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ECONOMICS AND ESOTERICA FOR A NEW PARADIGM

Posts Tagged ‘Thomas Jefferson

The third president (1743 – 1826) of the United States, a man who towered above all

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“I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”
–Thomas Jefferson

“A private central bank issuing the public currency is a greater menace to the liberty of the people than a standing army.”
–Thomas Jefferson

“I do not take a single newspaper, nor read one a month, and I feel myself infinitely the happier for it.”
–Thomas Jefferson

“The man who reads nothing at all is better educated than the man who reads nothing but newspapers.”
–Thomas Jefferson

“Paper is poverty, it is only the ghost of money, and not money itself.”
–Thomas Jefferson

“The spirit of resistance to government is so valuable on certain occasions, that I wish it always to be kept alive.”
–Thomas Jefferson

“The will of the people is the only legitimate foundation of any government, and to protect its free expression should be our first object.”
–Thomas Jefferson

“It is incumbent on every generation to pay its own debts as it goes. A principle which if acted on would save one-half the wars of the world.”
–Thomas Jefferson

“A democracy is nothing more than mob rule, where fifty-one percent of the people may take away the rights of the other forty-nine.”
–Thomas Jefferson

“I have the consolation of having added nothing to my private fortune during my public service, and of retiring with hands clean as they are empty.”
–Thomas Jefferson, letter to Count Diodati, 1807

“No government ought to be without censors and where the press is free, no government ever will.”
–Thomas Jefferson, letter to George Washington, September 9, 1792

“An honest man can feel no pleasure in the exercise of power over his fellow citizens.”
–Thomas Jefferson, letter to John Melish, January 13, 1813

“Some men look at constitutions with sanctimonious reverence, and deem them like the ark of the covenant, too sacred to be touched.”
–Thomas Jefferson, Resolutions, 1803

“Experience has shown that even under the best forms of government those entrusted with power have, in time, and by slow operations, perverted it into tyranny.”
– Thomas Jefferson

” I would rather be exposed to the inconveniences attending too much liberty than to those attending too small a degree of it.”
–Thomas Jefferson, to Archibald Stuart, 1791

“No nation is permitted to live in ignorance with impunity.”
–Thomas Jefferson

Malo periculosam libertatem quam quietam servitutem. (“I prefer the tumult of liberty to the quiet of servitude”)
–Thomas Jefferson to James Madison, 30 January 1787.

Political Pygmies and Mad Hatters

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by  Nelson Hultberg
Originally posted April 20, 2011

THE DEBATE IN WASHINGTON OVER THIS YEAR’S BUDGET that threatened another (ho hum) government shutdown is a sterling example of how modern day pundits and politicians have shrunk their vision of political affairs down to the momentary, the picayune, the superficial, and the irrelevant.

Are there any “big picture thinkers” left in the political arena? Any “men of principle?” Sadly, no. Other than Ron Paul and a few maverick colleagues, there are none. Nothing but pygmies pontificating about the crucial business at hand and claiming how courageous their party is behaving in pursuit of justice and a better America.

To say this is an embarrassing charade is understatement indeed. Our government is $14.3 trillion in debt. The 2011 budget is approximately $3.8 trillion. The budget deficit is $1.5 trillion. And our solons in Washington are smugly bragging about their “fiercely negotiated cut of $37.8 billion?” Is it hyperbole to say these minds are obsessed with the momentary, the picayune, the superficial, and the irrelevant? Is it unfair to declare them to be pygmies? I think not.

When all things are considered, the total public and private debt in America is now over $100 trillion. Yet Bernanke and his Fed buddies are injecting credit (i.e., more debt) into the economy like a fire hose injects water into a bathtub. And still our “men of principle” in Congress declare with straight faces that they are stalwartly facing America’s problems head on. Sure they are. Like drug addicts and embezzlers face their life’s problems.

A Spectacle of Self-Delusion

What is horrifying is that this is not new. This charade-like aura of politics in Washington has been going on for 60 years ever since Dwight Eisenhower captured the GOP from the Robert Taft forces in 1952 and made it into a party of “me-tooers” to FDR’s Democrats. What has been taking place in the American political arena for the past six decades is one of the most blatant spectacles of self-delusion in American history.

