the dollar vigilante blog

Does The Economy Need a Referee?

I recently appeared on Max Keiser’s "On The Edge" program.  Unbeknownst to the viewer, we were having major communication problems.  Max only could hear a small portion of what I said and I, likewise.  But, right at the very end of the interview the communications worked again… that’s when the interview finally got interesting.  Max stated that we “need a referee” in the economy.  I replied, “I disagree.  We don’t need a referee, I’m an anarchist…”

That was when the interview suddenly ended.  It’s too bad because at that point it had just gotten quite interesting.

Max was parroting a fairly typical statist argument that we need a neutral arbiter, like government, to have a monopoly of force to act as a “referee” to protect the exploited from being devoured by the exploiters, and from all of humanity devolving into eating each other.  This, simply is not the case.

First: Life isn’t a game, Max.  And all a coercive referee does is make things worse.  But, to go along with Max's analogy and to make that point, let’s look at some sports and how the rules and regulations influence their participants.
 
SOCCER
 
Or, as they say everywhere else in the world except the US and Canada: football.

In soccer, goals could be said to be a scarce resource.  Unlike a game like basketball, where there are hundreds of scores per game, in soccer there is often only one or two.  Like all games, soccer has a referee, and because goals are such a scarce resource the urge to manipulate the referee through diving is very high.

Furthermore, because there are very strict rules on things like physical contact and fighting it also encourages the participants to go to extremes in their attempts to manipulate the referee without fear of major repercussions.  This is what makes soccer players roll around on the ground like they just had their kneecaps blown off by a sniper rifle when even the slightest of contact occurs.  See the following video to see this isn't even an exaggeration!

Conclusion: When resources are tight and the referee plays such a big role in who can access those resources AND when there are very strict laws on any sort of contact it makes the participants act completely unnaturally and in immoral ways.

ICE HOCKEY

In ice hockey, goals are quite a scarce resource as well, but unlike in soccer the rules are not so strict on contact and self-policing.  In fact, fighting just gets you five minutes sitting in a box.

In this case there are much, much less occurrences of diving.  The reason is that if you do it there is a very good chance that a man nearly twice your size will come and beat you into submission and in many cases he won't even be penalized for it.

Because of this, rather than rolling around on the ice after being hit, because the referee has a smaller amount of say on who gets the scarce resources AND because you can get beaten up pretty bad for trying to manipulate the ref, hockey players have been known to play through broken legs, having 7 of their front teeth knocked out at one time and more.  In other words, by having the players police themselves there is far less “crime” and immoral action.
 
UFC FIGHTING
 
In Ultimate Fighting, there are almost no rules and the referee rarely has any say in the outcome of the fight.  In the UFC, fighters are highly respectful and usually pick up their opponent after defeating them, make sure he is okay and then they grab the microphone to tell the crowd what a great fighter and man he is.

Here, with almost no referee and no rules the people act highly civilized, proud and humble.

Conclusion?  Even in sports little or no refereeing is preferable to making the participants act civilized and with honor.

But, does the economy need a referee?
 
DOES THE ECONOMY NEED A REFEREE?
 
What Max is missing here is that the referee is the cause of all the problems we are witnessing in the financial world today.

In Max’s world, the referee is the state, and it is supposed to be a neutral arbiter of disputes between members in society.  In other words, in Max’s world, the state – a territorial monopoly on force that has never been used for good – is benign and good.  It is the classical left wing reaction to the current state of affairs.  It represents the views of many of the Occupy Wall Street protesters.

Max believes that the bankers control every aspect of our lives and the economy... and that in the end we control the state.  But these are scarcely half truths.  In reality, the state is used by the bankers to rig the playing field and to protect them from the real check on their affairs: free market competition.

Let’s not forget, the fractional reserve banking system is centralized and backstopped by government protections, like legal tender laws or monetary policy.

The referee was used to create this artificial, non-free market financial system where profits are private but losses are socialized.  There would be no investment banks that were massive and highly leveraged without the “referee” protecting them from competition and offering them the backstop to cover their losses when they do ultimately collapse... of course, all in the name of protecting the consumer.

Ludwig von Mises and Murray Rothbard argued that the best way to prevent inflation was not by outlawing it, or by forcing the central bank to adhere to some set of standards, which they would never do anyway, but rather by eliminating the legislation created by government (the “act”) that effectively cartelizes the industry (this is effectively state capitalism...aka fascism, corporatism, cronyism, etc.; as opposed to free market capitalism which precludes the use of initiatory violence or coercion).

Only under genuinely competitive free banking – where there is no central bank or legislation of any kind to help sustain fractional reserve banking -  would inflation not exist.  Each bank would worry about being called by its competitor if it over-inflated.  There’d be no one to bail them out.  Thus, they would not engage in the policy to begin with... it would be self destructive.

Instead, in today's world, the bankers set out to exchange favors with government.  The banks get their protection from competition, their bailout funds, and the ability to create deposits fraudulently (none of which could happen under a genuinely competitive environment) and the government gets a blank check; and they are in it together to keep it going as long as they possibly can.

Referee?  Hah.

COMPETITION IS THE REFEREE

The consumer’s best protection from exploitation and other shenanigans has always been competition.

Fascism, which is not the same as militarism, though it does lead to militarism, is a marriage between the statist left and the statist right; for the left it is the most practical application of socialism; for the right it is the most efficient means to protectionism and for “conquering” markets overseas.

The “referee” is largely the problem today.  It obscures the immoral reality and nature of the state.  The state can never be a neutral arbiter.  Life is not a zero sum game.  The free market is itself the best medium for democracy.  Every dollar counts in the market.  You can’t say that about every vote.  Those evil bankers that Max so despises fear competition more than they fear the referee.  And by even suggesting that the state can be a benign force for good Max is doing the bankers a great service.  He is fooling many into thinking the referee works for us, not the elite.

The free market system works because it is anarchistic; not because of the quality of the refereeing.

An anarchistic society would be one that is free of statist coercion, economic depressions, legislative injustice, and even waste.  It is not a vote for lawlessness and chaos.  The statist apologists like to argue that it represents just that.  But in fact it is the state itself that is the source of chaos.

We are seeing it everywhere in the world today.

Don’t be fooled into thinking that the banking elite is responsible for all of it, or that anyone could be exploited in a voluntary society.  If you want to check the bad guys, all you need to do is unleash the forces of competition...the people’s choice.

Until we see that as a society we will continue to have wars, chaos, poverty and turmoil.  In sports, the referee is often vilified and hated.  We need to take this approach with life's referee, the government, if we want a prosperous future.

The referee in life and the economy doesn't help make the game better, it destroys it.

Comments (52)

Jeff Berwick's picture

Hi Radek,Thanks for pointing that out. If Max had let me expand I would have said that we can use free-market referees (arbiters), but we do not need a referee foisted upon us via force who has a monopoly of force.

Shane's picture

@ Claymore1. What is the Government for you after all? It is a group of people who claim the exclusive right, usually within a certain geographic area, to initiate force in order to get others to accept their opinions as reality. It is a legalized mafia.2. By referee, I mean someone to whom, you (as an individual) or a group of persons (as a population) delegate to someone who thinks is better fitted for taking certain decisions, whether is a decision that affects an individual or a group of individuals.OK, let me ask you: Can I delegate authority to another individual which I don't have myself? Can I appoint a delegate for you and you for me?3. About The People, it's just an expression that I use to define a group of individuals that are actually the ones that decide who the referee should be. What makes any particular collection of individuals a "group" that decides who to appoint as referees? Should membership in a group be voluntary, or does that not matter?4. What is FREEDOM for you? What is your definition of Freedom?Its living w/an absence of coercion. Its ultimate ownership of one's self.5. I don't actually have a solution... that's why I making questions to the supposed people that truly understands how an Anarchical System works.Understanding the concept of "an anarchical system" (actually I'd call it the ABSENCE of a 'system') is very much different from being able to say, exactly, how state-created water monopolies in Portugal can be converted to a free-market enterprise. I am not an engineer or person w/experience w/running water-delivery services. That said, I imagine there are probably (somewhere) examples of successful conversions of public services into private ones. It certainly isn't an insurmountable problem. Many essential services are provided by the free-market (or whatever semblance of it remains) and I see no reason why the provision of water would be any different.

