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Politics Drops Its Pretenses – Article by Jeff Deist

Politics Drops Its Pretenses – Article by Jeff Deist

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Jeff Deist
December 28, 2019
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Can the increasing politicization of life in America be stopped, or even slowed?

To be sure, average Americans do not want this. Most people prefer not to lead overly political lives, beyond perhaps voting once in a while and grumbling about taxes or potholes. Most people prefer to focus on work, family, hobbies, sports, or a million other pursuits instead of politics. We watch the game instead of attending the Tuesday night city council meeting. But increasingly we all feel the pressure, drawing us inexorably into a highly-politicized world which demands we take binary “sides” on Trump, impeachment, abortion, guns, climate change, and far more. This politicization seeps into our jobs, family lives, neighborhoods places of worship, social interactions, and even our sports and entertainment.

The most salient feature of national politics in 2019 America is its lack of pretenses. The two political Americas, represented by Red and Blue teams, no longer pretend to share a country or any desire to live peaceably together. Much has been made of this cold civil war on both the Left and Right, and much of what has been made is probably over-hyped. Americans, after all, are materially comfortable, soft, addled, diabetic, and rapidly aging; the over-65 population is set to double in the coming decades. Hot civil wars require lots of young men with nothing to lose who are not busy playing Fortnite. But the overall mood of the country is decidedly hostile and suggestive of irreconcilable differences.

So how does our political system address this? By throwing gasoline on the fire, in the form of another national election in 2020. That looming contest already tells a story, it’s not about healing or coming together. Today the political class is more open about its desire to hurt and punish opponents; in fact, revenge and punishment feature prominently in the political narratives that fill our media feeds.

Hillary Clinton recently quipped that maybe she should run against Donald Trump in 2020 and “beat him again,” openly positioning her personal vendetta as the rationale for seeking the presidency. “The issues,” such as they are, take a distant backseat to her more pressing goal of defeating both Trump and his voters in a visceral way. Her 2020 candidacy, should it materialize, will coalesce around revenge: voters failed her not once but twice, in 2008 and 2016. Her campaign, almost by necessity, will be a scorched-earth exercise in revenge against the Deplorables.

Her potential Democratic primary rival Elizabeth Warren, meanwhile, appeared last week at an LGBT equality town hall—organized by CNN for the express purpose of further politicizing sex and sexuality (so much for pre-political rights). In response to a softball question about gay marriage (likely planted), Warren sneered that a hypothetical religious man should marry a woman “if he can get one.” Needless to say the audience loved it, which tells us less about Warren’s safe, vanilla views than it does about the setting and mood of attendees. Identity politics is required, not optional.

These presidential aspirants, like Trump, no longer care to maintain a facade of representing all Americans or smoothing over divisions when elections are over. Nobody runs for president to represent all Americans, and of course, nobody could in a far-flung country of 330 million people. Candidates who give lip service to the idea, as Tulsi Gabbard and Andrew Yang have, gain little traction in the media-driven bloodsport. The presidency is about winning either Red or Blue America, not both, and presidential candidates will be far more open about this in 2020—and with their hostility for the Electoral College. They are in the business of winning at all costs, not persuading. 51% of the electorate will do, and the rest deserve to suffer for not going along with the program.

The standard explanations and justifications for politics are breaking down. Democratic consensus and needful compromise and good governance were always empty bromides, but today our political overlords understand and pander to an altogether different mood. The Trump presidency, like the Brexit vote, was never accepted by the same elites who spent the early 21st century gushing about the sanctity of democracy. The entire pretense for democratic politics, ostensibly the peaceful transfer of political power and the consensual organization of human affairs, now gives way to new and uncomfortable questions. What if we cannot vote our way out of this? What if the structural problems of debt and entitlements and central banking and foreign policy cannot be solved politically? What if the culture wars are unwinnable? What if we have reached the end of politics as an instrument for keeping American society together?

Democracy and politics will not alleviate our problems; only committed individuals working in the intermediary institutions of civil society can. Democratic elections can work locally, and in small countries or communities; Switzerland’s system of express subsidiarity comes to mind. And clearly the best hope for America’s survival will come through an aggressive form of federalism or subsidiarity, one that dramatically reduces the winner-take-all stakes of national elections. But mass democracy, in a country as large as America, is a recipe for strife, bitterness, endless division, and much worse.

Murray Rothbard said in Power and Market that “ballots are hailed as substitutes for bullets.” But in modern America, politics leads us closer to war, not closer to peace and justice and comity. Why should we accept weaponized mass politics when we have civil society, markets, and non-state institutions?

