17 December 2011

Very good

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Tuesday, September 27, 2011


Napoleon, the Pope, and the CSA

Part I



Charles Edward Stewart

Europe continues to shape attitudes here in the United States. European philosophy underpins American culture despite attempts to shift the emphasis to other regions. In 1860 the influence of Europe on events in the USA was even more profound than today. Trade is always referred to as the most important issue in America’s trans-Atlantic relationship. However, in my opinion it is political ideas, culture and philosophy that are paramount.

Some say that the birth of the United States is the realization of Christendom in government fulfilling the work of James IV & I. Infused with the high Medieval ideals of decentralization stemming from the study of the Trinity; the Articles of Confederation and then the Constitution attempted to reconcile theories that issued from the pre-Hanoverian English monarchy with the realities of the New World. The legacy of the Stewart Kings was still strong and Christian agrarianism would be given another chance to thrive.

Had James II & VII not been illegally driven from office and the Stewart lineage continued to reign perhaps the American Revolution might not have happened. But with the advent of Continental politics in the form of William III (of Orange 1650-1702) and the conniving of a Parliament consumed with envy and regicide the abuse of the Colonies in the 18th century was destined and the American Revolution inevitable.

When in 1745 Charles Edward Stewart (Bonnie Prince Charles, 1720-1788), grandson of James II, landed in Scotland as Prince Regent of England, Scotland, Ireland, and North America he raised an army to free England from the grip of the Hanoverian pretenders and their incestuous brethrens in Parliament. Bathed in glory he and his followers bravely fought against all odds but in the end were defeated. The Jacobite cause and the pluralism and decentralization for which it stood left the British Isles and the fight continued elsewhere.

It has been suggested that the Bonnie Prince could have been the King of America. Certainly there was enough Jacobite sympathy in the Colonies to make it a possibility. Without doubt the lessons from the Stewart monarchs; the scholarship of James I, the murder of Charles I at the hands of Parliament, the unconscionable treatment of James II, and the brave dedication of Charles Edward was on every thinking person’s mind.

These events which occurred in the recent past for the Colonists were the artifacts of European politics that shaped the writing of the Declaration of Independence as much as anything else. The Colonists knew that there were centralizing forces at work in the halls of Europe. The power mad moral relativists in Parliament, their financiers, and the lugubrious Hanoverian monarchs were dangerous and antithetical to political freedom. This reality was not lost on the American Patriots.

As the citizens of the new United States set about to establish a model of high Middle-Ages decentralization that was designed to stifle the development of a strong central government; many Europeans were busy going the other direction. Through revolts, wars, revolutions, blood, and terrorism one nation after another would follow Britannia into the inferno of consolidation and centralization.

In a series of revolts, revolutions, wars, and other bloody carnage France was squeezed into a nation that looked something like it does today. For decades wars spread destruction across Europe and as France pushed its borders from the Atlantic to Moscow only to see it contract in a succession of gory spasms.

Under the banner of nationalism, fraternity, egality, socialism, progress, and atheism the French experience was copied and pasted onto the Italian peninsula, Greece, and the Germanic states. The 1800’s were packed with conflict as one would-be dictator, chancellor, or proletarian hero attempted to seize as much power as possible with the tools of the bourgeoning modern age.

The common ground for this activity was the creation of a strong central government. Mechanization and transportation followed the new religion of modern materialism leading otherwise sane people to dream of bigger and grander conquests.

The USA was not immune to these impulses. Perhaps the territorial designs and war with Mexico (1846-48) was a harbinger of things to come. Yet that seemed more like a classic land-grab than a centralizing power-grab.

But there was restlessness in the Northern states. The growing Northeastern materialist establishment began to cast their eyes on the government in Washington. The antiquated relic of Jacobite idealism would not bend to their wishes and impress the will of the few upon the whole country. Supported in the South the power balance and decentralized structure of the Constitution promised integrity for the individual while it bridled government control. The North chaffed under the Constitution. This out of kilter situation was doomed.


Benjamin Disraeli

With a close eye on Europe, adoration for the French Revolution, and the acceptance of Karl Marx into the pantheon of intellectuals the establishment in the North was aware which way the wind was blowing. In the 1800’s the heroes of modern Europe were centralizers, colonizers, and empire builders; led by strongmen like Benjamin Disraeli, Napoleon Bonaparte, and Bismarck. These trends were known to the Yankee powerbrokers who did not want to be left behind.

The only thing that stood in their way was the South. From the swamps of Florida to the Ozarks of Missouri the vast geography harbored “archaic” notions of governance. In the same way that Prussia coveted Bavaria and Austria the Yankees craved the South and its wealth. They need only to provoke the Southern people enough, war would break out, and conquest would belong to the North. No one in the world would come to the aid of the quaint rustics in the South and within days or weeks a new central government would reign from Washington.

This was the thinking in 1860. The North would outsmart the planet, blame the coming war on slavery, smash the South, and get away with murder. The Europeans would sit on the sidelines not smart enough to see past the pretext casus belli: slavery. Or would they?


End of Part I

Portrait  traditionally depicting Prince Charles Edward by Maurice de la Tour (1704-1788)


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Wednesday, December 14, 2011

Napoleon, the Pope, and the CSA (Part II)

Europe's Plan to Save the South

Emperor Louis Napoleon III
                       
Not to be confused with Napoleon Bonaparte, his uncle, Louis Napoleon or His Imperial Majesty Emperor Napoleon III lived from 1808-1873 and reigned in France from 1848 until 1870. He was married to Eugenie de Montijo, known as Empress Consort Eugenie (1826-1920). Napoleon III reigned in France during a perilous time of intrigue, scheming politics, and shifting alliances, as the forces of unification and centralization stalked most regions of Europe. He was destined to cast a large shadow over events during the American Civil War or War Between the States (WBTS).

