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Monthly Newsletter - July 2016

Don't Confuse the Declaration of Independence with the Constitution byRyanMcMaken

In a video making the rounds in social media lastweek, conservative author Mark Dice performs aseries ofman-on-the-street interviews to show howmost Americans have no idea what IndependenceDaycommemorates.ThepunchlinecomesattheendwhenDicefindsayoungwomanwhocanquotethedocumentthatheapparentlythinkswecommemorateonIndependenceDay.ShesaysafewlinesoutloudandthenDicehigh-fivesher.

Amongthethousandsofcommentsunderthevideo,viewersleftcommentssuchas"letthatyoungblondewomanrunforPresident."and"shemademecry."

Unfortunately,thedocumentthewomanwasquotingwasnot theDeclarationof Independenceof July4,1776.ShewasquotingtheConstitutionof1787.

MarkDice seems to be unaware that these are notthesamedocument,thatthetwodocumentsexpressvastlydifferentsentiments,orthattheywereadopted11yearapartinentirelydifferentpoliticalcontexts.

Apparently, for many "patriotic" Americans, anydocument written by a non-specific group ofpoliticiansknownas"theFoundingFathers"willdoforIndependenceDay.

They're Not the Same Thing

ContrarytowhatmanyAmericansseemtothink,thedocument we now call "the Constitution" and theDeclarationofindependencearenotprettymuchthesamethingor"connectedinspirit,"or"twosidesof

thesamecoin."Thetwodocumentswerewrittenbytwodifferentgroupsofpeopleattwodifferenttimestoaccomplishtwototallydifferentgoals.WhiletherewassomeoverlapbetweenthepeoplewhoadoptedtheDeclarationandthosewhoadoptedtheConstitution,theywerebynomeansthesamegroup.And,ofcourse,somepeoplewhosignedtheDeclarationopposedthenewConstitution.

Nor is there similarity in the content of the twodocuments. The Declaration of Independence is astronglylibertariandocumentthatjustifiessecessionandthemilitaryoverthrowofgovernmentinstitutions.

TheConstitution,ontheotherhand,wasdesignedtoincreasethetaxingpowerofgovernmentandcreatea stronger national government overall. Drawingits support from a hysterical overreaction to ShaysRebellion by the some wealthy politicians of theUnitedStates(i.e.,GeorgeWashingtonandAlexanderHamilton), theConstitutionwassupportedbymanywhohopedtheConstitutionwouldmakeiteasiertoarrest and prosecute people who— like the Shaysrebels—didn'tmaketheirmortgagepayments.

Meanwhile, the Declaration — which is an act offormal treason— lays out the reasons why peopleshouldbeabletothrowoffthechainsofgovernment.Itdoessoconciselyinthesecondparagraph,outlininghow people have certain rights, and governmentexistsforonepurpose:toprotectthoserights.Whengovernmentfailsinthis,"itistheRightofthePeopletoalterortoabolish"thegovernment.

Thedocumentthengoesontoexplainwhy,intheirspecific situation, the Americans' act of rebellionis justified with a list of 28 ways the "legitimate"governmentatthetimehadviolatedtheirrights.

Contrary towhat iscommonlyassertedbymodern-

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the more democratic and more representative statelegislatures.

Many, likeJeffersonandPatrickHenry,would laterassenttoratificationifaBillofRightswasadopted.But later, Jefferson had been forced to concludethateventheBillofRights—theonlygoodpartofthe Constitution— hadn't been enough. By 1798,Jefferson felt it necessary to vehemently supportthe idea that states could nullify federal laws theyfelt violated the rights ofAmericans. If the federalgovernmentoversteppeditsbounds,Jeffersonwrote,statesweretodeclarethefederalactionsinquestiontobe"voidandofnoforce."

Andyet,thisideawascontrarytotheveryspiritoftheConstitutionwhichwasprimarilydesignedtoabolishthis sortofdiscretionand independenceon thepartof states. State-level nullification was relativelyeasy under the old Constitution of 1777. The newConstitutionspecificallyattackedlocalprerogatives.

All this conflict, of course, has today been sweptunder the rug, and we're to suppose that whateverthe saintly "Founding Fathers" were involved withmust all be prettymuch the samewonderful thing.One wonders if the Alien and Sedition Acts — apieceoflegislationthatabolishedfreedomofspeechand freedomof thepress—shouldalsobe reveredbecause"theFoundingFatherswantedit."Afterall,Founding Father (and signer of the Declaration ofIndependence)JohnAdamssigneditintolaw.

IndependenceDayshouldnotbeagenericcelebrationofAmericanpoliticians,eveniftheyworepowderedwigs.Norshoulditbeageneralcelebrationofsomevaguenotionof"America."Onthecontrary,itshouldcommemoratewhattheday'snameanddateimplies:an act of rebellion and secession for the sake ofindependencethattookplaceonJuly4,1776.Whatcamelaterissomethingelseentirely.

day"patriots"whoopposesecession,theDeclarationdoesnot say that secession isnullandvoid if thereisaCongress,orifthereareperiodicelections,orifthegovernmentclaimstobe"democratic."Jefferson'sformula is simple: if the government violates yourrights, you are entitled to abolish it. Prudence, ofcourse,may dictate that secession is inadvisable inmanytimesandplaces,butthispracticalfactdoesnotnegatethemoralrightnessofsecessionandrebellion.

Moreover, It's significant that many so-calledFounding Fathers opposed the new constitution,including Patrick Henry, Samuel Adams, GeorgeMason,ElbridgeGerry,andRichardHenryLee.LeeandGerry,of course,had signed theDeclarationofIndependence a decade earlier. Thomas Jefferson,whowasnotpresentattheConstitutionalConvention,expressedreservationsabouttheConstitution,wanteda bill of rights added, and viewed it as a work inprogress,writingtoJamesMadisonthatitshouldbesubmitted to the people as a draft and then revisedaccordingtotheirwishes:

[A]fterithasbeendulyweighed&canvassedbythepeople,afterseeingthepartstheygenerallydislike,&thosetheygenerallyapprove,tosaytothem`Weseenowwhatyouwish.Sendtogetheryourdeputiesagain,letthemframeaconstitutionforyouomittingwhatyouhavecondemned,&establishingthepowersyouapprove.'

Jeffersoncertainlydidnotassumeconsentonthepartof averageAmericans, since therewas no basis forsuchanassumption.Defendersofthestatusquotodayoften blithely state that "everyone knew" the olderConstitutionhadfailed,andthattherewaswidespreadagreement a new constitution was necessary. But,suchassessmentsarepresumptuousatbest.

After all, if there was so much demand for a newconstitution,whywasthenewconventionconductedin secret? Why did Patrick Henry conclude "Ismella rat"afterassessing theplanbehind thenewconvention?Indeed,seeingthatratificationwouldbeatoughsell,backersofthenewconstitutionwantedspecial ratification committees to sign off on theirnewdocument in order tomake an end run around

Fascism: A Bipartisan AfflictionbyRonPaul

Ifneoconservativesandprogressivestrulyunderstoodfascism,theywouldstopusingthewordasasmearterm.That isbecausebothgroups, alongwithmost


BankNotes -NelsonNash’sMonthlyNewsletter-July2016when discussing the economic benefits of militaryspending.Similarly,someanti-warprogressiveswillsupportlargemilitarybudgetsifsomeofthemoneyisspentintheirstatesorcongressionaldistricts.

