Tuesday, September 23, 2008

Bernanke, Paulson . . . the New Al Queda?

No, we're not suggesting that Benjamin Bernanke, Henry Paulson, and Osama bin Laden are all cozying up and snuggling together in the same bed in a plan to establish a Fourth Reich . . . but they might as well be. Not that this is surprising. Karl Marx predicted that the capitalists would sell the very rope used to hang them. Why, then, should it surprise us that the most financially influential individuals in the United States are acting as if they were in cahoots with Osama bin Laden and disciples of Karl Marx? To all appearances, they are willingly and eagerly carrying out bin Laden's announced plan to bankrupt America.

To be honest, the program to dismantle every check and balance in the financial system, overthrow the free market, and establish a State-run monopoly over money and credit appears to be based on ignorance, not viciousness or stupidity. Bernanke and Paulson appear honestly to believe that a State monopoly over the most dangerous tool in the world — money — is going to solve all our problems instead of setting up the perfect recipe for the most totalitarian government the world has ever seen. Adolph Hitler came into power in large measure because he promised to restore stability to the economic system — and received essential support from the industrialists and financiers of Weimar in his bid to be appointed Chancellor of Germany in 1933.

Ironically, Hitler's party, the National Socialists (while still the single largest party in Germany), was rapidly losing seats in the Reichstag. Had it not been for the German equivalent of Wall Street, Hitler would never have been able to persuade the near-senile, but desperate Hindenburg to appoint Der Führer as Chancellor.

Yet even Hitler didn't dare to exert such levels of State control over money and credit as Bernanke and Paulson now advocate, especially after Dr. Hjalmar Schacht performed his near-miracle in stopping the hyperinflation. Schacht turned off the printing presses, established an asset-backed currency, and was credited with single-handedly making Germany strong enough economically to finance the war machine of the Third Reich. Later, when Schacht's eyes were opened and he was implicated in a plot to assassinate Hitler, Der Führer didn't dare have Schacht killed, having to settle for imprisonment in a concentration camp.

What have the financial interests in the United States been doing? Going where Hitler feared to tread. Dismantling every check on monopoly financial power, cutting off credit to productive enterprises, divesting ordinary people even of home ownership (to say nothing of keeping them out of ownership of the means of production) — the list is now virtually endless, and still no one seems to see any reason to take a look, serious or otherwise, at Capital Homesteading, or the scholarly analysis contained in "A New Look at Prices and Money: The Kelsonian Binary Model for Achieving Rapid Growth Without Inflation," published in The Journal of Socio-Economics, Vol. 30 pgs. 495-515.

Perhaps they prefer Mein Kampf.

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