The War Between The States never ended

 

Abraham Lincoln was no Socrates, pretending that a man can be neither slave nor master

 "As I would not be a slave, so I would not be a master. This expresses my idea of democracy."

If a man is not a master of himself, however, he will be a slave . . . to his passions, which include the desire to rule others.

In The War Between The States we exchanged the one tyranny over the Negro for a still more universal and thorough-going tyranny of the self.

The only free man who exists is the one who can say No to himself.

Abraham Lincoln started The War Between The States while under the influence of blue-mass, which gave him mercury poisoning and made him really angry

He took the pills for depression before the war, and didn't quit them until approximately June of 1865.

 

Wikipedia, here, so it must be true right?

 

For several years before his election to the presidency, Abraham Lincoln is known to have taken blue-mass pills for treatment of chronic melancholia.^[5]

 

It’s been reported that during this time, Lincoln was known to have experienced neurological symptoms, including insomnia, tremor and rage attacks, which suggests he may have been suffering from mercury poisoning.

 

 

 

 

 

However, a few months after his inauguration, Lincoln reportedly stopped taking the medication because he perceived the pills made him "cross".^[5]

 

In 2001, a study led by renowned public-health investigator Norbert Hirschhorn recreated a typical formulation,^[6]concluding that the quantity of blue mass that Lincoln likely took would have delivered "a daily dose of mercury exceeding the current Environmental Protection Agency safety standard by over 9000 times,"^[5] which may have adversely affected his health.

 

5."Lincoln's Little Blue Pills"(Press release). ScienceDaily: University Of Chicago Medical Center. 19 July 2001. Retrieved 2021-09-10.

 

6.  Hirschhorn, Norbert; Feldman, Robert G.; Greaves, Ian (Summer 2001). "Abraham Lincoln's Blue Pills: Did Our 16th President Suffer from Mercury Poisoning?". Perspectives in Biology and Medicine. Johns Hopkins University Press. 44 (3): 315–322. doi:10.1353/pbm.2001.0048. PMID 11482002. S2CID 37918186. Retrieved 2021-09-10.

It's always amusing to see what triggers CNBC liberals, in this case a Johnny Reb hat worn by US Senate hopeful Cindy-Hyde Smith

Appearances are everything to liberals, who are our time's cave dwellers of Plato's Republic, who have never seen a reenactment of a War Between The States battle, as I have right here in Yankee Michigan. Yes, we've had full blown Confederate armies here, the state which just witnessed a Democrat sweep of state offices in Election 2018.

A lousy gray hat from yesteryear triggers the headline (the blue Yankee hat goes unremarked):

Republican Sen. Cindy Hyde-Smith wore Confederate rebel hat in Facebook photo — 'Mississippi history at its best!'

Retiring Sen. Bob Corker demands Republicans raise taxes in order to cut them

We had to destroy the village in order to save it.

Bombing is the only way forward.

We had to have a war between the States in order to save them.

Export subsidies are necessary in order to preserve free trade.

I have abandoned free market principles in order to save the free market system.

The London Interbank Overnight Rate system had to be suppressed in order to save the banking system.

We had to bail out the banks so that we could sue them. 

The War Between The States cancelled in Manassas due to safety concerns

Here.

Rush Limbaugh Continues In Error: McCain Did NOT Get More Votes Than Romney

Rush Limbaugh can be so wrong sometimes it's infuriating, and once he gets some misinformation into his head, it's almost impossible to get it out of there. He can complain about the low information voters all he wants, but it's the lazy misinformation he spews which we all need to worry about, as when Rush won't allow Donald Trump into the conservative movement because The Donald wants to raise tariffs to beat the hell out of China. That's not conservative, Rush says, nevermind a tariff regime funded this country clear through the War Between The States and many decades thereafter. The fact is that Rush Limbaugh's version of conservatism doesn't win because it can't imagine America before 1913, isn't intelligent and doesn't compel assent for that reason. America still has an institutional memory, and the people still can tell when someone makes sense and when they don't.

Rush opened the second hour of the program today, here, claiming for the umpteenth time that Romney got fewer votes than McCain, which he didn't: "Obama got millions fewer votes in 2012 than he did in '08, but so did Romney get many million fewer votes than did McCain." This phone-it-in comment is in service of Rush's new vote suppression meme, i.e. Democrat suppression of Republicans, courtesy of the new IRS nonprofits targeting scandal. But the theory is completely unsupported by the facts of the last election. How different is this misinformation than the idea swallowed hook line and sinker by Republicans that they lost in 2012 because they lost the Hispanic vote? Maybe they lost the white vote. 

