Chapter 4
COMMUNISM AND FASCISM

4.1 The Heart of the Issue: Power and Property Rights
4.2 Lessons From History

The bedrock of the New World Order is a global financial empire owned and controlled by Western bankers and industrialists. It has been laid down using a two pronged strategy. The first was to finance corrupt and socialist regimes in developing countries in order to stifle the growth of domestic free enterprise causing them to become dependent on Western industry and finance.

The second was a form of international economic piracy, where the World Bank and IMF fired a broadside of debt at Third World economies, knocking out their engine of growth, and allowing the Western multinationals to climb aboard and plunder their national resources and natural industries.

The success of the strategy can be judged on the one hand by looking at progress towards free-market economies and property rights around the world, and the other, the extent to which developing countries are beholden to Western corporations. To reach a moral conclusion about it, one might also consider the impact of the strategy on human rights, because the cartel has financed communist and fascist regimes alike, with absolutely no qualms about the human cost.

The emblem which best represents it is the skull and cross-bones motif of Yales' famous secret society, The Order of Skull and Bones. Many members of the cartel have belonged to it including generations of the Bush family. This emblem is the universal symbol of both and piracy and lethality, thereby representing the economic poison swallowed by most Third World nations.

The Order was founded in 1832 by William Russell whose family fortune was built upon the global trade in opium, a substance almost as addictive and destructive as the drip-feed of Western currency.
 

4.1 THE HEART OF THE ISSUE: POWER AND PROPERTY RIGHTS

There is a staggering correlation between private property rights and political freedoms. GNP per capita in the U.S. is above $20,000 but in former Eastern Bloc countries it averages between $730 and $5000.(1) Whilst governments of lesser developed countries have had access to an unlimited supply of money from abroad, private enterprise has been stifled because the citizens of these countries have been denied access to capital by politicians.

Hernando de Soto's highly acclaimed book The Mystery of Capital (2) documents how much 'dead capital' exists in developing countries. This refers to private property which cannot be used as collateral to obtain loans or buy stock in another business because the owner has not been given adequate property rights by the state.

De Soto concludes:

They have houses but not titles; crops but not deeds; businesses but not statutes of incorporation. It is the unavailability of these essential representations that explains why people who have adapted every other Western invention, from the paper clip to the nuclear reactor, have not been able to produce sufficient capital to make their domestic capitalism work.(3)

He estimates that nearly 5 billion people are legally and economically disenfranchised by their own governments. Very few property owners hold government-licensed titles outside of North America, Canada, Australia, Japan and Western Europe. The total value of this dead capital has been calculated to be 9.3 trillion dollars which is forty-six times as much as all the World Bank loans of the past three decades.
 

4.2 LESSONS FROM HISTORY

NAZI GERMANY

The Nazis were financed by German industries such as Krupp and I.G. Farben and their owners and directors held key positions in Hitler's government. However, German industry was itself partly financed by British and American bankers.

 

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

• even the predominantly Jewish firm of Kuhn Loeb & Company

In 1928, Henry Ford merged his German assets with those of I.G. Farben.(4) 40% of Ford Motor A.G. of Germany was transferred to I.G. Farben and Edsel Ford joined the board of American I.G.. A decade later, in August 1938, Henry Ford received the Grand Cross of the German Eagle, a Nazi decoration for distinguished foreigners.

(5) During the Allied bombing raids over Germany, the factories and offices of I.G. Farben were spared on instructions from the U.S. War Department.
 

RUSSIA

Without the intervention of the German government, Round Table leaders and associated Wall Street financiers, the Bolshevik revolution would never have succeeded. The popular Kerensky revolution which over-threw the Tsar occurred in February 1917. It was relatively moderate in its policies and attempted to accommodate all revolutionary factions including the Bolsheviks who were the smallest minority. The second revolution in October 1917 was a coup d'etat by the Bolsheviks who had succeeded in recruiting sufficient military support with the financial backing of Round Table and Co.(6)

Prominent American financiers included J.P. Morgan controlled Guaranty Trust Company and William Boyce Thompson, a director of the Federal Reserve Bank of New York and leader of the Red Cross mission to Russia during the revolution.(7) British funding came from banker and founding member of Round Table, Lord Milner.(8)

When private property was outlawed after the revolution, foreign money and corporations were needed to prevent the economy and the communist regime from collapsing. It has remained that way ever since: A symbiosis of the two powers whereby Western financial support for Russia's ailing economy has been channeled into the pockets of the international bankers via the companies they control. With domestic capitalism outlawed, revolutionary Russia was right from the start a 'captured market' for the Western bankers. This model has been used in country after country throughout the world.

