Support the comic on
Odds and Ends
It's important to know what you like
21 5, 5:49am
I have said it often that I am against abortion, because I am pro-choice.
I think women are moral agents, and as such have the right to choose for themselves what to do. And exactly why they have the right to choose what to do, they also have to take responsibility for the choices they make. Giving them a get-out-of-jail-free-card that abortion is creates a moral hazard.
And we see that with women being needlessly slutty. If sluts were stuck with the children that they produce as a result of their sinful activities, and if they weren’t subsidized by the government, though welfare programs to single mothers; thou can bet that women would become a lot more responsible and reserved.
2) Real economy vs fictional economy.
I do plan to abolish inflation, and it is actually pretty easy, because inflation is man made and not at all natural as we have been let to believe.
If we just makes fraud illegal then there can’t be inflation, because all inflation is caused by fraud, specifically by the fraud of central banks such as the federal reserve’s constant expansion of the money supply, and of commercial banks fractional reserve lending.
By making all that illegal, and replacing it with a 100% backed gold standard, and a switch to full reserve banking, we won’t see inflation and we also won’t see any finanzialisation.
What we will see is that money will flow to where it is most productive.
I don’t have any problem with interest rates, that is just payment for the delayed gratification. If we choose to consume later and if we take risk in lending it to someone else, we ought to be compensated for it. The money just have to be real to begin with.
3) Intrinsic value
“Value of gold coin is as fictional as numbers in computer. There is no such thing as innate and/or immutable value”
It is intrinsic value that I am talking about here. Gold have intrinsic value, all stuff (real economic goods) have intrinsic value, their value is internal to the thing itself.
The opposite of intrinsic value is extrinsic value, which is when a finansial instrument have its value derived from an external factor such as a guarantee. A T-bill derives its value from the trust and confidence of the US government. How risky it is to poses depends on how likely we think the US is to default.
Because a gold coin have intrinsic value, and not dependent on somebody’s guarantee, it can’t go to zero.
Two other important aspect that we need to understand is the “resale value” and “end user value”
The resale value is how much we can get for it if we sell it to someone else. The end user value is what we can get out of it on its own.
It goes without saying that extrinsic financial instruments have no end user value, we always want them for what is implied they will get us, and not for our own sake. A bond should give us interest and a stock dividends, and if we have enough stocks we might also gain influence.
When we start to gain a controlling interest in a company stocks changes nature, as they go from a simple financial instrument to get dividents and becomes a certificate of ownership of real asset (the company)
For end user value gold have a number of chemical properties that makes it very useful, especially in electronic, and it is also objectively beautiful. That is why it will always be valuable, and thereby also have a resale value.
What we really need to look out for is things that have neither intrinsic nor extrinsic value, such as bitcoin. That is a mayor red flag.
We cannot use it to anything on its own. If nobody else wanted it, it would be Absolutely worthless, and it doesn’t come with a guarantee from anybody. It is simply a floating bunch of numbers worth only what somebody else is willing to pay.
But they are only willing to pay what they pay because they believe that somebody else will pay more later. That makes it a scam by definition.
All economic goods needs to have an end user. Extrensic goods like stocks and bonds are used to park wealth, as a form of delayed gratification and functions as an alternative to cash.
Thou want an example? That is very simply. Modern USA. Just look at the trade imbalance. When it imports more then it exports it overconsumes. That is only possible though finansialisation, the unbacked USD.
As long as the world was on a gold standard nature would force such overconsumption to stop, as America would have simply run out of gold. That was exactly what was close to happening in 1971 when Nixon “closed the gold window” that is ending the foreign central banks right to redeem dollars for gold.
Had the US not defaulted back then, a restructuring would have happened back to something that were sustainable. But thou art right that overconsumption aren’t natural and it can’t happen forever. But it can happen temporarily as a society consumes previously saved resources, that is it drains its reserves.
The financialisation have vastly distorted everything and when the illusion finally breaks the American empire will go down with it, and the world economy would have to be rebuild from scratch.
The problem with kick-the-can-down-the-road is that every time the can is kicked it gets a little bigger and the road is always uphill. Eventually it is going to crush us.
5) Draining the base
“scarcity will raise prices, which will lead either to technological solution or reduction in consumption.”
That is what will happen naturally yes, but finanzialisation twist everything and prevents the normal price discovery mechanism.
As such it can continue far past critical levels, which leads us to cause irrevocable damage to the environment.
The global warming alarmist always claims that their doomsday scenarios demands that we give up more power to global governance, but we can actually accept their premise and still reject their conclusion as the misallocation of resources caused by fiat currencies and fractional reserve banking, would contribute far more than any government interference could possibly subtract.
Finally the draining of the industrial base from the west and the US in particular are based on the tragic misconception that we live in a Riccardian world of competitive advantage.
We do not, that requires honest money, something we no longer have. With floating exchange rates and sinking currency value countries like China can get a permanent comparative and Absolute advantage that is only accelerated as they get more industrialized while deindustrialized nations like America races towards irrelevance and third world status.
Only honest money can restore the balance and it might take the west hundreds of years to rise again if we allow this trend to continue.