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Joe Kelley Administrator
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Defunct Economic Theory and Doomed Policies by Gary North http://www.lewrockwell.com/north/north487.html I think that the above is another case of 'Gold Bug Fever'. I can try to explain: The ‘theory’ intends to justify the expediency of utilizing Gold as currency. In the free market, the theory suggests, Gold will be currency. That is hog wash. The internet is a working example of the free market and people can and are using gold as money. There are very few people, if anyone at all, who use gold as currency. E-Gold is an example of internet free market usage of gold as money; meaning gold used to store value). People then use, in the free market, electronic transfers of value whereby the title or ownership of the stored value in the stored gold is used as currency. The gold does not move around and the gold is therefore not currency. That is an example of gold, in the free market, being used as money. If the gold bug theorists were anything but shovelers of bull feces, then, their free market theories would have already been proven out in the free market that has existed for some time now in networked commerce called ‘The Internet’. Here is a quote: “Recessions are always the result of a prior bank monetary inflation.” I call that misdirection.
What is the point? I think the point has always been: Point the finger at them. How, exactly, do the Gold Bugs intend to ‘push’ their Gold Bug theories into practice? Blame the workers is a current theme, a present them, and a theme of past Gold Bugs throughout history. I’ll read the rest of the Gold Bug ‘wisdom’ for any possible clue as to how the bad guys can be avoided and how the good guys can get on with the business of doing whatever the good guys do. I’m expecting nothing because the past does not dictate the future. The past does suggest that the article linked will not answer any questions; rather - it will point fingers. Imagine a Fed or other currency monopolists (not necessarily the bad guys if the currency monopoly is monopolized freely, voluntarily, honestly, and transparently in direct competition with any other’s aspiring to be the current currency monopolist), imagine the Fed printing up reams, truck loads, and boat loads of currency to be given to Solar panel and electric car makers for the promise that the solar panel and electric car makers make solar panels and electric cars only. Imagine for example that the fed currency monopoly money that was spent on all those nuclear bombs, conventional bombs, black ops budget items, air craft carriers, biochemical munitions, boots, tanks, guns, ammo, etc. and imagine that half that money (some amount higher than one trillion dollars), half that monopoly money, turned into solar panels and electric cars on the shelf to be sold for profit by the solar panel and the electric car companies. Am I describing a recession that is caused by ‘prior bank monetary inflation’? The answer is no. I am describing the power of currency to produce items that produce more power, jobs, and the power to produce more power is transferred to the individuals who purchase the Solar Panels and the Electric cars. Imagine, please, having no gasoline bill whatsoever and imagine if you consider that to be a ‘recession’. Oh yea; you don’t have an electric bill either. Does that sound like a ‘recession’? What will you do with all the ‘savings’ (not actually savings, rather, less cost and therefore more opportunity to purchase, invest, consume, and otherwise be happy)? What will you do with the currency you can use instead of spending your currency on gasoline and electricity (both are automatically supplied by the sun once the solar panels are up and running and paid for)? Here is a hint: You can buy more solar panels and buy hydrogen generators which can eliminate the natural gas cost. Now what do you do with the currency that is not longer required to be spent on gasoline, electricity, and natural gas (or propane)? Is this looking like a ‘recession’ to you? What do you do with your currency that no longer has to be spent on gasoline, electricity, and natural gas (or propane)? I’m going to suggest: Suppose that you’re the only one on the block who has managed to buy the Solar Panels, the Electric Car, and the Hydrogen power units. Suppose you buy more Solar Panels and sell electricity and hydrogen to each of your four neighbors at half the cost of gasoline (if your neighbors agree to buy an electric car), half the cost of electricity from the power company (the central bankers of electric power), and half the cost of propane (for hydrogen instead of propane)? What are you going to do with the currency ‘income’ from your four neighbors? What are your neighbors going to do with the ‘half-off’ extra currency they get to spend because their costs of electricity, gasoline, and propane (natural gas) are cut in half? Here is a guess: Your neighbors may buy their own solar panels and stop sending you (the new central banker of the neighborhood) currency because the too want to get in on a ‘piece of the action’ supplied by the biggest central banker known as the SUN. Why do the ‘Economists’ ignore my requests for debate? Some of us are most certainly IGNORANT. I am. |
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Joe Kelley Administrator
