Liberty Quote Of The Day: Rand Paul

We've Come To Take Our Government Back.

"Do we believe in the individual or believe in The State? Thomas Jefferson wrote the government is best that governs least. Likewise, freedom is best when enjoyed by the most. America can rise up and surmount these problems if we just get government out of our way."

-Rand Paul - 11/2/2010 U.S. Senate Acceptance Speech from Kentucky

Amen.

Vote or DIIIIIIIIIIEEEEEEEEEEEEEE!!!!!!!!!!!!!

Vote donkey today and don't ever complain again

OR

choose a different path: one that supports liberty, encourages a government that protects and serves its people rather than controls and harbors power over them, and that provides for its citizens to operate relatively unfettered by centralized influences.

Liberty Quote Of The Day: Jens O. Parsson

Jens Parsson discusses how the persistent debasement of money kills society in his 1974 book "Dying of Money: Lessons of the Great German and American Inflations". The below quote is reminiscent of Murray Rothbard's description of the early "fun" portions of an inflation as a "heady wine" (click here for Rothbard's in-depth essay on German hyper inflation).

In any case, Parsson makes the point that monetary inflation always ends in a trail of tears, because it is addictive and requires an increasing volume of inflated money in order to keep the party going. As soon as the spigot is turned off, pain comes, so the spigot is never turned off. In fact, it is provides a constantly accelerating flow and ultimately either tragically deluges society in an out of control hyperinflation or, if discipline is somehow re-instituted, ends in a painful deflationary liquidation. Read on for Parsson's quote:

"Everyone loves an early inflation. The effects at the beginning of inflation are all good. There is steepened money expansion, rising government spending, increased government budget deficits, booming stock markets, and spectacular general prosperity, all in the midst of temporarily stable prices. Everyone benefits, and no one pays. That is the early part of the cycle. In the later inflation, on the other hand, the effects are all bad. The government may steadily increase the money inflation in order to stave off the latter effects, but the latter effects patiently wait. In the terminal inflation, there is faltering prosperity, tightness of money, falling stock markets, rising taxes, still larger government deficits, and still roaring money expansion, now accompanied by soaring prices and an ineffectiveness of all traditional remedies. Everyone pays and no one benefits. That is the full cycle of every inflation."

- Jens O. Parsson, Dying of Money: Lessons of the Great German and American Inflations (1974)

[HT: LB]

The Revolution Marches Forward

I have nothing to add.

Liberty Quote Of The Day: George Bernard Shaw

We instantly fell in love with this quote, when we heard it released from the lips of Margaret Thatcher, although it originates from George Bernard Shaw. It is so true. Enjoy the bonus Thatcher video below.

"Freedom incurs responsibility; that is why so many men fear it."

- George Bernard Shaw

Liberty Quote Of The Day: Booker T. Washington

As we sit watching the great freedom that our forefathers granted to us melting at the hands of huge oppressive government, an administration that believes it is all knowing, sovereign debt loads spiraling upward, and a Federal Reserve that has manipulated price signals to disasterous outcomes, it is pleasant to think back on what it must have been like to have the chains of slavery fall to your feet and to take your first few free steps.

Booker T. Washington reflects back on that moment - when the Emancipation Proclamation was first read to him. While we're not big fans of Abe Lincoln in many ways, obviously ending slavery was a true moral good.

"As the great day drew nearer, there was more singing in the slave quarters than usual. It was bolder, had more ring, and lasted later into the night. Most of the verses of the plantation songs had some reference to freedom.... Some man who seemed to be a stranger (a United States officer, I presume) made a little speech and then read a rather long paper—the Emancipation Proclamation, I think. After the reading we were told that we were all free, and could go when and where we pleased. My mother, who was standing by my side, leaned over and kissed her children, while tears of joy ran down her cheeks. She explained to us what it all meant, that this was the day for which she had been so long praying, but fearing that she would never live to see."

- Booker T. Washington - Up From Slavery: An Autobiography

Liberty Quote Of The Day: Frederich Hayek

Amongst the collection of brilliant attendees of Mises's weekly seminars back in Vienna, Frederich Hayek would distinguish himself as first amongst equals when he later won a Nobel Prize for building on Mises's groundbreaking work in developing an understanding of the impact of credit creation in business cycles.

Hayek was a proponent of liberty and understood that the government could not solve man's inherent problems (they are inherent) and that in its efforts to do good, it would generally have a multiplier of negative unintended consequences. This is Hayek's second Liberty Quote of the Day.

"What our generation has forgotten is that the system of private property is the most important guarantee of freedom, not only for those who own property, but scarcely less for those who do not. It is only because the control of the means of production is divided among many people acting independently that nobody has complete power over us, that we as individuals can decide what to do with ourselves."

