In The Financial Sector, Those

A Historian Is Battling All The Time To Remember As Much As Possible.

So Much Of Liberalism In Its Classical Sense Is Taken For Granted In The West Today And Even Disrespected. We Take Freedom For Granted, And Because Of This We Don't Understand How Incredibly Vulnerable It Is.

All Empires Have Depended On Local Legitimacy And Local Collaboration; They Are Not Based Primarily On Coercion. An Imperial Rule That Relies Wholly On Coercion Can't Endure. It's Too Expensive.

For 500 Years The West Patented Six Killer Applications That Set It Apart. The First To Download Them Was Japan. Over The Last Century, One Asian Country After Another Has Downloaded These Killer Apps- Competition, Modern Science, The Rule Of Law And Private Property Rights, Modern Medicine, The Consumer Society And The Work Ethic. Those Six Things Are The Secret Sauce Of Western Civilization.

If The Financial System Has A Defect, It Is That It Reflects And Magnifies What We Human Beings Are Like. Money Amplifies Our Tendency To Overreact, To Swing From Exuberance When Things Are Going Well To Deep Depression When They Go Wrong. Booms And Busts Are Products, At Root, Of Our Emotional Volatility.