The Roman Philosopher Lucius Anneaus Seneca (4 BCE-65 CE) was perhaps the first to note the universal trend that growth is slow but ruin is rapid. I call this tendency the "Seneca Effect."
Showing posts with label Europe. Show all posts
Showing posts with label Europe. Show all posts

Sunday, December 18, 2022

The European Non-Union after the Qatargate: Was it Designed to Fail?

 

The European Parliament building in Strasbourg, France. I don't know if they consciously designed it to look like the Babel Tower, but it may follow the same destiny: collapse. It is a typical "non-place" inhabited by tribes of people who don't care about each other, don't talk to each other, and don't even understand each other. In these conditions, it is not surprising that crime and corruption prosper, as we learned in the case of the "Qatargate." Was the Union designed from the beginning so that it would fail? 


You probably know the concept of "non-places." The hall of a hotel is a good example. It looks like the living room of a home, but it is not the same thing. It is a place where people stay for brief periods of time, but do not interact with each other. They don't know each other, they don't even understand each other's language. The Babel Tower was a good example of a non-place, but nowadays non-places are common. In addition to hotels, you have airports, train stations, shopping malls, waiting rooms, and many more examples. 


Non-places are the ideal kind of places to engage in illegal or hidden operations. For instance, hotels are the typical place where you can meet your secret sexual partner, discuss illegal deals, or give or receive a bribe in cash. That doesn't mean, of course, that all the customers of a hotel are criminals. It just means that non-places provide the anonymity you need for certain kinds of transactions. Anonymity makes you also vulnerable to attacks that can take the form of "character assassination," as it happened to Dominique Strauss-Kahn in 2011.   

The European Parliament provides a special kind of anonymity owing to its multinational organization. Each national delegation is jealous of its national language and its members would feel offended if they were asked to speak in English (*), and many of them would be unable to do that, anyway. That's why the Union has 24 official languages and, consequently, the "Alcide De Gasperi" room in the palace of the European Parliament in Brussels has 24 translation boots, each one with at least two official interpreters. (theoretically, each boot should have 23 translators, but they would not fit inside, and I suppose that the translations are made first into English and then translated into the other languages). 

Given this organization, you understand the fragmentation of the European Parliament. A few years ago, I was there, and I noted how it looks mostly like the hall of a large hotel, a typical non-place. Throngs of people moving up and down, but very little interaction among those who don't speak the same language. Even outside the parliament building, I found that the Italian delegation had a coffee shop that served Italian coffee, where everyone spoke Italian, and where you would feel like being in Italy. I had the impression, and some Spanish friends confirmed it, that the whole central area of Brussels is a non-place: each national delegation had its coffee shops, restaurants, etcetera. Maybe the whole European Union is a non-place. A Non-Union.

It is not difficult to understand how easy it must be for lobbyists to engage in shady deals with national representatives in the European Parliament. Imagine an Italian company that wants to obtain a favorable contract from the EU. It will lobby an Italian MP who will probably feel that it is his/her duty to support an Italian company. If that involves a little personal gain, well, it may be deserved. In other words, in the best mafia style, each delegation jealously controls its own turf. Then, no surprise that the European Parliament has become a business network, losing all interest in promoting the interests of Europe as a whole -- for instance in terms of defense. It shows: Europe is the only example of a large state organization that doesn't have an independent military force.  

So, it is not surprising that lobbying (that some call simply "corruption") is rampant in Brussels. That doesn't mean we should take the current "Qatargate" scandal as an excuse to criminalize any or all the European MPs. I can tell you that I personally know some of them who refused to be corrupted and always acted for the good of the community. And we should not exclude the possibility that the Qatargate is a case of psyop-based character assassination (**).  Nor we should think that national parliaments are much better -- even there, representatives have their turf to defend. Yet, it is clear that there is a corruption problem in Brussels. A serious one, at all levels. 

Of course, there are ways to fight corruption by tighter controls, more severe regulations, and the like. But the problem is that no organization can function if it uses 24 different languages and gives equal status to all of them. Even worse, no organization can exist for long if its members have the only purpose of getting a larger slice of the pie for themselves. That's the business of diplomacy, but politics is a different story. 

You surely heard that the art of diplomacy consists in convincing everyone that they got the largest share of the pie. Instead, the art of politics consists of an equitable distribution of the pie. Without such a purpose, without an understanding that the organization exists to promote the common good, we don't have politics, we only have the law of the jungle. And everyone acts according to the fundamental principle of plundering mobs that states, "grab what you can, when you can." The European Union never was one. 

From "The Secret of Nimh" (1982)

So, the question is, was the European Union designed from the beginning with the idea that it should fail? The founders were surely people with lofty ideals of peace and collaboration, but as the organization grow, it soon became a modern version of the Babel tower. Maybe it was unavoidable, or maybe some external forces pushed it to become what it has become. It doesn't matter. Like the Babel tower, at this point, the EU has no other destiny in sight than to crumble. Perhaps we'll be able to build something better on the ruins, but it will not be soon. 



The collapse of the Tower of Babel" by Cornelisz Anthonisz, Etching, 1547

(*) One Union, One Language

The multilingual structure of the European Union raises the question of whether it would have been possible to design it differently. We may wonder what could have happened if the founding fathers Adenauer, Monnet, De Gasperi, and others, had stamped their feet on the ground and insisted on the principle of "one union, one language.

One possibility could have been English -- why not? It is the most diffuse international language in the world, and it is the common language used in India, even though the Indians have reasons to be unhappy about having been invaded and dominated for a long time by the British. Of course, different countries speak (and mangle) Ingliss in various ways, but the important thing is that these versions are mutually understandable. More or less. 


