Philosophical similarities between modern liberalism and conservatism and brutal communist regimes

Most of the public think that modern conservatism and liberalism have nothing to do with the regimes of Stalin and Mao.  This is simply not true.  There may not be mass death in the United States and Europe by brutal governments but, philosophically there are many disturbing parallels.  This can most obviously be seen in the modern left by many of the modern liberals portraying communist dictators as revolutionary heroes.   This can be seen by the popularity of Ché and Hugo Chavez within the modern left.  If any of these people do things that are morally repulsive, the modern liberal gives them a pass and says that such behavior is “unfortunate but the ends justify the means and who are we to judge anyway.” No matter how many people are brutally killed by communists, the left never sees the ideology of collectivism and egalitarianism at fault.  It was simply that the wrong people were running things.  Many believe that if Trotsky took over rather than Stalin, Soviet Russia would have been some kind of paradise (this includes the founders of the neo-conservative movement and the National Review who were all former Trotskyists to include Irving Kristol, Bill Kristol’s father.)   The ideology is never questioned because it is considered a moral axiom that all people should be equal.  This idea of equality goes against the reality that each human is different. It is also against human nature.  So what does the modern leftist question?  Certainly not the moral righteousness of his cause! No, certainly not.  Egalitarianism is beyond reproach.  Reality must therefore conform to their ideas.  Thus, it is reality that must be at fault.  If you think that this is an exaggeration, ask a leftist (or a neocon) whether the universe is understandable by the human mind and concrete or whether everything is relative and we truly cannot understand anything.  They will tell you that the universe is relative and  1+1 may equal something else besides two; that we simply can’t know anything for sure.  This is obviously a contradiction because this simple statement, that the universe is relative, is concrete, implying that knowledge is possible.   So what happens at this point?  Does the modern egalitarian reject his philosophy because of the obvious flaw?  No, of course not.  His reasoning is not wrong.  Reason itself is wrong and it must be modified to fit his moral axiom.  In this way, every egalitarian at some level knows that his ideas go against reason itself.  So there is a new oppressor on the scene.  It is not just the capitalist class oppressing mankind but, reality and reason itself are oppressors as well.   To such a degree, reason and reality are rejected for a “new kind of reason” where two contradictions could now exist.   So the old ideas of the shaman and the mystic are revived in the new garb of secular Marxism.  The idea was that our reality was just a shadow for some kind of super reality that was unknowable like Plato’s famous short story about the cave.  Aristotle rejected this and said that the universe was knowable while Plato and his followers claimed that the universe was beyond the grasp of human beings.  To Plato and his followers, science was the study of appearances while to Aristotle and his followers science was the study or reality and truth.

Ever since the Greeks, all philosophies have either been Aristotelian in nature or Platonic in nature.  When looking at history, the times in which Aristotle had dominated a culture were ages of tremendous progress in all fields. Cultures that believed in an Aristotelian universe accomplished great things in physics, human rights, political science, economics and every other aspect of human knowledge. The renaissance and the enlightenment were ages when Aristotle and reason were the dominant philosophies. During all this, Plato and his ideas were always in the background waiting for their opportunity to return.  The old Platonic philosophy of self doubt and an unknowable reality began to rise again in the middle of the 19th century and eventually completely took over by the early 20th century.  Plato and his philosophy that reality does not exist except in some other reality began to dominate.  Reason was rejected.  There was no such thing as truth any more.  The Nazis believed in racial truth, the communists believed in proletariat truth as opposed to the bourgeoisie truth.  One thing was certain for all these groups, reason was to be rejected as well as any idea of singular truth.   When Platonic philosophy rules, it results in mass death and humanity’s loss of confidence in itself.

The “Black Book of Communism” describes the crimes that the communists committed in the 20th century.  The crimes were just as evil as Hitler but, it was done on a scale much larger than the Nazi sociopath could have even dreamed.   I have not read the whole book but, what I have read is sickening and disturbing to the extreme.  Americans today may think that such things can never happen here, but this is the same thing that every other culture said before they were led to the concentration camps and the ovens.   I don’t think it will happen here either. But, it’s not because I’m complacent like most people. It’s because America has enough old classical liberal traditions deeply embedded into it’s culture. These have not been uprooted by the intellectuals yet and as such, will keep these occurrences from ever happening.  If the intellectuals ever do succeed and uproot the last vestiges of the classical liberal tradition, these evils will certainly happen here.  Not because collectivism and egalitarianism sometimes accidentally result in mass genocide but, because it is fundamentally necessary to the philosophy.  Egalitarianism itself implies the dehumanization and mass death of human beings.

