Tag Archives: Freedom

Worldwide Gun ownership and homicide rate info-graphic and the purpose of bad news

2/12/2013 Portland, Oregon – Pop in your mints…

Tonight’s State of the Union address by President Obama will once again draw a sharp focus on gun control, or lack thereof in the United States.  The theory held out by gun control advocates is that restricting access to guns will serve as a deterrent to violence.  Unfortunately, the statistics on a national and global scale argue firmly against this cause/effect relationship, as the following info-graphic illustrates:

image

Contrary to Utopian logic, an increase in overall gun ownership serves to decrease the rate of intentional homicides, not the reverse.

If a higher incidence of gun ownership paradoxically produces a lower intentional homicide rate, why would the idea of gun control be floated by the leader of the “Free” world at all, especially when such ideas are in clear contradiction with the document which He has sworn to uphold?

The Benefits of bad news

Mr. Obama and the rest of the well-meaning individuals who are at the head of the rallying cry for increased gun control have one thing in mind when they float such ideas:

Outliers

Columbine, Sandy Hook, and innumerable other mass shootings in recent history have cast a stigma over gun ownership that world improvers, our pet name for those who believe that they and only they know what is best for humanity, have latched on to as evidence that only certain persons should be allowed to possess firearms.

Clearly, mass shootings are horrific tragedies and attempts to avoid them should be made at all costs.   Again, paradoxically, they seem to occur in environments when the instigator(s) are the only ones in possession of a firearm.  However, while they race to the top of the news feeds when they occur, mass shootings are generally outliers to the human experience.  As such, while they are horrific tragedies, they are not as common as one would think.

It is for these reasons, both that they are uncommon and that they are horrific, that the national psyche attaches to them and examines them the way one would rise to investigate an unexpected sound in the night.  For it is our rightly held belief as human beings that these things should not be, and if they have occurred, then something must be wrong.  The glory of free societies is the indomitable belief that if something is wrong, we, the people, can work to make it right.

In this sense, while we cringe at the many headlines that announce a mass shooting, or any act of violence, for that matter, we have trained ourselves to breathe a sigh of relief.  For the very fact that they are being reported on means that an investigation of their root causes will rise to a level of national debate.  This reporting and national debate is one of the healthiest expressions of free speech that can occur.

While we do not believe that gun control will serve to mitigate tragedies, we are pleased that the debate rages on, for the answers are out there, and it gives us hope for all of mankind that we are diligently searching for it.

After you are shocked by the next tragic headline that comes your way, remember to give thanks for your reaction.  For this reaction, at its core, is an inkling of the hope for the betterment of all mankind that is alive and well within you.

So carry on, Mr. President, as Free men and women, we are privileged to hear you out, as well as disagree on solutions.  We share your sorrow at these events, and will work to make a better world for ourselves and our posterity.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for February 12, 2013

Copper Price per Lb: $3.72
Oil Price per Barrel:  $97.59
Corn Price per Bushel:  $6.96
10 Yr US Treasury Bond:  1.98%
FED Target Rate:  0.14%  ON AUTOPILOT, THE FED IS DEAD!
Gold Price Per Ounce:  $1,651 THE GOLD RUSH IS ON!
MINT Perceived Target Rate*:  0.25%
Unemployment Rate:  7.9%
Inflation Rate (CPI):  0.0%
Dow Jones Industrial Average:  14,019
M1 Monetary Base:  $2,522,600,000,000 LOTS OF DOUGH ON THE STREET!
M2 Monetary Base:  $10,334,600,000,000

An Open Letter to Evo Morales

10/29/2012 Portland, Oregon – Pop in your mints…

While we have taken the decision, along with a silent majority of Americans, not to vote in the upcoming national elections, this does not mean that we have given up hope for change, quite the contrary.

Here at The Mint, for better or worse, we have opinions that cannot be confined to a dot on a pre printed scantron form.  They require words and dialogue.

Enter the open letter.  If one is to effect change in this world, it is important to correspond with those who are in the seats of power and therefore have the ability to effect positive change in this world.  If we can change their mind, they can change the world.

When writing world leaders, it is important to both acknowledge their authority and use terminology which we understand to be important to them.  We must recognize them as an ally for we share a common aim, the good of themselves and their people.  Finally, as people who are derided daily for serving their populace, they need encouragement.

The following is a copy of our open letter to Evo Morales, the President of Bolivia.  A proper Spanish translation will be forthcoming.  Enjoy!