It would also have been perhaps the last chance to select and diffuse one of the "synthetic" languages, like Esperanto, that could be defined as modern Creoles. It would have had the advantage that Esperanto is a language close to several modern European languages. Esperanto never reached a wide diffusion but, who knows? Estus ankaŭ eble la lasta ŝanco elekti kaj disvastigi unu el la" sintezaj " lingvoj, kiel Esperanto,

Another possibility was to resurrect an extinct language and make it the official European Language. Latin could have been a good choice since it is still used in some scientific fields, and it had been "the" language of European intellectuals up to the 19th century. Greek could have been another interesting choice, without the "Fascist" ring that Latin had gained with the Italian Fascist regime. It was the solution chosen by the founders of the modern state of Israel when they decided they would resurrect ancient Hebrew and make it their national language (before, Jews would speak at least six mutually not understandable languages). Alia possibilitas fuit linguam exstinctam resuscitare et facere officialem Linguae Europaeae. Latine bene electio fieri potuit quia adhuc in quibusdam campis scientificis usus est et "lingua" intellectualium Europaearum usque ad XIX saeculum fuerat. 

Unfortunately, what was not done then, can't be done now. It was a lost chance, possibly lost forever. Maybe "Googlish" will come to the rescue or, maybe, we'll all speak in a new hieroglyph-based language that uses emoticons (Yandex offers translation of any text into "Emoji"). Or, maybe, we'll follow the majority rule and decide to speak Mandarin Chinese. Who knows? 🔣 🤔 👫 👫 👤 🚫 🤔 🔠 🎏

(**) The "Qatargate" scandal may have a political meaning that escapes those who are not insiders to the complicated power balance of the European Commission. Was it a character assassination? It may be related, as usual, to the energy supply to Europe as argued in a recent article by Michele Marsiglia, president of the Italian Federpetroli.


Monday, December 12, 2022

The End of Europe: The Conclusion of a Long Historical Cycle.



The failure of the European Union may have started with the choice of the flag. Not that national flags are supposed to be works of art, but at least they can be inspiring. But this flag is flat, unoriginal, and depressing. It looks like a blue cheese pizza gone bad. And that's just one of the many things gone bad with the European Union. (attempts to make it more appealing failed utterly). It is the conclusion of a thousand-year cycle that's coming to an end. It was probably unavoidable, but that doesn't make it less painful. 


Europe has a long history that goes back to when the ice sheets retreated at the end of the last ice age, some 10,000 years ago. At that time, our remote ancestors moved into a pristine land, cultivated it, built villages, roads, and cities. They traveled, migrated, fought each other, created cultures, built temples, fortresses, and palaces. On the Southern coast of Europe, a lively network of commercial exchanges emerged, made possible by maritime transportation over the Mediterranean Sea. Out of this network, the Greek civilization was born, and then the Roman Empire appeared around the end of the first millennium BCE. It included most of Western Europe. (image from ESA)


As all empires do, the Roman Empire went through its cycle of glory and decline. In the 5th century AD, as Europe entered the Middle Ages, the Empire had disappeared except as a memory of past greatness. In the following centuries, the population of Western Europe declined to a historical minimum, maybe less than 20 million people. Europe became a land of thick forests, portentous ruins, small villages, and petty warlords fighting each other. No one could have imagined that, centuries later, Europeans would become the dominators of the world.

Sometimes, collapses bring with them the seed of recovery. It is what I called the "Seneca Rebound." For some reason, we moderns disparage the Middle Ages, calling the era the "Dark Ages." But there was nothing dark during the European Middle Ages. Europe was poor in material terms, but Europeans managed to create a culture of refined literature, splendid cathedrals, sophisticated music, advanced technologies, and much more. One reason for the prospering of the European culture was the presence of tools that other regions of the world lacked. One was the Latin language, used to keep alive the ancient Classical Culture and its achievements. It also helped trade and created strong cultural bonds all over the continent. Europeans also inherited the bulk of Roman law and culture, and Roman technologies in fields such as metallurgy and weapon making.  

With Europe recovering from the 5th-century collapse, new precious metal mines in Eastern Europe started pumping wealth into the continent. The result was explosive. Already in 800 AD, Charlemagne, King of the Franks, could assemble an army powerful enough to create a new Europe-wide Empire, the "Sacred Roman Empire." With the turn of the millennium, the European population was rapidly growing, and it needed space to expand. Europe was a coiled spring, ready to snap. In 1095, a burst of armies emerged out of Europe, crashing into the Near East. It was the time of the Crusades. 

Initially, the invasion of the Middle East was a spectacular success: the Christian armies defeated the local rulers, established new kingdoms, and recreated a direct commercial connection with East Asia, along the Silk Road. But the task was too huge for a still young Europe. After two centuries of struggle, the European armies were forced to abandon the Holy Land, defeated and in disarray. At this point, Europe faced again the problem it had tried to solve with the Crusades: overpopulation. The problem solved itself by means of a quick population collapse, first with the great famine (1315–1317), then the black plague. The Europe of the 13th century was so weakened that it seriously risked being overcome by the Mongol armies coming from Asia. Fortunately for the Europeans, the Mongols couldn't sustain a full-scale attack so far from the center of their Empire.    


A schematic view of the European population during about one millennium. Note the two collapses: both have the typical "Seneca-Shape," that is, decline is faster than growth. The first collapse was caused by famine and by the black plague, the second by the 30-year war, and the associated plagues and famines. 

Despite the ravages of the Black Plague, Europe re-emerged with its culture, social structure, and technological knowledge still intact. Europe didn't just recover, but it rebounded in a spectacular way. Shipbuilding technologies were improved, allowing Europeans to sail across the oceans. During their internecine quarrels, the Europeans had also turned firearms into terribly effective weapons. During the 16th and 17th centuries, they rebuffed the attempts of the Ottoman Empire to expand into Europe. The Ottomans were dealt a crushing blow on the sea at Lepanto, in 1571. Then, they were decisively defeated on land at the siege of Vienna, in 1683. With their Eastern Borders now safe, Europeans had a free hand to expand overseas. 

The 16th century saw the birth of a pattern that would persist for several centuries. European armies would invade foreign kingdoms, crush all military resistance, and replace the native leaders with European ones. Sometimes they used the local inhabitants as slaves, sometimes they wiped them out and replaced them with European colonists. The new lands were an incredible source of wealth. Europe imported precious metals, timber, spice, and even food in the form of sugar produced from sugarcane. The inflow of gold and silver from overseas stimulated the European economy, and timber allowed Europeans to build more ships. And the imports of food allowed the European population to grow and to field new armies that could conquer new lands that produced even more food.  

