From Reaction, Depression and Hopelessness to Envisioning the Future with Freedom!

No, I ain’t talking about the “new normal”. That is epic BS PsyOp stuff to get the masses to accept whatever the elites and global cabal want the slaves to believe. I am talking about critically thinking through what has happened and KNOW that there are GOOD unintended consequences to the government’s overreaction to this flu-like virus, the ‘Rona.

I am starting to see some good writers start to move from helping us all understand what is really going on by digging deep into researching the lies and myths our government and media handed us in the last few months towards helping us see how this might all play out. One of my faves in this season is Bill Sardi who has something to say almost everyday from the Lew Rockwell dot Com site, which could be on most people’s to-do list everyday with our morning coffee!

We all should know by now that the federal government of the USA got this lock-down/house-arrest action started based on CDC input that utilized methods developed by Donald Rumsfeld in 2006 towards what we just experienced. The fact that this method was used across the globe says a lot about who all are behind this.

“Necessity is the plea for every infringement of human freedom. It is the argument of tyrants; it is the creed of slaves.” – William Pitt

For the purposed of today’s post I just want to highlight some things, some positive, some futuristic and of course all might cause some degree of fear since we have not done this before. We should know by now that almost all governments are inept at any kind of innovation or envisioning of the future as their mantra is usually status-quo and group think which leads to dumpster fires and clusterf*cks.

Bill Sardi’s title of his LRC post:

What Big-Government, Fascist, Left-Wing Indoctrinationists Never Thought Would Happen: Homeschooling, The End Of Doctoring, Reliance On Self-Care, Vitamin Pills In Place Of Vaccines And Maybe Even Gold-Backed Money

… indicates that the “Leftists” are probably caught off guard by some of the things happening as a result of their continued push for lock-downs in states and for schools this fall. Bill bring up just a few to help us enter the process for considering a continuation of “normal” that is basically another season of human advancement chained to the fact that we are all broken people with faults so that we should always consider there are evil agendas in the background of every endeavor.

But there is another ironic side to this unprecedented social engineering project that is underway.

  • Who would have ever thought that mothers, fearful of their children being infected with the COVID-19 coronavirus, aren’t thinking of taking their kids to the doctor for shots after the epidemic is over.
  • Who would have thought that doctors, fearful of getting infected by their patients, are retiring for good, ushering in an era of self-care.
  • Who would have thought the masses would be taking vitamins instead of Big Pharma’s drugs to protect against the COVID-19?
  • Who would have thought that parents may not be taking their kids back to school come Fall and have decided to homeschool.

See? I told you that you might have hope for the future once you get through the grieving process of what has happened in the past few months courtesy of the government who takes your money!

The balance of the article targets different areas of our society’s life that will evolve over the next few years. Sure there are some rough times ahead .. but in the spirit of Thomas Paine:

Are y’all up for the challenge to present your kids and grandkids peace someday?

Let’s explore what Bill Sardi has on his mind the end of May 2020:

1. According to economist John Williams, the U.S. is increasing money supply by 15-20%. That could mean inflation of 15-20%. The U.S. Federal Reserve quotes 2.2% inflation which is its target number and the financial press conveniently publishes that number to the masses. But actual inflation prior to the entry of the COVID-19 virus has been ~6% according to Shadowstats.com, meaning a worker would have to ask for a 6-percent pay raise every year to keep up with inflation. Well, now that number may rise to 20%.

Yes, it is true when the money supply (which expanded already 2.5x since the 2008 recession) expands, fiat money moves towards its intrinsic value, $0.00. Because of all the bubbles and all the debts all around our fake US economy that has had the can kicked since the FED was created in 1913, there is no easy way out. We will have to see businesses close, bankruptcies happen and eventually, government drastically down-sized on all levels, federal, state and local. This is a multiple decade reality so we might as well start. The over-reach of government has fast tracked this process and now there is the momentum to keep this going.

This is how the idea of a guaranteed income arose. Low-income workers are doomed.  America has a real plague of low income workers (53 million workers — 44% of all workers — who have low-wage jobs of ~$10/hour and annual incomes of less $20,000; many of these being females with children in part-time jobs).  Something must be done apart from price controls to keep the price of food, energy, housing and transportation from pushing millions of Americans into the street.  If we don’t maintain free markets and competition the price of food will never go down.  Recognize, the federal government bought 1.4 billion pounds of cheese that it has stockpiled.  Rather than reduce dairy subsidies the USDA has been paying to have surplus milk made into cheese.  Food banks could use this cheese, especially now.

