1931 Moratorium on Brains

Christian altruists

Herbert Hoover in 1938 meeting with results of 1931 Moratorium

In 1931 Republican President Herbert Hoover and drug czar Harry Anslinger were pressuring Germany into additional curbs on heroin exportation while semisocialist Germany’s victims were demanding reparations payments under the Treaty of Versailles (which the US did not ratify, but which still involved $10 trillion in gold).

Hoover’s error is relevant to ongoing efforts to extricate These States from the Vichy Paris carbon tax extortion the Obama Administration tried to smuggle past the Senate. Already there is a severe shortage of nuclear power plants in These States–which is the whole reason engineers are forced to rely on coal–which is less clean and less safe by comparison. The Paris Capitulation can only benefit Communist China at the expense of the relatively free world. 

As 1931 stupefacient drug prohibition negotiations proceeded, banks in Germany and Austria failed. Depositors were removing their money because they knew the influx of dope money would stop, but reparations claims were persistent. Hoover’s brilliant idea was to let France, Britain, Italy, Russia and others “temporarily” default on war loans payable to the USA. In exchange, they would let Christian altruist Germany default on reparations payments owed to the USA. That was the lose-lose theory of coercive prohibitionism. What happened under the Moratorium was that Germany kept exporting addictive poisons and using the money to build up the Steel Helmets, build submarines and battleships and entrench the National Socialist party. Immediately all of Europe began defaulting on war debts, and even commercial loans of private US capital.

socialism is socialism

Mystical collectivists elect Nazis, thanks to Hoover

Ayn Rand was a Hollywood writer and reader hanging out with pre-code movie stars like Barbara Stanwyck, watching Three on a Match (with husband Frank O’Connor), Scarface, Night Nurse (bootlegger hero), Dinner at Eight, The Secret Six and old Alma Rubens movies. At age 24, newlywed immigrant Ayn Rand was certainly aware of Russian and German anti-jewish fanaticism. All of America was painfully aware of Hoover’s solicitous concern for The Accursed Hun.

The smart Moratorium in Atlas Shrugged is Hank Rearden voluntarily offering rail on credit to Taggart Transcontinental. The dumb Moratorium in 1931 was Hoover helping Hitler’s backers arm and control Germany’s government. To this Ayn Rand drew too vague an analogy with the Moratorium on Brains in Atlas. Nor did she clarify the connection, possibly for fear of weakening Barry Goldwater’s GOP while the Soviet still existed.

Dwight Eisenhower was, after all, the conquering Republican president of both These States and the Government of Occupation, and Richard Nixon was his vice-president and anticommunist Wingman when Atlas Shrugged was finally published. But the book was already in its tenth chapter in 1947, when Christian National Socialists were denying ever having so much as suspected that Henry Ford’s Fuehrer’s promise to “extirpate” jewish egoism in Mein Kampf was anything but a joke. That was the year Rand composed the Non-Aggression Pledge. That tersely-worded individual decision established a modern ethical position consistent with the era of mature nuclear physics.

I also produce articles in Portuguese, using Brazilian historical sources at http://www.faloingles.com or http://www.expatriotas.blogspot.com

Advertisements

Prohibition and the Crash–guest appearance

The following post The Drug Problems Jeff Sessions Complains About Are Caused By Prohibition appeared first on A Libertarian Future at A Libertarian Future – Spreading a Libertarian message across the internet.. Many libertarians were upset with Rand Paul for voting to confirm Jeff Sessions because the Attorney General has an enormous amount of leeway…

via The Drug Problems Jeff Sessions Complains About Are Caused By Prohibition — A Libertarian Future

Ayn Rand balks British

arevoltadeatlas

Atlas & the Fountainhead in Portuguese

Most Brits simply cannot Grok Ayn Rand. This is hardly surprising when you consider that Atlas Shrugged freezes the thinking of most Americans conditioned by government schools and teevee…  

Just as a host makes parasite survival possible, so a large political party can artificially extend the life of a parasitical cult or ideology. History is full of such things. The Whigs with their Tariff of Abominations permanently alienated the Colonial South, represented by The Slaveholding Democracy.

