Ordonnance-Economics: "We have a loss as well as a profit economy," William McChesney Martin Jr., Federal Reserve Chairman, 1951 - 1970

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   Background 
 
I have engaged in equity investing since 1974.  This provides me with some degree of perspective and experience.  Economic works [Adam Smith; Ludwig von Mises; Milton Friedman; Robert Mundell; Joseph Schumpeter; John Maynard Keynes; Friedrich von Hayek; William H. Hutt; Hyman P. Minsky; Paul Samuelson; etc.and other investment readings provide the balance of my knowledge.  I claim no extraordinary skill, wonderous methodology or unique, intuitive insight into the workings of the Market. But these will give you a sense of my operating principles   For details see:
 
Guidelines to Investing 
         
Investing Formulae
    
Portfolio   
 
Investing Outlook
 
 
There is probably not enough sizzle here for most of you.  Might I suggest you search elsewhere for the latest, hot-money guru [the momentum-pusher, Michael J. Parness; or the stock tout, Jim Cramer (Bolster & Trahan of Northeastern University describe his results thus: "Overall, the results suggest that, while Cramer may be entertaining and mesmerizing to many of his viewers, his aggregate or average stock recommendations are neither extraordinarily good nor unusually bad,"  http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1407081) or, the vacuous Phil Grande or, Suze Orman + Mark Grimaldi when they provide specific, investment recommendations; other names from the past are:  Stan Weinstein, Elaine Garzarelli, Robert Prechter, and Joe Granville];
their ads and come-on's are everywhere; or, examine the stock history for the Blackstone Group - BX or, Fortress Investment - FIG or, KKR & Co.LP - KKR (formerly KKR Private Equity Investors; listed as KPE.AS and KKR.NX; now KKR on the NYSE at a debut quote of $10.50 - 07/15/10).  Or the Groupon Inc. IPO (11/03/11) at $20... GRPN is now at $19.27 on 1/03/12.
 
Still want to venture into the high-flying areas of finance?  But let us not forget: the dot-com bubble; the tech bubble; the mortgage bubble; the private equity/hedge funds bubble; the commodities bubble; Wall Street investment houses; the TBTF banks; and of course Bernie Madoff... the poster boy for diversification [and if you're old enough you remember  Bernie Cornfeld, Investors Overseas Services; "Do You Sincerely Want to Be Rich?"; later looted by Robert Vesco].  And of course the Niffty Fifty of the 1960s and 1970s and any stock with "onics" in the name.  Later to be any stock with dot-com in the name.  Who knows what will be the next-big-thing 'investment'.
                                  

“If speculators could find unlimited credit,

one can’t tell what crises would ensue.”

Baron James de Rothschild  -  1867

 

 
Most of my stocks are covered by: ValueLine; Morningstar; Standard & Poors;  buy-side research/institution & sell-side research/brokerage; etc.  It might be best for most persons to simply put half of their capital in a S&P500 Index Fund and the balance into income producing issues. Note that yiel
and  price move inversely; refer to link below:
                                                http://www.investopedia.com/ask/answers/04/031904.asp.
 
 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
 
 

Proverbs Applicable to Investing

 

A Stich In Time Saves Nine

 

Don't Count Your Chickens Before They Hatch

 

When Fortune Comes... Save Half

 

A Bird in the Hand is Worth Two in the Bush

 

Don't Burn Your Bridges Behind You

 

Waste Not... Want Not

 

A Penny Saved

Is a

Penny Earned

 

"I'll gladly pay you Tuesday...

for a hamburger today."

 Wimpy  -  Popeye cartoon or,

a banker or hedge fund manager

 

There Are  NO  Free Lunches

 

If It Sounds Too Good to Be True...

It Usually Is

Better Business Bureau

 

Fair Exchange is No Robbery

 

Fool me once... shame on you

Fool me twice... shame on me

 

He Who Pays the Piper... Calls the Tune

 

The Enemy of Better is Best

 

ceteris paribas

 

Make Hay While the Sun Shines

 

He Who Hesitates is Lost

 

Strike While the Iron is Hot

 

Don't Put the Cart Before the Horse

 

There is Many a Slip Twixt the Cup and the Lip

 

What One Fool Can Do

Another Can

 

Don't Cry Over Spilt Milk

 

Penny Wise, Pound Foolish

 

The Atlantic is Smaller than the Pacific,

but They're Both Pretty Big Oceans

 

Haste Makes Waste

 

Where There's a Will, There's a Way

 

The Mind Finds Reasons For the Hearts Desires

 

What's Sauce For the Goose is Sauce For the Gander

 

An Ounce of Prevention is Worth a Pound of Cure

 

Honesty Is the Best Policy

Adam Smith

 

Forewarned is Forearmed

 

When It Rains... It Pours

 

Any Port In a Storm

 

Hind-sight is Always Twenty-twenty

 

Half a Loaf is Better Than No Bread

 

In For a Penny, In For a Pound

 

A Fool and His Money are Soon Parted

 

"It May Be the Cock That Crows,

but It Is the Hen That Lays the Eggs"

Margaret  Thatcher

 

Money Doesn't Grow On Trees

 

If Wishes Were Horses Beggars Would Ride

 

All That Glisters Is Not Gold

 

In the Short-Term the Market is a

Voting-machine...

