part 2 "We're All Democrats Now"
  Foreign Affairs and Democracy 
  The dramatic shift away from republicanism that occurred in 1913, as expected, led to a bold change of purpose in foreign affairs. The goal of "making the world safe for democracy" was forcefully put forth by President Wilson. Protecting national security had become too narrow a goal and selfish in purpose. An obligation for spreading democracy became a noble obligation backed by a moral commitment, every bit as utopian as striving for economic equality in an egalitarian society here at home.
  With the growing affection for democracy, it was no giant leap to assume that majority opinion should mold personal behavior. It was no mere coincidence that the 18th Amendment- alcohol prohibition- was passed in 1919.
  Ever since 1913, all our presidents have endorsed meddling in the internal affairs of other nations and have given generous support to the notion that a world government would facilitate the goals of democratic welfare or socialism. On a daily basis, we hear that we must be prepared to spend our money and use our young people to police the entire world in order to spread democracy. Whether in Venezuela or Columbia, Afghanistan or Pakistan, Iraq or Iran, Korea or Vietnam, our intervention is always justified with a tone of moral arrogance that "it's for their own good."
  Our policymakers promote democracy as a cure-all for the various complex problems of the world. Unfortunately, the propaganda machine is able to hide the real reasons for our empire building. "Promoting democracy" overseas merely becomes a slogan for doing things that the powerful and influential strive to do for their own benefit. To get authority for these overseas pursuits, all that is required of the government is that the majority be satisfied with the stated goals- no matter how self-serving they may be. The rule of law, that is, constitutional restraint, is ignored. But as successful as the policy may be on the short run and as noble as it may be portrayed, it is a major contributing factor to the violence and chaos that eventually come from pure democracy.
  There is abundant evidence that the pretense of spreading democracy contradicts the very policies we are pursuing. We preach about democratic elections, but we are only too willing to accept some for-the-moment friendly dictator who actually overthrew a democratically elected leader or to interfere in some foreign election.
  This is the case with Pakistan's Mushariff. For a temporary alliance, he reaps hundreds of millions of dollars, even though strong evidence exists that the Pakistanis have harbored and trained al Qaeda terrorists, that they have traded weapons with North Korea, and that they possess weapons of mass destruction. No one should be surprised that the Arabs are confused by our overtures of friendship. We have just recently promised $28 billion to Turkey to buy their support for Persian Gulf War II.
  Our support of Saudi Arabia, in spite of its ties to al Qaeda through financing and training, is totally ignored by those obsessed with going to war against Iraq. Saudi Arabia is the furthest thing from a democracy. As a matter of fact, if democratic elections were permitted, the Saudi government would be overthrown by a bin Laden ally.
  Those who constantly preach global government and democracy ought to consider the outcome of their philosophy in a hypothetical Mid-East regional government. If these people were asked which country in this region possesses weapons of mass destruction, has a policy of oppressive occupation, and constantly defies UN Security council resolutions, the vast majority would overwhelmingly name Israel. Is this ludicrous? No, this is what democracy is all about and what can come from a one-man, one-vote philosophy.
  U.S. policy supports the overthrow of the democratically elected Chavez government in Venezuela, because we don't like the economic policy it pursues. We support a military takeover as long as the new dictator will do as we tell him.
  There is no creditability in our contention that we really want to impose democracy on other nations. Yet promoting democracy is the public justification for our foreign intervention.  It sounds so much nicer than saying we're going to risk the lives of our young people and massively tax our citizens to secure the giant oil reserves in Iraq.
  After we take over Iraq, how long would one expect it to take until there are authentic nationwide elections in that country? The odds of that happening in even a hundred years are remote. It's virtually impossible to imagine a time when democratic elections would ever occur for the election of leaders in a constitutional republic dedicated for protection of liberty any place in the region.
  Foreign Policy, Welfare, and 9/11 
  The tragedy of 9/11 and its aftermath dramatize so clearly how a flawed foreign policy has served to encourage the majoritarians determined to run everyone's life.
  Due to its natural inefficiencies and tremendous costs, a failing welfare state requires an ever-expanding authoritarian approach to enforce mandates, collect the necessary revenues, and keep afloat an unworkable system. Once the people grow to depend on government subsistence, they demand its continuation.
  Excessive meddling in the internal affairs of other nations and involving ourselves in every conflict around the globe has not endeared the United States to the oppressed of the world. The Japanese are tired of us. The South Koreans are tired of us. The Europeans are tired of us. The Central Americans are tired of us. The Filipinos are tired of us. And above all, the Arab Muslims are tired of us.
