Europe in crisis...!

Definitely a strict crackdown on Greek treasury, and a fundamental Eurozone wide reform are required ASAP!!

No more liquidity (buying the bonds by printing excess amount money) 'cos it causes a further interest rate hike up* which discourages the private sectors! Greek economy unfortunately won't be allowed to leave the Europzone 'cos my regression analysis showed Greece economy is highly co integrated with the entire Eurozone economy!

(* Usually when the excess money supply goes into the market, the interest rate often falls if the economy has been in recession which is caused by lack of the aggregate demand which induces the excess supply. The US and Japanese case of the excess money supply caused the lower interest rate. However, European economic problem is not caused by the demand&supply fact; it is based on the "structural" problem. Therefore, it is more likely to cause the hyper-inflation, i.e. need of high interest rate for borrowing, instead of the liquidity-trap, the deflation.)

Greek economy is actually highly reliant on the Eurozone economy... Greek system should be more intervened by the European central government! The silly idea of the Eurozone is that it still allows each member to incur the national debt under the common monetary policy...! This is the same silliness as though allowing each state in the USA to hold its own public debt without complete separation of the states and the federation!



When I read the Wall Street Journal on 10th of May, this American news paper claimed that European economy will be drawn into the insoluble fiscal chaos due to her extremely tolerant attitude toward the irrational European populism... This fiscal chaos won't be overcome unless a strong (even oppressive) enforcement on fixing this fiscal imbalance and the irrational populist influence on the fiscal structure...

... I must say that the Europe suffers from the tyranny of majority as same as Japan! Therefore, any rational movement hardly takes place...

But, unlike Japan, the integrated European economy has a full of potential! An affluent human capital development, variety of factors of productions from different European countries, and the strong capitalist ethics which has been developed over centuries!

"Europe needs an iron-lady" as same as Britain had. But, the problem is that this scale of the economic failure is bigger than what Britain suffered from in the past. Therefore, the figure which is larger than British iron-lady...! But, the tyranny of majority won't accept such the "to be cruel to be kind" method as this majority is already spoiled by the illusion of their Utopian dream.

This is the same as Japanese tyranny of majority expelled Mr. Kakuei Tanaka, the admirable Japan's former prime minister, who thought of people better than what people thought. Mr. Tanaka was the person who could make Japan truly sovereign and enlighten Japanese people to be evolved from poppets to independent minded citizens! The similar event is now taking place in the Europe... If the tyranny of majority is strong enough to oppress the talent, it fails into the problem seen in both Japan and Europe!!

... "In order to defeat a monster, it needs the monster stronger than this monster...!". Hence, the tyranny may be only able to be defeated by another tyranny which is stronger than the current tyranny...............

Milton Friedman, Income Distribution, Matter of live, and Nihilism

Professor Milton Friedman, the counter-revolutionary economist! He denouced socialist economy as an oppressive totalitarianism. Although I disagree with some parts of his macroeconomic theory, I strongly support his political point of view as a laissez-faire capitalist theorist!!

He supports the idea that Adam Smith told that "The poorest in a rich country is certainly better-off than the richest in a poor country because the former has a much better access to the wealth and the culture than the latter. Therefore, the relative income inequality is often irrelevant. The more significant inequality is the "capability" such as avoiding envy, competence, opportunity, and the business cycle.

The deprived individuals themselves are sometimes responsible for their own situation. If it is not merely due to their own responsibility, the family they have been brought up are the fundamental problem! Who want to support someone not-known or hated without any reward? I do not want a government which enforces us to sacrifice our precious property to save those whom we are not associated with and whom we even hate so much!! If I were going to be such a deprived situation, I would rather choose to die without any pseudo moralistic hippocratic sympathy and any antipathy for my misery...! I would be rather happy to become alone to live myself than be made survived by those whom I hate to be enforced to live...!

...... The life is not the matter of live, it is the matter of how to die!!!




The way anti-Friedmanites criticise Financial Liberalism as the cause of the last Asian financial crisis in 90s is too old!

