Orrin Woodward on LIFE & Leadership

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    Former Guinness World Record Holder for largest book signing ever, Orrin Woodward is a NY Times bestselling author of And Justice For All along with RESOLVED & coauthor of LeaderShift and Launching a Leadership Revolution. His books have sold over one million copies in the financial, leadership and liberty fields. RESOLVED: 13 Resolutions For LIFE made the Top 100 All-Time Best Leadership Books and the 13 Resolutions are the framework for the top selling Mental Fitness Challenge personal development program.

    Orrin made the Top 20 Inc. Magazine Leadership list & has co-founded two multi-million dollar leadership companies. Currently, he serves as the Chairman of the Board of the LIFE. He has a B.S. degree from GMI-EMI (now Kettering University) in manufacturing systems engineering. He holds four U.S. patents, and won an exclusive National Technical Benchmarking Award.

    This blog is an Alltop selection and ranked in HR's Top 100 Blogs for Management & Leadership.

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Financial bondage is a form of slavery.

Albert Jay Nock – Our Enemy the State

Posted by Orrin Woodward on December 27, 2009

In the last two months, I have enjoyed two books from Albert Jay Nock immensely.  One is his classic, Our Enemy the State and the second was Memoirs of a Superfluous Man.  Every serious student of the present economic conditions in the United States of America should read both of these classics.  Nock’s prose is enjoyable to read in itself, but when combined with a powerful intellect full of ideas and stunning wit yields an over the top experience!  I wish I had read Mr. Nock’s books much earlier in my own intellectual journey.  Start with Our Enemy the State and follow it up with Memoirs of a Superfluous Man.  I promise you that it will make you think and question some of your existing presuppositions.  Learning is a process of sharpening your thinking on the greatest minds of the ages and Albert Jay Nock is certainly one of the minds of the ages.  Below is a short biography on Mr. Nock. God Bless, Orrin Woodward

Albert Jay Nock

Few authors wrote about individualism as elegantly as Nock (1870-1945). He brought impressive knowledge to any subject he wrote about, and he expressed himself with remarkable grace and style. As H.L. Mencken remarked, “Nobody gives a damn what you write–it’s how you write that interests everybody.”

Yet for many libertarians, he was a blazing light in the vast darkness of the 20th century. Nock denounced the use of force against peaceful people. He believed one ought to be able to do just about anything as long as it doesn’t hurt other people. He urged Americans to stay out of foreign wars which subvert civil liberties at home and seldom secure liberty abroad.

He launched The Freeman magazine (1920-1924) which, although it published articles by leading “progressives,” became known for his own individualist commentary. He focused on ideas his book Mr. Jefferson (1926) was concerned not about the famous events of Jefferson’s life but about his ideas. Historian Merrill Peterson called the book “The most captivating single volume in the Jefferson literature.” Nock collaborated on four volumes about the 16th century French individualist Francois Rabelais. He did a book on the social philosophy of Henry George (1929).

Nock was invited to lecture at Columbia University, and he subsequently turned the texts into one of his most famous books, Our Enemy, the State (1935). He brought together ideas of Jefferson, pamphleteer Thomas Paine, German sociologist Franz Oppenheimer and English philosopher Herbert Spencer. He presented fundamental issues with refreshing clarity. Nock wrote “There are two methods, or means, and only two, whereby man’s needs and desires can be satisfied. One is the production and exchange of wealth; this is the economic means. The other is the uncompensated appropriation of wealth produced by others; this is the political means.”

He produced a number of superb essays which have appeared in various collections. Reader favorites would probably be “On Doing the Right Thing” (1924) and “Isaiah’s Job” (1936). “The practical reason for freedom,” he reflected, “is that freedom seems to be the only condition under which any kind of substantial moral fibre can be developed–we have tried law, compulsion and authoritarianism of various kinds, and the result is nothing to be proud of.”

The Disadvantages of Being Educated and Other Essays presents Nock’s elegant and radical essays on the state, education and liberty. Nock presents a case that not everyone can be educated and that therefore compulsory government schooling is doomed to failure. What many people describe as education, he notes, is really training for medicine, law, or some other trade, and while competence is obviously important, the training is different than education. He explains his refreshing views on authentic liberal education. Delightful book. Nock’s Cogitations is an elegant commentary on liberty, the state, economics, war, politicians, art and more.

Nock’s best-known and most charming work is Memoirs of a Superfluous Man (1943). He skipped the details of his life and chronicled the development of his ideas. He spoke out with refreshing candor about the “superstitious servile reverence for a sacrosanct State.” He discussed the evils of government schools. With the world engulfed by collectivism and war, he was pessimistic. Yet his determination to quietly persevere with his individualist views inspired later generations to carry on.