Empress Consort Eugenie
  By 1861, Napoleon III was drawn into a conflict in the New World by the long-standing turmoil in Mexico, which resulted in a default on loan payments that broke the Treaty of Soledad by the liberal Mexican government on debt owed to France, Spain, and England. To redress the situation, in late 1861, France led an expeditionary force into Mexico along with troops from England, Spain, and Austria. Within a short time, however, most of the other European forces went home, and France was left to move alone against the Mexican Army, supported by its sometime President Benito Juarez. The political and social situation in Mexico at the time was fractured, and Juarez represented the most prominent faction within a number of relatively small political groups. The northern states of Mexico, led by Santiago Vidaurri, were independent of the central government and soon allied themselves with the newly formed Confederate States of America (CSA). Meanwhile, various other groups, the Catholic Church, businessmen, and industrialists, mostly opposed Juarez.

By today's standards, Juarez would be termed a liberal or perhaps a left-wing populist strongman. He was supported by the new Lincoln administration in Washington, which held similar views to his, but Lincoln could not aid Juarez due to his own burgeoning crisis, the WBTS. Juarez represented those government interests who had welched on their debt payments due to careless spending. After a period of armed conflict, Mexican General Comonfort finally surrendered to French Commander Elie Forey in the spring of 1863, and Juarez went into exile at Chihuahua City in the far northwest of Mexico.

Far from being the end of the story, this was only the beginning of a plan by His Majesty Napoleon III to aid the CSA. Neutralizing the floundering and incompetent government of the Juarez regime was just the first step in a complicated diplomatic and military action carried out by several European Powers designed to save Christian agrarianism in North America.


Pope Pius IX
The Pope's Blessing         
                                     
Anyone who has studied the WBTS knows that establishment historians and other government apparatchiks have long insisted that the CSA was isolated from Europe and had no significant allies there. This alleged isolation was based on the supposed stigma attached to the South’s employment of the institution of slavery. This was not the case at all. But formal recognition of the CSA by European nations and the question of whether the CSA had European allies are two separate issues. The Mexican states bordering Texas to the south--namely Nuevo Leon y Coahuila as well as Tamaulipas--were early allies of the CSA and strong trading partners forming a large conduit for Southern cotton to Europe. This same alliance also served as a market for textiles and other goods produced in Monterrey and sold to the CSA.

The question of the CSA’s European allies is a more complicated issue. Understanding it requires a nuanced approach, an understanding of several theaters of operation at once, a perspective that has apparently eluded establishment scholars, who have ignored this arena either because it didn’t fit their hackneyed “slavery” template or because they have sought to obfuscate the subject.

As mentioned in part 1, the impulse towards consolidation and centralization, sometimes called unification or consolidationism, was an epidemic in Europe. In the early nineteenth century, the Italian peninsula was a diverse, pluralistic collection of states, duchies, and kingdoms. Through a series of wars, uprisings, and revolutions, though, this marvelous assemblage of distinct cultures was crushed into an increasingly homogenous society that sought to stamp out individual identities in favor of the national physiography called Italy.

One man who was at the center of the battle to retain the character of the Italian peninsula and opposed unification in the rest of Europe was Pope Pius IX (1792-1878). Arguably the greatest pope of the nineteenth century (possibly the modern era), he fought both spiritually and at times physically in the cause for ethnic diversity. A great theologian, writer, and pastor, he was the longest serving elected pope in the history of the Catholic Church. He also favored President Jefferson Davis over the rump president Abraham Lincoln. Not only did Pope Pius IX receive diplomats from the CSA, he corresponded with President Davis and worked behind the scenes with European heads of state to support the Southern cause. Many of these proceedings could be found scattered in various references. But recently, a new book,  La Corona Ecumenica--Pio IX y la Confederacion Americana, 1861-1865, detailing the relationship of the pope with the South has been published in Spain by author Raphael Waldburg-Zeil.

Why would this famous pope side with the Confederate States? Gary Potter, writing in Catholicism , provides some of the answers. He writes, “We shall be helped in this by a remarkable essay, Religion and the Old South, written nearly seventy years ago by Allen Tate, poet, essayist, Southerner, and convert to the Faith.” The Old South, Tate shows, had the only truly European civilization ever known in America. That is, in the sense that it was a civilization rooted in its own, unique soil and produced men who measured their success in life according to non-material standards, perhaps the chief of them being honor. It was an agricultural civilization and a hierarchical one. That, in itself, was enough to make Pius and most ordinary Catholics of the day sympathetic to the South. Certainly the Catholic Bishops of the South were sympathetic. There is no record of any of them failing to support the Confederacy. One of them, Bishop Patrick Lynch of Charleston, South Carolina, became President Davis’ envoy to Pope Pius IX.”

In other words, the pope recognized the distinctive difference between the North and the South was one of culture and attitude. The Weltanschauung (comprehensive worldview) in the South was a cultural expression of the perennial wisdom where the deep recurring themes of the seasons, religion, and the land formed a worldview in conflict with that of the materialistic Yankee north. 

Allied with the pope through reasons of compatibility were Emperor Louis Napoleon and his wife, Empress Eugenie, an intelligent and skilled woman with an active interest in foreign policy. She would be one of the emperor's best advisers and would make up in boldness what his Majesty lacked in pluck.

Eugenie was born in Granada, Spain, to Don Portocarrero and María Kirkpatrick Grevigné. She was educated in Paris and would marry Louis Napoleon in 1853. It is through Eugenie's family that a crucial Jacobite influence emerged (the Jacobite connection is referred to in part 1). Empress Eugenie's grandfather was William Kirkpatrick of Conheath, a Scottish nobleman whose family had supported English King Charles I and was awarded a title and other honors by the Jacobite patriarch James II. Her oldest sister was María Francisca. Maria married Jacob Fitz-James Stewart y Ventimiglia, the 8th Duke of Berwick, a part of the Stewart lineage.

Anyone who has looked into the history of the South knows that there was a strong Jacobite sentiment in the southern states. Many of the “mountain Celts” in the South favored the Stewart cause or were in some degree loyal to the Stewart monarchy, even to this day. Other European immigrants had affection for the Jacobites as well as the Hapsburgs. These attachments were known in the royalist circles of Europe exposing to them a vein of potential allies. 

