Best of the Week
Most Popular
1.How U.S. Dollar Destruction Threatens the Global Economy - Steve Forbes
2.Why UK House Prices Will Continue Rising - 'It's Immigration Stupid' - Nadeem_Walayat
3. Bitcoin Price at Beginning of a Move up? - Mike_McAra
4.Gold Price to Plunge, Visiting Fort Knox - David_Hague
5.Silver Price Forecast - Metal to Gain Ground in August on These Factors - Jim Bach
6.Gold And Silver Will Rise With US Dollar Demise, Just Not Soon - Michael_Noonan
7.Bitcoin Price Strong Move Possible - Mike_McAra
8.Israel Gaza War Crimes - Soldier's Ordered to Shoot Civilians Including Children - C4News - C4News
9.UK House Prices Crash Warning - Daily Mail Cognitive Dissonance - Nadeem_Walayat
10.UK House Prices Boom - Top Quick Cheap Tips to Help Sell Your Home - Nadeem_Walayat
Last 5 days
Peak Gold? Russia To Surpass Australia As World No 2 Gold Producer - 20th Aug 14
AI, Robotics, and the Future of Jobs - 20th Aug 14
Stock Market Investors What's Your Exit? - 20th Aug 14
The Gold War - Thinker, Trader, Holder, Why? - 20th Aug 14
Ukraine Interest Rates Soars to 17.5% As External Debt Cannot be Repaid - 20th Aug 14
Rising Interest Rates and The End of Stimuland - 20th Aug 14
Inflation Watch: $245,000 to Raise a Child in United States - 20th Aug 14
Inside the Stunning Deal That Put Apple and IBM on the Same Side - 20th Aug 14
The US Gold in Fort Knox is Secure, Gone, or Irrelevant? - 19th Aug 14
Bitcoin Price On The Brink of a Possible Reversal - 19th Aug 14
Why Tesla Stock Price Will Double in the Next 12 Months - 19th Aug 14
Europe's Economic Malaise: The New Normal? - 19th Aug 14
The Coming U.S. Economic Collapse Will Trigger a Revolution - 19th Aug 14
Market Bubbles, Bubbles Everywhere - 19th Aug 14
This is Your Economic Recovery With and Without Drugs - 19th Aug 14
Stock Market Strong Start to Jackson Hole Week - 19th Aug 14
Iraq, Ukraine - Oh, What A Tangled Mess We Weave - 19th Aug 14
How to Apply Moving Averages as a Trading Tool - Video - 18th Aug 14
Why Short Stock Traders Are Losing Money This Week - 18th Aug 14
Stock Market Rally May be Complete - 18th Aug 14
Why Chinese Citizens Invest In Gold - 18th Aug 14
Palladium Reaches 13-Year High Over $900 oz as Gold Trading Volumes Surge 66% - 18th Aug 14
Understand and Profit from Surging European Volatility - 18th Aug 14
No Escape from The Dollar as The Currency Standard - 18th Aug 14
Stock Market New Highs Less Certain - 18th Aug 14
German Stock Market DAX About To Drop - 18th Aug 14
Stay on Board - Stock Market Big Picture - 18th Aug 14
Europe Economy Is Tanking, QE Is Coming - 18th Aug 14
Are You Ready for The Greatest Technology Revolution Yet? - 17th Aug 14
Why King Coal is Bigger than Oil or Gas - 17th Aug 14
U.S. Empire of Death and Lies - 17th Aug 14
Ukraine - Whose Spin Are We Caught Up In Here? - 17th Aug 14
Time Decay And No Escape For Abenomics - 17th Aug 14
India BSE SENSEX The Party Is Over In Bombay - 17th Aug 14
Stock Market Uptrend Looks Underway - 17th Aug 14
The Key Role Of Conspiracy Theory In Dumbing Down Society - 17th Aug 14
The Federal Reserve in Denial Mode - Bond Market Explained - 17th Aug 14
Stock Market Ukraine-Triggered Volatility, But a Flat Finish - 16th Aug 14
Stock Market Investors Conditioned To Catch The Falling Knife - 16th Aug 14
Decline And Fall Of The CO2 Crisis - 16th Aug 14
Gold Stocks Major New Upleg - 15th Aug 14
Don’t Assume What Is “Unseen” Doesn’t Exist - 15th Aug 14
HUI, Gold and Silver; Fun With Monthly Charts - 15th Aug 14
Cry for Argentina: Fiscal Mismanagement or Pillage? - 15th Aug 14
New 'LBMA Silver Price' - Still Not Transparent - 15th Aug 14
America the Neighborhood Bully Recklessly Throws its Weight Around - 15th Aug 14
The Single Best Investment for the Semiconductor Tek Stock Boom - 15th Aug 14
The Something For Nothing Society - Inflation and Getting Paid NOT to Work - 15th Aug 14
Forecasting Ability of the Elliott Wave Principle - Trader Education - 15th Aug 14
The Most Hated Stocks Bull Market - 15th Aug 14 - Puru_Saxena
America's First Oil Sands Producer and Other Natural Resources Surprises - 15th Aug 14
Life and Times in Propagandistan - 15th Aug 14
The Biggest Lesson from Microsoft’s Recent Battle with the US Government - 15th Aug 14
Russian Bear Rattles Stock Markets, but Plunge Protection Team Rides to the Rescue - 14th Aug 14
Back In Iraq: We Only Want To Save You - 14th Aug 14
Learn How to Spot High Confidence Chart Trade Setups for FREE! - 14th Aug 14
More Bad News is Good News for the Stocks Bulls - 14th Aug 14
If Mr. Rogers Ruled Wall Street - 14th Aug 14
Government Spending and Negative Interest Rates - 14th Aug 14
Gold, Silver, Dow and VIX Market Updates - 14th Aug 14
Don't Get Ruined by These 10 Popular Investment Myths - 14th Aug 14
Gold and Silver Miners that Can Make Money Now - 14th Aug 14
Low and Expanding Risk Premiums Are the Root of Abrupt Stock Market Losses - 13th Aug 14
Stock Market at the Precipice - 13th Aug 14
When Gold Miners Have Already Rallied – Will Metals Follow? - 13th Aug 14
Oil Market QE Premium Is Coming out of Price - 13th Aug 14
Putin is Winning the New Cold War - 13th Aug 14
No Silver Money For Mexico, But Perhaps Gold For Eurasia - 13th Aug 14 -
Japan Economic Collapse - GDP Plunges by 6.8%! - 13th Aug 14
Confusion To New “London Silver Price” Launch This Friday - 13th Aug 14
Interest Rate Policy Global Divergence - Really? - 13th Aug 14
Stock Market Two-Day Rally Ends with a Small Loss - 13th Aug 14
Resources Stocks Where to Stash Your Money When Europe Heats Up? - 13th Aug 14

