Libertarianism and Austrian Economics blame the State for everything, while ignoring the Money Power.

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Libertarianism’s main fault: Blaming the State while ignoring the Money Power

February 20, 2012

“In all corners of the earth the words “Liberty, Equality, Fraternity” brought to our ranks, thanks to our blind agents, whole legions who bore our banners with enthusiasm. And all the time these words were canker-worms at work boring into the wellbeing of the goyim, putting an end everywhere to peace, quiet, solidarity and destroying all the foundations of the goyim States.”
Protocol 1

Among its many failings this one stands out: Libertarianism and Austrian Economics blame the State for everything, while ignoring the Money Power. By attacking Government, it covers the Money Power’s back to dominate the market through Monopoly Capitalism.

This is not to say that Government is not a problem. It is. We should not be naive about the Government’s ability to solve our problems. It can’t. The Government is not the Commonwealth.

In their own eyes, murdering the Czar was one of the Money Power’s greatest achievements. His despotism was a great example to them. Government Tyranny is a fact of history and getting rid of the Money Power would leave a power vacuum that Government would love very much to fill.

The fact alone that the Money Power managed to take control of every Government on the planet itself speaks volumes about the trust it deserves.

With the descent into an outright police state in the US and ever less friendly fascism in the EU, with ongoing mayhem in the Middle East and naked Imperial aggression now threatening Iran and World War 3 we are reminded every day of what the State is capable of.

But the problem with the Hate the State narrative is this:

A well known picture and a basic paradigm of the conspiracy. The Money Power sits on top! Of course it does, that’s what it’s all about.

And the Money Power rules through control of the Money Supply. This gives them all the wealth in the world and this they use for buying the all politicians and all the black budget projects and all they need to build World Government.

So why hack away at the State and declare that the main problem? What purpose would that serve, but to keep our eyes off the ones at the top?

The monetary situation
The monetary situation is, that the Money Power has forced Governments to surrender their currency monopoly to the semi private Central Banks of the Money Power.

Austrians blame the Government for the manipulation of volume, but everybody knows the Fed is not even a Government institution! The ECB is, but it is still totally controlled by the Money Power. So it is ridiculous to blame the State. The State itself is totally under the Money Power’s control, because it is so indebted. It needs the banks for cash and that’s why they’re totally subverted.

Austrian Economics itself of course suggests Gold as currency, but this does not take away control of the money supply away from the Money Power at all, as we have discussed time and again. A ‘free market’ for currencies in the Austrian sense of the word would still be wide open to manipulation of Volume, as the Money Power controls the flow of Gold in the market.

Populists in the US have always tried to wrest this control away from the Money Power. The war of independence was fought to regain the power to print money, as the British Crown was demanding tax payments in Gold. This struggle has been going on ever since, although after the Second World War there were only few who understood what was at stake.

Jefferson, Calhoun, Jackson, Lincoln, Bryant and of course JFK, who seems to have been awakening in the months before he was shot.

Today’s populists, like Ellen Brown, Bill Still and Dick Eastman, even though they don’t agree with each other’s solutions, have in common that they want the Government to create the money, in the service of the populace.

This means that they want the Government to take control of the money supply back from the Money Power.

Libertarians will always and forever sabotage this much needed and basic reform by saying it is ‘statist’. Or, of course, with the boring clincher ‘it’s fiat money, it’s bad, bad!’. Interest-free or not.

But the pyramid clearly shows that it would actually devolve power from the top to one level lower.

Government would create the money interest free, withholding vast sums of interest to the Money Power. Government would also not allow deflationary contractions.

It is true, that Governments have historically inflated the money supply, with negative consequences, but so has the Money Power itself. So Government money would solve the two biggest problems with our money: the business cycle and deflation and interest. While the inflation problem would probably not be bigger and in fact smaller than it is now: without interest on the money supply there is no intrinsic driver for the Money Supply to grow forever.

Conclusion
Liberty and Freedom are just wonderful slogans.

Liberty to do what? Freedom from what? For who? Careful analysis is necessary to answer these questions.

Government is not a panacea. We need to reevaluate thoroughly what role we see for it. If anything Austrianism has given us useful information about the negative implications of many Government interventions.

But claiming it is THE problem is simply wrong and flies in the face of everything the Truth Movement has uncovered over the last decade or so. Of what Populists have been fighting for for 250 years.

