Big Head Press

L. Neil Smith's
Number 627, July 10, 2011

"The US Constitution is a Trojan Horse"

Previous Previous Table of Contents Contents Next Next

University Rationale Revisited
by Jim Davidson

Bookmark and Share

Special to L. Neil Smith's The Libertarian Enterprise

Since 1999 when the price of gold reached a secular low at $252 and change, the stock market has been in decline in real terms. In the years since then, I've made a considerable fortune for myself and others.

Priced in gold
The Dow industrials priced in ounces of gold.

Since 2007 and the sub-prime mortgage crisis, it has been evident that the economy as a whole is not only not growing, but crashing dramatically. We've seen the Dow in artificially inflated dollars decline to 6627 on 6 March 2009. While the Dow has recovered in nominal dollar terms, it continues to remain substantially below ten ounces of gold in value. So in real terms, with 8.25 ounces of gold buying today's Dow, the mainstream economy is a mess.

We see that all around us. Our friends are out of work. The fools in government have flooded vast regions of the Missouri and Mississippi river valleys to create temporary jobs, presumably in an effort to replace the temporary jobs that disappeared after the census was over in 2010. The rat bastard in charge, Obama, has betrayed his promise and 2009 policy not to prosecute medical marijuana, so he can assist the prison industry by putting millions of Americans in prison every year. Still. But no amount of fallacious breaking of windows is going to create real wealth.

The Federal Reserve system continues to issue money, as though it were going out of business. A quick check of the St. Louis Fed site shows three major quantitative "easings" since 2009. This chart: (at [this link] reveals the monetary base being increased dramatically from about 800 billion dollars to 1.6 trillion to 2 trillion, and very recently to well over 2.6 trillion. And with every increase in the monetary base, the government debt has increased, the number of people in shelters and on food stamps has increased, the economy continues to spiral down the drain.

In July 2009, I decided to do something about it. It became obvious that people would need to dramatically change what they knew in order to be effective in the world economy of tomorrow. It became obvious that people needed new knowledge to avoid unnecessary contributions to government, to avoid being impoverished by circumstances, to communicate privately, to make use of the innovations my programmer friends and I have made in free market money, to be effective at avoiding government parasites, thugs, and bullies. My solution was to found a new university without involving the state in any way.

Why is a university effective? For one thing, it provides immediate opportunities for people who have useful skills to teach other people about those skills. It is an immediate source of jobs. Second, it is an immediate source of learning for people who need new skills in order to have new jobs. Third, it is an opportunity for companies and individuals that need to hire skilled workers to arrange to have them trained quickly and at minimum cost in funds and paperwork. Fourth, and possibly most important of all, a university is different from a college in that it conducts research. Research is essential, because there is so much we don't know.

The last time a world currency went away was in AD 1453 when Constantinople was sacked. Before that, the Islamic dinar and dirham went away, to most intents and purposes, with the fall of the Caliphate in AD 1258 when the Mongols sacked Baghdad. (No, the Crusaders never got anywhere near Baghdad. And, yes, every Western European owes an enormous debt of gratitude to Islam for blunting the advance of the Mongols. When Baghdad was sacked, the Mongols dumped the entire libraries of the House of Wisdom in the Tigris and Euphrates rivers. The waters ran black with the water soluble ink for six months. Be grateful your culture's knowledge wasn't wiped out the same way.)

We simply don't know what to expect from the crash of the dollar. We don't know what to expect from the rise of the Second Realm and alternative currency systems. We have some clues from past hyperinflations. We have some clues from books like Andrew Dickson White on Fiat Money Inflation in France. We have some clues from Hayek on "The Denationalisation of Currency." But we really don't know what to expect, in detail.

There are techniques and technologies to develop. Research will help in these areas. We've started a university press to publish monographs and books, to share our knowledge.

It would help me if you would visit our site at and contribute. Contribute your time by teaching classes, and get paid for your time by setting your own prices. Contribute money to our ChipIn, or through our Google Checkout system. Write a book or a monograph for publication by our team. Come to one of our upcoming events in Montana, Indiana, Florida, or elsewhere. Help us plan future events in Austin, Richmond, Philadelphia, and Nevada.

One further thought on the big picture: there are about 44.5 million Americans on food stamps according to a Wall Street Urinal article from this week. When the government is unable to pay for their food, how would those people eat? Individual Sovereign University teaches courses in how to grow food, how to cultivate plants inside or outdoors, and on related topics. If the government doesn't crash, every bag of groceries you grow or raise yourself is that much less sales tax you pay into the system.

The economy is not going to fix itself. If you want to survive in the coming dark times, get involved. Get involved in your community, in your garden, and in your head. Learn new skills. Teach others.

Please spread the word. The life you save may be your own.

Jim Davidson is an author, entrepreneur, and anti-war activist. His 1990 venture to offer a sweepstakes trip into space was destroyed by government action as was his free port and prospective space port in Somalia in 2001. His 2002-2007 venture in free market money and private stock exchange was destroyed by government action in 2007. He's going to Mars if he has to walk. His second book, Being Sovereign is now availble from Lulu and Amazon. He is currently working on a book about travel to Mars with John Wayne Smith, a book with international fugitive Chad Z. Hower on his story, a book on sovereign self-defence, and a book compiling his letters and essays in "The Libertarian Enterprise" from 1995 to 2010. Contact him at or Come visit IndSovU teams at gatherings in June 2011 in New Hampshire, September 2011 in Montana, December 2011 in Florida, and March 2012 in Austin, Texas.

Was this worth reading?
Then why not:


Individual Sovereign University
Individual Sovereign University

At go to the "store" menu item in the top horizontal menu. Find
"services." Read the first two pages. When you get to the third page, you
should find a Google checkout list of items. Use coupon code HOLK001
for a discount on the prices shown.

Help Support TLE by patronizing our advertisers and affiliates.
We cheerfully accept donations!

Big Head Press