Authored by Philippe Lemieux via Mises Institute,
Liberty's history is often presented as a direct consequence of the Enlightenment: inherited authority was subjected to reason, persecution gave way to toleration, monarchy to constitutional government, and privilege to individual rights. In this account, classical liberalism leads naturally to Austrian economics and modern libertarianism. That sequence is useful but incomplete.
Liberty developed through the convergence of two lineages. The first is the modern lineage of Enlightenment criticism, which required political power to justify itself before reason. The second is an older realist tradition, running from Aristotle and Thomas Aquinas through the School of Salamanca, Richard Cantillon, Carl Menger, Eugen von Böhm-Bawerk, Ludwig von Mises, and Murray Rothbard. These thinkers did not form a single school, nor did they agree on every question. What connects them is a shared orientation: reality has an intelligible order, human action has a structure, and political power cannot be abolished either by command.
The relevant difference is not between the Enlightenment as a whole and an older tradition, nor between reason and faith. Important currents within the Enlightenment, especially the Scottish Enlightenment, recognized that custom, law, money, and markets could arise without deliberate design. The deeper conflict is between a constructivist current within modern thought and an older causal-realist approach to social order. Friedrich Hayek identified the pinnacle of this constructivism as the "fatal conceit," the erroneous belief that man is able to shape the world around him according to his wishes. The realist tradition emphasizes the intelligibility and causal structure of social phenomena, while the constructivist tendency places greater confidence in deliberate organization and direction.
The danger appeared when criticism of inherited institutions hardened into confidence in consciously-designed ones. Locke was not Marx, and constitutional government was not socialism. The continuity lies in method: once social order is treated primarily as an artifact of design, political disagreement increasingly turns on the identity of the designer, the objective of the plan, and the permitted range of control. This tendency appears in social planning, price controls, central banking, licensing, regulation, and the administrative management of economic life.
The older lineage begins from a different premise. Aristotle started with beings as they are and the ends toward which they tend. Human beings choose, deliberate, employ means, form households, exchange goods, and enter associations. Thomas Aquinas carried this realism into law and politics. A command does not become just simply because a ruler issues it. Human law derives its normative order from principles that political authority does not itself create.
Many late Scholastics, particularly the Spanish Scholastics associated with Salamanca, extended this framework to property, exchange, money, and political authority. They increasingly identified the just price with common estimation, shaped by utility, scarcity, and market conditions, rather than with an objective measure of production costs. By situating economic phenomena within moral agency and commutative justice, they placed limits on the arbitrary exercise of political authority in economic life. Within this tradition, thinkers such as Juan de Mariana also articulated strong limits on taxation, confiscation, and monetary debasement.
Richard Cantillon advanced this analysis by placing entrepreneurship, uncertainty, production, and market-price formation near the center of economic life. Merchants and retailers bought at known or fixed prices and later sold at prices they could not foresee, while farmers committed themselves to fixed rents without knowing what their output would command. Profit, loss, and bankruptcy therefore arose from judgment under changing conditions of demand, competition, weather, and consumer preference.
Carl Menger marked a decisive transition within the Austrian tradition. Much of British classical economics, especially in the Ricardian tradition, explained long-run exchange value primarily through labor and production costs. Menger instead began with human needs and with the economizing individual's knowledge of, and command over, goods capable of satisfying those needs. Value was not a substance stored inside an object; it arose from the relation between an individual, his needs, and the goods available to him. Market phenomena therefore had to be traced to individual judgments, choices, and exchanges. Prices, money, and other social institutions could emerge from economizing activity even when no one intended the resulting order.
Böhm-Bawerk extended the analysis to capital and time. For him, social or productive capital consists of intermediate goods used in time-consuming processes of production before final consumer goods become available.
Mises generalized the Austrian insight through praxeology, making economics part of a broader science of human action. The starting point was not an aggregate, a class, or a governmental objective; it was the acting individual employing scarce means to attain chosen ends. Exchange, prices, profit, loss, money, capital, and production are intelligible only within this structure of purposeful conduct. Mises presented praxeology as an a priori science grounded in the category of human action, with implications that could be developed through deductive reasoning independently of particular historical experience.