Masssurveillanceandlimitsonpersonalfreedomareadditionalhallmarksoffascistregimes.Whilethereisamovementto“reform”thepolicestate,fewwanttoabolishmasssurveillance,civilassetforfeiture,policemilitarization,andotherpolice-statepoliciesadoptedinthenameofthewarsonterroranddrugs.Thefederalgovernmenthasevenusedforcetostoppeoplefromsellingrawmilk!Attemptsbyprogressivestosilencepoliticalopponentsaremoreexamplesofhowmanysupposedly anti-fascist Americans are embracingfascistpolicies.

The growth of the welfare-warfare state has beenaccompanied by an increase in presidential power.This centralization of power, and the support itreceivesfromthepoliticalclassisonemoreindicationofthefascisticnatureofourcurrentregime.Ofcourse,manyinCongresswillfight toreinintheexecutivebranch,aslongastheoccupantoftheWhiteHouseisoftheopposingparty.EventhefiercestopponentsofexcessivepresidentialpowerinstantaneouslybecomelapdogswhentheirpartywinstheWhiteHouse.

Foralltheirallegedanti-fascism,today’sneoconnedconservativesandprogressivesbothsupport theuseofforcetoreshapesocietyandtheworld.Thisisthedefiningcharacteristicnotjustoffascists,butalsoofauthoritarians. The true anti-fascists are those whoreject the initiation of force. The true path to realfreemarkets,peace,andindividuallibertystartswithrejecting the bipartisan authoritarianism in favor ofthenon-aggressionprinciple.

political figures and commentators, embrace fascistideasandpolicies.

Fascism’s distinguishing characteristic is a “mixedeconomy.”Unlikesocialistsandcommunistswhoseektoabolishprivatebusiness,fascistsarecontenttoletbusinessremaininprivatehands.Instead,fascistsuseregulations,mandates,and taxes tocontrolbusinessandrun(andruin)theeconomy.Afascistsystem,then,isonewhereprivatebusinessesservepoliticiansandbureaucrats insteadof consumers.Does themodernAmericaneconomynotfitthedefinitionoffascism?

Fascismbenefitsbigbusinessesthatcanaffordthecostof complying with government regulations, unliketheirsmallercompetitors.Bigbusinesses,whichhavemorepolitical influence thanentrepreneursor smallbusinesses,alsosignificantlybenefitfromgovernmentsubsidies. In order to maintain their power, bigbusinesses finance the “deep state”— the networkoflobbyists,journalists,thinktanks,bureaucrats,andcongressionalstafferswhoworkbehindthescenestoshapegovernmentpolicy.

Obamacare is an example of fascism that is oftenmislabeled as socialism. Obamacare did not createa government-run “single payer” system as wouldexistunder socialism. Instead,Obamacare extendedgovernment control over health care via mandates,regulations, and subsidies. The most infamous partof Obamacare— the individualmandate— forcesindividuals to purchase a product from a privateindustry.

ModernAmerica’smilitaristicforeignpolicyaimedatpolicingandperfectingtheworldisanotherexampleof fascism that enjoys strong bipartisan support.Bothright-wingneoconsandleft-winghumanitarianinterventionists claim our supposedly noble goalsjustifyanyandallactionstakenbytheUSgovernment.Thus,thesesupposedhumanrightschampionsdefendthepreemptivewar,torture,andpresidentialkilllists.

Many politicians supporting a militaristic foreignpolicyaremoreconcernedwithspreadinglargessetothemilitary-industrial complex thanwith spreadingdemocracy.This iswhysomesupposedfree-marketconservatives sound like PaulKrugman on steroids

Why Socialism Will Always FailbyLudwigvonMises

The director wants to build a house. Now, therearemanymethods that can be resorted to. Each ofthemoffers, from the point of viewof the director,certainadvantagesanddisadvantageswithregardtothe utilization of the future building, and results in



technologicaldescriptionof theavailableproducers'goodsintermsofphysicsandchemistry.Thelocationofeachofthemmustbetakenintoconsiderationaswellastheserviceablenessofthecapitalinvestmentsmadeinthepastfortheirutilization.Thedirectordoesnot simplyhave todealwithcoalas such,butwiththousandsandthousandsofpitsalreadyinoperationinvariousplaces,andwiththepossibilitiesfordiggingnewpits,withthevariousmethodsofminingineachof them,with the variousmethods for utilizing thecoal for the production of heat, power, and a greatnumber of derivatives. It is permissible to say thatthepresent stateof technological knowledgemakesitpossibletoproducealmostanythingoutofalmosteverything.Ourancestors,forinstance,knewonlyalimited number of employments forwood.Moderntechnology has added a multitude of possible newemployments.Woodcanbeusedfor theproductionofpaper,ofvarioustextilefibers,offoodstuffs,drugs,andmanyothersyntheticproducts.

Today two methods are resorted to for providingacitywithcleanwater.Eitheronebrings thewateroverlongdistancesinaqueducts,anancientmethodlongpracticed,oronechemicallypurifies thewateravailable in the city's neighborhood.Whydoes onenotproducewatersyntheticallyinfactories?Moderntechnology could easily solve the technologicalproblems involved.The averageman in hismentalinertia is ready to ridicule such projects as sheerlunacy.However, theonlyreasonwhy thesyntheticproduction of drinking water today--perhaps not ata later day--is out of the question is that economiccalculationintermsofmoneyshowsthatitisamoreexpensive procedure than othermethods. Eliminateeconomic calculation and you have no meansof making a rational choice between the variousalternatives.

The socialists, it is true, object that economiccalculationisnotinfallible.Theysaythatthecapitalistssometimes make mistakes in their calculation. Ofcourse,thishappensandwillalwayshappen.Forallhuman action points to the future and the future isalwaysuncertain.Themostcarefullyelaboratedplansarefrustratedifexpectationsconcerningthefutureare

adifferentdurationofthebuilding'sserviceableness;eachofthemrequiresotherexpendituresofbuildingmaterials and labor and absorbs other periods ofproduction.Whichmethodshouldthedirectorchoose?He cannot reduce to a common denominator theitemsofvariousmaterialsandvariouskindsoflabortobeexpended.Thereforehecannotcomparethem.He cannot attach either to thewaiting time (periodof production) or to thedurationof serviceablenessadefinitenumericalexpression. Inshort,hecannot,in comparing costs to be expended and gains to beearned, resort to any arithmetical operation. Theplansofhisarchitectsenumerateavastmultiplicityof various items in kind; they refer to the physicalandchemicalqualitiesofvariousmaterialsandtothephysicalproductivityofvariousmachines,tools,andprocedures.Butalltheirstatementsremainunrelatedtoeachother.Thereisnomeansofestablishinganyconnectionbetweenthem.

Imagine the plight of the directorwhen facedwithaproject.Whatheneeds toknowiswhetherornottheexecutionoftheprojectwillincreasewell-being,thatis,addsomethingtothewealthavailablewithoutimpairingthesatisfactionofwantswhichheconsidersmoreurgent.Butnoneofthereportshereceivesgivehimanycluetothesolutionofthisproblem.

