A Nutcase History of Libertarianism

Recently by Gary North: How To Leverage Your Job or Calling



I have been asked by several of my subscribers to respond to this article: Proof Libertarianism is an Illuminati Ploy. It appears here.

Let me say, before I begin, that the author of this article is the only person I have come across who could profitably study with Ellen Brown.

There is a subhead: William S. Volker (1859-1947) was a wealthy German-Jewish businessman.

There is a biography of William Volker, Mr. Anonymous (1951). On Page 16, we read:

After supper they gathered around Dorothea to pray and to listen to her read passages from the Bible. The Scriptures finished, she laid the Bible aside and explained the practical application of each admonition. Dorothea also passed along to her children the plain homilies she had learned from her parents. She spoke with serious purposefulness; her steady voice revealed her deep conviction. William joined his mother’s circle of instruction before he could comprehend all her teachings. And each Sunday the whole family attended the Lutheran Church services in Esperke where the family prayers were supplemented with more formal worship.

From here, the article goes downhill.

At the end of the article, we learn:

Anthony Migchels is an Interest-Free Currency activist and founder of the Gelre, the first Regional Currency in the Netherlands. You can read all of his articles on his blog Real Currencies

In short, he is a Greenbacker. He believes in the same fiat money utopia that Ellen Brown promotes. But, when compared to Mr. Migchels, lawyer Brown is a Pulitzer-Prize candidate in history.

Far from defending freedom, the Illuminati created Libertarianism to reflect their Social Darwinian and racial supremacist ideology. With its opposite twin, Communism, they control the dialectic. The efficacy of this tactic is demonstrated by their duping the “Truth Movement.”

I am not sure how he got from William Volker to the Illuminati. But, in the wacky world of Greenbackism, anything is possible. “Connecting the dots” produces some truly dotty connections. This article is among the dottiest.

“You say that Marxism is the very antithesis of capitalism, which is equally sacred to us [Illuminati Jewish bankers.] It is precisely for this reason that they are direct opposites to one another, that they put into our hands the two poles of this planet and allow us to be its axis. These two contraries, like Bolshevism and ourselves, find their identity in the International.” ~ Otto Kahn, Investment Banker

I hope Mr. Kahn was better at investing than he was in social theory.

Actually, there is no record that Mr. Kahn ever said this. He was a highly successful banker and a literate author. We have here another example of an invented quotation. It is a way of life for Greenbackers.

William S. Volker (1859-1947) was a wealthy German-Jewish businessman. Dismayed by the rise of socialism in America, he created the Volker Fund to support a reactionary ideology based on “laissez-faire” and Social Darwinism. This was to become Libertarianism.

Volker created the Volker Fund in 1932 to finance hospitals and charities. Only late in his career did he use the Fund’s money for ideological purposes: local civic government education. He lived in Missouri, and he was a long-time critic of boss Tom Pendergast and Pendergast’s hand-picked local politician, Harry Truman. This did not make him a member of the Immuminati.

Libertarianism and its twin sister Austrian Economics were invented by the Money Power to be the opposite of Communism in a dialectic.

Well, all I can say is that the Money Power sure has short-changed me for 50 years. Here I am, a certified running dog of the capitalist class, and I have had to bankroll myself since 1967.

Anyway, the author believes in Marx’s dialectic. This indicates a certain lack of perception on his part. The Marxian dialectic had some tough times back in 1991. You may have read about this. The Communist Party did the unforgivable. It committed suicide. It handed over the infrastructure to the party’s insiders and cashed out. Marx called this the “cash nexus.” Boy, was he right!

So, the Money Power invented Austrian economics (developed by Karl Menger in 1871) and libetarianism (a term coined by Leonard E. Read around 1946) in order to fight Communism (created in 1848 by an unemployed Ph.D. and his capitalist donor). The Money Power in 1871 was really smart. It spotted a couple of Gentiles to do the deed. Menger’s disciple, Eugen von Bohm-Bawerk, another Gentile, did not write his first critique of Marx until 1884, a year after Marx died. He buried this critique in a long, detailed book, History and Critique of Interest Theories, which almost no has ever one read. Why didn’t they come to him and say this? “Look, Eugen, publish your Marx critique as a pamphlet. You have just got to come up with a better title. This might work: Marx Was a Commie. That will sell a lot better.” How they could have foreseen that Menger would launch the Austrian School remains a mystery to every other historian of Communism and libertarianism. I say this as the author of a 1968 book on Marx.

