
SOAPBOX
ORATIONS...
This page is
offered as a public service to guest writers who wish to submit an
article on current events, blow off a little steam (tastefully
vented, of course), or enlighten others on a subject of interest,
religious or secular, with some relevance to the topics on this
web site. Submissions for this page should be sent to me at: miles@webenet.net.
Obviously, all articles are subject to discreet scrutiny and
editing, and those chosen for publication will be posted here
periodically.
----------------- 7.1.09------------
Surviving
Hyperinflation: An Update
by
Eric Englund
http://lewrockwell.com/englund/englund54.1.html
by Eric Englund
Recently by Eric Englund:
Ford Motor
Company, Goldman Sachs, the SEC, and the ‘New’ Wall Street


In the early
1980s, Harry E. Figgie, Jr. (the founder of Figgie International,
Inc.) became concerned that the United States’ government was
following the same destructive path that lead countries such as
Argentina, Bolivia, and Brazil into hyperinflationary economic
collapse. In the 1980s, each of these South American countries
were running massive annual deficits, were accumulating
unmanageable national debts, and each respectively had a central
bank creating money, out of thin air, at a reckless pace. In
looking at the frighteningly similar profligate behavior, on the
part of the U.S. Government, Mr. Figgie became concerned that
hyperinflation could emerge in the United States as well.
PARDON THE
INTERRUPTION
I wrote the
opening paragraph, and the balance of this essay, in January of
2004. Since then, the
national debt has grown from $6.9 trillion up to $11.4
trillion – an increase of about 65%. Uncle Sam’s
unfunded
liabilities now exceed $100 trillion. Per the Federal
Reserve’s own data, the United States’
monetary base has skyrocketed from $735 billion, in January of
2004, to over $1.7 trillion today. To believe that the paper
tickets in my wallet, Federal Reserve Notes, will somehow gain
value over time has always struck me as absurd. In my opinion, the
stage has been set for an explosion in the prices of everyday
goods and services. Economists Robert Murphy and Thorsten Polleit
have recently written essays (linked
here and
here) affirming my
trepidation. To be sure, I firmly believe tough economic times,
marred by harsh inflation, lie ahead of us.
AND NOW,
BACK TO THE ESSAY
As a
businessman and an entrepreneur, Harry Figgie was concerned that
his business enterprises may not survive if his management teams
were not prepared to operate under the unstable conditions wrought
by heavy inflation. Since little had been written about managing a
business under hyperinflationary conditions, Mr. Figgie initiated
a research project to find out what a business must do to survive
the ravages of inflation. So, in his own words, here is what he
decided to do:
As a result,
we initiated research of our own, and chose our target South
America – specifically Bolivia, Brazil and Argentina – as the
best available examples of economies suffering high inflation
rates.
We put
together a three-person team headed by Dr. Gerald Swanson, a
University of Arizona economist and director of the Academy for
Economic Education.
The team
went to South America four times over a two-year period to study
the development of inflation and its impact on businesses,
individuals and governments. They interviewed 80 leading bankers
and industrialists and a considerable number of ordinary
citizens throughout Argentina, Brazil and Bolivia.
As a result of
this research, Dr. Swanson wrote
The Hyperinflation Survival Guide: Strategies for American
Businesses; which was first printed in 1989. The superb
content of this book can be attributed to Mr. Figgie’s foresight
and to the outstanding research and writing of Dr. Swanson. What
follows are a brief "Austrian" perspective about this book and
then specific details regarding the book’s content.
AN AUSTRIAN
PERSPECTIVE
The
Hyperinflation Survival Guide: Strategies for American Businesses
is a book that provides sound business strategies for business
managers and entrepreneurs to implement when operating a business
under economic circumstances in which monetary calculation becomes
increasingly difficult due to a rapid decline in money’s
purchasing power. Although the term "monetary calculation" is not
found anywhere in this book, it is crucial to understand monetary
calculation is a method of thinking for a businessman. As the
extraordinary economist Ludwig von Mises explains in his magnum
opus
Human Action:
Monetary
calculation is the guiding star of action under the social
system of division of labor. It is the compass of the man
embarking upon production. He calculates in order to distinguish
the remunerative lines of production from the unprofitable ones,
those of which the sovereign consumers are likely to approve
from those which they are likely to disapprove. Every single
step of entrepreneurial activities is subject to scrutiny by
monetary calculation. The premeditation of planned action
becomes commercial precalculation of expected costs and expected
proceeds. The retrospective establishment of the outcome of past
action becomes accounting of profit and loss.
A tool
businessmen use to determine the success or failure of past
actions is a financial statement – which includes a balance sheet
and an income statement. It is important to understand that all
entries in the balance sheet and income statement are expressed in
terms of money. Under conditions in which money’s purchasing power
is stable, a businessman can directly correlate whether his
company’s capital base (i.e. the company’s net worth as reflected
in the balance sheet) is expanding or contracting depending upon
if the company turned a profit or made a loss. Such monetary
calculation assists a businessman in deciding to maintain or
change a business plan based upon satisfying the ever-sovereign
consumer.
But what
happens to monetary calculation under conditions of inflation? As
Murray N. Rothbard explains in his fabulous book
Man, Economy, and State, businessmen may be "tricked" into
making poor decisions thus causing consumption of capital:
…the
inflationary process inherently yields a purchasing-power profit
to the businessman, since he purchases factors and sells them at
a later time when all prices are higher. The businessman may
thus keep abreast of the price increases (we are exempting from
variations in price increases the terms-of-trade component),
neither losing nor gaining from the inflation. But business
accounting is traditionally geared to a world where the value of
the monetary unit is stable. Capital goods purchased are entered
in the asset column "at cost," i.e., at the price paid for them.
