Centralized Banking Quotes

It is no coincidence that the century of total war coincided with the century of central banking.

I spent 33 years and four months in active military service and during that period I spent most of my time as a high class muscle man for Big Business, for Wall Street and the bankers. In short, I was a racketeer, a gangster for capitalism. I helped make Mexico and especially Tampico safe for American oil interests in 1914. I helped make Haiti and Cuba a decent place for the National City Bank boys to collect revenues in. I helped in the raping of half a dozen Central American republics for the benefit of Wall Street. I helped purify Nicaragua for the International Banking House of Brown Brothers in 1902-1912. I brought light to the Dominican Republic for the American sugar interests in 1916. I helped make Honduras right for the American fruit companies in 1903. In China in 1927 I helped see to it that Standard Oil went on its way unmolested. Looking back on it, I might have given Al Capone a few hints. The best he could do was to operate his racket in three districts. I operated on three continents.

A system of capitalism presumes sound money, not fiat money manipulated by a central bank. Capitalism cherishes voluntary contracts and interest rates that are determined by savings, not credit creation by a central bank.

People and institutions that refuse to admit error eventually discredit themselves.

I will feel no guilt on shutting my door to those who didn't listen.

Money is not an invention of the state. It is not the product of a legislative act. Even the sanction of political authority is not necessary for its existence. Certain commodities came to be money quite naturally, as the result of economic relationships that were independent of the power of the state.

A man who seeks only the light, while shirking his responsibilities, will never find illumination. And one who keep his eyes fixed upon the sun ends up blind..." "It doesn't matter what others think -because that's what they will think, in any case. So, relax. Let the universe move about. Discover the joy of surprising yourself." "The master says: “Make use of every blessing that God gave you today. A blessing cannot be saved. There is no bank where we can deposit blessings received, to use them when we see fit. If you do not use them, they will be irretrievably lost. God knows that we are creative artists when it comes to our lives. On one day, he gives us clay for sculpting, on another, brushes and canvas, or a pen. But we can never use clay on our canvas, nor pens in sculpture. Each day has its own miracle. Accept the blessings, work, and create your minor works of art today. Tomorrow you will receive others.” “You are together because a forest is always stronger than a solitary tree,” the master answered. "The forest conserves humidity, resists the hurricane and helps the soil to be fertile. But what makes a tree strong is its roots. And the roots of a plant cannot help another plant to grow. To be joined together in the same purpose is to allow each person to grow in his own fashion, and that is the path of those who wish to commune with God.” “If you must cry, cry like a child. You were once a child, and one of the first things you learned in life was to cry, because crying is a part of life. Never forget that you are free, and that to show your emotions is not shameful. Scream, sob loudly, make as much noise as you like. Because that is how children cry, and they know the fastest way to put their hearts at ease. Have you ever noticed how children stop crying? They stop because something distracts them. Something calls them to the next adventure. Children stop crying very quickly. And that's how it will be for you. But only if you can cry as children do.” “If you are traveling the road of your dreams, be committed to it. Do not leave an open door to be used as an excuse such as, 'Well, this isn't exactly what I wanted. ' Therein are contained the seeds of defeat. “Walk your path. Even if your steps have to be uncertain, even if you know that you could be doing it better. If you accept your possibilities in the present, there is no doubt that you will improve in the future. But if you deny that you have limitations, you will never be rid of them. “Confront your path with courage, and don't be afraid of the criticism of others. And, above all, don't allow yourself to become paralyzed by self-criticism. “God will be with you on your sleepless nights, and will dry your tears with His love. God is for the valiant.” "Certain things in life simply have to be experienced -and never explained. Love is such a thing." "There is a moment in every day when it is difficult to see clearly: evening time. Light and darkness blend, and nothing is completely clear nor completely dark." "But it's not important what we think, or what we do or what we believe in: each of us will die one day. Better to do as the old Yaqui Indians did: regard death as an advisor. Always ask: 'Since I'm going to die, what should I be doing now?'” "When we follow our dreams, we may give the impression to others that we are miserable and unhappy. But what others think is not important. What is important is the joy in our heart.” “There is a work of art each of us was destined to create. That is the central point of our life, and -no matter how we try to deceive ourselves -we know how important it is to our happiness. Usually, that work of art is covered by years of fears, guilt and indecision. But, if we decide to remove those things that do not belong, if we have no doubt as to our capability, we are capable of going forward with the mission that is our destiny. That is the only way to live with honor.

Once you understand the economics of the Austrian School and the philosophy of liberty in the tradition of Rothbard, you never look at anything – not the state, the media, the central bank, the political class, nothing – the same way again.

Every culture has a myth of decline from some golden age, and almost all peoples throughout history have been pessimists. Even today pessimism still dominates huge parts of the world. An indefinite pessimist looks out onto a bleak future, but he has no idea what to do about it. This describes Europe since the early 1970s, when the continent succumbed to undirected bureaucratic drift. Today the whole Eurozone is in slow-motion crisis, and nobody is in charge. The European Central Bank doesn’t stand for anything but improvisation: the U.S. Treasury prints “In God We Trust” on the dollar; the ECB might as well print “Kick the Can Down the Road” on the euro. Europeans just react to events as they happen and hope things don’t get worse.

Inflation is always and everywhere a monetary phenomenon.

In fact this is precisely the logic on which the Bank of England—the first successful modern central bank—was originally founded. In 1694, a consortium of English bankers made a loan of £1,200,000 to the king. In return they received a royal monopoly on the issuance of banknotes. What this meant in practice was they had the right to advance IOUs for a portion of the money the king now owed them to any inhabitant of the kingdom willing to borrow from them, or willing to deposit their own money in the bank—in effect, to circulate or "monetize" the newly created royal debt. This was a great deal for the bankers (they got to charge the king 8 percent annual interest for the original loan and simultaneously charge interest on the same money to the clients who borrowed it) , but it only worked as long as the original loan remained outstanding. To this day, this loan has never been paid back. It cannot be. If it ever were, the entire monetary system of Great Britain would cease to exist.

This is a historical lesson of immense significance, and should be kept in mind by anyone who thinks his refusal of Bitcoin means he doesn't have to deal with it. History shows it is not​ possible to insulate yourself from the consequences of others holding money that is harder than yours.

At Mayflower-Plymouth we aim to employ capital and maximize ROI for central banks, sovereign wealth funds, pension funds, corporations, foundations and endowments, and individual investors around the world.

