On the Supply Objection to the Gold Standard

Since the gold standard was abandoned in 1971, many people have sought to return to such a standard in order to combat inflation and rein in central banks. Keynesians and others who support fiat currency and central banking present several criticisms of this approach. One of these criticisms is particularly nonsensical, but occurs with increasing frequency: that there is not enough gold in the world to back the quantity of currency in existence, and thus returning to gold would set off a deflationary spiral while destroying several industries that depend on gold. Let us address this question from a scientific standpoint, return to economic matters, and address the claimed effects.

Physical Limits

Let us begin by finding the absolute limit of what gold can do for a monetary system. As the United States dollar is the world reserve currency at the time of this writing, it makes sense to use it as the currency to peg to gold. The smallest unit of gold is the atom, and the smallest unit of dollars is the penny. The most extreme possible case would be to set one penny equal to one atom of gold. What would this look like in practice? Any basic text on chemistry can lead us to the answer. The only stable isotope of gold is Au-197, and its molar mass is 196.967. This means that in about 197 grams of gold, or 6⅓ troy ounce coins of the type minted by many governments and private mints, there will be Avogadro’s constant of atoms, which is 6.022140857×10^23. Setting one penny equal to one atom of gold, this is $6.022×10^21 or $6.022 sextillion easily fitting in one’s hand.

This amount of money is so large that people cannot truly understand it due to the lack of a frame of reference for it. Few people will handle anything beyond millions of dollars at any point in their lives. Large businesses may deal with billions of dollars. The most powerful governments have budgets in the trillions of dollars. According to a History Channel documentary, the dollar value of the entire planet is in the quadrillions of dollars, checking in at $6,873,951,620,979,800, and subtracting Earth’s gold content leaves $6,862,465,304,321,880. As the limit of one penny per atom allows one to hold the current market value of a million Earths in one’s hand, it is clear that science imposes no physical limit to make a gold standard infeasible.

Another useful exercise is to try setting the value of all available gold equal to the value of the rest of the planet. The total available gold content at present amounts to 186,700 metric tons. Defining this amount of gold to be worth the above figure of $6,862,465,304,321,880 gives a gold price of $36,756.64 per gram or $1,143,259.40 per troy ounce. This is very expensive by current standards, but current standards do not come close to economizing the entire planet. The actual price would therefore be far lower than this, but this exercise is useful for setting an upper bound.

Current Prices

Perhaps critics of restoring sound money mean to say that the gold standard could not be reintroduced at current gold prices. In this, they are correct; at the time of this writing, gold trades at $1,284 per troy ounce. Multiplied by the 186,700 metric tons of gold available, this gives $7.707 trillion of gold-backed currency, which is not enough for the United States economy, let alone the entire world. The solution, then, is to devalue fiat currencies to fit the available gold supply. According to the CIA World Factbook, the gross world product in 2015 was $75.73 trillion. Covering this with the available gold gives a gold price of $12,616.75 per troy ounce, which is an order of magnitude above current prices, but not outlandish.

Possible Effects

Gold has gained several practical applications in recent times, particularly in medicine and technology. Critics claim that returning gold to monetary use would devastate these industries, along with the jewelry industry. In each case, critics are overreacting. Research toward creating substitutes which work nearly as well in electronics is promising. Gold salts in medicine have numerous side effects, monitoring requirements, limited efficacy, and very slow onset of action. Finally, there is no particular reason why we should care about an industry that produces impractical novelties to the extent of protecting it through fiat currency. It would be better to free up jewelers to do something more productive and helpful to others.

The other major criticism is that returning to a gold standard will cause a harmful episode of deflation. Paul Krugman writes,

“[W]hen people expect falling prices, they become less willing to spend, and in particular less willing to borrow. After all, when prices are falling, just sitting on cash becomes an investment with a positive real yield – Japanese bank deposits are a really good deal compared with those in America — and anyone considering borrowing, even for a productive investment, has to take account of the fact that the loan will have to repaid in dollars that are worth more than the dollars you borrowed.”

But those who are less willing to spend or borrow are necessarily more willing to save, which will allow them to spend more later or fund new businesses and investments. There is also the matter that one cannot hold out forever; one must eventually purchase goods and services. That the technology industry thrives despite producing the most deflationary goods shows that there is nothing harmful about this. It turns out that the value of using a current computer over the next year is worth more than holding out for a more powerful computer next year. It is also true that holding out for more food next month does not work if one cannot survive until then without food now. One may object that this would concentrate wealth in the hands of those who can hold out, but this is a feature rather than a bug because it redistributes resources to those who have been good stewards of resources.

Those who have already borrowed face a larger debt burden in a deflationary environment, and though creditors experience an equal gain, creditors are unlikely to increase their spending to offset the reduced spending of debtors. But again, this is a feature rather than a bug because it incentivizes saving over borrowing while pushing some debtors into default, thus punishing unwise lenders with loss of principal and unwise borrowers with bad credit ratings.

With falling prices, profits and wages usually have to fall as well. But profits are a function of prices and costs, which are also prices. This leaves profits largely unaffected on a percentage basis. Wages are prices as well, and the need to cut nominal wages in a deflationary environment could both incentivize firms to release their worst employees and provide pushback against minimum wage laws.

Finally, there is the belief that the sort of deflation that may be caused by returning to gold would cause a recession. But the above rebuttals deprive this problem of any mechanism by which it might occur. In fact, the empirical evidence suggests that deflation is linked to economic expansion, as occurred in the United States during the 19th century. The only period in which a correlation between deflation and depression does appear is the Great Depression (1929-34), and this may be linked to the central bank policies of the 1920s, which fraudulently inflated the money supply beyond the set gold exchange rates of the time.

Conclusion

While a free market in money would be the most desirable condition from a libertarian perspective, returning to a gold standard is a superior option to that of allowing fiat currency and central banking to continue as they are. The concerns about a lack of gold supply for returning to a gold standard are without merit, and the fears of deflation and devastation to industry are unfounded.

Book Review: Level Up Your Life

Level Up Your Life is a book about self-improvement and adventure by American entrepreneur, fitness instructor, publisher, and writer Steve Kamb. The book shows people how to define goals and use a game setup of experience points and levels to accomplish those goals while avoiding various pitfalls along the way. The book is divided into six sections, each of which contains three to five chapters.

Kamb begins with a brief introduction, describing several of his most interesting adventures as well as the life he led before deciding to change his life. He talks about the online community he founded about changing one’s life to be more active and adventurous, then invites the reader to join.

The first section begins by going into greater detail about Kamb’s own experiences and backstory than did the introduction. The middle is a warning about getting stuck in the research and planning stages of an adventure without ever actually going on the adventure. The final chapter of this section is an exhortation to stop waiting and thinking you cannot live the life you want to live.

Getting started on a hero’s journey is the subject of the second section. Kamb begins by laying out the basic story arc that almost all heroic characters follow. Next, he asks the reader to describe one’s normal life and then create the superhero alter-ego that one wishes to become. The following chapter presents several common excuses that people use to justify not living a more interesting life and rebuts each of them. The sixth chapter contains advice on dealing with people who offer discouragement and resistance to one’s ambitions. Kamb ends this section by explaining how game mechanics such as experience points and leveling can be used in real life to help one learn skills and achieve goals.

In the third section, Kamb discusses how to set up one’s Game of Life. He lays out the rules that his group uses, but one can create one’s own list. The ninth chapter gives examples of character classes from role-playing games and how they might translate into real-world skill sets. The point of the chapter is to describe one’s ideal leveled-up character. The next chapter explores various quests that one could pursue in order to get from one’s current state to one’s ideal state. Kamb ends this section by sharing how he used the methods from the previous two chapters in his own quest.

