Category Archives: Finance

Shedding a Foreign Policy Based on Imperialism

Read Part I, Part II, Part III, Part IV, and Part V.

Is the U.S. ripe for a real revolution, where the disenfranchised and repressed overthrow the enfranchised and privileged?

Unfortunately, there are many weapons in the hands of the existing U.S. power structure. These include racism, control of the media, chauvinism, greed and more. These are all put into the service of weakening and dividing the population, and pitting them against each other, thus preventing the unity that might otherwise become the demise of the oligarchs and corporations.

It is encouraging to see apparently sincere support for Black Lives Matter and resistance against the police and other forces of suppression, but how deep does this sincerity run? How concrete and effective will it be? Or will it become largely cosmetic, as with past attempts to fight racism and change our society in fundamental ways? Many fear, based on experience, that the current uprising will be insufficient by itself to make more than a token difference, that the consciousness raised will be largely temporary and less than meaningful.

The present series of articles suggests a different – or at least complementary – approach. When the weak and disenfranchised attempt to take power, they need to be numerous, unified, determined and organized to succeed. That’s asking a lot, and few would argue that the movement in the U.S. possesses these traits at pressent.

An alternate approach is to strengthen, enfranchise, unify and organize the society first through other means, creating a stronger base upon which to redesign and reconstruct it. Rather than seizing power and then using it for social justice, we can empower the citizenry first or concurrently, thus enabling them to better press their demands and effectively alter their society.

One of the most pressing demands at present, voiced loudly and frequently in the demonstrations, is to tame police brutality, or even do away with the police altogether. Police brutality and endemic racism in the U.S. is in fact what motivated this series of proposals. Can we expect these demonstrations to have greater impact than previous movements, going back decades, generations and perhaps even centuries? What can we do to reach goals that continue to elude Blacks, Indigenous peoples and other disenfranchised populations?

Significantly, none of the installments of the manifesto has yet addressed the issue of policing, which will probably be the last installment other than a concluding one. This is because the other elements are all essential in doing away with a repressive and racist police force, and must be addressed first (in terms of explanation). In fact, all the elements are interrelated. They can be addressed separately to a certain extent, but they need each other in order to be fully successful, and therefore deserve to be demanded simultaneously.

A Foreign Po­­licy for the Masses

Part V proposed measures for taming the power and influence of the U.S. military, the main tool in imperialist ambitions that exhaust the resources of the U.S. population and enhance the power of its ultra-elite. Hand in hand with the military is a highly aggressive U.S. foreign policy, which is what drives an imperialistic use of the military. One is an extension of the other. Its basis is the Wolfowitz doctrine of 1992, the Project for a New American Century and other neoconservative formulations. World domination, the subservience of other nations and the weakening of noncompliant nations is its primary object, by means of bullying, threatening and ultimately sabotaging and destroying other nations in order to remain in complete control. It matters not what sacrifices the American people make in order to feed such megalomania, nor those made by the victims of this policy. Whether they are peaceful or not, they must die in their millions and become refugees in the tens of millions to feed the bloodthirst of this policy. Imperialism always targets the disempowered, and especially Black and Brown peoples.

Many of these traits of U.S. foreign policy may disappear or at least diminish in the absence of military projection, as discussed in Part V. Nevertheless, it is important to explicitly state how policy will change, which will in turn illustrate why the military is mostly superfluous to the welfare of the general population. A lot of the change is as simple as actually complying with international law, such as the Geneva Conventions and the UN Charter, to which the U.S. is already a signatory.

The central obligation of international law is that no nation will attack another or violate its sovereign territory except in response to a direct attack from that state, or a threat of immediate attack. Today the U.S. violates this obligation everywhere that it sends its drones to assassinate targets or even conduct surveillance without the permission of the nation in whose territory these missions are conducted. But of course, the U.S. goes well beyond such measures. It attempts “regime change” against countries that are not sufficiently loyal or compliant, and do not open their doors for exploitation of their economies for the benefit of U.S. corporations and interests, nor assist in enforcing U.S. global objectives.

Part of the problem is possibly that Congress has illegally abdicated its war powers under the U.S. Constitution. The Authorization for the Use of Military Force (AUMF) is unconstitutional because Congress cannot authorize modification of the Constitution by giving its power to the Executive branch of government, thereby abdicating its constitutional role. Only an approval by ¾ of the state legislatures can change the constitution. The AUMF must be abolished.

The use of economic, financial or other sanctions upon other nations is also a form of warfare, and potentially a cruel and devastating one. Such policies are therefore also illegal unless undertaken to counter a direct threat, and subsequent to a declaration of war by the Congress.

Other instruments of an imperialist foreign policy must also be dismantled. These include NATO, which is merely an association of gangsters, intended to enhance the ability of the U.S. to threaten and bully other nations. Similarly, the sole purpose of the Western Hemisphere Institute for Security Cooperation AKA School of the Americas is to assure that tiny power elites in countries that are under the domination of the U.S. will be able to suppress the rest of the population and thereby maintain their power for use in the service of the imperialist objectives of the U.S.

Similarly, the instruments of financial and economic coercion and exploitation must be disbanded. All international trade relations and commerce as currently upheld by the North American Free Trade Agreement (NAFTA), the World Trade Organization (WTO), the International Monetary Fund (IMF) and World Bank (WB) must be reformulated to protect the labor, human rights, economy, environment and domestic industry of partner and recipient nations so that the growth of local industry and agriculture has the advantage over foreign corporate domination. The WTO, IMF, and World Bank must be eliminated or replaced with new institutions that are democratic, transparent, and accountable to the citizens of all nations. All debts incurred by poor nations must be forgiven, and financial assistance structured so as to enhance a nation’s income and ability to provide for the welfare and prosperity of its people, rather than to provide income to the creditors.

Finally, all weapons development, sales and military aid must cease being used to dominate other nations and to further imperialist interests. Foremost among these are nuclear weapons. They are simply too dangerous to be put into the service of geopolitical strategic objectives. Furthermore, they are an expenditure that in no way contributes to the welfare and prosperity of the American people. They should be abolished and all nuclear powers should mutually reduce stockpiles to this end. The U.S. should sign the Comprehensive Test Ban Treaty and end the research, testing and stockpiling of all nuclear weapons of any size. The same should apply to chemical and biological weapons and land mines. In addition, the U.S. should reverse its withdrawal from the Anti-Ballistic Missile Treaty and honor its stipulations.

In truth, the steps outlined in previous Manifesto installments, and especially number V (drastically reducing the role of the military) are likely to make the suggestions with regard to foreign policy relatively easy to implement. These effects will also become evident to a greater extent in the remaining installments.

COVID-19 Great Depression: Global Ecosocialism Is the Way Out

Sunflower field in Hudson — Photo by Larry Goodwin

Suffering in numbers

The abstract science of mathematics is a language like music. But while music is in the realm of pure emotion, the language of mathematics only speaks to the mind not the heart. Numbers and equations do not lie. They are not, by essence, subjective. This being said, when the numbers are those of the dead, they can have the chilling emotional effect of a meat cleaver cutting through bones. While we have tried to stay away from the mainstream media litany of the death tolls, on April 25, 2020 we had passed 200,000 deaths globally. In the United States alone, by the end of April, the COVID-19 pandemic will have killed more people than the reported 58,220 US soldiers who died during the Vietnam war.

from the archive of Urban Museum

Neoliberal and populist war presidents?

Ironically, two political leaders who are supposed to be on opposite sides of the political spectrum have framed their COVID-19 crisis narrative as a war. One is French President Macron, a neoliberal globalist champion, and the other one is nationalist-populist US President Trump. Both, however, have a lot in common: they are proponents of global corporatism, are Commanders in Chief of their respective military but did not serve in the military. Trump was a reputed Vietnam war draft dodger, while Macron was born too late to have done the mandatory French military service. In either case, their war on COVID-19 is not going well. As matter of fact Trump and Macron are winning their war on COVID-19 like the US won in Vietnam or NATO won in Afghanistan. And incidentally, if the COVID-19 is a world war, both of these presidents and other world leaders should consider ordering a military draft.

From the archive of The National Guard

The COVID-19 killing spree is not yet over, even in its first installment. It is hard to forecast, but in a month or two, once countries such as India, Indonesia, Pakistan and the entire African continent are computed in the tragic body count, we could globally have reached 350,000 deaths. The worldwide government incompetence will continue and the litany of deaths will keep ticking away. Meanwhile human suffering is not a great concern for capitalism’s ruling class, the economy and the financial markets are now their main focus.

Photo by David Shankbone

Capitalism’s callous imperatives

Never mind their countless failures and shortcomings through the crisis. What mostly concerns our callous and cynical political and business leaders is COVID-19’s impact on the global economy. While the lockdown of half of humanity could have been beneficial for an extra couple of weeks from a healthcare stand point, the enforcers of the imperative of global capitalism do not care. As far as salvaging what can still be saved from the current economic collapse, the political technocrats who serve the billionaire class, are perfectly willing to sacrifice thousands of human lives. People are dying. Poor people are starving even in the so-called developed world and relying on food banks in places like Queens, New York; New Orleans; or Seine St. Denis, in Paris’ poor northern suburbs. But what truly matters for the worshippers of capitalism is the well being of their free-market God, a profane deity brought to its knees by the COVID-19 pandemic. Humanity is facing a time of reckoning. Despite what the global ruling class hopes for, the global economy has collapsed, and things will never return to normal.

The COVID-19 Great Depression

In just two months, the global economy was brought to a standstill. Airplanes are not flying; factories are not manufacturing, with the exception of face masks; oil has become worthless; three billion people are not consuming, at the exception of food products. The imposed hiatus for most global consumption and circulation of people and goods has blown a giant hole in the complex capitalist edifice. The main question now is will it recover. While the notion of a Great COVID-19 Depression has become accepted, governments worldwide are trying to give their citizens the idea that ultimately it will be okay again. As during the crash of 2008, worldwide national or supra-national banking institutions have followed the lead of the US Federal Reserve. Worldwide, the equivalent of about $7 trillion have been printed, and they are in the process of being injected in the financial markets. Without this, Wall Street and the other markets would already be worth as little as a barrel of US crude oil.

The oil war has come home to roost in the US

On April 21, the West Texas Intermediate (WTI) benchmark for US crude dropped below zero. As matter of fact, it was trading at -$4.29 a barrel. Needless to say, despite the federal money injection, the impact on the US economy energy sector will be catastrophic. This situation was completely predictable. It was years in the making, with one geopolitical blunder after another. After all, for decades the US and its Saudi allies have used oil price as a weapon. The oil war has come home to roost.

During the Clinton administration an oil price drop was used against Saddam Hussein’s Iraq; Bush Jr.’s administration used it against Iran; and the Obama administration used it against Russia as a retaliation over Ukraine. The Trump administration has applied the same policies with regime change goals in Iran and Venezuela. Like his predecessors, the de-facto ruler of Saudi Arabia, Mohamed bin-Salman, has been fully on board for decades. The mechanics are simple: you try to achieve your regime change goals by bankrupting another country’s economy, especially if it mainly relies on oil extraction, as does Venezuela. But Maduro is still in place and the Iranians are holding on against all odds.

The Trump administration, despite its claim of being an America-First isolationist, has dutifully followed the post World War II US empire’s geopolitical strategy of asserting a worldwide dominance, even bigger than the Monroe doctrine, by engineering failed states. It is likely, however, that with 26 million unemployed, millions relying on food banks to eat, and an economy that has imploded, the US empire will have to scale back its ambitions. For global neoliberalism’s prodigal son, Emmanuel Macron, the economic and social landscapes are equally grim.

By Lanpernas

Anger in France: “la racaille” & Gilets Jaunes’ new sans-culottes?

Despite the tough lockdown for more than six weeks in France, clashes have occurred between youths in poor French suburbs and the police. It started Saturday April 18 in Villeneuve La Garrenne with what appears to have been excessive police force against a motorcyclist. From there, it snowballed to the poor suburbs in other parts of Paris and elsewhere in France, specifically in Strasbourg, Roubaix and a Lyon suburb. In Strasbourg a police station was set on fire. The French far-right has done its best to capitalize on the incident, which involved mainly young French citizens of North African or African origin. The far-right populist leader of the Rassemblement National, Marine Le Pen, called for a severe crackdown on the culprits of the social unrest. She made the racist claimed that “la racaille” (the human scum) had to be neutralized. Le Pen also attacked the Macron administration for doing something right, which was the release of 8,000 prisoners from prisons to avoid COVID-19 mass infections. This was to be expected from racist tough-on-crime Le Pen, but Eric Ciotti, a congressman from Les Republicains, a party that is supposed to be less Fascist than Le Pen’s, went a step further and called for L’intervention de l’armee et un couvre feu (a deployment of the military and a curfew).

by Francisco Anzola

Most people understand that, without the work of the six million French citizens of North African or African origin, France’s confinement would be a lot more challenging. Just like in New York, Detroit, Chicago, Los Angeles or New Orleans, the mothers and fathers of the angry youths in France are largely the ones who have kept the country going during the lockdown, day in and day out, often risking their lives, anonymously. They are the clerks in supermarkets, the truck drivers and other delivery persons, the janitors, the garbage collectors, the bus drivers and low-paid support staff in hospitals and nursing homes. Generation after generation, since the early 1960s, the largely North African immigrants have done the hard work that the Caucasian French no longer care to do. Former president Chirac called this social inequality a fracture sociale in the 1990s. So it was identified but never fixed, and the COVID-19 crisis has just made it more blatant. France will ease its lockdown after May 11. After this, if the social inequalities are not addressed by actions instead of only words, the angry youths of the poor suburbs could be joined by the Gilets Jaunes, whose movement just went underground.

by Denisbin

Ecosocialism equation: climate crisis + COVID19 = systemic change

So far the central banks’ remedy, quantitative easing — a euphemism for printing money — has been largely futile. The 3 trillion dollars and 1.5 trillion Euros injected are financial band-aids on our global economical Titanic. If this doomed ship represents our pre-COVID-19 mode of development, it should be cheerfully sacrificed along with the giant cargo ships and planes, which are the nervous system of a globalization that is chocking on itself. The unfolding COVID-19 crisis has fully exposed the failures of governance and socio-economic systems worldwide.

