Do You Want More War?

by 4:48 AM 0 COMMENTS

It is easy to say you do not want more war; it is not as easy to do things that will prevent it from happening. The cause of war is usually economic, even the crusades had a powerful economic motivation.

We are at a very dangerous time in world history. The resurgence of Russia, accompanied with the rise of competing powers such as China and India, is creating international tensions that resemble those before WWI. I realize that there are some differences, but the trend is remarkably similar in many important ways. I think that while the cause of the next big war will have some similarities to WWI, I think the root will be more similar to that of WWII.

In the United States, we tend to think we were the only country suffering through a depression prior to the war. It was a worldwide depression, which created a global sense of desperation. This desperation led to men such as Hitler and Mussolini coming into power.

Hitler promised a renewed Germany based on central planning, which was almost exactly as the Keynesian economic model followed by most governments today. He began with massive spending projects (stimulus) which provided short-term relief. The problem with his stimulus was the same problem we face today, it ran out, and after the situation was worse, because the stimulus created massive debts.

Before we go any further, I need to clarify. I am not excusing Hitler’s actions, nor am I associating all Keynesians with his type of genocidal mania. What I am doing is simply pointing out economic cause and effect. I do not blame Keynesian thinking for the Hitler's genocide, but I do think it was a primer for the Nazi conquest.

With massive debts, he was forced to either cut spending or increase revenue. Because spending was what was driving his recovery, he choose to increase revenue. At this point, he was still political vulnerability. Steep tax increases were out, and, after the Weimar debacle, so was inflation. This left him with only one (leftist don't believe in the concepts behind the Laffer curve) economic means to increase revenue, conquest.

He annexed Austria, but the debts kept rising and he had massive building projects planned for the years ahead. He restructured his whole economy around military expansion. Even if Hitler wanted peace, his economic policies had made war his only option, if he wanted to stay in power. A sane person would have bitten the bullet and cut spending, but Hitler was not giving up power, even if it meant destroying his nation.

Today we are approaching a similar situation. Keynesians have for decades been stimulating the world economies by expanding government spending. To reduce the growth of deficits, they increased taxation year after year until it exceeded fifty percent for the common person. This is why few families can no longer prosper on a single source of income.

About forty years ago, they saw the tax increases would not be enough, so they started a system of intentional inflation. Currencies around the world (including the world’s reserve currency) stopped being tied to tangible assets. As time went on, the various government programs grew and with that growth, came a growth in intentional inflation. In the 90's this burden of tax and inflation was harming the economy, so, the Western governments sought to stimulate their economies by cutting the cost of resources. We began to be heavily involved in the Middle East.

In the U.S., many on both sides have sought to demonize Clinton, Bush, and now Obama as warmongers. This is reactionary and accomplishes nothing. The foreign policy trend of our nation is not about one man or a political party. These wars are the natural results of following a Keynesian system, which is losing the ability to stimulate. We have become addicted to stimulus, and like a drug addict, we are doing whatever it takes to keep more and more stimulus coming. Since 9-11, our foreign policy has been growing more expansive each year.

With the recent devaluation of the dollar, accompanied with massive debts and a slumping economy, the Keynesians are running out of tricks. They will be forced to admit defeat or go to war. They are already making the case for war:

You know what... No more nice guy. THOSE THREE KNOW NOTHING VERMIN ARE MAKING THE CASE FOR A MAJOR WAR, BECAUSE THEY ARE TOO PRIDEFUL TO ADMIT THAT THEIR SYSTEM DOES NOT WORK!!! These men, and people like them will face justice. They will have to answer for all the children who never knew their fathers, BECAUSE THESE EGG HEADS USED THEM AS EXPENDABLE CHESS PIECES!!! How many cities have to burn?

And folks... This is not a left-right issue. With exception of three, most of the Republican candidates believe the same thing as the men in the video. You may remove Obama, but unless you do it with someone from the Austrian School of economic thinking, the wars will increase. If you want an endless cycle debt, inflation, and war, vote for a Keynesian.



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