Nevertheless, Europe's expansion started to slow down in the 17th century. The 30 years' war, 1618 to 1648, was a terrible disaster that may have exterminated 10% of the European population. Then, as usual with wars, another outburst of plague followed. Europe seemed to have reached a new limit to its expansion. Sugar coming from overseas colonies was not enough, by itself, to sustain the need for materials to keep and further expand the European empire. Wood was needed to produce ships and, at the same time, to be turned into the charcoal needed to smelt metals. But trees were depleted in Europe and importing timber from overseas was expensive. Most of the Southern European countries saw their forests decline and their growth stall.

(image from Foquet and Bradberry). (France is not shown in the figure, but it shows a pattern similar to that of England). 

Despite the troubles, the Northern European economies, (especially England) rapidly restarted to grow after the 17th-century crisis. The trick was a new technological development: coal. Coal had already been used as a fuel in Roman times, but nobody in history had used it on such a large scale. With coal, Europeans didn't need anymore to destroy their forests to make iron. That was the start of a new, successful rebound. By the early 20th century, Europe dominated the whole world, directly or indirectly.  

Europe's population according to Zinkina et al. (2017). The two drops of the 14th and the 17th century are clearly visible, although less dramatic on this scale than in the earlier work of Langer

As typical of empires, with the conquests completed, there came a time of consolidation. No more risky adventures of individual states, but a central government to manage the empire and keep it together. For the ancient Romans, it had been the task of Julius Caesar to create a strong, centralized state. For modern Europe, it was a much more difficult story: how to tame a group of quarrelsome states that seemed to spend most of their time fighting each other? 

The Holy Roman Emperor, Charles 5th (1500-1558), was among the first to try, without success. His successor, Philip 2nd of Spain (1527- 1598), tried to subdue Britain with his "invincible armada" in 1588, but he failed, too. The decline of Spain left space for other European powers to try again. Napoleon Bonaparte (1769 -1821) almost succeeded, but his imperial dreams sank at Trafalgar and then froze to death in the Russian plains. Then, it was the turn of Germany. The attempt started in 1914, and again in 1939. In both cases, it was a tragic failure. Even the weak Italy had imperial dreams. In the 1940s, Benito Mussolini attempted to recreate a new version of the ancient Roman Empire in the Mediterranean Sea. Utter failure, again. 

Over and over, the would-be European Imperial powers found themselves facing an impossible challenge. In the West, Britain had no interest in seeing a European Empire arising just on the other side of the Channel. The same was true for the East, with Russia not keen to see a major power near its borders. The result was that the European armies often found themselves fighting on two sides at the same time. Then, the Mediterranean Sea was in the iron grip of the British Navy -- no way for continental powers to expand South. With the end of WW2, Europe emerged out of the struggle destroyed, impoverished, and humiliated. 

The latest (and perhaps the last) attempt to unify Europe was the European Union. The creators of the Union understood that it was impossible to unify Europe by military means, so they tried to do it in the form of an economic free zone and an elected parliament. It was a bold attempt, but it didn't work. It could not have worked. The Union faced enormous hostile forces, both internal and external. Britain and France were supposed to be balancing the German power, but when Britain left, in 2020, the Union suffered an economic defeat equivalent to the military one suffered by Germany in the Battle of Britain, in 1940. In both cases, they had tried to absorb Britain into the economic system of continental Europe, and they had failed.

The defection of Britain left the European Union with Germany dominating it. Just like during WW2, the German government never understood that throwing its weight around was not the way to endear itself with the neighboring states. The result was the growth of anti-European forces all over the continent. It was the movement called "sovereignty" that aimed to restore the power of nation-states and get rid of the EU bureaucrats. So far, this movement has played only a marginal role in politics, but it has succeeded in making the EU deeply hated by everyone who is not getting their salaries from Brussels. 

Just as it had happened in 1941, Europe is now engaged in a desperate battle on two different fronts, but the struggle is now mainly economic and cultural, not military: it is a "full spectrum dominance" war. The struggle is still ongoing, but it seems already clear that Europe is being defeated. Just like Germany had destroyed itself with a military attack on Russia in 1941, the European Union is destroying itself with its economic sanctions against Russia. Effectively, Europe is committing a slow and painful suicide. But that's how full spectrum dominance works: it destroys enemies from the inside. 

And now? It was unavoidable that Europe would cease to be an Empire. The human and material resources that had made European dominance possible are not there any longer. But it was not unavoidable that Europe would destroy itself. Europe could have survived and maintained its independence by remaining on good terms with the other Eurasiatic powers, China, Russia, and India, But, choosing to break the commercial, cultural, and human relations with the rest of Eurasia was not just an economic suicide. It was a cultural and moral suicide. 

So, what's going to happen to poor Europe? History, as usual, rhymes: do not forget that in 1945 the official US plan was to destroy the German economy and exterminate most of the German population. Fortunately, the plan was shelved, but could that idea become fashionable again? We cannot exclude this possibility. In any case, an impoverished Europe could go back to something not unlike what it was during the early Middle Ages: depopulated, poor, primitive, a mere appendage of the great Eurasian Continent. 

And, yet, Europe has rebounded more than once from terrible disasters. It may happen again. Not soon, though.


As inspiring as a blue cheese pizza gone bad


Saturday, October 1, 2022

Europe: How to Become Poor Peasants Again

 


"Les Glaneuses"  (the gleaners). A painting by Francois Millet (1857). Is this the destiny of the people of Western Europe?


All wars are wars for resources and, in modern times, they have been mostly for the resources that make the very existence of our civilization possible: fossil fuels. We all know how during WWII the attempt of the Germans to subdue the Soviet Union failed when they could not take control of the oil resources of the Caucasus. More recently, after President Carter declared that the oil resources of the Middle East are a "vital interest" for the United States (the "Carter Doctrine"), no one was surprised by the numerous wars and bombing campaigns waged by the US in the region. 

