Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Amazon Black Friday Dell 32 Inch S3220DGF VA Curved Screen Gaming Monitor Bargain Deal! - 25th Nov 20
Biden the Silver Bull - 25th Nov 20
Inflation Warning to the Fed: Be Careful What You Wish For - 25th Nov 20
Financial Stocks Sector ETF Shows Unique Island Setup – What Next? - 25th Nov 20
Herd Immunity or Herd Insolvency: Which Will Affect Gold More? - 25th Nov 20
Stock Market SEASONAL TREND and ELECTION CYCLE - 24th Nov 20
Amazon Black Friday - Karcher K7 FC Pressure Washer Assembly and 1st Use - Is it Any Good? - 24th Nov 20
I Dislike Shallow People And Shallow Market Pullbacks - 24th Nov 20
Small Traders vs. Large Traders vs. Commercials: Who Is Right Most Often? - 24th Nov 20
10 Reasons You Should Trade With a Regulated Broker In UK - 24th Nov 20
Stock Market Elliott Wave Analysis - 23rd Nov 20
Evolution of the Fed - 23rd Nov 20
Gold and Silver Now and Then - A Comparison - 23rd Nov 20
Nasdaq NQ Has Stalled Above a 1.382 Fibonacci Expansion Range Three Times - 23rd Nov 20
Learn How To Trade Forex Successfully - 23rd Nov 20
Market 2020 vs 2016 and 2012 - 22nd Nov 20
Gold & Silver - Adapting Dynamic Learning Shows Possible Upside Price Rally - 22nd Nov 20
Stock Market Short-term Correction - 22nd Nov 20
Stock Market SPY/SPX Island Setups Warn Of A Potential Reversal In This Uptrend - 21st Nov 20
Why Budgies Make Great Pets for Kids - 21st Nov 20
How To Find The Best Dry Dog Food For Your Furry Best Friend?  - 21st Nov 20
The Key to a Successful LGBT Relationship is Matching by Preferences - 21st Nov 20
Stock Market Dow Long-term Trend Analysis - 20th Nov 20
Margin: How Stock Market Investors Are "Reaching for the Stars" - 20th Nov 20
World’s Largest Free-Trade Pact Inspiration for Global Economic Recovery - 20th Nov 20
Dating Sites Break all the Stereotypes About Distance - 20th Nov 20
THE STOCK MARKET BIG PICTURE - Video - 19th Nov 20
Reasons why Bitcoin is Treading at it's Highest Level Since 2017 and a Warning - 19th Nov 20
Media Celebrates after Trump’s Pro-Gold Fed Nominee Gets Blocked - 19th Nov 20
DJIA Short-term Stock Market Technical Trend Analysis - 19th Nov 20
Demoncracy Ushers in the Flu World Order How to Survive and Profit From What Is Coming - 19th Nov 20
US Bond Market: "When Investors Should Worry" - 18th Nov 20
Gold Remains the Best Pandemic Insurance - 18th Nov 20
GPU Fan Not Spinning FIX - How to Easily Extend the Life of Your Gaming PC System - 18th Nov 20
Dow Jones E-Mini Futures Tag 30k Twice – Setting Up Stock Market Double Top - 18th Nov 20
Edge Computing Is Leading the Next Great Tech Revolution - 18th Nov 20
This Chart Signals When Gold Stocks Will Explode - 17th Nov 20
Gold Price Momentous ally From 2000 Compared To SPY Stock Market and Nasdaq - 17th Nov 20
Creating Marketing Campaigns Using the Freedom of Information Act - 17th Nov 20
ILLEGITIMATE PRESIDENT - 17th Nov 20
Stock Market Uptrend in Process - 17th Nov 20
How My Friend Made $128,000 Investing in Stocks Without Knowing It - 16th Nov 20
Free-spending Biden and/or continued Fed stimulus will hike Gold prices - 16th Nov 20
Top Cheap Budgie Toys - Every Budgie Owner Should Have These Safe Bird Toys! - 16th Nov 20
Line Up For Your Jab to get your Covaids Freedom Pass and a 5% Work From Home Tax - 16th Nov 20
You May Have Overlooked These “Sleeper” Precious Metals - 16th Nov 20
Demystifying interesting facts about online Casinos - 16th Nov 20
What's Ahead for the Gold Market? - 15th Nov 20
Gold’s Momentous Rally From 2000 Compared To Stock Market SPY & QQQ - 15th Nov 20
Overclockers UK Quality of Custom Gaming System Build - OEM Windows Sticker? - 15th Nov 20
UK GCSE Exams 2021 CANCELLED! Grades Based on Mock Exams and Teacher Assessments - 15th Nov 20
Global "Debt Mountain": Beware of This "New Peak" - 13th Nov 20
Overclocking Zen 3 Ryzen 5600x, 5800x, 5900x and 5950x to 4.7ghz All Cores Cinebench R20 Scores - 13th Nov 20
Is Silver Leading Bitcoin or is Bitcoin Leading Silver? - 13th Nov 20
How Elliott Waves Simplify Your Technical Analysis - 13th Nov 20
How to buy Bitcoins using debit/credit card? - 13th Nov 20
Will COVID Vaccine Kill Gold and Silver? - 12th Nov 20
Access to Critical Market Reports - 12th Nov 20
Stock Market Dow Futures Reach 30,000 on News of COVID-19 Vaccine Trials Success - 12th Nov 20
8 Terms & Conditions You Must Know Before Asking For Life Insurance Policy Quotes - 12th Nov 20
Gold Stocks Post 2020 US Election Outlook - 11th Nov 20
Champions’ League Group Stage Draw: All You Need To Know - 11th Nov 20
Stock Market Secular Trend - 11th Nov 20
Stock Market Correction Curtailed by US Election - 11th Nov 20
What Causes a Financial Bubble? - 11th Nov 20
Ryzen 9 5900X RTX 3080 - Scan.co.uk vs Overclockers.co.uk UK Custom PC System Builder Review - 10th Nov 20
Killing Driveway Weeds FAST with a Pressure Washer - Saving Block Paving from LOTS of WEEDs - 10th Nov 20
Trump Fired, Biden Hired, What Next?  - 10th Nov 20
Looking for a Personal Loan? Here Is What You Have To Know  - 10th Nov 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

