Tag Archives: Capitalism

Doug Casey on Earth Day

From Casey Research:

L: So, Doug, people around the world just celebrated Earth Day, and I know you have ideas on the subject. Did you ride a bike instead of driving a car that day?

Doug: Well, as you know, I love to drive high-performance cars, but I’m in downtown Buenos Aires now, and don’t have a car here because the taxis are so cheap and convenient. So I used taxis on Earth Day, just like any other day. I don’t bicycle and recycle to save the planet. But I did notice, with a sort of morbid fascination, the observation of Earth Day by many people around me.

It’s amazing to me – though maybe it shouldn’t be – the way Earth Day has caught on among idiots in general. It’s on its way to becoming just as bad news as May Day, which is the creation of the same sort of people. May Day – May 1 – is the Labor Day of most of the world, and it’s basically a Marxist holiday. April 22 is Earth Day. So you have a green Earth Day, followed by a red May Day. They ought to call this time of year “Watermelon Week,” because the so-called Greens are really watermelons: green only on the outside, but red through and through.

L: Can you substantiate that?

Doug: Apart from the fact that there’s about a 95% correlation between Reds and Greens everywhere in the world? Sure: just look at their policy proposals. Mainstream environmentalists never propose any market approaches to improving the environment; they only propose more socialist regulations and government controls. There are a few free-market environmentalists out there, but they are very few and far between. If the movement was all about the environment, there would at least be a mix of policies, constructively looking for whatever works best. But it’s not. In my opinion, concern for the environment is just the latest excuse for the same tired old collectivist/statist thinking that’s been such a disaster for the last hundred years.

Earth Day is nonsense and a bad idea. People of good will should ignore it, and work against government efforts to enshrine it.

L: Okay, but wait a minute. You know I agree that real environmentalism should be about the environment, not advancing a leftist agenda without regard for environmental consequences. But we do live on this one planet, and I don’t like breathing polluted air – and I doubt you like it any better than I do. What’s wrong with celebrating the planet we live on, as well as honest – and voluntary – efforts to keep it clean?

Doug: There’s nothing wrong with that, of course. I like green trees, blue skies, the birds and bunnies and so forth, as much as the next person. But that’s not really what’s going on here. But first, we have to put all of this in perspective…

L: What perspective would that be?

Doug: You have to realize that the earth is just a ball of dirt, circling an insignificant star, lost in an insignificant galaxy among a hundred billion other stars – and our galaxy is itself only one of a hundred billion galaxies, and maybe more, in the known universe. Further, there’s increasing conjecture that our universe is just one out of an infinite number of parallel universes, which may include any number just like ours. So on a cosmic scale, anything we do or don’t do to this planet is completely and absolutely insignificant. Making a religion out of worshiping the planet, and fomenting hysteria about it, strikes me as being cosmically stupid.

L: Literally.

Doug: Yes, literally. The earth has an evolution of its own, and is constantly in the process of changing, regardless of the activities of men – the ice ages, as one tiny example, show how drastic those changes can be. Incidentally, we’re probably just in an interim period between glaciations, from the perspective of geological time. And periodically, other things happen that make human activities pale in significance. The next super volcano, as we talked about in our conversation on global warming, will change the earth’s surface environment tremendously. But maybe the environmental extremists will like that, because it could wipe out most of the human race. And though humans evolved on this planet just like all the other species, these people have it in their heads that humans and everything to do with them is somehow unnatural.

L: Well, maybe not, because such a volcanic event would also wipe out countless entire species of plants and animals.

Doug: You’re right, but some of these people are so virulently anti-human, they might rejoice anyway, and see it as just being a few eggs you have to break to make an omelet. A big asteroid strike could do the same thing. There are plenty of other things that could sweep all these insane – and unnatural – efforts to freeze nature in its present state aside like piles of leaves in a hurricane. My attitude about all this was summed up perfectly by George Carlin in this video. It’s a work of both comic and philosophical genius. I suggest everyone watch it at least once a week, until it sinks in and is grokked in its fullness.

L: Even if there’s no such cataclysm, as you like to say, everything gets folded into the earth’s mantle eventually anyway.

Doug: [Chuckles] That’s right. That is absolutely inevitable – and natural. That should, if only for that reason, appeal to Greens, even though they’re generally innocent of any knowledge of science in general, or geology in particular. But most places won’t be folded into the mantle for many millions of years – or at all, if the sun goes nova first. Meanwhile, if you value human life – which many of these people consciously and explicitly do not – this planet is here strictly for our pleasure. At least until we can find something better.

Save the trees, saves the bees. Save the whales, save the snails…. What about people? The arrogance of these people is at once breathtaking and pitiful. And many come right out and say that they would eliminate all humans if they could, because humans are a disease on the face of Mother Earth – or Gaia, as they call it.

L: I met a young man who said exactly that, once, in Peru. I asked why termites – which destroy every other living thing in an expanding circle around their nests – are superior to humans. And he’s not the only one I’ve met. Somehow, when I suggest that if they think the earth would be better off without humans, they could start helping by removing themselves, none of them ever take action. No, no, it’s other people whose choices they do not approve of who should go first.

Doug: Yes. These are perfectly horrible people who are polluting the intellectual environment on this planet with this new religion. And it is a religion. It has almost no basis in real science, though they like to doll it up in scientific terminology. Greenism is rife with politically motivated pseudoscientific gobbledygook masquerading as scientific research. Rather like Marxism, again – and not coincidentally, in my opinion. Lots of fundamentalist Christians can’t seem to wait for the world to come to an end with the Rapture, and Yahweh only knows how many other apocalyptically scary memes. And many hardcore Muslims are at least as anti-life and fanatical. It seems that everywhere one turns there’s somebody with plans to improve the world – or improve you. Anyone with any sense should want to get off this ball of dirt populated by so many busybody lunatics, and find some place with better vibes. But I fear religion is almost a genetic impulse in mankind; I certainly prefer the company of those who lack that gene. Of course, any time you turn anything into a religion you automatically, and perhaps necessarily, require dogma. Then you get heretics. Then, religious wars.

L: Well, religion has existed for an evolutionarily significant period of time, so in spite of the religious wars and whatnot, I figure it must have some value for its believers. However, having tried to reason with a number of such environmental extremists, I’m inclined to agree with you about them. And the worst part of it is that this intellectual pollution – this Gaia religion dressed up as science – is being deliberately targeted at children, in school, in cartoons, everywhere. It’s bad enough to fill young minds with errors and faulty logic, but they are scaring children, telling them they are doomed because the evil corporations control the governments and will never stop polluting the planet until we’re all dead, and so forth.

Doug: That’s exactly why it’s important to stand up and be counted as being against things like Earth Day, in no uncertain terms. This garbage needs debunking. It’s not enough to say, “Well, it’s a good idea, but it’s misguided in application.” That’s what people said about Marxism, which they said was a nice idea meant to help poor people, when in fact it was one of the most destructive ideas ever hatched for poor people. Especially for poor people. It’s important to look these people right in the eye and tell them they are wrong and doing great harm – don’t give ‘em an inch of moral high ground.

Call a spade a spade. If they are going to talk about treating the human race as a disease and eliminating it, they are talking about mass murder – genocide. That’s the plain truth. These people are psychologically damaged, and dangerous. They should be opposed, unabashedly, and at every opportunity. But that’s the moral argument. Entirely apart from that, I despise them on a visceral level, and find their company revolting. And boring.

L: I’ve run into that argument about Marxism as well. A lot of leftist apologists will say that Marxism was a good idea – or at least a noble one, but that it was not practical, or never had a real chance, because the evil capitalists never gave it one. But it wasn’t a good idea. Marxism might work for ants, but not for humans. Leftist governments of every stripe tried very hard to implement Marxist ideas for many decades, and all we got was a body count in the tens of millions. There is nothing noble about trying to organize a society in a way that’s inconsistent with human nature – and there is such a thing as human nature.

We’re up against something very similar with this earth-worship meme going around. For the true believers, it seems to be much more about being anti-human than about being pro-clean-environment. That’s why you see all sorts of environmental proposals that pay scant heed to large and painful human costs in pursuit of the benefit of every other species on the planet.