Posted in Finances | 2 Comments »

J. S. Kim – The Role of Central Banks

Posted by Orrin Woodward on October 1, 2009

Here is an informative article from J. S. Kim, one of the best minds on economics and government policy in the marketplace.  Mr. Kim has consistently beat the market and, like Peter Schiff, studies the underlying principles behind government policies to predict accurately.  We need less rhetoric from our government and more principle based leadership.  I encourage everyone to start educating yourself on Austrian Economics, because it is the only economic training that has consistently predicted the effects of government intervention. 

I posted an interview with Mr. Kim that explains his investment strategy.  The underlying principles reveal that the relationships with Government and Central Banks are more important than serving the customer.  This is another example of the end of free enterprise and to corporatocracy worldwide.  The totalitarians lost the cold war, but are winning the economic war.  This is not a good trend for freedom loving citizens of the world.  Mr. Kim states that the Central Banks are more powerful than any government in the world!  Throughout history, debtors are in bondage to their creditors.  We cannot afford to remain ignorant of this slide into government ownership and control.  God Bless, Orrin Woodward

[youtube=http://www.youtube.com/watch?v=UQyeeeq4Nt0&w=425&h=344]

 

All global economic problems today are rooted in the existence of Central Banks and their commitment to an application of destructive Keynesian economic theories to our global monetary system that simply has not worked for the better part of this century. Within the realm of academics, monetary policy, politics and media, there is a persistent refusal to acknowledge the primary role Central Banks undertake in artificially creating boom-bust cycles that would not occur in such severe fashion were Central Banks simply willing to step out of the way and allow free market forces to operate.

 

If you ask anyone who graduated from Wharton, Harvard or Oxford, or any number of other Western universities, with a degree in business or economics, who Alan Greenspan is, I guarantee you that he or she knows (I myself graduated from the University of Pennsylvania). However, ask them who Friedrich A. Hayek is, and I doubt if anyone knows. Yet those of us that adhere to Austrian economic theories have used our understanding of sound monetary principles to accurately predict all steps of this crisis since 2006.

 

So how did I learn about Austrian economic theories despite never having heard of Friedrich A. Hayek during my entire 18 years of schooling? For the last 15 years, I taught myself what the institutionalized formal educational system refused to teach me. Despite the successful accuracy of our past predictions, even today, we are summarily dismissed as crazy “gloom and doomers,” while those that steadfastly adhere to Keynesian economics principles (all Western Central Banks as well as the governments and politicians they control), upon reflection, are the ones guilty of the predominant body of wildly inaccurate, unsound, and failed predictions over the past 3 years. Need a sample? How about the US housing markets being fine and properly valued? How about the US being on a path to full employment? How about strong future economic growth and a boom in US exports? Though in hindsight, these predictions sound more like the ramblings of a madman, these predictions were all made by our current Federal Reserve Chairman, Ben Bernanke, in 2005 and 2006.

 

In reality, if we strip away the divisive jargon of politics, gloom and doomers are not the perpetual pessimists we have been inaccurately and unfairly portrayed as by the media (for even I told my clients just five months ago that a 1,000 point rise in the DJIA was entirely plausible though the Dow’s climb has admittedly been twice my expectation since). In reality, we are merely strong proponents of the Austrian School of Economics. In the Western sphere of academia, the principles advocated by the Austrian School of Economics have been so silenced that most of us who graduated from Western institutions of education with MBAs, graduated never having heard of Friedrich A. Hayek, one of the pioneers of the Austrian School of Economics. This, despite the fact that his economic principles are so important that he is the most quoted economist in the acceptance speeches of Nobel Prize winners in economics.

 

In fact, by cleansing banking history and monetary policy in all textbooks of any honest discourse about the Austrian School of Economics, Central Banks have even shut out nearly all Western educated young men and women from possibly understanding the true roots of this crisis. The reason for this is simple: If people understood Austrian economic principles, there would be instantaneous revolt in the Western hemisphere against the loony monetary principles enforced upon us by Central Banks. Ignorance is the great pacifier. Those who are ignorant of Austrian economic principles and most hurt by the financial oligarchs that inflict Keynesian economic policies often the economy often serve as their staunchest defenders and apologists. For example, the retail investor who defends current stock market rallies in China, Europe and the US as “fundamentally sound” and “sustainable” will be the first person to be wiped out when these rallies ultimately and necessarily crash.

 

It is an absolute lie when the media and financial executives stated last year that no economist foresaw the blowback of decades of loose monetary principles that created the perilous situation the world suffered in 2007 and 2008. And when they tell us that this crisis has bottomed, this is a lie too. It is true that no Keynesian economist forecast this crisis; however, there were plenty of Austrian economists who forecast nearly every step of this crisis months and even years before this crisis unfolded. I, myself, back in September of 2006 started writing about a “Peak Investment Crisis” and I was hardly the only one who foresaw the depth of this crisis more than 3 years ago.