The Breakup of the United States

Politics / US Politics Jul 26, 2010 - 03:08 AM GMT

By: Michael_S_Rozeff

Politics

Best Financial Markets Analysis ArticleAs the dissatisfactions of Americans with their national government grow, so does the likelihood of the breakup of the United States. I believe that most Americans can improve their well-being by ending the national government, that is, ending the Union. I believe that this goal should shape politics if politics is to do much good.


I don’t think Americans are going to be the first people in the modern era to initiate a large-scale anarchy. But Americans might conceivably move back to a federal form of government something like that under the Articles of Confederation. If so, the problem is how to proceed. Many Americans feel (and are) trapped and thwarted by government power.

I see two paths. Americans can do this either acting as individuals formed into a body politic of 300 million Americans or as 50 body politics organized by state. I think action by state has a better chance of success.

To act as one body, Americans would have to alter their Constitution. The divisions among Americans make this highly unlikely. Even if it were pursued, the results would be highly uncertain.

I like to think of federal programs being made optional at either the state or the personal level, but that means ending the Constitution or radically amending it. This takes me back to the other path of change: the States. This path looks more viable.

We the People created the Constitution through state legislatures. That is a quasi-legal path to undoing the Constitution and thus breaking up the United States. This begins a process by which Americans take back their own government. I say "begins" because most states are also candidates for restructuring. Many local governments are also out of control.

I don’t think Americans can improve their lot by participating in national politics under the current rules of the national game. I think they have to change the rules. They have to end the Union and get out from under the existing Constitution, which is now entirely controlled and interpreted by the national government.

Since there is no consensus for going back to the original Constitution and since it would have to be rewritten and renegotiated, which is a process of uncertain outcome and which is impractical anyway, this leaves one viable path: ending the Union and ending this Constitution.

Rather than thinking in terms of national politics, which at best can only produce marginal changes and which plays into the hands of the national powers-that-be, it would be far smarter to have no national or federal government at all. Although this involves significant political restructuring, We the People and the States can always retain or exercise options to form federated organizations for specific and limited purposes if we so desire.

But by what means can Americans undo the Union?

A viable means is the withdrawal of consent by Vermonters or Texans or Alaskans or Arizonans or Californians or the citizens of any state to the U.S. government. People gain leverage and power against the national Leviathan by acting as citizens of their respective states. They need to act through their state legislatures, not as citizens of the United States. In the old days of whaling, the method of bringing down the whale was by several crews working together in several boats. It was not by individual whalers rowing around by themselves and confronting Leviathan on their own.

The states entered the Union. Secession once before almost ended the Union. The states are the political entities by which the Union and its burdens and injustices can be ended.

Action through one or more states is one of the few and maybe the only viable political means by which the Union can be broken up.

Contrast this with a national tax revolt, something that I believe is not a viable means of achieving a significant and lasting change in our politics. A tax revolt movement that seeks redress at the national level will not cause the U.S. to break up. That is the politics of accommodation and adjustment. It doesn’t challenge Congress itself. It doesn’t challenge the United States. It doesn’t challenge the Constitution. It leaves the power structure intact. As soon as such a movement is tossed a few crumbs, it loses its momentum. The national government divides it and conquers it. The national government lives on. It can regain its dominance over time by any number of means, such as by invoking some imaginary emergency.