Sometimes, though, the role of fossil fuels in wars is more subtle than just someone trying to steal someone else's resources. Wars may not be a question of scarcity but of abundance. That may be the case of the war in Ukraine that we can interpret as a direct result of the impact of "fracking" in the United States. During the past 10 years or so, the development of fracking led to a reversal of the static or declining production trend of fossil fuels that had been ongoing in the US for about 40 years. 


The result was that American producers could reappear in the global market as exporters of both oil and gas. A potentially lucrative area where to expand was Western Europe. The problem was that the European market was in the hands of Russian producers, who had established a network of pipelines that could export natural gas at low prices to Europe. "Liquefied natural gas" (LNG) from the US just could not be competitive with pipeline gas because of the costs of liquefaction, transport, and regasification. 

In the manuals of economics it is said that, in a free market, the cheaper product always wins against the more expensive one. In the real world, though, markets are far from being free. As any mafia boss can tell you, the cocaine market is not just a question of prices: you have to defend your turf. And not just that: sometimes, you can expand the area you control by friendly (or not-so-friendly) interactions with neighboring competitors. That's sometimes called "arm-twisting," but it may involve much more drastic and painful methods than just dislocating a shoulder. Similar considerations hold for fossil fuels, a market in which states normally behave exactly like mafia families. 

During the past few months, we saw a case of a not-so-friendly interaction aimed at expelling Russia from the natural gas market in Europe. The war in Ukraine is mostly a sideshow: the real thing is the market of natural gas, and the critical point was the sabotage of the Nord Stream pipeline. Whoever did it, sent a clear message to everybody, not unlike placing the severed head of a horse in someone's bed: the European gas market is now the turf of another mafia family. 

That does not mean that Russian exports of gas to Europe will immediately cease. Completely replacing the Russian gas would require increasing the exports from the US to Europe by about a factor of 10. Maybe not impossible, and other gas-supplying countries may step in to help. But it is not something that can be done in a short time. You can see the situation in the graphs, below. The EU states import some 150 billion m3 of gas from Russia and only about 15 from the US. The US has a total export of more than 100 billion m3, but most of it goes to Canada and Mexico via pipelines. 




(images courtesy of Giuseppina Ranalli)

Hopefully, Russia will not stop sending gas to Europe using the existing pipelines. Then, a strong push toward renewable energy may help Europeans a lot. But the market is likely to behave exactly the way they say it should in the textbooks: a situation of scarcity leads to higher prices. In other words, with Europe desperate to get enough gas, producers are going to have a great time. Don't expect them to be kind to the poor Europeans: why should they be? Mafias are not supposed to be charitable institutions. 

So, in the coming years, we are looking at a situation of both scarcity and high prices of gas in Europe. That will have consequences. Many European citizens, especially the poor, will have to stay in the dark and in the cold this winter, and for several winters in the future. And there will be no European leader who will declare that the European lifestyle is "not up for negotiations," as President Bush 1st said about the American lifestyle. Can you imagine Ms. von der Leyen, the never-elected president of the never-elected European Commission, saying something like that? So, the lifestyle of European citizens is going to go down the drain, and perhaps it was unavoidable that it would, one day or another. But the real question is: will the European industrial system survive the high prices of energy? 

That's not obvious at all, and the Americans may soon discover that they killed the hen whose eggs they wanted. With energy prices five to ten times higher than before, European products may not be competitive any longer in the global market. That implies the collapse of the European industrial system and the return of the continent to the agricultural economy of a couple of centuries ago. It would be a return of the old "Morgenthau Plan" that aimed at doing exactly that to Germany after that WWII was over: destroying Germany's industrial economy and starving to death a large fraction of the German population. If something similar were to happen in Europe nowadays, that would also imply a certain reduction in the European population but, hey, I already noted how mafias are not supposed to be charitable organizations! And, as Ms. Victoria Nuland clearly explained to us not long ago, who cares about Europeans? They were peasants, once, so let those who survive return to tilling fields. 



Below, an article that I recently published in the Italian newspaper "Il Fatto Quotidiano" 


From the "Fatto Quotidiano" of 29 September 2022 (slightly modified)

by Ugo Bardi

The convulsive events on the global geopolitical scene continue to take us by surprise. What is behind the destruction of the Nord Stream pipeline? We can't say who did it, but one thing is certain: the conflict we are seeing is a war for resources much more than it is a warring war. To understand what is happening, we need to go back in time to find the roots of the current situation. 

In the book "Sea and Sardinia" (1921), DH Lawrence tells us how a favorite subject in the conversations among Italians was insulting the English. It was because English coal had become expensive, something that the Italians attributed to the wickedness of the English. The term "Perfidious Albion" had been invented a long time before but was beginning to become fashionable at that time. 

The history of English coal in Italy illustrates the factors still at play in the functioning of the Italian economy today. Italian industry needs energy, but there are not enough fossil energy resources in Italy to support a functioning industrial system. Thus, the industrial revolution arrived in Italy in the 19th century brought by English coal, imported by sea. But, with the end of the First World War, British coal had suddenly become much more expensive than before. It wasn't because the British were perfidious (maybe a little, but no worse than many others), it was because of depletion. As the British economist William Jevons predicted decades earlier, the costs of coal mining were rising and investments falling. As a consequence, the British coal production reached its peak in 1914, and then it began an irreversible decline. In the 1930s, coal shortages forced Italy into a deadly embrace with Germany - which could still produce it at low prices. We all know the results. 

Having emerged half-destroyed from the Second World War, the Italian industry was able to rebuild itself thanks to the US oil provided by the Marshall Plan. Even for oil, however, depletion had to be felt sooner or later. In 1970, the United States reached its production peak. The first major "oil crisis" followed, but the global market could offset the decline with other sources. Meanwhile, natural gas was rapidly becoming a low-cost alternative to oil. Gradually, Europe turned to import gas from Russia via pipelines. With this relatively low-cost gas, the Italian industrial system could survive.

In the last 10 years, however, things have changed dramatically. With the technology of "fracking", the United States has managed to reverse the decline in its production of both gas and oil. As a result, they have re-entered the world market as exporters. This explains many things: the oil and gas market is strategic in the great game of world domination and, in this game, there are no rules. Pushing Russia out of the Western European market makes it possible for the American industry to take back a market they had long lost. That's what's happening. The sabotage of the Nord Stream pipeline is a signal that Europe will have to live without Russian gas, one day or another. 