In the Long-Run the Market is a

Weighing-machine

 

Nothing Ventured, Nothing Gained

 

Don't Kill the Goose That

Lays the Golden Eggs

 

Bad Money Drives Out Good

 

Don't Judge a Book By Its Cover

 

The Proof of the Pudding Is In the Eating

 

Enough is Enough

 

A Word to the Wise is Sufficient

 

Beware of Greeks Bearing Gifts

 

Better Safe Than Sorry

 

 


To be ideological is
"to preconceive reality."
          
Irving Kristol    1920 - 2009
 
 
 
 Ideology is not thought .....
                                        it is a substitute for thought
 
 
 
"For me, pragmatism is not enough.
Nor is that fashionable word "consensus."
To me consensus seems to be the process
of abandoning all beliefs, principles, values,
and policies in search of something in which
no one believes, but to which no one objects.
        
The process of avoiding the very issues that
have to be solved, merely because you cannot
get agreement on the way ahead.  What great
cause would have been fought and won under
the banner, I stand for consensus?"
  
Margaret Thatcher  -  1981
 
 

“In politics the middle way is none at all.”

 

John Adams

 

 

The Ideologist knows only: The One Answer...

the Rationalist knows only straight lines.

W.A.E.

 
 
"What is an intellectual?
An intellectual is somebody
who thinks ideas are
more important than people."
 
Paul Johnson  -  historian
 

 

"Socialism is a philosophy of failure,

the creed of ignorance,

and the gospel of envy,

its inherent virtue is

the equal sharing of misery..."

 

Winston Churchill

 
 

 
Don't make the river run up-hill
 
 
Union leaders need to realize that
Frederick W. Taylor
is dead.
 
 
"When school children start paying union dues,
that's when I'll start representing
the interests of school children."
 
Albert Shanker, former head of the
American Federation of Teachers
 
 

“Half the harm that is done in this world

is due to people who want to feel important.

They don’t mean to do harm

but the harm does not interest them.”

 

T.S.Eliot

 

 
 

“Each new generation born is in effect an invasion

by little barbarians,

who must be civilized

before it is too late.”

 

Thomas  Sowell

 
 

“Any scientist who is not a skeptic

is a mere politician.”

 

Lord Monckton  -  2007

 

 

"We both conceal and disguise ourselves

from ourselves."

 

Pascal

 

 

"The simple truth is

that our businessmen do not want

a government that will let business alone.

They want a government that

they can use."

 

Albert Jay Nock

August 28, 1938

 

 

              How many legs does a dog have

                   if you call the tail a leg?

                             Four.

              Calling a tail a leg

                 doesn't make it a leg.

                                                   Abraham Lincoln

 


“Decision is choice in the face of

bounded uncertainty.”

 

Decision Order and Time by G.L.S. Shackle

 

 

 

"People only accept change in necessity

and see necessity

only in crisis."

 

Jean Monnet

 

 

  All ideas are not equal - WAE

 

 

 

Sergio Marchionne, CEO of Fiat (F.Italy), is Palmisano's (IBM CEO) friend. "Leadership is an incredibly complicated thing," Marchionne says. "The minute people try to pigeonhole and dissect it, you end up with nonsense. People need guidance and direction, and comfort that the size of the sandbox we're playing in is defined. Sam gives you the comfort of knowing that you are, in some part, in some fashion, part of the tribe. The tribe will protect you if you perform, and are faithful to the values of the house."

 

 

 

“Acts of valuation [preference] are not susceptible

to any kind of measurement.”

 

Ludwig von Mises

 

 

"...phoniness is what

holds a civil society together."

Andy Borowits, humorist

 

 

Any simple problem can be made unsolvable if

enough meetings are held to discuss it.

  

 

 

"The most incomprehensible thing about the universe is

that it's comprehensible."

 

Albert  Einstein

 

 

 


The Seven Base Units of Nature

 

Length .... metre

Mass .... kilogram

Time .... second

Electrical current .... ampere

Temperature .... kelvin

Luminous intensity .... candela

Amount of substance .... mole

 


 

"The dog is the wolf who stayed,

who traded wolf society

for human society."

 

Mark Derr

 

 


 

"There are two times in a man’s life

when he should not speculate:

when he can’t afford it,

and when he can.” - Mark Twain 

 

 

 

"Progress in thinking...

is progress towards

simplicity."

 

 Siegmund Warburg  -  financier

 

 

 

"The best way to get the government out of the

banking business is to keep the banking business 

out of the public's pocket."       

 Bill Taylor, director of Bank Supervision at the

Federal Reserve System

 

 


 

Wealth: Is It Worth It?

by Truett Cathy

founder of the Chick-fil-A

restaurant chain ($4 bil.sales in 2010)

 

Cathy explains his belief that wealth is “worth it” only if:

  

  • it is earned honestly               
  • spent wisely                             
  • saved responsibly                   

  • given generously   
    •  

       


       

      We learn to speak

      with no formal teaching...

          

      but we must be explicitly

      taught to read.

       

      (writing having come

      into existence about

      5,000 B.C.E.)

       


      "Do I contradict myself ?

      Very well then, I contradict myself.

      (I am large, and I contain multitudes)."

       

      Walt Whitman  -  Song of Myself  -  1855 

       

       

       

      "The recognition of something

      is the first act

      of the intellect."

       

      G.K.Chesterton

       

       

      "God created man with a penis and a brain

      and gave him only enough blood

      to run one at a time."

       

      Stephen Ambrose 

       

       

       


       Alea iacta est.

      That's what Julius Caesar proclaimed as he crossed the Rubicon River

      in 49 BC It means,

        

      "The die is cast."

