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How to Defeat Your Government, by Robert Gore

Posted by straightlinelogic 8 years, 10 months ago to Government
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There is surprisingly little written about attacking the government at its weakest point: its financial dependence (see, however, “Revolution in America,” SLL). An offensive would require a mass movement far less massive than that required for armed revolt, and its tactics would be legal. A few million simultaneous phone calls and requests via websites for the withdrawal of balances from banks, money market funds, and stock and bond mutual funds would precipitate a financial panic. None of those institutions keep enough cash on hand to meet a tsunami of redemption and withdrawal requests. They’d have to sell their assets to raise cash. The prices of those assets would drop, begetting further selling; negative crowd psychology and wealth effects would kick in as markets crash, and debt and economic activity would contract.

The biggest loser in all this would be the government. As prices for bonds drop, interest rates rise, increasing its debt service. As economic activity contracts, tax receipts drop, safety net spending rise, crony capitalists must be bailed out, and deficits expand. Except for interest on government debt rising (it was perceived as a safe haven) all of this happened during the last financial crises. A massive increase in government debt and central bank debt monetization forestalled complete disaster last time. Even some of their proponents admit that those palliatives are now exhausted. During the next crisis, interest rates will rise on government debt to reflect its increasing credit risk.

This is an excerpt. For the rest of the article, please click the link above.
SOURCE URL: http://straightlinelogic.com/2016/02/07/7105/


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  • Posted by CircuitGuy 8 years, 10 months ago
    Your previous posts on what money could be (if we never knew the fractional reserve system we have today) have made me reconsider the nature of monetary policy, but I reject the notion of trying to create a monetary collapse to get to gov't reforms.

    Here is how I understand the claims:
    - Taxes are not voluntary – I disagree with this. If you ask people if they supporting having a huge military, improving the roads, imprisoning more people than almost any other country, paying for their aging parents' medical care, most people want gov't doing some of those in large way. That makes me think people do support taxes. They support having an IRS so people don't free ride.
    - Gov't borrowing rests on loose monetary policy and controlling the reserve currency of the world. – I agree with this. It would be harder and more expensive to borrow using some other medium of exchange.
    - Gov't existence rests on borrowing – I disagree. If it can't borrow, it has to raise taxes or cut services. Maybe the tax hikes would make citizens think twice about spending programs. But gov't would not cease to exist if it had to live within its means.
    - People selling Treasuries and other assets in unison would cause a crisis. - I agree.
    - If the crisis were big enough to collapse the entire monetary system, it would lead to “reinstating liberty”. - This did not happen with the monetary collapse on the Weimar Republic.

    I agree with the general idea that undermining the monetary system puts stress on the gov't, but I don't agree that the stress pushes gov't in a positive direction. You talk about “[promoting] more foreign military intervention, domestic spending, taxation, redistribution from the productive to the nonproductive, and economically destructive regulation,” with the idea that it will undermine the gov't and lead to a better world. This reminds me of the religious fanatics who want to destroy the world to hasten the arrival of the end times. This crops up throughout history; there is a human proclivity to feel like a great flood would wash away the decadence in the world, making room the righteous to build a better world. I reject any suggestion of trashing this world to make room for a better world to come.
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    • Posted by Lucky 8 years, 10 months ago
      Very odd reasoning to argue that taxes are voluntary.
      The examples just tell us that people are in favor of many things that cost money and they want more as long as other people pay.
      If you add to each expenditure question, the extra amount that has to paid as tax, or the amount already being paid that would otherwise be refunded, the answer will be quite different. So to use one of the examples, I could say, stuff tax to pay for other people's aged parents, I struggle to support my own, and that is how it should be.
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      • Posted by CircuitGuy 8 years, 10 months ago
        "If you add to each expenditure question, the extra amount that has to paid as tax, or the amount already being paid that would otherwise be refunded, the answer will be quite different. "
        I know. I wish they had them tied together. So as soon as they passed something, the withholding tables would be updated and your next paycheck would go up or down.
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        • Posted by blackswan 8 years, 10 months ago
          Obfuscation is a necessary part of the scam. If your money just goes into a black hole, where you have no idea what each idiotic idea costs, then there will be a lot less resistance to the next tax hike. If each expenditure could be quantified, people might have a different attitude about government spending.
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    • Posted by Zenphamy 8 years, 10 months ago
      I didn't see the article as a method 'to get to gov't reforms', but rather a way to hasten an already in progress collapse of a failed governmental system.
      The present system of gov't cannot be meaningfully reformed in any manner significant to freedom and individual rights.
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      • Posted by CircuitGuy 8 years, 10 months ago
        "The present system of gov't cannot be meaningfully reformed in any manner significant to freedom and individual rights."
        I don't have the formula to reform or reboot, but I think what we have is amazingly better than most people in most of history. We set aside a third (half for those of your who earn more) of our profits for state and federal income taxes. That's not to mention all the other little fees and sales taxes. Despite this, freedom to keep what you earn, do your own thing, and not have to worry about your safety while you do it is amazingly good compared to history.
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          Posted by Zenphamy 8 years, 10 months ago
          The US currently ranks #19 on freedom and the last 3 years have each experienced the highest #'s of US citizens leaving the US and giving up their citizenship.

