Young Americans For Liberty

Issue II | May 2010
“When you want to fool the world, tell the truth.”
YALIBERTY.ORG/FPH
The War on Terror and Sun Tzu:
Why Conservatives Is American Strategy Sound?
Should Hate Our Craig Dixon
Foreign Policy
Wesley Messamore
Law or Hoax? Disproving

Democratic Peace Theory
Roy Antoun
The European Union:

Eurocrats and the Eurosphere The Next Threat to American
Elliot Engstrom Sovereignty: China
Marissa Yturralde-Giannotta
YOUNG AMERICANS for LIBERTY

The Young Americans for Liberty’s
Foreign Policy
Handbook
May 2010
FEATURED | Young Americans for Liberty | The Foreign Policy Handbook | Issue II | May 2010
The War on Terror and Sun Tzu:

Is American Strategy Sound?
Craig Dixon
―The problem, is that, America no longer seeks
to end conflicts. America is attempting to build
nations; America has protracted campaigns
that are dulling the morale of both Middle-
Eastern citizens, and our own citizens... and
giving our enemies tangible weaknesses to ex-
ploit.‖
CONTINUED P. 5
Why Conservatives
Should
Hate
Our Foreign Policy
Wesley Messamore
READ MORE P. 10
Law or Hoax?
Disproving
Democratic Peace Theory
Roy Antoun
READ MORE P. 13
Contents Executive Director
Jeff Frazee
3 Why Does NATO Still Exist?

By Jeremy Davis
Editor in Chief
5 The War on Terror and Sun Tzu: Is American Strategy Sound? Roy Antoun
By Craig Dixon
7 The European Union: Eurocrats and the Eurosphere

By Elliot Engstrom Contributors
9 The Next Threat to American Sovereignty: China Wesley Messamore

By Marissa Yturralde-Giannotta
Nelson Chase
10 Why Conservatives Should Hate Our Foreign Policy
By Wesley Messamore Jeremy Davis
12 Who Controls Our Foreign Policy?
By Brandon DeMeo Daniel Suraci
13 Law or Hoax? Disproving Democratic Peace Theory Brandon DeMeo

By Roy Antoun
Craig Dixon
16 Explanations for Continued Terrorism: Globalization and Lack of Democracy
By Marissa Yturralde-Giannotta Elliot Engstrom
19 Epic Fail: How International Financial Institutions Are the Causes of World Problems
Marissa Yturralde-Giannotta
By Daniel Suraci
YAL MISSION STATEMENT

The mission of Young Americans for Liberty (YAL) is to train, educate, and mobilize youth activists committed to
"winning on principle." Our goal is to cast the leaders of tomorrow and reclaim the policies, candidates, and direction
of our government.
YAL STATEMENT OF PRINCIPLES

We are the Young Americans for Liberty (YAL). As Americans we recognize the God-given natural rights of life, liberty,
and property set forth by our Founding Fathers. Our country was created to protect the freedoms of the individual
and directed by we the people.
We recognize that freedom deserves responsibility and therefore we hold ourselves to a high moral character and con-
duct. Integrity emphasizes our stance towards action. Principle defines our outlook towards government. Peace and
prosperity drives our ambitions towards our countrymen.
We inherit a corrupt, coercive world that has lost respect for voluntary action. Our government has failed and
dragged our country into moral decay. The political class dominates the agenda with a violent, callous, controlling
grip. And, for this we do not stand.
Young Americans for Liberty | http://www.yaliberty.org | May 2010 1 roy.antoun@yaliberty.org | P.O. Box 2751 Arlington, VA 22202
Letter From the Editor
Dear Reader,
As the Realist theory on foreign policy evolved
through history and the emergence of International Institutions
posed a challenge to international individualism, the Neo-
Realist theory was born. Not to be confused with neoconserva-
tism, Neo-Realism is competent international relations theory,
not a misunderstanding of history applied to foreign policy. Ken
Waltz, known as the godfather of Neo-Realism, acknowledges
that international institutions exist; however, states join them
only for self interest, not because they believe collective action
works; and those that do believe that the collective is in any
fashion effective, normatively see defeat or failure in the near
future.
Collective action and international institutions have

been attempted for centuries. One can argue that standards such as the Napoleonic Code
were primitive forms of international institutions; it was a contest of legitimacy to unite several
European nation-states together under one common law. Not only did it fail, but it set a
precedent for future international institutions. The Napoleonic Code of the early 19th century
angered several European societies that truly believed in their own state sovereignty. .
The League of Nations’ utter failure after the First World War proved yet again the
irregularities of collectivism. The rule of a few to dictate the policies of many gave us Benito
Mussolini and, lest we forget, Adolph Hitler. States will forever operate within the framework
of their defined borders. They operate to ensure themselves power and security, even if it
comes at the expense of others. As Machiavelli warned, those states that are too generous
often empower those around them while weakening themselves. And that is precisely why
collective action and international institutions inevitably fail.
As of the past two decades, the United Nations and its numerous sanction-induced
capabilities have angered government that propped up Saddam Hussein and Mahmoud
Ahmadinejad. The United Nations was used as a laughable venue for war when the U.S. in-
vaded Iraq. And although the U.N. has wonderful humanitarian intentions, its legitimacy as a
tool to prevent war is comparable to that of a white flag with angry words written on it.
Roy M. Antoun
“Of the Youth, by the Youth, for the Youth” Want to write for the
Foreign Policy Handbook?
The objective of the Foreign Policy Handbook is to rationally discuss the faults in American Contact roy.antoun@yaliberty.org
foreign policy and offer practical, liberty-minded solutions. Over the past century, our elected
http://www.yaliberty.org/FPH
leaders have collectively corrupted U.S. foreign relations into a hotbed of backfiring interven-
tionism. It is the job of the youth to mobilize and inform, because it is we who will be paying
Find us on the web:
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Commentary | Young Americans for Liberty | The Foreign Policy Handbook | Issue II | May 2010
threat to any of its members constitutes a general
Photo courtesy of NATO