 

Furthermore, one could review the very public predictions of self-proclaimed adherents to Austrian economic principles such as Jim Rogers, Max Keiser, Ron Paul, Peter Schiff and many others for the past 3 years as well. I am very confident that you will find that strong proponents of Austrian economics were well accurate in the majority of their predictions while all of our banking and political leaders were atrociously inaccurate in their predictions as a group. Given the huge chasm in the accuracy of predictions between proponents of Austrian and Keynesian economics, were it not for a realization that the media are shills for the financial oligarchs, it would indeed by perplexing to try to understand why they continue to marginalize the accurate predictors as “gloom and doomers” and continue to heap praise upon the atrociously poor predictors. I, for one, refuse to give power or credibility to the term “gloom and doomers” as it surely is a favored discrediting tactic of the financial oligarchs that rule the US Federal Reserve and the world’s other Central Banks.

 

The US Federal Reserve has always been eager to re-inflate collapsed asset bubbles with cheap credit and ultra-loose monetary policy (just reference the actions of the US Central Bank, post-crash, after the 2000 dotcom stock market crash, and the more recent US housing crash). In the face of a runaway asset bubble, however, Central Banks have always been reluctant to rein in the flood of malinvestment created by their loose (and damaging and foolish) monetary policies by raising interest rates. In fact, the only time that I can recall the US Federal Reserve proactively, instead of reactively, attempting to curb inflationary bubbles was in the late 70’s and early 80’s, when they raised the Fed Funds interest rate to 20.00% in order to serve a larger private agenda and prevent the US dollar from collapsing.

 

But today, eager to reinflate the stock market after the US housing market plunge, they have successfully re-inflated the US S&P 500 to a P/E valuation that, for the last four months, has been 7.5 times higher than its historical average of 17.79. And as usual, the US Central Bank stated yesterday that they have no interest in stopping this runaway malinvestment bubble either as they stated they will leave interest rates near zero for the foreseeable future.

 

Central Bank policies, as usual, only serve to postpone and exacerbate the problems that their loose monetary problems create by engineering illusory recoveries that are entirely borne out manipulating the monetary system that they control, but that have zero basis in fundamentally sound economic principles. What do I mean by this? It is quite simple. When economies struggle, Central Banks never seek to solve the root of the problem, but instead, choose to artificially cut interest rates due to Keynesian economic theories, even when free market dynamics call for no such actions. Consequently, a flood of cheap credit leads to spikes in investment borrowing solely due to cheap credit and not because of the existence of appealing investment opportunities that offer good growth prospects.

 

The flood of easy money that Central Banks create now needs a home, as investors don’t borrow money to earn less than 1% annual interest in a bank savings account. The home, outside of entrepreneurs who may reinvest this money into their own businesses, is either the real estate market or the stock market. In the case of the stock market, since the stock market was not demanding more new money but has been force-fed new money, it continues to absorb the excess liquidity artificially created by Central Banks even when stocks are already fairly valued and even overvalued. This is Central Bank force-fed malinvestment, not economic recovery, and outside of the manipulation of Wall Street high frequency computer trading programs, this is precisely how we ended up with an S&P 500 with a P/E over a 133 for the last four months.

 

In reality, if free markets were free of Central Bank meddling, and allowed to function and set interest rates, proper interest rates would be set, and the appropriate amount of borrowing and investment or disinvestment would occur in US stock markets to achieve a healthy valuation of stocks. Instead, when Central Banks’ artificially create excess money that free markets do not demand, excess money chases poor investments, distort asset prices, and create an extended period of malinvestment. So while periods of malinvestment can last for exceptionally long periods of time as long as Central Banks keep shoving cheap credit down the throat of the economy, the “economic recoveries” they produce are unsustainable and therefore nothing more than prolonged periods of ill-advised malinvestment. Under these conditions, every higher rise is, in reality, nothing but a greater distortion and move away from fair market values that plant the seeds for a future disastrous and inevitable crash that cannot be prevented.

 

A recovery under these conditions, commonly and erroneously referred to by the media as a “boom”, is not a “boom” at all, but a mass distortion of prices not set by free market forces of supply and demand, but deliberately engineered by foolish Central Bank monetary policies that successfully “bait” foolish individuals and institutions. History tells us that malinvestments always end up in busts. Not in small corrections and further sustainable growth for the next five years as Keynesian economists would want you to believe, but in spectacular busts. This is why I can be 100% sure that a spectacular bust is in the future of the US stock markets and that the only question that remains is the timing of this bust.

 

And when the bust that is inevitable occurs, you can be 100% sure that the financial shills that are our mass media will once again erroneously describe the “bust” as an “unforeseeable event”. Through the lens of an Austrian economist, this bust is necessary as it is part of the market’s self-healing process whereby it sheds itself of the distorted value caused by prolonged malinvestment and returns assets to their proper fair market valuations. Of course, in the process of the bust, panic often ensues which depresses assets below fair market valuations.

