Can Blacks use the law of discovery to carve out new territory and capital?

One of the failures of black leadership is its unwillingness to pursue a truly self-interested agenda for the people they allegedly represent. The current narrative of assimilation does not work. It puts blacks in an unequal and weak position compared to whites and other non-white populations who have pursued a capital acquisition policy first versus a political empowerment/assimilation approach still preferred by most blacks. It never discusses in any significant way the acquisition of productive capital around which communities can be built. Rather, the assimilationist argument centers on fluffy subjects such as social justice, membership of degreed blacks on the boards of white-owned corporations, and affirmative action in the workplace and in colleges and universities.

To be fair, a number of grass roots advocates do bring up the topic of access to capital by black-owned firms, but the problem is that business capital, whether in the form of loanable funds or equity investment is small compared to the number of black businesses in need of funding. Also, there is the risk that terms and conditions underlying the funding of black enterprise firms may not representative of the black population primarily because the boards that direct these underwriters are probably not members of the community in the first place. Just take a look at the names and faces of the members of the typical executive committee or board of directors and you see my point.

Blacks, as a people, simply are not calling their own shots. If you listen to the rhetoric of current black political leaders, liberty and freedom as it pertains to capital, are not a part of the lexicon. Black political leadership is more concerned with keeping blacks available to vote for white Democratic Party candidates as opposed to self-reliance. Probably in the minds of black political leadership, self-reliance would be akin to self-determination or nationalism and these leaders are afraid that such an approach would sever their attachment to America. But the attachment to America is false one, as I have argued before, because blacks did not come here voluntarily and apply the law of discovery.

To summarize Chief Justice John Marshall, the European came to North America but while acknowledging its Native American occupants, the law of discovery, of showing up first, gave title to the country making the discovery. That Native Americans were there first was irrelevant. Once, say England, made its discovery of what would later become the United States, it created a title that excluded claims by any other European power. Establishing this “title” over the land meant of course establishing control over its natural resources; land, air, water, minerals, the stuff that supports production, transportation, communications, energy generation and distribution.

To the activities that land, water, air, minerals, paid, indentured, and enslaved labor supported, the European was able to attach “coin”; to monetize. He would later create a centralized banking system to underwrite his government’s issue of debt as well as serve as the lender of last resort to commercial banks. The European’s financial system would, in conjunction with public sector investment, underwrite technological innovations that would further spur the design and production of consumer goods and services.

Blacks have been left largely out of the ownership of productive capital in the American political economy and as I have discussed in previous posts, it is too late and probably impractical to attempt any action under the laws of discovery for the purpose of acquiring the natural resources that underpin an economy that would support 43 million people on a self-sustainable, self-reliant way. But I do not think this is impossible.

Cyberspace provides “territory” that blacks can conquer and extract capital from. From the time I immigrated to the mainland I have always believed that blacks had the intellectual resources to construct their own vibrant economy. It boils down to a willingness of the black population to use broadband technology to connect to and import resources from outside of the United States and mixing those resources with the access to land, air, minerals, and water that blacks have here in the United States. It means the black population using its engineering skills to build a renewable energy infrastructure that provides electricity to its population. It means building communications networks using unlicensed to spectrum to tie black households to basic services. It means using the black population’s legal talent to advocate for laws that protect the importation of items into the United States that can be processed by plants designed and built in the U.S. by black engineers. It means using financial talent to reinvest these proceeds back into the black population and further growing its resources and income.

The great thing about applying the “law of discovery” to cyberspace is that no one has to be kicked out or enslaved. There is still plenty of territory to carve up; to reverse colonize but this time with equitable results.

There is too much “we” in our mindless political analyses

Recently I saw a meme on my Facebook feed that asked, “How did my freedom end up in Afghanistan?” As July 4th approaches I cringe at the thought of all the patriotic messages that will be spewed especially by Blacks born here in the United States. Their thoughtless blithering on “freedoms” and “blessings” form the basis for the observation in the Afghan meme.

Thoughtless because it is beyond me how a small Central Asian country that has poppy as its main crop could pose any danger to my ability to walk around my neighborhood; eat my turkey sub; write this blog post; apply for a job; or watch a movie.  Yes, the Afghans are notorious for rightfully kicking the asses of imperialist British and Russian invaders, but if anyone’s freedom is being threatened, it is that of the Afghans who have a 150 year of more long history of battling uninvited guests.