Here is a brief article on mises.org about the “Black Book of Communism” and its similarities to the modern liberal and conservative movements.

Austrian Business Cycle Theory

It is critical for everyone to understand Austrian Business Cycle Theory because it affects everything. The main idea is rather simple while some of the details are a bit more hard to understand.  Austrian Business Cycle theory simply states that  booms and busts exist and that they are not unpredictable market phenomena. They are in fact very predictable because they are caused by an outside agency (central banks in most cases).  This allows the average person to avoid massive monetary losses by allowing them to identify bubbles before they pop such as the dot com bubble and the housing bubble.  This also allows the average person to make huge profits because they can identify the next bubble at the ground floor and place their money there before the public enters that particular bubble sector in mass.

Here is the famous Peter Schiff video where he predicts exactly how the crash of September 2008 happened (started in sub-prime, spread to the rest of the housing sector and then finally to the financial sector).  My favorite part is how he takes on Art Laffer (creator of the famous Laffer Curve which absurdly proposes that lower taxes bring in more tax revenue; this idea is actually believed to be true by people you may have heard of such as Sean Hannity.) Laffer is also one of the most well known of the Reagan era supply side economists that act like they are free market but, as demonstrated in this video, are actually just soft keynesians.

 

Here is an explanation of the Austrian Business Cycle from an academic perspective:

Here are some more brief versions:

 

 

Can Gold and Silver Keep Going Up?

Of course they can.  People told me that silver was a bubble at 14 USD an ounce (the same people who never saw the housing bubble or the dot com bubble).  It was at 40 yesterday and dropped to 36 today.  This is a great buying opportunity. Everyone should have at least 10% of their investments in physical precious metals, not stocks.  I have much more than that because I intend to make spectacular profits in the future but, 10% should be a safety net that everyone should have just to protect themselves.

Gold and Silver peaked in 1980 and then there was a bear market for twenty years. The reason that gold and silver dropped was Paul Volcker was able to push interest rates into the stratosphere, stopping the the 1970s inflation in its tracks.  Not only has Ben Bernanke said that he will keep interest rates low for years in the future (making the bust that much worse, see Austrian Business Cycle Theory) but, even if he wanted to bring interest rates up he would send the economy into a depression much worse than the one that Volcker caused in 1981.  This is politically unpalatable, the election losses for both parties would be a blood bath.  Therefore, the Fed tries to keep the unsustainable path of the inflationary boom going through even lower interest rates; simply kicking the can down the road to future politicians.

This is the first time in history that massive inflation and low interest rates have not created an artificial boom.  Alan Greenspan was able to do it after the recession of 1991 and the dot com bust.  But, no longer is this a possibility.  This is a bad sign, it implies that monetary expansion has reached its limit and the depression that the United States has been putting off for more than a decade is coming.  However, instead of it being the small storm that it would have been ten years ago, it is now going to be a hurricane that is going to wipe out the entire middle class, retirees, and anyone trusting in government promises.

Remember that when Volcker pushed interest rates up in 1981, the United States was the largest creditor in the world.  Now it is the largest debtor.  The United States had a strong industrial base but, now it has all been shipped overseas due to the dollar’s reserve status giving it artificial buying power.  Simply put, an interest rate hike, although healthy in the long term, would rock our economy to the very core due to the 20 years of malinvestments that would have to be liquidated and the massive economic structural imbalances that would have to be corrected.

This means that gold and silver have a long way to go before this thing is all sorted out.

The Nature and the History of Money

I have a bachelors degree in history.  But, after doing some research I realized that I was not taught anything about the history of money and, to be quite honest, I didn’t even really know what it was fundamentally. Money is literally the lifeblood of civilization.  When it is disrupted or tampered with, misery results.  Although money is so important to our daily lives, we often think little of it.  After all, it is always there and it can always buy stuff, right?  Monetary history is probably the most important history of the United States.  Nothing today has shaped our country more than money has.  It has been the topic of almost every presidential debate from George Washington until World War II. Each political party and philosophy had its own opinion on the nature of money. Thomas Jefferson, Abraham Lincoln, William Jennings Bryan all discussed money during their presidential campaigns or while they were in office. This history is almost completely lost on the American people, though it was not too long ago when it was regularly discussed by the public. Only in the last 50 years has it become taboo to talk about the nature of money itself.  But this social norm is changing.  Here are some good resources to start your study of money’s history.

