[I]NTERESTING QUESTION: How do family structures vary? The family structure determines: the amount of inbreeding the inheritance system the private property rights that originate with the inheritance system the degree of trust extended to non-family members, with inbreeding producing lower overall trust, and outbreeding higher trust. the degree degree of authority necessary to maintain order (prevent violence in retaliation for unethical and immoral actions.) the level of corruption demonstrated by members of the government, since they are merely members of society in a position to abuse authority. the mobility of labor, since the larger the family structure the harder it is to move it to capital. the economic velocity of the polity (wealth). Conversely increase in family size determines: the degree of alienation and loneliness, since family members treat you almost always better than others will. the stress of raising children, since sharing child rearing across generations is so much easier. The redistribution family members provide each other with. the insurance from the vagaries of the economy and life the demand for the state to provide all of the above in the absence of the family that the state has destroyed in pursuit of economic velocity. LIST OF FAMILY STRUCTURES SMALL HOMOGENEOUS HIGH TRUST PRIVILEGED SOCIETIES CAN TOLERATE HIGHLY REDISTRIBUTIVE GOVERNMENTS STATE FINANCED SINGLE PARENT FAMILY – Medium term and short term pairings with or without a marriage ceremony that produces offspring, whereupon the parents cease cohabitation, and state redistribution finances directly or indirectly the support of the mother’s household. HIGH TRUST SOCIETIES WITH HIGHER ECONOMIC VELOCITY, CAN TOLERATE LIBERTARIAN GOVERNMENTS ABSOLUTE NUCLEAR FAMILY – The “absolute nuclear” family is liberal and non-egalitarian (that is, indifferent to equality). Children are completely free upon adulthood, founding independent families. Inheritance is freely distributed by will. NUCLEAR FAMILY, EGALITARIAN NUCLEAR – The “egalitarian nuclear” family is liberal and egalitarian. Children are completely free upon adulthood, founding independent families. Inheritance is equally distributed, implying at least a vestigial necessary link between parents and children throughout their lives. MEDIUM TRUST MARGINAL SOCIETIES WITH MEDIUM ECONOMIC VELOCITY – REQUIRE SOCIAL DEMOCRATIC GOVERNMENTS EXTENDED FAMILY, STEM FAMILY, AUTHORITARIAN FAMILY – The “stem” family is authoritarian and inegalitarian. Several generations may live under one roof, notably the first-born, who will inherit the entirety of property and family headship (and thus perpetuate the family line). Other children typically leave the home to get married or become priests/soldiers. A family that extends beyond the immediate family, consisting of grandparents, aunts, uncles, and cousins all living nearby or in the same household. The stem family is sometimes associated with inegalitarian inheritance practices, as in Japan and Korea, but the term has also been used in some contexts to describe a family type where parents live with a married child and his or her spouse and children, but the transfer of land and moveable property is more or less egalitarian. In these cases, the child who cares for the parents usually receives the house in addition to his or her own share of land and moveable property. LOW TRUST, POOR SOCIETIES WITH LOW ECONOMIC VELOCITY – REQUIRE AUTHORITARIAN GOVERNMENTS TRADITIONAL FAMILY, COMMUNITARIAN FAMILY – The “communitarian” family is authoritarian and equal. Several generations live under the same roof until the eldest die and the inheritance is divided equally. HETAERISTIC MONOGAMY – Monogamy with frequent extra marriage sexual relations. PAIRING FAMILY, SERIAL MARRIAGE – Medium term pairing of individuals either in patrilineal or matrilineal property systems. CONSANGUINE FAMILY – three generations of interrelated individuals live together (pre-polynesian) without any prohibition on relations. Property is irrelevant in this system.
Theme: Property
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How Do Family Structures Vary?
