Oct 022013
 

Shutdown, blah blah.

The whole web is full of dumbass articles with screenshots of federal agency websites like this:

Due to the US government shutdown, this website has died.

I’m not an expert, but I know a thing or two about websites. For example, I know these bastards don’t rent server space by the day.

I mean, come on! One day without a budget and they can’t leave their fucking websites up? Is this some kind of joke, or are federal government agencies so shite they can’t keep a website running for ONE FUCKING DAY without a budget being passed?

And these are the people who run the free world. Jesus wept.

Nov 112012
 

Ah, those weeks following an American presidential election. Tempers calm, fanaticism wanes, and wishful thinking becomes wistful thinking. The news is all about deconstruction of the results, and peace reigns until next year (when everything ramps up again before the mid-terms).

So what is the deconstruction?

Both sides are postulating the existence of a permanent Democratic majority in the American populace, a turning point reached wherein there are no longer enough people in the country who benefit from Republican policies to be able to elect them. Talk on blogs is of the 47% plus the 1% in permanent coalition (though that still only makes 48%).

Looking at the results on the map, though, I’m not sure I get that. Obama won in the states the Democrats usually win in, and Romney won in the states Republicans usually win in.

Why, then, is there all this talk of Republicans never taking the presidency again? Why is Janet Daley writing in the Telegraph about the Europeanisation of the American electorate when all that happened was that a Democratic incumbent won again? They sometimes do, you know. Clinton did. The pendulum swings back.

Maybe it’s something to do with why people voted the way they did. Election analysis, pre- and post-, loves to delve into “what the election is all about.” I remember in 2004, people were saying the election was being fought on values: patriotism, Jesus, and the American Way. Bush won because Americans were still proud of themselves and thought America was the greatest place on Earth. Kerry lost because he was “too European” and considered a dweeb who had never done an honest day’s work.

That certainly wasn’t what the election in 2008 was about. You don’t vote for hope and change unless you feel hopeless and stuck, so there was something wrong with the brand already.

What happened to the brand? Did people stop believing in the American dream? Is the United States still the land of the free, where an honest day’s work gets you an honest day’s pay?

I’m not sure what people thought in 2008, but I’m pretty sure I know what they think now: the American Way is a clapped-out clunker. If you’re an Average Joe, working in an average job, paying down a modest mortgage, bringing up a modest family, and modest town somewhere, you don’t expect your country to fail you. After all, you’re doing your bit. When, for no reason you can divine, your company goes bust, you lose your job, your house is repossessed, and you have to go on food stamps, you kinda lose that patriotism, don’t you? You definitely lose your pride.

And here comes this Romney guy, talking about how he stands for hard-working Americans and the virtue of honest toil, and you probably hate him just a little bit for it. If his American Way is so great, how come your life sucks so much?

Fundamentally, it doesn’t matter who’s to blame for the economic situation in the US and around the world. What mattered in this election was the number of Americans who knew it wasn’t their fault, and who couldn’t understand this dude effectively telling them to pull themselves up by the bootstraps. If that worked, they might have thought to themselves, they’d have done it already. But just as they clearly had no power to prevent the collapse, neither did they feel like they had the power to recover from it through their own efforts.

And I think that’s basically why Obama won. He acknowledged that these average people were both blameless and powerless, and suggested that as it was the government that got them into this mess, thus it was the government’s duty to get them out of it again.

So all of the chatter in the aftermath that this election was fought on how Americans feel about the role of their government is right; I just think the commentators have it backwards. American voters haven’t embraced big government as the way to a fairer society (although maybe some of them have). They’ve looked big government in the eye and said “You sons of bitches broke it. Now you fucking fix it. We’ll just sit over here and wait until you’re done.”

There’s a degree to which I sympathise with this point of view, but I think a lot of people are going to be disappointed. There’s a reason people say “It doesn’t matter who you vote for, the government always wins.” The solution to the problem isn’t more of the problem, and if you feel like the much-abused little guy getting stomped all over by the powers that be, you’re crazy if you think a nice guy like Obama is going to be able to put a stop to the stomping.