Everyone is in on the charade – the populace, the politicians, the professors, the pundits – everyone makes believe that we have a legitimate Congress fighting for truth and justice, that we have a competitive two-party system where the Democrats wish to expand government while Republicans wish to reduce government. This charade is taught in the schools, pontificated about in the media, and argued about in the barrooms. Democrats versus Republicans. Big government advocates versus small government advocates.

It is disgusting that we as a people have become so delusional. But this is why our leaders in Washington argue over such meaningless trifles as $38 billion cuts in face of $1,500 billion deficits (which is equivalent to erecting a bamboo wall to stave off a Tsunami). Why do our leaders take part so proudly in such ludicrous debates? Because they have to perpetuate the great “two-party myth” that says the American people are being given a genuine choice about how they are to be governed. And we the people continue to buy into it like gullible rubes at a carnival. We have descended into the rabbit hole to join the Mad Hatter. Mountebanks and humbuggery saturate our politics and economics. Up is down, and down is up. Words are now tricks to twist the baneful into the tolerable. Reality is not what it is; it is what we wish it to be.

Not one in a hundred of our intelligentsia carry the cause and effect process of all this sham and destruction back to root causes. The best our mainstream media pundits can do is talk about how things started getting out of hand in the Greenspan nineties or the Reaganite eighties. Pygmies, all of them! Their sense of history extends only to a few decades, or at best the length of their own lives.

Yet the nefarious destruction descending upon our country had its beginning in 1913. That was the year that brought us the Federal Reserve and the income tax, which brought us the false boom times of the 1920s, which brought us the necessity to extinguish the inflationary fires with the Great Deflation of the 1930s, which brought us FDR’s welfare-state.

This twenty-five year period, 1913-1938, was the fateful turn in American history. Prior to this period, statism was “alien and horrid” to Americans. By the period’s end, statism was “needed and progressive.” From this momentous era, we embarked upon a journey of social, economic, and political insanity that plunges us deeper into desolation with each passing decade.

Cataclysmic collapse looms ahead, and there is no chance whatsoever that the American ship of state can be righted. We crossed the Rubicon in 1971 when Richard Nixon began the great fraud of irredeemable currency creation that John Maynard Keynes had conned our intelligentsia into believing was somehow wealth. The productive booms and easily correctible recessions of a laissez-faire market became the dangerous booms and ever more devastating recessions of the corporate state.

America is now deep into the death spiral of Rome. The only thing left to fight for is the establishment of some means to inform the American people about the coming cataclysm and what we must do to avert a World-Government as a result of its devastation – some means that can circumvent the tyrannical lock that collectivists have established over our schools, churches, media, and political parties.

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A Middle East warning: American-style democracy isn’t the answer

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by  Ron Holland
Originally posted March 12, 2011

The entire world except for government leaders and politicians are thrilled with the revolutionary spirit moving through the Middle East. The leaders of authoritarian regimes from Tunisia to Egypt have fallen and the rest are threatened in every nation in the region.

It is my hope that your brave spirit of rebellion against one party rule and foreign backed puppet governments will provide encouragement to people around the world to stand up and follow your example showing how your fear of government tyranny is over.

Most governments ultimately rule and generate tax revenue by threat and force of arms and the only difference is the degree of violence and police state actions. While here in the West, we join you in solidarity for freedom and representative government, please understand that our history over the last 100 years clearly shows how democracy isn’t the panacea claimed by most establishment politicians. Thomas Jefferson described democracy as nothing more than “mob rule, where fifty-one percent of the people may take away the rights of the other forty-nine”. Trust me, democracy can be just as bad and often less efficient than authoritarian dictators, fake monarchs and military rule.

Anthony Wile, chief editor of The Daily Bell has explained the problems of American, democracy better than anyone I know in his Middle East interview Wednesday on Russia Today (RT) which broadcasts in English to over 100 nations around the world.

