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.
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.
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.
Source
banzai7
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