Beyond their short-term post-COVID-19 strategies, few policy makers or business leaders have any valid answers. The ruling class’ model of globalization, based on corporate imperialism’s core principle of profit over people, is in ruins. In the middle of an unstoppable worldwide paradigm shift, so-called leaders and thinkers are in paradigm paralysis. They are trapped in a pre-COVID-19 reality bubble, unable to think outside the box.

by Gilbert Mercier

As citizens of the world, we may look ahead possibly to a better future for the many. One critical systemic problem unlikely to survive COVID-19 is the extreme social inequality driven by hyper-capitalist wealth concentration. In a nutshell, the existential problem of capitalism that could cause its end is as follows: exactly 2,019 billionaires worldwide have more wealth than 60 percent of the world population. This is not only immoral but also unsustainable. Let us travel back in time to 1788 for a moment. In France absolute King Louis XVI, who presumably combined the power of Macron and the wealth of France’s richest man Bernard Arnault, thought he was firmly in power. But within a year he was swept away by the French Revolution. The motto of the revolution and subsequent French Republic was Liberte, Egalite, Fraternite. These three notions still have power and value. If climate justice is added to them, this could be the foundation of an ecosocialist society.

While the Great Depression of 1929 unquestionably triggered the rise of Fascism in Italy and Nazism in Germany, humanity cannot afford for that history to repeat itself. The COVID-19 Great Depression upon us might be capitalism’s end game and the birth of a new global ecosocialist era based on social equality, real democracy with sound governance, zero economic growth, zero global military spending, and respectful harmony with what is left of the natural world.

by Gilbert Mercier

For Victory Day: It’s Time to Think About Finally Winning WWII

75 years ago Germany surrendered to allied forces finally ending the ravages of the Second World War.

Today, as the world celebrates the 75th anniversary of this victory, why not think very seriously about finally winning that war once and for all?

If you’re confused by this statement, then you might want to sit down and take a deep breath before reading on. Within the next 12 minutes, you will likely discover a disturbing fact which may frighten you a little bit: The allies never actually won World War II…

Now please don’t get me wrong. I am eternally thankful for the immortal souls who gave their lives to put down the fascist machine during those bleak years… but the fact is that a certain something wasn’t resolved on the 9th of May, 1945 which has a lot to do with the slow re-emergence of a new form of fascism during the second half of the 20th century and the renewed danger of a global bankers’ dictatorship which the world faces again today.

It is my contention that it is only when we find the courage to really look at this problem with sober eyes that we will be able to truly honor our courageous forebears who devoted their lives to winning a peace for their children, grandchildren and humanity more broadly.

The Ugly Truth of WWII

I’ll stop beating around the Bush now and just say it: Adolph Hitler or Benito Mussolini were never “their own men”.

The machines they led were never fully under their sovereign control and the financing they used as fuel in their effort to dominate the world did not come from the Banks of Italy or Germany. The technologies they used in petrochemicals, rubber, and computing didn’t come from Germany or Italy, and the governing scientific ideology of eugenics that drove so many of the horrors of Germany’s racial purification practices never originated in the minds of German thinkers or from German institutions.

Were it not for a powerful network of financiers and industrialists of the 1920s-1940s with names such as Rockefeller, Warburg, Montague Norman, Osborn, Morgan, Harriman or Dulles, then it can safely be said that fascism would never have been possible as a “solution” to the economic woes of the post-WWI order. To prove this point, let us take the strange case of Prescott Bush as a useful entry point.

The patriarch of the same Bush dynasty that gave the world two disastrous American presidents (and nearly a third had Donald Trump not annihilated Jeb at the last minute in 2016) made a name for himself funding Nazism alongside his business partners Averell Harrimen and Averell’s younger brother E. Roland Harriman (the latter who was to recruit Prescott to Skull and Bones while both studying at Yale). Not only did Prescott, acting as director of Brown Brothers Harriman, provide valuable loans to keep the bankrupt Nazi party afloat during Hitler’s loss of support in 1932 when the German population voted into office the anti-Fascist General Kurt von Schleicher as Chancellor, but was even found guilty for “Trading with the enemy” as director of Union Banking Corporation in 1942!

That’s right! As demonstrated in the 1992 Unauthorized Biography of George Bush, eleven months after America entered WWII, the Federal Government naturally conducted an investigation of all Nazi banking operations in the USA and wondered why Prescott continued to direct a bank which was so deeply enmeshed with Fritz Thyssen’s Bank voor Handel en Scheepvart of the Netherlands. Thyssen, for those who are unaware, is the German industrial magnate famous for writing the book  I Paid Hitler.  The bank itself was tied to a German combine called Steel Works of the German Steel Trust which controlled 50.8% of Nazi Germany’s pig iron, 41.4% of its universal plate, 38.5% of its galvanized steel, 45.5% of its pipes and 35% of its explosives. Under Vesting Order 248, the U.S. federal government seized all of Prescott’s properties on October 22, 1942.

The U.S.-German Steel combine was only one small part of a broader operation as Rockefeller’s Standard Oil had created a new international cartel alongside IG Farben (the fourth largest company in the world) in 1929 under the Young Plan. Owen Young was a JP Morgan asset who headed General Electric and instituted a German debt repayment plan in 1928 that gave rise to the Bank of International Settlements (BIS) and consolidated an international cartel of industrialists and financiers on behalf of the City of London and Wall Street. The largest of these cartels saw Henry Ford’s German operations merging with IG Farben, Dupont industries, Britain’s Shell and Rockefeller’s Standard Oil. The 1928 cartel agreement also made it possible for Standard Oil to pass off all patents and technologies for the creation of synthetic gasoline from coal to IG Farben thus allowing Germany to rise from producing merely 300 000 tons of natural petroleum in 1934 to an incredible 6.5 million tons (85% of its total) during WWII! Had this patent/technology transfer not taken place, it is a fact that the modern mechanized warfare that characterized WWII could never have occurred.

Two years before the Young Plan began, JP Morgan had already given a $100 million loan to Mussolini’s newly established fascist regime in Italy with Democratic Party kingmaker Thomas Lamont playing the role of Prescott Bush in Wall Street’s Italian operation. It wasn’t only JP Morgan who loved Mussolini’s brand of corporate fascism, but Time Magazine’s Henry Luce unapologetically gushed over Il Duce putting Mussolini on the cover of Time eight times between 1923 and 1943 while relentlessly promoting fascism as the “economic miracle solution for America” (which he also did in his other two magazines Fortune and Life). Many desperate Americans, still traumatized from the long and painful depression begun in 1929, had increasingly embraced the poisonous idea that an American fascism would put food on the table and finally find help them find work.

A few words should be said of Brown Brothers Harriman.

Bush’s Nazi bank itself was the spawn of an earlier 1931 merger which took place between Montagu Norman’s family bank (Brown Brothers) and Harriman, Bush and Co. Montague Norman was the Governor of the Bank of England from 1920 to 1944, leader of the Anglo-German Fellowship Trust and controller of Germany’s Hjalmar Schacht (Reichsbank president from 1923-1930 and Minister of Economy from 1934-1937). Norman was also the primary controller of the Bank of International Settlements (BIS) from its creation in 1930 throughout the entirety of WWII.

The Central Bank of Central Banks

Although the BIS was established under the Young Plan and nominally steered by Schacht as a mechanism for debt repayments from WWI, the Swiss-based “Central Bank of Central Banks” was the key mechanism for international financiers to fund the Nazi machine. The fact that the BIS was under the total control of Montagu Norman was revealed by Dutch Central Banker Johan Beyen who said: “Norman’s prestige was overwhelming. As the apostle of central bank cooperation, he made the central banker into a kind of arch-priest of monetary religion. The BIS was, in fact, his creation.”

The founding members of the Board included the private central banks of Britain, France, Germany, Italy and Belgium as well as a coterie of 3 private American banks (JP Morgan, First National of Chicago, and First National of New York). The three American banks merged after the war and are today known as Citigroup and JP Morgan Chase.

In its founding constitution, the BIS, its directors and staff were given immunity from all sovereign national laws and not even authorities in Switzerland were permitted to enter its premises.

This story was conveyed powerfully in the 2013 book Tower of Basel: The Shadowy History of the Secret Bank that Runs the World.

A Word on Eugenics

Nazi support in the build up to, and during, WWII didn’t end with finance and industrial might, but extended to the governing scientific ideology of the third Reich: Eugenics (aka: the science of Social Darwinism as developed by Thomas Huxley’s X Club associate Herbert Spencer and Darwin’s cousin Sir Francis Galton decades earlier). In 1932, New York hosted the Third Eugenics Conference co-sponsored by William Draper Jr (JP Morgan banker, head of General Motors and leading figure of Dillon Read and co) and the Harriman family. This conference brought together leading eugenicists from around the world who came to study America’s successful application of eugenics laws which had begun in 1907 under the enthusiastic patronage of Theodore Roosevelt. Hiding behind the respectable veneer of “science” these high priests of science discussed the new age of “directed evolution of man” which would soon be made possible under a global scientific dictatorship.

Speaking at the conference, leading British Fascist Fairfield Osborn said that eugenics:

aids and encourages the survival and multiplication of the fittest; indirectly, it would check and discourage the multiplication of the unfitted. As to the latter, in the United States alone, it is widely recognized that there are millions of people who are acting as dragnets or sheet anchors on the progress of the ship of state…While some highly competent people are unemployed, the mass of unemployment is among the less competent, who are first selected for suspension, while the few highly competent people are retained because they are still indispensable. In nature, these less-fitted individuals would gradually disappear, but in civilization, we are keeping them in the community in the hopes that in brighter days, they may all find employment. This is only another instance of humane civilization going directly against the order of nature and encouraging the survival of the un-fittest.

The dark days of the great depression were good years for bigotry and ignorance as eugenics laws were applied to two Canadian provinces, and widely spread across Europe and America with 30 U.S. states applying eugenics laws to sterilize the unfit. Eugenics’ successful growth was due in large measure to the fierce financial support of the Rockefeller Foundation and the science magazine Nature which had been created in 1865 by T.H. Huxley’s X Club. The Rockefeller Foundation went on to fund German eugenics and most specifically the rising star of human improvement, Joseph Mengele.

The Nazi Frankenstein Monster is Aborted

Describing his January 29, 1935 meeting with Hitler, Round Table controller Lord Lothian quoted the Fuhrer’s vision for Aryan co-direction of the New World Order saying:

Germany, England, France, Italy, America and Scandinavia … should arrive at some agreement whereby they would prevent their nationals from assisting in the industrializing of countries such as China, and India. It is suicidal to promote the establishment in the agricultural countries of Asia of manufacturing industries.

While it is obvious that much more can be said on the topic, the Fascist machine didn’t fully behave the way the Dr. Frankensteins in London wished, as Hitler began to realize that his powerful military machine gave Germany the power to lead the New World Order rather than play second fiddle as mere enforcers on behalf of their Anglo masters in Britain. While many London and Wall Street oligarchs were willing to adapt to this new reality, a decision was made to abort the plan, and try to fight another day.

To do this a scandal was concocted to justify the abdication of pro-Nazi King Edward VIII in 1936 and an appeasing Prime Minister Neville Chamberlain was replaced with Winston Churchill in 1940. While Sir Winston was a life long racist, eugenicist and even Mussolini-admirer, he was first and foremost a devout British Imperialist and as such would fight tooth and nail to save the prestige of the Empire if it were threatened. Which he did.

The Fascists vs Franklin Roosevelt

Within America itself, the pro-fascist Wall Street establishment had been loosing a war that began the day anti-fascist President Franklin Roosevelt was elected in 1932. Not only had their attempted February 1933 assassination failed, their 1934 coup d’etat plans were also thwarted by a patriotic General named Smedley Darlington Butler. To make matters worse, their efforts to keep America out of the war in the hopes of co-leading the New World Order alongside Germany, France and Italy was also falling apart. As I outlined in my recent article “How to Crush a Bankers’ Dictatorship“, between 1933-1939, FDR had imposed sweeping reforms on the banking sector, thwarted a major attempt to create a global Bankers’ dictatorship under the Bank of International Settlements, and mobilized a broad recovery under the New Deal.

By 1941, Japan’s attack on Pearl Harbor polarized the American psyche so deeply that resisting America’s entry into WWII as Wall Street’s American Liberty League had been doing up until then, became political suicide. Wall Street’s corporatist organizations were called out by FDR during a powerful 1938 speech as the president reminded the Congress of the true nature of fascism:

The first truth is that the liberty of a democracy is not safe if the people tolerate the growth of private power to a point where it becomes stronger than their democratic state itself. That, in its essence, is fascism – ownership of government by an individual, by a group, or by any other controlling private power… Among us today a concentration of private power without equal in history is growing. This concentration is seriously impairing the economic effectiveness of private enterprise as a way of providing employment for labor and capital and as a way of assuring a more equitable distribution of income and earnings among the people of the nation as a whole.

While America’s entry into WWII proved a decisive factor in the destruction of the fascist machine, the dream shared by Franklin Roosevelt, Henry Wallace and many of FDR’s closest allies across America, Canada, Europe, China and Russia for a world governed by large-scale development, and win-win cooperation did not come to pass.

Even though FDR’s ally Harry Dexter White led in the fight to shut down the Bank of International Settlements during the July 1944 Bretton Woods conference, the passage of White’s resolutions to dissolve BIS and audit its books were never put into action. While White, who was to become the first head of the IMF, defended FDR’s program to create a new anti-imperial system of finance, Fabian Society leader, and devout eugenicist John Maynard Keynes defended the Bank and pushed instead to redefine the post-war system around a one world currency called the Bancor, controlled by the Bank of England and BIS.

