Tag Archives: Communism

Man Crushed by Road Flattening Truck On Orders of Chinese Officials

From Info Wars:

Villager attempted to resist forced government relocation

Paul Joseph Watson
Infowars.com
September 25, 2012

A villager in northern China attempting to resist a forced government relocation by remaining on his land was brutally crushed to death by a road flattening truck on the orders of a Chinese government official.

The story, which was censored in China’s state controlled media, has caused outrage amongst users of Weibo, the Chinese version of Twitter, given it’s horrifying similarity to what happened to student protesters who were crushed to death by tanks during the Tiananmen Square protests in 1989.

The victim, He Zhi Hua, refused to accept a paltry payment from the government which has forcefully evicted Changsha Village locals in order to re-appropriate their land for commercial use.

When Hua began a protest by lying down on the spot through which construction vehicles had to pass, the local Vice Mayor ordered workers for the state-owned company to murder Hua by driving over his body with a huge road-flattening truck.

Shocking images show Hua’s pulverized brains and his mangled body in the aftermath of the state-sponsored execution.

Fearing unrest if the story got out to a wider audience, the government sent in 200 men to keep angry locals at bay and hide the remains of the body. The man’s family was offered a sum of money in order to keep quiet about the incident.

China is routinely rocked by riots staged by residents furious at the arbitrary theft of their land by the state, which under the Communist system claims that the government owns all land and that private property rights are non-existent. However, the state-owned media ensures that news of the protests does not reach a national audience.

In another similar case in Pan Jin City, when villager Wang Shi Jie tried to prevent workers hired by local government officials destroying his crops and confiscating his land before harvest, he was shot dead. When Jie’s father attempted to rush to his son’s aid, he was shot in the leg twice.

After the incident, hundreds of police officers were sent to dispose of the body and beat up villagers who complained about the man’s murder. The dispute started after it emerged that the agricultural land was being sold by the government to developers without the villagers having been notified.

Hua’s and Jie’s brave efforts in standing up to the savage Communist Party officials also brings to mind the courageous actions of Wang Weilin – otherwise known as ‘Tank Man’ or ‘The Unknown Rebel’. Weilin blocked the path of a column of Chinese tanks the morning after the Tiananmen Square massacre – footage that has become an iconic representation of the individual standing up against an oppressive state.

The Free Market

“The freedom to trade is derived from the freedom to own property. The freedom to own property is derived from the freedom to own ourselves. When you take away the Free Market you take away self-ownership.” - Anthony Freeman

The Soviet Story

Who Is “We”?

One of the beliefs that most distinguished the fascists, Nazis, and communists of the 20th century was their organic view of society. Proponents of all three ideologies thought of society as an organism – and of each of you, dear readers, as simply a cell in some part of the organism. And just as our cells have no importance outside their ability to serve our whole body, in the aforementioned three ideologies, our whole beings had no importance aside from their ability to serve the whole society. So, of what value was the individual? He was simply a tool for the ends of others, none of whom have importance either because they, also, were tools. And if society was an organism, then it made sense for the head to run things, right? Government was thought to be the head. And, of course, because there were many people within government, the true head was leader of the government – Mussolini, Hitler, and Lenin or Stalin.

Why is all this relevant to an article by “The Wartime Economist?” Because the organic view of society, though hostile to the basic principles of individual rights on which the United States of America were founded (I use “were” on purpose; “states” is plural) has crept into our language and has distorted much thinking on the issues of the day, including war. It is particularly important in discussions of war because people are more likely to fall into the trap of seeing war as a conflict between two organisms rather than what it is, a conflict between two governments that, in most cases, have dragooned their countries’ resources with little or no consent from their citizens. So, for example, most people who discuss U.S. foreign policy, including, distressingly, most libertarians, talk about what “we” did when it was, in fact, not you or I, but specific government officials, who took the actions they’re describing. They say, “We dropped the bomb on Hiroshima,” not “Harry Truman decided to send a small number of people in the military to drop a bomb on Hiroshima.” “The Japanese [or, more commonly, "the Japs"] bombed Pearl Harbor,” rather than “The Japanese government decided to send hundreds of pilots in airplanes to bomb Pearl Harbor.” Etc.

