U.S. Economy

"There is no such thing as a nonspeculative investment.… In a changing economy action always involves speculation. Investments may be good or bad, but they are always speculative."

"The more these readjustments are delayed," Rothbard explained, "the longer the depression will have to last, and the longer complete recovery is postponed."

All that stimulatory policies can do is redistribute real savings from wealth-productive to nonproductive activities."

The science of human action is mental and aprioristic, it is the product of a logical analysis of the categories implied in different modes of action.

We can understand the reaction today to people calling to "end the Fed."

Presented by Congressman Ron Paul at “The Failure of the Keynesian State,” the Mises Circle in Houston, sponsored by Jeremy S. Davis.

The Federal Reserve was created in 1913 by Morgan men to cartelize the banking system and limit competition. This is fractional reserve banking rather than 100% reserves. Rothbard thinks it is fraud. It increases the money supply in an inflationary manner by creating money out of thin air.

With WWII, Morgans get their war in Europe; Rockefellers get their war in Asia. Both sides are happy. Rockefellers take over foreign relations and create the Trilateral Commission, while electing Carter President in 1977.

Rockefeller's Standard Oil created a monopoly in kerosene refining by buying others out. A huge drop in the price of fuel followed, benefiting consumers, due to production efficiencies. Rothbard then discusses pietists, prohibitionists and the big political shift of 1896.

The progressive period saw a re-alliance of church and state - secularized extreme Pietism (Protestant sects) with government as savior by intervening in markets. The Pure Food and Drug Act was a prototype for the whole progressive movement toward purity of body, mind and soul.