  Angry and frustrated by our persistent bullying and disgusted with having their own government bought and controlled by the United States, joining a radical Islamic movement was a natural and predictable consequence for Muslims.
  We believe bin Laden when he takes credit for an attack on the West, and we believe him when he warns us of an impending attack. But we refuse to listen to his explanation of why he and his allies are at war with us.
  Bin Laden's claims are straightforward. The U.S. defiles Islam with military bases on holy land in Saudi Arabia, its initiation of war against Iraq, with 12 years of persistent bombing, and its dollars and weapons being used against the Palestinians as the Palestinian territory shrinks and Israel's occupation expands. There will be no peace in the world for the next 50 years or longer if we refuse to believe why those who are attacking us do it.
  To dismiss terrorism as the result of Muslims hating us because we're rich and free is one of the greatest foreign-policy frauds ever perpetrated on the American people. Because the propaganda machine, the media, and the government have restated this so many times, the majority now accept it at face value. And the administration gets the political cover it needs to pursue a "holy" war for democracy against the infidels who hate us for our goodness.
  Polling on the matter is followed closely and, unfortunately, is far more important than the rule of law. Do we hear the pundits talk of constitutional restraints on the Congress and the administration?  No, all we ever hear are reassurances that the majority supports the President; therefore it must be all right.
  The terrorists' attacks on us, though never justified, are related to our severely flawed foreign policy of intervention. They also reflect the shortcomings of a bureaucracy that is already big enough to know everything it needs to know about any impending attack but too cumbersome to do anything about it. Bureaucratic weaknesses within a fragile welfare state provide a prime opportunity for those whom we antagonize through our domination over world affairs and global wealth to take advantage of our vulnerability.
  But what has been our answer to the shortcomings of policies driven by manipulated majority opinion by the powerful elite? We have responded by massively increasing the federal government's policing activity to hold American citizens in check and make sure we are well-behaved and pose no threat, while massively expanding our aggressive presence around the world. There is no possible way these moves can make us more secure against terrorism, yet they will accelerate our march toward national bankruptcy with a currency collapse.
  Relying on authoritarian democracy and domestic and international meddling only move us sharply away from a constitutional republic and the rule of law and toward the turbulence of a decaying democracy, about which Madison and others had warned.
  Once the goal of liberty is replaced by a preconceived notion of the benefits and the moral justifications of a democracy, a trend toward internationalism and world government follows.
  We certainly witnessed this throughout the 20th century. Since World War II, we have failed to follow the Constitution in taking this country to war, but instead have deferred to the collective democratic wisdom of the United Nations.
  Once it's recognized that ultimate authority comes from an international body, whether the United Nations, NATO, the WTO, the World Bank, or the IMF, the contest becomes a matter of who holds the reins of power and is able to dictate what is perceived as the will of the people (of the world).  In the name of democracy, just as it is done in Washington, powerful nations with the most money will control UN policy. Bribery, threats, and intimidation are common practices used to achieve a "democratic" consensus-no matter how controversial and short-lived the benefits.
  Can one imagine what it might be like if a true worldwide democracy existed and the United Nations were controlled by a worldwide, one man/one vote philosophy? The masses of China and India could vote themselves whatever they needed from the more prosperous western countries. How long would a world system last based on this absurdity? Yet this is the principle that we're working so hard to impose on ourselves and others around the world.
  In spite of the great strides made toward one-world government based on egalitarianism, I'm optimistic that this utopian nightmare will never come to fruition. I have already made the case that here at home powerful special interests take over controlling majority opinion, making sure fairness in distribution is never achieved. This fact causes resentment and becomes so expensive that the entire system becomes unstable and eventually collapses.
  The same will occur internationally, even if it miraculously did not cause conflict among the groups demanding the loot confiscated from the producing individuals (or countries). Democratic socialism is so destructive to production of wealth that it must fail, just as socialism failed under Soviet Communism. We have a long way to go before old-fashioned nationalism is dead and buried. In the meantime, the determination of those promoting democratic socialism will cause great harm to many people before its chaotic end and we rediscover the basic principle responsible for all of human progress.
  Paying for Democracy 
  With the additional spending to wage war against terrorism at home, while propping up an ever-increasing expensive and failing welfare state, and the added funds needed to police the world, all in the midst of a recession, we are destined to see an unbelievably huge explosion of deficit spending. Raising taxes won't help. Borrowing the needed funds for the budgetary deficit, plus the daily borrowing from foreigners required to finance our ever-growing current account deficit, will put tremendous pressure on the dollar.