Blacks in America should be especially mindful of latching on to the “we” word.  A group of people who only saw their rights as citizens fully incorporated by law within the past 60 years should be pulling back from the assimilation rhetoric of current misguided or disingenuous political leaders.  So quick to be accepted are blacks that it is easy to spout the mindless adages that will flow more freely than beer during July 4th.

It is too easy for blacks to scream that the Russians attacked “our” election process.  Really? How so? Did the Russians stop 20 million eligible black voters from going to the polls and choosing Hillary Clinton?  How is it “our” process when diverse voices within the black population can nary get support from fellow blacks?

The second problem with “we” is that it reinforces the myth that the black population is a political monolith.  Black over-indexing in support for the Democrats creates group speak and gives the Democratic Party the emotional, Pavlovian responses that make good sound bites for television talking heads and thirty-second video clips for MSNBC.

The appropriate unit of analysis for reflection should be “I”. Democracy and the partisan politics that flow from it have made Americans fearful of sounding selfish or anti-social. Avoiding the “we” is painted as anti-collective and creating disharmony.  Focusing on the “I” fears collectivists, especially the collectivists on the Left because the “I” means operating in an environment of mental and emotional discipline, and when operating in the space raises the chance that the individuals says, “Hey. Not so fast, collective. That’s not where I want to go.”

It is time to pursue more independent thinking. Time to stop fearing the “I”.

A Black political strategy for debt markets. Stay out of them.

You cannot resolve poverty within the black population by attempting to put more blacks into credit markets. Poverty is a function of capital: the less capital you have, the greater the likelihood that you that you will be poor.  Specifically, the more income-generating capital you own, the less likely that you will be poor.  The black political elite believe that if more middle income and poor blacks can borrow money, they would be able to purchase homes, cars, appliances, and the other trappings of consumer life; thus, living the American dream while claiming a stake in assets.  This approach is wrong because it fails to properly address the first act that was necessary for capital acquisition in America and also fails to reconcile the original acts of acquisition with the current barriers to capital acquisition and the alternatives available especially to non-affluent blacks.

Original capital acquisition in America was the result of theft.  This may sound cynical unless you have looked at the history of capital acquisition in America from the beginning of its colonization by European countries.  Take for example the language used by U.S. Supreme Court chief justice Marshall in Johnson v. McIntosh when discussing the principle of acquisition of discovery:

“While the different nations of Europe respected the right of the natives, as occupants, they asserted the ultimate dominion to be in themselves; and claimed and exercised, as a consequence of this ultimate dominion, a power to grant the soil, while yet in the possession of the natives.  These grants have been understood by all, to convey a title to the grantees, subject only to the Indian right of occupancy. The history of America, from its discovery to the present day, proves, we think, the universal recognition of these principles.”

Chief Justice Marshall then goes on to describe how England went about implementing this universal law:

“So early as the year 1496, her monarch granted a commission to the Cabots, to discover countries then unknown to Christian people, and to take possession of them in the name of the king of England. In this first effort made by the English government to acquire territory on this continent, we perceive a complete recognition of the principle which has been mentioned. The right of discovery given by this commission, is confined to countries ‘then unknown to all Christian people’; and of these countries Cabot was empowered to take possession in the name of the king of England.  Thus, asserting a right to take possession, notwithstanding the occupancy of the natives, who were heathens, and at the same time, admitting the prior title of any Christian people who may have made a previous discovery.”

In short, we came and discovered the place. The natural capital lying above and below the land is ours and you leave when we say so.  Chief Justice Marshall said as much when he continued:

“Discovery gave an exclusive right to extinguish the Indian title of occupancy, either by purchase or by conquest … The title by conquest is acquired and maintained by force.  The conqueror prescribes its limits.”

This acquisition by discovery drove, in my opinion, the philosophy of manifest destiny; that white America was destined to spread western civilization and republican democracy to unoccupied territories from whence Native Americans had either been eliminated or removed. The Homestead Act of 1862 and resulting grants of land, this time from the American government, put into the hands of people of European descent more natural resources including land and access to minerals and fuel sources for little or nothing.