Romney polled 60.93 million in 2012 and McCain 59.95 million in 2008, okay? And Romney lost the election by half as many votes in the swing states as McCain lost it by in those same states. Romney was a better candidate than McCain, but he was still a bad candidate.

With what's happened with the IRS scandal I don't think Rush will ever be convinced he's wrong about the 2012 election numbers, even though he is.

That would require some effort on his part, and as we all know, the older we get, the harder that gets.

Barry Ritholtz Is Against The World Religion Of Gold

Barry Ritholtz here recently had some fun with the goldbugs, whom he ridicules as devotees of a "religious cult".

The piece is regrettably inflammatory. Doesn't he know he's writing off the whole world as a bunch of religious kooks in this temper tantrum? That's pretty much what ideologues do when reality won't cooperate with their theories, but surely he must know that sovereigns and central banks the world over continue to build their hoardes of gold year upon year, now approaching 32,000 tonnes and 20% of all the stuff ever pulled out of the ground. That's quite the foundation for the edifice of the worldwide church of gold.

In fact, many of the central banks in particular have been on a tear recently, acquiring the stuff in quantities not seen in 30 years. Evidently they are to a man possessed by the Oracle of Au (pronounced "Ow"). But try as they may to acquire new gold reserves, no one of them yet even comes close to the chief priest bowing and scraping before the barbarous relic, namely the USA, the number one holder of gold in reserve to the tune of 8,134 tonnes (not to be confused with tons). 

That even the USA with all its fiat money still considers this gold to be the most sublime of all currencies can be seen in its own gold issues. Gold Eagles, in one ounce sizes down to tenth ounce, are denominated from $50 down to $5. It says so right on the coins. (I understand if you don't believe me because you haven't seen one. They are expensive these days.) I myself haven't seen one of these things in my change at Walmart recently, or anywhere else, but theoretically you could. In various places around the country they are in fact found in Salvation Army kettles from time to time, usually around the time of a holiday formerly known as "Christmas".

There is a reason for what appears on a Gold Eagle: The US government has decreed that gold is money, and that the price of gold cannot fall. It has fixed the price at $42.22 per troy ounce since 1973, and it hasn't fallen since. The one ounce $50 Gold Eagle thus closely approximates this valuation, as it should if America wants to maintain its credibility as the leader of the free world and the spokesman for truth, justice and the, well, American way. The excess, in case you were wondering, is simply a small bonus in exchange for providing the world with both its security and its reserve currency, both of which are quite costly to the inhabitants of the land of the free.

Over our long history, the price of gold has indeed risen despite the best efforts of "manipulators" to stop it from doing so. For a long time the price of gold had been ruthlessly kept down at $20.67, from the War Between the States to FDR, but suddenly became $35 when the greatest Democrat ever saved us from the bad old ways. Not to be outdone, however, the great Republican Richard Nixon managed to make gold higher still, at $42.22, where it has stood ever since.

See, the price of gold hasn't ever fallen in America, it's only risen, just like Jesus. It's God's will. It is our manifest destiny.

That said, more people these days do need to come to accept the reality of this defacto gold standard to which our benevolent government all too secretly adheres. Younger generations of mockers actually have arisen among us who need to repent of their intemperate outbursts against gold and believe in the Gold Gospel once again. Instead of denying the reality of this kingdom of gold, which is really present here and now in the sacramental dollar, they need to wake up and consider the future possibilities of our great civilization and its gold religion.

Perhaps then there would be more public support for all these central bankers who print funny money to drive gold prices higher, especially for our own Ben Bernanke at the Federal Reserve who far excells all others at this. What he really needs most right now is more public encouragement to use that funny money like our competitors do in the world. Like them, we need to start augmenting our gold reserves once again using funny dollars to buy gold just as they are doing using, say, funny yuans. After all, this is actually a divinely sanctioned practice, what the Bible calls making use of "unrighteous mammon". You can look it up, it's right in there. Ben really needs to get on this right away. It should be a matter of his monetary policy to drive up the price of gold by hoarding it. Who knows, maybe we can even get our tonnage back up where it used to be after WWII, around 20,000 tonnes, and just think, all it will cost us is some paper and ink.

Meanwhile gold continues to work for us in season and out of season, in good times and in bad. Our reserves have seen us through thick and thin, whether it's been the boom times under Reagan/Bush/Clinton or the misery index years of Jimmy Carter or the new depression years of Barack Obama. Our gold is still there, just like the flag. It hasn't rusted, shrunk in the rain, or even tarnished. Good as gold as they say. Things might be even better if we had more of it, but you've got to be thankful for your blessings, thankful for what you do have.

