James Madison Archives - Free-Man's Perspective

What if your grandfather had gone on a wild spending binge, long before you were born, and put himself millions of dollars in debt to people who knew he could never pay? Would it be your obligation to work double-shifts all your life to pay that debt back? And if you died before paying it off, would it become your baby’s obligation?

I think most of us would answer those questions with a resounding “No way!” As well we should. We are not and should not be slaves to the past – slaves to actions we never took and for which we had no possible means of consent.

On September 6th, 1789, in the very first year of the US Constitution, Thomas Jefferson endorsed precisely this conclusion in a letter he wrote to James Madison:

I say, the earth belongs to each of these generations during its course, fully and in its own right. The second generation receives it clear of the debts and encumbrances of the first, the third of the second, and so on.

For if the first could charge it with a debt, then the earth would belong to the dead and not to the living generation.

He wrote the same thing to John Wayles Eppes twenty-four years later, in June of 1813:

The earth belongs to the living, not to the dead.

To lay debt upon the unborn is thoroughly immoral. To try to enforce such a debt is thoroughly criminal.

Your Child or Grandchild

This conversation is critically important, because each child born in the US is born massively indebted. Using $200 trillion to represent the promises already made to people now living (some estimates are higher) and assuming a population of 310 million, that comes to $645,161 of debt, by the time your child reaches his cradle. If you expect your child to become a productive person, his or her share will be roughly twice that amount, or approximately $1.3 million.

(The US government is not unique in this regard, by the way. I use the US example, because it’s easier and because most of my readers seem to be Americans.)

Would you sign papers loading your baby with such a debt?

I am stating these facts in personal terms to cut through the usual BS that passes for public discourse. I am also using the voices of “founding fathers,” partly because it undercuts the fraudulent government story that “we’re following the wisdom of the founders.” Beside, we’re talking about real persons here. Making it personal is not manipulative, but accurate. To make it amorphous would be manipulative.

And while I’m on the subject of founding fathers, here’s something George Washington wrote in a letter to James Madison, also in 1789:

No generation has a right to contract debts greater than can be paid off during the course of its own existence.

I think that’s a very clear and very moral expression. It is not, however, what has been done.

A group formed recently under the phrase, “Not our debt.” I know nothing about the group, but their phrase is entirely correct. The debt of the US government does not belong to us, and we have no moral obligation to repay it.

Most of us do pay something toward that debt (which grows exponentially, just the same), but we should stay very clear as to why we pay. That reason, of course, is naked force, as in coercion and violence. There is no morality to it, except the morality that some people might invent, either to salve their consciences or as sycophants to power. (Though most just do what everyone else does, never considering why.)

My advice is this: Do whatever you want as far as paying under threat, but don’t ever be confused about the morality of this situation. This is a swindle of gargantuan proportions. And that’s precisely what Thomas Jefferson believed. You can see this in a letter he wrote to John Taylor, dated May 28, 1816:

The principle of spending money to be paid by posterity, under the name of funding, is but swindling posterity on a large scale.

Do what you need to do, but don’t ever think you have a moral responsibility to pay that kind of debt.

Paul Rosenberg
FreemansPerspective.com

“There is a lot of ruin in a nation,” wrote Adam Smith. His point was that it takes a long time for nations to fall, even when they’re dead on their feet. And he was certainly right.

America took its fatal blow in 1913, one hundred years ago; it just hasn’t hit the ground yet. This is a slow process, but it’s actually fast compared to the Romans. It took them several centuries to collapse.

The confusing thing about our current situation is that America – and by that I mean the noble America that so many of us grew up believing was real – has long been poisoned. Its liver, kidneys, and spleen have all stopped functioning. Its heart beats slowly and irregularly. But it still stands on its feet and presents itself as alive to all those who would let their eyes fool them.

And I’m not without sympathy for those who want to believe. They find themselves in a world where politics is almighty, and where their comfort, prosperity, and perhaps their survival all hang in a delicate balance. They don’t want to upset anything, and questioning the bosses is a good way to get yelled at.

But just because someone wants to believe doesn’t make it so. We are not children and we are not powerless. We Producers should never be intimidated by those who live at our expense. So let’s start looking at the facts.