  The time will come when the Fed will no longer be able to dictate low interest rates. Reluctance of foreigners to lend, the exorbitant size of our borrowing needs, and the risk premium will eventually send interest rates upward. Price inflation will accelerate, and the cost of living for all Americans will increase. Under these conditions, most Americans will face a decline in their standard of living.
  Facing this problem of paying for past and present excess spending, the borrowing and inflating of the money supply has already begun in earnest. Many retirees, depending on their 401k funds and other retirement programs, are suffering the ill-effects of the stock market crash- a phenomenon that still has a long way to go. Depreciating the dollar by printing excessive money, like the Fed is doing, will eventually devastate the purchasing power of those retirees who are dependent on Social Security. Government cost-of-living increases will never be able to keep up with this loss. The elderly are already unable to afford the inflated costs of medical care, especially the cost of pharmaceuticals.
  The reality is that we will not be able to inflate, tax, spend or borrow our way out of this mess that the Congress has delivered to the American people.  The demands that come with pure democracy always lead to an unaffordable system that ends with economic turmoil and political upheaval. Tragically, the worse the problems get, the louder is the demand for more of the same government programs that caused the problems in the first place- both domestic and international. Weaning off of government programs and getting away from foreign meddling because of political pressure are virtually impossible. The end comes only after economic forces make it clear we can no longer afford to pay for the extravagance that comes from democratic dictates.
  Democracy is the most expensive form of government. There is no "king" with an interest in preserving the nation's capital. Everyone desires something, and the special-interest groups, banding together, dictate to the politicians exactly what they need and want. Politicians are handsomely rewarded for being "effective," that is, getting the benefits for the groups that support them. Effectiveness is never measured by efforts and achievements in securing liberty, even though it's the most important element in a prosperous and progressive world.
  Spending is predictable in a democracy, especially one that endorses foreign interventionism. It always goes up, both in nominal terms and in percentage of the nation's wealth.  Paying for it can be quite complicated. The exact method is less consequential than the percent of the nation's wealth the government commands. Borrowing and central-bank credit creation are generally used and are less noticeable, but more deceitful, than direct taxation to pay as we go.  If direct taxation were accomplished through monthly checks written by each taxpayer, the cost of government would immediately be revealed. And the democratic con game would end much more quickly.
  The withholding principle was devised to make paying for the programs the majority demanded seem less painful. Passing on debt to the next generation through borrowing is also a popular way to pay for welfare and warfare. The effect of inflating a currency to pay the bills is difficult to understand, and the victims are hard to identify. Inflation is the most sinister method of payment for a welfare state. It, too, grows in popularity as the demands increase for services that aren't affordable.
  Although this appears to be a convenient and cheap way to pay the bills, the economic consequences of lost employment, inflated prices, and economic dislocation make the long-term consequences much more severe than paying as we go. Not only is this costly in terms of national wealth, it significantly contributes to the political chaos and loss of liberty that accompany the death throes of a doomed democracy.
  This does not mean that direct taxes won't be continuously raised to pay for out-of-control spending. In a democracy, all earned wealth is assumed to belong to the government. Therefore any restraint in raising taxes, and any tax cuts or tax credits, are considered "costs" to government. Once this notion is established, tax credits or cuts are given only under condition that the beneficiaries conform to the democratic consensus. Freedom of choice is removed, even if a group is merely getting back control of that which was rightfully theirs in the first place.
  Tax-exempt status for various groups is not universal but is conditioned on whether their beliefs and practices are compatible with politically correct opinions endorsed by the democratic majority. This concept is incompatible with the principles of private-property ownership and individual liberty. By contrast, in a free society all economic and social decision-making is controlled by private property owners without government intrusion, as long as no one is harmed in the process.
  Confusion Regarding Democracy 
  The vast majority of the American people have come to accept democracy as a favorable system and are pleased with our efforts to pursue Wilson's dream of "making the world safe for democracy." But the goals of pure democracy and that of a constitutional republic are incompatible. A clear understanding of the difference is paramount, if we are to remain a free and prosperous nation.
  There are certain wonderful benefits in recognizing the guidance that majority opinion offers. It takes a consensus or prevailing attitude to endorse the principles of liberty and a Constitution to protect them. This is a requirement for the rule of law to succeed. Without a consensus, the rule of law fails. This does not mean that the majority or public opinion measured by polls, court rulings, or legislative bodies should be able to alter the constitutional restraints on the government's abuse of life, liberty, and property. But in a democracy, that happens. And we know that today it is happening in this country on a routine basis.
