AIG spells nationalization of entire insurance industry

A I Jeez

The Wall Street Journal reports that since receiving government aid, insurance giant AIG has begun greatly underbidding its competitors in the insurance industry.  Fed Chair Ben Bernanke acknowledges this practice, and believes it is necessary for AIG to do this, in order to gain enough marketshare to become profitable.

With billions of government handouts, AIG is able to offer peerless premiums.  In a free market, offering such low premiums would be corporate suicide.  But AIG is not a free market participant.  It has government backing.  Bernanke and Treasury Secretary Timothy Geithner have, on numerous occasions, voiced their intent to do whatever is necessary to keep AIG from folding. In this context, risks that would normally bankrupt the company do not restrict its behavior, because its liquidity flows from a seemingly bottomless barrel, the purse of the citizenry.  Losses from these risks will continue to be subsidized, and those subsidies will encourage more risks, and bring on more losses.

Other insurance companies cannot compete with a company that has unlimited liquidity.  This leaves their executives with a dilemma: they can keep their premiums high and non-competitive, and lose all of their customers; or they can lower their rates to meet AIG’s, keep their marketshare, and become illiquid when they are forced to pay out to misfortunate customers.  Both of these options will end in bankruptcy.

When AIG’s competitors are nearing bankruptcy, one of a few results may play out:  they may fail outright, leaving their marketshare available to AIG; they may be bailed out by the government, which starts them on AIG’s path of neverending losses; or, they may be purchased by AIG.  In each of these results, a government-funded monopoly over the insurance industry is established.  This monopoly, like all monopolies, will suffer unnecessary costs and miss opportunities to innovate.

The added costs of a non-competitive insurance industry will be great, even in the unlikely circumstance that it is fully funded by premiums.  It is likely, however, that the monopoly would evolve into a nationalized insurance company, or a government service, rather than revert back to a private insurance corporation.

If AIG’s insurance role becomes a government service, it appears that the costs of that service will be borne by everyone who uses dollars, as the Treasury has started printing large amounts of currency to pay its bills.  This inflation is perhaps the most regressive form of taxation, because it hurts those who are not wealthy enough to protect themselves properly from its effects.

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A letter concerning economic reality

As a response to this bloomberg.com article, which declares and celebrates the end of laissez-faire economic influence, I shared with my mother (who forwarded the article to me) thoughts so relevant to the economic discussion in America today, they are worth repeating here:

This article, besides unpardonably confounding economic liberty with imperial oppression and brutal dictatorhip, grossly neglects theoretical argument, so the ignorant reader is to accept its conclusion without understanding it.  This negligence of thought is a necessary means to an unreasoned end.  So far from being worthy of publication, this article would be expensive at any price, and is not worth the time spent reading it.  By equivocating much, it says nothing.

The idea that Barack Obama will “referee the laissez-faire versus free-market debate” is laughable; as referee in that non-existent contest (laissez-faire and free-market are inseparable allies), Obama would probably sabotage both competitors and declare an interventionist victory.

I will present a few points ignored by this article that, if attended to, would render a very different image.

First, it has been over a century since we have had a free market for goods and services and private control of production and consumption.  Therefore we have not had capitalism, and it is irrational to blame economic woes on a system that does not exist; it is as reasonable to blame Martians.

Secondly, and most importantly, government fostered the economic crisis.  Behold artificially low interest rates during the tech bust of 2001-02.  The only way to keep rates so low is by printing money out of thin air.  This government-created free money combined with implicit government guarantees of new loans via Fannie Mae and Freddie Mac generated a housing bubble and subsequent financial bubble large enough to threaten the existence of the global financial system.  Because that system is naturally undeserving of its legitimacy, its collapse may be a good thing, but only if governments practice humility in the aftermath.  Governments should understand that the maximization of individual freedom is their purpose, both politically and economically.  Governments should come to know that the evils of paper money cannot be overstated.  Governments should not allow interested monopolies to control monetary bases.  Governments should focus on destroying monopolies, not turning them into unavoidable institutions.  Inexplicably, we must now rest our hopes of economic salvation upon the imminent Representative Barney Frank and Senator Christopher Dodd, both of whom promoted bad loan practices and free money policies for years, and neither of whom saw the economic crisis coming.  This is a sure case of the inmates running the asylum.

On this point, note that at least one House Representative did accurately predict the events that led to the financial bust.  In a speech to the House in 2001, he said “despite the long-term damage to the economy inflicted by the government’s interference in the housing market, the government’s policies of diverting capital to other uses creates a short-term boom in housing. Like all artificially-created bubbles, the boom in housing prices cannot last forever. When housing prices fall, homeowners will experience difficulty as their equity is wiped out. Furthermore, the holders of the mortgage debt will also have a loss. These losses will be greater than they would have otherwise been had government policy not actively encouraged over-investment in housing.” That Representative was ignored by almost everyone, and probably laughed at by the interventionist economists that this article aggrandizes.  That Congressman was Dr. Ron Paul, who continues to be widely ignored by popular economists, his colleagues, and our media.

