Poling, Paddling, Oarlock, Oar, the Galley, Sail, Square-Rig, Lateen-Rig and the Carrack

Posted by PITHOCRATES - August 14th, 2013

Technology 101

(Originally published January 11th, 2012)

The Modern Container Ship is Powered by Diesel Engines making Ocean Crossings Safe, Reliable and Efficient

Trade required a way to move heavy things in large quantities.  Railroads do a pretty good job of this.  Ever get stopped by a mile long train with double-stack containers?  These are the hot-shot freights.  They get the right-of-way.  Other trains pull aside for them.  And they get the best go-power.  They lash up the newest locomotives to these long freights.  Carrying containers full of expensive treasures like plasma televisions, smartphones, computers, clothing, perfume, cameras, etc.  Unloaded from great container ships days earlier.  And hustled out of these great container seaports to cities across the U.S.

These goods came into the country the way goods have for millennium.  On a ship.  Because when it comes to transporting large cargoes there is no more cost efficient way than by ship.  It’s slow.  Unlike a train.  But it can carry a lot.  Which really reduces the cost of shipping per unit shipped.  Keeping sale prices low.  And profits high.

Diesel engines power the modern container ship.  That either turn a propeller directly.  Or by turning an electric generator.  Which in turn powers an electric motor that turns a propeller.  Makes crossing the oceans pretty much a sure thing these days.  And timely.  Day or night.  Wind or no wind.  With the current.  Or against the current.  But travel on water was not always this safe.  Reliable.  Or efficient.

Galleys were Fast and Maneuverable but Decks full of Rowers left Little Room for Cargo

Earliest means of marine propulsion was a man using a pole.  Standing in a boat with his cargo, he would stick the pole through the water and into the riverbed.  And push.  The riverbed wouldn’t move.  So he would.  And the boat he was standing in.  A man kneeling in a canoe could propel the canoe forward with a paddle.  By reaching forward, dipping the paddle into the water and pulling.  By these strokes he would propel himself forward.  And the canoe he was kneeling in.  We transfer the force of both poling and paddling to the vessel via the man-vessel connection.  The feet.  The knees.  Or, if sitting, the butt.  A useful means of propulsion.  But limited by the strength of the man poling/paddling.

The oarlock changed that.  By adding leverage.  Which was a way to amplify a man’s strength.  An oar differs from a paddle because we attach it to the boat.  In an oarlock.  A pivot point.  An oar is similar to a paddle but longer.  It attaches to the oarlock so that a short length of it extends into the boat while a longer length extends outside of the boat.  The rower then rows.  Facing backwards to the boat’s direction.  His short stroke inside the boat transfers into a longer stroke outside of the boat (the leverage).  And the attachment point allows the rower to use both hands, arms and legs.  He pulls with his arms and pushes with his legs.  The force is transferred through the oarlock and pushes the boat forward.  So a single stroke from an oar pulled a boat much harder than a single stroke of a paddle.  And allowed more rowers to be added.  We call these multiple-oared boats galleys.  Such as the Viking longship.  With up to 10 oars on a side.  Or the Phoenician bireme which had two decks of rowers.  Or the Greek trireme which had three decks of rowers.  Or the Carthaginian/Roman quinquereme which had five decks of rowers.

Of course, decks full of rowers left little room for cargo.  Which is why these ships tended to be warships.  Because they could maneuver fast.  Another means of propulsion was available, though.  Wind.  It had drawbacks.  It didn’t have the quick maneuverability as a galley.  And you couldn’t just go where you want.  The prevailing winds had a large say in where you were sailing to.  But without rowers you had a lot more room for cargo.  And that was the name of the game when it came to international trade.

