This page has been archived and commenting is disabled.

Albert Einstein's Timeless Advice For Investors

Tyler Durden's picture




 

Submitted by Tim Price via Sovereign Man blog,

“If I had an hour to solve a problem and my life depended on it, I would use the first 55 minutes determining the proper question to ask, for once I knew the proper question, I could solve the problem in less than five minutes.”

 

- Albert Einstein

Well into the summer of 1914, when the then 35-year old Einstein was a professor in Berlin, Europe’s stock markets were buoyant.

They initially shrugged off the assassination of the heir to the Austro-Hungarian Empire, Archduke Franz Ferdinand, in Sarajevo.

But as investors began to grasp the implications of a European war with Russia siding with Serbia, both bonds and stocks started to sag as proactive investors began to raise liquidity.

Historian Niall Ferguson points out that market makers on the London Stock Exchange, heavily reliant on borrowed money to finance their equity holdings, started going bankrupt.

Counterparty risk blossomed, and bill brokers were caught with customers on the continent unable to remit funds. There were fears of bank runs.

The Viennese stock market closed, on July 27, 1914. Within a week all the continental exchanges had followed, along with London and New York.

The world’s major stock markets remained closed for up to five months. This was reality finally setting in.

Today we have western stock markets either at, or close to, record nominal highs. Interest rates remain at 300-year lows.

This despite fears of a slowdown, and deflating credit bubble, in China, the looming end of QE in the United States, and military escalation in Ukraine. And an unreconstructed banking system in the euro zone.

Greece’s recent 5-year bond was floated at a yield of less than 5%. And demand was so strong it was -seven times- oversubscribed!

And the Dow Jones Industrial Average rose to an all-time high within HOURS of the US government announcing that Q1 GDP growth had ground to a halt. It’s a total disconnect from reality.

It seems crystal clear to us that developed world central banks are busily inflating bubbles that will inevitably burst. We just do not know when.

And the sad dilemma of our times is that the monetary authorities have made the successful pursuit of low-risk investing virtually impossible.

By driving deposit rates down to below the rate of genuine real world inflation, investors are effectively forced to take on much more price risk than they might otherwise choose.

We have long held that asset class diversification remains the last free lunch in finance. But asset class diversification alone is insufficient if there is genuinely a bubble in -everything-.

This presents a major problem for investors. So as Einstein suggested (quote above) and you had an hour to solve the problem, what question would you pose for the first 55 minutes ?

It isn’t just: what do we want to own ? Should it be a combination of appropriately valued stocks, bonds, property, cash, and gold ? How can we best avoid the more obvious risks to our capital ?

We think this dismal financial environment requires a return to first principles. So for us, it’s a question of: what do we want to achieve with our capital in the first place ?

We think for our clients, trying to “beat the market” is entirely the wrong objective today. Preservation is paramount.

And prudent investors should look for attractive valuations along the roads less travelled, less crowded by hordes of index-trackers determined ultimately to fall exactly in line with the central bankers who control them.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 05/06/2014 - 17:19 | 4733625 ugmug
ugmug's picture

Forming a question presupposes intelligence. Enough said....

Tue, 05/06/2014 - 17:26 | 4733652 DoChenRollingBearing
DoChenRollingBearing's picture

 

 

Q: Would taking $500 more out of the ATM on the way home be prudent?

Tue, 05/06/2014 - 17:26 | 4733656 negative rates
negative rates's picture

I would ask the question in 5 minutes and have the answer in 55.

Tue, 05/06/2014 - 17:29 | 4733669 DoChenRollingBearing
DoChenRollingBearing's picture

And that, sir, is why negative rates is the perfect name for you!

Tue, 05/06/2014 - 19:11 | 4734020 JLee2027
JLee2027's picture

 

“If I had an hour to solve a problem and my life depended on it, I would use the first 55 minutes determining the proper question to ask, for once I knew the proper question, I could solve the problem in less than five minutes.”

 

- Albert Einstein

 

This is perfect advice for many situations...design, for example. Once you solve that nagging problem of "how", the solution is usually very easy.