All the banks in Russia were nationalized after the revolution except the Petrograd branch of Rockefeller's National City Bank. In 1922 the first Soviet international bank, the Ruskombank, was created by a cartel of Tsarist, German, Swedish, American and British bankers. In exchange for Russian gold, a steady stream of large and lucrative (i.e. non-competitive) contracts were awarded to British and American businesses connected to Round Table.(9)

Russia's gold reserves were soon depleted therefore game could only continue with the support of the Western taxpayer. With the end of the U.S. Government's Lend-Lease programme after WWII, which transfused $11 billion in military aid to the Soviets, the bankers reverted to the core mechanism it has used to build foreign dictatorships: Bank loans. Western (mostly American) taxpayers have bailed out the Soviets with hundreds of billions of dollars.

 

Before the Revolution, the Ukraine was the bread basket of Europe. Afterwards Russia could not produce enough food to feed itself and has relied on millions of tons of subsidized food imports from the West. As Lenin recognized, the capitalists would have to make the rope with which the communists could hang them.(10)

The Western military-industrial complex helped to build Eastern-Bloc heavy industry, from oil-drilling equipment to chemical processing plants, air-traffic radar systems, equipment to produce precision bearings, helicopter engines, laser technology, truck plants and nuclear power plants. The German company, Junkers Aircraft , literally created Soviet air power. Acknowledging this apparent contradiction between geo-politics and international business, Secretary of the Navy, John Lehman, addressed the graduating class at Annapolis in 1983:

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.(11)

These facts demonstrate that the Cold War and post-Cold War era concepts are invalid in terms of economics. The same financial system has always operated. The change of communists to 'social democrats' after the fall of the Berlin Wall was simply a name change aimed at persuading the Western public to believe that the world is becoming more liberal and democratic. In fact, the bankers now own everything of significance in communist and capitalist countries alike. It is no coincidence that the purported demise of the Soviet Union began at the end of the 1980s to coincide with the admission of the Soviet Union into the World Bank/IMF club.

 

According to the World Bank's website:

It was only after radical changes had been made in the country's policy in the late 1980s that the Soviet leadership began to show interest in establishing ties with the World Bank and the IMF. The meeting of the Group of Seven in London in 1991 resulted in the admission of the Soviet Union to these international organizations as an associate member.(12)

Rather than a change of policy, this was actually putting the same old policy into high gear. Senior oligarchs in the communist party and the KGB simply stole the country's oil and gas industries during the economic chaos of the 1990s. More of Russia's assets are now open to foreign buyers. Witness BP's recent deal to merge its Russian oil assets with TNK, a big private oil company jointly owned by billionaires Mikhail Fridman and Viktor Vekselberg.

 

The BP deal gives the combined company an enterprise value of around $18 billion. Russia now has one of the largest number of billionaires in the world and possibly the highest billionaire-to-GDP ratio in the world according to Forbes Magazine.(13) At the same time Royal Dutch / Shell announced a $15 billion investment in Russian gas production and a gas pipeline to northern Europe.(14)

In his book Globalization and its Discontents former World Bank chief economist, Joseph Stiglitz, describes how the privatization programme in Russia led to a robber baron economy and a catastrophic decline in GDP. Surprisingly, Stiglitz views this as yet another sorry mistake by an ideologically motivated World Bank/IMF. By 1992 $50 billion in loans and aid from various western sources rained down on the former Soviet states only to disappear without trace. In 1998 a Group -of -Seven/ IMF meeting authorized a $22 billion bailout. In 1999 it was discovered $20 billion had been stolen by Russian officials.(15)

Amnesty International currently has a major campaign for basic human rights in Russia. Torture is still institutionalized, anyone, even a child, who is taken into police custody for questioning is at risk of torture and ill-treatment. Methods of police torture commonly reported include beatings, electric shocks, rape, the use of gas masks to induce near-suffocation, and tying detainees in painful positions.

 

Up to a million men, women and children are in prisons and pre-trial detention centers in the Russian Federation, many are held in conditions that amount to cruel, inhuman and degrading treatment. Conditions are particularly harsh in the pre-trial detention centers owing to chronic overcrowding. Cells are filthy and pest-ridden, with poor lighting and ventilation, and contagious diseases are rife (over 100,000 inmates have tuberculosis).

 

Tens of thousands of children in Russia are languishing behind bars. Children also suffer torture and ill treatment in pre-trial detention centres and prisons. Since coming to power, Vladamir Putin has recently strengthened the FSB, the old internal security arm of the KGB, inhibited free speech, pursued politically motivated persecution of businessmen and pursued a four year war of aggression in Chechnya involving substantial atrocities against civilians.(16)
 

CHINA

The communist revolution in China was also backed by Wall Street. In 1946, The American Government imposed an arms embargo on the Nationalist Government when it was on the verge of defeating the communists. Congress voted to send millions of dollars of arms to the Chinese government but the aid was deliberately delayed for months. When it did arrive, the rifles didn't have any bolts in them and were useless.(17)