George Orwell wrote a famous essay, “Politics and the English Language,” and a famous novel, 1984, making the point that language really does affect thinking. In 1984, he focused on the fact that, without certain words, certain thoughts could not be expressed – thus the importance of the government’s “memory hole,” down which certain words went. In his “Politics” essay, Orwell also pointed out the other side: using words can affect how we think. And that is my point here. Specifically, if we use the word “we” to refer to what specific governments have done and will do in the future, we are adopting the organic view of society, which most definitely will affect how we think.

I saw this in a conversation my wife and I had recently with a well-traveled man we met while in San Antonio. In response to an innocent question about what his favorite place in the world was, he lit into an attack on George Bush and Bush’s foreign policy. At some points in his rant, he personalized the issue – for example, when he talked about “Bush’s war.” There’s nothing wrong with speaking that way: it is Bush’s war. But then he went on to say that the Sept. 11 attack was “self-inflicted.” It was a predictable result of the U.S. government’s meddling in the affairs of other countries, he said. Now, as it happens, I agree with this last statement. But he then went on to minimize the loss of 3,000 people on Sept. 11: what did the lives of 3,000 people matter when millions have been murdered throughout the world? That I don’t agree with. I thought then, and still think, that the loss was horrific and that the people who did it were among the most evil people in history. But that’s because I see each of the 3,000-plus people as an individual who matters. He doesn’t. Why? Because he has the organic view of society. Go back to his statement that the Sept. 11 attacks were “self-inflicted.” How did the young kid and the 40-something businessman on one of the flights inflict it on themselves? They didn’t. So, what did this man really mean? He meant that the U.S. government had helped to bring on the Sept. 11 attacks. But his organic view of society – society is an organism with government as the head – led him to say that the killings were “self-inflicted.”

The great tragedy of collectivism, the organic view of society, is that it makes people heartless – they become incapable of seeing the real losses and hurts inflicted on innocent people because they stop seeing them as individuals. The example above is one of someone who couldn’t see the hurt that individual innocent Americans suffered in the Sept. 11 attacks. Another example is how hard it is for Americans to see the hurt that the U.S. government inflicts on many foreigners. Two instances come to mind.

While reading a draft of one of my students’ thesis chapters a few years ago, I came across the statement, “Fewer than 150 people were killed in the 1991 Gulf war.” I wrote in the margin that the number killed was likely in excess of 100,000 people, three orders of magnitude higher than the number he mentioned. When we went over his chapter together, he said that when he wrote “people,” he had meant “Americans.” His mistake was an innocent one, but it was an innocent consequence of a selective collectivism: seeing Americans as individuals, but people of other societies – particularly ones living in countries on which the U.S. government had made war – as part of an organism.

My second example is like that of the man who thought Sept. 11 was “self-inflicted.” Kevin S., a Navy officer and former colleague of mine at the Naval Postgraduate School, was burned by fuel from the airplane that flew into the Pentagon on Sept. 11. It looked as if he wouldn’t live, but he did. It was a heroic story that was written up in his local Virginia newspaper. The article talked about his recovery and had me cheering for him and his spirit. But then the article stated that Kevin had contacted some of his buddies in the Air Force and asked them to write on one of the bombs to be dropped on people in Afghanistan, “Kevin sends.” As much as I sympathized with Kevin, I was equally sympathetic toward some of the people whom “Kevin’s” bomb would injure or kill, who were at least as innocent as he was. Unfortunately, Kevin’s collectivist thinking prevented him from distinguishing between those who had hurt him and those who had not.

Collectivism is the ugliest ideology in the world. It has been directly responsible for well over 100 million deaths in the 20th century. Let’s do our part by not participating in it, even – maybe especially – in our language. The only hope we have for a peaceful world is to hold guilty people responsible for their actions and to treat the innocent people in all countries as innocent. Let’s quit talking about governments whose horrific actions we detest as “we.”

