Alexander Hamilton’s Push for Central Banking

   Rise up Rochester features a post from www.mises.org entitled “The Corrupt Origins of Central Banking,” written by Thomas J. DiLorenzo.

Central banking has been a corrupt, mercantilist scheme and an engine of corporate welfare from its very beginning in the late 18th century. The first central bank, the Bank of North America, was “driven through the Continental Congress by [congressman and financier] Robert Morris in the Spring of 1781,” wrote Murray Rothbard in The Mystery of Banking (p. 191). The Philadelphia businessman Morris had been a defense contractor during the Revolutionary War who “siphoned off millions from the public treasury into contracts to his own … firm and to those of his associates.” He was also “leader of the powerful Nationalist forces” in the new country.

(Photo credit – http://images.google.com/imgres?imgurl=http://bp3.blogger.com/_THosNXNQORw/SEUdHB888mI/AAAAAAAAC5s/2YUfkMh2qXA/s400/dollar.jpg&imgrefurl=http://kylekeeton.com/2008/06/russia-dollar-drops-euro-up-according.html&h=282&w=300&sz=21&hl=en&start=38&sig2=ElQ4tnzu7qvqOUDhr8Z2aQ&usg=__MLn3cifWVzOnK3SkmAmym83OvxM=&tbnid=bKiPx9TqDj04uM:&tbnh=109&tbnw=116&ei=VLQVSbWIGpeWerSLzLwH&prev=/images%3Fq%3Dcorrupt%2Bcentral%2Bbank%26start%3D20%26gbv%3D2%26ndsp%3D20%26hl%3Den%26sa%3DN)

Robert Morris had a heavy influence on America’s first Treasury Secretary, Alexander Hamilton.

[Robert Morris] recruited a young Alexander Hamilton to serve more or less as his political puppet within the Washington administration. (Rothbard called Hamilton “Morris’s youthful disciple.”) In fact, the reason why Hamilton became Treasury secretary, despite having no reputation at all in the field of finance, was the recommendation by Morris to George Washington.

(Photo credit – http://www.columbia.edu/cu/alumni/Magazine/images/Fall2002/Hamilton.jpg)

   Mr. DiLorenzo concludes his article:

Northern merchants provided the main political support for Hamilton’s Bank, whereas southern politicians like Jefferson supplied most of the opposition to it, seeing it as nothing more than a vehicle for financing an American version of the corrupt British mercantilist system, which would be destructive of liberty and prosperity. They were right, of course, and remain right to this day.

Citizens Can Enforce Constitution

   Raymond Kraft makes some great points in his article “The Great Obama Swindle of 2008,” which apply to all things constitutional.   The following points apply especially to our seventh liberty principle, “Repudiate New Jersey’s Unconstitutional Debt.”

1.    The U.S. Constitution is a CONTRACT between The People, The States, and The United States, the federal government, that defines and limits the role of the federal government, and the rights of the States and The People, and, among other things, defines and limits the qualifications for president, i.e., that the president must be over the age of 35 years, and must be a natural born citizen.

 The same can be said about our state constitution.   Substitute “State of New Jersey” for “Federal Government” above.

2.    Any party to a CONTRACT has standing to enforce it. This is as basic as it gets. Contract Law 101. First week of law school stuff. And it seems that lawyers and judges all over the country have forgotten all about it. Also, the Constitution was intended to benefit all American citizens, We, The People, and in basic contract law the intended beneficiaries of a CONTRACT, i.e., us, also have standing to enforce it.

 Include “New Jersey Resident,” when reading “American citizens.”

3.    If We, The People, do not have standing to enforce the CONTRACT, the U.S. Constitution, then it is unenforceable, and if it is unenforceable it is just a historic curiosity that means nothing. It’s just an old piece of parchment. But that was not the intent, and to give intent to the CONTRACT it must be enforceable by its parties and beneficiaries.

Include our state constitution when reading about the U.S. Constitution above.

4.    We, The People, have standing under the First Amendment “to petition the government for redress of grievances.” If we have a grievance that a non-citizen, illegal alien, is running for president, I think the First Amendment unequivocally gives every American citizen standing to sue the government to redress that grievance and enforce the Constitution.

The First Amendment right “to petition the government for redress of grievances” is applied to the states, through the Fourteenth Amendment.   Further, our state constitution, article one, section 18 reads:

18.  The people have the right freely to assemble together, to consult for the common good, to make known their opinions to their representatives, and to petition for redress of grievances.

New Jersey’s constitution ALREADY has a “debt limitation clause” telling government they cannot borrow billions of dollars without voter approval.  Guess what?  Trenton does it anyway.   The proposed constitutional amendment, ballot question number one, does not stop borrowing billions of dollars without voter approval.   Only enforcing the constitution will stop these constitutional abuses.