The Money Power has been clamoring for ‘Freedom’ for centuries. It is one of their favorite watch words.

It means freedom for them.

Thanks to their blind agents of Libertarianism, whole legions bear their banner with enthusiasm, an ounce of Gold in the pocket. And all the time this word was a canker-worm at work boring into the well-being of the goyim, putting an end everywhere to peace, quiet, solidarity and destroying all the foundations of the goyim States.

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How the Money Power created Libertarianism and Austrian Economics

February 17, 2012

“You say that Marxism is the very antithesis of capitalism, which is equally sacred to us [The Money Power] It is precisely for this reason that they are direct opposites to one another, that they put into our hands the two poles of this planet and allow us to be its axis. These two contraries, like Bolshevism and ourselves, find their identity in the International.”
Otto Kahn, Investment Banker

William S. Volker (1859-1947) was a wealthy German-Jewish businessman. Dismayed by the rise of Socialism in America, he created the Volker fund to provide a reactionary ideology based on “laissez-faire” and Social Darwinism. This was to become Libertarianism. 

This article was written for Henry Makow

Libertarianism and its twin sister Austrian Economics were invented by the Money Power to be the other side of the dialectic with Communism.

According to this amazing report, all non-specified quotes in this essay are taken from it, “Volker was no great scholar or thinker. The ideology he set out to create was built upside down, starting only with a set of foggy conclusions for which he had a predisposition. From these conclusions, it was the task of Volker’s considerable fortune to find a set of justifications, then an enabling ideology or “theory” that gave it all perspective and unity and, eventually, a true philosophical platform from which to launch the whole.”

Even though Volker was not an economist of philosopher he had money and, very important, influential relations with the University of Chicago, founded by John D. Rockefeller.

This turned out to be a crucial connection.

Volker’s nephew Harold Luhnow took over the Fund in 1944.

Friedrich Hayek’s ‘the road to Serfdom’ was published the same year. With its defense of ‘laissez-faire’ capitalism and claim that any attempt at regulation would inevitably lead to totalitarianism, it was exactly what the Volker Fund had been looking for. It was only then that the Volker fund started to have a real impact. It arranged for a reprint of Hayek’s book with the University of Chicago and made sure the book ended up in every library in the United States.

The Volker Fund would finance all the leading Austrian Economists and would have a substantial impact on the ‘Chicago School of Economics’, including Milton Friedman.

Von Mises, who throughout his career never held a payed job at any University, was maintained first by David Rockefeller and then for decades received money from the Volker fund and related business men, like Lawrence Fertig.
Von Mises’ biographer, Richard M. Ebeling:
“Many readers may be surprised to learn the extent to which the Graduate Institute and then Mises himself in the years immediately    after he came to United States were kept afloat financially through generous grants from the Rockefeller Foundation. In fact, for the first years of Mises’s life in the United States, before his appointment as a visiting professor in the Graduate School of Business Administration at New York University (NYU) in 1945, he was almost totally dependent on annual research grants from the Rockefeller Foundation.”

David Rockefeller himself was quoted as saying: “Finally, in his most surprising statement, he revealed he considers himself a follower of the Austrian school of economics. Friedrich Hayek had been his tutor at the London School of Economics in the 1930s.“

Rothbard too was financed by the Volker Fund:
“Rothbard began his consulting work for the Volker Fund in 1951. This relationship lasted until 1962, when the VF was dissolved. A major part of Rothbard’s work for the VF consisted of reading and evaluating books, journal articles, and other materials. On the basis of written reports by Rothbard and another reader – Rose Wilder Lane – the VF’s directors would decide whether to undertake massive distribution of particular works to public libraries.

Rothbard later called his work with the Volker Fund, “the best job I’ve ever had in my life.”

The Volker Fund also explored a tactic that was to find wider application later: it spawned an enormous number of organizations, loosely organized to suggest mutual independence and a ‘Libertarian Movement’. Among these was the Foundation for Economic Education, which in turn would create the Mont Pelerin Society.

The Mont Pelerin Society
The Mont Pelerin Society was named after the  Swiss Alp where the first conference was held. It was founded by Hayek with the financial support of the Volker fund, which payed for the expenses of all American participants. Key co-founders were von Mises, Milton Friedman and Karl Popper.