The truth is, even in the very worst of circumstances imaginable gold has performed miracles for people. A few well-placed gold coins not that long ago meant the difference between some of our fellow countrymen coming here or going to the gas chambers. Ask them and their progeny if escaping an apocalypse wasn't "just fine", even if they were penniless afterward.

No, the only suckers when it comes to gold have been those who let theirs go when misguided government came looking for it. Some of those babies confiscated in 1933 now fetch $300,000. The rest appreciated in value in their melted down form in the government's vault, but only 6600%. You could go to Harvard today with just 120 of those ounces. In the present banks and governments across the globe are finding the collateral gold provides rather more reliable than US Treasuries in a pinch, which is why they keep acquiring it. Evidently we haven't yet understood the message that this sends. 

It's true in a sense that gold is a rejection of government control, but only in the sense of its opposite, self-control, which is what in America is the unique basis of our form of government. It was an idea bequeathed to us by Protestantism, and also by Plato, both of which are unhappily out of favor. But seeking to control your own destiny, which is what many foreigners are doing by acquiring gold, is actually the sincerest form of flattery of what the United States used to stand for. Free from the control of a reserve currency, there's no telling what others in the world may accomplish without us. But under a universal currency, there's no telling what we could still accomplish together. 

Joel Kotkin Urges Republicans To Join The Class War

"It’s time for Republicans to break with the traditions of Goldwater, Reagan, and, particularly, Bush and shift to something more akin to the party’s roots in the mid-19th century. This party needs less preaching and libertarian manifestos that essentially defend plutocracy. Instead it’s time to embrace class warfare on today’s gentry, and embrace the aspirations of today’s middle-class. Honest Abe in 2016?"

Egging on the Republicans to embrace Marxist class categories and methods and pretending that's not an appeal to ideology, Joel Kotkin here thinks Republicans could win again if only they gave stuff to the yeoman class and took away stuff from the clerisy. You know, like his hero Pres. Abraham Lincoln did when he signed the Homestead Act in 1862, which gave away 160 acres out west to anyone who would improve the land, and when he signed the Emancipation Proclamation, which took away the property of slaveholders without compensation. Like all good dictators, Lincoln made notions of property and its value even more arbitrary than they had been before.

It is little appreciated how the Homestead Act basically destroyed the flexibility of the federal revenue system, causing the federal government to rely increasingly on tariffs and also excises which up until The War Between The States had fluctuated up and down as revenues from federal land sales did the same.

So Anderson and Martin, here, who emphasize the substitutability of tariff and land sales revenues:


"Coinciding with the rapid increase in land grants to homesteaders, railroads, and the states after 1862, the federal revenue derived from land sales fell rapidly as a proportion of total receipts. Further, the general decline in tariff rates that had occurred until the Civil War was reversed, and tariff rates began to rise rapidly. Import duty rates, which had reached their lowest level in the century in 1857, increased sharply during the Civil War and remained high for the remainder of the century (Baack and Ray 1983, p. 73). Tariffs continued to be the single most important source of federal revenue after the war ended."

So in an important sense, Lincoln and the Republicans are to blame not just for the development of Our Enemy, The State, they are also to blame for setting the untenable conditions to fund it as it henceforth and inevitably grew large. In the end, the price of Union and black emancipation would be universal bondage to Leviathan with the coming of the Income Tax in 1913.

Kotkin completely misses the significance of what's going on on the right. Conservatives in America are rediscovering the meaning of the constitution, and how people like Lincoln ruined it. Mitt Romney with his incessant talk of American supremacy in the world simply reminded them too much of him.

Kotkin's correct about one thing, though, that the socialism of Obama is misunderstood. But Kotkin doesn't call it the fascism that it is, because Kotkin himself actually advocates it himself, only that it's the good kind which helps grow the middle class.

From the comments section, Kotkin says as much:

"i am an old-style democrat who favors using government when necessary to create an ever-larger property owning class. neither party today has this as its main focus. instead both are neo-feudalist as I will explain in the coming months."

Old style democrat? You know, the FDR kind, which admired and imitated the strong men of Europe, who eventually plunged the world into a war far bloodier than, but no less reminiscent of, Lincoln's.

Conservatives want to get rid of the imperial presidency, not just get one friendly to its interests.

Joel Kotkin's "New Geography" isn't old enough.

