43
309 Caldwell describes himself as a ‘renowned Hayek scholar’ who ‘also contributes a masterly introduction that provides biographical and his- torical context.’ And the fifteenth volume of his University of Chicago Press’ Collected Works of F. A. Hayek series, e Market and Other Orders, forms the ‘definitive compilation of Hayek’s work on spontaneous order’ in which the author attempts to come to terms with the ‘knowledge problem’ thread. 1 e ‘knowledge problem’ ‘needle’ was threaded in the tax-exempt Scholar’s Edition of Human Action (1998)—by deleting Mises’ lobby- ing for the Warfare State; Definitive Edition, where Hayek’s motive for writing e Constitution of Liberty (2011 [1960])—to market to ‘Fascist’ dictators such as Salazar—is not reported; 7 Power, Terror and Rights: An Overview Chronology © e Author(s) 2019 R. Leeson, Hayek: A Collaborative Biography, Archival Insights into the Evolution of Economics, https://doi.org/10.1007/978-3-319-78069-6_7 1 http://www.press.uchicago.edu/ucp/books/book/chicago/M/bo16956655.html.

Power, Terror and Rights: An Overview Chronology... · 310 R. Leeson • Denite Edition of the Road to Serfdom (2007 [1944]) which fails to mention the oral history interviews in

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Caldwell describes himself as a ‘renowned Hayek scholar’ who ‘also contributes a masterly introduction that provides biographical and his-torical context.’ And the fifteenth volume of his University of Chicago Press’ Collected Works of F. A. Hayek series, The Market and Other Orders, forms the ‘definitive compilation of Hayek’s work on spontaneous order’ in which the author attempts to

come to terms with the ‘knowledge problem’ thread.1

The ‘knowledge problem’ ‘needle’ was threaded in the tax-exempt

• Scholar’s Edition of Human Action (1998)—by deleting Mises’ lobby-ing for the Warfare State;

• Definitive Edition, where Hayek’s motive for writing The Constitution of Liberty (2011 [1960])—to market to ‘Fascist’ dictators such as Salazar—is not reported;

7Power, Terror and Rights: An Overview Chronology

© The Author(s) 2019 R. Leeson, Hayek: A Collaborative Biography, Archival Insights into the Evolution of Economics, https://doi.org/10.1007/978-3-319-78069-6_7

1http://www.press.uchicago.edu/ucp/books/book/chicago/M/bo16956655.html.

310 R. Leeson

• Definite Edition of the Road to Serfdom (2007 [1944]) which fails to mention the oral history interviews in which Hayek implicitly con-firms the authenticity of Herman Finer’s (1945) account of his ‘thor-oughly Hitlerian contempt for the democratic man’; and

• The Market and Other Orders (2013) which neglects to report that Hayek insisted that the spontaneous order would have to be recon-structed (Chapter 5).

As ‘Fred’ Hayek (a serial liar and thief ) and ‘Lew’ Mises (a card-carrying Austro-Fascist and ‘Ludendorff and Hitler’ promoter), the ‘free’ market would be led by those who would be excoriated—not revered—by the Murdoch-owned press. Faith-based ‘knowledge’ differs from scientific evidence—but Second Estate ‘vons’ appear closer to ‘God’ and con-jure-up a magisterial image.

Every major assertion made by Caldwell about his fund-raising icon is either or flatly contradicted or not supported by the archival evi-dence (that he seeks to monopolise). According to Caldwell, ‘Caldwell begins’ Hayek’s Challenge an Intellectual Biography ‘by providing the necessary background for understanding Hayek’s thought.’2 This ‘nec-essary background’ does not include the archival evidence about Hayek’s proto-Nazi and later card-carrying Nazi family; nor Hayek’s visceral rac-ism and anti-Semitism; nor the seminal influence exerted on Hayek by Spann, ‘The Philosopher of Fascism’ (Polanyi 1934, 1935).

Hitler absorbed anti-Semitism from prominent proto-Nazi and later card-carrying Nazi families like the von Hayeks; and Heinrich von Hayek may have been a war criminal (Hildebrandt 2013, 2016). Heinrich Himmler was directly responsible for the Holocaust; and his daughter, Gundrum, married a party official in the Bavarian section of the far-right Nationaldemokratische Partei Deutschlands (National Democratic Party of Germany), and was affiliated with Die Stille Hilfe für Kriegsgefangene und Internierte (‘Silent assistance for prisoners of war and interned persons’), a relief organization for arrested, condemned

2http://www.press.uchicago.edu/ucp/books/book/chicago/H/bo3624545.html.

7 Power, Terror and Rights: An Overview Chronology 311

and fugitive Nazis set up by Helene Elisabeth, Princess von Isenburg. Stille Hilfe assisted Klaus Barbie (‘the Butcher of Lyon’) to escape to Bolivia and Adolf Eichmann, Josef Mengele and others to escape to Argentina. The Guardian reported that Gundrum Himmler

‘created a golden image of her father and she will do anything to keep that,’ says someone who knows her. Ironically, Himmler was known to be a poor father, a violent and unfaithful man who neglected his children, so the image Ms Burwitz is trying to create may well be of the father she wishes she had.

As Billy Graham observed, religious ‘knowledge’ is consumed by the lonely, the guilty and those who fear death.3 Boettke (2009) reflected about Fink’s ‘locker room’ speech: ‘After that speech, Rich’s appearances at CSMP dwindled due to his increasing involvement with CSE. But everytime he showed up, there was an electricity that was absent when he wasn’t there.’ And during the parts of two summers that Caldwell asked to spend with the AIEE editor while he sought employment in California, a tragic personality trait was revealed: Hayek was his ‘Holy Father.’ Those who sell ‘consumer sovereignty’ aspire to possess producer sovereignty—Caldwell’s contribution to ‘free’-market religion may shed light on other episodes of religious ‘knowledge’ construction and dissemination.

Karl Marx’s historical materialism prescribed the direction of history—towards classless communism through the cathartic victory of the proletariat; while others such as H. A. L. Fisher (1939, ix) detected nothing of the kind: ‘Men wiser and more learned than I have dis-cerned in history a plot, a rhythm, a predetermined pattern. These har-monies are concealed from me. I can see only one emergency following upon another as wave follows upon wave.’ Yet from the vantage point of the twenty-first century, some patterns are evident. Military histori-ans examine victory and defeat, and all ‘local’ history takes place—and is written—in the ‘global’ context of societal victory and defeat. The defeated can regroup and ‘live to fight another day.’

3PBS Newshour, 21 February 2018. http://www.thirteen.org/programs/pbs-newshour/billy- graham-1519256030/.

312 R. Leeson

This chapter provides a ‘time as context’ overview chronology of three major societal conflicts: between absolutism and oligarchy (feudalism), between oligarchy and the ‘people’ (neo-feudalism), and between financial, industrial and service sector ‘barons’ and democracy (new- feudalism). Behind The Divine Right of the ‘Free’ Market lies a conflict between two concepts of civilisation: ascribed status versus the achieved status associated with universal voting rights for adults and universal compulsory and subsidised education for their children.

In ‘The Foundations of Liberal Policy,’ Mises (1985 [1927], 19, 51, 111, 115) stated that the ‘program of liberalism, therefore, if con-densed into a single word, would have to read: property [Mises’ empha-sis] … All the other demands of liberalism result from this fundamental demand … The victory of Fascism in a number of countries is only an episode in the long series of struggles over the problem of property.’ Liberals, he asserted, also seek to create the ‘social conditions’ that will ‘eliminate’ the causes of war. The first requirement in this regard is ‘private property … once there is free trade and the state restricts itself to the preservation of private property, nothing is simpler than the solution of this problem.’ In addition: ‘There is, in fact, only one solution: the state, the government, the laws must not in any way con-cern themselves with schooling or education. Public funds must not be used for such purposes. The rearing and instruction of youth must be left entirely to parents and to private associations and institutions.’

1 The Façade and Secular Power of Faith

312: according to the unreliable Eusebius of Caesarea, Emperor Constantine’s victory at the Battle of the Milvian Bridge was made pos-sible by his conversion to Christianity.

325: Constantine creates and funds the Roman Catholic Church by establishing the ‘nature’ of Jesus (the Nicene Creed).

390: Ambrose, Bishop of Milan, excommunicates Theodosius I (and readmits the Emperor to the Eucharist after several months of penance).

391: pressure from ‘Saint’ Ambrose leads to the Theodosian decrees which condemned the millennium-long religious practices of Rome as

7 Power, Terror and Rights: An Overview Chronology 313

satanic heresy. Ambrose warns against intermarriage with pagans, Jews, or heretics.

395: Theodosius I becomes the last Emperor to rule over both the Eastern and Western halves of the Roman Empire.

410: for the first time in almost eight centuries, Rome falls to a for-eign enemy: the Visigoth ‘Sack’ of ‘the eternal city’ and spiritual centre of the Empire. Christian Rome becomes a failed state.

2 Feudalism (Absolutism Versus Oligarchy); Neo-Feudalism (Oligarchy Versus ‘the People’)

800: Pope Leo III crowns the Frankish King Charlemagne as Emperor. Feudalism flourishes for approximately six centuries.

962–1806: the Habsburgs dominate the Holy Roman Empire.1054: the East–West Schism: the Eastern Orthodox and Western

Catholic Churches excommunicate each other.1096–1487: the Crusades leads to the murder of thousands of Jews (the

Rhineland massacres) and the establishment of chivalric societies of Knights.1170: Thomas Becket, the Archbishop of Canterbury, in conflict

with Henry II, is murdered by the King’s barons.1215: conflict between the House of Anjou and their ‘subjects’ results

in ‘the Great Charter of the Liberties’ (Magna Carta).1258: the Provisions of Oxford forces upon Henry III a council of 24

members (12 selected by the crown, 12 by the barons) who via ‘voting’ would select a 15-member Privy Council to advise the king and oversee government. Parliament would meet three times a year to monitor the performance of this council.

1273–1276: Rudolph of Habsburg becomes King of Germany and ruler of Austria.

1348: Edward III establishes an English chivalric order: the Most Noble Order of the Garter.

1351: the Treason Act decrees that those who rebel against (threaten the ‘property’ of ) English Monarchs will be hanged, drawn and quartered.

314 R. Leeson

1381: dynastic warfare—the Hundred Years’ War for control of France (between the House of Plantagenet against the House of Valois)—contributes to the Peasants’ Revolt: the Third Estate demand a reduction in taxation and an end to serfdom.