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

The Biggest lie in Stock Market History Revealed

Why Governments Can Do No Good

Politics / Social Issues Jul 18, 2013 - 12:48 PM GMT

By: Jeff_Berwick

Politics

Government cannot do any desirable thing better than the market. It's physically impossible for them to do so, like chewing on your own jawbone. By its very nature, government is designed to disregard actual wants. It pretends to listen while it simply imposes. It steals money to fund whatever “services” it claims to be providing. That theft makes the situation a monopoly based on the violence inherent in the threat of force (kidnapping, caging and possible murder) behind the collection of taxes.


What you end up getting is an inefficient and often harmful perversion of what you actually wanted. And you have to pay for them no matter what. That makes these “services” immune to market forces. You can't take your money elsewhere as you could in the free market when a provider isn't making you happy. With government, even if you opt for a private sector version of the government's “services”...you STILL have to pay for the government services you don't use. That's like having to pay Walmart even if you buy at Target.

It's this mechanism of funding-despite-dissatisfaction that keeps government behind the market in terms of the quality of the service it provides. But let the market in just a bit and it will almost immediately start to outperform the “service” of the violent monopoly. That's why government seeks to use its powers of violence to keep the private sector out as long as possible.

This was the case with early individualist anarchist Lysander Spooner. His private mail service, the American Letter Mail Company, managed to find commercial success in direct competition with the notoriously expensive violent monopoly of the US Postal Service. So of course the US government litigated his company to death.

