Re: [A-List] The Peso is a "Derivative" of the Dollar

[<christian11@xxxxxxxxxxxxxx>]

Anne,

Although Austrian theory may be taken to be a theory of tyranny-prevention,
since by its definition all governments are tyrannical, the distinction is
basically moot. The market is supposed to  reflect the natural order with
which "tampering" is dangerous and/or malevolent. Gold money is good b/c it
returns us to an Edenic state, where we don't have to deal with the
complications of an imperfect, man-made world, but simply let the untainted
intelligence of the market deliver its judgements. If that leads to volatile
boom and bust cycles, meagre growth, poverty and private corruption, well so
be it; that is the human condition. And too bad if we want a better, if less
morally pure, world.

To say that every fiat money system has collapsed or is collapsing is to say
nothing. The same is true, though moreso, for commodity money. To say that
this collapse is the result of the fact that all economies are political, as
you do, is bizarre. Commodity money, you may have noticed, is political too:
or do not the interests of late 19th century American silver miners, for
example, count? Of course, with the gold standard, you would never have
anything like wildcat banks, and wildcat banks would never confiscate the
money of the "common man." Right? Except that they did.

There is a difference between money and legal tender. One may hold value and
another also accepted as a means of payment. With a gold standard, the
government promises convertibility of one into another, which doesn't get it
out of the value loop, but involves it more intrisically.

Christian


Christian

> Annewilliamson wrote:
>
> It is not the purpose of government to
> "create" employment, or
> money.  Any employment organized by
> government is government
> employment and has to be supported by tax
> revenues.  The market,
> human activity creates beneficial employment
> - and that is reality.
> Austrian theory is not a theory meant to
> prevent revolution,
> but rather to prevent government tyranny,
> generally speaking.
>


> > And money must be a store of value; otherwise
> commerce and industry can not
> > flourish,
> > and the common man is endlessly cheated
> through currency confiscation
> > in the fiat system.  What Henry outlined is,
> in fact, fantastically
> > idealistic
> > because no government is not made up of
> well-meaning robots working for
> > the common good, but of flesh and blood human
> beings who seek their
> > own self-interest (in democracies they seek
> re-election through the
> > buying of votes with money confiscated from
> other people, for example)
> > and succumb to parasitism.  This is why every
> paper money system ever
> > devised has collapsed to its intrinsic value
> (zero) or is collapsing.
> >
> > I am travelling and am constrained from
> responding more fully, but could
> > not allow such misrepresentations of the
> Austrian school and the purpose
> > of money without making some noise.
> >
> > Anne
>