  In a free society with totally free markets, the votes by consumers through their purchases, or refusals to purchase, determine which businesses survive and which fail. This is free-choice "democracy" and it is a powerful force in producing and bringing about economic efficiency. In today's democracy by decree, government laws dictate who receives the benefits and who gets shortchanged. Conditions of employment and sales are taxed and regulated at varying rates, and success or failure is too often dependent on government action than by consumers' voting in the marketplace by their spending habits. Individual consumers by their decisions should be in charge, not governments armed with mandates from the majority.
  Even a system of free-market money (a redeemable gold-coin standard) functions through the principle of consumers always voting or withholding support for that currency. A gold standard can only work when freely converted into gold coins, giving every citizen a right to vote on a daily basis for or against the government money.
  The Way Out 
  It's too late to avoid the turbulence and violence that Madison warned about. It has already started. But it's important to minimize the damage and prepare the way for a restoration of the republic. The odds are not favorable, but not impossible. No one can know the future with certainty. The Soviet system came to an abrupt end with less violence than could have ever been imagined at the height of the Cold War. It was a pleasant surprise.
  Interestingly enough, what is needed is a majority opinion, especially by those who find themselves in leadership roles- whether political, educational, or in the media that rejects democracy- and support the rule of law within the republic. This majority support is essential for the preservation of the freedom and prosperity with which America is identified.
  This will not occur until we as a nation once again understand how freedom serves the interests of everyone. Henry Grady Weaver, in his 1947 classic, "The Mainspring of Human Progress," superbly explains how it works. His thesis is simple. Liberty permits progress, while government intervention tends always to tyranny. Liberty releases creative energy; government intervention suppresses it. This release of energy was never greater than in the time following the American Revolution and the writing of the U.S. Constitution.
  Instead of individual activity being controlled by the government or superstitious beliefs about natural and mystical events, activity is controlled by the individual. This understanding recognizes the immense value in voluntary cooperation and enlightened self-interests. Freedom requires self-control and moral responsibility. No one owes anyone else anything and everyone is responsible for his or her own acts. The principle of never harming one's neighbor, or never sending the government to do the dirty work, is key to making the system tend toward peaceful pursuits and away from the tyranny and majority-induced violence. Nothing short of a reaffirmation of this principle can restore the freedoms once guaranteed under the Constitution. Without this, prosperity for the masses is impossible, and as a nation we become more vulnerable to outside threats.
  In a republic, the people are in charge. The Constitution provides strict restraints on the politicians, bureaucrats and the military. Everything the government is allowed to do is only done with explicit permission from the people or the Constitution.  Today, it's the opposite. The American people must get permission from the government for their every move, whether it's use of their own property or spending their own money.
  Even the most serious decision, such as going to war, is done while ignoring the Constitution and without a vote of the people's representatives in the Congress. Members of the global government have more to say about when American troops are put in harm's way than the U.S. Congress.
  The Constitution no longer restrains the government. The government restrains the people in all that they do. This destroys individual creative energy, and the "mainspring of human progress" is lost. The consequences are less progress, less prosperity, and less personal fulfillment.
  A system that rejects voluntary contracts, enlightened self interest, and individual responsibilities permits the government to assume these responsibilities. And the government officials become morally obligated to protect us from ourselves, attempting to make us better people and setting standards for our personal behavior. That effort is already in full swing. But if this attitude prevails, liberty is lost.
  When government assumes the responsibility for individuals to achieve excellence and virtue, it does so at the expense of liberty, and must resort to force and intimidation. Standards become completely arbitrary, depending on the attitude of those in power and the perceived opinion of the majority. Freedom of choice is gone.  This leads to inevitable conflicts with the government dictating what one can eat, drink or smoke. One group may promote abstinence, the other tax-supported condom distribution. Arguments over literature, prayer, pornography, and sexual behavior are endless. It is now not even permissible to mention the word "God" on public property. A people who allows its government to set personal moral standards, for all non-violent behavior, will naturally allow it to be involved in the more important aspects of spiritual life. For instance, there are tax deductions for churches that are politically correct, but not for those whose beliefs that are considered out of the mainstream. Groups that do not meet the official politically correct standards are more likely to be put on a "terrorist" list.
  This arbitrary and destructive approach to solving difficult problems must be rejected if we ever hope to live again in a society where the role of government is limited to that of protecting liberty.