And now? In this global strategy game, everything is always changing. It is true that imports from the United States are now able to replace Russian gas in Europe, at least in part. But it is also true that importing natural gas from the US is only possible in the form of liquid natural gas and this involves high costs, as well as a heavy contribution to global warming due to the inevitable losses in the process. To this, we should add a fundamental unknown: how long will the United States be able to maintain its production at the levels needed to supply Europe? 

Fracking has been seen as a miracle technology, but it isn't. As always, forecasts are difficult, but we can be sure of one thing: no mineral resource is infinite and sooner or later we will face the peak of fracking gas. And it all starts all over again with the frantic search for energy to keep the industrial society alive. 

In Italy, we are in a position of extreme weakness. We lack the infrastructure (regasifiers) necessary to import liquefied gas. We can build them, but it will take time and, meanwhile, the Italian industry could suffer irreparable damage. It is not certain that when we have regasifiers there will be sufficient gas available to import. Not only that, but the Italian industry could find itself not competitive in the world market if it has to bear the high costs of liquid natural gas. In both cases, we could be facing the end of the industrial cycle of the Italian economy, about two centuries after its beginning. The problem is that, before the industrial revolution, there were fewer than 20 million inhabitants in Italy and famines were not uncommon. 

It seems clear that for us there are no other ways out than a decisive shift toward renewables, already today much cheaper than fossil fuels and capable of completely replacing them. Politicians have not yet understood this, but moving to renewables would protect us from new crises of energy availability and from blackmail by producers. But it's not something that can be done overnight. Only a diplomatic solution to the conflict in Ukraine would give us the time needed to build a new infrastructure based on renewables. Can we make it? Nothing prevents us from trying. 


Sunday, August 14, 2022

Europe: the Empire that wasn't

 


Napoleon Bonaparte in full imperial regalia. He got close to creating a European Empire, but he failed in the end. He faced the same strategic problem that other would-be European Emperors faced: having to fight on two opposite fronts at the same time, against Russia and against Britain. At present, the European Union (another form of European Empire) is facing the same strategic problems And it is being defeated, although in an economic war rather than in a conventional military one.


One of the fascinating things about history is how people tend to repeat the same mistakes over and over. A couple of generations are more than sufficient for leaders to forget everything their predecessors did, and run straight into a new -- but similar -- catastrophe. It is also called "history never repeats itself, but it does rhyme."

Then, among the fascinating sections of history, there is how people tend to get together to form those entities that we call "states" or, if they are large, "empires." They grow, they decline, they collapse, in a dance that lasts for centuries and that normally implies war, exterminations, and great suffering for large numbers of people. But most people seem to think that these purely virtual entities are important enough that human lives can be sacrificed to them. On this, history has been rhyming for a long time. 

Europe was often on the verge of becoming an empire, a single state with a centralized government. But that never happened. After the fall of the Roman Empire, Charlemagne was perhaps the first to have a go at a European Empire, during the 8th century AD. His "Holy Roman Empire" survived for nearly a millennium, but never included all of Western Europe. Then it was the turn of Napoleon Bonaparte, then the German Kaiser, then the German Nazis, and, recently, the European Union that, for the first time, didn't rely on military might. They were all failures, including the European Union -- an entity that nobody seems to want any longer. 

How should we see these events? A failure or a blessing? Of course, empires are not benevolent entities, and sometimes they do great damage. But a central European government might have avoided at least some of the bloodiest episodes of internecine European wars. It might also have injected some rules into the otherwise lawless worldwide expansion of the European states. The Holy Roman Emperor Charles V (1500-1558) enacted laws designed to stop the enslavement and the extermination of the Native Americans by the European colonists. Charles V ruled only part of Europe and these laws were ineffective. But we may imagine that, if they had been backed by a strong central authority, they could have helped the Native Americans to survive the European onslaught. 

So, why couldn't Western European states create a central government? After all, when it was a question of making some money by military conquest, they didn't find that it was so difficult to fight together. It happened during the crusades (12th-4th century), the attack on Russia by Napoleon in 1812, the Crimean war (1853-1856), the attack on China during the Boxer rebellion (1899 -1901), and a few more cases. But, normally, the European states preferred to carve their own empires and destroy each other in internecine wars. 

One major problem for a European government is simply geographical. Europe is a peninsula of Eurasia that ends with the Urals, but that's just a convention. Are the Russians Europeans? In many ways, yes, except when their Western neighbors decide that they are barbarians to be exterminated (as during WW2) or, at least, people whose culture is to be rejected or annihilated (as it is happening nowadays). So, where is the Eastern border of Europe? Nobody knows, and that's a sure recipe for war. 

Then, on the Western side, is Britain part of Europe? Geography says that it is, but do the British consider themselves Europeans? The best that can be said is that they normally do, but only when it is convenient for them. During WW2, there was a common saying in Italy that went as "che Dio stramaledica gli inglesi" (may God heavily curse the British). A bit nasty, sure, but it highlights a certain feeling that continental Europeans have for Britain.

Geography dominates politics, and the result is that all the attempts to create a stable coalition of European states faced, and still faces, an unsolvable strategic problem. At Europe's borders, on the East and the West, there are two powerful states, Great Britain (now largely replaced by the US Empire) and Russia (for a period, in the form of the Soviet Union). Neither has an interest in seeing a strong Europe arising, and they normally consider avoiding that as one of their strategic priorities. Neither Russia nor Britain ever were interested in invading Europe. The case is slightly different for the US Empire, which does keep its military stationed in Europe. But, even so, the US occupation is more a question of political, rather than military, control. In any case, during the past few centuries, emergent European Empires usually found themselves fighting on two opposite fronts, on the East, and on the West. An impossible strategic situation that always ended with not just defeat, but catastrophe. 