Gilberto's picture

Life is a game.To the degree that you are winning you will agree with that statement.To the degree that you are losing you will disagree with that statement.Life is a game to those who are winning at it.Cheers.

Radek's picture

Dear Jeff, Do you say that we do not need referee in economy or we do not need referees at all? If the former then I have no quarells wih you ;).If the latter, then how do you resolve the conflict between two people who are arguing and soon maybe killing each other because each of them claims that the other initiated the force first and he has the right to respond with appropriate force. I would say that in this situation we need a referee who will resolve those type of situations (answer the question who has initiated force and what reaction is appropriate).best,Radek

Claymore's picture

@mavaThanks for the explanation about English natives having difficulties in learning Russian. I didn't knew it could be so hard for them... I just have one small correction, Portuguese is not Italic but a Latin language descendant. Portuguese did not evolve from the Italic Language but directly from Latin and has influences from the northern Celtic and the Iberia Peninsula Galician which is spoken in a region called Galicia which belongs to Spain.I totally understand your thoughts about the voting system and I also agree. I always say to my friends, that it is impossible and completely inefficient for a Government to manage a country with 10 million citizens. For a Government to manage a country like the US or Brazil, or China (which is ruled by fear), it's simply inefficient...But this raises a question, when thinking about China for example... For centuries, they fought wars between regions and then, an Emperor (Qin Shi Huang if I remember) decided to unify all China regions under "the same heaven" and after that, Peace ruled through all of China for centuries, until the People Revolution. My question now is, would the world actually survive by each and everyone living without any of effort union? For example, why would i help someone and spend resources helping them, if I don't get any profit from them? (this is a though connection to for example, the national health system)Thanks for your observation about learning Russian! :)

Claymore's picture

@ mava again..Sorry, I made a mistake. I confused Italic with Italian... Yes, Portuguese is an Italic descendant... Sorry for my confusion!! I just noticed when I saw the translation at Wikipedia, lol

mava's picture

Claymore,Russian may be easy to learn for you, as you speak Portuguese. As a native Russian speaker, I find interesting correlation in grammar between Russian and Spanish (Spanish and Portuguese being both West-Iberian must have a degree of similarity, so I continue the similarity I see with Spanish to the similarity I would expect with Portuguese) and if I am not trying to over-think it, I sometimes just get the meaning of a short phrase all together. However, Russian is very hard for English speakers (English being Germanic and Portuguese being Italic probably have different degree of relation to Slavic). They face everything being different, the writing system, the grammar, the vocabulary.With a referee problem you might find it worthy to consider the difference between the vote and the choice.If You, I and Jeff are walking through the forest and come up to the fork in the path, You and I might choose to go north, while Jeff might choose to go south. That is choice. If, however, we were to take a vote, then Jeff would either have to walk with us to the north, or he might face the problem of existential sort. That is voting. The point here is that in the current system we do not make any choices with regards to our government referees. We vote. For instance, I do not vote, as I consider it immoral due to the difference just explained. Yet, I am governed by a referee I did not choose. Furthermore, even if I and Jeff, who I suppose did not choose this either, make a deal, this same government will attempt to judge our business deal, the fact that none of us have chosen it to be so notwithstanding.Notice how "Voted In" government always insist to corrupt our understanding of their uninvited violent interventionist nature by continuously referring to the voting as "choice". Obama, thus, is a liar in the base, since there is no "choice" that he ever offered to us, no matter the options that he had presented.

mava's picture

@KashyapMe too. I was pretty damn good at school, but only at physics, chemistry, math, geography, biology and geometry. I completely ignored all the bs they teach in history and literature. That was, still, a blue pill.So, anyway, I am very curious about science, but I believe that most of official science is a lie. This must be so, since the human nature doesn't change, and we know that all scientists were lying about geocentricity around Galileo's time, because we can read much earlier descriptions of heliocentricity from Greece, and even from Sumer. I assume for safety that most scientists are simply prostitutes today as the history shows they always were.With that said, I was reading on Economics when I came across the name of Maurice Allais, who also happen to observe an interesting effect during a solar eclipse. The way he explained it is that the space is not uniform in all directions. I think he is wrong, and the way to explain it is by accepting that the gravity is not a pulling, but a pushing force (not attractive but repulsive). If one assumes that, then it becomes clear that if there is gradient to the permeability of objects by such force, then there definitely can be an anomaly observed during an event such as eclipse.Conventional (I have a chair) science is saying that Allais lied about his observations without actually saying so.

Kashyap's picture

@Claymore,

Claymore's picture

Today I don't have much time to answer in detail so, here it goes...@ShaneYes, that's exactly my point.One question. What is the Government for you after all? You talk about the Government as an entity that "kills innocent people" in a very strong way... Are you referring to the US Government and their actions in Iraq and Afghanistan, or against the American People?By referee, I mean someone to whom, you (as an individual) or a group of persons (as a population) delegate to someone who thinks is better fitted for taking certain decisions, whether is a decision that affects an individual or a group of individuals. This is nothing more that defining individual roles in society, according to their past experience and rate of success in executing such roles. About The People, it's just an expression that I use to define a group of individuals that are actually the ones that decide who the referee should be. A question for you. What is FREEDOM for you? What is your definition of Freedom?I don't actually have a solution... that's why I making questions to the supposed people that truly understands how an Anarchical System works. :) If I had all the answers to my questions, I wouldn't be here investing my precious time :)Portuguese is the 1st most spoken language in South Hemisphere and in several growing markets. If you want to learn, search for a school or on-line lessons. :) I'm thinking in going back to my Russian Lessons. (Russian is very easy to learn)Sorry if my English is sometimes, awkward. @mavaWhen you said: "If you allow that the monopoly can lower the prices to undercut the competition, and survive as a monopoly, then there is no way I can explain how competition would work."well, that's a big question I also have that no one has answered me yet... About the Depopulation issue, I'm not going to comment such issue since in my opinion, it is a very complex theme. It seems that you are regretted for mentioning but don't worry, I'm not going to continue trough it.Although I completely agree that the world has now a very big problem in matters of Natural Resources. We are growing to big, to fast for the resources that are at our disposal, but if you notice, that growth is coming from the middle east and Africa. In the rest of the world, it is actually decreasing. (Statistics in Portugal shows that if my country continues in the same path of population decrease, by the end of the century we will have a population decrease from 10 million to 6 million).This is a problem and I actually see a Big World War in the near future to battle for natural resources...I actually agree in certain approaches that an Anarchist system uses to solve problems. My interest comes from the job I have as a Researcher (and PhD Student), because of the failure of the current Democratic systems and also, because of the little I know about Anarchism. (in Portugal, most ppl think that Anarchists are those kids that appear in the news trashing and destroying everything).@KashyapKashyap, First of all, the Newton's Projectile Movement Model is flawed... why? Because the error when predicting the position of a projectile that travels at speeds near of the speed of light, the position error is massive. This means that the Newtons model does not work for objects accelerating or travelling at speeds near of the speed of light. Einstein showed this and proved it. This is Pure Physics and I learned this when I had 19 years (I'm 27 btw).Mathematical models (which Newton Projectile Model also is), like I said, are used to Approximately Approach a certain behaviour. There will always be an error! Like their is in Physics and other Science disciplines...When you say:" A model useful for rockets cannot be used to

mava's picture

I too, have noticed that Claymore uses the term "referee" ambiguously, knowingly or not. Sometimes he refers to government assigned referee, and sometimes he refers to a free-market referee. He probably just didn't realize the difference here.He has shown that he is capable of freely choosing an entertainer, without any government decree. I abstain from using his other examples here (engineers, doctors, lawyers) as all those are not chosen freely, but we are coerced to use them by government violence.I think that he would agree that we are choosing many kinds of free-market referees even today, and that would remain entirely possible in anarchism. What would not be possible is for the government to violently suggest our choices. Also, there would be no economic waste on unpaid division of labor. This is where FDA operates, for instance, or NASA. These are specialists too, and I assume some of us do have a demand for someone watching the food quality as well as for someone to deal exclusively in space exploration. The problem is that we currently allow for these particular divisions of labor to be detached from real demand, and so we are either overpaying and over supplying their product or underpaying and under supplying it.In anarchism, or minarchism, you don't have to do your own food quality research as you would simply outsource it to a specialist, just like you don't have to tow your own vehicle today, having an option to outsource this to AAA or others in tow business. Same with NASA.The world isn't going to end because we all would have to eat bad food or build no satellites. But we are going to have exactly as much food watching as we are willing and able to pay for, and as much spice exploration as we actually, really need (meaning that as soon as that exploration brings us less than we spend, it will be immediately de-funded).So, if Claymore actually agrees that there is a difference with free-market vs. government dictated referee, than it looks like we are all in agreement here.