[I]NTERESTING QUESTION: How do family structures vary? The family structure determines: the amount of inbreeding the inheritance system the private property rights that originate with the inheritance system the degree of trust extended to non-family members, with inbreeding producing lower overall trust, and outbreeding higher trust. the degree degree of authority necessary to maintain order (prevent violence in retaliation for unethical and immoral actions.) the level of corruption demonstrated by members of the government, since they are merely members of society in a position to abuse authority. the mobility of labor, since the larger the family structure the harder it is to move it to capital. the economic velocity of the polity (wealth). Conversely increase in family size determines: the degree of alienation and loneliness, since family members treat you almost always better than others will. the stress of raising children, since sharing child rearing across generations is so much easier. The redistribution family members provide each other with. the insurance from the vagaries of the economy and life the demand for the state to provide all of the above in the absence of the family that the state has destroyed in pursuit of economic velocity. LIST OF FAMILY STRUCTURES SMALL HOMOGENEOUS HIGH TRUST PRIVILEGED SOCIETIES CAN TOLERATE HIGHLY REDISTRIBUTIVE GOVERNMENTS STATE FINANCED SINGLE PARENT FAMILY – Medium term and short term pairings with or without a marriage ceremony that produces offspring, whereupon the parents cease cohabitation, and state redistribution finances directly or indirectly the support of the mother’s household. HIGH TRUST SOCIETIES WITH HIGHER ECONOMIC VELOCITY, CAN TOLERATE LIBERTARIAN GOVERNMENTS ABSOLUTE NUCLEAR FAMILY – The “absolute nuclear” family is liberal and non-egalitarian (that is, indifferent to equality). Children are completely free upon adulthood, founding independent families. Inheritance is freely distributed by will. NUCLEAR FAMILY, EGALITARIAN NUCLEAR – The “egalitarian nuclear” family is liberal and egalitarian. Children are completely free upon adulthood, founding independent families. Inheritance is equally distributed, implying at least a vestigial necessary link between parents and children throughout their lives. MEDIUM TRUST MARGINAL SOCIETIES WITH MEDIUM ECONOMIC VELOCITY – REQUIRE SOCIAL DEMOCRATIC GOVERNMENTS EXTENDED FAMILY, STEM FAMILY, AUTHORITARIAN FAMILY – The “stem” family is authoritarian and inegalitarian. Several generations may live under one roof, notably the first-born, who will inherit the entirety of property and family headship (and thus perpetuate the family line). Other children typically leave the home to get married or become priests/soldiers. A family that extends beyond the immediate family, consisting of grandparents, aunts, uncles, and cousins all living nearby or in the same household. The stem family is sometimes associated with inegalitarian inheritance practices, as in Japan and Korea, but the term has also been used in some contexts to describe a family type where parents live with a married child and his or her spouse and children, but the transfer of land and moveable property is more or less egalitarian. In these cases, the child who cares for the parents usually receives the house in addition to his or her own share of land and moveable property. LOW TRUST, POOR SOCIETIES WITH LOW ECONOMIC VELOCITY – REQUIRE AUTHORITARIAN GOVERNMENTS TRADITIONAL FAMILY, COMMUNITARIAN FAMILY – The “communitarian” family is authoritarian and equal. Several generations live under the same roof until the eldest die and the inheritance is divided equally. HETAERISTIC MONOGAMY – Monogamy with frequent extra marriage sexual relations. PAIRING FAMILY, SERIAL MARRIAGE – Medium term pairing of individuals either in patrilineal or matrilineal property systems. CONSANGUINE FAMILY – three generations of interrelated individuals live together (pre-polynesian) without any prohibition on relations. Property is irrelevant in this system.
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Is Bitcoin Superior?
Question: —“Curt, does Bitcoin meet this Criteria? Is Bitcoin superior to Gold in terms of means of exchange?”—
Steven,
[I]nteresting question. Lets look at the list.
1) Scarcity (no. as long as people want them we can create more of them at a constant rate – the problem is actually the opposite: requiring constant adjustment to the weights to require enough work to maintain consistent value. Otherwise we could produce them infinitely without cost.)