No less than eight  Noble prizes for Economics were to be won by Mont Pelerin members in the decades ahead. Not bad, for a ‘fringe movement, ignored by the Mainstream’.

The Mont Pelerin, in turn, oversaw the creation of many influential institutions. One of them was the Institute of Economic Affairs in London, 1955. This organization reinvented the Conservative Party, of which Margeret Thatcher was to say: “You created the atmosphere which made our victory possible… May I say how thankful we are to those who joined your great endeavor. They were the few, but they were right, and they saved Britain.“

The Heritage Foundation was also a result of the Mont Pelerin Society, as were the Manhattan Institute for Policy Research and the Atlas Economic Research Foundation, which in turn birthed a plethora of think tanks, including the Fraser Institute.

The amount of money that was invested in all this was tremendous:
“John Blundell, the head of the IEA, in a speech to the Heritage Foundation, and Atlas in 1990, would identify a rare failure in the Society’s efforts. Shaking his head at the abortive attempt to subsidize academic “Chairs of Free Enterprise” in dozens of countries throughout the world, Blundell complained about wasting, “hundreds of millions, perhaps one billion dollars”. This was just one initiative among many.”

 

The Koch Family.
The Volker fund was disbanded in 1962. It still had $7 million in assets, which it donated to the Hoover society.

But in the mean time another very wealthy Jewish family,  the Koch family (see ‘the Zionist Billionaires that control Politics‘), had taken over the organization of Libertarianism and Austrian Economics.

Fred Koch founded the John Birch Society in 1958. Ed Griffin was educated there. He later wrote a famous book, “the Creature of Jekyll Island”. This was a rehash of Eustace Mullins’ brilliant ‘Secrets of the Federal Reserve’, with one exception: it left out all Mullins’ analysis of the Gold Standard as a Banker operation and how Britain’s demand for taxes payed in Gold were the cause of the war of Independence. Instead it called for the reinstatement of a Gold Standard. This is a key part of the story how Austrian Economics managed to take over the ‘Truth Movement’.

Koch’s son Charles Koch founded the CATO Institute, together with Murray Rothbard. The CATO Institute remains to this day a leading Libertarian outlet.

Libertarianism as a Jewish Movement
Most Leading Libertarians are or were Jewish. Von Mises, Rothbard, Ayn Rand, Irwin (and Peter) Schiff. According to Peter Schiff, his grandfather Jacob Schiff is not the same as the infamous financier.

Rothbard himself had interesting views about race and inequality in the free market: “Rothbard was proud to be a ‘racialist’ because racialism exposed the true source of inequality in a free market, namely genetics. A belief in biological racial inequality was, for Rothbard, part of the libertarian project, because racial inequality was simply how markets reflected nature. Moreover, this was no sudden conversion: Rothbard promoted the same view, as early as 1973, here.”

So Jewish Supremacism can be retraced directly to the Austrian Economics’ main proponent himself.

Conclusion
Libertarianism and Austrian Economics are not the products of maverick free thinkers. On the contrary, all leading proponents of the movement were highly connected individuals. In the early years the Volker Fund made available vast sums of money, because Austrian Economics was considered the right answer to communism, to maintain the dialectic the Money Power needs (also see: ‘Banker explained ‘Occupy America’ Scam‘).

Far from a fringe movement, Mont Pelerin Alumni collected no less than eight Noble Prizes. Alan Greenspan testified of its pervasive influence by saying in 2000:
“the Austrian School have reached far into the future from when most of them practiced and have had a profound and, in my judgment, probably an irreversible effect on how most mainstream economists think in this country.“

In this day and age when communism is no longer considered a threat, but with Marxism/Liberalism/Political Correctness a strong force in Western nations, Libertarianism has found a new lease of life as a way co-opting the resistance in the Alternative Media.

The dialectic continues unabated.

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Top Ten Lies and Mistakes of Austrian Economics

January 25, 2012

In the face of Austrian Economics’ ongoing onslaught through Ron Paul, the Mises Institute and Gold Dealers parading as the ‘Alternative Media’, we present the next installment in our series of articles exposing it for what it really is: just another Banker Mind Control Operation.

