Why the French Lost North America and Why Washington Eventually Will Too

Why the French Lost North America and Why Washington Eventually Will Too

My kids aren’t in the State Indoctrination Camps, we homeschool. I teach world history to homeschoolers every Friday as part of a local tutorial. I love history and firmly believe that even though history doesn’t repeat, it certainly rhymes. Which brings me to my point. Today I was teaching the future leaders of the free world about The French and Indian War. The book I use as a guide doesn’t give the real reason why the French lost that war, and were driven from the continent. It wasn’t because they were bad soldiers or bad military tacticians. They lost because their leaders were out of touch with reality. Louis XIV was a hard-working, brilliant dictator. Even though he began to sow the seeds of France’s destruction with the construction of Versailles by the blood and wealth of his subjects, nevertheless, he was available and attentive to the state of his country. He may not have cared much about his people, but he at least knew of their suffering.

In contrast, Louis XV was a lazy man. His father did not care for him much. As the leader of France he was hated. He died fairly young, but not until he had squandered most of what his father had built in the New World. When he died of small pox, they covered him in lyme, and chucked him in a hole in the middle of the night. While alive, he was suppose to be leading his people in The French and Indian War. Instead, he was absent, aloof, and uncaring concerning the plight of his people. While William Pitt, the Prime Minister of England, with whom he was at war, was making sure his men had money, weapons, food, and supplies to fight the costly war, Louis was lying in the lap of luxury disconnected from the reality of the day to day existence of his citizenry and soldiers. French soldiers didn’t lose because they were cowards, but because they were cold and hungry. French citizens weren’t hungry because they were lazy, but because they were being legally plundered. The French lost North America in the end because of corrupt and aloof leadership

Does this situation sound familiar? While I am thinking of the broader political class, President Obama is a great modern example of this type of clueless, aloof leadership. Many have called him “Vacationer and Chief”. While our soldiers have shed their blood in unjust foreign wars, he appears regularly to be playing more golf than governing. And when he is governing he is busy catering to lobbyists for green energy, attempting to destroy coal power plants and vetoing oil pipelines knowing full well that in the end these actions will drive up the cost of energy for his citizens. Like Louis XV, he doesn’t really care.. Republican leaders are just as aloof and clueless, just on a whole host of different big business lobby driven issues. Republicans are at war with their own conservative and libertarian base, choosing rather to cozy up to the Wall Street and the Country Club wing of their party. Passing omnibus spending bills, fully funding Amnesty, refusing to audit the Federal Reserve, bailing out “to big to fail” banks and car companies, etc. The political class is aloof and out of touch. While food prices go up and wages go down, they publish phony jobs numbers, knowing full well that the jobs being created are either lower wage, or part time, or both. While companies like Hewlett Packard fire 50,000 employees in order to create reserve cash to buy back their own stocks, driving the stock price up, and amassing huge bonuses for their executives. Congress and the President turn a blind eye to such unethical practices because, of course, this pushes up the stock market and allows them to take credit for a fake “economic recovery” so they can get re-elected and continue plundering the American people. Meanwhile, the rich get richer, misguided youth join Occupy Wall Street. Mandatory Minimum Wage movements gain steam. Tea Parties erupt. Libertarians start having a moment. What do all these things have in common? They are all anti-elite-political class movements. Let’s go back to France and Louis XV for a moment.

What happened after his death? The Enlightenment, “The Bloody Revolution”, and the end of Aristocracy in France. What fills the void when elitist, corrupt leaders lose legitimacy in the eyes of their citizens? Before we answer that, we need to ask, “What causes elitist, corrupt leaders to lose legitimacy?” Economic disruption, brought on by the actions and policies of those leaders usually does the trick. When Marie Antoinette supposedly said, “Let them eat cake”, France was in the middle of a desperate economic disruption caused by the constant wars, taxation, and luxuries enjoyed by the Aristocracy. What fills the void left by elitist, corrupt political leaders? Usually populist movements that claim the noble goal of returning the nation to it’s former glory, and promising never to allow a corrupt elitists political class to rule again. Think of Germany pre-World War II. The Treaty of Versailles had stripped Germany of her former glory. Years of punitive damages inflicted by the victors of World War I stunted Germany’s ability to economically recover. An unjust peace left hundreds of thousands of hungry, unemployed, Germans. This major economic disruption toppled the Weidmar Democracy, and led to the rise of the Nazi Party.