1399: England’s Richard II is deposed by barons.1478–1834: during the reign of Holy Terror, the Spanish Inquisition

uses torture to interrogate about 150,000 ‘heretics’ and execute thousands.

1487: Malleus Maleficarum (‘Hammer of the Witches’) results in the execution of 40,000–60,000 women.

1494: the Treaty of Tordesillas divides the newly-discovered lands outside Europe between Portugal and the Crown of Castile.

1517–1648: the Protestant Reformation weakens the power of the ‘intermediary’ and leads to prolonged religious warfare.

1521: the Habsburg dynasty splits into a junior (Austrian Habsburgs) and a senior branch (Spanish Habsburgs).

1564: ‘Jesus’ arrives in Spanish American carrying the first cargo of African slaves.

1606–1609: James I begins the ‘civilising’ Protestant ‘plantation’ of Catholic Ulster.

1607: the Virginia Company of London establish the British Empire’s first permanent settlement (Jamestown, named after King James).

1617: the Oñate secret treaty further divides Habsburg ‘property’ between the Austrian and Spanish branches.

1619: the first slave ship arrives in British America.1620: the Pilgrim Fathers sign the Mayflower Compact: a majoritar-

ian civil contract or covenant which provides the basis for a secular gov-ernment in America.

1628: the British Parliament constructs the Petition of Right that delineates the specific liberties of the ‘subject’ that the King is prohibited from infringing (restrictions on non-Parliamentary taxation, forced billet-ing of soldiers, imprisonment without cause and the use of martial law).

1629–1640: James’ son, Charles I, dissolves Parliament, imprisons nine parliamentary leaders, begins the ‘Eleven Years’ Tyranny,’ before finally being obliged to recall Parliament to levy taxes.

7 Power, Terror and Rights: An Overview Chronology 315

1642–1660: the English Civil War leads to the replacement of Monarchy with what is later called the Interregnum (Commonwealth of England, 1649–1653, and then Protectorate under Oliver Cromwell’s personal rule, 1653–1659). Charles had denied the authority of the court set up by Parliament on the grounds that ‘no earthly power can justly call me (who am your King) in question as a delinquent.’ After his trial and execution, the ‘Divine Right of Kings’ ceases to be a potent catchword. The massacre of civilians during the Cromwellian conquest of Ireland (1649–1653) leaves a lasting dysfunctional legacy which in the 1970s provokes revenge on the British mainland. Charles, the Stuart Pretender, is invited to ‘resume’ ‘his’ crown. On 8 May 1660 (coinci-dentally, 239 years before Hayek’s birth), Parliament proclaimed that Charles II had been the lawful monarch since the execution of his father, Charles I (30 January 1649).

1672: under the reign of Charles II, State debt is repudiated (the Great Stop of the Exchequer).

1683–1699: the siege of Vienna is lifted and victory achieved in the War of the Holy League against the Ottoman Turks. The Turkish invasions provide the Habsburgs with a ‘mission [as] defenders of Christianity.’ A ‘new, Imperial aristocracy’ emerged: ‘the hangers-on of the Habsburgs.’

1689: John Locke’s Two Treatises of Government delineate a social contract theory in opposition to the organic ‘divine right of kings.’

Parliament passes the Bill of Rights which limits the powers of the Monarch and establishes the rights both of Parliament (regu-lar parliaments, free elections and freedom of speech) and of the individual (including the prohibition of cruel and unusual punish-ment). Parliament invites William (of Orange) and Mary to become Constitutional Monarchs.

1690: in the Battle of the Boyne, James the Stuart Pretender is defeated by William of Orange.

Defeat at the Battle of Beachy Head forces the British to rebuild their Navy.

1694: the Bank of England is established to assist government fund-raising.

316 R. Leeson

1700: the inbred (senior) Spanish Habsburgs become extinct. On his deathbed, Charles II distributes the Spanish component of his vast European ‘property’ to Philip, Duke of Angie, which sparks the first Habsburg-influenced ‘World’ War: the War of Spanish Succession.

1720: the bursting of the (insider-trading-driven) South Sea Bubble leads to widespread economic hardship.

1723: in England, the Black Act introduces the death penalty for over 50 criminal offences, including being found in a forest while disguised.

1740–1748: the male line of the inbred (junior) Austrian Habsburgs becomes extinct with the death of the Holy Roman Emperor, Charles VI. Salic law did not allow his daughter, Maria Theresa, to inherit Habsburg ‘property’—which results in the second Habsburg-influenced ‘World’ War: the War of the Austrian Succession (including King George’s War and the War of Jenkins’ Ear in the Americas, the First Carnatic War in India, and the First and Second Silesian Wars).

1772–1795: Poland is partitioned by the Romanovs, Hohenzollerns and Habsburgs.

1773–1775: Pugachev’s Rebellion (the largest peasant revolt in Russian history) offered the prospect of the abolition of serfdom. The Romanovs (reigned: 1613–1917) survive and the rebellion is followed by savage reprisals.

1780: with Maria Theresa’s death, the Austrian Habsburgs become totally extinct and are succeeded by the House of Lorraine, who adopt the title Habsburg-Lorraine and become known simply as the Habsburgs.

1783: at the Temple of Virtue, George Washington’s Newburgh Address neutralises a potentially seditious meeting of disgruntled officers who had met to discuss a proposal to march on Congress and make demands at gunpoint.

1789: the bogus-titled Habsburgs allow Hayek’s family to jump from the Third Estate (commoners) to the Second (nobles) by attaching ‘von’ to their name.

1789–1791: with the assistance of the House of Bourbon, the American colonists defeat the House of Hanover: George Washington becomes President of the American Republic and received an array of

7 Power, Terror and Rights: An Overview Chronology 317

powers in excess of those wielded by some European monarchs—he had a pardoning power, could veto legislation (something no British mon-arch had done since 1707) and was commander-in-chief of the armed forces (1743 was the last time a British king had led an army, at the Battle of Dettingen). The House of Representatives is given the sole power of impeachment and the Senate the sole power to try impeach-ments of ‘The President, Vice President, and all civil officers of the United States’ (who may be impeached and removed only for ‘treason, bribery, or other high crimes and misdemeanors’).

1791: the VIII Amendment prohibits ‘cruel and unusual punishment.’

1789–1815: the Bourbon’s financial crisis obliges Louis XVI to sum-mon the Estates General (for the first time since 1614). His execution (1793) further diminishes the potency of the ‘Divine Right of Kings’ catchword. The French Revolution creates social revolution, Red and White Terror, and undermines many of the remaining foundations of feudalism: the Holy Roman Empire is dissolved.

1813: Prussia’s declaration of war against Napoleon is accompanied by Frederick William III’s appeal To My People: the war is ‘for liberty and independence, for God, country and King.’ Later, this becomes ‘God, King and Country’; and after the ‘Great’ War, ‘God, Dictator and Producer.’

1815: after the Duke of Wellington defeats Napoleon, the slogan of ‘Justice, Peace and Love’ is used by Prince Metternich’s Congress of Vienna in an effort to preserve the neo-feudal spontaneous order and prevent dynastic warfare.

1819: the Peterloo Massacre: the British cavalry charge into a large crowd (who were demanding the reform of parliamentary representa-tion). Lord Wellington states that the campaign for democracy will go on ‘till some of their leaders are hanged.’

1823: in Britain, the Black Act is repealed.1832: the ‘Iron Duke’ of Wellington is forced to protect his house

with iron shutters. Faced with social revolution and the threat that William IV will swamp the House of Lords with new peers, the Barons retreat and allow the passage of the Representation of the People Act.

318 R. Leeson

1838–1858: the People’s Charter demands universal adult male suf-frage; secret ballots; no property qualification for MPs, payment of MPs, equal constituencies and annual parliament elections.

1839–1860: two Opium Wars against China and the resulting ‘une-qual treaty’ creates a lasting sense of anti-Western animosity. According to Mises, at ‘stake was the general freedom of trade and not only the freedom of the opium trade.’

1844: the founder of the Mormon religion, Joseph Smith, is mur-dered by a proto-Klan mob.

1846: British agricultural oligarchic retreat: repeal of the Corn Laws.1848: Metternich’s coordinated Concert of Europe is confronted by

the (uncoordinated) ‘Year of Revolution’: an ad hoc coalition of reform-ers and elements of the (parliamentary) extramural classes which seeks to remove the old feudal structures by extending democracy, estab-lishing freedom of the press, and creating independent nation states. Serfdom is abolished in Austria and Hungary, absolute monarchy ends in Denmark, parliamentary democracy introduced in the Netherlands, and the Capetian monarchy in France falls. The losers—the beneficiar-ies of neo-feudalism, royalty and the aristocracy, and their props, army and church—are determined to protect their ‘liberty.’

1853–1854: nine decades before the airship attacks on Pearl Harbor, Hiroshima and Nagasaki, American gunboat diplomacy ends Japan’s 220-year-old policy of isolation.

1861: the road from serfdom in Russia.1865–1965: ex-slaves are denied the ‘blessings of liberty’ by

the ex-Confederate States: the intent of the three Reconstruction Amendments is sabotaged (the XIII, abolishing slavery; the XIV, creat-ing the privileges and immunities clause, applicable to all citizens; and making the due process and equal protection clauses applicable to all persons; and the XV, prohibiting discrimination in voting rights of citi-zens on the basis of ‘race, color, or previous condition of servitude.’)

1866: defeat in the Austro-Prussian War symbolises the relative decline of the Habsburgs.

1871: defeat in the Franco-German War is a major cause of the Paris Commune.

7 Power, Terror and Rights: An Overview Chronology 319

The labour theory of value is removed from classical economics and replaced by consumer demand: three branches of the neoclassical school emerge. The British branch comes to be organised around market fail-ure (requiring taxes and subsidies) and ‘the middle way.’ In classical economics, ‘rent’ is something that can be taxed-away: Keynes (1936) advocates the ‘euthanasia of the rentier.’ The Austrian and Lausanne branches come to be organised around ordinal utility (taxation is not, therefore, Pareto optimal) and the embrace of ‘Fascists’ as protectors of ‘property.’

1878: the Congress of Berlin attempts to facilitate an orderly ‘scram-ble for Africa.’

1879: the Habsburgs and Hohenzollerns form a military alliance.1881: the Habsburgs turn Mises’ family from ‘Men’ to ‘Knights

on Horseback’ (by jumping an Estate, from the Third to the Second). The ‘von’ Mises’ coat of arms contained the ‘Stars of the Royal House of David, a symbol of the Jewish people.’ Six decades later, another Austrian forces all those with non-‘Aryan’ bloodlines to wear this coat of arms on their coats; the railways, for which the Mises family were enno-bled, transport millions to extermination camps.

