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LaRouche in Berlin Exposes Synarchist Enemies of The United States

LaRouche in Berlin Exposes Synarchist Enemies of The United States

LaRouche in Berlin Exposes Synarchist Enemies of The United States

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Lyndon H. <strong>LaRouche</strong>, Jr.We Need a NewBretton Woods To Defeat<strong>The</strong> Evil <strong>of</strong> GlobalizationHere is the keynote address <strong>of</strong> Lyndon <strong>LaRouche</strong> to theJune 27 EIR sem<strong>in</strong>ar <strong>in</strong> Berl<strong>in</strong>.In this period <strong>of</strong> time, we’re <strong>in</strong> a world crisis withoutparallel. <strong>The</strong>re’s no comparison to this <strong>in</strong> Europeanhistory, s<strong>in</strong>ce the 14th Century New Dark Age, towhat we’re fac<strong>in</strong>g now. All the th<strong>in</strong>gs s<strong>in</strong>ce then, <strong>in</strong>terms <strong>of</strong> crises <strong>in</strong> European experience, have been lesscrucial than was the case <strong>in</strong> the 14th-Century New DarkAge.But that New Dark Age is also a benchmark.Because, to understand the crisis we have today, and tounderstand how the solution must be designed, wemust understand why a New Dark Age struck Europe <strong>in</strong>the 14th Century, to be prepared for the new dark agewhich is, right now, descend<strong>in</strong>g upon the entire world.<strong>The</strong>re are solutions for this problem. But you have tounderstand the rules <strong>of</strong> the game, by which solutionswork out.So that, when people talk about “New BrettonWoods”—many people talk about it. But even the gentlemanfrom Iran who recently wrote on this subject,and then asked, “Well, what do you mean by ‘NewBretton Woods’?”—that is a very good question.Because, New Bretton Woods signifies that, at the end<strong>of</strong> World War II, the President <strong>of</strong> the <strong>United</strong> <strong>States</strong>,Frankl<strong>in</strong> Roosevelt, established a monetary system, afixed-exchange-rate monetary system, without whichthe world would not have recovered from the effects <strong>of</strong>World War II. This monetary system was crucial.Now, the <strong>in</strong>tention <strong>of</strong> the orig<strong>in</strong>al Bretton Woodssystem, by Roosevelt, and the conduct <strong>of</strong> the BrettonWoods policy by his successor Truman, were two oppositeconceptions, united by one common feature, a temporary,fixed-exchange-rate monetary system.Roosevelt was an American; Truman was really not.He was born <strong>in</strong> the <strong>United</strong> <strong>States</strong>, but it was like a diseasethat <strong>in</strong>fected us—he was not really a goodAmerican.Roosevelt was committed to overturn<strong>in</strong>g the policies<strong>of</strong> the <strong>United</strong> <strong>States</strong> from the assass<strong>in</strong>ation <strong>of</strong> onePresident [McK<strong>in</strong>ley]; the <strong>in</strong>auguration <strong>of</strong> TeddyRoosevelt; the <strong>in</strong>auguration <strong>of</strong> another fascist,Woodrow Wilson; the <strong>in</strong>auguration <strong>of</strong> fools—Coolidgewas an evil fool; Hoover who was not a fool, but whowas corrupt. So, the <strong>United</strong> <strong>States</strong> from 1901-1902 until1933 was run by a policy entirely contrary to theConstitutional prescription <strong>of</strong> the <strong>United</strong> <strong>States</strong>.When Roosevelt became President, <strong>in</strong> March <strong>of</strong>1933, early March, Hitler had already become a dictator<strong>in</strong> Germany. And it was known to Roosevelt that he hadtwo problems on his hands: First <strong>of</strong> all, the preced<strong>in</strong>gPresidencies <strong>of</strong> the <strong>United</strong> <strong>States</strong> s<strong>in</strong>ce McK<strong>in</strong>ley—whowas shot <strong>in</strong> order to make Teddy Roosevelt President—until Roosevelt’s <strong>in</strong>auguration, was rotten. It was evil. Itwas run from Europe, not from the <strong>United</strong> <strong>States</strong>.Roosevelt had to elim<strong>in</strong>ate the system which had createdthe Depression <strong>in</strong> order to have an economic recovery.He also had to prepare for what he knew was then<strong>in</strong>evitable: some form <strong>of</strong> what became known as WorldWar II.<strong>The</strong> British Launched World War IBecause, it happened <strong>in</strong> the follow<strong>in</strong>g way: You haveto go back to the close <strong>of</strong> the 19th Century. At that po<strong>in</strong>t,the British monarchy decided to launch a new worldwar, under the then-Pr<strong>in</strong>ce <strong>of</strong> Wales, who subsequentlybecame K<strong>in</strong>g <strong>of</strong> England. By operations <strong>in</strong> France,<strong>in</strong>clud<strong>in</strong>g the assass<strong>in</strong>ation <strong>of</strong> a President <strong>of</strong> France,Sadi Carnot, the Dreyfus Affair, and other th<strong>in</strong>gs,France became totally corrupted. <strong>The</strong> rot <strong>in</strong>side France,which had been there under Napoleon III, came to thefore. And the British struck an alliance with France, orcerta<strong>in</strong> forces <strong>in</strong> France, which became the basis forWorld War I, through the establishment <strong>of</strong> the EntenteCordiale with the people who represented the tradition<strong>of</strong> Napoleon I and Napoleon III.In order to get the war go<strong>in</strong>g, they took a foolishKaiser, Wilhelm II, who was a fool, a British fool, <strong>of</strong>British descent; and another fool, who was a successor2


In his keynote address on June 27, Lyndon <strong>LaRouche</strong> outl<strong>in</strong>ed the way out <strong>of</strong> “aworld crisis without parallel,” by return<strong>in</strong>g to the nation-build<strong>in</strong>g policiesexemplified by President Frankl<strong>in</strong> Roosevelt.<strong>of</strong> a great Russian Czar, and put <strong>in</strong> a fool, Nicholas II.And these three fools—Nicholas II <strong>of</strong> course was anephew <strong>of</strong> the K<strong>in</strong>g <strong>of</strong> England, just as Wilhelm II <strong>of</strong>Germany was a nephew <strong>of</strong> the K<strong>in</strong>g <strong>of</strong> England—thesefools launched world war! Which Germany would havewon, except for the U.S. <strong>in</strong>tervention to bail out theBritish and French.<strong>The</strong>y were not satisfied with that. So, immediately,they went <strong>in</strong>to a plan, aga<strong>in</strong> from the British, which wasorganized around the naval power agreements andnegotiations <strong>of</strong> the early 1920s. <strong>The</strong>se early power negotiationswere essentially, crucially—with Brita<strong>in</strong> andJapan—aga<strong>in</strong>st the <strong>United</strong> <strong>States</strong>. Now, Japan had beenmade <strong>in</strong>to a modern nation by the <strong>United</strong> <strong>States</strong>, by its<strong>in</strong>tervention. But Japan had been taken over by theBritish monarchy <strong>in</strong> the 1880s-1890s, and had launchedwhat became known as the first series <strong>of</strong> Japan-Ch<strong>in</strong>awars, <strong>in</strong> 1894-1895. And at this po<strong>in</strong>t, it was an <strong>in</strong>tervention<strong>of</strong> Japan, as a British puppet, a puppet <strong>of</strong> theBritish monarchy, which was out to work with theBritish to elim<strong>in</strong>ate the <strong>in</strong>fluence <strong>of</strong> the <strong>United</strong> <strong>States</strong> <strong>in</strong>the Pacific, especially <strong>in</strong> Ch<strong>in</strong>a.So, the British sponsored the Japan wars aga<strong>in</strong>stCh<strong>in</strong>a, and other wars, as part <strong>of</strong> this policy <strong>in</strong> the1920s. As part <strong>of</strong> that policy, <strong>of</strong> course, there was theplan for Japan, and the British, together with otherEuropean naval powers, to conduct a naval attack onthe naval forces <strong>of</strong> the <strong>United</strong> <strong>States</strong>, to elim<strong>in</strong>ate theU.S. naval power <strong>in</strong> the world, and to restore Britishhegemony <strong>in</strong> naval power. This was the basis for theplan, at that time, where Japan was supposed to attackPearl Harbor as part <strong>of</strong> its agreement—this is <strong>in</strong> the1920s, early 1920s—to attack the <strong>United</strong> <strong>States</strong>’ base atPearl Harbor. This was the issue.Later, Japan ended up as the ally <strong>of</strong> Hitler, but for thesame reason. Japan had become the perpetual enemy <strong>of</strong>the <strong>United</strong> <strong>States</strong>, from the 1890s, onthe issue <strong>of</strong> U.S. <strong>in</strong>fluence <strong>in</strong> Asia, <strong>in</strong>favor <strong>of</strong> British <strong>in</strong>fluence. But Brita<strong>in</strong>,under the <strong>in</strong>fluence <strong>of</strong> Roosevelt, decidednot to support Hitler, whom they hadsupported up to that time—Hitler wasput <strong>in</strong>to power by these guys, <strong>in</strong>clud<strong>in</strong>gsome guys <strong>in</strong> New York; <strong>in</strong>clud<strong>in</strong>g thegrandfather <strong>of</strong> the present President <strong>of</strong>the <strong>United</strong> <strong>States</strong>, who was the guy whosigned the order to move the moneyfrom a German bank to support Hitler’sparty and keep it <strong>in</strong> place, so that Hitlercould be made dictator <strong>of</strong> Germany, onbehalf <strong>of</strong> the <strong>in</strong>terests <strong>of</strong> the French<strong>Synarchist</strong>s and the British Bank <strong>of</strong>England.EIRNS/James Rea<strong>The</strong> Treason <strong>of</strong> theFrench <strong>Synarchist</strong>sBut then, at a certa<strong>in</strong> po<strong>in</strong>t, at thetime—go back to 1940: <strong>The</strong> beaches atDunkirk were the turn<strong>in</strong>g po<strong>in</strong>t which leads up to modernhistory. Hitler had held back the tanks, the tankunits at Dunkirk, to allow the British to escape. Now,why had Hitler done this favor for the British? Hitlerheld back the tanks, because he didn’t want to <strong>of</strong>fendthe British so much that the British could not surrender,as the French were about to do, and were do<strong>in</strong>g, toHitler.<strong>The</strong> <strong>in</strong>tention had been, which was the revised plan<strong>of</strong> the Nazis—the orig<strong>in</strong>al plan was to go East first. <strong>The</strong>nthe German High Command said, “That’s idiocy. Younever go East and attack Russia, when you’ve got theBritish and French on your tail. Elim<strong>in</strong>ate the Britishand French as a threat, first.” So, <strong>in</strong> the first case, withthe help <strong>of</strong> the French <strong>Synarchist</strong>s, <strong>in</strong>side the government<strong>of</strong> France, Germany was allowed to conquerFrance. Germany did not have the military capability <strong>of</strong>destroy<strong>in</strong>g France. <strong>The</strong> door was opened by the Frenchgovernment!; by the <strong>Synarchist</strong> bankers, who we’ll cometo aga<strong>in</strong>, today, to understand what New Bretton Woodsmeans.So therefore, France became what it wished to be! Apuppet <strong>of</strong> the Nazis! With some objections <strong>of</strong> someFrench, but France was essentially a puppet <strong>of</strong> the Naziregime, as so-called “Occupied France.” But it was will<strong>in</strong>glyoccupied. It was like the prostitute who says, “I’mbe<strong>in</strong>g raped,” while tak<strong>in</strong>g the money—<strong>in</strong> this case, pay<strong>in</strong>gfor the privilege.However, Roosevelt had <strong>in</strong>tervened <strong>in</strong>to Britishaffairs and this had <strong>in</strong>duced the famous statement byChurchill, that if the German forces should attempt to<strong>in</strong>vade the <strong>United</strong> K<strong>in</strong>gdom, the British governmentwould order the British fleet, <strong>in</strong>clud<strong>in</strong>g the fleet <strong>of</strong> thecolonies, to go to the <strong>United</strong> <strong>States</strong> and operate underU.S. command. Now, this turn<strong>in</strong>g po<strong>in</strong>t <strong>in</strong> the warmeant that the British were allied with the <strong>United</strong> <strong>States</strong>3


aga<strong>in</strong>st Hitler, where up to that po<strong>in</strong>t the predom<strong>in</strong>antlead<strong>in</strong>g forces <strong>in</strong> England had been for Hitler. And hadbeen for the idea <strong>of</strong> surrender<strong>in</strong>g to Hitler, <strong>in</strong> order toattack the Soviet Union. That had been the plan.So, what I’ve said is fact. But it’s contrary to what iscommonly taught, which <strong>in</strong>dicates: Don’t believe thenewspapers! Don’t try to do <strong>in</strong>telligence by <strong>in</strong>terpret<strong>in</strong>gbreak<strong>in</strong>g news <strong>in</strong> the newspapers, or on radio or televisionbroadcasts. In a period <strong>of</strong> crisis, the newspapers arethe biggest liars <strong>of</strong> all. Never trust them, and never say,“We must respond, we must <strong>in</strong>terpret this.” Anyth<strong>in</strong>gthe press tells you: Don’t believe it. Treat the newspaperreports as diseases, and th<strong>in</strong>k like a physician: You’vegot a disease on your hands. Don’t let the disease <strong>in</strong>fluenceyou, but identify the disease and control it, whichmeans, control the newspaper editor, control the publisher.Because they all lie.And this is particularly true today: Most <strong>of</strong> the th<strong>in</strong>gsyou get <strong>in</strong> the press, lead<strong>in</strong>g press today, are absolutelies. <strong>The</strong>y’re not mean<strong>in</strong>gless, because even a lie tells yousometh<strong>in</strong>g about the liar. But you have to know it’s a lie.<strong>The</strong>n you can identify the mean<strong>in</strong>g, why did the liar lie?What is the purpose <strong>of</strong> the lie?So, <strong>in</strong> <strong>in</strong>telligence—I’m pretty good at <strong>in</strong>telligence. Ican tell you, if you want to be a good <strong>in</strong>telligence <strong>of</strong>ficer,pay very little attention to the press. You have a cl<strong>in</strong>icaldepartment, called the garbage department, to saywhat’s com<strong>in</strong>g out <strong>in</strong> the garbage, to analyze that. It’slike you want to f<strong>in</strong>d out what’s go<strong>in</strong>g on <strong>in</strong> a plant, youlook at what they throw away <strong>in</strong> the backyard, and thenfigure out what was go<strong>in</strong>g on at the plant. So, this is thesituation.FDR’s Plan: To Elim<strong>in</strong>ate ColonialismNow, we come to a po<strong>in</strong>t, that at the end <strong>of</strong> the war,Roosevelt died. Roosevelt had a plan, an <strong>in</strong>tention—which is why the <strong>United</strong> Nations was proposed byhim—to elim<strong>in</strong>ate colonialism and everyth<strong>in</strong>g like it,<strong>in</strong>ternationally. And to use the power <strong>of</strong> the <strong>United</strong><strong>States</strong> to break any government that tried to ma<strong>in</strong>ta<strong>in</strong> acolonial system, by the power <strong>of</strong> the <strong>United</strong> <strong>States</strong>; tosupport struggles for <strong>in</strong>dependence by peoples <strong>of</strong>oppressed nations; and to assist them, with a new system,<strong>in</strong> be<strong>in</strong>g able to develop their economies to truesovereignty. This is based largely on a three-way agreement,among certa<strong>in</strong> forces <strong>in</strong> Ch<strong>in</strong>a, with the agreement<strong>of</strong> the Soviet Union, and the <strong>United</strong> <strong>States</strong>. <strong>The</strong>sewere the three great powers at that time. Ch<strong>in</strong>a was notnom<strong>in</strong>ally a great power, but it’s a great nation, <strong>in</strong>herently.And therefore, Roosevelt’s conception was, that ifyou have the <strong>United</strong> <strong>States</strong>, Ch<strong>in</strong>a, and the Soviet Union<strong>in</strong> agreement on this order for the post-war world, and aprogram <strong>of</strong> post-Hitler recovery for the world, that youwould create an order called the <strong>United</strong> Nations, underwhich these old nations and freed nations, would cometogether to establish a diplomatic vehicle for cooperationand economic development and other th<strong>in</strong>gs.Now, the day that Roosevelt died, that aspect <strong>of</strong> policywent out the w<strong>in</strong>dow. And we had a virtual fascist,Truman, became President—and that’s a story <strong>in</strong> itself,as to how he became President. At that po<strong>in</strong>t, Trumanadopted a policy which was crafted by Bertrand Russell,from England, and the policy was called “preventivenuclear war.” Russell’s policy, which was fully adoptedby the <strong>United</strong> <strong>States</strong> under Truman—and it was adoptedvirtually the day that Roosevelt died!—was to launch apreventive, so-called, nuclear attack on the SovietUnion, to dictate to the Soviet Union submission toworld government—not a system <strong>of</strong> nations, but worldgovernment—as a price for not be<strong>in</strong>g bombed perpetuallyby nuclear weapons.This was the Bertrand Russell policy, as stated <strong>in</strong>September <strong>of</strong> 1946, when it was published. But it wasthe Truman policy, from the beg<strong>in</strong>n<strong>in</strong>g.Now, at the po<strong>in</strong>t that the war had ended, Japan hadalready negotiated surrender to the <strong>United</strong> <strong>States</strong>. <strong>The</strong>surrender had occurred through the Vatican, throughthe Foreign Office <strong>of</strong> the Vatican, through theDepartment <strong>of</strong> Extraord<strong>in</strong>ary Affairs. It was done by aMonsignor [Mont<strong>in</strong>i] at the po<strong>in</strong>t, who later becamePope Paul VI. So, the conditions <strong>of</strong> surrender hadalready been reached with the <strong>United</strong> <strong>States</strong>, whileRoosevelt was still President.But when Truman became President, this wasstopped. Why? Because the <strong>United</strong> <strong>States</strong> had, at thatpo<strong>in</strong>t, two rema<strong>in</strong><strong>in</strong>g prototypes <strong>of</strong> a nuclear weapon,one uranium, one plutonium. <strong>The</strong>se were laboratoryprototypes. <strong>The</strong>y were not production-l<strong>in</strong>e weapons systems.<strong>The</strong> <strong>United</strong> <strong>States</strong> dropped two, totally unnecessary,nuclear weapons on Hiroshima and Nagasaki, aspart <strong>of</strong> the policy <strong>of</strong> demonstrat<strong>in</strong>g nuclear weapons; aspart <strong>of</strong> the Bertrand Russell policy—the great pacifist:You know, if you kill everybody, you have peace—theRussell policy <strong>of</strong> permanent warfare, nuclear warfare, toestablish world government, to elim<strong>in</strong>ate the nationstate.That is, to establish what’s called, today, “globalization.”Elim<strong>in</strong>ation <strong>of</strong> the nation-state, world governmentunder a concert <strong>of</strong> f<strong>in</strong>ancier forces which elim<strong>in</strong>atesovereign government as is be<strong>in</strong>g done, today.<strong>The</strong> Intention Is Called ‘Globalization’So that, many <strong>of</strong> the th<strong>in</strong>gs that are happen<strong>in</strong>g, arenot <strong>in</strong>evitable events today, someth<strong>in</strong>g that happenedbecause <strong>of</strong> a process, or some non-understandableprocess. Th<strong>in</strong>gs that are happen<strong>in</strong>g today to nations, asto Germany, as to France, as to Italy, as to other parts <strong>of</strong>the world, these th<strong>in</strong>gs are part <strong>of</strong> a long-term policywith an <strong>in</strong>tention beh<strong>in</strong>d it! <strong>The</strong> <strong>in</strong>tention is called globalization.<strong>The</strong> <strong>in</strong>tention was first expressed <strong>in</strong> Europe,and <strong>in</strong> the <strong>United</strong> <strong>States</strong>, shortly after the death <strong>of</strong>President Frankl<strong>in</strong> Roosevelt.<strong>The</strong> generation that went to war, my generation,would not put up with the k<strong>in</strong>ds <strong>of</strong> th<strong>in</strong>gs that are happen<strong>in</strong>gtoday. It’s only because my generation has beenreplaced <strong>in</strong> power, that a younger generation, nowbetween 50 years <strong>of</strong> age and 65, or slightly older, is run-4


FDR and Churchill at Yalta, February 1945. When Brita<strong>in</strong> was threatened byHitler, Churchill ordered the fleet to operate under U.S. command. “Now,” said<strong>LaRouche</strong>, “this turn<strong>in</strong>g po<strong>in</strong>t <strong>in</strong> the war meant that the British were allied withthe <strong>United</strong> <strong>States</strong> aga<strong>in</strong>st Hitler, where up to that po<strong>in</strong>t the predom<strong>in</strong>ant lead<strong>in</strong>gforces <strong>in</strong> England had been for Hitler.”n<strong>in</strong>g the world. <strong>The</strong> generation comes from the upper20% <strong>of</strong> family-<strong>in</strong>come brackets <strong>of</strong> Europe and the<strong>United</strong> <strong>States</strong>. This generation is called the BabyBoomers. Or, <strong>in</strong> France, the less-complimentary name,“BoBos.” A more accurate term: Bourgeois Bohèmes.So this has been planned all along. At first, under theBretton Woods system, it was kept alive. <strong>The</strong> colonieswhich had been liberated, or were about to be liberated,were suppressed, or absorbed <strong>in</strong> a new way, by France,by Brita<strong>in</strong>, by the Dutch. <strong>The</strong> Dutch were particularlynasty at this bus<strong>in</strong>ess <strong>in</strong> Indonesia. Everyone was<strong>in</strong>volved <strong>in</strong> the suppression <strong>of</strong> Indo-Ch<strong>in</strong>a, reconquer<strong>in</strong>g<strong>of</strong> Indo-Ch<strong>in</strong>a, which had already declared its <strong>in</strong>dependencethrough Ho Chi M<strong>in</strong>h, who had been Rooseveltsponsoredat the time. So, Europe was totally corrupt.<strong>The</strong> <strong>United</strong> <strong>States</strong> was totally corrupt, on this issue.And we had an anti-Communist movement, whichwas absolutely <strong>in</strong>sane! <strong>The</strong>re was no reason for it; it wasabsolute <strong>in</strong>sanity. But under this program, what didthey do? <strong>The</strong>y said, “You can not change the older generation,”my generation, or the generation which wasstill older which was liv<strong>in</strong>g then. “You can’t change theirways, they still believe <strong>in</strong> the modern nation-state. <strong>The</strong>ybelieve <strong>in</strong> scientific and technological progress. <strong>The</strong>ybelieve <strong>in</strong> agriculture. <strong>The</strong>y have these Roosevelt ideas,about opportunities, like health <strong>in</strong>surance for everyone—thatsort <strong>of</strong> th<strong>in</strong>g. <strong>The</strong>se ideas must go—and thisolder generation is embedded with these beliefs, andthese political and social values. We have to create a newgeneration to come to power, which will not go along tobelieve <strong>in</strong> these th<strong>in</strong>gs.”So, from the beg<strong>in</strong>n<strong>in</strong>g, from 1946 on, with thelaunch<strong>in</strong>g <strong>of</strong> a right-w<strong>in</strong>g campaign <strong>of</strong> terror <strong>in</strong>side the<strong>United</strong> <strong>States</strong> and <strong>in</strong>side Europe, you had the beg<strong>in</strong>n<strong>in</strong>g<strong>of</strong> a mobilization for a change <strong>in</strong> direction <strong>of</strong> society,which became the characteristic <strong>of</strong> theBaby-Boomer generation. Those who wereborn between 1945 and approximately1957—that generation. And this generationwas directed to go <strong>in</strong>to the lead<strong>in</strong>g universities,from which the lead<strong>in</strong>g layer <strong>of</strong> thenext generation’s leaders <strong>of</strong> society wouldcome, whether <strong>in</strong> government, <strong>in</strong> bus<strong>in</strong>ess,<strong>in</strong> universities.And you had a takeover <strong>of</strong> the universities,where the quality <strong>of</strong> the pr<strong>of</strong>essorsbecame poorer and poorer and poorer—even before this generation took over.<strong>The</strong>n, you had the great explosion <strong>of</strong> 1968,<strong>in</strong> Europe and <strong>in</strong> North America, simultaneously.And the values, the new values,the existentialist values expressed by certa<strong>in</strong>k<strong>in</strong>ds <strong>of</strong> fascists, the Frankfurt Schoolfascists, the existentialists—they said,“Move over.” And the demonstration, asyou see <strong>in</strong> Germany, for example, the environmentalistmovement, the Green movementwas created as a result <strong>of</strong> this.Absolute <strong>in</strong>sanity, us<strong>in</strong>g a program which had beendeveloped by Hermann Gör<strong>in</strong>g <strong>in</strong> Germany as part <strong>of</strong> acultural program, <strong>in</strong> the 1920s on, this program tookover. And Germany was destroyed from with<strong>in</strong>, largely,f<strong>in</strong>ally, <strong>in</strong> the 1960s already, was destroyed, <strong>in</strong> part, bythe Green movement aga<strong>in</strong>st nuclear energy, andaga<strong>in</strong>st technology generally.Once the Soviet Union had collapsed, immediately,the next phase was, consolidate it. Who did it? <strong>The</strong>British monarchy and the French, Mitterrand, otherwiseknown as Napoleon IV, a British agent like Napoleon III.So this was the process. In the <strong>United</strong> <strong>States</strong>, thesame th<strong>in</strong>g: the Kyoto demands, these reforms, so-calledenvironmentalist reforms. A complete fraud! To shutdown the world economy.So, what you have, is you have a generation <strong>in</strong> power,which says you either support, or you have to go alongwith policies under which your own country is go<strong>in</strong>g tobe destroyed. And your objective is to submit to a newsystem <strong>of</strong> th<strong>in</strong>gs, called “globalization”: You’re no longergo<strong>in</strong>g to have <strong>in</strong>dustry. You’re no longer go<strong>in</strong>g to have<strong>in</strong>dependent farm<strong>in</strong>g. You’re now go<strong>in</strong>g to submit. Towhat? Or better said: To whom?So, when you understand the crisis <strong>in</strong> the <strong>United</strong><strong>States</strong> today, or attempt to understand the crisis <strong>in</strong>Europe, don’t look at what are called the “importantforces,” because they’re not important. No government<strong>of</strong> Europe is important. None! <strong>The</strong> former Comeconstates are worse <strong>of</strong>f than they were under Soviet direction.Every one <strong>of</strong> them, vastly worse! Germany hasbeen <strong>in</strong> worse, and worse, and worse condition, evers<strong>in</strong>ce about the middle <strong>of</strong> the 1960s. Not as collapsed,immediately, but the process lead<strong>in</strong>g toward eventualcollapse, was <strong>in</strong> progress. France became more andmore degenerate. De Gaulle made an effort to reverse5


that tendency. Aga<strong>in</strong>, it was taken away from him, after1963, after the assass<strong>in</strong>ation <strong>of</strong> Kennedy. With thelaunch<strong>in</strong>g <strong>of</strong> the Vietnam War by the <strong>United</strong> <strong>States</strong>—this was the beg<strong>in</strong>n<strong>in</strong>g <strong>of</strong> the end.So that, by 1971-72, after the monetary system hadalready been wrecked, first by the British, by the HaroldWilson government <strong>in</strong> 1957; and then under [Lyndon]Johnson <strong>in</strong> 1968. <strong>The</strong> system was gone. We had a float<strong>in</strong>g-exchange-ratesystem. <strong>The</strong> Bretton Woods systemwas destroyed. You look at the 1970s, where 1971-72were the end <strong>of</strong> the Bretton Woods system, through1981, the po<strong>in</strong>t that poor President Carter, who didn’tknow what he was do<strong>in</strong>g, left <strong>of</strong>fice. Brzez<strong>in</strong>ski did it,not Carter. Carter didn’t understand a th<strong>in</strong>g.So, this group destroyed the <strong>United</strong> <strong>States</strong>, destroyedregulation. Destroyed everyth<strong>in</strong>g <strong>in</strong> economic policy onwhich the achievement <strong>of</strong> Roosevelt had depended;destroyed everyth<strong>in</strong>g which was <strong>in</strong> the Roosevelt policy,which is based on the U.S. Constitutional conception <strong>of</strong>government. And similar k<strong>in</strong>ds <strong>of</strong> th<strong>in</strong>gs reverberated <strong>in</strong>Europe—led by England, which was the worst <strong>of</strong> allthese places—by Brita<strong>in</strong>.<strong>The</strong> Orig<strong>in</strong> <strong>of</strong> the ProblemSo, what we have today is this, is a culm<strong>in</strong>ation <strong>of</strong>that process. We’ve come to the po<strong>in</strong>t that the <strong>United</strong><strong>States</strong> is not the source <strong>of</strong> the problem. <strong>The</strong> <strong>United</strong><strong>States</strong> is the key symptom <strong>of</strong> the problem. <strong>The</strong> orig<strong>in</strong> <strong>of</strong>the problem, which you see <strong>in</strong> the <strong>United</strong> <strong>States</strong>, is<strong>in</strong>side Europe. And you have a couple <strong>of</strong> people visit<strong>in</strong>gtoday, who will give some reports bear<strong>in</strong>g on that, fromJeff Ste<strong>in</strong>berg and from Cliff Kirac<strong>of</strong>e [see below, fortheir presentations].<strong>The</strong> source <strong>of</strong> this problem is essentially a connectionbetween a phenomenon <strong>in</strong> France, called the <strong>Synarchist</strong>International, which essentially took over at theVersailles Treaty, <strong>in</strong> alliance with the British and Dutch.<strong>The</strong> alliance largely took the form, as you will heartoday—I won’t go <strong>in</strong>to the details, but just to <strong>in</strong>dicatethe nature <strong>of</strong> the problem—took the form <strong>of</strong> the<strong>Synarchist</strong>s associated with Lazard Frères, and particularly,specifically with André Meyer <strong>of</strong> France; lead<strong>in</strong>g<strong>Synarchist</strong> bankers who moved <strong>in</strong>to an alliance withRoyal Dutch Shell, and the Dutch royal family and theBritish royal family. This is the phenomenon todaycalled the Bilderberg Society, which is not really a society,it’s just a meet<strong>in</strong>g <strong>of</strong> people who reflect this. <strong>The</strong>y’renot the controllers, there’s no Bilderberg conspiracy. It’sa completely different conspiracy. But the BilderbergSociety is one <strong>of</strong> the events which occurs periodically, asnow, which is a reflection <strong>of</strong> what the problem is, <strong>of</strong>who the problem is. It’s a problem centered <strong>in</strong> Europe,with strong tentacles <strong>in</strong>side the <strong>United</strong> <strong>States</strong>, which weknow <strong>in</strong> the <strong>United</strong> <strong>States</strong> as the “Party <strong>of</strong> Treason,”which is centered <strong>in</strong> bankers. Bankers such as thegrandfather <strong>of</strong> the present President <strong>of</strong> the <strong>United</strong><strong>States</strong>, who f<strong>in</strong>anced Hitler’s com<strong>in</strong>g back to power,together with the British and others. <strong>The</strong>y’re out todestroy the <strong>United</strong> <strong>States</strong>. And the immediate operationwas to focus on the mach<strong>in</strong>e-tool capacity <strong>of</strong> the <strong>United</strong><strong>States</strong>, because, without the <strong>United</strong> <strong>States</strong>’ mach<strong>in</strong>e-toolcapacity, no recovery is possible.<strong>The</strong>re are two th<strong>in</strong>gs to consider here: First <strong>of</strong> all, theobjective is globalization. Europe is absolutely <strong>in</strong>capable<strong>of</strong> defend<strong>in</strong>g itself now. <strong>The</strong>re is no force <strong>in</strong> Europewhich will be will<strong>in</strong>g to defend Europe, that is a capableforce. France is bankrupt. Italy is worse than bankrupt.Germany is condemned to bankruptcy, as you see <strong>in</strong>Berl<strong>in</strong>, the destruction <strong>of</strong> the <strong>in</strong>dustrial potential <strong>of</strong>Berl<strong>in</strong>.Germany could, you would say, survive. We’ve <strong>of</strong>tentalked about this. All you have to do, is have a system <strong>of</strong>state credit. You have a source <strong>of</strong> state credit, you canf<strong>in</strong>d by the proper <strong>in</strong>vestments, you can <strong>in</strong>crease theeconomic output <strong>of</strong> Germany more rapidly than the cost<strong>of</strong> this credit. You just need the right program, largelybased <strong>in</strong> <strong>in</strong>frastructure: Rebuild the mach<strong>in</strong>e-tool <strong>in</strong>dustryand so forth. But, what’s not allowed, especially s<strong>in</strong>ceMaastricht: Germany is not allowed to do that! Germanyis ordered to destroy the <strong>in</strong>dustrial potential <strong>of</strong> Berl<strong>in</strong>,much below the level it was at the time <strong>of</strong> 1989.So, unless Europe is will<strong>in</strong>g to break the politicalbonds <strong>of</strong> slavery, with<strong>in</strong> Europe, led by the Anglo-French-Dutch alliance, then there’s no country <strong>in</strong>Western Europe or Central Europe which has the abilityto survive. Poland is already virtually dead. <strong>The</strong> othercountries <strong>of</strong> the former Comecon countries are virtuallydead economically, or dy<strong>in</strong>g, rotted. Russia has beenlooted <strong>in</strong>to weakness. It has some program for recovery,but it has no recovery yet. <strong>The</strong>re’s no hope, <strong>in</strong> Eurasiagenerally, for this k<strong>in</strong>d <strong>of</strong> recovery. Yes, you have arecovery <strong>in</strong> Ch<strong>in</strong>a—but, do you have a recovery <strong>in</strong>Ch<strong>in</strong>a? No, you don’t really have a recovery <strong>in</strong> Ch<strong>in</strong>a.Economic growth is occurr<strong>in</strong>g <strong>in</strong> some parts <strong>of</strong> Ch<strong>in</strong>a.Economic growth based largely on us<strong>in</strong>g U.S. productdesigns, with U.S. credit to produce products for theworld market, especially the U.S. market. If the U.S.economy collapses, the Ch<strong>in</strong>ese economy collapses—and Ch<strong>in</strong>a has a social crisis as a result <strong>of</strong> it. Becauseyou have a disparity between the rich and the poor <strong>in</strong>Ch<strong>in</strong>a, which is part <strong>of</strong> the foolish policy adopted byCh<strong>in</strong>a. You don’t have billionaires <strong>in</strong> a country with verypoor people: That is not <strong>in</strong>telligent policy. You don’t givetax-free bonuses to people who are just parasites, tobecome billionaires, while you have your countrysidefull <strong>of</strong> over a billion people who are extremely poor,with no real prospect for the future unless there’s achange <strong>in</strong> their condition <strong>of</strong> life. Hmm?<strong>The</strong>n look at India. India has a better situation thanCh<strong>in</strong>a, because India has greater <strong>in</strong>herent stability andless dependence upon the world market. India also hasits own potential for growth. If India goes <strong>in</strong>to the fullscalethorium high-temperature gas-cooled reactor program,which fits its requirement—which I’ve been recommend<strong>in</strong>gfor years, as have others—then India couldhave a very rapid <strong>in</strong>ternal improvement <strong>in</strong> the basic6