   Ballot question one makes things worse.   A “yes” vote would allow the Legislature to retroactively apply the full faith and credit of our state to their unconstitutional borrowing (junk bonds).  Please uphold our constitution as it is.   Vote “no” on ballot question number one.

MoreMonmounthMusings Siding with Liberty and Prosperity

Check out what Art Gallagher has to say about Seth Grossman’s Asbury Park Press op-ed piece telling voters to vote “no” on Ballot Question #1.

Wednesday, October 29, 2008

Is New Jersey’s State Government scamming us again?

Somers Point Attorney Seth Grossman has an OpEd piece in today’s Asbury Park Press that is potentially explosive. All New Jersey voters should read it. Click here to do so.

Grossman is a former Atlantic City Councilman and former Atlantic County Freeholder. An ally of Steve Lonegan, Grossman was also arrested in Cape May County when he and Lonegan were protesting Governor Corzine 800% toll increase scam. Grossman is also the acting president of LibertyAndProsperity.org

Grossman is calling for voters to defeat Public Question No 1, which according to media reports, the National Taxpayers Union and today’s Asbury Park Press editorial would close most of the loop holes that have allowed state authorities to borrow money without voter approval.

There’s a big but according to Grossman. He says that the NJ Supreme Court ruled, in a suit brought by Lonegan, that voter approval was not necessary for independent authorities’ debt, but that the state is not on the hook for the debt if the voters did not approve it. THIS IS HUGE.

Wall Street geniuses continued to buy independent authority bonds because insurance companies backed the debt, just like they backed all those sub-prime mortgages that have melted down Wall Street. There is no market for that kind of insurance now, and there is no market for independent authority bonds. Thus, the market has solved our independent authority borrowing problem, at least for now, and according to Grossman’s account of the the Supreme Court ruling, New Jersey tax payers are not on the hook for that $30 billion in debt that Corzine has wasted his credibility on trying to pay back.

The other big but, according to Grossman, is that is Public Question No 1 is approved, the state legislature could put New Jersey taxpayers on the hook for all past debt issued without voter approval. Does anyone think that they wouldn’t do that?

I don’t know Grossman, but I am inclined to believe him because this kind of scam coming out of Trenton in the name of good government and reduced borrowing is entirely believable.

New Jersey’s Republican leadership, responsible Democrats, as well as all major media outlets should examine Grossman’s argument, and if it is valid, should call for the defeat of Public Question No. 1.

Posted by Art Gallagher at 8:07 AM

Do not legitimize Trenton’s junk bonds. Vote NO on ballot question #1

   Steve Lonegan and Americans for Prosperity offer the following reasons to vote NO on question #1.  

IMPORTANT ALERT
Vote “No” On Question One

Americans for Prosperity Urges a NO vote on Ballot Question One
Ballot Question One is misleading and dangerous for property taxpayers. Many of us hoped this referendum would put an end to the runaway borrowing that has plagued the state. While this question appears, on its surface, to stop unconstitutional borrowing, the legislation gives additional power to the legislature to place even more responsibility on every property taxpayer. It is a fraud. Here’s why:
The devil is in the fine print of Senate Concurrent Resolution #39 which will replace our current constitution if State Ballot Question #1 is approved.
First, voter approval will NOT be needed if a proposed project has “an independent non-State source of revenue” or “a source of revenue otherwise required to be appropriated pursuant to another provision of this Constitution”.

Any Enron accountant or Abbott lawyer can drive a truck through those loopholes.

But here is the real kicker: “No voter approval shall be required . . . authorizing the creation of . . . debts . . . for the refinancing of all or a portion of any outstanding debts or liabilities of . . . an autonomous public corporate entity.”
Our Supreme Court ruled that New Jersey voters don’t have to pay a dime on any of the $29 billion previously borrowed by shell entities like the EDA-unless they vote to do it. But with a “Yes” vote on Ballot Question #1, Governor Corzine and the State Legislature could pass a simple law to refinance every dollar of the $37 billion borrowed by state authorities WITHOUT voter approval! Then, every “unenforceable” contract to pay $3 billion a year will become enforceable for the first time-WITHOUT voter approval-for the next 30 years.

Once the full faith and credit of New Jersey is pledged, all state sales tax money is earmarked to pay that debt before it is spent on anything else. And if that money is not enough, the State is legally obligated to adopt a new statewide property tax to pay the difference.
Don’t be fooled. Vote No on State Ballot Question #1.
 
Steve Lonegan
State Director
Americans For Prosperity

   Stand with fellow taxpayers in opposing the latest Trentonian “bi-partisan” insider deal to reward Trentonian and Wall Street crooks.

