THE BEST ENEMY MONEY CAN BUY by Peter Palms

Chapter Fourteen

THE BEST

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The coup d'etat in Russia in which the Bolshevik minority seized control from the revolutionary majority; the role played by New York financiers, masquerading as Red Cross officials, in supporting the Bolsheviks; the unbroken record since then of American assistance in building Russia's war-making potential; the emergence of a "credible enemy" in accordance with the Rothschild Formula. In the previous section we saw that the Red Cross Mission in revolutionary Russia was, in the words of its own personnel, "nothing but a mask." This leads to the logical question, what were the true motives and goals that were hidden behind that mask. In later years, it would be explained by the participants themselves that they simply were engaged in a humanitarian effort to keep Russia in the war against Germany and, thus, to help the cause of freedom for England and her allies. For Jacob Schiff and other Jewish financiers in New York, there was the additional explanation that they opposed the Tsar because of his anti-Semitism. These, of course, are admirable motives, and they have been uncritically accepted by mainstream historians ever since. Unfortunately, the official explanations do not square with the facts. RUSSIA'S TWO REVOLUTIONS

The facts are that there were two revolutions in Russia that year, not one. The first, called the February Revolution, resulted in the establishment of a provisional socialist government under the leadership of Aleksandr Kerensky. It was relatively moderate in its policies and attempted to accommodate all revolutionary factions including the Bolsheviks who were the smallest minority. When

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the February Revolution occurred, Lenin and Trotsky were not even in Russia. Lenin was in Switzerland and didn't arrive until April. Trotsky was still in New York writing propaganda and giving speeches. The second revolution, called the October Revolution, was the one through which the Bolsheviks came to power. It was, in fact, no revolution at all. It was a coup d'etat. The Bolsheviks simply took advantage of the confusion and indecisiveness that existed among the various groups that comprised the new government and caught them by surprise with a lightening strike of force. With a combination of bribes and propaganda, they recruited several regiments of soldiers and sailors and, in the early morning darkness of October 25, methodically took military possession of all government buildings and communication centers. No one was prepared for such audacity, and resistance was almost non-existent. By dawn, without the Russian people even knowing what had happenedâ&#x20AC;&#x201D;much less having any voice in that action, their country had been captured by a minority faction and became the world's first so-called "people's republic." Within two days, Kerensky had fled for his life, and all Provisional Government ministers had been arrested. That is how the Communists seized Russia and that is how they held it afterward. Contrary to the Marxian myth, they have never represented the people. They simply have the guns. The basic facts of this so-called revolution are described by Professor Leonard Schapiro in his authoritative work, The

Russian Revolutions of 1917: All the evidence suggests that when the crisis came the great majority of units of the Petrograd Garrison did not support the government but simply remained neutral.... The Cossack units rejected its call for support, leaving the government with only a few hundred women soldiers and around two thousand military cadets on its side. The Bolsheviks, on the other hand, could count on several regiments to carry out their orders. Units of the Baltic Fleet also supported them.... In the event, the Bolshevik take-over was almost bloodless: in contrast with what had happened in February, nothing could have been less like a city in the throes of revolution than Petrograd on 25 October. Crowds of well-dressed people thronged the streets in the evening. Theaters and restaurants were open, and at the opera, Shaliapin sang in Boris Godunov.

THE CREATURE FROM JEKYLL ISLAND The principal stations and services

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had all been taken over by the morning of 25 October without a shot being fired.... A battleship and several cruisers, including the Aurora, had reached Petrograd from Kronstadt and were anchored with their guns trained on targets in the city.... The Provisional Government inside the Winter Palace...received an ultimatum calling for surrender of its members, under threat of bombardment of the palace by Aurora and by the guns of the Peter and Paul Fortress.... It was only at 9:40 P.M. that the Aurora was ordered to fireâ&#x20AC;&#x201D;and discharged one blank shell. The main effect of this was to accelerate the thinning out of the cadet defenders of the palace, who had already begun to dwindle. The women soldiers, who had formed part of its defense force, also left before the palace was invaded. At 11 P.M. some live shells were fired, and the palace was slightly damaged.... The story of the dramatic storming of the Winter Palace, popular with Soviet historians and in the cinema, is a myth. At around 2 A.M. on 26 October, a small detachment of troops, followed by an unruly crowd and led by two members of the MRC [Military Revolutionary Committee], entered the palace. The remaining officer cadets were, apparently, prepared to resist, but were ordered to surrender by the ministers. In the end, the total casualties were three officer cadets wounded.1

POPULAR SUPPORT WAS NOT NECESSARY Eugene Lyons had been a correspondent for United Press in revolutionary Russia. He began his career as highly sympathetic to the Bolsheviks and their new regime, but six years of actual living inside the new socialist utopia shattered his illusions. In his acclaimed book, Workers' Paradise Lost, he summarizes the true meaning of the October Revolution: Lenin, Trotsky, and their cohorts did not overthrow the monarchy. They overthrew the first democratic society in Russian history, set up through a truly popular revolution in March, 1917.... They represented the smallest of the Russian radical movements.... But theirs was a movement that scoffed at numbers and frankly mistrusted the multitudes. The workers could be educated for their role after the revolution; they would not be led but driven to their terrestrial heaven. Lenin always sneered at the obsession of competing socialist

1. Leonard Shapiro, The Russian Revolutions of 1917 (New York: Basic Books, 1984), pp. 135-36.

THE BEST ENEMY MONEY CAN BUY groups with their "mass base." "Give us an organization of

