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Meltdown Live-Blog Chapter 1

  • Chapter 1

 

Thomas Woods starts off his new book by mentioning the supposed reason for our economic ills that is endlessly squawked by the economically ignorant/misinformed parrot like repeaters of our society:

 

‘The free-market economy has failed! The free-market economy has failed!’

 

            (Polly want a Federal Reserve Note?)

 

It is difficult to think of a statement that could cause a greater feeling of annoyance and absurdity among frequent visitors of mises.org, but just for fun, I will try. Perhaps “The Federal Reserve fights inflation”? Better yet, how about when one of the gang of 534 in D.C. – I think you all know who the exception is – somehow say with a straight face, “I do solemnly swear that I will support and defend the Constitution of the United States against all enemies, foreign and domestic”?

How can something that doesn’t exist fail? (In a related story, my starship, the U.S.S. Free Enterprise, failed to go to warp speed earlier today. L ) After all, a truly free market, free of ALL government intervention in the economy has never existed in recorded history; although Murray Rothbard’s For a New Liberty shows how it could work. Those who think that “the free-market economy has failed” would do well to realize that a truly free market is one that is free from government intervention – which includes: borrowing, spending, taxation, inflation, protectionism, price/wage controls, regulation, etc.

Jacob G. Hornberger expressed this well in a recent article: “America was founded on the principles of a free market. What "free market" meant was that market activity was free from government control. That is, "free market" didn't mean less government control or regulation of market activity, it meant free of government control or regulation.”

But the same old so-called solution for “getting the economy going again” is more government intervention and control of the economy. Yet these…oh, how shall I describe the politicians in the District of Criminals…Ah! I know! A funny bit by the brilliant Bill Hicks describing pro-lifers - talk about pessimism porn – fits the Demopublicans perfectly:

 

"Some people say these pro-lifers are annoying idiots. Others think they're evil f**ks. People – please!? Can't we just come together and call them evil annoying idiot f**ks?"

 

            As I was saying – yet, these evil annoying idiot f**ks in D.C. continue the same deceitful, immoral, and harmful policies that, if not stopped soon, will completely destroy the purchasing power of the dollar and the entire economy along with it. I am hopeful though, that if and when that does happen, Americans will realize that this whole mess was caused by government and not capitalism. I am confident it will be realized that the less government interferes in the economy the more people are able to produce and trade freely.

The federal government is so utterly horrible at everything it attempts to do. So much so that I think it has made a great case for the state-less society that Rothbard envisioned. Not to mention the fact that they have done such a good job at bankrupting us that steps in the Rothbardian direction may have to be taken out of necessity. My biggest desire is that I live to see the day where a truly free (i.e. pure libertarian/anarcho-capitalist) country is established. My second biggest desire is to have enough fiat currency left at the time to buy my ass a one way ticket there. (Unless it turns out being in America; in that case I will save the money to buy that as of now non-existent starship.)

Mr. Woods doesn’t waste any time destroying the attempted intellectual assault by the numerous anti-capitalistic forces, noting how the current economic crisis was directly caused by government intervention. Best of all, he doesn’t waste any time getting to the underlying cause, the Federal Reserve System.

I like to make the following point to people who support anti-trust laws because of supposed “monopolies”. Every sane person will agree that a true monopoly is bad. After coming to an agreement with someone about that, I ask what they think the most dangerous and destructive (true) monopoly possible could be; the answer, of course, is the unjust monopoly of the money supply currently held by the Federal Reserve. It is truly a tragedy that so few people are aware of the Fed, its control of the money supply and interest rates and how the many bubbles that ensue must inevitably burst.

The great majority of people were against the bailouts of last fall, but of course that did not stop Congress. The ignorance and corruption in Congress disregarded the following would-be obstacles in passing the bailout.

  • The Constitution. (I know, I know…Tell you something you don’t know)
  • Their intended role as representatives not of special interests, but of their constituents – and to truly represent the wishes of their constituents, not to vote contrarily for any reason other than unconstitutionality. In that case they should attempt to amend the constitution.
  • What was supposed to be our economic system – free-market capitalism with sound money.
  • What should be common sense; there is nothing right or beneficial about stealing successful people’s money to prop up people who fail. Let them go bankrupt so the scarce resources in their possession can be put to better and more efficient use.
  • Hehe...I almost said morality. But as the great Jim Rogers says, “Politicians don’t care about morality.”

 

I had HOPE that soon after Obama was inaugurated and proceeded to CHANGE approximately 3% of Bush’s policies that people would wake up and realize he is just more of the same. It looks like people aren’t ready to admit that quite yet, thanks to ignorance fueled by:

·        What passes as a free press in this country - According to Reporters without Borders, the U.S. is ranked in 53rd place regarding press freedom – tying with such countries as Botswana and Croatia.  

And most importantly,

·        “The deliberate dumbing down of America” – as Charlotte Iserbyt calls it in her FREE book of the same name – through the public school system.