US-style regulatory democracy is a government-intensive approach that seeks to regulate almost every facet of human behavior and uses concerns for people’s “safety” as a justification for tremendous authoritarianism at home, and I might add for our Middle East friends, a neocon military policy of aggression, occupation and natural resource control abroad.

The representative features of democracy also have major flaws because this model allows powerful domestic special interests at home or foreign power elites to easily buy off a majority of parliament members and control the government and monetary policies of the nation state. Just as your dictators or monarchies have been controlled by Western interests allowing the pillaging of your natural resources, it is a very simple matter to buy majority control of representatives who should be representing the citizens but instead sell their souls to outside interests.

The worst problem with US-style democracy is the illusion that individuals or voters have power or control over the government. Yes, you get to vote and protest which on the surface might appear an improvement over a government structure controlled by a few at the top but this brings up the fatal weakness of regulatory and representative democracy as is practiced in Europe and the West today.

In order to create the illusion of benefits to voters, these democracies have to borrow massive amounts of money to buy votes and benefits today and most of the burdensome costs are placed on future generations. Therefore sovereign-debt-financed democracy can only exist as long as investors are willing to purchase the treasury debt obligations to finance this kind of welfare/warfare state. Heavily indebted Europe and America are now rapidly reaching the end of this fatal debt Ponzi scheme cycle as the current and future tax revenues cannot service the debt.

The end of the debt spiral is here for the western democracies and this is why the world economy is crashing and inflation is now destroying the ability of the working poor around the world to feed themselves.

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Is Obama Gorbachev?

