Sunday, November 6, 2011

Catallaxy

Hayek derived the word "Catallaxy" (Hayek's suggested Greek construction would be rendered καταλλαξία) from the Greek verb katallasso (καταλλάσσω) which meant not only "to exchange" but also "to admit in the community" and "to change from enemy into friend." http://en.wikipedia.org/wiki/Catallactics

This Sandy and False Foundation

Very few of us realize with conviction the intensely unusual, unstable, complicated, unreliable, temporary nature of the economic organization by which Western Europe has lived for the last half century. We assume some of the most peculiar and temporary of our late advantages as natural, permanent, and to be depended on, and we lay our plans accordingly. On this sandy and false foundation we scheme for social improvement and dress our political platforms, pursue our animosities and particular ambitions, and feel ourselves with enough margin in hand to foster, not assuage, civil conflict in the European family. J.M. Keynes, The Economic Consequences of the Peace

The Duty of Shareholders

"It is the duty of shareholders to periodically suffer losses without complaint"
A Frenchman is self-assured because he regards himself personally, both in mind and body, as irresistibly attractive to men and women. An Englishman is self-assured, as being a citizen of the best-organized state in the world, and therefore as an Englishman always knows what he should do and knows that all he does as an Englishman is undoubtedly correct. An Italian is self-assured because he is excitable and easily forgets himself and other people. A Russian is self-assured just because he knows nothing and does not want to know anything, since he does not believe that anything can be known. The German's self-assurance is worst of all, stronger and more repulsive than any other, because he imagines that he knows the truth—science—which he himself has invented but which is for him the absolute truth.

What Science?

"What science can there be in a matter in which, as in all practical matters, nothing can be defined and everything depends on innumerable conditions, the significance of which is determined at a particular moment which arrives no one knows when?"