Sep 27, 2016

Lionel Robbins on the delusion of stabilizing the price level (1934)

If, as soon as there appeared signs of a general boom on security markets, the Central Banks were to take action to bring it to an end, it seems probable that extremes of business fluctuations might be avoided.  Certainly this is a policy which would have averted much of the distresses from which the world has been suffering recently.

But whatever may be the truth in this very difficult matter, one thing seems tolerably certain.  The policy of stabilizing the general level of prices and ignoring all other movements is a snare and a delusion.  It was this policy, conjoined with that other policy of frustrating the effects of gold movements, to which we have already alluded, which was largely responsible for the catastrophe of 1929.  Again and again during the boom years we were assured by men who should have known better that the trade cycle had been eliminated, that so long as prices did not rise there was no fear of over-expansion, that the boom in land and common stocks was merely a reflection of the increased value of property, and that if there were any sign of a fall of prices due to a transfer of expenditure to Stock Exchange and real-estate speculation, then the Central Banks should create more credit to support the speculation.  This policy was pursued.  Yet such is the inflexibility of the human mind that, in spite of all that it led to, there are yet to be heard voices of men who failed utterly to see what was happening before the depression, and who throughout the slump, no doubt with the best will in the world, have consistently supported those policies which have arrested liquidation, prolonged uncertainty and delayed the coming recovery.


~ Lionel Robbins, The Great Depression, 1934

Sep 24, 2016

Charles Darwin on man's noble qualities and humble roots

Man with all his noble qualities, with sympathy which feels for the most debased, with benevolence which extends not only to other men but to the humblest living creature, with his god-like intellect which has penetrated into the movements and constitution of the solar system - with all these exalted powers - Man still bears in his bodily frame the indelible stamp of his lowly origin.

~ Charles Darwin

Sep 18, 2016

Charles Darwin on survival and adaptability

It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change.

~ Charles Darwin

Sep 17, 2016

Albert Jay Nock on the Law of Unintended Consequences

Any contravention of natural law, any tampering with the natural order of things, must have its consequences, and the only recourse for escaping them is such as entails worse consequences.

~ Albert Jay Nock

Sep 7, 2016

John Maynard Keynes on crowd behavior

Worldly wisdom teaches that it is better for the reputation to fail conventionally than to succeed unconventionally.

John Maynard Keynes

Aug 31, 2016

Lew Rockwell on Trump: "It's a big bonus that all the right people hate him"

It's a big bonus with Trump that all the right people hate him... To my knowledge, there's never been a dictator-businessman.  That says something. Doesn't mean there couldn't be a first time, of course...  I think it's good not to be part of a gang.  Maybe you'd have some new approaches.  It's one of the things that scares the whole regime about him, that he's unpredictable.  And of course I think that's a good thing because if he's unpredictable maybe he'll actually do something good, as shocking as that might be.

~ Lew Rockwell, interview with Jay Taylor, August 30, 2016

Aug 26, 2016

Satya Nadella on lifelong learning

If you take two people, one of them is a learn-it-all and the other one is a know-it-all, the learn-it-all will always trump the know-it-all in the long run, even if they start with less innate capability.

~ Satya Nadella, Microsoft CEO, interview by Dina Bass, Bloomberg Businessweek, August 8, 2016