Socialism has cocked up again, as it always does. What's the answer? More socialism! Although there are many out there who know that this is utter nonsense, there are still too many "believers in freedom" who think that the current crisis is down to capitalism and that the banks represent the purest of the pure capitalists.
If only we had a 3-D chamber filled with an artificial intelligence projection of Uncle Murray Rothbard to correct these mistaken fools. He would tell them, in his spiritual projection, that the banks are the most socialist part of the free market, and are perpetually bankrupt. It is only government socialist favour that keeps them running and whenever the real free market ever gets close to catching them out, as it has recently, it is only further government favour which stops this permanent bankruptcy from destroying them.
In any other industry, let us say the rapidly burgeoning personal warehousing industry, it would quite rightly be considered totally illegal if I were to warehouse some furniture for a period, while I took a two year contract in Dubai, and the warehousers were to "lend" out my furniture for a rental fee in the hope that the borrowers returned it in good nick before I got back. Bankers, however, can do this, with our money, because they have bought this privilege from Leviathan. In return, they must obey Leviathan's rules, and most importantly of all, they must lend Leviathan whatever money Leviathan desires for its wars and its welfare programs.
This was at the heart of Alistair Darling's recent Freudian slip, "if we let the banks go bust, they will be unable to lend anything to us". The "us" he was talking about was the British government, rather the people of Britain. This inability for governments to borrow on the bond market is what governments are running scared of and why they refused to let the most profligate banks go bust. Because they knew that the day of reckoning would come too close for comfort, with an end to fiat currency and easy government borrowing following closely behind. Nobody in the mafia wants to tax their serfs too directly, because they would have immediate tax revolts on their hands. It is far easier to push the spending bills into the future via the government-bank-bond-borrowing scam. If you were immoral, would you give up a credit card where someone else keeps having to pay the bills and who can't figure out where the bills are coming from?
It is therefore our mission as Austrians, and believers in freedom, to keep ramming home this message, that this entire mess is down to government, government privilege, and democratic socialism, rather than freedom, liberty, and private property capitalism. It is disheartening, I know, but we must keep plugging away. Otherwise we will let these idiots keep wrapping our lives, and the lives of our children, in downwardly spiralling socialist/fascist chaos.
Hence, my latest post on the Torygraph's comment pages:
Posted by Jack Maturin on October 14, 2008 1:06 PM
Posted by Neil Jones on October 14, 2008 11:29 AM
Neil, it's getting to the point where it's hardly worth bothering trying to point out the lack of the Emperor's clothes. Most of the people here aren't interested in hearing your accurate analysis. They just want to blame someone, and most have so much socialism ingrained within them, that they just cannot bring themselves to blame the government.
The terrible shame of it is that we cannot divorce ourselves completely from these people and let them sink in the morass of their own bone-headed socialism. Alas, they will try to drag us down with them, so I suppose we must persevere and keep repeating ourselves until we are blue in the face. So let me try again too (though it will almost certainly do our cause no good.)
This is all the fault of Brown, Bush, the Federal Reserve, the Bank of England, and every other politician and central bank in the world.
To puff up the reputations of their politicians they have been flooding the world with easy credit for decades now, and have destroyed the value of money. What we are now seeing is the inevitable consequence. Yes, the banks can take some part of the blame because they have been the willing servants of the counterfeiting politicians, buying up government bonds and using government-granted fractional reserve rights to issue yet more easy credit.
But all of this has been managed and strictly regulated by socialist planning boards (a.k.a. central banks) and it is to their door that we should all be running with pitchforks and torches, demanding recompense.
That we are now turning to the same people who deliberately caused this mess, to agrandize their power, is an indictment upon us as to our ongoing stupidity. Their answer is for us to heap even more pelf and power upon them, and to make us even more socialist, when it is financial socialism that has caused this disaster and will continue to make this disaster get worse. Check out the fifth commandment in Karl Marx's Communist Manifesto. Herr Marx is adamant that socialism will not be achieved until the state has taken over the banking system. His disciple, Gordon Brown, is now close to achieving that goal.
We ought to be ashamed of ourselves, especially those of us who support his measures whilst also preaching a belief in freedom. We are heading into a dark age of socialist totalitarianism and chaos. Let us hope that it is such a disaster that it ends quickly. But I fear socialism will once again destroy a myriad lives first, before we can excorcise this ravenous beast now that it is among the chickens that have come home to roost.
Well Neil, I'm trying. Though I don't think it will have done much good. Please keep up the good work. Personally, I'm beginning to lose my morale in the face of this blind socialist orthodoxy. But as Ludwig von Mises used to say, "Tu ne cede malis" - Never give in to evil.
UPDATE: Further post added to the Torygraph thread:
Posted by Jack Maturin on October 14, 2008 5:40 PM
davey on October 14, 2008 4:25 PM
"Neither I nor anyone else has a bloody clue what has been going on, what is going on or what is the remedy for all this."
Professor George Reisman knows what's going on. He even has a solution.
Who is George Reisman? Arguably the greatest economist alive today, perhaps second only in recent history to the late great Murray Rothbard, and a fellow student, along with Uncle Murray, of the greatest economist who ever lived, Ludwig von Mises (though I'll accept Aristotle or Thomas Aquinas if we can discuss it over a large G and T).
Check out the following link if you want to find out what we should do, taking you to an article he wrote back in March predicting this entire crisis, what our leaders would do, why it's the wrong thing to do, and what the right thing to do is: link