Comments on: Updated: The Politically Incorrect Guide to Capitalism

By: Alex

Alex — Sat, 28 Jun 2008 05:31:27 +0000

Haha, understood Bob. I see you are still as smooth as ever.

By: Bob Murphy

Bob Murphy — Fri, 27 Jun 2008 21:23:48 +0000

Steve,

I certainly agree that our present system was put in place through fraud and coercion. I think it’s theoretically possible for there to be fractional reserve banking in a pure libertarian society, but it might not be profitable. (I.e. the banks’ customers might insist on 100% reserves if the government isn’t stacking the deck.)

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Alex,

I’m not sure I understand you. If the country weren’t full of idiots who vote for professional liars, then my book would just be a curiosity. But in the present environment, we need to educate as many people as possible. So that’s why you should buy 7 copies. 🙂

By: Alex

Alex — Fri, 27 Jun 2008 03:39:29 +0000

Wow, it’s nice to see Robert Murphy on here! I bought one of his books on market anarchism – a fascinating read, and I used to correspond with the fellow.

These days I prefer to stay away from anything having to do with economics or liberty.

Problem is, it doesn’t matter how smart and knowledgeable I am. The country is run by idiots – and by idiots, I’m not necessarily talking about the pundits in our political parties. I am talking about the average american.

The average American is an idiot. He also controls the levers that manipulate who is in power.

In college, I’m learning quickly that Statism has engulfed the ideas that are taught.

I guess I shouldn’t be so negative, and I don’t want to discourage the purchasing of what is likely to be a very good book. But I have to ask; why bother?

By: Steve Stip

Steve Stip — Thu, 26 Jun 2008 18:26:41 +0000

Dr. Murphy,

Thanks for your response. It sounds like your book addresses my concern. But, I am puzzled. Do you not think fractional reserve banking dishonest? Just the history convinces me of that.
I’ve read Murray N. Rothbard’s book The Mystery of Banking. That book alone convinced me of the dishonesty of the system.

I don’t necessarily believe we need a gold system. Just, as you say, get government out of the money business.
Of course, the usual laws against theft and fraud should be enforced.

By: Bob Murphy

Bob Murphy — Thu, 26 Jun 2008 05:09:35 +0000

Thanks for the comments so far. Yes Joe Allen, you paraphrased it correctly, and yes I agree “we are so screwed.”

Steve Stip, I’m not sure exactly what you mean. But I do say that the Fed (or more generally, government interference in money & banking) is responsible for the boom-bust cycle, and that a 100% reserve system based on gold would work just fine.

By: Steve Stip

Steve Stip — Wed, 25 Jun 2008 13:40:42 +0000

Sounds like a good book. I don’t have to be sold on the benefits of economic liberty but I do insist on honesty. The black eye capitalism gets is, IMO, the result of the dishonest banking system it is built on. I hope this book addresses that point.

By: Joe Allen

Joe Allen — Wed, 25 Jun 2008 07:13:24 +0000

If I understand you, there are two types of participants in the commodity futures markets: hedgers and speculators. If the speculators are regulated out of business, the market will dry up due to lack of liquidity and likely re-emerge elsewhere, probably London. Without a domestic futures market, prices would become more volatile, ultimately making the industry less efficient and therefor making the commodity more expensive. Am I right so far? So McCain AND Obama say these evil speculators that provide liquidity and stability while absorbing risk must be stopped because they might provide both consumers and producers of oil a way to limit their downside exposure and losses.

We are so screwed.