Category Archives: Murray Rothbard

The Psychopathic Machine: How Modern Finance Learned To Live Without Conscience

Article by Mark Keenan.

Excerpts:

Debt-based money ensures that this pattern is permanent. Because all money is issued as interest-bearing credit, new debt must constantly be created to service the old. If credit creation slows, defaults rise and the political class panics. Hence the endless call for “growth,” however hollow, and the refusal to confront the costs it imposes on both nature and society. A system that must expand or die will behave like a shark—efficient, unreflective, and indifferent to collateral damage.

[. . .]

The late psychologist Hervey Cleckley defined the psychopath as a person who “knows the words but not the music.” Our financial order knows the language of prosperity but not its meaning. It can model markets to six decimal places yet cannot tell the truth about who benefits and who pays. The spreadsheets are perfect; the souls are missing.

As I examine in the book The Debt Machine, this isn’t about hating bankers or glorifying poverty—it’s about recognizing that the very architecture of money has been built to reward the traits of a machine: speed, aggression, and detachment. Unless we redesign that architecture to reward stewardship instead, we will keep mistaking the cunning of greed for intelligence or wisdom.

This is what it means to return from illusion to reality — to build an economy that serves life rather than consumes it.

Sound money, honest credit, and transparent risk are not nostalgic slogans; they are the minimum conditions for sanity in an economy. Until we recover them, we will remain ruled not by men of reason, but by a system that acts—coldly, efficiently, and predictably—like a psychopath.

Playing with Fire: Money, Banking, and the Federal Reserve

Video by the Mises Institute.

The Fed has been the source of booms, busts, and the ongoing impoverishment of Americans since the Fed’s founding.

This is why a new, critical look at the Federal Reserve is needed, and why the Mises Institute is now happy to bring you this new documentary on the Fed.

Playing with Fire provides a look at how the Fed uses its expanding power to damage our economy, increase inequality, and to impoverish ordinary Americans. The film also looks at how much the Fed has expanded its own power since the Financial Crisis of 2008.

Featuring interviews with Ron Paul, Tom DiLorenzo, Joseph Salerno, Mark Thornton, Jim Grant, Alex Pollock, and Jonathan Newman, Playing with Fire explains what the Fed is, where it came from, and why it is so dangerous. Perhaps most importantly of all, Playing with Fire shows why we need to end the Fed altogether.

The Ruling Elites Create an Orwellian Reinterpretation of Human Rights

Article by Wanjiru Njoya:

Ludwig von Mises depicts the aim of revolutionary socialism as: “to clear the ground for building up a new civilization by liquidating the old one.” One of the main strategies in liquidating a civilization involves dismantling its legal and philosophical foundations. This role is fulfilled by activists who embark upon “sabotage and revolution” by subverting the meaning of words: “The socialists have engineered a semantic revolution in converting the meaning of terms into their opposite.”

George Orwell famously called this subversive language “Newspeak.” Peter Foster describes Newspeak as “a sort of totalitarian Esperanto that sought gradually to diminish the range of what was thinkable by eliminating, contracting, and manufacturing words.”

Mises explains that dictators express their ideas in Newspeak precisely because, if they did not, nobody would support their schemes:1984 (Signet Classics)George OrwellBest Price: $1.49Buy New $3.58(as of 10:53 UTC – Details)

This reversal of the traditional connotation of all words of the political terminology is not merely a peculiarity of the language of the Russian Communists and their Fascist and Nazi disciples. The social order that in abolishing private property deprives the consumers of their autonomy and independence, and thereby subjects every man to the arbitrary discretion of the central planning board, could not win the support of the masses if they were not to camouflage its main character. The socialists would have never duped the voters if they had openly told them that their ultimate end is to cast them into bondage. (emphasis added)

In the proliferation of Newspeak, the reinterpretation of “human rights” has proved to be one of the most powerful weapons of sabotage and revolution. Activists have seized control of a vast empire of international law, NGOs, and human rights charities with a global network of staff who monitor respect for “human rights.” They wield their significant influence in the human rights industry to undermine human liberty by redefining the meaning of “human rights” to denote the antidiscrimination principle. Under the banner of equality and nondiscrimination, they restrict free speech and other human liberties. In other words, the doctrine of “human rights” now denotes the precise opposite: the destruction of human liberty.

The “human right” to non-discrimination

Human rights no longer mean what many might suppose: the right to life, liberty, and property. The vast corpus of human rights in international law has been categorized by Karel Vašák into three: civil-political, socio-economic, and collective-developmental. These categories are said to encompass negative rights (things the state must not do, such interfering with life, liberty, or property), positive rights (things the state must do, for example, provide citizens with food, shelter, education, healthcare, etc.), and rights of solidarity between citizens such as wealth redistribution through social welfare schemes and equal participation in economic progress through measures such as the minimum wage or equal pay.