1. Leonard Shapiro, The Russian Revolutions of 1917 (New York: Basic Books, 1984), pp. 135-36.

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professional revolutionaries," he used to say, "and we will turn Russia upside down."... Even these contingents were pathetically duped, having not the remotest notion of the real purposes for which they were being used. They were striking out, they thought, for the multiparty Soviets, for freedom, equality, and other goals which their organizers regarded as emotional garbage.... On the brink of the dictatorship, Lenin dared to promise that the state will fade away, since "all need of force will vanish." Not at some remote future, but at once: "The proletarian state begins to wither immediately after its triumph, for in a classless society a state is unnecessary and impossible.... Soviet power is a new kind of state, in which there is no bureaucracy, no police, no standing army." Also: "So long as the state exists, there is no freedom. When there is freedom, there will be no state." Within a few months after they attained power, most of the tsarist practices the Leninists had condemned were revived, usually in more ominous forms: political prisoners, convictions without trial and without the formality of charges, savage persecution of dissenting views, death penalties for more varieties of crime than in any other modern nation. The rest were put into effect in the following years, including the suppression of all other parties, restoration of the internal passport, a state monopoly of the press, along with repressive practices the monarchy had outlived for a century or more. 1

All of this, of course, is a departure from the main narrative, but it has been necessary to illustrate a fact that has been obscured by the passage of time and the acceptance of myth by mainstream historians. The fact is that Lenin and Trotsky were not sent to Russia to overthrow the anti-Semitic Tsar. Their assignment from Wall Street was to overthrow the revolution.

NOTES FROM LINCOLN STEFFENS' DIARY That this was the prevailing motive of the New York money powers was dearly brought to light in the diary of Lincoln Steffens, one of America's best-known leftist writers of that time. Steffens was on board the S.S. Kristianiafjord when Trotsky was taken off and arrested in Halifax. He carefully wrote down the conversations he had with other passengers who also were headed to strifetorn Russia. One of these was Charles Crane, vice president 1. Eugene Lyons, Workers' Paradise Lost (New York: Funk & Wagnalls, 1967) pp. 13-29.

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of the Crane Company. Crane was a backer of Woodrow Wilson and former

1. Eugene Lyons, Workers' Paradise Lost (New York: Funk & Wagnalls, 1967) pp. 13-29.

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chairman of the Democratic Party's finance committee. He also had organized the Westinghouse Company in Russia and had made no fewer than twenty-three prior visits. His son, Richard Crane, was the confidential assistant to then Secretary of State, Robert Lansing. It is instructive, therefore, to read Steffens' notes regarding the views of these traveling companions. He wrote: "... all agree that the revolution is in its first phase only, that it must grow. Crane and the Russian Radicals on the ship think we shall be in Petrograd for the rerevolution." 1 Precisely. Re-revolution was the expectation and the goal, not the elimination of anti-Semitism. With regard to Thompson's claim that he was merely trying to keep Russia in the war against Germany, here again, the logic of actual events speak against it. Kerensky and the provisional government were for the war effort. Yet, the Red Cross masqueraders eventually threw their strongest support to the Bolsheviks who were against it. Their excuse was that it was obvious the Bolsheviks would soon control the new government and they were merely looking to the future. They did not like the Bolsheviks, they said, but had to deal with them pragmatically. So they became staunch supporters merely to gain influence with the inevitable victors and, hopefully, to persuade them to change their position on the war. Alas, it didn't work out that way. Influence they had, as we have seen, but the Bolsheviks never wavered in their views. After seizing control in the October coup d'etat, they did exactly what they claimed all along they would do. They signed a peace treaty with Germany and confiscated private property. They also began one of the world's greatest bloodbaths to eliminate their opposition. None of this could be blamed on the masqueraders, you understand. It was all the fault of Wilson and the other politicians at home who, by not following Thompson's recommendation to send U.S. tax dollars to the Bolsheviks, forced them into such drastic action. That, at least, is the accepted view. In reality, a Bolshevik victory at that time was anything but certain, and there was little reasonâ&#x20AC;&#x201D;beyond the support given by the New York financiers themselvesâ&#x20AC;&#x201D;to believe they would become the dominant voice of Russia. But, even if we grant the 1. Lincoln Steffens, The Letters of Lincoln Steffens (New York: Harcourt, Brace, 1941), p. 396.

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assumption that these men were unusually astute political observers who were truly able to foresee the future course, we are still faced with serious obstacles, not the least of which are the thoughts and words of the masqueraders themselves. For example, in February of 1918, Arthur Bullard was in Russia as head of the Russian branch of the Committee on Public Information, which was the warpropaganda arm of the U.S. government. Bullard was aptly described by historian George Kennan as a "liberal socialist, free lance writer, and private eye of Colonel House."1 In his official capacity he had many occasions to consult with Raymond Robins and, in a report describing one of these conversations, Bullard wrote: He [Robins] had one or two reservationsâ&#x20AC;&#x201D;in particular, that recognition of the Bolsheviks was long overdue, that it should have been effected immediately, and that had the U.S. so recognized the Bolsheviks, "I believe that we would now be in control of the surplus resources of Russia and have control officers at all points on the frontier."2