Americans of European descent had a considerable head start. But other than establishing that original land acquisition in America is mostly the result of theft, what does this have to do with capital and credit markets? Because land and other natural resources are the anchors for debt markets. They serve as the collateral that backs up loans that are invested into the debt markets. In other words, they create the funding used to underwrite consumer and other debt.  Make the wrong bet and you could lose the family farm. Make the right bet and you have expanded your commercial enterprise from farming into other lines of business.  Occupying the credit generator/underwriter portion of the debt market is where the wealth creation takes place. Asking blacks to occupy the consumer portion of this market, especially when blacks do not have substantial land or mineral resources ownership is the same as putting blacks back on the plantation.

The black political elite cannot take the black population back in time where blacks can set up their own system of original theft in North America.  The black political elite could discourage blacks from entering a credit system that charges them an interest rate on loans that exceeds those as whites, that treats a black couple looking for a mortgage as a credit risk even when that couple has more than sufficient income to qualify for a loan.

One policy recommendation is that while blacks pursue as many income opportunities as possible that they avoid credit markets.  Blacks do not have the political power nor does the rest of America have the political will to offer up another “Oklahoma land rush” specifically tailored for black Americans.  Blacks do have more control over their spending. Paying off debt (much easier said than done) and not purchasing any more money not only leaves more money in the pocketbooks of black people, but sends a message to the bond markets and eventually the U.S. government that if either the markets or the government want blacks to get back into the consumption game, then there will have to be major changes in capital allocation policy.

Is cryptocurrency beneficial to poor Blacks? No.

Yesterday the Bank of International Settlements issued an annual report with a 24-page chapter discussing cryptocurrencies. The report is critical of cryptocurrencies and the premise of decentralization. It argues that cryptocurrency lacks the stability in value and pricing brought about by a centralized payments system. While I am not surprised by the report’s bias toward centralization (BIS is after all the central bank of central banks), I appreciated the detail the report went into when describing decentralized ledger transactions and comparing that system to a centralized, central bank-based system.

The volatility of cryptocurrencies like Bitcoin experience may be enough for most consumers to ignore cryptocurrency as a store of value or a medium of exchange.  As was a little perplexed last year when I saw a number of black Americans pushing cryptocurrency as the next big and best bet for achieving wealth. The sidewalk marketing was being done in an environment of unexplained rising Bitcoin value. I am not lying when I say I felt good about Bitcoin falling from highs of about $20,000 end of last year to around $7,000 today.  These people I saw riding buses through Brooklyn telling people to get onboard something so bloody technical that most never understood it needed a reality check, and the relative quiet I experience on social media from the silence was refreshing.

More importantly a pullback invites putting cryptocurrency and money in the proper perspective. First, analyzing new currency spawned by financial technology requires separating ourselves from the emotions.  In the American black community, the first cool dude with swag that can push the right emotional buttons on a people who are over-indexed on emotions will win the day, at least temporarily. Sheep, as Jim Cramer is fond of saying, get slaughtered.

Second, analyzing currency should come with the realization that we understand little about currency, money, markets, and economics. We conflate markets with consumerism and that is a mistake. Consumerist activity is low hanging fruit; easy to grasp because we are quick to meet our emotional needs with a gift bag. Meanwhile, those pushing Bitcoin on us didn’t have a clue as to the economic justifications for the increase. They asked us to view crypto the way we go out and buy houses and cars: come on down because the price is right. That kind of thinking, like the show, is corny.

Currency, whether digital or real, contains a message about an underlying economy. Cryptocurrency has no underlying economy. It cannot transmit messages about the value of an underlying economy because there is no underlying economy to begin with. The realities of an underlying economy keep a currency in check with market transactions providing consumers and producers with information as to how well the economy is doing and whether it is viable enough to project the “good faith” backing of a currency. Crypto does not have an underlying economy. While more vendors are using it, its use is nowhere near the use of real currencies.

For black people to push crypto on poor black people was abominable.

What the high price for a Bitcoin tells us is that if an underlying economy is developed, it will not be a world where the poor will be allowed to play. The price is transmitting a prediction about exclusivity. For example, urban cores like Atlanta, New York, and San Francisco are pricing the poor and middle class out of housing and other amenities. Why not develop a currency that reflects that new reality? Has it ever really been about inclusion or does the reality reflect exclusion?

