Capitalism Is Magic: Introduction

I am going to write a regular series of articles themed around My Little Pony: Friendship is Magic.

Yes, I am a brony and proud of it. 

I don't watch much TV, because too often, the themes and messages most TV shows promote do not align with my personal beliefs and moral standard.  However, My Little Pony: Friendship is Magic (MLP:FIM) is one of the most amazing shows I have ever seen and not just for it's compelling story lines and interesting characters, but also because the wholesome message each episode has about friendship and the subtle themes the show presents about how society works and works well.

How this relates to precious metals? 

I believe one highly beneficial attribute (but not necessarily a requirement) to invest in precious metals is an appreciation and desire for genuine capitalism.

To disambiguate a commonly held misconception, the structure of society in the Western world is NOT capitalism.  It is crony corporatism - a system where capitalism is suppressed by institutions with monopolies of violence (the government) and markets (corporations capable of buying out the government and using the government monopoly of violence to maintain their monopoly on the markets).  I cannot emphasize enough - this is NOT capitalism.

When I speak of capitalism, I speak of a system whereby individuals can freely decide what they want to do and how they want do it.  Decisions are all freely made at the individual level, without forceful or fraudulent compulsion from anyone, be they other individuals, corporations, or governments.  

Liability and responsibility of the consequences for one's actions, be they positive or negative, are laid entirely on the individual who committed them.  

Most importantly, all transactions of goods and services are carried out voluntarily using sound means of exchange that are a genuine store of wealth.

When you look at western societies, none of these things are true.

I can't decide to be a salaried employee without facing the compulsion of being fined or imprisoned for not paying income tax.  I can't decide to opt out of publicly funded initiatives like foreign military invasions or social engineering and population control experiments.  

Liability for bad decisions made by irresponsible or unethical governments and corporations are not placed on politicians or CEO's, but instead are placed on me as a taxpaying citizen. 

Most importantly and specifically related to precious metals, almost all transactions are done using diverse, dishonest means (fiat currency) whose fluctuations in purchasing power make them a highly unsound means of exchange and store of wealth.

So what does this have to do with Ponies?

In MLP:FIM, the magic kingdom of Equestria, is a society governed by Princess Celestia, a benevolent winged Unicorn (or horned Pegasus).  The Princess encourages her subjects to be responsible for their own well being without government assistance and to conduct business independently, without excessive regulation, taxation or micromanagement. 

While highly respected and revered, the Princess rarely exercises her authority and never dabbles into the private lives of her subjects, unless a dire threat exists threatening the entire society or she is explicitly asked by her subjects for her help.

In Equestria, a free market system based on supply and demand fundamentals dictates how all commerce is conducted.  Although conflicts exist (even violent ones), interpersonal or inter-societal problems are resolved through extensions of diplomacy at the lowest levels of government, resulting in peace and mutually satisfactory trade arrangements for all parties involved. 

Honest, quality goods and services that have appropriate market demand are rewarded and encouraged through profit.  Dishonest, fraudulent, low quality goods and services with low market demand are penalized as unprofitable, and business practices are voluntarily altered without the threat of violence from government.

Citizens of Equestria pursue their aspirations and work hard to achieve them.  They transact in gold like money that is "earned" through free, fair trade not printed and loaned out by a central bank printing press.  They are rewarded by the market for honesty and excellence and punished by the same market for fraud and mediocrity.

Fans of MLP:FIM regard Equestria as an amazing society they wish they could live in.

On the surface, the biggest reason is that it is portrayed as a society where individuals of radically different personalities and classes peacefully coexist and befriend one another.

In the real world, permanent student Twighlight Sparkle and tree-hugger Fluttershy would be dismissed as unproductive by hard working Apple Jack and without entrepreneurial ambition by business savvy Rarity; who themselves would be viewed as greedy and undeserving of their wealth by working class Pinkie Pie and government employee Rainbow Dash. 

If the mane 6 ponies were people living in a "Western Democracy" they would likely all hate each other and want the government to either forcefully redistribute the property of the wealthy ponies to the poorer ponies, or segregate the poorer ponies into neighborhoods, prisons, or institutions where they are unseen by the wealthier ponies.

Equestria is not like the real world.  In Equestria, liberal, centrist, and conservative all coexist, transact with and are best friends with one another.

This is a consequence of a magic that does not exist in the real world.

That magic is capitalism.