Secession Is Really Just Subsidiarity.

Balance and harmony and reciprocity are all part of the natural order. Subsidiarity is the reciprocal of federation and both are necessary for the advancement of civilization.

Federation is beneficial but when it is allowed to go beyond the bounds of moderation it is nothing but centralization which is obviously a movement towards tyranny.The rising cries for secession from the tyranny of centralization are really just the equilibrium forces at work, the appearance of moderating forces to move the order of things towards balance and harmony.

These are the early stages necessary for freedom of thought and the subsequent evolution and maturation of ethics. One of the great outcomes of ethical development will be the recognition that the ideology of statism is harmful to human civilization. 

When this arbitrary and ego-driven approach is finally relegated to the dustheap of fallacious doctrines it will be seen what wonders are possible for an unshackled humanity. The philosophy of classical liberalism provides the theoretical proof that there is not a void left behind when the State is dissolved but rather it is like a bird released from its cage.

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Inflation Series – Inflation Causes Malinvestment.

Inflation: Artificial expansion of the money supply.

Let’s start with supply and demand. The supply of loanable funds and the demand for loanable funds is part of the natural market mechanism that determines the market rate of interest. When allowed to operate this disequilibrium-tending-towards-equilibrium coordinates goods and services in the present and goods and services in the future.

When the currency is counterfeited by the central bank the funny money has to enter into the economy somewhere and by design the central bank uses the banking system to inject the expanded supply of money. If you visualize the effect of an increase in the supply of money (the supply curve moves to the right), now as loanable funds, you will see that the effect is to artificially push down the interest rate. 

The signal that is sent is that there is a greater supply of loanable funds. This alters the pattern of present goods and services and it alters the pattern of future goods and services. The faulty signal causes errors in judgment. The investment errors resulting from judgments made based on distorted prices – the interest rate is a price – causes malinvestment.

The regression theorem of interventionism ‘pins the tail’ of the tremendous costs associated with the errors caused by distorting the interest rate ‘on the donkey’ or ‘jackass’ – the interventionist central bank.

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Inflation Series – Inflation Is A Hidden Tax.

Inflation: Artificial expansion of the money supply.

Because of the way inflation is used to redistribute wealth towards those who have politically-favored connections (to the counterfeiting operation) this hidden tax is extremely regressive. It penalizes the poor (those who have none of the political connections enjoyed by the well-connected) to a much greater extent than the rich because the rich are more connected—directly or indirectly—to the early stages of the injection of the new funny money into the system.

Just like all taxes take some portion of the individual’s wealth at the time of the transaction the result is a diminished total value of income that can be used for living. But everyone knows how taxes are constantly taking their wealth. The common saying is “Only two things are certain: death and taxes!” Inflation is a hidden and extremely regressive tax that most people do not know enough about to be able to muster a concerted resistance.

And that is just the way the State likes it. Keep the people ignorant about this hidden tax because it then can continue to be used to extract wealth from the people and because a foolish population can easily be told that inflation is caused by all sorts of bogeymen; deflecting the ire of the masses (a regressive tax hurts the masses the most) away from the counterfeiting operation of the State.

Inflation is a hidden and extremely regressive tax which means that it is unjust and it is theft that is especially targeted at the masses.

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Inflation Series – Inflation Redistributes Wealth.

Inflation: Artificial expansion of the money supply.

When the money supply is artificially increased it has to be initiated by some entity; some legally-sanctioned or some illegal counterfeiting agency. If we assume it is an illegal counterfeiter then the first possessors of this new money have new wealth in terms of the goods and services received in exchange for pieces of paper not worth what they claim. The goods and services extracted decrease the wealth of the providers of goods and services because they get nothing in return. Wealth is redistributed towards the counterfeiters.

The same thing happens when the legally-sanctioned counterfeiters expand the money supply. Those who have first access to the new money gain wealth at the expense of those who receive it later on, after prices have adjusted upwards. This is the real reason why those in control of the money supply expand the money supply – they redistribute wealth towards themselves and those who are favored.

The well-known saying “The rich get richer and the poor get poorer.” is the direct and indirect consequence of the artificial expansion of the money supply. Instead of believing the statist diatribe that individual selfishness is the cause of the widening gap between rich and poor, you now are better able to see that it is inflation which being used purposefully to redistribute wealth and which is the primary cause of the extremes of wealth and poverty.

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Classical Liberalism In The Modern Age.

A person, man or woman, who espouses the classical liberalism tradition and therefore considers himself or herself a classical liberal has the following views:

  • Human beings are understood as subjective,
  • who use Aristotelian logic in a causal-realistic world,
  • who are adorned with values that originated from the milieu of the interplay of ethics and religion,
  • who recognize that law is to be discovered rather than created by fallible human minds,
  • and who recognize justice as that which causes voluntary social cooperation to flourish.

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