"It is a strange desire to see/(power andto Cose Ci6erty." - ::Francis 'Bacon September 1988 $4.00 Volume 2, Number 1 WHY YOU PROBABLY WILL LOSE EVERYTHING IN T-HE COMING DEPRESSION Of course, you could be the excep­ lowed in ancient Rome, in Pre­ late Bernard Baruch, Davidson is through firsthand experience on the tion. Even in the Great Depression Napoleonic France, in Russia prior endowed with a Prodigious talent internationalscene. His worldwide a handful of people actually made to the Bolshevik Revolution, in for forecasting economic events. travels and contacts allow him to fortunes-the ones who heeded the Germany under Hitler's early rule, Davidson's first book, The analyze the U.S. economy from a advice of economic realists like and in the U. S. in the 1920s. Squeeze, wonpraise from Frederick truly unique perspective. Bernard Baruch, famed "Wizard of Now, bureaucrats and establish­ A. von Hayek, Nobel Prizewinner Wall Street." ment economists are again almost in Economics, as "one of the really And whatdoes that perspective Baruchtried to warn the public of frantic in their efforts to assure us significant contributions to its reveal? In Blood in the Streets, the coming economic disaster, but that there is no reason for concern. field." Davidson otTers virtually irrefu­ mostignoredhim. As a result, most History tells us this is a badsign; the table evidence that the U.S. will of the population failed to escape third step is practically upon us! Now, Davidson has written a soon enter a depression far the ravages ofthe Great Depression. In every age "experts" have in­ prophetic-and frightening-new greater than that of the 1930s­ sisted, right up to the fmal collapse, book, Bloodin the Streets, with his probably by 1990 at the latest. Throughout the centuries, a that "it could never happen today," friend and colleague Sir William If Davidson is correct, then pru­ three-step scenario has unfolded: and those who claim otherwise are Rees-Mogg, former editor of The dent, thrifty Americans who have First, the public is assured that irresponsible "Prophets of doom." Times of London. Lee Euler, pub­ prepared for the future in traditional some imminent cataclysmic event lisher ofPredictions, says ofBlood ways will be completely wiped out. "could never happen here" or The "prophets of doom," of in the Streets that "a hundred years He warns that "many people never "could never happen today." course, are usually the true proph­ from now, Davidson and Rees­ planproperly for the future, because Second, the masses regurgitate ets. Unfortunately, these are the Mogg may well be remembered as they're afraid they'll discover they these assurances, and anyone who ones mostpeople rarely hearabout. the great prophets of our time." havebuilttheirhopes and dreams on calls attention to obvious realities is Today there is a growing feeling How has Davidson earned this foundations of quicksand." simply dismissed as a "doomsayer." among those Prophets that James awesome reputation at so young an Don't make the mistake ofbeing Third, the cataclysmic event Dale Davidson is perhaps the age? It is due not only to his genius, caught unprepared because those comes to pass! brightest new economic mind to but to his unusual approach to who "oughtto know"keep insisting This scenario was clearly fol- enter their ranks in years. Like the domestic economic analysis- that "it could never happen today." A Second Chance to Heed the Warnings of Bernard Baruch Those who ignored Bernard couldhappen overnight this time. Do the following events seem Ifyou don't believe these events Baruch lived to regret it. Now Cre~it .. "impossible" to you? will occur, or don't know how to investors of the '80s can heed • ItlsnowallbutImpossibleforthe protectyourselfwhen theydo, you James Dale Davidson, who is U.S. to avoid a complete credit Then remember that Bloodin the need to read Blood in the Streets. ·dl · "th collapse. Streets was published nearly six rapi y emergIng as e new Currencies months before the Crash. You "There's a Rothschild principle Bernard Baru~h." • The advantages of holding cer- can profit from its incredible in- from which the title of this book is I~ Blood .,n the, Stree.ts, tain foreign currencies. sights ••• it's not too late to avoid: taken: 'The best time to bUy is DaVidson prOVides speCIfic ad':lce • Why you should keep substantial when blood is running in the on how t.o prepare for th.e coml.ng funds m' SWI'tzerland, Germany, • Strict controls 'thon wages,. '1 prices streets.,I·t IS a prlnclp.. Ie that IS . economl~ collapse, adVIce which Austria, other selected countries. and profiIts, WI JaI sentences true today. The greatest profits he saysWill actually produceproF- Inflatl.on for those who do not comply. 