The extent to which this epistemology should be understood as Kantian, however, is contested. Jörg Guido Hülsmann has argued that Mises is better understood as a representative of Aristotelian realism. Although Mises employed the language of the a priori, Hülsmann points to the method of Mises's actual economic analysis, which repeatedly seeks to identify the nature and necessary relations of economic phenomena. Hülsmann therefore places him within the broader Austrian realist tradition of Menger and Böhm-Bawerk, arguing that his affinities with Kant should not be overstated. On this reading, Mises occupies an intermediate position within the lineage developed here: his epistemological vocabulary is partly Kantian, while the substance of his economic analysis retains an important Aristotelian-realist character.
Mises's critique of socialism demonstrated the practical consequences of this method. Socialist calculation does not fail merely because officials are corrupt, uninformed, or unintelligent. It fails because abolishing private ownership in the means of production eliminates genuine exchange in capital goods. Without exchange, there are no market prices through which planners can compare competing uses of resources by means of monetary calculation.
A planning authority may collect technical information, issue targets, and assign accounting figures. Such figures, however, are not exchange ratios generated by transactions among separate owners. A statistical table can describe quantities, but it cannot determine whether steel should be used for bridges, machinery, railways, or buildings in a way that responds to consumer demand and alternative costs. The defect is not located in the personality of the planner; it is built into the institutional structure of the system.
Rothbard brought this lineage to its most systematic political conclusion. He combined Austrian value theory, capital theory, and economic calculation with a broader theory of natural law, natural rights, property, and the state. His philosophical foundation differed from Mises's. Rothbard retained the praxeological method of deduction but interpreted the action axiom from an Aristotelian-Thomistic epistemological standpoint, grounding it in the nature of reality rather than in Mises's neo-Kantian conception of the action axiom as an a priori category of thought.
Rothbard also rejected the convenient story that economics began with Adam Smith and advanced in a straight line toward modern science. In his history of economic thought, he restored the Spanish Scholastics, Cantillon, the French liberal tradition, and other neglected thinkers to a central place, arguing that their contributions had been obscured by the later dominance of British classical economics.
The administrative state shows what happens when the emancipatory language of the Enlightenment is separated from the limits imposed by human action, scarcity, property, and economic calculation. It speaks the language of rights while turning rights into permissions. It recognizes property and permits markets while reserving the power to direct their use through zoning, licensing, taxation, monetary policy, and regulation. It preserves elections while transferring decisions to agencies, central banks, and experts. The system remains liberal in vocabulary and managerial in operation. Failure is treated not as evidence of institutional limits but as proof that the machinery requires another adjustment, a new rule, a larger staff, or a wider jurisdiction.
The history of liberty, therefore, is not the story of one Enlightenment becoming more consistent, but of two converging lineages. One challenged inherited authority; the other emphasized the limits that human action, causality, property, and economic calculation impose on deliberate construction. Austrian economics stands where they meet. Social order emerges through individual action, exchange, calculation, and cooperation under conditions that no central authority can fully command.
Tyler Durden Wed, 09/02/2026 - 23:25A dispute over a record sale escalated into threats and an alleged attempt to set a Portland record shop on fire, according to prosecutors.
Adrian Orange, 40, is accused of confronting the owner of Vinyl Resting Place in St. Johns on Aug. 27 after the store declined to purchase records he brought in, according to KATU ABC. Court documents say Orange threatened the owner, calling him a “dead man.”
Investigators say Orange later returned after the door had been locked, placed newspaper beneath the entrance, poured lighter fluid on it and ignited it.
A woman from a neighboring business intervened and extinguished the flames after Orange walked away. Authorities say he threatened her as well.
The KATU report says about 15 minutes later, Orange allegedly returned and kicked the store’s door while making additional threats, including, “One way or another, I’m getting to you.”
Police later located Orange outside a nearby bar. He acknowledged visiting the record shop earlier to sell records and had a lighter with him when officers found him.
Orange was arraigned on attempted arson, two burglary counts, coercion and menacing. A judge ordered him held without bail pending a preventive detention hearing.
Afterward, the store owner wrote on social media about his frustration with the broader mental health crisis, saying he felt he had exhausted his options for dealing with the problem.
Tyler Durden Wed, 09/02/2026 - 23:00By Tsvetana Paraskova of OilPrice.com
Three LNG carriers loaded from Qatar and the United Arab Emirates in the Persian Gulf have transferred their cargoes onto other vessels outside the Strait of Hormuz in the past month, a move that’s highly unusual for LNG cargoes but one that could raise the crippled LNG shipments from the region.
LNG traffic at the Strait of Hormuz nevertheless remains at a standstill, even though oil flows are estimated to have rebounded in recent weeks.