More on the low-income workers in the next bullet point, but here we see the government “help/intervention” being worse than no help at all. The government will have to get out of these areas where they have no expertise .. which leads me to this diagram:

So how low do we go in restricting where government can be the middleman? I am sure in urban areas they want socialism whereas in rural areas they might want minarchism. This then would lead to the discussion of secession and the formation of city-states and the like and unpack the central government we have today. THAT will have to be a future post.

Back to Bill’s list:

Many Americans fear 5-G networks for reasons of imagined gene mutations, impaired immunity and electronic toxicity. The problem with that thinking is, so does sunlight.  That drivel serves to distract from the real intent of the 5-G revolution. The impetus to usher in 5-G satellite networks is to bring in an age of robotic “workers” and AI-controlled vehicles.   This will be the new division of labor in America.  5G is needed so there is no lag-time in commanding these electronic slaves.

Robots will replace human labor, in particular low-skilled/low-income workers whose repetitive work can be automated.   By bumping millions of workers performing menial labor out of a job makes room for the 5-G controlled robots.

Then the U.S. will have a highly productive labor force of 24/7 robots that never require sick-time, vacations, or even FICA deductions out of their paychecks to fund Medicare and Social Security.  While this advancement makes America more competitive and independent, this new division of labor scuttles any idea of funding Medicare in its present form.  Un-skilled immigrants won’t be coming to America for jobs any longer.  Some may return to their country of origin.  Social welfare costs will decline.

Thus the U.S. will be able, via AI robotic labor, shed itself from reliance upon cheap foreign labor overseas to produce many products it now imports.  AI is a shot to the heart of China.  The Chinese will have to start paying their labor more money to create their own consumer economy.  (However, even China intends to utilize robotic labor.). The problem is, robotics and AI are a bonanza for the wealthy.  Where will the menial laborers go?  This question is asked with regard to the forecast by Deagel.com that the American population will decline by 230 million over the next five years.  Maybe the movie Soylent Green, which attempted to show what the U.S. would be like in 2022, was prescient.

OK, if we focus on this point #3 one paragraph at a time we can be reassured that 5G health concerns, while real, need to be offset by the positive attributes of this technological advance. We need to count the cost and accomplish the due diligence to ensure that human health is taken into consideration with independent research while also seeing what robotic innovation has in store. Robots have made huge strides in car manufacturing, laboratories, etc. We need to all research this so we don’t carried away by the fads .. remember the fear people had when we went from horses to trains and to cars, we need to invest time to research things ourselves so we can be wise in the midst of those driven to insanity in masses.

Beyond this, the low wage worker’s future could be a lot better IF the government would back off all the regulations for starting a business. Increasing the opportunity for especially young people to develop a career where they give value via the Internet to allow more home-based businesses ESPECIALLY in a time when homeschooling might very well explode would be a win-win. Let creative entrepreneurs have the freedom to explore without the heavy hand of government burdening them with fear and anxiety.

Bill’s next idea:

4. The U.S. may sell off $16.8 trillion of its estimated $200 trillion of assets (oil leases, empty post office buildings, veterans’ hospitals, military bases) and bring the National Debt to zero, making the U.S. a creditor nation rather than a debtor nation. President Trump ordered the General Accounting Office to appraise the value of U.S. assets and came up with that $200 trillion figure.  Then the $574 billion in interest paid on the National Debt would vanish, the largest tax cut in history.

This would be a big step in the right direction for our very dysfunctional government. I would add to this list a huge amount of federal land especially in the western states and Alaska that could be sold!

The nation’s global military force is another huge pile of assets that could easily be liquidated in a strategic way more than 50% without threatening the domestic security at all.

I will skip a few more of Bill’s list and end on this note:

7. The era of doctoring is over. Many doctors have suddenly retired.  Hospitals are closing.  High-cost modern medicine has driven itself out of business.  Hopefully, an era of self-care may be ushered in to replace it. In the midst of an infectious disease lockdown, self-care is almost all that Americans have because they fear going to doctors’ offices and hospitals where they may acquire the dreaded COVID-19 coronavirus.

Unimaginably, the coronavirus epidemic has literally wiped out store shelves of natural remedies such as vitamins C, D and zinc.  Americans are learning to stay healthy without doctoring.  Even hospitals have now prescribed vitamins and minerals for their protocols to treat COVID-19 coronavirus in-patients.  This includes zinc lozenges.

I’ve written about the bewildered cardiologists in the U.S. who want to know where all their cardiac patients have gone.  A 30% decline in mortal heart attacks is guesstimated.  The disappearance of vitamin C pills from store shelves may be the answer as to why.  The same thing happened in 1970 when Linus Pauling published a book entitled VITAMIN C AND THE COMMON COLD.  The refusal of modern medicine to embrace preventive care is being exposed.  Will the people ever return to their doctors?

