>>8859418 (pb)
You are correct.
Capitalism requires recognition, respect and defence of private property rights.
ALL rights, not just the rich and powerful.
Rights are a universal legal concept.
Equality before the Law.
“We hold these truths to be self evident. All men are created equal”.
Capitalism requires just law to exist and function.
At the very least, the law of Contract and the law of Tort.
Capitalism is NOT the law of the jungle (that is more like Socialism/Communism/Fascism)
Show me a jungle where the laws of Contract and Tort are in operation, where there is respect for private property rights.
There is no such place.
Capitalism is a profit AND loss system.
A Capitalist does not get to privatise profits and socialise losses.
A Capitalist does not get to buy special favours or protections.
A Capitalist competes to be allowed to cooperate with customers.
A Capitalist can not force or impose an economic relationship.
Participants in a Capitalist system engage in trade because they both expect to be better off as a result.
Capitalism requires sound money.
Capitalism is incompatible with Central Banking fiat money.
Profits and losses are signals that tell a Capitalist when they have been successful (or not) in meeting the demands of the market.
Profits and losses are a function of price differentials.
Accurate profit and losses require accurate prices.
Prices are denominated in monetary units.
False prices results in false profit and loss signals.
Interest is the price of money.
False interest rates results in false prices.
False profit and loss signals results in misallocations of economic resources.
Booms and busts.
END THE FED!