       

      By crossing the Rubicon with his army--

      against Roman law--

      Caesar guaranteed a head-on conflict with

      the overconfident Roman ruler Pompey.

      Outnumbered, Caesar was presented with the choice:

      win or die.

       


        

      "A soldier will fight long and hard

      for a bit of colored ribbon."

       

      Napoleon Bonaparte

       

       

      “If I knew for a certain

      that a man was coming to my house

      with the conscious design

      of doing me good,

      I should run for my life.”

       

      Henry David Thoreau

       

       

       

      "...the chief business of the American people

      is business."

      address to the American Society of Newspaper Editors - 1/25/1925

      Calvin Coolidge, U.S. President, 1923 - 1929

       

       

       

      If governments were really excellent investors

      then the Soviet Union wouldn't have collasped 

      and Cuba would be rich.

       

       

       

      "of the many government functions,

      the most important is to facilitate

      commerce and help industries."

       

      statement by the Chinese government

      on April 22, 1903

       

       

       

      "Never ascribe to malice

      that which is adequately explained

      by incompetence."

         

      Napoleon  Bonaparte

       

       

      "No one ever got rich betting that politicians won't do a dumb thing."

      Alan Abelson - Barron's

       


       

      "The dose makes the poison." 

                   

      A sixteenth-century Swiss chemist named Paracelsus

      gave us the most basic rule of toxicology

       


       

       

       

      Law of Distinction

      Robert Benchley

       

      "There are two kinds of people in the world,

      those who believe there are two kinds of people in the world

      and those who don't."  

       

       

       

                            "When the facts change

                                 I change my mind.

                                   What do you do, sir."

                                                           

      J.M.Keynes

       

       

      "If you haven't got courage,

      all the other virtues are no good at all.

      It's the central virtue."

        

      Paul Johnson  -  historian 

       

       

      “In the short-run the Market is...

      a voting machine.

            

      In the long-run it is...

       a weighing machine.”

       

      Benjamin Graham

       

       

       

      "They may care for one another because

      they can think of one another"

       

      Michael Oakeshott

       

       

       

      "I soon found out that the Senate

      had but one fixed rule,

      subject to exceptions of course,

      which was to the effect that the Senate

      would do anything it wanted to do

      whenever it wanted to do it."

       

      Calvin Coolidge

       

       

      A 1991 survey by the Library of Congress and the

      Book-of-the-Month Club determined that

      Atlas Shrugged was the second-most-influential

      book in history behind the Bible.

       

       

      'The consumer is not a moron,

      she is your wife.

      You wouldn't lie to your wife.

      Don't lie to mine."

       

      David Ogilvy   -   Ogilvy & Mather

       

       

       

      “An iPod is sold at $299,

      and China in the manufacturing link

      will only get $6 for it.”

       

      Prime Minister of China, Wen Jiabao, 9/22/10

       

       

       

      A client called Frank Lloyd Wright on a

      rainy night to complain that water was

      dripping on him right where he sat.

      The great architect responded:

      "Why don't you move your chair

      a little bit to one side?"

       

       

       

      Over-indebtedness is most commonly started by,

       

      "new opportunities to invest at a

      big prospective profit,

      as compared with ordinary profits and interest...

      Easy money is the great cause of

      over-borrowing."

       

      "The Debt-Deflation Theory

      of Great Depressions"

        

      Irving Fisher

       Econometrica, p.348, 1933

       

       

       

      “Money is like a sixth sense

      without which you cannot make a complete use

      of the other five.”

       

      W. Somerset Maugham

       

        

       

      "Everything that makes up the value of life

      is curiously useless." 

       

      Paul  Valery

       


       

      Horton Hears a Who

      by Dr.Seuss

       

      "a person's a person

      no matter how small." 

       


       

      "In America, air conditioning is not simply

      a way of cooling down a room.

      It is an affirmation of supremacy."

       

      Beppe Severgnini

       


      The greater the precision of thought, the greater the unintelligibility. Ultimately, everything must be accredited

      by ourselves, over and over again, thru:

       

      * appetite [sense-perception] - 

             by personal satisfaction, private enjoyment 

                BODY / FEELINGS / EMOTIONS

       * personal endorsement [inlustration] -

             by reputation of and confidence in others 

                KNOWLEDGE / ETHICAL & MORAL CHARACTER / WISDOM 

       * mental excellence [reason] -

             by the integrity of our logic and thought

                    MIND / THINKING / JUDGMENTS

       


       

      "A society whose members were unable to distinguish truthful messages from deceptive ones would collapse."

       

      Sissela Bok

       

       

                           Hypocrisy is the compliment

                          that vice pays to virtue.

       

       

      “Believe those who are seeking the truth;

      doubt those who find it.”

       

      Andre Gide

       

       

      "It is doubtful that democracy could survive in a society organized on the principle of therapy

      rather than judgment, error rather than sin.

      If men are free and equal, they must be judged

      rather than hospitalized"    F.D.Wormuth

       

       

      The British elites persuaded themselves that their great crime was to impose bourgeois values on everyone. In fact, it is the undermining of those values that is destroying the lives of the poor.

                                           Janet Daley 08/28/07

       

       

      “Nature alone, to some, seems true. But is it?

      Nature, too, must be interpreted.”
       

      Virginia Postrel

       

       

      “Most people’s reasoning consists of finding reasons for going on believing as they already do.”

       

      James Harvey Robinson

       

       

      “If there is no such thing as human nature,

      then there are no universal moral principles

      that can be read

      from human nature.”

