July 14, 2014 (Bastille Day for those of you in Iowa)

Readers of this blog know that I love everything French: the food, the wines, the culture, the fashions and the French people themselves. They are a proud, elegant core of talented, hard working individuals with strong passions.  I even forgive them for being politically a bit left of center.  (Full disclosure: a large French corporation was a significant investor in a company I founded in the 1980’s.)

But now our pathetic excuse for an Attorney General has slapped France’s largest bank, BNP Paribas, with the largest fine ever meted out to a bank. Their crime? Conspiring to allow money transfers to nations that the U.S. has sanctioned.  Penalty?  $9 Billion and the forced resignations of thirteen BNP executives.  What insanity.  What’s next? Criminal charges against any entity trading with Russia?  Remember, Obama also imposed sanctions against them and several of their oligarchs.

At the moment, our monetary system allows us to act the bully. The Justice Department is using the country’s economic strength to strong arm foreign friends while refusing to indict even a single U.S. banker for having brought the world economy to the brink of collapse.  CitiBank today agreed to pay $7 Billion for its dominant role in the U.S. mortgage disaster, but not one executive was forced to resign. Oops… How silly of me. Those foreign bankers can’t vote here, and they don’t employ legions of lobbyists pouring millions into the re-election coffers of our Congress with the quid-pro-quo of protecting them from Eric Holder’s wrath… What a disgrace!

The current reality is that all paths to the global financial system lead through New York and dollar based financial systems.  That reality will not last forever if other major economies lose confidence and faith in this country and develop alternative payment systems free of U.S. political agendas.  It could happen.  The Euro is now struggling but the Chinese renminbi is actively seeking global presence.  Actions like the BNP fine will cause others to reconsider alternative non-dollar markets.  In anti-trust, environmental issues and FCPA (Foreign Corrupt Practices Act) foreign corporations always receive the biggest fines.

Our government acts as if there are never unintended consequences.  At this point in history when our credibility around the world is at an all-time low we should be courting friends, not pissing off every major world leader. Germany’s Chancellor Merkel, Brazil’s president Rousseff, Israel’s Prime Minister Netanyahu and Russia’s Premier Putin have all expressed disdain for Obama.  Now French President Hollande has threatened reprisals. With the world in turmoil and U.S. leadership at an all time low we should be making friends – not enemies.

When next we seek to build a world coalition to fight radical Islamists our friends will run for the hills simply to mock Obama. Quinnipiac College just released a poll showing Obama as the worst president in seventy years. I think I just heard Jimmy Carter exhale.

VIVE LA FRANCE

Vous êtes le bienvenu.

jpylewmg@gmail.com