Why the Banking System Is Breaking Up

By Michael Hudson

Source: The Unz Review

The collapses of Silvergate and Silicon Valley Bank are like icebergs calving off from the Antarctic glacier. The financial analogy to the global warming causing this collapse of supporting shelving is the rising temperature of interest rates, which spiked last Thursday and Friday to close at 4.60 percent for the U.S. Treasury’s two-year bonds. Bank depositors meanwhile were still being paid only 0.2 percent on their deposits. That has led to a steady withdrawal of funds from banks – and a corresponding decline in commercial bank balances with the Federal Reserve.

Most media reports reflect a prayer that the bank runs will be localized, as if there is no context or environmental cause. There is general embarrassment to explain how the breakup of banks that is now gaining momentum is the result of the way that the Obama Administration bailed out the banks in 2008 with fifteen years of Quantitative Easing to re-inflate prices for packaged bank mortgages – and with them, housing prices, along with stock and bond prices.

The Fed’s $9 trillion of QE (not counted as part of the budget deficit) fueled an asset-price inflation that made trillions of dollars for holders of financial assets – the One Percent with a generous spillover effect for the remaining members of the top Ten Percent. The cost of home ownership soared by capitalizing mortgages at falling interest rates into more highly debt-leveraged property. The U.S. economy experienced the largest bond-market boom in history as interest rates fell below 1 percent. The economy polarized between the creditor positive-net-worth class and the rest of the economy – whose analogy to environmental pollution and global warming was debt pollution.

But in serving the banks and the financial ownership class, the Fed painted itself into a corner: What would happen if and when interest rates finally rose?

In Killing the Host I wrote about what seemed obvious enough. Rising interest rates cause the prices of bonds already issued to fall – along with real estate and stock prices. That is what has been happening under the Fed’s fight against “inflation,” its euphemism for opposing rising employment and wage levels. Prices are plunging for bonds, and also for the capitalized value of packaged mortgages and other securities in which banks hold their assets on their balance sheet to back their deposits.

The result threatens to push down bank assets below their deposit liabilities, wiping out their net worth – their stockholder equity. This is what was threatened in 2008. It is what occurred in a more extreme way with S&Ls and savings banks in the 1980s, leading to their demise. These “financial intermediaries” did not create credit as commercial banks can do, but lent deposits out in the form of long-term mortgages at fixed interest rates, often for 30 years. But in the wake of the Volcker spike in interest rates that inaugurated the 1980s, the overall level of interest rates remained higher than the interest rates that S&Ls and savings banks were receiving. Depositors began to withdraw their money to get higher returns elsewhere, because S&Ls and savings banks could not pay higher their depositors higher rates out of the revenue coming in from their mortgages fixed at lower rates. So even without fraud Keating-style, the mismatch between short-term liabilities and long-term interest rates ended their business plan.

The S&Ls owed money to depositors short-term, but were locked into long-term assets at falling prices. Of course, S&L mortgages were much longer-term than was the case for commercial banks. But the effect of rising interest rates has the same effect on bank assets that it has on all financial assets. Just as the QE interest-rate decline aimed to bolster the banks, its reversal today must have the opposite effect. And if banks have made bad derivatives trades, they’re in trouble.

Any bank has a problem of keeping its asset valuations higher than its deposit liabilities. When the Fed raises interest rates sharply enough to crash bond prices, the banking system’s asset structure weakens. That is the corner into which the Fed has painted the economy by QE.

The Fed recognizes this inherent problem, of course. That is why it avoided raising interest rates for so long – until the wage-earning bottom 99 Percent began to benefit by the recovery in employment. When wages began to recover, the Fed could not resist fighting the usual class war against labor. But in doing so, its policy has turned into a war against the banking system as well.

Silvergate was the first to go, but it was a special case. It had sought to ride the cryptocurrency wave by serving as a bank for various currencies. After SBF’s vast fraud was exposed, there was a run on cryptocurrencies. Investor/gamblers jumped ship. The crypto-managers had to pay by drawing down the deposits they had at Silvergate. It went under.

Silvergate’s failure destroyed the great illusion of cryptocurrency deposits. The popular impression was that crypto provided an alternative to commercial banks and “fiat currency.” But what could crypto funds invest in to back their coin purchases, if not bank deposits and government securities or private stocks and bonds? What is crypto, ultimately, if not simply a mutual fund with secrecy of ownership to protect money launderers?

Silicon Valley Bank also is in many ways a special case, given its specialized lending to IT startups. New Republic bank also has suffered a run, and it too is specialized, lending to wealthy depositors in the San Francisco and northern California area. But a bank run was being talked up last week, and financial markets were shaken up as bond prices declined when Fed Chairman Jerome Powell announced that he actually planned to raise interest rates even more than he earlier had targeted, in view of the rising employment making wage earners more uppity in their demands to at least keep up with the inflation caused by the U.S. sanctions against Russian energy and food and the actions by monopolies to raise prices “to anticipate the coming inflation.” Wages have not kept pace with the resulting high inflation rates.

It looks like Silicon Valley Bank will have to liquidate its securities at a loss. Probably it will be taken over by a larger bank, but the entire financial system is being squeezed. Reuters reported on Friday that bank reserves at the Fed were plunging. That hardly is surprising, as banks are paying about 0.2 percent on deposits, while depositors can withdraw their money to buy two-year U.S. Treasury notes yielding 3.8 or almost 4 percent. No wonder well-to-do investors are running from the banks.

The obvious question is why the Fed doesn’t simply bail out banks in SVB’s position. The answer is that the lower prices for financial assets looks like the New Normal. For banks with negative equity, how can solvency be resolved without sharply reducing interest rates to restore the 15-year Zero Interest-Rate Policy (ZIRP)?

There is an even larger elephant in the room: derivatives. Volatility increased last Thursday and Friday. The turmoil has reached vast magnitudes beyond what characterized the 2008 crash of AIG and other speculators. Today, JP Morgan Chase and other New York banks have tens of trillions of dollar valuations of derivatives – casino bets on which way interest rates, bond prices, stock prices and other measures will change.

For every winning guess, there is a loser. When trillions of dollars are bet on, some bank trader is bound to wind up with a loss that can easily wipe out the bank’s entire net equity.

There is now a flight to “cash,” to a safe haven – something even better than cash: U.S. Treasury securities. Despite the talk of Republicans refusing to raise the debt ceiling, the Treasury can always print the money to pay its bondholders. It looks like the Treasury will become the new depository of choice for those who have the financial resources. Bank deposits will fall. And with them, bank holdings of reserves at the Fed.

So far, the stock market has resisted following the plunge in bond prices. My guess is that we will now see the Great Unwinding of the great Fictitious Capital boom of 2008-2015. So the chickens are coming hope to roost – with the “chicken” being, perhaps, the elephantine overhang of derivatives fueled by the post-2008 loosening of financial regulation and risk analysis.

The Democrats Are Now the War Party

The Democratic Party has become the party of permanent war, fueling massive military spending which is hollowing out the country from the inside and flirting with nuclear war.

By Chris Hedges

Source: ScheerPost.com

The Democrats position themselves as the party of virtue, cloaking their support for the war industry in moral language stretching back to Korea and Vietnam, when President Ngo Dinh Diem was as lionized as Ukrainian President Volodymyr Zelensky. All the wars they support and fund are “good” wars. All the enemies they fight, the latest being Russia’s Vladimir Putin and China’s Xi Jinping, are incarnations of evil. The photo of a beaming House Speaker Nancy Pelosi and Vice President Kamala Harris holding up a signed Ukrainian battle flag behind Zelensky as he addressed Congress was another example of the Democratic Party’s abject subservience to the war machine.

The Democrats, especially with the presidency of Bill Clinton, became shills not only for corporate America but for the weapons manufacturers and the Pentagon. No weapons system is too costly. No war, no matter how disastrous, goes unfunded. No military budget is too big, including the $858 billion in military spending allocated for the current fiscal year, an increase of $45 billion above what the Biden administration requested. 

The historian Arnold Toynbee cited unchecked militarism as the fatal disease of empires, arguing that they ultimately commit suicide. 

There once was a wing of the Democratic Party that questioned and stood up to the war industry: Senators J. William Fulbright, George McGovern, Gene McCarthy, Mike Gravel, William Proxmire and House member Dennis Kucinich. But that opposition evaporated along with the antiwar movement. When 30 members of the party’s progressive caucus recently issued a call for Biden to negotiate with Putin, they were forced by the party leadership and a warmongering media to back down and rescind their letter. Not that any of them, with the exception of Alexandria Ocasio-Cortez, have voted against the billions of dollars in weaponry sent to Ukraine or the bloated military budget. Rashida Tlaib voted present. 

The opposition to the perpetual funding of the war in Ukraine has come primarily from Republicans, 11 in the Senate and 57 in the House, several, such as Marjorie Taylor Greene, unhinged conspiracy theorists. Only nine Republicans in the House joined the Democrats in supporting the $1.7 trillion spending bill needed to prevent the government from shutting down, which included approval of $847 billion for the military — the total is boosted to $858 billion when factoring in accounts that don’t fall under the Armed Services committees’ jurisdiction. In the Senate, 29 Republicans opposed the spending bill. The Democrats, including nearly all 100 members of the House Congressional Progressive Caucus, lined up dutifully for endless war. 

This lust for war is dangerous, pushing us into a potential war with Russia and, perhaps later, with China — each a nuclear power. It is also economically ruinous. The monopolization of capital by the military has driven U.S. debt to over $30 trillion, $6 trillion more than the U.S. GDP of $24 trillion. Servicing this debt costs $300 billion a year. We spend more on the military than the next nine countries, including China and Russia, combined. Congress is also on track to provide an extra $21.7 billion to the Pentagon — above the already expanded annual budget — to resupply Ukraine.

“But those contracts are just the leading edge of what is shaping up to be a big new defense buildup,” The New York Times reported. “Military spending next year is on track to reach its highest level in inflation-adjusted terms since the peaks in the costs of the Iraq and Afghanistan wars between 2008 and 2011, and the second highest in inflation-adjusted terms since World War II — a level that is more than the budgets for the next 10 largest cabinet agencies combined.”

The Democratic Party, which, under the Clinton administration aggressively courted corporate donors, has surrendered its willingness to challenge, however tepidly, the war industry. 

“As soon as the Democratic Party made a determination, it could have been 35 or 40 years ago, that they were going to take corporate contributions, that wiped out any distinction between the two parties,” Dennis Kucinich said when I interviewed him on my show for The Real News Network. “Because in Washington, he or she who pays the piper plays the tune. That’s what’s happened. There isn’t that much of a difference in terms of the two parties when it comes to war.”

In his 1970 book “The Pentagon Propaganda Machine,” Fulbright describes how the Pentagon and the arms industry pour millions into shaping public opinion through public relations campaigns, Defense Department films, control over Hollywood and domination of the commercial media. Military analysts on cable news are universally former military and intelligence officials who sit on boards or work as consultants to defense industries, a fact they rarely disclose to the public. Barry R. McCaffrey, a retired four-star army general and military analyst for NBC News, was also an employee of Defense Solutions, a military sales and project management firm. He, like most of these shills for war, personally profited from the sales of the weapons systems and expansion of the wars in Iraq and Afghanistan.

On the eve of every congressional vote on the Pentagon budget, lobbyists from businesses tied to the war industry meet with Congress members and their staff to push them to vote for the budget to protect jobs in their district or state. This pressure, coupled with the mantra amplified by the media that opposition to profligate war funding is unpatriotic, keeps elected officials in bondage. These politicians also depend on the lavish donations from the weapons manufacturers to fund their campaigns.

Seymour Melman, in his book “Pentagon Capitalism,” documented the way militarized societies destroy their domestic economies. Billions are spent on the research and development of weapons systems while renewable energy technologies languish. Universities are flooded with military-related grants while they struggle to find money for environmental studies and the humanities. Bridges, roads, levees, rail, ports, electric grids, sewage treatment plants and drinking water infrastructures are structurally deficient and antiquated. Schools are in disrepair and lack sufficient teachers and staff. Unable to stem the COVID-19 pandemic, the for-profit health care industry forces families, including those with insurance, into bankruptcy. Domestic manufacturing, especially with the offshoring of jobs to China, Vietnam, Mexico and other nations, collapses. Families are drowning in personal debt, with 63 percent of Americans living paycheck to paycheck. The poor, the mentally ill, the sick and the unemployed are abandoned. 

Melman, who coined the term “permanent war economy,” noted that since the end of the Second World War, the federal government has spent more than half its discretionary budget on past, current and future military operations. It is the largest single sustaining activity of the government. The military-industrial establishment is nothing more than gilded corporate welfare. Military systems are sold before they are produced. Military industries are permitted to charge the federal government for huge cost overruns. Massive profits are guaranteed. For example, this November, the Army awarded Raytheon Technologies alone more than $2 billion in contracts, on top of over $190 million awarded in August, to deliver missile systems to expand or replenish weapons sent to Ukraine. Despite a depressed market for most other businesses, stock prices of Lockheed and Northrop Grumman have risen by more than 36 and 50 percent this year. 

Tech giants, including Amazon, which supplies surveillance and facial recognition software to the police and FBI, have been absorbed into the permanent war economy. Amazon, Google, Microsoft and Oracle were awarded multibillion-dollar cloud computing contracts for the Joint Warfighting Cloud Capability and are eligible to receive $9 billion in Pentagon contracts to provide the military with “globally available cloud services across all security domains and classification levels, from the strategic level to the tactical edge,” through mid-2028.

Foreign aid is given to countries such as Israel, with more than $150 billion in bilateral assistance since its founding in 1948, or Egypt, which has received over $80 billion since 1978 — aid that requires foreign governments to buy weapons systems from the U.S. The U.S. public funds the research, development and building of weapons systems and purchases them for foreign governments. Such a  circular system mocks the idea of a free-market economy. These weapons soon become obsolete and are replaced by updated and usually more costly weapons systems. It is, in economic terms, a dead end. It sustains nothing but the permanent war economy.

“The truth of the matter is that we’re in a heavily militarized society driven by greed, lust for profit, and wars are being created just to keep fueling that,” Kucinich told me.

In 2014, the U.S. backed a coup in Ukraine that installed a government that included neo-Nazis and was antagonistic to Russia. The coup triggered a civil war when the ethnic Russians in eastern Ukraine, the Donbass, sought to secede from the country, resulting in over 14,000 people dead and nearly 150,000 displaced, before Russia invaded in February. The Russian invasion of Ukraine, according to Jacques Baud, a former NATO security advisor who also worked for Swiss intelligence, was instigated by the escalation of Ukraine’s war on the Donbass. It also followed the Biden administration’s rejection of proposals sent by the Kremlin in late 2021, which might have averted Russia’s invasion the following year. 

This invasion has led to widespread U.S. and E.U. sanctions on Russia, which have boomeranged onto Europe. Inflation ravages Europe with the sharp curtailment of shipments of Russian oil and gas. Industry, especially in Germany, is crippled.  In most of Europe, it is a winter of shortages, spiraling prices and misery. 

“This whole thing is blowing up in the face of the West,” Kucinich warned. “We forced Russia to pivot to Asia, as well as Brazil, India, China, South Africa and Saudi Arabia. There’s a whole new world being formed. The catalyst of it is the misjudgment that occurred about Ukraine and the effort to try to control Ukraine in 2014 that most people aren’t aware of.”

By not opposing a Democratic Party whose primary business is war, liberals become the sterile, defeated dreamers in Fyodor Dostoevsky’s “Notes from the Underground.” 

A former convict, Dostoevsky did not fear evil. He feared a society that no longer had the moral fortitude to confront evil. And war, to steal a line from my latest book, is the greatest evil.