Human rights organizations monitor progress against these categories and ensure that the legal system works in favor of socialist goals and against liberty. For example, the United Nations human rights program educates the public on the need to eradicate “hate speech” and interprets “equal protection” of the law, as a fundamental human right, to mean protection from hate speech. The UN says:

Addressing hate speech does not mean limiting or prohibiting freedom of speech. It means keeping hate speech from escalating into more something more dangerous, particularly incitement to discrimination, hostility and violence, which is prohibited under international law.

From that description, it can be seen that the UN takes a concept which is well-established in the criminal law, namely, prohibiting incitement to violence, and links it to notions of incitement to discrimination and incitement to hostility, which have never before been recognized as crimes. They annex discrimination and hostility to the charge of inciting violence because, if they did not, it would be immediately clear to everyone that criminalizing “discrimination” or “hostility” amounts to nothing less than Newspeakian crimethink.

The meaning of human rights

In his article, “There’s no such thing as Human Rights,” the British journalist Peter Hitchens argues that,

Human rights do not exist. They are an invention, made out of pure wind. If you are seriously interested in staying free, you should not rely on these flatulent, vague phrases to help you.

They are in fact a weapon in the hands of those who wish to remove your liberty and transform society, though this is probably an accident. It is only in the past 50 years or so that radical judges have realised these baseless declarations can be used (for example) to abolish national frontiers or give criminals the right to vote.

In that context, Hitchens is referring not to the ancient liberties protected by Magna Carta, but to the Newspeakian rights now enshrined in human rights instruments, such as the UN Declaration of Human Rights and the European Convention on Human Rights. Human rights have been transformed into wooly concepts which merely reflect political and partisan demands.

Murray Rothbard avoids the ambiguity surrounding the meaning of human rights by defining them as property rights. In the Ethics of Liberty, he explains:

…the concept of “rights” only makes sense as property rights. For not only are there no human rights which are not also property rights, but the former rights lose their absoluteness and clarity and become fuzzy and vulnerable when property rights are not used as the standard.

In the first place, there are two senses in which property rights are identical with human rights: one, that property can only accrue to humans, so that their rights to property are rights that belong to human beings; and two, that the person’s right to his own body, his personal liberty, is a property right in his own person as well as a “human right.” But more importantly for our discussion, human rights, when not put in terms of property rights, turn out to be vague and contradictory, causing liberals to weaken those rights on behalf of “public policy” or the “public good.”

Thus, the Rothbardian interpretation of human rights denotes the universal right to self-ownership and private property that vests in all human beings.

Bureaucratic reinterpretation

In practice, the meaning of human rights is subject to interpretation by courts or other law enforcement officials. Therefore, human rights ultimately mean only what they are interpreted to mean by law enforcement, not what they may theoretically, politically, or philosophically. Lowell B. Mason, an attorney and former chair of the Federal Trade Commission explains the significance of bureaucratic interpretation by observing wryly that:

When in private practice I never told clients what the law was; I always told them what the bureaucrats thought the law was… The legality or illegality of what you do often depends not on the words of a statute enacted by your elected representatives, but on the state of the collective liver of a dozen anonymous bureaucrats.

Being well aware of this, the goal of activists is to ensure that “human rights” are interpreted so as to advance their goals. This explains the concerted efforts to depict “hate speech” as a human rights violation. In this way the commitment of states to protecting “human rights” is transformed, through the prism of the antidiscrimination principle, into an edict to prohibit hate speech. The word “hate” is interpreted to mean having the temerity to disagree with socialists, and similarly, the word “equality” is interpreted to mean wealth redistribution to achieve equality of material conditions.

Mason explains how it is possible for bureaucrats, charged with law enforcement, to reinterpret the Constitution to suit whatever they think the law ought to achieve. No matter how carefully a law is drafted, it will always require interpretation, and this is where the bureaucrats strike as they purport to be applying the “evolving” meaning of the Constitution. Mason explains:

“Of course,” he will reassure you, “the Constitution still stands as a bulwark to liberty but it is a growing instrument that adapts itself to the times, and while it has not been repealed or amended, it has necessarily been reinterpreted so that due process (as it was known in the past) no longer unduly encumbers the administration of the law.”

Through Newspeak, the Constitution itself has been reinterpreted, enabling socialists to claim that they support free speech and also support the prohibition of “hate speech.” Mises explains that this subverts the concept of freedom into its very opposite: “Freedom implies the right to choose between assent and dissent. But in Newspeak it means the duty to assent unconditionally and strict interdiction of dissent.” In that sense, the concept of “hate speech” is not compatible with free speech. In denoting any dissent as “hate,” it is the very negation of free speech and freedom of thought. Through Orwellian Newspeak, ordinary words like “liberty,” “justice,” and “equality”—values that most people would support—have been subverted and harnessed to promote socialism.