The Carrack opened the Spice Trade to the European Powers and Kicked Off the Age of Discovery

Our first civilizations used sailing ships.  The Sumerians.  And the Egyptians.  The Egyptians used a combination of sail and oars on the Nile.  Where the winds and current were pretty much constant.  They used wind-power to sail upstream.  And oared downstream.  Both the Egyptians and Sumerians used sail to reach India.  The Phoenicians, Greeks and Romans used sail to ply the Mediterranean.  Typically a single square sail on a single mast perpendicular to the keel.  Then later the triangular lateen parallel to the keel.  A square-rig square sail worked well when the wind was behind you.  While the lateen-rig could sail across the wind. And closer into the wind.

The wind blew a square-rig forward.  Whereas the wind pushed and pulled a lateen-rig forward by redirecting the wind.  The lateen sail split the airstream.  The sail redirects the wind towards the stern, pushing the boat forward.  The wind going over the outside of the sail curved around the surface of the sail.  Creating lift.  Like an airplane wing.  Pulling the boat forward.

It was about this time that Europeans were venturing farther out into the oceans.  And they did this by building ships that combined these sails.  The square rigging allowed them to catch the prevailing winds of the oceans.  And lateen rigging allowed them to sail across the wind.  One of the first ships to combine these types of sails was the carrack.  The Portuguese first put the carrack to sea.  The Spanish soon followed.  Christopher Columbus discovered The Bahamas in a carrack.  Vasco da Gama sailed around Africa and on to India in a carrack.  And Ferdinand Magellan first sailed around the world in a carrack (though Magellan and his other four ships didn’t survive the journey).  It was the carrack that opened the spice trade to the European powers.  Beginning the age of discovery.  And European colonialism.

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Currencies, Exchange Rates and the Gold Standard

Posted by PITHOCRATES - June 17th, 2013

Economics 101

Money is a Temporary Storage of Value that has no Intrinsic Value

Giant container ships ply the world’s oceans bringing us a lot of neat stuff.  Big televisions.  Smartphones.  Laptop computers.  Tablet computers.  The hardware for our cable and satellite TVs.  Toasters.  Toaster ovens.  Mixers and blenders.  And everything else we have in our homes and in our lives.  Things that make our lives better.  And make it more enjoyable.  These things have value.  We give them value.  Some have more value to one than another.  But these are things that have value to us.  And because they have value to us they have value to the people that made them.  Who used their human capital to create things that other people wanted.  And would trade for them.

When we first started trading we bartered with others.  Trading things for other things.  But as the economy grew more complex it took a lot of time to find someone who had what you wanted AND you had what they wanted.  So we developed money.  A temporary storage of value.  So we could trade the valuable things we created for money.  That money held the value of what we created temporarily while we looked for something that we wanted.  Then we exchanged the money we got earlier for something someone had.  It was just like trading our thing for someone else’s thing.  Only instead of spending weeks, months even years meeting hundreds of thousands of people trying to find that perfect match we only needed to meet two people.  One that exchanges money for the thing we have that they want.  And another who has what we want that they will exchange for our money.  Then that person would do the same with the money they got from us.  As did everyone else who brought things to market.  And those who came to market with money to buy what others brought.

Money is a temporary storage of value.  Money itself doesn’t have any intrinsic value.  Consider that container ship full of those wonderful items.  Now, which would you rather have as permanent fixtures in your house?  Those wonderful things?  Or boxes of money that just sit in your house?  You’d want the wonderful things.  And if you had a box of money you would exchange it (i.e., go out shopping) for those wonderful things.  Because boxes of money aren’t any fun.  It’s what you can exchange that money for that can be a lot of fun.

