Can Government Corruption Cause Economic Collapse?

28 Sep

[courtesy Google Images]

[courtesy Google Images]

Earlier this week, Senator Ted Cruz (R-Tex.) spoke for 21 consecutive hours on the Senate floor.  The purpose of his filibuster was to cause the Senate to defund the Obamacare law as the price of passing a new “debt ceiling” law to prevent a government shutdown. The Senate was unimpressed.  Obamacare will be funded, and the “debt ceiling” law will (eventually) be passed with or without Senator Cruz’s support.

The Washington Times published an article entitled “As Sen. Ted Cruz gives a long speech, Treasury gets short on funding” which focused on the Cruz filibuster, but also touched on the debt limit issue.  According to that article,


“The Treasury Department said Wednesday that it has less than a month’s worth of room to maneuver before it hits the debt limit, dropping yet another major fiscal deadline in the lap of a Congress already stymied over the annual spending bills.”

Now wait a second. . . .

I thought the “debt limit” was a number rather than a date.

In fact, I thought we’d hit the current, numerical debt limit of “$17 trillion” about four or five months ago—but government had continued to spend without regard for that “debt limit”.

But now I learn from The Washington Times that the “debt limit”—which presumably should absolutely not last beyond the end of the fiscal year on September 30th—might last at least several more weeks into October.

That news raised several questions:


1) Is the debt limit a number (like $17 trillion) or is it a date (like September 30th)?

If it’s a fixed number (like $17 trillion), we at least know that the debt limit is.

But if it’s a date–like September 30th or maybe October 19th or some such—that date is not fixed and we don’t even know what that date is, do we?   Therefore,


2) How can there be a “limit” if we don’t know the nature of the limit (numerical or time)?

3) If the “debt limit” is actually a “time limit,” how can it be a “limit” if no one knows exactly when time will run out?


If the Debt Limit is not a numerical limit (and how can it be since the $17 trillion limit was exceeded months ago) and if the Debt Limit is not a time limit (and how can it be if no one knows when time will run out), then what, exactly, is the “Debt Limit”?

Is it even a “limit” (in the sense of “limited government”) or is it merely the illusion of a “limit” (in the sense of a big, unlimited government that can do whatever it likes)?  (Does “limited government” mean lawful government?  Does “unlimited government” mean lawless government?)

Insofar as the “debt limit” appears to be a numerical limit (currently, $17 trillion) that’s imposed by law, and insofar as the government ignored that numerical limit (it was exceeded months ago), can government also ignore its other obligations to obey the law?

If government isn’t bound to obey the law, what binds you and me to do so, other than brute force?  If no brute force is present, should we still obey the law?

Those may seem like radical question, but they were implied by former Supreme Court Justice Louis D. Brandeis who observed in his dissenting opinion in Olmstead v. United States, 277 U.S. 438 (A.D. 1928) that:


“Decency, security, and liberty alike demand that government officials shall be subjected to the same rules of conduct that are commands to the citizen. In a government of laws, existence of the government will be imperiled if it fails to observe the law scrupulously. Our government is the potent, the omnipresent teacher. For good or for ill, it teaches the whole people by its example. Crime is contagious.  If the government becomes a lawbreaker, it breeds contempt for law; it invites every man to become a law unto himself; it invites anarchy.”

Has government’s refusal to recognize the debt limit law bred public contempt for the law?

Yes—but only a little.  I don’t plan to rob a bank because government refused to be bound by the debt ceiling law.

Still, government’s refusal to be bound by the law makes clear that, under the right circumstances, the law is negotiable—more of a recommendation than a mandate.  Obedience seems often optional.

Has government’s refusal to obey the existing debt limit law invited each of us to become lawless?  Has our government, by behaving lawlessly, invited anarchy?

No.  Of course not.  At least, not all by itself.  Instead, government’s failure to obey the debt ceiling law is generally viewed with some bemused cynicism.

But what about in conjunction with knowledge that Congress routinely votes for laws (the “Patriot Act” and “Obamacare” are prime examples) that they don’t even read?  The Supreme Court has repeatedly ruled that the essence of every law is congressional intent.  How can there be any “intent” if Congress hasn’t even read the laws it enacts?

Speaker of the House Nancy Pelosi made it abundantly clear that Congress couldn’t have had any intent when they voted for “Obamacare” when she told the Congress, “But we have to pass the bill so that you can find out what is in it, away from the fog of controversy.” What legislative intent could Congress have had if they couldn’t read the bill until after they voted for it?

If there’s no “intent,” can there really be an enforceable “law”?

And, since Obamacare was enacted, some members of Congress have read the law and realized that it would not only impose significant burdens on the American people, but also (Gasp!) on congressmen and their staffs.  Congress has therefore sought to exempt themselves and their staffs from Obamacare but otherwise, leave ordinary Americans subject to its burdens.