  The question that I'm most often asked when talking about this subject is, "Why do our elected leaders so easily relinquish liberty and have such little respect for the Constitution?" The people of whom I speak are convinced that liberty is good and big government is dangerous. They are also quite certain that we have drifted a long way away from the principles that made America great, and their bewilderment continuously elicits a big "Why?"
  There's no easy answer to this and no single explanation. It involves temptation, envy, greed, and ignorance, but worst of all, humanitarian zeal. Unfortunately, the greater the humanitarian outreach, the greater the violence required to achieve it. The greater the desire to perform humanitarian deeds through legislation, the greater the violence required to achieve it. Few understand this. There are literally no limits to the good deeds that some believe need to be done. Rarely does anyone question how each humanitarian act by government undermines the essential element of all human progress- individual liberty.
  Failure of government programs prompts more determined efforts, while the loss of liberty is ignored or rationalized away. Whether it's the war against poverty, drugs, terrorism, or the current Hitler of the day, an appeal to patriotism is used to convince the people that a little sacrifice of liberty, here and there, is a small price to pay.
  The results, though, are frightening and will soon become even more so. Poverty has been made worse, the drug war is a bigger threat than drug use, terrorism remains a threat, and foreign wars have become routine and decided upon without congressional approval.
  Most of the damage to liberty and the Constitution is done by men and women of good will who are convinced they know what is best for the economy, for others, and foreign powers. They inevitably fail to recognize their own arrogance in assuming they know what is the best personal behavior for others. Their failure to recognize the likelihood of mistakes by central planners allows them to ignore the magnitude of a flawed central government directive, compared to an individual or a smaller unit of government mistake.
  C. S. Lewis had an opinion on this subject: "Of all tyrannies a tyranny sincerely exercised for the good of its victim may be the most oppressive. It may be better to live under robber barons than under omnipotent moral busybodies. The robber baron's cruelty may sometimes sleep, his cupidity may at some point be satiated, but those who torment us for our own good will torment us without end for they do so with the approval of their own conscience."
   A system that is based on majority vote rather than the strict rule of law encourages the few who thrive on power and exerting authority over other people's lives, unlike the many driven by sincere humanitarian concerns. Our current system rewards those who respond to age-old human instincts of envy and greed as they gang up on those who produce. Those individuals who are tempted by the offer of power are quick to accommodate those who are the most demanding of government-giveaway programs and government contracts. These special-interest groups notoriously come from both the poor and the rich, while the middle class is required to pay.
  It's not just a coincidence that, in the times of rapid monetary debasement, the middle class suffers the most from the inflation and job losses that monetary inflation brings. When inflation is severe, which it will become, the middle class can be completely wiped out. The stock market crash gives us a hint as to what is likely to come as this country is forced to pay for the excesses sustained over the past 30 years while operating under a fiat monetary system.
  Eric Hoffer, the longshoreman philosopher, commented on this subject as well:  "Absolute power corrupts even when exercised for humane purposes. The benevolent despot who sees himself as a shepherd of the people still demands from others the submissiveness of sheep."
  Good men driven by a desire for benevolence encourage the centralization of power. The corruptive temptation of power is made worse when domestic and international interventions go wrong and feed into the hate and envy that invade men's souls when the love of liberty is absent.
  Those of good will who work to help the downtrodden do so not knowing they are building a class of rulers who will become drunk with their own arrogance and lust for power. Generally only a few in a society yield to the urge to dictate to others, and seek power for the sake of power and then abuse it. Most members of society are complacent and respond to propaganda, but they unite in the democratic effort to rearrange the world in hopes of gaining benefits through coercive means and convince themselves they are helping their fellow man as well. A promise of security is a powerful temptation for many.
  A free society, on the other hand, requires that these same desires be redirected. The desire for power and authority must be over one's self alone. The desire for security and prosperity should be directed inward, rather than toward controlling others. We cannot accept the notion that the gang solution endorsed by the majority is the only option. Self-reliance and personal responsibility are crucial.
  But there is also a problem with economic understanding. Economic ignorance about the shortcomings of central economic planning, excessive taxation and regulations, central bank manipulation of money, and credit and interest rates is pervasive in our nation's capital. A large number of conservatives now forcefully argue that deficits don't matter. Spending programs never shrink, no matter whether conservatives or liberals are in charge. Rhetoric favoring free trade is canceled out by special-interest protectionist measures. Support of international government agencies that manage trade, such as the IMF, the World Bank, the WTO, and Nafta politicizes international trade and eliminates any hope that free-trade capitalism will soon emerge. |