Doug: Just so. Mother Earth doesn’t exist, and if she did you’d find her a bad-tempered bitch who couldn’t care less for the carbon-based biological units covering her skin. She’s not a conscious, thinking being. Our planet is just a ball of silicon, carbon, iron, nitrogen, and such. I can hear the Greens now. “Save the beryllium! Save the hydrogen! Don’t save the uranium! We’re not sure about saving the carbon…”

In any event the planet itself has no rights.

Incidentally, I happen to really like most other living things, and want them to live long, happy, and peaceful lives – just on general principles. And I do what I can to see that that happens. But the Greens want to turn the earth into a political issue – which is to say an issue where they can use coercion to boss around their fellow humans. Like all true believers, they suffer from either stupidity – defined as an unwitting tendency to self-destruction – or a psychological aberration.

L: Good point. Rights are a human construct, that have meaning only among people. Actually, if you observe nature, concern for other species is unnatural. To a wolf or a worm or a germ, other things are either food, or not food; threats, or not threats. Any animal, plant, or microorganism on earth – any and every living thing besides humans – will expand as fast and as far as food supply and space allow, without any regard to the consequences for other species.

Humans do consider the well-being of other species, and this is a noble thing unique to us on this planet – but it should be a matter of aesthetics, not ethics, because ethics has no meaning beyond an intelligent species like ours. Giving hikers and bears equal rights only increases the number of hikers who end up inside of bears. Giving the planet rights would make it impossible for any species, from humans to termites, to live at all; we’d never get permission to build houses or nests, because Mother Earth does not speak.

Doug: Agreed. So, even assuming you want to look at it from the perspective of Mother Earth, the only way for things to get better is to let people get wealthier. Humans are not just going to go away. Relatively few of the six billion people here will agree to drink the environmentalist extremists’ Kool-Aid. Most of the most prominent environmentalists are rich hypocrites, driving around in limos, and flying around in private jets – people like Al Gore. And, as you’ve pointed out, people are a natural part of this planet as well. That means you’ve got to find solutions that include humans and motivate them in the right way.

The fact is that the most destructive societies and individuals for the environment are the poorest ones. Rich people don’t generally throw trash on the ground – many poor people do it all the time. The amount of trash blowing in the wind is one obvious way you can see whether a neighborhood is rich or not. The same thing applies to entire societies. From Canada to China, from Germany to Guatemala, the higher the per-capita GDP of any society, the less polluted the country. Poor people are not bad, they just don’t have time to care about such niceties – they are struggling to survive. Wealthier people have the time and the means to clean up their environments, so they do.

L: I see this all the time, as I travel the world looking for potentially profitable mining projects. To me, it seems to be clear evidence for your watermelon hypothesis that so-called environmentalists often accept “artisan” miners – generally poor indigenous people – but go apoplectic at the mention of an international mining company. But these evil companies have to live up to international standards of environmental protection, remediation, and reclamation – and, with a few criminal exceptions, they do. They often go above and beyond the legal requirements, because the people working for the companies actually do care and don’t want to dump toxic substances into rivers, etc.

But the artisan miners, they are worse than termites. They strip all the vegetation in the area for fuel or building material; they dig without regard for worker safety; they use cyanide and mercury to process gold and dump the residues in the creeks and rivers; and they make no effort whatsoever to protect the environment they work in, remedy any harm they do, or reclaim their work sites to a more natural state when they are done. But somehow, this is better to environmental extremists than letting an evil multinational company put a clean, modern mine in.

Doug: It’s true, I’ve seen it too – like that time we went to Bolivia and saw little boys working in the artisan mining camps… In a wealthier society, that wouldn’t happen. Not because of laws, but because kids don’t need to do it just in order to survive. And how do you make a society wealthier? Cut taxes, repeal regulations, and get the government out of the way of entrepreneurs. In short, you don’t actually have to do anything. Just let people create wealth and keep what they create. That will mend more harm than anything else, over time.

L: Okay, so wealth is a great antidote to environmental poison; what else?

Doug: Technology. Pollution can be defined as a waste of resources. It is an economic phenomenon, and lends itself to economic solutions. The more modern and high-tech the industry, the less pollution there tends to be. Looking ahead, micro-manufacturing will eliminate the great industrial slag heaps of the past. Ultimately, when practical nanotechnology arrives, there will be no pollution, because things will be assembled one atom at a time, precisely and with no waste. And anything that does get discarded, or becomes trash, is just more atoms someone can use as raw material for making something new. If you love the earth, but don’t hate humans, there is only one way forward: push for the fastest advance in technology possible.

L: Makes sense to me… anything else people can do, if they want a cleaner environment?

Doug: Embrace reason. So much of what people believe about the environment simply ain’t so, and most of it is pure hysteria – or outright scams. Global warming, as we’ve discussed in the past, is certainly a gigantic scam.

Incidentally, one of the worst things about the global warming scare is its effect on science. After it has been thoroughly debunked – which I’m confident will happen, and sooner rather than later – it may actually serve to discredit science itself. That’s because most people believe the lie that science has shown that anthropogenic global warming is real. I fear people will come to regard scientists as unreliable, and throw the baby out with the bath water.

But there are lots of other nasty aspects of the ongoing Green hysteria. A big one is how it actually wastes resources, even while it’s telling people to conserve them. For instance, the mandate for so-called “green jobs.” Or the drive for biofuels, which is moving a lot of corn production from food to fuel, which is raising food prices, destroying capital, and increasing hunger around the world. Carbon! Carbon, one of the basic elements in all living things, has become an environmental bogeyman. Children are being taught to feel guilty about their “carbon footprints.” All of these things misallocate resources, which is destructive of wealth.

more…

What free-market capitalism is not

It is not about being “connected and protected”:

Thanks to EPJ:

Remembering the Real Ayn Rand

From wsj.com:

By DONALD L. LUSKIN

Tomorrow’s release of the movie version of “Atlas Shrugged” is focusing attention on Ayn Rand’s 1957 opus and the free-market ideas it espouses. Book sales for “Atlas” have always been brisk—and all the more so in the past few years, as actual events have mirrored Rand’s nightmare vision of economic collapse amid massive government expansion. Conservatives are now hailing Rand as a tea party Nostradamus, hence the timing of the movie’s premiere on tax day.

When Rand created the character of Wesley Mouch, it’s as though she was anticipating Barney Frank (D., Mass). Mouch is the economic czar in “Atlas Shrugged” whose every move weakens the economy, which in turn gives him the excuse to demand broader powers. Mr. Frank steered Fannie Mae and Freddie Mac to disaster with mandates for more lending to low-income borrowers. After Fannie and Freddie collapsed under the weight of their subprime mortgage books, Mr. Frank proclaimed last year: “The way to cure that is to give us more authority.” Mouch couldn’t have said it better himself.

But it’s a misreading of “Atlas” to claim that it is simply an antigovernment tract or an uncritical celebration of big business. In fact, the real villain of “Atlas” is a big businessman, railroad CEO James Taggart, whose crony capitalism does more to bring down the economy than all of Mouch’s regulations. With Taggart, Rand was anticipating figures like Angelo Mozilo, the CEO of Countrywide Financial, the subprime lender that proved to be a toxic mortgage factory. Like Taggart, Mr. Mozilo engineered government subsidies for his company in the name of noble-sounding virtues like home ownership for all.

Associated PressAyn Rand in 1962

luskin

luskin

Still, most of the heroes of “Atlas” are big businessmen who are unfairly persecuted by government. The struggle of Rand’s fictional steel magnate Henry Rearden against confiscatory regulation is a perfect anticipation of the antitrust travails of Microsoft CEO Bill Gates. In both cases, the government’s depredations were inspired by behind-the-scenes maneuverings of business rivals. And now Microsoft is maneuvering against Google with an antitrust complaint in the European Union.

The reality is that in Rand’s novel, as in life, self-described capitalists can be the worst enemies of capitalism. But that doesn’t fit in easily with the simple pro-business narrative about Rand now being retailed.