- Frederich August Hayek - The Road to Serfdom: 1944

Ronald Reagan's Speech Supporting Barry Goldwater At 1964 GOP Convention

This speech is considered by many the great speech of modern republican history. Small government, firm but humble economic policy, inalienable rights, low taxes, low spending, government as a servant not a master, balance budgets. While many GOP politicians parrot those ideals, they practice anything but.

Watching this speech makes you quickly realized how far the GOP has drifted...this, despite invoking the name "Ronald Reagan" so often. Other than a few voices that are largely ignored - such as Ron Paul - most mainstream Republican politician bare little similarity to this man's views.

It is worth your time.

Liberty Quote Of The Day: Ludwig von Mises

As TILB followers know, Mises is an unrivaled genius in understanding economic consequences and human behavior. We proudly display at the top of our website his "tu ne cede malis" quote as an ironclad motto of standing against the Wormwoods that populate our government.

As we collectively celebrate the wonders of money printing and the socialism of losses, TILB can't help but reflect back on this quote from Mises's great work Human Action. If it doesn't give you a warm fuzzy about Helicopter Ben, nothing will.

"There is no means of avoiding a final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion or later as a final and total catastrophe of the currency system involved."

- Ludwig von Mises

From somewhere, far in the distance, beyond the rising fog and across the seas, the wind carried on its back a faintly whispered word, audible only to the ears of the awake: "gold".

[HT: TD]

Liberty Quote Of The Day: Justice Stephen J. Field - Part I

This is the first of two quotes we will provide from one of our new monetary heros, Justice Stephen J. Field of the late 19th century U.S. Supreme Court. Tomorrow, we'll give you Part II.

Today in Part I, we provide Justice Field's concluding statement from his dissenting opinion in Juilliard v. Greenman, 110 U.S. 470 (1884), which affirmed the constitutionality of Congress issuing paper money not backed by gold or other stores of value. Justice Field showed a strong Constrained Vision and remarkable long term prescience. The quote speaks for itself.

“From the decision of the Court I see only evil likely to follow. There have been times within the memory of all of us when the legal tender notes of the United States were not exchangeable for more than one-half of their nominal value. The possibility of such depreciation will always attend paper money. This inborn infirmity no mere legislative declaration can cure. If Congress has the power to make the notes a legal tender and to pass as money or its equivalent, why should not a sufficient amount be issued to pay the bonds of the United States as they mature? Why pay interest on the millions of dollars of bonds due now when Congress can in one day make the money to pay the principal? And why should there be any restraint upon unlimited appropriations by the government for all imaginary schemes of public improvement if the printing press can furnish the money that is needed for them?”

- Justice Stephen J. Field

Turn the printing presses on Uncle Ben. There's nobody to stand in your way.

HT: MAK

Liberty Quote Of The Day: John Adams

Second president of the United States and revolutionary heartbeat, John Adams, was a prolific writer and constant thinker. He understood the dangers of too much power and sought to limit it within our government, a lesson forgotten by most of today's public "servants".

"There is danger from all men. The only maxim of a free government ought to be to trust no man living with power to endanger the public liberty."

- John Adams

Follow Up To Yesterday's Patrick Henry Liberty Quote Of The Day

Long-time friend of TILB, CK, emailed a request for historical context on today's Patrick Henry Liberty Quote of the Day. Herein follows the complete text of his famous Give Me Liberty or Give Me Death speech from whence we plucked today's quote [red font added]:

Give Me Liberty Or Give Me Death
Patrick Henry, March 23, 1775.

No man thinks more highly than I do of the patriotism, as well as abilities, of the very worthy gentlemen who have just addressed the House. But different men often see the same subject in different lights; and, therefore, I hope it will not be thought disrespectful to those gentlemen if, entertaining as I do opinions of a character very opposite to theirs, I shall speak forth my sentiments freely and without reserve. This is no time for ceremony. The questing before the House is one of awful moment to this country. For my own part, I consider it as nothing less than a question of freedom or slavery; and in proportion to the magnitude of the subject ought to be the freedom of the debate. It is only in this way that we can hope to arrive at truth, and fulfill the great responsibility which we hold to God and our country. Should I keep back my opinions at such a time, through fear of giving offense, I should consider myself as guilty of treason towards my country, and of an act of disloyalty toward the Majesty of Heaven, which I revere above all earthly kings.