 

In fact, if one just switches the media’s descriptions for stock market rises and gold and silver market rises, then one would have a correct representation of reality. Stock market rises that are described as sustainable and healthy are more apropros descriptions for the rises in gold and silver markets, whereas the speculative bubbles they use to describe gold and silver markets is a more fitting description for the stock markets.

 

For the reasons described above, I am 100% certain that the reinflation of the US stock market, the Chinese stock markets and the European stock markets will all end up in disastrous busts. People don’t understand that the predictions made by the small handful of us who advocate Austrian economic principles are not driven by a genetic propensity towards pessimism. To the contrary, our predictions are driven by the logic of real world application.

 

For the last century, Central Banks have interfered with free market forces and imposed loose monetary policies that have led to the formation of asset bubbles that were unsustainable in nature. In every single instance, these bubbles did not undergo mild corrections and further periods of sustained growth, but all eventually experienced spectacular crashes. Thus, the continued application of the same strategies by Central Banks today are already predestined to fail in the same manner. To call Austrian economics a “doom and gloom” economic theory is a great miscarriage of justice. If its sound principles were applied by world governments, then sustainable steady growth could be achieved without the cycles of boom and bust we experience every four or five years.

 

If the media insists on playing the role of financial shills and calling advocates of Austrian economics “gloom and doomers”, the least they could do is reciprocate and label Central Banks and all proponents of their monetary policies as “psychopaths”. Though one may believe such a label to be unduly harsh, the clinical definition of a psychopath is one who regularly engages in antisocial behavior and exhibits a chronic disregard for ethical principles. When Central Banks continually engage in the same loose monetary schemes when they already know that the end result will be massive failure, this behavior embraces the clinical definition of a psychopath. What the people have failed to realize for the better part of this past century is that the private families that own and operate Central Banks have reaped great rewards from creating these massive failures, with the cost being the great destruction of a nation’s wealth.

                                              

Henry Ford once reportedly stated, “It is well enough that people of the nation do not understand our banking and monetary system, for if they did, there would be revolution before tomorrow morning.” One thing we have learned today is that Central Banks have insured that the people of our nation still do not understand how our banking and monetary system works. For if they understood, they would not be following the road to destruction that is deliberately being paved for us by the US Federal Reserve, not dissimilar to the behavior of suicidal lemmings that follow one another off the edge of a cliff.

 

One tenet that all Austrian economic adherents would support that will never receive any acknowledgment from Keynesian economists is the following: Central Banks are a burden upon all humanity, and that until all are banished from this Earth no progress in economic or political freedoms is possible. It is an absolute myth that Central Banks are necessary for sustainable economic growth and that in their absence, anarchy would reign. There is no historic proof of this. In fact, during periods of history when Central Banks did not exist, much greater economic stability and sustainable growth persisted. If humanity were successful in shuttering all Central Banks, this would be the greatest modern day gift to humanity as true “green shoots” – free markets, economic freedom, and a realistic chance to finally end poverty – would blossom. Central Banks are masters at creating illusory economic recovery, and as we know, all illusions must eventually crumble.

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Peter Schiff in 2006

Posted by Orrin Woodward on September 25, 2009

Peter Schiff is one of the best commentators on Austrian Economics, Political Liberties, and our Founding Fathers in America today.  In 2006, Peter debated the bulls at a mortgage broker conference.  He stated that America was in a real estate bubble that would pop.  Many mocked him, but Peter maintained the courage of his convictions.  This is a long video, but well worth watching for the numerous nuggets shared.  Mr. Schiff predicts so many of our economic woes today that you would swear that he had a time machine!  An understanding of Austrian economics is a must for any future political figure. I encourage everyone to educate themselves on economics, political thought, and history. God Bless, Orrin Woodward

[youtube=http://www.youtube.com/watch?v=jj8rMwdQf6k&w=425&h=344]

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Tim Hawkins – The Government Can

Posted by Orrin Woodward on August 25, 2009

Tim Hawkins is the best clean comedian out there and Laurie and I enjoy watching his videos.  His one liners have become classics in the Woodward family repartee.  Here is one of his best music videos.  Enjoy! God Bless, Orrin Woodward [youtube=http://www.youtube.com/watch?v=LO2eh6f5Go0&w=560&h=340]

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Federal Reserve – An Honest Dollar?

