Famous Deutsch Quotes

Sparta has no philosophers. That’s because the job of a philosopher is to understand things better, which is a form of change, so they don’t want it. Another difference: they don’t honour living poets, only dead ones. Why? Because dead poets don’t write anything new, but live ones do. A third difference: their education system is insanely harsh; ours is famously lax. Why? Because they don’t want their kids to dare to question anything, so that they won’t ever think of changing anything. How

The “German problem” after 1970 became how to keep up with the Germans in terms of efficiency and productivity. One way, as above, was to serially devalue, but that was beginning to hurt. The other way was to tie your currency to the deutsche mark and thereby make your price and inflation rate the same as the Germans, which it turned out would also hurt, but in a different way. The problem with keeping up with the Germans is that German industrial exports have the lowest price elasticities in the world. In plain English, Germany makes really great stuff that everyone wants and will pay more for in comparison to all the alternatives. So when you tie your currency to the deutsche mark, you are making a one-way bet that your industry can be as competitive as the Germans in terms of quality and price. That would be difficult enough if the deutsche mark hadn’t been undervalued for most of the postwar period and both German labor costs and inflation rates were lower than average, but unfortunately for everyone else, they were. That gave the German economy the advantage in producing less-than-great stuff too, thereby undercutting competitors in products lower down, as well as higher up the value-added chain. Add to this contemporary German wages, which have seen real declines over the 2000s, and you have an economy that is extremely hard to keep up with. On the other side of this one-way bet were the financial markets. They looked at less dynamic economies, such as the United Kingdom and Italy, that were tying themselves to the deutsche mark and saw a way to make money. The only way to maintain a currency peg is to either defend it with foreign exchange reserves or deflate your wages and prices to accommodate it. To defend a peg you need lots of foreign currency so that when your currency loses value (as it will if you are trying to keep up with the Germans), you can sell your foreign currency reserves and buy back your own currency to maintain the desired rate. But if the markets can figure out how much foreign currency you have in reserve, they can bet against you, force a devaluation of your currency, and pocket the difference between the peg and the new market value in a short sale. George Soros (and a lot of other hedge funds) famously did this to the European Exchange Rate Mechanism in 1992, blowing the United Kingdom and Italy out of the system. Soros could do this because he knew that there was no way the United Kingdom or Italy could be as competitive as Germany without serious price deflation to increase cost competitiveness, and that there would be only so much deflation and unemployment these countries could take before they either ran out of foreign exchange reserves or lost the next election. Indeed, the European Exchange Rate Mechanism was sometimes referred to as the European “Eternal Recession Mechanism,” such was its deflationary impact. In short, attempts to maintain an anti-inflationary currency peg fail because they are not credible on the following point: you cannot run a gold standard (where the only way to adjust is through internal deflation) in a democracy.

Optimism and reason are incompatible with the conceit that our knowledge is ‘nearly there’ in any sense, or that its foundations are. Yet comprehensive optimism has always been rare, and the lure of the prophetic fallacy strong. But there have always been exceptions. Socrates famously claimed to be deeply ignorant. And Popper wrote: I believe that it would be worth trying to learn something about the world even if in trying to do so we should merely learn that we do not know much…It might be well for all of us to remember that, while differing widely in the various little bits we know, in our infinite ignorance we are all equal. Conjectures and Refutations (1963) Infinite ignorance is a necessary condition for there to be infinite potential for knowledge.

The first out of the gate was The Ethics of Sexual Acts by Kinsey’s friend, René Guyon, a closet French pedophile jurist. The second was American Sexual Behavior and the Kinsey Report, by author/historian David Loth and Kinsey’s lawyer, Morris Ernst, the ACLU attorney. The third book was Sex Habits of American Men, a collection of essays, edited by journalist Albert Deutsch and written by world famous and stunningly foolish academicians.