The Fascist Resurgence in the Post-War World

By the end of 1945, the Truman Doctrine and Anglo-American “special relationship” replaced FDR’s anti-colonial vision, while an anti-communist witch hunt turned America into a fascist police state under FBI surveillance. Everyone friendly to Russia was targeted for destruction and the first to feel that targeting were FDR’s close allies Henry Wallace and Harry Dexter White whose 1948 death while campaigning for Wallace’s presidential bid put an end to anti-colonialists running the IMF.

In the decades after WWII, those same financiers who brought the world fascism went straight back to work infiltrating FDR’s Bretton Woods Institutions such as the IMF and World Bank, turning them from tools of development, into tools of enslavement. This process was fully exposed in the 2004 book Confessions of an Economic Hit Man by John Perkins.

The European banking houses representing the old nobility of the empire continued through this reconquering of the west without punishment. By 1971, the man whom Perkins exposed as the chief economic hit man George Schultz, orchestrated the removal of the U.S. dollar from the Gold-reserve, fixed exchange rate system director of the Office of Management of Budget and in the same year, the Rothschild Inter-Alpha Group of banks was created to usher in a new age of globalization. This 1971 floating of the dollar ushered in a new paradigm of consumerism, post-industrialism, and de-regulation which transformed the once productive western nations into speculative “post-truth” basket cases convinced that casino principles, bubbles and windmills were substitutes for agro-industrial economic practices.

So here we are in 2020 celebrating victory over fascism.

The children and grandchildren of those heroes of 1945 now find themselves attached to the biggest financial collapse in history with $1.5 quadrillion of fictitious capital ripe to explode under a new global hyperinflation akin to that which destroyed Weimar in 1923, but this time global. The Bank of International Settlements that should have been dissolved in 1945 today controls the Financial Stability Board and thus regulates the world derivatives trade which has become the weapon of mass destruction that has been triggered to unleash more chaos upon the world than Hitler could have ever dreamed.

The saving grace today is that the anti-fascist spirit of Franklin Roosevelt is alive in the form of modern anti-imperialists Vladimir Putin, Xi Jinping and a growing array of nations united under the umbrella of the New Deal of the 21st Century which has come to be called the “Belt and Road Initiative”.

Had Prescott’s grandson Jeb (or Prescott’s spiritual grand daughter Hillary) found themselves in the position of President of the USA at this moment, it is unlikely that I would be writing this now, as I’m fairly certain WWIII would have already been launched. However, with President Trump having successfully survived nearly four years of Deep State subversion, and having called repeatedly for a positive alliance with Russia and China, a chance still exists to take the types of emergency actions needed at this moment of existential crisis to do what FDR had always intended, and win World War II.

It Takes a Revolution to Make a Solution

I admit upfront that this is a hard newsletter to read. It is about debt. There is a bloodless quality to the way that we talk about the debt of the poorer nations. There is nothing poetic here. The numbers are alienating, their outcome shocking.

In mid-April, eighteen heads of government from Africa and Europe publicly urged the World Bank, the International Monetary Fund, the African Development Bank, and the New Development Bank as well as other regional institutions to announce an ‘immediate moratorium on all bilateral and multilateral debt payments, both public and private, until the pandemic has passed’. Meanwhile, these agencies – and others – were asked to ‘provide liquidity for the procurement of basic commodities and essential medical supplies’.

On 30 April, Abiy Ahmed, Prime Minister of Ethiopia, wrote that the call for debt postponement is insufficient; what was needed was debt cancellation. In 2019, stunningly, sixty-four countries around the world (half of them on the African continent) spent more money to service their external debt than on health care; the governments in 121 low and middle-income countries spent 10.7% of their revenue on public health, while they drained 12.2% on external debt payments. Ethiopia, Ahmed wrote, ‘spends twice as much on paying off external debt as on health’. Last year, the IMF said that Ethiopia was one of the five fastest growing economies in the world; this is no longer going to be the case because of the impact of the novel coronavirus. Ethiopia, Ahmed noted, will slip into a coronavirus recession.

In late March, the IMF announced that it would provide a new facility worth $1 trillion to prevent countries from falling into a coronavirus recession (under pressure from the US Treasury, the IMF excluded Venezuela). Within a short period of time, more than a hundred countries appealed to the IMF for help. The IMF and the G20 either cancelled debt payments for the next six months or froze debts for the remainder of the year. The G20 said that $32 billion in debt servicing owed to official, private, and multilateral creditors would be suspended in 76 countries. The current debt stocks of the developing countries – by comparison – is over $8 trillion. The absence of any international debt authority means that these initiatives are insufficient. Private creditors are not bound to following through with these initiatives, which means that many of the highly indebted countries will have to continue to service their debt to them. There is talk of the creation of a ‘central credit facility’ developed within the World Bank, where the indebted countries could deposit their debt and let the World Bank deal with the creditors; after the coronavirus has gone, the situation of the debt would be reassessed.

Belén Marco Crespo, Who Sustains Life? 2020.

Far more ambitious is the proposal from the UN Conference on Trade and Development (UNCTAD) to establish an International Developing Country Debt Authority. This body would have a dual mandate: first, to oversee any temporary standstills in debt repayments in order to stave off such events as a coronavirus recession; second, to look carefully at the necessity of fundamental debt relief (including debt cancellation). UNCTAD has made similar proposals in 1986, 1998, 2001, and 2015; each time the powerful creditors and the wealthy nations have rejected this approach. In 1985, the Cuban government hosted the Havana Debt Conference, where Fidel Castro made a plea for a Third World Debt Strike to put pressure on the creditors to come to the table; immense pressure on the less confident states derailed that approach. Neither UNCTAD nor the Havana Debt Conference were able to move this agenda. It now returns to the table.

On April 16, US Treasury Secretary Steven Mnuchin said bluntly that the US is against any of these more aggressive measures. The most that the US would accept was ‘time-bound suspension of debt service payments’ in the G20 and Paris Club (official creditors), while the London Club (private creditors) would be asked to act on a voluntary basis. Not only has the US put its foot down to prevent any proper immediate relief, but it has said that no long-term debt cancellation is going to be allowed. If there is a coronavirus recession in the countries of the Global South, then so be it.

Ezrena MarwanObjects and labour, 2020.

One of the countries that will slip into a coronavirus recession is Jamaica, where Minister of Finance and Public Service Nigel Clarke said that the ‘tourism sector is operating at zero utilisation and the prospect and timing of reopening remain unclear’. In November 2019, Jamaica completed its obligations to an IMF loan; the head of the IMF team, Uma Ramakrishnan, said that Jamaica was poised for a bright future. But these friendly words came at the end of a process of terrible austerity on the island.

Christophe Simpson, Chair of Jamaica Lands, spoke to Tricontinental: Institute for Social Research about the situation of debt and health care in Jamaica. Simpson emphasises that, in Jamaica, 90% of the population is descended from people who had been enslaved, whose labour was stolen by the British. When the people won their freedom, the British exchequer compensated the plantation owners for the ‘loss’ of their ‘property’; the loan that the British government took to pay the plantation owners was not paid off till 2015, when British Prime Minister David Cameron came to Jamaica to say that reparations for the formerly enslaved people and their descendants was off the table. Colonialism left Jamaica reliant upon tourism, with limited economic sovereignty.

‘We are in a never-ending cycle of debt’, Simpson said. ‘International institutions like the IMF set conditions on the money they lend, so that – for instance – we are not allowed to spend more than 9% of our GDP on public sector wages’. Health care and education face cuts, which means that nurses and teachers are underpaid. ‘Nurses and teachers are lured away from Jamaica by promises of higher wages in countries such as the United States, Canada, and Britain’. ‘They essentially benefit from our indebtedness’, Simpson explained. Jamaica’s people provide each other with free primary and secondary education and with half of the tertiary education costs; 80% of tertiary graduates leave the island to work abroad. Jamaica, which has been robbed for centuries now subsidises the health care sectors in the North Atlantic states.

Elean Thomas (1947-2004), a founder of Jamaica’s Workers Party, in her book Before They Can Speak of Flowers: Word Rhythms (1988) thought about how often she had been asked not to interfere in politics, or – as she put it in the clever Jamaican variation – in politricks. Neither hunger nor ill-health have to do with anything other than politics, since it is through political decisions that resources are stolen from people who then suffer the indignities of poverty.

How I fe no deal with politics?
when Politricks a deal with me.

Take for instance…
the good book says
‘By the sweat of your brow
you shall eat bread’

But don’t you know
whole heap of people
a sweat rivers
every day
and still can’t find no bread
to eat?

Politricks
is what decide that.

Vikas Thakur, ‘Home’, a distant dream for India’s migrant labourers, 2020.
Our Tricontinental: Institute for Social Research dossier no. 28 (May 2020) on CoronaShock: A Virus and The World is focused on the politics – or the politricks – of the moment. The virus of austerity and of enforced debt servitude produced a fragile world order in most of the world, which has crumbled in the wake of the global pandemic. The dossier traverses the political framework of neoliberalism, which has eroded the basic social institutions that provide health care and education, creating a world in which unproductive finance rules the roost and in which the vast platform or web-based firms have taken hold of a large part of the economy.

Along with the International People’s Assembly, Tricontinental: Institute for Social Research produced a 16-point declaration that includes immediate relief and long-term measures. In our most recent dossier, we look carefully at one of these policies, the call for a Universal Basic Income (UBI). We lay out our critical view of the UBI scheme, offering our assessment of why this must be an undiluted universal scheme and why it must be funded by taxes on the wealthy and on profits rather than merely by dismantling other social service schemes. We take a socialist approach to the UBI, insisting that it be a supplement to other social wages rather than perpetuate the myth of the ‘deserving poor’ to sift out who should qualify and who should not.

Dossier no. 28 is illustrated by eight artists from Cuba to Malaysia who came together to make images that depict the Great Lockdown. This newsletter shares some of their work.

A call for artists for Anti-Imperialist Poster Exhibitions.

Collaboration with artists is a central feature of our work. For that reason, we have partnered with the International People’s Assembly and the International Week of Anti-Imperialist Struggle to hold a poster exhibition featuring four different concepts – capitalism, neoliberalism, hybrid war, and imperialism. Please widely forward the call for this exhibition.

Dar Yasin (Associated Press), Srinagar, Kashmir, 9 August 2019.

Three AP photographers – Dar Yasin, Mukhtar Khan, and Channi Anand – won a Pulitzer Prize for their photography on the struggles inside Kashmir. Please see our Red Alert on Kashmir.

Economic Epidemic

Dynamic duo:  Same bat virus, same fat profits

From Havana to Helmstedt

The major reason for Cuba’s travel restrictions — always used as grounds for slandering the Cuban state — is the extreme difficulty Cuba has maintaining foreign exchange reserves essential for international trade,  especially since the end of trade-in-kind with the COMECON. Every traveller from Cuba spends pesos that have to be covered by Cuba’s USD or EUR reserves. Since there are already more than enough obstacles imposed by the US embargo, every forex transaction is critical for Cuba’s balance of payments — for its ability to buy what it cannot produce. In fact, those who can still recall crossing from West Berlin to East Berlin will also remember that it was necessary to exchange DM 30 for M 30 for every day one spent in the GDR. This was heavily criticised in the West, especially by travellers who would complain that it was impossible to spend the M 30 in a day since everything was so inexpensive. Of course, the GDR was trying to compensate for the discriminatory exchange rates that made trade with the West a drain on its foreign currency reserves.

While many ordinary visitors complained and the Western media encouraged Germans in the East to complain about the buying power of the GDR mark, the fact is that throughout the world national economies only survived the Bretton Woods regime as long as they maintained currency controls. A major element in the economic warfare waged by the US Empire since 1945 has been to abolish fixed exchange rates. Having rigged the post-war international monetary regime to replace the British pound with the US dollar as the benchmark currency, the International Monetary Fund and World Bank were deployed to stabilise the US dollar with advantage over the old European currencies.

Although officially these were international institutions, they were organised like private corporations. The decisions were to be made by the majority of shares held in the IMF or World Bank. Since the US held the majority of capital in both, it was endowed with the most votes over any Fund or Bank decision. The quasi-currency of the Fund and the Bank was called special drawing rights (SDR). These units of account were based on a weighted value of the underlying “reserve” currencies, mainly the USD. SDRs could be used to resolve balance of payments discrepancies. Members of the IMF were extended SDRs according to the relative strengths of their economy. Based on the SDRs allocated to a country it could draw dollars or another reserve currency in amounts sufficient to pay temporary imbalances between imports and exports, transactions that after WWII were almost all USD business.

As the late Jamaican Prime Minister Michael Manley once pointed out — when the Bretton Woods agreements were signed most of the countries, like Jamaica, were still colonies or protectorates of some European or North American power. Hence no provision was made for them to even have independent economies or national currencies. As a result most of the world’s population and any of the newly independent countries that did not adopt a version of a Euro-American currency had no way to monetize their economic activity in international trade. They were left entirely dependent upon the USD, GBP, and FF for foreign trade of any kind. In order to limit USD hegemony in Africa, the French invented the CFA-Franc. This African franc tied its former African colonies to France by giving the CFA-franc a favourable exchange rate with French franc, although not parity. Overall, however, the post-war independence movements were all faced with the inherent dependence of their currency systems from the machinations of US and European banks with their control over the two major foreign exchange markets, the City and Wall Street. The exceptions to this regime were the Soviet Union and COMECON as and after 1959 Cuba.

