The Mint

Copper Price per Lb: $3.36
Oil Price per Barrel: $80.42

Key Indicators for June 27, 2012

Corn Price per Bushel: $6.42
10 Yr US Treasury Bond: 1.62%
FED Target Rate: 0.16% ON AUTOPILOT, THE FED IS DEAD!

Gold Price Per Ounce: $1,585 PERMANENT UNCERTAINTY

MINT Perceived Target Rate*: 0.25%
Unemployment Rate: 8.2%
Inflation Rate (CPI): -0.3%
Dow Jones Industrial Average: 12,627

M1 Monetary Base: $2,192,300,000,000
M2 Monetary Base: $9,933,900,000,000

Economics, Freedom, Politics, True Capitalism

You Might be a Socialist if…

March 5, 2012 David Mint

3/5/2012 Portland, Oregon – Pop in your mints…

Nearly 20 years ago, Jeff Foxworthy topped the comedy charts when he released his now famous album “You Might be a Redneck if…” While we have no illusions that today’s musings will attain the fame that Mr. Foxworthy’s have, today’s Mint is an entirely accidental homage to Mr. Foxworthy in which we present a series of one-liners which we hope will provide an invaluable service to the American public.

Namely, we aim to provide the public with comical assistance in helping one properly identify whether or not they are a Socialist. It is a handy, self convicting exercise which is meant to help all of us to identify and perhaps deal with our latent Socialist tendencies.

In other words, you may laugh heartily, knowing that the laughter, like the accumulated loss of capital in a Socialist society, is at the expense of the proletariat. Enjoy:

You might be a Socialist if… (with apologies to Mr. Foxworthy):

You default to the government when asked who should solve a social problem

You get a measure of self righteous gratification when passing through a body scanner

You believe in economic equality

You have attempted to define economic equality

You make special exceptions for yourself when defining your concept of economic equality

You still believe in economic equality after attempting to define it

You are a member of a labor union

You wish you were a member of a labor union

You wish you were an unemployed member of a labor union

You believe that tariffs save jobs

You believe that limitations on immigration save jobs

You believe that taxes create jobs

You believe that regulations create jobs

You vote for tax increases

You vote for a representative government which asserts authority over those who are not permitted to vote

You are entirely comfortable living in a world where the “end justifies the means”

You regularly give unsolicited advice to strangers

You get angry when such advice is ignored

You use a central bank issued currency as a savings instrument

You have attempted to describe the economic benefit of homogenized interest rates

You prefer a higher national GDP to a higher personal income

You believe that certain projects are so big that only the government is qualified to do them

You can say “government efficiency” with a straight face

You have ever defended TARP on the grounds that a nebulous “greater disaster” was averted

You’ve referred to “Cash for Clunkers” as good for the environment

You’ve referred to “Cash for Clunkers” as good for the economy

You’ve referred to war as good for the economy

You’ve referred to a natural disaster as good for the economy

You believe that there is a universally fair price for certain goods or services

You believe that said universally fair price should be a dictated by the government

You would feel guilty paying less than said universally fair price

You think you are saving money because an expense is tax deductible

You have uttered the words “necessary evil” as an explanation for a moral contradiction

You have uttered the words “the lesser of two evils” to explain an unpopular decision

You use the words “quality” and “equality” interchangeably

And finally, the last one we can think of for today, which, as you can see, if far from qualifying as a punch line:

Your list of inalienable rights extends beyond or excludes life, liberty, and property

If you have said “that’s me” to one or more of the above, you might be a socialist. If you find that you truly are a Socialist, take comfort in the fact that you form part of a large and vocal majority. The most logical response, if this is the case, is to fully embrace one’s socialist identity and to leave behind the inherent contradictions of calling oneself a “liberal” or “conservative.”

There is absolutely no shame in identifying as a Socialist. As Polonius urged his son so we urge you, fellow taxpayer, “To thine own self be true.”

However, if it disturbs you to have identified with any of the above statements, please continue to peruse The Mint, as all of us can aspire towards embracing True Capitalism, and move towards creating a future full of the blessings of real freedom for our children.

Stay tuned and Trust Jesus.

Stay Fresh!

Copper Price per Lb: $3.84

Key Indicators for March 5, 2012

Oil Price per Barrel: $106.97

Corn Price per Bushel: $6.66

10 Yr US Treasury Bond: 2.01%

FED Target Rate: 0.11% ON AUTOPILOT, THE FED IS DEAD!

Gold Price Per Ounce: $1,705

MINT Perceived Target Rate*: 1.00% AWAY WE GO!

Unemployment Rate: 8.3%

Inflation Rate (CPI): 0.2%

Dow Jones Industrial Average: 12,964

M1 Monetary Base: $2,199,000,000,000

M2 Monetary Base: $9,759,800,000,000

November 23, 2011 David Mint

Why the morally corrupt are assured of promotion in and leadership of the Might Makes Right ideological system – Part II

11/23/2011 Portland, Oregon – Pop in your mints…

If you were not able to join us yesterday for Part I, please take a brief moment to review it by clicking here:

Why the morally corrupt are assured of promotion in and leadership of the Might Makes Right ideological system – Part I

We will pick up where we left off…

The acts which are required to carry out an economic system doomed to failure inevitably insures that those who lead would be the worst amongst us in terms of adhering to any sort of moral code, for they have chosen to pursue the economic or political program above the obligations of morality, no matter what the cost. They possess the ability to mute their conscience and oversee acts that are increasingly despicable and outrageous in pursuit of the aims of the program.