         

      G. Weigel

       

       

      “We are moving toward a dictatorship of relativism,

      which does not recognize anything as

      for certain and which has as its highest goal

      one’s own ego and one’s own desires.”

      Cardinal Ratzinger (Pope Benedict XVI)

       

       

      “Selfishness is not living as one wishes to live;

      it is asking others to live as one wishes to live.”

       

      Oscar Wilde

       

       

      “He that cannot forgive others, breaks the bridge

      over which he must pass himself;

      for every man has need to be forgiven.”

       

      Lord Herbert

       

       

      “It is a law of life that problems arise when conditions

      are there for their solution.”

       

      Walter Sisulu

       


       

      “Just because you do not take an interest in politics

      doesn’t mean that

      politics won’t take an interest

      in you.”      Pericles

       

       

      "Men always commit the error

      of not knowing

      when to limit their hopes."

      Machiavelli

       

       

      “A government big enough to give you everything

      you want,

      is strong enough to take everything

      you have.”

      Thomas Jefferson

       

       

      Government fully running an economy

      will not work as long as either the

      profit motive

      or the 

      alturistic motive

      exists.

       

       

      There is no weight heavier than debt

      Google = zero hits

       


      “The reason people don’t have is,

      because they don’t work hard to get.”

        

      Ray Charles

       

       

      “Ain’t nothing in this world for free,

      and it blows my mind

      how so many fools

      just don’t get that.”   Jamie Foxx

       

       

      "A couple of times there wasn't

      anything to eat.  I don't mean much

      to eat.  I mean anything.  This isn't

      an experience you forget in a hurry.

      I haven't ever forgotton it."

       

      The Kingdom of Swing, Benny Goodman - 1939

       

       

      "It is not industry

      but idleness

      that is degrading."

       

      Calvin Coolidge

       


       

      You can be who you want to be,

      so choose carefully and

      learn to live with the result.

      paraphrase of Self Help by Samuel Smiles, 1869 

       

       

      “You find a lot of lottery tickets in

      repossessed cars.”

      Brent Doyle, pres.

      Daybreak Auto Recovery, Inc.

       

       

      "You'll never walk alone"

      motto of the

      Liverpool Football Club

       


      Integers 

       

               "Arthmetic overcomes all your issues."

                      Ken Lewis, CEOBank of America 

       

       

      "When you try to chase ever-higher spending with

      ever-higher tax increases,

      you eventually run into a

      brick wall of math."

       

      Rep.Paul Ryan

       

       

       

      "Numbers are more significant

      than opinion."

       

      Steve Leuthold, Weeden Capital Management

       

       

       

           In economics, "The variables are constantly

              changing and constantly altering the trajectory

                 of other variables."      Zachary Karabell

       

       

      We go by the numbers,

        not by the sentiment of the investing public,

        or the sentiment of the politicians,

        or what you read in the paper. 

       

         Bob Auer  -  Auer Growth Fund

       

       

       

      "Math, not politics," Gina Raimondo, Rhode Island state treasurer

       

       


       

       

             Charles Mackay’s 1841 Memoirs of Extraordinary 

                 Popular Delusions, in which he wrote:

         

         "Every age has its peculiar folly—some scheme ... 

             or phantasy into which it plunges, spurred on by

               the love of gain,

                 the necessity of excitement, or

                   the mere force of imitation.”

       

       

       

         "Panics do not destroy capital; they merely reveal

           the extent to which it has been previously destroyed

           by its betrayal in hopelessly unproductive works."

          

             John Mills, "On Credit Cycles and the Origin of Commercial

              Panics," Transactions of the Manchester Statistical Society;

                                                  1867 - 1868.

       

       

       

      "There are times when you have to worry about

           the return of your capital and not the return

              on your capital."          Mohamed El-Erian

       

       

          


       

           “The urge to save humanity is almost always

               a false front for

                   the urge to rule it.”    H.L.Mencken

       

        


       

      "The least pain in our little finger

      give us more concern and uneasiness

      than the destruction of

      millions of our fellow-beings."

       

      William Hazlitt

      1778 - 1830

          


       

       

      "The life of the law has not been logic;

      it has been experience."

       

      Oliver Wendell Holmes  -  1881

       

       

      Alexander Hamilton explained in Federalist No.78 that judges exercise:

       

        “neither FORCE nor WILL, but merely judgment.”

       

         The point was that judges must depend upon the persuasiveness

         of their written opinions to command the respect and obedience

         of their fellow citizens.

       

       

       

      “Judges are like umpires.

      Umpires don’t make the rules,

      they apply them.”

       

      John Roberts, Chief Justice of the U.S. Supreme Court

       

       


       

          Nothing true or beautiful makes

          Complete sense

          In any context of history

              Therefore we must be saved by faith.

       

          Nothing we do, no matter how virtuous,

          Can be accomplished alone,
              Therefore we must be saved by love.

       

          Nothing worth doing is completed
          In one lifetime

              Therefore we must be saved by hope.

        

                                                                           Reinhold Niebuhr

       

       

       

      "The last hope of human liberty in this world

      rests on us."    Thomas Jefferson

       

       

       

      Humans are the only species to

      master fire.

       

       

       

      "No one can think the opposite of

      that which is self-evident."

       

      Aquinas  -  Summa Theologica

       

       

      "There is no terror in a bang,

      only in the

      anticipation of it."