One nutraceutical, resveratrol, could replace almost all cardiac drugs as it is a blood thinner, vasodilator (widens constricted blood vessels), prevents damage to heart muscle during a heart attack, actually stimulates collateral circulation much like internal bypass surgery, and even inhibits growth of coronaviruses.  This remarkable natural remedy is shunned by modern medicine.  Maybe now it will get a second look as prevention may save the day in health care.

Childhood vaccinations have temporarily been suspended during the COVID-19 lockdown.  Now mothers are not sure about the safety of taking their children to the doctor’s office, given 30% of those affected are healthcare workers.  The vaccine model of health has become impractical.  Over 70 approved vaccines and another 240 under development.  By age 18 children receive 51-54 vaccine doses (shots or oral). There is strong evidence that vaccination induces autoimmune disorders.  How many jabs can our children tolerate?

Children’s Health Defense (CHD) reports UNVACCINATED kids are far healthier.  CHD is citing an authoritative study published at SAGE OPEN MEDICINE that reveals vaccinated children are twice as likely to experience developmental delays and ear infections and four times as likely to develop asthma compared to unvaccinated children.

It may not take long for mothers of small children to learn that zinc activates T-cells produced in the thymus gland to produce antibodies against each and every pathogen children (and adults) are exposed to.  No need for vaccines.  Instead of vaccinating against each and every disease, the thymus gland produces antibodies against all of them as a child is naturally exposed.  Zinc supplementation represents a natural alternative to vaccination, as explained at BEYONDVACCINES.com. Who would have ever thought this would happen?

This one is huge, a game-changer, as “my body, my choice” is real (unless you have another body inside you IMHO). The way forward allowing Pharma to ‘contribute’ as needed instead of controlling and manipulating the public policy and the path forward would be the healthiest for all concerned!

The bottom line is that I encourage y’all to read the article itself and consider the future in light of Bill’s thoughts in his post today on LRC.

Peace out y’all, hang in there!!! Better days are ahead even though the seas are rough today!

-SF1

Give Me Liberty, or Give Me Unemployment Checks – The “Union/Empire” Wanes

Confederate Constitution acknowledging God!

After a month away from this blog, I looked back at my last thoughts on this attempt by politics to hijack this virus scare:

Will our existing political class figure this out? Not a chance.

Will voting help? Not a chance.

The US still has the USPS and Amtrak, if they can be trusted with little things, you can safely say they can’t be trusted with MAJOR things.

This nation will have to split into many smaller republics before any of this can be addressed.

Whoever can be trusted with small things can also be trusted with big things. Whoever is dishonest in little things will be dishonest in big things too. – Luke 16:10 (Bible)

Is there any doubt by those that can critically think that our political apparatus from DC to the state’s governors and to the large (and small) city mayors are not full of want-to-be tyrants and sociopaths? When one follows the money, it gets even more immoral as the political class (BOTH sides of the so-called aisle) want to be re-elected so bad that they were all willing to place a big old pacifier in the mouths of millions of let go workers so that 65% or more would receive more weekly income than they had prior to this crisis. This is indeed immoral since to entice people to sit on their couches in their homes in time will lead to lives without any purpose. Life on the government plantation has ruined other cultures like the American Indian and the African American groups in the USA. This is how you emasculate the male population towards a purposeless life as government becomes both nanny and daddy.

But I digress. We should be in better position today to see the federal and state governments for what they really are. This “union” has been poisoned for some time. In fits and starts one can see how the federal government opted to be the “safety net”, like somehow a “neutral” entity could care for our communities and societies better than the locals could. That this safety net could extend to big business so that there was no risk in forgoing savings and instead buy back stock shares to prop up the stock prices. So whether this is individual or corporate welfare, both are immoral as one robs some people of their money and uses it to its own agenda’s purpose picking winners and losers in the marketplace as well as in towns and cities and farms across this land.

The southern states endured the reallocation of their taxed and tariff-ed economies from at least the War of 1812 up until the so-called Civil War (War Against Southern Independence). The South attempted to be “above-board” with their last ditch effort to save themselves from economic ruin by legally seceding (at first only 7 states) from this “union” (marriage). But Lincoln would not have his cash cow as a next-door free-trade zone, so he labeled it an “insurrection” and used George Washington’s illegal put down of the Whiskey Rebellion (25% tax thanks to Alexander Hamilton, so how bad was King George for wanting 3%?) as a template for saving the union.

This HAS to sound familiar right? The whole US government (in parallel to so many other governments) is trying to “save” us from Covid-19 while actually killing society and communities in the process. From 1861-1865 the “union” lost about 800,000 lives. What will the final death count be for the Covid-19 response by 2024 when the unintended consequences of good intentions has run its course with suicides, PTSD, mental health issues from the economic fallout AFTER the unemployment checks run out (now slated for 31JUL2020 but many want this extended to 31DEC2020)?

