Friday, December 25, 2009

It's Called "Monetary Policy"

clipped from
A chief Austrian finding is that counterfeiting causes malinvestment. The fact that most counterfeiting is done by governments and called monetary policy does not change the consequences one iota. --Richard Maybury

Counterfeit n (15c) 1: Forgery 2: something likely to be mistaken for something of higher value.

Imagine if the Louvre crafted a near-perfect counterfeit Mona Lisa and hung it in the gallery behind bulletproof glass. Then imagine that the Louvre held a public auction selling the real Mona Lisa, but also refused to admit that the one in the gallery was a fake. Ridiculous! Isn't it?

In most cases a counterfeiter wants to pass off his work onto an unsuspecting and paying public or to a specific mark. This is true for works of art as it is for currency. The counterfeiter must make his work at least good enough to pass muster with the inteded mark.
We live today in a world of rampant fraud and misinformation.