Russia at the turn of the 20th century was in a similar state. Years of aloof, corrupt leadership led to constant foreign wars, high taxation, a virtual caste system that was impossible to break out of, and an extremely prejudicial justice system where the poor simply could not get justice. What filled this gap? A populist movement known as the Bolsheviks came to power through revolution, and every member of the aristocracy that didn’t run was summarily executed. This began 70 plus years of rule by communism, which featured millions of deaths, via starvation, execution, Gulags, etc. Russia today is in the middle of such a movement. What is Vladmir Putin trying to accomplish? He is trying to return Russia to its former glory. This Ukrainian business and the Crimean secession is exactly the type of movement I have been describing. Russia needed a leader. A strong, charismatic figure arises and wins the hearts and imaginations of many Russians. Especially older Russians that remember, with nostalgia, Russia’s former place on the world stage. Russia is currently eyeing their former Baltic states as “economic partners”. But the Baltic nations know this partnership is an “offer they can’t refuse”, to quote Vito Corleone.

The U.S. is now showing signs of this process as well. We’ve had one major economic disruption after another since the 1970’s. All caused by the policies of a corrupt and aloof leadership that promise more than they can deliver and then print more money to cover their spending habits. Because we are the reserve currency holder in the world, we are able to print up a fresh batch of cash and infuse it into our economy. But all we are doing is kicking the can down the road a bit. Debt does not build wealth. The debtor is always a slave to the lender. The piper will be paid. Economic disruption is coming in the near future. With interest rates at zero and quantitative easing not working anymore, what’s the plan this time around? We have painted ourselves into a corner with no way out. These populist movements will gain strength. Eventually, Washington, because of aloof, corrupt leadership will lose it’s legitimacy. It is the way of history. Sure as rain, as we say in the south. What kind of movement will fill the void? This question remains unanswered. I just hope the Libertarian moment, becomes a Libertarian day. Of course, as the Evangelical Libertarian, I know that, “the king’s heart is a stream of water in the hand of the Lord; he turns it wherever he will.” (Proverbs 21:1) My prayer is that the people of this wonderful land will peacefully return to the God of their fathers, not through government coercion, but because of the great love that He has shown to us in sending His own Son to die in our place. It is only the Gospel that can bring real peace. It must start between God and man. But when internal peace takes hold in the hearts of men, and the Holy Spirit permeates our homes and hearths, national peace will soon follow. That’s a populist movement to get excited about!

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Soli Deo Gloria

Peter Schiff from 2006 and Today…… Will We Listen?

Peter Schiff from 2006 and Today…… Will We Listen?

Peter Schiff in 2006, nobody listened. Watch the clips in sequence.

 

Peter Schiff in 2014, will we listen this time around?

Jim Rickards Predicts QE4 and IMF Monetary Takeover in 2016

Before you say, “This guy must be a loon, no way.” Jim Rickards is a long time investment banker/Hedge Fund manager, who the U.S. Intelligence community uses to map out financial war games scenarios with. He’s no slouch. More than that, he’s been right on target over the last few years that last few years. I don’t know about y’all, but I’m taking his advice. Listen to Paul Krugman and the WSJ if you want, but tell me again what they were saying in 2007? or 2006? or 2004? or 1998? or 1991? or 1987? Oh yeah, I remember, they were dead wrong.