<strong>in</strong>frastructure and power. So, India could undergo,under certa<strong>in</strong> conditions, a significant recovery, andwould have greater resistance to the political effects <strong>of</strong> ageneral collapse <strong>of</strong> the economy than Ch<strong>in</strong>a. Ch<strong>in</strong>awould be faced with an immediate social crisis, whichwould probably explode <strong>in</strong> some k<strong>in</strong>d <strong>of</strong> violent crisis,under the present conditions.So, there is no hope, look<strong>in</strong>g at the rest <strong>of</strong> Asia; thereis no hope, if the <strong>United</strong> <strong>States</strong>’ economy were to collapse;there is no hope <strong>of</strong> rescue from Asia. Nor is therepresently any political hope <strong>of</strong> rescue <strong>of</strong> world civilizationfrom Western Europe. None.<strong>The</strong> <strong>United</strong> <strong>States</strong> Must ChangeIts Policy<strong>The</strong>refore, you can’t say, as many foolish people aresay<strong>in</strong>g, that if the <strong>United</strong> <strong>States</strong> goes under as this greatimperial ogre, then we will be free <strong>of</strong> the <strong>United</strong> <strong>States</strong>’tyranny and we could f<strong>in</strong>d a solution, perhaps with ourfriends <strong>in</strong> Asia: Doesn’t exist. It’s a complete piece <strong>of</strong>foolishness. It’s absolute nonsense.Yes, the cooperation between, for example, Germany,Russia, and the countries <strong>of</strong> the Shanghai CooperationOrganization, is a model <strong>of</strong> what must happen; as a factor<strong>in</strong> a general economic recovery, it must happen. Butit will not work, unless the <strong>United</strong> <strong>States</strong> changes its policy.And that’s what I’m concerned with: gett<strong>in</strong>g the<strong>United</strong> <strong>States</strong> to change its policy, because otherwise,the rest <strong>of</strong> the world doesn’t have a chance <strong>of</strong> escap<strong>in</strong>g anew dark age. You f<strong>in</strong>d some government <strong>in</strong> Europe,which is prepared to overthrow these governments now,and establish a government committed to the k<strong>in</strong>d <strong>of</strong>policies that Roosevelt represented <strong>in</strong> 1945? Or, policiesthat Germany represented back before the middle <strong>of</strong> the1960s? And turn it back to those k<strong>in</strong>ds <strong>of</strong> policies? No,none. None.Because, Germany is controlled by someth<strong>in</strong>g, also.It’s controlled by the evil, which is more resident hereEIRNS/Dan SturmanEIRNS/Gene Schenk<strong>Synarchist</strong> banker Felix Rohatyn, through LazardFrères, ordered the shutdown <strong>of</strong> U.S. <strong>in</strong>dustry, to destroythe nation. This Delphi plant <strong>in</strong> Sandusky, Ohio,now closed, is to be replaced by a Honda dealership.than <strong>in</strong> the <strong>United</strong> <strong>States</strong>. In the <strong>United</strong> <strong>States</strong>, evil is aEuropean import, and always has been. In Europe, it’sthe oligarchy.You know, Nicholas <strong>of</strong> Cusa, after the fall <strong>of</strong>Constant<strong>in</strong>ople, and after a defeat aga<strong>in</strong>st the TurkishOttoman forces <strong>in</strong> the Balkans, made a policy, and said:<strong>The</strong> function <strong>of</strong> Europe must be to reach out across theoceans, to people liv<strong>in</strong>g on the other side <strong>of</strong> the oceans,and establish alliances, <strong>in</strong> cooperation with them, torebuild civilization along the l<strong>in</strong>es upon which the greatRenaissance had been launched.As a result <strong>of</strong> Cusa’s efforts, specifically, for example<strong>in</strong> the case <strong>of</strong> Christopher Columbus—ChristopherColumbus read a copy <strong>of</strong> the will <strong>of</strong> Nicholas <strong>of</strong> Cusa.On the basis <strong>of</strong> read<strong>in</strong>g the will <strong>of</strong> Nicholas <strong>of</strong> Cusa,Christopher Columbus, who was an experienced navigator,got <strong>in</strong> touch with the friends <strong>of</strong> Cusa <strong>in</strong> Italy, <strong>in</strong> anexchange <strong>in</strong> 1480, extensive correspondence, andplanned the trans-Atlantic voyage <strong>of</strong> discovery to f<strong>in</strong>dthe New World on the other side <strong>of</strong> the ocean, and knewit was there. He didn’t have the right location, thought itwas Ch<strong>in</strong>a and Japan, because the Venetians had liedabout how far it was to walk to Ch<strong>in</strong>a.But nonetheless, the discovery <strong>of</strong> the Americas wasthe result <strong>of</strong> the <strong>in</strong>fluence <strong>of</strong> Nicholas <strong>of</strong> Cusa, <strong>in</strong> thelate part <strong>of</strong> the 15th Century, <strong>in</strong> prescrib<strong>in</strong>g these trans-Atlantic and other voyages, to meet the people on theother side <strong>of</strong> the world. And to establish collaborationwith them, to overcome the great problem which threatenedthe <strong>in</strong>tegrity <strong>of</strong> the Renaissance.So what happened as a result <strong>of</strong> that, is that theEuropeans began to move, gradually, <strong>in</strong>creas<strong>in</strong>gly,across the ocean, <strong>in</strong>to the Americas. We went through,from 1492, with the expulsion <strong>of</strong> the Jews from Spa<strong>in</strong>,until 1648, the Treaty <strong>of</strong> Westphalia, you had a process<strong>of</strong> bloody, religious warfare throughout Europe. A policy<strong>of</strong> racism and murder, echo<strong>in</strong>g the Crusades—the mostevil th<strong>in</strong>g s<strong>in</strong>ce the Crusades. And therefore, people,7


more and more, left Europe, especially <strong>in</strong> the early 17thCentury, left Europe, <strong>in</strong>to the Americas, and establishedbranches <strong>of</strong> European civilization <strong>in</strong> North and SouthAmerica—with complications. But, the result was, <strong>in</strong> the18th Century, the standard <strong>of</strong> liv<strong>in</strong>g and productivity <strong>in</strong>the young <strong>United</strong> <strong>States</strong>, at the time <strong>of</strong> its adoption <strong>of</strong> itsConstitution, was about twice the level <strong>of</strong> productivityand standard <strong>of</strong> liv<strong>in</strong>g <strong>of</strong> people <strong>in</strong> England: twice. Why?Same culture. We were Europeans. We represented aEuropean culture. We embodied European culture. Butwe embodied it, free <strong>of</strong> the burden <strong>of</strong> an oligarchy!<strong>The</strong> Issue Is LibertyAnd therefore, the idea was not democracy.Democracy is trash. Look at what happened <strong>in</strong> Greece:the Peloponnesian War. What caused the PeloponnesianWar? Democracy! An evil philosophy called sophistry.Democracy is not the issue. <strong>The</strong> issue is liberty. <strong>The</strong>issue is <strong>in</strong>dividual liberty, the right to liberty; the right toa society <strong>in</strong> which liberty is defended and promoted; theright <strong>of</strong> the liberty <strong>of</strong> the m<strong>in</strong>ority aga<strong>in</strong>st the majority.Not democracy. So, the idea <strong>of</strong> liberty, which is the ideaon which the <strong>United</strong> <strong>States</strong> was founded, which itsConstitution represents: This was the issue.So, what we’ve represented all along s<strong>in</strong>ce that time,and we have been <strong>in</strong> battle with what became anempire; Europe has been dom<strong>in</strong>ated predom<strong>in</strong>antly by aris<strong>in</strong>g empire, which is the Anglo-Dutch empire with aFrench connection, especially the <strong>Synarchist</strong> connection.<strong>The</strong> corruption we suffer <strong>in</strong> the <strong>United</strong> <strong>States</strong> hasalways come from Europe. And it’s come from theBritish monarchy, the Dutch monarchy, and people likethat. <strong>The</strong> alliance <strong>of</strong> the Synarchy with Royal DutchShell, and with the British monarchy, is simply the mostrecent phase <strong>of</strong> this process. <strong>The</strong> goal has always been toestablish an empire, empire, EMPIRE. Globalization isnoth<strong>in</strong>g but an empire; it’s a new form <strong>of</strong> empire. It’s theelim<strong>in</strong>ation <strong>of</strong> the nation-state; it’s the elim<strong>in</strong>ation <strong>of</strong> liberty;it’s the elim<strong>in</strong>ation <strong>of</strong> the rights.Now, who’s do<strong>in</strong>g it <strong>in</strong> the <strong>United</strong> <strong>States</strong>? Who’s myenemy? Well, the most prom<strong>in</strong>ent, obvious enemy, is afellow called Felix Rohatyn. Felix Rohatyn is a fascist.He was a protégé <strong>of</strong> the André Meyer, who was part <strong>of</strong>the organization which set up the deal with Royal DutchShell, which set up what became the Bilderberg Society,so-called. This is the power bloc.Now, these bankers are a special type: <strong>The</strong>y <strong>in</strong>vestlargely <strong>in</strong> ga<strong>in</strong><strong>in</strong>g property, not just <strong>in</strong> money, becausethey know the money system is vulnerable. <strong>The</strong>y want tohave the property <strong>in</strong> their hand, under their control, atthe time th<strong>in</strong>gs break down. <strong>The</strong>ir method is to destroy<strong>in</strong>dependent <strong>in</strong>dustries, which are not under their control,and to grab control <strong>of</strong> assets which are presentlynot under their control. And they have orchestrated, thiscrowd—<strong>in</strong> the aftermath <strong>of</strong> ’71-72, the change <strong>in</strong> themonetary system—has orchestrated step by step, each <strong>of</strong>the developments <strong>in</strong>side the <strong>United</strong> <strong>States</strong>, which havedestroyed the U.S. political and economic system. Andthey’re do<strong>in</strong>g the same th<strong>in</strong>g <strong>in</strong>side Europe, the samepeople. You look at André Meyer and his descendants,you look at the reports that Jeff [Ste<strong>in</strong>berg] can refer toand others, on the question <strong>of</strong> exactly what the cont<strong>in</strong>uity<strong>of</strong> this is: It’s the same enemy.An Old Enemy: <strong>The</strong> SophistsWhat is this enemy? It’s an old one. Noth<strong>in</strong>g orig<strong>in</strong>alabout it. It’s an enemy we know from the Sophists whowere responsible for the corruption <strong>of</strong> Athens, which ledto the destruction <strong>of</strong> Greek civilization through thePeloponnesian War. And the policy is like the policies <strong>of</strong>Cheney toward Iraq, is pretty much the same th<strong>in</strong>g, asthe policies <strong>of</strong> Pericles and company, toward his victims,start<strong>in</strong>g the Peloponnesian War. No difference.<strong>The</strong> policies, today, <strong>in</strong> the <strong>United</strong> <strong>States</strong>—the social policies,the so-called “liberal” policies today—are no differentthan the sophistry by which Greece destroyed itself,Athens destroyed itself, <strong>in</strong> the Peloponnesian War.<strong>The</strong> heritage <strong>of</strong> ancient Rome, Imperial Rome:<strong>The</strong>re’s noth<strong>in</strong>g good about Imperial Rome! A completelydegenerate and evil culture, from the beg<strong>in</strong>n<strong>in</strong>g!<strong>The</strong>re’s noth<strong>in</strong>g good about Byzantium, it was evil fromthe beg<strong>in</strong>n<strong>in</strong>g. Charlemagne was an attempt to establisha civilization <strong>of</strong> the August<strong>in</strong>ian tradition, <strong>in</strong> cooperationwith Muslims represented by the Caliphate <strong>of</strong>Baghdad, and with Jews who were a mediat<strong>in</strong>g portion,and play<strong>in</strong>g a key role <strong>in</strong> the cooperation between Araband Christian, <strong>in</strong> the case <strong>of</strong> Charlemagne and hisimmediate successors.That was a period <strong>of</strong> hope. It probably saved civilization,<strong>in</strong> the sense <strong>of</strong> creat<strong>in</strong>g an impetus which we couldturn to later to revive civilization.But then, the Venetian crowd and the Crusaderscame <strong>in</strong>. <strong>The</strong>y were noth<strong>in</strong>g but butchers, with theirCrusades: Kill the Jews! Kill the Arabs! Great Crusades!Perpetual warfare! And they destroyed themselves <strong>in</strong> the14th Century, <strong>in</strong> the collapse <strong>of</strong> the monetary system,which is about to happen now.We’re at a po<strong>in</strong>t, where the ratio <strong>of</strong> collapse <strong>of</strong> productionper capita, the collapse <strong>of</strong> basic economic <strong>in</strong>frastructure,<strong>in</strong> Europe and <strong>in</strong> the Americas, especially <strong>in</strong> the<strong>United</strong> <strong>States</strong>, is so great, that we can no longer susta<strong>in</strong>the exist<strong>in</strong>g level <strong>of</strong> population, on the basis <strong>of</strong> the exist<strong>in</strong>glevel <strong>of</strong> f<strong>in</strong>ancial debt. It can not be done. <strong>The</strong>re’s noway that you can pay these debts, none. It is <strong>in</strong>evitablenow, that the present f<strong>in</strong>ancial system will becomeext<strong>in</strong>ct <strong>in</strong> a very near period <strong>of</strong> time. It’s f<strong>in</strong>ished.However, from our experience with Roosevelt, theexperience we had <strong>in</strong> reconstruction <strong>in</strong> the <strong>United</strong> <strong>States</strong>earlier, and reconstruction <strong>in</strong> Europe <strong>in</strong> the post-warperiod—from the end <strong>of</strong> the war, approximately, untilthe middle <strong>of</strong> the 1960s—that these methods are anexample <strong>of</strong> what will work today. We simply have t<strong>of</strong><strong>in</strong>d, <strong>in</strong> the present situation, the method <strong>of</strong> apply<strong>in</strong>gthese lessons <strong>of</strong> experience which are an immediate referencepo<strong>in</strong>t, and apply<strong>in</strong>g these lessons <strong>of</strong> experience tothe present situation.8


We can put the entire <strong>in</strong>ternational monetary system<strong>in</strong>to bankruptcy! It’s only a paper organization. It’s onlya creation <strong>of</strong> governments. <strong>The</strong> Federal Reserve System<strong>in</strong> the <strong>United</strong> <strong>States</strong> is totally bankrupt! All these banksare hopelessly bankrupt! <strong>The</strong>re’s noth<strong>in</strong>g we can do withthem, except put them <strong>in</strong>to bankruptcy. It only takesone act by the government: <strong>The</strong> President and theCongress agree to put the Federal Reserve System <strong>in</strong>tobankruptcy, <strong>in</strong>to receivership; take the Federal ReserveSystem <strong>in</strong>—the whole th<strong>in</strong>g is under control! <strong>The</strong>n youhave to know how to manage the system that you’ve put<strong>in</strong>to bankruptcy.How do you do that? Very simply: large-scale <strong>in</strong>frastructureprojects, with state credit at low <strong>in</strong>terest rates.So, you build up basic economic <strong>in</strong>frastructure, youbuild up the <strong>in</strong>dustry, the development <strong>of</strong> <strong>in</strong>dustry, bybuild<strong>in</strong>g up the <strong>in</strong>frastructure. You build water systems,power systems, other k<strong>in</strong>ds <strong>of</strong> systems which are <strong>in</strong> thepublic doma<strong>in</strong>. And by build<strong>in</strong>g them up, you stimulatethe market for private enterprise. As rapidly as you candevelop the technology, you can expand. It was done <strong>in</strong>the post-war here, it was done <strong>in</strong> part <strong>in</strong> France, it wasdone <strong>in</strong> the <strong>United</strong> <strong>States</strong>.So there’s no problem, <strong>in</strong> putt<strong>in</strong>g a f<strong>in</strong>ancial systemthrough bankruptcy: After all, it is, as John KennethGalbraith said at one po<strong>in</strong>t, “It’s only paper!” It is notreal, it’s only paper! It’s worth noth<strong>in</strong>g, except what governmentassigns to it as a value. So actually, the physicalvalues are the important ones. So, <strong>in</strong> a crisis like this,you don’t try to save the f<strong>in</strong>ancial system. You try tohave an orderly reorganization <strong>of</strong> the f<strong>in</strong>ancial system.Orderly, which can only be done by governments.<strong>The</strong>n, what you do, is, you must create state credit,and credit which is a byproduct <strong>of</strong> that, to launch immediately,large-scale programs <strong>of</strong> basic economic <strong>in</strong>frastructure,which are aimed to support an expansion <strong>of</strong>private production: agriculture, <strong>in</strong>dustry, and so forth.You change the orientation away from a greenie orientation,to what we used to have, prior to ’68, back to a science-driven<strong>in</strong>dustrial-agricultural orientation. Changethe character <strong>of</strong> universities, back to a production-oriented,science-oriented, physical-science-oriented objective,and start to produce, aga<strong>in</strong>, improved productswhich <strong>in</strong>crease the productive powers <strong>of</strong> labor.What Dist<strong>in</strong>guishes Manfrom a Gorilla?Now, one f<strong>in</strong>al po<strong>in</strong>t on this: <strong>The</strong> key reason whypeople don’t understand what is, for me obvious, isbecause they don’t understand, at least on the level <strong>of</strong>public policy, they don’t understand the differencebetween man and a gorilla. All you have to do, is readany <strong>of</strong> these bus<strong>in</strong>ess reports and talk to any <strong>of</strong> the typicalmanagers: <strong>The</strong>y don’t know the one factor that dist<strong>in</strong>guishesman from a gorilla. Because, if man were, asthe existentialists tell us he is—like the Frankfurt Schoolcrowd, hmm?—if man were as that, man could notmake a discovery <strong>of</strong> a scientific pr<strong>in</strong>ciple. No gorillacould do that. No lower form <strong>of</strong> life can do that. Only ahuman be<strong>in</strong>g, the <strong>in</strong>dividual human m<strong>in</strong>d, is capable <strong>of</strong>develop<strong>in</strong>g a discovery <strong>of</strong> pr<strong>in</strong>ciple, such as universalgravitation, for example, as Kepler did.European civilization’s progress, above the level <strong>of</strong>stagnation which had existed previously, was based onthe impact <strong>of</strong> the work <strong>of</strong> particularly Nicholas <strong>of</strong> Cusa<strong>in</strong> the launch<strong>in</strong>g <strong>of</strong> modern experimental scientificmethod. It’s a result <strong>of</strong> the spread <strong>of</strong> that, and the development<strong>of</strong> culture, Classical culture and literature andso forth, on the same basis, <strong>in</strong> the ideas <strong>of</strong> Dante forexample, that Europe began to move as a civilizationwhich had a significantly higher standard <strong>of</strong> liv<strong>in</strong>g thanAsia. That was the real beg<strong>in</strong>n<strong>in</strong>g. <strong>The</strong> roots werealready there, but the number <strong>of</strong> people who hadexpressed these roots was limited, conf<strong>in</strong>ed, by theprevalence <strong>of</strong> empires.So, the key to economy, the key to the ability to risefrom a few million <strong>in</strong>dividuals liv<strong>in</strong>g on this planet atone time, to over 6 billion today, is the creative powers<strong>of</strong> the human m<strong>in</strong>d. What has happened, as Aeschyloswarned us <strong>in</strong> his famous Prometheus trilogy, particularlythe second part, the one that’s available, PrometheusBound: <strong>The</strong> crime for which Prometheus was condemnedto torture by the Olympian Zeus, otherwiseknown as Satan, was that man should not be allowed toknow how to use fire. Man should not be allowed to discoveruniversal physical pr<strong>in</strong>ciples and change the wayman behaves, based on the power <strong>of</strong> the <strong>in</strong>dividual m<strong>in</strong>dto do someth<strong>in</strong>g no gorilla can do: Is change its culture,change the character <strong>of</strong> its culture by technologicalprogress.Everyth<strong>in</strong>g that was done <strong>in</strong> the post-war period, forexample: In the U.S. today, the typical person com<strong>in</strong>gout <strong>of</strong> a scientific education doesn’t know what a scientificpr<strong>in</strong>ciple is. And the problem is illustrated by thedebates <strong>in</strong> the correspondence between Albert E<strong>in</strong>ste<strong>in</strong>and his friend Max Born, <strong>in</strong> a book published <strong>of</strong> theseletters between them, on this subject. <strong>The</strong> typical tra<strong>in</strong>edscientist today, does not know what a physical pr<strong>in</strong>cipleis; he knows a mathematical formula. <strong>The</strong> name <strong>of</strong> aphysical pr<strong>in</strong>ciple for him, is simply a mathematical formula.He does not understand, from an experimentalstandpo<strong>in</strong>t, how you construct the experiment whichproves the pr<strong>in</strong>ciple, as a physical pr<strong>in</strong>ciple. And thatthe mathematics is never an accurate representation <strong>of</strong>pr<strong>in</strong>ciple. It is simply a symbolic reflection <strong>of</strong> the pr<strong>in</strong>ciple,the experimental pr<strong>in</strong>ciple itself. And it is the elaboration<strong>of</strong> that pr<strong>in</strong>ciple <strong>in</strong> its richer form, beyond themathematical formula, which expresses creativity.<strong>The</strong> same th<strong>in</strong>g is true <strong>of</strong> poetry. Most <strong>of</strong> today’s popularpoetry is garbage. Today’s popular music isgarbage. <strong>The</strong>re is no creativity expressed <strong>in</strong> it. Yes,there’s <strong>in</strong>novation. But <strong>in</strong>novation, like pretend<strong>in</strong>gyou’re hav<strong>in</strong>g sex with a monkey, is not really creativity.It’s the ability to discover a universal pr<strong>in</strong>ciple, to discoversometh<strong>in</strong>g which lies beyond the formal, “logical,”so-called, form <strong>of</strong> expression, <strong>of</strong> description <strong>of</strong> th<strong>in</strong>gs.9


<strong>The</strong> Olympian Zeus, who punished Prometheus for giv<strong>in</strong>g fire tomank<strong>in</strong>d, is the model for today’s <strong>Synarchist</strong> oligarchy, whichbelieves that, “Man should not be allowed to discover universalphysical pr<strong>in</strong>ciples.” Pa<strong>in</strong>t<strong>in</strong>g <strong>of</strong> “Zeus and <strong>The</strong>tis” (1811), byJean-Auguste-Dom<strong>in</strong>que Ingres.That is what drives society. That’s what the difference isbetween man and a beast.Now, if you look at it from that standpo<strong>in</strong>t, there’s amoral implication <strong>in</strong>volved. Man is not evil. Man is not<strong>in</strong>herently wicked. Man is <strong>in</strong>herently good. But the<strong>in</strong>herent goodness <strong>of</strong> mank<strong>in</strong>d, is expressed <strong>in</strong> thatwhich makes man different than an ape. And that differenceis the power <strong>of</strong> creativity, the power <strong>of</strong> the humanbe<strong>in</strong>g to discover universal pr<strong>in</strong>ciples <strong>of</strong> the universe,and to apply those pr<strong>in</strong>ciples to chang<strong>in</strong>g man’s practice.This applies not only to practice <strong>in</strong> terms <strong>of</strong> man’smastery <strong>of</strong> nature, physical nature; it also concernsman’s relationship to man, creative relationships <strong>of</strong>man. <strong>The</strong> characteristic <strong>of</strong> a society which can do that,s<strong>in</strong>ce every society has a language which is more thanjust a language, it’s a language-culture, it has to be done<strong>in</strong> terms <strong>of</strong> the language-culture. Because it’s <strong>in</strong> terms <strong>of</strong>the language-culture that we communicate with eachother. And it’s the ironies <strong>of</strong> communication, not the literalstatements, which def<strong>in</strong>e the mean<strong>in</strong>g <strong>of</strong> a culture.It’s the ironies <strong>of</strong> music, which def<strong>in</strong>e music, not theexplicit notes <strong>of</strong> the score: How do you perform theth<strong>in</strong>g, to make it work? And you won’t get that, by read<strong>in</strong>gthe score. You have to know how to do that, as some<strong>of</strong> our young people have discovered, more and more.So, the po<strong>in</strong>t is, man is essentially good. <strong>The</strong> idea thatman is necessarily evil, is primarily evil, and has to berescued from be<strong>in</strong>g man, is false! It’s a fraud! Man is<strong>in</strong>tr<strong>in</strong>sically good. <strong>The</strong> best liv<strong>in</strong>g th<strong>in</strong>g <strong>in</strong> this universe:Man is good!But! Man can be corrupted. And he’s corrupted, particularly,by the Olympian Zeus, the prototype <strong>of</strong> Satan,who says, “Man shall not discover pr<strong>in</strong>ciples, and applythese pr<strong>in</strong>ciples to the improvement <strong>of</strong> mank<strong>in</strong>d’s powerto exist <strong>in</strong> the universe.”What we need as a driver, is not a system <strong>of</strong> account<strong>in</strong>g.When you’re discuss<strong>in</strong>g economics, throw theaccountants out <strong>of</strong> the room, because you won’t get aneconomics discussion. When you want to discuss economics,you discuss creativity. You discuss how you balancephysical actions, and coord<strong>in</strong>ate them, <strong>in</strong> order tocreate an <strong>in</strong>crease <strong>in</strong> the power <strong>of</strong> man to live, and thepower <strong>of</strong> his ability to produce: creativity.What is lost today, is, we’ve lost contact, especiallyunder the <strong>in</strong>fluence <strong>of</strong> the Baby-Boomer reign, we’velost contact with the idea <strong>of</strong> creativity. Creativity is nolonger a motive. <strong>The</strong> desire to get <strong>in</strong>to a plant, and produceand <strong>in</strong>novate, is no longer there. <strong>The</strong> idea to makemoney! How to take money, not how to earn it, and howto account for tak<strong>in</strong>g the money—or not account<strong>in</strong>g forit—is the standard <strong>of</strong> performance.So, the po<strong>in</strong>t is, man is necessarily good. <strong>The</strong> problemwhere we have evil, like the evil <strong>of</strong> Felix Rohatynand his friends, is because we tolerate, <strong>in</strong> society, a standard<strong>of</strong> a conception <strong>of</strong> man which does not correspondto the natural goodness <strong>of</strong> man. And evil <strong>in</strong> humanity issimply a rejection, or flaunt<strong>in</strong>g, <strong>of</strong> the natural goodness<strong>of</strong> the human be<strong>in</strong>g. We teach people how to behave,how to obey orders, how to get rich—by steal<strong>in</strong>g, preferably—nothow to produce.And the typical characteristic <strong>of</strong> the <strong>in</strong>tr<strong>in</strong>sic evil <strong>of</strong>the Baby-Boomer generation, <strong>of</strong> the 68ers, is exactlythis. <strong>The</strong>y said, “We hate blue-collar workers. We hatefarmers. We hate scientific and technological progress.”That was the 68ers. That’s what happened <strong>in</strong>Germany—it’s called the Greenie movement. That’swhat destroyed Germany from with<strong>in</strong>, especially. Whatdestroys France from with<strong>in</strong>. What is destroy<strong>in</strong>g theworld from with<strong>in</strong>.We reject the goodness, that man expresses, <strong>in</strong> terms<strong>of</strong> Classical musical composition, great Classical poetry,great Classical drama, great Classical science. We rejectthose th<strong>in</strong>gs! <strong>The</strong>se th<strong>in</strong>gs express the goodness <strong>of</strong>mank<strong>in</strong>d, his natural goodness. And we <strong>in</strong>troduce anartificial element <strong>of</strong> evil, and what might be called fairly,Satanic evil; <strong>of</strong> the idea <strong>of</strong> hav<strong>in</strong>g a society <strong>in</strong> which peopledo not produce <strong>in</strong> factories and farms, do not createideas <strong>in</strong> laboratories, do not improve the power <strong>of</strong>mank<strong>in</strong>d over the universe. Do not progress withnuclear energy, immediately, on a mass scale, which isnecessary to save humanity, now! Do not proceed tocrash on thermonuclear fusion, which is desperatelyneeded for man <strong>in</strong> the next generation, now.So, man is not evil. What is evil is the culture we’veimposed upon ourselves, as typified by the 68er culture.10