The fourth section begins with more discussion of experience points and levels, then proceeds to discuss the need to self-impose both positive and negative reinforcement in order to cultivate discipline. An excellent bit of advice is given here: rewarding yourself should take the form of something that will aid in one’s quest, not something immediately pleasurable that will hinder one’s efforts going forward. In the fourteenth chapter, Kamb explains the importance of willpower. He suggests altering one’s environment to make pursuing one’s goals require less willpower and working against those goals require more. Following this, the need to create flow and momentum in one’s life is explained. The section concludes with a chapter about team-building that describes the roles of mentor, peer, trainee, and wildcard. Finding people to fill each of these roles helps make a quest more productive and interesting.

The fifth section uses the examples of four well-known fictional characters and how they overcame adversity in their stories to discuss how to prepare the body and mind for any adventure, nurture an adventurous spirit, and make necessary sacrifices in pursuit of success. The stories of Bruce Wayne, Jason Bourne, Indiana Jones, and Katniss Everdeen contain a multitude of lessons, making this the longest section of the book.

In the last section, Kamb reminds the reader that tomorrow is not guaranteed and whatever is worth doing should be started now. He encourages those who have completed their personal quests to share their stories and knowledge so that less experienced people can learn from them. The final chapter encourages those who have done great deeds to avoid resting on their laurels and move on to another adventure. The book concludes with a list of resources, acknowledgments, and a repetition of the offer to join Kamb’s online community.

Level Up Your Life is one of the better self-help books out there, and the online community is an added bonus. The greatest criticisms of the book would be that it is too much of an advertisement for the online community, and that while it is excellent for someone who is enduring life but not enjoying it, it is far less useful for someone who already uses similar methods with great success in some areas of life but is held back by failures in other areas. Even so, Kamb has created a book that is worth reading (and a website worth visiting).

Rating: 4/5

Book Review: The Age of Jihad

The Age of Jihad is a book about political unrest in the Middle East by Irish journalist Patrick Cockburn. The book is a compilation of his notes and articles over a 20-year period (1996-2016) while traveling throughout the Middle East. Cockburn did direct reporting where possible, and relied upon first-hand accounts when venturing into certain places was too dangerous.

Cockburn begins with his reporting from Afghanistan in late 2001 as the United States began its intervention to remove the Taliban from power. Next, he shares his experiences of Iraq under sanctions from 1996, 1998, and 2001, followed by his experiences there during the American occupation from 2003 to 2010. This is followed by his next forays into Afghanistan from 2009 to 2012.

The next part of the book focuses on the Arab Spring and the events that followed, with particular emphasis on countries in which the rulers were not quickly deposed. Cockburn begins with the Libyan Civil War of 2011 that removed Muammar Gaddafi from power, along with the difficulties that followed. Sectarian violence in Yemen from 2009 to 2015 and the failed uprising in Bahrain in 2011 each get a chapter.

The last part of the book covers recent developments in Syria and Iraq. First, the Arab Spring in Syria and its development into the Syrian Civil War from 2011 to 2014 is discussed in two chapters. Another two chapters are devoted to the contemporaneous destabilization of Iraq. This culminates in the rise of ISIS and the establishment of the Caliphate, in and near which the final four chapters take place.

The book gives important insight into just how terrible daily life is for people in war-torn lands, including the near-absence of basic utilities, shortages of essential items, rampant unemployment, and fear of mistreatment both from rebel groups and one’s own government. The book is filled with anecdotes of behavior which have not been seen since the Renaissance in the West, and knowledge of this behavior helps to explain animosity toward migrants from that region. The reader may be familiar with some of the events described, but almost anyone would find new information somewhere in the book.

One comes away from the book with a sense that both Western and regional powers had to be trying to perform so poorly. Western powers sought to punish Saddam Hussein without regard for the Iraqi people who bore the brunt of sanctions. They ignored cultural attitudes and sectarian divisions while turning a blind eye to mass corruption that greatly weakened the nation-building projects in Afghanistan and Iraq. They removed dictators who were stabilizing forces, thus creating power vacuums which were filled by al-Qa’ida and its affiliates. It is difficult to be so maliciously incompetent without intending to do so.

Overall, Cockburn does an excellent job of conveying the reality on the ground in most of the conflicts in the War on Terrorism and the Arab Spring. The only real improvement would be to add sections on recent events in Egypt and Tunisia, which only get passing mentions as sources for jihadists in other places. The Age of Jihad belongs on the bookshelf of any serious student of recent history, the Middle East, revolutions, war, and/or the effects of foreign intervention.

Rating: 5/5

How The Left Can Still Win The 2016 Election

So, dear leftist, it is 2017. The current year, as it were. Donald J. Trump occupies the Oval Office, and the “her” you were with does not. All of the accusations of bigotry and threats of violence you could muster were simply not enough to sway people who were hurting economically and were tired of being talked down to by the likes of you. Your massive street demonstrations against the election result after many of you never made it to the polls only earned you derision and scorn. Your plan to throw the Electoral College to the House of Representatives by convincing electors to vote against the results of democratic elections in their states actually cost the Democratic candidate more electoral votes than her opponent. Your protests at the certification and the cabinet hearings have only gotten you physically removed from the Capitol building. Your actions at the inauguration have resulted in many of you facing significant prison time for felony rioting. I know it must be difficult to lose one dream (socialism) after another (the first female president), but all hope is not lost. You still have options, and believe it or not, this libertarian reactionary is here to help.

If you wish to live in a world in which Hillary Clinton, Bernie Sanders, or some other left-wing candidate won the 2016 election, your only options now are to go back in time and alter the results or to go to an alternate universe in which the person of your choice is President. These could very well be equivalent, for reasons we will discuss later. Of course, this amounts to election tampering and voter fraud, but when has that ever bothered the left? Everyone knows that you only really believe in democracy when it gives results that you like. Although no one has yet accomplished backward time travel or inter-universal travel, general relativity does appear to allow for it. You are going to need far more knowledge of mathematics and science than your major in gender studies and minor in queer literature gave you, but why let this stop you? You are a special snowflake, and you can do anything if you just believe in yourself.

You may encounter difficulties in obtaining funding, as Trump and Congressional Republicans would never appropriate funds for their own retroactive removal from power. Being out of political power, you will have to subject yourself to market forces by funding your project through voluntary means and providing investors with a reasonable return. Being a productive capitalist will go against your beliefs, but consistency is of no concern for a leftist, especially when serving the greater purpose of removing “Literally Hitler” from power.

There are four ways to accomplish time travel into the past, go to another universe, or both: faster-than-light travel under certain conditions, use of cosmic strings, use of black holes, and use of traversable wormholes. Each of these methods requires a form of exotic matter with negative energy density to avoid infinities and imaginary numbers in the calculations, but it may be that the insanity of leftist thought is caused by the presence of such substances in the brain. Additionally, the Casimir effect might be able to produce the negative energy density needed to power a time machine or traversable wormhole. If finding what you need becomes a problem, just demand that the exotic matter check its privilege. I am sure that it will do as you ask, since reality is just a social construct for you.

On second thought, the time travel idea might not work. If you go back in time and make a Democrat win the election, you will remove the reason for time traveling, along with the knowledge that there ever was a reason. This means that you will not time travel because you will have no motivation for creating your time machine, thus undoing all of your work. Another possible mechanism for the avoidance of temporal paradoxes is the many-worlds interpretation. In this view, you would not be preventing Trump’s election in this universe, but in another parallel universe that is branched off from this universe by your interference.

