I just did. I wrote very long posts with evidential detail. I’m waiting for you to respond to my recent post. Because you are assuming what isn’t there.
sigh
What we mean by free market money is there are no legal tender laws. People are free to use whatever means of indirect exchange they want.
This thread is so painful.
Mansoor you have invested the greater part of your Saturday, and now your Sunday. If you are this interested in refuting the Austrian methods why not read up about them and write up something legit? Your going no where here accept for circles.
You are attempting to dismantle a whole library of coherent logic and data, to defend your own unsubstantiated economic fears and theory’s. It’s not going to work, at least not without a knowledge of economics first.
No. Not my theory. Your theory is wrong. Because you think printing money is always wrong.
Because your theory won’t accept deflation as a just as big a monter as inflation is!
They both monsters which need to be dealth with.
Mansoor
Mansoor, I understand that 100,000 pieces of gold is more than 90,000 pieces of gold. In fact, I understand the point you are trying to make in this example and in your OP. The problem is, your premises are wrong. In this example you are mixing a deflationary implosion of the fiat-credit expansion variety with a deflationary environment of a commodity based monetary system.
How are you coming along with the recommended studies of capital formation and the structure of production? This list: capital formation, the structure of production, subjective value scales, the relationship between (capital) investment, production, consumption, saving, the demand for money is not just a bunch of ad hoc disjointed concepts thrown together haphazardly to try to confuse you. Rather, these concepts flow together logically, and are intertwined in an amazing way.
You have wondered away from the study of sound economics and seem to be dug in to your position. You say 1) depressions are caused by too much saving; 2) government must intervene to get spending going again to prevent an even bigger disaster. Isn’t that the jist of it? We are telling you that your premises are wrong. We pointed out the errors and provided references for further study.
So what does that mean? Other systems of thought have been dismantled before. Read your world history. Systems of though need to be discarded and/or updated but only based on lots and lots and lots and lots of evidence verified by experience of lots and lots and lots of people over lots of lots of time.
Mansoor
I suggest you answer my post, because I never said anything about what you are talking about here. Where did I bring up “printing money”? Where did I mention the words deflation and inflation? When did I talk about either one being a “monster”?
And since you never addressed what I was actually talking about, then no. My theory hasn’t been disproven. You’ve only tried to manage to avoid the issue by not responding - point by point - to my post.
If I had 100,000 gold coins I may decide It’s worth my money to save them in a warehousing facility rather then under my bed. In such a case I’d be willing to pay the costs of warehousing. If the deflation is greater then the warehousing cost, I gain and so does the warhousing facility.
So I deposit 100,000. Under 10% deflation over 5 years.
Lets say the Warehousing agency claims 5,000 for maintenance and service costs.
I still gain 5% purchasing power with the ease of mind that my money is secure. And the Warehousing agency gains by offering a great service.
There are always cases where such incidents can occur, and they would be rational.
Sorry. There are so many posts. Can you please re-post?
Thanks!
Mansoor
So if deflation is 10% and rate of return of the project is 9%. Will you do the project or just warehouse the gold?
Mansoor
They weren’t done by some half thrown together logically fallacious theory that didn’t match up with any data anywhere. In fact it’s recently for the most part been the Austrian school which has dismanteled various schools of thought, like Fascism and Socialism which you advocate, Communism, collectivism ect…
But in all honesty you have yet to provide anything here that refutes even a smidgen of Austrian thought. All you have managed to do is waste alot of people’s time, including your own.
The project promis’s a 20% return.
Base on my subjective valuation, depending on how risky I think the project to be. Who wouldn’t want to receive 20% return over 5%?
Ok. Sorry for wasting and others time. But I am still left with the belief that Keynes is ahead of Mises.
Mansoor
Note. I should have clarified. The percent return is in nominal terms.
Mansoor.
it does not matter. FILC’s says most people would do the deal! I say absolutely not!
Mansoor
Look. Capitalism. Socialism. Statism. Liberalism. These words are so mis-used and have so many connotations and meanings.
I need to know your economic system in terms of loaves of bread, bread factories and piceces of gold!
Mansoor
Depends on how risky the project is. If it’s nearly guaranteed I’ll choose the 9%. But you, or I, cannot make such judgments on behalf of other people. There is a myriad of factors taken into consideration under such decisions.
Well, you’ve made some amazing quotes on this thread. I was going to compile them, but didn’t want to take the time. I just couldn’t let this one slide. How’s that reading regarding capital formation coming along?
Really, please ask your relatives, friends and co-workers and lets see what they say?
Mansoor