Results for “berlin”
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Germany is not really with the Western alliance

Germany has proposed basing most of the 3,500 extra troops it plans to contribute to Nato forces on its own soil rather than in Lithuania, significantly softening its initial backing for more foreign forces to be stationed in the Baltics to deter any potential Russian aggression. Vilnius and other capitals on Nato’s eastern flank have in recent weeks called for an increased military presence on their territory. German chancellor Olaf Scholz expressed support earlier this month for boosting the multinational troop presence that rotates every six months in the region. According to western officials, Berlin’s latest proposal is for a brigade to be stationed in Germany and deployed to Lithuania — where it has led the existing 1,000-strong multinational battle group since 2017 — only if needed.

Here is the full FT piece.  And how many heavy weapons has Germany sent to Ukraine by now?  Any?  People, as I have noted repeatedly it is time to wake up on this one — there is something rotten at the heart of the Western alliance, and it has been obvious for many years.

Saturday assorted links

1. Mathematics: “Many papers have errors, yes—but our major results generally hold up, even when the intermediate steps are wrong!”

2. New Gena Gorlin Substack on building and builders.

3. When Leo Strauss asked out Hannah Arendt she sort of cancelled him.

4. Vitalik on Wordcels, liberalism, and more.  Some important germs of thought in there.

5. Will Berlin ban cars in the city center?

Saturday assorted links

1. The forgotten medieval habit of two sleeps.

2. Serbian government strikes back.  What again is the CBA on that immigration decision?

3. Germany won’t let Estonia transfer weapons to Ukraine (WSJ).  I’ve been telling you for years that Germany is not really part of the Western alliance any more.  It is now all the more obvious.  Addendum: And get this (FT): “Ukraine said it had summoned Germany’s ambassador to protest comments by the head of the German navy, who was filmed saying Russia only “wants respect” and Ukraine would never regain Crimea, remarks that have plunged Kyiv and Berlin into a damaging diplomatic row.”

4. Excellent Colm Tóibín piece on James Joyce’s Ulysses at 100 years (FT).  One of the best pieces I’ve read so far this year.  And speaking of the FT, Janan Ganesh argues that Los Angeles is the West’s most underrated walking city.  Of course he is correct.

5. Dubov refuses to wear a mask and thus forfeits a chess game against Giri.

6. Who are various readers nominating for President?

Reader request on Herbert von Karajan

From Sean:

From his NYT obit: “But Mr. Karajan was always more than a mere conductor: he was a man of enormous energy and careerist determination, and he managed at his peak, in the late 1950’s and early 60’s, to tower over European musical life as no one had done before or is likely to do again. His nickname at the time was ”the general music director of Europe,” leading the Berlin Philharmonic, La Scala in Milan, London’s Philharmonia Orchestra, the Vienna State Opera and the Salzburg Festival.”
Is this true? How was he able to do this?

A few observations:

1. In that time the central European classical music canon was far more dominant than it is today (later this month the NSO is doing Beethoven with William Grant Still, for instance).  That made the dominance of a few figures such as von Karajan and Klemperer, who specialized in that repertoire, far more possible.  In America, Germanic culture was more influential as well.

2. There was overall less conducting talent around at the time.  Yes, I know the beloved status of your few favorites from back then, and their unique styles, but conductor #30 today, in terms of quality, is far better than before.  Today it is harder for anyone to stand out.

3. The authoritarian and possibly abusive management style of von Karajan was far more acceptable back then.  Without that style, he could not have honed such a unique sound.

4. Back then conductors actually could sell classical LPs and bring in revenue.  This helped enable many of von Karajan’s projects, including costly operas and symphonic cycles.  Whether he would have done as well on YouTube, or other more contemporary media, is very much an open question, but probably not.  He was very much a “whole package” sort of musical star.

4b. Radio really mattered too.  His distant and forbidding but legendary personal style worked well in that medium, and the “always forward impetus whiplash” sonics cut through the poor sound quality.

