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CHAPTER 3:
Franklin D. Roosevelt
World War II as a managed conflict on behalf of the
financial oligarchy
The Rise of FDR
The Managed Conflict
Post-War Consolidation
Financial Exploitation
The Crash of 1929 and the resulting depression have been exhaustively covered in a previous work (Secrets of the Federal Reserve, 1983). Roosevelt was elected president in 1932 in a campaign which ignored Hoover’s Rothschild connections and his World War I record. Instead, Roosevelt blamed Hoover for a depression which had been set up by the Bank of England. Hoover states in his Memoirs.
“In replying to Roosevelt’s statement that I was responsible for the orgy of speculation, I considered for some time whether I should expose the responsibility of the Federal Reserve Board by its deliberate inflation policies from 1925-28 under European influence, and my opposition to these policies.”
Hoover remained silent, and was ushered out of office. He later termed Gerard Swope’s “economic planning” for the New Deal as “the precise pattern of Fascism”. “The New Dealers”, by an Unofficial Observer, Literary Guild 1934, noted that the New Deal included W.A. Harriman, administrator in charge of heavy industry, and his sister, Mary Rumsey, who backed Newsweek with Vincent Astor, and the New Deal weekly, Today. “Observer” also noted that Col. House was the elder statesman behind the New Deal, and that House had only backed two Presidential candidates, Wilson and FDR. Roosevelt continued the Wilson policies (actually the House policies outlined in “Philip Dru, Administrator”), with the same personnel, and ended as Wilson did, by involving America in another World War. Observer states that Col. House’s New York apartment was only two blocks from the Roosevelt home on E. 65th St. in New York, and that House was seen there almost every day in 1932. He also visited Roosevelt in New England and on the Roosevelt yacht.
To consolidate Roosevelt’s power, his backers used the typical World Order scheme – they set up his “opposition”. In August, 1934, the principal architects and financiers of his New Deal formed the Liberty League, immediately characterized as an “extreme rightwing” organization. Pierre and Irenee DuPont put up $325,000 for it. The League was also financed by J.P. Morgan, the Rockefellers, J. Howard Pew, and William J. Knudsen (who was later appointed by FDR to an important position!).
The backers of Liberty League, who were busily denouncing Roosevelt & his staff as “Communist”, which many of them were, were also the organizers of American International Corporation, which had been formed to prevent the economy of the Soviet Union from collapsing. Liberty League successfully corralled the opponents of FDR and branded them as “rightwing nuts”. Roosevelt was given the opportunity to rant against his opposition as “economic royalists”, “the Old Guard”, and “princes of privilege”. Gerald L.K. Smith was then brought into the picture, in order to smear Roosevelt's opposition as “anti-Semitic”.
The ploy operated from 1934 to the 1936 elections, when it effectively destroyed London's campaign. No effective political opposition was organized against Roosevelt for the rest of his lifetime in office. It was one of the most successful political hoaxes in American history. Roosevelt then married his son to an heiress of the DuPont dynasty. At the very time that Eugene DuPont, cousin of Pierre, was one of the most active members of the Liberty League, F.D. Roosevelt Jr. was courting his daughter, Ethell ! They were married June 28, 1937, in what Time Magazine called the “Wedding of the Year”, presided over by Dr. Endicott Peabody. The couple made the cover of Time magazine, the only newlyweds ever to do so.
These measures were necessary because FDR's backers were planning to involve the U.S. in the Second World War. Any popular political opposition to Roosevelt might have swept him out of office in 1940, just when he was needed to bring off the Pearl Harbor attack. On the morning of Pearl Harbor, Gen. Marshall, his Chief of Staff, met secretly with Maxim Litvinov (married to Ivy Low of England), to assure the Russians that everything was going according to plan. Marshall later testified before Congress that he “couldn't remember” where he was on Pearl Harbor Day.
The “managed conflict” was well on its way.