What about Justice Brandeis’ observation that “government officials shall be subjected to the same rules of conduct that are commands to the citizen”?  Should Obamacare be imposed on the people, but not on Congress and their staff?

When Congress exempts itself from any law it imposes on the people, does that inspire your respect for Congress?  How ‘bout your respect for “law”.

The truth is that the debt ceiling “drama” is just one more evidence of a big government that views itself as above the law.  That’s what big, “unlimited” government is all about:  lawlessness.


●  Insofar as “confidence” is essential to maintaining both the economy and the value of the fiat dollar, does government increase or decrease public confidence by behaving lawlessly?

Was Justice Brandeis making a profound observation or merely providing some rhetorical glitter when he warned that “Crime is contagious. If the government becomes a lawbreaker, it breeds contempt for law; it invites every man to become a law unto himself; it invites anarchy”?

By “anarchy” did Brandeis imply economic collapse?

Was Brandeis right when he predicted that the result of lawless government could even include termination of that government’s “existence”?

Is it reasonable to have confidence in an economy or a currency subject to the central planning of a government that’s openly lawless?  Can governmental lawlessness precipitate a general loss of confidence in government that might, in turn, be sufficient to trigger an economic and/or monetary collapse?

Is governmental lawlessness just one more reason to prepare for a serious economic decline?


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25 responses to “Can Government Corruption Cause Economic Collapse?

  1. Jetlag

    September 28, 2013 at 6:24 PM

    “If government isn’t bound to obey the law, what binds you and me to do so, other than brute force?”

    The same things that always bind you and me to obey the law.

    But the government IS bound to obey the law, since everyone who took an oath of office has bound themselves to obey the law established by their employer, We the People.

    And every time such an employee takes a paycheck, they legally affirm this condition of their employment.

    Just because We the People have been negligent managers does not mean our hired help is less bound to fulfill the duties for which they were engaged.

    • Pat Fields

      September 29, 2013 at 2:59 AM

      “The Congress shall have Power to dispose of and make all needful Rules and Regulations respecting the Territory or other Property belonging to the United States; and nothing in this Constitution shall be so construed as to Prejudice any Claims of the United States, or of any particular State.” – Art. IV, Sec. 3, cl. 2

      “Property. That which is peculiar or proper to any person; which belongs exclusively to one.” Black’s 6th Ed., pg. 845

      Obviously, ‘Property’ is synonymous with ‘Jurisdiction’. BOTH are etherial and invisible in their nature. ‘Spiritual’, if one will.

      By ‘volunteering’ one’s self under the municipal jurisdiction and Polity of the city-state of the District of Columbia, ‘residing’ under such extended district jurisdictions (IA, OH, CA, for example, and under the sub-divided taxing ‘Zones’ enumerated with Congressionally proprietary ZIP codes) established for the purpose; the unwary remove themselves from the more powerful protections of their State’s original, ordinary Jurisdiction and Political Membership.

    • Doug

      September 29, 2013 at 6:37 AM

      Jet, your response considers obeying the law without actually focusing upon the “LAW” in its practical application, in my opinion. At one time we actually had a Constitutional Common Law environment wherein the “courts” could maintain that discipline. Then, we became converts.

      The Church of International Banking Thugs connived to establish the FEDERAL RESERVE CENTRAL BANK system and 99.9% of Americans “JOINED.” The Constitution protects our ability to contract, which in essence is what we’ve done. We’ve agreed (in ignorance) to change our form of government to one of privilege vs. rights by accepting the use of “COMMERCIAL PAPER” in lieu of the Gold and Silver Coin required by the CONSTITUTION.

      [The Constitution is an all or nothing legal document and any deviation without the appropriate lawful procedures is impossible. What I’m saying is that the Gold Clause of the Constitution has never been repealed – so what we are experiencing is EXTRA Constitutional].

      It’s called “choice of law.” As long as we agree to operate our lives and business using the debt based fiat currency and the (PRIVATE) FED SYSTEM of Credit (usury) the bankers RULE and the Constitution is just an IGNORED piece of paper.

      Let me add that for the longest time I viewed things exactly like your post indicates you see them. But here’s the nasty little secret: The medium of exchange dictates the choice of law. Usage of commercial paper dictates COMMERCIAL LAW.

      • Tony

        September 29, 2013 at 8:59 AM

        Hi Doug,

        “We’ve agreed (in ignorance) to change our form of government to one of privilege vs. rights by accepting the use of “COMMERCIAL PAPER” in lieu of the Gold and Silver Coin required by the CONSTITUTION. ”

        At the end of the barrel of a gun, as I am sure you know. I refer to Roosevelt’s order that all Americans fork over their gold coin in exchange for those FRN’s.

        What a traitor.


