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Transcript of THE DARK MODERN AGE - A Farewell to the Enlightenment
Dr Janos Drabik
1
THE DARK MODERN AGE
A Farewell to the Enlightenment
٭٭٭
On the author
Dr. János Drábik is the retired leading programme editor of Radio Free Europe.
He was born on 9th
June 1938 in Budapest. Initially he planned to become a cello
player. He followed musical studies at the “Erkel Ferenc” Secondary School of Musical Art in
Budapest as the pupil of Ede Banda, where he took the final examination in 1956.
Nevertheless, due to breaking his hand, he was forced to change career. In 1960 he graduated
from the Faculty of Political Science and Law of the “Eötvös Loránd” University of Sciences
(ELTE) of Budapest, then from the Faculty of Humanities of the same university. In 1971 he
took the final examination of lawyer – legal consultant, and previously he also graduated from
the School of Journalism of the National Federation of Hungarian Journalists (MÚOSZ).
Until November 1979, he worked in various legal, editorial and state administration
jobs. Prior to his leave to America, he was the chief of legal department of ERBE. He
continued his studies at the New York University and in 1981 he became a registered legal
consultant in New York State. In 1983 he went to Munich, Germany, being employed at
Radio Free Europe, where he wrote and edited several programmes under the name of Pál
Kézdi. Among others, he wrote serials about Stalinism, the Constitution of the USA, neo-
conservatism and on the history of Soviet Union. For five years, he edited the world economy
magazine and the programme titled “On the Western Road” which analyzed the functioning
of democratic institutions. In February 1989, the President of Radio Free Europe and Radio
Liberty conferred to him the “Superior Performance Award” for his performance delivered in
the year 1988, primarily for his 32-part serial about the Constitution of the USA.
Beginning from 1983, he took an active part in the activity of the Széchenyi Circle in
Munich, where he delivered several presentations and lectures. Between 1993 and 1998 he
was the Secretary of Széchenyi Circle. He was a regular author of the paper “Nemzetőr”
(National Guard) published in Munich and of other Hungarian daily newspapers and weekly
magazines. He is the deputy editor-in-chief of the “book newspaper” titled “Leleplező”
(Unveiler) issued since 1999. He regularly delivers lectures on the interrelation between
human-centered society, democracy and monetary system. He is the founding member of the
federation “Összefogás a Fennmaradásért Szövetség” (Union for Survival) formed in 2000,
the objectives of which are the preservation of Hungarian land, the creation of the conditions
for a “Garden-Hungary”, the restoration of Hungary’s economic and financial sovereignty, the
achievement of the participation democracy, the extension of the powers of the referendum as
well as the necessity of treating the money as the public institution of basic importance of the
nation.
His book titled “Why Did the Three Kennedys Have To Die?” was published in 2002.
It was followed, in the same year, by the first volume of the “Usury Civilization” and then, in
2003, by the second and third volumes. The three-volume “Usury Civilization” was already
sold in several editions. In 2004, his book titled “Consciousness Modification” was issued,
which calls the attention to the dangers of brain manipulation. The process of the creation of a
world order controlled from a single centre is analyzed in his collected studies titled “New
World Order? World Dead-End”. In 2005, his book titled “1956 – The Third Way of the
Dr Janos Drabik
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Hungarians” was published, in which he looks for a way out from the dead-ends of the
Communism and of the money rule. His book published also in 2005, titled “The Dictatorship
of the Money” points out what advantages the restoration of the public money system might
bring over. In his book titled “World Democratorship” published in 2006, the author presents
in detail how the global gaining ground of the world democratorship system was made
possible by the aggressive spreading of the credit money monopoly. In 2007, in his work
titled “Orwellia”, he analyzed thoroughly the real superpower of our century, the money
power, the most powerful ruling group in the world. In his book titled “The Human-Centered
World Order”, he analyzes in detail how the malign and detrimental globalism can be
substituted by the benign and useful globalism serving the interests of the whole mankind, the
human-centered world order. His 2008 book, the “Turbulence”, is about the destructive
turbulence of the anti-life world forces, primarily of the unlimited money power, in which the
mankind fights its life-and-death struggle for survival. The “Change of Era” issued in 2009 is
a recommendation for the whole mankind concerning how a change of era, the new historical
era of the harmonic world order can be achieved with solidarity.
Between 1997 and March 2000 he was member of the BUOD presidium, the
Federation of Hungarian Associations in Germany, in 1996 he was elected into the steering
committee of the MVSZ (World Federation of Hungarians), where he represented the
Hungarians living in South Germany. In the 1998 parliamentary elections he was the
candidate of the KDNP (Christian Democrat People’s Party) in the election district nr. 1 of
Budapest. Since 2004, he is taking part in the activity of the presidency of a civil organization,
the Hungarian National Committee, which strives at the restoration of the force of the
Hungarian historical Constitution.
He is married, his wife is a chemist, scientific researcher.
Contents
Contents………………………………………………………………………………. 1
Preface ……………………………………………………………………………….. 9
What kind of world order will be born from the financial chaos? ……………... 17
The “New World Order” strategy of the global elite is in danger………………...… 18
What would a real change of regime be in Hungary?. …………..……………….... 19
There is a need for Hungarian money covered with Hungarian work ……………… 20
A few reminders about what measures are necessary to be taken immediately …… 22
The money rule global elite at a crossroad ………………………………………. 24
The power organisms above nations are being enlarged.…………………………… 26
The deliberate destruction of world economy………………………………………. 29
How could we get out of the world financial crisis?..……………………………… 30
The secret of the banks’ success: making the clients indebted ……………………. 32
The orgy of the “money bubble barons” …………………………………………… 36
Globalization of the unscrupulous extortion and looting…………………………… 38
Even the “Greek crisis” is not Greek ………………………………………………. 41
The Islam is more moral…………………………………………………………….. 42
The new Banking Act of the United States ………………………………………… 43
The parasite European banking system …………………………………………….. 43
The credit of the IMF was needed for taking out the interest from the country…….. 45
From the Enlightenment to the bankruptcy of Liberalism ………………………….. 47
Dr Janos Drabik
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Is there life without ideologies? ………………………………………...................... 51
The original economic liberalism is ethical ………………………………………… 52
The annuity and the interest are a “free lunch” …………………………………….. 53
Who started the financial crisis in 2008? …………………………………………… 55
Neo-liberalism is anti-liberal ……………………………………………………… 57
Ethics and economy ………………………………………………………………… 58
Privatization of the profit, nationalization of the losses ……………………………. 61
Did the neo-liberalism fail? ………………………………………………………... 64
How does the money rule world order work? ……………………………………… 66
The King is naked – There is no need for banks in their current form……………… 68
There is a need for money substitutes ……………………………………………… 72
Instead of monetary feudalism, a harmonic world order! ………………………….. 72
The money rule can even turn into an open dictatorship …………………………… 77
What is the obstacle in the way of the dénouement? ………………………………. 80
The morality as the main economic factor………………………………………….. 84
A public money system is needed ………………………………………………….. 85
The “money barons” are playing poker
The background of the world financial crisis ……………………………………. 88
Why do the “money barons” keep blowing the speculation bubbles? …………….. 88
Can we soon expect for a world-scale collapse? …………………………………… 88
Who are the “money bubble barons”? .……………………………………………… 91
How does the money industry blow the trillion-dollar money bubbles? …………… 92
Goldman Sachs – the super speculator of the world ……………………………….. 93
The Goldman Sachs comes on the scene …………………………………………… 95
The second act in the Goldman Sachs speculation play..…………………………… 97
The Goldman Sachs played the main role also in the real estate speculation …….. 101
The petrol bubble – the fourth scene of the global money cabaret………………… 104
The subvention bubble – falsification of the financial rescue operation of the state..108
Global warming – the newest speculation bubble ………………………………… 111
Which were the applied speculation strategies? …………………………………… 113
Con trick nr. 1: The “Swoop and Squat”…………………………………………… 113
Con trick nr. 2: The “Dollar Store” ………………………………………………... 115
Con trick nr. 3: The “Pig in the Poke” …………………………………………….. 116
Con trick nr. 4: The “Rumanian Box” ……………………………………………... 117
Con trick nr. 5: “The Big Mitt” ……………………………………………………. 119
Con trick nr. 6: The “Wire” ………………………………………........................... 120
Con trick nr. 7: The Reload………………………………………………………… 122
A financial nuclear bomb: “Naked-shorting” ……………………………………… 124
The Prime Brokerage on the top …………………………………………………... 133
Attack against the Lehman Brothers ………………………………………………. 134
Matt Taibbi and the money power ………………………………………………… 136
Goldman Sachs – The “veterinary surgeon’s horse” of the money rule world order 138
The political power, which is more powerful than the governments ……………… 141
The SEC starts an investigation against Goldman Sachs …………………………. 144
Attempt for the re-regulation of the state supervision of the money system …..…. 146
What can Obama’s crisis management show up? ……………….………………… 151
Will there be a new financial world order? ……………………………………….. 153
What does China suggest for the solution of the financial crisis? ………………… 158
Dr Janos Drabik
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How did the world financial system become a gambling casino? ……………... 160
World Economic Forum Annual Meeting 2010, Davos …………………………... 160
What caused the collapse of the money system? …………………………………. 164
The credit money with virtual coverage takes the lead ……………………………. 165
The money cartel is also in command of the EU ………………………………….. 167
The money cartel has expropriated also the affairs of state ………………………. 168
The bankers were forced to defence in Davos……………………………………... 169
What is the real cause of the conflict between Jews and Gentiles? …………… 174
Ravage: “A Real Case Against the Jews” ………………………………………… 174
The Jew as the representative of the Gentiles……………………………………… 181
Revilo P. Oliver on the causes of the success of the Christianity ………………… 190
Gustav Ruhland on the disintegration of the economy of the Roman Empire ……. 192
Capitalism is the system of the legalized interest and usury ……………………… 194
How did the financial and economic situation evolve in the Roman Empire? …… 196
The social and economic teachings of the Jewish world view ……………………. 199
The Old Testament on the relationship between Jews and money ……………….. 200
The gaining of ground of the Western Christianity in the Roman Empire ……….. 202
Are the Christians the followers of Chrestos or Christos? ………………………… 205
When did the misleading of the Gentile world begin? ……………………………. 211
Philo of Alexandria and the Christianity…………………………………………… 218
The millenary strategy of the “chosen people” …………………………………… 219
What is the difference between the people linked to their homeland and the world-
wanderer people? …………………………………………………........................... 223
The Jews – the eternal separatists …………………………………………………. 227
Sincerely on the relationship of the Jews and Gentiles based on mutual respect … 232
Walter White’s interview with Harold Wallace Rosenthal in 1976 …………… 239
The first part of Walter White’s interview with Harold Wallace Rosenthal ……… 242
The Jewish belief and religion …………………………………………………….. 246
What did Rosenthal say about money power?...…………………………………… 247
Mind control and conditioning..……………………………………………………. 248
Manipulation of labour and industry ………………………………………………. 249
Getting the control over religion..………………………………………………….. 250
The picture is assembled and the connections are made clear…………………….. 251
The second part of Walter White’s interview with Harold Wallace Rosenthal …… 253
The Zionist power structure in the America of our days ……………………… 264
Zionist hegemony under single management………………………………………. 267
Globalization of the Zionist power ………………………………………………… 273
Are there any possible alternatives against the Zionist hegemony? ……………… 281
The “divine destiny” of Senator Chuck Schumer ………………………………… 285
Yehezkel Dror: “When survival of the Jewish people is at stake, there’s no place
for morals”…………………………………………………………………………. 287
Double standard everywhere ………………………………………………………. 290
Is it the modern “Samson option”? ………………………………........................... 291
Double standard and the world financial crisis …………………………................ 292
To what extent can the world financial crisis be linked to an ethnic group? … 297
Why exactly the Jews? ………………………………….......................................... 307
Dr Janos Drabik
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Israel Shahak – “the world's most conspicuous Jewish anti-Semite” …………….. 312
“When victims rule” ……………………………………………………….............. 316
Why is Israel Shamir unsatisfied? ………………………......................................... 319
Is the historical strategy of the Jews aggressive or defensive? …………………… 323
Organized Jewry and the Jewish supremacy………………………………………. 324
Gaza – a gigantic concentration camp ………………………………………….. 328
What happened on 31st May 2010? ……………………………………………….. 329
We must return to the public money system …………………………………… 332
The entrepreneurs should get the money, not the banks! (An interview with the author
made by Tibor Farkas for the Hungarian web newspaper “Ingatlannet”) ………… 332
About the Bilderberg Group, through the world crises to the wars (An interview with the author made by Veronika Takács for the 17
th June 2010 issue
of the Hungarian weekly magazine “Barikád”) ………………………………….... 337
What kind of values does György Surányi represent? ……………………….... 343
Who should pay the costs of this? ………………………………………………… 351
Deliberately misinterpreting of the meaning of the words is life-threatening ……. 354
The Hungarian people is Hungarian people only together with the Hungarian
land!.................................................................................................................. 358
The Single Payment Scheme ………………………………………………………. 359
How can the agricultural land be kept in national property? ……………………… 361
Interview with János Drábik
(A preliminary interview for the conference “Vision of the World – Battlefield of the
21st Century – The Stock Exchange” held at the International Business School in
Budapest, on 12th
June 2010) ……………………………………………………… 367
The Hungarian people also deserves ethnic borders (An interview with the author made by Veronika Takács for the 10
th June 2010 issue
of the Hungarian weekly magazine “Barikád”) ………………………………….... 371
Preface
As Hungarians and Europeans, we now bid a sad farewell to the Enlightenment. In
secret, we hope that this hopeful era of the light of the spirit left us only temporarily.
Nevertheless, the evolution of the anti-Enlightenment that, at present, seems to be
unstoppable, signals that the new era of the “endarkening” of the human spirit, morality and
culture – of the general decay of the Western civilization – has not only begun, but is even
pressing forward more and more powerfully. If we do not manage to create new ownership
relations, linked to natural persons and their own performance, as well as to shift from the
money rule system to a natural economic order, we shall have to be in need of the new era of
a harmonic world order, of the light and brightness, of the prevailing of the universal morality
for still a long time.
Dr Janos Drabik
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In the history of the world, the Renascence and the Enlightenment, gradually, put an
end to the so-called Dark Middle Ages. Through bloody wars of religion, the peoples of
Europe lived over both the Reformation and the anti-Reformation. Nevertheless, in the first
decade of the 21st century, the denying of the ideas of the Enlightenment, the annihilation of
its achievements, and the destructive effect of the anti-Enlightenment developed more and
more perceivably. All that Oswald Spengler foresaw in his major work “The Decline of the
West” and George Orwell in his famous works “Animal Farm” and “Nineteen eighty-four”
was achieved in front of our eyes. We are facing that the general decay of our civilization has
accelerated as a consequence of the gaining ground of the anti-Enlightenment.
The hopeful period of the Enlightenment, comprising two and a half centuries, ended
not completely unexpectedly around the end of the millennium. The change of era was
already forecast by the more and more frequent and greater and greater financial, economic
and political crises, the perpetual local conflicts, the big and small wars. In our days, we can
already experience that the thunderclouds of the era of darkness and decay are gathering
above mankind. Unfortunately, even the possibility of a nuclear war cannot be totally
excluded.
The world-ruling elite has gradually annihilated the achievements of the
Enlightenment, and then has introduced the financial rule world order. This order is the
dictatorship of the money empire over nations, leaning on the power economy and masked as
democracy. The global system controlled from one single centre is already in fact (de facto) a
nearly completed reality. Nevertheless, formally (de jure), some smaller adjustments,
finishing operations are still to be done, until the Great Work is finished: the New World
Order, one of the variants of the Global Union. Before this, the new financial world order
must be established, because the system based on the dollar, as the world currency, cannot be
maintained any longer, on the long run.
At present, everything is hidden by the dimness of the faceless money relationships,
and the bigot blindness of the superstitious belief in the eternality of the interest mechanism.
The autocracy of the delusions concerning the rule of money surpasses the stupefying effects
of the darkest dogmas of the Dark Middle Ages, effects that paralyze the spirit, and tie up the
freedom of action of the creative man. There is not even a word more about social progress.
The progressive modernization of the human relations has finished and has turned on the
reverse, the struggle for social justice has been terminated, and the solidarity, based upon
sympathy and compassion, does not prevail any more. Almost all values have got a relative
character and could be expressed in money, and, by this, they have become undervalued. The
bright sunlight of the human spirit is getting dimmer and dimmer, the validity of the universal
morality has weakened into a mere wish, and its feasibility into an uncertain utopia. The
European culture and the world historical top achievement of the white man – the social
market economy enforcing also the social justice – have ceased to exist. Only ruins remained
from the welfare state – the cathedral surpassing the overwhelming Gothic church miracles.
Europe has given up herself, and it seems that has definitively surrendered to her new
masters: the money rule global elite and to the transnational money cartel above states, which
expropriated the international supreme power.
The new era of the world history developing around the end of the century can be
characterized with three terms: enervated, morbid and decadent. This era carries the culture
of destruction, of disintegration and of death in itself. In this one-dimension order of value,
the human spirit has fallen deep under its own possibilities. The dim and confused
“humanism” stepping in the place of the universal morality, as well as the individualism
neglecting the community atomized the human communities and made them vulnerable
against the organized, aggressive and arrogant private power. The society of the Dark Modern
Age is enervated, because it is hardly capable of more than the weakening biological and
Dr Janos Drabik
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social reproduction. It has lost that vigorous dynamism, which was assured for it by the period
of the Enlightenment and progress. The Dark Modern Age is also morbid, since the
strategists of the New World Order propagate openly that the mankind presently amounting to
seven billion people should be reduced to half or even less. This means that the world ruling
elite has to create such conditions which will soon result in the considerable reduction of the
number of human beings on earth. Many reasons can be mentioned to support the stopping of
the explosion of population increase emerging in the 20th
century. The question is whether the
strategists of the population reduction count themselves among the survivors or among those
who must be eliminated. The Dark Modern Age is decadent, because its culture is
characterized by the cultural disintegration, the moral decay, the annihilation of social justice,
and by the general regression of the civilization. From the progression and modernization,
only the technical progress remained, which is frequently self-contained. A small group of
interest can expropriate for themselves the results of the work of all others, of the peoples of
the world. Hiding behind faceless money relations, they can continue the building of their
colonizing empire, reminding of a creeping thief. These robber knights of the Dark Modern
Age throw the peoples of the world into a slave-like dependence with getting them indebted
and collecting interest, and holding the mankind to ransom, especially the nations deprived of
the tools of auto-defence.
The two hundred years of modernity can also be characterized as the process of getting
into a dead-end. Not only the civilization of the West got into a dead-end. Nevertheless, the
symptoms of the disease became most obvious in this culture. The decline of the West was
accelerated by the fact that the religious dimension weakened and got unimportant in the
Western civilization. The secular liberalism drove out not only the classical mythologies, but
also banished the spiritual and cultural historical perspective, referring to the fact that they all
contradict the rational thinking, and they cannot be harmonized with the progress of science.
The extremely generalized (universal) concept of mankind, as well as the extremely atomized
(individualistic) concept of the individual have become a myth. We had to witness the
disappearance of the myths of Modernity. To our days, there is no such a system of ideas left
to the humanity in which it could still believe and could cramp on, and the perspective of
which it could still accept trustfully.
After the Dark Modern Age has set in, only the empiric sphere, the empirical world
tied down to the ground has remained, but, without a guiding order of value, even this has
become a mere marshland. The money rule world order tries to present its own order of value
as a timeless one, as if its rules were eternal truths valid for all times. Nevertheless, even the
ideologies offered by the rationalism overstrained beyond its frames proved to be nothing but
myths themselves. The socialist economic and political theory failed primarily in its
application in practice. But the theory of the capitalist and money rule economy failed either.
In our days, it is hardly arguable that even that assumption proved to be a myth, according to
which the “invisible hand” always steers the operation of the market into the good direction.
As a consequence of the general decay, even the words have lost their original meanings. The
speculators doing business carelessly on the money market are called “the market”, opposed
to the actors of the productive economy operating according to the principles of free
enterprise, who are competing with each other in a moral manner and undertaking even social
responsibility.
That assertion has also proved to be a delusion according to which the process of
globalization would be the greatest achievement of market economy. The globalization has
created such a world-scale power economy, in which a narrow money rule elite can enforce
its selfish particular interests. The myths of the rationalism appearing in the guise of science
could not explain, in a durable and convincing way, neither the reality surrounding the man,
nor his own world. Even in our days, we still do not have a comprehensive and convincing
Dr Janos Drabik
8
explanation about the universe, about the macrocosm surrounding the man and his own
microcosm. As a consequence of the over-expanded relativization, the modern mythologies
cannot be considered to be universal. The most different myths are permanently at war with
each other. None of them offers a solid frame of orientation, a reliable map and compass – a
useful intellectual-spiritual GPS – to the members of the society, within the amazingly
accelerated changes. Freedom, in essence, has become the prerogative of a small group
detaining money wealth and production wealth. And the individual freedom of the atomized
average man can be measured by weighing to what extent he is subjected to the money rule
and political structures surrounding him.
During the development of the Dark New Age, the different ideologies and utopias
mix together the effects of different myths. The ephemeral ideas lost their effect, because their
existence and future depends on the ever changing circumstances of the events. The
ideologies concerning equality, free market economy, a democracy based on ethics and
merits, as well as an economic, social and political globalization.
The Dark Modern Age brought the acceleration of the disintegration of the society for
our civilization. The cohesion of communities, the solidarity is the result of the integration
forces working within the whole of the society. The modern development, reduced to
technical modernization, removed these integrating powers from the society. The European
Enlightenment – to some extent, similarly to the Christian values – wanted to integrate the
individual man into the whole of the mankind. This, nevertheless, has led to something
inhuman, to the extreme atomization of the society and to the individualism that shakes off all
restrictions. The annihilation of the community and of the traditional values connected with
the community has accelerated. In consequence, the individual cannot develop optimally,
because a complete life can be lived only in a community. As a consequence of the started
disintegration of the natural communities, even the public power is not able to maintain the
order required by the population and to assure public safety.
The attempt to place the respect of law and legislation in the place of the traditional
values of the community was not successful either. The constitutional values linked to the
national community could not be substituted by the compulsion of artificial loyalty – without
affective commitment – to the written constitutions. Due to the interest mechanism at work in
the money rule world order, the exploitation of the natural environment – in fact the
destruction of the irreplaceable resources – is being increased unceasingly. It is not the growth
enforced by the interest, but the preserving of the irreplaceable resources that would be
necessary. But the power relations of the Dark Modern Age do not make it possible. The
ethics, as a social cohesive force, and the morality, as the relation of the individual man to the
universal moral values, have touched bottom in nearly all spheres of social life. That
endeavour of the modernization limited to technical development and of the money rule world
order, which attempted at endowing the exchange and usage relations, as well as the money
with moral authority, also failed. The human relations reduced to money are not able to
control the individual and community behaviour. On the other hand, the legislation, the so-
called “legality” only suggests that you can do anything, if you are not caught in and called to
account. Thus, the pretence, the secretiveness and the camouflage have become a norm. The
mania of secrecy, of classification, that has reached a morbid measure, settled down both on
public and private life.
All this does not mean that there is no alternative to the Dark Modern Age. The new
property system linked to the natural persons can make it possible to return to the rules of
universal morality. If we can link the size of the property available to the individual with the
performance of the natural person, the interest enforcing capacity of men can be approached
to each other. And, with the enforcement at equal scale of the own interests, the unselfish
ethic behaviour, based upon the mutual respect of interests, can be enforced even on the level
Dr Janos Drabik
9
of the society. Property is power. Property is freedom. Nevertheless, in order to achieve the
new property system, it is necessary to restore the public money system and to exclude the
interest mechanism from it. The money system – as it was proved by Silvio Gesell and István
Síklaki – can be operated well even without the interest mechanism. Furthermore, even on
international level, the “legal person jungles” created for the sake of different frauds and tax
evasions.
We can get out the Dark Modern Age by creating the harmonic world order. For this,
it is necessary to get duly acquainted with the elite of the money rule world order. This world
elite and its predecessors played a decisive role in the creation of the money rule relations of
the Dark Modern Age. It has come a public argument topic whether a certain ethnic and its
specific values play a decisive role in the establishment and operation of the current money
rule world order or not. Trying to answer this question, we face the extremely complicated
problems of Semitism and anti-Semitism. The “anti” prefix of the term anti-Semitism refers to
the fact that it stands against the Semitism, but we have rather little information about what
that it is against is, i.e. what Semitism is. That who doubts this, only has to type these two
words into the searching programme of his computer, and then to compare how many scores
he got for Semitism and how many for anti-Semitism.
He can perceive that there is an enormous quantitative and content difference between
the two notions. The rules of logics prescribe that, prior to dealing with the negation of
something, one has to examine what he really rejects. It is necessary to tell what Semitism is,
who the Semite and the Philosemite are. Which was the first? The Semitism or the anti-
Semitism? Which of them arouses the other? In the language of mathematics: which is the
independent and which is the dependent variable? The correct answer may enhance the better
understanding of who and why is against the Semites, and what do their criticizers, their
counterparts, i.e. the anti-Semites oppose in the Semitism, as a complex social phenomenon.
The writer of the present lines, therefore, feels it as his duty to make the relevant knowledge
public, leaning on the works of the most outstanding Jewish and non-Jewish scientists, public
personalities and researchers. On the basis of the law of action–reaction, most of them start
from the fact that the Semitism created the anti-Semitism as an answer. In our days,
nevertheless, the latter, in turn, already strengthens the Semitism, and became one of the
essential preconditions of its survival.
The recollection, the finding the way back to itself of the Hungarian nation in 2010
may help it to take up the fight, in the hope of success, with the Dark Modern Age and the
money rule world elite hiding behind it. The success of the Hungarian union incarnated in the
System of National Cooperation may lead to a larger union aiming at the Europe of Nations,
to the rebirth of the – transcontinental – struggle for social justice. This new European
solidarity, union could undertake again to create the social market economy based upon the
equality of chances and the freedom of enterprise. The way of the future – not only in Europe,
but in the whole world – is the returning to the original ideas of the Enlightenment and
progression, the establishment of the ethical democracy based upon the universal morality,
and of the harmonic world order based upon social justice. For this, nevertheless, a new
system of property – linked to natural persons and performance – is needed, which can be
created only through a long and hard struggle. Furthermore, it is necessary to demolish the
over-centralized financial, economic, political and armed power system of the globalism.
Firstly, we have to go back to the public money system so that we could get out of the Dark
Modern Age, and we could definitively leave behind us the culture of disintegration,
destruction and death, so that the shining light of the spirit could rise at last. The hope has
been given to us for the sake of the hopeless, but we cannot expect for a quick success.
And, finally, I would like to say a few words about the birth of my writings. At first,
there is always a central goal: to pass over knowledge about something important to the
Dr Janos Drabik
10
readers. Then the second question arises: how to do all this? So, there is a goal, an initial plan,
to which, then, the sources must be found, the information must be gathered, which, then,
must also be checked, and the writings containing the opposite opinion must be found. The
pros and cons must be confronted with each other. In our days, the electronically retrievable
information plays a greater and greater role besides the traditional sources. The building
bricks are available to nearly everybody. That who has a clear concept, can build the house
from them, that is he can write a book from the amount of information. For that person who
has not got such a concept, all this remains a mere pile of information.
Books are inspired by life itself. The person who continuously inquires, investigates
the events – trying to find what, why and how happened, what goals did the controllers of the
events follow, and what were they motivated by –, will discover more and more interrelations.
In order to be able to give answers to the questions, it is necessary to obtain the opinions of as
many as possible well-informed and reliable specialists. This way, the expedient scientific
research progresses and the fact-finding works are written. The present book, for instance,
was born from the question: who and why want to deprive the mankind of the achievements
of the Enlightenment? Therefore, we have to ask questions from the world permanently, and
then we shall never run out of answers.
Budapest, 1st October, 2010
Dr. János Drábik
What kind of world order will be born from the financial
chaos? The different possible solutions can be divided into two large groups according
to whether they strive at the preservation of the current money rule world order or, on the
contrary, at the establishment of a world order based upon social justice, so a qualitatively
different world order. The creation of the world system controlled from one centre and of the
connected “new financial world order” has constituted the important part of the world elite
strategy for many centuries. The transnationally organized private power, leaning on the
private ownership of the money system, wants to strengthen its ruling position, even globally,
with the establishment of a ruling structure above states.
In contrary with this, the harmonic world order based upon justice and equality
of chances will terminate the private money system, and will re-establish the public money
system both on national and international level. The essence of the public money system is
that the production of the – otherwise valueless, but necessary – signs (banknotes) that convey
the processes of the productive economy is not the private monopoly of a narrow and private
group of interest any more, but the unalienable right of the democratically elected and
politically responsible public power. With the restoration of the public money system, the
emphasis will be put again on the value-creating productive economy, and the mediating
medium of the economy, the money, this sign, will be subordinated to the productive
economy again. The issuing of money, as well as the regulation of crediting will become a
public service of the state again, which cannot be expropriated any more by a narrow and
private group for the enforcement of its selfish interests. The place of the values based on
individual selfishness of the money rule world order will be taken by the community values
Dr Janos Drabik
11
serving the social justice and public welfare. The extreme property differences make it
possible that the freedom based on the equality of chances can be distorted to be the freedom
of abusing the freedom, for some privileged persons.
With the restoration of the public money system, it can be achieved that the
result, the fruit of work should belong to the person who actually performed the work, and the
property should be primarily linked to natural persons and not to the owners hidden in the
faceless money relations and the legal person jungles. And, what is more, the size of the
property should be proportional with the output of these natural persons. These conditions
enforce the division of the wealth in a more proportional and more just way. Since the
property is power, the property correlated with performance can assure the more just
possibility of interest enforcement.
The “New World Order” strategy of the global elite is in danger
One of the main institutions of the money rule world elite is the New York-
based Council on Foreign Relations (CFR), which, since its establishment, influences
decisively the foreign and interior policy of the United States, and, through this, the whole of
the world policy. The leaders of this powerful body called “think-tank” held a conference in
Montreal in May 2010. The participants included David Rockefeller, the founder of the
Trilateral Commission (TC), one of the important sister institutions of the CFR, and the
actual organizer and controller of the TC, Zbigniew Brzezinski, professor of the Columbia
University, who is also known to have been Chief National Security Advisor to President
Jimmy Carter.
At this important conference of the world elite, Brzezinski warned the
participants about the fact that the political consciousness gaining global size, as well as the
internal fights emerged within the elite can jointly hinder the establishment of the “world
order controlled from a single centre”. Brzezinski explained that, in our days, the global
political leadership of the world had become “much more diversified unlike what it was until
relatively recently”. He referred to the rise of China as an important geopolitical factor, as
well as to the global controlling role of the G20. Nevertheless, the latter was “lacking internal
unity with many of its members in bilateral antagonisms.” The internal fight emerging within
the world elite hinders the efforts which strive to save the strategy serving the creation of the
global government. Therefore, this programme of world historical importance has to
experience failures continuously on almost every front.
Brzezinski also called the attention to another important factor, namely that
“for the first time in all of human history mankind is politically awakened – that’s a total new
reality – it has not been so for most of human history.” According to Brzezinski, “the whole
world has become politically awakened,” adding that all over the world people were aware of
what was happening politically and were “consciously aware of global inequities, inequalities,
lack of respect, exploitation.” “Mankind is now politically awakened and stirring,” said
Brzezinski, adding that this, in combination with a fractured elite, “makes it a much more
difficult context for any major power, including currently the leading world power, the United
States.”
On the conference, Brzezinski was asked if he thought the United Nations
Organization should be transformed into a “one world government”, to which Brzezinski
responded that the UNO expresses mostly the variety of the countries of the world, and can
create cooperation in only secondary questions, because it is based upon the fiction that all
member states have equal rights. Only the five members of the Security Council having veto
right are an exception. Brzezinski admitted clearly that humanity has undergone a political
Dr Janos Drabik
12
awakening is not a positive development in the eyes of the global elite striving to establish a
New World Order, and he was not happy with it at all.
Brzezinski exposed, already in 1970, how he imagined the New World Order, which
he called “technotronic era”. (The translator’s observation: the term “technetronic” was
misspelled, even in the title of the book, and it is referred to as “technotronic” in all
dictionaries and encyclopedias.) In his 1970 book titled “Between Two Ages: America’s Role
in the Technotronic Era”, Brzezinski wrote the following: “The technotronic era involves the
gradual appearance of a more controlled society. Such a society would be dominated by an
elite, unrestrained by traditional values. Soon it will be possible to assert almost continuous
surveillance over every citizen and maintain up-to-date complete files containing even the
most personal information about the citizen. These files will be subject to instantaneous
retrieval by the authorities.” The “elite” to which Brzezinski refers attended the Montreal
CFR conference.
More and more signs show that there is not only a rivaling at the highest level of world
elite, but even a situation similar to a state of civil war. In the latest months, the leadership of
the super-rich money dynasties underwent a generation change. The questions left open
include the fate of the dollar, the introduction of the new global currency, as well as the
creation of the structure of a new financial world system, which, in our days, is not possible
without, for instance, China, India and Russia. The possibility of a so-called “preventive
strike” against Iran must also be taken into account.
What would a real change of regime be in Hungary?
The Hungarian society was split in two by the fact that a disproportionately smaller
part of it appropriated the overwhelming majority of the national wealth for itself and for the
money cartel above states. The most valuable part of the national wealth taken away this way
was absorbed into the global stock wealth of the transnational money cartel exerting the world
power. As we have already made reference to it, property is power, and the majority deprived
of their national wealth has become powerless, who hardly has any interest enforcing
capacity. The political struggles of the past twenty years reflected – only in the upper region
of the political sphere – the process of becoming propertiless of the majority of the Hungarian
society, its general pauperization, and the regrouping of a larger and larger part of its income
to the international financial structures. The main representation of the latter in Hungary is the
Hungarian National Bank torn from the public power, made independent from its owner
according to the law, but depending very much from the structures of the money world.
The establishment of the System of National Cooperation without the basic change
of the property and ownership relations would remain only a beautiful wish. If the Hungarians
fail to create more just property relations, those social fault lines and front lines will remain,
which inalienably confronted with each other the two parts of the Hungarian society. One side
was formed by those cosmopolite, comprador and collaborator groups of interest, which
arrived from the mediocre technocrat layer of the nomenclature of János Kádár’s regime.
They could transform their contact capital into their own private property, with the –
frequently illegal – privatization of the public property. It was them who – by passing the
most valuable part of the national wealth into the hands of the transnational money cartel –
could get such hidden return service, which enriched them even more and, in the meantime,
impoverished the majority of the Hungarian society.
It is difficult to create the national unity among the selfish beneficiaries of the change
of regime and the losers of the change of regime. The conflict of interest between the looters
and the looted cannot be bridged with national rhetoric. This conflict can be eased somehow
Dr Janos Drabik
13
only by the at least partial regaining and more just redistribution of the national wealth. The
first step towards the regaining of the national wealth is the soonest restoration of the public
money system. Namely, the current private money system not only pours concrete upon the
unjust property relations, but associates them with the extremely unjust income relations.
There is no need that the Hungarian economy should operate exclusively with credit
money arrived from abroad, which, from the very first, arrives in the country charged with a
disproportionately high interest. The international money cartel forces its own money onto the
country through the central bank which is exclusively responsible to it. The Hungarian
National Bank (MNB) is in 100% Hungarian property, but it is controlled exclusively by the
money cartel – the money rule group of interest about which we have proved, in our writing
titled “The New World Order is born from chaos”, that it uninhibitedly loots the human
societies and the world economy. The MNB is, in fact, controlled by the Basel-based bank of
the money cartel, the BIS (Bank of International Settlements), together with the ECB, the
Frankfurt-based central bank of the European Union. The money cartel loots the countries and
the world economy with fraudulent methods. Therefore, it must be deprived of the exertion of
the monetary prerogatives. And also the monetary rights due to the Hungarian State must be
taken away from the money cartel!
There is a need for Hungarian money covered with Hungarian work
Nevertheless, until a really nationally committed government dares to make this really
revolutionary step, it would still be possible to operate at least a part of the Hungarian
economy with Hungarian money covered with Hungarian work.
Today, Hungary has only very scarce available material devices. In this case, it is
necessary to create extraordinary money resources, on the one hand for the establishment and
enlargement of the economic infrastructure, and, on the other hand, for research and
development and for scientific and technical innovation. Instead of the present-day MNB, a
new-type central bank is needed, which assures money for the real economy in such a way
that it would not cause inflation, since exclusively such projects can be financed from it,
which serve the building up of a production-increasing infrastructure, as well as the
technological modernization, the research and development and the innovation. This kind of
credit money creation can increase the capacity and productivity of the given economy
without indebtedness and interest payment. Nevertheless, the state should only issue money
with the condition that the economic actors would spend it strictly on the increasing of the
potential of the real economy.
We can overcome the current economic and financial state of emergency not by
restrictions, by the restrictive economic and financial policy urged, even today, by the IMF,
the international money cartel and the EU, but by the increasing of output. The current
fallback of the Hungarian economy is characterized by the fact that the internal (but also the
external) demand lags constantly behind the offer. And this, in turn, results in the further
decrease of production. The reaction to this of the Hungarian financial administration was that
it tried to eliminate or decrease the budget deficit, and, on the other hand, we can also witness
that they have decreased the amount of money in circulation with high rates of interest.
Nevertheless, the depression can be answered also in another way. The state should
finance infrastructure-developing and productivity-increasing projects, from public money,
from public credit. In times of depression, it is practical to spend the public moneys on
productive and infrastructure-developing projects, which are organized by the state. If, by
restoring the public money system, the state exerts the monetary sovereign rights, the
assurance of the money devices can be solved. Namely, the liquidity is an organizational and
Dr Janos Drabik
14
technical question. The issue bank controlled by the public power could already achieve the
credit enlargement necessary for the financing of the workplace-creating programmes and
investments. The actually utilized credits must make up only a fragment of the total sum
necessary for the financing of the workplace-creating programmes. It could even be possible
to introduce the large-scale application of the state-guaranteed commercial papers, which has
a valid legal background in Hungary.
The commercial papers that can be cashed and prolonged by the central bank are
suitable, combined with other financial devices and techniques, for the short-term financing of
workplace-creating and productivity-increasing programmes. These would exert their effect
quickly and effectively in Hungary. These programmes, organized by the public power,
increase the production by making use of the existing machine capacity, as well as the raw
materials and the fuels. By this, the demand for such goods increases. The financial status of
the enterprises will improve, and thus, with the solvency of the enterprises, the situation of the
commercial banks that offer them credits or manage their accounts will also get solid. A
further favourable effect is that the newly employed labour force would represent an
increasing effective, solvent demand towards consumption goods.
The primary credits, through the financing of infrastructure programmes, exert an
animating effect on the whole economy. This financial propulsive power would make it
possible for the state to transform the preliminary financing of the achievable programmes
into a long-term financing. According to the economists committed to the current money rule
world order, the financing of infrastructure programmes with state issue bank money can
cause inflation. According to the evidence of history – since these concepts were already
applied in Japan, in Germany even twice, in the United States and France, and, at present, in
China –, if the public credits are spent strictly on production-increasing and infrastructure-
developing programmes, it cannot cause inflation.
In fact, a capital development process is started. As a result of credit financing, real
economy values are created. Furthermore, the measure and pace of the production increase
surpasses many times the measure and pace of the credit enlargement. Of course, reasonable
programmes of economy are also necessary, but they must be connected with the economy-
developing programmes. This means a guarantee for the efficiency of the crediting and
investment policy. Nevertheless, the main tool is the assurance of credit, the saving only plays
a secondary role. Such a “Hungarian money covered with Hungarian work” programme
decreases the disproportionateness between the domestic demand and offer, making, by this,
the whole of the economy more equilibrated.
The key problem in Hungary today is: who controls the monetary policy? When the
financial collapse happened, with both its deliberate and additional consequences, the
controllers of the international money world did not hesitate to enforce from the government
of the United States and from the European states the issuing of state public money amounting
to 4.5 trillion (4500 billion) dollars and 3000 billion euros, which aimed at the restructuring
and recapitalization of the banking system from the money of tax-payers. Now, the same
money cartel, with the detained private money monopoly, blackmails on the basis that it “had
lost confidence in the over-indebted governments”. This money cartel, however, does not add
to this that the global financial system collapsed owing to its own hazardous, irresponsible
and unscrupulous behaviour. The states could have given the public moneys directly to the
productive economy too, which produces alone value-bearing goods that satisfy social
necessities. Instead of this, the public moneys were given to the banks, which used it not for
the financing of the real economy, but for the further operation of the global financial casino.
Their goal is to produce even more money from money, since they cannot satisfy their endless
aim to get rich from the financing of the real economy any longer.
Dr Janos Drabik
15
A few reminders about what measures are necessary to be taken
immediately
We cannot speak of a radical change and of strategic turn without further decreasing
the base rate of interest and bringing it down to the average level of the EU. An exact account
must be given to the Hungarian society about what was the 25-billion stand-by credit taken up
from the IMF and Brussels spent on. The Hungarian people must be told, at last, how much
does the European Union membership cost for the country, and this account must also include
reference to the incomes the country lost as a consequence of this membership, as well as to
the other detriments and disadvantages that occurred. Poland’s pattern must be followed
concerning the fighting out of the cancellation of debt and rescheduling of debt. It must be
also studied how Argentina solved successfully this question. A programme must be
elaborated for the enlargement of the public property, for the re-nationalization, if necessary,
and at the same price and with the same conditions, as the sale and the privatization was
stipulated.
The Hungarian state controlled by national forces must become again such an
economic actor, which plays a determining role not only as a redistributor, but also as a
guarantor and end buyer. The financial crisis has proved that actually the state is the only
real economic force, which can really have an effect, because it has the final word. The
Hungarian state controlled by national forces must become the defender of public welfare.
The public welfare serving and social justice enforcing role of the state is not an ideology
which can come and go, but an indispensable function of the social, state existence. The
public interest, public welfare and public safety are indispensable conditions of the good
social public feeling, which are in harmony with health, welfare and the consciousness of
belonging to a community. This means the harmonic coexistence of people. And, on world
scale, this would mean the harmonic world order, the real alternative to the fallen usury
civilization, kept alive only on respirator.
The money rule global elite at a crossroad
The international money cartel controlling the world operates several networks and
institutions. Among these, the Trilateral Commission, the Council on Foreign Relations
and the Bilderberg Group have an outstanding importance. The Trilateral Commission
discussed the world situation in Dublin, and the Council on Foreign Relations in Montreal.
The third important organization, the Bilderberg Group, in turn, convened, behind closed
doors again, in Sitges, near Barcelona. On this year’s conference of the Bilderberg Group, it
became unambiguous that the leaders of the transnational groups of interest are worried about
the uncertainty around the euro, because it endangers the further European integration, as well
as the switching over to the new global currency. The financial crisis developing in Greece on
one hand staggered the European monetary system, on the other hand it served as a pretext for
the introduction of such drastic austerity measures, which can cause chaotic relations. The
transnational elite wants to persuade the public opinion that the chaos and anarchy can be
avoided only with the radical change of the current world rule relations. The deliberately
generated chaos, kept under control by the super-rich oligarchs with their financial
institutions, giant banks and the hedge funds owned by them, can offer an occasion for the
creation of such a global financial mechanism, which is necessary for the operation of the
world system, the world state, controlled from a single centre.
Dr Janos Drabik
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The financial attack started against Greece evolved into an attack against the euro and
the whole of the eurozone. The developments were also connected, to some extent, with the
structural problems of the Greek economy. The size of the developing crisis was already
threatening the economic and political integrity of the European Union. All this cannot be
explained solely with the avidity of the great financial players striving unscrupulously at
profiteering. It is obvious that also deeper causes can be found behind the appearance of the
Greek crisis situation. George Soros referred to this, when he stated that the European Union
owes its present crisis primarily to the unwillingness and hesitation to move on of the
European, more concretely the German politicians.
These politicians did not delay in taking decisions regarding the accumulated
problems. Therefore, the crisis striking Europe continued until the officials of the EU decided
on the establishment of the European Monetary Fund, which makes it possible to overcome
the ever increasing budget deficits of the EU member states. The European leaders were
compelled to choose between the collapse of the eurozone and the further centralization of
the governance of the European Union. The transnational money cartel is on the opinion
that the monetary union must be completed with a fiscal union, which means that the
European tax system and the budget policy of the EU member states must be controlled from
Brussels.
French financial and economic expert Jacques Attali, who was a close colleague of
former French President Mitterrand and the first president of the European Bank for
Reconstruction and Development (EBRD), has elaborated a concrete detailed plan recently
for the more powerful centralization of the EU. Attali suggested that the EU member states
should create their own institutions to monitor closely the activity of the structures that
control the financial system. He also proposed that a new crediting system should be
introduced, which is connected neither to the European Central Bank, nor to the Bank for
Reconstruction or to the governments. This new crediting system would undertake guarantees
for the operation of the viable local financial institutions, and would also buy property shares
in them. This European credit institution would extend loans only under specific terms.
Attali also urged the establishment of a European Ministry of Finance, which would
be empowered, from the beginning, to hand out loans in the name of the European Union.
This would be completed with the creation of a European Budget Fund, with a mandate to
oversee the budgets of the countries whose cumulative dept totals over 85% of the GDP.
Attali thought that an even severer crisis should be expected in the future, if the European
decision-makers are not willing to make this step.
Under the United States pressure, German Chancellor Angela Merkel – allegedly,
also at the pressure of French President Nicolas Sarkozy – finally consented to that, in May
2010, the EU finance and economy ministers signed an agreement on the mechanisms of
budgetary stabilization in the Eurozone. They established a 60 billion euro safety pillow fund
to urgently rescue countries battling with their temporary financial problems. Within the
framework of this financial assistance system, the member countries fighting with financial
hardships could get loans, in a total value of 440 billion euros, which would be guaranteed
jointly by the EU member countries. The International Monetary Fund also pledged to supply
further guaranteed loans amounting to 250 billion euros in the case of need. These altogether
750 billion euros are meant to maintain the solvency of the states belonging to the Eurozone.
The European Central Bank will also undertake this mission.
The central banks throughout the world, including the US Federal Reserve, the FED,
announced that they will put an appropriate amount of US dollars to the disposal of the
European Central Bank as well as of British and Swiss banks. All this can be regarded as the
first phase of progress towards centralized European monetary administration. Nevertheless, it
is unclear so far how exactly the “grand architects” of the new global financial order see the
Dr Janos Drabik
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world financial governance and what role they plan to give to such existing financial
institutions like the International Monetary Fund. The agenda also includes using the IMF as
an authorized supranational regulation center under the supervision of a G-24 board.
The power organisms above nations are being enlarged
The world can witness again the creation of such a supernational mechanism, which
controls the national economies of the individual states, and, if a crisis situation occurs,
intervenes for the sake of the necessary change, but in a prepared and organized way. The
essence of this is to tighten integration within the EU, which is the precondition of the
strengthening of the Euro-Atlantic power block – the West. The plan imposed on Europe by
leading world financial circles wants to counterbalance the partly deliberately created
indebtedness crisis with the help of new huge borrowings. This solution will exacerbate rather
than remedy the problems occurred in the budget of individual states. The main cause of the
delay of these ardent problems is that no single standpoint in these questions has emerged in
the global elite yet, due to the struggle for power among the main global decision-makers.
According to the statistical office of the European Commission, the Eurostat, in 2010
the indebtedness (sovereign debt) of the countries belonging to the Eurozone will grow from
77.7% to 83.6% of their GDP. The financial experts consider that the indebtedness figures
for not only Greece and Portugal, but also for Spain, Italy and a number of other EU countries
are unrealistically low as compared to the actual data. Experts estimate the bulk of Greek bad
debt at 875% of its GDP, while in Poland and Slovenia the debt to GDP ratio is 15 and 11
respectively. The corresponding average in the United States is 5, and the ratio of
indebtedness in the states of the Eurozone is 4.34.
The structural transformations are still being awaited. In order to alleviate the
situation, the EU finance ministers adopted the German plan. On 21st May 2010, European
Central Bank president Jean-Claude Trichet and European Council President Herman A.
van Rompuy supported the German plan of much closer budgetary coordination including
penalties for member states that break the EU budgetary rules. The sanctions will include
suspending the voting rights and withholding the funding for infrastructural development of
those member states, which repeatedly offend the budgetary limits. It was also proposed to
subject national budgets to EU screening prior to their being debated in national legislative
bodies.
The European Commission, the European Central Bank and the 11 countries
belonging to the Euro Group (Eurozone) discussed other, yet more ambitious projects. They
included the adoption of the joint budget of the 11 Eurozone member states.
In order to avoid the financial collapse, the EU countries were compelled serially to
introduce extremely unpopular austerity measures. They froze the salaries and pensions of
state employees, cut welfare expenses and increased retirement ages. Greece was forced the
first to adopt such measures. Then Germany decided to cut spending by 10 billion euros
annually in 2011-2016. France abolished the annual pension for low-income families.
Under the IMF pressure, also Spain was forced to a comprehensive reform, including
pension indexing freeze, pay reductions and employment cuts in the state sector. Similar
austerity measures are being planned in Great Britain, Italy and several other countries. The
consequences of these measures are hard to gauge considering that the unemployment has
reached 10% of the economically active population and continues to grow. As a consequence,
in the member states of the European Union at least 80 million people are currently below
the poverty line.
Dr Janos Drabik
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We have mentioned all these in connection with the Sitges meeting of the Bilderberg
Group because we wanted to demonstrate that the power elite, which wants to retain control
over the world, had to make hard decisions in rather difficult situations.
This time, several invited representatives of the world elite stayed away from the
meeting, because their participation to the conference could have an unfavourable effect on
their judgment, if their presence comes to light. The dominating panic was even increased by
the bloody demonstration broken out in Greece following the austerity measures imposed by
the International Monetary Fund. This also signaled that the world elite gradually loses
control over the events, while the hostile attitude of the world public opinion is growing. The
increased interest of the world public opinion is shown by the fact that Charlie Skelton
reported for the second time about the Bilderberg meeting for the Guardian of London, and a
detailed report was published also in Russia Today.
It is a peculiarity that Daniel Estulin – who also wrote a remarkable book about the
operation of the Bilderberg Group – delivered a speech to the politicians in Brussels, at the
request of the European Parliament. In this speech, he revealed the intention of the world
financial elite to collapse the global economy and make the world economy a corporation
controlled only by them, of which only they benefit. Estulin’s book directed the worldwide
attention onto the Bilderberg Group, revealing what role it plays and why it must be stopped.
In the international financial world, there are those who lead and those who react to events.
While the latter are better known, more numerous and more powerful in appearance, the real
power lies in the former. In the global financial system, the financial oligarchy is
represented by the Bilderberg Group.
The organization of the Bilderberg organization is dynamic, i.e. it changes over time,
it absorbs, but also creates new phenomenae, while disposing of those in decline. Some of its
members continuously change, but the system itself has not changed. It is a self-replicating,
virtual web network, intertwined with the financial, political, economic and industrial control.
The Bilderberg Group is a secret society. It is like an all-seeing evil eye. Nevertheless,
Estulin states that there is no conspiracy, in the classical sense, as childhood fantasies see it.
No group of people are sitting around a table in the dark, holding hands, gazing at a crystal
ball, planning the future of the world.
The people gathered in Sitges are linked together with a certain ideology. The
Bilderberg Group is not the global government or the New World Order yet, it strives at the
strengthening of the global corporation for the moment. According to Estulin, the goal of the
Bilderberg meetings is to create a global aristocracy following the same ideology, which is
able to manage our planet optimally with the cooperation of the elites of Europe and North
America. To create a huge network of cartels, more powerful than any nation on Earth. This
super cartel is destined to control the vital needs of the humanity, obviously from his vantage
point, for its own good and benefit. The rest of the world, the lower classes, would represent
“The Great Unwashed”.
The Bilderberg Group is the institution of the international financial
community that represents the most powerful and predatory financial interests. And this
combination is the worst enemy of humanity – says Estulin. The Bilderberg Group that today
has got in the centre of the corporate mass media. Not because the corporate media has
suddenly remembered its responsibility towards other people, but because the public opinion
has forced the representatives of this opinion power to be aware that the presidents and prime
ministers and kings and queens are only tiny puppets of powerful, world-forming forces
operating behind the scenes. Something has happened in the midst of general economic
collapse. People are frequently subject to something that they do not always understand. That
leads them to act in their own interest. That's what happened in Greece, and that is what is
going on in the United States.
Dr Janos Drabik
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The financial crisis, like a tidal wave, took away the fears of the people. They realized
that their existence is threatened, so they have lost their fear, and today already perceive the
Bilderberg Group in a different way. Maybe that's why, in a recent speech at the Council on
Foreign Relations, the CFR, in Montreal, Zbigniew Brzezinski, one of the founders of the
Trilateral Commission, said that the "global political awakening", in combination with
internal struggles within the global elite, is already threatening to divert the world strategy
towards the establishment of global governance. Estulin condemned with harsh words those
who worked for secret societies and who have sold their nation for material advantages. He
called them traitors – not only traitors to their people and their nations, but of humanity as a
whole.
After this, Estulin referred to the fall of the Roman Empire, and to the decline occurred
in the 14th
century, to the creation and collapse of the financial bubble of speculation, and then
to the start of the historical Modern Times. At this time, new institutions were created. The
conception of the modern nation-state republic under the rule of natural law was born. The
citizens have given – as a central role – the mandate of promoting scientific and technological
progress to the republic. But the members of the Bilderberg Group want a global empire.
That is called globalization. And many people believe that to create an empire, you need
money. But money, in itself, creates neither wealth nor economy. Money has no intrinsic
value. The human mind and knowledge determine the development of the planet.
The deliberate destruction of world economy
It is not for the first time that the world elite represented by the Bilderberg Group
destroys the world economy deliberately: the predecessors of this closed group of interest did
the same also in the 14th
century, in the Dark Middle Ages. At present, this global elite wants
zero growth and zero progress. According to a 1980 draft of the Council on Foreign Relations,
the controlled disintegration of the global economy is necessary. In 1955, the Bilderberg
Group stood beside destruction, namely by planning the destruction of world economy on
purpose. The Great Depression, actually, aimed at the massive transfer, taking away of
others’ wealth. This world crisis was not an event that wiped out America’s capitalists. On the
contrary! The Great Depression made them even richer by making it possible to take the
wealth away from those who produced and operated it, by transferring wealth from people at
the hands of those who were already rich.
The Bank of America made billions of dollars through foreclosures from 1929 to
1937. Do not think for one second that the interests of the richest of the rich will be hurt by
the forthcoming newer world economy collapse, as a consequence of the second phase
forecast by Soros, being still ahead us. The only losers will be those who do not belong to
them. A good example is Greece. What they're trying to do is collapse her economic system,
instead of allowing Greece to reorganize her monetary system. They are imposing that the
Greek debt is financed by Europe, but that debt is worthless. In fact it's garbage money
monopoly. So, by making Europe absorb the unpayable debt of Greece, they enforce the
transformation of Europe’s financial system and the continuous blackmailing of the large
states.
An official communiqué, containing the essence, about the Bilderberg meeting in
Sitges was not issued this time either. The observers, usually, can deduce the taken decisions
from the events happening after the meeting. Thus, it is interesting what the finance ministers
and central bank governors of the G20, the greatest economic powers of the world, decided
about on 7th
June 2010, that is one day after the Sitges meeting. On their South Korean
meeting, the participants to the G20 conference rejected the policy of economic stimulus
Dr Janos Drabik
20
followed up to then, and abandoned also the proposals for a global banking levy. The
financial leaders of the G20 decided to shift to severe fiscal policy, instead of economy-
stimulating and growth-incentive measures. They motivated this with the fact that the
possibility of the world-scale debt crisis makes the financial system unsure of itself. In April
2010, the standpoint of the same financial leaders was still that the fiscal incentives should be
continued until the private sector and the productive economy strengthens duly.
The council of finance ministers welcomed the crisis management measures of
countries struggling with high budget deficit. The French finance minister also added that the
debt consolidation is more important than the stimulation of economic growth. Nevertheless,
U.S. Treasury Secretary pointed out that restoring fiscal sustainability of the budgets of
European states makes the possibility of growth difficult worldwide. Timothy Geithner
found the fiscal rigour inefficient until the confidence of the market was restored. In
connection with the global bank levy, the G20 finance ministers agreed that, for the moment,
each country should provide for the supervision and taxation of its own financial institutions.
They have to reach all this so that they should assure the transparency of their banking
system. Nevertheless, the introduction, until the end of 2012, of an international money
market regulation will still remain on the agenda.
According to the nearly unanimous opinion of the experts surveying the Bilderberg
meeting, a possible war against Iran was on the agenda in Sitges. For the moment, we
cannot know whether a decision on this was taken or not. Many experts think that the
situation is similar to that one between 1929 and 1939. Therefore, the global forces working
on the creation of the New World Order could possibly use – beyond the economic devices –
also the war for the sake of creating the one-world government governed from a single centre
as soon as possible. But, in this respect, we can only guess again, and only the events
occurring in the future will verify that the analysts were right or wrong.
How could we get out of the world financial crisis?
Firstly, we have to answer the question: what caused the distortion and extreme
degeneration on world scale of the money system? Each and every man is at the same time
and inseparably a natural, a social and a spiritual-intellectual being. The money, as a sign,
nevertheless, can measure and convey only one relationship of the man, namely that one
which he exerts within a community, as the member of the human society. The role of the
man in the division of labour, and the goods produced by him can be, more or less, compared
to and measured with the quantitative index numbers. Therefore, when we measure such a
complex phenomenon as the interrelation of human communities with each other and with the
natural environment, i.e. when we measure the “metabolism” of mankind with nature, we can
use money as an aid. The complete activity reduced to the quantitative side can be described
with a sequence of figures. Nevertheless, all these only show what is more or less, or in which
order of magnitude it is so.
All this lacks the complexity of man as a natural being, and, similarly, we do not get to
know anything about all other dimensions of man. This means an extremely great reduction,
since all human beings are, at the same time, unique and unrepeatable microcosms. So when
we try to express the multiply complex and sophisticated values in money, we undertake an
impossible task, which cannot be achieved. What we consider to be a solution, is nothing else
than arranging certain abstract quantitative indexes, and their keeping on file in a certain
accounting system.
Keeping on file – especially with the development of information technology – has
become such an independent institution, that frequently the filing itself is the value, and is
Dr Janos Drabik
21
more important than that, what the records refer to. The reduction of the complex phenomena
to one-dimension, abstract and homogenous sequences of numbers, of course, makes
comparison easier, and, if being numerous is a value, this numeric comparison can even be a
measure of value. In essence, in accounting we keep records on claims, which are also used
for value measuring. Gradually, the claims themselves have become means of payment, and,
when the business partners settled the accounts with each other, they usually changed claims
with each other, as settlements.
The claims recorded in the accounting have different profits, and the settling is done
by collating the returns or profits. If the banknote representing the numeric relations, i.e. the
money is inflated, this means a negative return for the owner of the inflation money. If the
account money is also included in this banknote in the accounting records, it will be inflated
in the same ratio as the banknote. In the accounting, the bank deposit of a client is a claim
from the bank. When the bank gives a credit to the client taking up a loan, it is the claim of
the bank from the client.
In several articles published in the Hungarian tabloid newspaper Magyar Nemzet, as
well as in lectures given on different forums, István Varga set forth that the banking balance
is just the mirror image of the balance of the enterprises. The tool of the bank, which it grows
continuously in order to have more profit, is not the liability of the bank. The financial
institutions (primarily the banks) want to multiply their own money instruments and to
decrease their liabilities. The more successful a financial institution, an investment fund or a
bank is, the more devices it has, and the larger these devices are, the larger the debts of its
clients are.
The secret of the banks’ success: making the clients indebted
So that a financial institution dealing with crediting should be successful, it should
indebt efficiently its clients. These indebted partners themselves can also be banks and
financial institutions or investment funds. When, within the banking system, these financial
actors reciprocally indebt each other, in fact they produce money within the banking
system. But the banking system has broken away, for a long time, from the value-creating
real economy that produces physical goods. The assets and liabilities recorded within the
banking system are only sequences of figures, and the raw material of the banking system
consists of computing digits. The multiplication, growth of these signs arranged into
sequences of figures is possible with different virtual methods.
The actor of the real economy – which produces value-bearing physical products and
services that satisfy human necessities – strives with the mining, the processing, the
development, the transport, the multitude of services, the obtaining of information, and the
taxation. In contrast, the financial sector and the banking network operating within it are a
one-dimension factory, which only has to multiply the accounting signs.
When the transnational money cartel that had developed the current financial system
of the world succeeded in pushing out the state-issued money, and, then, drew under control
even the central bank issue moneys substituting the former, could create the interest-yielding
credit money monopoly, the money necessary to which was raised by the banking system, in
the form of account money. The state-issued money, the issue bank money, as well as the
account money were still connected, to a certain extent, to the value-producing real economy.
Nevertheless, due to the interest mechanism, the credit money, connected to the real economy,
after a certain determined time, could not grow in the required measure. At that time, the mass
production of the synthetic money started, which money was only covered with virtual
banking instruments, financial “products”.
Dr Janos Drabik
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It would be normal if the signs serving the transmission of the economic life were
produced by those who produce the mentioned values, the physical products and useful
services. According to the normal order of life, the sign should be secondary, since the
primary is what it signals. Nevertheless, in the case of money, mankind had to face such a
sign in such a sphere where the production of signs was totally cut from those who produce
the mentioned values. The production of signs became the privilege belonging to only a few
people, and passed into the property of a self-designated, narrow and closed group of
interest, which made the production of signs its private monopoly. This group of interest
gives in use these signs – essentially produced free – extremely costly to the actors of the
value-producing real economy. Until this interest-operated private money monopoly was
created, the public power – the state – had produced, as a public service, the signs assuring the
communication of the economic life: the money covered with productive work, value-
production, physical products and services that satisfy needs. As long as this system worked,
the money could primarily be created only through work and production. At that time, the
financial sector was only serving the real economy, and the money, as a sign, was the
mediating instrument of the value-producing economy.
The organized transnational money cartel took this authority away from the states, and
transferred it to an institution invented and spread over by itself, the international network of
central banks. The creation of the central banks was necessary so that there should be such a
private institution looking like a public institution, which is exclusively owned by or is under
the control of the money cartel. The international money cartel exerts the power over the
central banks by enforcing the “independence of the central banks”. The central banks are
independent only from their states and governments, but are totally dependent from the
transnational money cartel and the international banking system owned and controlled by it.
(For instance, the Hungarian National Bank regularly reports to and receives instructions from
the BIS of Basel, the Bank of International Settlements belonging to the sphere of interest of
the House of Rothschild.) So, the money cartel has taken away the monetary authority from
the states, i.e. has deprived the states of the issuing of money, the regulation of currency rates
and credit rates, as well as of public crediting. Thus, the operation of the money system has
become the intangible privilege of banks and other financial structures in private ownership.
As long as the money cartel and its institutions create the money, and only credit
money operated with interest mechanism is in circulation, all money within this money
system is such a claim, for which interest – some kind of money rent – has to be paid. In the
productive economy, industry and services, this interest appears as cost, because it withdraws
money from the productive activity and regroups it to the money cartel detaining credit
monopoly and its institutions. The so ever strengthened money sector has grown into such a
money economy, which has totally surmounted the real economy that had become dependent.
The public economy was transformed into money economy, the economy into chrematistics.
Thus, while, in the real economy, the interest is a cost, which withdraws resources,
this interest, in the banking system, is a tool, the production of which is an accountant’s task.
If, in a banking accounting, the interest of a claim changes, the yield of the given value also
decreases or increases. This means that the exchange value of the two accounting claims also
changes. A promissory note with a higher interest is worth more than one with a lower one.
The state and corporate bonds with a better yield push out those with a smaller yield. The
current fair market value of certain bonds, securities, money instruments mostly depends on
human will and influence. The exchange of securities can be influenced with calculated steps,
and great money yields can be obtained by this, especially if these exchanges are made in
large items. In the monetary system, the actor which is able to exert changes and can calculate
the triggered consequences, will be in superiority against that one which does not detain the
information and tools necessary for that.
Dr Janos Drabik
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With the creation of the transnational money cartel, and the strengthening of the
system of chrematistics, techniques like this developed and improved gradually. As a result of
the development of information technology, of computerization, also the influencing of the
movement of money was automated. The so-called forward transactions are in fact bets.
The result of the bet is such a claim against somebody, in which, in the real economy,
somebody’s work is accounted. In the real economy, where real values are created, the
economic actors are subject to the laws of nature. The employee can perform work only
within determined time and health limits. On the contrary, business transactions consisting of
bets can be made almost without limits, especially in the case that, at the time of the business
transaction, not even a part of the value of the bet has to be paid in advance. This money,
produced with bets, is what is called synthetic money.
This so-called money that can be produced unlimitedly was deliberately confused with
the book value of the value-creating work. Since this synthetic money could be multiplied
unlimitedly, it took over the rule over the money covered with work. What we call “normal
money”, was money covered with precious metal, gold and silver, for a long time in the
course of history. This was substituted with the issue bank money issued by the central banks
invented by the money cartel, the acceptance of which was guaranteed by the state, and the
state allowed that the public debts, the taxes could be paid in this money. At stock exchanges,
bets could be made with this issue bank money, and greater and greater sums were created in
this way. It even happened that the return reached 40-45 times the invested amount of money.
At this time, the claims kept on record in the accounting have already become dominant.
People started to call these moneys credit money, since they were created by financial
structures and not by central banks.
The speculation practice gradually changed over to the trade with promissory notes,
because, in large amounts, they could be manipulated easier, in order to get even bigger
yields. One of the methods of manipulation was the influencing of the investors’ mood. The
government bonds, for instance, were popular because it was easy to influence the attitude
against the given states with the help of political propaganda and the mass media. Thus, when
we speak about financial crisis and indebtedness, always the budgets come into the limelight,
because the good or bad propaganda about the budgets drives directly the price of the
government bonds on the money markets.
By the end of the 1970-ies, the outlay of the oil dollar billions resulting from the
deliberate oil price explosion, accomplished in several phases after 1973, was finished, in
essence, to the rising countries of the so-called “third world”, with a relative low interest of
4.5–5%. Nevertheless, in the summer of 1979, during the Thatcher administration, the
determining rate of interest was raised to four times its current value. This was followed by
the interest rate raising of the American central bank, the FED, which raised the level of
the basic interest rate over 20%. The countries indebted according to a plan were able to pay
the debt service loads raised to 4-5 times only by issuing newer bonds and by getting even
more indebted. (These deliberately indebted countries include also Hungary, which country
has taken up a resource loan amounting to altogether one billion dollars at the end of the
1970-ies and the beginning of the 1980-ies, and for which has paid 11 billion dollars interest
until 1989, according to the official data of the Hungarian National Bank, but still has to pay a
debt amounting to 22 billion dollars – MNB Műhelytanulmányok 2, 1993.)
It has become a general practice that the states paid their former debts with even
bigger loans. As a consequence of this, the amount of government bonds continuously
increased on the money market, and their re-evaluation with the news spread about the
political and economic status has become a special business branch. In the course of world
history, the indebting of states was always considered to be the most secure debt. The
sovereign debtor repays the debt nearly always, since, even in the case of the so-called “state
Dr Janos Drabik
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bankruptcy”, usually only the rescheduling of the payment liabilities takes place. The issue
bank money still connected to the real economy was pushed into the background, and the
credit money created with the transactions of the financial structures became dominant. But
even this money-raising action within the banking system has its limits.
When also the multiplication of the government bonds has already reached the upper
limit, newer financial techniques had to be found. The so-called index trade was created at
the beginning of the 1990-ies, which already means the buying and selling of index
numbers included in the accounting reports. Of course, we cannot speak about actual selling
or handing-over and buying or reception, since these accounting file indexes cannot be
actually taken into ownership. In fact, we can speak about bets, which are made by those
who control the financial movements on the evolution of the indexes. The transnational
money cartel could attain that the authorities controlling the money system should loosen the
regulations. They enforced such regulations for themselves according to which, during such
transactions, only 1-2% of the bet value should be deposited, and, in this way, they could
speculate to values 50 or even 100 times greater. Here we can already speak about such a
large-size financial movement, which only the strongest actors of the money system
transformed into a gambling casino could afford. They, conspiring with each other, regularly
speculated to the prejudice of smaller actors, or got rid of their undesirable rivals in this way.
The orgy of the “money bubble barons”
By 2008, with inflating five giant money bubbles, synthetic money amounting to 12
times the world’s gross domestic product. This gambling of gigantic size could not bear the
publicity of the wide public opinion any longer, so these financial gamblers used maximally
the opportunities hidden in the off-shore environment. They needed, first of all, to be able to
hide away their records covering such transactions, the books of the biggest money-makers
from the authorities. But, with the billions of synthetic dollars produced this way, the
transnational money cartel continuously and globally bought up the precious metal deposits,
first of all the gold and the silver, and, furthermore, it became the owner of the value-bearing
properties of the real economy.
The mass production of money organized by the money cartel affected primarily the
United States, since this multiplied its currency, the dollar, which also fulfils the role of the
world’s deposit currency. The American money system symbolized by the Wall Street
primarily dealt with portfolio investments and neglected to supply credits to the value-
producing real economy, and the capital investment into the production and the research and
development gradually fell out. The money economy settled down onto the real economic life,
the place of economy was taken by chrematistics. While the economy focuses on the
production, the creation of goods and services that satisfy human needs, the chrematistics
focuses on trade, on turnover and, mostly, on how more and more money can be produced
from money – with the total avoiding of real economy. The goal of the original banking
activity is to supply the real economy with appropriate credits, and to assure the money, as
intermediary tool.
But the role of the investing financial institutions, primarily of hedge funds is to
multiply the money, in as high amount as possible. When the mass production of money
started, the classical banking activity was pushed into the background. The plants and
factories producing goods of common necessity in the United States were closed one after
another, and the productive activity was transposed to China, India and other Asian countries,
as well as to South America. They justified this saying that it is enough if America
concentrates on the trade and the goods marketing. As a consequence, quite many Americans
Dr Janos Drabik
25
lost their jobs, and this increased the social expenses of the state. Not only the amount of the
paid unemployment benefits rocketed, but also the taxable income decreased more and more.
All this increased the budget deficit and further accelerated the indebting of the state.
Many Asian productive companies – mostly the Chinese enterprises – used their
money covered with own work for their value-producing activity. This way they saved their
dollars received for their products exported to America and to other countries of the Euro-
Atlantic area. They spent a considerable part of this huge sum on buying American
government bonds, i.e. they credited the more and more indebted Washington administration.
The foreign manufacturers played a more and more important role. In order to decrease the
indebtedness, the private bank fulfilling the role of central bank of the United States, the FED,
lowered the base rate of the dollar to nearly zero. The credit became extremely cheap, and this
made it possible that even unemployed people could take up loans on mortgage for real estate
procurement. In this way, money got into circulation not only through benefit payment, but
also through money issuing, and increased thus the demand and the consumption.
The economy of the United States, representing the centre of the financial system of
the Western world, still operated with this method. Nevertheless, experts already knew that
the debtors without income would not reimburse the credits. There were also two institutions
operating, the Freddie Mac and the Fannie Mae, with the task of handling the bankrupt
mortgage loans within the framework of the so-called Relief Refinance Mortgage program.
The indebted state, nevertheless, could not undertake the expectable burdens in case the real
estate market collapsed. Therefore, the big investment financial institutions of the Wall Street
bought up the debts from the small local credit institutions, and supplied them with money in
this way, so that they could continue crediting. The investors packed the bought-up credits on
mortgage into bigger and bigger units, and the credit qualification institutions financed by
them, on request, gave good qualifications on these packed credits on mortgage. They labeled
them as reliable securities assuring secure yields. The next step was to sell these, as
guarantees, to pension funds detaining covered money, if possible, to European banks. The
fact that also Europe’s money system became instable, can be attributed, among others, to
these bought packets of credits on mortgage. The Canadian and Asian banks did not buy any
of these financial instruments of doubtful value. Some of the European financial institutions –
for yet unknown reasons – acted in collusion with the Americans.
The financial crisis was started primarily by those investment financial institutions,
which managed to get rid of the restrictions brought by Franklin Delano Roosevelt, meant to
make the banking system more secure. They argued also with that “they were too big to go
bankrupt”, because their fall would cause the collapse of the whole economic system.
Anyway, it is a fact that they managed to persuade the United States and the Western
European governments to help them with bank relief packages, to the detriment of the
taxpayers. In the enforcement of the bank-saving and economy-vitalizing state aids, an
important role was played by the panic-raising of the credit qualifiers, who, on order, were
ready to manipulate the public opinion. The investing financial institutions managed not only
to make up the falling-out yield of the bonds priced with fraud, but could also charge the not-
accounted expenses of the index trade onto the public power.
With the guarantees undertaken to the debit of the society, the taxpayers, the
governments took over the loss of the hazardous bets. Thus, also the European states got
indebted. Nevertheless, the size of this indebtedness is not visible, since these financial
liabilities are not included in the accounting of the public finance. A special index number
was invented for the stock of liabilities originating from bank reliefs. But it is not made
public. It is well-known that the central bureaucracy of the European Union has a great
propensity for referring to the obligatory provisions included in the Maastricht Treaty,
Dr Janos Drabik
26
according to which the budget deficit of a EU member state cannot be bigger than 3% of the
yearly gross national product, and its external indebtedness cannot exceed 60% of the GDP.
At present, several states of the European Union have loaded themselves with many
times the upper limit, due to the state aid supplied to the hazardous banks. The mass media of
the European Union, but also the Hungarian one, does not say much about the bank-saving
packages. On the contrary, those experts get great publicity, who now already speak about the
wavered confidence of the money market, because the governments are much too indebted.
The natural answer to this would be that the competent governments should at least make
reference to the fact that they had to break the Maastricht criteria exactly because they had to
help those who are accusing them now.
Globalization of the unscrupulous extortion and looting
In the summer of 1979, first the City of London and then, in December, the FED
raised to nearly four times the determining basic interest rate. Owing to this, the debt service
burdens of the indebted countries and enterprises rocketed. Also Hungary had to carry such
debt service burdens as if it had taken up four times more credits on the international money
markets earlier. The borrowers were forced to reimburse their previous debts by taking up
newer credits, therefore the amount of government bonds continuously increased on the
money markets. By the re-evaluation of these and by influencing the political and economic
atmosphere, it was possible to obtain a large extra profit. The state or governmental debts
represented the most secure claims, so raising money and crediting for them did not seem to
be a risk-increasing factor. The role of the central banks was forced into the background, and
the credit money prevailed.
As a matter of fact, the actual value of all money originates from the real economy. If
the growth of the value-creating real economy, above a certain level, is not possible, any kind
of money could be built upon this economy, but it could not be multiplied unlimitedly, only
for the sake of satisfying the speculation needs of the investor financiers. Therefore, also the
multiplication of government bonds was limited. At the beginning of the 1990-ies, a newer
money-creating method had to be applied, and this was the index trading, which means the
selling and buying of index numbers included in the financial accounts. These accounting
indexes cannot be actually owned, but bets can be made for the evolution of the index
numbers.
Thus, those who operate the money industry created such rules for themselves,
according to which they had to deposit only 1-2% of the betting value, i.e. they were able to
make bets on values 50 or even 100 times bigger than the amount of money they detained.
This was what they called high degree capital leverage transaction. In this way, the great
financial actors who determine the money movements could act jointly against the smaller
and the undesirable, and thus assure a huge extra profit for themselves.
This practice made it possible for them to produce, prior to 2008, synthetic money
amounting to 10-12 times the total world economic product, and to use it for speculation
purposes. This money production technique, nevertheless, proved to be finite by the middle of
2008. At this time, the great financial investors moved such a big amount of synthetic money,
which could not bear the publicity any longer. As we have already mentioned previously, the
circulation and negotiation of these sums was done in off-shore environment, where the
financial authorities could neither regulate, nor supervise the performed financial transactions,
thus the business books of the global money makers could avoid control. With these billions
made from air – through bets –, the large investors bought up the value-bearing enterprises of
the real economy, together with their physical assets.
Dr Janos Drabik
27
The international money cartel multiplied primarily the dollar, today still fulfilling the
role of the reserve currency. The financial institutions specialized in the investment of
financial instruments shifted on to the trade of promissory notes, since they could transform
their value easier through the mass media. The opinion industry owned by them could
influence duly the public opinion, the investors’ mood. The government bonds played an
outstanding role in this, because it was relatively easy to influence the public mood at will,
concerning the policy of the governments. This is why the programmes of the mass-media
were primarily about the budgets, because the good or bad propaganda about them could
efficiently move the price of the government bonds up and down.
The world financial crisis, which started in 2007 and burst out in 2008, was primarily
caused by the unscrupulous striving to grab of the large banks. Especially the largest banks
among the large ones thought that they could indulge in everything, because they are so big
that the state cannot allow them to go bankrupt, as that would pull down the whole of the
economic life with it. Thus, the governments of the United States and of the European Union
saved these financial institutions by accounting the long-term financial liabilities undertaken
to the account of the taxpayers. The governments of the European Union supplied an aid
amounting to altogether 4,131.1 billion euros to the banks, under the title of guarantee,
capital increase, taking over of bad claims and cash assistance between October 2008 and
March 2010. Making reference to the Greek state bankruptcy, artificially inflated for
blackmailing purposes, Athens was helped with 101 billion euros in three years. If we collate
the amount of the aid supplied to the European banks with this sum, we can see how great a
hysteria-raising was being done under the pretext of the so-called “Greek crisis”.
The international money cartel, which took away the monetary sovereignty from the
states and made it its own private privilege, forbade the states exerting the public power to
issue money, to regulate the currency rate, to determine the rate of interest and to offer public
credits on the reason that all these generate inflation, because the “banknote press”, i.e. the
state money issuing floods the productive economy with uncovered money. If, on the other
hand, the investor bankers, driven by unscrupulous money greediness, cause a loss amounting
to many thousand billions with irresponsible speculation, then it is permitted to run the
“banknote press”, and to compensate the thousands of billions lost with irresponsible hazard
from public money, at the expense of taxpayers. The valid contracts of the EU determine in
detail the operation of the money system, irrespective of the fact that the given EU member
state belongs to the Eurozone or not. The key terms of the regulation are the free competition
and the open market.
Therefore, the European Union does not have an own financial system, so all doors are
open in front of the totally free and destructive operation of the speculation. This is why the
monetary policy of the European Union is weak. It is true, a so-called European System of
Central Banks exists, but it is subordinated to the larger and open financial system of the
world. In terms of information flow, the ECOFIN, i.e. the Economic and Finance Council
of the Council of the European Union, composed of the Economics and Finance Ministers of
the 27 European Union member states, works on an acceptable level. The same cannot be said
about its decision-making activity. It was not the institutions of the EU who made a decision
on saving the banks, which got in trouble because of the irresponsible risk undertaking, but
the individual states. It only needed the approval of the European Commissioner for
Competition.
This Commissioner for Competition was Neelie Kroes, who is well-known due to her
close relationship maintained with the international money cartel. This politician, also called
“Nickel Neelie”, attended the Bilderberg Group conferences in 2005 and 2006. The Forbes
magazine accounted her among The World’s 100 Most Powerful Women several times. In
2009, when she was routinely stamping the permits on the basis of which the individual
Dr Janos Drabik
28
governments could support their banks got in trouble with public credits, she reached the 53rd
place on the Forbes magazine’ list of Most Powerful Women. (In 2008, she was the 47th
, in
2007 the 59th
, in 2006 the 38th
and in 2005 the 44th
.)
If the provisions of the European Union Treaty and its Attachments strictly forbid the
individual member states to issue money, since this is the exclusive monopoly of the central
banks and of the whole of the banking system, then how was it possible for a lady to permit,
routinely stamping, that, the governments of the member states, in contradiction with the EU
treaties, could charge their taxpayer citizens with 4,131.1 billion euros, i.e. flood the
economy with this amount of money, bringing about the danger of inflation, the dilution of
money. Who gave permission to Lady Neelie Kroes to do that? Who is going to call this
person to task for that? All this proves again how harmful an institution the European Union
is, as the servile servant of the money cartel and the executor of its orders.
The recently created, supra-state, imperial institution system of the European Union is
futile and is hindering the really democratic operation of the Europe of Nations, based upon
equality of rights. This indebtedness of the states of Europe serves exclusively the interests of
the transnational money cartel. The fact that the European Union and especially its
bureaucratic institutional system served the demands of the money cartel with such servility
signals that the European Union is such a futile imperial structure, which does not enhance,
but hinders the operation of the Europe of Nations.
What is necessary for the increased economic, social, political and cultural
cooperation, can be achieved through the cooperation between nations based upon equality of
rights more efficiently and more cheaply than through an imperial system got under the
control of an extremely expensive, prodigal and bureaucratic hydrocephalus, which cannot
even be controlled democratically. The transnational money cartel needed this artificial
imperial makeshift to put its strategic goal, the establishment of a global system controlled
from a single centre, into practice as soon as possible. For the sake of the finalization of its
private money monopoly on global scale, this transnational money cartel needs to annihilate,
within the individual national states, the middle class, and, on international level, the national
states detaining claims of sovereignty. The cheapest way of annihilating the national states –
which requires neither army, nor war – is when these national states are forced into an
imperial structure, and the individual member states are reduced to the status of regions with
cultural autonomy.
Even the “Greek crisis” is not Greek
In his already mentioned work, István Varga states that even the “Greek crisis” is not
Greek, but an external action attacking the euro, with the purpose to support the dollar close
to collapse by weakening the European money. In the case of economies operating in different
conditions, the euro is unsuitable for serving the real economy. Those, who do research in the
field of the currency zone operating optimally, have revealed that the common currency
concentrates the money capital. This means that it regroups the resources from the weaker to
the stronger, that is from the periphery to the centre. In this way, it deepens the differences
between the countries belonging to the currency zone.
These deviations could be equaled with the different currency rates, but this issue is
excluded by the common currency. Following the important conferences of the international
money cartel held in 2010 (TC – Dublin; CFR – Montreal; Bilderberg – Sitges), decisions
were made concerning that the financial and economic equilibrium should be restored, among
others, with budget austerities. Nevertheless, keeping the budget deficits under control is not
suitable for this purpose. They are talking so much about budget deficit primarily because this
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reacts upon the risk of government debt bonds. Their pricing and quantity already depends on
the international banking system. The budget of a state depends primarily on the operation of
the economy of the given country. If this economy cannot produce enough income, the state
will not have enough revenue to cover its public expenditures, and, in this case, deficits occur
necessarily in the budget. If, on the other hand, the deficit grows, the crediting risk increases,
and the financing becomes more expensive, which makes the deficit increase even more.
The income production of the economy is determined by the bank crediting. If the
productive economy does not get enough medium, or, in other words, there is not enough
money driven onto the economy, but, at the same time, it has to reimburse the debt service
burdens, in fact a money withdrawal is going on. In such a case, if the budget does not get
credit for financing the public tasks, it is possible to enforce the transformation of the large
distribution systems and the cutting down of the financing of public tasks. The society
perceives that the decay is continuous, but – since the mass media institutions hide away the
real causes of the operation of the money system, and the controllers of the monetary system
misinform the people – it is possible to create the appearance that it is the fault of the
budget, because it overspends. The society is also guilty, because does not consume in
proportion with its value-creating labour, that is its consumption is bigger than the result of
the work done.
In this neo-liberal money rule world order, the moral value standard was not only
pushed into the background, but even deleted. It is basically immoral to limit the supplying of
the economic actors, struggling against economic hardships, with financial media, on the
reason that the risk of repayment increased, so financial instruments can be obtained only for
an essentially higher interest. The logics of the natural economic order would dictate that, in
such cases, all actors of the economic life should undertake surplus burdens. The entrepreneur
got in a difficult situation should not be hit with punitive interest rates, but should be supplied
with working capital and other financial instruments with a smaller debt service burden. This
is what concludes from the natural laws and universal morality.
The Islam is more moral
In contradiction with the Christian and Jewish religion, the Islam forbids the collecting
of interest even in our days. If an oil sheikh wants to invest his money, he looks for an actor
of the real economy, who will add his productive work to this, and will produce surplus value
bearing real economy product or service. If this activity is successful, they share the surplus
value in a previously determined proportion. If this economic activity is unsuccessful, they
bear and share the loss in the same ratio. And if there is neither profit, nor loss, none of them
has any claims against each other. In practice, the value-producing activity needs also a third
actor, who brings together the owner of the money instruments with the performer of the
productive activity. This Islamic financial institution or bank is the organization which
manages the investment of the money instruments into the real economy, i.e. enhances that
the money could fulfil the role of mediator in the economic life. This practice is more moral
than that one followed by the Euro-Atlantic type banking system of the current money rule
world order.
A single man, alone, cannot make even a single pin in all his life. If it is so, it is even
more true that a whole branch of industry cannot be operated by a single actor. All that is
created through the human civilization is the result of a joint human activity. Therefore, both
the responsibility and the burdens must be carried jointly. How is it possible that, among the
actors of economic life, only the owners of one of the factors – i.e. those who detain the
financial instruments – are not obliged to undertake the higher risk, if the risk of their partners
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increases? Instead of this, driven by their unscrupulous selfishness, they become a destructive
force, which – demanding a bigger interest ransom “due to the increased risk” – makes the
successful economic activity even more difficult, the result of which necessarily satisfies
common needs and interests.
The new Banking Act of the United States
The new Financial Reform Act adopted by the Congress of the United States, which
makes up 2,300 pages together with its attachments and preamble, contains important
provisions even in its very diluted final version, as follows:
Hereafter, the contracts have to be formulated in plain and easily intelligible language,
so that they could be understood even without special qualification. Hereinafter, credits may
be given only if the capacity of reimbursement is assured from the part of the borrower. An
important change is that, after then, capital must be placed behind index trade, and it must be
handled transparently. In the future, it will not be possible to pay bank-saving aid packages
from public money. The large capital funds and investing financial institutions cannot control
the credit rating institutions any longer, which, hereafter, will be responsible and accountable
for their credit rating decisions. Hereafter, the leaders of the commercial banks can also be
held responsible for their decisions.
The parasite European banking system
The Euro-Atlantic region should copy the new regulation adopted in America, since its
financial system influenced extremely prejudicially the economic life. Under the current
regulation, Hungary belongs to the most defenceless group in this area. Such executive
institutions of the international money cartel like the International Monetary Fund established
that Hungary has a great “exposedness to risk”. From 2006 on, the flooding-in of speculation
money, of portfolio capital rocketed. The main cause of this was that the foreign banks
operating in Hungary drew in more and more resources from their mother banks, speculating
on the continuously high interest rate of the Hungarian currency, the forint.
The European banking system is sponging Hungary as a parasite. The central banks
of the EU member states are obliged to keep their reserves in the business banks of another
country, so that it should bring income. Due to the big interest rate difference, an extremely
big amount of these moneys arrived in Hungary. Since the safest money deposit is at the
central bank, a sum corresponding to several thousand billion forints was deposited there. The
interest of these thousands of billions is paid from the budget by the Hungarian state. This
increased the indebtedness of the state even more, because the high interests could only be
financed by issuing new government bonds. Not only the state, but the whole country got
indebted, because the drawing-in of capital of the banks registered in Hungary appears as the
debt of the whole Hungary.
In the autumn of 2008, not the public finance, the public sphere (this is only a part of
national economy, besides the enterprises, the financial sector, the individual households and
the citizens) got indebted, but the whole Hungary, and, within it, the private economy. This
indebtedness was promoted by the representation in Hungary of the international money
cartel, the Hungarian National Bank (MNB), with its specific interest rate policy. The interest
rate of the forint was so high that neither the individuals, nor the corporations could be
credited at such a high interest, because they would have not been able to manage with credits
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at such high interest. Only the public finance, i.e. the budget could undertake this high interest
payable. The handlers of the state debt could do whatever they wanted to the budgetary act.
The increasing of the number of public securities was advantageous for the
international capital market, because more securities on the money market assure a greater
scope of action for speculation. In the sphere of crediting the population, the enterprises and
the local authorities, the banks, instead of actual payments in currency, have only shifted to
the currency-based accounting. The interest rate seemed to be more advantageous, and this
came in handy for the banking system for several reasons. The interbank interest rate of
currencies was generally extremely low, so they could apply a big interest margin. The
mother banks could send the money here expensively, but they took out the income as
expense, although the visibly smaller currency interest rate already contained a rather big
profit margin. When taking back the currency poured into Hungary, the investors were able to
avoid even the possibly occurring exchange rate loss, because, through the credits accounted
in currency, the population would pay more, in accordance with the sum of the exchange rate
loss, and thus the risk could be shifted onto the Hungarian people. In consequence, the
financial investment became almost totally riskless.
In a country, where there is no income production, the indebting cannot be continued
either, because the actors of the economic life do not know where they would reimburse the
loans from. Nevertheless, due to the shrinking of income production, the banks did not have
to be saved in Hungary. In other countries, the governments sanitized the banks got in trouble
with bank-saving packages and long-term undertakings of obligation by the state. In Hungary,
it was necessary to assure the repurchase of the large amount of currency previously arrived in
the country. This requires an ever increasing amount of currency, because much more than the
arrived amount wants to leave, since the sum deposited in forints increased considerably due
to the high interest rate.
The credit of the IMF was needed for taking out the interest from the
country
And here, finally, we arrived at the point where we can tell what even the new
government does not tell the society unambiguously and clearly, up to the present day.
Taking up of the IMF-EU loan amounting to 25 billion dollars (20 billion euros) became
necessary so that this very high forint surplus, transformed into currency, could leave the
country undisturbed. The incomes created in the form of forint interest rates were taken out of
the country by the structures of the international money cartel, using this 25 billion dollars
currency. It was necessary to sham this IMF-EU credit off on Hungary and to burden the
otherwise already over-indebted country with the payment of the interests of this loan, so that
the taking out should be continuous and undisturbed. This was the real cause, which could not
be communicated to the Hungarian society. It was not possible to communicate so much, that
even the current government does not do that.
The Hungarian banks consisting preponderantly of the representations of foreign
banks conspired with each other and started spreading the word that the Hungarian
government bonds are too risky and this is why they are not bought. And they added to this
that the large credits would soon fall due, and they could only be paid by taking up newer
credits, and thus, in order to reimburse the debt falling due, the help of the IMF and of the EU
would be needed. This did not correspond to the facts, since, in reality, there was no
uncovered debt falling due. Referring to the fact that Hungary must be defended from the
attacks of speculation was not realistic either, since these speculators could not be else than
right the bank capital funds fearing their profit.
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Due to the – otherwise unnecessary – currency credit taken up for the sake of the
undisturbed taking out of the income resulting from the interests kept too high in a treasonous
way, the Hungarian government debt rocketed, and the indebtedness of the households and
local authorities increased. It became obvious that, due to the world economic crisis,
infiltrated in the meantime, and to the growing unemployment, also the credit-undertaking
capacity of the economic actors, the households and local authorities was exhausted.
Therefore, they did not have enough income for bearing even the debt service burdens of the
previous credits. At this point, the banks could say that they would not give more credits,
because all of them are considered risky debtors. In this way, such a situation appeared when
the debt service keeps reducing the amount of money necessary for the operation of the
economy, while there is no inflow and the financial processes are frozen. This can have no
other consequence than economic decay.
The money, which accumulates in the banking system, but is not laid out into the
value-producing real economy, brings a considerable profit for the credit institutions. That is,
in many cases, the liquid money that can be used for speculation purposes does not leave the
country, even being covered with currency. The central bank, the Hungarian National Bank
(MNB), accepts unlimitedly this money, at a higher interest rate than that on the international
money market. These investments bring a secure income, because the interests after the MNB
bonds are paid by the central bank, and then, after a year’s delay, they are reimbursed to it
from the budget, in other words the secure yield is guaranteed by the whole of the Hungarian
taxpayers.
The one year delay of the reimbursement makes it possible to hide away the burden
indebting the state. In this way, it becomes possible that the banking system can make a big
and secure income even without crediting the productive economy. Thus, the real economy is
choking in the lack of money, and the families, the state and the labour remain without
income. In April 2010, the MNB received 572 billion forints more money from the
commercial banks, and, by this, increased its two-week maturity bond stock to 4,454 forints.
This passive money is invested in currency abroad, with the considerably lower interest and
yield paid there. At that time, the investment moneys – falling under reserve obligation –
arrived in Hungary from foreign central banks exceeded 4,000 billion forints.
Nevertheless, a considerable amount of money arrives in the country also from foreign
commercial banks. In the summer of 2010, this exceeded 1,300 billion forints. The
Hungarian banks, most of them being subsidiaries of foreign banks, also took up 3,500 billion
forints worth credit, in order to exchange it into forints and to deposit it at a higher interest
rate on their bank accounts at the MNB. In this way, the commercial banks detain 7,000
billion forints invested in government bonds deposited on their bank accounts at the MNB.
They credit the enterprises with a sum corresponding to 7,000 billion forints, and they
spend the same amount on the house-building and consumption credits given to the citizens.
It can be stated that, out of the assets of the credit institution sector amounting
34,000 billion forints, the crediting of enterprises and citizens makes only 14,000 billion
forints, while the share of transactions within the banking system reaches 20,000 billions.