Hayek goes on to argue that as the Totalitarian economic and social program inevitably begins to fail, the leader of said system would increasingly deem it necessary to employ a larger number of individuals to enforce the increasing sacrifices required to continue the program. He offers three reasons why this inevitable outcome further assures that the leader surrounds himself with and encourages the promotion of those who are capable of the worst forms of moral corruption:

“First, the higher the education and intelligence of individuals become, the more their tastes and views are differentiated. If we wish to find a high degree of uniformity in outlook, we have to descend to the regions of your moral and intellectual standards where the more primitive instincts prevail. This does not mean that the majority of people have low moral standards; it merely means that the largest group of people whose values are very similar are the people with low standards.
Second, since this group is not large enough to give sufficient weight to the leader’s endeavors, he will have to increase their numbers by converting more to the same simple creed. He must gain the support of the docile and gullible, who have no strong convictions of their own but are ready to accept a ready-made system of values if it is only drummed into their ears sufficiently loudly and frequently. It will be those whose vague and imperfectly formed ideas are easily swayed and whose passions and emotions are readily aroused who will thus swell the ranks of the totalitarian party.
Third, to weld together a closely coherent body of supporters, the leader must appeal to a common human weakness. It seems to be easier for people to agree on a negative program — on the hatred of an enemy, on the envy of those better off – than on any positive task. The contrast between the “we” and the “they” is consequently always employed by those who seek the allegiance of huge masses. The enemy may be internal, like the “Jew” in Germany or the “kulak” in Russia, or he may be external. In any case, this technique has the great advantage of leaving the leader greater freedom of action than would almost any positive program.
Advancement within a totalitarian group or party depends largely on a willingness to do immoral things.”

The Might Makes Right ideology, then, far from being a viable alternative to True Capitalism, assures a slow march towards a society which openly ignores the rule of law and, as a consequence, quickly becomes devoid of morality.

Can you now see why the ideological battle between True Capitalism and Might Makes Right is much more than a simple choice of economic systems, rather, it determines the moral basis upon which a majority of the society’s members will act.

Unfortunately, we have a shining example of the phenomenon of the worst rising to the top in Jon Corzine, former governor of New Jersey and CEO of the now infamous investment bank, MF Global. Mr. Corzine is a career investment banker and politician. In other words, he has been firmly indoctrinated and skillfully trained in two of the most destructive trades known to mankind.

Mr. Corzine allegedly saw nothing wrong with raiding the cash accounts of MF Global’s clients in a vain attempt to stave off the firm’s bankruptcy which was declared on October 31, 2011. There is no way to sugar coat what happened in the days leading up to MF Global’s demise. MF Global allegedly robbed its clients’ accounts to meet its own obligations. The fact that the commodity exchanges have been allowed to operate without immediately making the defrauded clients whole has caused an unprecedented breach of the trust which underpins the smooth operation of these exchanges.

Perhaps Mr. Corzine thought he was still a politician. In Government, it has become a common and acceptable practice to rob a legally established trust fund and replace it with the government’s IOUs.

Mr. Corzine is but the most recent example of the level of hubris and moral corruption required to occupy a high level post in the government and financial sectors circa 2011.

The MF Global bankruptcy and subsequent actions taken by the regulators have called into question whether or not the rule of law will prove supreme in such a situation. As a society increasingly leans towards a Might Makes Right ideology, the excuses for ignoring the rule of law proliferate. Hayek observed the inextricable link between the rule of law and Freedom when he wrote the following:

“NOTHING distinguishes more clearly a free country from a country under arbitrary government than the observance in the former of the great principles known as the Rule of Law. Stripped of technicalities, this means that government in all its actions is bound by rules fixed and announced beforehand.”

The most famous modern excuses for ignoring the rule of law during the war on terror and the financial crises are: “These actions are taken in order to protect the American people,” and “These actions have been taken to ensure the stability of the Financial System.”

Fellow taxpayer, do you personally feel safer than 10 years ago? Do you believe that the financial system is more stable than five years ago?

These are important questions, for the answer may reveal which side of the ideological battle one identifies with. True Capitalism or Might Makes Right, for there is no ideological middle ground.

The governments of the world are busy tirelessly advancing a failed program. It should come as no surprise, then, that nearly every action that the governments have taken to fight the war on terror and the financial crisis only seem to have made the original problem worse.

It is clear that as long as the Might Makes Right ideology is embraced by institutions and governments, those who are best able to ignore basic morality and the rule of law are most likely to populate their halls of power.

It should come as no surprise, then, that man’s only hope for justice is to reject Might Makes Right and embrace True Capitalism. Only then will lasting peace and prosperity be attainable.

Stay tuned and Trust Jesus.

Stay Fresh!

Copper Price per Lb: $3.34
Oil Price per Barrel: $98.01

Key Indicators for November 23, 2011

Corn Price per Bushel: $5.98
10 Yr US Treasury Bond: 1.95%
FED Target Rate: 0.08% ON AUTOPILOT, THE FED IS DEAD!

Gold Price Per Ounce: $1,700 PERMANENT UNCERTAINTY

MINT Perceived Target Rate*: 2.00%
Unemployment Rate: 9.0%
Inflation Rate (CPI): -0.1%
Dow Jones Industrial Average: 12,096

M1 Monetary Base: $2,121,700,000,000 RED ALERT!!! THE ANIMALS ARE LEAVING THE ZOO!!!
M2 Monetary Base: $9,644,200,000,000 YIKES UP $1 Trillion in one year!!!!!!!

Economics, Gold, Politics, Silver, The Mint, True Capitalism

Why the morally corrupt are assured of promotion in and leadership of the Might Makes Right ideological system – Part I

November 22, 2011 David Mint

11/22/2011 Portland, Oregon – Pop in your mints…

After a brief break in our faithful correspondence, we are compelled to pick up the proverbial pen to complete an incomplete thought in a vain attempt to eat Thanksgiving dinner in peace. If you are a new reader of The Mint, we will simply relate that the Mint is the product of a deep felt agitation by its author. It is what could be referred to as therapy. The thoughts, once on paper, leave us in peace. Until then, they stir, deep in our spirit, waiting to escape via these words.

How very fortunate and long suffering you are, fellow taxpayer.

Before we continue our mantra of Anarchy, True Capitalism, Natural Law, and Might Makes Right, we will share a few important observations.

First, the MF Global implosion is now reported to have left a $1.7 Billion hole in the capital base of a highly leveraged commodity and derivatives market. MF Global was a primary dealer, one that had the unconditional trust of the exchange and other secondary commodity dealers. It was a silent pillar of these markets. The aftermath of their implosion, both in loss of capital and confidence, has only begun to unfold. Commodity markets are no longer “safe” by normal standards. This situation is best watched by your money at a distance.