Shane's picture

@ ClaymoreBefore I go any further, I just want to say: GOOD FOR YOU!I wish I could speak/write Portuguese (or any other language besides English) as well as you communicate in English!ON WATER MONOPOLIES:I think we must keep one very important fact in mind when discussing this: The kind of water monopolies which you refer to would NOT even exist in their present form, in the first place, w/o the coercive power of the STATE/GOVT. Please keep in mind that the very EXISTENCE of water monopolies exists BECAUSE of govt.That said, your assertion that an "anarchical system" (this is kind of a contradiction in terms...there is no 'system' in a free society) wouldn't guarantee affordable access to water is not really a point. I could just as easily assert that govt. is quite capable of denying access to resources like water.HOW to transition from the current situation is the question. You're, obviously, a very intelligent person. I would ask YOU to contemplate the question. What is the most equitable solution that YOU could come up with? If YOU can't deal w/the problem...do you think, maybe, the SAME kind of market anarchy that produces entrepreneurs of all kinds (doctors, engineers, etc.) just might produce SOMEONE that COULD come up w/a solution? When you unleash the productive capabilities of MILLIONS of humans--unencumbered by govt.--the sky really is the limit. The SAME specialization of labor YOU mentioned would ENSURE that no one died from lack of water.

Shane's picture

@ Claymore1. QUOTING YOU:" it is not possible to firmly say without any shadow of a doubt that an Anarchistic Society would be the one free statist coercion, economic depressions, legislative injustice, and even waste. Actually that is an Utopian state and that is not possible since we are humans and humans are inequitably flawed and prone to fail."What is your point here? If its to say that human society can never be "perfect", OK, agreed. If its to say that we can't do better than the nation-state model, not so much agreement...And, an anarchistic society--by definition--precludes the possibility of "statist coercion". The "state" is simply a mental construct which labels the SAME action w/two different adjectives: i.e., "collateral damage" (the killing of innocents) is perceived as being OK since its "legal" (i.e., its the "state" doing it) while, at the same time, when non-"state" actors do the SAME thing its considered to be "illegal" (not "state"-approved). The ACT (innocents being slain) is the SAME in REALITY...but the way its PERCEIVED in the MINDS of the brainwashed does NOT match up w/REALITY. To say what you're saying would be akin to saying "There's no way a non-slave society can guarantee an absence of slavery"...

Shane's picture

@ Claymore1. YOU SAID: "Our society is very differentiated. We have doctors, engineers, entertainers, lawyers, etc... each and everyone has it's own special gift and we will never be able understand and learn everything."I wholeheartedly agree. The division of labor has been one of the greatest human innovations. An innovation, btw, that is wholly attributable to the kind of spontaneous and undirected social organization (i.e., FREE-MARKET CHAOS) that anarchists advocate for.2. QUOTE: "Every time we get sick and need to go to the doctor, we select him and delegate to him, the decisions that can lead us to recover or to the coffin... hey, humans aren't perfect!"Yes, we are each, ultimately, INDIVIDUALLY responsible for OURSELVES. In a free-market, the doctors who help more people to recover will have more success than those that put folks into coffins.3. QUOTE: "Referee's will always be there in but the difference is, if the People has enough knowledge and education, they have the ability to choose and to substitute the referee/government/lawyer/doctor, what ever you want to call it..."Define your terms: what do you mean by "referee" and "the People" (why the capitalization?)? I would ask you: Why not let "referees" (I assume you mean neutral arbiters here) arise to prominence through the SAME anarchical mechanism that produced the "doctors, engineers, entertainers, lawyers, etc." you previously mentioned?4. QUOTE: "I think it's a matter of having the right tools in order to be trully free, or in other words, to be truly educated!"Maybe FREEDOM is the "right tool"...? To be "truly free" requires an absence of coercion. To be "truly educated" requires the FREEDOM to pursue knowledge unencumbered.

mava's picture

@ClaymoreIf you allow that the monopoly can lower the prices to undercut the competition, and survive as a monopoly, then there is no way I can explain how competition would work. For instance, electricity works, because there are conductors and non-conductors of electricity. If we allow that there are only conductors, or only non-conductors, then electricity can not work. If we allow that 1+1=1 then math makes no sense. So, obviously, I am pointing back at your assumption as being an incorrect one.Yes, I should not have mentioned the depopulation, but I had. Too late now. This quick and dirty take is that to support a certain size of population requires a certain size of production. That level of production is possible only with certain size of accumulated capital employed productively. There is a lack of real capital as compared to current population. This is because we have had central banks and counterfeit interest rates for decades (soon to be a century). Without that capital, the production will fall and new rules would need to take place before it is accumulated again. During this, the current government will not be able to survive. Besides, currently, the resources available to the governments and spent on their desired level of life and to support their enforcement are directly extracted from the scam that the federal reserve is running, so, past the necessary changes, there will be no central bank, if we are only to witness the marginal depopulation. There is an another path, and that is to forcibly depopulate, so that the current government can continue to enjoy their power and standing. This is considered an acceptable sacrifice by some in the government. Henceforth, there is an ongoing research on how this need for significant depopulation could be "sold" to the masses, so that it can proceed actually reaching far more substantial depopulation goals. This is why you hear the CIA fronts, under "Green" face-masks field-testing various premises. Your likely first objection would be "all I see around me indicates an excess of capital, not lack of it, just look at the ever grand projects, iPods and Ferraris". If you have had this objection, then this is only natural. Actually, what you are looking at is the malinvestment of what little capital remains. Currently, we are consuming the capital, and typically, the owners of the capital don't even know about it.In anarchist system, the world would go back into balance, by some depopulation as those not willing to produce enough for others (government and those it subsidizes) will simply die out, second, by many starting to produce and save, and third, by switching to efficient use of capital, where those malinvesting their capital are losing it forever, and those arbitraging against such malinvestment gaining it. We could very likely still escape any depopulation if we removed the government and all the evil malinvestment, counterfeit, wars and regulation it creates. But this is not very likely to happen.This is a subject that is not easy to think about. But imagine that we all decided that we just going to have a giant party and "burn" everything we own, and that this party is going on for years. You will realize then, that there will be many people who would have many children because they are erroneously assuming that the great and easy times have arrived. The permanent high plato. The overwhelming material base. Obviously, that there will be a stop to that party, and the many children will not be able to be find material support, once it will become clear to anyone that you better grab what you can and run.Or, may-be you can believe that such a party can continue indefinitely. Then there would be no reason to believe that society can possible overestimate their means and over-procreate, and there is nothing to worry about.I'd like to note that in no way I would put myself with those that are shouting that "The mother earth cannot support us all". No, that would be bullshit, and I have no interest in bullshit. Prof. Reisman once said (I am paraphrasing here) : "Don't worry about resources, our whole earth is nothing but a giant ball of resources, and so is our solar system and the whole universe, worry about capital you going to need to obtain and use them." Those that spout such "Earth cannot support us" nonsense, as I have mentioned above are either idiots or CIA that researches and employs them.

Bill Lodderhose's picture

I've worked off and on (too long) in Hollywood, almost 20years now so please excuse my layman approach, however, it feels to me as if our system of economics are being run by Dennis Nerdy (Wayne Knight, from Seinfeld) inside Jurassic Park and he hasn't taken time for a good long conversation with Dr. Ian Malcom (Jeff Goldblum's character) as to why his calculations are doomed to fail. I'm predicting the fence on the Velociraptors is going to default very soon. Days, months perhaps a year or so, but it's appointment with the approaching Iceberg (All Aboard the Titanic, is that the band on deck warming up?) is destined. ~ Chaos theory is a field of study in mathematics, with applications in several disciplines including physics, economics, biology, and philosophy. This happens even though these systems are deterministic, meaning that their future behavior is fully determined by their initial conditions, with no random elements involved.[2] In other words, the deterministic nature of these systems does not make them predictable.