It was Napoleon who inaugurated the challenge of fighting Britain and Russia at the same time. The resulting disaster led to the disappearance of France from the list of the world's "great powers." Then, it was the turn of the German government to do the same mistake. As a remarkable example of the stupidity of government leaders, they managed to do it twice, in 1914, and in 1939. Note, incidentally, that Adolf Hitler himself, wrote in his Mein Kampf (1933) that Germany should never find itself fighting on two fronts. And then, he led Germany exactly into that! The mind of the "great leaders" is often imperscrutable, but you may be justified in thinking that they are not as smart as their followers think they are. 

After the catastrophe of World War 2, Europeans seemed to realize that the attempt to unify Europe by military means was hopeless. So, they tried a combination of diplomatic and economic actions. It was not a bad idea in itself, but it failed utterly as the result of several factors. Mainly, it was because the leaders never really believed in the idea of a United Europe and consistently tried to manage the European Union in such a way as to gather the most they could for their countries, without much regard for the collective good. In time, the higher layers of the EU fell into the hands of traitors bought by foreign powers. As a result, the attempts to create a European military force were sabotaged. During the past few decades, Europe was effectively defanged and declawed, and, to use an appropriate euphemism, "neutered" in military terms. (image below from "The Economist"). 
 



In the end, the EU went through the same sequence of failures that had doomed the previous attempts at unification. The "Brexit," the exit of the UK from the Union in 2020, was the economic equivalent of the military defeat of Napoleon at Trafalgar (1805), and of Hitler at the battle of Britain (1940). But the true disaster came with the current attempt of bankrupting Russia with economic sanctions. That was the equivalent of the disastrous dash to Moscow of Napoleon's army (1812) and of Hitler's "Operation Barbarossa" (1941). History does rhyme!

The economic war is still ongoing, but we can already say that Russia is surviving the sanctions while Europe has been badly damaging itself. No matter what the outcome of the war in Ukraine will be, Europeans now face a cold winter without a sufficient supply of fuel, and a probable economic disaster. The same outcome of Napoleon's and Hitler's campaigns -- even though not in military terms.  

And now? Disasters beget disasters, it is one more rule of history. The European relentless rejection of everything that has to do with Russian culture and traditions is a human disaster that cannot be measured in economic terms. The last thing Europeans needed was an enemy on their Eastern border. Now they have created it, and they will have to live with it, just as they will have to live with the climate disaster that they lost the capability to fight. And, most likely, the idea of a United Europe is now buried forever. 


Monday, March 28, 2022

Solutions that Worsen the Problem: Economic Sanctions

 

Economic Sanctions seem to be becoming more and more popular. There is no doubt that they can do a lot of damage to the targeted countries and, in some case, they are true weapons of mass destruction. But are they effective for the purposes they are supposed to have? (image from "Democracy Digest")


Economic sanctions are relatively new: and I can't find anything like that in ancient history. The oldest version known is probably the European blockade enacted by Napoleon against Britain from 1806 to 1814. It damaged more the blocking nations (Europe) than the blocked one (Britain). 

The next important blockade was enacted during World War I against the Central Empires. This one was successful, at least in terms of damaging the blocked nations. The victims of starvation caused by the sanctions are probably to be measured in millions. But whether something is a "success" depends on how you define it. You may argue that the sanctions made the survivors angry enough that they sought revenge 20 years later, with World War II. 

Another important case of economic sanctions was enacted against Italy in 1935 as a punishment for having invaded Ethiopia. In terms of economic damage, it may have been successful: the Italian economy was badly hit. But we could argue that the wrecking of the Italian Economy was more a result of the war expenses than of the sanction. In any case, it made Italians angry enough that they thought it was a good idea to declare war on Britain in 1940. It wasn't, as they soon discovered. 

These examples suggest that sanctions are an effective weapon against weak countries. Actually, they can be a true weapon of mass destruction directed against civilians. Whether they can accomplish anything useful, is another matter. If history tells us something, it is that sanctions tend to achieve results that are exactly the opposite of the intended ones, at least officially. 

And not just that. Sanctions often hurt the sanctioners as much as the sanctioned ones. So, it is hard to understand why they are so popular, especially in a world where we tend to glorify "free trade." But, right now, they are like the Colt .45 at the belt of a gunman in a Western Movie: the first thing that appears as soon as a crisis develops. There may be some logic in the idea, though. After all, sanctions are an inexpensive way to give the impression that the government is "doing something." That is what politicians are looking for. Their worst fear is being labeled as "weak," and the sanctions offer them a chance to avoid that.        

Will the current sanctions against Russia obtain anything useful? We have to see that but, so far, it seems that the rule that sanctions are a solution that worsens the problem is being confirmed. Not only the Russian public remains in favor of the "special operation" in Ukraine, but the sanctions seem to be hurting Western Europe more than Russia. But we are just at the beginning of the story, and we'll have to see what happens in the long run. 

For a historical perspective, below I discuss the case of the sanctions against Italy enacted in 1935.


Sunday, December 8, 2019

The Effect of the Sanctions: Is Italy Cracking Down Under the Strain?


Posted on "Cassadra's Legacy" in December 2019, republished with a different title and some modifications 


We can learn a lot about the effects of economic sanctions from the story of how Italy reacted to the international economic sanctions imposed on the country in 1935 by a coalition of World Powers. Above, a photo from 1935. It shows a stone slab with the engraved words, "On 18 November 1935, the world besieged Italy. Perennial infamy on those who favored and consumed this absurd crime." Most of these slabs were destroyed after the defeat of Italy in WW2, but some can still be found.


In 1935, Italy invaded Ethiopia, at that time the only remaining free African country. Why exactly that happened is a long story. Let me just say that, in part, it was a revenge for a defeat suffered long before, when an early attempt at invading Ethiopia had failed. In part, it also had to do with reacting to the financial crash of 1929: governments often tend to seek for external enemies to distract people from internal troubles. Then, in part, it was seen as a way to displease the hated British, seen as guilty of not providing for Italy the coal that the Italian economy needed. And, finally, it had to do with some nebulous dreams about rebuilding the Roman Empire. It may sound silly, today, but if you read what people wrote at that time in Italy, the idea of creating a new Roman Empire was taken seriously.

