Property Rights
Credit Creation
Essence of
Free Private
Business Cycle

Religion of


"'Don't talk about profit,' said Mencius. 'It's Humanity and Duty that matter. Emperors say How can I profit my nation? Lords say How can I profit my house? And everyone else says How can I profit myself? Then everyone high and low is scrambling for profit, pitching the nation into grave danger.'" [I.1]1a*  

"' . . To rise at the cock's cry and chase profits with untiring diligence -- that is to be a follower of Chih the bandit. . . '" [XIII.25]1b

The Nature of the Universe.

" . . . [I]n their greed of gain [men] amass a fortune out of civil bloodshed: piling wealth on wealth, they heap carnage on carnage. With heartless glee they welcome a brother's tragic death. They hate and fear the hospitable board of their own kin. Often, in the same spirit and influenced by the same fear, they are consumed with envy at the sight of another's success . . . Some sacrifice life itself for the sake of statues and a title. Often from fear of death mortals are gripped by such a hate of living . . . they do themselves to death. They forget that this very fear is the fountainhead of their troubles: this it is that harasses conscience, snaps the bonds of friendship and hurls down virtue from the heights."1a

Rights of Man.

"The obscurity in which the origin of all the present old governments is buried, implies the iniquity and disgrace with which they began. . . Those bands of robbers having parcelled out the world, and divided it into dominions, began . . . to quarrel with each other. . . What at first was plunder, assumed the softer name of revenue . . .
From such beginning of governments, what could be expected, but a continual system of war and extortion? It has established itself into a trade."1a

Dissertation on First Principles.

"When rights are secure, property is secure in consequence. But when property is made a pretence for unequal or exclusive rights, it weakens the right to hold property, and provokes indignation and tumult . . . "1 

"The first aristocrats in all countries were brigands."1c*

Capital. Volume 1.

"The restless never-ending process of profit-making alone is what [the capitalist] aims at. This boundless greed after riches, this passionate chase after exchange-value, is common to the capitalist and the miser; but while the miser is merely a capitalist gone mad, the capitalist is a rational miser."1a

"The capitalist knows that all commodities, however scurvy they may look, or however badly they may smell, are in faith and in truth money, inwardly circumcised Jews, and what is more, a wonderful means whereby out of money to make more money."1b [Karl Marx was born of a German-Jewish family converted to Christianity2a]

"The capitalist system presupposes the complete separation of the labourers from all property in the means by which they can realise their labour. . .
The so-called primitive accumulation, therefore, is nothing else than the historical process of divorcing the producer from the means of production."

Capital. Volume 3.

"Accumulation of capital in the form of the national debt . . . means nothing more than the growth of a class of state creditors with a preferential claim to certain sums from the overall proceeds of taxation."2b  

Business Cycles.

" . . . [C]apitalism is that form of private property economy in which innovations are carried out by means of borrowed money . . . "1a

"It was the financing of innovation by credit creation . . . which is at the bottom of that 'reckless banking.'"1b

The Virtue of Selfishness.

"Without property rights, no other rights are possible."1a

"Today, few people know what capitalism is . . . "1b

Technology Management and Society.

"In government, modern technology and the modern economy founded on it have outmoded the national state as a viable unit."1a

"The first great code of law, that of Hammurabi, almost four thousand years ago, would still be applicable to a good deal of legal business in today's highly developed, industrial society."1b

"To take risk is . . . the essence of economic activity."1c

"Managers today cannot take the time to understand, because they don't have it."1d

Capitalism and Freedom.

"The possibility of co-ordination through voluntary co-operation rests on the elementary - yet frequently denied - proposition that both parties to an economic transaction benefit from it, provided the transaction is bi-laterally voluntary and informed.
Exchange can therefore bring about co-ordination without coercion. A working model of a society organized through voluntary exchange is a free private enterprise exchange economy - what we have been calling competitive capitalism."1a*

Corporate Canada.