Claymore's picture

@KashyapKashyap, it seems that you have something against Science...Game Theory is like "a bag of mathematical tools" that is used to modulate systems, composed by agents that interact between themselves, that fit in a certain kind of rules. Obviously you cannot use it for everything and like I said, it lost it's place in Economy to Econometrics.Econometrics is not a science, it's a sub-field of research inside a very solid science called Mathematics and it does not attempt to model human behaviour, it attempts to find a mathematical model that approaches a certain behaviour and this is a very, very different thing!Did you know that despite knowing that the Newtons Mathematical model for a projectile movement is flawed, NASA still uses it to put satellites in orbit? Why ? Simply... because the error that it introduces in the distances, is not enough to cause any kind of worries when deploying the satellite. This happens because the mathematical model, has the sufficient approximation to reality, in order to predict the satellite position and put it in a interval of orbits that assures that the satellite doesn't fall or flies away into deep space.Of course you will never have the perfect mathematical module... that is simply impossible! But what is possible, is to obtain a module that approximates so much to reality, that you can predict a behaviour with a high percentage of certainty! This is Science, and we see it every day! Electronic devices, medical drugs, mechanics, they all work within a certain degree of error. A medical drug never has a 100% success, still, we take it. Why? Because most of the times, there isn't anything better.With Anarchy the same applies. This is just another way to see things, and we can never state that it will work 100% perfectly... because it won't actually, lol. There is always an error factor. This is nothing more that Political Science.

Bill Lodderhose's picture

I've worked off and on (too long) in Hollywood, almost 20years now so please excuse my layman approach, however, it feels to me as if our system of economics are being run by Dennis Nerdy (Wayne Knight, from Seinfeld) inside Jurassic Park and he hasn't taken time for a good long conversation with Dr. Ian Malcom (Jeff Goldblum's character) as to why his calculations are doomed to fail. I'm predicting the fence on the Velociraptors is going to default very soon. Days, months perhaps a year or so, but it's appointment with the approaching Iceberg (All Aboard the Titanic, is that the band on deck warming up?) is destined. ~ Chaos theory is a field of study in mathematics, with applications in several disciplines including physics, economics, biology, and philosophy. This happens even though these systems are deterministic, meaning that their future behavior is fully determined by their initial conditions, with no random elements involved.[2] In other words, the deterministic nature of these systems does not make them predictable.

mava's picture

@KashyapI am very curious about gravity. I would like to know what is your personal take on the source of gravitational force, if you have one and care to indicate it, of course.Newton mass, Einstein curvatures, anything else?My current suspicion would be that it is not a pulling but a pushing force.I probably should not ask this, as this thread is about referee, - but I can not help it...

Claymore's picture

@Mava, to answer your question:"A monopoly can not exist, without violence. Would you agree with such a statement? The only way to have a monopoly is through violence."What kind of violence are you talking about? In my country, there are several companies that have the monopoly of several products and I never saw violence being used to impose the monopolies...Water companies in each district that are going to be privatized, EDP (the power company) that was privatized long ago, has the power distribution monopoly, GALP another monopoly, which has the Gas, Gasoline and other kind of Petroleum bi-products. These were all companies created by State Capital that were privatized and ended up in foreign capital hands and now, profits are leaving the country because of that... they are not used to sustain the social state nor used to develop the country economy.So, do I agree with the statement? If the violence you are talking about is physical violence, then No, I do not agree.Monopolies are sustained by assuring that no competition is allowed to enter in the market. Several tactics can be used to assure that, such as "dumping", use exclusivity service contracts with transportations companies for example, to guarantee that the competition can't transport their products at lower prices, aggressive marketing campaigns, exclusive contracts on raw materials suppliers, and others I can't remember.About my line of thought, i don't know if you really understood what I was saying. A monopolist company can keep their prices up in order to maintain a high profit and when a new competitor enters the market, they could just lower their prices in order to kill the investment of the competitor. Competitor goes bankruptcy and then, the monopolist company can charge again what it wants for the product. Why? Because it can.But I still maintain my question about Cartels... This is a common practice that is very hard to prove, despite being illegal in several countries (in Portugal also). How can the free-market system, avoid a group of companies, artificially maintain high, the price of a product, creating in fact, a Cartel? This is also a monopolist system, despite having several participants.About the monetary system, I'm not going to comment a lot, just to make a question... even if the governments would agree about the theory of depopulation (which is a bit silly in my opinion, since the population in Europe is actually decreasing in numbers), how could it be done without imposing it?If in an Anarchical system there is no coercion, how could the world depopulates? Many cultures around the world would think of that as pure stupidity and refuse to do such a thing, so I'm not seeing how would the People of the world even agree on that, without being coerced actually.So many questions... :)

mava's picture

I consider myself a minarchist, actually, since I am not entirely clear on how exactly the violence will be dealt with in a fully anarchist society. I think it might be possible, but I am not very sure of it. Therefore I do stop one step short, and defend minarchism, in a strict interpretation. I am aware that my favorite economist, Rothbard, had argued agaist minarchism, and yet, I can not say with any certainty that full blown anarchism would work, even though I allow that.With this said, please, keep in mind, that when I am arguing for anarchism, it is because I believe it is possible, but I am only certain that the strict form of minarchism is definitely an option to consider. I therefore, am located theoretically somewhere between you (statist) and Jeff (anarchist).I will say that in a minarchist state, there is zero possibility of monopolies, except, obviously a monopoly on violence - by the government.I have been attacked before when I stated likewise, that because the government has a tendency to widen it's powers, it will inevitably slide of it's prescribed duties and allow corruption and then the monopolies in trade. This may be so.However, such government can no longer be called minarchist, not any more than the current regime has anything to do with capitalism. In absence of the evidence to the contrary, I currently believe that it is possible to keep a strict minarchist government within it's mandate. I may be wrong on that, just as any anarchist may be wrong believing that their chosen approach will work. Neither one or another have been tried, unlike socialism and communism, which is why we all agree that they don't work.Just thought I would clarify where I stand.

Kashyap's picture

Claymore: "Well, you can't just appley your own definition of rationality to Game Theory and expect it to work lol. It doesn't work that way... In Game Theory, rationality is defined as taking an action that retrieves a better payoff. "That isn't my own definition of rationality. That's the objective definition of rationality. To know the difference, ask yourself how words, concepts and definitions are formed. Also, how is taking an action that results in a better payoff NOT acting according to the best of one's judgement?You keep talking about games and game theory, but tell me how it is in any way relevant to reality. Games are not reality. You cannot extrapolate behaviour from games to reality. There's a lot of difference between a real and artificially created environment. All these Nash equilibrium situations you talk of can exist only in environments created by game theorists, not in reality.The truth or falsehood of an idea does not depend on the number of its adherents. Having 50 Ph.Ds in econometrics does not make it a 'science'. Econometrics attempts to 'model' human behaviour using equations. It is flawed right at the root. From your comments on monopolies and cartels on a free market, I see that you haven't delved into economics. The dumbed-down argument for why monopolies cannot exist in a free market: the problem of economic calculation. Unless there is a market for the various inter-mediate goods produced, a company cannot perform an implicit earnings calculation to determine whether it is making a profit or a loss. Without a P&L mechanism, it cannot allocate resources to the most valued ends. If it does not allocate resources properly, it will be eaten up by its competition. All the monopolies which currently exist are State granted. Water companies built by the State classify as a State granted monopoly, unless the State will not harass any company which attempts to provide the same service. By controlling access to roads and highways, it pretty much has a grip on any company which wants to enter a pipeline dependent industry. As for cartels, the only reason to be worried about them in a free market is if they have the ability to raise prices above the market value. In which case, competitors would enter and force prices down. A final point. A question is not an argument. Present arguments against anarcho-capitalism showing where you disagree and why. For example, a question as to how gravity works does not invalidate the theory of gravity.