 

Tue, 05/06/2014 - 19:16 | 4734036 chumbawamba
chumbawamba's picture

Yes, great.  But this guy isn't even in the right ballpark with his question.

The question should be: what do institutional investors know that the little guy doesn't?

There's a reason this market isn't making sense: it's making sense to those who know what's really going on.  Unfortunately, 99% of investors don't know what's going on.

I am Chumbawamba.

Tue, 05/06/2014 - 19:58 | 4734150 MoneyPowerWomen
MoneyPowerWomen's picture

seems very true on the surface, but I am not sure.

Institutional Investors are led by humans who have personal incentives and/or habbits of behavious and belief that are making them behave in directions not neccesarily aligned with the best interests of the institutions themselves.

so maybe they dont know any more than the little guy?

 

Tue, 05/06/2014 - 21:39 | 4734324 old naughty
old naughty's picture

So did David Einhorn ask the right questions?

Oh, Ben is not Albert. And he had answers before the last 5 min?

 

Tue, 05/06/2014 - 17:45 | 4733725 seek
seek's picture

Wrong question.

Q: Will the US dollar have any value in ___ years?

(or Q V2.0: Will the US dollar's value be the same or higher in ___ years?)

If the answer is anything but yes, you're taking the wrong thing from the ATM.

Tue, 05/06/2014 - 18:01 | 4733795 DoChenRollingBearing
DoChenRollingBearing's picture

One hour.  I cannot buy gold in just one hour, nor BTC (for cash).  But, the ATM is just sitting there, sitting 100' from the street I drive along...

Gold better than (BTC and/or CA$H) better than electrons there in the bank.

***

Until a gold ATM arrives in my town...  

Tue, 05/06/2014 - 19:18 | 4734039 chumbawamba
chumbawamba's picture

In a world of functional idiots, how valuable is gold anyway?

Value is in the eye of the beholder and the pocketbook of the buyer.

I am Chumbawamba.

Tue, 05/06/2014 - 19:36 | 4734091 acetinker
acetinker's picture

Well Chumblez, in a world of people who work to support each other, irrespective of the means of exchange, how valuable is gold, anyway?

Wed, 05/07/2014 - 02:44 | 4735092 Mabussur
Mabussur's picture

Remark concerning Q V2.0 : You cannot formulate a yes/no question out of a postulate with 3 possible outcomes.

Tue, 05/06/2014 - 17:29 | 4733668 freewolf7
freewolf7's picture

"How can I prepare for the upcoming collapse?"

Tue, 05/06/2014 - 17:34 | 4733688 G.O.O.D
G.O.O.D's picture

"How can I prepare for the upcoming collapse?"

guns ammo canned goods condoms bic lighters kotex bandaids garden and a big fvking knife

Tue, 05/06/2014 - 17:35 | 4733692 Xibalba
Xibalba's picture

you forgot the flashlight

Tue, 05/06/2014 - 17:40 | 4733701 G.O.O.D
G.O.O.D's picture

no good unless you get the kind you wind.. oh and a fleshlight..

Tue, 05/06/2014 - 17:44 | 4733720 eclectic syncretist
eclectic syncretist's picture

my toilet still flushes, so all good here.

Tue, 05/06/2014 - 23:16 | 4734781 Anusocracy
Anusocracy's picture

The dog from the movie A Boy and His Dog.

Tue, 05/06/2014 - 17:56 | 4733775 Xibalba
Xibalba's picture

check out luminAID.  Got a couple for the b.o.b

Tue, 05/06/2014 - 17:42 | 4733706 G.O.O.D
G.O.O.D's picture

bic lighters.. if you need to see light everything on fire

Tue, 05/06/2014 - 20:56 | 4734331 Serenity Now
Serenity Now's picture

This made me LOL.  Funniest comment of the day.

Tue, 05/06/2014 - 19:10 | 4734015 bam
bam's picture

don't need no condoms!

Tue, 05/06/2014 - 19:42 | 4734092 Rantabulous
Rantabulous's picture

I agree that 'collapse' is a risk that needs to mitigated, and I have been working for some time to do so, but I have also been asking the question, 'and then?'.

By this I mean, let's say it is 'bad' - financial chaos, governments largely losing control and violently exercising 'authority' where they can, food shortages, disease, dramatic population reduction etc.

