Thursday, March 24, 2011

The Two Coming American Revolutions

The Enemy of my Enemy is NOT my Friend.

In the late 1700′s there were two historic revolutions, the American and the French Revolutions. The American Revolution was very much an intellectual revolution as much as it was a military revolution. In the years before the first shot was fired, American Patriots laid the intellectual foundation for the American Revolution. They worked on what America should be and not so much of what they were against. The original Sons of Liberty mounted an intellectual assault on the Empire that the sun never set on. By the time the first shot was fired, our founding fathers had spent years carefully crafting a political and economic system that would ready for when they had control of their destiny.  This system sought to decentralize power so that no Elite could seize power. They also created a Free Market economic system that would ensure the prosperity of future generations. This eventually led to the most powerful nation the world has ever seen.

The French Revolution was more of a revolution of what the people were against, namely the Monarchy. Those that stoked the flames of revolution in France vilified the Monarchy and their huge wealth. The French took out the Monarch and replaced it with an Oligarchy of Terror. With no King to blame, Robespierre and the Jacobins proceeded to terrorize France with their Reign of Terror.  The Jacobins upset society so much that neighbor turned against neighbor, as the Guillotine grew thirsty for more blood. It was not until Napoleon came forward with a vision for what France could be did society turn around.

When the American Empire collapses, we will face two paths. We will either fall into another Dark Ages where fear and terror reign. Or we will have another Renaissance where ideas and freedom are cherished.  Just like the American and French Revolutions, the key for our society, will be what do we stand for and not as much what we are against. I spent six years putting together the Sons Of Liberty Academy to help forge the intellectual foundation of the next American Revolution. I made the Academy for free with the hope of reaching a wider audience to help build a brighter future for all of us. My ultimate goal is to get people educated and start thinking about what you stand for.

There are two kinds of Revolutions on the horizon for America. The first, is a get back-to-basics Constitutional Revolution. This kind of patriotic revolution is a non-violent, non-compliant movement that is centered on education and leaderless resistance. The Constitutional Revolution seeks to level the playing field by eliminating the core of our problems our debt based, fractional reserve, fiat money system and mercantilism and replace it with honest money and Free Market capitalism. It also seeks to have a level field of justice, campaign finance and decentralize political power away from the Elite. This Revolution would bring home the troops from our 777+ military bases and practice non-intervention. They would seek to level unfair taxes and regulations that benefit the Elite and hurt the rest of us. In short, they would legalize the Constitution with the right to bear arms, freedom of speech, freedom of the press, Habeas Corpus, and so on.

The second kind of Revolution is one that is making it on to my radar is very different, even though they seem to have the same bad guys in their sights. I have always watched a lot of documentaries. Recently there have been a lot of very slick documentaries attacking Wall St, The Federal Reserve, Debt, Housing Bubble, Corporate Greed, Wars, Outsourced Jobs and Big Oil. All of these documentaries are stunning attacks at the very real problems our country is facing. For the most part there is nothing to argue against. We are going down the wrong road and there is a group of Elite that are absolutely gutting America and raping the world for their own personal profit and power.

The problem is, for the most part, these documentaries don’t offer a solution, only an attack on “Capitalism.” This Anti-Capitalism or Collectivism Revolution seeks to paint a broad brush and label all Capitalism as evil. In reality the kind of Capitalism we have today has nothing to do with the Free Market Capitalism that made America great. Our Capitalism today is a Collectivist monster that is better described as Crony Capitalism, Crisis Capitalism, State Capitalism, Corporate Capitalism, Gangster Capitalism or Mercantilism. These economic systems have much more in common with their Collectivist cousins Fascism, Socialism, and Communism than Free Market Capitalism. The underlying tone to all of these documentaries are hinted at with phrases like progressive politics, stronger worker’s rights, redistribution of wealth, health care is a right, higher taxes and regulation… you know Socialism. They won’t come out and flash the Lenin or Marx posters, but the influence is there.

