Sound Money and Individual Property Rights

Thorsten Polleit has written a good description about of use of a priori logic on economics theory in a post published at mises.org. He has proved the truth of one implication from unsound money over erosion and destruction of civil liberty and property rights tracing back the link between this proposition and the human action axiom, which is a so illuminating demonstration while it is using the regression theorem of Mises. Nevertheless I have another proof of the truth of such implication, not tracing back the human action axiom link but reducing such proposition to an absurd situation. Here I wanna leave this demonstration.

The implication of Polleit -original proposition- can be stated as follows: if people use unsound money then this money erodes and destroys civil liberty and property rights. But suppose, for a moment, that such proposition is false. So, unsound money preserves civil liberty and property rights. If one individual accepts a not free choice currency -that is unsound money-, such act imply that this individual accepts a coercive and compulsive money imposed for someone which harms his self-interest because harms both his liberty and his rights to choice. This last conclusion contradicts the supposed preservation of liberty and property rights derived from the falsified original proposition. This contradiction come from such supposed truth of the falsified original proposition. Then, the falsified original proposition is false. Then the original proposition is true, what is the same to say that unsound money erodes and destroys civil liberty and property rights. Read All... Leer Todo...

Blogging My Business Cycle in Twitts

Between the last Oct. 24 and Nov. 14, I have written a sequence of twitts in an attempt to enumerate some Hayekian, Rothbardian, and Misesian approach of Austrian Business Cycle Theory -ABCT. This approach is a sound theory of boom and bust economic fluctuations. I know that these fluctuations are always caused and fueled by loose fiat money issued by a central bank and banking system. Men who work in these banks do something like that a fraudulent business issuing loose money. People in a society, which are coercively -by state force an state violence- compelled to use this out of thin air money, must learn to protect their money from these fraudulent state supported bankers men.

All countries around the world have adopted fiat money as both their legal and forced currencies. Each central bank hoards an strict monopoly on money; only central bank can issue legal money. Commercial banks also make their business issuing fiat money through credit expansion. In this way such fiat money issuing system promotes some privileged business protected by state. So, to protect our money from the fraudulent state supported men will be not an easy task. Then we must hope that, while all society around the world stays on violently forced fiat money used to do interchanges and to sign contracts, economic boom and bust will recurrently occur. Today, several economic systems on the planet are going to an economic collapse. Following, I'm blogging all sequence of my twitts about of ABCT and its relation to the ongoing world economic downturn.

A business cycle theory can't be establish for a purely unhampered (free) market. So a business cycle occur in a hampered (not free) market.
24 Oct

The main feature of a cycle is the sudden revelation of business errors... a sudden manifestation of a cluster of errors...
24 Oct

So a sound theory of cycle must explain, in details, such revelation...
24 Oct

We see that such cluster of errors are only revealed after the boom take place, and no businessman really grasps this before the crash...
24 Oct

So, no free market force is the fuel source that is fueling such manifestation...
24 Oct

Thus, this force is not derived from an element of unhampered free market...
24 Oct

We must remember that an unhampered free market is the best economic institution for an spontaneously organized social cooperation...
24 Oct

In a free market -spontaneously organized- society, reigns an steady economic order in price, growth, income, production, demand, employment
24 Oct

If an strange force disturbs an unhampered free market, then such force disturbs that spontaneous order risen from this free market...
24 Oct

Then, the resulting order will be not both so spontaneous and so organized...
24 Oct

It is this deficiency in spontaneity and a persistent disorganization which induces people to commit recurrent and uncontrollable errors...
25 Oct

These error remain growing into society while they are fuelling by such strange force hampering free market...
25 Oct

This force, given it's not a natural force from the free market, eventually succumbs while economics is at the top of the boom...
25 Oct

At this time, errors suddenly arise and free market operations must back on track. From here an economic fix must happen. A crash has begun.
25 Oct

