“These bank runs would create massive deflation, international depression, and the collapse of the division of labor.” Particularly what I do not understand is what the collapse of the division of labor is. Do you know what that is?
An analogy for The Division of Labor is an internal combustion automobile engine, or a living human being, where the oil in the engine and the blood in the human being represent money and the Division of Labor is represented by the pistons, valves, gears, bolts, hoses, wires in the engine, and heart, lungs, veins, arteries, muscles, and brain in the human being.
Each part in the engine, and each part in the human body, and each Job in the economy is connected by various avenues, paths, channels, roads, arteries, membranes, and mediums of exchange where current stuff flows, in the engine to lubricate, in the human body to refuel and remove waste, and in the economy to produce usable things, abundant things, out of unusable things or scarce things.
Take away the oil in the engine and the engine dies, and then a contract is sent out to Halliburton, or a new Chinese company instead, and the engine is rebuilt, and the engine runs again, and the engine works for the Legal Criminals.
Take away the blood in the human body and the body dies, and then a contract is sent out to any remaining humans to make more slaves, and they obey without question, and a new slave is produced, with more blood self contained, so long as it is fed with at least a bare minimum of necessary things, and the human body, the slave, works for the Legal Criminals, without understanding, without question.
Take away the Only money, from the economy, and do not allow a replacement to be invented, produced, or used by the economic body, and each person can only make as much as a single person can make, alone, disconnected from anyone else, and a the economy dies, and a contract is sent out to Goldman Sachs, or The Federal Reserve, or a new Cabal in China, and new money is sent in to save the day, to rescue the starving economic body on life support, and the economy returns to life, working for the Legal Criminals, obeying blinding and in return for blind obedience the economic engine is pumped up, and torn down, on a regular basis, to keep the fools power-less, and those who operate the controls POWERFUL.
Division of Labor includes the workings of Specialization and Economies of Scale.
We have gone through this before and now it may make more sense.
Division of Labor/Specialization/Economies of Scale are like lubrication in the engine, but more than that, because the engine utilized mechanical advantages, leverage in gear reduction, fuel flows un-combusted into engines, is then combusted, and the release of energy forces things to move, so as to do work.
Division of Labor/Specialization/Economies of Scale are like living skin cells connected to living blood cells connected to living muscle cells, connected to living brain cells, all doing special things all at once and the result is living hearts, living limbs, living brains, and a living being.
Division of Labor/Specialization/Economies of Scale are what Edward G Griffin says is the advantage of two people and many people all cooperating and having much more power to accomplish work than each person working separately.
Division of Labor is merely someone washing the cloths and someone else needing clean cloths at work to fix the water pipe that keeps water flowing to the washing machine.
Without division of Labor how long will it take one person to travel to the moon if there was no way to divide the labor among any other person, whereby the one person had to do every job, know every skill, plan the trip, design the mission, fly the rocket, and land on the moon?
I can't happen.
Without division of labor the concept of specialization is meaningless, as the single person may be better at finding food, but having no division of labor the same person has to also be sufficiently capable of finding shelter. With Division of Labor and Specialization working the best at finding food specialize in finding food, and the best at finding shelter specialize in finding shelter, and the mechanism for knowing who is better at what is equitable commerce, or more precisely the fact that those who do things best are able to reduce the cost of doing so, and therefore those specialists force everyone else out of business in that job, voluntarily, not criminally.
Economies of scale, on the other hand, does not require division of labor or specialization, but when economies of scale is added to division of labor and specialization then costs can be reduced exponentially better because of the added POWER of division of labor and specialization to the POWER of Economies of Scale.
Economies of Scale is illustrated very well with the farmer, who could be a single person all alone on a distant planet, with no other person that needs any food, or Economies of Scale could be many farmers on earth, whereby all the work need to make 1 ear of corn produces only 1 ear of corn.
If the economy of the scale is to produce 1 ear of corn and only 1 ear of corn is produced, then all the work required to produce 1 ear of corn is the cost of producing 1 ear of corn.
Total POWER consumed to produce 1 ear of corn can be measured as X.
That is the economy of that scale.
The entire cost of farming is consumed in the work of producing 1 ear of corn.