1. Bankers hate Gold
Nowadays everybody knows that the 19th century was called ‘the Age of Rothschild’. They controlled the Gold Market and became incredibly rich by lending the stuff to Governments.

The Money Power came to power through Gold.

They love it because it is deflationary, they can tax it with interest, they can create the boom/bust cycle with it and they control it completely.

Clearly Bankers don’t hate gold. Europe was on a Gold Standard for the entire 19th century and left it only in the thirties, due to the horrible deflation that was the Great Depression. Populists at the time finally managed to force their Governments to get rid of it. They had been warning about its deflationary tendencies for ever.

Gold is de facto World Currency.
Ron Paul: “Commodity money if voluntarily and universally accepted could give us a single world currency requiring no money managers, no manipulators orchestrating a man-made business cycle with rampant price inflation.” — Ron Paul, Congressional Record, March 13, 2001

In older days Austrian Economists would say Governments hate the Gold Standard. Alan Greenspan, one of the more famous Austrian Gold loving Bankers, wrote in 1966: “An almost hysterical antagonism toward the gold standard is one issue which unites statists of all persuasions.“

Government, of course, is Austrian Economics’s classic enemy, but the adversary du jour in the ‘Truth Movement’ are the Bankers. So to sell something we say Bankers hate it.

They did face the little problem that the American Populists would be very hard to convince of this. Not in the least because of the book ‘Secrets of the Federal Reserve’ by Eustace Mullins, who famously described who owns the FED and how it came about. Mullins of course was quite explicit in his analysis of Gold as the Banker’s favorite currency.

But Ed Griffin solved this for them. He wrote an even more famous book: ‘the Creature from Jekyll Island’. This is basically a rip off of Mullins’s book, with one difference: it proposes a Gold Standard to get rid of the FED.

In this way Griffin obscured the truth for millions of people, who assumed he was basically saying the same thing as Mullins.

2. Government is the main problem
This is the red herring that Austrian Economics is famous for. Just like the mainstream it completely ignores the Money Power.

Austrian Economics is also incredibly ‘naive’ when it comes to private interests controlling markets. Austrian Economics will always explain Governments shouldn’t mess with the economy, while ignoring the monopolistic inclination of Capital.
As a result Austrian Economics is the wet dream of the Trillionaires, as they will resist any Government action against them and their Transnationals.

Austrian Economics will actually blame Government for the fact that markets now are controlled by Transnational Cartels. Why they don’t seem to consider the shareholders and controllers responsible remains an open question.

To be fair, the analysis of Austrian Economics about the negative implications of many regulations is spot on and very enlightening.

However, to ignore the power struggle that is inevitable both in the market in and politics, is so naive and pleasant to the powerful that it is almost impossible to fathom how somebody else could have thought it up than these powerful interests themselves.

The fact is, that Governments all over the world have been subverted by private interests. And these private interests are quite homogenous. This international centralization of power, concentrated around extremely rich banking families, the Money Power, is the problem.

Government is a neutral institution, associated with a Nation. Public Opinion can always force its hand.

But when both Government itself AND Public Opinion are captive to the Money Power, Government will become quite unpleasant.

Soon, it will be obsolete, as it surrenders its sovereignty to World Government and World Currency. Governments and certainly Nations will never voluntarily surrender sovereignty.

These projects clearly belong to the Money Power.

3. Manipulation of the Volume of the Money Supply is the main problem with our money
Another red herring: manipulation of Volume is certainly quite a scourge. But it ignores an even bigger problem: Interest.

The Government currently pays 700 billion per year in debt service for the National Debt.
It matters not whether she pays this for Gold or for paper.

We currently pay $150.000 dollars in interest over thirty years for a $100.000 mortgage. Most of this mortgage was created by simple bookkeeping the moment we borrowed it.

45% of prices we pay for our daily needs are compensation for capital costs incurred by the producer.

We are Interest Slaves.

But if we can have credit by bookkeeping, clearly we should get the money interest free, because it is our credit, not the bank’s.

4. Gold guarantees a steady volume
This another very strange supposition. After all, the Gold Standards of the past saw horrible asset bubbles.

The boom/bust cycle has nothing to do with the currency, but whether the money supply is being manipulated.

The idea that Gold cannot be printed and that that give security about the volume is nonsense. Bankers routinely have withheld vast quantities of specie from circulation, only to inflate at a later stage again.