Posted by Orrin Woodward on August 24, 2009

In 1913 there were two big issues in our Congress.  The enacting of the Federal Reserve and the introduction of a Federal Income Tax.  Who said the number 13 was unlucky?  They may be on to something.  Ron Paul states that our dollar is worth only $.04 compared to one dollar in 1913 at the founding of the Federal Reserve.  Did you get that?  Our USA money has been inflated 25 times since 1913!  Inflation is a form of secret tax that drains away net worth without Congress having to approve unpopular higher taxes.  Oh what I would do for more honest men to lead our country!  Watch the video and ponder how inflation kills honest savings and productive effort by bleeding away its value.  God Bless, Orrin Woodward Orrin Woodward Facebook [youtube=http://www.youtube.com/watch?v=A4kxTkhwR_Q&w=425&h=344]

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The Flat World

Posted by Orrin Woodward on July 30, 2009

There are greater opportunities and challenges today that at any time in the history of man.  A person who will read, learn, imagine and lead can make a huge difference across the world.  Are you up for the challenge?  It is time to Launch a Leadership Revolution! Enjoy this incredible video. God Bless, Orrin Woodward [youtube=http://www.youtube.com/watch?v=cL9Wu2kWwSY&w=425&h=344]

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Ten Conservative Principles by Russell Kirk

Posted by Orrin Woodward on June 27, 2009

Russell Kirk pictureI have been reading and enjoying the books of Russell Kirk.  I believe that Russell Kirk takes the great thinking from the Austrian School and tempers it with Christian principles.  I encourage everyone to read the Conservative Mind, Roots of American Order, and any other book from Mr. Kirk.  I am a proponent of change, but change must take into account an understanding of the existing order first.  G. K. Chesterton said, “Never remove a fence line until you determine why it was put there in the first place.”  That is common sense to me and Russell Kirk is full of common sense.  Keep reading and learning as it is one of our moral and civic responsibilities.  Enjoy the article from the Russell Kirk Center. God Bless, Orrin Woodward

Being neither a religion nor an ideology, the body of opinion termed conservatism possesses no Holy Writ and no Das Kapital to provide dogmata. So far as it is possible to determine what conservatives believe, the first principles of the conservative persuasion are derived from what leading conservative writers and public men have professed during the past two centuries. After some introductory remarks on this general theme, I will proceed to list ten such conservative principles.

Perhaps it would be well, most of the time, to use this word “conservative” as an adjective chiefly. For there exists no Model Conservative, and conservatism is the negation of ideology: it is a state of mind, a type of character, a way of looking at the civil social order.

The attitude we call conservatism is sustained by a body of sentiments, rather than by a system of ideological dogmata. It is almost true that a conservative may be defined as a person who thinks himself such. The conservative movement or body of opinion can accommodate a considerable diversity of views on a good many subjects, there being no Test Act or Thirty-Nine Articles of the conservative creed.

In essence, the conservative person is simply one who finds the permanent things more pleasing than Chaos and Old Night. (Yet conservatives know, with Burke, that healthy “change is the means of our preservation.”) A people’s historic continuity of experience, says the conservative, offers a guide to policy far better than the abstract designs of coffee-house philosophers. But of course there is more to the conservative persuasion than this general attitude.

It is not possible to draw up a neat catalogue of conservatives’ convictions; nevertheless, I offer you, summarily, ten general principles; it seems safe to say that most conservatives would subscribe to most of these maxims. In various editions of my book The Conservative Mind I have listed certain canons of conservative thought—the list differing somewhat from edition to edition; in my anthology The Portable Conservative Reader I offer variations upon this theme. Now I present to you a summary of conservative assumptions differing somewhat from my canons in those two books of mine. In fine, the diversity of ways in which conservative views may find expression is itself proof that conservatism is no fixed ideology. What particular principles conservatives emphasize during any given time will vary with the circumstances and necessities of that era. The following ten articles of belief reflect the emphases of conservatives in America nowadays.

First, the conservative believes that there exists an enduring moral order. That order is made for man, and man is made for it: human nature is a constant, and moral truths are permanent.

This word order signifies harmony. There are two aspects or types of order: the inner order of the soul, and the outer order of the commonwealth. Twenty-five centuries ago, Plato taught this doctrine, but even the educated nowadays find it difficult to understand. The problem of order has been a principal concern of conservatives ever since conservative became a term of politics.

Our twentieth-century world has experienced the hideous consequences of the collapse of belief in a moral order. Like the atrocities and disasters of Greece in the fifth century before Christ, the ruin of great nations in our century shows us the pit into which fall societies that mistake clever self-interest, or ingenious social controls, for pleasing alternatives to an oldfangled moral order.

It has been said by liberal intellectuals that the conservative believes all social questions, at heart, to be questions of private morality. Properly understood, this statement is quite true. A society in which men and women are governed by belief in an enduring moral order, by a strong sense of right and wrong, by personal convictions about justice and honor, will be a good society—whatever political machinery it may utilize; while a society in which men and women are morally adrift, ignorant of norms, and intent chiefly upon gratification of appetites, will be a bad society—no matter how many people vote and no matter how liberal its formal constitution may be.