According to this amazing report, (from which all non-specified quotes here are taken,) “Volker was no great scholar or thinker. The ideology he set out to create was built upside down, starting only with a set of foggy conclusions for which he had a predisposition. From these conclusions, it was the task of Volker’s considerable fortune to find a set of justifications, then an enabling ideology or “theory” that gave it all perspective and unity and, eventually, a true philosophical platform from which to launch the whole.”

Whoever wrote that amazing report has some serious problems with grammar. “. . . it was the task of Volker’s considerable fortune to find a set of justifications. . . ” I can visualize it. There was that considerable fortune, sitting at its desk, planning a series of justifications. Then the fortune called in Volker and said, “Look, Bill, you have got to spend me more effectively. Now here’s my plan. . . .”

The anonymous author speculates that Volker was a secret fascist. He offers no evidence. You may recall how well the Jewish Money Power did in Germany, 1933-45. But I digress.

Even though Volker was not an economist or philosopher he had money and, very important, influential relations with the University of Chicago, founded by John D. Rockefeller.

This turned out to be a crucial connection.

Exactly what a man who sold lampshades and window blinds wholesale in the Midwest had to do with the University of Chicago is not clear. There is no reference to the University of Chicago in Mr. Anonymous. In Chapter XXIV, we do learn that Volker wanted to fund civil education in local government, beginning in 1940. This was eight years after the William Volker Fund began.

Volker’s nephew Harold Luhnow took over the Fund in 1944.

This is the first accurate statement in the article.

Friedrich Hayek’s The Road to Serfdom was published the same year. With its defense of ‘laissez-faire’ capitalism and claim that any attempt at regulation would inevitably lead to totalitarianism, it was exactly what the Volker Fund wanted. It arranged for a reprint of Hayek’s book with the University of Chicago and made sure the book ended up in every library in the United States.

First, there is no evidence offered for this. Second, if true, it is not clear how Luhnow arranged this. It sounds like a very good idea. Frankly, having worked for Luhnow in the summer of 1963, I am amazed that he figured out this strategy. He may have lost some of his edge.

The Volker Fund would finance all the leading Austrian Economists and would have a substantial impact on the ‘Chicago School of Economics’, including Milton Friedman.

This is true. I even had a summer job there in 1963. It was the best salaried job I ever had. They paid me to read.

Ludwig Von Mises, who never held a paid job at any University, was maintained first by David Rockefeller and then for decades received money from the Volker Fund and related business men, like Lawrence Fertig.

There is no evidence that David Rockefeller ever gave Mises a dime. Fertig did. He was a free market-promoting businessman, the author of a book on the market, Prosperity Through Freedom (1961).

Von Mises’ biographer, Richard M. Ebeling:

“Many readers may be surprised to learn the extent to which the Graduate Institute and then Mises himself in the years immediately after he came to United States were kept afloat financially through generous grants from the Rockefeller Foundation. In fact, for the first years of Mises’s life in the United States, before his appointment as a visiting professor in the Graduate School of Business Administration at New York University (NYU) in 1945, he was almost totally dependent on annual research grants from the Rockefeller Foundation.”

This is true. It has been known to anyone who read Mises’ book, Omnipotent Government: The Rise of the Total State and Total War (1944). In the “Acknowledgment,” he thanked the Rockefeller Foundation and the National Bureau of Economic Research (NBER). Note: his theory of economic epistemology was totally at odds with the NBER. But the NBER liked this project.

David Rockefeller said: “Finally, in his most surprising statement, he revealed he considers himself a follower of the Austrian school of economics. Friedrich Hayek had been his tutor at the London School of Economics in the 1930s.”

There is no trace of any of Hayek’s ideas in anything David Rockefeller has said or done. Hayek clearly wasted his time on David Rockefeller.

Murray Rothbard too was financed by the Volker Fund:

“Rothbard began his consulting work for the Volker Fund in 1951. This relationship lasted until 1962, when the VF was dissolved. A major part of Rothbard’s work for the VF consisted of reading and evaluating books, journal articles, and other materials. On the basis of written reports by Rothbard and another reader – Rose Wilder Lane – the VF’s directors would decide whether to undertake massive distribution of particular works to public libraries.

Rothbard later called his work with the Volker Fund, “the best job I’ve ever had in my life.”

Rothbard and I agreed. It was the best job we had in our lives. I got $500 a month in 1963 – a princely sum in 1963 for a 21-year-old kid in his first real job. Rothbard got free books and minimal payments to write the reviews. Rothbard got free books and $6,000 a year.

Read the rest of the article

February 20, 2012

Gary North [send him mail] is the author of Mises on Money. Visit He is also the author of a free 20-volume series, An Economic Commentary on the Bible.

Copyright © 2012 Gary North