response. The organization describes its current
mission in that: ―As the nature of threats changes,
so must the methods of preserving peace. NATO is
reorienting its defense capabilities toward today’s
threats. It is adapting its forces and developing new,
multinational approaches to deal with terrorism,
failed states and other security threats such as
weapons of mass destruction.‖
And while most scholars in the field of inter-
Why Does NATO Still Exist? national relations could not perceive a world with-
out NATO’s involvement, many ardent critics of
When it was ratified on April 9, 1949 in NATO’s mere existence have been questioning the
Washington D.C., the North Atlantic Treaty brought very purpose of the organization, both then and
into effect one of the largest mili- now, and the consequences it brings. Senator
tary alliance among nations in his- Jeremy Davis Robert A. Taft, an old right Republican, was a suspi-
tory. NATO’s purpose from the start was to sway the cious critic of NATO and thought that a post WWII
balance of power in favor of one of the two super- military alliance with European nations was a threat
powers at the time, the United States, in contrast to to the security of the United States. As one of the
the other world superpower, the Soviet Union. Lord few voices of the day challenging imperialism and
Ismay, NATO’s first Secretary internationalism, Robert Taft
General once said that the organi- “And linking ourselves to the wasn’t comfortable in dedicating
zation’s primary goals were ―to quarrels of Europe is exactly American soldiers to the affairs of
keep the Russians out, the Ameri- European conflicts and felt that
what we have done.” the build up of a large interna-
cans in, and the Germans down.‖
NATO has since been proved a Cold War relic tional army would be a cause of
that should have seen its demise with the fall of the war with the Soviet Union rather than a deterrent.
Soviet Union in 1991. Unfortunately, just as other He believed that an alliance such as NATO
governmental bureaucracies linger long after their would serve as an unnecessary means of provoking
stated usefulness, so too did NATO overstay its wel- the Soviets into war and thusly voted against its
come. ratification in the U.S. Senate.
Today, NATO remains nearly two decades Our involvement in such international or-
after the decline of its stated adversaries in the ganizations and alliances like NATO have led to fuel
members of the Warsaw pact and the Soviet Em- the perpetual imperialistic machine that has become
pire. In the time since the soviet downfall, NATO our foreign policy; a foreign policy in which was
has constantly been trying to redefine its mission in warned against by many of our republic’s founders.
order to justify its continual existence – mission In his farewell address, outgoing president George
creep. Washington famously concluded that ―The great
Without the threat of a Soviet Russian attack rule of conduct for us in regard to foreign nations is
long dead, NATO has now reestablished its mission in extending our commercial relations, to have with
in such broad terms that almost any perceived them as little political connection as possible.‖ He
also went on to state that ―It is our true policy to
steer clear of permanent alliances with any portion It survives because the military industrial
of the foreign world; so far, I mean, as we are now at complex that President Eisenhower warned Ameri-
liberty to do it; for let me not be understood as ca- cans of calls for it; and expanding NATO provides
pable of patronizing infidelity to existing engage- the breathing room it needs to flourish.
ments.‖ Thomas Jefferson reflected a similar belief Today, NATO represents nothing more than
in his support for a non-interventionist foreign pol- an outdated, wasteful, imperialistic organization
icy when he said "I am for free commerce with all driven by a lust for military domination and re-
nations, political connection with none, and little or mains a full fledged danger to American liberty.
no diplomatic establishment. And I am not for link-
ing ourselves by new treaties with the quarrels of Did You Know?
Europe, entering that field of slaughter to preserve A report on Sunday, February 21 revealed that a NATO air-
strike killed 27 civilians in one of the worst charades of non-
their balance, or joining in the confederacy of Kings combatant deaths in Afghanistan.
to war against the principles of liberty."
And linking ourselves to the quarrels of
Photo courtesy of NATO

Europe is exactly what we have done.
Supporters of NATO and those who would
justify its continued existence or the further involve-
ment of the United States would be quick to brush
aside the wisdom of Washington and Jefferson.
More modern opponents to NATO such as
Congressman Ron Paul defend the vision of the
founder’s foreign policy and the dedication to re-
fraining ourselves from entering entangling alli-
ances. In opposing NATO’s involvement in Yugosla-
via and Kosovo in the 1990’s, Paul stated that
FEATURED
―Without the Soviet enemy to justify the European
military machine, NATO had to find enemies and This Month
humanitarian missions to justify its existence. The The War on Terror and Sun Tzu: Is American Strategy Sound?
centuries-old ethnic hatreds found in Yugoslavia By Craig Dixon
and the militant leaders on all sides have served this
purpose well.‖ NATO exists because the U.S. allows Why Conservatives Should Hate Our Foreign Policy
By Wesley Messamore
it to exist. It burdens our foreign policy both diplo-
matically and economically as it selectively pro- Law or Hoax? Disproving Democratic Peace Theory
By Roy Antoun
motes nation-building schemes that drain the budg-
ets of member nations.
Despite all the philosophical, moral, and Last Month’s Issue
practical justifications for why NATO should cease
How to Solve the Middle East Problem
to exist, NATO survives today because those inter- Roy Antoun
ested in maintaining it seek its benefits through im-
Obama’s Nuclear Policy is Just More Hyped Up “Change”
perialism and feeding corporatist needs through ex- Wesley Messamore
pansion in arm sales to newly added members of the
organization.
Point/ Counterpoint | Young Americans for Liberty | The Foreign Policy Handbook | Issue II | May 2010
cal factions, both 'left' and 'right', that libertarians
Photo courtesy of The Washington Post

