IntenseDebate - Alex Chafuen

11 years ago @ Atlas Sound Money Project - Say's Law and Keynesia... · 0 replies · +1 points

Perhaps it is better to let prices of those particular items that are in more or less demand adjust. This includes the price of money. The market will make these adjustments based on the demand for goods exhibited by holders of goods and holders of money. The Keynesian policy-makers would be flying blind if they tried to find the market rates that would clear various markets. Unfortunately, their goal is not necessarily to clear markets, but to manipulate markets for certain ends.

12 years ago @ Atlas Sound Money Project - Where to Buy Gold at $... · 0 replies · +2 points

Hmm... I detect a note of sarcasm, Katia!
But it does seem a bit unfair for there to be a player in the market that stole the world's biggest stash of gold, then started printing the very tickets people must use and accept for purchase of gold. The more they print, the more the price of gold rises in their green coupons, and the more the people buy coins minted by the thieves to protect themselves from the printing!
Soon, the currency the thieves have put onto your back explodes, and all are impoverished. All but the thieves, of course, because they can always buy them back no matter how high the price rises, because they print the coupons! So as the situation starts to get out of control, expect to see central banks buying back the gold, driving the price higher, and accelerating the destruction of their fiat currencies. Or has that already begun? See, for example, China, Russia, India... the list goes on.
When the fiat currencies finally die, will the murderers be left holding all of the real money and allowed to begin the cycle again?

12 years ago @ Atlas Sound Money Project - Sound Money Interview ... · 0 replies · +2 points

If I take you to mean that a transition to a national gold standard would be tricky in the globalized world we live in full of fiat money regimes, it is a point well taken. The transfer of gold electronically I think would not be a problem because clearing house gold banks (and most central banks today hold a lot of gold, and are busy buying more - perhaps in preparation?) or some similar set-up would make the actual physical transfer of gold rare, especially over long distances.
The possibility of cheating by non-gold standard countries is trickier. I'm confident that through technical measures, reputation effects/blacklisting cheaters, and a good old fashioned instinct for self-preservation it could be worked out. But it's a good topic for future articles or interviews.
Thanks, Guest!

12 years ago @ Atlas Sound Money Project - Idle Resources Are the... · 0 replies · +1 points

Interesting, Katia. So this means that you cannot leave land fallow to regenerate it, or it may be expropriated? I wonder if one unintended consequence of those flimsy property rights is too destroy the farming soil, leading to failing crops, leading to reduced wealth and food overall. And yes, why is the U.S. government so antagonistic to authoritarian regimes overseas; could it be envy?

12 years ago @ Atlas Sound Money Project - "How Would the Invisib... · 0 replies · +1 points

It has been corrected. Thanks for pointing it out!

13 years ago @ Atlas Sound Money Project - Like fish in a barrel. · 0 replies · +1 points

Joe DiGirolamo commented on Like fish in a barrel. - Atlas Sound Money Project:

It is sickening to know that the heads of our monetary system speak so ignorantly about spending. I understand that spending less is a decision a family might make to decrease and pay off their own debt, but this decision is based off consequences. If the family doesn't pay it off, there are penalties. This leaves responsibility with the 'family'. The government's debt, on the other hand, becomes the citizen's problem. There are no consequences: which you would expect from an entity spending someone else's money. Where's the incentive?

(Reposted by Admin, apologies for the glitch.)

13 years ago @ Atlas Sound Money Project - "AIG, Fed, in Sub-Prim... · 0 replies · +1 points

And why wouldn't they want the assets back? If they fail again, just resell them to the Fed again!

13 years ago @ Atlas Sound Money Project - Housing America: Build... · 0 replies · +2 points

In some respects, you could make the case that Somalia has done this with their currency. It has been counterfeited down to the price of ink and paper, meaning it's relatively stable. Such a strategy would be effective at tying the hands of the central bank. It would be just as unprofitable for the bank to expand the money supply as it would be for anyone else. But as Hardy and Friedman point out in that article (1951 in the Journal of Political Economy), there would be great difficulty in convincing people to accept bricks.

A further question would be to what extent we want the money supply to vary versus letting the prices vary. And to what extend the latter actually happens.

13 years ago @ Atlas Sound Money Project - "Why is inflation bad?" · 0 replies · +1 points

Thank you for the update. I reposted a link to the 2006 article, as I enjoyed reading it and thought I would highlight it further.

13 years ago @ Atlas Sound Money Project - "Why is inflation bad?" · 0 replies · +1 points

I had not thought about that when I posted it. I thought their list of the problems of inflation were worth sharing (and it is), but you're right. Reading it again in light of your comments does make it more enjoyable. Thanks for the comments.

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