Why Albert Einstein Thought We Were All Insane

Authored by Simon Black via SovereignMan.com,

In the early summer of 1914, Albert Einstein was about to start a prestigious new job as Director of the Kaiser Wilhelm Institute for Physics.

The position was a big deal for the 35-year old Einstein– confirmation that he was one of the leading scientific minds in the world. And he was excited about what he would be able to achieve there.

But within weeks of Einstein’s arrival, the German government canceled plans for the Institute; World War I had broken out, and all of Europe was gearing up for one of the bloodiest conflicts in human history.

The impact of the Great War was immeasurable.

It cost the lives of 10 million people. It bankrupted entire nations.

The war ripped two major European powers off the map– the Austro Hungarian Empire, and the Ottoman Empire– and deposited them in the garbage can of history.

Austria-Hungary in particular boasted the second largest land mass in Europe, the third highest population, and one of the biggest economies. Plus it was a leading manufacturer of high-tech machinery.

Yet by the end of the war it would no longer exist.

World War I also played a major role in the emergence of communism in Russia through the 1917 Bolshevik revolution.

Plus it was also a critical factor in the astonishing rise of the Nazi party in Germany.

Without the Great War, Adolf Hitler would have been an obscure Austrian vagabond, and our world would be an entirely different place.

One of the most bizarre things about World War I was how predictable it was.

Tensions had been building in Europe for years, and the threat of war was deemed so likely that most major governments invested heavily in detailed war plans.

The most famous was Germany’s “Schlieffen Plan”, a military offensive strategy named after its architect, Count Alfred von Schlieffen.

To describe the Schlieffen Plan as “comprehensive” is a massive understatement.

As AJP describes in his book War by Timetable, the Schlieffen Plan called for rapidly moving hundreds of thousands of soldiers to the front lines, plus food, equipment, horses, munitions, and other critical supplies, all in a matter of DAYS.

Tens of thousands of trains were criss-crossing Europe during the mobilization, and as you can imagine, all the trains had to run precisely on time.

A train that was even a minute early or a minute late would cause a chain reaction to the rest of the plan, affecting the time tables of other trains and other troop movements.

In short, there was no room for error.

In many respects the Schlieffen Plan is still with us to this day– not with regards to war, but for monetary policy.

Like the German General Staff more than a century ago, modern central bankers concoct the most complicated, elaborate plans to engineer economic victory.

Their success depends on being able to precisely control the [sometimes irrational] behavior of hundreds of millions of consumers, millions of businesses, dozens of foreign nations, and trillions of dollars of capital.

And just like the obtusely complex war plans from 1914, central bank policy requires that all the trains run on time. There is no room for error.

This is nuts. Economies are comprised of billions of moving pieces that are beyond anyone’s control and often have competing interests.

A government that’s $21 trillion in debt requires cheap money (i.e. low interest rates) to stay afloat.

Yet low interest rates are severely punishing for savers, retirees, and pension funds (including Social Security) because they’re unable to generate a sufficient rate of return to meet their needs.

Low interest rates are great for capital intensive businesses that need to borrow money. But they also create dangerous asset bubbles and can eventually cause a painful rise in inflation.

Raise interest rates too high, however, and it could bankrupt debtors and throw the economy into a tailspin.

Like I said, there’s no room for error– they have to find the perfect balance between growth and inflation.

Hedge fund billionaire Ray Dalio summed it up perfectly last month when he said,

“It becomes more and more difficult to balance those things as time goes on. . . It may not be a problem in the next year or two, but the risk of not getting it right increases with time.”

Today there’s a changing of the guard at the Federal Reserve– Janet Yellen is leaving her post as chair, and she’s being succeeded by Jerome Powell.

Yellen leaves her post having brought down the unemployment rate in the United States to 4.2%, which certainly sounds nice.

Yet at the same time, workers’ wages (when adjusted for inflation) have hardly budged under her tenure.

Americans’ savings rate has been cut in half. Consumer debt and student loans are at all-time highs.

And dangerous asset bubbles have expanded, from stocks to bonds to property.