From this, we can draw the conclusion that there is, indeed, enough money in Hungary to
satisfy duly the credit needs of the productive economy and to start the enlargement of the
economy.
The current money system, which operates in opposition with the interests of the
society, is the result of the two-century development and decay of liberalism. How was this
trend born, the dramatic fall of which marks, at the same time, also the end of the period of
Enlightenment in world history? What may come after this era? What will the new financial
world order be like? What will be the fate of mankind in the 21st century?
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From the Enlightenment to the bankruptcy of Liberalism
The Enlightenment preceding the French Revolution was the culmination of all that
rooted back to the mediaeval variant of materialism, the religious movements and the
scientific rationalism. This Enlightenment, which ultimately led to the bloodsheds of the
French Revolution, destroyed those social groups, institutions and values, which served as the
basis of the Middle Ages, and which were determined by the value system of Christianity. In
science, the activity of Newton and his followers means a turning point, while in the field of
social thinking, the concept of progress and the putting of modernism into the limelight
emerged. The modernism – which, at that time, comprised also the humanization of the social
relations, the development of the human rights and political freedoms, as well as the technical
modernization and the gradual building out of the leading role of science in the social and
economic life – differs considerably from how the modernism is interpreted in our days,
reducing it to the technical progress and totally neglecting the social progression.
This kind of modernity took over the leading role from the church representing the
Christian order of value, which was more and more accused of spreading the world of
darkness, of superstition, against the light of science, modernity and progression. It is striking
that, at that time, there is already no word about morality, the universal protection of interest
and order of values being due to each and every man. Today, we already know that this can be
represented consequently only on Christian basis, namely according to Jesus Christ’s such
teachings as “love thy neighbor as thyself” and “all things whatever ye desire that men should
do to you, thus do ye also do to them”.
During the Enlightenment, this kind of modernity and progression meant the alloy of
the current social and economic reality and of a connected world view. The new idea and
norm system called Enlightenment placed the continuous change in the centre. At that time,
the change meant the absolutization of progress, and, with reference to the fact that they were
old, it rejected almost all proven values, which, nevertheless, were verified by the experience
of mankind. The individual and community life, the biological and social existence of man is
connected in thousands of ways to what is old, what is more, exists from the beginning of
time, but must be kept nevertheless, because basic human needs, interests and values can be
satisfied or preserved only in this way.
At that time, the groups of interest that form the world history from the background
already knew that a new cult of change is needed, as that would allow them to achieve their
long-term strategy. As an answer to the over-dimensioned cult of change, the conservativism
appeared, as a reaction to the ideology of modernism that frequently kicked over and wanted
to change everything. The conservativism sticking to the traditions made an attempt at
slowing down the developing changes. As an ideological system of ideas, the conservativism
represented a political programme too. The representatives of this tradition-protecting system
of ideas strived to preserve the state power, since they knew, from historical experience, that
they could achieve their endeavours most efficiently through the institutions of the state.
The history-forming world powers took up the struggle with conservativism making
use of the system of ideas of the liberalism. Their long-term world strategy was served by
the forcing, pushing of liberalism. And the liberal system of ideas developed by them always
referred to the conscious undertaking of modernity. The representatives of liberalism
trumpeted about themselves that they had to influence all the institutions of the society and
state, in order to free them from the remnants of the religious superstition and anti-scientific
irrationalism. They accused the representatives of conservativism of being afraid of the free
man, who had already got rid of the darkness of thinking, of the false adoration of the
superstitious tradition (represented primarily by the church). The liberals, of course, made
Dr Janos Drabik
34
reference to progress, and tried to elaborate a political programme to that. They stated that the
history could only follow its natural course if it encouraged it with conscious and continuous
reforms.
The history-forming world powers were not fully satisfied with the liberalism, and so,
as a new answer, they developed the ideological system of ideas of socialism and later of
communism. Thus, the socialism was an answer to liberalism, but it took up an own image
only after the revolutions of 1848 (which were prepared by the international freemasonry).
Even after the French Revolution of 1789, there were such socialists who regarded themselves
the heirs of the revolution, and, in essence, they were not different from those who called
themselves liberals. The only difference between the programme and ideology of the
socialists and those of the liberals was that, for the sake of progress, the former wanted to
speed up the course of the changes even using violence. This is why the socialists
(communists) were more attracted by the revolutionary violence than by the peaceful reforms.
They found the latter too compliant and patient, which would require a long waiting
time. The forcing of modernization and change in connection with the new endeavours
produced three attitudes. The first one was that the danger originating from the forced change
should be recognized and it should be treated somehow. These were the conservatives. The
second idea was that the mankind should be helped to reach happiness, as rationally as
possible. This was propagated by the liberals. The third standing point was the socialist idea,
according to which the progress and modernization should be speeded up, even by employing
violent tools against the opposition. Thus, the conservatives opposed the changes of the
French Revolution enforced with bloody violence, the liberals opposed this tradition-
defending opposition of the conservatives, while the socialists resisted the careful reformism
of the liberals, considered slow and too tolerant.
The systems of ideas born from the Enlightenment considered the people to be the
bearers of their ideology. Nevertheless, the concept of people is extremely ambiguous and
dim. According to the liberals, all individuals are the independent and autonomous bearer of
political, economic and cultural rights, and the totality of these individuals is the people. The
only question is who can be considered to be an autonomous person capable of independent
will-enforcing. Babies cannot, illiterates cannot, the completely propertiless cannot, strangers
cannot, the insane cannot, criminals cannot, and so on. For a long time, even women were
forbidden to take part in the political life.
Thus, the people’s sovereignty is an extremely ambiguous and dim concept, because it
is, in fact, restricted to a relatively small group of those who detain the capacity of interest-
enforcement. Therefore, the basic precondition of the political democracy is, in fact, the
establishment of the condition system of the economic and financial equality of chances. For
this, nevertheless, such a new property system is necessary, which assures the property and
the connected rights – which guarantee the sanctity of private property – exclusively for
natural persons. And fixes the size of this property depending of the performance of the
given natural person. The legal persons, who are totally unsuitable for satisfying the moral
requirements, would not receive legal protection connected with natural persons.
This principle can be supported by the fact that there is no man who can produce all
alone – totally alone! – even a pin during all his life. And, if so, this is even more true for
more sophisticated products, for a car, a plane or for a whole branch of industry. If, on the
other hand, a man can own only what he produces, during his life, with his own performance,
it comes to light that the natural and civilization environment being at the disposal of mankind
is the common heritage of each and every man. It is the heritage of every man, as it is the
solar system, the planet Earth, with its atmosphere and waters, with its whole natural
environment. On what basis can, then, pass into private ownership, what the man is not able
to produce, either alone, or jointly? This is why the private ownership of the Earth or a part of
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35
it is a conceptual absurdity. Man cannot produce any kind of earth, not even fertile soil, thus it
cannot be in the property of man. The fertile soil is the common heritage of each and every
man, received from those forces, owing to which life works “as accurately and sharply as the
stars move in the sky”.
We know the standpoint according to which such utopian concepts cannot be
achieved. But already the thinkers of the Enlightenment developed several utopias, since it is
an unalienable capacity of man that he strives, within desirable frames, to find the optimal
solutions, the dynamic equilibrium emerging from the reciprocal effects on each other of the
antagonistic forces.
With the emergence of the Enlightenment, the conservatives – in order to protect the
proven interests of the society – put into the limelight such communities as the family, the
church and the larger family: the nation. They emphasized the political rights of those
communities, which preserved the traditions, and thus assured the continuity in the
development of the society.
Against the small communities, the socialists wanted to assure political rights resulting
from the principle of the people’s sovereignty to the whole of the society, as a collective
formation. According to the testimony of history, none of the ideological systems of ideas
could answer satisfactorily the question who was the true bearer of people’s sovereignty, the
real owner of the state sovereignty taking the place of the sovereignty of the removed absolute
monarchs.
At that time, the human society already worked within organizational frames called
state, which detained power licenses due exclusively to it, like, for instance, the monopoly of
the use of armed violence, or the privilege to issue the medium of the economic life, the
money. Therefore, it became extremely important what kind of relation the mentioned
ideological systems of ideas have toward this state power. How can these ideologies
harmonize the state and the society? The establishment of the relation with the state, finally,
resulted in the fact that the number of ideologies decreased from three to two. The liberals and
the conservatives started to reconcile after the Masonic revolutions of 1848. The
conservatives realized that they stand on the basis of the defense of private property, together
with the liberals. The defense of private property enhances and promotes the continuity in the
society, strengthens the family, the church communities and the solidarity of persons who are
dependent on each other.
The conservatives and the socialists were brought closer to each other by their attitude
against individualism. Both of them emphasized the collective interests. On the other hand,
also the liberals and socialists got closer to each other, and so the social-liberalism or liberal-
socialism was born. In this way, the three ideologies became two: the conservative liberalism,
as well as the liberal socialism. This ideology reduced to two, nevertheless, still kept the
principle of development and progress, which is considered to be one of the most basic
liberal ideas. When Marxism has become the representative of socialism or communism, this
ideology also kept the propagation of social progression and modernization.
Thus, in the 20th
century, the ideology of liberalism got a leading role, at least in
terms of the most basic ideas. In the bloodiest century of human history, the liberal parties
gradually lost ground and shrunk, but the large parties achieved, in essence, the liberal
programme. This is why the 20th
century could be called the century of liberalism. This is
why, when this victory of liberalism took place, such thinkers as, for instance, Francis
Fukuyama, thought that, by this, the human history reached its goal, and the history came to
an end.
Nevertheless, the history goes on. It only happened that the liberalism, as a social and
economic system of ideas, exhausted its possibilities, and, after 1989, it started not only to
transform, but also to disintegrate.
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Is there life without ideologies?
In the modern human society, there is not. The cause of this is that the man,
necessarily, thinks in knowledge reflecting the facts, and in interest-oriented knowledge or
ideas expressing his relation towards the facts. Illustrating it with a quite simple example:
according to the rules of formal logics, only one correct statement is possible concerning a
concrete object in our room. The given object (let us say a table) either is in our room or is not
there. This is the scientific knowledge. Nevertheless, the question can also be raised in the
way that whose interest is served, whose needs are satisfied by the fact that this concrete
object can be found right in this room, which room belongs to this and that person? Is it
rightful that this table is right in this room and belongs to this person? Isn’t all this the
consequence of corruption? Ad absurdum, following the interest of the exploiters or of the
exploited, does it serve the social progress and modernization if this table is right in this
room?
From this, we only want to draw the conclusion that all such knowledge in which the
man, the individual and social cognition is present in some respect, is, in a form or another, a
knowledge determined also by interests, i.e. it is endowed with ideological charge. An item of
knowledge is the more disinterested, the less human relation it contains. In principle, the
knowledge material of mathematics, geometry, astronomy and the other abstract sciences, as
well as of natural sciences and technical sciences detains such convergent problems to which
it is possible to give a single correct answer. In the social sciences – in which the man, as a
biological and social being, has a determining role as both an object of research and
researcher – the items of knowledge are oriented towards interests and detain ideological
charges.
The social science is not able to be free from ideology, either. The practice of the
social, economic and political life is even less able. The sciences which study the man and the
human communities, the society and the metabolism between these societies and the natural
environment lead, almost without exception, to items of knowledge which contradict each
other. Of course, the researcher tries to give logical and clear answers to the rising problems.
But these answers contradict each other, because the knowledge reveals divergent problems in
connection with man and the human activity. The ultimate contradiction regarding the
individual man is that he is both alive and dead at the same time. Namely, the death begins in
the moment of birth, it accompanies the whole human life, and, at the end of life, the given
biological structure falls apart definitively and gives place to another structure. The same is in
the course of life: if the given person has no descendants, the death is dominant.
Within the human community called society, the two requirements getting in
opposition with each other are freedom and equality. The items of knowledge concerning
these requirements are in an insoluble relation with each other, since the existence of one of
them is made possible by the existence of the other. This is such an interdependence like
darkness and light. None of them has any sense without the other, since they exist only
depending on each other, being the precondition and the complement of each other. They are
double entities. Freedom and equality are in the same relation with each other. The former
favours the strong, while the latter the weak. Equality limits the freedom, while the
exaggerated equality annihilates it. In the respect of the man and the human society, we
inevitably face the human life and the pair of oppositions characterizing it, the birth and
growth, the decay and destruction, and, in terms of the society, the freedom and order.
The freedom and the equality, with the help of their contrary requirements, the
fraternity, the solidarity, the feeling of community, that is the moral values, can create a
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harmonic unity, completing each other. For the man, this is made possible by the human,
historical experience inherited from the previous generations, which is capable of activating
the higher capacities of man, on both individual and social level. By the unconditioned
acceptance of the universal moral and social justice, the man and the human society – rising
above themselves and leaning on their own superior capacities – are capable of a real social
solidarity and to create harmonic, sustainable human relations.
The original economic liberalism is ethical
The goal of free market economy performed on the basis of equal chances represented
an organic part of the liberal system of ideas. The most distinguished authors of the classical
political economics were, in fact, teachers of ethics promoting the transformation of economic
life according to ethical norms. The classical political economics – from the socialism
hallmarked by David Ricardo, through John Stuart Mill, to the social democrats of the
progressive era – stood on ethical bases. The classical liberals wanted to reform the economic
life in three directions, and to create the market economy based upon the freedom of
enterprise operating on the basis of equal chances.
The first such requirement was that the public power should withdraw, from the
economic life, through taxation, the ground rent, which the ruling class managed to privatize
in the Middle Ages. This land rent should be given back to the community, and should be
spent on investments serving the needs of the community. The second attempt of the
classical liberal economic thinkers was to minimize the incomes originating from monopolies,
in such a way that the basic infrastructure should be kept in public property, and its services
should be made available, against cost or through state subsidies, so that the competiveness of
the economy should be increased in this way. The third reform attempt was that the price of
the goods and services in circulation should be regulated in such a way that the incomes of the
natural monopolies getting into private hands should be withdrawn and spent on public
purposes, or, if they are in private hand, their prices should be reduced.
The annuity and the interest are a “free lunch”
The goal of this classical liberal programme was to harmonize the incomes with the
actually performed work inputs and costs. They wanted, in this way, to deliver the market
economy from the unnecessary income withdrawal of parasite character. In the Anglo-Saxon
lexical practice, “free lunch” denotes the dividend, the illicit profit without any input, which
is built in the prices and, through this price increase, the competitiveness of economy is
decreased, in fact unnecessarily. Therefore, the reformer thinkers of economics of the
classical liberalism paid an exquisite attention to the annuities and rents applied in economy.
They determined these as such an income proceed, which have no counter entry as production
input or cost.
The additional income surpassing the actual costs of production, and the higher prices
appearing as a consequence of them hinder the equal chances and the free competition, so
these thinkers suggested that the state should either ban this kind of income, or it should levy
a tax of such a measure on it, that it could be regrouped for common goals. From the
taxation of the land rent and from the withdrawal of the higher prices resulting from natural
monopolies, they hoped to harmonize, in this way, the prices with the technologically and
socially necessary costs of the production. Entrepreneurs and employees supported this liberal
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taxation system, since it made it possible to withdraw the market prices surpassing the prices
representing the real value.
This is why the value and price theory had a strongly political content. The taxation
system, which focused on the withdrawal of the land rent, in fact, withdrew that feudal
ransom, which the landowner aristocrats of Europe demanded for themselves from the
conquest of the given country. This is how William the Conqueror, Prince of Normandy,
who otherwise was of Viking origin, who conquered England, in 1066, as a French sovereign,
became the founder of the rule of the English aristocracy. He and his vassal aristocrats
collected land rent, on the right of the conqueror, from their defeated subjects of Anglo-Saxon
and Celtic origin.
The elaborators of the classical value and price theory determined the production
inputs in such a way that it was possible to calculate which costs are necessary, and which
ones originate from the monopoly position, and they have to be limited with anti-monopoly
price regulation. When the public utilities in private ownership, but regulated by the public
power were created, the more modern variants of the “free lunch” have also turned up, in the
form of corporate bonds and shares given to the owners, the managers, as well as to
strategically important politicians. These were already charged with the interest payable and
the dividend payment, which was transferred to those who utilized the public utility services.
All this raised the price of these public utility services over the production costs.
These theories were elaborated by the French physiocrats, as well as by Adam
Smith and his contemporaries, among them by John Stuart Mill. Later on, Karl Marx
joined them, who, continuing the work of the classics, analyzed the problems of wealth,
property and income, as well as those of the income produced with work and that without any
input. According to him, the wealth created with performance is that one, which is produced
by somebody with his own work. On the other hand, the property obtained by somebody
without his own effort and performance, cannot be considered to be a wealth created with
own performance. Such wealth-making is the inheritance, the enforcement of special
prerogatives, and the additional income originating from natural and artificial monopoly
position.
This formation of wealth and income is considered to be, by the thinkers of the
classical liberalism, such an income, which is not a necessary element of the production and
distribution. Therefore this additional income must be withdrawn through taxation and must
be spent, in this way, on the community needs. The beneficiaries of the acquired interests and
prerogatives did everything possible to maintain their tax exemption, to withdraw the money
system from under control and to keep the real estate property, as well as to protect their
monopoly position. The ideologists being in their service did not bother about what the wealth
without output and the economic parasitism was. They simply stated that all existing wealth
and income production originates from value-creating activities.
Everyone’s activity is worth the amount of money paid for it. They did not take into
account the fact that there was also an income increase without any output. And if there is
nothing like this, because we do not talk about it, then there is nothing to be drawn away with
extra taxes. These economics thinkers coming after the classics did not want any longer to
conduct arguments about the structural and legal reform of the value-producing economic
activity. Being narrow-minded, they only dealt with the problem of demand and offer. By
this, they closed out the problem sphere of the wealth creation, of property, of the credit-
raising of banks and of the income without performance from the public thinking and public
debates.
They stated that the government expenses, the state aids and taxes represented such an
unnecessary economic load, which, starting from their nature, does not bring any profit and
income. It is contradictory to this the fact that the building of the infrastructure, of the roads,
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railways and traffic systems, the creation of the educational and scientific institutions, as well
as the support of the research and development made it possible that the economy could
cheaply get efficient services. Economists know that the biggest investment in nearly all
economic activities is the infrastructure of the given country.
The enterprises that got into privatized private ownership against credit money
obtained extremely much extra-profit from services of this kind, operated from public
expenses, among others in the 1980-ies, as well as following the disintegration of the Soviet
Union, in the successor states that became a free prey. The raptor vulture capital bought up
the enterprises in monopoly position, being in the service of community interest up to then,
and thus obtained an additional income surpassing the actual costs to a considerable extent.
The marginal utility theory also avoids the expropriation with private purpose of the
wealth originating from national property handled by the state. It tries to explain the value
from the side of the satisfaction of needs, instead of that of the production, it hides away that
the value is created in production, and neglects that the change of needs originates from
production. It handles the value of unlimitedly multipliable and of rare goods in a similar way.
In the case of the decisions of consumers, does not take into account the brainwashing of the
advertisements, the deception, the withdrawal of different fees and annuities, as well as the
established practice of pricing. As a result of all this, it considers the evolution of prices an
agreement occurred at random between the sellers and the buyers.
They do not take into account the fact that the producers and the consumers bring their
decisions in an essentially more complex economic system. They state about the credit that it
is produced by the savings-makers through limiting their own consumption. They do not
admit the fact that the banking system can freely produce the interest-bearing loans, i.e.
the super-rich groups of interest living on annuities and yield of interest, the financial
enterprises, the funds operating with risk capital make even more money from money, and
the consumer has no role in this process any more. They try to justify the interest paying with
the time preference of the individuals. The person who wants to consume impatiently and
quickly, takes up a loan for this sake, and pays interest for the possibility of immediate
consumption.
This superficial explanation does not take into account the fact that the consumers get
themselves indebted for the sake of satisfying their very essential needs. In order to have a
home, they take up credit on mortgage, and, so that their children could study, they utilize
student credit. The same situation is when they can reach their places of work only by using a
car, or they can pay for food and clothes only with a credit card.
Who started the financial crisis in 2008?
In 2008, when the real estate mortgage bubble burst out, the conducted proceedings of
the authorities revealed that in 70% of the speculation performed with secondary credits on
mortgage, the immoral, money-grubber brokers, real estate appraisers and jurists. When the
securities classified AAA by the bribed credit raters suddenly lost their value, this, finally,
forced the state to substitute the losses occurred from fraudulent credit risk barter transactions
with bank-saving packages. All this could be fought out by the lobbyists paid by the Wall
Street.
The banking system is not willing to invest, any more, in the processes requiring
necessarily a longer payback period of the value-creating productive economy. Actually, the
financial sector counts with the shortest payback period possible. Therefore, it favours the
circulation of money performed through speculation techniques, the production of money
from money. An amount equal to the gross national product of the United States keeps turning
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in the New York accounting house and on the Chicago commercial stock exchange daily.
Here shares and securities, credits on mortgage, bank loans in packages, as well as contracts
with the character of bets made for future purchases and sales change owner.
The performance of the transactions hardly requires more time than the participation to
the gambling performed in casinos. These financial activities are already controlled by
computer programmes, and consist of capital leverage transactions achieved with the existing
financial devices. This kind of financial activity sacrifices the long-term economic interests to
the short-term and short-sighted financial acquisitiveness. The speculation motivated by
greediness, the unscrupulous fabrication of money from money neglects totally the social
responsibility lying on the economic activity. The mechanism of compound interest pushed
out the requirement of social justice and solidarity from the economic life.
The debt is credit debt. In North America and Europe, 90% of the population is
indebted to the upper 10%. The currently taught economics does not deal with this extreme
financial split. They analyze the money and the credit only from the point to what extent they
affect the prices and the wages, and they do not deal with the evolution of the price of
property items. They also neglect the question to what extent the trade is financed from
credits. Thus, for instance, did not deal with the issue concerning how the credits on mortgage
contributed to the increasing of the prices of land and house real estates, as compared to
wages and personal incomes.
Following World War I, the Anglo-Saxon banking model became dominant in the
North Atlantic area, which offered credits primarily by demanding real estate or mortgage as
cover. So, the main endeavour was not that the borrower could enterprise from that capital
and produce value in the real economy, from which then he could reimburse the loan together
with interest, but that the credited person should assure a cover, from which, in case of failure
of payment, the bank could immediately satisfy its demands. Therefore, as a consequence of
this model, the emphasis was laid, instead of financing the industrial and commercial activity,
on the crediting against mortgage.
In 2010, in the Anglo-Saxon countries, 70% of bank credits are covered with real
estates. The reform concerning the withdrawal of the land annuity, urged on by the classical
liberal economists, lost its timeliness by the fact that the overwhelming majority of the
population have become the owners of their housing estates. In this way, the owners of real
estates of commercial and industrial character could also withdraw themselves from the scope
of the property tax levied on real estates. They carefully kept the fact quiet that the
elimination of this taxation serves primarily the interests of the owners being at distance.
In the second part of the 20th
century and at the beginning of the 21st century, the
prices are considerably higher, due to the other costs and fees burdening the interest and
money circulation, than the value that would occur through the summation of the inputs
necessary for the production of these goods. The prices keep going up as a consequence of
these financial burdens, while the production costs and inputs do not change. It is well-known
that nowadays the banks produce the money and the credit with the help of computers. The
government could do themselves all this, as they even do it when foreign currency arrives in
the country and it is exchanged into the money being in circulation in the given country. In
Hungary, for instance, the Hungarian National Bank (MNB), which received the monopoly of
money issuing from the state, issues forints only when foreign currency arrives in the country.
But if the currency leaves the country, the MNB withdraws the same amount of forints from
circulation.
Nevertheless, if a state (in Hungary the MNB) would issue money for domestic needs,
it is already accused by the international financial community and its system of institutions
that it generates inflation and that is detrimental for the whole of the money system and
economy. The cause of this different judgment is that the transnational money cartel and the
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financial institutions owned by it can only outlay, on high interest, the amounts of money
produced by them also from air, if they forbid this money issuing and crediting function for
the states and keep this prerogative exclusively for themselves.
In principle, the credits laid out for public and private purposes have a similar effect, if
both of them are spent, for instance, on the operation of the value-creating productive
economy. But the effect differs, if, for instance, the commercial banks owned by them issue
the money on property purchase, financial speculation or on financing securities. The states
usually issue money with the purpose to finance the domestic production and consumption,
and to assure the working assets necessary to pay the wages and to buy the articles of public
necessity and services.
Neo-liberalism is anti-liberal
By returning to the principles of the original liberalism, this practice could and should
be changed. The real obstacle of this is that the money rule groups of interest reject the
principles of economics elaborated by the classics. This rejection is headed by the
representatives of the School of Chicago, referring most frequently to the defense of market
economy. The followers of this theory of economics know well that the ideology of free
market economy demands the strict control of the universities that teach economics. This
must be completed with the strict keeping in hand of the mass media, even with the utilization
of the state violence, where necessary.
Here we can raise the question whether the planning of the social and economic
processes is done by the public power or it is transferred to the financial structures in private
ownership. The representatives of the School of Chicago are struggling, with all their power,
against any intervention of the public power, and they named the centralized planning,
controlled by the state, the state planned economy as their main enemy. If, on the other hand,
the planning of the economic life is in the hands of the privately owned financial institutions,
it can already be considered a good thing. Here we are facing the phenomenon of the political
ambiguousness, of the so-called “doublespeak”.
The extremist adepts of the free market economy consider free thinking to be their
main enemy. The works of the classics were exiled from the teaching of economics, and even
the history of the economic theory does not belong to the study material any longer. The
followers of the neo-liberal School of Chicago censored the return to the teachings of the
classical liberalism, and labeled it a heresy. The planned control of economy is a bad thing if
it is done by the public power, and a good thing if it is performed by the private institutions
owned by the money oligarchy.
Here it is necessary to stress again the fact that the thinkers of the classical liberalism
wanted to create the free market economy in the way that they should liberate the industrial
capitalism from the feudal limits that restrict it and live it off. Firstly, the land-owner
aristocracy, which had conquered countries and settled over them, had to be deprived of the
land annuity seized as a war indemnity. And the states got indebted, because, since the
transnational money cartel was established, the individual governments usually financed their
wars from the credits borrowed from this money cartel. They paid for these loans and their
interests, beside others, by ceding the prerogatives belonging to the state sovereignty to the
private property of the money cartel. Such a ceded prerogative was the monetary sovereignty
of the state, which, among others, includes also the issuing of money, as well as the regulation
of interest and exchange rate.
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Ethics and economy
Adam Smith, the outstanding representative of the science of economics was the
professor of moral philosophy at the University of Glasgow. He published his work titled
The Theory of Moral Sentiments in 1959. In it, he defined the mutual sympathy between men,
the solidarity as the basis of the social coexistence, and he also considered solidarity the main
motive of the value-creating work. He published his main work, The Wealth of Nations in
1776. It is considered to be the first systematic elaboration of the history of economics and the
work with the greatest effect of the western classical liberalism.
The physiocrats defined the source of new value in the fertile land. Adam Smith, on
the other hand, traced back the appearing new value to the value added created with work and
to the division of labour. The book has proved to be the standard work of classical economics.
The basic notions of this book were taken over not only by Thomas Malthus or David
Ricardo, but even Marx used the notions of Adam Smith. The Wealth of Nations emphasizes
the importance of free trade. The “invisible hand” which arranges the relations in the free
market is the demand and supply.
This invisible hand is what regulates the resources of the nations, as the result of the
different economic actions and reactions. The determining forces of demand and supply create
that price too, which can be considered natural. Adam Smith opposed the intervention of the
state in the economy, and, as the professor of moral philosophy, he had reserves against the
politicians, since their decisions are governed by short-term and particular interests. He
considered the self-interest as the main motive of economic life. Nevertheless, the man can
only follow his self-interest if he supplies a service to other people, i.e. he offers the result of
his own work in exchange for the result of other people’s work. And so is that division of
labour created, which is one of the factors of social progress.
Smith already used the term of natural economic order, which later was elaborated in
detail by Silvio Gesell. Smith considered those conditions to be natural within which the
beneficial effects of self-interest and the spontaneous laws of economic development are
accomplished the most efficiently. The announcement of the laissez faire, the principle of
intervention-free economic freedom of action is linked to his name. At Smith, the laissez faire
meant the free movement of the labour force, the free buying and selling of fertile land in
unofficial dealings, the termination of the state regulation of industry and trade, and the free
foreign trade. The wealth of the society depends on the number of those who deal with
productive work and of the productivity of work. The latter is considerably influenced by the
degree of development of the division of labour.
It was Adam Smith who already considered exclusively the labour as the source of
value. He regarded the wages the counter value of the work spent on the production of goods.
He also realized that the person who invests the money into the activity of the value producer,
gets a higher value, surpassing the wages, than that who invests his workforce. In the course
of value production, the money investor is the capitalist, and he takes away the value added in
the form of profit. Adam Smith also established that, within such capitalist relations, the value
of the given product is not determined by the quantity of work contained in it, but the quantity
of work that van be received for it.
Some scholars perceive an irresolvable conflict between his two major works. In the
first one, he denominated the sympathy for others, the solidarity as the basis and the mover of
the social activity, while, in The Wealth of Nations, the self-interest.
According to the writer of the present lines, this apparent conflict can be resolved if
the actors of the economic and social life detain approximately equal interest enforcing
capacities, and, in this way, the self-interest enforcing can change into a moral attitude based
upon solidarity. The confronting selfish attitudes of equal force mutually refrain each other,
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and, as a vectorial component, the altruistic attitude, respecting the interests of others,
appears. Due to his fallible character and dual nature, the man, getting in superiority in any
way, tends to misuse this superiority. This can only be refrained if the other man can enforce
his own self-interest with an approximately similar power.
It is not difficult to realize all this. A bigger problem is how people could be made to
be of equal power. The precondition of this is that each and every man should own only what
he himself has produced with his own performance and with the optimal development of his
capacities. All that a natural person cannot produce all alone is the result of the common work
of mankind (including the generations preceding us), and is a common heritage of us, as is the
Sun, the Earth and the man-made artificial environment in which the man performs a
metabolism with his natural environment called human civilization.
This is why we stated already in the previous part that we could become free human
beings detaining an approximately equal interest enforcing capacity only by the basic change
and decentralization of the property system and, within it, the money wealth system, the
radical decreasing of the number and role of the legal persons, and the restoration of the rights
of the natural persons. Only that person is a free man, who detains the results of his work, and
has no possibility to take away the result of the work of his other fellow human being, either
using armed violence or financial techniques. Only those human beings can be moral, who
have interest enforcing power, because only in this way it is possible to enforce the keeping of
the universal moral requirements which are due for each and every human being.
Coming back to The Wealth of Nations, Smith, in fact, struggled to make his country,
England, competitive, by reducing the measure of the costs spent on business activities and of
the costs of living. He wanted to reach this with the termination of the land annuity, as well as
with the imperative that the states waging wars of conquest should not pay their debts of war
by levying higher and higher taxes on the society and economy. Due to the interest and to the
compound interest mechanism, introduced by the forming international money cartel, the
fulfillment of the debt service became a bigger and bigger public burden, which hindered the
normal operation of the economic life.
The income withdrawal of a parasite character, similar to the land annuity,
gradually extended onto the withdrawal, for public purposes, of the surplus income
originating from different monopolistic situations, as well as onto the demand of the
termination of such incomes without counter value. In Great Britain and France, the state debt
increased to such an extent that the governments were compelled to levy taxes in such a
measure, which already overloaded the economy. In order to be able to pay their debt service
burdens and the interest burdens growing to an increased degree, the states created state
monopolies to sell them in the form of government bonds. In England, the East India
Company is established in 1600, and then, in 1694, the Bank of England and, in 1711, the
South Sea Company. Adam Smith opposed the establishment of these state monopolies. And
then, with the development of the socialist system of ideas, the programmes of the social
democrat parties started to include the provision that the public purpose and natural
monopolies must be kept in the common property of the given nation.
Privatization of the profit, nationalization of the losses
The neo-liberal political movements and politicians referring to the classical
liberalism, but, in fact, achieving right the contrary of it, withdrew the monopolies from the
national wealth serving the interests of the community, and then, through privatization, gave
them into private ownership. This was completed with the fact that the incomes, the yields
and the annuities without any return service were gradually exempted from taxation. In the
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neo-liberal period hallmarked with the names of Margaret Thatcher and Ronald Reagan,
exactly the contrary was achieved of what Adam Smith and the other classical liberal
thinkers represented.
All this was even capped with the fact that the financial twins of Bretton Woods, the
World Bank and the International Monetary Fund, by enforcing the demands comprised in the
Washington Consensus, burdened the indebted countries – among them, the successor states
of the Soviet Union and some of the Eastern European countries – with nearly hopelessly high
costs. The cold war was won by the International Financial Community, exerting the supreme
power over the West. As a winner, it collected also the war indemnities due to it. In order to
seize the wealth of the conquered countries, the actors becoming the strongest of the world
power created uniform economic and political rules of the game, through the international
institutions established and controlled by them.
The representatives of the leading money rule structures imposed ten demands in the
so-called Washington Consensus. For the conquered countries, they prescribed the strict
public finance discipline, the strict control of expenses spent on public purposes, the
continuous tax reform, which favours the investors, the liberalization of financial affairs, and
the limited use of currency rates in the economic policy. The conquered states have to
terminate the defense of their economies, and have to withdraw the laws serving the
protectionism. The foreign trade has to be liberalized, but the foreign capital investments have
to be maximally supported. The passing into private property, i.e. the privatization of the
public goods is compulsory, which has to be completed with the decrease of the controlling
licenses of the public power, the deregulation. The private property system and its institutions
have to be strengthened.
The goal was to operate the economies of the individual national states with credit
money, which states, in this way, cede the value produced by them, in the form of debt
service, to a parasite, annuity-collecting, supranational class. This is served by the taxation
system enforced by the Washington Consensus, and the privatization deeply under value of
the public property. As a result of the Washington Consensus, the countries defeated in the
cold war paid much more war indemnities and compensations than if they were militarily
defeated in a war.
In this way, an annuity-paying society, pushed into debt dependence, was created,
which we can also call money feudalism. If the countries forced into debt trap struggle with
financial difficulties, such institutions of the money rule world order as the World Bank and
the International Monetary Fund intervene as the executors of the transnational money cartel.
In order to fulfil their debt service obligations, the individual countries are forced to
continuously raise their taxes and to sell out the infrastructure making up their national
wealth. As a consequence of this, the individual national economies become weaker and
weaker, and, besides the national wealth, they were forced to sell or to pledge the non-
working national wealth, what is more, to give over some profitable public functions, like
the exertion of monetary and fiscal sovereignties. In this way, those bipolar societies come to
life, in which the productive wealth and the money wealth get into the exclusive property of
restricted groups of interest, while the majority of the society becomes pariahs in a dependent
position, living on wages and salaries or aids, who can be regarded to be the serfs of the
modern money feudalism.
The great figures of the classical liberalism wanted exactly to prevent the appearance
of such a class sponging on annuities and interests, or to exclude the existing one by imposing
that the goods and services created within the productive economy should not include the
unnecessary costs lacking any counter service. They wanted to annihilate all costs which were
not absolutely indispensable for the production of the given value-bearing product. On the
other hand, in the current money rule system, those persons get the tax credits who make up
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an unnecessary and parasite social class, living on allowance and interest. According to the
neo-liberal and neo-conservative systems of ideas, the renters and the interest yield bearers
fulfil a positive role in the economic life, since they increase the value added by pressing out
higher rents. The neo-liberals or the neo-conservatives create the appearance as if the
privatization of the public property would make the real economy more effective from the
point of value production.
The saving of expenses got such an extreme character, which already annihilates the
normal conditions of work, increasing the operational safety conditions, and the already high
remunerations of the owners, directors and managers were increased even more with the sums
saved this way. The sums saved in the productive economy become bonuses, interests and
different extra allowances. This behavior of the money rule layer, first of all of the bankers,
was a parody of all what Adam Smith stood up for in his works. The investor financiers made
a profit from selling their allowance-raising privilege on credit, and from presenting the
interest paid by the buyers as a deductible expense, which, in this way, is built into the
business activity. Thus, a general increase of expenses was created, which unnecessarily
increased the production and living costs of the whole society. The financial sector makes its
clients compete in the respect of which of them can pay more rent, allowance or interest to the
creditors.
Thus, the allowance originating from the monopoly position is transformed into
financial overhead costs or surplus expenses. In the real estate sector, the buyers agree to pay
allowance to the bankers, because they expect that the real estate prices will rise and thus their
capital invested in real estate will grow. In America, the current taxation system enhances this
kind of getting rich in two ways. On one hand, it treats the interest paid after the loan on
mortgage as a cost that can be reduced from the tax of the normal business activity, on the
other hand, less tax must be paid after the property part increased in this way, than after the
income produced with work performance and the wages. Therefore, the investments into real
estates enjoy essentially higher tax credits than the investments into the productive real
economy.
From 1980 on, the groups of interest enjoying different allowances gained one victory
after another, and gradually reversed on the contrary all that the representatives of the
classical liberalism fought for. With the gradual driving into the background of the industrial
branches, the post-industrialism appeared, which proved to mean nothing else than the
financial sector took over the leadership from the productive sector, and that the money
economy got into a ruling position, taking the place of the economic system based upon the
primacy of the productive economy. Already Aristotle differentiated the money economy
from the economy, and called it not “economy”, but chrematistics. In this system, the
emphasis is not on the value-creating productive activity, but on the money turnover, and its
essence is making money directly from money, if possible, with the exclusion of the
productive economy.
As a consequence of the system of chrematistics i.e. of making money from money,
all debt service, interest and financial yield – including the subventions received from the
state and the consolidation sums – flows back to the financial sector. This flowing back of
money, nevertheless, is limited by the situation in which the financial sector already
expropriates the whole of the yield, surplus value of the economy. In this case, no returnable,
investable capital remains in the productive economy. Due to the debt service transferred to
the creditors, it is not possible to replace the used means of production any more, and to
introduce newer, more developed technologies. In this way, the state gets lesser incomes, and
thus no resources remain even for the development of the infrastructure being in public
property. The individual persons, families, enterprises, and, equally, even the state gets
indebted to such an extent that it will not be able to buy enough goods and services so that the
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flow between production and consumption should be continuous. The demand is decreasing
and the productive economy is shrinking – at present, this is the greatest problem appeasing
the world economy.
Due to the allowance and interest withdrawal of the financial sector, and to the huge
payments, bonuses and other grants allocated to themselves, there is not enough money any
more to help, as a medium, the continuous and efficient operation of the productive economy.
This is why the real liberal thinkers emphasized, for instance, the necessity of the termination
of the land allowance and any other allowances, because they regarded the land a factor that
was similar to the air, the water or the sunlight. The property rights, which mean a prerogative
concerning a certain production place, do not actually contribute to the production, represent
only a financial claim concerning the produced value. An artificially created legal
environment, which assures this withdrawal of income. The index numbers of the routinely
used GDP do not reflect the actual situation of the economy, because more and more part of it
is constituted by the financial, assurance and real estate sector, which is a cost-increasing
burden on the value-creating productive economy.
Did the neo-liberalism fail?
In his study titled The importance of the “Washington Consensus” for the post-
socialist countries, Péter Mihályi calls the classical liberalism and the neo-liberalism rivaling
paradigms. (The paradigm is the ensemble of the general scientific theses accepted in a given
epoch, the scientific world view and determining order of values of the given period.)
According to Mihályi, the Washington Consensus and the debate about it are also part of a
paradigm competition, which lasts for 250 years. According to Mr. Mihályi, teacher of the
Pannon University in Hungary, the rivaling is going on between, on one hand, the
transcendent world view, nurtured by religious roots, and, on the other hand, the rational
world view that can be traced back to David Hume and Adam Smith. The transcendent
thinking, the great world religions and, in most cases, even the art are trying to find the
elements of equilibrium, harmony and justice in the world. They suppose that these high goals
should assert themselves surely.
From this point of view, the capitalism, identified wrongly with the market economy
by Mihályi, is inherently bad. Partly because there are many frail, selfish and greedy people,
due to whom millions live in poverty, partly because the institutions established by frail,
selfish and greedy people work badly. The natural need of people for the assertion of the
universal moral was traced back by Mihályi to the biologically determined need for security
and demand of stability. Namely, because these are reflected in the religious dogmas and in
the artistic abstractions.
Mihályi opposed the natural need for the universal moral with the Anglo-Saxon
tradition, which, starting from the utilitarianism, places the competition and the risk
undertaking into the centre, because it considers them the moving forces of progress. Mihályi
adds to all these that, finally, this approach also starts from the biologically determined needs
and possibilities of man. Here he refers to a fact which is already known on the basis of the
work of Adam Smith, i.e. how are the scarcity and the division of labour logically connected
and how will all these make a profit for the individual and generate wealth for a country. Due
to the finite nature of human life and the limited character of the available time, an advantage
is generated by the institutionalized division of labour, which serves as the basis of the
economic competition.
Mihályi also mentions that those who defend, in a committed way, the Washington
Consensus, argue that there are not two types of economics. By this, they also assert that the
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current model, the market economy model operated by the most developed countries, i.e. the
Anglo-Saxon model of the existing capitalism has no alternative. Therefore, the rising
countries have to follow the same way as the developed ones, and they even have to apply
approximately the same tools. In the following part of his paper, Mihályi makes reference to
those authors who realized the close interrelation between the positive and negative effects of
market competition. He refers to the Austrian Joseph Schumpeter’s concept of Creative
Destruction, as well as to the fact that the Hungarian economist, János Kornai has
emphasized for many decades that the specific features of the capitalist and the socialist
system cannot be mixed on discretion, namely that there is no third way, no social market
economy, and the model of the welfare economy is not viable on the long run either. After
this, he quotes Ferenc Jánosi, who, on page 341 of his book published in 1975, already
wrote:
“If it were easier to destroy the fortress of the enemy than to reinforce that of our own,
the competition would only refrain the development. The social order, which defends the
inviolability of private property, forces the entrepreneur to make his own tools perfect,
instead of destroying the competitor.”
Mihályi also makes reference to the fact that it is not a new phenomenon to evoke
greediness and speculation in connection with the crises and financial bubbles. The answer to
this can be that when, on the other hand, the speculation, wriggling out of all regulations and
responsibility, reaches incomes amounting to several trillion dollars, and transforms the
financial system of the world into a global casino, causing immeasurable damages to the
whole of world economy, putting millions of people out in the street, we are already facing a
totally different quality, which cannot be simply dismissed by saying that there is no market
economy without crises. It must be said clearly that this economic system is not a market
economy, but the contrary of it, where the power economy of the private monopoly holding
the money system in hand, the transnational money cartel took the place of the free
competition market economy operating on the basis of the equal opportunities and the
freedom of enterprise.
This is why we cannot accept that standing point of Mihályi, the apologetic
representative of the money rule world order, the prejudiced defender of neo-liberalism,
which he wanted to express with the words of Márton Tardos, a liberal politician and
economist: “There are many arguments supporting that the rules of the game of the capitalist
world economy should be changed basically. Who, in this case, has a direct impact on Good
Lord, should try to arrange all this through Him, and should not expect the Hungarian
Government to run its head against a wall.”.
In this writing, on the basis of the previously presented facts, it is obvious that both
Mihályi and Tardos identifies the international money cartel following its unscrupulous
selfishness simply with the “Good Lord”. Many volumes could be written about how the
Good Lord differs from the transnational money cartel. The writer of the present lines
considers God to be the absolute law and truth, the universal moral, which cannot be
relativized. Therefore, he rejects the relativizing attitude, which denies the possibility of
existence of the absolute truth. The denial of the absolute truth makes it possible that the
relative truth “on duty” is always that one, which is declared the current truth by the financial
elite that seized the world rule. In this way, the truth – and its human aspect, the justice – can
be changed from time to time.
God, as absolute law and truth, means that it is self-consistent, it exists absolutely
independently, autonomously and infinitely. Nobody and nothing can be equal to Him and
cannot influence Him. All whom and what can be influenced by man or any other factors
cannot be, in fact, the omnipotent God of the universe. Only a so interpreted God can detain
possibilities, which are infinite in space and time, knowing no limits of any kind. On the other
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48
hand, that transnational money cartel, which has depraved the financial system of the world
into a gambling casino, is surely impressionable, so is not a “God” even if it considers itself to
be so, and if it could grow its own freedom into the freedom of unlimited abuse of others
freedom.
The Mammon, the money worshipped as an idol, incarnating the unscrupulous greed
for gain, can be deprived of its demigod character. The idol of the money, this false god, can
be knocked down, even with a well-directed stroke. If the nations of the word took away the
exclusive right of issuing money from the transnational money cartel, and if the global private
money monopoly was transformed into a public money system, where the monetary
prerogatives would be given back to those who perform value-creating work and to the public
power representing them, then it would immediately come to light what a fragile idol god is
the transnational money cartel, which seized the world rule. The power of the money cartel
deprived of the money monopoly and the prerogative of interest collection would melt before
our very eyes, like the ice in the sunshine.
How does the money rule world order work?
The global private money monopoly and the interest mechanism operates, as an
economy of power, the system, which is still invariably called free market economy. And the
decisions of the financial speculators are presented as if they were the result of the game of
market forces. The current economic system works as a power economy, which essentially
denies the free market economy. In the previous part, we tried to prove that it is exactly the
contrary of what Adam Smith and David Ricardo has defined as free market economy. The
representatives of the classical economics consider the market economy free if it does not
have to bear the overhead costs generated by the redundant annuities, if it is free from the
unnecessary production costs, if it is not settled on by stock exchange speculations meaning a
needless load. For the neo-liberals, including Péter Mihályi and his fellows, free market
economy means that it gives the parasitic speculators a free hand, without any restrictions,
and, in this way, they can extort, unscrupulously, no matter how high prices from the society.
In the new interpretation, that economy is a free market economy, which gets rid, at
discretion, of any kind of regulation, public power control and social responsibility. In their
eyes, the free market economy is which can lie to the consumers without any consequences,
can increase, at discretion, the taking away of the results of other people’s work, and which
can indebt, unlimitedly, all persons, enterprises and communities, pushing them into debt
dependence. In this way, it can rule freely within the boundaries of the financial feudalism
created by itself, where the money cartel can determine the rules of the game at discretion.
Those, who speak about free market economy, in fact, deliberately misinterpreted the original
meaning of freedom, and, in this misinterpretation, the leading role was played by the group
of economists called the Chicago School.
But even Milton Friedman, the founder and Nobel Prize winner representative of this
school, wrote in his work Capitalism and Freedom, published in 1962, that “the money
supply should neither be determined by the politicians, nor by the independent bank of issue,
because in this way small groups take away others’ freedom, but a public regulation should
control the issue of money in a scheduled pace, proportionally with the growth”.
Who detains a considerable wealth today, in this degenerated and decadent economy,
in fact, does not produce money at all, because nearly everything has changed into costs
deductible from taxes. The giant raptors of the legal entity jungle of the transnational money
cartel, the corporations, apparently do not produce any income, because what could be so, are
all costs. The IRS, the Internal Revenue Service, having a confused legal background,
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created by the money cartel, allows the corporations to deduce all their business expenditures
from their tax as costs, but they do not spend these expenditures on their business and
economic activity at all. They use these sums of money withdrawn from taxation to buy up
enterprises, in order to liquidate their costly departments, and to sell out the profitable ones.
By this, they do exactly the contrary of what the3 value-producing economy would need.
The financial sector settled onto the productive economy is not part of the economy
any more. The same can be said about the owners – at least, according to the records – who
are separated from the production. This totally detached sector, in fact, only sponges the
productive economy which produces goods and services. This is why the economists
following the principles of the classical liberalism divided the economy into productive and
non-productive work, into wealth and overhead costs, as well as into actual income and costs.
This approach endangered the beneficiaries of the annuities collected under different titles,
because the public power could withdraw this income through taxation and could spend it on
financing the public tasks. The anti-state attitude of the already mentioned Chicago School
can be led back to this. Namely, what the class enjoying the annuities and interest yield has
obtained for itself, the state power should not take away and give back to those from whom
the parasites withdrew it.
The transnational money cartel continuously spends hundreds of million dollars to
mislead the public opinion through the mass media and the school system. It enforced that the
history of the economics thinking should not be taught in higher education institutions any
more, and, instead, a continuous brainwashing should be applied on students. Such a typical
device, deluding the thinking, is the reinterpretation of notions. Everybody has an income
earned through performance, even if the enterprise managed by himself goes bankrupt. The
person who gains an income without any performance, risk undertaking and work, is still the
legal owner of what he inherits or acquires in any other way. The public power cannot take
away anything from these wealth growths and incomes through taxation, since all these
incomes – including, lately, the many billion dollar incomes and bonuses of the controllers of
the Wall Street, more exactly of the Goldman Sachs – are considered incomes earned with
work, from which the state is not allowed to take away anything.
The King is naked – There is no need for banks in their current form
In the well-known tale, everybody was praising the wonderful new dress of the King,
but only a naïve child shouted that the King is naked. The writer of the present lines considers
himself a naïve child like this, because he asserts with deep conviction that the banking
system, in its current form, is totally unnecessary, and the economic life would operate more
efficiently and more justly without it. Let us take, for instance, the crediting practice of the
banks. In the United States, the commercial and investment banks use 70% of the available
money on giving credits on mortgage. In the textbooks of university teachers forced into the
role of a steward, one can read that the banks use their money to finance the productive
economy, so that an appropriate amount of mediating agent should be available for the value-
creating activity. On the other hand, the truth is that they, primarily, give credits in exchange
of real estate property, i.e. the credits supplied from money made of air must be covered, in a
proportion of 70%, with real estate wealth.
The banks of investment are ready to give huge loans to those who speculate on
buying up enterprises. They also give loans to broker houses, so that they could buy shares,
which have already been issued. They are pleased to give credits also to foreign states, but
those credits became more and more prevailing, which were supplied with speculation
purposes, for the sake of doing business with derivates. Nevertheless, on the contrary, they
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spend considerable amounts of money (and here also, primarily the United States) on military
expenses, waging wars, as well as on political movements and organizations supporting them.
As a fig-leaf, a smaller amount is spent on public welfare, social security, health care and,
sometimes, on infrastructure development.
From the income of the corporations owned by the money cartel, hardly anything
remains for research and development. Even if the banks supply credits for this purpose, they
have to be paid back to them until the last cent. The real result of the crediting practice of the
banks is the pushing-out and minimization of research and development, and the pumping of
the so created capital into the achievement of capital leverage speculation transactions, since
large profits can be obtained quickly from them.
The current financial system is such a credit money system, where the commercial
banks, through crediting, put previously actually not existing money in circulation. This
money is created on the bank account, and the whole of the banking system can issue more
money than the amount of issue bank money it detains, in the form of deposits. The banking
system is able to issue many times the amount of the money in circulation. At present, the
compulsory banking reserve rate is 2% in Hungary, which means that the Hungarian banking
system can produce even 50 times the tied up deposit stock, the issue bank cash as money in
account. The problem with this practice is that the banking system creates, through the
production of money, a debt, the amount of which necessarily increases, due to the interests
settled onto them later.
The debt money can only repaid from the money in circulation. Nevertheless, this,
increased with compound interests, is a mathematical nonsense, since it is impossible to repay
more from the less. The consequence of this is that a part of the credits must always become
unrefundable. There will always be such entrepreneurs, economic actors, who, no matter how
valorous activity they perform and how they manage their businesses, will have to go
bankrupt nevertheless, if there is such an economic actor, who is stronger and faster than
them, and withdraws from them the scarcely available money in circulation.
In such cases, the crediting bank takes away the guarantee of the credit supplied from
money produced of air, and, by this, the flow of material goods towards the money owners
starts. In this crediting process, the coverage value is supplied not by the commercial bank
that issues the money, but by another economic actor. For instance, if somebody buys a flat
from bank loan, not the bank, but, in this case, the seller supplies the value. The banking
system only gives a signal, which, through the monopoly of money supply and production,
can only be made by it. In fact, this is nothing else, but money forgery, the privilege of which
is only detained by the banking system.
In the current money rule economy, the major part of the investments is achieved from
credit, and, since also the state covers the financing of the accomplishment of its public tasks
from credit, therefore everybody pays interest in a form or another, even if he has not taken up
any credit personally. Some of the economists consider the interest the price of the money,
more exactly of the capital service. The capital connects the elapsing of time to the money.
Therefore, the interest is the reward of the lender, creditor, investor, for having postponed his
consumption by tying up his capital. Some formulate this in the way that the investor receives
this reward, because he changes his secure money of today to the risky money of the future.
Even such a great mind as Albert Einstein called the compound interest “the greatest
mathematical discovery of all times”. A member of the House of Rothschild, being at the
top of the money rule world order, when asked to name the seven wonders of the world,
answered: “I cannot list them, but I definitely know that the eighth wonder of the world is the
compound interest.”
This wonder occurs when the credit is given not for only one year, but for more, so
that, in the second year, already not the original capital bears interest, but the capital,
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increased with the compound interest in the first year, continues to grow. The writer of the
present lines questions, from the beginning, whether it is allowed or not to connect the time,
in this form, into the money system. Namely, the time is not the property of anyone, so it
should be banned that anyone could trade with it. Everybody should be allowed to trade only
with his own property, that is only with what he created through his own performance, his
own value-creating work. Through the compound interest, the interest mechanism built in the
money system forces the economy to do such a growth at a highly increased rate, which is
incompatible with the natural processes, and the self-supporting metabolism of the mankind
with the natural environment.
Since the money rule system can enforce this forced growth, this will involve the
looting of the natural resources and the irreversible destruction of the natural environment.
Our planet, the Earth forms a finite system, in which none of the subsystems can develop
infinitely. Therefore, not the infinite growth of a subsystem is needed, which is called,
euphemistically, sustainable development, but sustainable resources, which would assure the
possibility of life for the mankind and for the whole of the living world.
Since the money economy and the value-creating real economy were definitively
separated from each other for more than a century, we are now facing two totally different
activities. The real economy has to satisfy the needs of the human society with real value-
bearers. The money economy, which expropriated, for itself, the production of the signs
representing the mediating agent of the real economy, is able to produce, practically
unlimitedly, such signs, different types of money: credit money, synthetic money, money
created through bets, index money. The financial devices produced by the money industry
have taken over the rule also upon the real economy.
Forty times the amount of money working in the real economy circulates in the
financial sector. The real economy produces 100% of the material goods, but its share in
money turnover is of only 2.5%. More money circulates on stock exchanges everyday than in
the whole of the real economy in one year. The money cartel mixes the virtually created
synthetic money with the money produced in the real economy and endowed with value
covering. In this way, the products, the services and the wages have become
disproportionately cheap.
Prior to the 2008 financial collapse, the trade with transactions for future bets, the
trade with Credit Default Swaps (CDSs) and with Collaterized Debt Obligations (CDOs)
reached the size of 800 trillion dollars on world scale. This unbridled production of virtual
money collapsed, and started the financial and then, the economic world crisis triggered by it,
lasting up to the present day. This unlimited power of the international money cartel is based
on the fact that the credit money can be, nearly without hindrance, converted into power,
including even the political power.
The credit money monopoly, operated through the interest mechanism, always needs a
scarcity of money. Namely, in abundance of money, the borrowers are not willing to pay
interest and compound interest. The scarcity of money can be produced in many ways, the
most efficient of which is the war. Thus, we can state that the current money system is
responsible, in our days, for the social injustices and for the crises, the pauperization and
misery, the indebtedness of the state, local governments and families, the military conflicts,
the corruptions, the high taxes, the mass unemployment, the threatening inflation, the ever
recurring economic crises, and, not lastly, for the irreversible environment pollution.
In the current money system, the basic functions of the money are in irreconcilable
contradiction with each other. The money is a tool of exchange, of turnover and payment, as
well as a value measuring, value preserving and value accumulating device. These functions
achieve functions that contradict each other. The same device cannot be used for exchange
and for value production in the same time. It is easy to realize that the money, as a tool of
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exchange, must circulate, while, as a value bearer (engaged capital), must be static. In contrast
with the other economic factors, a differentiated role is assured for money by the fact that it is
non-perishable, therefore it can be retained and accumulated. For this reason, the money
owners always get into the most advantageous situation in the whole of the economic life.
There is a need for money substitutes
These contradictions can be dissolved with the application of money substitutes. The
universal character of the traditional money must be terminated, and several of its functions
must be separated. Special devices can be created for these separated functions, while, for the
accomplishment of the non-separated functions, we keep on using the traditional money. The
transnational money cartel, which created the current money system and which is the
beneficiary of it, would not even hear of changing this money system. This transnational
money cartel does everything so that the functions of money should stay unchanged, and so
that it should continue to retain, as a global private monopoly, the prerogative of money
issuing and of the regulation of exchange rate and interest rate.
Since this money is a tool of power, the money rule economic order operated through
it is a power economy. The international money cartel, which holds the world power in hand,
made a turn in its long-term strategy, which aims at the annihilation of the results of the social
progress that emerged following the Enlightenment. The top achievement of the two
thousand year old European culture was the creation of the social justice, the social market
economy and the welfare state. This cathedral of the Judeo-Christian- and Greek-Roman-
rooted European culture was already mostly demolished or is in ruins. All this is the result of
the new strategy of the history-forming forces, the anti-Enlightenment, which strives to
reverse the changes occurred following the emerged social progress and modernization, and to
establish the new world order that can even be called monetary feudalism.
Instead of monetary feudalism, a harmonic world order!
In our days, when it seems that the most developed states and societies of the world
civilization are irresistibly forced to give up the accomplishments thought to be definitive of
the Enlightenment and of the social-economic progress occurring after it, we can witness the
emergence of a kind of neo-barbarian relations, following the money rule world order.
Those changes accelerated, which demolish the system of social market economy and social
justice, sweep away even the remains of the welfare state, and bring back the methods of the
raw and open exploitation, by putting the outputs of the value-creating work and the natural
resources into the service of selfish private interests.
In ancient times, the attackers coming from outside were called barbarians, who
attacked the Greek city states or the Roman Empire, and looted those who inhabited there. In
the money rule world order, the barbarians come from inside, from the so-called ruling elite.
They are those history-forming groups, which want to establish, by all means, the new world
order, which demolishes the social structures occurred following the Enlightenment,
transforms radically the production systems of individual societies, and, in consequence,
changes the relatively secure living conditions into totally insecure ones, by pushing the
majority of population into a depending situation.
In his article published on 30th
of July 2010, American Professor James Petras calls
this system contemporary barbarism, the appearance of which he leads back to the
establishment of the imperial state and to the decadent distortions occurred in its
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53
organizational and operational order. Firstly, he mentions the ascendancy of a financial-
speculative elite which has pillaged trillions of dollars from such members of the society who
saved, invested, carried mortgages and consumed. The list of the losers also includes the state,
from which enormous resources were siphoned. In this way, they deprived the productive
economy of its resources, regrouping them and letting them into the hands of a parasitic ruling
elite embedded in the power institutions of the state and in the money economy.
Secondly, the article is about the militaristic political elite overseeing a state of
permanent warfare since the middle of the 20th
century. As a consequence of this, endless
wars, cross border assassinations, state terror and the suspension of traditional constitutional
guarantees are continuous not only in America, but also in other Western democracies. All
these have led to the concentration of dictatorial powers, arbitrary jailing, torture and the open
denial of the personal security and human rights guaranteed in the act of habeas corpus.
Thirdly, Petras mentions the deep economic recession and stagnation. This is
characterized by the fact that the public power, the state, is spending huge sums on economic
and military empire building at the expense of the domestic economy and living standards.
Thus, the real necessities of the society are subordinated to the interests of the imperial state
striving at world power.
As a fourth distortion, he mentions the corruption at the top in all aspects of state and
business activity – from state procurement to privatization to subsidies for the super-rich. As a
consequence, law and order, as well as the state based on them have fallen into disrepute.
As the fifth symptom of the general decay, he mentions the high costs of empire
building, combined with the unscrupulous pillage by the financial oligarchy, with the socio-
economic burden that has been placed directly on the shoulders of wage and salaried workers,
pensioners and the self-employed. The money rule elite privatized the profit for itself, and
nationalized the losses produced by itself. The long-term, large-scale downward mobility,
as well as the disintegration of the middle-class representing the backbone of the healthy
society accelerated. Millions have lost their jobs and mostly the well paying jobs disappeared.
The foreclosures of real estates and homes skyrocket. The stable middle and working classes
shrink. More and more are forced to extend their hours of labor and years of work, for less
and less payment.
The sixth factor includes the conquering imperial wars waged for the world rule, as
well as sustained bombings. The secret and clandestine state terror operations generate
opposition, and thus such terrorist networks appear, which also target civilians in markets,
transport and public spaces. Such relationships resemble the world of Thomas Hobbes, in
which the war of “all against all” goes on. As the seventh factor, he points out that the
rising ethno-religious extremism linked to militarism is already equally found among
Christians, Jews, Moslems and Hindus. The international class solidarity which appeared in
the 19th
and 20th
century is on the way to disappear, and the doctrines of racial supremacy are
already penetrating the deep structures of states and societies.
As the eighth factor, he mentions the fact that the European and Asian welfare
collectivist movements, which, according to their officially declared goals, strived at social
justice, exerted pressure on the Western type capitalism. With the disintegration of the Soviet
Union and that of the Socialist world system, as well as the inner transformation of China, this
competitive pressure on the West decreased and it made it possible for it to revoke all the
concessions conceded under force to the public welfare and to the welfare state in the post
World War II period.
As a ninth and tenth factor, Petras added that the demise of communism and the
transformation of the essence of social democracy and its integration into the capitalist system
have led to a severe weakening of those movements which, according to the original meaning
of Leftism, represented the social progress, the social justice and the public welfare. The
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developing social movements have failed, up to now, to resist effectively the current large
scale assault of the capitalism on workers’ and middle class’ living standards.
As the eleventh remark, Professor Petras still added that those who do value-creating
work are exploited in an unparalleled way in the post-communist, newly capitalist societies,
like China and Vietnam. Hundreds of millions of workers are excluded from elementary
public educational and health services. The unprecedented pillage and seizure by domestic
oligarchs and foreign multinationals of thousands of lucrative strategic public enterprises in
Russia, the ex-Soviet republics, Eastern Europe, the Balkans and Baltic countries was the
greatest transfer of public to private wealth in the shortest time in all of history.
In the last half century, the power of a militarist and parasitic financial ruling class has
gradually emerged and consolidated. Since, on global size, the brakes and counterweights are
missing, although speaking all the time of “the rule of law” and of “state funded on the rule
of law”, in fact they established the system of the “fist-law” exerted through financial
devices, the system of unscrupulous selfishness. In this system, the “contemporary
barbarians” are continually reducing living standards, transferring public wealth to the private
wealth of the financial and corporate oligarchy. All this is combined with the pillaging of
public and national resources, the savaging of constitutional rights in the pursuit of imperial
wars, as well as the disintegration and diminution of the stable working and middle class.
According to the unanimous statement of several research institutes, more than at any time in
recent history, the top 1% of the population controls an increasing share of national wealth
and income in the world. This is supported by the statement published in 2000 of the UNO
Tokyo Research Institute, according to which, if we reduced the population of the earth to 10
persons and the total wealth of mankind to 100 dollars, one person would own 99 dollars and
9 persons one dollar.
All this proves that the connection of money capitalism (which is not identical with the
market economy) with progress is a false idea. This duly sustains that the capitalist world
system, which is degenerated into a global money rule, continuously pulls down the social
rights and welfare provisions, reduces wages, job security, pensions and salaries.
The second false assumption is that the market economy, starting from its inner
essence, prefers the peaceful situations. It is possible that the market economy insisted on by
the classics of the Enlightenment really requires peace, but the power economy of the current
money rule world order is not a market economy, only its parody. And such a system like this
really demands the militarism, the violence. This is proven by the fact that the United States
has been in a constant state of war since the early 1940’s, actively engaged in wars on four
continents, to the present day, with new bigger and bloodier wars on the horizon. The cause
and consequence of permanent warfare, is the growth of a monstrous military and national
security violence system, which absorbs the greater part of the national budget, using more
and more resources that could be used for public purposes.
The third myth is that the capitalism is the engine of the scientific and technical
revolution. With the getting to power of the money rule global elite, the resources serving the
value production were regrouped for military purposes and financial speculations. In our days,
innovation is already largely restricted to the “discovery” of more and more exotic financial
instruments and speculation methods. They deprive the value-producing economy of the
necessary investments, strip productive assets and wipe out productive employment. As the
empire grows, the domestic economy diminishes and, with the excessive centralization of the
executive power, the operation of the constitutional order is endangered.
The distrust and public revulsion against the groups of interest practicing the political
power increased not only in the United States, but also in Europe. The majority of the
inhabitants of countries belonging to the Western civilization are more and more confronted
with the financial and corporate oligarchy exerting the supreme power. This majority rejects
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the continuous centralization and concentration of the power of financial structures and
corporations. As a natural consequence of this, more and more withdraw their trust from those
political leaders who act at the behest of the financial and corporate elite. This general distrust
is also manifested in the fact that, for instance, the large majority of the American society
rejects the pillage of the state treasury to bail out banks and the irresponsibly hazarding
financial speculators.
In order to be able to change the situation, first of all, it is necessary to come to terms
with the current adverse circumstances. It must be weighed which persons, movements and
organizations would be suitable to take up the fight against the ruling groups of the money
rule world order, in order to establish a more just property and distribution system, as well as
a harmonic world order, based upon solidarity.
The first precondition of this is the need to recreate the primacy of
the productive economy and to reconstruct and reinforce, in this way, the social class
performing the productive work. The money rule groups of interest not only demolished the
productive industrial branches, primarily the so-called “dirty” industry, but also hindered the
development of new industries using and inventing clean and renewing energy sources.
The second task is that the Secondly, the capitalist societies, indebted until the limit of
insolvency, should give up the extremely costly wars and military industry, as well the
empire-building policy of conquering character, and shift, instead, to the proportional bearing
of common charges, where the privileges of the financial structures come to an end. This
requires structural reforms on the banking, financial and big retail commercial sectors, which
should be completed with the promotion of all forms of local production. All this should be
done according to the ideas, proved to be lasting, of German-born philosopher and economist
Ernst Friedrich Schumacher, set forth in his work titled Small is beautiful, published in
1973.
Schumacher states that the modern economy is not sustainable. Natural resources, like
the fossil fuels, are treated like a definitively usable source of income, although they should
be regarded a capital that should be spent on production, since are not renewable, and it is
expectable that they run out. He establishes that the efforts of the public power should be
focused so that the economy should operate on the basis of the principles of sustainable
development. He rejects the assumption according to which the continuous and forced growth
would be something good, as it is also false that all that is big is also good, at the same time.
Accordingly, the third task to be done urgently is to reduce considerably the size of the
financial and retail sector. This requires the upgrading of skills of the workers and employees
with different levels of qualification, who previously worked in the productive sector, and a
turn must be done to reinforce the role of the IT sector in the productive economy. Similarly,
changes involving basic values and basic conditions are necessary concerning the
remuneration of the value-producing work. The compensation should shift from the money
wage to the social wage, i.e. the extra-wage allowances, where the public power responsible
for common welfare should distribute the money according to social needs.
A greater proportion of the socially produced value must be spent on the high-level
free public education, on universal health care system and a sustainable level of pensions. The
more just bearing of common burdens and the state distribution serving the public welfare
more efficiently should prevail against the debt-financed consumerism, which continuously
increases the rate of indebtedness. The individual consumerism is, at the same time, also the
system of unscrupulous self-interest enforcing, which grows into selfishness. This is why it
must be changed to the system of solidarity, which mutually undertakes the social
responsibility.
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The money rule can even turn into an open dictatorship
Those money rule dictates, by which the money and corporative oligarchy has, on one
hand, enforced the compensation of its speculation losses from public money, and, on the
other hand, compels the individual states to refund, by reducing their public expenses, the
thousands of billions (in dollars and euros equally) spent on bank-saving packages, can
generate such a resistance all over the world, which can lead to social revolts, financial and
economic anarchy, to a world-scale chaos. Many representatives of the history-forming
background power also think that would be a good opportunity to introduce the new world
order. Bu already such representatives of the mainstream official history do so, like British
historian Simon Schama, who wrote in the 22 May 2010 issue of Financial Times that “The
world teeters on the brink of a new age of rage”.
Schama is in the service of the Bilderberg Group, therefore his statement is even more
worth the attention. He is aware of the fact that the controllers of the money rule world order
impose the measures of austerity onto the states under their control because they consider
these measures steps that are necessary for the introduction of the new world order. They
reckon with the fact that this could lead to street demonstrations, revolts and mass social
unrest, but, if the global elite cannot keep the processes in hand, they could trigger such a
revolution, which could already endanger the successful accomplishment of its long-term
world rule strategy.
Schama’s thoughtful article refers to the fact that we are facing such a global outburst
of rage, which cannot be solved with a slight wave of the hand. According to the British
historian, the austerity measures which can already be felt in the United States are directed
unambiguously against the elitist federative administration. According to his formulation, this
requires much more from President Obama than, figuratively said, to be an excellent form-
master. He, as the fighter of the word, will have to be the same combative as the army of the
Plebeians claiming their rights, which thinks that the truth is on its side and, with its
irresponsible beating about, it can even turn over the government of the American republic.
In other words, Obama must give up his “wrongly applied politeness”, and should
become such an authoritarian, strong-handed leader, being able to give orders, who can
successfully resist the increasing tide of the constitutional rage, which is directed against the
forthcoming “austerity fascism”. We already could witness several reports, which informed
about the revolts in Greece, the fights with the police, from setting the banks on fire to killing
people. The paralyzing austerity measures, combined with the many trillion dollars or many
thousand million euros bank-saving packages for the United States and the European Union,
caused bloody events in several places.
Nevertheless, the mass-media institutions owned by the transnational money cartel did
not inform the population exactly about the causes of these austerity measures striking the
standard of living, forcing an ascetic attitude. In the European countries and in the United
States, we can expect for the following:
There will be restrictions surpassing two or three times the public-utility service
restrictions known since World War II.
The wages of public servants will be frozen or diminished, which can cause strikes,
paralyzing whole regions of countries. This will make the economic dénouement and
the restoration of the equilibrium even more difficult. In June and July 2010, we could
already witness preparations for mass demonstrations both in France and Spain.
We must expect for considerable tax increases, due to which the middle-class actually
disappears. The enormous common charges forced the many-million masses of
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employees to avoid taxation. In the United States, the number of employees of the
Internal Revenue Service, the IRS, was already increased with 16 thousand persons.
The governments are forced to decrease their social and welfare expenditures, which
makes the life of those poor strata even more difficult, which have already been struck
most by unemployment and inflation. These hopeless people, being in a
disadvantageous situation, might undertake the resistance knowing that they have got
nothing to lose.
The Value Added Tax (VAT) strikes the European citizens with an extra tax extending
between 15–25%. This masked tax can increase even more. In Greece, the VAT was
increased in June 2010, and, in the United States, President Obama is also planning to
increase this tax. The International Monetary Fund has already announced that it is
planning to levy a tax on financial transactions.
The individual governments are even considering the possibility of laying hands on the
pension funds, namely by continuously raising the age limit, so that the overwhelming
majority of those entitled to an old-age pension will already be dead before they could
enjoy their rights to a pension.
In several European countries, laws prescribe how many employees can be fired by
private employers in a certain period. There are several such countries (recently
Greece), where the number of employees that can be made redundant was increased to
double.
After World War II, in Great Britain, the state expenditures spent on public purposes
were considerably decreased, with 4%, in 1977. This led to national strikes, street riots,
revolts and unburied victims. All this warns that the expenditures spent on important public
purposes cannot be decreased without punishment. Those who study, as intimate persons and
experts, the long-term world strategy of the global elite, write about post-industrial revolution,
which, as we have already made reference to, is characterized by a power exertion of fascist
character, operated through austerity measures. In this system, the standard of living
dramatically decreases, the growth of real economy stagnates, and the people are already
preoccupied primarily by how they could assure the basic conditions of living to their
families.
If the introduced new world order will be such a fascist-like system, based upon
austerity measures, it must be taken into account that the starving masses will organize
themselves into revolting masses. This can radically change even the meaning of the word
“revolution”. Karl Marx, who, through the League of the Just, was directly connected to the
secret societies of the Illuminati and to the money rule circles backing them, called the
revolutions the engines of history, i.e. such desirable phenomena, which enhance the
accomplishment of the strategy of history-forming forces. The mass dissatisfaction, which can
cause even revolts, can easily flare up into such a rebellion, which can not only stop the
successful achievement of the money rule world elite’s world strategy, but can even lead to
the fall of the international money cartel that became corrupt, morbid and decadent.
Several objective factors can trigger and start the turn by which the angry
dissatisfaction of the masses can transform into an overwhelming mass movement against
money capitalism. A so-called double dip financial and economic recession, the possibility of
which George Soros is convinced of, can, in a short time, put an end to the current anemic
economic recovery. A long-lasting economic recession, deeper than the current one, can
render the power exercisers of the money rule world order and its political servants even more
discreditable.
Due to the never-ending austerity measures becoming more and more severe, nobody
will believe the advertising text of the current power elite, repeated to boredom, according to
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which these austerity measures and the scarcities connected to them are the preconditions of a
higher standard of living that could be reached in the future. The national wealth being taken
away, the majority of the Hungarian society is fed up with the fact that most of the population,
instead of a wealth and capital revenue necessary for their survival, can only be “spiritually
rich” and can detain, at most, a “happy future”. The Hungarians would like to get back the
part of the national wealth due to them, and want to detain also a tangible wealth besides the
spiritual wealth. And they would give over, with pleasure, the bright glamour of a happy
future for a less shining, but real happy present.
What is the obstacle in the way of the dénouement?
We could see: the international money cartel controls the world economy with
dictatorial methods. With the help of the owned financial structures, it forced the money
system and the real economy within such coordinates, which assures an unlimited revenue
withdrawal and power to it. Wealth is power. Who owns, through the private monopoly of the
money system, the productive wealth, in fact holds in hand also the political power, as an
autocrat.
The national forces, which got in governing position in Hungary, are aware of the fact
that the era of the liberalism, degenerated into money rule and backstage democracy, has
come to an end, and the mankind is in front of a crossroads. With the end of international
money cartel’s many-century world strategy, either a strongly centralized dictatorial world
order, some variant of the global union controlled from a single centre is created, or, on the
other hand, we manage to prevent the establishment of this global state and to annihilate
definitively the rule of the international financial community.
We could see that Zbigniew Brzezinsky considers an important new factor the fact
that, in our days, the majority of people is already aware of the strategy of the background
forces aiming at the establishment of a new world order. As a result of the becoming
conscious of the masses, the activity of people increases, and they claim a part for themselves
in shaping the history. Perhaps, Hungarian Prime Minister Viktor Orbán thought of this,
saying the following in his address prior to the agenda of the Parliament on 22 June 2010:
“In the last period, serious changes, similar to those in Hungary, took place in
Europe. The changes were enforced, in both places, by the fact that the ideologies of the last
century failed. In fact, the whole ideological frame which emerged in the first half of the 20th
century and became determining in the European countries, simply got out of breath by the
end of the century. The traditional trends could not give answers to the questions of the new
times, and, instead of solutions, sank in unproductive arguments.”
The Prime Minister introduced, in this way, the fact that, for Hungary, a point of
breaking-out from the existing inertia could be if, in the Hungarian society either, that social-
political middle could appear, which would be able to put aside the customary ideological
arguments and points of view, and could find the correct direction, leaning on the common
sense.
We can interpret the concept of common sense as a practical approach, free from
ideological prejudices, to the problems, and a search for pragmatic solutions. As a realpolitik
(realistic politics), practiced according to objective criteria, which assures the optimal use of
opportunities. In the previous part, we have already set forth that the need for the – if possible,
unfailing – knowledge concerning the objective acquisition of the reality is present, at the
same time, both in cognition and action, and the ideological thinking, determined by interests
is also present, irremovably, which reflects the objective knowledge in a way determined by
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the interests. For the man, all knowledge gains either positive or negative charge, and thus it is
ideological. The knowledge provided with a sign acts also as an ideology.
Appealing to the common sense can mean that we focus directly on the facts of the
reality, and, insofar, we act like the artist, whose first starting point is the world around him,
the micro- and macrocosm, the inner and outer nature, as they exist. To all this, he adds his
specific way of seeing things, and he reflects it his created work of art, in a stylized way,
emphasizing some aspects, while fading others. If these changes are successful, they can even
stiffen as rules, which, breaking away from the reality, can even have an independent life. As
a consequence, such creations can already emerge, which obey only the rules and disregard
the reality. This is that stage in politics when the reality is adjusted to the stiffened ideologies.
The ideological systems of the 20th
century, to which Viktor Orbán may have referred, mean
exactly that these ideological systems, broken away from life, do not take the objective facts
of the radically transformed reality in consideration any longer, and are obstructing the right
decision-making. Therefore, they have to be put aside.
This is why that formation could call itself a free market economy, which, for a long,
long time, degenerated into a power economy and economic dictatorship. The freedom was
transformed into the freedom of unlimited abusing of others’ freedom. In this respect, we can
only welcome the fact that the common sense, as a decision-making method, appeared in the
System of National Cooperation. In other words, we should not approach the problems of
the reality that need to be solved through the perspective of the ideologies degenerated into
delusions. This realpolitik-type approach makes it possible to recognize and solve the
problems more quickly, and, through the analysis of the possibilities, necessities and
probabilities, to have a right vision of the future.
In our days, the national interests can only be defended within the coordinates drawn
by the money rule world order. The scopes of action of the desirable and of the possible
differ essentially from each other. Today, the state, which undertakes the defense of the
common necessities, interests and values of the larger family, the nation, is unavoidably
confronted with the interests of those who live on the territory of the state, but do not belong
to the nation. In concordance with Hungarian economist István Varga, we also think that,
within the Hungarian state, there are very many such immigrant legal persons, which are not
parts of the Hungarian nation at all, and they even behave accordingly. This kind of unnatural
economic immigration – which can be called also a violent penetration – can even be regarded
as a form of modern colonization. Such a foreign import, which did not work, and, thus, we
have to consider it a hindrance in the way of the development of the Hungarian nation.
The problem here is not that the Hungarian society, the Hungarian state and the
Hungarian economy have become open, but the fact that, at present, this openness can be
misused unlimitedly. The invasion of the legal persons that became the bearers of the
financial, economic and social irresponsibility enhances the confrontation of the state and the
nation, as well as the pushing into dependence of both of them. In economic terms, the nation
is a more restricted term than the state, but, due to the 1920 Peace Treaty of Trianon, as a
specifically Hungarian feature, the nation is still larger than the state, because millions of
people, who form an organic part of the Hungarian nation, live outside the borders of the
Hungarian state. This is the consequence of the fact that, among the peoples living in the
Carpathian Basin, the Hungarian nation was the only to which the history-forming forces
hiding in the background denied the right to form a state within ethnic borders.
Among the history-forming forces, the international money cartel detains the decisive
power. It is worth thinking it over what interest this money cartel had and still has to deny the
right to ethnical borders only from the Hungarian nation. There is not even one such a
principle of the international law, which could support this, without the existence of such
interests, which cannot be spoken out freely even in our days.
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If we take into account the presence in Hungary of such legal persons, which detain
mostly foreign company centres, we can see that, from financial, economic and ownership
point of view, the overwhelming majority of the country is ruled by foreigners. After 1989,
the operating part of the national wealth, and the considerable part of the non-operating part
of it were melted into the global share property of the international financial community (the
money world, the international money and corporation oligarchy, the transnational money
cartel, the universal and regional financial structures). We have listed these denominations
between brackets because they refer to the same closed and exclusive group of interest, which
now owns, informally, the main power in Hungary, and with which the current national
government has to struggle day by day.
One of the outspoken representatives of this financial main power, László Lengyel
writes, for instance, that: “The decay of Hungarian Prime Minister Ferenc Gyurcsány started
when it became clear for the international and domestic chief actors that it was more risky
with him than without him. Viktor Orbán showed that his person meant a risk. This political
and economic risk is billed to Hungary: we have already paid for it by the depreciation of the
Hungarian forint.”
This spokesman of the international main power, the virtuoso of the prejudiced
demagogy, goes on telling that even the “international and domestic actors” were thinking
about the opportunity that: “Isn’t it possible to assign the government to another, less risky
and conflict-generating personality? To somebody who has learned something from the last
years. Who listens to others. Who cannot be accused of non-authenticity and
irresponsibility.”
Why László Lengyel, who is always trying to defend the democracy from the
democratically elected government, which undertakes the interests of the nation, does not
denominate these domestic and international chief characters who were already thinking about
the necessity of changing, for instance, the current prime minister. Because, if this master of
the word magic revealed this, it would come to light that Hungary is controlled not only by a
democratically elected government, but, above it, there is also an invisible government,
without any democratic responsibility, the domestic and international chief characters, who
could even change the democratically elected government and its leader who proved to be
specialist and brave.
The main power in Hungary could get in the hands of the international money cartel
and its domestic comprador servants because the political groups acting in the name of the
Hungarian nation after 1989 did not defend the economic wealth of the Hungarian nation.
This basis of the national self-determination, without which no freedom – neither individual,
nor community – exists, is still not defended by anyone and anything in our days. “There is no
fence and barrier for the defense of national wealth” – stated the already mentioned
Hungarian economist István Varga in his manuscript titled National defense with financial
solidarity, completed in August 2010.
In the respect of the defense of national wealth, the Hungarian Constitution being in
effect until 2012 failed completely. It did not assure any kind of defense for the public
property. The comprador politicians and the technocrat financiers let the foreign legal entities
enter the country, and, within the process of privatization, they gave over to them nearly all
those properties, which were created, by many Hungarian generations, through, practically,
sweating their blood. The majority of this public property was not only wasted away, but also
destroyed by them. These comprador politicians and financial technocrats did not want to
know that the financial and economic penetration is a form of colonization in our days.
As for the disposition over money, it completely got into the competence of legal
persons outside the nation. The so-called Hungarian National Bank, legally, is still 100% in
the property of the Hungarian State. Formally, it was not privatized. Nevertheless, this could
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not stop the fact that the HNB passed totally into the exclusive sphere of disposition of the
international money cartel, since it was, de facto, made totally independent from its de jure
owner, the Hungarian State, and from its main institutions, the National Assembly and the
Government.
In the money rule world order, the highest power is the disposition over the money
system. It got over the state, and overcame even the armed power. We have already referred
to the fact that the money is the mediating agent of the economic life, but, in itself, is
completely valueless. The normal way is when the actor of the economic life gets money
through work or through property sale. The international money cartel, nevertheless,
gradually transformed the issue bank money into credit money and then into synthetic
money. It developed the mass production of money, because it realized that money can be
produced in a great amount also through financial transactions accounted as bets, and through
accounting tricks, which money would be meant to be a mediating agent within the productive
economy. Nevertheless, the amount of the money produced through betting increased so
quickly that it proved to be a jinn released from a bottle, over which even the money cartel
has lost its rule.
All this appeared as a world economic crisis, a newer Great Depression. The great
investment funds produced, through betting, the synthetic money for the benefit and on the
debit of each other. Wherever there were losses, they forced the governments, appealing to
“the crisis”, to take over the substitution of the losses from public money. By this, they could
reach that the virtual money, produced with a virtual cover, through betting, could become a
covered, real money. Such a money, which, though was produced from air by the money
oligarchy, became the debt of the whole of the society, for which the states pay the debt
service burdens, primarily the interests, with the money – covered with work and taxes –
withdrawn from the taxpayers. All this could happen because the money world is one of the
most marked and most efficient collaboration, solidarity against the outsiders.
The international financial community really became a mafia-like, closed and
exclusive group of interest. In essence, collaboration, solidarity means trust. Through this
collaboration and solidarity, within ourselves, we behave in a different way, to a certain
extent, than with those who do not belong to this closed community. The unnecessary and
detrimental European Union chases right this behavior. The international money cartel created
this bureaucratic hydrocephalus, settled above the nations and siphoning their resources, in
order to eliminate, in this way, the states still endowed with a need for independent
sovereignty. No nation or state should be in solidarity with others in order to defend
themselves jointly. The more closed the international financial community is, the more open
all other actors of the world economy have to be, including the world market and all important
geopolitical regions of the earth.
The morality as the main economic factor
The transnational money cartel gradually annihilated the business ethics, as the system
that regulates the economy. It relativized the universal morality, and then it closed it out from
the financial and economic life. At the same time, it preserved for itself the advantages
originating from the solidarity and the organization. In Hungary, as in a drop in the sea, we
can witness all the consequences of the moral disintegration. The international money cartel
and its domestic representatives are chasing the real solidarity and self-organization with fire
and sword, not only in the financial and economic life, but also in other fields of the social
life. The already mentioned Hungarian economist István Varga stated that the solidarity, as a
form of mutual trust, urges to a natural behavior. Nevertheless, in the lack of it, it is again the
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turn of the money, the guarantees, the covers, the numberless contracts, the attorneys and,
finally, the court procedures. All this holds a huge amount of energy, in order to substitute for
the fallen-out trust and the lack of collaboration and solidarity. Right by over-emphasizing the
competition, the European Union destroyed the cooperative, collaborative activity, based
upon trust. The so-called competition announced by it is hypocritical, Pharisaic and all kinds
of manipulations can be found in it.
If a nation consists of the basic communities of the given people, of the families, the
nation is, actually, the larger family of the given people. Through the historical heritage and
the accumulated culture, the morality keeps the larger family, the nation together. The
artificial substitute of this cementing force would be the money. On the other hand, the money
is such an abstract device, which can be used, instead of moral coherence, also for the sake of
the disintegration, destruction of the given national community. Legal entities cannot be
called to account for responsibility for others, for solidarity, for social justice, since they are
legal abstractions, which follow a single goal: the profitable operation and the production of
as much profit as possible for the owners.
In our days, a legal person, which is unable to produce such a moral behavior and
social responsibility can come to Hungary without limits, as an economic actor. Nevertheless,
the leaders of the legal entities already determine who can be a bank founder or a bank
manager, so they form such a closed community, in which one can get only with their
approval. These are the so-called “international and domestic chief actors”, mentioned with so
much admiration by László Lengyel, who like to call themselves an international financial
community, because they are hold together by the common interest and the identical view.
A public money system is needed
In order to build up the System of National Cooperation, the current money system
must be changed, in which the circulation of the money is propelled by the interest
mechanism, which withdraws the money from circulation in the form of interest. The private
money system operates with an exaggerated secrecy, urges to an income without work,
disintegrates the community, only limited closed groups speculate with it, and the
overwhelming majority of the society is continuously getting poor. If the national forces
really want to introduce the System of National Cooperation, it is immediately necessary to
shift from the system of private money monopoly to the decentralized public money system.
The banking system, being the private property of the money cartel, is able, at present,
to produce an almost unlimited amount of new money, through crediting. For this money, the
bankers demand interest. The banks of the money cartel make a big income not from putting
out the money deposited at them as credit, and keep the interest margin, but from lending
newly produced money with a very low coverage, and obtaining, in this way, the whole of the
interest. The fact that, in our days, the commercial banks are allowed to produce money, is in
contradiction with the principles of the System of National Cooperation. They issue a
proportion of 90% of the new money put in circulation, while the central banks issue only the
remaining 10% in the form of coins and banknotes. If it is in their business interest, the banks
can increase their profit without an upper limit. A limit is only when the debtors become
insolvent and the financial collapse takes place.
The bank-saving packets and reflation subventions assure only a symptomatic
treatment, and the cause therapy would be if we nationalized not the banks, but the production
of money, i.e. we restored the state monopoly of money production, namely if this important
public matter became again part of the state sovereignty. The forces being in the service of the
nation agree in the fact that it is necessary to defend the monopoly of violence of the state,
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which is, at the same time, also the precondition of the legal security. The state monopoly of
money production is even more important, because, in our days, the monetary sovereignty
assure the capacity of action of a government. It is possible to enforce the public interest
effectively and to serve the public good optimally only by taking back the monetary
sovereignty by the state and restoring the public money system.
The profit originating from money issuing, which, at present, is siphoned by
commercial banks, should be spent on the financing of state public duties or on the
reimbursement of the state debt. The Hungarian State could get new money through crediting
its own account kept at the Hungarian National Bank, what is more, interest free. From
accounting point of view, the state could obtain money in the form of a loan given for an
unlimited period. In the public money system taking the place of the current system of private
money monopoly, it will be possible to regulate the amount of money in circulation more
efficiently. In a public money system, the commercial banks could only give credits from
their actually existing money stocks, which would assure that both the bank deposits and the
money in circulation should have a full coverage. This would increase the security and
stability of the system. Nevertheless, the money cartel refuses this, because it would decrease
its freedom of movement, and would refrain the enlargement of the method of making money
from money, which assured the biggest profit for it in the last 25 years.
The struggle against the unambiguously detrimental measures of austerity forced onto
the country from outside must be fought even until the government that undertook the defense
of national interests will be able to fight out these long-term changes. Even George Soros set
forth in June 2010, in Berlin, that the present time is the least suitable for these forced
savings. He considers important to fight down the banking crisis, but, according to him, the
exaggerated austerity restrictions can plunge the euro, as a money, in danger, as well as, in a
given case, even the European Union, as an empire to be born. Soros put this in the way that
Germany can push the whole Europe in a durable recession, if it insists on the too quick
reducing of the state debt.
According to the writer of the present lines, the Hungarian nation could get the surplus
resource with the help of which the Hungarian economy could really set off, from those
hundreds of thousand of Hungarian employees, who, at present, do not contribute to the
production of the national gross product, due to the money system forced onto them from
outside. In order to put them to work, such economic programmes are needed, which enlarge
the infrastructure and the productive economy. The state itself could issue the money
instruments necessary for the performance of these works. This kind of money issuing does
not cause inflation, since the value of the new objects, surplus goods and services produced at
the end of the programmes elaborated and financed by the public power will cover the money
instruments put into circulation. On the other hand, the tens of thousands of employees
performing work, who became taxpayers from benefit-receivers, will rocket the incomes of
the state, which can be spent on public goals. It must be acknowledged that the state can issue
money not only on bank-saving packets, but even on the financing of infrastructural and
productive economic programmes.
To the question asked at the beginning of this book, namely what kind of world order
will be born from the financial chaos, we can give the answer that this mostly depends on the
role played in it by the public power, the main representative of the public interest, the state.
For the sake of the restoration of the public money system, a strong state and a brave
government is needed. The public power representing the real necessities, interests and values
of the nation must continuously renew the social contract with the groups of the population
frequently representing different interests. We are convinced that, with a property system
linked to natural persons and their performance, it is possible to create such free citizens,
having equal power, who can resist the selfishness of the more powerful. The universal moral
Dr Janos Drabik
64
requires the enforcement of self-interests to an equal measure. This can lead to a really new,
harmonic world order of social justice and of the mankind living in peace, in a creative
relationship with itself and with the nature. The 21st century can, in this way, give a harmonic
answer to the destructive dissonance of the 20th
century, which could be approved also by
nature.
The “money barons” are playing poker
The background of the world financial crisis
Why do the “money barons” keep blowing the speculation bubbles?
The financial magnates have not finished yet their hazarding with money bubbles in
the global casino. The poker players of money-making are ravaging almost as fanatics, and go
on sponging the mankind with these speculation money bubbles. Is it possible that they are
the slaves of a compulsive action, in the same way as the scorpion in the well-known moral
story? Namely, the scorpion bit the frog, on the back of which it crossed the river, from an
irresistible inner impulse. It simply could not do in another way. Being a scorpion, its vital
function is to plunge its sting filled with lethal venom into the other. He had to bite, even if it
knew well that both of them would get drowned because of it. It seems that also the
passionate addicts of the money power cannot put a curb on their insatiable money-hunger.
They must make money from everything, with all possible tools, sweeping aside all moral and
legal norms. Their life principle is: “I am growing rich, therefore I am.” This is their fate,
this is why they are in the world, and they have to do this even if this will be their destiny. But
the sad thing is that, as global scorpions, they can drag the whole mankind down with them
into peridition.
There is also another way of interpretation. Even a well thought-over world strategy
can hide behind the passionate money-grubbing and the deliberate driving the money system
to bankruptcy. This can be the long-planned beginning of a new era of the history-forming
forces, the money rule global elite, the first stage of the introduction of the new world order
promoted by it. We have to analyze thoroughly the causes, techniques and processes that lead
to the collapse of the financial world system, because, if the mankind manages to find the
right diagnosis, it can enhance even the finding of that effective therapy, which could
definitively deliver the world from the plague epidemic of usury civilization, the culture of
death, od destruction.
Can we soon expect for a world-scale collapse?
Dr. Marc Faber, the manager of a so-called hedge fund operating in London, at a
conference held in Tokyo on 22 February 2010, told the participating managers of 700
pension and property management funds that, according to his analysis, we must count with
the collapse of the money system and world economy. (In the Japanese capital, the group
called CLSA Asia-Pacific Markets held its conference. The acronym CLSA stands for the
independent property management and financial service group Credit Lyonnais Securities
Asia, which serves primarily the world’s biggest investment institutions. The centre of the
CLSA, founded in 1986, is in Hong Kong, but its regional centres operate also in 19 more
important regions.)