When the US economy faced possible financial collapse toward the end of its war in Vietnam (it had been fairly successful in transferring the costs of the Korean War to the “United Nations”), secret negotiations by the Nixon administration with the Kingdom of Saudi Arabia had, through their offices within OPEC, saved the USD by abolishing the gold fixing and establishing the USD as the sole currency for the world oil trade. At one fell swoop any country that did not have domestic oil supplies or had to trade oil on the world market was forced to use US dollars. To prove the point the US regime has never hesitated to wage war against any OPEC member that does not comply with this iron rule. Of course, the US is the only country which can issue US dollars and its banks are the only ones who can sell USD denominated debt, directly or indirectly, hence the central role of the Federal Reserve System — the private banking cartel chartered to issue dollars and control US monetary policy. The US regime has also pursued rigorous policies, even if not always entirely successful, to draw all those dollars back into US assets or to permit US entities to acquire foreign assets through the unlimited capacity to generate USD and to monetize private business (while on the other hand prohibiting the monetizing of public debt for social services, infrastructure etc.)

This is the context in which the current economic war with China and to a lesser extent with Russia has to be seen. This economic war entered a new phase with the Wuhan attack.

Lucrative lockdown

Fast-forward: European and US authorities order various degrees of “lockdown” and international travel, even within the EU itself, comes to a virtual halt. Airlines, hotels, and the rest of the travel sector have practically no more than essential business. The transport sector is also substantially restricted. The everyday economy is almost in coronary arrest.

What are the benefits of the general lockdown in the West? Is it really possible that the corona virus was so shocking that the economy as a whole was only an afterthought? Are we to believe that it was merely an oversight on the part of government to contemplate contingencies for epidemics but not for economics? It would be nice to think that Western governments care so much about the health of their citizens but that is rubbish. What is really very important — in fact, it is the only important issue for those who own our governments is MONEY and, of course, the power that goes with it.

What are the immediate consequences of the lockdown in economic terms?

  1. a) restriction of travel by masses of a generally mobile and consuming population (at least in the EU)
  2. b) restriction — soon to reach extinction of a substantial percentage of SMEs
  3. c) obstruction of supply chain transactions, not least of which with China
  4. d) increased unemployment beyond the already deliberately understated figures
  5. e) inevitable price increases, whether scarcity induced or because of added “safety” costs
  6. f) the creation of potential for a layer of corruption and contraband traffic that will not only raise the prices of everyday life but partly criminalise it.

At the same time we have heard more than a few reports of new QE (aka giving trillions to so-called banks). *

In the Western media one finds accusations that China caused the “corona crisis” to benefit from a fall in asset prices (not only stock markets but also for businesses damaged by the lockdown) to buy them up on the cheap. Personally I follow a golden rule when reading Western official statements, whether directly from regime mouthpieces or through their Great Wurlitzer: what they accuse is what they are hiding. It is like that classic scene in many a classroom: the bully slaps another pupil. Pupil slaps back and bully screams. The teacher only sees the return slap and never the first strike. The slapped pupil is punished and the bully rewarded.

If we ask critically what the new QE is supposed to do — is it to protect all these banks from another 2008 failure? No, not really. Instead it is to fill the “banks” with cash for pre-emptive buying following the price crashes so that China can be blocked out of any further investment in the West’s critical sectors.

It is also survival money so that all the defaults and bankruptcies in the SME sector can be written off without damaging the overall profit line.

In other words a) and b) can be directly linked not only to strategic population control objectives, linked also to the now infamous universal vaccination programme, but also to the imposition of currency controls. In Europe, fewer euros will flow to China and in the US obviously the USD flows will be reduced.

  1. c) The disruption of supply chains is mainly an organisational measure. This will reduce the number of channels by which China can trade in the West. In the first stage it will also facilitate the consolidation of the economy in fewer hands so that those supply chains can be better managed from the top.
  2. d) As argued elsewhere, purchasing power has declined steadily over the past thirty to forty years for most of the working population on both sides of the Atlantic. There is a need for a fundamental demographic adjustment. Germany, for instance, has used imported labour since its reestablishment in 1949. First it was a substitution for labour shortages immediately after its defeat by the Soviet Union.  The so-called Economic Miracle — the reconstruction period — in large part funded by orders from the US war machine in Korea — quickly absorbed its available German labour force. Hence it started to suck workers from impoverished Italy and Greece. If the German government is to be believed, then the domestic labour force is too old or too small to meet current demands, hence while domestic workers are under house arrest, the flow of persons displaced by NATO wars; e.g., in Syria, continues uninterrupted. Thus the new generation of industrial and technical labourers at the bottom of the German social hierarchy will not be Turkish but Arabic speaking. There is no reason that they will be able to return to their homes any time soon since NATO is not finished destroying them.

At the same time the crushing of the domestic small and medium-sized sector will — as it always has — have a positive effect by forcing wages down even more. If the virus is really as effective as some claim at killing people aged 60 and above, then the state pension funds will be able to declare surpluses soon, net revenues from immigrants and a sudden decline in beneficiaries. This sounds cynical but the insurance model for social security installed under Bismarck anticipated much shorter lifespans and fewer eligible retirees than today. The government’s plan to raise the retirement age to 70 cannot solve the problem because there are no jobs for these 65+ citizens. Hence they have to live from savings or the dole. Better just let them die.

If there is an economic meltdown in the West, then these assets have to remain denominated in USD/EUR in order to prop up these currencies and preserve the fortunes of dollar/euro/or sterling billionaires.

Now add to this the lockdown and recall the case of CUBA.

The lockdown makes good economic sense from the commanding heights of the Western economy! By more or less crushing the SME sector with its increasing exposure to China; e.g., import of components and finished goods for resale, a substantial foreign exchange gap is closed. China is deprived of these payments. Thus foreign trade with China becomes ever more concentrated in the few cartels that share control over the monetary policies of the FED, Bank of England and ECB.

For normal mortals this is insane.  Why would the West want to crush the lower third of its economy? For years people have been whining about the 1% but otherwise not doing very much about it. In fact, the 1% can live very well without most of the normal economy as long as they have currency stability for their stores of wealth in the world.

Not only travellers, like for Cuba, but much of the real economy, constitute a genuine risk to the monetary system the great Western private banks created in the BoE, in 1913 with the FED, and later with the ECB. The ECB and the euro can be sacrificed as long as the USD and GBP remain world standards.

  1. e) One of the virtues of the system which could emerge as a short-term or medium-term result of the lockdown and its associated policies and practices is the creation of a new class of criminal activity — the real economy. Since it is unlikely that the West can suborn China and together with Russia impossible, the West has an obvious potential as far as I can see that has hardly been mentioned. Perhaps it is worth recalling from mainstream history the narrative of feudalism: the peasants were tied to the land. The aristocracy and royalty fought over land plus the chattel (the people occupying and working the land). Movement from the land was forbidden without permission by the feudal lord (a prohibition also enforced by the Churc; e.g., through the Inquisition). Pursuing a craft or trade was almost only possible in cities, which may or may not have been “free”. The details can be found in most standard history books about this period.

Casino royale and camino real

However, we have almost no peasantry left — something that can be detected in the abysmal quality of food found in countries like Germany, the Netherlands, Belgium, Great Britain. Instead there are only “free labourers” some of whom imagine they own their homes. Immediately after the collapse of the GDR any traveller could see an explosion in the number of hairdressers and small restaurants or similar personal service enterprises. Much of this business was the desperate attempt to recover earning capacity after West German government and business closed GDR factories and other employing institutions causing an explosion in unemployment that is still vastly understated and concealed by half-hearted social policies. These businesses are vulnerable to taxation and other cost-intensive regulations that are characteristic of modern bureaucratic states like Germany. It is also no wonder that they offer little more than a marginal income that often has to be compensated by some other job or social benefit.

At present that is all very exhausting and frustrating for the vast majority of people in this low-income sector. Yet it is still legal. The first step toward terrorizing the bulk of the soon to be even more under- or unemployed is to restrict or effectively prohibit the personal service sector — for health reasons. Now it is almost impossible to get a haircut or a manicure anywhere because these businesses have been forced to close as part of the policy of “social distancing”. Reality, however, knows no such prohibitions. Those people who have no other means of earning a living except personal services and those who need those services will find a way to meet and transact business.

This is where the spirit of Mr Gates is especially pernicious — but not simply because of some billions more that he may steal. What Mr Gates, as the poster boy, and the whole public health paramilitary/civil affairs regime that is nascent as I write offer us — or may well force upon us — is spiritually and socially akin to the Prohibition regime created by the Volstead Act in the US. Prohibition was introduced ostensibly to control alcohol abuse. However, it failed to get substantial legislative support until people like Henry Ford — then along with Rockefeller one of the world’s richest men — insisted that Prohibition would give them the power to destroy the meeting places of immigrants, especially those from Eastern and Southern Europe where beer and wine were integral to social life. Forbidding alcohol to people who for centuries considered wine and beer part of their diets was a serious attack on their private and family lives. However, since this was a “health” issue the Volstead Act did not violate any constitutional rights. Any place could be closed for serving alcohol of any kind. The meeting venues for almost all immigrants could be shut by armed police wholly within the law.

Although this was a draconian law, it was not really enforceable. In fact, the famous Kennedy political dynasty was only one family whose wealth came from breaking the law. At no time during the period of Prohibition in the US was the ruling class deprived of intoxicating drink. Moreover the covert sale of alcohol, the bribery of police and other officials, the payment of protection money to gangsters, created an entire corporate structure, which survives today although its product range is based mainly on opiates. The illegal and legal drug businesses constitute one of the main pillars of USD supremacy, along with oil and weapons, but that is just a detail here.

The important point here is that the culture of prohibition has clearly mutated into the field of “communicable disease”; i.e., highly infectious viruses. Whether or not Mr Gates and his friends will succeed in their ID2020 scheme — vaccine or subcutaneous identity chips — is certainly a very serious question. But even if this particular model does not get forced under our skin, the struggle in the lower half or third of the population to survive through personal services and hospitality will become a target for the same kind of parasitical class that developed and enriched itself under the Prohibition regime, and in the environment of permanent war (which was what 1984 most nauseatingly described) scarcity and corruption are designer processes — intended to punish and discipline the majority of the population while extracting every bit of surplus from their already meagre incomes. This artificially created illegality will empower a class of people who profit from serving it and have no interest whatsoever in return to normal human relations. The already immanent price increases and due to increased unemployment parallel decline in wages — with the risk that one can be excluded from work or income for “health” reasons — will further enrich those at the top while undermining solidarity downward as people become caught in the net of this policing regime.

Therefore, it is absolutely essential to resist any further imposition of this state of siege. In this matter, I cannot help paraphrasing some otherwise noxious colonial from the 18th century: we must all be sick together, or each of us will be sick separately — in isolation.

There are some people who read George Orwell’s books as prescriptions; after all he spent his last years working for an office in the British “Ministry of Truth”. Then there are those who completely misread his books as attacks on the Soviet Union and communism. However, those who read his books carefully will see that he understood the spirit and actions of his employers very well. Orwell’s fiction is ambivalent, like his entire career and his nonfiction works as well. Perhaps the best way to understand them is as the diaries of a colonial police officer, who knew his duty and no matter how disagreeable did it. That duty was to hold down the hands and feet of the ruled while the rulers emptied their pockets. Orwell knew he was working for gangsters, but he needed the job. That was the price he paid.

AND yes, if Madeleine Albright was ready to see half a million Iraqi children dead for the policies she was appointed to represent, you can bet that some 60 million, dead or enslaved, is also a price the 1%  find worth paying to keep their privilege on this planet intact.

*QE = quantitative easing: a term of financial jargon used by the US Federal Reserve System to denote privileged financial support to the top tier “banks” to prevent them from suffering (or collapsing) under the weight of their own elaborate extractive operations; e.g., debt siphons and gambling rackets. The mechanism involves the quasi-governmental (but actually privately owned and managed) Federal Reserve System purchasing the “bad” or uncollectible debts or gambling chits of these top tier “banks” by issuing Treasury obligations (e.g. so-called T-notes), basically certified claims that these “banks” may then assert against the US government to siphon tax receipts and other public income into their coffers. These claims are negotiable too, meaning they are traded on financial markets and can be used like money to buy non-financial assets.

From COP-21 To COVID-19: The Collapse Of “Predictive Models” and the Return to Actual Thinking

American Surgeon General Jerome Powell’s recent announcement that America would begin using real data and real trends instead of the World Health Organization-Bill Gates driven ‘predictive models’ came as a breath of fresh air for many who were beginning to lose hope that reason had been banished from world policy. When compared with reality, the WHO/Gates-funded narrative justifying the total shutdown of global economies falls apart like a house of cards as outlined perfectly by the Swiss Propaganda Research Institute’s Facts of COVID-19.

Powell’s announcement opens up a larger discussion on the nature of the human mind, and how the oligarchy has managed to subvert nation states over the past 50 years using a simple technique that replaces actual creative thinking for mind-less computer modelling.

The Global Coup: Predictive Models Take Over Actual Thinking

The age of “predictive doomsday models” in many ways grew out of the 1972 Limits to Growth study funded by the Club of Rome which popularized the technique of tying temperature increases to carbon dioxide and projecting economic variables like population, resource losses, and “pollution growth” into the future in order to scare the hell out of their incredulous victims and intimidate nations to drastically modify their collective behavior.

This use of skewed, under-defined statistics, projected into the future in order to “act preventatively on future crises” became a hegemonic practice for the next 40 years and has been used by neo-Malthusians consistently to justify the increased rates of war, poverty and disease across the world. Paul Ehrlich’s influential 1968 book The Population Bomb used similar models to cast trends of geometric population growth into the future which would result in a global crisis of unimaginable proportions as oil would dry up, arable lands dry away and resources disappear by the year 2000.

In 1968 his book, Ehrlich stated his misanthropic view in the following words:

A cancer is an uncontrolled multiplication of cells; the population explosion is an uncontrolled multiplication of people… We must shift our efforts from the treatment of the symptoms to the cutting out of the cancer. The operation will demand many apparently brutal and heartless decisions.

