The Wilsonian century

David Stockman explains that the 20th Century was a massive mistake and much of the blame for it can be laid at the feet of America’s second-worst president to date, Woodrow Wilson:

My humble thesis tonight is that the entire 20th Century was a giant mistake.

And that you can put the blame for this monumental error squarely on Thomas Woodrow Wilson——-a megalomaniacal madman who was the very worst President in American history……..well, except for the last two.

His unforgiveable error was to put the United States into the Great War for utterly no good reason of national interest. The European war posed not an iota of threat to the safety and security of the citizens of Lincoln NE, or Worcester MA or Sacramento CA. In that respect, Wilson’s putative defense of “freedom of the seas” and the rights of neutrals was an empty shibboleth; his call to make the world safe for democracy, a preposterous pipe dream.

Actually, his thinly veiled reason for plunging the US into the cauldron of the Great War was to obtain a seat at the peace conference table——so that he could remake the world in response to god’s calling.

But this was a world about which he was blatantly ignorant; a task for which he was temperamentally unsuited; and an utter chimera based on 14 points that were so abstractly devoid of substance as to constitute mental play dough.

Or, as his alter-ego and sycophant, Colonel House, put it:  Intervention positioned Wilson to play “The noblest part that has ever come to the son of man”.  America thus plunged into Europe’s carnage, and forevermore shed its century-long Republican tradition of anti-militarism and non-intervention in the quarrels of the Old World.

Needless to say, there was absolutely nothing noble that came of Wilson’s intervention. It led to a peace of vengeful victors, triumphant nationalists and avaricious imperialists—-when the war would have otherwise ended in a bedraggled peace of mutually exhausted bankrupts and discredited war parties on both sides.

By so altering the course of history, Wilson’s war bankrupted Europe and midwifed 20th century totalitarianism in Russia and Germany.

These developments, in turn, eventually led to the Great Depression, the Welfare State and Keynesian economics, World War II, the holocaust, the Cold War, the permanent Warfare State and its military-industrial complex.

They also spawned Nixon’s 1971 destruction of sound money, Reagan’s failure to tame Big Government and Greenspan’s destructive cult of monetary central planning.

So, too, flowed the Bush’s wars of intervention and occupation,  their fatal blow to the failed states in the lands of Islam foolishly created by the imperialist map-makers at Versailles and the resulting endless waves of blowback and terrorism now afflicting the world.

And not the least of the ills begotten in Wilson’s war is the modern rogue regime of central bank money printing, and the Bernanke-Yellen plague of bubble economics which never stops showering the 1% with the monumental windfalls from central bank enabled speculation.

Consider the building blocks of that lamentable edifice.

First, had the war ended in 1917 by a mutual withdrawal from the utterly stalemated trenches of the Western Front, as it was destined to, there would have been no disastrous summer offensive by the Kerensky government, or subsequent massive mutiny in Petrograd that enabled Lenin’s flukish seizure of power in November. That is, the 20th century would not have been saddled with a Stalinist nightmare or with a Soviet state that poisoned the peace of nations for 75 years, while the nuclear sword of Damocles hung over the planet.

Likewise, there would have been no abomination known as the Versailles peace treaty; no “stab in the back” legends owing to the Weimar government’s forced signing of the “war guilt” clause; no continuance of England’s brutal post-armistice blockade that delivered Germany’s women and children into starvation and death and left a demobilized 3-million man army destitute, bitter and on a permanent political rampage of vengeance.

So too, there would have been no acquiescence in the dismemberment of Germany and the spreading of its parts and pieces to Poland, Czechoslovakia, Denmark, France, Austria and Italy—–with the consequent revanchist agitation that nourished the Nazi’s with patriotic public support in the rump of the fatherland.

Nor would there have materialized the French occupation of the Ruhr and the war reparations crisis that led to the destruction of the German middle class in the 1923 hyperinflation; and, finally, the history books would have never recorded the Hitlerian ascent to power and all the evils that flowed thereupon.

In short, on the approximate 100th anniversary of Sarajevo, the world has been turned upside down.

The war of victors made possible by Woodrow Wilson destroyed the liberal international economic order—that is, honest money, relatively free trade, rising international capital flows and rapidly growing global economic integration—-which had blossomed during the 40-year span between 1870 and 1914.

That golden age had brought rising living standards, stable prices, massive capital investment, prolific technological progress and pacific relations among the major nations——a condition that was never equaled, either before or since.

Now, owing to Wilson’s fetid patrimony, we have the opposite: A world of the Warfare State, the Welfare State, Central Bank omnipotence and a crushing burden of private and public debts. That is, a thoroughgoing statist regime that is fundamentally inimical to capitalist prosperity, free market governance of economic life and the flourishing of private liberty and constitutional safeguards against the encroachments of the state.

So Wilson has a lot to answer for—-and my allotted 30 minutes can hardly accommodate the full extent of the indictment. But let me try to summarize his own “war guilt” in eight major propositions——a couple of which my give rise to a disagreement or two.

There is more, considerably more. Read the whole thing. He is not wrong, except in claiming that either Bush the Younger or Obama are worse than Wilson, or that Wilson was worse than Lincoln.