Entropy: The Defining Characteristic of Global Affairs

Expanding prosperity contributed to the popularity of the doctrine [of harmony of interests] in three different ways. It attenuated competition for markets among producers, since fresh markets were constantly available; it postponed the class issue, with its insistence on the primary importance of equitable distribution, by extending to members of the less prosperous classes some share in the general prosperity; and by creating a sense of confidence in present and future well-being, it encouraged men to believe that the world was ordered on so rational a plan as the natural harmony of interests.1

Politics are made up of two elements — utopia and reality — belonging to two different planes which can never meet. There is no greater barrier to clear political thinking than failure to distinguish between ideas, which are utopia, and institutions, which are reality.2

Stocks are near their all-time highs and show few signs of correcting anytime soon; debt markets appear frothy; the VIX is low—the capital markets are telling us that we’re living in “the best of all possible worlds.”3 Even TV commercials show us people dancing on their decks while telling us “the fun is back!”

But in the real world, for a while now I’ve been nagged by this feeling of entropy in global affairs; that order and institutions are giving way to chaos and ungovernability. (more…)

Favorite Books of 2013

In light of the holiday season and year end, I thought I’d share the best books I read this year.  While most of these weren’t published in 2013—a number of them dutifully collected dust on bookshelves in no less than three apartments until they were summoned—the following eight books stand out as my favorites over the past 12 months. (more…)