Obama and his science czar John Holdren (UNITED STATES SCI TECH SOCIETY) – RTXPEZ2

Ehrlich’s protégé John Holdren, who has led in the shutdown of NASA`s manned space systems and fusion program as Obama`s science Czar went further when he wrote on p. 942 in his 1977 book Ecoscience:

Perhaps those agencies, combined with UNEP and the United Nations population agencies, might eventually be developed into a Planetary Regime- sort of an international superagency for population, resources, and environment. Such a comprehensive Planetary Regime could control the development, administration, conservation, and distribution of all natural resources, renewable or nonrenewable, at least insofar as international implications exist. Thus the Regime could have the power to control pollution not only in the atmosphere and oceans, but also in such freshwater bodies as rivers and lakes that cross international boundaries or that discharge into the oceans. The Regime might also be a logical central agency for regulating all international trade, perhaps including assistance from DCs to LDCs, and including all food on the international marketThe Planetary Regime might be given responsibility for determining the optimum population for the world and for each region and for arbitrating various countries’ shares within their regional limits. Control of population size might remain the responsibility of each government, but the Regime would have some power to enforce the agreed limits.

Under this heartless logic, nation states simply had to be converted into tools for imposing depopulation programs rather than naively endeavoring to end colonialism, poverty and war as foolish statesmen like John Kennedy, Bobby Kennedy, Enrico Mattei or Martin Luther King attempted.

Kissinger’s National Security Study Memorandum 200 (1974) outlined this new objective for America stating: “Assistance for population moderation should give emphasis to the largest and fastest growing developing countries where there is a special US and strategic interest”. Among those developing nations targetted for population reduction, NSSM-200 listed birth control and the withholding of food as primary tools. Kissinger coldly wrote: “is the US prepared to accept food rationing to help people who can’t/won’t control their population growth?”

Throughout the 1970s, the Trilateral Commission/Council on Foreign Relations cabal under the direction of Kissinger and Zbigniew Brzezinski completely took over American foreign policy and launched a new economic program which Trilateral Commission member Paul Volcker called “the controlled disintegration of the economy”. Upon attaining chairmanship of the Federal Reserve in 1979, Volcker put this policy to work by raising interest rates to 20% and kept them there for another two years- destroying America’s small and medium agro industries while leaving only a highly cartelized corporate behemoth capable of surviving such draconian rates. Real growth plummeted, long term planning was forgotten and deregulation ushered in vast speculation which replaced the formerly dirigistic capitalism that made the west great. All investments into scientific and technological progress were shut down. Fusion energy research was systematically destroyed as fast as the space program. Infrastructure investments dried up and America’s age of nuclear power construction was shut down.

In true Pygmalion fashion, the oligarchy was able to “scientifically justify” their misanthropic view of global governance by first breaking humanity’s knee caps and then arguing that we were never meant to run.

In today’s language, this practice of ‘predictive modelling’ is reflected in the central banking high priest Mark Carney’s calls for a new financial system to promote a decarbonized society by 2050 since ‘predictive models’ state that the world will heat 1.5 degrees according to a presumed connection to carbon dioxide emissions which can only be corrected if we monetize carbon and put a profit on shutting down human industrial activity. As it turns out, when compared to the real data, not only does one quickly find that the post 1977 warming trend ended in 1999, but the actual temperature falls well below all computer projections produced by the IPCC (which is to environmental policy what the WHO is to health policy).

This hysterical prediction is also seen in Prince Charles’ recent warning that the world has 18 months to save itself before ‘predictive modelling’ says that global warming becomes unstoppable and the earth burns in a dystopic inferno!

Charles is the son of the same Prince Philip who infamously gushed over his wish to be reincarnated as a deadly virus “in order to solve overpopulation” making it more than a bit ironic that Charles announced his contraction of COVID-19 on March 25. In a 1988 interview with Deutsche Press Agentur, Prince Philip said:

The more people there are, the more resources they’ll consume, the more pollution they’ll create, the more fighting they will do. We have no option. If it isn’t controlled voluntarily, it will be controlled involuntarily by an increase in disease, starvation and war. …In the event that I am reincarnated, I would like to return as a deadly virus, in order to contribute something to solve overpopulation.

One should not make the mistake of separating Philip’s misanthropic statements with his active role in co-founding the global ecology movement alongside Bilderberg group founder Prince Bernhardt of the Netherlands. This includes their joint role as co-founders of the World Wildlife Club in 1961, their founding of the 1001 Nature Trust in 1970 or their joint management and funding of global climate science throughout the 20th century. As I outlined in my 2019 lecture, it was this organization that was caught red-handed organizing the murder and coverup of John F. Kennedy.

 

Prince Bernhard and Philip’s powerful lackey Maurice Strong (who served as WWF vice-president under Philip from 1976-78), let the cat out of the bag in a 1990 interview saying:

What if a small group of world leaders were to conclude that the principal risk to the Earth comes from the actions of the rich countries? And if the world is to survive, those rich countries would have to sign an agreement reducing their impact on the environment. Will they do it? The group’s conclusion is ‘no’. The rich countries won’t do it. They won’t change. So, in order to save the planet, the group decides: Isn’t the only hope for the planet that the industrialized civilizations collapse? Isn’t it our responsibility to bring that about?

This is exactly what Carney and his fellow central banking ideologues are talking about when they speak of “Green New Deals“.

The Failure of the Collective Green Suicide Pact

After five decades of tireless panic and propaganda, the oligarchy has had to conclude that this whole plan hasn’t really worked out too well. Many nations were more than a little reticent to shut down the basis of their existence just because some Malthusian technocrats said their computer models required it to be so.

Many inquiring minds noticed that those same computer models never proved in the first place that carbon dioxide actually causes temperature changes and others noticed that in longer waves of history, carbon dioxide actually follows temperature changes… implying that the true causes of climate change has less to do with CO2 and more to do with astrophysical effects like the sun and cosmic radiation (which recent studies by Professor Svensmark have proved seeds clouds and plays a much more direct role in shaping climate change than statisticians wish to admit).

Others were bothered by the fact that linear computer projections fail to take into account such non-linear processes as human creative reason and morality which allows mankind the freedom to leap beyond our “limits to growth” through the discovery of new principles in the universe and the application of those discoveries to the economy in the form of constant leaps in scientific and technological progress. Try as they might, linear models cannot map non-linearity (except in the form of logarithms that seek chaotic randomness in the form of a Jackson Pollack painting), but not real creative DIRECTED progress.

What made this “Controlled disintegration agenda” additionally frustrating was the rise of China’s Belt and Road Initiative which demonstrated what REAL nation states can accomplish when they want to get rid of pollution, raise their populations out of poverty and “go green” at the same time

In total opposition to the doomsday ‘predictive models’, China has lifted 800 million people out of poverty by forcing the monetary system to obey human needs rather than conforming to the statistical models used by the World Bank or IMF. China, Russia and other nations working within the BRI Framework have transformed the definition of “green” in recent years by investing massively into carbon free energy like 3rd and 4th generation nuclear power, fusion research, hydroelectricity and greening deserts. On this last point, NASA recently announced a surprising 10% increase of global biomass due entirely to China and India’s development strategies which not only bring water into deserts, but also produce carbon dioxide which plants and trees actually treat as… FOOD!

Then Trump got elected and the Malthusian de-carbonization goals collapsed even further as an America long held under the control of a deep state changed its character and in so doing, revived both a lost sense of nationalism while also rejecting green suicide under a technocratic global dictatorship.

So something new had to happen.

New Lipstick, Same Pig

Luckily, computer modelling doomsday scenarios are not hard to come by for British intelligence assets working through London’s Imperial College and Bank of England who settled on a new strategy… if only a virus could be blown into global pandemic proportions through a systemic skewing of data and centralized control of data management through the Michael Bloomberg School of Public Policy at Johns Hopkins and World Health Organization… then perhaps nations will finally learn how to shut down their economies.

After COVID-19 was announced as a global pandemic by the World Health Organization, the COVID-19 Response Team at London’s Imperial College wasted no time in using the same predictive modelling techniques that failed so miserably on climate catastrophe projections to begin forecasting end times scenarios for the coronavirus outbreak. March 17 models projected over 500 000 UK deaths and 2.2 million American deaths over the coming months. These numbers were quickly taken up by the WHO and spread across international media to justify the study’s “remedy” of a full “shut down of major aspects of society for over a year.” Despite the fact that these models were adjusted to predict only 20 000 UK deaths and 100 000 US deaths a week later, the calls to keep the world economy shut down for 12-18 months continued by Dr. Cauci, Gates, Soros and leading experts from the WHO, some of whom were caught on camera advocating breaking into homes to separate family members who have COVID.

For those paying attention, Michael Bloomberg isn’t only a famous billionaire corporatist who paid $500 million to get his ass kicked on public television, but is also Mark Carney’s green bosom buddy who acted as United Nations Special Envoy for Climate Change from 2018-2019 until Carney took over the position. Bloomberg also chairs Carney’s Task Force on Climate Related Financial Disclosures which is a keystone piece of the new green cathedral of anti-growth economics which will punish all “climate offending” companies by cutting them from credit while rewarding “green zero carbon” companies which accelerate human population collapse.

Bloomberg’s School of Public Health just so happened to co-sponsor the October 19, 2019 Global Pandemic Exercise Event 201 alongside the Bill Gates & Melinda Gates Foundation, and World Economic Forum which ran computer simulations under the theme of a novel coronavirus pandemic killing 60 million people. Over the years while taking over economic, foreign policy and environmental policies of formerly industrial advanced nations of the western alliance, the neo-Malthusian movement also took over medical research through a gradual co-opting of funding of the World Health Organization by private foundations which have increasingly replaced the role of nation over the past 4 decades.

Today the Bill and Melinda Gates Foundation has become the primary financier of the WTO (taking the top spot with Trump’s recent announcement of America’s exit from it’s supporting role). With their interests so intertwined with Big Pharma, and the Five Eyes intelligence agencies, medical practice and medical policy has been put firmly under the control of an elite cadre of “scientific experts” who play god with the human race in ivory towers “untouched by politics” beholden only to the cold hard numbers of ‘predictive models’.

Both Gates and Bloomberg are among the top five world billionaires who run “The Giving Pledge“– which is a foundation made up of “good” plutocrats who pledged to donate half their wealth to charities. What are billions after all, when you know the system you parasitically exploited is designed to collapse? As Carney stated last year, those “that anticipate these developments will be rewarded handsomelythose that fail to adapt will cease to exist.”

Those industrial interests whom Carney threatened in his speech include those “dirty” (see “productive”) agro-industrial interests who are generally unhappy about the idea of being sacrificed on the alter of Gaia and would rather join China’s multi-trillion dollar Belt and Road Initiative, as the crisis continues to move closer to the inevitable collapse of the $1.2 quadrillion bubble economy. As this future collapse point accelerates towards the present, the oligarchy knows that nations enmeshed in the west’s monetarist net will gladly jump into the Multipolar Alliance as an alternative to their total destruction if for no other reason.

The Multi-Polar Alliance Re-asserts the Hegemony of the Human Mind over Computer Modelling

The beauty of the new Multipolar Alliance guided by the associated Belt and Road Initiative Framework is this new system’s reliance upon the non-linearity of human creative thought. By defining future states of humanity not as a crisis caused by human cancer cells killing Gaia, the new system approaches the future from the standpoint of creative change. By investing in space exploration, asteroid defense, lunar mining, fusion and fission development and large-scale infrastructure the Multipolar Alliance is bringing mankind back into harmony with the demands for boundless scientific and technological progress within creation.

Speaking to the CPC central committee in 2016, President Xi said:

Coordinated development is the unity of balanced development and imbalanced development. The process from balance to imbalance and then to rebalance is the basic law of development. Balance is relative while imbalance is absolute. Emphasizing coordinated development is not pursuing equalitarianism, but giving more importance to equal opportunities and balanced resource allocation.

In an earlier speech, Xi developed this concept even further:

We must consider innovation as the primary driving force of growth and the core in this whole undertaking, and human resources as the primary source to support development. We should promote innovation in theory, systems, science and technology, and culture, and make innovation the dominant theme in the work of the Party, and government, and everyday activity in society… In the 16th century, human society entered an unprecedented period of active innovation. Achievements in scientific innovation over the past five centuries have exceeded the sum total of several previous millennia. . . . Each and every scientific and industrial revolution has profoundly changed the outlook and pattern of world development. . . . Since the second Industrial Revolution, the U.S. has maintained global hegemony because it has always been the leader and the largest beneficiary of scientific and industrial progress.

In a 2019 speech calling for Russia’s prioritization of fusion power as a replacement to the fossil fuel economy, President Putin expressed similar insights saying:

It may seem strange at first, but fusion energy, which in fact is similar to how heat and light are produced in our star, in the Sun, is an example of such nature-like technologies.

Potentially we can harness a colossal, inexhaustible and safe source of energy. However, we will only succeed in fusion energy and in solving other fundamental tasks if we establish broad international cooperation and interaction between government and business, and join the efforts of researchers representing different scientific schools and areas. If technological development becomes truly global, it will not be split up or reined in by attempts to monopolize progress, limit access to education and put up new obstacles to the free exchange of knowledge and ideas.. With their help, scientists will be able to literally see nature’s creation processes.

So when Putin or Xi come out calling for a new economic order to replace the currently collapsing one, this is the spirit of the system he is talking about. They are talking about a system that rejects ‘predictive modelling’ using linear equations in favor of the REALITY of human creative mentation as a non-linear YET intelligible geological force of change bringing humanity into ever greater harmony with the laws of creation.

Was the Fed Just Nationalized?

Did Congress just nationalize the Fed? No. But the door to that result has been cracked open.

