Posts Tagged ‘Hayek’

Socialism Crumbleth, Part 2: The Keynesian’s Final Hour

May 8, 2010

The Keynesian’s final hour has begun. The financial carcinoma that was instituted into the world monetary system with the triumphs of Socialism under Roosevelt, Mussolini and Hitler, has finally spread throughout the entire body of Capitalism until it is eating it alive. Just as Nobel Prize Winner Frederic Hayek predicted in his 1946 “The Road to Serfdom” (written in 1943), any amount of Socialism must finally spread and bankrupt the entire system, and those accurate predictions of Hayek’s are being so beautifully played out in Europe, that bastion of Socialist “Social Democracies”. Exactly. “Social Democracies”, without Jefferson’s fierce defense of property Rights, will inevitably descend into chaos, as they spend themselves into bankruptcy. It happened in Rome 2000 years ago, and it’s happening in Greece and Germany right now. The exact same phenomena, since the psychology of people vis-a-vis money never ever changes. The attitudes of a man were exactly the same towards capital two millennia ago as they are today in the worker who takes his money to the supermarket, and tries to shop carefully. And since these  economic attitudes and psychological “laws” are exactly the same on an individual basis for all people, across all ages, it follows that the economic herd behavior of Mankind will likewise be the same irregardless of time. We may have computers and iphones, but psychologically we are no different from the Roman middle-class patrician who wanted to grow wealthier but was afraid of poverty.

So Euro-Socialism is crashing and burning, and that even with the U.S. footing over $100 billion a year in defense costs that Europe doesn’t have to provide for itself. Euro-Socialism evidently also entails ripping off the American taxpayer, for now we hear that the Frog-German Axis wants America to bail out their grand visions of Euro-Socialism by having the IMF give, called loan, them the money, instead of Congress. It sounds more antiseptic if the IMF does it, and the Prez can go on TV and tell us how we have to help stabilize our Euro-brethren with the money we don’t even have for our local police protection.

Yes, let’s bow down and give our all to the Europeans. After all, they deserve it, and we don’t. Even though we’ve micturated away a Trillion dollars (at least 10 times 100 Billion) over the last decade alone (not including the annual interest on that amount) defending them, so they could spend the money on all kinds of sugar-coated subsidies, which the slaving class in America goes without but must pay for. No, we have not sacrificed enough, for we are Capitalists (supposedly) and therefore wicked, while they are Socialists (evidently) and therefore sacrosanct. And therefore deserving. So put a copper 5-Rothbards coin in our collection can for Luxembourg.

It’s interesting how the calmsters were quick to blame yesterday’s biggest drop in 23 years on a trader error,  for what is predicted by Elliott wave theory is precisely a very violent wave down in this phase of the wave pattern. Yesterday’s 1000 drop, the worst in 23 years is right in line with that theory, but those who think that there are simple rational explanations for all economic events, and not mass swings of psychology and mood, had to have a plausible reason for the plunge. Yet, if hitting a wrong button or typing in a wrong number can derail an entire system, the system would probably be crashing dozens of times a day, given how many incorrect orders, or buys where sells were meant, occur by obsessed, harried, and scared traders. And what of the margin mechanisms that supposedly won’t let a trader sell contracts or stock than he has not the margin for. That should have blocked such a mistake from occurring right off. No, another bromide for the twice caught bulls. They’ve forgotten their lesson after only 14 months. Greedus resurgits. (Is that really Latin?)

And Keynesian Socialism may find itself fatally gored this weekend by a Northern Rhino that will bring about the West’s Keynesian failure as the state of North Rhine-Westphalia votes on the Merkel miracle of Greece’s delivery at the cost of depressed Germany. They think they are depressed because of Merkel, or some politician, or even the Greeks, but they are depressed because Socialism by its inherent logic always ends up spending itself into poverty, and like amphetamines, while the addict is high, he’s got his energy and euphoria, but one day his bodily reserves run out, and then he crashes miserably. And Europe has been running on the amphetamine of Socialism for decades. Time to pay the piper, and have your rotten teeth fall out.

Of course, Europe should bite the bullet, even with their gums, and devalue their currency back to the Socialist level it warrants, which we’d wildly guess right now would be about 90 cents, but of course, that is to declare Socialism a failure, and it will take a few more years, or months, (or days?) of suffering for that satori to rain down upon the People’s consciousness.

Tricky Trichet has tricked them again, just as Tricky Dick did in 1973 when he committed the crime of closing the gold window. “Believe and you’ll be disappointed” goes the old saw.

