Dealing with the Federal Bully

07/12/12 • 8 min

Tenth Amendment Center: Constitutional Conversation

During a recent radio appearance, a caller challenged my assertion that state legislatures should nullify the federal health care act, along with a slew of other unconstitutional measures.

His reasoning?

The federal government might be mean to us.

He came up with a litany of actions the feds might take. They could yank all of the state’s funding. That would mean no more roads or schools! They could stop paying benefits to people living in the state and create a rebellion of dependent people. They could virtually quarantine and isolate the state until it complies. Heck, they could even roll tanks into the streets!

OK, he didn’t include the tanks, but I honestly think that was in the back of his mind. The caller was clearly in awe and scared to death of the federal government. He wasn’t about to risk its wrath for something as trivial as stopping them from cramming a one-size-fits-all health care system down 300 million American throats.

At the time, I tried to convince the caller that the feds wouldn’t dare retaliate in that manner. It would prove politically suicidal. I argued the feds would likely back down, especially if a bunch of states nullified. That was, after all, Madison’s viewpoint.

Should an unwarrantable measure of the federal government be unpopular in particular States, which would seldom fail to be the case, or even a warrantable measure be so, which may sometimes be the case, the means of opposition to it are powerful and at hand. The disquietude of the people; their repugnance and, perhaps refusal to cooperate with officers of the Union, the frowns of the executive magistracy of the State; the embarrassment created by legislative devices, which would often be added on such occasions, would oppose, in any State, very serious impediments; and were the sentiments of several adjoining States happen to be in Union, would present obstructions which the federal government would hardly be willing to encounter.

But when I thought about it later, I had to concede the caller had a point. The feds might well retaliate. They could certainly yank funding. They could conceivably tell the “rebellious” states they weren’t providing any more federal assistance. Heck, if things got really crazy, the feds could even roll in federal agents, arrest state legislators and declare martial law.

Would they?

Probably not.

Could they?

Certainly.

On paper, the federal government could crush any state, or even a number of states united in opposition. It is big, powerful and overbearing.

So was England in 1776.

In fact, England arguably stood as the most powerful nation on the planet at the time. It was said “the sun never sets on the British Empire.” Her navy ruled the seas. Her army could turn vast fields into a sea of red. She wielded enormous economic power. And she held the colonies tightly under her thumb.

But that didn’t stop the Americans from looking the British square in the eye and declaring, “We will live as free and independent people!”

The colonists valued liberty more than security, especially a false security under a despotic and tyrannical ruler who refused to respect any limits on his own power. I’m certain more than one hand trembled as it gripped a quill pen and inked a name on the Declaration of Independence. Those men must have felt the icy fingers of fear as they boldly pledged their lives, their fortunes, and their sacred honor.

And this guy is afraid the feds might yank some funding.

Wow.

At some point, you must face down a bully. You can only let him take your lunch money for so long. If you continue to allow him to dominate you, he will take more and more and more. At some point, you’ve got to punch him in the nose.

Yeah, he might punch you back.

You know what? Then it’s on.

Get the New Documentary Today!

The U.S. federal government thinks its power unlimited. The feds believe they can control any and every aspect of your life. If they can’t directly control it, they will tax you into submission. The general government has no respect for its constitutional boundaries and mocks the states that created it – the states it was meant to serve, not lord over. The Supreme Court decision legitimizing the insurance mandate... I mean penalty – err, tax – should prove to everybody once and for all that the feds will never limit the power of the feds. Washington D.C. won’t fix the problem that is Washington D.C.

The states must stand up and do their duty. They must interpose to halt the progress of evil. Nullification IS the rightful remedy. Not a rebellion, but a legitimate check on federal power.

We simply cannot live in fear. If we do, we will live in chains...

During a recent radio appearance, a caller challenged my assertion that state legislatures should nullify the federal health care act, along with a slew of other unconstitutional measures.

His reasoning?

