The Awesome Science of Chinonomics

If you ask me to name the one thing that makes the United States the most powerful and influential country in human history...  I don't answer its military. Even though the U.S. defense budget is staggering. I don't answer its rule of law. Even though the U.S. ranks very high in the world .  I don't answer its living standards. Even though the U.S. ranks in the top 5  in economic freedom. I don't answer its cultural inclination to dominate and conquer faraway lands , nor the facility (and most importantly, the willingness ) of its citizens to move within its borders in search for a better future. Laudable as that may be.   Even if the % of movers has decreased since the 90's, close to 17MM people moved within the US in 2017 alone.  That's almost  the equivalent of the Netherlands, or Ecuador, or Senegal moving houses in 12 months  🤯 .  I would not even answer its marvelous capacity  to take in immigrants from all other the world for mor...

It's practically impossible to avoid the news of ecological crises (plural) these days. I'm not talking about Russia strangling Europe this winter by cutting gas flows. That will be a politically-made crisis. I'm talking about the epochal droughts afflicting the entire planet. You know it's bad when river flows in Europe are so low that the Rhine can't sustain commercial traffic; when the Tiber water levels in Rome are so low that the foundations of Roman bridges from the times of Nero are exposed.  Resurfaced remains of a bridge in Rome’s River Tiber, in July. Photographer: Alessia Pierdomenico/Bloomberg But you know it's next level bad when the literal "hunger stone" appears in the Czech Republic --an inscription from 1619 at the bottom of the Elbe river that says " If you see me, then weep " Hunger stone on the Elbe in Decin, Czech Republic (AFP/Getty) I wish it was only Europe. The Western US is going through the worst drought in 1200 yea...

Knowledge accumulates throughout generations. It travels through time as long as there is always someone at the other end of the arrow of time to absorb it, assimilate it and apply it. Language helped it transcend --first in oral traditions , then in written form. Sure, there were some instances of miscommunication between some generations and knowledge stalled at times, but generally speaking, knowledge compounds itself. It exhibits the same exponential behavior as wealth. For early forager humans, the knowledge to conquer our environment (learning about medicine plants, edible roots, game migrating patters) was as valuable then as it is today to learn what's the next meme stock being hyped on reddit.  At the beginning the band forager culture fomented cooperation. To share what early foragers gathered/hunted was the rational thing to do. After all, the volatility of your returns (one day you'd have a good kill, but then days would go by without a catch) pushed you to share ...

Out of all the forms of societal organization (the tribe, bands, the  Kingdom, The City-State, The Empire, etc), the Nation-State seems to have been the most stable and successful way of human association. The competition was somewhat settled after WWI with the collapse of the last of the great empires, like the Ottoman, and Austro-Hungarian one. But " most stable and successful " does not mean absolutely stable nor absolutely successful. Everything that's built by a human is bound to be flawed. From the concept of the family, to the effectiveness of vaccines, to the engineering of the Boeing 737 MAX . One of the most important functions of leadership in Nation-State is to keep stability. Without it, no society can sustain itself. Social stability depends on trust and legitimacy of its institutions. Economic activity rests on the bedrock of rule of law and contract enforcement. No one would venture to embark on a business if marauders will destroy your property on a whim...

Paradigms are a funny thing. They are collective conventions people believe in --even rely upon for functioning. They're ideas everyone has agreed as truth, which few (or not a substantial number of people) question, until a revolutionary thinker, or a massively influential event (or a combination of both) occurs, and they are busted. The earth was flat and no one questioned it until a "brave revolutionary" called Copernicus dared to think outside convention and declared earth revolved around the sun. And boom: Ptolemaic cosmology was gone. Money and government, both social constructions that rely on people according them legitimacy , also rely on paradigms to function. A major one is that money is finite -- we  can  run out of it . Another one is that we can get it only if we do (work on) something of value for somebody else . Also, that we can't make our own money --unless we want to land in jail. Or be tragically killed . Therefore, the reputation of a currency, at...