[galadriel]

In real world, your neighbor is the local warlord, and you cannot possibly summon enough amount of army to counter his army. The only guy who can stop him is the guy with bigger army somewhere in capital city, and he couldn't care less about you. Welcome to feudalism. History is rife with the system you are proposing, and it did not went well for humanity.

[snitko]

Can you summon enough amount of army to battle the global warlord which is the government?

[galadriel]

Yes, if I can convince other, I can summon army of 100 million voters who can change the system overnight (well, once every 2 years) and make whoever they want their global warlord to be. The global warlord works for them, and not the other way round.

The fact is, people are happy enough with the system as it is, and they do vote out the "mafia thug" if he acts particularly bad. This global warlord requires money to maintain its strength and most people are more than happy to pay their share of taxes.

[snitko]

So wouldn't it be much easier to convince 100 people to act against your local warlord than 1 million people to act against the global warlord?

[galadriel]

It is easier to control one entity that has monopoly over force and can be ruled by reason, than to control gazzillion small forces which are accountable to no-one. We also have these local warlords that you speak of. They are called the police and the mayor.

[snitko]

How can it be easier to control an entity that has a monopoly over force and that requires you to convince 1 million people instead of 100 for any changes to happen?

Also, ruled by reason, really? Same reason that helped it decide to spy on all people and kill millions in bloody wars all over the globe? I mean, it's not just the US. If you look at history, no criminal organization, even the most bloodiest and craziest one, can compete with an average government in how many people it killed, tortured or imprisoned.

[galadriel]

The Mongols killed more people as fraction of living population that any government. The Mongols were also more close to your ideals of anarchy. May I suggest you to brush up your history?

Yes, ruled by reason. The same reason that forces them to withdraw from wars, same reason that checks military spending to less than 3% of human efforts, the same reason that maintains property rights for people to function, the same reason that can channel together forces to plant 200 million plants to stop the dust bowl .... and I can parrot on and on. Is the government perfect? Hardly, but it is in every way superior to lack of government, where my ability to maintain my rights depend on how big armies I can summon on my side.

Your tiny force of hundred cannot lead to change of any reasonable measure because there would be a person with an army of million. Always has been, always will be. I am not making stuff up just to argue with you. Feudalism is exactly the result of model you propose. When local security forces run by private party are supposed to enforce whatever any one pays them, it is just in their own benefit to merge together to form bigger force ... which goes on till the ultimate biggest force is run by a King at the center, and small forces run by local security guy. Now unlike trust busting which the government (ruled by citizens) can undertake, there is no one in your utopia who can stop security agencies from forming cartel. Again, brush up your English history (Or Russian history for that matter). When rules depends on who has more money in his pocket, ECON 101 rationale follows, forming ever larger security force accountable to no-one but itself ... enforcing not the rule of law, but whatever whims it wants to.