WOLVES BEHIND THE MASK The following year, the U.S. Senate conducted an investigation into the role played by prominent American citizens in supporting the Bolshevik's rise to power. One of the documents entered into the record was an early communique from Robins to Bruce Lockhart. In it Robins said: You will hear it said that I am an agent of Wall Street; that I am the servant of William B. Thompson to get Altai Copper for him; that I have already got 500,000 acres of the best timber land in Russia for myself; that I have already copped off the TransSiberian Railway; that they have given me a monopoly of the platinum in Russia; that this explains my working for the soviet.... You will hear that talk. Now, I do not think it is true, Commissioner, but let us assume it is true. Let us assume that I am here to capture Russia for Wall Street and American business men. Let us assume that you are a British wolf and I am an American wolf, and that when this war is over we are going to eat each other up for the Russian market; let us do so in perfectly frank, man fashion, but let us assume at the same time that we are fairly intelligent

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1. George F. Kennan, The Decision to Intervene: Soviet-American Relations, 1917-1920 (Princeton, New Jersey: Princeton University Press, 1958), pp. 190, 235. 2. Bullard ms., U.S. State Dept. Decimal File, 316-11-1265, March 19, 1918.

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wolves, and that we know that if we do not hunt together in this hour the German wolf will eat us both up. 1

Professor Sutton has placed all this into perspective. In the following passage, he is speaking specifically about William Thompson, but his remarks apply with equal force to Robins and all of the other financiers who were part of the Red Cross Mission in Russia. Thompson's motives were primarily financial and commercial. Specifically, Thompson was interested in the Russian market, and how this market could be influenced, diverted, and captured for postwar exploitation by a Wall Street syndicate, or syndicates. Certainly Thompson viewed Germany as an enemy, but less a political enemy than an economic or a commercial enemy. German industry and German banking were the real enemy. To outwit Germany, Thompson was willing to place seed money on any political power vehicle that would achieve his objective. In other words, Thompson was an American imperialist fighting against German imperialism, and this struggle was shrewdly recognized and exploited by Lenin and Trotsky.... Thompson was not a Bolshevik; he was not even proBolshevik. Neither was he pro-Kerensky. Nor was he even proAmerican. The overriding motivation was the capturing of the postwar Russian market. This was a commercial objective. Ideology could sway revolutionary operators like Kerensky, Trotsky, Lenin et al., but not financiers. 2

Did the wolves of the Round Table actually succeed in their goal? Did they, in fact, capture the surplus resources of Russia? The answer to that question will not be found in our history books. It must be tracked down along the trail of subsequent events, and what we must look for is this. If the plan had not been successful, we would expect to find a decline of interest on the part of high finance, if not outright hostility. On the other hand, if it did succeed, we would expect to see, not only continued support, but some evidence of profit taking by the investors, a payback for their efforts and their risk. With those footprints as our guide, let us turn now to an overview of what has actually happened since the Bolsheviks were assisted to power by

THE BEST ENEMY MONEY CAN BUY 13 the Round Table network. 1. U.S. Cong., Senate, Bolshevik Propaganda, Subcommittee of the Committee on the Judiciary, 65th Cong., 1919, p. 802. 2. Sutton, Revolution, pp. 97-98.

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ITEM: After the October Revolution, all the banks in Russia were taken over and "nationalized" by the Bolsheviks— except one: the Petrograd branch of Rockefeller's National City Bank. ITEM: Heavy industry in Russia was also nationalized— except the Westinghouse plant, which had been established by Charles Crane, one of the dignitaries aboard the S.S. Kristianiafjord who had traveled to Russia with Trotsky to witness the re-revolution. ITEM: In 1922, the Soviets formed their first international bank. It was not owned and run by the state as would be dictated by Communist theory, but was put together by a syndicate of private bankers. These included, not only former Tsarist bankers, but representatives of German, Swedish, and American banks. Most of the foreign capital came from England, including the British government itself. 1 The man appointed as Director of the Foreign Division of the new bank was Max May, Vice President of Morgan's Guaranty Trust Company in New York. ITEM: In the years immediately following the October Revolution, there was a steady stream of large and lucrative (read non-competitive) contracts issued by the Soviets to British and American businesses which were directly or indirectly run by the Round Table network. The largest of these, for example, was a contract for fifty million pounds of food products to Morris & Company, Chicago meat packers. Edward Morris was married to Helen Swift, whose brother was Harold Swift. Harold Swift had been a "Major" at the Red Cross Mission in Russia. ITEM: In payment for these contracts and to return the "loans" of the financiers, the Bolsheviks all but drained their country of its gold—which included the Tsarist government's sizable reserve— and shipped it primarily to American and British banks. In 1920 alone, one shipment came to the U.S. through Stockholm valued at 39,000,000 Swedish kroner; three shipments came direct involving 540 boxes of gold valued at 97,200,000 gold roubles; plus at least one other direct shipment bringing the total to about $20 million. (Remember, these are 1920 values!) The arrival of these

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shipments was coordinated by Jacob Schiff's Kuhn, Loeb & Company and deposited by Morgan's Guaranty Trust. 2

1. 2.

U.S. State Dept. Decimal File, 861.516/129, August 28, 1922.

U.S. State Dept., Decimal File, 861.51/815, 836, 837, October, 1920. Also Sutton, Revolution, pp. 159-60, 165.