Why the CIA’s Operation Mockingbird is Widely Misunderstood

By Alex Constantine

Source: Constantine Report

In November, Newsweek, one of the most trusted news sources in the land, referred to Operation Mockingbird (CIA influence on the media, and, in many cases, infiltration) as “a supposed Cold War-era CIA program that is frequently referenced by QAnon conspiracy theorists.” (Source) Newsweek, of course, and the Washington Post were hubs in the Mockingbird network, so denial and misrepresentation are understandable.

But in the real world of CIA shenanigans …

Sourcewatch: “Operation Mockingbird was a secret Central Intelligence Agency campaign to influence domestic and foreign media beginning in the 1950s.

“The activities, extent and even the existence of the CIA project remain in dispute: the operation was first called Mockingbird in Deborah Davis’ 1979 book, Katharine the Great: Katharine Graham and her Washington Post Empire. But Davis’ book, alleging that the media had been recruited (infiltrated) by the CIA for propaganda purposes, was itself controversial and has since been shown to have had a number of erroneous assertions. More evidence of Mockingbird’s existence emerged in the 2007 memoir American Spy: My Secret History in the CIA, Watergate and Beyond, by convicted Watergate “plumber” E. Howard Hunt and The Mighty Wurlitzer: How the CIA Played America by Hugh Wilford (2008).”

https://www.sourcewatch.org/index.php/The_CIA_and_journalism

Carl Bernstein wrote about the program at length in Rolling Stone, and he waasn’t a QAnon adherent. Neither were the many journalists who have documented the history of the CIA-media relationship.

A misunderstanding about the code name Mockingbird has led some investigative reporters to dispute the operation’s existence. An FOIA request is submitted to the CIA for any related records. The Agency responds that it has no files under that code name. The journalist does receive documents on a Project Mockingbird, but that was an unrelated media surveillance op, and had nothing to do with Wurlitzers pumping out military-industrial propaganda. The journalist does his research, he finds that the CIA has, in fact, influenced public opinion via the news media, but where is the nomenclature Operation Mockingbird?

The journalist then brow-beats “conspiracy theorists” for falling into rabbit holes.

The fault lies with the reporter who doesn’t do essential homework on the origins of the bird. Officially, there is no  “Operation Mockingbird,” for the simple reason that the CIA didn’t exist when the it was conceived. Truman signed the Agency into existence in 1947. Allen Dulles, who would be appointed as its director, christened Operation Mockingbird the year before the Agency was born. His ambition to control men’s minds was a glint in his eye at the time. Cold war loomed, and he considered propaganda to be a priority. Dulles began lining up publishers, editors and journalists for an undertaking he thought of as mass mind control.

Nearly all of the CIA’s mind control files were destroyed in January, 1973 at the direction of DCI Richard Helms, so it’s possible that OM documents were among them. (Source: “Joint Hearings Before the Select Committee on Intelligence,” August 3, 1977, p. 3.)

By the time the CIA was repurposed from the obsolete postwar OSS, Operation Mockingbird was already well underway. As CIA director, Dulles pressed on with his objective to manipulate the common volk with dodgy news copy and op-ed treatises. It was a Dulles initiative before the CIA took Mockingbird under its wing.

Frank Wisner, the notorious Nazi recruiter, was selected to oversee the program. Wisner was recruited by Dean Acheson 1947 for a slot in the State Department’s Office of Occupied Territories. Shortly thereafter, the CIA created a the Office of Policy Coordination (OPC), the covert operations division of the Agency,  and Wisner was put in charge of the off-the-books media operation. (“Project Mockingbird,” the CIA journalist surveillance op, may well have been a sub-program.) So Mockingbird was a going concern by 1950, the year given by SourceWatch, among others, for its inception. Another common misunderstanding is the assumption that, because the CIA interacts with the media, all news is “fake news.” It isn’t. The overwhelming majority of journalists are independent of control beyond the editor’s desk. The lion’s share of all news reports are accurate enough — with the exception of the ultra-conservative echo chamber. But “fake news” is planted in the public print. Reader’s Digest, for instance, was a Mockingbird disinformation outlet for decades, and still prints propaganda. But the magazine wasn’t filled cover-to-cover with CIA perception management. One or two articles on Cold War topics were dropped into a mix of compressed books, human interest pieces, recipes, dieting tips, and the usual Digest  mom’s-jowls content. In some instances, paid CIA assets wrote the political articles. It’s the occasional planted story that warps public opinion. It’s not all that heavy-handed, a poison pill not a sledge hammer.

Newsweek was (and is) among the magazines most useful to the Operation. The code name may be unofficial, but infiltration of the media is not hard to prove, and it doesn’t take a complicit news weekly to know which way the wind blows.

“Putin Has Misread the West (And) if He Doesn’t Wake Up Soon, Armageddon Is Upon Us”

Interview with Paul Craig Roberts

By Mike Whitney and Paul Craig Roberts

Source: The Unz Review

Question 1—You think that Putin should have acted more forcefully from the beginning in order to end the war quickly. Is that an accurate assessment of your view on the war? And—if it is—then what do you think is the downside of allowing the conflict to drag on with no end in sight?

Paul Craig Roberts—Yes, you have correctly stated my position. But as my position can seem “unAmerican” to the indoctrinated and brainwashed many, those who watch CNN, listen to NPR, and read the New York Times, I am going to provide some of my background before going on with my answer.

I was involved in the 20th century Cold War in many ways: As a Wall Street Journal editor; as an appointee to an endowed chair in the Center for Strategic and International Studies, part of Georgetown University at the time of my appointment, where my colleagues were Henry Kissinger, National Security Advisor and Secretary of State, Zbigniew Brzezinski, National Security Advisor, and James Schlesinger, a Secretary of Defense and CIA director who was one of my professors in graduate school at the University of Virginia; as a member of the Cold War Committee on the Present Danger; and as a member of a secret presidential committee with power to investigate the CIA’s opposition to President Reagan’s plan to end the Cold War.

With a history such as mine, I was surprised when I took an objective position on Russian President Putin’s disavowal of US hegemony, and found myself labeled a “Russian dupe/agent” on a website, “PropOrNot,” which may have been financed by the US Department of State, the National Endowment for Democracy, or the CIA itself, still harboring old resentments against me for helping President Reagan end the Cold War, which had the potential of reducing the CIA’s budget and power. I still wonder what the CIA might do to me, despite the agency inviting me to address the agency, which I did, and explain why they went wrong in their reasoning.

I will also say that in my articles I am defending truth, not Putin, although Putin is, in my considered opinion, the most honest player, and perhaps the most naive, in the current game that could end in nuclear Armageddon. My purpose is to prevent nuclear Armageddon, not to take sides. I remember well President Reagan’s hatred of “those godawful nuclear weapons” and his directive that the purpose was not to win the Cold War but to end it.

Now to Mike’s question, which is to the point. Perhaps to understand Putin we need to remember life, or how it was presented by the West to the Soviet Union and the American broadcasts into the Soviet Union of the freedom of life in the West where streets were paved with gold and food markets had every conceivable delicacy. Possibly this created in the minds of many Soviets, not all, that life in the Western world was heavenly compared to the hell in which Russians existed. I still remember being on a bus in Uzbekistan in 1961 when a meat delivery truck appeared on the street. All traffic followed the truck to the delivery store where a several block long line already waited. When you compare this life with a visit to an American supermarket, Western superiority stands out. Russian hankerings toward the West have little doubt constrained Putin, but Putin himself has been affected by the differences in life between the US in those times and the Soviet Union.

Putin is a good leader, a human person, perhaps too human for the evil he faces. One way to look at my position that Putin does too little instead of too much is to remember the World War II era when British Prime Minister Chamberlin was accused of encouraging Hitler by accepting provocation after provocation. My own view of this history is that it is false, but it remains widely believed. Putin accepts provocations despite having declared red lines that he does not enforce. Consequently, his red lines are not believed. Here is one report:

RT reported on December 10 that “The US has quietly given Ukraine the go-ahead to launch long-range strikes against targets inside Russian territory, the Times reported on Friday, citing sources. The Pentagon has apparently changed its stance on the matter as it has become less concerned that such attacks could escalate the conflict.”

In other words, by his inaction Putin has convinced Washington and its European puppet states that he doesn’t mean what he says and will endlessly accept ever worsening provocations, which have gone from sanctions to Western financial help to Ukraine, weapons supply, training and targeting information, provision of missiles capable of attacking internal Russia, attack on the Crimea bridge, destruction of the Nord Stream pipelines, torture of Russian POWs, attacks on Russian parts of Ukraine reincorporated into the Russian Federation, and attacks on internal Russia.

At some point there will be a provocation that is too much. That’s when the SHTF.

Putin’s goal has been to avoid war. Thus, his limited military objective in Ukraine to throw the Ukrainian forces out of Donbass meant a limited operation that left Ukrainian war infrastructure intact, able to receive and deploy advanced weapons from the West, and to force Russian withdrawals to lines more defensible with the very limited forces Putin committed to the conflict. The Ukrainian offensives convinced the West that Russia could be defeated, thus making the war a primary way of undermining Russia as an obstacle to Washington’s hegemony. The British press proclaimed that the Ukrainian Army would be in Crimea by Christmas.

What Putin needed was a quick victory that made it completely clear that Russia had enforceable red lines that Ukraine had violated. A show of Russian military force would have stopped all provocations. The decadent West would have learned that it must leave the bear alone. Instead the Kremlin, misreading the West, wasted eight years on the Minsk Agreement that former German Chancellor Merket said was a deception to keep Russia from acting when Russia could have easily succeeded. Putin now agrees with me that it was his mistake not to have intervened in Donbass before the US created a Ukrainian army.

My last word to Mike’s question is that Putin has misread the West. He still thinks the West has in its “leadership” reasonable people, who no doubt act the role for Putin’s benefit, with whom he can have negotiations. Putin should go read the Wolfowitz Doctrine. If Putin doesn’t soon wake up, Armageddon is upon us, unless Russia surrenders.

Question 2—I agree with much of what you say here, particularly this: “Putin’s inaction has convinced Washington… that he doesn’t mean what he says and will endlessly accept ever worsening provocations.”

You’re right, this is a problem. But I’m not sure what Putin can do about it. Take, for example, the drone attacks on airfields on Russian territory. Should Putin have responded tit-for-tat by bombing supplylines in Poland? That seems like a fair response but it also risks NATO retaliation and a broader war which is definitely not in Russia’s interests.

Now, perhaps, Putin would not have faced these flashpoints had he deployed 500,000 combat troops to begin and leveled a number of cities on his way to Kiev, but keep in mind, Russian public opinion about the war was mixed at the beginning, and only grew more supportive as it became apparent that Washington was determined to defeat Russia, topple its government, and weaken it to the point where it could not project power beyond its borders. The vast majority of the Russian people now understand what the US is up-to which explains why Putin’s public approval ratings are presently at 79.4% while support for the war is nearly universal. In my opinion, Putin needs this level of support to sustain the war effort; so, postponing the mobilization of additional troops has actually worked to his benefit.

More importantly, Putin must be perceived to be the rational player in this conflict. This is absolutely essential. He must be seen as a cautious and reasonable actor who operates with restraint and within the confines of international law. This is the only way he will be able to win the continued support of China, India etc. We must not forget that the effort to build a multipolar world order requires coalition building which is undermined by impulsive, violent behavior. In short, I think Putin’s “go-slow” approach (your words) is actually the correct course of action. I think if he had run roughshod across Ukraine like Sherman on his way to the sea, he would have lost critical allies that will help him establish the institutions and economic infrastructure he needs to create a new order.

So, my question to you is this: What does a Russian victory look like? Is it just a matter of pushing the Ukrainian army out of the Donbas or should Russian forces clear the entire region east of the Dnieper River? And what about the west of Ukraine? What if the western region is reduced to rubble but the US and NATO continue to use it as a launching pad for their war against Russia?

I can imagine many scenarios in which the fighting continues for years to come, but hardly any that end in either a diplomatic settlement or an armistice. Your thoughts?

Paul Craig Roberts—I think, Mike, that you have identified the reasoning that explains Putin’s approach to the conflict in Ukraine. But I think Putin is losing confidence in his approach. Caution about approaching war is imperative. But when war begins it must be won quickly, especially if the enemy has prospects of gaining allies and their support. Putin’s caution delayed Russia’s rescue of Donbass for eight years, during which Washington created and equipped an Ukrainian army that turned what would have been an easy rescue in 2014 like Crimea into the current war approaching a year in duration. Putin’s caution in waging the war has given Washington and the Western media plenty of time to create and control the narrative, which is unfavorable to Putin, and to widen the war with US and NATO direct participation, now admitted by Foreign Minister Lavrov. The war has widened into direct attacks on Russia herself.

These attacks on Russia might bring the pro-Western Russian liberals into alignment with Putin, but the ability of a corrupt third world US puppet state to attack Russia is anathema to Russian patriots. The Russians who will do the fighting see in the ability of Ukraine to attack Mother Russia the failure of the Putin government.

As for China and India, the two countries with the largest populations, they have witnessed Washington’s indiscriminate use of force without domestic or international consequence to Washington. They don’t want to ally with a week-kneed Russia.

I will also say that as Washington and NATO were not constrained by public opinion in their two decades of wars in the Middle East and North Africa, based entirely on lies and secret agendas, what reason does Putin have to fear a lack of Russian public support for rescuing Donbass, formerly a part of Russia, from neo-Nazi persecution? If Putin must fear this, it shows his mistake in tolerating US-financed NGOs at work in Russia brainwashing Russians.

No, Putin should not engage in tit-for-tat. There is no need for him to send missiles into Poland, Germany, the UK, or the US. All Putin needs to do is to close down Ukrainian infrastructure so that Ukraine, despite Western help, cannot carry on the war. Putin is starting to do this, but not on a total basis.

The fact of the matter is that Putin never needed to send any troops to the rescue of Donbass. All he needed to do was to send the American puppet, Zelensky, a one hour ultimatum and if surrender was not forthcoming shut down with conventional precision missiles, and air attacks if necessary, the entirety of the power, water, and transportation infrastructure of Ukraine, and send special forces into Kiev to make a public hanging of Zelensky and the US puppet government.

The effect on the degenerate Woke West, which teaches in its own universities and public schools hatred of itself, would have been electric. The cost of messing with Russia would have been clear to all the morons who talk about Ukraine being in Crimea by Christmas. NATO would have dissolved. Washington would have removed all sanctions and shut up the stupid, war-crazy neoconservatives. The world would be at peace.

The question you have asked is, after all of Putin’s mistakes, what does a Russian victory look like? First of all, we don’t know if there is going to be a Russian victory. The cautious way that Putin reasons and acts, as you explained, is likely to deny Russia a victory. Instead, there could be a negotiated demilitarized zone and the conflict will be set on simmer, like the unresolved conflict in Korea.

On the other hand, if Putin is waiting the full deployment of Russia’s hypersonic nuclear missiles that no defense system can intercept and, following Washington, moves to first use of nuclear weapons, Putin will have the power to put the West on notice and be able to use the power of Russian military force to instantly end the conflict.

Question 3—You make some very good points, but I still think that Putin’s slower approach has helped to build public support at home and abroad. But, of course, I could be wrong. I do disagree strongly with your assertion that China and India “don’t want to ally with weak-kneed Russia”. In my opinion, both leaders see Putin as a bright and reliable statesman who is perhaps the greatest defender of sovereign rights in the last century. Both India and China are all-too-familiar with Washington’s coercive diplomacy and I’m sure they appreciate the efforts of a leader who has become the world’s biggest proponent of self-determination and independence. I’m sure the last thing they want, is to become cowering houseboys like the leaders in Europe who are, apparently, unable to decide anything without a ‘nod’ from Washington. (Note: Earlier today Putin said that EU leaders were allowing themselves to be treated like a doormat. Putin: “Today, the EU’s main partner, the US, is pursuing policies leading directly to the de-industrialization of Europe. They even try to complain about that to their American overlord. Sometimes even with resentment they ask ‘Why are you doing this to us?’ I want to ask: ‘What did you expect?’ What else happens to those who allow feet to be wiped on them?”)

