Reflecting on the “progress” of man towards ordering things in this world, it is of no surprise to me the thought of “bigger is better”. Even reflecting on the rise of the Hebrew people from nomads to being slaves in Egypt, and from there to the “Promised Land” west of the Jordan River and then being ruled by judges and eventually a king, you can see this is a very human trait.
The transition toward wanting a king is not something that the Hebrew’s God wanted for them, but it was allowed, with a warning. You see, earthly kings have kingdoms, which inherently need resources, taxes and young men to supply military might for both defense and offense operations. The list goes on and on as to the drain on society, communities and families to support a kingdom let alone an empire.
I think too of the struggle in the late 1700s when American colonists, while appreciating what the British Empire had done to facilitate their ability to immigrate to such a place as America, and supplied protection from those native to this land, they had however, grown resentful at the way their “parents” were treating them, almost like there was an expectation of independence not unlike what happens to humans when the are in their mid to late teens! In this case, many if not most did not want a king after kicking out the British, but some painted the road ahead with fear so as to make many desire the safety that a king, a central state, can supply.
In both of these situations, you have a taxing authority promising protection. As Hans-Hermann Hoppe points out:
A tax-funded protection agency is a contradiction in terms and will lead to ever more taxes and less protection.
One only has to look around today to see the end result of the belief that the state could be counted on to provide safety while taxing its citizens for that safety. Not only do we see the US Empire drone bombing “terrorists” (their claim is that every death is indeed a terrorist death), but also promoting regime change in countries around the globe that have nothing to do with keeping Americans safe. From the lies that launched the invasion of Iraq to the lies that led to epic cultural destruction in Libya, attempted destruction in Syria and desired destruction in Venezuela and Iran, the empire seems determined to start a war with someone. Trade wars and sanctions with Russia and China also indicate that the US Empire is itching for a fight.
But why?
Unknown to most Americans is the fact that a series of macro-economic shifts have happened over the course of this nation’s life that seem to be at the core of the angst this country’s leaders and elites feel at this time.
Remember the phrase “follow the money”? Well, it is pretty prophetic that not only did the Bible both in the Old and New Testament state that the love of money is the root of all evil, but that an inherent distrust of our provision and safety in our Creator fuels this. If there is any entity that is the furthest from God is that of the state. The state is actually the antithesis of a loving father, it is force at its core and “war is the health of the state” – ( Randolph Bourne) is its motto.
Today’s Lew Rockwell site provides a writer by the name of L. Reichard White who is willing to identify the “whys” of this latest round of desired wars. I hope to follow up with a series of posts that go back through history and link America’s coups and wars to show how each one was premised on a lie and historically have been altered to show that these were moral victories for the state when in fact:
The sheer number of people killed by states in the twentieth century—up to 100 million, with more killed in peacetime “social reconstruction” than in wars—makes one suspect that state-provided security is extremely expensive in all respects and that meaningful alternatives have been overlooked.
So on to today’s revelation about the ways of the state and the root issue we are facing here in the 21st century, the constant wars and then some thoughts towards future alternatives.
After walking through some of the most recent “crazy” the the US Empire’s foreign policy seems to have taken since 9/11 and even before, the author states:
With all these U.S. Government interventions, at least 198 of them remember — and sanctions — it’s tempting to conclude there is no rational reason and “we” screw with other folks purely on whim, whimsey, and maybe as a hobby.
But sometimes, maybe there’s a method to this madness. And if so, it often does involve oil, just not quite the way most left-coasters think.
Oil, seems to be a common denominator. But if so, why didn’t the US occupy Libya and keep the oil? Why didn’t the US occupy Iraq and keep the oil? It just doesn’t add up. The author continues:
… because of a 1974 agreement cobbled together by the Nixon administration between the U.S. and Saudis, nearly all oil trade in the world ended up requiring U.S. dollars…
Understand that pre-1974, the US primarily used a central bank to fund its wars across the globe, and unlike your history book says, WWI (joined by the US only a few years after establishing a central bank) and WWII were not actually started by Germany, it has been only covered up that way by “Fake History” (a cousin to “Fake News”)
With a national debt of over $22T these days and over $200T of unfunded liabilities, the US government wants to stabilize and control the future, but the railroad tracks are leading to a gorge that has no bridge yet.
Not coincidentally, this [1974 action] was just three years after Nixon, attempting to finish replacing the gold standard with the U.S. paper-dollar standard, closed the gold window and thus threatened to throw the world economy into chaos. This explains a lot more than most folks realize.
Remember the “petro dollar?” Well, thanks to the Saudi/U.S. established oil-for-dollars tradition, the Brits, Germans, Japanese — in fact just about everyone — had to keep dollars on hand to pay for their oil imports.
And the oil sellers also ended up with a lot of dollars. And so did the countries they bought stuff from. And the dollar tradition spread to trade in other commodities as well. That meant that a large aggregate of U.S. dollars stayed overseas and didn’t return to the U.S.
Econ 301 is needed to understand what this means. Mr White does a good job:
Experts estimate that “majority of cash … outside the United States” is as much as 80% of the U.S. dollars in circulation. All that money overseas has a lot to do with the fact that everyone has to pay for oil, etc., with dollars.
As Case Sprenkle of the University of Illinois puts it, “Insofar as the money remains abroad and is not used to purchase goods or services from the country that printed it, it serves as an interest-free loan from poor countries to the rich.”
That’s mostly how Uncle Sam is able to run-up such huge budget deficits without causing inflation.
