MikeC wrote
: Is it possible to push the smoke of inflation/devaluation back into the
: bottle? Could we just shave a few zeros off the $100 bill or is that too
: insane?
Chairman Bernanke assures us that the Fed can unwind the frightening
expansion of the monetary base, but he provides few details. Good for
him that banks are terrified to loan and sitting on all their "excess"
deposits at the Fed. If that money gets out, price inflation will be
horrible.
: Is there any sane way to return to a bimetal non-fiat currency system?
Bimetallism was a mistake because of the inevitable natural fluctuations
between gold and silver that put them on a Gresham's law see-saw.
Achieving sound money will be tricky and likely even painful at
times. The present American monetary system is the result of nearly
a century of distortion due to central-bank inflation. There are no free
lunches: boom begets bust.
The game of kick the can with the world's longest experiment in paper
money can't go on forever. We can take our medicine now or wait until it
comes apart chaotically. Ron Paul's proposal to legalize monetary
competition echoes that of Murray Rothbard in The Case for the Hundred
Percent Gold Dollar. The basic idea is to repeal taxes on gold and
abolish legal tender laws in order to let all of us sort out the
complex issues.
: If one could generally control the means of production would it be
: possible to then control the results of sluggish consumerism?
Consumers aren't buying because the economy's structure of production
isn't geared toward producing what we want. Artificially "stimulating"
consumption prolongs the problem.
Attempts to control the structure of production inevitably result in
shortages and misery. The problem is too complex and the variables too
many in number to permit centralized management. See The Fatal Conceit
by Nobel prize winner Friedrich Hayek.
: Is there any hope for sanity or all we all doomed to be shuttle-cocked
: and given the racket instead of a rattle and a smile?
A couple of years back, I cautiously hoped the uprising that threw out
so many incumbents of both big-government varieties was the beginning of
a constitutional reawakening. Primary results so far show that is not at
all the case. Uncle Sam is broke, but everyone insists on continuing the
guns and butter.
Then there's Ron Paul who proposed cutting a trillion dollars out of the
federal budget next year, eliminating five cabinet departments, building
more bases here at home, and bringing home troops from abroad. Somehow
this is "pacifism" and "unrealistic." Instead so-called conservatives
are going for two Yankee liberals and a Georgia progressive.
Maybe libertarians really are just Republicans who mean it.
Greg
--
When asked by the king what he thought he was doing by infesting the sea, he
replied with noble insolence, "What do you think you are doing by infesting
the whole world? Because I do it with one puny boat, I am called a pirate;
because you do it with a great fleet, you are called an emperor." --Augustine