Obama probably is a nice guy, and probably wants to help, but fundamentally he is one guy amongst hundreds of thousands of government apparatchiks, special interest groups, think tanks, and corporate donors. And he is certainly one guy who said he was going to put a stop to the stomping in 2008, and totally failed. But I agree that he probably had more credibility in claiming this than Romney.

There is one outcome from this election that nobody seems to have made much of yet, and that is the announcement of Ron Paul Kenobi’s retirement. Americans, he says, would rather have the Empire than freedom, and least he can retire and not, like Cato Uticensis, feel compelled to put a sword through himself.

This article is not so much Lucas or Plutarch, though, as it is Seuss:

The Lorax said nothing. Just gave me a glance
just gave me a very sad, sad backward glance
as he lifted himself by the seat of his pants.
And I’ll never forget the grim look on his face
when he hoisted himself and took leave of this place
through a hole in the smog, without leaving a trace.
And all that the Lorax left here in this mess
was a small pile of rocks with one word…UNLESS.

Nov 072012
 

Last time we spoke, I had some predictions for ye olde election, and they all came true. Just call me Cassandra. Allow me to refresh your memory.

(1) Obama will win.*

He did.

(2) It won’t matter that Obama has won…Republicans don’t have to vote for Romney to piss in Obama’s cornflakes, they only have to vote for Republican congressional candidates, which they will do.

They did. The Republicans have kept the House. I HOPE Obama is looking FORWARD to the total absence of CHANGE in the House’s attitude toward his policies. It’s going to be a hard four years for the guy, and I hope all of those people who said he would use this second term to really fix his slice on the golf course are right, otherwise we might see the first presidential suicide in history.

If Obama thinks he’s had a hard time up to now, it’s nothing compared to what he’ll suffer when his apologists melt away because they don’t have to care about getting him re-elected any more. They’ll be looking for their 2016 candidate at 8am on 7th November.

Turns out I was late to the party on this one. This New York Times article from 6 September states:

CHARLOTTE, N.C. — Whether President Obama wins or loses in November, one thing is certain for Democrats on the morning after Election Day: the 2016 auditions begin.

A buncha people I’ve never heard of are in the running, plus Joe Biden (not fucking likely), Hillary Clinton (okay, maybe) and Andrew Cuomo (he’ll be lucky if he’s even still governor of New York by that point).

Then, the prediction I was most certain would happen:

(3) Paul Ryan’s career in the big-time is over.

He didn’t even carry his home state.

Ryan is toast.

*Looking on the bright side: at least I don’t have to retire my “oops! Obama” tag.

Sep 302012
 

(1) Obama will win.

Not even Romney’s own party likes Romney all that much, so any vote for Romney is essentially a vote against Obama. And while there are a lot of people out there who would enjoy sticking it to Obama, all of the presidential elections I’ve been alive for suggest that “voting against” is vastly inferior to “voting for” as a source of motivation.

Just ask Mondale, George HW Bush, Dole, and Kerry. Especially Kerry.

(2) It won’t matter that Obama has won.

If Obama thinks he’s had a hard time up to now, it’s nothing compared to what he’ll suffer when his apologists melt away because they don’t have to care about getting him re-elected any more. They’ll be looking for their 2016 candidate at 8am on 7th November. Republicans don’t have to vote for Romney to piss in Obama’s cornflakes, they only have to vote for Republican congressional candidates, which they will do.

I think the Republican party knows this, and therefore haven’t really exerted themselves to put up a compelling candidate. As Andy Parsons put it on “Mock the Week” the other night, they’ve decided to run a guy who lost the nomination to the guy who lost the nomination to George W Bush. Many critics from within the Republican camp attribute this to an “it’s his turn” mentality, but I think it’s probably just that the party bigwigs don’t give a crap this time around.

Any Republican who won this year would probably be a one-term president, because the economy is in the shitter and you can bet that the media—who are ignoring this point at the moment to help out Obama—wouldn’t be ignoring it in 2016 if the incumbent were a Republican.

Much better to give Romney his way, shrug sadly when he loses, and proceed to torment the ever-loving shit out of a now-friendless Obama for four years, thus paving the way for a charismatic Republican to win in 2016 and 2020.

(3) Paul Ryan’s career in the big-time is over.

There is nothing more damaging in American politics than being the VP candidate to a guy who loses. I mean, apart from their VP run, do these names mean anything to you?

