The Three Beauties of Capitalism

The Three Beauties of Capitalism are Justice, Freedom and Happiness.

Justice, because in the free-market exchange between two willing vendors, one vending a commodity, the other vending the cash commodity, there is no coercion, and therefore each willing trades that which he does not want for that which he values much more highly. Justice too in that the cash commodity has in itself a true commodity value, if it is a metals certificate. However, when government fiat, or Stalin or Bernanke, says that the money only has value because the state says it has value, while it prints paper tickets up by the truckload, after forcing hard-working people to spend all their life’s energy accumulating a tiny pile of those paper-tickets — under such a system of legalized government looting, the money is always precarious, and there is no such thing as true leisure, the ability to contemplate nature with an untroubled mind, for the government can, overnight, completely destroy the value of all that accumulated labor which society’s straight-shooters have honestly produced. The back-shooters have won again.

Freedom is the next Beauty of Capitalism, the Freedom to spend the money commodity according to the values of the individual. Under Capitalism, the fellow who wants a new set of chrome wheels, or an acre of woodland and a tent, or a postage-stamp-size lot with the 4,000- square-foot eight-bedroom (with shop and guest house), can get it if he persists long enough and is ingenious enough to fill a demand arising from society, that vast miasma of conflicting desires, bathed in a cream of capitalist froth, united in the pluribus unum of the Dollar, and disunited in the billion and one dreams of the billion and one inhabitants of the earth. Under capitalism, the shopgirl gets her creme mousse rinse, the miser gets his bruised potatoes at half-off, and the billionaire misanthrope gets his seven-sections with a steel-reinforced bunker in the middle,  barb-wire surrounding his “compound”. Under capitalism, the game is: whatever you want if you can find it on the market, and match the asking price with the cash commodity.

The Last Beauty of Capitalism is Happiness, the happiness of fulfilling whatever pressing need, or hedonistic desire, may arise on this journey tween the orgasm of one’s creation and the death rattle. It is far from the heady Happiness of philosophical contemplation, when the mind realizes a truth that it has never realized before, and a vast body of confusion resolves into a deep understanding of its structure. No, this is a simpler form of Happiness, the happiness of the child who says, “Mummy, buy me a soldier!” and has his wish fulfilled. Older children, bigger toys. The tin soldier gives way to the travel trailer and the Porsche, both of which cost as much as a section in Nevada.

Capitalism is the natural way of man. Now that the perversion of Keynesian Socialism, misnomered as Capitalism, has gained full hold of the entire Western World, Man will have to once more undergo the vast looting and legalized theft of the Socialists: that is the price of praising Obama and Bernanke. But the Socialist systems always collapse, usually fairly fast once the ball gets rolling, and the ball is rolling pretty fast now, as we can see from the roiling of the Bond and Gold pits. People will begin to wake up, as they are being looted, and the vast Bourgeois system of the spoilt-brats of the developed world continues to unravel. Life in Soviet Russia is coming to America, and fast.

Dasvidanya, comrades.

Hooooooooooooooooooooooooooooowwwwwwwww! — Silverwolf

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4 Responses to “The Three Beauties of Capitalism”

  1. MC Shalom Says:

    Chairman Ben S. Bernanke, Quantitative Easing Won’t Work.

    In a Liquidity Trap although Saving (S) is abnormally high investment (I) is next to 0.

    Hence, the Keynesian paradigm I = S is not verified.

    The purpose of Quantitative Easing being to lower the yield on long-term savings and increase liquidity it doesn’t create $1 of investment.

    In a Liquidity Trap the last thing the Market needs is liquidity. Force feeding it won’t achieve anything useful.

    If short-term risk free interest rates are at 0.00% doesn’t that mean that credit is worthless?

    Quantitative Easing does diminish the yield on long-term US Treasury debt but lowers marginally, if at all, the asked yield on long-term savings.

    Those purchases maintain the demand for long-term asset in an unstable equilibrium.

    When this disequilibrium resolves the Market turns chaotic.

    This and other issues are explored in my tract:

    A Specific Application of Employment, Interest and Money
    Plea for a New World Economic Order

    Abstract:

    This tract makes a critical analysis of credit based, free market economy, Capitalism, and proves that its dysfunctions are the result of the existence of credit.

    It shows that income / wealth disparity, cause and consequence of credit and of the level of long-term interest-rates, is the first order hidden variable, possibly the only one, of economic development.

    It solves most of the puzzles of macro economy: among which Unemployment, Business Cycles, Under Development, Trade Deficits, International Division of Labour, Stagflation, Greenspan Conundrum, Deflation and Keynes’ Liquidity Trap…

    It shows that no fiscal or monetary policy, including the barbaric Quantitative Easing will get us out of depression.

    A Credit Free, Free Market Economy will correct all of those dysfunctions.

    The alternative would be to wait till, on the long run, most of our productive assets get physically destroyed either by war or by rust.
    It will be either awfully deadly or dramatically long.

    In This Age of Turbulence People Want an Exit Strategy Out of Credit,
    An Adventure in a New World Economic Order.

    We Need Hence Abolish Interest Bearing Credit and Cancel All Interest Bearing Debt.

    Exit Strategy Out of Credit

    A Specific Application of Employment, Interest and Money [For my Fellows Economists].

