M K,
> I enjoyed your post and found a relevant link you might find helpful:
> Right on!
Nick:
What I find amazing is the free market being coerced to death and near
death in the Soviet Union was still able to get those long bread lines
together so the supply and demand of bread was met. The natural exchanges
between people is like the force of gravity, and to mess with these free market
natural exchanges between social animals is like messing with planetary orbits.
Sadly, mass starvations occasionally happened as the Soviet Union
government
interfered. Unfortunate that socialist mentalities led to full blown communism
in that government, and physically coerced people's livelihoods to extinction
at times.
These kinds of economic systems see no value and stick to failed algorithms.
People reasoning and using the purchasing power in their immediate
experience
can account for price changes and find were their dollar can be used best. The
consumer
demanding goods can signal shifts to producers to invest more for future gains
as the
profit comes in to provide for these futures, but as savings by consumers occur
the
shift back to present gains can take place in the form of lower prices as
demands drop.
Ivory tower Keynesians and other socialists economists are mind-boggled by
people's
preferences, and yet they still use the same flawed approach. They
artificially lower interest
rates coercing false signals into the market to invest in the futures. Yet
meanwhile people
are trying to save money - too much debt. Keynesians are always boggled by
savings and
actually call it "hoarding". That's their official term. They only want to
see spending, and
lots of it. Yet as consumers have been saving the statist economic
intellectuals have been
trying to reverse this savings trend. Cause it means the economy will actually
get rid of
malinvestments, jobs will shift to new profitable markets, and the sound
economy will
return, but they fear their "specialness" will be lost. They need to feel as
if they are
doing something to help, but they aren't. They are prolonging the suffering by
their interference.
The free market is indicating save, but the government therefore is trying
to counter
what obviously needs to happen with monetary inflation. This means the
government is going
into default for any real business, not a coercive territory monopoly
institution, would go bankrupt,
but since the government can't go into bankrupt and consequently sell off it's
good investments
to other agencies and flush out it's malinvestments (poor credit; government
debt), then the
government defaults via monetary inflation (printing money out of thin air).
It coercively ruins
the purchasing power of the dollar with government backed legal tender laws.
But as noted with the Soviet Union, sometimes the free market does buckle
as North Korea,
in their soon to be dynastic communist regime shift, experiences periodic mass
starvations.
Thieves and murderers like to go down to the market for easy cash and apples,
even though
they could have been more just in their life and tried to work, negotiate, and
reason with people
instead.
Nick
P.S. glad to meet you M K, and good to see you too Platt and Ron. :-)
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