Rand Paul The Only Non-Dystopian Candidate

Rand Paul The Only Non-Dystopian Candidate

Have you seen or read The Giver? The people don’t see color. Everyone is all the same. The have no choices. Bernie Sanders is The Giver. He seeks to limit choice. To make everyone the same. He believes that he has the wisdom to decide for you.

On that note, have you seen or read Divergent? Bernie Sanders is an Erudite. He believes he knows what is best what for you. What you should do. How you should live. How much things should cost etc, etc.

How about the Hunger Games? He is part of the Capitol. He believes that all monies and goods should be distributed through Washington DC. The Capitol decides who gets grants for education, farm subsidies, taxation levels etc. Everything the people make and produce goes there and the scraps are divided up among those who please and entertain the Capitol.

Bernie is not the only dystopian bad guy running this election season. Almost all of them fit the mold one way or another. I am just surprised that a group of people who have grown up reading dystopian novels and watching dystopian movies have not learned the moral lessons contained in them.

There is only one real candidate that is trying to end our 1984 like perpetual wars. Only one candidate trying end our 1984 like “Big Brother” domestic spying. Only one candidate committed to ending our massive over spending and debt problem. Only one candidate trying to end the “Pigs” (see Animal Farm) ability to change the rules and live differently from the other animals (citizens) on the farm. Only one candidate that has a consistent close to 100% Constitutional rating. Only one candidate that believes you are the answer to what ails this nation. Who wants plans by the many across this great land not plans by the few in Washington. One. There is no refuting that. There is only one non-dystopian candidate. So if you are a Millennial, Gen X’er or Boomer, vote for the Hero of the books. The one trying to take down the Capitol. The one trying to bring peace. The one trying to give liberty back to the people. That is Rand Paul and only Rand Paul.

“Patiently” Killing Capitalism and America

“Patiently” Killing Capitalism and America

Wednesday morning I checked the DJIA, and it was down just over triple digits. It stayed underwater all the way through lunch too. Then, miraculously, about 1:30 pm, it took off like a rocket, swinging 350 pts to the upside, closing over 200 pts in the black. Now I knew what caused it. I keep up with such things. The FOMC (The Fed) had just released their vague do nothing statement. They removed one measly little word. They removed the word, “patient”, meaning that they want us to think that they are going to begin to increase interest rates in the near future. This was meant to signal that all is right with the economy and that there is nothing but sunny spring days and tiptoeing through the tulips as far as the eye can see into the future for the U.S. economy. Is this capitalism? Should markets be hanging on the every word of unelected bankers about whether or not they will arbitrarily raise interest rates? Why does the Fed play such a large role in the economy? Because free markets are dead in America, that’s why.

Gone are the days when we actually looked at hard data. You know, things like the labor participation rate. Instead of looking at the phony government numbers that are built on new applications for unemployment insurance (which tell us nothing) , why not look at how many available workers are working. This tells us a far greater tale, and the story is bleak. Near all-time lows. Great Depression era lows.   Or, how about they tell us how many of these new jobs being created are minimum wage and/or part time. Truth be told, we know for a fact that about 90% of the good full time jobs created since 2010 were in the oil fields of North Dakota and Texas. We also know that oil rig leases are down, and that shale producers cannot be profitable at 50.00 a barrel oil, and that lay-offs have already begun. We know that the fourth quarter 2014 Christmas sales were abysmal, and that first quarter numbers are down as well in retail sales, wholesale orders, housing, commodities (the stuff it takes to make stuff), etc. We also know that the big jump in GDP in the third quarter last year were Obamacare costs coming online in the market. In other words, all that new money changing hands was coming out of workers pockets and going into state and federal healthcare exchanges. So yes, Americans did spend more…. on healthcare, not cars, tv’s, and restaurants. No magical Keynesian aggregate spending boost. Just plain old fashion inflation. The kind not reported by the government inflation numbers, which exclude food, energy, healthcare, and everything else in the average American’s home budget.

