Wednesday, December 14, 2011

Statutum in favorem principum

Expect concessions to be extracted from the larger Euro members. This will be a temporary fix, of course, but such behavior is rational and expected when weakness is perceived.

The Statutum in favorem principum is a good example of this. In order to solidify his Germanic holdings, the Holy Roman Emperor Frederick II ceded veto authority to regional prince with respect to any additional laws. These actions had the additional effect of validating England's newly minted Magna Carta, itself a testament to the dangers of the concentration of power.

Unproductive war was the cause of most of the above. Unproductive investment is the cause today.

So it goes. Power concentrated, pressured, exploded, and dissipated. We are in the pressured stage.

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