Archive for March, 2013

Government agents should be subject to the same laws as everybody else. It is bad enough that Congress frequently exempts itself from the laws they expect the rest of use to comply with.

Battlefield America - A Government of Wolves

In its ruling in Millbrook v. United States, a unanimous U.S. Supreme Court has concluded that the U.S. government may be held liable for abuses intentionally carried out by law enforcement officers in the course of their employment. The Court’s ruling dovetails with arguments put forward by The Rutherford Institute in its amicus brief, which urged the Court to enforce the plain meaning of federal statutes allowing citizens to sue the government for injuries intentionally inflicted by law enforcement officers.

In striking down lower court rulings, the justices held that the courts had erred in dismissing a prisoner’s lawsuit alleging that three prison guards had brutally and sexually assaulted him. The lower courts justified their ruling under the Federal Tort Claims Act (FTCA), which allows individuals to sue the government for misconduct by law enforcement officials only if the injury inflicted occurs while the officers are in the…

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The reason that the EU is redefining depositors in banks as lenders is so their deposit is seen as an investment and is subject to risk in the same way as the banks. So if a depositor is reclassified as a lender, it means they cannot expect to receive back the full value of their deposits in case the bank experiences difficulties.” –Dr. Paul Craig Roberts

Finance is now a criminal enterprise”.  Jim Sinclair

Cash out, take the tax hit”. “If QE fails the next large pool of money they have easy access to are pensions and IRA’s.”  Jim Sinclair

If the USD goes to 72.00 or below, the Fed may cease QE and go directly after pensions and IRA’s Jim Sinclair

There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner – as a result of voluntary abandonment of further credit expansion; or later, as a final or total catastrophe of the currency system involved.  -Ludwig von Mises


The great French economist Frédéric Bastiat penned a famous warning that has unfolded numerous times in history yet continues to go unheeded in our current time when its fulfillment is most striking.

It is impossible to introduce into society a greater change and a greater evil than this: the conversion of the law into an instrument of plunder.

In Bastiat’s most famous writing “The Law” he lays out the purpose of law, its perversion into something else, and the consequences of doing so.  It is basic 101 for economics, law and morality.  Embellishments in red, emphasis mine.

  • Man can live and satisfy his wants only by ceaseless labor; by the ceaseless application of his faculties to natural resources. This process is the origin of property.
  • But it is also true that a man may live and satisfy his wants by seizing and consuming the products of the labor of others. This process is the origin of plunder.
  • Now since man is naturally inclined to avoid pain — and since labor is pain in itself — it follows that men will resort to plunder whenever plunder is easier than work. History shows this quite clearly.
  • When, then, does plunder stop? It stops when it becomes more painful and more dangerous than labor.
  • It is evident, then, that the proper purpose of law is to use the power of its collective force to stop this fatal tendency to plunder instead of to work. All the measures of the law should protect property and punish plunder.
  • But, generally, the law is made by one man or one class of men. And since law cannot operate without the sanction and support of a dominating force, this force must be entrusted to those who make the laws. This force is necessary or the violation of law has no consequences, thus making it meaningless.
  • This fact, combined with the fatal tendency that exists in the heart of man to satisfy his wants with the least possible effort, explains the almost universal perversion of the law.
  • Thus it is easy to understand how law, instead of checking injustice, becomes the invincible weapon of injustice.
  • It is easy to understand why the law is used by the legislator to destroy in varying degrees among the rest of the people, their personal independence by slavery, their liberty by oppression, and their property by plunder.
  • This is done for the benefit of the person who makes the law, and in proportion to the power that he holds.
  • Men naturally rebel against the injustice of which they are victims. Thus, when plunder is organized by law for the profit of those who make the law, all the plundered classes try somehow to enter — by peaceful or revolutionary means — into the making of laws.
  • According to their degree of enlightenment, these plundered classes may propose one of two entirely different purposes when they attempt to attain political power: Either they may wish to stop lawful plunder (resulting in a Constitutional Republic), or they may wish to share in it (resulting in a Democracy which is an intermediate step towards tyranny).