Clifford A. Kirac<strong>of</strong>e, Jr.<strong>The</strong> U.S.A.: FascismPast and PresentHere is the prepared address by Dr. Clifford A. Kirac<strong>of</strong>e,Jr. to the June 21 New Bretton Woods Sem<strong>in</strong>ar hosted byEIR <strong>in</strong> Berl<strong>in</strong>. Kirac<strong>of</strong>e is a former senior pr<strong>of</strong>essionalstaff member <strong>of</strong> the U.S. Senate Committee on ForeignRelations. Extemporaneous comments Dr. Kirac<strong>of</strong>e madeas he delivered his address, are <strong>in</strong>cluded.Iwould like to try to give some historical context tothe current political situation we f<strong>in</strong>d ourselves <strong>in</strong>,<strong>in</strong> the <strong>United</strong> <strong>States</strong>, and also to try to establishsome l<strong>in</strong>kages or relationships, <strong>in</strong> a historical context,between European Fascism, and fascism as it hasevolved <strong>in</strong> the <strong>United</strong> <strong>States</strong> this past century.I thank our hosts for <strong>in</strong>vit<strong>in</strong>g me to speak today <strong>in</strong>our fifth meet<strong>in</strong>g at this f<strong>in</strong>e venue. Colleagues whoattended the last meet<strong>in</strong>g <strong>in</strong> March will recall I spoke onthe theme <strong>of</strong> “U.S. Imperialism and the Rise <strong>of</strong> theNational Security State,” a project undertaken by theimperial faction <strong>in</strong> the <strong>United</strong> <strong>States</strong> for many decadesnow. Just as a quick aside, you might trace our imperialfaction, to the 1898 war with Spa<strong>in</strong>, as maybe a first realflower<strong>in</strong>g <strong>of</strong> the some <strong>of</strong> the imperial faction’s activities.Today, I will present some background on fascism pastand present <strong>in</strong> the <strong>United</strong> <strong>States</strong>.In today’s political situation <strong>in</strong> the <strong>United</strong> <strong>States</strong> weare, <strong>in</strong> effect, confront<strong>in</strong>g the same forces that attemptedto impose overt fascist rule <strong>in</strong> the <strong>United</strong> <strong>States</strong> dur<strong>in</strong>gthe 1930s. This is a story that is not widely known <strong>in</strong>Europe, or even <strong>in</strong> the <strong>United</strong> <strong>States</strong>. Back then, beg<strong>in</strong>n<strong>in</strong>g<strong>in</strong> 1933, for example, a cabal <strong>of</strong> Wall Streetf<strong>in</strong>anciers and <strong>in</strong>dustrialists, who were enthusiastic supporters<strong>of</strong> Italian Fascism and the German NationalSocialism, plotted a coup d’état aga<strong>in</strong>st PresidentFrankl<strong>in</strong> Roosevelt and our constitutional form <strong>of</strong> government.My paper today considers briefly the follow<strong>in</strong>gmajor po<strong>in</strong>ts: first, the current <strong>in</strong>ternational situationand <strong>United</strong> <strong>States</strong> imperial policy; second, the rise <strong>of</strong>fascism <strong>in</strong> <strong>United</strong> <strong>States</strong> politics; third, Wall Street’sattempted fascist coup d’état <strong>of</strong> 1934; fourth, WallStreet and European Fascism, particularly Synarchy;and fifth, contemporary American fascist ideologyand the post-World War II era, that is to say, the“Conservative Movement” and “New Right” <strong>in</strong> the<strong>United</strong> <strong>States</strong>.EIRNS/James ReaDr. Kirac<strong>of</strong>e exposed the efforts to establish a fascist movement<strong>in</strong> the <strong>United</strong> <strong>States</strong> <strong>in</strong> the 1930s.U.S. Imperialism Constra<strong>in</strong>edWhat is the current context <strong>of</strong> <strong>United</strong> <strong>States</strong> imperialism?At the <strong>in</strong>ternational level, we see the emerg<strong>in</strong>g multipolarenvironment develop<strong>in</strong>g. Russia is com<strong>in</strong>g back fromthe trauma <strong>of</strong> the 1990s, Ch<strong>in</strong>a and India are ris<strong>in</strong>g, andEurope, despite its <strong>in</strong>ternal situation, rema<strong>in</strong>s nonethelessan <strong>in</strong>ternational factor <strong>of</strong> undeniable importance.We are not liv<strong>in</strong>g <strong>in</strong> the so-called “unipolar world”fantasy <strong>of</strong> the American neo-conservatives and that part<strong>of</strong> the imperial faction <strong>in</strong>fluenced by such delusionalpolicy ideas. We are liv<strong>in</strong>g <strong>in</strong> an emerg<strong>in</strong>g multipolar<strong>in</strong>ternational environment which does now, and will<strong>in</strong>creas<strong>in</strong>gly, place constra<strong>in</strong>ts on <strong>United</strong> <strong>States</strong> foreignpolicy, particularly as the extent <strong>of</strong> American <strong>in</strong>ternaleconomic and social weakness and vulnerability becomeapparent. External poll<strong>in</strong>g data, s<strong>in</strong>ce 2003, shows a collapse<strong>of</strong> <strong>United</strong> <strong>States</strong> prestige worldwide as a result <strong>of</strong>the war on Iraq and other related factors.<strong>The</strong> imperial faction has yet to adjust itself to <strong>in</strong>ternationalreality, and this impairs U.S. national security, <strong>in</strong>the short, medium, and long term. <strong>The</strong> imperial factioncont<strong>in</strong>ues to attempt to consolidate a transnational oligarchysubservient to Wash<strong>in</strong>gton, through such mecha-11


nisms as the Bilderberg Group, the TrilateralCommission, and the Davos Group, among others.Dollar-based globalization is another mechanism. Butthere is resistance as, for example, the ShanghaiCooperation Organization <strong>in</strong>dicates, and certa<strong>in</strong>ly, thereare additional calls for a New Bretton Woods to manageour <strong>in</strong>ternational f<strong>in</strong>ancial system.Rather than orient <strong>United</strong> <strong>States</strong> diplomacy to play aconstructive role <strong>in</strong> organiz<strong>in</strong>g the emerg<strong>in</strong>g multipolarworld on Westphalian pr<strong>in</strong>ciples, the Bush WhiteHouse, s<strong>in</strong>ce 2001, has sought to impose its concept <strong>of</strong>unilateral global hegemony, with disastrous consequences.Just this year alone, President Bush <strong>in</strong>sulted Ch<strong>in</strong>a byhis gross mishandl<strong>in</strong>g <strong>of</strong> the state visit <strong>of</strong> Ch<strong>in</strong>esePresident Hu J<strong>in</strong>tao. No <strong>of</strong>ficial state d<strong>in</strong>ner was<strong>of</strong>fered, and the White House gave press credentials to awell-known Falun Gong activist, who then proceeded to<strong>in</strong>sult the Ch<strong>in</strong>ese President. Vice President Dick Cheneyfollowed up by <strong>in</strong>sult<strong>in</strong>g Russia dur<strong>in</strong>g a major speech<strong>in</strong> Lithuania. As an additional follow-up, Secretary <strong>of</strong>State Condi Rice proceeded to <strong>in</strong>sult Russia on its <strong>in</strong>ternalsituation, and portrayed Ch<strong>in</strong>a as a “negative force”<strong>in</strong> Asia.Given Iran’s powerful position <strong>in</strong>side Iraq and otherfactors, an orderly withdrawal <strong>of</strong> <strong>United</strong> <strong>States</strong> forceswill require a regional arrangement supported by themajor powers and the <strong>United</strong> Nations. <strong>The</strong> <strong>United</strong> <strong>States</strong>must eventually make arrangements with Iran <strong>in</strong> orderto work out a regional settlement that would <strong>in</strong>volveIraq’s neighbors, namely Syria, Jordan, Saudi Arabia,and Kuwait. Such a regional solution necessarily mustbe coord<strong>in</strong>ated with Russia, Ch<strong>in</strong>a, the EU, Japan, andthe <strong>United</strong> Nations.Gen. William Odom, a respected former director <strong>of</strong>the National Security Agency (NSA), recently said thatthe war <strong>in</strong> Iraq is the greatest strategic mistake <strong>in</strong> thehistory <strong>of</strong> the <strong>United</strong> <strong>States</strong>. I certa<strong>in</strong>ly agree with thegeneral’s view, but would add that many <strong>of</strong> us were say<strong>in</strong>gthis publicly back <strong>in</strong> 2002, months before the <strong>United</strong><strong>States</strong> launched the war. <strong>The</strong> ideologically driven imperialfaction <strong>in</strong> control <strong>of</strong> <strong>United</strong> <strong>States</strong> policy would notlisten to reason.When a nation makes a strategic mistake, it pays aheavy price over an extended period <strong>of</strong> time.<strong>The</strong> Vietnam War had many associated costs <strong>in</strong> additionto the unnecessary loss <strong>of</strong> blood and treasure. <strong>The</strong><strong>United</strong> <strong>States</strong> was alienated from world op<strong>in</strong>ion andfrom our European allies. But more than that, conditionswere created for severe domestic economic consequences.<strong>The</strong>se negative consequences arose directlyfrom the massive costs <strong>of</strong> the war, added to the costs <strong>of</strong>President Johnson’s simultaneous massive domestic“Great Society” spend<strong>in</strong>g program. Our society was tornapart for years by the stress <strong>of</strong> an unjust and unnecessarywar.What were the negative economic consequences?In one word: “stagflation.” From the late 1960s untilthe mid 1980s, the <strong>United</strong> <strong>States</strong> experienced <strong>in</strong>flationtogether with economic stagnation, or recession. <strong>The</strong>Nixon Adm<strong>in</strong>istration did not solve the problem. <strong>The</strong>Ford Adm<strong>in</strong>istration did not solve the problem. <strong>The</strong>Carter Adm<strong>in</strong>istration did not solve the problem. <strong>The</strong>Reagan Adm<strong>in</strong>istration, through a massive militaryspend<strong>in</strong>g program—we can call this “militaryKeynesianism”—was able to alter the situation somewhatby plung<strong>in</strong>g the nation further <strong>in</strong>to unnecessarydebt. F<strong>in</strong>ally, dur<strong>in</strong>g the Cl<strong>in</strong>ton Adm<strong>in</strong>istration, the<strong>United</strong> <strong>States</strong> had a positive economic recovery and performancethat would have left our country <strong>in</strong> goodshape, had not the Bush Adm<strong>in</strong>istration undertaken acatastrophic foreign policy.But, just <strong>in</strong> the last few weeks, we have started to seethat old word “stagflation” com<strong>in</strong>g back <strong>in</strong>to the publicdiscourse. We have <strong>in</strong>creas<strong>in</strong>g <strong>in</strong>flation together with aslowed economy, under the general condition <strong>of</strong> “tw<strong>in</strong>deficits,” mean<strong>in</strong>g the ever-<strong>in</strong>creas<strong>in</strong>g domestic budgetdeficit and current account deficit.Perhaps you did not notice that, <strong>in</strong> March <strong>of</strong> thisyear, the White House stopped mak<strong>in</strong>g public the “M3”monetary statistic. This political move was, <strong>of</strong> course,undertaken to make more opaque the dis<strong>in</strong>tegrat<strong>in</strong>g<strong>United</strong> <strong>States</strong> economic situation, with implications forthe dollar, by obscur<strong>in</strong>g this significant measure <strong>of</strong>monetary <strong>in</strong>flation.<strong>The</strong> Rise <strong>of</strong> Fascism <strong>in</strong> <strong>United</strong> <strong>States</strong>PoliticsWhat is fascism? As one succ<strong>in</strong>ct def<strong>in</strong>ition has it:“Fascism is the open terrorist dictatorship <strong>of</strong> the mostreactionary, most chauv<strong>in</strong>ist, and most imperialist elements<strong>of</strong> f<strong>in</strong>ance capital.” 1What are the ma<strong>in</strong> features <strong>of</strong> fascism? <strong>The</strong>y <strong>in</strong>clude:the rise <strong>of</strong> a demagogic leader sponsored by a plutocraticoligarchy, the curtailment <strong>of</strong> civil liberties, the elim<strong>in</strong>ation<strong>of</strong> a free press, the emasculation <strong>of</strong> labor and thelabor movement, and the destruction <strong>of</strong> <strong>in</strong>tellectual andpolitical opposition. 2How did this come about? Let’s take a look at the1930s <strong>in</strong> the <strong>United</strong> <strong>States</strong>, the political situation then,which <strong>in</strong>volved the rise <strong>of</strong> an American form <strong>of</strong> fascism,unfortunately.Pr<strong>of</strong>. Gaetano Salvem<strong>in</strong>i, a famous anti-Fascist <strong>in</strong>tellectualand member <strong>of</strong> the Italian Socialist Party,warned <strong>of</strong> a “new brand <strong>of</strong> fascism” <strong>in</strong> the <strong>United</strong> <strong>States</strong>.While teach<strong>in</strong>g <strong>in</strong> exile at Harvard, dur<strong>in</strong>g the 1930s, hepo<strong>in</strong>ted to what he called “fascism <strong>of</strong> corporate bus<strong>in</strong>essenterprise <strong>in</strong> this country.”Other voices <strong>in</strong> the 1930s, confront<strong>in</strong>g the fascist1. 13th Plenum <strong>of</strong> the Executive Committee <strong>of</strong> the CommunistInternational, Moscow 1933.2. For background see, Hans Rogger and Eugen Weber eds., <strong>The</strong>European Right. A Historical Pr<strong>of</strong>ile (Berkeley: University <strong>of</strong>California Press, 1966) and Ernst Nolte, Der Faschismus <strong>in</strong>se<strong>in</strong>er Epoche. Action française, italienischer Faschismus,Nationalsozialismus, (Munich: 1965).12


challenge, were heard from members <strong>of</strong> PresidentRoosevelt’s own Cab<strong>in</strong>et.Harold Ickes (1874-1952), a Progressive Republicanwho served <strong>in</strong> Frankl<strong>in</strong> Roosevelt’s Cab<strong>in</strong>et dur<strong>in</strong>g theNew Deal, forcefully condemned fascism <strong>in</strong> a speech tothe American Civil Liberties Union on Dec. 8, 1937. 3 Hepo<strong>in</strong>ted to “the ability and will<strong>in</strong>gness to turn the concentratedwealth <strong>of</strong> America aga<strong>in</strong>st the welfare <strong>of</strong>America.” He said,Let no one sleepily believe that our democratic form <strong>of</strong>government is necessarily secure for all time to come.We have seen dictatorships <strong>in</strong> other lands reach out anddestroy constitutional democracies, states comb<strong>in</strong>e notfor protection but for aggression. We have discoveredthat Fascism has not been quarant<strong>in</strong>ed, but that it iscapable <strong>of</strong> leap<strong>in</strong>g wide oceans.Well, what happened back <strong>in</strong> the 1930s? I would just<strong>in</strong>terject, parenthetically, that this is a time when ourcurrent President’s grandfather was quite active on WallStreet—that family was quite active on Wall Street.As I said at the outset, <strong>in</strong> today’s political situation <strong>in</strong>the <strong>United</strong> <strong>States</strong> we are, <strong>in</strong> effect, confront<strong>in</strong>g the sameforces that attempted to impose fascism <strong>in</strong> the <strong>United</strong><strong>States</strong> dur<strong>in</strong>g the 1930s. Back then, beg<strong>in</strong>n<strong>in</strong>g <strong>in</strong> 1933, acabal <strong>of</strong> Wall Street f<strong>in</strong>anciers and <strong>in</strong>dustrialists, whowere enthusiastic supporters <strong>of</strong> International Fascism <strong>in</strong>Italy and Germany, and were well <strong>in</strong>troduced to thehigher circles <strong>of</strong> Europe, supported various movements<strong>of</strong> <strong>in</strong>ternational Fascism <strong>in</strong> Germany, France, Italy, andEngland. Many <strong>of</strong> the American bus<strong>in</strong>essmen <strong>in</strong>volved,were <strong>in</strong>timately <strong>in</strong>volved <strong>in</strong> bus<strong>in</strong>ess arrangements withthese very European f<strong>in</strong>ancial and <strong>in</strong>dustrial circles.This cabal plotted a coup d’état aga<strong>in</strong>st PresidentFrankl<strong>in</strong> Roosevelt and our Constitution. Let me recallthe words <strong>of</strong> Ambassador William E. Dodd, Frankl<strong>in</strong>Roosevelt’s Ambassador to Germany. While here <strong>in</strong> ourembassy, he watched American bus<strong>in</strong>essmen, one afterthe other, come to Germany <strong>in</strong> support <strong>of</strong> the Hitlerregime. In 1937, he referred to the American section <strong>of</strong>the transnational fascist oligarchy <strong>of</strong> the era as follows:A clique <strong>of</strong> U.S. <strong>in</strong>dustrialists is hell-bent to br<strong>in</strong>g afascist state to supplant our democratic governmentand is work<strong>in</strong>g closely with the fascist regime <strong>in</strong>Germany and Italy. I have had plenty <strong>of</strong> opportunity <strong>in</strong>my post <strong>in</strong> Berl<strong>in</strong> to witness how close some <strong>of</strong> ourAmerican rul<strong>in</strong>g families are to the Nazi regime. <strong>The</strong>yextended aid to help Fascism occupy the seat <strong>of</strong> power,and they are help<strong>in</strong>g to keep it there.Fortunately, the 1933-34 coup plot was foiled byPresident Roosevelt. But after Roosevelt’s death, thecabal was able to cont<strong>in</strong>ue its program for a fascist andimperial America dur<strong>in</strong>g the Truman Adm<strong>in</strong>istration,through the Cold War era, and down to today’s White3. For valuable <strong>in</strong>sight <strong>in</strong>to the New Deal, see, <strong>The</strong> Secret Diary <strong>of</strong>Harold L. Ickes. <strong>The</strong> First Thousand Days 1933-1936 (New York:Simon & Schuster, 1953).House and Congress.Simply put, upon Frankl<strong>in</strong> Roosevelt’s election <strong>in</strong>1932, the Wall Street cabal took a decision to use strategiesand methods that had been used by Fascist circles<strong>in</strong> Europe, to ga<strong>in</strong> <strong>in</strong>fluence and political power. <strong>The</strong>Wall Street cabal was well <strong>in</strong>troduced <strong>in</strong>to the highercircles <strong>in</strong> Europe that supported the various movements<strong>of</strong> International Fascism, and the Nazi movement, <strong>in</strong>Germany, France, Italy, and England, because many <strong>of</strong>the American bus<strong>in</strong>essmen <strong>in</strong>volved <strong>in</strong> the Wall Streetcabal were <strong>in</strong>timately <strong>in</strong>volved <strong>in</strong> bus<strong>in</strong>ess arrangementswith these European f<strong>in</strong>ancial and <strong>in</strong>dustrial circles. 4<strong>The</strong> strategies and methods <strong>of</strong> which I am speak<strong>in</strong>g<strong>in</strong>clude the formation <strong>of</strong> action committees and massmovements, <strong>in</strong>clud<strong>in</strong>g violent organizations, which<strong>in</strong>volved political as well as religious appeals to the middleand work<strong>in</strong>g classes. <strong>The</strong> elite circles <strong>in</strong>volved <strong>in</strong> theWall Street cabal established their own higher-levelorganizations to coord<strong>in</strong>ate their own activities and theactivities <strong>of</strong> the mass organizations which they causedto come <strong>in</strong>to be<strong>in</strong>g.Wall Street’s Fascist ‘Liberty League’But let me expla<strong>in</strong> a little bit more about some <strong>of</strong> theforces beh<strong>in</strong>d this bus<strong>in</strong>ess plot.Let me comment briefly on the activities <strong>of</strong> the socalled“American Liberty League” (or simply “LibertyLeague”) organization, a powerful elite organizationthat the Wall Street cabal formed <strong>in</strong> 1933 and 1934, andwhich operated until 1940. I will place particularemphasis on the relationship between the fascist U.S.organizations and their counterparts <strong>in</strong> Europe.<strong>The</strong> Liberty League was <strong>in</strong>terfaced with a variety <strong>of</strong>fascist organizations, specifically modelled on EuropeanFascist organizations such as the French Croix de Feu. 5<strong>The</strong> f<strong>in</strong>ancial and big bus<strong>in</strong>ess <strong>in</strong>terests beh<strong>in</strong>d theLiberty League <strong>in</strong> the <strong>United</strong> <strong>States</strong> paralleled andworked with the Confederazione dell’Industria—Olivetti,Agnelli, and that cabal—that put Mussol<strong>in</strong>i <strong>in</strong>to power,and the Thyssen-Krupp-Voegeler-Flick network that putHitler <strong>in</strong>to power.<strong>The</strong> formation <strong>of</strong> the “American Liberty League” wasannounced on Aug. 23, 1934. Its <strong>in</strong>tent was to overturnthe New Deal, President Frankl<strong>in</strong> Roosevelt, and theConstitution. <strong>The</strong> leadership <strong>of</strong> the organization com-4. For background, see, Charles Higham, Trad<strong>in</strong>g with the Enemy.<strong>The</strong> Nazi-American Money Plot 1933-1949 (New York: Barnesand Noble, 1983); William C. McNeill, American Money and theWeimar Republic. Economics and Politics on the Eve <strong>of</strong> theGreat Depression (New York: Columbia University Press, 1986);Henry Ashby Turner, Jr., German Big Bus<strong>in</strong>ess and the Rise <strong>of</strong>Hitler (New York: Oxford, 1985); Joseph Bork<strong>in</strong>, <strong>The</strong> Crime andPunishment <strong>of</strong> I.G. Farben (New York: <strong>The</strong> Free Press, 1978);Richard Sasuly, IG Farben (New York: Boni Gaer, 1947); L.Wulfsohn et G. Wernle, L’Evasion des Capitaux Alemands(Paris: Société Anonyme d’Editions, 1923; P.F. de Villemarest,Les Sources F<strong>in</strong>ancières du Nazisme (Cierrey, France: EditionsCEI, 1984).5. For background on the French Right see, Eugen Weber,“France,” <strong>in</strong> Rogger and Weber, op. cit. pp. 71-127.13


prised prom<strong>in</strong>ent members <strong>of</strong> the Wall Street plutocracyand a number <strong>of</strong> prom<strong>in</strong>ent politicians, Democrat andRepublican.This American Liberty League was to impose a fascistform <strong>of</strong> government on the <strong>United</strong> <strong>States</strong>, by work<strong>in</strong>gbeh<strong>in</strong>d the scenes to <strong>in</strong>fluence developments <strong>in</strong> highpolitics.Among the key Wall Street and big bus<strong>in</strong>ess <strong>in</strong>terestsbeh<strong>in</strong>d the Liberty League were the House <strong>of</strong> Morgan, theDuPonts, and the Kuhn Loeb <strong>in</strong>vestment-bank<strong>in</strong>g <strong>in</strong>terests.Representatives <strong>of</strong> <strong>in</strong>dustrial <strong>in</strong>terests such as GeneralMotors (controlled by DuPont <strong>in</strong>terests), U.S. Steel (l<strong>in</strong>kedto the Morgan <strong>in</strong>terests), and Rem<strong>in</strong>gton Arms (controlledby DuPont) were also deeply <strong>in</strong>volved. <strong>The</strong> publish<strong>in</strong>g<strong>in</strong>dustry was represented by the Hearst <strong>in</strong>terests.Members <strong>of</strong> the Liberty League organization were part<strong>of</strong> the prior “Bus<strong>in</strong>ess Plot” <strong>of</strong> 1933-34 which had plannedan armed coup d’état aga<strong>in</strong>st President Roosevelt. <strong>The</strong> plotwas exposed by the very U.S. Mar<strong>in</strong>e Corps general theWall Street cabal thought they had recruited to lead thecoup, Maj. Gen. Smedley Butler, the man they sought toimpose as dictator on the <strong>United</strong> <strong>States</strong>. He played alongwith the plot, and then immediately revealed the plot toPresident Roosevelt, whom he greatly admired, and thenexposed it publicly <strong>in</strong> newspaper <strong>in</strong>terviews and dur<strong>in</strong>gtestimony before a special <strong>in</strong>vestigative committee <strong>in</strong> the<strong>United</strong> <strong>States</strong> House <strong>of</strong> Representatives, the McCormack-Dickste<strong>in</strong> Committee. 6 <strong>The</strong> coup d’état was foiled.Nonetheless, this organization cont<strong>in</strong>ued to operate,publicly, and <strong>in</strong>cluded very top leaders <strong>of</strong> both theDemocratic Party and the Republican Party.So now we can see a picture develop<strong>in</strong>g <strong>in</strong> our <strong>in</strong>ternalpolitics <strong>in</strong> the 1930s, <strong>in</strong>volv<strong>in</strong>g top-level DemocraticParty persons, <strong>in</strong>clud<strong>in</strong>g the chairman <strong>of</strong> the NationalDemocratic Party himself, even Al Smith, formerDemocratic Party Presidential candidate, and topRepublican Congressmen and Senators, align<strong>in</strong>g aga<strong>in</strong>stthe New Deal, and align<strong>in</strong>g beh<strong>in</strong>d fascism. So this is apenetration <strong>of</strong> both political parties, which I would likeus to bear <strong>in</strong> m<strong>in</strong>d.<strong>The</strong> McCormack-Dickste<strong>in</strong> Committee was establishedto <strong>in</strong>vestigate the events <strong>of</strong> 1933-34 to determ<strong>in</strong>eto what extent an actual coup plot, had been <strong>in</strong> motion.<strong>The</strong> committee concluded there had been such a plotbut specific <strong>in</strong>formation and testimony as to the WallStreet connection was suppressed. Accord<strong>in</strong>g to theCommittee report:In the last few weeks <strong>of</strong> the committee’s <strong>of</strong>ficial life itreceived evidence show<strong>in</strong>g that certa<strong>in</strong> persons hadmade an attempt to establish a fascist government <strong>in</strong>this country. <strong>The</strong>re is no question that these attemptswere discussed, were planned, and might have beenplaced <strong>in</strong> execution when and if the f<strong>in</strong>ancial backers6. <strong>The</strong> members <strong>of</strong> the committee were: John W. McCormack (D-Mass.), Samuel Dickste<strong>in</strong> (D-N. Y.), Carl May Weideman (D-Mich.), Charles Kramer (D-Calif.), Thomas A. Jenk<strong>in</strong>s (R-Ohio), James Willis Taylor (R-Tenn.), Ulysses Samuel Guyer(R-Kan.), Thomas W. Hardwick, Counsel.deemed it expedient. This committee received evidencefrom Maj. Gen. Smedley D. Butler (retired), twicedecorated by the Congress <strong>of</strong> the <strong>United</strong> <strong>States</strong>. Hetestified before the committee as to conversations withone Gerald C. MacGuire, <strong>in</strong> which the latter is alleged tohave suggested the formation <strong>of</strong> a fascist army underthe leadership <strong>of</strong> General Butler.MacGuire denied these allegationsunder oath, but your committeewas able to verify all thepert<strong>in</strong>ent statements made byGeneral Butler, with the exception<strong>of</strong> the direct statement suggest<strong>in</strong>gthe creation <strong>of</strong> the organization.This, however, was corroborated<strong>in</strong> the correspondence <strong>of</strong>MacGuire with his pr<strong>in</strong>ci-RobertSterl<strong>in</strong>g Clarkpal, Robert Sterl<strong>in</strong>gClark, <strong>of</strong> New York City, whileMacGuire was abroad study<strong>in</strong>g the various forms <strong>of</strong> veteransorganizations <strong>of</strong> Fascist character. 7 <strong>The</strong> work <strong>of</strong>this committee later led to the formation <strong>of</strong> the U.S.House Un-American Activities Committee (HUAC)which was authorized to <strong>in</strong>vestigate subversiveCommunist and fascist activity <strong>in</strong> the <strong>United</strong> <strong>States</strong>.Congressman John McCormack later became Speaker<strong>of</strong> the House, 1961-71.With respect to the Bus<strong>in</strong>ess Plot, certa<strong>in</strong> featuresdeserve scrut<strong>in</strong>y. MacGuire, a Wall Street bond salesman,was recruited by a circle <strong>of</strong> f<strong>in</strong>anciers to first collect<strong>in</strong>formation <strong>in</strong> Europe <strong>in</strong> 1933 about the methods<strong>of</strong> Fascist organizations, and then to be the <strong>in</strong>termediarybetween the Wall Street cabal and General Butler.MacGuire was employed as a bond salesman by RobertSterl<strong>in</strong>g Clark (1877-1956), Yale graduate and heir to theS<strong>in</strong>ger Sew<strong>in</strong>g Mach<strong>in</strong>e fortune, and an art collectorwho lived <strong>in</strong> Paris. MacGuire had been active <strong>in</strong> theAmerican Legion, a World War I veterans’ organizationestablished by the Morgan <strong>in</strong>terests.With Clark <strong>in</strong> the plot wasGrayson Mallet-Prevost Murphy,head <strong>of</strong> a Wall Street brokeragehouse and director <strong>of</strong> Morganalignedcompanies. 8 Murphy, afounder <strong>of</strong> the American Legion,became the treasurer <strong>of</strong> theLiberty League. Murphy, who wasa graduate <strong>of</strong> West Po<strong>in</strong>t, had aprior record <strong>of</strong> <strong>in</strong>ternationalRobert Sterl<strong>in</strong>g ClarkGraysonMallet-Prevost Murphy7. U.S. House <strong>of</strong> Representatives, 74th Congress, 1st Session, <strong>The</strong>Special Committee on Un-American Activities Authorized toInvestigate Nazi Propaganda and Certa<strong>in</strong> Other PropagandaActivities.8. He was a director <strong>of</strong> the Guaranty Trust Company, AnacondaCopper, Chile Copper, Goodyear Tire, Bethlehem Steel, and theNew York Transportation Company. He was decorated withthe Crown <strong>of</strong> Italy by the Italian Fascist regime.14


<strong>in</strong>trigue and was used byPresident <strong>The</strong>odore Roosevelt forsecret missions, particularly <strong>in</strong>Lat<strong>in</strong> America.<strong>The</strong> American Legion war veterans’organization was established<strong>in</strong> 1919. <strong>The</strong> NationalCommander <strong>of</strong> the AmericanLegion <strong>in</strong> 1922-23, Col. Alv<strong>in</strong>Owsley (1888-1967), put the matterclearly when he said, “If everneeded, the American Legionstands ready to protect our country’s <strong>in</strong>stitutions andideals as the Fascisti dealt with the destructionists whomenaced Italy. Do not forget that the Fascisti are to Italywhat the American Legion isCol. Alv<strong>in</strong> Owsleyto the<strong>United</strong> <strong>States</strong>.” 9 In 1931, the National Commander <strong>of</strong>the American Legion, Ralph T. O’Neill, gave the ItalianAmbassador to the <strong>United</strong> <strong>States</strong>, a copy <strong>of</strong> a resolution<strong>of</strong> the American Legion Executive Committee prais<strong>in</strong>gMussol<strong>in</strong>i as a great leader.<strong>The</strong> president <strong>of</strong> the LibertyLeague was Jouett Shouse (1879-1968), a former member <strong>of</strong> theU.S. Congress from Kansas (1915-19), and President WoodrowWilson’s Assistant Secretary <strong>of</strong>the Treasury (1919-20). Shouse,a former chairman <strong>of</strong> theDemocratic Party’s NationalExecutive Committee, was marriedto a daughter <strong>of</strong> the Bostonmerchant Filene family. <strong>The</strong> keyCol. Alv<strong>in</strong> OwsleyJouett Shousemembers <strong>of</strong> the Liberty League itself were such bus<strong>in</strong>essand fi-Jouett Shousenancial personalities as:William Knudson <strong>of</strong> General Motors; Nathan L. Miller,counsel <strong>of</strong> U.S. Steel; Irene, Pierre, and LammotDuPont 10 ; Jacob Raskob <strong>of</strong> DuPont and GeneralMotors, and the Hearst <strong>in</strong>terests. Political personalities<strong>in</strong>cluded former Gov. Al Smith <strong>of</strong> New York, theDemocratic presidential candidate <strong>of</strong> 1928. Raskob wasa former chairman <strong>of</strong> the Democratic Party NationalCommittee.Closely associated with the activities <strong>of</strong> the LibertyLeague, and its satellite action organizations such as the“Crusaders,” were <strong>in</strong>fluential members <strong>of</strong> the board <strong>of</strong>the American Jewish Committee: Irv<strong>in</strong>g Lehman, <strong>of</strong>Lehman Brothers; Less<strong>in</strong>g J. Rosenwald, chairman <strong>of</strong>Sears Roebuck; Roger W. Strauss, director <strong>of</strong> Revere9. As quoted <strong>in</strong> the Journal <strong>of</strong> the National Education Association.See the Owsley related website: http://www.library.unt.edu/archives/Owsley/open<strong>in</strong>gpage/<strong>in</strong>dex.htm10. Lammot (1880-1952), Irénée (1876-1963), and Pierre (1870-1954) DuPont were the sons <strong>of</strong> Lammot DuPont (1831-84)and Mary Bel<strong>in</strong> (1839-1913), who was <strong>of</strong> Jewish ancestry. Forbackground see, Leonard Mosely, Blood Relations. <strong>The</strong> Riseand Fall <strong>of</strong> the duPonts <strong>of</strong> Delaware (New York: Atheneum,1980).Copper and Brass; Louis Edward Kirste<strong>in</strong>, vice president<strong>of</strong> Filene’s; Joseph M. Proskauer, who was a director<strong>of</strong> the American Liberty League; Henry Ittleson, whowas president <strong>of</strong> the Commercial Investment Trust A.G.<strong>of</strong> Berl<strong>in</strong>; and Albert D. Lasker, who served on theCrusaders board.<strong>The</strong> American Jewish Committee was founded <strong>in</strong>1906 as a foreign-policy lobby group that focussed onhuman rights <strong>in</strong> Russia. Its publication Commentary,edited from 1960-95 by Norman Podhoretz, has beenthe lead<strong>in</strong>g vector for decades promot<strong>in</strong>g so-called “neoconservative”foreign policy and the destabilization <strong>of</strong>the Middle East. 11As for the Crusaders organization I just mentioned, itwas an anti-labor organization opposed to New Dealpolicies whose board <strong>in</strong>cluded Albert D. Lasker, as justnoted; James P. Warburg; and John W. Davis (1873-1955), legal counsel for the Morgan <strong>in</strong>terests and U.S.Steel among others. Davis was the former DemocraticParty Presidential candidate <strong>in</strong> 1924, and lost toRepublican Calv<strong>in</strong> Coolidge. Prior to this he had servedas the U.S. Ambassador at London, 1918-21.Additional satellites <strong>of</strong> the Liberty League were: theSouthern Committee to Uphold the Constitution, theFarmers’ Independence Council, and the Sent<strong>in</strong>els <strong>of</strong> theRepublic.I want to give you a little flavor, just as an example, <strong>of</strong>the th<strong>in</strong>k<strong>in</strong>g <strong>of</strong> one <strong>of</strong> the participants <strong>in</strong> this bus<strong>in</strong>essgroup, Mr. William Randolf Hearst, a well-known publish<strong>in</strong>gmagnate <strong>in</strong> our country, who owned hundreds <strong>of</strong>newspapers.Hearst’s <strong>in</strong>volvement with the Liberty League is significant.<strong>The</strong> Hearst <strong>in</strong>terests <strong>in</strong>terfaced with thef<strong>in</strong>ancial <strong>in</strong>terests <strong>of</strong> West Coast f<strong>in</strong>ancier A.P.Giann<strong>in</strong>i’s TransAmerica company, and Bank <strong>of</strong>America. This bank reportedly handled Mussol<strong>in</strong>i’sf<strong>in</strong>ancial <strong>in</strong>terests <strong>in</strong> the <strong>United</strong> <strong>States</strong>. <strong>The</strong> Hearst<strong>in</strong>terests also <strong>in</strong>terfaced with the British imperial<strong>in</strong>terests <strong>of</strong> Sir Henry Deterd<strong>in</strong>g and his Royal DutchShell group, as well as with Lord Rothermere’s <strong>in</strong>terests<strong>in</strong> Canada. 12 Deterd<strong>in</strong>g and Rothermere providedf<strong>in</strong>ancial support to Sir Oswald Moseley’s Fascistmovement <strong>in</strong> the <strong>United</strong> K<strong>in</strong>gdom. Deterd<strong>in</strong>g madeuse <strong>of</strong> the shipp<strong>in</strong>g company operated by HypoliteWorms to move Royal Dutch Shell oil around theworld. <strong>The</strong> Lazard Frères Paris <strong>of</strong>fice handled RoyalDutch Shell bus<strong>in</strong>ess <strong>in</strong> France. Furthermore, it wasthe Lazard group that organized the Banque Worms<strong>in</strong> the late 1920s.11. See President Bush’s speeches to the American JewishCommittee: “President Attends the American JewishCommittees Centennial D<strong>in</strong>ner,” May 4, 2006 at http://www.whitehouse.gov/news/releases/2006/05/20060504-15.htmland “Remarks By the President to the American JewishCommittee,” May 3, 2001 at http://www.whitehouse.gov/news/releases/2001/05/20010504.html12. On Deterd<strong>in</strong>g see, Glyn Roberts, <strong>The</strong> Most Powerful Man <strong>in</strong> theWorld. <strong>The</strong> Life <strong>of</strong> Sir Henry Deterd<strong>in</strong>g (New York: CoviciFriede, 1938).15