1882: the Habsburgs and Hohenzollerns form a military alliance with the Kingdom of Italy (the Triple Alliance).

1896: the Utah Mormons receive a divine message (that overturns a previous divine message), ban polygamy, and are admitted to the Union as the 45th state.

1898–1934: during the Banana Wars, the US military frequently intervenes in Central America and the Caribbean.

1899: von Hayek is born into a prominent proto-Nazi Viennese family.

1905: Alisa Zinov’yevna Rosenbaum is born to a Jewish bourgeois family in neo-feudal Russia; she later changes her name to Ayn Rand and establishes a cult which underpins recruitment to the Austrian School of Economics.

1907: the petit bourgeois Hitler arrives in Vienna and absorbs the prevalent anti-Semitism.

The Triple Entente is formed (Romanov Russia, Britain and France).

320 R. Leeson

1908: the Young Turk revolution seeks to end the absolute rule of Sultan Abdul Hamid II.

1909: in Greece, the Goudi coup overthrows the government.1910: a coup deposes Manuel II of Portugal and establishes the

Portuguese First Republic.Mises promotes the Habsburg Warfare State and, referring to a fel-

low member of the Triple Alliance, states that in the presence of the Italy’s ‘enormous naval armaments’ which were ‘aimed directly’ against Habsburg territory, ‘our navy’ will be also forced to construct some dreadnoughts.

1911: the assassination of the reforming Prime Minister Pyotr Arkadyevich Stolypin appears to end any possibility that the Romanovs will adapt.

1912–1933: the USA occupies Nicaragua (part of the Banana Wars)1913: George I of Greece is assassinated.1914–1919: the assassination of the heir to the Habsburg throne pro-

vokes (or justifies) the third Habsburg-influence World War and leads to Austria’s ‘system of extermination’ against the Serbs.

Max von Oppenheim convinces Kaiser Wilhelm that Islam could become Germany’s secret weapon via a jihad against Britain and France from within their colonial territories (India, Africa and Indo-China). Franz von Papen is attached to the Ottoman Army in Palestine and serves as an intermediary with the Indian nationalists in the ‘Hindu German Conspiracy.’

The Central Powers launch Zeppelin air raids against civilians and seek to promote an Irish rebellion against British rule and a Mexican invasion of the USA (to ‘retake’ Arizona, New Mexico and Texas). As a prelude to the 1916 Easter Rising, von Papen serves as a gunrunning intermediary between the Irish rebels and the German government.

The Romanovs are overthrown and replaced by a Provisional Government of the Russian Republic (which is officially recognised by the USA, Britain, France and Italy). With Ludendorff’s approval, Lenin returns to Russia on a sealed train—the first (proto-)Nazi-(proto-)Soviet Pact—and the Bolsheviks overthrow the Republic. In August 1917, the Russian Commander-in-Chief General Kornilov attempts a Putsch

7 Power, Terror and Rights: An Overview Chronology 321

against the Russian Provisional Government headed by Alexander Kerensky which is rapidly defeated.

The Austro-German plan succeeds: the Eastern Front is vacated (through the proto-Nazi/Soviet Treaty of Brest-Litovsk). ‘Peace’ assists the Bolshevik to defeat their White Terror Civil War opponents and thus export Red Terror. Allied intervention in support of White Russian forces (1918–1925) provides the Bolsheviks with a propaganda coup. The Third Communist International (1919–1943) sets up numerous Communist Parties: including the USA (1919), Britain (1920), Chile (1922) and Vietnam (1930).

Five months after the overthrow of the Romanovs, the House of Saxe-Coburg and Gotha change their name by Royal proclamation to the House of Windsor. Another five months later, the Chequers Estate Act of 1917 turns a donated property from Arthur Hamilton Lee, 1st Viscount Lee of Fareham, into the official ‘country residence’ of the Prime Minister: Lloyd George, the son of a schoolteacher, becomes the first inhabitant. In the twentieth century, 1200 English country houses are demolished.

‘Von’ Mises later describes the philosophy of the ‘advocates’ of an ‘aristocratic revolution’: ‘You have the choice, they say, between the tyr-anny of men from the scum and the benevolent rule of wise kings and aristocracies.’ Therefore, the labourer ‘must be deprived of the franchise. All political power must be vested in the upper classes. Then the pop-ulace will be rendered harmless. They will be serfs, but as such happy, grateful, and subservient. What the masses need is to be held under tight control. If they are left free they will fall an easy prey to the dic-tatorial aspirations of scoundrels. Save them by establishing in time the oligarchic paternal rule of the best, of the elite, of the aristocracy.’

And ‘von’ Hayek later reflects about ‘The whole traditional concept of aristocracy, of which I have a certain conception-- I have moved, to some extent, in aristocratic circles, and I like their style of life.’ As Economic Consultant to the Austrian General Staff, Mises reports: ‘Aside from its general political and economic harmful effects, emigra-tion also involves military disadvantages as well. In the decade before the war, the monarchy [emphasis added] permanently lost at least

322 R. Leeson

250,000 conscripts in this way.’ Mises also promotes Austro-German Lebensraum.

Unrestricted Austro-German submarine warfare provokes the USA to enter the war. President Woodrow Wilson’s 14 Points seeks to replace the neo-feudal ‘spontaneous’ order with democracy. Lieutenant Mises and the teenage ‘Lieutenant’ Hayek fight ‘to prevent the ‘world from being made safe for democracy.’ Previously, democrats had contested with aristocrats and their allies; henceforth, they would confront Red, White and Holy Terror.

3 Democracy and the Dynastic Inheritance: From ‘the Knight’ to ‘the Man on Horseback—The Role of the Military in Politics’

After the Habsburgs and Hohenzollerns are overthrown, von Ludendorff dons a false beard and escapes to neutral Sweden and prop-agates the stab-in-the-back myth (to shift responsibility for the Austro-German defeat onto the ‘November criminals’—democrats and Jews). With ‘an easy conscience,’ Ludendorff would have democratically elected politicians ‘hanged, and watch them dangle.’

100,000 Jews are liquidated, mostly by White Terror Romanov loyalists.

The ‘victorious’ allies act, in effect, as recruiting agents for ‘Ludendorff and Hitler’ et al. by transferring dynastic war guilt and rep-arations onto the Weimar and Austrian First Republics.

Ho Chi Minh’s failure to gain a hearing for his case for Vietnam’s inde-pendence from France at the Versailles ‘Peace’ conference leads him to aban-don faith in Wilsonian idealism in favour of ‘the formula of Karl Marx: we say to you that your liberation can only come by your own efforts.’

Cuba becomes a mafia-controlled ‘playground’ for Americans (assisted by the XVIII Amendment—the prohibition of alcohol).

The ‘Second’ Klu Klux Klan attracts between 4 and 5 million members: about 15% of the eligible ‘nativists’ population (American-born white

7 Power, Terror and Rights: An Overview Chronology 323

Protestants). Their animosity is focused primarily on blacks, Catholics, Jews, immigrants and bootleggers.

24 October 1918: a Naval Order leads to mutiny in the German Fleet.

3 November: the Kiel mutiny leads to the overthrow of the Hohenzollerns.

9 November: a Republic is declared, Emperor Wilhelm II abdicates and flees Germany.

14 November: in Poland, Józef Piłsudski becomes head of the Second Republic.

4–5 January 1919: right-wing National Democrats led by Prince Eustachy Kajetan Sapieha attempt to overthrow the Second Polish Republic.

4–15 January: in Germany, the communist Spartacist uprising is crushed by the army and Freikorps militia—a (proto-)Nazi-Soviet Civil War.

19 January: elections for the new Weimar National Assembly are held.3 April: the status of ‘German Austrian citizens’ equal before the law

‘in all respects’ is forcibly imposed on Austrian nobles: Hayek and Mises and the rest of the Habsburg Second Estate are stripped of their nobil-ity and become common criminals by attaching ‘von’ to their names. The Austro-Hungarian Empire ends. The Austria First Republic (1919–1934) is denigrated by Hayek as a ‘republic of peasants and workers’ and by Mises as ‘contemptible’: Mises declares that Austro-German Anschluss is ‘a political and moral necessity’ and will become the ‘starting point of a new calm and peaceful development in German affairs.’

21 March: communists led by Béla Kun announce the establishment of the Hungarian Soviet Republic.

July: facing prosecution, the Preface of Nation, State and the Economy is signed ‘Professor Dr. L. Mises.’ Mises sees himself as a one-man anti-Comintern force: ‘The most important task I undertook dur-ing the first period, which lasted from the time of the monarchy’s col-lapse in the fall of 1918 until the fall of 1919, was the forestalling of a Bolshevist takeover. The fact that events did not lead to such a regime in Vienna was my success and mine alone. Few supported me in my efforts, and any help was relatively ineffective.’

324 R. Leeson

6–7 August: after a counter-revolutionary coup, Archduke Joseph appoints István Friedrich as Hungarian Prime Minister.

11 August: the Weimar Constitution is adopted.12 September: Hitler attends his first meeting of Deutsche

Arbeiterpartei (German Workers’ Party), whose members ‘were not workers, as the party’s name implies, but representatives of an intellec-tual Bohemia, members of the middle-class economically affected or mentally disorientated by the war.’

1920: the League of Nations is established to promote interna-tional justice as an alternative to social Darwinism. The First Austrian Republic is admitted.

The Kapp Putsch, which aims to overthrow the Weimar Republic and establish a right-wing autocracy, is defeated by a general strike.

1921: in The Political Economy of War, Arthur C. Pigou (a pacifist Western Front ambulance driver) describes the market failure caused by ‘the private interests of makers of armaments’ who ‘promote war scares’ and who were ‘not without influence in the press and through the press on public opinion.’

1921–1925: with British assistance, the Pahlavi dynasty (1925–1979) is established as the ruling House of Iran.

1921–1924: during the Great Inflation, Hitler promotes Austrian business cycle theory: stopping ‘the printing presses … is a prerequisite for the stabilisation of the mark … we will no longer submit to a State which is built on the swindling idea of the majority. We want a dictator-ship … To make us free, we need pride, will, defiance, hate, hate, and hate again.’

1922: defeat in the Greco-Turkish War forces Constantine I of Greece to abdicate and leads to the Second Hellenic Republic (1924–1935).

Mises presents ‘consumer sovereignty’ as an alternative to voting rights for the ‘inferior.’