Mr. President, it is natural to man to indulge in the illusions of hope. We are apt to shut our eyes against a painful truth, and listen to the song of that siren till she transforms us into beasts. Is this the part of wise men, engaged in a great and arduous struggle for liberty? Are we disposed to be of the number of those who, having eyes, see not, and, having ears, hear not, the things which so nearly concern their temporal salvation? For my part, whatever anguish of spirit it may cost, I am willing to know the whole truth; to know the worst, and to provide for it.

I have but one lamp by which my feet are guided, and that is the lamp of experience. I know of no way of judging of the future but by the past. And judging by the past, I wish to know what there has been in the conduct of the British ministry for the last ten years to justify those hopes with which gentlemen have been pleased to solace themselves and the House. Is it that insidious smile with which our petition has been lately received? Trust it not, sir; it will prove a snare to your feet. Suffer not yourselves to be betrayed with a kiss. Ask yourselves how this gracious reception of our petition comports with those warlike preparations which cover our waters and darken our land. Are fleets and armies necessary to a work of love and reconciliation? Have we shown ourselves so unwilling to be reconciled that force must be called in to win back our love? Let us not deceive ourselves, sir. These are the implements of war and subjugation; the last arguments to which kings resort. I ask gentlemen, sir, what means this martial array, if its purpose be not to force us to submission? Can gentlemen assign any other possible motive for it? Has Great Britain any enemy, in this quarter of the world, to call for all this accumulation of navies and armies? No, sir, she has none. They are meant for us: they can be meant for no other. They are sent over to bind and rivet upon us those chains which the British ministry have been so long forging. And what have we to oppose to them? Shall we try argument? Sir, we have been trying that for the last ten years. Have we anything new to offer upon the subject? Nothing. We have held the subject up in every light of which it is capable; but it has been all in vain. Shall we resort to entreaty and humble supplication? What terms shall we find which have not been already exhausted? Let us not, I beseech you, sir, deceive ourselves. Sir, we have done everything that could be done to avert the storm which is now coming on. We have petitioned; we have remonstrated; we have supplicated; we have prostrated ourselves before the throne, and have implored its interposition to arrest the tyrannical hands of the ministry and Parliament. Our petitions have been slighted; our remonstrances have produced additional violence and insult; our supplications have been disregarded; and we have been spurned, with contempt, from the foot of the throne! In vain, after these things, may we indulge the fond hope of peace and reconciliation. There is no longer any room for hope. If we wish to be free-- if we mean to preserve inviolate those inestimable privileges for which we have been so long contending--if we mean not basely to abandon the noble struggle in which we have been so long engaged, and which we have pledged ourselves never to abandon until the glorious object of our contest shall be obtained--we must fight! I repeat it, sir, we must fight! An appeal to arms and to the God of hosts is all that is left us!

They tell us, sir, that we are weak; unable to cope with so formidable an adversary. But when shall we be stronger? Will it be the next week, or the next year? Will it be when we are totally disarmed, and when a British guard shall be stationed in every house? Shall we gather strength by irresolution and inaction? Shall we acquire the means of effectual resistance by lying supinely on our backs and hugging the delusive phantom of hope, until our enemies shall have bound us hand and foot? Sir, we are not weak if we make a proper use of those means which the God of nature hath placed in our power. The millions of people, armed in the holy cause of liberty, and in such a country as that which we possess, are invincible by any force which our enemy can send against us. Besides, sir, we shall not fight our battles alone. There is a just God who presides over the destinies of nations, and who will raise up friends to fight our battles for us. The battle, sir, is not to the strong alone; it is to the vigilant, the active, the brave. Besides, sir, we have no election. If we were base enough to desire it, it is now too late to retire from the contest. There is no retreat but in submission and slavery! Our chains are forged! Their clanking may be heard on the plains of Boston! The war is inevitable--and let it come! I repeat it, sir, let it come.

It is in vain, sir, to extenuate the matter. Gentlemen may cry, Peace, Peace-- but there is no peace. The war is actually begun! The next gale that sweeps from the north will bring to our ears the clash of resounding arms! Our brethren are already in the field! Why stand we here idle? What is it that gentlemen wish? What would they have? Is life so dear, or peace so sweet, as to be purchased at the price of chains and slavery? Forbid it, Almighty God! I know not what course others may take; but as for me, give me liberty or give me death!

Having read Patrick Henry's great words, another long time reader of TILB said in an email to investmentlb@gmail.com, "A different breed TILB, a different breed."

Indeed.

We find it quite remarkable how many of our founding fathers feared government. Statement after statement of the evils of government permeate their public words and actions. They took that healthy fear and built a system designed explicitly to limit government, but 230 years of bastardization later and even a seemingly foolproof system is struggling under the weight of power hungry bureaucrats.