  • Geraldine Ferraro
  • Lloyd Bentsen
  • Jack Kemp
  • John Edwards

Okay, that last one might mean something to you because he’s now known as the guy who was indicted for using campaign funds to cover up the affair and love child he had while his wife was dying of cancer. But if that hadn’t happened, John Edwards would be a total nobody.

I won’t be voting in this election because I don’t believe in this faux-democratic bullshit and I don’t support either party. But I’m going to give the Republicans the benefit of the doubt and assume they’ve used this presidential election, which it wouldn’t benefit them to win, to purge the lunatics, also-rans, and has-beens from the nomination slate, and are gearing up to stick it to their weakened, herdless prey.

I mean, it’s what they did to Clinton, and that turned out pretty well, no?

Mar 272012
 

I’ve been reading the transcripts of and commentary about the US Supreme Court arguments taking place this week about the constitutionality of the “individual mandate” and associated penalty contained within the provisions of the Patient Protection and Affordable Care Act (2010).

Before I get into any analysis, a seeming triviality: many of the news reports about this case are noting the fact that its opponents refer to the act as “Obamacare,” as if this were some kind of novel piece of slang. It’s not. What’s new is that, ahead of these oral arguments, the Act’s supporters have started embracing the term instead of discouraging its use, as if Barack Obama himself has delivered this manna to the unhealthy. Frankly, I don’t think Obama has even read the full text of this legislation, so I refuse to give him sole credit (or blame) for it, and will refer to it by its acronym PPACA, which is the norm when referring to legislation of the American Congress. (What, did you think PATRIOT Act was capitalised because it’s a big deal? No: it’s because it’s the Uniting (and) Strengthening America (by) Providing Appropriate Tools Required (to) Intercept (and) Obstruct Terrorism Act of 2001. American politicians are nothing if not massively cheesy.)

Now let’s address why I’m writing this blog post. This case is an extraordinarily big deal, and you will have a hard time understanding why if all you read is the news media accounts of the arguments. The American media does not want to go into any great analysis of the issue, for fear that you might draw your own conclusions, and the British media does not understand the significance. In the British media in particular, you will find reporters utterly baffled by what appears, to them, to be a sneaky, underhand challenge of the president himself under the pretext of a legal technicality.

Whether or not a law, or a part of a law, is constitutional is simply not a legal technicality. The Constitution is the basis for all federal government in the United States. The federal government simply may not make laws that contravene, or surpass, what the Constitution allows it to do. The law, or the provision within the law, cannot be imposed upon the American people if it is not constitutional. And one of the basic rights Americans have is to challenge the federal government about the constitutionality of its laws. That British journalists don’t seem (or want) to grasp this, simply because they personally think the PPACA is a good thing, makes them shitty journalists.

So. What is the issue at stake?

The challenge to the PPACA is about the provisions in section 5000A, which require Americans to be covered by health insurance (whether purchased individually or through their employer) or incur a penalty. These parts of the law are collectively referred to as the “individual mandate” or the “minimum coverage provision.”

The challengers, in this case, are a number of American states and some associated individuals. Their basic contention is that the US Constitution does not permit the federal government to compel people to purchase health insurance when they are not purchasing health care services.

In this case, you have two participants: the challengers, and the US federal government (as represented by the Solicitor General). This case has gone through the federal courts already, and the Supreme Court agreed at the back end of 2011 to hear it. This is significant: the Supreme Court can choose not to hear cases, so the fact it has chosen to hear this one means the Court believes that there is enough doubt about the matter, or enough importance about the question at hand, to make it an issue worth settling. The Court’s decision is binding and, in this case, may also be precedent-setting. (This is kind of what puzzles me about the position of many British journalists; if the high court of the US thinks it’s important enough to discuss, who are you to call it a trivial technicality?)

But enough about British journalists. Part of the reason reportage about this case is so crappy is that there are lots of different strands of argument involved, not all of which make a lot of sense if you consider them in isolation.