The American Republic will endure until the day Congress discovers that it can bribe the public with the public’s money.”  Alexis de Tocqueville

  • If the people are unenlightened then a democracy forms, thus: Instead of rooting out the injustices found in society, they make these injustices general. As soon as the plundered classes gain political power, they establish a system of reprisals against other classes. They do not abolish legal plunder, but greatly expand it.

Remember, democracy never lasts long. It soon wastes, exhausts, and murders itself.  John Adams – on why were are a constitutional republic

  • In the first place, it erases from everyone’s conscience the distinction between justice and injustice. This happens when ever the law now becomes uncoupled from morality.
  • When law and morality contradict each other, the citizen has the cruel alternative of either losing his moral sense or losing his respect for the law. These two evils are of equal consequence, and it would be difficult for a person to choose between them.
  • The nature of law is to maintain justice. This is so much the case that, in the minds of the people, law and justice are one and the same thing. There is in all of us a strong disposition to believe that anything lawful is also legitimate.
  • This belief is so widespread that many persons have erroneously held that things are “just” because law makes them so.  This was true of the Nazis and was part of their common defense at Nuremberg during war crimes trials.

The more corrupt the state, the more numerous the laws.”Tacitus

My corollary for our time is…

When people cry for more regulation it is because they have lost the ability to govern ourselves.

Only and banks with the cooperation and protection of government are capable of widespread, large scale plunder.  But this has been going on for years.  People do not realize that low interest rates is a transfer of wealth from you, the individual to the ruling class, be they the government bureaucrat, public sector union, or the bankers and the favored multinational corporations.

Example: Bureau of Lying Statistics says inflation is a per 2%.  But use the same criteria that was used in 1980 when food and energy were part of the equation and it rises above 9%.  I know of wealthy family members who have large savings gaining 1 to 2% each year in interest, yet in reality they are losing 7-8%.  By saving in the traditional way you are losing 7-8% of your wealth yearly.  Or better said, the government and its central bank are gaining it via inflation and deceit.


The point is that until now, increasingly insolvent governments and the central banks that support them have been content with theft by inflation.  Now, however, as sovereign debt escalates as a result of the democratic-socialist paradigm, the welfare state, endless wars, etc., they are becoming more desperate.  And they will burn you for tinder if they need to.  You are their cash-cow to be milked, or if need be, slaughtered, because when it comes down to your survival or the survival of governments and banks, guess who they will choose.

Architect of Ignorance

Architect of Ignorance

The ignorant say it can’t happen here.  Cyprus is nothing to us (most could not find it on a map).  They are ignorant of history and they worship government, the institution that has lied, plundered and murdered more than all other institutions combined.

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Besides that fact that pouring forth from the lips of any government official is a continual stream of lies, governments are also experts at theft and plunder.

For some reason, politicians think that theft is OK as long as it is done legally.  Of course, this was the primary defense used by NAZI officials at Nuremberg.  They were only doing what was “legal”, they were just obeying the law and carrying out orders and going their duty and discharging the obligations of their office, etc.  It is legal because politicians pass a law saying it is legal.  Brilliant, at least to the mind of the bureaucrat, who only executes the legalized crime of our “betters” against the citizens who are mere cows to be milked and butchered.

Case in point, Cyprus.  Government spends way to much money on their little socialist utopian welfare dream state causing the usual misallocation of resources.  They make promises they cannot keep as well as introduce other economically unsustainable problems.  The banks buy their bonds.  Interest comes due.  Government wants to spend more so they barrow more to spend and cover the interest due.  The cycle repeats.  Taking out one more credit card to pay the others off is not a good idea.  Tried it myself a few years back.  Doesn’t end well.

So now the Cyprus government and their bedfellows (as always) the banks are insolvent.  Gee, go figure.  Thank you very much John Maynard.

So they need a “Bailout” from the ECB.  And what does the European Central Bank and the northern nations of the EU want as collateral?  How about passing a law allowing the Cyprus government to take 10% of the savings of everybody who has money in the Bank of Cyprus!  They call it a TAX.  It is theft plain and simple.  You think that the USA is any better off?  Nice matrix you live in Mac.