 

Evo Morales - President of Bolivia in Brazil 2007
Evo Morales – President of Bolivia, photo taken December 17, 2007 in Brazil by Marcello Casal Jr. of Agencia Brasil http://www.agenciabrasil.gov.br/media/imagens/2007/12/17/1840MC44.jpg

 

October 29, 2012

An open letter addressed to His Excellency Evo Morales Ayma, President of the Plurinational State of Bolivia,

Allow me to extend my warmest greetings to you, Mr. President, and to the honorable people of the great Andean Republic of Bolivia.  May they live long and prosper in the blessed land that they inhabit which you capably govern as their humble servant.

I have watched, both from near and far, your passion to liberate and elevate the Peoples which inhabit the land known today as the Plurinational State of Bolivia.  I have watched with admiration your courage and determination as you have risen to your current position and as you continue to labor daily for the liberation and dignity of those who have, for too long, been victims of unjust oppression.

I write you today for two reasons.  First, to encourage you in your noble struggle.  All great leaders, as you know all too well, face adversity, criticism, and opposition from those who are threatened by what they represent.  These forces have only increased in intensity as you take steps to repair centuries of injustices.  Know that though there may be some with loud voices who heap insults upon you for taking action while they sit idly by, there are many, though their voices be soft, who pray for your health, strength, and wisdom.

Our second motive for writing to you is to humbly offer you three principles which, to the extent they are followed, will allow the Peoples of the land known as Bolivia to excel economically.  Bolivia is already a rich land.  In the hands of the people, it will be made richer. 

Together with you, we reject the Neo-Liberal principles which have wrought destruction on those Peoples who have blindly employed them.  Our aim is to provide you with the tools with which not only Bolivia, but all of the inhabitants of the earth, can strive to observe the ten commandments to save the planet which you have generously contributed to the world.

While the titles of these principles may appear in conflict with your first and sixth commandments, we ask that you carefully read the explanations and see that the operation of these three principles will allow for the accomplishment of your ten commandments which to save the earth from exploitation.

A word of caution, it is exceedingly important that these economic principles operate together, or they will not operate at all:

Liberty:  Much has been written on the subject of Liberty.  Truly, it is the precursor to dignity and the cornerstone of all civilized human societies.  As it applies to economic policy, liberty means that Peoples will prosper to the extent that artificial restrictions on their ability to work, produce, and trade are removed.  The correlation between Liberty and civilized society is so great, that the chorus of the Bolivian anthem rings especially true:

“Morir antes que esclavos vivir!” {For those reading this in English, it translates as: “We will die before living as slaves.”}

The concept of Liberty, to be productive in society, must not be limited merely to speech and movement, as it is today in most societies which pretend that their inhabitants are free, but rather extended to the ability for a person to engage in trade and other activities at will to the extent that engaging in the activity does not infringe upon the Liberty or property of another.  This is the key to Liberty, as it keeps the earth in balance.  Dangerous imbalances occur when the Liberties of one group are subordinated to those of another.  Our third principle, Equality before the law, deals with this.

Perhaps most importantly today, Liberty must be extended into the banking and currency realm, leaving the decision of the most acceptable medium and methods of trade in the hands of the people.

Private Property:  For all of the virtues that the principle of Liberty bestows upon a people, the principle is nothing more than an intangible idea unless its natural byproduct, the principle of Private Property, is respected equally by all members of society.  The concept of Private Property is the basis for any and all productive activity which takes place on the earth, from sowing a field to building a wells to provide access to clean water.

Beyond the ownership of one’s person, which should go without saying, a person or group of persons must be able to lawfully possess property, which they may choose to work and share as they please, with the expectation that they will be able to both employ and enjoy the fruits of their labors.

In the same way, the principle of Private Property comes with the obligation to care for and maintain the property that one is entrusted with.  The principle itself provides the incentive for the property to be maintained as persons will naturally care for something that they will either enjoy themselves or prepare for sale to another free individual.

In order to be both productive and well maintained, Private property must be held at the individual, family, or community level.  If property is held by the government or another large entity, it will be exploited in the same way that property is today exploited by large corporations, who have no direct incentive to care for it after they have extracted the wealth from it.

Equality before the Law:  The principles of Liberty and Private Property must be secured for all by the concurrent operation of the principle of Equality before the Law.  For people to prosper economically, they must know not only which actions are permitted, but that the laws which are enforced are administered in the same manner to all members of society, regardless of perceived wealth or lack of wealth, race, sex, color, or origin.  Only if there is a perceived equality before the law can persons plan and carry out their daily activities.