High-tariff politicians were thenceforth centered in open iron gunsights by Democratic partisans of the day. Abolitionists deserted the Whigs as ineffective wimps. Karl Marx’ altruistic communist party in Germany seized upon “graduated income tax” as a source of someone else’s substance in the midst of a depression wrought by disruption of the opium trade in China and related Indian mutinies. Because this verifiable explanation of the Great Depression of the USA in what the Disraeli called the  “hungry forties” is avoided in government schools or detoured by exaggeration of the Irish potato famine, a digression is in order.

Britain had become a colonial parasite on primitive China and India both. Defeated by the US in the wars of Independence and 1812, Cornwallis was transferred to India and the loose agglomeration of Hindu and Moslem tribes whipped into agricultural production of opium and indigo, much like the American South had been transformed by the lash into colonial cotton plantations under British rule. After China in 1837 expelled the opium traders, capital was withdrawn from US municipal bonds and other securities and poured into the opium wars. That and a bad winter, possibly exacerbated by fallout from an Icelandic volcano, made Europe fertile soil for a looter kleptocracy. Communism and socialism sounded better than looter kleptocracy and so those party denominations were ingrained by repetition.

Britain’s chief concern in the Gilded Era was the expansion of chemical slavery by exportation of morphine–an ambition lustily shared by France, Prussia, Germany and Austro-Hungary (and to a lesser extent Switzerland and Holland). But the dumping of addictive narcotics in China again broke down after the revolution of 1911 made it possible for the Chinese republic to again ban poppy drugs. In this China was abetted by the guilt-ridden Roosevelt, Taft and Wilson Administrations, through Pure Food and Drug laws and the Hague Opium Agreements detrimental to the traffic. German and Austrian morphine came from Balkan opium. As prices collapsed in the wake of interruption of the China dumping, war broke out in the region and escalated into WWI.

Britain’s most pressing concern after the Great War was how to squirm out of repaying the loans taken from American banks to throttle the Accursed Hun. The entire interwar period was one of renewed imperial parasitism on primitive colonies–and on the foolish creditors of those same morphine exporters who went to war in 1914 to evade the Hague Opium accord. This was the era in which Ayna Rosenbaum was educated in Russia, fled communism to These States in 1926, and witnessed the Crash and Depression wrought by a combination of American alcohol prohibition, prosecution of sugar and yeast companies under tax and conspiracy laws, and the squirming of European Pharmacy metropolises to evade controls on addictive poppy drugs and skip out on loan repayment and reparations collections.

To the Americans, WWI became inconvenient when Germany exported communism to Russia and that ideology toppled the Russian Empire. To save their loans, American bankers and industrialists had the Congress conscript youngsters to turn the fortunes of war in favor of the drug-peddling debtors whose notes they held.

President Warren Gamaliel Harding, a hard-drinking, drug-taking philanderer was the women voters’ choice in 1920. His exploits, retold by his love-child’s mom Nan Britton, coupled with the adventures of “missing” Los Angeles evangelist Aimee Semple McPherson, are revived in unobtrusive background splendor in the pages of Atlas Shrugged. The novel was written by that same Russian immigrant writing under her Ayn Rand pseudonym. Herbert Hoover, HL Mencken and other colorful characters are mirrored in the cast.

The history of the British Empire of that day is by contrast a sordid set of setbacks in colonial parasitism of Egypt, India, Iran, Burma… awash in cheap opium. Celebrity appearances are provided by Mahatma Gandhi (preaching non-initiation of force) and Miss Brenda Dean, debutante of London drug party scandals. George Orwell’s writings record Burmese misery and the dreary preoccupation of looter populists exploiting the baffled hunger of illiterate proletarians to curry favor with British Fascists or communist-infiltrated Labour cliques.

So OF COURSE the familiar media story chords exploited by Ayn Rand differ completely from the social milieu prevailing in the British Isles during the interwar period that framed the backdrop to Atlas Shrugged–except, perhaps, in the town of Starnesville. British intellectuals are oblivious of or baffled by the struggles of 1930 American Liberal Party liberals (not looters) against totalitarian prohibitionists. And prohibitionists are the very creatures the pub-drinking British themselves struggled against–to keep pubs open and the better to compete in narcotics export markets with France, Switzerland and Germany.