If the farmer produces 1000 ears of corn then the Economy of that Scale is this:
X is only marginally increased, for practical, and measurable reasons, the farmer makes a whole row of corn plants, not just one plant. The cost is almost the same as it is to make 1 as it is to make 1000 ears of corn.
The farmer who makes 1000 ears of corn now has too much corn?
The farmer makes 1 ear, eats it, then starts all over to make another ear of corn.
That is an Economy of Scale - just not a very smart one, but at least that farmer may be smart enough to avoid "providing the means by which we suffer", as that farmer may use his own corn money instead of the fraudulent Federal Reserve Notes.
The farmer making 1 ear of corn, then starting all over after eating it, making another ear of corn next season, at least, isn't having that ear of corn stolen by the Legal Criminals, and then the farmer is left only with the cob.
The farmer making 1000 ears of corn, spends a little more time than the famer making 1 ear of corn, but that farmer can then feed pigs with the corn, make corn meal, etc., and this is called banking, or value storage, as corn meal flows into a bank called a granary, hedging against famine, and other reasons for banking, or saving, for a raining day.
That is Economies of Scale.
Adding Economies of Scale to Specialization and Division of Labor is the way that human beings can exponentially increase their power to make more out of less, which makes the quality of life better, the standard of living go up, and the cost of life become lower, as less work is required to accomplish the same net rate of production, or less work is required to accomplish an exponentially increasing rate of production, which can result in abundance, quickly, which is exactly what Legal Criminals cannot allow, because they they would be priced out of the market, having nothing to do.
Crime only pays well when criminals take over government.
"Why can’t Von Mises’ free banking be the umbrella under which 100% reserve banking can compete along with zero regulated banks? Free banks would make up their own rules anyways, so if some wanted to go with the 100% reserve theory they could. May the best banks win."
Now you see why my find in my study of Rothbard is so important.
I can find the relevant quote on this forum, since I have copied and pasted it onto this forum, and I think that this quote is what pushed the Austrian Economist Forum operators into censorship mode, sending me off their forum and into internet exile - as far as they are concerned.
Note: Negative 14 votes on a Ron Paul site, and I've been supporting Ron Paul for 25 years.
Relevant Rothbard quote:
Egalitarianism as a Revolt Against Nature and Other Essays
THE SPOONER–TUCKER DOCTRINE: AN ECONOMIST’S VIEW
Actually, in contrast to collectivist anarchists and to many other types of radicals, Spooner and Tucker tried to use economics rather than scorn it as excessively rational. Some of their fallacies (for example, the “law of cost,” the labor theory of value) were embedded in much of classical economics; and it was their adoption of the labor theory of value that convinced them that rent, interest, and profit were payments exploitatively extracted from the worker. In contrast to the Marxists, however, Spooner and Tucker, understanding many of the virtues of the free market, did not wish to abolish that noble institution; instead, they believed that full freedom would lead, by the workings of economic law, to the peaceful disappearance of these three categories of income. The mechanism for this peaceful abolition Spooner and Tucker found—and here they unfortunately ignored the teachings of classical economics and substituted instead their own fallacies—in the sphere of money.
The two basic interrelated fallacies of Spoonerite theory (and the theory of all schools of writers who have unkindly been labelled by economists as “money-cranks”) are a failure to understand the nature of money and the nature of interest.
There is no mention of the actual work done by Spooner on money. This is the actual work done by Spooner on money:
Compared to Equitable Commerce that work is pure Capitalism, so why does Rothbard ignore and discredit that work?
Now these quotes from Rothbard (same source):
Rothbard page 215-216
Teh Spooner-Tucker Distortion
"It should be remembered by radicals that, if they wanted to, all workers could refuse to work for wages and instead form their own producer's cooperatives and wait for years for their pay until the products are sold to the consumers; the fact that they do not do so, shows the enormous advantage of the capital investment, wage-paying system as a means of allowing workers to earn money far in advance of the sale of their products. Far from being exploitation of the workers, capital investment and the interest-profit system is an enormous boon to them and to all of society."
Note the use of the sub-human category of "worker", as if an employer, lender, banker, or other specialist of any kind does not "work".
What makes a "worker" a "worker"?