Jacques Rueff points out that Schacht did not invent Hitler's monetary policy; it was imposed on Germany “by American and British creditors to finance war preparations and finally unleash war itself” (The Monetary Sins of the West). Rueff also points out that the Standstill Agreement of 1931 allowing Germany a moratorium on war debts through the 1930s was a amicable pact between the London, New York and German branches of the Warburg and Schroder houses. Max Warburg remained Schacht's deputy at the Reichsbank until 1938; Kurt von Schroder then became his deputy. (Schacht's father had been Berlin agent for the Equitable Life Insurance Co. of New York.) The industrialist levies for Hitler (the Circle of Friends) were paid into the Schroder Bank.
Throughout the 1930s, Hitler was duped into persevering in his desire for friendship with England, an alliance originally proposed jointly by Theodore Roosevelt and the Kaiser in 1898 between the three Nordic powers, England, Germany and the United States. The Schröders assured Hitler that their Anglo-German Fellowship in England was a hundred times more influential than it actually was. With such figures as the Astors and the Chamberlains supporting rapport with Germany, Hitler was persuaded that war with England was impossible.
In 1933 he had announced his discovery that Marx, Lenin and Stalin had all said that before international Communism could triumph, England and her Empire must be destroyed. “I am willing to help defend the British Empire by force if called upon,” he declared. In 1936, Hitler arranged for meetings to take place between English and German diplomats, but the desired result was never attained, as the British had only one goal to lull Hitler into a sense of false security until they could declare war against him.
To lure Hitler into World War II, it was necessary to guarantee him adequate supplies of such necessities as ball bearings and oil. Jacob Wallenberg of the Swedish Enskilda Bank, which controlled the giant SKF ball bearing plant, furnished ball bearings to the Nazis throughout the war. The anti aircraft guns sending flak against American air crews turned on SKF ball bearings. Its American plant, SKF of Philadelphia, was repeatedly put on the Proclaimed List, and each time, Dean Acheson removed it.
President William S. Farish of Standard Oil refueled Nazi ships and submarines through stations in Spain and Latin America. When Queen Elizabeth recently came to the U.S., the only family she visited was the Farishes. Throughout the war, the British paid royalty to Ethyl-Standard Corp. on the gasoline used by German bombers who were destroying London. The money was placed in Farben bank accounts until after the war. I.G. Farben was organized by the Warburgs in 1925 as a merger between six giant German chemical companies, Badische Anilin, Bayer, Agfa, Hoechst, Welierter-Meer, and Griesheim-Elektron. Max Warburg was director of I.G. Farben, Germany, and I.G. Chemie, Switzerland. American I.G. Farben was controlled by his brother, Paul, architect of the Federal Reserve System, Walter Teagle of Standard Oil, and Charles Mitchell of National City Bank. Just before World War II broke out, Ethyl-Standard shipped 500 tons of ethyl lead to the Reich Air Ministry through I.G. Farben, with payment secured by letter of Brown Bros. Harriman dated Sept. 21, 1938.
Throughout World War II, the Paris branches of J.P. Morgan and chase National Bank continued to do business as usual. At the end of the war, occupation authorities repeatedly issued orders to dismantle I.G. Farben plants, but were countermanded by Gen. William Draper of Dillon Read, which had financed German rearmament in the 1920s.
Winston Churchill remarked of this “managed conflict” in 1945, just before it ended, “There never was a war more easy to stop.” (quoted in Washington Post June 11, 1984). The only real difficulty had been encountered in getting it started. Churchill succeeded in prolonging the war for at least a year by defeating Gen. Wedemeyer's plan for a Channel crossing in 1943, and by embarking on his ruinous North African-Sicilian swing, a replay of his disastrous Gallipoli campaign of the First World War.