Eventually, there will be a new equilibrium. I am trying to guess at what that might be where I live, and what might my place be within it.

Even if everything goes 'Mad Max' - it may be that way for 10 or 20 years but it won't stay that way, and then...

Most famines, major wars, or pandamics only last a few years - they can do dramatic damage to population numbers in that time, but after a 'few years' a new equilibrium emerges. If I imagine where I live with 50% of the people gone - what are the products and services that will be needed - what do we have a lot of here - what will be naturally lacking.

I have moved to an agricultural area, where rainfall and temperature are expected to stay good according to IPCC projections until the end of the century - but there is no real industry here. 

I try to imagine this future and what I may be able to do to trade.

Tue, 05/06/2014 - 23:30 | 4734822 Nage42
Nage42's picture

How about being the guy who can run a bacteria culture for gram positive, and then dip into his stockpile of antibiotics?
The shelf life is pretty good if you store them right.

Wed, 05/07/2014 - 05:43 | 4735207 Rantabulous
Rantabulous's picture

Nage42 - that is absolutely brilliant - who wouldn't trade for antibiotics? I have a stockpile that I have purchased, but never thought of the value of making the stuff. It can't be rocket science, and what's more, my wife is a molecular biologist - so I have some in-house expertise that I could use. Seriously - thank you for the idea!

Wed, 05/07/2014 - 08:50 | 4735434 ACP5gTG
ACP5gTG's picture

What? . . . . no likkor?

 

Tue, 05/06/2014 - 17:41 | 4733704 Groundhog Day
Groundhog Day's picture

No Debt = No slavery

no fiat = no counterparty risk

Own Gold, silver, quality real estate with QUALITY tenants that will also survive the collapse (otherwise the RE is useless), be smart and short stocks at the appropriate time with risk management in mind. 

Thats all i got

Tue, 05/06/2014 - 18:27 | 4733882 Pure Evil
Pure Evil's picture

You forgot the mansion to house all your whores.

You think having sex will stop just cause everything else does?

#winningWhores

Tue, 05/06/2014 - 18:42 | 4733927 NoDebt
NoDebt's picture

"You think having sex will stop just cause everything else does?"

I sure hope not.

Tue, 05/06/2014 - 23:47 | 4734859 Rakshas
Rakshas's picture

..... sex never sleeps ...... dot Gov makes certain of that......

 

#IHaven'tHeardMyFartsInYears

Tue, 05/06/2014 - 17:32 | 4733675 Ying-Yang
Ying-Yang's picture

"Along the roads less travelled, less crowded by hordes"

You mean invest in Nevada State Highway 50 titled "The Loneliest Road."

http://www.youtube.com/watch?v=gO3g8P7gnqs

 

Tue, 05/06/2014 - 18:30 | 4733893 Matt
Matt's picture

Doesn't seem that lonely, if you broke down you'd see a car every ten minutes or so it seems. 

Tue, 05/06/2014 - 19:33 | 4734087 Nobody For President
Nobody For President's picture

Had to give you a greenie for that Y-Y. 44 years ago (next month) my brand new bride and I took that route in a new VW Kombi I had built a custom interior for as part of an epic 9 month journey looking for home. Found home a lot closer to Eureka CA than Eureka NV, but that video brought back a lot of memories. I lost her to cancer this February, after building a fine family and a fine homestead together. Kind of empty now - like a lot of Highway 50.

Tue, 05/06/2014 - 19:43 | 4734104 acetinker
acetinker's picture

Please accept my condolences, for as selfish as it is, I pray to a God I've never seen that my wife outlives me.

Wed, 05/07/2014 - 07:59 | 4735316 Ying-Yang
Ying-Yang's picture

God bless you NFP... my wife of 43 years and I are both cancer survivors who look in each others eyes and thank the big guy for sharing each day.

My memories like yours are sweet rewards for a good life lived with someone who loves me for what I am.