France Ascending



Michel Chevalier

Michel Chevalier (1806-1879) was a well-known figure in the French government holding several advisory posts. In a remarkable vegrandis libri translated by W. Henry Hurlbut and published in 1863 entitled France, Mexico, and the Confederate States, Chevalier yields some extraordinary insights about the policies of Emperor Napoleon. In September 1863, the New York Times characterized Chevalier's book this way: “There is little doubt, at all events, that it foreshadows Louis Napoleon's purposes, hopes and desires. Even without inspiration, however, its great ability and plausibility render it of high value and interest.” Subsequent writings by Chevalier would affirm that his ideas were indeed advising the Tuileries (the French White House).

A plan unfolded in Europe to aid the Confederate States by launching an expedition to Mexico. Chevalier confirms this (page 7 of his book): “It is (our) interests which compel France to sympathize with the Confederate States which have led our banners up to the walls of Mexico. The recognition of the Southern States will be the consequences of our intervention . . . which will consecrate the final separation and secession of those states from the American Union.” Beginning with the ouster of Juarez and stabilization of the political situation in Mexico, the French military would bring order to a society that had seen decades of chaos. The next part of the French plan might well be attributed to Empress Eugenie.

At the outset of the WTBS, Europe looked very different than it does today. For instance, there was no Germany as we know it. There was, however, a common Germanic language shared by many small and medium-sized states in Central Europe, the most important being Prussia, Bavaria, and Austria. The latter two were more or less allied with France, and the former installed Otto von Bismarck, an admirer of President Lincoln, as their leader. But Germany, as a country, did not exist.

As described in part 1, the situation in Europe was a powder keg of shifting alliances, a time of intrigue and revolution. Within this situation, the interests of the French, Austrians, and Pope Pius IX coalesced around a policy that would stabilize Mexico politically and bring new administrative skills to the government. Once this aim was accomplished, it would ensure a legitimate base of operations in the Gulf of Mexico for the French to openly supply the CSA.

It would take the French and their allies, not England’s actions and policies, to accomplish this plan. About the English, Chevalier said: “The commerce of England profits by the misfortunes of American commerce; she looks with satisfaction on the exhaustion alike of [the] South and of the North. She supplies both parties with arms, and while the southern export of cotton is suspended, she is increasing the cotton culture of India. England, then, will never take the initiative in recognizing the Confederate States . . .” In short, England was content to sell weapons to both sides and cynically watch them kill one another.


Family Ties


The idea that Europeans would hesitate to help the CSA over the slavery issue was ridiculous according to Chevalier: “The northern idea of abolition of slavery, by making the negro food for powder [to be used as cannon fodder] or by exiling him from his home (exporting him) to die of hunger is now thoroughly understood in Europe. Our notions of philanthropy and our moral sense alike revolt from these ferocious exaggerations of the love of liberty. Honest and intelligent men are no longer to be duped by these coarse devices, and Mr. Lincoln's abolition cry finds no echo.”

Casting the humanitarian pretensions of anti-slavery fanatics into the cocked-hat from whence they came, the European coalition moved forward with their plan. They prevailed on the beautiful Sophia, Princess of Bavaria, who was influential at the Austrian court. Empress Eugenie may have initiated the proposal that Sophia's son should rule as the Emperor of Mexico with the help of France. 

Princess Sophia of Bavaria
After a period of consideration, the stake holders came to an agreement and the son of Princess Sophia, Maximilian, the younger brother of Emperor Franz Joseph of Austria, would be offered the throne of Mexico. In 1863, Maximilian and his young wife Carlota, and daughter of King Leopold of Belgium, a Protestant, agreed to go to Mexico and govern. Maximilian was from a new generation of monarchs who were forward thinking and interested in reform. This upstart group of royalty believed in the concept of democratic legitimacy, and he only agreed to rule in Mexico after a vote had been taken to confirm him. Somewhat like President John Kennedy and his wife Jacqueline, the couple were young, beautiful, idealistic, and full of life. They tried their best to perform their roles to reform Mexico, but Maximilian's story would be all too similar to that of JFK’s.

Emperor Franz Joseph I of Austria

The plan was now in motion. Monsieur Chevalier speaking in the New York Times, June 30, 1863, sized up the situation in Mexico this way, “Mexico is to be permanently occupied . . . a civil service in every department is to be immediately organized in that country . . . I am persuaded, from various indications, that a permanent occupation is, and was from the first, intended.”

The next phase was establishing Maximilian and then French and Austrian military bases. The Europeans had no respect for the brutal Lincoln administration or the New England power structure that had installed him in office. Chevalier writes (p. 12): “Today the Americans of the north are completely foreign to the family of nations . . . They understand nothing but the narrowest and most mechanical mercantilism . . . and they long to annihilate the Confederate states in order that the South, by its intelligence, its enterprise, and the talents of its statesmen, may not throw down the ramparts they (the north) have built up against Europe . . ” To my knowledge no one in Europe disputed Chevalier's characterization of the Yankees.

The military and diplomatic plans were also being negotiated through envoys and other representatives of the Jefferson Davis administration in Richmond, Virginia. There was fierce activity by the Confederate State Department to quickly put together a stronger military agreement. France would build warships and provide materiel, but troops were out of the question until supply lines could be strengthened, land bases established, and a diplomatic cover rendered that would satisfy a nervous European public.

Carlota & Maximillian of Mexico

Chevalier continues on page 16: “Recognized by France, the strength of those states (the South) is quintupled at once . . . For other states (countries) are waiting to follow the example of France . . . [other] powers, hitherto kept aloof by the phantom of slavery, will follow France . . . ” Once France justified diplomatic and military ties, then the die would be irrevocably cast. The move would be enough to sway public opinion across Christendom against the common enemy, Abraham Lincoln, and the clique that controlled Washington. The most likely candidates to join the coalition with France would be Austria, Bavaria, and Brazil for starters. Outside Bismarck and the Prussians and the friendless goat of the Crimean War, Czar Alexander II of Russia, Lincoln's northern alliance had few friends.