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ITEM: It was at about this time that the Wilson Administration sent 700,000 tons of food to the Soviet Union which, not only saved the regime from certain collapse, but gave Lenin the power to consolidate his control over all of Russia. 1 The U.S. Food Administration, which handled this giant operation, was handsomely

profitable for those commercial enterprises that participated. It was headed by Herbert Hoover and directed by Lewis Lichtenstein Strauss, married to Alice Hanauer, daughter of one of the partners of Kuhn, Loeb & Company. ITEM: U.S., British, and German wolves soon found a bonanza of profit in selling to the new Soviet regime. Standard Oil and General Electric supplied $37 million worth of machinery from 1921 to 1925, and that was just the beginning. Junkers Aircraft in Germany literally created Soviet air power. At least three million slave laborers perished in the icy mines of Siberia digging ore for Britain's Lena Goldfields, Ltd. W. Averell Harriman—a railroad magnate and banker from the United States who later was to become Ambassador to Russia—acquired a twenty-year monopoly over all Soviet manganese production. Armand Hammer—close personal friend of Lenin—made one of the world's greatest fortunes by mining Russian asbestos.

ADDITIONAL BACKGROUND: THE DEAF MUTE BLINDMEN In those early years, the Bolsheviks were desperate for foreign goods, services, and capital investment. They knew that they would be gouged by their "capitalist" associates, but what of it? It wasn't their money. All they cared about was staying in power. And that was not as easy as it may have seemed. Even after the coup d'etat in which they seized control of the mechanism of government, they still did not control the country at large. In fact, in 1919, Lenin had almost given up hope of expanding beyond Petrograd and a part of Moscow. Except for Odessa, all of Southern Russia and the Crimea

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were in the hands of General Deniken who was strongly antiCommunist. Speaking before the Tenth Congress of the Russian Communist Party, Lenin laid it out plainly:

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Without the assistance of capital it will be impossible for us to retain proletarian power in an incredibly ruined country in which the peasantry, also ruined, constitutes the overwhelming majority â&#x20AC;&#x201D;and, of course, for this assistance capital will squeeze hundreds per cent out of us. This is what we have to understand. Hence, either this type of economic relations or nothing..

On another occasion Lenin further explained his rationale for accepting Wall Street's terms. He said: The Capitalists of the world and their governments, in pursuit of conquest of the Soviet market, will close their eyes to the indicated higher reality and thus will turn into deaf mute blindmen. They will extend credits, which will strengthen for us the Communist Party in their countries; and giving us the materials and technology we lack, they will restore our military industry, indispensable for our future victorious attack on our suppliers. In other words, they will labor for the preparation of their own suicide. 2

Arthur Bullard, mentioned previously as the representative in Russia of the U.S. Committee on Public Information, apparently understood the Bolshevik strategy well. Even as early as March of 1918, he sent a cablegram to Washington warning that, while it is true we ought to be ready to help any honest government in need, nevertheless, he said, "men or money sent to the present rulers of Russia will be used against Russians at least as much as against Germans.... I strongly advise against giving material help to the present Russian government. Sinister elements in Soviets seem to be gaining control."3 Unfortunately, Mr. Bullard was a minor player in this game, and his opinion was filtered by others along the way. This cablegram was sent to his superior, none other than Col. Edward Mandell House, in hopes that it would be relayed to the President. The message did not get through.

A SIDE TRIP THROUGH WORLD WAR II

Returning to the trail of actual events since that time, let us pause briefly to take a short side trip through World War II.

V.I. Lenin, Report to the Tenth Congress of the Russian Communist Party,

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March 15, 1921. Quoted by Sutton, Revolution, p. 157. 2. Quoted by Joseph Finder, Red Carpet (New York: Holt, Rinehart and Winston, 1983), p. 8. 3. Arthur Bullard papers, Princeton University, cited by Sutton, Revolution, p. 46.

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Financing and profiting from both sides in a conflict has never been more blatant. ITEM: From the beginning of Hitler's rise to power, German industry was heavily financed by American and British bankers. Most of the largest U.S. Corporations were knowingly invested in war industries. I.G. Farben was the largest of the industrial cartels and was a primary source of political funding for Hitler. It was Farben that staffed and directed Hitler's intelligence section and ran the Nazi slave labor camps as a supplemental source of manpower for Germany's factories. Farben even hired the New York public relations firm of Ivy Lee, who was John D. Rockefeller's PR specialist, to help improve Hitler's public image in America. Lee, incidentally, had also been used to help sell the Soviet regime to the American public in the late 1920s. 1 ITEM: Much of the capital for the expansion of I.G. Farben came from Wall Street, primarily Rockefeller's National City Bank; Dillon, Read & Company, also a Rockefeller firm; Morgan's Equitable Trust Company; Harris Forbes & Company; and, yes, the predominantly Jewish firm of Kuhn, Loeb & Company. 2 ITEM: During the Allied bombing raids over Germany, the factories and administrative buildings of I.G. Farben were spared. The U.S. War Department, which determined bombing priorities, was liberally staffed with men, who in civilian life, had been associates of the investment firms previously mentioned. For example, Under Secretary of War at that time was Robert P. Patterson. James Forrestal was Secretary of the Navy and later became Secretary of Defense. Both men had come from Dillon Read and, in fact, Forrestal had been president of that firm. ITEM: During World War II, under the Lend-Lease program, the United States sent to the Soviets more than $11 billion in aid, including 14,000 aircraft, nearly half a million tanks and other military vehicles, more than 400 combat ships, and even half of the entire U.S. supply of uranium which then was critically needed for the development of the atomic bomb. But fully one-third of all the Lend-Lease shipments during this period comprised

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industrial equipment and supplies to be used for the development of the

1. Antony Sutton, Wall Street and the Rise of Hitler (Seal Beach, California: '76 Press, 1976),. 15-18,33-43,67-97,99-113. Also Revolution, p. 174. 2. Sutton, Hitler, pp. 23-61.