For example, yesterday’s arguments centred around whether or not the Court could even hear the case. Here’s the background: as the case has made its way through the lower levels of courts, the government’s position has been that the penalty for not purchasing health insurance is, effectively, a tax, and taxes do not come under the jurisdiction of any court until the complainant has paid the tax, requested administrative redress, and been refused. Then, and only then, can the complainant bring suit. (Challenges to tax are covered under a law called the Anti-Injunction Act.) The government’s argument has been that, since the mandate and penalty/tax do not come into force until 2014, the law cannot be challenged on those grounds in 2012, because nobody has yet paid the tax and therefore nobody can at this point bring suit.

Interestingly, once the Court agreed to hear the case, the government switched positions, and yesterday argued before the justices that the penalty is not a tax subject to the Anti-Injunction Act. Because the challengers were making the same argument, the Court had to appoint independent counsel (the amicus curiae) to argue that the penalty is a tax. Ultimately, yesterday, the Court appeared to accept that the penalty is not a tax subject to the Anti-Injunction Act. Nobody was surprised by this; why would the Court schedule three days of argument about the matter if it envisioned recusing itself after the first day?

So. We proceed to today’s arguments, which were about the constitutionality of the mandate itself. I have read the transcript, but I am not a lawyer, so take what I am about to describe with the understanding that I am both ignorant and naive to a certain extent. However, you can read the stuff yourself on the SCOTUS website; the arguments were very accessible to the layman.

The government argued as follows. In the Constitution, the federal government is allowed the power to regulate commerce, and issues affecting commerce, between the states (the “Commerce Clause”). There are two commercial markets at issue: one is for health care services, and one is for health insurance. All people in the US are participants in the health care market, because all people in the US will require health care at some point. Health insurance is the method by which people finance their health care in the US, and therefore all people are technically participants in the health insurance market also. Ergo, Congress has the right to regulate both, as both constitute interstate commerce, even to the point of requiring people to purchase health insurance at a given point in time, because their failure to do so is an issue that affects commerce within that market.

(There is also a whole bunch of stuff about how the penalty for not buying is a tax, but I didn’t follow that part too well, and since the government argued yesterday that it is only kind of a tax, I’m not sure how germane the point is anyway.)

What it is important to understand about the government’s position is that, in the US, even if you do not have health insurance, you cannot be refused health care. So what happens is that people without the means to pay for their health care nevertheless receive it, which drives up the cost of care, which in turn drives up premiums for those people who are insured. So the government is arguing that because some people’s failure to insure themselves affects the price of everyone’s health care and insurance, Congress has the right to interfere in the purchasing (or not) of health insurance under the justification of the Commerce Clause.

By compelling people to purchase insurance (and penalising/taxing people if they don’t), the government’s aim is to reduce the free rider problem and thus lower the cost of care and insurance premiums.

If you read the transcript, Solicitor General Verrilli does a lot of waffling about the “40 million Americans who don’t have access to care,” but the upshot of what he’s saying is this: actually, these people can get care, they just don’t pay for it. So in order to cover the cost of people who can’t pay for the care they definitely do get, everyone has to be insured. That way, the insurance companies can use the premiums paid by the healthy to subsidise the cost of the care for unhealthy people who can’t pay for it themselves. Thus, because everybody is affected by this way of ensuring poor people can still get health care, Congress can do what it chooses, including compelling purchase, to deal with the problem.

So far, so clear. The system envisioned in the PPACA is one of the healthy subsidising the unhealthy.

The challengers argument was somewhat more complicated.

First, they disputed the “everybody is a participant” claim. Many of the Americans who do not have health insurance are young, healthy people who choose to spend their money on something else, believing themselves to be at low risk of requiring health care. Thus, these people are not, at a given point in time, participants in either the health care or health insurance market. The Commerce Clause, they say, does not give the government the right to compel people to participate in these markets when they otherwise would not choose to do so.

Second, they disputed that the health care and health insurance markets are so intertwined as make eventual participation in the one the justification for forced participation in the other. There are, they said, other means of subsidising the unhealthy who cannot pay for their care than compelling the purchase of health insurance. Social Security was brought up: a general tax, linked to income, levied on everyone, which the federal government then disburses to those requiring the payments, would be constitutional in a way the mandate is not, because the Constitution does give the federal government the right to levy taxes. (This is, in fact, how Medicare and Medicaid work at the moment.) The challengers also pointed out that the problem the provision is attempting to solve is one created by the government in the first place: namely, the government forces emergency rooms to treat those who cannot pay, and it forces insurance companies to insure high-risk individuals. If it did not do those things, there would not be a free rider problem, and so there are other solutions than the mandate imposed by the PPACA.