Of course, Stiglitz said these Asian economies did not leave the enough reserves. This is because they had to rely on the revenue coming from the excessive amount of financial investment in order to sustain their economic growth. At that time, this caused the bubble burst.

However, this crisis was caused not only because of the Financial Liberalisation, but also the lack of foreign direct investment (FDI) due to the fact that the world was not enough globalised then.

Nowadays, in development countries, the opposite case scenario from the 90s is happening. They always "increase" the reserve, instead of reducing the reserve!

In the current globalised world, these developing countries do not need to reduce their money reserve because they can crave the FDI from abroad. Therefore, unlike the 90s, they do not have to reduce the reserve any more, and keep their Financial Liberalisation goes by remaining the reserve ration sufficiently high.

Although what Stiglitz said was right as the contemporary time period, Friedmanite counter-revolution brought a big benefit to the global financial market! As the world is more globalised, there are more FDI opportunities for these developing countries! Therefore, they no longer need to make their financial market repressed by the state's control to stimulate their economy by creating the inflation as the cost of this stimulus!!

Financial Liberalisation encouraged raising the interest high enough to calm the inflation! Friedman is great to make us remember how costly inflation is for the lower income people!! The financially repressed economy conducted by state public sectors always causes the inflation unless they artificially repress the aggregate demand such as the USSR did!

In the past, there are only two choices, the financially repressed economy with an intense state intervention with a high inflation rate and the financial liberalisaion with a more flexible private sector based economy with the interest rate flexibly adjusted to the inflation rate with a risk of declining the reserve ratio.

Of course, the latter choice is far better than the former because it gives the freedom of choice (better than a lot of employment artificially created by the state) and the anti-inflation management (Again, the inflation is very costly to the majority of people including both the middle income and the lower income) . In addition, nowadays, they no longer need to reduce the reserve ratio (Actually increasing by financial liberalisation nowadays!) because they can seek the FDI to keep the sustainable reserve ratio! Therefore, although what Stiglitz said was correct at the contemporary time period, but Friedmanite movement was correct as well in order to expand another possibility of the global financial market evolution!!


Viva! The Cold War is over thanks to our liberal capitalists' victory!

Good characteristic of the United States of America (USA) as an experiment of the liberalist nation!

Unlike Europe and Japan, the USA does not have a strong constraint of the "tradition" and "class"! Although the constitution and Christianity are sometimes regarded as the "tradition" (This is the US characteristic I detest), the USA regards highly of "meritocracy" without taking family, educational, and any social class background into consideration (without using a big government intervention: It is based on people's general will!!), flexibility in industries (E.g. accounting, labour mobility, etc), and pluralism (E.g, More people are integrated into the main stream culture than those in Europe).

Europe is more rational and secular when they establish a legal system, argue about moral and ethics, and revise their civilisation (Actually, the US people tend to think their nation is a utopia regardless of the political ideology; conservative Christian Republican and progressive secular Democrat.

However, Europe suffers from the negative effects of Welfare-state, whose socialism is tolerated under the interest of European nobles, people's stereotypical perception of social backgrounds, and inflexible ways of industrial management.

I know both Europe and the USA are much better than Japan which suffers from the disadvantages whose personality is the combination of the negative and unproductive characteristics of both the USA and Europe. Japan and Japanese conscientious people (I've never expect anything like that for stupid insane Japanese mobs!) have got to learn from the comparative study of Europe and the USA...!





One of the greatest aspects of both North and South America is that, unlike Europe and Asia, they have never had to be worried about the threat of losing land and the state of war among endogenous people. (The Civil War was provoked by neither the threat of losing land nor class war (Some historians say it's because of the class war, but it is not the main cause)). Therefore, neither national socialism such as Fascism and Natizm nor proletarian dictatorship (Cuban revolution was based on the interest of the entire Cuban people, not the proletarians against the endogenous bourgeoisie) has never come into the power!

Furthermore, I admire the USA as the father of Libertarianism! It showed the possibility of anti-traditionalism and laissez-faire economy work well to establish one strong and remarkable civilisation! Unlike the experiment of state-socialism such as the USSR, the experiment of liberal (by means of European definition) economism worked!