<strong>The</strong> Hearst <strong>in</strong>terestscontrolled an importantshare <strong>of</strong> the Rem<strong>in</strong>gtonArms Corporation <strong>of</strong>which the DuPont <strong>in</strong>terestshad the controll<strong>in</strong>gshare. Rem<strong>in</strong>gton smallarms were reportedly tohave been made availableto 500,000 para-militaryforces operat<strong>in</strong>g <strong>in</strong> theservice <strong>of</strong> the Bus<strong>in</strong>essPlot which planned toseize Wash<strong>in</strong>gton, D.C.,the nation’s capital, byforce.For clarity, let me illustratepress baron William part <strong>of</strong> the plot aga<strong>in</strong>st PresidentWilliam Randolph Hearst wasFrankl<strong>in</strong> Roosevelt <strong>in</strong> 1933-34.Randolph Hearst’s attitudeHe was the major publish<strong>in</strong>gtoward European Fascism magnate <strong>in</strong> the <strong>United</strong> <strong>States</strong> <strong>in</strong>and National Socialism, a the 1930s, and spoke approv<strong>in</strong>glyperspective also promoted <strong>of</strong> the fascist parties <strong>in</strong> Italy andby the Time-Life-Fortune Germany.publish<strong>in</strong>g empire <strong>of</strong>Henry Luce. Let me quote Hearst, speak<strong>in</strong>g <strong>in</strong> the 1930s:<strong>The</strong> fascist party <strong>of</strong> Italy was organized to quell thedisturbances and disorders <strong>of</strong> communism. <strong>The</strong> fascistparty <strong>of</strong> Germany was organized for the same purpose. Itwas <strong>in</strong>tended to and very likely did prevent Germanyfrom go<strong>in</strong>g communist and cooperat<strong>in</strong>g with SovietRussia. This is the great policy, the great achievementthat makes the Hitler regime popular with the Germanpeople. 13That’s probably the major publish<strong>in</strong>g magnate <strong>in</strong> the<strong>United</strong> <strong>States</strong> dur<strong>in</strong>g the 1930s. And if you just take alook at Time magaz<strong>in</strong>e dur<strong>in</strong>g the similar period, youwill note that Mr. Mussol<strong>in</strong>i’s picture appeared on thecover <strong>of</strong> Time magaz<strong>in</strong>e five times.<strong>The</strong> “Bus<strong>in</strong>ess Plot” conspirators <strong>of</strong> 1933, with additionalsupporters, created the Liberty League <strong>in</strong> 1934.This time, the objective was to combat the New Dealand replace Roosevelt <strong>in</strong> the Presidential election <strong>of</strong>1936 by gett<strong>in</strong>g beh<strong>in</strong>d a Republican opponent, whichcame to be Gov. Alf Landon <strong>of</strong> Kansas, a moderate, andironically, himself, a mild supporter <strong>of</strong> the New Deal.Publicly, Landon—and the Republican Party—rejectedLiberty League endorsement.Moderate advisors <strong>of</strong> Landon, however, were pushedaside through Liberty League <strong>in</strong>fluence. One case <strong>in</strong>po<strong>in</strong>t was Pr<strong>of</strong>. Andrew Cordier, who was advis<strong>in</strong>gLandon on foreign policy and <strong>in</strong>ternational relations. Afew years ago, a relative <strong>of</strong> m<strong>in</strong>e, who was a friend <strong>of</strong>Cordier and one <strong>of</strong> his former students, told me thestory <strong>of</strong> how the Liberty League <strong>in</strong>trigued aga<strong>in</strong>st the13. As quoted <strong>in</strong> George Seldes, You Can’t Do That (1937), p. 222.pr<strong>of</strong>essor. But Cordier went on to becomeUndersecretary <strong>of</strong> the <strong>United</strong> Nations <strong>in</strong> charge <strong>of</strong> theGeneral Assembly and Related Affairs from 1946 to1961. He then jo<strong>in</strong>ed the faculty <strong>of</strong> Columbia Universityand rose to become its president.As the 1936 election turned out, Roosevelt crushedLandon, although this did not stop the <strong>in</strong>trigues <strong>of</strong> theLiberty League network and its successors. For example,dur<strong>in</strong>g the Truman Adm<strong>in</strong>istration, Dean Acheson(1893-1971), an <strong>in</strong>fluential Wash<strong>in</strong>gton, D.C. attorney,became Secretary <strong>of</strong> State under President Truman. 14Acheson had been a member <strong>of</strong> the American LibertyLeague.Is it any co<strong>in</strong>cidence today that Condi Rice praisesAcheson and President Bush praises Truman? Certa<strong>in</strong>lynot. We can recall the close bus<strong>in</strong>ess connectionbetween the Bush family and pro-Nazi f<strong>in</strong>ancial and<strong>in</strong>dustrial circles <strong>in</strong> Germany, particularly the Thyssen<strong>in</strong>terests. 15Wall Street and SynarchyHow did all this come about?I mentioned the matter <strong>of</strong> “Synarchy” briefly at one<strong>of</strong> our earlier conferences here <strong>in</strong> Berl<strong>in</strong>. Let me justmake a few brief comments today <strong>in</strong> that regard.Synarchy provided ideological orientation for WallStreet circles with respect to economic, political, andsocial organization.For example, the American Liberty League itself promotedthe social ideas <strong>of</strong> Dr. Alexis Carrel, French biologistand eugenicist associated with French <strong>Synarchist</strong>circles. 16 He had written a number <strong>of</strong> best-sell<strong>in</strong>g books<strong>in</strong> the 1930s. Carrel’s controll<strong>in</strong>g ideas were clearlyexpressed <strong>in</strong> his book Man, This Unknown (L’Hommecet Inconnu), <strong>in</strong> which he argued for mank<strong>in</strong>d to followthe guidance <strong>of</strong> an elite class and to implement enforcedeugenics for population management. It was Carrel whohad first suggested the use <strong>of</strong> gas chambers for eugenicpurposes on a mass basis. Carrel, <strong>in</strong> 1937, jo<strong>in</strong>ed a wellfundedFrench research <strong>in</strong>stitute called the Centre d’Étudesdes Problèmes Huma<strong>in</strong>s (CEPH) operated by JeanCoutrot, an em<strong>in</strong>ence <strong>of</strong> the French Synarchy who alsohad ties to the British Fabian Society via the Huxleysand others.I would note <strong>in</strong> pass<strong>in</strong>g that Carrel’s ideas have <strong>in</strong>fluencedthe ideology <strong>of</strong> contemporary Islamic terrorismvia Sayyed Qutb <strong>of</strong> the Egyptian Muslim Brotherhood14. Acheson’s father, Rev. Edward Campion Acheson, anEnglishman, was an Anglican priest who served <strong>in</strong> Canadabefore immigrat<strong>in</strong>g to the <strong>United</strong> <strong>States</strong> and later becom<strong>in</strong>gBishop <strong>of</strong> Connecticut. His mother, Eleanor Gooderham, wasthe granddaughter <strong>of</strong> William Gooderham, a Canadian distillerymagnate.15. See, Kev<strong>in</strong> Phillips, American Dynasty. Aristocracy, Fortune,and the Politics <strong>of</strong> Deceit <strong>in</strong> the House <strong>of</strong> Bush (New York:Vik<strong>in</strong>g, 2004), passim.16. Frederick Rudolph, “<strong>The</strong> American Liberty League, 1934-1940,” <strong>The</strong> American Historical Review, Vol. 56, No. 1 (Oct.1950), p. 28.16


and Maulana Maududi <strong>of</strong> the Pakistani Jamaat-i-Islaami. 17<strong>The</strong> word “Synarchy,” and its associated ideology,was <strong>in</strong>vented by the 19th-Century French occultistAlexandre St. Yves d’Alveydre (1842-1909), who headedthe esoteric Mart<strong>in</strong>ist Order. Born <strong>in</strong> 1842, he adoptedthe outlook <strong>of</strong> lead<strong>in</strong>g European <strong>in</strong>tellectuals <strong>of</strong> theextreme right, Joseph de Maistre, Louis de Bonald, andthe mystical occultism <strong>of</strong> Fabre d’Olivet (1767-1825),Napoleon’s personal occult advisor.St. Yves created an extreme right ideology to opposewhat he perceived to be “anarchy,” particularly what heperceived to be anarchy among nations. He called hisnew ideology “Synarchy” and revealed it <strong>in</strong> quite somedetail <strong>in</strong> his book Mission des Souvera<strong>in</strong>s, first published<strong>in</strong> 1882.<strong>The</strong> economic dimension <strong>of</strong> Synarchy <strong>in</strong>fluenced the“corporatist” political ideologies and movements <strong>of</strong> theearly 20th Century such as Fascism. Corporative ideologycalled for the organization <strong>of</strong> society with controlheld by the rul<strong>in</strong>g oligarchic and plutocratic class. Laborwas to be crushed and parliamentary government wasto be elim<strong>in</strong>ated.St. Yves’ vision for Europe, as outl<strong>in</strong>ed <strong>in</strong> ChapterXII <strong>of</strong> his book, called for organiz<strong>in</strong>g Europethrough a regional (Europe-wide) council composed<strong>of</strong> corporative chambers <strong>of</strong> economists, f<strong>in</strong>anciers,and <strong>in</strong>dustrialists. At the national level, each countrywould have such a council <strong>of</strong> its own. Through thisprocess, f<strong>in</strong>ance and <strong>in</strong>dustry would be concentrated,and become the ma<strong>in</strong> political power govern<strong>in</strong>g society,a society <strong>in</strong> which labor was to be coerced <strong>in</strong>tosubmission.After World War I, we f<strong>in</strong>d <strong>in</strong> Europe the establishment<strong>of</strong> a number <strong>of</strong> Fascist movements beg<strong>in</strong>n<strong>in</strong>g withMussol<strong>in</strong>i <strong>in</strong> Italy <strong>in</strong> 1919, but then spread<strong>in</strong>g toFrance, Italy, Spa<strong>in</strong>, Portugal, and elsewhere. A remarkablefeature <strong>of</strong> this political phenomenon was thespread <strong>of</strong> secret underground networks promot<strong>in</strong>gSynarchy <strong>in</strong> order to create Fascist states and fiveFascist regional blocs such as Pan-Europe, Pan-America, Pan-Eurasia, Pan-Asia, and a Fascist BritishCommonwealth.One significant vector <strong>in</strong> all this was the esotericMart<strong>in</strong>ist Order, which penetrated many regularfreemasonic lodges, creat<strong>in</strong>g a certa<strong>in</strong> dangerous dissidence.<strong>The</strong> French <strong>Synarchist</strong>s formed their secret politicalsociety <strong>in</strong> 1922 which was called the MouvementSynarchique d’Empire, as the French police and <strong>in</strong>telligenceservices discovered over a decade later. 18This overall political phenomenon can be justlyviewed as a cont<strong>in</strong>uation <strong>of</strong> the well-organized 19th-Century reaction aga<strong>in</strong>st progressive liberal fraternal17. Rudolph Walter, “Die seltsamen Lehren des Doktor Carrel. Wiee<strong>in</strong> katholischer Arzt aus Frankreich zum Vordenker derradikalen Islamisten wurde,” Die Zeit, 31.07.03, No. 32.18. See, Ge<strong>of</strong>froy de Charnay [pseud.], Synarchie. Panorama de 25Ann´es d’Activité Occulte (Paris: Editions Médicis, 1946).organizations and political movements that fought fornational unity, democracy, constitutionalism, and parliamentarygovernment. 19 One significant feature <strong>of</strong>19th-Century European politics was the creation <strong>of</strong>what we can characterize as police states based to alarge degree on the Napoleonic model. In the 20thCentury, police states reemerge under republican guise.Fascist Ideology: <strong>The</strong> U.S. ‘ConservativeMovement’ and ‘New Right’S<strong>in</strong>ce 9/11, we can see an <strong>in</strong>cipient police-stateprocess develop<strong>in</strong>g more openly <strong>in</strong> the <strong>United</strong> <strong>States</strong>under the framework <strong>of</strong> a so-called “National SecurityState.” But the foundations for this were prepared for anumber <strong>of</strong> decades.After World War II, the so-called “ConservativeMovement” <strong>in</strong> the <strong>United</strong> <strong>States</strong> undertook the penetration<strong>of</strong> the Republican Party. 20 I would like to make itclear that the traditional Republican Party, as establishedby Abraham L<strong>in</strong>coln, has noth<strong>in</strong>g <strong>in</strong> commonwith the radical right-w<strong>in</strong>g ideology <strong>of</strong> the pre-WorldWar II Liberty League or the post-World War II“Conservative Movement” and “New Right.”Nonetheless, today’s Republican Party is <strong>in</strong> the grip<strong>of</strong> the Wall Street-backed “Conservative Movement” and“New Right” l<strong>in</strong>ked to a mass political base <strong>of</strong> religiousFundamentalists committed to theocracy. 21<strong>The</strong> post-World War II “Conservative Movement” and“New Right” are noth<strong>in</strong>g more than the pre-war LibertyLeague operation <strong>in</strong> a more sophisticated form. <strong>The</strong>Presidential candidacy <strong>of</strong> Barry Goldwater <strong>in</strong> 1960opened the door to a penetration <strong>of</strong> the RepublicanParty by the “Conservative Movement.” As I po<strong>in</strong>ted out<strong>in</strong> my paper here this March, the Nixon Adm<strong>in</strong>istration,<strong>in</strong>fluenced <strong>in</strong> particular by George Shultz and his circle,took a dramatic turn toward the erection <strong>of</strong> an imperialPresidency and National Security State. 22Today, the Bush Adm<strong>in</strong>istration, unfortunately, replicatesthe Nixon Adm<strong>in</strong>istration, but is worse. 23Radical Right ideology is promoted through the organized<strong>in</strong>tellectual activity funded by a small group <strong>of</strong> privatefoundations back<strong>in</strong>g a so-called “conservative” and“neo-conservative” ideology that is, <strong>in</strong> fact, similar to theEuropean Fascist ideology <strong>of</strong> the 1920s and 1930s.<strong>The</strong>se foundations <strong>in</strong>clude: the Bradley Foundation, theKoch Foundations, the Smith Richardson Foundation,and the Ol<strong>in</strong> Foundation. Associated “th<strong>in</strong>k tanks”19. For background see, Frederick B. Artz, Reaction andRevolution 1814-1832 (New York: Harpers, 1934).20. For background see, George H. Nash, <strong>The</strong> ConservativeIntellectual Movement <strong>in</strong> the <strong>United</strong> <strong>States</strong> S<strong>in</strong>ce 1945 (NewYork: Basic Books, 1976) and Shadia Drury, Leo Strauss andthe American Right (New York: St. Mart<strong>in</strong>’s Press, 1999).21. See, Kev<strong>in</strong> Phillips, American <strong>The</strong>ocracy (New York: Vik<strong>in</strong>g,2006).22. Arthur M. Schles<strong>in</strong>ger, Jr., <strong>The</strong> Imperial Presidency (Boston:Houghton Miffl<strong>in</strong>, 1973).23. See, John W. Dean, Worse Than Watergate. <strong>The</strong> SecretPresidency <strong>of</strong> George W. Bush (New York: Little Brown, 2004).17


would <strong>in</strong>clude the Heritage Foundation and theAmerican Enterprise Institute, both <strong>of</strong> Wash<strong>in</strong>gton, D.C.<strong>The</strong>se organizations are, <strong>in</strong> essence, cont<strong>in</strong>u<strong>in</strong>g the work<strong>of</strong> the American Liberty League. 24<strong>The</strong> ma<strong>in</strong> <strong>in</strong>tent, <strong>of</strong> either the American version <strong>of</strong>fascism, or the European version, is to <strong>in</strong>crease thepower and <strong>in</strong>fluence <strong>of</strong> <strong>in</strong>ternational f<strong>in</strong>ance and bigbus<strong>in</strong>ess <strong>in</strong> the <strong>in</strong>ternal politics <strong>of</strong> the <strong>United</strong> <strong>States</strong>,first by attack<strong>in</strong>g state <strong>in</strong>stitutions and their proper role<strong>of</strong> oversight and regulation and, secondly by coerc<strong>in</strong>glabor. Promotion <strong>of</strong> the so-called “Chicago School” and“Austrian School” <strong>of</strong> economics is one method used <strong>in</strong>this program to promote oligarchic and plutocratic economicand political power. A significant consequence <strong>of</strong>this process for external policy is, <strong>of</strong> course, the promotion<strong>of</strong> an imperial foreign policy <strong>in</strong> the service <strong>of</strong> <strong>in</strong>ternationalf<strong>in</strong>ance and big bus<strong>in</strong>ess, and the promotion <strong>of</strong>so-called “globalization” to empower a certa<strong>in</strong> transnationaloligarchy.Key features <strong>of</strong> the contemporary “New Right” and“neo-conservative” ideology <strong>in</strong> the <strong>United</strong> <strong>States</strong> aredrawn from three ma<strong>in</strong> European sources: Italiannationalism and Fascism, French Integralism, andGerman National Socialism.With respect to Italian nationalism and Fascism, wecan see the <strong>in</strong>fluence <strong>of</strong> Michael Ledeen, a specialist onItalian political thought, who is a major neo-conservativeth<strong>in</strong>ker <strong>in</strong> the <strong>United</strong> <strong>States</strong>. neo-conservatives,who control our foreign policy, by the way, appear to<strong>in</strong>corporate elements <strong>of</strong> the nationalist thought <strong>of</strong>Enrico Corrad<strong>in</strong>i (1865-1931) together with the Fascistprogram <strong>of</strong> Benito Mussol<strong>in</strong>i. 25 Most strik<strong>in</strong>g is theneo-conservative call for the <strong>United</strong> <strong>States</strong> to have a foreignpolicy <strong>of</strong> “national greatness,” which is preciselythe formulation <strong>of</strong> Corrad<strong>in</strong>i that <strong>in</strong>spired two Italianimperial wars aga<strong>in</strong>st Ethiopia. One can argue that, forthe neo-conservatives, Iraq is Mussol<strong>in</strong>i’s Ethiopia policyrevisited.<strong>The</strong> French <strong>in</strong>tegralism <strong>of</strong> Charles Maurras is paralleled<strong>in</strong> the American “New Right,” <strong>in</strong> both Protestantand Catholic manifestations. Maurras himself wasl<strong>in</strong>ked to the Mart<strong>in</strong>ist Order through his friendshipwith its then Grand Master, Gérard Encausse (1865-1916), who was a follower <strong>of</strong> St. Yves d’Alveydre. <strong>The</strong>Christian Coalition organization which emerged <strong>in</strong>1988, is but one example. In the last few years, we haveseen a revival <strong>of</strong> the ideas <strong>of</strong> the <strong>in</strong>tegralist Catholic,Jean Ousset, himself a vector <strong>of</strong> Synarchy, and once theprivate secretary <strong>of</strong> Charles Maurras, and, some Frenchcolleagues <strong>in</strong>form me, that Mr. Ousset’s operations afterWorld War II, were f<strong>in</strong>anced by the Banque Wormsgroup.With respect to German Fascism, we can see <strong>in</strong> the24. For background <strong>in</strong>formation, see, RIGHT WEB at http://rightweb.irc-onl<strong>in</strong>e.org25. For background on the Right <strong>in</strong> Italy see, Salvatore Salad<strong>in</strong>o,“Italy,” <strong>in</strong> Rogger and Weber, op. cit., pp. 208-260.<strong>United</strong> <strong>States</strong> today the revival, over the last severaldecades, <strong>of</strong> the ideology <strong>of</strong> Carl Schmitt, the Nazi jurist.This ideology, many believe, is directly responsible forthe police-state stance taken by the neo-fascist“Federalist Society” <strong>of</strong> lawyers, established <strong>in</strong> the <strong>United</strong><strong>States</strong> <strong>in</strong> 1982, who have worked <strong>in</strong>side and outside theBush Adm<strong>in</strong>istration to erect what they call the “UnitaryExecutive.” In Berl<strong>in</strong> today, I th<strong>in</strong>k we should be frankand say the Federalist Society for over two decades hadbeen reviv<strong>in</strong>g the Führerpr<strong>in</strong>zip.I discussed the revival <strong>of</strong> Carl Schmitt’s foreign policyconcepts by Paul Nitze, and others, here <strong>in</strong> March.<strong>The</strong>se concepts <strong>in</strong>clude the concept <strong>of</strong> permanent“enmity” and “enemies,” and the necessity for “states <strong>of</strong>emergency.” Such ideas were derived <strong>in</strong> part from thewrit<strong>in</strong>gs <strong>of</strong> the Gustav Ratzenh<strong>of</strong>er (1842-1904), anAustrian General and Social Darw<strong>in</strong>ist sociologist. 26We can place the American Christian Right todaywith<strong>in</strong> the context <strong>of</strong> the Gleichschaltung [Nazification<strong>of</strong> all <strong>in</strong>stitutions] <strong>of</strong> 1933 and the formation <strong>of</strong> theProtestant Reich Church. I would suggest that the 25million hard-core fundamentalists form<strong>in</strong>g PresidentBush’s “political base” <strong>in</strong> the <strong>United</strong> <strong>States</strong>—the 16 millionSouthern Baptists, <strong>in</strong> particular, and another 9 millionAdventists and Pentacostalists, for example—parallel,although <strong>in</strong> a different form and <strong>in</strong> a different time,the German Reich Church. 27In clos<strong>in</strong>g, I would like to suggest, with a sense <strong>of</strong>some urgency, that colleagues here make an effort <strong>in</strong>their research and writ<strong>in</strong>g to focus on comparativestudy <strong>of</strong> contemporary <strong>United</strong> <strong>States</strong> <strong>in</strong>ternal politics,and external policy, with that <strong>of</strong> International Fascism<strong>of</strong> the 1920s and 1930s.Let me aga<strong>in</strong> quote Harold Ickes, the man who organizedprogressive Republican support for PresidentRoosevelt and the New Deal. Be<strong>in</strong>g a Republican, I liketo quote Mr. Ickes. In 1943, <strong>in</strong> the middle <strong>of</strong> World WarII, he said:We should never forget that, <strong>in</strong> an era <strong>of</strong> unrest, ademagogue even as fantastic as Hitler first appeared tobe can develop at such a pace that, before we realize it,he is beyond our catch<strong>in</strong>g. <strong>The</strong>re are men here, and <strong>in</strong>England and <strong>in</strong> France as well, who believe <strong>in</strong> theirhearts that a dictatorship is more desirable thandemocratic self-government. . . . That type <strong>of</strong> Americanbig bus<strong>in</strong>ess and concentrated wealth are not afraid <strong>of</strong> adictatorship, even such a one as Hitler’s, is attested byrecent shock<strong>in</strong>g disclosures with respect to secret and<strong>in</strong>timate bus<strong>in</strong>ess alliances between them and Germanbig bus<strong>in</strong>ess-alliances that deliberately strike at thecommon man. 2826. For example, see, Gustav Ratzenh<strong>of</strong>er, Wesen und Zweck derPolitik (Leizig, 1893).27. See the speech <strong>of</strong> Secretary <strong>of</strong> State Rice to the SouthernBaptist Convention Annual Meet<strong>in</strong>g, June 14, 2006.http://www.state.gov/secretary/rm/2006/67896.htm28. Harold Ickes, <strong>The</strong> Autobiography <strong>of</strong> a Curmudgeon, Reynal &Hitchcock, (1943).18


Jeffrey Ste<strong>in</strong>bergWe Can Beat RohatynAnd the <strong>Synarchist</strong>sJeffrey Ste<strong>in</strong>berg, EIR Counter<strong>in</strong>telligence Editor, gavethis speech to the Berl<strong>in</strong> sem<strong>in</strong>ar on June 27.On July 27, 1944, the U.S. military attaché <strong>in</strong>Algiers sent a report back to Wash<strong>in</strong>gton, discuss<strong>in</strong>gthe fact that even though this <strong>Synarchist</strong>apparatus that Cliff [Kirac<strong>of</strong>e] (see above) discussed afew moments ago, was known to be at the heart <strong>of</strong> themost actively pro-Hitler group<strong>in</strong>g with<strong>in</strong> the Vichy government,that, at the same time, there was grow<strong>in</strong>g evidencethat the same <strong>Synarchist</strong> networks were alsoactively <strong>in</strong>volved <strong>in</strong> penetrat<strong>in</strong>g the Free French movement<strong>of</strong> Charles de Gaulle, which had set up a government-<strong>in</strong>-exile<strong>in</strong> Algiers <strong>in</strong> North Africa. <strong>The</strong> report—I’lljust read a few brief excerpts from it:“Some <strong>of</strong> the oldest and formerly most faithful supporters<strong>of</strong> General de Gaulle are worried by what theycall a tendency to let ‘Synarchism’ penetrate even thehighest brackets <strong>of</strong> the Algiers Adm<strong>in</strong>istration. It isbelieved that General de Gaulle, up until recently,opposed Synarchism, which is a strongly reactionarymovement, f<strong>in</strong>anced by the Haute Banque. He has evenordered a confidential study to be made on the subject,a copy <strong>of</strong> which has been seen by American <strong>of</strong>ficers, buts<strong>in</strong>ce its dissem<strong>in</strong>ation is not known, it was aga<strong>in</strong> reproduced.. . . Our source <strong>of</strong> <strong>in</strong>formation claims that whilethere is no direct evidence that General de Gaulle hashad a change <strong>of</strong> heart <strong>in</strong> regard to this movement, some<strong>of</strong> the people around him are known to have recentlybecome adherents to it. In this connection the M<strong>in</strong>ister<strong>of</strong> War Diethelm, Colonel Passey and CommandantPelabon are prom<strong>in</strong>ently mentioned.”And it goes on to discuss further <strong>in</strong>vestigations thatde Gaulle had ordered <strong>in</strong>to the <strong>Synarchist</strong> operations <strong>in</strong>North Africa.Now, appended to this document, which we obta<strong>in</strong>edby special arrangement dur<strong>in</strong>g the mid-1980s, from theU.S. National Archives <strong>in</strong> Wash<strong>in</strong>gton, D.C., is a secretappendix, which gives the name <strong>of</strong> about 80 <strong>in</strong>dividualsand <strong>in</strong>stitutions that were known to be at the very heart<strong>of</strong> the <strong>Synarchist</strong> apparatus. And about halfway downthe first column, after go<strong>in</strong>g through the names <strong>of</strong> anumber <strong>of</strong> very well-known people, associated both withthe Vichy government and with the Banque Worms, weEIRNS/James ReaJeffrey Ste<strong>in</strong>berg revealed the “smok<strong>in</strong>g gun” <strong>in</strong> the case aga<strong>in</strong>stFelix Rohatyn: the evidence <strong>of</strong> his central role <strong>in</strong> the takedown <strong>of</strong>U.S. <strong>in</strong>dustry.come upon the name, “Banque Lazard” and a specific<strong>in</strong>dividual, “André Meyer.”<strong>The</strong>re was an extensive network <strong>of</strong> cooperation thatexisted dur<strong>in</strong>g the 1940s, between American <strong>in</strong>telligence<strong>of</strong>ficers from all <strong>of</strong> the major agencies: You had theOffice <strong>of</strong> Strategic Services, you had the various military<strong>in</strong>telligence branches, the State Department had a veryactive <strong>in</strong>telligence service. And <strong>in</strong> most cases, there wereclose contacts established with various Resistance networks,<strong>in</strong>clud<strong>in</strong>g especially military Resistance networksthat existed, <strong>in</strong>clud<strong>in</strong>g with<strong>in</strong> the Vichy governmentitself. And so, a number <strong>of</strong> U.S. reports actually reflectjo<strong>in</strong>t efforts by American military and <strong>in</strong>telligence <strong>of</strong>ficerswork<strong>in</strong>g with French counterparts, who were work<strong>in</strong>gat great risk. Because, they were obviously work<strong>in</strong>g,aga<strong>in</strong>st, ostensibly, their own government.Now, one <strong>of</strong> the reports that surfaced after the war,was a detailed study prepared by a French <strong>in</strong>telligence<strong>of</strong>ficial further elaborat<strong>in</strong>g on the role <strong>of</strong> André Meyerwith<strong>in</strong> this overall <strong>Synarchist</strong> apparatus. I’ll just, aga<strong>in</strong>,read a few quotes:19


“When Von Ribbentrop came to Paris on Dec. 6, 1938to sign a ‘good neighbor pact’ with Georges Bonnet,there was a d<strong>in</strong>ner at the Quai d’Orsay that even<strong>in</strong>gattended by Daniel Serruys <strong>of</strong> Lazard Bank. At that timeMr. André Meyer, new associate manager <strong>of</strong> LazardFrères, had excellent relations with Georges Bonnet,M<strong>in</strong>ister <strong>of</strong> Foreign Affairs <strong>of</strong> the Daladier government,and is said to have supported him at the time <strong>of</strong>Munich.“<strong>The</strong> Lazard managers did not want to burn all theirbridges with Germany because they still had friends <strong>in</strong>the German world <strong>of</strong> f<strong>in</strong>ance. Furthermore, the Lazardhouse <strong>in</strong> France was the <strong>of</strong>ficial bank <strong>of</strong> Royal Dutch, aDutch company with British capital. Furthermore, thepresident <strong>of</strong> Royal Dutch, Sir Henri Deterd<strong>in</strong>g, afterhav<strong>in</strong>g served England for a long time, had shown a certa<strong>in</strong>sympathy for Hitler’s Germany, and provided fundsto the National Socialist Party without break<strong>in</strong>g with thebus<strong>in</strong>ess world <strong>of</strong> the City <strong>of</strong> London. At the time <strong>of</strong>Munich, Deterd<strong>in</strong>g contributed to ‘expedit<strong>in</strong>g’ Mr.Chamberla<strong>in</strong> before Hitler <strong>in</strong> Godesberg <strong>in</strong> September1938. Because <strong>of</strong> the position <strong>of</strong> Deterd<strong>in</strong>g, the directors<strong>of</strong> Lazard and especially André Meyer, had to adopt anattitude <strong>of</strong> expectation vis-à-vis Hitler, regardless <strong>of</strong> hisanti-Semitism. It appears that they approved <strong>of</strong>Munich.”Now, many years later, towards the end <strong>of</strong> his life,André Meyer, who, for many years afterward, cont<strong>in</strong>uedto be the manag<strong>in</strong>g director <strong>of</strong> Lazard bank, <strong>in</strong> 1940, leftFrance and conveniently took up residence <strong>in</strong> New York,where Lazard also had a major bank<strong>in</strong>g operation. But,<strong>in</strong> an <strong>in</strong>terview with the New York Times—I don’t havethe exact date <strong>of</strong> it, but shortly before he died—AndréMeyer was asked to characterize Felix Rohatyn.Rohatyn had been Meyer’s protégé and had actually succeededhim as the manag<strong>in</strong>g director <strong>of</strong> LazardBrothers. And Meyer, the lead<strong>in</strong>g wartime <strong>Synarchist</strong> <strong>in</strong>France, described Rohatyn <strong>in</strong> the follow<strong>in</strong>g terms: Hesaid, “In some respects, I consider him as my son.”<strong>Synarchist</strong> Penetration <strong>of</strong> theDemocratic PartyNow, I started out by go<strong>in</strong>g through this particularelement, <strong>of</strong> this <strong>Synarchist</strong> dossier taken from wartimeU.S. military archives, because I know that for manypeople here <strong>in</strong> Europe, there’s been an enormousamount <strong>of</strong> confusion and anxiety over what’s been go<strong>in</strong>gon <strong>in</strong> the <strong>United</strong> <strong>States</strong>, particularly <strong>in</strong>side theDemocratic Party, s<strong>in</strong>ce particularly the beg<strong>in</strong>n<strong>in</strong>g <strong>of</strong>this year. And there’s no way to really understand thatphenomenon, without understand<strong>in</strong>g the role <strong>of</strong> FelixRohatyn, <strong>in</strong> that process <strong>of</strong> disruption <strong>of</strong> the DemocraticParty. And there’s no way to understand the motivesbeh<strong>in</strong>d Rohatyn’s activities, other than by understand<strong>in</strong>gthat he is the protégé <strong>of</strong> one <strong>of</strong> the lead<strong>in</strong>g figures <strong>in</strong>the Synarchy dur<strong>in</strong>g the wartime period. And that, whileRohatyn is ostensibly a major figure <strong>in</strong> the DemocraticParty and one <strong>of</strong> the major sources <strong>of</strong> Wall Street fund<strong>in</strong>gto Democratic candidates, whether for President orfor other high <strong>of</strong>fice, there is absolutely no dist<strong>in</strong>ctionbetween Rohatyn’s outlook, André Meyer’s outlook, andthe outlook <strong>of</strong> the people that Cliff Kirac<strong>of</strong>e justdescribed as be<strong>in</strong>g beh<strong>in</strong>d the fascist coup attemptsaga<strong>in</strong>st Frankl<strong>in</strong> Roosevelt <strong>in</strong> the 1930s.So what you’ve got, <strong>in</strong>side the Democratic Party <strong>in</strong>the <strong>United</strong> <strong>States</strong>, is a degree <strong>of</strong> penetration by the same<strong>Synarchist</strong> apparatus, that, while be<strong>in</strong>g actively <strong>in</strong>volvedas the lead<strong>in</strong>g Nazi collaborators <strong>in</strong> France, were alsobusily <strong>in</strong>filtrat<strong>in</strong>g and establish<strong>in</strong>g their presence <strong>in</strong>sidethe lead<strong>in</strong>g anti-fascist movement <strong>in</strong> France, the FreeFrench movement <strong>of</strong> General de Gaulle. <strong>The</strong>y weredo<strong>in</strong>g all <strong>of</strong> these th<strong>in</strong>gs, and at the time, U.S. <strong>in</strong>telligencehad a spotlight on both, and there was not confusionabout what this apparatus <strong>in</strong>tended to do, who theywere, and what the methods were that they used <strong>in</strong>order to penetrate every <strong>in</strong>stitution that was mov<strong>in</strong>g, <strong>in</strong>order to subvert them all, <strong>in</strong> the <strong>in</strong>terests <strong>of</strong> a particular<strong>in</strong>ternational f<strong>in</strong>ancial oligarchy.Now, it’s <strong>in</strong>terest<strong>in</strong>g that this pr<strong>of</strong>ile <strong>of</strong> André Meyerand Lazard, ostensibly a French <strong>in</strong>stitution, talked aboutthe fact that Lazard was <strong>in</strong> the middle <strong>of</strong> the Anglo-Dutch oligarchy’s operations <strong>of</strong> the 1920s, ’30s, and ’40s.In fact, the Lazard bank <strong>in</strong> Paris was the lead<strong>in</strong>g bank<strong>in</strong>grepresentative <strong>of</strong> Royal Dutch Shell. And <strong>in</strong> thatcapacity <strong>in</strong> the late 1920s, lead<strong>in</strong>g figures from theLazard bank helped to establish another f<strong>in</strong>ancial <strong>in</strong>stitution,a very closely allied f<strong>in</strong>ancial <strong>in</strong>stitution, calledthe Banque Worms.Now, prior to the found<strong>in</strong>g <strong>of</strong> the Banque Worms <strong>in</strong>the 1920s, the Worms group was primarily <strong>in</strong>volved <strong>in</strong><strong>in</strong>dustry, and especially <strong>in</strong>volved <strong>in</strong> shipp<strong>in</strong>g. <strong>The</strong> shipp<strong>in</strong>gcompany <strong>of</strong> Hippolyte Worms handled much <strong>of</strong> theoil shipments for Royal Dutch Shell, so that you had avery tightly knit network <strong>of</strong> <strong>Synarchist</strong>s, ultimatelyreport<strong>in</strong>g to this Anglo-Dutch f<strong>in</strong>ancial oligarchy, butwork<strong>in</strong>g through both Lazard and Banque Worms.Now, the decision by the Roosevelt government, toma<strong>in</strong>ta<strong>in</strong> diplomatic relations with Vichy France,despite the known close ties to many people <strong>in</strong> the Vichygovernment with the Hitler regime <strong>in</strong> Germany, was avery complicated affair. <strong>The</strong> decision was based on theknowledge that there were extensive Resistance networks<strong>in</strong> France; it was based on the fact that there wasa desire to have a certa<strong>in</strong> close <strong>in</strong>telligence access, to thesituation on the ground with<strong>in</strong> cont<strong>in</strong>ental Europe.And <strong>in</strong> order to make this decision <strong>in</strong>telligible to theAmerican people and to the world at large, <strong>in</strong> 1943,President Roosevelt commissioned a man namedWilliam Langer, an American historian who at that timewas head <strong>of</strong> the Research and Analysis branch <strong>of</strong> theOSS, to prepare a study. He was given access to all <strong>of</strong>the American government files on Vichy France, on theSynarchy, and <strong>in</strong> 1947, he came out with a book calledOur Vichy Gamble. And <strong>in</strong> the book, he laid out, I th<strong>in</strong>kvery effectively, both the complexities <strong>of</strong> what the U.S.was try<strong>in</strong>g to do, and a very detailed roadmap <strong>of</strong> all <strong>of</strong>20