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Is Obama Gorbachev?
By James Howard Kunstler for ClusterFuck Nation
The eulogy for Walter Cronkite as “the most trusted man in America” on the CBS “Sixty Minutes” show said a lot about the condition of this nation — though it did not signify what CBS thought it did.  It wasn’t about the death of one hugely esteemed individual; it was about the broad institutional failure of TV news in general and the current grievous loss of legitimacy and authority in shaping a national consensus of reality.  Watching the old clips of Cronkite delivering the evening news years ago, one couldn’t help weighing the contrast with the current spectacle of snide, combative, overbearing idiocy acted out nightly by the likes of Kudlow, Olberman, Kneale, O’Reilly, Matthews, and Dobbs as they shout down their invited guest commentators, pander to their demographic, and diss their rivals for ratings.
It was instructive to notice that the program following “Sixty Minutes” — in the supreme weekly slot of 8p.m. Sunday — was a childish and stupid “reality” show called “Big Brother.”  This said even more about the craven quality of the people currently running CBS. It was also a useful lesson in the diminishing returns of technology as applied to television, since it should now be obvious that the expansion of cable broadcasting since the heyday of the “big three” networks has led only to the mass replication of video garbage rather than a banquet of culture, as first touted.
It should remind us more generally that when a society’s operations become broadly fraudulent and unreal, authority and legitimacy wither.  This is analogous to the position Barack Obama now finds himself in.  He was elected as the politician most trusted in America to change the fraudulent and unreal operations of the US government.  Don’t bother protesting that all politics is necessarily unreal and fraudulent. If it were so, you’d have to argue that the US Constitution was wholly a fraud, as well as Madison, Jefferson, Hamilton and the rest. It only has strong tendencies in that direction. (The Declaration of Independence was itself a direct strike against the fraud and unreality of British royal governance in America.)
As president, Barack Obama is faced with the essential fraudulence and unreality of the US economy.  Notice that, as ominous as they are, the wars in iraq and Afghanistan have generated only minimal protest so far in the early Obama period, despite the fact that they are not operationally different from their conduct under Bush. There is no protest because, for now, a consensus exists that our troops are in these places for perceived reasons — to keep Mideast oil supply lines open… to keep Islamic maniacs busy in their own backyard instead of on US territory… to keep Iran in a vise… to maintain the American “empire” (take your pick). There’s something there to appeal to a broad majority of US voters. Unlike Vietnam, Iraq and Afstan are not perceived as out-and-out frauds.
But the economy is.  Since September of 2008, when Hank Paulson began shoveling bail-outs to the very banks who screwed the world on fraudulent and unreal securities, and left American society comprehensively bankrupt, the consensus has only deepened on the perception of an historic swindle. And so far, President Obama has positioned himself as chief enabler to further swindling. One need look no further than the rulings this past spring of the Financial Accounting Standards Board (FASB) as authorized by the Securities and Exchange Commission (SEC, an official government agency, created 1934), which have allowed the biggest banks to pretend that the fraudulent paper in their vaults does not have to be recorded as a loss on their books.
The US economy is now dying a slow and painful death because it had become based on activities that had nothing to do with producing real wealth. Instead, it became dependent on rackets, that is, behavior geared to getting something for nothing.  These rackets are often summarized under the acronym FIRE (for finance, insurance and real estate), a system set up to strip-mine profits from the wish commonly labeled “the American Dream” — itself largely a product of televised advertising and propaganda.  The end product of all that was the doomed economy of suburban sprawl, an infrastructure for daily life with no future in a world defined by fossil fuel scarcity. The unraveling of debt at every level now is directly related to the mis-investments made in that way of life.
By now, it’s self-evident that the “change” voted for in November’s election was too horrifying to articulate.  It still is.  The suburban sprawl economy was all we had left.  Now it’s gone and we’re stuck with all its deleveraging after-effects — the worst case of “buyer’s remorse” since the fall of Nazi Germany. Thus, the only “change” that President Obama can really work for is the health care system, which is a life-and-death matter. The sordid rackets so ostentatiously infecting the system boil down vividly to lives ruined and bankrupted, and a system more frightful to deal with than disease itself. Probably the baseline truth is that health care will end up being rationed one way or another. It’s another prime symptom of population overshoot, and a reminder that life is tragic.
As another blogger put it so nicely last week on the web (sorry, but I forget who or where), this isn’t a “recession,” it’s a collapse. The excellent Dmitry Orlov has outlined the process very nicely in his book “Reinventing Collapse” about the parallels between the demise of the Soviet Union and the prospects for demise of the US as currently constituted.  Mikhail Gorbachev presided over the Soviet collapse. He must have been a leader of very subtle abilities.  Not only did he survive to enjoy a busy second act of life with a Nobel Prize in his pocket, but he accomplished a nearly bloodless transition in a society long-conditioned to bloodletting as the primary political act.
Here in the USA, where we have had over two hundred years experience with peaceful power transitions — even during the convulsions of 1860-65 — the outcome this time might not be so appetizing. It would be one of the supreme ironies of history if it turned out that the US was incapable of ending its most self-destructive rackets peacefully and bloodlessly, while the Russians shucked off its Soviet racket like an old sweater.  The way I see it, Mr. Obama just doesn’t have much time before his authority and legitimacy slough off and he is left with only his genial smile. The “hope” vested in him will end up in a Museum of Lost Hopes, along with the integrity of TV news and the rectitude of the medical profession. And funding for that museum will be cut by President Sarah Palin, representing Naziism US style — i.e. Naziism without the brains.

by James Howard Kunstler for ClusterFuck Nation

THE EULOGY FOR WALTER CRONKITE as “the most trusted man in America” on the CBS “Sixty Minutes” show said a lot about the condition of this nation – though it did not signify what CBS thought it did.  It wasn’t about the death of one hugely esteemed individual; it was about the broad institutional failure of TV news in general and the current grievous loss of legitimacy and authority in shaping a national consensus of reality. Watching the old clips of Cronkite delivering the evening news years ago, one couldn’t help weighing the contrast with the current spectacle of snide, combative, overbearing idiocy acted out nightly by the likes of Kudlow, Olberman, Kneale, O’Reilly, Matthews, and Dobbs as they shout down their invited guest commentators, pander to their demographic, and diss their rivals for ratings.