We need an anti-politics movement just as surely as we need an antiwar movement.

Jeff Deist is president of the Mises Institute, where he serves as a writer, public speaker, and advocate for property, markets, and civil society. He previously worked as a longtime advisor and chief of staff to Congressman Ron Paul, for whom he wrote hundreds of articles and speeches. Mr. Deist also spent many years as a tax attorney advising private equity clients on mergers and acquisitions.

This article was published on Mises.org and may be freely distributed, subject to a Creative Commons Attribution United States License, which requires that credit be given to the author.

Do You Know Who the Swiss President Is? – Article by Bill Wirtz

Do You Know Who the Swiss President Is? – Article by Bill Wirtz

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The New Renaissance HatBill Wirtz
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Doris Leuthard. That’s the name of the incumbent Swiss president in case you wondered or might need it in a general knowledge quiz any time soon. But how come a country this well known on the international stage happens to have such an unknown executive?

The Swiss Opposed Centralization from the Start

The beginning of the Swiss confederacy wasn’t about power.

From the 14th century on, while Europe was torn in territorial conflicts or the religious Thirty Years War of 1618 to 1648, the (originally) 8 cantons of the Old Swiss Confederacy were a microcosm of peace and prosperity. These cantons in themselves did have religious differences, but preferred to agree on a pact of mutual military assistance to protect the neutrality of the region and its peace. The Holy Roman Empire had granted this community of cantons imperial immediacy, meaning they were declared free from its rule while being a part of it. As the European royalties raised massive amounts of taxes to finance their decade-long wars, being Swiss was comparable to living in the first true tax haven: by any means the destruction in all of Europe made the differences that these cantons have look insignificant.

Later, religious differences in Switzerland grew, sparkling battles between Catholic and Protestant cantons. Each of these battles had winners, yet none were able to impose a true change of regime, as the cantons were too diverse to be governable. The cantonal governments refused to cooperate with each other: the only foreign policy they could agree on was that of neutrality, which ended up saving it from war.

The French Revolutionary army invaded the Confederacy in 1798 and established the Helvetic Republic, a centralized state, abolished cantonal sovereignty and feudal rights and reduced the cantons to administrative districts, all in the image of France itself. This French nation-building project failed 5 years later, as the population didn’t cooperate with any centralization attempts. The Helvetic Republic was incompatible with the Swiss mentality: the people demanded that government decisions be made at the canton level, not at the federal level.

Centralization and Switzerland’s Civil War

After decades of struggles over the centralization of power, a civil war ended the everlasting Swiss question of the legitimacy of a federal government. The Sonderbund War started in 1847 and was a fight between seven conservative and Catholic cantons who opposed the centralization of power and rebelled against the Confederation which had been in place since 1814. What followed was probably one of the least spectacular wars in world history: the federal army had lost 78 men and had 260 wounded. The Sonderbund conspiracy dissolved and Switzerland became the state it is today in 1848.

Think about this, the Swiss fight (which was marked by its incredible lack of violence in comparison to others) was purely over the rejection of the centralization of power, the skepticism of the responsibilities that a large entity has, while, mind you, we’re only talking about a country of 16,000 square miles. The result is a relatively neutral state which maintains a greater amount of freedom and prosperity than most European nations.

The Federal Council, Impotent by Design

The executive of the federal multi-party directorial republic is a body called the Federal Council. It is composed of 7 members (each one responsible for one of the seven departments in Switzerland) who are voted into their position by both chambers of the Federal Assembly. Their presidency and vice-presidency is rotating each year, their mandate is four years. The current council is composed of 2 social democrats, 2 center-right conservatives, 2 national conservatives, and one Christian-democrat (Doris Leuthard, who’s the current president).

While the Confederation of Switzerland was designed to follow the example of the United States when it comes to federalism and states’ rights, the Swiss avoided the concentration of the executive into one person. It is interesting to note that although every European country made (and makes) constant changes to their form of government, this council has not changed since 1848. The only political change has been made to the Federal Council, is the reversal of the Magic Formula, or also known as the Swiss consensus, a political custom which divided the 7 seats in the country between the four ruling parties. With the arrival of billionaire industrialist and EU-opponent Christoph Blocher and his Swiss People’s Party, this political agreement had been shaken up and, furthermore, made Switzerland’s accession to the European Union more and more unlikely.