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65
This brokering agency, specialized on research and the service to the maximum of its
clients, holds yearly conferences for the world’s biggest investors. Its uniquely thorough
analyses are in the attention of the whole financial world. So, they were not unimportant
persons, whom Dr. Faber advised to withdraw their investments from the share markets,
because, according to his opinion, a world-scale collapse was expected. Faber suggested the
actors on the market to rearrange the portfolios and to place at least half of the investments
into the instruments of the rising markets. Mark Faber criticized severely the loose monetary
policy of the Federal Reserve System, because the low interests enhance the appearance of
newer speculation bubbles.
Faber considers the world-scale financial collapse possible, that is why he made
proposals for the preparation for it. This London financier fears the appearance of a war
situation, in which such strategies can be applied like the poisoning of the waters or the
paralyzing of the mobile phone system. If the investors want to prepare for this “dirty war”,
they should buy the assets, the touchable physical instruments of the real economy, and,
within it, primarily the agricultural production units, farms and products. He advised the
world’s largest investors to think over their global instrument allocations, and invest at least
half of their investment funds into the rising markets.
In addition, Faber also advised the participants to go on preferring, on the gold and
silver market, the so-called “long positions”, while, in the case of American state bonds, the
“short” transactions. He also mentioned that, in the next years, the budget problems would
multiply. As for world politics, Faber expects the increasing of the military opposition
between China and the United States, first of all because of the more and more limited oil
resources. At present, the United States is in a more favourable position, because it can get
energy resources both from the Atlantic and the Pacific, and this is completed by the reserves
in Alaska and Mexico.
The 700-member audience was quite eager to follow Faber’s words, because it was
him, who, in 1987, in the week before the market crash, signaled the forthcoming collapse,
and he even took quick measures, accordingly. In this respect, he is similar to Nouriel
Roubini, who deserved the nickname of “Dr. Doom”. Before analyzing in detail why and how
the world financial elite, called lately more and more frequently “Money Bubble Barons”,
continue their activity, we relate briefly about another conference of the financial world elite,
too.
This conference took place in the Claridge Hotel of London, in October 2009. The
most influential bankers in the world hold work conferences twice a year, where they
exchange views in the most important business issues, and try to elaborate a common
strategy. The leaders of the British bankers kept persuading their American colleagues to cut
down their extremely high allowances, because the governments of the leading industrial
countries spent astronomical sums of money to save of the world’s banking system. The
governments charged these sums onto the taxpayers of the given countries. This generated
aversion and even revolt among the population. According to the British bank leaders, the
financial sector should undertake more responsibility because of the financial crisis, and, as a
visible sign of this, it should diminish its astronomical allowances. Extra-salary bonuses or
rewards are due only if a financial institution is profitable, if the given banker or bank clerk
had an exceptionally good performance and deserved to have a share from the profit.
Nevertheless, the American highest-level bankers strongly opposed the proposals of
their British colleagues. First of all, the leaders of JP Morgan, Morgan Stanley and Goldman
Sachs had a reluctant attitude. They argued that such a measure would be stinking of
socialism, and, as such, would encounter the most severe opposition. The Americans do not
manage their business affairs in this way. Those who, on the other hand, defended this
standpoint, thought that, if the financial sector collaborates with the governments and agrees
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that the income of the actors of the financial sector should decrease proportionally, that would
serve, in fact, the interests of the whole financial industry, because it would decrease the
overall costs in an extremely sensitive political atmosphere. The huge bonuses continuously
raise the costs, and they have to be decreased not only because of the public opinion, but also
for the sake of the whole financial sector. Until the breakout of the 2008 world financial
crisis, the investing banks, generally, paid more than half of their income yearly, primarily to
their managers. At the joint pressure of their shareholders and the public opinion,
nevertheless, they lowered the payments to 30-40% of the yearly income. And the payments
are performed in shares nowadays, and only in a lesser part in cash. This was urged on by
directives adopted by the G20, as well as the decisions of the Financial Stability Board.
(The Financial Stability Forum, the FSF, was established by a group consisting of the
financial authorities, ministers of finance and central bankers of the leading industrial
countries, as well as the leaders of the international financial structures in 1999, for the sake
of strengthening the international financial stability. This body, consisting primarily of the
G7, later G8 countries, enhanced the cooperation in the international control of financial
institutions and transactions. The Financial Stability Forum was controlled by a secretariat,
which operated in the centre of the Basel-based Bank of International Settlements. On 15th
November 2008, the summit of the G20 decided to accept the accession of the countries with
rising economy, among them also China. The 2009 summit of the G20 held in London created
the successor organization of the FSF, the Financial Stability Board. The members of the FSB
also include those participants of the G20, which previously were not members of the FSF.)
Who are the “money bubble barons”?
In the 19th
century, when the United States became one of the leading industrial states
in the world, the giant properties were still connected to some legendary persons or families.
The steel industry to Andrew Carnegie, America’s first big oil enterprise, the Standard oil to
the dynasty-founder John D. Rockefeller, or the Morgan financial and steel industry empire to
J. P. Morgan. Who reads their biographies, can get acquainted with their merciless business
methods and with the fact that, a greedy acquisitiveness, surpassing even the mediaeval
robber barons was hiding behind their colossal growing rich. At the end of the 20th
century
and the beginning of the current century, the place of the industrial empire builders, who can
be called robber barons, was taken by white collar “barons” of a different kind.
The identification of the contemporary money oligarchs, as well as the assessment of
their influence and power is more difficult. A considerable part of their wealth consists of
non-transparent financial investments, artificially made dim, controlled by legal persons,
corporative and financial structures operating in the Wall Street and other financial centres.
The mass production of money and the management of the created fabulous properties usually
consists of over-complicated, intricate processes, artificially made sophisticated, which are
carefully hidden in the faceless financial relations of the legal person jungles. In the latest 25
years, but especially in the last few years, giant properties were created from trading with
money instruments having virtual coverage. The mass production of the uncovered
speculation money was done with this. The super-rich money oligarchs do not take part
directly in the business activity any longer. They frequently live far away from the sites of
business life, they carefully avoid the financial control and call to account, and hide away
from the public and public opinion.
The mediaeval robber barons and then the big industrial barons of the 19th
century still
had to undertake the responsibility for their economic activity, for the committed frauds and
crimes. The money bubble making financial oligarchs cannot be forced to do this any longer.
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67
After the collapse of the international money system, it is still difficult to identify those multi-
billionaire groups of interest, which made astrological profits, for instance, from the crash of
the second mortgage crediting. The causers of the financial collapse could avoid being called
to account, up to the present day, although it was them who bought up the property assets
having real value of the real economy, from the many trillion dollar profit of the CDS’s
(credit default swaps), i.e. the credit risk barter transactions. The world public opinion would
like to know who these money bubble barons are, and concretely which groups of interest are
the beneficiaries of the financial world crisis.
Upon civil initiatives, such research groups were already created, which try to reveal
who got the astrological income of the speculation trades and on what purposes they were
spent. They try to find out what the money bubble barons invested their huge income into,
which political trend or which politicians they sponsor. If they do charity acts, which
organizations get subventions from them?
But who can be considered a money bubble baron? The Forbes magazine publishes
the list of the 400 richest Americans every year. This list means a good starting point. A
money bubble baron is a person whose wealth amounts to at least two billion dollars or more.
Namely, even among the richest persons, the money bubble barons are included in the group
of the super rich. Another criterion of them is that they performed a considerable property
growth from the blowing and bursting of the most recent money bubble between 2000 and
2009. If, in this period, somebody, for instance, made a profit of one billion dollars or more,
he can be considered a money bubble baron. Another criterion is the fact that these super-rich
persons were active primarily in the financial sector and the assurance and real estate branch,
since these business branches brought the most income for those who could be their
controllers and beneficiaries. The list of the money bubble barons is not the list of the richest
persons. The super-rich persons can still be connected to the houses of Rothschild and
Rockefeller, as well as to the undivided family wealth of these dynasties. Those who
personally detain big properties also belong here, like, for instance, Bill Gates, Warren Buffet,
Carl Slim or the Walton family. Therefore, among the money bubble barons, there are several
corporation presidents, general managers and managing directors (like Lloyd Blankfein), and
such front persons of the political and financial power (like, for instance, Alan Greenspan),
who actively collaborated in the spectacular enriching of the money bubble barons.
The civil organizations undertaking the research identified, up to the present date, a
number of sixty-seven money bubble barons, according to the criteria presented above. The
research work goes on, because the public opinion wants to know who they are, how they got
their huge money wealth, and where they invested their astrological profits. How an on what
do they spend their money, who are their spouses, friends and closest business partners?
Which enterprises did they work for, which enterprises did they found or which do they own?
In the managing boards of which enterprises they detain memberships? Who are those who
helped (are helping) them in maintaining their wealth and in finding newer investments? If
they do charity acts, to which organizations they supply their subventions? Which schools did
they attend? And so on.
How does the money industry blow the trillion-dollar money bubbles?
It is also an important question: why does the money sector under the control of super-
rich speculators produce these money bubbles? The simplest answer to this is that this is the
easiest way to obtain incomes of astrological size. One of the most recent examples of this is
the fact that, in January 2010, Lloyd Blankfein, the president of Goldman Sachs,
communicated to the managers and employees of the Goldman Sachs that they can expect for
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record-size rewards and bonuses at the end of the year. The Goldman Sachs Bank separated,
for this purpose, 16.2 billion dollars, which means that each and every employee could expect
for 498,246 dollars at average, which, at large, corresponds to those sums, which they
received in the years of growth of the money bubble, prior to its bursting-out. There were,
nevertheless, some rumours according to which Lloyd Blankfein, nicknamed “dr. Ballsachs”,
would probably cease to the political pressure and would radically decrease the measure of
the rewards and bonuses to be paid. This would have been understandable, since nearly fifteen
million Americans were queuing for unemployment benefit in the first months of 2010, and
even President Obama urged the introduction of the so-called “bailout tax” (bank-saving
packet tax) after the sums serving the saving of banks.
Nevertheless, Blankfein tried to justify the yearly bonus orgy with the fact that the
employees of the Goldman Sachs deserved it with their outstanding performance, which
should be understood so that the criticisms do not have to be taken into account, the bank
obtained a huge profit and, therefore, it gives its employees a princely reward. The six biggest
banks of the United States separated, for the year 2009, 140 billion dollars for the rewarding
of their managers and employees. This sum is only 24 billion dollars lesser than that these
bankers paid for themselves in the year preceding the financial collapse, in 2007. Blankfein
felt that he had to make a symbolic gesture, so he took up only a “humiliating low” sum, only
9 million dollars. This penitential gesture, nevertheless, gains a totally different meaning, if
we take into account that each and every dollar was taken away from the taxpayers and given
over – with the help of the government – to the bankers that control the money system.
Finally, the Americans sunk in apathy acknowledged the newer big money distribution. The
rich always get the big moneys, and a few millions here or there, in fact, do not change the
essence. They could get out of this paralyzing apathy only if they knew more exactly the
methods by which the financial giants of the Wall Street manufacture, already with industrial
methods, the confection dollar billions for themselves.
Goldman Sachs – the super speculator of the world
Goldman Sachs, present everywhere, is the most powerful investment bank in the
world. Matt Taibbi, in his series of articles published between 9-23 July 2009 on
www.rollingstone.com, compares it right to a great vampire squid, which is “wrapped around
the face of humanity, relentlessly jamming its blood funnel into anything that smells like
money”. In this article, Taibbi lustrates this money industry global company specialized on
global speculation. Henry Paulson, the Treasury Secretary of President George W. Bush, who
was the architect of the bailout for the unscrupulously hazarding banks, was one of the main
managers of the Goldman Sachs previously. Henry Paulson is not the relative of that John
Paulson, who made 2.7 billons alone in the first nine months of 2007, overcoming all other
hedge fund managers.
Henry Paulson handed out billions of dollars to such former colleagues and friends of
him like Robert Rubin, President Clinton’s former Treasury Secretary, who formerly spent 26
years at the Goldman Sachs, before becoming chairman of Citigroup. Rubin got three hundred
billion dollars from the bailout subvention pressed out from the money of the taxpayers. The
chief of Merrill Lynch, John Thain, who also was a former Goldman Sachs banker, also
enjoyed a multi-billion-dollar handout from Paulson.
In the last days of the Bush administration, Paulson used billions from the taxpayers’
money to help Bank of America rescue Thain’s company. And Robert Steel, the former
Goldmanite head of the company called Wachovia, also scored himself and his fellow
executives 225 million dollars. In the Bush team, nevertheless, even other decision-makers
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began their careers at the Goldman Sachs. Neither the new American administration falls
behind from this point of view. Ed Liddy, chief of staff of the current Treasury Secretary,
Mark Patterson, was a former Goldman director. Paulson put him in charge of the insurance
giant American Insurance Group. The AIG was bailed-out. From the money received as a
present, the AIG immediately forked over 13 billion dollars to Goldman Sachs after Liddy
came on board.
Goldman Sachs found that back door through which the well-organized and looting
money power could surmount the organized democracy, sunk into chaotic relations. The bank
proved to be a huge, highly sophisticated engine for converting the useful, deployed wealth of
society into the least useful, most wasteful and insoluble substance on Earth — pure profit for
super-rich individuals. The money bubble barons achieve this using the same playbook over
and over again. The formula is relatively simple: Goldman Sachs positions itself in the middle
of a speculative bubble, selling investments they know are crap. Then they hoover up vast
sums from the middle and lower floors of society with the aid of a crippled and corrupt state
that allows it to rewrite the rules in exchange for the relative pennies this superbank throws at
political patronage. Finally, when it all goes bust, leaving millions of ordinary citizens broke
and starving, Goldman Sachs begins the entire process over again, riding in to rescue us all by
lending us back our own money at interest, selling themselves as men above greed, just a
bunch of really smart guys keeping the wheels greased. They have been pulling this same
stunt over and over since the 1920s — and in 2010 they were prepared to do it again, creating
what may be the biggest and most audacious bubble yet in history. They have already started
to blow the new money bubble with the privatization of the carbon dioxide quota trade and
the global starting of the speculative transactions.
At the beginning of the present book, we have already mentioned that if we want to
understand how we got into the 2008 financial crisis, we have to first understand where all the
money originating from it went. In order to understand that, we need to know that Goldman
Sachs has already produced five similar speculation bubbles. There were a lot of losers in
each of these master speculations, but that who found it out and directed it always got out of it
as a winner. In the following, we shall oversee these five large-scale financial speculations, on
the basis of Matt Taibbi’s already referred to article.
The Goldman Sachs comes on the scene
How did this financial giant produce its masterwork, the first speculation money
bubble? Goldman Sachs was not always a too-big-to-fail Wall Street bank. The small
financial institution was actually founded in 1869 by Marcus Goldman, who built it up with
his son-in-law Samuel Sachs. They started trading with so-called commercial papers, which
means they made money lending out short-term IOUs, personal judgment notes to smalltime
vendors in downtown Manhattan. Namely, the Goldman Sachs embarked upon the
speculation business from the very beginning, and reached its first climax when the
speculative mania flooded the pre-crash Wall Street in the late 1920s, as a result of the
artificially maintained abundance of money. As one of the main characters of the money rule
world order, this future determining investment financial institution of the Wall Street already
got an important role.
This is something like when a big star introduces himself on the Broadway. The great
player of the future global money casino also laid down its card, on which the lettering said:
Goldman Sachs. At that time, the new star of the art of money-making turned up with
gathering the potential investors in a so-called "investment trust." The investment found
means such a bank issuing private shares and investing the money of shareholders into
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securities, which is suitable for performing speculative transactions. This kind of financial
activity is similar to that performed by the modern “mutual funds”. In the United States,
security-issuing financial institutions are called mutual funds. The share issued by such
financial institutions is the “mutual fund share”, which is the name of the unit certificate or
share issued by the investing financial institution and not quoted on the stock exchange.
As mutual funds – this is how Goldman Sachs operated, as an investing financial
institution – the trusts collected the cash of large, medium and small investors and invested it
in the most various forms of Wall Street securities. Nevertheless, the securities and amounts
were usually kept hidden from the public. So an unsuspicious small investor could invest $10
or $100 in a trust and feel like he was a big player. This was the forerunner of what emerged
in the 1990s, when new vehicles like day trading and e-trading spread. The common feature in
the methods applied in the 1920s and 1990s was that attracted small investors made new
suckers, who, in this way could be connected into the big speculation games played by the
professional investors. When, as a first effort, the Goldman Sachs Trading Corporation was
created, the bank issued a million shares at $100 a piece, bought all those shares with its own
money and then sold 90 percent of them to the hungry public at $104.
Nevertheless, the trading corporation then relentlessly bought shares in itself, bidding
the price up further and further. Eventually it dumped part of its holdings and sponsored a
new investment trust, the Shenandoah Corporation. This trust issued millions more in shares
in that fund, which in turn sponsored yet another trust called the Blue Ridge Corporation. In
this way, each investment trust served as a front for an endless investment pyramid: Goldman
hiding behind Goldman hiding behind Goldman. Of the 7,250,000 initial shares of Blue
Ridge, 6,250,000 were actually owned by Shenandoah, which, of course, was in large part
owned by Goldman Trading.
The end result was a daisy chain of borrowed money, which made this financial
construction exquisitely vulnerable. The basic idea behind all that is the following: You take a
dollar and borrow nine against it; then you take that $10 fund and borrow $90; then you take
your $100 fund and, so long as the public is still lending, borrow and invest $900. If the last
fund in the line starts to lose value, you no longer have the money to pay back your investors.
The pyramid collapses, the daisy chain is broken and the masses of investors lose their
money.
In a chapter from his book written about the 1929 financial crash (The Great Crash,
1929), the famed economist John Kenneth Galbraith wrote that the Blue Ridge and
Shenandoah trusts were a major cause of the market's historic crash; in today's dollars, the
losses the bank suffered totaled $475 billion. It seems as if the speculators followed the
principle: "If there must be madness, something may be said for having it on a heroic scale."
The second act in the Goldman Sachs speculation play
How did Goldman Sachs blow up the second money bubble? Goldman Sachs,
specialized for money speculations performed with industrial methods, not only survived the
great stock exchange collapse of 1929 and the consequent financial crisis, but it became the
chief underwriter to the wealthiest and most powerful corporations of the United States. The
Goldman Sachs, as a loan subscriber or share underwriter undertook to take over, at the issue
of securities and shares, that part, which the security and share buying public would not take
over. In this way, it undertook guarantee for the disposal of the issue of securities. Thanks to
Sidney Weinberg, who rose to the rank of head of the firm, Goldman Sachs became the
pioneer of the initial public offering, known under the acronym of IPO. The first issue for the
large public always makes it possible for the issuing firm to be the first to establish the
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number and the price per unit of the issued papers. Therefore, the IPO makes it possible for
the investors and the other participants involved in the issuing to make a big profit, an extra-
profit. At this time, they determine, in fact upon estimation, the market value of the given
security, bond or share, which already envisages the evolution of the future market value of
the given enterprise. The issue of new securities can be extremely advantageous for the
financial institution dominating the market.
The Goldman Sachs, thus, obtained the extremely important role of the “first security
issuer”. What is less understandable is the fact that, for this role, it could even make people
believe that it was a financial institution, which had a reputation for relatively solid ethics and
a patient approach to investment. The compulsory guideline of Goldman Sachs was the
endeavour to a long-term profit, expressed as "long-term greedy." This philosophy of
Goldman Sachs, nevertheless, changed during the presidency of Bill Clinton. Then,
Goldman's co-chairman in the early nineties, Robert Rubin, followed Bill Clinton to the
White House, where he directed the National Economic Council and eventually became
Treasury Secretary. Rubin, who proved to be a banker that embodies the essence of Goldman
Sachs, was called “the smartest person” by the media, and it became almost a national cliché
that whatever Rubin thought was best for the economy. This phenomenon reached its apex in
1999, when Rubin appeared on the cover of Time with his Treasury deputy, Larry Summers,
and FED chief Alan Greenspan under the headline The Committee To Save The World.
And what did Rubin, “the smartest person ever to walk the face of the Earth” think?
What this smart genius thought, was that the whole of the American economy, and in
particular the financial markets, were over-regulated and needed to be set free from these
binding regulations. Clinton followed his advices docilely, and started to withdraw quickly
those legal acts, which President Franklin Delano Roosevelt introduced exactly to prevent a
speculation crash of the stock exchange similar to that one in 1929, and a consequent
economic fallback lasting for years.
What happened in fact was that Rubin had a complete and total failure. He failed to
regulate his old firm, Goldman Sachs, when it started a mad dash for obscene short-term
speculation profits. In the Internet Age, it was relatively easy to find out such financial tricks
by which it was possible to deceive masses of people who can be qualified almost financially
illiterate. Companies that weren't much more than good ideas with attached post office boxes
were taken public by launching initial public offering stocks via the IPO procedure, In this
way, many million stocks were to the public for mega-millions. Taibbi uses a suggestive
comparison in connection with this:
“It was as if banks like Goldman were wrapping ribbons around watermelons, tossing
them out 50-story windows and opening the phones for bids. In this game you were a winner
only if you took your money out before the melon hit the pavement.”
What the average investor didn't know at the time was that the banks managed to
change the rules of the game. Thus, the stock issuing and the following stock deals looked
better than they actually were. The banks managed to set up a two-tiered investment system
— one for the insiders who knew the real numbers, and another for the lay investor who was
invited to chase soaring stock prices the banks themselves knew were irrational and
unfounded.
Goldman Sachs later made a huge profit from the changes in the basic regulatory
environment of financial transactions and institutions. When, nevertheless, the speculation
comprised also the Internet companies, Goldman Sachs totally abandoned its previous
business practice laying emphasis on quality control. Previously, the rule was that, in order to
be allowed to issue stocks, a company had to be in business for a minimum of five years, and
it had to show profitability for three consecutive years. When the rules have changed, the
Wall Street did not apply these guidelines any longer. Many American IPO specialists have
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shown that banks like Goldman Sachs were quite aware of the fact that many of the public
offerings they were making would never make a dime. Of course, Goldman Sachs has denied
that it changed its underwriting standards during the Internet dumping years.
Goldman took a little-known company with weak financials called Yahoo! public in
1996, once the tech boom had already begun, Goldman quickly became the IPO king of the
Internet era. Of the 24 companies it took public in 1997, eight were losing huge amounts of
money at the time of the IPO. In 1999, at the height of the boom, Goldman arranged the
issuing of first stocks for 47 “.com” (Dotcom) companies, including stillborns like Webvan
and eToys. The person who has a closer look at all this, involuntarily compares it to what
Goldman Sachs did in the case of Blue Ridge and Shenandoah. In 2000, it underwrote 18
companies in the first four months, 14 of which were money losers at the very beginning. As a
leading underwriter of Internet stocks during the boom, Goldman guaranteed much more
profits than its competitors. In 1999, the average Goldman IPO leapt 281 percent above its
offering price, compared to the Wall Street average of 181 percent. Goldman achieved such
extraordinary results by using a practice called "laddering," which is just a fancy way of
saying they manipulated the share price of new offerings. Here's how it works:
A company called, say, Dotcom comes to Goldman Sachs and asks it to take their
company public. Goldman is entitled, in the usual way, to determine the price the stock, how
many shares should be released and how should the Dotcom take part in those "road shows"
on which they want to persuade the potential investors to buy these stocks. All this in
exchange for a substantial fee (typically six to seven percent of the amount raised). And then
the best clients are promised the right to buy big chunks of the IPO at the lowest offering
price. Thus, Dotcom’s starting share price is $15 — in exchange for a promise that they will
buy more shares later on the open market. This demand gives Goldman inside knowledge of
the IPO's future. Nevertheless, Goldman also suggests to certain of its clients to buy a
determined amount of more shares at $20 or $25, virtually guaranteeing by this that the price
is going to go up from $15 issue price to $25 and beyond. In this way, Goldman could
artificially jack up the new company's price, which, of course, brought a huge benefit for the
bank.
If, in this way, an IPO reaches the price of $500 million, the six percent fee amounts to
$30 million. Goldman Sachs was repeatedly sued by shareholders for this technique called
laddering. Experts who evaluated this process, pointed out that this kind of behavior of
Goldman contributed to a great extent to the global crash of money markets. In 2005,
Goldman was forced to pay $40 million for its laddering violations. Nevertheless, it was a
rather small penalty relative to the enormous profits it made.
Another practice Goldman engaged in during the Internet boom was "spinning," better
known as bribery. “Spinning” is a doubtful procedure in the course of which the investment
bank would offer the executives of the newly public company a large amount of shares at
extra-low prices, in order to assure them extremely high profit. In exchange for this extra
profit, these managers are expected to use the services of the investment bank also in the
future.
So, Goldman Sachs first undervalues the initial offering price, ensuring that those
"hot" opening-price shares it had handed out to insiders would be more likely to rise quickly,
supplying bigger first-day rewards for the chosen few. According to a report by the U. S.
House Financial Services Committee in 2002, Goldman Sachs gave special stock offerings to
executives in 21 companies that it took public, including Yahoo! co-founder Jerry Yang, the
bankrupt Enron's Ken Lay and others. Eliot Spitzer, who at that time was Attorney General of
the United States, said that using these hot IPO shares for bribery was not a harmless
corporate influencing tool at all. It was an integral part of a fraudulent scheme to win new
investment-banking business.
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Such practices conspired to turn the Internet bubble into one of the greatest financial
disasters in world history. From one day to another, some $55 trillion of wealth was wiped out
on the NASDAQ (National Association of Securities Dealers Automated Quotations) alone.
But the real problem wasn't the money that was lost by shareholders, it was the money gained
by investment bankers, who received huge bonuses for fraudulently manipulating the normal
course of market processes. These speculation bubbles always cause deflation. The Internet
years demonstrated to Wall Street bankers that in the new age, when the money capital could
withdraw itself from all regulation, the unscrupulousness of financial structures is not
hindered by anything, thus it became extremely easy to create giant money bubbles with
speculation. In this case, the reward moneys and bonuses due to bankers grow depending on
the extent to which they make – sometimes quite risky – manipulations.
As for Goldman, between 1999 and 2002, the firm paid out $28.5 billion in
compensation and benefits — an average of roughly $350,000 a year per employee. This
proves that, as the key legacy of the Dotcom era, the controllers of the financial system got
used to the fact that the more speculation bubbles they make possible, the bigger their salaries
and bonuses are. Goldman's old directive of "long-term profit" vanished into thin air. Its place
was taken by the principle that such financial manipulations should be done, where the
astronomical profit could be pocketed as quickly as possible. The state did not offer any
protection against this global financial gambling. For laddering and spinning 50 Internet IPOs,
the Securities and Exchange Commission, the SEC fined – with a big delay – Goldman Sachs
only $110 million. Such sanctions do not have a deterring effect. With such a ridiculous sum,
the investing company could not be forced to change, to the slightest extent, its business
strategy followed until then.
The Goldman Sachs played the main role also in the real estate
speculation
The third act of the money drama written and acted by Goldman Sachs was the
virtuosic blowing up of the real estate speculation, especially of the bubble of the second
mortgage. The trick of Goldman Sachs, the world star of the speculation drama was a decline
in underwriting standards, namely the guarantee requirements became extremely slight. In the
case of real estate speculation, the standards were not in IPOs but in mortgages. Prior to the
appearance of the speculation bubble, mortgage dealers insisted that home buyers be able to
produce a down payment of 10-20 percent, show a steady income and good credit rating. And,
of course, should properly prove his identity.
Nevertheless, from the year 2000, all this changed. Anybody could undertake
mortgages without any conditions. None of that would have been possible without investment
bankers like Goldman Sachs. These investors started to make packages of these uncovered
mortgages and sell them in mass to unsuspecting insurance companies and pension funds. In
this way, they created a mass market for the in fact uncovered indebtedness. That would never
have existed before, since no bank would have wanted to keep such mortgage on its books, of
which it knew from the very beginning that it could not expect to be reimbursed regularly, and
it was totally uncertain that it would get any money from them.
You could not make real money of these mortgages, unless you could sell them to
someone who doesn't know what they were. Goldman Sachs used two methods at selling.
First, they bundled hundreds of different mortgages into instruments called Collateralized
Debt Obligations. Then they persuaded the potential investors of the idea that those mortgages
were secure, would turn out to be OK, and there was no reason to worry. And the CDOs, as a
whole, represent a reliable, secure money. Thus, these junk-rated mortgages were turned into
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74
AAA-rated investments. The second method was that it was possible to bet on credit defaults.
To hedge its own bets, Goldman got companies like the super insurance company AIG
(American International Group) to provide insurance – known as Credit Default Swaps (CDS)
– on the CDOs. These swaps were essentially bets similar to racetrack bets. Goldman was
betting the investors who bought up these in fact junk mortgages made a bad deal and would
lose. And AIG was betting they would not, because these mortgages would continue to
represent a good and marketable coverage.
These speculation transactions, derivatives like CDOs, i.e. Collateralized Debt
Obligations and CDSs, i.e. Credit Default Swaps had already caused a series of serious
financial calamities. As, for instance, Procter & Gamble and Gibson Greetings both lost their
whole wealth. Orange County, California, was forced to default in 1994. A report that year
by the Government Accountability Office recommended that such financial instruments be
tightly regulated. Nevertheless, Goldman Sachs wanted exactly the contrary. And at that
point, in 1998, Robert Rubin, the financial smart-ass intervened again, who condemned the
head of the Commodity Futures Trading Commission, who circulated a letter to business
leaders and the Clinton administration. In that letter, the CFTC leader suggested that banks be
required to provide greater disclosure in derivatives trades, and maintain reserves to cushion
against possible losses.
Rubin recommended that the Congress strip the CFTC of its regulatory and controlling
authority. In 2000, on its last day in session, the Congress passed the now-notorious
Commodity Futures Modernization Act, which had been inserted into an 11,000-page
spending bill at the last minute, with almost no debate on the floor of the Senate. Banks were
now free to trade default swaps with impunity.
The AIG (American International Group) proved to be a major purveyor of default
swaps. It approached the New York State Insurance Department in 2000 and asked whether
default swaps would be regulated as insurance. At the time, the office was run by Neil Levin,
a former Goldman vice president. He decided against regulating the swaps. Now Goldman
Sachs was freed to underwrite as many housing-based securities and buy as much credit-
default protection as it wanted. Goldman went berserk with lending lust. By the peak of the
housing boom in 2006, Goldman was underwriting $76.5 billion worth of mortgage-backed
securities – a third of which were sub-prime – much of it to institutional investors like pension
funds and insurance companies.
These massive issues of real estate flooded the money economy with vast swamps of
crap. Most of these mortgages belonged to second-mortgage borrowers, and the average
equity they had in their homes was 0.71 percent. Moreover, 58 percent of the loans included
little or no documentation – no names of the borrowers, no addresses of the homes, just zip
codes. Yet both of the major ratings agencies, Moody's and Standard & Poor's, rated 93
percent of the issue as investment grade. For instance, Moody's projected that less than 10
percent of the loans would default. In reality, 18 percent of the mortgages were in
default within 18 months.
Nevertheless, Goldman Sachs kept financing these hideous, completely irresponsible
mortgage transactions with full capacity. Moreover, it was taking short positions in the same
market, in essence betting against the same crap it was selling. Even worse, Goldman was not
ashamed about this dishonest business behavior, that even bragged about it openly in public.
David Viniar, the bank's chief financial officer, boasted in 2007 that the bank took significant
markdowns on its long inventory positions, and, on the contrary, it rocketed the short-term
investments, because net short position was profitable. In other words, not the selling of
mortgages was the big business, but the real money was in betting against those same
mortgages.
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75
Selling such securities to customers that you're actually betting against at the same
time is qualified securities fraud. This is why Goldman Sachs was hit with a wave of lawsuits
after the collapse of the housing bubble. The bank was accused of withholding pertinent
information about the quality of the mortgages it issued. But once again, Goldman got off
virtually scot-free, staving off prosecution by agreeing to pay $60 million compensation.
The crash of the mortgage market led more or less directly to the collapse of Bear
Stearns, Lehman Brothers and AIG. The toxic portfolio of credit swaps of Bear Stearns was in
significant part composed of the insurance that banks like Goldman bought against their own
housing portfolios. In fact, at least $13 billion of the taxpayer money given to AIG in the
bailout ultimately went to Goldman, meaning that the AIG, as an insurance company, paid for
the damage of Goldman Sachs, caused by the devaluation of the crap securities. But these
crap securities were produced and marketed by the Goldman Sachs itself. In this way, the
bank made out a profit on the housing bubble twice: It ripped off the investors who bought
their valueless CDOs by betting against its own crappy product at the AIG. When the AIG got
the taxpayers’ money, Goldman pocketed also the insurance fee.
In 2006, Goldman Sachs paid $16.5 billion bonuses and rewards, an average of
$622,000 per employee, saying that "We work very hard here." But the best was yet to come.
While the collapse of the housing bubble sent most of the financial world fleeing for the exits,
or to jail, Goldman boldly continued its double game: almost single-handedly created yet
another bubble, which can overcome in size the previous ones, of which the world still barely
knows Goldman had anything to do with.
The petrol bubble – the fourth scene of the global money cabaret
At the beginning of 2008, the financial world system was in a paralyzed state. The
main characters of the money market caused one scandal after another in the last 25 years, and
there was hardly any such financial device, which could be qualified secure. The terms junk
bond, IPO, sub-prime mortgage were now firmly associated in the public's mind with scams.
In the last one and a half decade, the terms CDSs (Credit Default Swaps) and
CDOs (Collateralized Debt Obligations) were about to join them, all of which made it
possible to serve as coverage for such virtual financial transactions performed with multiple
capital leverage, which were primarily the hunting fields of hedge funds. In the first half of
2008, the credit markets were in a deep crisis, when the “financial laws” thought to be
incontestable truths proved to be delusions. They included also the opinion that housing prices
never go down. But they collapsed, because, within a system, no subsystem can grow to the
infinite.
The great financial gamblers looked for a new speculation bubble in the international
money system transformed into a global casino. The public was deeply disappointed of the
speculative money instruments, deliberately called “products” by money industrialists. They
turned instead towards real value-bearing goods and services, that is real products. It means
stuff you could touch: corn, coffee, cocoa, wheat and, above all, energy commodities,
especially oil and gas. Those who speculate on the evolution of the price of oil skyrocketed
the price of the so-called “oil futures”. The price of a single barrel went from around $60 in
the middle of 2007 to $147 in the summer of 2008. The speculators tried to talk in the public
opinion that there were serious problems with the world oil supply. With this speculation,
they derailed and sidetracked even the topics of the current presidential election campaign.
Republican candidate for president John McCain insisted that the moratorium on offshore
drilling should be ended. Democrat candidate for president Barack Obama argued that federal
investment in hybrid cars was the way out. But it was all a misleading manoeuvre. It is true
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that the global reserves of oil would not increase considerably, and exploitation has reached
its climax (peak oil), but the short-term flow has actually been increasing, and the crude oiul
offer was plentiful on world market.
The world oil supply rose from 85.24 million barrels a day to 85.72 million. Over the
same period, world oil demand dropped from 86.82 million barrels a day to 86.07 million. So,
on short-term, there was no shortage, since the demand for it was falling. If prices were
regulated only by economic laws, the demand and offer, the price of crude oil should have
gone down in fact.
Knowing the speculation art of Goldman Sachs, we dare to raise the hypothesis that
these virtuosos found the way again how they could transform the world market of oil into a
money-swallowing and money-producing machinery. Goldman Sachs, the star of the
speculation play, persuaded pension funds and other large institutional investors, which traded
with covered money, to invest in oil futures.
(The terms futures, futures market, futures transaction, futures contract all refer to
goods, currency of negotiable instruments bought and sold on a fixed future date. According
to the futures contracts, the parties buy or sell a determined amount of the determined goods,
currencies or financial instruments at a specified future date and price. The price is established
either by the buyer and seller, or the current rate of stock exchange, using the system of public
auction. The futures transaction compels the buyer to buy the given goods, and the seller to
sell it, if only the contract itself was not transferred to a third party, before the futures
transaction was performed. Even the sale of such a contract can take place, if the trader wants
to make profit or wants to diminish losses.)
With this, Goldman Sachs transformed oil from a physical commodity, rigidly subject
to supply and demand, into something to bet on, like a stock. Between 2003 and 2008, the
amount of speculative money in commodities grew from $13 billion to $317 billion, an
increase of 2,300 percent. By 2008, a barrel of oil was traded 27 times, on average, before it
was actually delivered and consumed.
During the New Deal, there had been a Depression-era law in place designed
specifically to prevent this sort of speculation. The was to help farmers. In 1936, however, the
Congress empowered the Commodity Futures Trading Commission, the CFTC to place limits
on speculative trades in such commodities, goods of prime importance, base and raw
materials. As a result of the CFTC's oversight, normal business relations reigned in the
commodities markets for more than 50 years.
Nevertheless, all that changed in 1991. A Goldman-owned commodities-trading
subsidiary called J. Aron & Company wrote to the CFTC and made an unusual argument.
Farmers with big stores of corn, Goldman argued, weren't the only ones who needed to hedge
their risk against future price drops, but Wall Street dealers who made big bets on oil prices
also needed to hedge their risk, because they stood to lose a lot too, depending on the
evolution of prices in the future. This is the so-called “risk management” to which Blankfein
made repeatedly reference on the hearing in front of the Angelides Committee.
It is really good if a farmer who is actually exposed to the evolution of prices in the
future can conclude such a contract by which he can sell his corn at a preliminarily negotiated
price. This will help him to store his products in great stocks more intrepidly. When nobody
buys his corn, the farmer can sell it to a mediator, who stores the corn himself and sells it
later, when the demand returned and the prices went up. This assured the possibility that there
were always appropriate buyers who buy from the producer even when the market,
temporarily, does not need corn.
The J. Aron & Company wanted to extend this solution also to its speculative
transactions concerning the future price of oil. This was a complete nonsense, since the 1936
law was specifically designed to maintain distinctions between people who were buying and
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selling real tangible stuff and people who were trading in paper alone. But the CFTC accepted
the argument of Goldman's subsidiary. It issued the bank a free pass, called the "Bona Fide
Hedging" exemption, allowing Goldman's subsidiary to call itself a physical hedger and
escape virtually all limits placed on speculators.
In the years that followed, the gradually corrupted CFTC would secretly issue 14 more
similar exemptions to other companies. By this, it made the already free speculation possible
in the respect of commodities, first of all the oil. So Goldman and other banks were free to
drive more investors into the commodities markets, and to take part in the new speculation
money bubble. This more or less directly led to the oil bubble in 2008, when the number of
speculators in the market finally overwhelmed the real physical suppliers and consumers. By
2008, at least three quarters of the activity on the commodity exchanges was already
speculative. This letter, letting speculation go free, was handed out to Goldman Sachs so
secretly, that even the chairman of the CFTC, Brooksley Born did not know about it.
Armed with this secret government exemption, Goldman had become the chief
designer, creator and manipulator of a giant commodities betting market. Its Goldman Sachs
Commodities Index – which tracks the prices of 24 major commodities but is overwhelmingly
weighted toward oil – became the place where pension funds and insurance companies and
other institutional investors could make massive long-term bets on commodity prices. The so-
called index speculators are mostly "long only" bettors, who seldom if ever take short
positions, meaning they only bet on prices to rise. This kind of behavior of those who expect
for a long-term price increase is good for the stock market, but it is terrible for commodities,
because it continually forces prices upward.
Nevertheless, if index speculators take short positions instead of long-term price
increase, in fact they push prices both up and down. But the Goldman Sachs and its team
made up of banks only pushed prices in one direction: up, by betting on the rise of price
index. Goldman itself was cheerleading with all its might for an increase in oil prices. In the
beginning of 2008, Arjun Murti, a Goldman analyst predicted a "super spike" in oil prices,
forecasting a rise to $200 a barrel. At the time Goldman was heavily investing in oil through
its commodities trading subsidiary, J. Aron & Company. But it wasn't the consumption of real
oil that was driving up prices. The real cause of the price increase was the bets on oil price, as
well as the contained derivative transactions, i.e. the huge speculation with oil papers.
By the summer of 2008, in fact, commodities speculators had bought and stockpiled
enough oil futures to fill 1.1 billion barrels of crude oil. This meant that speculators owned
more future oil on paper than there was real, physical oil stored in all of the country's
commercial storage tanks and the Strategic Petroleum Reserve combined. It was a repeat of
both the Internet craze and the housing bubble. For the sake of sky-high profits, the Wall
Street sold average people considered “suckers” shares of a fictional fantasy future of
endlessly rising prices.
This bubble also burst in the summer of 2008, causing a massive loss of wealth to
average investors. Crude oil prices plunged from $147 to $33. Once again the big losers were
ordinary people, the pensioners who invested funds in these futures. For instance, CalPERS,
the California Public Employees' Retirement System, had $1.1 billion in commodities when
the crash came. But the damage didn't just come from oil, but also from soaring food prices at
the same time. This led to catastrophes in many countries across the planet, forcing an
estimated 100 million people into hunger and sparking food riots throughout the Third World.
The subvention bubble – falsification of the financial rescue operation
of the state
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This fifth money bubble totally misinterpreted the original meaning of the relief action
performed by the state from public funds, since the super speculators used even this aiding
action for an unprecedented profiteering. After the oil bubble collapsed, they had to look after
new hunting fields. The big gamblers of the global financial now casino set its eye on the
public money left unguarded of taxpayers. This time, the Goldman Sachs speculators could
make a presentation about how a money bubble should be blown in a virtuoso way.
In September 2009, American Treasury Secretary Henry Paulson made a momentous
series of decisions. A few months before, Paulson helped bail out quasi-private lenders Fannie
Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan
Mortgage Corporation), by placing these two giant companies, subsidized also by the state,
operating in the real estate and mortgage sector, under state supervision, so-called
conservatorship. The state control of these two mortgage giants was taken over by the FHFA,
the Federal Housing Finance Agency.
(In the legal system of the United States, there is the legal institution of
conservatorship – a kind of supporting supervision, a placement under the economic tutorship
of the state. In this case, the supervision of the given legal entity is assured by the conservator.
Such a supervision can be ordered, in the interest of the owners, by the court or, in the case of
organizations, by the legislative and administrative power. In the case of Freddie Mac and
Fannie Mae, such a placing under government control of two private corporations took place,
which is not identical with nationalization. Namely because the latter is definitive, while the
placement under government supervision is only of a transitory character.)
As Treasure Secretary, Paulson let Lehman Brothers – one of Goldman's last
remaining real competitors – collapse without intervention. The New York-based Lehman
Brothers Holding was a global money market company itself. It dealt with selling and buying
securities and bonds, banking investments and market research. It was ranked among the
prime traders with state-issued treasury bonds and securities in the Unites States. It had
centres in several points of the world, so, among others, also in London and Tokyo. When the
global financial crisis broke out, Lehman Brothers, America’s fourth biggest brokerage house,
lost $60 million on its investments in a short time, and the holding collapsed.
After scarifying the main rival, Paulson green-lighted, as Treasure Secretary, a
massive, $85 billion bailout of AIG, which promptly turned around and repaid $13 billion it
owed to Goldman, as assurance fee for its loss-making transactions. Immediately after the
AIG bailout, Paulson announced his federal bailout for the financial industry, a $700 billion
plan called the Troubled Asset Relief Program, the TARP. Paulson put a 35-year-old
Goldman banker named Neel Kashkari in charge of administering the TARP programme. In
order to qualify for bailout moneys, Goldman announced that it would convert from an
investment bank to a bank holding company. This move allowed it access not only to $10
billion in TARP funds, but to a whole galaxy of less conspicuous, publicly backed funding –
most notably, lending from the so-called “discount window” of the Federal Reserve.
By the end of March 2009, the Federal Reserve System, fulfilling the role of the
central bank of the United States, but being in 100% private property, will have lent or
guaranteed at least $8.7 trillion under a series of new bailout programs. The FED could do
this, because a deliberately obscure, ambiguous law allowed it to block most congressional
audits and to avoid the supervision of its banking operations and records. Both the amounts of
the supplied loans and bank guarantees and the recipients of the moneys remain almost
entirely secret. Converting to a bank-holding company has other benefits as well: Goldman's
primary supervisor is now the New York FED, whose chairman at the time of its
announcement was Stephen Friedman, a former co-chairman of Goldman Sachs.
Friedman was technically in violation of Federal Reserve policy by remaining on the
board of Goldman even as he was supposedly regulating the bank. It is characteristic of the
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unscrupulousness of the money power that Friedman, in order to rectify the problem, applied
for a conflict of interest waiver from the government. And, indeed, he got the waiver. This
also made it possible for Friedman not only to keep his Goldman stock, but, thanks to the
waiver, he was also allowed to buy 52,000 additional shares in his old bank. When Friedman
stepped down, the man in charge of supervising Goldman was New York FED president
William Dudley – yet another former Goldmanite. Those who swear by the omnipotence of
free market, when it comes to Goldman Sachs, will find that there is not a free market at all.
The government, as the representative of public power, in fact assured a supreme privilege to
Goldman Sachs, and by this it helped it have inacceptable advantages against other actors in
the market.
Once the bailouts were in place, Goldman Sachs looked for a new speculation hunting
field. One of its first moves in the post-bailout era was to report that its pretax losses in
December 2008 amounted to $1.3 billion. At nearly the same time, the bank announced a
highly suspicious $1.8 billion profit for the first quarter of 2009. This apparently included a
large chunk of money funneled to it by taxpayers via the AIG bailout. The bank paid out to its
employees an astonishing $4.7 billion in bonuses and compensation in the first three months
of 2009, an 18 percent increase over the first quarter of 2008. It also raised $5 billion by
issuing new shares almost immediately after releasing its first quarter results. Taken together,
Goldman Sachs paid out record salaries for its executives in the middle of the global
economic crisis it helped cause, just months after receiving billions in a taxpayer bailout. The
government of President Obama initiated that the banks should repay at least partly the
billions of the TARP bailout money originating from taxpayers’ money. The Washington
government aimed at not causing further problems to the banks by insisting on the immediate
repayment of the received bailout.
So, Goldman Sachs played a key role in four historic bubble catastrophes: It helped $5
trillion in wealth disappear from the NASDAQ crash. It looted the pension funds during the
speculation with second mortgages. Drove the price of gas up to $4 a gallon and pushed 100
million people around the world into hunger. Seized tens of billions of taxpayer dollars
through a series of bailouts. Therefore, it is rightful to ask the question: after pocketing a huge
profit, what did Goldman Sachs give back to the people of the United States? We already
know the figure: fourteen million dollars.
This modest little sum is what Goldman Sachs paid in taxes in 2008. We have already
seen that the bank paid out $10 billion in compensation and benefits for its employees that
same year and made a profit of more than $2 billion. Yet, Lloyd Blankfein, who made $42.9
million in the same year, paid the Treasury less than a third of his earnings received from
Goldman. This was possible because Goldman Sachs moved out its money into the “tax
paradises” invented, for tax evasion, by the transnational money cartel. In other words, the
bank was registered in foreign countries with low tax rates. This off-shore technique made it
possible that any corporation, which is experienced in accounting juggling, could always find
a way to zero out its taxes. A U.S. GAO (Government Accountability Office) report, in fact,
found that between 1998 and 2005, roughly two-thirds of all corporations operating in the
U.S. paid no taxes at all. Lloyd Doggett, a Democrat representative from Texas remarked in
connection with this: "With the right hand out begging for bailout money," he said, "the left is
hiding it offshore."
Global warming – the newest speculation bubble
The global warming and the carbon dioxide emission quota trading connected to it
has grown, almost unobserved, a bigger and bigger speculation. And guess, who is blowing
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again the money bubble of the quota trade virtuously? This bubble baron is also Goldman
Sachs, the most successful speculator of all times. When Barack Obama looked for sponsors
to his presidential candidate campaign, the employees of Goldman Sachs gave some $981,000
to him. Obama was not ungrateful, since he seamlessly navigated the ship of the bailout
package through the political minefield of the financial crisis era. Goldman arranged even that
it placed – with a relatively slight investment – several of its alumni in key government jobs.
Mark Patterson became the new Treasury Secretary and Gary Gensler the chief of the CFTC
(Commodity Futures Trading Commission). Both of them were previously top-ranked
officials of Goldman Sachs.
The essential difference between them and Hank Paulson and Neel Kashkari, the
previous two Goldmanites in the same functions, was that they did not blow the bubbles of
credit derivatives or oil futures or mortgage-backed CDOs any longer, but that of carbon
credits – a bubble called “cap-and-trade”.
The new carbon credit market – the trading with carbon dioxide emission quota credits
– repeats in the virtual sphere all that the speculative trade with commodities represented.
With the latter, Goldman Sachs managed to produce a giant money bubble and, by it, to make
a huge extra profit. The trading with carbon dioxide emission quotas allows an even higher
extra profit, since the prices are determined by the governments of the given states. Here is
how the creation of the speculation bubble works: If the bill concerning carbon dioxide
emission quotas passes, there will be limits for coal plants, utilities, natural-gas distributors
and numerous other industries on the amount of carbon dioxide emissions. In other words: it
is determined how much greenhouse gas, i.e. material originating from burning fossil fuels
(coal, oil or natural gas) a plant can emit into the atmosphere per year. On the northern
hemisphere, in a height of already 4-5 kilometers, an almost continuous cloud of high
concentration carbon dioxide was formed.
If the companies go over their allotment, they will be able to buy "allocations" or
credits from other companies that have managed to produce fewer emissions. In financial
terms, these quotas can be considered credits. White House experts estimate that about $646
billion worth of carbon credits will be auctioned in the first seven years. Other experts,
nevertheless, speculate that the real number might be twice or even three times that amount.
The feature of this plan that has special appeal to speculators is that the "cap" on carbon will
be continually lowered by the governments, which means that carbon credits will become
more and more scarce with each passing year. Which means that this is a brand new
commodities market where the main commodity to be traded is guaranteed to rise in price
over time. The volume of this new market is estimated to one trillion dollars annually.
Goldman Sachs wants to enforce this bill at first. Then it must ensure to obtain the
profit-making slice of the market. And it must make sure the slice is a big slice. In fact,
Goldman started pushing hard for cap-and-trade long ago. Already in 2008, the firm spent
$3.5 million to lobby climate issues. In the hope of a big profit, they were not averse even to
the fact that the state regulation could strongly intervene in the activity of certain economic
actors.
Goldman Sachs owns a 10 percent stake in the Chicago Climate Exchange, where the
carbon credits will be traded. Moreover, Goldman owns a minority stake in Blue Source LLC,
a Utah-based firm that sells carbon credits of the type that will be in great demand. Al Gore,
Vice President in the Clinton administration, also started up a company which invests into the
production of energy that substitutes coal. It is interesting here that all three of Gore’s partners
were former managers of Goldman Sachs. It seems that this cap-and-trade business is in fact
just a carbon tax, the profit of which can be pocketed by private banks and investment
financial institutions. A much easier solution would be if the state simply imposed a fixed
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government levy on carbon pollution and forced unclean energy producers to pay to the
society for the mess they make.
On the contrary, the cap-and-trade allows a small group of unscrupulous and greedy
businessmen to get a newer hunting field, where make profit by speculation, as a private tax
collector, at the detriment of the public interest. This time it is again Wall Street that can set
the tax and also Wall Street can collect the tax. The lack of business ethics can be perceived
as in the case of all the other bubbles that was created by the virtuosos of Goldman Sachs, in
cooperation with other speculators, helped create, from 1929 to date. This kind of “business”
activity driven by greediness and unscrupulousness assured a massive profit and astronomical
bonuses for the speculators, while, at the same time, caused extremely big losses to the value-
producing ordinary people, the nameless taxpayers – who paid the bill.
All this reveals the huge difference between, on one hand, earning money with value-
creating work and, on the other hand, using the manipulation of the prices of industrial
products and raw materials for making speculation bets, and getting, in this way, fabulous
profit. Goldman Sachs is not alone, but it is the outstanding star of this global financial casino.
Its enormous profit does not signal America’s gross domestic product, but the passing of the
economic crisis. This parasite activity of banks is, in fact, the mirror image of the loss
suffered by the whole of the society. Almost everybody agrees with the fact that there is a
need for change. This is why it is worth looking over the course of the financial and economic
crash so that we could unambiguously know what changes are necessary in the whole of the
financial system, in the regulation of the activity of banks, first of all of financial institutions
dealing with financial investments. The social justice and the business ethics should be again
controlling principles in the world of money and economy.
Which were the applied speculation strategies?
In his article (http://www.rollingstone.com/politics/news/wall-streets-bailout-hustle-
20100217), titled Wall Street’s Bailout Hustle, published on 4 March 2010, Matt Taibbi
analyzes those seven speculation strategies, through which the controllers of the financial
system, transformed into an organized private power, made a huge profit, at the detriment of
the whole society. In the following, we shall briefly overview these seven money-making
methods, in fact taking-in or con tricks, on the basis of Matt Taibbi’s article.
Con trick nr. 1: The “Swoop and Squat”
In 2010, most people who have followed the financial crisis can already know that the
bailout of the giant assurance company AIG was actually a bailout from public money given
to the financial institutions assured by the AIG. What is less understood is that the bailout of
AIG counterparties like Goldman Sachs and Société Générale, a French bank, actually
began before the collapse of AIG. These counterparties actually accelerated the wreck of AIG.
This is something very like the old insurance scam known as "Swoop and Squat," in
which a target car is trapped between two perpetrator vehicles and wrecked. This happens as
follows: A third car, suddenly, cuts in before the car going in front of the car of the
unsuspecting driver. The first two cars collide and the unsuspecting driver crashes into the
second car, which stopped suddenly because of the accident. The driver of the second car
even “gets hurt” in this latter collision, and the bill is submitted to the insurance company.
The suddenly-turned-up vehicle (the “swoop”) and its driver usually disappear. The second
car, which stayed there (the “squat”), sues the driver who ran into it and his insurance
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company. Of course, the drivers of both the swoop and the squat cars conspired beforehand
and they share the profit.
In the case of the mass insolvency of banks, the role of the insurance company is
passed over to the state i.e. the government. All this can be proved by the fact that the
financial crisis of 2008 was very much caused by a series of legal incentives that often made
failed investments worth more than thriving ones. Taibbi, ironically, compares this situation
to that of “a town where everyone has juicy insurance policies on their neighbors' cars and
houses. In such a town, the driving will be suspiciously bad, and there will be a lot of fires.”
At the height of the housing boom, Goldman Sachs was selling billions in bundled
mortgage-backed securities. The buyers of these no-money-down, no-identification-needed
variety of home loans were mainly various institutions like pension funds and insurance
companies, who frequently thought they were buying investment-grade financial instruments.
A glaring example of the hypocrisy of Goldman Sachs is the fact that, while it was the main
seller of these toxic papers, it was also speculating, with huge amount
transactions, against those same sorts of securities. In the respect of such scrap security trades,
the main insurance company of Goldman Sachs was the AIG. We remind the reader that the
insurance was made on a quasi-product: on CDSs, i.e. credit default swaps.
Robert Rubin, former chairman of Goldman Sachs and Treasury Secretary under Bill
Clinton, played a key role in the so-called deregulation process. As a consequence, AIG
wasn't even required to actually have the capital necessary to pay off its obligations in case of
need. Goldman Sachs bought $470 billion worth insurance from AIG on these valueless
securities. Nevertheless, in the end the taxpayer had to pay the bill.
When the housing bubble was flying high in the sky, Goldman Sachs, on one hand,
made money selling the crap mortgages, and it made money, on the other hand, by buying
insurance on them and collecting on the bogus insurance from AIG when the crap mortgages
flopped. When, in the summer of 2008, AIG headed into a tailspin, it looked like the firm
wasn't going to have the money to pay off the bogus insurance. So Goldman and other banks
began demanding that AIG provide them with cash collateral. In the 15 months leading up to
the collapse of AIG, Goldman received $5.9 billion in collateral, and Société Générale
received $5.5 billion.
These collateral demands squeezing AIG from two sides were the "Swoop and Squat"
that ultimately crashed the firm. Goldman Sachs was even able to arrange that the assets of
AIG should not be equitably distributed among all its creditors. Had AIG gone bankrupt,
Goldman Sachs would have likely lost much of the $5.9 billion that it pocketed as collateral.
Any bankruptcy court that saw those collateral payments would have declined that transaction
as a fraudulent conveyance. After all, when AIG was taken over by the state in September
2008, Goldman Sachs was paid 100 cents on the dollar on an additional $12.9 billion it was
owed by AIG. In the case of a normal bankruptcy proceeding, this could not have happened. It
means that Goldman Sachs got $19 billion in pure cash due to the massive state intervention.
Out of which the net profit of Goldman was $13.4 billion in 2009.
Con trick nr. 2: The “Dollar Store”
In the usual "Dollar Store" or "Big Store" scam, a huge cast of con artists is hired to
create a whole fake environment. The unsuspecting mark is lured into this, and then gets
robbed over and over again. The warehouse is converted into a makeshift casino and the fool
walks in with money and leaves without it. In this case, a pair of investment banks were
dressed up to look like commercial banks overnight. The role of the mark, of the fool was
played by the taxpayer who walked into this trap, confused by the appearance.
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Less than a week after the AIG bailout, Goldman Sachs and another investment bank,
Morgan Stanley, applied for, and received, federal permission to become bank holding
companies, i.e. societies that control stocks of securities, wealth of shares. This change in the
legal status makes them eligible for much greater federal support. The stock prices of both
firms were on the bottom, and there was talk that either or both might go the way of Lehman
Brothers. By law, a five-day waiting period was required for such a conversion. But the two
banks got this approval overnight. The final approval was actually coming only five days after
the AIG bailout.
This master trick was necessary because it allowed bank houses that were, in reality,
high-risk gambling houses to masquerade as conservative commercial banks. As a result of
this new designation, they were given access to state subventions paid from the money of
unsuspecting taxpayers. Goldman Sachs received $10 billion under the TARP bailout. But it
was only a chump change in comparison to the amount of direct and indirect aid it qualified
for as a commercial bank.
When Goldman Sachs and Morgan Stanley got their federal bank charters, they joined
the group of such banks as Bank of America, Citigroup, J.P. Morgan Chase and the other
banking titans who could go to the FED anytime and borrow massive amounts of money at
interest rates that soon sank to zero percent. The ability to go to the FED and borrow big
amounts at no interest was what saved Goldman Sachs, Morgan Stanley and other banks from
death in the fall of 2008. The possibility of borrowing at zero percent interest, allowed banks
like Goldman to have virtually infinite ways to make money. In one of the most common
maneuvers, they simply took the money they borrowed from the government at zero percent
and lent it back to the government by buying Treasury bills that paid interest of three or four
percent. It was basically a license to print money – no different than attaching an ATM to the
side of the Federal Reserve.
Con trick nr. 3: The “Pig in the Poke”
The English term “pig in the poke” denotes the situation when somebody buys
something that, in fact, he does not know. The scam's name comes from the Middle Ages,
when some fool would be sold a bound and gagged pig that he would see being put into a bag;
he'd miss the switch, then get home and find a tied-up cat in there instead. Hence the
expression "Don't let the cat out of the bag." After the crash of the housing bubble, the
economy was suddenly flooded with securities backed by failing or near-failing home loans.
The interest of the speculators was to get clients and shareholders, but mostly the taxpayers to
buy these valueless securities, these worthless cats, but at pig prices. This scam appeared first
in September 2008. That was when the Federal Reserve System, i.e. the private banking
system fulfilling the role of the American central bank, changed some of its collateral rules.
Banks could once borrow only against sound collateral, like Treasury bills or AAA-
rated corporate bonds. After the changes, nevertheless, banks could borrow against nearly
anything – including, for instance, even the mortgage-“backed” crap securities. For this
purpose, it started even a special program, the Primary Dealer Credit Facility, or PDCF. In
this program, even the non-investment-grade securities and equities became eligible for
pledge in the PDCF as reliable coverage. Coming back to the analogy of the “pig in the poke”,
the FED now declared that it accepted even cats in the poke, instead of pigs.
In April 2009, the U.S. Congress established an agency called the Financial
Accounting Standards Board, or FASB, and by this changed the so-called "mark-to-market"
accounting rules. Until this rule was in effect, banks had to assign a real-market price to all of
their assets. If they had a balance sheet full of securities they had bought at $3 that were now
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only worth $1, they had to figure their year-end accounting using that $1 value. But, with the
establishment of the FASB, banks could avoid reporting losses, but they could even declare
such values which are likely to appear in the future as market prices. Therefore, the "profit"
numbers of banks can strongly be questioned. In this way, they can hide their losses from
their shareholders, since it became possible to mark their claims at a higher price.
Con trick nr. 4: The “Rumanian Box”
At the time of the Great Depression, Victor Lustig, the legendary con man, wrote a
book titled Ten Commandments for Con Men. In this book, he writes about a thing called the
"Rumanian Box." This was in fact a little machine into which a blank piece of paper is put on
one side, and real currency comes out the other side. The brilliant Lustig sold this “Rumanian
Box” over and over again at an extremely high price. But Lustig has been outdone by the
modern money barons of Wall Street, who managed to get themselves a real “Rumanian
Box”. What the speculator financial institutions hallmarked with Wall Street did was
something that could have never been thought of before. They took much money from the
government, but then did so little with it. Thus, they forced the state to go on printing new
cash and issue more and more money, which it finally gave over to them.
By early 2009, the banks had already replenished themselves with billions if not
trillions from the money the state presented them during the bailout. It wasn't just the $700
billion supplied in cash within TARP, as well as the cheap money provided by the FED, but
also the untold losses obscured by accounting tricks. Another new rule allowed banks to
collect interest on the cash they were required by law to keep in reserve accounts at the FED.
In fact, the state compensated the banks simply for guaranteeing their own solvency. And a
new federal operation called the Temporary Liquidity Guarantee Program (TLGP) let
insolvent and near-insolvent banks dispense with their deservedly ruined credit profiles and
borrow on a clean slate, with FDIC (Federal Deposit Insurance Corporation) backing.
Leaning on the government's good name i.e. solvency, Goldman Sachs borrowed $29
billion, J.P. Morgan Chase $38 billion, and Bank of America $44 billion. TLGP made it
possible to make use of big credit subventions. Collectively, all this state money gift was
worth trillions. The idea behind the flood of money was to enhance a national economic
recovery. It starts by refilling the banks' balance sheets with liquid moneys, and they, in turn,
start to lend money again, recharging the real economy and producing jobs for millions of
unemployed. But this did not happen. Despite all these trillions in government rescues,
despite the FED slashing interest rates down to nothing and showering the banks with
mountains of guarantees, Goldman Sachs and its friends had still not started financing the real
economy in the first months of 2009. Goldman Sachs and other banks, headed by Lloyd
Blankfein basically threatened to pick up their bailout billions and go home if the government
didn't put more cash at their disposal.
Goldman's chief domestic economist, Jan Hatzius said: "We're in a deep recession
mainly because the private sector, for a variety of reasons, has decided to save a lot more." In
essence, he said: You can lower interest rates all you want, but we (i.e. Goldman and
company) are still not lending the bailout money to the real economy, until the government
agrees to hand over even more money presents to them. It is a fact that the heads of these
banks shared most of this bailout money among themselves and their employees, in the form
of bonuses and compensation.
In March 2009, the FED sharply started a radical new program called quantitative
easing. In fact, the goal was to get more public money easier. This program effectively
operated as a real “Rumanian Box”. The government put stacks of paper in one side, and out
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came $1.2 trillion "real" dollars. What happened concretely was that the government used
some of that freshly printed money to prop itself up by purchasing Treasury bonds. This
qualified to be a desperation move, since Washington's demand for cash was so great after the
financial crash of 2008. Even the Chinese couldn't buy U.S. debt fast enough to keep the
American economy afloat. But the FED, this central bank in private property, used most of
the new cash to buy mortgage-backed securities in an effort to spur home lending and to
create, in this way, a massive market for major banks.
And the banks, among other things, used the received huge sums to buy Treasury
bonds. This meant that they essentially lent the money back to the government, at interest.
This is how the magic “Rumanian Box” of the Big Business in 2008. Wall Street stepped into
the circle just long enough to get paid.
Con trick nr. 5: “The Big Mitt”
In the card game called poker, the “Big Mitt” is the person, who plays a key role in the
conning of the non-initiated, unsuspicious player. In such a hazardous game, played as a
matter of course for the sake of looting the “mark”, the initiated gamblers all know the others’
cards. Also in 2008, in the poker game called financial crisis, everybody was indeed looking
at everyone else's cards, in many cases with state sanction. Only the bona fide players, the
taxpayers and clients were left out of the information, since the goal was to get their money.
At the same time the FED and the Treasury were making massive, earthshaking moves
like quantitative easing and TARP Troubled Asset Relief Program). The two financial
controlling organizations were also consulting regularly with private advisory boards,
including, of course, every major player on Wall Street. The Treasury Borrowing Advisory
Committee has a J.P. Morgan executive as its chairman and a Goldman executive as its vice
chairman. The board advising the FED includes bankers from Capital One and Bank of New
York Mellon. That means that, in addition to getting huge amounts of free money, the banks
were also getting clear signals about when they were getting that money, making it possible to
position themselves to make the appropriate investments.
One of the best examples of the banks gambling and winning, on government moves
was the Public-Private Investment Program, or PPIP, invented by Treasury Secretary Tim
Geithner. Within it, the government loaned money to hedge funds and other private investors
to buy up the most valueless securities on the market. They bought up mostly “toxic”
mortgage-backed securities. Such were the high-risk, high-yield mortgages that were most
responsible for triggering the financial chain reaction in the fall of 2008. Just a reminder for
the reader: Jobless dope persons could buy houses with no money down, and the big banks
wrapped those mortgages into securities and then sold them off to pension funds and
insurance companies as investment-grade deals.
The whole point of the PPIP was to relieve the speculator banks of these dangerous,
worthless assets. before they hurt any more innocent bystanders. The most shocking,
nevertheless, was what the banks did with the moneys obtained in this way. They
started buying those crap securities again, to sell back to the government at inflated prices. In
the third quarter of 2009, Goldman Sachs, Morgan Stanley, Citigroup and Bank of America
added $3.36 billion of exactly these crap securities to their balance sheets.
Beyond this, the FED, which plays the role of the American issue bank (of which we
repeat again and again: it is 100% owned by private banks), made currency swap agreements
with 14 more foreign central banks, in the interest of foreign markets using the dollar. At
them, the FED is protected, because it is the central bank that is responsible for the
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repayments, and not the financial institution, which ultimately uses the dollar. A further
advantage was that the FED got foreign currency in the value of the supplied dollars.
Con trick nr. 6: The “Wire”
When Goldman Sachs and Morgan Stanley transformed overnight from investment
banks into commercial banks, the opinion power owned by the international money cartel
communicated to the Americans that, from then on, much more severe regulations would
come into effect, and even the public supervision of banking would tighten control. Here's
the thing about our current economy. Nevertheless, the The New York Times reporting on this
kept it silent that this kind of metamorphosis simply completed the process in the course of
which the money cartel further concentrated and centralized the power and wealth in hand.
All that began in 1999, when the Washington Congress repealed the Glass-Steagall Act – the
law that was adopted during the presidency of Franklin Delano Roosevelt, after the 1929
Great Depression. The goal of this act was to prevent the merger of insurance firms and
commercial banks, operating with covered money, and the investment banking houses,
dealing with very doubtful securities.
With the abolishment of the Glass-Steagall Act, the Wall Street and the government
became one giant quasi criminal gang, where the major players share valuable information
between themselves the way drug addicts share needles during their meetings. One of the
most common practices is a thing called front-running, which is really not different from the
old "Wire" con, another famous scam. But here it is not the case of intercepting a telegraph or
telephone wire in order to bet on racetrack results ahead of the crowd. What Wall Street bank
leaders do here is making bets ahead of valuable information they obtain in the course of
everyday business.
Let us suppose that the executive working for the commodities desk of a big
investment bank is called by a major client, a pension fund, and asked to buy a billion dollars
of oil futures for them. When the executive performs the order, he can be sure that the price of
those futures is almost guaranteed to go up. If another employee in charge of asset
management somehow finds out about that and takes measures accordingly, he can make a
fortune for the bank by betting ahead of that client. The deal would be instantaneous and
undetectable, and it would offer huge profits. The client, the pension fund would lose money,
of course, since he would end up paying a higher price for the oil futures he ordered, because
the other employee had driven up the price. Goldman Sachs actually warns its clients about
the consequences of such a con.
In the disclosure section at the back of a research paper the bank issued on January
15th
2009, Goldman Sachs advises clients to buy some “toxic” high-yield bonds while
admitting that the bank itself bets against those same crap bonds. The laws and regulations
concerning securities oblige the banks to have a fair attitude towards their clients and prohibit
the analysts of the given bank from expressing opinions that are contrary to their real
conviction.
The major investment banks employ such high-speed computer programs that can
glimpse orders from investors before the deals are processed and then make trades on behalf
of the banks at speeds of fractions of a second. Banks would not admit it, but everybody
knows what this computerized trading – known as "flash trading" – really is. Flash trading is
nothing more than computerized front-running. The management of the Securities and
Exchanges Commission (SEC) voted to ban flash trading in 2009 September, but at the time
of the writing of the present book (May 2010), it has not yet issued a regulation to put a stop
to the practice.
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In 2009, a federal prosecutor admitted in open court that the Goldman Sachs trading
program could be used to unfairly manipulate markets. After this, the bank released its annual
numbers. The report included the fact that 76 percent of its revenue came from trading, both
for its clients and for its own account. This revenue is much higher than any other bank. It is
really difficult to answer the question why big institutional investors like pension funds
continually come to Wall Street to get raped. This is the riddle that needs solving. In
testimony before a government panel, where he was confronted about his firm's practice of
betting against the same sorts of investments it sells to clients, Lloyd Blankfein answered: The
buyers are professional investors who want this exposure. In other words, the clients are
professionals, so they can be cheated if they are dumb enough to let it.
Con trick nr. 7: The Reload
Not all professional swindlers are so thick-skinned to con the same victim twice. But
those few virtuosic con men, who do it, nevertheless, call this operation “reloading”. The
usual way to reload on a repeated victim – a quasi "gambling addict" – is to persuade him into
trying to get back the money he just lost. This is exactly what started to happen on the Wall
Street in 2009. The housing bubble itself was a classic confidence game of the Ponzi scheme.
The essence of the Ponzi scheme is that old investors must be continually paid off with money
from new investors to keep up what appear to be high rates of investment return. Residential
housing was never as valuable as it seemed during the bubble. The soaring home values were
a reflection of a continual upward rush of new investors in mortgage-backed securities. This
housing investment rush finally collapsed in 2008, and the bubble burst.
By the end of 2009, we could witness that the housing speculation bubble was re-
inflating. The bailout policy of the state that was originally designed to help the American
economy get out from under the bursting of the largest asset speculation bubble in history
produced exactly the opposite result. The government-fueled billions suddenly began flowing
into the most dangerous and destructive investments all over again. Wall Street was going for
the reload. This was mostly the government's own fault. By slashing interest rates to zero and
flooding the market with money, the FED was replicating the mistake that Alan Greenspan
had made not once, but twice, before the tech bubble in the early 1990s and before the
housing bubble in the early 2000s.
With interest rates kept on an extremely low rate, Alan Greenspan forced the investors
to go elsewhere to search for moneymaking opportunities, instead of traditionally safe
investments like certificates of deposit and savings accounts. The situation was the same in
2010. Wall Street was flooded with money originating from government subventions, and
interest rates that were not just low but near to zero. Investors were forced again to seek out
more "creative", i.e. yielding higher profit investment opportunities. Some of that money
could be used to back the efforts of investment-worthy entrepreneurs. But Wall Street does
not want to lend to small and medium-sized business. What they want to invest in is
marketable securities. And the definition of small and medium-sized businesses, for the most
part, is that they don't have marketable securities. These market actors operate with bank
loans. So the small businesses, which are out of the money market, fall out the sphere of
interest of Wall Street, since, due to the FED's low interest rates, they could not make money
on them. The Wall Street solved this dilemma by going back to the hazardous financial
speculations.
The essence of bubble economics is the same as that of gambling: betting on crowd
behavior. What is important is not the real value of the given economic actor, i.e. the
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economic fundamentals. Matt Taibbi sums up Goldman Sachs leader Lloyd Blankfein’s
"virtuoso performance" as follows:
“Take massive sums of money from the government, sit on it until the government
starts printing trillions of dollars in a desperate attempt to restart the economy, buy even
more toxic assets to sell back to the government at inflated prices – and then, when all else
fails, start driving us all toward the cliff again with a frank and open endorsement of bubble
economics. I mean, shit — who wouldn't deserve billions in bonuses for doing all that?”
Con artists have a word for the inability of their victims to accept that they have been
scammed. They call it the "True Believer Syndrome." We are in a state of nagging disbelief
about the real problem on Wall Street. It cannot be neglected either that there are inadequate
rules and incompetent regulators. The real problem is that it doesn't matter what regulations
are in place if the people running the economy can be considered virtuoso white collar
criminals who are never short of inventiveness if they can make even more profit through it.
Even the private money system operated with an interest mechanism assumes a certain
minimum level of ethical behavior. If those business ethics are absent, there is no regulation
that cannot be evaded. Ethical brakes would also be necessary, since it is impossible to place a
state supervisor next to each banker.
When the American government undertook to help, from public money, the gamblers
who got in trouble, through the biggest bailout in history so far, in fact offered them even an
ethic support. Instead of liquidating the insolvent institutions and prosecuting the responsible
persons for taking the American society down with them in a giant Ponzi scheme, the
government helped them in all imaginable ways. It showered them with money and state
guarantees, but, at the same time, ethically stands on the side of those who can still be proud
of the fact that they are “Too Big to Fail", i.e. they are so big and indispensable that their
bankruptcy and liquidation cannot be accepted in any circumstances.
If they are too big to be called to give account for their attitude endangering the
society, they have to be split up or let to go bankrupt. If the precondition of social
responsibility is to be cut to size, it is necessary to find the optimal size of the financial giants
with too great power. Instead of giants, they should be “giants broken in two” or dwarfs, and
they would immediately be more modest. Nevertheless, the white collar criminals of Wall
Street not only escaped from the crash and from being called to give account, but got into the
position to draw a huge profit from the bailout. This was proved by the huge benefits and
bonuses that they could pocket at once. By recapitalizing the irresponsibly hazarding bad
banks, the state bailout policy was like the swindler gambling addict goes back to the casino
to get his lost money back.
A financial nuclear bomb: “Naked-shorting”
The speculation financial techniques known to date represent, even themselves, a
serious danger not only for the normal operation of the money system, but also for the whole
of the economic life. So that certain outstanding actors of the money world could be able to
defeat such financial giants as Bear Sterns, Lehman Brothers, American International Group
and AIG, a mass-destruction financial weapon was necessary, which can even be called a
financial nuclear bomb. This dangerous weapon is the “naked short-selling”. In other words, it
means a mass optional trading at the stock exchange with virtual shares. Without it, bringing
such financial giants as Bear Sterns of Lehman Brothers to heel would not have been possible.
On March 11th, 2008, when Bear Sterns shares were worth $63 at the stock exchange,
a mysterious speculator turned up at the market-maker of the New York stock exchange and
spent $1.7 million on a series of options, gambling that Bear Stearns shares would lose more
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than half their value in nine days or less. After this, huge bundles of Bear Stearns stock were
sold at $30 and $25. on or before March 20th. In a week, the venerable investment firm had
lost virtually all of its cash and was compelled to turn to the FED for loan. The FED and the
Treasury refused to help, and forced Bear Sterns to sell itself to J.P. Morgan Chase (which
had been given $29 billion in public money earlier) at the humiliating price of $2 a share.
Whoever bought those options, speculating on the fall of Bear Sterns shares, made 159 times
his money, and pocketed roughly $270 million with this sole transaction.
The illegal insider information manipulation was obvious. The Senate Banking
Committee questioned Christopher Cox, the then-chief of the Securities and Exchange
Commission, the SEC, who promised to investigate the case. Although more than 50 Wall
Street firms were questioned, they could not identify yet the mysterious short trader. The
SEC's halfhearted oversight didn't go unnoticed by the market. Six months after Bear Sterns
was eaten by predators, virtually the same scenario repeated itself in the case of Lehman
Brothers – an even bigger investment bank.
In the money system and economy overloaded with money bubbles, both Bear Stearns
and Lehman were full of leveraged securities, which made the vulnerable to collapse. Many
of the methods that the stronger Wall Street firms used to knock their rivals over were mostly
legal: the so-called “credit markers” were pulled, rumors damaging good reputation were
spread through the media, and legitimate short-sellers were activated to pressure the price of
the chosen stocks down with a great amount of optional transactions. But they were pushed in
the abyss by the “naked short-selling”, which can be regarded a kind of counterfeiting
scheme.
By the middle of the eight-year Bush administration, the great investment banks like
Bear and Lehman no longer made their money financing real businesses, i.e. not from
fulfilling, by creating jobs, the mediating function of the value-producing physical economy.
Wall Street had to look for new revenues, since, on world scale, the real economy can only
assure a growth of 2-5% even within optimal conditions. And this is not enough for the
financial giants to get a profit that satisfies even their needs. Therefore, Wall Street itself
started to produce such virtual financial products by which it could lure the great herd of
unwitting investors, always offering them some new speculation opportunities bringing a big
profit.
This is what we have already mentioned in this book: Internet, real estate, oil futures.
With this, Wall Street has managed to obtain the wealth and income of the otherwise already
weakened American middle class. Due to this strategy, the American middle class slowly
became impoverished and thus could not feed the money-hunger of the Wall Street
speculators any longer. At this moment the emergency situation occurred, in which the
strongest actors of the money world assessed who were those remaining persons among them
who can still be stripped as they did with the American middle class. By now, quite enough
information has come to light to know how the strongest actors of Wall Street performed the
further centralization and concentration of money wealth, and how the state officials supposed
to enforce the regulating role of the state contributed to this.
The duty of the government representing the public interest would have been to
protect the economy and the society from this super speculation. But the state did not fulfil
this duty. It did not undertake to put an end to the spreading financial speculation. The
highest-ranked representatives of the money world, being built in the governing of the state,
used its power to consolidate their own financial and political power. In 2008, there were five
major investment banks in the United States: Bear Stearns, Lehman Brothers, Merrill Lynch,
Morgan Stanley and Goldman Sachs. Today only Morgan Stanley and Goldman survive as
independent firms, occupying the highest level of the restructured Wall Street hierarchy. The
whole world was shocked by the consequences of this large-scale Wall Street financial
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90
consolidation. In Europe and in other parts of the world, sweeping measures were taken to
restrain the corruption and to strengthen the control of the financial structures. In the United
States, while they were speaking about the same thing, in fact they invited the key persons
who caused the crisis into the government, and the new president even charged them with the
control of the financial sector.
At present, the derivative-driven economy is still working, and it is still characterized
by counterfeiting and the speculation with fictive financial products. Such financial
innovations like credit default swaps (CDSs) and collateralized debt obligations (CDOs) were
employed for the primary purpose of synthesizing out of thin air those revenue flows that the
American industrial enterprises moved out from the United States to Asia and Latin America
were no longer pumping into the financial sector. The basic concept in almost every case was
the same: replacing hard assets with complex financial formulas – negotiable financial
instruments – that are backed by promises to pay instead of real, tangible and value-bearing
things.
Credit-default swaps enabled banks to lend more money without having the cash to
cover potential defaults. One type of CDO let Wall Street issue mortgage-backed bonds that
were not backed any more by actual monthly mortgage payments made by real human beings.
These worthless bonds were called synthetic CDOs i.e. derivative contracts covered with
derivative contracts. In this way, the whole money economy became a fake, artificial,
fictitious money economy, dragging down even the value-producing real economy with itself.
In the first decade of this century, even Bear Stearns itself was one of the beneficiaries
of this artificially created, fake economy, and played an outstanding role in the establishment
of the illusory housing market. It was Bear Stearns that asked the SEC for a relaxation of
lending restrictions that required it to possess at least $1 for every $12 it lent out. As a result,
Bear’s debt-to-equity ratio soared to 33:1. Bear Stearns used much of that leverage to issue
great amounts of mortgage-backed securities, and by this it managed to drive its share price to
$172 in early 2007. But that summer brought a change. Two of its hedge funds that were
heavily invested in mortgage-backed deals imploded in June and July. This forced the credit-
raters at Standard & Poor’s to change the rating of Bear Stearns from stable to negative. The
company survived this somehow, but by March 2008, a network of creditors was needed to
avoid the crash.
Then, on that March 11th 2008, when that mysterious speculator was betting $1.7
million, a meeting was held at the Federal Reserve Bank of New York that was attended by
FED chief Ben Bernanke and New York FED president at that time, Timothy Geithner. This
intimate luncheon included virtually everyone who was anyone on Wall Street – except for
Bear Stearns.
The list of participants included the following: Jamie Dimon from J. P. Morgan Chase,
Lloyd Blankfein from Goldman Sachs, James Gorman from Morgan Stanley and Richard
Fuld from Lehman Brothers. The meeting was never announced publicly. In fact, it was
discovered only by accident. A reporter from the Bloomberg financial information service
filed a request under the Freedom of Information Act and came across a mention of it in
Bernanke's schedule. After this, Matt Taibbi, the fact-finding and pragmatic journalist
of Rolling Stone has contacted every major attendee, and all declined to comment on the real
goal and agenda of the meeting.
There's no evidence that Bernanke and Geithner called the confidential session to
discuss the troubles of Bear Stearns. It is possible that one of them made an impolitic
comment about Bear Stearns (the representative of which was not present), inadvertently
fueling a run on the bank, i.e. all depositors take out all of their money from the bank.
Geithner and Bernanke testified before the Senate that they only learned about the severe
liquidity problems of Bear Stearns on Thursday, March 13th
. This is a less believable
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91
affirmation, as if you were saying you spent the afternoon of September 12th
, 2001, in the
Oval Office, but didn't hear about the Twin Towers falling until September 14th
.
Taking into account the FED's nearly morbid confidentiality, we simply don't know
what exactly happened at the meeting. But it is a fact that from the moment it ended, the run
on Bear Stearns was on, and every major player on Wall Street with ties to Bear kept clear of
helping the company in trouble. Banks, brokers and hedge funds that held cash in Bear's
accounts withdrew it in mass quantities, making it harder for the firm to meet its credit
payments. The credit-default swaps started against Bear, making public bets that the firm was
going to collapse. At the same time, the wounded financial institution was bombed with so-
called "novation requests" – efforts by worried creditors to sell off the debts that Bear Stearns
owed them to other Wall Street firms, who would then be responsible for collecting the
money. By the afternoon of March 11th, two rival investment firms – Credit Suisse and
Goldman Sachs – were so swamped by novation requests for Bear's debt that they temporarily
stopped accepting them. This was a serious signal for the money markets that Bear got into a
grave crisis.
The tactics applied against Bear Stearns had been in use against smaller companies for
years. The brokers manipulating the stocks employed the counterfeiting scheme called “naked
short-selling” even against smaller companies. Nevertheless, from the moment the
confidential meeting at the FED ended on March 11th, a giant investment bank became the
target of this destructive financial practice. The assault was started by the companies that
attended this private meeting kept secret.
The roots of short-selling date back to 1973, when Wall Street went to a virtually
paperless system for trading stocks, instead of physically tangible papers. Before then, if you
wanted to sell shares you owned in a certain company, you and the buyer would verbally
agree to the deal through a broker. The buyer would take legal ownership of the shares, but
only later would the broker deliver the actual, physical shares to the buyer. A whole network
of runners was carrying paper shares from one place to another.
In order to upgrade this system, the Wall Street leaders established a kind of giant
financial septic tank called the Depository Trust Company. The DTC was privately owned by
a consortium of brokers and banks. It centralizes and maintains all records of stock
transactions. From then on, it was not necessary to carry these tangible paper shares back and
forth across Manhattan by messengers on bikes and motorbikes. These physical shares of
stock remain permanently in the safes of the DTC. When one broker sells shares to another,
the trust company "delivers" the shares simply by making a change in its records: erases the
old owner and enters the new one.
The paper-based records were completed by this new electronic system, which then
took the leading role. The introduction of electronics spurred an explosion of financial
innovation. One practice that had been little used before but now began to be employed with
great popularity was short-selling. This perfectly legal type of transaction allows investors to
bet against a stock. A normal short sale is easy to follow. A hedge-fund manager goes to a
brokerage house like Goldman Sachs and borrows 1,000 shares in a company, the share price
of which he expects to go down. On that day, these shares happen to be trading at $10. This
hedge-fund manager takes those 1,000 shares, and sells them on the open market at $10,
which leaves him with $10,000 in cash. Then he waits. A week later, he sees that the press
reports on scandalous cases that ruin the good reputation and credit of the company. Due to
the scandal, the firm's share price tumbles to $3.5. At this moment, the hedge-fund manager
goes out on the market and buys back those 1,000 shares of the sinking company for only
$3,500, and then returns the shares to the lender company, in this case to Goldman Sachs. at
which point your interest in WGI ends. By betting against or "shorting" the company, So, the
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hedge-fund manager made a profit of $6,500, by expecting correctly at the decrease of the
targeted firm’s share price.
This normal short-selling is completely legal. It can also be socially beneficial, by
selecting inefficient or corrupt companies and punishing them. It can enhance exposing such
scandalously fallen firms like Enron. Nevertheless, the new paperless system instituted by the
DTC offered an opportunity for swindlers to apply new methods of fraud in the stock market.
Under the old system, would-be short-sellers had to physically borrow actual paper shares
before they could execute a short sale. In other words, they had to actually have stock before
they could sell it. But under the new system, a short-seller only had to make a good-faith
effort to "locate" the stock he wanted to borrow. This effort is usually nothing more than a
short conversation with a broker.
The hedge-fund manager tells the broker that he wants to short, say, the IBM, and asks
whether the broker has a million shares he can borrow. The broker, without checking, says
yes, and so the business has started. The regulation did not prescribe that the broker is obliged
to check whether IBM has a million shares or not. But even more serious was the fact that
there was nothing to prevent that broker – let's say he has only a million shares of IBM total –
from making the same promise to five different hedge funds. In this way, brokers could lend
stocks they never had, and the system also allowed hedge funds to sell those stocks and
deliver a kind of IOU (“I owe you”), a promise to pay instead of the actual share to the buyer.
When a share of stock is sold but never delivered, it is called a "fail" or a "fail to deliver".
There was no law or regulation in place that prevented it. This loophole, legal gap legalized
the counterfeiting of stock. The place of real stock was taken by "fails" – phantom shares –
and the real assets were substituted by IOUs.
If you own stock that pays a dividend, you can see a sign on your dividend check that
says "PIL" – meaning "Payment in Lieu" of dividends. It means that your shares were never
actually delivered to you when you bought the stock. No dividend should be paid after such a
phantom share, but it still happens, nevertheless. This counterfeiting scheme is so profitable
for the hedge funds, banks and brokers involved that they are willing to pay "dividends" for
shares that do not exist.
In fact, even the operation of certain companies can be influenced negatively with
phantom shares. Within individual corporations, corporate transfer agents are at work, who
keep track of who owns shares incorporations. This is an important data for the purposes of
voting in corporate elections. Several times, when corporate votes came up, they were getting
more votes than there were shares. In other words, transfer agents representing a corporation
that had, say, 1 million shares outstanding would report a vote on new board members in
which 1.3 million votes were cast. This happened several times, so analysts came to the
conclusion: The fact that short-sellers do not have to deliver their shares made it possible for
two people at once to think they own a stock.
In 2005, the experts of a trade group called the Securities Transfer Association
analyzed 341 shareholder votes taken that year, and found evidence of over-voting in each
and every case, which means that more people voted than the number of shares the
corporation detained. This falsifies the elections performed at corporations. Corporate-
election fraud was a simple thing to achieve: anyone can influence any corporate election
simply by borrowing great masses of shares shortly before an important merger or board
election, exercising their voting rights, and preventing or reaching, by this, an important
corporate decision. Then the shares were returned to the lender right after the vote was over.
Hilariously, because you’re only borrowing the shares and not buying them, you can
effectively “buy” a corporate election for free. The lack of hard rules forcing short-sellers to
deliver shares, made it possible for unscrupulous traders not only to influence detrimentally a
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corporate vote, but it could also enable them to depress the price of a stock by selling large
quantities of shares they didn’t possess.
This problem was presented to the management of DTC already in 1993, but they
were not willing to react properly, saying that it was an issue of minor importance. At that
time, the amount of the assets handled annually by the DTC reached already $1.8 quadrillion
in any given year, roughly 30 times the GDP of the entire planet. Nevertheless, ten years later,
in 2003, the short-selling of “phantom” shares became so dominant that it could already be
considered a financial weapon of mass destruction. It was an early version of the “naked
short-selling” technique that would help take down Bear Stearns and Lehman Brothers later.
In his article titled “Wall Street’s Naked Swindle”
(http://www.rollingstone.com/politics/news/wall-streets-naked-swindle-20100405), Matt
Taibbi illustrates how naked short-selling works:
Imagine you travel to a small foreign southern-sea island on vacation. Instead of
exchanging your dollars into the local currency of the mini-state, the country gives you a
small printing press and makes you a deal: Print as much local money as you like, then on the
way out of the country you can settle your account. So you take your small money-printing
press, print out gigantic quantities of local money and start buying goods and services. In a
short time, the cash floods the market, and, due to inflation, the currency's value starts to
decrease. If this situation persists long enough, the value of the local currency will fall
drastically, and the loaf of bread that cost the equivalent of one dollar the day you arrived now
costs less than a cent.
With prices completely depressed with the local money printed on the small money-
press, you can buy everything of value – homes, cars, works of art – at fragments of the
original price. You then load it all into a cargo ship and head home. On the way out of the
mini-country, you have to settle your account with the currency office. But the local money
you printed is now worthless, it takes just a handful of dollars to settle your debt. Arriving
home with your cargo ship, you sell all the island goods you bought and make a huge fortune.
This is the basic outline for how to seize the assets of a publicly traded company using
counterfeit stock. What naked short-sellers do is sell large quantities of stock they don't
actually have, flooding the market with “phantom" shares. So it is possible to depress the
chosen company’s share price, since the more shares are in the market, their price is of the
less value, due to inflation. This operation is called “bear raids” in stock exchange slang. The
“bullish” market refers to the operation of the stock exchange when prices go up, while the
“bearish” market to the process when the price of the shares continually falls.
The first series of "bear raids" was executed on small companies, so that sellers sold
shares they didn't possess in huge quantities. In the meantime, negative rumors were fomented
about the company, in order to undermine the reputation of the firm. Next, they approached
the chosen victim with offers to desist the attack – if the company sells them stocks in a high
quantity at a discount. In 2005, complaints from investors about naked short-selling finally
prompted the SEC to try to curb the scam. A new rule called Regulation SHO, known as "Reg
SHO" for short, which already regulated and tightened up the short-selling. This rule was
designed, in theory, to prevent traders from selling stock and then failing to deliver it to the
buyer. The then-SEC chief Christopher Cox stressed that this practice was a market
manipulation that is clearly violative of the federal securities laws.
But thanks to lobbying by hedge funds and brokers, the new rule included no financial
penalties for violators and no real enforcement mechanism. Instead, the Reg SHO merely
created a thing called the "threshold list". This required short-sellers to close out their
positions in any company where the amount of "fails to deliver” exceeded 10,000 shares for
more than 13 days. Taibbi remarked in his mentioned article that this merely meant that, if
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counterfeiters got caught selling a chunk of phantom shares in a firm for two straight weeks,
they were no longer allowed to counterfeit the stock.
As for the Bear Stearns, the company had never shown up on the Reg SHO list. But
beginning on March 12th – the day after the FED meeting that failed to include Bear – the
number of counterfeit shares in Bear skyrocketed. On March 11th, there were slightly more
than 200 thousand shares of Bear that had failed to deliver. The very next day, the number of
phantom shares leaped to 1.2 million. By the close of trading that Friday, the number passed 2
million – and when the market reopened the following Monday, it soared to 13.7 million.
Several experts and even a senator were on the opinion that “naked short-selling” helped
destroy Bear Stearns.
At the same time that naked short-sellers were counterfeiting Bear's stock, the firm
was being hit by another classic tactic of bear raids: negative rumors in the media. Thanks to
the media-fueled rumors and the mounting anxiety over the company’s ability to make its
payments, Bear's share price fell rapidly. Initially, the FED and J. P. Morgan still helped Bear
Stearns, but it could not resist the newer attacks, so its share price fell from $62 to $30. The
emergency credit line that the FED had arranged was originally supposed to last for 28 days,
but Bear Stearns was suddenly told that the rescue timeline had to be accelerated. This was
communicated by the then-Treasury secretary Henry Paulson, who was the former head of
Goldman Sachs, one of the firms rumored to be shorting Bear most powerfully. Paulson,
allegedly, suggested Bear to find a buyer or it could liquidate itself.
J. P. Morgan, the only realistic potential buyer demanded a huge bargain on the sale
price, and that the state should buy up the uncovered papers of Bear Stearns. Finally, at the
intervention of Paulson, Bear Stearns was sold at a symbolic price of $2 per share, while, on
the same day, Bear's stock was still selling at $30.