Thirdly, most true free-market economists follow the “Austrian” theories of Murray Rothbard, Ludwig von Mises, and Friedrich A. von Hayek.  Free marketeers typically place more value on each of these three than Milton Friedman because their work was much more thorough, more laissez-faire, and more conclusive.  Few if any contemporary proponents of laissez-faire economics hail from the University of Chicago.

Economic science and history inform us that there will eventually be a final and all-destructive economic downturn: the fiat currency bust, which in the United States will be the destruction of the dollar.  The nature of this destruction will likely be hyperinflationary, like Germany’s post-WWI Mark or the ancient Roman denari (severe dilution of silver content in coins was the ancient “paper” money, and is still practiced).  I hope this will be followed by a return to sound asset-backed currencies and the elimination of fraudulent banking institutions, whose theft brings so much hardship to the unaware, unoffending, humble human.

Want some bad debt? Bailing on America.

Rights wronged

“I do solemnly swear that I will faithfully execute the Office of President of the United States, and will, to the best of my ability, preserve, protect, and defend the Constitution of the United States.” – Presidential Oath of Office in its entirety

“Stop throwing the Constitution in my face!  It’s just a goddamn piece of paper!” – George W. Bush, (so help us God)

“Go f*** yourselves, America.” – U.S. Secretary of the Treasury Henry Paulson (paraphrased)

“Amen, Mr. Secretary!” -Barney Frank (shockingly not a retard…according to standard definitions), and Christopher Dodd (aka, Oppressive Slimeball)

The unwritten American law: when any financial institution makes any bad loan anywhere, that institution is not accountable for its error: the American taxpayer is.  Actually, for the sake of preserving the market (and when they say “preserving”, they mean “undermining”, the American taxpayer will now prop up any large corporation, assuming it is a complete and total failure.  GM, Ford, Bear Stearns, Lehman Brothers, IndyMac, AIG, Fannie Mae, Freddie Mac, and every other non-competitive corporate loser: do not worry, because the United States no longer believes in capitalism.  Therefore you cannot fail; in fact, as a reward for your magnificently unsuccessful business models, you get free money from the American taxpayer.  The D.C. mafia are perfectly happy to crap all over the average American in order to sustain a politically friendly (albeit criminal) banking system.  What’s the old saying about America’s hospitable nature? Give me your swindling, your greedy, your corporate jet-flying masses?

Guess what, America? Henry Paulson is officially above the law.  $700,000,000,000 is not nearly enough; $2,000,000,000,000 is far from “enough” for the socialist journey upon which your government now embarks.  There will be more to pay, more to print, more to steal from your labor.  This new socialism is insatiable.

America does not have leaders anymore.  It has rulers.  It has owners.  They rule you, they own you, they have spent over a century subverting the supposedly binding agreement between you and them called the U.S. Constitution, and they have the power–through formal taxes and inflation–to take every last real dollar you ever saved, and they will, because their cars aren’t fast enough, their jets aren’t new enough, their diamonds aren’t big enough, and they know you are a bunch of suckers who still think the Presidential election matters.  Wake up and read the Constitution.  You’re getting royally screwed, America, and by a creature many of you still consider friendly: the federal government.  This President, this Congress, these judges and bureaucrats, these candidates–the agents of change–are, for the most part, your masters and your enemies, and if you let them, they will strip you of everything but your soul.

When you ask why or how this could happen–how the freest modern society could fall so far, and become economically depressed and politically oppressed–they will respond as they do now, explaining that they are not accountable, but you are–and sadly, in a way, they will be right.  The further their explanation strays from the truth, the more oppressive they will become, the more dangerous dissent will become to them.  The Constitutionalist will take on the foster name “terrorist”.  The reflective person will be legally termed the dangerous person; the truthful person: an enemy of the state.  As a wise man once said, “truth is treason in the empire of lies.”

Thomas Jefferson on “implied powers” of the Congress

Constitutional Convention

Thomas Jefferson gave his opinion on the Constitutionality of a national bank on February 15, 1791. In that testament, he not only provided a brilliant legal argument against the institution of a national bank; he also explained the intent of the Constitution’s two most controversial phrases. Today’s political analysts exchange differing opinions on the “general welfare” and “necessary and proper” clauses, but Jefferson’s explanations of them are more than a matter of opinion; they reveal the true intent of the American republic’s framers. Here is Jefferson’s historic opinion (verbatim, even the italics were added by Jefferson–not me–for emphasis):

1. To lay taxes to provide for the general welfare of the United States, that is to say, “to lay taxes for the purpose of providing for the general welfare.” For the laying of taxes is the power, and the general welfare the purpose for which the power is to be exercised. They are not to lay taxes ad libitum for any purpose they please; but only to pay the debts or provide for the welfare of the Union. In like manner, they are not to do anything they please to provide for the general welfare, but only to lay taxes for that purpose.