the different elements <strong>in</strong>side Vichy France. And he wasvery much attuned to the Synarchy problem, and to theparticular role <strong>of</strong> the Banque Worms group be<strong>in</strong>g at theheart <strong>of</strong> most <strong>of</strong> the pro-Hitler apparatus <strong>in</strong>side theVichy government.I’ll just read you briefly from a couple <strong>of</strong> pages, wherehe discusses this. He’s referr<strong>in</strong>g to Admiral Darlan, whowas one <strong>of</strong> the top <strong>of</strong>ficials <strong>in</strong> Vichy France. He said:“Darlan’s henchmen were not conf<strong>in</strong>ed to the fleet. Hispolicy <strong>of</strong> collaboration with Germany could count onmore than enough eager supporters among French<strong>in</strong>dustrial and bank<strong>in</strong>g <strong>in</strong>terests—<strong>in</strong> short, among thosewho even before the war had turned to Nazi Germanyand had looked to Hitler as the savior <strong>of</strong> Europe fromCommunism. . . . <strong>The</strong>se people were as good fascists asany <strong>in</strong> Europe. <strong>The</strong>y dreaded the Popular Front like theplague and were conv<strong>in</strong>ced that they could prosper evenunder Hitler’s iron rod. Many <strong>of</strong> them had long hadextensive and <strong>in</strong>timate bus<strong>in</strong>ess relations with German<strong>in</strong>terests and were still dream<strong>in</strong>g <strong>of</strong> a new system <strong>of</strong>‘synarchy,’ which meant government <strong>of</strong> Europe on fascistpr<strong>in</strong>ciples by an <strong>in</strong>ternational brotherhood <strong>of</strong>f<strong>in</strong>anciers and <strong>in</strong>dustrialists.”<strong>The</strong>n he quotes from a memo, dated Jan. 7, 1942,that was sent by U.S. Ambassador Biddle from London,aga<strong>in</strong>, describ<strong>in</strong>g the <strong>Synarchist</strong>s: “This group should beregarded not as Frenchmen, any more than their correspond<strong>in</strong>gmembers <strong>in</strong> Germany should be regarded asGermans, for the <strong>in</strong>terests <strong>of</strong> both groups are so <strong>in</strong>term<strong>in</strong>gledas to be <strong>in</strong>dist<strong>in</strong>guishable; their whole <strong>in</strong>terestis focused upon furtherance <strong>of</strong> their <strong>in</strong>dustrial andf<strong>in</strong>ancial stakes.”And then, go<strong>in</strong>g back to his own account, Langerspends several pages, literally giv<strong>in</strong>g name, rank, andserial number <strong>of</strong> all <strong>of</strong> the top <strong>of</strong>ficials <strong>of</strong> BanqueWorms who were brought <strong>in</strong>to the Vichy government.And then, at the end he says, “From this list it appears atonce that practically every m<strong>in</strong>istry or secretaryshiptouch<strong>in</strong>g economic affairs was <strong>in</strong> the hands <strong>of</strong> one oranother <strong>of</strong> the Worms clique.” And he goes on fromthere.So, this apparatus was very well known, and <strong>in</strong> fact,at the end <strong>of</strong> the war, with the liberation <strong>of</strong> France <strong>in</strong>1944, almost all <strong>of</strong> the lead<strong>in</strong>g figures <strong>in</strong> Banque Wormswere arrested. A number <strong>of</strong> them were sentenced to longjail terms. But as Lyn[don <strong>LaRouche</strong>] has discussedrepeatedly, the world changed overnight, drastically forthe worse, <strong>in</strong> mid-April 1945, when Frankl<strong>in</strong> Rooseveltdied. And with the death <strong>of</strong> Roosevelt and the accession<strong>of</strong> Harry Truman <strong>in</strong>to power <strong>in</strong> the <strong>United</strong> <strong>States</strong>, theentire <strong>Synarchist</strong> apparatus got a second life.By 1948, all <strong>of</strong> the lead<strong>in</strong>g <strong>Synarchist</strong>s had been freedfrom jail <strong>in</strong> France, and not only let go, but the entireapparatus was <strong>in</strong> the process <strong>of</strong> be<strong>in</strong>g reconstructedunder a renovated Anglo-American ownership. And, forexample, the Banque Worms began hir<strong>in</strong>g back a number<strong>of</strong> people who had been among the most visible pro-Nazis <strong>in</strong>side the Vichy government. A man namedGeorges Albert<strong>in</strong>i, who had been a top <strong>of</strong>ficial <strong>of</strong> theLabor M<strong>in</strong>istry under Vichy, was released from jail afterfour years <strong>of</strong> hard labor, and was hired immediately totake charge <strong>of</strong> what was called the “Labor Department”at Banque Worms. This was simply a fund<strong>in</strong>g mechanismthat was set up, so that Banque Worms <strong>in</strong> Franceafter the war became one <strong>of</strong> the major sources <strong>of</strong> fund<strong>in</strong>gfor people otherwise known as to be part <strong>of</strong> theCongress for Cultural Freedom. And Albert<strong>in</strong>i, for example,set up an Institute for Historical Studies, whichbecame a major, Banque Worms-funded, Congress forCultural Freedom propaganda outlet, produc<strong>in</strong>g all sorts<strong>of</strong> anti-Communist tracts, to create the proper scare climate,<strong>in</strong> the period <strong>of</strong> Trumanism and the emergence <strong>of</strong>the Cold War, after Roosevelt’s death.<strong>The</strong> Case <strong>of</strong> Felix RohatynNow, the case <strong>of</strong> Felix Rohatyn: As I said, s<strong>in</strong>ce thebeg<strong>in</strong>n<strong>in</strong>g <strong>of</strong> this year, approximately February <strong>of</strong> 2006,we saw a very rapid and precipitous deterioration <strong>in</strong> theperformance <strong>of</strong> the Democratic Party, particularly <strong>in</strong> theSenate. It began with the fight to prevent the nom<strong>in</strong>ation<strong>of</strong> Samuel Alito to the U.S. Supreme Court—and itwent downhill from there. People remember that,throughout 2005, the Democratic Party, particularly <strong>in</strong>the Senate, follow<strong>in</strong>g the November 2004 election, hadresponded forcefully: had defeated the BushAdm<strong>in</strong>istration <strong>in</strong> its drive to privatize Social Security,and had taken a number <strong>of</strong> other steps that were generallyspeak<strong>in</strong>g <strong>in</strong> a healthy direction, that reflected thegrow<strong>in</strong>g <strong>in</strong>fluence <strong>of</strong> Lyn and our movement with<strong>in</strong> theDemocratic Party.But there was one, glar<strong>in</strong>g exception to that, whichwe now understand fully, and are <strong>in</strong> the process <strong>of</strong> tak<strong>in</strong>gcare <strong>of</strong>, as a problem: People remember that <strong>in</strong>February <strong>of</strong> 2005, towards the end <strong>of</strong> the month, an articleappeared here <strong>in</strong> Germany, <strong>in</strong> the FrankfurterAllgeme<strong>in</strong>e Zeitung, which reported on the fact that theGeneral Motors Corp. was fac<strong>in</strong>g <strong>in</strong> the range <strong>of</strong> $60 billion<strong>in</strong> payouts <strong>in</strong> bonds that were go<strong>in</strong>g to be com<strong>in</strong>gdue dur<strong>in</strong>g the year 2005. And because <strong>of</strong> the deteriorat<strong>in</strong>gsituation with<strong>in</strong> the company—General Motors usedto have about a 50% share <strong>of</strong> all automobile sales <strong>in</strong> the<strong>United</strong> <strong>States</strong>; that steadily collapsed down to about25%. It was clear, and the FAZ even made the po<strong>in</strong>t, thatthere would be very high-risk premiums for roll<strong>in</strong>g overthose General Motors bonds. In other words, they wouldhave to be pay<strong>in</strong>g a much higher yield on those bonds,because people had less faith that the company wasgo<strong>in</strong>g to survive.As soon as Lyn saw that article, he put out a series <strong>of</strong>warn<strong>in</strong>gs about the imm<strong>in</strong>ent danger <strong>of</strong> the bankruptcy<strong>of</strong> General Motors, and with it, the collapse <strong>of</strong> the entireautomobile sector <strong>of</strong> the U.S. economy: Which weunderstood very well, Lyn understood perfectly well,was at the heart <strong>of</strong> the mach<strong>in</strong>e-tool design and productioncapacity, which is key to the <strong>in</strong>dustrial economy <strong>of</strong>the <strong>United</strong> <strong>States</strong>. In May <strong>of</strong> 2005, Lyn had written two21


memos, one <strong>of</strong> which was one the question <strong>of</strong> “StrategicBankruptcy,” and he laid out a very clear perspective <strong>of</strong>exactly what k<strong>in</strong>d <strong>of</strong> action Congress had to take, <strong>in</strong>order to assure that the U.S. did not lose this vitalmach<strong>in</strong>e-tool capacity. Congress was <strong>in</strong>active.Democrats, whom we met with frequently, wouldacknowledge the problem, would occasionally even goout and give speeches pay<strong>in</strong>g lip service to the need torebuild the country’s <strong>in</strong>frastructure and the importance<strong>of</strong> sav<strong>in</strong>g the automobile plants. Hillary Cl<strong>in</strong>ton, at onepo<strong>in</strong>t, wrote a letter to George Bush, suggest<strong>in</strong>g that thePresident convene a national emergency summit to savethe auto sector. Beyond publiciz<strong>in</strong>g the fact that shesent out that letter, she really did noth<strong>in</strong>g else; and knewperfectly well that she would not even receive a postcard<strong>in</strong> the mail from the White House acknowledg<strong>in</strong>g thatthey had even received the letter.And here we are, a year later, and we see exactly howright Lyn was about the total destruction <strong>of</strong> the auto sector.<strong>The</strong> Smok<strong>in</strong>g GunNow, about a month ago, the newly <strong>in</strong>stalled managementat Delphi—what was formerly the automobilepartsdepartment <strong>of</strong> General Motors—had admitted <strong>in</strong>Bankruptcy Court that they <strong>in</strong>tended to shut down theentirety <strong>of</strong> their auto-parts production <strong>in</strong> the <strong>United</strong><strong>States</strong>, that they would leave a token force <strong>of</strong> about6,000 production workers <strong>in</strong> the U.S., but would haveabout 140,000 production workers scattered overseas—Ch<strong>in</strong>a, other parts <strong>of</strong> Asia—and that they would keep9,000 white-collar jobs, corporate headquarters jobs, <strong>in</strong>the U.S.; and that was it.We also found out that Delphi was actually auction<strong>in</strong>g<strong>of</strong>f entire plants! Sell<strong>in</strong>g <strong>of</strong>f <strong>in</strong>dispensable mach<strong>in</strong>etoolcapacities for pennies on the dollar. And we alsoknew that, s<strong>in</strong>ce the company had filed for bankruptcyprotection <strong>of</strong> the courts, that this would be a completelyillegal act on their part, unless they had gotten approvalfrom the Bankruptcy Court to dispose <strong>of</strong> their physicalassets <strong>in</strong> the <strong>United</strong> <strong>States</strong>. And we thought that it wasabsolutely <strong>in</strong>conceivable that any bankruptcy judge whowas not literally bought-and-paid-for would be allow<strong>in</strong>g,literally, Internet, eBay-type auctions <strong>of</strong> the entire plants<strong>of</strong> Delphi!And we went to the Bankruptcy Court files—and wefound a lot more than we barga<strong>in</strong>ed for: We not onlyfound out that, <strong>in</strong>deed, the Bankruptcy Court judge had,<strong>in</strong> fact, authorized the sell-<strong>of</strong>f at auction prices <strong>of</strong> two <strong>of</strong>the Delphi plants, with the idea that many more wouldfollow after that; but the judge had basically said thatthese are considered to be “dim<strong>in</strong>ished assets,” because,<strong>in</strong> the corporate restructur<strong>in</strong>g plan, Delphi said they’rego<strong>in</strong>g to stop produc<strong>in</strong>g anyth<strong>in</strong>g <strong>in</strong> the <strong>United</strong> <strong>States</strong>!So, these are go<strong>in</strong>g to be empty plants. <strong>The</strong>y’re go<strong>in</strong>gto go completely underutilized. Why not sell them <strong>of</strong>f,even if you only get pennies on the dollar?Well, as we plunged deeper <strong>in</strong>to the BankruptcyCourt files, literally go<strong>in</strong>g through thousands <strong>of</strong> pages <strong>of</strong>some <strong>of</strong> the most bor<strong>in</strong>g material you could imag<strong>in</strong>e, wecame upon someth<strong>in</strong>g that really has transformed thepolitical situation <strong>in</strong>side the U.S. We found the documentsthat showed that the entire scheme to outsourceand globalize Delphi, and to do it under abuse <strong>of</strong> theU.S. bankruptcy laws <strong>in</strong> order to basically abandon theobligations to make pension and health-care paymentsto all <strong>of</strong> the Delphi workers—the whole deal had beenstructured by a company called Rohatyn Associates! <strong>The</strong>small consult<strong>in</strong>g firm/brokerage house <strong>of</strong> Felix Rohatyn.And that the other companies that had been <strong>in</strong>volved <strong>in</strong>this, were Rothschild, Inc., which is the majorRothschild bank<strong>in</strong>g operation <strong>in</strong> the U.S.; JPMorganChase, the bank that Cliff spoke about a little earlier thisafternoon as be<strong>in</strong>g beh<strong>in</strong>d the fascist coup plot aga<strong>in</strong>stFrankl<strong>in</strong> Roosevelt; and a law firm named Kirkland &Ellis.So, here we have the smok<strong>in</strong>g gun. We literally havethe document with Felix Rohatyn’s signature on it, <strong>in</strong>dicat<strong>in</strong>gthat he was the architect <strong>of</strong> the dismantl<strong>in</strong>g andoutsourc<strong>in</strong>g <strong>of</strong> Delphi. And <strong>of</strong> the takedown, <strong>in</strong> fact, <strong>of</strong>the entire auto <strong>in</strong>dustry: <strong>The</strong>re’s a guy named SteveMiller, who was <strong>in</strong>stalled by Rohatyn and company, asthe CEO <strong>of</strong> Delphi—and he already had a reputation forhav<strong>in</strong>g destroyed the entirety <strong>of</strong> what was left <strong>of</strong> thesteel <strong>in</strong>dustry <strong>in</strong> the <strong>United</strong> <strong>States</strong>, through the exactsame methods.Fundamental Change <strong>in</strong> theBankruptcy LawAll right. So now, we began peel<strong>in</strong>g away further layers<strong>of</strong> the story. We had a staff meet<strong>in</strong>g about a weekand a half ago, back <strong>in</strong> Leesburg, and we pulled togethervarious people who’ve been work<strong>in</strong>g on this whole de<strong>in</strong>dustrializationcrisis <strong>in</strong> the <strong>United</strong> <strong>States</strong>, from ourEconomics sector and from other sectors <strong>of</strong> Intelligence.And we had, for example, one person who had beenclosely follow<strong>in</strong>g the situation <strong>in</strong> the steel <strong>in</strong>dustry;another person who had been track<strong>in</strong>g the takedown <strong>of</strong>the airl<strong>in</strong>es <strong>in</strong>dustry; another person who began look<strong>in</strong>g<strong>in</strong>to the overall changes <strong>in</strong> U.S. bankruptcy law. And itturns out, that back dur<strong>in</strong>g the 1970s, <strong>in</strong> particular dur<strong>in</strong>gthe Carter Adm<strong>in</strong>istration—the Brzez<strong>in</strong>ski/TrilateralCommission Carter Adm<strong>in</strong>istration—that there hadbeen a fundamental change <strong>in</strong> the bankruptcy law, thatsaid, basically: If you’re the banks and brokerage housesthat come <strong>in</strong> to f<strong>in</strong>ance a bankruptcy restructur<strong>in</strong>g <strong>of</strong> acompany, then you get to def<strong>in</strong>e the reorganizationplan!This was a major violation <strong>of</strong> what had been a bankruptcylaw <strong>in</strong> the <strong>United</strong> <strong>States</strong>, that was consistent withthe General Welfare notion. Previously, you had bankruptcyjudges appo<strong>in</strong>t<strong>in</strong>g trustees, whose job it was toprotect the <strong>in</strong>terest <strong>of</strong> the workers <strong>of</strong> the company, andto br<strong>in</strong>g <strong>in</strong> new management to correct the policy mistakesthat had been made by the previous managers thatled them <strong>in</strong>to the situation where they had to file forcourt protection. And companies were allowed to write22


<strong>of</strong>f certa<strong>in</strong> debts, <strong>in</strong> order to allow them to keep theirdoors open, and under new management and underrestructur<strong>in</strong>g, to protect whatever that bus<strong>in</strong>ess was, tokeep the people work<strong>in</strong>g <strong>in</strong> those firms, ga<strong>in</strong>fullyemployed.<strong>The</strong> new law was a 180-degree reversal <strong>of</strong> that. Andfrom 1978 on, beg<strong>in</strong>n<strong>in</strong>g with the airl<strong>in</strong>e <strong>in</strong>dustry, thenextend<strong>in</strong>g <strong>in</strong>to the steel <strong>in</strong>dustry, then <strong>in</strong>to the aerospacesector, and now, f<strong>in</strong>ally, the auto sector, we’ve had a pattern<strong>of</strong> the exact same crim<strong>in</strong>als, always <strong>in</strong>volv<strong>in</strong>g eitherLazard Brothers, or Felix Rohatyn personally; always<strong>in</strong>volv<strong>in</strong>g JP Morgan, always <strong>in</strong>volv<strong>in</strong>g one <strong>of</strong> three orfour major law firms; and usually the RothschildAmerican branch was also somehow or other <strong>in</strong>volved<strong>in</strong> there, as well, <strong>in</strong> sett<strong>in</strong>g up these restructur<strong>in</strong>gs.<strong>The</strong> consequence is, just to give a few examples:<strong>The</strong> aerospace sector, which was at once both theheart <strong>of</strong> the space program, research <strong>in</strong> advanced aviation,a big component <strong>of</strong> our military sector, as well asthe commercial airl<strong>in</strong>es: Over the last 20 years, the aerospacesector went from hav<strong>in</strong>g 900,000 production-l<strong>in</strong>eworkers, to now hav<strong>in</strong>g 550,000, a collapse <strong>of</strong> about40%; and 60 million square feet <strong>of</strong> production space andmach<strong>in</strong>e-tool capacity have been literally shut down andsold <strong>of</strong>f.Steel sector: Fifty percent <strong>of</strong> the labor force laid <strong>of</strong>f,factories not only shut down, but literally blown up, dismantled,so that they no longer even exist to be retooledand reopened. Steel production <strong>in</strong> the U.S. <strong>in</strong> 1975 was145 million tons; last year, it was 95 million, aga<strong>in</strong>, adrop <strong>of</strong> about 35% or so.Auto: S<strong>in</strong>ce 2000—just <strong>in</strong> the last five and a halfyears—there have been 240,000 job losses, net job losses,<strong>in</strong> the U.S. auto sector. This is net losses, so it’s notGM workers go<strong>in</strong>g to work for Toyota or Nissan, or one<strong>of</strong> the Japanese companies that’s built some plants <strong>in</strong>the U.S. And by 2008, the number <strong>of</strong> auto jobs projectedto be lost <strong>in</strong> the U.S., on top <strong>of</strong> the 240,000 lost <strong>in</strong> thelast five and a half years, is an additional 300,000.So: What does Felix Rohatyn represent? Is he aDemocrat? Does he have anyth<strong>in</strong>g to do with theDemocratic Party <strong>of</strong> Frankl<strong>in</strong> Roosevelt? Or is he morealigned with the <strong>Synarchist</strong> coup-plotters, who tried toassass<strong>in</strong>ate and/or coup Roosevelt <strong>in</strong> the ’30s? I th<strong>in</strong>kthe answer’s pretty obvious.<strong>The</strong> Shultz/Rohatyn CollaborationIn fact, if you look at the career <strong>of</strong> Felix Rohatyn, particularlyover the last 30 or so years, you’ll f<strong>in</strong>d that theperson he most persistently shows up <strong>in</strong> collaborationwith, is George Shultz! <strong>The</strong> man who put together thecurrent abom<strong>in</strong>ation called the Bush-CheneyPresidency. <strong>The</strong> Shultz-Rohatyn collaboration, <strong>in</strong> fact,goes back to what was the major topic <strong>of</strong> discussion thismorn<strong>in</strong>g, dur<strong>in</strong>g the keynote panel, namely, the takedown<strong>of</strong> the Bretton Woods system: It was Shultz, act<strong>in</strong>gon behalf <strong>of</strong> the Anglo-Dutch f<strong>in</strong>ancial <strong>in</strong>terests, whowas the <strong>in</strong>dividual who went to the Treasury Secretaryunder Richard Nixon, a man named John Connally,accompanied by Henry Kiss<strong>in</strong>ger and Paul Volcker, andannounced that the Bretton Woods system was over,and that the U.S. would discont<strong>in</strong>ue the currencypegged to the monetized value <strong>of</strong> gold; created the open<strong>in</strong>gfor exactly the speculative system that’s followedfrom that.<strong>The</strong> pilot projects that were designated, both <strong>in</strong> the<strong>United</strong> <strong>States</strong> and <strong>in</strong>ternationally, to demonstrate thatthe world was turn<strong>in</strong>g back towards <strong>Synarchist</strong> economicsand <strong>Synarchist</strong>/fascist politics, were the project thatFelix Rohatyn personally ran <strong>in</strong> New York City, underwhat was called the Municipal Assistance Corp., BigMAC, and the coup d’état <strong>in</strong> 1973 <strong>in</strong> Chile aga<strong>in</strong>stSalvador Allende, which brought the fascist dictatorship<strong>of</strong> P<strong>in</strong>ochet <strong>in</strong>to power.<strong>The</strong> Shultz-Rohatyn team were deeply <strong>in</strong>volvedtogether, <strong>in</strong> the Chile coup. Shultz was a lead<strong>in</strong>g figure<strong>in</strong> the Nixon Adm<strong>in</strong>istration; by that time he hadbecome the Treasury Secretary, replac<strong>in</strong>g Connally. AndFelix Rohatyn was the lead<strong>in</strong>g outside director <strong>of</strong> ITT,the International Telephone & Telegraph Co., whichbankrolled and put together the key elements <strong>of</strong> thecoup. And <strong>of</strong> course, George Shultz became famous forusher<strong>in</strong>g <strong>in</strong> the Chicago School <strong>of</strong> Economics <strong>in</strong>to Chile.And if you go back and look at the descriptions thatwere provided by people like William Langer andAmbassador Biddle and others, who were closely track<strong>in</strong>gthe Synarchy <strong>in</strong> Europe <strong>in</strong> the 1930s and ’40s, you’llf<strong>in</strong>d that the authoritarian regime <strong>in</strong> Chile, run by asmall group <strong>of</strong> bankers and <strong>in</strong>dustrialists, fit the<strong>Synarchist</strong> model to a “t.”In New York City, Rohatyn presided over the destruction<strong>of</strong> New York. Now, <strong>in</strong> the mid-1970s, New YorkCity still represented one <strong>of</strong> the largest concentrations <strong>of</strong><strong>in</strong>dustrial workers <strong>in</strong> the <strong>United</strong> <strong>States</strong>. People th<strong>in</strong>kabout big Midwest cities like Detroit and Cleveland. Butif you actually toured around New York City, still <strong>in</strong> themid-1970s, although it was already beg<strong>in</strong>n<strong>in</strong>g to slipaway, you would f<strong>in</strong>d <strong>in</strong> some <strong>of</strong> the outer-ly<strong>in</strong>g boroughs,the Bronx, Queens, parts <strong>of</strong> Brooklyn, factoriessurrounded by dozens <strong>of</strong> small mach<strong>in</strong>e shops. This wasthe heart <strong>of</strong> the American Mittelstand. When FelixRohatyn took over as the head <strong>of</strong> the MunicipalAssistance Corp., Big MAC, there were 1.3 million manufactur<strong>in</strong>gjobs <strong>in</strong>side the City <strong>of</strong> New York. By the timehe was f<strong>in</strong>ished, that number was halved.And along with that, some <strong>of</strong> New York City’s municipalunions had been brought <strong>in</strong>to a <strong>Synarchist</strong> pact:<strong>The</strong> AFSCME union, headed up by Victor Gotbaum, putbillions <strong>of</strong> dollars <strong>of</strong> workers’ pension money <strong>in</strong>to BigMAC bonds. A number <strong>of</strong> other unions <strong>of</strong> municipalworkers strongly resisted.Rohatyn oversaw the shutdown <strong>of</strong> hospitals, the shutdown<strong>of</strong> bus l<strong>in</strong>es; subway stations were mothballed andshut, whole parts <strong>of</strong> the city were red-l<strong>in</strong>ed because thebankruptcy reorganization <strong>of</strong> New York City guaranteedthat the bondholders would be paid first, before any-23


th<strong>in</strong>g else. New York City was destroyed, throughvicious austerity presided over by Rohatyn. And hebrought Victor Gotbaum from the labor movementshamelessly <strong>in</strong>, as part <strong>of</strong> the operation.This is a cl<strong>in</strong>ical case <strong>of</strong> what American <strong>in</strong>telligenceanalysts and their French collaborators referred to <strong>in</strong>the 1940s as the “left” side <strong>of</strong> the Synarchy.And that’s the problem <strong>in</strong> the Democratic Partytoday: You have a Democratic Party that had been tilt<strong>in</strong>gback, under Lyn’s leadership, towards the FDR orientation.And at that po<strong>in</strong>t, Rohatyn went absolutelyberserk, and began personally deploy<strong>in</strong>g, cont<strong>in</strong>uously,up to Capitol Hill, to do everyth<strong>in</strong>g <strong>in</strong> his power to disruptthe efforts <strong>of</strong> the Democratic Party to come up witha Rooseveltian-LaRouchian policy-agenda for these midtermelections. Rohatyn, the close friend <strong>of</strong> Shultz, wascommitted to the idea that if the Democratic Party wasgo<strong>in</strong>g to go <strong>in</strong> the direction that Lyn was lead<strong>in</strong>g it, thenit was go<strong>in</strong>g to have to be destroyed from the <strong>in</strong>side.<strong>The</strong> Fight for the Democratic PartyNow, happily, this is not someth<strong>in</strong>g that is necessarilywith<strong>in</strong> Rohatyn’s power to pull <strong>of</strong>f. And <strong>in</strong> fact, while hedoes have a certa<strong>in</strong> k<strong>in</strong>d <strong>of</strong> strength <strong>in</strong>side Wash<strong>in</strong>gton,D.C., the Democratic Party—<strong>in</strong> fact—still rema<strong>in</strong>s thelargest grassroots party <strong>in</strong> the <strong>United</strong> <strong>States</strong>. And I canassure you, that Rohatyn has very few relationships withDemocrats at the county chairmen’s level, or at othergrassroots levels around the <strong>United</strong> <strong>States</strong>—whereas, wedo! When we began putt<strong>in</strong>g out the first pieces <strong>of</strong> theRohatyn dossier back a couple <strong>of</strong> weeks ago—and that iswithout the picture that I presented today, <strong>of</strong> the systematicdestruction <strong>of</strong> the entire <strong>in</strong>dustrial base <strong>of</strong> the<strong>United</strong> <strong>States</strong>, which is now at about a m<strong>in</strong>ute beforemidnight to be<strong>in</strong>g completed—even with the limitedmaterial that we had put together, Rohatyn’s signatureon the documents basically structur<strong>in</strong>g the bankruptcy<strong>of</strong> Delphi, a lot <strong>of</strong> people became very uncomfortable:Because, the biggest flaw <strong>in</strong> the Democratic Party rightnow, is cowardice! <strong>The</strong>re are a lot <strong>of</strong> people who knowbetter, and who were hop<strong>in</strong>g that somehow or other,they could stick their heads <strong>in</strong> the sand, and avoid theshowdown between Lyn and Rohatyn.Well, as <strong>of</strong> today, as <strong>of</strong> probably about an hour ago,the new issue <strong>of</strong> EIR [June 30], with Lyn’s lead editorial,scold<strong>in</strong>g the Democrats <strong>in</strong> the harshest <strong>of</strong> terms, lay<strong>in</strong>gout this entire picture <strong>of</strong> Rohatyn and the Synarchy,both from the historical documents that I referencedand quoted from here, as well as the pr<strong>of</strong>ile <strong>of</strong> what’sgone on under Rohatyn’s supervision <strong>in</strong> the last 30years, is already saturat<strong>in</strong>g Capitol Hill. By the end <strong>of</strong>this week, thousands <strong>of</strong> copies <strong>of</strong> that EIR will have gotten<strong>in</strong>to the hands <strong>of</strong> every member <strong>of</strong> Congress, and <strong>of</strong>state legislators and labor leaders all over the country.And this is go<strong>in</strong>g to create a very difficult predicamentfor Mr. Rohatyn, because he’s go<strong>in</strong>g to have a veryhard time, expla<strong>in</strong><strong>in</strong>g away U.S. government documents,from the National Archive! “This André Meyername, do you know this guy? Listed as a lead<strong>in</strong>g <strong>in</strong>ternational<strong>Synarchist</strong>. By whom? Not by some Europeannetworks, but by the U.S. Army military attaché <strong>in</strong>Algiers. How’re you go<strong>in</strong>g to expla<strong>in</strong> that away?” We’renot go<strong>in</strong>g to let him get away with it: Rohatyn made onemistake, <strong>of</strong> mak<strong>in</strong>g a public appearance <strong>in</strong> Wash<strong>in</strong>gton,several months back. And not only was the LYM[<strong>LaRouche</strong> Youth Movement] there <strong>in</strong> force, but [EIREconomics Editor] Paul Gallagher confronted himdirectly, on the question <strong>of</strong> Lyn’s call for an FDR-styleapproach to put out billions <strong>of</strong> dollars, hundreds <strong>of</strong> billions,trillions <strong>of</strong> dollars, <strong>in</strong> government credits for vitallyneeded <strong>in</strong>frastructure projects and job-creation. AndRohatyn’s comment was, “We’re not go<strong>in</strong>g to do it thatway, this time. That was all that Roosevelt had at hisdisposal. Now we have private banks, we have bondmarkets, we have all <strong>of</strong> these new mechanisms.”And <strong>in</strong> a discussion with some other Democrats <strong>in</strong>which he was a little bit more blunt, when he was at themeet<strong>in</strong>g, back <strong>in</strong> 1998 where President Cl<strong>in</strong>ton talkedabout the need for a new global f<strong>in</strong>ancial architecture,up at the Council on Foreign Relations, <strong>in</strong> that meet<strong>in</strong>g,Rohatyn got up and basically said: Look, back <strong>in</strong> 1944,governments controlled credit. Now, capital is <strong>in</strong> thehands <strong>of</strong> primarily private, and mostly <strong>of</strong>fshore f<strong>in</strong>ancial<strong>in</strong>stitutions—not even central banks. <strong>The</strong>refore,Rohatyn announced on behalf <strong>of</strong> the Synarchy, that thistime around, if there’s go<strong>in</strong>g to be a new, reorganizedglobal f<strong>in</strong>ancial system, then, the <strong>Synarchist</strong> bankers arego<strong>in</strong>g to control it. And it’s not go<strong>in</strong>g to have anyth<strong>in</strong>g todo with government credit.So, he’s even on record himself, putt<strong>in</strong>g himselfsquarely <strong>in</strong> the <strong>Synarchist</strong> camp. And we’re go<strong>in</strong>g to usethe historical record <strong>of</strong> this to f<strong>in</strong>ish him <strong>of</strong>f.I had a discussion with Lyn the other day, aboutsome <strong>of</strong> the developments around Lyn’s own legislativeproposal, which people have seen <strong>in</strong> the “U.S. EconomicRecovery Act <strong>of</strong> 2006,” and we were talk<strong>in</strong>g about whatthe next step was, <strong>in</strong> gett<strong>in</strong>g that legislation <strong>in</strong>troducedand passed through the Congress. And Lyn’s commentwas, “<strong>The</strong> critical first step is gett<strong>in</strong>g out this material,and f<strong>in</strong>ish<strong>in</strong>g <strong>of</strong>f Rohatyn politically.” In other words,you’ve got to flush the poison out <strong>of</strong> the DemocraticParty as the necessary first step, to be<strong>in</strong>g able to get peopleto do what needs to be done. And <strong>in</strong> some cases,there are some people who, freed <strong>of</strong> the terror thatRohatyn represents, will do that.So, that’s where we stand: We’re actually, today, at alaunch<strong>in</strong>g moment, a po<strong>in</strong>t <strong>of</strong> embarkation <strong>of</strong> a campaignwhich I expect very shortly will result <strong>in</strong> the completepolitical destruction <strong>of</strong> Rohatyn, and with that, amajor transformation <strong>in</strong> the political situation <strong>in</strong>side the<strong>United</strong> <strong>States</strong>, and thus, around the world, to put Lyn <strong>in</strong>the driver’s seat <strong>in</strong> the Democratic Party, to move usback <strong>in</strong>to the Roosevelt paradigm, but with a number <strong>of</strong>corrections and advances over even what Rooseveltaccomplished <strong>in</strong> the 1930s.Thank you.24


