Open bailout opposition letter to Congress

Stolen from you by U.S.

“That government is best which governs the least, because its people discipline themselves.” – Thomas Jefferson

There is a lot of hype in Washington this week, a lot of short-term thinking, but very little honest reflection and philosophically sound governance based on the long term prospects of the American economy.  Jefferson was right: our financial markets have fallen into a cycle of government dependence and therefore no longer discipline themselves.  The American economy has lived beyond its means; to deny this is to declare yourself ignorant and unfit to govern.  We have floated on a cloud of credit, and believed ourselves to be in heaven, and though we have ventured far from earth, the latest liquidity squeeze has allowed us to see just how far we must fall when our economy’s bill comes due.  Though the $700,000,000,000 proposal before you may indeed postpone the payment date, the American people will eventually have to pay dearly for living on money that has been given value–not by production–but by irrational faith, and you can be certain that every postponement will make that future payment more painful than it would be today.  Do not be convinced that there are no free market solutions to this crisis.  The unspeakable ideal of economic freedom will pump more liquid capital into our financial markets than the government ever could, and more importantly, the money generated by such a system would be sound and valuable.  The chronic risks of moral hazard and inflation this bailout poses far outweigh the risks of a brief credit crisis caused by market-liquidated debt.

We cannot become wiser before we admit that we have been foolish in the past.  Market interference was, in most instances, foolish.  The Community Re-Investment Act was foolish.  Taxing capital gains was foolish.  Turning over Congress’ constitutional money-coining responsibility to a private, secretive organization was foolish.  Encouraging irresponsible lending through never-ending taxpayer bailouts was foolish.  Artificially low interest rates were foolish.  Price manipulation was foolish.  Giving up on sound money was foolish.  Losing faith in freedom was foolish.  Ours, however, is not a fated existence.  Nowhere is it written in stone that we must remain foolish, or that we cannot obey Constitutional principles.  If, as Senator John McCain likes to say, you “came to Washington to change Washington,” now is your chance to realize your lofty dreams.  Crisis is the proper time for reform.  Now is the time to embrace real capitalism.  The American people should not be told to fear freedom, as they are being told now, but to embrace it.  The time has come for Americans to be rewarded for their own successes, and held accountable for their own mistakes.  The time has come for the ambitious legislators in Washington to stop fiscally abusing the children of this nation.

1994, 2000: Remembering the words of Goldwater and Reagan, American median voters want smaller government and balanced budgets, so they elect Republicans; in return, they receive the most rampant growth in government (and public debt) this continent has ever known.  2006: the median American voters want out of a conflict that is unrelated to their security or welfare, so they elect Democrats; in return, the war’s funding is not cut off but greatly increased.  2008: the American people want no taxpayer bailouts, they want to end the bubble-blowing policies of the Federal Reserve, and they want to stop the growing cycle of debt that has ruined a once free economy; in return, they are presented with the largest taxpayer bailout ever, a more powerful and secretive central bank, the largest economic bubble-blowing scheme ever contrived, and more debt than they can ever afford to pay off.

The blindfold has been removed from the American people.  They are awakening to a pattern that reveals self-government as a myth.  The extraordinary actions of the federal government are only serving to remove its mask, revealing its nationalist, socialist, imperialist, authoritarian, unresponsive, evil face.  We can accurately predict that, on matters of true importance, when a particular course of action is supported by more than 70% of the American people, their government will pursue the opposite course, pretending the people are a force of no consequence–an attitude to be expected of King Louis’ court, but not of a republic’s elected leaders.  I need not remind you of the French response to that attitude.  The United States government has lost so much legitimacy that it may not survive the latest proposal, should it pass.  The American people are well-aware of the truly criminal nature of any financial bailout; a huge one will both injure and offend them.  Moreover, it will not come without consequence; their lanterns are burning, their pitchforks are raised, and they are prepared to halt the criminal acts of this government, should it become necessary for them to do so.

If we the people leave, do they the rulers win?

We have owners.  They own us.

“Truth is treason in the empire of lies.” – Ron Paul

The long-term economic outlook for this country is so grim–and this is well-researched and almost universally accepted–that I can hardly see myself sticking around to endure it. A free and great industrial republic has become a credit-addicted empire, propped up today not by human productivity and ingenuity, but by the artistic renderings of the Bureau of Printing and Engraving–a small bandage placed fruitlessly on a fatal systemic illness.