Read more about this potential black swan bu visiting David Schectman’s excellent and free newsletter…

The Black Swan Event That Turns Everything Upside Down


The Holter Report: Cyprus – This is a disaster on so many levels I can’t even count them all.

Andy Hoffman: Emergency Podcast with Kerry Lutz

Jim Sinclair: …[W]e have just witnessed one of the most important events in history and it will have a major impact on the gold market.

John WilliamsShadow Government Statistics

LeMetropole CafeWill The Cyprus Bailout Trigger The Next Financial Crisis?

Rick AckermanTiny Cyprus Re-Opens Europe’s Can of Worms

and a special one you won’t want to miss, the coming main event…

Jim WillieThe biggest asset bubble in history is preparing to pop. The US Treasury bonds have all the earmarks of a disaster waiting to happen, a crushing bust.

Danger, Will Robinson.

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The true reasons for, and meaning of, the 2nd Amendment can easily be found in the Declaration of Independence and the events surrounding the attempt to disarm the colonialists by the tyrant King George.

The famous “shot heard ‘round the world” initiating the battle of Lexington and Concord, where British soldiers were fired upon, was because they were coming for the bullets and power of the colonialists.  It was an attempt to disarm them, to put them in a position of defenselessness, to remove their ability to resist the plunder, injustice and usurpation of rights that was increasingly being levied upon them by the British crown.

Of course, it should be noted that the first noise coming from the Obama administration was about limited the purchase of, adding taxes on, or recording the sales of bullets.  Several ideas were batted around initially.  But the similarity between the depot King George and the communist-fascist hybrid government, run by what may be considered as the sociopaths in Washington, is quite obvious.

Our founding document, The Declaration of Independence, gives the general reason for the 2nd Amendments existence in the Bill of Rights (the first ten amendments to the Constitution, which is our governing document).  The founding document precedes the governing document as it should.  It is the reasons for the other’s existence.  Without the founding document, the governing document would appear arbitrary, even capricious, and perhaps might never have come to be.

The reasons for the 2nd Amendment can be found in the first paragraph in two clauses.

That whenever any form of government becomes destructive to these ends, it is the right of the people to alter or to abolish it…

But when a long train of abuses and usurpations, pursuing invariably the same object evinces a design to reduce them under absolute despotism, it is their right, it is their duty, to throw off such government…

First it should be noted that this is the right of the people.  The state, in whatever form it may be found, is composed of individuals, i.e., the people.  And it is an individual that has rights, not the state except by extension.  Without individuals there would be no state (government).  The people are not the government.  The people in our founding and governing documents are the sovereigns.  The the elected officials are not, nor are the appointed judges, nor the faceless bureaucrats.  Neither are the individual states themselves sovereign over the individual, but were intended to be safe guards against the usurpation of rights by an overreaching Federal or central government.  Aside from the specific powers granted by federal government, everything else was left to the states and its people, who were to be sovereign over the states, i.e., they had rights that the state could not violate so the two clauses above applied to the individual states also.

First, we must ask what does it mean “whenever any form of government becomes destructive to these ends”?  The reference to any form of government plainly means that this phrase does not only refer to King George but to all governments everywhere and at all times.

The noise coming from the socialist, progressives, journalists, and our intellectual elite Marxist educators would have us believe this does not apply to our own government.  I have read this a number of times.  It is falsely stated that since our Constitution does not give the people the right to cast off the federal government, that they are under obligation to obey it.

It is a falsehood put forth by those who wish to promote big government (the very thing the founding fathers feared), and to eliminate the right of the people to abolish the same.  But the Constitution does not grant rights, it only acknowledges them.  That is why it uses the term “unalienable”, “self-evident” and “endowed by their Creator”.  All self-evident truths, all unalienable rights do not arise from the government nor are they granted to us by the Constitution.  They are pre-existing.

However, government as it grows in power always seeks the employment of intellectuals and media to provide justification and to dispense propaganda to cloak its expansion by claiming some “need”.  Expansion, of course, requires money which means taxes, inflation or both.

Ludwig Von Mises, Murray N. Rothbard and F. A. Hayek have pointed out this very thing numerous times in their writings particularly in “Bureaucracy” and “The Road to Serfdom”.  Our government employs intellectual shills and propaganda experts to obfuscate the plain meaning of words and to hide or distract one from coming to a conclusion that these words would drive you towards.

