While scavenging around SI, I find that our old buddy Ahahaha has got some clues. He has got the basics right. He is doing a bit of a riff on free market money. He referred to an old post of his. <To: Bexar who wrote (165) 5/15/1999 9:03:00 PM
From: ahhaha Read Replies (2) of 587
The BOE is irrelevant. If gold or gold stocks rise, what they said will be forgotten. If they fall, it won't matter since a break down from these levels takes out the 9/1/98 bottom and refutes the thesis upon which the current advance is based.
It is my thesis. No one else in the world has expressed to me a valid reason for holding gold. The reasons given are hollow. My reasons are solid and confront the greatest bankers and economic thinkers in the world. They are Greenspan, Teitmeyer, and Friedman. If you can't refute them, you might as well hang up on gold.
Probably Friedman is closest to my view because I'm his student, but the others are his students also. Yesterday I heard an interview of Miltie. He said that the FED was doing a great job. It is. What is surprising is that he has never conceded much to analytical management and price manipulation and never has said they were doing a good job in quite the way he did. He sounded old and somewhat befuddled, but you can't underestimate his comprehensive knowledge and acumen.
I would not have made the remarks he did because to admit that the FED is doing a good job is to condone the job that they do. This is where all the error takes place. Friedman was implying that price engineering in a free market is acceptable. It never is. I assume it is Friedman's view that interest rate fixing below the market's cost of funds is an acceptable way to create money, since to say the FED's is doing a good job embraces that the job can validly be done in this manner without gross distortions evolving infinitesimally. The problem is that the distortions grow until their scale brings about unforeseen side effects. The market is being precluded from reflecting the effect of the marginal distortions. The market is being precluded from doing its essential function. The market is being precluded from achieving equilibrium. It is the disaster of intervention and it is pretense to knowledge to intervene.
Friedman now and Greenspan last Fall must publicly acknowledge these truths by their actions and words. They are failing to do so. This is part of the undetectable alteration of the conceptual milieu when concession to principle is made and it is an insidious process which converts the greatest minds into fools. Olde fools.
So I have now gone beyond my teachers. Actually they have been passed by the very truths they spent all those decades expounding. I haven't done anything, but I am out sitting my opponents and they are making concessions which throw the integrity of their work out the window. I guess it's Ahhaha against all the experts in the world. I don't see how they have a chance since I'm betting on the free market and they are betting on the fine tuning ability of the human intellect. That's what you end up having to do when you are comfortable too long and it is evidence that you are getting olde. >
Grand Control is a major problem in human realms. It's a historical norm that alpha males and their smart courtiers run the show and the concept of free markets does NOT sit with that. The one that needs to go is of course the Grand Control concept.
Unfortunately, the majority of people are in thrall to Stockholm Syndrome so like Jim Jones's and David Koresh's acolytes, they are true believers. So Grand Control remains human destiny for now.
Mqurice |