Second, while Europe implodes, the US has been spending most of its time firming its position in Asia. There has been speculation that the US is moving to aggressively devalue the dollar vis-à-vis the Yuan. Will it be the 10:1 reverse split that we have speculated about here? No one knows, but it would appear that the US Dollar will not serve as a reliable store of wealth in the short term. Silver and Gold come to mind as viable substitutes as this drama plays out.

Bloqueo Boliviano — Occupiers take note of a Bolivian tactic of blocking major thoroughfares

Finally, It appears that the Occupy protesters are now wising up and using tactics which we call the Bolivian tactic, that of blocking major thoroughfares. It is much more effective, not to mention exciting, than urban camping. As a practical matter, if your livelihood in any way relies on a major thoroughfare being open in an area where the protests are growing, we suggest that short term contingency plans be considered.

These events and any pain they cause should be short term, maybe three to four months of adjustments, if they are allowed to simply run their course. If the Government continues to intervene, they will plague us indefinitely. We pray for the former and prepare for the later.

With that off our chest, we continue pondering life as we know it. Our question today is: Why does it seem that the worst morals seem to come out on top? First, a glance at Isaiah:

“ And I will make boys their princes, and infants shall rule over them. And the people will oppress one another, every one his fellow and every one his neighbor; the youth will be insolent to the elder, and the despised to the honorable,” Isaiah 3:4-5

Have you ever complained about a politician? The government? How about your boss? The current state of society? If you haven’t, you are indeed a rarity in this day in age, for there is much complaining, and seemingly much to complain about.

How did we arrive at this, fellow taxpayer? If democracy is supposed to deliver the cream of the crop in terms of leadership in the government, why does it seem that most politicians are the epitome of immoral liars?

This question was thrust upon us as we were reading the “Is there no shame” rant at zerohedge.com and came across the words “Hayek’s theory that the worst always rise to the top.” We then perused Hayek’s theory in an excerpt from the “Road to Serfdom.”

In the section entitled “Why the Worst Get to the Top,” Hayek states that:

“There are strong reasons for believing that the worst features of the totalitarian systems are phenomena which totalitarianism is certain sooner or later to produce.
Just as the democratic statesman who sets out to plan economic life will soon be confronted with the alternative of either assuming dictatorial powers or abandoning his plans, so the totalitarian leader would soon have to choose between disregard of ordinary morals and failure. It is for this reason that the unscrupulous are likely to be more successful in a society tending toward totalitarianism. Who does not see this has not yet grasped the full width of the gulf which separates totalitarianism from the essentially individualist Western civilization.”

Suddenly, it all makes sense. As man has generally chosen to pursue the Totalitarian, or what we call the Might Makes Right ideology, it would follow that those thrust into power should be among the most immoral, unscrupulous, human beings on the planet.

In summary, the Might Makes Right ideology unwittingly promotes the worst individuals to positions of power, as they are best suited to carry out the immoral and contradictory demands which are invariably made of the persons occupying positions of power in such a system.

Depressed? Don’t be. It doesn’t have to be this way. More tomorrow.

Stay tuned and Trust Jesus.

Stay Fresh!

Copper Price per Lb: $3.34
Oil Price per Barrel: $98.01

Key Indicators for November 22, 2011

Corn Price per Bushel: $5.98
10 Yr US Treasury Bond: 1.95%
FED Target Rate: 0.08% ON AUTOPILOT, THE FED IS DEAD!

Gold Price Per Ounce: $1,700 PERMANENT UNCERTAINTY

MINT Perceived Target Rate*: 2.00%
Unemployment Rate: 9.0%
Inflation Rate (CPI): -0.1%
Dow Jones Industrial Average: 12,096

M1 Monetary Base: $2,121,700,000,000 RED ALERT!!! THE ANIMALS ARE LEAVING THE ZOO!!!
M2 Monetary Base: $9,644,200,000,000 YIKES UP $1 Trillion in one year!!!!!!!

Economics, Gold, The Mint, True Capitalism

Natural Law: The Golden Rule

November 15, 2011 David Mint

11/15/2011 Portland, Oregon – Pop in your mints…

We continue today with our brief examination of the foundations of society here at The Mint. We are finding that while society appears complex on the surface, the further that its elements are reduced, the foundation is extremely, perhaps painfully simple. Any complexity that we experience is not a product of an inherent complexity in natural laws, rather, it is a product of the human relationships and actions that are a result of man’s choice of response to the demands of natural law.

For those of you joining us for the first time, let us get you up to speed with a synopsis:

Anarchy, the lack of government, is man’s natural state. It is an ultimate given. It simply is. A clear understanding of the current state of affairs depends upon grasping this inescapable fact.

In response to Anarchy, man has two choices. He can choose to mutually cooperate with his fellow man, respecting both his fellow man’s right to live and his right to property, or He can choose to take his fellow man’s life and property through the use of force. We have called the path of mutual cooperation “True Capitalism” and the path of forceful coercion “Might Makes Right.”

Ideologically, there is no middle ground between these two paths. In practice, men live at various points on the spectrum between these two ideological extremes.

We argue that True Capitalism is the response which creates the greatest benefits for the greatest number of people. The proof of the superiority of True Capitalism is that it allows man to best adapt and react to the inescapable demands of Natural Law. Like Anarchy, Natural Law is immutable. It does not change, for its statutes are etched in the foundations of the earth itself.

Last Thursday we presented the Natural Law of supply and demand, a law that deals with what is concrete and tangible. Today we will deal with second law which primarily governs human relationships and works in conjunction with the law of supply and demand.

It is popularly called the Golden Rule.

The Golden Rule is articulated and exalted as an ideal in some form in nearly every society and religion on the planet. The Bible famously articulates the Golden Rule in the following way:

“Love your neighbor as you love yourself” (Deuteronomy 6:5)

It is important to note that the Golden Rule is a positive declaration. It is a call to action. In many societies and religions the Golden Rule is stated in a negative declaration, a command to abstain from action. An example of this can be found in Hinduism:

“One should never do that to another which one regards as injurious to one’s own self.” (Anusasana Parva, Section CXIII, Verse 8 )

The negative declaration is sometimes called the Silver Rule. It is important to understand that only the Golden Rule, the positive call to action, is Natural Law. Observance of the Silver Rule, while highly advisable, does not rise to the level of Natural law. However, it is a logical corollary to the Golden Rule.