Smaller republics are the only answer that makes sense. Not existing state lines, although that would be a start, but republics that have like-minded people geographically grouped so that government reach can be minimized for liberty folks and maximized for totalitarian minded folks.

Reflecting on the course of what the southern states sailed can be very helpful. Sure they were not perfect and should have jettisoned chattel slavery at the very start (although this would have upset both white and black slaveholders) and compensating these owners with hard currency.

Consider what the Confederate government learned in the 80 years under the US Constitution.

  1. That unlike the Declaration of Independence and the Articles of Confederation which BOTH had God, our Creator, as whom we derived our natural rights from, the US Constitution written in 1787 failed to give such indication as its North Star
  2. That the US Constitution failed to protect the people from the 1798 Alien and Sedition Act that made it a crime to criticize the US Government.
  3. That the US Constitution failed to protect various regions of the land from the plundering ambitions of other region’s agenda and greed.
  4. That the US Constitution’s Supreme Court hijacked the ability of the states to determine which laws were unconstitutional.

It is the last point that is highlighted in this article from Abbeville Institite here. I do think it is the proper time to consider what real justice is these days and know how much a failure this a-political Supreme Court has been.

Although the Court would increasingly try to narrow the realm of States Rights, Madison [author of the US Constitution] denied that “the Federal judiciary” was the ultimate judge of such limits because it was the people of the states themselves who were the final authority.

It was in fact the US Government’s (called General government in those days, now labeled the Federal Government) over-reach that set-off a push back politically:

The conflict became obvious when President John Adams pushed through the 1798 Sedition Act, making it a crime to speak ill of the President or Congress. Since it was harshly enforced for some of the mildest criticisms, strict constructionists respond. Among them was future President James Madison who is known as the Father of the Constitution. He denied that the Supreme Court was the ultimate authority on States Rights. This can be seen from the 1798 Virginia and Kentucky Resolutions he helped write with Thomas Jefferson condemning the Sedition Act as unconstitutional.

Jefferson’s presidential victory in 1800 guaranteed that the 1798 Alien and Sedition Act would be eliminated, but by 1833 things were simmering again. By this stage of the republic’s life the South was losing its position as being a strong entity within this federation and saw New England culture and character make huge inroads into the federal government’s choosing of winners (railroads, canals and the steel industry) over losers in the marketplace:

Calhoun would build upon the Resolutions to formulate his nullification theory that South Carolina invoked in 1833 to nullify the 1828 Tariff of Abominations. Calhoun argued that the tariff was not uniform in terms of geographic economic impact and therefore unconstitutional. When the Federal Government crossed over constitutional lines, a state could take action as the final authority of constitutionality in its borders, not the Supreme Court. All states could only be forced to conform to such a law by passing a new amendment specifically making it constitutional.

This “one-size-fits-all” approach (sound familiar?) is a recipe for disaster, for just as all individuals are different, so too are the states.

The Supreme Court early on made a huge mistake that made it necessary to add an 11th amendment in 1795 when the US Constitution was less than ten years old:

When a 1793 Supreme Court ruling held the state of Georgia at fault in a suit brought by a South Carolina resident, Georgia denied the Court’s jurisdiction. After the adverse ruling ten other states joined Georgia to ratify a new (11th) Amendment specifying that individuals outside an applicable state could not sue that state without the state’s permission. The Amendment’s prompt ratification indicates a widespread belief that the Court was unexpectedly and quickly overstepping its authority.

Now you know why the Confederate government opted NOT to have a supreme court at least initially. Lesson learned.

Now it is our turn to learn from history and push for a government that is more commensurate to the people’s desire of liberty, freedom and self responsibility .. at least in certain geographical regions of this land we call America.

Peace out.

-SF1

Safe Place: When a Nation is Triggered in Thinking National Security is at Risk

Whether it be a nation or an empire, leaders always know that the fear card can produce unity and an excuse to utilize totalitarian measures against their own people, and the masses will love it, because the feels.

In reading about why the CIA and FBI saw threats with both JFK’s and MLK’s trajectories. Jacob Hornberger states:

Why did they target Kennedy? For the same reason they targeted all those other people for assassination — they concluded that Kennedy had become a grave threat to national security and, they believed, it was their job to eliminate threats to national security.

It has to sound familiar, especially over the past few years and the Russian threats due to Trump’s ‘friendly’ attitude to Russia (as he ramps up the sanctions, sending missiles to bases in Syria that Russian troops are based, etc.). Give me a break.