While today the revolutionary fire in America burns dimmer on the whole, it sits on a tinderbox shielded by misplaced patience. As patience with stolen liberties and a future of debt-burdened national servitude awaits us, the need for action grows greater by the day. We are treated by our government in much the same way Henry complains of the British Ministry treating Americans. Our war, of course, is not a war of flesh, but a war of principle, a war of oppression, a war to recover the ideals on which our nation was built and in which its greatness took root. Hope in and patience with government are our greatest obstacles in the struggle to break free from the oppression of the ruling elite whom daily seem to take our liberties and labors and use them for their own power hungry purposes.

May we live to see the day when we revert back to a high regard for true personal freedom and liberty. Government, at its best, provides protection of personal freedom. Alas, government's ever increasing size is inherently the enemy of that freedom it is designed to cherish. We observe that our government does not seem to be shrinking. Liberty lovers should readily understand that what they cherish is under a powerful attack and persistent oppression.

Stand by quietly and watch your freedom evaporate. "Hope" will not solve the ills we suffer from. Patrick Henry understood that clearly 230 years ago and TILB believes the lesson rings true today.

Equality Of Outcome vs. Equality Of Choice

Dr. Thomas Sowell, who has defined political society (and to a certain extent, society at large) in two buckets: the Constrained vision and the Unconstrained vision, gives a wonderful interview to the Hoover Institute. We believe that the Unconstrained vs. Constrained vision can be summarized simply as equality of outcome vs. equality of choice. We pick the latter.

In a bit more depth, the Constrained view is that man is flawed and that those flaws are generally fixed as part of human nature. As such, we need a government that is constrained in its powers in order to reflect and protect against the fact that flawed people (i.e., humans) will run the system and that history has shown power corrupts and that corrupt people are often drawn to power. In essence, that because there is no political messiah and that even if there were a perfect leader he/she would someday die and those powers will inevitably fall into corrupt hands, we must build a system that sustainably and structurally separates powers.

The Unconstrained view is that man's flaws are generally man-made and solvable. To the extent we have had flawed societies in the past, it is because we have not tried hard enough, had an expansive enough vision, or perhaps simply had the right leaders. That government should be as powerful as it needs to be in order to improve the lot of its people through dictum. That improved leaders can solve many of human nature's problem through the implements of their leadership and thusly that human nature can be changed (that it is not fixed). In essence, there are political messiahs and we must seek to find these benevolent, perfect leaders in order for their vision to improve human nature.

Some of the highlights include:

* Defense: Sowell's statement on why defense spending deserves a priority position within broader governmental spending, "[that] recognizes that you must survive before you do anything else." This is a classic Constrained vision of the world, which is that history shows that nations will war, thusly disarmament is not a sound approach because it imperils survival.

* Intellectualism: Why do modern intellectuals adhere so strongly to the Unconstrained vision? Dr. Sowell postulates that "they imagine that good people like themselves can make this thing go, that if it hasn't worked in the past it's only because we haven't had the right people [leading]. In other words, communism would have worked if it hadn't been for Stalin." In essence, that we have had the wrong leaders and that the collective decisions of humanity lead to worse outcomes than the targeted decisions of a select few.

* War and Peace: "You can take this back to the Federalists when they said, 'why do we think the thirteen colonies would make war on each other if they're not united,' and the answer was, "because that's what countries have always done. It's not just war, It's poverty. It's crime. All of those are things that people with the unconstrained vision feel needs explaining." He goes on to say, [paraphrasing] that that is what people with the Unconstrained vision feel needs explaining (the "why" of why do wars, crime and poverty happen), whereas Constrained vision people say these are natural outcroppings of man's nature and that we should focus on creating a structure that is most likely to sustain peace, law and order, and morality rather than trying to "cure" man of his nature.

* Obama: On why Obama represents the most clear view of the Unconstrained vision in the history of American politics. "Even FDR pulled back on some things. But Obama...he really does have the Unconstrained vision; which is an elitist vision. It says, 'I know what is best to be done and I will do it.' When he says, 'I will change the world,' you realize this is a man that has actually accomplished nothing other than advancing his career through rhetoric. It remains me of a sophomore in college who thinks he can run the world." As Charlie Munger so wisely and frequently says at the Berkshire Hathaway annual meetings, I have nothing to add.

* One bonus quote from Dr. Sowell, which explains why we here at TILB effectively chose None Of The Above this past November, "people ask me why am I going to vote for McCain rather than Obama, I answer that it's because I prefer disaster to catastrophe." Indeed.

Dr. Sowell goes on to apply this to modern politics, the judicial system and more.

Watch, enjoy, learn.



[Hat tip: @mymoneyshrugged