These facts were well known to the Europeans who calculated that with the leadership of Napoleon III and his military, allied with the ground forces of the CSA, short work could be made of Lincoln. At the end of Chevalier's comments, he raised a military specter: “The navy of France is an argument which, in case of necessity, would support diplomatic action.” Here the meaning is obvious. Under the correct diplomatic cover, the French fleet would come in and smash the Yankee blockade and restore international trade and order. This would be the end of Lincoln's northern alliance.


Falling Curtain


President Jeffereson Davis
Although France and her associates spent blood and treasure on this project, the curtain was going down before the plan could come to fruition. The war spun out of control for the CSA, and defeat brought an end to its hope. Urgency was likely the source of the severe brutality by Grant, Sherman, and Sheridan toward the end of the war, when these generals used human resources like dried pine needles on a fire to defeat the South. Union soldiers recklessly charged at the dwindling Confederate forces, who slaughtered them by the thousands. But in the end, Northern numbers ruthlessly overcame Southern valor. Lincoln knew that Europe was about to enter our war, so his tactics, as implemented by General U.S. Grant, devolved into savagery. The clock had run out for the South.

Despised by many in Europe, Lincoln's government gained no new foreign alliances during the war, keeping only those already established by previous administrations. In addition, it had no assurances of military aid from abroad in case the United States had a future war with a European power. Yet the oldest families of Europe who had defended Western Civilization and Christendom for over 1000 years had extended a hand to save the Confederate States.  

Had the South withstood the attacking Northerners and secured secession, it could have introduced new agricultural and labor techniques. Then with the help of France and the guidance of countries that had already terminated bondage; slavery would have peacefully ended. The South and the area along the Gulf of Mexico would have developed in a much different way.

Within a year of the end of the WBTS, Bismarck's Prussia would attack Bavaria and Austria, igniting the Austro-Prussian War. The United States would renew its support for Juarez, and soon the French were forced to pull out of Mexico in anticipation of a war with Prussia, which erupted in 1870. The idealistic Maximilian, instead of fleeing or abdicating, loyally remained with his adopted people and was defeated and brutally executed by Juarez: a sacrifice at the altar of liberalism that has plunged Mexico into turmoil up to the present time.

After the war, Pope Pius IX would continue to comfort the deposed President Davis and his family, supporting him even through his personal trials and imprisonment. The French people who helped give birth to the United States tried to save the old republic and recoiled at the attempt by the North to use the humanitarian pretensions of abolitionism to cover naked aggression and genocide.

The perennial wisdom of Christendom was delivered a grave but not a fatal blow. After the War it would be subducted, sliding beneath the veneer of modern culture , only to rise again and again.



0 comments

21 November 2011

why do people routinely believe that productivity and solvency can be commanded by wave of a politician’s magic wand?

and the creation of "politically controlled money is exactly what the South fought to prevent -- yes huge ironies and paradoxes involved

http://papermoneycollapse.com/2011/10/the-second-crisis-of-socialism/

After 40 years of government-controlled money, this is the result.

This crisis is the inevitable outcome of the dangerous belief that low interest rates, and investment and lasting prosperity, can be had via the short cut of money printing, and its twin sisters, artificially low lending rates and never-ending bank credit creation, rather than the time-honoured hard way (and capitalist way) of saving and true capital formation.

http://www.youtube.com/watch?v=WMTyKduYrUk

This is not a crisis of capitalism. My good friend Brian Micklethwait coined a much better phrase for it: This is the second crisis of socialism. We are witnessing the demise of the paper money standard, 40 years after the global fiat money system was freed of its last link to gold, and money everywhere became simply an unchecked territorial monopoly of the state. What we are now finding out is this: the state and the banks need a straightjacket or they will sooner or later drag us all into a black hole.

Why is this system socialist?

There are two ways in which a monetary system can be organized: either the market chooses what is money, or the state does.

The money of the free market, of capitalism, has always been commodity money that is outside of political control. Wherever the trading public was free to choose, it picked commodities of fairly inelastic supply as monetary assets. Almost all societies, throughout all cultures and civilizations, have come to use precious metals as money.

Commodity money is apolitical money. Nobody can create it at will and use it to fund himself or to manipulate the economy. Crucially, human cooperation via trade does not stop at political borders, and commodity money has always transcended such borders. If gold was money this side of the border, it was usually equally money on the other side, regardless of whose image was printed on it.

Image by FreeDigitalPhotos.net

By contrast, complete paper money systems that have no link to an underlying commodity are always creations of politics. In such systems, money can be "printed" at essentially no cost and thus practically without limit. But not by everybody. Money printing is the privilege of the state and its central bank. Money, in this system, is entirely elastic. But it is political money and closely linked to political authority.............

for further context>>  http://dixienet.org/New%20Site/quovadis.shtml

17 October 2011

ideas once on the fringe....


Hell....I thought the South lost!  so what's going on????
http://online.wsj.com/article/SB10001424052970204482304574219813708759806.html

Maybe Jefferson Davis was right....the issues of the 1860s  were bound to reassert themselves......are reasserting themselves

Today’s devolutionists, of all stripes, can trace their pedigree to the “anti-federalists” who opposed the compact that came out of Philadelphia as a bad bargain that gave too much power to the center at the expense of the limbs. Some of America’s most vigorous and learned minds were in the anti-federalist camp; their ranks included Virginia’s Patrick Henry, of “give me liberty or give me death” renown. The sainted Jefferson, who was serving as a diplomat in Paris during the convention, is these days claimed by secessionists as a kindred anti-federal spirit, even if he did go on to serve two terms as president.