A question I ask is why this violent invader force succumbs?...
26 Oct

My answer is that several but all individuals realize the dangers derived from no free market spontaneity and no free market organization...
26 Oct

From this moment such violent invader force will be no more effective because all individual identify this force as the cause of errors...
26 Oct

My second key ask is, why all individuals realize about such dangers just prior to crash?...
27 Oct

I have only one response to this: only the complacency and ignorance of the public permit the situation continue...
27 Oct

Only the complacency and ignorance of the public makes them slaves of such violent invader force...
27 Oct

Once time such complacency and ignorance have vanished then the violent invader force succumbs, men became free and they can see the dangers
27 Oct

My third question is, why the complacency and ignorance does not last to perpetuate the boom?...
29 Oct

The complacency and ignorance lead to an economic inconsistency between localizations and localisers of goods in an economizing complexity.
31 Oct

In a boom such complacency and ignorance are generalized. So the economic inconsistencies are generalized too...
31 Oct

Trivially, an generalized inconsistent economic system is explosive. Then, it is not perdurable and its close fate is the crash...
31 Oct

An inconsistent economic system looks like an economic system artificially undermined by not profitable investment projects...
6 Nov

My fourth question is, what, in business cycle, this violent invader force consist of?...
6 Nov

This violent invader takes the shape of fiat credit expansion...
6 Nov

Fiat credit expansion feeds the boom -artificial expansion of not profitable investment projects-...
6 Nov

Simultaneously, fiat credit expansion creates destructive inflation in a boom, and its unavoidable solution is a crash...
6 Nov

What the crash consist of?
6 Nov

The crash consists of two unavoidable results: currency collapse or prices collapse...
6 Nov

So, my abstract on business cycle theory looks like following three twitts:
6 Nov

1-A violent force invades the free market using fiat credit expansion and inflation...
6 Nov

2-A boom appears in the way of not profitable investment projects invading all economy...
6 Nov

3-An unavoidable crash emerges, to fix this economic inconsistence, in the form of currency collapse or prices collapse...
6 Nov

What about the relation between the business cycle and the world economic collapse?...
6 Nov

Today, several but all countries around the world are in the final stage of a fiat- credit expansion boom. The next fate is a world crash...
6 Nov

Where do these violent forces that destroy a free market -and a society- come from?
9 Nov

These destructive forces come from the state...
9 Nov

State creates fiat money -inflation- destroys the value of money, expands credit through banking system and promotes artificial investments
9 Nov

In this way the state hampers the free market, causing a boom and its corresponding crash...
9 Nov

The men of the state use theirs coercive and compulsive powers -its violence- to promote and cause this crisis and ruin in a society...
9 Nov

Thus, the statesmen are a privileged class of violent criminals who get rich while the entire society suffers from the crisis...
9 Nov

The societies have an aggressive malignant tumor that invades. This tumor is the state...
9 Nov

Whether societies want to continue prospering they should remove the tumor, they should abolish the state...
9 Nov

Today, the state creates and promotes violence, what is inconsistent with the principle of not violence from which the society depend on...
9 Nov

There are no such things as ends of or actions by groups collectives or States which do not take place as actions by specific individuals...
13 Nov

So, the government doesn't exist. Only exist men that act to, and are controlled by, other men who are recognized as government men...
14 Nov

Of where the credit expansion come from?...
14 Nov

Credit expansion come from two possible sources: a) from government men, and b) from banking system men...
14 Nov

a)The government men expand the credit through fiat money issues...
14 Nov

b)The banking system men expand the credit through fractional lending...
14 Nov

These two sources of expansion provide money created out of thin air...
14 Nov

These two sorts of men provide money created out of thin air...
14 Nov

A consistent economic activity structure can't work so much time with money created out of thin air...
14 Nov

So, a monetary system with money created out of thin air collapses sooner than later...
14 Nov

So, an economics system, under a democratic society, is doomed to collapse because of evil will of men who create money out of thin air...
14 Nov


Of course, you can read the precedent explanation on jcveagle because I'm Blogging My Business Cycle in Twitts. Read All... Leer Todo...