Compliance with the Golden Rule, as with all natural law, is indispensible. It is ignored at one’s peril, for it operates regardless of one’s acceptance of its validity or not. The Truly Capitalistic society greatly facilitates and encourages compliance with the Golden Rule. Conversely, compliance is hindered in a society that has embraced Might Makes Right as its ideological response to Anarchy.

“Wait a minute,” some of you are saying, “I’ll give you that the Golden Rule is a great ideal but Natural Law? No one requires it of me, right?”

Remember, the essence of Natural law is that it is universally true and applicable to all. The law of Supply and Demand, for example, can be ignored for a time, but every moment of ignorance causes the consequences of that ignorance to accumulate further until a final breaking point is reached. The result of the failure to comply with the law of supply and demand is material scarcity and ultimately death.

The same is true of the Golden Rule. Every moment of ignorance causes the consequences of that ignorance to accumulate further until a final breaking point is reached. In the case of the Golden Rule, the result of the failure to comply is by definition a failure to properly comply with the law of supply and demand as well, with the end result, as mentioned above, being material scarcity and ultimately death.

Compliance with the Golden Rule is a necessary prerequisite to compliance with the law of supply and demand, for the Golden Rule governs relationships in the purest sense. This is evident to most who have taken the time to ponder it. So broad are the implications of the Golden Rule that the origins of both the rule of law and more recently the concept of human rights can be traced to it.

What thrusts the Golden Rule out of the realm of being simply a good idea and into the realm of Natural Law is this: All attempts to comply with the Golden Rule serve to coordinate the actions of men in such a way that the greatest number of human needs are met in the most efficient way. Any deviance from the Golden Rule, by definition, is a failure to meet human needs in the most efficient way. Again, by definition, failure to meet human needs in the most efficient way means that a greater number of human needs are simply not being met.

Far from being simply a moral standard, the Golden Rule is elemental in the determination of supply and demand. As the equilibrium price serves as the beacon of production for the law of supply and demand, the actions taken by men, governed by the Golden Rule, initially determine the supply and demand factors which, when combined, produce the equilibrium price. In this sense, the Golden Rule serves as the beacon for both supply and demand which enable the creation of an initial equilibrium price.

How can the Golden Rule run ahead of the Law of Supply and Demand? This is one of the beauties of Natural Law. Natural Law always compliments and never contradicts itself.

An Example of the operation of the Golden Rule

Each human being has needs and wants which are sources of uneasiness. Human Action, to paraphrase Von Mises, consists of men acting to dispel their most intensely felt uneasiness. If a man is hungry, he will direct his actions towards getting something to eat. Other tasks will be put on hold until this intensely felt uneasiness is relieved.

The operation of the Golden Rule, in the example of mans the need to alleviate hunger, operates in the following way. A man feels hunger. He has two options before him with which to fulfill this need. First, he can forage, hunt, fish, or perform any series of actions with the end of fulfilling this need. Second, he can voluntarily cede some of his production (or production for others via his contribution of labor) or appeal to the charity of someone else in return for something to eat.

As the second way is the most expedient, it is likely that a majority of people will elect this option. Now reflect upon the Golden Rule: “Love your neighbor as you love yourself.” The person who chooses to comply with the Golden Rule will quickly understand that if he has the need to be fed, it is likely that his neighbor (in this sense, neighbor would mean anyone in the geographical realm in which he is equipped to serve, up to every person on the planet if it is possible for him to serve them) is likely to have the same need to some degree. With this revelation, he unwittingly is on his way to discovering demand.

As he seeks to voluntarily fulfill this demand, he will need to either produce the supply of food himself or he can voluntarily cede some of his production (or production for others via his contribution of labor) or appeal to the charity of someone else in return for a supply of food with which to provide his neighbor with something to eat. The information that his adherence to the Golden Rule provides him with regarding the needs of his fellow man will serve to guide his speculation as to where to best employ his limited time and capital.

It is a simple example, yet its simplicity serves to highlight the operation of the Golden Rule and can apply to any situation regardless of the complexity. The Golden Rule, in modern business school lingo, is the origin of market research; it is the impulse for entrepreneurial activity and is the basis for subsequent human actions.

The Question of Charity

What about charity? Wouldn’t adhering to the Golden Rule quickly lead to widespread scarcity and bankruptcy as catering to everyone’s preference to receive something for free would quickly deplete all available supplies and production?

The answer lies in the Golden Rule itself: “Love your neighbor as you love yourself.” Would you like to provide something for someone and not receive compensation? Our guess is only if you are in a position to give something away and are willing to do it. If all members of society are complying with the Golden Rule, the norms of charity will fall under the governance of the law of supply and demand.

The beauty, the perfection, of the Golden Rule is that above all it demands balance in human relationships and by extension, balance in the supply and demand of material goods.

True Capitalism Enable Compliance with the Golden Rule

True Capitalist ideology completely subjects itself completely to the Golden Rule and, in return, most accurately directs human actions towards fulfilling the most urgently felt needs of the greatest number of people.

Inefficiency is naturally wrung from the system at its source as errors are quickly corrected and information is quickly disseminated via equilibrium prices. The proper identification of demand by default leads to the most efficient allocation of scarce resources possible. The liberty of life and property which is ensured in the Truly Capitalistic system allows men to supply this demand by employing their limited time and resources without unnecessary hindrance.

The Golden Rule may not provide everyone with what they expect or what they think they desire, but complete submission to it not only creates the most efficient allocation of resources, it gives humans the best information to base their attempts to mutually cooperate to fulfill the myriad of human desires. It has the added social benefit of creating the greatest amount of harmony and goodwill possible in human relations.

Stay tuned and Trust Jesus.

Stay Fresh!

Copper Price per Lb: $3.49
Oil Price per Barrel: $99.39

Key Indicators for November 15, 2011

Corn Price per Bushel: $6.45
10 Yr US Treasury Bond: 2.06%
FED Target Rate: 0.08% ON AUTOPILOT, THE FED IS DEAD!