Paul Craig Roberts—Mike, I agree that Russia for the reasons you provide is the choice partner of China and India. What I meant is that China and India want to see a powerful Russia that shields them from Washington’s interference. China and India are not reassured by what at times seems to be Putin’s irresolution and hesitancy. The rules that Putin plays by are no longer respected in the West.

Putin is correct that all European, and the Canadian, Australian, Japanese, and New Zealand governments, are doormats for Washington. What escapes Putin is that Washington’s puppets are comfortable in this role. Therefore, how much chance does he have in scolding them for their subservience and promising them independence? A reader recently reminded me about the Asch experiment in the 1950s, which found that people tended to conform to the prevalent narratives, and of the use to which Edward Bernays analysis of propaganda is put. And there is the information given me in the 1970s by a high government official that European governments do what we want because we “give the leaders bags of money. We own them. They report to us.”

In other words, our puppets live in a comfort zone. Putin will have a hard time breaking into this with merely exemplary behavior.

Question 4—For my final question, I’d like to tap into your broader knowledge of the US economy and how economic weakness might be a factor in Washington’s decision to provoke Russia. Over the last 10 months, we’ve heard numerous pundits say that NATO’s expansion to Ukraine creates an “existential crisis” for Russia. I just wonder if the same could be said about the United States? It seems like everyone from Jamie Diamond to Nouriel Roubini has been predicting a bigger financial cataclysm than the full-system meltdown of 2008. In your opinion, is this the reason why the media and virtually the entire political establishment are pushing so hard for a confrontation with Russia? Do they see war as the only way the US can preserve its exalted position in the global order?

Paul Craig Roberts—The idea that governments turn to war to focus attention away from a failing economy is popular, but my answer to your question is that the operating motive is US hegemony. The Wolfowitz Doctrine states it clearly. The doctrine says the principal goal of US foreign policy is to prevent the rise of any country that could serve as a constraint on US unilateralism. At the 2007 Munich security conference Putin made it clear that Russia will not subordinate its interest to the interest of the US.

There are some crazed neoconservatives in Washington who believe nuclear war can be won and who have shaped US nuclear weapons policy into a pre-emptive attack mode focused on reducing the ability of the recipient of a first strike to retaliate. The US is not seeking a war with Russia, but might blunder into one. The operative neoconservative policy is to cause problems for Russia that can cause internal problems, distract the Kremlin from Washington’s power moves, isolate Russia with propaganda, and even possibly pull off a color revolution inside Russia or in a former Russian province, such as Belarus, as was done in Georgia and Ukraine. People have forgot the US-instigated invasion of South Ossetia by the Georgian army that Putin sent in Russian forces to stop, and they have forgot the recent disturbances in Kazakhstan that were calmed by the arrival of Russian troops. The plan is to keep picking away at the Kremlin. Even if Washington doesn’t meet in every case with the success enjoyed in the Maidan Revolution in Ukraine, the incidents succeed as distractions that use up Kremlin time and energy, result in dissenting opinions within the government, and that require military contingency planning. As Washington controls the narratives, the incidents also serve to blacken Russia as an aggressor and portray Putin as “the new Hitler.” The propaganda successes are considerable–the exclusion of Russian athletes from competitions, refusals of orchestras to play music of Russian composers, exclusion of Russian literature, and a general refusal to cooperate with Russia in any way. This has a humiliating effect on Russians and might be corrosive of public support for the government. It has to be highly frustrating for Russian athletes, ice skaters, entertainers, and their fans.

Nevertheless, the conflict in Ukraine can turn into a general war intended or not. This is my concern and is the reason I think the Kremlin’s limited go-slow operation is a mistake. It offers too many opportunities for Washington’s provocations to go too far.

There is an economic element. Washington is determined to prevent its European empire from being drawn into closer relations with Russia from energy dependence and business relationships. Indeed, some explain the economic sanctions as de-industrializing Europe in behalf of Washington’s economic and financial hegemony. See: https://www.unz.com/mhudson/german-interview/

Ransacking the World Economy Until “You’ll Own Nothing.”

Part 1: 5,000 Years Setting the Stage

By Robert J. Burrowes

According to a video published by the World Economic Forum in 2016, by 2030 ‘You’ll Own Nothing. And You’ll Be Happy.’

See 8 predictions for the world in 2030’.

Clearly, if this prediction is to come true, then many things must happen. Let me identify why the World Economic Forum believes it will happen and then investigate these claims. Among other questions, I will examine whether those who will own nothing will include the Rothschild, Rockefeller and other staggeringly wealthy families. Or, perhaps, whether they just mean people like you and me.

In fact, a primary intention behind the Elite’s ongoing technocratic coup, initiated in January 2020, is to trigger a process of depopulation, as well fundamentally reshape world order including by turning those humans left alive into “transhuman slaves”, drive the global economy to collapse and implement the final redistribution of global wealth from everyone else to this Elite.

Let me start with the briefest of histories so that what is happening can be understood as the ultimate conclusion of a long-standing agenda, identify who I mean by the ‘Global Elite’ (and its agents), then present the evidence to explain how this is happening and, most importantly, a comprehensive strategy to defeat it.

Needless to say, in the interests of keeping this study manageable, many critical historical events – including how imperialism and colonialism, the international slave trade, a great number of wars and coups, Wall Street support for the Bolshevik Revolution in Russia in 1917 and precipitation of the Great Depression in 1929, were used to advance the Elite program – are not addressed in this investigation. But for accounts of the latter two events which provide evidence consistent with the analysis offered below, see Wall Street and The Bolshevik Revolution and The Secrets of the Federal Reserve.

A Brief Economic History

Following the Neolithic revolution 12,000 years ago, agriculture allowed human settlement to supersede the hunter-gatherer economy. However, while the Neolithic revolution occurred spontaneously in several parts of the world, some of the Neolithic societies that emerged in Asia, Europe, Central America and South America resorted to increasing degrees of social control, ostensibly to achieve a variety of social and economic outcomes, including increased efficiency in food production.

Civilizations emerged just over 5,000 years ago and, utilizing this higher degree of social control, were characterized by towns or cities, efficient food production allowing a large minority of the community to be engaged in more specialized activities, a centralized bureaucracy and the practice of skilled warfare. See ‘A Critique of Human Society since the Neolithic Revolution’.

With the emergence of civilization, elites of a local nature (such as the Pharoahs of Egypt), elites with imperial reach (including Roman emperors), elites of a religious nature (such as Popes and officials of the Vatican), elites of an economic character (particularly the City of London Corporation) and elites of a ‘national’ type (especially the monarchies of Europe) progressively emerged, essentially to manage the administration associated with maintaining and expanding their realms (political, economic and/or religious).

The Peace of Westphalia in 1648 formally established the nation-state system in Europe. Enriched by the long-standing and profitable legacy of their control over local domestic populations, support for the imperial conquest of non-European lands, colonial subjugation of indigenous peoples and the international slave trade, European elites, backed by military violence, were able to impose a long series of changes over national political, economic and legal systems which facilitated the emergence of industrial capitalism in Europe in the 18th century.

These interrelated political, economic and legal changes facilitated scientific research that was increasingly geared towards utilizing new resources and technological innovation that drove the ongoing invention of machinery and the harnessing of coal-fired power to make industrial production possible.

Beyond this, and following several centuries of more and less formal versions of it, Elite political and economic imperatives drove the ‘legal’ enclosure of the Commons to force people off their land and into the poorly-paid labour force needed in the emerging industrial cities. In these cities, an ongoing series of developments in the organization of work in factories, electrification, banking, and other changes and technologies dramatically expanded the gap between rich and poor. Along with subsequently imposed changes to education and, later, healthcare, national economies and the global economy were increasingly structured to profoundly disconnect ‘ordinary’ people from their land, traditional knowledge and long-standing healthcare practices to make them dependent while dramatically reinforcing an institutional reality progressively consolidated since the dawn of human civilization: Elite control ensured that the economy perpetually redistributed wealth from those who have less to those who have more.

As noted by Adam Smith, for example, in his classic work An Inquiry into the Nature and Causes of the Wealth of Nations published in 1775: ‘All for ourselves, and nothing for other people, seems, in every age of the world, to have been the vile maxim of the masters of mankind’.

And this was exemplified, for example, by the 150-year struggle between the bankers working to establish a privately-owned central bank in the newly independent United States and those Presidents (such as Andrew Jackson and Abraham Lincoln) and members of Congress who worked tirelessly to defeat it. In fact: ‘Most of the founding fathers realized the potential dangers of banking and feared bankers’ accumulation of wealth and power.’ Why?

Having observed how the privately-owned British central bank, the Bank of England, had run up the British national debt to such an extent that Parliament had been forced to place unfair taxes on the American colonies, the founders in the US understood the evils of a privately-owned central bank, which Benjamin Franklin later claimed was the real cause of the American Revolution.

As James Madison, principal author of the US Constitution argued: ‘History records that the Money Changers used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money, and its issuance.’ Another founder, Thomas Jefferson, put it this way: ‘I sincerely believe that banking institutions are more dangerous to our liberties than standing armies. The issuing power should be taken from the banks and restored to the people to whom it properly belongs.’ As it turns out, the battle over who would get the power to issue US money raged from 1764, changing hands eight times, until the bankers’ final deceitful victory in 1913 with the establishment of the Federal Reserve System. ‘The battle over who gets to issue our money has been the pivotal issue throughout the history of the United States. Wars are fought over it. Depressions are caused to acquire it. Yet after WWI, this battle was rarely mentioned in the newspapers or history books. Why? By WWI, the Money Changers with their dominant wealth had seized control of most of the nation’s press.’ Watch The Money Masters: How International Bankers Gained Control of America (with the relevant section of the four-part transcript of the video available here: The Money Masters: Part I.)

Why the objection to a private central bank? Well, consider the formation and ownership of the inaccurately named Bank of England, established in 1694.

By the end of the C17th, England was in financial ruin: 50 years of more or less continuous wars with France and Holland had depleted it. So government officials asked the bankers for the loans necessary to pursue their political purposes. What did these bankers want in return? ‘The price was high: a government-sanctioned, privately owned bank which could issue money created out of nothing.’ It became the world’s first privately-owned central bank and, although it was deceptively called the Bank of England to make people think it was part of the government, it was not. Moreover, like any other private corporation, the Bank of England sold shares to get started. ‘The investors, whose names were never revealed, were supposed to put up 1,250,000 British pounds in gold coins, to buy their shares in the bank. But only 750,000 pounds was ever received.’ Despite that, the bank was duly chartered in 1694 and started the business of loaning out several times the money it supposedly had in reserves, all at interest.

Let me restate that for clarity: The British government legislated to create a privately-owned central bank (that is, a bank owned by a small group of wealthy individuals) that loaned out vast amounts of money it did not have so that it could make a profit by charging interest.

This practice is called ‘fractional reserve banking’ to make it sound like some sophisticated economic concept rather than a deceitful practice that, should you or I do it, we would be jailed. ‘In exchange the Bank would loan the British politicians as much of the new currency as they wanted, as long as they secured the debt by direct taxation of the British people.’ In other words, the Bank could not lose.

So, as William T. Still notes: ‘legalization of the Bank of England amounted to nothing less than the legal counterfeiting of a national currency for private gain.’

‘Unfortunately’, he goes on, ‘nearly every nation now has a privately controlled central bank, using the Bank of England as their basic model. Such is the power of these central banks, that they soon take total control over a nation’s economy. It soon amounts to nothing else than a plutocracy, rule by the rich.’ Watch The Money Masters: How International Bankers Gained Control of America (with the relevant section of the four-part transcript of the video available here: The Money Masters: Part I.)

Before proceeding, if how the banking system works isn’t your strong point, this brief video does a good job of spelling out essential points in a non-technical way. Watch ‘Banking – the Greatest Scam on Earth’.

And for a thoughtful explanation of the meaning and history of money, see Nick Szabo’s superb article  ‘Shelling Out: The Origins of Money’.

In any case, the fundamental point is simple: After 5,000 years, the various processes by which local elites, then ‘national’ elites, then international elites, and now the Global Elite have continuously asserted their control to enhance their capacity to shape how the world works and to accumulate wealth has now reached its climax. Thus we are on the brink of being herded into an Elite-controlled technocracy in which, as the World Economic Forum makes clear: By 2030 ‘You’ll Own Nothing. And You’ll Be Happy.’

So you will own nothing.

And why would you be happy about that? Because you will be a transhuman slave: an organism that no longer even owns their own mind.

Who is the Global Elite and How does it Operate?

Many authors have, directly or indirectly, addressed this question and each has come up with their own nuanced combination of wealthy individuals and families, their political connections, as well as the financial instruments and organizational structures through which their power is gained and exercised.

For the purposes of this study, I am going to define the Global Elite as those families that had acquired their vast wealth and firmly established their preeminent political and economic power in global society by the end of the 19th century. These families have thus played the central role in shaping institutions and events both before but also since that time, thus providing the framework in which other wealthy people have since emerged.

In order to perform their fundamental role in shaping the modern world to serve their purposes, this Elite has facilitated the creation of a vast network of agents – corporations, institutions, other families and individuals – who are owned and/or controlled by this Elite and act as ‘fronts’ to advance Elite interests. In any given period, the Elite families remain largely unchanged (while succeeding generations of individuals further the families’ interests) but the organizational and individual agents through which these families work vary, depending on Elite aims in the contexts it precipitates.

Let me briefly illustrate my approach by using one family – the ‘House of Rothschild’ – as a case study before moving onto a wider description of how Elite families use their wealth to shape corporations, institutions, events and people to serve their own purposes.

This example is drawn from the official Rothschild Archive and two (sometimes conflicting) Rothschild-authorized accounts of the family’s history written at different times. See The Rothschild ArchiveThe House of Rothschild – Money’s Prophets, 1798-1848 and The Rothschilds: A Family Portrait.

In addition, the account draws on sources that report neutrally on Rothschild involvement as well as some sources that are critical. These sources are cited in context below.

By the mid-18th century, the ancestors of Mayer Amschel had long been small merchants in the town ghetto of Frankfurt. But, as a Jew without a family name and before street numbering was used, Mayer was also known by the name some ancestors had used on the house sign where they once lived: Rothschild (Red Shield). With more ability than other merchants and having been sent to learn the rudiments of business in the firm of Wolf Jakob Oppenheim, he became a dealer in rare coins, medals and antiques, the buyers of which were almost invariably aristocratic collectors, including William, Hereditary Prince of Hesse-Kassel. It was this business that enabled Mayer Amschel to accumulate the capital to move into banking, a natural outgrowth of his policy of extending credit to some of his clients. His wealth started to increase rapidly as he focused more on state and merchant banking, both local and international.

With a policy of seeking little profit from interest on loans while seeking trade concessions in other areas, seeking clientele only among ‘the noblest personages in Germany’, secret bookkeeping in parallel with the official one and, later, deploying his five sons to replicate his style and activities in England (Nathan, who, after a few years in Manchester, established himself in the City of London), Paris (Jakob, known as James), Naples (Kalman, or Carl), Vienna (Salomon) as well as Frankfurt (where eldest son Amschel eventually succeeded father Mayer), the Rothschild dynasty and ‘multinational business model’ quickly established itself throughout Europe. Critically, it was serviced by the maintenance of close relationships with leading political figures and salaried agents working in financial markets who provided essential political and commercial news, as well as private communications channels (including coaches with secret compartments) that worked with enormous efficiency.