Today, Rand is celebrated among conservatives: Rep. Paul Ryan (R., Wis.) insists that all his staffers read “Atlas Shrugged.” It wasn’t always this way. During Rand’s lifetime—she died in 1982—she was loathed by the mainstream conservative movement.

Rand was a devout atheist, which set her against the movement’s Christian bent. She got off on the wrong foot with the movement’s founder, William F. Buckley Jr., when she introduced herself to him in her thick Russian accent, saying “You are too intelligent to believe in God!” The subsequent review of “Atlas Shrugged” by Whittaker Chambers in Buckley’s “National Review” was nothing short of a smear, and it set the tone for her relationship with the movement ever since—at least until now.

Rand rankled conservatives by living her life as an exemplary feminist, even as she denied it by calling herself a “male chauvinist.” She was the breadwinner throughout her lifelong marriage. The most sharply drawn hero in “Atlas” is the extraordinarily capable female railroad executive Dagny Taggart, who is set in contrast with her boss, her incompetent brother James. She’s the woman who deserves the man’s job but doesn’t have it; he’s the man who has the job but doesn’t deserve it.

Rand was strongly pro-choice, speaking out for abortion rights even before Roe v. Wade. In late middle age, she became enamored of a much younger man and made up her mind to have an affair with him, having duly informed her husband and the younger man’s wife in advance. Conservatives don’t do things like that—or at least they say they don’t.

These weren’t the only times Rand took positions that didn’t ingratiate her to the right. She was an early opponent of the Vietnam war, once saying, “I am against the war in Vietnam and have been for years. . . . In my view we should fight fascism and communism when they come to this country.” During the ’60s she declared, “I am an enemy of racism,” and advised opponents of school busing, “If you object to sending your children to school with black children, you’ll lose for sure because right is on the other side.”

If anything, Rand’s life ought to ingratiate her to the left. An immigrant woman, she arrived alone and penniless in the United States in 1925. Had she shown up today with the same tale, liberals would give her a driver’s license and register her to vote.

But Rand was always impossible to pin down politically. She loathed Dwight Eisenhower, whom she believed lacked conviction. And in 1975 she wrote, “I urge you, as emphatically as I can, not to support the candidacy of Ronald Reagan,” primarily on the grounds that he didn’t support pure laissez-faire capitalism. But she endorsed Richard Nixon in 1968 because he supported abolition of the military draft. Rand was especially proud of her protégé Alan Greenspan for serving with Milton Friedman on Nixon’s Gates Commission, the findings of which led to today’s all-volunteer army.

Rand was not a conservative or a liberal: She was an individualist. “Atlas Shrugged” is, at its heart, a plea for the most fundamental American ideal—the inalienable rights of the individual. On tax day, with our tax dollars going to big government and subsidies for big business, let’s remember it’s the celebration of individualism that has kept “Atlas Shrugged” among the best-selling novels of all time.

Mr. Luskin is chief investment officer at Trend Macrolytics LLC and the co-author with Andrew Greta of “I Am John Galt,” out next month by Wiley & Sons.

There’s No Such Thing as Homemade Ice Cream

By Jeffrey Tucker

In the freezer section of the grocery store, there’s Vanilla Bean, French Vanilla, and yet another vanilla flavor called Homemade Vanilla. Now, come on! I’m in the store here, looking at rows and rows of commercial products produced by a vast capitalistic machinery, a cornucopia of frozen goods made by advanced industrial technologies, made from goods and services that require a global division of labor and a sophisticated trading and price system rooted in private property and replete with entrepreneurial risk at every stage of production.

There’s nothing “homemade” about anything here, and surely everyone knows that. It’s just marketing – not that there’s anything wrong with that.

But it got me thinking. What is real homemade ice cream? Oh, I’ve made it before. It has always struck me that you can’t really make real homemade ice cream with an electric machine. Electricity is so artificial, and if you are going to plug in a machine, in what sense are you actually making the stuff? Pouring ingredients into an electric bucket and waiting isn’t really “making” anything. You might as well let someone else do that and buy it from them. You might as well make a trip to the freezer section of the grocery store.

Nope, homemade must be hand cranked all the way, so the “elbow muscle” does the hard work. And it can be exhausting. You turn and turn and crank and crank and it seems like it will never become thick like ice cream. Then when it finally happens, and you are tired out, the turning gets harder and harder until you have to throw your whole body into it and finally you just can’t turn it anymore. At that point, it is ready to eat.

Is it worth it? That’s a subjective judgment. But consider: how many of the ingredients themselves are homemade? Is the stuff that makes the ice cream really homemade and truly authentic? We’ve already dispensed with the need for an electrical plant in your backyard by settling on the hand-cranked method. This is a great step toward homemade.

But what about the rock salt, a product that seems useful for either breaking up ice on the sidewalk or for making ice cream but not much else? I bought my packet at the store. This is clearly a compromise of the seeming need for autarky in ice-cream production, so what if we made this ourselves?

Wikipedia says that rock salt:

occurs in vast beds of sedimentary evaporite minerals that result from the drying up of enclosed lakes, playas, and seas. Salt beds may be hundreds of meters thick and underlie broad areas. In the United States and Canada extensive underground beds extend from the Appalachian basin of western New York through parts of Ontario and under much of the Michigan Basin. Other deposits are in Ohio, Kansas, New Mexico, Nova Scotia and Saskatchewan. The Khewra salt mine is a massive deposit of rock salt near Islamabad, Pakistan. In the United Kingdom there are three mines, the largest of these is at Winsford in Cheshire producing half a million tonnes on average in six months.

All I can say is, Yikes, I’ve got some travelling to do. And some crews to hire. And then I have the problem of packaging the stuff and shipping it back from Islamabad or Winsford or wherever. But wait, it seems like Morton sells a product that might be the same thing but, in any case, markets itself as Ice Cream Salt, as distinguished from just plain rock salt for driveways and the like. What the difference is, I don’t know. But I’m not taking any chances, so more research on this point is clearly necessary.

Then there’s the problem of milk. I could buy a cow but that’s a lot of upkeep. I understand that you have to milk one of these things regularly whether you are making ice cream or not. And there’s the problem of feed and waste and many other issues. Raising and keeping this animal healthy might turn into a full-time job, with no time left over for making, much less enjoying, ice cream.

Of course you need refrigeration and ice, without which matters are rather hopeless. It took most all of recorded human history to invent the refrigerator, which only became common in American homes in the 1920s and 1930s, and so it is pretty presumptuous for me to assume that I could construct one on my own. Plus, these things run on electricity, and I thought I had dispensed with that in the name of authenticity. So long as I’m using electricity to store the milk and ice, why not just let electricity turn the crank too?

I’m back to plan A: get a generator. I’ll pretend not to notice the problem of making homemade gasoline to power it. After all, I could use a river (need to get one of those) or erect a giant windmill (prepare for dead bird carcasses to litter up the yard), but then there’s no power on windless days. How about a solar-based generator? Break out the Windex (can I make that at home too?). This is getting expensive.

Of course you need eggs, which means chickens, which I wouldn’t entirely rule out, but everyone I know who has tried to raise chickens for eggs eventually throws in the towel. It is a disgusting job, fully of unexpected headaches, like getting rid of varmints and keeping the chickens warm and buying expensive feeds and dealing with filthy critters and chicken coops.

It is doable, provided I wanted to quit my job into order to raise a cow and chickens. But there’s still the problem of sugar and flavor. Sugar can be had in many ways. I could raise bees or sugar cane or extract it from fruit and many others processes, each rather daunting. It would be far easier just to buy some, but then what about authenticity and that important “homemade” aspect of my ice cream?

Now let’s talk about vanilla. Apparently this derives from a bean grown in Mexico and Madagascar, and, says Wikipedia, “extensive labor required to grow the vanilla seed pods.” Now I seem to have bumped up against an impossible problem. I live in neither place, and apparently my climate just can’t do the vanilla-growing thing. Maybe I need a greenhouse. Artificial vanilla would require a chemistry lab out back.