are too soft on war; it is said that libertarians fail to
understand the necessary-evil of using military
force to diffuse threats to liberty and safety. It must
escape both political camps that libertarian rebels
birthed the United States of America from the fires
of war against the British Empire.
Few Americans, libertarians included, will
disagree that when there is clear and present danger
to the security of American citizens, it is the role of
the United States military to engage and diffuse
The War on Terror and Sun Tzu: those threats. However, libertarians also believe
Is American Strategy Sound? that these engagements should be quick, hard, and
decisive... and then they should end.
The problem, is that, America no longer
"Again, if the campaign is protracted, the resources seeks to end conflicts. America is attempting to
of the State will not be equal to the strain. Now, build nations; America has protracted campaigns
when your weapons are dulled, that are dulling the morale of both Middle-Eastern
your ardour damped, your Craig Dixon citizens, and our own citizens... and giving our ene-
strength exhausted and your treasure spent, other mies tangible weaknesses to exploit.
chieftains will spring up to take advantage of your The foreign policy of today is the one George
extremity. Then no man, however wise, will be able W. Bush spoke out against when running for the of-
to avert the consequences that must ensue." fice of President (before pulling a 180 in practice of
-Sun Tzu, The Art of War, 6th Century B.C. office); "I think one way for us to end up viewed as
America's 'War on Terror' began in 2001 in the ugly American is to go around the world saying
the aftermath of the September 11th attacks. In 'we do it this way, so should you'." One can also look
2003 the war expanded into Iraq. Nine years later, at Senator John McCain's opposition to nation
conventional U.S. forces remain in both countries, building in Somalia, which is in direct contradiction
with the blood-soaked conflict now spilling over the to his advocation of long-term presence in the Mid-
borders into Pakistan. Anti-American sentiment in dle-East; "For us to get into nation-building and
the Middle-East continues to grow, with emerging [securing] law and order, I think is a tragic and ter-
threats in other nations beginning to manifest. No rible mistake."
bastions of liberty have taken hold in the region, A mistake indeed. Since invasion of these
and the institution of democracy remains precari- Middle-Eastern countries, the world has witnessed
ous. the rise of popular extremist clerics like Sayyid Mu-
This is the world America finds herself in to- qtada al-Sadr, a resurgent Taliban and Al-Qaeda,
day, a world in which the threat of Islamofascism domestic acts of terror like the incident at Fort
remains... and is growing. The question to ask is Hood, and growing Anti-American sentiment
whether or not direct intervention (different from around the world.
surgical military engagement) by U.S. forces is fuel- According to Sun Tzu, it is strategically un-
ing those flames. sound to have our conventional military forces en-
Often, sentiment is expressed by other politi- gaged in the long-term affairs of other nations.
Point/ Counterpoint | Young Americans for Liberty | The Foreign Policy Handbook | Issue II | May 2010
Given the failure of every contemporary attempt would be wise to begin taking into account the po-
thus far, the above quotations have been affirmed litical, social, and cultural ramifications of such in-
quite decidedly. terventions.
Furthermore, subversive engagement, for When a culture takes a reactionary stance to
strategic advantage, has also proven to be an abject intervention, this is what libertarians are referring
failure time and time again. Like monetary inter- to when they use the term 'blowback'. There is no
vention, heavy intervention into foreign affairs often assertion from the libertarian camp that America as
produces undesired consequences. While the con- a nation is at fault for terrorism, only that her mili-
cepts of liberty and democracy struggle to take hold tary strategies are so unsound as to allow it to
in Iraq, it must be noted that in the 1950s, secular thrive.
democracy had already entered the region. In 1953, This same principle applies not only to
Operation AJAX, a CIA-led action, deposed the only American foreign policy, but to foreign policy of
true democratic government Iran has ever seen. every sovereign governing body and international
Prime Minister Mohammad Mossadegh was over- organization. Governments that intervene militarily
thrown at the behest of U.K. industrial interests who and on a persistent basis into foreign cultures will
were angry over Iran's nationalization of their oil always generate resentment and tension.
fields. The Treaty of Versailles is often cited as the
The years that followed created a power vac- spark for the Nazi ascension in post-Weimar Ger-
uum... which the CIA sought to fill. The attempt many; undoubtedly, the heavy debt burdens im-
failed. The repressive monarch of Mohammad Reza posed on Germany by the treaty were a contributing
Shah poured gasoline onto Anti-American flames factor to the Republic's demise.
and paved the way for the Islamic Governing bodies
Revolution of the 1970s. Had “Governments that intervene like the United Nations
Mossadegh's secular government push 'do-gooder' interven-
remained in power, one must
militarily and on a persis- tion world-wide on the self-
wonder if the nuclear threat of a tent basis into foreign cul- proclaimed behalf of 'world
militant Iranian state would even
tures will always generate peace' and 'human pro-
exist. gress'... but what have the
The asymmetrical warfare be- resentment and tension.” implications been? Perpet-
tween conventional U.S. forces ual American involvement
and insurgents who blend into crowds is not allevi- in foreign conflicts. Most of the U.N.'s "peace-
ating the war between islamofascism and the West. keeping" programs have turned into global security
Thus far, it is merely politicizing the Middle-Eastern missions of nation-building thus perpetuating inter-
culture into one more favorable to the sentiments of ventionist policy. The U.N.'s "peace-keeping" role
militant Islam. The longer the U.S. forces remain has itself become one, long, protracted military
present in the civil, social, and cultural affairs of campaign, dragging the U.S. along for the ride.
these nations, the more opportunities the U.S. pro- Since the fall of the Berlin Wall, the U.S. has
vides to stir up new hatreds and expose new weak- become involved in numerous interventionist op-
nesses that opposing political forces will seek to ex- erations in conjunction with U.N., from Bosnia to
ploit. Somalia, and others. The United Nations has acted
All interventionist actions have conse- less as a forum for airing grievances and promoting
quences, those that craft western foreign policy peace, and more as a self-appointed World Police.
As the U.N. continues to pursue its own avenues for

perpetual intervention, the U.S. remains embattled
in Iraq and Afghanistan.
Recently, a leaked video clip captured footage
of U.S. forces mistakenly attacking and killing sev-
eral Iraqi Reuters reporters; the reporters were mis-
taken as insurgent forces. During the chaos, two
Iraqi children were injured. Their father, who was
attempting to help the wounded reporters, died in
the attack.
The children were recently featured on Al-
Jazeera speaking out about the incident; "Why did
The European Union:
they shoot us? Didn't they see we were only chil- Eurocrats and the Eurosphere
dren? The Americans wanted to kill us. Me, my
brother, and my father." During the 19th and early 20th centuries,
Hopefully, those two children grow up to be European governments came under attack for their
business owners, journalists, doctors, or teachers... colonial policies in the African
lest they succumb to the blood-lust for revenge. If continent. One of the primary Elliot Engstrom
they do give in, America will have traded a handful claims made by pan-Africanists and other anti-
of civilian journalists for two insurgents... and that European individuals was that such European poli-
does not seem to be in line with America's objectives cies denied the peoples of Africa the right of self-
of ending the threat of Islamofascism. determination. For example, the Declaration of
Rights of the Negro Peoples of the World, drafted at
Did You Know? a 1920 convention of the Universal Negro Improve-
Good prevailed and evil lost after the first issue of Foreign Policy ment Association led by Marcus Garby, stated, ―We
Handbook. That’s why we got rid of the image of Karl Marx on
the “left” side of our header and replaced him with a Realist and believe in the self-determination of all peoples.‖
Liberty :) Through policies ranging from direct rule via mili-
tary force to indirect rule via forced economic de-
pendency, European governments were holding Af-
rican countries back from determining their own
course.
While the modern ―third world‖ certainly is
not free from the tethers of traditional western pow-
ers, the situation has greatly improved from what it
was a century ago. However, modern European
governments are now directly denying the right of
self-determination not to the peoples of other conti-
nents, but to the peoples of Europe itself. Consider-
ing the rhetoric surrounding the European Union,
such as a commitment to ―sustainable development‖
and the goals of ―peace, prosperity and freedom‖ for
the people of Europe, this is a sad irony indeed.
For a people to be able to determine their man-Sachs – if they know that they have economic
own course, they must have the power to elect to of- giants like the UK and Germany to bail them out
fice – and remove from office – the individuals who when things go awry.
make policy concerning trade, currency, banking, A final problem with the EU is the massive
borders, transportation laws, and a variety of other amount of power that it wields, a power that is
issues. However, the European Union is entirely greater than ever originally intended when the EU
undemocratic in nature. The vast majority of deci- was formed on the foundation of the European
sions are made by the EU Commission, which is led Community. The
Photo courtesy of EuropeanWeekly.Org