“ALL SOCIETIES ARE CAPITALISTIC. The ONLY difference is who owns/controls the Capital. You don’t really think Communists are trying to get rid of Capital do you? Your either going to live under a Monopolistic Capitalistic Oligarchy, or a Competitive Capitalistic Republic. There aren’t any others.” Sui Juris

The defining power of Free Market Capitalism is failure. When you fail in a free market, you alone bear the burden of your loss. When you succeed, you alone are the beneficiary of your labor. Through your risk of failure, you seek to make the best decisions and take educated risks. Through failure, you seek to improve your product or process over and over, until you succeed. Thomas Edison failed 1,000 times before he created the light bulb.

In a Free Market, there are no Central Banks rigging the price of money. There are no “too big to fails.” There are no bailouts. There are no redistribution of wealth. There are no committee to set prices or regulations. There are no Government subsidies. Government would only act as a referee ensuring a good clean fight on a level playing field.

The problem we face now is that our “Capitalism” is corrupt and only serves the Elite. Those with the political connections get bailed out of their failure and spread the cost among those who were prudent or worse, those that succeeded. In reality we have a two tiered system in which most of America gets the failure of Capitalism and the Elite get the Socialism of being bailed out on our backs. In essence we privatize profits and socialize loses. This creates a moral hazard where those that are alleviated of the risk of failure, take more and more risk, in search of greater profits. This ultimately leads to a crisis which, is where we are today.

“I have had men watching you for a long time and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the Bank. … You are a den of vipers and thieves.”

—Andrew Jackson, 1834, on closing the Second Bank of the United States;

The Constitutional Revolution seeks to create a level playing field with honest money at it’s core. They would eliminate the Fed and the ability for them to print money out of thin air that taxes us through inflation. They would let the “too big to fails” fail. They would put the criminal CEO’s in jail for their schemes. They would allow the Free Market to find proper CEO compensation, because the tricks CEO’s use to pump up their wealth, would be eliminated. They would eliminate Corporate Welfare and anti-competition regulations. In a truly Free Market, we would not have this vampire squid sucking all of the wealth from the creation and profiting off of asset bubbles. The Constitutional Revolution would decentralize power. This would localize any crisis into their immediate area of influence and not this globalized crisis of the month. In short, this system would be a system of volunteerism and responsibility with no coercion or violence.

The Anti-Capitalist or Collectivist Revolution would use the brute force of the masses to redistribute wealth, just like the Bolshevik Revolution. They would seek to whip up the crowd into a frenzy and offer them a free lunch. The Bolshevik Communists overthrew the Czar with their motto of Bread, Land and Peace. This time around the rallying cry might be Big Macs, iPads, and Porn. The problem with this type of revolution is that it gets rid of one Elite, for another. (Some pigs are more equal than others…) They also run into the inevitable problem of running out of people’s money to steal. Or in the case of the French Revolution, you run out of CEO’s heads to chop.

The fatal flaw with all Collectivist Economic systems is that it relies on the ridiculous notion that a tiny group of individuals are smarter that everyone’s best choice. In all of these Collectivist programs, from Crony Capitalism to Communism, there is a centralized group out to rig the market for some desired outcome. In extremis, the command economy seeks to control every economic decision regardless of the value or happiness of the end consumer.  The Free Market is a living-breathing organism that sends messages to production, consumption, distribution, and the happiness of the whole, through the pricing mechanism. The Free Market eliminates mis allocations of capital and resources. The Free Market balances supply with demand. (Silver has been abused to the point of extinction because of market manipulations.)

Collectivists do not care if you are happy; they only care if you are controlled. There are 4 ways to spend money.

1. You spend your money on yourself. You spend money with great care to give you the best value and in a way that makes you most happy. This closely resembles the Free Market.

2. You spend someone else’s money on yourself. You do not care as much for the value but you still care about what makes you happy. This resembles what the Elite get in their Crony Capitalism.

3. You spend your own money on someone else. You care a little less about the value and you certainly care a lot less about the happiness of the recipient.  (Think of your Grandmother giving you socks for Christmas…) This resembles Charity.

4. You spend somebody else’s money on somebody else. You do not care for the value or the happiness of anyone involved. This is resembles Communism.

In the Constitutional Revolution there would be an economic system where your property rights are protected and you are the most happy. The Anti-Capitalists or Collectivists just want to steal from those that stole from us, so that they can be the ones to redistribute the money. They only way to a new Renaissance is to create a new world with new rules and bring legal justice to those that have committed the crimes. The path to the new Dark Ages lies in violence, coercion, witch-hunts, more regulation, concentration of power and fear.

