The Necessary Revolution

I am in the camp that believes, like Thomas Jefferson, that “The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants”.  Our Federal Government has come to closely resemble that unbounded tyrannical monster against which our country rebelled in the late 18th century such that now is one of those times.  The problem is that with our bread and circuses, EBT, sports, video consoles and so on, no one really cares that the foundations of our Republic have been so weakened as to be about to crumble.  There is no spark to ignite revolt.  I wonder if that may be about to change.

On Friday, October 9th, 2015 Rick Santelli, father of the Tea Party, interviewed Dr. Lacy Hunt, one of the best economic thinkers out there in my opinion (and one of the only guys to work David Hume into his musings without missing a beat, God bless him), and they touched on the notion of negative interest rate policy (NIRP).  Just after 2:35 he hits the money quote which is that to enforce negative rates the Fed would have to “call in the currency”.  Calling in the currency might just ignite the spark of revolution.  Why?  Well it would arrogate even more power and control of peoples every day lives to the government for one thing.  How?  All transactions would have a digital record and be trackable by the Leviathan.  No more underground economy to supplement the livelihoods of those least able to withstand the overwhelming tide of regulation and taxation emanating from the Beast(s).

As an example, the Apple House near here sells their autumn haul at frankly ridiculous prices but the product is awesome so people pay…in cash only.  If NIRP comes to be they will have to use trackable forms of payment tech which means ultimately they will probably close, or prices will rise to adjust for the costs incurred.  Tax revenues will probably rise initially, but at the end of the day, the scope of activity will settle out lower than it is today.  And those people will know who killed their businesses.  And they will be pissed off, hopefully at the government.  Perhaps that along with other things will finally push people over the edge and spark the Necessary Revolution.

Lacy Hunt on NIRP at CNBC





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