And it was this ‘Red Shield’ communication network, later operating under Royal patronage, combined with a certain audacity, that enabled the Rothschilds to profit handsomely from a variety of adverse circumstances including the restrictions on trade between England and the continent which characterized the Napoleonic period, and the Napoleonic Wars as well. This included smuggling vast amounts of contraband goods from England to the continent and transferring a substantial hoard of gold bullion through France to finance the feeding of Wellington’s army.

Most spectacularly, and despite family efforts to suppress awareness of this fact, the Rothschilds profited enormously from their privileged notice that Wellington defeated Napoleon at Waterloo in 1815, as recorded by William T. Still and Patrick S.J. Carmack in their 3.5 hour documentary The Money Masters: How International Bankers Gained Control of America (with the relevant section of the four-part transcript of the video available here: The Money Masters: Part II.)

How did this happen?

Following a long series of wars across Europe and the eastern Mediterranean, during which he was very successful, rapidly promoted and, in 1804, elected Emperor of France, Napoleon was eventually defeated. He abdicated and was exiled to Elba, an island off the Tuscan coast, in 1814 but escaped nine months later in February 1815.

As he returned to Paris, French troops were sent out to capture Napoleon but such was his charisma that ‘the soldiers rallied around their old leader and hailed him as their emperor once again.’ And, having borrowed funds to rearm, in March 1815 Napoleon’s freshly equipped army marched out to be ultimately defeated by Britain’s Duke of Wellington at Waterloo less than three months later. As Still remarks: ‘Some writers claimed Napoleon borrowed 5 million pounds from the Bank of England to rearm. But it appears these funds actually came from Ubard Banking House in Paris. Nevertheless, from about this point on, it was not unusual for privately controlled central banks to finance both sides in a war.’

‘Why would a central bank finance opposing sides in a war?’ Still asks. ‘Because war is the biggest debt generator of them all. A nation will borrow any amount for victory. The ultimate loser is loaned just enough to hold out the vain hope of victory, and the ultimate winner is given enough to win. Besides, such loans are usually conditioned upon the guarantee that the victor will honor the debts of the vanquished.’

While the outcome of the battle at Waterloo was certainly in doubt, back in London Nathan Rothschild planned to use the outcome, no matter who won or lost, to try to seize control over the British stock and bond market and possibly even the Bank of England. How did he do this? Here is one account. ‘Rothschild stationed a trusted agent, a man named Rothworth, on the north side of the battlefield, closer to the English Channel.’ Once the battle had been decided, at the cost of many thousands of French, English and other European lives, Rothworth headed immediately for the Channel. He delivered the news to Nathan Rothschild, a full 24 hours before Wellington’s own courier arrived with the news.

Rothschild hurried to the stock market and, with all eyes on him given the Rothschild’s legendary communications network was well known, others present observed Rothschild knowing that if Wellington had been defeated, and Napoleon was again at large in Europe, the British financial situation would become grave indeed. Rothschild began selling his consoles (British government bonds). ‘Other nervous investors saw that Rothschild was selling. It could only mean one thing: Napoleon must have won, Wellington must have lost.’

The market plummeted. Soon everyone was selling their own consoles and prices dropped sharply. ‘But then Rothschild started secretly buying up the consoles through his agents for only a fraction of their worth hours before.’

Fallacious? As Still concludes this recounting of the episode: ‘One hundred years later, the New York Times ran the story that Nathan Rothschild’s grandson had attempted to secure a court order to suppress a book with that stock market story in it. The Rothschild family claimed that the story was untrue and libelous. But the court denied the Rothschilds’ request and ordered the family to pay all court costs.’

In any case, having built their initial fortune using various means – some of which, as just illustrated, were neither moral nor legal – throughout the 19th century the Rothschild family continued to accumulate wealth through the international bond market, which they played a key role in developing, as well as other forms of financial business: bullion broking and refining, accepting and discounting commercial bills, direct trading in commodities, foreign exchange dealing and arbitrage, even insurance. The Rothschilds also had a select group of clients – usually royal and aristocratic individuals whom they wished to cultivate – to whom they offered a range of ‘personal banking services’ ranging from large personal loans (such as that to the Austrian Chancellor Prince Metternich) to a first class private postal service (for Queen Victoria). The family also had substantial mining interests and was a major industrial investor backing the construction of railway lines in Europe in the 1830s and 1840s. But, apart from its other interests, the family continued to be heavily involved in ‘the money trade’.

‘From 1870 onwards, London was the centre of Britain’s greatest export: money. Vast quantities of savings and earnings were gathered and invested at considerable profit through the international merchant banks of Rothschild, Baring, Lazard, and Morgan in the City’. See Hidden History: The Secret Origins of the First World War, p. 220.

But what, exactly, is the City?

The City of London Corporation, an independent square mile in the heart of London, was founded in about AD50 and quickly established itself as an important commercial centre which ultimately gave birth to some of the world’s greatest financial institutions such as the London Stock Exchange, Lloyd’s of London and, in 1694, the Bank of England. The City’s ‘modern period’ is sometimes dated from 1067.

However, as explained by Nicholas Shaxson, the City ‘is an ancient, [semi-foreign] entity lodged inside the British nation state; a “prehistoric monster which had mysteriously survived into the modern world”, as a 19th century would-be City reformer put it…. the corporation is an offshore island inside Britain, a tax haven in its own right.’ Of course, the term ‘tax haven’ is a misnomer, ‘because such places aren’t just about tax. What they sell is escape: from the laws, rules and taxes of jurisdictions elsewhere, usually with secrecy as their prime offering. The notion of elsewhere (hence the term “offshore”) is central. The Cayman Islands’ tax and secrecy laws are not designed for the benefit of the 50,000-odd Caymanians, but help wealthy people and corporations, mostly in the US and Europe, get around the rules of their own democratic societies. The outcome is one set of rules for a rich elite and another for the rest of us.’

In the words of Shaxson:

The City’s ‘elsewhere’ status in Britain stems from a simple formula: over centuries, sovereigns and governments have sought City loans, and in exchange the City has extracted privileges and freedoms from rules and laws to which the rest of Britain must submit. The City does have a noble tradition of standing up for citizens’ freedoms against despotic sovereigns, but this has morphed into freedom for money. See The tax haven in the heart of Britain.

As Gerry Docherty and Jim Macgregor explain it then, by 1870:

City influence and investments crossed national boundaries and raised funds for governments and companies across the entire world. The great investment houses made billions, their political allies and agents grew wealthy…. Edward VII, both as king and earlier as Prince of Wales, swapped friendship and honours for the generous patronage of the Rothschilds, Cassel, and other Jewish banking families like the Montagus, Hirschs and Sassoons…. The Bank of England was completely in the hands of these powerful financiers, and the relationship went unchallenged….

The flow of money into the United States during the nineteenth century advanced industrial development to the immense benefit of the millionaires it created: Rockefeller, Carnegie, Morgan, Vanderbilt and their associates. The Rothschilds represented British interests, either directly through front companies or indirectly through agencies that they controlled. Railroads, steel, shipbuilding, construction, oil and finance blossomed…. These small groups of massively rich individuals on both sides of the Atlantic knew one another well, and the Secret Elite in London initiated the very select and secretive dining club, the Pilgrims, that brought them together on a regular basis. See Hidden History: The Secret Origins of the First World War, p. 220.

To choose one example from those just listed, you can read an official account of the Rothschild family’s early involvement in oil production, including its ‘decisive influence’ in the formation of Royal Dutch Shell, in the Rothschild Archive. See Searching for Oil in Roubaix’.

Beyond their investments in the industries just listed, however, the Rothschilds had significant media interests: Their Paribas Bank ‘controlled the all-powerful news agency Havas, which in turn owned the most important advertising agency in France.’ See Hidden History: The Secret Origins of the First World War, p. 214.

And, by the late 19th century, direct Rothschild investment in major ‘armaments companies’ (now better known as weapons corporations) and related industries was substantial with official biographer Niall Ferguson candidly noting ‘If late-nineteenth-century imperialism had its “military-industrial complex” the Rothschilds were unquestionably part of it.’ See The House of Rothschild – Volume 2 – The World’s Banker, 1849-1998, p. 579.

Of course, as noted previously, the Rothschild family is not the only family that uses its wealth to exercise enormous economic and political power and to profit from war, but the evidence suggests that it has long been the most deeply entrenched in the institutions, including those it has created, that facilitate the exercise of this power. Moreover, it is linked to many other wealthy families through a multitude of arrangements as will be shown.

Consider the following examples of how the power of wealth is exercised and note the names of some other wealthy families.

Invariably working ‘in the background’, elite figures spend considerable time manipulating ‘well-positioned’ people, and none are more adept at this than the Rothschilds. To cite just one of many examples, ‘both the great estates of Balmoral and Sandringham, so intimately associated with the British royal family, were facilitated, if not entirely paid for, through the largess of the House of Rothschild’ thus maintaining the long-standing Rothschild tradition of gifting ‘loans’ – that is, bribes, as the brothers had long before privately acknowledged – to royalty (and other key officials).

Of course, this manipulation of people is done to ensure the creation of particular institutions or to precipitate or facilitate a particular sequence of events. Just one obvious example of this occurred when the British government was manipulated into the Boer War of 1899-1902 by ‘the secret society of Cecil Rhodes’ as it was originally known and of which Lord (Nathan) Rothschild was a founding member along with Alfred, later Lord, Milner who succeeded Rhodes as head of this exclusive secret club. While the British public was given a more palatable pretext for this war via the media, it was fundamentally fought to defend and consolidate the rich South African gold-mining interests of wealthy businesspeople, including the Rothschilds. By the time the war ended, the Transvaal’s gold was finally in their hands. The cost? ‘32,000 deaths in the concentration camps, [of whom more than 26,000 were women and children]; 22,000 British Empire troops were killed and 23,000 wounded. Boer casualties numbered 34,000. Africans killed amounted to 14,000.’ See Hidden History: The Secret Origins of the First World War, pp. 23 & 38-50 and The Anglo-American Establishment: From Rhodes to Cliveden.

The US Federal Reserve System

In his classic work The Creature from Jekyll Island: A Second Look at the Federal Reserve, in which he describes the formation, structure and function of the US Federal Reserve System, which governs banking in the United States, G. Edward Griffin identified the seven men and who they represented, at the secret meeting held at the private resort of J.P. Morgan on Jekyll Island off the coast of Georgia in November 1910 when the System was conceived (and later passed as The Federal Reserve Act in 1913).

The seven men at this meeting represented the great financial institutions of Wall Street and, indirectly, Europe as well: that is, they represented one-quarter of the total wealth of the entire world. They were Nelson W. Aldrich, Republican ‘whip’ in the US Senate, Chair of the National Monetary Commission and father-in-law of John D. Rockefeller Jr.; Henry P. Davison, senior partner of J.P. Morgan Company; Charles D. Norton, President of the 1st National Bank of New York; A. Piatt Andrew, Assistant Secretary of the Treasury; Frank A. Vanderlip, President of the National City Bank of New York, representing William Rockefeller; Benjamin Strong, head of J.P. Morgan’s Bankers Trust Company and later to become head of the System; and Paul M. Warburg, a partner in Kuhn, Loeb & Company, representing the Rothschilds and Warburgs in Europe.

But lest you think that there is some ‘diversity’ here, long-standing ties generated from huge financial injections at crucial times meant that several other key banks owed much to Rothschild wealth. For example, in 1857 a run on U.S. banks saw the bank Peabody, Morgan and Company in deep trouble as four other banks were driven out of business. But Peabody, Morgan and Company was saved by the Bank of England. Why? Who initiated the rescue? According to Docherty and Macgregor, ‘The Rothschilds held immense sway in the Bank of England and the most likely answer is that they intervened to save the firm. Peabody retired in 1864, and Junius Morgan inherited a strong bank with powerful links to Rothschild.’ Junius was the father of J.P. Morgan. See Hidden History: The Secret Origins of the First World War, p. 222.

A similar thing happened when Nathaniel Rothschild headed the Bank of England committee that rescued Barings Bank from imminent collapse in 1890. But other big banks ‘were beholden to or fronts for the Rothschilds…. Like J.P. Morgan, Barings and Kuhn Loeb, the M.M. Warburg Bank owed its survival and ultimate success to Rothschild money.’ To reiterate then: ‘by the early twentieth century numerous major banks, including J.P. Morgan and Barings, and armaments firms, were beholden to or fronts for the Rothschilds.’ And this had many advantages. J.P. Morgan, who was deeply involved with the Pilgrims – an exclusive club that linked major U.K. and U.S. businesspeople – was clearly perceived as an upright Protestant guardian of capitalism, who could trace his family roots to pre-Revolutionary times, so by acting in the interests of the London Rothschilds he shielded their American profits from the poison of anti-Semitism.

But the connections do not end there. Superficially, ‘there were periods of blistering competition between the investment and banking houses, the steel companies, the railroad builders and the two international goliaths of oil, Rockefeller and Rothschilds, but by the turn of the century the surviving conglomerates adopted a more subtle relationship, which avoided real competition.’ A decade earlier, Baron de Rothschild had accepted an invitation from John D. Rockefeller to meet in New York behind the closed doors of Standard Oil’s headquarters on Broadway where they had quickly reached a confidential agreement. ‘Clearly both understood the advantage of monopolistic collusion.’ The apparent rivalry between major stakeholders in banking, industry and commerce has long been a convenient facade, which they are content to leave much of the world believing. See Hidden History: The Secret Origins of the First World War, pp. 222-225.

Beyond business and financial links of this nature, of course, there is marriage. For example, according to  Dean Henderson: ‘The Warburgs, Kuhn Loebs, Goldman Sachs, Schiffs and Rothschilds have intermarried into one big happy banking family. The Warburg family… tied up with the Rothschilds in 1814 in Hamburg, while Kuhn Loeb powerhouse Jacob Schiff shared quarters with Rothschilds in 1785. Schiff immigrated to America in 1865. He joined forces with Abraham Kuhn and married Solomon Loeb’s daughter. Loeb and Kuhn married each others sisters and the Kuhn Loeb dynasty was consummated. Felix Warburg married Jacob Schiff’s daughter. Two Goldman daughters married two sons of the Sachs family, creating Goldman Sachs. In 1806 Nathan Rothschild married the oldest daughter of Levi Barent Cohen, a leading financier in London.’ See Big Oil and Their Bankers in the Persian Gulf: Four Horsemen, Eight Families and Their Global Intelligence, Narcotics and Terror Network, p. 488.

So to return to the foundation of the US Federal Reserve System, according to Griffin:

The reason for secrecy was simple. Had it been known that rival factions of the banking community had joined together, the public would have been alerted to the possibility that the bankers were plotting an agreement in restraint of trade – which, of course, is exactly what they were doing.

What emerged was a cartel agreement with five objectives:

stop the growing competition from the nation’s newer banks;

obtain a franchise to create money out of nothing for the purpose of lending;

get control of the reserves of all banks so that the more reckless ones would not be exposed to currency drains and bank runs;

get the taxpayer to pick up the cartel’s inevitable losses; and convince Congress that the purpose was to protect the public.

It was realized that the bankers would have to become partners with the politicians and that the structure of the cartel would have to be a central bank. The record shows that the Fed has failed to achieve its stated objectives. That is because those were never its true goals. As a banking cartel, and in terms of the five objectives stated above, it has been an unqualified success.

