Saturday, November 13, 2010

The meaning and roots of "Austrian School"

When Rand Paul demands austerity, he always says this is how the Austrian School has explained economics to him. In an interview last Sunday, for example, Paul pointed to the Austrian School of Economics outlet, the Cato Institute. He praised Cato's Christopher Edwards for urging the destruction of NASA, Medicare, and Social Security.

The Austrian School is embraced by the European oligarchy in its relentless push for universal fascism.

Let us further situate the foreign enemy which has possessed Rand Paul's mind, the Austrian School economists, and their origin in the Hapsburg-British imperial war against the United States of America.

In 1876 the Hapsburg Emperor Franz Joseph hired Carl Menger (1840-1921), who would become known as the founder of the Austrian School, as tutor to his son, Crown Prince Rudolph. Menger took Prince Rudolph around Europe for three years, acquainting him with the quandary facing the undead feudalist Hapsburg family and their Austro-Hungarian Empire.

- Republic or Empire? -

The United States had recently survived the rebellion of the slave-owners, rebels armed and instigated by the British. The American republic had survived despite the pincers, Rudolf's Uncle Maximilian being put on an imperial throne over Mexico, and British troops occupying Canada.

And Abraham Lincoln's America had counterattacked, by spreading nationalism, protectionist economics, and the drive for modern industry and technological progress, to Germany, Russia, Ireland, Italy, Japan, and many other nations.

Carl Menger explained to the Prince how the old feudal oligarchy of bankers and autocrats might maintain their death grip on humanity, against America's energy.

The old form of empire was breaking down. The Inquisition, the New Dark Ages religious police state imposed by the Hapsburgs on Europe, could not stand against the American ideal of separated Church and State. Austrian forces, occupying Italian principalities with mass imprisonment and executions, and Austrian sponsorship of the feudalism-mad Pope Pius IX, could not prevail against Emilio Cavour's genius. An ally of Lincoln's economist Henry Carey, Cavour unified Italy just as Lincoln became the U.S. President.


A new imperialism was required, based on global financial looting and new forms of colonial regimes outside Europe.


Carl Menger explained the new Liberal economics, worked out in concert with the British Empire.

Menger warned the Prince that the enemy doctrine of national sovereignty had spread from the arch-nationalist Lincoln to German Chancellor Otto von Bismarck, who copied Lincoln's tariffs and railroad-building strategy.

- The Liberal Darkness -

Menger's new dogma, that the State must not be allowed to interfere with financial freedom — the right of imperial financiers to deploy their Money Power — took its place beside other "liberal" anti-republican instruments forged in the Hapsburgs' crypts: pessimism in literature, soulless psychology, deliberate ugliness in art, crazed atonality to overpower Mozart's and Beethoven's beauty. (Carl Menger's brother, the socialist attorney Anton Menger, crystallized this assault on reason and progress into what became known as the Frankfurt School.)

Germans reacted to Menger's polemics against Lincoln and Bismarck by referring derisively to the "Austrian School" — meaning those who argue for the presumed logic of imperial Free Trade economics while declining to discuss any actual history whatsoever. This is the origin of the term, Austrian School, which has identified Menger's disciples such as Hayek and von Mises, Rand Paul's brainwashers.

Here is the Money Power against which the USA has struggled throughout its history.

In Menger's day, the extended royal family of Austria, Britain, and Belgium coordinated with international bankers for nightmare colonial experiments, such as the Congo.

Belgian King Leopold II had married Marie Henriette, archduchess of Austria. Emperor Franz Joseph's brother Maximillian had married Leopold II's sister Carlotta.

Meanwhile, Leopold II's father, Leopold I, had arranged the marriage of his niece, British Queen Victoria, to his nephew Albert.

When Menger's student, Austrian Crown Prince Rudolph, married Leopold II's daughter Stephanie in 1881, she was the heir to the Congo, a giant province of central Africa which her father had made his private property. The Belgian Congo was the scene of such brutality and mass extermination of looted natives, that it has stood since then as the very emblem of the disgrace of latter-day imperialism.

To the present day, the Austrian School and its agents condemn as tyranny Lincoln's insistence that the Union be preserved. The Von Mises Insitute's paid writer Thomas DiLorenzo, in his hilariously misnamed book The Real Lincoln, defends secession and claims that slavery would have ended peacefully if only the United States had been successfully destroyed.

In the last chapter of Friedrich von Hayek's book, The Road to Serfdom, Hayek demands that national governments be prevented from interfering with international trade: a global police force must be set up, to usher in the final world empire of Free Trade.

This is the heritage and rationale of the Austrian School, which teaches Rand Paul that neither the American nor any other people have the right to defend their lives and their families against the Money Power.

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