Equality before the law is the basis for a just society in which people may prosper in accordance with their efforts to help their fellow-man by serving their most intensely felt needs.  As such, all laws in a society should focus on protecting both the life and rightful property of the individual or group, any law extending beyond these two realms necessarily serves to limit both the right to Liberty and Private Property which must be held sacred allowed to operate unhindered so that the greatest possible amount of material good can come to the greatest possible number of persons in a society.

We offer you these three principles, knowing that in your wisdom and benevolence, the Peoples who find themselves under your care will benefit greatly and become the envy of the nations of the earth, not for the natural wealth they care for and produce, but for the nobility of their convictions.

Your dedication and service to the people of Bolivia is an inspiration to all of humanity.  Our desire is to see all of the Bolivian people, and the Peoples of the world, live in balance and freedom with God, nature, and each other.

Be encouraged and may God bless you and all Bolivia.

All the best,

David Mint

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for October 29, 2012

Copper Price per Lb: $3.49
Oil Price per Barrel:  $95.54
Corn Price per Bushel:  $7.37 
10 Yr US Treasury Bond:  1.75%
FED Target Rate:  0.16%  ON AUTOPILOT, THE FED IS DEAD!
Gold Price Per Ounce:  $1,710 PERMANENT UNCERTAINTY
MINT Perceived Target Rate*:  0.25%
Unemployment Rate:  7.8%
Inflation Rate (CPI):  0.6%
Dow Jones Industrial Average:  13,107  
M1 Monetary Base:  $2,334,000,000,000
M2 Monetary Base:  $10,199,400,000,000

The Subtle Change from Principles to Rules Part IV of IV – What does it all mean?

5/14/2012 Portland, Oregon – Pop in your mints…

Today we will conclude our brief trip back to one of the origins of the agitation which is The Mint:  The Subtle Change from Principles to Rules.

The Subtle Change from Principles to Rules
The Subtle Change from Principles to Rules

The following is the final excerpt from our soon to be released free ebook.  It will be offered  for free through Smashbooks.com in all common ebook formats in the coming months.  What does it all mean?  Read on and let us know what you think!

What does it all mean?

At this point, we are forced to step back from the mud and ponder the events unfolding in the meadow and ask the questions that are raised in the parable, for they are of the utmost importance.

The parable highlights the subtle yet important difference between principles and rules.  In the meadow parable, the activities and projects referred to as meadow improvement represent rules.  Rules are made by those who either do not fully understand or do not desire to adhere to the principles of an activity and are generally imposed with the stated purpose of maintaining or “improving” the status quo.

Once a human institution, as the meadow was to represent, makes the subtle change from being guided by principles to being governed by rules, these rules fill the meadow with “cordoned off areas” and “canals” until no one can freely move about within them.

A glance at the following definitions will help us to better understand the conceptual difference between principles and rules.  A principle, according to the Encyclopedia, “signifies a point (or points) of probability on a subject (i.e. the principle of creativity), which allows for the formation of rule or norm or law by (human) interpration of the phenomena (events) that can be created.”  By contrast, a rule, according to dictionary.com, is “a principle or regulation governing conduct, action, procedure, arrangement, etc.”  Making a clear distinction between principles and rules is confusing because the terms are often used interchangeably to define two concepts that could not be more different.  This is why the change is subtle.

We must then attempt to compare and contrast these concepts in the following manner:  Principles make things possible.  Principles create.  Rules govern conduct or regulate.  Rules destroy.  With this understanding, we can now postulate that, while principles tend to create rules, rules tend to destroy principles once the propagation of rules dwarfs the principle that created them.  It is as if an invisible prison is constructed by the growing threat of going to a real one.

Does this mean that principles are bad because they create rules?  By no means, in the same way, rules are not bad either, but principles must be held above the rules that they create in order for the principles to maintain their power to create and make things possible.  Once rules are allowed to dominate, they thrust aside principles and a prison begins to quickly construct itself.

This is what our brilliant local CPA was alluding to in the GAAP Update seminar when he mentioned that the word “should” in of some of the pronouncements had been changed to “must.”  For this careful choice of words is perhaps the clearest manifestation of this subtle shift in American society, circa 2012.

The word “should” bestows some glimmer of freedom of choice upon the hearer.  As in “You should wear a jacket, its cold.”  While the word should implies a strong suggestion that would do well to heed, it is understood that one is free to ignore it, albeit at their peril.  Once the word “must” is placed in the same sentence, this freedom is removed and the only thing that remains is the expectation of punishment for non-compliance.  It describes this subtle change from principles to rules that is happening in not only in GAAP but in many other areas of society as well.

