What’s your take on the whole red states mooching off the blue states thing? I keep hearing this whenever the secession question comes up. Those few libs who don’t want to confiscate Texas from the Texans say “good riddance, you’re a tax burden anyways!”
The following is the sixth paragraph of Barry Germansky’s op-ed Tea Party Heroes Ron and Rand Paul Make for a Bitter Brew, from earlier this year, interspersed with my rebuttals from within the last few days.
BARRY GERMANSKY: Naturally, the Pauls’ preference for putting economic values first – by believing in free market libertarianism, which uses economics in totalitarian fashion to run society – caters to big businesses far more than the average citizen.
HENRY MOORE: Free Market Libertarianism no more uses “economics,” regardless of how that word is defined, to run society, than any other system does. In fact, as I have argued and will continue to argue elsewhere, it is less likely to do so. Is free market libertarianism the only system that seeks to apply its economic principles to society? Or do other ideologies also seek to apply aspects of their ideology, for good or bad, to society? It is clearly the latter. Or at least it would be to someone who didn’t confuse the term “free market” with the term “economics,” which is at the root of your mistake in the above sentence. And there is nothing inherently totalitarian about it either. That goes for any system, let alone one whose actual principles are the definition of totalitarianism’s opposite! Not unless actual force is involved, which you have yet to reliably point to in any manner. So now you are stretching the term “totalitarian” to mean “anything Barry Germanksy doesn’t like.”
However, a system that throws you in jail for not letting the government steal from you (through taxation, inflation, and regulatory costs) necessarily involves force. And that is just its economic side. Just imagine what this same society does in other sectors! Have you heard of wars of aggression and victimless crimes, for example? What is it about the type of system you advocate, where all is arbitrary, all is tailored to the lowest common denominator, that prevents these other totalitarian (by definition) measures from taking place? I put it to you that the system you advocate is no different than the one already in place (and opposed by the Pauls), where the totalitarian crimes I mentioned are widely practiced and sanctified through the supposedly democratic means by which they are implemented, save only by degree.
Government shouldn’t “cater” to anyone. Not big business. Not small business. And not special interest groups masquerading as advocates of the average citizen.
BARRY GERMANSKY: Perhaps this is best demonstrated by Ron and Rand’s constant support for the abolition of government-issued money in favor of currency minted by private banks. As is commonplace with the Pauls, they choose to ignore history or simply distort it.
HENRY MOORE: The government does not issue the money. This is false. If government issued the money the monetary system would have collapsed a long time ago, because a bureaucracy does not have, and therefore cannot respond to, the various incentives and disincentives, associated with actually seeking a profit. The current monetary system is a hybrid of both the public and the private sectors. They remain private in the sense that they are not democratically elected nor accountable to the people they purport to serve, and public in the sense that they are protected and artificially propped up, primarily through various types of fraud and force.
This is fascism. And here you are, a leftist of sorts, defending it as though a monetary cartel was somehow a friend to the common folk. With inflation, anyone living on a fixed income is negatively impacted. It is true, at least in the short term, that an inflationary currency regime helps debtors, but it is equally true and equally important that not all debtors are the poor and downtrodden, and that not all the poor and downtrodden are debtors. In fact, the less “fair lending” regulations there are, the less likely lenders are to “take advantage” of people who cannot repay loans, because there is simply no incentive to do so. Loan sharks who do see incentives are far more common in systems that regulate legitimate lending practices to the point of making it overly costly for most people to operate with them.
So, the Federal Reserve Bank, is a private system reorganized by the state into a quasi-private monopoly. By way of illustration, consider two competing car lots whose salesmen decide they can get more profits by cooperating than they can by competing. So they both agree to raise the price of a vehicle on their lot to the same exorbitant price. Assuming there are no other car lots around within a distance that would make it cost effective to just buy a car out of town, anybody in the area who needs a new vehicle will have no choice but to buy a car from one of the two lots at the exorbitant price. Sure, this is price-gouging, but unless they figure out a way to ban new competitors, it is not yet a cartel. So say there is another salesman who sees the need for, as well as profit in, setting up his own lot and charging significantly less for his vehicles. Free Market. Problem solved. But before he can even get his inventory in, the local sheriff (one of the two cooperating salesmen’s cousin perhaps) comes up with some excuse to shut him down and run him out of town (through threats or bribery or blackmail, etc.). Well, this is exactly how the Federal Reserve, and in fact the entire financial system operates. Only the two price-gouging salesmen are the private banks and institutions who already have connections to government (and no, the root of the problem is not private banking, but a government susceptible to nepotism and corruption), the local sheriff is the government, and the competing salesmen are smaller, less favored banks, who may be even more capable and efficient than the major banks, but are starting at a distinct disadvantage. And yet you defend this system and would seek to create microcosms of it in every sector?
