History of the Austrian School of Economics

The problems involved will become discernible as soon as the wartime attitude in the United States toward financial and trade matters is replaced by a more realistic mentality.

Over two decades before the Spanish Jesuit de Mariana, George Buchanan arrived, for the first time, at a truly individualist theory of natural rights and sovereignty — and therefore a justification for individual acts of tyrannicide.

"An excessive quantity of money," he opined, "should be avoided."

Deflationary policy is costly for the treasury and unpopular with the masses. But inflationary policy is a boon for the treasury and very popular with the ignorant. Practically, the danger of deflation is but slight and the danger of inflation tremendous.

"Since credit expansion is made possible by state action, the business cycle — so far from being a natural consequence of the free market and a heavy debit against it — is ultimately traceable to government…"

As Böhm-Bawerk declared, Salmasius's views on usury were the high-water mark of interest theory, to remain so for over 100 years.

"The default position of the world is despotism. In the sweep of things, liberty is the exception."

In order to make it easier for the central banks to embark upon credit expansion, the European governments aimed long ago at a concentration of their countries' gold reserves with the central banks.

"Rothbard here is rather writing as an ideological polemicist about what thinkers are 'good for the team,' and his critiques even beyond this book often had that spirit."

The governments of almost all countries are engaged in a campaign against the capitalists. They are intent upon expropriating them by means of taxation and monetary measures.