I’ve said nothing about the ice-cream maker itself, which uses stainless-steel gears and a crank. In the whole history of humanity, steel as we know it only became economically viable in the 19th century, and stainless steel is very much a modern invention. It would require vast study for me to even figure out the metallurgical aspects of this. And at the least, I would need a blast furnace out back, and one wonders how the cow, the chickens, the electrical plant, and vanilla-producing greenhouse would fare amidst that.

Once I have the steel I would still need to form it. Then there’s the problem of the wood for the maker too, so I would need to cultivate trees and mill them and somehow shape them into round slats. Already, it would appear that I need a backyard full of stuff from all nations and all times, not to mention the physical impossibility of maintaining all these contraptions without a vast labor force that included engineers from many fields and experts in a huge range of tasks. Bankruptcy would begin even before this operation began.

The division of labor – global and involving thousands and even millions of people – is looking ever better, all beautifully coordinated by the price system and given forward motion by entrepreneurs at every stage, operating in coordination from all parts of the world.

In fact, it is pretty clear that there is no such thing as homemade ice cream, and that we use the phrase only in the most metaphorical sense. Thank goodness. In this case, I’m seeing the point: the store is just the last stop in a huge and extended process that emerged over centuries and requires the involvement of people all over the world.

They can call their vanilla ice cream homemade if they want to. Given what they go through to get us good food at good prices, capitalists have more than earned the right to stretch the language a bit when trying to persuade us to buy their products. We are the beneficiaries of a remarkable system of human cooperation.

Reprinted from Mises.org.

Dr. Hans-Hermann Hoppe on the Impracticality of One-World Government and the Failure of Western-style Democracy

From The Daily Bell:


Dr. Hans-Hermann Hoppe

The Daily Bell is pleased to present an exclusive interview with Dr. Hans-Hermann Hoppe (left).

Introduction: Dr. Hans-Hermann Hoppe, born in 1949 in Peine, West Germany, studied philosophy, sociology, economics, history and statistics at the University of the Saarland, in Saarbruecken, the Johann Wolfgang Goethe University, in Frankfurt am Main, and at the University of Michigan, in Ann Arbor. He received his doctorate (Philosophy, 1974, under Juergen Habermas) and his “Habilitation” degree (Foundations of Sociology and Economics, 1981) both from the Goethe University in Frankfurt.

In 1985 Hoppe moved to New York City to work with Murray N. Rothbard (1926-1995), the most prominent American student of the Austrian economist Ludwig von Mises (1881-1973). In 1986 Hoppe followed Rothbard to the University of Nevada, Las Vegas, where he served as Professor of Economics until his retirement in 2008. After Rothbard’s death, Hoppe also served for many years as editor of the Quarterly Journal of Austrian Economics and of the interdisciplinary Journal for Libertarian Studies. Hoppe is a Distinguished Fellow of the Ludwig von Mises Institute, in Auburn, Alabama, and founder and president of the Property and Freedom Society. He currently lives with his wife Dr. Guelcin Imre, a fellow economist, in Istanbul, Turkey.

Hoppe is the author of eight books – the best known of which is Democracy: The God That Failed – and more than 150 articles in books, scholarly journals and magazines of opinion. As an internationally prominent Austrian School economist and libertarian philosopher, he has lectured all over the world and his writings have been translated into more than twenty languages.

In 2006 Hoppe was awarded the Gary S. Schlarbaum Prize for Lifetime Achievement in the Cause of Liberty, and in 2009 he received the Franz Cuhel Memorial Prize from the University of Economics in Prague. At the occasion of his 60th birthday, in 2009, a Festschrift was published in his honor: Joerg Guido Huelsmann & Stephan Kinsella (eds.), “Property, Freedom and Society. Essays in Honor of Hans-Hermann Hoppe.” Hoppe’s personal website is www.HansHoppe.com. There the bulk of his scholarly and popular writings as well as many public lecture recordings are electronically available.

Daily Bell: Please answer these questions as our readers were not already aware of your fine work and considered opinions. Let’s jump right in. Why is democracy “The God that failed?”

Dr. Hans-Hermann Hoppe: The traditional, pre-modern state-form is that of a (absolute) monarchy. The democratic movement was directed against kings and the classes of hereditary nobles. Monarchy was criticized as being incompatible with the basic principle of the “equality before the law.” It rested on privilege and was unfair and exploitative. Democracy was supposed to be the way out. In opening participation and entry into state-government to everyone on equal terms, so the advocates of democracy claimed, equality before the law would become reality and true freedom would reign. But this is all a big error.

True, under democracy everyone can become king, so to speak, not only a privileged circle of people. Thus, in a democracy no personal privileges exist. However, functional privileges and privileged functions exist. Public officials, if they act in an official capacity, are governed and protected by “public law” and thereby occupy a privileged position vis-à-vis persons acting under the mere authority of “private law.” In particular, public officials are permitted to finance or subsidize their own activities through taxes. That is, they are permitted to engage in, and live off, what in private dealings between private law subjects is prohibited and considered “theft” and “stolen loot.” Thus, privilege and legal discrimination – and the distinction between rulers and subjects – will not disappear under democracy.

Even worse: Under monarchy, the distinction between rulers and ruled is clear. I know, for instance, that I will never become king, and because of that I will tend to resist the king’s attempts to raise taxes. Under democracy, the distinction between rulers and ruled becomes blurred. The illusion can arise “that we all rule ourselves,” and the resistance against increased taxation is accordingly diminished. I might end up on the receiving end: as a tax-recipient rather than a tax-payer, and thus view taxation more favorably.

And moreover: As a hereditary monopolist, a king regards the territory and the people under his rule as his personal property and engages in the monopolistic exploitation of this “property.” Under democracy, monopoly and monopolistic exploitation do not disappear. Rather, what happens is this: instead of a king and a nobility who regard the country as their private property, a temporary and interchangeable caretaker is put in monopolistic charge of the country. The caretaker does not own the country, but as long as he is in office he is permitted to use it to his and his protégés’ advantage. He owns its current use – usufruct – but not its capital stock. This does not eliminate exploitation. To the contrary, it makes exploitation less calculating and carried out with little or no regard to the capital stock. Exploitation becomes shortsighted and capital consumption will be systematically promoted.

Daily Bell: If democracy has failed what would you put in its place? What is the ideal society? Anarcho-capitalism?

Dr. Hans-Hermann Hoppe: I prefer the term “private law society.” In a private law society every individual and institution is subject to one and the same set of laws. No public law granting privileges to specific persons or functions exists in this society. There is only private law (and private property), equally applicable to each and everyone. No one is permitted to acquire property by means other than through original appropriation of previously un-owned things, through production, or through voluntary exchange, and no one possesses a privilege to tax and expropriate. Moreover, no one is permitted to prohibit anyone else from using his property in order to enter any line of production he wishes and compete against whomever he pleases.

Daily Bell: How would law and order be provided in this society? How would your ideal justice system work?

Dr. Hans-Hermann Hoppe: In a private law society the production of law and order – of security – would be undertaken by freely financed individuals and agencies competing for a voluntarily paying (or not-paying) clientele – just as the production of all other goods and services. How this system would work can be best understood in contrast to the workings of the present, all-too-familiar statist system. If one wanted to summarize in one word the decisive difference – and advantage – of a competitive security industry as compared to the current statist practice, it would be: contract.

The state operates in a legal vacuum. There exists no contract between the state and its citizens. It is not contractually fixed, what is actually owned by whom, and what, accordingly, is to be protected. It is not fixed, what service the state is to provide, what is to happen if the state fails in its duty, nor what the price is that the “customer” of such “service” must pay. Rather, the state unilaterally fixes the rules of the game and can change them, per legislation, during the game. Obviously, such behavior is inconceivable for freely financed security providers. Just imagine a security provider, whether police, insurer or arbitrator, whose offer consisted in something like this: I will not contractually guarantee you anything. I will not tell you what I oblige myself to do if, according to your opinion, I do not fulfill my service to you – but in any case, I reserve the right to unilaterally determine the price that you must pay me for such undefined service. Any such security provider would immediately disappear from the market due to a complete lack of customers.