Claymore's picture

@mava I forgot to answer the first question...There was no entity that assure the monopoly. The water companies we built by the government back during the Fascist State in order for the People to have access to clean water. If that didn't happen, probably lot's of villages trough out the country, wouldn't have access to clean water for consumption right at their doorstep.This remind me of another peculiar question.If in an Anarchist State, there are no regulators/referee's, how is it possible to avoid the creation of Cartels by strong companies?

mava's picture

@Claymore,Well, if you look at it, you should be able to detect by now, the trouble with your argument.You stated, that first of all, the monopolies you speak of, were in fact, created by the government. This was exactly what I was alluding to in my question.Secondly, you stated that if the government did not create water companies, then no one would have. Are you certain on this second thought?A monopoly can not exist, without violence. Would you agree with such a statement? The only way to have a monopoly is through violence.For, without violence I will come to your region and offer water cheaper. Why? Because I will arbitrage away all the wealth of the existing water company that foolishly believes it can afford to keep the prices high. The more other companies they are colluding with, the merrier it is for me. If all the companies around me, that had an ability to deliver water to the region, collude to charge more than I, then they have just assured their own demise.You worry, that I have no funds to buid anything capable to compete with the existing suppliers. You should not. For as long as there is no central bank, then we can be rest assured that the free market will establish the interest rates high enough, to insure that needed capital is always ready for the deployment.It does that by knowing all the myriads of complicated details both about the project and about the rest of economy and about the real demand for the project's deliverables. This is something no science will ever able to calculate, but the free market does it naturally, because it simply "takes survey" of every participant's real intentions and demands, by asking them to put their money exactly where their mouth is.So, don't worry about the capital, worry about the central bank. Let me digress, this is a major cover-up to say that the current crisis was a result of housing bubble crash or greed or deregulation. Very few (only as far as I know, well Jeff have as well as Antal Fekete), are consistently pointing at the real cause - depletion of real capital relative to real demand due to decades of free market being forcibly blinded by the governments through counterfeit interest rates enforced by it's central banks. This is extremely politically incorrect truth, because the solution will require depopulation (therefore all the talk about it without any explanations), and no government is brave enough to acknowledge it, they all cover it up. Back to our ships. Now, you kind of need to decide which line you are going to support. Either your monopolist companies keep a price too high, or are they keeping the price too low (to blow me out of business), because, obviously, they can not be doing both.If, however, there is violence to deal with, then I think you will have to name the party doing the violence. It starts with "G".

Claymore's picture

@MavaTo answer your question, well, unless you had like millions of Euros available to your disposal, in order to build your own water treatment stations, underground water pipeline and then, the marketing, in order to capture a decent number of clients and be profitable... you wouldn't be able even to start operating. Also, you have to count with the aggression from the other companies, that would probably start to lower their prices to avoid loosing clients, and ending in killing your business. That's why the regulators appeared in the market, in order to avoid exploration by monopolists companies, to which is economically impossible to compete.

Claymore's picture

@Pacop, you stated that:"Rationality is defined as the ability to act according to the best of one's judgement."Well, you can't just appley your own definition of rationality to Game Theory and expect it to work lol. It doesn't work that way... In Game Theory, rationality is defined as taking an action that retrieves a better payoff. Nash equilibrium states that an Agent is in a Nash Equilibrium when he has no other possible action to choose, that can offer him a better Payoff. Many Games don't have a Pure Nash Equilibrium, that's why there is something called, a Mixed Nash Equilibrium.Stating that Econometrics is a Joke is a very serious statement... Do you have any research to prove it? I say this because in Spain, if I can recall, at the University of Val

mava's picture

Claymore,I have a question for you: What entity ensured that each water company is a monopoly in each region?Let us say that I am moving to your region tomorrow, and opening up a brand-new office of "Get Your Water Here Cheaper". What is going to happen?Kashyap,Isn't it amazing how far the pseudoscience is willing to go to find their "philosopher's stone", to find a scientific proof that the government is necessary for survival? They all ignore one thing that Mises said, that each of us assigns his own subjective value to every good out there, the value that is known only to him, and is different than the value others may assign. Yet, they continue with their stupid attempts to figure out a formula that is more complicated than the last one, that will predict our behavior as if we were all the same.I understand that the government pays for this travesty. I understand the sell-out scientists who know this is impossible, but still want to sell their next scam theory to the government to get paid. What I don't understand is people who take this game of lie for something real.How can one believe that there possibly is a theory that tells you this or that about people, when not you, not the theory "father", not even anyone in the history of men ever, yet, knew ANYTHING at all about other humans except what he may have known about himself?Shane,No, the court officials are not serving you. They are serving (supposed to be serving) justice. You are ordered around at gunpoint, because you do not want (or expected not to want) the justice to be served.The same exactly thing would happen to you in a minarchist court, and even in anarchist private court. This forecast of mine is based on the conclusion that for you to be presumed to want justice in the same understanding as the court has, you must not be an individual with his own values, but this very court. As such is impossible, I can safely say that no matter the system, the court that is empowered to cause negative outcome to you, will always find it necessary to expect that you will disagree.

Claymore's picture

@PacoupYou didn't understand me... I stated:"Here in Portugal, there are several water companies in several regions of the country and all have one thing in common... they all represent monopolies!"Let me reformulate. In each region of the country, actually in each district, there is only ONE water company!Each region can only receive water from ONE company! This is clearly a monopoly since i am unable to buy water from any other company because well... there is no other company...Now, take your conclusions from there...Again... I'm not American, I don't know how the American government really works and to what accounts does the American People has access to. In Portugal, all state expenses are public and can be accessed from the Internet. That why we know how incompetent they were in the last 30 years...

Pacoup's picture

Claymore, I think your definition of monopoly needs to be revised. You can't have a monopoly if there are multiple companies competing.And it's the laws of market. One day, one guy will want to get richer, and will start selling at a lower price to undo the hold of the competitor, and the same will happen with the other competitor, and so on and so on. Water is eventually gonna be the cheapest it can be. Conversely, a Government has no competition, and is free to charge you whatever tax it wants for the water. Not happy? The taxes can simply be "shifted". Oh, medical expenses have increased and what not. And then Government reports are top secret, for your protection of course, so you have no way to audit what they're really robbing you for.Still not convinced? I'm sure millions of thirsty, angry humans have something to say about the company's business.

Kashyap's picture

Game Theory.. Rationality.. Econometrics. Claymore: "Game Theory requires that the agents act Rationally and humans, are very far from that. Also, markets don't have a rational behaviour and that's why Game Theory has lost its place in the economic system, to Econometrics "First off, understand what rationality is. Rationality is defined as the ability to act according to the best of one's judgement. To act, you need to have some idea of a causal link between your action and the desired outcome. This is derived from the fact that action is purposeful behaviour (action has to have a purpose, which is to achieve the desired outcome). Now, it is axiomatically true that all men act. Which means, they see some causal link between their action and desired outcome. They judge that 'this' action is necessary in order to achieve 'that' outcome. May be true, may not be true. But they do act according to the best of their judgement, i.e. they are rational. Game theorists have no clue as to how men act in the real world. They create zero-sum game type of circumstances in which "self-interest leads to a lose-lose situation", and use this "Nash equilibrium" to 'prove' market failure. Seriously, how can anyone fall for such nonsense. There is no parallel whatsoever between game theory and the real world. Humans don't live in a vaccum satisfying the conditions required for game theory to work. As for Econometrics, its a joke. It's an off-shoot of a flawed epistemology. Econometrics attempts to establish causal links between phenomena caused by human action using empirical data. That's the methodology of physics, applied to rational beings with a volitional consciousness. You can get a better idea on methodological issues here: http://mises.org/resources/94The reasons given for why anarchy wouldn't "work" are apparently the same as the reasons given for why freedom wouldn't "work". http://mises.org/daily/5076

Jeff Berwick's picture

Shane: all of your posts are elegant and incredibly insightful. You don't put your email on your posts so we can't contact you but we are interested in speaking with you... perhaps there could be some possibilities to work with us to contribute some editorial or things like that... please email me at TDV@dollarvigilante.com so we can speak more.

