How a single invention changed the course of history.
Until recently I struggled to understand how the Dutch Republic, a tiny newly established state on the European periphery, could dethrone the Portuguese Empire in a spice trade. It's not exactly that Iberian sailors were schoolboys. On the contrary, they were instrumental in imposing their power on locals of the Indian subcontinent and islands of the Far East. They epitomized the state of the art in shipbuilding and navigational know-how of the era. And yet, the Dutch prevailed. But a little historical context first.
- On May 4th, 1493, Pope Alexander VI issued a bull "Inter caetera" to divide the newly discovered world between Spanish and Portuguese monarchies.
- In 1494 the Treaty of Tordesillas was negotiated to better define boundaries.
- Portugal discovered the Spice Islands (modern Indonesia) in 1512.
- 1568 –1648, Eighty Years' War. Dutch ultimately succeeded in gaining independence from Habsrubgs.
- In 1580 the Iberian Union was formed. A previously neutral Portuguese Empire entered the ongoing conflict with the Dutch, on the side of Spain. Hostilities expanded to the high seas.
- 1595 – 1597, the First Dutch Expedition to the East Indies. It had limited success, however, it demonstrated the viability of the enterprise and opened the door for future expeditions.
- In 1602 The Dutch East India Company (VOC) was formed. It is one of the first joint-stock companies in the world and a significant financial innovation by itself. The opportunity to invest was open to all members of society.
- 1628, The Portuguese established the Portuguese East India Company, a joint-stock company with the king as the majority shareholder. Portuguese dominated east trade in this period.
A stage was set in the late 16th century, and early 17th century, for a trade and military competition between the Dutch and the Portuguese over the spice trade. It later developed into a conflict known as the Dutch-Portuguese War of 1598-1663. Not only did the Dutch come up on top, but they also managed to defeat England in the Second Anglo-Dutch War (England was victorious in the first one). Brits were getting upset with the Dutch monopolizing the trade. Not to mention several wars against a little catholic fellow known as Louis XIV of France. The Dutch Republic entered its Golden Age.
Arguably, a single invention, by a modest farmer catapulted the Dutch to its zenith. In 1594, Cornelis Corneliszoon van Uitgeest developed a machine to harness wind power to saw wood. He built his first sawmill. The critical component of his design was a crankshaft, which converted circular motion into back-and-forward motion powering the saw. He made additional improvements in the subsequent years and obtained a few patents. Initially, local carpenters opposed the invention, but very quickly the whole society realized the benefits, for plenty of ordinary citizens were VOC investors. Productivity soared by a factor of 30 (3,000%). The Dutch started to crank out ships at unrivaled speeds and quantities.
By the early 1600s, the Dutch Republic became the world's foremost naval power. The Spanish fleet was destroyed in 1607 at the Battle of Gibraltar. By 1650, the Netherlands had about 16,000 merchant ships. In 1667, in Raid on the Medway, the Dutch delivered a crushing naval defeat to England. The next year, William III aka William of Orange, toppled James II and put himself on the British throne, to end the beef with England.
This fascinating story underscores the importance of technological innovation and its application to the balance of power. This is especially breathtaking if one considers the population of competing powers in the 17th century.
Iberian Union and possessions ~ 28.7M
England and possessions ~ 5.6M
Kingdom of France ~18-20M
Dutch Republic ~1.5M
The U.S. can trace its innovative dynamism to the Dutch lineage.
#history
В гостиничных номерах мини бар, холодильник с напитками, и прочие цацки. Заоблачные цены на эти товары рассчитаны на ультра ленивых пижонов, с крайне слабой финансовой конституцией.
Пачка презервативов (2 шт.) облегчит гостя на $50!!!
Возите всё необходимое с собой. Как вариант, прогулка в магазин займет 10 минут.
#travel #Vegas
Сейчас в Вегасе проходят National Finals Rodeo (NFR). Никогда ранее не встречал такой концентрации людей в ковбойских шляпах и сапогах. Ощущение будто половина Техаса колонизировала все приличные гостиницы. Смотрятся эти персонажи стильно и уверенно. Особенно дамы. Даже подростки щеголяют в этих не дешёвых головных уборах.
#AmericanDynamism
Trade wars always hurt exporters more.
Back in 1930 the Smoot–Hawley Tariff act was signed into law. During 1920s, due to improvements in production, agricultural output in the U.S. soared and prices went down. Farmers were experiencing lower standards of living, due to a widening gap between prices for their produce and goods they were buying. During 1928 Republicans maintained majorities in the House and in the Senate. Hoover was a Republican too. The same trifecta we're having today. Both chambers passed the legislation, lobbied by farm interests, with wide margins.
The problem was that the U.S. was actually running a trade surplus at the time. It was an exporter of manufacturing goods and agriculture to the rest of the world, just like China is today. Without abilities to sell to US market, other countries were not receiving cash to pay for their imports, mostly from the U.S. Many countries retaliated in kind. Global trade collapsed. Manufacturing sector, which was already far more important, took a plunge. This was one of the major causes for the Great Depression.
