occupations did not require the hard physical labour like the proletariat. Their professional skill used to be considered as the capital owned by these skilled professionals so that they were considered to have their own means of production which provides them with the stable income source without their hard physical labour.

By contrast, nowadays, these skilled professionals are busy enough to sacrifice their health condition and time as much as the traditional working-class occupations of the proletariat. These skilled professionals and owners of small-medium sized enterprises may earn relatively more income than the other working class occupations. However, they are far more likely to sacrifice their income and time invested for their higher education and be required to have a strong responsibility over their tasks. Furthermore, they do not look like owning their capital emancipating from the hard physical labour, and they rather look like they are required to put their hard physical labour as much as the traditional proletariat works.

This phenomenon is called the proletarisation of the middle class. When the national economy was developed enough to provide majority of citizens with the equal opportunity to acquire these middle class job with a high social status, the supply of those who have become the middle class dramatically increased. Then, the competition among these skilled professionals has become more intense enough to lower their income level and increase their energy and time invested for their productive activities. They are required to work hard enough to gain their means of living as same as the traditional proletariat. Therefore, these middle class individuals are under the pressure of producing the surplus value with their hard labour as same as the traditional working class so that they should be called the the new working class, or the proletariat-nouveau instead of the petite-bourgeoisie.


The traditional bourgeoisie such as owners of a big enterprise still keep their market dominance. Nonetheless, there are new variables enabling them to maintain and expand their dominance. The management of a big enterprise has become so complicated that it requires a huge volume of bureaucracy as same as the public sector management of a nation state government. Not so many competitors are able to be equip with such a huge complex bureaucratic structure so that those corporations which are already big enough can thrive with little fear from the market competition.

The other variables are the taxation and the excess market regulation which has become far more complex than the old capitalism. Government of a modern nation state imposes various forms of taxation and various regulations instructing entrepreneurs in order to adjust their action to government policies. Furthermore, in order to implement these policies which government force enterprises to follow, it requires a humongous public sector bureaucracy constantly monitoring this complex system regardless of any government elected at each time period. This bureaucracy has become an unavoidable tool of governing a modern nation state and its economy due to the complex nature of modern economy and politics. Then, these bureaucrats in this bureaucracy have their strong influence enough to control the market situation for their own interests, and they are the new ruling class that can be called the bourgeoisie-nouveau.


This new capitalism has transformed the social-stratification, and replaced the old ruling class with the new alternative. Nowadays, there is a new wave of transforming the social-stratification which replace the new capitalist economic political model to another. Due to the rapid development of the information technology and the individuals' network based on it, both owning capital and maintaining the big organisations like big corporations and public-bureaucracies will be less significant to maintain wealth and the dominance in both market and politics.


.............. To be continued.

Thursday, January 02, 2014

The 2014 New Year Forecast, and The World War III (WW3) Predicted

*** The World War III (WW3) Predicted ***

* This is just a simulation, and I hope this world war will not happen in real.


1. The 2014 New Year Forecast:

As it has been mentioned in an article "Sunday, June 27, 2010: According to Kondratieff cycle, the Spring won't come until 2014 at the earliest", the year in the Spring will not come until 2014 at the earliest owing to the analysis based on the combination of Kondratieff 's economic cycle theory, the New Economic Geography theory, and Emile Durkheim 's sociological theory of Anomie. The economic downturn in this half decade was the severest in the world history due to its scale of the impact.

Fortunately, in the world average, the economic downturn seem to have hit the bottom, and some countries' economy seems to have started recovering little by little. America, Britain, and Japan seem to have rode on the track of the recovery according to the various numerical data sets shown by many institutions. The Eurozone is still stagnating due to their undetermined attitude of reforming their economy and the inflexibility caused by the current unstable fiscal policy management. But, the Eurozone seems to put more priority on the stability over the artificially stimulated recovery and strictly impose the austerity plan conducting them to rationally manage their fiscal policy. So, the Eurozone economy will neither rapidly recover nor dramatically fall down. The economy of both the emerging economies and the LDCs still keeps its steady economic growth, even though its speed became lower than it used to be, thanks to the abundant investment flow there in the globalised world economy.

Nevertheless, as the commonsense of economics tells, the effect of an economic downturn are usually lugging over the future time periods, and their scale is huge when the time of downturn is long and the scale is wide. For example, the unemployment created in the previous years will still remain to be high in the present and the near future time period.