" . . . Either we shall passively suffer our situation of economic domination, and then it would be better to be annexed outright to the United States, rather than be a colony exploited without limit. Or else we shall interfere vigorously in the game of economic forces . . . "1a

A People's History of the United States.

" . . . [C]ontracts made between rich and poor, between employer and employee, landlord and tenant, creditor and debtor, generally favor the more powerful of the two parties."1a

"Capitalism has always been a failure for the lower classes. It is now beginning to fail for the middle classes."1b

The Essence of Capitalism.

" . . . [U]sing Hobbesian logic, I revealed Capitalism as a Religion of Money (banks as churches, bankers as clergy, loan applications as auricular confessions, bankruptcies as excommunications, credit bureaus as index librorum prohibitorum, etc.)."1a

The confines of Capitalism are simply too narrow, too Ptolemaic -- money cannot be the center of life. Capitalism, therefore, cannot be "the proper way to be free."1a It must be surpassed. The trinity of Capitalism -- Usurer-Entrepreneur-Technology1b -- must be transcended with the trinity of Mind, Life, and Justice.1b

Social Responsibility
The People

Mencius. "'The people are the most precious of all things. Next come the gods of soil and grain. The sovereign matters least. . . '" [XIV.14]1c     

Capital. Volume 3.

"[T]the pioneering entrepreneurs generally go bankrupt, and it is only their successors who flourish, thanks to their possession of cheaper buildings, machinery etc. Thus it is generally the most worthless and wretched kind of money-capitalists that draw the greatest profit from all new developments of the universal labour of the human spirit and their social application by combined labour."2a 

Capitalism, Socialism and Democracy.

"The perfectly bureaucratized giant industrial unit not only ousts the small or medium-sized firm and 'expropriates' its owners, but in the end it also ousts the entrepreneur . . . "2a


Technology Management and Society.

"Aware that we are living in the midst of a technological revolution, we are becoming increasingly concerned with its meaning for the individual and its impact on freedom, on society, and on our political institutions. Side by side with messianic promises of utopia to be ushered in by technology, there are the most dire warnings of man's enslavement by technology, his alienation from himself and from society, and the destruction of all human and political values."1e

Capitalism and Freedom.

"Few trends could so thoroughly undermine the very foundations of our free society as the acceptance by corporate officials of a social responsibility other than to make as much money for their stockholders as possible."1b

Corporate Canada.

"Social profitability must take precedence over economic profitability: houses, schools and hospitals must come before factories and mills . . . "1b

A People's History of the United States.

"It is roughly estimated that Africa lost 50 million human beings to death and slavery . . . at the hands of slave traders and plantation owners in Western Europe and America, the countries deemed the most advanced in the world."1c

Bank-Induced Risks.

"Today, people around the world are giving themselves up recklessly to the 'calculative thinking'2a of the marketplace. People calculate what is better -- a loan or a lease --; but, they seldom reflect on the meaning of usury. Why? Because they are too busy being indentured."2

Credit System
Concentration of
Withdrawal of Loyalty
Crossing the Law
World War
Mencius. "' . . . Unless they have a constant livelihood, the common people will never have constant minds. And without constant minds, they'll wander loose and wild. They'll stop at nothing, and soon cross the law.'" [I.7]1d  

American Crisis. "'Tis surprising to see how rapidly a panic will sometimes run through a country."1d

Capital. Volume 3. "The credit system which has its focal point in the allegedly national banks and the big money-lenders and usurers that surround them, is one enormous centralization and gives this class of parasites a fabulous power not only to decimate the industrial capitalists periodically but also to interfere in actual production in the most dangerous manner . . . "2c

Capitalism, Socialism and Democracy.

"Can capitalism survive? No. I do not think it can"2b

" . . . This process of Creative Destruction is the essential fact about capitalism."2c

" . . . [T]here is inherent in the capitalist system a tendency toward self-destruction . . . "2d

The Virtue of Selfishness.

"All credit transactions are contractual agreements. . . Only a very small part of the gigantic network of credit transactions ever ends up in court, but the entire network is made possible by the existence of the courts, and would collapse overnight without that protection."1c*


A People's History of the United States.

