The City of God or the City of This World: Which Christians are right about politics?

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Augustine writes about the city of this world in his preface to the City of God (Penguin ed., H. Bettenson, trans.):

Therefore I cannot refrain from speaking about the city of this world, a city which aims at dominion, which holds nations in enslavement, but is itself dominated by the lust of domination.

Andrew, who is a frequent contributor on these pages, wrote a post at The City of God in which he suggests that Christians could resolve their political differences if they focussed on their common dislike of crony capitalism:

As I’ve been listening to the positions and representatives of the progressives, conservatives, and libertarians, it occurs to me that they can all agree on certain social justice matters. They can agree on the rule of law in a true sense: where the law does not favour anyone due their financial status. And this principle has many applications. I believe all three positions can agree that crony capitalism, or welfare for the rich, is not just. Conservatives and libertarians (in our context) are both supposed to be free-market, which opposes welfare as a general rule, and progressives oppose welfare for the rich in specific; why then, cannot all three wings of the church agree to co-operate in opposing this?

I really wonder, too, if focusing on just bringing our political order into accord with this one principle, in all its many applications, would not drastically improve the plight of the poor, more than any other political principle. This is something that could be challenged, but I have a feeling that it might be the single most important issue in terms of helping the poor, considered in its widest significance.

My first response to Andrew was that the problem today isn’t just crony capitalism which has become very bad lately, but then socialism exists in the form of handouts of all kinds, to the point that governments are even borrowing money to give to the poor. The end result will be a meltdown of the economy, and then reality sets in and shows that socialism can’t work.

But then I wrote a second response, which I repost here in full:

I would also like to point out that a large part of the difference between libertarians on the right and statists on the left is their understanding of the role of government. Libertarians truly desire smaller government because they rightly see government as a usurper of rights while its true role should be to protect rights. So I would wish above all to downsize government to the point where it serves the function of protector and nothing else.

The statists, on the other hand, view government as a panacea, the solution to all the woes of humanity, whether poverty, sickness, inequality or ignorance. In their quest to create the kingdom of heaven through government they enlarge the government to the point where it becomes the biggest threat to freedom–and this includes Christian freedom, because historically governments have largely failed to protect Christians but have instead murdered them by millions. This emphasis on state as panacea is fundamentally opposed to the Christian world-view that  God’s intervention only can accomplish the Kingdom of Heaven–it is not something which sinful men who rebel against God can bring about–it is likewise impossible even for kind-hearted Christians with good intentions to bring about the Kingdom of Heaven through political means, because it requires a change in hearts of all men, a change that is only possible through the power of the Holy Spirit.

I have experienced personally the threat of big government–having been threatened with imprisonment and fines only because I am unwilling to relinquish my rights which are guaranteed by law–but who am I to challenge the evil and raw power of a rogue state which no longer protects but usurps rights? So I have quietly withdrawn from the battle, but I have only loathing for the state.

Thus, in my opinion, it is a mistake for Christians, who see government as the solution, to believe that good policy can somehow transform the Kingdom of this world into the Kingdom of God.  Augustine would say that that attempt is futile, for the city of this world aims at domination, which results intrinsically, as I suggested, in the curtailing of human freedom.  Thus, as a Christian libertarian, I desire the state to content itself with the protection of rights and to stay out of the business of making heaven on earth.

Thank-you Ben “gold-is-not-money” Bernanke: Celebrating $1600 gold

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In this video (towards end), Ron Paul asks that colossus of economic brilliance, Chairman Ben Bernanke, if gold is money and he answer with a flat “no”.  Even though it has been money for “6000 years” according to Ron Paul, Bernanke says that the only reason central banks hold this asset is “tradition”.

I have to thank Ben Bernanke for his ignorance about gold.  He is the main reason that it is now selling at $1600 per ounce and this is a great boon to my portfolio.  He is the one who is responsible for adding nearly 2 trillion dollars to the adjusted money supply in less than three years; he has also ripped off retirees and other creditors by keeping interest rates at near zero.  I don’t suppose Chairman Bernanke could possibly admit that the following two charts have any relationship.

Adjusted money base 18 July 2011: source St. Louis Federal Reserve

10 year gold chart: source Kitco.com

It is important to add that although QE2 officially ended at the end of June, there is good reason to think that QE continues.  I.e., there is no need for an announcement, QE3 started where QE2 left off, as the adjusted money supply has not leveled off but continues to expand.  And it must do so, as the United States government must roll over nearly 1/2 trillion dollars of expiring treasury debt by the end of August.  Monty Pelerin, in a must read article, writes:

From Zerohedge is this table of Treasury securities that mature in August:

The US government must fund both its deficits plus the maturing debt. In August that amounts to  $600 billion. Can this be done month after month? Not indefinitely! Annualized, the US government must sell new and rollover debt of about $7 trillion this year. Next year the amount will be larger.

