[ExI] Fwd: How slow is capitalism?

Rafal Smigrodzki rafal.smigrodzki at gmail.com
Sat Apr 30 05:16:42 UTC 2011


---------- 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
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