When the firm later sells the product, the extra inflationary
gain is not really a gain at all; for it must be absorbed in
purchasing the replaced capital good at a higher price.
Inflation leads him to believe that he has gained extra profits
when he is just able to replace capital. Hence, he will
undoubtedly be tempted to consume out of these profits and
thereby unwittingly consume capital as well. Thus, inflation
tends at once to repress saving-investment and to cause
consumption of capital.
Indeed,
inflation can lead to entrepreneurial error and, thus, to business
failure.
SPECIFICS
FROM THE BOOK
The
Hyperinflation Survival Guide provides excellent strategies
for businessmen to adopt and act upon should hyperinflation
emerge. Although this book is geared more toward owners/managers
of manufacturing companies, operating under inflationary
conditions, any businessman (and any individual) can garner sound
advice from this insightful book. The four chapters in this book
cover financial management, marketing strategies, manufacturing
decisions, and industrial relations.
Chapter one of
this book – titled "Financial Management" – can be summed up as
follows: "Cash management is the difference between profits and
bankruptcy. The single fact that influences every decision is:
Time eats money." The following list highlights a few of the
important financial-management issues covered in this chapter:
-
Make
absolutely certain your managers understand the time value of
money.
-
Never allow
your cash to remain idle.
-
Good cash
management can provide a major source of profit, while poor cash
management can destroy a company in a matter of months.
-
Be prepared
to convert dollars into a stable foreign currency.
-
Be aware
that the stock market may become an uncertain source of capital.
-
Be prepared
to maintain more than one set of books.
-
Inventory
valuation should be based on NIFO (next in first out) rather
than LIFO.
-
Develop an
appropriate inflationary adjustment for capital replacement or
the value of your capital will disappear.
Chapter two is
titled "Marketing Strategies." Pertaining to the "4Ps" of
marketing (price, promotion, place, and product), this book
concentrates on pricing and product.
Since
government intervention and regulation inevitably become more
oppressive during bouts of high inflation, it is important for
businesses to sell products with the largest profit margins. As
Dr. Swanson points out:
A fact of
life in a hyperinflationary economy is the disappearance of
products whose controlled price does not cover the cost of
production. In Brazil, for example, dairy products such as milk,
eggs and cheese became unavailable when the regulated price was
set below their production cost.
Likewise, in
the United States, high volume products with extensive
competition – characteristic of many consumer products – may be
the first to disappear should inflation begin to rise, because
they tend to have low profit margins.
With respect
to pricing, the book conveys that pricing "…policies undergo a
dramatic transformation during hyperinflation. Fluid pricing
becomes an absolute necessity, and prices must change frequently
and sharply to accurately reflect the impact of inflation. True
costs become increasingly difficult to track, even as the need to
do so grows more important."
For Americans,
it is hard to imagine products disappearing from the marketplace
let alone having to cope with hyperinflation. Just imagine the
nightmare Bolivian businessmen went through, in 1985, when
inflation hit 50,000% annualized. Upward price adjustments would
have to be made by the hour. These upward adjustments accumulate
to the point of seeming absurd. For example, under 50,000%
inflation, a $25 necktie would cost $12,525 one year later.
In chapter 3
(titled "Manufacturing Decisions"), Dr. Swanson emphasizes that
management must be flexible and innovative. Corporate survival,
furthermore, may require radical decisions. For example, during
"…periods of high inflation, manufacturing operations are
particularly hard hit. In fact, in some extreme cases in South
America, corporate attempts to survive have led some companies to
shut down their manufacturing operations in favor of speculation,
which can be a more profitable use of capital." The cold reality
here is that the rates of return on speculating in commodities and
currencies, under conditions of severe inflation, may exceed the
rates of return on capital projects. Correspondingly, this means
laborers will lose their jobs.
Other
important points, covered in this chapter, include the following:
-
Anticipate
that your purchasing department will assume a more important
role in the long-run survival of your firm.
-
Be aware
that hyperinflation creates increased opportunities for
corruption.
-
Effective
cost control requires that you develop methods for estimating
your internal rate of inflation.
-
Anticipate
difficulty in maintaining capital expenditure programs.
Chapter 4 of
this book is titled "Industrial Relations." It could just as
easily be titled "Employee Relations." As Dr. Swanson and his team
discovered in South America, the impact of hyperinflation on wages
and benefits was stunning. For instance, "…Brazilian employees who
were not given raises in the first three months of 1988 watched
their buying power plummet 64 percent. Even worse was the spring
of 1985, when Bolivians saw their real income drop 90 percent in
only three months." Such bouts of inflation become especially
difficult for businessmen to cope with as inflation is inflicted
upon society by a government’s reckless monetary creation (out of
thin air) while, in turn, government regulations – for the alleged
purpose of controlling inflation – prevent employers from granting
raises to employees. Employers, unfortunately, take the brunt of
the blame for the declining living standards (that employees
experience during bouts of severe inflation) when government is
the real culprit.
As standards
of living decline, Dr. Swanson found that "…individuals tend to
seek the support of a group to represent them in order to survive
constantly rising prices." He further articulated:
This is
certainly true in Bolivia, Brazil and Argentina, where the union
movement is very strong in both the public and private sectors.
