Democracy is Destroying the U.S.
Politics / US Politics Oct 14, 2010 - 08:11 AM GMTBy: Jeff_Berwick
Faced with a horrible unemployment situation and many companies moving out of the US to countries such as China and India, many point the finger of blame at "globalism". But companies aren't necessarily leaving the US just because it can be cheaper to operate in other regions. The problem is much deeper and has more to do with companies escaping high taxation, ridiculous amounts of regulation and moving to regions that are growing as opposed to the US which is in a terrible state of disrepair and only getting worse.
Globalism (which actually began 450 years ago with the Spanish Galleon trade between Acapulco and Manila), or free trade (if it is actually free trade and not some World Trade Organization monstrosity) is not a problem nor is it a problem for the US - removing obstructions to trade can only improve living standards. It would take hundreds of pages to fully outline what has brought the USA to where it is today but to state it as briefly as possible, the great majority of the problems in the US today derive from the one thing that most Americans today believe is what their country is "all about": Democracy.
Democracy is Destroying the US
The idea that conceived America was freedom and liberty, not democracy, although you'd never know it by listening to the average American today or the political leaders who occupy foreign lands in order to "spread democracy".
Most of the fathers of the constitution believed democracy was the biggest threat to it, and endeavored to prevent it, but the flaw was that their constitution still conformed to it.
Any constitution is insufficient to restrict the scope of a government operating under the democratic principle. The problem is precisely that democracy, or the democratic republic, defined as the system of elected representative who don't 'own' government or have any stake in it beyond their short stint, is at odds with freedom and corrupts the electorate.
Democracy has taken on an idealistic form that has replaced classical liberalism as a goal - not merely a technical form of government but as an end unto itself.
And now many Americans are realizing something is very wrong with their country - which is good to see. But because they have such a limited understanding in what the original founders of America created and have had so much propaganda fed to them their whole lives through the government run education system and the mass media which is almost completely in bed with the government, they continue to reach flawed conclusions.
The Tea Party, for example, claims to want to return to honor the Constitution as constructed by its framers. But clearly it didn't work before and the solution is not to revive it. It is flawed in actuality on many counts.
As example of how the US Constitution has been corrupted, listen to the first minute of this speech by US Supreme Court Justice, Andrew Napolitano, on YouTube (http://www.youtube.com/watch?v=7n2m-X7OIuY). Here is his exact quote:
"The other day I had a piece in the Wall Street Journal about whether or not the Congress could, under the Constitution, regulate healthcare. Obviously it can. Healthcare is not mentioned in the Constitution. The framers (of the Constitution) had doctors, the framers had hospitals, the framers got sick, the framers needed healthcare. It was beyond their wildest imaginings that they would be able to create a government that would somehow be able to regulate this kind of human behavior."
Just the fact that Napolitano wasn't laughed off stage is proof enough that any chance the US Constitution had at succeeding has long been lost.
What the American people would do well to understand is the difference between democracy and freedom, and recognize that it is the latter that should be credited with all the progress of history. The US doesn't have real democracy nor should it want it, but what it has is big government controlled by a handful of elites that operates under the democratic lie in its own interests.
Only by disposing of democracy can government be restricted. Americans were fooled by Alexander Hamilton in the past. He explicitly wanted big government and the route he took was to indebt the government. He favored an expansion in government debt and a central bank to underwrite it. It was because of this debt that the income tax and the Federal Reserve arose in 1913.
Americans were able to keep central banking out of the US until then because the government and the progressive movement were relatively small before the civil war. It was the subsequent growth in the powers of a central government (ill gotten through democratic demagoguery) that created the need and desire (by the new privileged elites) for a central bank.
The Federal Reserve is Destroying What's Left of the USA
Which brings us to the Federal Reserve, which came about as a result of the democratic system and has impoverished the US over decades and continues to do so.
Central banking offers no benefits to society at large and contributes, mostly through the process of inflation, to numerous serious problems. The following are just a few of the issues engendered by central banking and inflation:
- It hinders economic calculation and causes capital consumption and malinvestment
- It taxes fixed income earners (savers and fixed wage laborers)
- It discourages saving or forces savers to take more risk
- It encourages general consumption and debt
- It benefits debtors (especially government), speculators, politicians, lobbyists, and fractional reserve banks
- It produces the business cycle -boom/bust sequence
- It rewards corruption and corrupts morals
- It causes capital decumulation (the formation of capital in reverse) due to several of the above
- It bolsters the growth of government and therefore the trend toward decivilization
- And if not abandoned it can result in a crisis of confidence, total impoverishment and chaos
By continually manipulating interest rates away from their natural free-market level central banks distort the pricing mechanisms by which entrepreneurs, businesses and consumers make decisions. This continual distortion results in massive amounts of wasted resources as capital gets invested in unsustainable areas and soon after that capital is destroyed. Row after row of empty houses in Florida, Nevada and Arizona are excellent such examples of capital that was put to work in the wrong area because people were fooled by artificially low interest rates into believing there was a large need for new housing.
This boom and bust process has been recurring over and over for decades now and the boom/bust cycle is now accelerating as the system nears collapse. This continual boom/bust cycle and massive amount of malinvestment has destroyed trillions of dollars in wealth and is the real reason why the US is in such terrible shape today.
Yet, despite decades of impoverishment caused by the Federal Reserve, who is it the American public look to in order to fix the problems? Unbelievably, they look to Bennie and the Feds.
The Return to Gold
What we are now witnessing is the collapse of the artificial central banking financial system and much like the collapse of the Soviet Union in the late 90s we are now witnessing the collapse of the USA. The big difference between the collapse of the USSR and the collapse of the USA is that the US dollar is the reserve currency backing every fiat currency in the world today.
Therefore the collapse of the US dollar will have massive repercussions worldwide and that is one of the main reasons why gold is and will continue to head higher in terms of all fiat currencies over the coming months and years.
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© 2010 Copyright Jeff Berwick - All Rights Reserved
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