by unelected commissioners and an appointed bu- European Commu-
reaucracy. The democratic element, the EU Parlia- nity was an eco-
ment, has very few powers and very little influence. nomic organization
The final element of the European political system, solely to be active in
the European Council, meets behind closed doors those areas that
and typically makes secretive deals about which lit- seemed to mutually
tle is known. The incentive to care about the con- benefit the member
states, but now the
Did You Know?
Three people died in riots in Greece this month after the euro EU is expanding
collapsed in this birthplace of democracy. into areas that would better be handled by individ-
cerns of individual European citizens is marginal ual nation-states due to factors like European diver-
compared to the incentive to serve the needs of the sity and the different types of situations encoun-
EU political machine itself. The recent Lisbon tered in different European countries. The Maas-
Treaty, which itself is in many ways a de facto Euro- tricht Treaty of 1992 began this leviathan-esque
pean Constitution, is just one more example of this growth, and led to the existence of such policies as
lack of respect for the concerns of individual Euro- the Common Foreign and Security Policy and the
peans. Sadly, this lack of respect for the right of self Justice and Home Affairs Policy. While an effort of
-determination is only one of the many problems this size can only summon so much evidence to its
with the modern European Union. side, the ultimate goal is to encourage readers to in-
As has recently been seen with Greece, the vestigate the ever-increasing scope of EU power for
European economic system has made European citi- themselves. Such a study will likely reveal that the
zens economically liable for the decisions of people European Union is doing far more damage than
with which they have absolutely no relations. Not good.
Photo courtesy of Mashable.Com

only is there a moral argument against this that
could frame this policy as tantamount to theft on a
massive scale, but such international economic de-
pendence also decreases the incentive for individual
nation-states to be economically responsible. In the
same way that American corporations will take
greater risks when they know that the Federal Re-
serve and United States Treasury will bail them out,
so will the less economically prominent members of
the EU take greater risks and run larger deficits –
cleverly disguised with the help of firms like Gold- Greek riots after the fall of the Euro, May 2010
China is aware that if they keep their cur-
The Next Threat rency at a lower rate than their consumers, in this
case the U.S., they can sell more products and
to American Sovereignty: goods, giving them an economic advantage. At the
same time, China recognizes the weakening dollar
and is trying to usurp it for other alternative de-
nominations. In a New York Times article, Professor
Roubini warns this troubling fact as China is pre-
paring to have its currency be ―means of payment in
bilateral trade.‖ China has made light of its position
towards the US dollar during the G20 summit, in
Sovereignty, the supremacy of political power which it called for a new international trade cur-
a nation has over its own actions, seems to be in rency.
threat. Since the To help support American spending, China
collapse of the So- Marissa Yturralde-Giannotta has become the largest creditor of the world, lend-
viet Union in 1991, the United States has experi- ing $1 trillion in bonds to the United States alone.
enced absolute hegemony in a uni-polar world. However, as time passes and America consumes
However, as globalization intertwines markets and more, China is becoming increasingly worried about
cultures, our neighbors to the East are gaining eco- its largest debtor nation. In March of 2009, Premier
nomic traction. As China continues to grow eco- Win Jinbao demanded that China be guaranteed the
nomically while America seems safety of American markets. These two factors point
to be experiencing the Japanese out the crucial lack of sover-
stagnation trend, sovereignty is “China possesses one eignty America is losing. In the
becoming weakened. This eco- thing the United States first point, China owning
nomic trend will inevitably treasuries and having the abil-
compromise American political doesn’t: human capital.” ity to become the creditor of
sovereignty, ultimately creating American spending shows the
a new world order. vulnerability of American sustainability. To cover
A national debt reaching over $12 trillion, expenditures, America depends on foreign states to
caused by extreme government spending, accounts credit its markets, as well as the Federal Reserve to
for the reason why American economic sovereignty create them.
is being compromised. Major problems in govern- China, thus, is beginning to create an eco-
ment waste, bailouts to private corporations, and a nomic upper-hand for itself. As the dollar weakens
trillion dollar overseas expenditure are causing the and China becomes worried about the safety the
debt to skyrocket. During the Obama Administra- Obama administration cannot provide, China has
tion alone, the national debt has risen over $1.5 tril- the power to sell (or dump) the treasuries. Secondly,
lion and continues to climb. Many economists re- China’s ―demand‖ for safe markets strongly portrays
flect this trend in the weakening U.S. dollar, the re- the former point, as China’s role in the world be-
serve currency around the world. When compared comes stronger. American political decisions, espe-
to the Chinese yuan, the U.S. dollar comes out cially towards the international community, are
strong. However, China has left the Yuan low largely provided on the basis of its hegemony.
mainly for an export advantage. China’s confidence to demand anything from the
United States dramatically shows the decline in U.S.

power.
Moreover, to further illustrate this point,
China possesses one thing the United States doesn’t:
human capital. In a country with over 1 billion peo-
ple and remarkable economic growth, the Chinese
middle class will inevitably keep getting larger.
Once the Chinese are able to obtain purchasing
Why Conservatives Should
power, they can produce and sell products to their
own domestic arena, leaving the country’s depend-
ence on American consumerism. This remains the
Hate
looming problem in many economists’ minds, as the
future of America is held largely with the Chinese. Our Foreign Policy
For the United States, the uni-polar world
will inevitably come to a close in the next century, as Let’s take a moment to examine some main-
nations such as China, India, and Brazil become stays of conservative thought: three total non-
growing players in the international world. Ameri- negotiables in the con-
can sovereignty has already been compromised eco- servative worldview from
Wesley Messamore
nomically and once the US is affected dramatically old standard-bearers like William F. Buckley, right
by its weakening economic sovereignty, decisions on down to the present-day Tea Party movement.
based on international circumstances will have to Number one: conservatives do not like wel-
carter to a more bi-polar political world. It is our fare programs. They destroy productive capital, re-
government of over-regulation and over-taxation distribute wealth, and sadly perpetuate poverty.
that causes the private sector to loose more jobs due Number two: conservatives positively hate corpo-
to rising costs. Government policies can change to rate bailouts (which are really just corporate wel-
create an economic and political change in this fare). They also destroy productive capital, redis-
country. If DC wants to remain in its position and tribute wealth, and incentivize risky behavior. Num-
retain its sovereignty, it must change its economic ber three: conservatives do not take kindly to the
policies. expansion of Federal authority over the states. It
consolidates power in too few hands, it leaves deci-
Want to write sion-making to distant bureaucrats who don’t un-
derstand a state or city’s local needs, and it’s usually
just plain unconstitutional, violating the tenth
for the Foreign Policy Handbook?