  2. palani

    September 28, 2013 at 9:07 PM

    A key indicator … as reported by AP … Navy Vice Adm. Tim Giardina deputy commander at U.S. Strategic Command, was suspended on Sept. 3 and is under investigation by the Naval Criminal Investigative Service for passing counterfeit casino chips in Council Bluffs Iowa.

    • Yartap

      September 28, 2013 at 11:23 PM

      Hi Palani,

      “A key indicator…” or a key set up? With our gov-co’s corruption – anybody removed may just be a true American Hero. We will see.

      But what disturbs me is that he is #2 in our nuke command. And that he is not the only one. Others have been removed from the nuke command. What’s up at nuke command? Why are so many being removed? How is it that nukes get lost and then turn back up?

      • palani

        September 29, 2013 at 7:04 AM

        @ Yartap … Set ups can be indicators too … and frequently are.

  3. Michael

    September 28, 2013 at 10:56 PM

    You are absolutely correct and right in what you say, pity those that are elected don’t see it that way, nor will they bow down to the masses of a mob to which they see that the people are in their power grip of King and kingdom of graft and corruption, and that they have the power to bend the law in any which way they seem fit to do, for the people have over the decades have sat on their hands, grumbled, cursed, spat, some have been slaughtered, some jailed, some assassinated, the poor and unemployed staved, the people whipped into a corner protesting, the masses lied to with Hitler’s methods’ of mass control , masses manipulated by the millions, nations attacked for global economic take over and control for global business and banking.

    The internet has the truth from many people now talking and giving up the evidence to prove the crimes of the many in power, but which no court of justice will ever hear, for the justice system is but apart of the corruption of the power system over all.

    You have all been warned so long before and did nothing, you are warned again, and again and the evidence only mounts, and you will only wait for the slaughter to begin of your selfish lives that you have all lived, afraid, weak minded, fooled and blind to the reality of the truth, leaderless sheep, with the blood of long ago man’s shepherd’s of truth and his death is still on all your hands, your nation acts as the hands of death over all nations and now over its own people.

    Which God do your Politian’s bow down to? greed and the power of money and profit, and use’s lies, bribery and military force and cite that the blood of the innocent, is the price for world peace. Sheep being slaughtered on Satanism alter of sacrifice, blood for the Goat head. America is not a democracy, its another Kingdom, with a goat for a president acting as a king with all the powers of life and death, the king of the south against the king of the north, and push begins.

    A blind man sees only what he is taught to see by the others who are blind also.
    One can not be given wisdom, one must go out and seek it in all places.
    A blind man stays blind when he accepts it.
    God gives guidance when one seeks the truth, but not all are from Gods guidance.
    Discernment of the truth is the key to what is and what is not.

    A child of God must learn to crawl first and grow in wisdom, and gain understanding before he can run with his father.

    There is more, but I will refrain for now.

  4. Joseph LAmarca

    September 28, 2013 at 11:14 PM


    basing the coins. if any of the gold or silver coins which

    shall be struck or coined at the said mint

    shall be debased or made worse as to the

    proportion of the fine gold or fine silver

    therein contained, or shall be of less weight

    or value than the same out to be pursuant to

    the directions of this act, through the

    default or with the connivance of any of the

    officers or persons who shall be employed at

    the said mint, for the purpose of profit or

    gain, or otherwise with a fraudulent intent,

    and if any of the said officers or persons

    shall embezzle any of the metals which shall

    at any time be committed to their charge for

    the purpose of being coined, or any of the

    coins which shall be struck or coined at the

    said mint, every such officer or person who

    shall commit any or either of the said

    offenses, shall be deemed guilty of felony,

    and shall suffer death.


    Date: Sat, 28 Sep 2013 19:32:09 +0000 To:

    • Doug

      September 29, 2013 at 7:10 AM

      Bingo,bango, Obongo ! When we finally realize the high intelligence of our founders and deny our “egos” maybe then we’ll realize that we forfeited our Constitutional Government in lieu of a debt based fiat credit system and a few “benefits” offered like cheap steak knives for OPENING a new bank account. (Social Security, medicare, credit cards, and other welfare crap)

      I find it ridiculous that so many really smart people are constantly babbling about the (boo hoo) constitutional violators when IN FACT Americans traded their “panties” for some “cookies” baked by the bankers and political jackals.

      Joseph, your post goes directly to the issue of relevance – It’s the money and all of the associated legal dictates. Thanks for your post … looks like the founders were extremely serious about anyone trying to COUNTERFEIT or change the monetary system. They understood the form of government and its laws are all contingent upon each other. Simply put, the SUPREME LAW OF THE LAND demands the medium of exchange (money) to be drawn FROM THE LAND as well.

  5. Pat Fields

    September 29, 2013 at 2:29 AM

    Even where productive enterprise is concerned, organized corruption in ANY sector of society is destructive of optimum economic integrity. The more enforceable that corruption is, the greater its effect. That’s why criminal con-men gravitate to government especially.

