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now I'm sad I didn't go to a Steiner school - I like fairies.
You would've had gnomes too, from the looks of the Steiner says page.
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These lower animal orders only become complete, as it were, through the fact that gnomes exist... It would be absolutely impossible for us to have a brain, if the world were not so ordered that gnomes and undines can exist.
For some reason the 'read in full context' wasn't working, but I don't see how it could explain that. And a quick google search revealed it does apparently relate to a toy-type object, either a sort of malevolent elf-on-the-self or a benevolent spiritual plaything.