The public schools have indoctrinated children into thinking that government is a force for good and that capitalism is a force of evil. A link to a study I got in my email recently demonstrates this:

US:Poll shows only 53% favor capitalism over socialism - but few can define either one. For decades America has been a socialist (collectivist) country calling itself capitalist. Citizens have no understanding of ideology. 'If you don't believe in something, you will fall for anything.'

(On a side note, I got the link through Unfiltered News, compiled by G. Edward Griffin, author of The Creature from Jekyll Island. You can subscribe to receive it in your email for free weekly here.

As Mr. Woods says, “We cannot expect the situation to improve until we understand how we got here.” This is indeed true. The most important things that the public needs to come to understand are that free-market capitalism is a force for good, not evil, and that the Federal Reserve System is antithetical to free-market capitalism. Also, people must remember that government is inherently evil. As George Washington said, “Government is not reason; it is not eloquent; it is force. Like fire, it is a dangerous servant and a fearful master."  One way I am trying to get this into the public consciousness is by distributing Campaign for Liberty pamphlets and End the Fed DVDs. I am in the process of burning a ton of copies to hand out at one of the End the Fed protests on 4/25/09. For now, and while we still can, it is imperative that all of us do what we can to get this information to the masses so that when the time comes, people are better informed to change our political and economic system in the Rothbardian direction.

Comments

George Smith said:

The Fed ("We control inflation and print money") are the good cop in the good cop/bad cop scheme run by congress.

Congress threatens to spend/print too much and the Fed is the restraining influence (and does the direct printing).

Congress created the Fed and if enough of Congress agreed they could uncreate them. However, for now, Congress is too interested in spending money they don't have and will do anything to avoid having to end their spending.

So "killing the Fed" won't help (and anyway isn't likely until the dollar is dead).

# April 17, 2009 1:13 PM

Joseph Emerson Brown said:

Thanks for reading and commenting! I would say that it is a bad cop/bad cop scheme. I almost said bad cop/worse cop, but I can't easily decide which one is worse. If the Fed is supposed to be the restraining influence, what a great job they've done huh? I don't even want to imagine what it would be like if Congress was unrestrained.

I agree that the Congress is either too ignorant of/addicted to the easy spending money that the Fed gives them access to.

You're right, we probably won't get rid of the Fed until the dollar collapses; however, I think it is possible that we can still avoid that. The most realistic and optimistic scenario I can see is that the Fed is audited through HR 1207, leading to the repeal of the legal tender laws. This wouldn't kill the fed immediately, which is good - that would be too chaotic.

# April 17, 2009 2:26 PM

Les said:

Perhaps a best solution would be to end the federal government. Now that would be "revolutionary".  

# April 17, 2009 8:03 PM

Tom said:

I would rather we be asking the question of what will it take and how to we start to put through our political system the changes necessary to remove the Fed and restore the dollar to a commodity backed (gold) currency?

Something to the effect of End the Fed.  But it gets tricky when you look at Gold Standards and doing business with other nations.  I guess we can all trade in gold between borders.

I don't know if it requires a Constitutional Amendment, I hope not, but there's a lot of energy to get something done.  Why not help direct/educate towards a short, concise and simple objective.

# April 18, 2009 7:46 PM

Ralph Fucetola JD said:

Ron Paul showed us the way in the 1970s with the relegalization of private ownership of gold - just in time for the substantial growth in wealth that is now being looted through the "bail out" con. He's introduced a bill to repeal the unlawful legal tender laws. And, of course, HR 1207 to audit the Fed.

The simple plan is to return to Constitutional Money. It is well worth the time to recall how it all happened.

At the end of the Revolutions one of the great lessons the people learned was to reject fiat money ("not worth a Continental").

When the Constitutional Convention met the draft Constitution had, in Art. 1, Sec. 8, among the powers of Congress, the power to declare legal tender. That clause was deleted from the Constitution. Instead, three clauses were included to govern money. First that Congress had power to coin money (no express monopoly was granted). Second, Congress could "emit no bills" which means, issue fiat money. Third, no State could make anything but gold and silver ".legal tender."

Those Constitutional provisions have never been amended.

During the War to Extend Federal Power, the Union govt issued the first "legal tender" greenback fiat money. After the War, various law suits were started, known as the "Legal Tender Cases." The Supreme Court rightly held that Congress had no power to declare legal tender for "all debts public and private."  While the Federal govt had to accept its paper for obligations to it, it could not force private persons to use its paper.

The rump Congress (with a third of the country under marital law) enlarged the Supreme Court. Bankster clones were appointed to the new seats. The Court "reheard" the Legal Tender Cases and discovered "inherent power" in Congress to declare legal tender.

Whenever the Supreme Court makes a decision finding "inherent power" that means there is no Constitutional Right. Such Court decisions are nothing more than usurpations of the Constitution and are not valid precedence.

Led by Dr. Paul, it is time to return to Constitutional Money. Nothing less will save the Republic.

# April 18, 2009 9:24 PM