Tag Archives: tarp

The U.S. Constitution: The 18th Century Patriot Act

Continental_Congress_prayerAt some point in the past, the American ethos was centered on suspicion of government –whether liberal, conservative, or otherwise. For most of America’s first two centuries, Americans were taxed less, regulated less, and left more alone by their government than any other people in the world. These conditions resulted in an explosion of innovation, wealth, and culture unsurpassed at any time in human history.

As that trend seems to have reversed, Americans look to their past to try to establish where we have gone wrong and what we can do to solve our problems. Increasingly, some Americans point to the U.S. Constitution and our abandonment of its “limits on government” as the reason for our downfall. It is generally argued by “strict constitutionalists” that the purpose of the U.S. Constitution was to limit the power of the government. Nothing could be further from the truth.

Don’t get me wrong. If our government were limited to the powers granted it in that document, the United States of America would be far freer, far more prosperous, and likely not facing any of the monumental problems that it is facing now. However, that does not change the facts about why the Constitutional Convention was called or why the Constitution itself was created. If you are astounded that any Republican can still claim that George Bush was “pro-freedom” or that any Democrat can claim that Barack Obama is “anti-war,” you should be equally surprised that anyone can claim that the U.S. Constitution limited the powers of the central government.

Remember that there was already a federal government of the United States prior to the U.S. Constitution. It was defined in a document called the Articles of Confederation and had been in existence since 1778. Under the Articles, the young nation had defeated the mightiest military empire in human history to win its independence. Acknowledging the true meaning of the words “federation” and “federal,” the document defined the relationship between the states as “a firm league of friendship with each other.” There was no implication that the United States was one nation and the several states merely subdivisions within it. There was no president to usurp power. There was no Supreme Court to legally sanction tyranny. There was no IRS. While the federal government would pay for any war fought by the federation out of a common treasury, the Articles left the actual act of taxation to the States.

“The taxes for paying that proportion shall be laid and levied by the authority and direction of the legislatures of the several States within the time agreed upon by the United States in Congress assembled.”[1]

Compared to the overtaxed, overregulated society that is America today, the America of the 19th century was one of astounding liberty and prosperity. However, even America after 1787 had much more government than America in its first decade. We are taught that this was a grave problem and that the Constitution was necessary to avoid imminent destruction from any number of horrors, including invasion by a foreign power, civil war, or economic upheaval as a result of protectionism by the states. We accept these assertions as facts because of the reverence we hold for the founders of our country. However, how different was the atmosphere surrounding the Constitutional Convention from that surrounding the Patriot Act, the TARP bailout, or the current efforts to expand government power in the name of environmentalism? Despite the pure heresy of the idea, there was really no difference at all.

By 1787, there were two dominant parties in America. Unlike the two dominant parties today, the Federalists and what would later become the Democratic-Republicans of that time really were diametrically opposed on fundamental issues. Led by Alexander Hamilton, the Federalists sought a much more powerful central government with a central bank, a standing army, and an alliance with big business that would control the economy. In opposition to them were Thomas Jefferson, Patrick Henry, and their followers that believed that the central government’s powers should be limited, and that power should be concentrated locally (and mistrusted generally). They opposed a central bank and a standing army and supported a truly free market.

It was not Thomas Jefferson or Patrick Henry that led the effort to call the Constitutional Convention, which neither even attended. It was Hamilton and his Federalists that wanted it. As superbly documented in his book, Hamilton’s Curse, Thomas Dilorenzo reminds us that Hamilton actually wanted even more power for the central government than he eventually got into the Constitution.

“At the convention, Hamilton proposed a permanent president and senate, with all political power in the national government, as far away as possible from the people, and centered in the executive. He also wanted “all laws of the particular states, contrary to the constitution or the laws of the United States [government], to be utterly void,” and he proposed that “the governor…of each state shall be appointed by the general government, and shall have a negative [i.e., a veto] upon the laws about to be passed in the state of which he is governor.”[2]

Read the rest at LewRockwell.com…

 

[1]  Article VIII, Articles of Confederation

[2] Dilorenzo, Thomas Hamilton’s Curse Crown Publishing Group (Random House) New York, NY 2008 Pg. 16

Tom Mullen is the author of Where Do Conservatives and Liberals Come From? And What Ever Happened to Life, Liberty and the Pursuit of Happiness? Part One and A Return to Common Sense: Reawakening Liberty in the Inhabitants of America.

>Putting Some Lipstick on the Bailout Rip Off Pig

>I’m not sure what is worse: having your life savings and future stolen by armed criminals or having to endure the charade of a Congressional debate that attempts to portray the theft as something that is in the best interest of the victims. In case you have become distracted by all of the theater, allow me to state clearly what is happening right now. The federal government has taken the “liberty” of confiscating trillions of dollars from the citizens whose property they have sworn to protect. This has been done for no other reason than to prop up their failed monetary system so that they can continue to siphon off the wealth of the productive members of society – rich, poor, and middle class alike – and direct it to the privileged few who would not prosper in a truly free market. Regardless of the endless minutiae that is thrown at the American public over the next several days, weeks, or months, this is the REALITY of the government’s response to the predictable meltdown of their socialist monetary and financial system.