The Prime Brokerage on the top
Prime Brokerage is the general term for the services supplied by banks of investment
and houses of securities for hedge funds. Without the so-called prime brokers, the hedge
funds could not operate. Their activity comprises the full deposit management of fund assets,
lending securities to short-selling operations, financing of capital transfers and technological
services. (Since the prime brokers fulfil such an important central role in the hedge fund
markets, it is practical to obtain the data necessary for the system risk management from the
limited number Prime Brokers than from individual the risk capital funds.)
We still don't know who was or were behind the naked short-selling that targeted Bear
Stearns. Short-traders aren't required to reveal their stake in a company. On the contrary, the
widespread selling of shares without delivering them emerged into such an enormously
profitable business that even the biggest companies on Wall Street did not want to renounce to
it. One of the booming engines of this financial-services industry was the Prime Brokerage.
The industry started when the Washington government semisecretly surrendered its regulatory
authority to the so-called Prime Brokers.
In 1989, a group of prominent Wall Street broker-dealers asked the SEC for
permission to manage the accounts of hedge funds. In 1994, federal authorities in Washington
agreed, allowing the nation's biggest investment banks to serve as Prime Brokers. Under the
original concept, a hedge fund that wanted to short a stock like Bear Stearns would first
"locate" the stock with his Prime Broker. If this was successful, it then would do the trade
with a so-called Executing Broker. But as time passed and the digital technology progressed,
Prime Brokers increasingly allowed their hedge-fund customers to use automated systems and
"locate" the stock chosen for short-selling themselves.
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Following the Securities and Exchange Commission's approval, Prime Brokers
boomed. Indeed, with the rise of discount brokers online and the collapse of IPOs and
corporate mergers, Prime Brokerage – in essence, the service end of the short-selling business
– has become the most profitable sector that big Wall Street firms have left. So, for instance,
Goldman Sachs alone produced $3.4 billion profit providing "securities services". Since it is
extremely easy for short-sellers to sell stock without delivering, it is not hard to see how this
can be such a profitable business for Prime Brokers.
This activity is similar to a license to print money. Prime Brokers are not really
making sure that their customers actually possess, or can even realistically find, the stock they
have sold. The biggest Prime Brokers like Goldman Sachs, Morgan Stanley and Deutsche
Bank all have so-called “compliance officers”, who are supposed to make sure that traders at
their firms follow the rules. It is widely known that, in practice, they routinely greenlight
transactions they know are risky. It is also known that an automated program is used to report
where the stock destined for short-trading was borrowed from. The problem is that the system
allows short-sellers to enter anything they want in the text field, or even leave the field blank.
The rules are so loose that Prime Brokers do not even need to avoid them. The short-
selling speculators can counterfeit stocks legally, thanks to yet another regulation loophole.
This opportunity involves key players known as "market makers". A market maker is that
active price quotation-maker who not only requires the quotations of others against investors,
corporate and private clients and mediators called market users, but also satisfies quotation
requirements of others, usually commercial banks. These active price quotation-makers
frequently sell phantom shares to the same person who bought the so-called “put options”. (A
put option or a selling option is such a contract in which the buyer of the option, against the
option fee, gets the right to sell, on or until a given day of maturity, a determined quantity of a
certain product, at a pre-determined price, the so-called trading price, to the caller of the
option.)
That buyer, after all, would love to obtain a bunch of counterfeit Bear Stearns stock,
since he can drive the company's price down by reselling those uncovered, fake shares, which
are sometimes called "bullets," because, by “killing” the price, they can make a company
bankrupt. This is exactly what happened to Bear Stearns: Someone bought a pile of put
options in Bear, and sold those shares that never got delivered.
Attack against the Lehman Brothers
Three months after the extinction of Bear Sterns, on June 27th
2008, a whole avalanche
of undelivered Lehman Brothers shares, i.e. phantom shares flooded the money markets. On
that day, their number exceeded 700 thousand, but on July 1st there were more than one and a
half million. In the meantime, also the rumors started, according to which Barclays was
buying up them for 25 percent less than the share price. The tale was quickly debunked, but
the attacks continued, and Lehman Brothers lost 44 percent of its share price. The novelty was
that the major players on Wall Street, detaining insider information, earlier raped only smaller
companies, but now had begun to eat each other alive, and they did not spare even the giants.
It made a rational sense to attack these giant firms, since their books were full of so-called
“toxic assets”, and also the professional and ethic standards of their managers left much to be
desired.
In an order issued on July 15th, Cox, the chairman of the SEC, dictated that short-
sellers must actually pre-borrow shares before they sell them. Nevertheless, it makes us
wonder that the order only covered shares of the 19 biggest firms on Wall Street, including
Morgan Stanley and Goldman Sachs, and would last only a month. This essentially meant that
Dr Janos Drabik
96
the supervisory authority forbade Wall Street players to speculate with counterfeited stock,
but only temporarily, and only concerning the stock of the 19 of the richest companies on
Wall Street. This caused the raise of share price for Lehman Brothers and some of the other
protected companies.
When, in the second part of August 2008, the Cox order expired and fails in Lehman
Brothers stock quickly started mounting again. On September 9th
, there were over 1 million
undelivered shares in Lehman. On the next day, there were nearly six million failed trades, on
September 11th
22.5 million, and the day after 32.9 million. It is understandable that, on
September 15th
, the price of Lehman Brothers stock fell to 21 cents, and the giant company
declared bankruptcy. It was obvious to everyone that naked shorting was the weapon of mass
destruction used to kill Lehman Brothers. This is nothing else than financial terrorism. In fact,
the War on Terror should better be waged against this financial terrorism, which is an anti-
human civil war, because man is the wolf of his fellow man and it is the war of all against all.
Anyway, the fall of Lehman Brothers should have been followed by a full-bore
investigation. But the SEC not only did not conduct such an investigation, but even refused to
identify the main wrongdoers. On September 18th
2008, the Securities and Exchange
Commission did repeal the preposterous "market maker" loophole. The SEC forbade market
makers from selling phantom shares, but that same day, the SEC also introduced an
agreement called "Rule 10b-21," which makes it illegal for an Evil Hedge Fund to lie to a
Prime Broker about where he borrowed his stock. Basically, this new rule formally exempted
Wall Street's biggest players from any blame for naked short-selling.
This order put all the responsibility on the backs of the short-seller brokers. The
chairman of the SEC simply eliminated the law against aiding and abetting hazardous fraud.
On the same day that Lehman Brothers declared bankruptcy, the share price of Goldman and
Morgan Stanley began to fall sharply. Nevertheless, it came to light that for the most part it
was done legally, through legitimate short-selling. Then, at the request of Morgan Stanley, the
SEC banned the legitimate short-selling of financial stocks. Namely, Christopher Cox
imposed a temporary ban on legitimate short-selling of all financial stocks. The stock price of
both Goldman and Morgan Stanley quickly rebounded, because they were instantly
designated as bank holding companies, which made them eligible for a considerable amount
of emergency federal aid. The designation into their new status of these two investors –
instead of a five-day wait for such a conversion required by the law – was done by the FED
and Timothy Geithner overnight.
Naked short-selling was only one of the destructive weapons used in the civil war
fomented by the financial crisis. Nevertheless, the financial civil war itself was caused by
broader and deeper problems. Among them we can list the corruption of the ratings agencies,
the use of smoke-and-mirrors like derivatives, the already mentioned speculation money
bubbles, as well as the overall decline of the value-producing branches of the American
industry. All these pushed Wall Street towards the financial speculation, the synthetic
economic growth, where, in fact, more money is being produced from money, and there is no
true real economic growth. In this respect, trading with "phantom" shares produced by naked
short-sellers is only symptomatic of a problem that goes far beyond the stock markets, the
money markets, but even the whole economic world system.
Matt Taibbi and the money power
The writer of the present lines has been making attempts to understand the money
system of the world since 1994. Since the outbreak of the global financial crisis, I have
studied the opinions of several financial and economic experts, among them the writings
Dr Janos Drabik
97
available in the electronic and printed press and on the internet of numerous worldwide-
known economists. I have systematically filed most of these writings in my archive. When I
came across the analyzing articles written by Matt Taibbi, the journalist of Rolling Stone
magazine, I had to realize that they surpass the studies written about the causes of the global
financial crisis by several economists who are considered authorities on the field. First of all, I
studied the special literature, so the Rolling Stone magazine escaped my attention. I got to
know this magazine as one which identified itself with the hippy counter-culture of the 1960-
ies and 1970-ies, popularizing an alternative system of values.
Nevertheless, as one of the forums of the underground, the magazine is counted
among the higher-level ones. It dealt not only with the popular music, the fashionable protest
attitude, but also with the essential issues of life. On the other hand, the Rolling Stone
magazine, nevertheless, belonged to the cosmopolitan avant-garde, in so far as it rejected,
from the very beginning, that traditional Christian-conservative system of values, on which
the traditional culture of the West and of America was based. Namely, the Rolling Stone did
not rely on universal ethical norms, did not detain such an ethical background, which would it
make possible to solve the serious problems raised by Matt Taibbi in 2010. By spreading the
alternative culture, the Rolling Stone in fact undermined those moral bases upon which the
unveiled abuses now could be driven to a solution.
The Rolling Stone has always questioned – sometimes even cynically mocking – that
traditional Christian system of values, upon which the American society, the American
political and legal system was based. It weakened the traditional values with the utopia of a
kind of naïve modernism. It frequently tried to present such persons as heroes, who had better
be neglected from the very beginning. These “stars” soon disappeared without a name, but, at
the same time, they occupied, for a while, the place of valorous people, worth to be followed.
All in all, the Rolling Stone had a part in the demoralization of America for at least fifty
years. And now, when it bravely undertakes to tell the truth about the moral debauchery of the
money rule system, revealing the methods of the financial capital unscrupulously looting the
society, the Rolling Stone is in trouble, because does not detain the moral background on
which it could rely on to draw the conclusions necessary for the solving of the problem.
It is difficult for the Rolling Stone to make a moral judgment, when, for 50 years, it
undermined the moral bases of the American society in an anarchic way, but consequently. So
that it could represent the long-lasting values and interests of the American society and
culture, it should deny its anarchist, frequently cynical and “épater le bourgeois” style and line
manifested up to now. For this sake, this cosmopolitan, anarchist magazine should return right
to those durable conservative-Christian views, which it championed to mock at cynically and
to ridicule to date.
All this does not diminish at all Matt Taibbi’s bravery, who went after the facts and
dared to tell the solid truth. The real problem with the owners and operators of the Wall Street
is that it is almost all the same what laws and legal prescriptions regulate the operation of the
money system and the economy. So that the law and order could prevail, the presence on a
minimal level of the moral norms is indispensable. In this respect, the civilized attitude means
to keep the rules even if nobody checks it or it cannot be controlled, and to obey such
unwritten rules, which are not given a legal form by the state power. If this moral attitude, this
ethical behavior is missing, the regulations concerning the money system, which defend the
public interest, do not work. The lack of consciousness and voluntary obeying the moral
norms cannot be substituted by any kind of state supervision and police. How much is it worth
then if we are moral? The normal operation of the money system requires the obeying of not
only financial and legal, but also moral norms.
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98
Goldman Sachs – The “veterinary surgeon’s horse” of the money rule
world order
On the “veterinary surgeon’s horse” used for teaching purposes, all diseases described
in medical books can be found. It is obvious that Taibbi used Goldman Sachs as such a
“veterinary surgeon’s horse” in order to show almost all defects of the money system that got
out of the control enforcing public interest. Therefore, when we continue to write about
Goldman Sachs, we use this bank of investment to demonstrate the whole fallen neoliberal
money rule system. Soon after the state bailed out this gambler of the financial global casino
from public money, it showed up record-size profits, and paid even higher allowances and
bonuses to its employees than ever before. If we examine it from closer, it is possible to
demonstrate the intimate trading generated by software, the share of confidential information
with well-informed, chosen VIP clients, and, equally, the trade with second mortgage,
speculating on their simultaneous fall of value.
As a symbol of the money rule world order controlled by neoliberal delusions, the
Goldman Sachs became, more and more, the target of the most different criticisms. A
considerable part of the public opinion in America and the world got to the conclusion that the
Goldman Sachs and the money rule groups of interests represented by it deliberately caused
the financial collapse and the economic world crisis following it, and made a huge profit of
this. But Goldman Sachs and those who it represents manipulated not only the money
markets, but also the highest state power, the legislative body in Washington, the Congress,
and the White House, representing the presidential power. On the third place, we also have to
mention the opinion power under the control of the organized private power, since the mass-
media devices are unambiguously in the property or under the hegemony of the money power.
The continuous creation of the speculation money bubbles mentioned before means in
fact the global practice of “creative destruction”. This term was introduced by Werner
Sombart and Alois Schumpeter. In his work titled Capitalism, Socialism and Democracy,
Schumpeter referred to the changes that occurred following the radical innovations with this
term. The competition continuously enforcing the innovations formed the engine of the long-
term economic development. Certainly, the successful innovation offers advantage for its
introducer on the market, weakening the position of the traditional enterprises and reducing
their profitability, which forces them to innovation also. So, the creative destruction is an
economic term, which can partially give an answer to the question how a competitive stage
can become a monopoly position, and even vice versa, how can create again market
competition with the restriction of monopoly positions.
In 2010 we can say that Goldman Sachs is a kind of ruling organization of the
financial universe, which disposes, like its own, of a global stock casino, in which it can
always create a winning situation. There are people who put it more carefully and only stated
that Goldman Sachs is the most powerful financial organization of Wall Street, which actually
belongs to the sphere of interest of the House of Rothschild. The House of Rothschild is the
number one dynasty of that super-rich community about which David Rothkopf wrote in
detail in his book titled Superclass. To the same network controlled by the House of
Rothschild belongs also the Bilderberg Group, for instance, but also that layer of super-
speculators, which are symbolized by George Soros. The brain trust of the current American
president is also composed of persons belonging to the Rothschild network: Timothy Geithner
and Rahm Emanuel. They became the successors of Robert Rubin, Lawrence Summers and
Paul Volcker.
The Rothschild network also includes the Rockefeller, Ford and Bush dynasty,
together with the Bush couple. The core of the wealth of the Rothschild dynasty is made up
by the undivided foundation wealth of the family, the current amount of which is more than
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100 trillion dollars, according to different expert estimates. We detain only estimates, because
no heritage inventory is made about this family foundation wealth, and they do not even pay
inheritance tax after it. The personal wealth of the presently numerous Rothschild family can,
really, be less than that of Bill Gates, Warren Buffett or Carl Slim, and, in this respect, the list
of the Forbes magazine on the wealthiest men in the world can be considered trustworthy.
Although it is true that the Goldman Sachs controls also the Wall Street, and has a
decisive impact on the decision-makers of the American state, we still must say that the
Goldman Sachs cannot be considered the main power of the world economy even if it was
maybe the main causer of the collapse of the global financial system. In 2010, the Goldman
Sachs can be regarded extremely dangerous because its profit, exceeding that of all others,
comes from trading with its own property, a money obtained from the American taxpayers,
and now the company trades with this money on the stock markets, consumer goods markets
and overseas markets. Goldman Sachs developed such a computer software controlling the
financial transactions, which is globally suitable for the unlimited control of money markets.
The server of this software is in the New York Stock Exchange. Goldman Sachs
knows the information concerning the stocks sooner and more exactly than the owner of
the stock itself. But even more important than this is the fact that the Goldman Sachs detains
something that means a more powerful force than any computer software. And this is the
intimate information. The people of Goldman Sachs, its former and current leaders
sometimes have high governmental functions, and sometimes are leaders in the bank itself or
in controlling organizations. While they flow here and there, they take with them the
information concerning the main future decisions of the state institutions and the government.
In this way, Goldman Sachs always knows what is to be expected, and so is able to place
itself in the winner’s position in the right time, overtaking all other competitors. Goldman
Sachs not only knows the most important pieces of information, but it can also create them
itself, and is able to manipulate them according to the most various strategies. Its men are
present in the ministry of finance, at the stock exchange supervision, in the World Bank and
in all key institutions of the printed and electronic mass-media. Not only the opinion power
stars are Goldman’s paid agents, but it always has eyes and ears also in the White House.
If all this is true, how was it possible that Goldman Sachs was still unveiled during the
financial and economic collapse? Why did Goldman Sachs have to send his former number
one, Henry Paulson, who was U.S. Secretary of the Treasury when the crisis broke out, to the
members of the Washington legislative body?
Paulson threatened the senators who opposed the adoption of the huge state bailout
telling them that they would have to count with the revolt of the American people and the
introduction of the state of emergency if they do not adopt the nearly one trillion dollar state
bailout for the banks that caused the crash.
Lloyd Blankfein, the number one leader of Goldman Sachs, was aware of the fact that
the second mortgage market, in the creation of which also Goldman had a lion’s share, would
collapse. He was led by unscrupulous greediness and arrogance when he was only concerned
with the amount of profit that Goldman could pocket when the housing market bubble bursts.
Today we already know that Goldman’s competitors, Bear Stearns, Morgan Stanley and
Lehman Brothers did not detain the appropriate information, and owned a huge amount of
unsellable securities. When the first big shake happened, Paulson called up the Chinese and
asked for a ten billion dollar immediate relief for Bear Stearns. When the same happened to
Citigroup, the same Paulson raised a five billion dollar immediate relief from the Arabs to
save it.
Paulson reassured the creditors that their investments were secure. But when the newer
bankruptcies happened, they did not answer the phone calls asking for help. Paulson knew it
well that for his former company, the Goldman Sachs, the crisis of the interbank crediting and
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the burst of the housing bubble are not only extremely profitable, but they made it possible to
get rid of the old competitors. Nevertheless, Goldman Sachs did not weigh that even a global
economic crisis can burst out as a consequence of all these. Blankfein and his team thought
that their man in Washington, Paulson, would continue to control the situation and the
speculative deals could go on. They were prepared to make a good profit from the economic
collapse of America. But both Blankfein and Paulson were surprised by the fact that the
collapse of the financial system lead into a global economic crisis of an unparalleled size.
When the foreign markets collapsed, Goldman Sachs had to realize that, no matter
how huge a profit they can pocket from the economic hardships of the United States, if the
world economy collapses, also their profit will be lost. This is why Goldman Sachs (and its
majority owner, the Rothschild dynasty) had to send their key figure, Henry Paulson, to the
American Congress to blackmail out 800 billion dollars taxpayers’ money from them, to
bailout the banks. The formula “give us the money or there will be a revolution” worked.
After this, Goldman Sachs did not lean on foreign creditors any more in its action to savage
the American financial system, but it had to persuade the American taxpayers to do so. Since
its own people were present on all levels of decision-making of the American administration,
Goldman Sachs could reach that the bill on the blackmailed 700 billion dollars passed the
Congress urgently, and also the President at that time, Bush, signed it. Even Obama, the then
only campaigning current President, took part in softening the hesitating Democratic
representatives.
The Obama administration, the private-owned FED and the American Treasury
pumped many trillion dollars from the taxpayers’ money, as a present, into the suddenly
dried-out financial system. The Obama administration and the Washington Congress,
nevertheless, did not manage to reform and re-regulate the financial system of the United
States. Until May 2010, the new president and his government did nothing but agreed
obediently to the continuing of the speculation gambling. It is characteristic to the arrogance
of Goldman Sachs that it paid record-size bonuses to its employees from those billions he
obtained from the blackmailed “benevolence” of the American taxpayers.
The political power, which is more powerful than the governments
The centre of this power is on 85 Bond Street, New York. This is the building in
which the most perfect “money-making machine” invented by the global capitalism operates.
According to the 9th
November 2009 issue of the British The Sunday Times, the world power
which operates from this centre is really a political power that is stronger than even the
governments. Here is the office of Lloyd Blankfein, the number one man of Goldman Sachs.
Nevertheless, the powerful billionaire himself is only a servant of an even more important
person, Lord Rothschild, the first-born noble descendent of the British branch of the
Rothschild dynasty. In the hierarchy of the non-public (i.e. not official) sphere of the global
money power, Lord Rothschild detains also the title “King of the Jews”.
When Blankfein was asked about the incredibly profitable business activity of
Goldman Sachs, he, surprisingly, answered only this: “I’m doing God’s work.” If we recall
the opinion formulated with bitter irony of the famous 19th
century German-Jewish writer and
philosopher, Henrich Heine, namely that “Money is the God of the Jews, and Rothschild is
his prophet”, Blankfein can really fulfil a special vocation, worthy of the prophets, on the
commission of Rothschild. Goldman Sachs, the giant financial company, is officially a public
corporation, the securities of which can be bought also by private persons, both in stock
exchanges and outside of them, but the control equity stake of the consortium is in the
property of 221 persons being in close connection with each other. The main owner is Lord
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Jacob Rothschild, and personally he, as well as other members of the Rothschild family are
the decision-makers and beneficiaries of Goldman Sachs. The money empire, which can be
considered the most powerful institution of the global monetary system, operates under the
hegemony of the Rothschild family. This is the heart and the brain of the money empire.
Many researchers, among them Texe Marrs, consider the Goldman Sachs an
institution which is more important than the CFR (Council on Foreign Relations), the TLC
(Trilateral Commission), the Bohemian Grove and the Skull and Bones. The listed ones, and
the other similar private societies and networks can easily be influenced by Goldman Sachs,
since all of them operate under its hegemony. The personalities seeming to have great power,
being present in the visible sphere of international life, from Washington, through London to
Beijing and Tokyo, are, in fact, the chosen ones and servants of this money rule world power,
who substitute the real decision-makers on the stage of world politics.
If we examine it from closer, it comes to light that Goldman Sachs is one of the most
important tools of the money rule world order symbolized by the Rothschild dynasty. At the
time of the changes in Russia, George Soros stated: “Big moneys make the history…”.
Today these “big moneys” use the Goldman Sachs to create the total control system covering
the whole of global financial structure under their hegemony. For the sake of the
institutionalization of the global system controlled from a single centre, the money power, on
one hand, demolishes existing structures, and, on the other hand, re-structures them. Part of
this is the radical transformation of the United States into such a financial, economic and
social structure, which enhances the long-term settlement of the money empire hallmarked by
the Rothschild dynasty.
Even Barack Obama owes the taking-over of the control of the White House partly to
the fact that he was selected, by the main decision-makers of the money empire, to execute
the radical transformation of the American state and society. In the financial publication titled
Market Rep, Perry Rod called Obama the captured chess-piece of the Wall Street, more
exactly of Goldman Sachs. David Bromwich, professor of Yale University, characterized the
same person saying that Obama is nothing else than one of the important investments of the
Wall Street. We have already mentioned before that The Goldman Sachs, since its
establishment in 1869, has been leading the conception and application of the different
financial frauds. These include the IPO, the initial public offering of securities, but the
Goldman was also leading the stock manipulations causing the 1929 stock exchange crash. In
1970, he also played a key role in driving the American Penn Central Railroad into
bankruptcy, from which it pocketed a huge profit.
Goldman played a decisive role in the disintegration of the Soviet Union, and in
enhancing that the persons chosen and supported by it should become, with the so-called
privatization tricks, the private owners of the former Soviet public property. These persons
came from among the technocrats of mostly Jewish origin of the Communist party state
nomenclature, and they became the oligarchs of the present-day Russia, the owners of the
most valuable national wealth, including the oil fields and gold mines.
Goldman Sachs has a decisive influence on the evolution of world events. In our days,
it has nearly the whole American government at his disposal. Obama bows his head in front of
Goldman Sachs to the same extent as his predecessor, George W. Bush did. The Secretary of
the Treasury of the Bush administration entered the White House from the head of Goldman
Sachs. The present-day Secretary of the Treasury, Timothy Geithner, as the President of the
FED of New York, received the orders from Goldman Sachs. Now Stephen Friedman, as the
head of the FED of New York, fulfils the desires of Goldman. Even President Bill Clinton
obeyed to his Secretary of the Treasury, Robert Rubin, who previously also was the leader of
Goldman Sachs.
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Warren Buffet, declared the richest man in the world, hurried to invest ten billion
dollars cash in Goldman Sachs securities, when he was urged to do so. Even Arnold
Schwarzenegger got into the governor’s seat at the order of Lord Rothschild. At the same
time, it is well-known that the loss of value of the Californian state bonds and the getting into
a near-bankrupt situation of this important member state of America is owing to the fact that
Goldman Sachs short-traded in mass with the state bonds, speculating on their large-size loss
of value.
We could experience this phenomenon also in Europe when even the euro started to
weaken, in which the key role was played by the fact that the Goldman Sachs sold valueless,
crap derivatives (CDOs and Credit Swaps) of many billion dollars value to Greece earlier.
And after this, it placed a huge amount of Greek state bonds on the market, speculating on
their loss of value with short trading. So Goldman Sachs pocketed a huge profit firstly by
selling the valueless securities, and secondly with the speculation on their loss of value.
The SEC starts an investigation against Goldman Sachs
The SEC, the Securities and Exchange Commission, started an action against
Goldman Sachs because, at the beginning of 2007, it put such CDOs on the market, which
were covered by second mortgage packets. Goldman did not make it public that the Paulson
& Co. risk fund itself also wants to make a profit from the securities put on the market in this
way, and is betting on their price decrease on the stock market. John Paulson, the manager of
the hedge fund, asked Goldman, the bank of investment, to issue such mortgage-based
securities, on which he could make a big yield by shorting. Goldman Sachs agreed, and billed
Paulson 15 million dollars fee. What is more, the investor made it possible to Paulson to
“borrow” the same securities and to short-trade with them, that is to speculate on their price
decrease on the stock market.
Goldman qualified these securities predestined to failure with “AAA”, the safest
marking, and put them on the market for its own clients. It collected considerable sums from
them, and, following John Paulson’s pattern, he himself short-traded with these AAA-marked
securities in secret, speculating on their price decrease. According to the standpoint of the
SEC, Paulson and the Goldman created such an investment mediating medium, forced path,
on which the issued securities were moved and thus they lost value. The essence of this was
that, while Paulson and Goldman short traded, the duty of Goldman was to beat up such
clients (pension funds, insurance companies and other investors aiming at security, detaining
covered money), which, in turn, expected for the price increase of the given stocks or
securities.
John Paulson’s firm made one billion dollars on this short trading, but no action was
brought against it. The SEC initiated legal proceedings, nevertheless, against Goldman’s
Vice President, Fabrice Tourre, who was primarily responsible for the creation and selling
of the toxic securities, performed with multiple capital transfer. Goldman Sachs and Tourre
were aware of the fact that it would be nearly impossible to sell CDOs if they made it public
for the investors: John Paulson, on one hand, chose the securities with doubtful value used as
coverings himself, on the other hand he made high-value bets on their depreciation in a short
time.
The action started by the SEC also covered the fact that, in January 2007, Goldman
Sachs contacted the ACA Management LLC, performing credit risk analyses, with the
request to choose those CDOs eligible for security, which are recommended by John Paulson.
Goldman Sachs undertook to help the putting on market of the so chosen CDOs with capital
transfer transactions. Paulson, Tourre and the ACA managers personally discussed, in
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February 2007, what securities they would include in the packet covered with mortgage and
used as security. Paulson and Tourre already knew that they would speculate on the rapid
value loss of these with short transactions. Nevertheless, the ACA, which delivered the
expertise, did not know about this. As a consequence, it is utmost probable that the
Düsseldorf-based IKB Deutsche Industriebank AG would not have invested into this CDO
portfolio, if it had not be advised to do so by the ACA. On the other hand, the ACA did not
know that it was misled by Paulson and the Goldman Sachs.
The SEC’s action also comprised the Abacus 2007–ACI case. The Securities and
Exchange Commission accused Goldman Sachs of having created synthetic CDOs for some
of its clients expressly with the intention to make a big profit on their pre-planned loss of
value. The Abacus 2007–ACI was created on the order of John Paulson, who was already
short trading in mass with synthetic securities at that time. The Abacus 2007–ACI was
created, from the very first, for failure, and it was Paulson who selected those second
mortgages, which he wanted to short. The securities, carefully selected and doomed to failure
in this way, were included into packets and sold, as first-class, secure bonds, to the clients of
Goldman Sachs. In this case, the legally delicate circumstance is that the investors lured to be
buyers were told that the investment packet was made up by a third party, an independent
credit risk rater. John Paulson can hardly be considered to be such an independent credit risk
rater, since his main activity was already the shorting at that time.
The started legal proceedings have immediately weakened Goldman Sachs, and
strengthened its competitors. The operation of Wall Street cannot be considered a zero-sum
game. Nevertheless, it is a fact that, following the shake of the money system and the
economic crisis, the competition for the obtainable profits sharpened. After the suing by the
SEC, many investment firms made steps to increase their market share at the detriment of
Goldman Sachs.
It is well-known that Goldman Sachs sponsored Obama’s election campaign with 994
thousand dollars in 2008, and, by this, it was his main supporter. It is also a fact that, under
Obama’s presidency, the SEC got a new leadership, headed by an iron-handed president and a
director who strongly enforces the rules. In 2009, this SEC, as a regulating and controlling
authority, has already started investigations in two times more cases than in 2008, the last year
of the Bush administration. The levied fines also increased with 35%. Due to this severe
attitude, the pressure in the Congress lessened for the moment, concerning which the SEC and
the CFTC (Commodity Futures Trading Commission) should be unified and transformed into
a giant super-controlling institution.
Nevertheless, several proceedings of the SEC were not efficient. If the investigation
started for securities frauds against Goldman were also inefficient, this would considerably
weaken the Securities and Exchange Commission. Such a failure would support the
accusations according to which the SEC intervened in April 2010, in the middle of a debate
on the general financial reform because the Obama administration wanted to frighten the Wall
Street and wanted to persuade it in this way to support the new bill enforcing the stricter
regulation.
Attempt for the re-regulation of the state supervision of the money
system
The money system of the United States is a private money system since 1913. At the
beginning, the regulating and controlling role of the state still asserted itself over the Federal
Reserve System and Board being in private ownership, but this gradually decreased and,
practically, even ceased. When, nevertheless, this money system that became an organized
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private power got into crisis, its owners and controllers turned to the state, asking it to save
the system from collapse with the money of the taxpayers. The FED, the Wall Street and
the government are the main operators of the current money system. All of them have
their indispensable role. But, till the FED and the Wall Street are unambiguously the centres
of the organized private power, the same cannot be said about the state power embodied by
the White House and the Congress of Washington. According to the Constitution, still
formally in effect, the state power must represent the whole society, the interests of all
Americans. It cannot be only the server of the organized private power, even if the organized
private power has, in fact, already taken over the control of the state.
This may explain the fact that, at the beginning of 2009, the Congress adopted the
Fraud Enforcement and Recovery Act, signed by President Obama on 29th
May, 2009.
According to this law, a ten-member, two-party commission, composed of Democrat and
Republican senators and representatives, the Financial Crisis Inquiry Commission (FCIC) was
established, with the duty of investigating and revealing the causes of the world financial
crisis between 2007–2010. This Congress investigation committee is called Angelides
Commission, after its president, the Californian Democrat representative, Phil Angelides.
Since in 1930, during the great depression, there was also a similar investigation commission,
the Pecora Commission, the FCIC is also called New Pecora Commission. It is also
compared to the 9/11 Commission, investigating the background of the September 11, 2001
events, but FCIC has a greater authority than it, because it has the right to get any document
and to summon anybody under the burden of a fine. The 9/11 Commission did not have these
authorities.
The main duty of the FCIC commission was to investigate those internal and external
causes, which led to the financial and economic crisis of the United States. Among others, this
means that the commission, composed of highly qualified members, has to examine exactly
what frauds and abuses took place in the financial sector, including also the operation of the
mortgage business branch. The commission is obliged to hear also the financial leaders of
both federal and member state level, and to establish to what extent they are responsible of
neglecting their regulation and control duties. The commission supervises the monetary policy
according to how it raised the huge amount of money, which was necessary for the
speculations.
In addition, the duty of the commission is to examine closely the evolution of the
transactions outside accounting and the whole of the banking accounting practice. Its
important task was the auditing of the activity of the Federal Reserve Board, as well as the
analysis of the effect of the giant enterprises created through fusion on the whole of the
money system and economy. The Angelides Commission has to examine the stock exchange
practice with CDSs and short-selling, and some other important circumstances, which led to
the crash of the financial system.
In the first months of 2010, a wide campaign emerged in the United States, at the
initiative of Ron Paul, a former Texas representative, who ran for president on the latest
election. The aim of the campaign was to audit the whole of the Federal Reserve System,
for the first time since its establishment, and, based on the laws in effect, experts should
examine the accounting of the FED, as well as the classified decisions of its governing bodies.
The goal of the campaign “Auditing the FED” is to reveal to what extent contributed this
private financial institution fulfilling the role of the central bank to the bankruptcy of the
money system, how the FED abused its power and enhanced the inflation of the money and
the devaluation of the dollar.
Several million Americans already joined the campaign, who demanded the auditing
of the FED from the legislative body of Washington. They argue that altogether 13 billion
dollars from the taxpayers’ money were spent on bailout packets and loans, in the adoption of
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which not only the Congress, the financial leadership of the Bush and Obama administrations,
but also the Federal Reserve Board, avoiding all control, played a key role.
The Financial Crisis Inquiry Commission held a public hearing between April 7–9,
2010. During it, Alan Greenspan, the former Chairman of the FED, was examined. Financial
expert Frederick J. Sheehan has been studying the operation of the FED for years, and he
even wrote a book on this with the title Panderer to Power. In this book, he sets forth how
Greenspan enriched the Wall Street with astrological incomes, and caused the situation, which
ultimately led to the bankruptcy of the financial system and the economic crisis. Already prior
to the hearing, Sheehan wrote a letter to all members of the Angelides Commission. He
informed them that he has been continuously studying the documents of the FED’s Federal
Open Market Committee, the FOMC, as well as the minutes of the Congress and Senate
hearings. He knows Greenspan’s speeches, interviews and writings since 1959. Since his
retirement, the today 80 years old Greenspan tries to palliate and justify himself on nearly all
forums. Sheehan states that Greenspan had a decisive role in the fact that the mortgage market
rocketed. The mortgage debt amounted to 153 billion dollars in 1995, which increased to 380
billions by 2000, and to 1,100 billion dollars by 2005. The mortgage portfolio of Fannie Mae
and Freddie Mac, the two real estate firms bailed out by the American state, amounted to only
132 billion dollars in 1990, but, at the same time, in April 2003, it increased with 139 billion
dollars in only one single month.
The starting of the mortgage machinery was a known fact. Nevertheless, Greenspan
stated on many forums: he did not know how big this market grew. In the FED’s Federal
Open Market Committee, they were making jokes, even in November 2002, about that the
purchases had to be restricted to “three real estates per head”. Greenspan used his position
and authority to enlarge the mortgage market. In February 2004, he stated in the National
Association of House Builders that he found the mortgage loans with fixed interest too
expensive, and that the house buyers could save many thousand dollars if they took the
mortgage loan with variable interest. After this statement of his, the ratio of the mortgage
loans with variable interest raised from 2% to 47% by 2002, and it already surpassed 60% in
2005.
On September 26, 2005, Greenspan made a speech at the annual convention of the
American Bankers Association, and he not only encouraged the widest possible extension of
the mortgage crediting with variable interest, but he also recommended a whole range of
mortgage loan novelties. He mentioned the mortgage loan of 40 years term, as well as the so-
called piggyback mortgage. This is a shared mortgage loan, such a joint loan, in which
several creditors share a single mortgage, in a determined ratio and order, but the combination
of a building and long-term loan is also called piggyback mortgage loan. He also mentioned
that the HELOC (home equity line of credit) can also be taken as a piggyback mortgage loan.
(The piggyback mortgage loan is such a subordinate mortgage loan, where the debtor can call
down sums from the available line of credit according to his needs. The line of credit
represents a certain percentage of the net property value in the real estate of the borrower.)
Greenspan comforted his audience made up of bankers, saying that he was not worried
about that the home-buyers would be especially exposed to a radical turn occurring in the
transformation of the price of homes. Nevertheless, he finished his remarks made in front of
the American Bankers Association Annual Convention, making the following statement:
“In summary, it is encouraging to find that, despite the rapid growth of mortgage
debt, only a small fraction of households across the country have loan-to-value ratios greater
than 90 percent. Thus, the vast majority of homeowners have a sizable equity cushion with
which to absorb a potential decline in house prices. In addition, the LTVs for recent
homebuyers appear to be lower in those states that have experienced the most explosive run-
up in house prices and that, conceivably, could be at risk for the largest price reversal.”
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As a main regulator and controller of the American banking system, Greenspan did not
state all this in vain in the convention of the National Association of House Builders. The
participants understood this encouraging, and continued to build and sell the houses with an
even higher impetus. Thus, the FED was the causer and not the injured party of the abuses
emerged in the mortgage loan branch. The monopoly of the FED is the issuing and putting in
circulation of the money, the mediating agent of the economic life. The overgrowing crediting
needs an overgrowing money issuing. The FED operates the banknote press and the
commercial banking system produces the credits. The FED can prescribe the conditions of
creating reserves for the banks. If, for instance, a commercial bank sticks to the prescribed
reserve ratio 10:1, it cannot lend more than 10 dollars in case of a one dollar reserve.
The FED, being in 100% private property, solely detains the state prerogative to
increase and decrease the reserve prescriptions concerning the commercial banks. Under
Greenspan’s chairmanship, the FED considerably decreased the reserve prescriptions of the
banks several times, but never made them more severe. Accordingly, when the commercial
banks could not finance the production programmes of the real economy any longer, they lent
the available money to investment financial institutions, investment funds, property holdings,
second mortgage lenders and speculators on the commercial housing market. Had Greenspan
wanted it, the FED could have limited the amount of the money put in circulation, which
could have refrained the unscrupulous speculation, which was fostered also by the abundance
of money and proved to be destructive.
In his above referred letter, Sheehan sensed it well that Greenspan would smartly
wriggle out of responsibility in front of the Financial Crisis Inquiry Commission, the
FCIC. If we study through Alan Greenspan’s statement, originally made for the Brookings
Institute, but attached to the FCIC as an official document, we can state that Sheehan’s
worries were founded. In the course of his hearing, he not even once was in a hard-pressed
situation, and he could apply the whole repertoire of the public life play. He was once
condescending and once professional, once militant and once permissive, and once bitterly
sarcastic or sharply scornful.
The Americans could see the well-known, old Greenspan again: that who sometimes
chatters boringly, who replies severely and who apologizes endlessly. In spite of the financial
collapse, the Commission treated him with exquisite honour, and, instead of a severe
argument, only a friendly match took place. Nowadays many Americans already know that
nobody else is burdened by bigger responsibility for the financial crash and the economic
crisis than Alan Greenspan. He can say anything, but he has a lion’s share in the fact that 8.5
million Americans are queuing for unemployment benefits, more than 300 thousand families
lose their homes monthly, and never have so many people lived on food aid stamps.
Greenspan made nearly everybody responsible for the occurred crisis, from the
securitization of subprime mortgages, through the business practice of Fannie Mae and
Freddie Mac to the demolition of the Berlin wall and the excessive financial strengthening of
China – except for the FED and himself. When he was asked about the money bubble,
Greenspan used the technique of asking back. “Bubble? What bubble? Who saw a bubble at
all? Who said here anything about a bubble? What could have been done? How could we
have stopped it? All in all, who could know about it?”
But, in the next sentence, Greenspan admitted, almost without transition, that he saw
the bubble, but he did not think he could persuade the Congress to do something about it.
Greenspan said: “[If]we had said we’re running into a bubble and we need to retrench, the
Congress would say: ‘We haven’t a clue what you’re talking about.’ “
The only really essential word-duel took place between Greenspan and Brooksley E.
Born. Ms. Born was an attorney, earlier the Chairman of the CFTC, the Commodity
Futures Trading Commission. The duty of this commission is to regulate and supervise, as
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an independent agency of the U.S. government, the futures and options markets. As Chairman
of the CFTC, Born strived to reach that the Congress and the President should assign the
commission – beyond the transactions with derivatives at the stock exchange – the task of
controlling the derivative transactions outside the stock exchange. This foreseeing and timely
endeavour of her was, nevertheless, opposed by regulators performing other financial control.
Born, thus, wanted to stop, in time, the FED led by Greenspan from making the trading with
derivatives totally liberal. Born not only succumbed in this struggle, but also lost her function.
It is worth citing a few sentences from the duel between Born and Greenspan:
“In your recent book, you described yourself as an outlier in your libertarian
opposition to most regulation. Your ideology has essentially been that financial markets, like
the OTC derivatives market, are self-regulatory and the government – and the government
regulation is either unnecessary or harmful. You've also stated that as a result of the financial
crisis, you have now found a flaw in that ideology.
You served as chairman of the Federal Reserve Board for more than 18 years, retiring
in 2000, and became, during that period, the most respected sage on the financial markets in
the world. I wonder if your belief in deregulation had any impact on the level of regulation
over the financial markets in the United States and in the world. You said that the mandates of
the Federal Reserve were monetary policy, supervision and regulation of banks and bank
holding companies, and systemic risk. You appropriately argue that the role of regulation is
preventative but the Fed utterly failed to prevent the financial crisis.
The Fed and the banking regulators failed to prevent the housing bubble; they failed
to prevent the predatory lending scandal; they failed to prevent our biggest banks and bank
holding companies from engaging in activities that would bring them to the verge of collapse
without massive taxpayer bailouts; they failed to recognize the systemic risk posed by an
unregulated over-the-counter derivatives market; and they permitted the financial system and
the economy to reach the brink of disaster.
You also failed to prevent many of our banks from consolidating and growing into
gigantic institutions that are now too big and/or too interconnected to fail. Didn't the Federal
Reserve system fail to meet its responsibilities, fail to carry its mandates?”
Greenspan simply avoided to give a substantial answer, and only said: “The notion
that somehow my views on regulation were predominant and effective as influencing the
Congress is something you may have perceived. It didn't look that way from my point of
view.”
In essence, this answer contains that Greenspan and the FED led by him did not
regulate the market of derivatives outside the stock exchange because nobody would have
paid attention to it. Nevertheless, this is hard to believe, since Alan Greenspan, in his time of
service, was declared the greatest central banker of all times, and was not regarded a kind of
paper-maker bureaucrat. In fact, Greenspan escaped from giving a substantial answer to
Brooksley Born and the commission representing the interests of the whole American society.
He did not feel and show any regret, and he also fled from being called to give account.
What can Obama’s crisis management show up?
When, in February 2009, the continuation of the 200 billion dollars bailout package
started by the Bush administration was announced, which was called, euphemistically,
Troubled Assets Relief Program, TARP, it became unambiguous that they want to use
public money also in the future, with state guarantees, to remove the uncovered securities and
banking devices from the ledgers of banks in private property. These uncovered securities
would be taken over by the government or such private investors, hedge funds, property
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management firms, which find this productive. The original bailout program and its modified
version were initiated by Paulson, who was committed to Goldman Sachs, and by Geithner,
committed also to Goldman.
The essence of this concept was that the banking system should be helped with the
billions from taxpayers, so that it should not go bankrupt and could continue its crediting
activity, necessary for the operation of the economy. Saving banks from bankruptcy, which
went insolvent is not identical with regulating their normal operation and restoring it. In fact,
the Obama administration enlarged the original 700-billion bailout packet into a 1.5 trillion
dollar state relief packet. It did not treat the basic cause of the financial crisis: the tide of the
unsustainable bad credits, which grew as an avalanche year by year. This avalanche swept
away the value-creating real economy. At the beginning of 2010, we can already see that the
banks, sunk in their hazardous gambling, used the huge amount of public relief money to pay
their debts, to buy up the smaller competitive financial institutions, as well as for the financial
reward, surpassing any imagination, of their bankruptcy-causing swindler or incompetent
controllers.
The ratio of the GDP of the United States compared to the total debt of the country
was essentially worse in 2010 than in 1933. In 1933, the debt amounted to 300% of the GDP.
Nearly 20 years were necessary so that the ratio of the amount of the debt and the gross
national product could go down under 140%. Since in 2008 the level of indebtedness
surpassed 358%, therefore – taking into account the 1933 Great Depression – a similar
decrease of the debt could take place only in 2027.
For the moment, all that happened was that the unsustainable and unpayable amount of
debt was transferred from the banks in private property to the state, and now it is charged onto
the taxpayers. This kind of regrouping does not solve the problem. It would be necessary to
ban, with a new regulation, the occurrence of such an indebtedness in the money system. If
the consequences of the unscrupulous speculation is simply loaded onto the state, namely onto
the whole society, it is not a real change. The solution of the problem is hindered by the fact
that the same persons should make the decisions of the state, serving the public interest, who
caused the whole situation themselves, as leaders of the private banking system. From this
point of view, it is irrelevant that the men of the Wall Street, symbolizing the money power,
get into the government as Republicans or Democrats.
Rodrigue Tremblay and L. William Seidman suggest that the Obama administration
should establish a Banking Restructuring Trust, which would temporarily perform the
supervision of the big and bankrupt banks, would streamline their organization, would
terminate their bad credits and credit risk commitments, and it could consolidate the whole of
the banking system in this way. This is more efficient and less costly than aiding them with
more trillions from public money. The former chairman of the FED, Paul A. Volcker made a
similar suggestion. According to his standpoint, the uncovered and unsellable CDOs and
CDSs of the banks must simply be written down and wiped out from the ledgers of the
banks. This would relieve the banks from those extreme speculations, which became their
main activity in the last two decades. It would make it possible that the banking system –
coming back to its original function – could assure again the crediting of the real economy.
Such a basic change would make the improvised and frequent interventions of the state, which
are not suitable for the termination of the general crisis of the banking system.
The bank-saving bailout packet of Geithner, the current Secretary of the Treasury, is
not identical with that real economy supporting programme amounting to 800 billion dollars,
the goal of which is already the soonest restoration of the operation of the productive
economy. So that all this should be effective, it should be taken into account that, in our days,
the national economies already operate as parts of a strongly integrated and global economy.
Therefore, it is also important how the leading institutions of the European Union react to the
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efforts of the United States. The American financial crisis had a stronger effect even on
Europe, than it was supposed at the beginning of the crisis.
Will there be a new financial world order?
It is an unquestionable fact that the financial collapse occurred in 2008 shocked the
whole world economy. Giant banks went bankrupt, and also several countries got close to the
financial collapse. What happened between 2007–2008, can only be compared to what
happened in the course of the Great depression between 1929–1933, during which, finally, the
place of the classical liberal economic world order was taken by a new type of financial and
economic order. Another change took place in the 1970-ies, when the years of stagflation
occurred, i.e. the economic life was characterized by both stagnation and inflation. The
financial crisis broken out in 2007 proved that the extremely unregulated orthodox neo-
liberalism is, in reality, non-functional. The possibility also arose, according to which the
state, obliged to represent also the public interest, should take back, at least partially, the
control over the financial market into its authority. So, the state should bring more severe
regulations, and should enforce them more efficiently.
The paralysis of the financial system, and the size of the subsequent economic crisis
were shocking. Not only giant banks became insolvent, but even states got into a near-
bankrupt situation. This time, the crisis struck primarily the central structures of the financial
world order, but neither the peripherals were left out of it. It is also worth the attention how
many different measures the involved governments took in order to handle the situation:
bailout packets, wide-scale nationalizations, economy-reviving measures, the reduction of the
interest rate to zero and the increasing of the quantity of money in circulation for the sake of
maintaining liquidity. They threw aside the neo-liberal orthodoxy, which was considered a
taboo to date, and the state returned at once, what is more, as the main character of the
economic life. The crisis shocked the whole world economy, but it comprised primarily the
process of the recessions emerging in individual states, climaxing in different times. The
common characteristic of the crisis was that the states got extremely indebted, and they
transferred the consequences of the paralysis of the money system onto the taxpayers.
The political consequences of the crisis are developing right now, both in the
individual states and on international level. In many countries, changes of government took
place, and it is not decided yet who are going to win and who are going to lose, and how the
division of the financial and economic resources will change. On international stage,
important changes can be expected in the power equilibrium between East and West, and we
have to count with the further strengthening of China and India and the weakening of Europe.
More and more is being said, already even in official circles, about the introduction
of the new world order, the essence of which is that a strong central control is needed even
globally, in order to avoid the general chaos and anarchy. The new power centre of the world
must be strong both in financial and military terms. French President Nicolas Sarkozy, even
prior to the crisis, in September 2007, at the general assembly of the UNO, initiated the
creation of a new, world-scale financial architecture, and the introduction of a
supranational control. He proposed on world scale the New Deal, which was introduced in
America by President Franklin Delano Roosevelt after the Great Depression.
At the G20 summit held in February 2009 in Berlin, British Prime Minister Gordon
Brown also promoted such a worldwide New Deal. According to Gordon Brown,
supranational institutions are necessary for the regulation and supervision of the financial
system that became global, which have a large-scale enforcing authority. On several internet
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forums, it can be read about Sarkozy and Brown that they are very close to the Rothschild
dynasty, which controls the supranational financial and power structures.
According to several representatives of the global elite, the current financial, economic
and social crisis should be used to establish such relations which could be fought down only
through a supranational strong-handed government, a dictatorship. They try to find a way
out of the current situation, following the pattern of the Great Depression between 1929–
1933. At that time, the financial crisis was followed by an economic crisis, and the social
conflicts were sharpened alarmingly. Therefore, totalitarian dictatorships came to power,
which strived at the further violent concentration and centralization of power.
The signs refer to the fact that, in 2010, the goal is to put the strategy of global control
into practice. As part of this, the history-forming world power prepares to make a decisive
strike on national states and on institutions bearing national sovereignty. As early as the end
of the 1990-ies, David Rockefeller stated that there is a worldwide need for transforming the
public power exerted by states into a private power exerted by corporations, so that it could
be possible to introduce the new world order, and, as part of it, the new financial world
system. According to David Rockefeller, for this sake it is only necessary a crisis of a huge
size, which will persuade people that it is in their interest to accept voluntarily the new world
order as soon as possible.
Jacques Attali, who was advisor to French President Mitterrand, and who is also
close to President Sarkozy, is concerned that the groups of interest currently controlling the
world, the global elite, will commit the same mistake even now, that they did in 1930.
According to Attali, the global elite was not able to handle the financial problems properly.
Wars can break out again, and kill 300 million people, and only after this, the basic reforms
will follow and the establishment of a world government. He asks the question: “Shouldn’t we
better think about a world government already at this stage?”
The same was stated by Henry Kissinger: “In the final analysis, the main task is to
define and formulate the general concerns of the majority of countries, as well as of all
leading states with regard to the economic crisis, considering the collective fear of a terrorist
jihad. Next, all of that should be converted to a common action strategy… Thus, America and
its potential partners are getting a unique chance for turning the moment of the crisis into a
vision of hope.”
The openly confessed goal of the above views was to lead the mankind to accept the
new world order idea, because the universal protests against the worsening conditions of
human existence would only lead to uncontrolled chaos and anarchy. The strategists of
this world programme connect the necessity and utility of global government with the
inadmissibility of protectionism, serving the national states. They propagate that the
national-state models are hopelessly out-of-date and are not able to lead out the individual
states from the financial and economic world crisis. The strategy of the global elite is served
by such forecasts, which were issued by the WTO, the World Trade Organization. According
to it, 1.4 billion people are likely to sink below the poverty line in 2009. Similar is the
statement by the IMF Chairman Dominique Strauss-Kahn that a world economic crash is
impending unless a large-scale reform of the financial sector of the world economy is
implemented, and a crash that is most likely to bring in its wake not only social unrest but also
a war.
The plan to introduce a common world currency is also a cornerstone of the new world
order. The real masterminds of this well thought-over world strategy are as yet in the shadow.
In an article published on March 25, 2009 in Moskovsky Komsomolets, Gavril Popov, the
current President of the International Union of Economists, mentioned World Parliament,
World Government, World Armed Forces, World Police Force, World Bank, the necessity of
placing under international control the nuclear weapons, nuclear power generating capacities,
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the entire amount of space rocket technology, and the planet’s minerals. In the same article,
he urges the imposition of birth-rate limits, as well as the cleansing of humanity’s gene pool.
A new thing may be only the establishment of a worldwide totalitarian police order and the
elimination of national states, which is being suggested as an open program of action. Such
a program was earlier viewed by both the liberals, and the socialists, and the conservatives as
a form of new fascism.
According to several financial and political analysts, the 2007–2008 financial and
economic world crisis is not simply a newer financial and economic decay, but it means the
end of a whole world history epoch. That system ended, the main pillar of which was the
economic and military power of the United States. This entire epoch ends before our own
eyes. Since the main cause was the thickening and weakening of the dollar, and the general
crisis of the dollar-based money system, if the key dollar problem fails to be solved, the world
events will take a most dramatic turn. The potentially decades-long crisis of the dollar-based
money system will trigger off even a world-wide geopolitical disintegration. In such a
situation, not only social upheavals, but also open civil conflicts, revolts and civil wars can be
expected. On international level, even the division of the world into separate, adverse blocs.
Such a situation can emerge, as that one preceding World War I.
The global elite itself makes up a multiply stratified hierarchy, and consists of several
networks and structures. Its medium-level controllers, according to the signs, are not fully
aware of the well-considered and far-seeing strategy hiding behind the world crisis. The upper
level of the global elite was, nevertheless, well informed. It is them who execute the
programme of the “controlled chaos” and of the general disintegration. In all this, the
possibility of the social tension reaching even the level of civil war, as well as the planned
weakening of the constitutional order of the United States, or, if necessary, the suspending of
the constitutional order.
Part of the strategy is the establishment of such a supranational power centre, which is
suitable for the mobilization of a large-scale order-maintaining force for the sake of the
exertion of the total political, military, legal and electronic control over the population of the
world. That system uses the network management principle that allows embedding into any
society parallel structures of authority that report to external decision-making centers and are
legalized through the doctrine of prevalence of international law over national law. The shell
remains national, while real power becomes transnational. Jacques Attali called this a
“global law-based state”, which, in fact, means the legal frame of the rule of the
supranational money empire, as prime power.
According to the view of some analysts, the ruling center of the global law-based
state would be located in the United States. The passing of the 2001 Patriot Act after the
9/11 tragic events not only allowed security services to control the American population and
suspected foreigners, but also accelerated the passing of state responsibilities into the hands
of transnational corporate structures. Intelligence activities, trade of war, penitentiary
system, and information control are passing into private hands. This is done through so-called
outsourcing, a relatively new business phenomenon, which spread relatively quickly not only
in America, but also in many European and Asian countries. All this marks the building up of
the organized private power on world-scale, to the detriment of the organized public power,
the exclusive state authorities.
There is also another supposition according to which the centre of the state based on
global right would be Europe. In connection with this, a comment can be read on the
homepage http://henrymakow.com, posted on February 18, 2010. A friend from Budapest of
Henry Makow, a certain Jean D’Eau wrote the following noteworthy analysis in connection
with the financial crisis in Greece:
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Greece was chosen by the history-forming powers to play the role of the European
Union bankrupt member state in order to "create" the big problem to which the European
Union is going to "find" the "solution" soon. Greece was chosen because it symbolizes
Europe (nobody in Europe cares about countries like Hungary or Estonia) and because its
economy was relatively easy to devastate after it renounced its own currency. The European
"elites" are using Greece to persuade the flock of sheep that if the Greek problem is not fixed,
Southern Europe will go bankrupt which will trigger the collapse of the whole European
financial system and thus the bankruptcy of the whole European economy.
The "problem" is that the so-called Eurozone (where the euro currency replaced the
national currencies) is doomed to collapse since the Southern European states (as well as the
Eastern ones) cannot sustain their economy if they can't devalue their own currency in order
to boost export and tourism (they are now sucked to the euro currency.)
According to Jean D’Eau, that's the point where corrupt globalist politicians played
their important role in weakening their own economy by every means but the current "global
recession" triggered by the international bankers was the main part of the plan to bring the
Southern and Eastern European economies to a breaking point as well as to weaken the US
economy and collapse the Chinese, Indian and Russian economies. The "only solution" soon
to be proposed soon by the EU is to suppress the national fiscal and budgetary policies in
Europe and have a centralized European budget.
All European states will have to send most of their tax money to a central European
government and the national budgets will be established by this central government too. It
will mean that the European national governments will cease to exist. In parallel, the
European Union is already announcing the "necessary" creation of a big European Army to
match the predominant military power of the US in the NATO. It is especially wort the
attention what Jean D’Eau writes to Henry Makow about the members of the cast of
international bankers:
“As you already know, the international bankers are indeed mainly European bankers
(Rothschild and co.) and these are the real brains behind the man-made global recession (just
as they are behind the "global warming" scam.) Thus the European "elites" are now on the
way to becoming more powerful than the traditional US "elites". All they need is to make the
European Union a real superstate (with centralized taxation and budgetary policy) with a
real super army (the coming European Army). Then, the US "elites" will be forced to merge
the US into the EU and not the opposite as they would like. The resulting "UNION" (this is
the projected label) would be an empire ruled by the money powers whose ancestor ruled the
Khazar Empire at that time.”
What does China suggest for the solution of the financial crisis?
To our days, many Americans have realized that the economic future of their country
was squandered for the sake of the speculators of Goldman Sachs and the Wall Street, and in
the service of the careers of those politicians, who represent the Goldman Sachs and the Wall
Street in Washington. Foreign investors and creditors, primarily China, already see it clearly
that Wall Street is not operational, and it is, in fact, kept alive only by a breathing machine.
These creditors demand the radical transformation of the global financial system, and want to
get rid of the uncovered billions of dollars, which still fill up the big banks of Wall Street.
China, representing its interests more and more definitely, demands an involvement to
a ratio of at least fifty-fifty in the creation and operation of the new financial global system.
One of the preconditions of the creation of the new system is that each and every dollar,
which was produced through fraudulent, derivative speculation, must be deleted from the
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ledgers of the banks. The three main controllers of the current financial system, the Wall
Street, the FED and the government (primarily the President and the Treasury, and only in the
third place the Senate) cooperate closely. All three of them have to take it into account that
the centre of gravity of the global financial system will be transposed into China in the
following decades. The West can only slow down or even hinder this, if it places also its own
financial system and political system under the control of the public power, restores the rule
of law, and cleans these systems – including their highest levels – of the different forms of
white-collar criminality.
To some extent, this has already begun. There are signs that refer to the fact that the
100 year old rule, started in 1913, of the Federal Reserve System is getting near to its end, but
at least to its radical transformation. The size of the crisis is signaled by the fact that Henry
Paulson threatened the senators opposing to him with the suspending of the constitutional
government and the introduction of the state of emergency. In our days, it is also obvious that
the taking office of the new American President and his administration did not essentially
change the internal power relations of the American power structure, and did not terminate the
causes that triggered the crisis.
There are also informal negotiations going on between the rivaling financial groups of
interest. On these negotiations (related also by Benjamin Fulford on his website
http://benjaminfulford.net), from Chinese and Japanese part it was offered that they would be
willing to support those American billions of dollars, which were not made through
fraudulent derivative transactions, and they would be covered with the Chinese national
currency (the renminbi or the yuan) and by gold. They would also change the current name of
the dollar to Hong Kong dollar. Following this, the United States can introduce its own local
money, which may be similar to the state dollar nicknamed greenback, issued by Presidents
Lincoln or Kennedy. They are ready to negotiate about the cancellation of the external debts
of the United States, in exchange that the Pentagon would embark upon the policy of peaceful
coexistence, instead of arming. It was also discussed that both Japan and China – together
with other countries – would be willing to cooperate for the sake of restarting the production
of industrial goods in the United States, and to restore the whole of the American productive
industrial capacity, if America gives up its policy of world empire building, of aggressive
expansion.
How did the world financial system become a gambling
casino?
World Economic Forum Annual Meeting 2010, Davos
In 2010, the 39th
Annual Meeting of the World Economic Forum was held in Davos,
Switzerland, which was attended by 2500 political, financial and economic leaders, among
them 40 heads of state and government. Klaus Schwab, founder and organizer of the Forum,
is on the opinion that the works of re-planning the new financial system of the world and of
world economy will only start in the future. The World Economic Forum is officially
considered to be a place of debate of the representatives of so-called non-profit organizations.
Nevertheless, all those who meet in Davos belong to the elite of the current money rule world
order, the winners of the money capitalist order, namely to such a system, in which the
bankers control the credits and the indebtedness through the issue of the credit money
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monopolized by them. The investor banking dynasties and the financial structures created by
them – due to their privileged status – hold the taps of credit issuing in their hands. As a
result, they can split out for themselves a disproportionately big slice from the total world
wealth.
Josiah Stamp, who, in the 1920ies, was considered the second richest man of
England, and earlier was the Chairman of the Bank of England (the central bank of Great
Britain), said the following at the Commencement Address held at the University of Texas in
1927:
“Banking was conceived in iniquity and was born in sin. The Bankers own the earth.
Take it away from them, but leave them the power to create deposits, and with the flick of the
pen they will create enough deposits to buy it back again. However, take it away from them,
and all the great fortunes like mine will disappear and they ought to disappear, for
this would be a happier and better world to live in. But, if you wish to remain the slaves of
Bankers and pay the cost of your own slavery, let them continue to create deposits.”
In 2008, primarily those bankers and financial structures became the victims of the
financial world system transformed into a gambling casino and the money capitalism
degenerated into a hazardous speculation, which created this system themselves. The
unscrupulous selfishness and insatiable greed of the investing financiers, counted as the main
beneficiaries of the system, demolished the mechanism, by which these bankers can indebt
and rule over anybody else. This collapse of the structures of the interest-operated credit
money system had serious consequences on the whole of the money rule world order.
The current, money-controlled economic system, the capitalism controlled with credit
money, began in 1694, when the English central bank, the Bank of England issued for the
first time the money, which was based on debt. (Economics, the real economic science,
primarily strives at the satisfaction of needs. In this system, the money is just the mediating
agent of the economic activity. In the money rule capitalism, the system called crematistics
by Aristotle, the emphasis is not on production, but on commerce and money turnover, and
the goal is not to satisfy needs, but to create more money from money. The credit money takes
over the lead, moved by the interest mechanism. On the other hand, through the interest, the
profit of the value-producing activity flows to the money wealth owners, increased according
to a geometrical progression.) This system of the private money monopoly served well the
interests of its creators for two centuries.
Nevertheless, in 2008, this system of the money capitalism was so much shocked that
even famous experts say that it is close to the end. But not because the victims of this system
revolted and overthrew it, but because the controllers and beneficiaries of the credit money
system, due to their greed and covetousness, did not know the limits any more. They
demolished the mechanism through which the money wealth owners indebt the other actors of
the economic life: the citizens, the enterprises and the state. The truth is that those, who were
pushed into debt slavery by this indebtedness, are still ready to live as subjects of this
bankers’ rule, and continue to pay obediently the costs of their own pushing into money
slavery. Namely, they are willing to endure that the mediating agent of the economic life, the
money, will continue to be produced by these bankers from air, so that they could lend it for
huge interest to those who perform value-producing activity.
The solution would be the return from the private money system to the public money
system. The democratic public power owing political responsibility should take back the
monetary sovereign rights into state authority again. The issuing of money and the crediting
can and should be transformed into a free public service. Without this, it is not possible to
terminate the system of usury freedom, irresponsibility and selfishness and the enforcement of
the social justice.
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The World Economic Forum of Davos was founded in 1971, in the same year in which
the dollar was transformed from a banknote partly covered with precious metals into a totally
uncovered paper money. The little mountain town in the Swiss Alps is regarded, from the
point of money capitalism, the beginning of the end, where it became obvious that the paper
money of the international bankers is nothing more than a gambling built on a kind of
credulousness, where everybody loses everything in the end, including the bankers
themselves. The hazard through money issuing began in 1694, with the issuing of the
founding document of the Bank of England. It was then when this central bank, being under
private control and then getting in total private property, obtained the right of issuing money
with putting paper money into circulation. The owners of the bank stated that their banknote
is an equally solid money like the coins made of gold or silver. It was not true even at the
beginning, but this became obvious only later.
Prior to the taking over of the financial power by the Bank of England, money
changing was the trade of goldsmiths, who lent their money consisting of golden and silver
coins on interest. After 1694, these money-changers, sitting at wooden tables called “banco”
in Italian, started to be called bankers, and the wooden tables gradually became palaces and
cathedrals. The paper money set off, for the use of which they counted interest, and by this an
initial version of the money system operating today. The main business secret of the money
wealth owners and the money-issuing bankers is that they substituted the money made of
precious metals with paper money, and they calculated the interest also on this money
substitute as they did on the money made of precious metals.
In this way, the delivered credit and the interest collectable for it could grow nearly
unlimitedly. But this is not only the secret of the bankers, but of all the money capitalist
system. The essence of this is that, at the moment of issuing the credit money, those who
detain the monopoly of issuing money indebt everybody else: the entrepreneurs, the
consumers, the states. So that this system should work smoothly, the money issuing, the
sovereign right of the state, should get in the hands of a private institution, a central bank in
usually private property, but, in any case, under private control. At the moment of crediting,
the central banks produce the money from air, and deliver it to the borrower in the form of a
banknote, which can be considered a promissory note, a declaration of acknowledgement of
debts, i.e. a promise to pay. And then they give these banknotes over to the money-savers.
The accumulators of money need these securities, because, due to the continuous
inflation, they can preserve, at least partly, the value of their paper money with these
securities. Together with the paper money and the interest, the inflation also appears
necessarily. At the time of the issue of paper money, when the actors of the economic life: the
enterprises, the natural persons and the state take up credits, the money-producing creditors do
not issue also the interest in the same time. Therefore, when the credit and the interest is being
repaid, the amount of money being in circulation is reduced, which can only be supplemented
by taking up newer credits, bigger than the previous ones, and so more and more money is
being put into circulation or accumulated, what is more, in a quicker pace than the real
economy can grow. This is the basic cause, determined by the paper money system, of
inflation.
It was only in the 20th
century when the relation between the money made of precious
metals and paper money became obvious gradually, and the shortcomings of the paper money
system came to the surface. Great Britain became one of the biggest beneficiaries of this
money system, since London was the centre of this international money cartel, becoming
gradually transnational. England, which got under the hegemony of the money cartel,
maintained, to the very last, the belief according to which the paper money is as good as the
money made of precious metals. In the 20th
century – as a consequence of the two world wars
– the role of Great Britain was gradually taken over by the United States, the money system of
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which got under the hegemony of the transnational money cartel in 1913, after a century of
struggle. The private money issued by the money cartel, the FED dollar, became the official
currency of America, and then, gradually, a global currency. This brought on many
advantages for the money-wealthy American groups of interest.
Following the Great Depression, in 1933, the then President of the United States,
Franklin Delano Roosevelt, confiscated, with a decree, the gold owned by the American
citizens, what is more, at a low price established by the state. From this moment on, the
Americans did not believe any longer that the value of the paper money is the same as the
money made of precious metals, which was, allegedly, exchangeable into golden and silver
coins or golden and silver bullions. (Here we only mention the fact that, if the money of a
given country detains a coverage with precious metals, the amount of paper money cannot be
increased unlimitedly. It means that the ratio between the precious metal coverage and the
issued paper money must be kept. Thus, if we want to double the amount of the paper money
in circulation, and we want to keep the earlier measure of coverage of the paper money, also
the amount of the precious metal serving as coverage must be doubled. As a consequence, the
precious metal coverage or standard hinders the unlimited issue of paper money. The value of
the money, as a sign, is, nevertheless, determined by the thing it signifies, namely the value-
producing work and the result of it. The sign can fulfil the role of the mediating agent until the
people – economic actors, enterprises and states – trust it. Namely, the coverage with precious
metals limits only the unlimited multiplication of the sign, but is not bearing the value of the
money,)
Under the pressure of the supranational money cartel, the confiscation of gold was
later repeated also on world scale. In 1933, Roosevelt collected the gold only from the
Americans. On the other hand, in 1971, the international money cartel, making use of
America’s power, forced the whole world to do the same. Following World War II, the United
States detained the biggest gold deposits ever existing in history. The Bretton Woods Accord
was made as early as 1944. According to the agreed rules, the U.S. dollar was exchangeable
to gold anytime, and the other currencies were linked to the U.S. dollar. Thus, through the
dollar exchangeable to gold, the whole international money system was solidly connected to
the gold.
By 1971, the United States has spent all its gold reserve. In only 1958, the gold reserve
of America decreased to 10% of the previous one. This had several causes. One of them may
be that, between 1949 and 1971, many costly wars were waged, and, through the expansion of
the American large corporations, a considerable amount of dollars got to foreign states, which
could not be exchanged to gold according to the Bretton Woods Accord any more. French
President De Gaulle still managed to exchange the dollar reserve of France into gold, but
Great Britain already failed to do the same in August 1971.
Giving up the gold standard and the fixed exchange rates proved to be a decisive step
from the point of the world economy. With the fact that the gold standard of the dollar ceased
to exist, the money of all states became paper money without precious metal coverage, which
was previously covered by the dollar, fulfilling the function of the global currency. With the
termination of the gold standard, also the security disappeared with which this hazardous
gambling could be continued. From this on, only the degree of trust differentiated the piece of
paper called dollar from the other ordinary pieces of paper. Only after 1st February, 1957 they
wrote on the one dollar banknote the following: “In God we trust”. After 1971, nevertheless,
this statement got a cynical tint: the Christian Americans could believe in God, if not in
somebody else, hoping that their dollars are worth more than a piece of paper.
What caused the collapse of the money system?
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The process (which started this way and then accelerated) led, finally, to that many
trillion dollars bankruptcy, which paralyzed the financial world system, led to an economic
fallback, which surpassed even the 1933 Great Depression. The personal savings backed with
work were all invested in such state securities and bonds, which were worldwide owned by
pension funds, investment funds and insurance companies. Since the purchasing power of the
dollar, which became a mere paper money, decreased in a rapid pace, more and more people
were forced to place their savings into securities, bonds, at banks, pension institutions,
insurance companies and investment funds, and, in this way, trying to save at least a part of
the value of their savings.
All such economies, which are built upon credits supplied from uncovered money, as
well as on debt burdened with interest, are, from their nature, ab ovo instable. This economy
is at the mercy of the cycles of enlargement and shrinking, dictated by the credit money, as
well as at the mercy of the sometimes very capricious speculations of those who detain money
wealth. When the gold standard was terminated, together with this also that financial system
came to an end, which is called Fractional Reserve Banking. The essence of this is that a
part of the paper money in circulation detains a precious metal coverage. According to the
learning of the history, the passing onto a totally uncovered money leads to the collapse of the
system. Something else happened, nevertheless. The money rule capitalism started a yet
unprecedented march of triumph. The twenty-five years elapsed between 1982 and 2007
proved to be the longest expansion of the capitalism operated with credit money. The
financial crisis broken out in 2008 supports the fact that it was, at the same time, the last
successful period of the money rule world order. Namely, because this unusual boom was
achieved with virtually covered speculation money.
The credit money with virtual coverage takes the lead
In the current system of the private money monopoly, the money, as the sign serving
the mediation in the economic life, makes it possible, with the help of accounting techniques,
to account, compare and evaluate, as well as to file the different human activities. The
transnational money cartel, the owner of the global money monopoly, is only able to produce
uncovered money. This uncovered money is transformed into covered money when it is used,
as a credit, by the actors of the economic life (enterprises, natural persons and the state), and
then start to repay it with interest and compound interest. Behind the reimbursement, there is
already a coverage with work. And, in the case of debt repayment by the state, it is backed by
the tax income of the state, the coverage of which is also the value-creating work.
Nevertheless, the work-based money is connected with the productive economy. The
natural boundaries of the growth of real economy do not make it possible to multiply the
work-based money unlimitedly. Therefore, the international money cartel passed onto the
putting into operation of the betting-based money. With this, it could speed up the pace of
the production of money from money, as well as the growth of volume. At the produce
exchange, the producer can sell, say, ten tons of corn. But the person, who bought it from the
producer, can give it over in the way that he splits off the value expressed in money from this
product, and says he sells the monetary value of these ten tons of corn, which, in half a year,
will be a market value. In this case, he did not sell a product, but the purchase right connected
to the product, i.e. the option. To this option, further options can be connected, so the money,
which does not account the work, can be multiplied.
The contracting parties, the seller and the buyer, in fact, make a bet on how big the fair
market value of the product in case will be after a certain time. The mediating agent of this
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betting, as a “financial product”, is a type of money connected to it, the synthetic money. The
objects of this betting are not the stocks connected to the concrete physical product any more,
but the different packets of synthetic money. Since it is possible to make bets in the most
various forms, almost unlimitedly, also the synthetic money can be produced unlimitedly.
In the case of the credit money operated with the interest mechanism, all actors of the
economic life can only detain credit money, that is they have a debt, which must be repaid,
with interest, to the creditor. Nevertheless, due to the interest mechanism and other reasons,
not all borrower debtors can repay the loan. Therefore, there is a risk connected to all debtors:
they either repay their debt or they do not. The risk connected to a given debtor can be
measured. For this purpose, the transnational money cartel created the credit raters, whose
duty is to professionally weigh the measure of the risk, and to determine the price of credit
risk accordingly. The credit will be more expensive for the debtor qualified risky. Risk
undertaking spread more and more, and the respective credit undertaking contract was
standardized. They created a special financial device, the security called “credit default
swap”, the CDS, for this purpose.
They even thought about the possibility that the insurance and guarantee-undertaking
financial institutions could take over the non-paid credits, for a fee. The CDS started an
independent life, it could be sold and bought, used as a paying device, and even became
unlimitedly multipliable, since all borrowers have a risk. Not the CDS is a big business, but
the change of the value of the CDS over a determined period of time. On this change, it is
possible to make a bet, i.e. to make option bargains. Who thinks it over, can state that, in fact,
this is not a trading, but a betting on a future state. Here the bargain is being done with
fictitious values, and these fictitious values are accounted as quasi money. This is made
possible by the financial accounting, standardized also on global scale.
The transnational money cartel could reach, in this way, that the CDSs multiplied as
an epidemic. In 2005, already three hundred trillion such securities were in circulation in the
financial global system, degenerated into a global casino, which were only covered with such
a quasi money with a fictitious value. By 2007, the number of the CDSs already doubled, that
is it grew to six hundred trillion dollars. And, by June 2008, it reached seven hundred trillions.
This is such a big money bubble, which already has nearly nothing to do with the productive
economy – the whole of the world economy. The value of the GDP of the whole world
amounts to sixty trillion dollars. Breaking from the real facts, the growth of the money
consisting of figures synthetically produced by computers was not limited by anything any
more.
All this was completed with the fact that, within the same time, the differentiation of
the pension funds, insurance companies and savings banks administering money covered with
work and the huge financial institutions dealing with investment and speculation was
gradually terminated. By now, the actors of the money system got rid of all state control, and
are only under their own control. They unscrupulously abused their freedom that became
unlimited. They mixed the uncovered and the covered billions of dollars, and, in this way, the
money rule global elite could buy up, for itself, the majority of the productive wealth of the
world, including the main part of the former Hungarian national wealth.
The money cartel is also in command of the EU
The supra-state money cartel forced this system also on Europe. The European
Union, transformed into an imperial structure, does not detain monetary prerogatives. The
accounting device of the economic life, the euro, cannot be created by the organs of the
European Union: the Parliament, the Commission and the Council. The exertion of monetary
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rights got over the Union, in such a way that the member states and their citizens cannot
intervene in these decisions. The Treaty of Lisbon, being already in effect, stipulates that the
primary goal of the European System of Central Banks, the ESCB, is the maintaining of
price stability. The European Central Bank, the ECB, operating in Frankfurt, and the banks
of the member states cannot grant overdrafts to the community institutions, as well as to the
governments, local organs and bodies of public law of the member states, and they even
cannot buy so-called debt instruments from them.
The governments of the EU member states and the community institutions cannot
dispose of the activity of their own financial organizations. When they formulated it that
Hungary received a credit from the Union, in fact we did not take up a credit from Brussels.
We took up the credit money also from private banks, similarly as in the case of selling the
state bonds, but now the money ran through the European Central Bank, the EU Commission
and the Hungarian National Bank, as agents, and thus it was linked to severe conditions.
The European banking system is not obliged to promote the goals included in the
Treaty of Lisbon. The monetary power – the most important and biggest power in the money
rule world order – serves the trans-EU universal market economy (more exactly, the
speculation money economy). Namely, the treaty does not define what the market economy
is. It does not say anything about the relationship between the market economy and the social
policy goals of the treaty. What resources is all that about? Where is the man, the human
resource, and where are the natural resources? It does not say a word about what efficiency is
all about either. The whole is dim and can be interpreted at discretion.
Thus, the money supply, the whole of the monetary policy is concentrated in the hands
of a few people, and the real decisions are made, from the background, by the structures of the
transnational money cartel. The free market (i.e.: the speculation of the money market, more
exactly, of the money world) is considered to be more important than the equilibrated
development of the society or the economy, and the high level of employment. The whole
structure of the European Union lacks the conditions of the exertion of the monetary power.
But they are not only missing, but the treaty even forbids it that such conditions could exist in
the organizational system of the European Union. The European Union, which has introduced
the common currency, the banknotes and the coins, for more than ten years, did not create a
bank card of its own, which would perform the movement between the bank account and the
cash, or would substitute cash. In the circulation of the euro, only the American Visa and
Master Card bank cards can be used.
From all this, we can state that, in the money rule world order, the accounting system
of the division of work was distorted. It was surrendered to the synthetic money, stranger
from work and society, which further centralizes and concentrates the power. And this
synthetic money undermined in a quick pace the operation of the society based on work and
morality. The speculators, who unscrupulously hazard in the global casino, precipitated into
crisis also the world economy surrendered to them. In our days, when the operation of the
money system should almost be criticized, the re-regulation of the monetary authorities in the
European Union, nevertheless, did not take place.
The internationally standardized accounting system was also distorted. This filing
technique made it possible the rule of the synthetic money and the orgy of the hedge funds of
the depredating speculators. It was expectable that the dollar would gradually inflate, because
its quantity still surpasses many times the whole of the wealth expressible in money of the
world. The more and more accelerating thickening and depreciation of the dollar will,
expectably, pull also the euro down. It is only a question of time.
Thus, the basic question is whether a public money system or a private money
system works within a given country or on world level. The transnational money cartel does
not even want to hear about the restoration of the public money system, as well as the
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reduction, or even the termination of the authority and power of the central banks, which were
invented and spread by them. In our days, the words, expressing the essence of the money
rule, of Mayer Amschel Rothschild, the founder of the Rothschild dynasty: “Permit me to
issue and control the money of a nation, and I care not who makes its laws.”
American economist Gary North summarized in this way the essence of the Federal
Reserve System, the financial organization controlling the money system of the United
States, but being in 100% private property:
“The Federal Reserve System is not to issue money at the expense of the
administration (state). Its duty is to regulate the economic life, with the help of the money-
issuing monopoly handed over to it by the state, to the benefit of a few big banks. It has
always been its primary function. The banking system forms a cartel. And the Federal Reserve
System is the defender of this cartel and the enforcer of its interests.”
The money cartel has expropriated also the affairs of state
In addition to this, the transnational money cartel and the political elite also agreed in
the fact that the money cartel would always supply the political class with the necessary
amount of money, which would facilitate the exertion of power for it. This was advantageous
for the political elite exerting the power because it was able, in this way, to overspend without
that the extremely unpopular tax burdens should have been increased immediately. In this
way, they could defer the negative effects to the next generation, and so they could preserve
their popularity necessary for the elections. They could remain at government more easily. In
return, the political elite defended the money-issuing monopoly of the money cartel, and
assured for it the unlimited freedom of interest collecting. This is the same even at present, in
almost all countries.
Simon Johnson, a leading economist of the International Monetary Fund, wrote the
following on the 2008 collapse of the financial world system in his work titled The Quiet
Coup: “The crash has laid bare many unpleasant truths about the United States. One of the
most alarming, says a former chief economist of the International Monetary Fund, is that the
finance industry has effectively captured our government – a state of affairs that more
typically describes emerging markets, and is at the center of many emerging-market crises. If
the IMF’s staff could speak freely about the U.S., it would tell us what it tells all countries in
this situation: recovery will fail unless we break the financial oligarchy that is blocking
essential reform. And if we are to prevent a true depression, we’re running out of time.”
As we have already referred to, the situation evolved similarly in Europe. The
transnational money cartel, with the help of the governments of the given countries, gradually
took over the weakened banks and financial institutions. Although it is even more insolvent
that those banks on which it put its hands on, the money cartel can never go bankrupt, due to
the money monopoly in its hands. The encoded expression that “it is too big to go bankrupt”,
in fact, expresses that these financial structures are owned by the owners of the untouchable
international money cartel, namely those who also control the governments of the given
countries.
In order to illustrate the above, we refer to the fact that the newer debt burden, by
which the American government bailed out the bankrupt giant investment financial
institutions, increased the debt appeasing each and every American (including also the
newborns) with forty-five thousand dollars. So, in 2010, a debt burden amounting already to
three hundred forty-seven thousand dollars falls on every American. When a newborn gets
its social security card from the authorities, also gets such a big debt burden, which it will
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carry until the end of its life. As if it had to study, work and bring up children all through its
life, moaning under the weight of a heavy sack.
The bankers were forced to defence in Davos
One of the main features of the 2010 Davos meeting was that the super bankers
representing the financial system got into a defensive position. They had to agree that there
was a need for thorough reforms, that is for such drastic steps, which decrease the riskiness of
the financial industry. On the meeting, they also agreed that the interests of both the creation
of new workplaces and of the freedom of trade must be taken into account. Larry Summers,
the key economic adviser of the American President, qualified the initial signs of the
dénouement from the financial collapse and the consequent economic world crisis as nothing
else but a “statistical recovery and a human recession”.
The participants to the Davos meeting were characterized by a general uncertainty.
The leaders of global firms were somewhat more optimistic than the political leaders, but no
common standing point was created about what the economic recovery would emerge, and
whether a newer decay would precede it. They mentioned that an economic recovery is to
be expected, marked with the acronym LUV. L is the shape of the European recovery, a slow
process, requiring long time. U marks the also long-term process expectable in the United
States, and V marks the powerful and quick development, which, expectably, will take place
in the “emerging” economies of India, Brazil and China.
Of course, the representatives of the money rule world order and of the money and
corporation oligarchy were worried about the possibility that the populism and the endeavour
to protectionism could strengthen on global size. In this respect, populism means the
enforcement of the interests of the majority of the population against the particular interests of
the transnational money and corporation oligarchy, that is the interests of the inhabitants of a
given country get priority against the interests of the money rule elite. Protectionism also
means that the interests of the economic actors performing value-producing work and being
active in the production have priority against those structures of the power economy, which,
with all means, want to produce more money from money. If it is not possible otherwise, they
do it at the detriment of the productive economy and the standard of living of the population.
For the transnational money cartel, the enforcement of the free movement of the
capital is more important than any other points. This was expressed by Peter Sands,
Executive Director of Standard Chartered Bank, when he put it this way: “Free trade is
absolutely important from the point of development, and the raising of people from poverty.”
Chief leader of Deutsche Bank, Josef Ackermann, proposed that – similarly to the
regular meetings of the heads of state and government of the G20, the most developed
industrial states – it would be necessary to hold an also regular meeting of the B20, the
leaders of the twenty biggest financial and economic groups in the world. This would assure
that the voice of the leaders of the financial and economic life would be more heard when the
heads of state and government of the G20 hold their annual meeting. The G20 – i.e. the
owners and leaders of the Big Business, the global commercial banks and corporation empires
– should determine what the politicians representing the states and government should talk
about. This means that the organized private power should tell what decisions the public
power may make. In our days, the public power is already the servant of the organized private
power. Josef Ackermann only confirmed this fact when he made the proposal for the
establishment of the B20. All officials must know that, in the money rule world order, all
states and governments representing the public power are surrendered to the money rule
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global elite representing the organized private power, which is, at the same time, also the
owner of the biggest enterprises in the world.
Nevertheless, most of the arguments were about how it would be possible to
consolidate the still ailing financial global system. These arguments, nearly without
exception, led to the severe criticism of the bankers. At the beginning of the Davos meeting,
these representatives of the international money cartel still defended themselves loudly and
found those astrological sums justified, which they pocket in the form of bonuses. At the end
of the forum, nevertheless, they were forced into defensive. The chief leaders of Deutsche
Bank and Barclays Bank declared that they are willing to pay a fee of a big amount to a global
financial insurance company. This company would undertake, in the future, the bailout of the
bankrupt banks. In this way, instead of the states – the governments and the taxpayers – from
now on, the money world and the private firms would support the costs of consolidation of the
bankrupt banks.
During private discussions, these potentates of the international money world were
even shaking clubs, figuratively speaking, when they concretized how they imagine the
decrease of risk in the industry dealing with money production, first of all in the operation of
banks. In Davos, it became clear unambiguously that the decision-makers of the money rule
economy are still far from getting to an agreement on the world-scale regulation of the
financial system. For the moment, only the different possibilities of solution were outlined. It
became unambiguous that – in exchange, as a return service, for making the financial system
more secure – they want to make the credits more expensive and to limit them.
So, according to the ideas, such an insurance system would be created, which would
help, in the future, the financial institutions got in crisis. The politicians and bankers
participating to the World Economic Forum in principle supported this idea, but the
International Monetary Fund only qualified it “practical”, because, in this way, the making of
the financial system more secure could be financed from the insurance fees paid by the banks.
They find this solution more realistic than the so-called Tobin Tax, which would levy a tax
on financial transactions. Tobin, the Nobel Prize winner economist, has proposed, already
years before, the levying of this tax on global level, on money transactions with speculation
purpose. At that time, the idea was supported by Great Britain and France, but was received
coldly in the United States. In Davos, it became unambiguous that the insurance fee paid by
the financial structures is more acceptable for the transnational money cartel.
French President Nicolas Sarkozy went further than the representatives of the
transnational money cartel. He suggested that the whole of the system of money capitalism
should be reformed, limiting the size of the giant banks. In this way, a more united and
uniform and more efficient global economy should be created. Sarkozy urged that, for the
moment, the governments of the individual countries should not stop the supports serving the
stimulation of the economy. The states must take such measures, which help to recover the
productive economy, because, if these stimulating measures disappeared suddenly, we will
have to count with the newer crisis of the world economy, on an even higher level than the
previous one. Sarkozy thought that President Obama’s attempt to limit the size of the banks
could only be efficient, if it is not achieved in only one country, but in the whole financial
global system. According to the French President, this problem should also discussed within
the next annual meeting of the G20, hosted in France.
The French President also stated that the American dollar cannot be the primary
reserve currency of the world economy any more. He announced that France endeavours at
the establishment of a new international monetary system. For this sake, Sarkozy proposed,
on the pattern of the Bretton Woods system achieved in 1944, that such a summit should be
convoked, on which the participants could agree on the rules of the new financial world
system. These far-fetching ideas of the French President surprised several participants of the
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Davos meeting. Many participants received Sarkozy’s speech making a sour face, which they
qualified as being full of commonplaces and demagogic. According to them, the speech was
not properly thought over.
Here we remind the fact that, on the World Economic Forum held in Davos in
February 2009, German Chancellor Angela Merkel proposed the establishment of the
Economic Council of the UNO, in order to prevent a global financial crisis in the future. The
German Chancellor envisaged the establishment of this financial and economic body with
super authority on the pattern of the UNO Security Council, which could even make
compulsory decisions. In 2009, Merkel mentioned that the affairs belonging to the authority
of the planned Economic Council of the UNO should be included in a global economic basic
document.
As we have already mentioned, a great attention was paid to the issue of
protectionism again in Davos. A part of the participants thought that the import restriction
measures, introduced in many countries for the sake of preserving the workplaces, only
further deepen the crisis. They criticized that part of the 825 billion dollar economy-reviving
packet of the American government, according to which only American steel and iron
products can be used for infrastructural programs. The tools of protectionism are still used by
the powerful countries even in our days. The United States, Germany, France and other states
took several protectionist measures. Nevertheless, they forbid the same for the smaller and
weaker countries. The double measure was present even in this question.
George Soros, who regularly attends the Davos meetings, related to the reporter of the
CNBC (Consumer News and Business Channel) television that he finds the basic interest rates
too low. In his opinion, this may lead to such money bubbles, which may result in the outburst
of a newer financial crisis. Soros, who is counted as the most distinguished hedge fund
manager even in our days, supported his opinion saying: “When interest rates are low we
have conditions for asset bubbles to develop, and they are developing at the moment. The
ultimate asset bubble is gold.”
Gold prices last month reached a record level of just over $1,225 per ounce, having
risen around 40% last year. Investors are piling into the metal amid fears both of potential
inflation and fading faith about the stability of previously-assumed safe assets. Such are state
securities and government debts. George Soros proposed so-called imminent "exit strategies".
Due to the unprecedented support handed out to troubled banks and consumers, governments
around the world could be in danger of triggering a double-dip in the global economy.
In February 2010, Soros said: "I think that since the adjustment process to the
recession is incomplete, there is a need for additional stimulus. Some countries, like the US
and European countries, have plenty of room to increase their deficits. The political resistance
to doing so increases the chances of a double dip in the economy in 2011 and after that."
George Soros supported President Obama’s idea to divide part of the American banks grown
giant into smaller banks, but, at the same time, he thought that the suggestions concerning the
taxation of the banking system may endanger the recovery of the economy and the start of the
boom.
What is the real cause of the conflict between Jews and
Gentiles?
Ravage: “A Real Case Against the Jews”
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Zionist theoretician and publicist Marcus Eli Ravage (1884, Rumania – 1965, United
States) immigrated into the United States in 1901, and studied at several American
universities, among them at the University of Columbia. He published several articles in the
magazines Nation, New Republic and Harper. Besides this, he participated actively in the
American Jewish public life. In January and February 1928, he published, in The Century
Magazine, two writings, which stirred great sensation and are quoted even in our days. One of
them is A Real Case Against the Jews, and the other is titled The Jew: Commissary to the
Gentiles. Some researchers regard these two studies sarcastic writings, i.e. lampoons, but
those who refer to them take the message quite serious. Connecting to the latter, we present
both writings in detail, because we find their content timely even in our days.
Ravage addresses the Gentiles – the Christians, the Goy – with benevolent irony:
Of course, you do resent us. It is no good telling me you don't. So let us not waste any
time on denials and alibis. You know you do, and I know it, and we understand each other. To
be sure, some of your best friends are Jews, and all that. I have heard that before once or
twice, I think. And I know, too, – continues Ravage – that you do not include me personally
when you fling out at us in your wholesale fashion, because I am, well, so different, don't you
know, almost as good as one of yourselves. That little exemption does not, somehow, move
me to gratitude; but never mind that now. It is the aggressive, climbing, pushing, materialistic
sort you dislike – those, in a word, who remind you so much of your own up-and-coming
brethren. We understand each other perfectly. I don't hold it against you. Bless my soul, I do
not blame anybody for disliking anybody. The thing that intrigues me about this anti-Jewish
business, as you play at it, is your total lack of grit.
You are so indirect and roundabout with it, you make such fantastic and transparent
excuses, you seem to be suffering from self-consciousness so horribly, that if the performance
were not grotesque it would be irritating. It is not as if you were amateurs: you have been at it
for over fifteen centuries. Yet watching you and hearing your childish pretexts, one might get
the impression that you did not know yourselves what it is all about. You resent us, but you
cannot clearly say why. You have been piling up justifications for yourselves these many
hundreds of years and each new invention is more laughable than the last and each new
excuse contradicts and annihilates the last.
We tried to render Ravage’s style, although, necessarily, we had to abbreviate, this is
why we did not use quotation marks. Ravage remarks that, not so many years ago, the Jews
used to hear that they were money-grubbers and commercial materialists. Now (around 1928)
the complaint is being whispered around that no art and no profession is safe against Jewish
invasion.
He continues: We are, if you are to be believed, at once clannish and exclusive and
unassimilable because we won't intermarry with you, and we are also climbers and pushers
and a menace to your racial integrity. Our standard of living is so low that we create your
slums and sweated industries, and so high that we crowd you out of your best residential
sections.
We shirk our patriotic duty in wartime because we are pacifists by nature and
tradition, and we are the arch-plotters of universal wars and the chief beneficiaries of those
wars (see the late "Dearborn Independent," passim, and "The Protocols of the Elders of
Zion"). We are at once the founders and leading adherents of capitalism and the chief
perpetrators of the rebellion against capitalism. Surely, history has nothing like us for
versatility!
After this, Ravage remarks cynically: And, oh! I almost forgot the reason of reasons.
We are the stiff-necked people who never accepted Christianity, and we are the criminal
people who crucified its founder.
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After this preparation, Ravage passes on to the essence: But I tell you, you are self-
deceivers. You lack either the self-knowledge or the mettle to face the facts squarely and own
up to the truth. You resent the Jew not because, as some of you seem to think, he crucified
Jesus but because he gave him birth. Your real quarrel with us is not that we have rejected
Christianity but that we have imposed it upon you!
Your loose, contradictory charges against us are not a patch on the blackness of our
proved historic offense. You accuse us of stirring up revolution in Moscow. Suppose we
admit the charge. What of it? Compared with what Paul the Jew of Tarsus accomplished in
Rome, the Russian upheaval is a mere street brawl.