Wemayforthesakeofargumentatfirstdisregardthedilemmasinvolvedinthechoiceofconsumers'goodstobeproduced.Wemayassumethatthisproblemissettled. But there is the embarrassing multitude ofproducers'goodsandtheinfinitevarietyofproceduresthat can be resorted to for manufacturing definiteconsumers' goods. Themost advantageous locationofeachindustryandtheoptimumsizeofeachplantandofeachpieceofequipmentmustbedetermined.Onemustdeterminewhatkindofmechanicalpowershouldbe employed in eachof them, andwhichofthevariousformulasfortheproductionofthisenergyshouldbeapplied.Alltheseproblemsareraiseddailyinthousandsandthousandsofcases.Eachcaseoffersspecialconditionsandrequiresanindividualsolutionappropriate to these data. The number of elementswith which the director's decision has to deal ismuch greater thanwould be indicated by amerely


BankNotes -NelsonNash’sMonthlyNewsletter-July2016dashedtotheground.However,thisisquiteadifferentproblem.Todaywecalculatefromthepointofviewofourpresentknowledgeandofourpresentanticipationoffutureconditions.Wedonotdealwiththeproblemofwhetherornotthedirectorwillbeabletoanticipatefutureconditions.Whatwehave inmindis that thedirector cannot calculate from the point of view ofhisownpresentvaluejudgmentsandhisownpresentanticipationsoffutureconditions,whatevertheymaybe.Ifheinveststodayinthecanningindustry,itmayhappen that a change in consumers' tastes or in thehygienicopinionsconcerningthewholesomenessofcannedfoodwillonedayturnhis investmentintoamalinvestment.Buthowcanhefindouttodayhowtobuildandequipacannerymosteconomically?

Some railroad lines constructed at the turn of thecenturywouldnothavebeenbuiltifpeoplehadatthattimeanticipatedtheimpendingadvanceofmotoringandaviation.Butthosewhoatthattimebuiltrailroadsknewwhich of the various possible alternatives forthe realization of their plans they had to choosefrom the point of view of their appraisements andanticipationsandofthemarketpricesoftheirdayinwhichthevaluationsoftheconsumerswerereflected.Itispreciselythisinsightthatthedirectorwilllack.Hewillbe like a sailoron thehigh seasunfamiliarwith themethods of navigation, or like amedievalscholar entrusted with the technical operation of arailroadengine.

Wehaveassumedthatthedirectorhasalreadymadeuphismindwithregardtotheconstructionofadefiniteplantorbuilding.However,inordertomakesuchadecisionhealreadyneedseconomiccalculation.Ifahydroelectric power station is to be built, onemustknowwhetherornotthisisthemosteconomicalwaytoproducetheenergyneeded.Howcanheknowthisifhecannotcalculatecostsandoutput?

Wemayadmitthatinitsinitialperiodasocialistregimecouldtosomeextentrelyuponoftheprecedingageofcapitalism.Butwhatistobedonelater,asconditionschangemoreandmore?Ofwhatusecouldthepricesof1900beforthedirectorin1949?Andwhatusecanthedirectorin1989derivefromtheknowledgeofthepricesof1949?

The paradox of "planning" is that it cannot plan,becauseoftheabsenceofeconomiccalculation.Whatiscalledaplannedeconomyisnoeconomyatall.Itis justasystemofgropingabout in thedark.Thereisnoquestionofa rationalchoiceofmeans for thebestpossibleattainmentoftheultimateendssought.What is called conscious planning is precisely theeliminationofconsciouspurposiveaction.

Seeing the State for What It IsbyMatthewMcCaffrey

Why is it so difficult to explain the problemsgovernment creates?Despite centuries of logic andevidence,well-intentionedpeopleonboththeleftandrightstillinsistthatgovernmentisthesolutiontoallourwoes.

Publicpolicyalways restsonviolenceor the threatthereof.

Weneedtobettercommunicatethebasicfactsabouthowpublicpoliciesreallywork.Forexample,manypeopledon’tknowthattheminimumwagehurtsthoseit’ssupposedtohelp;instead,apriceflooronlaborisseenasacompassionateresponsetocorporategreed.

But a lack of economic education isn’t the onlyproblem.There’sanevensimplerissueatstake:mostpeople don’t realize what it means for governmentto“solve”aproblem tobeginwith.The realitiesofgovernmentinterventionareamysterytomostvoters.And there’s one ugly fact in particular fromwhichtheyaresafely insulated:publicpolicyalways restsonviolenceorthethreatthereof.

Thisuncomfortable truthisalmostnevermentionedin public calls formore government restrictions oneconomicandsociallife.Draggingitintothelightisvitalinmakingthecaseforafreesociety.

The problem is that people’s thought process aboutpublic policy (itself a euphemism for economiccontrol) is incomplete. Usually, when people see aproblem,theyhaveageneralideaofhowtheworldwilllookwhenit’sbeensolved.Yettheyoftencan’tarticulatehowtogetfromheretothere.



Enterthe“thereshouldbealaw”mentality:ifthere’sa problem, government should solve it, and that’sthat.Buthowwill itbesolved?Naturally, therearealwayspolicyproposalsavailable.What’smissingisadiscussionofwhatthelawswillmeaninpractice;not only are their economic effects misunderstood,themeansusedtoachievethemare,too.

Politicalmeansalwaysinvolveviolenceorthethreatof violence. In someways, this isn’t controversial:after all, the modern state is typically defined as amonopoly of violence. But in the policy arena, theintrinsic violence of government is shrouded in therhetoricofcompassionandsocialjustice.Asaresult,policieslikeminimumwages,licensinglaws,tariffs,and closed borders are just abstractions to mostpeople.Theyhavenohumanmeaning.Makingthemrealcanhelpusallseethestateforwhatitis.

For example, consider how attitudes might changeif thevotingpublicunderstood thatminimumwagelaws are threats of violence against relatively pooranduneducatedworkerstryingtomakealiving.

Or that licensingandzoning lawsarepolice threatsagainst aspiring entrepreneurs in poverty-strickencities.

Orthattariffsmeanthatregulatorsstandready,withgunsifnecessary,todefendtheprivilegesofdomesticlaborunionsfromthepeaceful tradeofdeveloping-worldentrepreneurs.

Orthatclosedbordersmeanexpandingpolicepowerso government agents can break downdoors in thedeadofnighttotakeparentsawayfromtheirchildren.

Ineachcase,thelawisathreatofviolentenforcementagainstnonviolentactions.Obeyorgotojail.Resistandfacethephysicalforceofthestate.

In the policy arena, the intrinsic violence ofgovernmentisshroudedintherhetoricofcompassionandsocialjustice.

There are as many potential items on this list asthere are government interventions. Even withoutconsidering their disastrous economic effects, eachrestsonitsownformofcoercion.

Tragically,theviolenceofthesepoliciesis“unseen.”Making it visible can undermine public policy andmakeaworldofdifferenceforsomeoftheleastwell-offmembersofsociety.

Thisstepwillnotbeenough:we’veseenthatmanyAmericansareonlytoohappytoturnablindeyeto—andevendefend—politicalviolence, for example,whenit’sinitiatedbythepolice.Economicreasoningalonewill not helphere:what is needed is amoraleducation emphasizing the value of human life andthevalueoftheideasandinstitutionsthatimproveit.

Seeingthestateforwhatit iswillnotchangeeverymind,butat least itwillshatterafewpairsofrose-colored glasses. More importantly, it will give themoral high ground back to the peoplewho deserveit:thosewhofavorpeacefulsocialcooperationratherthanasocietyrootedinforce.

Matthew McCaffrey is assistant professor ofenterpriseattheUniversityofManchesterandeditorof Libertarian Papers.