 

All of Rothbard’s books are excellent at describing the nature of money.

www.mises.org/resources/6131/Case-for-a-100-Percent-Gold-Dollar-The

www.mises.org/resources/617/What-Has-Government-Done-to-Our-Money

A History of Money and Banking in the United States

 

Money Banking and the Federal Reserve (this is a good video from the Mises Institute)

 

 

 

The Coming Monetary Crisis

There are a number of documentaries on line that will help outline the basics of what the United States will be facing in the future. The ones below have an Austrian perspective of what happened, not the usual stuff you hear about regulation. There is one player that has caused all of this, the Federal Reserve.

Overdose

 

Melt up

 

 

 

Austrian Business Cycle

Austrian Business Cycle

Tom Woods explains the Austrian Business cycle theory to a group of students in Boulder.

I like this speech because Tom is explaining the Fed to economic students that are mostly skeptics of Austrian Business Cycle theory.   This speech is also enjoyable because it assumes that the audience has some understanding of economics above your average citizen.  Tom Wood’s assumption that the audience has intelligence allows him to skip past the more basic economic ideas and get right in to the thick of it.

http://www.youtube.com/watch?v=541bajR4k8g

The Mission of FreedomOmaha.com

First and foremost I am here not to make any political argument. I am here to make a moral one.  People often avoid talk of certain issues because they believe these issues belong in the political realm and are not a topic for polite conversation.  After all, “many people have different opinions and all opinions have equal merit and should be tolerated and respected.”  I am here to tell you this is wrong, dangerously wrong.  A person should always be respected and have the right to speak their mind but, this does not mean their argument has equal value.  There are truths in the universe. For an entire culture to deny such truths and work against the natural order of man’s nature can only lead to complete destruction. The philosophy of pragmatism has dominated American thought for the last hundred years and has led to disastrous consequences.  Civilization is rotting from the inside as many people can observe today, and it will become much more obvious in the near future. The rot is just not economic or social.  It’s philosophical.   The very ideas that human beings hold dear are self destructive for the individual and suicidal for a civilization. To preserve our own lives, every human being must become a man of ideas. The intellectual class that dominates both sides of the political spectrum has led us to a dark wasteland. The intellectual class now looks upon the abyss before them with complete despair.  They thought they were creating paradise but instead they have created the worst kind of hell.  A hell that has no doors or windows.  A hell with no memory of the past and no future.   A hell that man’s senses cannot register but, is always hauntingly present.   A hell that destroys man’s mind, not with something but with nothing.  The blinds must be opened.  To escape it, man must first know that there is something else outside the window.  The light must be shined upon its wretchedness and only then can he walk through the door into the light.

First, man must realize that truth does exist in the universe and only the discovery of such truth can save us.  Pragmatism is the philosophy of whatever is convenient for the moment should guide human action and there are no great truths, only results.  Pragmatism may dominate today but this has not always been so.  In fact, this is very unusual in human existence.  Every culture has a philosophical outlook.  Most philosophies that dominated previous cultures were almost as destructive as pragmatism.  Other philosophies were those of mysticism.  The universe was considered to be ruled by forces beyond man’s control.  This could take many forms from gods tinkering with human lives or the divine right of kings.  The idea was that your servitude was simply preordained by some kind of supernatural power.  Only in the last few centuries have people rejected such thoughts.  We now call it the age of enlightenment but few really understand how this age changed everything.  For the first time in history the mass’ way of thinking completely changed.  Reason became the dominant philosophy.  When reason dominated, the uplifting affect on mankind was unstoppable.  All the old paradigms fell before it.  No longer did birth grant special status.  No longer could religious institutions force people into blind servitude.  No longer was man destined to wallow in the mud as a servant.  Great universities sprang up all around the world.  The universe was something to be discovered by reason and science, not something forced upon us by mystical texts.  Isaac Newton described himself as a child on a sea shore with the universe waiting to be discovered.   Mankind’s enthusiasm for life was palpable.  In every sense the whole of mankind was raising itself up to a higher level of existence.