During the arguments, the justices focused particularly keenly on two problems with these issues: (1) are the health markets unique, and if so, what specifically is the limiting principle that will stop the federal government from engaging in compulsory purchase in other markets? and (2) if the challengers concede that the federal government can force people to purchase health insurance at the point of purchasing health care itself (which, apparently, they do concede), what is the problem, precisely, with moving that point of compulsion forward in time, when it will have the most beneficial effects?

A lot of today’s commentary was along the lines of “Obamacare in danger of being struck down,” because the justices seemed particularly pointed and hostile in their questioning, but I think this is premature. The mandate may be ideologically horrific to the average American mindset, but that does not mean it is unconstitutional. And the role of the justices is to pick holes in the arguments and expose the weaknesses; that doesn’t mean those weaknesses are fatal. The most aggressive questioning came from Justice Scalia, and I admit the Solicitor General didn’t seem particularly articulate in his answers—at one point, Justice Sotomayor summed up his argument for him much better than he had done, and he didn’t seem to notice—but that doesn’t mean his points are invalid.

There were a lot of other issues and sidelines in the arguments, but there was one point that came out pretty strongly to me, and it was made by Michael Carvin for the challengers. What he argued, in effect, was that the government’s own argument is self-contradicting. At the moment, people with insurance effectively subsidise those without. Under the PPACA, people with insurance will effectively subsidise those without. There is no difference in where the cost is borne; it is always borne by the people with insurance. What the PPACA proposes to do is to increase the pool of insured people to pay the subsidy, thereby spreading the cost over a larger base. The PPACA itself, and the government, admit this is the entire purpose of the mandate: to make healthy people who do not currently purchase health care purchase insurance in order to cover the cost of those people who cannot pay for the health care they purchase.

Therefore, the government is implicitly admitting that there are some people who are outside the market, who need to be drawn into the market in order to spread the cost of subsidy around—and since that is the whole purpose of the mandate, the existence of the mandate demonstrates that not everybody is a participant in these markets, and therefore are not engaging in commerce that can be regulated in this way by Congress.

It’s a neat little argument, and I wish he’d been more explicit about how circular it is. He does call it “bootstrapping,” though, and it’s true. If everyone was a participant in these markets, which is the government’s justification for this falling within the power of the Commerce Clause, there would be no need for the mandate; but because the point of the mandate is to make everyone participate, it is itself an admission that not everyone does, and therefore it can’t be justified by the claim that everyone is already a participant, because if they were, the government wouldn’t need to mandate that they participate.

The only other interesting thing to point out is that, although everyone involved seems keen not to get into the merits of the law as a whole, with the whole, y’know, making sure people don’t bankrupt themselves in order to stay healthy, the people who are most prone to talking about the merits of the law appear to be the justices themselves. This is why I think the commentators are premature: while it’s nice to think that Supreme Court judges are impartial, they’re not. They’re perfectly capable of allowing their approval of the aim of the PPACA to bias their views on its constitutionality—and by the same token, of allowing their repugnance at the methods of the PPACA to affect their judgment of its intention.

And that’s true of a lot of people right now, I think. Health care in the United States is totally fucked up, and I don’t think it’s really possible to dispute that. However, the PPACA is not the only possible solution to the problems, and my personal view is that it’s about the worst one, in fact. But people on the right are in danger of defending a really shitty situation when they attack this law, and people on the left are in danger of defending a really shitty law when they attack the current situation.

This is why, going back to the beginning, the label “Obamacare” is so pernicious. Would people really be as blindly and tribally partisan about this law if it didn’t involve a cult of personality and were, instead, the boring old PPACA?

Read the transcript for Monday’s arguments.

Read the transcript for Tuesday’s arguments.