The Keynesian Blessing: Americans Are BrokebyWilliamL.Anderson

WriterNealGabler recently“confessed”his“secretshame”inanAtlantic Monthlyarticleonhowahugepercentage of middle-class Americans are livingbeyondtheirmeans,existingpaycheck-to-paycheck,andaremiredinpersonaldebt.Hewrites:

I never spoke about my financial travails, noteven with my closest friends—that is, until Icametotherealizationthatwhatwashappeningto me was also happening to millions of otherAmericans, and not just the poorest among us,who,bydefinition,struggle tomakeendsmeet.It was, according to that Fed survey and othersurveys,happeningtomiddle-classprofessionalsand even to those in the upper class. It washappening to the soon-to-retire as well as thesoon-to-begin.Itwashappeningtocollegegradsaswellashigh-schooldropouts.Itwashappening


BankNotes -NelsonNash’sMonthlyNewsletter-July2016allacrossthecountry,includingplaceswhereyoumightleastexpecttoseesuchproblems.IknewthatIwouldn’thave$400inanemergency.WhatI hadn’t known, couldn’t have conceived, wasthatsomanyotherAmericanswouldn’thavethemoneyavailabletothem,either.

The article is worth reading if only to track thespending habits and lifestyle of someone who hasdonewellincome-wise,butnowiscaughtinahugefinancial trap, and thingswill only deteriorate fromthere.Gabler tries to find and fix the blame, and itranges from the banks to individuals to “keepingupwiththeJoneses.”That isallwellandgood,buthefails topointout theroleof theFederalReserveSystemandthepoisonousideologythatundergirdsallFedactions:Keynesianism.

No Emergency Funds: A Triumph for Keynesians

There is a sad irony inGabler’s article, and that isthatwhatheunderstandsasarealfinancialcrisis inmiddle-classhouseholdsactuallyistheideal state of thingsviatheKeynesianlensofeconomicthinking.Intheupside-downworldofKeynesianism,thefactthatmostAmericansnowlivehand-to-mouthwithoutanyappreciable savings isa triumphand is thekeytoprosperity,atleastintheLandofKeynes.Letmeexplain.

In the 1950s, the so-called Keynesian RevolutionbegantosteamrollitswaythroughAmericanuniversityfacultiesas“TheNewEconomics”becametherage.JohnMaynardKeynes,inhisalleged“path-breaking”book,TheGeneral Theory,haddemonstratedthatfarfromblessinganeconomywiththemeansofcapitalformation, household savings actuallywere a curseand when “too many” households saved too muchmoney, the so-called Paradox of Thrift would takehold and actually drivedown the economy into thedreadedLiquidityTrap.

Americans at the time either were not aware ofthis newHolyDoctrine and continued to save. Forexample,Iknewasinglemotherwhoformostofherworkingcareermadelittlemorethanminimumwage,yetuponretirementwasabletopurchaseahomewithcashfor$100Kandshehascontinuedtolivewellinto

her 90s. Hermother and fatherwere poor farmers,yet theymanaged to saveanastonishingamountofmoneydespitetheirverylowincomes.

This was not unusual back then. Americans wereknown for their savings habits and continuedto save even as Keynesian economists began toadmonishthemfordenyingthattheeconomyneeded“spending”tokeepusat“fullemployment.”LikeallProgressives,KeynesiansbelievedthatifAmericanswerenotwillingtodowhatwasnecessarytosustainfullemploymentlevels,thenthefederalgovernmentwould need to “nudge” them in compliance, andAmericanpoliticianswereall-too-happy toearn thepraiseoftheprofessoriate.

AndsolittlebylittletheUSgovernmentchangedthiscountry’seconomiclandscapeinordertoconformtotheKeynesian “ideals.”Themost important officialchange in American policy was the promotion ofinflation.True,officialsclaimed that inflationwasabadthing,andcouldbe“fixed”byapplicationofwageand price controls, but at theKeynesian-dominatedFederalReserveSystem,officialsalreadyweresetting“inflationgoals”inordertokeeptheeconomyfromslippingintodeflation.

WhileKeynesian“theory”sproutsmanymyths,oneofthemainonesisthatinflation(readthat,monetarydebasement)helpstocreatefull-employmentandthatit is necessarybecause, if left to its owndevices, afree-marketeconomyquicklywilldeteriorate intoadownwarddeflationaryspiralandendupinaperverse“equilibrium” in which unemployment is high andeconomic activity is low. Only inflation can stopthe spiral, and if it isn’t “high enough,” accordingtoKeynesians,thenthesystemwillimplodeintothedepthsofdeflationarydepression.

ToAustrian economists, none of this makes sense,atleastifoneisspeakingaboutrealeconomics,notpolitics.IfKeyneswerecorrect,thenthegovernment’sinaction during the recession of 1921 would haveresultedinamajordepressionduringthe1920s.Forthatmatter,sincethegovernmenthadnotintervenedinpreviousdepressionsandrecessions,theKeynesianlogicwouldhavemeantthattheUSeconomywould



havebeeninpermanentdepression.

The Benefits of Saving and Investment

The historical results parallel economic theory.Economiesdonotgrowbecausegovernmentsinjectdoses of “aggregate demand;” they grow becauseentrepreneurs develop better uses of factors ofproduction that permit more goods to be producedand also allow formore resources to be applied inareaswheretheyhavenotbeenused,oratleastusedinlesseramounts.

Take the development of thewashingmachine, forexample.Beforewashingmachinesweredevelopedandmade available to households, washing clotheswas a huge chore that might take at least one dayandmaybeevenlongerthanthat.Forthemostpart,householdlaundrychoreswereperformedbywomenwho worked for hours to clean clothes and othermaterials.

Washingmachines,however,enabledhousewivestodomorelaundryinlesstime,thusallowingthemtoapplysomeof theirotherskillselsewhere.Multiplythissortofthingacrossaneconomy,andonecanhaveanideahowthedevelopmentofsuchgoodsenableseconomicgrowth.

Contra Paul Krugman and other modern-dayKeynesians, capital formation does not exist as a“given.” Instead, capital formation not only is afunction (to use a mathematical term loosely) ofsavings, it must be so because modern economiesinvolve a mix of capital and consumer goods, andtheirratiosarerelatedtoindividualtimepreferences.One cannot consume all of its present productionand simultaneously abstain from consumption inordertocreatecapitalgoodsthatwillproducemoreconsumptiongoodsinthefuture.

Forexample,ifpeople(likeourancestors)arewillingto save large portions of their incomes, it is notbecausetheyareirrationalorare“hoarding”money(asKrugmanwouldtellus),butratherbecausetheywishtopostponesomecurrentconsumptionin order to be able to consume more in the future. Investorstake that savings pool and then invest in the kinds

ofcapitalgoodsthatwouldallowforthecreationofevenmoregoodstobeconsumedatafuturetime.

The key indicator in whether or not investors aregoing to invest in long-term capital (that results infewerconsumptiongoodsmadeintheshortrun,butbrings about much more consumption in the longrun) is the interest rate. In a free-market economy,low interest rates mean that individuals are savinglargeamountsoftheirincome,makingalargerpoolof“liquidcapital”available,whilehighinterestratesindicate thatconsumersprefer toconsumenowandsaveless—preciselythestateofthingsrightnow.