Keep that in mind when you hear proposals to raise tariffs on goods from Mexico. US actually has a sizeable trade surplus with its southern neighbor.
https://ritholtz.com/wp-content/uploads/2026/12/mexicoimports.png
#economics #politics
December 2024
Методичка популиста.
1. Обозначить цель для конфронтации, которая и так никогда не произойдёт. Публично предостеречь мнимых врагов. Цена – 0.
2. Подождать. Цена – 0.
3. Через время заявить избирателю о победе - враги не добились своей цели. Profit. Политические очки в корзину.
Именно в таком ключе стоит понимать следующую цитату Трампа.
The idea that the BRICS Countries are trying to move away from the Dollar while we stand by and watch is OVER. We require a commitment from these Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. Dollar or, they will face 100% Tariffs, and should expect to say goodbye to selling into the wonderful U.S. Economy
Meanwhile in Brooklyn
6 Sheep Seen Sprinting Through Brooklyn Friday | Brooklyn, NY Patch
https://patch.com/new-york/brooklyn/live-sheep-seen-sprinting-through-bushwick-friday
The tragedy of American geopolitics is the following hypocrisy. Internally, the U.S. welcomes and cherishes cultural, ethnic, and religious diversity. We embrace a free market of ideas and subjective pursuit of happiness. Yet globally, we push for one type of statehood and one type only - a liberal democracy. Any other form of government is not to be tolerated. Perhaps this thinking arose from the experience of the American Century, the winning of the Cold War, the unipolar moment, and intellectual works such as Fukuyama's book "The End of History and the Last Man". The why doesn't matter. Not everyone shares or accepts this form of political organization. The results are more blood and misery around the world. In the long term, this will only erode our moral position and increase adverse consequences.
In the short term, however, life is good. As a former colleague of mine summarized: "I don't like the American foreign policy, hence I live within".
#AmericanImperialism
Пять игроков в ковбойских шляпах закрывают стол блэкджека от камер наблюдения.
#twotypesofpeople
Вегас. Гостиница. Мы заходим в лифт где уже несколько человек. Поехали. Одинокая дама вышла на своем этаже. Оставшийся мужчина обращается к нам с вопросом, знаем ли мы кто была наша попутчица. Я не совсем понял постановку вопроса и озвучил недоумение.
- Она сенатор от штата Миссисипи.
Ответил он.
В какой ещё стране, вот так просто, без охраны, обычный человек может случайно проехаться в лифте с сенатором?
#AmericanDynamism
As an IT pro with 25+ years of experience I never stop to be amazed how this industry innovates, rediscovers itself and sells its products and services to the corporate world.
Big tech conferences carried out by major firms are only one avenue to achieve these goals. They're often structured to mesmerize tech geeks with the latest and greatest. The idea is that these folks will create internal pressures at companies they work for to influence how IT budgets are spent. Smart.
Yet those in the know, people who actually make purchasing decisions, often with directorship titles play a different game.
First, a must have, is to attend lavish private dinners thrown by vendors with whom business was conducted. This allows for proper and legal thanks in vendor selection.
Second, sign up for vendor sponsored wine and dine events at fancy places. This is Vegas. Options are endless. These are vendors who are eager to get one's ear, hoping to influence buying decisions. Sales people will work the guests at the dinner and filter out lonely tech geeks. Then the higher ups will move in and invite, who they think are decision makers, for drinks at the bar. This is where a "vendor management" specialist will steer the party to a high end establishment.
In a classic good cop - bad cop style, one of us was highly critical of services an IBMer was selling passionately. By midnight the vocabulary was far from politically correct, but respectful nevertheless. Each new criticism was countered with purchasing more booze. And then it hit me.
Even during my past Vegas trips I was less exposed to the bar scene, where numbers of good looking professional ladies are through the roof. But last night, as we allowed vendors to buy us drinks, I suddenly became aware of the competition!
#AmericanDynamism
For some, the phrase "I don't understand" is a call to action. To learn, to develop and to acquire understanding. For others it's an excuse.
#twotypesofpeople
Манхэттен. Приличный концертный зал. Пять минут до начала выступления. Публика в ожидании. Вдруг громкое приветствие через весь балкон.
- Изя, у нас тут два свободных места, идите к нам!
- Моня, спасибо, нас четверо.
- Изя, у нас хорошие места!
- Моня, нас четверо.
Все два часа Моня втыкал в телефон. Размер шрифта был таким, что можно было читать его переписку за несколько рядов. Почти под занавес, Моня резко подскочил со своего места и продемонстрировал эксцентричные движения в ритм музыки. Доставив много положительных эмоций сидевшим рядом. Но творческий запал быстро иссяк. Не дождавшись окончания композиции, бухнулся в кресло и вернулся в телефон.
Выступала DAGAMBA. Свежо, драйвово и динамично.
#BrightonBeach #twotypesofpeople
November 2024
• At $63 trillion, the total value of US stocks is now four times bigger than all of Europe’s bourses combined. Ten years ago it wasn’t even twice the size.
• Europe doesn’t have a single public company valued at more than $500 billion. The US has eight worth more than $1 trillion.
The Stoxx Europe 600 Index is trading at a record 40% discount to the S&P 500 and this year’s underperformance is on track to be among the worst on record. The euro has slumped to its weakest level in over a year.
