News & Analysis

Testimonials
  • AWE INSPIRING

    The Daily Bell is one of the most innovative and in-depth websites on the Internet. The breadth of the content is awe inspiring and the amount of knowledge imparted is almost impossible to quantify. For me, as a liberty minded seeker of knowledge, it is a must read.

    Jeff Berwick
    Founder of DollarVigilante.com

  • FANTASTIC SOURCE

    The Daily Bell is a fantastic source of challenging thought from a wide range of freedom loving people.

    Dr. Joel Wade
    Author, Psychotherapist and Life Coach

  • CONSISTENTLY SOLID

    The Daily Bell features consistently solid analysis of and thoughtful challenges to contemporary statism. I am proud to be on the team.

    Dr. Tibor Machan
    Author and Philosopher

  • EXCELLENT PERSPECTIVE

    The Daily Bell affords an excellent alternative perspective on some of the noise and nonsense of mainstream media. In particular, I enjoy reading Anthony Wile's 'free-market analysis' on current subjects and articles. Very insightful.

    Frank R. Suess
    Chairman & CEO of BFI Capital Group Inc.

  • AHEAD OF THE CURVE

    The Daily Bell has come out of nowhere to introduce to the Internet community some of the most intriguing and proactive interviews there are out there. Let's hear it for creativity and being ahead of the curve.

    Bill Murphy
    Chairman of Gold Anti-Trust Action Committee

  • MESSAGES OF TRUTH

    The Daily Bell website is one of the authentic voices cutting through the clouds of vapid opinion, the morass of mediocre media and the confusion of Orwellian doublespeak. The Bell website lives up to its name, ringing unheard messages of truth in our ears.

    Jeffrey Armstrong
    Award-winning Author, Vedic Philosopher

  • ESSENTIAL READING

    Liberty is under assault by Big Government. The Daily Bell is an essential tool for information for those who want to fight for freedom.

    Steve Forbes
    Chairman and Chief Executive Officer of Forbes Media

  • NEVER MISS AN ISSUE

    I love the Daily Bell. Every issue is principled and informative.

    Lew Rockwell
    Founder of the Mises Institute

  • READ IT EVERY DAY

    A defender of free markets, The Daily Bell takes a libertarian approach to expose and unravel global misinformation. Read The Daily Bell – every day!

    Charles Payne
    FOX Business Analyst

  • EXCELLENT ANALYSIS

    The Daily Bell has a great libertarian point of view, and excellent economic analysis. Add it to your daily reading.

    Peter Schiff
    Chairman and Chief Executive Officer, Euro Pacific Capital

  • GUTS, OBJECTIVITY, WISDOM

    Rarely does a publication have the guts and objectivity to tell it like it is, yet the eloquence and wisdom to listen carefully to the ‘other side.’ This is The Daily Bell accomplishing its daily mission.

    James Jaeger
    Telly Award-winning Filmmaker

  • PART OF MY DAILY NEWS DIET

    I read it every day!

    Jim Rogers
    Bestselling Author, Co-founder of the Quantum Fund

  • GREAT JOB, DAILY BELL

    I can say that, unlike the mainstream press, The Daily Bell knows the questions to ask and has the chutzpah to ask them. They realize that socialism and Keynesianism are wrecking the world and they are helping to save what is left of liberty and free markets.

    Richard J. Maybury
    Author, Editor of U.S. & World Early Warning Report

  • CUTTING EDGE ANALYSIS

    At a time when growing majorities worldwide are tuning out mainstream news, people are seeking the cutting edge, insightful and thought provoking analysis that The Daily Bell consistently provides.

    Gerald Celente
    Bestselling Author, Founder of the Trends Research Institute

  • INFORMATIVE SOURCE OF INFORMATION

    The Daily Bell is an informative source of information and commentary from leading figures in the liberty movement. It's a pleasure to be interviewed alongside far more notable individuals.

    Alexander McCobin
    Executive Director of Students for Liberty

  • THOUGHTFUL NEWS, EXCLUSIVE INTERVIEWS

    I always read the Bell. The news items are thoughtfully selected, and the interviews are unavailable elsewhere.

    Doug Casey
    Bestselling Author and Founder of Casey Research Group

  • A MUST-READ FOR EVERYONE

    The Daily Bell is a must-read for anyone who wants to understand the effects of the state on our economic future.

    Dr. Thomas DiLorenzo
    Professor of Economics, Loyola University Maryland

  • GREAT INVESTMENT INFORMATION

    I love reading The Daily Bell! Interesting investment information, a political and social viewpoint that lets me know I'm not alone in the world and "annotated" with analysis. I highly recommend it to all interested readers.

