Posted by: michaeldavidpower | October 3, 2010

Keynes’s Lament of the Long Term Investor

Finally it is the long-term investor, he who most promotes the public interest, who will in practice come in for most criticism, wherever investment funds are managed by committees or boards or banks. For it is in the essence of his behaviour that he should be eccentric, unconventional and rash in the eyes of average opinion. If he is successful, that will only confirm the general belief in his rashness; and if in the short run he is unsuccessful, which is very likely, he will not receive much mercy. Worldly wisdom teaches that it is better for reputation to fail conventionally than to succeed unconventionally.

John Maynard Keynes
The General Theory of Employment, Interest and Money


  1. Well done, Michael.

    We need to revert to the notion that Money should be a reflection of productivity and creative wealth. The more the USA believes it can simply print more of it without backing it with substantive wealth, the sooner they that country will lose its pre-eminent position in the world.

    Let’s find an alternative ‘world currency’ and that will reveal all.

    • For the next 10 years or so, we will move into ‘limbo-land’ when it comes to reserve currencies. The RMB cannot hope to be a serious ‘reserve currency’ whilst China runs a current account surplus the size it does. But if this were to change – and by 2015 I very much think it might – then the era of the RMB as a reserve currency will begin. Thereafter – say by 2020 – it will be ‘primus inter pares’ with the Dollar and Euro (If the latter still exists!). Big changes lie ahead!

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