    Press release of my open letter to Chairman Ben S. Bernanke:

    Chairman Ben S. Bernanke, Quantitative Easing Can’t Work!

    Yours Sincerely,

    Shalom P. Hamou AKA ‘MC Shalom’
    Chief Economist – Master Conductor
    1776 – Annuit Cœptis.

  2. MC Shalom Says:

    Ben S. Bernanke Exposed

    “The debate about the ultimate causes of the prolonged Japanese slump has been heated. There are questions, for example, about whether the Japanese economic model, constrained as it is by the inherent conservatism of a society that places so much value on consensus, is well-equipped to deal with the increasing pace of technological, social, and economic change we see in the world today.

    The problems of the Japanese banking system, for example, can be interpreted as arising in part from the collision of a traditional, relationship-based financial system with the forces of globalization, deregulation, and technological innovation (Hoshi and Kashyap, forthcoming). Indeed, it seems fairly safe to say that, in the long run, Japan’s economic success will depend largely on whether the country can achieve a structural transformation that increases its economic flexibility and openness to change, without sacrificing its traditional strengths.

    In the short-to-medium run, however, macroeconomic policy has played, and will continue to play, a major role in Japan’s macroeconomic (mis) fortunes. My focus in this essay will be on monetary policy in particular. Although it is not essential to the arguments I want to make—-which concern what monetary policy should do now, not what it has done in the past—-I tend to agree with the conventional wisdom that attributes much of Japan’s current dilemma to exceptionally poor monetary policy-making over the past fifteen years (see Bernanke and Gertler, 1999, for a formal econometric analysis).

    Among the more important monetary-policy mistakes were 1) the failure to tighten policy during 1987-89, despite evidence of growing inflationary pressures, a failure that contributed to the development of the “bubble economy”; 2) the apparent attempt to “prick” the stock market bubble in 1989-91, which helped to induce an asset-price crash; and 3) the failure to ease adequately during the 1991-94 period, as asset prices, the banking system, and the economy declined precipitously

    Bernanke and Gertler (1999) argue that if the Japanese monetary policy after 1985 had focused on stabilizing aggregate demand and inflation, rather than being distracted by the exchange rate or asset prices, the results would have been much better. Bank of Japan officials would not necessarily deny that monetary policy has some culpability for the current situation. But they would also argue that now, at least, the Bank of Japan is doing all it can to promote economic recovery.

    For example, in his vigorous defense of current Bank of Japan (BOJ) policies, Okina (1999, p. 1) applauds the “BOJ’s historically unprecedented accommodative monetary policy”. He refers, of course, to the fact that the BOJ has for some time now pursued a policy of setting the call rate, its instrument rate, virtually at zero, its practical floor. Having pushed monetary ease to 2 Posen (1998) discusses the somewhat spotty record of Japanese fiscal policy; see especially his Chapter 2.its seeming limit, what more could the BOJ do? Isn’t Japan stuck in what Keynes called a “liquidity trap”?

    I will argue here that, to the contrary, there is much that the Bank of Japan, in cooperation with other government agencies, could do to help promote economic recovery in Japan. Most of my arguments will not be new to the policy board and staff of the BOJ, which of course has discussed these questions extensively. However, their responses, when not confused or inconsistent, have generally relied on various technical or legal objections—- objections which, I will argue, could be overcome if the will to do so existed.

    My objective here is not to score academic debating points. Rather it is to try in a straightforward way to make the case that, far from being powerless, the Bank of Japan could achieve a great deal if it were willing to abandon its excessive caution and its defensive response to criticism.”

    Prof. Benjamin Shalom Bernanke
    Japanese Monetary Policy: A Case of Self-Induced Paralysis?
    For presentation at the ASSA meetings, Boston MA, January 9, 2000.

    So Mister Chairman Ben S. Bernanke is not fit to deal with the present situation he does not even readily understand.

    If short-term risk free interest rates are at 0.00% doesn’t that mean that credit is worthless?

    A Credit Free, Free Market Economy will correct all of those dysfunctions.

    The alternative would be to wait till, on the long run, most of our productive assets get physically destroyed either by war or by rust.
    It will be either awfully deadly or dramatically long.

    In This Age of Turbulence People Want an Exit Strategy Out of Credit,
    An Adventure in a New World Economic Order.

    We Shall Cancel All Credit Bearing Debt.

    A Specific Application of Employment, Interest and Money [For my Fellows Economists].

    Exit Strategy Out of Credit

    Press release of my open letter to Chairman Ben S. Bernanke:

    Chairman Ben S. Bernanke, Quantitative Easing Can’t Work!

    Yours Sincerely,

    Shalom P. Hamou AKA ‘MC Shalom’
    Chief Economist – Master Conductor
    1776 – Annuit Cœptis.

  3. hpx83 Says:

    Dear fellow capitalist,

    Have you heard this? Otherwise I recommend it. Scary shit though.

    Link

  4. lobobreed Says:

    hpx83 — One can see why Ron Paul chose Peter Schiff as his economic advisor in his campaign. Schiff ought be more careful than badly scaring people by confusing them with the facts. Americans don’t want to hear facts and logic; they want feel-good inspiration. It’s up to the Long-Bond Shorts to wake them up. — Silverwolf

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