[ExI] Fwd: How slow is capitalism?

[Rafal Smigrodzki]

---------- Forwarded message ----------
From: Rafal Smigrodzki <rafal.smigrodzki at gmail.com>
Date: Sat, Apr 30, 2011 at 1:02 AM
Subject: Re: [ExI] How slow is capitalism?
To: Jones Murphy <morphy at alumni.caltech.edu>


On Sat, Apr 30, 2011 at 12:28 AM, Jones Murphy
<morphy at alumni.caltech.edu> wrote:
> You can find websites which tell you that the planet is 6000 years
> old(a belief held by the overwhelming majority of American
> conservatives). That doesn't make it true. Try not to be so gullible
> about the things you read on the internet. Let's say Mieses'
> dishonest(if not outright insane) dismissal of the wild boom-and-bust
> cycles which preceded central banking is true. If so, why aren't the
> numerous countries with no central banks or ineffective central banks
> constantly bleeding capital to the countries with central banks, for
> the last few centuries and continuing today?

### There are are the situations where you don't have a central bank
because you are a mess - savages running around with sharp sticks (or
nowadays Kalashnikovs) don't even have ATMs, much less a central bank,
and obviously any pitiful capital that the local warlords accumulate
soon goes to a Swiss bank.

The other, more interesting situation, is due to Copernicus' law
(a.k.a. Gresham's law) applied to international relationships. If you
have a large group of counterfeiters, who use military force to
prevent gold monetization in most of the world, any small country
trying to use a gold standard currency would be at a some disadvantage
- their citizens would still have to accept fiat money in any
international trade (and all countries have to trade internationally)
and this would deplete their money supply.

----------------------------

 Why is so much money
> continuing to flee freedom and stability for instability and
> megafraud?

### Where do you see freedom in the world?

---------------------------

 Why execute 80% plus of the world's transactions in a
> fraudulent currency, and virtually 100% in some central bank-managed
> currency or other?

### The same reason why you can't live without using tax-paid
infrastructure in a country where all infrastructure is owned by the
government. If the fraudulent currency is supported by a massive
military force, you can't just ignore it.

-------------------------

Why not more transactions in privately issued
> currencies, gold and what not?

### Legal tender laws and the like. Have you ever had Federal
government agents enter your home and ask you questions? I had the
experience. Didn't like it, even though it didn't have anything to do
with money.

-------------------------

Why has the reign of an Ayn Rand
> disciple at the Fed, with the most Mieses-friendly policies since the
> ones which helped precipitate the Great Depression, ended in the
> greatest financial crisis since the Great Depression?

### The great depression was precipitated by interventionist policy of
Hoover, further compounded by FDR. Mises-like thinking ended with the
last honest US president, Calvin Coolidge.

Rafal



-- 
Rafal Smigrodzki, MD-PhD
Chief Clinical Officer,
Gencia Corporation
706 B Forest St.

Charlottesville, VA 22903

tel: (434) 295-4800

fax: (434) 295-4951



This electronic message transmission contains information from the
biotechnology firm of Gencia Corporation which may be confidential or
privileged. The information is intended to be for the use of the
individual or entity named above. If you are not the intended
recipient, be aware that any disclosure, copying, distribution or use
of the contents of this information is prohibited. If you have
received this electronic transmission in error, please notify us by
telephone (434-295-4800) or by electronic mail
(fportell at genciabiotech.com) immediately.