5. Inflation is bad
It is certainly true that inflation knows problems.

Inflation hurts savers,  creditors and people on pinned incomes. But it is pleasant for debtors, of which there are far more than creditors. And, very important, inflation is associated with economic growth. People stop hoarding cash and rather invest and spend.

The one sided focus of Austrianism on inflation, while actually promoting the horror of deflation (see next) makes it look like they’re demonizing inflation in order to make deflation more palatable.

6. Deflation is good
This statement is so incredibly favorable for the ultra rich, who are basically the only ones who benefit from deflation, that it puts Austrian Economics in a very bad light.

Austrians clearly promote the Deflation vs. Inflation dialectic, with all its nefarious implications.

Deflation hurts debtors. It makes their debts and the interest they pay over it worth more.

Deflation is a wealth transfer from those holding assets to those holding cash.

Deflation destroys economic growth because people rather hold cash than invest or spend it.

As a result, Deflation on all fronts makes the rich richer and the poor poorer.

7. We don’t want a Gold Standard, we want a Free Market for Currencies
This is such nonsense.There are two major reasons why it is.

1. In fact, the idea of a Currency Free Market is quite attractive. In the case that all different systems would receive the same funding and propaganda, such a market would undoubtedly see Mutual Credit Facilities providing interest-free credit prevail, see below.

However, only Gold and perhaps Silver, but not if they can avoid it, will receive all the attention and funding. In fact, Mutual Credit will be resisted actively by the Money Power.

This will not be hindered Government, who just by decree created this new ‘Free Market’, because that would be ‘statist interference’

Thus, only Gold will circulate.

2. Would there be a ‘free market’, there is Gresham’s Law. Bad money drives out good money.

It means that the units appreciating in value will be hoarded, while those depreciating will be used to pay.

Everybody will accept the depreciating unit (as long as it is not hyper inflating), because most will want to pay with it and firms will have to accept them to accommodate their customers. They won’t have a problem with that anyway. Firms don’t care what the money will be worth in a year. They want to know where they can spend it tomorrow.

This means nothing will happen if Ron Paul’s proposal to make Gold and Silver also legal tender is accepted. People will continue to pay with the Fed’s notes and hoard Gold.

Also, if you can get a Gold based mortgage costing 5% per year, or a 0% mortgage in Mutual Credit, which would you chose?

Case closed.

8. Austrian Economics is hated by the Main Stream Media
While it is true that Austrian Economics is a fringe, also in terms of Media Attention, it always has maintained a steady niche. It is not for nothing that Peter Schiff and Gerald Celente were predicting the crash in the MSM.

Lately, Ed Griffin was plugged by Glenn Beck on prime time T.V.

Judge Napolitano gets all the airtime he wants on Fox News, spouting his Austrianism. Amazingly, the fact that even Fox News will plug Austrianism does not ring a bell with people.

9. Fiat Currencies are always bad
Another typical device: a dialectic. Trying to frame it as Paper vs. Gold. Both ignoring interest.

But interest-free paper is of course something else entirely. At least it won’t suffer from the forced inflation on interest-bearing money supplies. Because the interest is not spent back into circulation, but lent back, there is never enough to pay off all the debt + interest. During a Gold Standard this is deflationary, because the money supply can’t grow. With paper, this is ‘solved’ by ever more debt. With ever more interest.

Modern Mutual Credit is inflation free. Or better: the market is in control of the money supply. It grows when it must, shrinks when it must.

Social Credit is probably inflationary, but everybody will be fully compensated for it because of the fact that they spend the inflationary cash into circulation themselves. Meanwhile, the inflation will stimulate production.

They are trying to promote the idea that Fiat Currencies are automatically bad ‘because the volume will be manipulated’.

This is the eternal clincher, killing all rational debate about how to manage all the different parameters in the different proposals.

10. The problem is the FED
The FED is a symptom, not the problem. The problem is that the Money Supply is controlled by the Money Power, which uses this control to enslave us with interest, scarce money and the boom/bust cycle.

The FED is their vehicle. We want to get rid of it, because we want to end the control of the Money Supply by the Money Power. It’s not a goal in itself.

Austrians use this to ‘fight the FED’ and gain sympathy and support, meanwhile maintaining the control of the Money Supply with the Plutocracy.

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