The council shows unity towards to the public and most decisions are made by consensus. That is largely because their function is more decorative than functional, as most of the power is still held by the cantons. Decisions related to education and even levying taxes are made at the regional level. There is no executive action or veto which the federal government could use.

The president of Switzerland has little to no room in public political discourse. So if you don’t know who the new president of Switzerland is, don’t worry. Some Swiss people might not know either.

Localism Works in Switzerland

The Swiss cantons perform the balancing act of politics: the conservative cantons are those outside of the big cities such as Zurich, Geneva or Bern (the capital). The population in the smaller communities reject the tendency to govern from the capital. As a result, the Swiss have continuously rejected proposals like the ones phasing out nuclear energy.

This push for localism would be considerably more difficult if it wasn’t for the system of direct democracy that is very common in the Confederacy.

All federal laws are subject to a three to four step process:

  1. A first draft is prepared by experts in the federal administration.
  2. This draft is presented to a large number of people in an opinion poll: cantonal governments, political parties as well as many NGO’s and associations out of civil society may comment on the draft and propose changes.
  3. The result is presented to dedicated parliamentary commissions of both chambers of the federal parliament, discussed in detail behind closed doors and finally debated in public sessions of both chambers of parliament.
  4. The electorate has a veto-right on laws: If anybody is able to find 50,000 citizens who will sign a form demanding a referendum within 3 months, a referendum must be held. In order to pass a referendum, laws need only be supported by a majority of the national electorate, not a majority of cantons. It’s not unusual for Switzerland to have referenda on more than a dozen laws in any given year.

These referenda are the reason why the political majorities have decided to include their own opposition in government: if the majority does not seek a consensus, the oppositions can use a citizens initiative (referendum) to overturn any decision made on the national level.

The system of checks and balances through both the aggressively localist cantons and the tool of direct democracy has made Switzerland particularly resistant to the growth of government, and one of the few relatively liberty-minded bastions in Europe.

Bill Wirtz studies French Law at the University of Lorraine in Nancy, France.

This article was originally published on FEE.org. Read the original article.

If the Fed Has Nothing to Hide, It Has Nothing to Fear – Article by Ron Paul

If the Fed Has Nothing to Hide, It Has Nothing to Fear – Article by Ron Paul

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The New Renaissance Hat
Ron Paul
January 19, 2015
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Since the creation of the Federal Reserve in 1913, the dollar has lost over 97 percent of its purchasing power, the US economy has been subjected to a series of painful Federal Reserve-created recessions and depressions, and the federal government has grown to dangerous levels thanks to the Fed’s policy of monetizing the debt. Yet the Federal Reserve still operates under a congressionally-created shroud of secrecy.No wonder almost 75 percent of the American public supports legislation to audit the Federal Reserve.

The new Senate leadership has pledged to finally hold a vote on the audit bill this year, but, despite overwhelming public support, passage of this legislation is by no means assured.

The reason it may be difficult to pass this bill is that the 25 percent of Americans who oppose it represent some of the most powerful interests in American politics. These interests are working behind the scenes to kill the bill or replace it with a meaningless “compromise.” This “compromise” may provide limited transparency, but it would still keep the American people from learning the full truth about the Fed’s conduct of monetary policy.

Some opponents of the bill say an audit would somehow compromise the Fed’s independence. Those who make this claim cannot point to anything in the text of the bill giving Congress any new authority over the Fed’s conduct of monetary policy. More importantly, the idea that the Federal Reserve is somehow independent of political considerations is laughable. Economists often refer to the political business cycle, where the Fed adjusts its policies to help or hurt incumbent politicians. Former Federal Reserve Chairman Arthur Burns exposed the truth behind the propaganda regarding Federal Reserve independence when he said, if the chairman didn’t do what the president wanted, the Federal Reserve “would lose its independence.”

Perhaps the real reason the Fed opposes an audit can be found by looking at what has been revealed about the Fed’s operations in recent years. In 2010, as part of the Dodd-Frank bill, Congress authorized a one-time audit of the Federal Reserve’s activities during the financial crisis of 2008. The audit revealed that between 2007 and 2008 the Federal Reserve loaned over $16 trillion — more than four times the annual budget of the United States — to foreign central banks and politically influential private companies.

In 2013 former Federal Reserve official Andrew Huszar publicly apologized to the American people for his role in “the greatest backdoor Wall Street bailout of all time” — the Federal Reserve’s quantitative easing program. Can anyone doubt an audit would further confirm how the Fed acts to benefit economic elites?