<strong>The</strong> Key to History:Discover a Pr<strong>in</strong>cipleHere are Lyndon <strong>LaRouche</strong>’s remarks follow<strong>in</strong>g JeffreySte<strong>in</strong>berg’s presentation, <strong>in</strong> the afternoon panel <strong>of</strong> EIR’sBerl<strong>in</strong> Sem<strong>in</strong>ar, June 27.would just add one theme, on this th<strong>in</strong>g. What has toI be emphasized is someth<strong>in</strong>g which I referred to earlier,and I’ll just pick up and put it <strong>in</strong>to focus here, at thistime. Because we have some other <strong>in</strong>terventions that arego<strong>in</strong>g to occur today, and Helga has someth<strong>in</strong>g which isquite relevant to what has just been presented, from astandpo<strong>in</strong>t, not, shall we say, local, but with particularemphasis on the Berl<strong>in</strong> campaign go<strong>in</strong>g on there now.<strong>The</strong> problem with history is what you’re faced withhere. You’re look<strong>in</strong>g at a typical case, <strong>in</strong> which what peopleth<strong>in</strong>k their experience and knowledge is, is one th<strong>in</strong>g,and what they believe happened, is someth<strong>in</strong>g completelydifferent. <strong>The</strong> only way you understand history is bybeg<strong>in</strong>n<strong>in</strong>g to study it, not as a collection <strong>of</strong> facts, because acollection <strong>of</strong> facts is simply sophistry. You present thefacts; everybody glues the facts together with differentcement <strong>in</strong> a different organization, and comes to a differentconclusion. <strong>The</strong> question—to avoid sophistry—is, notwhat are the facts? Because a dog, by sniff<strong>in</strong>g at rear-endsknows what the facts are, but he doesn’t become anyth<strong>in</strong>gmore than a dog by do<strong>in</strong>g so! Human be<strong>in</strong>gs have a similaraccomplishment when they try to imitate a dog.<strong>The</strong> question is pr<strong>in</strong>ciple. You know, the great discovery,as an example <strong>of</strong> pr<strong>in</strong>ciple, the great discovery <strong>in</strong>modern history, modern science, was: You had a case <strong>of</strong>Brahe, Tycho Brahe, who demonstrated the importance<strong>of</strong> collect<strong>in</strong>g facts about astronomy . . . but he came upwith the wrong conclusion, because he didn’t knowwhat the pr<strong>in</strong>ciple was. <strong>The</strong>n, by work<strong>in</strong>g on the work <strong>of</strong>Brahe, and go<strong>in</strong>g further as an astronomer, JohannesKepler, a more ref<strong>in</strong>ed <strong>in</strong>vestigator, reorganized theentire approach, to discover what is the pr<strong>in</strong>ciple thatcaused the phenomenon. Now, idiots th<strong>in</strong>k that what hediscovered was the elliptical character <strong>of</strong> the orbits, andthat’s what the idiots believe. But an ellipse is simply ath<strong>in</strong>g you can draw on a blackboard. You can take it,with a couple <strong>of</strong> p<strong>in</strong>s and str<strong>in</strong>g, and you can draw it.Well, that’s not what moves the planets. <strong>The</strong> ellipticalorbit is a product <strong>of</strong> a pr<strong>in</strong>ciple <strong>of</strong> action. In otherwords, the action is not determ<strong>in</strong>ed by an ellipse, theellipse is a product <strong>of</strong> the pr<strong>in</strong>ciple <strong>of</strong> action. What is thepr<strong>in</strong>ciple <strong>of</strong> action that forms this elliptical orbit, whichis not a regular orbit? <strong>The</strong>re’s no way you could simulateit as a regular orbit with p<strong>in</strong>s and str<strong>in</strong>g. It can not bedone. What is the action <strong>of</strong> pr<strong>in</strong>ciple <strong>in</strong> the universe? Apr<strong>in</strong>ciple as big as the universe, which produces an actually<strong>in</strong>f<strong>in</strong>itesimal rate <strong>of</strong> change at every po<strong>in</strong>t <strong>of</strong> motion<strong>in</strong> the orbit? A pr<strong>in</strong>ciple! A universal pr<strong>in</strong>ciple, thatdef<strong>in</strong>es a universe which is f<strong>in</strong>ite—hmm? A f<strong>in</strong>ite universe!Which is self-bounded, not externally bounded,but self-bounded.That’s the difference. That’s what we mean by a pr<strong>in</strong>ciple.Now, all scientific method, and particularly <strong>in</strong>European history s<strong>in</strong>ce the time <strong>of</strong> the study <strong>of</strong> Sphaericsby the Pythagoreans, and people like Thales and Plato,has always been the same. Discover a pr<strong>in</strong>ciple.<strong>The</strong> Orbit <strong>of</strong> European HistoryNow, we have a history. Let’s look at this orbit <strong>of</strong>European history, and look at the events we’ve just beendiscuss<strong>in</strong>g, <strong>in</strong> the orbit <strong>of</strong> European history. What is thecomplete orbit <strong>of</strong> human history to date? <strong>The</strong> orbit startswith the emergence <strong>of</strong> Classical Greece, under Egyptian<strong>in</strong>fluence, about 700 B.C. Nobody knows anyth<strong>in</strong>g, really,about real history before that time. We know a lot <strong>of</strong>facts; we can determ<strong>in</strong>e from astronomical studies certa<strong>in</strong>other facts. But the pr<strong>in</strong>ciples <strong>of</strong> human behavior,known factually, determ<strong>in</strong>ed as pr<strong>in</strong>ciples factually—weonly beg<strong>in</strong> to understand that about 700 B.C. on, <strong>in</strong> theemergence under Egyptian <strong>in</strong>fluence <strong>of</strong> the Greeks, whowere pretty crude and stupid people then; <strong>in</strong> Ionia and <strong>in</strong>southern Italy, Magna Graecia, <strong>in</strong> Athens.From that time on, what is the motion <strong>of</strong> history, up tothe present time? Well, Greece was destroyed. How was itdestroyed? It was destroyed by the Congress for CulturalFreedom. It was destroyed by the Frankfurt School <strong>of</strong>existentialism—or, its predecessors, called sophistry. Itwas destroyed by the Cult <strong>of</strong> Delphi, the Apollo Cult, asexposed by Aeschylos <strong>in</strong> his Prometheus trilogy. <strong>The</strong>ywent to the people and they did the same th<strong>in</strong>g that wasdone to people <strong>in</strong> Europe and the <strong>United</strong> <strong>States</strong>, today.<strong>The</strong>y went to them and they said, “sophistry.”<strong>The</strong>y started with the little kiddies. And they tried toget rid <strong>of</strong> [Frankl<strong>in</strong>] Roosevelt, by destroy<strong>in</strong>g the m<strong>in</strong>ds<strong>of</strong> the members <strong>of</strong> the generation born between 1945and about 1957, by destroy<strong>in</strong>g their m<strong>in</strong>ds and theirmorals. How? By work<strong>in</strong>g on them, specifically on thelayer, which by economic and social circumstanceswould be go<strong>in</strong>g <strong>in</strong>to universities <strong>in</strong> the 1960s, and wouldbe the 68ers! And the 68ers, after this condition<strong>in</strong>g—thedestruction <strong>of</strong> art, the destruction <strong>of</strong> Classical music, thedestruction <strong>of</strong> science, the destruction <strong>of</strong> morals—wasmanifest by the 68ers, who said: “Get rid <strong>of</strong> the workers!We don’t like blue-collar people! Get rid <strong>of</strong> the farmers.We don’t like science! Get rid <strong>of</strong> nuclear energy. Get rid<strong>of</strong> science! Get rid <strong>of</strong> Classical art.”And others who didn’t agree with that, but becausethey were the same generation, said, “Well, we have to25


espect the op<strong>in</strong>ion <strong>of</strong> our peers.” <strong>The</strong> same th<strong>in</strong>g thathappened <strong>in</strong> Athens, <strong>in</strong> the 50 years preced<strong>in</strong>g thePeloponnesian War!Now, what did we get as a result <strong>of</strong> that? We got theRoman Empire later! <strong>The</strong> Roman Empire contributedabsolutely noth<strong>in</strong>g to European culture—except syphilisand similar k<strong>in</strong>ds <strong>of</strong> th<strong>in</strong>gs. It was succeeded by theByzant<strong>in</strong>e Empire, which was the result <strong>of</strong> an abortion;it was a lousy birth.You had the attempt to establish civilization aga<strong>in</strong>, byvarious forces, repeatedly, repeatedly. European culturedidn’t die. <strong>The</strong> legacy <strong>of</strong> Greece didn’t die. It kept surg<strong>in</strong>gforth as a m<strong>in</strong>ority force, aga<strong>in</strong> and aga<strong>in</strong>, <strong>in</strong> unexpectedplaces <strong>in</strong> history. <strong>The</strong> Christian Church wasalmost destroyed by Constant<strong>in</strong>e, who said, “You couldbecome legalized, if you let me appo<strong>in</strong>t the bishops.” Inother words, he declared himself Pope.So, you had the emergence <strong>of</strong> the August<strong>in</strong>ian movement,as a reaction aga<strong>in</strong>st this corruption underConstant<strong>in</strong>e. And the August<strong>in</strong>ian movement waschased. It went <strong>in</strong>to Spa<strong>in</strong>; Isidore <strong>of</strong> Seville. It went<strong>in</strong>to, where? <strong>of</strong> all places, Ireland. Can you imag<strong>in</strong>e aChristian <strong>in</strong> Ireland? It’s a very difficult th<strong>in</strong>g to conceive<strong>of</strong>. <strong>The</strong>y’re always kill<strong>in</strong>g each other, and beat<strong>in</strong>geach other up all the time—that’s not a good, Christiancivilization. But, from Ionia and so forth, they didanother miraculous th<strong>in</strong>g: <strong>The</strong>y Christianized Saxons!This is a very difficult th<strong>in</strong>g—but they succeeded! Notonly that, but they helped to Christianize—Frenchmen:Now, that’s a miracle! When you see a Frenchman,today, you realize what a miracle that is! You can hardlyf<strong>in</strong>d a Christian <strong>in</strong> the bishops <strong>of</strong> the Christian Church<strong>in</strong> France. <strong>The</strong>y usually are the Napoleonic Church orthe Church <strong>of</strong> Louis XIV, some foolish th<strong>in</strong>g like that.But then, you had this emergence <strong>in</strong> France aroundCharlemagne, through the August<strong>in</strong>ian <strong>in</strong>fluence, <strong>of</strong> thisgreat effort to civilize humanity. And Charlemagnereached out—not only tried to build a system <strong>in</strong> Europe,which rema<strong>in</strong>ed until approximately about the 800s, butreached out to the Baghdad Caliphate, and reached outto br<strong>in</strong>g the Jews <strong>in</strong>to a role <strong>in</strong> both Islamic society and<strong>in</strong> August<strong>in</strong>ian Christian society. And after his death,this was crushed, step by step.We had a new system. What was the new system?Well, whereas Charlemagne had worked with theBaghdad Caliphate, which was the lead<strong>in</strong>g area <strong>of</strong> cultureand science <strong>of</strong> that time, work<strong>in</strong>g with Jews between thetwo, to build an ecumenical peace among Christians,Jews, and Muslims, as a new order <strong>of</strong> peace. Aga<strong>in</strong>, theVenetians came <strong>in</strong>, and took power, took power from theByzant<strong>in</strong>e Empire which had collapsed <strong>of</strong> its own rottenness.And they allied with a bunch <strong>of</strong> Danes and so forth,who were really terrible people! <strong>The</strong>se were people whohad fled Saxony, and hated everybody, and they werebasically thieves. And they went around on ships <strong>of</strong> variousk<strong>in</strong>ds, and went out kill<strong>in</strong>g people, robb<strong>in</strong>g, steal<strong>in</strong>g.And somebody decided to make them an organized-crimeorganization, rather than this <strong>in</strong>dependent crim<strong>in</strong>al organization,and they organized them and they becameknown as the Normans: the Norman chivalry.<strong>The</strong> Norman chivalry was employed by the Venetianwhores, to conduct religious warfare: various Crusades.Every Crusade was a crime aga<strong>in</strong>st humanity! <strong>The</strong>Crusades were the prototype for fascism! <strong>The</strong> prototype forwhat is happen<strong>in</strong>g today. Integralism <strong>in</strong> so-called ChristianChurch and other th<strong>in</strong>gs is a manifestation <strong>of</strong> fascism, thesame bestiality and degeneracy, <strong>in</strong> the name <strong>of</strong> Christianity!If you want to commit a crime, give it the name <strong>of</strong> God.God may not like it, but you do it anyway.So, out <strong>of</strong> this, then we had a collapse <strong>of</strong> this crazycivilization, a collapse based on the ideas <strong>of</strong> bank<strong>in</strong>g andf<strong>in</strong>ance which are popular <strong>in</strong> Europe today. <strong>The</strong> monetaristsystem. And Europe has never freed itself from themonetarist system. <strong>The</strong>re have been some efforts to doso, but never, <strong>in</strong> net effect today, it has never been freed.So then, you get another phase: You get religious warfarecom<strong>in</strong>g out <strong>of</strong> the Renaissance, after the Renaissance.In 1648, that’s defeated, under the <strong>in</strong>fluence <strong>of</strong> Mazar<strong>in</strong>,and with the cont<strong>in</strong>ued effort <strong>of</strong> Jean-Baptiste Colbert.That’s destroyed, by Louis XIV, with his crazy Frondefriends, who get him <strong>in</strong>to quarrels with the Dutch, anddrown France <strong>in</strong> perpetual religious warfare.And this system <strong>of</strong> religious warfare leads <strong>in</strong>to 1763,when the British East India Company, as the Anglo-Dutch Liberal system establishes imperial power, tak<strong>in</strong>gover North America (that is, Canada), and tak<strong>in</strong>g overIndia and other th<strong>in</strong>gs.So, this corruption has never ended, except that the<strong>United</strong> <strong>States</strong> has been created. And what do they do?<strong>The</strong>y try to corrupt that and destroy that.<strong>The</strong> Pr<strong>in</strong>ciple <strong>of</strong> CreativitySo what you’re see<strong>in</strong>g here, is a pr<strong>in</strong>ciple <strong>in</strong>volved, as Isaid earlier this morn<strong>in</strong>g: <strong>The</strong> pr<strong>in</strong>ciple <strong>in</strong>volved, is,mank<strong>in</strong>d is <strong>in</strong>herently good, naturally good. But ifmank<strong>in</strong>d denies the goodness with<strong>in</strong> it, then it becomesbad, becomes evil. And deny<strong>in</strong>g the sacredness <strong>of</strong> mank<strong>in</strong>dand the dist<strong>in</strong>ction <strong>of</strong> mank<strong>in</strong>d from the beast, which isexplicitly creativity, creativity <strong>of</strong> the type that Plato defended—andAristotle tried to destroy, and Euclid tried todestroy; and the Romans tried to destroy! <strong>The</strong> idea <strong>of</strong>keep<strong>in</strong>g a th<strong>in</strong>g where you have an elite, an oligarchy <strong>in</strong>control, like the f<strong>in</strong>ancier-oligarchy; and they use the doctr<strong>in</strong>ethat “people are bad.” <strong>The</strong>y use the doctr<strong>in</strong>e <strong>of</strong> “orig<strong>in</strong>als<strong>in</strong>,” that, “People are bad; therefore they have to havepeople to control them”—called dictators, or k<strong>in</strong>gs, oremperors, especially emperors <strong>of</strong> that type. And that is evil!When the great imperial authority comes on, to try tocontrol people, to prevent people, who are <strong>in</strong>herentlygood at birth, to prevent them from realiz<strong>in</strong>g the humanitywhich is <strong>in</strong> them, and impos<strong>in</strong>g obedience uponthem!—<strong>in</strong>stead <strong>of</strong> a voluntary impulse to do good. Everychild is born with a voluntary impulse to be good. Well, Idon’t know—it probably happens before they’re born.Actually, because we know, when you’re a six-month-oldpreemie, you survive these days, medically. You realize26


that the little th<strong>in</strong>g <strong>in</strong> the womb is hear<strong>in</strong>g all the gossipand yell<strong>in</strong>g and so forth, the parents are mak<strong>in</strong>g aroundthem. And so you have to wonder about what the badbehavior <strong>of</strong> the parents, and the hear<strong>in</strong>g <strong>of</strong> the child sitt<strong>in</strong>g<strong>in</strong> the womb, has on the emotional life <strong>of</strong> the child,even before it’s born! I mean, pretty obviously, a sixmonthpreemie is a fully functional personality, a humanpersonality. It’s been proven. Six-month preemies wholive, all turn out to be just about as good as those whoare born after full term at n<strong>in</strong>e months. That means thatthis little creature <strong>in</strong> there is wise to you guys!So, this creature is good. It’s born good. It is born<strong>in</strong>nocent, and good. And we allow society to corrupt it,and that’s what evil is.And the essential corruption is to create a society <strong>in</strong>which you suppress the creativity, <strong>in</strong> the sense <strong>of</strong> a searchfor truth. And the greatest crime, is to lie, because youwant to keep on good terms with a circle <strong>of</strong> friends. Oryou want to keep on good terms with a lawyer, or, ongood terms with some authority. Or you want to apply fora job; or you want to be accepted <strong>in</strong> a certa<strong>in</strong> circle. Youwant a pr<strong>of</strong>essorship at a certa<strong>in</strong> university. You lie! Youcommit a crime aga<strong>in</strong>st yourself and aga<strong>in</strong>st humanity!You lie! You don’t tell the truth, you say “it’s for a goodcause,” but you’re ly<strong>in</strong>g. And there’s your corruption.And that’s what happens, when you say, “I am go<strong>in</strong>g tobe obedient, I’m go<strong>in</strong>g to submit.” <strong>The</strong>n you decide to besuccessful. You have to be one <strong>of</strong> the beaters, rather thanthe beaten. And when you try to be “successful” <strong>in</strong> thatway, which is called sophistry, you become a bastard—which no honest parent would want to acknowledge.And that’s what the lesson is. That’s where these fascistsand similar th<strong>in</strong>gs come from. Where evil comesfrom: It’s denial <strong>of</strong> the difference between man and abeast. Man has a creative potential which no beast manifests.But I know—and Jonathan [Tennenbaum] hasalso discovered pa<strong>in</strong>fully, from his efforts <strong>in</strong> this direction—Iknow, that what most people th<strong>in</strong>k they knowtoday about science: <strong>The</strong>y know noth<strong>in</strong>g about science.<strong>The</strong>y know how to recite. <strong>The</strong>y know how to perform,like a tra<strong>in</strong>ed seal, but they don’t know what th<strong>in</strong>k<strong>in</strong>g is.<strong>The</strong>y don’t recognize what Kepler recognized: Thatthere are pr<strong>in</strong>ciples <strong>in</strong> the universe, universal pr<strong>in</strong>ciples,which are as extensive as the universe, and that onlymank<strong>in</strong>d is capable <strong>of</strong> know<strong>in</strong>g those pr<strong>in</strong>ciples.And therefore, just <strong>in</strong> the same way, violation <strong>of</strong> thosepr<strong>in</strong>ciples has penalties. <strong>The</strong> history <strong>of</strong> mank<strong>in</strong>d is, as faras we know it, for nearly 3,000 years, is, mank<strong>in</strong>d had apotential but somehow lost it, by corruption. Corruptiontypified by sophistry. Typified by the typical way peoplebehave <strong>in</strong> Germany, as <strong>in</strong> the <strong>United</strong> <strong>States</strong>, today! Yougot a st<strong>in</strong>k<strong>in</strong>g collection <strong>of</strong> sophists! It’s hard to f<strong>in</strong>d anhonest man on any street, or <strong>in</strong> any prec<strong>in</strong>ct <strong>in</strong> the <strong>United</strong><strong>States</strong> or Germany—not to even speak about France!This is the problem. <strong>The</strong> problem is essentially corruption.And the solution is, to do what? Is to affirm goodness.To affirm goodness is to worry about the next generation.It’s not only about our generation. Th<strong>in</strong>k about our grandchildren,and th<strong>in</strong>k about their grandchildren: And liveour lives, now, today, to br<strong>in</strong>g about a future for our grandchildren,and for their grandchildren. And br<strong>in</strong>g about afuture which is based on the discovery <strong>of</strong> pr<strong>in</strong>ciples.For today: What’s the great pr<strong>in</strong>ciple? We need twoth<strong>in</strong>gs, most <strong>of</strong> all, <strong>in</strong> terms <strong>of</strong> science: We must have animmediate explosion—not <strong>of</strong> nuclear bombs, but <strong>of</strong>nuclear power plants. Without that, we’re not go<strong>in</strong>g tobe able to deal with the water problems <strong>of</strong> the planet.We’re not go<strong>in</strong>g to deal with the pollution <strong>of</strong> the planet,none <strong>of</strong> these th<strong>in</strong>gs.If we don’t develop thermonuclear fusion power as ageneral source, with<strong>in</strong> a quarter-century, the raw materialscrisis which we’re fac<strong>in</strong>g as you have a population<strong>of</strong> over 6 billion people, is go<strong>in</strong>g to struggle to f<strong>in</strong>d theuse <strong>of</strong> the natural resources needed to br<strong>in</strong>g their standard<strong>of</strong> liv<strong>in</strong>g, up to what ours is, at the best, <strong>in</strong> Europeand the <strong>United</strong> <strong>States</strong> today! <strong>The</strong>y have a right to that!And we can’t give them that, because the raw materials<strong>of</strong> a high quality, relative to our needs today, are be<strong>in</strong>gused up! <strong>The</strong>y’re f<strong>in</strong>ite resources which exist with<strong>in</strong> theBiosphere. And they’re be<strong>in</strong>g used up.We have to be able to replace these chemicalresources! We can, with thermonuclear fusion technology.We must, therefore, develop that technique, and wemust do it <strong>in</strong> the next quarter-century, because time isrunn<strong>in</strong>g out.If we don’t have a mass use <strong>of</strong> nuclear power today,we won’t have fresh water for people! Dr<strong>in</strong>kable freshwater. We’re runn<strong>in</strong>g out <strong>of</strong> fresh-water resources, we’reus<strong>in</strong>g them up. We can generate it.So, when someone says you’ve got to show respect fora Greenie, you say, “Why?” If they are deny<strong>in</strong>g peoplethe nuclear power development for the human race,deny<strong>in</strong>g the development <strong>of</strong> thermonuclear fusionpower, they’re condemn<strong>in</strong>g people to death. <strong>The</strong>y’re notgood people. <strong>The</strong>y don’t have democratic rights. Peoplehave their liberties.This is the k<strong>in</strong>d <strong>of</strong> issue, the sense that there are pr<strong>in</strong>ciples<strong>in</strong> nature, as they affect the human be<strong>in</strong>g, as theyaffect human society as we know it for the past 3,000years, approximately. <strong>The</strong>re are certa<strong>in</strong> pr<strong>in</strong>ciples <strong>in</strong> history.And what we have to do when we see a phenomenon,like the type just be<strong>in</strong>g described now, this phenomenon<strong>of</strong> fascism, modern fascism and where it comes from—there’s a pr<strong>in</strong>ciple <strong>in</strong>volved here! It’s not a question <strong>of</strong> whois connected to whom, who whispered <strong>in</strong> whose ear. It’s apr<strong>in</strong>ciple runn<strong>in</strong>g through the current <strong>of</strong> history. Andtherefore, we have to do someth<strong>in</strong>g now, which has notbeen done <strong>in</strong> schools or universities for a long time.I know. I was at a university once; a couple times,actually. And the education was essentially <strong>in</strong>competent!Immoral! Degraded! And I hated it. Because it wasimmoral, degraded, and false. And we have to give peoplea correct understand<strong>in</strong>g <strong>of</strong> the processes <strong>of</strong> history,<strong>in</strong> terms <strong>of</strong> pr<strong>in</strong>ciples, extend<strong>in</strong>g back through at least all<strong>of</strong> European civilization, extend<strong>in</strong>g back for at least3,000 years.27


Helga Zepp-<strong>LaRouche</strong>Stop the <strong>Synarchist</strong>Takeover <strong>in</strong> Berl<strong>in</strong>Helga Zepp-<strong>LaRouche</strong> is the chairwoman <strong>of</strong> the CivilRights Movement Solidarity (BüSo) party <strong>in</strong> Germany.Here is her speech to the Berl<strong>in</strong> sem<strong>in</strong>ar; it has beentranslated from German.Iwant to address an observation by our Chancellor,which she made a couple <strong>of</strong> weeks ago, and whichhas created considerable excitement. Specifically,she said that Germany is a readjustment-case. That isjust another way <strong>of</strong> say<strong>in</strong>g that Germany is bankrupt.And therefore a huge torrent <strong>of</strong> voices arose, whichsaid, “No, you cannot say that!” <strong>The</strong> other positionwas then put forward: “Yes, yes, this is a case <strong>of</strong> <strong>in</strong>solvency.”I would prefer to believe, that Mrs. Merkel,who is actually an “Ossie” [from former EastGermany] knows such <strong>in</strong>solvency cases quite well, andthat she has thus asserted what I have said manytimes, namely, that the global f<strong>in</strong>ancial systemtoday is just as bankrupt as East Germany was <strong>in</strong>October/November 1989. And how true that is, hasbeen underscored once aga<strong>in</strong> this morn<strong>in</strong>g <strong>in</strong> the variouspresentations.Now we must naturally ask: Why is Germany a readjustment-case?Why is Germany bankrupt? And so onecannot avoid the issue <strong>of</strong> who were <strong>in</strong> the governments<strong>of</strong> the last years. Who were the lead<strong>in</strong>g bank<strong>in</strong>g houses,the lead<strong>in</strong>g people, who are responsible for the weaknesses<strong>in</strong> the f<strong>in</strong>ancial system? And I want to briefly casta glance at just that.<strong>The</strong> Lazard Frères RoleBut, first <strong>of</strong> all, there is the fact that we are here <strong>in</strong>Berl<strong>in</strong> and are conduct<strong>in</strong>g a Berl<strong>in</strong> election campaign,with the goal <strong>of</strong> re<strong>in</strong>dustrializ<strong>in</strong>g Berl<strong>in</strong> as the first step<strong>in</strong> the re<strong>in</strong>dustrialization <strong>of</strong> Germany. Thus, one comesto certa<strong>in</strong> stumbl<strong>in</strong>g blocks: <strong>The</strong> first is, that there areseveral powers <strong>in</strong> this city, <strong>in</strong>clud<strong>in</strong>g not only themayor, but also the lead<strong>in</strong>g senior partner <strong>of</strong> LazardFrères <strong>in</strong> Germany, former U.S. Ambassador JohnKornblum, who, just as Rohatyn was Ambassador <strong>in</strong>Paris, was the Ambassador <strong>in</strong> Berl<strong>in</strong>. Now, these twopeople are l<strong>in</strong>ked more closely than one might th<strong>in</strong>k atfirst.We have begun to look carefully at Mr. Kornblum,because he had certa<strong>in</strong> def<strong>in</strong>ite ideas for Berl<strong>in</strong>; hehad given an <strong>in</strong>terview, a while ago, to the newsletterBerl<strong>in</strong>-Box, <strong>in</strong> which he proposed that Berl<strong>in</strong> followthe model <strong>of</strong> Boston from the last 30 years. Thatmodel is a k<strong>in</strong>d <strong>of</strong> Boston version <strong>of</strong> New York’s BigMAC, and it then functioned under the idea <strong>of</strong> urbanrenewal. At that time there was a group <strong>of</strong> Bostonbankers called <strong>The</strong> Vault, which <strong>in</strong> German is calledDer Tresor. Yes, that’s what they’re called, those whoproposed to de<strong>in</strong>dustrialize Boston, to revamp theworkers’ areas <strong>of</strong> the city, and <strong>in</strong>stead erect banks,<strong>in</strong>surance companies, media companies, and universities<strong>in</strong> Boston—which they have done, with theresult that many <strong>in</strong>expensive houses for work<strong>in</strong>g peoplehave been demolished, and <strong>in</strong> their place nowstand speculative properties for <strong>of</strong>fices and service<strong>in</strong>dustries.If you look at the development <strong>of</strong> Boston, then youcan establish the fact that the same th<strong>in</strong>g has happenedthere over the last 15 years, as <strong>in</strong> Berl<strong>in</strong>, where we alsohave about half a million unemployed, very poor people.And for them, Mr. Kornblum naturally has no sympathy.In another <strong>in</strong>terview he said: “<strong>The</strong>refore, the peoplewho criticize this development, who criticize globalization,they are the Losers—and we are with the W<strong>in</strong>ners!”A sweetie pie <strong>of</strong> the first order.Another project l<strong>in</strong>ks Rohatyn and Kornblum. <strong>The</strong>ybegan <strong>in</strong> the year 2000 a Mayors’ Initiative, which aimedat creat<strong>in</strong>g a worldwide network <strong>of</strong> mayors—<strong>in</strong>deed,because they are <strong>of</strong> the op<strong>in</strong>ion that <strong>in</strong> the globalizedworld the sovereign nation-state has lost its usefulness,and <strong>in</strong>stead the role <strong>of</strong> the cities is much more impor-28