A lot of Europeans, bond holders and stock bulls believed. And the price of believing in Socialism is …

Hooooooooooooooooooooooooowwwwwwww! — Silverwolf


“The Freeman” For Free, Man: A Libertarian’s Dream

July 16, 2009

Silverwolf has been exposing his brain neurons to a new set of those black little smudges, arranged in conventionally fixed orders, that the humans call “words”. These words make up back-issues of “The Freeman”, a Libertarian periodical that published from the mid-50s to the early 60s which the Mises Institute has just put online for the public’s perusal. It was incredible to read the criticisms of President Eisenhower, as a born-again New Dealer, and the Republican Party as not an opposite to the Democratic big-government statists, but a collaboration outfit. It reminded one exactly of the criticisms Presidential-candidate Ron Paul made of his own party during the campaign of ’08. (That’s 2008, for those of you reading this post centuries and millenia from now.) Many were the writers bemoaning the demise of Capitalism before the onslaught of the growing Socialist State, and a few months after Eisenhower’s inauguration, that were already saying that this was just a Truman dressed as General Eisenhower. Many more predicted an inevitable collapse of America now that Socialism has been institutionalized, not only in government, but in the mindset of the masses of Americans. Thoroughly brainwashed, they maintained, the vast majority took without critical thought the axioms of the New Dealers. One finds the exact same mentality today, methinks.

Did those early anti-Statist haters of Communism and Nazism think that it would take 54 years for their prognostications to come true? Methinks not. But now, before our eyes, we are watching the de-rollment of that final descent into the chaos of Socialism, and unfortunately we have a very charismatic President who, knowing he is bright, thinks he is always right, and who has mainly made a living from the public coffers, teaching law and serving in Congress. Unfortunate America probably needs a small businessman as President, as broadly read and charismatic as Obama, but solidly in the tradition of Austrian Economics, amalgamated to the Old Right’s love of the Jeffersonian Bill of Rights and Individualism,  so she can be lead by someone who has had to earn every penny they have through the Free Market, and that after surviving income taxes reaping 25-50% of the fruits of their labor. But college professors at public universities, who know that their bread is buttered by the coercive confiscation of somebody elses wealth, because someone decides that “public universities” are a right and a good, have never had to survive in a Capitalist market from day to day. Once they have tenure, they are on easy street, as long as they show up every day, smile, and don’t get angry at anyone in public. And this, despite centuries of having multitudes of private universities and colleges, who must compete with one another for the fees, and pay their professors according to the quality of their work, depending on how much revenue their lecturing can willingly bring in.  There is no need for “public universities”, because without regulation, private schools will come about when those who have a passion for it, and see a profit in it at the same time, set them up. (However, Silverwolf would agree with Jefferson that their might be a place for government’s trying to non-coercively insure that every citizen of the Republic learn how to read, so that at least they can read the Constitution and Bill of Rights. But nowadays, this could more easily be done through the internet, instead of setting up this abhorrent Behemoth of public schools, that provides welfare jobs to the mostly mediocre teachers and staff, while stifling and boring to death the youth of America as they are brainwashed into group-think, and while taxing local property owners, many retirees living on pensions, outrageously.)

Yes, it’s a shame that this highly read, polished, and charismatic President should have and believe incorrect principles of economics. But the Public University does that to the mind because, if its “raison d’etre” were to be examined, it would have to dissolve itself immediately on the grounds of immorality. Yet it purports to exist based on principles of morality. And here we have the essence of its hypocrisy.

The President really needs to take a weekend off from stewarding America and hit the books, like Hayek’s “Road to Serfdom” or Mises’ “Interventionism”. Perhaps it will hit him what he is doing wrong. But that would necessitate his repudiating the way he made a living for years, before becoming President. Yet without the experience of being a wage slave or a small businessman in America, having to cope with all the problems thrown at you by Big Government that dissipate so much of the life energy of Americans, Silverwolf doesn’t think these books would get through to him. Many who have had their Rights trampled on by racists and group-image perpetuators, seem to forget that immoral economics also violates the Rights of everyone. Rosa Parks and the American small Capitalist have a lot more in common than President Obama seems to realise.

But for those of us sick of the maudlin group-speak of the mainstream media, brainwashing the public 24-hours-a-day through commercials and news reports, the ragings of the writers at “The Freeman” penned 55 years ago, are as fresh as this morning’s forest air, at least to us Libertarian wolves.

Hooooooooooooooooooooooooowwwwwwwww! — Silverwolf