(Spreading of Jesus’ teachings is partly linked to Paul the Apostle, who was a Roman
citizen born in the town of Tarsus of the province Cilicia, and grew up in Judaism, following
the family traditions. He zealously persecuted the Christians, but then, through a personal
miracle, he converted and turned against his previous self. He joined Jesus’ disciples and
stepped among the Apostles. Paul of Tarsus is regarded the 13th
Apostle, because he was
invited by God himself, what is more, he is even called “the first after the Only One”. After
Jesus, he is the person about whom the Christians detain the most information. We can inform
about him not only from the Acts of the Apostles, but also from several epistles written by
Paul the Apostle, and which reveal directly his personality and thoughts. We know from the
Book of Luke that his original Hebrew name was Saul, and belonged to the Diaspora Jewry,
since he originated from the town of Tarsus, located between Anatolia and Syria. He got to
Jerusalem as a young man, where he studied the Mosaic law at the school of Rabbi Gamaliel.
He also learned how to make the mohair with which tents were made. Later, as a Christian
missionary, that trade became a means of support for him, avoiding in this way to burden the
local churches with his subsistence.
For Saul transformed into Paul, it was important to get to know those communities,
which confessed to be the disciples of Jesus. He learned from them the new faith, in the centre
of which stands not the Mosaic law, but the person of the crucified and resurrected Jesus,
whose important teaching was the remission of sins. As a zealous Jew, he could not accept
this teaching and he felt obliged to haunt the followers of Christ even beyond Jerusalem. It
was at around 34 AD, on the road to Damascus, when the famous event happened, during
which Saul – according to his own words – was possessed by Christ. Luke the Evangelist
reports on the details, relating how the Light of the resurrected Christ affected Paul and how it
changed all his life. In his own epistles, Paul the Apostle mentions not only the vision, but
also the revelation. He emphasizes that he became an apostle from God’s will, being called by
God. He expressly emphasizes that his conversion was not the result of his own spiritual
development, but the consequence of a divine intervention, of God’s mercy. From then on, he
rejected all that he previously considered a value, and put his life exclusively in the service of
Jesus Christ and his Gospel.
The activity of Paul the Apostle had a universal character. He saw clearly the
importance of the fact that the pagans also should get to God, who offers – through the
crucified and resurrected Christ – salvation for each and every man, irrespective of their
origin. Paul consecrated his life to make more and more people know this message and to
conciliate them with God and with each other. Paul the Apostle stood on the basis of a
universal reality, which comprised not only the Jews or a certain group of mankind, but, in a
universal mode, the whole mankind, because God is the God of all human beings. First he
went to Antioch, Syria, where he preached the Gospel to the Greeks. It was here where the
term “Christian” appeared, meaning “believer in Christ”. From Antioch, he went to Cyprus,
and then he visited Asia Minor several times. From here, he went on to Europe. Paul the
Apostle gave the highest evidence of his faith when he sacrifices his life in Rome, during the
rule of the Emperor Nero.)
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In December 2006, the Vatican communicated that, the sarcophagi of Paul the Apostle
was found in the course of the excavations made in St. Paul’s Cathedral, situated outside the
walls of Rome. Pope Benedict XVI appointed Cardinal Montezemolo the Chief Priest of the
St. Paul’s Cathedral, who made important restoration works within the cathedral. The marble
sarcophagi of St. Paul of Tarsus was found during the excavations made under the high altar,
after they moved a part of the altar raised in the honour of a martyr from the 4th
century.
In order to weigh the hypothesis of Marcus Eli Ravage, we have to mention the fact
that it was Paul the Apostle who firstly recognized that the new faith can only be viable if it is
spread not only within the Jews. For the sake of the success of the new religion, they
renounced to the requirement that the taking up of Christianity should mean, at the same time,
the acceptance of the Judaism. In other words, they did not link even the conversion to the
Christian faith to the obligatory pledge of poverty. The first Christian centres, established as a
consequence of the activity of Paul, as well as the Patriarchates of Jerusalem, Antioch,
Alexandria, Constantinople and Rome gradually strengthened and so the basis of the Christian
church was established. Following the crisis developing in the Roman Empire, the spreading
of Christianity accelerated in the third century. The new faith promised salvation, was not part
of the state power, and did not prescribe complicated rules. The command of mutual love was
in the centre of his teachings, which assured a moral elevation and self-appreciation to the
followers, cared the poor, and preached the hope of salvation. All this contributed to the quick
spreading of the Christian teachings. At the beginning, the Roman Empire did not persecute
the Christians, except for a few emperors like Caligula and Nero. The persecution of
Christians reached their climax when the religion turning against the divinization of the
emperor has already spread, but the empire was still strong enough to haunt the Chrisians, so
that this haunting should not paralyze the operation of the empire.
Under the rule of Emperor Constantine (336 – 337 AD) the persecution became
pointless, because the new religion has already integrated in the Roman society, and the
violent persecution would have endangered the survival of the empire. The crisis of the whole
Roman Empire favored the spreading of Christianity, which was only enhanced by the bloody
Christian haunting. In 313 AD, Constantine assured free practice of religion for the
Christians. The Christianity, became in this way official, had the possibility to establish its
open institutional and dogmatic system, which were adopted at the early synods. This
organizational reinforcement made it possible that Christianity became a state religion, which
happened in 391 AD, during the rule of Theodosius, the last emperor of the integral Roman
Empire. Christianity grew a viable religion and became a political factor. By its declaration a
state religion, nevertheless, the decline and the ultimate fall of the Roman Empire could not
be hindered.
Coming back to Ravage’s A Real Case Against the Jews, the Jewish theoretician goes
on saying that the Gentiles (Christians, Goy) make much noise and fury about the undue
Jewish influence in their theaters and movie industry. He considers it evident and accepts it as
well-founded. At the same time, he asks the question: But what is that compared to our
staggering influence in your churches, your schools, your laws and your governments, and the
very thoughts you think every day? Ravage refers to The Protocols of the Elders of Zion,
which, in his opinion, was forged by a clumsy Russian, but, for the sake of argument, he
admits that every word of it is true. According to the Protocols, the Jews plotted to bring on
the late World Wars. Nevertheless, he emphasizes that he regards the Protocols genuine and
authentic only for the sake of making a point for his message. His question is the following:
But what is that beside the unquestionable historical conspiracy which the Jews have
carried out, which they have never denied because the Christians (Gentiles, Goy) never had
the courage to charge the Jews with it, and of which the full record is extant for anybody to
read?
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Ravage says, verbatim, the following:
“If you really are serious when you talk of Jewish plots, may I not direct your
attention to one worth talking about? What use is it wasting words on the alleged control of
your public opinion by Jewish financiers, newspaper owners and movie magnates, when you
might as well justly accuse us of the proved control of your whole civilization by the Jewish
Gospels?
You have not begun to appreciate the real depth of our guilt. We are intruders.
We are disturbers. We are subverters. We have taken your natural world, your ideals, your
destiny, and played havoc with them. We have been at the bottom not merely of the latest
great war but of nearly all your wars, not only of the Russian but of every other major
revolution in your history. We have brought discord and confusion and frustration into your
personal and public life. We are still doing it. No one can tell how long we shall go on doing
it.
Look back a little and see what has happened. Nineteen hundred years ago you were
an innocent, carefree, pagan race. You worshipped countless gods and goddesses, the spirits
of the air, of the running streams and of the woodland. You took unblushing pride in the glory
of your naked bodies. You carved images of your gods and of the tantalizing human figure.
You delighted in the combats of the field, the arena and the battle-ground. War and slavery
were fixed institutions in your systems. Disporting yourselves on the hillsides and in the
valleys of the great outdoors, you took to speculating on the wonder and mystery of life and
laid the foundations of natural science and philosophy. Yours was a noble, sensual culture,
unirked by the prickings of a social conscience or by any sentimental questionings about
human equality. Who knows what great and glorious destiny might have been yours if we had
left you alone.
But we did not leave you alone. We took you in hand and pulled down the beautiful
and generous structure you had reared, and changed the whole course of your history. We
conquered you as no empire of yours ever subjugated Africa or Asia. And we did it all without
armies, without bullets, without blood or turmoil, without force of any kind. We did it solely
by the irresistible might of our spirit, with ideas, with propaganda.
We made you the willing and unconscious bearers of our mission to the whole world,
to the barbarous races of the earth, to the countless unborn generations. Without fully
understanding what we were doing to you, you became the agents at large of our racial
tradition, carrying our gospel to the unexplored ends of the earth.
Our tribal customs have become the core of your moral code. Our tribal laws have
furnished the basic groundwork of all your august constitutions and legal systems. Our
legends and our folk-tales are the sacred lore which you croon to your infants. Our poets
have filled your hymnals and your prayer-books. Our national history has become an
indispensable part of the learning of your pastors and priests and scholars. Our kings, our
statesmen, our prophets, our warriors are your heroes. Our ancient little country is your Holy
Land. Our national literature is your Holy Bible. What our people thought and taught has
become inextricably woven into your very speech and tradition, until no one among you can
be called educated who is not familiar with our racial heritage.
Jewish artisans and Jewish fishermen are your teachers and your saints, with
countless statues carved in their image and innumerable cathedrals raised to their memories.
A Jewish maiden is your ideal of motherhood and womanhood. A Jewish rebel-prophet is the
central figure in your religious worship. We have pulled down your idols, cast aside your
racial inheritance, and substituted for them our God and our traditions. No conquest in
history can even remotely compare with this clean sweep of our conquest over you.
How did we do it? Almost by accident. Two thousand years ago nearly, in far-off
Palestine, our religion had fallen into decay and materialism. Money-changers were in
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possession of the temple. Degenerate, selfish priests mulcted our people and grew fat. Then a
young patriot-idealist arose and went about the land calling for a revival of faith. He had no
thought of setting up a new church. Like all the prophets before him, his only aim was to
purify and revitalize the old creed. He attacked the priests and drove the money-changers
from the temple. This brought him into conflict with the established order and its supporting
pillars. The Roman authorities, who were in occupation of the country, fearing his
revolutionary agitation as a political effort to oust them, arrested him, tried him and
condemned him to death by crucifixion, a common form of execution at that time.
The followers of Jesus of Nazareth, mainly slaves and poor workmen, in their
bereavement and disappointment, turned away from the world and formed themselves into a
brotherhood of pacifist non-resisters, sharing the memory of their crucified leader and living
together communistically. They were merely a new sect in Judea, without power or
consequence, neither the first nor the last.
Only after the destruction of Jerusalem by the Romans did the new creed come into
prominence. Then a patriotic Jew named Paul or Saul conceived the idea of humbling the
Roman power by destroying the morale of its soldiery with the doctrines of love and non-
resistance preached by the little sect of Jewish Christians. He became the Apostle to the
Gentiles, he who hitherto had been one of the most active persecutors of the band. And so well
did Paul do his work that within four centuries the great empire which had subjugated
Palestine along with half of the world, was a heap of ruins. And the law which went forth
from Zion became the official religion of Rome.
This was the beginning of our dominance in your world. But it was only a beginning.
From this time forth your history is little more than a struggle for mastery between your own
old pagan spirit and our Jewish spirit. Half your wars, great and little, are religious wars,
fought over the interpretation of one thing or another in our teachings. You no sooner broke
free from your primitive religious simplicity and attempted the practice of the pagan Roman
learning than Luther armed with our gospels arose to down you and re-enthrone our
heritage. Take the three principal revolutions in modern times – the French, the American
and the Russian. What are they but the triumph of the Jewish idea of social, political and
economic justice?
And the end is still a long way off. We still dominate you. At this very moment your
churches are torn asunder by a civil war between Fundamentalists and Modernists, that is to
say between those who cling to our teachings and traditions literally and those who are
striving by slow steps to dispossess us. In Dayton, Tennessee, a Bible-bred community forbids
the teaching of your science because it conflicts with our ancient Jewish account of the origin
of life; and Mr. Bryan, the leader of the anti-Jewish Ku Klux Klan in the Democratic National
Convention, makes the supreme fight of his life in our behalf, without noticing the
contradiction. Again and again the Puritan heritage of Judea breaks out in waves of stage
censorship, Sunday blue laws and national prohibition acts. And while these things are
happening you twaddle about Jewish influence in the movies!
(Those laws were called blue laws, which were designed to restrict or ban some or all
Sunday shopping and any commercial activity. Their goal was to enforce, in this way, the
religious standards, particularly the observance of a day of worship or rest. There are no
evidence that these laws are called blue laws because originally they were printed on blue
paper. Rather, the word blue was used in the 17th century as a disparaging reference to rigid
moral codes.)
Is it any wonder you resent us? We have put a clog upon your progress. We have
imposed upon you an alien book and an alien faith which you cannot swallow or digest,
which is at cross-purposes with your native spirit, which keeps you ever-lastingly ill-at-ease,
and which you lack the spirit either to reject or to accept in full.
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Is it any wonder you resent us? We have put a clog upon your progress. We have
imposed upon you an alien book and an alien faith which you cannot swallow or digest,
which is at cross-purposes with your native spirit, which keeps you ever-lastingly ill-at-ease,
and which you lack the spirit either to reject or to accept in full.
In full, of course, you never have accepted our Christian teachings. In your hearts you
still are pagans. You still love war and graven images and strife. You still take pride in the
glory of the nude human figure. Your social conscience, in spite of all democracy and all your
social revolutions, is still a pitifully imperfect thing. We have merely divided your soul,
confused your impulses, paralyzed your desires. In the midst of battle you are obliged to kneel
down to him who commanded you to turn the other cheek, who said "Resist not evil" and
"Blessed are the peace-makers." In your lust for gain you are suddenly disturbed by a
memory from your Sunday-school days about taking no thought for the morrow. In your
industrial struggles, when you would smash a strike without compunction, you are suddenly
reminded that the poor are blessed and that men are brothers in the Fatherhood of the Lord.
And as you are about to yield to temptation, your Jewish training puts a deterrent hand on
your shoulder and dashes the brimming cup from your lips. You Christians have never
become Christianized. To that extent we have failed with you. But we have forever spoiled the
fun of paganism for you.
So why should you not resent us? If we were in your place we should probably dislike
you more cordially than you do us. But we should make no bones about telling you why. We
should not resort to subterfuges and transparent pretexts. With millions of painfully
respectable Jewish shopkeepers all about us we should not insult your intelligence and our
own honesty by talking about communism as a Jewish philosophy. And with millions of hard-
working impecunious Jewish peddlers and laborers we should not make ourselves ridiculous
by talking about international capitalism as a Jewish monopoly. No, we should go straight to
the point. We should contemplate this confused, ineffectual muddle which we call civilization,
this half-Christian half-pagan medley, and – were our places reversed – we should say to you
point-blank: ‘For this mess thanks to you, to your prophets and to your Bible.’ “
The Jew as the representative of the Gentiles
Marcus Eli Ravage published another article worth the attention, The Jew:
Commissary to the Gentiles, in the February 1928 issue of The Century Magazine. In it, he
writes that the Christians worry and complain about the Jews’ influence in their civilization.
They consider the Jews an international people, a compact minority in their midst, with
traditions, interests, aspirations and objectives distinct from their own. And they declare that
this state of affairs is a menace to their orderly development. It confuses the natural impulses
of the Christian (Gentile) society, it defeats their purposes and it muddles up their destiny.
Nevertheless, Ravage does not altogether see any danger in it, because the societies
have always been ruled by minorities. To him, it seems a matter of indifference what the
remote origin and professed creed of the governing clique is. The influence, on the other
hand, is certainly there, and it is vastly greater and more insidious than the Gentiles appear to
realize. That is what puzzles and amuses and sometimes exasperates the Jews about the
Gentiles’ game of Jew-baiting. It sounds so portentous. They go about whispering terrifyingly
of the hand of the Jew in this and that and the other thing. It makes the Jews quake. They are
conscious of the injury they did the Gentiles when they imposed upon them their alien faith
and traditions. And then, he continues:
“Suppose, we say tremblingly, you should wake up to the fact that your religion, your
education, your morals, your social, governmental and legal systems, are fundamentally of
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our making! And then you specify, and talk vaguely of Jewish financiers and Jewish motion-
picture promoters, and our terror dissolves in laughter. The Goy, we see with relief, will
never know the real blackness of our crimes.
We cannot make it out. Either you do not know or you have not the courage to charge
us with those deeds for which there is at least a shadow of evidence and which an intelligent
judge and jury could examine without impatience. Why bandy about unconvincing trifles
when you might so easily indict us for serious and provable offenses? Why throw up to us a
patent and clumsy forgery such as the Protocols of the Elders of Zion when you might as well
confront us with the Revelation of St. John? (The Book of Revelations written by John the
Apostle, in The New Testament – J. D.) Why talk about Marx and Trotski when you have
Jesus of Nazareth and Paul of Tarsus to confound us with?
You call us subverters, agitators, revolution-mongers. It is the truth, and I cower at
your discovery. It could be shown with only the slightest straining and juggling of the facts
that we have been at the bottom of all the major revolutions in your history. We undoubtedly
had a sizable finger in the Lutheran Rebellion, and it is simply a fact that we were the prime
movers in the bourgeois democratic revolutions of the century before the last, both in France
and America. If we were not, we did not know our own interests. But do you point your
accusing finger us and charge us with these heinous and recorded crimes? Not at all! You
fantastically lay at our door the recent great War and the upheaval in Russia, which have
done not only the most injury to the Jews themselves but which a school-boy could have
foreseen would have that result.
But even these plots and revolutions are as nothing compared with the great
conspiracy which we engineered at the beginning of this era and which was destined to make
the creed of a Jewish sect the religion of the Western world. The Reformation was not
designed in malice purely. It squared us with an ancient enemy and restored our Bible to its
place of honor in Christendom. The Republican revolutions of the eighteenth century freed us
of our age-long political and social disabilities. They benefited us, but they did you no harm.
On the contrary, they prospered and expanded you. You owe your preeminence in the world
to them. But the upheaval which brought Christianity into Europe was – or at least may easily
be shown to have been – planned and executed by Jews as an act of revenge against a great
Gentile state. And when you talk about Jewish conspiracies I cannot for the world understand
why you do not mention the destruction of Rome and the whole civilization of antiquity
concentrated under her banners, at the hands of Jewish Christianity.
It is unbelievable, but you Christians do not seem to know where your religion came
from, nor how, nor why. Your historians, with one great exception, do not tell you. The
documents in the case, which are part of your Bible, you chant over but do not read. We have
done our work too thoroughly; you believe our propaganda too implicitly. The coming of
Christianity is to you not an ordinary historical event growing out of other events of the time;
it is the fulfilment of a divine Jewish prophecy – with suitable amendments of your own. It did
not, as you see it, destroy a great Gentile civilization and a great Gentile empire with which
Jewry was at war; it did not plunge mankind into barbarism and darkness for a thousand
years; it came to bring salvation to the Gentile world!
Yet here, if ever, was a great subversive movement, hatched in Palestine, spread by
Jewish agitators, financed by Jewish money, taught in Jewish pamphlets and broadsides, at a
time when Jewry and Rome were in a death-struggle, and ending in the collapse of the great
Gentile empire. You do not even see it, though an intelligent child, unbefuddled by theological
magic, could tell you what it is all about after a hasty reading of the simple record. And then
you go on prattling of Jewish conspiracies and cite as instances the Great War and the
Russian Revolution! Can you wonder that we Jews have always taken your anti-Semites
rather lightly, as long as they did not resort to violence?”
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After this, Ravage refers to British historian Edward Gibbon (1737–1794), who
finished in 1788 the publication of his six-volume main work The Decline and Fall of the
Roman Empire. Gibbon, who dealt with this historical period as a historian, leant primarily on
first-hand, original documents and sources. Since he was not a clerical person, but a scientist,
he looked on the organized religions with a rather critical eye. Ravage points out that Gibbon
did not try to account for the end of a great era by inventing fatuous nonsense. He avoided
saying that the vice and degradation of Rome was caused by the decay of morals and faith in
an empire which was at that very time in the midst of its most glorious creative period.
According to Ravage, Gibbon was a race-conscious Gentile and an admirer of the
culture of the pagan West. As a historian, he had no difficulty laying his finger on the malady
that had rotted and wasted away the noble edifice of antique civilization. According to
Gibbon, Christianity – the law which went forth from Zion and the word of God from
Jerusalem – was the central cause of the decline and fall of Rome and all she represented.
Ravage thinks that Gibbon did not go far enough. He was born and died a century
before the invention of “scientific anti-Semitism”. Therefore, he left wholly out of account the
element of deliberation. He saw an alien creed sweeping out of the East and overwhelming
the fair lands of the West. It never occurred to him that it was precisely to this destructive end
that the whole scheme of salvation was dedicated. Yet the facts are plain.
At around 65 BC, Judea was a tiny kingdom off the Eastern Mediterranean. For five
centuries it has been hardly more than a geographical expression. Again and again it has been
overrun and destroyed and its population carried into exile or slavery by its powerful
neighbors. Nominally independent, it was as unstable as ever and on the edge of civil war.
The empire of the West, with her nucleus in the City Republic of Rome, while not yet
mistress of the world, was speedily heading that way. She was acknowledged the one great
military power of the time as well as the heir of Greece and the center of civilization. Then a
dispute had arisen between two brothers over the succession to the petty throne, and the
Roman general Pompey was called upon to arbitrate between the claimants. Pompey
happened to be in Damascus at that time, winding up bigger matters. With the simple
directness of a republican soldier, Pompey exiled one of the brothers, tossed the function of
chief priesthood to his rival, and abolished the kingly dignity altogether. Pompey's mediation
amounted in effect to making Judea a Roman dependency.
The Jews objected, and Rome, to conciliate them and to conform to local prejudice,
restored the royal office. She appointed, that is, a king of her own choosing. He was the son of
an excise-man, an Idumean by race, named Herod. But the Jews were not placated, and
continued making trouble. Rome thought it very ungrateful of them. (The Idumeans are a
Semite people, which settled down. in the 13th
century BC, in the region located south of the
Dead Sea, and founded a kingdom here. There were frequent hostilities between Idumeans
and Jews. After the Egyptian Captivity, their state was mentioned as Idumea. The
Hasmoneans conquered the Edomites, and then converted them to Judaism by force. Herod
the Great was born from this people.)
Jewish discontent grew to disaffection and open revolt when their Gentile masters
began importing into Jerusalem the blessings of Western culture. Graven images, athletic
games, Greek drama, and gladiatorial shows appeared. All these were not to the Jewish taste.
The pious Jews resented them as an offense in the nostrils of Jehovah, even though the
resident officials patiently explained they were meant for the entertainment and edification of
the non-Jewish garrison. The Judeans resisted with especial strenuousness the advent of the
efficient Roman tax-gatherer. Above all, they wanted back a king of their own race and their
own royal line. Among the masses the rebellion took the form of a revival of the old belief in
a Messiah, a divinely appointed savior. The word Messiah, meaning “anointed” in Hebrew,
was originally an attribute reinforcing the function of priest or king. Later it also meant the
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person himself: the king and the priest. The king – as the anointed of God – managed the fate
of God’s people. If the general situation worsened, it was not God made responsible for the
failures, and so the belief emerged that Jehovah will see for the real Messiah. Even when the
continuity between the ruling king and the expectable liberator ceased, the hope still persisted
that a Messiah, descending from the family of David, would create the Messianic empire,
Jehovah’s rule over all peoples, predicted by the prophets.
So, they expected the Messiah to redeem God’s chosen people from the foreign yoke
and make Judea supreme among the nations. Ravage mentions that claimants to the mission
were not wanting. In Galilee, one Judas led a rather formidable insurrection, which enlisted
much popular support. John, called the Baptist, operated in the Jordan country. He was
followed by another north-country man, Jesus of Nazareth. According to the article
published in The Century Magazine, all three were masters of the technique of couching
incendiary political sedition in harmless theological phrases. All three used the same signal of
revolt – “The time is at hand.” And all three were speedily apprehended and executed, both
Galileans by crucifixion.
Ravage thinks that Jesus of Nazareth was, like his predecessors, a political agitator
engaged in liberating his country from the foreign oppressor. There is even considerable
evidence that he entertained an ambition to become king of an independent Judea. He
claimed, or his biographers later claimed for him, descent from the ancient royal line of
David. But his paternity is somewhat confused. The same writers who traced the origin of his
mother's husband back to the psalmist-king Solomon, also pictured Jesus as the son of
Jehovah, and admitted that Joseph was not his father. It seems, however, that Jesus before
long realized the hopelessness of his political mission and turned his oratorical gifts and his
great popularity with the masses in quite another direction. Using modern terms, he began
preaching a primitive form of populism, socialism and pacifism.
The effect of this change in his program was to gain him the hostility of the
substantial, propertied classes, the priests and patriots generally, and to reduce his following
to the poor, the laboring mass and the slaves. After his death these lowly disciples formed
themselves into a communistic brotherhood. A sermon their late leader had once delivered
upon a hillside – the Sermon on the Mount – summed up for them the essence of his
teachings, and they made it their rule of life.
Ravage emphasizes: It was a philosophy calculated to appeal profoundly to humble
people. It comforted those who suffered here on earth with promised rewards beyond the
grave. It made virtues of the necessities of the weak. Men without hope in the future were
admonished to take no thought for the morrow. Men too helpless to resent insult or injury
were taught to resist not evil. Men condemned to lifelong drudgery and indigence were
assured of the dignity of labor and of poverty. The meek, the despised, the disinherited, the
downtrodden, were – in the hereafter – to be the elect and favored of God. The worldly, the
ambitious, the rich and powerful, were to be denied admission to heaven.
The result of Jesus' mission was a new sect in Judea. It was neither the first nor the
last. Judea, which was a fertile soil for strange creeds. The Ebionites, i.e. the Jewish
Christians – the paupers, as they called themselves – did not regard their beliefs as a new
religion. Jews they had been born, and Jews they remained. The teachings of their master
were rather in the nature of a social philosophy, an ethic of conduct, a way of life. To modern
Christians, who never tire of asking why the Jews did not accept Jesus and his teachings,
Ravage answers that for a long time none but Jews did. The fact that the whole Jewish
people did not turn Ebionites can be regarded the same as one cannot expect all Americans to
join the Unitarians or the Baptists or other sects.
To this, we can add that the Christians – coming from Jews and Proselytes converted
to Judaism – were really sticking to the Mosaic laws strictly. For instance, they practiced the
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circumcision, kept the Sabbath and the Jewish eating rules. They represented this line even in
the Jerusalem community. The arguments with Christians of pagan origin were rather sharp,
especially in the first period of Christianity. Although the Apostolic Synod tried to make
peace in this area, the Jew Christians set a bad eye on the activity of Paul the Apostle among
the pagans all the time. At the beginning, the Jew Christians were in majority, but the
Christian communities multiplying more and more on the territory of the Roman Empire soon
forced them into minority.
In the 2nd
century AD, they were still accounted as a separate group. Hitherto their
number decreased and their communities got a character of sect. From the point of the
teaching separated from Christianity, they are accounted as a not even united fraction,
mentioned as Ebionites. They rejected not only the teachings of Paul the Apostle, sticking to
the Mosaic books, but they also questioned the existence of Jesus, the Messiah, the Logos (the
Word). According to the Gospel of John, the Logos (the Word) was Jesus Christ himself. In
some contemporary philosophical systems, the Logos (the Word) was a linking hook, an
intermediary between the deity deemed good and the matter deemed bad. The Gospel of
John deemed Jesus the incarnation of this Logos (Word). Even his Gospel starts with the
sentence: “And the Word became flesh”. The attributes of the Logos (Word) listed at John the
Evangelist are the life, the light, the glory, the mercy, the truth and the completeness. In the
contemporary Gnostic philosophy and religious teaching, the above listed notions are present
also as intermediaries.
Continuing the presentation of Ravage’s second article, he exposes that in ordinary
times little attention would have been paid to the ragged brotherhood. Being slaves and
laborers for the most part, their meekness might even have been encouraged by the solider
classes. But with the country in the midst of a struggle with a huge foreign enemy, the
religious teachings promising an unworldly beatitude took on a dangerous aspect. It was a
creed of disillusion, resignation and defeat. It threatened to undermine the morale of the
nation's fighting men in time of war. This blessing of the peacemakers, this turning of the
other cheek, this non-resistance, this love your enemy, looked like a deliberate attempt to
paralyze the national will in a crisis and assure victory to the foe.
After this, Ravage finds it quite logical that the Jewish authorities began persecuting
the Ebionim. Their meetings were invaded and dispersed, their leaders were clapped into jail,
their doctrines were proscribed. It looked for awhile as if the sect would be speedily wiped
out. Then, unexpectedly, the curtain rose on a new act in the historical drama, and events took
a sudden new turn. Perhaps the bitterest foe of the sectaries was one Saul, a maker of tents. A
native of Tarsus and thus a man of some education in Greek culture, he despised the new
teachings for their unworldliness and their remoteness from life. A patriotic Jew, he dreaded
their effect on the national cause. A traveled man, versed in several languages, he was ideally
suited for the task of going about among the scattered Jewish communities to counteract the
spread of their socialistic pacifistic doctrines.
The leaders of Jewry in Jerusalem appointed him chief persecutor to the Ebionim. He
was on his way to Damascus one day to arrest a group of the sectaries when a novel idea
came to him. In the quaint phrase of the Book of Acts he saw a vision. He saw as a matter of
fact, two. He perceived, to begin with, how utterly hopeless were the chances of little Judea
winning out in an armed conflict against the greatest military power in the world. Second, and
more important, it came to him that the vagabond creed which he had been repressing might
be forged into an irresistible weapon against the formidable foe. Pacifism, non-resistance,
resignation, love, were dangerous teachings at home, among Jews. Spread among the enemy's
legions, they might break down their discipline and thus yet bring victory to Jerusalem.
Ravage thinks that Saul was probably the first man to see the possibilities of
conducting war by propaganda. He journeyed on to Damascus, and there, to the amazement
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alike of his friends and of those he had gone to suppress, he announced his conversion to the
new faith and applied for admission to the Christian brotherhood. On his return to Jerusalem
he laid his new strategy before the Elders of Zion (the Sanhedrin, or its predecessor). They
were startled to hear it. After much debate and searching of souls, it was adopted. More
resistance was offered by the leaders of the Ebionim of the capital. They were mistrustful of
his motives, and they feared that his proposal to strip the faith of its ancient Jewish
observances and practices so as to make it acceptable to Gentiles would fill the fraternity with
alien half-converts, and dilute its strength.
But, in the end, Saul won them over, too. And so Saul, the fiercest persecutor of Jesus'
followers, became Paul, the Apostle to the Gentiles. And so, incidentally, began the spread
into the pagan lands of the West, an entirely new Oriental religion. Unfortunately for Paul's
plan, the new strategy worked much too well. His revamped and rather alluring theology
made converts faster than he had dared hope, or than he even wished.
It should be kept in mind that his idea was at this stage purely defensive. He had as yet
no thought of evangelizing the world. He only hoped to discourage the enemy. With that
accomplished, and the Roman garrisons out of Palestine, Paul was prepared to call a truce.
But the slaves and oppressed of the Empire, the wretched conscripts, and the starving
proletariat of the capital itself, found as much solace in the adapted Pauline version of the
creed as the poor Jews before them had found in the original teachings of their crucified
master.
The result of this unforeseen success was to open the enemy's eyes to what was going
on in fact. Disturbing reports of insubordination among the troops began pouring into Rome
from the army chiefs in Palestine and elsewhere. Instead of giving the imperial authorities
pause, the new tactics only stiffened their determination. Rome swooped down upon
Jerusalem with fire and sword, and after a fierce siege which lasted four years, she destroyed
the nest of the agitation in 70 AD. At least she thought she had destroyed it. The historians of
the time leave us in no doubt as to the aims of Rome. They tell us that Nero sent Vespasian
and his son Titus with definite and explicit orders to annihilate Palestine and Christianity
together.
To the Romans, Christianity meant nothing more than militant Judaism, anyhow, an
interpretation which does not seem far from the facts. As to Nero's wish, Vespasian had at
least half of it realized for him. Palestine was so thoroughly annihilated that it has remained a
political ruin to this day. But Christianity was not so easily destroyed. It was only after the fall
of Jerusalem that Paul's program developed to the full. Hitherto, as I have said, his tactic had
been merely to frighten off the conqueror, in the manner of Moses plaguing the Pharaohs. He
had gone along cautiously and hesitantly, taking care not to arouse the powerful foe. He was
willing to dangle his novel weapon before the foe's nose, and let him feel its edge, but he
shrank from thrusting it in full force. Now that the worst had happened and Judea had nothing
further to lose, he flung scruples to the wind and carried the war into the enemy's country. The
goal now was nothing less than to humble Rome as she had humbled Jerusalem, to wipe her
off the map as she had wiped out Judea.
Following Ravage’s argumentation, the reader may have doubts about how he
interprets the relationship between Rome and Christianity and Rome and the Jewry. Also
Ravage feels that he has to support his idea with something else either, therefore he invites
John the Apostle, who was very close to Paul. John was more outspoken than Paul, who
spent half of his life as a prisoner in Roman jails, therefore he was obliged to deal in parable
and veiled hints. John, addressing himself to disaffected Asiatics, could afford the luxury of
plain speaking. At any rate, his “Book of Revelations”, included in the New Testament, is
called a pamphlet by Ravage and, in his opinion, is nothing else but the revelation of what is
the real meaning of the spreading of Christianity.
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Rome, fancifully called Babylon, is minutely described in the language of sputtering
hate, as the mother of harlots and abominations of the earth, as the woman drunken with the
blood of saints (Christians and Jews), as the oppressor of “peoples and multitudes and nations
and tongues” and – to remove all doubt of her identity – as “that great city which reigneth
over the kings of the earth”. An angel triumphantly cries: “Babylon the great is fallen, is
fallen”. Then follows an orgiastic picture of ruin. Commerce and industry and maritime trade
are at an end. Art and music and “the voice of the bridegroom and of the bride” are silenced.
Darkness and desolation lie like a pall upon the scene. The gentle Christian conquerors
wallow in blood up to the bridles of their horses. “Rejoice over her, thou heaven, and ye holy
apostles and prophets; for God hath avenged you on her.”
And what is the end and purpose of all this chaos and devastation? – asks Ravage.
John the Apostle is not too reticent to tell us. For he closes his pious prophecy with a vision of
the glories of the new – that is, the restored – Jerusalem. Not any allegorical fantasy, but
literally Jerusalem, the capital of a great reunited kingdom of “the twelve tribes of the
children of Israel”. Ravage finds this a plain and clear speaking, together with the fact that no
civilization could forever hold out against this kind of assault. By the year 200 AD, the efforts
of Paul and John and their successors had made such headway among all classes of Roman
society that Christianity had become the dominant cult throughout the empire.
Meantime, as Paul had shrewdly foreseen, Roman morale and discipline had quite
broken down. More and more the imperial legions, once the terror of the world and the
backbone of Western culture, went down to defeat before barbarian invaders. In the year 326
AD, the emperor Constantine, hoping to check the insidious malady, submitted to
conversion and proclaimed Christianity the official religion. It was too late. After him the
emperor Julian tried to resort once more to suppression. But neither resistance nor
concession were of any use at that time. The Roman body politic had become thoroughly
wormeaten with the spreading of the new creed started from Palestine. Paul had triumphed.
Ravage finishes his essay with the assertion that if he were an anti-Semite in search of
a credible sample of subversive Jewish conspiracy, he would interpret in the same way the
advent of a modified Jewish creed into the Western world.
Revilo P. Oliver on the causes of the success of the Christianity
Revilo Pendleton Oliver (1910–1994) was a professor of classical philology at the
University of Illinois. during World War II, as the Director of Research of a top secret
research department of the Pentagon, he saw an outstanding service for America. Revilo P.
Oliver played an important role in the conservative movement developing in the 1950-ies, and
was a regular author of the National Review edited by William Buckley. In the last years of
his life, he joined the National Alliance, a white supremacist organization, and
collaborated with the historians of the Institute for Historical Review. Oliver spoke eleven
languages, among them Sanskrit.
His posthumous work titled The Jewish Strategy was published in 2002. In its Chapter
12, the author deals with the spreading of Christianity in the Roman Empire. It is worth
reviewing some of Oliver’s argumentations, because, as an agnostic and atheist scientist, he
puts many questions in a new light. Since also our readers are partly religious and partly
agnostics or atheists, or have a neutral attitude toward the religious explanations, therefore we
cannot neglect the approximation and analysis with this view of our knowledge about
Christianity. On page 65 of his mentioned book, Oliver writes that there was no such thing as
an 'orthodox' Christianity before the last two decades of the 4th
century. Then one bunch of
Christian holy men got hold of Theodosius by explaining to him how advantageous it would
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be for him to cooperate with them. And so they were able to use the police power of the state
to repress and kill their competitors, the Arians. Flavius Theodosius or Theodosius the
Great was the emperor of the Roman Empire between 379–395. He managed to reunite the
western and the eastern part of the Empire, and so he was the last emperor of the united
Empire. After his death, the state definitively split into the Eastern and the Western Roman
Empire.
It was Theodosius, who made the Christianity based upon the Nicene Creed the
religion of the state. In 381, he bans the Arianism as a heretic teaching, and in 391 puts an
end to the practice of pagan cults, and so Christianity became the state religion. After a
year, with a decree, he shares the Western part (with the centre in Rome) and the Eastern part
(with the centre in Constantinople) of the Empire between his two sons. The Empire, in fact,
splits up in 395 AD. The Western Roman Empire is overthrown by the Germans in 476 AD,
and the Eastern Roman Empire persisted for nearly one thousand years more, under the name
of Byzantium, until the Seljuk Turks occupied Constantinople and made it, under the name of
Istanbul, the capital of the Ottoman Empire.
Aurelian, who reigned between 270–275, tried to hinder the decline of the Roman
Empire with reforms. Also Diocletian (284–305) made an attempt at the reinforcement of the
emperor’s power. He deemed himself the descendant of Jupiter, that is he considered himself
both God and man at the same time. He doubled the number of the army, raised the pay of the
soldiers, and divided the army into two parts: one of them was assigned with the defense of
the borders, while the other with the assurance of the internal order. The Senate lost its
decision-making authority, the leadership of the Empire was controlled by functionaries. For
the sake of the more efficient governing, he divided the Empire into four parts, so that a
tetrarchy ruled over the Empire: two senior co-emperors (the Augusts) and two junior co-
emperors (the Caesars). He himself was the leader of the Augusts, ruling over the Eastern
Empire. The rule of the co-emperors proved to be expensive. He introduced a new tax system,
levied the poll-tax and the land-tax, and issued a new, value-preserving gold coin.
At that time, the state religion was the cult of Jupiter and the cult of Sun God (Sol
Invictus), combined with the prosecution of Christians. The Christians were banished from
the army, but they could not be driven out totally. Following the abdication of Diocletian, a
civil war broke out, in which ultimately Constantine won. He fought his last battle at Milvius
in 312 AD. Then he saw a sign in his dream, the monogram of Jesus. He ordered that this
monogram be embroidered on the clothes of the soldiers and he won. A year later, he issued
the Edict of Milan, which decreed religious tolerance throughout the empire and declared
Christianity a free religion. He did not persecute the Christians any more and even he himself
converted to Christianity before his death. He called the First Council of Nicaea in 325 AD,
presided by him as Maximus. This Council adopted the religious dogma according to which
Jesus Christ is the Son of God. According to the teachings of Arius, preacher from
Alexandria, Jesus is not identical with God, he only looks like Him. He is not God, but a
creature. His followers, the Arians, were later declared heretics.
In the Western Roman Empire, the economy and trade continuously declined. A
scarcity of money occurred, and the situation of the urban inhabitants is so much worsened
that they started to move to the country in masses and re-organize their lives onto self-
sufficiency, subsistence farming. After this, they pay taxes in crops. The power of the big
landlords increased to such an extent that the poor peasants were placed under their
protection. The peasant offered his land to the landlord, who bought it, and then paid the so-
called “poor tax”. The barbarian invasions became stronger and stronger, which the Western
Roman Empire could not repel any more, and the barbarian settled down in masses in the
empire. Even the importance of the city of Rome decreased; after four hundred years, already
not Rome was the controlling centre any more, but the eastern Constantinople, a city which
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underwent a rapid development. The Eastern Roman Empire was governed from here. Owing
to the developing trade, the incomes grew. Large units were established both in industry and
agriculture. Due to the economic development, there was enough money for the development
of the army and the fleet, so they managed to repel the attacks of the barbarians. After the
reign of Theodosius the Great, the destiny of the Western Roman Empire was sealed. The
great migrations accelerated the fall of the empire. The Germans attacked from north (Vikings
and Normans), from east (Vandals, Goths and Gepids) and from west (Anglo-Saxons, Francs
and Goths). In 410 AD, the western Goths broke into also in Rome, robbed it, and they
received lands in exchange and assured the defense of the borders.
The Huns also arrived from Central Asia, and they expanded their empire from Lake
Aral to the Rhine. Even Byzantium paid tax for them. The most outstanding king of the Huns
was Attila (434–453), who may have had the seat in the area between the rivers Danube and
Tisza. The battle of Catalaunum took place in 451, but, at that time, already a German man
was at the head of Rome. In the same year, Attila set up against Rome, but did not occupy the
town. In 453, Attila died and the Hun Empire disintegrated. In 455, Vandals rushed at Rome,
and in 476 German chieftain Odoaker dethroned Romulus Augustulus, the last Western
Roman Emperor, and he himself became the king of Italy.
Gustav Ruhland on the disintegration of the economy of the Roman
Empire
As a result of the victory won in the 1870–1871 French–Prussian war, Chancellor Otto
von Bismarck managed to unify Germany with the leadership of Prussia. On 18th
January,
1871, in the hall of mirrors of the Versailles Palace, the German princes solemnly announced
the birth of the German Empire. The peace treaty was signed on 10th
May, 1871, in Frankfurt
on Main. Germany obtained the regions Alsace and Lorraine, and also got a war indemnity
amounting to five billion gold francs. After this, the German Empire underwent a rapid
development, but her successes did not blind Bismarck, on the contrary, they filled him with
greater and greater concern. This German statesman, who was highly appreciated also by
Henry Kissinger in his work titled Diplomacy, would have liked if his life-work, the united
Germany had persisted for a long time.
Therefore, in 1887, he asked Gustav Ruhland (1860–1914), professor of the
University of Freiburg, Switzerland, to answer the question: What caused, in world history,
the fall of high cultures and successful empires – among them the decline of the Greek culture
and the fall of the Roman Empire –, because he wanted to preserve his life-work, Germany
from this failure. Bismarck started from that practical problem that the German people has
always wanted to live so that they could produce their own food, and not to need foreign help.
In 1885, Bismarck saw that his government was forced to keep the corn prices high,
so that the corn production should be profitable at all, and the German economy should not be
at the mercy of foreign countries. “Let God give that Germany should always be in the
situation to produce the corn, her main food, at home, by herself.” But Ruhland was on the
opinion that they ought not levy corn duties in order to continuously defend the economy
from competition. Also Bismarck agreed with this, but nobody could suggest a really good
solution. This is why Ruhland got the task to find a satisfactory answer to this problem. Thus,
he returned to Germany and started a thorough research work, the results of which he planned
to publish in ten volumes. Nevertheless, only three volumes were finished until his death. His
work titled The System of the Political Economics (System der politischen Ökonomie)
contains, on one hand, the findings of and economist and money reformer searching for an
alternative, and, on the other hand, such a historian reveals for us the deep connections
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discovered by such a historian who, in fact, tried to find the way out of that civilization
deadlock, which the mankind being at crossroads in the beginning of the 21st century, at the
time of writing of the present lines, also tries to find.
As a social scientist, he did not restrict his research to the problems of agriculture, but
he also analyzed the questions of economy, finance and politics. His findings, nevertheless, do
not fit at all in the world economic views of those, who are the beneficiaries of the economic
and financial novelties carried to extreme excess. To this can be attributed also the fact that
nowadays only few people know Ruhland’s epoch-making realizations. The economic
liberalism was already on power in the time of Ruhland, and this power, ruling even in our
days, swept totally away his life-work.
Gustav Ruhland had no connection at all with national socialism, because he died on
4th
January, 1914. At the same times, he is accounted almost as a hated person among the
internationalists and globalists. The international money aristocracy, the highest money
capitalist circles and their auxiliary troops cannot stand Ruhland, and neither the
internationalist socialists and communists fall behind. All nuances of the so-called socialists
limit themselves from him, including also the chameleon greens who, as we know, get red
quite quickly, as the green tomatoes. Ruhland studied thoroughly also the writings of Marx,
and got to the final conclusion that the termination of the private property of the means of
production does not offer a universal solution, as Marx thought.
Capitalism is the system of the legalized interest and usury
Ruhland defined the capitalism completely differently than Marx, who cited a British
trade union leader in The Capital as follows:
“The capital dreads the lack of profit as nature dreads emptiness. With an appropriate
profit, the capital is brave. With a secure ten per cents, it can be applied everywhere; with
twenty per cents, it is already vivid; with fifty per cents, it is bold; with one hundred per cents,
it already crashes all human laws with its boots; for three hundred per cents, there are no
more such crimes, which it would not venture, even right the danger of being hanged.”
The terms usury and the here used interest are synonyms. Their different presentation
and interpretation is regulated in the laws surrendered to capitalism, in “the right of
capitalists”. On one hand, in a hypocrite way, they condemn the use of the term “usury”, but,
on the other hand, they declare it legal in the form of “interest”. This is done with the purpose
that the same exploiting, looting interest, under which the compound interest should be
understood, so that it should be properly imprinted in the minds of law-abiding people as an
honourable thing, and the resistance against it should be discharged. Namely, the size of the
interest plays a relatively little role. The crediting techniques elaborated for the financial
looting of private persons and public institutions reached such a perfection that the
predecessors of today’s financiers, the money changers, would only watch it with envy. They
were still driven out of the Temple of Jerusalem with a lash by Jesus. The today’s financial
managers, on the other hand, are highly respected citizens.
Ruhland interpreted the class struggle propagated by Marx as the symptom of a
disease. The gradual degeneration of capitalism appears in this disease. The periods and
degrees of development turn up in all social formations, they took place in all cultural circles,
and led to decline and disintegration in all of them. In a repeating pattern, the final phase of
these processes was that the interest system took over the rule. Marx himself never spoke of
socialism. The spreading international socialism belongs exclusively to those who willingly
refer to Marx, because they realized quickly that the Marxist transition into the communism,
as it was taught, would never be achieved.
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As a researcher striving at the essence, Ruhland did not restrict only to the
accomplishment of the original task received from Bismarck, but he also reached results
opening new ways. He studied thoroughly the history of city states, the development of world
empires and high cultures, as well as the causes of their decline. He examined and analyzed,
on the dissection table of history, the knowledge available on bygone epochs and peoples.
The basic notion of the disease and degeneration of the national economy is the
capitalism. The spirit of this ill system is the private credit money and the interest. Who really
wants to terminate this disease, cannot keep the credit money operated with interest
mechanism of the private money system as the mediating agent of the economic life. This
private money system, with the interest mechanism, strives, in all fields, to siphon over the
output of the productive economy – without counter-service – exclusively to the capital.
Nothing remains from the yield, the surplus and the output at those, who do the work. The
profit of the value-producing activity gets to the owner of the capital. Thus, Ruhland got to
the conclusion that the decisive contradiction, the determining conflict of interests is between
the capital and work.
As the scientist of the political economics, Ruhland revealed the different degrees of
the disease, and analyzed the pathological processes of the capitalist economy in the divergent
historical periods. In the period of commercial and loan capital, due to the usury rules and
the collection of compound interest, the people doing the productive work became dependant
from the capitalists detaining capital. In the period of the industrial capitalism, the
proletarization of the urban and rural middle class led to the development of the masses of
depending workers, while, in the country, to the emerging of the plutocratic landowning
system. In the money rule period, governed by the banking system and the stock exchange,
the indebting of the states and the establishment of their dependence was completed. The
money capital influenced the elections with bribery, and so it reached that the political leading
layer could legalize for itself all variants of usury methods, and that it could take the so
obtained huge interest income and profit out of the given country unlimitedly, and that it
should be fully available both at home and abroad.
The capitalists exploited all forms of parasitism. In order to survive, the real parasite
needs a host-people. And so we can meet the Jewish people, when they still were agrarians,
and the Phoenicians and Canaanites were the capitalists. After this, the Jewish merchants and
money-changers turned up in the great Greek-speaking trade areas of the antiquity. This is
why Juvenalis, the outstanding figure of the antique satirical poetry, wrote the following at
the beginning of the empire period of the Roman Empire: “It is as if the Orontes (the largest
river of Syria) had reversed into the Tiberis.”
In this way, the eastern capitalists invaded Rome and found each other. We can meet
again these eastern people in the Islamic world empire. They follow the world trade through
Portugal and Spain to the Netherlands, France, England and Germany. They take with them
everywhere their capitalist legal system, which, for centuries, can be divided into commercial
law and the legal material regulating the currency trading, the movement of exchange rates
and the operation of stock exchanges. As soon as the economic relations of the hosting guest-
people start to decline, the money-owners leave the country that was their home hereto, using
their capability to move and settle down somewhere else relatively easily, as a global people.
An irreconcilable antagonism is present between the hosting guest-people and the
parasites – and, accordingly, between capital and work. It is easy to realize what we should
mean by products created by value-creating work and products accumulated by the capital,
and which of them serve the production satisfying social needs. The capital, to a lesser or
greater extent, is that amount of goods, which satisfies the greediness for profit of the money-
owner capitalists. Those who trade and circulate the money wealth (the capitalists) are usurers
in the widest sense of the word. By usury, Gustav Ruhland means the obvious and contractual
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private appropriation of the surplus value (or value added). And, by the notion “capitalism”,
he denotes that social and economic system, in which the usurer freedom of appropriation
exists in a more or less legally regulated way.
Obviously, the capitalists strive to transform the whole of national wealth into
merchandise. The more is the amount of goods on the market, the more profit can the
capitalists reach. The prices of the goods are determined by the capitalist speculation, that is
all those techniques which are available for the money-owner groups of interest. Therefore,
the production costs and the interests of the producers and consumers are pushed into the
background at the establishment of prices.
Ruhland emphasizes that the use of the universal means of exchange called money is
really one of the great achievements of mankind. But the function of exchange should be kept.
In the course of history (and even in our days), in several cases, the value-preserving function
of money should have been kept under the strict control of the public power. Namely because
the money, being the only imperishable merchandise, detains such advantages against other
goods, which are perishable in a way or another, which, in the form of usury interest, make it
possible for the owners of capital to withdraw, in a disproportionate measure, the income
from the value-creating producers.
How did the financial and economic situation evolve in the Roman
Empire?
In Rome, there was not a proletariat that can be interpreted in Marxist terms. On the
other hand, a larger and larger social stratum and later even a social class emerged from the
debt slaves, who formerly were free Roman citizens, but got indebted, due to the money
system operated with interest. When they were not able to fulfil their debt service duties any
more, and they could not pay the interests, the Roman law allowed the creditors to push their
debtors into slavery and to behave with them as real slaves. This is similar to the situation that
can be perceived, in our days, in the so-called developed West, including North America and
the European Union, as well as in several Eurasian countries. We know about indebted
entrepreneurs, citizens, enterprises and states, which are not able to pay their debts. The
situation of these indebted millions – the measure of their dependence and defencelessness –
is more and more similar to the debt slaves of the antiquity.
It is right fearful how the forms of decline of high cultures revealed by Ruhland repeat
themselves in our days, including the fall of the Roman Empire and the disintegration of the
Spanish world empire. Ruhland relates about the continuous decrease of food production, the
shrinking of food supply, the increase, surpassing all measures, of the state debt, the
insupportable interest burdens, and the ever deepening alienation of the population. Although
we can witness similar processes even in our days, we must know that these processes do not
obey to unchangeable natural laws. All of them are the result of the rules of the game created
by men, proved to be delusions. Right for this, if we realize these regularities, it would be
possible to prevent that the processes of the decline of high cultures and of the disintegration
of empires, known from the history, should repeat. The credit money system, operated by the
interest mechanism, the consequent indebting, the taking away of the productive wealth, the
looting and pushing into debt slavery of the society are all such a circulation, which we can
stop if we study its regularities.
The circulation of the abuse of parasite power essentially shows a similar syndrome,
therefore it is practical to review it in a comprehensive way. In the case of the 22 historical
high cultures studied in detail by Gustav Ruhland, the following regularities – as repeating
phenomena – have lead to decline and disintegration:
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1. Making as much money as possible – it does not matter where, when and how –
has become a ruling guiding principle. The relations between the productive
economy and agriculture are less and less observed. The interests of commerce and
industry, as well as of the money system are determining. On the markets
determined only by the money, almost everything becomes a merchandise that can
be sold at discretion.
2. The increasing indebtedness, the freedom of collecting interest of usury type, the
spreading of leases and tenures, the termination of the independent middle class, as
well as the pauperization of those who perform productive work and the growth of
the proletarian layers become general.
3. The enrichment and the luxury consumption of a thin layer are increasing
disproportionately. In agriculture, the latifundiums, i.e. the disproportionate large
estates became dominant. The layers that do agriculture as independent owners
disappear. The peasants who lost their lands invade the towns from the country,
and leave their native places going abroad.
4. People chase the material goods, the money, becoming more and more profiteering
and unscrupulous. The general moral weakens alarmingly, the civil virtues
disappear, the corruption spreads, and, in the modern era, the election frauds
appear, as well as the continuous misleading of the public opinion in the interest of
the money rule groups of interest.
5. As a consequence of the food supply depending on import from abroad, the lean
years are more and more frequent, famines occur, and the oscillation of prices are
intensified to a great extent.
6. The state does not represent the social justice any more, but serves the greediness
to own and the goals of enrichment of the rich layers detaining money and
productive wealth. War becomes the regular form of the economic growth of the
ruling groups of interest detaining wealth.
7. In order to reconcile, in the interest of the wealthy groups of interest, the ruling
political power with the propertiless layers, the proletarians, ever increasing in
number, they start supplying aids, in mass, to the poor, from the state budget, and
create the organizations serving for the performance of public works with a
compulsory character. The state aids and the demands for public money increase in
a quick pace.
8. The state policy, representing the groups of interest that became immensely rich,
leads to trade agreements representing the interests of these ultra-rich capitalists, as
well as to colonization policy and world strategy that enforce these agreements.
War periods increase and are delayed alarmingly.
9. The discontent and unrest of the population are increasing more and more. In the
historical modern age, the anarchism, socialism and communism appear, the
institution of marriage starts to disintegrate, the growth and the number of the
population decrease, tensions of civil war occur, and the whole of the financial,
economic and social system is in a state of disintegration.
So, these are the common traits, pathological syndromes which Gustav Ruhland discovered,
as a common factor, in the 22 high cultures examined by him, and all of these had to be cured,
in a way or another, from these diseases. Ruhland found the first and most essential cause of
the decline of high cultures in the usury, i.e. in the possibility that the person who does not
produce any value, can take away, with financial techniques, the value from the person who
produced it, and store it as his own property. With getting people indebted, the credit money
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system, operated with the interest system, disintegrates the economic basis of the given
society. The leading groups of interest of the present-day capitalism also detain such a private
money monopoly, which operates with interest mechanism. The continuous wealth and
income siphoning with the interest, and the unscrupulous wealth-obtaining constraint are that
lethal disease, which destroyed the high cultures. Ruhland formulated in this way his
recommendations for that Germany, the Chancellor of which charged him with the task
needing a huge research work:
“We can summarize our whole political programme by declaring: that usury liberty
must be destroyed, behind which the following sentence hides: ‘if possible, buy cheaply and
sell as expensively as you can’.”
Those democrats do not say even a word about the existence of usury liberty, who
like to refer to human rights and political freedoms as the bases of the democracy in Western
terms. They forget the words of the well-known communist German playwright, Bertolt
Brecht: “It is easier to rob by setting up a bank than by holding up a bank clerk.”
The peoples, countries and states pushed into subjected and depending status, could do
nothing else than regain the right for self-determination of the given people, namely in the
way that the structures above states of the international money power should not have the
right to hinder the financial and social self-determination of the given people, state and
society. In the present-day circumstances, the transnational and over-state structures detain the
most important ruling tool: the private money system operated with the interest
mechanism. This is why the money cartel, consisting of super-rich investment bankers, is
interested in hindering the right of self-determination of peoples, and in surrendering them to
the imperial structures over the states, which it controls, through its informal network, and
which guarantees for it the unlimited usury freedom.
The conversion to Christianity and the switch-over to money economy (crematistics)
could undermine, together, the Roman Empire. In the western part of the empire, one of them
weakened its intellectual, spiritual and moral power, discipline and internal capacity of
resistance, while the coming to power of the trade, money flow and collection of interest in
the economic life necessarily led to the gradual decline of the productive economy, and,
ultimately, to the total collapse. The combination of the two may have proved decisive, may
have sealed the fate of the Western Roman Empire, causing the fall of it.
The social and economic teachings of the Jewish world view
In the course of history, the increasing of the scope of action of man represented the
greatest change in Jewish mentality. In antiquity, people felt that they were only at the mercy
of natural forces and thought that the world neglects them. The Old Testament changed this
situation. The essence of it is that the man is not helpless against his fate. According to the
Jewish social teaching, we are responsible for our deeds. We have to strive maximally at
preserving the human dignity and to hand over a better world to the next generations. For this,
activity and creativity is needed. Therefore, Judaism made the education a primary
religious obligation. Written literature enhanced the accumulation and transmittal of the
knowledge. The economy is based upon the accumulated intellectual capital, and is in direct
relation with the education and knowledge of a given population. The Judaic teaching
emphasizes the cooperation, which is based upon the families, the religious communities and
the schools. Without these, the Jewry living in dispersion could not have survived.
An important part of the Jewish social teaching is what we call distributive truth.
According to the Old Testament, God’s people will become mighty if keeps the
commandment of the right and just life. The Jewish equivalent of the word “right” unifies the
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notions of charity and justness, which are two different categories in the Roman Law. In a
Rechtsstaat, i.e. a state founded on the rule of law, what is rightful is due, so it cannot be
regarded charity. The Jewish teaching, however, makes charity compulsory. Nobody can
remain without the satisfaction of his basic needs. In our days, this is called social justice.
However, in the economic life, the just distribution of goods does not appear by itself, thus a
conscious intervention is necessary for the sake of the just distribution of goods.
For instance, according to the Old Testament, every seven times seven years, that
property must be given back to the poor, which they lost in the course of their indebting.
Nevertheless, Judaism embodies a double moral, because it has some rules, which apply to
everybody, and other ones, which apply only to Jews.
Christianity propagated that God created the men equal, in His own image, therefore
they have not only conscience, but also conscience about their own conscience, i.e. self-
conscience. They are such moral beings who are responsible for their deeds and for their
fellows. The Christian teaching is based upon the dignity of the individual and on private
property. It enhances the creative activity of man, but takes into account also his frailness and
human weaknesses. Due to his nature, the man is equally inclined to selfishness and to
unselfishness, to generosity, therefore he needs the private property to persist. The Christian
teaching also regards men as children of God, and, as such, they must take part in the
preservation of the world created by God and assigned to the man. The greatest challenge of
the Christian social teaching is the commandment of love. According to it, we should love
our other fellow men as ourselves. The economic system, in itself, does not urge us to love
our neighbours as ourselves. It does not create, in a spontaneous way, those circumstances,
which are suitable for the enforcement of social justice. Therefore, the Rechtsstaat must get
involved, through its institutions, in the strengthening of social sensibility.
The Old Testament on the relationship between Jews and money
The Tanakh, i.e. the Old Testament, teaches that wealth is only a tool for the man to
serve God. It prescribes: “Love the Lord your God with all your strength”, which the
Pharisees interpret “with all your wealth”. Accordingly, the wealthier a man is, the more tools
he has to love God. Thus, richness is not a final goal, but an important means, which must be
gained honestly, and not taken away from others. The Old Testament also considers work
very important, this is why it is forbidden to learn and pray only, because that who learns and
prays only, but does not work, gets isolated and does not understand the world properly.
We know also from the Old Testament that two great social revolutions took place in
the antiquity. As a result of them, the Jews lived in a different way than their neighbours.
They rejected the view according to which the goal of getting rich is to build more and more
beautiful cultic places. They put an end to the compulsory human sacrifice, as well as to the
right of revenge and reprisal. The place of this was taken by the financial compensation, by
which the development of human civilization stepped in a new period. The power of money
did not put an end to violence, it only proved to be another variant of violence. All powers can
be abused, even with the power of money.
In the antiquity, the Jews could not, or could only hardly find the appropriate relation
toward richness, as prescribed in the Bible. Jacques Attali, the first president of the London-
based European Bank for Reconstruction and Development (EBRD), writes the following
about this issue in his book The Jews, the World and the Money:
“One of the most important texts of Jewry is the speech uttered by King Solomon three
thousand years ago, at the inauguration of the Temple. According to this, the Jewish people
can only get rich if, at the same time, makes richer also others. It cannot be happy if nobody
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is happy around it, and vice versa: the non-Jews are interested in the prosperity of the people
of the Book, which prays also for them. This is the epoch in which the institution of the
“solidarity tax”, which later became Tzedakah. So, the institution of the tax was invented by
the Jews, and they formulated very important rules connected with it: the amount of the tax
should fall between ten and twenty per cent, it must be anonymous, and the whole of the
collected tax must be distributed among the poor. In spite of this, even in the era of the
Temple, the Jews went off the established road in two respects. The loans could not be repaid
in instalments, and some people started to regard enrichment as their final goal. The
punishment did not delay: the division of the people, military defeat, and, finally, the
destruction of the Temple. In the course of reconstruction, the rules were laid down in books
of law. The first Sanhedrin was created, namely a kind of supreme court, which appropriated
the jurisdiction of several little community courts.”
In his quoted book, Attali continues:
“In a strange way, Israel is much more flourishing under foreign rule than earlier,
when it was an independent kingdom. 2,300 years ago, the economic and cultural capitals of
the world were Babylon and Alexandria. Both of them could prosper only through the literate
Jewish merchants. The Jews elaborated such effective financial and commercial techniques,
which made them competitive and by which they could gain even legitimacy. Among others,
they invented the cheque, the bill of exchange and the letter of credit. However, this could not
refrain the appearance of an anti-Jew attitude in Alexandria, well before Christianity.”
“In the times preceding and following the Roman colonization, a few rich and
powerful Jewish merchants and priests became a thorn in the flesh of the prophets, who
reproached to the rich Jews mostly that they did not put their money in the service of God,
but, neglecting the Laws, lived in a big luxury. They exhibit their wealth and they collaborate
with the Romans. Such a prophet was also Jesus himself, but he did not regard richness a
tool: according to him not the richness, but the poverty takes us closer to God.”
“For the Jews, the poverty was insupportable, while for the first Christians the
richness. But, with the appearance of the New Testament and the church, the situation
gradually changed. The wealth of the community already strengthened the power of the whole
religious, church institution system. Even the church started to foster the collection of gifts,
and then made the bishop’s estates inalienable.”
“In the Middle Ages, the church forbids the collection of interest for three reasons.
One of them was – like at the Greeks – that the time is not the property of man, and it must
not be sold or make profit of. Secondly, the interest is an income gained without work.
Thirdly, the lender can get rich, which is not in the interest of the church: the believer cannot
be the beneficiary of money collection, only the church, which identifies the creditor with the
devil, since the interest means a temptation, against which all believers must struggle.”
The Rabbis replied to this measure taken by the church by summarizing all their
previous accumulated knowledge in books. The Talmud of Jerusalem appeared 1,600 years
ago, and then, two centuries later, the Talmud of Babylon. This regulated, in detail, all forms
of social life, and so also the interest and the profit. For instance, in the case of foods, the
price differential cannot be higher than one sixth. The speculation is also forbidden. If prices
rise, it is not allowed to store up the goods, but they must be sold out, so that the prices should
go down. The ban of cartels also appeared. The Talmud deals with nearly all problems of the
modern economy, including the publicity, the environment, the direct or indirect taxation, the
right for work and strike, and the inheriting or solidarity.
The gaining of ground of the Western Christianity in the Roman
Empire
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Classical philologist Revilo P. Oliver approaches this question from the standpoint of
the sociologist. He asserts that the Jesus cult existing in the Roman Empire is connected with
the Western Christianity only by a few generally accepted, but not duly proved stories. In the
second volume of his work The Decline of the West, Oswald Spengler wrote that, even in the
last period of the Roman Empire, the Orthodox Christianity was, in fact, a magical cult, and
this is why it cannot be properly understood by the Western people thinking in a Faustian
way. He also adds to this that Saint Augustine, highly esteemed by the Catholic Church,
would consider the world of thinking and faith of Saint Anselm of Canterbury, Saint
Thomas of Aquino and Luther a repugnant and incomprehensible heresy, and so would do
the other Fathers of the Church. If the Fathers of Church of the first Christians had known the
medieval Christianity, they would probably have rejected it angrily.
We have already referred to the fact that, according to Oliver, no Orthodox
Christianity existed in reality. The only historically pertinent standing point is to apply the
term “Christian” to all the sects that claimed to be followers of a Jesus entitled “Christus”.
The Jews have been waiting for God’s anointed envoy, the Messiah. The meaning of the term
“christus” is nearly totally identical with that of the term “messiah”, namely it refers to such a
person, who is a person anointed by God, and has a unique task on earth. The name of Jesus
and the denomination “christus” were connected in the 1st century A.D., and became the
central character of the Western civilization up to our days: Jesus Christ.
The followers spread about this Jesus Christ that he was executed in Judaea in the time
of Tiberius or thereabouts. When Christians become conspicuous, late in the Second Century,
most of them were Jews. It is probable that the numerous letters of Paul the Apostle, including
both those that were incorporated in the "New Testament" anthology when it was put
together. Those that were excluded for some reason, were manufactured at this time by Jews
who wanted to take in goyim on easy terms. These fabrications probably included the forged
correspondence of Seneca with Paul, which seems to have been known to Tertullian. (Quintus
Tertullian was a prolific author, the first to found the Christian literature in Latin language. He
defended fiercely the Christian faith and struggled against heresy. He is called the father of
Latin Christianity.)
The Nazarenes, whose holy book was a "Gospel According to the Hebrews", of which
fragments survive, and who spoke only Aramaic in their rites, held that only Jews by race
could be Christians, since Christ, when he returned to butcher the hated goyim, naturally
wanted only Jews to rule the world. A compromise was made by the Ebionites, who had,
inter alia, a "Gospel of Matthew" that was certainly older than the diluted rifacimento that got
into the New Testament".
In Chapter XII (p. 67) of his referred book, Oliver thinks that the Gospel preached, in
fact, a perfect communism, with all property and women to belong to everyone in
common. The Ebionites held that goyim, if they were circumcised and went through
ceremonies to purge them of their native vileness, could become only Christians second-
class.
There was another Christian sect, called after their leader, the Gnostic Carpocrates of
Alexandria. The Carpocratians seem to have been a numerous and powerful sect in their day,
and they believed in the transmigration of souls, as well as in the human nature of Jesus
Christ. With the accumulation of the experiences of the past, Jesus Christ purified, elevated
and strengthened the soul within Him on a specially high level.
The Carpocratians admitted goyim on equal terms, since Salvation was for all those
who had been 'redeemed by Christ' from servitude to man-made laws and materialism. Christ
had come to free mankind from oppression and to bestow on the righteous a new freedom.
What matters is spiritual salvation, and we must show our emancipation from material things
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by recognizing no human law whatsoever and by feeling free to indulge any lust and perform
any act to which the spirit may move us.
Oliver thinks again that, like the Ebionites, the Carpocratians preached a total
communism, with all property and women to be for the use of everyone. They admitted
women for the sake of general promiscuity in the modern manner, and although they had no
objection to homosexuality, they thus differed from some other brands of Christians, who
excluded females as "unworthy of the Kingdom of God" and practiced only male
homosexuality. There were many other Christian sects, each with its own revelations from
God via Jesus, such as the Naasenes, a Gnostic sect, who worshipped snakes as symbols and
incarnations of divine power because snakes shed their skins periodically and so are born
again and live forever. Another sect, the Adamites, believed in a vision of future, which
would make it possible to create the state of the innocents. Since they deemed the first man,
Adam, sinless, innocent, and themselves the followers of Adam, the members of the sect were
going nude in public.
According to their faith, they had been redeemed by Christ from original sin and were
thereby emancipated from all the laws of sinful man and scores of others. According to
Oliver’s opinion, the Carpocratians and similar ones were the dominant sects of Christianity
until the persecutions by the wicked pagan emperors in the Third Century made those forms
of Christianity unpopular because likely to be unhealthy. A considerable part of the tales of
the martyrs are all fiction, of course. Saint Jerome, in a letter, boasts of his skill in inventing
martyr-stories to edify the faithful. Some Roman emperors made systematic attempts to
enforce respect for law and accepted morality by trying to excise the Christian tumor on the
state. Those sects could mostly survive, which at least professed the relatively innocuous
doctrines that finally became “orthodox Christianity”.
It is a mistake calling “Gnostic” all the sects that weren't “orthodox” by standards that
were not devised before the Fourth Century. A “Gnosticism” is a religious sect that claims to
have a gnosis, a knowledge of supernatural things, revealed to them by some Savior who was
either an incarnate god or a divinely-inspired superman. Obviously, all Christian sects are
Gnostic in that sense, because they all claim to be based on revelations made by Jesus Christ,
who, in the various sects, was regarded as having been either an incarnation of a god or a man
with a special mission, inspired by the Holy Spirit. In the first four centuries A.D. the world
was full of Gnostics peddling special revelations. According to Oliver, Christ was only one of
the Saviors: others were Baruch, Gamaliel, Tat (= the Egyptian god Toth), Seth (Egyptian
god), Balaam, Ezechiel, Adam, Moses, Enoch, Marsanes, Nicotheus, Phosilampes,
Mithra, Zoroaster, Zervan, and many others.
In the early centuries of our era, the Near East was an area with chaotic relations,
where several “prophets” propagated their different articles of faith. In our part, we consider
the thesis of Marcus Eli Ravage properly funded, according to which Christianity was
originally a movement promoted and controlled by the Jews. It is noteworthy that the
Christians who tried to make their cult respectable, in the Third Century claimed that they
repudiated the Jews. One of the earliest to do this was Tertullian, a Carthaginian shyster, a
pettifogging lawyer, whose Apologeticum, a defense of Christianity, was written at the very
beginning of the Third Century. He asserts that Christianity is not a conspiracy of
revolutionaries and degenerates, as was commonly believed, and claims that it is an
association of loving brothers who have preserved the faith that the Jews forsook. In our days,
Tertullian is claimed to be “orthodox” in his early writings, but then became a Montanist
heretic, as the follower of the Phrygian bishop Montanus.
Montanus propagated about himself that the Holy Spirit dwells within him, with the
help of which he could lead people to the Christian way of life. According to Oliver, Saint
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Jerome and other saints have tampered with the facts to make Tertullian seem “orthodox” in
his early works.
Are the Christians the followers of Chrestos or Christos?
It is worth the attention what Oliver writes, in his cited work, about the name
“Christian”. He asserts that the names “Chrestus” and “Christus”, in spite of their apparent
similarity, have sharply different meanings, and it is not the same that the Christians got their
name from “Chrestiani” or “Christiani”. “Chrestus”, with the meaning “useful, serviceable,
good”, is a common Greek word and was a name frequently given to slaves of Oriental origin.
It was also commonly taken as a name by persons of the lower classes in Asia Minor. This
name was used by many even in Rome. One of them was a Jewish revolutionary agitator,
Chrestus, who was regarded as the leader of one of the big Jewish outbreaks in Rome. As we
know from Suetonius, this revolt was accompanied by rioting and outrages so gross that
Emperor Claudius ran all the Jews (except, of course, those who had bought citizenship) out
of the city.
However, they came back soon, and a few years later Rome was more crowded with
Jews than ever, and they again made themselves more obnoxious than usual. Claudius decided
they were too numerous and too deeply entrenched in the economic life of the city to be
expelled, and tried to control them by suppressing their synagogues in the city. According to
Erich Koestermann, the date of the particular outbreak of which Chrestus was the leader
is assigned to 49-50 A.D. It occurred between fourteen and fifteen years before the burning of
Rome in 64 A.D., for which Nero blamed the Chrestiani, who were certainly regarded as a
gang or rather horde of Jews. What happened to Chrestus is not known, but it is not
impossible he hid to avoid arrest, got out of Rome, and went back to Judaea, if he had been
there before. If so, he could have been arrested and executed there by the Roman authorities.
Oliver supposes that he could have been the basis on which the later myths about Jesus can be
traced back. Jesus was a very common Jewish name. Oliver also mentions that one of the
earliest Christian forgeries, known already to Tertullian and antedating most or all of the New
Testament, is a supposed letter from Pontius Pilatus describing the Crucifixion, and exists in
two versions.
Both versions of this forgery are addressed to Claudius. However, in the standard
versions the reigning emperor is Tiberius. It is hard to see why any Christians should have
seen an advantage in placing the Crucifixion so late, but it would be understandable if the
story originally concerned Chrestus and not Jesus Christ. Later on, the date was moved
farther back when it was decided that it would be better to change the name Chrestus to
Christus. Oliver thinks that the change from Chrestus to Christus would have been easy to
put over by the end of the Second Century, when the increasing itacism in Greek
pronunciation gave eta and iota the same sound in popular speech.
The word Christus, meaning “salve, ointment”, was naturally never a name given to
persons, but in contemporary Yiddish (i.e., the Jewish dialect of Greek) it was for some
reason used as an epithet applied to the Jewish kings who appear in stories in the Old
Testament. This implied that they had been “anointed” and so were legitimate. It does occur
several times in the Septuagint, the oldest Greek translation of the Bible, it thus acquired
among Jews a connotation that would have made it a logical title to be assumed by a
revolutionary agitator who claimed to be a legitimate king of the Jews and also the Messiah
whom the Jews had long been awaiting with the expectation that his supernatural powers
would enable them to butcher the hated Indo-Europeans without fear of reprisals. It is entirely
possible that there was such an agitator, distinct from Chrestus, in the time of Tiberius and
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that he was executed by the Roman governor of Judaea at that time. Nevertheless, the stories
in the New Testament contain clear vestiges of a claim to be the “King of the Jews”, which
the authors of the stories find it necessary to explain away.
In Chapter XI of his already cited book, Oliver sets forth that, in the absence of any
historical record, one can only speculate whether it was likely that there was an agitator or
thaumaturgist named Jesus in the time of Tiberius or that the whole story was reconstructed
from the career of Chrestus. At that time, Palestine was full of all kinds of special persons,
peddling miracles and revelations to the multitude, trying to call up attention and to find
followers. Anyway, Oliver finds it is nearly certain that the Chrestiani executed by Nero in 64
A.D. were a mob of Jewish revolutionaries, followers of the notorious Chrestus. There is thus
no historical evidence for the existence of Christians at so early a date. The essence is that the
term “Christian” should obviously be applied only to sects that claim to be derived from a
Christus distinct from Chrestus.
A Roman jurist, Pliny (Plinius) jr. wrote several letters to his father, and it was him
who, in 112 A.D., made the earliest historical evidence for Christians. Pliny was convinced
that they were just a bunch of ignorant and superstitious, but innoxious fanatics. Pliny was
really astonished to find no evidence that they were guilty of the crimes (such as ritual
murders) and anarchistic subversion that he naturally associated with the name. Since his is
the only historical evidence for Christians at so early a date, we have no means of knowing
whether he confused Christiani with Chrestiani whom he met in Bithynia.
Oliver – in concordance with Marcus Eli Ravage – gets to the conclusion that the Jews
were always conspiring against civilization and, in order to properly mask their strategy,
found it practical to mix Christiani with Chrestiani. The confusion that was particularly
easy because a Roman would have thought it unlikely that a group would call itself “the
people of the salve”, which is all the name would mean to anyone who was not a Jew. The
Christians, i.e. persons who claimed to be followers of a Christus, not Chrestus, did not
commit the crimes that the followers of Chrestus did. It is certain that the earliest known sects
of “Christians”, i.e. followers of one or another of the agitators named Jesus, were enemies of,
and probably conspirators against, the Graeco-Romans.
As we have already mentioned, he Nazarenes admitted only Jews, while the Ebionites
admitted also non-Jews. Nevertheless, most Christians did not understand that the goyim were
in fact admitted to the status of “whining dogs”, i.e. slaves, provided they had themselves
circumcised and obeyed their divinely-appointed masters. In exchange, they were promised
that when Jesus returned with celestial reinforcements and inflicted on the hated Greeks and
Romans all the slaughter and torment that is so enthusiastically described in the apocalypse
that was included in the New Testament. This promise, however, understandably failed to
attract large numbers of goyim, and the superstition got under way only when its doctrines
had been modified to facilitate the “conversion” of large numbers of the mongrelized
inhabitants of the once-Roman Empire.
Many of the early Christian sects disclaimed in various ways a connection with the
Jews, and it can scarcely be doubted that the anti-Jewish passages in the New Testament were
designed to facilitate competition with those sects. The Christian sect, which shrewdly made a
deal with the despots of the decaying Roman Empire, thus acquired the legal and military
power to exterminate its competitors. One of these sects was one which had assembled a
hastily collected and slovenly edited anthology of a few of the numerous gospels and called it
a “New Testament”, so that it could carry with it an “Old Testament”. According to the latter,
the Jews were the Chosen Race of the tribal deity.
This deity was impudently identified by the Jews with the Animus Mundi of Stoic
monotheism as well as with the Ahura Mazda of the Zoroastrian cult. Marcus Terentius
Varro (116 B.C.–27 B.C.) – who was not only one of the greatest poets, but also one of the
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greatest scholars of Rome – was on the opinion that Jupiter, the supreme deity of the Roman
mythology, was the spirit of the world, the Animus Mundi himself, which permeates
everything and moves the whole universe. He is the universal cause of all existing, and the
origin of the forces of nature. More explicitly, for the Romans he was the universal genius.
He comprises all the other gods and goddesses, which we can consider parts of him or
belonging to his universal powers.
Varro makes it unambiguous that he identifies this universal deity with the supreme
god of Rome, Jupiter, who had a temple in the capital. Even Saint Augustine referred to the
fact that the Romans consecrated their capital city to Jupiter, who breathed life, through his
spirit, into all existing things. In other terms, the Romans wanted that Jupiter should be
recognized as the king of gods and men, and this should be expressed by his spirit and his
throne in the capital. In this way, the centre of the life-giving deity, moving the whole
universe, was in the capital of the Roman Empire. Stepping further, Jupiter was also identified
with the god of the monotheists of the East, especially with the single God of the Jews.
So, through the Stoics, Varro arrived to the monotheist faith, which also signals a
kind of pantheism, the essence of which is that God is the totality of nature, of universe.
The pantheism identifies God with nature, and does not recognize the existence of a
supernatural God. Varro managed to harmonize this kind of pantheism with the
anthropomorphic polytheism of the Graeco-Roman world, but without Jupiter, who was the
lord of the skies for both the Greeks and the Romans, this god took care of the fate of the
Roman Empire. The identification of the god of the heavens with the Anima Mundi of the
Stoics was not a totally new idea. In fact, it can be traced back to Plato. What is, however,
new and surprising in it is that this conservative Roman scholar managed to bring down this
universal God into the capital of the empire, where he was sitting on his throne between Juno
and Minerva, and spread the teaching that he was identical with the Jehovah of the Jews, and
both of them are identical with Animus Mundi, the Spirit of the World of the Stoics.
The Mazdaism is an ancient Persian faith appeared in the 7th
century B.C., which
teaches a dualistic world view, which later, in the 5th
century B.C., melted with the teaching
of the prophet Zoroaster (Zarathustra). According to the Zoroastrianism, the world is the
field of struggle of the good, the light and the forces of the evil, of darkness. The
Zoroastrianism equally contains monotheist and dualist features. The most characteristic
feature of their divine service is the guarding of the holy Fire in the temples of fire.
Zarathustra, the founder of the religion, took away the worshipping of all gods, except Ahura
Mazda (the Lord of light and wisdom), who later was called Ohrmazd. According to the
revelation given to Zarathustra, Ahura Mazda himself created the material world together with
the man. The man is originally good, and Ahura Mazda is his helper and friend. Ahura Mazda
is accompanied by the immortal saints, who are the personal representatives of the divine
essence. This divine essence is the correct order, the good perception, the power of the
sovereigns, the divine devotion toward the man, the perfection and immortality. The
Zoroastrianism saw the origin of evil in the free will of man. During their lives, the men have
to choose between good and evil. Ahura Mazda is confronting the Holy Spirit, the Evil
Spirit, Ahriman, the powers serving the evil, the lies, the bad thoughts and the violence.
A similarity can be found between the Satan of the Judaism, that of the Christianity
originating from Judaism, and later that of the Islamic faith, as well as Angra Mainju, i.e.
Ahriman. The same can be said about the angels and the immortals. The motif of hell also
appears in both religions. Another similarity is that both the Zoroastrianism and the Judaism
think that the history has a given beginning and end. Several historians of religion assert that
this similarity can be explained with the Iranian effects on the Jews during the so-called
Babylonian captivity. However, the Zoroastrianism does not contain the original sin, playing
an important role in Judaism.
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Coming back to the reasoning of Oliver, he finds that the Christians have always used
the normal Jewish techniques of fraud and forgery. Therefore, when they concocted gospels
that purport to have been written by eyewitnesses of miraculous and impossible events. The
evidence does not permit us to affirm that Christianity was cunningly invented by the Jews as
a means of paralyzing the healthy instincts of other races. However, we can affirm that if the
Jews did set out to devise a mental poison that would eventually be lethal to our race, they
could have concocted no drug that was more efficacious in the circumstances. Thus, Oliver
does not accept the concept of Ravage, but, at the same time, reinforces that the Christianity
really played a key role in the decline and fall of the Roman Empire. It is worth citing verbatim what Oliver brings to support his position:
“I emphatically call your attention to the obvious fact that the primitive Christian
doctrine is a specific demand for the suicide of our race, which survived from the end of the
Roman Empire to the present only because our ancestors, of fresh barbarian stock, simply
ignored in practice a large part of the pernicious doctrine, especially in northern Europe
under essentially aristocratic regimes. Until the disintegration of Protestantism made it
possible for any ambitious tailor, clever confidence man, or disgruntled housewife to have
‘revelations’ and pitch the woo at lower classes to make themselves important or fleece the
suckers, the professional holy men either contented themselves with telling our people they
were ‘sinful’ or used the common devices of theologians to conceal the import of the Holy
Book.”
Oliver is sorry for the deplorable acceptance of Christianity by the Europeans, i.e. the
ignorant barbarians. All this he justified in his book, Christianity and the Survival of the West,
in 1978, to which only wants to add in his posthumous book The Jewish Strategy, published
in 2002, that he has come to the conclusion that, with only numerically insignificant
exceptions, the Christians are useless in any effort to preserve the declining white race,
sentenced to extinction. The world power, which controls America from the background,
deliberately subsidizes those TV-evangelists, called by him evangelical shamans and the
revival of menticidal superstitions by every means, including the hiring of technicians who
can pose as “scientists” and “prove”, by subtle or impudent tricks, the “truth” of the flimsiest
hoaxes and the most preposterous notions.
Let us quote again the assumptions of the classical philologist:
“The development of Christianity in all the sects of the Western world during the past
two centuries has been the progressive elimination from all of them of the elements of our
natively Aryan morality that were superimposed on the doctrine before and during the Middle
Ages to make it acceptable to our race and so a religion that could not be exported as a whole
to other races. With the progressive weakening of our racial instincts, all the cults have been
restored to conformity with the ‘primitive’ Christianity of the Holy Book.”
According to Oliver, when the Christian myths became unbelievable, they left in the
minds of even intelligent and educated men a residue, the detritus of the rejected mythology,
in the form of superstitions about “all mankind”, “human rights”, and similar figments of the
imagination that had gained currency only on the assumption that they had been decreed by an
omnipotent deity. So, in practical terms we must regard as basically Christian and religious
such irrational cults as Communism and the tangle of fancies that is called “Liberalism” and is
the most widely accepted faith among our people today. He adds that, in our days, even some
of the more intelligent “Liberals” are at last perceiving that their supposedly rational creed is
simply based on the Christian myths they have consciously rejected.
When did the misleading of the Gentile world begin?
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Israel Shamir, who, at present, lives and works in Israel, argued, in the text of his
speech written for the Rhodes Conference held between 8–12 October 2009, why it is
necessary to make a new translation of the Bible into Hebraic language, although the Bible
was originally written in Hebraic, and the first translation of it into Greek is known as
Septuaginta. In connection with the disproportionate Jewish influence, money, clannishness,
media ownership are frequently mentioned among the reasons for this. This influence is
greatest in the United States in particular and in the West in general. Shamir asserts that, since
the Jews are the guardians and keepers of a primary sacred text of Christendom, this
implication assures their extremely great influence. The true bifurcation point between the
Christian East and the Christian West is not based on their geographical location, but is
located in their choice of the primary text (aside from the New Testament). Westerners
(Catholics and Protestants) use the Old Testament they translated from the Jewish MT;
Easterners use the Greek text as the original. This is an extremely important difference.
When St Paul said that the opposites are united in Christ, he mentioned man and
woman, Jew and Hellene. Indeed, the ideal Jew and Hellene are as opposed to each other as
the ideal man and woman, and the Jewish and Hellenic texts are equally opposed to each
other. Moreover, translations from either of these texts carry the imprint of the original spirit
with them. The Hellenic spirit found its expression in the Septuagint, while the Judaic spirit
was expressed in the Masoretic Hebrew text, the MT. Christianity as a whole treads a
narrow path between its Judaic and Hellenic tendencies, which are locked in an eternal fight
like the Yin and the Yang in the Chinese Taoism. Their choice of primary text for the Old
Testament caused the Eastern churches to favour the Hellenic, and the Western the Judaic
tendency.
After this, Israel Shamir discloses that, during his recent visit to Moscow, a
charismatic spiritual guide of the Eastern Orthodox Church suggested him to make a new
translation of the Bible into Hebrew from the Greek text used by the Orthodox Church.
Translations are not machine-made neutral reproductions; they carry with them the twin loads
of the original culture and of the translator’s culture. The Orthodox spiritual leader, in
essence, wanted a translation of the Septuagint into Hebrew to be made, which reconstructs
the H70, i.e. the Hebrew original of the Greek Old Testament, using the text made in 1751 of
the Queen Elizabeth Bible, namely a translation into the Old Church Slavonic of the
translation into English of the Greek text. If accomplished, this could begin the reversal of a
long-term Judaisation and degradation process of the Bible used today, and start the healing of
the schism between the West and the East.
At the same time, this would help the Jews to overcome their hubris and to make
peace with the nations. The Jews have translated the Bible into the languages of the nations in
order to influence them. The world is indebted to them, and it's time to pay them back by
giving them the true original Hebrew text of the Old Testament, free from censorship and
later additions, just as it was read in the days of the Second Temple. Why would this bookish
project influence the real world? Sacred matters influence our world far more than is
acceptable to admit in polite society. The dummies believe that all things are done out of
pecuniary considerations, but in truth, it is spiritual authority that decides. The world based on
the Jewish Bible is not the same as would be a world based on the Greek Bible. Its priorities
would be different. Even the texts themselves are different. The Hebrew text used today by
Jews (and by tiny communities of Hebrew-speaking Christians), usually called MT
(Masoretic text) is not the same text that was read by Christ and His apostles. (The Hebrew
word mesorah refers to the transmission of the tradition to descendents, the next generations.
The term Masoretic means the traditional interpretation and precise spelling of the Hebrew
text of the Bible.)
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If you open the New Testament you’ll see that its references to the Old Testament do
not fit. This does not mean that the translators of King James, or any other translators of the
Old Testament, made a mistake. They translated correctly, but from the wrong version, from
the MT, while Jesus, His apostles and the New Testament writers in general had read and
quoted the Septuagint (LXX) or its Hebrew Source (H70). According to Shamir, the
transposition of the MT in place of the Septuagint (LXX) or its Hebrew Source (H70),
making it the source for all subsequent Western translations, was the biggest coup the Jewish
scholars ever pulled off. This is the deep-lying cause of Judaisation of the West.
The MT is not particularly old. The oldest complete manuscript of the MT, the St.
Petersburg Codex (1008), is just over a thousand years old. The Septuagint (LXX) is much,
much older. The LXX translation was created in a very different era – not only before Christ,
but even before the Maccabee revolt. In 330 B.C., the people of Israel still cheered
Alexander the Great as a liberator. His successors, the Ptolemaides and the Seleukides
oppressed the country more and more. They banned the reading of the Torah, the practice of
the Jewish customs, and they enforced the Hellenized Greek way of life, therefore, in 167
B.C., a revolt broke out. At first, they managed to drive out the troops sent for the suppress
the revolt, but, ultimately, a guerrilla war started, led by Judah Maccabee. Three years later,
in December 164 B.C., they reconquested Jerusalem. After long-lasting struggles, Simon, the
brother of Judah Maccabee, gained the title of king and highest priest, and funded a new
dynasty.
In those days of the Maccabean revolt, in the third century BC, the Hellenistic world
embraced Palestine, Egypt, Syria and their neighbours. The Jews were integrating well into
this Hellenic world, and the long struggle between the two spirits of the ancient faith of Israel
had just started. One was the inward-looking nationalist exclusivist spirit. It claimed private
ownership over the Divine Law and exclusive access to the Creator for the Chosen of Israel.
A stranger reading the Law was to be executed. A translation of the Bible into Greek was a
most serious sin, equivalent to fashioning a golden calf.
The other spirit proclaimed universality and led to Christ. The Law and God’s mercy
were to be given to all. Shamir adds to this that, in modern terms, these are the spirits of
privatisation and nationalisation. The battle was fought in the three seats of ancient wisdom:
Alexandria, Babylon and Jerusalem. Alexandria was the most universalistic, Babylon the
most proprietary – Jerusalem was their battleground. In Alexandria, a happy synthesis of
Jewish and Hellenic ideas was reached in the translation of Seventy Elders appointed by the
High Priest.
Thus came the revelation of Israel to the world, preparing the way for Jesus Christ.
This translation was nothing short of miraculous. The translators consisted of six from each
tribe of Israel, making altogether seventy-two. But the translation is called the Translation of
the Seventy because seventy is the numeric value of “Sod” – “Secret” in Hebrew. The
Seventy revealed the secret that the exclusivist Jews did not want to share. “A curse upon him
who reveals our secret to the Gentiles”, they had written on the floor of the En-Gedi
Synagogue. Even the Talmud says: “do not disclose our secret to Gentiles”. Furious at the
disclosure of the secret, the exclusivist Jews destroyed the Hebrew Source of the Septuagint.
Every single copy perished. In Jerusalem, the nationalist Jews slaughtered the Hellenised
proto-Christian Jews in the Maccabean revolt.
With the coming of Christ, the free Judeo-Hellenic spirit once again found its
expression which was hated by the nationalists, who embarked on the long road to regaining
full control over the Scripture. For hundreds of years, the scribes worked over the Old
Testament, taking advantage of its ambiguous consonant readings, until they eventually
achieved a text we know today. Its main paradigm was changed: if the old text led to Christ,
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the personal/universal Saviour, the new text implanted the nationalist concept of a messiah of
and for the people of Israel, the Saviour predicted by the prophets of the Old Testament.
The nations of the world were to be seen as sinful semi-animals who had no access to
God. The name “Jews” stuck with this small fanatic band, while the Hellenised Jews became
known as “Christians” and were no longer called “Jews”. What was previously a battle
between two schools of thought within the Judaic framework, became known as the battle
between Judaic and Christian spirits. The exclusivist Jews could not destroy the Septuagint –
there were too many copies extant among non-Jews, and the LXX had been spread around
and had succeeded in bringing the nations to Christ. That is why, in their attempt to force the
genie of free spirit back into its bottle, the Jews made - one after another - three translations of
the Old Testament into Greek to counter the LXX. These translations were made from their
proto-Masoretic (original) version, and were quite tendentious. “The Virgin” in the prophecy
became “a young woman” in their rendering. Since then, the Jews have made and/or
influenced dozens of translations into all languages, while ferociously defending their own
Hebrew version, the MT, as the only legitimate primary source.
At the beginning, the young Christian church had not worried overmuch, as they
considered Hebrew only a language of the scribes, whilst cultured people used Greek, and the
local masses spoke Aramaic. The Church dismissed the Hebrew version as an empty cocoon
shed by a beautiful butterfly. The Greek LXX was considered the God-inspired text, and on
its basis, the New Testament and the works of the Fathers of the Church were created. The
Eastern Orthodox Church still prefers the Septuagint to the MT, for the translation of the
Seventy Elders had been kept in the Church and by the Church, whereas the Hebrew text had
been kept and prepared by anti-Christian forces.
When later Christian scholars became interested in the Old Testament, and compared
the Judaic translations with the LXX, they unavoidably resorted to the Jewish Bible, for by
that time the Jews had the edited Hebrew manuscripts and tools for their interpretation. As the
H70, the old Hebrew Source of the Septuagint had been destroyed by the nationalists, a great
scholar writing in Greek, Origen, qualified heretic by the synod later, therefore turned to the
Jews for advice, in order to understand the texts better. The Jews gave him plenty of advice –
only their advice was based on their understanding of their text. Origen decided to improve
the Septuagint and emended the LXX according to the Jewish Bible of his day. Some of these
emendations made their way into the body of the LXX. Still, the Eastern Church remained
rather safe, for the Septuagint remained the official version of the Old Testament for the
Greek-speaking East from Constantinople to Alexandria.