Benito Mussolini wins power through a ‘March on Rome.’Hitler tells a journalist: ‘Once I really am in power, my first and fore-

most task will be the annihilation of the Jews.’Post-Habsburg Hungary is admitted to the League of Nations.

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The Treaty of Rapallo between Weimar Germany and the Soviet Union.

1923: in Spain, Don Miguel Primo de Rivera y Orbaneja, 2nd Marquis of Estella, 22nd Count of Sobremonte and Knight of Calatrava, installs a dictatorship.

In Bulgaria, the military back a coup.In Greece, a royalist coup is defeated.On the fourth anniversary of the founding of the German Republic,

Ludendorff and Hitler stage a Putsch in Munich: a prelude to a ‘March on Berlin’ and an Anschluss ‘March on Vienna.’ Newspapers report that ‘Hitlerites stormed through the town and invaded first class restaurants and hotels in search of Jews and profiteers.’

1924: following a military coup, Chile is ruled by the ‘September Junta.’

1925: in Greece, General Theodoros Pangalos seizes power.Hitler declares: ‘At the beginning of the war, or even during the war,

if 12,000 or 15,000 of these Jews who were corrupting the nation had been forced to submit to poison gas … then the millions of sacrifices made at the front would not have been in vain.’

1926: the delusional Mises announces ‘the collapse of the ideology of socialism.’

General Gomes da Costa’s ‘March on Lisbon’ ends the Portuguese First Republic and initiates the ‘National Dictatorship.’

In the Polish May Coup, the noble-born Piłsudski announces that he is ‘ready to fight the evil’ of parliamentary democracy (Sejmocracy ) and promises a ‘sanation ’ (restoration to health) of the ‘body politic.’

Post-Hohenzollern Germany is admitted to the League of Nations.1927: in The Road to Restoration, Hitler makes an outreach to

Classical Liberals. One of his targets is ‘international’ (and, therefore, implicitly, not conservative) Jews: ‘Hitler gave an impressive display of his chameleon-like skill at adapting himself and his program to what-ever audience he was at that moment seeking to entice.’

Twelve years before the Nazi-Soviet Pact, Mises proposes himself as the intellectual Führer of a Nazi-Classical Liberal Pact: ‘It cannot be denied that Fascism and similar movements aiming at the establishment

326 R. Leeson

of dictatorships are full of the best intentions and that their interven-tion has, for the moment, saved European civilization. The merit that Fascism has thereby won for itself will live on eternally in history.’ The ‘similar movements’ of ‘bloody counteraction’ that Mises refers to includes the French anti-Semitic ‘l’Action Française ’ plus ‘Germans and Italians.’ With respect to ‘Ludendorff and Hitler,’ Lenin and others who used violence to achieve their political goals, Mises declares: ‘Many arguments can be urged for and against these doctrines, depending on one’s religious and philosophical convictions, about which any agree-ment is scarcely to be expected. This is not the place to present and dis-cuss the arguments pro and con, for they are not conclusive.’

Four years after the formation of the British Fascisti, Edwin Cannan’s An Economist’s Protest contains no praise of ‘Ludendorff and Hitler’ or any other ‘Fascist.’

1928: the Sixth World Congress of the Third Communist International predicts that capitalism had entered its ‘Third Period’—a prelude for proletarian revolution. Social Democrats are denigrated as ‘social fascists’ (in effect, an unintentional second Nazi-Soviet ‘Pact’ or Nazi-assistance program).

1929: in what Caldwell suggests is a reference to Mises’ Liberalism in the Classical Tradition, Hayek, while praising Cannan’s ‘fanatical concep-tual clarity’ and his ‘kinship’ with Mises’ ‘crusade,’ noted that British-Austrians had failed to realise the necessary consequences of the whole system of Classical Liberal thought: ‘Cannan by no means develops economic liberalism to its ultimate consequences with the same ruthless consistency as Mises.’

1929–1933: financial fraud of the ‘pools’ (stock price manipula-tors) contributes towards the Wall Street Crash. Mises and Hayek promote the deflation that helps end the German and Austrian Republics. According to President Herbert Hoover, at the onset of the Great Depression, he is advised by his Austrian (‘Austerian’) Treasury Secretary, Andrew Mellon, to ‘liquidate labor, liquidate stocks, liqui-date farmers, liquidate real estate.’ This structural failure (fraud) and the policy influence of the Austrian School of Economics is interpreted as a failure of markets which adds legitimacy to communism, fascism and economic planning. Mises claims to know that the Credit Anstalt is

7 Power, Terror and Rights: An Overview Chronology 327

going to collapse: a ‘great “crash” would be coming and that he did not want his name in any way connected with it.’ He apparently does noth-ing to alert the authorities. Like Hayek, Mises did not want his name in any way connected with Hitler’s rise to power.

1931 January: the Brauns Commission is appointed by Heinrich Brüning’s government to examine expansionary proposals that might reduce the dramatic rise in unemployment. Hayek writes an article opposing reflation—but tells Wilhelm Röpke: ‘if the political situation is so serious that continuing unemployment would lead to a political revolution, please, do not publish my article.’

January: Hayek gains employment at the London School of Economics by fraudulently claiming to have predicted the Great Depression.

1 March: Sir Oswald Mosley forms the New Party, which is endorsed by the Daily Mail.

11 May: The collapse of Credit Anstalt initiates the second period of the European economic crisis.

Hitler goes on a fund-raising charm-offensive with the business community.

24 August: Ramsey MacDonald—the illegitimate son of a Scottish farm labourer and a housemaid—forms a National Government com-posed of ‘men from all parties’ to balance the Budget and restore ‘confidence.’

18 September: The Japanese invade Manchuria.11 October: the Harzburg Front (as a short-lived right-wing alliance) is

formed—including the German National People’s Party dominated by the press-baron Alfred Hugenberg, the Nazis, the Stahlhelm paramilitary vet-erans’ association, the Agricultural League and the Pan-Germany League.

8 December: with 5 million registered unemployed, President Paul von Hindenburg signs emergency decrees increasing taxes and further reducing wages (by 10–15%), prices and interest rates.

1932: Piero Sraffa, an Italian refugee from Fascism, argues that Hayek’s business cycle theory rests on a mythical concept: the ‘natural’ rate of interest.

January–March: five years after Mises’ proclaims that ‘The victory of Fascism in a number of countries is only an episode in the long series

328 R. Leeson

of struggles over the problem of property. The next episode will be the victory of Communism,’ Mosley states ‘Communism will quickly supersede the woolly-headed and woolly-hearted Social Democrats of Labour, and Communism’s inevitable and historic opponent will arise to take the place of a flabby conservatism.’

5 July: António de Oliveira Salazar becomes Portuguese Prime Minister and establishes a Corporate State with a dictatorial constitution.

10 August: José Sanjurjo launches an unsuccessful rebellion against the Second Spanish Republic.

4 September: Chancellor von Papen introduces ‘Austerian’ deflation-ary measures (wage and benefit cuts).

September: Mises proclaims that ‘after twelve months Hitler would be in power.’

1 October: Mosley launches the British Union of Fascists; and the ‘Fascist’ anti-Semite, Gyula Gömbös de Jákfa, becomes Prime Minister of Hungary.

19 October: in the (London) Times, ‘von’ Hayek argues that a revival of the prices of the (‘pool’-dominated) stock market will revive the economy; while ‘lavish’ government expenditure would be ‘perilous in the extreme.’

17 November: Lieutenant-Colonel von Papen’s ‘Cabinet of Barons’ collapses.

16 December: in a speech to the Deutscher Herrenklub, von Papen declares its time the Nazis were ‘called in.’

1933: having persuaded von Hindenburg to appoint Hitler as Chancellor, von Papen asks: ‘what are you worried about? I have Hindenburg’s confidence. In two months we shall have Hitler squeezed into a corner so that he squeaks.’

Using the justification of the alleged threat of a communist takeover (the Reichstag Fire), Hitler creates an organic ‘Divine Right’ state and ends the Weimar Republic.

The following day, Hayek outlines his own theory of the organic ‘Divine Right’ of the ‘free’ market.

In ‘The Means to Prosperity,’ Keynes makes the commonsensical observation that it should not seem ‘strange that taxation may be so high as to defeat its object, and that, given sufficient time to gather the

7 Power, Terror and Rights: An Overview Chronology 329

fruits, a reduction in taxation will run a better than an increase in bal-ancing the Budget.’

Japan and Germany withdraw from the League of Nations.1934: the Soviet Union is diplomatically recognised for the first time

(by the USA, Spain, Hungary, Czechoslovakia, Romania and Bulgaria).March: Mises becomes a card-carrying Austro-Fascist and a member

of the official Fascist social club two months before Engelbert Dollfuss imposes Clerical fascism.

May: Pravda foreshadows the popular front strategy by commenting favourably on socialist-communist collaboration.

June: Leon Blum’s Socialist Party form a Popular Front with the French Communist Party.

September: the Soviet Union joins the League of Nations.October: the Radical Party join Blum’s Popular Front.March 1935: Hitler repudiates the Treaty of Versailles and officially

begins rearming.May: a five-year Soviet-French Treaty of Mutual Assistance is signed.August: the Seven World Congress of the Comintern formally aban-

don the ‘Third Period’ in favour of ‘The People’s Front Against Fascism and War’ (the Popular Front).

3 October: Mussolini’s Italy invades Ethiopian without a declaration of war.

7 1936 March: Hitler remilitarises the Rhineland (a violation of the Treaty of Versailles).

May: Blum’s Popular Front wins a large majority of parliamentary seats and forms a government.

July: General Francisco Franco launches the Spanish Civil War (which ends the Second Republic and imposes Clerical fascism).

October: Mosley’s Blackshirt march through the East End of London (where many Jews lived) results in ‘The Battle of Cable Street.’

November: the Anti-Comintern Pact between Nazi Germany and the Empire of Japan.

1937: with USA support, Anastasio Samoza becomes Nicaraguan President.

Italy withdraws from the League of Nations.In Nanking, the Japanese massacre tens of thousands of civilians.

330 R. Leeson

1938: Hitler achieves Anschluss. One of Mises’ co-leaders of the third-generation Austrian School, Hans Mayer, expels all non-‘Aryans’ from the Austrian Economics Association, while the other, Othmar Spann, is arrested. Mises is shocked when the Nazis ransack his apart-ment and is physically sick when he is sacked from the Lower Austrian Chamber of Commerce and Industry.

1939: Spain and Hungary withdraw from the League of Nations.3 May: the Jewish Maxim Litvinov is replaced as the Soviet People’s

Commissar for Foreign Affairs by Vyacheslav Molotov.5 August: Admiral the Hon. Sir Reginald Aylmer Ranfurly Plunkett-

Ernle-Erle-Drax is dispatched from Britain to Russia aboard a low-speed steamer.