Some South American business leaders go so far as to complain
that union leaders actually use hyperinflation to their own
advantage, recognizing it as a major source of their power.
Because wages continually lag behind rising prices during
hyperinflation, there is a near-constant need for negotiations,
as union members press their leaders to push for higher wages.
Other notable
labor-relations issues covered in this book are summarized below:
-
Labor
relations staffs should be prepared to face stronger unions and
virtually continuous negotiations.
-
There is a
high likelihood that wages will at some point be frozen, and
labor will apply pressure on management to circumvent controls.
-
Prepare to
shorten pay periods.
-
Anticipate
morale problems among middle management, which often bears the
greatest burden during hyperinflation.
-
Consider the
type of index you will use for cost-of-living adjustments, and
be prepared to make adjustments often.
-
Fringe
benefits must be adjusted to reflect inflation or they can
disappear.
This book’s
appendix provides a nice bonus as it covers the disastrous results
of the wage and price controls President Nixon implemented to
"combat" the United States’ 4.7% inflation rate and its 5.8%
unemployment rate. Two of the most notable actions President Nixon
undertook on August 15, 1971 included an immediate 90-day freeze
on wages, prices, salaries and rents and of course, the
reprehensible floating of the dollar; by severing the last vestige
of the dollar’s linkage to gold. For a president to assert that
severing the dollar’s link to gold will help reduce inflation
completely defies logic. In reality, what President Nixon
"accomplished" was to enable the federal government to create
money without limit. How such an irresponsible action can be
construed to be anti-inflationary is a sad testimony to the
economic illiteracy of the American populace.
To buttress
the point, about economic illiteracy, here is an excerpt from this
book’s appendix:
Domestic
reaction to Nixon’s proposal was overwhelmingly positive.
Leaders of the nation’s corporate giants, believing that some
sort of action was overdue, responded with general enthusiasm,
and opinion polls showed broad support among the populace.
Financial
markets reacted with unprecedented gains, as trading on the New
York Stock Exchange hit a record 31.72 million shares, and the
Dow Jones Industrial Average set a one-day record by climbing 33
points. Bond prices also rose sharply in heavy trading…
In all,
President Nixon implemented four phases of wage and price
controls, with the final phase ending in April of 1974; and the
results were predictably terrible. There were, for example,
shortages of beef and textiles. Prices rose, moreover, at an
average annual rate of 6 percent while the controls were in place,
yet in the eight months following the end of Phase IV, prices
climbed at an annualized rate of over 12 percent.
CONCLUSION
Of the books
published regarding hyperinflation, this may be the only one that
provides effective strategies for operating a business under
conditions of a rapidly depreciating currency. To reiterate,
The Hyperinflation Survival Guide: Strategies for American
Businesses was written by Dr. Gerald Swanson – an
associate professor of economics at the University of Arizona.
Harry E. Figgie, Jr. sponsored the research and the original
production of this book. As it was originally printed in 1989, it
was way ahead of its time. This, however, does not change the fact
that Dr. Swanson’s book will prove to be an excellent resource for
businessmen and individuals once the Federal Reserve's destruction
of the U.S. dollar enters its terminal stage.
Let me close
with a little bit of sobering humor:
There are
10^11 stars in the galaxy. That used to be a huge number. But
it's only a hundred billion. It's less than the national
deficit! We used to call them astronomical numbers. Now we
should call them economical numbers.
~ Richard Feynman (1918–1988)
June 29, 2009
Eric Englund [send
him mail],
who has an
MBA from Boise State University, lives in the state of Oregon. He
is the publisher of
The Hyperinflation Survival Guide by Dr. Gerald Swanson.
You are invited to visit his
website.
Copyright ©
2009 Eric Englund
-----------------
http://www.321gold.com/editorials/mathid/mathid101508.html
It is Time
Sam Mathid
Oct 15, 2008
What is beyond the
collapse?
The construction of
the collapse was loosely as thus:
-
Governments
inflated their currencies.
-
Malinvestment
resulted
-
To cope with the
problems of malinvestment, governments inflated
their currencies more.
-
Huge
malinvestments resulted.
-
To cope with the
problems of huge malinvestments governments
inflated their currencies hugely.
-
Currencies
utterly collapsed (still playing out).
The feeble
construction known as the world economy has been
held together with the glue of lies and pathetic
conceits such as:
-
Pieces of paper
printed by governments, and not backed by
anything of value, could successfully be used
instead of real money.
-
Wealth creation
could be separated from production.
-
The more control
government took of the economy, the stronger the
economy would be.
-
The
disintegration of the moral, spiritual and
intellectual fabric of the western world had
nothing to do with governments control of the
economies.
I have had
readers make the point that if the whole edifice
was built only on an illusion of wealth creation,
then how come there was so much prosperity for the
last few decades? The answer to that is horribly
simple. We expropriated and wasted not only such
real wealth (production) as there has been in the
present times, but we wasted the accumulated
wealth of all the preceding generations, and
finally (and most disgusting of all) we then went
into vast debt and consumed the wealth of future
generations.
The whole lot,
every last nickel, has either been doled out in
the gutter of political corruption, or flushed
down Wall Street's slimy drain; all abetted by a
malign, mumbo-jumbo nonsense called Keynesian
economics. Nowhere is there reference to prior
criminality and stupidity on such a grand scale.
There is no historical precedent.
For three
generations the public have been lied to and
lulled into a false sense of security by the
media, by the education system and by governments.