 

Tue, 05/06/2014 - 17:59 | 4733787 palmereldritch
palmereldritch's picture

Ironic (or perhaps 20/20 hindsight) that such a view is attributed to Einstein given he incorrectly formulated his most famous question producing the most frustrating and "special" theories

Another key mystery where Tesla differs from Einstein involves the paradoxical findings of Michelson and Morley who in 1887, tried to detect the ether by using two sets of mirrors pointed at each other and placed miles apart. One set was aimed in the direction the Earth was moving and the other set was aimed at right angles to the movement of the Earth. It was hypothesised that if the ether existed, once an impulse was sent, there would be a difference in the return times of each set, yet no difference was found.

Einstein essentially agreed with the findings by stating that by its nature, the ether could not be detected. However, Einstein also upped the ante considerably by also saying that if the ether could be detected then his theory of relativity was in error.5 Einstein further stated that if light could travel like a particle it would not need a medium (i.e., the ether) to travel through. Even though most of the great scientists of the day such as Maxwell, Faraday, Kelvin, Fitzgerald and Lorentz all accepted the obvious conclusion that there had to a medium of transfer in space, i.e., the ether, all of this was glossed over. This led to a generally accepted conclusion that the ether did not exist and that is the situation today, a full century later! It would take Einstein 15 years before he addressed this glaring misconception but the damage had already been done.

In 1920, lecturing at the University of Leiden, on the topic “Ether and the Theory of Relativity,” Einstein stated outright that the ether did exist, that is was necessary as a medium of transfer because light also had wave-like properties. He even wrote Lorentz to clarify this point.6 But by now, the damage had been done. This lecture received little notice, it was ignored in Roland Clark’s watershed biography on Einstein published in 1971, and so the 20th and early 21st centuries evolved in such a way to dismiss entirely ether theory.

http://www.newdawnmagazine.com/articles/tesla-vs-einstein-the-ether-the-...

Illustrating that what's in the question is only as good as knowing what has been omitted.

Tue, 05/06/2014 - 17:19 | 4733626 fonzannoon
fonzannoon's picture

yes yes attractive valuations...yes tell me more....

Tue, 05/06/2014 - 17:23 | 4733633 prains
prains's picture

By driving deposit rates down to below the rate of genuine real world inflation, investors are effectively forced to take on much more price risk than they might otherwise choose

 

why choose at all? loss to inflation over time is better than loss of everything when the reset hits! Gold meh, maybe if it's portable enough......gold hoarding although a wise choice is also a defacto shelter in place choice if the weight is a burden

Tue, 05/06/2014 - 17:43 | 4733716 TruthTalker
TruthTalker's picture

Gold/silver should be hidden in several small caches - this way you can move if needed and not have it be an issue -

Tue, 05/06/2014 - 17:47 | 4733732 eclectic syncretist
eclectic syncretist's picture

Bond, stocks, and housing are all in one ginormous Fed QE induced credit bubble that seriously looks to have reached the limits of possible expansion.  So if you have to run from them, where do you go?  I'm in PMs.  Whether the credit sloshes over into them or not they are the ultimate safe haven from counterfeit, corruption, and fraud, and that is what I want now more than anything.

Tue, 05/06/2014 - 17:50 | 4733742 G.O.O.D
G.O.O.D's picture

i think we should just eat more pussy and everything would work out.

Tue, 05/06/2014 - 17:20 | 4733630 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Thanks for telling me nothing!

Tue, 05/06/2014 - 17:22 | 4733635 fonzannoon
fonzannoon's picture

That's what I said.

Tue, 05/06/2014 - 18:21 | 4733860 Pure Evil
Pure Evil's picture

Invest in oxygen and sunshine.

Something very few can live without.

#winning

That and toe jam. Everyone needs toe jam.

Tue, 05/06/2014 - 19:18 | 4734038 No Quarter
No Quarter's picture

Yes, but if you follow Goods recommendation in tandem, oxygen may be an issue- Long snorkels.

Tue, 05/06/2014 - 17:22 | 4733638 Postal
Postal's picture

Moar!

Keep the party going just a little longer. I need more supplies...

Tue, 05/06/2014 - 17:23 | 4733639 yellencrash
yellencrash's picture

Simple question: where do I want to be when the dollar becomes the final bubble?