12 August: at the first British-French-Soviet discussions, Plunkett-Ernle-Erle-Drax is revealed to have no authority to negotiate.

23 August: Molotov and Joachim von Ribbentrop construct the ‘third’ Nazi-Soviet Pact: Poland is partitioned by the successor States of the Romanovs, Hohenzollerns and Habsburgs. Hitler invokes Ludendorff’s myth of the ‘November criminals’ to justify his invasion of Poland: ‘November 1918 will never be repeated in German history.’

In the Soviet Union, ‘Fascism’ becomes a non-word.1940–1945: Mises flees (neutral) Switzerland to (neutral) ‘Fascist’

Portugal and appears content to stay. But his wife insists they depart for (neutral) America. The ‘ratline’ to Chile, Brazil, Argentina, Uruguay and Bolivia and the Middle East (plus a few other havens) establishes a post-war ‘monastery route’ escape for other ‘Fascists.’

Hayek insists it is ‘important to know the sources of Nazi strength.’ In The Road to Serfdom, Hayek propagates a stab-in-the-back myth to shift responsibility for Nazism (which his family supports) onto demo-crats: ‘TO THE SOCIALISTS OF ALL PARTIES.’

At the 1943 Teheran conference, Stalin proposes that 50,000 German officers be shot.

At the 1945 Yalta conference—150 years after the Third Partition of Poland—the country for which Britain and France went to war becomes part of the post-Romanov Empire.

As the Third Reich collapses, German radio proclaims: ‘Hate is our prayer. Revenge is our battle cry.’

7 Power, Terror and Rights: An Overview Chronology 331

4 Cold War ‘Peace’: From Victory in Europe to Defeat in Vietnam

1945: the meeting of Russian and American soldiers at the Elbe River symbolises the (temporary) eclipse of Europe: inflicted, as an unin-tended consequence, by the ‘Fascists’ that Mises insisted had ‘saved European civilisation.’

Hayek proposes that ‘thousands, probably tens of thousands’ should be shot in ‘cold blood.’

The United Nations is established promote international justice as an alternative to social Darwinism.

Hayek’s Road to Serfdom is used by Winston Churchill as Conservative Party election propaganda—and is attacked by Herman Finer, Maynard Krueger and Clement Attlee.

1946–1947: Heinrich von Hayek, who had spent the Third Reich injecting chemicals into freshly executed victims, is prosecuted under denazification laws.

1947: in Asia, decolonisation begins.Hayek establishes the Mont Pelerin Society, and when his brother,

Heinrich, is barred from academic employment, compares the Holocaust to playing the fiddle in the Viennese Symphony Orchestra.

1948: Apartheid is imposed upon South Africa.Eighty-eight years after the Democratic Party split over ‘state’s

rights’ and slavery, the Dixiecrats split from the Democrats after Hubert Humphrey insists that ‘The time has arrived in America for the Democratic Party to get out of the shadow of states’ rights and to walk forthrightly into the bright sunshine of human rights.’ Murray Rothbard embraces the white supremacist Dixiecrats.

The Berlin Blockade (24 June 1948–12 May 1949).1949: Hayek refers to Austrian disciples as ‘inferior … mediocrities’

who had to be recruited and inspired through ‘visions’ of ‘Utopian’ ‘liberty.’

1950: in Korea, the Cold War turns hot.In Europe, the Schuman Plan seeks to ‘make war not only unthinka-

ble but materially impossible.’

332 R. Leeson

1953: Senator Joe McCarthy dispatched his aides, Roy Cohn and David Schine, to search US Information Service Libraries in Europe and Asia for ‘subversive’ books. A few suspect books are burnt and McCarthy-inspired censorship is compared with Hitler’s bonfires of 1933.

20 January: President Dwight Eisenhower, Vice-President Richard Nixon and Secretary of State John Foster Dulles take office.

26 February: Allen Dulles became the fifth CIA Director (1953–1961).

5 March: Stalin dies.16 June: the Red Terror crushing of the Berlin uprising undermines

the legitimacy of communism.19 August: Mohammad Mosaddegh, the democratically elected

Prime Minister of Iran, is overthrown in a coup orchestrated by the CIA and ‘intelligence’ leaving a lasting legacy of anti-Western sentiment in the Middle East. The Shah establishes a modernizing White Terror Police State.

8 May 1954: the French are defeated in the First Indo-China War.17 May: the Brown versus Board of Education Supreme Court

school desegregation decision leads to a revival of the (‘Third’) Ku Klux Klan.

18 June–7 July: a CIA armed, funded, and trained a force invade Guatemala. The democratically elected president is forced to resign, fuelling anti-US sentiment in Latin America. An Argentinian doctor, Che Guevara, is reportedly radicalised by the coup.

15 August: Alfredo Stroessner seizes power and rules Paraguay until 1989 through a regime of torture, a personality cult plus the mainte-nance of a constant ‘state of siege.’

1956: the Red Terror crushing of the Hungarian uprising further weakens the legitimacy of communism.

The British-French-Israeli invasion of Suez intensifies anti-Western sentiment in the Middle East: Nasser recruits the Nazi propagan-dist, Johann von Leers, as propaganda adviser on Jewish affairs in the Information Department of the Egyptian Ministry of Guidance and head of the Institute for the Study of Zionism to manage anti-Israeli propaganda.

7 Power, Terror and Rights: An Overview Chronology 333

1957: Ayn Rand’s Atlas Shrugged is published.The Institute of Economic Affairs begin ‘body of Hayek’ lunches for

politicians, academics and journalists.‘Papa Doc’ Duvalier wins a possibly rigged presidential election in

Haiti and rules through a purged military, a personality cult and a rural militia (Tonton Macoute ).

1958: the ‘Liberty Lobby’ is established to oppose the ‘mongrali-zation’ of the white race. Mises and the far-right John Birch Society embrace each other.

Mises tells Ayn Rand that she had the ‘courage to tell the masses what no politician told them: you are inferior and all the improvements in your conditions which you simply take for granted you owe to the effort of men who are better than you.’ This was the ‘truth that had to be said in this age of the Welfare State.’

1959: in Cuba, Colonel Fulgencio Batista is overthrown and seeks refuge in Salazar’s Portugal.

1960: beginning of the Guatemalan Civil War.In The Constitution of Liberty Hayek asserted that: ‘To do the bid-

ding of others is for the employed the condition of achieving his purpose.’

1961: In What Is to Be Done? Rothbard embraces Lenin’s strategy, seeks to mobilise White Guard fanatics and proposes a strategy for the Sovietization of American universities.

1961: the anti-decolonisation Conservative Party Monday Club is established.

1962: Mises declares: ‘The fact that the majority of our contemporar-ies, the masses of semi-barbarians led by self-styled intellectuals, entirely ignore everything that economics has brought forward, is the main political problem of our age.’

17 January: Eisenhower leaves office warning about the ‘military industrial complex.’

17 April: the failure of the CIA-sponsored paramilitary group’s attempt to invade Cuba leads to Allen Dulles’ resignation.

13 August: the erection of the Berlin Wall begins.8 September: João Goulart is elected President of Brazil on a plat-

form similar to Salvatore Allende’s (increased spending on education to

334 R. Leeson

combat illiteracy, expanding the franchise, restricting the ability of mul-tinational companies to transfer profits abroad and land reform).

1962–1963: the French are defeated after the eight-year-long Algerian War of Independence; and Pierre Vidal-Naquet reflects on Torture: Cancer of Democracy, France and Algeria 1954–1962.

Hayek sends Salazar a copy of his Constitution of Liberty, hoping that his book—this ‘preliminary sketch of new constitutional prin-ciples’—‘may assist’ Salazar in his ‘endeavour to design a constitution which is proof against the abuses of democracy.’

1963: in Human Action, Mises lobbies for the Warfare State.In Honduras, the military seize power again (ten days before a sched-

uled election).1964: after a subsidiary of International Telephone and Telegraph is

nationalised by the Brazilian government, the CIA and ITT orchestrate a coup and replace a democratically elected government with a military dictatorship.

1964–1970: the ‘Revolution in Liberty’ pursued by President Eduardo Frei’s Christian Democratic administration threatens the ‘property’ and ‘liberty’ of high ascribed status Chileans.

1965: Mao Zedong avoids falling from power by mobilising teenage Red Guard fanatics.

General Suharto seized power in Indonesia leading to the imprison-ment of about 2 million ‘impurities’ (communists and leftists). In the ‘cleansing’ process that followed, more than 500,000 ‘impurities’ are liquidated.

The political editors of the Chilean daily newspapers choose Allende as the best parliamentarian.

The ‘Fascist’ post-war ‘Strategy of Tension’ is launched by the Alberto Pollio Institute at the Parco dei Principi hotel.

1966: as the Vietnam War accelerates, Mises again lobbies for the Warfare State and Hayek updates Metternich’s ‘Peace, Justice and Love’ to ‘PEACE, JUSTICE AND LIBERTY.’

Allende’s parliamentary colleagues elect him the 56th President of the Chilean Senate.

1967: the coup specialist, Brian Crozier, denies that ‘Fascists’ were responsible for the bombing of Guernica.

7 Power, Terror and Rights: An Overview Chronology 335

Hayek praises Suharto and his Generals.7 February 1968: referring to a decision to bomb Bến Tre regard-

less of civilian casualties, a US Major explains: ‘It became necessary to destroy the town to save it.’

16 March: in a White Terror atrocity, US troops murder hundreds of unarmed Vietnamese civilians (the Mỹ Lai Massacre).

4 April: Martin Luther King is assassinated.20 April: Mont Pelerin Society member, Enoch Powell, makes his

notorious ‘Rivers of blood’ speech about non-white immigration and is sacked by Edward Heath from the Conservative Shadow Cabinet.

6 June: Robert Kennedy is assassinated.20–21 August: Warsaw Pact troops invade Czechoslovakia (the

Brezhnev Doctrine).5 November: Nixon is elected promising ‘peace with honor’ in

Vietnam. The evidence suggests that he committed treason by actively sabotaged pre-election peace efforts (leading to an additional 20,000 US and 1 million Asian lives being lost). Promotes the Nixon Doctrine.

10 March 1970: Augusto Pinochet is appointed General-in-Command of the Santiago Garrison: the start of ‘a new stage in my pro-fessional life which I have called “Political-Military”.’