    Rick Rule
    Founder of Global Resource Investments Inc.

  • INTELLECTUAL JOLT

    Sit down to read from The Daily Bell and experience a jolt of intellectual energy.

    Dr. Nathaniel Branden
    Psychotherapist, Bestselling Author

  • A LEADING LIGHT

    The future is created by the people who build it, not the people who predict it will not exist. You can meet lots of important builders by reading The Daily Bell.

    Catherine Austin Fitts
    Former Assistant Secretary of Housing and Federal Housing Commissioner

  • POWERFUL INSIGHTS

    I consider The Daily Bell essential reading for anyone desirous of understanding the way the world really works.

    Lord William Rees-Mogg
    Author, Former Deputy Editor, Financial Times

  • INDISPENSABLE INFORMATION

    The Daily Bell is an indispensable source of news and information for those seeking to curtail the power of the welfare-warfare state.

    Dr. Grant Havers
    Chair, Department of Philosophy, Trinity Western University

  • VOICE OF REASON

    I have thoroughly enjoyed the analysis and interviews at The Daily Bell, which has so often been a voice of reason during these perilous times

    Dr. Thomas Woods Jr.
    NY Times Bestselling Author & Senior Fellow, Mises Institute

  • INDEPENDENT

    Get outside the box with The Daily Bell and experience independent views.

    Paul Craig Roberts
    Author, Former Assistant Secretary of the Treasury in the Reagan Administration

  • SIMPLY TERRIFIC

    The Daily Bell does a remarkable job of exposing how money power uses central banking to crush people into submission via global government with economic and political slavery being the desired end result.

    John Browne
    Former Secretary of the Conservative Defense and Finance Committees, UK Parliament

  • PREMIER FREE-MARKET ANALYSIS

    The Daily Bell rings out for liberty every day. It is the premier online source for insightful and hard-hitting free-market analysis and interpretation of economic, political and business events.

    Dr. Richard Ebeling
    Author, Professor of Economics at Northwood University

  • INSIGHT YOU CANNOT IGNORE

    The Daily Bell provides unique insights on contemporary political, economic and social problems that can be found in such a concentrated form nowhere else. Whether one agrees or disagrees with it, one cannot afford to ignore it.

    Dr. Edwin Vieira
    Author and Constitutional Expert

  • COURAGEOUS REPORTING

    There is no other publication in print or on the Internet like The Daily Bell. They have the courage to report the truth and analyze current foreign policy, politics and economic events in the context of a formerly hidden history of financial elites.

    Ron Holland
    Author & Monetary Analyst

  • THE DAILY BELL IS A MUST-READ

    Because the world is changing so rapidly, it is difficult to keep up, which means The Daily Bell is a must read. I consider the information critically important reading.

    Dave Morgan
    Author, Editor of Silver-Investor.com

  • REFRESHING

    I enjoy reading The Daily Bell because it often has refreshing and novel ways of looking at things.

    Bill Bonner
    Bestselling Author, Founder of Agora Publishing

  • A VIRTUAL WHO'S WHO

    The good and the bad, the big dogs and the small, the thinkers and the doers among libertarians and on the "Right" – you can encounter them all in The Daily Bell's exclusive weekly interviews. Indispensable.

    Dr. Hans Herman-Hoppe
    Author, Economist and Libertarian Philosopher

  • SOURCES YOU CAN TRUST

    The Daily Bell should be on everyone's shortlist of news sources you can trust. It's on mine, and we often refer to it in our own weekly news service at The Reality Zone.

    G. Edward Griffin
    Author, Founder of Freedom Force International

  • EXCELLENT RESEARCH

    I really enjoy reading The Daily Bell for the excellent research and content provided on a wide variety of issues vital to the Freedom Movement.

    Dr. Mark Skousen
    Author & Founder of FreedomFest

  • VERY INFORMATIVE

    I read The Daily Bell every day and I find it very informative.

    Marc Faber
    Dr. Marc Faber, Author, Publisher of The Gloom Boom & Doom Report

  • RECOMMENDED READING

    For alternative views on contemporary politics, culture and science, from a libertarian point of view, check out The Daily Bell.

    Michael A. Cremo
    Author, Vedic Archeologist

  • PROFOUND AND PROVOCATIVE

    Every day, I rely on the Daily Bell for a different perspective you'll never find in the regular media. It's an analysis and timely insight that is profound and provocative.

    Craig Huey
    Author, Small Business Owner

  • TRUTH AT WORK

    There are very few publications out there that have the smarts and guts to tell the truth about the dictatorial forces at work destroying our civilization. Thankfully The Daily Bell is one of them, and it appears in the mailbox every day.