As for history, competing banks and commodity standards have been more efficient and less predisposed to severe downturns than national/central banks have. Unfortunately, even with a great many private banks there has been government manipulation and fraud, or government aiding in or covering up private sector fraud. This is not dissimilar to the more institutionalized manipulation and fraud now an accepted (but not well understood by the average person, nor fully transparent as to the specifics) part of the financial sector thanks to the Federal Reserve and various government regulatory agencies.
Such interference (sometimes initiated by government out of hysteria or motive, sometimes by the private banks themselves to increase their own gain, but remember, government is still the problem here because it made itself responsive to corrupting influences), has at times resulted in panics and runs and recessions and Depressions that have later been blamed on private banking, in general, rather than on the specific administration and the specific banks. But none of these downturns were anywhere near as severe or long lasting (save one, the Long Depression, which was only a depression in terms of decreasing prices, not in terms of a weak, anemic, struggling economy) as those that occurred in the era of, and as a result of, the Federal Reserve System.
BARRY GERMANSKY: Their plan to abolish the Federal Reserve has already been tried to varying degrees, and does not lead to utopian freedom. Instead, it creates an influx of fraud and currency debasement, followed by the concentration of financial power in the few banks that survive the ensuing “big fish versus little fish gladiatorial match”.
HENRY MOORE: The Federal Reserve System has been around for almost 100 years. Not once in that period of time has there ever been an attempt to abolish it. At least not an attempt that had any economic impact. Again your ignorance of history, which you project onto others, I am forced to deal with.
There were two national banks, neither of which were ever referred to as “the Federal Reserve” that had each been abolished. Perhaps that is what you are alluding to. But how could that be? Fully abolishing two banks are not “various degrees” of abolishing a bank. Abolishment is abolishment. Furthermore, the periods of these banks were replete with the problems you mention, though when the government does it they are not referred to as “fraud and debasement” because they are “legal,” while the periods where there was no central bank had less of these things. All of these periods had their fair share of panics, but panics are almost always overreactions to minor inconsistencies. If they are blown too far out of proportion the government steps in to “save the day.” What this usually means is they bail out their cronies (some of whom were just on the wrong end of a risk, others which were defrauding depositors), or where there is a genuine instance of good intentions on its part, wide scale distortions, leading to another round of blame, intervention, and yes, more reason to panic.
Now, there have been attempts to limit its policies, but the one time (1920/1921) where this had any meaningful impact it, a) had a good impact, and b) merely limited it to its original duties, those which it had just three short years prior (1917). Hardly an attempt to abolish it. And if you are referring to more recent history, something under FDR (confiscation of gold) or Kennedy (elimination of silver certificates) or Johnson (profligate spending) or Nixon (ending Bretton Woods) or Reagan (appointing supposed goldbug Greenspan) or whatever you are must be willfully ignorant, because the changes these men made were either attempts to strengthen the Federal Reserve or the equivalent of rearranging the deck chairs on the Titanic.
Concentration of power in already exists. Indeed, it flourishes under central banking. And not just in the finance industry. Central banks are already privately owned cartels. And as if that wasn’t bad enough, they don’t always (if ever) use this power for the public benefit. Crony capitalism (I’ll wager you’d hate that even more than you do free market capitalism, if you knew the difference, that is) is what ensues. Favorites and those owed a favor get bailed out and subsidized. Those to whom this money “trickles down” eventually, as the economy reacts, lose the value that it initially had. This loss of value is always faster than the value gained in interest by saving money in a bank taking its orders from the Fed.
By the way, your metaphor really sucks. It conveys a false message and it is mixed.