Once the caravan reached the Kashmir Valley between the Great Himalayas and the Pir Panjal Range, in the northernmost region of the Indian subcontinent, Jesus continued the journey with a small group of locals until he completed the last leg on his own, guided from one place to another by the local people. Some weeks later, he made it to the Indian Himalayan region where Jesus was greeted by some Buddhist monks and with whom he sojourned for some time. From that location, he then went to live in the city of Rishikesh, in India's northern state of Uttarakhand, spending most of his time meditating in a cave known as Vashishta Gufa, on the banks of the River Ganga. Jesus lived in those lands for many months before he continued traveling to the northeast, until he arrived in the Kingdom of Magadha, in what is presently West-central Bihar. It so happened that it was here, in Magadha, that Jesus met Mari for the first time, the woman better known today as Mary Magdalene...

Now the stream of our common consciousness seems to be obliterating its own banks, losing its central direction and purpose, flooding the lowlands, disconnecting and isolating the highlands and to no particular purpose other than the wasteful fulfillment of its own internal momentum

In the mid 1980's I was asked by an american legal institution known as the Christic Legal Institute to compile a comic book that would detail the murky history of the C.I.A., from the end of the second world war, to the present day. Covering such things as the heroin smuggling during the Vietnam war, the cocaine smuggling during the war in Central America, the Kennedy assasination and other highlights. What I learned during the frankly horrifying research that I had to slog through in order to accomplish this, was that yes, there is a conspiracy, in fact there are a great number of conspiracies that are all tripping each other up. And all of those conspiracies are run by paranoid fantasists, and ham fisted clowns. If you are on a list targeted by the C.I.A., you really have nothing to worry about. If however you have a name similar to someone on a list targeted by the C.I.A., then you are dead? The main thing that I learned about conspiracy theory, is that conspiracy theorists believe in a conspiracy because that is more comforting. The truth of the world is that it is actually chaotic. The truth is that it is not The Iluminati, or The Jewish Banking Conspiracy, or the Gray Alien Theory. The truth is far more frightening. Nobody is in control. The world is rudderless...

I was reading in the paper today that Congress wants to replace the dollar bill with a coin. They’ve already done it. It’s called a nickel.

money that is easy to produce is no money at all, and easy money does not make a society richer; on the contrary, it makes it poorer by placing all its hard‐earned wealth for sale in exchange for something easy to produce.

...those retrospectively blessed dozen years lasted from the chilly, fevered Central European night of November 9th, 1989 to that bright morning on the Eastern Seaboard of American of September 11th, 2001. One event symbolized the lifted threat of a worldwide nuclear holocaust, something which had been hanging over humanity for nearly forty years, and so ended an age of idiocy. The other ushered in a new one.

The Central Bank of The Bahamas and the Bahamian people are leading the world in the normalization of digital currency and Blockchain technology as ways to build speed, liquidity, access, efficiency and security into payments.

its mere existence is an insurance policy that will remind governments that the last object the establishment could control, namely, the currency, is no longer their monopoly. This gives us, the crowd, an insurance policy against an Orwellian future.

Grieving the reality of being manipulated to believe we are not enough, divine, or valuable outside of our accomplishments and bank account is a central part of our rest work.

History has shown that governments will inevitably succumb to the temptation of inflating the money supply.

The total U.S. M2 measure of the money supply in 1971 was around $600 billion, while today it is in excess of $12 trillion, growing at an average annual rate of 6.7%.

What is in mind is a sort of Chautauqua...that's the only name I can think of for it...like the traveling tent-show Chautauquas that used to move across America, this America, the one that we are now in, an old-time series of popular talks intended to edify and entertain, improve the mind and bring culture and enlightenment to the ears and thoughts of the hearer. The Chautauquas were pushed aside by faster-paced radio, movies and TV, and it seems to me the change was not entirely an improvement. Perhaps because of these changes the stream of national consciousness moves faster now, and is broader, but it seems to run less deep. The old channels cannot contain it and in its search for new ones there seems to be growing havoc and destruction along its banks. In this Chautauqua I would like not to cut any new channels of consciousness but simply dig deeper into old ones that have become silted in with the debris of thoughts grown stale and platitudes too often repeated. "What's new?" is an interesting and broadening eternal question, but one which, if pursued exclusively, results only in an endless parade of trivia and fashion, the silt of tomorrow. I would like, instead, to be concerned with the question "What is best?," a question which cuts deeply rather than broadly, a question whose answers tend to move the silt downstream. There are eras of human history in which the channels of thought have been too deeply cut and no change was possible, and nothing new ever happened, and "best" was a matter of dogma, but that is not the situation now. Now the stream of our common consciousness seems to be obliterating its own banks, losing its central direction and purpose, flooding the lowlands, disconnecting and isolating the highlands and to no particular purpose other than the wasteful fulfillment of its own internal momentum. Some channel deepening seems called for.

Capitalism is what happens when people drop their time preference, defer immediate gratification, and invest in the future. Debt‐fueled mass consumption is as much a normal part of capitalism as asphyxiation is a normal part of respiration.

Sound money is also an essential element of a free society as it provides for an effective bulwark against despotic government.

A good that assumes the role of a widely accepted medium of exchange is called money.

If Congress has the right under the constitution to issue paper money, it was given them to be used by themselves, not to be delegated to individuals or corporations.

The purpose of a centralized financial system or any other system, is not to exploit people, but to ensure stability in the society.

Centralized blockchain can be a great boon to the society, especially in the developing parts of the world, whereas decentralized blockchain will only cause chaos and destruction.

In the same way that central banking nearly wrecked the world and created one calamity after another, bitcoin can save the world one transaction at a time. It is time for a new beginning.

The social organs are constituted so as to enable them to develop harmoniously in the grand air of liberty. Away, then, with quacks and organizers! Away with their rings, and their chains, and their hooks, and their pincers! Away with their artificial methods! Away with their social laboratories, their governmental whims, their centralization, their tariffs, their universities, their State religions, their inflationary or monopolizing banks, their limitations, their restrictions, their moralizations, and their equalization by taxation! And now, after having vainly inflicted upon the social body so many systems, let them end where they ought to have begun — reject all systems, and try of liberty — liberty, which is an act of faith in God and in His work

Civilization is not about more capital accumulation per se; rather, it is about what capital accumulation allows humans to achieve, the flourishing and freedom to seek higher meaning in life when their base needs are met and most pressing dangers averted.

