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Page added on May 1, 2014
When Nations Go Broke: Mob Justice
It was a scene just like out of the Wild West.
18-year-old David Moreyra had stolen a purse. And an angry mob gathered in broad daylight in Rosario, Argentina to lynch him.
It turns out that ‘mob justice’ is on the rise in Argentina, and Mr. Moreyra’s death was just one of more than a dozen recent instances.
Hundreds of years ago during the Age of Enlightenment, liberty-minded philosophers argued that governments could only derive their authority to govern by receiving consent of the governed.
And that the people would have to voluntarily surrender some of their freedoms to government in exchange for certain services (and protection of their other freedoms).
This idea has become twisted and mutated over time.
These days, the prevailing model is that [some] people pay taxes, and in exchange the government maintains a monopoly over a number of public services.
Security is one obvious example since, for most people, the local police force maintains a monopoly over citizen security.
Any high school economics student can tell you that most monopolies are terribly inefficient.
Yet this is what people have been indoctrinated to believe—that they need the government to protect them. And they’re willing to pay ever-increasing taxes to ensure the government can provide it.
In many cities and countries across the world, they’re even willing to give up their right to bear arms… to give up some personal freedom… in exchange for the government providing a generally inefficient service.
All of this is part of the modern social contract. And when nations go broke, this social contract breaks down.
Many of the public services that government has promised get curtailed, or cut entirely.
The people have held up their end of the bargain. They’ve traded in their freedoms and their income in exchange for services. But the government hasn’t held up theirs.
And because the government has a monopoly on many of these services, suddenly people find themselves without something they have come to depend on.
This is precisely what has happened in Argentina. As the economy continues to struggle from an absurd level of money printing, unemployment and inflation are both painfully high.
Many Argentines are desperate. Crime rates have soared. But the police are utterly worthless.
Once peaceful citizens have been driven to desperation as a result. They’re afraid… and they’re taking matters into their own hands, roaming the streets in lynch gangs.
This isn’t some neighborhood watch or citizen justice program.
They form these gangs out of desperation, signalling that Argentina’s social contract has completely disintegrated.
It’s a rather unfortunate regression for a society. Civilized people don’t form angry mobs to act as judge, jury, and executioner.
As I’ve long-written, there are consequences to destructive economic policy.
Central bankers cannot conjure infinite quantities of currency out of thin air, nor can politicians borrow more money just to pay interest on what they’ve already borrowed, all without consequence.
This is one of those consequences—a complete breakdown of the social contract, giving rise to something so Medieval as lynch gangs and mob justice.
Can it happen where you live? Maybe. No nation is immune to the social effects of economic decay (think Detroit, or even New Orleans after Hurricane Katrina…).
When every shred of data suggests that major western economies are decaying rapidly under the weight of excessive debt and paper currency, it’s foolish to presume that ‘it can’t happen here’.
9 Comments on "When Nations Go Broke: Mob Justice"
Makati1 on Thu, 1st May 2014 8:07 pm
The word “America” can be inserted in place of Argentina in this article without stretching the facts much. The days to come will see even more 3rd world realities on the streets and lanes of America as the social fabric shreds.
Davey on Thu, 1st May 2014 8:23 pm
The quiet of the last hundred years, except in times of war, will quickly give way to street justice in a decent. This may be a limited phenomenon in duration following a break to lower level of economic activity. With a reboot some kind of stable order will resume let us hope. I see the worst affected areas those in the worst overshoot. The global system is favoring urbanization. These are precisely the areas least prepared for a lack of law and order. Large populations lacking support will be volitile and dangerous at minimum. Any area is at risk but it is clear certain areas will be let loose by TPTB in battlefield triage. The urban areas in power centers may take what they need to secure the population so rural areas in the vicinity may be at risk. War lords and militias are a possibility along with our often quoted “Mad “Max”. I do not see much optimism for this initial period. This is why i recommend a short term life boat for risk management purposes. If you can lay low all the better. If you can focus on a few necessities instead of everything all the better. Get ready for some reality TV in your area within a few years. May luck be with you!