To reiterate Griffin’s key point: ‘a primary objective of that cartel was to involve the federal government as an agent for shifting the inevitable losses from the owners of those banks to the taxpayers.’ And this is confirmed by the ‘massive evidence of history since the System was created’.

Or, in the words of economics Professor Antony C. Sutton, who carefully detailed the longstanding links between Wall Street and the family of US President Franklin D. Roosevelt, including Roosevelt himself (a banker and speculator from 1921 to 1928): ‘The Federal Reserve System is a legal private monopoly of the money supply operated for the benefit of a few under the guise of protecting and promoting the public interest.’ See Wall Street and F.D.R.

And, as U.S. Congressman Louis Thomas McFadden, chairman of the House Committee on Banking and Currency, observed in 1932: ‘When the Federal Reserve Act was passed, the people of the United States did not perceive that… this country was to supply financial power to an international superstate – a superstate controlled by international bankers and international industrialists acting together to enslave the world for their own pleasure.’ See ‘Speech by Rep. Louis T. McFadden denouncing the Federal Reserve System’.

Equally importantly, creation of the Federal Reserve was just one of many preliminary steps taken over a 25-year period by a select group of men in key positions who conspired to ignite The Great War to both shape the future world order and profit enormously from the death and destruction. You can read detailed accounts of what took place, including key players, their motives and instigation of the Boer War in South Africa, touched on above, as part of the process, in books such as these:

Hidden History: The Secret Origins of the First World War,

The Anglo-American Establishment: From Rhodes to Cliveden,

The House of Rothschild – Volume 2 – The World’s Banker, 1849-1998 and

Prolonging the Agony: How the Anglo-American Establishment Deliberately Extended WWI by Three-and-a-Half Years.

There is also a thoughtful summary in ‘A crime against humanity: the Great Reset of 1914-1918’ and an excellent video on the subject: ‘The WWI Conspiracy’.

The primary cost of World War I was 20 million human lives, but it was immensely profitable for some.

The Bank for International Settlements

Another critical development in this period was the creation of the Bank for International Settlements (BIS) – as ‘the central bank of central banks’ – in 1930. As described by Professor Carroll Quigley, the BIS was the apex of efforts by elite bankers ‘to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole.’

But the push started many years before with Montagu Norman (Bank of England) and Benjamin Strong (the first governor of the Federal Reserve Bank of New York) both committed advocates. ‘In the 1920’s, they were determined to use the financial power of Britain and of the United States to force all the major countries of the world to go on the gold standard and to operate it through central banks free from all political control, with all questions of international finance to be settled by agreements by such central banks without interference from governments.’

This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent private meetings and conferences. The apex of the system was to be the Bank for International Settlements in Basle, Switzerland, a private bank owned and controlled by the world’s central banks which were themselves private corporations.

Each central bank, in the hands of men like Montagu Norman of the Bank of England, Benjamin Strong of the New York Federal Reserve Bank, Charles Rist of the Bank of France, and Hjalmar Schacht of the Reichsbank, sought to dominate its government by its ability to control Treasury loans, to manipulate foreign exchanges, to influence the level of economic activity in the country, and to influence cooperative politicians by subsequent economic rewards in the business world. The B.I.S. as a private institution was owned by the seven chief central banks and was operated by the heads of these, who together formed its governing board.

But, Quigley points out:

It must not be felt that these heads of the world’s chief central banks were themselves substantive powers in world finance. They were not. Rather, they were the technicians and agents of the dominant investment bankers of their own countries, who had raised them up and were perfectly capable of throwing them down.

The substantive financial powers of the world were in the hands of these investment bankers (also called ‘international’ or ‘merchant’ bankers) who remained largely behind the scenes in their own unincorporated private banks.

These formed a system of international cooperation and national dominance which was more private, more powerful, and more secret than that of their agents in the central banks. This dominance of investment bankers was based on their control over the flows of credit and investment funds in their own countries and throughout the world. They could dominate the financial and industrial systems of their own countries by their influence over the flow of current funds through bank loans, the discount rate, and the re-discounting of commercial debts; they could dominate governments by their control over current government loans and the play of the international exchanges. Almost all of this power was exercised by the personal influence and prestige of men who had demonstrated their ability in the past to bring off successful financial coupe, to keep their word, to remain cool in a crisis, and to share their winning opportunities with their associates. In this system the Rothschilds had been preeminent during much of the nineteenth century. See Tragedy & Hope: A History of the World in Our Time, pp. 242-3 & 245.

Ensuring that this select group of international bankers could operate without any form of accountability to any other authority in the world, the BIS ‘Headquarters Agreement with Switzerland’ Articles 4 and 12 specifically identify a range of ‘privileges and immunities’ that, among others, provide that ‘The Bank shall enjoy immunity from jurisdiction’ and ‘members of the Board of Directors of the Bank, together with the representatives of those central banks which are members of the Bank’ with ‘immunity from arrest or imprisonment’. See ‘Agreement between the Swiss Federal Council and the Bank for International Settlements to determine the Bank’s legal status in Switzerland’.

In plain language, the BIS and its members are beyond the reach of governments, key international organizations and the rule of law. They are accountable to no-one. And this is why the BIS was never held to account for its commission of war crimes. See ‘History – the BIS during the Second World War (1939-48)’. For an excellent and detailed account of the Bank for International Settlements, see Adam LeBor’s Tower of Basel: The Shadowy History of the Secret Bank that Runs the World.

Beyond this, as Sutton notes, because politicians sympathetic to financial capitalism and academics with ideas about world control are kept in line with a system of rewards and penalties, ‘in the early 1930s the guiding vehicle for this international system of financial and political control’ was the BIS, headquartered in Basle. The BIS ‘continued its work during World War II as the medium through which the bankers – who… were not at war with each other – continued a mutually beneficial exchange of ideas, information, and planning for the post-war world.’ In this sense only, the war was irrelevant to them. See Wall Street and The Rise of Hitler, pp. 11-12.

So while elite figures, including the Rothschilds, continued to shape institutions and events to restructure world order and make it more profitable for themselves, virtually everyone else in the world was an unwitting victim of their secret programs, many at the cost of their own life.

A notable exception was US Major General Smedley Butler who at least spelled out the critical role that war played in wealth creation for the elite. Following more than three decades of highly-decorated service in the US Marine Corp, Butler later described his experience in the following terms: ‘I spent most of my time being a high-class muscle man for Big Business, for Wall Street and for the bankers. In short, I was a racketeer for capitalism.’ See ‘Major General Smedley Butler’.

In his book published in 1935, he wrote:

‘War is a racket. It always has been. It is possibly the oldest, easily the most profitable, surely the most vicious…. It is the only one in which the profits are reckoned in dollars and the losses in lives…. It is conducted for the benefit of the very few, at the expense of the very many. Out of war a few people make huge fortunes.’

He went on to describe some of the individuals and corporations that made huge profits out of World War I. See War IA Racket.

World War II

And, just a few years later, World War II demonstrated that ‘war is a racket’ yet again. By carefully penetrating the cloak of deception behind which it was hidden, Professor Antony C. Sutton considered original documentation and eyewitness accounts to reveal what remains one of the most remarkable and under-reported facts of World War II. In his account of this orchestrated conflagration, Sutton carefully documents how prominent Wall Street banks and US businesses supported Hitler’s rise to power by financing and trading with Nazi Germany, reaching the unsavory conclusion that ‘the catastrophe of World War II was extremely profitable for a select group of financial insiders’ including J.P. Morgan, T.W. Lamont, the Rockefeller interests, General Electric, Standard Oil, and the National City, Chase, and Manhattan banks, Kuhn, Loeb and Company, General Motors, Ford Motor Company, and scores of others in ‘the bloodiest, most destructive war in history’. See Wall Street and The Rise of Hitler.

To illustrate the complex and wide-ranging collaboration between US business interests and the Nazis throughout the war, consider just one example: On the eve of World War II the German chemical complex of I.G. Farben, which included the banker Max Warburg (brother of Paul of the US Federal Reserve) on its Board of Directors, was the largest chemical manufacturing enterprise in the world, with extraordinary political and economic power within Hitler’s Nazi state. The Farben cartel dated from 1925 and had been created with financial assistance from Wall Street by the organizing genius of Hermann Schmitz, a prominent early Nazi who, through I.G. Farben, helped fund Hitler’s seizure of control in March 1933. Schmitz created the super-giant chemical enterprise out of six already giant German chemical companies.

So critical was I.G. Farben to the Nazi war effort that it produced 100% of its lubricating oil and various other products, 95% of its poison gas – ‘enough gas to kill 200 million humans’ – used in the extermination chambers, 84% of its explosives, 70% of its gunpowder, and very high proportions of many other critical products including aviation fuel. As Sutton concludes: ‘Without the capital supplied by Wall Street, there would have been no I.G. Farben in the first place and almost certainly no Adolf Hitler and World War II.’ See Wall Street and The Rise of Hitler, pp.17-20.

The cost in human lives of World War II was 70-85 million. But there was no cost to those Wall Street corporations and their fellow war profiteers that collaborated with Nazi Germany. Just massive profits.

Following World War II

Documenting what had become the long-standing collusion between political, corporate and military elites, sociology Professor C. Wright Mills published his classic work The Power Elite in 1956. This scholarly effort was among the earliest of the post-World War II era to document the nature of the US elite and how it functioned, highlighting the interlocking power of corporate, political and military elites as they exercised control over US national society and went about the task of exploiting the general population.

But a weakness of the account by Mills was his failure to grapple with the already long-standing power of a global elite to manipulate key events in any one country, and certainly the United States, even if much of this was done through the relevant national elite(s).

This ‘global reach’ of the Elite is again clearly apparent in any study of ownership of the world’s oil resources. In his 1975 book The Seven Sisters, Anthony Sampson popularized this collective name for the shadowy oil cartel that, throughout its history, had vigorously worked to eliminate competitors and control the world’s oil. See The Seven Sisters: The Great Oil Companies and the World They Shaped. Several decades later, Dean Henderson simply observed that ‘After a tidal wave of mergers at the turn of the millennium, Sampson’s Seven Sisters were Four Horsemen: Exxon Mobil, Chevron Texaco, BP Amoco and Royal Dutch/Shell.’ Beyond this, however, Henderson noted the following:

The oil wealth generated in the Persian Gulf region is the main source of capital [for the international mega-banks]. They sell the Gulf Cooperation Council sheiks 30-year treasury bonds at 5% interest, then loan the sheiks’ oil money out to Third World governments and Western consumers alike at 15-20% interest. In the process these financial overlords – who produce nothing of economic import – use debt as their lever in consolidating control over the global economy.

See Big Oil and Their Bankers in the Persian Gulf: Four Horsemen, Eight Families and Their Global Intelligence, Narcotics and Terror Network, pp. 168, 451.

And, following a series of mergers and then the 2008 banking crisis, four giant banks emerged to dominate the US economy: JP Morgan Chase, Citigroup, Bank of America and Wells Fargo. Moreover, these banks, along with Deutsche Bank, Banque Paribas, Barclays ‘and other European old money behemoths’, own the four oil giants and are also ‘among the top 10 stock holders of virtually every Fortune 500 corporation’ giving them vast control over the global economy.

See Big Oil and Their Bankers in the Persian Gulf: Four Horsemen, Eight Families and Their Global Intelligence, Narcotics and Terror Network, pp. 470, 473.

So who owns these banks? By now it should come as no surprise that several scholars at different times during the past 100 years have investigated this issue and come to essentially the same conclusion: the major families, increasingly interrelated by blood, marriage and/or business interests, have simply consolidated their control over the banks. Apart from scholars already mentioned above, in the 1983 revision of his book, Eustace Mullins noted that a few families still controlled the New York City banks which, in turn, hold the controlling stock of the Federal Reserve Bank of New York. Mullins identified the families of the Rothschilds, Morgans, Rockefellers, Warburgs and others.

See The Secrets of the Federal Reserve, p. 224.

Several scholars have written on the subject of elite power since Mills with Professor Peter Phillips penning the 2018 book Giants: The Global Power Elite which reviews ‘the transition from the nation state power elites described by Mills to a transnational power elite centralized on the control of global capital around the world. The Global Power Elite function as a nongovernmental network of similarly educated wealthy people with common interests of managing, facilitating, and protecting concentrated global wealth and insuring the continued growth of capital.’

Aside from the obvious criticism that Phillips effectively repeats the mistake made by Mills in assuming that there was no pre-existing ‘transnational power elite’ even if in different form, Phillips goes on to usefully identify the world’s top seventeen asset management firms, such as BlackRock and J.P Morgan Chase, that collectively manage (by now) more than $US50 trillion in a self-invested network of interlocking capital that spans the globe.

More precisely, Phillips identifies the 199 individual directors of the seventeen global financial Giants and the importance of those transnational institutions that serve a unifying function – including:

the World Bank, International Monetary Fund, G20, G7, World Trade Organization (WTO),

World Economic Forum  (WEF), Trilateral Commission,

Bilderberg Group(with a review of Daniel Estulin’s book The True Story of the Bilderberg Group here:

‘“The True Story of the Bilderberg Group” and What They May Be Planning Now’),

Bank for International Settlements and the Council on Foreign Relations

(see ‘One World Governance and the Council on Foreign Relations. “We Shall have World Government… by Conquest or Consent.”’) – and particularly two very important global elite policy-planning organizations:

the Group of Thirty (which has 32 members) and the extended executive committee of the Trilateral Commission (which has 55 members).

And Phillips carefully explains why and how the Global Elite defends its power, profits and privilege against rebellion by the ‘unruly exploited masses’: ‘the Global Power Elite uses NATO and the US military empire for its worldwide security…. The whole system continues wealth concentration for elites and expanded wretched inequality for the masses.’ Advocating the importance of systemic change and the redistribution of wealth, Phillips goes on to argue that ‘This concentration of protected wealth leads to a crisis of humanity, whereby poverty, war, starvation, mass alienation, media propaganda, and environmental devastation are reaching a species-level threat.’

Hence, it is worth reiterating: War plays an ongoing and vital role in the exercise of Elite power to reshape world order to maximize wealth concentration by the Elite. If you want further evidence of this, you might find these recent reports instructive: the US Congressional Research Service report

‘Instances of Use of United States Armed Forces Abroad, 1798-2022’,

the Tufts University Fletcher Center for Strategic Studies report ‘Military Intervention Project (MIP) Research’

and an article and video that summarize and discuss these two reports in US launched 251 military interventions since 1991, and 469 since 1798.

But, as the discussion above and below illustrates, war is not the only mechanism the Elite uses.

For an account which focuses on identifying many of the world’s largest corporations, in many industries, and then illustrates the interlocking nature of corporate ownership while demonstrating that they are all owned by the same small group of giant asset management corporations – notably including Vanguard, BlackRock and State Street – this video is very instructive: ‘Monopoly: Who Owns the World?’

And for a penetrating critique of BlackRock and its overall strategy to acquire vast worldwide control, including by using its Aladdin investment analysis technology (which employs massive data collection, artificial intelligence and machine learning to derive investment insight),

see ‘BlackRock: Bringing Together Man and Machine’

and this three-part series by James Corbett: ‘How BlackRock Conquered the World’.

In the ‘Monopoly’ video, you will again see the names of some familiar individuals and families who own significant shareholdings in these corporations and asset management firms. After showcasing families such as the Rothschilds, Rockefellers and Morgans, the narrator simply observes in relation to Vanguard that its ‘largest shareholders are the private funds and nonprofit organizations of these families’.