Second, the conservative adheres to custom, convention, and continuity. It is old custom that enables people to live together peaceably; the destroyers of custom demolish more than they know or desire. It is through convention—a word much abused in our time—that we contrive to avoid perpetual disputes about rights and duties: law at base is a body of conventions. Continuity is the means of linking generation to generation; it matters as much for society as it does for the individual; without it, life is meaningless. When successful revolutionaries have effaced old customs, derided old conventions, and broken the continuity of social institutions—why, presently they discover the necessity of establishing fresh customs, conventions, and continuity; but that process is painful and slow; and the new social order that eventually emerges may be much inferior to the old order that radicals overthrew in their zeal for the Earthly Paradise.

Conservatives are champions of custom, convention, and continuity because they prefer the devil they know to the devil they don’t know. Order and justice and freedom, they believe, are the artificial products of a long social experience, the result of centuries of trial and reflection and sacrifice. Thus the body social is a kind of spiritual corporation, comparable to the church; it may even be called a community of souls. Human society is no machine, to be treated mechanically. The continuity, the life-blood, of a society must not be interrupted. Burke’s reminder of the necessity for prudent change is in the mind of the conservative. But necessary change, conservatives argue, ought to he gradual and discriminatory, never unfixing old interests at once.

Third, conservatives believe in what may be called the principle of prescription. Conservatives sense that modern people are dwarfs on the shoulders of giants, able to see farther than their ancestors only because of the great stature of those who have preceded us in time. Therefore conservatives very often emphasize the importance of prescription—that is, of things established by immemorial usage, so that the mind of man runneth not to the contrary. There exist rights of which the chief sanction is their antiquity—including rights to property, often. Similarly, our morals are prescriptive in great part. Conservatives argue that we are unlikely, we moderns, to make any brave new discoveries in morals or politics or taste. It is perilous to weigh every passing issue on the basis of private judgment and private rationality. The individual is foolish, but the species is wise, Burke declared. In politics we do well to abide by precedent and precept and even prejudice, for the great mysterious incorporation of the human race has acquired a prescriptive wisdom far greater than any man’s petty private rationality.

Fourth, conservatives are guided by their principle of prudence. Burke agrees with Plato that in the statesman, prudence is chief among virtues. Any public measure ought to be judged by its probable long-run consequences, not merely by temporary advantage or popularity. Liberals and radicals, the conservative says, are imprudent: for they dash at their objectives without giving much heed to the risk of new abuses worse than the evils they hope to sweep away. As John Randolph of Roanoke put it, Providence moves slowly, but the devil always hurries. Human society being complex, remedies cannot be simple if they are to be efficacious. The conservative declares that he acts only after sufficient reflection, having weighed the consequences. Sudden and slashing reforms are as perilous as sudden and slashing surgery.

Fifth, conservatives pay attention to the principle of variety.They feel affection for the proliferating intricacy of long-established social institutions and modes of life, as distinguished from the narrowing uniformity and deadening egalitarianism of radical systems. For the preservation of a healthy diversity in any civilization, there must survive orders and classes, differences in material condition, and many sorts of inequality. The only true forms of equality are equality at the Last Judgment and equality before a just court of law; all other attempts at levelling must lead, at best, to social stagnation. Society requires honest and able leadership; and if natural and institutional differences are destroyed, presently some tyrant or host of squalid oligarchs will create new forms of inequality.

Sixth, conservatives are chastened by their principle of imperfectability. Human nature suffers irremediably from certain grave faults, the conservatives know. Man being imperfect, no perfect social order ever can be created. Because of human restlessness, mankind would grow rebellious under any utopian domination, and would break out once more in violent discontent—or else expire of boredom. To seek for utopia is to end in disaster, the conservative says: we are not made for perfect things. All that we reasonably can expect is a tolerably ordered, just, and free society, in which some evils, maladjustments, and suffering will continue to lurk. By proper attention to prudent reform, we may preserve and improve this tolerable order. But if the old institutional and moral safeguards of a nation are neglected, then the anarchic impulse in humankind breaks loose: “the ceremony of innocence is drowned.” The ideologues who promise the perfection of man and society have converted a great part of the twentieth-century world into a terrestrial hell.

Seventh, conservatives are persuaded that freedom and property are closely linked. Separate property from private possession, and Leviathan becomes master of all. Upon the foundation of private property, great civilizations are built. The more widespread is the possession of private property, the more stable and productive is a commonwealth. Economic levelling, conservatives maintain, is not economic progress. Getting and spending are not the chief aims of human existence; but a sound economic basis for the person, the family, and the commonwealth is much to be desired.