Keynesians, on theother hand, claim that since thetrueeconomic“multiplier”isequalto1overtherateof savings, then the less a society saves, the moreeconomicgrowththateconomywillexperience.(Forexample,ifallindividualsinasocietysave10percentofincome,thenthateconomyhasamultiplierof10.Iftheindividualssave5percent,thenthemultiplieris20.ItremindsmeofthedittyweusedwhenIwasinschoolinwhichwe“proved”thatthelesswestudied,themoreweknew.)

Low Interest Rates vs. Reality

Of course, interest rates arenot high, and certainlydon’t reflect societal time preferences. A societyfeaturingadearthofsavingsshouldhavehighrates,not low ones. Gabler’s article chronicles a life ofspending andnot saving,whether it is paying for adaughter’sweddingorcomingupwithlargeamountsofmoneytopayforapriceyelitecollegeeducationforthechildren.WiththeFedsuppressinginterestratesto less than 1 percent, there almost is no incentiveforpeopletoputmoneyintosavingsaccounts,giventhere isalmostnoappreciablereturn,andfewofusare equipped to enter the equities markets withoutmaking serious investment errors. Multiply thatacrosstheeconomyandonefindsadearthofsavingsandapreferenceforpresentconsumption—exactlywhatKeynesandhismodern-dayfollowersclaimisthe formula for prosperity:we spendourselves intowealth.

So, we are left with a huge irony. We have lowinterestrates,butclearlythekindoflong-termcapital


BankNotes -NelsonNash’sMonthlyNewsletter-July2016investmentisnotcommonintheUSeconomyatthepresent time.Firms and entrepreneursare investinginlong-termcapitaloverseas,butnothere,giventhatevenwhilepoliticianssuchasBernieSanders,DonaldTrump,andHillaryClintonaredecryingthatfact.Ofcourse,given thehostilityof theAmericanPoliticalClass to private investment and given the fact thatSandersisrunningacampaignbasedonattackingandultimately destroying private enterprise in theUSA(withClinton not far behind), investors are readingthe tea leaves and taking their money elsewhere,somethingthatinfuriatesthePoliticalClass.

(Not surprisingly, the Political Class is demandinglawsthateffectivelywouldbuildaBerlinWallaroundAmericaninvestment,makingitillegalforAmericanstoinvestoutsidethiscountry.Onedoesnotneedtobeveryastutetoknowimmediatelywhatadisasterthatwouldbring,butgiventhatthePoliticalClassexistsby looting others, itsmemberswould be somewhatshieldedfromtheeconomiccarnage.)

Lest anyone doubt that current American savingsrates are low, the chart below presents an ominouspicture.Italsodemonstratesbeyondadoubtthatthebiggest offender in conducting policies thatdiscouragedsavingswasnottheObamaadministration—asbadasitisbuttheBushadministrationwithitshousingbubbleandexposedwhatPeterSchiffoftenhas called the “phony economy.”

Thechartitselfexposesmuchaboutthepast35yearsthatisharmfultotheeconomy.Yes,therehasbeentheriseofthehigh-technologysectorandtheimprovements

in transportation and telecommunications, thanks tothederegulation efforts of theCarter administration(something for which Carter never takes creditbecausehisDemocraticPartyideologytellshimthatprivateenterpriseandprofitarebadthings).

The steepest drop in the rate of savings camewiththeClintonandGeorgeW.Bushadministrations,andIdon’tthinkthatweshouldbesurprisedthatduringthose years, the Fed actively pushed down interestratesandhelpedcreatetwomassivefinancialbubbles,eachofwhichburstandcreateddestruction in theirwake. From the Fed’s own statistics, savings hassomewhatrecoveredduringtheBarackObamayears,even though Obama’s administration is extremelyhostiletowardsavers.

But here we are.After decades of what essentiallycould be called a new “IndustrialRevolution”withthe advent of computers and the internet, the USgovernment has managed through its monetaryauthoritiesandthroughitsotherpoliciestodecimatesavingsand leavemillionsofAmericansfinanciallyvulnerable.

Ithasbeennoaccident.Peopleareabletoresistforceonlyforsolongbeforegivingin,andgiventhattheKeynesianwar on savings has continued unfetteredfordecades,andhasbeenblessedatthehighestlevelsof government and academe, not tomention toutedin thenewsmedia,we shouldnot be surprised thatpeople save less. We also should not be surprisedtoknowthatallofuswillpayasteeppriceforthisspendthriftwayof life, evenas thepolitical classesscrambletoprotectthemselvesfromtheconsequencesoftheiractions.

Nelson’s Newly Added Book Recommendations

https://infinitebanking.org/books/

Modern Times: The World from the Twenties to the NinetiesbyPaulJohnson

Toil, Taxes, and TroublebyVivienKellems



A Stark Choice byYuriMaltsev

Today we have two presumptive candidates and itisobvioustoanyonewiththeabilitytothinkclearlythatTrump’sopportunitycostisHillary.ItisnotGaryJohnsonoranyothercandidate.

Whether you dislike his style, his arrogance, orwhatever else you cannot stomach about him, it istimetorealizethatthechoiceisasstarkasthechoicebetweentheWhitesandtheRedsinRussiain1917.AsbadasyouthinkthatthelastRussianCzarNicholasII,ChiangKai-shekofChina,orFulgencioBatistaofCubawere,theywereall“humanists”incomparisontothesocialistbloodbathsthatsucceededthem.

ThenightmarishnatureofsocialismwaswellexposedbyLudwigvonMises:

“Amanwho chooses between drinking a glassof milk and a glass of a solution of potassiumcyanidedoesnotchoosebetweentwobeverages;hechoosesbetweenlifeanddeath.Asocietythatchooses between capitalism and socialism doesnotchoosebetweentwosocialsystems;itchoosesbetweensocialcooperationandthedisintegrationof society. Socialism is not an alternative tocapitalism;itisanalternativetoanysystemunderwhichmencanliveashumanbeings.”

Obama’s tenure in the White House proves everywordofthisanalysis.“Thedisintegrationofsociety”isunprecedented,withthegovernmentunderminingthe basis of the market economy and limiting ourhumanrights,withthepropertyrightsbeingalreadyinthecrosshairsofoursocialistmasters.Tosolidifytheirgriponsocietyourcentralplannersmanufactureall kinds of imaginary crises from climate changeto white privilege and Christian bigotry. They aresucceedinginpittingAmericansagainsteachotheronthebasisofclass,gender,skinpigmentation,religion,sexualpreferencesandmanyotherfalse“identifiers”.

For any student of history, it shouldbeobviousthat today we have an anti-American, anti-Constitutionalist, and anti-capitalist Hillary Clintonfacing a businessman who has created value all

his life. It is amazing for me to hear from somewell-known economists, who claim to belong tothe Austrian school of economics, that Trump hasnever created any value and is just a speculator!Aspeculatordoesnotcreatevalue?Ihopethattheydonot teach this Leninist garbage in their economicsclasses. How about Trump Towers and other realestate developments? Even Marx would approvetheseinvestmentsashighlyproductive.

Itisalsoalarmingthatmanyofourfellowlibertariansare displaying almost animalistic hatred towardsTrump and are eagerly repeating whatever theyhearabouthimonNPRorPBS. Theanti-capitalistmentality honed by our educational system hasbecome so pervasive that many conservatives andlibertariansarealmostexplodingwiththeclasshatredandsocialenvytheyhavepickedupfromthesocialandprintmedia.

