Why Tom Woods is wrong about the Greenbackers
Left: Tom Woods complaining about lack of MSM airtime
Recently the Austrians have been aiming some firepower at the ‘Greenbackers’ again. As we have documented extensively, Austrianism was developed mainly to organize the opposition against the current monetary order and to mind control it into cheerleading the reinstatement of the Gold Standard, which the Money Power has been planning for decades now. Not much new under the sun, but since they insist, let’s have some more fun with their silly antics.
Tom Woods has 34k likes on Facebook, is asked by friends to run for the Senate, is clearly groomed to play a major role in Libertarianism in the future and looks like the Heir Apparent to Lew Rockwell’s ‘Catholic arm of Libertarianism‘. Certainly an influential fellow and he recently opened up a page on his site called ‘Why the Greenbackers are wrong‘.
As we know, the Greenbackers are the sworn enemies of the Austrians. They don’t like to talk too much about them, lest they would get unwarranted attention, and they usually reserve their gall for the Keynesians. But in fact, the Greenbackers are their ‘raison d’être’, to usurp the real opposition against the Money Power’s control of the money supply. So it’s probably necessary, even if a tad boring, to rebut this 5100 word screed.
Let’s keep in mind what is at stake
We could print enough debt free paper money to pay off the National Debt. This Debt is entirely credit based, for every debt free dollar we print, a credit based dollar would go out of circulation. Meaning: no inflation. After the operation we would have no national debt and the Fed Govt would be spared $450 billion per year in interest payments. This is the Greenback and this is not something the Money Power is going to allow and stopping this is what Austrianism is all about.
This would end the Fed, at least as we know it, and it would nationalize money. This, according to Tom Woods, would mean more socialism. You see, it is clearly better when a private banking cartel prints money, slaps interest on it and a few Trillionaires rake in this $450 billion per year. That is, after all, the ‘free market’, a great example of ‘human action’ by the Rothschilds, certainly not to be interfered with.
As we have analyzed in ‘Libertarianism’s main fault: Blaming the State while ignoring the Money Power‘, the Money Power, which sits at the top of the international power hierarchy, owns all the money supplies in the world, including that of the US. It uses it to enslave us with interest and the boom-bust cycle.
It can do this, because it forced sovereigns in the past to create de facto currency monopolies through legal tender laws and then hand these to the Money Power.
So reclaiming this currency monopoly actually devolves power from the summit (the Money Power) to one level lower, the Government. In short: less socialism than we have now, not more.
And the Greenback is not even the ideal solution. With the current level of Interest-Free Economics it’s probably the least of the acceptable solutions. But the Greenback would be a major step forward and undoubtedly set back the Money Power agenda for decades. It would end the depression and halve the deficit over night. It would bust Wall Street profits, which is a great relief for Main Street paying for these profits through income tax.
Violent Statist Fiat Currency
This is an issue that never ceases to amaze me, when dealing with the Austrians: they’re completely clueless about the different proposals around. They all lump it together in the ‘Greenbacker’ label, that they try to make into something derogatory. That’s why I put together ‘A Primer for Recovering Austrians: the many systems behind ‘violent statist fiat’ currencies!‘, it concisely explores the main propositions at this point.
Of course, we must not forget that it is in the Austrian interest to keep it all neat and simple, so they can keep hammering away at the ‘statist fiat’ nonsense. How annoying, then, that interest-free, free-market units have been turning over untold billions per year for decades.That there are highly developed proposals out there even more powerful than the Greenback, devolving money power even further to the commonwealth and individuals.
The ‘Paper vs. Gold’ meme now sweeping the Alternative Media is just another pleasant Keynesianism vs. Austrianism dialectic, both ignoring the paper based interest-free alternatives like the Greenback, Social Credit and Mutual Credit.
End the Fed
Woods opens up his hitpiece with the now almost universal Libertarian rechristening of the Truth Movement, that erupted after the 9/11 attacks, to the ‘End the Fed’ movement.
Of course, most Libertarian leaders, in unisono with their dialectical brethren of the left like Noam Chomsky, say Arabs attacked New York.
The Austrians like to slap down ‘conspiracy theories’, just like the MSM do. The only conspiracy they see is the State, but of course ‘free market’ players are just wonderful people in it for ‘enlightened altruism’ Ayn Rand style, aka wholesale profiteering and rent seeking, all ultimately for the greater good.
Murray Rothbard made a few highly amusing cases in the typically deductionist Austrian way, meaning utterly disconnected from practical observation, ‘proving’ cartels in the market are impossible without the Government. Really funny stuff, highly recommended for comic relief.
Of course, as we know, the Bush administration was up to its eyeballs in this Mossad attack. So it’s actually a little weird the Austrians have so much difficulty coping with this rather blatant Government conspiracy.
Woods says the ‘End the Fed’ movement sees some people who don’t understand, because they are Greenbackers.
But it is clear that in the Truth Movement we have some Austrians who don’t understand because they are Money Power goldites.
There is no ‘End the Fed movement’ other than a wholly bogus controlled opposition effort, enabled by Alex Jones who certainly should know better, and some other stooges, disabling the patriots out there.
The Money Power is ready to dump the Fed and Austrianism is here to make sure they both get that and their coveted Gold based new currency order. It’s certainly not for nothing that Alan Greenspan is probably the most famous Austrian out there.
Tom Woods explodes the myth of elite financing of Libertarianism
He doesn’t really want to go into it, because it is such nonsense, but he did ask Mises biographer Guido Hülsmann to comment. Who then goes on to confirm the Rockefeller Institute sponsored Mises. How could he not?
