Alex Eser, economist and author, discusses his book on monetary anarchy, covering topics such as the origin of knowledge, the difference between democracy, anarchy, and minarchy, and the possibility of monetary anarchy on the Bitcoin standard.
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Quick takeaways
States thrive on war and engage in conflicts to establish dominance.
Fractional reserve banking is a fraud and a confidence game, relying on trust and limited redemptions.
Democracy shifted decision-making from long-term goals to short-term self-interests of politicians.
Monetary anarchy represents a shift from a debt-based economy to an equity-based economy.
Deep dives
The Emergence of States
States emerged as a solution to conflicts and social hierarchies in societies. Initially, natural leaders resolved conflicts, but over time, kings emerged promising debt relief and land redistribution. Monarchies transitioned to democracies, where politicians with short-term interests came to power. States thrive on war and engage in conflicts to establish dominance. Fiat currency emerged when states detached it from underlying commodities, using war as an excuse. States monopolize money production and inflate the currency to fund their activities.
Fractional Reserve Banking
Fractional reserve banking emerged as banks issued more redeemable certificates than they had gold in their reserves. Trust in the solvency of banks became crucial, and the state intervened to ensure the banks' continued operation, suspending redemptions if necessary. Fractional reserve banking is a fraud and a confidence game, relying on trust and limited redemptions. It only exists due to the state's intervention and control over the monetary system.
Evolution of Stateism
States evolved from natural leaders and aristocrats to monarchies and eventually democracies. Democracy shifted decision-making from long-term goals to short-term self-interests of politicians. The path of statism leads to infinite war between states competing for power. Wars are incentivized by states to expand their territory or protect their own interests. Atomic bombs have prevented major global wars, but the long-term consequence of stateism is anarchy among states.
Anarchy and Morality
Anarchy refers to a society without rulers, not without rules. Market anarchy implies a free market without centralized interference or regulation, while political anarchy suggests a society without a centralized government. In theory, individuals could live in a society based on private property rights and the non-aggression principle, where conflicts are avoided through moral behavior. Protection services could arise through market competition to handle individuals who do not comply with the non-aggression principle.
The Shift to an Equity-Based Economy
Monetary anarchy represents a shift from a debt-based economy to an equity-based economy. In this new system, there are no bailouts, and bad financial decisions have real consequences. The focus is on making productive investments based on saved capital, rather than creating money out of thin air. This transition may initially cause distress and bankruptcies, as the current system crumbles. However, it paves the way for a society that prioritizes what truly moves humanity forward, gathering knowledge and advancing civilization.
The Disruptive Power of Bitcoin
Bitcoin is a disruptive force against stateism and challenges the narrative of central authority. It removes the ability for governments to engage in economic voter fraud through endless money printing. With Bitcoin as an incorruptible voting system, it offers a true democracy and allows the market to determine what works best. Governments may attempt to attack Bitcoin through propaganda, but the truth is that Bitcoin poses no significant technical threats. The longer Bitcoin survives without being hacked, the less likely it is to be hacked.
The Journey to a Society Rooted in Private Property
Monetary anarchy represents a journey towards a society rooted in private property and voluntary exchange. It aims to separate money from the state and limit its role to arbitration and conflict resolution. While the transition may be painful, leading to bankruptcies and financial distress, the end goal is a society that focuses on advancing humanity and tricking nature. This equity-based economy eliminates bailouts and encourages capital allocation based on sound economic principles.
Alex Jeser joins me to talk about his book, “Monetary Anarchy: The Separation of Money and State”. We discuss the origin of knowledge, how warfare benefits the state, the difference between democracy, anarchy and minarchy, and whether monetary anarchy is possible on the Bitcoin standard.
Alex Jeser is an economist, author, and technology entrepreneur.
// OUTLINE // 00:00:00 - Coming up 00:00:33 - Intro 00:02:06 - Helping Lightning Startups with In Wolf's Clothing 00:02:52 - Alex Jeser’s Economic Background and Discovering Bitcoin 00:06:18 - The Origin of Knowledge 00:10:23 - Empiricism and Rationalism 00:13:32 - What is Money? 00:17:16 - Different Types of Money 00:21:08 - What is Inflation? 00:23:56 - Why Free Market Money Gets Outlawed? 00:30:37 - Fractional Reserve Banking 00:38:03 - Emergence and Purpose of Nation States 00:48:52 - Is Democracy a Success or Failure? 00:50:42 - Run Your Business from Anywhere with NetSuite 00:51:47 - Secure Your Bitcoin Stash with the iCoin Hardware Wallet 00:52:44 - How Warfare Benefits the State 00:57:10 - Interstate Anarchy and Fiat System 00:59:12 - Anarchy Based on Morals and Markets 01:10:47 - Anarchy and Bitcoin 01:17:22 - What is Minarchy? 01:23:00 - True Democracy of Bitcoin 01:26:15 - A World Without States 01:29:08 - Bitcoin: An Incorruptible Economic Voting System 01:31:05 - Enhance Your Brain Power with Mind Lab Pro 01:32:11 - Take Control of Your Healthcare with CrowdHealth 01:33:13 - A Bitcoin Wallet with Privacy Built-In: Wasabi Wallet 01:34:05 - Can the State Stop Bitcoin? 01:38:52 - Strong Points of Bitcoin 01:42:27 - Illustrating Monetary Anarchy 01:47:36 - Does Monetary Anarchy Advance Civilization? 01:52:15 - Where to Find Alex on the Internet