If we acted, nobody would thank us. But if we did not act, who would? Making politically unpopular decisions for the long-run benefit of the country is the reason the Fed exists as a politically independent central bank. It was created for precisely this purpose: to do what must be done—what others cannot or will not do.

We have left behind the rosy agrarian rhetoric and slaveholding reality of Jeffersonian democracy and reside in the bustling world of trade, industry, stock markets, and banks that Hamilton envisioned. (Hamilton’s staunch abolitionism formed an integral feature of this economic vision.) He has also emerged as the uncontested visionary in anticipating the shape and powers of the federal government. At a time when Jefferson and Madison celebrated legislative power as the purest expression of the popular will, Hamilton argued for a dynamic executive branch and an independent judiciary, along with a professional military, a central bank, and an advanced financial system. Today, we are indisputably the heirs to Hamilton’s America, and to repudiate his legacy is, in many ways, to repudiate the modern world.

Sound money allows people to think about the long term and to save and invest more for the future. Saving and investing for the long run are the key to capital accumulation and the advance of human civilization.

You have to include inflation in your annual revenue and expense forecasts. You have to treat inflation as an annual fee your business pays into the economy. If inflation is 2% for example, that means the economy is charging your business a 2% annual fee and so you gotta make sure your income and total assets grow at minimum 2% annually just to keep up.

While microeconomics has focused on transactions between individuals, and macroeconomics on the role of government in the economy, the reality is that the most important economic decisions to any individual's well-being are the ones they conduct in their trade-offs with their future self.

God has given to men all that is necessary for them to accomplish their destinies. He has provided a social form as well as a human form. And these social organs of humans are so constituted that they will develop themselves harmoniously in the clean air of liberty. Away, then, with the quacks and organizers! Away with their rings, chains, hooks and pincers! Away with their artificial systems! Away with the whims of governmental administrators, their socialized projects, their centralization, their tariffs, their government schools, their state religions, their free credit, their bank monopolies, their regulations, their restrictions, their equalization by taxation, and their pious moralizations! And, now that the legislators and do-gooders have so futilely inflicted so many systems upon society, may they finally end where they should have begun: May they reject all systems, and try liberty; for liberty is an acknowledgment of faith in God and His works.

Throughout the ages, currencies have ceased to exist because of one rudimentary fact: governments are unable to resist the temptation to create free money for themselves.

As H. L. Mencken put it: “Every election is an advanced auction on stolen goods.

because money is the market good with the least diminishing marginal utility.

But money's marginal utility declines far slower than any other good, because it declines along with the utility of wanting any good, not one particular good.

The average savings rate of the seven largest advanced economies12 was 12.66% in 1970, but has dropped to 3.39% in 2015, a fall of almost three-quarters.

In fact, there’s more genetic diversity between two groups of chimpanzees living on opposite banks of a river in Central Africa than there is between humans on opposite sides of the world.

The root problem with conventional currency is all the trust that’s required to make it work. The central bank must be trusted notto debase the currency, but the history of fiat currencies is full of breaches of that trust. Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve.

Refuting the false promises requires philosophic understanding of economic interventionism, central banking, and the deeply flawed foreign policy of meddling in the affairs of other nations.

There is no answer in the available literature to the question why a government monopoly of the provision of money is universally regarded as indispensable. ... It has the defects of all monopolies.

But a government which raises taxes to fund a monarch's lavish lifestyle will engender mass resentment among his population, endangering the legitimacy of his rule and making it ever more precarious.

Interventionism inevitably leads to socialism, central banking inevitably leads to hyperinflation, total cashlessness inevitably leads to total surveillance, and "guaranteed income" inevitably leads to guaranteed enslavement. A deadly poison remains a deadly poison even when ingested in a gradual manner.

I spent 33 years and 4 months in active military service . . . And during that period I spent most of my time as a high-class muscle man for Big Business, for Wall Street and the bankers. In short, I was a racketeer, a gangster for capitalism. Thus, I helped make Mexico and especially Tampico safe for American oil interests in 1914. I helped make Haiti and Cuba a decent place for the National City Bank boys to collect revenues in. I helped in the raping of half a dozen Central American republics for the benefit of Wall Street. I helped purify Nicaragua for the international banking house of Brown Brothers in 1902–1912. I brought light to the Dominican Republic for American sugar interests in 1916. I helped make Honduras right for American fruit companies in 1903. In China in 1927, I helped see to it that Standard Oil went on its way unmolested. Our boys were sent off to die with beautiful ideals painted in front of them. No one told them that dollars and cents were the real reason they were marching off to kill and die.

Empires are synonymous with centralized—if occasionally schismatized—hierarchical power structures in which influence is restricted to an economically privileged class retaining its advantages through—usually—a judicious use of oppression and skilled manipulation of both the society’s information dissemination systems and its lesser—as a rule nominally independent—power systems. In short, it’s all about dominance.

Nature likes to overinsure itself. Layers of redundancy are the central risk management property of natural systems. We humans have two kidneys (this may even include accountants), extra spare parts, and extra capacity in many, many things (say, lungs, neural system, arterial apparatus), while human design tends to be spare and inversely redundant, so to speak—we have a historical track record of engaging in debt, which is the opposite of redundancy (fifty thousand in extra cash in the bank or, better, under the mattress, is redundancy; owing the bank an equivalent amount, that is, debt, is the opposite of redundancy). Redundancy is ambiguous because it seems like a waste if nothing unusual happens. Except that something unusual happens—usually.

a money that is easy to produce is no money at all, and easy money does not make a society richer; on the contrary, it makes it poorer by placing all its hard-earned wealth for sale in exchange for something easy to produce.

He was the most contradictory of men. A champion of extending freedom and democracy to even the poorest of whites, Jackson was an unrepentant slaveholder. A sentimental man who rescued an Indian orphan on a battlefield to raise in his home, Jackson was responsible for the removal of Indian tribes from their ancestral lands. An enemy of Eastern financial elites and a relentless opponent of the Bank of the United States, which he believed to be a bastion of corruption, Jackson also promised to die, if necessary, to preserve the power and prestige of the central government. Like us and our America, Jackson and his America achieved great things while committing grievous sins.

Governments and central banks were quietly admitting something they were still reluctant to announce publicly: the extraordinary power of private-sector banks lending to determine the pace of money creation, and therefore economic growth.

The introduction of Bitcoin, as a currency native to the Internet superseding national borders and outside the realm of governmental control, offers an intriguing possibility for the emergence of a new international monetary system, to be analyzed in Chapter 9.

