To be great is to be misunderstood
COMMENT
Hi Martin,
In response to your blog post, “How to Think May Be the Key to Everything” I thought you might like this quote from Ralph Waldo Emerson:
A foolish consistency is the hobgoblin of little minds, adored by little statesmen and philosophers and divines. With consistency a great soul has simply nothing to do. He may as well concern himself with his shadow on the wall. Speak what you think now in hard words, and to-morrow speak what to-morrow thinks in hard words again, though it contradict every thing you said to-day. — ‘Ah, so you shall be sure to be misunderstood.’ — Is it so bad, then, to be misunderstood? Pythagoras was misunderstood, and Socrates, and Jesus, and Luther, and Copernicus, and Galileo, and Newton, and every pure and wise spirit that ever took flesh. To be great is to be misunderstood.
Louisiana Outlaws Cash Transactions for Used Goods
Louisiana has passed a bill that makes it ILLEGAL to pay for used goods with cash. You can no longer buy something at a yard-sale, flee market, or wherever paying cash. You must pay by check, money order, or electronic transfer. They claim this is targeted at criminals. Ya – good explanation, but totally unrealistic. The State is named after the King of France so it is not so unusual to see Louisiana adopt the same policies in France.
Most people are also unaware that the law in Louisiana is NOT the same as the rest of the nation. They did not follow English common law, but French. A jury trial does not require unanimous consent, instead, it is simply the majority.
Reality of Hyperinflation – the External Alternative
QUESTION: Mr. Armstrong; What did people really do during the German hyperinflation? It seems that all you hear about has been people running around with wheelbarrows of cash to buy anything. Was that truly reality or just the extremes?
God Bless
HS
ANSWER: Life actually went on. People used American dollars and other foreign currency. Time Magazine for December 31, 1923 reported that the German currency was worth almost nothing yet $12 in American money was paid for good seats at the National Opera in Berlin to see Mattia Battistini. As countries move toward a inflation crisis, it is CONFIDENCE that collapses and so they turn to external currency. The American dollar will still rise and be used in cash transactions as it is right now in Ukraine in the fact of their inflation. Zimbabwe has lost the right to print its own money. People use the currencies of other nations to this day. The same result took place in Japan where the government lost the CONFIDENCE of the people and was unable to produce money that would be accepted. The Japanese used rice and Chinese coins, but not their own county.
In Germany, people used foreign currency. The hyperinflation was the collapse in CONFIDENCE of government. They people turned mostly to foreign currency. They did not trust the new Communist Revolutionary government. This is why the hyperinflation took place. The bulk of the people turned to commodities, and others used foreign currency. This is the standard pattern that has ALWAYSemerged. So life goes on just as we see in Kiev. However, apartments rent in Kiev prices in foreign currency right now, not is domestic currency. The people lack CONFIDENCE in the government and will not retain any savings in local currency, which propels the inflation.
26 Yr Old Exposes Fraud of Piketty
A year ago, Thomas Piketty (43) of the most sought after economist of his generation. With weighty arguments that in capitalism’s income would be distributed increasingly unequal, the Frenchman had achieved something like rock star status. Nobel Prize winners were at his feet and praised his book, “The Capital in the 21st Century”, a masterpiece of science critique of capitalism. But now Piketty sees questioned at one time. A 26-year-old first PhD student at the prestigious Massachusetts Institute of Technology (MIT) in Boston said to have found fundamental errors in Piketty.
Matthew Rognlie read his book and began to recalculate. In two relevant points, he wrote then exactly one year ago on the economy Blog «Marginal Revolution” mistaken Piketty: First, the return on invested capital will not take steadily over the place and the economy, as Piketty say. Rather, the massive income scissors the last 50 years was mainly restricted to the real estate market. The true beneficiaries of the welfare gains are homeowners, so Rognlie – a finding that was confirmed by the explosive real estate markets in cities such as San Francisco, New York or Munich, London or Zurich.
Second, Piketty has the capital gains of the future obviously overestimated. Rognlie quoted the basic facts of diminishing returns, indicating the time and again Warren Buffett. The billionaire has been warning for years before that his profits can not grow as much as in the past and that investors are better advised to invest in the stock market as a whole.
Growing up is the clever student in a suburb of Portland (Oregon), the son of a data analyst and a librarian. On the Economy, he moved to his own words because of his passion for computer modeling, politics and mathematics. Even before the Piketty-critical articles he had excelled in international student competitions and won a dozen awards. Forehand he earned his money as a teaching assistant at MIT, but probably it a vocation as a professor at a prestigious university to be sure.
Rognlie is his thing is for sure. Piketty have “a subtle but absolutely decisive point” was overlooked and the richness debate addressed upside down. The investment income of the future would namely not rise still higher, but gradually decrease. He has already defended against Nobel Prize winner and MIT professor Robert Solow his antitheses. Piketty and he has replaced his objections by e-mail without having to be even closer. The famous Frenchman took the usual defense of his position, saying of “some confusion” and stressed that he had never spoken of a steadily growing social imbalance, but only by a larger wealth gap than today. Then Rognlie responded with an e-mail: Piketty must have been “more concrete arguments,” if his theories to achieve sustainability.
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