Americans, as a whole, are either unaware of their collective fate, or unwilling to alter it. Toss charges in whatever direction you wish; the real culprit is in the mirror. But no matter where we place the blame for our government’s fiscal mess, we would be wise to understand that economic laws cannot be ignored forever, that justice is a force of nature not to be denied, and that reality will set in–as soon as we accept this diagnosis, we can begin to treat the disease. Every American born today enters a society of bondage, accompanied by a $75,000 liability to a government that child did not elect. I am twenty-four years old, and I hope that in the future, American children will be born free. I am, however, reluctant to believe this will happen in my lifetime.

As we the people request greater freedoms, they the government tighten our chains, and we are left with a choice: we may stay in America and struggle against our rulers for what we once called inalienable rights, or we may seek refuge in another land. If I, as an advocate for liberty, leave America, have I allowed the totalitarian forces in this country to win? Is liberty like a game, with winners and losers? If so, is there any chance the people can ever beat the government? Should I stay and fight for America’s true cause, or should I go and find prosperity elsewhere? My dilemma is not a new one. In Hitler’s Germany, were the liberty-minded citizens who fled the country better than the liberty-minded activists who stayed and were imprisoned or killed for their beliefs? As I wonder which option is better, I am reminded of a couple of quotes:

“I am in Birmingham because injustice is here.” – Martin Luther King Jr.

“Independence is my happiness, and I view things as they are, without regard to place or person; my country is the world, and my religion is to do good.” – Thomas Paine

If I could find a truly free country, I would move there, but it seems the increasingly oppressive governments of the world have rejected the enlightened principles that many countries once embraced, and most individuals still do embrace. What keeps me here is best expressed by the following utterance, which, though relevant, is probably too clever and wise to appear alongside my earnest musings:

“You and I have a rendezvous with destiny. We will preserve for our children this, the last, best hope of man on Earth, or we will sentence them to take the last step into a thousand years of darkness. Alexander Hamilton said, ‘a nation which can prefer disgrace to danger is prepared for a master, and deserves one.’ And in that sentence, he told us the entire story: if we lose freedom here, there is no place to escape to; this is the last stand on Earth.” – Ronald Reagan

Let freedom ring.

Generational slavery

Checks needed for purchasing more check printers

“Man has no property in man; neither has any generation a property in the generations which are to follow.” – Thomas Paine

I remember watching an episode of Oprah (though I should clarify that this is not a habit of mine) a couple of years ago, featuring a woman who had been duped by her fraudulently bankrolled husband–he seemed to have everything (on credit), but actually could not afford any of it, and when the bills came due, he disappeared, and left her holding the yacht payments.  She was bankrupt, and would have been left in a position of pseudo-slavery for the rest of her life had Oprah not stepped in–all because someone who was supposed to care about her abused her trust.

This woman’s financial situation is a microcosm of the generational explosion of debt that will soon torment the United States and much of the world.  The baby boom generation is about to retire and start collecting Social Security and Medicare benefits, the costs of which have traditionally been underestimated.  Current budgeting practices are unsustainable, which of course means they cannot be sustained. 

The problem is not the baby boom generation’s politics but its size–there are 77 million of them, but there’s still only one Oprah, and only one American labor force, which isn’t growing at near the rate of the retirement-benefit force.  The only long-term solutions are massive government cuts or massive tax increases, neither of which are very good campaign platforms.

Boomers did not have as many children as their parents did, so in order to support the boomers the way the boomers have supported the elderly, the new American worker must be prepared to pay a confiscatory income tax rate or go to jail, or leave the country.  Unfortunately, a number of the most talented individuals of my generation (perhaps even I) will choose to abandon ship and keep their finances above water.

The sad thing about this reality is that everyone knows it, and no one will stop it.  Our nation faces a fiscal tsunami of debt that is growing every year, with no end in sight.  When our leaders choose to ignore it, and when we choose to ignore that our leaders ignore it, we are committing a moral crime no less severe than (and almost exactly the same as) the slavery of old, asserting that one group of people (those working in America today) may steal the labor of another (those to work in America in the future) against their will, and for no greater reason than the chance timing of their births.

The only morally just way to handle the debt and obligations of the American government is to stop deficit spending now.  Anything that can be cut must be cut.  Start with the war, which almost everyone now agrees was a mistake to begin with.  Move on to other government boondoggles until we have trimmed them down to an approachable size.  Until we can get the budget under control, we should consider the American government fiscally and morally bankrupt.

Follow

Get every new post delivered to your Inbox.