Of course, he completely ignores the Volker Fund, Jesuit involvement in Libertarianism, Ayn Rand doing a Rothschild when she was writing Atlas Shrugged, the billions the Koch brothers poured into Libertarianism, after their father co-founded the Birch society (another bunch of good friends of Tom Woods, by the way) and Atlas Foundation strongman John Blundell explaining how they were ‘littering the world with ‘free market’ think tanks’.
He also tries to dispel this notion with the idea that Austrianism is fringe and thus financing failed. No students hear about Austrianism in college, he says.
Well, compared to the Mainstream, Austrianism is certainly small, although growing very rapidly. Ron Paul educated the masses on the wonders of Gold and deflation and many of them are all for it now. Ed Griffin on Fox, Napolitano all over the media, Peter Schiff and all the others. Compare that to what Populism and Interest-Free Economics receive in airtime.
Let’s also not forget that the Mont Pelerin guys (who are behind the Austrian theories) got eight economic ‘Noble prizes’ (no such thing actually exists, of course) during the last few decades. Not bad for a suppressed opposing system the elite so profoundly fear.
Obviously, as controlled opposition against the Main Stream Austrianism’s time had not yet come. It is only now that the Money Power is ready to kill the dollar and move on to a new currency order that Austrianism has become important.
But we don’t want to tease Tom too much: all these bribes are certainly a bit tasteless a conversation in polite society. Too conspiratorial, I’d say.
Most of the article is just one massive diatribe explaining where money comes from and how paper money must always be forced upon the public by the State, for it could not exist otherwise and Gold is the only money that will ever emerge from the free market. They always do this. You will not believe how many Austrians have been explaining ‘that first we bartered, but that was cumbersome and we needed money’.
The whole thing is dazzling, I’m still not sure what he’s actually saying, but it sure does not suggest great clarity of thought. Perhaps he was just scaring people away, I don’t know.
In the first place he attacks the notion that Interest plus Debt cannot be repaid. I’m not going into his reasoning, simply because he makes the case in the worst of ways: others have done so much better. There is some merit to it. But not much. Recently I penned a slightly revised appreciation of the situation and I’d be most interested to hear if any questions remain in this regard.
The debt can never be repaid, period.
Eternal growth of money is guaranteed with paper, eternal deflation guaranteed with Gold because of this issue.
Much worse: Usury costs the poorest 80% of the globe’s populace 5 to 10 trillion per year. I’d certainly be interested in Tom’s comment on this situation. Or any Austrian’s comment, I might add. Never heard anything about it from their side.
As said, Woods also claims Gold has historically been the only money coming out of the free market. Complete crap. The first Gold coins were minted by sovereigns, not by the market. Furthermore, ancient money was actually credit based: receipts for supplies stored in centrally controlled warehouses. This goes back all the way to Hammurabi.
Austrians, as does Woods, have a very fuzzy understanding of what money is. They will often say it’s ‘the most marketable commodity’. Or they’ll cite ‘marginal utility’. Maybe. But what is more marketable than promissory notes? What could have more marginal utility? Perhaps that’s why there are so many interest-free paper based free-market units out there, could be.
But let’s just stick to a simple definition: money is whatever we agree upon as a means of exchange. Even our friends at the Daily Bell have seen the light there.
Woods really takes fuzziness to the downright insane in this video. In it he says that if Greenbackers like debt-free money so much, why don’t they like Gold? Because, Woods explains, Gold is mined, coined and then spent into circulation. So Gold is debt-free!
Excuse me? Does he actually believe this, or is this just propaganda for more feeble minded consumption?
Gold mining adds maybe 1% to known reserves yearly. The rest is safe in Central Bank vaults. Does Tom really believe they will spend these reserves into circulation? Or will it be LENT into circulation, at interest?
As a final note, when dealing with a self-declared Catholic making a career of whitewashing Usury, it’s obligatory to mention that Anton Lavey is on record stating his satanist ‘religion’ is just ‘Ayn Rand’s philosophy with ritual and magic added’.
The level of thinking that these people promote is actually quite insulting to the public. Who, in turn, show how desensitized to outlandish nonsense they really have become, considering the sweeping ascent of Austrianism in the last five years or so.
However, considering the careful long term Money Power strategizing behind it all, we must not bear too harshly on the public and personally I’m very grateful for the ongoing opportunities Austrianism offers for pleasantries as the above.
Answering Tom Woods
Debunking Tom Woods’ ‘Catholic’ Austrian Economics (Memehunter)
How the Money Power spawns Libertarians
Greenbackers vs. Goldbugs, by Eric Blair (Activist Post)
Addendum: Meanwhile, the Daily Bell cannot let go either. The last few months they have taken the ‘Public Banking and the Greenback are fascist’ line. Because Hitler took money power away from the City and printed his own, everybody doing the same is now a Nazi. Rather predictable, in fact, we did predict this would happen. It’s called ‘Guilt by Association’ and is just one more of the logical fallacies Austrianism is famous for.
Just a few days ago they sighed with relief that “the apparent creation of bought-and-paid-for websites has diminished along with the eruption of fury against those who have the presumption to discuss freedom.”
They are so happy they declared victory by naming the article ‘Mises has won’. Apparently they miss our regular outings dealing with their monetary quackery. My good friend and close ally Memehunter tired a little bit of nurturing the smoldering ruins of Daily Bell credibility at the Daily Knell, focusing on more pressing priorities.
But don’t push your luck guys, he came out of retirement once, he’ll do it again should you get on his nerves with all too blatant manipulations of the debate…..