amendment.
How does this apply to America’s present for-
Be a Patriot. Join the Movement. eign policy? It commits all three sins against conser-
vative principles- and does so more extravagantly
Email the Editor: than perhaps any other government program or pol-
roy.antoun@yaliberty.org icy. If American conservatives are averse to the re-
distribution of wealth from some Americans to oth-
Find us on the web: http://www.yaliberty.org/ ers, how much more should they oppose the redis-
tribution of wealth right out of this country into the
hands of the people of other countries? Aside from decides how it should be spent, makes more and
more overt forms of foreign welfare, even our mili- more decisions in one distant city (Washington
tary policy often amounts to little more than welfare D.C.) that affect everybody else, and has rawer, un-
for the people of other countries. When our compas- checked power over the states and the people re-
sionate conservative president, George W. Bush spectively. Conservatives should not be happy with
bragged about the humanitarian nature of Opera- this state of affairs at all. While they may cheer the
tion Iraqi Freedom- he was bragging about expand- government’s decision to indefinitely detain poten-
ing our welfare state to include recipients in other tial terrorists without charges because it might
countries. Can conservatives honestly approve? make us more safe, conservatives would do well to
As for bailouts, or corporate welfare- the remember that our government’s Department of
number one factor that galvanized America’s resur- Homeland Security considers them potential terror-
gent liberty movement over the last two years- our ists.
foreign and military policy are fraught with it. The It should be clear from our examination of
terrible thing is how sneaky it is. If a lobbyist con- these three mainstays of conservative thought, that
vinces Congress to bail out their company with tax- conservatives (even more than socialist progres-
payer money, Americans can clearly see and oppose sives) should be outraged at our present foreign pol-
this policy as corporate welfare. But what if the lob- icy.
byist gets Congress to award his company a contract
for services the government can convince taxpayers
that it needs? Then the lobbyist and his company
can get away with the taxpayer’s money without in-
citing the taxpayer’s rage. But this is still corporate
welfare and it happens all the time- frequently in
the defense budget (which is one reason why de-
fense accounts for so much of the federal budget). Is
it so hard to believe that not all our defense dollars
actually make us more safe? That our politicians
just might be lying to us and spending that money
to make their friends and lobbyists and donors
wealthier at your expense?
Finally- the more involved our federal gov-
ernment becomes in a foreign policy of never-
ending troop deployments, peace-keeping missions,
wars, occupations, permanent treaties and strategic
alliances (like NATO and the UN), the more deci-
sions it necessarily makes for the several states
whether those decisions are best for each individual
state or not. Concentrating so much power in the
Be the Catalyst
hands of the federal government should make any Join the Foreign Service
conservative wary, and our present foreign policy
Visit <<http://careers.state.gov/officer/index.html>>
does just that. It ensures that our federal govern-
ment takes more and more money from states and Be the change in the Washington Machine
a riveting read, and will learn a lot about the CFR in

the process. It should be noted the CFR has some
members which may be considered promoters of the
cause of liberty, such as Amity Shlaes, author of The
Forgotten Man, a free-market account of the Great
Depression, which I recommend reading. Shlaes is a
senior fellow with the organization.
Two other groups which, along with the CFR,
are often accused of abetting in a globalist conspir-
acy are the Trilateral Commission (TC) and the
Who Controls Bilderberg Group. I have yet to come across any lit-
erature which defends the two groups against accu-
sations made against them, which is mainly that
Our Foreign Policy? they are working towards globalism and against
American sovereignty. One book that offers insight
Many different groups influence foreign pol- into both groups is The True Story of the Bilderberg
icy in the United States. The purpose of this article Group, the North American Union Edition, by
is not to discuss in depth how each of the groups Daniel Estulin. While it is hard to prove or disprove
that will be mentioned affect some of Estulin’s accusations, he does provide a
Brandon DeMeo foreign policy, but to men- very in-depth look into the history of both groups,
tion some major ones who do, and some resources as well as some attendee lists, which you may find
to study them further. This subject is often contro- surprising. No one can deny both groups exert mas-
versial. I suggest studying them through the lens of sive power over American foreign policy. President
a skeptic, but with an open mind. Jimmy Carter was a Trilateral Commission member
The first group is the Council on Foreign Re- himself, and President Bill Clinton attended a
lations (CFR). They are ―an independent, nonparti- Bilderberg Group meeting before becoming the De-
san membership organization, think tank, and pub- mocratic nominee in 1992. Remember that bizarre
lisher,‖ according to the official CFR website. Their moment during the 2008 election where President
members include media personalities, globalist ce- Obama’s plane took off with a bunch of angry re-
lebrities, and powerful politicians and bureaucrats, porters inside, and no then-Senator Obama? Many
among others. Their members have exerted much allege that President Obama was actually attending
influence on our foreign policy since their founding the 2008 Bilderberg Group meeting in Chantilly,
in 1921. While the CFR has no clear, discernable Virginia.
agenda, it is their individual members who influ- The American Israeli Public Affairs Commit-
ence foreign policy, not the group itself. tee (AIPAC), which calls itself ―America’s pro-Israel
The best book I have come across in re- lobby‖ on its website, is influential in obtaining US
searching the CFR is The Shadows of Power: The government support for the Israeli government. AI-
Council on Foreign Relations and the American De- PAC makes the interests of the Israeli government
cline, by James Perloff. It basically asserts the CFR paramount. For further study on AIPAC from a lib-
is a ―hidden oligarchy‖ of sorts, and even if you do ertarian angle I highly recommend the antiwar.com
not agree with its conclusions, you will likely find it articles which pertain to them. Grant Smith wrote
an excellent article on how AIPAC spies on Ameri-
cans. Philip Giraldi, whose writings often appear on two democracies ever go to war with one another
the Campaign for Liberty website, wrote an article because, as Kant professed in Perpetual Peace, peo-
on antiwar.com entitled ―The Best Congress AIPAC ple in an electoral system will never vote for a leader
Can Buy,‖ which I consider a good starting point for who is willing to send them to war. He wrote,
studying the negative effects of AIPAC on our for-
eign policy. “If the consent of the citizens is required in order to decide
While these are not the only groups which that war should be declared (and in this constitution it can-
not but be the case), nothing is more natural than that they
influence our foreign policy, they are four of the
would be very cautious in commencing such a poor game,
most important. Clearly, our interventionist foreign decreeing for themselves all the calamities of war.”
policy is due in part to influences by groups which
have other goals in mind than national security. Many fail to recall the evolution of democ-
That is the inherent danger in these groups; they do racy over the course of history. Democracies weren’t
not put America and its citizens and its military men born overnight, neither were they byproducts of
and women first. They put their special interests some divine intervention or gift from god. Repre-
first. sentative governments evolved from thousands of
Photo courtesy of FineOldArt.com years of feudal, oppressive systems that dictated so-
cial law and restricted the free flow of capital by
means of serfdom, slavery, religion, excess taxes,
social control, and divine right. The Enlightenment
was a product of Feudalism, and even then, the
teachings of Locke, Hume, and Voltaire took an-
other hundred years to be partially implemented
into European society. By the early 1800s, Napoleon
Bonaparte transformed the French Republic into
the French Consulate which had three voting bodies
Law or Hoax? and plural suffrage. France, under Napoleon, had

administrative departments, established higher
education, a tax code, infrastructure systems, and a
Disproving Democratic Peace Theory central bank. It had all the ingredients to make an
E.U. eurocrat believe that Napoleon was the missing
Many academics and so-called politicians of-
link. And so did England. England had a parliament
ten argue that Democratic Peace Theory (DPT) is
with dual Houses, a House of Lords and a House of
close to becoming international relations law. While
Commons. The United States had a functioning
many Libertarians and liberty-
Roy Antoun Constitution and a representative body as well. Yet,
minded individuals uphold the
France and England went to war for the better part
mantras of free markets, advocating nation-building
of the early 1800’s, and England and the United
for the sake of free trade is the philosophical equiva-
States went to war within the same timeframe.
lent of Adam Smith resurrecting from his grave and
As Democracies evolved through revolution
agreeing with Vladimir Lenin on the science of his-
and radical political reform, they also grew hege-
tory; it’s blind neoconservatism at best. Nation-
monic. Britain, with a representative Parliament,
building-Democratic-Caliphates violate state sover-
developed an empire that covered one-third of the
eignty and induce blowback. DPT suggests that no
globe. The English mantra soon changed to, ―The
sun never sets on the English Empire.‖ France ex-