4 May: at Kent State University, the Ohio National Guard open fire on an anti-Vietnam War demonstration, killing four students.

4 September: two-thirds of the Chilean electorate vote for land reform, increased spending on education etc.: Allende (36.61%) and the Christian Democrats’ Radomiro Tomic (28.11%).

22–25 October: the constitutionalist Commander-in-Chief of the Chilean Armed Forces, General Rene Schneider, is assassinated as a result of a botched kidnap attempt initially orchestrated by the CIA.

26 October: the National Congress overwhelmingly confirms Allende as President. The outgoing President Frei appoints the constitutionalist General Carlos Prats as Schneider’s replacement.

5 November: in his Inaugural Address, Allende threatened monopo-lies, ‘foreign’ owners of industry and ‘the large estates which condemn thousands of peasants to serfdom’; and promised a literacy program especially for the benefit of ‘the children of workers and peasants.’

336 R. Leeson

2 December: Nixon signed an executive order establishing the Environmental Protection Agency (EPA) and appoints William Ruckelshaus its first Administrator.

7 December: in Italy, a ‘Fascist’ coup, led by Prince Junio Valerio Scipione Borghese, is called off after it is discovered by the press.

1971: a Misean establishes ‘the Francisco Marroquín University in Guatemala to teach Austrian economics to bigger and bigger classes. [Manuel] Ayau will make it difficult for Nicaraguan Sandinistas and Castroites to take over in his country.’

Hugo Banzer Suárez becomes military dictator of Bolivia.In the middle of his second ‘Great Depression,’ Hayek creates a ‘piti-

ful’ impression.2 January 1972: Nixon tells CBS News that bombing Southeast Asia

has been ‘very, very effective.’3 January: Nixon tells Henry Kissinger that bombing South East Asia

has achieved ‘zilch’: a ‘failure.’30 January: British paratroopers shoot 26 unarmed civilians during

a protest march against internment (Bloody Sunday). Most of the press uncritically report the official story.

15 February: the military seize power in Ecuador.8 May: Nixon announces Operation Pocket Money—laying mines in

North Vietnam’s harbour—later telling Kissinger: ‘8 May was the acid test. And how it’s prepared us for all these things. The election for exam-ple.’ Kissinger replies: ‘I think you won the election on May 8.’

17 June: five men are arrested while attempting to plant electronic surveillance devises in the Democratic National Committee headquar-ters, in the Watergate office building in Washington.

19 June: the Washington Post reveals that one of the five arrested men was a security contractor with Nixon’s Committee to re-elect the President.

20 June: Nixon meets with his Chief of Staff, Bob Haldeman: 18½ minutes of the tape is later erased.

23 June: after the international press reports the ‘early success’ of Allende’s ‘socialist experiment,’ Pinochet begins ‘very discretely’ to pre-pare for a coup.

7 Power, Terror and Rights: An Overview Chronology 337

4 December: military coup in Honduras.4 March 1973: Allende’s Unidad Popular win 11 out of 25 seats in the

Senate election (42.75% of the popular vote) and win two additional seats in the Chamber of Deputies (44.23% of the popular vote). CIA Station Chief Ray Warren instructed that an ‘atmosphere of political unrest and controlled crisis’ should be created to ‘stimulate military intervention.’

28 May: Pinochet, as Allende’s Acting Commander-in-Chief, signs the instructions for his coup.

27 June: in Uruguay, Juan Bordaberry seizes power (beginning of a civil-military dictatorship).

29 June: in Chile, Prats and the military defeat a neo-Fascist Fatherland and Liberty coup.

23 August: Prats succumbs to pressure from the CIA and Fatherland and Liberty and resigns. Allende appoints Pinochet to succeed him.

11 September: Pinochet ends the Chilean Republic and establishes a version of Clerical fascism. Allende has no anti-coup planning and (apparently) commits suicide.

13 September: the Hayekian-Francoist, Jaime Guzmán, is appointed by Pinochet’s Junta to lead a group to prepare for a new constitution.

20 October: Attorney General Elliot Richardson and his Deputy, Ruckelshaus, refuse Nixon’s order to fire independent Watergate spe-cial prosecutor Archibald Cox. The Hayekian Solicitor General Robert Bork does Nixon’s ‘bidding’ in return for the (corrupt?) offer of the next vacant seat on the Supreme Court.

22 December: Nixon appears to sound-out his Joints Chief of Staff about whether they would support a coup to keep him in power: ‘This is our last and best hope. The last chance to resist the fascists [of the left].’ Defence Secretary James Schlesinger begins ‘to investigate what forces could be assembled at his order as a counterweight to the Marines, if Nixon—in a crisis—chose to subvert the Constitution.’

Robert Moss’ Chile’s Marxist Experiment is published.Hayek alters the post-coup version of Law, Legislation and Liberty

Volume 1 Rules and Order by deleting ‘There may exist today well- meaning dictators brought to power by a breakdown of democracy and genuinely anxious to restore it if they merely know how to guard it against the forces which have destroyed it.’

338 R. Leeson

5 New-Feudalism and the ‘One God’ of the Bailed-Out Market

1974 January: the Shah of Iran provides Crozier with £1 million.28 February: Edward Heath fails to win his ‘Who Governs Britain?’

election.25 April: the Carnation Revolution overthrows Portuguese

Fascism, leading to decolonization and increased apprehension for the International Right.

June: the first Koch-funded Austrian Revivalist meeting (South Royalton)—which Hayek lies to avoid attending.

27 June: Pinochet becomes Supreme Leader.Summer: Hayek tells an interviewer: ‘It may be said that effective

and rational economic policies can be implemented only by a superior leader of the philosopher-statesman type under powerful autocracy. And I do not mean a communist-dictatorship but rather a powerful regime following democratic principles.’

Summer: in another interview, Hayek predicts ‘that inflation will drive all the Western countries into a planned economy via price con-trols … and that of course is the end of the market system and the end of the free political order. So I think it will be via the attempt to regress the effects of a continued inflation that the free market and free insti-tutions will disappear. It may still take ten years, but it doesn’t matter much for me because in ten years I hope I shall be dead.’

8 August: Having proposed the establishment of ‘The Hayek Centre’ (later, the Centre for Policy Studies), Sir Keith Joseph tells Ralph Harris of the Institute of Economic Affairs: ‘I am steeping myself in Hayek – and am ashamed not to have read the great Constitution of Liberty long ago.’

9 August: Nixon resigns to avoid impeachment.30 September: Prats is murdered (along with his wife) by a car bomb

in Argentina.9 October: it is announced that Hayek will be awarded the Nobel

Prize for an apparently fraudulent job interview assertion about hav-ing predicted the Great Depression and for his superior understanding about knowledge.

7 Power, Terror and Rights: An Overview Chronology 339

28 October: Joseph tells Hayek: ‘I am most grateful for your blessing on what I said at Preston.’ (The speech contributes to Joseph’s demise as a potential Tory Prime Minister.)

December: Jude Wanniski (WSJ Associate Editor), Donald Rumsfeld (Chief of Staff to President Gerald Ford), Dick Cheney (Rumsfeld’s deputy) and Arthur Laffer (‘then professor at the University of Chicago’) derive ‘The Laffer Curve’ which—according to Paul Craig Roberts ‘maintains that tax cuts pay for themselves by stimulating the economy so strongly that revenues pour into the treasury purports to show that cutting taxes will increase tax revenue.’

A federal audit find that Koch Industries had broken federal oil price controls.

The Charles Koch Foundation is established by Koch, Ed Crane and Rothbard (in July 1976, its name is changed to the Cato Institute).

1975: a Koch subsidiary is cited for overcharging their propane gas customers by $10 million.

In Cambodia and Laos, Pol Pot and the Khmer Rouge (1975–1979) and the Lao People’s Revolutionary Party (1975–) seize power (after Nixon’s carpet bombing had effectively destroyed the social fabric of those countries).

11 February: Margaret Thatcher defeats Heath to become Conservative Party leader. Referring to Hayek’s Constitution of Liberty, Thatcher tells the Conservative Research Centre: ‘This is what we believe.’

5 March: Hayek tells the Liberty Fund that he does not want non-whites to touch his money—he wishes to find an alternative to his ‘gone negro’ Chicago bank.

29 April: the last Americans flee Saigon by helicopter, abandoning many of their supporters to their fate (re-education camps).

7 May: Hayek addresses the Libertarian Party.8 May: Rothbard addresses the Libertarian Party and Hayek is the

‘respondent.’20 May: Hayek takes the ‘free’ market exit after a hit-and-run acci-

dent on the Stanford University campus and when apprehended, per-jured himself.

June: the second Koch-funded Austrian Revivalist meeting.

340 R. Leeson

August: Rothbard (successfully) proposes that the Libertarian Party (‘The Party of Principle’) add to their 1976 Platform: ‘We oppose all attempts to compel “national self-sufficiency” in oil or any other energy source, including any attempt to raise oil tariffs, revive oil import quo-tas, or place a floor under world oil prices. We favor the creation of a free market in oil by repeal of all state pro-ration laws, which impose compulsory quotas reducing the production of oil. We call upon the government to turn over the public domain of land resources to pri-vate ownership, including the opening up of coal fields, the naval oil resources, offshore oil drilling, shale oil deposits, and geothermal sources.’ The Platform also adds: ‘We therefore support the abolition of the Environmental Protection Agency.’4

29 September: Kissinger tells the Chilean Foreign Minister, Patricio Carvajal (who had coordinated the assault on La Moneda Presidential Palace): ‘Well, I read the briefing paper for this meeting and it was nothing but human rights. The State Department is made up of people who have a vocation for the ministry. Because there were not enough churches for them, they went into the Department of State.’

6 October: Bernardo Leighton (an exiled Chilean Christian Democrat, who together with Frei had unsuccessfully sought the release of some of Allende’s ministers) and his wife survive a Pinochet-directed assassination attempt and are severely injured by gunshots in Rome.

20 November: Franco’s death further intensifies the apprehensions of the International Right.

25 November: Operation Condor (an intelligence-sharing arrange-ment among South American military dictatorships) is established. Its members include military dictatorships in Paraguay (1954–1989), Brazil (1964–1985), Bolivia (1971–1997), Uruguay (1973–1985), Chile (1973–1990) and Argentina (1976–1983); Colombia, Peru and Venezuela become associate members. An estimated 50,000 are sub-sequently murdered, 30,000 disappear (and presumed dead), and 400,000 are incarcerated.

17 December: the ‘new’ post-Mises Austrian Economics Seminar begins at New York University.

4Evers Archives. Box 2 LP Platforms.