The Role of Intellectuals in Society

The concluding words in Murray N. Rothbard‘s book “The Case For a One Hundred Percent Gold Dollar” (pp. 71f):

There is no gainsaying the fact that this suggested program will strike most people as impossibly “radical” and “unrealistic”; any suggestion for changing the status quo, no matter how slight, can always be considered by someone as too radical, so that the only thoroughgoing escape from the charge of impracticality is never to advocate any change whatever in existing conditions.
But to take this approach is to abandon human reason, and to drift in animal- or plant-like manner with the tide of events. As Professor Philbrook pointed out in a brilliant article some years ago, we must frame our policy convictions on what we believe the best course to be and then try to convince others of this goal, and not include within our policy conclusions estimates of what other people may find acceptable. For someone must propagate the truth in society, as opposed to what is politically expedient. If scholars and intellectuals fail to do so, if they fail to expound their convictions of what they believe the correct course to be, they are abandoning truth, and therefore abandoning their very raison d’etre. All hope of social progress would then be gone, for no new ideas would ever be advanced nor effort expended to
convince others of their validity.

What Has Government Done to Our Money?

Book by Murray Rothbard, preface by Guido Hülsmann

I can name maybe half a dozen books (including the Bible) which have been pivotal to my intellectual development. What Has Government Done to Our Money, by Murray N. Rothbard, is one of them. Here‘s the Wikipedia page on the book.

I cite in the following excerpts from the preface by Professor Jörg Guido Hülsmann.

What Has Government Done to Our Money? is an outstanding example of Rothbard’s creative mind at work. Since it was first published in 1964 .[sic! Wikipedia and other sources say 1963], it has appeared in four editions in English, and has been translated into many foreign languages. It has served as a primer on monetary theory for all its readers. In fact, it is probably the most brilliant introduction to monetary theory ever written, presenting both the foundation of monetary theory and exploring the role of the state in the degeneration of monetary systems. The book is suitable not only for economists, but also for non-academics and all people interested in the subject. It is, like all of Rothbard’s works, a timeless and powerful statement. It leaves the reader with a completely new way to think about the relationship between money and state.

Here the elements and the functions of a free monetary system are presented with brevity and clarity. Rothbard shows how and why gold and silver are used as money on the unhampered market. Money originates neither from social compact nor government edict, but as a market solution of the problems and costs associated with barter. All other tasks usually considered monetary duties of the state — from minting to the definition of the monetary units to the precise form money will take — are left to private entrepreneurs on the unhampered market.

Where is the place of the state in this picture? Doesn’t the state have to guard our money? Doesn’t it have to adjust the money supply and supervise the banks? Rothbard’s answer to these questions is a clear no. Government intervention does not protect money at all but rather threatens its integrity. Government interference leads to more abuse and more instability than the free market would otherwise have tolerated. Instead of solving problems, intervention creates them. Instead of order they bring chaos and economic upheaval.

For Rothbard, the central issue is not whether monetary policy should stabilize the price level or the money supply; it is whether there is a role for the state in the monetary system at all. On this question, Rothbard answers decisively in the negative. Entrusting the money to the state is a grave error. It opens door and gate for totalitarian control of the society by interest groups closely connected to the state apparatus. The consequences are economic and monetary crises, and a relentless decline in the purchasing power of money. Rothbard illustrates this impressively with a short history of the monetary collapse of the West.

Rothbard’s chronicle of decline ends with the breakdown of Bretton Woods and a prediction that the future portends continued exchange-rate volatility, debt accumulation, inflation, crises, bailouts, and a political drive to further centralize control of money and credit. This prediction turned out to be a good summary of the monetary events of the last quarter century. The world economy adopted a de facto dollar standard, a managed monetary integration came to Europe, and crisis has followed crisis in Asia, Russia, Mexico, and Central and South America, along with exploding deficits and debts in the United States. Undoubtedly many more will come our way.

This new edition includes a detailed reform proposal for a 100% gold dollar [see online here], an essay first published in 1962, the same year that Man, Economy, and State appeared and two years before What Has Government Done to Our Money. That it was written a decade before the last vestiges of the gold standard were abolished does not diminish its power as a proposal for reform.

Would Rothbard’s plan work? Certainly. The limits are due not to its economic viability but rather to the same forces that keep all radical proposals for freedom at bay: political barriers and ideological opposition. Should the conditions ever become ripe for pure liberty again — and Rothbard was ever the optimist — this essay will serve as an outstanding blueprint.

Today all nations face a choice between sound money and continuing monetary depreciation and/or monetary crisis. Sound money, Rothbard shows, means the enforcement of strict separation between the state and money. Rothbard has shown that the world’s party of liberty can embrace what is usually said to be an impossible ideal: an international money protected against the arbitrariness of the state. His analysis and prescriptions deserve even more attention today than when they were first written.

Jörg Guido Hülsmann

Angers, France

April 2005