tag:blogger.com,1999:blog-648884752216444797.post3786331228971646090..comments2024-03-28T09:59:13.754-07:00Comments on bionic mosquito: Ban Interest via Democracy (a Global Force for Good)bionic mosquitohttp://www.blogger.com/profile/12002548958078731031noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-648884752216444797.post-60555276546493972732013-01-28T13:23:01.026-08:002013-01-28T13:23:01.026-08:00gpond, thank you for your valuable contributions i...gpond, thank you for your valuable contributions in this discussion.<br /><br />Reverting to your initial comment in the first post on this topic, I am satisfied that there was value in this discussion.<br /><br />Mr. Ikink, compared to most who propose the scheme of banning interest, took the time to thoroughly answer the questions I initially posed.<br /><br />Through this, at least there was clarity that it will take force to achieve his proposed plan. And as you point out, this is a political question.<br /><br />Politics cannot be avoided as long as politics is advocated in reaching the solution.<br /><br />bionic mosquitohttps://www.blogger.com/profile/12002548958078731031noreply@blogger.comtag:blogger.com,1999:blog-648884752216444797.post-7802446039091758442013-01-28T12:58:46.982-08:002013-01-28T12:58:46.982-08:00Mr. Ikink,
To advocate banning anything, includin...Mr. Ikink,<br /><br />To advocate banning anything, including loans at interest, is an inherently political statement. <br /><br />Politics is all and everywhere about when and under what circumstances the use of force is to be considered legitimate. Nothing else. <br /><br />It is impossible to "ban" any human activity in the way I think you mean the term. Humans can and will engage in the banned activity. So to speak of banning an activity is really to speak of what and how much force, aka violence, is to be used against the person as punishment for engaging in that act. <br /><br />The compulsory aspects of your Natural Money plan can never be disentangled from political discussion until and unless it is %100 voluntary. You will continue to engage in political discussions until that time. gpondhttps://www.blogger.com/profile/01013837189187920036noreply@blogger.comtag:blogger.com,1999:blog-648884752216444797.post-10598940088745273762013-01-28T12:43:41.595-08:002013-01-28T12:43:41.595-08:00Bart
Thank you for the time.
I will encourage yo...Bart<br /><br />Thank you for the time.<br /><br />I will encourage you to consider the justification of force via democracy, and where you would draw the line. If you want to make any headway with people in the Mises community, you must be able to explain this well.<br /><br />In any case, I wish you well.<br /><br />bionic mosquitohttps://www.blogger.com/profile/12002548958078731031noreply@blogger.comtag:blogger.com,1999:blog-648884752216444797.post-74121619885013448652013-01-28T11:41:07.935-08:002013-01-28T11:41:07.935-08:00Jonathan, thank you for your reply.
I could answe...Jonathan, thank you for your reply.<br /><br />I could answer this, but I think would become an exchange of political views. I have done that before. It is pointless.<br /><br />I am not in the business of convincing people. I am trying to improve the theory of Natural Money, and only time will tell whether or not the work will yield results.<br /><br />There are some things written that I intend to use, for example I am planning to investigate the issue of natural rate in more depth.Bart klein Ikinkhttp://www.naturalmoney.orgnoreply@blogger.comtag:blogger.com,1999:blog-648884752216444797.post-43071865045661224042013-01-28T11:33:53.648-08:002013-01-28T11:33:53.648-08:00Thank you for this. It is good to be reminded tha...Thank you for this. It is good to be reminded that interest rates are prices, and prices are the best communication tool devised. It is best to leave prices free such that these can communicate honestly.<br /><br />Any regulation or ban done outside of market forces hinders price discovery and introduces inefficiency and waste. This is true for the price of money and risk, just as it is true for the price of any good available.bionic mosquitohttps://www.blogger.com/profile/12002548958078731031noreply@blogger.comtag:blogger.com,1999:blog-648884752216444797.post-63499676869894840152013-01-28T10:58:48.087-08:002013-01-28T10:58:48.087-08:00There is another fundamental Austrian critique aga...There is another fundamental Austrian critique against government mandated interest rates notwithstanding that the rate is set at zero. Without Natural rates set by the free market we are denying ourselves the coordinating function of these rates between consumption and investment by truly reflecting consumers' time preferences and available resources. It is like blinding ourselves in the name of efficiency. <br /><br />I quote below Roger Garrison from his discussion on Natural Rates of Interest. I quoted extensively (hope it fits), but I recommend the entire article, link here: <br /><br />http://www.auburn.edu/~garriro/natneut.pdf<br /><br />So named by Swedish economist Knut Wicksell, the natural rate of interest is the rate that reflects the underlying real factors. In macroeconomic terms as applied to a wholly private economy, it is the rate that governs the allocation of resources between current consumption and investment for the future. By keeping saving and investment in balance, the natural rate guides the economy along a sustainable growth path. That is, governed by the natural rate, unconsumed current output (real saving) is used for augmenting the economy’s productive capacity is ways that are consistent with people’s willingness to postpone consumption.<br /><br />In the hands of the Austrian economists, the natural rate became the rate that reflects the time preferences of market participants and allocates resources among the temporally defined stages of production. The output of one stage serves as input to the next in this logical and broadly descriptive representation of the economy’s production process. The temporal dimension of the economy’s capital structure is a key macroeconomic variable in Austrian theory. Time preference is simply a summary term that refers to people’s preferred pattern of consumption over time. A reduction in time preferences means an increased future-orientation. People willingly save more in the present to increase the level of future consumption. Their increased saving lowers the natural rate of interest and releases resources from the final and late stages of production. Simultaneously, the lower natural rate, which translates directly into reduced borrowing costs, makes early stage production activities more profitable. With the reallocation of resources from late to early stages of production, the preferred temporal pattern of consumption gets translated into an accommodating adjustment of the economy’s structure of production.<br /><br />Movements in the natural rate are also critical to the economy’s performance when changes occur in the availability of resources or in technology. Suppose that a technological breakthrough makes a time-consuming production process much more productive than before. Future consumption—even increased future consumption—can now be secured with less of a sacrifice of current consumption. People’s choices in the marketplace will determine how much of the technological gain will be realized in terms of current consumption (less saving) and how much in terms of future consumption (in which the availability of a new technology more-than-offsets the effect of reduced saving). A rise in the natural rate during the transition period is portrayed by the Austrian economists as an “interest-rate brake,” a term we owe to Hayek (1933, pp. 94 and 179). The interest-rate brake moderates the rate at which the new technology is implemented and thereby allows for increased current consumption even during the period of implementation. Inventories are drawn down in late stages of production and some resources are reallocated toward less time consuming projects.<br /><br />In summary terms, the natural rate is seen as an equilibrating rate. It is the rate that tells the truth about the availability of resources for meeting present and future consumer demands, allowing production plans to be kept in line with the preferred pattern of consumption.<br />gpondhttps://www.blogger.com/profile/01013837189187920036noreply@blogger.com