Life revealed April 9, 1951 that Eisenhower had radioed Stalin through the U.S. Military Mission in Moscow of his plan to stop at the Elbe and allow the Russians to take Berlin. The message had been written by Ike's political advisor, John Wheeler-Bennett of RIIA, received by W. Averill Harriman, and delivered to Stalin. In Washington, Gen. Marshall assured President Truman that we were “obligated” to allow the Russians to take Berlin. Senator Joseph McCarthy later called Marshall “a living lie”.
The conquered German people were now systematically looted and ruthlessly governed by the occupying powers. Henry Kissinger, John J. McCloy (son-in-law of a J.P. Morgan partner), Benjamin Buttenweiser, partner of Kuhn, Loeb & Co. (his wife was Alger Hiss's lawyer at his trial for perjury), and other Rothschild operatives descended like locusts upon the prostrate nation.
Aid to Soviet Russia continued under the guise of the Marshall Plan, a rerun of Hoover's Belgian Relief Commission in World War I. The Marshall Plan originated as a special study by David Rockefeller for the Council on Foreign Relations, “Reconstruction of Western Europe” completed in 1947. It was retitled the “Marshall Plan” and advertised as a great contribution to “democracy in Europe”. (Imperial Brain Trust-Shoup). W. Averell Harriman was installed in the Rothschild's Paris mansion, Hotel Talleyrand, as head of the Marshall Plan.
The victorious Rothschilds consolidated their control of world monetary systems by the Bretton Woods pact, a replica of the charter of the Bank of England. It provided immunity from the judicial process, its archives were inviolable and not subject to court or Congressional inspection; no taxation could be levied on any security dividend or interest of the Fund; all officers and personnel were immune from legal processes. The pact systematically looted Western Europe and the United States.
On April 3, 1984, AP reported that “British” investments in the U.S. were now $115 billion, and the British held $28 billion in U.S. bank assets. At least one U.S. Senator is a member of the British aristocracy, Malcolm Wallop, (R. Wyo.) son of Hon. Oliver Wallop, whose brother is Earl of Portsmouth (created 1743). Sen. Wallop's sister, Lady Porchester, married Lord Porchester, son of the Earl of Carnarvon. Lord Porchester is the Queen's Master of Horse, and her Racing Manager.
Lord Carrington, for many years British Foreign Minister, is now Henry Kissinger's partner in Kissinger Associates, and was recently appointed head of NATO. He is chum of GE chum Australian New Zealand Bank, director of Rio Tinto, Barclay's Bank, Cadbury Schweppes, Amalgamated Metal, British Metal, and Hambros Bank. His mother was the daughter of Viscount Colville, who was financial secretary of the treasury 1936-38.
Richard Davis notes in “The English Rothschilds” that Lionel Rothschild was a frequent visitor at Lord Carrington's house in Whitehall. In fact, Lord Carrington was related to the Rothschild family by marriage. The first Lord Carrington was Archibald Primrose. His son became Viscount Rosebery. The 5th Earl Rosebery married Hannah Rothschild, daughter of Mayer, in 1878. She was given away by Disraeli.
World War II delivered the peoples of the world into the hands of the World Order, with the predictable result that they have been systematically despoiled, terrorized, oppressed and massacred in further “managed conflicts”, not the least of which was the Vietnam War, in which American boys with little or no combat training were sent into battle against the highly trained guerilla troops of Ho Chi Minh and General Giap, communist troops whose leaders had been intensively trained by the special OSS Deer team.
The Rothschilds rule the U.S. through their foundations, the Council on Foreign Relations, and the Federal Reserve System, with no serious challenges to their power. Expensive “political campaigns” are routinely conducted, with carefully screened candidates who are pledged to the program of the World Order. Should they deviate from the program, they would have an “accident”, be framed on a sex charge, or indicted on some financial irregularity. Senator Moynihan stated in his book, “Loyalties”, “A British friend, wise in the ways of the world, put it thus: They are now on page 16 of the Plan.” Moynihan prudently did not ask what page 17 would bring.