However, unlike crude oil, it’s much more difficult to shuttle-ship LNG through Hormuz and then reload it via a ship-to-ship (STS) transfer as Persian Gulf producers, including Qatar, have been doing in recent months to ship oil to customers.
The UAE and Qatar appear to have done this with three LNG cargoes in August, Reuters reported on Wednesday, citing vessel-tracking data from Vortexa and Kpler.
The three LNG carriers in question include Greek-owned GasLog Shanghai, which was involved in an “incident” in the Strait of Hormuz at the end of July, and transferred its cargo onto GasLog Savannah offshore Oman outside the Strait in late August.
Qatar-owned Al Rekayyat, hit by a projectile near the Strait of Hormuz in early July, also conducted an STS transfer with Qatar-owned tanker Tembek in mid-August, according to the data compiled by Reuters.
The cargo on the Tembek was delivered to India on August 31.
ADNOC’s Mraweh LNG carrier also made an STS onto LNG Enugu outside the Strait offshore Oman in the middle of August, and is en route to deliver the cargo to Japan, according to the data.
The lack of meaningful recovery of LNG flows from the Persian Gulf and Qatar’s extended force majeure on deliveries combined with the U.S.-Iran re-escalation to hike Asia’s spot LNG prices to a five-month high and Europe’s benchmark natural gas prices to a three-and-a-half-year high this week.
Tyler Durden Wed, 09/02/2026 - 22:35Chinese President Xi Jinping in a rare trip to the Cairo told his Egyptian counterpart on Wednesday that "external interference" in the Middle East should be opposed, Chinese state media reported.
Talks in the Egyptian capital between Xi and Egyptian President Abdel Fattah El-Sisi were a first in a decade. Interestingly, Xi at one point pledged Beijing was willing to help protect maritime shipping - though it's anything but clear what specifics would look like, or what bodies of water he had in mind.
via Reuters"China stands ready to work with countries in the region to safeguard the security of international shipping lanes, advance development cooperation… and eliminate the breeding grounds for conflict," Xi said as quoted in Xinhua.
Ironically the 'offer' comes months after President Trump urged international powers to do just that, but which was met by resounding silence, even among European leaders. Naturally they don't want to get bogged down in yet another US foreign adventure, especially when there's been lack of strategy coupled with repeat contradictions along the way.
As for his remarks about non-interference, Xi clearly had in mind the still-raging US-Iran war, which has turned into a bit of a quagmire for the US, having hit the six-month mark just this week:
"We must uphold the principle that the people of the Middle East are the masters of their own affairs, oppose external interference [and] support regional countries in strengthening dialogue on peace and security."
The other irony on display is that Egypt's is essentially a military government which is bought and paid for by the United States to the tune of around $2 billion or more in bilateral foreign assistance each year. This goes back to the historic peace with Israel, and the Egyptian 'deep state' has been closely cooperative with US intelligence ever since.
Along with talk of how to advance diplomacy related to the Iran war, the two sides signed a significant Suez Canal investment deal:
The talks covered the six-month US-Iran conflict, with both presidents urging "diplomatic solutions" to reach a "comprehensive agreement to end the war", according to a statement from Sisi's spokesperson.
Sisi's office also said the two BRICS members signed an agreement to launch the third phase of the Egyptian-Chinese industrial zone at the Suez Canal, which officials say already hosts 200 companies and investments worth around $4 billion.
The new investments – for which Egypt has not announced a figure – give Beijing even greater influence in the canal zone, a critical artery of global trade, as conflict in the region chokes other conduits.
Regarding the White House's Economic D-Day sanctions on Iran, Beijing last month rejected cooperation with the policy meant to strangle the Islamic Republic.
Egypt stays committed to 'One China'...
Sisi’s statements are neither a personal opinion nor a passing remark; rather, they represent the official and steadfast stance of the Egyptian state for decades.
Egypt recognized the People’s Republic of China in 1956, voted in favor of United Nations General Assembly… https://t.co/Nsp8F2dCWv
China has been pushing back against Trump administration pressure to be part of the "toughest sanctions in history" which has marked a new phase of conflict focused on extended economic warfare, as a military solution has proven increasingly unrealistic and unlikely.
"Regarding the Iran issue, sanctions and pressure do not help resolve the problem," Reuters quoted a representative of the Chinese Embassy in Washington as saying in late August. The White House's recent plan hinges on on external countries imposing extreme isolation on the Islamic Republic.
Tyler Durden Wed, 09/02/2026 - 22:10