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Black Markets and Local Supplies

Written by Gary North on March 7, 2012

What is a black market. It is defined as a market for goods that have been placed under controls by the government.

Central banks can create digital money. But we cannot eat digital money.

Governments cannot create wealth. They can restrict its sale for political purposes. This leads to the creation of black markets.

The harder the government squeezes the public, the more intricate the rebellion becomes.

How is the war on drugs working?

Only when a considerable majority of a populace can be convinced of the inherent immoral nature of an illicit item can its trade finally be squelched. During any attempt to outlaw a form of commerce, a steady stream of informants convinced of their service to the “greater good” is required for success. Dishonorable governments, therefore, do not usually engage in direct confrontation with black markets. Instead, they seek to encourage the public to view trade outside mainstream legal standards as “taboo”. They must condition us to react with guilt or misplaced righteousness in the face of black market activity, and associate its conduct as dangerous and destructive to the community, turning citizens into an appendage of the bureaucratic eye.

But, what happens when black markets, due to calamity, become a pillar of survival for a society? What happens when the mainstream economy no longer meets the available demand? What happens when this condition has been deliberately engineered by the power structure to hasten cultural desperation and dependence?

In this event, black markets not only sustain a nation through times of weakness, but they also become a form of revolution; a method for fighting back against the centralization of oppressive oligarchies and diminishing their ability to bottleneck important resources. Black markets are a means of fighting back, and are as important as any weapon in the battle for liberty. Here are just a few reasons why such organizational actions may be required in the near future…

If a person does not want to participate in a black market, he would be wise to build up an inventory of goods that could become scarce under a regime in which price controls have been imposed. Americans saw this in 1971-73. We will likely see it again.

I was recently walking through the parking lot of a grocery store and ran into a group of women huddled intently around the back of a mini-van. One of the women was reaching into a cooler and handing out glass containers filled with milk. I approached to ask if she was selling raw milk, and if so, how much was she charging. Of course, they turned startled and wide eyed as if I had just stumbled upon their secret opium ring. Somehow it had slipped my mind how ferocious the FDA has become when tracking down raw milk producers. The fact that these women were absolutely terrified of being caught with something as innocuous as MILK was disturbing to me. How could we as a society allow this insanity on the part of our government to continue?

That moment reminded me of the utter irrelevance of petty law, as well as the determination of human beings to defy such law.

The Orwellian hammer has been thrust in the face of those who trade in raw milk, organic produce, and herbal supplements, while small businesses are annihilated by government dues and red tape.

This is why supply lines need to be local. In my area, I can buy raw milk and eggs produced by cage-free chickens. But if two suppliers are forced out of business, this will no longer be possible.

Know your local farmer!

A “black market” is only a trade dynamic that the government disapproves of, and the government disapproves of most things these days. Frankly, its time to stop worrying about what Washington D.C. consents to. They have unfailingly demonstrated through rhetoric and action that they are not interested in the fiscal or social health of this nation, and so, we must take matters into our own hands.

Price controls restrict supplies. To the extent that you support these alternative supply lines now, you create a face-to-face network locally.

Pay a little more for your produce at a farmers’ market. It’s good food, and it keep suppliers in business.

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4 thoughts on “Black Markets and Local Supplies


    Sentences too long. Words too long (polysyllabic.) Reminds me of reading German with its one-sentence paragraphs.

    I suggest you re-read “The Art of Readable Writing” by Rudolph Flesch, Harper & Brothers, 1949, New York.

  2. spooky_t says:

    I'd, humbly, suggest that you worry less about sentence structure and more about content. DUH!

  3. Great article and true to form… Black markets have been around for eons and will continue to be so. When the average citizen has no control of what the gov is doing then they will take matters into their own hands in order to survive.
    I for one plan to survive!

  4. I guess he used a lot of big words you didn't learn in government school.