Economist Charles Calomiris examines the puzzling pervasiveness of dysfunctional banking, and argues that bank crises are often the predictable result of pol…
Economist Charles Calomiris examines the puzzling pervasiveness of
dysfunctional banking, and argues that bank crises are often the
predictable result of political bargains, and that these bargains are
structured by a society’s fundamental political institutions.
I think everyone needs to learn about Bitcoin, it allows for all of the
functions of traditional banking and then some without a trusted third
party. It can now be done without government enforcing laws or regulations.
It is ran by everyone and requires the trust of no one but the two parties
involved. The technology behind Bitcoin will enable a completely voluntary
currency and credit market that is completely apolitical(in the sense that
politicians can affect them). Mark my words it will be the most disruptive
technology since the internet.
Unfortunately, this Iron Rule of Credit is more like a fallacious faux
ideology. The state has time and time again committed to legislation that
is proven to be detrimental to economic circumstances to benefit a few
private citizens who own industry.
The elephant in the room is Consumerism, and the fact that most capitalists
don’t know the difference between consumerism and capitalism. In
capitalism, the flow of capital is used as the guide to determine the
values of the system. In consumerism, the only value is to extract
resources for the purpose of owning/controlling/consuming them, and all
decisions are based on increasing or maintaining the rate of consumer
purchases, rather than people acting in their own best interests, guided by
an invisible hand of circumstantial limits.
In consumerism, anyone’s best interests are second to their purchasing
Their purchasing choices are done blindly, with real costs and consequences
hidden from view via income taxes, subsidies, fines, fees etc.
The opposite of capitalism is simply a sales tax.
The opposite of consumerism is generosity.
Capitalists fight sales taxes because they slow capital.
Consumerists fight common decency because it interferes with their personal
All in the name of “liberty”.
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