The Frightening Fall of the F*cking French

Africa kicks out the Frogs in favor of freedom [Morning Reckoning] September 07, 2023 [WEBSITE]( | [UNSUBSCRIBE]( The Frightening Fall of the F*cking French - First Niger, then Gabon: the French are “asked” to leave. - France’s colonial legacy in Africa is shameful… - … and has continued to the present day. [The Biblical Reckoning has arrived Genesis 47:15]( [Click here to learn more]( In his 2011 book Currency Wars… Jim Rickards issued a warning that came from the book of Genesis… One that could spell an [economic reckoning]( of biblical proportions. Now it looks like that prediction is starting to come true. And you may not have long to prepare. That’s why Jim published a major update to that warning… To tell you exactly what he recommends you do next. [And you can view it by clicking here.]( [LEARN MORE]( Piedmont, Italy September 07, 2023 [Sean Ring] SEAN RING Good morning Reader, Happy Thursday from a lovely Il Piemonte. I use Il Piemonte more often now because Piedmont is French for saying “the foothills.” The French are accustomed to being disliked, and for good reason. Take their AirBnBs, for example. On my recent jaunt around Europe with my wife’s family, my dear sister-in-law booked us an exquisitely located apartment. Rue de Rivoli runs along the north side of the Louvre, so it was perfect for sightseeing. Although the staircase to the second floor was perpendicular to the ground, I let that slide. It wasn’t until I had to drop a deuce that I got angry. This smooth-brained AirBnB owner decided to take one bathroom and split it into two. There was room for a toilet in each. That’s it. This owner clearly forgot that a person is supposed to sit comfortably on the toilet. I was in trouble from the moment I sat down. I couldn’t “Johnny Bench” it. Yes, I like to manspread maximally on the throne. No dice. But the problem really happened when I tried to wipe myself. As I leaned forward, I smashed my head into the bathroom door. Quite the conundrum, and one that never happened to me before. I’m not a gymnast. How was I going to do this? [You’re Invited To A LIVE Zoom Call!]( What: An urgent Zoom call exclusively for Morning Reckoning readers. When: Friday, September 8th at 10 AM Eastern. Where: Attend right from home via a virtual link. [>> Spots are limited. Click here to see how to reserve your seat.]( [LEARN MORE]( Luckily, no one else was home. So, I opened the door, constructed some advanced toilet paper origami, and prepared myself for a game of three-wall Twister. But buff my bottom, I did! I'm sure it looked something like this: And then, I hated the French just that little bit more. But my incident is nothing like what Western and Central Africa have suffered under French rule. Imagine your rich, domineering, sadistic mother-in-law stopping over to make a few changes… and never leaving! If you’re wondering why Africans have had enough of the Frogs, wonder no more. In this edition of the Morning Reckoning, we’ll examine why Africans don’t want the door hitting France in its effete ass on its way out. A Bit of History… French colonialism in Africa began in the 17th century with the establishment of trading posts in Senegal. But it wasn’t until the 19th century, during the Scramble for Africa, that France began to colonize the continent actively. By the end of that century, France had control over a vast empire in Africa, stretching from the Maghreb to the Congo River. [Map of Francophone Africa] Map of Francophone Africa; Credit: [The Exchange]( The French colonial policy in Africa was based on assimilation. This meant the French intended to transform their African subjects into French citizens with the same rights and responsibilities. However, assimilation never really worked. Africans were often excluded from the political process and denied access to education and other opportunities. French rule in Africa was harsh and exploitative. The French extracted vast wealth from their colonies and often used forced labor. This led to widespread poverty and suffering among the African population. There were many rebellions against French rule in Africa. The most famous of these was the Algerian War of Independence (1954-1962), which resulted in the withdrawal of French forces from Algeria. The last French colony in Africa, Niger, gained independence in 1960. However, through economic and military cooperation - some might call it “coercion” - France has maintained close ties to many of its former colonies. The Colonial Act From 1900 until Niger’s independence, The Colonial Act was in effect. It was a significant source of resentment among Africans. It was seen as a way for France to exploit its colonies legally. Here are the colonies’ obligations under the Colonial Act and some details about each of them: - Paying taxes to France: African countries were required to pay taxes to France, even though they didn’t have representation in the French government. These taxes were used to fund the French colonial administration and military. - Providing forced labor to France: African countries were required to provide forced labor to France, typically for public works projects. This labor was often unpaid or poorly paid, leading to widespread exploitation and abuse. - Exporting their raw materials to France: African countries were required to ship their raw materials to France at prices often set by the French government. This meant that African countries didn’t benefit from the total value of their natural resources. - Importing French goods: African countries were required to import French goods, even if these goods were more expensive than goods from other countries. This helped protect French businesses and ensure France maintained control of the African economy. - Using the French franc as their currency: African countries were required to use the French franc as their currency. This made it difficult for them to control their economies and