Each private, freely financed security producer must instead offer its prospective clients a contract. And these contracts must, in order to appear acceptable to voluntarily paying consumers, contain clear property descriptions as well as clearly defined mutual services and obligations. Each party to a contract, for the duration or until the fulfillment of the contract, would be bound by its terms and conditions; and every change of terms or conditions would require the unanimous consent of all parties concerned.

Specifically, in order to appear acceptable to security buyers, these contracts must contain provisions about what will be done in the case of a conflict or dispute between the protector or insurer and his own protected or insured clients as well as in the case of a conflict between different protectors or insurers and their respective clients. And in this regard only one mutually agreeable solution exists: in these cases the conflicting parties contractually agree to arbitration by a mutually trusted but independent third party. And as for this third party: it, too, is freely financed and stands in competition with other arbitrators or arbitration agencies. Its clients, i.e., the insurers and the insured, expect of it, that it come up with a verdict that is recognized as fair and just by all sides. Only arbitrators capable of forming such judgments will succeed in the arbitration market. Arbitrators incapable of this and viewed as biased or partial will disappear from the market.

Daily Bell: Are you denying, then, that we need the state to defend us?

Dr. Hans-Hermann Hoppe: Indeed. The state does not defend us; rather, the state aggresses against us and it uses our confiscated property to defend itself. The standard definition of the state is this: the state is an agency characterized by two unique, logically connected features. First, the state is an agency that exercises a territorial monopoly of ultimate decision-making. That is, the state is the ultimate arbiter and judge in every case of conflict, including conflicts involving itself and its agents. There is no appeal above and beyond the state. Second, the state is an agency that exercises a territorial monopoly of taxation. That is, it is an agency that can unilaterally fix the price that its subjects must pay for the state’s service as ultimate judge. Based on this institutional set-up you can safely predict the consequences. First, instead of preventing and resolving conflict, a monopolist of ultimate decision-making will cause and provoke conflict in order to settle it to its own advantage. That is, the state does not recognize and protect existing law, but it perverts law through legislation. Contradiction number one: the state is a law-breaking law protector. Second, instead of defending and protecting anyone or anything, a monopolist of taxation will invariably strive to maximize his expenditures on protection and at the same time minimize the actual production of protection. The more money the state can spend and the less it must work for this money, the better off it is. Contradiction number two: the state is an expropriating property protector.

Daily Bell: Are there any good laws and regulations?

Dr. Hans-Hermann Hoppe: Yes. There are a few, simple good laws that almost everyone intuitively recognizes and acknowledges and that can also be demonstrated to be “true” and “good” laws. First: If there were no interpersonal conflicts and we all lived in perfect harmony there would be no need for any law or norm. It is the purpose of laws or norms to help avoid otherwise unavoidable conflict. Only laws that achieve this can be called good laws. A law that generates conflict rather than help avoid it is contrary to the purpose of laws, i.e., bad, dysfunctional or perverted law.

Second: Conflicts are possible only if and insofar as goods are scarce. People clash, because they want to use one and the same good in different, incompatible ways. Either I win and get my way or you win and get your way. We cannot both be “winners.” In the case of scarce goods, then, we need rules or laws helping us decide between rival, conflicting claims. In contrast, goods that are “free,” i.e., goods that exist in superabundance, that are inexhaustible or infinitely re-producible, are not and cannot be a source of conflict. Whenever I use a non-scarce good it does not in the slightest diminish the supply of this good available to you. I can do with it what I want and you can do with it what you want at the same time. There is no loser. We are both winners; and hence, as far as non-scarce goods are concerned, there is never any need for laws.

Third: All conflict concerning scarce goods, then, can be avoided if only every good is privately owned, i.e., exclusively controlled by one specified individual(s) rather than another, and it is always clear which thing is owned, and by whom, and which is not. And in order to avoid all possible conflict from the beginning of mankind on, it is only necessary to have a rule regulating the first, original appropriation of previously un-owned, nature-given goods as private property. In sum then, there are essentially three “good laws” that assure conflict-free interaction or “eternal peace:” a) he who first appropriates something previously on-owned is its exclusive owner (as the first appropriator he cannot have come into conflict with anyone else as everyone else appeared on the scene only later); b) he who produces something with his body and homesteaded goods is owner of his product, provided he does not thereby damage the physical integrity of others’ property; and c) he who acquires something from a previous or earlier owner by means of voluntary exchange, i.e., an exchange that is deemed mutually beneficial, is its owner.

Daily Bell: How, then, does one define freedom? As the absence of state coercion?

Dr. Hans-Hermann Hoppe: A society is free, if every person is recognized as the exclusive owner of his own (scarce) physical body, if everyone is free to appropriate or “homestead” previously un-owned things as private property, if everyone is free to use his body and his homesteaded goods to produce whatever he wants to produce (without thereby damaging the physical integrity of other peoples’ property), and if everyone is free to contract with others regarding their respective properties in any way deemed mutually beneficial. Any interference with this constitutes an act of aggression, and a society is un-free to the extent of such aggressions.

Daily Bell: Where do you stand on copyright? Do you believe that intellectual property doesn’t exist as Kinsella has proposed?

Dr. Hans-Hermann Hoppe: I agree with my friend Kinsella, that the idea of intellectual property rights is not just wrong and confused but dangerous. And I have already touched upon why this is so. Ideas – recipes, formulas, statements, arguments, algorithms, theorems, melodies, patterns, rhythms, images, etc. – are certainly goods (insofar as they are good, not bad, recipes, etc.), but they are not scarce goods. Once thought and expressed, they are free, inexhaustible goods. I whistle a melody or write down a poem, you hear the melody or read the poem and reproduce or copy it. In doing so you have not taken anything away from me. I can whistle and write as before. In fact, the entire world can copy me and yet nothing is taken from me. (If I didn’t want anyone to copy my ideas I only have to keep them to myself and never express them.)

Now imagine I had been granted a property right in my melody or poem such that I could prohibit you from copying it or demanding a royalty from you if you do. First: Doesn’t that imply, absurdly, that I, in turn, must pay royalties to the person (or his heirs) who invented whistling and writing, and further on to those, who invented sound-making and language, and so on? Second: In preventing you from or making you pay for whistling my melody or reciting my poem, I am actually made a (partial) owner of you: of your physical body, your vocal chords, your paper, your pencil, etc. because you did not use anything but your own property when you copied me. If you can no longer copy me, then, this means that I, the intellectual property owner, have expropriated you and your “real” property. Which shows: intellectual property rights and real property rights are incompatible, and the promotion of intellectual property must be seen as a most dangerous attack on the idea of “real” property (in scarce goods).

Daily Bell: We have suggested that if people want to enforce generational copyright that they do so on their own, taking on the expense and attempting through various means to confront copyright violators with their own resources. This would put the onus of enforcement on the pocket book of the individual. Is this a viable solution – to let the market itself decide these issues?

Dr. Hans-Hermann Hoppe: That would go a long way in the right direction. Better still: more and more courts in more and more countries, especially countries outside the orbit of the US dominated Western government cartel, would make it clear that they don’t hear cases of copyright and patent violations any longer and regard such complaints as a ruse of big Western government-connected firms, such as pharmaceutical companies, for instance, to enrich themselves at the expense of other people.

Daily Bell: What do you think of Ragnar Redbeard’s Might Is Right?

Dr. Hans-Hermann Hoppe: You can give two very different interpretations to this statement. I see no difficulty with the first one. It is: I know the difference between “might” and “right” and, as a matter of empirical fact, might is in fact frequently right. Most if not all of “public law,” for instance, is might masquerading as right. The second interpretation is: I don’t know the difference between “might” and “right,” because there is no difference. Might is right and right is might. This interpretation is self-contradictory. Because if you wanted to defend this statement as a true statement in an argument with someone else you are in fact recognizing your opponent’s property right in his own body. You do not aggress against him in order to bring him to the correct insight. You allow him to come to the correct insight on his own. That is, you admit, at least implicitly, that you do know the difference between right and wrong. Otherwise there would be no purpose in arguing. The same, incidentally, is true for Hobbes’ famous dictum that one man is another man’s wolf. In claiming this statement to be true, you actually prove it to be false.