1913: The Horrible Year

For all the problems America had prior to 1913 (including the unnecessary and horrifying Civil War), nothing spelled the death of the nation like the horrors of 1913.

Here are the key dates:

February 3rd:

The 16th Amendment to the United States Constitution was ratified, authorizing the Federal government to impose income taxes on individuals. An amendment to a tariff act in 1894 had attempted to do this, but since it was clearly unconstitutional, the Supreme Court struck it down. As a result – and mostly under the banner of bleeding the rich – the 16th amendment was promoted and passed.

As a result, the Revenue Act of 1913 was signed into law by President Woodrow Wilson in October. Income taxes began in 1914, with the government swearing (as in, “only a crazy person would say otherwise!”) that the rate would never, ever go higher than one or two percent.

And, by the way, the amendment was introduced by Senator Aldrich of Rhode Island, to whom we’ll come again shortly.

April 8th:

The 17th Amendment to the United States Constitution was ratified, taking the powers of the states and transferring them to Washington, by mandating the popular election of senators.

Previously, senators were appointed by state legislatures, restraining the power of the national government. This change gave political parties immediate and massive power, nearly all of which was consolidated in the city of Washington.

The amendment was ratified in the name of restraining the rich and making government into a force for good. It was true that state governments were often corrupt, but the implied idea that Washington was pristine was and remains a bad joke. A structure featuring small, separate pockets of corruption is far less dangerous than one featuring a single, large seat of corruption, to which oceans of money are gathered. As Thomas Jefferson wrote:

It is not by the consolidation or concentration of powers, but by their distribution that good government is effected.

December 23rd:

Woodrow Wilson signs the Federal Reserve Act, which had passed Congress just the previous day. This system – called the Aldrich Plan, and promoted by Senator Nelson Aldrich of Rhode Island – gave a monopoly on the creation of dollars to a consortium of large banks.

The Act was passed, by the way, in the name of financial stability.

And Senator Aldrich? Wikipedia says this about him:

He… dominated all tariff and monetary policies in the first decade of the 20th century… Aldrich helped to create an extensive system of tariffs that protected American factories and farms from foreign competition, while driving the price of consumer goods artificially high… Aldrich became wealthy with insider investments in streets, railroads, sugar, rubber and banking… His daughter, Abby, married John D. Rockefeller, Jr., the only son of John D. Rockefeller.

I’ll leave you to connect the dots on Aldrich, his family, the Rockefeller banking empire (Chase Manhattan and others), high political offices (such as Governor and Vice President Nelson Aldrich Rockefeller) and so on.

The Combination

Here is why I say that these three changes of 1913 killed America:

They robbed every producer in America of their money and handed it to politicians.

Until 1913, ordinary people kept their money. Carpenters, grocers, and repair men were able to make business loans and to retire on stock dividends. Once the income tax came in, however, politicians were empowered to skim off more and more of their money, which is precisely what happened. While the modern skim is multi-faceted, the average producer is now stripped of half his or her earnings every year, leaving politicians to spend it.

They consolidated all power in Washington DC.

This is precisely what James Madison wished to avoid when writing the US Constitution. (Again, note the Jefferson quote above.) By depriving the states of their remaining power, the City of Washington had no opposition. Since then, the Washington government has taken over practically everything on the continent and is choking it to death… a lot like the city and empire of Rome before it.

They created a money empire that took over almost everything.

When you start talking about the immense power of central banking, people generally turn away from it, because it’s just too much to take. So, let me say it this way:

How much money could you make, if you knew precisely when interest rates would go up or down?

A lot, right? Well, that’s exactly the power that these bankers have – because they’re the ones who set the rates.

Then, with that money, and with that foreknowledge, how many politicians could you pay off? How many pieces of legislation could you buy? Through all the financial problems of the past few years, which is the one group that has been protected at every step? Ever wonder why?

I could add more, but I think my point is made. America, as we grew up thinking of it, is dead. Whether the carcass hits the ground in days or decades is almost irrelevant; it’s over.

The question that remains is what we’ll do about it.