To consider the latter phrase, not as describing the purpose of the first, but as giving a distinct and independent power to do any act they please, which might be for the good of the Union, would render all the preceding and subsequent enumerations of power completely useless. It would reduce the whole instrument to a single phrase, that of instituting a Congress with power to do whatever would be for the good of the United States; and, as they would be the sole judges of the good or evil, it would be also a power to do whatever evil they please.

It is an established rule of construction where a phrase will bear either of two meanings, to give it that which will allow some meaning to the other parts of the instrument, and not that which would render all the others useless. Certainly no such universal power was meant to be given them. It was intended to lace them up straitly within the enumerated powers, and those without which, as means, these powers could not be carried into effect. It is known that the very power now proposed as a means was rejected as an end by the Convention which formed the Constitution. A proposition was made to them to authorize Congress to open canals, and an amendatory one to empower them to incorporate. But the whole was rejected, and one of the reasons for rejection urged in debate was, that then they would have a power to erect a bank, which would render the great cities, where there were prejudices and jealousies on the subject, adverse to the reception of the Constitution.

2. The second general phrase is, “to make all laws necessary and proper for carrying into execution the enumerated powers.” But they can all be carried into execution without a bank. A bank therefore is not necessary, and consequently not authorized by this phrase. It has been urged that a bank will give great facility or convenience in the collection of taxes. Suppose this were true: yet the Constitution allows only the means which are “necessary,” not those which are merely “convenient” for effecting the enumerated powers.

Jefferson makes it clear that much of what the Congress does today is not allowed by the Constitution.

So many reasons to love Thomas Paine

Paine

Thomas Paine was, by some accounts, the most well-read Englishman ever to live. If you are reading this, regardless of who you are, or how many Nobel prizes you have won, you can rest assured that Paine’s education was more complete than your own. When you read his commentaries on money and the role of government, it is difficult to believe that Thomas Paine was one of the most influential members of the liberal movement. I have little doubt that, if Paine were to traverse time and visit America today, and observe the frail philosophy–if it can be called that–which now occupies the title of “liberalism,” he would promptly vomit all over Barack Obama’s shoes.

Here I present Thomas Paine’s wisdom, in so many of his truthful quotes, based on nature and reason. From the spirit of revolution he carried to the American people through Common Sense in 1776, to his unwavering faith in God as expressed in his 1794 work, The Age of Reason, Paine was an indomitable figure in political history, and he would have died for his beliefs (and in many ruling minds of the time should have–he was held or tried for treason in France and England, as well as demonized worldwide for sharing his honest opinions); but Providence, it seemed, would not allow it. He was instrumental in inciting the two greatest revolutions of the Enlightenment (French and American), and worked with all his creative genius to expose both the beauty of Creation and the absurdity of monarchy, hoping through Rights of Man (1791) to incite a third revolution in Great Britain. In his words, which are relative today, as they always will be:

“There are habits of thinking peculiar to different conditions, and to find them out is truly to study mankind.” – Case of the Officers of the Excise

“The cause of America is in a great measure the cause of all mankind.” – Common Sense

“Society in every state is a blessing, but government even in its best state is but a necessary evil; in its worst state an intolerable one; for when we suffer, or are exposed to the same miseries by a government, which we might expect in a country without government, our calamities is heightened by reflecting that we furnish the means by which we suffer.” – Common Sense

“Men who look upon themselves born to reign, and others to obey, soon grow insolent; selected from the rest of mankind their minds are early poisoned by importance; and the world they act in differs so materially from the world at large, that they have but little opportunity of knowing its true interests, and when they succeed to the government are frequently the most ingorant and unfit of any throughout the dominions.” – Common Sense

“The reformation was preceded by the discovery of America, as if the Almighty graciously meant to open a sanctuary to the persecuted in future years, when home should afford neither friendship nor safety.” – Common Sense
“It is repugnant to reason, to the universal order of things, to all examples from the former ages, to suppose, that this continent can longer remain the subject to any external power.” – Common Sense

“It is not in numbers but in unity, that our great strength lies; yet our present numbers are sufficient to repel the force of all the world.” – Common Sense

“Can we but leave posterity with a settled form of government, and independent constitution of its own, the purchase at any price will be cheap.” – Common Sense

“Common sense will tell us, that the power which hath endeavored to subdue us, is of all others the most improper to defend us. Conquest may be effected under the pretence of friendship; and ourselves, after a long and brave resistance, be at last cheated into slavery.” – Common Sense

