The Economy’s Screwed – To The Pub! (Part II)

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Not much action in the markets. So let’s go back to our story

At the Kilkenomics economics festival in Kilkenny, Ireland…

We had just taken the first hit. It was an informal debate, in front of a crowd of drunken Irishmen. And our opponent was already way ahead. He had won over the audience with a well-argued series of blasts.

We charged our guns…making notes on the back of an envelope. We prepared to fire back. But our opponent had also laid a thick smokescreen over the whole area. So many misconceptions…so many bad ideas:

…that capitalism has anything to do with the system of crony banks, managed economies and zombie regulators…

…that the regulators protect average people…rather than the industries they regulate…

…that deregulation is what caused the crisis of 2008…

…that you can’t have law without having government (what legislature wrote the Ten Commandments, for Pete’s sake?)

…that the government is the source of all substantial innovation… Good God, they think Al Gore invented the internet!

We tacked hard to the right. We aimed our cannon. There was no point in asking for quarter or seeking safe harbour somewhere in the middle. This was going to be a bloodbath. Better to aim high and hit hard.

But there was fog everywhere. The audience was already deep into their pints even before the show began. We had raised a pint, too, leaning on the bar and talking with our Bonner & Partners Family Office investment director Chris Hunter and Telegraph columnist Liam Halligan.

And now, with the smoke pumped out by the other side, the battle was going to be pure chaos.

How could we keep people listening for long enough to blow away the confusion? We could think of only one thing that might hold their attention:

Look, let’s start at the beginning. There are only two ways to get what you want in this life. You take it by force and violence. Or you get it peacefully…by making, trading, and cooperating with others.

That’s true of material wealth. It’s true of stuff. It’s true of power and status. And it’s as true of sex as it is of everything else. You can get it by negotiation…or you can get it by brute force.

So, let’s try to agree on the basics. Wouldn’t you all agree that we’re better off generally if stick with consensual, peaceful, cooperative ways to get what we want in life?

The audience was quiet.

OK…well, you’re all hopeless. Girls, don’t let a stranger walk you home in this town!

Seriously, I’m not saying that there aren’t plenty of cads and gigolos in what we call the ‘free market.’ But it’s still not like the government, which is full of rapists! Whatever it wants, it can get it by holding a gun to your head. Every law and regulation — no matter how silly or how stupid — is backed by the threat of violence.

That is, of course, why people like it so much. It’s the fastest and easiest way to get what you want. No persuasion necessary. No seduction involved. You don’t have to buy dinner and a few drinks.

Plus, it’s the oldest and surest way. Humans have been around for about 200,000 years. And for the first 190,000 years…not to mention the millions of years that came before…force was about the only game in town.

The supply of edible animals…and more importantly, women…was limited. It was a zero-sum game. If you wanted to get ahead, you had to be prepared to take something away from someone else. Otherwise, it was likely that someone would take something away from you.

And look at it from the woman’s point of view. You were going to live to be 40 years old if you were lucky. You were going to have a few children, few of whom would live to adulthood. Who would you want to be the father of those children, someone who was capable of defending you and your children…or someone who would be killed or pushed aside?

Note, also, that when a new man took over…he would likely kill any infant children you had so that you would be ready to bear his child as soon as possible.

Yes, we are programmed by millions of years of evolution to use force and violence to get what we want. But it is a win-lose game. You only get more power, more status or more wealth by taking it away from other people.

Regards,

Bill Bonner
for The Daily Reckoning Australia

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Bill Bonner

Bill Bonner

Best-selling investment author Bill Bonner is the founder and president of Agora Publishing, one of the world's most successful consumer newsletter companies. Owner of both Fleet Street Publications and MoneyWeek magazine in the UK, he is also author of the free daily e-mail The Daily Reckoning.
Bill Bonner

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5 Comments on "The Economy’s Screwed – To The Pub! (Part II)"

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truth and integrity
Guest
Some people think we are progressing. We however have sunk very low from many years past. There was an Israelite man 4000 years ago who was the greatest treasurer and politician of all time. He introduced a 20% tax on the people to bring them through the seven good years and the seven years of famine. The people of two countries held him in the highest esteem. In fact he was a foreigner to Pharaoh who trusted him above all his own people. Yes Joseph after being sold into slavery always looked forward and never back, was the fairest man… Read more »
derek
Guest

Very philosophical editorial, I’m neither day trader nor a prepper, I enjoy macro concepts and how money controls society, human nature shouldnt be overlooked.

Bender
Guest

I agree, society has changed… Hell, where would you find three wise men let alone a virgin?

123
Guest

Great post Bill.
For too long you’ve been pussyfooting around or wrapped up in your zombie diatribes (zombies are sooo low level).

Finally, when hard pressed, sink or swim, you hit upon the root of the issue. Government as it exists today doesn’t equal consensus, instead it equals force.

Now, follow up that epiphany. Is government ruled by the Free Shit Army & pampered gov bureaucrats (i.e. zombies) or is it instead ruthlessly controlled by a very select group at the top.

Your credibility is on the line and I’m not a drunken Irishman.

knedo
Guest
A great light hearted approach Bill, thanks! However there is a very deep ingrained perceptions that the market is simply a piece of cake, that has to be fastidiously segmented for each of the nasty little party goers. Presumably this division can only be equitably done by a high handed mommy, who, over all other things, hates the pandemonium that a ‘minute unfair crumb’ will cause to spoil a bloody great party. Oh the tears and hissy fits of the snotty nosed unjustly treated. An ingrained perception only? This understates the problem. There is an extended ideology that is deeply… Read more »
wpDiscuz
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