This choice of words will only lead to resentment and violence in the meadow, where those guilty of stealing water rations for their parched fellow meadow dwellers and for crossing into a cordoned off area are either incarcerated, banished, or exterminated in an increasingly futile attempt to keep the meadow clean.  While those dwelling in the meadow may gradually adjust to this dire state of affairs, it will be clear to all external observers that the once vibrant meadow has turned into a gruesome cross between a pig sty and a slaughter house.

Such is the fate of a society in which rules are employed to remove all semblance of freedom of its inhabitants.  It is not a question of if, but when.

It is abundantly clear that the principles of liberty and self-determination are the only antidote to the poison of rules once they have overwhelmed the principles that gave rise to them.

And what of the deer who began all of the bounding in the meadow in the first place?  Wouldn’t they have stayed around to ensure the freedom of bounding?  It is perhaps the greatest of ironies that these deer, who so fervently loved bounding and whose activities attracted the very people who would stifle and destroy it, would simply bound to another meadow as the first restrictions on bounding were drafted.

For it is the very nature of true freedom to respect the right to freedom of others.  Even if they choose to destroy the very freedom that has been accorded to them.

If you have enjoyed these musings, please share them with your friends and family via any means you deem appropriate.

In the case that you and feel mysteriously led to contribute financially to this author’s work.  Please visit click on the “Donate” button on the upper right hand side of this page.  All donations are accepted by The Wilcox Trading Company via Paypal, are considered sales of the book and, while given and accepted in a charitable spirit, may not be considered charitable donations by the IRS.

Thanks again and we wish you all the best, deer reader!

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Losing even blind faith in the Euro and USD, remembering Pearl Harbor

12/7/2011 Portland, Oregon – Pop in your mints…

Today we continue to watch the relative calm in both the stock and bond markets with our jaw hanging just inches from the floor.  In our estimation, the calm, or homeostasis, is perhaps the only thing that is completely inexplicable under the current state of affairs.

Just what is that state of affairs, you ask?  A few off the top of our head:

          Downgrades or the threat of downgrades to nearly every sovereign bond on the planet

          A resulting dearth of quality assets to be used as collateral in the financial system

          A debt based economy collectively attempting to live within its means

          The resulting collapse of the debt based economy

          An imminent war in Persia

But these are simply large events that are leading to a great number of small decisions which are in turn causing more unforeseen large scale events, etc.  The result being that, much to the chagrin of the financial authorities, a majority of the world is embracing frugality.

A quick recap for those are joining us for the first time, the powers that be, the current currency regime, rely on an ever expanding amount of debt in order to continue to function.  It is a system that is based on trust and blind faith, for it offers nothing of lasting value.

In the short term, the system, if functioning properly, allows a great deal of power to be centralized.  It also encourages, albeit indirectly, nearly every sort of vice and shuns virtue.  The system tends to reward bad behavior and to promote into leadership those who are least likely to possess a moral compass.

The system is no longer functioning as designed.  The reach of the currency regime is shrinking and will continue to shrink until the only ones who maintain faith in it are the most morally decrepit individuals and institutions on the planet.  They will continue to trade their increasingly worthless paper until they realize that they are simply shuffling paper amongst themselves, long after they have completely lost any semblance of control that they had on the situation.

Much of this paper shuffling is running through the stock and bond markets, and seemingly these markets are calm.  However, the illusion of stability is being maintained at the cost of trillions of new dollars and Euros being created which are rapidly losing value against anything tangible.

In the United States, the dollar will begin to significantly deteriorate sometime in March, according to our crude calculations.  The Euro, whose handlers have been late to start the game of shameless currency debasement, is more likely to implode with the European banking system as they gag on the sewage of assets that are on their balance sheets.

The great irony of the current currency regime is that a currency which has attempted to maintain its value will become extinct, shunned for one whose value is plummeting.

The Euro and US Dollar are showing the world the two paths that a currency regime can follow to destruction.  It will be interesting to see which car ceases to operate first, the motor that runs out of gas or the one that has its gas tank overflow and goes up in flames.

Either way the economy, which is the motor of the vehicle in the metaphor we have just jumped to, is currently being retooled to run on another type of combustible, one that will last much longer than the current blend of currency gasoline which is nothing more than flammable vapors.  If the currency, and the assets which back it have real value, the economic motor will be allowed to run at a more even pace.

Gold and Silver, ready or not, here we come.  Until then, the economy is sputtering and running on fumes.

