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There
are now two great nations in the world, which
starting from different points, seem to be advancing toward the same goal: the Russians and the Anglo-Americans...
Each seems called by some secret design of
Providence one day to hold
in its hands the destinies
of half the world.
Democracy
in America,
Alexis de Toqueville, 1835
De Toqueville’s amazing prediction in 1835 about the destinies of Russia and the Anglo-Americans
was every bit the equal to those made by his illustrious French predecessor, Michel de Nostradame.
In the 1830s, Russia was a
czarist empire and the US had
fought its war of independence from England only 60 years before. The idea of Russia and the Anglo-Americans ..starting from
different points advancing
toward the same goal.. called by some
secret design of Providence..to
[each] hold ..
the destinies of half the
world was an extraordinary
prediction, especially in 1835.
Nonetheless, 110 years later, just as de Toqueville predicted, Russia and the Anglo-Americans each
advancing towards the same goal would become enemies in what would become
known as the
Cold War, an extraordinarily
costly decades-long battle for economic hegemony and world dominion in the second half of the 20th century.
In 1835, deToqueville
called the two great nations, Russia and the Anglo-Americans. DeToqueville knew full well the difference between England and America. Nonetheless, de Toqueville made no mistake when he described
the future Anglo-American
alliance as one nation.
It was a prescient prediction of a
coming, close relationship
between England and the
US, a relationship that would extend British geopolitical influence but would
bankrupt America in the process and cost it its once great
heritage as a beacon of freedom and liberty in the world.
EMPIRE, EMPIRE
AND MORE EMPIRE
When de Toqueville
made his prediction in 1835, both Russia and England were already empires. By the 18th century,
the Tsardom
of Russia had become the huge Russian Empire, stretching from
the Polish-Lithuanian Commonwealth eastward to the Pacific Ocean.
http://en.wikipedia.org/wiki/History_of_Russia
The British
empire, however, would become far larger and ultimately cover almost a quarter of the world’s land area. By 1922 it
was estimated that England ruled 20% of the world’s
population and was the largest
empire in history.
http://en.wikipedia.org/wiki/British_Empire
The US, unlike Russia and England, had no interest in empire. Indeed, the
democratic ideals of America were antithetically opposed to the
imposition of power over others, let alone nations.
I have never
been able to conceive how any
rational being could
propose happiness to himself
from the exercise of
power over others.
Thomas
Jefferson
America’s participation in the Anglo-American pursuit
of empire one century later
would have catastrophic results for America. Cut loose from
its moral anchor as a beacon of freedom, America would gain wealth and power but would lose its soul in the process; and, in the end, America
would also lose much of its wealth and power as well.
Although, in the end, America
would deny its democratic past to pursue the fruits of
empire, it would not
escape the costs, both financial and moral, in so doing:
Every
ambitious would-be empire
clarions it abroad that she
is conquering the world
to bring it peace, security and freedom, and is sacrificing her sons only for the most noble and humanitarian purposes.
That
is a lie, and it is an ancient
lie, yet generations still rise and believe it! If America ever does seek Empire, and most nations do, then planned reforms in our domestic life will be abandoned,
States Rights will be abolished in order to impose a centralized government upon us for the purpose of internal repudiation of freedom, and adventures abroad.
The
American Dream will then die—on battlefields
all over the world—and a nation conceived in liberty will
destroy liberty for Americans and impose tyranny on subject nations.
George S. Boutwell,
(1818-1905), Secretary of the Treasury under President Ulysses S. Grant, Governor of
Massachusetts, Senator and Representative from Massachusetts.
THE
ANGLO-AMERICA ALLIANCE
In 1945, at the
beginning of what is now known
as the Cold War, England
and America had become far more alike than America’s founding fathers could have foreseen; the
central bank being the most egregious example.
Of all the
English institutions that Founding
Father Thomas Jefferson opposed,
it was the central bank. Designed by bankers to transfer the profits
of societal productivity,
commerce and ingenuity to bankers
and financiers via the mechanism of debt, the central bank was at the center of British
power and wealth.
England’s central bank
allowed England to wage war on credit,
an advantage not shared
by others; and as along
as England’s armies
and navies were victorious, the bankers’ debts were repaid,
their wealth increased and England’s
empire expanded.
England’s central bank
allowed England to literally create money out of thin air. This monetary alchemy was possible as long as
England (1) maintained
confidence in paper money, (2) maintained
the balance between credit
and debt, and (3) kept its economy expanding.
