Absolute Austro-Libertarian

A person believing that the maximum amount of freedom, security and prosperity can only be accomplished if all governments are abolished and all relations between people are defined voluntarily

Absolute Libertarianism

An evolution of the Libertarian Theory, believing that governments are not necessary at all to achieve maximum freedom, prosperity and security

Alienable property

Property that can be transferred to a new owner

Anti-competitive practices

Normal free market operations that politicians determine are "bad" for competition

Austrian Economics

An economic theory stating that optimum economic conditions and prosperity can only be achieved through absolutely free markets

Axioms

Short concepts forming the basis of any Scientific Theory. These ideas are accepted as true and cannot be proven

Bank run

A sudden demand from most customers to withdraw all savings from a given bank

Boom Phase

Artificial increase in economic activity due to Central Bank fiat money printing

Bust Phase

Sudden drop in economic activity following a Boom Phase when the economy tries to adapt back to real economic conditions

Capital

The capacity to create production

Capital goods

Things that are necessary to generate products and services for sale, such as buildings and machines

Catallactic competition

It defines a scenario where members of a free market pursue their individual goals, but in so doing, they benefit society as a whole

Central Bank

Government organization counterfeiting money for the government

Civil Disobedience

Displeasure against the systematic and continuous enactment of policies, laws and regulations contrary to our will.  An oxymoron, a contradiction in terms since free people cannot disobey themselves.

Competitive advantage

Central Bank code phrase to indicate currency devaluation

Consumer goods

Goods and services sold to customers or consumed by them

Contract

A voluntary permission given to a party in an agreement to commit infringement against the other party's property

Debasing

The process of removing gold and silver (i.e. the "base" metals) from coins while forcing the people to accept them at "full value" (i.e. as stamped instead of as weighed)

Deflation

Increase of goods or services chasing the same amount of money

Demand

Reluctance of people to exchange their money for goods and services being offered

Deposit Insurance

Organizations set-up by governments to insure bank customers' cash deposits against bank's bankruptcy. Typically these organizations are underfunded and go bankrupt themselves when most needed, triggering Central Bank rescue (i.e. printing) operations which increase inflation

Direct competition

Two similar products competing for the same customer by providing the same function, for example two different brands of dishwashers

Direct Exchange

Also known as bartering or the exchange of goods or services directly between two people (the final users)

Dirty float

The exchange rate of one fiat currency to another fiat currency. So called because neither fiat currency has any fixed relationship with gold.

Division of Labor

People specializing in the production of goods or services with the intention of exchanging them for a benefit

Division of labor

Economic concept stating that in order to achieve maximum profits in a free market, suppliers of goods and services must improve their products over the competition. In order to do that, they must specialize.

Excess reserves

The amount of fiat money that private banks have in their accounts over the minimum required by the Central Bank. This amount is usually slightly above the absolutely minimum.

Exponential growth or increase

A mathematical way to express growth in which growth accelerates all the time. Growth increases faster and faster as time goes by

Fiat money

Fully debased money

Foreign Exchange Market (FOREX)

Market specializing in buying and selling currencies, only made possible because the value of every currency against any other currency is fully subjective and de-coupled from any commodity–based currency (e.g. gold)

Fractional reserve system

It is a Central Banking scam based on creating fiat money out of thin air

Freedoms (Absolute Austro–Libertarian)

All the things we can do (within the constraints of physical laws) when living in isolation from all other people.

Freedoms (standard definition)

Things that we are supposed to be able to do without having to ask permission to a higher authority, granted to us by birth, God or some other ulterior or superior source. This is a theoretical concept since in practice these freedoms are treated as rights.

GDE

Gross Domestic Expenditure: the value of all the stuff and the services people and companies have bought or can potentially buy throughout one year.

GDP

Gross Domestic Product: the value of all the stuff and the services people have bought or can potentially buy throughout one year.

Government Disobedience

The systematic and continuous enactment of policies, laws and regulations contrary to our will by politicians.

Gross Earnings of Your Neighborhood (GEYN)

A similar measure as the GDP but localized. Used for argumentation and comparative purposes.

Homestead principle

A principle stating that ownership of un–owned property can only be achieved by continuously using or working the entire property (i.e. in a manner that provides economic benefit).