We are left with the idea of using a traversable wormhole to go to another universe where you can live under your leftist ruler of choice. Alternate reality may seem like a stretch, but you already live there in your mind; we are just making it official. I know, I know, you want to stay and fight. But given that the most radical elements of your coalition are going to keep escalating their violence until most non-leftists cheer a brutal crackdown on all of you, and none of you seem willing to rein them in, you are not safe here.

I ask only one thing in return. In whatever alternate universe you choose or create, there will likely be people there who disagree with you. Please let them travel in the opposite direction through whatever portal you open. You are getting your own universe; at least give us this one (or whatever new one is formed by their exodus here) in return. You say you believe in fairness and justice, and what could be more fair and just than a one-for-one trade? And should not an open border work both ways?

But let us be realistic. The technology required to do this is decades away at the earliest, and may turn out to be impossible. So sit back and enjoy the Trumpenführer’s time in office. There are many reasons to oppose him, but that is true of every President. Perhaps the institution itself is the real problem, but you are a leftist, so that is a bridge too far.

Book Review: The Invention of Russia

The Invention of Russia is a book about the history of the Soviet Union and the formation of modern Russia by Russian journalist Arkady Ostrovsky. The book focuses on the time period of the rule of Mikhail Gorbachev, Boris Yeltsin, and Vladimir Putin. Special attention is paid to the role played by the media in shaping narratives and steering the population from the Soviet era to the present.

The prologue deals with the author’s experience during and immediately after the assassination of Boris Nemtsov on February 27, 2015. He briefly overviews events over the past few decades that factored into Nemtsov’s murder, and the author’s experiences through those years are also discussed.

The book proper is divided into two parts, each with five chapters. The division between the parts is roughly set at the 1993 Russian constitutional crisis. The first chapter begins with the end of the Soviet Union, then backtracks to give the reader a sense of Soviet history up to Gorbachev’s rise to power, with emphasis on the events that foreshadowed it, such as de-Stalinization and the crushing of the Prague Spring. The second chapter covers the time from Gorbachev’s appointment to the fall of the Berlin Wall. The nature of perestroika and glasnost are discussed, as well as how the Chernobyl incident affected both. Later in the chapter, Ostrovsky details the split between the liberal reformers and the Stalinist hardliners, as well as the beginnings of the privatization of state assets which formed the class of Russian oligarchs. The third chapter explores the final two years of the Soviet Union, including the economic difficulties, the rise of Yeltsin, the worries of the KGB and other elements of the Soviet power structure, the January Events in Lithuania, and the 1991 Soviet coup attempt. The fourth chapter looks at the role played by the media in the dissolution of the Soviet Union and how the generational shift from the shestidesiatniki to their children affected the changes. The Kommersant newspaper is highlighted as an example of the new Russian media, as well as one of several examples of less than honest business practices in the early 1990s, which occurred due to the moral vacuum left by communism. The fifth chapter covers the time from the end of the Soviet Union up to the 1993 crisis, with particular attention to the role of television, radio, and print media in shaping the narrative and saving Russia from another Communist takeover.

The sixth chapter continues the discussion of the 1993 crisis, then moves on to the creation of NTV, Russia’s first Western-style television station. Of course, NTV had to compete with Channel One and other state media, which caused tensions with the state when NTV covered the first Chechnya war from the Chechen point of view. The chapter concludes with the 1996 election, in which the media played an essential role in bringing Yeltsin up from single-digit polling to a victory over Gennady Zyuganov, his Communist challenger. The seventh chapter continues with the events after the election, including a battle between oligarchs that turned into a political crisis, continued troubles with Chechnya, the search for a vision for Russia moving forward, and finally, the 1998 Russian financial crisis.The eighth chapter shows how this milieu combined with NATO airstrikes in Serbia and an overly propagandistic media was able to elevate an obscure KGB agent named Vladimir Putin to the presidency of Russia. The decision of most of NTV’s leadership to side against this was the beginning of the end for the station. The ninth chapter covers the time from the beginning of Putin’s rule to the invasion of Ukraine in 2014, including the ouster of several high-profile opponents of the regime, the bringing of NTV into the control of Gazprom and its gradual turn toward the regime, further trouble with Chechen terrorists, the Russo-Georgian War, and the activities of various media personalities. The tenth chapter looks at Putin’s rule in light of Russian popular culture, the rise of the bureaucrat-entrepreneur, the protests of 2011-13, the military operations in Crimea and eastern Ukraine, and the use of propaganda to manufacture support for foreign aggression.

The book is excellent at face value, providing a perspective that can only come from a native person who lived through many of the events described in the book. But it is even more valuable to libertarians and reactionaries for the obvious parallels between Russian history and the current state of affairs in the West, as well as for the warnings concerning the improper dismantling of government monopolies, as happened during the transition from the Soviet Union to modern Russia.

To conclude, the unique explanations of historical events and the focus on the role of the media in steering the ship of state make this book an invaluable addition to the collection of any activist, analyst, historian, strategist, or student.

Rating: 5/5

Neoreactionaries Are Off Their Heads About Trump

In a November 11 article at Social Matter, Michael Perilloux analyzed the election of Donald Trump with respect to its meaning for the neoreactionary movement, speaking in the voice of all neoreactionaries. In this much, he is mostly correct. But there is much to be criticized about the goals discussed therein as well as the means of reaching them. Let us examine what is wrong with the neoreactionary project and their thoughts on Trump through a libertarian reactionary examination of Perilloux’s article.

Hailing Trump

Perilloux begins with a statement of support and hope for President-elect Trump which would not be out of place in a mainstream conservative publication. Though it is debatable whether a Trump presidency or a Clinton presidency would have been better for liberty and/or Western civilization over the long term, Trump has positioned himself as an enemy of many enemies of liberty and Western decline while showing a willingness to boldly engage issues that other candidates would not touch with a ten-foot pole. For those who believe that there is hope for working within the system, this view of Trump’s victory is understandable.

However, as Perilloux correctly observes, being “a good president in the current system…will not halt the decline of America, and it will not truly Make America Great Again. If just being a good president is his game, there is no reason for us to get excited.” The neoreactionaries have a much different vision of what they hope Trump can do. But as we will see, this is where they lose their heads.

Understanding The Problem

The neoreactionary diagnosis of the problem is much like the libertarian reactionary diagnosis: the way that power works in liberal democracies is fundamentally flawed. The notions of division of power and checks and balances are false because the power is divided not among different societal organs (let alone competing non-monopolized service providers in a free market), but among different branches of the same organ. Just as one would not let one’s legs quarrel with one another lest one fall over, those who run a state apparatus have a powerful incentive not to diminish the effectiveness of said apparatus by setting different parts of it against each other. The incentives in a liberal democracy are particularly damaging; whereas a king owns the capital stock of his country and has an incentive to leave a good inheritance to one heirs, an elected official with limited terms controls only the usufruct of public lands and has an incentive to take what he can while he can. Rather than accept donations from and grant favor to special interests that help the society, elected officials are incentivized to do what is best for themselves at the expense of the citizens they are ostensibly representing. The citizens themselves are also subject to perverse incentives in a democracy, as they can vote themselves handouts from the public treasury, conflicting their personal interest with that of the nation. The citizens can also use state power to attack each other by using the ballot box to impose their criminal intent upon their fellow citizens without suffering the normal criminal penalties for engaging in such behavior oneself. The end result of subjecting everything to a vote is well described by Nick Land:

“[T]he politically awakened masses [are] a howling irrational mob, …the dynamics of democratization [are] fundamentally degenerative: systematically consolidating and exacerbating private vices, resentments, and deficiencies until they reach the level of collective criminality and comprehensive social corruption. The democratic politician and the electorate are bound together by a circuit of reciprocal incitement, in which each side drives the other to ever more shameless extremities of hooting, prancing cannibalism, until the only alternative to shouting is being eaten.”

