When a society loses respect for the Rule of Law, chaos ensues. When laws are routinely ignored society disintegrates and resorts to Rule of the Jungle. The biggest and most powerful decide what will happen. Uncertainty increases and contracts become meaningless. The economy turns down dramatically because trade and agreements are limited to personal friends whose word is known to be “as good as gold.” National and international trade declines sharply.
When force rules, the government becomes totalitarian. Without rules, they dominate based on size and the potential use of force. The current administration has routinely ignored laws. In recent years, other administrations also ignored the law, but perhaps not as seriously as today. Justice Brandeis opined on the effects of this:
In a government of laws, the existence of the government will be imperiled if it fails to observe the law scrupulously. Our government is the potent, the omnipotent teacher. For good or ill, it teaches the whole people by its example. If government becomes a lawbreaker it breeds contempt for law: it invites every man to become a law unto himself. It invites anarchy.
Much of what has been done by government has arguably done within the law. The reality is that these instances are never tested in the courts and the boldness to avoid undesired constraints on government grows over time.
Now, we are on the verge of crossing a line never before crossed. The debt limit ceiling is about to be exceeded, probably next week. If Congress does not pass a new debt ceiling, then Treasury must stop borrowing money. Does anyone believe that will happen? If it does not, think of the implications.
- Laws don’t matter
- Congress doesn’t matter
- The President has assumed dictatorial power
- Government is no longer subject to constraints or control
Here is Karl Denninger’s take:
So what we have are not laws, they’re suggestions. And I “suggest” that you keep a close eye on the Treasury Daily Statement, which you can find here – that is, if its truthful (and again, what recourse exists if it is not?)
Let’s ask an ugly question: What if Treasury simply ignores the debt limit?
Now to be clear, as of the 10th this hasn’t happened.
But that’s damn close – some $16 billion. And the auctions continue, including those yesterday which have not yet settled.
But the question remains - what if the Administration simply ignores the law?
Is there any recourse available in that circumstance? Not that I can see; there is no “or else” in the law!
We are perched on the precipice. On one side stands a required reduction in the size of government. On the other, a world of total tyranny. Leviathan is growing!
Hello Monty. Since liberals/democrats hate the constitution then they have no problem ignoring any law that advances their agenda that they can get away with. We see very few prosecutions of democrat politician crimes, yet republicans have a healthy fear of legal repercussions for real or alleged misdeeds. A thought occured to me this morning as I was pondering why our Washington ruling elite don’t seem to have a grasp of what’s upon us. I gave some thought to what kind of person runs for political office. Obama himself in a debate with Hillary during the primaries in a brief moment of honesty said that a certain amount of ambition was part of his decision.
My thoughts turned to the concept of Type A or B personalities and read what Wikipedia had to say. It had this to say about the two types:
“Type A
The theory describes a Type A individual as ambitious, aggressive, business-like, controlling, highly competitive, impatient, preoccupied with his or her status, time-conscious, and tightly-wound. People with Type A personalities are often high-achieving “workaholics” who multi-task, push themselves with deadlines, and hate both delays and ambivalence.
In his 1996 book, Type A Behavior: Its Diagnosis and Treatment, Friedman suggests that Type A behavior is expressed in three major symptoms: free-floating hostility, which can be triggered by even minor incidents; time urgency and impatience, which causes irritation and exasperation; and a competitive drive, which causes stress and an achievement-driven mentality. The first of these symptoms is believed to be covert and therefore less observable, while the other two are more overt.
Type B
The theory describes Type B individuals as perfect contrast to those with Type A personalities. People with Type B personalities are generally patient, relaxed, easy-going, and at times lacking an overriding sense of urgency.
Because of these characteristics, Type B individuals are often described as apathetic and disengaged by individuals with Type A or other personality types.”
By these definitions, or categories, I clearly would be a type B although I wouldn’t necessarily consider myself as apathetic or disengaged. (Obama may be a Type B since he appears to be a lazy drone, but clearly surrounds himself all with Type A’s) I do think that the Type A traits well describe most politicians and high level government officials. One might think that they of all people would be able to decipher the landmines that lie in our path. They should see all of the things that your site continually warns us of. I would suggest, however, that they can’t see the forest because of the trees. The liberals are all consumed with Keynesian economic theory while the conservatives probably lack the intellectual curiosity to consider what WILL happen when interest rates rise to a historically low 5+ percent with an interest payment on 15 trillion dollars to make.
This summer will be interesting as you point out. The FED doesn’t have any good choices. End QE and interest rates will rise, continue with QE3 to finance government spending and the world will soon have its fill of the greenback.
Keep up the good work. Doug J.