The American citizen works hard and pays taxes, blissfully unaware that at any moment the secret rulers, operating through the Federal Reserve Board, can make a monetary ruling which will place him in onerous debt or bankrupt him. Gary Allen writes in American Opinion, Oct. 7, 1979, “Whatever the future holds, you can bet it will be unstable with wide swings in the value of the dollar and precious metals. As long as Volcker's sponsors know in advance what his policies will be, they will make big money.” This accurate prediction was followed by 20% interest and 25% inflation.
Businessweek, Feb. 20, 1984, stated,
“The worst market for traders is a stable one.... Investment banks now have a greater than ever vested interest in market instability. They can rack up enormous profits by guessing right about rapid, wide swings in profits, prices and interest rates.”
It is obvious that they can rack up “enormous profits” if they know in advance what the monetary decisions will he. Anyone who seriously believes that no one knows in advance what Federal Reserve decisions will be is too naive to be allowed out on their own; anybody who believes that there is no one who can tell the Federal Reserve Board what its policies are to be is even more out of touch with reality.
Many people believed that Lord Montagu Norman ran the Bank of England as a one-man show for thirty years, showing that some people will believe anything. A. Craig Copetas writes in Harper's, Jan. 1984, “How the Barbarians Do Business” about the 2,000 dealers of the London Metal Exchange, that viewing these people objectively, “you are left with a simple scrap merchant – a rag and bone man, as the British call their junk dealers.” It is the rag and bone men who are running the economies of the world up and down like a window shade, and profiting handsomely on every move of the markets.
Carter Field notes in his biography of Baruch, “Baruch got out of the market just before the Crash. But what made Baruch sell stocks and buy tax-exempts at such a favorable time?” Field offers no answer.
Norman Dodd, who was then with Bankers Trust, states that Henry Morgenthau came into Bankers Trust a few days before the Crash, and ordered the officers to close out all securities of his trusts, $60 million, in three days. The officers tried to remonstrate with him, pointing out that if he would sell them over a period of weeks, he would make much greater profits, perhaps five million dollars more than if they were disposed of on such short notice. Morgenthau became furious, screaming at them, “I didn't come here to argue with you ! Do as I say!” Black Friday occurred within the week.
On May 30, 1936, Newsweek wrote about a Roosevelt appointee to the Federal Reserve Board, Ralph W. Morrison,
“He sold his Texas utility stock to Insull for ten million dollars, and in 1929 called a meeting and ordered his banks to close out all security loans by Sept. 1. As a result, they rode through the depression with flying colors.”
The insiders come through “with flying colors”, while millions of victims are ruined, destroyed by forces which they refuse to believe exist. Heartbreak, losses of homes and businesses, breakdowns, suicides, destruction of families, these are the results of World Order economic policies initiated and carried out by “the rag and bone men”.
Through its monetary command to the Federal Reserve Board, the World Order determines the outcome of American elections. A news commentator recently pointed out that Paul Volcker would determine whether Reagan would be re-elected. In 1980, the Federal Reserve Board deliberately defeated Carter and elected Reagan. Otto Eckstein noted in U.S. News, Sept. 5, 1983, that the prime rate reached 21.5% in late 1980, creating a recession in an election year. Eckstein, head of Data Resources in Lexington, Mass. (he later died suddenly), said, “The Federal Reserve had never before made such a move.” Only the World Order knows whether the Federal Reserve will ride Reagan back into office in 1984 on a high tide of prosperity, or throw him out as the new Herbert Hoover. The more likely prospect is that he will be the Herbert Hoover of 1986 or 1988.
One critic pointed out that Volcker has boosted interest rates, which hurts U.S. stocks, making short term U.S. money instruments more desirable than long-term, and bringing about the very instability of foreign capital flows which he claims to fear. Gordon Thether writes in The London Financial Times,
“In all history, there can be fewer instances of a man having inflicted greater damage on the interests of his fellow human beings than Volcker has done with 'benigh neglect' and its all too many malignant manifestations – not the first of which is the ill-conceived gold demonetization campaign Washington has been engaged in since the late 60s. Interest rates rise when gold does not back currency.”
