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How To Run A Country — 10 Lessons

Marcus Tullius Cicero was marginalized in the Roman senate. Frustrated without real power, Cicero began to write about how government should be run. As Caesar conquered Gaul and subsequently crossed the Rubicon, plunging Rome into civil war, Cicero was writing some of great works of political philosophy. While an accomplished orator and lawyer, Cicero’s most important achievement was his political career and writings.

He asked questions that still resonate today: What is the foundation of a just government? What kind of rule is better? How should a leader behave?

At the time of his writings his political influence had declined. He wrote to a friend: “I used to sit on the deck and hold the rudder of the state in my hands; now there’s scarcely room for me in the bilge.”

“For those who will listen,” Freeman writes, “Cicero still has important lessons to teach. Among these are:

1. There are universal laws that govern the conduct of human affairs.

Cicero would never have thought of this concept of natural law in terms used later by Christians, but he firmly believed that divine rules independent of time and place guarantee fundamental freedoms to everyone and constrain the way in which governments should behave. As the American Founding Fathers, careful students of Cicero, wrote in the Declaration of Independence: “We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable rights, that among these are life, liberty and the pursuit of happiness.”

2. The best form of government embraces a balance of powers.

Even the most noble kings will become tyrants if their reign is unchecked, just as democracy will degrade into mob rule if there are no constraints on popular power. A just government must be founded on a system of checks and balances. Beware the leader who sets aside constitutional rules claiming the need for expediency or security.

3. Leaders should be of exceptional character and integrity.

Those who would govern a country must possess great courage, ability, and resolve. True leaders always put the interest of their nation above their own. As Cicero says, governing a country is like steering a ship, especially when the storm winds begin to blow. If the captain is not able to hold a steady course, the voyage will end in disaster for all.

4. Keep your friends close— and your enemies closer.

Leaders fail when they take their friends and allies for granted. Never neglect your supporters, but even more important, always make sure you know what your enemies are doing. Don’t be afraid to reach out to those who oppose you. Pride and stubbornness are luxuries you cannot afford. (more…)

The Equation That Explains It All

If you were just woken from some form of suspended animation from let’s say 2010 (ancient economic history in today’s terms) then informed of the current state of global political affairs and upheavals, U.S. employment (95+million not,) global currency gyrations, interest rates at not only 0% but some -0%, threats of escalating wars, threats of major confrontational war, GDP of the major global economies not only contracting, but below statistical stagnant, governments, as well as central banks with balance sheets of debt calculated in $TRILLIONS, some in the 10’s of, all financed at near or below 0%, and the Fed is only about a week away from raising rates into the teeth of what can only be called “uncertainty,” and much, much more. (There isn’t enough time, or digital ink to list them all.)

Nobody would be surprised if your first reaction based on your prior acumen (the ancient history of 7 years ago whether it be in stocks, business, or both) would to become immediately concerned that whatever portfolio, or wealth you may have had in the markets, may be worth far less today than when you were first put to sleep. And probably becoming ever smaller as you thought about what you might need to do next in order to preserve any that may be left.

That is, till someone explained to you the markets you went to sleep knowing of – are no longer – and the reality of the markets today you could never have dreamed up. Even if they let you sleep another decade or longer.

Today, the markets you once knew of are better described as the “markets.”

To clear up any confusion as to how, or why, the “markets” can now be at “never before seen in the history of mankind highs” once again after the resounding “NO” vote in Italy, where the entire E.U. experiment is now seriously undermined, and falling apart in real-time (Brexit first, Italy will surely now vote next, etc., etc,) below is the calculation that explains it all.

For under the rules of: If A = B and B = C, then A = C, you now have the magical formula to understand with Einstein like surety today’s ‘markets.”

If you have any doubt to the soundness of this expression, consider the following: 

If a financial crisis appears (A) The central banks will intervene (B)
If the central banks intervene (B) The “markets” go up (C)
Thus, we need more financial chaos (A) To make even more all time “market” highs (C)

(more…)

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