The risk of them getting it wrong is clearly growing.

That’s why having your own Plan B is so important.

It’s a simple concept: don’t keep all of your eggs in one basket, especially when the people who control the basket have such a tiny margin of error.

The right Plan B makes sense no matter what happens, or doesn’t happen, next. If they get it right, you won’t be worse off. But if they get it wrong, you’ll still prosper.

I truly hope they don’t get it wrong.

But if they ever do, people may finally look back and wonder how we could have been so foolish to hand total control of our economy over to an unelected committee of bureaucrats with a mediocre track record... and then expect them to get it right forever.

It’s pretty insane when you think about it.

As Einstein quipped at the height of World War I in 1917, “What a pity we don’t live on Mars so that we could observe the futile activities of human beings only through a telescope. . .”

*  * *

And to continue learning how to ensure you thrive no matter what happens next in the world, I encourage you to download our free Perfect Plan B Guide.

Comments

Endgame Napoleon Hotapplebottoms Sat, 02/03/2018 - 09:14 Permalink

Well, it is a horrific system of weaponry, but without it, we would have lived under the boot of 1) fascist Germany or 2) imperialist Japan. Germany produced some of the greatest classical composers. Japan has an intricate and artistic culture of perfectionism. If you have ever read about how the Japanese treated American soldiers, you, as an American, would not want to live under their dictatorial rule. They did not, either, hence the transformation of Japan after WWII. 

In reply to by Hotapplebottoms

paperstreetsoapco Endgame Napoleon Sat, 02/03/2018 - 10:50 Permalink

That is a lie.  The zip general himself admitted that it would be impossible to invade mainland America because, "behind every blade of grass is a rifle".

Edit:  by this time, Hitler was "dead" and Germany was already under US occupation.  The 3rd Reich was defeated.

The use of the atom bomb was a tyrannical show of force.  We could have encircled Japan and waited them out.

 

But the tyrannical USA had to use their new toy on someone, in attempt to build the empire.

 

You live in the Fourth Reich.

In reply to by Endgame Napoleon

U. Sinclair paperstreetsoapco Sat, 02/03/2018 - 12:57 Permalink

But you forget one thing.
The whole world was tired of fighting and wanted things to come to an end.
Japan was warned before but their emperor couldn't care less.
They finished it without having to risk further loss of American lives.
Most of us would probably have made the same choice at that time.
Horrible for the Japanse people but they can only blame their foolish emperor who shouldn't be involved in the first place.

In reply to by paperstreetsoapco

el buitre paperstreetsoapco Sat, 02/03/2018 - 17:26 Permalink

Hitler died in bed in Argentina in the 60's.  Eva Braun outlived him by quite a bit.  I lived for a year recently outside of Cordoba, and that is common knowledge there.  The burnt skull found in the famous bunker turned out, upon testing, to be that of a woman.  Martin Bormann became the de facto  leader of the NAZI's after Germany's surrender.  He  became so intrepid by the 60's that he actually started to write multi million dollar checks on his Deutsche Bank account under his own name.  Joseph Farrell describes him as Dick Cheney without the warmth.  The USA made a deal with the top Nazi leadership to leave them alone in Argentina and Chile in exchange for a lot of highly enriched uranium used to build Little Boy, delivered by submarine.  The Manhattan Project had used up all its weapons grade U235 for the Trinity Test.  Conventional history is bullshit.

In reply to by paperstreetsoapco

booboo stizazz Fri, 02/02/2018 - 22:14 Permalink

Ever read any of his non scientific writings? He thought the world should be run by a small committee of "great mind", yea, this was while a small committee of Soviets and Chinese were killing 150 million of it's own citizens. The guy was good with math but dumb as fuck when it came to everything else.

In reply to by stizazz

zippedydoodah stizazz Fri, 02/02/2018 - 23:01 Permalink

"What a pity we don’t live on Mars so that we could observe the futile activities of human beings only through a telescope."

Simon, Sovereign Man, I have a lot of respect for your regular posts and I am subscribed to your website. I receive your emails regularly and I always enjoy reading them.

