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LibertariCAN
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Re: Inflation and Broken Window Fallacy
Reply #10 - Dec 15th, 2013 at 1:35pm
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[quote author=506B6A75625C5747030 link=1387068783/9#9 date=1387130689]

The "State" trial of Zimmerman was sort of a waste of taxpayer money in that the State cannot prosecute based upon federal laws. Zimmerman unquestionably violated the Right to Life of Trayvon Martin as he racially profiled Martin as a "criminal" because Martin was a young black person in the neighborhood and that racial profiling ultimately lead to Martin's death.

I continue to hope the DOJ will file charges against Zimmerman as the 911 call clearly provides the evidence that Zimmerman was racially profiling Martin which is a civil rights violation under federal law because Martin lost his life due to the racial profiling.

Martin had no criminal history of violence unlike G Zimmerman that had a previous arrest record for assaulting an officer. The State eventually dropped the charges of assaulting a police officer against Zimmerman but not because there wasn't evidence to support the arrest but instead because the evidence was not "beyond a reasonable doubt" necessary for a conviction.

Of course a racist doesn't want to know the truth related to the Zimmerman/Martin case.


[/quote]

Let's not address this in this thread.
  

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LibertariCAN
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Re: Inflation and Broken Window Fallacy
Reply #11 - Dec 15th, 2013 at 1:39pm
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On the topic of inflation specifically:

I didn't really see the other threads related to economics, so I don't necessarily understand the context between Bourgeois and Shiva.

However, generally speaking I would like the difference to be noted between monetary inflation and price inflation. As well the difference between natural and artificial causes of inflation, as I addressed in my other post.
  

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Norwegian Libertarian
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Re: Inflation and Broken Window Fallacy
Reply #12 - Dec 15th, 2013 at 1:43pm
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Shiva, pls.

  
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Bourgeois
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Re: Inflation and Broken Window Fallacy
Reply #13 - Dec 15th, 2013 at 2:36pm
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STAHP DERAILING MY THREAD. I was just trying to use realistic examples, that always happen in the real world, instead of something like widgets.
  

"The government is a greedy piglet that suckles on a taxpayer's teet until they have sore, chapped nipples."

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bonfire
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Re: Inflation and Broken Window Fallacy
Reply #14 - Dec 15th, 2013 at 9:51pm
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Bourgeois wrote on Dec 15th, 2013 at 2:36pm:
STAHP DERAILING MY THREAD. I was just trying to use realistic examples, that always happen in the real world, instead of something like widgets.


Can you use white people examples then?
  
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Bourgeois
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Re: Inflation and Broken Window Fallacy
Reply #15 - Dec 15th, 2013 at 9:55pm
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Are you racist? Black people have a right to be used in examples too...anyway, stick to the topic!
  

"The government is a greedy piglet that suckles on a taxpayer's teet until they have sore, chapped nipples."

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bonfire
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Re: Inflation and Broken Window Fallacy
Reply #16 - Dec 15th, 2013 at 10:54pm
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Bourgeois wrote on Dec 15th, 2013 at 9:55pm:
Are you racist? Black people have a right to be used in examples too...anyway, stick to the topic!


I'm sure I would understand the argument better if you put it in white people's terms. Moving on...

I agree that inflation is harmful to society. The question is how to combat this. Allowing government to monopolize currency is obviously horrible, so what is the alternative? The free market will also experience inflation from time to time. Using the gold standard as an example, A new gold deposit would cause the value of gold to drop. I believe having multiple, competing currencies would provide the most stability. Discuss?
  
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LibertariCAN
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Re: Inflation and Broken Window Fallacy
Reply #17 - Dec 15th, 2013 at 11:23pm
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bonfire wrote on Dec 15th, 2013 at 10:54pm:
I'm sure I would understand the argument better if you put it in white people's terms. Moving on...

I agree that inflation is harmful to society. The question is how to combat this. Allowing government to monopolize currency is obviously horrible, so what is the alternative? The free market will also experience inflation from time to time. Using the gold standard as an example, A new gold deposit would cause the value of gold to drop. I believe having multiple, competing currencies would provide the most stability. Discuss? 


Both inflation and deflation would be natural occurrences in a free market economy that the market and consumers would have to deal with.

Yes, of course I agree that competing currencies should be "allowed". In a free society it wouldn't be a question of allowing them, it would simply be that they arise.

The amusing part about Monetarists is that the original intent was to fight the instability of the gold standard Undecided
  

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Shiva_TD
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Re: Inflation and Broken Window Fallacy
Reply #18 - Dec 19th, 2013 at 9:17am
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bonfire wrote on Dec 15th, 2013 at 10:54pm:
I agree that inflation is harmful to society. The question is how to combat this. Allowing government to monopolize currency is obviously horrible, so what is the alternative? The free market will also experience inflation from time to time. Using the gold standard as an example, A new gold deposit would cause the value of gold to drop. I believe having multiple, competing currencies would provide the most stability. Discuss? 


It is absolutely correct that inflation and deflation willl occur based upon the available "money" (i.e. species money) available but this also has a relationship to population. Since 1950 the world gold supply has basically doubled but so has the world population and the purchasing power of gold has remained relatively stable.

Currency though, as noted, is not related to inflation or deflation of the "money supply" but instead is discounted based upon the trade value between the currency and the money.

Today on APMEX the current "buy" price for a $50 American Gold Eagle is $1233.80 and that calculates out to $1 in "gold" coinage costing $24.68 cents so the discount rate of a Federal Reserve note is "100-1/24.68" or about 96%.

As I noted we typically refer to the discount rate of Federal Reserve notes as "inflation" but in fact it is not. It's just the "trade value" of a promissory note.

This is where the fact that the "discount rate" (inflation) harm most of society that are predominately using these "promissory notes" as opposed to the very wealthy that possess tangible assets such as real estate or even ownership in corporations that are a tangible assets. The promissory notes are discounted but tangible assets are not.

The end result is that the more a person uses "promissory notes" as a component of their "wealth" the more they are harmed financially by additional discounting of the trade value of the promissory notes.

More "promissory notes" (i.e. competing currencies) doesn't address the problem at all.

Requiring the fulfillment of the "contract" that the promissory note represents (e.g. redemption on demand of Federal Reserve notes in American Eagle coins as is currently required by law that isn't enforced) eliminates the "discounting" of the promissory notes which is what we misrepresent as "inflation" today.

That is the only real solution to the problem and while inflation and deflation will occur based upon the actual "money" in circulation it is natural inflation/deflation based upon the trade value of commodities as opposed to manipulative "inflation" caused by the failure to enforce contract law that results in the "discounting" of the promissory notes.
  
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