Pearl Harbor

We cannot let today pass without a few brief words about Pearl Harbor.  Like 9/11, Pearl Harbor served as a national wake-up call.  Both served as the justifications for the largest military actions and suppressions of freedom (which seem to go hand in hand) that America has known. 

The explosion of the USS Shaw during the attack on Pearl Harbor, courtesy of the US National Archives

As this day that lives in infamy passes, we pause to honor those who perished in these events and the subsequent military actions which occurred as a result of these events.  May they rest in peace, and may mankind learn to avoid the suffering and sacrifices they had to endure at all costs.

War is not necessary and must be undertaken only after every other attempt to engage and deter an aggressor has been exhausted.  It is an act of desperation, not a form of economic stimulus, and it troubles us that the widespread loss of life and property has been referred to as the force which lifted the US out of the great depression.

Those who hold to such a theory are not only following an indefensible logic, they are hurling the ultimate insult to men and women who have fought to defend Freedom throughout history.  For any “stimulus” which has been observed is not the result of the decision of a politician to go to war, rather, it is a result their tireless efforts and indomitable spirits which lifted this and many other countries from the ashes of war.

We pray that more of these heroic efforts and indomitable spirits will not be squandered in Persia.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for December 7, 2011

Copper Price per Lb: $3.53
Oil Price per Barrel:  $100.51

Corn Price per Bushel:  $5.82  
10 Yr US Treasury Bond:  2.12%

FED Target Rate:  0.08%  ON AUTOPILOT, THE FED IS DEAD!

Gold Price Per Ounce:  $1,742PERMANENT UNCERTAINTY

MINT Perceived Target Rate*:  2.00%
Unemployment Rate:  8.6%
Inflation Rate (CPI):  -0.1%
Dow Jones Industrial Average:  12,020  

M1 Monetary Base:  $2,155,200,000,000 RED ALERT!!!  THE ANIMALS ARE LEAVING THE ZOO!!!
M2 Monetary Base:  $9,627,300,000,000YIKES UP $1 Trillion in one year!!!!

Revolution Fire Continues to Rage, What’s wrong with Anarchy?

For your weekend enjoyment we offer another classic Mint in its original form.  Enjoy and have a great weekend!

2/24/2011 Portland, Oregon – Pop in your mints…

Today we can hardly believe our eyes.  What appeared to be a simple revolution in a remote land, Tunisia, has begun a chain of events that may touch every person on the planet before it is through.  We will call it the “Fire” of revolution, at it seems to be catching everywhere.  The grievances of a generation are beginning to be aired in public forums from Tripoli to Madison, Wisconsin.  As you are aware, we are of the opinion that the spark for this fire began it what may appear to be a very far away place.  Washington, D.C.  
 
While many conspiracy theorists have their own, well, theories, we believe that this is collateral damage from the Federal Reserve’s misguided attempt to leave no debt unpaid by simply printing the money up to pay them.  It is simple enough to do in their ivory towers, but the consequences in the real world, in the form of trade and production imbalances, which are sometimes referred to as “Malinvestments,” are absolutely and totally destructive to balance in society.
 
The consequences of printing money are generally felt in two forms.
 
The most obvious form is what is being seen in Greece and now Wisconsin.  In these cases the government made promises to workers, retirees, and other constituents that they cannot honor.  The governments appear to be doing the honest thing and are effectively defaulting on these promises.  However, they are attempting to default at exactly the wrong moment, as the increased money supply begins to pinch workers in the developed world.  In both cases, many public workers are simply being asked to give up privileges such as the ability to take a long holiday at the beach.  In both cases, we are seeing sometimes violent evidence of just how hard it is for the government to default on its promises.
 
The less obvious and more damaging form of consequences are what we are seeing in Tunisia, Egypt, Yemen, Algeria, Bahrain and Libya.  In these cases, the governments are not technically defaulting on promises, rather, they are seen as the scapegoats for rapidly rising food costs which threaten to drive many to the point of starvation.  These rising food costs are the indirect result of the governments in the developed world attempting to give their public employees holidays at the beach.  Naturally, with the stakes higher in the developing world, a sense of desperation has set in and the pace of and violence involved in the uprisings is markedly higher.
 
Today we will go one step further at the risk letting the FED off the hook for sparking these revolutions with their insane monetary policy.  That step is to postulate that the cause of the flood of money and credit which has lead to higher food prices stems from people’s unwavering faith in their leaders and/or elected governments.  This unwavering faith, which stems from people’s need to feel secure, generates an inertia towards demands for a nanny state, in which the government is expected to take care of every legitimate and some illegitimate needs presented to them by the people. 
 