Mainstream politicians have long insisted that Medicare for all, a universal basic income, student debt relief and a slew of other much-needed public programs are off the table because the federal government cannot afford them. But that was before Wall Street and the stock market were driven onto life-support by a virus. Congress has now suddenly discovered the magic money tree. It took only a few days for Congress to unanimously pass the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which will be doling out $2.2 trillion in crisis relief, most of it going to Corporate America with few strings attached. Beyond that, the Federal Reserve is making over $4 trillion available to banks, hedge funds and other financial entities of all stripes; it has dropped the fed funds rate (the rate at which banks borrow from each other) effectively to zero; and it has made $1.5 trillion available to the repo market.

It is also the Federal Reserve that will be picking up the tab for this bonanza, at least to start. The US central bank has opened the sluice gates to unlimited quantitative easing, buying Treasury securities and mortgage-backed securities “in the amounts needed to support smooth market functions.” Last month, the Fed bought $650 billion worth of federal securities. At that rate, notes Wall Street on Parade, it will own the entire Treasury market in about 22 months. As Minneapolis Fed President Neel Kashkari acknowledged on 60 Minutes, “There is an infinite amount of cash at the Federal Reserve.”

In theory, quantitative easing is just a temporary measure, reversible by selling bonds back into the market when the economy gets back on its feet. But in practice, we have seen that QE is a one-way street. When central banks have tried to reverse it with “quantitative tightening,” economies have shrunk and stock markets have plunged. So the Fed is likely to just keep rolling over the bonds, which is what normally happens anyway with the federal debt. The debt is never actually paid off but is just rolled over from year to year. Only the interest must be paid, to the tune of $575 billion in 2019. The benefit of having the Fed rather than private bondholders hold the bonds is that the Fed rebates its profits to the Treasury after deducting its costs, making the loans virtually interest-free. Interest-free loans rolled over indefinitely are in effect free money. The Fed is “monetizing” the debt.

What will individuals, families, communities and state and local governments be getting out of this massive bailout? Not much. Qualifying individuals will get a very modest one-time payment of $1,200, and unemployment benefits have been extended for the next four months. For local governments, $150 billion has been allocated for crisis relief, and one of the Fed’s newly expanded Special Purpose Vehicles will buy municipal bonds. But there is no provision for reducing the interest rate on the bonds, which typically runs at 3 or 4 percent plus hefty bond dealer fees and foregone taxes on tax-free issues. Unlike the federal government, municipal governments will not be getting a rebate on the interest on their bonds.

The taxpayers have obviously been shortchanged in this deal. David Dayen calls it “a robbery in progress.” But there have been some promising developments that could be harnessed for the benefit of the people. The Fed has evidently abandoned its vaunted “independence” and is now working in partnership with the Treasury. In some sense, it has been nationalized. A true partnership, however, would make the printing press available for more than just buying toxic corporate assets. A central bank that was run as a public utility could fund programs designed to kick-start the economy, stimulate productivity and generally serve the public.

Harnessing the Central Bank

The reason the Fed is now working with the Treasury is that it needs the Treasury to help it bail out a financial industry burdened with an avalanche of dodgy assets that are fast losing value. The problem for the Fed is that it is only allowed to purchase or lend against securities with government guarantees, including Treasury securities, agency mortgage-backed securities, debt issued by Fannie Mae and Freddie Mac, and (arguably) municipal securities. To get around that wrinkle, as Wolf Richter explains:

[T]he Treasury will create (or resuscitate) a series of special-purpose vehicles (SPVs) to buy all manner of financial assets, backed by $425 billion in collateral conveniently supplied by the US taxpayer via the Exchange Stabilization Fund. The Fed will lend to SPVs against this collateral which, when leveraged, could fund $4-5 trillion in asset purchases.

That includes municipal bonds, non-agency mortgages, corporate bonds, commercial paper, and every variety of asset-backed security. The only things the government can’t (transparently, yet) buy are publicly-traded stocks and high-yield bonds.

Unlike in QE, in which the Fed moves assets onto its own balance sheet, the Treasury will now be buying assets and backstopping loans through SPVs that the Treasury will own and control. SPVs are a form of shadow bank, which like all banks create money by “monetizing” debt or turning it into something that can be spent in the marketplace. The SPV decides what assets to buy and borrows from the central bank to do it. The central bank then passively creates the funds, which are used to purchase the assets backing the loan. As Jim Bianco wrote on Bloomberg:

In other words, the federal government is nationalizing large swaths of the financial markets. The Fed is providing the money to do it. BlackRock will be doing the trades. This scheme essentially merges the Fed and Treasury into one organization. …

In effect, the Fed is giving the Treasury access to its printing press. This means that, in the extreme, the administration would be free to use its control, not the Fed’s control, of these SPVs to instruct the Fed to print more money so it could buy securities and hand out loans in an effort to ramp financial markets higher going into the election.

Of the designated SPVs, none currently serves a public purpose beyond buoying the markets; but they could be designed for such purposes. The taxpayers are on the hook for replenishing the $425 billion in the Exchange Stabilization Fund, and they should be entitled to share in the benefits. Congress could designate a Special Purpose Vehicle to fund its infrastructure projects, and to fund those much-needed public services including Medicare for all, a universal basic income, student debt relief, and similar programs. It could also purchase a controlling interest in insolvent or profligate banks, pharmaceutical companies, oil companies and other offenders and regulate them in a way that serves the public interest.

Another possibility would be for Congress to fund these programs in the usual way by issuing government bonds, but to enter into a partnership agreement first by which the central bank would buy the bonds, roll them over indefinitely, and rebate the interest to the Treasury. That is how Japanese Prime Minister Shinzo Abe has funded his stimulus programs, with none of the predicted inflationary effects on consumer prices. In fact, the Japanese consumer price index is hovering at a very low 0.4%, well below even the central bank’s 2 percent target, although the Bank of Japan has monetized nearly half of the government’s debt. Half of the US debt would be over $11 trillion. Assuming $6 trillion for the current corporate bailouts, that means another $5 trillion could safely be monetized for programs benefiting individuals, families and local governments. (How to do this without driving up consumer prices will be the subject of another article.)

Relief for State and Local Governments

State and local governments, which are on the front lines for delivering emergency services, have for the most part been left out of the bailout bonanza. While we are waiting for action from Congress, the Fed could make cheap loans available to local governments using its existing powers under Federal Reserve Act Sec. 14(2)(b), which authorizes the Fed to purchase the bills, bonds, and notes of state and local governments having maturities of six months or less. Since local governments must balance their budgets, these loans would have to be repaid, but the loans could be extended by rolling them over for a reasonable period, as is done with repo loans and the federal debt; and the loans could be made at the same near-zero interest rate banks can borrow at now. State and local governments are at least as creditworthy as banks – they have a taxpayer base and massive assets. In fact, the private banking industry would have been insolvent long ago if it were not for the deep pocket of the central bank and the bailouts of the federal government, including the FDIC insurance scheme that rescued the banks from bankruptcy in the Great Depression.

There is a way state and local governments can take advantage of the near-zero interest rates available to banks even without federal action. They can set up their own publicly-owned banks. Besides giving them the ability to borrow much more cheaply, having their own banks would allow them to leverage their loan funds. A $100 million revolving fund issuing loans at 3% would gross the state $3 million per year. If that same $100 million were used to capitalize a bank, it could issue ten times that sum in loans, grossing $30 million per year. Costs would need to be deducted from those earnings, including the cost of funds; but the cost of funds is quite low for banks today. They can borrow to meet their liquidity needs from their own deposit pool, or at 0.25% in the fed funds market, or at about the same rate in the repo market, which is now backstopped by the central bank.

The blatant disparities in the congressional response to the current crisis have shone a bright light on how our financial system is rigged against the people in favor of a wealthy elite. Crisis is when change happens; this is the time for advocates to unite in demanding change on behalf of the people. As Greek economist Yanis Varoufakis admonished in a recent post:

[T]his new phase of the crisis is, at the very least, making it clear to us that anything goes – that everything is now possible.… Whether the epidemic helps deliver the good or the most evil society will depend … on whether progressives manage to band together. For if we do not, just like in 2008 we did not, the bankers, the spivs [petty criminals], the oligarchs and the neofascists will prove, again, that they are the ones who know how not to let a good crisis go to waste.

From Rags to Riches, from Plague to Profits

One of the lessons I recall from school was about the theory of spontaneous generation with regard to disease. Of course, there is the well-known phenomena of spontaneous combustion, when something starts to burn without any apparent external ignition. Spontaneous generation we were taught was the idea that something considered dirty or impure, like rags, could give inception to diseases. This was superseded by the germ theory, where microorganisms — that might actually be harboured by such rags — actually were the cause of the illnesses blamed on the rags.

In economics a similar theory still prevails.  It could be called spontaneous wealth. It was popularised in the US by stories like those of Horatio Alger, Jr.  It has also been called the “rags to riches” myth whereby under rather ambiguous conditions rags could also give inception to wealth. Although this has been superseded by other theories, whereby microeconomics — that might actually cause the production of such rags — actually caused the wealth originally attributed to the bearer/ wearer of said rags.

During the period of European peninsular history known as the Middle Ages, there was an outbreak of disease also called the Black Death, identified as bubonic plague. The result of the epidemic that swept through the peninsula was not only a reduction in the population but an increase in the cost of labour. Since the rich do not work, the scarcity of those who do meant that labour costs increased drastically, whether measured in wages or weaponry to acquire forced labour.

Fast forward to 2020. China appears close to controlling, if not eliminating, the residue of baggage left behind by abusive visitors. These might have been borne in rags, but certainly not in dead bats. As has been argued elsewhere, the response of the PRC leadership, the Chinese Communist Party, was commensurate with the intended threat and reflects government policies since Mao and Deng that are diametrically opposite to those of the US, EU and its vassals.

While the mass media in the West — both state-held and privately owned — has continuously attacked China for its reactions to anything the West does to it, the fact remains that such attacks serve to reinforce the prejudices and ignorance promoted by the China Lobby after it was evicted from the mainland seventy years ago. Not only does the 80% US-controlled mass media feed upon two centuries of cultivated racism, it also distorts history beyond recognition—with ease given the general ignorance of accurate history fostered in Western schools and universities, where Forrest Gump has become the standard.

The central economic doctrines foisted on the post-WWII world by the Anglo-American establishment could be summarised as “socialism for corporations” and “private enterprise for everyone else”. It would exceed the scope of this comment to explain all the silliness that has become economics orthodoxy in the West. However, it is important to recognise that the argument I make here is not from a “Marxist” perspective. Rather it is a sober restatement of the policies adopted, in fact, by the oligarchy that runs the West and the world financial system too. The so-called Great War, great for firms like DuPont, J P Morgan, et al., was followed by the Great Depression primarily to force states to return to the system by which profits of 40-100%, as were made during that war, would again be possible.1

The Great Depression only ended once these folks has a major war against the Soviet Union and to conquer Asia under way. George Kennan wrote sincerely or cynically at the end of World War II that only military force exercised worldwide would guarantee the profits and US access to 60% of the world’s resources after 1945.2 This meant war in the Congo, war against Korea, war against Vietnam and the overthrow of independent governments from Indonesia to Iraq, not to mention an iron fist in Latin America. It is a testimony to that very 80% of the US-controlled world media that this was all called a “Cold War” and blamed first on the Soviet Union and then on China. This slander persists today when Europeans and North Americans blame Russia and China for all the violence and destruction perpetrated by NATO since 1989.

Permit me to return to our “economics”. Elsewhere I have explained the persistent tubercular myth called the American Dream, the result of trillions spent since 1916 to create a popular vision of America only rivalled by the Catholic Church’s vision of the Resurrection3. (At least the Resurrection does not depend on Hollywood or whatever sock puppet occupies the W**** House.)

There is a lot of needless debate about the motives and intentions of possible actors in the lead-up to what has obviously been well described by the “experts” at Johns Hopkins University Center for Health Security October last. As I wrote in February the “cause” of the present global calamity is deniable. There will never be an admission nor unimpeachable “broken vial” or saliva-saturated handkerchief to prove the author(s) of the contagion known as novel corona virus or COVID-2019. The “cause” cannot be the point of departure.

It is necessary to recognise first of all that this is not a medical problem! Moreover we must recognise that the institutions that have positioned themselves since October as authorities are not medical experts nor is their central mission — despite nomenclature — human health and well-being. The US CDC and the WHO bureaucracies are extensions of the Western corporate and state intelligence apparatus. One must understand that “health security” in practice and in the language used is just a mutation of “national security”. It is a part of what US doctrine calls “full spectrum dominance”.4

Why do I say that? I have no privileged information. However, if one reads the official biographies of the key persons in the WHO, for instance, detailed with handling the novel corona event, one will find that they are all directly concerned with vaccination/ inoculation. This is their career path. This is hierarchical militarised science at its worst.

Vaccination/ inoculation is an industrial-chemical value chain; in other words, it is the biological warfare equivalent to the career path for those who serve in the armed forces and develop other weapons systems. Vaccination/ inoculation has nothing to do with public health, per se. Rather public health is the battlefield/ battlespace in which population control operations are conducted — since 2020 globally.

For over 30 years in Europe, and as permanent policy in the US, what the US regime calls “socialised medicine” has been vigorously attacked. The most aggravated form now pursued is so-called “individualised medicine”: an approach which aims to use genetic engineering to restrict any kind of medical treatment by creating disease-treatment combinations which can only be used exclusively for one individual. It does not take much fantasy, just a little legal knowledge, to understand that the individual caught in the grips of such a medical model will be entirely dependent upon the intellectual property held by the disease-treatment delivery firm. This would end the threat of every pharmaceutical company’s horror — expiry of the patent and cheap generics.

