In violent times
You shouldn't have to sell your soul
In black and white
They really, really ought to know
--Tears for Fears
I have seen several studies recently claiming that the world is in the midst of an unprecedented war-free period. At first, these claims drew double takes from me. However, if one defines war as formal military conflict between two or more countries then these claims may be true, as we haven't had large scale 'outward wars' in some time.
Of course, there have been hundreds of conflicts that look like war that might not qualify under the above definition. Drug wars in Central and South America, East European conflicts, the War on Terror, etc. The social and economic impact of these 'non-wars' has been huge. For example, the US alone has spent more than $1 trillion on the War on Terror. Imagine applying that pile of economic resources toward voluntary, peaceful concerns.
More significant yet has been the 'inward wars' being waged by governments worldwide against their own citizens. The core competence of government is force--force that can be employed in either offensive or defensive manners. Overwhelmingly, governments are using offensive force. They are acting aggressively against citizens.
Because they are usually not called such, government programs of aggression sometimes fool people into thinking governments are keeping peace rather than waging war. Taxes, for example, are viewed by some as just means of acquiring resources for various interests rather than as confiscation of resources by strong armed agents. However, taxes constitute violent acts against the citizenry--as our founding ancestors ably recognized.
Expansion of the money supply by central banks is also seen as peaceful. However, when money is printed it lowers the value of money already in people's wallets. Those who get control of newly minted cash first effectively confiscate resources from others. Because the gradual theft of resources can be difficult to recognize, inflation is sometimes called the 'invisible tax.'
Sovereign debt is perhaps the most egregious indicator of today's inward war. Governments borrow on promises that it enslave citizens in order to obtain resources to make creditors whole. Sovereign debt levels have never been this high in history. And they are growing thanks to QE..
While outward wars may infrequent at the moment, intensity of inward wars has never been greater.
Monday, May 25, 2015
Inward War
Labels:
agency problem,
debt,
EU,
government,
inflation,
measurement,
pharma,
risk,
self defense,
socialism,
taxes,
Tea Party,
terrorism,
war
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