The Sociology of the Mises Institute Cult
The Mises Institute has a long history of silencing those who dare to criticize their sacred cows. Obviously, they get upset when people point out the blatant homophobia and racism of some of their members. That much should not be surprising; if I was a bigot or associated with bigots, I would't want that knowledge publicized too widely either.
What is surprising, to me at least, is that they even get offended if you point out their idiotic position on fractional reserve banking. I blogged about this way back when I attended one of their summer seminars four years ago. Walter Block responded to my very reasonable and pointed questions with either obfuscation or silence. He did not have an answer to give me because there is not one; fractional reserve banking clearly isn't fraud if the purchaser of the currency and those who receive it as payment for goods or services are made aware of the risk involved.
This is such a nice blog. Why ruin it with a discussion of FRB?
In other words, keep your mouth shut, Bob, if you want to remain on good terms inside our little cult. Don't rock the boat. Don't question our obviously false, embarrassing, and inconsistent position on such a basic issue of economics and libertarian theory as fractional reserve banking.
Gene Callahan, another ex-cult member who, like me, has since parted ways, writes:
The anti-FRB position is so obviously full of holes that Jeff prefers it not to be discussed at all. He would do the same thing on the Mises List -- as soon as this discussion would come up, he would stop it, and say, "This issue is to deep to be settled on a mailing list." But discussion was allowed on other issues just as deep.
They are gradually turning into a cult, if they have not become one already. Which is kind of ironic, given Rothbard's diagnosis of Ayn Rand's inner circle.