“The more men have to lose, the less willing are they to venture. The rich are in general slaves to fear, and submit to courtly power with the trembling duplicity of a spaniel.” – Common Sense

“As to religion, I hold it to be the indispensible duty of all government, to protect all conscientious professors thereof, and I know of no other business which government hath to do therewith.” – Common Sense

“Suspicion is the companion of mean souls, and the bane of all good society.” – Common Sense

“Immediate necessity makes many things convenient, which if continued would grow into oppressions. Expedience and right are different things.” – Common Sense

“When we are planning for posterity, we ought to remember that virtue is not hereditary.” – Common Sense

“Men read by way of revenge.” – Common Sense

“He who takes nature for his guide is not easily beaten out of his argument.” – Common Sense

“We have it in our power to begin the world over again.” – Common Sense

“Peace with trade is preferable to war without it.” – Common Sense

“Our plan is peace for ever.” – Common Sense

“Call not coldness of soul, religion; nor put the Bigot in the place of the Christian.” – Common Sense

“And here without anger or resentment I bid you farewell, sincerely wishing, that as men and Christians, ye may always fully and uninterruptedly enjoy every civil and religious right; and be, in your turn, the means of securing it to others; but that the example which ye have unwisely set, of mingling religion with politics, may be disavowed and reprobated by every individual inhabitant of America.” – Common Sense

“These are the times that try men’s souls.” – American Crisis

“Tyranny, like hell, is not easily conquered; yet we have this consolation with us, that the harder the conflict, the more glorious the triumph. What we obtain too cheap, we esteem too lightly: it is dearness only that gives every thing its value.” – American Crisis

“Though the flame of liberty may sometimes cease to shine, the coal can never expire.” – American Crisis

“A right, to be truly so, must be right within itself: yet many things have obtained the name of rights, which are originally founded in wrong. Of this kind are all rights by mere conquest, power or violence.” – Public Good

“It seldom happens that the romantic schemes of extensive dominion are of any service to a government, and never to a people. They assuredly end at last in loss, trouble, division and disappointment.” – Public Good

“Where knowledge is a duty, ignorance is a crime.” – Public Good

“Other revolutions may have originated in caprice, or generated in ambition; but here, the most unoffending humility was tortured into rage, and the infancy of existence made to weep.” – Letter to the Abbe Raynal

“Were it possible we could have known the world when in a state of barbarism, we might have concluded that it never could be brought into the order we now see it.” – Letter to the Abbe Raynal

“The philosopher of one country sees not an enemy in the philosopher of another: he takes his seat in the temple of science, and asks not who sits beside him.” – Letter to the Abbe Raynal

“Our style and manner of thinking have undergone a revolution more extraordinary than the political revolution of our country. We see with other eyes; we hear with other ears; and think with other thoughts, than those we formerly used. We can look back on our own prejudices, as if they had been the prejudices of other people.” – Letter to the Abbe Raynal

“The mind once enlightened cannot again become dark.” – Letter to the Abbe Raynal

“Of more use was one philosopher, though a heathen, to the world, than all the heathen conquerers that ever existed.” – Letter to the Abbe Raynal

“Freedom is destroyed by dependence, and the safety of the state endangered thereby.” – Dissertations on Government, the Affairs of the Bank, and Paper Money

“To hold any part of the citizens of the state, as yearly pensioners on the favour of an assembly, is striking at the root of free elections.” – Dissertations on Government, the Affairs of the Bank, and Paper Money

“Gold and silver are the emissions of nature: paper is the emission of art. The value of gold and silver is ascertained by the quantity which nature has made in the earth. We cannot make that quantity more or less than it is, and therefore the value being dependent upon the quantity, depends not on man. Man has no share in making gold or silver; all that his labours and ingenuity can accomplish is, to collect it from the mine, refine it for use and give it an impression, or stamp it into coin.” – Dissertations on Government, the Affairs of the Bank, and Paper Money

“The only proper use for paper, in the room of money, is to write promissory notes and obligations of payment in specie upon.” – Dissertations on Government, the Affairs of the Bank, and Paper Money

“When an assembly undertake to issue paper as money, the whole system of safety and certainty is overturned, and property set afloat. Paper notes given and taken between individuals as a promise of payment is one thing, but paper issued by an assembly as money is another thing. It is like putting an apparition in the place of a man; it vanishes with looking at it, and nothing remains but the air.” – Dissertations on Government, the Affairs of the Bank, and Paper Money

“Money, when considered as the fruit of many years’ industry, as the reward for labour, sweat and toil, as the widow’s dowry and children’s portion, and as the means of procuring the necessaries and alleviating the afflictions of life, and making old age a scene of rest, has something in it sacred that is not to be sported with, or trusted to the airy bubble of paper currency.” – Dissertations on Government, the Affairs of the Bank, and Paper Money