According to Cantillon, the beneficiaries from the expansion of the money supply are the first recipients of the new money, who are able to spend it before it has caused prices to rise. Whoever receives it from them is then able to spend it facing a small increase in the price level. As the money is spent more, the price level rises, until the later recipients suffer a reduction in their real purchasing power. This is the best explanation for why inflation hurts the poorest and helps the richest in the modern economy.

There are almost 200 currencies of the world, but there’s only one international currency. There are almost 200 currencies controlled by central banks and governments, but there is only one mathematical currency today, and that is bitcoin. We are going to build more of them. Cryptographic currencies are going to be a mainstay of our financial future. They are going to be a part of the future of this planet because they have been invented. It’s as simple as that. You cannot un-invent this technology. You cannot turn this omelette back into eggs.

Incorporating cryptocurrency in the traditional centralized financial system not only speeds up transactions exponentially, but also it makes the system more user-friendly, whereas in a decentralized system cryptocurrency will only breed insecurity and chaos, due to the utter absence of liability.

It was only with the crisis that debt soared. Yet many Europeans in key positions - especially politicians and officials in Germany, but also the leadership of the European Central Bank and opinion leaders throughout the world of finance and banking - are deeply committed to the Big Delusion, and no amount of contrary evidence will shake them. As a result, the problem of dealing with the crisis is often couched in moral terms: nations are in trouble because they have sinned, and they must redeem themselves through suffering. And that's a very bad way to approach the actual problems Europe faces.

There is something about the very idea of a city which is central to the understanding of a planet like Earth, and particularly the understanding of that part of the then-existing group-civilization which called itself the West. That idea, to my mind, met its materialist apotheosis in Berlin at the time of the Wall. Perhaps I go into some sort of shock when I experience something deeply; I'm not sure, even at this ripe middle-age, but I have to admit that what I recall of Berlin is not arranged in my memory in any normal, chronological sequence. My only excuse is that Berlin itself was so abnormal - and yet so bizarrely representative - it was like something unreal; an occasionally macabre Disneyworld which was so much a part of the real world (and the realpolitik world), so much a crystallization of everything these people had managed to produce, wreck, reinstate, venerate, condemn and worship in their history that it defiantly transcended everything it exemplified, and took on a single - if multifariously faceted - meaning of its own; a sum, an answer, a statement no city in its right mind would want or be able to arrive at.

The well-known phenomenon of the modern breakdown of the family cannot be understood without recognizing the role of unsound money allowing the state to appropriate many of the essential roles that the family has played for millennia, and reducing the incentive of all members of a family to invest in long-term familial relations.

Facing the sagging middle when writing a novel, while inevitable, may be overcome by pre-planning. I divide my collection of proposed scenes into three acts, each scene inciting tension that builds toward the final crisis in Act Three. If by Act Two the emotional river isn't spilling over the banks, I reassess the plot so that once the writing is flowing I don't slide into a dry creek. The central character should be struggling to navigate life well into the end of Act One, even if her fiercest antagonist is only from within.

Banking was conceived in iniquity and was born in sin. The bankers own the earth. Take it away from them, but leave them the power to create deposits, and with a flick of the pen they will create enough deposits to buy it back again. However, take it away from them, and all the great fortunes like mine will disappear and they ought to disappear, for this would be a happier and better world to live in. But, if you wish to remain the slaves of the bankers and pay the cost of your own slavery, let them continue to create deposits.

Hyperinflation is a form of economic disaster unique to government money. There was never an example of hyperinflation with economies that operated a gold or silver standard, and even when artifact money like seashells and beads lost its monetary role over time, it usually lost it slowly, with replacements taking over more and more of the purchasing power of the outgoing money.

As with Rome, the fall of Constantinople happened only after its rulers had started devaluing the currency, a process that historians believe began in the reign of Constantine IX Monomachos (1042–1055).8 Along with monetary decline came the fiscal, military, cultural, and spiritual decline of the Empire, as it trudged on with increasing crises until it was overtaken by the Ottomans in 1453.

Away, then, with quacks and organizers! Away with their rings, chains, hooks, and pincers! Away with their artificial systems! Away with the whims of governmental administrators, their socialized projects, their centralization, their tariffs, their government schools, their state religions, their free credit, their bank monopolies, their regulations, their restrictions, their equalization by taxation, and their pious moralizations!

The powers of financial capitalism had another far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalistic fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent meetings and conferences. The apex of the systems was to be the Bank for International Settlements in Basel, Switzerland, a private bank owned and controlled by the worlds central banks which were themselves private corporations. Each central bank...sought to dominate its government by its ability to control Treasury loans, to manipulate foreign exchanges, to influence the level of economic activity in the country, and to influence co-operative politicians by subsequent economic rewards in the business world.” Carroll Quigley

I consider myself a “social ecologist,” concerned with man’s man-made environment the way the natural ecologist studies the biological environment.....the discipline itself boasts an old and distinguished lineage. Its greatest document is Alexis de Tocqueville’s Democracy in America. But no one is as close to me in temperament, concepts, and approach as the mid-Victorian Englishman Walter Bagehot. Living (as I have) in an age of great social change, Bagehot first saw the emergence of new institutions: civil service and cabinet government, as cores of a functioning democracy, and banking as the center of a functioning economy. A hundred years after Bagehot, I was first to identify management as the new social institution of the emerging society of organizations and, a little later, to spot the emergence of knowledge as the new central resource, and knowledge workers as the new ruling class of a society that is not only “postindustrial” but postsocialist and, increasingly, post-capitalist. As it had been for Bagehot, for me too the tension between the need for continuity and the need for innovation and change was central to society and civilization.

Observing prices of agricultural commodities in the Roman empire in terms of grams of gold shows they bear remarkable similarity to prices today. Examining Diocletian's edict5 of prices from 301 AD and converting gold prices to their modern-day U.S. dollar equivalent, we find that a pound of beef cost around $4.50, while a pint of beer cost around $2, a pint of wine around $13 for high quality wine and $9 for lower quality, and a pint of olive oil cost around $20.

The United States summoned representatives of its allies to Bretton Woods in New Hampshire to discuss formulating a new global trading system. History has not been very kind to the architects of this system. Britain's representative was none other than John Maynard Keynes, whose economic teachings were to be wrecked on the shores of reality in the decades following the war, while America's representative, Harry Dexter White, would later be uncovered as a Communist who was in contact with the Soviet regime for many years.

