Americans Will Need 'Black Markets' To Survive
by
Brandon
Smith
Alt-Market.com
Recently
by Brandon Smith: The
Essential Rules of Tyranny
As Americans,
we live in two worlds; the world of mainstream fantasy, and the
world of day-to-day reality right outside our front doors. One disappears
the moment we shut off our television. The other, does not…
When dealing
with the economy, it is the foundation blocks that remain when the
proverbial house of cards flutters away in the wind, and these basic
roots are what we should be most concerned about. While much of
what we see in terms of economic news is awash in a sticky gray
cloud of disinformation and uneducated opinion, there are still
certain constants that we can always rely on to give us a sense
of our general financial environment. Two of these constants are
supply and demand. Central banks like the private Federal Reserve
may have the ability to flood markets with fiat liquidity to skew
indexes and stocks, and our government certainly has the ability
to interpret employment numbers in such a way as to paint the rosiest
picture possible, but ultimately, these entities cannot artificially
manipulate the public into a state of demand when they are, for
all intents and purposes, dead broke.
In contrast,
the establishment does have the ability to make specific demands
or necessities illegal to possess, and can even attempt to restrict
their supply. Though, in most cases this leads not to the control
they seek, but a sudden and sharp loss of regulation through the
growth of covert trade. The people need what the people need, and
no government, no matter how titanic, can stop them from getting
these commodities when demand is strong enough.
This process
of removing necessary or desirable items from a trade environment
leads inevitably to counter-prohibition often in the form of strict
cash transactions, barter markets, or “black markets” as they are
normally derided by those in power. The problem for economic totalitarians
is that the harder they squeeze the masses, the more intricate the
rebellion becomes, especially when all they want is to participate
in free markets the way our forefathers intended.
The so called
“drug war” is proof positive of the impossibility of locking down
a product, especially one that has no moral bearing on the people
who are involved in its use. Only when a considerable majority of
a populace can be convinced of the inherent immoral nature of an
illicit item can its trade finally be squelched. During any attempt
to outlaw a form of commerce, a steady stream of informants convinced
of their service to the “greater good” is required for success.
Dishonorable governments, therefore, do not usually engage in direct
confrontation with black markets. Instead, they seek to encourage
the public to view trade outside mainstream legal standards as “taboo”.
They must condition us to react with guilt or misplaced righteousness
in the face of black market activity, and associate its conduct
as dangerous and destructive to the community, turning citizens
into an appendage of the bureaucratic eye.
But, what
happens when black markets, due to calamity, become a pillar of
survival for a society? What happens when the mainstream economy
no longer meets the available demand? What happens when this condition
has been deliberately engineered by the power structure to hasten
cultural desperation and dependence?
In this event,
black markets not only sustain a nation through times of weakness,
but they also become a form of revolution; a method for fighting
back against the centralization of oppressive oligarchies and diminishing
their ability to bottleneck important resources. Black markets are
a means of fighting back, and are as important as any weapon in
the battle for liberty. Here are just a few reasons why such organizational
actions may be required in the near future…
The Mainstream
Economy Is Slowly Killing Us
There are,
unfortunately, some Americans out there who have not caught on yet
to the grave circumstances in which we live. Obviously, the stock
market seems to have nearly recovered from its epic collapse in
2008 and 2009, and employment, according to the Labor Department,
is on the mend. The numbers say it all, right? Wrong! The numbers
say very little, especially when they are a product of “creative
mathematics”.
Despite the
extreme spike in the Dow Jones since 2010, and all the talk of recovery,
what the mainstream rarely mentions are the details surrounding
this miraculous return from the dead for stocks.
One of the
most important factors to consider when gauging the health of the
markets is “volume”; the amount of shares being traded and the amount
of investors active on any given business day. Since the very beginning
of the Dow’s meteoric rise, the markets have been stricken with
undeniably low volume interspersed with all too brief moments of
activity. In fact, this
past January recorded the lowest NYSE volume since 1999.