On this occasion you have stretched the truth too far.

Einstein never stated that "We are all insane". I would however happily be corrected by you.

 

In reply to by stizazz

el buitre Ace006 Sat, 02/03/2018 - 17:51 Permalink

E=hf (where f is usually written as the small Greek letter v (nu)) was an explanation of the newly noticed photoelectric effect where electrons were emitted from metals bombarded with light or x-rays of certain wave lengths.  He had a banner year in 1905 with his special relativity, photoelectric effect, Brownian motion, and his mass-energy equivalence papers.  All in one year.  As to not being much of a mathematician by world standards, he never really claimed to be.  Physics is not just math though math is an essential component.  However, IMO, his contemporary, Nikola Tesla will prove in retrospect to be the far greater genius. But to answer your question, Einstein actually derived E=mc2 theoretically through a "thought experiment," and unlike the photon energy / wavelength equation, it was not based on an explanation of empirical data until after its publication.

In reply to by Ace006

Stan Smith Fri, 02/02/2018 - 21:12 Permalink

    It certainly does seem that after a decade plus (or even more really) that leaving Central Bankers to flood the market with currency that gets less valuable every time you print the next one it appears folks are noticing that it MIGHT have not been the wisest of choices.

Endgame Napoleon Stan Smith Sat, 02/03/2018 - 09:31 Permalink

True. Though it looks like their crypto solution has some holes, however perfectly constructed the system is, with its mathematical limit of 21 million coins.

It seems like money is as hard to control as squirmy, irrational humans, which was the subject of the article. Business is irrational.

Brainy, mathematical people in finance think retail is nothing—just a bunch of fussy women in little shops. Put those rational-thinking brainiacs in a Main Street shop, competing with big-box stores getting volume discounts on Made-in-China products and far too many competitors who are just doing it to supplement retirement or spousal income, trying to make an actual living off of deciding which items items the fickle, unpredictable public will buy.

Thank God, I had a custom business, not that it ever made much money, but I saw people who were majorly successful in other businesses that sound much harder — multi-million-dollar businesses — fail totally in mom-and-pop / brick-and-mortar retail businesses.

When not in a custom business, they must be much more accurate in predicting what unpredictable humans will buy, because unlike the volume sellers, they do not get bulk discounts and cannot make up the losses on items that don’t sell in clearance racks and outlet stores across multiple locations. 

In reply to by Stan Smith

Billy the Poet LetThemEatRand Fri, 02/02/2018 - 23:03 Permalink

Tell me why you disagree with the Ayn Rand quote below and which specific parts you find amusing:

 

 

"The citizens of a free nation may disagree about the specific legal procedures or methods of implementing their rights (which is a complex problem, the province of political science and of the philosophy of law), but they agree on the basic principle to be implemented: the principle of individual rights. When a country’s constitution places individual rights outside the reach of public authorities, the sphere of political power is severely delimited—and thus the citizens may, safely and properly, agree to abide by the decisions of a majority vote in this delimited sphere. The lives and property of minorities or dissenters are not at stake, are not subject to vote and are not endangered by any majority decision; no man or group holds a blank check on power over others."

In reply to by LetThemEatRand

Billy the Poet LetThemEatRand Fri, 02/02/2018 - 23:53 Permalink

I agree about Rand. Despite being an Atlas fan I fall more in line with Rothbard's view of government than with Rand's.

 

 

New Banner: In the no. 7 issue of the Ayn Rand Letter, Miss Rand admonishes her readers, “Do not join ... libertarian hippies who subordinate reason to whims and substitute anarchism for capitalism.” Do you think that this remark was directed at you and other advocates of free market alternatives to government institutions, and do you think this remark is in keeping with Miss Rand’s oft-stated principle of “defining your terms”?

Rothbard: Well, it’s hard to say, because you notice there are very few specific facts in her discussion. There is one sentence covering “libertarian hippies.” Who are they? Where are they?

