State Space Models

All state space models are written and estimated in the R programming language. The models are available here with instructions and R procedures for manipulating the models here here.
Showing posts with label Geopolitical Alignment. Show all posts
Showing posts with label Geopolitical Alignment. Show all posts

Friday, May 15, 2026

East-Asia Pacific: Alternate Futures

 


May 15, 2026 Trump-Xi summit ends on cordial note but no breakthroughs ... - CNN

President Trump seems attracted to the old idea of Spheres of Influence when pursing Geopolitical Alignments. Critics argue that the idea is useless, at least for the US and China in the 21st Century. But President Trump presses ahead, leaving Europe and NATO while focusing more directly on Latin America. The idea seems to be that China's Sphere of Influence would naturally be the East-Asia Pacific Region (EAP). In this post, I use the EAP_L20 Model to ask what type of Geopolitical Alignment (if any) would be best for the people of the Indo-Pacific.

All of the Geopolitical Alignments for the EAP Region are unstable (except with China) while alignment with China (CN) produces rapid growth-and-collapse out to 2100.


In other words, allowing CN to assert it's Sphere of Influence over EAP would produce growth and stability benefits for the Indo-Pacific. China, however, does not seem to be interested.



Notes

Measurement Model



AIC Statistics



EAP_L20 Model CN Input



Sunday, June 22, 2025

World-System (2000-2150) Seven Futures for Iran


The Trump II Administration in the US has just attacked Iran and claims to have seriously damaged Iran's Nuclear Sites (here). Iran claims it will retaliate, but the future after the unprecedented attack using B2 Stealth Bombers and Bunker Buster Bombs remains unclear both for Iran, the US and Israel (who started the attacks on Iran). The future is unknowable and there is a lot of current speculation. I can use the IR_LM (Iran, Late Modern) model to project seven possible future scenarios for Iran (graphic above).

The Business-as-Usual (BAU) model is clearly the best and it forecasts unending exponential growth for the Iranian Economic System. The worst scenario is Geopolitical Alignment with China (CN) which leads to collapse. The scenario for alignment with Russia (RU), (light-blue dashed line) is quite cyclical and unstable. Alignment with the US produces stable growth out to 2100. The World System (W) and the EU Alignment models are not much better than a Random Walk (RW).

These seven scenarios suggest that Iran would prefer to be left alone to pursue its own future, but that seems unlikely to happen. Geopolitical Alignment with the US  would also produce a desirable future, but that also seems unlikely to happen. Russia (RU) might be attractive in the very short run but that alignment will prove to be unstable. This leaves Iran with no desirable futures within the IR_LM BAU model.

You can experiment yourself with the IR_LM BAU model here. The period prior to the Iranian Revolution of 1979 sowed possibilities of alignment with the West, but after the Revolution the economy was converted into strong central planning aimed at Autarky (see the Economic History of Iran). In these circumstances, the IR_LM BAU model could be stabilized at any time by reducing growth rates (a counterfactual you can run here). Notice in the IR_LM BAU Model that the feedback controllers are dominated by Globalization, Unemployment, Ecological Footprint and Energy Use.

ChatGPT reports the following:


For more information about how the statistical models were constructed and estimated see the Boiler Plate.

The Axis of Evil


Further reading:

Blog Roll:

Thursday, June 12, 2025

World-System (2000-2100) Six Futures for China, One Scary

 


Most Geopolitical Alignments are mildly beneficial, except for alignment with the World System which is not. The order of benefits (in terms of comparison to a Random Walk, RW) are Asia Region (AXJ), Business as Usual (BAU, no alignment) and United States (US). 



One forecast missing from my standard forecasts (and the most concerning) is the one involving Geopolitical Alignment between Russia and China. Although the alignment has been publicly proclaimed by each country, there is increasing concern about CN intelligence activities in Russia (here). For more information about China-Russia relations, see the Wikipedia page (here).

I will investigate Global South alignments for China in a another post here. For more information about how the statistical models were constructed and estimated see the Boiler Plate.

Notes

Excerpts from ChatGPT:

Monday, February 24, 2025

World-System (1960-2100) Six Futures for Germany

 



In a prior post (here) I presented results from the DEL20 Model that suggested the German Economy may have reached a steady state sometime after the year 2000. I have also argued (here) that the Steady State Economy, although it will solve some environmental problems by stabilizing CO2 emissions, might create other Geopolitical problems by becoming the target of predatory economies focused on World domination (e.g., Germany in the Nineteenth Century) The question for this post is whether some (new?) Geopolitical Alignment might protect Germany from the (possible) fate of stagnant steady-state economics. The answer isn't encouraging.

From the graphic above, you can see that alignment with the European Union (EU) or Business as Usual (BAU, NS, RW) don't shock the German Economy out of the steady state. Alignments with the World System (W) or the United States (US) are even worse. Here are the specific results:
  • Random Walk (RW)
  • Nation State (NS)
  • European Union (EU)
  • Business as Usual (BAU)
  • World System (W)
  • United States (US)
  • Russia (RU)


NOTES