Whatever the reasons, in 1935 the Ethiopian army was overwhelmed by the modern weaponry deployed by Italy: modern guns, planes, tanks, and the like, with the added help of poison gas bombing, a military innovation for that time. The final result was that the King of Italy gained the dubious honor of taking for himself the title of "Emperor of Ethiopia" and that Italy gained "a place in the sun" in Africa, as the propaganda described the results of the campaign.

A victory, yes, but a hollow one. From the beginning, Ethiopia was only a burden to the Italian economy, and the costs of the military occupation were just too much for the already strained Italian finances. The final result was perhaps the shortest-lived empire in history: it lasted just five years, collapsing in 1941 when the Italian forces in Ethiopia were quickly defeated by a coalition of Ethiopian and allied forces.

An interesting side effect of the invasion of Ethiopia was the story of the imposition of economic sanctions on Italy by the League of the Nations. It was a half-hearted effect to stop the invasion, but the war lasted just 8 months and the sanctions were dropped just two months afterward. Their effect was nearly zero in economic and military terms but, in political terms, it was a completely different story, and the consequences reverberated for years. Here are some of these consequences:

1. The Italians were not only appalled at the sanctions, they were positively enraged, appalled, livid. According to the international laws of the time, for a state to attack another was not in itself a crime (unlike the use of chemical weapons, but that came to be known only later). So, most Italians felt that they were punished for having done something -- annexing an African country -- that the other Western Powers had done many times before without anyone complaining. The result was a burst of national pride and a strong wave of popular support for the war. That generated also a wave of personal popularity for the Italian leader, Benito Mussolini, seen as the one who was making Italy great again (some things never change in politics).

2. The sanctions soon were presented by the government's propaganda as an epic and grandiose struggle undertaken by the glorious "proletarian nation" that Italy was against a coalition of the great plutocracies of the world, Britain in particular. And, by defeating this coalition, Italy showed that it was a great power, too, on a par with the others. This idea had terrible consequences when it led the Duce, Benito Mussolini, to think that Italy could match the military capabilities of the major world powers in WW2.

3. The government propaganda in Italy also used the sanctions to magnify the importance of the Ethiopian campaign. If the Northern Plutocrats had reacted so violently against Italy, it was because they feared Italy very much. As a result, Ethiopia became a national priority, to be kept at all costs. At the start of WW2, Italy had more than 100,000 fully equipped troops there. Without the possibility of being resupplied from Italy, these troops had no chance against the British, and they were rapidly wiped out. What might have happened if they had been available in other war theaters? It is unlikely that the final outcome of WW2 would have changed, but, who knows? The battle for Egypt in 1942 could have had a different outcome if Italy had been able to field 100,000 more troops there and, maybe, take the Suez Canal.

This catalog of disasters is so impressive that we might wonder if the sanctions were not just the result of incompetence and idiocy, but of an evil machination. Could it be that the British wanted Italy to engage in an adventure that was sure to lead the country to ruin, a few years later? Of course, it is unlikely that the British had been planning exactly for what happened, but it is not impossible that they understood that the Italian military apparatus would be weakened by the task of keeping Ethiopia and that would make Italy a less dangerous adversary in case of an all-out military conflict. If the British had planned that, they truly deserved the reputation they had at the time (and that they still have) described with the name of the "Perfidious Albion."


Monday, March 14, 2022

All the World is a Stage: How the Global Drama is Being Played Out

 

The "Commedia dell'Arte" was a form of popular theatre, often played without a script. The masked actors would improvise according to the characteristics of their "persona", their mask.


There are many ways of predicting the future, and my remote ancestors, the Etruscan Haruspices, would do it by examining the liver of a freshly killed goat. I may have inherited from them my interest in the future, although I don't usually go around killing goats. 

A gentler way of studying the future consists in considering the world as a stage. You know what the characters are, what they want, the way they usually behave. Then, when you put them on stage, they may act and create a drama even without following a script. It was the way the ancient Commedia dell'Arte worked. No script, actors would just play their part, according to their "persona." a term that in Latin means "mask" and that in our times came to be related to "personality,"

It may also work for states. They have a certain persona, a way to behave that may be predictable. About two months ago, I proposed an interpretation of the current drama patterned on an older drama: the European tragedy of World War 2. The actors, the states, were different, but their masks were very similar, and I sketched out what their behavior could have been. 

You see how things are going: the world powers are acting on stage as their masks impose them to do. In particular, the EU is playing the role that was of Italy in 1940. The lack of natural resources forces the EU to depend on foreign sources, in particular on importing natural gas from Russia -- which plays the role that was of Britain in the 1930s: that of fossil fuel exporter. In the old drama, in 1940, Italy attacked its main coal supplier, Britain, in a desperately ineffective campaign. In my earlier post, I wrote that the current situation "could easily develop into a similar outcome as in 1941, with the EU doing something completely idiotic: attacking Russia." It is happening, although only indirectly, so far. And, as things stand, the EU campaign doesn't seem to be much more effective than the old Italian campaign against Britain, although not (yet?) turning into a similar humiliating disaster. 

The new drama is just in its early stages. If it continues along the same lines as the old one, we'll see the involvement of the bigger players and the growing confrontation will lead to some kind of final catharsis. Let's just hope that, afterward, there will be someone left to ponder on what has happened.

(h/t "Art Deco") 


Monday, January 10, 2022

How to keep gasoline prices low: bomb your gas station

 

An Italian fighter plane (note the "fasci" symbols on the wings) shot down in England in November 1940, during WW2 (source). Sending obsolete biplanes with open cockpits against the modern British Spitfires is one of the most glaring examples of military incompetence in history. Among other things, this old tragedy may give us hints about the current situation in the world and, in particular, why the consumers of fossil fuels tend to bomb their suppliers. 



Not everyone in Europe has understood exactly what is happening with gas prices, yet, but the consequences could be heavy. For a brief moment, prices rose of a factor ten over what was considered as "normal." Then, prices subsided a little but still remain way higher than before. Electricity prices are directly affected by the trend and that is not only traumatic for consumers, but also for the European industry. 

So, what's happening? As usual, interpretations are flying free in the memesphere: those evil Russians, the conspiracy of the Americans, it is all a fault of those ugly Greens who don't want nuclear energy, the financial lobby conspiring against the people, etcetera.