The changing effect of the advanced economies over the emerging and LDC economies is also lugging. At the first step of the economic downturn of the advanced economies, the investors usually switch their investing countries from the advanced regions to the emerging or the LDC regions. However, when the marginal return from these investments starts declining, these investors stop investing especially when their income gain from their own home country keeps declining. In addition, when the advanced economies starts showing the sign of economic recovery after hitting the bottom of the recession, the money lenders in the emerging and the LDC economies severely suffer as shown in Asia in 1990s. Because the interest rate of the emerging and the LDC economies are dependent on the investment from the advanced economies, the interest rates of both regions are often highly positively correlated. Therefore, the sudden interest rate rise of any central banks of the advanced economies will increase the total costs of firms in these emerging and LDC economies.

All in all, the backlog effect of the past economic downturn of the advanced economies will hit the emerging economies and LDCs from this year onward. So, the tension caused by this backlog effect of the economic downturn might cause the world political havoc.



2. Potential Conflict between China and India over the fresh water resource:

Both China and India are the countries which are experiencing a rapid economic growth in a huge scale and have a huge population more than 1 billion. When the economic growth of both starts going down, the scale of the negative effects caused by the downturn will be enormous enough to increase the mass's frustration. Even though the economic growth speed goes down compared to the previous years, their government and corporations will inject their economic stimulus to keep their economy growing. They still aspire to encourage their further industrialisation process, and then the natural resource will be furthermore demanded increase their overall productivity.
The most fundamentally required natural resource for industrialisation is fresh water. The other kinds of natural resources are relatively more substitutable than fresh water. The interesting fact is that both China and India, two massive nations, share the same location of their fresh water supply source which is Himalayas. Because both economies are slowly but steadily grows and the population of these two nations are still rapidly growing, these countries will require to secure gaining the water supply. These two countries will want to obtain more territories in Himalayas than the counterpart. So, they may attempt to monopolise the fresh water supply even with force.

The wage growth may start to be lowered with comparison to the price inflation, and the involuntary unemployment may start increasing due to the real wage decline and the switch from the labour intensive to the capital intensive owing to the technological advancement. Because of this slow growth, the social mobility among people of these two nation also will be significantly lowered than the previous years. This economic aspect will cause the frustration among the majority people in these two nations.

On the top of economics, there is an interesting demographic situation of these two nations related to increasing frustration there which may cause the war. Both China and India have a proportionally very high male population as shown in the table below:

The amazing fact is that the male population minus the female population of the 0 - 54 years old is 43 millions in China, and 49 millions in India. The sexually active male population in the present and the near future is enormously high compared to the female counterpart. This indicates that more young males in these two nations will be sexually frustrated.

The majority mass start expecting their nation to expand their business opportunities and to obtain a bigger land mass and more natural resources. On the top of this material needs and wants, the tremendously high young frustrated male population will transform their personality to be more aggressive.
The combination of these frustrations often increases the tension provoking a big war even by causing a small friction between these two nations. Therefore, the friction caused by the competition to secure the potential conflict over the precious fresh water resource in Himalaya looks like a trigger of a war between them.



3. Russian assists India, and they form the India & Russia Alliance:

The geopolitical situation of this world from 20th century onward encourages the antagonism between China and Russia. They occasionally formed an unfriendly alliance, but have never been friendly to each other and often attempted to sabotage the other in the foreign diplomacy. Both China and Russia are the nations who have a strong feeling of pride in themselves. They always maintain their dominance to be a suzerain nation, and so have never approved to be fully controlled by any other nation. Therefore, China and Russia have been competing with each other as the rivals or even the potential enemies of each other. During the time when they formed the alliance, they looked for an enemy of their rival to create a friendly diplomatic tie with to sabotage their rival even though this act could abandoning their alliance.

The other reason why Russia will participate against China is the economically and militarily strong strategic bilateral relationship between India and Russia. Since the cold war, Russia has aided various LDCs to attract them to supporting the Russian side. Even though India kept its solid politically neutral stance in the Cold War, the diplomatic relation between India and Russia became friendlily attached to each other. India was the best alternative LDC to form an alliance with when China was not reliable. So, Russia was eager to establish a close friendly bilateral relation with India. Then, Russia acted as a foreign diplomatic mediator peacefully intervening between India and Pakistan, and helped Bangladesh to be independent from Pakistan. Even though Russia tried to keep this matter fair and peaceful, the contemporary Russian attitude in India continent looked India leaning doing more favour for India.

Furthermore, because China and India have been conflicting over the territories near their national boarder for a long time, China felt unpleasant about Russian friendship with India. This story has induced China and Pakistan to form the alliance as both recognised each other under the doctrine "An enemy of their enemy is their friend".

Even nowadays, this geopolitical situation has been kept as same as it was during the Cold War. This is because that their political alliance is not based on the shared political ideology: Their diplomatic relation is based on the materialistic interest in each other. India needs Russian technological aids and Russian assistance to fight against both China and Pakistan. Russia needs India as a trade partner who has the economic advantages which Russia does not have as well as to avoid China being monopolistic.