          As to the % we have taken for income taxes, that's a drop in the bucket to what we really pay. If you follow the trail of raw material through each stage of producing, transportation, intermediate processings, warehousing, resales, etc., etc., to final usage in a product, plus those same taxes applied to the consumable goods, machinery, land, buildings, etc., etc. necessary to accomplish each step, continuing on until final sale to a consumer; realize that at each and every step taxes are applied which are included in the cost of goods with sales tax added, and in some cases, taxed again annually if you maintain ownership---you can then begin to grasp the true taxes (pyramidal) that the US, state, and local gov't imposes on it's citizenry. And then they still have to borrow and saddle the rest of us and our children with future, unpayable levels of debt. All of that taken under threat of Gov't force up to and including the use of deadly force. I'm not sure I agree to 'amazingly good' compared to history. It sounds a whole lot like slavery to me.
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          • Posted by CircuitGuy 8 years, 10 months ago
            " I'm not sure I agree to 'amazingly good' compared to history. It sounds a whole lot like slavery to me."
            A harsher slavery is the norm. That certainly does not make it okay. I'm just saying we've made so much progress in respecting the rights of people to do what they want keep what they make; we should keep going.
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  • Posted by wiggys 8 years, 10 months ago
    Our government (THEY) not we want but we have it, it is in the process of destroying itself. They have destroyed the educational system so we have a bunch of dummies growing up all around the country. They are in the process of destroying ALL industry in the country so there eventually will not be any employment. They are currently doing as much as they can to take away ALL of our freedoms. They are doing as much as possible to take away ALL of our money. This process takes time but it is as it has been, been going on for over 150 years and will continue only the pace is picking up.
    In my opinion the complete collapse is maybe 20 to 40 years away.
    Those smarty pants in power have no concept of what is going on because they are having what the consider success in gaining more and more control over us.
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  • Posted by WilliamRThomas 8 years, 10 months ago
    Government is parasitical on society.

    This plan to starve the government involves killing the economy, the life-blood of society. That's worse for the patient than the disease.

    I can think of two ways to reform government without destroying society:

    1) Mass civil disobedience.

    2) War, backed by strong popular support, so the fighting can be targeted at the worst holdouts.
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    • Posted by freedomforall 8 years, 10 months ago
      Just started reading a book possibly on that topic,
      Killing the Host: How Financial Parasites and Debt Bondage Destroy the Global Economy, by Michael Hudson.
      Too early in reading to say if the book is based on reality though. Seems to favor socialist solutions if early summary is indicative.

      I favor civil disobedience and consumer strike on non essentials, with local preparation to produce essentials. There will be a significant response against any disobedience or strike, and those essentials are the weakest point.
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  • Posted by Owlsrayne 8 years, 10 months ago
    Excellent essay Robert. But, I have a feeling that before a fimancial crisis arises there could be two events that could cause a total collapse. First, would be man-made: which would be an attack on part or significant portion of the nations electrical grid.
    The second, would be natural forces such as a high magnitude earthquake, the Yellowstone cauldera detonating, and weather damaging a major section of the country.
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  • Posted by $ Olduglycarl 8 years, 10 months ago
    The scary thing in their response is "Barny/Frank..which allows a bank to use the deposits, savings, investor stock holdings and even contents in customers lock boxes. to keep themselves afloat. That's their bailout.
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  • Posted by LibertyBelle 8 years, 10 months ago
    I don't think it would be a good idea to suddenly
    collapse the government (at least not now, even
    if it were possible). Then some Mideast country
    could attack us. If things got desperate enough,
    maybe I would agree with it. But as yet, we can
    try to convert enough people. We're not com-
    pletely censored yet, for instance. There's still
    time.
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  • Posted by $ sjatkins 8 years, 10 months ago
    Given the current state of the country and the world where the vast majority have little or no understanding of freedom and inalienable rights and their real basis, where most think the purpose of government is to make their lives as comfortable and nice as possible, where most blame all ills on "greed" and the private sector - in that world what do you expect to be the result of a economic and government/business meltdown?

    I expect it to lead to all sorts of quite horrific things like massive civil disorder, martial law, strong man thug rule at various levels, persecution of all remotely wealthy, calls for mass nationalization, blaming our "arrogance and back to religious fundamentalism drives and all to easily to countries blaming one another and all out war.

    I predict gigadeaths. If there is any other workable choice then please push with all you have for that instead. We have far more to lose than we are at all likely to gain.

    It would be better to seek to gather like minded people and put together a real Gulch preferably in international waters or buy buying out a woebegone country. Generally it is better to create than to destroy.
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  • Posted by WilliamRThomas 8 years, 10 months ago
    Government is not an ill in itself. The service it provides, the enforcement of the law, is of great benefit to a great many. Certainly, I've lived with less and more of that service at various times, and I wouldn't want to be without it.

    Therefore, we need to bear in mind that we shouldn't seek to eliminate the government, but rather to properly frame its powers, keeping the good stuff.
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  • Posted by jetmec 8 years, 10 months ago
    You could always try the Ukrainian way, Take over all the public buildings, and hold large none violent protests, Till the president sends in the snipers and the army!
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  • Posted by Herb7734 8 years, 10 months ago
    It will depend on who is in the White House and how astute he/she is. Declare martial law, shut down all financial institutions, including money transfers and declare private ownership of silver and gold illegal and it will be the start of a "Temporary" repressive society.
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    • Posted by $ sjatkins 8 years, 10 months ago
      It will not depend. They will do this and much worse in such circumstances. They will also seek out "economic terrorists" whether they are any such thing or not.
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      • Posted by Herb7734 8 years, 10 months ago
        What I meant by that is if the executive was very astute he/she would be right on top of it, but if the Pres. is not that sharp and it takes two or three days for him/her to catch on to what's happening, there is a possibility that they might get away with it.
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