Being Sovereign
"I'll tell you what I think about the way
This city treats her soundest men today;
By a coincidence more sad than funny,
It's very like the way we treat our money.
The noble silver drachma that of old we were
So proud of, and the recent gold coins that
Rang true, clean-stamped and worth their weight
Throughout the world, have ceased to circulate.
Instead the purses of Athenian shoppers
Are full of shoddy silver-plated coppers
Just so, when men are needed by the nation,
The best have been withdrawn from circulation."
- Aristophanes, "The Frogs," 400 BC
It is one of history's oddities that we call this particular property of free market money described by Aristophanes in 400 BC by the name "Gresham's Law" although Sir Thomas Gresham lived about two millennia later. Naturally, we'll want to discuss free market money further along in this report, in the usual place.
Meanwhile, it was a property of men, as well as money, that Aristophanes was highlighting. Where have all the good men gone? Are Americans really faced with a choice between a white, male, Yale graduate, Skull & Bones Society initiate, military veteran of doubtful distinction, from a wealthy family, who has never been elected to the White House by a majority of the people, and another of the same?
Of course, voting is pointless not only in this situation, but also in all other situations. As George Carlin has pointed out, "I don't vote. I don't consent to be governed." In a recent interview, Carlin made the point that "If you vote, you don't get to [gripe]." After all, the deal is well understood: if you vote you are agreeing to accept the outcome of the election, whether or not that outcome is the will of the majority of the people or the majority of the Supreme Court.
"Don't Blame Me. I voted for none of the above!"
There are minor party candidates, including a Constitution Party candidate, a Libertarian Party candidate, and Ralph Nader who has been a Green Party candidate, two of whom are among the best of men. But these men aren't willing to subject themselves to the limitations of the two major parties, and, by running as third party candidates have effectively withdrawn themselves from contention for the race for president, if not from circulation entirely.
Voting has other deficits. It is certainly immoral, in that voting is the delegation of force. Politicians invariably tax someone, draft or coerce others, and impose laws or decrees that function as initiatory force. Voting is certainly a poor way of taking choices, since the majority is rarely well informed and even more rarely correct about any matter.
Of course, voting would be more common if it were at all clear that the votes were being counted. Most of the 100 million or more Americans who are qualified to vote and chose not to vote in the year 2000 did so because they didn't think their vote made a difference. Many of them didn't think their vote would even be counted.
And for good reason. Machine politics control most major cities and many rural counties. It is a widely accepted fact that the 1960 election of John F. Kennedy would not have been possible if the dead had not voted in Chicago and South Texas, overwhelmingly Democratic as it would happen. We've met a man who voted six times in the 1960 election in Chicago, who is proud that he did his part for the party. William F. Buckley once commented on his television show "Firing Line" that he had an uncle who was a sheriff in South Texas who was such a good Democrat that he voted for LBJ for the Senate in 1948 and 1954, in spite of the fact that he had died in 1947.
Vote fraud was a major motivation in the 1993-1995 Atlantis Project. Both Eric Klien and Chuck Geshlider were aware of the vote fraud perpetrated against Tamara Clark who probably won the election for the state legislature from Clark County, Nevada (Las Vegas), but was almost certainly cheated of election. Among other irregularities, the culinary union hall brought forth bundles of absentee ballots, each bundle having 100 ballots all marked exactly alike, Klien noted. Boxes of evidence of vote fraud were presented to the state senate committee tasked with overseeing fair elections. The chairman of that committee chose to adjourn the session without considering the evidence because the committee members were very tired.
In the 1998 election in Texas, no less a source than the Texas Republican Party identified some 206 instances of vote fraud and abuse. To our knowledge, not a single one of these instances has been positively resolved. So "don't vote, it only encourages them."
A system which is evidently operated on the basis of vote fraud, which bears no important resemblance to the republic of limited powers described in the constitution, and which routinely embarrasses, brutalizes, steals from, and kills its people cannot be expected to gain the loyalty of the best nor the brightest. Rather, the property Aristophanes identified 2400 years ago is still very much in operation. The best have withdrawn from circulation, or been forced into hiding or retirement, because the worst are not willing to accept limitations on their power.
Of course, since the productive and competent are under no obligation to provide leadership or opportunity to anyone else, there is no great loss here. The decadent and corrupt go on running major countries and will do so until a crisis beyond their meager talents to correct.
In the absence of such a crisis, one or more may be manufactured. These artificial crises will be portrayed as evidence that yet more power must be centralized, yet more control must be exerted, and yet more freedom must be denied. The system will continue to become more and more rigid until it fails. Fortunately, that day is not far off.
As with the fall of the Roman Empire, the fall of the American Empire will be celebrated in many places. Its fall will bring about a flowering of arts, science, technology, and commerce that will dwarf everything that has come before. In five centuries, people will lie about this great period of prosperity and perhaps call it a Dark Age. Those of us fortunate to live through it will know it for something far greater.
Free Market Money
"Bad money drives out good money."
- Sir Thomas Gresham, c. 1588
"It would be more correct to say that the money which the government's decree has undervalued disappears from the market and the money which the decree has overvalued remains."
- Ludwig von Mises
Human Action:
A Treatise on Economics, 1949
Something excellent has happened. The government no longer decrees the value of gold or silver. While various attempts to intervene in the free market still occur, as discussed in previous issues of this report, the fact is that the market is pricing gold and silver. The attempts to keep the price of silver and the price of gold at fixed exchange rates to the dollar was essentially finished before Nixon closed the gold window in 1971. The fact of market pricing was admitted in that final act of debasement. Since 1976, Americans have once again been free to own gold, eliminating the last vestiges of a failed economic policy.
If the price of gold and silver is not artificially under valued by governmental decree, then gold and silver remain available as money in direct competition to artificially overvalued fiat dollars. This fact, combined with the fact we discussed last week, that you are under no obligation to accept fiat dollars, provides the necessary economic underpinnng for the free market money economic system that is now arising.
Ultimately, attempts to control the price of gold will fail, for the same reasons they have always failed historically. The price of gold cannot be controlled in the free market through market operations of buying and selling. All that can be produced through market operations is a more rapid alignment of prices to actual supply and demand. Indeed, it is the capitulation of the government to the free market which spells the doom of its manipulation efforts.