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You forgot to mentioned in your article that these two items of sovereignty are strongly connected. All the sovereign governments never hesitated to use violence when discovered that someone violated the prerogative monopoly of the governments, the right to mint money. This is also the reason why Bitcoin has difficulty to become a widely used currency. Lately several cases of digital theft of Bitcoin went unpunished since there is no authority who is responsible to punish this criminal act.
The US economy, due to overpriced US$ became in the last 20 years the vacuum cleaner of the world excess production capacity, and payed for it with borrowed money. The same happened in Europe in much smaller scale between the northern producing (mainly Germany)and the southern borrowing and consuming countries. This imbalance had to bring economic crisis, unless some politician would stop this trend before the crisis and change the trend. The economic crisis did not come yet because of the responsible economic policy of China, which in-spite of common understanding that US will never eventually pay back its debt in the real terms, agreed to continue their policy of lending to US and gradually reducing the mutual dependance of Chinese and US economy. Stable economic growth in US can start again after the US debt problem will be solved.
Up to 2008, the savings of US citizens declined until they reached almost negative figures. This process gained momentum from the credit policy of the banks.
Then one day US citizens woke up and discovered that they were over indebted to such an extent that their assets could not be used for additional loans, but on the contrary, their liabilities exceeded their assets.
There are indications that their mood has changed as regards their propensity for saving and consuming is concerned. The very first sign of this change is that in the last five years they have reduced their debts by about 1 trillion US dollars. Even for the US economy, this is a substantial squeeze on the volume of money in circulation, either in its potential or in its kinetic state. This decrease in US citizens’ demand for credit should not surprise us if we take into account that in the same period their real estate assets lost value to the tune of 3 trillion US dollars. So there is still a long way to go before US citizens will be able to feel the same level of security, they enjoyed before the outbreak of the economic crisis of 2008.
The US government and the Federal Reserve (the US Central Bank) tried its best to balance this squeeze by the antidote of monetary easing, and increased its debts by 5 trillion US dollars. Yet as might be expected none of this has worked, because neither the US government, nor the Federal Reserve Bank, nor even the commercial banks, can translate it to aggregate demand to this extend. This can be done only by the US citizens themselves. And so long as they have no faith in the US economy (and my wild guess is, it is somehow connected to the US government deficit and accumulated debt to the Chinese) they will continue to reduce their demand for credit and increase their savings.
Data source; www.federalreserve.gov/releases/z1/Current/z1.pdf http://rodeneugen.wordpress.com/2013/04/10/1801/
In Europe the European commission created research fund of more than 1 billion Euros for the human brain project, http://www.humanbrainproject.eu/hbp-summit-2013-o...
Who is to be blamed that after decolonization in the fifties of last century Egypt, Syria, Iraq, Libya, Tunisia and all the rest become military dictatorships oriented on USSR. Who is to be blamed that G.A. Nasser, the most prestigious Arab leader since the times of Selahedine, the leader of Egypt, Arab world, one of the triumvirate of Third Word leaders, used his political prestige mainly to endorse international military conflicts, (and not only against Israel). Who is to be blamed that these dictators did not create some sort of liberal society that would at least educate its people and not bring Egypt to 21 century with 30% illiteracy? Who is to be blamed, that even after the collapse of USSR, when the failure of their centralized political, social and economic system of governance become so obvious that even some Sub-Saharan countries turned to democracy, in all the Arab countries the dictatorships continued as if nothing happened? Who is to be blamed that these dictatorships, let all the religious conservative political forces to be active beneath the official political leadership, while they strangled any secular God forbid liberal politically active civil society? Who is to be blamed, that to achieve political legitimacy, instead to loose their grip of political power, all these dictatorships turned to political Islam and by doing so, it even more postponed the adaptation of modern values in their countries, that are necessary to be able to run an effective political, social and economic system? Of course all the blame is on USA and its allies.
After Israel miraculously recovered from economic crisis of 1973-1989, it was flooded at 1990 with 1 million (more than 20% increase of the population), new highly skilled highly committed Russian Jewish immigrants who within less than two decades help Israel to become one of the technologically most advanced countries in the world. Of course Israel always had highly skilled population and relatively well functioning democratic government.
About the economic miracle viz; http://rodeneugen.wordpress.com/2012/05/14/israel... http://rodeneugen.wordpress.com/wp-admin/post.php...
How all this is connected to the other countries, you need help from someone else.
Chinese economic development has speed up if compared to the US and the European economy since 2008. The major drive of this economic growth was investment. A temporary slow down of this process is necessary, if there should be a shift of the economy from investment to consumption. And in consumption still a lot can be expected. Do not forget most of the Chinese population is about to purchase their first TV set, and never owned a private car.