“The evils of paper have no end. Its uncertain and fluctuating value is continually awakening or creating new schemes of deceit. Every principle of justice is put to the rack, and the bond of society dissolved: the suppression, therefore, of paper money might very properly have been put into the act for preventing vice and immorality.” – Dissertations on Government, the Affairs of the Bank, and Paper Money

“As to the assumed authority of any assembly in making paper money, or paper of any kind, a legal tender, or in other language, a compulsive payment, it is a most presumptuous attempt at arbitrary power. There can be no such power in a republican government: the people have no freedom, and property no security where this practice can be acted: and the committee who shall bring in a report for this purpose, or the member who moves for it, and he who seconds it merits impeachment, and sooner or later may expect it.” – Dissertations on Government, the Affairs of the Bank, and Paper Money

“Of all the various sorts of base coin, paper money is the basest. It has the least intrinsic value of anything that can be put in the place of gold and silver. A hobnail or a piece of wampum far exceeds it. And there would be more propriety in making those articles a legal tender than to make paper so.” – Dissertations on Government, the Affairs of the Bank, and Paper Money

“Nature has provided the proper materials for money, gold and silver, and any attempt of ours to rival her is ridiculous.” – Dissertations on Government, the Affairs of the Bank, and Paper Money

“A body of men holding themselves accountable to nobody ought not to be trusted by anybody.” – Rights of Man

“A single expression, boldly conceived and uttered, will sometimes put a whole company into their proper feelings; and whole nations are acted upon in the same manner.” – Rights of Man

“All the great laws of society are laws of nature.” – Rights of Man

“All the great services that are done in the world are performed by volunteer characters, who accept nothing for them.” – Rights of Man

“Are not conquest and defeat each of the same price, and taxes the never-failing consequence?” – Rights of Man

“By the simple operation of constructing government on the principles of society and the rights of man, every difficulty retires, and all the parts are brought into cordial unison.” – Rights of Man

“Every religion is good that teaches man to be good; and I know of none that instructs him to be bad.” – Rights of Man

“For a nation to love liberty, it is sufficient that she knows it; and to be free, it is sufficient that she wills it.” – Rights of Man

“From a small spark, kindled in America, a flame has arisen, not to be extinguished.” – Rights of Man

“Government is a beast.” – Rights of Man

“Governments now act as if they were afraid to awaken a single reflection in man.” – Rights of Man

“I do not believe that any two men, on what are called doctrinal points, think alike who think at all. It is only those who have not thought that appear to agree.” – Rights of Man

“If the crimes of men were exhibited with their sufferings, stage effect would sometimes be lost, and the audience would be inclined to approve where it was intended they should commiserate.” – Rights of Man

“If the good to be obtained be worthy of a passive, rational, and costless revolution, it would be bad policy to prefer waiting for the calamity that should force a violent one.” – Rights of Man

“If we examine, with attention, into the composition and constitution of man, the diversity of his wants, and the diversity of talents in different men for reciprocally accommodating the wants of each other, his propensity to society, and consequently to preserve the advantages resulting from it, we shall easily discover, that a great part of what is called government is mere imposition.” – Rights of Man

“In the representative system, the reason for everything must publicly appear. Every man is a proprietor in government, because it affects his property. He examines the cost, and compares it with the advantages; and above all, he does not adopt the slavish custom of following what in other governments are called LEADERS.” – Rights of Man

“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.” – Rights of Man

“Instead of seeking to reform the individual, the wisdom of a Nation should apply itself to reform the system.” – Rights of Man

“Invention is continually exercised, to furnish new pretences for revenue and taxation. It watches prosperity as its prey, and permits none to escape without a tribute.” – Rights of Man

“It can only be by blinding the understanding of man, and making him believe that government is some wonderful mysterious thing, that excessive revenues are obtained.” – Rights of Man

“It is a general idea, that when taxes are once laid on, they are never taken off.” – Rights of Man

“It is time that nations should be rational, and not be governed like animals, for the pleasure of their riders.” – Rights of Man

“Laws difficult to be executed cannot generally be good.” – Rights of Man

“Lay then the axe to the root, and teach governments humanity. It is their sanguinary punishments which corrupt mankind.” – Rights of Man

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

“Man is not the enemy of man, but through the medium of a false system of government.” – Rights of Man

“Man will not be brought up with the savage idea of considering his species as his enemy, because the accident of birth gave the individuals existence in countries distinguished by different names.” – Rights of Man

“Man, were he not corrupted by governments, is naturally the friend of man, and human nature is not of itself vicious.” – Rights of Man

“Nations can have no secrets; and the secrets of courts, like those of individuals, are always their defects.” – Rights of Man