Dec 282011
 

Somewhat strangely this year, I find myself in possession of a vote of higher value than normal. Allow me to elaborate:

  • In 2008, the presidential popular vote in North Carolina was extremely close. Obama won the state’s electoral college votes by a margin of 0.32%, the equivalent of about 19,000 votes.
  • The current US Senate has 51 Democrats and 47 Republicans. Of these, North Carolina supplies 1 Democrat and 1 Republican.
  • The current US House of Representatives has 193 Democrats and 242 Republicans. Of these, North Carolina supplies 7 Democrats and 6 Republicans.

All of which means that, for the first time I can ever actually remember, North Carolina is an important swing state, where candidates are suddenly bothering to campaign—the Democrats have even chosen North Carolina’s biggest city to host their national convention this year. North Carolina might therefore just become a deciding factor in this year’s federal elections, and my vote, historically puny and pointless, this year carries some weight.

(Although not in the primaries, thanks to the NC General Assembly’s long-standing and well-attested tradition of constant gerrymandering.)

I thought I might bring this up for the purpose of drawing attention to a basic and amusing irony: I, suddenly possessed of an important vote, nevertheless don’t care; while many foreigners, possessed of no votes in the American elections at all, would give their eye-teeth to have it. What the United States political class does, so the argument goes, affects the world, so the world should have a vote. And yet it doesn’t, but I do.

And this is likely to be a dirty-fought and close-won election, in both legislative and executive branches.

I have therefore decided to offer my federal vote to one non-American person who gives a shit that is statistically significant from zero. I will vote the way you want in the presidential and congressional elections, whether it be for specific candidates or a straight-ticket party or not at all, or even spoil my ballot with amusing sayings. I stress that this is a gift, not a trade; I am conversant with North Carolina general statute 163-275 making it a class I felony to accept any thing of value whatsoever in return for my vote.

Therefore, any person who would like to take up this offer of mine must be scrupulously conspicuous in offering me no value for it at all; in fact, it might even be better if such persons were to cause me a loss of value somehow, for example by kicking me in the shins or making me buy them pints.

Takers in the comments, please.

Aug 172011
 

What do you mean, he’s not Richard Petty?

I would totally vote for Richard Petty. I think this nominative confusion, perfectly understandable in all American Southerners, is going to be the cause of a lot of awkwardness between now and November 2012…

Jan 202011
 

It appears that the House of Representatives has voted to repeal last year’s bloated healthcare act and has put committees together to draft new legislation to replace it—without a timetable.

As you will know, the ‘without a timetable’ aspect is something I lean toward favouring, as I criticised the act heavily, in large part for this reason:

Obama and his Congress sure did fuck it up, didn’t they? Instead of doing thorough research, either before the election or after it, and determining the best possible way to ensure universal, affordable healthcare, they cobbled together a travesty of a bill, full of unrelated pork to get various hold-out politicians onside, that when all is said and done, could serve as an exemplar of what every rent-seeker (in this case, the insurance industry) hardly dares even to dream.

But this vote is not a repeal in itself, of course. That whole ‘checks and balances’ thing means that the repeal bill will have to go before the Senate and win passage there, and then go before… the president. And, typically:

Democratic leaders in the Senate have vowed to shelve the repeal bill, and President Obama has said he would veto repeal if it ever reached his desk.

‘Shelving’ essentially means that the Senate Majority Leader, one egregious Harry Reid, can simply refuse to put the House bill onto the Senate’s legislative timetable—more or less indefinitely, if he so chooses. And even if, by some miracle of organised crime, intimidation, and sweet sweet reason, Republicans get the bill put on the Senate timetable and manage to pass it there, Obama can employ a number of veto tactics depending on when over the course of the legislative session the bill is presented to him. (Although he is required to submit his reasons for vetoing in writing; I wonder what boilerplate he’d spew on that occasion?)

The Congress can override the veto, but only with a two-thirds majority vote in both houses. So that’s pretty unlikely unless the Tea Party start getting uppity again.

I’m pleased the Republicans in the House have taken this first step, and they have a backstop in the fact that the healthcare act is being challenged in a number of cases and has already been ruled unconstitutional by a federal judge. (That ruling is under appeal, naturally.)

But they won’t get anywhere in the absence of some serious pressure from the American people, and given how the sheeple are, and how blind the Democrats are to protest and demonstration when it’s against their policies, I think the actual repeal of this hideous act will not occur. It’s more likely to be struck down by the high court, and even that’s pretty pie-in-the-sky.