7 Power, Terror and Rights: An Overview Chronology 341

1976: Hayek’s Law, Legislation and Liberty Volume 2 the Mirage of Social Justice is published.

16 March: Harold Wilson resigns as Labour Party Prime Minister, telling a journalist that he feared a military coup.

24 March: in Argentina, General Jorge Rafael Videla seizes power in a coup. The ‘Dirty War’ results in 22,000 killed or disappeared.

25 March: in Free Nation, the journal of the National Association for Freedom, Moss and Crozier argue that Queen Elizabeth II should refuse to see Michael Foot and therefore prevent him becoming Prime Minister if he is elected leader of the Parliamentary Labour Party.

10 May: Jeremy Thorpe is obliged to resign as leader of the Liberal Party (within fifteen months, all three major British political parties have changed leaders).

8 June: Operation Condor meets in Santiago as Kissinger explains to Pinochet that the prestige of the US State Department was available for him to exploit, adding: ‘if you could give us advanced information of your human rights efforts, we could use this … we want to remove the weapons in the arms of our enemies.’ Pinochet complains: ‘Letelier has access to Congress … We are worried about our image.’

21 September: on Embassy Row, Washington D.C., Pinochet has the economist and former diplomat, Orlando Letelier and an American citi-zen, Ronni Moffitt, assassinated by car bomb.

September: the third Koch-funded Austrian Revivalist meeting held in Windsor Castle.

28 September: Prime Minister Callaghan announced the end of the post-war Keynesian consensus to the Labour Party conference and Sir Keith Joseph formally proposes that Hayek be made a Lord.

2 November: the Koch-funded Libertarian Party obtains 0.2% of the popular vote in the US Presidential election.

6 December: deposed Brazilian President Goulart is assassinated, pre-sumably by Operation Condor operatives.

1977: Hayek praises the MPS ‘consistent doctrine’ and ‘international circles of communication.’ Ayau arranges for Hayek to visit Chile where he embraces Pinochet and describes him and his White Terror accom-plices as ‘honourable.’ Austrians later cannot remember—or refuse to

342 R. Leeson

reveal—the contents of the Hayek-Pinochet interview. Hayek plans to visit two other Operation Condor countries (‘Dirty War’ Argentina and Brazil) plus Nicaragua (then owned by the Somoza dynasty, 1936–1979); adds post-‘Fascist’ Spain and Portugal to his itinerary; and dis-misses Amnesty International’s documentary evidence about human rights abuses as the outpourings of a ‘bunch of leftists.’ Under Guzmán’s influence, Pinochet calls for an ‘autocratic and protected democracy.’

1978: Hayek visits South Africa (a ‘trial run’ for a full Mont Pelerin Society meeting) where Prime Minister Vorster had previously been detained as a Nazi activist. Hayek defends the ‘civilisation’ of apart-heid from the ‘fashion’ of American ‘human rights.’ In promoting ‘Ludendorff and Hitler’ and other ‘Fascists,’ Mises in 1927 had implau-sibly declared that ‘The only consideration that can be decisive is one that bases itself on the fundamental argument in favor of democracy.’ Hayek clarified: ‘I believe in democracy as a system of peaceful change of government; but that’s all its whole advantage is, no other.’ He also predicts the advent of ‘totalitarian democracy’—an ‘elective dictatorship with practically unlimited powers. Then it will depend, from country to country, whether they are lucky or unlucky in the kind of person who gets in power. After all, there have been good dictators in the past; it’s very unlikely that it will ever arise. But there may be one or two experi-ments where a dictator restores freedom, individual freedom.’

Thatcher declares she ‘very much’ wants to ‘bring back’ National Front voters ‘behind the Tory party’ and had ‘less objection to refugees such as Rhodesians, Poles and Hungarians, since they could more easily be assimilated into British society.’

1979: Hayek’s Law, Legislation and Liberty Volume 3 the Political Order of a Free People is published.

In Chile, inspired by Hayek’s Constitution of Liberty and Law, Legislation and Liberty, the co-hosts of Hayek’s 1977 visit, Pedro Ibáñez and Carlos Cáceres, propose a constitution which former Chilean President Gabriel Videla describes as ‘totalitarian and fascist.’

16 January: 2500 years of Iranian monarchy comes to an end: the ‘King of Kings and Light of the Aryans’ leaves the Peacock Throne for exile.

1 April: Iranians vote to become an Islamic Republic.

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4 May: Thatcher becomes Prime Minister. Hayek sends her a tele-gram stating that her election victory was the ‘best’ possible birthday present he could have had.

August: Rothbard proposes that the Libertarian Party add to their 1980 Platform: ‘We further oppose efforts to control broadcast content by banning advertising for cigarettes or sugar-coated breakfast food.’

4 November: hostages are seized at the American Embassy in Iran (‘Mosaddegh’s Revenge’).

3 December: twenty-six years after the CIA-backed coup which over-threw their democratically elected government, Islamic revolutionaries take control in Iran. Khomeini becomes Supreme Leader—Western ‘intelligence’ revives the Divine Right of Ayatollahs.

25 February 1980: a military coup overthrows the government of Suriname and initiates a military dictatorship (1980–1991).

25 March: Hayek delivers ‘The Muddle of the Middle’ to the Conservative Party Monday Club Annual General Meeting.

June: the WSJ reports that Koch Industries had been subpoenaed as part of a federal criminal investigation into fraudulently obtained oil and gas leases.

June: Hayek drafts an election campaign press conference for Ronald Reagan.

4 November: the Koch-funded Libertarian party obtain 921,128 votes (1.1%) in the US Presidential election.

The Hayekian Crozier drafts Pinochet’s ‘Constitution of Liberty.’1981: as Reagan takes office, the American Embassy hostages are released.

There is a suspicion that the Iranians had been encouraged by William Casey (Reagan’s campaign manager and co-founder of the Manhattan Institute) not to release the hostages during the election campaign.

Hayek successfully insists that the ‘wet’ Conservative Party leader, James Prior, must be removed from office.

The Mont Pelerin Society meets in Chile. Hayek found what he wanted by strolling around Pinochet’s military dictatorship to see whether ‘people’ were ‘cheerful and content.’ He told Cubitt (2006, 19) that the ‘sight of many sturdy and healthy children that had convinced him.’ He was ‘so certain of the value of his findings’ that he writes to Thatcher to protest about a cartoon ‘lampooning Chile and Poland.’

344 R. Leeson

Rothbard is expelled from Charles Koch’s ‘the Garden of Wichita’ and uses the Journal of Libertarian Studies (which he edits) to ramp up his use of Mises as a fund-raising icon: Mises was a ‘proclaimed pacifist’ who ‘trenchantly attacked war and national chauvinism’ and who issued a ‘radical philippic against Western imperialism.’

1982: when Rothbard hears that he is to ‘head academic affairs’ at the newly formed tax-exempt Ludwig von Mises Institute, ‘he brightened up like a kid on Christmas morning.’

In Guatemala, Ríos Montt seizes power.Ex-President Frei, a vocal opponent Pinochet, dies during routine

surgery. Mustard gas is found in his body; six are later arrested for their roles in the alleged assassination.

The Rothbard-Rockwell-Report contributor, Michael Levin, publishes ‘The Case for Torture.’

1983: James Buchanan relocates to George Mason University (GMU).May: in the Cold War magazine, Encounter, Hayek declares: ‘In fact

it’s no longer a question of whether nuclear war can be avoided or not.’9 June: after defeating the Argentine Junta in the Falklands, Thatcher

defeats Foot and wins a second term.23 October: the Beirut Barracks Bombings kill 299 American

marines and French servicemen (US troops are withdrawn on 22 February 1984).

25 October: US marines invade Grenada, a British Commonwealth country.

16 March 1984: William Buckley, the CIA station chief in Beirut (and participant in the torture-based Operation Phoenix program in Vietnam) is kidnapped and, over a period of 15 months, tortured to death.

April: the tax-exempt donor class discovers that the tax-evading Hayek was stealing from them (by double-dipping)—but continue to fund him anyway.

October: Hayek becomes Queen Elizabeth II’s ‘Companion of Honour’—which he describes as the ‘happiest day of my life.’

Hayek plans what could have become an ‘October Surprise’ during Reagan’s re-election campaign: by planning to promote the fraud that market failure was invented by a communist spy, Pigou.

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1985: at the start of his second term, Reagan is encouraged by Crozier to update the Monroe Doctrine: ‘the Reagan Doctrine of aid to anti-Communist resistance forces.’ Reagan refers to the Nicaraguan Contras as ‘freedom fighters … You know the truth about them, you know who they’re fighting and why. They are the moral equal of our Founding Fathers and the brave men and women of the French Resistance. We cannot turn away from them. For the struggle here is not right versus left, but right versus wrong.’

French government agents bomb the Greenpeace ship, the Rainbow Warrior, in Auckland Harbour, killing a photographer, Fernando Pereira.

1986: Kurt Waldheim, a suspected Nazi war criminal, becomes President of Austrian.

1987: Reagan is forced to admit that his government illegally traded arms for hostages.

1988: Pinochet loses the referendum on a continuation of his dicta-torship—but warns that Chileans ‘shouldn’t forget something: the army will always protect my back … The day they touch one of my men, the rule of law will be over.’

Three years after the end of the Brazilian military dictatorship, the environmentalist and rubber tapper trade union leader, Chico Mendez, is assassinated by a neo-feudal rancher.

15 February 1989: Holy Terrorists force the last Soviet troops out of Afghanistan. Like the 1917 German ‘sealed train,’ the ‘intelligence’ community regards this as a victory (Al-Qaeda had been funded by the CIA and the Saudi Wahabis).

4 June: the Tiananmen Square Massacre.19 August: Communist Hungary effectively disables its border with

neutral Austria.9 November: the Berlin Wall is breached.25 July 1990: after being covertly supported by the Americans during

the Iran-Iraq War, Saddam Hussein is informed by the US Ambassador: ‘we have no opinion on the Arab-Arab conflicts, like your border disa-greement with Kuwait.’

2 August: Iraq invades Kuwait.

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15 October: President Bush announces: ‘We’re dealing with Hitler revisited.’

17 January–28 February 1991: 34 nations led by the USA remove Iraqi troops from Kuwait (Operation Desert Storm). But the presence in the Gulf of 650,000 (primarily) American, British and Canadian troops inflames anti-Western sentiment in Islamic countries.

August: a military coup against Mikhail Gorbachev fails. The ‘free’ market ‘privatisation’ that follows the collapse of Communism later facilitates the rise of ‘Emperor’ Vladimir Putin’s ‘Russia of the Oligarchs.’