"Certain new facts may . . . emerge so clearly as to lead to general withdrawal of loyalty from the system. . . The elite's weapons, money, control of information would be useless in the face of a determined population."1d

World War III Against the Money Trust?3
* Italics in the original. 1 Mencius. Mencius. Translated with an Introduction by David Hinton. David Hinton, 1998. Washington, DC: COUNTERPOINT, member of the Perseus Books Group.
a Emperor Hui Liang, Book One, I.1, at 3.
b To Fathom the Mind, Book One, XIII.25, at 244.
To Fathom the Mind, Book Two, XIV.14, at 261.
d Emperor Hui Liang, Book One, I.7, at 16.
1 Lucretius. The Nature of the Universe. Translated and with an Introduction by R.E. Latham. Harmondsworth, UK: Penguin Books Ltd.
a Life and Mind, at 98.
1 Thomas Paine (1737-1809). Rights of Man, Common Sense and Other Political Writings. at 71.
a Rights of Man (1792), Ch. 11, Of the Origin of the Present Old Governments, at 220-221.
b Dissertation on the First Principles of Government, at 400.
c Dissertation on the First Principles of Government, at 401.
d American Crisis at 64.

1 Karl Marx (1818-1883). Capital: An Abridged Edition. Edited with an Introduction by David McLellan. Oxford, UK: Oxford University Press, 1995.
From Volume 1
a Part II, Chapter 4: The General Formula for Capital, at 98.
b Part II, Chapter 4: The General Formula for Capital, at 99.
c Part VIII, Chapter 26: The Secret of Primitive Accumulation, at 364.

2 Karl Marx. Capital: A Critique of Political Economy. Volume 3. Translated by David Fernbach with an Introduction by Ernest Mandel. Edition and notes, New Left Review, 1981. Translation, David Fernbach, 1981. Introduction, Ernest Mandel, 1981. London, UK: Penguin Group.
a Marx's biography at 1.
a Chapter 5: Economy in the Use of Constant Capital, at 199.
b Chapter 30: Money Capital and Real Capital: I, at 607.
c Chapter 33: The Means of Circulation under the Credit System, at 678-679.
d Chapter 33, at 679. Quotation from G. M. Bell, a Scottish bank director, in The Philosophy of Joint-Stock Banking, London, 1840, pp. 46, 47.

1 Joseph A. Schumpeter. Business Cycles: A Theoretical, Historical and Statistical Analysis of the Capitalist Process (1939). Abridged, with an Introduction, by Rendigs Fels. New York, NY: McGraw-Hill Inc., 1964. (Reprinted 1989 by Porcupine Press, Inc., Philadelphia PA.)
a Capitalism defined, at 179.
b "Reckless banking," at 197.

2 Joseph A. Schumpeter. Capitalism, Socialism and Democracy (1942). 3rd ed. Introduction by Tom Bottomore. Joseph A. Schumpeter, 1942, 1947. Harper & Row, Publishers, Inc., 1950. George Allen & Unwin (Publishers) Ltd., 1976. New York, NY: Harper & Row, Publishers, Inc. (Originally pub. by Harper & Brothers.)
a Crumbling Walls, at 131-142.
b Prologue, at 61-61.
c The Process of Creative Destruction, at 81-86.
d Decomposition, at 156-163.