panded into the Middle East and North Africa after
establishing its Republic in the late 19th century.
Germany developed colonies through wars in South
Africa; the United States established protectorates
in Cuba, the Philippines, and the list expanded over
time. Even recently, Americans reelected President
George W. Bush in 2004 on the terms that he would
continue the colloquial ―War on Terror‖. Democra-
cies are not naturally peaceful; rather, they are a by-
product of whatever cultural elites sell it to be, in
War of 1812: Two Democracies at War
this case, hegemonic. If the president woke up one
morning and decided that democracies operating on ernments went to war with one another in the Indo-
non-Western standards would henceforth become Pakistani war of 1965. The Falkland Island War of
enemies of the U.S., it is almost guaranteed that, if 1982 was fought between Britain and Argentina, of
sold properly, culture will follow which both had representative
along with the self-professed elite. governments. Although many may
“Governments go to
But this isn’t a matter ―if‖ the argue that these listed countries
president will do this – he already
war with one another; were not ―Democracies‖ in today’s
has, hence, our distaste for states people do not.” Western standards, the listed
such as Egypt, Iran, Palestine, and countries had wide representation
Venezuela. of some fashion or another with an electoral body
However, Democracies not only go to war not limited to just aristocratic members of society.
with other states but also go to war with each other.
The War of 1812, fought between the United States Democratic Peace Theory is also a Western
and parliamentary England, was the first example of invention. Democracy within itself is a Western in-
how two representational states were capable of vention and has been crafted by Western thinkers.
warring against one another. The Franco-Prussian Immanuel Kant, author of Perpetual Peace, resided
War of 1870-71 was fought between the French Re- in present-day Germany where the theory was first
public and a parliamentarian, representative Prus- devised. By ―Western‖ I am eluding to the Hunting-
sia. India and Pakistan, two parliamentarian gov- tonian concept of the Cold War-Western World
which consisted of the United States, Canada, and
Photo courtesy of PsyWar.org
Europe, minus South America and Russia; ―drug

lords‖ and ―commies‖ need not apply when neocon-
servatives reign the American Empire. This inven-
tion does not suggest, however, that culture is in-
nately democratic; cultures are whatever their elites
make them to be and are always prone to change.
Rather, Democracies have the dangerous potential
and tendency to be hegemonic, especially when its
elected leaders wish to promote those ―democratic
The Falkland Island War: Two Democracies at War
values‖ abroad. And hence, Democratic Peace The-
ory is born on this concept: if the world desires to be war whereas the military-industrial complex is.
free, then democracies are obliged to make the Nonintervention and open markets, however,
world free for the sake of perpetual peace. But per- are a safer alternative to seeking a more peaceful
petual peace inevitably relies on perpetual war. As world. Democracies are, in essence, premature re-
cultures change, governments change. Democracy is publics. Allowing nations to determine their own
never permanent and neither is any form of govern- paths to republicanism (which is how most Euro-
ment. The only thing perpetual is the theory. Play- pean nation-states and the U.S. formed their gov-
ing ―world police‖, or a real life version of RISK, ernments) is far safer than the nation-building man-
with the intentions of preserving democratic values tras of Democratic Peace Theory. Although this al-
eventually drains economies for the military en- ternative does not eliminate the possibility of war, it
forcement of said values. To ensure ―freedom‖, the most certainly reduces it.
U.S. has fought over five major wars in the past cen- When governments become indebted to one
tury which have only resulted in perpetual conflict another either fiscally or ideologically, they become
today. vulnerable to war and discontent. When private
In an age where state governments dictate businesses become indebted to one another, they’re
social and economic policy, Democratic Peace The- forced, under the rule of law, to settle matters le-
ory will be put to a much greater test. The theory gally because they have no militaries. But govern-
also suggests that states which trade with one an- ments do and that is precisely what makes them so
other are less likely to go to war due to fiscal de- dangerous and volatile. That is why democracies are
pendency. This is perhaps doubly more dangerous essentially hazardous without the rule of law. That
than Engels’s prediction of a global communist is why people have established republics; when peo-
revolution. States that traded with one another ple stray from republican forms of government and
throughout history have always gone to war, pre- adherence to law becomes moot even on an interna-
cisely for economic reasons. The Anglo-Dutch Wars, tional level, states become prone to war and conflict.
the War of 1812, and the World Wars, just to name a Democratic Peace Theory is flawed and obsolete for
few, were sparked by states that already established these reasons. Democracy or not, so long as people
trade with one another or were angered over debt allow the growth of the state, war will forever be the
and mismanaged bureaucratic economies. Interven- health of the state.
tion in the marketplace, like interventionism in for-
eign policy, gave the Nazi Party the parliamentary
majority in Germany and fascism in Italy. Democ-
racy is not permanent and that is the major flaw in
Democratic Peace Theory. Even if they were, gov-
ernment will always find new reasons to conduct
war.
Governments go to war with one another;
people do not. Senator George McGovern once
stated, ―I’m fed up to the ears with old men dream-
ing up wars for young men to die in.‖ He was refer-
encing how the ―old men‖ elected into office often
send young men to war and never vice versa. Why?
Because individuals are simply incapable of waging For an interesting read, pick up Ivan Eland’s The Empire Has No Clothes
feel they need to go to extreme measures to kill ―the

west.‖— this first comes with the understanding of
Middle Eastern history. The aftermaths of Septem-
ber 11th didn’t give the public much time to ponder
why they attacked ―us‖ before President Bush an-
nounced the nation. The President stated that Al-
Qaeda’s motive for the attacks were solely based on
the hatred of ―our freedoms, our democracy and our
wealth.‖ As a result, the nation believed this conclu-
sion. Bin Ladin, used this for his advantage to re-
cruit more members into one of the largest terrorist
organizations in the world. In this paper, I will ex-
Explanations for plain how globalization and a ―lack of democracy,‖
have been used efficiently by terrorist organization
Continued Terrorism: such as Al-Qaeda.

