Literature

“In the fall, do leaves on the trees still change color if no one is there to see them?”

“All things originate from one another, and vanish into one another according to necessity; they give to each other justice and recompense for injustice in conformity with the order of Time.”

• Anaximander

Unproductive credit creation (for non-GDP transactions) will result in asset price inflation, bursting bubbles and banking crises as well as resource misallocation and dislocation. In contrast credit used for the production of new goods and services, or to enhance productivity, is productive credit creation that will deliver non-inflationary

Little Fly,

Thy summer’s play

My thoughtless hand

Has brushed away.

Am not I

A fly like thee?

Or art not thou

A man like me?

For I dance

And drink, and sing,

Till some blind hand

Shall brush my wing…

William Blake

Banks decide where to allocate credit in the economy. The incentives that they face often lead them to favour lending against collateral, or existing assets, rather than lending for investment in production. As a result, new money is often more likely to be channeled into property and financial speculation than to small businesses and

Last July I read a book about the Great Depression. In it they described a carnival tent, kept at arm's length from the others, where men would gather at night. And they would peer through a gauzy curtain to watch a woman lie on a fainting couch and await the coming dawn. The men could not make out her face, or even if she was truly beautiful, but

“Violence is the last refuge of the incompetent.”

Asimov

But no one has ever started over from scratch by devising a wholly new conceptual structure, an entirely new vessel. Why? Because we cannot step outside of our own thought. We think in terms of the conceptual structure that we happen to have. Thought changes from within, step by step, in the harsh and continuous confrontation with its object:

Numbers, techniques, and predictions are useful for suggesting, testing, confirming, and putting discoveries to use. But there is nothing technical about the content of the discoveries. The universe does not revolve around the Earth. All the matter that surrounds us is just made up of protons, electrons, and neutrons. There are one hundred billion