made them more reliant on France. - Sending their children to French schools: African children were required to attend French schools, where they were taught French culture and values. This was seen as a way to assimilate Africans into French society and make them more loyal to France. - Adopting French culture and values: African countries were encouraged to adopt French culture. This was seen to make them more civilized and compatible with France. All of these are bad, but some are worse than others. And while the Colonial Act no longer exists, at least one shocking legacy remains: the CFA franc. No Monetary Policy For You! As Nathan Rothschild may have commented, “I care not what puppet is placed upon the throne of England to rule the empire on which the sun never sets. The man who controls the British money supply controls the British Empire, and I control the British money supply.” The conclusion is simple: if you want to control a country, control its currency. France controls fourteen countries in Central and West Africa with the CFA franc. CFA stands for Communauté Financière Africaine (African Financial Community). The CFA franc was created in 1945, during the French colonial period, to tie the economies of these countries to the French franc. It still exists and is pegged to the euro at a fixed rate of 1 euro = 655.957 CFA francs. This means that the value of the CFA franc is always the same as the value of the euro, regardless of what happens in the global economy. And by extension, these African countries have no control over their country. Because if you don’t control your currency, you don’t control your country. Just ask Germany, France, Italy, Spain, or any other member of Euroland. The West African Economic and Monetary Union (WAEMU) and the Central African Economic and Monetary Community (CEMAC) manage the CFA franc. These organizations are responsible for setting the exchange rate and ensuring the currency's stability. The CFA franc has been criticized for constraining African development in several ways. First, the peg to the euro makes it damn near impossible for African countries to devalue their currencies in times of economic crisis. This makes it more difficult for them to export goods and services and attract foreign investment. Second, the CFA franc is not freely convertible and cannot be freely traded on the open market. This makes it difficult for African businesses to operate internationally or get a credit line. Third, the French government manages the CFA franc, not those African countries. This gives France control over the economies of the CFA franc countries. This control prevents these countries from developing their economies independently. Wrap Up As you well know, your money is essential. It’s the medium of exchange you use every day. It’s the unit of account you use to measure value. It’s the store of value for most people to save their earnings. When your government controls your money, it’s bad enough. But when foreigners control your money, you’re not free. It’s that simple. The surprise isn’t that there’s a revolution going on in Africa. The wonder is how it took so long to start. All the best, [Sean Ring] Sean Ring Contributing Editor, The Morning Reckoning feedback@dailyreckoning.com X (formerly Twitter): [@seaniechaos]( [Warning: Will “Bidenflation” Destroy Your Retirement?]( [Click here to learn more]( If you’re like most Americans, you’ve worked hard for decades to build your financial legacy. And now, as a result of Biden’s disastrous money printing policies, that’s all at risk. According to one top retirement expert, “Bidenflation” threatens to destroy your retirement and make your hard-earned savings worthless. That’s why you must take action right away to protect yourself… [Click here now to get the simple, step-by-step actions to survive “Bidenflation.”]( [LEARN MORE]( In Case You Missed It… We’re Screwed If We Do the Math Sean Ring, Editor [Sean Ring] SEAN RING Dear Reader, Most economists agree that there’s an inverse relationship between women’s literacy and birth rates. Economists concluded that the more women read (and are educated), the less they want children. I’ve always thought that conclusion didn’t match reality. I believe that the more women can do the math, the less children they want (for lifestyle reasons). That is, numeracy, rather than literacy, drives the decision-making. There are loads of examples of career women who can afford – and have – more children. Sara Blakely, Victoria Beckham and Amy Coney Barrett come to mind. But this column isn’t about demographics. It’s about innumeracy, which we’ll define as incompetence with numbers. It’s what I think society’s big problem is. But instead of whining about the causes, symptoms, and cures of innumeracy, I’m going to give you a few rules of thumb. You can use them to see if your decision-making changes. For my part, these simple equations and rules gave me a target. Specifically, I knew how far ahead or behind I was, and how far I had to go to reach my goal. I won’t bombard you today, as I think the fewer and the simpler, the better. So let’s start with five simple rules to see if they change how you think. The Rule of 72 The Rule of 72 is one you’ve probably heard of. And you might be wondering why I’d even include such a rule. Well, let me first state the rule and then we’ll talk about how to use it. For most people, the Rule of 72 tells them how long it will take to double their money if it’s invested at a constant rate of return. For example, if you’re earning 10% per year on your portfolio, it’ll take 72/10, or 7.2 years to double your portfolio. If you wanted to back out the math, let’s assume you had a $100,000 portfolio. $100,000.00 x (1 + 0.10) ^ 7.2 = $198,622 The Rule of 72 isn’t perfect. But near enough is good enough in this case. If you’ve got a superstar financial advisor earning you 20% per year, then it’ll only take 3.6 years to double your