Price Of Gold Adjusted To The Purchasing Power Of The Dollar

What is today's fair value price of an ounce of gold? Is it really $1,579 the ounce?

In 1913 the price of gold was still fixed at $20.67 the ounce and remained there until FDR devalued the dollar and fixed the price at $35 the ounce. It wasn't until 1971 that gold convertibility was finally ended and the dollar allowed to float completely freely. Today's gold price represents a price increase of over 7500 percent from $20.67 the ounce, which was gold's prevailing price after the War Between The States until the establishment of the Federal Reserve in 1913 and right up to the Great Depression election of FDR in 1932.

Does that sound right to you? 7500 percent?! 

One way to decide is to see what's happened to the dollar in terms of its purchasing power since 1913, which marked the end of a long 35 year period of dollar purchasing power stability.

From 1913 through 2011, the dollar's purchasing power has declined so much that it took $23.40 to buy in 2011 what $1 could buy in 1913. Another way to say that is the dollar has suffered a devaluation of 2340 percent over the period.

So if you applied that percentage to the price of gold in 1913, you'd arrive at a gold price in 2011 of $484 the ounce, suggesting that today's gold price is inflated by about 226 percent and needs to fall about $1,095 the ounce.

Opinions vary on the fair price of gold, from $218 (Woodhill's calculation of purchasing power) to $800 (Tamny's ten year average) and even today's market value around $1,500 (Lewis).

I think it is interesting that gold ended both 2003 and 2004 below $440 the ounce. It was in November of 2004 that GLD, the SPDR Gold Shares, first made its appearance on the NYSE, making daily speculation in gold like daily trading in a stock.

It has hardly looked back since, but it probably should, and probably will.

Federal Revenues Came From Tariffs and Land Sales in First Half of 1800s, From Tariffs and Excises in Second Half

A largely forgotten fact when discussing the history and meaning of US tax policy.

Gary M. Anderson and Dolores T. Martin examined the role of land sales in considerable detail in 1987 here.

I provide a few excerpts:

[F]rom 1800 until the beginning of the Civil War, proceeds from the sale of public lands constituted a major source of revenue for the federal government, accounting for 48 percent of net receipts in 1836. ...

After 1820, receipts from land sales became a major component of federal revenues. During 1836, for example, receipts from land sales exceeded 48 percent of total federal revenues. From 1820 to 1860, receipts from land sales averaged 10.8 percent of total federal receipts per annum.

From the program’s beginnings in 1796 until 1862, privatization of the public lands via sales to the private sector scored several major successes. By 1862, acreage equaling about 67 percent of the public domain in 1802 had been sold, and land sale receipts provided a significant, although fluctuating, fraction of total federal revenues. ...

Before the Civil War, proceeds from land sales and tariff revenues were the two major components in federal receipts. The proceeds from these different sources were highly substitutable; one dollar of revenue from land sales could replace one dollar from a tariff and vice versa. There is strong evidence to suggest that this substitutability may have been a significant factor in the demise of the system of revenue-maximizing land sales.

Of course the rise in reliance on excises from 1862 onwards could also explain why reliance on land sales declined to almost nothing by century's end, quite apart from the so-called rent-seeking aspects of tariff politics which the authors explore. But they seem not to notice the role of excises.

Excises on alcohol and tobacco ramp up dramatically to $100 million to $150 million per year from 1862, from next to nothing beforehand, while tariffs move up and down around a trendline of $200 million in revenues per year starting also at the same time, having been in the $50 million and below range per year for most of the century prior to the War Between the States.

The importance of alcohol, and tobacco, in the social and economic history of America should not be underestimated, as Daniel Okrent's important recent book on Prohibition has reminded us.

Gotta go. Time to light up and have a drink!

The 1913 Income Tax Enabled Stark Increases to Government Revenues to Pay for WWI

Revenues went up by a factor of 6 in three short years, and dramatically reversed federal reliance on tariffs, excises and other taxes of one kind or another to finance the preponderance of government spending. Note the overnight reversal between 1917 and 1918 in the income tax share of the federal revenue. The analogy today would be like going from $3 trillion in revenues to $18 trillion.

Excises on alcohol started disappearing in 1920 with enactment of Prohibition. Such taxes had routinely accounted for 20-40 percent of all federal revenues from the War Between The States until that time. Over the course of a decade from 1920 through 1932 alcohol excises dropped in the end by a factor of 10, but instantly surpassed their 1920 levels with Repeal in 1933, a year in which everyone desperately needed a drink.

