In a plush downtown Auckland hotel yesterday a man got up in front of a well-dressed and well-fed audience and announced the following:
I have a dream job.
My product is in daily use.
The government jails my competitors.
We ourselves set the selling price.
Our production costs are only a fraction of the product’s value.
And we make hundreds of millions of dollars profit every year.So here are my two questions for you:
- Who is this man?
- Who does he work for?
- And what do they produce?
Answers over the fold—or click the link above for a definitive clue.
The answers, of course, are
- Reserve Bank flunky Simon Tyler speaking at yesterday's INFINZ Capital Markets Forum at the Langham Hotel,
- The Reserve Bank of New Zealand, and
historical fact that money originated completely in private hands, and not by government fiat; and, second, to peruse The Ethics of Money Production, a pioneering work by Jörg Guido Hülsmann, professor of economics at the University of Angers in France and the author of the first full study of a critically important issue today: the ethics of money production.
"Hülsman is speaking not in the colloquial sense of the phrase 'making money,' [says this review at the Mises Blog] but rather the actual production of money as a commodity in the whole economic life. The choice of the money we use in exchange is not something that needs to be established and fixed by government.
"In fact, his thesis is that a government monopoly on money production and management has no ethical or economic grounding at all. Legal tender laws, bailout guarantees, tax-backed deposit insurance, and the entire apparatus that sustains national monetary systems, has been wholly unjustified. Money, he argues, should be a privately produced good like any other, such as clothing or food."