5. I grew up with von Karajan’s recordings in so many parts of the repertoire, but how many really have held up?  His Bruckner’s 8th and Mahler’s 9th are incredible.  His Cosi is amazing, though too rigidly controlled for my taste.  His Verdi Aida.  A big thumbs up to his Mozart #40 and #41.  But the Wagner I don’t listen to any more.  Never loved his Beethoven cycle.  Rarely is he the conductor in my favorite concerti performances, as he tended to blunt the styles of his accompanying soloists.  Would I ever prefer him for Haydn, or for French music?  No.  Definitely some Strauss (the conductor most suited to him?), or perhaps his Tristan?  I feel I could get 85% of his value with maybe five recordings?  In a way that is quite impressive, but it does put matters in perspective.

6. He was a Nazi, and perhaps that would go over differently today.

7. In short, that was then, this is now.

That was then…

Here is an excerpt from Arthur Moeller van den Bruck, the guy who coined the term “The Third Reich” (hint: he wasn’t against it):

The Left has reason.  The Right has wisdom…Masculinity is the essence of wisdom.  It takes character not to succumb to self-delusion.  The conservative man possesses this character as well as the physical prowess and moral determination to act in accordance with this character…He has the innate ability to pass judgement, and to make deductions, to recognize reality…Conservatism is based on an understanding of human nature.

That is from the new and excellent book Nazis and Nobles: The History of a Misalliance, by Stephan Malinowski.  This book builds on themes from Arno Mayer’s old and excellent The Persistence of the Old Regime.

It is an interesting question why these sentiments — some of which are cliched rather than offensive per se — are as correlated with fascism as they are.  In my oversimplified model, feminization is the key variable.  Van den Bruck saw the feminization of society coming, and opposed it, but I believe he was more interested in Nazism and fascism per se.  Many current commentators also oppose that feminization virulently, and that leads them to take up with strange and rather unfortunate bedfellows, namely fascists, as fascists do in fact have modes of discourse for opposing or criticizing feminization.  Often fascism per se is not the main interest of today’s right-wing thinkers, and if you started lecturing them on Speer’s building plans for Berlin, or earlier German cartel policy, their eyes would glaze over.  They are more interested in the current cultural wars, but they don’t always have the intellectual equipment to fight them, and so they look to fascists, a badly mistaken choice.

I say feminization is here to stay, we need to find workable versions of that — how’s that for a challenging intellectual project?  Those of us looking backwards to “the nasty people” are going to find themselves staring down a dead end, intellectually and otherwise.  Hungary and Salazar are not the future, people.  You should be jumping on better bandwagons, or if need be building them yourselves.

A new chess variant

With Steven Brams, an American game theorist, Ismail devised a radical but easily implemented solution to the perceived white bias in chess. Their system, dubbed “balanced alternation”, allows black to make two moves after white’s opening move, with white then taking the next two moves before reverting to standard play.

By giving black a double riposte to white’s opening, Ismail argues that the imbalance would be sharply reduced and “render chess fairer than any other reform of which we are aware”.

…Other players questioned whether chess really needs to be fairer, given the number of draws at elite level. When AlphaZero played itself in last year’s experiment, 98 per cent of the games ended in draws. “More draws? What a bore!” said a leading chess writer.

Ismail acknowledged that the chess world “can be very conservative”. He added: “I do expect a backlash at a proposal like this, but I hope open-minded players will want to give it a try.”

Here is more from The Times of London (gated).  You will note that my pet proposal for reforming chess also introduces a kind of color equity, though it is not motivated by that goal.  To limit the import of opening preparation and to minimize the number of draws, we should randomize the initial opening moves, but within reason, with an average value clustered around 0.00, and with a focus on non-drawish lines.  So some games would start with 1.b4 d5, which is “playable” for White, though few players would move as such in a major tournament.  Most of the randomizations shoul be fairly sharp variations, and so the randomization would allow the Petroff and Berlin to surface only one out of every 768 games.

*American Republics*

That is the new Alan Taylor book and the subtitle is A Continental History of the United States, 1783-1850.  Excerpt:

With 124,000 inhabitants in 1813, Mexico City was twenty times bigger than Washington, D.C. — and about forty times grander.  Poinsett described the public buildings and churches as “vast and splendid,” providing “an air of grandeur…wanting in the cities of the United States.”  A German intellectual, Alexander von Humboldt, thought the city’s statues and Baroque palaces “would appear to advantage in the finest streets of Paris, Berlin and [St.] Petersburg.”