BARRY GERMANSKY: Without government regulation to protect the country, individual autonomy among the masses becomes victimized by those with greater influence. The rich and powerful, who account for a small percentage of the country’s total population, have more wealth than the majority.
So now you are a nationalist? Protect the country? From what? The free society that made it great in the first place? The audacity!
What part of individual autonomy don’t you understand? Do I take it the phrase “Don’t Tread on Me” has no value to you? Because if I took your word for it “autonomy” is the right to steal and to kidnap or kill those who resist the theft.
And if you are worried about oppression by the rich and powerful, turn your eyes first to the policies you yourself advocate (or at least defend) that actually facilitate the oppression by the rich and the powerful. And who is this “majority?” Do you mean just anybody who you don’t arbitrarily classify as rich and powerful? Or like a true democrat do you mean 50.1% or more of the people with a minority of 49.9% or less? Or will either one do, depending on the situation? What about those that don’t care that some people have more money and more power? Shouldn’t you subtract them from your “majority?” And if you do, who then will be the majority? If it is the rich and the powerful and their less rich, less powerful allies, will their right to oppress become all of the sudden sacred because at least they are going about it democratically?
BARRY GERMANSKY: In a free market, some unfortunate people – for example, those who are physically disabled or grew up in poverty – will automatically be disadvantaged and have no assistance from society to overcome these factors (which the current system tries its best to accommodate).
HENRY MOORE: Yes, there are such people. But haven’t you heard of “community” or “family” or “charity”? Don’t you have any faith in humanity? None of these things are absent in a free market system. They and their proper functioning are all subject to risk in the free market’s absence, however.
Poverty exists, but like most other things it is exaggerated. For every genuinely distraught person there may be a handful of people who, for lack of better words, are just lazy bums. The average American household under the “poverty line” is in better shape today than all but the richest of the rich were 100 years ago. A rising tide lifts all boats. Poor people today have cable TV, multiple vehicles, washing machines, cell phones, computers, etc. That doesn’t mean we should let people who don’t fit this description fall through the cracks, but there are better ways than bankrupting the country and debasing the currency.
And what is to blame for a lot of this poverty? Minimum wage laws, welfare for the able-bodied, taxation, inflation, regulations, takings, prisons filled with nonviolent criminals, public schools (but then I already listed prisons). In a word, the state.
BARRY GERMANSKY: For these simple reasons, corporate monopolies would be even more widespread without government intervention. The little fish would have no chance.
HENRY MOORE: To recap: big government and big business go hand in hand. They are not foes. They are the best of friends. We are not talking about a little fish fleeing a big fish or a little fish competing for food against the big fish. No, we are talking about two enormous fish surrounding an unsuspecting little fish and tearing him to shreds before he even has a chance to realize what is going on.
Well, that’s not entirely true. But if they pull it off, they’ll be my ex-countrymen. And I don’t mean that in a bad way, I just mean that I will still be stuck here in the good ole US of A. But then, I always considered each state to be its own country, albeit a member state of a treaty known as the United States Constitution.
Unfortunately, I just don’t think that (secession) is going to happen. Just a feeling. I just don’t think that anybody in the upper levels of Texas government, not even the rash worded Rick Perry (Social Security is a Ponzi Scheme and Ben Bernanke is a Traitor, neither of which I disagree with), will let it go through. They have a lot of leverage, but I still doubt they will want to alienate the White House, their non-seceding neighbors, “patriotic” Americans, or “their” own citizens. 90,000 signatures is not a majority of Texans. There are probably just as many, and they aren’t all Democrats, that don’t want to secede, as there are that do. Maybe even more.
This petition will be addressed, as per the fact that it has near four times as many signatures as required by law (25,000). And it will probably be laughed off. By everyone but the signers themselves. I’m not mocking them. I’m just saying that its going to take a lot more than Obama’s re-election before secession is really viable. Remember, the South seceded when Lincoln won with less than 40% of the vote. Obama at least has the advantage of winning with more than 50% (it was, in fact, the perfect example of the 51% rule, which I abhor).