Helga Zepp-<strong>LaRouche</strong>and Lyndon <strong>LaRouche</strong><strong>in</strong> Berl<strong>in</strong> on June 28.Mrs. <strong>LaRouche</strong> laid outthe importance <strong>of</strong> thefight to re<strong>in</strong>dustrializeGermany’s capital city,after the <strong>Synarchist</strong>takedown that followedreunification.EIRNS/Simon Jensontant, and above all, the close collaboration <strong>of</strong> mayors <strong>in</strong>the cities. Now we certa<strong>in</strong>ly have one such mayor <strong>in</strong>Berl<strong>in</strong>, and also top managers, who could work togetheron the privatization <strong>of</strong> <strong>in</strong>frastructure, the privatization<strong>of</strong> <strong>in</strong>dustry, and then you wouldn’t need government anymore, the state could fall by the wayside, s<strong>in</strong>ce the mayors,the bankers, and the managers have taken care <strong>of</strong>everyth<strong>in</strong>g!We are really only at the beg<strong>in</strong>n<strong>in</strong>g <strong>of</strong> the <strong>in</strong>vestigation—Iwould like my observation to be understood asan <strong>in</strong>spiration for many more people, to cooperate <strong>in</strong>these <strong>in</strong>vestigations, because this has an unbelievabledimension. But let’s take one case <strong>of</strong> what LazardFrères has previously done <strong>in</strong> Berl<strong>in</strong>. <strong>The</strong>y are wellknown for their specialty <strong>in</strong> so-called mergers andacquisitions.Our mayoral candidate Daniel Buchmann, <strong>in</strong> thecourse <strong>of</strong> his election campaign, recently visited strik<strong>in</strong>gworkers from Case and New Holland (CNH), whohave been strik<strong>in</strong>g here <strong>in</strong> Berl<strong>in</strong> already for a week.This firm, <strong>in</strong> the ’90s, had taken over the earlier, traditionalmach<strong>in</strong>e-tool firm Orenste<strong>in</strong> & Koppel, atakeover for which, naturally, Goldman Sachs, CréditSuisse, and Lazard Frères were the advisors. Now thisstory is <strong>in</strong>terest<strong>in</strong>g because <strong>in</strong> the year 2001, the Berl<strong>in</strong>Senate had supported this takeover with about 70 millioneuros annually, with the promise that CNH wouldkeep its production <strong>in</strong> Berl<strong>in</strong>. But then the management<strong>of</strong> CNH decided <strong>in</strong> 2005, that it would now relocateproduction to Italy, at which po<strong>in</strong>t the workers began aweeks-long strike, until they soon accepted a settlement,because, as is known, strik<strong>in</strong>g workers do nothave unlimited f<strong>in</strong>ancial means to be able to carrythrough such a strike.Now, if you look at who is the <strong>in</strong>ternational chairman<strong>of</strong> CNH, it is a certa<strong>in</strong> Jean-Pierre Rosseau, who sits onthe board <strong>of</strong> a company called Euraseo, where onceaga<strong>in</strong>, the chairman <strong>of</strong> the advisory board is a certa<strong>in</strong>Michel David-Weill, that is, the former head <strong>of</strong> LazardFrères. Euraseo is <strong>in</strong> practice the most important player<strong>in</strong> the three comb<strong>in</strong>ed bank<strong>in</strong>g houses <strong>of</strong> Lazard <strong>in</strong>Paris, London, and New York. We have <strong>in</strong> view anunparalleled takeover—one could almost say robbery—<strong>of</strong> Germany by these locusts; for example, the Germanand French Telekoms are cont<strong>in</strong>ually sell<strong>in</strong>g <strong>of</strong>f parts <strong>of</strong>themselves, such as AWB, but also medium-sized <strong>in</strong>dustrialenterprises, villas, and social properties are be<strong>in</strong>gactually dismantled <strong>in</strong> a flash <strong>in</strong> this way, so that practicallynoth<strong>in</strong>g <strong>of</strong> Germany will survive, if a halt is notcalled.<strong>The</strong> Treuhand PrecedentBut naturally this development, which has now <strong>in</strong> acerta<strong>in</strong> way arrived at an end-phase, began much, muchearlier, if you look at the development after 1989, andespecially after 1991, when Berl<strong>in</strong>, above all, and thenew federal states, were taken apart. That is an <strong>in</strong>terest<strong>in</strong>gcase study, which has contributed to this development.So let’s look back aga<strong>in</strong> to the 8th <strong>of</strong> March 1990.<strong>The</strong>n, the last People’s Assembly <strong>of</strong> the G.D.R. [EastGermany] decided on the establishment <strong>of</strong> theTreuhand, with the explicit purpose <strong>of</strong> preserv<strong>in</strong>g thepeople’s property.But already under the government <strong>of</strong> Lothar deMaziere, there was no longer any talk about safeguard<strong>in</strong>gthe people’s property, but privatization andreorganization were go<strong>in</strong>g ahead, as written <strong>in</strong> theLaw Sheet <strong>of</strong> June 22, 1990. <strong>The</strong>n the resistance with<strong>in</strong>the population grew, s<strong>in</strong>ce everyth<strong>in</strong>g was <strong>in</strong> suchgreat chaos. <strong>The</strong>refore, <strong>in</strong> August 1990, they appo<strong>in</strong>tedDetlev Karsten Rohwedder, who had a very good reputation,because he was the “savior” <strong>of</strong> Hoesch AG, and29


then had led Hoesch AG <strong>in</strong> the Ruhr region out <strong>of</strong> thered, <strong>in</strong>to the black; he also had a reputation as someonewho understood someth<strong>in</strong>g about physical economy,and was also sensible <strong>in</strong> respect to the socialeffects <strong>of</strong> such transformations. But he was, up untilthen, <strong>in</strong> a m<strong>in</strong>ority faction on the board <strong>of</strong> theTreuhand. <strong>The</strong> oppos<strong>in</strong>g position was held by BirgitBreuel, who stood for direct privatization, whileRohwedder came more and more to the idea that itwould not work to privatize the whole <strong>in</strong>dustry <strong>of</strong> theformer G.D.R., but that it was necessary first to reorganize,and then to privatize, with the idea <strong>of</strong> preserv<strong>in</strong>gas many jobs as possible, and at the same time creat<strong>in</strong>gnew jobs.Now, Birgit Breuel had acquired a certa<strong>in</strong> reputationas Lower Saxony Economics M<strong>in</strong>ister, where she hadput through an absolutely brutal campaign <strong>of</strong> de-statificationand de-bureaucratization. And she immediatelyput Rohwedder under pressure, and also made her ownpress declarations, so that the Treuhand at that timespoke with two tongues.Rohwedder not only came under pressure as a result<strong>of</strong> this opposition on the Treuhand board, but through<strong>in</strong>ternational consult<strong>in</strong>g firms, American and British<strong>in</strong>vestment bankers, who accused him <strong>of</strong> stopp<strong>in</strong>g foreign<strong>in</strong>vestment. But criticism also came from the CDU[Christian Democratic Union]—Biedenkopf, for example,and also Geissler, who reproached him for his failures.<strong>The</strong>n, as is known, Rohwedder was shot on April 1,1991.“Just <strong>in</strong> time,” a week before, a huge campaign hadbeen started about a supposed connection between theStasi [East German secret service] and the RAF [RedArmy Faction, a terrorist gang], which was exposed ashort time later as a total media hoax, but which totallydom<strong>in</strong>ated the climate <strong>in</strong> the media dur<strong>in</strong>g the period<strong>of</strong> the Rohwedder murder. Everyone said that theStasi was beh<strong>in</strong>d it. And therefore, naturally, the<strong>in</strong>vestigation was guided onto a certa<strong>in</strong> track. A shorttime later, this hoax disappeared from sight. It wasclear that it had been badly overblown by two Monitorjournalists.But what rema<strong>in</strong>ed was the idea that there was athird generation <strong>of</strong> the RAF. Now, the “third generation<strong>of</strong> the RAF” is a phantom. No one has ever seen it, thereis no pro<strong>of</strong> <strong>of</strong> whether it exists or not, but it has beenheld responsible. Thus it happened, that <strong>in</strong> theRohwedder case there were unbelievable holes <strong>in</strong> hissecurity screen, and no results from the search for hiskillers.Still, the notable th<strong>in</strong>g about Rohwedder’s death isthat, if one considers cui bono?, one comes to thehypothesis which John Perk<strong>in</strong>s wrote about <strong>in</strong> his book<strong>The</strong> Economic Hit Men: that is, that Rohwedder, just likeHerrhausen, was an advocate <strong>of</strong> the Third World, <strong>of</strong> theworkers’ <strong>in</strong>terests, <strong>of</strong> social issues. This cui bono actuallyleads to other areas, because the beneficiaries were,without question, the <strong>in</strong>ternational f<strong>in</strong>ancial circles,who had the motive for do<strong>in</strong>g away with this man. Atleast, that is a question which one could have, and it isreally remarkable that the <strong>in</strong>vestigative authorities havenever raised it.In any case, the leaf turned for the <strong>in</strong>ternational<strong>in</strong>vestors at the moment Birgit Breuel becameRohwedder’s successor. She began with an unparalleledeconomic “clean sweep” <strong>in</strong> the new federalstates, but also <strong>in</strong> Berl<strong>in</strong>. One can argue whether, withthe downfall <strong>of</strong> the G.D.R., the claim <strong>of</strong> the citizens <strong>of</strong>the G.D.R. to their life’s achievements also was lost.But <strong>in</strong> my op<strong>in</strong>ion—and that is open to debate—anunparalleled crime aga<strong>in</strong>st humanity was carried out<strong>in</strong> the new federal states, where people were thrownout <strong>in</strong>to the cold overnight, because basically the peoplehad built up these enterprises. <strong>The</strong>y were, it’s true,part <strong>of</strong> the system, but one cannot simply throw themaway!<strong>The</strong> only ones who pr<strong>of</strong>ited from that, were the <strong>in</strong>ternationalf<strong>in</strong>ancial sharks, who really made unbelievablepr<strong>of</strong>its, s<strong>in</strong>ce the Treuhand then was the largest <strong>in</strong>dustrialhold<strong>in</strong>g company <strong>in</strong> the world. This was no smallth<strong>in</strong>g.Birgit Breuel and the SchrödersNow, just as a question—I don’t believe that this matterhas now been fully clarified. But let us now look at,who was this Birgit Breuel? Her father was Alw<strong>in</strong>Münchmeyer, a private banker from Hamburg. In 1969,Münchmeyer merged with Schröder Bank and theHengst and Co. Bank, and <strong>in</strong> this way the SchröderMünchmeyer Hengst & Co. Bank came <strong>in</strong>to existence,now suddenly united, but ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g the historicalcont<strong>in</strong>uity <strong>of</strong> the Schröder Bank.It is, so to speak, a very traditional bank, because thehead <strong>of</strong> Schröder Bank was a certa<strong>in</strong> Baron Rudolf vonSchröder, who was also the vice president <strong>of</strong> theHamburg-America L<strong>in</strong>e, which today is Hapag-Lloyd,and then came the daughter <strong>of</strong> the American <strong>in</strong>vestmentbank Brown Brothers Harriman. This was thebank <strong>of</strong> Prescott Bush, the grandfather <strong>of</strong> the currentU.S. President George W. (We have documented allthese th<strong>in</strong>gs which I mentioned <strong>in</strong> George Bush: <strong>The</strong>Unauthorized Biography [EIR, 1992]). We have not onlyreceived no compla<strong>in</strong>ts from George Bush (nor fromGeorge W. Bush) but, if you saw the election specialwhich President Cl<strong>in</strong>ton produced for his 1992 electioncampaign, a two-hour election special, then you sawthis Unauthorized Biography ly<strong>in</strong>g on the table. Weactually only researched and published this, <strong>in</strong> order tocatch the old Bush, and to substantially contribute sothat Cl<strong>in</strong>ton won <strong>in</strong> this way. And <strong>in</strong> a certa<strong>in</strong> way itwas a thank-you, that he put the book on the table. Allthe “records” exist, all the documents exist, which wehave published, which was the reason why a compla<strong>in</strong>tnever followed.30


Now, to Rudolf von Schröder: He was an <strong>in</strong>timate <strong>of</strong>Averell Harriman, the co-owner <strong>of</strong> the Hamburg-America L<strong>in</strong>e, who played a lead<strong>in</strong>g role <strong>in</strong> theAmerican eugenics movement, had <strong>in</strong>tensive relationswith the National Socialists, and very much admired, <strong>of</strong>all th<strong>in</strong>gs, the race theory <strong>of</strong> the Nazis, s<strong>in</strong>ce eugenicsencompassed the idea <strong>of</strong> breed<strong>in</strong>g men. And he als<strong>of</strong>ound the Aryan concepts very <strong>in</strong>terest<strong>in</strong>g—accord<strong>in</strong>g todocuments from the time <strong>of</strong> the Second World War, andalso from the U.S. government, with a focus on theHamburg-America-L<strong>in</strong>e, which was well known to havef<strong>in</strong>anced the National Socialists, and therefore, naturally,the enemy.Another family member was Kurt von Schröder, theco-director <strong>of</strong> Thyssen-Huette, <strong>of</strong> whom it is knownthat he directly f<strong>in</strong>anced Hitler. And Kurt von Schröderwas, together with Hjalmar Schacht, actually <strong>in</strong>strumental<strong>in</strong> help<strong>in</strong>g Hitler come to power. It is therefore<strong>in</strong>terest<strong>in</strong>g, that Lazard Frères, when its Germanbranch was founded <strong>in</strong> 1999, took over a large part <strong>of</strong>the customer base <strong>of</strong> Schröder Münchmeyer Hengst &Co. Bank, which was taken over on their side by LloydsBank. And Lazard Frères then rema<strong>in</strong>ed the chief coord<strong>in</strong>atorfor privatizations, and further mergers andacquisitions.Now back to Breuel. After Breuel took over theTreuhand <strong>in</strong> 1991, more and more banks took over thebus<strong>in</strong>ess <strong>of</strong> privatizations: Goldman Sachs, SGWarburg, Crédit Suisse First Boston, JP Morgan, MerrillLynch, etc. And through the Treuhand, this whole market<strong>of</strong> mergers and acquisitions, and therefore the mergersand acquisition bus<strong>in</strong>ess, was first opened <strong>in</strong>Germany, <strong>in</strong> a form which had never existed before. Andat the time, these banks made enormous pr<strong>of</strong>its, whilethe poor people became ever poorer.<strong>The</strong> Danger <strong>of</strong> a New FascismNow, a new phase has been reached, with an unparalleled“f<strong>in</strong>ancial locust” attack on Germany. And thequestion is, naturally, why no one from the various parties<strong>in</strong> the Bundestag will do anyth<strong>in</strong>g to prevent thetotal rip-<strong>of</strong>f <strong>of</strong> Germany? We have def<strong>in</strong>ed, <strong>in</strong> the case<strong>of</strong> the <strong>United</strong> <strong>States</strong> and the takedown <strong>of</strong> the auto sector,the role <strong>of</strong> Rohatyn very clearly. It is totally clear:<strong>The</strong>re are Senators, there are Congressmen, who lovemoney from Rohatyn more than the defense <strong>of</strong> theirconstituents. For that, there is a good word: namely,corruption!And I really have the horrible suspicion, which isworth confirm<strong>in</strong>g, that we <strong>in</strong> Germany and Berl<strong>in</strong>have a very similar situation. Presently, Germany isbe<strong>in</strong>g destroyed. And what these people <strong>in</strong>tend, is notonly to make pr<strong>of</strong>its, but they have an ideological idea<strong>of</strong> neo-feudalism, to completely tear down the socialstate, as it has been crystallized s<strong>in</strong>ce the 15thCentury, and orig<strong>in</strong>ated <strong>in</strong> Germany through theBismarck reforms 130 years ago. And when the soccerfever <strong>in</strong> Germany fades away on the 9th or 10th <strong>of</strong>July, people will rub their eyes, and see that dur<strong>in</strong>g thefour weeks they’ve been <strong>in</strong> fantasy-land, an unparalleledattack has been under way on their liv<strong>in</strong>g standards,on the <strong>in</strong>stitutions <strong>of</strong> the social state, and on thehealth system, and that the rich have become richer <strong>in</strong>the meantime, and the liv<strong>in</strong>g standards <strong>of</strong> the poorhave been reduced.<strong>The</strong>refore, what stands before us, what we’re look<strong>in</strong>gat, is the danger <strong>of</strong> a new fascism. And these bankersand these <strong>in</strong>terests are just the <strong>in</strong>struments. This is reallynoth<strong>in</strong>g new, because already <strong>in</strong> 1972, Lyndon<strong>LaRouche</strong> conducted a debate with the economist AbbaLerner, and <strong>in</strong> this debate Abba Lerner was so challengedthat he said: If we get the people to accept thepolicies <strong>of</strong> Hjalmar Schacht—i.e., the most brutaldestruction <strong>of</strong> liv<strong>in</strong>g standards, which f<strong>in</strong>ally led to concentrationcamps and the destruction <strong>of</strong> labor <strong>in</strong> them—then we don’t need a Hitler any more. And as a result, alead<strong>in</strong>g person <strong>in</strong> the Council <strong>of</strong> Cultural Freedom,Sidney Hook, who had followed this, dropped his maskand said: If <strong>LaRouche</strong> got Abba Lerner to say suchth<strong>in</strong>gs, which are taboo, then we must make sure thatwe never aga<strong>in</strong> conduct a debate with <strong>LaRouche</strong> onmatters <strong>of</strong> content—the discussion will be limited, it willbe conf<strong>in</strong>ed to slanders—but a debate, that is too dangerousfor us.<strong>The</strong> Battle <strong>in</strong> Berl<strong>in</strong><strong>The</strong> reason these th<strong>in</strong>gs are extremely important is:We must know where the enemy lies. And we mustexpose the <strong>in</strong>ternational proponents <strong>of</strong> this new fascistdanger. We will reach, with<strong>in</strong> a very short period <strong>of</strong>time, a turn<strong>in</strong>g-po<strong>in</strong>t <strong>in</strong> the f<strong>in</strong>ancial crisis, at whichpo<strong>in</strong>t the oligarchy, the <strong>Synarchist</strong> oligarchy, alreadyhas plans which they have made ready: <strong>The</strong>y want thecentral banks, the European Central Bank, the Berl<strong>in</strong>banks, and the bus<strong>in</strong>esses to take over <strong>in</strong> Berl<strong>in</strong>, thewhich will naturally be a massive attack on the liv<strong>in</strong>gstandards and lives <strong>of</strong> the population.Over the next weeks and months, we must do everyth<strong>in</strong>gto promote the alternative, which Lyndon<strong>LaRouche</strong> has brought to the agenda, specifically aNew Bretton Woods. And I would like to ask all <strong>of</strong> younot only to sign this call for a New Bretton Woods, notonly to organize for it, but to help us to make an examplehere <strong>in</strong> Berl<strong>in</strong>, by chas<strong>in</strong>g the anti-<strong>in</strong>dustrializationgroup<strong>in</strong>g out <strong>of</strong> the temple. I would like to <strong>in</strong>vite youto support the mayoral campaign <strong>of</strong> our candidateDaniel Buchmann, because Berl<strong>in</strong> must become thegateway to the Eurasian Land-Bridge. And it mustbecome a symbol <strong>of</strong> hope, so that we actually create,over the next 50 years, a totally different world order,<strong>in</strong> which each man and woman on this planet has theright and possibility for a life worthy <strong>of</strong> a humanbe<strong>in</strong>g.<strong>The</strong>refore, support Daniel Buchmann!31


<strong>The</strong> Snake and the Rabbitsby Tony Papertacques Chem<strong>in</strong>ade, the authorJ<strong>of</strong> the accompany<strong>in</strong>g article, isa brilliant leader <strong>of</strong> France, whois hated by the mediocrities,because they resent the competition.He is also a candidate forPresident <strong>of</strong> France.But it will be difficult for theEnglish-speak<strong>in</strong>g reader to graspthe implications <strong>of</strong> Chem<strong>in</strong>ade’suse <strong>of</strong> the French language. (<strong>The</strong>French orig<strong>in</strong>al may be found atwww.@chem<strong>in</strong>ade2007.org.) Tobeg<strong>in</strong> with, despite the ghastl<strong>in</strong>ess<strong>of</strong> the apparent subject,which is that yet another fascisttakeover <strong>of</strong> France is now <strong>in</strong>process, nevertheless, the Frencheducatedreader will immediatelysense that the article and itsauthor alike are actually tremendousfun.In his style and his viewpo<strong>in</strong>t,Chem<strong>in</strong>ade represents the legacy<strong>of</strong> France, go<strong>in</strong>g back to Louis XI and Rabelais.Chem<strong>in</strong>ade is work<strong>in</strong>g from the standpo<strong>in</strong>t <strong>of</strong> theissue <strong>of</strong> Synarchy, and look<strong>in</strong>g at France from the standpo<strong>in</strong>t<strong>of</strong> Synarchy, whose history goes back to the formation<strong>of</strong> the Mart<strong>in</strong>ist Order <strong>in</strong> the 18th Century, whena series <strong>of</strong> forced-march reorganizations <strong>of</strong> EuropeanFreemasonry, pushed through from London, f<strong>in</strong>allyhatched Mart<strong>in</strong>ism out <strong>of</strong> France as an elite, supersecretoccult Freemasonry.Early Mart<strong>in</strong>ist leaders <strong>in</strong>cluded the Franz AntonMesmer exposed as a hoax by Benjam<strong>in</strong> Frankl<strong>in</strong> andhis French ally Jean Sylva<strong>in</strong> Bailly; the conspiratorGiovanni Casanova who was the target <strong>of</strong> Mozart’sopera Don Giovanni; and bloodthirsty Savoyard noblemanJoseph de Maistre, the designer <strong>of</strong> the personalityand role <strong>of</strong> Napoleon Bonaparte, and thus <strong>of</strong> such laterknock-down imitations as Napoleon III, Mussol<strong>in</strong>i, and32Nazi troops <strong>in</strong> Paris dur<strong>in</strong>g World War II. <strong>The</strong> context for Chem<strong>in</strong>ade’s article (p. 34) is“his understand<strong>in</strong>g <strong>of</strong> France and its special history, located <strong>in</strong> the issue <strong>of</strong> Mart<strong>in</strong>ism from1785 to today” and the “role <strong>of</strong> the Paris-based Synarchy, as a top-level secret committee <strong>of</strong>f<strong>in</strong>ancier families, <strong>in</strong> br<strong>in</strong>g<strong>in</strong>g fascism to power throughout cont<strong>in</strong>ental Europe from1922√45. . . .”Hitler. It was thus with some justice that the late IsaiahBerl<strong>in</strong> <strong>of</strong> British Intelligence, dubbed Maistre the “firstfascist.”Beethoven antagonist Johannes Maelzel, whose claimto have <strong>in</strong>vented “artificial <strong>in</strong>telligence” was exposed asa fraud by Edgar Allan Poe <strong>in</strong> a famous 1836 newspaperarticle, belonged to a later Mart<strong>in</strong>ist/<strong>Synarchist</strong>generation.It was the Mart<strong>in</strong>ist Order, <strong>in</strong>clud<strong>in</strong>g a personalrole by its then-nom<strong>in</strong>al leader, Louis-Claude deSa<strong>in</strong>t-Mart<strong>in</strong>, which arranged the butchery and lunacy<strong>of</strong> the French Revolution. This snuffed out thepossibility,—or rather, the immediate prospect,—that the just-won American Revolution would berepeated <strong>in</strong> Europe’s most advanced country, France.<strong>The</strong>n the Revolution’s sequel <strong>in</strong> the so-calledNapoleonic Wars, smashed all <strong>of</strong> Cont<strong>in</strong>ental Europe


<strong>in</strong>to a pulp from which it would not beg<strong>in</strong> to recoverfor two generations. <strong>The</strong> new American republic wasisolated.Thus, we have here a specifically, idiosyncraticallyFrench entity, Mart<strong>in</strong>ism/Synarchy, which, on theother hand, is also identical to the current, post-1763form <strong>of</strong> Anglo-Dutch Liberal world empire,—todaycalled “globalization.” We see this story repeated andconfirmed <strong>in</strong> the history <strong>of</strong> Mart<strong>in</strong>ism/Synarchy from1785,—when Mart<strong>in</strong>ist magician “Count Cagliostro”(Joseph Balsamo) rigged the “Queen’s Necklace Affair”to prepare the French Revolution,—right through tothe present.Thus, the context for Chem<strong>in</strong>ade’s article is hisunderstand<strong>in</strong>g <strong>of</strong> France and its special history, located<strong>in</strong> the issue <strong>of</strong> Mart<strong>in</strong>ism from 1785 to today.<strong>The</strong> role <strong>of</strong> the Paris-based Synarchy, as a top-levelsecret committee <strong>of</strong> f<strong>in</strong>ancier families, <strong>in</strong> br<strong>in</strong>g<strong>in</strong>g fascismto power throughout cont<strong>in</strong>ental Europe from1922-1945, is well-known and has been documentedbefore <strong>in</strong> these pages. We have also called attentionhere, to the repeated failure <strong>of</strong> the French Synarchy tooverthrow the Third Republic and put France underfascist dictatorship, through three failed coup attemptsbetween 1923 and 1938. It was this record <strong>of</strong> failurewhich led the French <strong>Synarchist</strong> Charles Maurras(1868-1952), to say <strong>of</strong> the Nazi <strong>in</strong>vasion <strong>of</strong> 1940, whichled to the establishment <strong>of</strong> the French fascist “Vichy”government over the south <strong>of</strong> France, that it was a“div<strong>in</strong>e surprise.” But it was <strong>in</strong> reality no surprise to theSynarchy, which had opened the gates to theReichswehr,—this is the answer to the “mystery” <strong>of</strong>how a great power like France could fall to Hitler afteronly six weeks <strong>of</strong> fight<strong>in</strong>g.Now, <strong>in</strong> a sense, we have come full circle, asChem<strong>in</strong>ade <strong>in</strong>dicates.As Lyndon <strong>LaRouche</strong> said <strong>in</strong> a recent discussion,“<strong>The</strong> problem is, people make the Hitler Nazi movementas the problem <strong>of</strong> that period, rather than see<strong>in</strong>g theHitler Nazi movement as an <strong>in</strong>strument <strong>of</strong> the forces, anexpendable <strong>in</strong>strument <strong>of</strong> the forces who caused theproblem and were direct<strong>in</strong>g it. Hitler is dead. <strong>The</strong> Nazisare generally dead. But! <strong>The</strong> people who created them asan <strong>in</strong>strument are still alive, and are on the verge <strong>of</strong> tak<strong>in</strong>gworld power today.I would add to that,” he cont<strong>in</strong>ued. “People exaggeratethe significance <strong>of</strong> the Hitler Nazi movement, whichwas a terrible th<strong>in</strong>g <strong>in</strong> its time, but it was a creation, apuppet <strong>of</strong> a much larger force, which was temporarilyembarrassed at the end <strong>of</strong> the war, when Hitler wasdefeated, but came back <strong>in</strong> the name <strong>of</strong> be<strong>in</strong>g our ‘necessaryanti-Communist allies.’“That’s the truth <strong>of</strong> the matter. <strong>The</strong>re’s no differencebetween the people, <strong>of</strong> the f<strong>in</strong>ancial group, which areAnglo-Dutch Liberal and French <strong>Synarchist</strong>, who createdHitler, and created that <strong>in</strong>tention, and the crowdbeh<strong>in</strong>d Rohatyn today. That’s the concept. That’s theU.S. National ArchivesAdolf Hilter <strong>in</strong> Paris, with Albert Speer (left), <strong>in</strong> 1940. <strong>The</strong>f<strong>in</strong>ancial group <strong>of</strong> Anglo-Dutch liberals and French <strong>Synarchist</strong>swho created Hitler, are the same crowd beh<strong>in</strong>d Felix Rohatyn etal. today.truth <strong>of</strong> the matter.”As the long-time head <strong>of</strong> Lazard Frères for the <strong>United</strong><strong>States</strong>, Felix Rohatyn was, and still is, a topmost representative<strong>of</strong> the <strong>Synarchist</strong> International worldwide. Itwas Lazard Frères which was identified by U.S. <strong>in</strong>telligence,dur<strong>in</strong>g World War II, as the center <strong>of</strong> the Parisbased<strong>Synarchist</strong>/fascist conspiracy, along with France’sBanque Worms, a Lazard creation. Rohatyn’s patronand virtual father, André Meyer, who brought him <strong>in</strong>tothe bank and ano<strong>in</strong>ted him as his successor, had beennamed by U.S. <strong>in</strong>telligence as a <strong>Synarchist</strong> controller,from the days when he was a top leader <strong>of</strong> Lazard Paris,before 1940.Now Rohatyn and the Synarchy are enter<strong>in</strong>g the lastphases <strong>of</strong> a new “trustification,” like that which preparedthe way for Nazism earlier, <strong>in</strong> which they are seiz<strong>in</strong>gand destroy<strong>in</strong>g the elements <strong>of</strong> physical economic<strong>in</strong>frastructure and real-wealth production, on which thesovereign nation-state, their chosen enemy, depends forthe possibility <strong>of</strong> its existence.As you will see <strong>in</strong> Chem<strong>in</strong>ade’s report, most <strong>of</strong> theFrench elite is play<strong>in</strong>g the part <strong>of</strong> the rabbit hypnotizedby the snake,—those, that is, who have not thought itsafer to jo<strong>in</strong> with the snake aga<strong>in</strong>st the other rabbits.<strong>The</strong> majority <strong>of</strong> the U.S. Senate is do<strong>in</strong>g the same th<strong>in</strong>g.Chem<strong>in</strong>ade is not.33


Jacques Chem<strong>in</strong>adeLet’s Stop Putt<strong>in</strong>gFrance on Sale<strong>LaRouche</strong> associate Chem<strong>in</strong>ade is a candidate <strong>in</strong> the2007 French Presidential elections.34On present<strong>in</strong>g the European Green Book onEnergy, José Manuel Durão Barroso, chairman<strong>of</strong> the European Commission, let the catout <strong>of</strong> the bag: “Once and for all, let there be an end toprotectionism and knee-jerk patriotic reactions,” hesaid. Claim<strong>in</strong>g opposition to this, France’s PrimeM<strong>in</strong>ister, Dom<strong>in</strong>ique de Villep<strong>in</strong>, puts forward his“economic patriotism.”<strong>The</strong> truth lies elsewhere than <strong>in</strong> the nice words <strong>of</strong> thepoliticians. Beyond the facade, one must face reality: Atthe center <strong>of</strong> a French capitalism gone mad, which is tosay f<strong>in</strong>ancial, there is a veritable <strong>in</strong>vasion <strong>of</strong> our publicarena by an avalanche <strong>of</strong> mult<strong>in</strong>ational, “non-resident”<strong>in</strong>terests. <strong>The</strong>ir objective is to destroy what rema<strong>in</strong>s <strong>of</strong>the French nation state, and to impose the power <strong>of</strong> af<strong>in</strong>ancial conglomerate—synarchistand oligarchical—without honor, law,or borders.This f<strong>in</strong>ancial fascism emerges brutally,as it did dur<strong>in</strong>g the thirties, withthe same economic features and forthe same reasons. In the context <strong>of</strong> thebreakdown <strong>of</strong> the <strong>in</strong>ternational monetarysystem, it <strong>in</strong>tends to build anEmpire capable <strong>of</strong> crush<strong>in</strong>g any resistance,and impos<strong>in</strong>g the social austerityneeded to ma<strong>in</strong>ta<strong>in</strong> its power, whilewrit<strong>in</strong>g <strong>of</strong>f, if necessary, parts <strong>of</strong> itsown assets.This passage to the political phase<strong>of</strong> the f<strong>in</strong>ancial derail<strong>in</strong>g, began onAug. 15, 1971, when the U.S.Adm<strong>in</strong>istration put an end to theBretton Woods system by unpegg<strong>in</strong>gthe dollar from gold; it implies thedestruction <strong>of</strong> our republican order.Those lead<strong>in</strong>g that operation—<strong>of</strong>which personalities such as the formerambassador <strong>of</strong> the <strong>United</strong> <strong>States</strong> toFrance, Felix Rohatyn, and the <strong>in</strong>terestsnested <strong>in</strong> the Lazard Frères bank<strong>in</strong>goperations are emblematic—are aim<strong>in</strong>g for noth<strong>in</strong>gless than to impose the policies <strong>of</strong> Hjalmar Schachtand the pre-war Bank for International Settlements(BIS), without a Hitler, a Mussol<strong>in</strong>i or a Franco, but thistime on a world scale. Today, it is called “globalization.”History may stutter, but that is not a reason for us tobehave as it does. In June 1940, our gates were openedto the Nazi <strong>in</strong>vasion, and it was a “div<strong>in</strong>e surprise” <strong>of</strong>those who had long plotted to overthrow the Republic.<strong>The</strong> Péta<strong>in</strong>ist’s “patriotism” <strong>of</strong> French capital consisted<strong>in</strong> supply<strong>in</strong>g the German army with tires, and participat<strong>in</strong>g<strong>in</strong> the construction <strong>of</strong> the Atlantic Wall. Today, wemust immediately resist, and this resistance, def<strong>in</strong><strong>in</strong>gthe position <strong>of</strong> France, Germany, and <strong>of</strong> Europe towards“globalization,” must unite and catalyze the currents <strong>of</strong>social Christianity, Republican socialism, and true patrioticGaullism, that is to say, those currents rooted each<strong>in</strong> its own way, <strong>in</strong> the Common Good. This article, written<strong>in</strong> the context <strong>of</strong> my Presidentialcampaign, aims to provoke my fellowcitizens to reassert their dignity and tolaunch a mobilization that will retrieve“la France combattante” (fight<strong>in</strong>gFrance) as an idea, and not as a productsold at discount.Library <strong>of</strong> CongressMarshal Péta<strong>in</strong>, the French traitor,who extended a synarchist welcome tothe <strong>in</strong>vad<strong>in</strong>g Nazis <strong>in</strong> 1940, and thenmobilized French capital to supply theGerman army with tires.Mittal Steel-ArcelorWhile the “Europe <strong>of</strong> the GreatProjects” turns out to be a hoax, andwhile the euro operates as a tool fordismantl<strong>in</strong>g <strong>in</strong>dustry and agriculture,the <strong>of</strong>fensive <strong>of</strong> the f<strong>in</strong>ancial synarchyrema<strong>in</strong>s nearly unopposed. <strong>The</strong> pro<strong>of</strong>is <strong>in</strong> the grow<strong>in</strong>g number <strong>of</strong> takeoversand privatizations <strong>of</strong> economic <strong>in</strong>terestscritical to our political <strong>in</strong>dependence,and even to our mere economicexistence: Mittal Steel seizes control <strong>of</strong>Arcelor, Suez takes Gaz de France,and the New York Stock Exchange(NYSE) takes Euronext, slic<strong>in</strong>g up ourpublic sector so that they can obta<strong>in</strong>higher prices by sell<strong>in</strong>g bits andpieces, and recartelization framed by