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Russian economy after the war. And when the war did end, the Lend-Lease program continued to flow into the Soviet Union for over a year. As late as the end of 1946, Russia was still receiving twenty-year credit terms at 23/8 per cent interest, a far lower rate than returning GIs could obtain. 1

THE TRANSFUSION MECHANISM With the termination of the Lend-Lease program, it was necessary to invent new mechanisms for the support of Soviet Russia and her satellites. One of these was the sale of much-needed commodities at prices below the world market and, in fact, below the prices that Americans themselves had to pay for the same items. This meant, of course—as it did in the case of Lend Lease—that the American taxpayer had to make up the difference. The Soviets were not even required to have the money to buy these goods. American financial institutions, the federal government, and international agencies, which are largely funded by the federal government, such as the International Monetary Fund and the World Bank—lent the money to them. Furthermore, the interest rates on these loans also are below the market requiring still additional subsidy by American citizens. And that is not all. Almost all of these loans have been guaranteed by the United States government, which means that if—no, make that when— these countries default in their payments, the gullible American public is once again called upon to make them good. In other words, the new mechanism, innocently and deceptively referred to as "trade," is little more than a thinly disguised means by which members of the Round Table who direct our national policies have bled billions of dollars from American citizens for an ongoing economic transfusion into the Soviet bloc—and continue to do so now that the word Soviet has been changed to the less offensive Democratic Socialism. This enables those regimes to enter into contracts with American businessmen to provide essential services. And the circle is complete: From the American taxpayer to the American

government to the "socialist" regime to the American businessman and, ultimately, to the American financier who funded the project and provided the political influence to make it all possible.

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This is the key to understanding the transfusion mechanism. Many Americans have looked at this process and have jumped to the conclusion that there must be a nest of Communist agents within our government. In an exam on reality politics, they would receive half credit for that answer. Yes, there undoubtedly have been, and continue to be, Red agents and sympathizers burrowed deep into our government woodwork, and they are all too happy to help the process along. But the main motive force has always come from the non-Communist, non-Democratic Socialist, non-American, non-anything members of the Round Table network who, as Lenin said, in the pursuit of profit are laboring for the preparation of their own suicide. These men are incapable of genuine patriotism. They think of themselves, not as citizens of any particular country, but as citizens of the world. They can do business just as easily with bloodthirsty dictatorships as with any other governmentâ&#x20AC;&#x201D;especially since they are assured by the transfer mechanism that the American taxpayer is going to make good on the deal. When David Rockefeller was asked about the propriety of providing funding for Marxist and Communist countries which are openly hostile to the United States, he responded: "I don't think an international bank such as ours ought to try to set itself as a judge about what kind of government a country wishes to have." Wishes to have? He was talking about Angola where the Marxist dictatorship was forced upon the people with Cuban soldiers and Soviet weapons! Thomas Theobald, Vice President of Citicorp, was asked in 1981 about his bank's loans to Poland. Was he embarrassed by making loans to a Communist country, especially following the regime's brutal repression of free-trade unions? Not at all. "Who knows which political system works?" he replied. "The only test we care about is, can they pay their bills." What he meant, of course, was can the American taxpayer pay Poland's bills. ITEM: The following item, taken directly from the Los Angeles Times just a few months after Theobald's statement, tells the story: WASHINGTONâ&#x20AC;&#x201D;For months, the Reagan Administration has been using federal funds to repay Polish loans owed to U.S. banks, and the bill for this fiscal year may amount to

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$400 million, Deputy Secretary of Agriculture Richard E. Lyng said Monday.... "They (the Polish authorities) have not been making payments for at least the last

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half of the last year," Lyng said. "When they don't make a payment, the U.S. Department of Agriculture makes a payment."... Lyng said the U.S. Government paid $60 million to $70 million a month on guaranteed Polish loans in October, November, December, and Januaryâ&#x20AC;&#x201D;and "we will continue to pay them."

This, remember, was precisely at the time the Polish government had declared martial law and was using military force to crush workers' demonstrations for political reform. The Polish default on this $1.6 billion loan was by no means an isolated event. Communist Rumania and a multitude of Latin American countries were soon to follow. The hard fact is that American taxpayers unknowingly have been making monthly bank payments on behalf of Communist, socialist, and so-called Third-World countries for many years. And, with the more recent staging of apparent reform within the former Soviet bloc, Congress has tripped all over itself to greatly accelerate that trend. Americans, of course, want to believe that the Evil Empire is crumbling, and the Soviets-turned-Democrats play directly to that desire. Since the end of World War II, their primary objectives have been (1) to disarm us and (2) to get our money. The facade of Perestroika and Glasnost has been merely a ploy to accomplish both objectives at once. All they have had to do is get rid of a few of the old hard-liners, replace them with less well-known personalities who are essentially the same (all of the new leaders come from the ranks of the old leadership), change their labels from "Communists" to "Social Democrats," and then sit back while we happily tear down our military defenses and rush billions of dollars to their failing economies. There undoubtedly will be some progress allowed in the area of free speech, but the military and security organizations continue in full readiness. The iron fist beneath the velvet glove remains ready to strike when the time comes that the facade is no longer necessary. Even if the entire ploy were genuine, there is no reason to believe that these Social Democracies will ever become better investment risks. The primary thing that has held them back

1. "U.S. Repaying Loans Owed by Poland to American Banks," by William J Eaton, Los Angeles Times, February 2,1982.