The anti-federalists lost their battle, but history, in certain respects, has redeemed their vision, for they anticipated how many Americans have come to feel about their nation’s seat of federal power. “This city, and the government of it, must indubitably take their tone from the character of the men, who from the nature of its situation and institution, must collect there,” the anti-federalist pamphleteer known only as the Federal Farmer wrote. “If we expect it will have any sincere attachments to simple and frugal republicanism, to that liberty and mild government, which is dear to the laborious part of a free people, we most assuredly deceive ourselves.”

In the mid-19th century, the anti-federalist impulse took a dark [indeed!!,,,, this and the following is that narrative that must be overcome] -]turn, attaching itself to the cause of the Confederacy, which was formed by the unilateral secession of 13 southern states over the bloody issue of slavery. Lincoln had no choice but to go to war to preserve the Union  [nonsense --- he went to war to get  the precise result this author is now weighing in with a "new" oberservation about] —and ever since, anti-federalism, in almost any guise, has had to defend itself from the charge of being anti-modern and indeed retrograde.... [which it was.....that is part of the point.... this is the modern and ancient world clashing]

Jack Molloy

The U.S., as envisioned by some percolating secessionist movements.

But nearly a century and a half has passed since Johnny Rebel whooped for the last time. Slavery is dead, and so too is the large-scale industrial economy that the Yankees embraced as their path to victory over the South and to global prosperity. The model lasted a long time, to be sure, surviving all the way through the New Deal and the first several decades of the post-World War II era, coming a cropper at the tail end of the 1960s, just as the economist John Kenneth Galbraith was holding out “The New Industrial State,” the master-planned economy, as a seemingly permanent condition of modern life.


13 October 2011

yesterday's Daily Reckoning

Lurching Toward an Impasse
Where We Are on the Looping Sequence of Reformation

Joel Bowman
Reporting from Buenos Aires, Argentina...

Something is happening here and you don’t know what it is,
Do you, Mr. Jones?


— Bob Dylan, “Ballad of a Thin Man”

>From Wall Street to Los Angeles, sea to shining sea, occupiers are taking to the streets. No longer is it credible to say of protests and massive civil unrest abroad “It will never happen here.” To do so today would be a denial of reality.

It is here...wherever that “here” may be for you. And if it is not, it soon will be.

For many Mr. and Mrs. Joneses, this is quite a confusing time. Frightening, even. They know something is happening here...but they don’t know what it is. And that includes many of the Joneses in the occupying camps themselves. They know they are angry...that they have been dealt a rotten hand...that they are the “have nots.” But they don’t know why...or who to blame. Then, along comes an “open source” movement. They didn’t even know such a thing existed a few weeks ago. But they are drawn to its energy and their fellow downtrodden within it. The see that it is going somewhere, doing something. It is on all the news channels and in the paper. And now they are neck deep in it, swept along with the tides of change, resistance and revolution.

The oldies put on their old Dylan records and imagine they are young again. The young put on their new Dylan records and wish they were old enough to remember the originals. They link arms, swap sad stories and reason that they are on the same side, the team of the cheated and the scammed. On this point they might well be right. But on what to do about it, opinions differ wildly. And so the movement marches on...some say right into the winds of a new kind of “reformation.”

Here’s John Robb of Global Guerrillas, an expert in open source warfare, with a “simplification of the historical pattern of Reformation”:

  • Universal system.
  • Compliance and participation enforced by violence.
  • Bureaucratic and lethargic. Corrupt and unfair. Hardship and misery.
  • Loss of legitimacy.
  • Challenged by reformers. Corruption exposed.
  • New technology unleashes a cacophony of criticism.
  • Reforms are rejected by the existing bureaucracy.
  • New, competitive systems are launched.
  • An exodus begins. People leave the old system to join the new.
  • The old system fights back. A fight ensues between the old and the new.
  • Eventually a peace is achieved and a new era begins.
If indeed Mr. Robb’s thinking here is correct — or even close to it — one might fairly ask, “Where are we, approximately, along this historically looping sequence?”

Certainly the “compliance and participation enforced by violence” point has been with us for a while...as has the bureaucracy, lethargy, corruption and consequent misery for the masses. But what about the rest?

Some might argue that the financial collapse of 2008-09 first exposed the fetid corruption of the system, causing its legitimacy to be, at the very least, called into question. Further along the steps, the Occupy Wall Street crowd has formerly adopted the “open source warfare” Mr. Robb describes — enabled largely by huge leaps in communications technology. The OWS movement is based on the Arab Spring model — horizontal, no hierarchy or bureaucracy, geographically decentralized, consensus decision making, etc. Now take a look at the movement. Listen to it. “Cacophony of criticism unleashed”? Check.

That leaves us somewhere between “Reforms are rejected by the existing bureaucracy” and “New, competitive systems are launched.”

The world is lurching toward an impasse, a crossroads between the old and the new. Awaiting rejection from the establishment...and mounting challenges to its hegemony. It is an epoch of sorts. A chance for a brand new experiment in freedom and voluntarism...or an opportunity to dive back into the failed model of the state, only to begin the loopback process all over again.

The role of the economist — and for any astute social observer — is to shine a light on the unseen. Any old wirebug can report what’s happening before his very eyes. But what’s going on behind the scenes? What’s happening on the fringe? Change, after all, is nurtured at the margin, far from the nipple of the bell curve...far from anyone calling themselves “the other 99%.”

There is, indeed, another movement under way. Its participants are not wasting time camping out on Wall Street or attending occupations in other capital cities. And they’re certainly not marching on the steps of Washington DC, as one republican presidential candidate — who hopes one day to occupy the White House himself — urged them to do. They know there’s no point in pleading with those who aggress against them. They understand it’s like asking a sociopath to show them a little empathy. It’s impossible. And a waste of valuable time just the same. These people realize that, to be successful, an appeal to reason must be first directed toward reasonable people.

These individuals also know there is a target on their back...and that there’s little point talking to the maniac with the gun. They have gone underground. They are saving — NOT “hording” — gold, trading alternative currencies, experimenting with resilient communities, preparing for a new world and generally thinking outside the box.