I'm an Anarchist

Mrs. President of Argentina -Cristina Fernandez de K-, along of last G20 meeting held in Cannes -France- about of 3 and 4 November-2011, used the expression “anarcocapitalismo” to address the now observed global financial performance. In truth, such expression used for Mrs. President to characterize a financial market crisis was no so original from she because it is both the same and the recurrent expression used for all Marxian to claim for his loved and totalitarian socialism and to critic the vigorous capitalism. In the pages 155 and 156 -chapter 3- of his book “The Causes of Economic Crisis” written in 1931, Ludwig von Mises said:

“...The Marxian critique censures the capitalistic social order for the anarchy and planlessness of its production methods. Allegedly, every entrepreneur produces blindly, guided only by his desire for profit, without any concern as to whether his action satisfies a need. Thus, for Marxists, it is not surprising if severe disturbances appear again and again in the form of periodical economic crises. They maintain it would be futile to fight against all this with capitalism. It is their contention that only socialism will provide the remedy by replacing the anarchistic profit economy with a planned economic system aimed at the satisfaction of needs.

Strictly speaking, the reproach that the market economy is “anarchistic” says no more than that it is just not socialistic. That is, the actual management of production is not surrendered to a central office which directs the employment of all factors of production, but this is left to entrepreneurs and owners of the means of production. Calling the capitalistic economy “anarchistic,” therefore, means only that capitalistic production is not a function of governmental institutions.

Yet, the expression “anarchy” carries with it other connotations. We usually use the word “anarchy” to refer to social conditions in which, for lack of a governmental apparatus of force to protect peace and respect for the law, the chaos of continual conflict prevails. The word “anarchy,” therefore, is associated with the concept of intolerable conditions. Marxian theorists delight in using such expressions. Marxian theory needs the implications such expressions give to arouse the emotional sympathies and antipathies that are likely to hinder critical analysis. The “anarchy of production” slogan has performed this service to perfection. Whole generations have permitted it to confuse them. It has influenced the economic and political ideas of all currently active political parties and, to a remarkable extent, even those parties which loudly proclaim themselves anti-Marxist...”

It isn't surprising to me that an Sud American politician cultivates in his mind a medieval pre-capitalist idea about of human actions. It isn't surprising to me to see several other politicians of the rest of the world who are clapping while the expressions of Mrs. President Cristina are saying: ohhh!!!, how beasts are all of you, so much that you are not going to eliminate such wild capitalism; what are you waiting from this frenetic capitalism?. But do it is surprising to me is that no Argentinian intellectual, no Argentinian economist, has had the real value to say she: 'how ignorant, how wrong, how arrogant, and how stupid rings a pre-capitalist conception about of now well accepted of all so complex interactions among human beings'.

What Mrs. President don't see, or don't want to accept, is that an economic crisis is always a symptom, a manifestation, of a failure of socialism to contaminate the capitalism. What Mrs. President don't see, or don't want to accept, is that actual crisis is only a symptom, a manifestation, derived from issuing fiat money which is a quasi perfect socialist instrument used to contaminate a sound capitalist economic system. I'm sorry Mrs. President, I see that you mental grasp looks as a so simplistic model for a so complex and sophisticated human action phenomenon. So, given that I'm both one libertarian and anti-totalitarian man, I have to say you that I'm not a socialist. But only given that I believe in a fully free capitalistic society, I have to accept your sentence that: I'm an Anarchist. Read All... Leer Todo...

Cris...? Es para Vos...

Este video está especialmente dedicado para vuestra majestad, la reina, señora presidente... Read All... Leer Todo...

¿Qué Clase de Cosa es El Estado?

"El Estado" es hoy una cosa monstruoasa, tal como se describe en este video. Read All... Leer Todo...