The other segment “becomes destructive to these ends” requires that we ask; what ends are we talking about here?  The ones numerated are “Life, Liberty and the pursuit of happiness.”  The phrases about throwing off the current system of government from the Declaration are why 2nd Amendment exists.  It is there so the people can prevent governments from becoming destructive of these ends, or if not, to overthrow (throw off) and end it so they can “provide new guards for their future security”.   This, the Declaration of Independence says is not only their right, but it is their duty.  No matter how apoplectic Chris Mattrews gets, this remains the duty of the patriot.

But the noise from shills like Thom Hartmann, Sam Sacks, The Daily Kos, and other mouth pieces aligned with the federal government would have us believe that the militia, and the 2nd Amendment is there for the protection of the government.  That no individual right to bear arms exists it is said.  Somehow in their minds, collectives have rights that individuals do not.  Yet the rights that the Declaration lists are the liberties of individual.  The Constitution was designed to protect an individual’s liberties by placing severe limits on the federal government.  The militia and the people’s right to bear arms were designed to protect and secure a free state, not a tyrannical one.

Now both congress and the executive can call upon the state militias to execute the laws of the union (legitimate constitutional ones), to put down insurrections (active and open opposition to a legitimate law, again a constitutional one) and to repel foreign invaders.  (For a full discussion, see here http://causeofliberty.blogspot.com/2011/11/call-forth-militia.html ).  But this does not take precedence over the clauses in the Declaration.  The Government is only legitimate when it stays within the boundaries placed upon it by the constitution.  The use of the militia by the federal government must align with the securing of the rights and liberties acknowledged in the Declaration of Independence and not simply to serve the interests of the federal government.

The militia is there to protect the liberties of men and to preserve a government that promotes and protects the same.  When the government, state or federal, becomes hostile to and impinges upon the rights enshrined in the Constitution; then government is moving towards tyranny.  A government seeking to expand its control and curb the liberties of individual citizens is a government moving away from a “free state” and towards a tyrannical one.

The noise from the collectivist left is that there is no individual right to bear arms, only the collective which is to serve the government and protect the same.  This is simply perversion.  But this is what one should expect from people who, knowingly or not, promote despotism, the enslavement of the individual, the state as god, and the belief that rights are granted and can be taken away by the socialist run, ever expanding state.  Governments are the great mass murderer of history.  Infringement is the precursor to slavery and genocide as it always has been.

Things to think on…

The ultimate basis of an all-around bureaucratic system is violence.  Ludwig von Mises

“The American Republic will endure until the day Congress discovers that it can bribe the public with the public’s money.”  Alexis de Tocqueville

“It is not true that the legislator has absolute power over our persons and property. The existence of persons and property preceded the existence of the legislator, and his function is only to guarantee their safety.”  Frédéric Bastiat, “The Law”

“When governments fear the people, there is liberty. When the people fear the government, there is tyranny. “  John Basil Barnhill

“Society in every state is a blessing, but Government, even in its best state, is but a necessary evil.”  Thomas Paine

It is impossible to introduce into society a greater change and a greater evil than this: the conversion of the law into an instrument of plunder.  Frédéric Bastiat

“The more corrupt the state, the more numerous the laws.”  Tacitus

“It will be of little avail to the people that the laws are made by men of their own choice if the laws be so voluminous that they cannot be read, or so incoherent that they cannot be understood.” – James Madison

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Reposted from The D.C. Clothesline…


Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote. -Benjamin Franklin

Although some of the quotes are bogus, the point of a limited government our founding fathers were striving for and the bloated, overreaching, constitution violating one we have today seeking to enslave its citizens and the world via petrodollar hegemony are very different.  The later clearly falls in what the Declaration of Independence referred to as “That whenever any form of government becomes destructive to these ends, it is the right of the people to alter or to abolish it and spells out our duty as in “it is their right, it is their duty,to throw off such government, and to provide new guards for their future security.”

If They Come for Your Guns…(read the entire article by clicking here)

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