Congress to Investigate New Jersey’s Unconstitutional Debt

   Liberty and Prosperity’s seventh liberty principle is “Repudiate all unconstitutional debt.”   A common practice of Christie Todd Whitman and a succession of Democrat Governors has been to spend more and more and grow the size of government.   They funded their government-growing agendas by raising taxes, increasing fees [taxes], and bonding debt for future generations to pay.  

   The state constitution is clear on the subject of bonding debt.   When the amount of the bonds is greater than one percentum of the state budget, the Democrats and Christie Todd Whitman should have submitted the bond proposals for voter approval.   Only three billion dollars of the approximate forty billion dollars of New Jersey debt is approved by voters.   Democrat Governors McGreevey and Corzine have continued the practice initiated by Governor Whitman of clearly violating our constitution.   They chose, time and time again, to circumvent the constitution.

   They created government authorities and agencies and had those authorities and agencies endebt us and future generations billions of dollars to pay for their wild ideas and political pay-backs.

   Americans for Prosperity and Liberty and Prosperity have been drawing attention to this flagrant abuse of political power.   Here is the latest update on our effort to repudiate all unconstitutional debt.

 
Congress Opens Inquiry Into Wall Street Bond Rating Standards
Americans for prosperity citizen activists lead charge on misleading ratings.
A Note From Steve Lonegan: Nearly three months ago, I stood in front of Moody’s Investment Service near Wall Street with 60 AFP Citizen Activists. We were protesting and bringing attention to the misleading rating system that bond rating agencies like Moody’s and Standard and Poors are using to rate New Jersey contract debt bonds.
While we received some press coverage that day delivering our letter of demand to Ray McDaniel, CEO of Moody’s, the media and most elected officials shrugged off our claims. Some thought our effort was a waste of time.
NOT SO FAST!!!
Last week the United States House of Representatives decided to listen. Hearings into the institutions rating methods were held and executives from all the major rating agencies were called to testify. Ray McDaniel, the recipient of our hand-delivered letter was a key witness.
A few articles:
Waxman digs into Moody’s, S&P with internal docs
Assigning blame
Congress mauls bosses of credit ratings agencies

 

On Friday, November 21 at 9:00 a.m. our law suit to stop the state from borrowing $3.9 billion without voter approval will be heard in Superior Court in Hackensack. The judge will consider the sketchy practices of the state government and the Wall Street rating services in selling these bonds to investors. The vast majority of these investors believe the bonds carry the “full faith and backing” of the state. This can only happen when the bonds are approved by voters in a public referendum. Moody’s and others have failed to disclose the difference and investors are being misled. The current hearings in Congress are proving this fact, and this revelation could play a key role in what very well may be a historic lawsuit.

Congratulations to all those who took the time to stand up against the power of big government. You have truly made a difference.
 
Upcoming Meeting
Saturday, Nov 8, 1:30 pm
Community Lodge, JFK Blvd, Sea Isle City, NJ.
On to Victory,
Steve Lonegan
State Director
Americans For Prosperity

Liberty-Informed Markets Work. Socialism Does Not.

   “Why Socialism Failed,” by Mark J. Perry discusses the superiority of the free market to socialism.

Socialism is the Big Lie of the twentieth century. While it promised prosperity, equality, and security, it delivered poverty, misery, and tyranny. Equality was achieved only in the sense that everyone was equal in his or her misery.In the same way that a Ponzi scheme or chain letter initially succeeds but eventually collapses, socialism may show early signs of success. But any accomplishments quickly fade as the fundamental deficiencies of central planning emerge. It is the initial illusion of success that gives government intervention its pernicious, seductive appeal. In the long run, socialism has always proven to be a formula for tyranny and misery.

[...]

The failure of socialism in countries around the world can be traced to one critical defect: it is a system that ignores incentives.

America’s Lady Liberty is a dear friend of Lady Iustitia.   Incentive is the expression of justice in the marketplace.   When incentive and equity are removed from the markets, justice is removed from the markets.   The elimination of incentive from our economy will destroy the foundation of our robust economy and replace our free market principles with the principles that have caused the economic demise of multiple socialist states.   Welcome, socialism, welcome, lower quality of life.

   What are the advantages of capitalism?

In a capitalist economy, incentives are of the utmost importance. Market prices, the profit-and-loss system of accounting, and private property rights provide an efficient, interrelated system of incentives to guide and direct economic behavior. Capitalism is based on the theory that incentives matter!

[...]