And they are not begging permission from the state to do so.

These revolutionaries are not utopians. They are realists. They understand that change must come about peacefully, through means of voluntary exchange and the spread of ideas. And they are building communities — on and offline — to facilitate just that. Above all, they are aware, as Murray Rothbard expressed in his work, For a New Liberty, that they must pay close attention to the failed experiments of history if they wish not to repeat them. Wrote Mr. Rothbard:

“The idea of a strictly limited constitutional State was a noble experiment that failed, even under the most favorable and propitious circumstances. [the Jefferson Davis - died of a theory idea] If it failed then, why should a similar experiment fare any better now? No, it is the conservative laissez-fairist, the man who puts all the guns and all the decision-making power into the hands of the central government and then says, ‘Limit yourself’; it is he who is truly the impractical utopian.”

More on this to come...

Bill has more on the growing discontent in today’s essay, below...




The Daily Reckoning Presents
Vive La Revolution!

Bill Bonner
The Occupy Wall Street movement is getting a fair amount of press. The movement, as you know, dear reader, is a loose assembly of the jobless, the homeless and the shiftless. Troublemakers, every one of them, with no coherent or sensible view of what is wrong or how to fix it. But what’s wrong with that?

The Occupy Wall Street protests started on Sept. 17 with a few dozen demonstrators who tried to pitch tents in front of the New York Stock Exchange. Since then, hundreds have set up camp in a park nearby and have become increasingly organized, lining up medical aid and legal help and printing their own newspaper, the Occupied Wall Street Journal.

About 100 demonstrators were arrested on Sept. 24 and some were pepper-sprayed. On Saturday police arrested 700 on charges of disorderly conduct and blocking a public street as they tried to march over the Brooklyn Bridge. Police said they took five more protesters into custody on Monday, though it was unclear whether they had been charged with any crime.

On Monday, the zombies stayed on the sidewalks as they wound through Manhattan’s financial district chanting, “How to fix the deficit: End the war, tax the rich!” They lurched along with their arms in front of them. Some yelled, “I smell money!”

The US is probably getting ready for a revolution. Back in the Cold War days, the CIA was asked to do a portrait of a country that might have a revolution. It decided that such a country would have three characteristics:

A big gap between rich and poor.

A middle class that was disappearing...or one that never existed in the first place.

A lot of people with a grudge.

The US fits each of these criteria. And then some others the spooks hadn’t thought about. The U6 broad measure of unemployment is going up...with 16.5% of the population without work. There are 6.2 million people who have been looking for a job for more than 6 months.

Americans are $7 trillion poorer, according to David Rosenberg, than they were 4 years ago — and property prices are still going down.

Yes, there’s also a Great Correction in progress. It, along with the policies of the US government, grind the faces of the poor.

Millions of marginally successful people think the system has failed them. Youth joblessness is at Great Depression levels. More than 45 million are on food stamps.

People come to think what they must think when they must think it. So, a person who feels he has failed must come to terms with it. He must find a reason that gets himself off the hook. It must be someone else’s fault.

It was not his fault he failed his chemistry exam. The ‘system’ should provide him with a good job anyway. It was not his fault his house got taken away; the system caused prices to fall...and his job got exported to Mumbai. It was not his fault he didn’t save any money; the banks took advantage of him mercilessly. He may even get a “deficiency notice” — telling him he has to pay the bank for its loss on his foreclosed house.

Add insult to injury, why don’t you!

The guy has a legitimate beef!

It wasn’t his fault that the Nixon administration cut the link to gold in 1971. It wasn’t his fault the Chinese produced things better and cheaper. It wasn’t his fault that the feds kept stimulating the economy...and encouraging him to go deeper and deeper into debt at artificially low interest rates. And it certainly wasn’t he who caused the housing bubble to blow up...or who caused it in the first place.

But one thing you can depend on. Not many people will do the hard work of connecting the kneebone of this disaster to the legbone that caused it. And he won’t want to make the sacrifices necessary to protect himself from it either. (Our advice: cut expenses to almost zero...save money...buy gold...become a bankruptcy lawyer.) Instead, he’ll join the revolution.

Of course, people do not join revolutions for good reasons. They join them for bad ones. They expect miracles. One wants free money. The other wants power. One wants to see his brother-in-law, who earns big money as a currency trader at JPMorgan, brought low. Another just wants to get high. One expects his mortgage to disappear. Another wants the whole neighborhood to disappear. One hopes to see his dead wife rise from the grave...the other hopes his live wife will fall into it.

One believes the bankers are rich and evil. Another believes the oil companies are rich and evil. A third thinks all rich people are evil. And a fourth believes that all people are evil, even those in the Occupy Wall Street movement.

Some want to save porpoises. Some want people to use only natural deodorant. And a third thinks the world uses too much oil...and that only people who drive Priuses should be allowed on the road on Sunday. He owns a Prius dealership.

It is fun to mock the protestors. That’s why we do it. They are such easy targets.

But here at The Daily Reckoning we always stand with the powerless, the aimless and the witless. We are champions of the underdog...the lost cause and the diehard. So, we lock arms with the protestors and pledge our solidarity.

Vive la revolution!

But the poor protestors are just victims of history. When the US embraced its empire it condemned its middle classes. Why? Because that’s how empires work. They bring in cheap goods — and sometimes money itself — from outside. Whether they are taken as booty or traded for the imperial currency, the effect is about the same; they undermine local industries and local wages.

Ancient Rome imported wheat from Egypt, by the boatload, and gave it to citizens (an early form of food stamps). Result: the price of wheat collapsed. Small farmers couldn’t compete with free wheat. They couldn’t earn a living.

The Romans also brought in slaves. Rich, politically-connected Romans took over the small farms, consolidated them into big plantations, and ran them with slave labor. Again, the local labor was out of luck.

Things got so bad for the small farmers that they sold their children into slavery...and then, themselves. Then, in alarm, an edict prohibited Roman farmers from selling themselves into slavery. They were required to remain on their farms...and at work.