In the referendum over whether to “leave” or“remain”intheEuropeanUnion,Britishvotershavechosen to leave. Only Donald Trump had backedthe campaign to leave. The British defied not onlythe leaders of theBritish ruling duopoly,Cameron,andCorbynbutalsoBarackObama,whohadurgedBritain to“remain”in theEU. HillaryClintonalsorecommended thatBritain should remain in.Trumppredicted that leaving theEUwouldnotputBritainatthe“backofthequeue,”andsaid:“IthinkifIwerefromBritainIwouldprobablywanttogobacktoadifferentsystem.”

TheBrexitresultsalsoshowedthatthetrendofopinionpollswaswrongastheseshowed“Remain”inthelead.Asmanytimesbefore,publicopinionpollsprovedtobeapropagandadevice—nottellinguswhatpeoplethinkbutratherwhatweshouldthink.Accordingtothe Independent, “When Basildon [a working-classsuburbofLondon]yielded69percentforLeave,itwasevenlouder.Soloud,whocouldbarelyheartheTV,relayingthechantsfromthecrowdsof‘FuckoffBrussels.’TheUnitedKingdomIndependenceParty’sNigelFaragealmostechoedTrump:“Wewillgetourcountryback,wewillgetourindependencebackandwewillgetourbordersback.”


BankNotes -NelsonNash’sMonthlyNewsletter-July2016Trumpisfarfrombeinganangel.Hesayswhathethinks and the whole two-party duopoly is againsthim.HouseSpeakerRyan,calledTrump’schargethatthejudgeisbiasedtowardhimbecauseofhisMexicanorigin“thetextbookdefinitionofaracistcomment.”WherewasRyanwhenSupremeCourtJusticeSoniaSotomayor told us that: “I would hope that a wiseLatinawomanwith the richness of her experienceswould,moreoftenthannot,reachabetterconclusionthan awhitemalewhohasn’t lived that life”? I dodisagreewithbothTrumpandSotomayorbutIdonotseeanything“racist”intheircomments.

ItsoundslikePaulRyan’s“textbook”issimilartotheonesthatwewerebrainwashedwithinthegovernmentschoolsoftheUSSR.Trump’ssuggestedamoratoriumonMuslimimmigration(untilthegovernmentcanvetimmigrantswellenoughtosortouttheterrorists)wasimmediatelyblastedbybothpartiesas“racist”as ifIslamwerearaceratherthanareligion.NatsuTaylorSaito,aprofessoroflawatGeorgiaStateUniversitytold HuffPost that Trump’s proposal mirrored theChinese ExclusionAct of 1882. “I don’t think thisis significantlydifferent,”Saitosaid.“It is targetingpeople on the basis of religion rather than nationalorigin.ButweallknowthatthisparticulartargetingofMuslims ishighly racializedand tied tonationalorigins.SoIthinkit’sverysimilar.”

No“weall”donotknowtheseprogressivedogmasandhavedifficultiesinunderstandingcomradeSaito’sNewspeak jargon of this proposed measure being“highlyracialized.”

Anothervitalissueisourjudicialsystem.HillarywillappointObama or Sanders or someone evenworseto the SupremeCourt andmake it another “engineforchange”. Itwas justonevote thatpreserved theSecondAmendment in 1996. Scalia departed andThomasisplanningtoretire;guesshowshewillpackthe court. Roberts is not a friend of liberty—just asecondcomingofSouter.

For libertarians, it shouldbeaprettyeasychoice—Trumpisforthegoldstandard,forlowtaxes,foranon-interventionistforeignpolicy;heisalsoagainstwhathecalls“themanufacturedclimatechangehoax”and

governmentbroadcasting.HehaspromisedtorepealObamacare,keeptheSecondAmendmentintact,andappointconservativejudgestotheSupremeCourt—hislistofelevencandidatesisprettyimpressive.

Trump’santi-freetradestandissimilartoHillary’s,butunlikeher,heisnotahostageoftheunions.Trump’scampaignpackagecomesinasomewhatunattractivewrapping for many people, but the content is waymoreimportantthanform.Itisastarkchoicebetweenfreedomandsocialistslavery.

YuriN.Maltsev,seniorfellowoftheMisesInstitute,worked as an economist on Mikhail Gorbachev'seconomic reform team before defecting to theUnitedStates.HeistheeditorofRequiem for Marx.HeteacheseconomicsatCarthageCollege.

Comment by R. Nelson Nash — Yuri has been a personal friend for a number of years. He has been a guest in our home on a couple of occasions and I have been a guest in his home in Wisconsin. He has experienced the paralyzing effect of Communism/Socialism as well as anyone on earth. I urge you to heed his warning.

Brexit: Individualism > Nationalism > GlobalismbyJeffDeist

Decentralization and devolution of state power is always a good thing, regardless of the motivations behind such movements.

Hunter S. Thompson, looking back on 60scountercultureinSanFrancisco,lamentedtheendofthateraanditsimaginedflower-childinnocence:

Sonow,lessthanfiveyearslater,youcangouponasteephillinLasVegasandlookWest,andwiththerightkindofeyesyoucanalmostseethehigh-watermark—thatplacewherethewavefinallybrokeandrolledback.

Doestoday’sBrexitvote,winorlose,similarlymarkthespotwheretheonce-inevitablemarchofglobalismbegins to recede?Have ordinary people around theworld reached the pointwhere real questions about



self-determination have become too acute to ignoreanylonger?

Globalism, championed almost exclusively bypoliticalandeconomicelites,hasbeenthedominantforce in theWest for ahundredyears.WorldWar IandtheLeagueofNationsestablishedtheframeworkfor multinational military excursions, while thecreation of the Federal Reserve Bank set the stagefor the eventual emergence of the US dollar as aworldwidereservecurrency.ProgressivegovernmentprogramsinWesterncountriespromisedanewmodelfor universalism and peace in the aftermath of thedestruction of Europe. Human rights, democracy,and enlightened social viewswere now to serve ashallmarks of a post-monarchical Europe and risingUS.

But globalism was never liberalism, nor was itintendedtobebyitsarchitects.Asitscore,globalismhasalwaysmeantrulebyilliberalelitesundertheguiseofmassdemocracy.Ithasalwaysbeendistinctlyanti-democraticandanti-freedom,evenasitpurportedtorepresentliberationfromrepressivegovernmentsandpoverty.

Globalismisnot,asitssupportersclaim,simplytheinevitable outcome of modern technology appliedto communication, trade,and travel. It is not “theworld getting smaller.” It is, in fact, an ideologyandworldview thatmust be imposed by statist andcronyist means. It is the civic religion of peoplenamedClinton,Bush,Blair,Cameron,andLagarde.

Yes, libertarians advocate unfettered global trade.Evenmarginallyfreetradehasunquestionablycreatedenormouswealthandprosperityformillionsaroundtheworld.Trade,specialization,andanunderstandingofcomparativeadvantagehavedonemoretorelievepovertythanamillionUnitedNationsorInternationalMonetaryFunds.

ButtheEU,GATT,WTO,NAFTA,TPP,andthewholealphabet soup of trade schemes arewholly illiberalimpediments masquerading as real commercialfreedom. In fact, true free trade occurs only inthe absence of government agreements. The onlylegislationrequired isaunilateralone-sentencebill:

CountryXherebyeliminatesallimportduties,taxes,andtariffsonallYgoodsimportedfromcountryZ.

