Liberty Forged

the State has no money of its own, so it has no power of its own. ` Nock

Posts Tagged ‘capitalism’

World Reserve Currency – China says yes.

Posted by Jesse on March 23, 2009

Bernanke: Oh no, no, no. No ones talking about a World Reserve Currency. We can print our way out of this mess.

Barack Obama: Geez, ya know. We’d be taking a stronger lead towards achieveing the goals I set forth during the campaign, but all these setbacks….this crisis, you know, we couldn’t have anticipated it.

Ron Paul: We are going to have a dollar crisis. I ran for Congress in the 70’s because Nixon removed the last remnants of the gold standard and I knew that would lead to disaster. We need to have sound money, move towards a new gold standard and abolish the Federal Reserve. (Also see: The Case for  a Genuine Gold Dollar)

Financial Times: China’s central bank on Monday proposed replacing the US dollar as the international reserve currency with a new global system controlled by the International Monetary Fund.

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whatever neffs

Posted by Jesse on March 14, 2009

if business owners expected “customers” to steal and murder, who would ever open a business?

if i pay for a service i expect what i paid for. if i don’t receive good service, why would i want to continue paying for it?

are you looking forward to your social security check in how ever many decades? i know i’m not. where’s the measure of success? i want to see some competition!

if the government is going to give my money to failed banks, “defense” contractors, jail people who smoke pot and try to prop up economic policies that don’t work, or even “invest” in some broad long-term Obama-vision that no one can seem to explain or agree on, why would i want to pay or invest in such an idea? the problem is, unlike in a free market, what choice do i have? they just take the money. and that’s supposed to be a good example of good government?

and then on top of that we have an organization that tries to rule the market too!

Unnatural Disaster by Thomas Woods

“As with all goods, the supply and demand for lending capital determines the price. If more families are saving or more banks are lending, borrowers don’t have to pay as much to borrow, and interest rates go down. If there’s a rush to borrow or a dearth of lending capital, interest rates go up.”

“Thus the interest rate coordinates production across time. It ensures a compatible mix of market forces: if people want to consume now, businesses respond accordingly; if people want to consume in the future, businesses allocate resources to satisfy that desire. The interest rate can perform this coordinating function only if it is allowed to move freely in response to changes in supply and demand. If the Fed manipulates the interest rate, we should not be surprised by discoordination on a massive scale.”

“The more the Fed inflates, the worse the reckoning will be. Every new wave of artificial credit deforms the capital structure further, making the inevitable bust more severe because so much more capital will have been squandered and so many more resources misallocated.”

Also see:

What is the Free Market by Murray Rothbard

The House Poor by Karen de Coster

And it’s this type of analysis I equate with law and rulers. If a dictator ignores the people’s cries [consumer demand] and continues to press on and oppress, eventually there will be all out war. Dictatorial rule is known for ignoring what people need and want. It destroys prosperity and trust. the ruler is acting in self-interest and is only concerned with the general welfare in so far as it affects self-interest. and the general welfare is defined by whatever the laws are, not what you or I think it may be.

i don’t expect you to agree with me, i don’t expect to change your mind, but if you claim to be able to empathize with “poor” people, or “minorities”, then i expect that one should be able to understand a very simple principle as letting people keep what is rightfully theirs, and not simply say “we’re taking from you for your own good”. you have to be able to convince those people and not just oppress them with your political programs. that’s not a very good long-term strategy to say the least.

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Political Peer Pressure – and Continuity as “Change”

Posted by Jesse on March 13, 2009

“Every state should be laser-focused right now on one issue: jobs, jobs, jobs,”

….”This rejection is less about the people of South Carolina than it is Sanford’s political ambitions,”  said O’Malley, vice chairman of the Democratic Governors Association.

Maybe the vice chairman should go get a real job and stop playing political bully. I wonder what political ambitions he’s talking about? Afraid of a little competition? Of course he is.

South Carolina Rep. James Clyburn, the No. 3 House Democrat, dismissed Sanford’s move as “100 percent political posturing.”