Claymore's picture

Gosh, so many answers! Did I really provoked all of these comments? :)Some of you stated that since Jeff owns Dollar Vigilante, he is allowed to apply the rules that fits his needs and if someone wishes to interact in this forum, that someone must comply to his regulations. Well, in this case, since this is a blog, I can concur. But... what if it was something else... something that it could decide whether a person would live or die.Let me give you one real example (again from Portugal... I love my country, despite the recession...)Here in Portugal, there are several water companies in several regions of the country and all have one thing in common... they all represent monopolies! One of the things that the FMI agreement stated was that, companies owned by the state should be privatized and this raises a problem. Since these companies are clearly monopolies and since they supply water, that all Portuguese Citizens need to drink in order to live, who would regulate and avoid that these new privatized companies, would end up charging forbidden prices for the water supply, if there was an Anarchical system, here in Portugal?Since there is no way for a new company to born in a month or a year (or ever), because of the costs to build a new pipeline infrastructure in order to compete in a free-market style, these new privatized companies have the possibility of charging very high prices in order to obtain the maximum possible profit... I'm really interested in knowing how that problem can be solved.In my opinion the existence of a referee could be seen as someone belonging to a group, that was allowed by the majority of the group, to take higher level decisions. There is nothing wrong with that, as long as the group maintain an eye on the referee and understands what the referee is doing and how it affects the group (knowledge about how things work). If someone doesn't agree in how the group works or doesn't wan't to comply with the rules, that someone is free to leave. Simple! :)I think that there is the misconception that a Whatchman has "super-powers", well... i don't see that way. I see the referee as someone that was simply elected by the group (like someone that is better fitted for the job) to take decisions that can actually affects the group, but i don't see the difference from this job when compared to other jobs such as, a doctor that helps ppl to feel better or an civil engineer that builds houses for people to live.Ed Bugos actually got my point when he stated:"The debate is not over whether to have law or not; it is over whether it is better provided by a coercive monopoly or competitive agencies. I know some readers will think that would be worse because then the rich could just buy the police, etc. It's not that simple. But that's another idea altogether. The point is that in anarchist society you could still have a moderator. It just wouldn't be a bureaucrat in Washington."@Ed Bugos, when you stated this:"The criticism is basically that "game theory" is an inappropriate framework for understanding society, which is a complex organism, founded on complex relationships between people guided by the principle of the division of labor."Let me add something that I learned when I researched in the field of Game Theory.Game Theory requires that the agents act Rationally and humans, are very far from that. Also, markets don't have a rational behaviour and that's why Game Theory has lost its place in the economic system, to Econometrics (http://en.wikipedia.org/wiki/Econometrics).@PhilosophistaWhen you stated:"Did it ever occur to you the population is stupid Because of the system?"Well, I agree but changing the system to Anarchy wouldn't change that, it would actually kill the system altogether... See it as, feeding a child that passed trough a long period of starvation. You need to feed the child properly and very slowly in order for the body to slowly absorbs the nutrients and recover.The apply's to the current society, it needs time to change and it needs a transition period and probably a transition system that has referees, while society get's educated.The biggest problem with Portugal after the revolution, was that people weren't accustomed to be free... They didn't knew what fredom was... and after the revolution, some problems erupted :S @Shane, you stated that i said:"Anarchy as an "unproven" and "Utopian" model."I never said that. What I said was:" it is not possible to firmly say without any shadow of a doubt that an Anarchistic Society would be the one free statist coercion, economic depressions, legislative injustice, and even waste. Actually that is an Utopian state and that is not possible since we are humans and humans are inequitably flawed and prone to fail."There are no perfect system and problems will always erupt, that's how nature works. :)Our society is very differentiated. We have doctors, engineers, entertainers, lawyers, etc... each and everyone has it's own special gift and we will never be able understand and learn everything. Every time we get sick and need to go to the doctor, we select him and delegate to him, the decisions that can lead us to recover or to the coffin... hey, humans aren't perfect! Referee's will always be there in but the difference is, if the People has enough knowledge and education, they have the ability to choose and to substitute the referee/government/lawyer/doctor, what ever you want to call it...I think it's a matter of having the right tools in order to be trully free, or in other words, to be truly educated!Sorry again for the big post... Cya you all!

Shane's picture

@ PhilosophistaTwo basic maxims of free-market philosophy are:1. You will get more of that which you subsidize.2. You will get less of that which you tax.In the modern socialist/fascist democratic state, non-producers are subsidized while producers are taxes in order to provide this subsidy.Applying the above 2 maxims would give you a society where non-producers are incentivized to multiply while producers are incentivized to decrease.What makes this more grotesque is that many of the producers have been brainwashed into believing that their being forced to subsidize non-producers is perfectly moral and normal.

Shane's picture

I like Max Keiser--esp. when I first started listening to him--but as time has passed, his statist views and 'solutions' have really begun to annoy me. I would LOVE to see him in a debate w/an anarchist like Jeff Berwick.The whole idea of govt-as-ref has been tried innumerable times and has ALWAYS FAILED.Those who adhere to this premise believe political power (i.e., the legalized power to coerce, steal, and murder) can be given to mere humans who will only wield it wisely. They seem to believe there is a race of humans, somewhere out there, who are immune from corruption, pettiness, mental-illness, favoritism, etc.Take govt. courts, where justice/fairness are allegedly upheld, for example: You have a govt.-appointed/paid judge (who has near-total immunity for his courtroom actions) presiding as a 'neutral' party/'ref...a govt.-appointed/paid prosecuting lawyer...a govt.-licensed defense lawyer...govt. appointed/paid cops & investigators...all sworn to uphold govt.-passed 'laws'...a govt.-educated jury given strict instructions on how they should enforce the 'law'...and then there is the defendant/citizen whom ALL of the above govt. agents are allegedly SERVING. If these people are serving ME...why are they ordering ME around at gunpoint and making me do things against my will? ALL of them are paid w/money confiscated (be it taxes, fines, lawyer fees, court fees, etc.) from citizens/defendants OUTSIDE their little govt. gang...in short, their very LIVELIHOODS depend on continuing and expanding the system of legalized extortion. But statists imagine these people are NEUTRAL REFS?! It is a totally delusional worldview.

Shane's picture

@ steve1. QUOTING YOU:"Actually, many things in life are a zero sum game. You eat contunuously or you die. You get medical care or you die. You have shelter or you die."You're not applying the term "zero sum game" properly. You're talking about biological necessities/functions which are WHOLLY unrelated to the topic at hand. A ZSG necessitates there be a winner and a loser--there is no middle ground. Example: I point a gun at you and demand your money--in this case I win and you lose. I achieve a benefit at your expense while you achieve none. All of the things you listed...my eating doesn't necessitate that you (or anyone else) starve...same for medical care, shelter, etc.2. QUOTING YOU: "Letting the most powerful control all of these without any oversight...as bad as fascism."Nation-State Govts.--HAND DOWN--are "the most powerful" corporations (run by mere mortals like you and me) which have EVER existed. They've accumulated the power to, basically, wipe out all of humanity. If you're worried about "the most powerful" dominating us all...then why are you DEFENDING the very thing you claim to oppose?! This is a very puzzling and contradictory position to take...this is what statism does to your brain! 3. QUOTING YOU: "Oddly enuf, Jeff the anarchist has a statement below here that that these posts don't appear until moderated, LOL."This statement of yours has been addressed (i.e., a privately-run/owned website is NOT a govt.), but I must comment on the sheer cluelessness of this statement. How in THE HELL could you compare these two totally different methods of human interaction and, incredibly, think you were making an actual POINT? This is your mind on STATISM...any questions?

Shane's picture

@ Claymore1. Society isn't ready for anarchy yet.Most anarchists I know readily acknowledge this and see the move towards a truly free society as a gradual and evolutionary one, rather than a sudden and revolutionary change. This in no way negates or disproves anarchists' assertions that the existence of a state is A) Immoral and B) Counter-productive to the best interests of the VAST majority of humanity.2. Anarchy as an "unproven" and "Utopian" model.First off...anarchists I know of do NOT say total freedom would result in "Utopia". Only that it would be DRASTICALLY preferable to what exists now. Big difference. On the contrary, I would say STATISTS are the actual "Utopians"...they persist in a religious-like belief that granting a TINY # of humans near god-like power over the rest can result in a society where virtually every problem (hunger, homelessness, education, environment, etc.) is eliminated. Believing that a small minority of people are capable and entitled to such power is, quite frankly, insane.Secondly...since the state (as powerful as it is) is incapable of REALLY controlling the actions of 100's of MILLIONS of individuals...well, this alone indicates that the VAST majority of folks are well-behaved and civil to one another, as well as capable of navigating life on their own. If people were as bad as many statists make them out to be...there is NO WAY a small minority could keep them in line. In short, in their PRIVATE lives and interactions, people ALREADY demonstrate the capacity to function w/o the coercion of the state forcing their actions. 3. People are "too dumb" and/or "incapable" of handling freedom.The same was said, less than 200 years ago, about slaves descended from Africa. So, this isn't really an argument AGAINST anarchy so much as a rationalization of the current system.

