Things of Interest

1. Irrational Voters: Bryan Caplan identifies...

four biases that prompt voters systematically to demand policies that make them worse off. First, people do not understand how the pursuit of private profits often yields public benefits: they have an anti-market bias. Second, they underestimate the benefits of interactions with foreigners: they have an anti-foreign bias. Third, they equate prosperity with employment rather than production: Mr Caplan calls this the “make-work bias”. Finally, they tend to think economic conditions are worse than they are, a bias towards pessimism.

I have seen all of these biases at work in other people and myself as well.



2. Chinese billionaire Yin Mingshan (尹明善) on liquidity

"We live in a world of over-abundant liquidity. We live in a China of over-abundant liquidity. Even relatively backward Chongqing is blessed with over-abundant liquidity."

I just met someone who bought land in Peru whose value has risen 500% in three years. Too much money chasing too few assets?

Red A's Reading

The Longest War: The Iran-Iraq Military Conflict by Dilip Hiro

So far its pretty interesting reading - I am still on the background chapters right now.

Interesting factoids:

Kurds:

a. Kurds apparently have been rebelling for centuries, and both Iran and Iraq funded Kurdish separatists in attempts to destabilize the other's regime since early in this century. You'd think this would eventually result in the Kurds being strong enough for their own nation, but no luck so far.

b. Barzanis have been involved in politics since the 1930's. Ca plus change...

Saddam's Iraq:

a. Saddam's regime became less secular and more Islamic in response to the 1979 Iranian revolution.

b. Michel Aflaq, a Greek Orthodox Christian, was a founder of the Baath party, and the Iraqi Baath's followed his ideology. The party split in the 60's and the Syrian wing was a bitter enemy.

Iranian Revolution:

"We will export our revolution to the four corners of the world because our revolution is Islamic; and the struggle will continue until the cry of 'There's no go but Allah, and Mohammed is the messenger of Allah' prevails throughout the world"
Sayyid Ruhollah Musavi Khomeini

Coincidence?

Saddam's father died when he was a baby. Khomeini's father was murdered when he was a baby.

Numbers:

Iraq fielded a 1.6 million man army at one point: 10% of its population. Iran with a population 3 times that of Iraq could only match Iraq's numbers.

Iraq spent 57% of its GDP on the war at its highest point, while Iran maxed out at 12%.

Predictions that proved correct:

"Having survived an armed adventure against Iran - indeed having emerged stronger militarily and politically as a result of it - Saddam might undertake another."