       

      Alfred Hitchcock

       


       

      Isaac Newton [1642 - 1727] presented his methodology

      as a set of four rules for scientific reasoning. These rules were stated in the Principia and proposed that:

           

      (1) we are to admit no more causes of natural 

           things such as are both true and sufficient

           to explain their appearances,

         

      (2) the same natural effects must be assigned  

           to the same causes,

       

      (3) qualities of bodies are to be esteemed

           as universal, and

       

      (4) propositions deduced from observation of

           phenomena should be viewed as accurate

           until other phenomena contradict them.

       


           Mahatma Gandhi...

       

      1) supported the caste system [the traditional, ordered 

           society];

       

      2) refused to allow his wife to receive a penicillin shot

          that might have saved her life [anti Western medicine];

        

      3) sent a "Dear Friend" letter to Hitler whom he described

           as, "not a bad man" [not a good judge of character];

       

      4) his belief that the British, Czechs and Jews should 

          have offered non-violent resistance to the Nazis

           [ideology...yikes!];

       

      5) slept naked with young women so as to resist and

           overcome his sexual desire [though what that would 

              establish in Gandhi's mind I don't know];

       

      6) got the British out of India... a good thing. 

            


      Forty percent of the world's population

      lives within range of modern naval gunfire,

      and more than two-thirds within easy reach

      of carrier aircraft.     Mark Helprin

       


       

      "The divide between organics and biotechnology

      is an artificial construction

      maintained by ideology, rather than science."

       

      Cynthis Barmore  -  Princeton University

       


      Civilization is when

      I learn to live alone

      and

      we learn to live together

       


       

      "The future is purchased by the present."

      –Samuel Johnson

       


       

       

       

       

       

       

       

       

       

       

        

       

       

       

       

       

       

       


       

        Be  Kind ...

        Always Use Complete Sentences or Thoughts ...

        Maintain a Full, Current & Accurate Inventory ...

        and Relax...  

         

         

             "Plynth (Water Down the Drain)" - 1969

                               Jeff Beck Group

           Jeff Beck guitarist  -  Rod Stewart vocals

        Ron Wood bassist  -  Tony Newman drummer

                            Nick Hopkins pianist

         http://www.youtube.com/watch?v=D9gbQCvD91E

         


     
    General, portfolio investment considerations
     
     
    For accounts ranging between
       three-hundred thousand
    and
    ten million dollars
       
    NO: direct ownership of real estate, speculative or otherwise;
    tax advice; estate planning; forex; commodities trading;
    gold; mutual funds; ETFs; or quick-trades are offered.
     
    For portfolios over $10 million
    I can offer no guidence; but
    I do wish you well and
    Be Careful !
     
    See Disclaimer at bottom of
    Portfolio + Strategy page.
     
     
    Ordonnance Economics
         

       


     

           "A wise man, therefore, proportions his belief

                     to the evidence"    David Hume

     

     

    "He who is greedy

    is always in want."

      

    Horace 

    65 BC  -  8 BC

     

     

    knowledge  = virtue

     


     

     

    “A lie repeated often enough

    becomes the truth.”

     

    Dr.Paul Joseph Goebbels, Minister for Public Enlightenment & Propaganda, for the Nationalist Socialist [Nazi] regime,

    1933 - 1945

    This would be the echo-chamber effect; where

    ceaseless repetition of a view-point becomes a 'fact' ...

    the prevailing, conventional-wisdom.

     

     

    "Those who control the past,

    control the future;

    who controls the present

    controls the past."

     

    Big Brother's party slogan,

    1984, by George Orwell

     

     

     

    "The organization of the Party

    takes the place of the Party itself;

    the Central Committee

    takes the place of the Organization;

    and finally the dictator

    takes the place of the Central Committee."

    Leon Trotsky

     

     ...........................................................................................................

     

    Socialism in the USSR (1936):

     

    "From each

    according to his ability;

    to each

    according to his work."

     

    Lenin on the highest stage or the classless society:

     

    "From each

    according to his ability;

    to each

    according to his needs."

     

     


     

    "Truth may not depart from human nature...

    If what is regarded as truth departs

    from human nature...

    it may not be regarded as truth."

    Confucius, circa 485 BCE

     

     

     

    We should be raised,

    "so as both to delight in

    and to be pained

    by the things that we ought;

    this is the right education."

    Plato

    If you are actually unsure about what

    "the things that we ought"

    truly means, you failed to receive

    "the right education."

     

     

     A true man hates no one.   Napoleon Bonaparte

     

     

    “I never wonder to see men wicked,

    but I often wonder to see them not ashamed.”

     

    Jonathan Swift

     

     

     

    "Everybody worships. The only choice we get is

    what to worship.”    David Foster Wallace

     


     

    “It is hard to get a man to understand something

    if his living depends on him

    not understanding it.”

     

    Upton Sinclair

     

     

    “Don’t ask your barber

    if you need a haircut.”

     

    Warren Buffett

     

     

           "I know that most men, including those at ease

             with problems of the greatest complexity,

             can seldom accept even the simplest and

             most obvious truth if it be such as would

             oblige them to admit the falsity of conclusions

             which they have delighted in explaining

             to colleagues, which they have proudly taught

             to others, and which they have woven, thread by 

             thread, into the fabric of their lives." 
                                                                            Tolstoy

     

     

    “It is useless to attempt to reason a man

    out of a thing

    he was never reasoned into.” 

     

    Jonathan Swift

     

     

    "The heart has its reasons

    of which reason

    knows nothing."

       

    Blaise Pascal

     


     

    For the U.S. State Department

     

     

    "In matters of state, doors must shut pity out."

     

    Cardinal Richelieu

     

     

    "State is the name of the

    coldest of all cold monsters."