In a speech made right after the attacks, Bin
Globalization and Lack of Democracy Ladin stated the reasons and justifications for his
actions. In what would become his 9/11 Speech,
Historical: Bin Ladin’s Al-Qaeda Ladin stated that the Middle East, ever since the
On September 11th, 2001, a day in which al- forced break up of the Ottoman Empire after World
most all Americans remember vividly, the images of War 1, has been left weak and only governed by
two towers collaps- western states. Arab nations under the control of
Marissa Yturralde-Giannotta ing in the midst of mainly British mandate powers, never fully reached
New York City, united a country in unprecedented sovereignty. They could never govern themselves
ways. The passion and patriotism that exploded af- the way they wanted to in their own holy land.
ter the traumatic events integrated the efforts of bi- Moreover, Bin Ladin illustrated that military inva-
partisanship across Washington. Democrats and sions particularly from the United States have done
Republicans alike came together in a time of great nothing but harm to the Arab nations. He elaborates
weakness in our nation’s history. As America would on Afghanistan’s participation, headed by the
begin a war on the Middle East, the Arab World was United States, to end the Cold War. The US gave Al-
preparing to continue one. Eight years and almost Qaeda equipment to defeat the Soviets and subse-
$700 billion later we still face the same challenges quently radicalize them for our own national secu-
we did on September 12th, 2001. Since the attacks rity interests at the time. A few years later, the US
on the World Trade Center our efforts to reduce na- had sided with Iraq’s former and late dictator Sad-
tional security threats and bring vengeance on ter- dam Hussein during the Iraq-Iran war. We then
rorist have failed. Our tactic and understanding of changed diplomatic ties with Iraq and put trade
terrorism have been essential to the failure of what sanctions that caused many to die of starvation and
many would say a ―no win‖ war. other related diseases. Additionally, Bin Ladin used
To explain why battling terrorism has failed, the Arab-Israeli conflict in Palestine. Palestine has
we first must understand the motives of our ene- been unable to achieve territorial and judicial sover-
mies. In other words, we must try to learn why they eignty while Israel gained independence in the
1960s with Western support. Economic and military
aid from the US has been used in Israel against Pal- region, we no longer possess soft power or adora-
estinians when trying to achieve self-determination. tion that most of the world did towards the United
The power Israel has been able to secure is largely States.
due and maintained by the West, particularly the The globalization theory also states that the
United States. Bin Ladin strongly advocated for the ―have-nots‖, or the impoverished, are encouraged to
ending of this aid and the US participation in Arab- take steps against the unjust actions occurring in
Israeli conflicts. their state. Globalization creates a sense of rejection
to the world’s progression that many of these ―have-
The Power of Globalization: Explanation #1. nots‖ possess. This, however, is not consistent with
While many states (Iran, Syria etc), even the findings as seen with terrorist organizations. Al-
those who disagreed with the United States, showed though it does encourage a population to take ac-
initial sympathy for the attacks, the public was still tion, most impoverished are not concerned with a
unconvinced of the war radical political agenda
the United States was that Bin Ladin is trying to
about to wage in their sell. Instead they become
land. Globalization, or in- indifferent or in many
tegrated global communi- cases oblivious to the
cation, has played a cru- events happening in in-
cial part in terrorism. The ternational politics and/
transfer of images, includ- or history. Because there
ing video and photos, is a significant population
gives a live feed to the living in rural and/or im-
events happening in the poverished in the Middle
Arab region. In this case, Photo courtesy of OldAmericanCentury.Org
East, access to daily news
these images are shown on does not reach a percent-
many television sets and Can democracy be hegemonic? age of the people. Rather,
computer screens accessible the impoverished are
to many Arabs. In Arab eyes, the chaos and destruc- solely concerned with the tasks of daily life than
tion occurring is directly correlated to U.S. occupa- some political agenda. Because globalization leads
tion in the region. Thus it is easy to connect that Bin to prosperity and modernization, only the upper
Ladin, in a wicked sense, becomes a ―freedom class, those who have leisure time, and/or those
fighter‖ to many Arab people. In some form, some considered intellectual, develop such feelings. Thus,
Arab people and even some states (indiscreetly) har- most terrorists, despite popular belief, are actually
bored a sense of satisfaction that America was now the cultured of the Middle East who have accessibil-
tasting what the Arab world was tasting for years. ity to world events rather than poor uneducated ru-
Even if it is right or wrong, Arabs directly point the ral ―have-nots.‖
blame to the United States. Many critics of the Iraq
War, including, Congressman Ron Paul, point out Political Power Vacuum: Explanation #2.
that globalization is the main reason for continued The years after 9/11, many in DC were con-
resentment towards the United States that inevita- vinced that a lack of democracy was one of the di-
bly breeds terrorism. With our foreign policy being rect causes of terrorism. This theory, constantly
displayed on all different kinds of mediums in the used by neo-conservatives and other politicians, as-
lowed much mobility within the terrorist organiza-
Photo courtesy of TheAge.com.au

tion to assemble and recruit. Without a legitimate
government with actual policing force, an environ-
ment is created where terrorists are allowed to con-
tinue their work and move throughout borders to
influence and gather more recruits. For the United
States, this means the supply-side of terrorism is
still not being addressed.
Explaining the reasons for terrorism is by no

means a justification towards it. Rather, by explain-
ing the reasons on how terrorism is created, main-
serts that totalitarian states harbor more terrorists tained, and manifested it allows the United States to
because of the lack of individual rights, or in essence battle terrorism efficiently with potentially less loss
democracy. Individual rights and liberties, including of life. However, seeing the continued resentment
those in the Bill of Rights, provide protection of the the Arab people have towards the United States, il-
individual from the government. The government, lustrates that American foreign policy regarding the
therefore, has checks and balances from the collec- region needs some viable change or more blowback
tive society. A totalitarian regime (a state that lacks will undoubtedly occur. Its important to highlight
democracy), they advocate, leads to mass dissent the historical reasons for the cause of this resent-
and rebellion within the population, or in this case, ment as seen in the Arab eyes. Globalization ampli-
breeds terrorism. Thus, the United States views a fies the resentment and a lack of democracy mobi-
lack of democracy, especially within the Arab States, lizes it. Although these are not the sole two reasons
as an environment in which terrorism can easily for the continuation of terrorism, they are impor-
spread because of the discontent dwelling in the tant to the understanding how terrorism is still able
public. to act discreetly, going through weak government
The problem with this theory is that empiri- infrastructure and becoming transnational (and
cal evidence disproves its conclusion. While there is now transcontinental with terrorism recruiting in
political dissent in totalitarian regimes, most are Europe) organizations. As previously mentioned, to
eradicated quick and efficiently. The totalitarian re- have the United States efficiently battle terrorism to
gime in Iraq exemplifies this notion. Saddam Hus- stop further loss of innocent lives, there must be a
sein’s regime would publically show its aggression study of the supply-side of terrorism and how Bin
towards any dissenter. Furthermore, totalitarian re- Ladin and others alike have been using it to their
gimes act as big brothers in the society, heavily advantage.
monitoring culture; therefore, there is no room for
ideas to develop or assemble under heavily moni-
tored societies (totalitarians, authoritarian). There
has been no evidence to support that Iraq was har-
boring terrorists or that terrorist activities were be-
ing conducted under the radar of the totalitarian re-
gime. Rather, because of the power vacuum that has
occurred, terrorism has grown in Iraq and has al- YALIBERTY.ORG/FPH
Throughout the 1960s, the IMF and World