“Nations, like individuals, who have long been enemies, without knowing each other, or knowing why, become the better friends when they discover the errors and impositions under which they had acted.” – Rights of Man

“Nothing is to be looked for but what has already happened; and as to reformation, whenever it come, it must be from the nation, and not from government.” – Rights of Man

“Only partial advantages can flow from partial reforms.” – Rights of Man

“Principles must stand on their own merits, and if they are good they certainly will.” – Rights of Man

“Public money ought to be touched with the most scupulous consciousness of honor. It is not the produce of riches only, but of the hard earnings of labor and poverty.” – Rights of Man

“Reason and discussion will soon bring things right, however wrong they may begin.” – Rights of Man

“Reason obeys itself; and ignorance submits to whatever is dictated to it.” – Rights of Man

“Taxes were not raised to carry on wars, but wars were raised to carry on taxes.” – Rights of Man

“That there are men in all nations who get their living by war, and by keeping up the quarrels of nations, is as shocking as it is true; but when those who are concerned in the government of a country, make it their study to sow discord, and cultivate prejudices between nations, it becomes the more unpardonable.” – Rights of Man

“The American constitutions were to liberty, what a grammar is to language: they define its parts of speech, and practically construct them into syntax.” – Rights of Man

“The greatest of all ridiculous things are acted in governments.” – Rights of Man

” Commerce needs no other protection than the reciprocal interest which every nation feels in supporting it.” – Rights of Man

“The instant formal government is abolished, society begins to act. A general association takes place, and common interest produces common security.” – Rights of Man

“The most unprofitable of all commerce is that connected with foreign dominion. To a few individuals it may be beneficial, merely because it is commerce; but to the nation it is a loss. The expense of maintaining dominion more than absorbs the profits of any trade.” – Rights of Man

“The name of the Creator ought not to be introduced to witness the degradation of his creation.” – Rights of Man

“The probability is always greater against a thing beginning, than of proceeding after it has begun.” – Rights of Man

“The right of war and peace is in the nation. Where else should it reside, but in those who are to pay the expense?” – Rights of Man

“There is existing in man, a mass sense lying in a dormant state, and which, unless something excites it to action, will descend with him, in that condition, to the grave.” – Rights of Man

“What at first was plunder, assumed the foster name of revenue.” – Rights of Man

“What inducement has the farmer, while following the plough, to lay aside his peaceful pursuit, and go to war with the farmer of another country?” – Rights of Man

“Whatever is my right as a man, is also the right of another; and it becomes my duty to guarantee, as well as possess.” – Rights of Man

“When governments are at war, the attack is made on the common stock of commerce, and the consequence is the same as if each had attacked his own.” – Rights of Man

“Why do men continue to practice themselves the absurdities they see in others?” – Rights of Man

“Wisdom degenerates in governments as governments increase in age.” – Rights of Man

“It is a dangerous attempt in any government to say to a nation, “thou shalt not read.” – Letter Addressed to the Addressers of the Late Proclamation

“The principles of and conduct of any government must be bad, when that government dreads and startles at discussion, and seeks security by a prevention of knowledge.” – Letter Addressed to the Addressers of the Late Proclamation

“It is error only, and not truth, that shrinks from inquiry.” – Letter Addressed to the Addressers of the Late Proclamation

“Principles have no connection with time, nor characters with names.” – Letter Addressed to the Addressers of the Late Proclamation

“It is only in governments founded on assumption and false principles, that reasoning upon, and investigating systems and principles of government, and showing their several excellencies and defects, are termed libellous and seditious. These terms were made part of the charge brought against Locke, Hampden, and Sydney, and will continue to be brought against all good men, so long as bad governments shall continue.” – Letter Addressed to the Addressers of the Late Proclamation

“If, to expose the fraud and imposition of monarchy, and every species of hereditary government–to lessen the oppression of taxes–to propose plans for the education of helpless infancy, and the comfortable support of the aged and distressed–to endeavour to conciliate nations to each other–to extirpate the horrid practice of war–to promote universal peace, civilization, and commerce–and to break the chains of political superstition, and raise degraded man to his proper rank; –if these things be libellous, let me live the life of a libeller, and let the name LIBELLER be engraved on my tomb.” – Letter Addressed to the Addressers of the Late Proclamation

“I have written a book; and if it cannot be refuted, it cannot be condemned. But I do not consider the prosecution as particularly levelled against me, but against the general right, or the right of every man, of investigating systems and principles of government, and showing their several excellencies or defects.” – Letter Addressed to the Addressers of the Late Proclamation

“Whatever the rights of people are, they have a right to them, and none have a right either to withhold them, or to grant them.” – Letter Addressed to the Addressers of the Late Proclamation

“A thing, moderately good, is not so good as it ought to be. Moderation in temper is always a virtue; but moderation in principle is a species of vice.” – Letter Addressed to the Addressers of the Late Proclamation