Still, I wonder if the Democrats will now begin to hyperaccuse themselves of being obstructive, partisan, and resistant to the expressed will of the demos. It’s hard to imagine anything that demonstrates those qualities more than:

Democratic leaders in the Senate have vowed to shelve the repeal bill, and President Obama has said he would veto repeal if it ever reached his desk.

UPDATE: Hmm, seems I forgot about those little things called states…

Oct 142010
 

Guest post by Evander Diarmand

The federal government of the United States is, through a practice of perpetual borrowing, on the verge of financial collapse. This is widely decried in media and among citizens to varying degrees but little is done to waylay the rampant expenditure of borrowed funds. These loans, derived from foreign states and from the banks of the Federal Reserve Board, are currently the primary source of revenue for the federal state. The United States Constitution establishes no clear limit on the purposes for which the federal state may incur such debt nor does it limit the extent thereof. Consequently, the congress has taken advantage of the omission to further its political aims both variously and collectively. This self-perpetuating debt—both a threat to the national security and to the integrity of the federated union—has been a common feature in American politics for decades; to the extent that citizens widely accept it as typical. Despite its ubiquity and the number of people employed by debt-funded government bureaus and agencies, this practice is onerous. It is the primary threat to the republic today and must be stopped even if drastic action is required.

Financial management is widely regarded by contemporary society as drudgery—it is a necessary task but bland and thankless. Most people avoid the subject and procrastinate when they face financial difficulties. The general atmosphere of distaste for accounting is amplified enormously in the public spheres of society: several American states ignored the problem and are on the verge of bankruptcy. By many accounts, attaining solvency for these states cannot be postponed. In the federal government, even this eleventh-hour urgency is nonexistent because the federal government derives its funds in a manner all together obscure; a manner which is certainly extra-legal for any single state to attempt. The federal government did not acquire this ability accidentally. The entire history of central government in America, when examined broadly, is a series of legislation and court decisions which have gradually allowed more varied sources of revenue for the central authority and fewer restrictions thereon. The Articles of Confederation famously established the most restrictive rules for revenue generation and it is widely agreed the founders drafted the US Constitution primarily to remedy this perceived flaw. Under the Constitution, the federal apparatus has grown rapidly as court precedent has become increasingly liberal in judgments addressing federal revenue. The twentieth century has seen the greatest expansion of federal sources of revenue while the infrequent judicial impediments have been superseded either by legislation or constitutional amendment. The federal state, its appetite for money apparently insatiable, has perfected the skill of marketing even the most outrageous proposals for generating revenue—some egregiously unconstitutional—to the American populace.

What is the aim of the congress that they must constantly seek new sources of revenue? The answer is simple: Power. And they never have enough. It is likely not a conscious decision to dominate American society or undermine the republic but rather a collective understanding among federal officials that having power is preferable to sharing it. Power, for a congressman, is in controlling the purse. The more revenue they collect, the more control and popularity they can maintain throughout the various states. For instance, taxation of the states or the people never decreases. This means the federal government increasingly controls the collective income and expenditure of the American people simply because so much of our currency goes through their hands. What they collect is held until the congress finds a political motivation to redistribute it. Obviously, those who benefit from this redistribution will lend aid politicians who willing to enact it. When enough congressmen find it politically advantageous to subsidize an industry, agency, or a state, they make pacts with congressmen (often of the “opposition”) who wish to spend it to further their own careers.* Thus, the money is returned to the economy and artificially adheres to certain regions or economic sectors. This is the nature of the modern tyranny. It is a political culture of patronage, inherently plutocratic: because federal revenue is seemingly endless, begging for a share of that revenue has become a lucrative profession for the silver-tongued** and political power has gravitated to the center rather than being diffused throughout the union. Unsatisfied with controlling the money of the American states and their citizens, the federal government has in recent decades turned to borrowing as their principal monetary leverage.