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economically in the past is their socialist system, and that most

1. "U.S. Repaying Loans Owed by Poland to American Banks," by William J Eaton, Los Angeles Times, February 2,1982.

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definitely will not be changed. All of the new "anti-Communist Social Democrats" have pledged their loyalty to the principles of Marx and have said in plain language that they will use our money to develop, not abandon socialism. These countries will continue to be unproductive and will continue to be unable to pay their loans. The American taxpayers will continue to be forced by the Cabal to pay the bill. ITEM: Before the Bolshevik coup d'etat, Russia was one of the most productive agricultural nations in the world. The great wheat fields in Ukraine justly earned her the title of the Bread Basket of Europe. But when the people's utopia arrived, agriculture came to a standstill, and famine stalked the land. Even after Stalin, when the regime is said to have adopted more humane and productive policies, Russia never produced enough food for itself. A nation that cannot feed its citizens cannot develop its industry and it certainly cannot build a potent military force. It is not surprising, therefore, that for decades, the United States has annually "sold" tens of millions of tons of wheat—and other food stuffs—to Russia. The quote marks are to emphasize the underlying transfusion mechanism previously described. ITEM: The American government-industrial complex provided the Soviets with the money, technology, and the actual construction of two of the world's largest and most modern truck plants. The Kama River plant and the Zil plant produce over 150,000 heavy-duty trucks per year—including armored personnel carriers and missile launchers—plus 250,000 diesel engines, many of which are used to power Soviet tanks. Forty-five per cent of the cost of this project came from the U.S. Export-Import Bank, an agency of the federal government, and an equal amount from David Rockefeller's Chase Manhattan Bank. The Soviets put up only ten per cent. The loan, of course, was taxpayer-guaranteed by the U.S. Export-Import Bank which, at the time, was under the direction of William Casey. Casey later was appointed as head of the C.I.A. to protect America from global Communism.1 (Are you beginning to get the picture?) ITEM: Almost every important facet of Eastern-Bloc heavy industry could well be stamped "Made in the U.S.A." With the

1. "U.S. Builds Soviet War Machine," Industrial Research & Development, July, 1980, pp. 51-54.

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specific approval of each successive president, we have provided the latest oil-drilling equipment, chemical processing plants, air-traffic radar systems, equipment to produce precision bearings, large-craft helicopter engines, laser technology, highly advanced computer systems, and nuclear power plants. We have trained

hundreds of their technicians in American institutions and factories and have provided their astronauts with the space suits developed by NASA. We have even trained their pilots at U.S. Air Force bases and paid for their military officers to attend our War College. All of this has been used by the Russian governmentâ&#x20AC;&#x201D;as Lenin predicted it wouldâ&#x20AC;&#x201D;to build their military industry in preparation for an attack on their suppliers. The great pretense of crumbling Communism has not altered that strategy. It is the brilliant implementation of it. ITEM: When Boris Yeltsin seized control of the former Soviet government, one of his first official acts was to decree that foreign businesses had the right to take their profits out of the country. From a purely business perspective, that was a sound move because it would provide incentive for foreign investment. But there was more to it than that. Recall from a previous chapter that the lion's share of that investment was to be funded by American taxpayers in the form of direct aid, bank-loan bailouts, and government insurance through the Overseas Private Investment Corporation. Jane Ingraham provides the details: During 1992 Yeltsin wheeled and dealed with Royal Dutch/Shell, British Petroleum, Amoco, Texaco, and Exxon. The Chevron joint venture to develop the Tengiz oil field was signed. McDermott International, Marathon Oil, and Mitsui signed a contract with the Russian government to develop oil and natural gas off Sakhalin Island. Chevron and Oman formed a consortium to build a huge pipeline to carry crude oil from Kazakhstan to the Black Sea, Mediterranean, and Persian Gulf. Occidental Petroleum signed a joint venture with Russia to modernize two oil fields in Siberia.... Newmont mining signed a joint venture to extract gold in Uzbekistan. Merrill Lynch's chairman, William Schreyer (CFR), signed up as financial

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adviser to "aid in privatizing" the Ukrainian State Property Fund. AT&T CEO Robert Allen (CFR, TC 1) signed a huge contract to supply switching systems for all of Kazakhstan.... 1. Trilateral Commission.

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US West joined with the Hungarian government to own and operate a national cellular telephone system; GM Vice President Marina Whitman (CFR, TC) joined the governments of Hungary and Yugoslavia to make cars; GE CEO John Welch (CFR) and vice chairman of the board, Lawrence Bossidy (TC), bought a majority stake in Hungary's lighting industry; Ralston-Purina, Dow Chemical, Eastman Kodak, SC Johnson & Son, Xerox, American Express, Procter & Gamble, Woolworth, Philip Morris, Ford, Compaq Computer— hardly a single American brand name was missing. 1

ITEM: In February of 1996, the Clinton Administration made a $1 billion loan of US taxpayers' money to Russia's state-controlled Aeroflot company so it could more effectively compete with American companies such as Boeing in the building of jumbo jets. By the end of that year, the former Soviet Bloc countries had received transfusions from the World Bank of over $3 billion. By mid 2000, it was clear that Russian officials had laundered an additional $7 billion from IMF loans through the Bank of New York. Yet, new "loans" continue to flow. ITEM: Now the action has spread to China. American banks and businessmen—with taxpayers standing by with guarantees— have provided power-generating equipment, steel mills, and military hardware including anti-submarine torpedoes and high-tech electronic gear to update Russianmade jet fighters. All of this is explained as a means of weaning the Red Chinese away from mother Russia and encouraging them to move closer to free-enterprise capitalism. Yet, in 1985, at the height of the frenzy over building trade bridges to China, the regime signed a $14 billion trade pact with Russia and, in 1986, sent a $20 million interest-free loan to the Communist Sandinistas in Nicaragua. Even after the 1989 Tiananmen Square massacre in Beijing, when U.S. officials were publicly condemning China for human-rights violations, business quietly continued as usual. "The United States cannot condone the violent attacks and cannot ignore the consequence for our relationship with China," said President Bush. Yet, within only a few weeks of the bloodshed, and at the very time that

