Thanks Telmo


That sheds a little more light on where
you're coming from. I watched those videos with interest and found
the Austrian school fascinating. Apologies in advance for the length
of this post and for the howling errors in reasoning it undoubtedly
contains. I’m just a beginner!



So the Australian school sees the
interest related activities of a central bank to have a distorting
effect on the pool of information available to market participants
and that this distortion is responsible for booms and busts. i.e.
Artificially high interest rates gives investors the impression that
people are saving for future consumption, when in fact they might not
be. And so on. But the central banks are not secretive about the
fluctuations in interest rates they impose, the exact
increases/decreases they make are available and are frequently
reviewed. The reasons they are imposed are out in the open. In other
words, it should be possible to adjust for central bank activity and
invest wisely. Why doesn't that happen?



As far as I can tell, the spectre of
market fundamentalism lurks behind the scenes in the Austrian school.
The view is that the market behaves rationally in the absence of
regulation. It doesn't entertain the idea that human understanding is
inherently distorted and fallible and that errors in judgement arise
quite naturally. I depart from the Austrian school at this point. If
distortion is just part of the human condition then an argument for
regulation re-emerges. Of course, if the central bank is the only
source of distortion then it needs to be gotten rid of. But is it
really a major culprit?
 

Boom bust cycles existed long before
central banks, so they can not be a necessary cause. And we see wild
'boom busts' in decentralized systems like bitcoin. Why? You say the
hope is that it will just 'settle down'. I say it is behaving as any 
decentralized system would. Its acute in bitcoin because it is the
classical fiat currency. It is anchored by nothing but perception of
value and is therefore blown this way and that by the naturally
distorted perceptions of those who participate in it.



Like you I wish the system was more
equitable. But is bitcoin equitable? I don't think so. From its
conception it creates a natural bitcoin aristocracy because as time
goes on it gets harder and harder to mine coins and, as usual, an
individual's ability to gather resources depends on the power they
already have. Rich people can afford bigger and better computers to
crunch numbers, me with my zx81, well … im screwed. And that has
happened. The majority of bit coins are owned by the minority of
participants. If bitcoin were to become a global currency an
oligarchy is already in place to wield injustice upon the 99.9999% of
us. 






Date: Fri, 19 Jul 2013 11:58:47 -0400
Subject: Re: Capitalism : the way of creating wealth OUT OF THIN AIR
From: jami...@gmail.com
To: everything-list@googlegroups.com

Nobody raised the point that we are living in the aura of some obsolete dream 
about a world that is long gone and 'apply' the same words to regulate our 
lives in an advanced (completely changed) world (system) 2-300 years later. The 
world changed.

We are obsolete. 

Nobody 'owns' NATURE, the environment (agricultural(?) and mining(!) products), 
forests, prairies and their ecosystems (from wood to wolves) nor 'water' and 
should not 'sell' those items for profit. It is only the activity to bring them 
about that may charge for reimbursement. Not even the access to it. 
It is not different from 'owning' persons. 
We not only need a new law-construct, we need a new perspective. 
Freedom means to feel free to do ANYTHING without any infringement of  anybody 
else's freedom. 

On Thu, Jul 18, 2013 at 1:15 PM, meekerdb <meeke...@verizon.net> wrote:


  
    
  
  
    On 7/18/2013 2:27 AM, Telmo Menezes
      wrote:

    
    
      Also, it's a funny moment in History to pretend that giving this much
power to governments does not have consequences. What if the economy
is saved but we end up living under a modern global Stasi? This
sounded like "conspiracy theory" stuff a few weeks ago, but what about
now?

My hope is that bitcoin or something like that will finally set us
free from the criminals that have been running the financial systems.
I still believe in technology more than I believe in politics.
    
    

    But it's technology
      that's enabling the global Stasi.  If someone had to actually
      listen to your phonecalls and take notes our privacy would be
      secure.

      

      Brent

    
  





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