Market volume
has tumbled over 20% since last year, and
is down over 50% from 2008 when the debt implosion began.
So then, if
trade is sinking, why has the Dow jumped to nearly 13,000? Low volume
is the key. In a low volume market, less individual investors are
present to counteract the buying and selling of larger players,
like international banks. When this happens, the big boys are able
to trigger market spikes, or market drops, literally at will. Add
to this the high probability that much of the stimulus that the
Federal Reserve has regurgitated into the ether probably ended up
in the coffers of corporate banks which then used the funny money
to snap up equities, and presto! Instant market rally! But, a rally
that is illusory and unstable.
Improving
employment numbers are yet another financial hologram. As most of
us in the Liberty Movement are well aware, the Labor Department
does not calculate true unemployment in the U.S. Instead, it merely
calculates those people who currently receive unemployment benefits.
Once a person hits the extension limit (99 weeks in many states)
on his benefits, he is removed from the rolls, and is no longer
counted in the “official” unemployment percentage. While Barack
Obama and MSM pundits are quick to point out the drop in jobless
to 8.3%, what they conveniently fail to mention is that MILLIONS
of Americans have been unemployed for so long that they have been
removed from the statistics entirely, and this condition is what
has caused the primary fall in jobless percentages, not burgeoning
business growth.
Roughly 11
million Americans who are jobless have nonetheless been
excluded from the statistical government tally because of a
loss of benefits.
According
to the Congressional Budget Office, over 40% of the currently
unemployed have been so for over 6 months. It also points out that
America is suffering the worst case of long term unemployment since
the Great Depression.
More than
10.5 million people in the U.S. also receive disability payments,
which automatically removes them from the unemployment count, making
it seem as though jobs are being created, rather than lost.
Around 8.2
million Americans only work part time, meaning they work less hours
than are generally considered to be necessary for self-support.
These people are still counted as “employed” even if they work a
few hours a week.
True unemployment,
according
to John Williams of Shadowstats, is hovering near 23%.
Combine these
circumstances with the ever weakening dollar, price inflation in
foods and other commodities, and rocketing energy costs, and you
have an economy that is strangling the life out of the middle-class
and the poor in this country. It is only a matter of time before
the populace begins searching for alternative means of subsistence,
even if that entails “illegal” activities.
Government Cracking Down On Freedom Of Trade
I was recently
walking through the parking lot of a grocery store and ran into
a group of women huddled intently around the back of a mini-van.
One of the women was reaching into a cooler and handing out glass
containers filled with milk. I approached to ask if she was selling
raw milk, and if so, how much was she charging. Of course, they
turned startled and wide eyed as if I had just stumbled upon their
secret opium ring. Somehow it had slipped my mind how ferocious
the FDA has become when tracking down raw milk producers. The fact
that these women were absolutely terrified of being caught with
something as innocuous as MILK was disturbing to me. How could we
as a society allow this insanity on the part of our government to
continue?
That moment
reminded me of the utter irrelevance of petty law, as well as the
determination of human beings to defy such law.
The Orwellian
hammer has been thrust in the face of those who trade in raw milk,
organic produce, and herbal supplements, while small businesses
are annihilated by government dues and red tape. In the meantime,
law
enforcement officials have been sent strapped to shut down children’s
lemonade stands (no, seriously).
Government
legislation which would give the FDA jurisdiction over personal
gardens has been fielded. Retail gold and silver purchases of over
$600 are now tracked and taxed. The
IRS even believes it has the right to tax barter exchanges,
even though they do not explain how bartered goods could be legally
qualified as “income”, or how they can conceive of ever being able
to trace such private trade.
Want to choose
what kind of currency you would like to use to protect your buying
power? Not if the Department Of Justice’s Anne Tompkins has anything
to say about it. After the
railroading of Liberty Dollar founder Bernard von NotHaus, she
stated:
“Attempts to
undermine the legitimate currency of this country are simply a unique
form of domestic terrorism…”
“While these
forms of anti-government activities do not involve violence, they
are every bit as insidious and represent a clear and present danger
to the economic stability of this country,” she added. “We are determined
to meet these threats through infiltration, disruption, and dismantling
of organizations which seek to challenge the legitimacy of our democratic
form of government.”
