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.Thirdly, I would demand that any significant losses come directly out of the bank accounts andassets of those in charge of the currency.If I ended up only being paid 80 cents on the dollar,because they had screwed up the business, I would make damn sure that they ended up with zerocents on the dollar, and living in a van down by the river as well!This would eliminate the incentive for managers to prey upon the company for personal gain.Nomatter how badly their customers ended up, they would end up in a far worse situation.Fourthly, I would demand the right to withdraw all of my money at any time I wanted.Let us now trace the likely sequence of events that would occur if a currency company got intofinancial trouble.As mentioned above, the leadership and investors would be very quickly aware of any potentialproblem, and would be equally if not painfully aware that if a whiff of scandal or instability leakedinto the marketplace, their entire investment may very well go down the drain.Since voluntarism and a free society is all about preventing problems, rather than curing them thedirect opposite of statism, which is all about inventing problems, and then exacerbating them managers and investors would be hyper-vigilant in protecting the financial soundness of theirorganization.The success of any voluntary money system starts and ends with credibility and trust the moment that either becomes even remotely compromised, the entire system is called intoquestion.Competitors will always be looking for weaknesses in other monetary systems, and willprovide incentives to lure customers away.Thus the investors and managers would put everyconceivable check and balance in place to ensure that the system remained trustworthy.Should some upcoming problem escape them, however, and Company XYZ were to encounter realfinancial difficulties, what would happen?Well, when any company hits a financial problem, it is either because it is no longer viable, or it isbeing badly run.Since we have already established the innate value of and requirement forcurrency, we know that XYZ cannot be in trouble because no one needs its services anymore thusits difficulties must result from being badly run.If a company is being badly run, it can either reform itself from within, or it cannot.If XYZ can reform its management practices from within, then bankruptcy will not be the result ofits misstep some firings, some dropped bonuses, and some cutbacks, but not bankruptcy.Customers might not even have a clear sense that anything is amiss at all.Ah, but what happens if XYZ cannot reform itself from within?In any free market system, there exists a plethora of so-called raiders who are constantly lookingfor poorly-run companies to snap up and improve.These raiders would doubtless very quickly sniffout the problems within the company, and would try to take it over in some manner.128 | P a g e If I were one of these raiders, I would face a very difficult balancing act, which is that it would beadvantageous for me to leak the problems XYZ was experiencing, in order to drive down the valueof the company and pick it up for less money however, such a leak would also create a panicamong the customers, which could largely eliminate the value of the company.Thus, my best strategy would be to leak the problems at XYZ and simultaneously offer a guaranteeto existing customers that their currency would be protected, as well as some sort of incentive orbonus to retain their allegiance.I would be willing to put all of this in writing, of course, in a bindingcontract, which would take effect the moment I got control of the company.This would cause a temporary dip in the price of XYZ, thus allowing me to gain control of it morecheaply and would at least help alleviate the fears of existing customers by providing a bindingguarantee to retain the value of their money.However, as a raider, I would be facing significant competition from another source othercurrency companies.Company ABC, on hearing about any possible problems with XYZ, would immediately take out full-page advertisements, offering significant bonuses to any XYZ customers who transferred theirmoney to the ABC Company.There would be so many lifeboat companies offering to rescue XYZcustomers at par or greater that such customers would doubtless be able to walk to shore!It could be the case that whatever solution any individual customer chooses might not pan out inother words, a raider might offer a five percent bonus to currency holdings, and then fail to deliverit, falter in his execution, and customers might end up having to pull out at eighty or ninety cents onthe dollar.Color me cold, but I cannot see the innate tragedy in such a situation.Anyone who offers you free money does so with the implicit though perhaps unspoken background of risk.If I decide toleave my money in a troubled company, in the hopes of gaining five percent more, and I end upgetting ten percent less, it is hard to see how that is significantly different from investing in a stockor a bond or a horse, for that matter.Thus, there is no conceivable situation in which currency customers would wake up one day to findtheir savings utterly wiped out there is so much profit in customer retention, particularly incurrency situations, that a literal stampede of entrepreneurs would attempt to insert themselvesinto the equation, to the benefit of the existing customers.COMPARED TO WHAT?Doubtless there are ten thousand churning minds out there at this very moment, chanting theirheated way through every conceivable possibility that might result in financial ruin for customersof the XYZ Currency Company.And perhaps such a possibility exists but again, this is an argumentfor anarchism, not against it.Any farmer can fail to produce crops at any particular time this is a natural reality and risk offarming, or indeed of any human endeavor.129 | P a g e Since any farmer can fail to produce crops, the only way that we can guarantee as best as possible the continual supply of crops is to have a large number of farmers [ Pobierz całość w formacie PDF ]