1 Ayn Rand (1905-1982). The Virtue of Selfishness: A New Concept of Egoism. With additional articles by Nathaniel Branden. Ayn Rand, 1961, 1964. The Objectivist Newsletter, Inc., 1962, 1963, 1964. New York, NY: Penguin Books USA, Inc. (A Signet Book.)
a The Objectivist Ethics, at 36.
b The Objectivist Ethics, at 37.
c Government Financing in a Free Society, at 136.
1 Peter F. Drucker (b. 1909). Technology Management and Society: Essays. Peter F. Drucker, 1958, 1959, 1961, 1966, 1967, 1969, 1970. New York, NY: Harper & Row, Publishers, Inc., 1977.
a Ch. 5: Technology and Society in the Twentieth Century, at 90. Reprinted from Technology in Western Civilization, vol. II, edited by Melvin Kranzberg and Carroll W. Pursell, Jr., Regents of the University of Wisconsin, 1967.
b Ch. 7: The First Technological Revolution and Its Lessons, at 119. Presidential address to the Society for the History of Technology, December 29, 1965; First published in Technology and Culture, Spring 1966.
c Ch. 8: Long-Range Planning, at 132. Reprinted from Management Science, vol. 5, no. 3 (April 1959); based on a paper given before the Fourth International Meeting of the Institute of Management Sciences, Detroit, October 17-18, 1957.
d Ch. 10: The Manager and the Moron, at 175. First published in The McKinsey Quarterly, Spring 1967.
e Ch. 7, at 117.

1 Milton Friedman. Capitalism and Freedom. With the assistance of Rose D. Friedman. Chicago, IL: The University of Chicago, 1962, 1982.
a The Relation between Economic Freedom and Political Freedom, at 13.
b Monopoly and the Social Responsibility of Business and Labor, at 133.

1 Pierre Elliott Trudeau (1919-2000). The Economic Domination of Canada, in Corporate Canada: 14 Probes into the Workings of a Branch-Plant Economy. Edited by Rae Murphy and Mark Starowicz. Introduction by Mel Watkins. Toronto, ON: Canadian Journalism Foundation Incorporated, 1972. Toronto, ON: James Lewis & Samuel, Publishers, at 153-156. (Extracts from an essay in Cit� Libre, May 1958, reprinted in the Last Post, May 1972.)
a At 154.
b At 155.
1 Howard Zinn. A People's History of the United States 1492-Present. Revised and updated ed. Howard Zinn, 1980, 1995. New York, NY: HarperCollins Publishers, Inc.
a A Kind of Revolution, at 99.
b The Coming Revolt of the Guards, at 624.
c Drawing the Color Line, at 29.
d The Coming Revolt of the Guards, at 622 and 627.

1 Edward E. Ayoub, with the assistance of Trudé K. Ayoub. The Essence of Capitalism. Toronto, ON: Macroknow Inc., 2000.
a Heidegger's understanding of Nietzsche's thought of "'justice' . . . as the proper way to be free"; see Martin Heidegger, Nietzsche, Vol. III: The Will to Power as Knowledge and as Metaphysics, at 142. Translated by Joan Stambaugh, David Farrell Krell, and Frank A. Capuzzi. Edited, with Notes and an Analysis, by David Farrell Krell. David Farrell Krell, 1987. New York, NY: Harper & Row, Publishers, Inc., 1987.
b For Oswald Spengler: the trinity consists of "the entrepreneur, the engineer and the factory-worker"; the entrepreneur and the factory-worker "become slaves . . . of the machine"; the danger comes from "the dictature of money"; and the "battle is the despairing struggle of technical thought to maintain its liberty against money-thought." See Oswald Spengler, The Decline of the West, at 409-415. (Vol. I, 1926; Vol. II, 1928). Abridged ed. by Helmut Werner. English abridged edition prepared by Arthur Helps, from the translation by Charles Francis Atkinson. Preface by H. Stuart Hughes. H. Stuart Hughes, 1991. New York, NY: Oxford University Press.

2 Edward E. Ayoub. Bank-Induced Risks. Toronto, Ontario: Macroknow Inc., 1998.
a Heidegger's expression. The Principle of Reason, at 122 and 129 (on "calculative thinking" vs. "reflective thinking"). Translated by Reginald Lilly. Verlag Gunther Neske, Pfullingen, 1957 (Der Satz vom Grund). Bloomington, IN: Indiana University Press, 1991.

3 Edward E. Ayoub, with the assistance of Trudé K. Ayoub. World War III Against The Money Trust? Book III, Chapter 1: The Essence of Capitalism. Toronto, Ontario: Macroknow Inc., 1998.