Another Monday, another snippet of insight from the Ghost of Libertarianism Past, Murray Rothbard. This week we take a look back at a clip from a 1989 Rothbard delivered at the 1989 Texas State Libertarian Conference entitled “The Current State of World Affairs”. As with many of Rothbard’s speeches, this one could have just as easily been delivered today, as the core ideas of libertarianism are consistent over the years, and there has hardly been a libertarian philosopher as consistent as Murray Rothbard.
In this clip, Murray looks into his crystal ball, and accurately predicts the fate of the European Union as it began the move toward one central bank and one currency shared amongst the various economies of the European Union.
Rothbard points out that the press has built up the idea of a European Union as a gigantic “free trade area”. Of course this would sound wonderful to most free market advocates if it were actually true. But much like the phony “free trade” agreements like NAFTA, the truth of the European Union is far more insidious. The real point of the EU is to take the central banks of all the nations of Europe and solidify their currencies under one, singular central bank. This of course simply gives one bank more power to inflate the currency, and spread the inflationary effects throughout multiple nations. This punishes more productive wealthier nations like Germany, while allowing smaller economies like Greece to spend beyond their means.
We are seeing the disastrous results of the creation of the creation of the European Central bank in the headlies today. We are also seeing another one of Rothbard’s predictions come true, as various European Union nations are being called upon to raise taxes and cut services in their respective countries in order to “fix” the problem. This is like trying to fix a hatchet in the head with a band-aid, and only serves to further impoverish the people of Europe while enriching the central bankers who control the entire scheme.
For those unfamiliar with the Euro and the Euro Crisis, this excellent 10 minute video by Tom Woods serves as an easy summary.
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