The movement that I’m in favor of is a movement of libertarians who do not substitute whim for reason. Now some of them do, obviously, and I’m against that. I’m in favor of reason over whim. As far as I’m concerned, and I think the rest of the movement, too, we are anarcho-capitalists. In other words, we believe that capitalism is the fullest expression of anarchism, and anarchism is the fullest expression of capitalism. Not only are they compatible, but you can’t really have one without the other. True anarchism will be capitalism, and true capitalism will be anarchism.

 

https://mises.org/library/rothbard-reader/html/c/369

In reply to by LetThemEatRand

MK ULTRA Alpha HRClinton Sat, 02/03/2018 - 00:44 Permalink

Einstein's daughter ordered the letter's between her and Einstein released 20 years after her death. There was a book released at the time, about ten or so years back.

I read it, then I had to read it again, then I still couldn't believe what I was reading. I read it three times. The book written by a Jew used the letters to explain Einstein's life.

Einstein stole the law of relativity from German Mathematician Hilbert. He was one of the most famous and brilliant Mathematician in history.

At the time, I wondered if anyone else knew what I now knew. It took four years before people began to speak out about it. There was more books about it.

Then wiki changed it from Einstein to the Einstein Hilbert law of relativity. That was for about five years after I first read the book, and then something happened. There were publication of photo magazines with Einstein's photo on the cover in all grocery stores. A full scale offensive from NYC was in motion to reinstate Einstein without giving credit to Hilbert. The idea of Hilbert being the one who discovered the laws of relativity was completely removed from the American mind,

I did much more study, Einstein came to the US at Princeton University, he never discovered anything and nothing he did made sense to anyone, but no one questioned the slick media campaign used by the Jews to promote Jewish superiority and in became a wedge issue for greater Jewish immigration to the US, before the change, Jews were limited by immigration quota.

Einstein's photo pumped into the minds of an agriculture based culture that didn't know any better. I am surprised the avid readers on here wouldn't have known the truth about Einstein and wrote it, but what do we get, the brainwashed minds of the ZH board parroting their programming.

I'm sorry for you that you live a lie, but Hilbert discovered the laws of relativity, Einstein wrote Hilbert, Hilbert wrote you're way off and invited Einstein to his office. On the board was the law of relativity, Einstein copied and took it to the patent office and claimed ownership.

Einstein was another Jewish hoax. And the Jews have a vested interest in brainwashing the Americans of this lie, for Jewish political reasons.

In reply to by HRClinton

synthetically … MK ULTRA Alpha Sat, 02/03/2018 - 17:38 Permalink

Please be so good as to provide a link to support your bald claim.

I note that I was not successful in finding a transcript of the letter that you described in your post, but I did run across the following remark (updated Mar 10, 2017) on Quora.com by Miguel Gonzalez (of the University of Chile), albeit one that is at odds with your claim:

"The real steal was made by Hilbert on Einstein['s General Relativity] work (God's Equation: Einstein, Relativity, and the Expanding Universe: Amir D. Aczel: 9780385334853: Amazon.com: Books pp. 133 or Science Vol. 278, 14 November 1997)

[... The] first Hilbert work was done after attending Einstein lectures on [General Relativity] ..."

 

https://  www.quora.com/  Did-Albert-Einstein-steal-the-work-on-relativity-from-his-wife?

 

 

 

 

In reply to by MK ULTRA Alpha

sixsigma cygnu… LetThemEatRand Fri, 02/02/2018 - 21:28 Permalink

To understand politics, one must understand prostitution. 

One day the prostitutes decide to hire some guy to defend them from the johns that rip them off.  So they hire a pimp and he does his job very well, no one is ripping off the whores anymore.  However, exactly 3 minutes later, the pimp is beating up the prostitutes when they don't hand over all their money forever.  In essence, that is how .gov works.

In reply to by LetThemEatRand

nsurf9 Fri, 02/02/2018 - 21:24 Permalink

A bit like letting the boys at the frat party control the punch, the grain alcohol - and you get to pay the cover charge for Hawaiian virgin punch.

I just get a kick watching Tom Selleck on the reverse-mortgage TV commercial state that some elders "just didn't save enough."  I'm not sure whether he's ignorant, greedy, or just an a$$hole.