18 November: Bush awards Hayek the 1991 Presidential Medal of Freedom.

1992: Rothbard denigrates the United Nations Framework Convention on Climate Change as a ‘few left-wing hysterics’—‘most real scientists have a very different view of such environmental questions.’

1993: Rothbard defends the first bombing of the World Trade Center and acts as a tax-exempt ‘spotter’ for Al-Qaeda by suggesting other New York buildings to bomb.

1994: Hayek—who is revealed to have frequently resorted to argu-mentative ad hominem—is publically revealed to have asserted that externality taxes had been invented by a Soviet agent, Pigou. When the Clinton administration seeks to stop the use of the atmosphere as a ‘open sewer’ by levying an externality tax on the heat content of fuels (the BTU tax), the Koch operative, Richard Fink, confessed to The Wichita Eagle: ‘Our belief is that the tax, over time, may have destroyed our business.’

Rothbard defends the Ku Klux Klan assassin of a voter registration activist (who was convicted because he was politically ‘incorrect’), Silvio Berlusconi (a ‘dedicated free-marketeer’), Mussolini (because he had a reluctant ‘anti-Jewish policy’), Islamo-Fascists and those described as ‘neo-fascists.’ In ‘A New Strategy for Liberty,’ Rothbard believes that he had solved the ‘coordination problem’ between Austrian economists and ‘Redneck’ militia groups through an ‘Outreach’ program: ‘After the movement finds itself and discovers its dimensions, there will be other tasks: to help the movement find more coherence, and fulfil its mag-nificent potential for overthrowing the malignant elites that rule over

7 Power, Terror and Rights: An Overview Chronology 347

us’: ‘the least’ Austrians could do ‘is accelerate the Climate of Hate in America, and hope for the best.’

1995: inspired by Rothbard-style rhetoric, Timothy McVeigh bombs the Alfred P. Murrah Federal Building, Oklahoma City (killing 168 and injuring over 600).

Murdoch newspapers are forced to pay damages after running an arti-cle: ‘KGB: Michael Foot was our agent.’

1996: after 36 years and 200,000 deaths, the Guatemalan Civil War ends.

1997: the Nobel Prize in Economic Sciences is awarded to Myron Scholes and Robert Merton for having discovered a ‘new method to determine the value of derivatives.’

1998: the internal documents released under the Master Settlement Agreement (between 46 attorneys general and the major US tobacco companies) reveals that numerous ‘free’ market economists are on the payroll of the tobacco lobby.5

Pinochet is indicted for human rights abuses (including murder, tor-ture and hostage-taking) and detained in Britain. President Bush states that the case against Pinochet was a ‘travesty of justice’ and he ‘should be returned to Chile as soon as possible.’ Thatcher expresses ‘outrage at the callous and unjust treatment of Senator Pinochet’: ‘We must pay heed to the implications of an international lynch law, which under the guise of defending human rights now threatens to subvert British justice and the rights of sovereign nations.’

Scholes and Merton’s Long-Term Capital Management receives a $3.6 billion bailout.

The Clinton Administration repeals the 1933 Glass Steagal Act.2000: in addition to promoting terrorism and the ‘Islamic bomb,’

Colonel Gaddafi, ‘The King of Africa,’ apparently provides funds to the Austrian School of Economics.

2001: the second bombing of the World Trade Centre (coinciden-tally, on the anniversary of the 1924 and 1973 Chilean coups).

2002: Rumsfeld’s ‘action memo’ approves the use of ‘stress positions’ including ‘inducing stress by use of detainee’s fears (e.g. dogs).’

5https://www.industrydocumentslibrary.ucsf.edu/tobacco/about/history/.

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2003: based on false intelligence about ‘weapons of mass destruction,’ Rumsfeld and Cheney lead an invasion of Iraq: which threatens to cre-ate, in effect, an Iranian colony (after Civil War and a vacuum that is exploited by the Islamic State of Iraq and the Levant).

Cheney insists that the invasion—like Laffer curve tax cuts—will be (almost) self-funding.

Press reports about torture at Abu Ghraib and other American pris-ons in Iraq fuels worldwide anti-American sentiment.

2004: an Executive Order sanctions the use of ‘enhanced interroga-tion tactics’ by US military personnel.

L. Paul Bremer III, the post-invasion Administrator of Iraq announces: ‘I leave Iraq gladdened by what has been accomplished and confident that your future is full of hope.’ Because the security situa-tion is so hazardous, he has to sit on the official plane ‘for about 15 minutes while the press and everybody went away. And then we went off, out over the cargo that was in the C-130, in the back, and flew on a helicopter to another part of the airport. And instead of going out on a C-130, we went out on a government plane, a smaller government plane to Jordan, safely.’

Caldwell’s Hayek’s Challenge (published through funding provided by what is regarded as a climate change denial organization) establishes the ‘nature’ of Hayek: ‘Hayek made a point of keeping his disagreements with others on a professional level.’

2005: the Liechtenstein tax haven (which had until recently been on a list of State-sponsors of terror) begins to openly fund the Austrian School of Economics.

2006: The Times quotes Merlin Charles Sainthill Hanbury-Tracy, 7th Baron Sudeley, Vice Chancellor of the International Monarchist League, as stating, in a report of the Conservative Monday Club’s Annual General Meeting, that ‘Hitler did well to get everyone back to work.’

2007: Britain suffers the first run on a commercial bank since 1866.2008: the US Emergency Economic Stabilisation Act provides $700

billion in funding for the Troubled Assets Relief Program.2009: President Barack Obama declines to release pictures of US

troops inflicting ‘torture, abuse, rape and every indecency’ because it would ‘inflame anti-American public opinion.’

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The only person convicted of the Mỹ Lai massacre makes his first public apology: ‘I was a 2nd Lieutenant getting orders from my com-mander and I followed them—foolishly, I guess.’

2010: in ‘Citizens United v. Federal Election Commission,’ the US Supreme Court finds in favour of unlimited election spending by indi-viduals and corporations.

2011: Hamowy’s The Constitution of Liberty: The Definitive Edition is published by Caldwell without any reference to Hayek’s original intent: to market his neo-feudal ‘spontaneous’ order to dictators such as Salazar and (later) Pinochet.

Inspired by the Austrian School of Economics and 9-11-style religi-osity, Anders Breivik bombs government buildings in Oslo and shoots dead 69 participants of a Workers’ Youth League summer camp.

2012: in Guatemala, Ríos Montt is indicted for genocide and crimes against humanity.

Presidential candidate and devout Mormon, Mitt Romney, tells an audience of donors and financial sector barons: ‘My job is not to worry about [47% of the] people. I’ll never convince them they should take personal responsibility and care for their lives.’

2014: the Rothbard-founded Review of Austrian Economics (‘Editor-in-Chief ’ Boettke) publishes—apparently un-refereed–Caldwell and Montes’ academically unpublishable ‘Friedrich Hayek and His Visits to Chile’ which establishes the ‘nature’ of Mises: he could not have been a fascist because he was Jewish. Despite having been reminded of Hayek’s repeated use of argumentative ad hominem, Caldwell and Montes reaffirm the ‘nature’ of Hayek: ‘Hayek had throughout his career been known for keeping his disagreements with opponents on a professional level.’

In the WSJ, Charles Koch states: ‘A truly free society is based on a vision of respect for people and what they value.’ To illustrate his ‘Christ-centred life,’ the Koch-funded Boettke circulates to his GMU PhD students and others an ‘underpants’ video together with a discus-sion of varieties of ‘masturbation.’

2016: in the Washington Post, Charles Koch states that ‘Democrats and Republicans have too often favored policies and regulations that pick winners and losers. This helps perpetuate a cycle of control, dependency, cronyism and poverty in the United States.’

350 R. Leeson

2017: at Donald Trump’s EPA and the Interior Department (two government agencies that are ‘vital’ to the profit levels of Koch Industries), ‘top personnel have deep ties to the Kochs.’ Scott Pruitt—a major recipient of TOFF funding and a self-described ‘leading advo-cate against the EPA’s activist agenda’—becomes the fourteenth EPA Administrator.

The Koch-funded Caldwell publically sneers at the archives (which he seeks to control and which reveals Hayek to be a fraud, a racist and a congenital liar) and instructs members of the GMU ‘Hayek-Fink-Koch’ PhD production line to ‘forget the name’ of the Archival Insights into the Evolution of Economics and its editor.

2018: the Washington Post reports that Charles Koch has been pick-ing ‘winners’ (typically from low-status universities) and that Boettke is monitored by an ‘Advisory Board’ and his ‘1%’ financial status has been derived from what appear to be ‘under the counter’ payments chan-nelled from Koch to GMU (which GMU President Cabrera was appar-ently unaware of ).

References

Other References

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Cubitt, C. (2006). A Life of August von Hayek. Bedford, UK: Authors Online.Finer, H. (1945). The Road to Reaction. Chicago: Quadrangle Books.Fisher, H. A. L. (1939). A History of Europe. London: Eyre & Spottiswoode.Hayek, F. A. (2007 [1944]). The Road to Serfdom, Texts and Documents: The

Definitive Edition: The Collected Works of F.A. Hayek (B. Caldwell, Ed.). Chicago: University of Chicago Press.

Hayek, F. A. (2011 [1960]). The Constitution of Liberty: The Definitive Edition—The Collected Works of F.A. Hayek (R. Hamowy, Ed.). Chicago: University of Chicago Press.

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Hayek, F. A. (2013). Law Legislation and Liberty a New Statement of the Liberal Principles of Justice and Political Economy. Oxford, UK: Routledge Classics.

Hildebrandt, S. (2013, July). Wolfgang Bargmann (1906–1978) and Heinrich von Hayek (1900–1969): Careers in Anatomy Continuing Through German National Socialism to Postwar Leadership. Annals of Anatomy Anatomischer Anzeiger, 195(4), 283–295. http://www.sciencedirect.com/science/article/pii/S0940960213000782.

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Keynes, J. M. (1936). General Theory of Employment, Interest and Money. New York and London: Harcourt, Brace.

Mises, L. (1985 [1927]). Liberalism in the Classical Tradition (R. Raico, Trans.). Auburn, AL: Ludwig von Mises Institute.

Polanyi, K. (1934). Othmar Spann: The Philosopher of Fascism. New Britain, 3(53), 6–7.

Polanyi, K. (1935). The Essence of Fascism. In D. Lewis, K. Polanyi, & J. Kitchen (Eds.), Christianity and the Social Revolution. London: Gollancz.