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Jim Cook

 

RUNAWAY SOCIAL SYMPATHY

Every once in a while I switch the TV channel from Fox to CNBC to see what the liberals are saying.  After listening awhile I get a deep sense of hopelessness and foreboding for our country.  The most important thing for the left is giving money to people.  They are happy to see the growth of food stamps, disability payments, housing subsidies, free healthcare and all the other welfare benefits.  They utterly fail to see the damage it is doing to the recipients.  Whole cities that once flourished have deteriorated into rotting eyesores populated with shambling hulks of chemically dependent drones.  These people are no longer employable.  They have become incompetent and helpless and the liberals can’t see that it’s their doing.

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The Best of Jim Cook Archive

 
Best of Bill Buckler
January 20, 2011
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If the US or any nation in the world is ever going to truly return to an era of
LIMITED government, there is one pernicious practice (among many others) that MUST be knocked on the head. That is the practice of a government running up a debt. Radical? In today’s context, extremely.

Strip the legitimate (and the illegitimate) functions of government down to the bone and you will see that they are all dependent on one thing. That is the legal monopoly vested in government to use force. Legitimately, governments are necessary to preserve, protect and defend the lives and property of their citizens. That is their ONLY legitimate function. A government which performs only those functions is a limited government. A citizen who does not transgress against the lives and property of their fellows will have only one contact with government and that is to pay his or her share of the cost of the government.

The functions of governments are not cost free - but no government produces ANYTHING in the way of real wealth. A limited government merely performs the vital task of protecting those who do produce wealth from the potential rapaciousness of those who don’t. The issue here is not how such a government should be paid for. The issue here is whether it is sensible for a government which relies totally on the use of force for its functioning to be able to spend more than it taxes or charges its citizens.

Since a government produces no real wealth, it has no means to LEGITIMATELY service and ultimately repay debt. And since it cannot and does not produce wealth itself, its only recourse is to TAKE it from those who do produce it. A government which goes into debt is no longer a LIMITED government. If its debt is to maintain any facade of being viable, the government must have the power to strip the means of servicing and repayment from those who have it. And the bigger the debt, the bigger the shakedown and the bigger the unchosen burden on future generations.

In the case of the US - the funded debt of the Treasury has increased about fourteen thousandfold over the past century. The unfunded promises to future generations - which did not exist a century ago – have increased many times more than that. It is now generally known by most people that the debt will never be repaid. No government which has gone into debt has ever repaid it with funds that equal the purchasing power of the funds borrowed in the first place. How could they? They produce NOTHING.

Sovereign Debt Can NEVER Be Repaid:

Wherever you live in the world, you are pushing a huge rock uphill. You and I live in a world whose money, markets and financial system is TOTALLY dependent on the debt issued by government. In any form of rational economic definition, a debt is a deferred and therefore an UNFINISHED transaction. It cannot be completed until the principal plus interest incurred in its issuance have been repaid in full – and in money which retains the purchasing power of that which was borrowed to incur the debt.
No government debt has ever been or can ever be repaid in full. This is especially the case when a government imposes a monopoly on what can be used as money by passing and enforcing “legal tender” laws. The US did this with the introduction of the Fed in 1913. Eventual default becomes an absolute certainty when government makes its own debt paper the ONLY “reserve” behind the “money” it alone can create. The US did this under President Nixon in 1971. The whole world went along with it because the US Dollar was the reserve currency and no government or people anywhere dared jettison it.

The result is the global financial quagmire we see everywhere we look.

If there is going to be any progress towards a REAL solution to this mess, a necessary step is the recognition that governments MUST live within their means. Any social entity which must monopolise the use of force as a pre-requisite for its existence CANNOT be allowed to use that force to augment its power. That is what government debt always does, until the day comes when it collapses in ruins.

 

Ó 2009 – The Privateer

http://www.the-privateer.com

capt@the-privateer.com

(reproduced with permission)

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