Nonetheless, I am only sad that the last US Republican party regime distorted the original identity of the USA. It undermined the liberalist establishment... I am happy to see that the current US democratic party regime under Mr. Obama's conduct seems to replace the distorted establishment with the original idea of the US establishment of liberal integration among people and the frontier spirit, which have been once seen in J.F. Kennedy's regime...!


Ref. (Written in Japanese): http://hansenjuku.cocolog-nifty.com/blog/2010/07/post-b06b.html

Political Spectrum (Political Compass) Civilisation basis

Political Spectrum (Political Compass) Civilisation base:


* This spectrum refers to the following resources:
- The Political Compass dot org
- Inglehart-Welzel Cultural Map of the World
- The Pournelle Political Axes
- Redefining the Political Spectrum - The Rational Spectrum

- Economic Political Spectrum Part 1: Big/Small Government no longer matters
- Economic Political Spectrum Part 2: Rationality and Proactivism
- Economic Political Spectrum Part 3: Not the parties, it is matter of civilisations

World Economic Forecast in 21st century and after

The map above explains the volume of the future economic growth in different regions in the world. The predicted volume of economic growth shown in this map is measured by the variables shown in as follows:

A1. The overall market potential indices (Click the link to read what this word means).

A2. Geographic advantages such as the short great circle distance from economically active regions, capability to have a good dock, being neither landlocked nor island nation (not significantly affecting developed nations and Asian emerging nations, but significantly affecting majority of least developed economies).

A3. The growth in productive population growth relative to the unproductive population growth (reasonable birth control, affordability of general education and parental love for children, and adjusted population growth to economic growth and land-capability).

A4. The human capital development (E.g. Education, Individual Liberty and Right, and Rationality). This affects the speed of learning newly introduced technologies in the world, adapting them to produce and sell newly introduced goods and services created, and ability to invent an original new technology themselves by referring to existing technologies.

A5. The natural resource reserves, which create a trade surplus. The impact of benefit from it is bigger in emerging economies and least developed economies than developed economies, but some developed economies are able to develop further more than the other developed economies due to the extra surplus by extracting natural resources.

A6. The political and social stability in both the present and the future time period.



On the top of these variables applying to scaling the predicted economic growth of all kinds of economies, there are the other variables which only scale a particular kind of economies. There are two main different characteristics of economic regions introduced in this essay, the Northern economies and the Southern economies.

The Northern economies, shown in Blue, are those whose economic growth is mainly stimulated by the variables shown in as follows:

N1. European rationalism and strong egalitarianism (except for Russia) which influence the level of intelligence per head,

N2. Newly introduced trade integration such as the Eurozone economy which benefits to the Eastern European nations,

N3. Philosophy influenced by ancient Greco-Roman philosophies and Christianity which are ones of the remarkable variables implanting the spirit of capitalism, such as contract, fairness, honesty, ideality, individuality, trust, and unity, into ordinary individual citizens' mind,

N4. Various scientific innovations. Majority of them are innovated in the Western civilisations including the former USSR block excluding Islamic areas. The currently most notably advancing Western civilisations are Germanic and Scandinavian nations.

N5. Not suffering from negative assets of the past imperial period. Not only Spain, Portugal, England (So, exclude the other regions in the United Kingdom), and France, but also Japan (Not only before and during the world war 2 but also the post war period economic imperialism) and the United States of America (USA). These three following things are the negative side effects of their past imperialism haunting on them:

n5.1 The economic sunk costs caused by a rapid decline in their holding power,
n5.2 Inattentive and negligence due to their arrogance of the old glory,
n5.3 Mobocracy of the mobs spoiled by a habit of extracting their wealth from the wealth accumulated in the past (The over expansion of economy causes a severe downturn in the future. The bigger nations are less likely to avoid this situation than the smaller nations)

* The Soviet communist regime can also be seen as another form of imperialism. But, this imperialism had never brought any significant prosperity enough to leave these three pathologies. In another word, the communist imperialism has failed to be a prosperous imperialism so that it was an unsuccessful imperialism.