This represents a terrible danger because, today, congress distributes far more than it collects to a degree unimaginable to most Americans. The imbalance is so severe that borrowing has replaced taxation as the primary source of revenue. Our current political system as it is practiced today can only continue if the government borrows endlessly. This has created a paradox: taxation’s only purpose in this system is the payment of interest on federal debt. To elaborate, the federal government has become so gluttonous for revenue that it borrows against the debt itself and struggles to pay off the interest at all. Raising taxes will only delude congressmen into believing they can maintain charade while lowering them will only deepen the debt. Their hunger for revenue has drained the Treasury, Social Security, and anywhere else money sat unused or in trust. They have borrowed from nations around the world and from the Federal Reserve so much for so long that the books would be incomprehensible to even the most talented accountant. It is dangerous because, if for no other reason, it deludes Americans into believing loans and income are the same thing.

The real danger, however, is the source of the borrowed money. Because the federal government is borrowing against debt (and therefore the American people’s money itself) it has created the possibility of catastrophic “foreclosure.” China (among many others states) and the banks of the Federal Reserve essentially own the federal government. And its net worth does not even come close to what it owes. These are some of the most powerful entities on earth and they have the potential to subjugate our federal government. Further, the economy of our nation, far from recovering after the 2007 decline, is in danger of descending into deepest stagflation. The congress’s heedless borrowing compelled the Federal Reserve to perform the greatest feat of illusion in human history: they have separated currency from any kind of value whatsoever and in so doing have been an example for power-hungry governments worldwide. Their monetary policy defies explanation and justification. When the congress needs money, the Federal Reserve quite literally creates it out of nothing and lends it to our government. These loans are borrowed against debt and must be repaid with interest despite being imaginary money. Income tax exists for no other reason than to prevent the federal government from being sucked into this monetary singularity. All the while, the Federal Reserve buys up more and more of our government with money that never existed.

This is not a clever piece of rhetoric meant to generate support for a party, and ideology, or a philosophy—the situation is truly dire. The US Constitution is consistently ignored and power no long derives from the states or the people. Powers now derives solely from money in the most direct literal sense. Our ideals and the republic created to maintain them are already gone. Elimination of the federal government’s unlimited power to collect and spend revenue is not a risk or gamble; it is a necessity if this union is to survive at all. Financial collapse is imminent—perhaps even with our lifetimes—if we continue to tinker with our tax code and limit ourselves to small spending cuts. Politicians and lobbyists caused the problem and are therefore incapable of solving it.

What is necessary for our prosperity and our security is inevitably painful: the largely idle but extremely expensive bureaucracy must be dismantled; the military empire must end; the power of congress to borrow must be severely limited; and the Constitution must be reinstated and amended to outlaw borrowing and new federal spending during a deficit. Most importantly, we must wrest control of our currency from the hands of the Federal Reserve. The downward spiral must be stopped—partisan elections, regulations, and lobbying will accomplish nothing unless we resign ourselves to the truth. Unfortunately, there is no happy ending. It is too late to solve this problem without damage to our economy and political infrastructure; this is the price of delay. We must accept that we will not always be rich, that we will not always be powerful, and that politics is poison. All we can do now is save our country.

*Believe me, none of them actually wants to prevent the spending all together.

** i.e. those who aren’t politicians.

Jul 242010
 

In all the la-de-da with John Demetriou about my previous post, I totally forgot that I’d read another piece about American rage etc. only recently, one which I found pretty compelling.

It is, of course, the work of the genius Mencius Moldbug, a superior man loftily unaware of the petty squabbles on these here blogs, and in fact he wrote his explanation before either JD or I donned the mantle of trying to address recent developments in the United States. An excerpt:

When gentlemen look at progressivism, they see a movement whose purpose is to help the underclass, those whose plight is no fault of their own. When peasants look at progressivism, they see a movement whose purpose is to employ gentlemen in the business of public policy, by using the peasants’ money to buy votes from varlets. Who, in the peasants’ perception, abuse the patience and generosity of both peasants and gentlemen in almost every imaginable way, and are constantly caressed by every imaginable authority for doing so.

Not only had I read this two weeks ago, I even remarked on it in a discussion with sconzey in the comments to this post. I do urge you to go an read the whole thing, and then read the whole of Moldbug’s blog. It will take a long time, but it’s worth it.

I can only blame this omission of mine on my recent birthday; truly, it seems forgetfulness does come with advancing age…