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| Joined: | Mon Nov 21st, 2005 |
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I can dig this one:
Vampires, Money, and Economic Cycles
by Bill Walker
Then in a bizarre twist we have to suffer through the story of the Bank of Amsterdam and a 150-year period of perfect banking honesty. No panics, no cheating, no economic cycles, just steady economic progress through revolutions, wars, and disasters of every kind. (Don’t worry, it’s the only known example of such length).
"Perfect Banking Honestly"
That reminds me; I need to cut and paste something I read that really needs to be spread around some more - in my opinion.
This:
It is really nothing but the free market as discussed in economics: if there is free and unlimited competition, no barriers of entry, all actors carry their own costs (etc, etc), then the prices would tend towards the cost of production. This cost really means the investment as well as the return necessary for the investment to take place. This is what economists mean when they say a free market with "perfect information" doesn't allow for profits. There is still return for the producer (he gets a living), but not "profits."
Tucker talked of the free market tending towards price = cost. It doesn't mean all products are sold at the exact amount of directly invested funds in order to produce X, it means products are sold at close to their cost (investment, labor, return).
Per Bylund
From here:
http://www.anarchism.net/forum/board_entry.php?id=11213#p11215
This:
This is what economists mean when they say a free market with "perfect information" doesn't allow for profits. There is still return for the producer (he gets a living), but not "profits." (Per Bylund)
The important thing to understand, in my opinion, is this:
If production during 'perfect information' or even 'perfect banking honesty' for anyone or everyone combined (as a statistic) exceeds consumption (more valuable stuff is made that the valuable stuff consumed), then, purchasing power increases.
I.E. the same number of 'dollars' are chasing around more valuable stuff.
In other words: Everyone Profits.
Last edited on Mon Feb 19th, 2007 03:11 pm by Joe Kelley