I wrote and article called The Silver Bullet and the Silver Shield that sought to strike the Achilles Heel of JP Morgan. The strategy was a non-violent leaderless action that exposed a fraud that would strike at the heart vampire banking system. This would force the Free Market to reestablish silver as a precious metal. This will profit the Aware who see silver’s story and strike at the heart evil Elitist system that dominates humanity with debt and war.

When I read an article about someone caught on tape plotting to take down JP Morgan, I was interested to say the least. Stephen Lerner was the head of one of the largest unions and he was concocting a plan to destroy JP Morgan, nuke the stock market, and weaken Wall Street’s grip on power, thus creating the conditions necessary for a redistribution of wealth and a change in government. As soon as I heard redistribution of wealth, I knew the rest of the story.

The plan involved people doing a strategic default, not paying their mortgages while they still can, and sucking the capital out of banks to cover those losses. This is nothing new, heck even Max Keiser pushed this idea a couple of weeks ago. This idea does have merit because corporations do this all of the time, it is just good business. That is a volunteered individual action for the best decision that person could make. If you are upside down in a house 20% or more and housing sales just hit an all time low and they are saying it is going to take 20 years for some markets to recover, really, what JP Morgan do?

He goes on to say that student debt is at 1 Trillion dollars, what if all students said, “no mas”? The college trap is sucking the very life from young people. The degree is worthless and its debt is something they cannot get away from through bankruptcy. It is preventing people from buying homes, getting married, and having children. It is another debt where people were systematically induced believe one thing, but did not realize that there was a pound of flesh due in the end.

The next part of Stephen Lerner’s plan was to leverage the Union’s ties with government to force the banks to renegotiate the debt. Stephen is starting to show his progressive side. Now through coercion and the threat of the state, they are out to change the rules for connected parties. The Constitutional solution would be to hack at the root of the evil on Wall St and get rid of the Fed, debt based fiat currency and fractional reserve banking. He says that the unions should strike and make one of the issues that the city must get the bankers to lower the debt to the cities. Mr. Lerner is not doing this because he is a good guy; he is doing it so there is more of a pool of money for the Unions to dip into.

He says the key part of the plan is to create uncertainty and disruption, because that is what the Capitalists fear the most. They need to come up with a plan to bring down the stock market and interfere with their, “ability to be rich.” He proposes to march on JP Morgan at the beginning of May and disrupt operations. (Probably May 1st, International Workers Day.) They will attack with this three-point plan.

1. There is plenty of money- they have it.

2. They have the money- we need to get it back.

3. And that the Bankers are using Bloomberg and the government to destroy the Unions.

The truth of the matter is that this whole entire economy is one big Ponzi scheme and Mr. Lerner’s plan does nothing but cause upheaval. It does not offer solutions because they don’t have one. He won’t say it, but I bet he wants to be the one redistributing the wealth of Wall St. (Some pigs are more equal than others…)
He will not create a level playing field.
He will not legalize the Constitution.
He will not return to honest money.
He will not End the Fed.
He will not protect property rights.
He will not let you have a choice.

His plan causes chaos to bring down a paradigm, only for him and his crew to fill the power vacuum, which is exactly what the Bolsheviks did in Russia. They got people all whipped up to take something down and in the void the Communists took absolute power. Attacking JP Morgan does not make them an ally, only another collectivist trying to get something for nothing.

“Hold on, my friends, to the Constitution and to the Republic for which it stands. Miracles do not cluster and what has happened once in 6,000 years may not happen again. Hold on to the Constitution, for if the American Constitution should fail, there will be anarchy throughout the world.” –U.S. Senator Daniel Webster

There are two Revolutions are coming to America.

The Constitutional Revolution has only happened once in history and created the last best hope for humanity.

The Collectivist Revolution has been tried hundreds of times throughout history.

It has a death toll and economic record so horrendous, only a psychopath could enjoy it.

“Two roads diverged in a wood, and I—
I took the one less traveled by,
And that has made all the difference.” -Robert Frost

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