Devaluing your Currency boosts Exports by making those Goods less Expensive to the Outside World

So there is a lot of value on one of those container ships.  Let’s take all of that value out of the ship and place it on a balancing scale.  Figuratively, of course.  Now the owner of that stuff wants to trade it for other stuff.  But how much value does this stuff really have?  Well, let’s assume the owner is willing to exchange it all for one metric ton of gold.  Because gold is pretty valuable, too.  People will trade other things for gold.  So if we put 1 metric ton of gold on the other side of the balancing scale (figuratively, of course) the scale will balance.  Because to the owner all of that stuff and one metric ton has the same value.  Of course moving a metric ton of gold is not easy.  And it’s very risky.  So, instead of gold what else can we put on that scale?  Well, we can move dollars electronically via computer networks.  That would be a lot easier than moving gold.  So let’s put dollars on the other side of that scale.  Figuratively, of course.  How many will we need?  Well, today gold is worth approximately $1,380/troy ounce.  So after some dimensional analysis we can convert that metric ton into 32,150 troy ounces.  And at $1,380/troy ounce that metric ton of gold comes to approximately $44.4 million.  So that container ship full of wonderful stuff will balance on a scale with $44.4 million on the other side.  Or 1 metric ton of gold.  In the eyes of the owner they all have the same value.

Moving money electronically is the easiest and quickest manner of exchanging money for ships full of goods.  These ships go to many countries.  And not all of them use American dollars.  But we can calculate what amounts of foreign currency will balance the value of that ship.  Or one metric ton of gold.  By using foreign exchange rates.  Which tell us the value of one currency in another currency.  Something that comes in pretty handy.  For when, say, an American manufacturer sells their goods they want American dollars.  Not British pounds.  Danish kroner.  Or Russian rubles.  For American manufacturers are in the United States of America.  They buy their materials in American dollars.  They pay their employees in American dollars.  Who pay their bills in American dollars.  Go shopping with American dollars.  Etc.  For everyday American transactions the British pound, for example, would be un-useable.  What these American manufacturers want, then, are American dollars.  So before a foreigner can buy these American exports they must first exchange their foreign currencies for American dollars.  We can get an idea of this by considering that container ship full of valuable stuff.  By showing what it would cost other nations.  The following table shows a sampling of foreign exchange rates and the exchanged foreign currency for that $44.4 million.

foreign currencies and exchange rates

If we take the US dollars and the Exchanged Currency for each row and place them on either side of a balancing scale the scale will balance.  Figuratively, of course.  Meaning these currencies have the same value.  And we can exchange either side of that scale for that container ship full of valuable stuff.  Or for that metric ton of gold.  Why are there such large differences in some of these exchange rates?  Primarily because of a nation’s monetary policy.  Many nations manipulate their currency for various reasons.  Some nations give their people a lot of government benefits they pay for by printing money.  Which devalues their currency.  Some nations purposely devalue their currency to boost their export sector.  As the more currency you get in exchange for your currency the more of these exports you can buy.  Most of China’s great economic growth came from their export sector.  Which they helped along by devaluing their currency.  This boosted exports by making those goods less expensive to the outside world.  But the weakened yuan made domestic goods more expensive.  Because it took more of them to buy the same things they once did.  Raising the cost of living for the ordinary Chinese.

The Gold Standard made Free Trade Fair Trade

Some economists, Keynesians, approve of printing a lot of money to lower interest rates.  And for the government to spend.  They think this will increase economic activity.  Well, keeping interest rates artificially low will encourage more people to buy homes.  But because they are devaluing the currency to keep those interest rates artificially low housing prices rise.  Because when you devalue your currency you cause price inflation.  But it’s just not house prices that rise.  Prices throughout the economy rise.  The greater the inflation rate (i.e., the rate at which you increase the money supply) the higher prices rise.  And the less your money will buy.  While the currencies at the top of this table will have exchange rates that don’t vary much those at the bottom of the table may.  Especially countries that like to print money.  Like Argentina.  Where the inflation is so bad at times that Argentineans try to exchange their currency for foreign currencies that hold their value longer.  Or try to spend their Argentine pesos as quickly as possible.  Buying things that will hold their value longer than the Argentine peso.