It was instructive to notice that the program following “Sixty Minutes” – in the supreme weekly slot of 8p.m. Sunday – was a childish and stupid “reality” show called “Big Brother.”  This said even more about the craven quality of the people currently running CBS. It was also a useful lesson in the diminishing returns of technology as applied to television, since it should now be obvious that the expansion of cable broadcasting since the heyday of the “big three” networks has led only to the mass replication of video garbage rather than a banquet of culture, as first touted.

Read the rest of this entry »

Never-ending Government lies about markets

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Wednesday, July 1, 2009
The Daily Reckoning PRESENTS: Throughout history, the US government has…how should we put it…not told the entire truth, especially when it comes to facts about the free market. Thomas DiLorenzo explores, below…
Never-Ending Government Lies About Markets
by Thomas DiLorenzo
Baltimore, Maryland
The purpose of government is for those who run it to plunder those who do not. Throughout history, governments have used violence, intimidation, coercion, and mass murder to enforce this system. But governments’ first line of “defense” is always a blizzard of lies – about its own alleged benevolence, altruism, heroism, and greatness, along with equally big lies about the “evils” of the civil society, especially the free market.
The current economic crisis, which was instigated by the government’s central bank and its boom-and-bust monetary policies, among other interventions, has once again been blamed on “too little regulation” and too much freedom.
Will Americans ever catch on to this biggest of all of government’s Big Lies?
When the Pilgrims came to America, they nearly starved to death because they adopted communal agriculture. When William Bradford, leader of the Mayflower expedition, figured this out he reorganized the Massachusetts pilgrims in a regime of private property in land. The incentives created by private property promptly created a dramatic economic turnaround and the rest is history. Most history books ignore this reality, however, and blame the starvation crisis of the Pilgrims on corporate greed on the part of the Mayflower company.
“The current economic crisis, which was instigated by the government’s central bank and its boom-and-bust monetary policies, among other interventions, has once again been blamed on ‘too little regulation’ and too much freedom.”
After the American Revolution, it was imperative to build roads and canals so that commerce could expand and the economy thrive. George Washington’s Treasury secretary, Alexander Hamilton, declared in his famous Report on Manufactures that private road and canal building would never succeed without government subsidies. President Thomas Jefferson’s Treasury secretary, Albert Gallatin, concurred. Meanwhile, private capital markets and the private “turnpike” industry were busy financing thousands of miles of private roads without any governmental assistance. When government did intervene in early-American road building, it was a financial catastrophe almost everywhere, so much so that by 1860 only Missouri and Massachusetts had not amended their state constitutions to prohibit the use of tax dollars for “internal improvements.”
Americans have been taught by their government-run schools that the post-1865 Industrial Revolution was bad for the working class, which made government regulation of work and wages, and the creation and prospering of labor unions necessary. In reality, people left the farms for factories because the latter offered far better wages and working conditions. Between 1860 and 1890, real wages increased by 50 percent in America, as myriad new products were invented, and made available to the common working person thanks to low-cost, mass production. It was capital investment that dramatically increased the productivity of labor, allowing hours worked to decline from an average of 61 hours per week in 1870 to 48 hours by 1929.
Higher worker productivity, fueled mostly by capital investment by entrepreneurs and private investors, also made it less necessary for families to force their children to work. Child labor was on the wane for decades before government got around to regulating or outlawing it. And when it did so it was to protect unionized labor from competition, not to protect children from harsh working conditions.
The “robber barons” of the late 19th century robbed no one. Most of them made their money by providing valuable – if not revolutionary – goods and services to the masses at lower and lower prices for decades at a time. John D. Rockefeller, for example, caused the price of refined petroleum to drop from 30 cents per gallon in 1869 to 8 cents in 1885, and continued to drop his prices for many years thereafter. James J. Hill built the most efficient and profitable transcontinental railroad without a dime’s worth of government subsidy. In return for their remarkable free-market success the government prosecuted both of these men, kangaroo court style, under the protectionist “antitrust” laws. The real “robbers” were politically connected businessmen like Leland Stanford, a former California governor and senator, who succeeded in getting laws passed that granted his company a monopoly in the California railroad business.