Although the article specifically attributes these actions as starting after WWII as the OSS operations were then made permanent by Truman’s creation of the CIA, the very psychological mechanism of fear has been a real thing in America since the colonial days.

It was the fear of American Indian raids that had independent and autonomous farmers in the colonies agree to pay takes to raise an army to remove those threats. It was the fear of a free trade zone in the southern United States in 1861 that prompted the northern politicians to “put down the insurrection” in a way that forever altered the US government to be highly centralized and a source of significant tyranny. Many southern states were subject to 12 years of military rule that not only wrecked the south economically, but revealed the desperate measures this totalitarian US government would take to keep itself “safe”.

By the 1890s this fear extended to the world for the US government, using the USS Maine incident in Havana harbor to make war with the failing Spanish Empire and seize lands around the world. By 1918, the progressive thought that the US was to be a power for “good” in this world, to keep the world safe made the people accept that sending millions of men overseas to die in France in WWI “worth it all”. Even Franklin Roosevelt knew that the end game of war was the only way to maintain his and his political party’s power, and used deceptive embargoes and tariffs to manipulate the Japanese Empire to lash out predictably allowing the US to enter WWII.

It was after this war that included the US immorally using nuclear bombs against primarily civilian populations that had little strategic military value that the US added yet another immoral weapon in their suite of tools to keep the world safe for democracy. Assassination. How totalitarian, how Communist!

The US using tactics that their “evil” enemies use are ever apparent these days when it can be argued that the US is the largest exporter of terrorism in the 21st century. It is no accident that securing the largest opium producing area in the world to secretly fund the CIA might be what keeps the politicians in line, with drug money ..

But I digress.

I guess the point of all this is to show how the US has developed into the very totalitarian state that it was fighting against in WWII. In Jacob’s article it points out that the way the nation/empire fights abroad always comes home. The domestic “fight” to retain power will start to use tactics that were only used in “war” or in classified CIA operations:

State-sponsored assassinations to protect national security were among the dark-side practices that began to be utilized after the federal government was converted into a national-security state. As early as 1953, the CIA was developing a formal assassination manual that trained its agents in the art of assassination and, equally important, in the art of concealing the CIA’s role in state-sponsored assassinations.

In 1954, the CIA targeted the democratically elected president of Guatemala for assassination because he was reaching out to Russia in a spirt of peace, friendship, and mutual co-existence. In 1960-61, the CIA conspired to assassinate Patrice Lumumba, the head of the Congo because he was perceived to be a threat to U.S. national security.

So inside of a decade, the CIA developed the tools that the FBI could assist them with in these domestic threats ..

After the Cuban Missile Crisis, Kennedy achieved a breakthrough that enabled him to recognize that the Cold War was just one great big racket for the national-security establishment and its army of “defense” contractors and sub-contractors.

That’s when JFK announced an end to the Cold War and began reaching out to the Soviets and the Cubans in a spirit of peace, friendship, and mutual coexistence. Kennedy’s Peace Speech at American University on June 10, 1963, where he announced his intent to end the Cold War and normalize relations with the communist world, sealed President Kennedy’s fate.

This deep state action over 50 years ago has served to keep a reign on US presidents ever since. This also was extended to other leaders that threatened the deep state:

… one day after his Peace Speech at American University, Kennedy delivered a major televised address to the nation defending the civil rights movement, the movement that King was leading.

What better proof of a threat to national security than that — reaching out to the communist world in peace and friendship and then, one day later, defending a movement that the U.S. national-security establishment was convinced was a spearhead for the communist takeover of the United States?

You now know why US media is the lapdog for deep state propaganda, to keep the narrative alive that the US is perpetually fighting terror and fighting to keep itself and the world safe while the US government has developed a ..:

… totalitarian-like governmental structure that has led our nation in the direction of state-sponsored assassinations, torture, invasions, occupations, wars of aggression, coups, alliances with dictatorial regimes, sanctions, embargoes, regime-change operations, and massive death, suffering, and destruction, not to mention the loss of liberty and privacy here at home.

No one should be surprised here in 2020 when we can see clearly how things are done, especially with Soleimani’s assassination.

The US has evolved into the very thing it was created to avoid.

The illusion of safety remains, but the reality of despotism is already here.

-SF1

Trajectory of the State: What Happens When Statists Overplay their Hand?

It has been a good run for state worshipers. The 1800s gave more and more people the belief that the state could bring about a good utopia for all to enjoy. (Outside those who saw peril in the state, like those in the most southern seven US states in the “deep south” in 1860 and 1861)

By the end of the 1800s it seemed that the progressive movement was about to birth and bring about a century of peace. However, WWI and WWI PLUS all the genocides of the 20th century meant millions died during as well as outside of official wars.