And if you think that national Elites in countries like China and Russia are somehow not involved in all this, you might find it interesting to read articles that discuss the wealth and political influence of the Chinese ‘immortals’ and the Russian oligarchs –

see ‘China’s red aristocracy’ and ‘List of Oligarchs and Russian elites featured in ICIJ investigations’ – or read the ‘Joint Statement of the Russian Federation and the People’s Republic of China on the International Relations Entering a New Era and the Global Sustainable Development’.

Beyond this, however, Emanuel Pastreich points out that if anyone attributes responsibility for Chinese policies in relation to data collection and control based on QR codes and contact tracing, they inevitably identify the Chinese government.

‘But the truth is that few, or none, of these policies were made up or implemented by the Chinese government itself, but rather that the Chinese government is occupied by IT corporations that report to the billionaires (often through Israel and the United States) and bypass the Chinese government altogether.’

Pastreich goes on to offer some insight into how key Elite intelligence and finance corporations are driving the technocratic social control policies being implemented under cover of the ‘virus’ in China.

See ‘The Third Opium War Part One: The agenda behind the COVID-19 assault on China’and ‘The Third Opium War Part Two: The True Threat Posed by China’ or watch ‘Western Tech & China: Who Serves whom?’

In fact, as Patrick Wood points out, referencing a much earlier book of his own and Professor Antony Sutton – see Trilaterals Over Washington Volumes I & II  – ‘Thanks to early members of the [Elite’s] Trilateral Commission, China was brought out of its dark ages Communist dictatorship and onto the world stage. Furthermore, the Trilateral Commission orchestrated and then facilitated a massive transfer of technology to China in order to build up its non-existent infrastructure….  As a failed Communist dictatorship, China was a blank slate with over 1.2 billion citizens under its control. However, Chinese leadership knew nothing about capitalism and free enterprise, and [key Trilateralist Zbigniew] Brzezinski made no effort to teach them about it. Instead, he planted seeds of Technocracy…. In the 20-year period from 1980 to 2000, a transformation took place that was considered nothing short of an economic miracle; but it was not of China’s doing. Rather, it can be fully attributed to the masters of Technocracy within the ranks of the Trilateral Commission.’ After listing several key features of China’s technocracy (5G, AI, social credit scores…), Wood concludes that ‘China is a full-blown Technocracy and it is the first of its kind on planet earth.’ See this article on China as one of Wood’s 12-part series on technocracy: ‘Day 7: China Is A Technocracy’.

And in relation to Russia,  Riley Waggaman simply observes that ‘As for “COVID-triggered” economic restructuring: the Russian government has openly embraced the World Economic Forum’s Fourth Industrial Revolution. In October [2021], the Russian government and the WEF signed a memorandum on the establishment of a Center for the Fourth Industrial Revolution in Russia.

Russia has already adopted a law allowing for “experimental legal regimes” to allow corporations and institutions to deploy AI and robots into the economy, without being encumbered by regulatory red tape. Returning to Gref and his digital Sbercoin: Russia’s central bank is already planning to test-run a digital ruble that, among other nifty features, could be used to restrict purchases.’ See ‘I believe we are facing an evil that has no equal in human history’.

Moreover, according to Mikhail Delyagin, a deputy of the State Duma of the Russian Federation: ‘In the 90s, under Yeltsin, the external management of global banksters was carried out through the IMF and through [Russian oligarch Anatoly] Chubais. Now under Putin, external management will be done by Big Tech, social global platforms, and Big Pharma through the WHO. Exactly the same management.’ Cited in ‘Duma deputy: “Protect yourself and Russia from a coup d’état!”. Russian lawmaker issues video appeal to the nation. Will anyone listen?’

Separately from this, bear in mind that the Elite, as well as its agents and organizations (including those in China and Russia), have vast wealth stashed in ‘secrecy jurisdictions’ (better known as tax havens): locations around the world where wealthy individuals, criminals and terrorists, as well as governments and government agencies (such as the CIA), banks, corporations, hedge funds, international organizations (such as the Vatican) and crime syndicates (such as the Mafia), can stash their money so that they can avoid regulation and oversight, and evade tax. Just how much wealth is stashed in tax havens? While this is impossible to know precisely, it can only be measured in tens of trillions of dollars as well as an unknown number of gold bricks, artworks, yachts and racehorses.

See ‘Elite Banking at Your Expense: How Secretive Tax Havens are Used to Steal Your Money’.

How is this possible? Well, it is protected by government legislation and legal systems, with an ‘army’ of Elite agents – accountants, auditors, bankers, businesspeople, lawyers and politicians – ensuring that they remain protected. The point here is simple: if you have enough money, the law simply does not exist. And you can evade taxes legally and in the full knowledge that your vast profits (even from immorally-acquired wealth such as sex trafficking, gun-running, endangered species trafficking, conflict diamonds and drug trafficking) are ‘lawful’ and will escape regulation and oversight of any kind. See ‘The Rule of Law: Unjust and Violent’.

But legal systems facilitate monstrous injustice in other ways too. For example, they ensure that owners of corporations are enabled to ruthlessly exploit both their workers and all taxpayers as well. For a thoughtful and straightforward account of how this works, see this article by Professor James Petras: ‘How Billionaires Become Billionaires’.

And to briefly revisit a subject discussed above: Who owns the US Federal Reserve System now?

According to Dean Henderson writing in 2010, it is ‘the Goldman Sachs, Rockefellers, Lehmans and Kuhn Loebs of New York; the Rothschilds of Paris and London; the Warburgs of Hamburg; the Lazards of Paris; and the Israel Moses Seifs of Rome.’

Henderson goes on to state that ‘The control that these banking families exert over the global economy cannot be overstated and is quite intentionally shrouded in secrecy. Their corporate media arm is quick to discredit any information exposing these money powers as halfbaked conspiracy theory. The word “conspiracy” itself has been demonized, much like the word “communism”. Anyone who dare utter the word is quickly excluded from public debate and written off as insane. Yet the facts remain.’

See Big Oil and Their Bankers in the Persian Gulf: Four Horsemen, Eight Families and Their Global Intelligence, Narcotics and Terror Network, pp. 473-4.

Other scholars in the field agree.

In his exceptionally detailed investigation into three major historical events of the C20th – the Bolshevik Revolution, the rise of Franklin D. Roosevelt and the rise of Hitler – Professor Antony Sutton identified the seat of political power in the United States not as the US Constitution authorized but ‘the financial establishment in New York: the private international bankers, more specifically the financial houses of J.P. Morgan, the Rockefeller-controlled Chase Manhattan Bank, and in earlier days (before amalgamation of their Manhattan Bank with the former Chase Bank), the Warburgs.’

For most of the twentieth century the Federal Reserve System, particularly the Federal Reserve Bank of New York (which is outside the control of Congress, unaudited and uncontrolled, with the power to print money and create credit at will), has exercised a virtual monopoly over the direction of the American economy. In foreign affairs the Council on Foreign Relations, superficially an innocent forum for academics, businessmen, and politicians, contains within its shell, perhaps unknown to many of its members, a power center that unilaterally determines U.S. foreign policy. The major objective of this submerged – and obviously subversive – foreign policy is the acquisition of markets and economic power (profits, if you will), for a small group of giant multi-nationals under the virtual control of a few banking investment houses and controlling families. See Wall Street and The Rise of Hitler, pp.125-126.

So what has changed?

Nothing has changed.

But it is not just fine scholars who have reached this conclusion. Consider David Rockefeller’s delusionary whitewashing of his own family’s key role in the killing, devastation and destruction outlined above: ‘Some even believe we are part of a secret cabal working against the best interests of the United States, characterizing my family and me as “internationalists” and of conspiring with others around the world to build a more integrated global political and economic structure – one world, if you will. If that’s the charge, I stand guilty, and I am proud of it…. one of the most enduring [conspiracies] is that a secret group of international bankers and capitalists, and their minions, control the world’s economy…. [but these people] ignore the tangible benefits that have resulted from our active international role during the past half-century’. See Memoirs, p. 483.

If you are wondering how all of this happens without any significant pushback from within elite circles, there is a simple answer: They are all insane and control to maximize resource accumulation has become the perpetual substitute for their destroyed capacity to engage emotionally in their own lives and empathize with their fellow human beings. For more detail, see ‘Love Denied: The Psychology of Materialism, Violence and War’ and ‘The Global Elite is Insane Revisited’.

So while some of us occasionally ponder how we can contribute more to improve the human condition and the state of the world, and then endeavour to do something along those lines, there are plenty of terrified people whose daily life is consumed (consciously or unconsciously) by the question ‘How can I take more?’ And people like that have been taking more since the dawn of human civilization and, no doubt, earlier.

The Global Elite is simply those who have been insanely ruthless and organized enough to take more, whatever the cost to humanity and all other life on Earth.

The Post World War II Superstructure to Transform World Order, Destroy the World Economy and Capture All Wealth

So how, precisely, is the Global Elite driving the transformation of world order, the collapse of the world economy and capturing final control of all wealth?

There are three parts to the answer to this question: 1. The foundations progressively laid over the past 5,000 years, as outlined above; 2. The superstructure (including such institutions as the United Nations, the World Bank and International Monetary Fund) that has been built since World War II and, more recently, under the guise of the United Nation’s Sustainable Development agenda, to impose global governance on the human population and, particularly, to intrude global financial governance into every aspect of our lives. In the words of Iain Davis and Whitney Webb, this is because the UN’s sustainable development goals ‘do not promote “sustainability” as most conceive it and instead utilise the same debt imperialism long used by the Anglo-American Empire to entrap nations in a new, equally predatory system of global financial governance’ – see ‘Sustainable Debt Slavery’ – and 3. The final part relates to political, economic and, especially, technological measures being imposed as part of the World Economic Forum’s ‘Great Reset’ under cover of the fake narrative about a Covid-19 ‘pandemic’.

If we briefly consider elements of the post-World War II superstructure, for example, both the World Bank and International Monetary Fund have historically used debt to force countries, mostly in the developing world, to adopt policies that redistribute wealth to the elite via their banks, corporations and institutions. But corporations have employed their own ‘economic hit men’ to do the same thing: By identifying and ‘persuading’ leaders of developing nations, using a variety of devices – ranging from false economic projections and bribes to military threats and assassinations – to accept enormous ‘development’ loans for projects which are contracted with western corporations, countries quickly become entrapped in debt. This is then used to force those countries to implement unpopular austerity policies, deregulate financial and other markets, and privatize state assets, thus eroding national sovereignty. See The New Confessions of an Economic Hit Man.

If you want to read further evidence of the role of the World Bank and the IMF as agents of Elite policy against nation-states, you might find the US Army’s manual of unconventional warfare interesting. See ‘Army Special Operations Forces: Unconventional Warfare’. Originally released by Wikileaks in 2008 and described by them as the US military’s ‘regime change handbook’, as elaborated by Webb, ‘the U.S. Army states that major global financial institutions – such as the World Bank, International Monetary Fund (IMF), the Organization for Economic Cooperation and Development (OECD) [and the Bank for International Settlements (BIS] – are used as unconventional, financial “weapons in times of conflict up to and including large-scale general war,” as well as in leveraging “the policies and cooperation of state governments.”’ See ‘Leaked Wikileaks Doc Reveals US Military Use of IMF, World Bank as “Unconventional” Weapons’.

Beyond this, however, what we have seen since the UN, increasingly a tool of corporations since the 1990s, adopted its Sustainable Development Goals is a dramatically expanded set of mechanisms designed to enslave the bulk of the human population, not just those in ‘developing’ countries, and take complete control of Earth’s ecosystems and natural processes.

Among many initiatives, for example, the Global Public-Private Partnership has been presented by Klaus Schwab and Peter Vanham, on behalf of the World Economic Forum. See Stakeholder Capitalism: A Global Economy that Works for Progress, People and Planet summarized in What is stakeholder capitalism?

While this sanitized account obscures the threat it poses to humankind, Iain Davis and Whitney Webb have thoughtfully critiqued it – see ‘Sustainable Debt Slavery’ – noting that even a 2016 UN Department of Economic and Social Affairs report – see ‘Public-Private Partnerships and the 2030 Agenda for Sustainable Development: Fit for purpose?’ – also found it ‘unfit for purpose’. So what is it? According to Davis, the Global Public-Private Partnership (G3P) is a worldwide network of stakeholder capitalists and their partners: the Bank for International Settlements, central banks, global (including media) corporations, the ‘philanthropic’ foundations of multi-billionaires, policy think tanks, governments (and their agencies), key non-governmental organizations and global charities, selected academic and scientific institutions, labour unions and other chosen ‘thought leaders’. (You can see an instructive diagram in the article cited below.)

The G3P controls the world economy and global finance. ‘It sets world, national and local policy (via global governance) and then promotes those policies using the mainstream media’, typically distributes the policies through an intermediary such as the IMF, WHO or IPCC and uses governments to transform G3P global governance into hard policy, legislation and law at the national level. ‘In this way, the G3P controls many nations at once without having to resort to legislation. This has the added advantage of making any legal challenge to the decisions made by the most senior partners in the G3P (an authoritarian hierarchy) extremely difficult.’ In short: global governance has already superseded the national sovereignty of states: ‘National governments had been relegated to creating the G3P’s enabling environment by taxing the public and increasing government borrowing debt.’ See ‘What Is the Global Public-Private Partnership?’

As Davis notes: We are supposed to believe that a G3P-led system of global governance is beneficial for us and to accept that global corporations are committed to putting humanitarian and environmental causes before profit, when the conflict of interest is obvious. ‘Believing this requires a considerable degree of naïveté.’ Davis clearly perceives ‘an emergent global, corporate dictatorship that cares not one whit about truly stewarding the planet. The G3P will determine the future state of global relations, the direction of national economies, the priorities of societies, the nature of business models and the management of a global commons. There is no opportunity for any of us to participate in either their project or the subsequent formation of policy.’ Davis goes on: ‘in theory, governments do not have to implement G3P policy, in reality they do. Global policies have been an increasing facet of our lives in the post-WW2 era…. It doesn’t matter who you elect, the policy trajectory is set at the global governance level. This is the dictatorial nature of the G3P and nothing could be less democratic.’

Another initiative was launched at the COP26 conference in November 2021. The Glasgow Financial Alliance for Net Zero (GFANZ) is an industry-led and UN-convened alliance of private banking and financial institutions that announced plans to overhaul the role of global and regional financial institutions, including the World Bank and IMF, as part of a broader plan to ‘transform’ the global financial system. See ‘Our progress and plan towards a net-zero global economy’.

But this report makes it clear that GFANZ will simply employ the same exploitative tactics that the ‘economic hitmen’ and agents such as the multilateral ‘development’ banks (MDBs) – including the World Bank, Inter-American Development Bank, Asian Development Bank, the African Development Bank and the European Bank for Reconstruction and Development – have long used to force even greater deregulation on ‘developing’ countries to facilitate supposedly climate and environmentally-friendly investments by alliance members. In fact, composed of several “subsector alliances”, including the Net Zero Asset Managers Initiative, the Net Zero Asset Owner Alliance and the Net Zero Banking Alliance, GFANZ commands ‘a formidable part of global private banking and finance interests’. Moreover, the ‘largest financial players’ who dominate GFANZ include the CEOs of BlackRock, Citi, Bank of America, Banco Santander and HSBC as well as the CEO of the London Stock Exchange Group and chair of the Investment Committee of the David Rockefeller Fund. In essence then, as Whitney Webb goes on to explain it:

[T]hrough the proposed increase in private-sector involvement in MDBs, such as the World Bank and regional development banks, alliance members seek to use MDBs to globally impose massive and extensive deregulation on developing countries by using the decarbonization push as justification. No longer must MDBs entrap developing nations in debt to force policies that benefit foreign and multinational private-sector entities, as climate change-related justifications can now be used for the same ends….