This arrangement appears to work very well as long as the government and/or leader appear to have the means to provide for these needs.  This arrangement is also the very reason that the government and/or leader will never have the means to provide for these needs indefinitely.  You see, this arrangement generally discourages productive activity and encourages unproductive activity (commonly known as freeloading and currently justified by vague appeals to any myriad of “rights”) which eventually leads to the shortages and imbalances that are at the root of the revolutionary fires that are currently raging.
 
Is Anarchy the Answer?
Central Banks like the FED are simply the enablers of this dangerous “Social Contract” that is being defaulted upon globally before our very eyes.  Their motivation for enabling is that the arrangement is extremely profitable for their member banks.  When stripped of its veil of legitimacy, the arrangement more resembles a drug cartel than a productive banking system.
 
So if the desire for government is truly the root of the problem, as we have speculated, then would not anarchy be the solution?  No!  You say!  Anarchy is chaos and destruction!  But is it really?  In the strict sense of the word, Anarchy simply means the absence of government.  In the absence of government, people would quickly understand that they would need to protect and provide for themselves.  This understanding would be quickly followed by the realization that in order to do this they will need to deepen their productive cooperation with their fellow man or woman.
 
When theft is no longer publicly sanctioned, suddenly the Golden Rule would become the law of the land, with its fruits of peace, freedom, and abundance following soon thereafter.
 
Until people realize that they need God more than they need a government, we will watch violent struggles to fill the vacuums of power currently being created.  Struggles that often give us such esteemed leaders such as Moammar Gadhafi in Libya, whose loyal tribesmen chose to ditch multimillion dollar aircraft in the desert rather than follow his orders to bomb the opposition, and Scott Walker in Wisconsin, who apparently has not mastered the use of caller ID or plain old fashioned voice recognition.
 
Stay Fresh!
 
 
 
P.S.  If you enjoy or at least tolerate The Mint please share us with your friends, family, and associates!
 
Key Indicators for Thursday, February 24th, 2011
 

Why the morally corrupt are assured of promotion in and leadership of the Might Makes Right ideological system – Part II

11/23/2011 Portland, Oregon – Pop in your mints…

If you were not able to join us yesterday for Part I, please take a brief moment to review it by clicking here:

Why the morally corrupt are assured of promotion in and leadership of the Might Makes Right ideological system – Part I

We will pick up where we left off…

The acts which are required to carry out an economic system doomed to failure inevitably insures that those who lead would be the worst amongst us in terms of adhering to any sort of moral code, for they have chosen to pursue the economic or political program above the obligations of morality, no matter what the cost.  They possess the ability to mute their conscience and oversee acts that are increasingly despicable and outrageous in pursuit of the aims of the program.

Hayek goes on to argue that as the Totalitarian economic and social program inevitably begins to fail, the leader of said system would increasingly deem it necessary to employ a larger number of individuals to enforce the increasing sacrifices required to continue the program.  He offers three reasons why this inevitable outcome further assures that the leader surrounds himself with and encourages the promotion of those who are capable of the worst forms of moral corruption:

“First, the higher the education and intelligence of individuals become, the more their tastes and views are differentiated. If we wish to find a high degree of uniformity in outlook, we have to descend to the regions of your moral and intellectual standards where the more primitive instincts prevail. This does not mean that the majority of people have low moral standards; it merely means that the largest group of people whose values are very similar are the people with low standards.

Second, since this group is not large enough to give sufficient weight to the leader’s endeavors, he will have to increase their numbers by converting more to the same simple creed. He must gain the support of the docile and gullible, who have no strong convictions of their own but are ready to accept a ready-made system of values if it is only drummed into their ears sufficiently loudly and frequently. It will be those whose vague and imperfectly formed ideas are easily swayed and whose passions and emotions are readily aroused who will thus swell the ranks of the totalitarian party.

Third, to weld together a closely coherent body of supporters, the leader must appeal to a common human weakness. It seems to be easier for people to agree on a negative program — on the hatred of an enemy, on the envy of those better off – than on any positive task. The contrast between the “we” and the “they” is consequently always employed by those who seek the allegiance of huge masses. The enemy may be internal, like the “Jew” in Germany or the “kulak” in Russia, or he may be external. In any case, this technique has the great advantage of leaving the leader greater freedom of action than would almost any positive program.

Advancement within a totalitarian group or party depends largely on a willingness to do immoral things.”