Gold Price Per Ounce: $1,781 PERMANENT UNCERTAINTY

MINT Perceived Target Rate*: 2.00%
Unemployment Rate: 9.0%
Inflation Rate (CPI): 0.3%
Dow Jones Industrial Average: 12,096

M1 Monetary Base: $2,215,000,000,000 RED ALERT!!! THE ANIMALS ARE LEAVING THE ZOO!!!
M2 Monetary Base: $9,532,200,000,000 YIKES UP $1 Trillion in one year!!!!!!!

Economics, Gold, Silver, The Mint

Natural Law: the transcendental importance of Supply, Demand, and Equilibrium Prices

November 10, 2011 David Mint 2 Comments

11/10/2011 Portland, Oregon – Pop in your mints…

As Europe continues to unravel, we have been exploring, perhaps by accident, the foundations of society here at The Mint. In case you have missed it, here is a brief recap:

Anarchy, the lack of government, is man’s natural state. It is an ultimate given. It simply is. A clear understanding of the current state of affairs depends upon grasping this inescapable fact.

In response to Anarchy, man has two choices. He can choose to mutually cooperate with his fellow man, respecting both his fellow man’s right to live and his right to property or He can choose to take his fellow man’s life and property through the use of force.

In other words, man may choose the path of True Capitalism or Might Makes Right. Ideologically, there is no middle ground. In practice, men live at various points on the spectrum between these two extremes.

We have argued that True Capitalism is the response which creates the greatest benefits to society in terms of peace, security, capital accumulation and material prosperity while the ideology of Might Makes Right by definition is the antithesis of the Truly Capitalistic ideology and consequently would create the greatest detriment to society.

Ironically, all of the Nation States in existence derive their power from the adoption of the Might Makes Right ideology by a majority of the people. How, then, can we be so certain that True Capitalism is the proper response to Anarchy if the majority has embraced Might Makes Right?

The proof of the superiority of True Capitalism is that it allows man to best adapt and react to the inescapable demands of Natural Law. Like Anarchy, Natural Law is immutable. It simply is. Man is bound to it whether he chooses to recognize it or not. It does not change, for Its statutes are etched in the foundations of the earth itself.

It is as Ayn Rand stated: “You can ignore reality, but you can’t ignore the consequences of ignoring reality.”

In our example, we take the reality that Rand refers to as Natural Law. Natural Law may be ignored, but ignorance always comes at a price.

The first of these Natural Laws is that of supply and demand. The Law of supply and demand, simply stated, holds that supply of and demand for a good or service will tend to find a point of equilibrium at a certain price expressed in terms of money (the equilibrium price). On a graph the relationship looks like this:

Supply and demand Graph — A Graphical Representation of Supply, Demand, and Equilibrium Price

In simple terms, it is a way of expressing what most people intuitively know. When an item is increasing in price, one of two things is happening. Either people are demanding more of the good or service or the supply of the item at the previous equilibrium price point is diminishing.

Naturally, the opposite is also true. When an item is decreasing in price, one of two things is happening. Either people are demanding less of the good or service or the supply of the item at the previous equilibrium price point is increasing.

In either case, the change in the price of the item in monetary terms is providing crucial information to all of those either producing or consuming the good or service in question, for it guides their inherent speculations.

(Editors Note: Speculation, far from being an illegal or immoral activity, is essential to everyday survival and without it, there is no hope of achieving equilibrium prices and therefore both production and consumption tend to cease. It is important to clarify that the illegal or immoral speculation that is villianized today is generally the act of investing the money of other parties in types of speculations without the knowledge or consent of the other party to do so.)

As a producer, if one sees the price of the good or service that one provides increase, the producer will strive (speculate, as it were) to either increase production to take advantage of the opportunity to profit and/or others will strive to produce the good or offer the service for which the price is increasing.

As a consumer, if one if one sees the price of the good or service that one consumes increase, the consumer will strive to either decrease consumption to mitigate the effects of the higher prices or others will strive to find a less expensive substitute for the good or service to offer in the place of the good or service for which the price is increasing.

Stay focused, here comes the important part. The increase in production will increase supply which, as the Natural Law of supply and demand dictates, will eventually lower the equilibrium price as the increase in demand is satisfied. Likewise the decrease in demand will have the effect of increasing the available supply.

In either case, the individual decisions (again, speculations, as it were) of the producers and consumers serve to increase the available supply. The process occurs tacitly, and is an example of what Adam Smith famously called the Invisible hand of the market.

To further sum it up in what may seem at first a paradox, the best cure for higher prices is higher prices.

There are no exemptions from the natural law of supply and demand, however, there are numerous examples of Nation States, guided by the principal that Might Makes Right, manipulating the pure message that price is intended to send to producers and consumers.

This manipulation may be achieved in overt ways, such as price controls (the setting the price of an item by decree). However, most people understand that price controls are bad, so today’s Nation States commonly resort to other tactics. Amongst these tactics are taxes, subsidies, and the granting exclusive privileges to either buy or sell the good or service in question via regulating the purchase of or granting monopolies to produce it.

Regardless of the tactic employed, the result is to always a manipulation of the equilibrium price for a good or service and consequently distort the signal which guides the speculations and ultimately the actions of all producers and consumers. The result of society as a whole is always and in every case achieving suboptimum results to those that would be achieved if the price signal were as pure as possible.

In the case of Central Banking and centralized currency control, the Nation State, in addition to the tinkering mentioned above, adds the complication of manipulating the currency that the equilibrium prices are expressed in. This further distorts the sacred price signal that is universally relied upon to direct the actions of producers and consumers.

You can imagine the confusion occurring all around us, every day.

The True Capitalist ideology, on the other hand, completely subjects itself completely to the law of supply and demand and, in return, provides producers and consumers with best opportunity to obtain and act on the most accurate price information possible.

A Truly Capitalist society quickly settles on Gold and/or Silver as currency and does not recognize the right of anyone to tax, regulate, or grant monopolies. The Truly Capitalist Society continually works to bring supply and demand into balance in the simplest, most efficient way possible: By relinquishing all control to the market participants and by extension, natural law.