Hypothesis

A scientific model that has not yet been proven

Inalienable property

Property that cannot be transferred to a new owner

Indirect competition

This happens to all market products since they compete for customers' money. They offer completely different functions but they are all asking for the same money

Indirect Exchange

Also known as bartering or the exchange of goods or services between two people (the final users) through a third one acting as intermediary

Inflation

Increase in fiat money chasing the same amount of goods

Intangible property

Ideas or information

Interest Rate

The price for borrowing money

Internal Consistency

The characteristic of scientific disciplines to build complex models based only on simple axioms and to re-discover those axioms by decomposing complex models

Justice (principle)

The only principle guiding justice in the Absolute Austro–Libertarian system is the reversion of an in–justice to the original state or as close as possible

Law of Political System Direction

Law specifying that Political Systems evolve towards a simultaneous increase in freedom, security and prosperity

Law of Political System Lifecycle

Law specifying how Political Systems are created, implemented and discarded

Laws of Political System change

Three laws specifying what are the minimum conditions for a Political System change

Leverage

The act of controlling more money than you actually own

Libertarian Theory

A political theory stating that freedom is the most important element in any form of government

License

Official permit to do something that would otherwise be considered either a crime or a civil law infringement.

Linear growth or increase

A mathematical way to express growth in which growth increases at the same pace as time goes by

Liquidity trap or pushing on a string

An economic situation where the economy is in such a crisis that even lowering the interest rate down to zero, there are no companies taking loans.

Market efficiency

A market is efficient when resources are brought in where they are needed, if needed, when needed in the appropriate amounts and at the lowest price. All this is done automatically without the need for any design.

Marriage or Union

A voluntary agreement or contract between parties

Master Contract

Key contract defining the basic axioms of the Absolute Austro-Libertarian Political Theory. Sometimes abbreviated as MC

Mercantilism

Discredited economic theory whose main belief is that in order to be economically successful all a country needs to do is export massively

Modern Democracy

Government from the people, by politicians and for politicians.

Monetizing debt

A process Central Banks use to transform government debt in newly created fiat money

Money (commodity-based)

It is a highly desirable (marketable) commodity used to store value and to exchange this value it when needed for goods or services. It is simply stuff (a commodity) that we all want and use to exchange for other stuff or services.

Money (fiat or non-commodity-based)

Money that was brought into existence by an arbitrary decree, sanction, order or pronouncement

Money Generator

Central Banks (i.e. the capacity to create unlimited amounts of money out of thin air)

Money Multiplier

Is the ratio between the amounts of money created by Central Banks out of thin air and the amount of money commercial Banks are allowed to create out of thin air. Its value is usually 1:10

Money printing

Generic term indicating fiat money creation out of thin air. Typically, it does not mean physical money bill printing, but digital fiat money creation

Money sterilization

Temporary Central Bank operations destined to remove cash from the market with the intention of preventing inflation

Monopolies or Oligopolies

Only or a limited few products exist, offering the same function

Moral Hazard

The tendency from large banks to initiate very large and exceedingly risky operations, in the knowledge that if something goes wrong, they will be rescued by the Central Bank

Political Systems

They are the systems that evolve when Political Theories are placed into practice

Political Theories

A misnomer used to identify Political Hypothesis or an unproven political idea or model as to how a system of government should work

Price (commodity-based)

Is the exchange relationship between goods and services and a highly acceptable (marketable) commodity which we call money. For example, 3 swords are exchanged for one gold coin. So the price of 3 swords is one gold coin. The only difference between value and price is the degree of acceptance of the commodity being used in the exchange. It is a semantic trick to highlight that the exchange process is using "money" and not just any commodity.

Privileges (Absolute Austro–Libertarian)

All the things we are allowed to do because we have received permission from somebody through a voluntary contract.

Privileges (standard definition)

All the things that we are allowed to do because we have received permission from somebody (typically politicians)

Responsibilities (Absolute Austro–Libertarian):

All the things we are obligated to do because we have agreed to them in voluntary contracts.

Responsibilities (standard definition)

All the things that we are told that we must do (typically by politicians)

Rights (Absolute Austro–Libertarian)

All the things we can do (within the constraints of physical laws) and the restrictions we willingly agreed in the Master Contract. Rights are nothing but willingly restricted freedoms.

Rights (standard definition)

All the things we are allowed to do because we have received permission from politicians

Scientific Theory

A proven scientific model

Scientific Truth or Fact

A scientific model is deemed true or fact when the majority of the tests designed to challenge its forecasts confirm them

Social Contract

Theory dealing with the legitimacy of state's authority over the individual

Standards of living

A measure of how many affordable choices we have to make our lives better

Substitute competition

Two dissimilar products attempt to substitute one another in the eyes of a customer, for example Danishes and croissants for breakfast

Supply

Pressure created by all the people trying to sell goods and services

Tangible property

Something that exists in the physical world

Taxation

Government theft supported by the threat of violence

Time preference

People's preference to spend money today and receive instant gratification. It can also be understood as people's conscious decision not to spend today and save with the expectation of future profits

Value (commodity-based)

Is the exchange relationship between goods and services and commodities. For example, one sheep (a commodity) is exchanged for 3 swords. The value of one sheep is then 3 swords.

Voting

Voting is a sustained imposition and deception that accompanies and protects the jobs and privileges of politicians in a modern democratic society.

War

A primitive way to satisfy economic needs.