Of course, kings can be bad and elected officials can behave better, but the incentive structures favor good monarchs and corrupt elected officials. But in either case, it is in the interest of the state to grow, so long as it does not interfere with private commerce to a sufficient extent to choke off its supply lines of tax revenue. There is nothing counter-intuitive about this, but it does require an intuition which is outside the realm of modern mainstream political thought. When we see government tyranny and deliberate cultural destruction, one need not choose between thinking that state power is bad in and of itself or asking why it is doing such things. In fact, contrary to neoreactionary thought, a thorough study of the latter leads to the former conclusion.

Two Different Ills

While it is true that elites damage and/or weaponize the civilized structure of society because it helps them to acquire and maintain power, this problem is present in monarchies as well. A truthful and inquisitive press may uncover and report embarrassing details about the king’s activities. A powerful economy that provides great wealth and options to the citizenry while creating a strong middle class may cause the public to question the king’s necessity, as occurred with the classical anarchists of the 19th century. Strong communities with strong virtuous culture may also question the need for a king to rule over them, viewing him as superfluous at best and malicious at worst. Big old families and religious leaders may challenge the king’s power and lead a rebellion against him on secular or religious grounds, respectively. A strong belief in free association can lead to anarchy, as people may seek to stop associating with the state apparatus. A strong belief in law and order can also lead to anarchy, as people may seek to hold agents of the state to the same moral standards as everyone else. The most important difference, then, is that monarchists would be more inclined to damage these societal organs while democrats would be more inclined to weaponize them. But both monarchy and democracy produce these ill effects to one degree or another, so both are enemies of liberty and restoration.1

Overthrow The Crown

In his examination of absolute monarchy, Perilloux demonstrates a complete ignorance of how challenges to monarchical power occur and succeed. When people are denied a voice and are either unable or unwilling to exit, they effect change by revolt. The royal military is generally unfit to deal with a hostile populace, as it is meant to protect the realm from foreign centralized threats, not the sort of decentralized but violent revolution which could depose a monarch by rendering his lands ungovernable. As long as the dissidents do not make the mistake of attempting to fight Goliath on Goliath’s terms, they can create a nightmare for the Crown through the use of guerrilla tactics and disappear back into the general population before they present a target to the royal military. Though the royal military has powerful weapons which are denied to the public, the use of these weapons will destroy the lives and properties of innocent people, as well as infrastructure that the Crown needs. This will only anger the public and cause fence-sitters to side with the rebels.

There was a time period in which adept rulers could shut down or co-opt conspiratorial challengers, but technology has made this all but impossible, and further technological development is both unstoppable and more helpful to rebels than to the Crown. Should one king decide to crack down, his subjects will either seek to move to a less restrictive state or, if this option is denied them, begin to revolt. If a large interest of some kind gets out of hand and the Crown tries to nationalize it, the people in charge of that interest could resist in a multitude of ways. They could shutter their business and blame the Crown, thus denying people of beloved goods and services while raising their ire against the king. They could move their headquarters to another country, thus presenting the Crown with the option of banning their products, which again raises the ire of the public. If they were desperate, they could attempt to assassinate the king to protect their business interests. Though this option was rarely used in history, it could make sense if there is nowhere to run or hide.

Though it is true that the Crown could relax and let civilization flourish as long as it maintains a decisive lead in political power, it is also trivial because advances in technology and philosophy have made divine right monarchy impossible in all but the most backward of societies (e.g. North Korea, and even that is debatable). Therefore, the libertarian reactionary must ask, given that monarchists are at a structural disadvantage against democrats, what protects your shiny new monarchy from the next wave of democratic revolutions?

Historical Errors

Perilloux writes:

“So this is the king-pill: that power we shall always have with us, and that it is thus much better for everyone to kneel, hail, and do the King’s will than to wear ourselves out in endless political conflict at the expense of our civilization.”

It is important to be careful with the word ‘always,’ for it denotes a very, very long time. The king-pill is a poison to those who swallow it, trapping them in an outlook of historical determinism that lacks both intellectual courage and imagination. This is one of the most notable quirks of neoreaction; neoreactionaries frequently show great intellectual courage and imagination on other questions, but imagine that the future must be like the past and present with regard to the presence of state power. Though there are many reasons to prefer monarchy over democracy, both are inferior to the sort of stateless propertarian social order favored by libertarian reactionaries. This possibility breaks the false dilemma between kneeling to a king and wearing ourselves out in endless political conflict.

Perilloux responds to a likely objection by democrats by asserting that the eras of history in which power was consolidated and secure were eras in which conflict was eliminated and society was the finest. To the contrary, violent conflict was exported to the edges of the realm, which were in constant need of expansion in order to obtain the plunder necessary to sustain imperial growth. Inside the empire, violent conflict was replaced with less destructive forms of exploitation, such as taxation and conscription for public works, but these are a lesser evil rather than a good. The plunder from foreign conquests disproportionately made their way into the coffers of elites, resulting in public resentment and populist uprisings. Once those empires fell, they left many people in a condition of helplessness, as they had monopolized essential services and left their subjects unable to provide those services for themselves. Finally, it is quite strange to suggest that life was finer in the Roman Empire or the Mongol Empire than it is in contemporary Western countries, at least in terms of knowledge, wealth, life expectancy, and respect for individual rights.

Bad Kings

Unlike the neoreactionary, the libertarian reactionary has no concern with a bad king, as a stateless propertarian society has no political power to accumulate, and thus no king to worry about. Instead, the power vacuum is artificially maintained through the continuous application of defensive force. Just as matter is forcefully expelled from a vacuum chamber, the state must be forcefully expelled from a libertarian-controlled area. Once this is done, there will be attempts by government agents, warlords, terrorists, mafiosos, and lone wolf criminals to re-enter the resulting stateless society in order to establish a new coercive enterprise, just as atoms attempt to re-enter a vacuum chamber and restore atmospheric pressure. These people must be physically separated and removed from the society, just as atoms must be continually pumped out of the vacuum chamber.2

Perilloux claims that a king should turn his will toward “the improvement of our race, the betterment of our civilization, and the glory of God” without any discussion of what that means. It is unfortunate that he does not dial this in because it could mean almost anything, as race is a social construct, betterment is partly subjective, and God is not proven to exist. Hopefully, the king would have a correct understanding of genetic differences between population groups, a proper sense of what betterment means, and an eutheistic concept of God. To his credit, Perilloux does understand that it is unlikely for elites who have gained power in the current system to meet these criteria.

Libertarian reactionaries agree with neoreactionaries that “[w]ithout democracy, [the elites] would either consolidate power and refocus on the problem of how to run a civilization, or they would find themselves replaced by someone who could.” The difference is that the replacement process in a neoreactionary monarchy or oligarchy is likely to be violent, while the same process in a stateless propertarian society need only involve people choosing to do business with different service providers who are more efficient and responsive to consumer demand, with mutually assured destruction between private defense agencies and the possibility of competitors gaining market share keeping the peace.

To leave the problem of whether a proposed king would have the right vision for future generations is not only a cop-out, but an impossibility. As Friedrich Hayek explained, no central planner can have the necessary knowledge and foresight to have a proper vision for the future because a central planner does not have access to all of the decentralized information in the market economy. All that could be hoped for is a king who would oppose degenerate behaviors and ideas while keeping his hands off the market. Unlike neoreactionaries, libertarian reactionaries would not consider Trump to be good enough in this regard. Much of his core platform was abandoned by other political factions many decades ago not because elites wished to bring about decline by moving in a different direction (though this certainly motivated many of their other actions), but because protectionism and welfare statism are bad economic policies. Also, should the king’s vision be sufficiently wrong, the neoreactionary project will come to a screeching halt as the king is overthrown and democracy restored by an angry citizenry.