portfolio. Now, let’s use this rule to look at inflation… something Sleepy Joe doesn’t want you to do. Historically, central banks have tried to keep interest rates around 2%. That meant a currency lost half its purchasing power in 72/2 or 36 years. You’d barely notice the loss in purchasing power, as it’d take so long to rear its ugly head. You’d probably go to the grocery store and wonder why eggs are “suddenly” double what they used to cost in 1983. We’ve all done something like that, haven’t we? But with inflation hitting 10% as it recently has, a currency loses half its value in only 72/10 or 7.2 years. Realistically speaking, let’s say Chairman Pow comes out and says, “We’d love rates to go back down to 2%, but that’s just not realistic. We’re now happy with a 4% target.” In that case, the dollar would lose half its purchasing power in 72/4 or 18 years. If you think eggs are expensive now, just you wait until 2041! The Rule of 72 is not only a great way to look at returns, but also at purchasing power erosion. Net Worth Indicator This is a great targeting mechanism, and one I’ve regrettably only just found. It’s from The Millionaire Next Door, by Thomas J. Stanley and William D. Danko. Multiply your age times your realized pretax annual household income from all sources except inheritances. Divide by ten. This, less any inherited wealth, is what your net worth should be. If you hit this number, you’re an AAW, or average accumulator of wealth. According to the authors, to be considered a PAW, or prodigious accumulator of wealth, you “should” have at least twice this number. What I like about this indicator is that it’s simple to calculate. And it gives you a target. Full disclosure, I’m a UAW, which is an under-accumulator of wealth. But I won’t use this number to feel bad. What I choose to do is to think bigger and get better results. If you’re unhappy with what this number tells you, I suggest you do the same. The 50-30-20 Rule Tweaked This is a great way to allocate your monthly paycheck. And it’s super-simple: - 50% of your income goes to paying your “needs.” These include rent or mortgage payments, car payments, groceries, insurance, health care, minimum debt payment, and utilities. - 30% of your income goes to paying down your debt. Once that’s done, this becomes discretionary entertainment expenses.* - 20% of your income goes to future investment. *In the original formulation, 30% go to your “wants.” That’s fine, but I think paying down your debt to zero takes priority. I couldn’t believe how fast my debt disappeared. It took about six to twelve months. But it was gone and gone for good. I’ve run a monthly credit card balance maybe once or twice in the last twenty years. And it’s thanks to this little system. 3x Rule for Buying a House Another one I love and that would keep many a rich people out of trouble, let alone those of lesser means. Never spend more than three times your gross annual income on a house. I’m in the process of buying a house right now and I’m well within this rule. My down payment is ready and won’t empty my account, and my monthly payments are easily manageable. Far too many people only calculate what their monthly payments would be at the current rate of their mortgage. But if you’ve got an adjustable-rate mortgage, that could easily end in tears. There’s no need to overpay for a McMansion. The Normal Distribution (Bell Curve) Finally, we get to simple probabilities. Again, this is just a rule of thumb. Nothing in finance is “normal.” But this can help you distinguish investing realism from fantasy. Let’s do an example. Let’s say Stock ABC has earned on average 10% per year. But it’s accomplished that with a standard deviation around that 5% average of 2%. If we assume normal returns – a dangerous thing in finance, but we do it all the time – then ABC has a 68% chance of returning between 3% and 7%. It has a 95.6% chance of returning between 1% and 9%. And it has a 99.7% chance of returning between -1% and 11%. Here’s the thing, though: it certainly can crash far below a -1% return. And it may moonshot 45% on the FDA approving its new drug. But the probability of either of those scenarios happening is very low. Knowing this distribution is incredibly important for setting your expectations as an investor, and for also gauging what the market thinks of your potential investment. If you can adjust your thinking to being more probabilistic, you’ll be shocked at how different the world looks. Wrap Up The absolute last thing I wanted to do was to patronize you. But I also don’t want to assume you know things you may not know. So I hope, at the very worst, this was just a refresher of things you may have put on the backburner. But if there is a lot of new material here, I can’t encourage enough to deploy this new knowledge as early and as often as you can. If this is the sort of thing you’d like to see more of, please let me know [here](mailto:feedback@dailyreckoning.com). And if you found this the least bit unhelpful, do let me know that as well. All the best, [Sean Ring] Sean Ring Contributing Editor, The Morning Reckoning feedback@dailyreckoning.com X (formerly Twitter): [@seaniechaos]( Thank you for reading The Morning Reckoning! We greatly value your questions and comments. Please send all feedback to [feedback@dailyreckoning.com.](mailto:dr@dailyreckoning.com) [Sean Ring] [Sean Ring, CAIA, FRM and CMT]( is a former banker and financial educator and is the editor of the Rude Awakening. Sean has trained interns and graduates from Goldman Sachs, Morgan Stanley, Citi, Bank of America, Standard Chartered Bank, DBS (Singapore), the Abu Dhabi Investment Authority (ADIA), Bank Indonesia (the central bank), HSBC, Barclays, RBS, and BlackRock. He knows the global economy is being corrupted by forces that most people can't understand and has used his unique and worldly experiences to help people navigate the markets. 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