Free-Market Capitalism Is Dead: The Latest Collectivist Wail

The latest wail put out by all the Socialist pundits, who put themselves forward to the public as analysts of the markets, is that the current financial crisis shows the dangers of unregulated, free-market capitalism, and it’s very necessary, perhaps on a world-wide scale, to impose regulations and laws that will insure that this type of thing never happens again. For the 50th time, the backers of fiat currency and socialist-hobbled capitalism (as we see in the US and Britain), are telling us: we must have reform, then it will be “never again”, again. They are going to make sure that Socialism doesn’t fail the 51st time around. Sure.

First of all, let’s dispense with the myth that we have Free-Market Capitalism in America. In point of fact, we have nothing of the kind. Since the creation of the Federal Reserve by Wilson in 1913, our credit creation and interest rates have been at the whim of 10 men, many of whom were, are, or had been closely ligatured to the very industry whose product (interest rates) they were regulating. Obviously, when an industry-insider group has such enormous economic power, which should be instead in the hands of the capital markets,  there was and is a wide field for wild abuse, as both Presidents Jefferson and Jackson realized and warned against five- and four-score earlier.

Then there was War-Criminal Nixon’s abandonment of the Bretton-Woods Agreement, essentially creating a non-gold backed fiat currency out of the Dollar in one fell swoop. One of the greatest economic crimes in history. Now, when a currency is no longer backed by any kind of commodity basis, and only on the “Full Faith and Credit” of some political entity, then watch out. This ending of the gold link had been preceded by fellow War-Criminal Johnson’s abandoning of the Federal Reserve Note as a Silver Certificate around 1964. How neatly these two matched their foreign War Crimes with Crimes against the Constitution and American Capitalism!

Moreover, Federal Bank Deposit Insurance, while it seems like a good idea to the man in the street, insures the kind of “moral hazard” which has brought the banking system to its knees in the current panic. It took decades, but it finally led to wild and unscrupulous lending because the banks knew the mountebanks in Congress would bail them out if the Piper ever demanded to be paid for playing all those tunes all these many years. And now the Piper wants his fare money back to Glasgow, and enough for a wee dram or two with the lads, and he’ll nae brook delay.

And finally, we have the catastrophe of Congress bankrupting America in one fell swoop, creating a quarter as much debt in a few weeks as was created in the first 230 years of the Republic, just to save their political skins, and it is working. The ones who passed this give-away to the corporate wealthy are going to get re-elected and sweep into power, both in the legislative and executive branches, so that it will be a piece of cake for the Collectivists and Keynesian Socialists to completely smother the last vestiges of Free-Market Capitalism.

So when you hear all these “financial pundits” and Congressmen calling for more “reform and regulation”, and how horrible dog-eat-dog capitalism and free-market competition is, know you that they are tightening the last screws on the coffin-lid of Free-Market Capitalism, and they intend to bury it, along with Human Freedom and Individual Rights, in the Potter’s Field of Socialism.

However, coffin-lid screws have a way of working themselves loose and sometimes breaking free every 2 and 4 years in America. Just wait for the elections of 2010. Oh boy.

Hoooooooooooooooooooooooooooooooooooooooooowwwwwwww! — Silverwolf

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11 Responses to “Free-Market Capitalism Is Dead: The Latest Collectivist Wail”

  1. Interest Rates » Free-Market Capitalism Is Dead: The Latest Collectivist Wail Says:

    […] Read the rest of this great post here […]

  2. hpx83 Says:

    It warms my heart to see another blog defending capitalism. It gives me belief that there are still some of us who will stand up for what is right. Thank you.

    Save capitalism

  3. lobobreed Says:

    hpx83 — Thank you, hpx83. Silverwolf just read some of your recent blogs and they are excellent. He would warmly recommend them to the public. Capitalism must eventually be the system of the future if Man is ever to attain freedom, and now we are headed back the other way again. To come so close, and yet blow it. We’ll just have to wait another few hundred years, because a few million people in America couldn’t be bothered to vote for Ron Paul. They’re sure paying for it now.

    Nor gor neste tog til Moscow? — Silverwolf

  4. hpx83 Says:

    I dont think the race is over yet, even if it looks like darker times are coming. Being a capitalist also means you believe in things like freedom and justice, and usually very strongly. This is the one thing that the statist/socialist community will never obtain, since their philosophy is based on denying reality. Thus they cannot believe too strongly in anything, since when the whims of their politicians change they may have to change standpoint.

    I am always on the lookout for strong believers of capitalism, and Silverwolf is officially added to the list 🙂

    Nästa tåg till Moskva går snart, men jag åker inte med.


  5. lobobreed Says:

    hpx83 — Good, I’m glad the next train for Moscow will be leaving without us.

    You are right that we should not despair about the future of Capitalism. It is the way of nature, and Man’s natural and just inclinations, and it will re-emerge after this current carcinoma of communism has killed American and European capitalism.