Tue, 05/06/2014 - 17:27 | 4733662 negative rates
negative rates's picture

Death by a thousand bubbles.

Tue, 05/06/2014 - 17:49 | 4733736 eclectic syncretist
eclectic syncretist's picture

Going short the dollar from a remote island in the south pacific?

Tue, 05/06/2014 - 17:52 | 4733752 G.O.O.D
G.O.O.D's picture

Loads of corn starch and a fvke me silly: http://www.amazon.com/PD-Pdx-Me-Silly/dp/B004PALRNA

Tue, 05/06/2014 - 17:23 | 4733640 denverdolomte
denverdolomte's picture

"It doesn't matter how beautiful your theory is, it doesn't matter how smart you are. If it doesn't agree with experiment, it's wrong."

~ Richard Feynman

Tue, 05/06/2014 - 17:25 | 4733649 The Abstraction...
The Abstraction of Justice's picture

If you want to build a bridge, use Newtonian mechanics, and don't worry whether its truth or not.

 

~ Me, just.

Tue, 05/06/2014 - 17:35 | 4733693 James_Cole
James_Cole's picture

If you want to build a bridge, use Newtonian mechanics, and don't worry whether its truth or not.

lol

To be fair to newton it may not be everything but its got a bunch of truth in it

Tue, 05/06/2014 - 19:47 | 4734117 bonin006
bonin006's picture

don't need no stinkin quantum mechanics to build a bridge

Tue, 05/06/2014 - 21:29 | 4734456 Matt
Matt's picture

I don't think Newton knew about harmonic resonance or aeroelastic flutter.

Tue, 05/06/2014 - 17:38 | 4733698 The Magus
The Magus's picture

Unless the experiment is flawed.

~ The Magus

Tue, 05/06/2014 - 17:45 | 4733723 denverdolomte
denverdolomte's picture

I'm going to go ahead and wager all money on this experiment being borderline retardedly flawed haha. 

Tue, 05/06/2014 - 17:23 | 4733641 lordbyroniv
lordbyroniv's picture

BITCOIN?

Tue, 05/06/2014 - 17:27 | 4733660 DoChenRollingBearing
DoChenRollingBearing's picture

A: Bitcoin is FAST!

Tue, 05/06/2014 - 19:51 | 4734129 acetinker
acetinker's picture

Frankenstien doesn't scare me- marsupials do.  You know why?  'Cause they're fast.

-Christopher Walken

Tue, 05/06/2014 - 17:33 | 4733683 Gandalf6900
Gandalf6900's picture

Gold

Silver

Land

Water

Bitcoin

 

Tue, 05/06/2014 - 21:36 | 4734471 Matt
Matt's picture

If you're going with order of priority, I'd go with:

#1 drinkable Water

#2: long-lasting food supplies

#3: ability to purify water

#4 ability to produce food

#5 trade goods

# 6 Cash

#7 ability to produce heat or electricity

#8 gold

#9 silver

#10 bitcoin

#11 Treasuries

#12 cash in bank

 

PS: 7.5 abilitiy to provide a useful skill/service for trade.

PPS: 4.5 arms to defend family and assets. 8.5: analog radio equipment.

Tue, 05/06/2014 - 17:40 | 4733684 TruthTalker
TruthTalker's picture

Better question - how long until the dollar collapses and can I get my money converted to hard assets in time.

Tue, 05/06/2014 - 17:42 | 4733709 Bernoulli
Bernoulli's picture

my guess: should be still possible within a couple of days after the major equity correction. Hopefully...

Tue, 05/06/2014 - 18:09 | 4733827 DoChenRollingBearing
DoChenRollingBearing's picture

Yes, math guy Bernoulli, a couple of days seems about right.  But I would work very fast, not tarry for 47 hours...  Gold, water, last gasoline ASAP.

Tue, 05/06/2014 - 21:39 | 4734484 Matt
Matt's picture

If you have a carborated old propane truck and generator set, you could use wood gas to power the truck and generator. Care of FEMA:

http://www.build-a-gasifier.com/PDF/FEMA_emergency_gasifier.pdf

Tue, 05/06/2014 - 19:23 | 4734054 No Quarter
No Quarter's picture

The answer is who the fuck knows, probably sooner rather than later, and No.