GregT on Thu, 1st May 2014 10:56 pm
Anyone that hasn’t already done so, I would highly recommend watching the following documentary.
http://www.youtube.com/watch?v=Zsqa-YHE36A
Think Argentina won’t happen where you live? Think again.
FriedrichKling on Fri, 2nd May 2014 4:24 am
Makati-
You are a worn and tired machine. Why not copy and print for all of your comments.
You maintain a pathological hatred for the US, and a desperate desire to convince yourself and others that you made the right decision by moving to the developing world.
Makati1 on Fri, 2nd May 2014 5:22 am
GregT, some on here don’t want to be reminded of the failing US terrorist organization in DC. Why not. They suck up the MSM propaganda about the current ‘bad’ guy’ like Iran, Libya, Iraq, Afghanistan, China, now Russia, etc. What goes around comes around. I intend to continue to point out the US’ failures at every opportunity. Maybe they think their rants are different? LOL.
Makati1 on Fri, 2nd May 2014 5:25 am
FYI in case you missed it:
“…The Pentagon has no “great solution” to reduce its dependence on a Russian-made engine that powers the rocket used to launch U.S. military satellites, the Defense Department’s top weapons buyer said…”
http://www.zerohedge.com/news/2014-05-01/pentagon-admits-no-solution-replace-russian-rockets-launch-us-military-satellites
LMAO!!! ^_^ And we need them to take our astronauts to the space station.
Davy, Hermann, MO on Fri, 2nd May 2014 6:42 am
Friedrich said – Makati, You are a worn and tired machine. Why not copy and print for all of your comments.
Friedrich, he does in his mind. MAK, can only rationalize in relation to propaganda so he uses worn out phrases and linear anti-US thinking.
Further Mak distortions:
Mak, is being hypocritical with his zerohedge comment because he has mentioned in the past zerohedge is a part of the US MSM propaganda machine of lies and deception. According to Makie you are not to read zerohedge or you will be deceived. Yet, Mak uses zerohedge articles when the articles are pro-China or pro-Russia for his propaganda purposes.
Mak sure the Pentagon is discovering the problems of an interconnected world so will Russia and China in their quest for advantages through conflict and economic weapons. The whole global system is heading for a decent sooner than latter through its pursuit of the great game of political brinkmanship and ideological advantage. If we were more civilized as a global world the brick wall would be energy. Instead the brick wall will be geopolitical conflict and an unfair financial house of cards much sooner. This geopolitical conflicts will complicate and acerbate the mitigation of global energy issues. But I guess politics have always been societies weak link.
HARM on Fri, 2nd May 2014 3:58 pm
“In many cities and countries across the world, they’re even willing to give up their right to bear arms… to give up some personal freedom… in exchange for the government providing a generally inefficient service.”
I’ll be the first to admit that the police cannot be everywhere and it’s a good idea to have a personal firearm or two, especially in rural areas. Even so, this stuff is just NRA agitprop.
The U.S. has BY FAR the most liberalized gun laws on the planet. You can even carry guns into national and state parks here, for chrissakes! In Georgia, they just legalized carrying concealed firearms into SCHOOLS, BARS and CHURCHES. Exactly how is that “Gestapo-like” as the hysterical right claims?
All of this is part of the modern social contract. And when nations go broke, this social contract breaks down.
HARM on Fri, 2nd May 2014 4:02 pm
“Many of the public services that government has promised get curtailed, or cut entirely.
The people have held up their end of the bargain. They’ve traded in their freedoms and their income in exchange for services. But the government hasn’t held up theirs.”
Please let me know when all the Red State “takers” who are currently receiving $billions more in S.S. Medicare and other benefits than they pay in taxes get “cut off” from the government teat. Meanwhile, they continue to bitch and moan about all the other “takers” (not themselves of course), which is their privilege for having been born Americans.
Sometimes the anti-U.S. hystrionics here gets too much, even for the environmentally inclined and P.O. aware.