Now, more than
ever, there is a desperate need for the truth. The
restoration of hope for the future can only begin
with the truth. A foundation of truth is the
bedrock of any decent society, which is why the
enemies of freedom seek so desperately to suppress
it, and why sane people value the virtue of truth
so highly.
The truth is that
the current system has become corrupted beyond
possibility of repair, and needs to be allowed to
collapse. It will do so anyway, whether we 'allow'
it or not. It must collapse, so that something
more attuned to the genuine needs of people can be
created. Destruction must often precede
creation... slums have to be razed before fine
living quarters can be constructed.
When a system is
corrupt it will attract only corrupt people and
only the corrupt will flourish. We have provided
history with a wonderful example of that. Look at
the legislators who sit in not only the American
Congress, but in the UK and Australian
parliaments, and in governments all across the
western world. Only an utterly corrupt system
could elevate and reward such second-rate people.
As of this morning
I see that the DOW rose almost 1000 points
overnight in the US. This on the promise of
politicians taking firm action. Looking to
politicians to effect a solution for this
situation is as futile as poking around in a
parrot's entrails in an attempt to divine
Saturday's winner at Randwick. Bush claims that it
is an effort to preserve the free market. The free
market needs no help, it needs less hindrance. It
is government 'help' that has killed the economy.
As Reagan once said: "the nine most scary words in
the English language are 'I'm from the government
and I'm here to help.' It's actually eleven words,
but what's a 20% error with any government figure.
Look at the
criminals who infest Wall Street, the Federal
Reserve and the Treasury. How foolish and shifty
they look as they sit blinking in front of the
television cameras struggling to provide coherent
answers to simple questions; and yes, on one level
it is laughable, but that is our money and wealth
that has been destroyed. That is the material
present and future of our families that has been
stolen.
Our education
system is run by people whose job is to ensure
that children attain adulthood without gaining any
dangerous ideas about personal integrity or
individual responsibility. Our media no longer
even pretends to publish the news, they are merely
organs of propaganda for the government, and for
those vast corporations allied to government. It
is time to be done with all our institutions. No
part of what we have is worth saving. The
corruption has penetrated and permeated from the
very top to the very bottom. Society has been
rotted down to the last point of resistance... the
core level of the family and individual. The
institutions have become a part of the problem,
not the solution. The solutions can now only be at
the level of the family and the individual.
We need a new
system which allows people (who, despite all
inducements to be otherwise, are mostly honest,
hard working and decent) to produce and prosper. A
system that allows everyone the rewards of their
efforts. A system that keeps government locked
away, not only by Constitutionally binding laws
(we tried that), but by harsh and prescribed
penalties for the flouting of those laws.
We need a system
that keeps government completely out of the
economy. The first great breakthrough in the
establishment of boundaries between government and
people was the separation of the State from
Religion, the second will be the separation of the
State from Money and the Economy.
There is no place
for government in monetary or financial dealings
between free people. No matter the occasional
foibles and failings of individuals, people will
always be as saints compared to the systemized
criminality that infests our corridors of power.
When government pokes its dirty and self-serving
legislation into the economic pie, there is an
immediate corruption of that pie. The pie then
gradually deteriorates until eventually and
inevitably the economic pie becomes so rotten that
it collapses. That is the point where we now find
ourselves.
Eventually people
are going to find out how it is that they have
been ripped off so grossly. At that point the
expression of the voice of the people will move
from the sedateness of the ballot box to the get
down and dirty level of the streets. What is
important is that people's wrath is directed
toward the right target. There are many easy yet
wrong targets such as neighbours, other races,
immigrants, religions etc.
The right target is
governments. The criminality and breathtaking
greed of Bankers and Wall Street, that has brought
the whole western world to its knees, could never
have happened without the legislative complicity
of government. Our western system of governments,
not just the American system, are rotten to the
core. Definitely the American system is more
corrupt than any other, but that is only a matter
of degree, not of standard.
It is time for a
revolution, but not just more of the same old
mindless and horrendous violence of the 20th
Century, with its pointless wars. Another century
spent fighting wars to determine which is the best
form of total government control of monetary and
fiscal affairs would likely see the end of the
human race. A pox on all of those governments. The
original Constitution of the United States of
America would be a good starting point, but with
changes sufficient to ensure that the errors of
the past could not again happen.
It is time for the
second American revolution. America is the only
place with the tradition of freedom and the
intellectual underpinning (not to mention the
arms) to make it happen. There would be many
willing and happy to come and help. There must
again be a beacon for freedom in the world. The
fight is not just for the future of America, but
for the future of the world.
Many in the
American intelligence and military, from the top
to the bottom, would renege on their allegiance to
the government in an instant in the event of a
revolution. They are deeply troubled by the nature
of the system that they serve. Indeed, it is
possible that there are very few who would fight
to keep the current elitist system intact.
Bush has already
deployed the First Brigade of the Third Infantry
Division within mainland America. More troops are
to follow. Will these troops remain reliable and
true for the elites against their own countrymen?
Hard to say... especially for the elites. Bush's
striking down of Posse Comitatus, which disallowed
the use of the US military on home soil, is a
double edged sword. It is a decision and a
precedent that could come back to haunt him.
It would be easy to
argue the merits of a military coup in America.
The arrest of George Bush, Dick Cheney, Hank
Paulson, Robert Rubin et al with the dissolution
of Congress, followed by an announcement of
immediate criminal investigations into the whole
upper hierarchy of the political and financial
establishment would, after the initial shock had
subsided, have massive public support.