If we were living in a real economy, we would see wages rise against inflation, not fall, as they have done for 40 years now. If we were living in a real economy, the free market would set the “rent on money” (interest rates) according to the rules of competition. Savers would be able to save and earn a decent return for the lease of their capital (interest on savings). Banks would loan out the money that they receive through deposits. Banks would have strict credit standards so as not to lose their depositors money in bad loans. Banks would go out of business when they were reckless, and businesses would too. The market would clear bad debts, reallocate capital more efficiently, and actually recover from bad decisions. Unlike today, where we kick the can down the road for our children to pay the piper. Where are the adults? Where are the responsible men and women in the halls of power? Drunk on it likely. Neutered. To busy scratching the itch of some group or another. Having cocktail parties joking about us sloped forehead, knuckle dragging, morons out here in the real world paying the price for their cowardice and avarice.

When markets swing violently on the words of Janet Yellen and a private banking cartel, know that the end is nigh. Know that capitalism is dead. And that it took government collusion with those bankers to kill it. So, when your family suffers in the near future, blame the whole lot of them. Democrats and Republicans alike. Politicians, bankers, and lobbyists. And if we get the opportunity to make a change, choose individual freedom and free markets over the “fatal conceit” of an economy planned in the back rooms of Congress, the Treasury Department, and international banks. Remember, that it was individuals unfettered and far removed from the King of England that allowed the colonies of the New World to become prosperous. Same for Australia. Criminals given the ability to work, own land, and save, far removed from the British Parliament and it’s many laws and taxes, were able to escape poverty and even flourish in extremely harsh environment. 50 years ago, Hong Kong and Singapore were impoverished nations, yet today they are the freest and most prosperous nations in the world. Just in case you still thought this was the land of the free and the home of the brave. We are the land of the 18th most-free, and bravery, if Washington is any reflection, is all but lost.

The Israel of God and American Foreign Policy

The Israel of God and American Foreign Policy

Social media has been ablaze over the last couple of days regarding Israeli Prime Minister, Benjamin Netanyahu’s speech to the U.S. Congress. I’m not going to address the content of his speech. To be honest, I didn’t listen to it or read the transcripts. I’ve glanced through a few articles, but even those I didn’t read with an eye of criticism. I was just taking in information. I’ll let political pundits fight over whether we are too hawkish or too dovish towards Iran. I have an opinion, but I’ll save it for another day. I want to address something that concerns me much more than momentary arguments over foreign policy. I would like to address Christians, specifically from the Bible, on two separate, but inter-connected questions. The first question I would like to attempt to answer is whether or not the current nation state known as Israel today is “the Israel of God”. In other words, is the current geographic nation-state that was established in the early 1950’s the same entity as the Biblical Israel?

The children of Israel, the descendants of the seed of Abraham, were first formed into a nation under Moses. They were given a 3 pronged law. A moral law to govern their behavior, which we call, “The Ten Commandments”.  A ceremonial law to instruct them in religious worship. And a civil law to instruct them in crime, punishment, and civil organization. They, as a people, were bound together in a single covenant with God. He was their God, and they were His people, the sheep of His pasture.** This covenant was preceded by the covenant and promises of Abraham (as referenced above), and Noah. It preceded a further development with David, and finally the coming of Jesus Christ. Jesus’ appearance is the apex of God’s covenant dealings with men, and it fulfilled every aspect of all His covenant promises, so that Paul could affirm to the Church at Corinth that, “all the promises of God find their yes in Him.” (2 Corinthians 1:20) While in the Old Testament, God’s people were tied to physical ceremony, land, and heritage. The New Testament drastically improves and expands the borders of God’s Israel. Jesus comes and proclaims peace to all men, first, to the Jews, but then to the rest of the world as well. And all that believe on Jesus Christ are brought into a better covenant, with better promises. This is an important point. Not a different covenant with different promises, but a better covenant with better promises. Jesus improved upon the Old Covenant, he abolished the national and ethnic distinction that set his Old Covenant people apart as separate and distinct, and expanded the Israel of God to include Gentiles. Israel, according to Scripture is no longer a small geographic state in the middle east, but is now an international empire that will one day rule the entire globe. There are two passages in the New Testament that I would like to point to as evidence that the way I am interpreting the Gospel’s effect on our understanding of Israel is correct. The first has to do with the way Paul interprets the promise given to Abraham concerning the “land”. The second will be Paul discussing the inclusion of Gentiles into the Commonwealth of Israel.