EIRNS/Karel VereyckenAuthor Jacques Chem<strong>in</strong>ade launch<strong>in</strong>g his Presidential campaign<strong>in</strong> Clichy, France, on Feb. 25, 2006. Chem<strong>in</strong>ade urges hiscountrymen not to give the country to the Nazi f<strong>in</strong>aciers aga<strong>in</strong>,but, as fight<strong>in</strong>g French, to sweep aside the traitorous elites and<strong>in</strong>stitute a new economic order.“European” legislation on the “liberalization <strong>of</strong> publicmonopolies.”Another pro<strong>of</strong>? <strong>The</strong> behavior <strong>of</strong> Mesdames ClaraGaymard and Anne Lauvergeon, eager to drop theirpolitical postures to shamelessly sell themselves to theris<strong>in</strong>g f<strong>in</strong>ancial powers.Mittal Steel-Arcelor is, without doubt, the mostreveal<strong>in</strong>g case <strong>of</strong> the high treason <strong>of</strong> our“elites.” Jacques Chirac himself, earlierthis year, had denounced this “purelyf<strong>in</strong>ancial operation, devoid <strong>of</strong> any <strong>in</strong>dustrialobjective.” However, given the environmentthat Chirac has let grow, it hashappened, with <strong>in</strong>eluctable logic.Indeed, it was a friend <strong>of</strong> JacquesChirac, François P<strong>in</strong>ault, who supportedLakshmi Mittal, to whom he hadbeen <strong>in</strong>troduced by Anne Meaux, thepress relations chief for both . . . as wellas for parts <strong>of</strong> the <strong>of</strong>ficial French right.Accord<strong>in</strong>g to press reports, the“Indian group” managed to “w<strong>in</strong> the shareholders overby wav<strong>in</strong>g fistfuls <strong>of</strong> cash,” when it jacked up its bid to40.4 euros a share from 28 euros, thus plac<strong>in</strong>g the value<strong>of</strong> Arcelor at 25.4 billion euros, compared with 18.6 billion<strong>in</strong> late January.Greed has thus won the day, as the biggest and bestEuropean high-quality steel manufacturer falls prey to agroup that may wear an Indian mask, but is, <strong>in</strong> fact,London-based, and quoted on the Amsterdam stockexchange—a satellite <strong>of</strong> the f<strong>in</strong>ancial synarchy. Mittal’scurrent shareholders will acquire “only” 49.4% <strong>of</strong> thenew Mittal-Arcelor Group, and Arcelor’s shareholdersLakshmi Mittalwill own 50.6%. But an Arcelor executive, close to itschairman Guy Dollé, has stated that “whatever happens,Mittal will be the Group’s ma<strong>in</strong> shareholder,”while Arcelor’s shareholders, who do not form a homogeneousbloc, “will easily be dom<strong>in</strong>ated at stockholdermeet<strong>in</strong>gs.” In our “shareholder society,” the shareholdersdo lay down the law.Two po<strong>in</strong>ts can be underl<strong>in</strong>ed here to show the fullscope <strong>of</strong> this disastrous choice.First, <strong>in</strong> his attempt to counter Mittal, Guy Dollé hadgone to the Russian firm Severstal, led by AlexeiMordachov, who is close to Russian President VladimirPut<strong>in</strong>. Dollé has not changed his view, and cont<strong>in</strong>ues tobelieve that the alliance with Mittal makes no sense froman <strong>in</strong>dustrial standpo<strong>in</strong>t. But, like the French authorities,he was persuaded to cave <strong>in</strong>. Result: the legitimate discontent<strong>of</strong> the Russian authorities. <strong>The</strong> daily newspaperKommersant, reflect<strong>in</strong>g an <strong>of</strong>ficial standpo<strong>in</strong>t, reviewsthe consequences <strong>of</strong> the choice: “<strong>The</strong> decision, taken onthe eve <strong>of</strong> the G-8 summit [to be held at St. Petersburg]by a major European company . . . can seriously complicaterelations between Russia and the EU.”In fact, rather than support Put<strong>in</strong>, who now quotesFrankl<strong>in</strong> Roosevelt as a policy example to his nation,France has chosen sides with the f<strong>in</strong>ancial <strong>in</strong>terestsengaged <strong>in</strong> dismantl<strong>in</strong>g our own nation!Greed was not the “shareholders’ ” sole motive, but itappears that there was an overall political strategy atstake. Some basic facts throw more light on this: Onef<strong>in</strong>ds on the Board <strong>of</strong> Directors <strong>of</strong> Mittal Steel LewisKaden and Wilbur Ross, together with the NathanielRothschild, who co-chairs a hedge fund known asAtticus Partners, which is <strong>in</strong> the Lazardorbit.In 1984, Kaden, assisted by EugeneKeil<strong>in</strong> and Joshua Gotbaum <strong>of</strong> LazardFrères, led the team that drafted a reportsigned by Felix Rohatyn, LaneKirkland, and Irv<strong>in</strong>g Shapiro, “<strong>The</strong>Return to American Competitiveness:Proposals for an Industrial Policy.” Thatreport served as the <strong>in</strong>tellectual foundationfor the “rationalization” (that is,takedown) <strong>of</strong> the U.S. steel <strong>in</strong>dustry.Kaden became vice chairman <strong>of</strong>Citigroup, after the ISG-Mittal merger(as we shall shortly see). But today, it is Citigroup thatlent Mittal the $9.5 billion needed to take over Arcelor!As for Wilbur Ross, he has made wreck<strong>in</strong>g the U.S.steel <strong>in</strong>dustry a particular l<strong>in</strong>e <strong>of</strong> expertise. After the first(1986) and second (2000) bankruptcy <strong>of</strong> the giant steelcompany LTV, Ross took over its Chicago and Clevelandproduction units to form the International Steel Group(ISG). LTV and ISG then proceeded to <strong>in</strong>stitute massivelay<strong>of</strong>fs, cut pensions, and reduce production. In 2003,after Kaden had recruited Steve Miller to be the chairman<strong>of</strong> Bethlehem Steel, the latter sold <strong>of</strong>f most <strong>of</strong> itssteel bus<strong>in</strong>ess to Ross. Ross F<strong>in</strong>ancial then sold ISG to . .35


. Mittal Steel! Along the way, naturally, there were moredownsiz<strong>in</strong>gs and more plant closures. Steve Millerbecame chairman <strong>of</strong> the Delphi automobile parts, whichhe is dismantl<strong>in</strong>g, follow<strong>in</strong>g a scheme drafted by . . .Felix Rohatyn and Rothschild Inc.!It is essential now to review the three levels at whichthe <strong>in</strong>dustrial dismantl<strong>in</strong>g operates: the overall plan(Rohatyn-Kaden), the enforcement <strong>of</strong> the plan by Ross-Mittal-Rothschild, and f<strong>in</strong>ally its extension <strong>in</strong>to Europe(the Arcelor takeover). <strong>The</strong> shareholder greed is noth<strong>in</strong>gless than the expression <strong>of</strong> an overall political strategy.Now, who are Arcelor’s “shareholders,” and who hasused them? It is Goldman Sachs, which was advis<strong>in</strong>gArcelor and which led the revolt aga<strong>in</strong>st Severstal alongsideNathaniel Rothschild. <strong>The</strong> latter, through AtticusPartners, owns 1.3% <strong>of</strong> Arcelor and 1.2% <strong>of</strong> Mittal! Andwho was first to jump on board? Other hedge funds, aswell as U.S. and British pension funds that ownedaround 30% <strong>of</strong> Arcelor. Among those funds, accord<strong>in</strong>gto John Plender, writ<strong>in</strong>g <strong>in</strong> the F<strong>in</strong>ancial Times, wehave <strong>The</strong> Children’s Fund, Fidelity, Merrill Lynch, Deka,Centaurus, Heyman Investment Associates, and so on.In a nutshell, the so-called “<strong>in</strong>dependent” shareholderswere carefully managed and then thrown <strong>in</strong>to the frayby a brutal and well-organized conglomerate. So muchfor “free and unbridled” competition!No matter the sweet noth<strong>in</strong>gs murmured <strong>in</strong>to the ear<strong>of</strong> the gullible: Beh<strong>in</strong>d the Mittal-Arcelor merger loommassive closures and downsiz<strong>in</strong>g, not only <strong>in</strong> the U.S.Abut also <strong>in</strong> France.Already, the London Metal Exchange (LME) andNew York Mercantile Exchange (NYMEX) <strong>in</strong>tend to setup a world derivatives market for steel products. <strong>The</strong>Indian Multi-Commodity Exchange already conductssimilar operations, and the Shanghai Futures Exchangewill do so shortly. Steel, the very essence <strong>of</strong> any longtermeconomic development, is handed over to shorttermf<strong>in</strong>ancial speculation; its fate is sealed.Those who do not grasp that the logic beh<strong>in</strong>d theMittal-Arcelor merger derives from this “global” context,are useful fools. To realize this fully, let us turn now tothe Suez-Gaz de France deal.Suez-GDFAllow<strong>in</strong>g Gaz de France, the state’s natural gas concern,to be absorbed by Suez, the giant water company,is tantamount to hand<strong>in</strong>g over “the vital <strong>in</strong>terest <strong>of</strong> thenation” to an <strong>in</strong>ternational firm dom<strong>in</strong>ated by the sametype <strong>of</strong> <strong>in</strong>terests that control Mittal Steel. In promot<strong>in</strong>gthis deal, the government not only has gone back on itsword, but also asks the Parliament to follow it. In pr<strong>in</strong>ciple,by Act <strong>of</strong> Parliament dated July 22, 2004, the State’sshare <strong>of</strong> GDF’s capital was not to fall below 70%. But <strong>in</strong>the new entity, the State will control only 40%! From apurely formal standpo<strong>in</strong>t, it is GDF that would take overSuez, but Suez shareholders will de facto controlbetween 55 and 60% <strong>of</strong> the whole, which will be run byGerard Mestrallet, Suez’s current chairman.EIRNS/Dan SturmanFelix Rohatyn, agent <strong>of</strong> the French synarchy, is <strong>in</strong> the middle <strong>of</strong>moves to take over French <strong>in</strong>dustry.Suez itself is a firm whose ma<strong>in</strong> shareholders andBoard <strong>of</strong> Directors are the aforesaid Mestrallet, LordSimon <strong>of</strong> Highbury, Albert Frère, Paul Desmarais,Viscount Etienne Davignon, and Anne Lauvergeon.On its Ethics, Environment, and Susta<strong>in</strong>ableDevelopment Committee, and on its RemunerationCommittee, sit Lord Simon <strong>of</strong> Highbury, EtienneDavignon, and Paul Desmarais.Between 2001 and 2004, Felix Rohatyn sat on theSuez Board <strong>of</strong> Directors. In 2002, Rohatyn demanded <strong>of</strong>Mestrallet—who promptly caved <strong>in</strong>—that he ramthrough an “Action Plan” that <strong>in</strong>volved sweep<strong>in</strong>g austeritymeasures, the halv<strong>in</strong>g <strong>of</strong> <strong>in</strong>vestment, and massivedis<strong>in</strong>vestment. Basically, the concept was to make Suez<strong>in</strong>to a company controll<strong>in</strong>g water management, and tak<strong>in</strong>gover the energy sector: <strong>in</strong> short, to become a fullblowncartel, enjoy<strong>in</strong>g a stranglehold over the two fundamentalresources <strong>of</strong> any state.Rohatyn has been backed up especially by PaulDesmarais and Albert Frère, the group’s ma<strong>in</strong> shareholder.In April 2002, Rohatyn was appo<strong>in</strong>ted to thegroup’s Audit Committee.In October 2004, Mestrallet and Rohatyn convened aEuroplace Group conference <strong>in</strong> New York, to “boosttransatlantic <strong>in</strong>vestment.” <strong>The</strong> chairman <strong>of</strong> theManagement Board <strong>of</strong> Société Générale <strong>of</strong> Belgium, and<strong>of</strong> Suez, along with the man who has been beh<strong>in</strong>d thestrategic mergers and acquisitions s<strong>in</strong>ce the early sixties(the strategy <strong>of</strong> Lazard, led by André Meyer, forrecartellization <strong>of</strong> <strong>in</strong>dustry) thus jo<strong>in</strong>ed forces to runf<strong>in</strong>ancial “globalization,” they themselves be<strong>in</strong>g the“bra<strong>in</strong>s” <strong>of</strong> the operation. Included are:• Etienne Davignon, a Bilderberg Society member,chairman <strong>of</strong> Suez-Tractebel, and former chairman <strong>of</strong>Société Générale <strong>of</strong> Belgium, who drafted the notorious“Davignon plan,” pursuant to which the steel <strong>in</strong>dustry36


PRNewsFotoWilbur Ross, Jr. is an expert steel-<strong>in</strong>dustry wrecker. Now,as a director <strong>of</strong> Mittal Steel, he is aim<strong>in</strong>g at Arcelor.EC/Jan Van de VelViscount Etienne Davignon <strong>of</strong> Suez-Tractebel, a Bilderberger and one <strong>of</strong> theSuez vultures who <strong>in</strong>tend to eat up Gaz de France.(where one runs <strong>in</strong>to Arcelor), first <strong>in</strong> Europe and then<strong>in</strong> the U.S.A., was to be dismantled.• Albert Frère, who is one <strong>of</strong> the Paris Bourse’s top40 (CAC 40) largest <strong>in</strong>vestors. With shares <strong>in</strong> Total andSuez, he punched his way <strong>in</strong>to the capital <strong>of</strong> Lafarge(8%) and Eiffage (6.1%), and now runs the Bruxelles-Lambert Group (GBL), the strong-arm <strong>of</strong> his “f<strong>in</strong>ancialpr<strong>of</strong>its first and foremost” approach. He is a dear friend<strong>of</strong> Bernard Arnault (LVMH), with whom he purchasedthe top Cheval Blanc v<strong>in</strong>eyard <strong>in</strong> Bordelais; he frequentlymeets Ala<strong>in</strong> M<strong>in</strong>c and especially the Canadian PaulDesmarais—without whom he never makes a move.• Paul Desmarais, a Bruxelles Lambert GroupDirector, chair <strong>of</strong> the Sagard Private Equity PartnersCommittee <strong>in</strong> France, who is typical <strong>of</strong> the Canadian“comprador” class, a go-between for the U.S. f<strong>in</strong>ance oligarchsand the Anglo-French-European synarchy.• Anne Lauvergeon, who was at the Elysée Palaceunder François Mitterrand, and is now a partner atLazard Frères and a director at Total. She runs Areva,the French nuclear giant (see below). Her presence <strong>in</strong>dicatesthat an early move is on the table to concentratethe entire French energy sector under a s<strong>in</strong>gle umbrella.• Yves Thibault de Silguy, himself a Lazard oldboy, who sits on Suez’s Executive Committee, with hisdouble-folio address book: that <strong>of</strong> his French Cab<strong>in</strong>et-M<strong>in</strong>isterial posts and that <strong>of</strong> a former EuropeanCommissioner.This short survey lets us see the real nature <strong>of</strong> theSuez grab <strong>of</strong> Gaz de France. <strong>The</strong> deal was “sold” to publicop<strong>in</strong>ion by puff<strong>in</strong>g up a putative risk <strong>of</strong> takeover bythe Italian energy concern ENEL, a company for whichAla<strong>in</strong> M<strong>in</strong>c himself serves as an advisor. <strong>The</strong> fear <strong>of</strong>Beelzebub opened the door <strong>of</strong> the tavern to Satan!<strong>The</strong> next stage, if no opposition is raised, will be toprivatize Electricité de France (EDF), which will soon beconfronted with a newly created energy giant, licensedto sell to private households, bus<strong>in</strong>esses, and localauthorities, thanks to Gaz de France’s 14-million-strongclient list. EDF will then need a partner to diversify—and lumber<strong>in</strong>g over the horizon, comes Total-Elf-F<strong>in</strong>a,more than 50% owned by “non-resident” <strong>in</strong>vestmentfunds; that is, by Anglo-Americans. This way, the wholef<strong>in</strong>ancial takeover will be accomplished and France willbe run lock, stock, and barrel, through its energy sector.Noth<strong>in</strong>g has been done to oppose the creation <strong>of</strong> avast public energy pole unit<strong>in</strong>g EDF and GDF. <strong>The</strong>authorities have accepted the progressive dismantl<strong>in</strong>g,while spout<strong>in</strong>g purple patriotic prose.EuronextSteel, energy: At the same time, while try<strong>in</strong>g to conv<strong>in</strong>ceus that Paris will become Europe’s “future f<strong>in</strong>ancialcapital,” the current f<strong>in</strong>ancial operation targetsEuronext, the federation <strong>of</strong> European stock markets(Paris, Amsterdam, Brussels, and Lisbon). Its alliancewith the New York Stock Exchange has been presentedas a “merger between equals,” while <strong>in</strong> truth, U.S. f<strong>in</strong>ancial<strong>in</strong>terests will control 59% <strong>of</strong> its capital. <strong>The</strong> latter<strong>in</strong>terests <strong>in</strong>tend to get <strong>in</strong>to Europe—and the world—bysurf<strong>in</strong>g on Europe’s laxer regulations, and seiz<strong>in</strong>g holdboth <strong>of</strong> the London derivatives market (LondonInternational F<strong>in</strong>ancial Futures and Options Exchange,or Liffe) and <strong>of</strong> Euronext’s extraord<strong>in</strong>ary computer technologies.Writ<strong>in</strong>g <strong>in</strong> Le Monde June 27, we f<strong>in</strong>dFrançois Bujon de l’Estang, a former FrenchAmbassador to Wash<strong>in</strong>gton, and now chairman <strong>of</strong>Citigroup <strong>in</strong> France (sounds familiar. . .), who warmlyadvocates the deal. In the best <strong>of</strong> all possible worlds,“<strong>The</strong> rapprochement with New York is a unique opportunityfor Paris to become Europe’s f<strong>in</strong>ancial capitalwith<strong>in</strong> the world’s largest f<strong>in</strong>ancial organization, as Felix37


Nissan’s CEO CarlosGhosn (stand<strong>in</strong>g oncar) at the company’sCanton, Mississippiauto plant, where hehas shredded wagesand benefits. Now thislizard has his clawspo<strong>in</strong>ted at GeneralMotors.Sir HenryDeterd<strong>in</strong>g, RoyalDutch Shellchairman, whoadmired Hitlerand f<strong>in</strong>anced theNazi Party, via hisLazard banker.Rohatyn, former Ambassador <strong>of</strong> the <strong>United</strong> <strong>States</strong> toParis [sounds aga<strong>in</strong> familiar] recently underl<strong>in</strong>ed. . . .“This is France’s great chance to become the center <strong>of</strong>f<strong>in</strong>ancial gravity for the Euro zone . . . the new group<strong>in</strong>g’s<strong>in</strong>ternational Head Offices will rema<strong>in</strong> at Paris andAmsterdam for the spot market, and at London, forderivatives.”Shotgun wedd<strong>in</strong>gs, all, and all it shows is that thef<strong>in</strong>ancial synarchy <strong>in</strong>tends to move <strong>in</strong> massively on cont<strong>in</strong>entalEurope, while mov<strong>in</strong>g out <strong>of</strong> the U.S.A the highlyspeculative <strong>in</strong>struments <strong>of</strong> the system (Liffe, derivatives),to really be <strong>in</strong> a position to take the gloves <strong>of</strong>feverywhere <strong>in</strong> the world.Renault, EADS, Lagardère, Fogeard,Alcatel-Lucent . . .Other operations are to be <strong>in</strong>serted <strong>in</strong>to this samepicture.Carlos Ghosn, Renault-Nissan’s chairman, has justreceived an <strong>of</strong>fer from General Motors (GM), via theunsavory billionaire Kirk Kerkorian <strong>of</strong> Trac<strong>in</strong>da fundfame, who became General Motors’ major shareholder,with 9.5% <strong>of</strong> its capital. <strong>The</strong> agreement will apparentlycover GM and Nissan. As it happens, GM is currentlybe<strong>in</strong>g picked to the bone for hard cash by the f<strong>in</strong>ancialsharks, for whom Kerkorian is a pilot fish!<strong>The</strong> proposal, scurvy as it is, has been most amiablyreceived by Renault, which <strong>in</strong>tends to give the “opportunity”close study; Renault and Nissan form “an openalliance that was never restricted to two partners” and“could be broadened.”Kirk Kerkorian has gone so far as to suggest to CarlosGhosn to undertake a “pr<strong>of</strong>ound restructur<strong>in</strong>g” <strong>of</strong> GM,as he did with Nissan <strong>in</strong> Japan—cost-cutt<strong>in</strong>g, slash<strong>in</strong>gwages, shredd<strong>in</strong>g pension plans.Two aspects have to be underl<strong>in</strong>ed:First, Nissan, as it happens, already operates atCanton, Mississippi, pay<strong>in</strong>g its workers so meagerly thatoutsourc<strong>in</strong>g was unnecessary. As a U.S. trade unionist putit, “<strong>The</strong>y want to turn Mississippi <strong>in</strong>to a Manchukuo.”This implies that if Ghosn moves <strong>in</strong>, a policy <strong>of</strong> systematicwage cuts for GM workers is to be expected.Second, Renault-Nissan has <strong>in</strong>creas<strong>in</strong>gly been drawn<strong>in</strong>to Lazard Frères strategies, for which the latest turn <strong>of</strong>events is a further <strong>in</strong>dicator. Franck Riboud, onRenault’s Board <strong>of</strong> Directors, spent his entire career atDanone thanks to Michel-David Weill, chairman <strong>of</strong>Lazard Frères. Franck’s father and friend to Michel-David Weill, Anto<strong>in</strong>e Riboud (part <strong>of</strong> the transatlanticmilitary milieu, whose leisure hours are agreeably filledwith esotericism and telek<strong>in</strong>esis), was brother to JeanRiboud. It was Jean who <strong>in</strong>troduced Felix Rohatyn toFrançois Mitterrand.Another Renault Board member, François deCombret, has long been associated with Lazard Frèresand was among those who brought Carlos Ghosn <strong>in</strong>to theRenault management. We unavoidably unravel the samenetwork <strong>of</strong> <strong>in</strong>fluence, when we identify the same policy.At the same time, the French Alcatel (the world’s secondlargest telecommunications equipment group) ispurchas<strong>in</strong>g the U.S. firm Lucent; the French group’sshareholders will own 60% <strong>of</strong> the new entity’s capital.However, <strong>in</strong> respect to management and “bus<strong>in</strong>ess culture,”the new entity will be far more American thanFrench, and far more f<strong>in</strong>ancial than American. <strong>The</strong>operational boss will be Lucent’s Patricia Russo, anAmerican who lives <strong>in</strong> Paris. Most <strong>of</strong> the capital will begripped firmly <strong>in</strong> the fist <strong>of</strong> Anglo-Saxon <strong>in</strong>vestmentfunds. Just as we have seen with Euronext and Suez-GDF, the strategy is crystal clear: <strong>The</strong> f<strong>in</strong>ancial <strong>in</strong>terestsand head <strong>of</strong>fice will be based at Paris, to become theoperational center for a mult<strong>in</strong>ational synarchy.Many <strong>of</strong> France’s traditional social benefits are nowthreatened as well. This is “a pirates’ raid,” protestedDaniel Lebègue, former chairman <strong>of</strong> the Caisse desDepots et Consignations (CDC), <strong>in</strong> speak<strong>in</strong>g <strong>of</strong> themoves to merge Ixis (the merchant bank <strong>of</strong> the sav<strong>in</strong>gsbanks) with Natexis (the merchant bank for the so-38


called Banques Populaires). Lead<strong>in</strong>g the merger attemptis Darius Milhaud, the boss <strong>of</strong> the Caisse Nationale desCaisses d’Epargne (CNCE), and Philippe Dupont,chairman <strong>of</strong> the Banques Populaires. <strong>The</strong> merger wouldbe the death-knell for the Livret A public sav<strong>in</strong>gsaccount, which would mean the end <strong>of</strong> the “Frenchexception,” which gave high rates to public sav<strong>in</strong>gsaccounts while us<strong>in</strong>g the funds to generate credit forpublic hous<strong>in</strong>g projects.Philippe Dupont is most keen upon gett<strong>in</strong>g rid <strong>of</strong> theLivret A. Milhaud and Dupont suggest that the CDC,which manages the funds collected through the Livret A,withdraw from the CNCE’s capital, <strong>in</strong> this way forc<strong>in</strong>gits privatization. A friend <strong>in</strong> need is a friend <strong>in</strong>deed: <strong>The</strong>European Commission has <strong>of</strong> course opened an enquiry<strong>in</strong>to the Livret A’s “monopoly” position, after a compla<strong>in</strong>twas filed by the Crédit Agricole and other banks.<strong>The</strong> game is to strip the nation-state <strong>of</strong> each andevery economic tool heret<strong>of</strong>ore at its disposal, andreduce it to an enforcement agency for policies madeelsewhere.It is <strong>in</strong> front <strong>of</strong> this dispossession <strong>of</strong> the wealth <strong>of</strong> thestate, that unbelievable pr<strong>of</strong>its <strong>of</strong> stock options andsalaries proliferate for the top brass <strong>of</strong> the companies.Before World War I, the banker J.P. Morgan, not exactlya philanthropist, stated that a company’s boss shouldnever earn more than 20 times the wage he pays a worker.But Anto<strong>in</strong>e Zacharias, the V<strong>in</strong>ci chairman, hasgrabbed 250 million euros s<strong>in</strong>ce 2001—this represents5,770 years <strong>of</strong> average wage for one <strong>of</strong> his own employees,and is 17,000 times the m<strong>in</strong>imum wage.Noël Forgeard at European Aeronautic Defence andSpace Company (EADS) sold his stock options <strong>in</strong> Marchat the key moment <strong>in</strong> time, rak<strong>in</strong>g <strong>in</strong> pr<strong>of</strong>its <strong>of</strong> morethan 3.7 million euros. He did this, although at thattime, he had to know—as the trade unions themselvesknew—<strong>of</strong> the fact that EADS production <strong>of</strong> the A-380had fallen beh<strong>in</strong>d schedule, and that the share price wasabout to go through the floor. Insider trad<strong>in</strong>g? Oh no,lisps Forgeard—like Arnaud Lagardère, who also bysome miracle, sold half the 15% <strong>of</strong> EADS shares held byhis group. No, it is a simple matter <strong>of</strong> “<strong>in</strong>competence”for the first, and pure chance for the second!Forget the idea that those were <strong>in</strong>dividual moves;these are noth<strong>in</strong>g but symptoms <strong>of</strong> a global predatorystrategy for which corruption is but an <strong>in</strong>strument.Clara Gaymard and Anne Lauvergeon<strong>The</strong> treason <strong>of</strong> our elites is manifest <strong>in</strong> two extremecases, those <strong>of</strong> Clara Gaymard and Anne Lauvergeon.Gaymard is the daughter <strong>of</strong> Pr<strong>of</strong>essor Jerome Lejeuneand wife <strong>of</strong> Hervé Gaymard, the former EconomicsM<strong>in</strong>ister who hastily left his post after a property scandal.She was the president <strong>of</strong> the French <strong>in</strong>ternational<strong>in</strong>vestment agency (Agence Française desInvestissements Internationaux or AFII), and has nowresigned to head General Electric France (GE). Here wehave a high-rank<strong>in</strong>g civil servant, responsible for promot<strong>in</strong>gforeign <strong>in</strong>vestment <strong>in</strong>to France, elbow<strong>in</strong>g her way upto the trough, by jo<strong>in</strong><strong>in</strong>g one <strong>of</strong> the very firms that sheearlier promoted! GE is the world’s second largest commercialenterprise, seventh-largest contractor to thePentagon, and one <strong>of</strong> the Republican Party’s ma<strong>in</strong>donors. Now you beg<strong>in</strong> to understand why Mrs. Lejeune-Gaymard, Mr. Gaymard, and their friend Dom<strong>in</strong>iquePerben so obsessively opposed me personally (cf. ClaraLejeune, La vie est un bonheur, Criterion, pp. 72-73).In respect to Anne Lauvergeon, even if she supposedlybelongs on the other side <strong>of</strong> the political spectrum,hav<strong>in</strong>g been François Mitterrand’s little “sherpa,” thefact rema<strong>in</strong>s that she too is busy betray<strong>in</strong>g the national<strong>in</strong>terest: She has arranged to have the neo-conservativeSpencer Abraham lead the U.S. subsidiary <strong>of</strong> Areva,thereby plac<strong>in</strong>g the keys <strong>of</strong> France’s nuclear <strong>in</strong>dustry<strong>in</strong>to the sweaty palm <strong>of</strong> a former U.S. Secretary <strong>of</strong>Energy and em<strong>in</strong>ent member <strong>of</strong> the Federalist Society.That Society has defended the “unitary executive” theory,one purport<strong>in</strong>g to justify virtually unlimited powersfor the U.S. President <strong>in</strong> the event <strong>of</strong> conflict—such asthe alleged “War on Terror.” <strong>The</strong> men beh<strong>in</strong>d theFederalist Society are disciples <strong>of</strong> Carl Schmitt, the“crown-jurist” <strong>of</strong> Hitler’s Reich. Slightly embarrass<strong>in</strong>g!Stopp<strong>in</strong>g Today’s NazisWhat we face here, <strong>in</strong> all its shapes and sizes, andwhat has to be stopped overnight if France wants toavoid be<strong>in</strong>g under the control <strong>of</strong> a f<strong>in</strong>ancial synarchy, isa blatant return to the bad moral habits <strong>of</strong> the 1930s,after the crash <strong>of</strong> 1929. In 1954, a report published onLazard Frères reads: “When von Ribbentrop [Hitler’sForeign M<strong>in</strong>ister] came to Paris on December 6, 1938 tosign a good-neighbor agreement with Georges Bonnet,Foreign M<strong>in</strong>ister <strong>in</strong> the Daladier Government, a d<strong>in</strong>nerwas held at the Quai d’Orsay, attended by DanielSerruys <strong>of</strong> Lazard. At the time, André Meyer, the newmanag<strong>in</strong>g partner <strong>of</strong> Lazard, enterta<strong>in</strong>ed excellent relationswith Georges Bonnet, and supported him at thetime <strong>of</strong> Munich agreements.”Lazard was the banker <strong>of</strong> Royal Dutch Shell, whosechairman, Sir Henry Deterd<strong>in</strong>g, had f<strong>in</strong>anced the NaziParty. Until France was actually <strong>in</strong>vaded, André Meyersat on the sidel<strong>in</strong>es observ<strong>in</strong>g Hitler, while weav<strong>in</strong>g atight web with Banque Worms, the central pole <strong>of</strong> theAnglo-Franco-German synarchy, and the <strong>in</strong>strument <strong>of</strong>France’s “strange defeat.” Meyer left for the U.S.A <strong>in</strong>1940, after France was occupied, and took over Lazard<strong>in</strong> New York. On July 27, 1944, the U.S. military attachéat Algiers reported back to Wash<strong>in</strong>gton that f<strong>in</strong>ancialcircles favorable to collaboration with the Nazis had, littleby little, <strong>in</strong>filtrated Free France. In the appendix, thereport supplied a list <strong>of</strong> roughly 80 persons and <strong>in</strong>stitutions,the hard core <strong>of</strong> the synarchy. Among themappear Banque Lazard and one <strong>of</strong> its representatives—André Meyer. In the late 1950s, Meyer moved <strong>in</strong>to mergersand acquisitions, recartellization. In undertak<strong>in</strong>g there-creation <strong>of</strong> the cartels, Meyer’s friend and ma<strong>in</strong> asso-39


Two <strong>of</strong> the World War II U.S. <strong>in</strong>telligence documents obta<strong>in</strong>ed by EIR researchers from the National Archives, which demonstrate thesophisticated understand<strong>in</strong>g at the time <strong>of</strong> the role <strong>of</strong> the <strong>Synarchist</strong> International <strong>in</strong> direct<strong>in</strong>g the Nazi-Fascist axis.ciate, whom he considered as a son, was Felix Rohatyn.Doesn’t the Arabic proverb say that “the dog alwaysreturns to its own vomit”?We f<strong>in</strong>d Rohatyn aga<strong>in</strong> on our national scene, whenhe was U.S. Ambassador to Paris between 1997 and2001. He sat on the Suez Board <strong>of</strong> Directors, andrema<strong>in</strong>s to this day on the Board <strong>of</strong> LVMH (BernardArnault aga<strong>in</strong>), and the Board <strong>of</strong> the Lagardère Group(aga<strong>in</strong>) and <strong>of</strong> Publicis.S<strong>in</strong>ce treachery seems to have become a bad habit <strong>of</strong>our elites <strong>in</strong> times <strong>of</strong> crisis, isn’t it urgent this time toreplace them, and even to sweep them away, helped by afresh w<strong>in</strong>d blow<strong>in</strong>g from America?—not Bush, norCheney, nor the very opportunistic Hillary Cl<strong>in</strong>ton, butthe coalition <strong>of</strong> forces which Lyndon <strong>LaRouche</strong> is<strong>in</strong>spir<strong>in</strong>g on that side <strong>of</strong> the Atlantic.Time is overripe for a new economic and monetaryorder worldwide, to restore man’s labor, along with thespirit <strong>of</strong> discovery and improvement <strong>of</strong> nature, as anabsolute priority, at the expense <strong>of</strong> the f<strong>in</strong>ancial parasitismwe have just described, which carries <strong>in</strong> its wombthe “universal fascism” shamelessly described by theunadorned words <strong>of</strong> the American neo-conservativeMichael Ledeen.<strong>LaRouche</strong> PAC On the Internet: www.larouchepac.com call toll-free: 1-800-929-7566For more <strong>in</strong>formation, call:Northern Virg<strong>in</strong>ia 703-779-2150Wash<strong>in</strong>gton, D.C. 202-232-6004Baltimore, MD 410-747-3817Boston, MA 617-350-0040Chicago, IL 773-404-4848Detroit, MI 313-592-3945Hackensack, NJ 201-441-4888Houston, TX 713-541-2907Los Angeles, CA 323-259-1860Norfolk, VA 757-587-3885Oakland, CA 510-251-2518Philadelphia, PA 610-734-7080Seattle, WA 206-417-2363Paid for by the Lyndon <strong>LaRouche</strong> PAC, P.O. Box 6157, Leesburg, VA 20178.www.larouchepac.com and Not Authorized by Any Candidate or Candidate's Committee

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