Bank both became more powerful. Now the IMF
also functions to ―stop trade deficits‖. Nearly every
United Nations member is a member of both the
World Bank and IMF and they are funded almost
entirely by membership fees. Or in other words, tax
dollars.
Most IMF and World Bank loans are given
with stipulations. The money must be used in a cer-
tain way or certain policies must be implemented to
the liking of the IMF. Often this involves currency
devaluation or other monetary manipulations. At
other times, it involves erecting trade barriers or re-
moving them. In this way, the IMF and World Bank
effectively bribe politicians of countries to enforce
policies that these unaccountable technocrats see
fit. Whether these policies are wise or not is not the
Epic Fail:
How International Financial Institutions
issue but rather the perverse incentives created by
the institutions to destroy the democratic process in
the countries to which the IMF and World Bank of-
fer loans. Worse yet, after these stipulations are
Are the Causes of World Problems made, if the government seeks forgiveness of debt,
often it comes with only more stipulations. Lastly,
The International Monetary Fund (―IMF‖),
this sort of massive loans to governments instead of
along with the World Bank, was created in 1944 at
credit-worthy private sector businesses encourages
the infamous Bretton Woods
only central planning, which has been shown to fail
Daniel Suraci Conference. The conference
consistently.
is most commonly known for creating the dollar as
Furthermore, there is no democratic process
the reserve currency of the world after massive in-
for the citizens of the countries giving the loan. The
flation during World War II destroyed most coun-
IMF and World Bank is giving loans completely
tries' currencies.
while completely unaccountable to the people whose
At conception, the IMF and World Bank were
money they are using for them. This ends in the us-
understood to have been created in order to reestab-
age of
lish the ravaged world after World War II. The “With the advent of this fiat
Ameri-
World Bank had the goal of ―economic and social
can tax- currency, it allows massive
progress‖, while the IMF was to allow for currency
payers arbitrary inflation of the
exchange and act as a lender of last resorts for in-
in a va- global money supply.”
debted nations. Before World War II, the world
riety of
used an international gold standard for money.
ways that they would not approve. The IMF and
Now, without a gold standard, the stated reasons for
World bank have funded various dictators over the
creating the IMF was to make foreign currencies
years from Argentina to Zaire, many with poor hu-
available freely and sufficiently to promote trade.
man rights records. Even though the loans are
given with stipulations, money is fungible. This for companies to organize but countries as well. By
means that when an international financial institu- preventing this reorganization, the IMF prevents a
tion gives one million dollars to a dictator for country from resolving the mistakes which led it to
―infrastructure projects‖ or ―food, blankets and ne- its collapse. The IMF has created its own fiat cur-
cessities‖, that is one million dollars he can use for rency called Special Drawing Rights (―SDR‖) which
bullets, propaganda, etc instead of supplying those allow it to effectively give any country however
basic needs. much money the IMF sees fit. Granted they are
John Perkins, author of Confessions of an supposedly bound by their reserves, but in the end,
Economic Hit Man, levels another critique at the they can forgive the debt. The IMF cannot go bank-
IMF and World Bank: that they are similar tools of rupt.
corporate welfare. When a government creates an With the advent of this fiat currency, it allows
infrastructure project, they must hire a company. massive arbitrary inflation of the global money sup-
This tends to be a large American corporation which ply. While before, when the international standard
effectively lobbies for the job. The companies hire was gold, the money supply was limited by the finite
economists to use econometrics to show massive nature of gold. Now, the total money supply is kept
growth and sustainability, even where it does not in check merely by technocrats. Obviously, the ef-
exist. The governments then take out a massive fect of this will be much more localized as the well
loan from the World Bank, and then use it to buy connected in each country are paid with an arbitrary
the labor of an American company. In this way, the amount of SDR , it acts in the same way that a Fed-
World Bank acts as simply a roundabout subsidy for eral Reserve increase in the money supply does do-
American businesses. mestically. Again though, the IMF's inflation is cre-
The IMF has one decree which should bother ated far from the reaches of any democratic process
Americans after the financial collapse of the past within the country's constituents.
years: the ability to bailout indebted nations. Much Lastly, the IMF and World Bank present a
of the same rationale for why domestic bailouts for legal problem and not simply policy ones. Where is
companies are bad are the same for countries. Pri- the Constitutional authority to use federal tax
marily, (1) moral hazard and (2) preserving a status money to fund international institutions? Even
quo that has failed. Bankruptcy is a time not only though the executive is given the authority to create
treaties, Congress must sign them, and can only en-
force provisions pursuant to their enumerated pow-
ers under the Constitution.
The IMF and World Bank show the failure of
central planning and of bureaucracies over and
In Next Month’s Issue of over. In only this brief survey of the macroeco-
nomic problems created by the IMF and World
Foreign Policy Handbook Bank, they cause financial, monetary, legal, political
and economic problems. This does not begin to
 In Depth Look at Greece & the Federal Reserve touch on the actual effects felt in the microeconomic
affairs of the average citizen in the countries
 Why Google Made the Right Decision touched by these institutions. The IMF and World
Bank are unjustifiable, and serve only to waste re-
 Will Afghanistan ever end? Wargaming! sources. As Dr. Ron Paul stated, ―The IMF is a relic
of an era when power-hungry bureaucrats and de-

luded economists believed they could micromanage
the world's economy.‖ Today, it is time to move on
from such delusion.
Suggested Reading
By the FPH Team
“Anyone who has ever looked into
the glazed eyes of a soldier dying
on the battlefield will think hard
before starting a war.”
- Otto von Bismarck

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Issue II | May 2010

“When you want to fool the world, tell the truth.”

Law or Hoax? Disproving

The European Union:

YOUNG AMERICANS for LIBERTY

The War on Terror and Sun Tzu:

3 Why Does NATO Still Exist?

7 The European Union: Eurocrats and the Eurosphere

9 The Next Threat to American Sovereignty: China Wesley Messamore

13 Law or Hoax? Disproving Democratic Peace Theory Brandon DeMeo

YAL MISSION STATEMENT

YAL STATEMENT OF PRINCIPLES

Collective action and international institutions have

threat to any of its members constitutes a general

Photo courtesy of NATO

Photo courtesy of NATO

cal factions, both 'left' and 'right', that libertarians

Photo courtesy of The Washington Post

As the U.N. continues to pursue its own avenues for

Photo courtesy of EuropeanWeekly.Org

Photo courtesy of Mashable.Com

China is aware that if they keep their cur-

United States dramatically shows the decline in U.S.

for the Foreign Policy Handbook?

a riveting read, and will learn a lot about the CFR in

Law or Hoax? and plural suffrage. France, under Napoleon, had

sun never sets on the English Empire.‖ France ex-

Europe, minus South America and Russia; ―drug

feel they need to go to extreme measures to kill ―the

Continued Terrorism: such as Al-Qaeda.

lowed much mobility within the terrorist organiza-

Photo courtesy of TheAge.com.au

Explaining the reasons for terrorism is by no

Throughout the 1960s, the IMF and World

of an era when power-hungry bureaucrats and de-

- Otto von Bismarck

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