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student leaders were being executed, the Administration approved a $200 million, low-interest loan for delivery of four of Boeing's newest jumbo-jet aircraft. In 1993, forty-seven more jetliners were sold with

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a projected sale of 800 more over the next fifteen years. Amoco is spending $1.5 billion to develop oil fields in the China Sea. A joint venture between the Chinese government and Chrysler is building military jeeps. A similar joint project is upgrading their F-8 fighter planes. Three communications satellites were cleared for delivery. AT&T contracted a $30 million cellular communications network. China's interest in military technology is revealing. In addition to the advanced hardware purchased from the United States, the Chinese have bought MIG-31 and SU-27 jet fighters from Russia and an aircraft carrier constructed in Ukraine. In May of 1992, China set off its biggest underground nuclear blast. In 1997, the purchase list was extended to include selfpropelled gun-mortar systems and Russia's most advanced diesel-electric submarines. Although it is known that China maintains a slave-labor work force in excess of a million peopleâ&#x20AC;&#x201D;they call them "convicts"â&#x20AC;&#x201D;and although the Tariff Act of 1930 prohibits the United States from importing any goods made even in part by convicts or other forced labor, every administration starting with Nixon has renewed the "most-favored-nation" trade status for China. How is China expected to pay for all this "trade"? Very simple. By 1996, China had become the largest single recipient of guaranteed loans and subsidies from the World Bank. ITEM: In addition to these decades of global trade, credit, and taxpayer guarantees, the United States has transferred tens of billions of dollars in direct foreign-aid grants with no pretense at all regarding expectation of repayment. Why is this done? In June of 2000, President Clinton spoke before the Russian Parliament and provided the answer. He said "The United States wants a strong Russia." The next day, he announced that the U.S. would give $78 million to improve the Chernobyl atomic power plant in Kiev. The trail leads to Wall Street, and the tracks are fresh. The Round Table network did succeed in exploiting the markets of Eastern Europe and continues to do so today. The cast of characters has changed, but the play remains the same. In the beginning, the Council on Foreign Relations was dominated by J.P. Morgan. It is still controlled by international financiers. The

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Morgan group gradually has been replaced by the Rockefeller consortium, and the roll call of participating businesses now reads like the Fortune 500. The operation no longer pretends to be a Red Cross mission; it now masquerades under the cover of "East-West Trade."

THE BEST ENEMY MONEY CAN BUY

Politicians are fond of talking about the necessity of preserving world peace, and trade, we are told, is one of the best ways to do it. The implication is that this is a time of peace. In truth, we live in one of the most war-torn eras the world has ever seen. No continent today, except Antarctica, is free from war. There are from 25 to 40 military struggles going on somewhere every day of the year. There have been more than 150 armed conflicts since the end of World War II with the death count already in excess of 20 million and rising. 1 We cannot help noticing that this also has been a period of rising government debt and the global creation of fiat money.

THE NEW ALCHEMY The alchemists of ancient times vainly sought the philosophers' stone which they believed would turn lead into gold. Is it possible that such a stone actually has been found? Can it be that the money alchemists of our own time have learned how to transmute war into debt, and debt into war, and both into gold for themselves? In a previous section, we theorized a strategy, dubbed the Rothschild Formula, in which the world's money cabal deliberately encourages war as a means of stimulating the profitable production of armaments and of keeping nations perpetually in debt. This is not profit seeking, it is genocide. It is not a trivial matter, therefore, to inquire into the possibility that our elected and non-elected

leaders are, in fact, implementing the Rothschild Formula today. ITEM: In his address to the graduating class at Annapolis in 1983, Secretary of the Navy, John Lehman, said: "Within weeks, many of you will be looking across just hundreds of feet of water at some of the most modern technology ever invented in America. Unfortunately, it is on Soviet ships." As Professor Sutton observed in his book, The Best Enemy Money Can Buy, the guns, the ammunition, the weapons, and the transportation systems that killed Americans in Korea and Vietnam came from the American-subsidized economy of the Soviet Union. The trucks that carried these weapons down the Ho Chi Minh Trail were manufactured in American-built plants. The ships that carried the supplies to Sihanoukville and Haiphong and later to Angola

THE BEST ENEMY MONEY CAN BUY

1. These figures are taken from United Nations publication E/CN.5/1985/Rev.1, 1985 Report on the World Social Situation, p.14. More recent editions of that document do not give cumulative figures but show that the number of conflicts has been accelerating. So the current numbers, whatever they may be, are even worse.