When foreign military spending [bombing Korea and Vietnam] forced the U.S. balance of payments into deficit and drove the United States off gold in 1971, central banks were left without the traditional asset used to settle payments imbalances. The alternative by default was to invest their subsequent payments inflows in U.S. Treasury bonds, as if these still were “as good as gold.” Central banks have been holding some $4 trillion of these bonds in their international reserves for the past few years — and these loans have financed most of the U.S. Government’s domestic budget deficits for over three decades. Given the fact that about half of U.S. Government discretionary spending is for military operations — including more than 750 foreign military bases and increasingly expensive operations in the oil-producing and transporting countries — the international financial system is organized in a way that finances the Pentagon, along with U.S. buyouts of foreign assets expected to yield much more than the Treasury bonds that foreign central banks hold.

Nothing brings home the fragility of the banking system or the potency of a financial crisis more vividly than writing about these issues from the eye of the storm. Watching the world’s central bankers and finance officials grappling with the current situation—trying one thing after another to restore confidence, throwing everything they can at the problem, coping daily with unexpected and startling shifts in market sentiment—reinforces the lesson that there is no magic bullet or simple formula for dealing with financial panics.

If central banks can convince people that inflation will move higher, people will begin spending more money today (why wait to buy something if prices are heading up?), and the added demand will actually move prices higher. Still others see inequality and wage stagnation as key drivers of slow growth and de minimis pressure on wages and prices. Some say wage growth and a more equitable distribution of income would help bolster demand among lower- and middle-income households, thereby helping to create some inflationary pressure.

Every major war in American history, except the Mexican and Spanish-American, has either led to central banking or resulted from it. Central banking and government have a symbiotic relationship that is often mediated by war. Central banking gives government a way to tap the productive power of the private sector and borrow from the future without the need to rely overmuch on unpopular tax increases. Government gives central banking the extreme profits that derive from immense borrowing to finance wars and other government projects.

The first people to get the new money are the counterfeiters, which they use to buy various goods and services. The second receivers of the new money are the retailers who sell those goods to the counterfeiters. And on and on the new money ripples out through the system, going from one pocket or till to another. As it does so, there is an immediate redistribution effect. For first the counterfeiters, then the retailers, etc. have new money and monetary income they use to bid up goods and services, increasing their demand and raising the prices of the goods that they purchase. But as prices of goods begin to rise in response to the higher quantity of money, those who haven't yet received the new money find the prices of the goods they buy have gone up, while their own selling prices or incomes have not risen. In short, the early receivers of the new money in this market chain of events gain at the expense of those who receive the money toward the end of the chain, and still worse losers are the people (e.g., those on fixed incomes such as annuities, interest, or pensions) who never receive the new money at all.

No revolution can be successful without organization and money. "The downtrodden masses" usually provide little of the former and none of the latter. But Insiders at the top can arrange for both.   What did these people possibly have to gain in financing the Russian Revolution? What did they have to gain by keeping it alive and afloat, or, during the 1920's by pouring millions of dollars into what Lenin called his New Economic Program, thus saving the Soviets from collapse?   Why would these "capitalists" do all this? If your goal is global conquest, you have to start somewhere. It may or may not have been coincidental, but Russia was the one major European country without a central bank. In Russia, for the first time, the Communist conspiracy gained a geographical homeland from which to launch assaults against the other nations of the world. The West now had an enemy.   In the Bolshevik Revolution

On his thirteenth birthday he had seen a film in which the central character was a painter who, unable to sell his work, grew cold and hungry as he went from one unsuccessful interview to the next; eventually he had become a vagrant, sleeping in the streets of the city where once he had walked in hope. Hawksmoor left the cinema in a mood of profound, terrified apprehension and, from that time, he was filled with a sense of time passing and with the fear that he might be left discarded on its banks. The fear had not left him, although now he could no longer remember from where it came: he looked back on his earlier life without curiosity, since it seemed to lack intrinsic interest, and when he looked forward he saw the same steady attainment of goals without any joy in their attainment. For him, the state of happiness was simply the state of not suffering and, if he cared for anything, it was for oblivion.

The oldest recorded example of fiat money was jiaozi, a paper currency issued by the Song dynasty in China in the tenth century. Initially, jiaozi was a receipt for gold or silver, but then government controlled its issuance and suspended redeemability, increasing the amount of currency printed until it collapsed. The Yuan dynasty also issued fiat currency in 1260, named chao, and exceeded the supply far beyond the metal backing, with predictably disastrous consequences. As the value of the money collapsed, the people fell into abject poverty, with many peasants resorting to selling their children into debt slavery.

First of all, historically, markets simply did not emerge as some autonomous domain of freedom independent of, and opposed to, state authorities. Exactly the opposite is the case. Historically, markets are generally either a side effects of government operations, especially military operations, or were directly created by government policy. This has been true at least since the invention of coinage, which was first created and promulgated as a means of provisioning soldiers; for most of Eurasian history, ordinary people used informal credit arrangements and physical money, gold, silver, bronze, and the kind of impersonal markets they made possible remained mainly an adjunct to the mobilization of legions, sacking of cities, extraction of tribute, and disposing of loot. Modern central banking systems were likewise first created to finance wars. So there's one initial problem with the conventional history. There's another even more dramatic one. While the idea that the market is somehow opposed to and independent of government has been used at least since the nineteenth century to justify laissez faire economic policies designed to lessen the role of government, they never actually have that effect. English liberalism, for instance, did not lead to a reduction of state bureaucracy, but the exact opposite: an endlessly ballooning array of legal clerks, registrars, inspectors, notaries, and police officials who made the liberal dream of a world of free contract between autonomous individuals possible. It turned out that maintaining a free market economy required a thousand times more paperwork than a Louis XIV-style absolutist monarchy. (p. 8-9)

The death knell for silver's monetary role was the end of the Franco-Prussian war, when Germany extracted an indemnity of £200 million in gold from France and used it to switch to a gold standard. With Germany now joining Britain, France, Holland, Switzerland, Belgium, and others on a gold standard, the monetary pendulum had swung decisively in favor of gold, leading to individuals and nations worldwide who used silver to witness a progressive loss of their purchasing power and a stronger incentive to shift to gold. India finally switched from silver to gold in 1898, while China and Hong Kong were the last economies in the world to abandon the silver standard in 1935.