Statist Pathologies

Though libertarian reactionaries may sympathize with the neoreactionary view of democracy as cancer, the libertarian reactionary view is that if society is an entire human body, then any kind of state apparatus is a malignant cancer. Cancer is a corruption of healthy cells and functions, it grows at the expense of healthy cells, it can kill the body if it becomes too prominent, and it can come back with a vengeance following an unsuccessful attempt at removal. All of these aspects are true of governments as well. The effect of democracy might be better compared to the effect of HIV in humans, in that it weakens a society’s natural defenses against mob chaos, correlates strongly with degenerate behaviors, and accelerates the course of other societal ills.

What Trump Can Do

Perilloux’s assessment of Trump’s potential is generally correct. Trump does not have the “very strong, sufficiently large, and ideologically conditioned organization to pull off any serious change in Washington,” if serious change is defined as fundamentally altering the system rather than just being a breath of fresh air within it. Given his loss of the popular vote, the historical antipathy of the American people toward monarchy, the rather desolate intellectual foundation of Trumpism, and the dearth of competent statesmen who could assist him in building a new governance structure and/or dismantling the current one, there is no way that Trump could elevate himself from President to King by normal means. Even if a crisis occurs and Trump is able to convince people to entrust him with singular executive power, the tolerance of the American people for a king would not outlast whatever crisis prompted them to grant him such power. Like the dictators of the Roman Republic, Trump would be expected to divest himself of such power once the crisis has passed. In sum, he will only be able to prepare the way for someone in the future. As Perilloux suggests, Trump can do this through his deal-making abilities as long as he refrains from kicking leftists too much while they are down and engaging in sideshows which have temporarily derailed his efforts on numerous occasions thus far.

What Trump Should Do

The libertarian reactionary view of what Trump could accomplish is much different from the neoreactionary view. The neoreactionaries seek to secure a responsible long-term elite coalition, and would have us make peace with leftists in order to accomplish this goal, even if it means “mov[ing] left on key causes like economics and health care.” The libertarian reactionary understands that no such long-term coalition is possible because the elites in a natural order will not be static and the current elites are too invested in the current system to make for useful allies in a transition to a new order. Making peace with the left is exactly what the right has done for decades, and anger at the resulting decline is what allowed Trump rise to power in the first place. If he does the same, it would signal to Trump’s supporters that he has abandoned them and is just another phony politician who will say anything to get elected. That, combined with the radicalization of the Democratic base carried out by Bernie Sanders and his fellow-travelers, would make Trump a one-term President and lead the right away from both democracy and neoreaction.3

While it is true that the left will be radicalized by an overzealous Trump administration, respond by “working overtime in the areas he doesn’t directly control” now, and create more chaos and division when they regain power, this is not necessarily a negative in the long-term. The neoreactionaries seek to have the cup of violent revolution pass from them, but the libertarian reactionary understands that liberty requires revolution. For it is not only the leftist elite which must be purged, but the rank and file as well. As Hoppe so wisely said,

“There can be no tolerance toward democrats and communists in a libertarian social order. They will have to be physically separated and removed from society.”

Better to let the leftists fully reveal themselves in opposition to Trump so that we have a better idea of who must be purged. The backlash is thus not something to be avoided, but something to be encouraged.

Perilloux’s other suggestions for Trump are to

  1. rebuild the Republican Party,
  2. expose, purge, and destroy all the crooks and radicals, including non-governmental actors like the foundations and Soros,
  3. strategically change immigration policy,
  4. deconstruct leftist ideological propaganda and disable their propaganda organs and speech controls,
  5. build the wall,
  6. get the universities and media to play nice,
  7. sow dissent among the enemy, and
  8. weaken democracy.

The second, third, fourth, seventh, and eighth objectives are well worth doing and merit no critique. However, rebuilding the Republican Party is largely unnecessary at this point, unless Perilloux means to rebuild it in Trump’s image rather than being content with defending the significant majority of governorships and state legislators. Building the wall is largely infeasible and counterproductive; should matters get worse, such a barrier will be used to keep us in. There is also no way to make Mexico pay for it; the best Trump can do is to garnish their foreign aid, which means only that American taxpayers will be forced to fund one project instead of another. The immigration restrictions which are necessary to prevent Americans from being overrun by people who are demographically hostile to liberty can be accomplished through other means, such as E-verify, harsher penalties, and denying federal funds to sanctuary cities. Finally, the mainstream press and universities are never going to play nice with the right, as they are fundamentally left-wing institutions at present, and Trump has not the time or resources to alter this. All Trump will be able to do on the education front is to extricate the federal government from the student loan and grant business, encourage would-be college students to consider trade and technical alternatives, and possibly abolish the federal Department of Education. Trump can do more against the media, in the form of revoking media credentials of establishment news outlets and instead relying upon alternative media, independent journalists, and direct communication with the American people via social media to deliver his messages.

Conclusion

Perilloux writes:

“But whatever happens, it’s not going to be enough. Democracy and communism will not be defeated this time, and when Trump is done, if democracy still stands, all the worst of the modern world will come crawling back to us. …Trump will not end democracy and bring about the coming golden age…because no one was ready with a männerbund of a thousand virtuous statesmen with a full vision and plan. Therefore, if that’s going to happen, while Trump and company labor valiantly in the Potomac swamp, someone has to be building that intellectual and human infrastructure for the true Restoration in the future.

It is not immediate power we need for the long game, but wisdom, vision, virtue, and solidarity. We will not get these from Trump’s administration. These things can only be built without the distractions of power. The men of the Trump administration will be busy playing anti-communist whack-a-mole and thinking about a very different set of strategic considerations than a long-term Restoration-focused research team must be. Their work will be valuable I’m sure, but they will not have the time or attention to think about the long game.”

In this much, he is correct, but it is libertarian reactionaries rather than neoreactionaries who must build said infrastructure. We must build private alternatives to government services which succeed where governments have failed. We must create black markets to deprive the state of revenue and lessen its ability to harm the economy. We must infiltrate the halls of power to obstruct government functions from within. We must protest and practice jury nullification to obstruct government functions from without. We must educate people to understand the necessity of eliminating the state apparatus by any means necessary, as well as the need to rely on oneself and one’s community instead of the state. Perhaps most importantly, we must train ourselves to be competent in the use of defensive force and irregular tactics.

If we accomplish these tasks well in the coming years, we will be prepared for the task of defeating the current state and keeping a new state from filling a power vacuum. Nothing less than this will allow us to end democracy, monarchy, and every other parasitism upon innocent and productive people. The neoreactionaries, on the other hand, would restore the Crown, and much like the mainstream conservatives who would restore the Republic, will only condemn our descendants to re-fight our battles for liberty.

Footnotes:

  1. This may help to explain why democracies largely replaced monarchies through the 19th and early 20th centuries, as weaponized, less-damaged institutions have a combative advantage against non-weaponized, more-damaged institutions.
  2. Notably, libertarian reactionaries have two advantages over the physicist using a vacuum pump. First, a vacuum pump cannot destroy atoms, but a libertarian reactionary can kill an aggressor. Second, the physicist will never turn the entire universe outside of the vacuum chamber into a vacuum, but libertarian reactionaries can come close enough to turning the entire world into a libertarian-controlled area to be able to live all but free from aggressive violence while standing by to eliminate any new threat.
  3. This could provide the impetus for the necessary violent revolution, so perhaps Perilloux is accidentally correct on this point.