Colin Powell
sitting in the White House and presiding over a
new Constitutional Convention would do a lot to
reassure Americans and the rest of the world that
America was serious about addressing its problems.
Maybe the military are the one institution that
could redeem themselves.
The fortresses of
our ruling elites around the world were almost
impregnable during the complacency of the past few
decades. That complacency, born of the illusion of
prosperity, is about to be replaced by a public
rage, born of the reality of an imposed poverty.
The time for truth is now, and the truth is that
it is time to bring down the fascist and socialist
elites and their Keynesian economic cronies who
have destroyed so much and so many.
Is my message 'doomy'?
Absolutely not, it is a message of hope and
salvation. Could poverty, violence, war, hatred,
sickness, moral rot and spiritual oblivion become
worse in this century than it was in the last?
Only if we allow a continuation of the same
corrupt monetary system. We are in a vast debtor's
prison and the guards are the very people who
created the monetary system that ensured the
financial ruin. Not only is the message hopeful,
but throwing these criminal and pompous bums into
jail, or out into the street, would be a lot of
fun.
Sam Mathid
|
~~~~~~~~~~~~~~
"In the first place, we should insist that if the
immigrant who comes here in good faith becomes an American and assimilates
himself to us, he shall be treated on an exact equality with everyone else, for
it is an outrage to discriminate against any such man because of creed, or
birthplace, or origin. But this is predicated upon the person's becoming in
every facet an American, and nothing but an American... There can be no divided
allegiance here. Any man who says he is an American, but something else also,
isn't an American at all. We have room for but one flag, the American flag... We
have room for but one language here, and that is the English language... and we
have room for but one sole loyalty and that is a loyalty to the American
people."
Theodore Roosevelt 1907
~~~~~~~~~~~~~~~~~
THE BRAND OF SHAME AND INFAMY
by J. R. Nyquist
http://www.financialsense.com/stormw...2007/0615.html
"Drawing the lesson, they made the great turn to the long strategy
of indirect approach. Western Europe and North America would be
slowly isolated, cut off from the life-giving countryside, reduced
finally to withering islands in an alien, swelling sea. They
would, when the moment came for the direct strike, collapse at a
few sharp blows." - James Burnham, The War We Are In
"Our society isn't a society anymore," wrote Anna Politkovskaya in
her Russian Diary. "It is a collection of windowless, isolated
concrete cells.." Russia has returned to the overt despotism of a
counterintelligence regime, and the West has returned to Munich,
to the ignominy of 1938, to appeasement and cowardly retreat. "I
really feel as a Cassandra who speaks to the wind," wrote Oriana
Fallaci in her Post-Script to The Force of Reason. "Sounding off
at protest meetings has become virtually useless," wrote
Politkovskaya, "mere preaching to the converted; those who share
your views already know the situation, so why keep telling them
about it?"
We have reached a point in history that cannot be otherwise. The
centuries have run their course, and we are at the end of one
civilization, not yet knowing whether another civilization, or a
span of barbarism, is to follow. The dying civilization's ears and
eyes are shut to courageous voices, like those of Fallaci and
Politkovskaya. We pat ourselves on the back, pointing to our
happiness and freedom. But if we are happy and free, then why are
so many anti-depressants prescribed? And why are so many
Westerners adopting totalitarian "ideals" (like those of extreme
environmentalism, socialism and anti-Americanism)? One might ask
why the Russians, supposedly freed from Communism, have willingly
accepted a KGB dictatorship? Many reasons might be given, of
course, and many excuses. The mass scale of modern society dwarfs
the individual as it dehumanizes through automation and
rationalization. It is easy to feel helpless. It is easy to give
up. The machinery of modern life homogenizes the human mind,
shrivels our independence as it carries our dignity into the swamp
of indiscriminate equality. In the end we turn coward, buckle
under, and blame America or Israel for the world's woes. We join
the global totalitarian chorus - the wave of the future.
Pericles said: "The secret of happiness is freedom, and the secret
of freedom is courage." In that case, the rise of cowardice (and
its cult of appeasement) signifies the decline of freedom.
Ironically, it is a decline in the midst of plenty. The visionary
of our day, who speaks truth to power, speaks to a particular kind
of power; that is, to the corrupting power of the shopping mall
regime and its comforting illusions. "People often tell me I am a
pessimist," wrote Politkovskaya shortly before an assassin's
bullet ended her life last year. "I see everything," she added,
"and that is the whole problem." To see everything is to recognize
that we live under the Big Lie. "I do not believe in the
fraudulence of Moderate Islam," wrote Oriana Fallaci. "Islam is
the Koran," she added. "Nothing but the Koran. And the Koran is
the Mein Kampf of a religion which has always aimed to eliminate
the others." Reading these words I cannot help admiring these
courageous women and their readiness to tell the truth. It is
against the martyred Politkovskaya, and against the persecuted
Fallaci that we hear the affirmation and repetition of nonsense,
enthroned and empowered, administrating and legislating on the
basis of one falsehood after another. "Russia is not an enemy,"
said President George W. Bush last week. "There needs to be no
military response because we're not at war with Russia. Russia is
not a threat." This is spoken by the same U. S. leader who has
characterized Islam as "a religion of peace." Failing to recognize
and account for his real enemies, Bush tried to build democracy in
Iraq, and now he has been discredited. His discreditable critics
are tumbling over one another to take the helm. As Fallaci's
explained: "the deaf remained deaf, the blind remained blind, and
both of them ended up with bearing on their foreheads what in The
Apocalypse I call The Brand of Shame and Infamy."
