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Showing posts from December, 2014

Counterfeiting is the health of those who rule us

I found this re-posted on a Facebook page today, having originated from End the Fed

This is not so much posing a question as making a point.Nevertheless, how might a contemporary economist (i.e., an inflationist) address such a query, assuming it was serious?Here’s how I imagine she might go about it in an offhand manner.
In the US, counterfeiting is illegal only when some person or organization other than the Federal Reserve Open Market Committee practices it.  When politically-appointed bureaucrats print money, it's not only legal it's essential to the health of the economy.  If you don't believe me read the textbooks.  It turns out that what’s true on a micro level — that counterfeiting is theft — isn’t true on the macro level.  Only those committed to the principles of the Austrian school would disagree.  And the world today little resembles the teachings of the Austrian school.
Without the Fed and its fiat machine we would have to rely on the market to provide the m…

Think small — very small — incredibly small

Do you have forebodings about the future?  I do, which is why I’ve been looking closer at the transformations technology promises to bring us.
First, a brief review.  I’ve previously written about the rapid pace of technological development (here and here) and Ray Kurzweil’s point that though technology is growing exponentially, we experience it linearly, and we tend to base our expectations on our linear experience.  (See his essay “The Law of Accelerating Returns” for details.)



Here’s an example. When the Human Genome Project began in 1990 he predicted the project would be completed in 15 years.Almost no one believed him.After a year of work, biochemists had succeeded it transcribing one ten-thousandth of the genome.Seven years later a mere one percent had been finished.One imagines the laughing was well underway.But the project actually finished ahead of schedule, in 2003.
In The Singularity is Near Kurzweil explains how this happened: Scientists are trained to be skeptical, to speak c…