Read the entire article at ZerothPosition.com

The Economic Fallacies of Black Friday: 2016 Edition

Today, shoppers across America will participate in the largest shopping day of the year: Black Friday. The National Retail Federation is estimating that 137.4 million customers will be shopping on Black Friday weekend, down from the 2015 estimate of 135.8 million customers. The actual result from 2015 was 151.4 million shoppers. A similar adjustment to the predicted value for 2016 would mean an actual number of shoppers close to 153.1 million.

The NRF estimates that total sales for the holiday season will be $655.8 billion, up from $633.0 billion in 2015. This would be an annual increase of 3.6 percent. The estimate for 2015 was $630.5 billion, suggesting that the total sales for 2016 may be around $658.4 billion. This year, the NRF estimates that retailers will hire between 640,000 and 690,000 seasonal employees, compared with the actual 675,300 they hired during the 2015 holiday season versus an estimate of 700,000 to 750,000. We may therefore expect that retailers will actually hire about 619,400 seasonal employees. On the surface, this may appear to be a marvelous celebration of free market capitalism. But let us look deeper through the lenses of the broken window fallacy and the idea of malinvestment.

To view holiday shopping as a boost to the economy ignores the fact that people could either be spending that money in other ways or saving it. In other words, such an approach is an example of the broken window fallacy because it focuses only on what is seen and ignores opportunity costs. If people would save their money rather than spending it on various holiday gifts, then this money would be invested in one thing or another. As Henry Hazlitt explains in Chapter 23 of Economics in One Lesson, saving is really just another form of spending, and one that has a greater tendency to allocate resources where they are most needed.

Per capita spending is predicted to be $935.58 in 2016, up from the 2015 estimate of $805.65. The actual result from 2015 was $952.58. A similar adjustment to the predicted value for 2016 would mean an actual per capita spending close to $1,106.21. The above problems get even worse if people use credit cards to spend money that they do not currently have. With a current credit card interest rate of 16.28 percent and a minimum payment of 4.0 percent, a debt of $1,106.21 would take almost six years to pay off and would cost $1,567.57. This is $461.36 wasted on interest payments that could have been kept in one’s accounts or put toward a productive purpose. Multiply this by the 153.1 million shoppers predicted earlier, and the result is that as much as $70.6 billion could be spent on interest payments.

When people purchase unwanted gifts and/or buy gifts with money they do not currently have, their choices encourage malinvestments. A malinvestment is an investment in a line of production that is mistaken in terms of the real demands of the economy, which leads to wasted capital and economic losses. The holiday shopping season contains a subset of shopping which creates systematic and widespread mistakes in investment and production. Although the effect is not as severe as what occurs during an Austrian business cycle bust and is both caused and resolved in fundamentally different ways, there is a noticeable hangover effect on the economy. A look at the average monthly returns on the Standard and Poor’s 500 shows that while the worst month for investments is September, the next three worst months for investing are February, May, and March. (April would likely be bad as well if not for income tax returns providing an artificial economic boost.) An economic downturn occurs in the historical average following the holiday season, but as this has become an expected annual occurrence, many analysts simply do not look for an explanation of these results, as they are perceived to be natural. Even so, this appears to be a small-scale business cycle that repeats annually.

With these arguments in mind, would we all be better off if we just canceled the holiday shopping season? It is an open question, but the Austrian School of economics suggests that we could have a better economy if the burst of economic activity in late November and December were spread throughout the year and people did not spend money they do not have on items they do not need.

Requiem for a Dumpster Fire: The 2016 Libertarian National Convention

On May 27-30, the Libertarian Party held its national presidential nominating convention in Orlando, Fla. Over a thousand delegates from all 50 states attended the convention, along with dozens of guest speakers. Much of this was well and good, though some leftist degeneracy has infiltrated most corners of the libertarian community, and the guest seminars and panels were no exception. But none of this matters much to those who are not libertarians and/or have no interest in the inside baseball of the Libertarian Party. Those people were paying attention to the presidential and vice presidential debates, as well as the election processes for the party’s presidential ticket and national party offices. What they saw, at least from the standpoint of this philosophical libertarian, was a raging dumpster fire.

At the vice presidential debate on Friday, the audio quality was unbecoming of an organization seeking to put people into the White House. William Weld was generally lacking in passion and boldness, supported using the United Nations as a check against corrupt governments in third-world countries, and frequently diverged from straight answers in order to attack presumptive Republican nominee Donald Trump. Larry Sharpe seemed to believe that all punishment should be abolished and misidentified several historical figures as libertarians who were not. Will Coley was a mostly consistent libertarian, but managed to confuse non-aggression with pacifism. Alicia Dearn was more on point, but otherwise unremarkable. All four candidates were soft on the topic of violent revolution.

If the vice presidential debate was bad, then the presidential debate on Saturday was worse. The audio problems continued. Gary Johnson repeated the tired falsehood that libertarianism is social liberalism combined with economic conservatism, supported fixing Social Security rather than phasing it out, claimed that market forces had bankrupted coal companies (and was promptly corrected by Austin Petersen), supported for a consumption tax (which drew a round of boos from the audience), advocated regional banks rather than a free market in currency, declined to condemn the atomic bombing of Hiroshima, had no answer as to whether American involvement in the World Wars was justified, supported government involvement in marriage, favored the Civil Rights Act of 1964 (which drew a round of boos from the audience due to parts which violate private property rights and freedom of association), and supported government-issued driver’s licenses (which drew several rounds of boos from the audience). John McAfee defended keeping entitlement programs for older people. Petersen voiced support for a flat tax to fund Social Security, claimed that roads will be unnecessary because we will have jetpacks, and voiced support for the atomic bombings of Hiroshima and Nagasaki. Darryl Perry was wrong on some historical facts, but was generally a strong libertarian. Marc Allan Feldman mistakenly asserted that one cannot fight for one right without fighting for others, claimed that the Islamic religion cannot be blamed for terrorism, failed to realize that political leaders will want to engage in warfare if they perceive it to be in their interest, and was equivocal on the Civil Rights Act concerning private sector discrimination. All five candidates engaged in various degrees of openborders cuckery and said that there is no lesser evil between Republicans and Democrats.

The nominees were chosen on Sunday, and to the surprise of few, Johnson and Weld won, though neither earned a majority of delegate support on the first ballot. In this decision, the delegates decided to choose nominees with the most name recognition in hopes of reaching out to more voters at the cost of presenting a false message of what libertarianism is. This decision says that the Libertarian Party has forgotten its purpose as an educational tool and is instead trying to play the establishment’s game, thinking that the establishment is sufficiently divided against itself to allow an upstart challenger to the duopoly to have a chance. As such, they chose the most moderate, safe, mainstream, establishment candidates they could find to run with the banner of what is supposed to be an extreme, bold, anti-establishment party. But if history has taught us anything about third parties in America, it is that the two major parties always agree that no other party should be allowed to compete.

It would be bad enough if the heresies of Johnson and Weld were limited to their debate responses listed above, but there is much more. Johnson has a history of supporting military intervention against Joseph Kony, saying that Jews should be forced to do business with Nazis, wanting to ban Muslim women from wearing burqas, and growing state government spending as governor. Weld has a history of supporting affirmative action, eminent domain, environmental regulations, gun control, the Iraq War, the Patriot Act, the presidential candidacy of Barack Obama, and most recently, the presidential candidacy of John Kasich.