But the West did not read Greek. For a long while, the West used the Old Latin
translations from the Septuagint. However, the translations were weak. Eventually St Jerome,
a wonderful man and a great scholar, who lived for 34 years in Palestine, decided to correct
the Old Latin translations and update them. He even began his work using the Septuagint.
Afterwards, though, he followed Origen and turned to the Jews for their advice and
interpretation. That was his undoing. He got carried away, and took the fateful step that made
the West susceptible to Jewish influence. He parted with LXX and made a brand new
translation into Latin – from the Hebrew Bible of his day, the proto-MT. The Jews surely
liked the result, but St Augustine was shocked by this deed, and wrote in The City of God:
„Although the Jews acknowledge this very learned labour [of Jerome translating the
Old Testament from the Hebrew] to be fruitful, while they contend that the Seventy translators
have erred in many places, still the churches of Christ judge that no one should be preferred
to the authority of [the Seventy], and we ought to believe that the prophetic gift is with [the
Seventy].”
Contemporaries condemned Jerome, as they noticed that he slowly began to appear
more and more Jewish in his positions as he got older and his Jewish friends began to have
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more influence. One of his former friends, Rufinus, publicly attacked Jerome's Jewish
leanings. Jerome, in response to the attacks, wrote in his own Apology: "There is nothing to
blame in my getting the help of a Jew in translating from the Hebrew." He said that he “did
not understand how Jewish interpretations here and there would undermine the faith of
Christians.” According to Israel Shamir, in this way the Jews managed to plant the seed that
would eventually blossom into the acceptance of the Hebrew MT and the virtual abolition of
the Greek Septuagint, the authentic Christian Scriptures of Christ and His Apostles.
A reason why Jerome, and Origen before him, accepted the Jewish version was their
lack of historical perspective. For Origen and Jerome, the Old Testament was the Old
Testament, and the Jews were the Jews. They did not understand that the Hebrew text of the
Old Testament had been changed several times since the days of Ptolemy II
Philadelphus, when the Septuagint was produced. Some of these changes were tendentious,
others were due to scribal errors, and still others were the result of misunderstanding. Origen
and Jerome believed the myth about careful Jewish stewardship of the OT scrolls. They did
not know that the Jews had destroyed the manuscripts of other types. The Church had no such
practice at Jerome’s time. Jerome planted the seed of Jewish influence, and it had made its
major inroads by the Ninth century, when the Vulgate of Jerome (the Latin translation of the
Bible accepted by the Catholic Church as authentic) became universally accepted.
Still, the Old Testament was not widely read – Latin was not universally understood
and its influence remained somewhat limited – that is, until the Protestants began to spread
their translations of the Old Testament in the vernacular. The immediate result can be likened
to an outbreak of a long-sleeping disease. Previously unheard-of devastation and massacres of
civilians during the Thirty Years’ War (1618–1648) were influenced by spread of the MT-
based vernacular translations, as the nations were infected by its exclusivist nationalist spirit
unknown in Europe until that time. The King James Bible was translated from the MT in
order to correct the mistakes found by the Puritans, had an amazing result. The Brits began to
consider themselves a racial new Israel of the flesh, as opposed to the Church being
regarded the New Israel of the spirit.
These fanatic Christians fought the Church, and inflicted the ethnic cleansing
prescribed in the book of Joshua on their colonies in the New World, in America. They
privatised the commons and turned ordinary British people into paupers. The German Bible
translated from the MT turned the Germans into ferocious nationalists and eventually
prepared the ground for Hitler. Thus, the MT and its translations had an enormous, even
magical, effect. The Jews became the collective Merlin behind the throne of a British King
Arthur. Merlin was a Druid seer or prophet, endowed with magic power, whom was also
thought to be a wizard. People dissatisfied with this pre-eminence of the Jews left Christianity
for various heathen cults, or became engrossed with the material side of the world. The
Judaisation of the West and the degradation of its spirit accelerated.
Shamir sees that the translation battle continues even today, as unabatedly and as one-
sidedly as ever. The Jews produce dozens of translations into many languages, each more
Judaic than the last. Some are openly Jewish, like the Jewish Publication Society Bible,
others are masked crypto-Jewish or “Christian-Zionist”, like the Scofield Reference Bible
that reduces the Christian faith to “love of Jews and of the Jewish state”. (By the way,
Scofield was financed by the same super-rich investment banker, Jacob Schiff of New York,
who, on the basis of the information supplied by his own son, gave 20 million [in current
value two billion] dollars to Trotsky for the goals of the Bolshevik revolution.) Shamir thinks
that this long, hard work on these corrosive translations is the real Conspiracy of the Elders of
Zion.
After this, Shamir passes to the situation in Russia. He sets forth that Russia was the
latest to submit to the Judaising influence of the MT translation. Until the late 19th
century,
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the Russians were exposed only to the QEB, the Old Slavonic translation from the Septuagint,
and they were pious, religious, loyal to the throne. In the late 19th
century, the pro-British
Masonic Bible Society had published a translation of the MT into the Russian vernacular.
Very soon, the Jewish influence in Russia began to rise. However, the Russian Church did not
accept this Judaised Russian Bible for liturgical purposes, and continues to pray and read from
the QEB. This caused a tragic rift between the LXX-orientated Church and MT-induced
reading public. This conflict came to forefront with the Bolshevik revolution. Shamir adds
another personal disclosure, when he relates about the fact that, as an ex-Jew who was
received into the Greek Orthodox Church of Jerusalem, he is acutely and personally aware of
the continuous struggle of these two spirits in the world. He himself would like to know: Will
the Christian world submit to Judaisation, or will the Jews accept Christ?
He had the occasion, in a church in the Holy Land, to see a Bible in Hebrew published
by a Christian society for the purpose of bringing the Jews to Christ. However, the Old
Testament had been reproduced from the MT. If a Jew sees that Christians actually use the
Jewish text prepared by anti-Christian Jewish Rabbis, how can he ever accept the Christian
interpretation? Shamir thinks that the encounter of Jews and Christians should bring Jews to
the Church, not lead to Christians leaving the Church in dismay. Proselytising efforts usually
fail because the Jews consider themselves the guardians of the Scripture.
Finally, Shamir measures what advantage would the reconstruction of the Hebrew OT
according to the LXX would bring. He is convinced that a truly Christian Hebrew Bible has
now become a distinct possibility. The H70, the Hebrew Source of the LXX, can be
reconstructed on the basis of the textological discoveries of the last hundred years, with the
help of the Qumran scrolls. Shamir intends to do this work. Such a publication could become
the turning point in this millennial struggle. We do not know whether Shamir is right saying if
this project had been attempted by the young Church in the second century, the Jewish
influence today would be the same as the Samaritan one – negligible.
Shamir wonders why the Queen Elizabeth Bible should be relevant. And why not any
other translation? Why not the Greek text? The QE Bible was prepared in the least Judaised
country of the Christian world, in 18th century Russia, under the royal protection of its least
Judaised queen. When Queen Elizabeth I was asked to permit Jewish traders to enter Russia,
as they would bring her much profit, she replied: “I wish no profit from Christ’s enemies”.
Western ideas (and in their guise, Judaic influence) made few inroads then. The QE Bible was
edited by churchmen, not by scientists, and edited within the full view of the Church tradition.
Shamir compares the QE Bible to a mammoth unearthed in the frozen tundra – its corpse
survived for millennia because it was protected by permafrost. One may dislike permafrost
and prefer the tropics, but permafrost is better for preservation.
To all this, we can add that the Queen Elizabeth Bible is also called the Bishops’
Bible, although not only bishops, but also several other qualified church personalities took
part in its production. These qualified theologians, belonging to the new generation, were
already serving in the Church of England, and included many excellent linguists. Many of
them studied on the Continent, at the leading universities of the Reformation in Europe. The
Bishops’ Bible is also called Puritan Bible, because this Bible was more Puritan than the
enlarged version, which followed it and which became the official version. However, the
Bishops’ Bible has never become the Queen Elizabeth Bible officially, because the Queen has
never gave Her consent to this. Nevertheless, Elizabeth I accepted this translation and
subsidized fourty editions of it during Her long reign.
So Shamir sees that one may prefer a more Westernised, better translation for this
work. But if one wants to discover the pure old Hellene tradition, one should prefer the
Queen Elizabeth Bible to the subsequent, strongly Judaised texts. The Septuagint has plural
interpretations and various versions. The QEB has the great advantage of being a single text
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based on the LXX and fully approved by the Church. Its language is lucid, its meaning is
clear, and this allows us to find and reconstruct its lost Hebrew source.
Philo of Alexandria and the Christianity
Philo Judaeus or Philo of Alexandria is the first great figure of the Jewish
philosophy and theology, who fused the methods of the Homer interpretation of Stoic origin
and of the new Pythagorean numerology in order to reveal the hidden sense of the Old
Testament. Philo was born in a noble, honourable and wealthy Alexandrian family, his father
was the leader of the local Jewish community. Philo preferred studying and thinking to the
business activity. He undertook a public activity only when he led the Embassy of
Alexandrian Jews to Roman Emperor Gaius Caligula so that he should withdraw his self-
idolizing and anti-Jew dispositions. One of his preserved two biographical works deals with
this mission of him mentioned above, and the other relates about the Alexandrian Jewish riots
that caused it. Among his theoretical works we can mention his treatises titled On the
Contemplative Life and Every Good Man is Free. The former presents the life of the Egyptian
Jewish ascetic sect of the Therapeutae. The latter relates about of life of the Essenes, who
lived in monastic communities.
In his work On the Life of Moses, Philo compares Moses to the philosopher king
known from the teachings of Plato. He presents the activity of Moses as a law-maker, a priest
and a prophet in detail. Philo, who wrote mostly for the Alexandrian Greek Jews, was the
contemporary of Jesus, but does not mention either Him, or the developing Christianity. He
does not say a word about the Jewry of Judea either, and, presumably, he could not speak
Hebraic or Aramaic, and he knew only the Greek translation of the Bible. Many historians
consider him one of the direct forerunners of Christianity. According to the Christian church
tradition, when visiting Rome, Philo met Peter the Apostle, the founder of the Christian
community of Rome.
The philosophic theology of Philo treats the Mosaic Jewish laws in harmony with the
cosmos. The law-abiding man is also the citizen of the cosmos, since he adjusts his actions to
that one who controls the universe. The omnipotent God did not create the world in six days
because He needed time, but for the sake of the order. In Philo’s theory, the order is to be
found in the numbers, and the number six is the most perfect among all numbers (6 = 1+2+3).
Living beings were created by God on the fifth day, because there are five senses: vision,
hearing, taste, touch and smell. God first imagined and then created the world, and did the
same with the physical world. The only God has no name; the God of Abraham, Isaac and
Jacob is nature itself, the correct way of life, the acquirable wisdom. Philo stated that people
started to think deeper when they realized that there is a conceivable spiritual world beyond
the physically perceptible world.
The millenary strategy of the “chosen people”
Adolphe Isaac Crémieux (1796–1880) was the president of the Alliance Israélite
Universelle (Universal Alliance of Israelites) for six years, from 1864 to 1870. This original
Jewish political alliance was established in 1860, and its centre was the same Zionist Masonic
lodge, where Crémieux was the grand master of the highest council. The Alliance Israelite
Universelle, an extension of the Prieuré de Sion (Priory of Sion), was created to
counterbalance the Zionist movement powerfully developing in Russia. The Zionism was
based upon the nation, and wanted to create such a nation state for the scattered Jewish
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communities, which would have brought the diaspora Jewry in an equal situation with the
other nations detaining a territory and a country. On the other hand, the Alliance led by
Crémieux focused on the universal Jewry. The essence of their world strategy was that the
Jewish communities should continue to stay in those nation states in which they were rooted,
and should preserve their Jewish identities within them.
Therefore, Crémieux opposed those Zionist endeavours, which wanted to create a
nation state for the Jews on a geographically delimited territory. He also supported that the
Jews should give up their separatism, and, if possible, should integrate or even assimilate as
much as possible into the community of that nation, which hosted them. Following the
establishment of the Alliance, the Universalist Jews were successful all over Europe, but they
could not cross the English Channel, and they did not rival with the British freemasonry.
Although unwilling, the British masons supported the Zionism, at the request of the super-
rich Rothschild money dynasty. The Universalist Jews were not anti-Semites, only anti-
Zionists. Although the Alliance was created by the Prieuré de Sion, it was an alliance
maintained strictly for Jews, which, nevertheless, operated within a Rosicrucian Masonic
lodge in Paris.
Crémieux, who was twice the member, as Minister of Justice, of the French
government in 1848 and 1870, also fulfilled the function of grand master of the Masonic
mother lodge Grand Orient, turned toward the Jewry of the world in 1869, with a Manifesto
that was published in The Morning Post of London on September 6, 1920. The Manifesto
says:
“All Jews for one and one for all. The union which we desire to found will not be a
French, English, Irish or German union, but a Jewish one, a universal one. Other peoples and
races are divided into nationalities; we alone have not co-citizens, but exclusively co-
religionaries. A Jew will under no circumstances become the friend of a Christian or a
Moslem before the moment arrives when the light of the Jewish faith, the only religion of
reason, will shine all over the world.
Scattered amongst other nations, who from time immemorial were hostile to our rights
and interests, we desire primarily to be and to remain immutably Jews. Our nationality is the
religion of our fathers, and we recognize no other nationality. We are living in foreign lands,
and cannot trouble about the mutable ambitions of the countries entirely alien to us, while our
own moral and material problems are endangered.
The Jewish teaching must cover the whole earth. No matter where fate should lead,
through scattered all over the earth, you must always consider yourselves members of a
Chosen Race. If you realize that the faith of your Fathers is your only patriotism, if you
recognize that, notwithstanding the nationalities you have embraced, you always remain and
everywhere form one and only nation, if you believe that Jewry only is the one and only
religious and political truth, if you are convinced of this, you, Jews of the Universe, then come
and give ear to our appeal and prove to us your consent... Our cause is great and holy, and
its success is guaranteed.
Catholicism, our immemorial enemy, is lying in the dust, mortally wounded in the
head. The net which Judaism is throwing over the globe of the earth is widening and
spreading daily, and the momentous prophecies of our Holy Books are at least to be realized.
The time is near when Jerusalem will become the house of prayer for all nations and
peoples, and the banner of Jewish monodeity will be unfurled and hoisted on the most distant
shores. Our might is immense, learn to adopt this might for our cause. What have you to be
afraid of? The day is not distant when all the riches and treasures of the earth will become the
property of the Jews.”
To this Manifesto, we could add that Crémieux considered the Jewish communities,
living dispersed all over the world, primarily a global people, more exactly a world rule
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people. For him, the Zionist idea – according to which the Jewish communities living
scattered all over the world should be transformed into a single people, linked to a territory
and state, having a nation state – was not a good solution, because, in this way, the Jewish
people would have been one among the civilization-making peoples in the world. Did
Crémieux think that all the members of the Jewish community would then move to the newly
established Zionist national home? This might have seemed realistic to him. It is obvious that
such a “danger” has never been threatening. Therefore, those were right who thought that the
Jewish communities, which were already integrated into the societies of the host national
states, would only be strengthened if, besides that, they detain a “normal” nation state, linked
to an own territory. So, from the point of the strategy of Jewish survival, not Crémieux was
right, who favoured exclusively the universality, but those who wanted to strengthen the
Jewish communities living among other nations as minorities also with such a nation state,
where the Jews form the majority.
Nevertheless, when Crémieux writes that, living in stranger countries, the Jewish
communities cannot care about the problems and interests of states that are totally stranger
from them, because these communities usually strive to take over, in the host country, the
control over the financial, economic and, if possible, the cultural and political life, or at least
to influence them effectively. And, if so, they can be expected to identify themselves, at least
partially, with the problems and interests of these countries, societies and states.
It is worth quoting from the book titled Jewry (Zsidóság) of the Hungarian Dr. Lajos
Fejér, published in 1936. On page 232, the author exposes that “until the last period, when
the Christian world kept the Jewry at a distance not because their racial origin, but because
their religion, the Jew had a free way, after converting to Christianity, to the nation and
society of the host people, he could assimilate into it without any restriction. Thus, the
assertion concerning the exile is unjustified. The Jew himself expelled himself from the host
people, through his religion and his written and oral laws.”
Fejér refers to the Zionist novel of Louis Levisohn, titled The Eternal Island.
According to Levisohn, the assimilation is the Jewish application of the defensive mimicry.
He quotes from Levisohn the following:
“The mimicry originating from respect and devotion, as well as the desire for union
(assimilation) did not always remain pure, but it sunk – it had to sink in almost all cases –
into the defensive mimicry. It stayed apparent. Target and shelter. And, from the fusion of
these two mimicries, was that Jewish soul created, that complicated, sick, hair-splittingly
anguished, talented, but rarely creative, sensitive, arrogant, creeping like a reptile,
sentimental, solid, patriotic, revolutionarily modern Jewish soul, all characteristics of which
can be predicted, all heroism and all treason and confusion, and even the mere existence of
which is cruelty and cross.”
Analyzing this standpoint, Fejér exposes that in fact it is the process of transfiguration,
assimilation of the Jewry that stepped out into the light of the modern culture, a deep change,
which goes together with the psychological-intellectual and even physical parturition. From
the tradition of the Jewry and from the millennial conditionings rooted in the Jewish soul, we
can still expect for such inhibitions, which resist the effects of the civilization and of the
Christian culture that transform soul and body. Fejér got to the conclusion that the
assimilation and the cult of the Jewish traditions are incompatible, and lead to a scission in the
self-conscience, a kind of schizophrenia. The Jewry must choose between the assimilation and
the ghetto, i.e. the jungle of the Talmud. If they choose the assimilation, they must not stop on
this road or turn back. Following the way of Christianity, they must know that they bear two
world views within themselves. One of them is a dead-weight, which pulls them down, and,
through the racial memory, could take them back to their sad past. And, on the other hand, the
Jewry does not want the assimilation, they must close themselves out of the physical and
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spiritual life order of the Christian world. They must continue to live, separated, their own
ancient Jewish life. Namely, they will have to restore the separate Jewish world, which they
had created for themselves in their dispersion from the beginning, and which they had not left
until they stepped out of their religion, i.e. of the ghetto.
According to the standpoint of Crémieux and the Alliance Israélite Universelle
created by himself, the assimilation is compulsory for the Jewry. Of course, the Alliance
established in 1860, as a Jewish institution, does not deny the Jewish religion, and does not
require it to be given up. However, it protested against Jewish nationalism. It finds it desirable
that the Jewry should melt into the surrounding peoples, so that they should not leave any
other trace behind them, but their morality manifesting itself in their religious practice. The
relationship between the western and the eastern Jewry should be the same as that one
existing between the Catholics and Protestants of two countries.
However, Lajos Fejér thinks that the religious relationship between the Catholics of
the two countries essentially differs from the contacts between the religious relationship
between the eastern and western Jewry. Namely, the Christians of the European countries are
connected with each other, besides their religion, also by the identical Christian culture. The
culture of the eastern and western Jewry, however, differs to a great extent from each other.
The culture of the former is Jewish, that of the second is Christian. Even their religious life is
extremely different. The western Jewry does not practice the observance, i.e. the strict
following of the Jewish traditions, and, right for this reason, the eastern Jewry does not
consider the western assimilated Jews to be Jews. If the Neolog Hungarian Jews were aware
of the fact that the Jewry is not a religion, but a race, a nationality, they would feel to make a
choice: to stay a Jew or to become a Hungarian. Lajos Fejér asserts that most of them would
break with the Jewry.
In the following part of his book, Lajos Fejér deals with the fact that, if there is no
Jewish religious life, only assimilation, then, as a matter of fact, the Jewish ethnic should
cease to exist, since it never had any special purpose. It was secured by the separation, the
restriction of contacts with the pagans, the strict ban of mixing through intermarriage, the
observation of the Law. The ethnic separation and the intermarriage were not the will of the
people, but the result of the theocratic Jewish state, and later of the way of life of the Jewish
communities living in Diaspora. Where the Jewish existence lives in the conscience and way
of life of the Jewry as a religion, there the Jewish ethnic character has neither importance, nor
justification, from the point of general culture and progress.
What Lajos Fejér writes about racial existence, is important even up to the present
date. He starts from the fact that the Jewry in not so much a religion, but more a race and a
nationality. The religion is an ideological complexity, conveyed by the reason or the affection,
but is not given a priori through birth. The situation is different in the case of the race, which
continues with the birth. Fejér thinks that the racial characteristics cannot be taken off, they
can only be disciplined and modified through mixture. But, as the German or Slav of
Christian religion could sincerely undertake to serve the Hungarian national idea, as he could
reform the other people living here to his own image, and could put them, serving the public
good, in the service of the Hungarian national genius, the same can happen even with the
Jewish race, if the Jewish religion does not stand, as a prohibitive fence, between the Jewry
and the society of the host nation.
According to Fejér, the Jew, assimilating into the Christian culture and society, learns
the history and cultural history of the Jewry, and, by this, lays the bases of the Jewish self-
education. In this way, the Jew will be able to see that the history of the Jewry, especially in
the course of the 2000 years of the Diaspora, “is a series of mostly justified persecution, and
their cultural history is the sterile cultivation of the Talmud and then of the Kabbalah, and
everything that happened to them or what they did was originating from the Orthodox
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physical and moral separation from the cultural endeavours and development of the
European nations.”
From all this, the emancipated and culture-needing Jew draws the conclusion that “the
sticking to the Jewish religion has not and even cannot have a reasonable connection with the
development of the European cultural nations.” (cited work, p. 237)
For 2000 years, the Jewish intellect – otherwise susceptible to ultra-subtle
differentiation – wasted so much energy on the exegesis of the Bible, on the Halakkah, the
collection of traditions and laws (the Talmud) and its explanation, that the realization of this
exerts a more discouraging than elevating effect on the Jew having a purified thinking.
According to Lajos Fejér, the Jewish problem can be solved in only one way (cited
work, p. 238): “The Jewry must cease to exist. Naturally, on the current stage of civilization,
it is absurd to think about violent means, what is more, everything must be done so that such
an idea should not serve as nourishment to the instincts of the masses of people.”
And, in turn, if we avoid the violent means (we remind the reader that the book was
written in 1936, well before the tragedy of the holocaust – J. D.), “the solution of the Jewish
problem can come only from one side: from the side of the Jewry” Fejér sees that this solution
has already started with the process of assimilation. And this must finish with the termination
of the Jewry. Let us quote again the author: “The honest desire of the assimilation will strip
off, from the assimilated Jewry, the thick bark, stratified through millenniums, of the
Talmudic suggestions. It will make the Jewry available for the deepest suggestions of the
Christian culture. Under the effect of these suggestions, the Jewish ‘self’ and the Jewish
selfishness – the pharisaism, the fastidiousness – will be replaced by the Christian ‘self’ and
the Christian unselfishness. The nation, in the trunk and bloodstream of which the Jewry
wants to assimilate in this way, will, instinctively, register this psychic metamorphosis, and
will not differentiate, from the other fellow countrymen, these people who, themselves, do not
make and feel any difference between themselves and their environment.”
What is the difference between the people linked to their homeland
and the world-wanderer people?
That people can be considered to be the people of the land, of the soil, which can only
exist if his life is organically and closely linked to his land of birth, motherland, homeland,
and to that special piece of land on which his birthplace and native house lies. This kind of
sticking to a concrete piece of land is not an excluding nationalism. The Greek democracy
was also based on the clinging adherence to the given city-state and to its territory
representing the homeland. For a citizen of Athens, it was not easy to move to another city-
state. He could move there, but his rights there were not identical with the rights of those of
who were born in the given city-state. Israel Shamir writes in his work titled Cabbala of
Power published in 2007 (pp. 161–166) that it can be approached in many ways why the Jews
are so susceptible to internationalism and globalization. According to some, this is the proof
of the special humanism of the Jews. Clement Greenberg thinks that “the world history level
of the European Jew represents the highest type of the forms of human existence known to
date.”
Those who receive this with doubtful cynicism, refer to the fact that the Jews are those
who do not see much difference between peoples and peoples, because for them a goy is a
goy, and so the non-Jews can be qualified together. These Jews mention that the nations must
disappear, and the religions too. But this does not apply to Israel, because this little people is
God’s chosen people.
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Kevin MacDonald, professor at California State University, Long Beach, is on the
opinion that the annihilation of nations would be useful for the Jews from practical reasons,
because in this way they could play, as an organized team, against the individuals carefully
separated from each other. Nevertheless, for this it is necessary to properly foresee the distant
future. The enhancing of the communication flow is useful for the Jews, because they live in
many different countries
The more developed communication system is not only a blessing. If the flow from
one place to another is very easy, the necessity of it ends rapidly, since the people changing
place and the information will become similar. Shamir examines closely how the flow, the
continuous change of place and migration creates, for the different Jewish movements, the
possibility of integration into a community. He calls this continuous flow, change of place
flux, which is the most general form of free movement, like Carl Popper’s “open society”,
the free market liberalism of Friedrich von Hayek, or the brutal violence hiding in Zionism,
the revolutionary tools propagated by Trotzkism, and the American militarism applied by the
neo-conservatives. All these different movements enhance the flux, the unlimited and
continuous change of place in masses, the emigration and immigration, the permanent flow
and wandering. And, in the same time, they hinder the belonging and affective linking to the
motherland, the native land, to a determined piece of land.
Shamir supports his opinion with a strange example. In Russia, in the 19th
century, the
government nationalized the production of alcohol, and, by this, it made more income than by
all other previous income taxes. By this, it put an end to the poisoning of the population with
alcohol. According to Shamir, this disposition of the tsarist government contributed to the fact
that the Jews emigrated in masses from Russia to the United States much more than those
“persecutions” which they suffered.
After supporting this assertion with the Jewish successes reached in the field of arts,
Shamir asserts that even the imperialism is the form of appearance of this flux. The modern
American imperial expansion was enhanced by the rightist neo-cons. In the Soviet Union, the
leftist Trotzkist fraction propagated the imperialist policy of the permanent world revolution,
until Stalin stopped it with the slogan “building up the socialism in one country”.
The British world conquest was urged by Disraeli, Great Britain’s rightist Prime
Minister, who, although was baptized, stayed an extremely chauvinist, haughty Jew. It was
Disraeli who dreamt the establishment of a Jewish state, and he can be considered the creator
of Zionism much more than Theodor Herzl.
Disraeli fought passionately against those Englishmen who were convinced that the
colonies can be considered to be millstones pending in the neck of their country.
The French Adolphe Crémieux, considered “leftist”, was the great supporter of the
French imperialism. It was him who, as a member of the government, gave citizenship to the
Jews living in Algeria, while the Muslims there could only be second-class citizens in their
own country.
The imperialism, i.e. the imperial expansion did not improve the lives of the simple
French and English people in their own motherlands. It resulted in a series of wars and the
immigration in masses into their countries. This exhausted them completely. Here remarks
Shamir that, if they wanted to save their country, they should let the United States to expand
so much that it collapses. However, he is worried that the collapse of the world would happen
earlier. In this interpretation, the love of motherland and homeland is an anti-imperialistic
tendency. It is worth the attention that, according to Shamir, the movement “Gay Pride”
belongs to the flux. The problem is not with the gays, as it is a private business. The
impertinence is in the term “pride”, the hubris. Proud Jews, proud gays, proud Americans are
equally unpleasant and rejectable, since all of them express the haughtiness and arrogance of
the flux.
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All exaggeration switches into its opposite. Therefore, for the sake of avoiding the
misunderstandings, Shamir emphasizes: all this does not mean that the flux, i.e. the
continuous change of place and flow should be terminated completely. The world needs flow
and change of place to a certain extent. Without it, the mankind would not have universal
ideas, and, for instance, even the internet would not exist, which offers a huge opportunity for
the mass exchange of information. But the arrogance, haughtiness and even shouting
impudence of this flux should be limited, namely so that we follow it with closer attention and
keep it under observation. This is necessary because the flux consumes the energies
accumulated in the differences, the common heritage of mankind. Similar to this is how the
Jewish settlements, with their green lawns and swimming-pools live such a life that they
consume the underground water reserve, the consequence of which is that the Palestinian
villages are short of drinking water.
Shamir thinks that what he calls flux, as well as the sticking to the place of birth and to
the family home – called, in turn, Sumud, with a term borrowed from the Palestinians – are
not racist approaches. He differentiates them sharply from the slogan of “Blood and Soil”.
Namely, in this slogan, the emphasis is on the clinging adherence to the soil, the binding to
the soil. The fatherland is the first and the last, since the blood is never enough.
Shamir illustrates his standpoint with several examples, and then draws the learning:
“In order to belong to a people, we must give up the flux, and, studying carefully the customs
and way of life of the given country, we must adhere to a new Sumud, keeping the rules of the
country, loving its people, joining their church, accepting their leadership, learning their
language. We must give up the haughtiness of the flux, and sincerely love the idea of Sumud. I
thought to all this when I stood behind a little black girl in our parish church, in the queue
waiting for the Holy Communion.”
The writer of the present lines thinks that also in the question of the flux and Sumud,
the solution is the golden mean. If freedom is a good thing, the exaggerated freedom is bad
yet, since it switches into its opposite and leads to anarchy. If the sticking to the native land is
a good thing, the binding to the soil, the narrow-minded provincialism leads to stagnation, to
closing-in, and it cannot be considered good any more. As also in pedagogy there is a need for
freedom, which enhances the development of self-activity and initiative, the exaggerated
freedom, the libertinism, which lacks the disciplined learning, is already a bad thing, because
hinders the optimal acquisition of knowledge. If discipline is a good thing, the rigid discipline,
refraining the development of the creative thoughts, is a bad thing, because it limits the
performance, and leads to stagnation and, finally, to rigid barracks conditions at school. It is
necessary to find the optimal relationship between the freedom limited with discipline and the
discipline kept in motion with freedom, the order serving the life.
Therefore, if I unilaterally favourize the movement, the migration, the making off, I
will not be able to really get rooted in the culture of any of the nations. If, on the other hand, I
cut myself out of the movement, of the reception of new things, I will get stiffened into the
provincial conditions and will be the prisoner of the lifeless stagnation.
Both Lajos Fejér and Shamir recommend that the people of eternal change of place
and wandering, the Jewry of towns and big cities should make efforts to get attached to the
host people, to its homeland, landscapes and fatherland. In this way, they can find the
equilibrium between their openness to the world and cosmopolitan freedom and their
belonging to a specific people and to its natural habitat. The latter makes it possible to be a
part of a living world being in harmony with the natural and social environment instead of
wind-blown sand.
The Jews – the eternal separatists
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William Luther Pierce (1933–2002) was born in one of the aristocrat families of the
American South. He earned a doctorate in physics and was a professor at Oregon State
University for years. Until his death, he was active as the leader of the white separatist
organization called White Alliance, and was the leading ideologist of the white nationalists.
He took the racial question as seriously as several other outstanding leaders of the Jewish
people. In 1978, Pierce adopted the views of the religion called Cosmotheism. This, in fact,
can be qualified as Panentheism. The widely known Pantheism is a world view that
identifies God with nature, the natural laws. On the contrary, the Panentheism teaches that
everything exist in God, as if God were the ocean and we were the fish in it. The universe is
God’s body, but the conscience and personality of God is greater than the totality of all parts
of the universe. All parts participate, with a freedom of certain extent, in the creation, together
with God.
Cosmotheism is an impersonal form of Panentheism, which believes in an
impersonal spiritual creative force, and regards it God. It is the moving force of the whole
universe. According to the teaching of Cosmotheism, everything is in God, and God is in
everything. It deems the nature of reality and existence variable, which is intended to reach,
developing together, the totality of the universal consciousness, the Goodness. The cosmos is
an arranged, harmonic universe, and thus the divine is equal with the existing and with the
consciousness, and represents an arranged and harmonic part of the whole universe.
As we have already mentioned, Pierce regarded the survival of the white race the
most important, and, according to his peculiar world view, man is his own god, and his
religion can be derived from the respect for his ancestors, so the ancient great white
civilizations have always believed in the greatness of people who created them. So did the
ancient Greeks, Vikings and the Aryans who created the Hinduism and believed that the
secret of goodness lies within them. Therefore, the unique characteristics of the human race
should be preserved and developed.
In July 2001, Bob Grant, the media star, invited William Pierce to a talk show in his
New York radio programme. At the time of the broadcasting, it was an afternoon rush-hour in
New York, and many people phoned from their car. Most of them agreed with what Pierce
said about the racial issue and the Jewish problem. The few Jewish callers, of course, were
intensely hostile, and wanted to know why Pierce blamed the Jews for the bias of the news
and entertainment media. It's not the Jews who should be blamed, they said, but the
shareholders of the media companies. The Jewish media bosses just do what the shareholders
tell them to do.
Pierce responded by pointing out that the top Jewish media bosses also are in many
cases the dominant shareholders in the media companies, and he gave Sumner Redstone as
an example. Redstone is the majority shareholder in his Viacom Corporation, which in turn
owns Music TV, Paramount Pictures, and CBS. He described Music TV as being the most
destructive of all media influences on young, white Americans. He said that MTV
deliberately and consistently encourages miscegenation. This racially destructive policy is
Sumner Redstone's policy, not that of any anonymous shareholders, that it is a Jewish policy,
and that it is the same policy as that of every other Jewish media boss.
The host of the talk show, Bob Grant did not understand Pierce’s answer and asked: "I
don't understand. You said that Sumner Redstone and the other Jewish media bosses are
deliberately trying to destroy our society. Why would they want to do that? They are rich and
powerful and influential. This society has been good to them. Why would they want to
destroy it? That doesn't make sense to me." It was a very reasonable question from the part of
the host. It was the question that almost any intelligent, honest person might ask in those
circumstances. It was the natural question to ask: Why do the Jews want to destroy a society
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that has been so good to them – especially the richest and most powerful Jews? One can
imagine some embittered Jewish cab driver or office clerk wanting to strike out at Gentile
society because he is resentful over the fact that he can't seem to strike it rich like the more
fortunate members of his tribe, but why would those who are riding high – billionaire Jews
such as Sumner Redstone and Michael Eisner – want to wreck the system from which they
are profiting? When Bob Grant asked him that question, Pierce wished he hadn't. He knew the
answer, and it was a simple answer. One needs to hear the answer and then to think about it
carefully for a month, turning it over in one's mind.
The answer, in its simplest form, to Bob Grant's question is this: Jews do what they do
because they are Jews. A more didactic answer is what Pierce actually said to Bob Grant:
“The Jews, throughout their entire recorded history, have lived as a minority among other
people. That's their typical modus vivendi: not living among themselves in a Jewish society,
but living as a small minority – usually a rich and powerful minority – in a non-Jewish
society. Israel today is an exception to this pattern, but Israel is an anomaly, something that
has existed for only 50 years out of the last 2000 years, and even today it encompasses only a
small minority of the world's Jews. Most of them live in the so-called ‘Diaspora’ as members
of a Jewish minority in the midst of a Gentile society.”
“When the Jews approach a healthy, homogeneous Gentile society with the aim of
infiltrating it, they are looked upon as outsiders, as aliens, and regarded with suspicion -- and
often with hostility if their reputation has preceded them. Facing such suspicion the Jews find
it very difficult to gain power or influence so that they can exploit the society. Their way of
dealing with this obstacle is to undermine the solidarity of the Gentile society: to destroy its
homogeneity, to attack its morality and its traditions, to encourage alienation among its
young people. They do everything they can to make the society more "diverse," more
multicultural, more cosmopolitan, more rootless, more atomized. This is a slow process, often
continuing for several generations, but as it proceeds the society's barriers against the Jews
crumble. Ultimately it allows the Jews to control and then plunder the society, to suck it dry
before moving on to another Gentile society and beginning a similar process anew.”
Pierce was sure that his answer was simple and straightforward, but it was not likely to
be fully digested by someone listening to his car radio while trying to get home in the New
York rush-hour traffic. It's a statement of fact, but it needs to be substantiated with a lot of
detailed explanation, with many concrete examples, in order to be convincing. Therefore,
Pierce decided to try to provide some of the explanation and some of the concrete facts in a
short study with the title The Scorpion and the Frog, referring to the well-known fable. First,
Pierce looks at what he said about the Jews being a tribe of perpetual outsiders. This is a
notion many people who look only at the here and now have difficulty believing. They think
the Jews aren't outsiders, since they are as thoroughly integrated into the American melting
pot as anyone. They are in every facet of American business and professional and cultural and
political life. They own stores of every sort. They buy and sell every type of merchandise.
They may not be farmers or welders or machinists or carpenters, but they are doctors and
dentists and lawyers and teachers and writers and artists and musicians. They are politicians.
There are more and more of them in the U.S. Senate, four times as many as one would expect
from their percentage of the overall population. There are even two of them on the Supreme
Court, which is about nine times what one would expect, since they make up only 2.5 per cent
of the general population.
Pierce presented in detail the sorts of responses he had sometimes had from people
because, in his opinion, the historical record, however, shows something quite different. In the
course of the past 2000 years, the Jews were worming their way into one country in Europe
after another, gradually monopolizing certain sectors of the economy and then using their
monopoly to exploit the Gentile population. For this, eventually, they were expelled en masse
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when their depredations caused sufficient public unrest. He mentions England as an example.
The Jews entered England in the wake of the Norman conquest, purchased various privileges
and trade monopolies from the ruling monarchs, and made themselves thoroughly unpopular.
By the latter part of the 13th century, the people of England had become so exasperated with
the Jews that in 1290 King Edward the Great expelled all of them from his realm and forbade
them ever to return. One might think that they wouldn't want to go back to a place where they
had become so unpopular and undesirable, but it is a historical fact that they never stopped
scheming to get back in. It wasn't until Oliver Cromwell and his forces had overthrown the
monarchy in the middle of the 17th century, however, that they were permitted to return to
England.
They also were run out of virtually every other country in Europe – several times from
some of them – but they always were looking for opportunities to sneak back in and return to
their old depredations. They especially welcomed the upheavals and dislocations
accompanying wars and revolutions because these gave them opportunities to gain footholds
in places from which public hostility or the law had excluded them. During the Napoleonic
Wars at the beginning of the 19th century Jews followed Napoleon's armies into many places
from which they previously had been barred.
Usually they didn't have to wait for a war, however: typically they would depend upon
the natural tolerance of their hosts to get a toe in the door, and then they would work slowly
and patiently to push that tolerance beyond all limits. They always have had an uncanny
instinct for sniffing out their hosts' natural weaknesses and vices and then using them to break
down the society's discipline and order, thereby making it possible for them to enlarge their
toehold and gain more influence. Thus, the Jews always have had a proclivity for the liquor
business, casinos and other gambling activity, prostitution, the white slave trade,
pornography, and the like. It is no coincidence that for many years the Jewish Bronfman
family owned the biggest producer and distributor of liquor in North America, the Seagram
Company. There are many non-Jews involved in the hotel business around the country, but in
Las Vegas, where gambling is so intimately associated with hotels, the business is completely
dominated by Jews. In the booming new business of internet pornography, the biggest
pornography site operators are indirectly or directly Jewish control.
In this article, William Pierce also presents that the organized Jewry find their way to
whatever corrupts and weakens their hosts, to whatever is morally destructive, to whatever
makes their hosts forget their own traditions and values. They attack order and discipline:
those things are no fun, those things are old-fashioned, those things are not cool, they tell the
young people. They ridicule the concepts of personal honor and personal responsibility. They
distract the people from the important things and fill their minds with foolishness. They
encourage every alienating tendency, every tendency that separates people from their roots.
They preach “tolerance” as the supreme virtue: their hosts should be tolerant of every sort of
cultural filth and weakness and perversity. And all the while they worm their way into the
host society more and more deeply. At the beginning of the 20th
century, the American society
still resisted and tried to keep away the pushy, unpleasant outsiders. But they kept on pushing,
kept on breaking down the order and structure in the society.
Pierce summarizes his answer to the questions asked by Bob Grant: “Many ethnic
groups came to America from Europe and at first were considered as outsiders but sooner or
later became insiders, and the interests of the majority became their interests. In a sense
every group that didn't come here from Great Britain began as outsiders. The German
mercenaries from Hessen who fought for King George and stayed here after the American
Revolution very quickly became insiders. The Irish, the Poles, and the Italians all went
through a similar evolution. Why is it so different with the Jews – aside from the fact that
their roots are not European but are Middle Eastern?”
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Pierce answers his own question: “For one thing these other groups, the non-Jewish
groups, never had deceit and destruction as their primary tactics for becoming insiders.
These tactics are not part of their history. Their aim was to become part of the society, not to
break it up so that they could exploit it more easily. This difference is manifested in the
difference in self-image between non-Jews and Jews. Every healthy ethnic or racial group has
a distinct sense of group identity and a distinct self-image. The Scots and the English, for
example, have distinct self-images, with their own distinct ancestral languages, their own
historical traditions and customs and so on. But despite their history of conflict and hostility
toward one another in Europe, either group can blend into the other and adopt the other’s
interests without difficulty.”
“The Jews are different in both degree and kind. For one thing they are much more
strongly ethnocentric than any other group. Look in the Yellow Pages under the heading
‘associations’ in any large American city. Compare the number of Jewish associations or
clubs or societies or organizations with those of the Irish or the Germans or the Poles. Of
course, you also must have some idea of what percentage of the city's population is Jewish or
Irish or whatever in order to get a meaningful comparison. For the best statistics, go to a
library that has a copy of the Encyclopedia of Associations. Jews make up just 2.5 per cent of
the population of the United States, and yet you will find more Jewish associations listed than
for any other ethnic or religious group. They do stick together and support each other more
than the members of any other group.”
“The Jews also are different in kind. What is the essential element in being a Jew? It is
being ‘chosen’. It is believing that one is a member of a tribe or a race or a people that has
been chosen by their tribal god to inherit the earth and all that's in it. It is being superior to
all who have not been chosen. If you are able to read the Old Testament with an open mind,
the message there is quite clear. If you want more detail, read their Talmud. They don't like
for you to go poking around in their Talmud, but if you are reasonably resourceful you can
find a set of volumes of the Talmud and read what they think about themselves in contrast to
non-Jews.”
In the end of his present article, William Pierce refers to the book titled You
Gentiles, by the Jewish leader Maurice Samuel, which is excellent for a start. He also
recommends the very revealing books on the doctrines and practice of Judaism by Israeli
Professor Israel Shahak. But most fundamentally the Jew, like the scorpion and every other
creature, does what it is in his nature to do. Pierce continues:
“He has always lived not by settling down on a piece of turf of his own and planting
his own crops and building his own house, but rather by breaking into someone else's house.
And once in he doesn't try to repair the damage he did by breaking in, but he continues to
cause more and more damage as he loots everything of value and then, when there is nothing
of value remaining, finding another house to break into -- and then another -- and another.
That is his nature.”
Sincerely on the relationship of the Jews and Gentiles based on
mutual respect
In the newspaper The American Hebrew, Jesse H. Holmes wrote the following: “It
can hardly be an accident that antagonism directed against the Jews is to be found pretty
much everywhere in the world where Jews and non-Jews are associated. And as the Jews are
the common element of the situation it would seem probable, on the face of it, that the cause
will be found in them rather than in the widely varying groups which feel this antagonism.”
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The Dearborn Independent, also known as The Ford International Weekly, was such a
weekly magazine, which was published by Henry Ford, the founder of the Ford Motor
Company, from 1919 to 1927. The famous articles were not written personally by Ford
himself, but he set forth, in words, his opinion in detail to his secretary, Ernest Liebold, and
to William J. Cameron, the editor of the magazine. Therefore, the series of articles dealing
with the Jewish question, signed by Henry Ford, can be considered the direct work of
Cameron, although Cameron himself did not agree with many of the assertions in it. On the
other hand, it was Liebold who gathered the sources, which supported the factual statements
of the articles. In 1925, The Dearborn Independent was already issued in 90 thousand copies,
and only the number of copies of a New York newspaper, the New York Daily News was
bigger than theirs in this time. Court cases were started against Ford due to the articles
considered to have anti-Semitic content, and this partly caused the fact that the last issue of
the magazine appeared in December 1927.
In the issue of January 7, 1922, a central question came into the limelight: whether
what the series of articles says is true or it is untrue. If true, it ought to be considered. If
untrue, it ought to be disproved, mentioning the proofs. The Jewish leaders did neither of the
above in 1922. According to the magazine, tens of thousands of Jews know that the assertions
of the series of articles are true. No representative Jew has ever approached the editorial office
with a denial of the truth of what has been stated in the magazine. The chief objection made
against the publication of the facts was stated in this form:
“What you say is true. Certain Jews are guilty of the things you charge. But why do
you say ‘Jew’? Why do you not say Al Wood, Morris Gest, Louis Marshall, Samuel
Untermyer, ‘Wolf’ Lamar, Edward Lauterbach, Felix Warburg – why not let it go with these
men’s names, why say ‘Jew’? When you say ‘Jew’, it sounds as if you blamed all the Jews.”
The editors of the magazine argued as follows: First, that these men are Jews.
Second, that being Jews these men constitute a problem for the Jews themselves. Third, it is
time for someone to call attention to the necessity of cleaning up on that problem. There has
been too much mincing of words. There has been too much concealment of names and
relationship. The method which Jews were taking in America with regard to concealment was
heading them swiftly toward the same conditions which have menaced their race in Europe.
The editors said that their magazine would count no labor lost that would rouse the Jews to a
sense of the responsibility which rests on them to solve the Jewish Question in their country,
possibly the only country where it can be solved.
If the paper had mentioned only the names of individual Jews, never mentioning their
race, and had exposed them as isolated persons, it would have made no difference in the
general Jewish reaction, the cry would still have been that “the Jews were being attacked”.
Whereas the other people of the country would have been just as much in the dark regarding
the close bonds which unite all the groups of evil influences in this country. The purpose of
this series of articles is to let in the light – to show the Jews generally that the stench had
become too great, and to show the rest of the people where the stench arose. The list of
charges for the Jews of the United States to consider as affecting the distinguished members
of their race is very serious. And the charges are true.
It is true that there is a distinct “Jewish idea” in business and professional life, which
has eaten away the traditional principles of honor on which Anglo-Saxon life was erected.
Every Jew knows that, every non-Jew knows it. Here and there a Jew in business or
professional life makes a breakaway from trickery, deception, dishonesty, and exploitation of
the gullible public, and achieves success with honor, but that Jew also knows that the majority
of his brethren in the same line practice different methods. It is true that behind the amazing
degeneracy of the modern stage and motion picture is a solid wall of Jewish ownership and
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control. This ownership and control must bear the responsibility for the rapid and dangerous
deterioration which has come since such ownership and control was achieved.
It is true that behind all the shoddy and make-believe and adulteration in the staples of
life is the Jewish idea of profits, “making the ephah small and the shekel great”, and that the
initiators of American business into these shady practices were Jewish. It is idle to retort that
apt pupils have been found among non-Jews. The point is that before Jewish influence
began to be felt in American business, sound quality and a fair price were the rule. It is the
Jews’ ceaseless boast that wherever they go they change business, but not for the better.
It is true that beneath all the network of trivializing influences in literature, art,
politics, economics, fashion and sport, is Jewish influence controlled by Jewish groups. Their
Orientalism has served as a subtle poison to dry up the sound serum of Anglo-Saxon morality
on which this country thrived in its formative years. In every movement toward a lower
standard, a looser relationship, especially toward the overthrow of the old Christian
safeguards, do not Jewish names predominate? These charges and many more have all been
made in detail with evidence submitted by The Dearborn Independent with the purpose
simply to get the problem squarely before the Jews of the United States. These charges are
true, they cannot be disproved, Jewish leaders have not attempted to disprove them.
Thousands of Jews have said that they are true. Then the question is justified: where is the
obstacle to a settlement? This question is best answered by three typical replies made by Jews
during the course of the present series.
The first counter-argument is the following: “What you say is true, but you should
not say it.” There is a principle, seldom expressed among the Jews, but always acted on, that
Jews should not have public attention called to them except by themselves or their chosen
spokesmen. This is unfortunate, because any establishment of the Jews as an accepted and
trusted part of the general citizenry must include their being known as such. In America the
Jew should not only welcome the widest knowledge (unless he has something he fears to have
known) but should himself undertake the exposure of those things which will eventually bring
a shadow on the name of his race. The Jew has never done this. When exposure could no
longer be suppressed, the Jewish attitude has always been one of defense, regardless of the
merits of the case. “The Jew can do no wrong” is the principle acted upon. Never must a
“Gentile” charge be admitted, however true it may be. Never must a “Gentile” reform be
assisted, no matter how much needed. According to the authors of the article, that principle
may do for other countries, but not for the United States. If the Jew is wise, he ought speedily
to take warning that in this country the old line of action will not succeed. If Jews continue to
show a disposition to defend the malefactors of their race against the just expostulations of the
rest of the people, they must not be surprised if the public begins to view them as all one
crowd – an inner nation set against the outer nation.
The second counter-argument is the following: “What you say is true, but your
conclusion is wrong: it is not for the Jew to change to your standards, it is for you to change
to the Jew’s standards.” This answer admits that there are two ideas in conflict in the United
States, what it unfairly terms the “Puritanic” idea, opposed by what it calls the Jewish
Universal idea. This view would command respect if it represented a superior morality in
conflict with a lesser morality, if it represented a higher civilization against a lower
civilization. Will any Jew contend that it does? Will any Jew deny that the influence of the
Jewish idea in this generation is to break down the Anglo-Saxon morality? Will any Jew
deny that the civilization of the United States before the advent of the Jews thither was
superior to the highest civilization ever achieved by the Jews anywhere at any period of their
history?
The Jewish idea has a tremendous infiltrating force and a serious degenerative power.
It is a powerfully disintegrating influence. It eats the substance out of the civilization which it
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attacks, destroys its moral virility, throws down its reverence, saps its respect for authority,
casts a shadow on every basic principle. That is the way the Jewish idea works in American
civilization. Moral gravitation being, like physical gravitation, downward, it is not
difficult to seduce human nature to lower levels, but it is a massive task to lift it to
higher levels of morality and reverence and sober justice. And this latter task, organized
Jewish effort has never attempted. The campaign in the United States is a campaign for the
breakdown of the ideas that now obtain, not a lifting of them to a higher degree of nobility.
If it were an attempt to substitute the austerity of the Mosaic law—the law
given to Moses, not the ordinances decreed by Moses—for the half-hearted Christian idealism
of the day, even that would be a task in which all right-hearted men could join. But Moses
condemns the modern Jews more severely than anyone else could. The modern Jews have
rejected the Mosaic law. They have built their international power upon the exact opposite of
the Mosaic law. Moses was given a law of human society which would have saved
civilization its greatest tragedies. Moses has a social program, obedience to which for one day
would completely wreck the Jewish international power. Moses is their judge, and when the
Law is established Moses will be their destroyer. From the conflict of the Christian and the
Jewish systems of values and ideas, it becomes clear that one of them is the idea of disruption,
fostered by the false and delusive hope that disruption will spare the disrupter.
The third counter-argument can be formulated as follows: “What you say is true,
and we Jews could change it if we only would. The trouble is, we don’t want to seem to be
driven to it. But I don’t see how otherwise we are to do it.” Many Jews will recognize this
sentiment as their own, but they will be readier to express it to a non-Jew than to a Jew. Why?
Because prophets must be prepared to suffer in Judah. “Well, if you insist on playing Christ,
you must expect to be crucified”, said Lilienthal to Isaac Wise. No one with a sense for such
things—and there are believers still left in Judah—will doubt that the times are ripe for a great
change respecting the Jews. So strong is the feeling among the remnant of believing Jews that
it is interpreted as forewarnings of the Messianic period. Among the Judaized Christian sects,
other interpretations are given to the times, most of which are used to support political
Zionism which represents the materialism and unbelief of present-day Judaism. The
misguided Christians, who see God’s alleged will of universal Jewish dominion fulfilled by
means of the Jews’ defiance and despite of the Law given to Moses, ought to re-examine their
ground for so strange and immoral a conclusion. The break-up of this civilization, this age of
civilization, will occur because of the collapse of this system by which the Jew has obtained
his hold on the nations. The system that gives him his hold is doomed, is passing, and the
fallacy of Jewish tribal destiny to rule the world will pass with it.
The author of the article thinks that, with this change already on the threshold,
prophets should be expected to arise in Judah to recall their people to the Law whose previous
denial meant their overthrow. These prophets will not be of the “Reform school” which denies
the God of Israel as a divine Person, nor will they be of the ultra-orthodox school which
makes much of fringes and cookery. They will be of the race of the ancient prophets who
spoke boldly against Judah’s violation of the fundamental law.
The editor of The Dearborn Independent thinks that the greatest overturn would be if
the Jewish communities understood that the way they are going is the way their own Law
foredooms to failure, and that the people they hope to triumph over are the people their own
Scriptures say they are not to triumph over. They think that the first assertion is beyond
dispute: there is no success for the Jew, no establishment of him in the world except upon the
basic law given to Moses. In any other attempt he must fall when the structure collapses. The
second assertion is in dispute, but is by no means beyond consideration, especially by Jews. In
these matters the Jews are much wiser than the so-called Christians. There is among the Jews
“the law of the brother” and “the law of the stranger”. The latter permits several important
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things which the former prohibits. The Jews have been treating the rest of the world, often
intentionally, sometimes as a matter of course, according to the “law of the stranger.” This is
one of the influences which has helped to solidify Jewry against the rest of the world.
Jews are thinking about those very matters now. They are thinking from within. They
are seeking a reason for the sense of unfitness which they feel when they adopt the traditional
attitude of enmity toward the “others”. In the case of America, the “others” in this case are the
Anglo-Saxon peoples. The reason for this sense of impropriety is that here, in this land, the
Jew will have to change his attitude of antagonism and dwell in peace as in a land prepared
for him. Not as lord of it, by any means, but as a grateful wanderer at last come home. Not
as a ruler, but as adding his bit to the righteousness, prosperity and peace of the people. It is
not a question of religion. Let the Jew get back his Mosaic religion – it is the most perfect
social system ever devised and directly contrary to the practical modern Jew’s idea of things.
It is not a question of intermarriage. Let the Jew keep as long as he pleases his idea that he is
racially different. Let the Jew keep all his traditions.
After this, Henry Ford, who dictated the content of the series of articles, and William
Cameron, the recorder and editor enumerate some recommendations, which could establish
the harmonic relationship between Jews and non-Jews, based upon mutual respect. These
recommendations are the following:
But let him shed his false notion of “the Jew against the world”!
Let him shed his false program of breaking down Christendom by the infiltration of
Orientalism into business, art, entertainment and the professions.
Let him abolish the false ideal that it is an honor to Jewry to save a guilty Jew from the
common law, and a disgrace to Jewry to see a guilty Jew punished by the common law.
Let him draw up notice on all the Jews of the United States who by hook or crook are
sowing vile seed in society, that the Jewish community charges itself with their misbehavior
and will use methods well known to Jews to bring that misbehavior to an end.
The fifth recommendation of the authors is: Let the Jew end forever the disgrace of an
anti-defamation committee which grows frantic over innocent remarks on the part of
“Gentiles”, and is absolutely indifferent to the misdeeds of thousands of Jews who do more
damage to the Jewish name than all the “Gentile” critics and newspapers could do in twenty
years. No one can give the Jews a bad reputation but the Jews themselves.
The recommenders thought that most Jews who have given this matter a thought
would agree. A good deal of bad temper exists among them, no doubt, and it will be hard for
them to admit that anything The Dearborn Independent may contend for is right, but the idea
here expressed, when divorced from this paper, does command respect from many Jews. After
this, the authors ask the question: Is it possible for an additional number of Jews to catch the
thought that this series of articles cannot be so easily explained away – we are not referring to
the contents now, but to the fact that these articles exist at all – as being the creation of
prejudice, or hatred or vindictiveness or ignorance? Suppose these articles should be truly a
sign of the times for American Jewry! Suppose they offer a warning word, however
unwelcome, and a light, however undesired, which it would be most unwise for Jews to
ignore.
Suppose the set time has now come for the Jews to quit their attitude of attacking
everyone who shows them the truth, and to profit by this report of the poor figure they cut in
American life today. The enemies of the Jews are those who defend them for the pay of hire
or praise or votes. The real enemies of the Jews are those who bespeak them fair to their faces
and express quite different thoughts behind their backs. The enemies of the Jews are those
who encourage them to take an attitude that they cannot hold in America. They are hired
friends, false friends, incapable of realizing for a moment what this whole Jewish Question
means. The friends of the Jewish people today are those who will speak the surgical truth to
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him, braving his fury in the knowledge that the future will justify the word. The Jewish
leaders’ opposition to The Dearborn Independent rises mostly from the fear that the Jews may
read it! The Jews have read it, and they have not found hatred, they have not found abuse and
calumny, they have not found ignorance and malice.
They have found statements of fact calmly set forth, not to arouse hatred among the
non-Jews, but to arouse a sense of social responsibility among the Jews. The cited study
emphasizes, in the end, that the emergence of the Jewish Question is a part of the culmination
of destiny that has come upon not only the United States, but upon the world civilization, not
for harm but for good. The Jewish community, each and every Jew, must realize that the
world has come to a new beginning. The justification of a discussion of the Jewish Question is
the good of the Jews. Nevertheless, it seems that the greatest present obstacle to that good is
the Jews themselves. The time is here when they shall see it, as soon as possible, in their own
interest.
Walter White’s interview with Harold Wallace Rosenthal in
1976
In 1978, a brochure-size booklet was issued in the United States, which contains the
text of a sincere sounding interview consisting of two parts. In it, the publisher of the booklet,
Walter White Jr. had a talk with Harold Wallace Rosenthal, who was the victim of a
hijacking attempt made by terrorists in Istanbul, two years earlier, in 1976. The Anti-
Defamation League of B'nai B'rith, which can be considered a Zionist organization, asserts
that the tapes presented by Walter White Jr. are fake. They support this statement with the
argumentation that White could not explain properly why he published the talk recorded on
tape only two years later, in 1978. These two years can be considered extremely important
because, as we have already referred to it, Harold Wallace Rosenthal lost his life in the course
of a passenger plane hijacking attempt in Istanbul, on 12th
August 1976. According to the
news, a firing took place between the hijackers and the Israeli security officers on the Israeli
plane heading for the Turkish capital, and Rosenthal fell victim to the shooting.
Walter White, the interviewer, revealed, with a thorough research work, that the lethal
bullet did not hit H. W. Rosenthal on the plane. (By the way, four people died and thirty
were wounded in the firing.) According to White, Rosenthal was killed by his brothers of
communion on the airport of Istanbul. After his death, the American Jewish Committee in
Washington immortalized his name by establishing the foundation offering the professional
fellowship called “The Harold Wallace Rosenthal Fellowship in International Relation”. The
first honorary chairmen of the foundation were Walter F. Mondale (Vice-President of the
United States during the presidency of Carter) and Senator Jacob K. Javits of New York. H.
W. Rosenthal was a senior aide to the latter. As for ourselves, we would only like to add that
the findings of Walter White Jr. were not totally unusual. Who studies the works of Jewish
scientists written about Zionism, can know that there are such circles which consequently
defend the Talmudist Zionism from being exposed by non-competent persons.
The subject of the interview, Harold Wallace Rosenthal, is presented authentically by
Henry Makow in his article published on 15th
February 2004, which can be read even today
on the internet homepage of this excellently prepared Canadian researcher. Harold Wallace
Rosenthal, aged 29in 1976, was the personal assistant to New York Senator Jacob Javits. The
talented and well-informed Rosenthal felt that Jewish power was so unassailable that he could
make some extra cash by sharing his knowledge with Walter White Jr., the editor of the
Conservative monthly Western Front.
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In the interview, as we will be able to read later, he puts it this way: "Too many Jews
do not have the guts to tell you how we live and plan, but I am not intimated by anything or
anyone,"
Later Rosenthal told White: "It is too late for your Christian followers to put up a
defence. That time is long past. Long, long ago we had to become the aggressors! That is
undoubtedly one of our great purposes in life. We are aggressors!"
This shocking interview, published in full length below, contradicts the general
presentation – spread mostly after WWII – according to which the Jews are always victims,
and are not responsible for the bad things that happen to them. Benjamin Freedman, the New
York financier, and Christian Georgievitch Rakovsky, the Trotzkist Bolshevik have also
described similarly the real forces directing the world.
Makow is on the opinion that Rosenthal, who presumably was a gambler, needed
gambling money urgently, and wanted to get it by selling the carefully hidden information.
But his candor cost him his life. Also Makow refers to the foiled skyjacking on the plane
heading for Istanbul. He mentions that Walter White concluded that the incident was a cover
for Rosenthal's murder.
The reader himself can perceive that the mercilessly sincere toned interview can even
be called virulently anti-Semitic. Both talking men characterize this world conspiracy as
"Jewish" and make many superficial and racist generalizations. Makow, who is already
counted to be a considerable and reliable researcher of the background power, pointed out
that, in fact, "the Jews" are really the Rothschilds and a few hundred banking families and
their non-Jewish allies who were transformed into a group of interest acting more or less
systematically by their common occult beliefs, the global money cartel held in their hands and
intermarriage. The vast majority of Jews – like other people – are unaware of the fact that
there is an organized private power executing a common global strategy, which can even be
considered a world conspiracy. And they even would oppose it if they were. Jews are as much
its unwitting dupes and victims as anyone else.
It is a historical fact that the founder of the Rothschild dynasty played a key role in
setting up the secret society of the Illuminati in 1776. The confessed goal of this secret society
led by Adam Weishaupt was to subvert the Christian basis of Western Civilization. They
allied with the freemasonic organizations and took over their leadership in order to infiltrate
the highest social circles and state institutions. Repeating words like "freedom," "equality"
and "fraternity”, they wanted in fact to annihilate the family, race, religion, and nation and
melt them into a malleable anonymous mob.
Their goal is to create a centrally controlled world police state, served also by the
global strategy now called "globalization". This has not only financial and economic aspects,
but it also includes, in America, those measures, which restrict the human rights and freedoms
guaranteed in the Constitution ("The Patriot Act") and the expanding global empire strategy
characterized best by "The War on Terror".
Rosenthal offers an insight into the well-disguised “Jewish” world strategy. According
to him, that part of the “Jews" (Levites, Pharisees, Talmudists, Cabbalists, Zionists) who have
strived to build an earthly empire by rejecting Christ's vision of a spiritual kingdom based on
the commandment that you should love thy neighbor as thyself and you should do onto others
as you would have done to you. Because this is the true brotherly love. The Cabbalist bankers
plan to govern the world – at least spiritually – from Jerusalem according to their own
interests.
Rosenthal says the Jewish religion is essentially a disguise for the racial imperative
that sounds as follows: "We can live among other people and states [by] persuading them that
the Jews are not a distinct people but the representatives of a religious faith..." The "Jewish"
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power, more exactly the Illuminati power, was created through the control of the monetary
system.
H. W. Rosenthal offers an insight into the inner invisible world of Jewry. He reveals
the modes and tactics Jews have used in oppressing and destroying Christian civilization and
covertly attaining total control over the social and state life. The result has been a hidden
tyranny. The question arises again: How could such a relatively small number of Jews enslave
so many people and gain such an overwhelming control over their governments, especially
without their being aware of it? The answer to the fact that they are always able to prevail in
the world is that they do not follow Christ’s commandment to love their neighbors as
themselves. They follow their own rules, and allow themselves to do things that the forbid to
others. As Christ said in his parable of the unjust steward, which represents Jewry: "For the
children of this world are in their generation wiser than the children of light." (Luke 16:8)
In other words, the “Jews”, applying a double standard, can attain, of course, financial,
economic and other successes more easily, and can even exert the power more easily than
those who strictly keep the rules preserving different moral, legal and other Christian
traditions. Namely, the Jew, with his worldly mind set, is wiser than God's children, the
Christian people, even according to Jesus. From the answers of Rosenthal, the learning of this
statement will come to light. This is why Christ had instructed us to "be wise as serpents".
(Matthew 10:16)
We can witness that the money rule world order releasing the unscrupulous selfishness
has pushed our civilization in a deep crisis. The mankind, for the sake of its survival, cannot
avoid solving those political, economic, moral and social problems which threaten the
civilization with destruction. As Edmund Burke, the Irish-born British philosopher and public
personality, highly appreciated also by Diderot and Kant, stated: "The only thing necessary
for evil to triumph is for good men to do nothing."
For the sake of solving those serious problems that the human civilization is facing
today, first of all an accurate diagnosis, a quick recognition of situation, the seizing of the
essence of the problems and a brave action is needed. We can stand up effectively against the
destructive world force only if we understand the goals of this world force and its strategy
elaborated to reach these goals. This booklet might help provide the reader with that
understanding.
The first part of Walter White’s interview with Harold Wallace
Rosenthal
Mr. Rosenthal started the conversation saying: "We Jews continue to be amazed with
the ease by which Christian Americans have fallen into our hands. While the naive Americans
wait for Khrushchev to bury them, we have taught them to submit to our every demand."
Asked how a nation could be captured without their knowing it, Mr. Rosenthal
attributed this victory to absolute control of the media. He boasted of Jewish control of ALL
NEWS. Any newspaper which refused to acquiesce to controlled news was brought to its
knees by withdrawing advertising. Failing in this, the Jews stop the supply of news print and
ink. "It's a very simple matter”, he stated.
Asked about men in high political office, Mr. Rosenthal said that no one in the last
three decades has achieved any political power without Jewish approval. "Americns have not
had a presidential choice since 1932. Roosevelt was our man; every president since Roosevelt
has been our man."
When the U.S. foreign policy was mentioned, he said: “The American stupidity in
failing to see through the entire scope of Kissinger's foreign policy. It is Zionist-Communist
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policy from beginning to end. Yet the citizens think this Jewish policy will benefit America."
(…) "We Jews have put issue upon issue to the American people. Then we promote both sides
of the issue as confusion reigns. With their eye's fixed on the issues, they fail to see who is
behind every scene. We Jews toy with the American public as a cat toys with a mouse."
As the conversation went on into the late hours, one could sense that perhaps America
deserves the reign of terror being planned for her. The Jewish mind pits every ethnic group
against the other. "The blood of the masses will flow as we wait for our day of world victory",
Mr. Rosenthal said coldly.
For hours after this incredible discussion, a sense of inadequacy prevailed. Is it
possible that another group of "human being" could be so treacherous in spirit, so evil in
intent? Yet, the words heard and the evidence at hand are real. Is it possible that the American
people can remain docile, even while their life's blood is being drained from them? It seems
so. What does all this say to us?
Lots of things have already been written about the conspiracy of the World Jewry, but
this thing was revealed by nobody more openly than by Rosenthal. The fully thought-over
program is nearly astonishing…
Looking back to the time of this interview and having had time to analyze Harold
Rosenthal's candidness, we are compelled to think of him as a conceited, boastful yet very
knowledgeable person. At times his cruelty surfaced with a venom, especially as he describes
the “stupid Christians” or "goys" as he so often referred to "us." (The term refers not only to
Christians, but generally to non-Jews – J. D.) This surprised me because the word "goy" is not
in our language and he must have known this. His mind was thoroughly immersed in the One-
World Plan of World Jewry. With arrogance, he boasted that the Jew's conquest of the world
was almost complete thanks to Christian stupidity.
When asked if he was a Zionist, Mr. Rosenthal replied: "That's a hell of a question! At
the foundation of the issue the traditional Zionist concept of aliyah, a Hebrew term meaning
the 'in gathering' or return of Diaspora (dispersed) Jews to the Palestine homeland. Ever
since 1948 and the creation of the State of Israel, aliyah has become a basic imperative of
Israeli government policy."
I asked: What is Zionism?
Mr. Rosenthal replied: "Our first leader, former Prime Minister David Ben-Gurion,
said that Zionism without a 'return to Zion' is phony. Not many American Jews migrate
permanently to Israel. Some say that all Jews, by definition, are Zionists. Others say that a
Jew is not a Zionist unless he's a member who pays dues to an actively Zionist organization.
Definitions have been tossed everywhere since the Jewish homeland became a reality."
I continued: Millions of tax-exempt American dollars are sent to Israel yearly and we
true American do not like this.
Mr. Rosenthal replied: "The naive politicians in Washington are gullible. Most of them
are not to bright so the powerful Jewish lobbyists influenced this practice years ago and there
is no one strong enough to stop it. Some of the money is even returned to the United States
and spent on Zionist propaganda efforts, much of it through the B'nai B'rith and the
Conference of Jewish Organizations and the World Jewish Congress. The Jewish Agency is a
funding arm, a sort of body of B'nai B'rith officials. There is nothing wrong with sending
American dollars to Israel tax-free so long as we are smart enough to get away with it. Let's
reverse this conversation for a minute. You made it clear and quite vociferously, that you
don't like Jews. Why do you hate us?"
I replied: Mr. Rosenthal I do not hate anybody. I said I hate what the Jews are doing to
us and especially as it relates to any and everything related to Christianity. I hate their deceit,
trickery, cunning and their detestable dishonesty. Does that make me anti-Semitic? If it does
then I am anti-Semitic!
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"Anti-Semitism does not signify opposition to Semitism. There is no such thing. It is an
expression we Jews use effectively as a smear word used to brand as a bigot, like you guys,
anyone who brings criticism against Jews. We use it against hate-mongers. During Christ's
time, the Jews were seeking a material and earthly kingdom but Christ offered the Jews a
spiritual kingdom. This, they could not buy, so they rejected Jesus Christ and had him
crucified."
I asked: What do you mean had him crucified? Doesn't history prove that the Jews
crucified Jesus Christ?
To which he answered: "Yes, I guess they did. I don't beat around the bush but 2,000
years ago your people would have done the same thing to a man who mistreated them as
Christ did the Jews."
You speak of Jesus Christ as merely a man.
"That's all he was a man who walked on the Earth like any other man and this myth
about Christ rising from the dead and returning to Earth to visit with his disciples is a bunch
of crap. The Jews who drove the Arabs out of Palestine did so to disprove Christ's mission for
a spiritual kingdom. You see, instead of a leader who would make an empire for the Jews,
your kind of people gave the Jews a peaceful preacher called Christ who instead of an eye-
for-an-eye turns the other cheek. Rubbish! We are building and, in fact, have built an earthly
empire without your kind and your disappointing Messiah."
I can see that it is you and your kind who try to get Christ out of Christmas. I feel
sorry for you...
He quickly replied: "Don't give me that shit. I don't want your pity. I don't need it! Too
many Jews do not have the guts to tell you how we live and plan, but I am not intimidated by
anyone or anything. I know where I'm going."
When we asked why do Jews frequently change their names, he said: "Jews are the
most intelligent people in the world so if it benefits them to change their name they do so.
That's all there is to it. They mix in your society, which is plenty corrupt so while the Jews are
benefiting themselves the dumb goy doesn't realize that these Jews with non-Jew names are
Jews. I know what you are thinking about Jews in government who use non-Jew names. Well
don't be concerned because in the foreseeable future there will be no Presidential power in
the United States. The invisible government is taking strength in that direction."
To your knowledge, are the Jews in Russia really persecuted or are they given any
kind of freedom?
To which he said: "Most Jews throughout the world I'd say more than 90%, know
what is really happening to our people. We have communication unequalled anywhere. It is
only the jerks, the ignorant and misinformed and degenerates who can find peace in your
society and you bastards hide your sins by donning sheep's clothing. You are the hypocrites
not the Jews, as you say and write about. To answer your question in Russia, there are two
distinct governments one visible and the other invisible. The visible is made up of different
nationalities, whereas the invisible is composed of all Jews. The powerful Soviet Secret Police
takes its orders from the invisible government. There are about six to seven million
Communists in Soviet Russia, 50% are Jews and 50% are gentiles, but the gentiles are not
trusted. The Communist Jews are united and trust each other, while the others spy on one
another. About every five to six years the secret Jewish Board calls for the purge of the party
and many are liquidated.”
When asked "why"? he said: "Because they begin to understand too much about the
Jewish secret government. Russian Communists have a Secret Group Order which consists of
Jews only. They rule over everything pertaining to the visible government. It was this
powerful organization that was responsible for the secret removal of the center of
Communism to Tel Aviv from where all instructions now originate."
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Does our government and the United Nations have knowledge of this?
He replied: "The United Nations is nothing but a trap-door to the Red World's
immense concentration camp. We pretty much control the U.N."
When asked why the Communists destroy the middle class or educated and their entire
families when they invade a country Mr. Rosenthal replied: "It is an established rule to
destroy all members of pre-existing government, their families and relatives, but never Jews.
They destroy all members of the police, state police, army officers and their families but never
Jews. You see, we know when a government begins to search for the Communists within its
borders they are really attempting to uncover Jews in their area. We'er not fooled! The
invisible rulers in the Communist countries have a world control over the propaganda and the
governments in free countries. We control every media of expression including newspapers,
magazines, radio and television. Even your music! We censor the songs released for
publication long before they reach the publishers. Before long we will have complete control
of your thinking."
The way you boast, if this is true, it is frightening to think about our future, and that of
Christianity.
To which Mr. Rosenthal said: "There will be a forced class warfare here in the United
States and many will be liquidated. You will unquestionably be among them. The Jews will
not be harmed. I'm not boasting! I'm giving you the facts! And it is too late for your Christian
followers to put up a defense. That time is long past. Long, Long Ago we had to become the
aggressors!! That is undoubtedly one of our great purposes in life. We are aggressors!!
Because you stole your pretended religious beliefs from our Talmud."
After reminding him that we thought he was intelligent but now realize that he doesn't
know what he was talking about he replied: "Judaism is the unequaled culture -- with nothing,
nothing anywhere in the world to compare with it. Your so-called Christianity is an outgrowth
of Judaism. The cultural and intellectual influence of Judaism is felt throughout the entire
world -- yes, throughout civilization."
When I asked whether he thought we faced a problem eventually with the Blacks
because of their startling population increase he said that the Blacks are helping to serve “our
purpose” which might mean several things. We discussed the Black invasion of city, county
and state and their prominence now in television. Also how ridiculous it is for Blacks to
become converted to Jews – like Sammy Davis for instance.
Mr. Rosenthal replied: "That doesn't mean anything. We know that a Black cannot
become a Jew and that Sammy Davis is still Black. It may have been to his advantage to
become converted. In reality he still remains a nigger and not a Jew."
I told him of my in-depth study of the Jews and about my unpleasant discoveries,
reminding Mr. Rosenthal that there is no morality among Jews.
He replied: "Money is more important than morality. We can accomplish anything
with money. Our people are proving that in Israel where its strength against attack is its
permanent state of war readiness. Israel can now win in any encounter. The kibbutz-raised
intellectual elements are going to build that small country into a mid-east wonderland. It will
also eventually be the base for World Government Headquarters."
We discussed the tragedy of Watergate and corruption at all levels of government and
suggested that government representatives practice more openness and candor in dealing with
the people.
Mr. Rosenthal said: "What good would it do? What the hell does the public know
about the running of government. The great majority are asses – horses asses!!"
May we quote you on that?
"I don't care: what you do – as I said, few have the guts to speak out. We would all
have better understanding between each other –Jews and gentiles – if we spoke out more
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openly. Your people don't have guts. We establish your thinking – we even place within you a
'guilt complex' making you afraid to criticize Jewry openly."
The Jewish belief and religion
When the talk arrived to this topic, it became clear for White that a contemporary
fellow, informed over the average, revealed sincerely his hidden thoughts to him. In the
quietness of this enlightening conversation it became clear that the understanding poured forth
did not come from a novice. Mr. Rosenthal was asked how Jews gain acceptance so easily
among other races.
His answer was long and thorough. "At a very early date, urged on by the desire to
make our way in the world, Jews began to look for a means whereby we might distract all
attention from the racial aspect. What could be more effective, and at the same time more
above suspicion, than to borrow and utilize the idea of a religious community? We've been
forced to borrow this idea from the Aryans. We Jews never possessed any religious institution
which developed out of our own consciousness, for we lack any kind of idealism. This means
that a belief in life beyond this terrestrial existence is foreign to us. As a matter of fact, the
Talmud does not lay down principles with which to prepare the individual for a life to come,
but furnishes only rules for a sumptuous life in this world. It is a collection of instructions for
maintaining the Jewish race and regulating: intercourses between us and the goy. Our
teachings; are not concerned with moral problems, but rather with how to 'get.' (…) We are
the best example of the kind of product which religious training evolves. Our life is of this
world only and our mentality is as foreign to the true spirits of Christianity as our character
was to the Founder of this new creed 2,000 years ago. The Founder of Christianity made no
secret of his estimation of the Jews and the fact that he was not one of us. When he found it
necessary he drove us out of the temple of God, because then, as always, we used religion as
a means of advancing our commercial interest. But at that time, we managed to nail Jesus to
the cross for his attitude towards us; whereas, the modern Christians enter into party politics
and in order to win elections, they debase themselves by begging for Jewish votes. They even
enter into political intrigues with us against the interests or their own nation. We can live
among other nations and states only as long as we succeed in persuading them that the Jews
are not a distinct people, but are the representatives of a religious faith who, therefore,
constitute a 'religious community,' though this be of a peculiar character. As a matter of fact,
this is the greatest of our falsehoods. We are obliged to conceal our own particular character
and mode of life so that we will be allowed to continue our existence as a parasite among the
nations. Our success in this line has gone so far that many believe that the Jews among them
are genuine Frenchmen, or Englishmen, or Italians, or Germans who just happen to belong to
a religious denomination which is different from that prevailing in these countries. Especially
in circles concerned with government, where the officials have only a minimum of historical
sense, we are able to impose our infamous deception with comparative ease. Therefore, there
is never the slightest suspicion that we Jews form a distinct nation and are not merely the
adherents of a 'confession.' Though one glance at the press which we control ought to furnish
sufficient evidence to the contrary, even for those who possess only the smallest degree of
intelligence."
What did Rosenthal say about money power?
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When questioned about the ways in which the Jews have gained power, Mr. Rosenthal
said:
"Our power has been created through the manipulation of the national monetary
system. We authored the quotation. 'Money is power.' As revealed in our master plan, it was
essential for us to establish a private national bank. The Federal Reserve system fitted our
plan nicely since it is owned by us, but the name implies that it is a government institution.
From the very outset, our purpose was to confiscate all the gold and silver, replacing them
with worthless non-redeemable paper notes. This we have done!"
When asked about the term 'non-redeemable notes,' Mr. Rosenthal replied:
"Prior to 1968, the gullible goy could take a one dollar Federal Reserve note into any
bank in America and redeem it for a dollar which was by law a coin containing 412 1/2
grains of 90 per cent silver. Up until 1933, one could have redeemed the same note for a coin
of 25 4/5ths grains of 90 per cent gold. All we do is give the goy more non-redeemable notes,
or else copper slugs. But we never give them their gold and silver. Only more paper," he said
contemptuously. "We Jews have prospered through the paper gimmick. It's our method
through which we take money and give only paper in return."
Can you give me a example of this?
"The examples are numerous, but a few readily apparent are the stocks and bonds
market, all forms of insurance and the fractional reserve system practiced by the Federal
Reserve corporation (the possibility of financing the banks with partially covered money – J.
D.), not to mention the billions in gold and silver that we have gained in exchange for paper
notes, stupidly called money. Money power was essential in carrying out our master plan of
international conquest through propaganda."
When asked how they proposed doing this, he said:
"At first, by controlling the banking system we were able to control corporation
capital. Through this, we acquired total monopoly of the movie industry, the radio networks
and the newly developing television media. The printing industry, newspapers, periodicals
and technical journals had already fallen into our hands. The richest plum was later to come
when we took over the publication of all school materials. Through these vehicles we could
mold public opinion to suit our own purposes. The people are only stupid pigs that grunt and
squeal the chants we give them, whether they be truth or lies."
Mind control and conditioning
To White’s question asking whether the Jews ever felt any threat from the part of the
“silent majority”, Rosenthal answered the following, with a condescending smile:
"There is no such thing as the silent majority because we control their cry and hue.
The only thing that exists is an unthinking majority and unthinking they will remain, as long
as their escape from our rigorous service is the opiate of our entertainment industry. By
controlling industry, we have become the task masters and the people the slaves. When the
pressure of daily toil builds to an explosive degree, we have provided the safety valve of
momentary pleasure. The television and movie industries furnish the necessary temporary
distraction. These programs are carefully designed to appeal to the sensuous emotions, never
to the logical thinking mind. Because of this, the people are programmed to respond
according to our dictates, not according to reason. Silent they never are; thinking they will
remain."
Continuing his thought of Jewish control over the goy, Mr. Rosenthal said:
"We have castrated society through fear and intimidation. Its manhood exists only in
combination with a feminine outward appearance. Being so neutered, the populace has
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become docile and easily ruled. As all geldings in nature, their thoughts are not involved with
the concerns of the future and their posterity, but only with the present toil and the next
meal,"
Manipulation of labour and industry
When this topic came to surface, it caused a well perceptible excitement in Rosenthal,
who said the following about this important issue:
"We have been successful in dividing society against itself by pitting labor against
management. This perhaps has been one of our greatest feats, since in reality it is a triangle,
though only two points ever seem to occur. In modern industry where exists capital, which
force we represent, is the apex. Both management and labor are on the base of this triangle.
They continually stand opposed to each other and their attention is never directed to the head
of their problem. Management is forced to raise prices since we are ever increasing the cost
of capital. Labor must have increasing wages and management must have higher prices, thus
creating a vicious cycle. We are never called to task for our role which is the real reason for
inflation, since the conflict between management and labor is so severe that neither has time
to observe our activities. It is our increase in the cost of capital that causes the inflation cycle.
We do not labor or manage, and yet we receive the profits. Through our money manipulation,
the capital that we supply industry costs us nothing. Through our national bank, the Federal
Reserve, we extend book credit, which we create from nothing, to all local banks who are
member banks. They in turn extend book credit to industry. Thus, we do more than God, for
all of our wealth is created from nothing. You look shocked! Don't be! It's true, we actually do
more than God. With this supposed capital we bring industry, management and labor into our
debt, which debt only increases and is never liquidated. Through this continual increase, we
are able to pit management against labor so they will never unite and attack us and usher in a
debt-free industrial utopia. We are the necessary element since we expend nothing.
Management can create its own capital – the profits. Its business would grow and profits
increase. Labor would prosper as well, while the price of the product would remain constant,
the prosperity of industry, labor and management would continually increase. We Jews glory
in the fact that the stupid goy have never realized that we are the parasites consuming an
increasing portion of production while the producers are continually receiving less and less."
Getting the control over religion
The interview continued in a relatively friendly tone, when Mr. Rosenthal expressed
his sincere opinion about different religions and the situation of churches.
"Religion, too, must be taught, and through this necessity we have labored. With our
control of the text book industry and the news media, we have been able to hold ourselves up
as the authorities on religion. Many of our rabbis now hold professorships in supposed
Christian theological seminaries. We are amazed by the Christians' stupidity in receiving our
teachings and propagating them as their own. (…) Judaism is not only the teaching of the
synagogue, but also the doctrine of every 'Christian Church' in America. Through our
propaganda the Church has become our most avid supporter. This has even given us a special
place in society, their believing the lie that we are the 'chosen people' and they, gentiles (i.e.
not the chosen – J. D.).
These deluded children of the Church defend us to the point of destroying their own
culture. This truth is evident even to the dullard when one views history and sees that all wars
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have been white fighting white in order that we maintain our control. We controlled England
during the Revolutionary War, the North during the Civil War, and England and America
during World War I and II. Through our influence of religion we were able to involve the
ignorant white Christians in war against themselves which always impoverished both sides
while we reaped a financial and political harvest. Anytime truth comes forth which exposes
us, we simply rally our forces – the ignorant Christians. They attack the crusaders even if they
are members of their own families.
Through religion we have gained complete control of society, government and
economics. No law is ever passed except its merits have previously been taught from the
pulpits. An example of this is race equality which led to integration and ultimately to
mongrelization. The gullible clergy in one breath instruct their parishioners that we are a
special, chosen people while in another breath proclaim all races are the same. Their
inconsistency is never discovered. So we Jews enjoy a special place in society while all other
races are reduced to racial equality. It is for this reason that we authored the equality hoax,
thereby reducing all to a lower level.
We have been taught that our current economic practices are benevolent therefore
Christian. These pulpit parrots extol our goodness for loaning them the money to build their
temples, never realizing that their own holy book condemns all usury. They are eager to pay
our exorbitant interest rates. They have led society into our control through the same
practice. Politically, they hail the blessings of democracy and never understand that through
democracy we have gained control of their nation. Their book again teaches a benevolent
despotic form of government in accordance with the laws of that book, while a democracy is
mob rule which we control through their Churches, our news media and economic
institutions. Their religion is only another channel through which we can direct the power of
our propaganda. These religious puppets' stupidity is only exceeded by their cowardice, for
they are ruled easily."
The picture is assembled and the connections are made clear
In the part to be presented now of the booklet published in 1978, Walter White
remarks:
“Rarely does any man confess the intimacy of his soul as did Mr. Rosenthal. Hindsight
suggests that there was a greater Force compelling this man to reveal what has been written
here. The remainder of the interview seems to confirm this.”
"Since we do not believe in a life after death, all our efforts are directed to the 'now.'
We are not as foolish as you and will never adopt an ideology that is rooted in self-sacrifice.
Whereas you will live and die for the benefit of the community, we will live and die only for
our own individual self. The idea of self-sacrifice is abhorred by Jews. It is abhorrent to me.
No cause is worth dying lot since death is the end. The only time we unite is to preserve our
individual selves. As a group of wolves unite to attack a prey, but then disperse after each is
filled, so we Jews unite when peril is pending, not to preserve our community but to save our
own skin.
This attitude permeates our entire being and philosophy. We are not the creators for
to create would only benefit another. We are the 'acquirers' and are interested only in
satisfying the 'self.' To understand our philosophy understand the term 'to get.' We never give
but only take. We never labor but enjoy the fruits of others' labor. We do not create but
confiscate. We are not the producers but the parasites. We can physically live within any
society, but always remain spiritually apart. To work would be to produce and the highest
form of that labor would be to create. Your race has always worked for the satisfaction of
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what it produces. We would never work for anyone's benefit, only for what we can get. We
have used this Aryan attitude to achieve our greatest prosperity. You will work for the
enjoyment you derive out of producing, while never being concerned about the pay. We take
your productivity for a paltry fee and turn it into fortunes.
Until recently, the pride of workmanship exceeded the quest for high incomes.
However, we have been able to enslave society to our own power which is money, by causing
them to seek after it. We have converted the people to our philosophy of getting and acquiring
so that they will never be satisfied. A dissatisfied people are the pawns in our game of world
conquest. Thus, they are always seeking and never able to find satisfaction. The very moment
they seek happiness outside themselves, they become our willing servants.
Your people never realize that we offer them only worthless baubles that can not bring
fulfillment. They procure one and consume it and are not filled. They procure one and
consume it and are not filled. We present another. We have an infinite number of outward
distractions, to the extent that life can not again turn inward to find its definite fulfillment.
You have become addicted to our medicine through which we have become your absolute
masters.
On the first and fundamental lie, the purpose of which is to make people believe that
we are not a nation but a religion, other lies are subsequently based. Our greatest fear is that
this falsehood will be discovered, for we will be stamped out the moment the general public
comes into possession of the truth and acts upon it. It is becoming apparent that an
awakening is occurring even here in America. We had hoped that through our devastation of
Christian Germany that any subject dealing with us would be a fearful taboo. However, there
seems to be a resurgence here in the one nation that we so strongly control. We are presently
making plans for a rapid exodus. We know that when the light begins to dawn, there will be
no stopping it. All efforts on our part will only intensify that light and draw focus upon it.
We fear that light is coming forth in movements across this land, especially yours. It
has amazed us how you have been successful in reaching the people after we closed every
door of communication. This, we fear, is a sign of a coming pogrom that will take place in
America soon. The American public has realized that we are in control, which is a fatal
mistake on our part. This nation could never be the land of the free as long as it is the land of
the Jew. This is the revelation that will be our undoing.
The American people have been easily ruled through our propaganda that the pen is
mightier than the sword. We virtually get away with murder, and all the goy do is to talk
about it, which is ineffective since we, the masters of propaganda, always publish a
contradicting account. If the Aryan would review history and apply those lessons of the past,
then the pen will be thrown down in disgust and the sword wielded in the heat of passion.
Thus far, we have escaped the sword, when the only reprisal is some periodical of no repute,
or some pamphlet with limited circulation. Their pen is no match for ours, but our constant
fear is that they may open their eyes and learn that no change was ever brought about with a
pen. History has been written in blood, not with ink. No letter, editorial or book has ever
rallied the people or stopped tyranny. We understand this principle and are continually
propagandizing the people to write letters to the President, to Congress and to their local
media. We are safe to continually exploit, intimidate and disenfranchise the white American
as long as they are preoccupied with the illusion of educating the masses through printed
material. Woe be unto us if they ever see the futility of it, lay down the pen and employ the
sword.
History confirms the fact that the passions of an aroused minority, no matter how
small a group, have exerted enough power to topple the greatest empire. The movements that
control destiny are not those that rest on the inactive majority; but on the sheer force of an
active minority. Will is power, not numbers, for a strong Will will always rule the masses!"
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Again, we are safe as long as our Will is stronger, or the Will of the people is misdirected,
scattered and without leadership. We will never be deposed with words, only force!"
The second part of Walter White’s interview with Harold Wallace
Rosenthal
The second part of the booklet The Hidden Tyranny begins with a quotation:
"Most Jews do not like to admit it, but our god is Lucifer."
The above is an exact quote of Harold Wallace Rosenthal, former top Administrative
Aide to the then New York Senator Jacob Javits until 1980. The interviewer starts the second
part of the interview with the following statement:
“I, Walter White, Jr., for the past 17 years Director and Editor of the monthly
conservative publication Western Front, was told about Mr. Rosenthal's boastings around
Washington, D.C., and I was encouraged to meet with him and to interview him (for a fee).
Mr. Rosenthal had stated publicly that the Jews will completely dominate throughout
the entire world – and that they control every facet of political life in America and every
aspect of the communication media. Eventually Mr. Rosenthal and l were brought together, at
which time I interviewed him privately and taped said interview with Mr. Rosenthal's
knowledge and consent. During the lengthy meeting Mr. Rosenthal became impatient, rude
and vulgar (all of which is recorded on the tape) and he sought the balance of his fee before I
had concluded my questioning.
Since the entire interview was so lengthy, in 1977 we released and published only the
first portion under the same title as above "The Hidden Tyranny”.
Copies of this manuscript (Part I) have been sought by people from all around the
globe. We now release the balance of the taped interview as Part Two. Although I do not wish
to digress, an Eastern analyst has told me that "The Hidden Tyranny" manuscript (Part I) has
had a pass-on readership of 3.5%. Thus, if true, the manuscript (Part I) has been read by more
than 7 million people. When this final portion (Part Two) begins circulating, its impact may
be even greater. It depends upon you, the reader.
Before any agreement was reached between us, I had established with Mr. Rosenthal
that he would answer an unlimited number of questions with complete honesty and to the best
of his ability. It was because of this understanding that I took issue with Mr. Rosenthal during
the final stages of the interview and accused him of not being honest with me as it related to
his response to my question: "Do you have knowledge of when and why the story began about
the Jews being God's chosen people?" That is when he said in part: "Most Jews do not like to
admit it, but our god is Lucifer – so I wasn't lying – and we are his chosen people. Lucifer is
very much alive."
As this goes to press, we still seek a governmental body to investigate Harold
Rosenthal's allegations. My dictionary conveys such allegations as "treason". We now pick up
after a dispute during which the tape recorder has been turned off. Obviously where the "W"
appears, those are my words. Where the "R" appears, that indicates comment.
W: Mr. Rosenthal, when true history is permitted to be published at large – when the
truth actually surfaces – what do you expect the people of the world will do to you Jews?
R: I thought we had concluded this interview.
W: I'm concerned – and this question seems to require your answer.
R: We were all finished White, and now you start to pump me again. I've already given
you the 'tables of stone' and yet you want more. Never mind -- you wouldn't understand
anyway – you Christians!!!
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183
W: So now you damn me because I'm a Christian. I thought we had tried to keep this
on a business-like basis did we not?
R: (Mumbled exclamation by Rosenthal!)
W: Whatever that is – or means, you're using words I've never heard before. Are you
speaking English?
R: I said -------.
W: Will you spell it?
R: (Rosenthal spells M-I-S-H-N-A-H and briefly says it is from the basics of the
Talmud). [The Mishnah is the earliest work of the Rabbinic literature that has been preserved.
Although not being a code, the Mishnah was considered a guideline by the later generations,
and it became the basis of the Halakhic traditions. The Talmud is the enlarged explanation of
the Mishnah, but it covers a larger sphere than the Mishnah. The studying of the texts of
Mishnah in a mourning family has become a habit due to the mystic traditions. – J. D.] Mr. R.
continues: Let's not dwell on this. We're not getting anywhere – besides we had concluded
things and that ends our agreement.
W: Are you afraid to answer the question I posed?