At this point, it will become clear to any student of history, that the actions of the US Empire since the 1953 assassination of the democratically elected president of Iran after he threatened to nationalize his nation’s oil to the most recent effort by Venezuela, sanctions, intervention, regime change and if necessary, outright war itself are the only tools the US Empire has at this point of time to get out of the hole it dug itself.
… what happens if people overseas stop using the dollar — and discover the only place they can spend it now is back here in the good ole’ U.S. of A.?
What would happen if the Saudi Arabians said they didn’t want to be paid [for oil] in dollars anymore, but wanted instead, to be paid, say in yen. There would be inflation that would make the 15 to 20 percent inflation in the early 80’s look good. —Sen. Pete Domenici, R-NEW MEXICO, C-SPAN II, 18 May 1995 ~12:33:55 PM
Unfortunately, selling oil for something other than U.S. dollars isn’t the only thing threatening the paper-standard. It’s also become the norm for governments and central banks to stockpile U.S. Treasuries to support their own currencies.
So, if a country reduces its stock-pile of U.S. Treasuries, either by selling them off or no longer rolling them over when they reach maturity — and replaces them with something else, as in the past, gold perhaps — this also threatens the U.S. dollar paper-standard.
The problem is, the paper-standard is mostly psychological. It’s literally a con — that is, confidence — game and when the confidence evaporates, game over.
And it’s very difficult to enforce confidence, no matter how many aircraft carriers, etc. you deploy. Or to predict when the confidence will implode.
Confidence is already waning on the USD Petro Dollar’s use, we know that North Korea does not participate, neither does Cuba, but lately, Venezuela, Iran, Russia and even Saudi Arabia favor de-dollarization in the oil markets, and this is huge:
I agree with Mr. White when he says:
Could that threat [Saudi Arabia’s look at USD de-dollarization] be why Mr. Trump vetoed Congress’ first attempt in 70 years to control unconstitutional U.S. war involvement by ending support for the Saudi-led murder of the men, women and children in Yemen?
What a tangled web an empire weaves. In desperation, the empire struggles to stay relevant and keep the bubble economic facade intact. Gold-based currency was a more honest way to run a nation, but quick money seems to be the way empires go.
.. killing more men, women and children is a classic result of the the paper-standard. As Ferdinand Lips explains so well, compared to the gold standard, the paper-standard makes financing wars easy and so they happen more often, are longer, stronger, and kill more innocent men, women and children.
As some folks like to put it, “The U.S. dollar used to be supported by gold, now it’s supported by aircraft carriers, B-52s and killer drones.”
I think we can safely add that it’s also supported by election meddling, coup, regime change, assassination, sanctions, invasion, and fake undeclared war. Perhaps, then, a more accurate title for this piece would be “Intervention and the Paper Standard.”
Okay then, enough depressing talk, and for those who have stayed along for this journey, what, if any, antidote is there for such a huge situation?
there’s a subtle but insidious problem with the way Trump and the U.S. Deep State are chronically implementing “All options are on the table” Games Theory. Originally a U.S. invention, Games Theory is based on poker.
The problem with poker — and BTW mercantilism as well — is that, unlike voluntary exchange in unhampered markets, it’s a zero-sum game. If you’re in a game with someone who thinks they’re playing poker, someone wins and someone loses — and they intend to make sure you’re the loser.
Unhampered markets on the other hand — and other forms of normal co-operation — are, in the long run, nearly always win-win propositions. As long as they stay unhampered — and normal.
Markets, UNHAMPERED is the key. How can markets be “unhampered”? (Remember the Hebrews when their leadership was judges, wise men who provided justice in a society or community, or the American colonists that homesteaded on acres of trees and developed ways so that they could bring value to their communities out of sight of any British flag or British noble?)
The state is a cancer for so many things in our world. I believe the only saving grace might be for the average human (not just in America, but globally) to understand the state for what is actually is. The average human needs to know “the gun in the room”.
Anarchy, the absence of rulers (not natural rules), is probably the only healthy path forward. One of the best things I have see so far this year is this 52 minute interview on Jeff Berwick’s Anarchast page that supplies a double dose of reality into the reality of 2019, the consideration of both anarchy and Jesus as a possible path forward. I am not talking chaos and religion here, so it might be good to view this YouTube so you can understand both of these options without accepting them:
Anarchast About:
Anarchast is your home for Anarchy Podcasts on the internet
To us, Anarchy means freedom. The desire to live without a violent, coercive State. Anarchy is peace, love and prosperity. Free markets. And, power to the people.
Anarchist. Libertarian. Freedom fighter against mankinds two biggest enemies, the State and the Central Banks.
Jeff is the Chief Editor of The Dollar Vigilante, a newsletter focused on investments and expatriation information to survive the coming collapse of the US dollar based financial system.
Jeff is also a contributing editor at many of the world’s largest libertarian, financial and precious metals related websites including LewRockwell.com, The Daily Reckoning, Whiskey and Gunpowder, Kitco, Gold-Eagle, Safehaven.com, Market Oracle and is a speaker at many of the world’s most important hard-money investment and freedom conferences including Libertopia, the San Francisco & New York Hard Assets Show, the PDAC held in Toronto, the Silver Summit and all the Cambridge Houseconferences in Vancouver, Calgary,
So remember, money is not the root of all evil, the love of money is. If your faith is in money and/or government, you are going to have a bad day.
I hope to post more on what the future might hold as far as alternatives to the state, especially the “in your face” state that we are seeing in the USA that used to be restricted to the USSR, Communist China and East Germany for a few decades.
Enjoy your weekend y’all!
-SF1