    Nelson Hultberg
    Author, Director of Americans for a Free Republic

  • GREAT THINKERS YOU CAN'T GET ANYWHERE ELSE

    The Daily Bell has revived that great old institution of the personal interview, extracting information from today's great thinkers you can't get anywhere else. Outstanding!

    Jeffrey Tucker
    Author, Executive Editor of Laissez Faire Books

  • SEPARATES WHEAT FROM CHAFF

    The Daily Bell is a true beacon to lead in helping the reader to separate the wheat from the chaff.

    Dr. Antal Fekete
    Author, Educator and Monetary Scientist

  • OUT OF THE DARK

    The Daily Bell leads us out of the dark tunnel of manipulated press into the light of free press.

    John Perkins
    Bestselling Author

 

Subscribe now to start your FREE email subscription to:

The Daily Bell Newswire

By subscribing, I confirm that I have read the privacy policy and the terms of use policy in its entirety and I understand and accept these terms.

 

 
Bequest of Chicago Free-Market Boys is Chile Violence?

Chile court rules in favour of Patagonia HidroAysen dam ... The court, the highest in the land, rejected an appeal by environmentalist groups who fear it will damage Patagonia's fragile ecosystem. The project, which involves flooding 6,000 hectares (15,000 acres) of land, still needs government approval. It has sparked a number of protests, some of them violent. – BBC

Dominant Social Theme: This is a necessary dam.

Free-Market Analysis: Are the Chile Dam protests symptomatic of deeper dysfunction?

There are plenty of reports of protests over the dam that the Chile Supreme Court just approved (see excerpt above). These don't give the full impact of what's at stake given that there is not one dam planned but a number of them. This is a dam complex.

And it has sparked protests nationwide. The protests slowed the progress of the first project, a $5 billion coal-fired thermoelectric plant that is important to copper mining in the region.

The Brazilian billionaire Eike Batista's Castilla power project was in jeopardy because of them. Its fate was in the hands of the Chilean Supreme Court – and now the Supreme Court has decided in his favor.

There is little doubt protests will continue, and both sides have points to make. But the protests are not the issue. Chile, for all of its vaunted entrepreneurialism and capitalism, is a country in crisis.

It is in crisis due to its history and to the impact that an Anglo-American free-market philosophy has had on its culture and the political and business establishment.

Often in dysfunctional societies, it takes only one or two disconnected events to create the initial conflagration. It seems to come from nowhere but soon takes on a life of its own. It is an expression of deeper discontent.

Chile is in its own way a deeply dysfunctional society and the protests against a complex dam project that affects large swaths of Chile are expressions of this larger dissatisfaction. Society is riven and there is a perception that big money interests are in control in Chile despite the free market rhetoric.

The secret to understanding Chile is to realize the devastation left by Augusto Pinochet's dictatorship and the subsequent adoption of the "Chicago Boys" perspective – one that filled a larger culture vacuum – on how to rebuild a shattered society.

The impact of the Chicago School in Chile should not be underestimated. It's a good example of how ideology can serve political ends and have a lasting impact. Wikipedia tells us the following about the origination of the Chicago School's impact on Chile:

The Chicago Boys (c. 1970s) were a group of young Chilean economists most of whom trained at the University of Chicago under Milton Friedman and Arnold Harberger, or at its affiliate in the economics department at the Catholic University of Chile.

The training was the result of a "Chile Project" organised in the 1950s by the US State Department and funded by the Ford Foundation, which aimed at influencing Chilean economic thinking. The project was uneventful until the early 1970s. The Chicago Boys' ideas remaining on the fringes of Chilean economic and political thought, even after a 500-page plan based on the Chicago School's ideas called the Ladrillo – "The Brick" – was presented as part of Jorge Alessandri's call for alternative economic platforms for his 1970 presidential campaign.

Alessandri rejected Ladrillo, but it was revisited after the 1973 Chilean coup d'état on 11 September 1973 brought Augusto Pinochet to power, and became the basis of the new regime's economic policy. Eight of the ten principal authors of "The Brick" were Chicago Boys.

Juan Gabriel Valdés, Chile's foreign minister in the 1990s, described the Chile Project as "a striking example of an organized transfer of ideology from the United States to a country within its direct sphere of influence... the education of these Chileans derived from a specific project designed in the 1950s to influence the development of Chilean economic thinking." He emphasised that "they introduced into Chilean society ideas that were completely new, concepts entirely absent from the 'ideas market'".

Critics of free-market thinking generally point to The Chicago Freshwater School run by the famous economist Milton Friedman as evidence that free markets can be deeply damaging to society.