Angela Merkel Believes in Magic, Which is a Very Bad Sign For Us All

As reported here, by Ambrose Evans-Pritchard:

Chancellor Angela Merkel said the ruling validated her rescue policies, and once again vowed to do whatever it takes to ensure the survival of monetary union.

"History has shown that countries with a common currency never wage war against one another, and that is why the euro is far more than just a currency. If the euro fails, Europe fails. It must not fail, and will not fail," she said in an emotional speech.

This faith in a mere currency construct is the same sort of faith neo-conservatives in America have in the political-economic construct known as democracy, the chief article of which faith is that democracies don't make war on democracies. Nevermind that Washington, DC, has been at war with the fifty united States since the American War Between The States. And make no mistake about it . . . that war has not been won even yet, otherwise there would be no such thing as a Tea Party.

If and when that war is won and the Tea Party disappears, the rest of the world should be afraid. Very afraid. For that is when you will discover that democracies have always gone to war to survive.

Long live The Republic.

Democracy? Not so much.

I Guess That British Kid Who Told Obama He was a Pussy was Right

Matthew Franck weighs in here with an excellent discussion of Obama's concession to judicial supremacy in the case of DOMA:

Obama is the "un-Lincoln," a president who would rather hint, and wheedle, and pine for an eventual Supreme Court ruling in favor of same-sex marriage, than forthrightly assert the equal standing of each branch of government to act on its own understanding of the Constitution. He makes no challenge to the reigning doctrine of judicial supremacy. Obama is instead the Court's courtier, surrendering the dignity of his office, and the legislative power of Congress, to a hope that the Supreme Court too will "evolve" in its view, change the effective meaning of the Constitution, and foist same-sex marriage on the American people with an authority more difficult to challenge than that of a mere president.

Mr. Franck rather likes Mr. Lincoln. But even if olde Abe was an acute practitioner of a constitutional departmentalism now lamentably in decline, the War Between the States proves that correct interpretations of some things do not always protect us from fanatical interpretations of others. There's only one Trinitarian monotheism.

On the British kid, see here.

War is the Father of Everything

 

 

 

 

 

 

 

 

 

 

 

From the very long term perspective, the spending on World War II which supposedly got us out of the Great Depression did nothing of the sort. It erected an enormous edifice which became the foundation for the present trouble, which is masked in the ever declining purchasing power of the dollar, the 1928 version of which is worth eight cents in 2008, the 1910 dollar, four pennies.

Instead of climbing out of that debt foxhole, we're digging it ever deeper, and the vicissitudes of a history of our own making are raining down upon us a torrent that will become a flood, collapsing the unsupported walls around us. The world knows a worthless currency when it sees it.

Heraclitus taught us that war is the father of everything and king of all.

 

Consider the chart above.

 

The very American nation was itself born of monies borrowed to finance its War of Independence. Mark the sudden upticks in expenditure as a percentage of gross domestic product which commence with the War of 1812, the War Between the States, World War I, the response to the crash of 1929 and World War II, the Peace Through Strength policy to defeat the Soviet threat begun under the Reagan administration, and the adventures in Afghanistan and Iraq since 2003. We've been paying for all that with the continuing slide of a fiat dollar.

Jesse thinks the day of reckoning fast approaches:

 

The States racked up some serious debt in keeping the world safe for democracy in the Second World War. On a percentage basis, it has recently spent a significant amount keeping its financial sector safe from productive effort and honest labour. They will raid the Treasury, take their fill, and then compel the government to confiscate the savings of a generation by defaulting on its obligations, its sovereign debt.

So does Sprott Asset Management, here:

In case you failed to catch it in our previous articles this year, we thought we’d state it outright for our readers this month: the United States Government is on a trajectory to default on their obligations. In its current financial condition, it will not be able to fund its forecasted budget deficits and unfunded Social Security and Medicare promises on top of its current debt obligations. This isn’t official yet, and we don’t know when the market will react to it, but there is no longer any doubt about the extent of their trajectory. There simply isn’t enough taxing power, value creation or outside capital willing to support its egregious spending.

The great imperative of our time is to bring spending to a halt, or as Jesse says, to need little, and want less. Willingly or no, little and less await us.

Yet Reason frowns on war's unequal game,

Where wasted nations raise a single name,

And mortgaged states their grandsires' wreaths regret,

From age to age in everlasting debt;

Wreaths which at last the dear-bought right convey

To rust on medals, or on stones decay.

 

-- Samuel Johnson, The Vanity of Human Wishes