2) Commodity Utility. (no. it has no intrinsic use.)
3) Non-perishability (no. because like the stock market they require infrastructure for redemption.)
4) Volume and weight to value ratio (yes)
5) Nearly universal convertibility (not yet, and until we get to 10 second blocs, which kind of defeats the purpose, I suspect we wont get there.)
6) Functional unit of account, store of value, and medium of exchange. (not yet. Not enough volume).UNDERSTANDING THAT BITCOIN ISN’T MONEY – IT’S FRACTIONAL SHARES OF THE BITCOIN NETWORK.
A bitcoin consists of a fractional share of stock in the bitcoin network. What separates the shares of stock in bitcoin from shares of stock in other publicly and privately traded stocks, is (a) that one need not go through a clearing house (anyone with a wallet can clear an exchange), and (b) that one can sell a fractional portion of a share of his stock (a bitcoin).
Just as any other business can fail, so can the bitcoin network. It is fully open sourced, fully transparent organization, operated by pretty good incentives, but that does not mean it cannot fail, and that those shares cannot be worthless. (In fact, it’s just as likely as not.)
BItcoin provides low transaction costs. And I suspect that it will result in a lower cost means of transferring money, rather than as money itself.
Now, I know a lot about the subject of what is money and what isn’t. Technically speaking, bitcoins are fractional shares of stock usable under some conditions as a money substitute that we call token money, for the purposes of decreasing transaction costs.
It is an ingenious way of funding a business. It is however, not ‘money proper’. Or, in classical language ‘money in the narrow sense’.
(Of course, that won’t stop a zillion imbeciles from spewing nonsense at me but that’s the reality of it.)
It is very unlikely that anything will surpass gold as a currency of last resort. And in truth, the currency of the reigning world powers will except under shocks, always be a better store of value than gold because prices are harder to manipulate than the price of gold, since governments work hard to insure that they are the exclusive manipulators.
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Is Bitcoin Superior?
Question: —“Curt, does Bitcoin meet this Criteria? Is Bitcoin superior to Gold in terms of means of exchange?”—
Steven,
[I]nteresting question. Lets look at the list.
1) Scarcity (no. as long as people want them we can create more of them at a constant rate – the problem is actually the opposite: requiring constant adjustment to the weights to require enough work to maintain consistent value. Otherwise we could produce them infinitely without cost.)
2) Commodity Utility. (no. it has no intrinsic use.)
3) Non-perishability (no. because like the stock market they require infrastructure for redemption.)
4) Volume and weight to value ratio (yes)
5) Nearly universal convertibility (not yet, and until we get to 10 second blocs, which kind of defeats the purpose, I suspect we wont get there.)
6) Functional unit of account, store of value, and medium of exchange. (not yet. Not enough volume).UNDERSTANDING THAT BITCOIN ISN’T MONEY – IT’S FRACTIONAL SHARES OF THE BITCOIN NETWORK.
A bitcoin consists of a fractional share of stock in the bitcoin network. What separates the shares of stock in bitcoin from shares of stock in other publicly and privately traded stocks, is (a) that one need not go through a clearing house (anyone with a wallet can clear an exchange), and (b) that one can sell a fractional portion of a share of his stock (a bitcoin).
Just as any other business can fail, so can the bitcoin network. It is fully open sourced, fully transparent organization, operated by pretty good incentives, but that does not mean it cannot fail, and that those shares cannot be worthless. (In fact, it’s just as likely as not.)
BItcoin provides low transaction costs. And I suspect that it will result in a lower cost means of transferring money, rather than as money itself.
Now, I know a lot about the subject of what is money and what isn’t. Technically speaking, bitcoins are fractional shares of stock usable under some conditions as a money substitute that we call token money, for the purposes of decreasing transaction costs.
It is an ingenious way of funding a business. It is however, not ‘money proper’. Or, in classical language ‘money in the narrow sense’.