The Might Makes Right ideology, then, far from being a viable alternative to True Capitalism, assures a slow march towards a society which openly ignores the rule of law and, as a consequence, quickly becomes devoid of morality.

Can you now see why the ideological battle between True Capitalism and Might Makes Right is much more than a simple choice of economic systems, rather, it determines the moral basis upon which a majority of the society’s members will act.

 

Jon Corzine - A shining example of leadership in the Might Makes Right system

Unfortunately, we have a shining example of the phenomenon of the worst rising to the top in Jon Corzine, former governor of New Jersey and CEO of the now infamous investment bank, MF Global.  Mr. Corzine is a career investment banker and politician.  In other words, he has been firmly indoctrinated and skillfully trained in two of the most destructive trades known to mankind.

Mr. Corzine allegedly saw nothing wrong with raiding the cash accounts of MF Global’s clients in a vain attempt to stave off the firm’s bankruptcy which was declared on October 31, 2011.  There is no way to sugar coat what happened in the days leading up to MF Global’s demise.  MF Global allegedly robbed its clients’ accounts to meet its own obligations.  The fact that the commodity exchanges have been allowed to operate without immediately making the defrauded clients whole has caused an unprecedented breach of the trust which underpins the smooth operation of these exchanges.

Perhaps Mr. Corzine thought he was still a politician.  In Government, it has become a common and acceptable practice to rob a legally established trust fund and replace it with the government’s IOUs.

Mr. Corzine is but the most recent example of the level of hubris and moral corruption required to occupy a high level post in the government and financial sectors circa 2011.

The MF Global bankruptcy and subsequent actions taken by the regulators have called into question whether or not the rule of law will prove supreme in such a situation.  As a society increasingly leans towards a Might Makes Right ideology, the excuses for ignoring the rule of law proliferate.  Hayek observed the inextricable link between the rule of law and Freedom when he wrote the following:

“NOTHING distinguishes more clearly a free country from a country under arbitrary government than the observance in the former of the great principles known as the Rule of Law. Stripped of technicalities, this means that government in all its actions is bound by rules fixed and announced beforehand.”

The most famous modern excuses for ignoring the rule of law during the war on terror and the financial crises are: “These actions are taken in order to protect the American people,” and “These actions have been taken to ensure the stability of the Financial System.”

Fellow taxpayer, do you personally feel safer than 10 years ago?  Do you believe that the financial system is more stable than five years ago?

These are important questions, for the answer may reveal which side of the ideological battle one identifies with.  True Capitalism or Might Makes Right, for there is no ideological middle ground.

The governments of the world are busy tirelessly advancing a failed program.  It should come as no surprise, then, that nearly every action that the governments have taken to fight the war on terror and the financial crisis only seem to have made the original problem worse.

It is clear that as long as the Might Makes Right ideology is embraced by institutions and governments, those who are best able to ignore basic morality and the rule of law are most likely to populate their halls of power.

It should come as no surprise, then, that man’s only hope for justice is to reject Might Makes Right and embrace True Capitalism.  Only then will lasting peace and prosperity be attainable.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for November 23, 2011

Copper Price per Lb: $3.34
Oil Price per Barrel:  $98.01

Corn Price per Bushel:  $5.98
10 Yr US Treasury Bond:  1.95%

FED Target Rate:  0.08%  ON AUTOPILOT, THE FED IS DEAD!

Gold Price Per Ounce:  $1,700 PERMANENT UNCERTAINTY

MINT Perceived Target Rate*:  2.00%
Unemployment Rate:  9.0%
Inflation Rate (CPI):  -0.1%
Dow Jones Industrial Average:  12,096  

M1 Monetary Base:  $2,121,700,000,000 RED ALERT!!!  THE ANIMALS ARE LEAVING THE ZOO!!!
M2 Monetary Base:  $9,644,200,000,000 YIKES UP $1 Trillion in one year!!!!!!!

Why the morally corrupt are assured of promotion in and leadership of the Might Makes Right ideological system – Part I

11/22/2011 Portland, Oregon – Pop in your mints…

After a brief break in our faithful correspondence, we are compelled to pick up the proverbial pen to complete an incomplete thought in a vain attempt to eat Thanksgiving dinner in peace.  If you are a new reader of The Mint, we will simply relate that the Mint is the product of a deep felt agitation by its author.  It is what could be referred to as therapy.  The thoughts, once on paper, leave us in peace.  Until then, they stir, deep in our spirit, waiting to escape via these words.