Collectivism dampens your ability to be a high-value individual

As a libation-centered population, members of the African Diaspora tend to call on memories of those who have passed on when assessing our reality. Lineage is important because it helps identify and locate family members that can contribute to the economic and financial needs of individuals or households under duress. Blacks, in my opinion, take the story of Jesus’ sermon on the mountain more seriously than other ethnic groups; probably too seriously. Collectivism is so incorporated into the DNA of blacks in America that blacks focus too much on what they can allegedly do as a group versus as individuals.

For the person with mouths to feed, can she say that enough economic and financial benefits have flowed through the black population to the extent that she can say that collective political and economic action has created wealth or opportunities to pursue wealth?

Collectivism is a political or economic theory advocating collective control especially over the means of production and distribution.  Emphasis is placed on the collective versus individual action or identity. In the black population, the framework for collectivism has been passed down by ancestors through a prism of historical pain and economic and political suffering. This view of the world lays at the base of black group reliance with the nuclear family at the core of this reliance.  It is a view that has sustained us but is it a view upon which blacks can thrive? Given the historical wealth position of the black population, the answer is no. We may have a people sharing collective pain and suffering but we are not a people optimizing a collected resource.

One solution may be for the individual to use lineage as a backbone or spine for a network where each individual along the spine is a plugged-in, high-value information node. Rather than sit at the family table drawing down limited resources by virtue of your last name, each family member is expected to learn a trade or skill, develop and plug into additional networks and labor markets, use income and information garnered to sustain herself, and share excess income and information with her lineage.

This may sound like collectivism, but the difference is the emphasis on each node being individualistic. Each node follows it own value system and manages its resources as it sees fit without interference from other family members. The goal should be to avoid being monolithic in thinking and approach to political, economic, and social events. By attaining true diversity in thought and action, each node along the lineage conduit helps bring true diversity to their populations.

As new information is brought into the population, and individuals increase their social, political, economic wealth, there is greater incentive to procure more knowledge and create resources around which a real community can be built.  As I shared in an earlier blog, blacks are part of a population, not a community. Blacks have no resource or substantive economic activity that they control that provides residuals off of which they can survive and thrive. To attain community status, more members of the population must engage in outside-the-box thinking and this involves encouraging more free thought which is better derived via more individuality.

Free thought and individuality creates the high-value information human nodes that the black population needs.

For Blacks, government is god

Every Monday and Wednesday night I allow myself a little political entertainment by tuning into YouTube and watching Yvette Carnell, founder and editor of Breaking Brown.com. Ms Carnell brings a passion and data driven analysis to political and social events impacting descendants of slaves brought to the United States from Africa. Ms Carnell “keeps it real” about the economic plight of black Americans and is especially scathing of those who fail to view politics as an avenue for obtaining resources, particularly capital, as reparations for the kidnapping and enslavement of Africans and the lingering effects that slavery has on the present members of the African Diaspora brought to America.

Where Ms Carnell loses me is when she proposes that government is the only option for righting wrongs perpetrated by the holders of capital on slaves imported from Africa. Government, as I interpret Ms Carnell, should bear the burden of providing the descendants of African slaves with treatment equal to those received by whites who have certain privileges available to them as a result of their lineage. Ms Carnell rejects talk of black American self-reliance arguing cogently that black American descendant of slaves brought from Africa are at a severe disadvantage because it was never the intent of government to extend sufficient capital in the direction of blacks so that they could thrive in America.

Ms Carnell’s 43,000 YouTube subscribers for the most part agree with her and I know plenty of people, some of them friends, who would sympathize with her position. Government has been the source of oppressive tactics and strategies against blacks in America for centuries. Some blacks also consider government the source of positive change in American society, from the banning of the separate but equal doctrine for schools, common carriers, and other public facilities, to extending universal suffrage to black voters in the South. So while blacks in America perceive the real world as one of pain and suffering, government, the entity that has and still does keep a boot on the throats of blacks, is also viewed as a very present help in trouble.

But rather than god, what if blacks treated government as a protection agency option? I came across this phrase when I read The Sovereign Individual by James Dale Davidson and Lord William Rees-Mogg.  The authors, proponents of a movement from onerous customs and tax districts like the United States, described various governance structures for occupied territories and how modern digital communications technology could enable individuals to either live outside of the barriers of traditional governments or carve out their own sovereign niches within them.