Sir Henry Maine, in his Village Communities, puts strongly the case for private property, as distinguished from communal property: “Nobody is at liberty to attack several property and to say at the same time that he values civilization. The history of the two cannot be disentangled.” For the institution of several property—that is, private property—has been a powerful instrument for teaching men and women responsibility, for providing motives to integrity, for supporting general culture, for raising mankind above the level of mere drudgery, for affording leisure to think and freedom to act. To be able to retain the fruits of one’s labor; to be able to see one’s work made permanent; to be able to bequeath one’s property to one’s posterity; to be able to rise from the natural condition of grinding poverty to the security of enduring accomplishment; to have something that is really one’s own—these are advantages difficult to deny. The conservative acknowledges that the possession of property fixes certain duties upon the possessor; he accepts those moral and legal obligations cheerfully.

Eighth, conservatives uphold voluntary community, quite as they oppose involuntary collectivism. Although Americans have been attached strongly to privacy and private rights, they also have been a people conspicuous for a successful spirit of community. In a genuine community, the decisions most directly affecting the lives of citizens are made locally and voluntarily. Some of these functions are carried out by local political bodies, others by private associations: so long as they are kept local, and are marked by the general agreement of those affected, they constitute healthy community. But when these functions pass by default or usurpation to centralized authority, then community is in serious danger. Whatever is beneficent and prudent in modern democracy is made possible through cooperative volition. If, then, in the name of an abstract Democracy, the functions of community are transferred to distant political direction—why, real government by the consent of the governed gives way to a standardizing process hostile to freedom and human dignity.

For a nation is no stronger than the numerous little communities of which it is composed. A central administration, or a corps of select managers and civil servants, however well intentioned and well trained, cannot confer justice and prosperity and tranquility upon a mass of men and women deprived of their old responsibilities. That experiment has been made before; and it has been disastrous. It is the performance of our duties in community that teaches us prudence and efficiency and charity.

Ninth, the conservative perceives the need for prudent restraints upon power and upon human passions. Politically speaking, power is the ability to do as one likes, regardless of the wills of one’s fellows. A state in which an individual or a small group are able to dominate the wills of their fellows without check is a despotism, whether it is called monarchical or aristocratic or democratic. When every person claims to be a power unto himself, then society falls into anarchy. Anarchy never lasts long, being intolerable for everyone, and contrary to the ineluctable fact that some persons are more strong and more clever than their neighbors. To anarchy there succeeds tyranny or oligarchy, in which power is monopolized by a very few.

The conservative endeavors to so limit and balance political power that anarchy or tyranny may not arise. In every age, nevertheless, men and women are tempted to overthrow the limitations upon power, for the sake of some fancied temporary advantage. It is characteristic of the radical that he thinks of power as a force for good—so long as the power falls into his hands. In the name of liberty, the French and Russian revolutionaries abolished the old restraints upon power; but power cannot be abolished; it always finds its way into someone’s hands. That power which the revolutionaries had thought oppressive in the hands of the old regime became many times as tyrannical in the hands of the radical new masters of the state.

Knowing human nature for a mixture of good and evil, the conservative does not put his trust in mere benevolence. Constitutional restrictions, political checks and balances, adequate enforcement of the laws, the old intricate web of restraints upon will and appetite—these the conservative approves as instruments of freedom and order. A just government maintains a healthy tension between the claims of authority and the claims of liberty.

Tenth, the thinking conservative understands that permanence and change must be recognized and reconciled in a vigorous society. The conservative is not opposed to social improvement, although he doubts whether there is any such force as a mystical Progress, with a Roman P, at work in the world. When a society is progressing in some respects, usually it is declining in other respects. The conservative knows that any healthy society is influenced by two forces, which Samuel Taylor Coleridge called its Permanence and its Progression. The Permanence of a society is formed by those enduring interests and convictions that gives us stability and continuity; without that Permanence, the fountains of the great deep are broken up, society slipping into anarchy. The Progression in a society is that spirit and that body of talents which urge us on to prudent reform and improvement; without that Progression, a people stagnate.

Therefore the intelligent conservative endeavors to reconcile the claims of Permanence and the claims of Progression. He thinks that the liberal and the radical, blind to the just claims of Permanence, would endanger the heritage bequeathed to us, in an endeavor to hurry us into some dubious Terrestrial Paradise. The conservative, in short, favors reasoned and temperate progress; he is opposed to the cult of Progress, whose votaries believe that everything new necessarily is superior to everything old.

Change is essential to the body social, the conservative reasons, just as it is essential to the human body. A body that has ceased to renew itself has begun to die. But if that body is to be vigorous, the change must occur in a regular manner, harmonizing with the form and nature of that body; otherwise change produces a monstrous growth, a cancer, which devours its host. The conservative takes care that nothing in a society should ever be wholly old, and that nothing should ever be wholly new. This is the means of the conservation of a nation, quite as it is the means of conservation of a living organism. Just how much change a society requires, and what sort of change, depend upon the circumstances of an age and a nation.