     

    Nietzsche

     


     

    "Lying here, during all this time after my own small fall,

      it has become my conviction that things mean pretty much 

      what we want them to mean.

       

      We'll pluck significance from the least consequential 

      happenstance if it suits us and happily ignore the most 

      flagrantly obvious symmetry between separate aspects

      of our lives if it threatens some cherished prejudice or 

      cosily comforting belief;

       

      we are blindest to precisely whatever might be

      most illuminating."

                                     from Transition, by Iain M. Banks

     


     

    "The powers of the legislature

    are defined and limited;

    and that those limits may not be

    mistaken or forgotton,

    the Constitution is written."

     

    Chief Justice John Marshall,

    writing in Marbury v. Madison (1803)

     


     

     

        In April, 1948 Ludwig Erhard, abolished most

        price controls and rationing directives in the

        U.S.-U.K. German zone.  Gen.Lucius Clay phoned

        Erhard and said,

         

    "Professor Erhard, my advisers tell me that you are 

       making a big mistake."

       

    Erhard replied, "So my advisers also tell me."

     

        Economic growth was almost instant and the German

         growth story began.  The Marshall Plan supplied the

         fuel... however, Erhard's plan was the match.

     


     

    Benjamin Constant (1767–1830

     

    "Whenever there is no absolute necessity,

    whenever legislation may fail to intervene

    without society being overthrown,

    whenever, finally, it is a question merely of some hypothetical improvement,

    the law must abstain,

    leave things alone,

    and keep quiet."

     

     

     

    “The general order-of-things that takes care of

    fleas and moles

    also takes care of men,

    if they will have the same patience

    that fleas and moles have,

    to leave it to itself.”

       

    Montaigne

     


     

     

    Fire is the grassland's friend

    and

    the forest's foe. 

     

     

    “All things are good;

    but all things are not good for every person,

    nor right at all times.”

     

    Hazrat Inayat Khan

     

     

    "The political mind

    is the product of men in public life who

    have been twice spoiled.

     

    They have been spoiled with praise

    and they have been spoiled with abuse.

     

    With them nothing is natural,

    everything is artificial.

     

    Calvin Coolidge

     

     

    “When men stop believing in God

    they don't believe in nothing;

    they believe in anything."

     

    G.K. Chesterton

     

     

    "The line separating

    good and evil

    passes not through

    states,

    not between classes,

    nor between political parties either,

    but right thru

    every human heart." 

    Alexander  Solzhenitsyn

     

     

    “When religion leaves the private sphere,

    it becomes ideology like any other,

    and must except to be criticized with the

    same virulence as any other ideology.”

     

    Philippe Val, publisher and editor of Charlie Hedo,

    a satirical weekly in Paris

     

     

     

    “Need obeys no law and forgets blushing.”

     

    Sir Philip Sidney  -  1603

     

     

    Alexander Hamilton had a reputation

    not unlike Bill Clinton's when

    it came to women.

    Martha Washington named one of the

    Mount Vernon tomcats Hamilton.

     

     

    "What man makes, man will mar:

    only the super-human endures."

    Joseph de Maistre

     

     

    "While civilization is the product of human action

    it is not the product of human design."

     

    Michael Oakeshott

     

     

    "Without a sense of proportion

    there can be neither

    good taste nor

    genuine intelligence, nor

    perhaps moral integrity."

     

    Eric  Hoffer

     

     

    "We find freedom in a preference for
    slow, small changes
    which have behind them a
    voluntary consensus...
    and in our perception that it is more important for a society to move together
    than for it to move
    either fast or slow."

     

    Michael Oakeshott, "The Poltical Economy of Freedom,"

    Rationalism in Politics and Other Essays

     

     

     

    "The problem of welfare economics

    must ultimately dissolve into a

    study of aesthetics and morals." 

     

    Frank H. Knight

     

     

    "A goal

    without a plan

    is just a wish."

     

    Antoine de Saint-Exupery

     

     

    "There is a tide in the affairs of men

    Which taken at the flood, leads on to fortune;

    Omitted, all the voyage of your life

    Is bound in shallows and in miseries."

    Shakespeare, Julius Caesar  Act 4, scene 3 

     

     

    “The ratio of angels to devils doesn’t change”

     

    Dr.Michael Dertouzos of MIT

     

     


    Stewart Brand and the Long Now project :

     

    “You can know the past, but can’t change it.

    You can effect the future, but you can’t know it.”

    Only in the present can we act and know.

     


     

     

     

    “I have but one lamp by which my feet are guided,

    and that is the lamp of experience.

    I know of no way of judging of the future

    but by the past.”

     

    Patrick Henry

     

     

    “We know of [our existence] by accumulating perceptions

    of ourselves.”

     

    Felipe Fernandez-Armesto

     

     

    “We are what we repeatedly do.” Aristotle

     


    “Complete moral tolerance is possible only when men

    have become completely indifferent

    to each other - that is to say,

    when society is at an end.”

     

    James Fitzjames Stephen

     

     

    Moral Relativism

    Excusing cannibalism

    because it's the "tribal custom."

     

     

    “I decline utterly to be impartial as between

    the Fire Brigade and the fire.”

     

    Winston Churchill

     

     

    “Only when the last king is strangled

    in the entrails of the last priest

    will we have freedom.”   Lenin

     

     

    The concept of cause applies to the objects of experience,

    linking past to future through universal laws.