Though GFANZ has cloaked itself in lofty rhetoric of ‘saving the planet,’ its plans ultimately amount to a corporate-led coup that will make the global financial system even more corrupt and predatory and further reduce the sovereignty of national governments in the developing world. See ‘UN-Backed Banker Alliance Announces “Green” Plan to Transform the Global Financial System’.

But, again, it is not just their fellow human beings over whom the Elite wants total control. They want that control over nature too, and that is yet another project in which the Elite has been long engaged.

Hence, in September 2021, the New York Stock Exchange (NYSE) announced the launch of a new asset class, jointly developed with Intrinsic Exchange Group (IEG) – whose founding investors included the Inter-American Development Bank and the Rockefeller Foundation – for Natural Asset Companies: ‘sustainable enterprises that hold the rights to ecosystem services’ that enable natural asset owners ‘to convert nature’s value into financial capital, providing additional resources necessary to power a sustainable future’.

According to the IEG: ‘Natural areas, underpinned by biodiversity, are inherently valuable in and of themselves.’ See ‘Natural Areas’. Either unaware of their ignorance or, perhaps, making hypocritically tokenistic use of some key words often-expressed by indigenous peoples and deep ecologists (including the inventor of the term ‘deep ecology’, Professor Arne Naess, in his 1973 article ‘The Shallow and the Deep, Long-Range Ecology Movement’) – the IEG goes on to express this ‘value’ in strictly economic terms: ‘They also contribute life supporting services upon which humanity and the global economy depends. These include provisioning services such as food, water, timber, and genetic resources; regulating services that affect climate, floods, disease, and water quality; cultural services that provide recreational, aesthetic, and spiritual benefits; and supporting services such as soil formation, photosynthesis, and nutrient cycling.’

And in its report on this subject, the World Economic Forum’s Global Future Council on Nature-Based Solutions urged investors, corporations and governments ‘to create and strengthen market-based mechanisms for valuing nature.’ See ‘Scaling Investments in Nature: The Next Critical Frontier for Private Sector Leadership’, p.14.

Elaborating the IEG’s delusional conception of how further business investment in natural resources will work, Douglas Eger, the CEO of IEG, suggests that ‘This new asset class on the NYSE will create a virtuous cycle of investment in nature that will help finance sustainable development for communities, companies and countries.’ Really? I wonder how. But IEG’s motives are more likely revealed in this fact: ‘The asset class was developed to enable exposure to the opportunities created by the estimated $125 trillion annual global ecosystem services market, encompassing areas such as carbon sequestration, biodiversity and clean water.’

See ‘NYSE to List New “Natural Asset Companies” Asset Class, Targeting Massive Opportunity in Ecosystem Services’.

Hence, to clarify: corporations are now engaged in the largest land and resource grab in history. This will enable Elite corporations to privately own the ecosystem services of a pristine rainforest, a majestic waterfall plunging into a lagoon, an expansive grassland, a picturesque cave, a magnificent wetland, a trout-filled lake, a beautiful coral reef or other natural area and then sell clean air, fresh water, pollination services, food, medicines, and a range of biodiversity services such as the enjoyment of nature, while displacing the world’s remaining indigenous populations.

So what about the Commons? ‘The Commons is property shared by all, inclusive of natural products like air, water, and a habitable planet, forests, fisheries, groundwater, wetlands, pastures, the atmosphere, the high seas, Antarctica, outer space, caves, all part of ecosystems of the planet.’ Or are corporations finally about to own the Commons as well? See ‘Mother Nature, Inc.’

Are we to reduce everything in nature to its value as a profit-making commodity?

As Robert Hunziker concludes his own critique of this initiative: ‘The sad truth is Mother Nature, Inc. will lead to extinction of The Commons, as an institution, in the biggest heist of all time. Surely, private ownership of nature is unseemly and certainly begs a much bigger relevant question that goes to the heart of the matter, to wit: Should nature’s ecosystems, which benefit society at large, be monetized for the direct benefit of the few?’ See ‘Mother Nature, Inc.’

More could be written about this, as Webb, for example, has done in ‘Wall Street’s Takeover of Nature Advances with Launch of New Asset Class’.

But if you believe that corporations – extensively documented to destroy pristine natural environments in their rapacious efforts to exploit fossil fuels, minerals, rainforest products and a vast range of other products, as well as force indigenous peoples off their land to do so: see, for example, ‘Seven (of Hundreds) Environmental Nightmares Created by Open Pit Mines (and the Obligatory Tailings Ponds) that have Caused Irremediable, Highly Toxic Contamination Downstream’ – are about to become ‘virtuous investors’ in nature when 4 billion years of Earth’s history and 200,000 years of indigenous people living harmoniously with nature have an impeccable record of preserving ecosystems and their services, without the involvement of these ‘virtuous investors’, then you will do extremely well on any gullibility test you attempt.

In Part 2 of this investigation, I will examine how the Global Elite is implementing its final coup to take complete technocratic control over all life on Earth and what we must do to prevent this happening.

I thank Anita McKone for thoughtful suggestions to improve the original draft of this investigation.

Robert J. Burrowes has a lifetime commitment to understanding and ending human violence. He has done extensive research since 1966 in an effort to understand why human beings are violent and has been a nonviolent activist since 1981. He is the author of ‘Why Violence?’ His email address is flametree@riseup.net and his website is here. He is a regular contributor to Global Research.

War Without End

What is wrong with the United States of America?

By Philip Giraldi

Source: The Unz Review

Prussian Major General Carl von Clausewitz famously drew on his own experience in the Napoleonic Wars to examine war as a political phenomenon. In his 1832 book “On War” he provided a frequently quoted pithy summary of war versus peace, writing in terms of politico-military strategy that “War is a mere continuation of politics by other means.” In other words, war-making is a tool provided to statesmen to achieve a nation’s political objectives when all else fails.

One can reject the ultimate amorality of Clausewitz’s thinking about war while also recognizing that some nations have historically speaking exploited war-making as a tool for physical expansion and the appropriation of foreigners’ resources. As far back as the Roman Republic, the country’s elected leaders doubled as heads of its consular armies, which were expected to go out each spring to expand the imperium. More recently, Britain notably engaged in almost constant colonial wars over the course of centuries to establish what was to become history’s largest empire.

America’s dominant neocons characteristically believe they have inherited the mantle of empire and of the war powers that go hand-in-hand with that attribute, but they have avoided other aspects of the transition in turning the United States into a nation made and empowered by war. First of all, what comes out the other end after one has initiated hostilities with another country is unpredictable. Starting with Korea and continuing with Vietnam, Afghanistan, Iraq as well as other minor operations in Latin America, Africa and Asia, American war-making has brought nothing but grief on those on the receiving end with little positive to show for the death, destruction and accumulated debt. Also forgotten in the rush to use force is the raison d’etre to have a federal national government at all, which is to bring tangible benefit to the American people. There has been none of that since 9/11 and even before, while Washington’s hard-line stance on what has become a proxy war against Russia over Ukraine promises more pain – perhaps disastrously so – and no real gain.

If one has any doubt that going to war has become the principal function of both Democrats and Republicans in Washington, it is only necessary to consider several stories that have appeared in the past several weeks. The first comes from the Republican side, and it includes a possibly positive development. House Minority leader Republican Kevin McCarthy warned two weeks ago that the GOP will not necessarily continue to write a “blank check” for Ukraine if they obtain the House majority in next month’s election, reflecting his party’s growing skepticism about unlimited financial support for the corrupt regime in place in Kiev. McCarthy explained “I think people are gonna be sitting in a recession and they’re not going to write a blank check to Ukraine. They just won’t do it. … It’s not a free blank check.”

America’s uncritical support for Ukraine, which has been a contrivance by the White House and media since the fighting started, has led to a growing number of Republicans, particularly some of those aligned with Donald Trump’s “America First” approach, to challenge the need for massive federal spending abroad at a time of record-high inflation at home. Since Russia launched its invasion in February, Congress has approved tens of billions in emergency security and humanitarian assistance for Ukraine, while the Biden administration has shipped billions more worth of weapons and equipment from military inventories, all done with only limited or even no oversight of where the money and weapons are winding up.

But, unfortunately, the GOP is far from unified on its approach to Ukraine-Russia. Congressman Liz Cheney demonstrated that her apple did not fall far from her father’s tree, taking some time off from trying to hang Donald Trump to denounce what she refers to as the “Putin wing of the Republican Party.” She put it this way: “You know, the Republican Party is the party of Reagan, the party that essentially won the Cold War. And you look now at what I think is really a growing Putin wing of the Republican Party.”

Cheney criticized Fox News for “running propaganda” on the issue and in particular called out Fox host Tucker Carlson as “the biggest propagandist for Putin on that network… You really have to ask yourself, whose side is Fox on in this battle? And how could it be that you have a wing of the Republican Party that thinks that America would be standing with Putin as he conducts that brutal invasion of Ukraine?”

Cheney notably did not address the issue of how the war developed in the first place because the US and UK preferred saber rattling to diplomacy with Moscow. Or why the United States feels compelled to tip-toe to the brink of a possible nuclear war over a foreign policy issue that is of no real national interest to the American people. And where did she make her comments? At the McCain Institute in Arizona. Yes, that’s a legacy of Senator John McCain another Republican who never saw a war he couldn’t enthusiastically support.

Both President Joe Biden and Speaker of the House Nancy Pelosi have confirmed that the US is in with Ukraine until “victory” is obtained, whatever that is supposed to mean, while other Administration officials have indicated that the actual purpose of the fighting is to weaken Russia and remove President Putin. White House press secretary Karine Jean-Pierre glibly spouted the party line when asked about McCarthy’s comments. She thanked congressional leaders for bipartisan work to “support Ukraine to defend itself from Russia’s war crimes and atrocities,” adding that “We will continue to work with Congress and continue to monitor those conversations on these efforts and support Ukraine as long as it takes. We are going to keep that promise that we’re making to the brave Ukrainians who are fighting every day, to fight for their freedom and their democracy.”

Perhaps more bizarre than Cheney’s comments is the tale of a letter that was prepared by thirty Democratic Party progressives urging US support for negotiations to end the fighting in Ukraine. The letter was prepared in June but not released until last week before being quickly retracted under pressure on the following day. Pramila Jayapal, who heads the Congressional Progressive Caucus, said it was retracted because it “was being conflated with [the] comments” made by McCarthy over his warning about budget cutting for Ukraine. Jayapal referred to the letter as a “distraction,” but what she really meant was that her group had no desire to make common cause with the Republicans over any issue, including war and peace in an escalating conflict that is manifestly pointless.

A clueless Jayapal also took pains to contradict the message put out by her own group, emphasizing that there has been no opposition to the administration’s Ukraine policy from Democrats in Congress. She said Democrats “have strongly and unanimously supported and voted for every package of military, strategic, and economic assistance to the Ukrainian people.” She doubled down on the White House message, affirming that the war in Ukraine will only end with diplomacy after “a Ukrainian victory.”

So basically, anyone talking sense about Ukraine in Washington is being shut down by forces within the political parties themselves working together with a compliant national media that is mis-representing everything that is taking place on the ground. It is a formula for tragedy as the Biden administration has shown no sign of seeking diplomacy with Russia to end the conflict despite the president’s recent surprising warning that the world is now facing the highest risk of nuclear “Armageddon,” which he, of course, blames on Putin. Given all of that, in my humble opinion a government that is unable or unwilling to take reasonable steps to protect its own citizens while also avoiding a possible nuclear catastrophe that could end up engulfing the entire world is fundamentally evil and has lost all legitimacy. It should recognize that fact before submitting its resignation.

The 500 Years Old WESTERN HEGEMONY is Coming to an END and the World is about to ENTER a VERY DANGEROUS PERIOD

For 500 years the world has been run from Europe or the US: that’s about to change and nobody is sure what its replacement will look like

By Timofey Bordachev

Source: The 21st Century

The most dramatic and unique aspect of the current state of affairs in international politics is that we cannot count on the ability of a single state, or a group of sufficiently powerful countries, to play a leadership role in the future.

This means it is difficult for us to imagine who will be able to force states to comply with the rules of conduct in their foreign policy, and how such strictures can even be enforced.

Indeed, the question of why individuals, or in this case countries, should abide by regulations is the most fundamental one in political philosophy.

And despite all the imperfections of the power method, humanity has not yet invented any other way of achieving such goals, even in minimal amounts, other than by force.

Over the last 500 years, the rules of international communication have been created within the narrow community of Western countries, first in Europe, before in the 20th century the US joined in, providing the power needed to enforce the system.

At first, this was done through the balance of power of leading European states, joined by Russia in 1762.

After the international order that had emerged in the mid-17th century came under attack from revolutionary France, control of the rules became a matter for a small group of major empires.

They, led by Russia and Britain, defeated Napoleon and in 1815 created an order which had at its heart a general agreement that mutiny in international affairs was unacceptable.

By the end of the nineteenth century, politics had become global, but the European powers, including Russia, could still control the rest through brute force and their colossal military-industrial superiority.

The dramatic events of 1914-1945 brought the US to the forefront of global politics, as the leader of the Western community on a global scale.

International institutions, starting with the United Nations, were established with the primary objective of preserving the monopoly position of the West.

This, however, required the emergence of formal institutions of justice in the form of international law, or the participation in the highest UN body, the Security Council, of the Soviet Union and China, which were inherently hostile to US and Western European interests.

The institutional form of Western power dominance has become overbearing and the main question now is whether it can be preserved.

Therefore, the collapse of US and Western European power positions in international politics entails not just a change of leadership, but a revision of the existing institutions and rules at the global level.

In other words, the entire formal international order that has emerged after World War II (and in reality over the last few centuries) will cease to exist.

It was based on a special system of rights and privileges for a limited group of great powers, and later the illusion of fairness of which was created by international institutions led by the UN.

It was this system that played the role of the main legitimizing principle of the existing world order, although in practice it was often replaced by the West’s ability to exert a decisive influence on world affairs

Thus, the collapse of international political institutions will very probably prove to be a consequence of the disappearance of their power base, whose presence has been unchallenged for several centuries.

We are now witnessing the destruction of both the formal and the real basis of the international order. In all likelihood, this process can no longer be stopped.

The coming period will be a time of defining the new global power base, and it is difficult to say yet which players, and to what extent, will become part of it.

What is important is that the top states of the present time – the US, Russia, China and India – are not close to each other, especially in terms of values and understanding of the basic principles of international rules.

The greatest problem so far is the behaviour of the US and certain Western European countries, which, for internal reasons, are pursuing an aggressive policy towards the outside world.

These states have embarked on a very troubling path of qualitative changes in the basic things that make up the social, gender and, consequently, political structures of society. For most other civilizations, this path is a challenge and will be rejected.

We also do not know the extent to which the internal development of the West depends on the spread of its ideals, as it did in previous periods.

In the event that the trends emerging in the West will, like revolutionary France, the Bolshevik regime or Nazi Germany, demand not just recognition from others, but expansion globally, the future will become very worrying.

We can already see that the conflict between the values favored by the West and the foundations of domestic legitimacy in a number of countries, is becoming a ground for aggravated political relations.

It would, however, be a mistake to hope that the other great and middle powers confronting the West are completely united in their understanding of the foundations of justice at the domestic level.

Even if Russia, India, China or Brazil now demonstrate a common understanding of the basic principles of a “proper” world order, this does not mean that they have the same vision of a better domestic order.

This is all the more true of the states of the Islamic world and other major developing countries. Their conservative values are often in conflict with those of the West, but this does not mean that they can create unity between themselves.

In other words, the new international order will, for the first time, be without a reliable link with the domestic ambitions of the leading powers, and this is indeed a qualitative change compared to all the historical eras we discussed.