As a result of this international corporate onslaught — supported overtly and covertly — public hospitals, state health services, statutory health insurers, GPs and other medical practitioners bound to the state-sponsored/ managed remuneration systems have been deliberately and maliciously destroyed or handicapped beyond the capacity to do more than issue prescriptions and administer injections. Nurses and physicians who chose medicine not for maximum profits but because they felt committed to the profession of healing the sick have been driven into bankruptcy or unemployment. Those from the professional classes who have only sought the best income for the least effort have prospered, albeit only if they became full merchants rather than physicians.

Hospitals have been privatised both as a means of undermining social services, per se, and on the pretext of solving municipal and state indebtedness foisted upon governments by criminal banking cartels infesting the finance ministries and the central banks. Since cartels are not taxed realistically but as if they were ordinary enterprises, there has been a “purification” of the economy, just like under the Weimar and NS regimes. In addition to an inadequate tax base, the other income sources of the State have been depleted by sales — privatisation of assets that generated rents and user fees. Now all that income accrues to the bondholders in whose hands the State and its citizens are now in thrall.

This is obviously just a sketch. Whoever has done their homework over the years and read the public sources and listened carefully to what is said and watched what was done, cannot take any statements made by the EU, the governments in the member-states, or in the US seriously. Even if the dragon corona were slain by the St. Georges and Georginas, we would still be stuck with their malicious policies of the past thirty years. If tomorrow every alleged corona patient were healed — like the sudden recovery of everyone in Saramago’s Blindness — we would have the same insipid parasitical and militarised full spectrum dominance of our demolished public healthcare infrastructure!5

That is definitely very different from the situation in which China finds itself. Over the past 70 years, the Chinese and the Chinese Communist Party have worked against all odds to put 20% of the world’s population in a condition which the US regime has spent all its energy denying, even to its own working people. There are lots of long-noses who will say — oh, but what about human rights, etc… Those folks ought to ask about the human rights of the Blacks, Mexicans, Asians and poor whites who have been systematically deprived of rights like housing, jobs, healthcare, pensions, relief from police brutality, freedom to express their views and defend themselves at the workplace etc. Those folks ought to ask why the US, for example, has the largest prison population in the world? But that too is beyond the scope of this comment.

Thinking, caring, human beings have to stop their senseless panicking and blind obedience to whatever messages they receive in their solipsistic social media. We have to recognise that this is not a pandemic but a political crisis. The crisis is not medical, it is mental!

Since the first governments in Europe decided to follow siege methods and to police the population, quite accidentally preventing public demonstrations or any meetings of popular organisations, the very effective propaganda already described has led people to forget very important questions:

  • Who decides in our society what the acceptable relationship between health risks and overall social risks: economic, political, sociability, etc. is? And what measures are appropriate to take this relationship into account?
  • Who defines what the objectives of any health prevention policy are?
  • When has enough been done? Who decides that?
  • What kind of public social, health and economic policy is to be pursued now and after this calamity?

Under the present conditions the vast majority of the population on the European peninsula and in North America have surrendered their political and social capacity to the national security state, to soldiers dressed in surgical gowns, wearing stethoscopes or masks like pre-schoolers. The “white” EU leaders of the North; e.g., Macron and Merkel, have made it quite clear that their “brown” brothers and sisters will only get aid if they refrain from working with China and Russia and are willing to pledge even more of their income streams to the banks for which Brussels, Berlin, Paris, Vienna, The Hague, and Helsinki most happily work. It should be clear to all that the token financial relief fed now is symbolic and divisive.

It is symbolic because these grants; e.g., up to EUR 9,000 for small businesses in Germany, feign an active response while the purification of small and medium sized enterprises continues.6 Selective awards now will divide the victims of the ludicrous large-scale closures into those who got some subsidy and those who will get nothing but unemployment. The psychological tactic will divide those who believe they are worthy from those who deserve to fail. It is also symbolic because every member-state knows that they cannot monetise their aid. They will have to finance it within the Maastricht regulations administered through Brussels on behalf of those who own the West’s central banks.7 That means that any further aid—and massive aid will be necessary Europe-wide—can only be financed by more privatisation and a conversion to what Macron advocates—tax farming via Brussels. Two hundred years ago the owners of the British East India Company destroyed India by the same crimes.8

In August 1914, what Barbara Tuchmann so prosaically called the “guns of August” began to fire.9 What Pauwel later called The Great Class War began — it was to be over by Christmas.10 By 1921, some fifty million were dead, almost as many as Event 201 assumed in its little plan game. A century of organising the labouring classes ended in the West. Not the scarcity of labour was the problem, but the scarcity of life itself among labourers was the result.

We find ourselves a herd of deer, caught in the blinding headlamps of the great armoured car racing down the road, having shot out all the streetlamps with its top-mounted MG. Not one is able to drive them across the road and away from the crushing steel plate under which their bones and flesh will be melded into the slowly cooling tar of one hot summer’s day.

  1. Gerald Colby-Zilg.  DuPont Dynasty: Behind the Nylon Curtain, 1974.
  2. Cold war ideology, formulated by Bernard Baruch, Walter Lippmann, and Winston Churchill leads most attention to Kennan’s article in Foreign Affairs about the Soviet threat. His more sincere work comprised the papers leading to the draft of NSC 68.
  3. T.P. Wilkinson. Rethinking Anglo-American Empire, Dissident Voice,  October 21st, 2017; To the Halls of Montezuma, from the Shores of Tripoli:  Donald Trump as “Anti-Wilson“, February 6th, 2017.
  4. “The cumulative effect of dominance in the air, land, maritime, and space domains and information environment, which includes cyberspace, that permits the conduct of joint operations without effective opposition or prohibitive interference.“ See also Joint Vision 2020, US Department of Defence, although this doctrine was pronounced much earlier with the so-called Global War on Terror and derived from the Project for the New American Century.
  5. Jose Saramago, Blindness, (1995). To see the entire problem as presciently as Saramago did the sequel Seeing (2006) is a must.
  6. Franz Neumann, Behemoth, Part 2 (1942) details the economic policy of Germany from Weimar through the NS era. “Purification” in the German edition “auskämmen” was the strategy of Germany’s cartels together with the quasi-governmental industry and commerce chambers to prohibit workers from running small craft and trade shops. These small businesses helped many who were hit by the depression to survive wage and hour cuts and maintain union organisation in heavy industry. When they were prohibited by withdrawal of their business licenses on “efficiency” grounds, then they joined the unemployed — allowing industrial cartels to more aggressively lower wages and increase hours. This policy has been pursued by the German tax administration for years now by means of discriminatory auditing and refusal to defer tax assessments—while granting large corporations tax holidays.
  7. For those that do not recall, the Maastricht regime prohibits member-states from public borrowing in excess of limits set by the European Commission (in fact, the banks that control it). Within the euro, the European Central Bank decides how much money—in euros—may be circulated at under what conditions. All governments are prohibited from issuing their own debt to cover their public expenditure—they must cover public expenditure by floating debt on the private capital markets (also controlled by said banks). Any similarity between the heads or senior officials of major European central banks or finance ministers and alumni of either Goldman Sachs or Rothschild Group is merely coincidental.
  8. Nick Robbins. The Corporation that Changed the World: How the East India Company Shaped the Modern Multinational, 2006.
  9. Barbara Tuchmann. The Guns of August, 1962.
  10. T.P. Wilkinson. “Romanticism and War”: Contextualising a Theory of Interpretation, Dissident Voice, September 15, 2016.

Trillions in Disaster Relief for Corporations and Banks, Spare Change for the People, Hospitals, Small Businesses, State and Local Governments

Our doctors and nurses are being thoroughly mobilized and worked to limit… Many cases receive no attention at all.

— Acting Governor Calvin Coolidge, Massachusetts, 9/25/1918

Some things never change. When it come to the unhappy conjunction between corporate capitalism, greed and pandemic — be it 1918 or 2020 the U.S. response to a health emergency is underwhelming. On March 26, 2020 with over 3.3 million Americans out of work and applying for unemployment, wondering how they are going to pay their rent, the mortgage, their credit cards bills and student loans, the Senate has unanimously passed a bailout bill giving corporations access to trillions of dollars with no strings attached. This is Round 2 of the corporate enrichment program masquerading as pandemic relief for the people.

Round 1 occurred in 2008 when Obama rescued the banks from a disaster caused by their own greed and incompetence and nearly 10 million innocent Americans lost their homes to foreclosure. Obama’s plan distributed virtually free money with no oversight to the banks. Via stock buybacks, hefty bonuses and huge shareholder dividends, they became “too big to fail.” The jobs they had paid lip service to creating never materialized.

Twelve years later, with the Republicans in charge, the same fleecing of the American people is underway. The media-hyped relief bill advertised as a $2.2 trillion stimulus for desperate Americans is actually an opportunity for corporations and banks to loot the treasury. Larry Kudlow, Trump’s chief economic adviser, made no bones about it in a press conference on Fox News — “The total package here comes to $6 trillion. $2 trillion direct assistance, roughly $4 trillion in federal reserve lending power.” Economic jargon be damned, that $4 trillion in federal reserve lending power is a multi-trillion-dollar basketful of goodies for tycoons that run the biggest U.S. banks and corporations. And that may not be the end of the raid on the public purse. Several respected economists predict that $4 trillion will eventually morph into $6 or $8 trillion.

“An abomination beyond comprehension” — that how one former TV host and progressive activist, Dylan Ratigan described it. As it was in (2008) and is now (2020), we are seeing an upward distribution of wealth handed over to corporations and banks while real pandemic relief for suffering Americans, for a disintegrating public health system, short-of-cash cities and states and desperate small businesses is dribbled out of a much smaller pie.

The enormity of the corporate bail out is breathtaking. Trump and his cronies in the administration and Congress (including most Democrats) are applying a huge band aid to the self-inflicted harm that twelve years of corporate buybacks and investor dividends have wrought. Many corporations are so strapped for cash that even a few weeks of lost economic activity threatens their viability. That’s why the foreclosure king Steve Mnuchin, who if there were any justice for the wealthy in the U.S. would be occupying a jail cell rather than a cushy seat as the Treasury Secretary and his homeboys at the Fed cooked up a scheme to store $4.3 trillion at the Federal Reserve, a made-to-order ATM that large corporations and banks can access with almost no strings attached. To make sure their greed and irresponsibility put them in the hole again, the ever-obliging Fed will soak up any losses using your tax dollars.

The game is rigged. They can’t lose but you can. After your one-time means-tested relief check comes in, after the paltry enlargement of your unemployment check, what then? You won’t be sitting pretty feasting on $4 trillion of zero interest loans which if history is any guide will quietly be forgiven down the road. What about the twenty-seven million small business which create two-thirds of new jobs in the U.S? Their share of the relief package is a measly $300 billion and they are persona non grata at the Federal Reserve trough where trillions are parked. Their only recourse is to squeeze money out of that dysfunctional agency known as the SBA (Small Business Administration) which will control the disbursement of the $300 billion. Many small businesses unable to keep their businesses afloat will eventually become sitting ducks for large corporations with trillions in bailout money. Here’s Jim Cramer, host of a CNBC show and a long-time cheerleader of corporate welfare, inadvertently (we presume) letting the cat out of the bag:

If we come out of this sooner, then other, small businesses can open. If we come out of this later, there are going to be three retailers in this country. There’s going to be Amazon. There’s going to be Walmart. And there’s going to be Costco. Can you imagine what it means for this country to just have three retailers?

Surely progressive leaders in the House and Senate discerned the grotesquely unfair allotment of resources in this ironically-named Cares Act. Not Bernie Sanders who, after a little grandstanding rhetoric— “I am very, very, very concerned about 500-billion-dollars that will go out to the corporate world without…the accountability or transparency that is needed. We do not need at this moment in history a massive amount of corporate welfare to large profitable corporations…” voted yes.

If Bernie had bothered to read the bill, he would have seen the not $500 billion, but $4 trillion worth of pork larding a mere $2 trillion dollars of real pandemic relief. Maybe he fears losing his senatorial privileges if he does anything more than spout moralistic aphorisms He had plenty of company as clueless as he was. The entire Senate lined up to do the bidding of the lords of the universe. That included those self-described progressive senators who were either too craven, too corrupt or too cowardly to use their leverage (the bill required 60 votes) to block the bill as written and demand changes that would prioritize the needs of hospitals, local and state governments, small businesses and the American people. Instead they followed the Pied Piper-in-chief and his loyal band of Republican co-conspirators into the swampy waters of corporate plunder and voted Yes.

In the House the fix was solidly in. Choosing the cowards way out, representatives settled for a voice vote to avoid going on the record. Only one representative even bothered to register a (small) protest after which amazingly she voted for the bill.

Hospital workers do not have protective equipment. We don’t have the necessary ventilators…. What did the Senate majority fight for? One of the largest corporate bailouts, with as few strings as possible, in American history—shameful. The option that we have is to either let [families] suffer with nothing or to allow this greed of billions of dollars, which will be leveraged into trillions of dollars, to contribute to the largest income-inequality gap in our future… (Alexandria Ocasio-Cortes)

Of course, it wasn’t meant to and didn’t change a single vote of this bunch of corporate tools. Small comfort to know that Trump and Congress didn’t get the whole enchilada. The original bill contained a provision to keep their dirty dealings secret for six months. That provision was later removed.

What a fall from grace. A country shut down, becoming the epicenter of the world’s confirmed coronavirus cases, Americans dying from gross shortages of life-saving equipment — ventilators, ICU beds, and test kits. Lack of protective equipment Incapacitating or killing healthcare workers by the dozens. This is not the time to equate pandemic relief with a trillion-dollar payday for corporations and banks. Too many Americans are scared and hurting and dying. Remember that when you decide this Fall who will represent you in Congress and try to pick the best from what is guaranteed to be a bad lot.

How to Crush a Bankers’ Dictatorship: A Lesson from 1933

Amidst the current hysteria of the covid-19 pandemic, talk of general chaos and economic collapse have taken the forefront of peoples’ minds.