It is hard to view this as anything other than a culmination of the hostile takeover of the Libertarian Party by cuckservatives and cuckertarians that has been underway for a long time. To quote myself from an earlier article,

“The cuckertarian denounces anarchist libertarians as utopian idealists, preaching instead a form of limited statism that contains obvious contradictions. Cuckertarians prefer to moderate the message of liberty to reach a wider audience, but in the process they corrupt it into something that a consistently principled libertarian would barely recognize. In the Libertarian Party, this results in moderate or even fake libertarians gaining the presidential nomination.”

Some libertarians may say that this election is a test to see whether libertarians can work within the system, but has this experiment not been run repeatedly for the past 40 years, with essentially the same result each time? This many attempts should be enough to convince even the most stalwart party operative that, in the words of Christopher Cantwell,

“Any libertarian who tells you he is trying to win an election is either lying to you about trying to win the election, lying to us about being a libertarian, or terribly misinformed. As far as we are concerned, elections are a bad thing. We are trying to end them, not win them. …Libertarians are anarchists, whether they realize it or not. Even the ones who are delusional enough to think that they are going to get elected and restore the bloody republic, are little more than useful idiots who are repeating anarchist propaganda for us through channels normally reserved for government. The goal is not to win your elections, the goal is to turn a large enough minority against the legitimacy of the State as to make its continued function impossible.”

Unfortunately, the troubles did not end with the presidential nominating process. At a time when the Libertarian Party most needs itself to be taken seriously by the American people, one candidate for party chair decided to perform a striptease on the convention stage during the process to fill that office. But perhaps worst of all, failed presidential candidate John McAfee thought it wise to attack the core demographic of libertarianism. During his concession speech, McAfee said,

“When I first joined the Libertarian Party, two things stood out very starkly. One, 75 percent of you are men. Number two, 99.8 percent of you are white. Shame on you. Shame on you, and shame on me for never having mentioned it before.”

If anything, white men deserve praise for being the demographic group that is intelligent enough to become libertarians to such a disproportionate extent. What McAfee is suggesting is that there is a white man’s burden, that it is the responsibility of white males to make sure that females and non-whites are educated and behaving properly. But rather than denouncing him as a racist and sexist, as would have been proper, the audience applauded him. Even if his intended point was that more outreach should be done to females and non-whites, there are evolutionary reasons to believe that this will be less than fruitful.

The long-term result of the 2016 Libertarian Party National Convention is hard to predict, but it did nothing to help the image of libertarianism while doing much to pollute its message. As such, the best result in the general election may be one of total failure so that libertarians can reject the approach taken by the party. As always, the path to liberty is anti-political.

Cut Puerto Rico Loose

On May 2, the Puerto Rican government missed an interest payment on bonds it has issued to an extent of $422 million. Worries of default on the territory’s general obligation bonds are continually rising, as it appears that a $2 billion payment due on July 1 will also go unpaid.

Of course, the usual suspects are calling for intervention to “save” the island from its financial woes. Some Democrats are openly clinging to Keynesian ideas of bailouts for troubled financial instruments, despite the abject failure of such measures to repair the mainland U.S. economy since 2008. Meanwhile, House Speaker Paul Ryan has made the statement that “[o]ur primary responsibility is to protect the American taxpayer and to help bring order to the chaos that will befall Puerto Rico if the status quo continues going in the direction it’s going,” which is contradictory because attempting to rescue Puerto Rico will require victimizing not only the American taxpayer, but everyone who holds U.S. dollars.

That such a bailout would be funded by money gained by the state through extortion and currency debasement is terrible enough, but rescuing Puerto Ricans from the just consequences of their actions also creates a moral hazard. If Puerto Rico, then why not Detroit? Chicago? California, even? If $72 billion in debt plus $44 billion in unfunded liabilities for a outlying territory, then why not more for the U.S. mainland? Rewarding and subsidizing bad behavior only encourages more of it, not only from some irresponsible actors, but from all of them.

It must also be noted that in the current political climate, Republicans will be demonized by Democrats and the lapdog media regardless of what happens, and the Republican rank-and-file will be given the shaft. If there is no bailout, then Democrats will accuse Republicans of being too stingy to help people in need, especially ethnic minorities. If there is a bailout and trouble continues, which it will under such circumstances, then Democrats will blame Republicans for not using enough stimulus and/or for allocating the funds poorly. If one will face accusations regardless of one’s actions, then one might as well get one’s money’s worth and do the right thing. And what is the right thing?

Do not only abstain from bailouts; cut Puerto Rico loose.

Let us face facts; Puerto Rico has never really been a part of America, not in terms of economics, culture, language, or identity. In fact, it was not a part of America at all until 1898, when the United States gained control of it from Spain (along with Guam and the Philippines) under the Treaty of Paris, which ended the Spanish-American War. For four centuries prior since being claimed by Columbus in 1493, Puerto Rico had been a Spanish colony. The people there used the Spanish language, but developed their own sense of culture and national identity. (This commonly occurs upon islands, as the ocean makes for a clear barrier between in-group and out-group.) That they may call themselves U.S. citizens is only a matter of law.

The economic well-being of Puerto Rico is not on par with the rest of the United States. If it were an independent nation, it would rank between 60th and 62nd in GDP, with a similar economic output to Angola, Morocco, and Slovakia, none of which are exactly paragons of economic development. If it were a U.S. state, it would rank 37th out of 51. The difference is far more pronounced when considering other measurements. In terms of public debt to GDP, Puerto Rico has a debt of 66 percent of GDP, while no U.S. state exceeds 25 percent. The per capita public debt of Puerto Rico is $19,486.60, which exceeds that of every U.S. state but is lower than that of the District of Columbia. The per capita income in Puerto Rico is $11,241, placing it just above half of the worst U.S. state (Mississippi, $21,036) and far below the best (D.C., $45,877; Connecticut, $39,373).

While cutting Puerto Rico loose is a matter of rational self-interest for mainland Americans, it is also a way to end their victimization at the hands of central bankers and the investors who react to their pernicious policies. While a free market would have much higher interest rates and no currency debasement, central banks like the Federal Reserve have kept interest rates artificially low and have greatly expanded the monetary supply. Savers who are used to getting a reasonable rate of return in a savings account thus have to seek riskier alternatives. Those who have enough capital to access hedge funds, high-risk sovereign debt becomes an attractive option. Those who are poorer either sit on fiat currency as it loses value or venture into precious metals and cryptocurrencies, which can pose even more risk and volatility. While Puerto Rico would likely form a central bank and issue its own fiat currency if it were cut loose, this would keep the Federal Reserve from imposing an economic system which encourages booms that favor foreign investors at the cost of busts that burden Puerto Ricans. A problem of this sort has already been seen in Greece, and the mistakes made by the European Central Bank should not be repeated.

The Not-So-Current Year: 2015 In Review

Though the specific demarcation of the passage from one year into another is a rather arbitrary social construct, it does provide a useful annual period for self-examination and remembrance. Now that 2015 has entered the history books, let us take a look back at a year’s worth of essays and review the not-so-current year.

In December 2014, an assassination of two NYPD officers prompted many libertarians to signal hard against the use of force against agents of the state. I decided to argue the opposing case. The harassment of the Meitiv family by Child Protective Services prompted another such article. Julian Adorney resolved that good government police exist, and I responded by explaining why this is impossible. I used another NYPD incident to argue that when government agents and common criminals fight, we should pull for no one. When Tremaine Wilbourn killed a police officer during a traffic stop in Memphis, Tenn, I wrote a list of observations on the event which mostly follow the aforementioned articles.

Many libertarians praise decentralization, and rightly so. But it is neither good nor evil in and of itself. It can be used for good or evil ends, and I explored the latter.