4. Reaction of the world:

Because China and Pakistan form a very close bilateral relationship, they will also form the strong friendly alliance together in the predicted war. By means of the size of a nation, their bilateral relationship will be based on an unequal relationship unlike the India&Russian alliance, and so Pakistan will be rather treated as a satellite nation of China. The interesting aspect of the international politics is that China has developed the remarkable trade relationship with the Middle East and Africa for over a millennium. Nowadays, China still retains this tradition so that China has been aggressively aiding and investing to these nations in the Middle East and Africa since China succeeded in its rapid industrialisation. Even while the USA encouraged all over the world to negatively sanction many of these nations, China did not stop its relationship with them.

The role of the developing countries with the emerging economy will be more significantly important in the new world political economic situation. Under this globalisation, the gap between the advanced economies and the LDCs will be furthermore minimised. The advanced countries will no longer experience the rapid economic growth meanwhile the rest of the world will still grow. So, attracting the support of the emerging market will be the key to hold the initiative in this predicted war as well. Therefore, both sides, the India&Russian alliance and China, will more focus on attracting the attention of these emerging market than the North America and Europe.

The key factors to forecast which countries in the world support which side, the India&Rusian alliance or China, are the historically long relationship, the proportion of the shared common ethnic group, how much China has invested to Africa, the Middle East, the Central Asia, and South America, and how different nations value China as

The majority of the European European countries will be Russian satellites due to the close ethnic and political characteristics. Even though these country have some citizens who wish to keep a distance from Russia, the political pressure groups there will be proactive to maintain their country to be loyal to Russia.

Myanmar and many central Asian countries will be China's satellites because of the massive investment from China. Malaysia and Singapore will be China leaning because of the high Chinese population. Indonesia will suffer from the dilemma between supporting the joint cause of China and Islamic countries and remaining the anti-China policy for its independent sovereignty.

Africa is the mixture of pro-China and anti-China nations. Even though majority of African countries will support China due to China's rampart investment there, there still sufficient number of countries which remain their diplomatic attitude as anti-China.

South America will be divided into the two side. Brazil's political attitude of anti-China and pro-Russia will encourage Brazil to be a remarkable satellite nation of the India&Russia alliance. Chilli also shows far away from the relationship with China. The totalitarian countries whose political tie with China is strong such as Cuba and Venezuela will become China's satellites. The other countries not politically but very economically close relationship will be China leaning.


The United States of America (The USA) will neither aggressively nor directly intervene this war between the India&Russia alliance and the alliance of China and its satellites. It does not fulfill the USA's national interest by leading either side to completely win over the others. The intervention of the USA will be indirect and implicit. The perpetuation of this war will benefit to the weapon factories in the USA so that these US war merchants will secretly sell their weapons to abroad. However, relatively speaking, the USA will be more supportive to the India&Russia alliance for the strategic reason. The USA will attempt to maintain Taiwan's independence and secure the existence of Israel, and this action will antagonise both China and Islamic nations in the Middle East.

Japan will keep its indecisive attitude in the foreign diplomatic relations, and let the others to determine how Japan should react. During the Cold War, while Russia was threatening Japan, China came close to establish a friendship with Japan. From the end of the Cold War to the current time period, China started threatening Japan. Then, since the USSR collapsed, Russia and Japan have no longer become a significant political enemies any more. So, Russia stated to attempt to approach to Japan for a friendly diplomacy in order to counter China's threat together. India also shows its interest in assisting Japan militarily threatened by China.

Europe will be divided into three groups, China-leaning, Russia-leaning, and neutral. Because Europe has no longer hold a strong initiative over the world economy and politics, European influence will be not significant compared to countries in Asia, Africa, and South America. The core member states of the EU such as France, Germany, and Benelux countries will be relatively more China leaning because of their conflicting relationship with Russia. Some EU nations which have a strong anti-China sentiment among their citizens will be relatively more Russian leaning. The deep Eastern Europe will be under control of Russia. The UK and Ireland will keep their neutrality, and attempt to keep the diplomatic tie with both sides. Overall, Europe's involvement into this predicted warfare is very minimal because they will be too preoccupied to solve their own ongoing economic and political problems.


The map below is drawn by the previously mentioned analyses:



5. Hot, Cold, or Mild War?

If it is to happen in real, this war will be the mild war. The number and the size of the total wars which will take place will not be big as much as the previous two world wars but will be bigger than the Cold War. There will be guerrilla warfare frequently as much as the Cold War. This war will be more intense and direct than the Cold War. The temperature of this predicted war will be mild, neither hot as much as the previous two WWs nor the Cold War.

This analysis is just a simulation to forecast what will happen if the aforementioned tensions become serious so that the war is not officially predicted to be provoked. Nonetheless, this analysis will help to forecast the economic and political dynamic changes in this world from 2014 onward.