R: Who the hell do you think I am – I'm not afraid to answer any question but I've
given you enough information for a book.
W: Did I not pay you as per our agreement?
R: Yeah – sure – but again you're wanting more. All right, you want my opinion as to
what the people of the world are going to think when history is written.
W: Well, I didn't pose the question exactly like that, but go ahead.
R: I don't give a damn what the people will think. Besides, whenever that happens you
and I will be dead. Plain dead. Does that satisfy you?
W: There are two or three questions among my notes here Mr. Rosenthal which have
yet to be answered and one is quite important.
R: What is that?
W. The story about the six million Jews supposedly cremated or murdered by the
Nazis.
R: What about it?
W: Do you know who or what Jewish organization created that big lie?
R: No, I don't know anything about its authenticity. I don't think it's too important
anyway.
W: Mr. Rosenthal, you know better than that, What about the younger generation who
is growing up believing this big lie? And you say it's not important!
R: It was an outgrowth of the war and we all know that Hitler hated the Jews so
someone, somewhere, thought of exaggerating the number. We know that many, many Jews
were killed by the Nazis.
W: I'm sure you know that when World War II broke out there were less than a quarter
of a million Jews in all of Germany. Many thousands had already left Germany.
R: So what? As I said before, the Jewish people are the cleverest people in the world.
So somebody thought up a big number and perhaps it grew until now the number of Jews
killed is six million. We have control of the news media and that is the great difference.
Otherwise your people could tell your big lie.
W. Go you brush it off that lightly. Something of such enormity...
Mr. R. interrupted here saying – My people have been taught to give consideration and
attention to our teachers rather than to the words of your people and laws.
W: You're living in America, Mr. Rosenthal, It is our duty to uphold the laws of our
Country. Your religion teaches you that you may take an oath such as when being inducted
into political office -- and if the oath displeases you, you can deny silently the fact you have
Dr Janos Drabik
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taken that oath. Now I have copies of the Jewish document – called the Kol Nidre and I have
proven their authenticity. (The Kol Nidre ("all vows") is found in the Talmud book Nedarim
(Vows), and is recited each year in the synagogue on the Day of Atonement It allows all
future obligations. oaths or pledges a Jew may engage in to "be deemed absolved, forgiven,
annulled, and void, and made of no effect.") This allows Jews to lie, subvert, cheat, etc.
R: Well – all Jews don't practice that oath business, I'm sure.
W: But they do practice it, do they not – with the Rabbi's approval.
R: To some extent. Perhaps when it is helpful to the individual.
W: Is that not sinful?
R: Maybe to your way of thinking. I've told you -- you and I are different. We are
different people. Our beliefs are entirely different. We have been raised that way for many
centuries so it is not a sin for us to take any oath and break it. It's our teaching. (This point on
the difference of character has been made by many other Jewish writers and statesmen, and is
well supported in history and science. Yet, ironically, Christians continue to believe the
Jewish lie that "we are all the same" or "equal.")
W: I've possibly saved the most important question of all until now.
R: Listen, White, if you're going on any further, my time is money. We made an
agreement and you're extending it beyond reason. You have it all on tapes and remember that
we agreed for you to take whatever you want from the tapes and your notes -- but no
reproduction of the tapes under any circumstances. They are to be destroyed. If you violate
this White, we'll cut your balls off.
W: Who are “we”?
R: Just get smart and you'll find out. You don't want any trouble and I don't either.
You keep our agreement and no one gets hurt!! Now give me the rest of my money. Okay?
W: I intend to keep our agreement to the letter and you have my word of honor that
these tapes will not go any further than my use in the preparation of the story. There is no
misunderstanding. We agree on that and I'll keep my word. You'll get your money in a
minute.
R: I have friends White – I know a lot of people and I don't want them to be reading
things attributed to me that I didn't say. I don't give a damn what you or anybody else thinks –
but I don't want lies printed – only the questions and answers of this interview.
W: We understand each other perfectly in that regard, Mr. Rosenthal. Now, please,
this question!!
R: Shoot. But remember I need Las Vegas money.
W: Surely you must know somewhere in your schooling, or you have some kind of
personal feeling or understanding as to when and why the story began that the Jews are God's
Chosen People.
R: We are God's chosen people.
W: Do you really believe that Mr. Rosenthal?
R: Maybe I can explain or perhaps Jake could give you a better answer...
W: Who is Jake?
R: Jake Javits – you know, my associate. He's the man that I work for and he's a pretty
smart guy. Plenty smart. His answer might serve your purpose for the story better.
W: I want your answer!
R: . . . You and we actually have a different God.
W: Is that the answer to the Jews being God's chosen people?
R: To our god we are chosen ones. We are taught that from our childhood.
W: That is an evasive answer. You know what I mean when I pose such a question and
I don't believe your reply or your explanation.
R: Okay. I don't give a damn what you believe.
Dr Janos Drabik
185
W: Do your people believe that Jesus Christ was a Jew?
R: Hell! We're not going back to that again are we? We've already gone over that.
W: That was before the tape machine was ever turned on. I don't think we recorded
your reply to this question.
R: Well, I can't answer for all Jews. I guess you're asking what Jews throughout the
world believe?
W: Yes.
R: Jake could answer that better than I.
W: Please, I don't want Senator Javits' answer to anything. I want your answer.
R: White, I know what you're searching for. I've known from the beginning but that's
all right. You and we are so apart. You're another breed. You're not our kind. It's not secret
that we do not respect you, and of your kind. (Genesis 3:15).
W: Are you referring to just our kind as 'Christians'?
R: No, you gentiles – all of you are our enemies. When I was a little boy, just a kid,
very young, we were taught very wisely. Many centuries ago when the Jews were persecuted
in almost every country and driven out of so many countries – some of the governments, I
cannot remember exactly whether it was the government of France or Spain. Anyway, the
government demanded that the Jews must become Christians or be expelled from the country.
W: Yes, I recall reading of this many times.
R: Was it France or Spain.
W: Possibly both but I vividly remember the story of Queen Isabella of Spain -- how
patient she was with the Jews – always giving them the benefit of doubt – until such time as
her eyes were opened completely to the deceptions of the Jews. But please go on.
R: Anyway, the Jews at that time had a very wise Rabbi leader, a world leader, and his
advice was respected throughout the world. He said that the Jews must pretend to become
Christians and bide their time and make real sacrifices if necessary. We have always been
ready to sacrifice a few thousand Jews in exchange for world leadership. (This was the plan
of the Jews who instigated WW II. Some Jews were sacrificed so that the "persecution"
propaganda could continue.) It is a small price and there is nothing wrong with that. I was
taught that we Jews must become lawyers so we could control and strangle the courts, and
even the judges, unless they were Jews. We should become doctors and teachers and leaders
in all the churches -- and this goal has almost been fully accomplished.
I said it before and I'll say it now -- that we will have complete, I say complete control,
throughout the entire world possibly before I die. We are very successful in keeping you
gentiles confused. We create confusion. (The word Babylon in Hebrew is Babel and means
confusion. The Jews are masters at confusion because they are the ringleaders of the system
known as "Mystery Babylon.") You're not stupid White. You know that the Jews are successful
because of our unity. We die for one another if necessary. We generously finance our own, so
it is understandable how we govern not only in this country. We direct American foreign
affairs. We are the super government of the world. Is that enough?
W: Go on. I find what you are saying most interesting. Please go on.
R: We are the most powerful international body of people in the world! Do you believe
that?
W: You speak with such confidence that I . . .
Mr. R. interrupted – We can destroy any country's economy without their even being
aware of it – if we want to. I think this is what you want to hear. (Most Americans are totally
unaware that by the Federal Reserve system their money has been stolen and the economy
debauched.)
W: I'm expecting you to be truthful with me Mr. Rosenthal.
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186
R: Well, it's true. We're smart – we are powerful and at the proper time we will mix up
your gentile women with the Blacks and in 50 years you'll be all mixed up. Niggers love to
s…w your white women and we encourage it by using them to our advantage.
W: I recall your saying that the Blacks serve a purpose.
R: Yes, we will use them to a great advantage. (It was primarily by Jewish merchant
ships and Jewish-run slave auctions that the blacks got to America.)
W: And try to destroy them after you have used them I presume?
R: If necessary. Yes! You and I know they're inferior people, a dumb race, but can be
useful with the use of money. I mean real big money. Niggers will do anything for money. So,
when the time comes – and you might even live to see it – we will have that complete control
while you stupid Christians are waiting for your Christ, the impostor, to return as your
savior.
W: You sound bitter.
R: Not at all. Why should I be bitter? We are on top!
W: And when this whole sordid story becomes known, the result will be an aroused
citizenry – an angry citizenry who will want to destroy you.
R: How? I ask you how? You can't reach the people. We have it all under such control
that no one – no one or no-body can people unless it is done through our media control.
(Who has control of the mass media in the 20th century? – Chairman of ABC Leonard
Goldenson, President of CBS – James H. Rosenfield, Chairman of RCS – David Sarnoff,
Chief Executive of NBC – Fred Silverman, President of PBS – Lawrence Grossman,
Chairman of Time – Arthur Heiskell, Editor of U.S. News & World Report – Marvin Stone,
Chief Executive of Dow Jones – Warren H. Phillips, Editor of Newsweek – Lester Bernstein,
President of TV Guide – Walter Annenberg, President of New York Times – Sulzberger
family, TV program producer – Norman Lear – these and more all are Jews!!) We have it
sewed up!! We have infected your churches completely and we now control the school system
in the United States. It is a reality that we have complete control of organized Christianity.
Almost anywhere – completely.
W: I find so many things you say to be repulsive. The way you say things . . .
R: It's what you wanted to hear or you wouldn't have paid good money for this
interview.
W: So long as you are truthful with me – but you still haven't answered that question I
posed long back – do you believe that Jesus Christ was a Jew?
R: As I said, Jake could give you a really intelligent answer. I know that most of our
friends, kids and people I grew up with – in fact all of our friends – I'd say all of them, don't
believe Christ was a Jew. He was an impostor and millions of people all over the world now
believe that Christianity was founded on untruth and deliberate incorrect translations of your
Bible. Christ was a fraud. Even the National Council of Churches agree that there were false
translations of the book your people respect. It's built on lies. (This comment can hardly be
regarded as coming from a true Christian source since the National Council of Churches was
organized by Jews and its theology is controlled by them.)
W: According to the latest scholarly research, your ancestors are not Israelites but
Mongolians and Asiatics from Eastern Europe and Western Asia, so your ancestors were
thousands of miles from the Holy Land. They never, ever saw the Holy Land – proving that
your people were not the chosen people of God.
R: So what? What difference does it make?
W: We have been taught the big lie for many years that Jews are God's Chosen people,
so it does make a difference. A very grave difference.
R: What grave difference?
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187
W: Does it not prove that the great majority of Jews today are Khazar in origin. Your
ancestors never trod the lands where Christ walked. They never knew Jerusalem and Palestine
so how could . . . (Mr. R. interrupted)
R: (shouting) What the hell difference does it make now?
W: I find so many things that you have said as being repulsive and your arrogant
manner in boasting, as it were, to admittedly being a part of this gigantic . . . this heinous plot
against mankind -- and at times, you attempt to brush things off by saying 'what difference
does it make'. So much of what you have admitted staggers me, in fact, I lack the words . . .
(Mr. R. interrupts here).
R: That's because you're a gentile. You don't understand. You never will! Until it's too
late and my hope, personally, is that the American people do not... (Mr. R. paused here).
W: There is so much of what you have said, that as an individual, people may not
believe you – they may not believe this interview... (Mr. R. interrupts).
R: That is why we have the control today. One of the reasons. Your people did not
believe that it was possible for any people or race to accomplish what we have within a
couple of hundred years. The gentile is stupid. WE are intelligent. I am going to be a very
important person in and around Washington and soon. I intend to become nationally
prominent. You are going to hear and read about me in the future. I'm young and have had
the guts to tell you more than any other Jew would ever dare to tell you -- at least publicly.
I've stuck my neck out White. Some of what I have told you is part of the inner, invisible world
of Jewry.
W: Looking at you now as I denote your change, I see you as a despicable bastard – all
of you . . . (Mr. R. interrupts).
R: No one calls me a bastard and gets away with it!
W: You are all contemptible, base and detestable . . .
R: I'll knock your God damn head off if you call me a bastard . . .
W: I wouldn't try it if I were you. I too have friends, many of them would like a
chance to get to you so let's keep this on a formal basis as it was intended at the beginning.
(Mr. R. then said something which I asked him to spell. He spelled O-Y V-A-Y, Oy Vay, and
added oy vay iz mir, and when asked what it meant he said I would not understand, but I am
including it here because it is on the tape.) Many times when referring to a person being a
Jew, I have heard it said, 'Well, I understand he is a Presbyterian or a Catholic.' So, I would
like your opinion or explanation. How do Jews feel about another Jew who becomes a
Christian Scientist or converts to any other religion? Is he or she no longer a Jew?
R: That can best be answered – well let me put it this way. I don't know what your
mother and father were – what nationality I mean . . .
W: My father was British – English, and my mother was German.
R: Well, if you decided to study Zionism or the Talmud or actually wanted to become
converted and attended the synagogue would that erase your English or German heritage?
W: Of course not – but I wanted to hear it from a learned Jew. What you have said
then is that he or she is always a Jew.
R: It's stupid – stupid. We are what we are! No matter what we join or adopt it doesn't
change what we are. I am a Jew and nothing can change me because I take up another
religion. Such stupidity! (This concept is verified in Scripture by the rhetorical question: "Can
the Ethiopian change his skin, or the leopard his spots?" And in the parable of the Tares and
the Wheat we find that the Tares (the children of the wicked) are utterly destroyed. None are
saved from the destroying fire, none are converted into Wheat. God is not going to change the
tares into something they never were.)
W: But the Jews are a great part of this deceit.
R: We have a talent for confusing your issues.
Dr Janos Drabik
188
W: You are masters of deceit and this cunning practice of yours has allowed your
people to infiltrate the governments throughout the world.
R: Why not? Why shouldn't we take over the banks, the universities, the church and the
government if the gentiles are not intelligent enough to run them? I could not have talked this
way a few years ago but now it is different. There is nothing to undo our strategy in the world
today so I can speak much more freely. What I've disclosed may help other Jews to speak out
if they have any guts. We are not a pusillanimous race.
W: You're very sure of yourself and your people aren't you?
R: We may be divided in many things, but nothing ever actually separates us.
W: Who is we?
R: My people, the Jews are 'as one' when it counts most. No incident can ever divide
us. (Down throughout the centuries Jews have learned they cannot trust other people. Thus,
the Jewish racial bond is their greatest bond.)
W: I have heard Jews fight each other with venom!
R: Ahh, that's entirely different. Sure we will fight one another but as I say, when it
counts most we're 'as one'. Our forte White is division and duplicity. It is an infallible weapon
and we are skillful – perhaps perfectionists in its application. You don't have the intelligence
to compete.
W: But we have a culture that you Jews will never understand or equal.
R: Jews have a family life. Our culture requires a high standard in education. We
establish standards so that our kids exceed that of their parents. Our people continue to show
a dramatic educational advancement. Our kids' success doesn't depend entirely on schools
but on the family and we are damn proud of these accomplishments. You can't compete! More
than 12,000 doctors are graduated from medical schools in the United States every year and
almost 10,000 of them are Jews. Among the law students the Jewish percentage is even
higher. Jews are on such a solid foundation here in the United States that any kind of
opposition to our control would only be temporary. You know we laugh about the, six million
story just like the story that Christ was a Jew and the God's Chosen People story. This should
show people that we have a solidarity like none other in the world. Jews have a closeness to
other Jews whom they have never seen or perhaps even heard of. (As it is said – "Blood is
thicker than water.")
W: Mr. Rosenthal, I hope you haven't lied to me in any of this interview because if
you did we could retaliate on you. Understand?
R: What I have told you is true – all of it. I don't need to lie.
W: I have found the Jews' passion is greed, profit and the destruction of Christianity.
Am I correct?
R: I cannot speak for all Jews.
W: I'm speaking of the great majority of Jews. Am I right?
R: Maybe most Jews feel that way – but there's nothing wrong with that!
W: I think you just go on and on because there is a bitterness within you and perhaps
you say things that even you do not believe. Some of the things you say are almost
unbelievable.
R: Well I don't give a good God damn what you believe. I've given you honest answers
and opinions. Now no more questions. And don't forget our agreement – if I learn that the
tapes are used other than what we agreed upon you will suffer serious consequences. Do you
understand?
W: I understand. And now Mr. Rosenthal, here is the balance of the money agreed
upon for this interview.
(This is the end of the recording.)
Dr Janos Drabik
189
After the tape machine had been turned off, White accused Harold Rosenthal of not
living up to our agreement in replying truthfully to my question as to the Jews being God's
Chosen people. He replied:
"We are god's chosen people . . . Most Jews do not like to admit it, but our god is
Lucifer – so I wasn't lying – and we are his chosen people. Lucifer is very much alive."
White was stunned and had no further comment. He had watched this arrogant,
boastful person change at times like a chameleon that changes its color. Many times he
showed a hatred – yes, even a venom. At the conclusion, White felt bad, even unclean being
around him. Much of what Harold Wallace Rosenthal said brought to the surface a reality
White and his fellows have known all along. But this "Jewish" treachery was more shocking
when getting it all in one package. It has been alleged that Harold Rosenthal was killed
because he talked too much. If all he said was true, this explanation may even sound real.
In the following, White related how they tried to minimize Rosenthal’s boastings of
their control of our churches, which seemed unbelievable at the time of the interview. But
later, in the autumn of 1983 it became a reality that the U. S. Supreme Court sanctioned IRS
approved State Churches. At that time, White already saw that Organized Jewry was
determined to strengthen control over the operation of Christian churches via taxation and
other regulations. The editor of the Western Front magazine finally came to the conclusion
that: “The enemy is not coming. The enemy is here. War has been declared on Christianity,
churches, religious freedoms, the true American Way, and the white race.”
The Zionist power structure in the America of our days
The organizational structure and operation of the Zionist power was analyzed by
sociologist James Petras, Professor Emeritus of the Binghamton University and the New
York State University, in his article titled Bended Knees: Zionist power in American Politics
(20 December 2009, http://www.informationclearinghouse.info/article24236.htm). He
assessed, with the accuracy of the scientist, logically and sophisticatedly, all that Harold
Wallace Rosenthal spoke about only vaguely and unsystematically, as White, the interviewer,
asked him his questions. Professor Petras calls the hierarchy of the Organized Jewry, which is
built in deeply into the political system of the United States, Zionist Power Configuration, or
ZPC. In his analysis, he starts from the claims by the ZPC that it represents Jewish opinion
and values as well as its authority to speak for the interests of the American people. The 51
Presidents of the Major American Jewish Organization (PMAJO) claim to speak for all Jews
in the US.
Petras found that near majorities of young people of Jewish ancestry do not identify
with Judaism and are critical or indifferent to Zionist appeals for Israel. A small, but vocal,
group of Jews are organized and active critics of the entire Zionist apparatus, rejecting the
idea of Israel as an exclusive ethno-religious state and supporting a secular democratic
republic in Palestine. The “51” misrepresent their actual numbers and claim to speak for 6
million US Jews. Their political influence resides in the support of the State of Israel and the
control of the mass-media institutions. The material basis of it is the Jewish financial power
that supports them. The 51 presidents are willing to use force, money and media slander to
intimidate any and all critics, including dissident politicians, media, journalists and professors.
According to Petras, the ZPC is powerful but not omnipotent. It controls the US
Congress and Executive and has decisive influence in the mass media. At the same time, a
number of Jewish organizations and individuals, revolted by Israel’s mass killings in Gaza
and the ZPC unconditional support, have spoken out in support of the Goldstone Report.
Dr Janos Drabik
190
In September 2009, Justice Richard Goldstone prepared a Final Report for the United
Nations’ Fact Finding Mission on the 2009 Gaza Conflict. Nevertheless, the ZPC did not like
this 500-page report. With pressures, threats, flattery and promises, they managed to persuade
Congressional representatives to vote against Justice Goldstone. It is characteristic that many
Congresspersons condemned the Goldstone Report and proudly confessed to never having
even read it. In the UN National Assembly, the Zionists were able to leverage the US to vote
against the Goldstone Report, which in turn determined the attitude of the Eastern European
client states. Nevertheless, even together with the Western European “Allies”, this amounted
only to a total of 18 votes against the 114 UN members who endorsed the Report’s thorough
documentation of Israeli war crimes committed in the course of the Gaza conflict.
Professor Petras wanted to find out whether the ZPC is a lobby or an unregistered
agent of a foreign power. Based on its organizational structure and political aims, the ZPC is a
pro-Israel social-political configuration, which cannot be reduced to a common “lobby”, since
it plays a major role in shaping the opinions and behavior of public opinion and civic society
organizations. Secondly, unlike other American lobbies, it acts to shape US foreign policy in
the interest of a foreign military power, by imposing sanctions against Israel’s opponents. By
this, it prejudices the lives and security of thousands of American working people and
taxpayers.
Thirdly, the term “lobby” does not apply for the ZPC, because lobbying organizations
ordinarily do not pursue repressive activities against those who criticize them, should they be
even cultural figures or academics. The ZPC not only acts a foreign agent for Israel today, but
has been openly doing so over fifty years. When, in the 1960’s the Justice Department
attempted to enforce the relevant act against the current American Israel Public Affairs
Committee (AIPAC)’s predecessor, the American Zionist Council (AZC), it was blocked by
pro-Israel politicians.
The ZPC not only publically gives unconditional support to Israeli policy but engages
in espionage on behalf of Israel. In our days, a vast archive of declassified official US
documents prove that the AIPAC purloined internal classified government documents, which
then have been used to enforce further Israeli trade privileges. A leader of the Zionist
Organization of America was implicated in the illegal transfer of US government uranium to
Israel in 1956. From 1979 to 1985, several critical confidential documents have been passed
through Israeli agents to the Soviet Union in order to influence their policy on immigration to
Israel.
American Zionist spy, Jonathan Pollard, who worked as an analyst for US Naval
intelligence, also provided the Mossad with crate-loads of classified top secret military and
intelligence documents. But he worked for money, similar to the Justice Department charged
Stewart David Nozette, a Defense Department scientist. Like Pollard, he asked for money
and an Israeli passport. According to former Mossad agent Victor Ostrovsky, the spy agency
recruits thousands of overseas Zionist sayanim (Hebrew for ‘helpers’) who “must be 100
percent Jewish” for Israeli Mossad operations, which may include terrorism.
In 2001 Fox News investigative reporter, Carl Cameron, reported that several Israeli
spies were arrested and deported in the aftermath of 9/11, including five Mossad agents
videoing the World Trade Center bombing. Industrial and political spying is not uncommon
among states, even between allies. What is striking is that representatives of an organized
ethno-religious group, the major American Zionist organizations, have expressed sympathy
and solidarity with the mentioned spies. According to the leading American Zionist
organizations, spying for Israel, is the expression of their primary loyalty to the Jewish state.
Those top Zionist leaders had top positions in both the Bush and Obama
administration, who have been working directly for Israel. Many of them failed even the
security clearances. Two top Pentagon officials in the Bush administration, Former
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Undersecretary of Defense Paul Wolfowitz and Assistant Secretary of Defense, Douglas
Feith are cases in point. Obama’s chief of staff, Rahm Emmanuel spent time in the Israeli
armed forces and has long been suspected of ties to Mossad. Stuart Levey, a top US Treasury
Department official involving in enforcing sanctions against Iran, has spent nearly a decade in
close collaboration with Mossad. During the Bush (Jr.) Presidency, non-Zionist officials in the
Pentagon and CIA complained of being sidelined by top Zionist officials, who set up their
own intelligence offices.
So, for instance, Wolfowitz and Feith set up the Pentagon’s Office of Special
Plans run by Abram Shulsky. Colonel Karen Kwiatkowski, an official in the Pentagon at
the time, complained of being marginalized and supplanted by Israeli officers who had
unfettered access to the highest Pentagon officials. In November 2007, the national
intelligence organizations of the United States prepared a National Intelligence Estimate
Report (NIE) on the Iranian nuclear program. The report was rejected by all the major Jewish
American organizations. And, accordingly, it was also rejected by their men in Congress and
the Executive branch. It was because the report concluded that Iran had suspended its nuclear
weapons development since 2003. The major Zionist organizations and their supporters in the
US government favored Israeli intelligence disinformation claiming that Iran continued its
active nuclear weapons program that threatened US security. In short order the NIE report,
prepared by 16 major US Government intelligence agencies, was pushed aside and US policy
followed the lead of the Zionist-backed Israeli claims of a “secret” Iranian weapons program
despite the absence of any hard data.
The result is that the Zionist Power Configurations unquestioningly support Israel,
including Zionist espionage for Israel within the US and the universally-condemned Israel
war crimes. This uncontested support of espionage by foreign power acting through public
organizations is unique in US history. In the past organizations acting as surrogates for a
foreign power were condemned, ostracized, suppressed, prosecuted and subject to mass public
outrage. It is a “tribute” to the power of ZPC that none of that occurs today, but even the most
radical “fellow leftist traveling editors”, who otherwise claim “internationalist” and “working
class” allegiances, are not willing to confront the ZPC
Zionist hegemony under single management
American researchers have already duly revealed, to date, which questions and
institutions of key importance are determinedly under Zionist influence. Some have identified
AIPAC as an influential pro-Israel lobby. Others have noted the pro-Israel bias of the mass
media. This is supported by the Zionist predominance in media ownership. During the Bush
Jr. presidency, the Zionists had key positions in the Pentagon, and played a decisive role in
promoting the US invasion of Iraq. It can be proved that those who consequently place
Israel’s interests in front of American interests have been present continually and in large
numbers on the decision-making levels of the administration for a long time. In a word, the
problem of ZPC power in the US is not confined to a single issue lobby. The ZPC effectively
deprives the great majority of the Americans of their wages and salaries, transferring the
incomes withdrawn from the middle class to war expenses. The ZPC, for instance, can block
investment opportunities for corporate America in countries designated (by Israel) as
“security threats”, i.e. enemies.
The leading Zionists continuously move from business (Wall Street, Corporate law
firms) to government. This move is going on in two directions. A similar pattern involves
Zionist academics and researchers who move to the executive branch. When the direction of
the move changes, many of them find jobs in corporate intellectual workshops, research
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institutes, Zionist think tanks. Others follow a career combining academic – propagandist –
journalist policy consultant positions, often prominent on the television political ‘talk’ shows.
The leading media moguls on one hand manage these media, on the other hand they are public
opinion forming propagandists themselves, and, at the same time, Israel’s most devoted
advocates. The overlap of career positions created a network of shared ideologies, defined by
‘what is best for Israel’. They are the Israel Firsters. The shared “world view” creates a
cohesive group that sets the boundaries of US policy debate.
These public discourses are confined by these ZPC-determined parameters. According
to James Petras, these pro-Israel career patterns and projections of power have established a
kind of Judeo-Zionist hegemony of US public life. One of the extreme manifestations of this
Zionist-Jewish hegemony is found in the fear and trepidation with which critics of Israeli
policy approach the issue. Most seek to “Judaize” any criticism, instead of seeking and citing
truth, facts or analyses on their own merits. They support their statements by
citing Israeli sources and Jewish writers, even if earlier non-Jewish, non-Israeli writers and
analysts have raised the same issues and may have provided a more systematic and
consequential critique. This procedure of seeking to play off critical Jews against the ZPC and
Israel is strongly debatable if not counter-productive, regressive and serves to re-enforce the
already existing, pervasive fear of the ZPC, as well as the servitude.
The proponents of this approach, assuming they are not ignorant of non-Jewish critics,
argue that by citing the Jewish background of the critics of Israel, they disarm the ZPC charge
of “anti-Semitism”. They further argue that by putting an ethnic ‘spin’ or ‘ethnicizing’ the
critique they are responding to “Jewish sensibilities” and are more likely to gain
understanding from Jews and their sympathizers.
According to James Petras, these arguments are plausible but deeply flawed.
Committed Zionists, meaning the persons and organizations belonging to the ZPC, dismiss
Jewish and non-Jewish critics with equal ferocity. They qualify the former “self-hating Jews”,
the latter “anti-Semites”. It is not worth sacrificing truth and principled criticism to shield
“Jewish sensibilities”. Yielding to the “Jewish sensibilities” means refraining from
challenging their residual tribal sympathies to a ‘Zion-centric’ view of the world. If the central
problem is Zionist hegemony of US culture and especially the unilateral foreign policy in the
Middle East, it ill behooves the Americans to pander to amorphous “special sensitivities” of
the few Jewish dissidents who demand ethnically-based critiques.
The big challenge for opponents of Judeo-Zionist hegemony is demystifying its
ideological bases. Zionists and their media camp followers always highlight “Jewishness” and
the disproportionate number of notable, successful scientists and public figures with whom
the Zionists self-identify, even if the said individuals have no identification with anything
remotely “Jewish” beyond some distant ancestry. In contrast, they do not mention the
“Jewishness” and Israel-centricity of notorious swindlers, spies, warmongers, gangsters, drug
or arms traffickers. If somebody brings such persons in connection with Jewry, he is labeled
anti-Semitic.
This selective ethnic identity is crucial to maintaining and perpetuating the racist myth
of Jewish superiority and the corollary of power and prestige. It creates the impression that
the claim of Jewish superiority is based on special meritorious qualities. One of the key
components of Zionist-Jewish ideology and Israeli state power is precisely the racist myth of
the Jewish moral and intellectual superiority. Thus, the special status of the Zionists lies on
this moral and intellectual basis – and not on the money and backing of Washington and the
ZPC’s central location within the US elite social structure.
According to James Petras, there are two options for those interested in demystifying
Zionist-Jewish hegemony. One could eliminate all ethnic labels or one could insist that labels
be applied to all individuals including the most nefarious, grotesque and embarrassing. Cracks
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can already be perceived in the Zionist monolith and several public critics have emerged
within and without the Jewish community. Especially among young former Jews, who prefer
to assimilate with their fellow-citizens. At the same time, still up to a third of US Jews remain
hard-core backers of the ZPC with Israel as their most enduring political loyalty.
Identification with beliefs in a mythical biblical past offers a kind of
psychological gratification in many respects. More important are the real material
benefits offered by joining the Israel First Power Configuration. It is true that
Zionists contribute money and time to promoting the Israeli agenda, but there are also
powerful material incentives, especially the benefits accruing from exclusive identification
and membership in a cohesive configuration. The ZPC empowers its members, finances
electoral campaigns and is well-connected among political leaders, as well as financial, real
estate and insurance moguls.
For upwardly mobile Zionist activists, belonging to the ZPC can be lucrative and
career-enhancing. Ambitious politicians, who measure up and toe the line, are likely to get
substantial funding and favorable media coverage. Networks, which work for Israel, enhance
Jewish-Zionist prestige while providing emotional gratification. A vicarious pleasure is
caused by Israel’s military victories and its forceful expansion of the “fatherland”, even
through bloody battles.
Not a few careers have advanced through the “contacts” made at the national and
regional Zionist meetings. This is especially the case for many, otherwise mediocre, political
candidates facing competitive elections. The same is true for those who perform activity in
scientific fields, since active membership in a powerful Zionist organization may protect the
careers of lackluster, or even incompetent, performers in some academic or professional
settings. They only need to threat the universities and other institutions with a lawsuit
charging anti-Semitism, namely that they want to get rid of the person in case because he is a
Jew.
Zionist racist ideology emphasizes in many respects that Jews are “special people”,
chosen and ordained by God. To this, we can add the media’s bias toward presenting a
selectively positive ethno-religious identity, provides symbolic gratification to lower middle
class Jews. They are those who sell Israel bonds, write letters to politicians, heckle critics of
the Jewish state and march under the flag of Israel. They are likely to play a role at the
grassroots level in influencing family members, neighbors and colleagues to join the cause or
refrain from voicing criticism of Israel.
Professor Petras attributes the success of the ZPC in projecting power and shaping US
policy, in large part, to the financial power of its millionaire financiers. This money oligarchy
penetrates into the state apparatus and interlocks the corporate-political directorate. However,
equally important is the grassroots work of hundreds of thousands of middle and lower middle
class activists. The effective exercise of power by the Zionist elites is based on the strong
vertical ties between the leaders and followers, especially in mobilizing for Israel’s high
priority campaigns promoting dubious causes. Like, for instance, Israeli repudiation of United
States calls for stopping Jewish colonial settler expansion in Palestine.
It is highly unlikely that any changes can be induced among the Zionist elite.
Nevertheless, there are reasons to believe that these vertical links (from up downwards and
from down upwards) can be weakened. According to Petras, over the past 5 years, numerous
articles, books and videos critical of Israel have broken through Zionist censorship and could
reach the large public. Equally important is the emergence of new activist Jewish
organizations, which follow an anti-Zionist program. Faced with this growing opposition in
civil society, the ZPC has escalated its repressive efforts to ban publication of critical authors,
fire academics and savage journalists and politicians who criticized the ZPC and Israel.
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Simultaneously a concerted ideological attack started at universities against those who
criticized Israel’s activity in Gaza, the brutal expansion of settlements in the West Bank, as
well as the Goldstone Report on Israeli war crimes. And also the resistance against Israel’s
well-orchestrated push for war against Iran.
The ZPC has long established a systematic control on the research institutes, major
media outlets and programs for opinion and analysis on the Middle East. As a result, Israel
First academics and journalists monopolize the editorial and opinion pages of the Washington
Post, the Murdoch chain, the Wall Street Journal, the New York Times, the Los Angeles
Times, the Chicago Tribune, Newsweek, and other print outlets. The above listed press organs,
for instance, in articles published on December 21, 2009, glorified the head of the Israeli
secret police, Mossad, Meir Dagan for his success in assassinating political adversaries
beyond national boundaries and his close ties with US Treasury official Stuart Levey.
Levey is in charge of introducing trade sanctions against Iran. Such media
personalities, like Ted Koppel and Wolf Blitzer, enforce the Israeli-ZPC line in the major
media. The result is self-styled “experts” with strong ties to Israel and Zionist propaganda
institutes, with a dubious loyalty – according to Petras – to America. Numerous professors
from the most prestigious universities hurried to defend Israel’s assault on Gaza, with
editorials, commentaries and advertisements. They even cited the “Just War” theory to
defend Israel. Israeli Prime Minister Benyamin Netanyahu, when confronted by near
universal support for the Goldstone Report, ordered the ZPC to denigrate Justice Goldstone,
the basis and legality of the Report and falsify its contents. As a consequence, the ZPC started
a mass campaign, mobilizing the academics, journalists and propagandists being under its
control.
Over one hundred op-ed pieces in the major media savaged the Report, slandered
Goldstone and defended Israeli terror attacks, which destroyed the entire human infrastructure
of the Gaza. Professor Petras notes that no Israeli crime was too great to cause any Harvard,
Yale, Princeton or John Hopkins Zionist academic to rethink their bind subordination to the
Jewish state. They parroted Netanyahu’s line that the massacre over one thousand civilians
and the brutalization of hundreds of thousands was an exercise of “Israel’s right to self-
defense”.
Few of the Jewish and non-Jewish academics, who dared to criticize Israel’s terrorist
policy, and cited the weakest section of the Goldstone Report – its amalgamating Israel’s all-
out terror bombing of Palestinian neighborhoods, schools, hospitals, mosques and farms, with
Hamas’ futile and ineffective retaliatory rockets falling mostly on empty Israeli fields. The
ZPC managed to secure over 90% of the US Congress in favor of Israel’s repudiations of
the Goldstone Report. What is striking about the vast majority of Zionist academic apologists
of terrorism is their shoddy scholarship, their tendentious and illogical arguments and de-
contextualized analogies. Their “persuasiveness” is based on the fact that their “line”
is reinforced by the institutions of the mass media industry, broadcasting them over and
over.
This is further enforced by the ZPC’s political banditism and unscrupulous
propaganda to run down the potential critics. Their repeated presence in the media gives the
appearance of legitimacy, although, in fact, they defend violations of international law. Their
prestigious positions at universities or scientific institutions and the media provide a veneer of
expertise or knowledge to these shallow opinions. This is made possible by the fact that they
are able to argument on flawed premises, including disproven religious legends and
colonial mythology. According to Petras, the more deeply the Zionist academics become
involved in justifying the Zionist and Israeli claims, the more their intellectual standards
deteriorate. Over time the reaching of prestigious academic positions becomes linked with
mediocrity. Academic degrees, awards and badges of merit can be obtained more and more
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through pre-ordered hack writing with purpose. Promotions and academic chairs are secured
by eminently distinguished apologists of dubious morality. According to Petras, the
American Zionist academic elite fits Theodor Wiesegrund Adorno’s opinion about the
authoritarian personality:
“This elite is at the throat of the American polity and at the feet of the Israeli – ZPC
elite. Arrogant posturing, angry polemics and emotional ejaculations cover up for their lack
of substantive arguments. Where bullying fails, soothing rhetoric which speaks to values,
dialogue and cooperation accompanies a blind eye to the relentless Israeli uprooting of Arab
residents from Palestinian/Jerusalem. Princeton academics cite classical political theorists in
defense of gun-toting Jewish settlers who brutalize shepherds, threaten school girls and up-
root centuries-old Palestinian olive groves.”
Globalization of the Zionist power
From the State of Israel that can be considered the Jewish national state to the nerve-
centre of the Zionist world power operating in America, the influence of the ZPC has spread
to important political institutions operating in England, Canada, France, the Netherlands,
Russia, and, more recently, in South America. In England, leaders and deputies from both the
Conservative and Labor party are dependent on campaign funds from billionaire Zionists, as
they could not take part successfully in political life without the millions received from them.
More and more make state-funded journeys to Israel and accept other payoffs in exchange for
supporting Israel’s politics of violence in Lebanon, Gaza and the West Bank.
Zionist front groups like the “Conservative Friends of Israel” and “Labor Friends of
Israel” ensure that the incumbent regimes and the opposition put Israeli trade and militarist
interests at the center of British Middle East Policy. In Canada under the Conservative
Stephen Harper regime, Zionists have secured unprecedented influence and diplomatic and
material support for Israel’s top priorities. These include support for the annexation of most of
Palestinian East Jerusalem, repudiation of the Goldstone Report, as well as support for Israeli
war crimes during the 2008/09 invasion of Gaza. The government of Ottawa supported
Israel’s invasion of Lebanon and there are pending legislations criminalizing criticism of
Zionism as “anti-Semitism”. In Canada, the opposition Liberal and New Democratic parties
compete with the Conservatives in pandering to the pro-Israel power configurations. In this
way, they compete to secure campaign financing.
In contrast, major Canadian trade unions and anti-Zionist Jewish campus and
community organizations have organized boycotts of Israeli goods and academic
organizations serving the Israeli occupation. In France, the well-known Zionist Foreign
Minister Bernard Bernard “Bernie” Kouchner, has embraced Netanyahu’s extreme position of
“unconditional negotiations”. This allows massive land seizures and the construction of
“Jews-only” apartment complexes on illegally confiscated Palestinian land to continue. In the
meantime, endless inconsequential “peace” negotiations take place. This position has been
supported by U.S. Secretary of State, Hillary Clinton.
In Russia, eight of the top nine billionaire oligarchs have claimed dual Israeli
citizenship. They illegally and violently seized hundreds of billions of dollars worth of
formerly state-owned mines, factories and banks. And then transferred part of their illicit
fortunes to overseas banks in Israel, the US, London and the money-laundering offshore
island states and tax-havens. Zionist power peaked during the Presidency of Yeltsin in the
1990’s, when public life was characterized by general depravation, chaos and anarchy.
During the presidency of Putin and later of Medvedev, the situation improved, but
residual influence of the ZPC is still evident. This is particularly apparent in the US-Russian
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accords to increase sanctions on Iran, a policy that jeopardizes billions of dollars in Russian
investments and trade with Iran. They were able to persuade Russia to refuse resolutely to
pressure Israel over its colonial settlement expansion. In a similar manner, Israel and the ZPC
retains a decisive influence over Holland and Germany’s Middle East policy, through the
continuous exploitation of the Holocaust Memory, and the psychological pressure with the
Anna Frank legacy. In doing this, they are helped by the pro-Israel trade and financial contact
system.
According to Petras, the newest example of the “globalization” of Zionist power and
the drive for new Israeli spheres of influence is found in Latin America. Major US Zionist
organizations have contributed substantial financial resources to building, advising and
orienting their counterparts, especially in Argentina, Brazil and Peru. The ZPC is engaging in
a systematic effort to curry favor with the US by demonizing President Chavez for his
forthright defense of Palestinian rights and condemnation of Israel’s crimes against humanity
during its invasion of Gaza. For these acts of courage the 51 US Jewish organizations branded
Chavez an “anti-Semitic”, even going so far as to accuse him of fomenting an assault on a
Jewish community center in Caracas. When the arsonists were arrested, the assault was
revealed to have been carried out by center employees hired by the local Jewish notables.
Global Zionism has targeted Argentina and Brazil. Argentinean Jews have a history of
ambiguous feelings toward the state of Israel and Zionism. Early twentieth century
international Jewish organizations established farming and cattle ranches – the legendary
“Jewish Gauchos”. Urban artisans and working class Jews were active in socialist, anarchist,
communist and left wing Yiddish organizations. The mid-century generation (1940-60) of
professionals, businesspeople, academics and bankers divided between leftist anti-Zionists
and Zionists. Both suffered attacks from the pro-fascist sectors of the dominant mass-based
populist Peronist regime.
In Argentina, a profound generational split took place in the local Jewish communities
especially under the military dictatorships of (1966 – 1973) and (1976 – 82). A significant
contingent of university-based students and professors, psychologists and professionals of
Jewish ancestry joined urban guerrillas and radical mass movements. Many of them died or
“disappeared”. At the same time, Israel continuously promoted Jewish immigration to Israel,
securing passage of Zionist and non-Zionist Jews to Israel. While the generation of young
non-Zionist Argentine leftist revolutionaries of Jewish ancestry was decimated, new groups of
wealthy Argentine Zionist Jews rose during the neo-liberal electoral regimes. They deepened
ties with Israel and more recently established extensive links with the US ZPC.
Under the pro-Israel Carlos Menem regime, anti-Semitic terrorists bombed a major
Jewish civic center in downtown Buenos Aires killing scores of Jews. Investigations of police
complicity were aborted by the Menem regime. Israel overlooked Menem’s “negligence” and
instead exploited Jewish fear to offer extremely favorable terms for Argentine Jews to
immigrate into Israel. These terms included paid travel, subsidized housing in the occupied
territories free education, jobs etc.
The non-religious, secular Jews, who previously had an active leftwing activity, gave
up their radical attitude. With de-industrialization, Jews, who had formed the backbone of the
previous progressive national bourgeoisie, turned to emigration, finance, real estate and
Zionism. The severe depression and financial crash of 2001–2002 led to the mass
impoverishment of all Argentines including otherwise prosperous middle class Jews. They
joined the popular mass neighborhood assemblies calling for the return of their savings, the
end of neo-liberal policies and politicians and the restoration of their jobs.
The subsequent economic recovery between 2003–2008 led to a sharp de-
radicalization and the ascendance of Jewish Zionist bankers, real estate and media moguls as
principal leaders in the Argentine community. Their influential role in business led to a shift
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toward closer relations with the ZPC. This included increased efforts to include Israel as a
member of the regional integration treaty MERCOSUR, i.e. the Southern Common Market.
Claiming that an Islamic Iranian terrorist conspiracy is going on in Latin America, the ZPC,
the ADL and AIPAC started a campaign, calling new trade ties between Iran and Brazil a
threat to the security of the US.
Leftist regimes came to power in Venezuela, Bolivia and Ecuador, which opposed to
US and Israeli colonial wars. Brazil and Argentina publicly opposed Israel’s crimes in Gaza.
As a consequence, Israeli President Shamir and then Foreign Minister Lieberman followed a
disastrous failed tour in South America. The continuous growth of the ZPC power in Europe and the US, and the new Zionist
offensive in Latin America is part of the “globalization” of Zionism. Following the aggressive
militarism pushed by the ZPC and Israel in the Middle East and South Asia, public hostility is
growing world-wide. A proportion of 80% to 90% of Israeli Jews defended Gaza war crimes
and land seizures, while the rest of the world endorsed this aggressive attitude by an almost
ten to one margin. This is evidenced by the United Nations General Assembly vote on
the Goldstone Report. Moreover, in the case of the leftist regimes in Latin America, there is a
significant reversal of Zionist influence. There are equally important cracks in the Zionist
monolith among North American Jews and former Zionist fellow travelers. As a consequence of all these, certain changes can already be felt also in the United
States, which affect the Jewish Zionist cultural and political hegemony. In the beginning the
ZPC could fully impose their view that Israeli conquest and wars against the native people of
Palestine and its Muslim neighbors was a war of “national liberation” or “independence”.
This first phase culminated with Jewish-Zionist success in convincing President Johnson to
cover up Israel’s bombing of the electronic spy ship USS Liberty during the Six Day War, in
June 1967. Between 1970-90, the Zionist-Jewish hegemony extended its dominance in such
traditional fields as the film, TV and radio mass media. Including a whole series of former
left-of-center and conservative weekly and monthly publications.
We can mention here the formerly liberal New Republic and the Commentary. The
latter soon became a mouthpiece for the neo-conservative ideology supporting the ZPC. Also
the National Review moved into the “Israel First” camp. The many thousand employees of the
numerous American “think tanks” (for instance, Brookings Institute, American Enterprise
Institute) produced many pro-Israel position studies and books. Their staff turned up in the
mass media as “experts” and into foreign policy advisory positions serving various politicians
and administrations. They rose to the highest levels of government in the Clinton
Administration and expanded further during the Bush and Obama regimes. At present, the
reliable cadres of the ZPC fulfil key positions in the government. It is estimated that as high as 60% of Democratic Party contributions came from Israel
First benefactors. By this, they could secure a proportion of 90% Congressional vote for
decisions affecting Israeli interests. During the American public life debates and public
opinion forming, neither liberal, progressive, radical, nor “Marxist” writers, academics,
editors, journalists brought up the issue of Zionist-Jewish cultural-political hegemony or its
growth. The so-called “left” has equally stepped obediently into the line as the neo-
conservative side, and, instead of arguments, they applied the vile ad hominem attacks when
they want to slander the analysts and critics of the ZPC. Even today, at the end of the first one and a half year of the Obama regime, the Zionist
presence in strategic positions in foreign policy making has been ignored by analysts and
critics of US Middle East policy. When, for example, an article criticized President Obama
and Secretary of State Hillary Clinton’s “inconsistent” position on Israeli settlements in
Palestine’s West Bank, they did not mention the fact that, where Chief of Staff of the White
House Rahm Emanuel (dual Israeli-US citizen) keeps a firm grip on U.S. foreign policy.
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Emanuel not only has been active in the Israeli army, but, according to Petras, is suspected by
several experts of ties to its spy agency, the Mossad. American liberal and leftist analysts maintain their “support” for Israel on the basis of
the fiction that the “bad” Israelis are the fanatical Likud party leaders while Labor and
Kadima party leaders and the Israeli people want peace and a just settlement. Unfortunately
they do not mention that it was the supporter of “progressive” Zionism, the Defense Minister
Ehud Barak who directed the bloody massacre in Gaza. He is the leader of the Israeli Labor
Party and supports all the new aggressive Israeli land seizures and colonial settlements. The
genocidal wars and violent settlements have the support of the vast majority of the Israeli
Jewish population. A public opinion poll carried out in November 2009 reveals that 53.2% of
the Israeli population say the solution to the conflict with the Palestinian people is their
forceful dispossession and ethnic cleansing – “transfer” from their homeland.
According to the analysis of Professor Petras, not only the Israeli-Jewish majority’s
embrace of a totalitarian final solution shakes the Zionist hegemony in the US. The embrace
of inconvenient positions, such as genocide approval, is not publicized in the Zionist mass
media. Instead they continue to broadcast clichés of a “dialogue” and “negotiated solution”
between the expropriators and the dispossessed. The question of Zionist cultural and political hegemony, where it is even been
acknowledged by non-Jews and Jews, revolves around several mistaken partially distorted
conceptions. One key idea held by anti-Semites and Zionists alike is that Jews possess special
qualities (“blood” or “genetic”). Many cite the importance of a Jewish historical tradition,
which emphasizes education and learning. Others, still, claim success and power comes from
knowledge, merit and achievement. Recent studies refute the idea of a special, unique Jewish
“gene pool”. Most contemporary Ashkenazi Jews are descendants of Central Asian Khazar
converts to Judaism in the 8th
Century A.D.
After the fall of the Khazar Empire, they settled down in Eastern European countries.
Israelis are not descendants of the ancient Jews of the Canaan in the Bible. Many of the Jews
from the Bible converted to Christianity and later Islam. Their descendants are most certainly
the modern-day Palestinians, as conceded by David Ben-Gurion himself. For over one
thousand years Jewish “scholarship” revolved around sterile debates and exegeses of the
minutiae of the Talmud and bodies of law based on religious myths. Critical philosophers like
Spinoza, who approached these myths with scientific methods, were looked at as renegades,
persons who deny the Jewish tradition and their faith.
The growth of the Enlightenment and the establishment of liberal laws opened doors
for several Jewish scholars and scientists to break out of the sterile confines of the Rabbinal
intellectual ghettos. Many of the great thinkers were called “Jews” because of their ancestry,
but, in fact, they did not belong to the traditional Jewish communities in the original sense any
longer. Spinoza, Karl Marx and Leon Trotsky did not practice Judaism nor identify as “Jews”.
Recognition and success of Jews can be led back to business and financial activity, mostly to
seizing of the control over the money system. The rise of several dynasties of Jewish origin,
especially in Europe, was assured especially by the technique of the production of money and
its lending on interest. A Jewish authored scholarly history of the Jewish people was not
written till the 19th
century. When this happened, nevertheless, it treated biblical legends as
facts – without any scientific proofs. After this, Professor Petras examines the special quality and merits of the Jewish
performance. He questions that the rise of Jewish-Zionist hegemony is a product of “merit” or
“achievement”. He distinguishes between the mass of Jews who occupy middle or lower
middleclass positions in society and those few individuals who have made major
contributions. According to Petras, the rise of individuals to economic power through the
exploitation of labor, the extraction of rent from tenants and speculation cannot be considered
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achievement through “merit”. Merit is made up of skills applied to advancing knowledge for
the greater good of the whole mankind.
The theorists of Zionists’ “superior race” lump successful Wall Street speculators with
innovative scholars as examples of “Jewish superiority” justifying or “explaining” hegemony.
Zionist race theories claim a homogenous ‘Jewish’ people bound by common history and
horizontal and vertical ties, which overwrites the profound social and even ideological
divisions. Jewish-Zionist hegemony in the US is the result of a supra or meta-historical
mythology with mystical religious foundations in the Old Testament. The rise of American
Zionism is tied to a virulent exclusivist tribal religious loyalty to Israel as the “mother state”.
The driving force of US Zionism is the subordination of US civil society organizations and
the instrumentalization of the US military and economic resources to service Israeli colonial
expansion and projections of power in the Middle East. The total subjection of the Middle East policy of the United States to the Zionist
Power Configuration is a result of the latter’s accumulation of power and political-cultural
conditions within the US, which weakened the articulation of alternative values and policies. The rise of Zionism is a virulent form of tribal-religious identity. They managed to
link it to a foreign state. Its successful exercise of hegemony within US society has been
facilitated by the abdication by the US ruling class ‘establishment’ of any ‘national’ identity.
The power structure surrendered to the Zionist power brokers in the strategic financial and
economic sectors of the United States. In this way, the public power was surrendered to the
organized private power of the financial structures. The globalization of US capitalism, and
the subsequent process of worldwide empire building, has shifted the focus of the US ruling
class toward international issues, as the center of its concerns. Thus, the United States favors
these foreign points of view even as it intervenes in its own domestic economic policies. This
determines the defense measures taken by the Pentagon, as well as the subsidies and bailouts.
None of these may trespass on Zionist power configuration priorities.
Going “global” and the emergence of “global consciousness” has worked against
challenging the Zionist pursuit of the colonial agenda of the state of Israel. The ZPC has filled
a power vacuum left by the globalized world elite and has been able to instill and impose
a Zionist conception of US “national interest” relatively uncontested. The rise of the Zionist
business elites into the top echelon of investment banking, financial institutions, real estate
and insurance enhanced the close cooperation and integration of Zionist and non-Zionist
members of the American ruling class. Within this new power structure, one side has a deep
and abiding political commitment to Israel, while the other sector gives exclusive primacy to
the accumulation of wealth and guaranteeing that state economic policy ensured profits, a
deregulated financial sector and bank bailouts.
The two parts of the new power structure shared the advantages between each other.
The non-Zionist sectors of the ruling class were not willing or able to engage in a fight with
the Zionist financial circles. However, Professor Petras perceives that there are divisions, both
in government and within policy advisory bodies, over Zionist control. The 16 major
intelligence agencies of the United States issued a report on Iran’s nuclear program in late
2007. The report debunked the Israeli-Zionist claims of an active Iranian
nuclear weapons program.
Likewise a Pew Foundation of the Council on Foreign Relations financed a study
made in November 2009. The study found that over two-thirds of the CFR members believe
the US favored Israel too much. Yet the same percentages claimed Obama is “striking the
right balance” but sustained that “Iran is a major threat to US interest”. Since the CFR is a
think tank made up of the most reliable members of the power elite, such an opinion could
even have some effect. Nevertheless, these two-third opinions within the policy elite have had
no impact on Obama’s Israel-friendly line, and the White House continues to promote the
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ZPC on all major issues connected with Israel. Namely, the ZPC could counterbalance the
position of the CFR effectively via its secret contributors built in the Washington Congress
and with the collaboration of such Israel-friendly politicians as Hillary Clinton and Stuart
Levey.
Levey, as the first Under Secretary within the United States Department of the
Treasury, has been the head of financial intelligence since June 2004. By controlling and
regulating the financial intelligence, his duty was to fulfil also connected tasks of public order
maintenance, so that the different participants and organizations of the international terrorism
could not get financial funding. Furthermore, his duty was to hinder the proliferation of the
mass destruction weapons, to combat the traffic of drugs, and to prevent that any organization
or person threatening the American national security could get financial support. We can state
that the Zionist power at the top is uncontested and free to control politically the lower
echelons of the political system and class structure for its own interest.
This includes the wholesale purchase of political parties and the financing of
congressional politicians on key foreign policy committees, in order to make appropriate
decisions in issues that are important for the ZPC. The Israel First Political Action
Committees (PAC) promote the selection of Zionist Congress people to key committee posts.
Four of the top fifteen Congress people funded by Wall Street super-rich financial leaders are
Zionists. Eleven of the top fifteen are Democrats, who receive 60% of their contributions
from Zionist multi-millionaire financiers in Los Angeles, New York, and south Florida and
other metropolitan centers.
The American political class, party leaders, as well as executive and congress people,
have also ignored economic growth based on endogenous resources, which would be in the
interest of American working classes. In the meantime, they conduct active interventionist
foreign policy in several regions of the world. The political class detaining the power favors
military driven empire building. This undermines any enforcement of national interests,
democratically supported by the majority of Americans. Moreover, the military nature of
world-scale empire building of the United States promotes the Zionist-Israeli projection of
regional military power and hegemony. Military-driven imperialism weakens any effort to
develop alternative US overseas economic interests and policies, especially with Moslem and
Middle East oil countries.
Such a policy – serving America’s real interests – could counterbalance the Zionist
Israeli policy, which gives priority to Israel’s military expansion and colonization interests.
This servile attitude of the American ruling class has undermined the traditional community
moral and solidarity even on the lower levels of the society. Most of the American trade
unions are controlled by Zionist functionaries, who managed to channel hundreds of millions
of member pension funds and dues into purchasing Israel bonds, rather than building cheap
co-operative housing or helping their members’ rise in other way, for example by funding the
schooling of their children. Many trade union leaders were bribed with travels on public cost
and other benefits, and diverted from the service of the real interests of the community.
In universities, municipal politics, professional associations, Israel
Firsters successfully stifled any debate, let alone criticism, which could be critical against
Israel. It proved to be detrimental and destructive that the ZPC eliminated debate on possible
American democratic foreign policy options in the Middle East. Those who, in any way, may
question the Israel First option, are frightened, intimidated and, frequently, even lose their
jobs.
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Are there any possible alternatives against the Zionist hegemony?
In countries where independent and relatively strong trade unions and other
autonomous social and trade organizations are still operating, and where there are such
scientific and research teams, which have their own material basis necessary for their
autonomy, the civil society is still able to defend itself against the Zionist overpower. The
heinous blackballing of critics by Zionists is rejected in these societies. Where internationalist
solidarity movements are still strong, there still exists the support for Palestinian resistance to
Israeli colonialism. In these countries, the local ZPC organizations have not been able to use
their economic power and their hegemony over media to enforce their interests.
There still are remnants of international solidarity among some universities and trade
unions in the US, especially the dock and warehouse workers in San Francisco and in other
places. According to Petras, the major potential counterweight to Zionist Israel First
hegemony in the US would be in a revival of patriotic working class consciousness.
America’s “special relation” with Israel has been at an enormous cost to the working class.
The foreign aid, loan guarantees given to Israel, the hijacked technological innovations and
lost overseas investment opportunities amount to over $1.5 trillion (1012
) dollars. This sum
does not include the cost of the war in Iraq fought on Israel’s behalf, as well as the
inexpressible value represented by the lives of 4,715 American soldiers. This is the official
number of those who lost lives in fighting Israel’s war in Iraq. As a further figure, we mention
that the number of Iraqi victims amounts to 1,366,350. As their lives are not directly
American losses, their data have not been taken into account.
There is a material base for a mass patriotic working people’s revolt against the
excessive submission of the entire political class to the ZPC and its patrons in Tel-Aviv. But
today tens of millions of Americans are for the moment disillusioned with “patriotic” appeals,
whose purpose is to promote imperial wars – including wars for Israel – at the expense of
their living standards. Right wing pro-capitalist politicians, clinging to the delusion of the
failed money rule capitalism, use patriotic rhetoric to deflect attention from the usury money
power – which is an organized private power standing against public interest and public
welfare – and from its domestic, society-destroying failures. This also includes how Goldman
Sachs and other Wall Street speculators continuously perform massive transfers of wealth and
income from the value-creating work to the parasite money capital.
The devaluation of patriotism is evident in that extremely right wing manipulation by
the owners of power to turn native born workers against immigrant workers, propagating a
kind of perverse nationalism. At the same time, they do not say a word about how costly is the
ZPC’s pro-Israel strategy for Americans. This manipulative use of nationalism, in turn,
hinders the growth of a national mass movement against the Wall Street speculators looting
America, the wars for Israel and the costly global empire expansion.
According to recent surveys, literally less than 5% of the American society even trusts
the operation of the financial sector symbolized by Wall Street. The Americans, nevertheless,
already managed to denounce Obama’s initial bank bailout plan, forcing a temporary
postponement. The national-scale, unorganized mass resentment persists and is smoldering,
and, if it reaches an appropriate degree of organization, changes can be expected, which
restructure the whole society.
It is worth attention that family and relatives of the Zionist power configuration,
who strongly promote US wars for Israel in the Middle East, are rarely to be found in the
Armed Forces, least of all at the frontlines. If we exclude non-Zionist Jews – mostly
immigrants from the former Eastern Block and USSR – the number of the members of ZPC
families participating to war service would be one-thirtieth of one percent of American troops
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taking part in the war, which means that less than ten of ten thousand American front fighters
belong to that ZPC, which imposes these wars on the American state and society.
It is a fact that more American Zionists are more eager to join the Israeli Army than to
put on an American uniform, yet Zionists are present in great number in public office, in the
Pentagon, executive branch and the White House. These powerful public officers design and
promote war policies and military-driven sanctions. As a consequence of their decisions, the
members of the American working class are shedding their blood, especially jobless
American workers, including many minorities, who, not finding jobs for themselves, are
forced to seek employment in the military. It would be difficult to persuade the members of
the American working class to shed their blood in a Zionist war, if the still existing leftist
forces and the real adepts of peace united. This, nevertheless, was not possible to date,
because the left and pacifists were beholden to their Jewish colleagues “sensibilities”, and
were reluctant to raise the question: To what extent is the Zionist Israeli influence
responsible for promoting US war policies? Genuine patriotic solidarity, representing the interests and values of the majority of
Americans, is weak and is lacking any meaningful recall of the American anti-colonial, anti-
slavery, anti-imperialist and anti-fascist identity. In contrast, the organized private power built
in the American society – and called “Zionist fifth column” by Petras – is driven by a
powerful mythological-tribal race-driven identity, such religious legends, which, through the
racial superiority, are deep-rooted even in the sense of secular Jews.
Israeli hegemony is deeply embedded in a Zion-centric cultural universe. Anglo-
America’s flaccid intellectuals did not dare to challenge this culture. Their intellectual
cowardice is masked with a thin layer of cosmopolitanism. Their intellectual silence and even
complicity is intended to “protect the sensitivities” of their Zionist colleagues regarding any
forthright critique of Zionist power in America. Professor Petras, sincerely committed to
social justice, thinks that only a revived working class movement, which recovers its
historical memory of national class solidarity, will be able to fight the real independence for
the American society and state. By enforcing the principles of social justice it will be possible
to free America from under foreign dictates and to put an end to the Zionist hegemony and
Wall Street money rule pillage.
The study written by American Professor James Petras raises several central questions
that need to be addressed and answered appropriately by Americans, or they would have
impacts on the fate of not only the United States, but of the whole world. At the end of his
study, he asks three questions:
Can we oppose Israeli war crimes and expansion and US government support of Israel
by confronting the ZPC?
Can we open a debate on US, Middle East policy by fighting Zionist authoritarianism,
witch hunts and hate crimes?
Can we discuss and propose a democratic foreign policy, which opposes military
intervention, sanctions and economic blockades, by tackling American militarists and Israel’s
foreign agents?
If the answer to these questions is affirmative, what can be done? What practical
measures can be pursued and supported by Americans? One of the possibilities is to educate
the American public about the Obama regime’s charade – of talking peace to the American
people while supporting the Israeli war machine; of talking about an evenhanded and just
Middle East policy while appointing committed Zionists to top policy positions. The
Americans can demand the Justice Department enforce the Foreign Agents Registration Act
toward the 51 presidents of major American Jewish Organizations and especially the
president of AIPAC.
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The Americans should also oppose all dual citizens’ appointments to key
policymaking posts. They should demand that Undersecretary of Treasury and Israel
Firster Stuart Levey be investigated and prosecuted for gross malfeasance of office for his
refusal to investigate the illegal billion-dollar money laundering operations by US Zionists in
the funding of illegal Jewish settlements in the West Bank. Stuart Levey should also be
prosecuted for his promotion of economic sanctions against trade with Iran. They have cost
US workers thousands of jobs and the crippled US economy billions of dollars in lost trade.
Another possibility would be to oppose military and economic aid to Israel, especially
when the average per capita income of Israelis exceeds that of 40% of Americans. It should be
necessary to demand the end of trade privileges for Israel in light of the US’ multi-billion
dollars trade deficit with Israel, which has destroyed tens of thousands of American jobs in
industry and services.
They should combat widespread Zionist hate propaganda, organized and publicized by
the ZPC, against Muslin Americans and Arab Americans, their cultural foundations and
charity institutions.
It is necessary to demystify Zionist claims that the Jews’ ancestral homeland is Israel,
rather than North Africa and Central Asia, and that there is no historic basis for the Right of
Return.
And lastly maybe the most important: Americans should support the struggle against
that money rule class, organized private power, which turns the money accumulated with
interest into political power through the most various techniques of corruption. The structural
cause of the corruption is the extreme over-enrichment of a narrow finance, real estate and
insurance billionaire cast, and the consequent excessive concentration and centralization of
the political power under their hegemony.
The “divine destiny” of Senator Chuck Schumer
The Democrat senator of New York Charles Ellis “Chuck” Schumer is the third
Democrat senator fulfilling the most outstanding position in the Washington Congress. He
stated – in an interview given to a New York radio on 1st May 2010 – that he phoned Rahm
Emanuel, Chief of Staff of the White House, and warned him he would “blast” (attack in
public) the Administration if the State Department did not back down from its policy
condemning Israel’s colonization policy. According to Schumer, there are two sides in the
White House. One of them supports Israel in the traditional way, while the other exerts a hard
pressure on both Israel and the Palestinians. Schumer said: he and the senators with similar
commitment “are pushing hard” to make sure the Israel-friendly side wins and if not they
“will have to take it to the next step”.
He completed his statement telling the interviewer that he was Israel’s “guardian” in
the Senate, a role given to him by Hashem (God’s orthodox name): “My name as you know,
comes from a Hebrew word. It comes from the word shomer, which mean[s] guardian. My
ancestors were guardians of the ghetto wall in Chortkov and I believe Hashem, actually, gave
me [that] name as one of my roles that is very important in the United States Senate [is] to be
a shomer for Israel. I will continue to be that with every bone in my body for of the other
is [sic]against me.”
We can cite similar statements from other Jewish American Congressmen as
Representatives Jerrold Nadler, Eliot Engel and Anthony Weiner, all belonging to the
Zionist Organization of America, and represent a kind of Democratic Party opposition
against President Obama. Such a maximal commitment to Israel has a special importance,
because more and more news come about that the Israeli leadership still keeps the question of
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the destruction of Iran’s nuclear sites on agenda, the possibility of the so-called preventive
attack.
Senator Joe Lieberman tried to enforce the essential aggravation of the sanctions
planned against Iran at President Obama. He expressed his concern about the fact that
America does not do everything quickly in order to hold back Iran from the development of
nuclear weapons. Lieberman said: “I am convinced that we have arrived to a historical
turning point. An Iran detaining nuclear weapons means that the world will be less safe than
today, and the threatening of our security is growing day by day. Iran is an extremist power
in expansion. No country detaining nuclear weapons like this existed previously. Therefore we
must impose severe sanctions quickly. I am convinced that the Congress will soon pass an act
on this.”
Senator Lieberman representing the state of Connecticut thinks that this is the last
chance for forcing Iran with sanctions to stop its nuclear program, and to let Tehran know that
it can expect military counter-actions if it does not do this. Lieberman stressed that he was
strongly convinced that it is necessary to prepare for military actions, to stop the Iranian
nuclear program, in case Tehran rejects to make it itself.
All this means that the neo-conservative American politicians who represent the
interests of Israel and the ZPC would like to persuade the United States to either take itself the
steps against Israel, or, if Israel makes the first step, the United States should fully support it.
The neo-conservative front men of the ZPC argue that, if Israel itself performed the bombing
of Iran’s nuclear sites, the expectable Iranian counter-actions would endanger the lives of
many American soldiers in the Middle East region. The argumentation is built on the logic
that the Iranians would consider the Israeli attack an attack made by America and so they
would exert punitive sanctions against the Americans too. This argumentation must be taken
into serious, since General Petraeus, Commander of the U.S. Forces in the Middle East has
already said several times that the American armed forces must act taking into account that
the United States and Israel is one and the same in the Middle East region.
This is word by word identical with the standpoint of the AIPAC, expressed by one of
the speechwriters of Vice-President Joseph Biden in this way: “When the question of security
arises, there is simply no distance between the United States and Israel.” Israel and the ZPC
put the United States in front of a choice: It either holds back Israel from attacking Iran, or it
endangers its own soldiers through the planned Israeli attack. The answer to this of the ZPC’s
neo-conservative front men was that the United States must undertake the destruction of
Iran’s nuclear facilities.
Eliot Abrams said that, according to him, Israel would make a step, and he hoped
America would do the same. And Steve Rosen, one of the leaders of AIPAC, argued saying
that the majority of Americans supported the use of force against Iran, and that the United
States could perform this task more efficiently than Israel. The neo-conservative groups of
interest, which have enforced the Iraqi war, think that the new war against Iran is a kind of a
world political power game, where it is only important that the other party must be defeated.
Being the owners of the institutions of opinion power, they can propagate convincingly that
Israel does not do anything wrong, therefore the opinions of those who criticize Israel must be
neglected.
The consequences of a military intervention against Iran are incalculable for the
moment. According to experts, the destruction of the nuclear facilities, established in
underground bunkers dispersed everywhere in Iran, is probably not possible without nuclear
devices. And this, in turn, forecasts the danger of a nuclear war, into which many other
countries in the region can be involved, i.e. the possibility of a new world war exists. Surely,
this would cause the death of quite many people. And all this could be argued primarily with
the defense of the security of Israel. This raises the question that the survival of the Jewish
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people and Israel as the Jewish State is such a morally acceptable universal interest,
conforming to the norms of the universal ethic, for which it is worth putting at risk even the
outburst of a world war.
Yehezkel Dror: “When survival of the Jewish people is at stake,
there’s no place for morals”
The Jewish weekly magazine Forward, issued in America, has an electronic daily
newspaper version already for years. On 15th
May, 2008, this online newspaper published the
article of Professor Yehezkel Dror, Professor Emeritus of the Hebrew University of
Jerusalem, in which the author formulated the thesis in the title and tries to support it with
arguments. Professor Dror performed a scientific and training activity in several foreign
institutions and universities, among them the Berlin Scientific Centre. He served as a senior
consultant on policy-making and planning for the Israeli government and performs research
and expertise work for several international organizations, among them the OECD. His
opinion is hallmarked by the fact that, being a member of the Club of Rome, many of his
writings were considered the official statement of the Club of Rome.
Dror asks the question: When the survival of the Jewish people conflicts with the
morals of the Jewish people, is existence worthwhile, or even possible? The position of Dror
is that physical existence must come first. No matter how moral a society aspires to be,
physical existence must take precedent. If clear external and internal dangers threaten the very
existence of Israel as a Jewish state, it is very likely that the collapse of Israel or the loss of its
Jewish nature would undermine the existence of the Jewish people as a whole. And even
given the existence of a Jewish state, less clear but no less fateful dangers threaten the long-
term sustainable existence of the Diaspora.
When the requirements of existence conflict with other values, therefore, realpolitik
should be given priority. From the threat of a disastrous conflict with Islamist actors such as
Iran, to the necessity of maintaining distinctions between “us” and “others”. By this, it is
possible to limit assimilation, which is an unconditioned imperative. Human history refutes
the idealistic claim that in order to exist for long, a state, society or people has to be moral.
Given the foreseeable realities of the 21st century and beyond, harsh choices are unavoidable,
with requirements of existence often contradicting other important values.
Some might argue that putting existence first may be counter-productive in terms of
existence itself, because what may be regarded as immoral action can undermine external and
internal support essential for existence. However, the calculus of realpolitik gives primacy to
existence, leaving limited room for ethical considerations. The unfortunate reality is that the
Jewish people may be faced with tragic choices in which important values have to be
sacrificed for even more important ones. Responsible decisions in such difficult situations
require clear recognition of the involved moral issues, careful pondering of all relevant values
and acceptance of responsibility for one’s autonomous judgment. They also demand an effort
to reduce to a minimum the violation of moral values.
Nonetheless, when faced with such choices, the Jewish people ought not be captivated
by political correctness and other thinking-repressing fashions. The survival of Jewish
people must be given primacy to moral concerns. What is required is an a priori pondering of
values, so as to have guidelines ready for judgment in specific contexts and under crisis
conditions. According to Dror, the overall issue is whether the imperative for the Jewish
people to exist is a categorical one overriding nearly all other values, or one among many
imperatives of similar standing. Dror’s answer is unambiguous: Taking into account the other
moral imperatives, the imperative to assure existence is overriding all others, for four reasons:
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First, the Jewish people has an inherent right to exist, just as any other people or
civilization.
Second, a people that has been regularly persecuted for 2,000 years is entitled morally,
in terms of distributive justice, to be very tough in taking care of its existence, including the
moral right and even duty to kill and be killed if this is essential for assuring existence – even
at the cost of other values and to other people. This argument is all the more compelling in
light of the unprecedented killing only a few decades ago of a third of the Jewish people –
mass murder that was supported directly and indirectly, or at least not prevented when
possible, by large parts of the civilized world.
Third, given the history of Judaism and the Jewish people, there is a good chance that
they will continue to make much-needed ethical contributions to humanity. However, in order
to do so they require a stable existence.
Fourth, the State of Israel is the only democratic country whose very existence is
endangered by deeply hostile actors, again, without the world taking decisive
countermeasures. This justifies – indeed, requires – measures that would be not only
unnecessary but also potentially immoral in other circumstances.
The Jewish people should give much more weight to the imperative to assure
existence than to other values. There are, of course, limits; nothing can justify initiating
genocide. But with the few exceptions where being killed and destroyed is better than
transgressing against absolute and total norms, assuring the existence of the Jewish people,
including a Jewish State of Israel, should be valued as a top priority.
Jewish leaders should support harsh measures against terrorists who potentially
endanger Jews, even at the cost of human rights and humanitarian law. Professor Dror adds to
this: if the threat is sufficiently grave, the use of weapons of mass destruction by Israel would
be justified if likely to be necessary for assuring the state’s survival, the bitter price of large
number of killed innocent civilians notwithstanding. Of course, it must be debated what is
really required for existence. Giving priority to the imperative to exist does not imply
supporting each and every policy of Israel. Indeed, the opposite is true.
Diaspora leaders, organizations and individuals have a duty to criticize Israeli policies
that in their view endanger the Jewish state and the Jewish people’s existence. At the same
time, they have the obligation to propose alternative existence-assuring policies. According to
Dror, there is no need for endless arguments about the tough and painful practical
implications of prioritizing existence. When important for existence, violating the rights of
others should be accepted, with regret but with determination. The imperatives of existence
should be given priority over other concerns, including liberal and humanitarian values.
Dror is aware of the fact that this tragic but compelling conclusion is not easy to
accept, but he finds it essential for the future of the Jewish people. Once the existence of the
Jewish people is assured, including basic security for Israel, much can and should be
sacrificed for Tikkun Olam, i.e. “repairing the world”.
Professor Dror’s ideas are not convincing – what is more, they should be rejected –,
because any other people can acquire the principle that its existence and survival legitimates
neglecting universal moral values. If this is acceptable in the interest of one nation, it must be
accepted in the interest of another too. This, in turn, means that we can never put an end to the
conflicts between nations and to killing wars. If everybody were thinking like Dror and cared
only for himself, would commit himself, in fact, to the culture of death. Professor Dror
should think over that moral imperative which says “love thy neighbor as thyself” and “do
onto others that you would like to be done to yourself”. From this heritage of Jesus, we can
draw the consequence that the universal moral imperatives cannot be relativized, and they
must be kept as unconditioned moral commandment by the whole mankind, even if the goal
can never be wholly reached.
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Double standard everywhere
The double standard is a double moral. It is especially obvious in the Jewish
nationalism. In most countries and cultures, nationalism has both positive and negative
aspects. Its virtue is that it unites people, while its disadvantage is that it turns them against
their neighbors. Being exaggerated, it can become such an extremism, which already
expressly hurts the human rights and political liberties of others, including also the collective
rights. The Jewish nationalism can be considered extremist, and must be opposed, to the
extent that its essence includes the confrontation of both religious and secular Jews with the
non-Jews (goy). This does not mean that all Jews or all Israelis feel and think in this way. But
it means that Israel cannot be different, in our days, from what it is.
There are several essential points in the issue of the Jewish nationalism (Zionism) and
other countries and cultures. One of them is that, in the Zionism, the xenophobia, racism,
ultra-nationalism and militarism are determining. Secondly, we can mention that the Zionism
undermines the citizen’s loyalty towards other countries and nations in its followers.
According to some researchers (e.g. Dr. Alan Sabrosky), not even the German national
socialists did dare to go as far. A considerable part of the American Jews, even those who are
not American-Israeli dual citizens, cultivate the double loyalty, which can even be compared
to bigamy. For instance, Rahm Emanuel, Chief of Staff of the White House, has never been a
soldier in the American Army, but fulfilled military service in the Israeli Army. When the war
between the United States and Germany broke out, the members of the American-German
federations left these organizations and nearly all of them joined the Israeli Army as
volunteers.
And thirdly we can mention that the enemies of an average nationalist movement also
include the occupants and their allies. Nevertheless, when they manage to win independence,
usually normal relations are established with the occupant power. This is different in the case
of Zionism, since it considers all outsiders actual or potential enemies, and the only difference
between them is whether they are close or far.
As a fourth difference, we can mention that all nationalist movements, including the
irredentist and separatist movements, have set the goal of establishing independent states.
They want to unite the fractions of nation living separated in this state. It is very rare that a
whole people is removed from its original native land. (Nevertheless, it happened several
times during the colonization, so also in America, where the native Indians were haunted and
exterminated.) These points become important if we examine the possibilities of the peace in
the Middle East.
Is it the modern “Samson option”?
Starting from 12 March 2010, several such writings were posted on different internet
forums, which cited Martin Karfield, the well-known Israeli military historian, according to
whom Israel might get in such a situation in which it would be forced to exterminate the
European continent, using its available military force, including even its nuclear weapons, if
its unavoidable destruction was approaching. He added to this that Israel also considers
Europe a hostile target. The cited statements came in a press interview broadcast by the Israeli
Seventh Hebrew Radio and was translated on Wednesday, 10th
March 2010 into Arabic by the
Press Information Analysis and Study Center. According to the text translated into Arabic, the
Israeli historian stated:
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“We have hundreds of nuclear warheads and missiles that can reach different targets
in the heart of the European continent, including beyond the borders of Rome, the Italian
capital,”
Karfeld said, adding that most of the European capitals would become preferred
targets for the Israeli air force. The Israeli historian reiterated Israel’s ability to destroy the
whole world whenever it felt its existence would be doomed to extinction. As for the
Palestinians, the historian said that Israel at the present time pursues a specific strategy based
on mass deportation of the Palestinian people and has intentions to expel all Palestinians
without exception, but it is awaiting the right moment to take this step. “Two years ago, there
was only seven to eight percent of the Israelis believing in this solution towards the
Palestinians and just two months ago this percentage rose amongst the Israelis to 33 percent,
but today, according to a survey conducted by Gallup institute, this figure surged to 55
percent,” he noted.
The historian highlighted that Israel must take advantage of any incident that would
give it a golden opportunity to expel the Palestinians as what happened in Deir Yassin
massacre in 1948. Replying to a question whether Israel does not have fears of being
classified as a criminal state if it expelled Palestinians, Karfeld said:
“Israel is a state that does not care about what others say about it and you must
remember the saying of former defense minister Moshe Dayan when he said that ‘Israel must
always act as a wild dog even if it would be seen as dangerous in the eyes of others, rather
than be harmed.’”
In the case of the interview with Karfeld, we had to do with a translation made of
translations, so we tried to check out the above presented text. First, we had to specify the
name of the Israeli historian: his real name is Martin van Creveld. He was the former
professor of the Hebrew University and taught or lectured at several Western strategic centres,
including the U.S. Navy Academy. Second, we have to mention that the radio station referred
to as “Seventh Hebrew” is in fact the “Arutz 7”, which is a station broadcasting only in
Hebrew. We could also establish that this interview was made much earlier, and the radio
programme in case was in fact the re-broadcasting of an article published in 2003 in the
British The Guardian.
And, fourth, we have to mention that Martin van Creveld probably expressed the
strategic thinking of the upper level of the Israeli military leadership, and not his own opinion
in the interview. In 2003, only a few radio and television stations broadcasted this interview.
All he said in it, probably reflected the opinion of the Sharon government at that time. And
one must not forget that this interview can be read on the internet and only in the way that
they always redirect you to the Palestinian Information Center.
Double standard and the world financial crisis
The double standard applied in practice can be regarded an objectified double moral.
In April 2010, the U.S. Securities and Exchange Commission, the SEC, brought a charge
against the leading financial corporation of the Wall Street, the Goldman Sachs. At the same
time, the hearings started in the U.S. Senate. In the leading circles of the Zionist power
configuration, the question arose: can that person be considered anti-Semite who criticizes the
business practice of Goldman Sachs and takes a strong line against it? Namely, the public
opinion considers Goldman Sachs such a powerful Jewish financial institution, which controls
the whole financial branch, and that who criticizes Goldman or its owners and managers, in
fact attacks the Jewry. Nevertheless, we can interpret this in the way that the financiers of
Jewish origin play a leading role in the Wall Street because the intelligence quotient of
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Ashkenazi Jews is higher than the average Europeans, so Goldman Sachs is Jewish only to
this extent.
If a sociological survey shows that nine of ten street crimes are committed by blacks, it
is nothing but a fact-finding in America. But, on the other hand, if another sociological survey
shows that nine of ten of crimes with securities are committed by persons of Jewish origin,
this finding is considered an anti-Semite calumny. It is a fact that the enterprises and financial
institutions being in Jewish property or under Jewish control played a determining role in the
financial collapse developing between 2007 and 2010. The processes were managed by
Jewish financiers, and they drew a record-size profit out of them. The Wall Street and the
Goldman Sachs can be criticized, but it is not allowed to mention the fact that Goldman
Sachs is a corporation in decisive Jewish property and under Jewish control.
The statements – that already became commonplaces – concerning the Jews and the
financial relations are sometimes expressed in a harsher form: the Jews are greedy, they lie,
cheat, they detain an unfairly large influence in the state power, which they selfishly and
harshly misuse, and so on. These can and must be debated, arguing pro and contra, but it is,
nevertheless, reasonable to ask the question: do the decadent phenomena perceivable in the
world of money – primarily the lack of moral norms – have anything to do with the Jewish
way of life, or, in other words, does the Jewry create, for themselves, such an own culture,
which then will be identified with themselves?
Kevin MacDonald (professor of psychology at California State University, Long
Beach, who presented his theory on Judaism in three books) sees that this argumentation has
two aspects. According to one, the Judaism is such a group strategy for staying alive and
getting on in life, the organic part of which has always been the sharp difference between the
own community and the other people. Totally separated moral rules are valid for the own
community, and essentially others for the outsider groups. As a consequence, the Jewish
moral world is a particular one, and it neglects the ethical concerns towards the non-Jews.
This attitude, which regards all other people only tools for making profit, strives at the
maximal profit not taking into account the consequences, the detrimental effects exerted on
the non-Jews.
In the traditional societies, the common characteristic was that the Jews made alliance
with those non-Jewish elites who made up the powerful, wealthy layer in the given society.
This strategy, serving the successful survival and prosperity, was determining. The Jews were
the ideal mediators for all ruling elites, living on others’ work. The interests of the Jews –
since they formed a genetically consciously separated group – considerably differ from the
interests of those who were exploited by the ruling elites. The mediators manifest maximal
loyalty towards the rulers, and hardly take into account the interests of the lower ones, those
in a disadvantageous situation. They regard them as tools suitable for making profit, who can
be used together with the other inhabitants of the given territory.
The other aspect of the argumentation shows out that the double moral is prevailing in
the Jewish attitude, and it is present everywhere in the basic documents of Jewish popular
traditions, culture and religion. In the long history of anti-Semitic attitude, an outstanding role
has always been played by the accusation that the Jews are in fact xenophobes, and are too
likely to exploit the non-Jews. Tacitus, the Roman historian, wrote about the Jews: “among
themselves they are inflexibly honest and ever ready to show compassion, though they regard
the rest of mankind with all the hatred of enemies”. Immanuel Kant, Werner Sombart,
Heinrich Graetz, Max Weber, Theodor Herzl and Edward A. Ross have also stated that the
Jews generally apply different moral rules for themselves and for the non-Jews.
In the respect of the financial crimes with serious consequences, committed by the
Jewish financiers of Wall Street, the key problem is how the other American Jewish
communities relate to them. It is a fact that they do not distance themselves from these
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successful swindlers, but, on the contrary, they are proud of them. They consider them the
main financial supporters of the Jewish communities. They judge the so-called white-collar
criminality totally differently from the other crimes. Michael Milken, who made billions by
speculating with so-called junk bonds, is surrounded with great respect, because he makes
generous donations for Jewish programs. Ivan Boesky, who was also sentenced, donated
twenty million dollars to the library of the Jewish Theological Seminary. Mark Rich
supported with many millions the Birthright Israel program, the goal of which is the
strengthening of the Jewish identity among Jewish youths.
The real problem is that the Jewish financial elite regards the non-Jewish world only a
tool, which can be maximally used – by neglecting all moral barriers – for obtaining the
highest possible profit. This is why that opinion appeared in a part of the American social
researchers, according to which the financial elite behaved like an organized criminal gang,
and not as a leading group bearing responsibility for the whole of the society. This elite did
not take into account the long-term interests of the American people. The organized crime
originates from the lower levels of the society, but the financial collapse was caused, on the
contrary, by the groups of interest at the top of the social elites. The biggest financial
corporations, banks of investment and credit rating institutions cooperate closely with those
state institutions, which, on one hand, neglected to regulate and control appropriately the
operation of the money system, while, on the other hand, they bailed out the financial collapse
caused by speculation from public money, at the expense of taxpayers.
Kevin MacDonald doubts that a financial elite made up from only WASPs would also
manifest the same attitude. According to MacDonald, the Jewish financiers who caused the
crisis had a condemnable, antisocial attitude towards the non-Jewish world. They did not take
into account the moral and existential consequences of their financial frauds. They did not feel
sympathy or worry for their victims. MacDonald, who dealt with socio-psychology, points out
that, according to the recent results of neurology, human beings are capable of a high degree
identification and sympathy towards the members of their own group, while they did not show
any sign of sympathy for outsiders. This is especially valid for those who are highly
ethnocentric, i.e. they place their own people or nation above all.
In this way, a person having a deep-rooted Jewish conscience can be so cold and
selfish, who is a member manifesting an exemplary community attitude in his social group
consisting of Jews, and who is not tormented by bad conscience or by living through the fate
of the victims. Such a person does not care either about the long-term interests of the society
in which he lives. The changing of times is marked by the fact that, when the investigation
started against Goldman Sachs, it was already possible to ask Lloyd Blankfein, the president
of Goldman, before the publicity of CNBC, whether the financial and economic activity of the
Wall Street is good for America and serves the public welfare.
In the Rolling Stones magazine, Matt Taibbi compared the world’s biggest bank of
investment, the Goldman Sachs to a “great vampire squid”, which is “wrapped around the
face of humanity”. The “thought police” of the ZPC immediately qualified him an anti-
Semite. He was blamed for having surpassed the usual commonplaces on Jews and money,
and reviving such anti-Semite accusation going back to the antiquity, according to which the
Jews, forming an alien and antihuman group, poison the mankind and the society. The
economic parasitism is also an anti-Semite accusation tracing back to old times. According to
this, the financial sector does not produce real values, goods and services that are important
for the satisfaction of human needs, it only withdraws the results of others’ work, piles up the
values produced by others, and it takes part only in their re-distribution at most.
MacDonald does not agree with those who try to refute that the behavior of the Jewish
financial elite fits in the historical pattern of the Jewish ethic. According to MacDonald, the
Jewish ethical code has always contained the different moral norms and forms of behavior
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applied towards the non-Jews. The application of a different moral measure is built in deep
also in the Jewish religious traditions. The income of the financial sector being under Jewish
dominance surpasses, to a great extent, the incomes of the others who work in other sectors of
the economy. The financial and economic resources are gradually accumulated at such groups
of interest, which have an antisocial attitude against the non-Jew America and the non-Jew
inhabitants of the world.
Bernard Lazare (1865–1903), a Jewish public personality in the 19th
century, stressed
that it is necessary to break with the view concerning which the Jews are not responsible for
what is happening with them. Lazare thought that the anti-Semitism, no matter what form it
might take, in fact, can be considered a response to the Jewish exclusiveness and excluding
attitude. The Jewish communities – reaching back to antiquity – managed again and again to
gain power and influence within the Western societies. Their ethnocentric behavior, well-
known high intelligence and expertise in financial issues contributed to this. All this let some
of them get wealth and power. In their success, an important role was played by their moral
separation, the application of the double moral and double measure, as well as their ability to
cluster into well-organized groups excluding others and based upon authority, keeping alive
the feeling of continuous threatenedness.
The present-day money rule world order is getting close to its end. According to our
hopes, its place will be taken by the harmonic world order, and one of the preconditions of
this is the definitive termination of the conflict between Jews and non-Jews. The first step
towards it is to keep the rules of the universal moral that cannot be relativized, as well as to
put an end, by everyone, to the practice of the double moral and double measure.
To what extent can the world financial crisis be linked to an
ethnic group?
David Rothkopf, who is the researcher of the Carnegie Endowment for International
Peace, and, besides this, member of the managing boards of several distinguished institutions,
published a book titled Superclass recently, in which examines closely the global power elite
and the world system controlled by them. He asserts that approximately six thousand people
belong to this global elite, who are the owners, directors and managers of the biggest financial
institutions and corporations. Their decisions affect the lives of nearly all human beings.
World fame is not enough for somebody to be a member of this chosen group. Politicians like
Gorbachev or Blair were temporarily members of it, but are not any more. On the other
hand, Henry Kissinger and Bill Clinton still belong to these six thousand chosen.
The world order created and controlled by them is extremely unequal and unstable.
The time has come for the New York super-bankers and the lords of the City of London,
accounted as the centre of the money empire, to realize: they cannot do with the world what
they did so far. One of the distinguished members of this elite was Peter Sutherland. He
belongs to those who are suitable for nearly all leading tasks, are extremely multilateral and
flexible, i.e. “flexians”. Well, Peter Sutherland was the Chairman of British Petroleum
company between 1997 and 2009. He is also the non-executive Chairman of the Goldman
Sachs International since 1995. In 2008, he fulfilled the position of the Chairman of the
London School of Economics Council, the top tier university of the money empire.
Previously, he was the founding General Director of the World Trade Organization, and,
since July 1993, he was the General Director of the General Agreement on Tariffs and
Trade. He was Chairman of the Board of Governors of the Maastricht-based European
Institute of Public Administration from 1991 to 1996.
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In 2009, Sutherland resigned from his position as the Chairman of British Petroleum,
but he still fulfils many influential functions. As we have already mentioned, he was the non-
executive Chairman of the Goldman Sachs International (a subsidiary of the Goldman
Sachs Group), and the chief advisor of the Goldman Sachs Group. That we have here a
polyhistor “flexian" with extraordinary abilities is shown by the fact that he is the Honorary
Chairman of the Trilateral Commission. As a member of the steering committee, he attended
the conferences of the Bilderberg Group several times, and he is the chief financial advisor
of the Vatican. Peter Sutherland, nevertheless, already was the Attorney General of Ireland,
and, in Brussels, as a member of the European Commission, accounted as the government of
the European Integration, responsible for competition policy between 1985 and 1989.
Between 1989 and 1993, he was the Chairman of the Allied Irish Bank. He worked as a
manager for the Swedish Telefonaktiebolaget LM Ericsson, and, since January 2010, he is
the member of the steering committee of the EU share company Allianz SE. Here we stop
listing, though we could still continue. Nevertheless, even all this is enough to prove that the
altogether six thousand persons belonging to the global elite are not average people, but detain
special power and influence.
When, in May and June 2010, it became possible that the U.S. Securities and
Exchange Commission (SEC) and the Senate would make the leaders of Goldman Sachs
responsible for high amount financial frauds, this, according to observers, caused a
perceptible worry in the district of New York inhabited by Americans of Jewish origin. This
attracted also the attention of public opinion. In that time, several distinguished papers have
also dealt with the question: to what extent can the attitude of Wall Street leading
businessmen and bankers be connected with the fact that they are Jews or have Jewish origin?
For some columnists, the question was not whether the negative characteristics of the Jewish
bankers or the condemnable behavior of such enterprises being in well-known Jewish
property like the Goldman Sachs can be brought in connection with the fact that these bankers
and businessmen are of Jewish origin, and they behave according to the Jewish customs and
traditions. For them, the question was whether the person who criticizes Goldman Sachs or
refers to the reproachable methods of this super bank house is anti-Semite or not?
In America, in the 1980-ies, one of the biggest financial scandals is linked to the name
of Michael Milken. It was him who speculated with high-yield securities called “junk bonds”
on the money market. In 1989, Milken was indicted with 89 charges including racketeering,
securities fraud and insider trading. Within a plea bargain, he pleaded guilty to six charges,
for which he was sentenced to ten years in prison and, in addition, the SEC permanently
banned him from the securities industry. Finally, Milken was released after serving only less
than two years in prison.
Milken, nicknamed “The Junk Bond King”, traded with such bonds, which have
several names in English. All of them refer to such securities, which are classified, at
purchase, as unfit for investment by debt rating specialists. They are not suitable for
investment because they are exposed to the most different risks. Nevertheless, with the help of
junk bonds, Milken amassed a personal fortune amounting to more than two billion dollars,
and in 2007 he was marked as the 458th
richest man in the world by the Forbes magazine.
Pulitzer Prize winner James Stewart, in his documentary book Den of Thieves
published in 1992, revealed in detail how the insider trading spread since 1982, and how it
was used by such unscrupulous speculators like Ivan Boesky, the already mentioned Michael
Milken, Martin Siegel, Dennis Levine, Robert Freeman, Richard Wighton, Timothy Tabor,
John A. Mulheren, Lowell Milken, Robert Wilkis and other similar Wall Street financiers.
Stewart informs the public opinion about those carefully masked, almost mystical financial
manipulations, which, finally, climaxed in the 1987 financial collapse. Milken, Boesky and
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company served as an example for the investors in Enron, Tyco and Adelphia, who tried to
overcome even their masters in the unscrupulous acquisition and market manipulation.