    • Jetlag

      September 29, 2013 at 4:32 AM

      And that’s why the criminal mafia that hijacked our government goes to such lengths to keep crime fighters from also gravitating to government.

      The criminals’ most useful tool in this regard is probably the “anti-government” counter-culture they hard sell through their false-alternative media.


    September 29, 2013 at 2:55 PM

    hello, Al, I am moving e-mail to; pls cancel this e-mail site, thank you, jacob

  7. Adrian

    September 29, 2013 at 2:55 PM

    A lot of nonsense.This crooks are no Government.THEY rule by mob rule.All that dead history keeps you trapped in THEIR illusion.The FED Bank operates on debt and credit.US Inc. is just a tool in THEIR hands.
    The Church of Rome(Vatican) controls the STATES.
    People( slaves) worship( perform) for the STATES in the name of GOD(Pope).
    The question is: Who are you?

    • Ugly Truth

      September 29, 2013 at 6:17 PM

      The question I would ask is: what are you, a man or a human being?

      • Adask

        September 29, 2013 at 10:09 PM

        I am a man made in God’s image and endowed by my Creator with certain unalienable Rights.

      • Martens

        September 30, 2013 at 9:10 AM

        I’d say it is an excellent idea to testify that one is a “man made in God’s image”, despite this being a redundant phrase because there is no other type of man in existence.

      • Ugly Truth

        October 3, 2013 at 4:11 AM

        “… endowed by my Creator with certain unalienable Rights.”

        Inalienable rights: Rights which are not capable of being surrendered or transferred without the consent of the one possessing such rights. Morrison v. State, Mo.App., 252 S.W.2d 97, 1 0 1 .
        Blacks 5th ed

      • palani

        October 3, 2013 at 5:30 AM

        The old “un-” vs “in-” dilemma when the topic is ‘alienable’ has a solution. Think of your neighbors garage on fire and you rush in to find two containers filled with fluid. One container is marked INFLAMMABLE and the other is marked UNFLAMMABLE. Which container are you likely to have more success with putting out the fire?

  8. PETER

    September 30, 2013 at 11:26 AM

    The economy has essentially been collapsing since A.D. 1982 as evidenced by falling interest rates since that time. The super bull market in fraud has been in high gear since then. Question, is there such a thing as a bear market in fraud?

    • Adask

      October 1, 2013 at 2:30 AM

      I’m not sure that I understand your question about a “bear market in fraud”. If you’re asking of the various markets are subject to fraud not only when there’s a bull market (and prices are rising) but also in a bear market (when prices fall), I’d answer as follows: If the purportedly “free” markets are actually “manipulated” markets, they are fraudulent regardless of whether they go up or down. The manipulators rig the markets to rob the people when the prices go up, and later, when the prices go down. If they manipulate prices on the way up, it’s inconceivable that they don’t also manipulate prices on the way down. If the markets are being manipulated, they manipulators profit regardless of whether there’s a bull or bear market trend.

    • Doug

      October 2, 2013 at 6:09 AM

      I’d say the economy has been collapsing since 1913. The country was bankrupt 20 years after the FED was created. The people of the world (generally speaking) are existing in a virtual la la land where they have become slaves to the international bankers and they’re so stupid they don’t even know it.

      All of the “market” talk is more BS created for the consumption of “fools” !

      • palani

        October 2, 2013 at 7:18 AM

        @ Doug “I’d say the economy has been collapsing since 1913.”
        Speaking of ‘economy’ is synonymous with discussing CAFR. Government views the economy as something THEY created and for THEIR benefit. So to suggest that the economy has been collapsing for a century would belie the fact that government employment has skyrocketed.

  9. Peter

    October 1, 2013 at 1:56 PM

    I suppose the question should be more like, do we stand a chance of ever having a system that is once again built upon a system of lawful money ? Must we endure this fraudulent system untill it reaches it’s apex? Fraud like fire, eventually burns out? Has Babylon has been rebuilt,yes, are we witnessing the events that must take place before the judgement written in Revelation 18 is to unfold?

    The manipulation in the silver and gold markets may be a blessing, by the force being used to hold them down it allows the jonny come lately folks to get in at reasonable levels, heck it allows me to continiue to purchase at reasonable levels still, but maybe not much longer…

  10. Peter

    October 2, 2013 at 12:25 PM

    Very well spoken palani, it’s the US and THEM concept, we have been in decline as a “Free People”, they have been in an unprecedented boom since around A.D. 1913. There exists the possibllity that the cyclical expansion of fiat paper may be close to exhaustion and that which was in place before A.D. 1913 is being established once again. The only problem is it is being established outside of this country via the BRIIICS nations, this country may have an “IRON CURTAIN” constructed around it and around the minds of over 90% of the populous.


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