The strength of capitalism can be attributed to an incentive structure based upon the three Ps: (1) prices determined by market forces, (2) a profit-and-loss system of accounting and (3) private property rights. The failure of socialism can be traced to its neglect of these three incentive-enhancing components.

    The blog post concludes with an affirmation that liberty is the causation of genuine and lasting prosperity.

Socialism will remain a constant temptation. We must be vigilant in our fight against socialism not only around the globe but also here in the United States.

The failure of socialism inspired a worldwide renaissance of freedom and liberty. For the first time in the history of the world, the day is coming very soon when a majority of the people in the world will live in free societies or societies rapidly moving towards freedom.

Capitalism will play a major role in the global revival of liberty and prosperity because it nurtures the human spirit, inspires human creativity, and promotes the spirit of enterprise. By providing a powerful system of incentives that promote thrift, hard work, and efficiency, capitalism creates wealth.

The main difference between capitalism and socialism is this: Capitalism works.

Liberty and Prosperity Candidates Forum Video

   Here is some video from our candidates forum on 25 October, MMVIII. 

  Introduction from President, Dennis Mahon:

 

   Second District U.S. Congress challenger, Peter Boyce, Constitution Party:

 

   Frank Balles, Republican candidate for Atlantic County Sheriff:

 

   Incumbent District Three Freeholder, Frank Sutton, fields questions from the crowd:

 

   Congressman Frank LoBiondo’s opening remarks, who is running for re-election to New Jersey’s second Congressional district:

 

   Mr. LoBiondo responds to an audience comment.

Nicholas Sarkozy Proposes European Trans-National “Sovereign” Fund

   Roger Helmer MEP blogs on Nicholas Sarkozy latest socialist idea.

A couple of weeks ago, French President Nicholas Sarkozy, currently President-in-Office of the European Council during the French Presidency of the EU, proposed a European bail-out fund for Europe’s financial institutions. 

[...]

He’s decided (Sarkozy, not Zebedee) that he wants Europe to have a Sovereign Wealth Fund.  If all those oil producers like Russia and Abu Dhabi, and manufacturing/exporting nations like China, can have Sovereign Wealth Funds, and can go round buying up Western companies, then Europe must do the same.

[...]

Of course the French love a dirigiste, corporatist approach to industry, and nothing would please them more than a back-door nationalisation of the commanding heights of the economy.  Those of us who value liberty and prosperity (and have some idea about how liberty and prosperity are best promoted) will resist further nationalisation.

   It is sad to see Mr. Sarkozy urging Europe further along the road of socialism.   We do thank Roger Helmer for being a proponent of liberty and prosperity in Europe.

 

John Stossel’s 20/20 Incorrect Guide to Politics

   Take the time to watch this eye-opening series of videos.

Part I

 

Part II

 

Part III

 

Part IIII

 

Part V

 

Part VI

Latest Eminent Domain Abuse

   Steve Lonegan, New Jersey Director of Americans for Prosperity, released the following in his weekly update.

Quote of the Week:
“The true foundation of republican government is the equal right of every citizen in his person and property and in their management.” –Thomas Jefferson
New Jersey Continues to lead in Eminent Domain Abuse
A Note from State Director Steve Lonegan:
Yesterday I attended a press conference in Trenton with Cindy Gallenthin. The conference was in front of the Department of Environmental Protection where bureaucrats were meeting to plan an aggressive use of eminent domain to take Cindy’s farm. Cindy was prohibited from attending or partaking in the very meeting that could determine her future.

This was the not the first time Cindy fought this battle. She and her husband George Gallenthin won a historic property rights lawsuit when the New Jersey Supreme court ruled 7 to 0 in their favor, defending them against an unlawful attempt to take their family farm by the Gloucester County Improvement Authority. The case took years and more than $500,000 in legal fees, as well as an emotional toll on the family.

When George Gallenthin left for Iraq with the Defense Department where he is currently embedded, he thought his farm was safe. He was wrong.

The Gloucester County Improvement Authority is planning another attempt to take the Gallenthin Property—this time using a different approach– claiming the land is needed for “public” access to a private business and therefore constitutes as “public use.” Cindy Gallenthin is alone and trying to defend the family farm against a coalition of Big Business and Big Government.

The Founding Fathers understood the importance of owning property without the fear of government powers interfering. Do not think the Gallenthin family farm is an isolated incident. Everyone reading this newsletter could become a victim of eminent domain abuse. I am urging all of our citizen activists to come to the aid of Cindy and George by calling your legislator, calling talk radio and writing letters to the editor. While George Gallenthin is in Iraq, that is the least we can do to stop this abuse.

   We encourage you to contact your legislator and write to New Jersey newspapers.   Tell them to defend Cindy Gallenthin’s property rights while her husband George defends our country and rights.