Some even mistakenly conflate the Chicago School with a more radical, anarchical school of thought known as Austrian economics, created by Murray Rothbard and supported by Lew Rockwell. This is somewhat naive in our view and expresses a misunderstanding of what free-market thinking really is and how it works.

Milton Friedman was far more of a pragmatist than Murray Rothbard and his mentor, Ludwig von Mises. The latter were interested in the theoretical attributes of Austrian economics. Von Mises even walked out of the Mont Pelerin Society he'd helped found, shouting "You are all socialists." Rothbard was a principled oponent of both central banking and the US military-industrial complex. He even had suspicions that  the Cold War itself was manufactured. 

Friedman was far more involved in applying his theories to American sociopolitical reality. He helped implement the modern income tax while working for the US government in the mid-20th century. His pragmatism eventually led him to make at least two major compromises with modern-era free-market principles.

The first was to grant that central banking was a necessary evil. The second was not to dispute the idea of a standing army and general military vigilance. Friedman led an admirable attack on the US draft in the 1970s but the result gave the US the all-volunteer army that has proven just as troublesome in some ways as the draft.

Not only that, but by making the draft the focus of his efforts, Friedman left in place – without much seeming demur – the US's larger military-industrial complex. In fact, Friedman supported the first Gulf War (though not apparently the second).

Friedman was a powerful man and his ideas have had consequences. The trouble with Friedman's pragmatic approach was that it tended to vitiate the application of a REAL private marketplace.

Critics of Austrian economics who are new to the field often confuse the Chicago School with Rothbard's more robust views and the Misesian school generally. Unfortunately, the former seems to encourage forms of statism (despite its free-market emphasis) while the latter explains ways to unock a more peaceful and prosperous society.

What occurs in the application of the Chicago Fresh Water School approach to markets is a kind of competition throughout the lower regions of society – visceral and even violent – while the means of money production remains in the hands of the state and the powerful families backing it.

Marry this to military vigilance, and a military-industrial complex of greater or lesser virulence is the inevitable result. One can categorize it to a greater or lesser extent as a form of fascism. The result, among others, is a simmering resentment between the middle and upper classes. Chile is likely an expression of the Chicago School's pragmatism and compromises.

In fact, it is an increasingly noxious brew. The culture having been somewhat shattered, all that is left to replace it is a virulent consumerism that apparently mimics the worst aspects of the United States' brand.

"Chile has suburbs," says one successful businessman who travels regularly to Chile, but asked not to be identified. "They remind you of American suburbs. The houses are big and the cars are big and what's important is getting ahead."

This source points out that it is the consumerism and the lack of a viable traditional culture that has caused the larger cultural dissonance. "People think mostly about getting ahead among the middle class but the upper classes will let them travel so far and no further."

This source believes that this simmering resentment will find outlets such as the dam protests that will continue to roil the larger society. Without a coherent, familial culture to fall back on, bereft of nativist roots due to the past violence and the importation of a consumer culture from the US, Chilean society may be doomed to increased turmoil.

"From a market and business standpoint, Chile most resembles America among Latin American economies," this source concludes. "But many who visit there decide it's not a very comfortable place to live. It's a country in search of a culture, of what it once had and now has lost."

Chile is often pointed to as a South American success story, a place where free-markets have successfuly created deep roots. But in many ways Chile is a lot like other Latin countries with an insular familial elite running things, a striving middle class and a deep pool of poverty. The difference between Chile and other countries is probably that its middle class is larger and its marketplace institutions somewhat stronger.

Conclusion

The larger problems remain. Emplacing a free-market, sociopolitical approach while leaving in place central banking and a standing military is an invitation, ultimately, to creating the kind of society that Chile has now and that the US has increasingly as well.

Rate this article:

Total Ratings: 0 - Average Rating: 0.0

Books by Anthony Wile
Financial
Freedom

The High Alert Way to Discover Winning and Profitable Investment Ideas

Free Download   Order Now

The Best of
Anthony Wile

Select Editorials & Exclusive Interviews As featured at TheDailyBell.com

Free Download   Order Now

High
Alert

How the Internet Reformation is causing a financial hurricane - and how to profit from it

Free Download   Order Now

The Liberation
of Flockhead

A modest, monetary fable

Free Download   Order Now

Who We Are

The Daily Bell is published by a dedicated team of experienced researchers and writers who utilize Anthony Wile’s VESTS model to analyze sociopolitical, economic and financial information from a free-market perspective, debunking mainstream media memes and providing insights and analysis derived from business cycle analysis that yield timely insights into profitable investment trends.

 
Sign Up for our FREE Newsletter

Subscribe now to start your FREE email subscription to
The Daily Bell Newswire.