Because printing fiat money is easy a lot of nations print it.  A lot of it.  People living in these countries are stuck with a rapidly depreciating currency.  But international traders aren’t.  If a country prints so much money that their exchange rate changes every few minutes international traders aren’t going to want their currency.  Because a country can’t do much with a foreign currency other than buy exports with it from that country.  A sum of highly depreciated foreign currency won’t buy as much this hour as it did last hour.  Which forces an international trader to quickly spend this money before it loses too much of its value.  (Some nations will basically barter.  They will exchange their exports for another country’s exports based on the current exchange rate.  So that they don’t hold onto the devalued foreign currency at all.)  But if the currency is just too volatile they may demand another currency instead.  Like the British pound, the euro or the American dollar.  Because these stronger currencies will hold their value longer.  So they’ll buy this hour what they bought last hour.  Or yesterday.  Or last week.  There is less risk holding on to these stronger currencies because Britain, the European Central Bank and the United States aren’t printing as much of their money as these nations with highly devalued currencies are printing of theirs.

This is the advantage of gold.  Countries can’t print gold.  It takes an enormous expense to bring new gold to the world’s gold supply.  It’s not easy.  So the value of the gold is very stable.  While some nations may devalue their currencies they can’t devalue gold.  A nation printing too much money may suffer from hyperinflation.  Reducing their exchange rate close to zero.  And when you divide by a number approaching zero the resulting amount of currency required for the exchange approaches infinity.  Weimar Germany suffered hyperinflation.  It was so bad that it took so much money to buy firewood that it was easier and less expensive to burn the currency instead.  This is the danger of a government having the ability to print money at will.  But if that same country can come up with a metric ton of gold that person with the container ship full of wonderful stuff would gladly trade it for that gold.  Even though that person will not trade it for that country’s currency.  This was the basis of the gold standard in international trade.  When nations backed their currencies with gold.  And kept them exchangeable for gold.  Forcing nations to maintain stable currencies.  By maintaining an official exchange rate between their currency and gold.  If that nation devalued its currency the market exchange rate will start to move away from the official exchange rate.  For example, say the official rate was $40/troy ounce.  But because they printed so much of their currency they devalued it to where it took $80 to buy a troy ounce on the open market.  So a nation could take $80 dollars of that devalued currency and exchange it for 2 troy ounces of gold from that nation.  The official exchange rate forcing the nation to give away 2 troy ounces of gold for $80 when the real market exchange rate would only have given them 1 troy ounce.  So devaluing your currency would cause gold to flow out of your country.  And the only way to stop it would be to decrease the size of your money supply.  Undoing the previous inflation.  To bring the market exchange rate back to the official exchange rate.  Which is why the gold standard worked so well for international trade.  Nations could not manipulate their currency to get a trade advantage over another nation.  Making free trade fair trade.  Something few say today.  Thanks to currency manipulators like China.

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Poling, Paddling, Oarlock, Oar, the Galley, Sail, Square-Rig, Lateen-Rig and the Carrack

Posted by PITHOCRATES - January 11th, 2012

Technology 101

The Modern Container Ship is Powered by Diesel Engines making Ocean Crossings Safe, Reliable and Efficient

Trade required a way to move heavy things in large quantities.  Railroads do a pretty good job of this.  Ever get stopped by a mile long train with double-stack containers?  These are the hot-shot freights.  They get the right-of-way.  Other trains pull aside for them.  And they get the best go-power.  They lash up the newest locomotives to these long freights.  Carrying containers full of expensive treasures like plasma televisions, smartphones, computers, clothing, perfume, cameras, etc.  Unloaded from great container ships days earlier.  And hustled out of these great container seaports to cities across the U.S.

These goods came into the country the way goods have for millennium.  On a ship.  Because when it comes to transporting large cargoes there is no more cost efficient way than by ship.  It’s slow.  Unlike a train.  But it can carry a lot.  Which really reduces the cost of shipping per unit shipped.  Keeping sale prices low.  And profits high.

Diesel engines power the modern container ship.  That either turn a propeller directly.  Or by turning an electric generator.  Which in turn powers an electric motor that turns a propeller.  Makes crossing the oceans pretty much a sure thing these days.  And timely.  Day or night.  Wind or no wind.  With the current.  Or against the current.  But travel on water was not always this safe.  Reliable.  Or efficient.