In central bank debt-based economies, economic activity needs to expand or debt will overwhelm productive capacity; and when the growth of England’s
empire began to slow in the late
1800s, England’s bankers
realized they would soon need
another base from which to continue their financial franchise.
America was ideal for England’s purposes; and despite Jefferson’s numerous
warnings about central banks, in
1913 a consortium of private European
bankers, US financiers and industrialists
established the Federal
Reserve Bank in the US, modeled after
England’s central bank,
the very institution that
Thomas Jefferson so strongly
opposed.
It was the establishment of the Federal
Reserve Bank in America that
allowed England to regain
control of its former colony, the United States. Establishing
a central bank was the
first and only step necessary; for with a central bank established in America, private bankers would henceforth control America’s
money supply and, ultimately,
its political future.
Give
me control of a nation’s money and I care not
who makes the laws.
Mayer Amschel Rothschild (1744-1812)
RUSSIA, THE
ANGLO-AMERICANS AND THE COLD WAR
In the 20th
century, as England’s
imperial power weakened, England’s grip on the US grew
tighter; and by 1945, the US was
more than eager to betray its democratic
heritage in order to join England in the pursuit of world power.
After WWII, what Alexis
de Toqueville had predicted in 1835 came true. Russia and the Anglo-Americans would compete for world dominion in what
would become known as the Cold War.
The Cold War lasted from
1945 to 1990 when the USSR collapsed.
It would appear the Anglo-Americans won and Russia lost. But, in truth, both sides lost;
for the five-decade reign
of Anglo-American dominance would
cost the England and America their foundation of economic hegemony, i.e. the ability of their debt-based economies to expand ad infinitum.
The pursuit of global dominion would
also cost America its vast
gold reserves, once the largest
monetary reserves in history. Maintaining a world-wide military force forced the US to end the gold-convertibility
of the US dollar in 1971; and the removal of gold from the world monetary system allowed credit and monetary aggregates to grow at heretofore unprecedented rates.
The unrestrained growth of money
and credit after 1971 led to the sequential growth and collapse of the three
largest speculative bubbles in history: (1) the Japanese Nikkei in 1990, (2)
the US dot.com bubble in
2000, and (3) the 25-year global credit bubble in 2008.
The subsequent inability of the Anglo-Americans to revive the credit
and debt machine that had initially allowed it to achieve suzerainty over the
East has now leveled the playing field between the East and the West; and, in this new playing field, the East and West are pursuing
radically different strategies.
With its economic foundation threatened as never before, the West is doing everything in its considerable power to strengthen its now faltering economic foundation; and, gold,
once viewed as necessary
to maintain the stability
of its paper money, is now viewed
by Western bankers as a threat.
As confidence
in the West’s confidence game
of credit and debt wanes, investors are increasingly seeking the safety of gold. They have done so in every
monetary and financial crisis in history and it is no less
true today.
However, transferring
wealth from paper assets, e.g. stocks and bonds, to gold threatens
the leveraged asset base so necessary to the credit and debt ponzi-scheme that comprises the
foundation of modern economies,
i.e. debt-based capitalism.
It is perhaps appropriate
that the two former communist antagonists to capitalist expansion, China and Russia,
are now playing the exact
opposite hand. As the latest iteration
of ‘great game’
is being played out on the geopolitical
stage, China and Russia are going
for the gold.
THE EAST GOES
FOR THE GOLD
Since 2007, Russia
has more than doubled its official gold reserves, the
largest increase in reserves worldwide; and every month Russia
buys about a half a
billion dollars more. In 2012, China replaced India as the world’s top importer of gold and for the past five years China has led the world in gold mining
production.
No gold mined in either China or Russia is sold
on the open market. All gold mined
in China and Russia stays
in that country. Clearly,
the East has a different strategy than the West and gold
is a critical part of that strategy.
The West, however, is primarily
concerned with protecting the economic system,
i.e. capitalism, which allowed it to conquer and exploit much of the
world for almost three hundred years. Such leverage is rarely come by and the fact that it
may be ending has only redoubled Western efforts to save
it.
The East has a
much more sanguine outlook
on the possible demise of capitalism.
Capitalism is seen as a Western contrivance. Whatever replaces it will most likely
involve gold and they’re
getting ready.
My current youtube video, Exchange
is Inevitable, Like Death, is a discussion with fellow author and long-time
coin dealer, Ralph T. Foster. Most don’t realize the dangers of our
times. They will. Unfortunately for most, it will be
too late when they do.
Buy gold, buy silver, have faith.
Darryl Robert Schoon
www.survivethecrisis.com
www.drschoon.com
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