Nero, who ruled from 54–68 AD, had found the formula to solve this, which was highly similar to Keynes's solution to Britain's and the U.S.'s problems after World War I: devaluing the currency would at once reduce the real wages of workers, reduce the burden of the government in subsidizing staples, and provide increased money for financing other government expenditure. The aureus coin was reduced from 8 to 7.2 grams, while the denarius's silver content was reduced from 3.9 to 3.41g. This provided some temporary relief, but had set in motion the highly destructive self-reinforcing cycle of popular anger, price controls, coin debasement, and price rises, following one another with the predictable regularity of the four seasons.

What is the attraction of central bankers to issuing their own digital currencies? The answer lies in wider access to second-layer money. Recall that the Federal Reserve issues two types of money, wholesale reserves for private sector banks and retail cash for people. In order to provide monetary stimulus, the Fed issues reserves and hopes that private sector banks will use those reserves to circulate third-layer deposits into the economy by lending money. With a CBDC, the Fed could issue second-layer money directly to people in the form of digital helicopter money; the phrase “helicopter money” comes from Milton Friedman, who in 1969 provided the imagery of dropping cash out of a helicopter in order to stimulate economic demand.

In this Chautauqua I would like not to cut any new channels of consciousness but simply dig deeper into old ones that have become silted in with the debris of thoughts grown stale and platitudes too often repeated. “What’s new?” is an interesting and broadening eternal question, but one which, if pursued exclusively, results only in an endless parade of trivia and fashion, the silt of tomorrow. I would like, instead, to be concerned with the question “What is best?,” a question which cuts deeply rather than broadly, a question whose answers tend to move the silt downstream. There are eras of human history in which the channels of thought have been too deeply cut and no change was possible, and nothing new ever happened, and “best” was a matter of dogma, but that is not the situation now. Now the stream of our common consciousness seems to be obliterating its own banks, losing its central direction and purpose, flooding the lowlands, disconnecting and isolating the highlands and to no particular purpose other than the wasteful fulfillment of its own internal momentum. Some channel deepening seems called for.

In retrospect, the major difference between World War I and the previous limited wars was neither geopolitical nor strategic, but rather, it was monetary. When governments were on a gold standard, they had direct control of large vaults of gold while their people were dealing with paper receipts of this gold. The ease with which a government could issue more paper currency was too tempting in the heat of the conflict, and far easier than demanding taxation from the citizens. Within a few weeks of the war starting, all major belligerents had suspended gold convertibility, effectively going off the gold standard and putting their population on a fiat standard, wherein the money they used was government-issued paper that was not redeemable for gold.

The three terms of Federalist rule had been full of dazzling accomplishments that Republicans, with their extreme apprehension of federal power, could never have achieved. Under the tutelage of Washington, Adams, and Hamilton, the Federalists had bequeathed to American history a sound federal government with a central bank, a funded debt, a high credit rating, a tax system, a customs service, a coast guard, a navy, and many other institutions that would guarantee the strength to preserve liberty. They activated critical constitutional doctrines that gave the American charter flexibility, forged the bonds of nationhood, and lent an energetic tone to the executive branch in foreign and domestic policy. Hamilton, in particular, bound the nation through his fiscal programs in a way that no Republican could have matched. He helped to establish the rule of law and the culture of capitalism at a time when a revolutionary utopianism and a flirtation with the French Revolution still prevailed among too many Jeffersonians. With their reverence for states’ rights, abhorrence of central authority, and cramped interpretation of the Constitution, Republicans would have found it difficult, if not impossible, to achieve these historic feats. Hamilton

By the summer of 1791, after his victories in his skirmishes with Jefferson and Madison over public credit, assumption, and a central bank, Hamilton had attained the summit of his power. Such stellar success might have bred an intoxicating sense of invincibility. But his vigorous reign had also made him the enfant terrible of the early republic, and a substantial minority of the country was mobilized against him. This should have made him especially watchful of his reputation. Instead, in one of history’s most mystifying cases of bad judgment, he entered into a sordid affair with a married woman named Maria Reynolds that, if it did not blacken his name forever, certainly sullied it. From the lofty heights of statesmanship, Hamilton fell back into something reminiscent of the squalid world of his West Indian boyhood. Philadelphia

Bitcoin is a dumb network supporting really smart devices, and that is an incredibly powerful concept because bitcoin pushes all of the intelligence to the edge. It doesn’t care if the bitcoin address is the address of a multimillionaire, the address of a central bank, the address of a smart contract, the address of a device, or the address of a human. It doesn’t know. It doesn’t care if the transaction is carrying lots of money or not much money at all. It doesn’t care if the address is in Kuala Lumpur or downtown New York. It doesn’t know, it doesn’t care.​ It moves money from one address to another based on a simple locking script. And that means that if you want to build a new application on top of bitcoin, you can upgrade the devices and you can build an application. You don’t need to ask for anyone’s permission to innovate. ​ ​Write the app, launch it on your endpoint, and bitcoin will route it, because bitcoin is a dumb network. That is the power of innovation on the internet. It’s innovation without permission. It’s innovation without central approval. It’s innovation without a broad network upgrade. And that means bitcoin is not a specific financial network. It’s not a financial network for large transactions or small transactions, fast transactions or slow transactions. It’s whatever you want to use it for, based upon what you choose to do at the endpoint.

I remember when we found the first population of living Cerion agassizi in central Eleuthera. Our hypothesis of Cerion's general pattern required that two predictions be affirmed (or else we were in trouble): this population must disappear by hybridization with mottled shells toward bank-interior coasts and with ribby snails toward the bank-edge. We hiked west toward the bank-interior and easily found hybrids right on the verge of the airport road. We then moved east toward the bank-edge along a disused road with vegetation rising to five feet in the center between the tire paths. We should have found our hybrids but we did not. The Cerion agassizi simply stopped about two hundred yards north of our first ribby Cerion. Then we realized that a pond lay just to our east and that ribby forms, with their coastal preferences, might not favor the western side of the pond. We forded the pond and found a classic hybrid zone between Cerion agassizi and ribby Cerions. (Ribby Cerion had just managed to round the south end of the pond, but had not moved sufficiently north along the west side to establish contact with C. agassizi populations.) I wanted to shout for joy. Then I thought, "But who can I tell; who cares?" And I answered myself, "I don't have to tell anyone. We have just seen and understood something that no one has ever seen and understood before. What more does a man need?