The federal government might be mean to us.

Would they?

Probably not.

Could they?

Certainly.

On paper, the federal government could crush any state, or even a number of states united in opposition. It is big, powerful and overbearing.

So was England in 1776.

But that didn’t stop the Americans from looking the British square in the eye and declaring, “We will live as free and independent people!”

And this guy is afraid the feds might yank some funding.

Wow.

Yeah, he might punch you back.

You know what? Then it’s on.

Get the New Documentary Today!

The states must stand up and do their duty. They must interpose to halt the progress of evil. Nullification IS the rightful remedy. Not a rebellion, but a legitimate check on federal power.

We simply cannot live in fear. If we do, we will live in chains...

Previous Episode

Uncelebrating the Fourth of July

by Harry Browne, Originally written July 2003

Unfortunately, July 4th has become a day of deceit.

On July 4, 1776, the Continental Congress formally declared its independence from Great Britain. Thirteen years later, after a difficult war to secure that independence, the new country was open for business.

It was truly unique – the first nation in all of history in which the individual was considered more important than the government, and the government was tied down by a written Constitution.

It was the one nation where you could live your life secure in the knowledge that no one would ask for your papers, where you weren’t identified by a number, and where the government wouldn’t extort a percentage of your income as the price of holding a job.

And so each year July 4th has been a commemoration of the freest country in history.

False Celebration

But the America that’s celebrated no longer exists.

The holiday oratory deceitfully describes America as though it were the unique land of liberty that once was. Politicians thank the Almighty for conferring the blessings of liberty on a country that no longer enjoys those blessings. The original freedom and security have disappeared, even though the oratory lingers on.

What made America unique is now gone, and we are much the same as Germany, France, England, or Spain, with:

confiscatory taxes,
a Constitution and Bill of Rights that are symbolic only – merely documents used to justify governmental actions that are in fact prohibited by those documents,
business regulated by the state in the most minute detail,
no limits on what Congress or the President might decide to do.

Yes, there are some freedoms left, but nothing like the America that was and nothing that you can’t find in a few dozen other countries.

The Empire

Gone, too, is the sense of peace and security that once reigned throughout the land. America, bound by two huge oceans and two friendly neighbors – was subject to none of the never-ending wars and destruction that plagued Europe and Asia.

Now, however, everyone’s business is America’s business. Our Presidents consider themselves the rulers of the world – deciding who may govern any country on earth and sending Americans to die enforcing those decisions.

Whereas America was once an inspiration to the entire world – its very existence was proof that peace and liberty really were possible – Americans now live in fear of the rest of the world and the rest of the world lives in fear of America.

The Future

Because the education of our children was turned over to government in the 19th century, generations of Americans have been taught that freedom means taxes, regulations, civic duty, and responsibility for the whole world. They have no conception of the better life that could exist in a society in which government doesn’t manage health care, education, welfare, and business – and in which individuals are free to plot their own destinies.

Human beings are born with the desire to make their own decisions and control their own lives. But in most countries government and social pressures work to teach people to expect very little autonomy.

Fortunately, in America a remnant has kept alive the ideas of liberty, peace, and self-respect – passing the concepts on from generation to generation. And so today millions of Americans know that the present system isn’t the right system – that human beings aren’t born to serve the state and police the world.

Millions more would be receptive upon being shown that it’s possible to have better lives than what they’re living now.

Both groups need encouragement to quit supporting those who are taking freedom away from them.

Become a member and support the TAC!

You and I may not have the money and influence to change America by ourselves, but we can keep spreading the word – describing a better society in which individuals are truly free and government is in chains (instead of the opposite).

And someday we may reach the people who do have the money and influence to persuade tens of millions of Americans to change our country for the better.

I don’t know that it’s going to happen, but I do know it’s possible. I know that the urge to live one’s own life is as basic in human beings as the will to live and the desire to procreate. If we keep plugging away, we may eventually tap into that urge and rally the forces necessary to restore the real America.