The death debt spiral is coming to a head.  The next couple of months are going to be interesting.

My investment summary:

Long:  Canadian intermediate and junior oil and gas sector, gold mining, physical gold and silver (via Sprott Physical Gold and Silver Trusts).

Short:  US dollar

Also in this series:

April 20, 2011 Stuck on stupid: celebrating $1500 gold and the East Coast geniuses that made it possible

September 24, 2010 The education bubble IV: In celebration of $1300 gold

The New Berlin Wall IV: A reader’s comment

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The United States government is acting like a trapped animal in a desperate attempt to keep capital in the United States.  The New Berlin Wall consists of the various laws, many of them recent, which attempt to force American citizens and companies to keep their capital in the United States.  But instead of having success, these laws will cause many to leave permanently, with no intention of ever returning.  It will eventually result in a mass exodus if the U.S. doesn’t begin to implement measures that tries to entice capital to stay rather than measures that try to stop it from leaving.  The exodus of capital is already occurring.

A reader responded to my first New Berlin Wall with the following comment, which I edited to protect her and myself from a rapacious evil government (I’ve changed the identity of her country to X and omitted her name):

I am in the exact same situation as you. I have lived in X for thirty years. I have been told by the IRS when I call as I have been a stay at home mom of a disable X-IAN child that I did not have to file since I did make enough to file but, that I might want to fine and use my husband *who claims me as a dependent** income, he is X-IAN. I do not have to file her as “American for tax purposes” but, was told I could. Why would I want to do that?

My health is not good and this is such a royal pain. It is exceedingly confusing. This year I inherited some money when my mother passed away. I will of course report it but, it’s right in the middle of this U.S. tax change for citizens residing in other countries.  …

Why should people of lower middle income be subjected to this after living outside the country for so long. I no longer have any desire to be American because of these draconian practices. It puts such hardship on law abiding citizens. I want to renounce. The stress of it all is too much. I am only worried about being able to visit my family in the U.S. occasionally but, have no desire what so ever to EVER live there again.

Shame on you United States for this monetary slavery. We are not rich and my husbands income supports me *I have lupus and RA* AND my son with disabilities. Now you want me to feel like I’m a servant to you though I’ve done nothing wrong. This puts such a hardship on people.

I have already applied for my X-ian citizenship, I want to renounce American citizenship and not be penalized for traveling on my X-IAN passport. Thirty years of not living in the U.S. and we still have to contend with this ridiculousness.

Of course now that I will be travelling on Canadian passport, I can still visit the US but I can’t reside there any more.  But expatriation and the relinquishing of my US citizenship is what I had to do to avoid the stupid and draconian legislation against Americans who live outside the country.  The government is attempting to stop millionaires from expatriating their capital and is instead making life hell for stay-at-home mothers.  Shame on you indeed.

The New Berlin Wall series

TD Canada Trust: The Gay Bank II

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Almost a year ago, I expressed my disapproval of the TD Canada Trust’s sponsorship of the gay lifestyle, and I sold my shares of the stock, but maintained a banking relationship with them based on my understanding of 1 Cor 5.9-13.  I have now, however, moved my personal accounts elsewhere because the branch manager could not guarantee that my banking information would be safe from the intrusion of a certain foreign state (which will remain nameless to protect the innocent–me).

To my surprise, this first Gay Bank post has become my all-time most popular.  So I did a google search and learned why that is.  The Toronto Gay Pride parade has become an outlet for anti-Israeli protests.  The organizers are in trouble now.  The city of Toronto is threatening to withdraw its funding of the parade because it has become political.  And apparently some are organizing protests against TD Canada Trust because of its continued sponsorship of gay pride events.  Well, it’s not as if I didn’t warn them.  I consider it unwise indeed to promote such a visible sponsorship of such a contentious event in order to potentially gain a few clients while the sponsorship has the potential of alienating many millions of customers.

Consider the following videos:

At 0:58 seconds in this second video, you will also see a placard with the words “F— the Police & F— Capitalism”.  I wonder how that makes the millions of investors feel, those who invest using TD Bank and TD Waterhouse, that TD Bank is sponsoring an anti-Police, anti-Israeli and anti-capitalism parade?

New Berlin Wall III: No renewal of passport until IRS satisfied?

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The U.S. Government Accountability Office has recommended withholding passports from people who have unpaid tax bills owing to the IRS.

That’s a really good idea.  Now I have another.  Let’s build a really high wall at all of the land borders and post guards with machine guns to keep Americans who owe taxes from leaving the country.