      

    When we ask about the universe-as-a-whole

    we are attempting to go beyond possible experiences

    into a realm where the concept of cause

    has no purchase,

    and where the writ of reason does not run."

    Roger Scruton, philospher 

     

     

     "Defeat with one

    is better than

    victory with the other."

    Cicero   50 B.C.

    (choosing Pompey over Caesar)

     

     

    Rousseau was, "more capable of

    feeling strongly than of

    analyzing accurately."

     

    Adam Smith    1723 - 1790

     


                 "It is not the wolf at the door,

                     but the termites in the walls

                        that require attention."

                                   Charles L.Schultz, economist 

     

     

     

                 "The issue is always the same:

               the government or, the market.

                    There is no third way."

                                   

    Ludwig von Mises 

          Socialism: An Economic & Sociological Analysis

     

     

     

      “Government's view of the economy could be 

           summed up in a few short phrases:

              If it moves, tax it.

                 If it keeps moving, regulate it.

                    And if it stops moving, subsidise it”    

                                                                 Ronald Reagan

     

     

    "A government which robs Peter to pay Paul

      can always depend on the support of Paul."

     

    George Bernard Shaw

     

     

    “Democracy must be something more than

    two wolves and a sheep

    voting on what to have for dinner.”

     

    James Bovard

     

     

    “The way to crush the bourgeoisie is to grind them

    between the millstones of

    taxation and inflation.”

     

    Vladimir Lenin

     

     

    "Every monopoly and all exclusive privileges

    are granted at the expense of the public."

    Pres.Andrew Jackson  -  1832

    in reference to the Second Bank of the United States

     

     

    “Government is that great fiction through which everybody endeavors to live at the expense

    of everybody else.”

     

    Frederic Bastiat  (1801-1850)

     

     

        “In general, the art of government consists of

            taking as much money as possible from

               one party of the citizens

                  to give to the other.”

                                                                   Voltaire  (1764)

     


     

    “War is an ugly thing, but not the ugliest of things.

    The person who has nothing for which he is willing to fight, 

    nothing which is more important than

    his own personal safety,

    is a miserable creature

    and has no chance of being free

    unless made and kept so by the exertions

    of better men than himself.”    

    John Stuart Mill

     

     

     

    “Our public officials and the attendant factions and community groups are so far gone into their never-never-land of crossing “t’s” and dotting “i’s” that they barely know how to bring an issue to resolution. In their world, it’s never over. Process is life.”

    Daniel Henninger

     


     

    Over-indebtedness is most commonly started by,

     

    "new opportunities to invest at a

    big prospective profit,

    as compared with ordinary profits and interest...

    Easy money is the great cause of

    over-borrowing."

     

    The Debt-Deflation Theory

    of Great Depressions

     

    Irving Fisher

     Econometrica, p.348, 1933

     

     

     


    "The beginning of wisdom

    is to call things

    by their right names."    

    Chinese proverb

     

     

    Bureaucrat

    "pedal misapplications"

    Dept.of Transportation Secretary Ray LaHood

    = driver error

     

    Mortgage bankers

    "involuntary prepayment"

    = default on mortgage

     

    Apparatchik

    asked:

    Is Moamar Gadhafi a dictator?

    FoxNews' James Rosen

       

    answered:

    I don't think he came to office through

    a democratic process.

    State dept.spokesman P.J.Crowley

     

    Government Project Manager

    "strategic misrepresentation"

    = lying

     


     

     "Law extends only so far

    as its enforcement

    is able to reach."

    George H. Sabine

     

    "the adjacent possible"

    Steven Johnson

     

     

    "I judge of your sight by my sight,

    of your ear by my ear,

    of your reason by my reason,

    of your resentment by my resentment,

    of your love by my love.

    I neither have, nor can have,

    any other way of judging about them."

     

    The Theory of Moral Sentiments by Adam Smith - 1759

     

     


    The Exception Proves the Rule

     

    exceptio probat regulam in casibus non exceptis

                 

    "the exception confirms the rule in cases not excepted"

     

     An exception establishes that a rule exists

    requiring an exception from its command.

     


    "You may be sure that inaccurate language

       is not only in itself a mistake: it implants

          evil in men's souls."   Plato  -  Phaedo, 114 e

     

     

    "We certainly must not stop eating

                             for fear of choking."   Deng Xiaoping

     

     

       "The third-rate mind is only happy when it is

               thinking with the majority.

        The second-rate mind is only happy when it is 

               thinking with the minority.

        The first-rate mind is only happy when it is

               thinking."                                   A.A.Milne

     

     

    "Ideas are works of bricolage."

    Steven Johnson

     

     

       Book III of Milton’s Paradise Lost, where God 

        answers the question of why He created men

        and angels who could rebel against Him. Of man, 

        He responds:

     

           “… I made him just and right,
          Sufficient to have stood, though free to fall.
          Such I created all th’ ethereal Powers
          And Spirits, both them who stood and them

          who failed;  Freely they stood who stood,

          and fell who fell. …”

          Answer to the question on financial institutions that have

          become too-big-to-fail, by R.Fisher, pres. FRB of Dallas 

     

     

    Before the Battle at Little Bighorn, Indian agents

    counted 37,391 Indians on the reservations; after the battle a U.S. Army count showed 11,660 Indians.  The number of Indian dead varies from 36 to 300.  How did the population increase by 25,731?  The reservation agents salaries varied according to the Indian population ...

     incentives matter.

     

     

         "I don't know the secret to success,

             but the secret to failure is trying to please

                everybody."    Bill Cosby

     

     

    "Nothing is more obstinate

    than a fashionable

    consensus."