Daily Bell: It has been suggested that the only way to reorganize society is via a return to the clans and tribes that characterized homo-sapiens communities for tens of thousands of years? Is it possible that as part of this devolution, clan or tribal justice could be re-emphasized?

Dr. Hans-Hermann Hoppe: I don’t think that we, in the Western world, can go back to clans and tribes. The modern, democratic state has destroyed clans and tribes and their hierarchical structures, because they stood in the way of the state’s drive toward absolute power. With clans and tribes gone, we must try it with the model of a private law society that I have described. But wherever traditional, hierarchical clan and tribe structures still exist, they should be supported and attempts to “modernize” “archaic” justice systems along Western lines should be viewed with utmost suspicion.

Daily Bell: You have also written extensively on money and monetary affairs. Is a gold standard necessary for a free society?

Dr. Hans-Hermann Hoppe: in a free society, the market would produce money, as all other goods and services. There would be no such thing as money in a world that was perfectly certain and predictable. But in a world with unpredictable contingencies people come to value goods also on account of their marketability or salability, i.e., as media of exchange. And since a more easily and widely salable good is preferable to a less easily and widely salable good as a medium of exchange, there is an inevitable tendency in the market for a single commodity to finally emerge that differs from all others in being the most easily and widely salable commodity of all. This commodity is called money. As the most easily salable good of all it provides its owner with the best humanly possible protection against uncertainty in that it can be employed for the instant satisfaction of the widest range of possible needs. Economic theory has nothing to say as to what commodity will acquire the status of money. Historically, it happened to be gold. But if the physical make-up of our world would have been different or is to become different from what it is now, some other commodity would have become or might become money. The market will decide. In any case, there is no need for government to get involved in any of this. The market has provided and will provide some money-commodity, and the production of that commodity, whatever it is, is subject to the same forces of supply and demand as the production of everything else.

Daily Bell: How about the free-banking paradigm? Is private fractional banking ever to be tolerated or is it a crime? Who is to put people in jail for private fractional banking?

Dr. Hans-Hermann Hoppe: Assume gold is money. In a free society you have free competition in gold-mining, you have free competition in gold-minting, and you have freely competing banks. The banks offer various financial services: of money safekeeping, clearing services, and the service of mediating between savers and borrower-investors. Each bank issues its own brand of “notes” or “certificates” documenting the various transactions and resulting contractual relations between bank and client. These bank-notes are freely tradable. So far so good. Controversial among free bankers is only the status of fractional reserve deposit banking and bank notes. Let’s say A deposits 10 ounces of gold with a bank and receives a note (a money substitute) redeemable at par on demand. Based on A’s deposit, then, the bank makes a loan to C of 9 ounces of gold and issues a note to this effect, again redeemable at par on demand.

Should this be permitted? I don’t think so. For there are now two people, A and C, who are the exclusive owner of one and the same quantity of money. A logical impossibility. Or put differently, there are only 10 ounces of gold, but A is given title to 10 ounces and C holds title to 9 ounces. That is, there are more property titles than there is property. Obviously this constitutes fraud, and in all areas except money, courts have also considered such a practice fraud and punished the offenders. On the other hand, there is no problem if the bank tells A that it will pay interest on his deposit, invest it, for instance, in a money market mutual fund made up of highly liquid short-term financial papers, and make its best efforts to redeem A’s shares in that investment fund on demand in a fixed quantity of money. Such shares may well be very popular and many people may put their money into them instead of into regular deposit accounts. But as shares of investment funds they would never function as money. They would never be the most easily and widely saleable commodity of all.

Daily Bell: Where do you stand on the current central banking paradigm? Is central banking as it is currently constituted the central disaster of our time?

Dr. Hans-Hermann Hoppe: Central banks are certainly one of the greatest mischief-makers of our time. They, and in particular the FED, have been responsible for destroying the gold standard, which has always been an obstacle to inflationary policies, and replacing it, since 1971, with a pure paper money standard (fiat money). Since then, central banks can create money virtually out of thin air. More paper money cannot make a society richer, of course, – it is just more printed-paper. Otherwise, why is it that there are still poor countries and poor people around? But more money makes its monopolistic producer (the central bank) and its earliest recipients (the government and big, government-connected banks and their major clients) richer at the expense of making the money’s late and latest receivers poorer.

Thanks to the central bank’s unlimited money printing power, governments can run ever higher budget deficits and pile up ever more debt to finance otherwise impossible wars, hot and cold, abroad and at home, and engage in an endless stream of otherwise unthinkable boondoggles and adventures. Thanks to the central bank, most “monetary experts” and “leading macro-economists” can, by putting them on the payroll, be turned into government propagandists “explaining,” like alchemists, how stones (paper) can be turned into bread (wealth). Thanks to the central bank, interest rates can be artificially lowered all the way down to zero, channeling credit into less and least credit-worthy projects and hands (and crowding out worthy projects and hands), and causing ever greater investment bubble-booms, followed by ever more spectacular busts. And thanks to the central bank, we are confronted with a dramatically increasing threat of an impending hyperinflation when the chicken finally come home to roost and the piper must be paid.

Daily Bell: We have often pointed out that the Seven Hills of Rome were initially independent societies just like the Italian city-states during the Renaissance and the 13 colonies of the US Republic. It seems great empires start as individual communities where people can leave one community if they are oppressed and go nearby to start afresh. What is the driving force behind this process of centralization? What are the building blocks of Empire?

Dr. Hans-Hermann Hoppe: All states must begin small. That makes it easy for people to run away. Yet states are by nature aggressive, as I have already explained. They can externalize the cost of aggression onto others, i.e., hapless tax-payers. They don’t like to see productive people run away and try to capture them by expanding their territory. The more productive people the state controls, the better off it will be. In this expansionist desire, they run into opposition by other states. There can be only one monopolist of ultimate jurisdiction and taxation in any given territory. That is, the competition between different states is eliminative. Either A wins and controls a territory, or B. Who wins? At least in the long run, that state will win – and take over another’s territory or establish hegemony over it and force it to pay tribute – that can parasitically draw on the comparatively more productive economy. That is, other things being the same, internally more “liberal” states (in the classic European sense of “liberal”) will tend to win over less “liberal,” i.e., illiberal or oppressive states.

Looking only at modern history, we can so explain first the rise of liberal Great Britain to the rank of the foremost world Empire and then, subsequently, that of the liberal US. And we can understand a seeming paradox: why it is, that internally liberal imperial powers like the US tend to be more aggressive and belligerent in their foreign policy than internally oppressive powers, such as the former Soviet Union. The liberal US Empire was sure to win with its foreign wars and military adventures, while the oppressive Soviet Union was afraid that it might lose.

But Empire building also bears the seeds of its own destruction. The closer a state comes to the ultimate goal of world domination and one-world government, the less reason is there to maintain its internal liberalism and do instead what all states are inclined to do anyway, i.e., to crack down and increase their exploitation of whatever productive people are still left. Consequently, with no additional tributaries available and domestic productivity stagnating or falling, the Empire’s internal policies of bread and circuses can no longer be maintained. Economic crisis hits, and an impending economic meltdown will stimulate decentralizing tendencies, separatist and secessionist movements, and lead to the break-up of Empire. We have seen this happen with Great Britain, and we are seeing it now, with the US and its Empire apparently on its last leg.

There is also an important monetary side to this process. The dominant Empire typically provides the leading international reserve currency, first Britain with the pound sterling and then the US with the dollar. With the dollar used as reserve currency by foreign central banks, the US can run a permanent “deficit without tears.” That is, the US must not pay for its steady excesses of imports over exports, as it is normal between “equal” partners, in having to ship increasingly more exports abroad (exports paying for imports). Rather: Instead of using their export earnings to buy American goods for domestic consumption, foreign governments and their central banks, as a sign of their vassal status vis-à-vis a dominant US, use their paper dollar reserves to buy up US government bonds to help Americans to continue consuming beyond their means.

I do not know enough about China to understand why it is using its huge dollar reserves to buy up US government bonds. After all, China is not supposed to be a part of the US Empire. Maybe its rulers have read too many American economics textbooks and now believe in alchemy, too. But if only China would dump its US treasuries and accumulate gold reserves instead, that would be the end of the US Empire and the dollar as we know it.

