Hamas, Israel, and the Collapse of the Fiat Global Order

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by Mac Slavo, SHTF Plan:

This past weekend, the world witnessed absolute barbarism play out as Hamas agents brutally targeted Israeli civilians. The State of Israel, suffering from a historic failure to protect its residents, has predictably responded with major military operations in the Gaza strip. The result is a growing regional conflict fueled by historic feuds beyond the scale of traditional geopolitical considerations.

Add to this the ongoing war in Ukraine, a less-talked-about conflict between Armenia and Azerbaijan, and the threat of renewed fighting between Kosovo and Serbia, and the world is witnessing the breakdown of a global order established by modern assumptions that are being exposed.

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In the later part of his career, Murray Rothbard identified the Whig theory of history as one of the most dangerous intellectual traps in existence. The general belief that society is in a constant march toward progress, that newer ideas reflect a natural upgrade over past wisdom, has been accepted by broad segments of the modern intellectual class. As Hans-Hermann Hoppe has critiqued, this theory underlies a number of modern assumptions about the world.

Whig hubris has resulted in a global order that has sowed the seeds of barbarism. The triumph of fiat money has created an economic system that enriches states and the politically connected at the expense of the rest of society. Technocratic public health initiatives created authoritarian states in the face of a global pandemic. Politically driven climate hysteria has prompted a policy agenda that is gambling away human well-being on utopian promises of a “green energy” revolution.

The deadliest of these false assumptions has been the modern “rules-based international order” guided by post–Cold War US hegemony. The triumph of “liberal democracy” over the Soviet Union fueled the hubris of Washington and its allies—their belief that the world could be shaped to fit into comfortable models, that concerns over ethnicity, religion, and the past could be transformed by the power of economics and intellectual change.

By this thinking, Afghanistan and Iraq could be transformed with just the right mix of warfare and pocket constitutions. Russian ambitions could be blunted with the right mix of regional defense treaties and economic relations. China would adopt Western liberalism with enough global trade.

Underlying these assumptions of US power has been the triumph of the dollar, which has financed the American empire and become the foundation of the global economy. With US debt as the most reliable financial asset in the world, America has enjoyed the privilege of incredible soft power in dealing with major nations, allowing its military focus to be directed at nonstate terrorist groups and “rogue state” allies.

This belief in a global order backed by American economic and military power, limited only by political will, has influenced how other global actors have operated. Foreign lobbies have dedicated vast resources to Washington. While the influence of the Israel lobby is the most visible, with politicians vocally pledging their allegiance to the Jewish state, since 2016 nations like Qatar, Saudi Arabia, China, Japan, South Korea, and others have also invested hundreds of millions of dollars in influencing American policy.

Assumptions of American support have undoubtedly influenced nations’ strategic decisions about their own security. Ukraine surrendered Soviet nuclear weapons in exchange for Western security promises, which for a long time may have served as a potent deterrent to a Russian invasion. The government of post–World War II Japan demilitarized in exchange for its own security guarantees from the United States. With rising concerns over China, Washington and Tokyo have pivoted toward rearmament.

Decisions made by the State of Israel have also been guided by false assumptions, such as the belief that militant movements would be easier to delegitimize internationally than other political actors seeking to create a Palestinian state. As the Wall Street Journal reported in 2009:

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