[ronigafni]

OK, thank you for clearing that up!

[ronigafni]

“The further the misallocation proceeds, the greater the divergence between the lengthened production structure and people’s time preferences”

Can you expound on this a little? In such a case, Fed policy made entrepreneurs believe that they should invest in capital goods today in order to profit tomorrow. When tomorrow comes and there is no profit and the prices are all bid up too high, how does further Fed policy necessarily increase the discrepancy between peoples wants and the structure of production?

[ronigafni]

Thank you guys so much for your answers, begin with I wanted to respond to some of the answers…
1. The point for me is that there is no extra weight given to non-tangible things like turning regular graffiti into racist graffiti , unless I have misunderstood something. A law which doesn’t distinguish between writing a swastika on a holocaust survivors house and drawing a daisy on it is somehow unsettling.
2. I have read Walter Blocks paper on guns and it was the basis of my question. One could theoretically find a defensive use for a massive bomb on planet earth which would allow it but I still feel threatened. His article is specifically why I excluded atom bombs
3. My issue, similar to the issue that caused me discomfort is question 1 is, once I have taken that home video file, couldn’t I do whatever I wanted with it because it is not a scarce resource? Let’s even take it a step further in case I am wrong. Let’s assume that person A had a private file stolen by person B who then gives it on a flash drive to person C. Certainly Hoppe and Kinsella would agree that person C can put it all over the internet, would they not? Or let’s say I hacked into his computer from a satellite location, have I really trespassed on his property? Could I not in that situation also put it up on the internet without violating any laws? If the answer to those questions (and I am not sure it is) are yes, than again, I am uncomfortable.
4/5. I haven’t had time to read through all these incredible links yet. Thanks so much everyone!

[ronigafni]

I have a few questions about your responses:
1. Your wrote: “The demand for credit has fallen but the demand for money has risen.” If people are looking to pay back debt and aren’t looking to borrow, where is the demand for money coming from?
2. You wrote: “But until banks use their excess reserves to increase the supply of credit by issuing more fiduciary media, the conditions in the credit market have not changed.” But isn’t the government borrowing an incredible amount of money? Also, how can we say their is no demand for credit when the Government id borrowing so much, shouldn’t that cause interest rates to rise from historic lows?
3. Just generally, I hear so often from people in the Austrian school that Bernanke is printing money to keep the interest rates low so as to stimulate x,y and z sectors of the economy (and not just that the interest rates fell because of lack of demand). Is this not something that people like Ron Paul and Tom have spoken about extensively?

[ronigafni]

Thank you so much for your response. It was so helpful and illustrated to me why I need to review the classes I have already seen and finish the course itself. Just seeing the formulations make it so much clearer and remind me of the necessity (whenever possible) to do so. My email address is rgafni7@gmail.com and I would be thrilled to get a copy.
I constructed a new argument of some of the issues, I think it is valid:
Premise 1: If I own x, I can defend my ownership of x against all aggressors
Premise 2: Trespassers are aggressors
Premise 3: Those using my property without my explicit permission are aggressors
Premise 4: My body is my property
Premise 5: A fetus is trespassing my body and using it to sustain itself without my explicit permission
Premise 6: A newborn child still attached to the umbilical chord is using my body to sustain itself without my explicit permission
Premise 7: A parasitic twin is using my body to sustain itself without my explicit permission
Conclusion: It is morally acceptable to abort parasitic twins, fetuses and newborns still attached to the umbilical chord on the grounds that they are trespassing on and/or living off my body

[ronigafni]

Wow, that was incredible and really cleared a lot of things up. One follow up though… You wrote “By saving and investing more, they give entrepreneurs command over more resources to make the transition and less liquidation overall will need to be done if time preferences stay lower. ”
This would also seem to reveal another great evil of debt/deficit spending on the part of the Federal Government. By crowding out credit for entrepreneurs (since they need to borrow that money for themselves) and forcing a greater amount of necessary liquidation that can only be solved (in the ruling classes mind) by printing more money for them (thereby further distorting the market). Is that about right?

[ronigafni]

I can appreciate the fact that the lack of lending indicates that the interest rate has fallen as a result of a drop in demand for money. On the other hand, what of the massive increases to M1 and M2 over the past few years? Didn’t they give a tremendous amount of liquidity to the banks? If so, does this glut of high powered money not also put tremendous downward pressure on interest rates or does it not because that money is not being lent now anyways?

[ronigafni]

Thank you Brion and John. I think John hit it on the head with my friend when he said “Perhaps your friend is reading strict modern contract law back into the 18th and 19th centuries?”. Brion, your Madison quote really settles it for me. In fact, it now seems rather silly that he would say “Virginia basically got duped” and there was nothing they could do about it without being the bad guys themselves and the instigators of war.

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