Let me try an approach a little different. Let me compare the current situation with that of the 1930s in Europe. Back then, fossil fuels were already fundamental for the functioning of the economy, but coal was the truly critical resource: not for nothing it was called "King Coal."

The coal revolution had started to appear in Europe in the 19th century. The countries that had large coal reserves, England, Germany, and France, could start their industrial revolutions. Others were cut off from the bonanza: the lack of coal was the main cause of the decline of the Southern Mediterranean countries. The Turkish empire, the "sick man of Europe," was not really sick, it was starved of coal. 

But it was not strictly necessary to have coal mines to industrialize: it could be done by importing coal from the producing countries. Sailing ships could carry coal at low cost just about everywhere in the world, the problem was to transport it inland. Coal is bulky and heavy, the only way to do that is to have a good network of waterways. And having that depends on climate: the Southern Mediterranean countries are too dry to have it. But Northern Mediterranean countries had the network and could industrialize: it was the case of Italy. 

Italy went through its industrial revolution much later than the Northern European countries but succeeded using British coal. That, of course, meant that Italy became dependent on British coal imports. Not a problem as long as the two countries were friendly to each other. Unfortunately, as it often happens in life, money may well take the priority over friendship. 

In the early 1920s, coal production in England reached a peak and couldn't be increased any more. That, of course, led to higher prices and cuts in exports. At that time, nobody could understand how depletion affects production (not even nowadays people do). So most Italians took the reduced coal supply from Britain as a geopolitical attack. It was an evil strategy of the decadent plutocracy called the Perfidious Albion, specifically designed to harm the young and growing southern countries.  

The Italian conquest of Ethiopia was the turning point of the struggle. Britain reacted by stopping the exports of coal to Italy. That, and other international economic sanctions, pushed the Italian economy, already crippled by the cost of the war, to the brink of collapse. Given the situation, events played out as if following a prophecy written down long before. Italy had to rely more and more on German coal and that had obvious political consequences. 

The tragedy became a farce when old Italian biplanes tried to bomb Britain into submission in 1940. The campaign lasted just two months, enough for the Italian contingent to take heavy losses before it was withdrawn (*). It was not just a tactical blunder, but a strategic disaster since it gave the British and their allies an excuse to bomb Italy at will. Which they did, enthusiastically and very successfully. 

The curious thing about this disastrous campaign is how it inaugurated a tradition: bombing one's supplier of fossil fuels. Italy's bombing of Britain was just the first of a long series: in August 1941, the British attacked and bombed Iran to secure the Iranian oil wells. They were much more successful than the Italians and Iran surrendered in less than a week. In the same year, in November, the Japanese attempted the same trick by bombing the United States, their main supplier of oil. The Japanese attack on Pearl Harbor was a tactical success, but a major strategic disaster, as we all know. 

After WWII, the "Carter Doctrine" implied the strategic value of oil producers in the Middle East. One of the outcomes was the protracted bombing of Iraq from 1991, still intermittently ongoing. Other oil suppliers bombed by Western states were Libya and Syria. 

In short, the tradition of bombing one's suppliers of fuels remains alive and well. Whether it can accomplish anything better than the disastrous attempt of Italy in 1941 is debatable, to say the least. After all, it is equivalent to blasting away your neighborhood gas station in order to get the gas you need, but this is the way the human mind seems to work. 

So, on the basis of this historical tradition, let's try to build a narrative about what's going on, right now, with the gas supply to Europe. We just need to translate the roles that some countries had in the 1930s with those of today. 

Coal --> Natural Gas
Italy --> Western Europe (EU)
Britain --> Russia
Germany --> USA

The correspondence is very good: we have a consumer of fossil energy (now Western Europe, then Italy) which is militarily weak, but threatens the supplier (Now Russia, then Britain) with military action despite the obvious superiority of the latter. The weak consumer (Europe/Italy) feels that it can get away with this suicidal strategy because it has the backup of a powerful ally (Now the USA, then Germany). 

Just like Britain did in 1936 to Italy, Russia appears to have reduced the supply of gas to Europe. In both cases, the result was/is a crisis in the economy of the consumers. Just as it happened in the late 1930s, the stronger ally is coming to the rescue: in 1936, Germany started supplying coal to Italy by rail, now the US is sending cryogenic gas to Europe -- both are expensive methods of transportation but allow the supplier to access a market that would have been barren, were it not for political reason. But becoming the customers of a militarily powerful country has political costs. 

The correspondence is so good that the current situation could easily develop into a similar outcome as in 1941, with the EU doing something completely idiotic: attacking Russia, hoping for the support of the powerful US ally. (also, traditionally, attacking Russia is done in Winter: what could go wrong?). 

One conclusion of this story is that humans always tend to worsen whatever major problem they happen to face. Apart from this, perhaps there is an alternative scenario that could lead Europe away from the perspective of nuclear annihilation: maybe we can learn something from the Italian experience. 

In 1936, during the coal embargo imposed by Britain, Italy carried out an attempt to reduce its consumption of fossil fuels that went under the name of "autarchy" (Autarchia). It was based on the renewable technologies available at that time, and it involved some crazy ideas, such as making shoe soles out of cardboard and dresses out of fiberglass. But, on the whole, the idea of relying as much as possible on national and local products made plenty of sense. It didn't work, mainly because the government squandered the Italian resources in useless wars, but, who knows? Today it might work better if we don't make the same mistake. 




(*) The Italian pilots had to fight with obsolete canvas biplanes: much slower than the British Spitfires. The Italian planes were also poorly armed, without an armored cockpit (the pilots used sandbags as makeshift armor), without sufficient heating, without the right training. And, of course, poor reliability of almost every mechanical system in a cold climate. Most of the Italian losses were due to mechanical failures, while no British planes are reported to have been lost to the Italians. If the definition of "epic" involves fighting against an overwhelmingly superior enemy, then the experience of the Italian force in the Battle of Britain can surely be defined in this way: an epic disaster. But whoever had this absurd idea deserved to be hanged, and at least one of them was.