…Mexico City had an array of cultural institutions created during the colonial era.  “No city of the new continent, without even excepting those of the United States, can display such great and solid scientific establishments as the capital of Mexico,” marveled Humboldt.  The United States had nothing to match Mexico’s Academy of Fine Arts, National Botanic Garden, National University, and School of Mines.  Founded in 1551, the university was the oldest in the Americas.

The book is excellent, including on Mormons, and also the War of 1812, and it will be one of the best books of this year.  It is time to admit that Taylor is not only one of the best historians, but he is one of the best writers period in any field.  Recommended.

Monday assorted links

1. The uses of “deepfake” videos are not always what you think.  More here from the NYT.

2. Does spending money on your pets promote your happiness?  Their happiness?

3. A guide to NFTs.

4. The European Union just doesn’t love privacy as much as it claims to.

5. A soul’s view of the optimal population problem.

6. “In what we call the Big Push region, the impact of idiosyncratic distortions is over three times larger than in models without such complementarity. This amplification enables our model to nearly fully account for the income gap between India and the US without coordination failures playing a role.”  Link here.

MIT graduate micro exam, 1961

From the archives of Irwin Collier (I won’t do any extra indentation):

Economics Candidates: Answer any FOUR questions (thirty minutes each).
S.I.M. Candidates: Answer any TWO questions (thirty minutes each).

  1. Within the framework of static, partial-equilibrium theory, indicate under what circumstances advertising will reduce product prices in the long run, (a) if the advertiser is a simple monopolist, (b) if the advertisers are members of a large, perfectly symmetrical, Chamberlinian group of suppliers of differentiated products (the number of firms being large enough to rule out oligopolistic relationships, and variable in accordance with a long-run-equilibrium condition of zero profit for all firms).
  2. How is a firm’s demand schedule for a particular factor of production derived (a) when that factor is the only variable one, and (b) when the quantities of all factors are variable? Show which of these demands is, if anything, the more elastic.
  3. The demands for two products are: q1 = q2 = 54 – p1 -p2. How would you characterize their relationship? If they are produced by separate sellers at constant average costs of c1 = 12 and c2 = 6, respectively, calculate each man’s equilibrium price, quantity, and profit under each of the following conditions:
    1. Each seller assumes that the other’s price is a constant;
    2. The second seller behaves that way and the first seller realizes that he does;
    3. Both sellers maximize their joint profit and share it equally.
  4. Two countries can produce food (F) and clothing (C) with labor (L) as the only factor of production. Country A has 20 billion units of L, each of which can produce either 5 units of F or 2 units of C. Country B has 10 billion units of L, each of which can produce either 8 units of F or 6 units of C. Everyone always spends half of his income on F and the other half on C. In a purely competitive equilibrium with balanced trade between the two countries (and no transportation costs), what is the effect on the quantities of F and C produced and consumed in each country? Could either country benefit by imposing a tariff on the imported good?
  5. What are the various reasons why a free-private-enterprise economy may fail to allocate its resources in an optimally efficient way? Explain.
  6. Discuss the roles of “real” and “monetary” elements in a satisfactory theory of interest. Is it logically possible to fashion an interest theory exclusively in terms of one or the other of those elements? Explain.

TC again: I don’t think current graduate students (outside of MIT and a few other places) would do very well on #1, nor do I think they would understand what is being asked on #6, much less have a good answer.  On #5, I wonder how many would give a sufficiently analytical answer rather than just repeating a bunch of cliches from media and social media?

Thursday assorted links

1. Novovax: did you have moth cells and Gaithersburg on your 2020 bingo card?

2. And here is one version of the Danish mink news.  Its import remains unclear.

3. Mongolian heavy metal video with 60 million views, good visuals and lyrics too.

4. Carolyn Stein papers on the economics of science and the biosciences.  She is an economics job market candidate from MIT.

5. Married vs. unmarried women.  And how Stanford voted.

6. Why electoral fraud is difficult (NYT).

*Kindred: Neanderthal Life, Love, Death and Art*

By Rebecca Wragg Sykes, an excellent book, a very responsible treatment of what we do and do not know about Neanderthals, with a bit on Denisovans as well.  It is a book full of sentences such as: “Micro-morphology has also provided proof that, far from being slovenly, Neanderthals were regularly disposing of their rubbish.”  It seems they enjoyed mussels and also grubs, among many other foodstuffs.  The hearth was the center of the home and they had fairly advanced systems for butchery.  They used leather and deployed pigments.