Through the London Gold Pool, the Federal Reserve System and the U.S. Treasury disposed of American gold at the giveway price of $35 an ounce, one tenth of its current value, robbing the American public of billions of dollars. On July 24, 1969, Volcker authorized SDR paper gold, Special Drawing Rights, to replace gold in foreign exchange. He then triumphantly remarked to his fellow bankers in Paris, “Well, we got this thing launched.” Secretary of the Treasury Connally then took the Nixon Administration off gold, devaluing the dollar in August, 1971.
On July 17, 1984, Jack Anderson described the Federal Open Market Committee in the Washington Post as “a mysterious council of 12”, “the enigmatic group” with “excessive secrecy” who, says Anderson, “influence what rates you will pay, how much money will be available for business to borrow and whether inflation once again will eat up your earnings and reduce the value of your bank accounts.”
Despite the far-reaching importance of “Volcker's” decisions, his testimony before Congress is shrouded in gobbledy-gook; this writer has gone through hundreds of pages of his testimony without finding a single quotable phrase about his economic intentions. On July 9, 1984, Jack Anderson said of Volcker's meetings with high Treasury officials, “One of them, asked if he could recall anything Volcker had said during the high-level meetings, thought a moment and replied, ‘I can't remember anything he said that I understood'.”
Sen. Moynihan noted in the New Republic, Dec. 31, 1983,
“The Fed does not control the precise money supply and cannot precisely determine interest rates. But it can set the direction and range for both, and this it did. Anyone who tried to dissent was soundly rapped. Its two dozen or so central bankers decided to bust the economy, and bust it they did.”
Paul Craig Roberts writes in Businessweek, Feb. 27, 1984,
“Whatever Volcker's intentions, the empirical data show that there has been a deceleration in money growth since last spring and that the Fed has been using open market operations to keep interest rates up.... What concerns the financial markets is the eclipse of Reagan's policies by Volcker's.... the most likely result will be higher taxes and higher deficits.”
Nevertheless, the press and the Democrats attack Reagan as responsible for the deficit, over which he has no control, and which Volcker creates.
The New York Times stated that whoever won the election in Nov. 1984, it has already been decided that taxes will be increased by $100 billion. Here again, why have an election of elected officials who have no influence in economic affairs ? Brunner recently interviewed Walter Wriston, retired head of Citibank, who said,
“I have been through the Fed's actions for the past fifteen years in detail – the Fed has exercised a malign influence on the economy of this country. Its interference in the financial markets of America over the last decade has resulted in persistently excessive money growth, inflation which undermined the financial strength of U.S. corporations owing to the combined inflation and excessive rates of taxation, and record debt.”
Forbes pointed out June 20, 1983 in a story about “Tony” Solomon, “Solomon may be the most important man in the Federal Reserve System after the chairman, and what he says and does has an effect upon us all.”
Perhaps you have never heard of “Tony” Solomon. Certainly you have never voted him into any office, yet what he says and does has an effect upon us all. He is the chairman of the Federal Reserve Bank of New York, a post formerly held by Paul Volcker. This bank represents the New York money market in the Federal Reserve System. Fifty-three per cent of its stock is held by five New York banks whose controlling influence is the London House of Rothschild.
The chairman of the FRBNY sits permanently on the FOMC at the right hand of the chairman of the Board of Governors. Sec. 12A of the 1913 Federal Reserve Act provided that five representatives of the 12 Federal Reserve Banks should rotate on the FOMG. This was quietly amended in August 1943, while World War II was raging, to read, “one elected annually by the board of directors of the Federal Reserve Bank of New York” replacing the provision that “one should be elected annually by the boards of directors of the Federal Reserve Banks of Boston and New York”. FRBNY is now the only Federal Reserve Bank with a permanent seat on the FOMC. The American public was never informed of this change.
Copyright © Eustace Mullins