The whole world stands to be engulfed. The destruction, when it is
unleashed, will be unprecedented. The totalitarians in Russia,
China, Iran and the Arab world are preparing for war. Now that
Bush's position is collapsing and the Party of Outright
Appeasement has begun its reign, the enemies of freedom see their
chance. Cowardice and stupidity have conspired, and the result is
"opportunity." Western progress has finally given the totalitarian
regimes a generation of "last men," about whom Friedrich Nietzsche
once wrote: "The earth hath become small, and on it there hoppeth
the last man who maketh everything small." The "last man" comes at
the end, when civilization begins to die. And indeed, the Western
democracies are dying. I am reminded of Titus Livius's description
of Rome's descent into despotism as "the dark dawning of our
modern day when we can neither endure our vices nor face the
remedies needed to cure them." We congratulate ourselves on the
interest-group demagogy that produces policy in the West, throwing
up words like "democracy" and "freedom" when the reality of the
situation is better described by words like "anarchy" and
"licentiousness."
Oriana Fallaci referred scathingly to the West's "inanimate
democracies" and "inertly democratic regimes." These, she said,
were governed by the cowardice of the democratic mob. Under this
system, nobody tells you to obey the party line. The men in
leather jackets don't come for you in the middle of the night.
They don't put you before a firing squad or employ torture to
extract a confession. They don't violate your rights. You can even
vote and run for office. But you will never be elected, followed
or respected, because the instinct of a cowardly multitude finds
comfort in calling you a "lunatic," an "outlaw," thereby
condemning you to what Fallaci called a "Civic Death." She
described this death as a condition in which nobody will listen to
you, and even "those who think like you will desert you."
Everything can be stated, said Fallaci, "but the truth." We no
longer have the courage to recognize and accept hard facts. Even
those of us who know better are deserters. "Everything can be
spread except the thinking which reveals the truth. Because the
truth inspires fear. Because in reading or hearing the truth most
people surrender to fear.." Oriana Fallaci sounded an alarm to all
of Europe. The Muslims have crashed the gate and the citadel of
the West is being overrun. But instead of Europe's intellectuals
rallying to her passionate call, a famous Italian journalist said
to her: "I can support you no longer." Fallaci asked him why, and
he answered: "Because people don't talk to me anymore, don't
invite me to dinner anymore."
Do we understand how this works? Fallaci calls it the wicked
infection of a new "autochthonous facism." Its first germ-carriers
are the presumed educators of the Western world. "The sordid and
vile plague also propagates through newspapers, TV, Radio." She is
talking about an intellectual or mental contagion, described over
100 years ago by Gustave Le Bon. "Mental contagion constitutes a
psychological phenomenon of which the result is involuntary
acceptance of certain opinions and beliefs," wrote Le Bon. It
seems that emotions propagate themselves in the same way that
bacteria and viruses propagate. If mankind's spiritual hygiene is
poor, if cowardice and envy have made a kind of breeding ground,
then ideological poisons and disinformation are encouraged to
multiply. Furthermore, today's mass media is the perfect tool for
spreading this contagion far and wide to a vulnerable and weakened
culture. "The more the means of communication are multiplied,"
wrote Le Bon, "the more people's will is reached and infected."
The modern mass media tends to foster a mass-produced
consciousness subject to the vagaries of fashion and wishful
thinking. In fact, this mass consciousness, stupid and infantile
in itself, has become the ruling principle of the West's "inert
democracies." This is the fashion of the Last Man. Take a poll.
Find the parade and get in front. The public is always "right,"
even though the public is a monstrous nullity. And since that
nullity has become weak and soft, it is impossible to raise
questions touching on civil defense, war mobilization, closing the
borders, restricting trade, expelling Muslim aliens, placing
Communists under surveillance or arresting seditious citizens.
None of these measures are acceptable because each promises some
harm to the general comfort and to the shopping mall regime.
The United States, like Europe, won't defend itself properly. We
will not stockpile the necessary foodstuffs or build the necessary
underground bunkers. We refuse to stop enemy aliens from moving
across our borders. We refuse to see the truth of our situation.
We turn our backs on the Cassandras of our day. "Many seem not to
care," wrote Politkovskaya. She warned that the Soviet Union had
returned to Russia. The old wickedness had returned. Has this
registered on the West? With regard to the Islamic threat, Fallaci
wrote to America: "Dear friends: it is immigration, not terrorism,
[that is] the Trojan Horse which has penetrated the West and
transformed Europe into Eurabia."
The honest man knows what follows. The coward warms himself on a
bodyguard of lies.
© 2007 Jeffrey R. Nyquist
~~~~~~~~~~~~~~~~~~~
SHOOT RIOTERS ON SIGHT
http://www.newswithviews.com/Duke/selwyn23.htm
by Selwyn Duke
November 10, 2005
NewsWithViews.com
As riots spread throughout France like wildfires left
unattended by those afraid to use water, a sane person has to be struck by the
impotence of modern Western governments. Whether it's Moslem enclaves in France,
New Orleans in the wake of Katrina, or South Central Los Angeles after the
Rodney King verdict, it seems that the new paradigm involves letting wicked
flames burn themselves out, only doused at times by the innocent blood of
victims who, in a most shameful abdication of governmental duty, are left to
twist in the wind by the Neros who masquerade as statesmen.