The denarius was the silver coin that traded at the time of the Roman Republic, containing 3.9 grams of silver, while gold became the most valuable money in the civilized areas of the world at the time and gold coins were becoming more widespread. Julius Caesar, the last dictator of the Roman Republic, created the aureus coin, which contained around 8 grams of gold and was widely accepted across Europe and the Mediterranean, increasing the scope of trade and specialization in the Old World. Economic stability reigned for seventy-five years, even through the political upheaval of his assassination, which saw the Republic transformed into an Empire under his chosen successor, Augustus. This continued until the reign of the infamous emperor Nero, who was the first to engage in the Roman habit of “coin clipping,” wherein the Emperor would collect the coins of the population and mint them into newer coins with less gold or silver content.

It was in the city-states that humans could live with the freedom to work, produce, trade, and flourish, and that was to a large extent the result of these city-states adopting a sound monetary standard. It all began in Florence in 1252, when the city minted the florin, the first major European sound coinage since Julius Caesar's aureus. Florence's rise made it the commercial center of Europe, with its florin becoming the prime European medium of exchange, allowing its banks to flourish across the entire continent. Venice was the first to follow Florence's example with its minting of the ducat, of the same specifications as the florin, in 1270, and by the end of the fourteenth century more than 150 European cities and states had minted coins of the same specifications as the florin, allowing their citizens the dignity and freedom to accumulate wealth and trade with a sound money that was highly salable across time and space, and divided into small coins, allowing for easy divisibility.

The great irony, then, is that the nation’s most famous modern conservative economist became the father of Big Government, chronic deficits, and national fiscal bankruptcy. It was Friedman who first urged the removal of the Bretton Woods gold standard restraints on central bank money printing, and then added insult to injury by giving conservative sanction to perpetual open market purchases of government debt by the Fed. Friedman’s monetarism thereby institutionalized a régime which allowed politicians to chronically spend without taxing. Likewise, it was the free market professor of the Chicago school who also blessed the fundamental Keynesian proposition that Washington must continuously manage and stimulate the national economy. To be sure, Friedman’s “freshwater” proposition, in Paul Krugman’s famous paradigm, was far more modest than the vast “fine-tuning” pretensions of his “salt-water” rivals. The saltwater Keynesians of the 1960s proposed to stimulate the economy until the last billion dollars of potential GDP was realized; that is, they would achieve prosperity by causing the state to do anything that was needed through a multiplicity of fiscal interventions. By contrast, the freshwater Keynesian, Milton Friedman, thought that capitalism could take care of itself as long as it had precisely the right quantity of money at all times; that is, Friedman would attain prosperity by causing the state to do the one thing that was needed through the single spigot of M1 growth.

The easiest way to run developmentally efficient finance continues to be through a banking system, because it is banks that can most easily be pointed by governments at the projects necessary to agricultural and industrial development. Most obviously, banks respond to central bank guidance. They can be controlled via rediscounting loans for exports and for industrial upgrading, with the system policed through requirements for export letters of credit from the ultimate borrowers. The simplicity and bluntness of this mechanism makes it highly effective. Bond markets, and particularly stock markets, are harder for policymakers to control. The main reason is that it is difficult to oversee the way in which funds from bond and stock issues are used. It is, tellingly, the capacity of bank-based systems for enforcing development policies that makes entrepreneurs in developing countries lobby so hard for bond, and especially stock, markets to be expanded. These markets are their means to escape government control. It is the job of governments to resist entrepreneurs’ lobbying until basic developmental objectives have been achieved. Equally, independent central banks are not appropriate to developing countries until considerable economic progress has been made.

Making money in the markets is tough. The brilliant trader and investor Bernard Baruch put it well when he said, “If you are ready to give up everything else and study the whole history and background of the market and all principal companies whose stocks are on the board as carefully as a medical student studies anatomy—if you can do all that and in addition you have the cool nerves of a gambler, the sixth sense of a clairvoyant and the courage of a lion, you have a ghost of a chance.” In retrospect, the mistakes that led to my crash seemed embarrassingly obvious. First, I had been wildly overconfident and had let my emotions get the better of me. I learned (again) that no matter how much I knew and how hard I worked, I could never be certain enough to proclaim things like what I’d said on Wall $ treet Week: “There’ll be no soft landing. I can say that with absolute certainty, because I know how markets work.” I am still shocked and embarrassed by how arrogant I was. Second, I again saw the value of studying history. What had happened, after all, was “another one of those.” I should have realized that debts denominated in one’s own currency can be successfully restructured with the government’s help, and that when central banks simultaneously provide stimulus (as they did in March 1932, at the low point of the Great Depression, and as they did again in 1982), inflation and deflation can be balanced against each other. As in 1971, I had failed to recognize the lessons of history. Realizing that led me to try to make sense of all movements in all major economies and markets going back a hundred years and to come up with carefully tested decision-making principles that are timeless and universal. Third, I was reminded of how difficult it is to time markets. My long-term estimates of equilibrium levels were not reliable enough to bet on; too many things could happen between the time I placed my bets and the time (if ever) that my estimates were reached. Staring at these failings, I realized that if I was going to move forward without a high likelihood of getting whacked again, I would have to look at myself objectively and change—starting by learning a better way of handling the natural aggressiveness I’ve always shown in going after what I wanted. Imagine that in order to have a great life you have to cross a dangerous jungle. You can stay safe where you are and have an ordinary life, or you can risk crossing the jungle to have a terrific life. How would you approach that choice? Take a moment to think about it because it is the sort of choice that, in one form or another, we all have to make.

Paul Theroux on Blogging, Travel Writing, and Three Cups of Tea Speaking of books that contain an element of travel, Greg Mortenson's bestseller about Central Asia was in the news recently. Were you surprised by the allegations that Three Cups of Tea contained fabrications? No, I wasn't. One of the things The Tao of Travel shows is how unforthcoming most travel writers are, how most travelers are. They don't tell you who they were traveling with, and they're not very reliable about things that happened to them. For example, everyone loved John Steinbeck's book Travels With Charley. Turns out he didn't travel alone, his wife kept meeting him, yet she was never mentioned in the book. Steinbeck didn't go to all the places he mentioned, nor did he meet all the people he said he met. In other words, Travels With Charley is fiction, or at least half-fiction. As for Three Cups of Tea, I think that philanthropists and humanitarians are even less forthcoming about what they do. I guess this guy did build a couple of schools in Afghanistan, but a self-promoting humanitarian is not someone I have a great deal of trust or belief in. I lived for six years in Africa and I've been to Africa numerous times since then. People build schools for their own reasons—not to improve a country. The people I've known who've done great things of that type—you know, building hospitals, running schools—are very humble people. They give their lives to the project. Missionaries get a bad rap, but I've known missionaries in Africa who were very self-sacrificing and humble and who did great things. They ran schools, hospitals, libraries; they helped people. Some wrote dictionaries and translated languages that hadn't been written down. I saw a lot of missionaries in Africa that were doing that, and you would never know their names; they came and did their work, and now they're buried there. Are there travel books out there that feel especially honest to you? Many of the books I quote in The Tao of Travel feel honest. One of them, really the most heartfelt, is Christ Stopped at Eboli by Carlo Levi. Peter Matthiessen's The Snow Leopard is a very honest book. Jan Morris has written numerous books, and you can take what she says to the bank. But there are some that just don't feel right. Bruce Chatwin never rang true to me. Bill Bryson said that he would take a couple of people and make them into one composite character. Well, that's what novelists do. If you're a travel writer you have to stick to the facts.