And then the 4th of July will be worth celebrating again.

Harry Browne (RIP 1933-2006), the author of

Next Episode

End the Fed! Whether Congress Wants us to or Not!

Since its inception, the Federal Reserve’s monetary policies have led to a decline of over 95% in the purchasing power of the U.S. dollar. As a result, there have been several attempts to reduce or even eliminate the Federal Reserve’s powers.

Louis T. McFadden led efforts in the 1930s. Wright Patman pressed again in the 1970s. Henry Gonzalez got things moving in the 1990s. And, Ron Paul has led the charge for more than twenty years now. In nearly eighty years, though, none of these efforts have succeeded.

And, even with House passage of Ron Paul’s Audit the Fed bill earlier today, it’s highly unlikely that the imperial Senate would ever allow light to be shed on the actions of its financial backer. Resistance to these efforts is seriously entrenched.

But yet, a large number of people across the political spectrum want to know what goes on behind the Fed’s curtain. And with calls to audit the federal reserve reaching a fevered pitch, it’s a good time to ask the basic question – is this even a worthy effort?

Not to say that you should want a secret national bank, but rather – is this kind of activism the best place for you to put your energy...and hope? Will lobbying the Senate get Harry Reid to allow a vote? Will calling Mitch McConnell change anything? Will Barack Obama or Mitt Romney allow such a bill to pass without their veto?

I believe the answer to all these questions is a big, fat NO.

PULLING THE RUG OUT

On the other hand, in contrast to attempts to put a stop to the Fed at the national level, a paper that William Greene presented at the Mises Institute’s “Austrian Scholars Conference” proposes an alternative approach to ending the Federal Reserve’s monopoly on money. The “Constitutional Tender Act” is a bill template that can be introduced in every State legislature in the nation. Passage would return each of them to the Constitution’s “legal tender” provisions of Article I, Section 10:

“No State Shall...make any Thing but gold and silver Coin a Tender in Payment of Debts”

Such a tactic would achieve the desired goal of abolishing the Federal Reserve system by attacking it from the bottom up – pulling the rug out from under it by working to make its functions irrelevant at the State and local level.

Under the Constitutional Tender Act, the State would be required to use only gold and silver coins – or their equivalents, such as checks or electronic transfers – for payments of any debt owed by or to the State. This includes things like taxes, fees, contract payments, and the like.

All such payments would be required to be denominated in legal tender gold and silver U.S. coins, including Gold Eagles, Silver Eagles, and pre-1965 90% silver coins. The market would then require that all State-chartered banks – as well as any other bank acting as a depository for State funds – offer accounts denominated in those types of gold and silver coins, and to keep such accounts segregated from other types of accounts such as Federal Reserve Notes.

But that’s not all! Not only would the use of Federal Reserve Notes by the State be made illegal; the use of legal tender U.S. gold and silver coins would be encouraged amongst the general population too – by eliminating sanctions against its use.

HOW IT PLAYS OUT

Passage of the Constitutional Tender Act would introduce currency competition with Federal Reserve Notes by outlawing their use in transactions with the State. Ordinary people, being required to pay their State taxes in gold and silver coins, would find it necessary to conduct some transactions with metal – including the use of checks and debit cards based on bank accounts denominated in such coins

All businesses operating within the State, being required to pay their State sales taxes and license fees in gold and silver coins, would need to do the same. Most importantly, though, in order for businesses to acquire the amount of gold and silver needed, they find it necessary to offer their goods and services in “dual currency” denominations, where customers could choose to pay in Federal Reserve Notes or gold and silver coins.

This kind of “bottom up” approach to ending the Fed will have a greater likelihood of success than the “top-down” approaches we’ve seen over the years for two major reasons:

1. The top-down approach has been an utter failure. While it has succeeded greatly in an educational role, it has simply not worked tactically.

2. It’s decentralized. Political opposition won’t be as strong or well...