How very fortunate and long suffering you are, fellow taxpayer.

Before we continue our mantra of Anarchy, True Capitalism, Natural Law, and Might Makes Right, we will share a few important observations.

First, the MF Global implosion is now reported to have left a $1.7 Billion hole in the capital base of a highly leveraged commodity and derivatives market.  MF Global was a primary dealer, one that had the unconditional trust of the exchange and other secondary commodity dealers.  It was a silent pillar of these markets.  The aftermath of their implosion, both in loss of capital and confidence, has only begun to unfold.  Commodity markets are no longer “safe” by normal standards.  This situation is best watched by your money at a distance.

Second, while Europe implodes, the US has been spending most of its time firming its position in Asia.  There has been speculation that the US is moving to aggressively devalue the dollar vis-à-vis the Yuan.  Will it be the 10:1 reverse split that we have speculated about here?  No one knows, but it would appear that the US Dollar will not serve as a reliable store of wealth in the short term.  Silver and Gold come to mind as viable substitutes as this drama plays out.

Occupiers take note of a Bolivian tactic of blocking major thoroughfares

Finally, It appears that the Occupy protesters are now wising up and using tactics which we call the Bolivian tactic, that of blocking major thoroughfares.  It is much more effective, not to mention exciting, than urban camping.  As a practical matter, if your livelihood in any way relies on a major thoroughfare being open in an area where the protests are growing, we suggest that short term contingency plans be considered.

These events and any pain they cause should be short term, maybe three to four months of adjustments, if they are allowed to simply run their course.  If the Government continues to intervene, they will plague us indefinitely.  We pray for the former and prepare for the later.

With that off our chest, we continue pondering life as we know it.  Our question today is:  Why does it seem that the worst morals seem to come out on top?  First, a glance at Isaiah:

And I will make boys their princes, and infants shall rule over them.  And the people will oppress one another, every one his fellow and every one his neighbor; the youth will be insolent to the elder, and the despised to the honorable,”  Isaiah 3:4-5

Have you ever complained about a politician?  The government?  How about your boss?  The current state of society?  If you haven’t, you are indeed a rarity in this day in age, for there is much complaining, and seemingly much to complain about.

How did we arrive at this, fellow taxpayer?  If democracy is supposed to deliver the cream of the crop in terms of leadership in the government, why does it seem that most politicians are the epitome of immoral liars?

This question was thrust upon us as we were reading the “Is there no shame” rant at zerohedge.com and came across the words “Hayek’s theory that the worst always rise to the top.”  We then perused Hayek’s theory in an excerpt from the “Road to Serfdom.”

In the section entitled “Why the Worst Get to the Top,” Hayek states that:

“There are strong reasons for believing that the worst features of the totalitarian systems are phenomena which totalitarianism is certain sooner or later to produce.

Just as the democratic statesman who sets out to plan economic life will soon be confronted with the alternative of either assuming dictatorial powers or abandoning his plans, so the totalitarian leader would soon have to choose between disregard of ordinary morals and failure. It is for this reason that the unscrupulous are likely to be more successful in a society tending toward totalitarianism. Who does not see this has not yet grasped the full width of the gulf which separates totalitarianism from the essentially individualist Western civilization.”

Suddenly, it all makes sense.  As man has generally chosen to pursue the Totalitarian, or what we call the Might Makes Right ideology, it would follow that those thrust into power should be among the most immoral, unscrupulous, human beings on the planet.

In summary, the Might Makes Right ideology unwittingly promotes the worst individuals to positions of power, as they are best suited to carry out the immoral and contradictory demands which are invariably made of the persons occupying positions of power in such a system.

Depressed?  Don’t be.  It doesn’t have to be this way.  More tomorrow.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for November 22, 2011

Copper Price per Lb: $3.34
Oil Price per Barrel:  $98.01

Corn Price per Bushel:  $5.98  
10 Yr US Treasury Bond:  1.95%
FED Target Rate:  0.08%  ON AUTOPILOT, THE FED IS DEAD!

Gold Price Per Ounce:  $1,700 PERMANENT UNCERTAINTY

MINT Perceived Target Rate*:  2.00%
Unemployment Rate:  9.0%
Inflation Rate (CPI):  -0.1%
Dow Jones Industrial Average:  12,096  

M1 Monetary Base:  $2,121,700,000,000 RED ALERT!!!  THE ANIMALS ARE LEAVING THE ZOO!!!
M2 Monetary Base:  $9,644,200,000,000 YIKES UP $1 Trillion in one year!!!!!!!