For the time being, my money is on nullification. Odds are if your state is scared to do even this, no amount of petitioning will get them to go one step further and actually renounce membership in the Union. So far, my home state, Montana, is sort of on the right track, though it will be saddled with a sleazy Democratic Governor for the next four to eight years. And he just so happens to be one of the twenty-two State Attorney Generals who refused to fight ObamaCare. Good thing the people of Montana were crazy enough to circumvent him and good thing the only non-county/district level Republican I voted for will be there to take Bullock’s old job and enforce the will of the people of Montana (because 65% is better than 51%).
And that’s why I hang my hat in Tennessee! (Well, not really.)
Perhaps more than any other person in the Liberty Movement (besides Ron Paul, of course), someone I would consider a mentor is Thomas Woods. Andrew Napolitano is a close second. And Frederic Bastiat is long-dead. I’ve read six of Tom’s books, but unfortunately don’t get around to visiting his site as much as I would like. So a thank you shout out to @LitMargaretNan for sharing this link on twitter: A Wikipedia Assignment for You Guys | Tom Woods
In this post he requested that some of his readers edit the wikipedia articles on The Kentucky and Virginia Resolutions and the Alien Act of 1798. It’s been a very long time since I’ve done anything on wikipedia, so I made this meme to commemorate the occasion:
On Tom’s site, I left this comment:
Tom. I’m thumbing through my copy of Nullification right now. Great read by the way.
Here’s what I put at the bottom of the Alien Act page. I’ll give someone else a chance to fix the Resolutions page.
“Others maintain that nullification naturally emanates from the Tenth Amendment in the last resort. Thus they see nullification as a legitimate tool of the states. The reasoning behind this is the idea that the individual states created the union, and aside from having the right to leave it (as enumerated in the Virginia and New York Constitutions), as equal parties were able to interpret for themselves on the same footing with the other parties in the compact. This was, in theory, to prevent tyrannies that might go unchecked by the three branches of the federal government. One such person, Thomas E. Woods, in is book ”Nullification” also holds that nullification, apart from being a legitimate function of the states, is a necessary one, increasingly so as the size and scope of the federal government increases.”
I highly recommend Nullification: How to Resist Federal Tyranny in the 21st Century to anyone interested in liberty, history, current events, or the meaning of the Constitution. And for anyone who is not interested in at least one of these things it must be because you are one of the undead. But that’s okay, I recommend it to you as well. After all, Nullification is 100% zombie-approved!
Whether you agree with it or not, nullification is happening. Little by little, the states are reasserting their Tenth Amendment rights. If the President, the Congress, and the Courts won’t enforce it, the states will. This will more and more be the case as things come to a head with debacles like ObamaCare, cartel money, mismanagement of land, gun control, and overbearing environmental and energy regulations.
Just one example. On November 6th, the voters of Montana interposed on their own behalf against the healthcare mandate.
Here’s some related articles:
The fifth of November
The gunpowder treason and plot.
I know of no reason
Why the gunpowder treason
Should ever be forgot.”
That was technically yesterday (Mountain Standard Time), though I when I started this piece I hadn’t gone to bed yet. Today is officially election day. This post is intended to bring a few things to everyone’s attention. Many people already know these things. Some don’t. Either way, as usual, I will put a little of my own spin on it.
First on the election.
On the presidential elections (I still have not voted yet today, but I think I will make it to the polls before they close), voting doesn’t really effect the election outcome unless you are in a battleground state. So I hope most people will be voting their consciences. Voting, however, does send a message, and that message for each voting block is the same REGARDLESS of the outcome. What I mean by this is, if you support someone but vote for someone else, odds are that not only will that vote have no effect on the outcome (unless, as I said, it is a tight race) in terms of who the next president is, but you are also keeping people from knowing what you truly believe. Voting to send a message therefore has much more of an impact than voting to put someone in power.
And now, the rest of the post on ongoing and attempted takeovers of the liberty movement by 1) Occupy Wall Street (this was only a minor and unintended offense on their part), 2) the rank and file of the Tea Party (originally a good thing, but now more or less synonymous with the GOP), and 3) the Kochtopus (who in my conspiratorial mind own Jesse Benton, Paul Ryan, Mitt Romney, and a good portion of many Republican, Tea Party, and Libertarian groups, organizations, and individuals, though I do not allege that everyone employed are receiving funds from the Koch Brothers is automatically a blind tool).