Such a phenomenon seems very important because we have no experience of understanding how relations between states will develop under such conditions.

Brute force could become the only relatively tangible basis to assert the order, but this may not be enough to make the conditions imposed by it sustainable, even in the short term.

Another unique feature of today’s revolutionary situation is that the revision of the international order is not being carried out by one or a few powers – it has now become the business of the world’s majority.

The countries that make up about 85% of the world’s population are in one way or another no longer prepared to live with conditions created without their direct involvement.

That said, their resistance is often expressed without direct intention and depends on the power capabilities of the particular power.

What from the point of view of Russia or Iran looks like lack of resolve in dealing with the US may seem like a great challenge for Kazakhstan or another young sovereign country – after all, their entire socio-economic system was created to exploit a liberal world order.

The fragile states of Africa, or the former Soviet space, are far less capable of behaving consistently than the prosperous monarchies of the Persian Gulf. China, though now the second most powerful economic power, is also aware of its weaknesses.

But all this does not change the most important thing – even if the destruction of the existing status quo takes the form of soft sabotage rather than decisive military action, it does not simply reflect a general discontent with Western authoritarianism, but creates a new order, and the basic features of this are as yet undetermined.

In the coming years, most countries in the world will seek to make the most of the weakening of the power base of international politics in their self-interest.

So far, these actions constitute a constructive conflict, since they objectively undermine a system based on fantastic injustice.

However, as time goes on the US-EU bloc will weaken and lock itself away, and Russia or China will never be strong enough to take their place.

And in the perspective of the next 10 to 15 years, the international community will face the problem of replacing the power monopoly of the West with new universal instruments of coercion, the nature and content of which are still unknown to us.

The US-Nazi Connection since World War II: From Inspiring the Third Reich to Supporting the Neo-Nazis of Ukraine

By Timothy Alexander Guzman

Source: Silent Crow News

The mafia in Washington, London, Brussels and Tel Aviv would do anything to keep their “Unipolar World Order” project in place, in fact, there are getting desperate to hold on to whatever remaining powers they have left even if it means collaborating with its worst enemies. There is a well-known ancient proverb “The enemy of my enemy is my friend” that rings true today especially since Washington, the CIA, the Military-Industrial Complex, along with Mossad and NATO have supported well-known terrorists including the Islamic State (ISIS), Al Qaeda, and other groups to overthrow governments they don’t approve of especially in the Middle East. However, their support of terrorists who were their enemies at one time or another did not start with their regime change wars against Syria or Libya, the idea of supporting its enemies began during and after World War II when the US government recruited Ukrainian Nazis to counter their new enemy, the Soviet Union. What a strange turn of events knowing that the Soviets who fought the Nazis with their American and European allies during the war were seen as a new threat. Washington and the rest of their mafia cohorts used the Nazis back then as they are now using jihadi terrorists today in their war for world domination no matter what the costs are in the long-term.

So who were the Nazis and why was Washington interested in recruiting them in the first place? For starters, the Nazis had members involved in several scientific and technological disciplines that the US government was interested in and would later utilize them to produce all sorts of weapons of war and psychological operations for its future military operations, but we will get into further details shortly. However, the Nazis did follow a far-right fascist ideology that was authoritarian that coincided with ultranationalist principals that rejected anarchy, communism, democracy, republicanism, socialism and other forms of government that was seen as a threat to their rising power. And as insane as this sounds, the Nazis also used scientific racism, or what we can call eugenics to manipulate human gene pools by separating certain groups of people between those who are considered inferior to advancing those who were deemed superior.  Then there is the element of antisemitism that was prevalent within the Third Reich. Nazism has led to genocide, torture, forced sterilizations, imprisonment of its opposition, deportations and other atrocities among those who did not fit the profile of being an ultra-nationalist especially if you did not have the racial qualities that they demanded for their movement. 

If we look back into the history of fascism, its roots were based in Europe as historians have claimed that Louis-Napoléon Bonaparte ‘aka’ Napoleon III who ruled France with an iron fist from 1848 to 1852 had the elements of a fascist/Nazi state. 

America’s Extermination of Red Savages was Adolf Hitler’s Inspiration 

Adolf Hitler, Germany’s new chancellor took the lead in imposing fascist policies in his country when he came to power. Hitler’s allies also known as the Axis Alliance, Benito Mussolini of Italy and Hirohito of Imperial Japan had similar policies.   

So, what inspired this sort of ideology?  Where did the Nazis get their inspiration from?  It’s a known fact that Adolf Hitler admired America’s ways of dealing with certain groups in their short history from the Jim Crow laws against African Americans to the indigenous populations who were sent to prison camps during the American Indian wars.  John Toland’s ‘Adolf Hitler: The Definitive Biography’ states that “Hitler’s concept of concentration camps as well as the practicality of genocide owed much, so he claimed, to his studies of English and United States history,” and that “He admired the camps for Boer prisoners in South Africa and for the Indians in the wild west; and often praised to his inner circle the efficiency of America’s extermination—by starvation and uneven combat—of the red savages who could not be tamed by captivity.”  So, when did the idea of a ‘concentration camp’ came into effect? It was under US President and Democrat, Andrew Jackson who introduced “emigration depots” as part of his Indian Removal Act of 1830 where tens of thousands of Indigenous peoples who were forced into what was called ‘prison camps’ and they included the Seminoles, Cherokee, Choctaw, Muscogee, and other tribal nations mainly in the Southern part of the United States and that included Alabama and Tennessee. 

One other element of how the US model of governance that influenced Nazi Germany was the Jim Crow Laws.  James Q. Whitman, a legal scholar and author of ‘Hitler’s American Model: The United States and the Making of Nazi Race Law’ wrote an introduction on how the Nazis viewed American race laws:

In the opening minutes, Justice Minister Gurtner presented a memo on American race law, which had been carefully prepared by officials of the ministry for purposes of the gathering; and the participants returned repeatedly to the American models of racist legislation in the course of their discussions.  It is particularly startling to discover that the most radical Nazis present were the most ardent champions of the lessons that American approaches held for Germany.  Not, as we shall see, in this transcript the only record of Nazi engagement with American race law.  In the late 1920’s and early 1930’s many Nazis, not least Hitler himself, took a serious in the racist legislation of the United States.  Indeed in Mein Kampf Hitler praised America as nothing less than “the one state” that had made progress toward the creation of a healthy racist order of the kind the Nuremberg Laws were intended to establish. 

My purpose is to chronicle this neglected history of Nazi efforts to mine American race law for inspiration during the making of the Nuremberg Laws, and to ask what it tells us about Nazi Germany, about the modern history of racism, and especially about America     

The Nazis saw US race laws as a suitable policy that they can implement on various groups such as the Jews who were a wealthy and powerful class of people which many Germans despised at the time, became non-citizens.  Native Americans, Filipinos, African Americans, and others were also considered non-citizens even if they lived in the US or its colonized territories.  But there was one aspect of US race laws that interested the Nazis and that was the anti-miscegenation laws that prohibited interracial marriages in about 30 US states where those who broke the law in the US received a severe criminal punishment.  US-inspired race laws were imposed on German society with the establishment of the Nuremberg laws that was passed on September 15th, 1935.  

Operation Paperclip: Why the US Government Recruited Nazis After WWII

The rumor of a nuclear war is more prevalent today more than ever before since Russia’s invasion of Ukraine has taken place.  Ukraine’s actor, oh, excuse me, I meant President, Volodymyr Zelensky has called for “preventive strikes” to deter Russia from using nuclear weapons although he backtracked the claims shortly after, but he did call for for the West to hit Russia with nuclear weapons for preventative measures which was extremely dangerous rhetoric coming out of his mouth.  Speaking of nuclear weapons, do you know who originally proposed the idea of placing nuclear bombs on ballistic missiles in the first place?  It was an idea that was derived from Nazi rocket scientists who was hired by the US government during World War II.  The original program was called Uranprojekt or the “Uranium Project” for the purpose of developing nuclear technology to build weapons and reactors.  

In the last years of World War II, US intelligence agencies and the Military-Industrial Complex secretly transferred more than 1,600 Nazi scientists and their families from Germany who were experts in various fields that included rocket science, aerodynamics, chemical weapons, and medicine in what was called Operation Paperclip.  There were Nazis working for the US military who also prepared intelligence briefs creating fear and panic that the Soviets were going to take over the world which was over-exaggerated.  But what the US government feared most was that the Soviet Union under Operation Osoaviakhim with more than 2,500 former Nazi scientists and engineers who were recruited in the Soviet occupation zone of Germany (SBZ) and the Soviet sector of Berlin would be one step ahead of the US government in weapons development and other areas. 

One important historical fact about America’s Nazi Scientists was the recruitment of Wernher von Braun or known by his full name as Wernher Magnus Maximilian Freiherr von Braun who was a member of the Nazi Party and the Allgemeine SS or the “General SS” which was a major branch of Nazi Germany’s paramilitary forces.  Wernher von Braun was also the head of developing rocket technology who is considered the pioneer of rocket and space technology in the US.  He was also the chief architect of the Saturn V super heavy-lift launch vehicle that allegedly helped launch the Apollo spacecraft to the Moon.  

Nazi scientists also helped the US government and the CIA develop chemical and biological weapons programs that included the use of sarin gas and other dangerous weapons of war including VX (nerve agent) and of course, the most used biological weapon during the Vietnam war, Agent Orange.  So, in other words, the US government hired Nazi scientists for their knowledge of creating weapons of mass destruction that has inflicted damage on various populations around the world since then.  During the Vietnam war, the US military unleashed Agent Orange on the Vietnamese population causing more than 3 million people to develop birth defects and other health related problems to this day.  The Nazi scientists were indeed evil geniuses when it came to developing advanced weapons of war and that was something that the US military and the intelligence community were solely interested in and that was and still is a scary thought.      

America’s Frankenstein: The Neo-Nazis of Ukraine

As we know from the valuable lessons of history that the US government and the CIA had supported and trained Ukrainian Nazis since 1946.  The CIA had organized “Stay Behind” operations with the OUN-B (neo-Nazi Organization of Ukrainian Nationalists) in Eastern Europe and other areas to assist Ukrainian nationalist who were sent to destabilize Soviet Ukraine with covert operations such as using commandos to assassinate Soviet officials, to sabotage infrastructure and to commit acts of terrorism. 

The history of the US government and its CIA operatives shows that it supported Ukrainian war criminal Stephan Bandera to advance the Ukrainian underground movement to destabilize Soviet Ukraine, so the CIA and their Office of Policy Coordination (OPC) and the Office of Special Operations (OSO) planned covert operations with the OUN-B and provided support to the anti-Soviet Ukraine Insurgent Army (UPA) for psychological warfare within the Soviet sphere of influence.   The CIA declassified their historical account of their association with Ukrainian Nationalists who collaborated with the Nazis during the Cold War in ‘Cold War Allies: The Origins of CIA’s Relationship with Ukrainian Nationalists’ by Kevin C Ruffner detailed how the “CIA reestablished and expanded its contacts with the Ukrainians and others for covert action against the Communists and as wartime assets to be used behind Red Army lines as guerrillas, saboteurs, and resistance leaders.”  The historical account went further and stated that “The sometimes brutal war record of many emigre groups became blurred as they became more critical to the CIA.”

Fast forward to November 2013 were there were large-scale protests which was known as the Euromaidan against the policies of President Victor Yanukovych who made the decision to have closer ties with Russia and the Eurasian Economic Union instead of proceeding with the idea of having a political and economic relationship with the European Union by rejecting their free-trade agreement.  Then in February 2014, what is known as the Maidan Revolution took place that ended up in violent clashes between the protesters and the government’s security forces in the Ukrainian capital, Kyiv which led to a coup against the democratically elected president, Viktor Yanukovych.  Soon after, the Russo-Ukrainian war began and the birth of the Neo-Nazi inspired Azov Battalion was established as they became the resistance against basically, anything Russian.   

On January 22nd of this year, Yahoo News who is part of the mainstream media published an article titled CIA-trained Ukrainian paramilitaries may take central role if Russia invades basically admitted that the CIA was secretly training Ukrainian forces since 2015:

While the covert program, run by paramilitaries working for the CIA’s Ground Branch — now officially known as Ground Department — was established by the Obama administration after Russia’s invasion and annexation of Crimea in 2014, and expanded under the Trump administration, the Biden administration has further augmented it, said a former senior intelligence official in touch with colleagues in government

According to Yahoo News, an unnamed former senior intelligence official said that “If the Russians invade, those [graduates of the CIA programs] are going to be your militia, your insurgent leaders,” and that “we’ve been training these guys now for eight years. They’re really good fighters. That’s where the agency’s program could have a serious impact.”  One must wonder how many were actually radicalized neo-Nazis. 

In 2018, Reuters published a commentary by Josh Cohen ‘Ukraine’s neo-Nazi problem’ that explains Ukraine’s problem with the Nazis filling the ranks of its National Militia.  Cohen said that in “a January 28 demonstration, in Kiev, by 600 members of the so-called “National Militia,” a newly-formed ultranationalist group that vows “to use force to establish order,” illustrates this threat.”  Cohen added that the National Militia has recruited members from the Nazi-affiliated Azov Battalion:

Many of the National Militia’s members come from the Azov movement, one of the 30-odd privately-funded “volunteer battalions” that, in the early days of the war, helped the regular army to defend Ukrainian territory against Russia’s separatist proxies. Although Azov uses Nazi-era symbolism and recruits neo-Nazis into its ranks, a recent article in Foreign Affairs downplayed any risks the group might pose, pointing out that, like other volunteer militias, Azov has been “reined in” through its integration into Ukraine’s armed forces. While it’s true that private militias no longer rule the battlefront, it’s the home front that Kiev needs to worry about now

Cohen obviously is following the mainstream media narrative when he said that Putin seized Crimea which in fact, it was the Russian-speaking Crimean people who voted in a referendum to reunite with the Russian federation.  But to his credit, Cohen does mention the fact that the Azov Battalion and the Right Sector are held in high-regards since they fought Russian-backed separatists.  Cohen also mentioned the Azov battalion’s children’s training camps:   

When Russian President Vladimir Putin’s seizure of Crimea four years ago first exposed the decrepit condition of Ukraine’s armed forces, right-wing militias such as Azov and Right Sector stepped into the breach, fending off the Russian-backed separatists while Ukraine’s regular military regrouped. Though, as a result, many Ukrainians continue to regard the militias with gratitude and admiration, the more extreme among these groups promote an intolerant and illiberal ideology that will endanger Ukraine in the long term. Since the Crimean crisis, the militias have been formally integrated into Ukraine’s armed forces, but some have resisted full integration: Azov, for example, runs its own children’s training camp, and the careers section instructs recruits who wish to transfer to Azov from a regular military unit

Although Cohen’s claims expose Ukraine’s Neo-Nazis, he also follows the Western establishment and the mainstream media’s narrative that “the Kremlin’s claims that Ukraine is a hornets’ nest of fascists are false: far-right parties performed poorly in Ukraine’s last parliamentary elections, and Ukrainians reacted with alarm to the National Militia’s demonstration in Kiev” which are all lies.  Cohen’s statement is false, in fact, it’s a contradiction when he wrote at the beginning of his article that the “National Militia’s members were recruited from the Azov movement” but not to worry because “Azov has been “reined in” through its integration into Ukraine’s armed forces” at least according to Cohen who sourced his misinformation from Foreign Affairs magazine which is a publication owned by the Council of Foreign Relations, a favorite of of the US political establishment. 

So, does the US government, the Military-Industrial Complex, and the CIA support Ukrainian Neo-Nazis in their ongoing war efforts against Russia today?  Well, the answer to that question should be obvious by now.