Daily Bell: Is it possible that a shadow of impossibly wealthy families located in the City of London is partially responsible for all this? Do these families and their enablers seek world government by elites? Is it a conspiracy? Do you see the world in these terms: as a struggle between the centralizing impulses of elites and the more democratic impulses of the rest of society?

Dr. Hans-Hermann Hoppe: I’m not sure if conspiracy is still the right word, because in the meantime, thanks to people such as Carroll Quigley, for instance, much is known about what is going on. In any case, it is certainly true that there are such impossibly rich families, sitting in London, New York City, Tel Aviv and elsewhere, who have recognized the immense potential for personal enrichment in the process of State- and Empire-building. The heads of big banking houses played a key role in the founding of the FED, because they realized that central banking would allow their own banks to inflate and expand credit on top of money and credit created by the central bank, and that a “lender of last resort” was instrumental in allowing them to reap private profits as long as things would go well and to socialize costs if they wouldn’t.

They realized that the classical gold standard stood as a natural impediment to inflation and credit expansion, and so they helped set up first a phony gold standard (the gold exchange standard) and then, after 1971, a pure fiat money regime. They realized that a system of freely fluctuating national fiat currencies was still imperfect as far as inflationist desires are concerned, in that the supremacy of the dollar could be threatened by other, competing currencies such as a strong German Mark, for instance; and in order to reduce and weaken this competition they supported “monetary integration” schemes such as the creation of a European Central Bank (ECB) and the Euro.

And they realized that their ultimate dream of unlimited counterfeiting power would come true, if only they succeeded in creating a US dominated world central bank issuing a world paper currency such as the bancor or the phoenix; and so they helped set up and finance a multitude of organizations such as the Council on Foreign Relations, the Trilateral Commission, the Bilderberg Group, etc., that promote this goal. As well, leading industrialists recognized the tremendous profits to be made from state-granted monopolies, from state-subsidies, and from exclusive cost-plus contracts in freeing or shielding them from competition, and so they, too, have allied themselves to and “infiltrated” the state.

There are “accidents” in history, and there are carefully planned actions that bring about consequences which are unintended and unanticipated. But history is not just a sequence of accidents and surprises. Most of it is designed and intended. Not by common folks, of course, but by the power elites in control of the state apparatus. If one wants to prevent history from running its present, foreseeable course to unprecedented economic disaster, then, it is indeed imperative to arouse public indignation by exposing, relentlessly, the evil motives and machinations of these power elites, not just of those working within the state apparatus, but in particular also of those staying outside, behind the scenes and pulling the strings.

Daily Bell: It has been our contention that just as the Gutenberg press blew up existing social structures in its day, so the Internet is doing that today. We believe the Internet may be ushering in a new Renaissance after the Dark Age of the 20th century. Agree? Disagree?

Dr. Hans-Hermann Hoppe: It is certainly true that both inventions revolutionized society and greatly improved our lives. It is difficult to imagine what it would be to go back to the pre-internet age or the pre-Gutenberg era. I am skeptical, however, if technological revolutions in and of themselves also bring about moral progress and an advance toward greater freedom. I am more inclined to think that technology and technological advances are “neutral” in this regard. The Internet can be used to unearth and spread the truth as much as to spread lies and confusion. It has given us unheard of possibilities to evade and undermine our enemy the state, but it has also given the state unheard of possibilities of spying on us and ruining us. We are richer today, with the Internet, than we were, let’s say, in 1900, without it (and we are richer not because of the state but in spite of it). But I would emphatically deny that we are freer today than we were in 1900. Quite to the contrary.

Daily Bell: Any final thoughts? Can you tell us what you are working on now? Any books or websites you would like to recommend?

Dr. Hans-Hermann Hoppe: I once deviated from my principle not to speak about my work until it was done. I have regretted this deviation. It was a mistake that I won’t repeat. As for books, I recommend above all reading the major works of my two masters, Ludwig von Mises and Murray Rothbard, not just once, but repeatedly from time to time. Their work is still unsurpassed and will remain so for a long time to come. As for websites, I go most regularly to mises.org and to lewrockwell.com. As for other sites: I have been called an extremist, a reactionary, a revisionist, an elitist, a supremacist, a racist, a homophobe, an anti-Semite, a right-winger, a theocrat, a godless cynic, a fascist and, of course, a must for every German, a Nazi. So, it should be expected that I have a foible for politically “incorrect” sites that every “modern,” “decent,” “civilized,” “tolerant,” and “enlightened” man is supposed to ignore and avoid.

Daily Bell: Thank you for your time in answering these questions. It has been a special honor to address them to you in the context of your remarkable work.

Dr. Hans-Hermann Hoppe: You’re welcome.

Voting is Evil – Christine Smith

From the web:

 

Gold as the Silent Witness

Dan Norcini writes:

I wanted to post some brief comments to let some of the newer readers understand why many of us believe that there is a war being waged upon gold by the Central Banks of the West.

Let me start this off by quoting from none other than former Fed Chairman Alan Greenspan more than 40 years ago:

In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. … This is the shabby secret of the welfare statists’ tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists’ antagonism toward the gold standard

What the former Fed Chairman was then saying was that absent a gold standard or some device for restraining the unlimited creation of fiat money, there was nothing to impede monetary officials from engaging in such activity to the extent that it would ultimately set in motion a process of inflation, which is really just another name for the erosion of the purchasing power of a nation’s currency by debasing it. Inflation was and is in essence, the transfer of wealth from one class to another.

Today we have the Fed engaging in the very process that Greenspan warned against back then. We also have the BOJ and the ECB effectively doing the same thing to an extent.

Unlike Silver, Gold is the main metal that most analysts and commentators look to when attempting to decipher whether or not inflation is a serious problem. That means the reference point of gold has become a target for Central Banks which want the world to believe that they can create unlimited amounts of funny money with absolutely ZERO impact on inflation levels. In other words, that they can conjure up wealth and produce prosperity with the electronic equivalent of a printing press and produce no serious inflationary impact by so doing.

A rising gold debunks their hubristic assertions to the contrary for it stands as a silent witness testifying against them. This is the reason the yellow metal is despised by so many Central Banks. It mocks their policies and displays their folly for all the world to see. Central Bankers, being the demigods that they are, will tolerate no rivals to their claims of economic omniscience. You see they have actually come to believe that it is their own wisdom and foresight which enables them to see through the fog that hinders and impedes our economic progress and that they are in a unique position to provide the rest of us with lasting prosperity. They attempt to do this by basically providing or withdrawing liquidity as they in their wisdom judge best and by the setting or manipulation of interest rates.

Those of us who believe that it is free market capitalism and the industry and efforts of mankind that produce wealth and prosperity would beg to differ but that is another story altogether. I would add that it is my opinion that the world would be better off without this plague of locusts that actually devour a nation’s wealth but the fact is that they are here.

While they are here gold will attempt to move in such a manner that it either blesses or curses their policies. Now we all would love to have our policies approved by the vote of the market but what about those times in which the market frowns on our course of action and refuses to smile upon it? Why this is but a simple matter – attack the messenger! If one can somehow manage to keep the price of gold under wrap so that it does not move sharply higher then one can attempt to make the claim that inflation is not a serious problem. The comments usually go something like this:

“Well Jerry, we are looking at the gold price and from what we can see, that while it is definitely higher, it is not soaring out of control. The market may be pricing in some gradual inflation but the action in the gold price is telling us that any fears of inflation getting out of control are definitely unwarranted. Besides, we all agree that some inflation is a good thing because the alternative is deflation and no one wants to see that”.

Imagine Fed Chairman Ben Bernanke testifying before Congress saying that the current rise in prices of many goods is only “temporary” and “relatively modest” if the gold price were soaring beyond $1650 and higher! Do you think anyone would take anything that the Chairman said seriously? Copper can soar higher and most will not notice it. Even if it does, it is generally explained as a positive because we are told it is a sign of strong economic growth ahead. Crude oil and energy prices can rocket higher and that can be attributed to geopolitical unrest among oil producing nations. Food can rise sharply and everyone notices that but such things are often explained away by citing weather conditions, supply constraints, etc. but a rising gold price? How does one explain that away?

