If you love history as much as I do, especially American history, and appreciate its relevance in today’s world (those who do not learn history are doomed to repeat it), then you will enjoy the following essay by Madame Defarge, the topic of which is Alexander Hamilton’s Assumption initiative, implemented to bail out America’s bankrupt states.
Hamilton, the quintessential federalist and founding father of “big government,” won his Assumption initiative, part and parcel of the Funding Act of 1790, better known as the Compromise of 1790. In return, Jefferson and Madison were permitted to choose the location of the new national capital which they placed on the banks of the Potomac, just upriver from its namesake’s Mount Vernon estate.
As American cities and states continue to pile up huge debt, for which they possess insufficient means to repay, is it possible that We the People will be called upon again to assume this irresponsible debt? It is very likely.
Should We the People be called upon again to bail out America’s insolvent cities and states, I would favor the bailout under one condition – we are permitted to choose the location of the Democrat National Committee headquarters (broke cities are Democrat-run cities). My choice would be Pyongyang or Tehran so as to concentrate the planet’s totalitarian fascists.
by Madame Defarge
In the early days of the republic under President Washington a crisis threatened to tear the infant country apart. The two sides of the issue were led by Jefferson and Madison against Washington and Hamilton.
Hamilton was in effect Washingtons’ prime minister and they had the burning desire to have a strong central government. Patrick Henry had warned against this by opposing the constitutional convention as a curse that would lead to a tyrannous central government. He had the political power in Virginia to stop the approval of the Constitution. Washington begged him to approve it and he finally relented.
Henry’s prediction came true quickly with the Assumption crisis and the national bank. Since the US had no central bank and could not compel the individual states to pay their debts that were run up during the revolution, money for expansion from the lenders in Europe was cut off.
The answer of Hamilton was the assumption of the debt by the entire country equally. This caused a great outcry as the southern states by and large had already paid their debts and did not want to be required to bail the yankees out.
Hamilton talked Jefferson and Madison into it and thus began the road to the bankers against the people. This was because the plantation owners had to borrow money to pay an extra set of taxes. Since the bankers were not socially acceptable locally, the only place to go was New York. This led to a concentration of funds for these bankers and the country.
The expansion of the plantation system accelerated quickly and we became locked into two regional economic models that were at odds. The tariffs were hated by the South and slavery was an irritation in the North.
Today we have a similar problem gradually surfacing. It could also be called Assumption. Oops! We never learn! This time we have the urban centers and liberal states on the verge of bankruptcy. Connecticut , Illinois, Michigan and California are teetering on the edge. Virtually every major city has too large a debt to survive. The Southern and Midwestern states have been fiscally responsible and are not in danger of default.
Do the rest of the states want to bail out their social nirvana betters? I doubt it. The irresponsible states are also the ones that have been guilty of Nullification regarding the sanctuary city/state ideas. That brings more costs to the local taxpayers. These areas will soon have to come to DC hat in hand begging for relief.
The voters will say no money. The bankers will scream “the whole world will collapse if you don’t bail us out!” It is the same old whine we got in 2008. Jackson saved us in 1834. Sadly I doubt we have a tough enough leader on the horizon to deal with them properly. (A rope would do the trick.)
Today we have McConnell, Feinstein, Biden and Schumer to name a few of our politicians. They are of course well paid by the world government/banking crowd. They will do as they are told and vote more debt on the backs of the US taxpayer. This financial group is firmly in the saddle and will never willingly dismount.
The European populist elections have shown that there is a gradual awakening on that continent. With the Brexit group in the UK getting back on track a new dynamic is forming. A Europe ruled by Germany is still on the table but without the UK, it is a small quibble indeed. They have already spent their money and for all their blustering they are not significant players. This leaves the US as the only financial power globally.
Mr. Trump is standing up to China but is letting his Wall Street friends and family push for open borders. If this great open money sluice is not closed we will see a reckoning fairly quickly.
This time it will not be just the socialist DC crowd to fight, we will have to deal with a starving world that has to come to us to survive. The Visigoths and Huns will again be on the move in the form of latin Americans and muslims. We can stop them or face 1000 years of darkness as Europe has already experienced.
We as US citizens must stand up for our rights because our politicians are well paid not to. The cost to repair their mistakes is too great. Memorial Day reminds us of the ultimate cost of Wall Street/world government greed.