Philosophista's picture

Claymore, you have mentioned an anarchist system would not be possible today because the population is too stupid. Did it ever occur to you the population is stupid Because of the system?Modern civilizations today prize equality over fairness. In spite of evolutionary evidence, our societies have created systems to support useless members of society. These members of society, given lower average intelligence, are thus allowed to reproduce, and often do in greater numbers, because they're not very intelligent and will screw around with anyone.The result is idiocracy. There are more and more stupid people who do nothing to make society better and would not be able to work in an Anarchist system.To make matters worse, many intelligent members of society are brainwashed to believe the system is the right thing and end up clinging to its security and the little wealth it brings them, which leads them to believe offspring could upset the sustainability of their luxury life, and they end up having only one child, or none at all, further lowering the amount of intelligent people in society.Heck, even animals go to great lengths to prove their they are superior in order to be selected for reproduction. This, of course, goes hand with hand with nature and survival. Only keep what can make the species better.Did you ever hear of animals with a modicum of intelligence reproducing with handicapped members of their species? Or of homosexual animals producing offspring? No. Because it's against survival logic.Why would you want to propagate lower grade genes. That's like promoting the death of your species.This is highly controversial of course, because humans get attached, but our society has been brainwashed in keeping alive everyone, because that's supposedly fair. But it's not fair at all. A large percentage of the population does not deserve to have the lives they have. If they can't survive by themselves, we should the rest of the society support them.I am not calling for genocide. I'm simply calling for the bettering of my own species, i.e. not promoting the multiplication of bad genes. My take is humans could be much better. I'm certainly against the dumbing down of the population for the benefit of a few, which is exactly what the International Bankers have succeeded at doing.If we had not promoted the reproducing of humans with bad genes, we would not have to be attached to a handicapped member of our family, because there would be far fewer occurrences of them.I myself am flawed. I'm homosexual, not by choice, but by brain construction. The part of my brain which controls the natural instinct of being attracted to the opposite sex is broken. When I was fabricated in my mother's womb, some bad genes made a mistake, and that part of my brain is female, despite the rest being male. The stupidest thing I could do in all my life is reproducing with my own genes. I'm intelligent, so it's unfortunate, but I wouldn't want to promote what is essentially a flaw in my species.Now, for many, they think it means I don't accept homosexuality. No, of course not. If societal norms had not pushed down the whole "being normal" thing, we wouldn't have that problem in the first place because homosexuals would not have hidden and lead normal lives, having kids like everyone, which ended up making 11% to 18% of our gene base wrong in terms of sexual orientation.

Ed Bugos's picture

Two comments.First,>> "Oddly enuf, Jeff the anarchist has a statement below here that that these posts don't appear until moderated,"Folks, this way misses the point. Jeff is not making an argument for lawlessness. Just that it is ludicrous to think that the state can be a neutral arbiter and better check than free market competition.The truth is that competition puts economic power in the hands of the consumer. The referee, insofar as it is used to protect crony capitalists and labor monopolies, puts economic power in the hands of the producers -to be split between the left and the right -the left thinks labor is the producer; the right thinks the owner of capital is the producer. This is the status quo. To reject the state, however, is not a vote for lawlessness. Perhaps a better term, which many Austrians tend to prefer, is a "private law society". In this society you would have law. The police and judiciary would simply be private.The debate is not over whether to have law or not; it is over whether it is better provided by a coercive monopoly or competitive agencies. I know some readers will think that would be worse because then the rich could just buy the police, etc. It's not that simple. But that's another idea altogether. The point is that in anarchist society you could still have a moderator. It just wouldn't be a bureaucrat in Washington.Some anarchist writers have used the cooperative as a model for society as they would see it. We all know there are rules in a co-op. This would not change under anarchy. What would be different is that there would be true consent (not like Max thinks). You would have the right to secede from any organization or community whose rules you didn't like. You can't really do that in a society whose rules are all made by one big central planning bureaucracy. Jeff is just saying that, like the structure of production, society itself can sort out norms and create spontaneous order. There would still be law.The difference between private and public law can be a matter of ethics. Rothbard wrote a lot about this subject. I'm not myself that adept at understanding law. But he wrote that there are laws that reflect norms in society, which are meant to ensure harmony...the protections of property, enforcement of social contract, etc....and there is legislation created by bureaucrats that amount to privileges.Second point,>> "Actually, many things in life are a zero sum game. You eat continuously or you die. You get medical care or you die. You have shelter or you die. Letting the most powerful control all of these without any oversight...as bad as fascism."Steve: this isn't quite what Jeff meant. Of course there are many things in life that are zero sum. And a free market system won't change that.There are also many things that are positive sum (exchange). There are many things that are negative sum (government). Your examples are pointless. Look, "life is exchanges." Within that sphere, which can be properly called free market capitalism, Jeff is contrasting voluntary exchange, which is mutually beneficial by definition, with exchanges where the referee tilts the playing field. The criticism is basically that "game theory" is an inappropriate framework for understanding society, which is a complex organism, founded on complex relationships between people guided by the principle of the division of labor.Ed Bugos

Jeff Berwick's picture

Very well said, thanks mava!

YAKEEN's picture

the feeling of injustice of the moment comes from the fact there ARE referees; the governments and the notation agencies (moody etc...) and that they are corrupt,( that is even uglier than a football referee receiving advantages to let one side win, because the future of the planet is not a game. I am talking about the planet because obscene greed (not wealth seeking) goes hand in hand with all forms of destructions)The second difference is that there is no public watching the capitalist " competition", so we can not judge if there are fair or not, and can not really understand the decisions made by the referrees unless one is very knowledgeable and not gullible.So, there might be a necesity of a referee, but a non corrupt one, specialist in this "sport", not just any ofiicial, and also more transparency. That could mean more education in the domain of capitalism (obviously the only way to run humanity so far, if ethical and not glamorized like the US have made it, nor demonized like others did,) and perhaps some form of elected (again, no glamour or big bucks ) of a comittee made of all horizons of people, formed of course, known for their wisdom, sense of ethics etc...) sounds utopic, this a kinf of "tribal counsel" still,otherwise, I do not see any good coming from a totally free market because moneymaking does not favour altruism and thisone is fundamental for evolution. Just imagine a game of any sport without refree AND with no public, where it is ALL about winning (the cool, playful, detached BIG businessman, I believe, exist only in hollywood movies, eventhough some do exist, I hope))

Bill Lodderhose's picture

I agree it's healthy to still have the ability to openly discuss these issues, something many of us fear is coming to an end. Also I may have been a little tough on you last night, I'd just returned home after watching my team win the first game of the World Series. I used to play baseball and it was a very exciting game, thank you Claymore for sharing your insights and we're so lucky they haven't enacted the internet "kill switch" yet, let's hope they never do. Peace.

Claymore's picture

"Oddly enuf, Jeff the anarchist has a statement below here that that these posts don't appear until moderated, LOL."Good point Steve!Jeff here, is the referee :)

Jeff Berwick's picture

Claymore and Steve, I have no problem with people voluntarily entering into a rule based agreement. The day that the TDV commentary section takes half your income at the point of a gun AND then forces you to use the TDV comments section as your sole outlet for political commentary THEN you can say that the TDV comments are similar to how government acts.If I were to use the same rhetoric as the government and its brainwashed tax slaves then I would counter your argument by saying you are lucky to live in a world where I allow your comments to exist. :)

mava's picture

Steve's comment is actually very characteristic of what I find people think Anarchism is (or is it what the government told them it is?). Steve obviously thinks that Anarchism is a system where we all agree to have no rules or laws. This could not be further from the truth.Unlike the state, Anarchism is full of rules, but all the rules are private, and the benefits or losses (yep, losses, something the state always socializes) that are due to the implementation of those rules affect only the owner of the that private property who instituted the rules.This board, is a private resource, no one is bound to use it, and as is proper for any private resource, it is being fully managed in full accordance with the rules and regulations that the owner believes would benefit his goals. If the owner is wrong, then the rules he imposed will generate a loss for him. No one else is affected, you can always post on Obama's Twitter Page.Yes, Jeff is not a referee on his private property, but an owner, as you should be as well, and I support such rights of your's to the point that you, for instance refuse doing business with me because of my color, and beyond. He is not judging your behavior, he simply chooses to conduct his business with you or not.The main difference here is that a referee is NOT choosing the path of his own business, instead, he INTERVENES into the business of two or more other parties, which by the definition, is NONE OF HIS BUSINESS.

steve's picture

Actually, many things in life are a zero sum game. You eat contunuously or you die. You get medical care or you die. You have shelter or you die. Letting the most powerful control all of these without any oversight...as bad as fascism.Oddly enuf, Jeff the anarchist has a statement below here that that these posts don't appear until moderated, LOL.