407 years ago this night was the Gun Powder plot where a group of English Catholics attempted to Assassinate James I of England. All religious considerations aside (I am not a Catholic), it was an act against oppression and thus a tradition has come down to us today, mainly in England, to celebrate the anniversary. I won’t go into any details about how the Fifth of November, AKA Guy Fawkes Day is traditionally celebrated, but I do want to call attention to the man it was named after. But not the historical man because that is fairly boring. It is to the fictionalized, mythologized, romanticized, and later Hollywoodified version that I will point you. Guy Fawkes is a Robin Hood-like hero in these later accounts, and much the same he has captured many hearts and minds. Like Robin of Loxley, he stands against the existing order, the status quo, and evades the unjust authorities, but perhaps unlike him, the whole idea of tyranny. What more could I ask for?
We’ve all seen the Guy Fawkes masks, the ones that come from the movie V for Vendetta. The first people that used them as activists, perhaps to the surprise of many, were in fact Ron Paul supporters. Not the hackers group Anonymous, and not the Occupy Wall Street movement. Just like with the Tea Party movement.
Speaking of Anonymous, Guy Fawkes, and Ron Paul, check out this “leak” and the video below.
Ron Paul raised $4.3 Million on Guy Fawkes Day in 2007. Why a similar money bomb didn’t occur in 2011 is probably due to former Campaign Manager Jesse Benton’s fear and loathing of anything resembling disorder or fringe or passion.
Most Ron Paul supporters had their suspicions of Jesse Benton. Some smelled a rat early on. Other reserved judgement until it was too late.
Adam Kokesh was one in the former category. [Warning: Foul Language!]
He regarded Jesse Benton and Campaign for Liberty (under Benton’s leadership at the time) with disdain from early one, at first for what seemed to be personal reasons, but later what turned out to be a dead-on instinct.
This all reminds me of an historical episode that occurred between another Jesse Benton, and a man who might be considered Ron Paul’s role model against the Central Bank, President Andrew Jackson.
Campaign for Liberty was perhaps the first real Tea Party organization, although in a sense Dick Armey’s Freedom Works (2004), the Koch Brothers’ Americans for Prosperity (2004) Grover Norquist’s Americans for Tax Reform 1985), and the Koch Brothers’ Citizens for a Sounds Economy (1984) all deserve honorable mention.
Even Murray Rothbard can be said to have had a role, albeit a small one.
And speaking of Murray Rothbard and the Kochtopus, I suggest you read some of these links I have done many hours worth of research looking for. I have read a number of them myself. There is some really juicy stuff in there. And it should be required reading for any liberty minded person worried about the corrupting influences to be found in politics, even in the libertarian movement. I don’t know entirely what to make of it all other than that the Koch brothers have done many great deeds for which they should be praised, but all for what appear to be the wrong reasons, reasons, which have also caused them to do a great deal of more sinister things. Perhaps enough to outshine their more praiseworthy endeavors. They are corporate fascists and elitists no less than George Soros and Warren Buffet. They just have a different strategy. Perhaps the most clever and dangerous.
May 28, 2007
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January 1, 2012
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Two Additional Links I can’t put in the chronology:
One of the most interesting things (and there were many) I garnered from reading these is the Kochtopus’ love for Central Banking, despite their roots in Austrian Economics. Evokes memories of Alan Greenspan. And why the Koch Brothers put stock in Herman Cain. And why Rick Perry was derided by so-called conservatives when he called Ben Bernanke a traitor. And why their oh so brief ally Ron Paul is so hated by them and theirs anymore.
And it reminds me further of several graphics I have seen floating around on the various End the Fed sites and blogs. A stream of consciousness post like this would be seriously remiss without tying everything together with a few related images.
Do I need to spell out the connection?
Hydra/Kraken/Squid/Octopus/Kochtopus/Leviathon/Federal Government/Federal Reserve/National Bank/Petrodollar/Koch Industries/Corporations/Military Industrial Complex/Fascism Hello?!?!
Please don’t think I’m going all occult on you or anything (I do admit that I came across some pretty dubious sites looking for some of these images). I just really like mythology and history and metaphors and analogies.