Galleys were Fast and Maneuverable but Decks full of Rowers left Little Room for Cargo

Earliest means of marine propulsion was a man using a pole.  Standing in a boat with his cargo, he would stick the pole through the water and into the riverbed.  And push.  The riverbed wouldn’t move.  So he would.  And the boat he was standing in.  A man kneeling in a canoe could propel the canoe forward with a paddle.  By reaching forward, dipping the paddle into the water and pulling.  By these strokes he would propel himself forward.  And the canoe he was kneeling in.  We transfer the force of both poling and paddling to the vessel via the man-vessel connection.  The feet.  The knees.  Or, if sitting, the butt.  A useful means of propulsion.  But limited by the strength of the man poling/paddling.

The oarlock changed that.  By adding leverage.  Which was a way to amplify a man’s strength.  An oar differs from a paddle because we attach it to the boat.  In an oarlock.  A pivot point.  An oar is similar to a paddle but longer.  It attaches to the oarlock so that a short length of it extends into the boat while a longer length extends outside of the boat.  The rower then rows.  Facing backwards to the boat’s direction.  His short stroke inside the boat transfers into a longer stroke outside of the boat (the leverage).  And the attachment point allows the rower to use both hands, arms and legs.  He pulls with his arms and pushes with his legs.  The force is transferred through the oarlock and pushes the boat forward.  So a single stroke from an oar pulled a boat much harder than a single stroke of a paddle.  And allowed more rowers to be added.  We call these multiple-oared boats galleys.  Such as the Viking longship.  With up to 10 oars on a side.  Or the Phoenician bireme which had two decks of rowers.  Or the Greek trireme which had three decks of rowers.  Or the Carthaginian/Roman quinquereme which had five decks of rowers.

Of course, decks full of rowers left little room for cargo.  Which is why these ships tended to be warships.  Because they could maneuver fast.  Another means of propulsion was available, though.  Wind.  It had drawbacks.  It didn’t have the quick maneuverability as a galley.  And you couldn’t just go where you want.  The prevailing winds had a large say in where you were sailing to.  But without rowers you had a lot more room for cargo.  And that was the name of the game when it came to international trade.

The Carrack opened the Spice Trade to the European Powers and Kicked Off the Age of Discovery

Our first civilizations used sailing ships.  The Sumerians.  And the Egyptians.  The Egyptians used a combination of sail and oars on the Nile.  Where the winds and current were pretty much constant.  They used wind-power to sail upstream.  And oared downstream.  Both the Egyptians and Sumerians used sail to reach India.  The Phoenicians, Greeks and Romans used sail to ply the Mediterranean.  Typically a single square sail on a single mast perpendicular to the keel.  Then later the triangular lateen parallel to the keel.  A square-rig square sail worked well when the wind was behind you.  While the lateen-rig could sail across the wind. And closer into the wind.

The wind blew a square-rig forward.  Whereas the wind pushed and pulled a lateen-rig forward by redirecting the wind.  The lateen sail split the airstream.  The sail redirects the wind towards the stern, pushing the boat forward.  The wind going over the outside of the sail curved around the surface of the sail.  Creating lift.  Like an airplane wing.  Pulling the boat forward.

It was about this time that Europeans were venturing farther out into the oceans.  And they did this by building ships that combined these sails.  The square rigging allowed them to catch the prevailing winds of the oceans.  And lateen rigging allowed them to sail across the wind.  One of the first ships to combine these types of sails was the carrack.  The Portuguese first put the carrack to sea.  The Spanish soon followed.  Christopher Columbus discovered The Bahamas in a carrack.  Vasco da Gama sailed around Africa and on to India in a carrack.  And Ferdinand Magellan first sailed around the world in a carrack (though Magellan and his other four ships didn’t survive the journey).  It was the carrack that opened the spice trade to the European powers.  Beginning the age of discovery.  And European colonialism.

www.PITHOCRATES.com

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