Claymore's picture

Wow! I'm quite happy with all the comments! I never thought it would bring so many counter-answers!Ok, first i will start to give you all some information about my life in order for you to understand a bit more, why did I wrote what I wrote. To start, I'm not American n'or Canadian, I'm Portuguese :)Portugal is a Social State (be aware that Socialism is very different from Communism.), the result of a revolution that took place at the 25 of April of 1974 (the Cradle Revolution) and took down a Right Wing Fascist Dictatorial Government, so a Big Brother system is something my country is familiar with :)In the times previously to the Cradle Revolution, it was very hard to access knowledge and only those with monetary possessions (money inherited, parents with solid financial companies and others sources of high income) would be able to study at higher levels of education (medical doctor, lawyer, electrical engineering and other degrees) with the exception of merit scholarships but these were very very rare. This was a way of controlling the People, to deny the access to Knowledge and that is why Portugal, nowadays has a big problem with the elder society that is getting unemployed... because they don't have the technical knowledge to access new jobs.Due to right wing decisions in the beginning of the 90's, our Agriculture, Industry and Fishing's, have been constantly and gradually put to an end. Subsidies coming (or imposed if you ask me) by the European Union, were used to "pay to not produce". Strategic state companies such as Electric company (EDP) or Telecommunications company (PT) were privatized and the revenues coming from those companies that would allow to maintain the social state and would allow the investment in the economy, were no longer available for that...Why did this all happen? Simply... the people did not have the knowledge to understand what was happening... Remember when I said, access to knowledge was denied in order to maintain control over the population? This was one of the results... a society without knowledge will never have the ability to self-organise.Maybe i took a "too much of a Science Guy" approach, I confess that and for that, I'm sorry. Unfortunately, we can never be fully impartial. Our life will always influence our opinions. " Oh, by the way they'll just rest up for the next game, so it never ends for their team. They understand the game, that's why they're playing it so well, that's why almost no one on the planet is taught Austrian economics, it's not by accident. That's why almost none of the public can answer even in the most basic terms what is or why we need a FEDERAL RESERVE to handle and control our money."You got my point Bill Lodderhose, control the access to knowledge and you will control the people! :)"Who Watches the Watchmen?" you ask? well, the ones that are being watched! :) Give to the people access to knowledge and the Watchmen will fear the ones that they Watch :)Kashyap, you commented about Philosophy knowledge which is not verifiable knowledge. Just because a group of people says something is inequitably true, doesn't make it True... In fact, we have the opposite in this world, it's called Mass Stupidity! :)I'm glad my comments spawned so many others! :) It's good to discuss these themes with people that have different approaches a problem! It gives me the opportunity to improve myself! Thank you all for that :)

Bill Lodderhose's picture

Claymore here's one more comment after reviewing your response. Your quote: "it is not possible to firmly say without any shadow of a doubt that an Anarchistic Society would be the one free statist coercion, economic depressions, legislative injustice, and even waste. ACtually that is an Utopian state and that is not possible since we are humans and humans are inequitably flawed and prone to fail."Perhaps you didn't mean it to sound this way, however that statement smacks of wanting a "referee" a "parent" a "BIG BROTHER" to watch over us at all times because we're "inequitably flawed and prone to fail." Well what's wrong with trying and failing, science used to have the courage to do that. I'm an Art Director and sometimes artists try and fail and then we try again, that's how we grow. Let's face it, these so called experts have been trying and failing and oh, wait they're not failing, they're making sure we always bail-out their moral hazard with our savings...mmmm...think about it, who Watches the Watchmen?

Kashyap's picture

"Well, that is not possible to prove... Why? You need to test it, take note of the results and test it again with the same initial startup base, but since this is not possible (to reset the entire system to the initial state), it is not possible to firmly say without any shadow of a doubt that..."Replying to just this part. This is the methodology of empiricism. If you employ deductive reasoning starting from axiomatic premises, you do not need to "test" the conclusions. The conclusions are universally true, since the premises (axioms) are universally true. And this is the methodology used by political philosophy to make the case for anarchism. Hence, there is no need to empirically prove it. It is always true.Also, saying a society is not ready for such a system is a judgement based on your observations in a particular field. On what basis would you extend one observation to all humanity? Simply extrapolating human behaviour in one case to all of human behaviour is scientifically invalid, even in empiricism.

Bill Lodderhose's picture

Claymore I'll keep my response short and sweet. First I feel the subject of scientific research was well covered on this site about two weeks ago, briefly and I agree with these findings, much of your field has become a society of dumbness (or for lack of a better word: sellouts). Innovation and the pioneer spirit which once lead the sciences has been replaced with Government grants and hush money to support or prop up the establishments goals, which are becoming quite transparent these days. Next let's talk about these referees, I fear it is you who may not be looking at these events with an open mind. Perhaps, you're not to blame, you've probably grown accustomed to eating steak and are afraid to face the Matrix that you have grown up in. Here in the cheap seats, (let's be clear, unless someone's enjoying the rare air that the FED or Rothchild's breath), then even some of the millionaires and billionaires are sitting in the cheap seats - if you catch my drift Claymore. Let's stay with the sports theme for another minute. Make no mistake the game, the big boys are playing is winner take all. While it's taken the better part of this century for the latest round of their game to play out, starting perhaps with their little party in 1913 on Jekyll Island for instance and we'll say half time was when Nixon scored a touch-down for the Rothchild's team by taking us off the Gold Standard, then what we're seeing are the last few plays of a very nasty team. A team who by the way has not only enjoyed the interaction with their referees calling all the shots but by the looks of it OWN the referees. George Carlin and Bill Hicks said it best, they distract us (the public) constantly, they want us to fight each other while they run off with our money. Claymore this is World Cup Rugby, it's getting dirty on the field and I think I hear your mother calling you home. Now for a quick review of history. Many men such as Thomas Jefferson, Andrew Jackson and others fought to protect our country from Central Banks, they wanted to preserve smaller Government. So seriously, you have to stand back for a minute and realize you're not in a lab, there are people's lives at stake, there are people's life savings at stake. So my question to you sir is: Do you really think you know more than Thomas Jefferson? Do you really think a keynesian take, which are usually the ones who defend and welcome more and more referees to run interference in what should be an open market is the solution? Do you understand who will go home with the trophy (hint: Rothchilds and others) when this game is over. Oh, by the way they'll just rest up for the next game, so it never ends for their team. They understand the game, that's why they're playing it so well, that's why almost no one on the planet is taught Austrian economics, it's not by accident. That's why almost none of the public can answer even in the most basic terms what is or why we need a FEDERAL RESERVE to handle and control our money.

mava's picture

Humans, unlike mathematical models, do not hold scarce resources forever. This is the point that all too many socialists do not understand at all.Factors that tend to reduce the share grabbed to zero or below:- Death- Children- Needs, which can be satisfied in exchange for resourcesMost socialist believe that if you allow someone to buy a big farm and to keep a billion dollars, then he will only get richer and his farm bigger, or at least, that those will never be reduced. So wrong.Whatever skills to provide goods and services that he had to earn this living, will not be seen in his children. They will waste (pay in exchange for goods and services) way more and at faster rate than their father could ever accumulate.I believe socialists worry about that, because they never themselves are true producers. They think they produce something needed and that they do it efficiently, but somehow there is no demand by a free market for their efforts, it is always from a public purse and through coercion. To them, obviously, if they were allowed to keep this river of honey (flowing from a concentration camp called government), they would grow way too rich. And they would. This is because they experience no forces of friction in their artificial market.Thus they actually have no idea, how hard it is, not only to accumulate, but also, and often even harder to maintain. I would say that if this was true, then we would see some big fish growing to the point that it would be able to swallow mountains. For the same reason that we do not see it in fish, we should not worry about it with people or corporations.Besides, the world does not any single example, of anyone at all, getting out of hand, on his own honest work. And yet, there are many examples of people and organizations getting way over abusive and out of hand, and in every single case, like a clockwork, we find that it could not happen without government.

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