The Southern economies, shown in Red, are those whose economic growth is encouraged by the variables shown in as follows:

S1. The strong politically and socially cohesive policy, which is remarkable to support a strong but sustainable economic growth by uniting all different cultural identities and economic and social backgrounds of citizens by selecting one charismatic political authority as the opinion leader. A strong but sustainable economic growth resulted by this policy has been seen in the Eastern world for a long time and is recently introduced in many South American and some African nations.

s1.1 Some nations use the development dictatorship based on rational-secularism which is most notably seen traditionally in Asia, and recently in Latin America and some African nations;
s1.2 The other nations use the common religious value as a symbol of unification such as theocracy in almost all Middle-Eastern nations and majority of African nations.


S2. Stable urbanisation process. This variable is related to the variable A3 (The growth in productive population growth) the variable A4 (The human capital development), and the variable A6 (The political and social stability). Nowadays, thanks to the globalisation encouraged by the rapid information technological growth, people in emerging and least developed economies have become able to copy the newly introduced knowledge and technologies, and use them to produce better goods and services. But, in order to grow their economy by this process, they need to fulfil these three following conditions:

s2.1 They need to improve and develop their education system to become able to copy the newly introduced technologies.
s2.2 They need a huge population in either their homeland or neighbourhood countries, or both, to sell these goods and services faster to grow their business.
s2.3 In order to accomplish these two objectives, the political and social stability is significantly required.

All in all, these nations require an urbanisation of their economy, which means increasing population density, which enables people to exchange information and physical resources each other fast. The urbanisation requires a huge population already existing. Therefore, an already highly populated nations tend to have an advantage.

Furthermore, the urbanisation lowers the cost of developing human capital because the speed of exchanging knowlegde and technology becomes faster as the place become urbanised. The cost of developing human capital used to be a big obstacle for least developing nations when there was a huge barrier of exchaning the information. The Cold War used to block flexible information flows in the globe, and the ongoing political unrest disrupted people in these nations united. Nonetheless, both The end of the Cold War and the rapid information technological growth since then brought a globally free exchange of information flow. In addition, the knowledge and the wisdom gained from this flexible information flow have enabled people there to become harmonised with themselves. This aspect of the globalisation has made the harmonisation and the urbanisation tremendously easier than the past

Unlike the North economies where people have been already unified under the strong common identity and the stable political and social environment, the Southern economies tend to lack of the unification seen in the Western economies. In order to concentrate people together into one area, the political stability and the community harmonisation are highly required. In particular, in these Southern economies, the conflict between different identities tends to be an obstacle of their urbanisation process. Therefore, the variable A6 (The political and social stability) is a key element to achieve their urbanisation.




S3. The power to monopolise the geographic advantages. This variable is related to the variable A2 (Geographic advantages) and the variable A3 (The growth in productive population growth). The typical example is Singapore before Malaysia built a large scale industrial port. At this time, Singapore was only the country in the strait of Malacca so that Singapore could monopolise the revenue coming from the logistic industries, the processing industries, the financial industries (at this time, it needed to rely on geographic advantage far more than nowadays) and the tourist industries. However, since Malaysia built a new large scale industrial port in the own land, the market in the strait of Malacca has become oligopoly so that Singapore has become no longer able to exploit the monopolistic power there.

In already developed nations (In 20th century) such as Western Europe (some Central and Eastern European nations became developed in 21st century though), North America, Australia, New Zealand, and Japan did not hugely have to rely on the geographic advantage because these developed nations already had a self-sufficient domestic economy. By contrast, nations of both emerging economy and least developed economy need to rely on the revenue come from the international trade before they are fully developed enough to have a reasonably self-sufficient domestic economy.






The overal summery of these economic predictions is that all economies depends on the Market Potential (i.e. Geographic advantages, the high demand volume of exports from these economies, and the high human capital development ration) without a doubt. The Northern economies is strongly affected by whether or not past imperial experience haunts, and has better potential if they are located North much as possible (More North tends to be more human capital). The Southern economic growth is significantly correlated with their population more than any variable, and the some geographic advantages such as having a good location to build a good large scale industrial port and having natural resource reserves.

Science and Logics are subjective: Mathematics is only the objective science!

Einstein and the modern physicists amended this formula into
E=MC^2
, which is the main stream theorem.

The old Newtonian model, E=MC, had never tested to assess whether it fit in with how actually the geometry worked in the real world. This formula was based on a pure assumption.

However, all natural science models, except those based on statistic modelling method, are problematic and highly subjective as same as logic.

The mathematical model is useful and costless, however all the signs and the sensitivities in the formulae are just assumed rather than produced especially in the old days when the computer technology and the statistic theories were not developed enough.

The reason why natural science is subjective as same as logic is as follows.

As a matter of fact, the results determine the theories rather than the theories determine the result in natural science. All scientists create their theories by finding the result to model them. However, many scientists always think that their theories contribute to find the results, and their thought is a completely false belief and merely a propaganda to make mass believe they are the authority.

Einsteinian and modern scientists' amendment of Newtonian science is the typical example. As these modern scientists examined how the geometry worked in the real world, they finally found out that the energy was not linear as what Newtonian scientists assumed; and then they changed the formulae.

Furthermore, these scientists claim their theories produce the mathematical models. Nonetheless, this is also the false assumption. They create mathematical formulae which "look like" as though they fit in with what the variables move. But, these formulae hardly become perfectly fitting with what the variables move in the real world because there is always an error (a residual in their formulae). The formulae may be valid if the error correction model proves the error tends to be corrected.

Nevertheless, this does not encourage to believe the theories produce the mathematical models: It is more likely that the mathematical models find the most appropriate theories. For example, in electro-magnetics, a physicist tried to make a mathematical modelling which models the movement of electro-magnetic by using various variables this physicist thought needed. However, the model did not fit in with what the movement is actually is. There is only another variable in the formula was needed, but this physicist did not know what this unknow variable was then. The task for this physicist then became to find this additional unknown variable. Then, this physicist finally found it, and tried the scientific experiment by referring to the new formula!

As Immanuel Kant, the famous German philosopher, said mathematics could be the only science which is objective.

Only the sets of "a priori", the objective measure verifying the knowledge emphasised is absolute, in the physical world (which is what I also called "the real world" in this article) are latitude, longitude, altitude, time, and immediate feelings. The other physical knowledge, in past, present, and future, only comes from the bias induced by subjective feelings and "expected" outcomes.

Logic does not have an objective measure to self-contradict to proof this makes sense unlike Mathematics which has a strong objective measure called "Axiom".

Scientific knowledge based on assumption offered by scientific logic is therefore not objective and highly subjective because it is awfully biased by the subjective assumptions.

If formulae and their variables, signs, and sensitivities are found by statistically analysing the data sets found in a survey or experiments in our real world, these formulae are at least verifying to be based on a priori of the physical world, latitude, longitude, altitude, time, and immediate feelings, and the mathematical world, axiom. Therefore, they are more likely to be objective.

Statistical models are useful to make semi-objective formulae because they can be proved and self-contradicted by "a priori" unlike the formulae and their variable, signs, and sensitivities are based on assumption based on pure logic.



* The following quote is based on what John Locke, the British philosopher called the father or liberalism, Immanuel Kant, one of the most influential modern German philosopher, and one of my mathematics teachers in one of the universities I graduated from stated:

... I believe in God; God is a fundamental axiom of our world; mathematics is based on axiom; both axioms, God and mathematical axiom, are "a priori", the objective measure verifying the knowledge emphasised is absolute; Mathematics assesses axiom; God and mathematical axiom are absolute; Mathematics has a power to assess something equivalent to God, the absolute being; The existence of God could be inferred by mathematics as John Locke stated in "An essay concerning human understanding"; As my Mathe teacher said God may admire Mathematics then; As my Mathe teacher said, Mathematics is equivalent to or more powerful than God; Therefore, I admire and believe in Mathematics, based on axiom, and Statistics, based on both mathematics and "a priori" of the physical world which may be called as God, as the only objective science!