As to the unrest in France, I have read headlines stating
that the authorities "can't" stop the violence. "Can't" is an interesting choice
of a word. A better one would be "won't." Because, I assure you, I could have
stopped the riots on the first day.
The solution: shoot rioters on sight.
Uncompassionate, say you? Okay, let's talk about compassion.
Some contemptible rioters in France doused a woman, who was
in her fifties and on crutches, with some kind of liquid and set her alight.
She's now hospitalized with severe burns.
Sixty-one-year-old Jean-Jacques Le Chenadec died after being
beaten into a coma by an attacker.
There have now been scores of casualties amidst the violence,
and non-Moslem people cannot enter the areas of unrest (I wonder, will this
targeting of non-Moslems be labeled hate-crime?).
More than five-thousand cars and dozens of buildings -
including schools and churches - have been burned. By the way, could you imagine
the hue and cry if a Christian mob had torched mosques?
In the aftermath of Hurricane Katrina, some people were raped
and/or murdered, and roving bands of thugs fired on emergency services vehicles
and aircraft, hampering rescue efforts and decreasing the chances that those in
dire straits would receive life-saving aid. In France, too, there were reports
of an attack on a hospital and an ambulance whose transit was impeded.
During the Rodney King riots, Reginald Denny halted his
tractor-trailer truck upon encountering a group of rioters so as to avoid
running them over. The thanks he got was to be beaten to within an inch of his
life, receiving blows that broke more than ninety bones in his face.
Incidentally, the criminal, Rodney King, was awarded 3.8 million dollars of the
taxpayers' money for his lumps and bumps. Denny came away with a broken body.
Do you see a pattern here? What do you think accounts for
this ubiquitous governmental failure to act swiftly and proportionately in the
face of mayhem? What is to blame for this tolerance of evil? I can encapsulate
it in one word: liberalism. Yes, liberalism. There was a time when riots would
have been quelled with a firm hand, nipping the problem in the bud. But that was
in bygone days, before decades of liberalism elevated the villainous to victim
status and cast true victims as unavoidable collateral damage.
Now there's an excuse for every riot, often attended by a
term adopted to describe the justification. In Los Angeles it was "black rage,"
and now in France it's "disaffected youth." Yes, people may not be held
accountable because they're victims of their "socialization" or of
discrimination or the system or ethnocentrism, or, whatever other
rationalization du jour is conjured up by those who live in a liberal
fantasy-world built on self-delusion. And never do they ask, perhaps during a
rare, lucid moment, the obvious question. If everyone is a victim, who is the
victimizer?
It should surprise no one that I segued right from compassion
into liberalism, since the latter is the direct cause of our current paralysis
by misanalysis. It is why we embrace the bad chess player,
never-seeing-more-than-one-move-ahead strategy that precludes us from
extinguishing a fire before it grows into a raging inferno. The fact of the
matter is that when those bent on doing evil find no opposition, they become
emboldened and others of their ilk join the fray. This is why riots that started
in suburbs of Paris have now, like a metastasizing cancer, spread to other parts
of the country.
Of course, they could have been ended at the get-go with a
few well-placed salvos and a credible threat that continued violence would be
met with of more of the same. Not that I'm proposing a bloodbath, mind you. Yes,
a few miscreants would have been shot, but the rest of the vermin would have
gone scurrying back into their holes and lived to complain another day.
Instead, because of gross governmental negligence during all
the tragedies I mentioned, those few criminals emerged unscathed and innocent
people were hurt and killed. And don't forget the women violated, the property
destroyed, and the intensifying of the atmosphere that tolerates this barbarity,
which increases the chances we'll see more of it. Oh, but I forgot, we have to
be compassionate.
Or, to be precise, liberal, counterfeit compassion is what's
expected of us. Liberals observe social breakdown from a distance, safely
ensconced in their ivory towers, and would have us believe that they feel sorry
for the poor, tormented souls who rage against "oppressors." But as these
pseudo-sophisticates pontificate about the plight of criminals, blind to the
fact that their mistakes of comission created the powder keg as much as their
mistakes of omission lit the fuse, where is their compassion for the ravagers'
innocent victims? Compassion, my foot. Liberals are simply detached,
cold-hearted menaces to society.
Of course, liberals will tell us that we just have to
understand the hand that life has dealt to these downtrodden wretches, who, in
the case of the Moslems in France, are sometimes coordinating their attacks via
cellphone or email. It really gives new meaning to Thoreau's line, "Give me the
poverty that enjoys true wealth."
Understand them? No, liberals, you have to understand them
and they have to understand us. You have to understand that in every society
there are people who are bent on doing evil. Such ne'er do wells will seize upon
any opportunity to enrich or benefit themselves or wreak havoc, and you can no
more mollify them than Chamberlain could appease Hitler. Perhaps you should
study Erikson's stages of psychosocial development or just read Lord of the
Flies, and then, maybe, just possibly, a little light bulb will go off in your
cranium.
As for the rioting swine, they have to understand that if
they dare raise a menacing fist to their fellow man, they'll promptly be struck
by a Draconian hand. That's the language they understand.
Of course, this is all just part of a systemic problem. It's
just the same as when liberal school administrators tell a bullied child that
they can't bring his tormentors to heel, so he should stay home and be relegated
to homebound tutelage. Yes, place the onus on the innocent and let the wicked
hold sway.
And so it was during Hurricane Katrina. What was the response
of our feckless government to the pillaging miscreants who preyed on the
vulnerable? New Orleans seized the guns of law-abiding citizens!
