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Financial Delinquents
March 30th, 2009I believe that banking institutions are more dangerous to our liberties than standing armies.
– Thomas Jefferson
One can praise Mister Jefferson for a great many things. His insights into the mechanics of government and the evils therein should guide us in our modern age, especially where government and banking intersect. Establishing public schools as a mechanism for deflecting despotism has its value. Thomas’ architectural legacy as well as his push to educate and free slaves is admirable.
But he was a financial dolt.
Mister Jefferson died in poverty, owing great sums of money to a great many people and institutions. Many of his slaves could not be emancipated upon his death because they had been used as collateral. His estate left relatively little to his children, mulatto bastards or otherwise. He sold his vast library not only to make his collection available to the nation but also to keep his fiscal ass from scrapping the cobblestones.
From the quote above he appears to blame the banks and not himself. Jefferson sounds like any number of current politicians or sub-prime home owners who took on more debt than they could manage and sought to shift the shame of their failures upon others. Nobody views themselves as the devil, not even Satan when he shaves. It is difficult to accept much less profess ones own stupidity and doubly so when your peers have been lauding your genius.
Thus in today’s America few people want to accept the cost of their own failure. Buying a house at the peak of an obvious real estate bubble and financing the purchase with highly destructive variable rate mortgages in hindsight appears to be the act of fools even to the fools themselves. Thus they borrow Mister Jefferson’s model and lay blame on the lenders.
Call it enslaved intellectualism.
Nastier though is the lack of paternal restraint shown by government. Instead of telling the foolish to suffer the consequences of their poor decisions they offer financial relief at the expense of either their non-foolish neighbors (i.e., the taxpayers) or inflation ravaged future generations (your children). With the money supply growing 271% in the past five months, Zimbabwe style inflation is soon to follow. The only persons not suffering through this elaborate Federal pocket picking exercise are the politicians, the foolish home buyers and the banks.
Mister Jefferson missed the mark. Banking institutions are not inherently dangerous because borrowing is a voluntary process. Taxation is typically involuntary and infinitely more dangerous to infinitely more people. Banks are benign. Standing armies are controllable. Congress is neither.










I have found validation of the old joke that San Francisco is Hollywood pretending to be Paris (or perhaps Paris Hilton).