Spooner got the posthumous last laugh. The Internet has turned the USPS into a comical anachronism while private companies like UPS, FedEx and others chip away at the remainder of the parcel market.

Some things, however, seem on the surface in such dire need of centralized, violent monopoly that even freedom-minded people are willing to leave them to the government. The main culprits here are courts, police, national defense and roads. Roads in particular are foremost in the minds of the statists when people like me argue that the laws of economics don't stop working in select places. “Who would build the roads they ask?”

“Who needs ****ing roads?” we reply.

Roads are a Stone Age atavism kept alive by the state. Much better solutions abound and would have been implemented long ago if the state hadn't been diverting precious resources from these free market solutions via taxation. The artificial availability of roads thanks to stolen funds (taxes) are what encourage the car-dependent automobile suburbs and exurban development that people have come to accept as the modern normal. The free market would have encouraged a very differently built environment suitable to a healthy mix of transportation systems. There would have likely been much denser development and a lot more fixed-path transit (rail).

And minus government theft, the billions of dollars that got diverted (by force) into highways and suburban road systems would have been available for something else. And that something would likely have been evacuated tubes.

The idea behind evacuated tubes is decades old. It's basically space travel here on Earth where air friction normally acts as a brake on speed. Eliminate ground friction with airplanes and magnetically levitated trains and you get speeds in the hundreds of miles per hour range. Eliminate air friction with a (near) vacuum along with ground friction and you can get speeds in the thousands of miles per hour range.

Evacuated tube systems could allow passenger or cargo cylinder cars to move up to 4,000 mph. A tube “backbone” could be built across continents and reduce travel time from New York to Beijing to just a couple of hours. One tube could handle the equivalent of an 80-lane highway per unit of time. And because the tubes would feature electromagnetic levitation, much less material would be required to build the infrastructure than with any rail system since there would be no need to support heavy rail cars. The initial construction costs would be high, but then such a system would be monstrously cheap to operate. In true free market fashion, quality, safety and speed would multiply while costs of use would plummet.

While California's government is spending millions of stolen dollars for old technology on a high-speed rail boondoggle, companies like ET3 and Tesla Motors are hard at work bringing the seemingly sci-fi of evacuated tube transport to life. In the very near future, we may be laughing at the primitive notion of plowing through the atmosphere in slow, bulky, accident-prone missiles ...or putting up with tens of thousands of highway fatalities per year on the expensive old world highway system.

Sadly, we aren't already at this point because of the tragic diversion created by the government. While myopic statists ask “who will build the roads?”, those of us who understand freedom, economics and progress ask, “where are our evacuated tubes...and flying cars and levitating pods?” We weep at the thought of the billions upon billions of dollars that were stolen to keep us in the Stone Age.

Governments suck at everything. At least everything worthwhile. Theft, pandering, intimidation, spying, kidnapping, brutality, mass murder and mass destruction...those things governments have down pat. In these realms they can't be beat. But when it comes to things people actually want...well, like I said before, it's hard for people to get what they want when they can't withdraw their consent by withholding funds. The good news, however, is that the forced funding of collectivist socialist/fascist/communist systems always leads toward collapse.

The Western World is leading the way in collapse right now, especially the USSA. Meanwhile in Chile the highways – old tech that they are – are privatized and glorious. The Chilean government manages to be just under 30% or so of GDP, too. Chile is as free market as you can be in this world of scabby nation-states, which is why things are booming there in a decidedly sustainable, non-bubbly manner. It's also a large part of the reason Chile was chosen to host Galt's Gulch.

Latin America as a whole is just a much better bet right now. It may be hard for some to recognize now, but the West is in terminal decline while Latin America is on the rise. Galt's Gulche, Chile is one fantastic way to get in on the ground floor while the getting is scandalously good.

Anarcho-Capitalist.  Libertarian.  Freedom fighter against mankind’s two biggest enemies, the State and the Central Banks.  Jeff Berwick is the founder of The Dollar Vigilante, CEO of TDV Media & Services and host of the popular video podcast, Anarchast.  Jeff is a prominent speaker at many of the world’s freedom, investment and gold conferences as well as regularly in the media.

© 2013 Copyright Jeff Berwick - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Jeff Berwick Archive

© 2005-2014 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Free Report - Financial Markets 2014