Spain ran a very different, short-lived empire in the 16th century. It conquered New World civilizations and imported gold and silver on a colossal scale. It was as if they were printing money! This easy money made the Spaniards rich. They used it like America uses her dollars — to buy things from overseas. Pretty soon, the Spanish neglected their own manufactures and their own farming. Prices rose. Spain’s nascent middle class was smothered in the crib.

Are things so different now? The rich get rich. The middle classes get poorer; they have to compete with imperial plunder...riches coming from Asia, bought with dollars that were never earned...and never will be redeemed.

America’s middle classes were happy to sell their own children into perpetual debt servitude. The kids face obligations 5 to 15 times as great as annual output. Unless they revolt, they will have to work their entire lives to pay for their parents’ excesses.

But what will they do when future generations can take no more? They cannot sell themselves into slavery. They’ve already done so. Most face a lifetime of student debt, mortgage debt, and medical debt (aka Medicaid and Medicare), already.

What can they do? Join the revolution!

Regards,

Bill Bonner,
for The Daily Reckoning

26 September 2011

follow on to Valerie's O'Reilly letter

Is the US Monetary System on the Verge of Collapse?
http://lewrockwell.com/orig10/galland37.1.html

A Brief Timeline of US Monetary System Failures

Here’s a brief history of past disruptions here in the United States. Importantly, with the US dollar now the de facto reserve currency of the world, this time around it’s global.

1861 – When the Civil War begins, the dollar is convertible into gold and silver.

1862 – Congress passes the Legal Tender Act and authorizes the issuance of non-redeemable "Greenback" currency. Convertibility into gold and silver is suspended for all US currency.

1863 – National Banking Act authorizes the chartering of banks by the federal government[And this was the real object for the north going to war and the largely Southern Jeffersonian opposition to federal chartering of banks which became the spur toward Jefferson's expositing his nullification ideas which eventually grew into Southern Secession the fight of the 1860s between the sections was over the banking system not slavery although they are connected and much more was involved]... more inserted below

>> the below inserted comments can be found toward the end of the document linked below

http://www.fireeater.org/Pages/Vol_II_2010/912speechRichmond_09Sep2010_bazz.pdf

So why did the north invade? Why was there a war? There was a war because the north
invaded. Let me say that again. There was a war because the north invaded. Let me say that
yet again. There was a war because the north invaded – not because the South seceded. There
was no war in the Soviet Union. Wouldn’t it have been nice if we’d had the Communist Party
under Gorbachev and shouldn’t they thank God they did not have the Republican Party under
Lincoln. Well let me give you an answer as to why the north invaded. There was a time early
after the war in which the north was very honest about this. In 1877, Charles Bancroft
distinguished northern historian gave the correct explanation in his book, The Footprints of Time:
A Complete Analysis of our American System of Government. It’s what Thomas Dilorenzo has
called mercantilism – that’s our American System of government. He’s telling you what our
American System of government is and why there was a war. “While so gigantic a war was an
immense evil, to allow the right of peaceable secession would have been the ruin of the
enterprise and thrift of the industrious laborer and the keen eyed business man of the north.
It
would have been the greatest calamity of the age. War was less to be feared.”
…. But an invasion by the north merely to maintain a territorial monopoly on coercion governed
by northern commercial interests was and is morally reprehensible. Americans should be deeply
ashamed of it. But of course they are not. If that war were fought today with today’s population
that war would have yielded over 5 million battle deaths – not to mention wounded and missing.
But to acknowledge the stark immorality of the north’s invasion would be to throw into question
the legitimacy of the vast centralized regime built upon it. --- {Today’s America in other words).
– Dr. Donald Livingston, excerpt of a speech to the SD Lee Institute, Arlington, Virginia April 2007


1865 – A 10% tax is levied on the issuance of bank notes by state-chartered banks, effectively ending that practice.

1879 – The US Treasury resumes redeeming dollars for gold and silver.

1900 – Passage of the Gold Standard Act, adopting the gold standard by the United States and demonetizing silver.

Specifically, the act provided for "...the dollar consisting of twenty-five and eight-tenths grains (1.67 g) of gold nine-tenths fine, as established by section thirty-five hundred and eleven of the Revised Statutes of the United States, shall be the standard unit of value, and all forms of money issued or coined by the United States shall be maintained at a parity of value with this standard..."


But 33 years later, to gain the power to inflate the currency and collect the profit from doing so…

1933 – By executive order, Franklin Roosevelt prohibits the private ownership of gold. Congress passes the Gold Reserve Act, which enacts Roosevelt's executive order, abrogates all gold clauses in all contracts public or private, past or future (which cancels the convertibility of Federal Reserve notes into gold), though it confirms the convertibility of US Treasury notes held by foreigners into gold. Eleven years later, the US government takes its show on the road…

1944 – Bretton Woods system adopted with signature countries agreeing to tie the exchange rates of their currencies to the US dollar, which itself is linked to a fixed price of gold. Foreign trading partners retained the right to swap dollars for gold, imposing a de facto restraint on printing more dollars. For all intents and purposes, the US dollar becomes the world’s reserve currency. But 27 years later…

1971 – Nixon abruptly closes the “gold window,” unilaterally reneging on the Treasury's promise to allow foreign governments to redeem dollars for gold. Bretton Woods collapses. With no remaining tie to a tangible, the dollar is reduced to a paper token. The transition to a global fiat monetary system is complete.

Until 40 years go by and the inevitable consequences of giving politicians free rein over money creation become untenable…

Present day – Sovereign debt crisis. Desperate, debt-laden governments around the globe – the bulk of their reserves composed of fiat US dollars and euros at risk of going up in smoke – turn to the only thing they know, printing more money and issuing yet more debt. The global monetary system cracks and heads toward failure with no workable alternative on the horizon.