No revolution can be successful without organization and money. "The downtrodden masses" usually provide little of the former and none of the latter. But Insiders at the top can arrange for both.   What did these people possibly have to gain in financing the Russian Revolution? What did they have to gain by keeping it alive and afloat, or, during the 1920's by pouring millions of dollars into what Lenin called his New Economic Program, thus saving the Soviets from collapse?   Why would these "capitalists" do all this? If your goal is global conquest, you have to start somewhere. It may or may not have been coincidental, but Russia was the one major European country without a central bank. In Russia, for the first time, the Communist conspiracy gained a geographical homeland from which to launch assaults against the other nations of the world. The West now had an enemy.   In the Bolshevik Revolution we have some of the world's richest and most powerful men financing a movement which claims its very existence is based on the concept of stripping of their wealth men like the Rothschilds, Rockefellers, Schiffs, Warburgs, Morgans, Harrimans, and Milners. But obviously these men have no fear of international Communism. It is only logical to assume that if they financed it and do not fear it, it must be because they control it. Can there be any other explanation that makes sense? Remember that for over 150 years it has been standard operating procedure of the Rothschilds and their allies to control both sides of every conflict. You must have an "enemy" if you are going to collect from the King. The East-West balance-of-power politics is used as one of the main excuses for the socialization of America. Although it was not their main purpose, by nationalization of Russia the Insiders bought themselves an enormous piece of real estate, complete with mineral rights, for somewhere between $30 and $40 million.   ----  

To the untrained eye, the Wall Street people who rode from the Connecticut suburbs to Grand Central were an undifferentiated mass, but within that mass Danny noted many small and important distinctions. If they were on their BlackBerrys, they were probably hedge fund guys, checking their profits and losses in the Asian markets. If they slept on the train they were probably sell-side people—brokers, who had no skin in the game. Anyone carrying a briefcase or a bag was probably not employed on the sell side, as the only reason you’d carry a bag was to haul around brokerage research, and the brokers didn’t read their own reports—at least not in their spare time. Anyone carrying a copy of the New York Times was probably a lawyer or a back-office person or someone who worked in the financial markets without actually being in the markets. Their clothes told you a lot, too. The guys who ran money dressed as if they were going to a Yankees game. Their financial performance was supposed to be all that mattered about them, and so it caused suspicion if they dressed too well. If you saw a buy-side guy in a suit, it usually meant that he was in trouble, or scheduled to meet with someone who had given him money, or both. Beyond that, it was hard to tell much about a buy-side person from what he was wearing. The sell side, on the other hand, might as well have been wearing their business cards: The guy in the blazer and khakis was a broker at a second-tier firm; the guy in the three-thousand-dollar suit and the hair just so was an investment banker at J.P. Morgan or someplace like that. Danny could guess where people worked by where they sat on the train. The Goldman Sachs, Deutsche Bank, and Merrill Lynch people, who were headed downtown, edged to the front—though when Danny thought about it, few Goldman people actually rode the train anymore. They all had private cars. Hedge fund guys such as himself worked uptown and so exited Grand Central to the north, where taxis appeared haphazardly and out of nowhere to meet them, like farm trout rising to corn kernels. The Lehman and Bear Stearns people used to head for the same exit as he did, but they were done. One reason why, on September 18, 2008, there weren’t nearly as many people on the northeast corner of Forty-seventh Street and Madison Avenue at 6:40 in the morning as there had been on September 18, 2007.

[Hyun Song Shin] most accurately portrayed the state of the global economy. 'I'd like to tell you about the Millennium Bridge in London,' he began…'The bridge was opened by the queen on a sunny day in June,' Shin continued. 'The press was there in force, and many thousands of people turned up to savor the occasion. However, within moments of the bridge's opening, it began to shake violently.' The day it opened, the Millennium Bridge was closed. The engineers were initially mystified about what had gone wrong. Of course it would be a problem if a platoon of soldiers marched in lockstep across the bridge, creating sufficiently powerful vertical vibration to produce a swaying effect. The nearby Albert Bridge, built more than a century earlier, even features a sign directing marching soldiers to break step rather than stay together when crossing. But that's not what happened at the Millennium Bridge. 'What is the probability that a thousand people walking at random will end up walking exactly in step, and remain in lockstep thereafter?' Shin asked. 'It is tempting to say, 'Close to Zero' ' But that's exactly what happened. The bridge's designers had failed to account for how people react to their environment. When the bridge moved slightly under the feet of those opening-day pedestrians, each individual naturally adjusted his or her stance for balance, just a little bit—but at the same time and in the same direction as every other individual. That created enough lateral force to turn a slight movement into a significant one. 'In other words,' said Shin, 'the wobble of the bridge feeds on itself. The wobble will continue and get stronger even though the initial shock—say, a small gust of wind—had long passed…Stress testing on the computer that looks only at storms, earthquakes, and heavy loads on the bridge would regard the events on the opening day as a 'perfect storm.' But this is a perfect storm that is guaranteed to come every day.' In financial markets, as on the Millennium Bridge, each individual player—every bank and hedge fund and individual investor—reacts to what is happening around him or her in concert with other individuals. When the ground shifts under the world's investors, they all shift their stance. And when they all shift their stance in the same direction at the same time, it just reinforces the initial movement. Suddenly, the whole system is wobbling violently. Ben Bernanke, Mervyn King, Jean-Claude Trichet, and the other men and women at Jackson Hole listened politely and then went to their coffee break.