“If you now enjoy freedom and happiness, you should be conscious of the reasons for your contentment.” – An Essay for the Use of New Republicans in Their Opposition to Monarchy

“A person educated in the belief that he has a right to command others is inevitably bound by his surroundings to lose all sense of reason and justice.” – An Essay for the Use of New Republicans in Their Opposition to Monarcy

“Why assume an evil solely for the purposes of providing a remedy?” – An Essay for the Use of New Republicans in Their Opposition to Monarchy

“It is our duty as legislators not to spill a drop of blood when our purpose may be effectually accomplished without it.” – Reasons for Preserving the Life of Louis Capet

“I have always strenuously supported the right of every man to his own opinion, however different that opinion might be to mine. He who denies to another this right, makes a slave of himself to his present opinion, because he precludes himself the right of changing it.” – Age of Reason

“All national institutions of churches, whether Jewish, Christian or Turkish, appear to me no other than human inventions, set up to terrify and enslave mankind, and monopolize power and profit.” – Age of Reason

“It is necessary to the happiness of man that he be mentally faithful to himself. Infidelity does not consist in believing, or in disbelieving; it consists in professing to believe what he does not believe.” – Age of Reason

“The commandments carry no internal evidence of divinity with them; they contain some good moral precepts, such as any man qualified to be a lawgiver, or a legislator, could produce himself, without having recourse to supernatural intervention.” – Age of Reason

“That many good men have believed this strange fable, and lived very good lives under that belief (for credulity is not a crime), is what I have no doubt of. In the first place, they were educated to believe it, and they would have believed anything else in the same manner.” – Age of Reason

“Whenever we read the obscene stories, the voluptuous debaucheries, the cruel and torturous executions, the unrelenting vindictiveness, with which more than half the Bible is filled, it would be more consistent that we called it the word of a demon than the Word of God. It is a history of wickedness that has served to corrupt and brutalize mankind; and, for my part, I sincerely detest it as I detest everything that is cruel.” – Age of Reason

“There is not, throughout the whole book called the Bible, any word that describes to us what we call a poet, nor any word which describes what we call poetry. The case is that the word prophet, to which latter times have affixed a new idea, was the Bible word for poet, and the word prophesying meant the art of making poetry. It also meant the art of playing poetry to a tune upon any instrument of music.” – Age of Reason

“Had it been the object of Jesus Christ to establish a new religion, he would undoubtedly have written the system himself, or procured it to be written in his life-time. But there is no publication extant authenticated with his name. All the books called the New Testament were written after his death. He was a Jew by birth and by profession; and he was the Son of God in like manner that every other person is–for the Creator is the Father of All.” – Age of Reason

“Do we want to know that God is? Search not the book called the Scripture, which any human hand might make, but the Scripture called the creation.” – Age of Reason

“As to the Christian system of faith, it appears to me a species of Atheism–a sort of religious denial of God. It professes to believe in a man rather than in God.” – Age of Reason

“Wealth is no proof of moral character; nor poverty of the want of it.” – Dissertation on First Principles of Government

“When all other rights are taken away the right of rebellion is made perfect.” – Dissertation on First Principles of Government

“The moral principle of revolutions is to instruct, not to destroy.” – Dissertation on First Principles of Government

“There are cases in which silence is a loud language.” – Letter to George Washington

Thank you for displaying true liberalism, Tom–not whatever the modern “liberal” wackos espouse today.

Government submits to God, who wants to leave us alone

God at his computer.

This story is, of course, fictional.  If you see this headline in the newspaper tomorrow morning, you will need to pinch yourself–and if that does not wake you–realize that you have in fact died and gone to heaven.  As I imagine it, there are no tax collectors in heaven.  Upon entry into heaven, I could pick up the Times and read the following:

Today God announced major cutbacks in everything government. 

God called for an immediate end to all hostilities in Iraq, and condemned George W. Bush for lying to His people and killing His children without just cause.  “You’ll burn in hell for this,” God ordained matter-of-factly, in an unusually calm damning ceremony.  Taking questions after the announcement, God explained the departure from the usual thunderbolt display.  “Our traditional ceremony was a little over the top, and we’re trying to cut expenditures in these ceremonies anyway.  After the Falwell incident, I don’t really trust the lightning machine anymore–he wasn’t supposed to burn until he actually got to Hell.  I am not one to deprive Lucifer of his fun, but I am told he has still had plenty of it with Falwell.”  He then belted maniacal laughter for over three minutes.

God’s announcement expectedly drew some disfavor from President Bush, who backwardly believed he was doing God’s work.  “But God–” he started to say, but The All-Knowing knew what was coming and responded before Bush could finish.  “I do my own work, thank you,” God thundered.  “Love thy neighbor.  It’s simple, really.  Why couldn’t you just do it?  Jesus!”