An Open Letter to Bill O’Reilly by New Yorker Valerie Protopapas

http://freenorthcarolina.blogspot.com/2011/09/open-letter-to-bill-oreilly.html

=========

An Open Letter to Bill O'Reilly

Dear Sir:

Obviously, you are not a stupid man but sadly, your intellect seems non-existent when it comes to your judgment about American leaders. You have stood foursquare against the current socialist trends in the federal government. You have condemned the excesses of Congress and the Administration and the ever growing centralization of power in Washington as well as the trashing of the Constitution. You have mentioned time and again that such excesses are diametric to the founding principles of the nation, flying in the face of that same document—and I have applauded you for your public defense of those republican (with a lower-case "r") principles and the men (and women) who have championed them.

Yet, the other evening, I heard you—yet again—claim that the "gold standard" of American leadership was none other than President Abraham Lincoln. I actually became so enraged I turned off the TV! I could not bear to listen any longer. All that we currently endure we do so because of Abraham Lincoln! It was Lincoln who embraced the movement of power away from the Sovereign States and the People as envisioned by the Founders. It was Lincoln who adopted the socialist/communist ideologies brought into the United States from Europe with the arrival of the so-called "48ers," the mostly German followers of Marx fleeing their failed revolutions in Europe. However, it is also true that Lincoln had adopted those same policies independently before he was influenced by Europe's socialist upheaval. Did you know that Marx adored Lincoln for the very reason that he worked to centralize power in the federal government? And did you know that Lincoln's government and military was filled with Marxists and socialists? It was Lincoln who abandoned all constitutionally imposed restrictions on the federal government and the presidency when he planned and initiated war against states performing an act guaranteed to them in the Constitution—that of secession from a union that was no longer in the best interest of their people. It was Lincoln who deliberately and with malice brought that war to fruition—a war that cost over a million lives both military and civilian and destroyed an entire section of what had been the united (lower-case "u") States for a century or more. And the list goes on and on. There is no more infamous lie in the annals of American history than Lincoln's analysis of the causes of the so-called "Civil War"—"…and war came." War didn't "come," Lincoln brought it into existence in what proved to be a successful attempt to prevent the loss of eleven Southern states and the 75% of the federal revenues paid by those States. Indeed, the South, by Lincoln's time, had become nothing more than a politically impotent economic colony supplying endless revenues to the rest of the Union while being driven ever deeper into poverty.

It was Lincoln who embraced—and profited from—Hamilton's "American System," which today we call "crony capitalism" and which is really nothing other than the enemy of free enterprise, fascism. Lincoln was supported for the presidency by the economic interests of states such as Pennsylvania to which he promised a high tariff to protect their manufactured goods and a continuation of the flow of capital from the South to the North. Lincoln had been a lawyer with one of the railroads supported by such tax-funded largesse and was so successful that he was allowed to choose the eastern terminus for the contemplated trans-continental railroad. It is interesting—and revealing—to note that the property he chose for that site just happened to be owned by him! Lincoln's sobriquet at that time—Honest Abe—was bestowed by his contemporaries for the same reason that the sobriquet "Little John" was bestowed upon Robin Hood's very large lieutenant. In other words, it was a reference to behavior diametric to the appellation and therefore not a complement.

Finally, if you think that we had election fraud in 2008, Lincoln made use of the military to assure his re-election, something that was by no means guaranteed in November of 1864. General Benjamin (Beast) Butler was sent to New York from which he triumphantly informed Lincoln that no Democrats had been permitted to vote. The same happened in other states such as Ohio where both Lincoln and Lincoln's war were not popular. Soldiers were permitted to vote in areas in which they did not live to assure his re-election. Meanwhile, their presence at the polls was a warning to those who might vote Democrat. In fact, in many instances the ballots were color-coded so that the party chosen by the voter was immediately obvious to those partisan "poll watchers" and many Americas were "discouraged" from voting if a wrong color ballot was observed.

There is so much more on Lincoln's illegal, unconstitutional and immoral actions that is a part of the public record and yet, he continues to be revered, even worshipped, by people who despise and reject the things for which he stood and on which he acted. Even the popular belief that Lincoln "freed the slaves" or, in fact, had any feeling for them individually or as a group is nonsense, proven over and over by his own words and actions. He cared nothing for slavery and even less for "the African" and was willing to put slavery into the Constitution in the original 13th Amendment (Corwin) if it would keep the Southern states compliant.

Even the claim so often made that he fought the war to "preserve the union" is a lie though many Northerners were deceived and indeed fought for that stated purpose. First, a union is by its nature voluntary. Coercion at the point of a bayonet is nothing but conquest and occupation, not "union." Then, Lincoln, his government and all of the states who fought ostensibly to preserve the Union were traitors according to Article III, Section 3 of the Constitution. Indeed, the only act defined as treason in that document is the waging of war against any of the signatory states and aiding and abetting in that war. If there was ever an act more worthy of the taint of treason and the openly guilty parties more exposed to public view, it has to be America's "Civil War" in which the federal government—or should I say, the President—declared war on seven (later eleven) signatory states and initiated total war against them. Of course, all of those who supported or permitted this war were themselves traitors to a greater or lesser degree. It is ironic that the taint of treason was spread so liberally—and so successfully—on states that had acted constitutionally in attempting to remove themselves from a hostile and eventually murderous "union" while the actual traitors have been lauded to the skies historically as heroes and "true Americans."

No, Mr. O'Reilly, your "stand" against those attempting to make of what remains of this nation another "Peoples' Republic" cannot be believed so long as you refuse to acknowledge where America started to leave the path of Aristotle, Locke and the Founding Fathers and embrace the governing theories and actions of Hobbes and Marx. Actually, you have only two choices: understand and admit that "the nation's greatest president" was a traitor and a murderer (over a million dead) and repudiate his "vision" for the nation—a federal tyranny—or cling to delusion, deception and myth and, by doing so, render your own message null and void and yourself foolish at best and dishonest at worst. You cannot have Lincoln and liberty.

Valerie Protopapas
New York
========
An Open Letter to Bill O'Reilly