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I am ignorant as to how much currency has be spent on the military and how many Solar Panels and how many Electric Cars could have been created instead. I am ignorant because the military spent the money and the military didn't invest the money. I do know that One Air Craft Carrier and One Nuclear Missile ADDS further costs while one Solar Panel and One Electric Car subtracts costs i.e. the cost of electricity and the cost of gasoline that are costs spent by individuals producers of wealth. Furthermore: One Air Craft Carrier and One Nuclear Missile cost much more than One Solar Panel and One Electric Car. One Air Craft Carrier (which can now be taken out with one missile from any of a number of potential enemies who do not like American Aggressive Invasion of their homes), One Air Craft Carrier cost nearly one million times the cost of one Solar Panel, or more, and therefore the same expense spent on One Air Craft Carrier (obsolete in modern warfare), is WORTH, at least ONE MILLION SOLAR PANELS. One Air Craft Carrier employs a number of people in the construction, distribution, maintenance, and utilization of One Air Craft Carrier. One Million Solar Panels employ a number of people in the construction, distribution, maintenance, and utilization of One Million Solar Panels. One Air Craft Carrier (if it isn’t taken out with one missile) can spread democracy, ooops, I mean death and destruction far and wide and create even more jobs in reconstructing all the destruction that is spread by One Air Craft Carrier, and, so can a Hurricane – foreigners get man made destruction and reconstruction (minus millions of lives), and domestic populations get to keep their One Air Craft Carrier, the jobs that go with it, and the new jobs overseas. The victims of natural (or man made if the global warming data is accurate) hurricanes at home get to move (minus thousands of lives) and search for new jobs, new homes, in foreign lands (foreign to them). One Million Solar Panels can empower thousands of people with the power of self-sufficiency and free electricity, having, the unique ability to create more Solar Panels which could conceivably spread like democracy from individual to individual until the whole of American is empowered with Solar Panels, at which time, electricity runs like water, cleaner water since less power is being generated by coal burning and uranium burning and oil burning electric plants, and having that over abundance of independent power sources could conceivably spread over seas, in the form of Solar Panels for whatever foreigners agree to pay for Solar Panels, including oil, if we still want oil, since, Electric Cars could conceivably eliminate our ‘so called’ addiction to oil. One Air Craft Carrier redirected into One Million Solar Panels has the capacity to spread independent power generation around the Globe. One Million Solar Panels redirected into One MORE Air Craft Carrier has the capacity to spread nuclear fallout around the Globe. One path is an investment. The other path is ‘saving’, er, 'spending'. What matters, I guess, is the pair of shades propped up in front of your eyes. |
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Joe Kelley Administrator
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http://www.lewrockwell.com/north/north496.html Confessions of a Gold Bug above I tried to read the whole thing but failed. The case against criminals dictating money matters is one thing. The case for any particular currency is something else entirely. One is dictated and the other one works out when the dicks stop dictating. If gold makes for good currency, then, that fact would prove factual. These days I can't see gold coins replacing credit cards. One is efficient and very accurate while the other is a great liability. Which one is which? I can certainly agree that the criminals who dictate money matters cause money trouble - on purpose. I am not a gold bug. Like this: http://www.hti.umich.edu/cgi/t/text/pageviewer-idx?c=labadie;cc=labadie;idno=2916966.0001.001;size=l;frm=frameset;seq=2;view=image;page=root This: http://www.the-portal.org/mutual_banking.htm This: http://tmh.floonet.net/pdf/jwarren.pdf This: http://dwardmac.pitzer.edu/Anarchist_Archives/bright/warren/truecivtoc.html This: http://classicalliberalism.blogspot.com/2006/04/science-of-society-no_10.html This: http://www.lysanderspooner.org/bib_new.htm And this: http://www.perfecteconomy.com/index.html I think the Gold Bugs want their cake and they like eating it too. I think the Gold Bugs want to maintain the steady flow of something for nothing. I think the Gold Bugs have a vested interest in the interest/profit/system and they won't let it go without investing their gold into state securities one way or the other. I sure would like to be proven wrong. I can see a minimal State using gold as money. That is fine so long as everyone else can use whatever currency (even whiskey) that works best under the current conditions. The current conditions include penalties for using anything other than the legal tender. |
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Joe Kelley Administrator
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Free Market Über AllesThe executive shrugged and said that river dumping was the most cost-effective way of removing the mill’s wastes. If the company had to absorb the additional expense of having to clean up after itself, it might not be able to maintain its competitive edge and would then have to go out of business or move to a cheaper labor market, resulting in a loss of jobs for the local economy. |
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Joe Kelley Administrator
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Bad first step leads to worse second step? |
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Joe Kelley Administrator
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Austrian versu Keynesianism false front exposed |
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