By the end of the 20th century we saw two collectivist Communist states morph in various ways towards entities that pay more attention to well-being of the taxpayers. Russia emerged out of a God-less era to embrace family and Christianity in the 20th century. China backed off on the underground Church (that was thriving under persecution) to a degree where this is tolerated in this Communism version 2.X coupled with quite a capitalist friendly environment where regulations are minimized that allow entrepreneurship to thrive. While these states are not perfect, it does appear they have learned the lessons of the 20th century.

This brings us to the US state complex that is exceptional enough that it still believes there are no lessons to learn. However, if Lew Rockwell’s post “Working Around Leviathan” predictions are true, their days are numbered as they get less and less relevant in society as technology advances so much faster than the state can digest it.

Lew does a great job at balancing the forces at work in 2020, where he compares the US state apparatus:

Never before has a government in human history owned more weapons of mass destruction, looted as much wealth from a country, or assumed unto itself the power to regulate the minutiae of daily life as much as this one. By comparison to the overgrown behemoth in Washington, with its printing press to crank out money for the world and its annual $2.2 trillion dollars in largesse to toss at adoring crowds, even communist states were powerless paupers.

.. to the private commercial/business side:

At the same time — and here is the paradox — the United States is overall the wealthiest society in the history of the world. The World Bank lists Luxembourg, Switzerland, and Norway as competitive in this regard, but the statistics don’t take into account the challenges to mass wealth that exist in the US relative to small, homogenous states such as its closest competitors. In the United States, more people from more classes and geographic regions have access to more goods and services at prices they can afford, and possess the disposable income and access to credit to put them to use, than any other time in history. Truly we live in the age of extreme abundance.

Some will claim it is the government’s role that has made especially large corporations most successful and should receive credit for all they do. However, Lew is quick to point out a disclaimer to that effect, but not before sharing what both the so-called “right” and so-called “left” tend to think:

It seems that people on the right and left are quick to confuse correlation with causation. They believe that the US is wealthy because the government is big and expansive. This error is probably the most common of all errors in political economy. It is just assumed that buildings are safe because of building codes, that stock markets are not dens of thieves because of the SEC (Securities and Exchange Commission), that the elderly don’t starve and die because of Social Security, and so on, all the way to concluding that we should credit big government for American wealth.

I do hope you chuckled as you read this. Only those in DC would take this seriously, most of the rest of us recognize sarcasm.

If we are looking for those that create value and wealth, do we think of government? Does on think of Obamacare, Amtrak or the United States Postal Service?

Government is not productive. It has no wealth of its own. All it acquires it must take from the private sector. You might believe that it is necessary and you might believe it does great good, but we must grant that it does not have the ability to produce wealth in the way the market does.

If you understand economics, or if you have ever spent time in a monopoly, you will find that they do not have any good feedback loop that helps them indicate what the market needs. Government is even more handicapped since no one in their bureaucracy is ever accountable for government action or inaction. They simply have no skin in the game and do not see the taxpayers as customers:

Economic law limits what the state can do. The state cannot raise wages for everyone. It cannot dampen prices that want to rise without causing shortages, or increase prices that want to fall without causing surpluses. It cannot predict the course of markets or human events. It can control surprisingly few forces that work in the world.

In all its central planning, government is forever declaring the major combat operations are over, whether in foreign or domestic policy, only to discover that its real struggles and battles last and last. A good example is in the area of foreign trade. If a good or service is more efficiently produced abroad, the logic of the market will reassign production patterns until they conform. An attempt to protect domestic industry can do nothing to change this reality. Instead, protection only increases prices for consumers, subsidizes inefficient firms, and brings about ever-increasing amounts of wasted time, work, and resources.

On the other hand are those that seek to truly bring value to the market and are rewarded with wealth that can be placed into capital improvements that can make the business even more productive, efficient and even adaptable to the changing market. This was seen by the 1700 and 1800 farmers all the way to the manufacturers of the 1800s that could accomplish this all without government involvement.

Lasting prosperity can only come about through human effort in the framework of a market economy that allows people to cooperate to their mutual advantage, innovate and invest in an environment of freedom, retain earnings as private property, and save generation to generation without fear of having estates looted through taxation and inflation. This is the source of wealth. This is the means by which a rising population is fed, clothed, and housed. This is the method by which even the poorest country can become rich.

I will only add one more quote and if you are interested, please read all of Lew’s words that at least to me, give hope for the generations to come:

But here I would like to concentrate on what I think is an explanation that is too often overlooked. It requires that we understand something about the extraordinary capacity of the human mind to overcome obstacles put in its path. In all the history of states and the history of reflection on social organization and economics, this component is the most underestimated because it is the least predictable and the most difficult to comprehend. Human beings are creative and determined, and, if they have a love of liberty, and cooperate through exchange, they can overcome seemingly impassable obstacles.