Romans 4:13-18

[13] For the promise to Abraham and his offspring that he would be heir of the world did not come through the law but through the righteousness of faith. [14] For if it is the adherents of the law who are to be the heirs, faith is null and the promise is void. [15] For the law brings wrath, but where there is no law there is no transgression. [16] That is why it depends on faith, in order that the promise may rest on grace and be guaranteed to all his offspring—not only to the adherent of the law but also to the one who shares the faith of Abraham, who is the father of us all, [17] as it is written, “I have made you the father of many nations”—in the presence of the God in whom he believed, who gives life to the dead and calls into existence the things that do not exist. [18] In hope he believed against hope, that he should become the father of many nations, as he had been told, “So shall your offspring be.”

This is a wonderful passage with more than one use for our purposes. First we see the great Gospel promise of inclusion. How would Abraham become a blessing to the whole world? How would the promised hope of salvation be brought to the world of men? Abraham would have a son, not Isaac, a greater than Isaac, Jesus Christ. (Galatians 3:16) But more importantly for our discussion is how Paul interprets the promise of the land. Verse 13 says, “For the promise to Abraham and his offspring that he would be heir of the world did not come through the law but through the righteousness of faith.” Wait. When did God promise Abraham that he would inherit the entire earth? He didn’t. Paul rightly sees that the covenant promise of “the promised land” has been expanded because it was too small to fit with giant nature of the person of Jesus Christ, the King of Kings, and Lord of all Lords. In giving His people the world, that tiny little dot in North Africa between two rivers is also included. So God is not breaking His promise to His people, He is giving them more. They are heirs to the world. This shows an expanded view of territory known as Israel, of which Jesus is King.

Now for the big discussion. One that may be difficult for you to receive at first, but I ask you to read the next passage very carefully. The Israel of God is made up now of both ethnic Jews and ethnic Gentiles… there is no distinction.

Ephesians 2:11-21

[11] Therefore remember that at one time you Gentiles in the flesh, called “the uncircumcision” by what is called the circumcision, which is made in the flesh by hands—[12] remember that you were at that time separated from Christ, alienated from the commonwealth of Israel and strangers to the covenants of promise, having no hope and without God in the world. [13] But now in Christ Jesus you who once were far off have been brought near by the blood of Christ. [14] For he himself is our peace, who has made us both one and has broken down in his flesh the dividing wall of hostility [15] by abolishing the law of commandments expressed in ordinances, that he might create in himself one new man in place of the two, so making peace, [16] and might reconcile us both to God in one body through the cross, thereby killing the hostility. [17] And he came and preached peace to you who were far off and peace to those who were near. [18] For through him we both have access in one Spirit to the Father. [19] So then you are no longer strangers and aliens, but you are fellow citizens with the saints and members of the household of God, [20] built on the foundation of the apostles and prophets, Christ Jesus himself being the cornerstone, [21] in whom the whole structure, being joined together, grows into a holy temple in the Lord.

This passage is written to a Gentile Church. Paul wants them to clearly understand their place before God in the New Covenant. He starts out by telling them that in the past, or, “at one time” “they had been separated from Christ”. That they had been “alienated from the commonwealth of Israel”. Note that phrase, “the commonwealth of Israel”. It refers to a specific political economy. And that they had been “strangers to the covenants of promise”. But now their relationship with the Father had changed.  And not just with the Father, but with the Father’s people too. The Jews, the commonwealth, covenant people of God, had regulations that separated them from everyone else. But Jesus “himself is our peace, who made us both one and has broken down in His flesh the dividing wall of hostility by abolishing the law of commandments expressed in ordinances, that He might create in himself one new man in the place of two, so making peace, and might reconcile us both to God in one body through the cross, thereby killing the hostility.” Jesus abolishes the civil and ceremonial law aspects of the Old Covenant removing all distinctions between Jew and Gentile. He writes the moral law on our hearts (Jeremiah 31:33), which is the promise of the New Covenant, symbolizing the coming of the Holy Spirit, and the changing of the hearts of men. All men, Jew and Gentile alike. In verse 19 we have the clearest declaration in the New Testament that Gentile believers have been included in the Israel of God. There is no way to mistake Paul’s assertion unless we are just being willfully blind.