AndasGodfreyBloomexplains,theEuropeanUnionisprimarilyacustomszone,notafreetradezone.AbureaucracyinBrusselsishardlynecessarytoenactsimplepan-Europeantariffreductions.Itisnecessary,however, to begin building what globalism trulydemands:ade factoEuropeangovernment,completewith dense regulatory and tax rules, quasi-judicialbodies,anascentmilitary,andfurthersubordinationofnational,linguistic,andculturalidentities.

Which brings us to the Brexit vote, which offersBritonsfarmorethansimplyanopportunitytoremovethemselvesfromadoomedEUpoliticalandmonetaryproject.Itisanopportunitytoforestallthejuggernaut,atleastforaperiod,andreflectonthecurrentpath.Itisachancetofireashotheardaroundtheworld,tochallengethewisdomofthe“globalismisinevitable”narrative.ItistheUK’slastchancetoask—inatimewhenevenaskingisanactofrebellion—themostimportant political question of our day or any day:whodecides?

LudwigvonMisesunderstoodthatself-determinationisthefundamentalgoalofliberty,ofrealliberalism.It’struethatlibertariansoughtnottoconcernthemselveswith “national sovereignty” in the political sense,because governments are not sovereign kings andshouldneverbetreatedasworthyofdeterminingthecourseofour lives.But it isalso true that themoreattenuated the link between an individual and thebody purporting to govern him, the less control—self-determination—thatindividualhas.

ToquoteMises, fromhis 1927 classic (inGerman)Liberalismus:

Ifitwereinanywaypossibletograntthisrightofself-determinationtoeveryindividualperson,itwouldhavetobedone.

Ultimately, Brexit is not a referendum on trade,immigration, or the technical rules promulgated bythe(awful)EuropeanParliament.Itisareferendumonnationhood,whichisastepawayfromglobalismandcloser to individual self-determination. Libertarians



The Rise of Government and the Destruction of LibertyByPaulA.Cleveland

Ifyouaskpeopletodayiftheyvaluefreedomtheywillinvariably tell you that they do. Regrettably, basedupon their preferred government policy proposals,thatassertioncannotbetrue.Iamoftensurprisedathowlittlepeoplethinkaboutthenatureofgovernmentand the problems that have arisen in society as itspower and scope of operation have increased sodramaticallyoverthecourseofthepasthundredyearsorso.Todayourgovernmentdoessomuchmorethanitevershoulddo.Yet, thereseemstobeacommonbeliefthatitisthedutyofourgovernmenttoeducatepeople,providethemwiththehealthcaretheyneed,andevenhouseandfeedthem.Canthegovernmentactuallybetheproviderofthepeople?

President Grover Cleveland was once asked whyhe continually vetoed the progressive legislation ofhisera.Billafterbillthatcamebeforehisdeskwasrejected.EachonepromisedtoprovidesomethingfortheAmericanpublicfromthegovernment’streasury.Inresponsetothequestion,Clevelandaskedhisownquestion. Namely he pondered, “If the governmentis to provide for the people, who is to provide forthe government?” President Cleveland understoodafundamental truthof life thathasbeenlostontheAmerican public. In short, government does notproduce anything. Government cannot provideanything for anyone that it does not first take fromsomeoneelse.Ourgovernmentisadependententity.Itcannotexistapartfromthetaxrevenuesittakesin.Thus,itisfoolishtobelievethatgovernmentprogramscanprovide for our economic sustenance.After all,is itpossibleforthegovernmenttotakemoneyandpropertyawayfromthepeoplewhoproducedit,thenspendanddistributeitinvariouswaysalongpolitical

lines, and have economic prosperity as a result? Intruth most of what flows into Washington staysthereandissiphonedoffbybureaucracy.Therestisdistributed as political favors to a select few at theexpenseofthemany.

What then is thepurposeofgovernment?IsupposetheApostlePaul captured its purposebestwhenhewrote that the God given aim of government is topunish wrongdoers. We live in a fallen world. Asindividuals we are simply not the people that weoughttobe.Weallhavedesires.Somearegoodandsomearebad.Also,wealldesiretoachieveourendswithas littleeffortaspossible.Thus the temptationto avoid work altogether and simply take what wewantfromothersbyforceorfraud.Assomepeopledrift further and further into immoralbehavior theyaremoreandmorewillingtouseforceandviolenceagainstotherstoachievetheirownends.Theresultofsuchactionproduceschaosanddiscordinsociety.Putsimply,suchbehaviordisturbsthepeace.Therefore,governments are established in order to secure thepeace so that those wishing to live peaceably withtheirneighborsmaydoso.Thatis,governmentsareestablishedtouseforceforthepurposeoflegitimateself-defense.

Hereinliesaproblem.Whatif thosewishingtouseviolenceagainstothers togain theirownadvantageareable toseize the reinsofgovernmentanddirectitspowertopromotingtheirselfishends?Insteadofpursuingits truepurposeinsociety, thegovernmentmayactuallybeusedasaninstrumentofdestruction.Specifically, such immoral people may well beinspired to use governmental means to destroy thefreedom and liberty of their neighbors, to steal thefruitsoftheirlabor,andtocreatechaosinsocietyfortheirownmomentarypleasures.Totestwhetherornotthisistakingplaceinanationisasimpletask.Simplyask yourself whether or not the use of governmentforcebeingappliedwouldbejustifiediftakenbyanindividual?Iftheanswerisno,youcanrestassuredthattheactionisanillegitimateandimmoralactforgovernmentaswell.

TodayWashingtonD.C. has been inundated by animmoral ruling class that extracts large amounts of

should view the decentralization and devolution ofstatepoweraseverandalwaysagoodthing,regardlessofthemotivationsbehindsuchmovements.Reducingthe size and scope of any single (or multinational)state’sdominionisdecidedlyhealthyforliberty.



taxrevenuefromthepopulaceandusestheproceedsfortheirfavoredends.Theymakethemselveswealthyevenas theyextendhardshipand insecurity.Fear istheir basicmotivator for continued success in theirendeavors as they proclaim that all that is neededto provide security for the populace are just a fewmore rules and regulations and an increase in taxeson others to secure the so-called “common good.”Nothingcouldbefurtherfromthetruth.

VISIONByLeonardE.Read

Note - Frequent readers of BANKNOTES are aware of my relationship with Leonard E. Read and my admiration for his works during his lifetime. In the following issues I will be sharing his book, VISION, one chapter per month. It was written in 1978. What a privilege it was for me to know this great man! –R.NelsonNash

Chapter13QUOTHTHERAVEN,“EVERMORE”

Formenmaycomeandmenmay go, ButIgoonforever. -TENNYSON

Suppose you were one of those who seek publicacclaimasan"intellectual."Howwouldyouproceed?Wouldyounotcontrivebrief,catchyphrases,slogansand the like which appeal to the millions who dono thinking for themselves, jingles which inviterepetition?Theaimwouldbeto"sellthemasses"onanotionoraprogram.Inthepoliticoeconomicrealmwehearsuchclichesas"Taxtherichtohelpthepoor"or"Oneman'sgainisanother'sloss"or"Youcan'teatfreedom,"sadsayingsoverandoveragain-packagedtosell.