    But what of Capitalism in Sweden? We would be interested to hear your views on the health of Capitalism there, does it still exist, and do you think America is now more socialist than contemporary Swedish society?

    You might also find a refreshing site to visit, as it is filled with pro-capitalist, well thought-out essays. It’s so tedious to always have to listen to the socialist propaganda put out by 98% of the mainstream media pipelines. Austrian School Economics is just another term for Pure Capitalism, and The Mises Institute seems dedicated to discussing it, and making the classics of Capitalism available to all for free. (For the record, we have no commercial interest in the Mises Institute). — Silverwolf

  6. hpx83 Says:

    You seem to have at least some knowledge of swedish?

    As for capitalism in Sweden, Sweden has been a thoroughly socialist country for more then half a century. Well that is not strictly true – what has kept us going is that the social-democratic party has constantly had to keep moving away from their socialist roots out of fear of losing votes, so basically we have the left and the center-right, both moving towards the middle. Not much room for ideology in the middle though. Currently the center-right bunch are in control, and although taxes go down somewhat, they still try to do a lot of socialist things while pretending that they didn’t breach ideology.

    I guess we have what you would call a capitalist market under socialist government control. I think America still has more economic freedom (as far as lower taxes go), but it is probably going to be the world leader in financial regulation soon. As far as proponents of capitalism in sweden there are some, but sadly a lot of them are just people who want to live on inherited money all their life, and do not care about the ideology as long as they get to keep theirs. If they thought fascism or communism gave them a better chance to live their lives without working, they’d as soon vote for that.

    Mises is great! I am planning to do some reading up on both Mises, Hayek and others soon. I disagree with a few political standpoints that may be voiced now and then (there are a few outspoken anarchists associated with the mises institute) but for capitalism and economics, its a wonderful place.

  7. lobobreed Says:

    hpx83 — Mange takk for the analysis of Swedish Capitalism/Socialism which we found most illuminating. Svenska doesn’t sound too different from the People’s Soviet Socialist Republic of America. We have a massive amount of government interference in the economy, and the everyday man’s private economic affairs, that any true capitalist initiative is wiped out for the mass of people.

    My favorite work is Hayek’s “The Road to Serfdom” which unfortunately is about the only major work not available on PDF from Mises Institute, one suspects for some obscure copyright reason. But there is so much theory to read and ponder over, that there is literally a capitalist goldmine of philosophy in those many works the Institute has made available.

    One finds their discussion threads less illuminating, with quite a lot of opinionated views, many of which one disagrees with. However, one does not believe in censorship.

    One has also debated some of those anarchists, and presented one’s objections to anarchism, which they did refute in large part, to one’s satisfaction. The Capitalist Anarchists are great respectors of Property Rights, and that is why their system is feasible. Anyone who acted in the way one fears anarchists would act (i.e. without any restraint or morals), would actually be violating the first principle of these capitalist/anarchists which is to respect those property rights. It sounded a lot better after they explained it.

    However, given the typical American’s love of “Law and Order”, anyone arguing Anarchy or Anarcho-Capitalism is going to turn off the average American before they can get their logical arguments out of their mouths.

    Nor are we convinced that the Anarchists are correct. And therefore, Silverwolf puts forth a Minarchist position, that a small modicum of government may well be necessary, at least to insure the Jeffersonian Rights mentioned in the U.S. Constitution, and we think a Minarchist-Capitalist philosophy would have a much greater practical chance of winning an election in America, than an Anarcho-Capitalist position. So one espouses a more gradualist approach to the re-introduction of Free-Market Capitalism to an America which has become accustomed to the big-nipple Socialism of post-FDR America. And this gradualist approach has been put forth by Ron Paul, although Rothbard thought we should have a Capitalist Revolution, and sweep away all the Socialist programs in a few beautifully hectic weeks. Rothbard argues quite forcefully against gradualism, but the American public at large would probably reject his radicalism.

    I gamle dags, one acquired some knowledge of Norsk, after developing a crush on a Norwegian she-wolf sculptress. Forgive the spelling errors.

    Moreover, one cannot fail to note how lucidly hpx83 expresses himself in English, far more lucidly that the average American high school student. Perhaps we should start sending our teenagers to Sweden so they can learn to write English. — Silverwolf

  8. hpx83 Says:

    Another voice for “The Road to Serfdom”. It seems inevitable that I spend whatever remains of my tax-crippled money on getting a copy, so to better be able to bring forth logical punishment on the socialist policies of today. In regards to the Mises Institute – one should probably cherish it for all its information, and put a blind eye to whatever absurdities the discussion threads may contain. I am very much in doubt in regards to anarchism (of course, willing to change that view were the right arguments given) and have pretty much the same Minarchist position as Silverwolf. A recent calculation gave a total tax of 3% here in Sweden, were we to cut everything except military, police and the law system. I would consider this a fair rate to pay to not be disturbed by socialist, fascists and other lesser grades of human appearence.