It is because of this power of human ingenuity and determination to improve the world around us, despite the state, that a vast gulf has come to separate the accumulated power of the nation-state from its effective power in the management and guidance of society and the world economy.

Yes, despite the state, human ingenuity can improve the world, as well as its parallel, despite religion, humans with God’s help and hope, can improve the world in loving those around them.

Praying that the future does see the archaic state fall by the wayside and that grassroots communities with free trade on a global basis can improve the lives of those all over the world.

One can dream can’t they?

Acts 2:17

Your sons and your daughters will prophesy, your young men will see visions, and your old men will dream dreams.

-SF1

When the Honeymoon is Over: Is the First Fight Always About Money?

One of the most ridiculous claims I have ever heard is that the South left the North over slavery. Anyone with a thinking mind should have done their research and realize that when the media/government spins a yarn so very hard and for over a century, it is probably false.

In reading a 1960s well documented book by Murray Rothbard called “Conceived in Liberty, Volume 5: The New Republic”, it becomes apparent that the new “marriage” of several colonial regions in America had some high hopes and dreams that were quickly dashed with some harsh realities. Promises made or implied give away to a selfish attitude that neatly translates for the North into some more economic bondage for the South.

This core resentment and distrust would eventually be the key reason why the South (as of 04MAR1861, just the seven states of the deep south) did not flinch when Lincoln promised them LEGAL and PERMANENT slavery of blacks IF they would simply re-enter the Union. By this time the South was tired of the abusive relationship the North treated them with and it was apparent that as of NOV1860 that the North could elect a president without ANY Southern support or votes spoke volumes.

As the American Revolution ended in 1783 with the Treaty of Paris, the engagement of the thirteen colonies signed 04JUL1776 with the Declaration of Independence led to the creation of the wedding vows on 15NOV1777 followed by the commencement of the marriage on 01MAR1781. Note that the language of the vows talks of a perpetual union, however, by the time a constitutional convention was called in 1787, these original vows were discarded for a new set (the United States Constitution) that “promised” a better relationship. In hindsight, it was all downhill from that point forward.

With the end of the war-period in which these thirteen colonies fought together, but with a wide range of sacrifice, it was time to settle all the debt incurred during this period. It is in this period that some significant character flaws started to make themselves known that should have been red-flags, especially for the South, to anticipate what a continued relationship might look like and if the North could be trusted in the long-term.

Murray Rothbard shares a summary:

“A key to the politico-economic problems of the Confederation period, as well as one of the leading arguments for centralized power, was the swollen corpus of war-born public debt. The mass of federal and state debt could have depreciated and passed out of existence by the end of the war, but the process was stopped by Robert Morris. Morris and the nationalists moved to make the depreciated federal debt ultimately redeemable at par, and also agitated for federal assumption of the states’ debts. This was done to benefit speculators who purchased the public debt at depreciated values and to force a drive for a national taxing power ..”

To have a “spouse” like that to hijack the relationship towards a future that philosophically was repulsive to the independent minded Southern colonies, in effect, USING the South for it’s economic engine (which at that time was much more healthy than the North, this in spite of the major conflicts that occurred in the South during the last 1/2 of the war).

As a result of the nationalists’ efforts to assume the public debt, the value of the public debt, in specie, increased from $11 million in 1780 to $27 million in 1783, the vast bulk of which was held in the northern states. While scrambling to assume some of the debt themselves, the states had also amassed a huge burden of their own debt. Thus, by the end of the war, Massachusetts’ total debt was nearly £1.5 million; Rhode Island, about $0.5 million; Connecticut, over $3.75 million; Pennsylvania, over £4.6 million; Virginia’s over £4.25 million. As a result, payment of interest on the debt amounted to an overwhelming proportion of the state budget, and one estimate is that 50–90 percent of state expenditures went for this purpose ..

Not cool. The elites looked to benefiting themselves and placing the common folk on the hook for all the taxes needed not just to satisfy the interest payments on the debt, but to eventually pay off all the American Revolutionary War debt,

One problem that bitterly divided the states during the Confederation period was the settlement of common accounts. Under the Articles, expenses made by the several states for causes common to them all would be lumped together as “common charges” and the charges paid proportionately by the various states. In short, “debtor” states would pay their share to claimant “creditor” states through Congress and thus settle their accounts. Wartime expenses were clearly a common charge for the general welfare, and therefore those states which had expended more in the war effort (notably the southern states, because of the nature of the last few years of the war) were entitled to payment from the others. Logically, the public debt incurred by Congress should also have been assumed pro rata by the separate states, but the nationalists’ fierce determination to amass and retain a federal debt was able to keep that debt a federal rather than a “common” charge.