Oh really? And I wonder what Clyburn is getting out of the stimulus? More votes for bringing home the artifical bacon? It sounds to me like these Keynesian schills think Sanford is committing political suicide. So what are they so worried about? Oh right. Jobs. Well, like I said, go get a real job and leave the social engineering to people and out of the reach of political whim and the long arm of the law.

I always look forward to a new installment by Jack Hunter – aka The Southern Avenger – and wasn’t surprised that he dedicated a whole youtube clip to the SC Governnor. I don’t claim to know anything about Mark Sanford and I care nothing for party politics, but I understand very clearly what Hunter is saying and that Sanford has presented himself as a man to be reckoned with. PS- Jindal sucks.

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Washington DC, Austrian Economics, and Destroying Currency

Posted by Jesse on March 12, 2009

What Has Government Done to Our Money?

Rothbard shows precisely how banks create money out of thin air and how the central bank, backed by government power, allows them to get away with it. He shows how exchange rates and interest rates would work in a true free market. When it comes to describing the end of the gold standard, he is not content to describe the big trends. He names names and ferrets out all the interest groups involved.

Tom Woods [Author of Meltdownfree chapter]- We Need Our Heads Examined, say Harvard

In short, the conference was about this: Why do people still think the interaction of free individuals is a superior economic system to one directed by Harvard Ph.D.s like us? …. So by assuming from the outset the very thing that needs to be proven – namely, that the current state of the economy just occurred spontaneously, as the result of wicked market forces – our betters relieve themselves of the need to consider that central banking, a government-established institution, just might have had, you know, a little something to do with what happened. – Reisman –
The Myth that Laissez-Faire is Responsible for Our Present Crisis

Laissez-faire capitalism is a politico-economic system based on private ownership of the means of production and in which the powers of the state are limited to the protection of the individual’s rights against the initiation of physical force. This protection applies to the initiation of physical force by other private individuals, by foreign governments, and, most importantly, by the individual’s own government. This last is accomplished by such means as a written constitution, a system of division of powers and checks and balances, an explicit bill of rights, and eternal vigilance on the part of a citizenry with the right to keep and bear arms. Under laissez-faire capitalism, the state consists essentially just of a police force, law courts, and a national defense establishment, which deter and combat those who initiate the use of physical force. And nothing more.

Ebeling – Human Action as Sixty

“Monetary calculation is the guiding star of action under a system of division of labor,” Mises declared in Human Action. “It is the compass of the man embarking on production.”[1] The significance of the competitive process, as Mises had expressed it in his earlier volume Liberalism, is that it facilitates “the intellectual division of labor that consists in the cooperation of all entrepreneurs, landowners, and workers as producers and consumers in the formation of market prices. But without it, rationality, i.e., the possibility of economic calculation, is unthinkable.”

Richards – Science is as Science Does

I have a bone to pick with Keynesian economists….By what right do I challenge this claim of the economists? I am an experimental physicist by profession. If there is such a thing as empirical science at all, I believe that experimental physics fits the definition, so I have had some experience with it myself. Now I do not dispute that economics is a science. Austrian economists do not dispute that economics is a science; it is just that they understand it to be a logical science, the science of human action.

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Question – what is up?

Posted by Jesse on March 12, 2009

Has this post degenerated? Or are we merely revealing the fundamentals? The nation is confronting the excesses and looking for leadership and concrete solutions to the problems and losses in prosperity and civil liberties that have been exposed – slowly but surely. Do we not need to know the function of government before we can allocate resources to it? The impetus of my arguments drive at the notion that the fundamentals in gov’t and “the economy” are being assumed, but not audited. Which is why people that I listen to for leadership make the claims that these measures we see being proposed by so many (in the three branches of gov’t) are not going to fix the problems but exacerbate them. This is why Ron Paul always stresses that we cannot address these issues without confronting the role of government in our lives. That’s why he is my President, by choice.

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