     

    Margaret  Thatcher

     

     

                            There is no vice

                                but it is the

                                   shadow of a virtue

                                                                             

                                                     Duns Scotus

     

     

    "Man, when separated from

    law and justice

    is the worst of all animals."

      

    Aristole

     

     

    "Everything should be made as

    simple as possible,

    but not simpler."

     

    Albert Einstein

     

    "In nature there are no

    rewards or punishments,

    there are consequences."

      

    Horace Annesley Vachell   1861-1955

    The Face of Clay

     


     

    "It is what it is

    but...

    it will be what you make it."

     

    Pat Summitt, Univ.of Tennessee

    women's basketball coach

    on being diagnosed with Alzheimer's;

    a reference to her diagnosis of

    the existential human condition.

     

     


    For an "irrevocable delete" of a Facebook account go to:

     

    http://on.fb.me/n50emK

    "Our system delays the deletion process in case you change your mind and no longer want to permanently delete your account.  Note that logging in to your account again will undo a pending deletion request." 

     

    They don't say how long the delay will be...more ifo at

    http://on.fb.me/pxjtS2

     


     

     Federal Notice with Product

     

    "Caution: Federal law requires us to

    advise that the rocks in this

    educational product may contain

    lead and might be harmful if

    swallowed."

     

    Rick Woldenberg, Learning Resources Inc.

       

    The product is igneous or volcanic rocks...oh my!

     


     

    "Sufficient unto the day is the evil thereof."

    Matthew  6:34

     ....................................................................................

     

    "I do not ask you about fifteen days ago.

    But what about fifteen days hence?

    There was no response.

         

    Umon answered:  "Every day is a good day."

     


    There is a difference

     

    take-it-or-leave-it

    Hobson's Choice

     

    your-money-or-your-life

    Hobbes Choice

     


     

    "No plan of operations extends

    with any certainty

    beyond the first contact

    with the main hostile force."

     

    Helmuth Carl Bernard Graf von Moltke

     

     


     

    "If you're not happy with

    what you are doing,

    you better do something else."

     

    Vincent Diener, California farmer

     


     

    A schedule defends from

    chaos and whim

      

    Chinese fortune cookie;

    spreadsheets help too.

     


     

    Where is the wisdom we have lost in knowledge?

     

    Where is the knowledge we have lost in information?

        

    T.S. Eliot, The Rock, 1934

     

     


     

    “Cowardice asks the question—is it safe?

    Expediency asks the question—is it politic?

    Vanity asks the question—is it popular?

    But conscience asks the question—is it right? …

    There comes a time when one must take a position

    that is neither safe,

    nor politic,

    nor popular,

    but one must take it because it is right.”

     

    Martin Luther King Jr.

     

     


     

    "There are two kinds of power

    you have to fight.

    The first is money;

    and that's just our system.

    The other is the people

    close around you,

    knowing when to accept

    their criticism,

    knowing when to say no."

      

    Martin Scorsese

     

     


     

    If men were angels, no government

    would be necessary. 

    If angels were to govern men,

    neither external nor internal controls on

    government would be necessary. 

     

    In framing a government which is

    to be administered by men over men,

    the great difficulty lies in this:

     

    you must first enable the government

    to control the governed;

    and in the next place oblige it to

    control itself.

     

    James Madison

    Federalist No.51

    1788

     

     

    "The only thing that saves us from

    the bureaucracy is its

    inefficiency."

       

    Eugene McCarthy   1916 - 2005

     

     

    Massachusetts listed only seven occupations

    for women in 1843; 50 years later the state

    listed over 300 job-types for women.

     


     

    First they came for the Socialists,

    and I did not speak out -- 
    Because I was not a Socialist.

     

    Then they came for the Trade Unionists,

    and I did not speak out -- 
    Because I was not a Trade Unionist.

     

    Then they came for the Jews,

    and I did not speak out -- 
    Because I was not a Jew.

     

    Then they came for me --

    and there was no one left to speak for me.

     

    Martin Niemoller, German pastor

     


    Re-using a eco-chic cotton bag 131 times =

    the carbon footprint of one, plastic, grocery

    bag; and if you re-use it as a wastebasket

    liner its even better (or take them back to

    the store).

     

    Evidence: Life Cycle Assessment of Supermarket Carrier Bags

    http://www.american.com/archive/2011/march/a-punching-bag-no-more 

     

     


     

    "The blackest dispair that can take hold of any society

    is the fear that living honestly

    is futile."

     

    Corrado Alvaro

     


     

    The Good Old Days

     

    So many people had their

    noses cut off that

    medieval medical textbooks

    speculated about techniques

    for growing them back

     

     


     

     

    Signing of the

    Declaration of Independence

    on a U.S. 24 cent stamp

    issued in 1869

     

     


    I've woken up on mornings such as this
    And thought exactly the same as I'm thinking now
    Every night for a year I've slept alone
    My cold damp room looks worse than me

    I got a fear of death that creeps on every night
    I know I won't die soon but then again I might
    Just like water down the drain I'm wasting away
    And oh, doctors can't help, a ghost of a man, that's me

    And oh, water down the drain flows to the sea
    The pattern of my life keeps on hauntin' me
    Like moisture from the ocean fills the sky
    Comes on down to the ground as time goes by

    Please don't weep for me when I'm gone

    I got a fear of death that creeps on every night
    And I know I won't die soon but then again I might

    Please don't weep for me when I'm gone

    A fear of death that creeps on every night