Talk about a bait and switch. So the vows that were agreed to in 1781 were just words on paper and the actions after the war’s end were highly dishonorable in regards to the nationalist’s agenda:

Throughout the 1780s the southern states tried to obtain their just settlements, but the northern states faithlessly fell back on technicalities, lack of official vouchers and authorization, etc., to keep the southern states from their just due. Also the South in particular had gone much further than other states in assuming unliquidated federal debt during the war (e.g., Quartermaster and Commissary certificates) and had exchanged them for state debts, only to find Congress (i.e., the North) balking about accepting these federal certificates as evidence for expenditures in the common welfare. Again, the North was depriving the South of their just due.

It should be noted that many Southern militia members never got the pensions deserved and yet so many New Englanders who never fought a battle received the same pension. Basically, the Yankee’s word meant nothing, and this was only the beginning:

As the dispute dragged on during the decade with the southern states unable to redeem their claims, Robert Morris’ wily “solution” proposed in 1783 began to look better to all concerned. An ultra-nationalist’s dream, the proposal was to accept all southern claims without cavil, but not to be paid by the debtor states: to be assumed by the federal government, which would issue federal securities for all claims. In short, the federal government would assume all war-born state debts. The tax-and-debt burdens of the states were, of course, aggravated when the depression of 1784 hit the country, for now a fixed sum of taxes and debt payments had to be exacted from a depressed economy in which prices were generally lower and therefore the real tax burden greater. One critical problem was whether the debt would be paid at its depreciated market value, which at least reflected current economic realities, or whether the state would insist on paying them at their far greater face value, and thus impose an enormously greater tax burden upon the people. The anger of people at paying debt charges was considerably aggravated by the fact that the bulk of this debt had passed from its original owners at highly depreciated amounts into the hands of speculators. Payment of face value, then, would not even benefit the original public creditors; in fact, they too would suffer from being taxed for the benefit of a windfall to a comparative handful of speculators in the public debt.

The way two former colonies would handle this situation showed the difference in character between the regions, which to me meant that they were not compatible for a “tight” marriage but might work in a loose “federation”. Unfortunately, the actions in 1787 with the new “vows” (the US Constitution, coup d’tat) would make this marriage so tight that it could only become abusive in the long haul.

Virginia showed honorable character:

Virginia was sensible enough to pay much of the debt at its depreciated market value, and make its taxes to pay the debt payable in depreciated certificates. Hence, Virginia was able to reduce its debt rapidly and without imposing enormous burdens on its taxpayers .. Numerous county petitions in Virginia pleaded the impossibility of paying taxes, a condition aggravated by the low price of tobacco in the mid-1780s. The Virginia legislature reacted sagely to the protests .. and agreed to lower or suspend taxes, and to allow hemp-growing western farmers to pay their taxes in hemp or flour. Indeed, Virginia agreed, in the spring of 1784, to suspend all tax collections for six months, and then agreed to cut taxes in half for the year 1785.

Massachusetts not so much:

Massachusetts, on the other hand, so handled its debt during the war as to benefit its debt holders and speculators, consolidating its debt by 1784 at twice its market value. To pay this particularly large debt, Massachusetts levied enormous taxes and insisted on collecting them in specie. This is not surprising, since the Massachusetts government was basically run by the very groups that owned the great mass of state debt. The debt burden was borne particularly by the poor, since roughly 33 to 40 percent of Massachusetts’ state revenue was raised by poll taxes, which were equal for each citizen. As a result, it is estimated that at least a third of a Massachusetts farmer’s income after 1780 was extracted from him in taxes, and in specie at that. Farmers and the poor demanded that the state debt at least be scaled down to market value, but the conservative ruling groups angrily refused. Typical of the eastern mercantile oppression over the mass of citizens and farmers was the imposition of excise taxes, which harmed the bulk of consumers. Thus, the tax on spirits (e.g., cider brandy) distilled from one’s own apple orchard was twice the level of the tax on New England rum: a clear privilege to the Boston and other eastern merchants over the western farmers. Tax oppression upon the Massachusetts people was enormous, and the courts ruthlessly threw those who could not pay into jail. Tax defaulters’ property was seized, but in the time-honored way of neighborhood solidarity, local mobs prevented anyone but the owner from bidding for the property.

The rifts were real and would be aggravated over time.  These events should have given caution to the southern states by the late 1780s that had the nationalists accelerate their efforts to centralize the US general government and create a central bank. It seems the longer the South stayed with the North the more the North sensed that it OWNED the South, as a slave and not respected her as a spouse.

Hindsight is indeed 20/20 .. but learning these things from real history is priceless!

-SF1