I am coming to the end of the Lexus and The Olive Tree. In part three of his book, he had a very interesting analogy for the world’s economic systems. If they were a gas station….

Japan - the gas costs $5/gal, but there are five guys who service your car. They pump your gas, fill your tires, and clean your windshield. They are all guaranteed to have their jobs for life.

I’m still listening to The Lexus and the Olive Tree, which I mentioned back back on 12 March, since it’s a massive 21 hour book. Today I heard what I consider to be one of the most interesting theories involving wars. The author of the book noticed that no two countries containing a McDonald’s in their borders had ever fought. In other words, if Country A and Country B both have a McDonald’s they won’t fight each other. If Country C didn’t have a McDonald’s, then it may be attacked by either Country A or Country B, or it may attack either of these countries. His main exclusion to this theory is that a Civil war doesn’t count, so the problems in Yugoslavia don’t disprove the theory. The author then took his theory to McDonald’s who then independently verified that no two countries containing a McDonald’s had ever attacked each other.

I recently began listening to an unabridged version of The Lexus and The Olive Tree and I must say that after about ten minutes of listening to the book, I’m quite disconcerted over the increasing connectedness of countries and their ability to affect each other. Allow me to illustrate this by paraphrasing the book’s opening story.

In 1998 the Thai government had been keeping the currency, Boht, valued at one US dollar. Banks and investment first in Thailand therefore were borrowing money from US banks for their ventures since US banks were much more stable. In August of 1998 the Thai government, for whatever reason, decided to no longer tie the values of the two currencies and the Boht fell to 30 Boht for 1 US dollar. The Thai banks now had to come up with a lot more money to pay back their loans to the US banks. A short time later, 56 of Thailand’s 58 major banks closed down. Over 20 thousand white collar workers in Thailand lost their jobs. Foreign investors began removing their money from developing Southeast Asian countries such as Thailand, South Korea, and others. This would have only caused an asian recession except for the ties to Russia.