Jim Rickards Predicting QE4 and IMF World Monetary Takeover *Video*

The Death of the Dollar is Coming

Death of the Dollar

Over the last week the Russian Ruble has crashed nearly 40%. Due to European and American sanctions, Russia is unable to do the things economically necessary to right the ship. In step the Chinese who have a bi-lateral currency agreement with Russia, partially created to be able to help each other in currency crisis scenarios.  China and Russia are also part of a larger currency bloc called BRICS. The BRICS nations are Brazil, India, China, and South Africa. These nations have come together to introduced a new currency, and to open development banks in Africa and in other parts of the world in order to encourage economic growth and trade. Incidentally, the GDP of these 5 nations is currently greater than the GDP of the G7 nations. China has the second largest economy in the World. Why am I telling you all this? Because, “What is good for the goose is good for the gander”, as my grandmother used to say. Translated, we better be ready to receive the same treatment from them in the future. Or as the Bible says, “What you sow, that shall you also reap”. (Gal 6:7b)

When the U.S. throws its weight around financially through devastating economic sanctions, it causes other nations to take notice and wonder if they are next. They begin to look for ways to secure their peoples financial future. In order to protect themselves, they begin to make plans to use a currency other than the dollar. If the U.S. cannot restrict their trade through sanctions made possible by the dollar being the reserve currency, they don’t have to worry about U.S. sanctions, and they are then free to conduct business as they please. This is exactly what the BRICS nations are working to try and do, de-dollarize the world. This would have massive economic effects on the U.S. and would put us in a position to have the same sanctions leveled against us in the future. I’m not excusing Russian incursions into the Ukraine. I’m not a Chinese sympathizer. I think the Iranian government is loony tunes. But, when you sanction a nation, restrict their trade, and cause them to have to manipulate their currency and interest rates in order to stay afloat, you are hurting not the government as much as the people. Russia is not about to change leaders. But the Russian people, in a single week, saw 40% of their wealth evaporate partly due to U.S. policy. How would you feel? Would you love America and seek to emulate her? You would not. You would think she was evil and seek to distance yourself from her. Your friends and allies would feel the same way.  And that is how global sentiment is changed. Believe it or not, some of the people groups in the world that hate us have legitimate reasons. They hate us because we have done great harm to them personally. We have starved their children so that we can say we “look strong” in the eyes of some petty dictator. Has this posture worked in the past? Take Cuba for instance. 90 miles from our coast and we didn’t talk to them for nearly 50 years!? Did sanctions helped topple Fidel Castro? No, they allowed Castro to blame the U.S. for the poverty of his people. We likely prolonged his rule, and pushed him further into the arms of our then enemy, the Soviet Union. Why could we not have talked with them? Traded with them? Interacted with them? Been an example to them? I think President Obama is one of the most inept leaders our nation has ever had. But I personally support normalizing relations with Cuba. My enemies never listen to me, but with my friends, I have influence. That’s partly what friendship is, and friendship is always more profitable (not just economically) than war.

The fact is, the dollar as the world reserve currency has been a golden goose for the U.S.. We could print all the dollars we want and export them to countries like China in currency and bond swaps. We’ve been able to paper over all our economic problems and not worry about hyper-inflation because we could export those dollars. Billions of U.S. dollars are held in nations all over the world because they have to have them in order to buy oil and function as trading partners. But when we act like a globally bully, we drive the nations of the world to begin to consider safe guarding themselves from us and our financial shenanigans. I fear we are doing what the cottager did in Aesop’s Fable. We are killing the goose that lays the golden egg. We should have chosen friendship and good will. Because of our strong armed tactics there is a day coming, sooner than most Americans think, when the east will throw off the dollar as a reserve currency. China has already stopped buying our bonds. It is likely in 2015 that we will see the Chinese Yuan be included in the International Monetary Fund’s Special Drawing Rights (SDR) currency basket. It is also likely that the U.S. will lose its veto power at the IMF very soon as well. The world has grown tired of purchasing our debt, being punished by our currency manipulation, and our other financial games. Be wise and position yourself and your family accordingly my friends. The roller coaster you are seeing in the markets right now is only the beginning. Financial crisis cometh. And it is by our own hand.

 

Proverbs 22:3

The prudent sees danger and hides himself, but the simple go on and suffer for it.

For further reading on the subject of the IMF, Russia, and China’s position on a global currency and de-dollarization. Brandon Smith’s articles on the subject are indispensable.

IMF Now Ready to Slam the Door on the U.S. and the Dollar by Brandon Smith via Alt-Market blog

Or watch Jim Rickards allude to the IMF taking over the monetary system here

Jim Rickards Predicts QE4 and an IMF Takeover of the Monetary System