Admittedly the problem with the approach of The Sovereign Individual is the level of capital that one would need in order to exercise the type of autonomy described in the book. It takes a great degree of capital to negotiate the occupancy of a physical space where the individual doesn’t pay traditional taxes; where within carved out areas the individual provides for their own police services and can exercise the right to legally exclude anyone who does not fit their criteria of community.

The biggest problem I believe is mindset. There is a malaise within the black population; a narrative that any attempts at freedom would be met by actions similar to those that took place in Tulsa, Oklahoma in 1921. Between 31 May and 1 June 1921, a white mob attacked the black American community of Greenwood, a thriving community within Tulsa known as “The Black Wall Street.” Where conversations arise about furthering black economic empowerment, naysayers raise their heads citing the egregious state actions that occurred in Tulsa that Memorial Day weekend.  Almost 100 years after the military and terrorist attack on Greenwood, the survivors of the attack have not been compensated. Petitions to the government have resulted in dedication of a park and some scholarships for descendants. Can anyone say that the State has dome right by its black American parishioners? Can blacks afford to use the memories of these behaviors to prohibit them from getting out of State-sponsored hell?

For blacks, government is god. This god is not benevolent and sooner or later, the church service has to end.

It’s not about suppressing black votes, Mr Booker. It’s about cutting off the Democratic Party’s meal ticket

Senator Cory Booker, Democrat of New Jersey, today raised an issue concerning Steve Bannon’s attempts to target black voters during the November 2016 elections. In testimony before the U.S. Senate Committee on the Judiciary, Cambridge Analytica’s former director of research testified that Steve Bannon, former assistant to President Donald J Trump, sought to use data harvested by Cambridge Analytica as part of a campaign to discourage blacks from voting. Mr Booker wants us to ignore the possibility that more blacks are turning away from his party.

The reason for the butthurt over Mr Bannon’s alleged targeting of blacks has nothing to do with black voter suffrage per se. Mr Booker’s issue is that if Mr Bannon or others like him are successful in steering blacks either away from the polls or worse yet to other candidates, then the Democratic Party would be in serious trouble.

According to data compiled by BlackDemographics.com, a significant portion of the black population is affiliated with the Democratic Party. In 2012, 76% of the black population were affiliated with the Democratic Party, either calling themselves Democrats or aligning with Democratic principles or values. You would have to go back to 1968 to see the affiliation percentage exceed 90% (93%).

As for the percentage of blacks who vote for the Democratic candidate, between 1936 and 2012 that percentage was equal to or greater than 90% on four occasions; in the years 1964, 2000, 2008, and 2012. There are a couple data points that may be concerning Mr Booker and his colleagues. While a couple data points do not make a trend, they should be something to keep one’s eye on.

Back in 2000, seven percent of the black population affiliated themselves with the Republican Party. By 2004, that percentage more than doubled to 15%. A priori, that jump may have had to do with the U.S. involvement in a two-front war in the Middle East and George W. Bush’s ability to sell the U.S. on his ability to prosecute the war. Also, Mr Bush attempted to stimulate the economy during the 2001 to 2003 period via tax cuts and the one-time issue of checks to households.

By 2008, however, the portion of the black populace affiliated with the Republican Party fell to four percent, but the portion of blacks affiliated with “independent” climbed to 20%. Apparently, more blacks wanted to hedge against the probability of being on the losing side of history. Vote for the first black president without moving into the Democratic playpen. By 2012, black Republicans went back home with 16% of the black population affiliating with the Republicans.

What may be underlying these numbers is a change of heart and direction on the part of younger blacks when it comes to the Democratic Party. According to NPR, black voter turnout fell from 66.6% of blacks in 2012 to 59.6% of blacks in 2016. Over four million black voters stayed home and according to the NPR report part of the reason is that a growing number of blacks no longer believe they have a home in the Democratic Party. Blacks may no longer see voting as the best way to change their economic or social plight as the population still sees unemployment rates higher than whites and neighborhoods that are run down and facing abandonment.

No, Mr Booker. It appears that something more substantive is going on to turn away blacks from the poll other than a sponsored ad running on the right-hand side of a person’s Facebook page.