Small wonder they never brag about these things, but it goes a long way toward explaining the bovine incomprehension of Britishers confronted with American libertarian values. Like our Liberal Party forbears of 1930, American Libertarians apply the power of spoiler votes as a lever to pry parasitical hangers-on from the major parties. The Republican party is threatened by potential bleeding off of spoiler votes by declining remnants of three religious fanatic parties concerned with prohibiting sex and drugs. The Democratic party–ever the party of slavery–relies on the declining remnants of communism. The Green Party and CPUSA are reliable purveyors of “global warming” hobgoblins as justification for government suppression of industrial production in Western mixed economies. Their spoiler votes are still a dying bindweed coiling about the ankles of the Democratic Party. Do not despair… Libertarian spoiler votes increased 328% in the 2015 election, and these votes pack law-changing clout.

The threat to civilization today is religious fanaticism as pushed by the Republicans, Islamic berserker-states, communist collectivists, papal states and ku-klux entities committed to the coercion of females against their will. The libertarian party alone is for the time being relatively free of those parasites. Its platform therefore contains no promises to have the police gun down children, confiscate innocent assets, throttle industrial access to energy and purchase votes with transfer payments from producers to non-producers.

Looking for a translator to interpret the ideas behind the words?

Then and now, asset forfeiture crashes

1987DJIAAccording to Ronald Reagan, on Thursday, September 11, 1986, lunch with VP George H.W. Bush was followed by a lengthy cabinet meeting over proposed prohibitionist legislation.

Those were the heady days of “Just Say No,” when the Soviet Union was going broke and the Reagan administration was looking for ways to cut off all sources of income for the communist empire. The 9/11 drug bill in question contained items like using the military to invade other countries to enforce prohibition, an extra hundred million dollars to hire a drug army, Federal funds for state prisons, and “introduction of illegally obtained evidence at criminal trials in cases where a police officer acting in good faith makes an error in a warrantless search situation” … “forfeiture of substitute assets“,  “drug tests for all U.S. government employees in “sensitive” positions” and so on.  Reagan signed the resulting bill and called it a “National Crusade.” The way these laws are written, they only take effect a year after they are signed. You wouldn’t want cause and effect close enough together to draw attention to the financial charts.

1932banksuspensionsThe same sort of thing had been happening 55 years earlier, Herbert Hoover was president, beer was a major felony, several large banks in New York City had been involved in financing illegal alcohol and drugs, and Ronald Reagan had just turned 20.

President Wilson’s son-in-law, William McAdoo, suggested that Congress pass a law confiscating all money owned by drug and alcohol operators. Pres. Hoover had already more than doubled the number of convicts in prison for victimless crimes. Money the government didn’t have was being appropriated for building new prisons and hiring hordes of agents an prosecutors.

In June 1932 the Senate passed the revenue act containing the asset forfeiture provisions, along with major tax hikes. Hoover lost the election in November, but would still be president until March 4, 1933. In the meantime banks for closing right and left because citizens, fearful of asset forfeiture confiscations, we’re removing all of their deposits, thereby contracting the amount of available credit. Tax revenue fell by nearly half before anyone had ever heard of the Laffer curve. Stockbrokers were only making money by selling short. Huge bootlegging and narcotics trials of wealthy and important defendants from arrests made back in 1928-1932 were running out of delaying tactics.

GOPNSDAPFinally, on December 13, 1932, President Hoover signed executive order 5970 –Inspection of Income Tax Returns–which allowed States to look at Federal income tax forms filed by corporations within their borders.

This was done quietly, with no fanfare in the newspapers. Few even realized what had happened until Hoover’s press conference of January 20 subtly spilling the beans. This realization dawned ten days before Hitler was named Chancellor of the same German Reich Hoover had nurtured and protected by his moratorium on war debt collections (the Moratorium on Brains). The House promptly cut off all funding for wiretaps and entrapment buying. Corporations began withdrawing money from banks, and over the course of the following month every single bank in the United States shut down even before Franklin D Roosevelt was sworn in to become President for Life and declare a “holiday,” complete with fines, imprisonment and forfeiture language.

Religious conservatives have since that time pronounced the word “liberal” (in favor of repealing prohibition) the way their German counterparts pronounced the words “liberal” and “Jewish” (meaning laissez-faire).  In the rest of the English-speaking world, liberal still means the same thing that it meant–-even to religious conservatives–-in America before 1932.

Stay tuned for how these events relate to the Crash of 2007-8 and the ensuing Depression. Need an interpreter?
My other blog is in Brazilian