The only reason that gold has a sustained price rise is because of a lack of confidence in the monetary system. It does not rise sharply because of such things as jewelry demand or industrial demand – it rises when fear, distrust, doubt, suspicion and uncertainty over Central Bank policy reigns. It rises when REAL interest rates are negative and investors understand the insidious process of currency debauchment practiced by these monetary authorities is underway. It thus cries aloud and issues a warning to those who can hear it and what it shouts displeases many Central Bankers because they are among those who while they despise its message, are all too keenly able to hear that message.

Thus the messenger, the prophet, the oracle, must be silenced or at the very least, his message blunted, toned down, marginalized, trivialized by whatever means possible. The mechanism employed to do just this is a subject for another time and place. Suffice it to say for now, without the efforts by the monetary officials of the West to discredit gold, it would be trading considerably higher. Even at that however, the ancient metal of kings refuses to go quietly and docilely into the night. It will yet have the final say.

What Friends of Freedom Can Learn from the Socialists — To Win Freedom! by Richard M. Ebeling

Richard Ebeling writes:

On March 14, 1883, a German philosopher living in exile in London passed away. When he was buried three days later in a modest grave where his wife had been laid to rest two years earlier, fewer than ten people were present, half of them family members. His closest friend spoke at the grave-site and said, “Soon the world will feel the void left by the passing of this Titan.” But there was, in fact, little reason to think that the deceased man or his long, turgid, and often obscure writings would leave any lasting impression on the world of ideas or on the course of human events.

That man was Karl Marx.

Advocates of liberty often suffer bouts of despair. How can the cause of freedom ever triumph in a world so dominated by interventionist and welfare-statist ideas? Governments often give lip service to the benefits of free markets and the sanctity of personal and civil liberties. In practice, however, those same governments continue to encroach on individual freedom, restrict and regulate the world of commerce and industry, and redistribute the wealth of society to those with political power and influence. The cause of freedom seems to be a lost cause, with merely temporary rear-guard successes against the continuing growth of government.

What friends of freedom need to remember is that trends can change, that they have in the past and will again in the future. If this seems far-fetched, place yourself in the position of a socialist at the time that Marx died in 1883, and imagine that you are an honest and sincere advocate of socialism. As a socialist, you live in a world that is predominately classical liberal and free market, with governments in general only intervening in minimal ways in commercial affairs. Most people—including those in the “working class”—believe that it is not the responsibility of the state to redistribute wealth or nationalize industry and agriculture, and are suspicious of government paternalism.

How could socialism ever be victorious in such a world so fully dominated by the “capitalist” mindset? Even “the workers” don’t understand the evils of capitalism and the benefits of a socialist future! Such a sincere socialist could only hope that Marx was right and that socialism would have to come—someday—due to inescapable “laws of history.”

Yet within 30 years the socialist idea came to dominate the world. By World War I the notion of paternalistic government had captured the minds of intellectuals and was gaining increasing support among the general population. Welfare-statist interventionism was replacing the earlier relatively free-market environment.

The socialist ideal of government planning was put into effect as part of the wartime policies of the belligerent powers beginning in 1914, and also lead to the communist revolution in Russia in 1917, the rise to power of fascism in Italy in 1922, the triumph of National Socialism (Nazism) in Germany in 1933, and the implementation of FDR’s New Deal policies in 1933, as well.

Socialism triumphed during that earlier period of the last decades of the 19th and early decades of the 20th centuries because while socialists advocated collectivism, they practiced a politics of individualism. They understood that “history” would not move in their direction unless they changed popular opinion. And implicitly they understood that this meant changing the minds of millions of individual people.

So they went out and spoke and debated with their friends and neighbors. They contributed to public lectures and the publishing of pamphlets and books. They founded newspapers and magazines, and distributed them to anyone who would be willing to read them. They understood that the world ultimately changes one mind at a time—in spite of their emphasis on “social classes,” group interests, and national conflicts

They overcame the prevailing public opinion, defeated powerful special interests, and never lost sight of their long-term goal of the socialist society to come, which was the motivation and the compass for all their actions.

The Lessons for Freedom

What do friends of freedom have to learn from the successes of our socialist opponents? First, we must fully believe in the moral and practical superiority of freedom and the free market over all forms of collectivism. We must be neither embarrassed nor intimidated by the arguments of the collectivists, interventionists, and welfare statists. Once any compromise is made in the case for freedom, the opponents of liberty will have attained the high ground and will set the terms of the debate.

Freedom advocate, Leonard E. Read, once warned of sinking in a sea of “buts.” I believe in freedom and self-responsibility, “but” we need some minimum government social “safety net.” I believe in the free market, “but” we need some limited regulation for the “public good.” I believe in free trade, “but” we should have some form of protectionism for “essential” industries and jobs. Before you know it, Read warned, the case for freedom has been submerged in an ocean of exceptions.

Each of us, given the constraints on his time, must try to become as informed as possible about the case for freedom. Here, again, Read pointed out the importance of self-education and self-improvement. The more knowledgeable and articulate we each become in explaining the benefits of the free society and the harm from all forms of collectivism, the more we will have the ability to attract people who may want to hear what we have to say.

Another lesson to be learned from the earlier generation of socialists is not to be disheartened by the apparent continuing political climate that surrounds us. We must have confidence in the truth of what we say, to know in our minds and hearts that freedom can and will win in the battle of ideas. We must focus on that point on the horizon that represents the ideal of individual liberty and the free society, regardless of how many twists and turns everyday political currents seem to be following. National, state, and local elections merely reflect prevailing political attitudes and beliefs. Our task is to influence the future and not allow ourselves to be distracted or discouraged by who gets elected today and on what policy platform.

Let us remember that over the last hundred years virtually every form of collectivism has been tried—socialism, communism, fascism, Nazism, interventionism, welfare statism—and each has failed. There are very few today who wax with sincere enthusiasm that government is some great secular god that can solve all of mankind’s problems. Statist policies and attitudes continue to prevail because of institutional and special-interest inertia; they no longer possess the political, philosophical, and ideological fervor that brought them to power in earlier times.

There is only one “ism” left to fill this vacuum in the face of collectivism’s failures. It is classical liberalism, with its conception of the free man in the free society and the free market, grounded in the idea of peaceful association and individual rights. If we keep that before us, we can and will win liberty in our time—for ourselves and our children.

Robert Wenzel on the Global Riots

Robert Wenzel writes:

The world is exploding with protests, riots and in some cases revolutions. Behind this disruption of the status quo is the reaction against government attempts to force people against the natural order. In Egypt, Tunisia, Libya, and the like, it is pure revolt against totalitarian control. In Greece, Ireland and Wisconsin it is protests against the fact that governments can’t do the impossible, i.e. pay out more plunder than they take in (in one form or another). In Greece, Ireland and Wisconsin, the protesters clearly want the impossible. They want the plunder that isn’t there.

But at the core, the fundamental problem with all these upheavals is there is no indication that the people in any of these situations understand what makes for a growing prosperous society. In Greece, Ireland and Wisconsin, the protesters are clearly self-centered, who have no clue that they would live in a much better society if the governments simply ended their positions and stopped taxing the people. This would result in the people hiring the government employees in the private sector, where the incentives would result in a growing society.

In the revolutions of Egypt, Tunisia and Libya it is not clear what will replace the totalitarians. There is no indication that the masses understand the destructive nature of government control.

From Wisconsin to Libya, the teachings of Hayek, Mises and Rothbard are still not generally understood. Until they are, protests, riots and revolutions may simply just set the stage for future protests, riots and revolutions, as one government plan is replaced by some other government plan that won’t work in the long run. Nothing will really change until the people truly understand the importance of the rule of law, private property and free markets. Until Hayek, Mises and Rothbard are on the lips of revolutionaries the way Marx and Guevera and are now, the revolutions shall continue.

Quote of the Day

“A friend of freedom is an enemy of the State.”