Inefficiency is naturally wrung from the system as firms that depend upon the false price signals or special protections or subsidies provided under the Might Makes Right ideology quickly go out of business.

True Capitalism not only quickly eliminates economic waste, it quickly directs the surplus capital into its most urgently needed employ, and it is accomplished by simply obeying and embracing the natural law of supply and demand.

Stay tuned and Trust Jesus.

Stay Fresh!

Copper Price per Lb: $3.39
Oil Price per Barrel: $98.04

Key Indicators for November 10, 2011

Corn Price per Bushel: $6.49
10 Yr US Treasury Bond: 2.07%
FED Target Rate: 0.08% ON AUTOPILOT, THE FED IS DEAD!

Gold Price Per Ounce: $1,749 PERMANENT UNCERTAINTY

MINT Perceived Target Rate*: 2.00%
Unemployment Rate: 9.1%
Inflation Rate (CPI): 0.3%
Dow Jones Industrial Average: 11,861

M1 Monetary Base: $2,122,700,000,000 RED ALERT!!! THE ANIMALS ARE LEAVING THE ZOO!!!
M2 Monetary Base: $9,507,600,000,000 YIKES UP $1 Trillion in one year!!!!!!!

November 9, 2011 David Mint

Responses to Anarchy: True Capitalism vs. Might Makes Right

11/9/2011 Portland, Oregon – Pop in your mints…

We have been mulling over the basic tenets of True Capitalism, the economic system which is man’s most productive response to the state of Anarchy in which he finds himself. Far from being an undesirable reign of chaos, Anarchy, the absence of government, is the natural state of man. If Anarchy is simply an ultimate given, then it is man’s response to Anarchy that must be examined.

In response to this natural state, man has two options: He can choose to mutually cooperate with his fellow man, respecting both his fellow man’s right to live and his right to property or He can choose to take his fellow man’s life and property through the use of force.

Anarchist symbol — Responses to Anarchy: True Capitalism vs. Might Makes Right

What may come as a surprise is that all of the Nation States on the planet have come into existence by and base their operations on the principal of Might Makes Right. No matter how much freedom the Nation State may allow its citizens, it must be recognized that the Nation State stakes its claim on the individual’s life at birth, by declaring them a citizen and in many cases requiring either military service or registration to be conscripted into military service should the nation state deem it necessary. The Nation State then stakes its claim on the individual’s property through either taxation or a myriad of rules and regulations regarding the use of said property.

Far from being an ultimate given, the Nation State, at a basic level, is an entity which provides varying levels of security and welfare services. What differentiates the Nation State from other agencies providing security and welfare services (think security firms and insurance companies) is that the Nation State enjoys a geographic monopoly which it enforces by both the threat and use of violence against its captive audience, otherwise known as citizens.

This is the world today, and any sober look at the facts will lead one to conclude that man has chosen Might Makes Right as the dominant response to our Anarchic natural state.

Yet there is a better way. True freedom and prosperity can be found by embracing True Capitalism and abandoning the Might Makes Right doctrine. In contrast to Might Makes Right, a revolution cannot be undertaken to change man’s response to Anarchy from Might Makes Right to True Capitalism by violence, for by definition violence is simply a furthering of the Might Makes Right response, not a step towards a Truly Capitalistic society.

As the famous David Wilcox lyric goes: “resentment doesn’t die with the dead”

Rather, a revolution which would naturally, by definition, bring about a Truly Capitalistic society involves rejecting all aspects of the Might Makes Right doctrine. It involves renouncing any and all choices which make use of violence, whether undertaken personally or by directing the Nation State to use violence on one’s behalf, to take the life or property of another while at the same time asserting one’s rights to have their own life and property respected as inviolate.

On the surface, a Truly Capitalistic society may not look that different from the current structure of things. There may arise security and insurance companies which serve geographical areas in tandem in such a way that they closely resemble current Nation States. However, assuming that the paradigm is changed and man truly embraces Truly Capitalistic ideology, nobody will be compelled under the threat of violence to be a client of the security or insurance company. Rather, individuals holding property would be free to choose between defending and securing their own property and income streams or voluntarily contracting with the security and insurance companies for these services.

In a Truly Capitalistic society, the division of labor would flourish and the property and resources would quickly pass from unproductive hands to productive hands, organically balancing the competing goals of maximizing output and capital preservation.

Companies who abuse their clients would quickly be abandoned and weakened while those who deliver the best service and value to their clients would prosper and attract more clients. This rule naturally applies equally to security and insurance companies in stark contrast to the monopoly on these services currently claimed by the Nation State.

The lack of compulsion under the threat of violence is the key difference between the response of True Capitalism and Might Makes Right. Might Makes Right naturally engenders fear and evokes a response to others based on this fear. True Capitalism engenders, encourages, and rewards trust and evokes a response of trust in others.

Only upon this trust can a truly free and prosperous society blossom.

The choice between True Capitalism and Might Makes Right is one which must be made. Anarchy demands a response, and these two options are the only responses known to man. All other supposed choices are simply points on the spectrum between these extremes, but the choice of guiding ideology determines where man and society are moving along this continuum.

The ideologies of True Capitalism and Might Make Right are like magnets, and remaining at a point in between them on the continuum is not an option, for society is always being pulled in one direction or the other depending upon the dominant ideology adopted by a majority of the people.

This is an ideological battle which must be won if mankind is to survive and prosper. Life and death are laid before us. Choose life, that you may live.

Stay tuned and Trust Jesus.

Stay Fresh!

Copper Price per Lb: $3.44
Oil Price per Barrel: $97.42

Key Indicators for November 9, 2011

Corn Price per Bushel: $6.61
10 Yr US Treasury Bond: 1.96%
FED Target Rate: 0.08% ON AUTOPILOT, THE FED IS DEAD!

Gold Price Per Ounce: $1,789 PERMANENT UNCERTAINTY

MINT Perceived Target Rate*: 2.00%
Unemployment Rate: 9.0%
Inflation Rate (CPI): 0.3%
Dow Jones Industrial Average: 11,936

M1 Monetary Base: $2,122,700,000,000 RED ALERT!!! THE ANIMALS ARE LEAVING THE ZOO!!!
M2 Monetary Base: $9,507,600,000,000 YIKES UP $1 Trillion in one year!!!!!!!

