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Jim Cook



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

Commentary Of The Month
July 17, 2009
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By Bill Buckler

The increase in the US "savings rate" is, of course, headline news everywhere. But arrears on loans of all descriptions have been setting new records every month and show no signs of slowing down. The biggest cause of this is job losses, but many people are still using whatever credit is still available to them to pay day to day expenses, even as they cut those expenses to the bone. Throughout the US, homelessness is setting records. With state-provided facilities already full, people are being put up in empty hotels, motels and "trailer courts" all over the US, many spending up to 80 percent of total income on rent.

Does any of this sound like "welfare" to you?

The culprit is the welfare state, or more precisely the means resorted to in order to make the welfare state possible. The man who gave "legitimacy" to the modern practices of government intervention by means of credit creation, John Maynard Keynes, put it like this in 1919, early in his career: "There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose."

Keynes was right. The "existing basis of society" which Keynes grew up in was one of political and economic freedom supported, as all political and economic freedom must be, by SOUND money. There was no welfare state (or one minimal by today's standards) in the UK or US simply because government could not afford one. It was only just getting started on the road to a debauched currency. The end of the road was reached when all global money became nothing more than a glorified IOU in 1971. That marked the end of the rise in the standard of living of the "huddled masses" everywhere. Today, the "people" are broke, business is broke, all "secondary" levels of government are broke. The only step left to be taken is the financial collapse of national governments.

One of the most painful outcomes of this century-long obsession with the "miraculous" powers of government is that at the end, we are left with the "huddled masses" once again. Sadly, there is no other outcome in prospect for those who choose to rely on government for their "welfare".

A Debauched Currency:

This is THE issue. It is the one which all the Heads of State Summits keep sidestepping. It is the one which has called forth all the suggestions that the US Dollar be "dethroned" as the global reserve currency. It is the issue which, sooner or later, will have to be faced.

The longer this discussion is postponed - the worse the situation which will have to be faced becomes.

"One Man - Or Woman - In A Million":

"Diagnosing" the system made possible by currency debauchment is not particularly difficult. It has been done concisely and precisely by eminent economists and students of politics and history for centuries past. Stripped down to its barest and most basic fundamentals, it resides in such "folk sayings" as:

"Nobody gets any if there ain't none."
"TANSTAAFL - There Ain't No Such Thing As A Free Lunch."
"Put not your faith in Princes!"

Here at The Privateer, we have been doing all we can to turn our subscribers into that "one man - or woman - in a million" for almost 25 years. Many other eminent newsletter writers have been doing the same, some for longer than we have. The antithesis of a "welfare state" is a state of economic freedom and political liberty based on sound money and unhampered markets. There is no middle ground. If the last two years have benefited men and women in any way, they have done so in awakening in many of them the beginnings of a realisation that giving up freedom for "security" is a sure means of ending up with neither. The lesson has been taught before in history, now it is being taught again.

The most important thing that any of us can do to protect ourselves from the collapse of the welfare state is to remove from our lives, as far as we possibly can, ANY reliance on government for ANYTHING. Above all, do not look to government for any grants, loans, subsidies, transfer payments, restraint on competitor's trade or anything else which is an infringement on the functioning of the only real market there is - the FREE market. A mass refusal to accept these "services" would hasten the day when they would no longer be "rendered".

 2009 – The Privateer
(reproduced with permission)

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