Despite the improvements shown in the (federally manipulated) economic statistics, the average American has not benefited from the Fed’s quantitative easing program. The abysmal failure of quantitative easing in the US may be one reason Switzerland stopped pegging the value of the Swiss Franc to the Euro following reports that the European Central Bank is about to launch its own quantitative easing program.

Quantitative easing is just the latest chapter in the Federal Reserve’s hundred-year history of failure. Despite this poor track record, Fed apologists still claim the American people benefit from the Federal Reserve System. But, if that were the case, why wouldn’t they welcome the opportunity to let the American people know more about monetary policy? Why is the Fed acting like it has something to hide if it has nothing to fear from an audit?

The American people have suffered long enough under a monetary policy controlled by an unaccountable, secretive central bank. It is time to finally audit — and then end — the Fed.

Ron Paul, MD, is a former three-time Republican candidate for U. S. President and Congressman from Texas.

This article is reprinted with permission from the Ron Paul Institute for Peace and Prosperity.

Will the Swiss Vote to Get Their Gold Back? – Article by Ron Paul

Will the Swiss Vote to Get Their Gold Back? – Article by Ron Paul

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The New Renaissance Hat
Ron Paul
September 14, 2014
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On November 30th, voters in Switzerland will head to the polls to vote in a referendum on gold. On the ballot is a measure to prohibit the Swiss National Bank (SNB) from further gold sales, to repatriate Swiss-owned gold to Switzerland, and to mandate that gold make up at least 20 percent of the SNB’s assets. Arising from popular sentiment similar to movements in the United States, Germany, and the Netherlands, this referendum is an attempt to bring more oversight and accountability to the SNB, Switzerland’s central bank.
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The Swiss referendum is driven by an undercurrent of dissatisfaction with the conduct not only of Swiss monetary policy, but also of Swiss banking policy. Switzerland may be a small nation, but it is a nation proud of its independence and its history of standing up to tyranny. The famous legend of William Tell embodies the essence of the Swiss national character. But no tyrannical regime in history has bullied Switzerland as much as the United States government has in recent years.

The Swiss tradition of bank secrecy is legendary. The reality, however, is that Swiss bank secrecy is dead. Countries such as the United States have been unwilling to keep government spending in check, but they are running out of ways to fund that spending. Further taxation of their populations is politically difficult, massive issuance of government debt has saturated bond markets, and so the easy target is smaller countries such as Switzerland which have gained the reputation of being “tax havens.” Remember that tax haven is just a term for a country that allows people to keep more of their own money than the US or EU does, and doesn’t attempt to plunder either its citizens or its foreign account-holders. But the past several years have seen a concerted attempt by the US and EU to crack down on these smaller countries, using their enormous financial clout to compel them to hand over account details so that they can extract more tax revenue.

The US has used its court system to extort money from Switzerland, fining the US subsidiaries of Swiss banks for allegedly sheltering US taxpayers and allowing them to keep their accounts and earnings hidden from US tax authorities. EU countries such as Germany have even gone so far as to purchase account information stolen from Swiss banks by unscrupulous bank employees. And with the recent implementation of the Foreign Account Tax Compliance Act (FATCA), Swiss banks will now be forced to divulge to the IRS all the information they have about customers liable to pay US taxes.

On the monetary policy front, the SNB sold about 60 percent of Switzerland’s gold reserves during the 2000s. The SNB has also in recent years established a currency peg, with 1.2 Swiss francs equal to one euro. The peg’s effects have already manifested themselves in the form of a growing real estate bubble, as housing prices have risen dangerously. Given the action by the European Central Bank (ECB) to engage in further quantitative easing, the SNB’s continuance of this dangerous and foolhardy policy means that it will continue tying its monetary policy to that of the EU and be forced to import more inflation into Switzerland.

Just like the US and the EU, Switzerland at the federal level is ruled by a group of elites who are more concerned with their own status, well-being, and international reputation than with the good of the country. The gold referendum, if it is successful, will be a slap in the face to those elites. The Swiss people appreciate the work their forefathers put into building up large gold reserves, a respected currency, and a strong, independent banking system. They do not want to see centuries of struggle squandered by a central bank. The results of the November referendum may be a bellwether, indicating just how strong popular movements can be in establishing central bank accountability and returning gold to a monetary role.

Ron Paul, MD, is a former three-time Republican candidate for U. S. President and Congressman from Texas.

This article is reprinted with permission from the Ron Paul Institute for Peace and Prosperity.