The military will be mostly dissolved by mid-year, much to the dismay of the military industry.  Sources tell us that one CEO was particularly opposed to God’s will.  God quieted his argument, saying, “I never intended for you people to go around killing one another because of your petty arguments about me.  I’m going to let you keep fire and subsequent technological advancements.  Don’t push your luck with this fighting fetish you’ve developed.”

God called for the immediate dissolution of the CIA, FBI, the Department of Homeland Security, and all government secrecy.  He said His “reasoning here is simple: if people really want to be free, information must be free to them.  Besides, there is no reason for a good government to have secrets.  Good governments do not need protection, because people find no fault in them worth attacking.  If anything is going to be mysterious in this world, it’s going to be Me.”

No more personal taxes or tax identification numbers.  God seemed particularly frustrated by these human measures.  “I don’t know what nation is before me now, when I look at these income taxes,” God offered.  “Soviet Russia? Nazi Germany? Oceania?  Certainly not one nation, under Me, indivisible, with liberty and justice for all.  There’s no liberty in assigning everyone a number and staking claim to their labor–it’s as if you’ve modeled your society after Hell.”

God ended drug laws as well, and allowed all non-violent drug offenders to leave prison.  He called for a cutback of over 85% of the nation’s local police forces.  “You’ve got a lot of nerve,” He reprimanded Congress.  “Do you think I put cannabis on this planet so that you could spend your days trying to destroy it?  It’s not going away.  I put it here for your enjoyment.  Don’t tell people what they are allowed to do with what I put here.  I ought to damn you all to Hell for this!  As I look around, you’re all headed there anyway–oh, except for you, Dr. Paul of Texas: the Lot of Washington D.C.  What’s that, Ron?  Alright, you can bring Duncan along too.  No, Kucinich burns with the rest of them!  Alright, you may rescue Barney Frank from damnation as well, as we cannot fault the mentally handicapped.”

In perhaps related news, the Federal Reserve Board has disappeared.  No one can find any of them anywhere.  God did not explain where they went, but did say they will not be back.  “Gold and silver will always back the currency, to protect My people’s savings from confiscation.  The market, which I created, will determine rates of interest.”

To cap off His day of governing, God smote Mike Huckabee.  “Huckabee is a false idol,” decreed God, “almost as bad as the pope.”  The Almighty went on to relate Huckabee to the ancient Golden Calf, and his followers to ancient pagans because of their lack of respect for what God called “civic virtue.”

Fear is Tyranny was able to catch up with God during an evening prayer session.  We asked Him if He was done with governing for awhile.  “Absolutely not,” He said, “this is just the first day.  I’ve got five more to go before I rest.  My motivation here is very basic and has never changed: I gave people the capacity to think so that they might use it to guide themselves, and I am simply taking steps to encourage individual thought.”  Pray for similar results tomorrow.

Wealth, Economics and Foreign Policy

Earthly residence of the devil

A real financial tip: Don’t buy anything you can’t afford, and hold onto whatever property you have through this depression. This is not a sale on financial stocks, nor is it a time to be jumping into shallow pools of capital. This is the beginning of something unprecedented and horrible for this country, and the media is making light of it. The Federal Reserve is knee-deep right now, and it’s only going to get worse over the next two years. If you look at the economic indicators, there is no avoiding rough times ahead, and the people may end up burning down the Fed’s doors by the time everything they have done comes to light. When bond and interest rates start skyrocketing, all hell will break loose, and there will be two choices: massive unemployment or hyperinflation (likely a combination of the two).

The worst thing that could happen: war with Iran. I believe China is trying to bait the U.S. into war with Iran, so that they may become allies with Iran and turn against Europe and the United States. Part of Iran’s political confidence has to stem from some assurance from the Chinese. After China backs Iran in the U.S. invasion, they will then call all of their U.S. Treasury securities, sell U.S. stocks, and leave our economy completely destroyed, which would allow them to realize their long-awaited goal of becoming the world’s top superpower. Our military and economic interests would find themselves penniless and cornered in the Middle East and Asia, and if cool heads do not prevail, we might quickly assume the identity of a nationalist and socialist country, eager to blame anyone but ourselves.

Going forward from the depths of what is sure to come within a score (hyperstagflation and confiscatory tax rates while paying the boomer generation’s debts and entitlements), the important thing to realize is that we already know how to build a solid foundation of self-security.  We did it over two hundred years ago, and we need to follow the Constitution back to prosperity. We must learn from history, practice sound economic and monetary policies, and stop repeating our mistakes.  For now, the writing is on the wall, and I am eager to wash it off as quickly as possible.  The Fed needs to let the market correct itself, and stop prolonging its own demise.