I enjoyed this segment:

Parisians, Londoners or Berliners today with ostensibly European heritage have very little connection even to Mesolithic people just 10,000 years ago.  The vast majority of their DNA comes from a massive influx of Western Asian peoples during the Neolithic.  This means that many of the first H. sapiens populations are more extinct than the neanderthals; not a great sign of evolutionary dominance.

Recommended, you can order here.

Tyrone joins…that group…

Many of you ask me for reports of my evil twin brother Tyrone, but of course I demur because I am too embarrassed to pass along his doings.  They get worse and worse.  Nonetheless, Tyrone said he was going public with this one, so I thought the damage was done in any case.  The sad news is that Tyrone is now an active proponent of QAnon.  How can he fall for such fallacies and stupidities?  He sent me this letter to explain his decision:

Dear Tyler:

You have yourself blogged about the import of child abuse, and asked why it is not condemned more widely, most of all among elites.  You even wrote that the right wing ignored the issue — I thought it is time to remedy that!  We needed a right-wing movement to protect the world’s most vulnerable citizens, and it turned out that looked like QAnon.  Besides, who is more of an elite than I am?

To be sure, the QAnon movement has its excesses, but do not all social movements?  At least it attacks criminals rather than defending them.  The key question is whether social movements shine a light on abusive practices that need further scrutiny, and there QAnon passes with flying colors.

QAnon truly has attracted attention — just look at all the complaints about Facebook enabling it.  In this world you haven’t arrived until someone can turn a criticism of you into a criticism of Facebook.

Jeffrey Epstein was convicted of…stuff…and the world’s elites continued to treat him as normal and to take his money and fly on his plane.  He wasn’t cancelled.

Roman Polanski had a successful and feted career after repeatedly doing very bad…stuff.

The sexual abuse of children has turned out to be rampant in the Catholic Church and also in Hollywood.

I saw the new HBO documentary Showbiz Kids: “In my experience, I know a lot of kids that grew up in the industry. And what surprised me when I got older was finding out that pretty much all of the young men were abused in some way, sexually.”

French intellectuals — and was there ever more of an elite than them? — petitioned to repeal age of consent laws so they can do…bad stuff…with less fear of the consequences.  (See?  Petitions really are wrong!)

By the way, Berlin authorities placed children with pedophiles for thirty years.  And that is in Germany, a country with relatively responsible governance.

This is all so sickening I can’t go on any further, and we haven’t even discussed all that goes on over the internet.

There is in fact an epidemic of child abuse, it ruins or seriously damages many millions of lives, and elites are complicit in covering it up and refusing to address the preconditions that generate so much of it.  These same elites often downplay or discourage the elevation of social conservatism, one of the few possible regulatory mechanisms society might have.  In the very worst situations, these elites are directly complicit in covering up the abuse of children.  Many of the elites partake in it themselves.

Which group has done more to publicize these failings than QAnon, the worthy successor to The Jerry Springer Show?

Yes, Yes I know.  I do not endorse all of their hypotheses concerning political economy.  Maybe Donald Trump will not in fact set all things straight, and perhaps the apocalypse is not around the corner.  No, the molesters do not worship Satan, but given their behavior they might as well.  Should we lock up all those journalists?  I don’t know.  Comet Ping Pong was never as good as Pupatella anyway.  But look — this is what you get when you build a mass movement.  The message does get dumbed down and the crazies climb on board, just as we have Antifa and some other weird groups and demands connected to what are otherwise valuable social marches.  Tyler — you have to get used to this new world of internet communications!  Walter Cronkite is gone.  Either compete or give up, and I’m not willing to do the latter.

For whatever structural reason, elite media seem less obsessed with child abuse as an issue than is “non-elite media.”  That is simply a reality we need to work with, and our unwillingness to discard traditional canons of journalism has led to the perpetuation of these abuses for centuries, indeed dating back to the very founding of the American nation.

Haven’t you read Marcuse on repressive tolerance?