'J. R" 1 b d can always be had by bUying when its. for the prudent invest.or. In • InflatI'on I'S no longer the mam' • estnchons·.,on trave a roa. h ,.prices are most depresse d bypes- thiS ,book he makes ~r~ctIcal use danger. Your investment adviser severe 1ImItatIOns on your ng ts simism. 'Blood in the streets,' of hiS talent by examining: may be "fI'ghu'ng the last war." to take money out ofthe country. h . th· th • Massive bankruptcy of corpora- owever, IS more an Just e The World Economy at the Brink Real E~tat~ ,tions, and governments. name for an investment principle. • The declining power of the U.S. • R~nt~g IS better than ownmg. • Chaos and riots incities andsub- It is also a prediction about the will lead to financial upheaval. • Milhon dollar homes ,for urbs, plummeting real estate val- world to corne.•. • The plunging U.S. dollar exactly $50,000? Why real e~tate pnces ues, the remnants of the middle "The coming yearswill be a bad parallels the Smoot-Hawley may eventually nosedIve. class fleeing to rural areas. time to be ill-advised. A time trade bill that preceded the Crash Speculative Opportunities • Painful shortages resulting in ra- fraught with snares for anyone of '29. • Why Finland will be the Hong tioning, blackmarkets, searches, who is unprepared. We could be Stocks Kong of Russia, and which are seizures, and confiscation. on the verge offinancial upheaval • The major reasons why the stock the .tIu:ee hottest stocks in when blood will, indeed, 'run in market is still due to fall up to Helsinki for long term growth. the streets.' Many people will another thousand points! High Technology suffer staggering losses. Others, • 2 factors that could cause the • Fiber optics will doom every who take the right investment stock market to experience a coppe~mine ~ th,: United States. steps, at the right time, will earn phenomenal, temporary rise be- • Genehc.engmee!mg and com- handsome profits." fore plunging again. puter. SCIence will create super -James Dale Davidson with Gold machInes smarter than hwnans. S· W·II' RM ". If I lam ees- ogg Why gold IS your Insurance ••. and much, much more. against inflation and deflation. n ----------------------------- J'1 • Theshocks to the system that will Please send me _.copies ofBlood in the Streets by James Dale Davidson. I enclose $19.95 plus $3 postage and I increase demand for gold. I handling for each book ordered. I wish to pay as follows: _ I Banks 0 Check payable to Euler Enterprises is enclosed, (Maryland residents add 5% sales tax.) • Leaving large amounts ofmoney I 0 Charge my: 0 MasterCard 0 Visa 0 American Express I ~ a bank~ regardlt;ssofits size, is I Name I lIke playIng RUSSIan roulette. Card #L-- _ • Why the failure of even one ma- I Exp, Address I jor bank can bring the whole rot- I ten system tumbling down. I Signature City State-- ZipJJ- _ • The bankin~crisis that took ye.ars I I to develop m the last DepreSSIOn L Complete and mail to: Euler Enterprises, Inc" Suite 1200, 7910 Woodmont Avenue, Bethesda, Maryland 20814 .. ~I --------------------------------w-!2£J Contents September 1988 Volume 2, Number 1 My Dinner With Gus by William P. Moulton, page 15 The Ultimate Justification of the Private Property Ethic by Hans-Hermann Hoppe, page 20 Liberty and Ecology by John Hospers, page 23 AIDS: More Than Just a Virus by Sandy Shaw, page 33 TakiIlg Libertarianism Seriously by Murray N. Rothbard, page 34 Scrooge McDuck and His Creator by Phillip Salin, page 37 Young Money: Curse or Blessing? by Karl Hess, page 42 The Liberty Poll: More on What It Means by James Robbins, page 45 Looking a Gift Horse in the Mouth by Ann Weiss, page 47 Eyewitness a story by Erika Holzer, page 49 The One Libertarianism by Sheldon Richman, page 53 and a response by Ethan O. Waters, page 56 Departments • Reflections The Editors "Editorialize," page 7 Obituaries, page 12 Revieu's Stephen Cox on Roy Cohn, page 59 Douglas Rasmussen on Individual Rights, page 64 William P. Moulton on Alger Hiss, page 67 Booknotes, page 68 Buronic Episodes, page 32 Letters, page 4 Poetry by David Friedman, page 48 Classified Advertisements, page 70 Contributors, page 77 Terra Incognita, page 78 was democratic or legitimizing proof of the Sandinistas' popularity." Count Kel­ Letters sey as among those to whom the Times [ ] was referring. At another point in his article, Kelsey rightly stated that "it is not honest to jus­ Contra Kelsey tend Ortega's inauguration was Fidel Cas­ tify onesociety's shortcomings by com­ William Kelsey's article in the July tro. Leaders such as Venezuala's Carlos paring it to a worse oneil then, in no less Liberty, "Nicaragua: The Case for Non­ Andres Perez (who had actually support­ than one paragraph later, he dismissed Intervention," advanced a number of fac­ ed the Sandinistas against Somoza) re­ the Sandinistas' policy on political pris­ tual errors, none more egregious than the fused to lend the charade the oners with a flippant white-wash, name­ discredited claim that the 1984 national respectability of their presence.