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- Hey guys, let's build some pyramids!
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 - Crazy how a higher than expected inflation number causes traders to sell gold and buy dollars. Gold does best when inflation is rising, and higher inflation means the dollar is losing purchasing power. The selling should be in the bond and stock markets.
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 - What do Trump and Clinton plan to do to address Fed reform? Find out where they stand with our handy infographic:… http://bit.ly/2fU8clV
 - Regulators to Shut Down Health Republic Insurance of New York - Thanks Obama!
 - Or did the Clinton machine get Comey's mind right just in the nick of time?
 - @AnoopVerma77 He has plenty of children, but hopefully they will not be able to carry on the family business.
 - Merry Christmas & Happy Holidays from all of us here at SchiffGold. http://bit.ly/2C1EeV5
 
Sunday, August 2, 2015
Is social welfare increased (using Rothbard's demonstrated preference criterion) when I pay a ransom to free a hostage?
From Rothbard's essay on the subject to remind everyone of the details... >Now what happens when the State, or a criminal, uses violence to interfere with exchanges on the market? Suppose that the government prohibits A and B from making an exchange they are willing to make. It is clear that the utilities of both A and B have been lowered, for they are prevented by threat of violence from making an exchange that they otherwise would have made. Clearly we can't say that paying a ransom is one's demonstrated preference, because it is an action motivated by coercion. So how do you argue that individuals should be allowed to pay ransoms? If you say "it's their utility-maximising choice under the circumstances", I could easily reply that paying one's taxes similarly increases utility. I could say it is a Pareto improvement to let people pay ransoms, but not sure how to put it into Rothbard's language. I don't think he would say social welfare is increased by government allowing individuals to pay ransoms, because all it is doing is enabling B to rob A. But then A would prefer to be robbed than see C be killed...