And come on, this very serious guy just wrote this, but not about QAnon:

“But actually diving into the sea of trash that is social science gives you a more tangible perspective, a more visceral revulsion, and perhaps even a sense of Lovecraftian awe at the sheer magnitude of it all: a vast landfill—a great agglomeration of garbage extending as far as the eye can see, effluvious waves crashing and throwing up a foul foam of p=0.049 papers. As you walk up to the diving platform, the deformed attendant hands you a pair of flippers. Noticing your reticence, he gives a subtle nod as if to say: “come on then, jump in”.”

The rot runs much deeper than the fallacies of QAnon.

Besides, it seems that the guy behind QAPPANON (don’t ask) is “a New Jersey man in his forties with prominent roles in technical analysis and IT security for the banking sector.”  Could there be a more reliable source?

And Tyler, I know your criticize me for following these conspiracy theories. But you yourself have written of the need to imagine a future very different from the present and then bring it about? Is that not what a conspiracy tries to do?  Do we not need to counter these evil conspiracies with some more benevolent plans?

Most of all, when it comes to evaluating social movements, you can only elevate so many victims at once.  Isn’t the notion of children as the true victims the most universal and indeed the only vision that can unify this great nation?  People complain about the truth-stretching in QAnon, and OK I get that, but isn’t their real worry the revolutionary re-appropriation of which groups in society can be granted true, #1 victimhood status?  Just as Christianity accomplished a similar revaluation way back when?  (And look at some of the wacky stuff that they believe — ever read The Book of Revelation Tyler?)

I don’t want QAnon to be in charge, but what other tool do we have to force elites to deal with this issue?  Aren’t these just Saul Alinsky tactics?  QAnon isn’t going to control Congress anyway.

Besides, is not apophenia one of the roots of creativity?  Have not Millenarian movements played key and sometimes beneficial roles in Western history?  Is not Christianity itself a Millenarian movement?  How about all that weird ass shit on the back of your dollar bill?

Child abuse is the #1 issue in society right now so…pick your side!  If you don’t like it, stop your silly blogging and come up with a better anti-child abuse movement.

TC again:  See?  This is why Tyrone doesn’t appear much on this blog any more.  It used to be a funny or sometimes even thought-provoking schtick, but these days things are so out of control you’ve got to stick with message discipline.  You can’t just let one speculation lead to the next, because we have so many crazies with major league internet platforms.

Rationalism.  Fact-checking.  Only one family member at a time (sorry sis!).

Please return tomorrow, or perhaps later in the day, for a proper analysis of the incidence of property tax reform in eastern Colorado.  And perhaps there will be some new service sector jobs as well — you can apply!  In the meantime, let’s hope that Tyrone’s QAnon fandom isn’t one of them.

And no, I’m not going to try to reenter the Philippines.

Does Demand for New Currencies Increase in a Recession?

Every time there is a recession we hear more about barter and new currencies, especially so-called “local” currencies. An inceased interest in barter and new currencies suggests a theory of recessions, the lack of liquidity theory:

Bloomberg: “In times of crisis like the one we are jumping into, the main issue is lack of liquidity, even when there is work to be done, people to do it, and demand for it,” says Paolo Dini, an associate professorial research fellow at the London School of Economics and one of the world’s foremost experts on complementary currencies. “It’s often a cash flow problem. Therefore, any device or instrument that saves liquidity helps.”

I wrote about this several years ago but on closer inspection it’s not obvious that interest in barter or new currencies increases much in a recession or that these new currencies are helpful. Here’s my previous post (with a new graph) and no indent.

Nick Rowe explains that the essence of New Keynesian/Monetarist theories of recessions is the excess demand for money (Paul Krugman’s classic babysitting coop story has the same lesson). Here’s Rowe:

The unemployed hairdresser wants her nails done. The unemployed manicurist wants a massage. The unemployed masseuse wants a haircut. If a 3-way barter deal were easy to arrange, they would do it, and would not be unemployed. There is a mutually advantageous exchange that is not happening. Keynesian unemployment assumes a short-run equilibrium with haircuts, massages, and manicures lying on the sidewalk going to waste. Why don’t they pick them up? It’s not that the unemployed don’t know where to buy what they want to buy.

If barter were easy, this couldn’t happen. All three would agree to the mutually-improving 3-way barter deal. Even sticky prices couldn’t stop this happening. If all three women have set their prices 10% too high, their relative prices are still exactly right for the barter deal. Each sells her overpriced services in exchange for the other’s overpriced services….