The federal antitrust laws were passed beginning with the Sherman Antitrust Act of 1890 because the government informed Americans that industry was becoming “rampantly cartelized” or monopolized. In reality, prices everywhere were plummeting as new products and services were being invented everywhere. The entire period from 1865 to 1900 was a period of price deflation. As I show in How Capitalism Saved America, all of the industries accused of being monopolies by Congress in 1889- 890 had been dropping their prices for at least a decade thanks to vigorous competition. And it was not a result of the idiotic theory of “predatory pricing.” No sane businessperson would intentionally lose money for decades by pricing below cost with the hope that he would somehow frighten away all competition forevermore.
Everyone “knows” that President Herbert Hoover was a staunch advocate of laissez-faire economics, and it was his lack of interventionism that caused the Great Depression. This is the biggest governmental lie in the history of America. Hoover was a “progressive” (as today’s socialists, also known as “Democrats,” have taken to calling themselves).
Hoover strong-armed corporate executives into raising wages at a time when wages needed to adjust downward in the free market in order to minimize unemployment. He devoted 13% of the federal budget to a failed “stimulus” program of pork-barrel spending and imposed some of the biggest tax increases in history to fund it all. He was a protectionist who signed the notorious Smoot-Hawley Tariff Act, which increased the average tariff rate to nearly 60 percent and spawned a worldwide trade war that shrunk world trade by two-thirds in three years. He cartelized the agricultural industry with “farm boards” that began the insane practice of paying farmers for not growing crops or raising livestock. He pioneered the politicization of capital markets by creating the Reconstruction Finance Corporation. And he ranted and raved against “greedy capitalists” while launching numerous government “investigations” of investors and the stock market. FDR’s top domestic advisor, Rexford Tugwell, said that his fellow New Dealers “owed much to Hoover,” who began many of the policies that they simply extended.
Every time the price of gasoline goes up significantly, Congress convenes a Nuremburg Trial-style inquisition of oil-company executives. This practice began in the 1970s when the government’s own foolish price controls on petroleum products caused massive shortages, and it needed someone to blame. Oil company executives are never praised when gasoline prices fall, as they have in the past year from over $4/gallon to under $2/gallon in many parts of the United States.
Most recently, the current economic crisis is said to be caused by the “excesses” of economic freedom and “too little regulation” of the economy, especially financial markets. This is said by the president and numerous other politicians, with straight faces, despite the facts that there are a dozen executive-branch cabinet departments, over 100 federal agencies, more than 85,000 pages in the Federal Register, and dozens of state and local government agencies that regulate, regiment, tax, and control every aspect of every business in America, and have been doing so for decades.
Laissez-faire run amok in financial markets is said to be a cause of the current crisis. But the Fed alone – a secret government organization that is accountable to no one and which has never been audited – performs hundreds of regulatory functions, in addition to recklessly manipulating the money supply. And it is just one of numerous financial regulatory agencies (the SEC, Comptroller of the Currency, Office of Thrift Supervision, FDIC, and numerous state regulators also exist). In a Fed publication entitled “The Federal Reserve System: Purposes and Functions,” it is explained that “The Federal Reserve has supervisory and regulatory authority over a wide range of financial institutions and activities.” That’s the understatement of the century. Among the Fed’s functions are the regulation of
Bank holding companies
State-chartered banks
Foreign branches of member banks
Edge and agreement corporations
US state-licensed branches, agencies, and representative offices of
foreign banks
Nonbanking activities of foreign banks
National banks (with the Comptroller of the Currency)
Savings banks (with the Office of Thrift Supervision)
Nonbank subsidiaries of bank holding companies
Thrift holding companies
Financial reporting
Accounting policies of banks
Business “continuity” in case of an economic emergency
Consumer-protection laws
Securities dealings of banks
Information technology used by banks
Foreign investments of banks
Foreign lending by banks
Branch banking
Bank mergers and acquisitions
Who may own a bank
Capital “adequacy standards”
Extensions of credit for the purchase of securities
Equal-opportunity lending
Mortgage disclosure information
Reserve requirements
Electronic-funds transfers
Interbank liabilities
Community Reinvestment Act subprime lending requirements
All international banking operations
Consumer leasing
Privacy of consumer financial information
Payments on demand deposits
“Fair credit” reporting
Transactions between member banks and their affiliates
Truth in lending
Truth in savings
That’s a pretty comprehensive list, the result of 96 years of bureaucratic empire building by Fed bureaucrats. It gives the lie to the notion that there has been “too little regulation” of financial markets. Anyone who makes such an argument is either ignorant of the truth or is lying.
Regards,
Thomas DiLorenzo
for The Daily Reckoning
Editor’s Note: Thomas DiLorenzo is a professor of economics at Loyola College in Maryland, a senior faculty member of the Ludwig von Mises Institute, and an affiliated scholar of the research arm of the League of the South and the Abbeville Institute. He holds a PhD in economics from Virginia Tech.
DiLorenzo has authored at least ten books, two of which are available here: How Capitalism Saved America, and his latest Hamilton’s Curse: How Jefferson’s Archenemy Betrayed the American Revolution – And What It Means for Americans Today.