If a little diversion is necessary to distract people when an ordinary crime is being perpetrated, then obviously an extraordinary diversion is needed when you are perpetrating the greatest heist of all time. In this respect, for once, our federal government did not let us down. It began routinely enough, with Chairman “Mao” Bernanke attending a hearing in Congress to answer questions on the details of the heist, including how the loot would be split up, etc. Of course, it was immediately assumed by all in attendance that the bailout was going forward. So, in an attempt to appear to be “fighting for their constituents,” many of the Congressmen began arguing for a clause in the bill that would limit the compensation of CEO’s of companies that made use of the stolen money. The extent to which this was debated was practically insufferable, as the underlying assumption was that the American people are so stupid as to believe that saving tens or hundreds of millions of dollars would make some significant difference when they were being divested of trillions. Still, for decorum’s sake, somebody had to put some lipstick on this bailout, rip-off pig.

There was also some discussion about the clause in the proposed bill that would give the Treasury Department and Federal Reserve unchecked power to spend the money any way they want, without oversight by Congress. Under the pretense of them representing “the people,” many of the Congressmen blustered that unelected officials could not be entrusted with this much money without oversight by the people’s representatives. Of course, anyone that has seen The Godfather movies, Goodfellas, or Casino knows that infighting is common inside criminal organizations. What this really represented was a power struggle over how the loot would be split up, or at least who would decide how it will be done. The most laughable part of this is that even if Congress gets oversight into the bill, they have already demonstrated while squandering the other $3 trillion dollars that they stole from us this year that they are going to roll over and agree to whatever the executive branch wants to do anyway, no matter how unconstitutional or even criminal (is there a difference?) the policy may be.

Finally, there was also some discussion about not appropriating the entire $700 billion all at once. Honestly, some of the Congressman seemed genuinely concerned about the calls that they were getting from their constituents. Apparently, significant segments of the population in some districts had not slept through this one, and were letting them know that they weren’t happy about this latest scam. False Prophet of Freedom Charles Schumer suggested that perhaps Treasury could pilfer $150 billion now, and return at a later date to collect the rest. There are always those who lose their nerve in every crew.

At this point, it is probably clear that never was there going to be a debate about WHETHER OR NOT THE MONEY SHOULD BE STOLEN FROM THE PEOPLE AT ALL. By the end of the news coverage of the congressional hearings, the debate had been framed to focus on whether or not to let CEO’s share some of the loot, who would decide how it was divided, and whether or not it would be stolen all at once. Of course, the media outlets for both major parties (Fox for the Republicans and MSNBC for the Democrats) immediately took their cues and tried the best they could to characterize these trivialities as “weighty issues.” However, there was still a feeling of uncertainty in the air about whether or not the syndicate could actually get away with this. Never fear, because the best theater was saved for last.

I have to give some credit to the political professionals that are running John McCain’s campaign. I wouldn’t have given him a chance to win this election six months ago, when it became apparent that he would be the Republican nominee. Somehow, his campaign has managed to convince a significant amount of people that this man, who barely graduated from college, whose mental stability has legitimately been questioned on many occasions, and who literally cannot be trusted to give an unscripted statement within range of a microphone, should be the next president of the United States. His selection of Sarah Palin as running mate seemed to swing momentum to his side at a time when Obama was poised to distance himself in the polls. After more McCain blundering at the podium had revived Obama once again, giving him a six point lead in the latest national polls, the McCain campaign pulled off its greatest coup to date. John McCain was suspending his presidential campaign, and calling on Barack Obama to do the same. There was a danger that the heist wouldn’t come off without their help, and McCain was heading immediately to Washington.

Finally, this was the diversion that the plot needed. The media was energized. Fox’s Carl Cameron appeared onscreen literally out of breath (I hope he was acting) with the scoop on McCain’s startling decision. Now, the debate had really been framed. Should Obama follow McCain’s lead, or was this just a political move? Should the debates go forward? Who actually called who first? McCain or Obama? There was simply no longer time to argue dry, philosophical issues, such as property rights for instance. No, there was now high drama in the presidential campaign charade and a prime time television event that was in jeopardy of being cancelled. The heist was on, and all that was left was to make sure that Stacks didn’t fall asleep in the getaway truck.

While without question a political stunt, and what will probably prove to be a very successful one, there was a little sincerity amidst all of the theater. McCain called for a presidential commission including Republicans and Democrats. It was time to put politics aside. Obama said that this was “no longer a Republican or Democratic problem, but an American problem.” I would only add one word. It is not a Republican or Democratic problem, but an American Oligarchy problem. The oligarchy is in some jeopardy here, with its phony monetary and financial system in danger of collapse, and it is time to put the pretense of being ideologically different aside and work together to save it. I was reminded of Mel Brooks in the classic “Blazing Saddles,” when he said, “We’ve got to protect our phony baloney jobs!” If there was ever a question of whether we are ruled by “Republicrats,” that question has been answered now that the chips are down.

There is some hope, though. For once, Ron Paul was not the only one calling the system into question. Jim DeMint actually said that he was disturbed that free market capitalism was being blamed for the crisis when in actuality it was entirely caused by government. Richard Shelby said that he was opposed to the bailout, as did Jim Bunning, who has been vocally critical of the Federal Reserve. Most importantly, even though the media jumped right in line with the Republicrat spin to frame this debate away from the real question – can the government actually steal this money from the American people – they were nevertheless forced to report that large sections of the American public are ANGRY about this. Unfortunately, they don’t know exactly what to be angry at, and are probably going to be quite easily manipulated to focus that anger in the wrong direction. But they’re pissed, and they are not being quiet about it anymore. One thing is true: the American people have been poorly educated, misinformed, lied to, manipulated, and conditioned to a certain extent, but they are not stupid. They know something smells about this and they are starting to figure out what direction the odor is coming from. Once they rediscover their individual rights – the rights that cannot be bought with fiat money nor voted away in an election – the criminal gang is going to be in grave danger. This may be their last score.

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