(Of course, that won’t stop a zillion imbeciles from spewing nonsense at me but that’s the reality of it.)
It is very unlikely that anything will surpass gold as a currency of last resort. And in truth, the currency of the reigning world powers will except under shocks, always be a better store of value than gold because prices are harder to manipulate than the price of gold, since governments work hard to insure that they are the exclusive manipulators.
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Return on Respect for Property Rights
[W]hat is the return on an individual’s respect for property rights?
For him?
For the polity?
For man?We cannot construct the voluntary organization without widespread respect.
So then how do we calculate the cost if that adherence?
Labor has no known value except in exchange. At which point we learn its value.
But respect for property rights, and active construction and perpetuation of them, always produces value.
Earlier thinkers assumed that membership and participation in the market was sufficient compensation for respecting property rights.
But this exchange was possible only because of the possibility of entry.
In a world of mandatory inclusion, this choice no longer exists.
In a world of marginally different productivity, where the underclasses no longer can provide useful skills, they are mandatorially included, but necessarily excluded.
In fact, their only value is in providing instructions in the form of demand, for the organization of production to satisfy their wants and to reward producers.
But they have nothing to exchange except constructing and maintaining the voluntary organization of production.
This presents us with a logical contradiction. They are forcibly included but necessarily excluded.
How do we solve this contradiction?
Par them for services rendered, and do not pay them if they fail to render services.
Voluntary exchange.
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Return on Respect for Property Rights
[W]hat is the return on an individual’s respect for property rights?
For him?
For the polity?
For man?We cannot construct the voluntary organization without widespread respect.
So then how do we calculate the cost if that adherence?
Labor has no known value except in exchange. At which point we learn its value.
But respect for property rights, and active construction and perpetuation of them, always produces value.
Earlier thinkers assumed that membership and participation in the market was sufficient compensation for respecting property rights.
But this exchange was possible only because of the possibility of entry.
In a world of mandatory inclusion, this choice no longer exists.
In a world of marginally different productivity, where the underclasses no longer can provide useful skills, they are mandatorially included, but necessarily excluded.
In fact, their only value is in providing instructions in the form of demand, for the organization of production to satisfy their wants and to reward producers.
But they have nothing to exchange except constructing and maintaining the voluntary organization of production.
This presents us with a logical contradiction. They are forcibly included but necessarily excluded.
How do we solve this contradiction?
Par them for services rendered, and do not pay them if they fail to render services.
Voluntary exchange.
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Peace is an Idiot's Obsession
Peace is an idiot’s obsession.
[T]he only rational pursuit is the positive expression in property rights of the negative prohibition on free riding. Violence toward that end is always rational and moral. Peace is an undesirable pursuit, since it simply justifies whatever level of immorality is currently extant.
People who pursue peace for its own sake are, if necessity, immoralists.
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Peace is an Idiot’s Obsession
Peace is an idiot’s obsession.
[T]he only rational pursuit is the positive expression in property rights of the negative prohibition on free riding. Violence toward that end is always rational and moral. Peace is an undesirable pursuit, since it simply justifies whatever level of immorality is currently extant.
People who pursue peace for its own sake are, if necessity, immoralists.
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Peace is an Idiot's Obsession
Peace is an idiot’s obsession.
[T]he only rational pursuit is the positive expression in property rights of the negative prohibition on free riding. Violence toward that end is always rational and moral. Peace is an undesirable pursuit, since it simply justifies whatever level of immorality is currently extant.
People who pursue peace for its own sake are, if necessity, immoralists.
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Peace is an Idiot’s Obsession
Peace is an idiot’s obsession.
[T]he only rational pursuit is the positive expression in property rights of the negative prohibition on free riding. Violence toward that end is always rational and moral. Peace is an undesirable pursuit, since it simply justifies whatever level of immorality is currently extant.
People who pursue peace for its own sake are, if necessity, immoralists.