The Eden Myth and the Ratification Con of 1789

Filed in Federal Reserve, silver, Spot Gold, ubs by on May 12, 2010 0 Comments

It’s often said that America was once a free country, but that its freedom has been heavily damaged by a relentless growth in government. Some (like Aaron Russo in his documentary America: From Freedom to Fascism ) date the decline from 1913, when the Federal Reserve was chartered and the Income Tax enacted; but I no longer think it began that late. The “Pristine State” advocates suppose that there was once in our history a kind of Eden from which we have fallen, and so that all we need now is somehow to get back there — to “constitutional rule.” There wasn’t, and we don’t. I think our troubles began no later than 1789. The drafting was done in 1787, and the needed nine States had ratified it by June 21st, 1788, so the Constitution became supreme law on that day. Then on March 3rd 1789 Congress opened its doors and the following month George Washington presided. It’s very interesting to notice what the new Congress did, in its first session, from March through September of that year. It committed six acts, before going home for the winter in September. See if any of them give you warm, fuzzy feelings; and in a moment I’ll focus on the sixth, because of its huge importance. First came some administration; deciding on how oaths of office were to be taken. Not too much there to bother us. Second was the “Hamilton Tariff,” under which revenue was to be raised. So the second-ever Act of the US Congress was to arrange for the confiscation of property. Sure, it was Constitutional — it was a set of tariffs, imposed on certain imports; some must have recalled that it was a tariff on tea that had sparked the Revolution in the first place, so may have wondered whether anything had changed except the geographic location of the thieves. The import duties favored Northern manufacturers by making foreign goods seem more expensive — it was protectionist — and hurt Southerners by making them pay more. From Day One, a division was being fashioned that led after seventy years to open warfare. So the first substantive thing Congress did was to start to set the scene for internal conflict. Third came an establishment of “Foreign Affairs” — now the Department of State — by which the new government was to execute “policies” towards other nations. If the intention was to have a perfectly uniform policy towards all, that would not have been needed. By establishing one, it was clear there were to be some nations more favored, others less favored. That’s what a “foreign policy” means, and it is ultimately the cause of war and, …

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The Eden Myth and the Ratification Con of 1789

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