 

“So then you are no longer strangers and aliens, but you are fellow citizens with the saints and members of the household of God”

 

He uses the exact same language that he used in verse 11 to make the connection.

 

“remember that you were at that time separated from Christ, alienated from the commonwealth of Israel (citizenship) and strangers to the covenants of promise”

 

So we see that the New Testament very clearly teaches us that, God’s promises have been expanded and improved upon. That God’s people will inherit the land that He promised them. But they will receive it when He gives them the world as their inheritance. Secondly, we see in a very clear and unambiguous way as well, that the New Testament teaches that the Gentiles are now included in the Common Wealth of Israel. They have been granted citizenship. All the covenant promises that God has made to His people are now theirs as well. On these two points the Bible is clear. The Church and Israel are the same entity, not because the Church replaced Israel, but because the Gentiles have been included within her. The Church is a part of Israel. She is catholic, which means she is not confined to a single nation, like the Truth was until Jesus came. She is apostolic, which means she was built on the foundation of the apostles and prophets, the Jewish apostolic figures, Jesus Christ himself being that chief cornerstone.

I’m writing this because of the misguided opinion of some believers that to not defend modern national Israel is in some way to be disobedient to God. This is to ascribe to modern Israel a divine sanction that is improper. I’m not saying we should not be allies with Israel, I’m just saying it should have nothing to do with her being the Israel of God, because, as I just demonstrated, she is not. She, at the current time, is a socialist, atheist, state that does not even practice the minimum requirements of Old Testament religious life. She is a civil organization of people just like every other modern state. Better than some, worse than others, ordinary, and man-made in every way. U.S. foreign policy shouldn’t be based on a bad theological position.

But, let’s say I’m wrong about everything I have written here. For the sake of argument, let’s assume I am. Should we give Israel money and arms? Should we claim to be her defender and say that without us she will perish? If you believe the modern nation of Israel is the Israel of God, then you should be very opposed to us engaging in that type of relationship. Why? Because God forbids Israel to engage in covenants of defense and not trust in Him alone for their defense.

 

Isaiah 31:1-5

[1] Woe to those who go down to Egypt for help and rely on horses, who trust in chariots because they are many and in horsemen because they are very strong, but do not look to the Holy One of Israel or consult the LORD! [2] And yet he is wise and brings disaster; he does not call back his words, but will arise against the house of the evildoers and against the helpers of those who work iniquity. [3] The Egyptians are man, and not God, and their horses are flesh, and not spirit. When the LORD stretches out his hand, the helper will stumble, and he who is helped will fall, and they will all perish together. [4] For thus the LORD said to me, “As a lion or a young lion growls over his prey, and when a band of shepherds is called out against him he is not terrified by their shouting or daunted at their noise, so the LORD of hosts will come down to fight on Mount Zion and on its hill. [5] Like birds hovering, so the LORD of hosts will protect Jerusalem; he will protect and deliver it; he will spare and rescue it.”

 

I love the Israeli people, and pray that God brings them to see His love for them in the face of Christ Jesus. To them the prophets came, of them the Messiah was born. But that is where their advantage ends. God loves all men, and we should wisely follow His example, seeking peace and pursuing it. This does not mean we cannot justly defend ourselves, or offer defense to the defenseless. But it does mean we would be wise to not ascribe divine attributes to modern Israel. Or, on the other hand, if we do believe Israel to be the divine nation of God, that we not provide money and arms for her defense, tempting her to deny her God, and become the cause of her judgment. Interestingly, both positions should lead us to the same foreign policy philosophy, non-intervention.

 

The Evangelical Libertarian

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!

We Now Have A Little Something for Everyone

We Now Have A Little Something for Everyone

Looking for good alternative reads on culture, economics, history, and current events. Look no further than The Evangelical Libertarian. From contrarian economic sites like David Stockman’s Contra Corner, Bob Murphy’s blog, and Peter Schiff’s blog, to politics and culture oriented sites like Libertarian Christians.Com, The Imaginative Conservative, Front Porch Republic, and others. We now have something to tickle your Contrarian fancy. Even yours truly, The Evangelical Libertarian joins the fray from time to time with Biblical examinations of current events and economic principles to help give a twist to the brew. Like, Subscribe, set us as your homepage, or do all three.

 

Soli Deo Gloria

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