Then something happened.  It was so slow that hardly anyone really noticed.  People disagree about what exactly went wrong and have many theories on the subject.  Some point out the influence of Immanuel Kant and his philosophy that took morality outside the realm of reason into the realm of the supernatural.  Some look at Marxism as the rising philosophy of collectivism that came to dominate the intellectual class.  Others have pointed to university professors leaving the United States to attend German Universities (the only universities offering the new “Doctorate Degree”) and returning back with Bismarck’s passion for welfare statism.  What is certain was that the Enlightenment, reason, and the classical liberal tradition were under assault from old ideologies dressed up in new forms like Marxism and Fascism.  The height of the Enlightenment culminated in the American Revolution.  This was a time when the individual was considered sovereign, a time in which man could use reason to understand the universe. By the early 20th century the intellectual class had retreated to the old medieval mysticism that plagued mankind for most of it’s history.  Instead of man being a slave to the church or divinely ordained Kings, people had a new set of masters.   Men were enslaved to evolution and natural selection.  Men of the proletariat were enslaved to the capitalist class and racial minorities were enslaved to racial majorities.  The thought was always the same for intellectuals, people could not escape a hostile reality, and they were doomed to failure.  The intellectuals claimed that the state apparatus and the intellectual elite were the only salvation for the masses just like the medieval church and papacy claimed for themselves centuries before.  The only truths were emotion and feeling while reality and reason were at best secondary and at worst completely rejected.   The examples of this can be seen with modern art that worshiped the deformed and the ugly as opposed to the old art of the Greeks and the art of the Romantic Era that idealized mankind and nature.  The ugly and the abstract were worshiped while the beautiful and the concrete were cast off.  This could be seen in literature as well with James Joyce’s writings and all the other “great writers” of the early 20th century.  The most destructive wars in human history, Nazi Germany, Stalinist Russia, Maoist China, countless mass genocides all over the world, and America’s road to Imperium all arose directly as a result of the philosophies of Pragmatism and Collectivism.

The old collectivist philosophies that started rising again in the late 19th and early 20th centuries have completely saturated all academic fields and major political parties.  Civilization is approaching a major crisis.  But, there is hope.  People all over the world are starting to realize that something is very wrong.  It has become obvious that the experts don’t know what they are doing.   Unemployment is the highest it’s been since the Great Depression but, no one seems to know why.  Whatever experts predict, it seems like the exact opposite happens instead.  People are starting to look into things for themselves rather than trusting their “wise” rulers.

I came to realize something was very wrong during the financial collapse of September 2008.  I had just read Alan Greenspan’s autobiography; a man who I believed was an economic master.   Everything that Alan Greenspan said seemed to point to an era of permanent prosperity.  All recessions and depressions could be avoided with Federal Reserve policy that has been refined to perfection over the last thirty years.   The fall of 2008 came as a complete shock to me.   According to the greatest economist in the world this simply should not have been able to happen.  It became apparent that something was very wrong in my understanding of the world.  I started to research, trying to find out whether or not anyone could have predicted this to happen.  Maybe they might even understand why it DID happen.  As I started reading trying to find out someone, anyone, that could have predicted the recession, I found the Austrian School of economics (named after the early members who immigrated to the United States from Austria).  Austrian Economists have been predicting for years a housing collapse that would spread to financial markets just like it did.  How could they have done this and how come I had never read or heard about them before?  The more I started reading, the more I learned how they predicted every recession since the 1920’s.  This school of thought became very interesting, very quickly because they were saying things that I had never heard before but, everything made perfect sense.  Since then, I have probably spent thousands of hours reading Austrian Economics and Classical Liberal Philosophy. I have learned that today’s fiscal crisis will likely evolve into a monetary crisis.  What I came away with from these readings, I feel, should be spread to others.  Most importantly, I want people to be able to take some small steps toward protecting themselves from what is to come.  Second and more importantly, in the long run I want to explain to people the classical liberal tradition.  Armed with such knowledge it allows the individual to approach reality armed with reason, self-esteem and confidence. The classical liberal tradition will also allow society to function in an ethical way that gives everyone individual autonomy, while allowing market calculation to function correctly.  This will destroy the misery that is the boom bust cycle.  Social harmony can never be imposed from the top down. It can only happen when people interact voluntarily.  This is the only humanitarian social system.