China joined the World Bank/IMF in 1980. By 1996, it was the largest recipient of World Bank loans. With Western dollars, China has purchased power-generating equipment, oil-field exploration, fleets of jumbo jets, steel mills, satellite communications systems and huge amounts of high-tech military hardware.(18)

 

Three years ago, Bill Clinton authorized Donald Rumsfeld's company ABB Inc. to sell two light water nuclear reactors to North Korea.(19) Starting in 1996, Russian and Chinese military units began to purchase U.S. made super-computers for nuclear weapons research. These super-computers can run American nuclear bomb design software and codes with little or no modification. They are identical to the computers at U.S. weapons labs right down to the vendor support.(20)(21)

Despite the fact that China has substantial trade with the West, evidenced by all the consumables in our shops which are made in China, Amnesty International details human rights abuses on a massive scale:(22) The continued use of the death penalty during the ongoing "strike hard" campaign resulting in high numbers of executions, often after unfair or summary trials; the continued use of 'Re-education through Labour', a system which allows for the detention of millions of individuals every year without charge or trial in contravention of international human rights standards; the persistence of serious allegations of torture and ill-treatment within China's criminal justice system, including police stations; and increasing arrests and detentions of Internet users or so-called "cyber-dissidents" in violation of their fundamental rights to freedom of expression and information.

 

Joseph Stiglitz states that China began its transition to a market economy in the late 1970s(23) but the one-child policy, first adumbrated by Deng Xiaoping in 1979, was in place nationwide by 1981. The 'technical policy on family planning', still in force today, requires IUDs for women of childbearing age with one child, sterilization for couples with two children (usually performed on the woman), and abortions for women pregnant without authorization. By the mid-eighties, according to Chinese government statistics, birth control surgeries-abortions, sterilizations, and IUD insertions-were averaging more than thirty million a year.

 

Many, if not most, of these procedures were performed on women who submitted only under duress.(24)
 

CONCLUSION

The Western cartel has supported the bloodiest regimes in human history all in the cause of financial globalization and the New World Order. The next chapter shows that the same game has been played in developing countries throughout the world.
 

Chapter 4 End Notes

1. UC Atlas of Inequality. 1999 statistics of GNP per capita. See http://ucatlas.ucsc.edu/gnp/gnppl.html

2. Hernando De Soto, The Mystery of Capital, (New York: Basic Books, 2000). See see also the article by Dr Michael Coffman, Why Property Rights Matter

3. De Soto, op cit., p.6

4. G. Edward Griffin, The Creature from Jekyll Island, American Media, Fourth Edition, 2002, p.295

5. Anthony C. Sutton, Wall Street and the Rise of Hitler, GSG and Associates, 1976, p.93

6. Griffin,op cit., pp.285-6

7. Sutton, op cit., p.170

8. Griffin, op cit., p.274

9. Ibid p.292

10. Ibid pp.296-299

11. Ibid p.303

12. The World Bank Group in Russia, The World Bank Group. See http://www.worldbank.org.ru/ECA/Russia.nsf/ECADocByUnid/A729CBDBA81E84EF85256C45005D369F?Opendocument  

13. Paul Klebnikov, Out of Russia's ashes--treasure, Forbes Magazine, 17 March 2003. See http://www.forbes.com/global/2003/0317/074.html

14. Royal Dutch/Shell and BP expand to Russia, Chemical Newsflash, sponsored by BASF AG, 24 June 2003, http://www.chemicalnewsflash.de/en/news/010703/news2.htm

15. Griffin, op cit., pp.129-130

16. Amnesty International briefing on the human rights situation in the Russian Federation. See http://www.amnesty.org/russia/briefing.html

17. Dr. Stanley Monteith, The Brotherhood of Darkness, Hearthstone Publishing, 2000,

18. Griffin, op cit., p.301

19. Randeep Ramesh,The two faces of Rumsfeld, The Guardian, London, 9 May 2003. See http://www.guardian.co.uk/korea/article/0,2763,952289,00.html

20. Charles Smith, Brokering our own demise, WorldNetDaily, 30 November1999. See http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=20542

21. Charles Smith, China and covert nuclear commerce, WorldNetDaily, 11 May 1999. See http://www.worldnetdaily.com/news/article.asp?RTICLE_ID=20512

22. Amnesty International, People's Republic of China: Continuing abuses under a new leadership - summary of human rights concerns, 1 October 2003. See http://web.amnesty.org/library/Index/ENGASA170352003?open&of=ENG-CHN

23. Joeseph Stiglitz, Globalization and its Discontents, Penguin Books, 2002, pp.117-118

24. Steven W. Mosher, President Population Research Institute, China's One-Child Policy: Coercive from the Beginning. Testimony Submitted to the International Relations Committee of the U.S. House of Representatives for the Hearing on "Coercive Population Control in China: New Evidence of Forced Abortion and Forced Sterilization," 17 October 2001. See http://www.pop.org/main.cfm?EID=305

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