A tax revolt that works from and through the state legislatures directly undermines the Union. It directly challenges the power of Congress to tax. That’s a far stronger political platform for restructuring the United States.

Outright secession is one political measure in a spectrum of possible actions by which one or more states stand up to the U.S. government. Nullification is another. Withdrawal from the banking system is another. A separate payments system at the state level is a fourth. Refusal to obey any of hundreds of U.S. directives is a fifth. The formation of alliances among states is another.

In fact, there are so many possible ways by which one or more states stand up to the Union that, given enough time and the right conditions, a breakup is all but assured. The same cannot be said of any movement that seeks to work change by confronting Americans as one large group with their national government.

All that has to happen at present is a spark lit by one or more States and the Union will go up in smoke. The Empire will fall. The tinder is very dry right now. One bolt of lightning will set the U.S. ablaze.

The breakup can start small. Momentum will do the rest. There will be a bandwagon effect. The accumulated dissatisfactions with the monumental corruption, power-mongering, waste, and totalitarian nature of the United States government will seek and find channels of political relief.

The number of potential actions that can set off a chain reaction is very large. Once one or more of the States throw down the gauntlet, the downfall of the U.S. will be sparked.

This will come through the financial markets. The value of the United States paper currency depends critically on the taxing power of the United States. Anything that undermines U.S. tax collections undermines the U.S. dollar.

To bring down the U.S. government, all it may take is for one state to declare that its citizens need no longer pay taxes to the U.S. government. No matter what the national government does next and no matter what complex sequence of political tit for tat ensues, the uncertainty will balloon.

The financial markets will do the rest. A flight from the U.S. dollar will set in. Flight from the dollar will torpedo and sink the national government.

The Chinese and other foreign lenders will be very unhappy about their investments. So will anyone who is a creditor of the U.S.

Financial market prices at present are not factoring in even a small chance of this happening. Lenders to Uncle Sam act as if everything is hunky-dory. U.S. government bonds even look attractive to those who believe further and deeper depression is imminent.

No break up is visible in the short run. This seems to confirm such thinking. But boiling beneath the surface is a rising stream of heated discontent. Major political change is far more likely than it may seem to superficial observation.

Greek bond prices fell very sharply when the government went into crisis. They only recovered when the rest of Euroland decided to bail out the Greek government and bondholders.

There is no external bank or government that can or will extend credit to the U.S. to save the dollar once the perception spreads that its tax-collecting power is permanently impaired.

The Federal Reserve can’t save the dollar or the U.S. government by extending credit. The markets will see right through that. In a politically fragile situation where the tax-collecting power of the national government has sunk, the Fed is powerless to save the national government.

Once enough people in a given state gain the conviction that they will be far better off by shutting off the flow of their incomes to Washington, then they will get their legislature to stand up to Washington’s dictates. This will encourage citizens of other states who are in a similar situation.

There does not have to be a shot heard round the world as on April 19, 1775. A Declaration of Tax Independence will take its place.

Even if such a process of one state standing up against Uncle Sam fails, even if it elicits responses from the national government that thwart immediate success, experience will be gained. The national government is bound to show its true oppressive colors in such an episode. The game changes. A game-changing event or series of events is what is needed.

The government of the United States markets itself as the nation’s defender. It advertises that it provides security nationwide for We the People. It claims that it provides military security, economic security, and social security.

These are all false claims. More and more Americans recognize these claims as false. More and more Americans recognize that the United States government has reduced their security in all its many forms.

The United States government has succeeded in entangling Americans in an endless succession of foreign wars. It has succeeded in retarding and even reversing standards of living. It has succeeded in raising medical care costs and reducing the quality of medical care. It has perpetuated a Ponzi scheme of social security that is doomed to fail. The United States government is responsible for reducing American freedoms, for spying on Americans, for searching them, and for turning travel into a nightmare.

More and more Americans realize that promises of security do not create security. More and more Americans realize that the United States government creates insecurity and disorder.

The United States government does not deserve the tax dollars it collects. This is the fundamental bread-and-butter reason for ending the Union. The Constitution allows massive tax collections for purposes enunciated by Washington. There is no way to stop this process, which is killing the country, except by undoing the political foundation by which it is enforced.

The stream of tax dollars flowing to Washington can be turned off by the action of one or more state legislatures who act on behalf of their citizens. When that source of financing is halted, the United States government will be well on its way to breakup. This is the great gift that we should bestow on ourselves and future Americans.

Americans will remain. America will remain. The nation will remain. The People will remain. The country will remain. The United States government is none of these things. It will go. With that burden lifted from our shoulders, we can once again make our way to better lives. We can renew a process of liberation and liberty that has been frustrated.

Michael S. Rozeff [send him mail] is a retired Professor of Finance living in East Amherst, New York. He is the author of the free e-book Essays on American Empire.

    © 2010 Copyright Michael S. Rozeff - All Rights Reserved
    Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules