Wednesday, April 30, 2025
Why is it Important to Study Spain?
The Decline and Fall of Elon Musk and Steve Bannon
Saturday, April 5, 2025
Magnitude of Trump Shocks
Wednesday, March 5, 2025
Blog Roll
No, a blog roll is not a WWII hair style (Victory Rolls), it's just a list of my blogs and the blogs of other writers I find interesting (see the right-hand column on the web version). I started blogging in 2009 and received a lot better feedback at the start. Now, social media has thrown a pail of cold water on the blog-o-sphere, but things (I hope) are changing. Social media has become a cesspool of political opinions and vented grievances, but that has a use too. I've also become a little disenchanted with academic journals which seem to be more connected to career advancement (I'm retired). So, I will continue blogging. Let me pull my blogs out of the BLOG LIST in the right-hand column (if you are viewing this on the web version) and explain why I have so many.
- Random Noise (this blog) is mostly just a collection of intellectual curiosities without statistical proof (doesn't that describe most academic journals?). At least none of my writing here has been peer reviewed (censored). In any event, peer review is about to be taken over by Artificial Intelligence (AI) so you can do your own reviews of my writing.
- Facts, Fictions and Forecasts I devote FFF mostly to World-System forecasts, that is, countries of interest in the World-System and the World System itself (the WL20 model). I use techniques similar to the Economy Now app of the Atlanta Federal Reserve but create alternative scenarios similar to those used by the IPCC Emission Scenarios. I also do not limit myself to GDP, Inflation or CO2 emissions but construct forecasts and scenarios of anything I find interesting and have data.
- World-System Conjectures The Conjectures are also mostly statistical analyses of historical systems. Data are mostly drawn from the World Development Indicators, the Maddison Historical Statistics, the historical statistics of individual countries and my dissertation on Germany.
- Random Variation In RV, I write about Dynamic Component Models (DCMs) and other statistics techniques (Hierarchical Linear Models, HLMs). The DCM models are a generalization of Stock and Watson (2012) Diffusion Indexes and uses a modification of the dse program written in the R programming language. Most model code is available here.
- Random Stock Walker a blog devoted to stock market forecasts (I'm not sure the stock market can be forecast but I do test each stock index with a Random Walk Model).
- Economic Bubble Machine A blog devoted to explaining economic bubbles such as the Great Depression (actually, the bubble was the Roaring Twenties).
Thursday, February 27, 2025
Markets Won't Save Us: A Proof
Jeff Bezos has recently made changes to the Washington Post (WaPo) editorial policy to emphasize "free markets and liberty" (here). Sorry Jeff, "free markets" won't save us (no matter how much the WaPo writes about them) and here's the proof.
But first, I'm reading an excellent book by Quinn Slobodian titled Globalists: The End of Empire and the Birth of Neoliberalism. I haven't finished it yet, but I would recommend downloading the Kindle version (yes, this gives some money to Mr Bezos but I appreciate Amazon); it's an easy read on your phone while your are waiting somewhere for the future to emerge. The book goes into the entire history of Neoliberalism (not just the US version) and Neoliberalism is all about markets. Basically, the European Neoliberal argument is that the economy is too complex to understand with simple mathematical models (the Limits-To-Growth Models or the Neoclassical Economic Growth Model or the DICE model) so we have to write laws protecting self-organization markets, the only reasonable way we know to control the Economy. Unfortunately, markets won't control both the Economy and the associated Environmental Systems to include the Demographic system. Here's the proof.
Notes
Tuesday, December 31, 2024
China's Long Malthusian Crisis After Mao's Death
Thomas Robert Mathus (1766-1834) died 180 years ago but his Essay on A Theory of Population (you can read it here, but few people have) continues to stir strong controversy and continues to be misunderstood. Karl Marx (1818-1883) considered the assertion that growth would outstrip agricultural production a libel on the Human Race since it was the Capitalist System that would likely fail to produce enough food. Kenneth Boulding (here) was the first to reformulate Malthusian Theory as a General System and point out that it was simply a truism: population growth could not outstrip economic production without creating a crisis. In this post, I will apply a statistical systems model to the Economic growth of China after WWII that clearly identifies the Chinese Malthusian Crisis that lasted from 1975 to 2005 (see the model outputs in the graphic above).
Population, when unchecked, increases in a geometrical ratio. Subsistence increases only in an arithmetical ratio (An Essay on Population, p 4).
Malthus was not a systems theorist. Systems Theory had not been invented when Malthus wrote in 1798. The quote above is what has made it impossible to reason with Techno-optimists. Malthus was trying to lend some mathematical rigor to his analysis. It made his two equation theory testable and falsifiable. It can easily be proved wrong and is a perfect scientific hypothesis. So why are we still talking about Malthus? Systems theory, invented in the Twentieth Century, allows us to restate the Malthusian theory in a general form that continues to be testable, useful and not casually falsifiable. It is useful because conventional Liberal Economic theory has nothing useful to say about population growth. It is simply an exogenous force that a stable economic system can always accommodate. Liberal Economic theory also has nothing useful to say about unemployment, depression and societal collapse--all these problems are important for China (see below).