Increasingly over recent months, western media has been hit with warnings of “financial Armageddon” and the need for a “global hegemonic synthetic currency” to replace the collapsing US dollar under a new system of green finance. These statements have been made by former and current Bank of England Governors Mark Carney and Mervyn King respectively and should not be ignored as the world sits atop the largest financial bubble in human history reminiscent of the 1929 bubble that was triggered on black Friday in the USA which unleashed a great depression across Europe and America.

While I’m not arguing that a systemic change is not vital to protect people from the effects of a general meltdown of the $1.2 trillion derivatives bubble sometimes called “the western banking system”, what such central bankers are proposing is a poison more deadly than the disease they promise to cure.

In principle, the world crisis is no different from the artificially manufactured crises which the world faced in 1923 when unpayable Versailles debts were heaved onto a beaten Germany, which I elaborated upon in my previous report. It is also no different from the nature of the folly that unleashed unbounded speculation during the “roaring 1920s” which led to the bank-run and general meltdown. Similarly, the solutions being proposed to put out the fire by those same arsonists who lit the matches today are identical to what the world faced in 1933 as a “central bankers” solution for the world depression.

How the 1929 Crash was Manufactured

While everyone knows that the 1929 market crash unleashed four years of hell in America which quickly spread across Europe under the great depression, not many people have realized that this was not inevitable, but rather a controlled blowout.

The bubbles of the 1920s were unleashed with the early death of President William Harding in 1923 and grew under the careful guidance of JP Morgan’s President Coolidge and financier Andrew Mellon (Treasury Secretary) who de-regulated the banks, imposed austerity onto the country, and cooked up a scheme for Broker loans allowing speculators to borrow 90% on their stock. Wall Street was deregulated, investments into the real economy were halted during the 1920s and insanity became the norm. In 1925 broker loans totalled $1.5 billion and grew to $2.6 billion in 1926 and hit $5.7 billion by the end of 1927. By 1928, the stock market was overvalued fourfold!

When the bubble was sufficiently inflated, a moment was decided upon to coordinate a mass “calling in” of the broker loans. Predictably, no one could pay them resulting in a collapse of the markets. Those “in the know” cleaned up with JP Morgan’s “preferred clients”, and other financial behemoths selling before the crash and then buying up the physical assets of America for pennies on the dollar. One notable person who made his fortune in this manner was Prescott Bush of Brown Brothers Harriman, who went on to bailout a bankrupt Nazi party in 1932. These financiers had a tight allegiance with the City of London and coordinated their operations through the private central banking system of America’s Federal Reserve and Bank of International Settlements.

The Living Hell that was the Great Depression

Throughout the Great depression, the population was pushed to its limits making America highly susceptible to fascism as unemployment skyrocketed to 25%, industrial capacity collapsed by 70%, and agricultural prices collapsed far below the cost of production accelerating foreclosures and suicide. Life savings were lost as 4000 banks failed.

This despair was replicated across Europe and Canada with eugenics-loving fascists gaining popularity across the board. England saw the rise of Sir Oswald Mosley’s British Union of Fascists in 1932, English Canada had its own fascist solution with the Rhodes Scholar “Fabian Society” League of Social Reconstruction (which later took over the Liberal Party) calling for the “scientific management of society”. Time magazine had featured Il Duce over 6 times by 1932 and people were being told  that corporate fascism was the economic solution to all of America’s economic woes.

In the midst of the crisis, the City of London removed itself from the gold standard in 1931 which was a crippling blow to the USA, as it resulted in a flight of gold from America causing a deeper contraction of the money supply and thus inability to respond to the depression. British goods simultaneously swamped the USA crushing what little production was left.

It was in this atmosphere that one of the least understood battles unfolded in 1933.

1932: A Bankers’ Dictatorship is Attempted

In Germany, a surprise victory of Gen. Kurt Schleicher caused the defeat of the London-directed Nazi party in December 1932 threatening to break Germany free of Central Bank tyranny. A few weeks before Schleicher’s victory, Franklin Roosevelt won the presidency in America threatening to regulate the private banks and assert national sovereignty over finance.

Seeing their plans for global fascism slipping away, the City of London announced that a new global system controlled by Central Banks had to be created post haste. Their objective was to use the economic crisis as an excuse to remove from nation states any power over monetary policy, while enhancing the power of Independent Central Banks as enforcers of “balanced global budgets”.

In December 1932, an economic conference “to stabilize the world economy” was organized by the League of Nations under the guidance of the Bank of International Settlements (BIS) and Bank of England. The BIS was set up as “the Central Bank of Central Banks” in 1930 in order to facilitate WWI debt repayments and was a vital instrument for funding Nazi Germany long after WWII began. The London Economic Conference brought together 64 nations of the world under a controlled environment chaired by the British Prime Minister and opened by the King himself.

A resolution passed by the Conference’s Monetary Committee stated:

The conference considers it to be essential, in order to provide an international gold standard with the necessary mechanism for satisfactory working, that independent Central Banks, with requisite powers and freedom to carry out an appropriate currency and credit policy, should be created in such developed countries as have not at present an adequate central banking institution” and that “the conference wish to reaffirm the great utility of close and continuous cooperation between Central Banks. The Bank of International Settlements should play an increasingly important part not only by improving contact, but also as an instrument for common action.

Echoing Carney’s current fixation with “mathematical equilibrium”, the resolutions stated that the new global gold standard controlled by central banks was needed “to maintain a fundamental equilibrium in the balance of payments” of countries. The idea was to deprive nation states of their power to generate and direct credit for their own development.

FDR Torpedoes the London Conference

Chancellor Schleicher’s resistance to a bankers’ dictatorship was resolved by a “soft coup” ousting the patriotic leader in favor of Adolph Hitler (under the control of a Bank of England toy named Hjalmar Schacht) in January 1933 with Schleicher assassinated the following year. In America, an assassination attempt on Roosevelt was thwarted on February 15, 1933 when a woman knocked the gun out of the hand of an anarchist-freemason in Miami resulting in the death of Chicago’s Mayor Cermak.1

Without FDR’s dead body, the London conference met an insurmountable barrier, as FDR refused to permit any American cooperation. Roosevelt recognized the necessity for a new international system, but he also knew that it had to be organized by sovereign nation states subservient to the general welfare of the people and not central banks dedicated to the welfare of the oligarchy. Before any international changes could occur, nation states castrated from the effects of the depression had to first recover economically in order to stay above the power of the financiers.

By May 1933, the London Conference crumbled when FDR complained that the conference’s inability to address the real issues of the crisis is “a catastrophe amounting to a world tragedy” and that fixation with short term stability were “old fetishes of so-called international bankers”. FDR continued “The United States seeks the kind of dollar which a generation hence will have the same purchasing and debt paying power as the dollar value we hope to attain in the near future. That objective means more to the good of other nations than a fixed ratio for a month or two. Exchange rate fixing is not the true answer.”

The British drafted an official statement saying “the American statement on stabilization rendered it entirely useless to continue the conference.”

FDR’s War on Wall Street

The new president laid down the gauntlet in his inaugural speech on March 4th saying:

The money-changers have fled from their high seats in the temple of our civilization. We may now restore that temple to the ancient truths. The measure of the restoration lies in the extent to which we apply social values more noble than mere monetary profit.

FDR declared a war on Wall Street on several levels, beginning with his support of the Pecorra Commission which sent thousands of bankers to prison, and exposed the criminal activities of the top tier of Wall Street’s power structure who manipulated the depression, buying political offices and pushing fascism. Ferdinand Pecorra, who ran the commission, called out the deep state when he said “this small group of highly placed financiers, controlling the very springs of economic activity, holds more real power than any similar group in the United States.”

Pecorra’s highly publicized success empowered FDR to impose sweeping regulation in the form of 1) Glass-Steagall bank separation, 2) bankruptcy re-organization and 3) the creation of the Security Exchange Commission to oversee Wall Street. Most importantly, FDR disempowered the London-controlled Federal Reserve by installing his own man as Chair (Industrialist Mariner Eccles) who forced it to obey national commands for the first time since 1913, while creating an “alternative” lending mechanism outside of Fed control called the Reconstruction Finance Corporation (RFC) which became the number one lender to infrastructure in America throughout the 1930s.

One of the most controversial policies for which FDR is demonized today was his abolishment of the gold standard. The gold standard itself constricted the money supply to a strict exchange of gold per paper dollar, thus preventing the construction of internal improvements needed to revive industrial capacity and put the millions of unemployed back to work for which no financial resources existed. Its manipulation by international financiers made it a weapon of destruction rather than creation at this time. Since commodity prices had fallen lower than the costs of production, it was vital to increase the price of goods under a form of “controlled inflation” so that factories and farms could become solvent and unfortunately the gold standard held that back. FDR imposed protective tariffs to favor agro-industrial recovery on all fronts ending years of rapacious free trade.

FDR stated his political-economic philosophy in 1934:

The old fallacious notion of the bankers on the one side and the government on the other side, as being more or less equal and independent units, has passed away. Government by the necessity of things must be the leader, must be the judge, of the conflicting interests of all groups in the community, including bankers.

The Real New Deal

Once liberated from the shackles of the central banks, FDR and his allies were able to start a genuine recovery by restoring confidence in banking. Within 31 days of his bank holiday, 75% of banks were operational and the FDIC was created to insure deposits. Four million people were given immediate work, and hundreds of libraries, schools and hospitals were built and staffed, all funded through the RFC. FDR’s first fireside chat was vital in rebuilding confidence in the government and banks, serving even today as a strong lesson in banking which central bankers don’t want you to learn about.

From 1933-1939, 45 000 infrastructure projects were built. The many “local” projects were governed, like China’s Belt and Road Initiative today, under a “grand design” which FDR termed the “Four Quarters” featuring zones of mega-projects such as the Tennessee Valley Authority area in the south east, the Columbia River Treaty zone on the northwest, the St Laurence Seaway zone on the North east, and Hoover Dam/Colorado zone on the Southwest. These projects were transformative in ways money could never measure as the Tennessee area’s literacy rose from 20% in 1932 to 80% in 1950, and racist backwater holes of the south became the bedrock for America’s aerospace industry due to the abundant and cheap hydropower.

Wall Street Sabotages the New Deal

Those who criticize the New Deal today ignore the fact that its failures have more to do with Wall Street sabotage than anything intrinsic to the program. For example, JP Morgan tool Lewis Douglass (U.S. Budget Director) forced the closure of the Civil Works Administration in 1934 resulting in the firing of all 4 million workers.

Wall Street did everything it could to choke the economy at every turn. In 1931, NY banks’ loans to the real economy amounted to $38.1 billion which dropped to only $20.3 billion by 1935. Where NY banks had 29% of their funds in US bonds and securities in 1929, this had risen to 58% which cut off the government from being able to issue productive credit to the real economy.

When, in 1937, FDR’s Treasury Secretary persuaded him to cancel public works to see if the economy “could stand on its own two feet”, Wall Street pulled credit out of the economy collapsing the Industrial production index from 110 to 85 erasing seven years’ worth of gain, while steel fell from 80% capacity back to depression levels of 19%. Two million jobs were lost and the Dow Jones lost 39% of its value. This was no different from kicking the crutches out from a patient in rehabilitation and it was not lost on anyone that those doing the kicking were openly supporting Fascism in Europe. Bush patriarch Prescott Bush, then representing Brown Brothers Harriman, was found guilty for trading with the enemy in 1942!

Coup Attempt in America Thwarted

The bankers didn’t limit themselves to financial sabotage during this time, but also attempted a fascist military coup which was exposed by Maj. Gen. Smedley Butler in his congressional testimony of November 20, 1934. Butler had testified that the plan was begun in the Summer of 1933 and organized by Wall Street financiers who tried to use him as a puppet dictator leading 500 000 American Legion members to storm the White House. As Butler spoke, those same financiers had just set up an anti-New Deal organization called the American Liberty League which fought to keep America out of the war in defense of an Anglo-Nazi fascist global government which they wished to partner with.

The American Liberty league only changed tune when it became evident that Hitler had become a disobedient Frankenstein monster who wasn’t content in a subservient position to Britain’s idea of a New World Order. In response to the Liberty League’s agenda, FDR said “some speak of a New World Order, but it is not new and it is not order”.

FDR’s Post-War Vision Destroyed

While FDR’s struggle did change the course of history, his early death during the first months of his fourth term resulted in a fascist perversion of his post-war vision.

Rather than see the IMF, World Bank or UN used as instruments for the internationalization of the New Deal principles to promote long term, low interest loans for the industrial development of former colonies, FDR’s allies were ousted from power over his dead body, and they were recaptured by the same forces who attempted to steer the world towards a Central Banking Dictatorship in 1933.

The American Liberty League spawned into various “patriotic” anti-communist organizations which took power with the FBI and McCarthyism under the fog of the Cold War. This is the structure that Eisenhower warned about when he called out “the Military Industrial Complex” in 1960 and which John Kennedy did battle with during his 900 days as president.

The New Silk Road as the 21st Century New Deal

This is the structure which is out to destroy President Donald Trump out of fear that a new FDR impulse is beginning to be revived in America which may align with the 21st Century international New Deal emerging from China’s Belt and Road Initiative and Eurasian alliance. French Finance Minister Bruno LeMaire and Marc Carney have stated their fear that if the Green New Deal isn’t imposed by the west, then the New Silk Road and yuan will become the basis for the new world system.

The Bank of England-authored Green New Deal and Synthetic Hegemonic Currency which promise to impose draconian constraints on humanity’s carrying capacity in defense of saving nature from humanity have nothing to do with Franklin Roosevelt’s New Deal and they have less to do with the Bretton Woods conference of 1944. These are merely central bankers’ wet dreams for depopulation and fascism “with a democratic face” which their 1933 conference failed to achieve and can only be imposed if people remain blind to their own recent history.

• First published at Strategic Culture Foundation

  1. Zingara was labeled a “lone gunman” and promptly executed before any proper investigation could be done.