I think the concept here is "blaming the victim", or transference, or projection. The so called "capitalist" works to make employment scarce, by monopolizing the money supply, and then making money abundant for the monopolists, but scarce for the victims, and then any "system name" can be used, any name at all, for it is the same "system" of stealing power and then using the stolen power to steal more, so the "interest/profit/system" works as good as any.
Rothbard is resorting to deception, for the man is not as ignorant as those quoted words suggest. There are many examples of workers, so called, who seek, find, invent, or somehow GET purchasing power, and as a group those workers construct a competitive production facility, no different than "capitalists", unless the clothing worn by one group is different, and therefore that is the difference, the same employment of capital, or credit, or financial instruments, are passed among the traders to result in the same, or better, products.
Why would Rothbard, or anyone else, fail to recognize a situation where a group of skilled laborers find investors, they do so themselves, and they can do so by creating I.O.U.s, in the form of coupons, to sell to material suppliers, constructors of buildings, tool suppliers, and other people who may be convinced of the value in the coupon, where the coupon is a reduced price (below cost) of a specific number of the products that the "workers" or worker/self-financing/self-employer group will eventually produce, once they secure enough credit in these various ways. They could, just as easily as any one else, sell company stock too.
What makes one person, by executive fiat, be a worker, and then another person, the same magic wand waved, is a capitalist?
It is all a big lie.
It is the same old Master/Slave or Criminal/Victim scenario or "system".
Change the name on the "system" of exploitation, and it appears not to be exploitation to the exploiters and their hired writers?
"Your word “Scarceonomics.” Is it pronounced scarc e o nomics?"
Sometimes. Other times I pronounce it scarce O nomics.
"Or is it scarce o nomics with just a long o sound in the middle and the e being silent?"
Yes, either or, and I am not a good speaker because I often improvise pronunciations "wrong".
"As in if you can’t beat them join them? As in there is actually a decision to make where one might vote for the candidate under who the collapse of the economy will happen more quickly so as to raise the value of gold instead of voting for a more fiscally responsible candidate who might be better economically for the country?"
It is worse that that for reasons we have already gone through, and I think there was confirming reinforcement from scripture, but I can't remember that well right now. The "hedging" actually drives the result, as in futures/put options and other manipulations, all that is spelled out in Jim Bell's Assassination Politics, which was just an essay, but it was an expose', really, on the way things actually work.
The case of Put Options on the Airliners that were involved in the False Flag that became known as 911 were "bets" on that Airline stock price falling, so...how did those people know, in advance, that only those Airlines would have their stock prices drop suddenly?
It is all an internal game, played by those who know how the game is played, so they play the game, because they know, and the average Joe Tax Payer, or the average Jane Military Volunteer, thinks We are the Good Guys, and "our" government is the Leader of the Free World, with "our" Free Markets, and "our" Constitution, and "our" Money.
Rothbard is taking American "workers" to task for being too stupid to finance their own shops if there is a demand for what those workers can make?
Look into PayPal, read that book about PayPal Wars.
That is a major capitalist success story, HUGE, looking at a few Americans blazing the trail on into the future.
The Gold Bug Crowd, as far as I know, discredit electric cars, solar panels, competitive money, and for what reason?
They don't say.
They resort to deception instead, when challenged with the facts.
Those are roughly half of the Austrians.
This is a familiar story.
Roughly half of the Founding Fathers were on the Legal Crime side.
It pays well?
"After reading your reply am I correct in saying: An equitable trade would be one in which both parties are happy with the trade but also it is one in which no deceit, violence, or cost is passed to either trading parties or to innocent by-stander(s)"
Yes, and a 5 year old, or younger, child understands this to be a fact, easy, self-evident, factual understanding of reality.
So what happened in between the time when we are 5 years old, where self-evident facts are as obvious as the nose on your faces, and now, when these easy to see facts are so well hidden from view?
"Speaking of Silver. I was wondering, Joe. Does the title “Gold Rules!” inspire you to write a book? Knowing me, I will never finish. If it is a title or one which a volume(s) may be written under you are welcome to it."
Book work is on my horizon, but that is the problem, I have to get to work more often, and in a more focused, narrow, corridor. Thanks for all the encouragement and help. We both appear to be somewhat neutral, or stuck in between gears, and so book work may not progress.
"Along with my chemical mess up, I am feeling very unsure of myself and my words so I may not write for a while."
I may also find other things to do, for awhile.