    I am currently planning some sort of effort to gather fellow capitalists around the web, maybe nothing more than a blog round up. The dream scenario would of course be a complete community effort with vast amounts of available information, possibility to subscribe to publications from other capitalists etc. but this may prove far too timeconsuming. I do have all the necessary tools, being in the programming/IT-consultant business. Time will tell in what form my capitalist ambitions will present themselves.

    Finally, we agree that Norwegian and Swedish are very similar. I understand Norwegian, but do not propose to be able to speak it. As for my english – this is the very limit of my ability, but I tend to spend more time thinking about correct ways to put forth my opinions when important matters are at stake. Swedish as a language lacks many of the synonyms available in the english language, and does not possess the ability to define as clearly ones exact feelings. At least in my opinion.

    Feel free to send over a few of your worst cases of language degeneration and I will happily bash them with a fresh copy of the Oxford Dictionary.

    Many thanks for a pleasent discussion, I sincerely hope for further future contact. -HPX

  9. lobobreed Says:

    HPX — Yes, thank you for your perceptive and thought-provoking comments.

    Quite apart from what one writes or thinks, are ones actions in the market. The Bond Trader’s in Chicago have probably done more to sober the American public up in the last few weeks than all of our theoretical discussions on Capitalism. The FED can manipulate short term interest rates, but they have no control over the vast quantities of bonds they have pumped into the world system. Fortunately for them and for America, a lot of foolish investors were willing to buy them at under 5%, and also buy the Clinton philosophy, and they are amongst those who are losing the biggest.

    In addition to the investors, a lot of Socialists who benefitted from Clinton-Bush big government are amongst those who have lost the most recently. “Believe, and you’ll be disappointed” is no empty dictum. The Dow first crossed
    10,000 in 1998. Now those believers have lost not only 10 years guaranteed bank interest, federally insured, but an eighth of their principle, while incurring great risk. They spent 10 years sleeping under a rotting oak, forgetting that oaks rot from the inside out. Maybe it’s some kind of cosmic or divine payback for all the lives they ruined during the Clinton years by throwing people in jail for cannabis, a position which the Witch still endorses. Thank Heavens we won’t have her for President, at least for four years!

    In a larger sense, it’s a real shame that so much human energy must be dissipated just to bring Mankind to the Libertarian/Capitalist position, which will not be an end in itself, but actually the starting point of Human Freedom. Capitalism is just the basis for Praxeology, which is Human Action. And a society where people are free to engage in the Human Action which fulfills their values will be the finally flowering of Capitalism, not just having a large bank account while one spends all one’s life on the couch, watching other people’s movies.

    And as they say, “Money is not the root of all evil — lack of money is.” When Americans can muster the discipline to save enough so that, let’s say, each American had 100k cash in the bank, much as the average Japanese probably has, then we won’t need a huge welfare system, so taxes will be much lower, nor would there be much need for people to donate to charities doing welfare work, since there would be little demand for these services. With a very low, or non-existant income tax, and given the amazing generosity of Americans, whomever did need welfare assistance could almost certainly easily obtain it from a charity that fitted in with their value systems. The major religions would still have their assistance programs, but probably with better self-help guidance than any government-run program, which always has volumes of bureaucratic rules.
    But the Socialist taxes and the consumption-propaganda constantly thrown at Americans virtually insures that they can never acquire this wealth through savings.

    One was intrigued by the idea of one of the early Libertarian candidates for president, who went nowhere, of raising tax revenue for the court system by having a voluntary fee on contracts whereby both parties would agree to a govenment-adjudicated decision should they have any contractual disputes. Basically, an insurance policy issued by the government for a small fee, to cover court costs plus a surplus, which would warrant all private contracts. This would give strangers the assurance to enter into commercial contracts without having to worry about suing privately. On the other hand, two parties who knew each other well and trusted each other could dispense with this insurance, write their contract without it, and save the fee.

    But America now will have the double curse of a Democratic President and Congress working in lockstep to pass a whole new rash of grandious spending plans in the tradition of Franklin Roosevent and War-Criminal Johnson, the Saint of the Civil Rights Movement. America will either go bankrupt, or else have tax-rates that will make life in Communist Roumania look like a picnic.

    But since you are perceptive, why not try your own blog? The whole world is watching. — Silverwolf

  10. lobobreed Says:

    Sorry hpx83. We were forgetting you already have a blog at The wolfen community will be reading it. — Silverwolf

  11. hpx83 Says:

    Any opinions on my attempts at wisdom will be greatly appreciated. Sadly I will probably not post for a couple of days, life is calling and all that.

    Look forward to more conversations,

    // hpx

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