The unemployed hairdresser is more than willing to give up her labour in exchange for a manicure, at the set prices, but is not willing to give up her money in exchange for a manicure. Same for the other two unemployed women. That’s why they are unemployed. They won’t spend their money.

Keynesian unemployment makes sense in a monetary exchange economy…it makes no sense whatsoever in a barter economy, or where money is inessential.

Rowe’s explanation put me in mind of a test. Barter is a solution to Keynesian unemployment but not to “RBC unemployment” which, since it is based on real factors, would also occur in a barter economy. So does barter increase during recessions?

There was a huge increase in barter and exchange associations during the Great Depression with hundreds of spontaneously formed groups across the country such as California’s Unemployed Exchange Association (U.X.A.). These barter groups covered perhaps as many as a million workers at their peak.

In addition, I include with barter the growth of alternative currencies or local currencies such as Ithaca Hours or LETS systems. The monetization of non-traditional assets can alleviate demand shocks which is one reason why it’s good to have flexibility in the definition of and free entry into the field of money (a theme taken up by Cowen and Kroszner in Explorations in New Monetary Economics and also in the free banking literature.)

During the Great Depression there was a marked increase in alternative currencies or scrip, now called depression scrip. In fact, Irving Fisher wrote a now forgotten book called Stamp Scrip. Consider this passage and note how similar it is to Nick’s explanation:

If proof were needed that overproduction is not the cause of the depression, barter is the proof – or some of the proof. It shows goods not over-produced but dead-locked for want of a circulating transfer-belt called “money.”

Many a dealer sits down in puzzled exasperation, as he sees about him a market wanting his goods, and well stocked with other goods which he wants and with able-bodied and willing workers, but without work and therefore without buying power. Says A, “I could use some of B’s goods; but I have no cash to pay for them until someone with cash walks in here!” Says B, “I could buy some of C’s goods, but I’ve no cash to do it with till someone with cash walks in here.” Says the job hunter, “I’d gladly take my wages in trade if I could work them out with A and B and C who among them sell the entire range of what my family must eat and wear and burn for fuel – but neither A nor B nor C has need of me – much less could the three of them divide me up.” Then D comes on the scene, and says, “I could use that man! – if he’d really take his pay in trade; but he says he can’t play a trombone and that’s all I’ve got for him.”

“Very well,” cries Chic or Marie, “A’s boy is looking for a trombone and that solves the whole problem, and solves it without the use of a dollar.

In the real life of the twentieth century, the handicaps to barter on a large scale are practically insurmountable….

Therefore Chic or somebody organizes an Exchange Association… in the real life of this depression, and culminating apparently in 1933, precisely what I have just described has been taking place.

What about today (2011)? Unfortunately, the IRS doesn’t keep statistics on barter (although barterers are supposed to report the value of barter exchanges).  Google Trends shows an increase in searches for barter in 2008-2009 but the increase is small. Some reports say that barter is up but these are isolated (see also the 2020 Bloomberg piece), I don’t see the systematic increase we saw during the Great Depression. I find this somewhat surprising as the internet and barter algorithms have made barter easier.

In terms of alternative currencies, the best data that I can find shows that the growth of alternative currencies in the United States is small, sporadic and not obviously increasing with the recession. (Alternative currencies are better known in Germany and Argentina perhaps because of the lingering influence of Heinrich Rittershausen and Silvio Gesell).

Below is a similar graph for 2017-2020. Again not much increase in recent times.

In sum, the increase in barter and scrip during the Great Depression is supportive of the excess demand for cash explanation of that recession, even if these movements didn’t grow large enough, fast enough to solve the Great Depression. Today there seems to be less interest in barter and alternative currencies than expected, or at least than I expected, given an AD shock and the size of this recession. I don’t draw strong conclusions from this but look forward to further research on unemployment, recessions and barter.

Tesla’s Gigafactory

Elon Musk has said that he thinks not of building cars but of building factories that make cars, the machine that makes the machine. You can see what he is on about in this new video of the first Gigafactory.

Three points of note. The factory was up and running in 10 months. There are lots of robots, in a factory in China–that tells you a lot about Chinese wages and the productivity of robots today. Tesla is building Gigafactory Berlin and Gigafactory Texas next.