by Thomas DiLorenzo
Posted in The Daily Reckoning
Wednesday, July 1, 2009

Throughout history, the US government has…how should we put it…not told the entire truth, especially when it comes to facts about the free market. Thomas DiLorenzo explores, below…

THE PURPOSE OF GOVERNMENT is for those who run it to plunder those who do not. Throughout history, governments have used violence, intimidation, coercion, and mass murder to enforce this system. But governments’ first line of “defense” is always a blizzard of lies – about its own alleged benevolence, altruism, heroism, and greatness, along with equally big lies about the “evils” of the civil society, especially the free market.

The current economic crisis, which was instigated by the government’s central bank and its boom-and-bust monetary policies, among other interventions, has once again been blamed on “too little regulation” and too much freedom.

Will Americans ever catch on to this biggest of all of government’s Big Lies?

When the Pilgrims came to America, they nearly starved to death because they adopted communal agriculture. When William Bradford, leader of the Mayflower expedition, figured this out he reorganized the Massachusetts pilgrims in a regime of private property in land. The incentives created by private property promptly created a dramatic economic turnaround and the rest is history. Most history books ignore this reality, however, and blame the starvation crisis of the Pilgrims on corporate greed on the part of the Mayflower company.

“The current economic crisis, which was instigated by the government’s central bank and its boom-and-bust monetary policies, among other interventions, has once again been blamed on ‘too little regulation’ and too much freedom.”

Read the rest of this entry »

America’s forgotten war against the Central Banks

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By Mike Hewitt         October 19th, 2007

“Let me issue and control a nation’s money supply, and I care not who makes its laws.” –Mayer Rothschild, founder of Rothschild banking dynasty

RIGHT FROM THE beginning, many prominent Americans such as Benjamin Franklin, Thomas Jefferson, and Andrew Jackson have argued and fought against the central banking polices used throughout Europe.

A note issued by a central bank, such as the Federal Reserve Note, is bank currency. These notes are given to the government in exchange for an interest-bearing government bond. The primary means to pay for the interest on these bonds is to borrow more bank notes, thus beginning a vicious cycle that ultimately ends with the complete destruction of the currency and bankruptcy of the nation. History is replete with such occurrences. (Currently, one particular nation stands out: Zimbabwe)

This begs the question as to why such a doomed system would exist? The reason is that during the course of the arrangement, which can last for centuries, the central bankers who issue the money amass great fortunes from the large sums of interest collected. In essence it is a transfer of wealth from the many to the elite few. Government leaders prefer such a system because it does not require budgets to be balanced. It is far more politically expedient to borrow, then to directly tax the citizens.

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Jefferson was no fool

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Thomas Jefferson’s Warning To America:
“I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”
Written by Jefferson in a letter to the Secretary of the Treasury Albert Gallatin (1802).

Written by aurick

16/02/2009 at 11:09 pm

Posted in Wise words

Tagged with ,