 It has seemed like the top is almost here for so long and it still hasn't happned yet. By the time any of us peons really know, it has already come and gone. Probably enough time to supply-up if you're quick. Hard asset conversion, not too likely.

Tue, 05/06/2014 - 17:38 | 4733700 All_Your_Base
All_Your_Base's picture

Q: How many calories are in an iPhone?

Tue, 05/06/2014 - 17:44 | 4733715 Bernoulli
Bernoulli's picture

A: Depends on what kind of Apps you have.

 

Tue, 05/06/2014 - 17:47 | 4733730 buzzsaw99
buzzsaw99's picture

einstein's unified field theory = fail because gravity has been repealed bitchez

Tue, 05/06/2014 - 17:51 | 4733746 unicorn
unicorn's picture

what do we want to achieve with our capital in the first place ?
dont waste your time, wrong question
the real things are not about capital in the end

Tue, 05/06/2014 - 17:51 | 4733749 Seize Mars
Seize Mars's picture

Einstein: another on a looooong line of 20th century frauds.
Relativity is wrong and all his other stuff is undergraduate-level idiocy.

Tue, 05/06/2014 - 17:52 | 4733756 honestann
honestann's picture

If I had an hour to solve a problem and my life depended on it, I would use the first 55 minutes determining the proper question to ask, for once I knew the proper question, I could solve the problem in less than five minutes.

Very true, but even more than that.  To formulate the question effectively, the first step is to remove all fictions and false premises from the topic.  Once that is done, something like 99.999% of all questions reduce to the same simple question.

Obvious example: every "government", every "corporation", every "organization", every "authority", every "nation", every "official", every "law, statute, regulation"... are FICTIONS.  They flat-out do not exist.

What does exist, in all these [and many other] cases are... human predators, human parasites, human producers, human prey... and their actions.

Once an individual reduces the 47-billion supposedly separate "topics" or "questions" that are in fact this one "topic" or "question", an answer can be formulated (even if unpleasant).  Typically the answer is one of a few choices, namely "obey and be harmed, enslaved, dominated and ultimately destroyed", "evade and be free (but be careful)", "fight back (but be super-duper thoughtful and careful before you act)".

It truly is amazing how many utterly pointless topics people struggle to understand.  Like the dozen or more forms of slavery that people call "monarchy", "fascism", "socialism", "communism", "democracy", "[constitutional] republic", and so forth.  The only real question and answer?  Do you control your life, time, mind, body and property... or do others?  The rest is so nitpick as to be irrelevant.

Einstein was a smart dude, largely because he was better at drilling down to fundamentals.  Nonetheless, even his greatest shortcoming was not going far enough sometimes (or not openly admitting what he recognized).

Tue, 05/06/2014 - 17:58 | 4733786 G.O.O.D
G.O.O.D's picture

But how do we get endless growth from this planet? That is the big question, and someone better figure it out pdq or there is going to be a shitload of bodies littering the landscape.

Tue, 05/06/2014 - 18:04 | 4733810 honestann
honestann's picture

We don't.  But be careful with terms like "endless".  The problem today is a lack of quality (in how humans treat the environment and each other), not quantity.  The problem is not that some people don't know how to create a good, healthy, benevolent world.

The problem is, predators-DBA-government and predators-DBA-corporations control everything and almost everyone, and they don't give a damn about how much disaster they cause, as long as they can shift the consequences of their actions onto others (at which they are masters).

Tue, 05/06/2014 - 21:19 | 4734421 bsdetector
bsdetector's picture

I like your thoughts HA. I'll watch for more.

Tue, 05/06/2014 - 17:54 | 4733765 Itchy and Scratchy
Itchy and Scratchy's picture

I thought Einstein invented quantitaive easing?

Tue, 05/06/2014 - 18:40 | 4733924 edotabin
edotabin's picture

fed=$1999999999999999999999999999999999999999999999999999999999999999999999999999

Tue, 05/06/2014 - 18:32 | 4733894 Wahooo
Wahooo's picture

In today's rational markets, the only question one needs to answer is this: If a canoe tipped over in your yard and all four wheels fell off, how long would it take a monkey with a wooden leg to pick up all the seeds with a pickle?