November 2, 2011 David Mint

True Capitalism: Superior to and incompatible with the Nation State

11/2/2011 Portland, Oregon – Pop in your mints…

Recently we have submitted for your consideration, fellow taxpayer, that Anarchy is man’s reality. It is not a choice, it is an ultimate given, it simply is. All understanding of the current political and social structures is greatly facilitated by one’s acceptance of this simple fact.

In fact, one’s ability to act and react to the changes in the current political and social structures depends upon accepting and embracing Anarchy as the basis for reality and learning to operate in the True Capitalistic system which organically emerges as men learn that mutual trust and cooperation are in their rightly understood self interests, and that he who is to lead must truly become the servant of all.

To truly embrace this, for, as we have established, it useless to reject it, we must first understand something about the nature of mankind. First and foremost, man, left to his own devices, is completely devoid of the ability to do the right thing. He doesn’t have it in him. He is lazy, self-serving, and completely evil. He needs God and his fellow man to be able to do anything productive, altruistic, or remotely good. A full defense of this statement is a subject for another day (although the evidence is all around us), we mention it here only to underscore the need for a framework within which mankind can avoid both self and mutual destruction.

The only reliable framework which has emerged out of Anarchy not only addresses the problem of human nature but also serves to turn man’s weaknesses into strengths. This framework is True Capitalism. By allowing market forces to work with as little hindrance as possible, mankind can insulate itself from descending into chaos and catastrophe. As we have stated previously:

Out of Anarchy, the Truly Capitalistic System would ORGANICALLY emerge, and with it a new dawn for humanity, built on mutual interest and almost endless capital formation which will engender a spontaneous and dynamic social order, and a society without borders that would enjoy freedom and prosperity that we cannot even imagine under current conditions.

How would this work? In some cases, it may be that the catastrophes simply cancel each other out. In others, it may be that a counterforce in the market arises to crush the catastrophic force before it can do much damage. No one can truly say. Yet the fact that no one person can say what will work is precisely why it works.

The greatest virtue of True Capitalism is the speed with which it corrects errors in judgment. Bad idea, malinvestment, frauds, and even violent and property crime are quickly dealt with.

A_market_anarchism_flag — Market Anarchism

But who sets the rules? By definition, there are no rules apart from what has been mutually agreed upon by consenting parties. That said, it is easy to imagine how quickly a myriad of rules may spring forth in True Capitalism. The key difference between these rules and those declared by a governmental decree is that compliance with the agreed upon rules in True Capitalism is voluntary, making compliance likely. For to violate the rules of an agreement is to forfeit the advantage imagined to be gained by entering into the agreement.

Even the primordial requirements of the right to life and property would organically be honored, for they are primordial to all humans, whether they readily admit it or not. Being primordial, securing of the life and property of others would be amongst the first series of contracts that any person would enter into, whether directly or indirectly.

Of course, mankind is completely subject to natural (or divine, as one prefers) law, True Capitalism simply allows the fullest and most complete expression of the operations of natural law to operate in the dealings of men.

Did God not warn the people not to desire a king?

To fight True Capitalism, mankind’s least flawed response to his Anarchic surroundings, is to cause or submit to chaos and misery. Yet every nation on the planet is devoted to some degree in the fight against True capitalism. Why? Simply because the nation state, under the guise of being the most perfect expression of man’s good intentions, today occupies the throne which rightly belongs to True Capitalism.

The two are the antithesis of one another. A nation state regulates by edict, True Capitalism regulates by example. A nation state is rigid, where True Capitalism is pliable. Hence, where True Capitalism will bend but never break, the nation state is repeatedly smashed to pieces when faced with change.

Moving to a less philosophical level, how can we be sure that Anarchy is the basis of man’s current existence? Because the institutions which supposedly offer the best option to embracing Anarchy are beginning to succumb to the punishments they have built up in their losing fight against True Capitalism.

Yes, Anarchy is now trumping the nation state. We urge you to watch closely the phenomenon which is currently playing out in Greece, for it is highly likely to play out in nearly every Western Democracy before Anarchy comes in to give its people a bear hug.

Thankfully, natural (or divine) law will not change. One’s time would be better spent understanding the immutable truths of natural law, for they will prevail. What is natural law? We’ll give you hint. It involves supply and demand, and loving one’s neighbor as himself.

Believe.

Stay tuned and Trust Jesus.

Stay Fresh!

Copper Price per Lb: $3.58
Oil Price per Barrel: $92.81

Key Indicators for November 2, 2011

Corn Price per Bushel: $6.45
10 Yr US Treasury Bond: 2.01%
FED Target Rate: 0.08% ON AUTOPILOT, THE FED IS DEAD!

Gold Price Per Ounce: $1,737 PERMANENT UNCERTAINTY

MINT Perceived Target Rate*: 2.00%
Unemployment Rate: 9.1%
Inflation Rate (CPI): 0.3%
Dow Jones Industrial Average: 11,836

M1 Monetary Base: $2,071,500,000,000 RED ALERT!!!
M2 Monetary Base: $9,607,200,000,000 YIKES UP $1 Trillion in one year!!!!!!!

October 28, 2011 David Mint

The Tenets and Benefits of True Capitalism

10/28/2011 Portland, Oregon – Pop in your mints…

We have been kicking around the idea of True Capitalism and cannot shake it. In our experience, the only hope we have of shaking it and moving on is to write it out, so here it is. Thank you for listening, fellow taxpayer. It may be simply a directionless rant, then again, we may solve the world’s problems. Either way, we aim to make it entertaining.

We will start with what we know:

True Capitalism is man’s most perfect expression of democracy

True Capitalism enables Justice

True Capitalism enables Equality

True Capitalism enables true prosperity

True Capitalism is born in and comfortable with Anarchy

True Capitalism is radically trusting in people

The Breakdown of society is a breakdown of Trust, If there is to be hope for the future, we must collectively learn to trust again. True Capitalism is a constant test of trustworthiness and a betrayal of trust is quickly and harshly dealt with. Conversely, those found trustworthy stand to be richly rewarded in a Truly Capitalistic system. The meting out of natural rewards and consequences increases general trustworthiness.