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.Thirdly, I would demand that any significant losses come directly out of the bank accounts andassets of those in charge of the currency.If I ended up only being paid 80 cents on the dollar,because they had screwed up the business, I would make damn sure that they ended up with zerocents on the dollar, and living in a van down by the river as well!This would eliminate the incentive for managers to prey upon the company for personal gain.Nomatter how badly their customers ended up, they would end up in a far worse situation.Fourthly, I would demand the right to withdraw all of my money at any time I wanted.Let us now trace the likely sequence of events that would occur if a currency company got intofinancial trouble.As mentioned above, the leadership and investors would be very quickly aware of any potentialproblem, and would be equally if not painfully aware that if a whiff of scandal or instability leakedinto the marketplace, their entire investment may very well go down the drain.Since voluntarism and a free society is all about preventing problems, rather than curing them thedirect opposite of statism, which is all about inventing problems, and then exacerbating them managers and investors would be hyper-vigilant in protecting the financial soundness of theirorganization.The success of any voluntary money system starts and ends with credibility and trust the moment that either becomes even remotely compromised, the entire system is called intoquestion.Competitors will always be looking for weaknesses in other monetary systems, and willprovide incentives to lure customers away.Thus the investors and managers would put everyconceivable check and balance in place to ensure that the system remained trustworthy.Should some upcoming problem escape them, however, and Company XYZ were to encounter realfinancial difficulties, what would happen?Well, when any company hits a financial problem, it is either because it is no longer viable, or it isbeing badly run.Since we have already established the innate value of and requirement forcurrency, we know that XYZ cannot be in trouble because no one needs its services anymore thusits difficulties must result from being badly run.If a company is being badly run, it can either reform itself from within, or it cannot.If XYZ can reform its management practices from within, then bankruptcy will not be the result ofits misstep some firings, some dropped bonuses, and some cutbacks, but not bankruptcy.Customers might not even have a clear sense that anything is amiss at all.Ah, but what happens if XYZ cannot reform itself from within?In any free market system, there exists a plethora of so-called raiders who are constantly lookingfor poorly-run companies to snap up and improve.These raiders would doubtless very quickly sniffout the problems within the company, and would try to take it over in some manner.128 | P a g e If I were one of these raiders, I would face a very difficult balancing act, which is that it would beadvantageous for me to leak the problems XYZ was experiencing, in order to drive down the valueof the company and pick it up for less money however, such a leak would also create a panicamong the customers, which could largely eliminate the value of the company.Thus, my best strategy would be to leak the problems at XYZ and simultaneously offer a guaranteeto existing customers that their currency would be protected, as well as some sort of incentive orbonus to retain their allegiance.I would be willing to put all of this in writing, of course, in a bindingcontract, which would take effect the moment I got control of the company.This would cause a temporary dip in the price of XYZ, thus allowing me to gain control of it morecheaply and would at least help alleviate the fears of existing customers by providing a bindingguarantee to retain the value of their money.However, as a raider, I would be facing significant competition from another source othercurrency companies.Company ABC, on hearing about any possible problems with XYZ, would immediately take out full-page advertisements, offering significant bonuses to any XYZ customers who transferred theirmoney to the ABC Company.There would be so many lifeboat companies offering to rescue XYZcustomers at par or greater that such customers would doubtless be able to walk to shore!It could be the case that whatever solution any individual customer chooses might not pan out inother words, a raider might offer a five percent bonus to currency holdings, and then fail to deliverit, falter in his execution, and customers might end up having to pull out at eighty or ninety cents onthe dollar.Color me cold, but I cannot see the innate tragedy in such a situation.Anyone who offers you free money does so with the implicit though perhaps unspoken background of risk.If I decide toleave my money in a troubled company, in the hopes of gaining five percent more, and I end upgetting ten percent less, it is hard to see how that is significantly different from investing in a stockor a bond or a horse, for that matter.Thus, there is no conceivable situation in which currency customers would wake up one day to findtheir savings utterly wiped out there is so much profit in customer retention, particularly incurrency situations, that a literal stampede of entrepreneurs would attempt to insert themselvesinto the equation, to the benefit of the existing customers.COMPARED TO WHAT?Doubtless there are ten thousand churning minds out there at this very moment, chanting theirheated way through every conceivable possibility that might result in financial ruin for customersof the XYZ Currency Company.And perhaps such a possibility exists but again, this is an argumentfor anarchism, not against it.Any farmer can fail to produce crops at any particular time this is a natural reality and risk offarming, or indeed of any human endeavor.129 | P a g e Since any farmer can fail to produce crops, the only way that we can guarantee as best as possible the continual supply of crops is to have a large number of farmers [ Pobierz całość w formacie PDF ]