Tue, 05/06/2014 - 18:32 | 4733899 DOGGONE
DOGGONE's picture

Would Einstein dare to touch this sociology?

"The Public Be Suckered"
http://patrick.net/forum/?p=1230886

Tue, 05/06/2014 - 18:48 | 4733953 A Cruel Accountant
A Cruel Accountant's picture

If you want  a low risk investment pay off your mortgage!

Tue, 05/06/2014 - 19:20 | 4734048 RichardParker
RichardParker's picture

Einstein's theories predict how the universe is expanding. I believe it is expanding faster and faster over time. ( I passed rhree semesters of physics in college by rhe skin of my teeth.

Currently, I am working on the Richard Parker theory.  Government is constantly expanding and over time it is expanding faster and faster...

Tue, 05/06/2014 - 19:57 | 4734146 I Write Code
I Write Code's picture

Axe me no questions I'll tell you no lies.

Tue, 05/06/2014 - 20:51 | 4734312 lakecity55
lakecity55's picture

$=fedc2

Tue, 05/06/2014 - 21:04 | 4734363 Who was that ma...
Who was that masked man's picture

If I had an hour to solve a problem and my life depended on it, I'd probably go out and buy an ounce of coke and a couple of good hookers.  Problem?

Tue, 05/06/2014 - 22:40 | 4734678 james.connolly
james.connolly's picture

Today Simon Black went to the HO-HOUSE, Tim Price didn't,

Sovereign Man my ass,

What is 'Sovereign' about this name dropping shit?

>>

Science is easy, based on observation, and tested theory, and provable knowns.

All social science is based on 'winner' ( murder ) historical narrative, ... Democracy, stock-market, its all mythology; The 'right' questions can't even be asked, because the entire narrative is FICTION.

Comparing scientific discovery with FICTIONAL ANALSIS is 100% bullshit, and only shows that Simon Black/Tim Price have no knowledge of 'physical science'.

Lastly, Einstein said "If I hadn't been a physicist, I would have been a musician", another area where you deal in truth, .. beauty to the ear is a universal truth.

But "economics" is DISMAL for a reason, its 100% BULLSHIT.

 

Tue, 05/06/2014 - 22:13 | 4734589 james.connolly
james.connolly's picture

Preservation is/was always important,

What is the point of a 50% ROI, when you lose 100% of capital?

All the rich men in history said, "Making money is easy, keeping it is hard"

Sir Issac Newton himself smarter than einstein lost his fortune in the bubbles at his time, an he went on to reflect, "Being the smartest man on earth, didn't prevent him from being pulled into the PONZI".

>>

Keeping your money SAFE from the gubmint has always the been the trickiest game on earth.

Tue, 05/06/2014 - 22:25 | 4734626 Kirk2NCC1701
Kirk2NCC1701's picture

When asked what he thought was the greatest invention of the 29th Century, Einstein answered: "Compound Interest".

For those who do not have a background in math, physics or engineering, his (unspoken) implication was... You cannot create something out of nothing in the natural world, yet Compound Interest does just that for practitioners of Usury.

Funny how the MSM or social media never quotes that.

Wed, 05/07/2014 - 01:51 | 4735040 Mr. Delicious
Mr. Delicious's picture

The best question to ask these days is generally "who benefits?"

 

Wed, 05/07/2014 - 06:04 | 4735221 AdvancingTime
AdvancingTime's picture

Few people ready understand the economy. The study of economics is often baffling and confusing. Many economic theories exist but many are full of holes and conundrums. Much of how people react to a policy may have to do with timing and perception instead of reality. Economics is full of loops that feed back upon themselves and unexpected pitfalls based on expectations.

All this can become quite abstract. Economist predict events that never tend to unfold as expected or planned. Many of the "modern monetary theories" in use today have not been proven over time, but reflect an attitude that we can control  economic cycles better than in the past. We shall soon see if that is indeed true. More on this subject in the article below.

http://brucewilds.blogspot.com/2014/03/few-people-really-understand-econ...

Do NOT follow this link or you will be banned from the site!