True Capitalism improves society by carrying out the consequences of actions in a rapid and impartial manner. It encourages men and women to serve one another as they find that serving one another is in their mutual interest. In fact, it is in their rightly understood self interest (to quote a term from Mises) to serve one another.

Intrigued? So are we. But what exactly is True Capitalism?

True Capitalism is a radical respect for life and private property. It is the recognition that the right of an individual to life and private property are inviolate and that individuals, assured that their life and property are no endangered, will reap the fullest benefits of the division of labor and mutual cooperation which men and women on this earth are capable of.

Participation in the True Capitalistic System is not voluntary, for True Capitalism, as we will find, is not an idealistic concept, rather, it is an ultimate given. Apart from participation, however, all other actions and agreements which do not violate other’s rights to life or property are completely voluntary.

Apart from being a part of the system, nothing done in the True Capitalistic System is purely obligatory. This is where True Capitalism differs from what has come to be known as “Crony Capitalism,” the system in which most of the world currently operates which is full of random taxes, fees, regulations, and laws which require compulsion or coercion by a nation state in order to be paid or obeyed.

At the other end of the spectrum, in the Truly Capitalistic system, actions such as paying an entity or observing a regulation may be strongly advisable to the point of being considered a necessity, but not taken under compulsion or the threat of violence by a nation state or another actor in the system.

In a Truly Capitalistic system, the best way to get ahead (obtain more opportunities, leisure, or whatever one desires) is to make oneself useful to his or her fellow man or woman. The nature of the system is to reward those who best serve others. Those rewarded then find themselves able to consume goods and services freely produced by their fellow man by using the resources they have obtained by doing the same.

If one lifts the veil of the machinations of today’s nation state, it is abundantly clear that this is more than idea, it is natural law.

We submit for your consideration, that, far from being unattainable ideals, True Capitalism (and by extension, Anarchy), are ultimate givens within which the current system of nation states are forced to operate.

If the nation state were to cease to exist, it can be argued that Anarchy would reign. This is technically true. Unfortunately, too many individuals believe that Anarchy would lead to chaos. We believe that quite the opposite is true.

Out of Anarchy, the Truly Capitalistic System would ORGANICALLY emerge, and with it a new dawn for humanity, built on mutual interest and almost endless capital formation which will engender a spontaneous and dynamic social order, and a society without borders that would enjoy freedom and prosperity that we cannot even imagine under current conditions.

Believe.

Stay tuned and Trust Jesus.

Stay Fresh!

Copper Price per Lb: $3.67
Oil Price per Barrel: $93.32

Key Indicators for October 28, 2011

Corn Price per Bushel: $6.55
10 Yr US Treasury Bond: 2.33%
FED Target Rate: 0.07% ON AUTOPILOT, THE FED IS DEAD!

Gold Price Per Ounce: $1,743 PERMANENT UNCERTAINTY

MINT Perceived Target Rate*: 2.00%
Unemployment Rate: 9.1%
Inflation Rate (CPI): 0.3%
Dow Jones Industrial Average: 12,231

M1 Monetary Base: $2,071,500,000,000 RED ALERT!!!
M2 Monetary Base: $9,607,200,000,000 YIKES UP $1 Trillion in one year!!!!!!!

Economics, The Mint

The Three Ring Circus Begins

October 25, 2011 David Mint

10/25/2011 Portland, Oregon – Pop in your mints…

What a difference a day makes. Yesterday, it appeared that the authorities had most of the problems that ail the world’s economy resolved. All they needed was a little more time, money and cooperation to implement their plans and the good times would be rolling once again! Today, instead of coordinated, determined action, it appears that a three ring circus of sorts is beginning.

In Ring 1, we have the European Clown Car: Yesterday, Europe looked ready to announce a plan to simultaneously solve the sovereign debt, banking, and resultant currency crises in one fell swoop. Today, it appears that Italy is balking at implementing a growth plan on moment’s notice and Germany and France will need a miracle to announce a credible Pan-European rescue package by tomorrow, their self imposed deadline. What a difference a day makes!

It should be clear by now to most sober persons that regardless of what is announced tomorrow, the Euro as a currency in its present form is not viable. It should also be clear that the countries who have adopted the Euro will give away what is left of their sovereignty in a vain attempt to preserve it.

Three Ring Circus — Step Right Up! The Three Ring Economic Circus Begins

In Ring 2, we have the American Elephants: The US is quietly completing three Bond auctions that will cause the national debt higher than the national GDP. The official total should eclipse GDP by the end of October. 100% of GDP is when the debt of a mere mortal nation (Greece, for example) has traditionally harkened national bankruptcy.

The only exception to this rule is in Ring 3, the Japanese Tight Rope Walker: Japan, where national debt is north of 200% of GDP. How do they avoid bankruptcy? Simple, they print money to pay the debt. As if to prove our point, today, the Bank of Japan decided that they have seen enough Yen appreciation and announced another five trillion Yen currency printing campaign.

When money doesn’t exist, the sky is the limit, which is why commodities and certain equities are set to explode to the upside. Bonds, while they may not fall in nominal value, will fall in relative value as they are repaid in severely depreciated currencies.

As if on cue, commodities took off today. How high and far they will fly this time is anyone’s guess.

As the circus gets underway, the sober amongst us are beginning to wonder, sometimes aloud, “if the Governments, banks, and monetary authorities cannot solve these problems, then who can?”

The answer, fellow taxpayer, is right under our fingertips. We, the People of the earth can solve it. The tool we have been given is our own wit and ingenuity. The only requirement is that we embrace True Capitalism, for better or for worse, for richer or poorer, until death do us part.

What is True Capitalism? It may be summed up as a deep, radical respect for life, liberty, and private property. It is an understanding that mutual cooperation is more often than not in our rightly understood interests (to use a Mises term). It is not simply a choice, it is the only choice. More to come.

Stay tuned and Trust Jesus.

Stay Fresh!