Prologue – What sled dogs and the Yukon teach us about the importance of trust
Many years ago I visited Whitehorse, Yukon. It is a truly magical place. To visit the Yukon is to feel that you are experiencing another planet. Amazingly, it’s easily accessible. During that visit I met a man who ran a “Sled Dog Tour” business. The dogs would run together – each dog doing its part. A sled dog racing team operates as a “well oiled” unit. Each dog – whether the lead dog or one of the dogs pulling from the middle – has a very specific and well understood role. Together the dogs worked together to create an outcome. That outcome far exceeded what any one dog could achieve individually. I asked the man running the business how it was that the dogs worked so well together. He answered that the effectiveness of the dogs as a unit was the result of one simple thing:
“Trust in each other”
He meant that individually the dogs trusted each other to work toward a common goal and each dog trusted that the other dogs would behave as they were expected to behave.
That’s obvious. But, sometimes the obvious can be difficult to see. If the dogs did not trust each other they could not operate as an effective unit. Absent trust, each dog would be left to only his own capabilities. With trust great things could be accomplished. (Political systems are organized around the question of what things are better left to individuals and which things are achieved better as a group. For example, should a country have a national health card system?)
What’s true of the effectiveness of “sled dogs” is true of the interaction of countries.
Trust isn’t everything! It’s the only thing!
It’s also true that the Yukon is an incredible place to visit!
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Seasons Greetings And A Celebration of 14 years of the Isaac Brock Society
The Isaac Brock Society officially began on December 10, 2011 with a post written by Pretros about the FBAR. Fourteen years letter the FBAR is still an issue for Americans abroad and fourteen years later the Isaac Brock Society continues on. I take this opportunity to thank some (perhaps not all) of the original founders of Brock who had the vision, courage, generosity and skills to create Brock. The site was created following the “OVDI Summer of 2011” and the fear and trauma that caused. The combination of the IRS, the tax compliance industry and the media were combining to deliver the message that a “U.S. birthplace” made one a target for retroactive taxation, forms and penalties. The message was made more powerful because of the alignment of the voices of the IRS, the tax compliance community and the media. The reality was that none of the three understood the situation of Americans abroad. Yet, it took some time for their ignorance to become clear. The Isaac Brock Society was conceived in the message to bring clarity, calm and understanding to the hysteria. The founders of Brock deserve special thanks and acknowledgementt. In that spirit I offer a special shout out to Petros, Calgary411, Pacifica and Deckard.
Those founders of Brock “dug the foundation” on which the Isaac Brock Society was built. Once that foundation was built, the contributors and commenters completed the “house of Brock” and generated the massive commentary. An example is this holiday post from 2019 which captures the essence of the Isaac Brock Society.
Two of the many lessons and observations from that period include:
1. The whole is often greater than the sum of the parts.
When working together individuals, groups and institutions can achieve more than if they work separately. The fear instilled by the IRS, tax compliance industry and media working together (although not a deliberate conspiracy) was far more effective when it came collectively.
2. “Trust isn’t everything. It’s the only thing.”
The 2011 OVDI program, the enforcement of FBAR, the rollout of FATCA and the enforcement of citizenship taxation was a horrible time for Americans abroad. It included a crisis of trust. No longer did Americans abroad trust the United States to be their friend and supporter. Many began to view the United States as a threat to their very existence.
The “OMG” (“Oh My God”) Moment and the erosion of trust …
In 2011 Americans abroad experienced their OMG (“Oh My God”) moment.
For many individual Americans abroad, the enforcement of FBAR, FATCA, citizenship taxation, etc. was the moment that they understood that they could not trust the United States to consider their interests. The United States of America – the country of their birth -became a threat to their lives
In 2025 the rest of the world experienced a collective OMG moment.
The OMG moment included the realization that the United States could not be trusted to maintain its relationship to other countries that had existed for 80 years. The United States reputation as a country that could be trusted came to an end. (Obviously no country is tied to another for eternity. That said the “expectation interest” developed in many relationship dictates that relationships should be ended with notice and concern for the impacts on the other party.)
As Charlie Munger said:
“… reputation and integrity are your most valuable assets and can be lost in a heartbeat.”
For Americans abroad the OMG moment included the terrifying realization that the U.S. government was a threat to the stability of their lives.
For other countries the OMG moment included the terrifying realization that a trusted friend could no longer be trusted.
Trust is a casualty of the OMG moment.