As our economic
situation grows increasingly precarious in this country, more and
more people will turn towards localized non-corporate, non-mainstream
business methods and products. And, the government will no doubt
attempt to greatly restrict or tax these alternatives. This mentality
is driven in part by their insatiable appetite for money, but mostly,
it’s about domination. They do what they do because they fear decentralized
markets, and the ability of the citizenry to conceive of choices
outside the system. Slaves are not supposed to choose the economy
they will participate in…
A “black market”
is only a trade dynamic that the government disapproves of, and
the government disapproves of most things these days. Frankly, its
time to stop worrying about what Washington D.C. consents to. They
have unfailingly demonstrated through rhetoric and action that they
are not interested in the fiscal or social health of this nation,
and so, we must take matters into our own hands.
Black Market Advantages
If the events
in EU nations such as Greece, Spain, and Italy are any indication,
the U.S., with its massive debt to GDP ratio (real debt includes
entitlement programs), is looking at one of two possible scenarios:
default, austerity measures, and high taxes, or, hyperinflation,
and then default, austerity measures, and high taxes. In the past
we have mentioned barter networking and alternative market programs
springing up in countries like Greece and Spain allowing the people
to cope with the faltering economy. Much of this trade is done away
from the watchful eyes of government, simply because they cannot
afford the gnashing buffalo-sized bites that bureaucrats would take
from their savings in the process. When a government goes rogue,
and causes the people harm, the people are in no way obligated to
continue supporting that government.
Black markets
give the citizenry a means to protest the taxation of a government
that no longer represents them. In a country stricken with austerity,
these networks allow the public to thrive without having to pay
for the mistakes or misdeeds of political officials and corporate
swindlers. In a hyperinflationary environment, black markets (or
barter markets that have been deemed unlawful), can be used to supplant
the imploding fiat currency altogether, and energize community markets
that would otherwise be unable to function. Ultimately, black markets
feed and clothe the grassroots movement towards economic responsibility,
and every man and woman with any sense of independence should rally
around this resource with the intention to fight should it ever
be threatened.
“Legality”
is arbitrary in the face of inherent conscience, or what some call
“natural law”. Without arbitrary legality, and unjust and unwarranted
regulation, many federal alphabet agencies would not exist, including
the FDA, the IRS, the EPA, the BLM, etc. These institutions do not
matter. What they say has no meaning. What matters is what is honorable,
what is factual, and what is right. Our loyalty, as Americans, is
to our principles and our heritage. Beyond that, we don’t owe anyone
anything. A black market in one place and time is a legitimate market
in another. For now, private localized trade is able to flow with
only minor interference, but there will come a day when even the
most practical and harmless personal transactions will be visited
with administrative reproach and vitriol. Alternative market champions
will be accused of “extremism”, and undermining the mainstream economy.
We will be vilified as separatists, isolationists, terrorists, and
traitors. I believe it will be far more surreal than what we can
possibly imagine now.
They are welcome
to call us whatever they like. Honestly……who cares? Let the paper
pushers do their angry little dance. The goal is freedom; in life,
in politics, and in trade. If we do not change how this country
does business ourselves, the results will be far more frightening
than any government agent at our doorstep, and the costs will be
absolute…
Reprinted
with permission from Alt-Market.com,
a barter networking and informational website.
March
3, 2012
Brandon
Smith [send him mail]
is founder of the Alternative Market Project (www.alt-market.com)
as well as the head writer and co-founder of Neithercorp Press.
He specializes in macroeconomic analysis as well as studies in mainstream
media disinformation, and is now focusing on the creation of a national
network of barter markets designed to insulate and protect local
economies from the inevitable collapse of the current unsustainable
fiat system.
Copyright
© 2012 Alt-Market.com
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