Copyright © 2005 by David R. Henderson. Permission automatically granted to use in whole or in part as long as publication, author, and title are attributed.

Capitalism is the 99%

Real capitalism, free enterprise, puts far more economic power in the hands of the “99%” than a managed economy such the one that exists today.

In a free market the 99% is the market.

In the attached article Robert Bradley at the Institute for Energy Research makes this point nicely.

Click here for the article.

Thanks to Nick Sorrentino for this story.

China Builds Desert Ghost City as Critics Warn of Bubble

Central Planning doesn’t work:

Watch Video

Moneybomb each other, not politicians

From PostPolitical.us:

By Harold (admin) on May 5, 2011

Illustration of old-style bomb with dollar sign on itThe grassroots efforts during the 2008 presidential campaign season spoke to the power of collective action toward a common goal. One of the most striking examples of this power was the success of “moneybombs” for Republican candidate Ron Paul. Rallying under the banner of the Paul campaign, thousands of people — most of whom had never met — donated money and worked together on a scale unprecedented in US electoral history.

In November 2007, these moneybombs helped Ron Paul raise more than $4.2 million in a single day. The very next month, Paul raised more in a single day than had ever been done previously; a total of more than $6 million, a record that still stands. Other grassroots campaigns also sprouted, each putting hundreds and thousands of hours and dollars toward the goal of raising money and awareness for Paul… and I was one of them. Motivated by Ron Paul’s presidential announcement, I launched my own grassroots effort to put up billboards in the early primary states.

The sum of all of these efforts became an important historical moment for grassroots political activism via the internet. It demonstrated what could be accomplished by “crowd-funding” projects using social media and other online platforms. The only problem was that it was all directed toward electoral politics; so all of that time, energy, and money was essentially wasted on trying to get “the right person” in office in order to make a change. A counter-argument is that even though Paul lost, his message was able to be spread throughout the country. The issue with that argument is that there are numerous individuals and groups already educating the public (and not just during election season) on a host of important viewpoints and issues; people whose efforts we could support to greater effect, given the same amount of time and money.

And who ends up with this money anyway? Large media conglomerates and corporate banks are often the final destination of funds; due to the fact that so much of it is spent on television advertising and other high-overhead, centralized methods — the (in)famous Ron Paul blimp, for instance. The term “moneybomb” seems pretty appropriate… considering that the money is essentially blown to bits by being used this way.

Now is the time to change the concept of moneybombing from something for politicians, to something for each other. We are increasingly living in a peer-to-peer world thanks to the internet; we need to utilize this technology to cut out the political middlemen, by working on solving issues for ourselves. Who is more fit to address the issues that affect us but us! Whether you have a great idea that needs funding, volunteers, or materials; or you want to contribute to others instead (or both!), we can achieve this without the bureaucracy and inefficiency of politics.

Robert LeFevre on Objectivism

From The Fundamentals of Liberty (page 6) – by Robert LeFevre

There are also those who contend that objectivity is everything. They contend that the world is real and that everything that is, is. They are correct in their contention as to the existence of reality. But they are not correct when they contend that the uses of the mind are also objective. It is from this argument that the assumption grows that accurate knowledge is totally objective and that anything that is incorrect is subjective.

Thus, those who favor objectivism attempt to make it appear that the “rational” man is one who has objective knowledge and the “irrational” man has only an opinion which remains subjective. This is a very attractive way of looking at things for it can always be interpreted to mean that you are “right,” and that anyone who disagrees with you is “wrong” and hence “irrational”.

The weakness in this philosophy relates to the fact that no one ever really knows everything about anything. You only know those portions of reality that you have observed and correctly understand. Knowledge is an open circuit, not a closed one. You can always learn more. This will be more fully demonstrated later on. The process of education is a continuing one.

The philosophy offered here actually combines subjectivity and objectivity without denying the valid features of either. The real world is objective. It exists whether you are aware of it or not. The uses of the mind are subjective. They relate to the manner in which you observe and the way in which you think. Knowledge is the correct union of the two.

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.

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 http://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.