Letusnowshifttothepoeticrealm.Why?BecauseIwishtotryareversetwistoradifferentapplicationofEdgarAllanPoe'sfamousfableinverse,TheRaven.Poewrotean11-pageanalysisofhowhewentabouttheconstructionofthepoem.Hehadoneaimandoneonly:"universallyappreciable."Inaword,something

saleable!Toachievethishehadhisnarratorfeaturedby sadness. In response to each forlorn hope, theRavenwouldrepeatedlycroak,"Nevermore"-sadnesspackaged tosell!Here is thepenultimate -the17th-stanza:"Bethatwordoursignofparting,birdorfiend!"Ishrieked,upstarting,"GettheebackintothetempestandtheNight'sPlutonianShore!Leavenoblackplumeasatokenofthatliethysoulhathspoken!Leavemylonelinessunbroken!-quitthebustabovemydoor!Takethybeakfromoutmyheart,andtakethyformfromoffmydoor!"QuoththeRaven,"Nevermore."

Poe's narratorwaspraying for surcease.Unlikeourpresent-dayseekersaftertruth,hesoughtonlyrelieffrom the torturing memory of his lost Lenore. Inhis tormented musings, he fancies the bird is stillperched above his chamber door, looking down athimwitheyesthathave"alltheseemingofademon'sthat isdreaming."Andhebegsthebird:"Leavemylonelinessunbroken,quitthebustabovemydoor."TowhichtheRaven(i.e.,thenarrator'ssearingmemoryandgrief)croaksahopeless"Nevermore."

Poe touched here on a profound and universalcircumstance; for the seeker after truth oftenexperiences pain at its final discovery. Long-helddogmas are called in question. Old shibboleths areviolated. Among the wraiths of dying error, thereis always a "lost Lenore."The birth of an idea, nolessthanthatofahumaninfant,isapainfulprocess.Nevertheless, the painmust be endured if life is tocontinue,andiftruthistolive.Farbetter,then,thatheforwhomnewlightisdawningshouldmodify(and,ifnecessary,mangle)Poe'slinestoread:"Flauntawhiteplumeasatokenofthetruththathasbeenspoken;Iambowedbutneverbrokenwhentheoldthingsfallaway.Keepmeeverseeking,turningtothelightofnewerlearning-Thrustthybeakwithinmyheart,andmakeme


BankNotes -NelsonNash’sMonthlyNewsletter-July2016searchfortruthtoday...AndEVERMORE!"

Thenarrator'sdilemmawassadnessandhopelessness,nothing aglow for the future, life's mission in thepast tense. That's why Poe had the raven repeat,"Nevermore."

Mymissionandvisionispreciselytheopposite:oneofhappinessandhopefulness.ThisiswhymyRavencrowsahopeful,"Evermore."

OneparticipantatarecentSeminarremarked,"That'sthe best lecture I have every heard; it hurts but it'strue."Along-helddogma,anoldsocialisticshibboleth,down the drain!Of course it hurt.One cannot partwithanotionheldsupremewithoutmentalpain.Buta seeker of enlightenment, as is thisman, is happywithanewlydiscoveredtruth.Ofsuchpersonsitcanbesaid,"Hopespringseternalinthehumanbreast."Fortunately,myoutlookispreciselythesameasthatofTennyson'sbrook:Formenmaycomeandmenmaygo,ButIgoonforever.

Why?Mine is a commanding ambition:Toachievean ever-improving understanding and exposition ofhumanfreedom.Suchagoalisfarabovethemundaneaffairsofmenandbordersonthecelestial.TomakeevenaminorcontributionrequiresthatIgoonforever.Butthejourneyisahappyone.Likethebrook,Ipassscenesofbeautyandofchallenge:BythirtyhillsIhurrydownOrslipbetweentheridges;Bytwentythorps,alittletown,Andhalfahundredbridges.

Freedom, as I define the term-no man-concoctedrestraints against the release of creative humanenergy-hasbeenapproximatedonlyafewtimesinthehistoryofman.And,then,forrelativelyshortperiods.Otherwise,whathasbeenthehumansituation?Long-held dogmas, old shibboleths, authoritarianism-one"lostLenore"afteranother.

Finally,nottheslightestprogresscanbemadetowardsuchagoalunlessthequestisfeaturedbyhappiness.Have funor forget it!Keep inmindGoethe's truth:

"Miracle is the darling child of faith." Have faith-hopefulness-orforgetit!

TheabovewayoflifeiswhyIsaytomyRaven:"Thrustthybeakwithinmyheart,andmakemesearchfortruthtoday-andEvermore!"

MygratitudetoRalphBradford.Whilethissoliloquywasmy idea,numerous thoughtsandphrasingsandthemodifiedRavenarehis.Iamnotapoetandknowit!

Nelson’s Live Seminars & Eventsfor July & August 2016

http://infinitebanking.org/seminars/

Oakland, CA - Nelson Nash Live SeminarJuly 8-9, 2016 ContactJimKindredforattendanceinformation:[email protected]

Nelson Nash Live in Kelowna, BC, Canada for an Agent-Only SeminarJuly 14-15, 2016,Pleaseusethislinktoregister:www.mcguirefinancial.ca/agent-training/TheeventisopentolifelicensedAgentsonly.ContactJaysonLoweforadditionalinformation:[email protected]

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Uniondale, Long Island - Nelson Nash Live SeminarAugust 20, 2016 ContactAlanBleckerforattendanceinformation:Mobile:914-413-1793;Office:[email protected]



Welcome the newest IBC Practitionershttps://www.infinitebanking.org/finder/

ThefollowingfinancialprofessionalsjoinedorrenewedtheirmembershiptoourAuthorized Infinite Banking Concepts Practitioners teamthismonth:

You can view the entire practitioner listing on our website using the Practitioner Finder.IBC Practitioner’shavecompletedtheIBC Practitioner’s Program and have passed the program exam to ensurethat they possess a solid foundation in the theory andimplementation of IBC, as well as an understandingofAustrian economics and its unique insights into ourmonetaryandbankinginstitutions.TheIBC Practitionerhasabroadbaseofknowledgetoensureaminimallevelofcompetencyinalloftheareasafinancialprofessionalneeds,inordertoadequatelydiscussIBCwithhisorherclients.

Nelson’s Favorite Quotes

Letusraiseastandardtowhichthewiseandhonestcanrepair;therestisinthehandsofGod.—GeorgeWashington

• EricRoy-Gatineau,Quebec• ElizabethMiller-London,Ohio• JoeyMure-Birmingham,Alabama• MarkSchreiber-StLouis,Missouri• MikeSidhu-Victoria,BritishColumbia• JohnMoriarty-SunsetHills,Missouri• PedroPalicio-CoralGables,Florida• TeresaKuhn-Austin,Texas• ThomasYoung-Beaver,Pennsylvania

Weareexcitedtosharethenewwebsite Lara-Murphy.com.

Withthesite,CarlosLaraandDr.RobertMurphyhaveexpandedtheiruniqueAustrianeconomicmessagefoundintheirmonthlynewsletter,theLMR.

Personally,ImostenjoytheironlineweeklyPodcastsandwanttosharethelatesttwowithyou.ThesepodcastsareagreatintroductiontoIBCanddemonstratethequalityoftheproductions.

Youcanlistenhere:Episode 17 How-To Guide for Starting

IBC, Part 1Episode 18 How-To Guide for Starting

IBC, Part 2Letusknowwhatyouthink!

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Documents

ank otes nelson31@charter - Amazon S3July...a bill of rights added, and viewed it as a work in progress, writing to James Madison that it should be submitted to the people as a draft