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and Nicaragua came from NATO allies and used propulsion systems that our State Department could have kept out of Soviet hands. Sutton concludes: "The technical capability to wage the Korean and Vietnamese wars originated on both

sides in Western, mainly American, technology, and the political

illusion of "peaceful trade" promoted by the deaf mute blindmen was the carrier for this war-making technology." ITEM: That leads us to the more recent wars in the Middle East and the rise of "Islamic Fundamentalism." Iran, Iraq, Syria, Algeria, the PLO, the Muslim Brotherhood, and similar anti-American groupings have all received weapons, funding, and clandestine support from the U.S. government. In the Gulf War, every effort was made to insure that Hussein's regime was contained but not destroyed (shades of the Korean and Vietnam wars). His military infrastructure and most of his weapons were spared. After the cease fire, he was allowed to keep his fleet of helicopter gunships, which he promptly used to put down a large-scale internal revolt. The big pill to swallow is that, for many years, Hussein was an asset to the global planners in the West, and they did everything possible to keep him in power. It was only when he refused to allow U.S. companies to dominate Iraqi oil production that he was seriously targeted. Prior to that, he was untouchable precisely because he was widely percieved as a perfect, despicable enemy. As mentioned previously, the talent pool for the implementation of this strategy has been the Council on Foreign Relations. In 1996, the Managing Editor of the CFR's journal, Foreign Affairs, was Fareed Zakaria, who offered the following rationalization: Yes, it's tempting to get rid of Saddam. But his bad behavior actually serves America's purposes in the region.... If Saddam Hussein did not exist, we would have to invent him.... The end of Saddam Hussein would be the end of the anti-Saddam coalition. Nothing destroys an alliance like the disappearance of the enemy.... Maintaining a long-term American presence in the gulf would be difficult in the absence of a regional threat. 2 That is about as clear a statement of the Rothschild Formula as one is apt to find. Yet, many people cannot

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believe it is real, even

1. Antony Sutton, The Best Enemy Money Can Buy (Billings, Montana: Liberty House Press, 1986), p. 191. 2. "Thank Goodness for a Villain," Newsweek, Sept. 16, 1996, p. 43.

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Congressmen. For example, Representative James Traficant from Ohio, speaking before the House on April 29, 1997, exclaimed: America gives billions to Russia. With American cash, Russia builds missiles. Russia then sells those missiles to China. And China, who gets about $45 billion in trade giveaways from Uncle Sam, then sells those Russian made missiles to Iran. Now Iran, with those Russian-made missiles sold to them by China, threatens the Mideast. So Uncle Sam ... sends more troops and sends more dollars.... Mr. Speaker, this is not foreign policy. This is foreign stupidity. 1 -

Traficant was on target seeing the problem, but he missed the bull's eye with the cause. CFR policy makers are not stupid. They are implementing the Rothschild Formula. To justify world government, there must be wars. Wars require enemies with frightful weapons. Iran is one of the best enemies money can buy. ITEM: The latest act in this play is the buildup of North Korea. Its nuclear capabilities come from China and Russia., both of which receive U.S. trade, investments, and technology. While President Bush was saying that North Korea was part of the "Axis of Evil" his administration was sending it so-called humanitarian shipments of food, which the regime used to strengthen its control. We must assume that Western leaders have considered Lenin's prediction that, by funding their enemies, they are preparing their own suicideâ&#x20AC;&#x201D;ours, also, by the way. We must also conclude they are confident of avoiding that fate. Whether they are right or wrong is not the issue here. The point is they believe they are correct and they are building a world order which they think they can. How they plan to do that is the subject of a later section, but perpetual war is an important part of it.

FIFTH REASON TO ABOLISH THE SYSTEM There are few historians who would challenge the fact that the funding of World War I, World War II, the Korean War, and the Vietnam War was accomplished by the Mandrake Mechanism through the Federal Reserve System. An overview of all wars since the establishment of the Bank of England in 1694 suggests that most of them would have been greatly reduced in severity, or perhaps not even fought at all, without fiat money. It

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is the ability of governments to acquire money without direct taxation that makes 1. Congressional Record, April 29, 1997.

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modern warfare possible, and a central bank has become the preferred method of accomplishing that. One can argue the necessity, or at least the inevitability, of fiat money in time of war as a means of raw survival. That is the primal instinct of both individuals and governments, all other considerations aside. We shall leave that for the philosophers. But there can be no debate over the fact that fiat money in time of peace has no such justification. Furthermore, the ability of governments and banking institutions to use fiat money to fund the wars of other nations is a powerful temptation for them to become embroiled in those wars for personal profit, political advancement, or other reasons which fall far short of a moral justification for bloodshed. The Federal Reserve System has always served that function. The on-going strategy of building up the military capabilities of America's potential enemies leaves us no reason to believe we have seen the last of war. Therefore, it is not an exaggeration to say that the Federal Reserve System encourages war. There can be no better reason for the Creature to be put to sleep.

SUMMARY The Bolshevik Revolution was a coup d'etat in which a radical minority captured the Russian government from the moderate revolutionary majority. The Red Cross Mission of New York financiers threw support to the Bolsheviks and, in return, received economic rewards in the form of rights to Russia's natural resources plus contracts for construction and supplies. The continued participation in the economic development of Russia and Eastern Europe since that time indicates that this relationship has survived to the present day. These financiers are not pro-Communist. Their motivation is profit and power. They are now working to bring both Russia and the United States into a world government which they expect to control. War and threats of war are tools to prod the masses toward the acceptance of that goal. It is essential, therefore, that the United States and the industrialized nations of the world have credible enemies. As these words are being written, Russia is wearing the mask of peace and cooperation. But we have seen that before. We may

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yet see a return of the Evil Empire when the timing is right. U.S. government and megabank funding, first of Russian, and now of Chinese and Middle-East military capabilities, cannot be understood without this insight.