On Burns night, I observed that a proper haggis was unavailable in the United States and found that as usual, the state is to blame. Staying on the subject of food, economically illiterate researchers blamed Walmart for causing obesity, and I explained why this is fallacious.

The 70th anniversary of the liberation of the Nazi death camp at Auschwitz gave cause to examine how such an atrocity could be carried out without the state. The answer, of course, is that it would be all but impossible.

Entering February, I allowed my cynicism to wax to the point of formalizing it as a razor. It could use more detailing and strengthening, which is a project for a later time. I used the razor to explain why the Obama administration might want to disarm elderly people.

Alleged Silk Road creator Ross Ulbricht was convicted on February 4 and sentenced on May 29. I made lists of observations on both of these occasions. Some people were none too happy with the state’s treatment of Ulbricht, and their displeasure got them in hot water. This occasion also merited a list of observations.

The movie American Sniper did well at the box office, but a metaphor therein was left incomplete. I decided to complete the analogy of sheep, sheepdogs, and wolves by adding farmers of human livestock to the mix.

A video by Stefan Molyneux about two different types of statists compared them to warriors and wizards. I made the case that countering the state requires libertarians to be both character classes at once.

Ron Paul made a video appearance at the International Students For Liberty Conference, but some attendees decided to interrupt this by reading an open letter to him which was filled with leftist entryist nonsense. I wrote an open letter against them which gained wide recognition and helped run some of the people involved out of libertarian circles. It remains one of my proudest moments as a writer.

At the end of February, Republicans tried to use brinkmanship to force spending cuts, which failed miserably due to their track record of caving at the last minute. I wrote a list of observations on the event.

On March 9, I published my most popular article to date, which is also one of my most shallow, choir-preaching works. The correlation between the two can be most depressing at times. At any rate, here are 25 statist propaganda phrases and some concise rebuttals.

Several commenters have told me that I am at my best when I provide a sound defense for an idea that most people find to be outrageous. I did this several times in 2015, defending the killing of innocent shields in certain circumstances, the proliferation of nuclear weapons, letting Iran develop a nuclear deterrent, and the replacement of democratic elections with jousts to the death.

I went on a rebuttal streak in the spring of 2015. President Obama proposed that voting be made mandatory, and I argued the case against this. Michael Eliot argued that a violent revolution is not the correct strategy for creating a free society, and that the use of methods such as seasteading will be more successful. I explained why this is false. Walter Block argued in favor of Rand Paul’s presidential campaign, and I demonstrated why he is not a good choice. Austin Petersen effectively made a case against libertarianism itself, and I rebutted it.

Paul Krugman delivered some rather standard talking points about public goods, and I showed why they are wrong. I revisited the subject later in the year.

Rolling Stone decided to go ahead with a completely false story about campus rape, and did nothing beyond wrist-slapping to those involved in creating and editing the story. They also defended the ideas behind the story, with which I took great issue. Another sex-related story occurred on April 21 when the head of the Drug Enforcement Administration resigned due to a prostitution scandal that occurred on her watch. I explained why we should not be surprised, and should actually expect more of such behavior. The purity spiral of campus feminism has grown to such an extent that even left-wing feminist professors are not immune. Rape accusation culture struck once more at Amherst College, and the victim took the university to court.

Baltimore police officers arrested Freddie Gray, who died one week later as a result of injuries sustained during the arrest. Riots ensued, and I wrote a list of observations on the event.

Charles Murray published a book detailing a novel strategy for fighting the regulatory state: overwhelm it with civil disobedience, create a legal fund to defend victims of regulation, and start treating government fines as an insurable hazard. I argued that this would fail, but that it needs to be tried anyway.

The prohibition of excessive bail and fines, as well as cruel and unusual punishment, is a much-revered part of the United States Constitution. I argued that it should not be.

Dylann Roof carried out a mass shooting at a black church in Charleston, and I wrote a list of observations on the event.

Late June is Supreme Court season, and they delivered at least two bad decisions in 2015. First, they ruled very narrowly in favor of raisin farmers, but left the rights-violating practice of eminent domain intact. Then, they crammed same-sex marriage down the throats of all Americans.

Litecoin exchange rates suddenly spiked in early July. I took an educated guess at why, but it ended up being pure speculation.

Turmoil in Greece threatened to boil over into a default or even a Grexit. I took a deep look into the situation and concluded that only anarchy can fix the problems there.

Two seemingly disparate stories concerning Planned Parenthood and the ongoing conflict in Ukraine had a common thread: there is no such thing as non-lethal aid to an organization that conducts lethal operations.

I wrote a three-part series about fascism and communism in America, as well as how a nation can be both. Although I lated discovered that Lawrence Britt does not appear to be a real person, I found the 14-point list of fascist characteristics to be sound, so I did not revise the article.

A problem which is frequently cited as a reason why we must have a state is the problem of pollution. I dealt with the issues of water ownership and pollution in order to show why the state cannot solve the problem of pollution.

In one of my more controversial articles, I argued that Vester Flanagan, the man who murdered a reporter and a cameraman in Roanoke, Va., was a model social justice warrior. Examiner decided to pull it for offending their audience, but you can find it here.

Everyone knows that the Libertarian Party is not exactly a bastion of excellent strategic thinkers. I decided to offer them help, and a response to my essay advocating an alternate strategy is also worth reading.

Liberty Mutual created a series of advertisements that air regularly in my area, and they are full of economic fallacies. They annoyed me enough to dedicate an article to debunking them.

Reservation scalping occurred at Disney World restaurants, which outraged many people. I applied Walter Block’s reasoning for defending ticket scalpers to argue against the outrage.

September 11 always brings about discussions on security. I argued that there can be no such thing; only temporary and imperfect protection from particular dangers.

The term ‘cuckservative’ arose from alt-right circles to describe those who are insufficiently conservative, selling out their constituents, and/or acting against their own rational self-interests. I created the term ‘cuckertarian‘ to describe a similar problem among libertarians. Another problem with the libertarian movement that I addressed is the embrace of hedonism when libertarianism only requires that we not use aggressive violence to stamp out non-violent degeneracy.

After several years in prison for tax resistance, Irwin Schiff passed away. I wrote a list of observations on the event that gained praise from his son Peter.

I belatedly refuted Matt Zwolinski’s six reasons for rejecting the non-aggression principle. I had meant to do so when he published his piece back in April 2013, but other work took precedence and it languished in development hell. Next, I dealt with Youliy Ninov’s arguments against anarcho-capitalism in what is my most verbose article to date.

Islamic terrorists attacked Beirut and Paris on November 12 and 13, respectively. I wrote a list of observations on the events.

Many libertarians misunderstand immigration and borders, so after several pro-open-borders articles published in quick succession by other authors, I tried to set them straight.

Black Friday is revered by most libertarians as a celebration of free-market capitalism. I explained why this reverence is somewhat misplaced.

Robert Dear attacked a Planned Parenthood facility in Colorado Springs, Colo., killing three people and wounding nine others. I made the case that although the use of force against Planned Parenthood is defensive in nature, it is frequently impractical and counterproductive.

The success of the Donald Trump presidential campaign, as well as growing support for it in libertarian and reactionary circles, led me to examine the phenomena. I concluded that Trumpism is not a libertarian form of reaction, though we may have some common enemies.

My final article of 2015 addressed the common phrase ‘give back to the community.’ In short, it is communist nonsense that must be rejected.

I began work on another case against a constitutional amendment, but it was not completed for publishing before the end of 2015, so it will appear first in next year’s review.

All in all, it was an interesting year full of occasions to make sharp libertarian arguments. May 2016 bring more of the same. Happy New Year!