Such, then, are ten principles that have loomed large during the two centuries of modern conservative thought. Other principles of equal importance might have been discussed here: the conservative understanding of justice, for one, or the conservative view of education. But such subjects, time running on, I must leave to your private investigation.

The great line of demarcation in modern politics, Eric Voegelin used to point out, is not a division between liberals on one side and totalitarians on the other. No, on one side of that line are all those men and women who fancy that the temporal order is the only order, and that material needs are their only needs, and that they may do as they like with the human patrimony. On the other side of that line are all those people who recognize an enduring moral order in the universe, a constant human nature, and high duties toward the order spiritual and the order temporal.

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Peter Schiff Analogies

Posted by Orrin Woodward on June 25, 2009

Here are some great thoughts and analogies from Peter Schiff.  Mr. Schiff is a common sense thinker and a proponent of the Austrian School of Economics.  I believe the Austrian School is the clearest thinking and historically accurate school of economics in the world.  Ludwig Von Mises and Friedrich Von Hayek were original titans in an age of Keynesian copycats.  Enjoy the video and think through the analogies for yourself. Education is not an option! God Bless, Orrin Woodward

[youtube=http://www.youtube.com/watch?v=sr0zXsTcfwg&w=425&h=344]

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United States National Debt – A National Disgrace

Posted by Orrin Woodward on June 18, 2009

I watched this video the other day and shook my head in disbelief.  How is it possible that the best leaders in our country, that are elected to maintain our national freedoms, are allowing us to sink into the bondage of debt?  This is not a little issue, it is the difference between a free & prosperous America or police state.  When a country cannot pay its bills, it is no longer free and must do the bidding of its masters.  It takes personal discipline to live debt free and it takes national discipline to be debt free as a country.  The Founders of this great nation knew the evils of debt and eliminated our national debt.  Ernest Hemingway had a line in one of his books that asked how someone went broke.  The answer was, “Slowly at first and real fast at the end.”  This is America right now.  We have slowly been going into debt and now we are speeding towards bankruptcy. 

Recently, a two trillion dollar loan was given by the Federal Reserve.  Two trillion!  That loan is guaranteed by our tax dollars!  I am disgraced by the lack of discipline of our “leaders” in Washington.  If we do not do battle quickly with the bondage of debt, our children and grandchildren will do battle with the bondage of their masters.  This is not a joke and history has never shown a bankrupt nation that did not go through a revolution.  The sad state of our education leaves most people blind to the realities of our current situation.  Educate yourself through books like The 5000 Year Leap, The Creature from Jekyll Island, and The Coming Economic Earthquake.  There are many more, but that is a good start.  Debt matters and if anyone tells you that it doesn’t, then tell them to read the history of nations.  We can and must make a difference through education and leadership.  Watch the video and start studying!  God Bless, Orrin Woodward

[youtube=http://www.youtube.com/watch?v=O_TjBNjc9Bo]

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Free Enterprise and Greed

Posted by Orrin Woodward on April 10, 2009

I love this video of Phil Donahue interviewing Milton Friedman.  People bandy about corporate greed, entrepreneurial greed, and excess profits like they can tell the difference between greed, profits or excess profits.  It is hard enough to know your own motives, let alone assign motives to others.  Entrepreneurs risk their capital and their must be a reward or no one would do it.  To call profits greed is insane.  In a true free enterprise system, no one is forced to surrender their hard earned money to a business.  If Starbucks can sell $4 dollar coffees, who am I to say Starbucks is greedy?  Didn’t the customer willingly surrender their money for the coffee.  If it was freely given for the coffee; why would a third party, that wasn’t involved in the deal, have the audacity to call it greed?  If someone in a true free enterprise system is making a billion dollars, they must be satisfying the customers.  If not, the customers will leave and go elsewhere. 

It is time people start thinking again.  Labels and character attacks are a cheap way to get out of thinking.  In my opinion, we need less name calling and more thinking.  Hey, I have a great idea, why don’t we elect some government officials that can balance a budget and not just print money!  Just because we will be dead when the bill is due, doesn’t leave us without a moral responsibility to future generations.  I better watch it, someone might call me a name for thinking.  If we had a balanced budget amendment, wouldn’t the political leaders have to start making tough calls – like every family in the world has to make on finances.  No one has an unlimited budget, unless they are given the right to print paper money and own millions of acres of forest.  This is morally wrong and must be stopped.  Is anyone else concerned about the moral and fiscal responsibility gap between our elected officials and the hard working citizens? God Bless, Orrin Woodward

[youtube=http://www.youtube.com/watch?v=RWsx1X8PV_A&w=425&h=344]

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