So, let's get this straight: first the government abdicated
its responsibility to protect its people, being too cowed by
political-correctness to take necessary action. Then, outrageously,
unconscionably, it declawed the good people, leaving them defenseless and at the
mercy of predators who roamed about with relative impunity. Ah, the fruits of
liberalism: authoritarianism for the good and anarchy for the bad. It's a deadly
combination.
It's much the same in France, with her NATO (No action - talk
only) government. But talk is cheap, as proven by President Jacques Chirac who
warned,
"An escalation of disrespectful behavior would lead to a
dangerous situation . . . there can be no area existing outside the law [in
France]."
Here's a clue, Chirac, it is a dangerous situation, and these
areas are existing outside the law at this time. But Chirac is the
quintessential, effete, irresponsible liberal leader, as lacking in intestinal
fortitude as he is in integrity. His tough talk rings hollow. He has done little
of substance to protect his people as of this writing and, since he and his
fellow statists have largely disarmed the French, they're easy prey.
Then there is the talk that isn't merely cheap, but stupid.
In the face of violence of insurrection proportions, some are propounding
politically-correct theories and engaging in self-flagellation, instead of
demanding that the government lock and load. Chirac took the cowardly lead as he
obsequiously opined,
"[France] has not done everything possible for these youths,
supported them so they feel understood, heard and respected."
Not to be outdone, Prime Minister Dominique de Villepin
advocated a 35.5 billion-dollar handout and said,
"We must offer them hope and a future."
Yeah, the "disaffected youth" need a few more cellphones and
computers so they all can become high-tech Jihadists.
Listen, the time for Akhmed to be transformed into a moral
being was when he was a wee lad at his mother's knee. But when he's grown and
gruesome and charging you with an axe, it's time to shoot. Liberals always
prescribe an ounce of prevention when it's time for a pound of cure. It's all
quite pathetic.
So, I have as message. Pusillanimity, thy name is liberal
politician. Liberal politician, you are weak. You are entropy in action. Your
ranks are filled with feminized capons and masculinized, clucking hens, leaving
you only to ponder which sorry set makes for better men. And if you knew what
masculinity was, what femininity was - if you even believed that such qualities
were a reflection of the divine and not merely social constructs - you would
have a prayer of reclaiming your manhood and resurrecting virtue in yourself at
this, the eleventh hour. Alas, though, lost in a sea of confusion and androgyny
you've become a pathetic creature, possessing neither Christian fortitude nor
even pagan ferocity. Yet, you indulge the delusion that you're fit to perpetuate
civilization? You fancy yourself capable to run a nation? The only thing you can
run is your mouth.
I also know that when you lose a loved one to the fangs of a
viper whose base instincts were loosed upon the world by the permissive
environment you cultivated, even this pain won't inspire you to look inwards.
Nay, you will blame some infernal bugaboo. It will be privation caused by
trickle-down economics, a paucity of gun-control laws, the destruction of
cultural identity, unequal education or disparities in caste and station, the
pangs of teenage or black rage, oppressive summer heat or the persecuted Moslem
street. All those "truths" that relativists learn in sociology class and embrace
as self-evident will crystallize in your mind, causing you to cry out to the
heavens for more of the disease and the smiting of those who, unbeknownst to
you, hold the cure.
Sadly, the Western world is replete with governments that do
a lot of what they shouldn't and precious little of what they should. Government
isn't supposed to be dispensing condoms and teaching children about sex,
offering free tattoo-removal programs, coercively extracting money from citizens
for charitable endeavors, building 250 million dollar bridges to nowhere, or
mandating that you must hire cross-dressers. A legitimate role of government,
though, is to secure domestic tranquility. If the nanny state regimes in
existence can't even do that, they should go the way of the Dodo. And I say
goodbye and good riddance.
There was a woman on crutches who, because of liberal
compassion, now has another great cross to bear. And the family of Jean-Jacques
Le Chenadec will see him no more. Compassion means protecting the good, not
tolerating the iniquitous. Liberals, you have been found wanting and are
enablers of evil. The blood of innocents is on your hands.
© 2005 Selwyn Duke - All Rights Reserved
----------------------------------------------------------------
Selwyn Duke lives in Westchester County, New York. He's a
tennis professional, internet entrepreneur and writer whose works have appeared
on various sites on the Internet, including Intellectual Conservative,
nenewamerica.us (Alan Keyes) and Mensnet. Selwyn has traveled extensively in his
life, visiting exotic locales such as India, Morocco and Algeria and quite a
number of other countries while playing the international tennis circuit.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
"Insanity in individuals is something rare - but in groups,
parties, nations and epochs, it is the rule."
--Friedrich Nietzsche
DON'T BEAT YOURSELF UP WORRYING --
JUST PREPARE!
"All you can do is all you can do, and all you can do is enough;
the rest is God's grace."
- Christos
"Once a government resorts to terror against its own population
to get what it wants, it must keep using terror against its own
population to get what it wants. A government that terrorizes its
own people can never stop. If such a government ever lets the fear
subside and rational thought return to the populace,
that government is finished."
- Michael Rivero
"Mankind must put an end to war,
or war will put an end to mankind"
- John F. Kennedy
"In a time of universal deceit, telling the
truth becomes a revolutionary act."
- George Orwell
"If man will only realize that it is unmanly to obey laws that are
unjust,
no man's tyranny will enslave him."
- Mahatma Gandhi
"Rebellion
against tyrants
is obedience to God."
- Thomas Jefferson