It is well-known that the IQ of the Ashkenazi Jew population is higher than that of the
average Europeans. This can have the conclusion that, if those of Jewish origin play a
dominant role in a certain occupation, for instance mathematics, this is, among others, due to
the fact that their higher IQ make them more suitable for it. When the large-scale financial
scandals burst out, and it became public that the overwhelming majority of the key persons
taking part in them were of Jewish origin, the question was raised: is this related somehow to
their origin? James Stewart thought it was, for what he was severely attacked and his book
was qualified anti-Semitic. For the anti-Semitic accusation, it was already enough that he
frequently mentioned Jewish names. Some argued in the debate as follows:
“If we show that nine of ten street crimes are committed by blacks, it is nothing but a
sociological fact-finding worth the attention. But, on the other hand, if we show that nine of
ten persons accused of crimes with securities are Jews, this is considered an anti-Semite
calumny. Though it is difficult to see any essential difference.”
Michael Kinsley, who graduated from Harvard, was awarded a Rhodes Scholarship,
and, among others, was American Editor of The Economist, was the founding editor-in-chief
of the online magazine started in 2010. It included The Occidental Observer Blog, in the May
2, 2010 issue of which we can read Michael Kinsley’s article. In it, he analyzed in detail how
the collapse of the international money system is judged from Jewish point of view.
In his article “How to Think About: Jewish Bankers”, Kinsley admits that the Jews
play a key role on Wall Street, and finds it is all right if somebody criticizes a Jewish financial
institution like Goldman Sachs. But only to the extent that he does not mention that the
Jewish order of values, the belonging to the Jewry is related to any extent with how the Wall
street and Goldman Sachs operate.
Kingsley writes in this article:
“Sometimes the stereotype about Jews and money takes a harsher form: Jews are
greedy, they lie, cheat and steal for money, they have undue influence with the government,
which they cultivate and exploit ruthlessly, and so on. In recent weeks, many have said this
sort of thing about Goldman Sachs, but with no reference to Jews. Are they all anti-Semites?
No. It ought to be possible to criticize Goldman in the harshest possible terms – if you think
that's warranted – without being tarred as an anti-Semite.”
So, it is possible to argue that the bad habits and condemnable forms of behavior have
something to do with being a Jew. The wider approach is that essence of the Jewish existence
includes the creation of a specific culture. Kevin MacDonald, professor of psychology at
California State University, Long Beach, author of the world-famous three-volume work The
Culture of Critique (1994, 1998, 2002), sees that this argumentation has two important parts.
His first remark is that the Judaism, as a group strategy for staying alive and getting on in life,
has always contained the sharp difference between those within and those outside the group,
as a determining element of the Jewish way of thinking. They applied totally separated moral
rules within and those outside the group. As a consequence, the Jewish moral universe
became a particular one, the ethical attitude towards the non-Jews turned expedient and was
connected to practical efficiency.
Its goal is to maximize the personal profit without any moral scruples. The neglecting
of moral concerns exerted an important effect on the non-Jews. For instance, in the traditional
societies, it was an accepted pattern that the Jews made alliance with those non-Jewish elites
who also lived on others’ work. In this practice, the assurance of the unstopped, continuous
development can certainly be perceived. The Jews were the ideal mediators between all
exploiting elites, exactly because their interests – being a genetically consciously separated
group – considerably differed from the interests of the exploited population. From such
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individuals, it is expectable to manifest maximal loyalty towards the rulers and minimal
scruples, when they regard human beings only as tools for reaching their goals, including their
exploitation.
The second remark of MacDonald is that it must be shown to what extent this double
moral is reflected in the attitude of the Jews, which is present everywhere in the Jewish
religious scriptures. In the long history of anti-Semitic attitude, an outstanding role has always
been played by the accusation that the Jews are in fact misanthropes, who have negative
personal characteristics and are too likely to exploit the non-Jews. He cites Tacitus, the
Roman historian, according to whom Jews “among themselves are inflexibly honest and ever
ready to show compassion, though they regard the rest of mankind with all the hatred of
enemies”.
He refers to German philosopher Immanuel Kant, according to whom “the Jews are
a nation of usurers (…) who are duping the people among whom they found refuge, (…) who made the formula ‘Let the buyer beware’ the supreme principle of their morality in trading with us.”
He also cites from Werner Sombart, the distinguished German sociologist and
economic historian: “With Jews [a Jew] will scrupulously see to it that he has just weights
and a just measure; but as for his dealings with non-Jews, his conscience will be at ease even
though he may obtain an unfair advantage.”
Jewish historian Heinrich Graetz wrote: “He [the Polish Jew] took a delight in
cheating and overreaching, which gave him a sort of joy of victory. But his own people he
could not treat in this way: they were as knowing as he. It was the non-Jew who, to his loss,
felt the consequences of the Talmudically trained mind of the Polish Jew.”
German sociologist Max Weber put it in a more sophisticated way: “As a pariah
people, [Jews] retained the double standard of morals which is characteristic of primordial
economic practice in all communities: What is prohibited in relation to one’s brothers is
permitted in relation to strangers.”
Theodor Herzl, one of the founders and leaders of Zionism, wrote: “Anti-Semitism
was a natural response to the Jewish faults, which, ultimately, led to the persecution of Jews
by the non-Jews: The Jews were called ‘leeches’ who ‘own a tremendous financial power’;
they were ‘the money-worshippers who were not able to understand that a man can act
motivated by something else than money’.”
And, finally, we quote the opinion of Edward A. Ross: “The authorities complain
that the East European Hebrews feel no reverence for law as such and are willing to break
any ordinance they find in their way. (…) The insurance companies scan a Jewish fire risk
more closely than any other. Credit men say the Jewish merchant is often ‘slippery’ and will
‘fail’ in order to get rid of his debts. For lying the immigrant has a very bad reputation. In the
North End of Boston the readiness of the Jews to commit perjury has passed into a proverb.”
It is worth the attention that swindling and fraud has a certain legitimacy within the
Jewish community. The successful swindlers do not deny this, but, on the contrary, they are
the main financial supporters of the given Jewish communities. For instance, Michael Milken
is a member of the Jewish community of Los Angeles, surrounded with great respect, because
he makes generous donations for Jewish programs. Ivan Boesky donated twenty million
dollars to the library of the Jewish Theological Seminary. Mark Rich also spent many
millions on a series of Jewish community issues, including the generous support of the
Birthright Israel program, the goal of which is the strengthening of the Jewish conscience
and the identification with Jewry among Jewish youths. The list of those persons who
persuader Bill Clinton, in the last hours of his presidency, to grant amnesty to Mark Rich, can
be regarded the “Who’s Who?” of the Israeli society and of Jewish charity.
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There is a strong opinion that the Jewish financial elite regards the non-Jewish world
only a tool for obtaining the highest possible profit, and is totally neglecting all moral barriers.
Others put it in the way that the financial elite behaved much more like an organized criminal
gang, and not as a community of responsible citizens, the members of which are committed to
the long-term survival of the society. The perpetrators of the organized crime usually
originate from the lower social classes. While the financial collapse was caused by the groups
living at the top of the society. The cooperation between the super-rich financial corporations,
credit rating agencies and trustees placed in the government made it possible to bailout the
hazardous elite from public money and to avoid the real fact-finding and to call the
responsible to account. It is doubtful that all this would have happened exactly in the same
way if the control of the governmental and financial sphere had been in the hands of the
WASPs fulfilling previously the role of the power elite in the United States.
Kevin MacDonald thinks that, using socio-psychological terms, the way the Jews
behave with the non-Jews can be qualified as sociopathy. The sociopath personality can
integrate into the society with difficulty, and, in a certain respect, his psychic orientation and
behavior differs from the attitude qualified normal of average people. Certain groups of the
Wall Street super-rich financiers did not care about the moral consequences of their hazardous
deals. They did not feel sympathy for those who were stricken by these consequences.
Modern neurology has shown that those people who are quite capable of sympathizing with
those fellow humans with whom they belong to the same ethnic or social group, but they are
not capable of the same empathy, sympathy for outsiders. This is especially valid for those
who are highly ethnocentric.
As a consequence, a Jew with a strong identity can be an example of a man with a
community feeling and thinking with solidarity, if he is within his own group, and the same
person can behave with cold-bloodedness and coldness towards outsiders, without feeling the
least remorse or empathy towards the victims. From all this, it is obvious that he does not any
responsibility for the long-term future of the society in which he lives.
All this can be marked well by the fact that, when Lloyd Blankfein, the first man of
Goldman Sachs, was asked, in a nationally broadcasted TV-programme, whether the
existence of Wall Street, taking everything into account, is good for America or not. Does it
do anything that has a positive social effect? Blankfein could not give a convincing answer to
this. The characterization of Goldman Sachs by Matt Taibbi has nearly become a proverb:
“The world's most powerful investment bank is a great vampire squid wrapped around the
face of humanity, relentlessly jamming its blood funnel into anything that smells like money.”
The “thought police”, which has greater and greater influence, immediately qualified
this analogy of the Rolling Stones columnist as anti-Semite. They said: “This sentence
surpassed all usual commonplaces on Jews and money, and connects to other classical anti-
Semite topics, according to which the Jews, forming an alien and antihuman group, poison
the mankind and the society, and, to a certain extent, even refers to the ill-famed blood
accusation, according to which the Jews had the habit to suck out the blood of Christian
infants to prepare matzos from it.”
He reminds of the quite common view according to which the financial sector does not
take part in the production of value-bearing goods and services, but only in their distribution,
and, thus, in fact it takes away wealth from the whole of the society. The economic parasitism
is an accusation against the behavior of the Jews looking well back to the Middle Ages.
Nevertheless, it is a fact that the financial sector being under Jewish control has totally
subordinated the real economy and has actually drawn its income to itself.
Can it be proved that the behavior of the present-day Jewish financial elite is
connected to the ethnic attitude of Jewry to the non-Jewish communities in the history? This
question was tried to be answered by Albert Lindemann in his work Esau’s Tears issued in
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1997. Lindemann’s thesis is that modern European anti-Semitism is closely linked to the “rise
of the Jews”. The cultural, political, and economic power of Jews developed in the nineteenth
century. Consequently, the real conflicts of interest between groups had a determining role
from the point of anti-Semitism. Anti-Semites often exaggerate Jewish behavior, and
occasionally even invent it.
Nevertheless, Lindemann challenges the still common view that anti-Semitism is
nothing more than the fundamentally irrational residues of Christian religious ideology or the
psychological projections of inadequate personalities. He investigates this question in detail in
Austria, England, France, Germany, Romania, Russia, and the United States. His attempt is to
find commonalities and differences. From among all these countries, it is worth examining
first the situation of Jews in Russia. Lindemann notes that Jews were highly resistant to
attempts by the tsarist government to russify them. They remained a nation apart in dress,
language, diet, and by keeping the rules of their own community strictly.
The Russian authorities believed that Jews exploited the peasants economically and
corrupted them with alcohol, exerting a destructive effect on the peasant community. At the
same time, tsarist oppression of Jews was far less severe than usually depicted. Jews could
own land, engage in commerce, and attend universities. Nor were Jews the only group subject
to restrictions and under suspicion by the authorities. The requirement to serve in the military
reflected a suspension of a peculiar Jewish privilege.
Most Jews were restricted to the Pale of Settlement, an area established for them by
the tsarist government, but this area was larger than France or Spain, and forty times the area
of modern Israel. As a consequence of the liberalization of restrictions concerning the
settlement and movement of Jews in the 1860s and 1870s, many economically successful
Jews left the area. The impoverished Jews remained there, who, because of their severe
Jewish religious laws, avoided certain economic activities. Nevertheless, it is a fact that the
vast majority of Jews were much more upwardly mobile than other groups in Russia. Their
success placed them in competition with other groups that exerted pressures to control the
numbers of Jews in business and the liberal professions.
According to historians such as Simon Dubnow, anti-Jewish pogroms were
spontaneous uprisings in opposition to the developing Jewish economic domination. Indeed,
the government abhorred outbreaks of mass violence as a sign of popular discontent and in
some areas was quite effective at preventing it. The government’s response to the pogroms of
1881 was to place limits on Jewish economic activities in order to protect the peasants. It
imposed quotas of around 10 percent on Jewish admission to universities. The result was that
Jewish emigration to the West intensified. Following the Kishinev pogrom of 1904, the
Jewish participants and organizations both in Russia and the West already played a
determining role.
Jews within Russia radicalized and increasingly turned to revolutionary socialism
because they believed they could reach their political and economic aspirations most
effectively in this way. The already effectively operating international money cartel and the
Jewish banking dynasties playing a leading role within it financed the Jewish organizations.
Jewish money power was widely regarded by the Russian government as directed at
undermining Russia and the tsar. For example, Jacob Schiff financed Japan’s war against
Russia. This is partly connected with the fact that the Romanovs hurried to help President
Lincoln during the American Civil War, and the Russian Fleet in the Pacific sailed to San
Francisco, while the Baltic Fleet to New York.
In our days, it is already a proven historical fact that the war between North and South
in America was fomented by the money power over the nations. The South was financed by
the Paris Rothschilds, while the North by the London Rothschilds. This war was necessary
because the international bankers could not draw the money system of the United States under
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their control, and they thought they would create two states of equal power and hold both of
them in check with each other. If they duly indebt both of them, the transnational money
cartel controlled by the House of Rothschild can apply the same policy of power balance also
in America, which they successfully tried out in Europe. In World War I, the world Jewry –
especially the organized Jewry – did not show much willingness to defend Russia, and
regarded Germany a more tolerant state, more acceptable for them.
The most aggressive form of twentieth-century anti-Semitism emerged in Germany,
but Hitler and the Hitlerism, as a political factor deemed to win power, in fact, was born in
Versailles, where, in turn, the international money cartel and the freemasons in its service
played the key role. One of the motors of Hitlerism has been the belief that Jews were
instrumental to the success of the Bolshevik revolution. On page 429 of his book Esau’s
Tears, Albert Lindemann notes that “citing the absolute numbers of Jews, or their percentage
of the whole, fails to recognize certain key if intangible factors: the assertiveness and often
dazzling verbal skills of Jewish Bolsheviks, their energy, and their strength of conviction”
This comment fits well with the general tendency for Jews to be highly successful in a
wide range of areas requiring high intelligence, conscientiousness, and personal ambition.
Jews who became radicals retained their high IQ, their ambitiousness, their persistence, their
work ethic, and their ability to organize and participate in cohesive, highly committed groups.
Jewish Bolsheviks retained their Jewish identities, and this was obvious also in the conflict
between Stalin and Trotsky. In Russia, there were several leading personalities who were not
Jews or of Jewish origin, but who respected and imitated the Jews, and established intimate
friendships with them.
Lindemann also notes that Jews were also highly overrepresented as leaders among
the other communist governments in Eastern Europe as well as in communist revolutionary
movements. It was so also in Germany and Austria from 1918 to 1923. He also discusses the
biological moment of Judaism. Jewish communities, if possible, prevent intermarriage. The
converts have a lower status, and Judaism is generally not interested in proselytism.
Otherwise, Lindemann is convinced that Judaism is much more an ethnic group than a
religion. He labels the practice of Judaism “protoracism” and suggests that it contributed in
vague, often contradictory ways to modern racism, especially to its concern with racial
exclusiveness and purity.
Racialist thinking, i.e. keeping account the racial origin, was typical of the nineteenth
century generally. Among Jews racialist thinking can be found throughout the Jewish
intellectual spectrum. It was common among Zionists and typfied several prominent Jewish
intellectuals, such as Heinrich Graetz and Moses Hess. There was some fantasy involved in
anti-Semitic beliefs about Jews, but the nineteenth-century anti-Semitic idea that Jews
regarded themselves as a superior race was also based on real Jewish behavior, attitudes and
experience. Lindemann states that Jews actually do not want to understand their past – or at
least those aspects of their past that have to do with the hatred directed at them, since
understanding may threaten other elements of their complex and often contradictory
identities.
On page 535 of his book, he notes that especially in popular history, a strong tendency
exists to favor an emotionally laden description and narrative, especially of colorful, dramatic,
or violent episodes, over explanation that employs calm analysis or a searching attention to
historical context. Murders, arsons, and rapes are described with moral fervor, rhetorical flair,
and considerable attention to the details, but background, context, and motives are often
slighted or dealt with in a remarkably thin and tendentious fashion. Lindemann considers that
this impassioned, moralistic rhetoric and simplistic analysis is to be found in Robert
Wistrich’s Anti-Semitism: The Longest Hatred and in the writings of Holocaust historians
Lucy Dawidowicz and Daniel J. Goldhagen. He detects in Lindemann a certain
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incomprehension regarding the powerful need among Jews to remain a people apart even in
the globalizing contemporary world. Modern anti-Semitism is fundamentally rooted in real
conflict between ethnic groups and that it has resulted in tragical intrasocietal animosity.
Lindemann asks the question on page 543 of his book:
“What is the utility of meaning of Jewish survival in modern times to a modern,
secular consciousness? (…) How can Jewish survival be considered any more important than,
say, the survival of Wends, Byelo-Russians, Chechens, or Croats. In the context of a
multicultural society such as the United States, why should a Jewish ethnicity or cultural style
resist blending and “disappearing” any more or any longer than the cultural styles of the
Germans, Swedes or Irish? Intermarriage and assimilation have occurred and are occurring
in most other communities, but do prominent Armenian-American or Japanese-American
leaders publicly address the issues with such terms as “bloodless Holocaust” and “candy-
coated poison”? (…) The leaders of Jewish communities seem to believe that the question of
the Jewish ethnicity is fundamentally different from the other groups. This is when the Jewish
attitude is getting close to ethnic chauvinism.”
These questions are particularly relevant because Jewish power and influence are quite
high in the contemporary world, particularly in the United States. And there is no question
that official American Judaism is becoming more traditionally separatist in its focus and more
concerned to prevent intermarriage. Multicultural societies characterized by ethnic
chauvinism and conflicts of interest among their constituent groups cannot survive long
without the intense intrasocietal hatreds and animosities that have been the consistent
consequence of the rise of a powerful Judaism in Western societies.
In his article titled A Revisionist View of Anti-Semitism, Kevin MacDonald states that
Lindemann’s findings fit well with an approach to group conflict, which he asserted to be
based on an unstopped evolution and continuity. His book is basically concerned with
nineteenth- and early twentieth-century anti-Semitism, but, according to MacDonald, these
kinds of findings may be generalized throughout Jewish history. Jewish characteristics,
including especially resource competition with non-Jews, have always been central to
understanding historically important examples of anti-Semitism.
There is a long history of Jewish religious apologetics and historiography that has
functioned in the same way as much contemporary Jewish historiography. The essence of this
was to interpret history and Jewish religious law in a manner that presents Judaism as a
morally superior beacon to the rest of humanity. Lindemann emphasizes the ethnic,
“protoracist” elements of Judaism, although he is trying to avoid offending Jewish
sensibilities. Throughout their history, Jews have condemned endogamy and exogamy. This is
clearly apparent in Jewish religious writings. On the basis of the science of genetics, it is
already a proven fact that Jews managed to remain genetically distinct from the groups they
have lived among despite having lived among them for centuries.
Why exactly the Jews?
Dennys Prager and Joseph Telushkin published, in New York, the book titled Why
the Jews?, in which they try to find an answer to the question to what extent can the attitude
formed against the Jews be considered unique, and what could be done for the sake of the
definitive annihilation of the anti-Semitism. The goal of their book was to analyze how the
Jews themselves interpret anti-Semitism, and to refute those modern attempts which deny the
specific Jewish causes of the hatred against the Jews. Their starting point is that ant-Semitism
is a unique phenomenon. Even the word “Jew” itself stirs up the emotions, therefore an
appropriate answer should be found to this question, with the objectivity of the science.
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Professor Kevin MacDonald attempted at this objective analysis in his work
Separation and Its Discontents: Toward an Evolutionary Theory of Anti-Semitism.
MacDonald describes how a persistent anti-Semitism, which goes back to Classical times, has
developed, in parallel with an equally persistent and obdurate Jewish attitude in the course of
history, amongst different peoples. MacDonald's basic concern is to show how Jews,
exclusivist to the point of being racist, clannish, and endogamous, always have stood out, with
their isolation and their irritant presence throughout history. Although isolated, they were not
marginalized at all, becoming some kind of passive victims. Rather, due mainly to
endogamous practices, they managed to achieve a program of "eugenics", as a result of which
a self-consciously isolated emerged, with a relatively clean "gene pool". This genetic basis,
combined with the specific Jewish child-rearing practices, provided progeny of higher
intelligence than that of the peoples in whose midst they have resided.
And so – according to MacDonald’s own term – a "group evolutionary strategy"
gradually emerged, which proved to be successful. The professor of Long Beach University
views Judaism and Jewish identity not so much as a religion, but as a life strategy, not only
for self-preservation, but for advancement. The author sees the varieties of anti-Semitism not
as representations of aggressive attitudes towards Jews. Rather, he is on the opinion that, in
whatever form it has emerged, anti-Semitism has always been a defensive strategy, some kind
of response to perceived threats posed by a group, which was able to attain domination for a
community in whatever areas they chose to exert themselves.
“Jews are highly adept at achieving their goals..." This is due to that high intelligence,
mentioned earlier, which has allowed them to gain a dominant position in finance, the
economy in general, and as socioeconomic "middle-men." At the same time, this inward-
turning, endogamous folk, the members of which passionately stuck to their clan, were
pleased at seeing that others do almost all physical work instead of them. They have
maintained a basic attitude of contempt for non-Jews throughout history, an attitude, which
has been and is repressed in front of the host population only for "strategic" reasons.
Jews of most different varieties – e.g. Zionists, religious or atheists – will always be
Jews and as such will be concerned first of all with self-preservation and their own economic,
financial prosperity, no matter what form it takes. This happened at the time of the Spanish
Inquisition, when they denied their Judaism altogether. In a word, Jews can practice
Orthodoxy, but they can also reject Orthodoxy in the name of reform. They can be Zionist or
anti-Zionist, espouse varieties of "universalism," such as Marxism, or they can even declare
themselves to be anti-Marxist. It really doesn't matter, regarding the essence.
Driven by a benign phylogenetic instinct for self-preservation, Jews, even if seemingly
divided amongst themselves, will always stick to their specific Jewish existence. At the base
of community life, there are always strategies at work, which serve the preservation of the
specific Jewish form of life. Strategies, which, indeed, often have gone well beyond simple
self-preservation. Thus, anti-Semitism, in whatever form it has taken, must be seen as
responding to Jewish exclusivity. Jewish success is something which many non-Jews see such
an advantage that has been gained by the Jews in large measure through the expropriation of
the labor of others. MacDonald takes into account also the religious aspects, for instance that
the Jews repudiate the messianic role of Christ, which may have contributed to the
development of anti-Semitism. Of greater importance for him, though, was and is the clash
over material resources. To this, we can only add that the wealth is power, and who detain the
wealth will exert the power over those who do not have property.
and at times human, between due to eugenic selection, and less intelligent, but
somehow, one gets the feeling, harder working majorities. The question arises: Have such
majorities – forced to defense against a collectivist, endogamous group, possessed of greater
intelligence – ever succeeded, through evolved anti-Semitic strategies, in defending their
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interests? MacDonald says there have been occasions providing equally collectivist and
unified responses to the Jews, as they were also able to enforce their interests against the non-
Jews. Among others, the author cites the anti-Semitic response, which emerged during the
late Medieval period, one in which a rising European Christian middle class saw the
seemingly perennially successful Jew as a concrete threat regarding control over material
resources. As a response, they formed a unified and organized Christian resistance in order to
stop the Jewish advance deemed pernicious. Another example to deal effectively with Jewish
economic dominance and exclusiveness was provided by Spain in the mid-15th century.
In the previous centuries, there had been major efforts to forcibly convert Jews to
Christianity. Some Jews chose not to flee, but, indeed, converted. But the angered Spaniards
discovered, though, that the so-called "New Christians" in fact often practiced Judaism in
secret, and that they continued traditional Jewish endogamous practices. At the same time,
since they looked Christians from the outside, they had succeeded in holding on to their
predominant economic roles in Spain. They were those secret Jews who played an important
role also in other countries, especially the period following the Enlightenment. The response
to this was the imposition, in the mid-15th century, of the laws according to which devotion to
Christianity would be equated with the "purity" of blood. The church and state recognized
that, in dealing with a cunning, resourceful, and, when necessary, self-masking people,
baptism alone could not assure that the people converted in this way to Christianity would not
continue to follow – within themselves and secretly – their own traditions and would not live
according to their separatist values and laws.
Thus the much talked-of Inquisition, at least in part, resulted from an effort to "purify"
Spain, if necessary by expulsion, of these secret Jews, who became Christians only
apparently. The society of the time responded to the Jewish racialist separatism with a racism
reflecting the needs and will of the majority. Thus, the Spanish response was a relatively
moderate racism, which, in fact, was a mirror-image response to the Jewish racism. The
Jewish racialist cohesion provided that demographic and psychological conditions of the
sustenance of the Jewish community. This Spanish racialist anti-Semitism represented a new
stage in the evolution of general anti-Semitism.
In general, authoritarian systems could offer the most successful resistance to
exclusivist, collectivist Judaism. When states, institutions, or populations or societies in
general organized themselves in a collectivist way within authoritarian systems, they could
defend their interests relatively successfully against collectivist Jewish entities. These well-
organized communities have never changed essentially throughout history. What the author
sees as central Western tendencies – universalism and individualism – and which are
connected to the individual, were tendencies which Jews often have used for their own
purposes, in the way that, referring to the universal and the individual, often have inhibited
the effective collectivist federation and organized defense of certain populations and national
collectivities.
The most effective "mirror-imaging" response to Jewish racialist collectivism was
posed by National Socialist Germany. It rejected all kinds of universalism and individualism
characteristic of Western Christian societies, and laid emphasis upon racial purity and group
cohesiveness. This made the ideology of National Socialism the most developed "mirror-
image" of Judaism. There had emerged a truly effective response to Jewish racial
collectivism, in the name of an also collectivist, egalitarian – but certainly authoritarian – folk
community. MacDonald does not deny the facts which are nowadays expressed with the term
Holocaust. Nevertheless, what is of importance for him in National Socialism was its
collectivist and authoritarian character, the essence of which is that a somewhat egalitarian
folk community, headed by a nationally committed leader, had been able to pose an effective
challenge to Jewish racialism.
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As far as the post-World War II Western world is concerned, Professor MacDonald is
not too optimist. He is particularly worrying about the fact that, due to the emphasis upon
universalism, individualism and pluralism, it has been and will continue to be difficult or
impossible to develop a unified and cohesive non-Jew society, which could defend itself
united and organized against Judaism. Ethnic politics is becoming of ever greater importance
not only in the United States, but throughout the Western world in general. According to
MacDonald, only homogeneous, collectivist societies have offered effective resistance to
Judaism, and there will remain a fundamental and non-resolvable opposition between Judaism
and prototypical Western political and social structure.
In Chapter 6 of his book, MacDonald deals with Jewish strategies concerned with
responding to anti-Semitism in its various evolved forms. Outright denial of Judaism and
Zionism, anti-Zionist assimilationism, adherence to Orthodox usages, appeals to universalism,
individualism, and pluralism – all have been and are forms which Jews can and will assume to
assure the interests and existence of their group. which, Therefore, Judaism is not a religion,
but, rather, a kind of organic form of life, the goal of which was the optimal assurance of
survival and advancement.
MacDonald differentiates the separation, isolation of Jews from their
"marginalization", i.e. from being closed out from the society. Due to their eugenically
determined strong community, they gained a determining role in the United States, but also in
other Western countries, in certain financial and economic fields, such as the film industry,
and, as important actors, control the society as wire-pullers, from the background. This most
racist – i.e. racially most separatist and most keeping together – of all peoples enforces its
endeavours with a variety of strategies, for instance by defending pluralism. MacDonald does
not give a convincing answer to the question why Jews, or at least large numbers of them,
chose to remain at least identifiable as Jews, sometimes in rather dire circumstances. In the
course of history, anti-Semitism in general and the Holocaust in particular influenced in a
determined way the Jewish community identification.
It is true that Jews have been very successful financially and economically. This
circumstance, nevertheless, has not secured them against being marginalized from the social
and economic life from time to time. In our time, the Jewish communities are quite successful
in a variety of areas, e.g., in finance and in mass media, but they still have to count with the
growing antipathy, called by MacDonald "evolutionary anti-Semitism". In other words, it
means that, although they are extremely influential and wealthy, they still form a separating
minority group, which can be marginalized, pushed to the edge of the society very quickly.
In the anti-Semitism prevalent in today's world, the "self-deception" of Jews is present,
which MacDonald regarded a "strategy" for group cohesiveness. We think that, when certain
Jewish communities regard themselves victims, it cannot be considered only self-deception.
Jews have very legitimate reason to fear anti-Semitism. There may be hints of paranoia, from
time to time, but, as that marvelous expression puts it, "Just because you're paranoid, doesn't
mean that you're not being followed." Mention has been made of Professor MacDonald's
selective mining of Talmudic sources. Namely, in this respect, he follows the precedent of
Houston Stewart Chamberlain and Alfred Rosenberg. Some of his critics reproach to
MacDonald that, to a certain extent, he himself applies a somewhat conventional racist
approach, albeit far more sophisticated and scientific than average, when he asserts that Jews,
after all, are the original racists, therefore they will have to live with a continuously evolving,
but justifiable anti-Semitism.
We can draw the conclusion that the secure way would be for Jews if they
outdistanced, to a certain extent, or even denied their own tribal religion, traditions and
proven rules of behavior. For the writer of the present lines, the crucial point is that the
science does not make it possible to accept the assertions of Jewish mythology as proved
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knowledge. The Old Testament must be recognized as a mythology, similar to the
mythologies of other peoples. Thus, this also involves the conclusion that the things included
in it cannot be accepted verbatim in the 21st century, and the attitude of a whole people cannot
be regulated on this basis. Many branches of science support Kevin MacDonald’s research
results according to which the specific Jewish existence can be regarded a successful survival
and development strategy. As an outcome, there are more persons with outstanding
intelligence among Jews than among white people belonging to the Caucasian race.
Nevertheless, this does not change the fact that still more geniuses can be found among white
people because the number of those who belong to this race surpasses many times the total
number of Jews living in the world.
Israel Shahak – “the world's most conspicuous Jewish anti-Semite”
Israel Shahak (1933–2001) was a professor born in Poland, who taught chemistry at
the Hebrew University of Jerusalem. Between 1970-1990, he was president of the Israeli
League for Human and Civil Rights. Shahak was thoroughly concerned about Judaism, and
his writings in this field generated thought-provoking arguments even outside Israel. In 1994
he published Jewish History, Jewish Religion: The Weight of Three Thousand Years. In it he
proposes that most nations' histories are initially ethnocentric, and the given people has a
central role in it. This people considers its own language, traditions, culture and world-view
natural and self-evident, and any deviance from this they deem unnatural, to different extent.
After this initial period, however, a period of critical self-analysis follows, which gradually
incorporates other perspectives. Jewish emancipation by the Enlightenment was a dual
liberation, according to Shahak.
The Jews could get rid both of the Christian anti-Semitism and the Jewish “ghetto
priesthood” with its strict imposed scriptural control. Nevertheless, the history of Judaism has
not yet gone fully through the modern critical re-evaluation. The open public discussion of the
Jewish ideology requires that the participants should relate equally or similarly to Jewish
chauvinism as to anti-Semitism, and other forms of xenophobia, chauvinism and racism.
Shahak was convinced that the influence of the Jewish chauvinism and religious fanaticism is
bigger than that of the anti-Semitism. He asserted that it is possible to combat both anti-
Semitism and Jewish chauvinism only at the same time.
According to Shahak, Talmudist Judaism is a totalitarian religion, in which the
Rabbinic laws regulate all aspects of Jewish life. He refers to Karl Popper’s closed and open
society concept, and to the way how Popper analyzed Plato’s ideas concerning the
authoritarian way of thinking. He agreed also with the fact that Plato’s views influenced the
Rabbinic teachings. Shahak is on the opinion that Jewish chauvinism and religious fanaticism
is rooted in this theological tradition. These religious roots of Jewish ideology brought about
important consequences: on one hand, the attempts of Western analysts to describe the current
Israeli policy with purely secular terms – e.g. imperialism, democracy, and so on – proved to
be basically wrong. On the other hand, Jewish chauvinism unwillingly affects anti-Semitism,
so they can only be fought simultaneously.
Shahak reviews history from the beginning of the past millennium to the appearance
of national states. In this period, the majority of the Jews lived in isolated communities,
within the frames of Rabbinic law. These communities were controlled by non-Jew monarchs
and ruling classes, and used them to support their rule over the non-Jew peasant society. The
peasants revolted against their feudal oppressors from time to time. It is wrong to present this
only as if they were actions exclusively against the Jews. Therefore, in his book, he urged the
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re-evaluation of the Jewish history from this universal point of view, which better fits the
results of the science of history. Shahak regards the Zionism an attempt at the reorganization of the way of life in a
closed Jewish community, and sees that this endeavour can lead to discrimination against
non-Jews. He even argues with the fact that the Zionists frequently allied with anti-Semites.
Many examples of such alliances are well known. Theodor Herzl allied himself with the
notorious Count von Plehve, the antisemitic minister of Tsar Nicholas II. Similarly,
Vladimir (Ze’ev) Jabotinsky made a pact with Symon Vasylyovych Petlyura, the ataman
(commander in chief) of the Ukrainian army. According to Shahak, Petlyura’s forces
massacred some 100,000 Jews in 1918-21. Ben-Gurion maintained good relations with the
French extreme right, including some notorious anti-Semites who played a key role in the
Algerian war.
Joachim Prinz, a Zionist rabbi welcomed Hitler's rise to power, because they were
both convinced that the races play the decisive role in history. Prinz manifested hostility to the
assimilation of Jews among Aryans. Shahak mentions that Prinz, who celebrated Hitler's
National Socialist German Revolution and the defeat of liberalism in his book Wir Juden (We,
Jews), published in 1934, subsequently emigrated to the USA. There he rose to be vice-
chairman of the World Jewish Congress and one of the leaders of the World Zionist
Organization. Shahak draws the conclusion that the fight against Jewish chauvinism and
exclusivity can only be successful if it also includes the criticism of classical Judaism. This
fight is even more important than the struggle against ant-Semitism or other forms of racism.
According to Shahak, the suppressive measures in the West Bank are motivated also
by Jewish religious fanatism. He quotes from a booklet published by the Central Region
Command of the Israeli Army, whose area includes the West Bank. In this booklet, the
Command's Chief Chaplain writes:
“When our forces come across civilians during a war or in hot pursuit or in a raid, so
long as there is no certainty that those civilians are incapable of harming our forces, then
according to the Halakhah they may and even should be killed. (…) Under no circumstances
should an Arab be trusted, even if he makes an impression of being civilized. (…) In war,
when our forces storm the enemy, they are allowed and even enjoined by the Halakhah to kill
even good civilians, that is, civilians who are ostensibly good.” (Fisk, Robert. Religion in the
Middle East: the fundamental problem, The Independent, December 3, 1997.)
Shahak called all forms of bigotry, of blinded thinking morally reprehensible and said:
"Any form of racism, discrimination and xenophobia becomes more potent and
politically influential if it is taken for granted by the society which indulges in it." For Israeli
Jews, he believed: "The support of democracy and human rights is....meaningless or even
harmful and deceitful when it does not begin with self-critique and with support of human
rights when they are violated by one's own group. Any support of human rights for non-Jews
whose rights are being violated by the Jewish state is as deceitful as the support of human
rights by a Stalinist...." As a leading Israeli human rights activist and Holocaust survivor,
Shahak reviewed Jewish fundamentalist history, examined its strains, and explained the
dangers of extremist messianic ones. They oppose equality of Jews and non-Jews and destroy
democratic values by espousing dogma calling Jews superior to all others. (Stephen Lendman:
Religious Fundamentalism in Israel, August 12, 2009)
In his above mentioned article, Stephen Lendman quotes an Israeli commander
explaining the military's mission:
"We are the Jewish people. We came to this land by a miracle. God brought us back to
this land and now we need to fight to expel the Gentiles who are interfering with our conquest
of this holy land."
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Extremist Israeli rabbis teach the same ideology. In 2003, Rabbi Saadya Grama, in
his book titled Romemut Yisrael Ufarashat Hagalut (The Majesty of Israel and the Question
of the Diaspora), argued that non-Jews are "completely evil" while Jews are genetically
superior. Reform and conservative rabbis condemned it. Extremist orthodox ones endorsed it.
Some more moderate ones also saying Grama advocates separating Jews from an intrinsically
hostile anti-Semetic world. Rabbi Yosef Blau called the book "a call for a superior people to
withdraw from the world and live in isolation while submitting to its enemies and placing
trust in God."
In 2007, Israel's former chief rabbi, Mordechai Elyahu, called for the Israeli army to
mass-murder Palestinians. In fanatical language he said:
"If they don't stop after we kill 100, then we must kill 1000. And if they don't stop after
1000, then we must kill 10,000. If they still don't stop we must kill 100,000. Even a million.
Whatever it takes to make them stop."
In March 2009, Shmuel Eliyahu, chief rabbi of the town of Safed in Galilee, called
for "state-sponsored revenge" to restore "Israel's deterrence....It's time to call the child by its
name: Revenge, revenge, revenge. We mustn't forget. We have to take horrible revenge for the
terrorist attack at Mercaz Harav yeshiva," referring to an earlier incident in which eight
students died.
In his referred article, Stephen Lendman emphasizes that the religious extremism
makes it impossible to find any kind of reasonable solution to the Israeli-Palestinian conflict.
Israeli extremes are in minority, but exert a considerable influence on politics. This threatens
the peace and undermines the possibility of establishing a sovereign Palestinian state. In his
book titled A Little Too Close to God, David Horovitz recalls that, before the assassination of
former Israeli Prime Minister Yitzhak Rabin, he attended anti-Rabin rallies sponsored by
Binyamin Netanyahu that he describes in these words:
“I felt as if I were among wild animals, vicious, angry predators craving flesh and
scenting blood. There was elation in the anger, elation bred of the certainty of eventual
success.”•
In his book Terror in the Mind of God: The Global Rise of Religious Violence, Prof.
Mark Juergensmeyer reports on a conversation he had with Yoel Lerner, an activist leader
who served time in prison for his part in an attempt to blow up the Dome of the Rock, the
Muslim shrine. Together with many of his colleagues, Yoel Lerner was on the opinion that it
is located almost exactly on the site of the Jewish Temple that was destroyed almost two
thousand years ago by the Romans. Lerner, who believed in a form of Messianic Zionism,
said: “Messiah will come to earth only after the temple is rebuilt and made ready for him”.
Thus, the Jews will have to provide for it should happen. This is the dominating opinion in the
wide circle of the Israeli society, even on the top levels. With a religious passion, they strive
at a Greater Israel exclusively for the Jews, and they consider the Jewish state an acceptable
tool for the violent removal of Arabs, and are willing to continue the struggle until the Arabs
leave.
“When victims rule”
On the website www.jewishtribalreview.org, a 30-chapter, 2,000-page set of studies
can be read on the present-day situation of Jewry and on their role in the controlling of the
world, written by a community of authors called “Crosswinds Collective”. The title of their
work is When Victims Rule – A Critique of Jewish Pre-eminence in America. This unique
work contains altogether ten thousand verbatim quotations from more than four thousand
sources. The bibliography list makes 117 pages. Mostly scientific works, mass-media
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programmes and documents of Jewish media were processed. The whole of the work
confronts all forms of partiality, bigotry and racial separatism. The impartial revelation of the
facts about the wealthiest and most influential ethnic group of the United States is a brave
deed.
The critique of this powerful group’s ethnocentrism, unconditioned solidarity within
the group, racism, unethical behavior, double moral, political influence, special relation to a
foreign state, as well as its role played in the exertion of the financial, economic and political
power cannot be considered a condemnable attitude. In the ethic democracy, the most
important human right and political freedom is the right of unveiling the partiality, hypocrisy
and unjust power exertion of elite being on power.
The group of authors questions – mostly on the basis of the data of Jewish researchers
and social scientists – those embellished explanations (fairy tales) with which the organized
Jewry “feeds” both the Jews and the non-Jews. This large fact-finding and revealing work is
thoroughly analyzed by Israel Shamir in his 22-page article titled Discussion of Anti-
Semitism, which can also be found on the internet at the following address:
http://www.israelshamir.net/English/antiSemit.htm. Israel Shamir, who has already created an
extremely valuable oeuvre, lives in Israel, but he recently converted to the orthodox Christian
faith. Shamir asserts that Judaism has always strived at destroying Christianity, and, therefore,
the essence of Jewish existence can only be understood really thoroughly if we also
understand that the Jewry was destined to struggle against Jesus Christ and Christianity.
Shamir thinks that the person who becomes a secular humanist, is becoming Jewified and
ultimately actually becomes a Jew:
“The Jews represent certain Spirit that can't be defeated but by spirit. The belief that
there is no God, that Man is self-sufficient (Humanism), that the World is realizable without
recourse to the concept of the Absolute Spirit (God), is the triumph of Judaism over other
peoples. On this basis alone these peoples are delivered to Globalism and ordained to
destruction.”
Before presenting in detail Shamir’s article, we would like to emphasize that, in our
opinion, the decisive question that divides between a Christian and a non-Christian is whether
we can or not undertake – at least as an endeavour – the requirement that we should love our
neighbors as ourselves and we should do to others as we would have them do to us. All folk
mythology or tribal religion, which rises a people above another, which proclaims and
enforces separation, in fact denies the Christian values that preaches the equality of all men.
Shamir proceeds to the analysis of the huge material of When Victims Rule only on
page 11 of his article titled Discussion of Anti-Semitism. He simply calls the group of authors
“The Author”. He sets forth that in "free societies", anyone who wants may write, and
publish, works that attack Christianity. It is possible assail the "historical revisionism" of
Afro-centrism; deconstruct the myths of Hinduism; defame the Pope; disdain Republican,
Democratic, communist, or any other ideology; emblazon the whole of Islam as a hotbed for
irrational mania and terrorism; write entire volumes about the alleged worldwide Japanese
economic "conspiracy"; and vilify the entirety of the nebulous entity known as the "white
establishment" and anyone dictated by skin colour to be within it.
But, curiously, in the vast expanse of deconstructive engines of all and everything, one
cannot criticize the sacrosanct domain of Jewish history, politics, and identity, unless the
critic is willing to be systematically marginalized in all walks of life, prepared to be tarnished
and branded as a contemptible hate-filled "anti-Semite", risk losing her or her job, and be
categorically lumped into mainstream society's moral and intellectual garbage dump reserved
for the likes of the Nazis and Ku Klux Klan.
The biased public status so aptly described by the Author causes much mental anguish
to Americans of Jewish origin and separates them from their non-Jew compatriots. Even more
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regrettably is the fact that it contributes to the loss of life in Palestine. That is why a good new
deconstruction of Jewish history, politics, identity, religion and tradition is certainly needed.
Especially as the critical works of 1920s and 1930s became outdated. The Author has
followed the trail blazed by Professors Albert Lindemann of the University of California,
Kevin MacDonald of California State University and Israel Shahak of the Hebrew
University of Jerusalem, and other researchers. The Author collected immense amount of
data, and the bibliography is colossal. It seems as if the book was produced by a Jewish
Studies department of a well-endowed American University. It could be a companion volume
to Encyclopaedia Judaica. Severely abridged, it would be readable and still impressive.
According to Shamir, this not only large-size, but also high-level work could be used
whenever there is a discussion on the Jewish influence in American politics or media. For
instance, the recent debate between Michael Neumann and Jeffrey Blankfort would be
easily substantiated by referring to this book. Both Americans of Jewish origin feel
repugnance to the Jewish power in the United States, which did not get to power through
elections and thus is deemed anti-democratic by them. Otherwise, they oppose any minority
power, which is illegitimate. Neumann and Blankfort became prominent by the fact that they
were not afraid of being called “anti-Semites”, and, with their consequent argumentation, they
managed to change, to some extent, the ruling direction of wind, and could reach that the
terrified majority could not be silenced.
Also Edward Herman took part in the debate, who was the co-author, besides Noam
Chomsky, of the work titled Manufacturing Consent. He wrote: “There is a powerful pro-
Israel lobby in the United States, which advances Israeli interests by pushing for U.S. aid and
protection to Israel, and, currently, by pressing for a war against Iraq, which again will serve
Israeli interests. This lobby has not only helped control media debate and made congress into
’Israeli occupied territory’, it has seen to it that numerous officials with ‘dual loyalties’
occupy strategic decision-making positions in the Bush administration.”
Jeffrey Blankfort gained fame by winning, as a plaintiff, a settlement from the Anti-
Defamation League (ADL) in 2002. He forced Abraham H. Foxman, National Director of
the ADL, to pay a considerable amount of compensation for its vast illegal spying against
him, as well as hundreds of other progressive social, political, labor and environmental
organizations and thousands of individuals (including anti-Apartheid groups/activists). Jeffrey
Blankfort made another important step forward when he criticized and refuted the views of
Noam Chomsky, Joel Benjamin and Stephen Zunes. The listed persons are such radical
thinkers who, nevertheless, under-evaluated, to a certain extent, the extraordinary importance
of Jewish power. It was also Jeff Blankfort who recognized what was hiding behind the
fabulous success of the so-called Rapture Evangelicals.
Here we only recall that, according to the teachings of the dispensationalism
elaborated by John Nelson Darby, Christians should perceive history as two separate
periods. This division, dispensation of history expresses that God uses different means of
working with people. There are two divine plans. One is for earthly people, for Israel, and the
other one is for heavenly people, the Church. According to this theory, a chaotic period is
ahead humanity. Before this era full of suffering starts, the real church will have been
removed from history, namely through rapture, according to Darby. God will take his people
immediately to heaven. And the period of trials will culminate in the battle fought in the
valley of Armageddon, north-west of Jerusalem, in the end of which the remaining Jewry will
recognize Jesus as God – Messiah – and the people of Israel will become again God’s primary
chosen.
It was Blankfort who demonstrated that these TV-evangelists propagating the rapture
would not have been able to get the opportunity of exerting extraordinary influence if the
Black Entertainment Television (BET) had not become the property of Viacom, owned by
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Summer Redstone (formerly Murray Rothstein). Redstone terminated the news programme of
the BET and broadcasted Protestant Christian advertisement programmes for Israel instead.
Jeff Blankfort compiled a list of Jews in key role in the mass-media institutions of the opinion
power.
Why is Israel Shamir unsatisfied?
Nevertheless, Israel Shamir is not satisfied with the authors of the large-size work
titled When Victims Rule. First of all because the Author of this interesting book is regrettably
short of insight. While noting and criticizing 'Jewish pre-eminence', he does not offer an
answer to a series of paramount questions.
What does it mean? How it was achieved? Why it is achieved? Without an attempt to
answer, the book remains but a collection containing important data, a kind of super-database.
The Author was worried that he would be considered 'anti-Semitic', but Shamir’s main
objection was quite an opposite one, namely, The “Critique of Jewish Pre-eminence in
America” was too “Jewish” by its outlook, and not only because some pages appear as a
Jewish vanity publication, listing prominent and successful Jews. It is true, there are unusual
lists of Jews making a living from robbery and murder, but even this thing is not unusual,
according to Shamir, since even Isaac Babel happily described Jewish gangsters of Odessa,
while the stories of Jewish-American gangsters were published many times and are quite
popular with Jewish readers.
Shamir thinks that probably the word “tribal” is the key to the “Jewishness” of the
2,000-page work and to its relative failure. The view of Jews as a tribe is a very Jewish view,
promoted nowadays by Adin Steinzaltz, the chief Talmudic authority in Israel. He called the
Jews “family”, but this view does not furnish us with a good explanation of the Rise of the
Jews and of its consequences. If the Jews are “a tribe”, sort of extended family, what is the
secret of their magic attraction and strange successes? There are many “families”, from
Sicilian Mafia to Hong Kong Triads, but can they measure up to the Jewish influence, nay,
centrality in the Western world?
By adhering to this Jewish “clannish” view the Author overlooked the ideology behind
the Jews. Raphael Patai, a Jewish scholar, claims that, for all the knottiness surrounding the
modern day issue, being Jewish can best be described as nothing more than an intellectual-
psychical attitude, a kind of specific state of mind. Shamir ironically adds to this: This kind of
"Jewish state of mind", of course, won't afford you citizenship in today's state of Israel, nor
acceptance into any Jewish community anywhere. At the same time, Shamir contradicts
himself, since this counter-argument seems to be true, but in fact it is not. This state of mind is
almost perfectly shared by Conrad Black, a Gentile who became a Jewish media mogul
without undergoing circumcision.
According to Shamir, Black is an accepted and valued member of the Jewish
community and a potential citizen of Israel. Technically, by virtue of his marriage to his
Jewish wife, but much more so by his state of mind. Plenty of Gentile Americans share this
state of mind. On the other hand, a factory worker or a peasant born of Jewish parents
technically entitled to the place in the community and to the Israeli passport but lacks this
state of mind and would be out of place in the Jewish community. In Israel there are many
immigrants of Jewish origin who were thoroughly de-Jewified but decided to come to Israel.
They do not fit into the Jewish society and form its outcast fringe.
While rejecting insightful remark of Patai, the Author accepts some misleading Jewish
declarations for their face value. According to one of them, modern Jewry's deep animosity
towards Christianity stems from the accusation that institutional Christianity was seminal to
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anti-Semitism in the Middle Ages. It is the traditional Jewish point of view, which is deeply
un-historical and anachronistic, but the Author takes it over yet. In the same vein, another
opinion says that modern Jewry's deep animosity towards Palestinians stems from the
accusation that Palestinians were seminal to anti-Semitism.
Shamir states as a fact that, in both cases, Jewry was on the offensive, not the
defensive side. The Jews attacked Christians from the days of the Apostles, just as they
attacked Palestinians by depriving them of their livelihood from the very beginning of Zionist
immigration. The Author probably noticed his mistake and tried to correct it without
harmonizing with his preceding statement.
Namely, Judaism had, of course, antipathy for Christianity from the latter's very
inception. So, the reader has a choice of two contradicting statements: the Jewish animosity is
a reaction to Christian anti-Semitism, or it is a primary attitude of Jews. But the Author still
goes on, getting deeper into the bog of anachronistic contradictions: Christianity evolved out
of Judaism; it was founded and propagated by Jews dissatisfied with the direction of the
seminal faith as guided by its leaders. "Popular hatred of the Temple priests and the rich
became the basis of Christianity, and the New Testament must be seen as the last major
production of the Jewish religious genre", says Lenni Brenner.
This traditional Jewish point of view was earlier debunked by Professor Israel Joseph
Yuval of the Hebrew University. Yuval proved that while Christianity “evolved” from the
Biblical Judaism, the Rabbinic Judaism came to existence only after Christianity appeared as
a reactionary response to it. According to Shamir, the Author should know that Christianity
rose and won the day when there were no Temple priests neither “filthy rich” anymore, after
AD 70. No study or deconstruction of Jewishness is meaningful, unless one understands that
Jewry was born in order to fight Christ and Christianity. It found other uses: to make money
and share influence. Likewise, an army can be used for many purposes, to harvest potatoes or
extinguish fires, but it is created to fight wars.
The Author collected much evidence of Jewish hostility to Christianity, but he failed
to comprehend its key role in Jewish attitudes. He failed for he adopted basically Jewish
materialistic “export vision” of history, world and self. Shamir qualifies this view erroneous
and myopic. In the course of history, people gave up their bread and meat, wives and children,
died and killed for the sake of their faith, while persecution of the Jews was not due to
religious commandment. The relentless Jewish assault on Christendom can't be
comprehended without this framework.
The Jews promote the Tribe vision, as it sounds quite harmless and convincing. Why
indeed should one escape one's own tribe that one belongs to by virtue of birth? Again, if it is
just a tribe, it really makes no difference what sort of positions its members occupy. The Tribe
vision allows the Jews to claim for their own the Apostles and Karl Marx, and many
wonderful people of Jewish origin. This vision proclaims: once a Jew, always a Jew.
However, historical reality is different. Two thousand years ago there were millions of Jews,
while by 8th century they disappeared almost completely. Spain succeeded to undo its Jews.
If descendents of Jews were Jews, there would be hundreds of millions Jews nowadays –
argues Shamir, and refers to the fate of Jews settled down in China.
The non-tribal character of Jews is well illustrated by the fate of the Jews of China.
This community was successfully assimilated, and all efforts of Israeli and American Jews to
bring them back to “Jewish conscience” failed, for it makes no sense to be a Jew outside of
Christ's ecumene. The essence of ecumenism is that it strives at the cooperation of all
Christian churches in the world, by following the universal Christian values and the universal
ethic affecting the whole world.
Thus, Shamir ask again the question, which he had already thoroughly analyzed in
many works: Indeed, what is a Jew? Everyone has a small part of his personality that stops
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him from embracing (=being together with, or identical to) Christ. It is excessive care for
one's property, anti-collectivism, godlessness and fight against God. But if God is what Christ
represented, then dishonesty, elitism, some sorts of creativity, disregard for others are godless
behaviors. Shamir thinks that there is a small Jew inside us. The fiery catharsis of Christ's
incarnation, mission, passion and resurrection expelled this slag from the body of Church.
Taking into account that the Holy Trinity – the Father, the Son and the Holy Spirit –
does not mean a triple Divinity, but one single God, namely only one God exists, therefore if
somebody rebels against Jesus Christ and denies him, he actually rebels against the only God
and takes the side of the Prince of the World, of Satan.
That is why great theologians and mystics from St. John to Martin Luther, from
Muhammad to Friar Sergei Bulgakov contemplated on the Jews. For them, the Jews were a
visible proof of God's attention to Man, a living memory of Incarnation and a negative
example of what can go wrong. A Jew who understood it and acted correspondingly ceased to
be a Jew. A Gentile who accepted the Jewish mode of behaviour turned into a Jew. The “pre-
eminence of Jews in America” is another form of re-stating words of Marx: “America has
been Jewified and accepted the Jewish values.”
According to Shamir, the Author failed to understand this spiritual meaning of Jews
and Jewish influence. Being a Jew is not belonging to a tribe, but ideology, and that is the
essence of the problem. Pre-eminence of Jewish ideology and Jewish values in America is the
true problem of America and the world. The Author quotes words of a Jewish commentator,
Robert Kamenetz: “I began to suspect that Jewish identity, as it has evolved in the West
today, could be a real barrier to encountering the depths of Judaism. In other words, being
Jewish could keep you from being a Jew.”
However, according to Marx, Judaism is a sordid (worthless, ordinary and
materialistic) form of Christianity, while Christianity is sublime (majestic, lofty, refined)
Judaism. Immersion into the depths of Judaism leads to rejection of Jewish identity.
According to Shamir, such people should be supported and assisted to leave the Jewish fold.
The leaders of the organized Jewry are aware of the danger and that is why they fight the
church and derail its efforts to save the Jews from Judaic tendency. Shamir thinks that Judaic
spirit is a real danger to the Western, Russian and Islamic world. But he is on the opinion that
the biological approach proposed by the Author does not help. He quotes the opinion of one
of the modern ideologists of European Traditionalism, Horst Mahler (who started on far left
and ended on far right) concerning Jewish supremacy. Mahler stressed the spiritual element of
the struggle:
“Hitler failed for he attended to biological (racist, tribal) aspect of Jews, while it is
the spiritual aspect that had to be fought. Only in April 1945 he recognized that the Jews
represent certain Spirit that can't be defeated but by spirit. The belief that there is no God,
that Man is self-sufficient (Humanism), that the World is realizable without recourse to the
concept of the Absolute Spirit (God), is the triumph of Judaism over other peoples. On this
basis alone these peoples are delivered to Globalism and ordained to destruction.”
Israel Shamir thinks that without spiritual background, the Author offers no real
solution, because his tribe-based research in fact copied the Jewish strategy and interpreted
accordingly the analyzed problems.
Is the historical strategy of the Jews aggressive or defensive?
In the course of history, the Jewish strategy managed to present itself as a strategy of
defensive character, i.e. such a common effort of the Jewish communities, with which they
had to defend themselves against the world that had a hostile attitude towards them.
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Nevertheless, in Shamir’s opinion, the Jewish strategy is in fact an offensive allegiance. The
Author brings numerous examples of “Jewish extreme sensitivity” to what they consider
“anti-Semitism”. It includes such unlikely culprits as vegetarianism and lack of reference to
Jews in the case of a Jewish performance. Shamir, nevertheless, gives a different
psychological answer to all this:
“If a person is dead certain that he is hated, he probably knows of a very good reason
to be hated. Jews in Israel have no doubt the Palestinians hate them, for they would hate
Palestinians if the situation would be reversed. If you steal, rob and kill you are sure you
should be hated. If you install yourself as a Master Folk over subservient population, if you
eradicate their culture, demean their traditions, make fun of their faith and emasculate them,
you KNOW you should be hated. The Palestinians are not Jews and they do not hate the Jews,
but many Jews do not understand it, as they extrapolate their own feelings to their enemies.”
The anti-Semitism fighters within the Jewish community are the Jews actively
engaged in warfare against the host society. They consider themselves the Herrenvolk and the
Gentile Americans are their flock to be controlled and shepherded. In spite of all protestations
of Gentile innocence, the Jewish anti-Semitism-fighters know it well that the goyim have a
very good reason to hate them. Holocaust supplies an easy external explanation for their fears,
but in 1920s it was supplied by “Russian pogroms” and in the 19th century by “Inquisition”.
Still, these explanations are just a cover for the real reason: these people took over the public
debates, the social discourse, and they expect their successes to be met with hatred of the
subjugated people.
Search for anti-Semitism is an active offensive search for the remaining pockets of
resistance within American psyche. According to Shamir, it is akin to the search-and-destroy
operation carried out by soldiers in the conquered city. In their eyes, palpable absence of anti-
Semitism in the US is a clear proof of total surrender of the Americans to their new elite.
While discussing “anti-Semitism”, the Author could consider the search for anti-Semitism as
a sterling proof of the searchers' guilt. An innocent sane person has no reason to believe he is
hated, and there is no reason to commit them to psychiatric asylum.
Organized Jewry and the Jewish supremacy
Supremacy means superiority, supreme power and dominance. In Shamir’s opinion,
the enemy is the Jewish supremacy carried out by organized Jewry. Following Isaac
Deutscher and other thinkers, Shamir distinguishes between Jewry and Jews, i.e. people of
Jewish origin. Jewry is a structure, a state without territory, an offensive ideological
formation. Jews, people of Jewish origin could belong to Jewry or reject it completely and
become ordinary Americans, French or Palestinians, like thousands and thousands of their
predecessors, from the Apostles to St. Teresa of Avila to Karl Marx. It is a question of
personal choice. Nevertheless, the society cannot be indifferent to the result. Isaac Deutscher
put it neatly: “Let Jewry perish and Jews live.”
There is always a problem how to distinguish Jews – members of Jewry and ordinary
people of Jewish origin. In the past, religion provided sufficient indicator for a person's
relationship to society. The Jew was in the state of declared warfare with the society, as Marx
put it. If he would not like to be anti-social, he would accept Christ. Nowadays, it is not that
clear: Christianity in America isn't posited as the only alternative, nor a religion is considered
necessary. Fortunately, there are three criteria, which can lead us. The first is support for
Jewish supremacy in Palestine. The second is preference of Jews over non-Jews, and the
third is support of anti-Semitism fighters. These three parameters allow us to separate goats
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from lambs by non-ethnic criteria. Conrad Black, a friend of Sharon and of Foxman, neatly
falls into Jewry, while Shamir’s friend, Michael Neumann finds himself on the other side.
In Shamir’s opinion, the first goal is liberation of discourse, removal of means of mass
communication from the clutches of Jewish supremacists, democratization of access to media.
In the longer run, cutting the influence of Jewry in the mass-media to their natural size. Let
the religious Jews pray in their synagogues, but in case they take their synagogue with them to
a bank or to a newspaper office, the “affirmative action” anti-discrimination law should be
enforced. The Jews constitute two and a half per cent of the US population, and that is
exactly the maximum share they should have in the resources and administration. In the
Jewish state, non-Jews constitute 50 per cent of population, but occupy no important
positions at all. But Christian approach is not a mirror copy of the Jewish one.
Eventually, Jews will leave Jewry and join all-American population. The above listed
three criteria would allow us to see whether we deal with sincere conversion, or a trick. If a
person sends his money to Jews, instead of general population, if he calls to support Israel, if
he alleges Christian customs make him feel uncomfortable, he belongs to Jewry and should be
treated as such. If, on the other hand, he freely intermarries and communicates with the others,
if he cares for all and not for Jews only, if he values the spirit of America, he is just like the
other Americans.
Shamir thinks it is necessary to make people aware or the great unjust and
discriminative concentration of power and wealth in hands of a small group. But it is also
tactically reasonable to play this power down, like Mao Zedong did when he called the
nuclear might of the US, “a papier-maché tiger”. Canadian Professor Michael Neumann's call
for more civil courage was timely: unless you will speak up nobody will do it for you.
There are many contemporary people with Jewish names who prefer equality to
Jewish supremacy. They know it well: Jewish supremacy is not rule by Einstein or Freud, it
is rule by Mort Zuckerman, Ariel Sharon, Richard Pearle et al. Shamir is convinced that
the hegemony of the organized Jewry can be fought down by cooperating with the other Jews.
The name and internet address (www.jewishtribalreview.org) of Chad Powers refers
to a collection of internet links, which deal with Semitism and the role of the pro-Israel lobby,
but it cannot be excluded either that it is the name or pen-name of a natural person. No matter
who is this Powers, Shamir, replying to him, defended Michael Neumann, since, in his
opinion, the Professor of Trent University, Ontario defended the Jewish power because, in
fact, he wanted to call the attention to those tools and possibilities of action, which are still
available to non-Jews. Jeff Blankfort, the well-known San Francisco media personality,
proved, in a short, but well-funded article, the nearly all-comprehensive hegemony of the
Jewish lobby. And Chad Powers qualified Neumann’s article a usual Jewish dissimulation
(secretiveness, camouflage). The Canadian Professor, in fact, wanted to raise the spirits of
non-Jewish America by directing the attention onto everything it can still used as a source of
power. The capacity of action of the Americans should not be paralyzed by over-evaluating of
Jewish power.
According to Shamir, the borderline between Jews and non-Jews is not the question of
belonging or not to the Jewish ethnic, genetic community. Such goys like Konrad Black, or
Rupert Murdoch are as pro-Jewry as Mortimer Benjamin Zuckerman, media magnate and
housing billionaire. Shamir does not agree with the fact that Konrad Black would belong to
Jewry because of his Jewish wife. The media mogul is not a weak and influenced personality
that his identity could be determined by his wife. A lot of people have Jewish spouses.
Probably every family in the US elite has a member of Jewish origin. It is quite a normal way
of assimilating minorities. In such a way, other successful and powerful minorities were
integrated and dismantled in the course of human history. The leadership of the organized
Jewry hopes to perpetuate its control over these descendents of Jews. Shamir finishes his
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reply to Chad Powers saying: “That is the challenge for America: to dejewify Jews before
Jews will jewify them.”
Gaza – a gigantic concentration camp
The election of the Palestinian Parliament took place in January 2006. This election,
qualified as fair and democratic even by international observers, was won by the Hamas,
which was formed in 1987, in the time of the first Intifada, and since 1993 put up several
suicide bombings against the organized Israelis. In 2005, the Hamas stopped these attacks,
and renounced to them definitively in 2006. The Hamas put up also missile attacks with
home-made devices between 2001-2006. Following its victory in the elections, the conflict
between the Hamas and the Fatah sharpened. In 2007, a smaller civil war took place between
them, and the representatives of the Hamas were removed from the government functions of
the Palestinian National Authority operating on the West Bank. The Hamas continued to hold
the Gaza Strip under control.
Mahmoud Abbas, the president of the Palestinian National Authority, outlawed the
military wing of Hamas. After this, Israel took Gaza under economic blockade, and the
Hamas attacked border areas of Israel near Gaza with Qassam missiles. These attacks ceased
in June 2008, when a ceasefire was established with the mediation of Egypt. Nevertheless,
these attacks were continued sporadically by other Palestinian resistance groups outside the
Hamas. During the two months preceding the six-month ceasefire, the conflict sharpened,
after the 4th
November 2008 penetration into Gaza from the Israeli side, during which two
members of the Hamas militia were killed.
Following this, the Hamas continued the missile attacks. In late December 2008, Israel
started a large-size military operation against Gaza. A number of 13 Israelis, unfortunately,
lost their lives in the conflict, but the casualties caused by the Israeli army were ten times
more: 1,417 killed, and 4,800 wounded Palestinians. The Israeli army attacked with modern
weapons and destroyed to the ground four thousand buildings and seriously damaged twenty
thousand others. In the middle of January 2009, Israel withdrew its troops from Gaza, but
maintained the blockade of Gaza on ground, sea and in the air.
The Hamas does not strive at the annihilation of Israel, but at the establishment of an
independent Palestinian state with the capital in Jerusalem, and wants such an agreement,
which makes it possible the right of the expelled, fled Palestinians to return to their land. As a
result of the Israeli blockade, such situation emerged in Gaza, which remind of the Bantustans
established by the former South African apartheid state. The situation created in Gaza as a
consequence of the blockade was qualified as unsustainable by the Security Council of the
UNO, and it called for the termination of the blockade in many of its resolutions, among them
in nr. 1850 of 2008 and nr. 1860 of 2009. The Security Council expressed its deep concern
about the humanitarian crisis situation, and strongly urged the restoration of the free
movement of people and goods for Gaza. It expressly stressed the free operation of the
humanitarian aid in the closed enclave. At the same time, the Security Council made efforts
for the soonest starting of negotiations aiming at the termination of the crisis.
What happened on 31st May 2010?
On this day, at 65 km from Gaza, in international waters, a convoy consisting of six
relief ships, called Freedom Flotilla, was heading toward the port of Gaza. The Israeli Navy
contacted the captain of Mavi Marmara, the leading ship of the convoy, and asked him
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information about the target of the ship. After this, two Israeli warships flanked the convoy,
which transported ten thousand tons of humanitarian aid. The convoy slowed down and made
steps to avoid armed conflict. They communicated, with all available tools, that the
passengers of the ships are peaceful civil persons, and the ships transport medical devices and
medicines. In spite of this, the commandos of the Israeli Army assaulted the ships.
The organizers of the transport expressed that they want to continue their action and
want to deliver the shipment to the Palestinian Authority controlled by the Hamas. The Israeli
authorities stated that they do not allow the convoy to sail into Gaza harbor, and around 4
o’clock early in the morning Israeli soldiers arrived onto the ships by helicopters. According
to Israeli officials, on the ships knives and sticks were used against the Israeli soldiers, and
they even took away the gun from one of them. In the outburst fight, sixteen relief-bringing
peace activists lost their lives. The Israeli soldiers arrested the persons aboard the ships and
confiscated the shipment.
Israeli Prime Minister Netanyahu expressed his sorrow about the large number of
casualties, and pointed out that the Israeli soldiers were received with a violent resistance, and
one of them was stabbed in the stomach and another one attacked with baseball bars. Two
shotguns were found on the ships. Israeli general Ashkenazi accused a Turkish civil
organization, qualified “extremist”, with the violent acts. In the military action, also seven
Israeli soldiers were wounded, one of them seriously. The Turkish Foreign Minister called the
incident a murder committed by the state, which cannot be justified with anything. He
stressed that the freedom of sailing is one of the oldest main rules of the international law. No
ship must be held up or occupied without the consent of the ship’s captain or the approval of
the state the insignia of which the ship bears. It cannot be accepted as a legal measure, in any
form, when the humanitarian aid was qualified an adverse act and the relief-bringers armed
soldiers.
The attack on the relief ships made the already tense relationship between Israel and
Turkey even worse, and called the public attention of the world on the intolerable situation
caused by the Israeli blockade to Gaza and its inhabitants. The spokesman of the White House
also expressed his deep concern for the losses of human lives and the number of injured. The
Israeli Prime Minister cancelled his visit to the White House. The hard Israeli intervention
was condemned by Turkey, France, the UNO, while Greece suspended the execution of a
joint Greek–Israeli naval manoeuvre. Turkish Prime Minister Erdogan qualified the Israeli
attack state terrorism, and ten thousand people protested in Istanbul in front of the Israeli
Consulate.
Gilad Atzmon, Jewish-born public personality living in London, the former soldier of
the Israeli Army, called the massacre, in writing and words, a premeditated operation. Israel
wanted blood – he writes – because it believes that its “power of deterrence” expands with the
more dead it leaves behind. The Israeli decision to use hundreds of commando soldiers
against civilians was taken by the Israeli cabinet together with the Israeli top military
commanders. What we saw wasn’t just a failure on the ground. It was actually an institutional
failure of a morbid society that a long time ago lost touch with humanity.
It is no secret that Palestinians are living in a siege for years. But it is now down to the
nations to move on and mount the ultimate pressure on Israel and its citizens. Since the
massacre was committed by a popular army that followed instructions given by a
“democratically elected” government. From now on, every Israeli should be considered as a
suspicious war criminal unless proved different. Atzmon continues: “Considering the fact
that Israel stormed naval vessels sailing under Irish, Turkish and Greek flags. Both NATO
members and EU countries must immediately cease their relationships with Israel and close
their airspace to Israeli airplanes.”
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The Jewish State is careless about human life, and the Israeli press campaign led to the
slaughter. Atzmon thinks that Israel actually seeks pleasure in inflicting pain and devastation
on others.
Bernard Lazare (1865–1903), a Jewish public personality in the 19th
century, stressed
that it is necessary to break with the view concerning which the Jews are not responsible for
what is happening with them. Lazare thought that the anti-Semitism, no matter what form it
might take, in fact, can be considered a response to the Jewish exclusiveness and excluding
attitude. In their success, an important role was played by their moral separation, the
application of the double moral and double measure, as well as their ability to cluster into
well-organized groups excluding others and based upon authority, keeping alive the feeling of
continuous threatenedness. The present-day money rule world order is getting close to its
end. According to our hopes, its place will be taken by the harmonic world order, and one of
the preconditions of this is the definitive termination of the conflict between Jews and non-
Jews. The first step towards it is to keep the rules of the universal moral that cannot be
relativized, as well as to put an end, by everyone, to the practice of the double moral and
double measure.
We must return to the public money system
The entrepreneurs should get the money, not the banks!
(An interview with the author made by Tibor Farkas for the Hungarian web
newspaper “Ingatlannet”)
János Drábik, recently, wrote a book titled Válság és valóság (Crisis and Reality),
together with László Bogár and István Varga. The decision-makers have read all his books,
but they do not dare to face the problems set forth in them. The author considers himself a
“generalist”: he fits the pieces of mosaic together and interprets the whole image. He also
views the present of the world economy in this way. Some people qualify this a conspiracy
theory, others an outspokenness. In the Western world, it is natural to think “alternative”, but
in Hungary it is not. The independent intelligentsia is lacking, who lives from “capital income
and is not an employee. János Drábik asks: Why did the banks get the incredible bailout, and
why not the entrepreneurs? In the West, there is a whisper about taxation of the banks, but in
Hungary they mystify the risk of the source procurement.
– Well, at last, how much money was issued in the world due to the crisis?
– In the USA, the state put four and a half billion dollars at the disposal of the banking
system, from public money, so that the money system should stay operational and it could
finance the real economy, and millions of people should not be made redundant. Of course,
the American state could have given this money directly to the productive sector. In the EU, 3
thousand billion euros were issued for the same purpose.
– But who issued this horrible amount of money? Because the crisis itself is about the
fact that too much uncovered money was pumped into the world, and then the bubble burst.
– The rule in the EU is that the monetary prerogatives – namely the rights of money-
issuing, exchange rate regulation, interest rate regulation and crediting – have to be passed
over to the central banks, irrespective of whether they are private banks or are state-owned.
The Frankfurt-based European Central Bank issues the euro, and the member states cannot
have a say in the matter. Even the Lisbon Treaty stipulates that neither the European
Parliament, nor the Committee or the European Council can intervene in its operation, but, on
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the contrary, they are obliged to harmonize, to agree all measures of them that have financial
respects. The European central banks are submitted to international financial structures. In the
global money system, the banks withdrew themselves from under the state control. The banks
controlled, in a sovereign mode, their own activity. The global money system was
transformed into a casino operating a hazardous gambling, in which the speculators could
depredate without any restriction.
– Hold on for a moment! At this point, they say it is a conspiracy theory…
– Why is it a “conspiracy theory” if we analyze the process of the financial
speculations going on in the world? Let us see the so-called bubbles, which were blown up,
and then, when they burst out, the people suffered losses. In our days, we can hear again about
huge bankers’ salaries and bonuses. You should just read the foreign professional organs!
– Let us see the bubbles then!
– Well, the first bubble, the NASDAQ bubble, burst out in 2000. In the USA, for the
first time in the world-scale speculation, the technological enterprises were taken to the
electronic stock exchange market, where the prime stock issuers made a huge profit, they
quickly blew up the prices, and the NASDAQ index started a never experienced soaring.
However, even at that time, it was known when this speculation would collapse, therefore
they made insurance for the crash. Thus, when they went bankrupt, they made a huge profit
again.
– And then “our” bubble came.
– The second bubble was the 2008 second mortgage crisis. Credits were given to
everybody, even without a deposit. In normal conditions, the amount of the deposit is 20–25%
of the purchase price. First they lowered it to 5%, and then they did not even ask a deposit,
but a monthly payment only. They assembled these mortgage credits into packets and they put
them on the money market in this way. It was totally doubtful whether there would be any
money out of it. They sold these junk bonds to insurance companies and pension funds as
coverage of good, AAA rated investments, while they knew it well that they could not be
turned into money in case of need. The good money, earned with work, of many million
pensioners and assured persons was lost in this way, the money which they saved for their old
age and illness.
– In the case of these speculation processes, maybe it is worth talking also about the
credit risk rating, which determines with how much premium the money comes to the given
countries. In Hungary, everything is explained always with this high-risk premium.
– The bubble barons also speculated with the credit risk transactions. Here the story is
about the CDS (credit default swap) transactions. In the current credit money system, it can be
weighed, in the case of every borrower, whether he would or not repay the credit. The
estimation of the credit standing made it possible for the credit default swaps to get
independent. These credit risk transactions became commercial goods in mass, on the money
markets. The CDS transactions can also apply to states, if the state is the debtor, if the state
took up the credits. Bets can be made also on the possible bankruptcy of the indebted state. It
is possible to weigh the credit risk of the economic actors, of the borrowers. The so-called
credit rating companies are specialized for this. The credit risk is the good itself, and they
traded with the expectable market price of it. In the course of the CDS transactions, the big
investors frequently traded with a credit swap with a rate of one to one hundred. This made
such speculations possible, which move huge sums. Within six years, the money bubble was
blown up so much, that it reached the amount of 700 trillion dollars (1 trillion = 1000
billions). And this burst out in September 20008. However, for some people, this proved to be
a business bringing a huge profit. When the money system collapsed, the speculators who
caused the crisis asked the state to save the banking system, because, if the normal interbank
crediting was not restored, they would not be able to finance the real economy, which means
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that productive enterprises would be stopped and would go bankrupt in mass, and many
million people would become redundant. And then, the governments put their hands into the
taxpayer’s pockets and unscrupulously loaded onto them the bailout of the hazardous banks
from public money. They could have given this public money directly to the productive
enterprises, but they did not do this. We still cannot know why they preferred the hazardous
banks against the value-producing real economy.
– What is the situation now in Hungary?
– They said that the 25 billion dollar stand-up loan is necessary so that the Hungarian
economy should stay operational. Although the Hungarian crisis was also the result of a
planned financial strategy. For 21 years, the Hungarian National Bank (MNB) has always
been paying a higher real interest than any other member state of the EU, including also the
neighbouring countries. You just have to have a look at the figures! The interest rate has
always been high in Hungary. During the crisis, the European states and America tried to help
the productive sphere by lowering the interest rate from the average 6% to 2-3% or even
lower. On the other hand, the MNB, using the artificial weakening of the Hungarian forint as
a pretext at the beginning of the crisis, raised the basic interest rate from 6% to 11.5%. Due to
the high interests, unprecedented in Europe, many billions of euro hot capital arrived to
siphon the interest surplus. However, the 17.5 billion euros deposited on the currency account
of the MNB were not enough for the speculators to continuously exchange their interest yield
into currency and take it out from the country. For the undisturbed repatriation of the interest
income, it was necessary to take up the stand-by credit from the IMF. This huge sum went out
through the domestic subsidiaries of the foreign-owned mother banks. But the interest rate
was only 1-2% at the mother banks, so the surplus was sent back to Hungary, where their
subsidiaries placed this money at the MNB as deposits. The interests of the so parked 6-8
billion forints, of course, were paid from the national budget. The so paid interest surplus
consumed all the money that was withdrawn from the financing of the education, health and
social security.
– But, at the moment, the Hungarian basic interest rate is right 5.5%.
– But the Hungarian interest rates are still three times higher than the amount paid by
an entrepreneur in Prague, and 5-6 times higher than the interest paid by a British citizen. This
means that the 5.5% interest rate is too high to let the Hungarian entrepreneur be competitive.
– Why do not the Hungarian banks supply credits?
– Here it can be felt how big a problem is, in Hungary, that there are not any medium-
size banks in Hungarian property. The banks in foreign property now concentrate to fill up
their capital, because a huge amount of money disappeared during the crisis. The central
banks can issue uncovered money unlimitedly, which will become covered money when it is
lent to the state, the entrepreneurs and individuals. They will already pay the interest after it
from money covered with work. In my opinion, the banks are now waiting until the elections,
the start of the new government period.
– Why cannot the Hungarian National Bank be controlled? It seems that this field has
also become the battlefield of the political parties. They mention independence, but it is like
they themselves would not know what they are talking about, and it is also possible that they
are only misleading the public.
– The act about the MNB was made with a so-called 50% law in the Hungarian
Parliament. In Hungary, in 2009, in the very middle of the economic crisis, the profit of the
Hungarian banking system was double of that of the profit realized in the western countries.
Why the state, as the owner, is not allowed to intervene in the control of the money system, if
the banking system expected the help from it, already in the time of the crisis. It came to light
that in China, where the central bank is controlled by the state, even in the hardest period they
were able to keep the equilibrium: there was no inflation, the economy grew with 10%. They
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proved to be able to handle the raising problems. The independence of the MNB from its
owner should be withdrawn, since the members of the Monetary Council are only appointed
bureaucrats who do not owe political responsibility to the electors.
– This sounds a bit tough.
– The state should take back the monetary royalties! But it is said to this that it is not
possible to do this in the EU any more, because even the Lisbon Treaty forbids it. However, it
is a fact that, for instance, the commissioner for competition in Brussels issued, at the
beginning of the crisis, a series of exemptions, one after the other, to certain countries, to
issue money to help the banks – and the mentioned 3,000 billion euro state aid, bailout, was
created. So, there already were several exceptions from the ban. And if the Hungarian
government would like to take back the monetary royalties, why it cannot get exemption from
the ban of issuing money? The double measure should be terminated also here. And yet, the
state should issue the money, with which it would be possible to start infrastructure-
developing investments: dams on the river Tisza, inland water draining systems, sewage
draining systems, establishment of green areas, home building for youths, and public road
building. The Austrian companies are building the motorways from credits, and then they
cash for decades, and we are paying the interests for decades. The method of the infrastructure
development and production enlargement from work-based money was tried several times
during history in Japan, Germany, the USA, France and China, and always with total success.
– But why are we doing this, and why right now?
– Because the state debt and the debt service strangulated the country. Here is the
simple example! From the 10 billion dollars loan taken up between 1970–1989 in fact only 1
billion came into the country, as it can be read in the so-called Workshop Studies of the MNB.
Until 1989, we have paid for the 1 billion dollar intake an amount of 11 billion dollars
interest. The debt of Hungary increased to 270 billion dollars to the present day. From this we
have already paid 107 billion dollars interest. The country has already repaid the taken-up
loans 27 times, and, if we follow the practice to date, we should repay them 120 times, which
is impossible. This would mean the annihilation of the Hungarian national economy and of
the Hungarian nation. It is not possible to bear the burden of debt service for one thousand
years, to reimburse and to pay the interests forever. Whose interest is this absurdity?
About the Bilderberg Group, through the world crises to the
wars
(An interview with the author made by Veronika Takács for the 17th
June 2010
issue of the Hungarian weekly magazine “Barikád”)
We asked Dr. János Drábik, the retired leading programme editor of Radio Free
Europe, about the role of the background power.
– The mightiest lords of the world reunited for a secret meeting for the first time in
1954, in “Hotel Bilderberg”, the Netherlands. What is hiding behind this group?
– The Bilderberg Group is one of the representatives of the global financial elite
controlling the world. The money rule world order operates a large network. The three most
important entities of it are the Council on Foreign Relations, the Bilderberg Group, as the
second fiddler, and, finally, the Trilateral Commission. It is a fact that, in 56 years, the
Bilderberg Group gained a high reputation. More exactly because the spilled-out information
and facts later always proved to be true. It can be known what this society, otherwise keeping
secret strongly, had convened about, from the decisions made ultimately on the forums that
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control the financial, economic and political life in the world. What the Bilderberg Group
debates behind closed doors, turns into government decisions, as well as decisions of
international organizations, of the NATO, EU, UNO, etc.
– What can we know about the meeting held this year between June 3–6 in Sitges, and
its precedents?
– This year, the meeting was held in Spain, more exactly in Catalonia, in Sitges, the
exclusive resort 30 kilometers from Barcelona. Even in this case, the event was covered in
increased secrecy. One of the main rules of the money rule world order is that the background
power does not exist, and who speaks about it, makes conspiracy theories. The organizers and
participants of the Bilderberg meetings do not admit that they not only debate important
issues thoroughly, but they also make decisions which then are executed by the World Bank,
the International Monetary Fund, the governments and the international organizations. It is
important to know that, prior to the Sitges meeting, the meeting of the Trilateral Commission
was held in Dublin. This important institution of the money empire, operating as the main
power over the states, has already discussed such issues as the handling of the financial crisis,
the creation of a new global financial order, and the introduction of the new world currency.
They discussed that the controller of the new financial system and the current central bank of
the central banks should be the Basel-based Bank of International Settlements or the
International Monetary Fund. The role of world currency of the dollar was undermined by the
fact that the United State does not detain that economic capacity any longer, which would
make it possible to counterweight its huge debt with industrial production. Such a money,
which does not have any coverage cannot fulfil the role of the world money any longer. The
fact that its fate is already stamped can be seen even from the continuous and unstoppable
weakening of the dollar, and the euro has been shocked together with it, because the euro also
has a dollar base, since it emerged from the Eurodollar.
– What consequences would have the ousting of the dollar?
– If the dollar were ousted, the euro would also fall with it. The role of world money
of the gold would probably continue to increase, and a world currency covered with a
precious metal would be introduced sooner or later. All this cannot be performed quickly,
because China would lose its 2,500 billion dollar currency deposit. If the dollar were inflated
too quickly and were ousted from the international trade, China would have a huge loss, and
this might cause even a bigger war conflict. All this was discussed in Dublin, at the meeting
of the Trilateral Commission, where the main topic on the agenda was the creation of the new
world order and the new global financial world system connected to it. The financial collapse
and the consequent economic world crisis could not manage to convince the peoples of the
world that the way out from the chaos and anarchy would be the creation, the soonest
possible, of the world system controlled from a single centre, the global union. Therefore, the
triggering of the crisis did not attain this goal.
– Which were the planned goals?
– They wanted that the crisis should be so severe that it would force the world to
accept the new world order, which is the main world strategy goal of the different structures
of the history-forming world forces for 250 years. The essence of this strategy is the creation
of such a world order controlled from a single centre, of a kind of world state, in which the
international money cartel holds the money system under control, and the super-rich money
dynasties exert even the political power with the help of this strategy. Their goal is to create
such a bipolar world society, in which the small group of interest of the money wealth owners
would exert the power, would control the economy, and all other people would be employees
depending from them, living on salaries and wages, or people living on social aids, being in
an even more helpless and surrendered situation.
– Will they reach their goal?
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– With the economic world crisis, they were not able to create such chaotic
circumstances, from which, as a natural demand – the desire for order – a world system
controlled from a single centre could be introduced. It cannot be excluded that they will return
to the method, already tried and proved to be successful in history, that of fomenting a war of
bigger size. For the Euro-Atlantic power elite, the war, on one hand, will make it possible to
get out of the debt trap, and, on the other hand, it might speed up the achievement of the
global integration, desired by the world elite for a long time. Part of this world strategy, for
example, are the threatening with environmental catastrophes occurring as a consequence of
global warming or the change of climate, as well as the start of the speculation on global size
connected with the carbon dioxide quotas. The financial and economic crisis has not brought
the expected result to date. This is why the breakout of a new war was raised, as a new tool of
solution, for speeding up the changes. Iran seems to be suitable for the reaching of this goal.
The armies have already moved up around the Persian state: huge military bases were built in
Afghanistan, battalions have been stationing in Iraq for years, on sea, the US naval forces
were drawn together, two aircraft carriers are also stationing in the Persian Gulf, but, besides
the American ones, also the nuclear submarines of the Israeli Navy are there. The preparation
for war has arrived into such a stage that, technically, the war can be started in any moment.
– What did they talk about on the Dublin meeting that preceded the Sitges conference?
– It is for the first time in world history that the population and the public opinion
know about the plans of the transnational world powers, and this hinders the achievement of
their plans. Earlier it was not like this. In our days, the world public opinion already keeps
account of those persons belonging to the inner nucleus of the Bilderberg Group who are
always present at the meetings: the Queens of Belgium and England, Henry Kissinger, David
Rockefeller, the representatives of the Rothschild dynasty and others. It is also known who
the invited participants are. From Hungary, Lajos Bokros was present once as a full member.
György Surányi (the former chairman of the Hungarian National Bank, the chairman of the
CIB Bank) and János Martonyi were there several times. Nevertheless, Foreign Minister
Martonyi was involved into the confidential discussions only once. In 2010, it is an
extraordinary world situation from several points of view. The waking to consciousness of the
whole mankind speeded up, and, on the other hand, the conflicts of interest sharpened in the
highest layer of the world elite. Serious conflicts occurred about the evaluation of the world
crisis, in the question of the transformation of the money system and the development, as well
as in the respect of a possible war against Iran. In Sitges, they also dealt with the question
how should the public opinion of the world be won for the new world order, convincing them
that this is the only way out of the chaos. In this way it is possible to avoid the even bigger
economic and financial chaos, the emerging of civil war situations. At the same time with the
Bilderberg conference, the meeting of the ministers of finance and chairmen of banks of issue
of the G-20 was held in South Korea. In contrary with the meeting of the Bilderberg Group,
where the strict secrecy is compulsory, from the G-20 conference some decisions were
already made public. These, at the same time, allow us to make deductions concerning what
was adopted in Sitges and what was not. The G-20 decided to stop all bank-aiding and
economy-vitalizing packets, and to forbid the governments to supply great amounts of state
aids for the sake of assuring the financial liquidity and the operation of the productive
economy. The individual states must regroup all financial resources for the maintenance of
their liquidity.
– Who are responsible for the indebtedness of the states?
– The financial elite and the banking system owned by it are responsible for this. The
member states of the European Union got indebted because the speculators, who transformed
the financial system of the world into a global gambling casino, paralyzed, with their
unscrupulous hazarding, the normal operation of the financial processes, and threw the whole
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of the European Union into an economic crisis, and the speculators, hazarding without being
controlled, made their financial systems to collapse. They caused an economic world crisis,
and forced America to repair the situation, at the expense of taxpayers, with bank-aiding and
economy-vitalizing packets, from the money of the taxpayers. In America 4,500 billion
dollars, while in the European countries – including Germany, France, Italy, Denmark and
other countries – some 4,100 billion euros were pressed out to save the unscrupulously
hazarding financial institutions and banks. The same financial groups which caused the crisis,
now are complaining hypocritically that they lost confidence in these countries, because they
got so indebted. Why don’t they look for the fault in themselves? In Greece, Italy and in other
countries the measure of indebtedness was high even before, but the speculator creditors were
not panicking however. They needed the artificial creation of panic to press out newer billions
for themselves. They lost confidence suddenly, because so the rating companies score down
the debtors, which became “extremely risky”. And if they score them down, the interest rate
becomes higher due to the higher risk. And who are those who pocket the higher interests?
The investing, crediting financial institutions, and the banks owned by the money and
corporation oligarchy. However, there is another explanation why the hypocrite panic creation
was necessary. The artificial panic, from which they are pocketing extra billions now, was
also good to force the further financial centralization onto the member states of the Union,
first of all the members of the Eurozone. Making reference to the fact that the existence of the
euro and of the whole Eurozone is in danger, besides the already obtained monetary royalties,
they want to draw within their own authority even the fiscal attributions. They already do not
want to centralize only the monetary royalties – money issuing, interest regulation, exchange
rate regulation, credit system –, but also the levying of taxes, and the controlling of the
member state budgets. Accordingly, the would like to establish a European tax system, and so
that the member states should not have independent budgets, but even that should be
prepared, or approved previously by supranational Brussels bureaucracy.
– In such circumstances, how much chance do the nation states have?
– The European Union is the own institution of the money rule world elite. I cannot
emphasize enough that the European Union is a useless institution. The nations of Europe do
not need a bureaucratized, costly imperial structure. The advantages of the union – the free
movement of production, goods, information and ideas, as well as the loosening of the borders
– could be effectively achieved, reached without an imperial water-head, through bilateral or
multilateral cooperation between the nation states. The EU is not needed by the peoples of
Europe, but the world rule elite. The transnational money cartel, exerting the power above the
states, wants to get rid, by all means, of the nation states, because they, due to their need for
sovereignty, could step out of the money rule world order anytime.
In itself, the money is a valueless “sign”, made by the international money elite
practically free, from air. This sign, this uncovered money, will have coverage when it can be
lent to somebody as a credit. The borrower starts paying interest as a debtor. The best debtors
are the states themselves, because the sovereign debtors, theoretically, cannot go bankrupt. By
this, the uncovered sign is transformed into covered money. But this sign could be issued even
by the given states. This national mediation medium of own issue would be a better money
than the sign borrowed for interest ransom from abroad, because, in the given country, the
coverage of the own money would be the value-creating work. China, for example, operates
like this. Therefore, the goal of the transnational money cartel is to get rid of the nation states
as soon as possible. The cheapest way of doing this is to drive them into a supranational
imperial structure. So, no armies or wars are not needed for their annihilation, it is only
necessary to wash the brains of the people with the mass-media devices of the opinion
industry held in their hands. The brain and the thinking are owned by that who works it with
deceit and false information.
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– What does this mean for Hungary?
– Hungary is dictated what to do by the international money and corporation oligarchy
and its power network, because it does not have such a strong society, such a nationally
committed government detaining financial and economic power, which could resist the
money rule world elite with due definiteness. For the moment, it happens what they want.
Since 1989, they could continuously reach that Hungarian money covered with Hungarian
work should not be issued in Hungary. Since 1991, this system was even legally consolidated
with the adoption of the Act on the Hungarian National Bank and the introduction of the two-
level banking system. Only that thing can operate, for which the money world operating as an
organized private power is willing to give credit from its “air money”, while for which it is
not willing to give, it cannot operate. The new, nationally committed government of Hungary
has already made attempts to bring some essential measures. However, for these measures, it
would have been necessary that the deficit of the Hungarian budget should have been 3.8% of
the GDP, instead of 6.8%. The world elite and its conference of ministers of finance said “no”
to this. The investing bankers did not care about the fact that Hungary has a democratically
elected government with a strong legitimation, which is responsible to the Hungarian society.
If it is about the security of the money that can be expropriated by them, these bankers do not
play for keeps. And the democratic Hungarian leadership bowed the head obediently. This
also shows who controls the country.
The indebting is such a money-syphoning technique, the goal of which is not that the
debtor should pay his debt. If, by a miracle, all debtors repaid their debts at once, not even a
penny would remain in circulation. And if there is no money, the economy cannot operate,
because this is the “sign”, which mediates the economic life. But the production of this sign
does not need an international privileged layer and their money made of air, which they are
willing to lend only very expensively. Hungary and the Hungarian economy could be
operated also by means of payment issued in Hungary, which fact can be proved by many
things. China operates successfully in this way, for already three decades. China is pressed by
the Euro-Atlantic elite in a different way. We could also achieve to start such work
programmes, for which we detain the work, the labour force, the working means and the
technology in our country. In this way, it would be possible to build the dams, the water
reservoirs, the inland water draining and sewage systems, but even the public road network
could be further developed. It could be completed with a national programme for forest
planting, park building and home building. The means of payment could be issued by the
Hungarian state. As a consequence, tens of thousands of aided unemployed could become
employed taxpaying citizens in a short time. The state would have more money for the
financing of the public duties, and would have to employ less credits. This is only hindered by
the fact that it hurts the interests of the international money cartel.
– Were there such nation states, which resisted?
– Argentina resisted in 2000. What happened? They tried to beat down the country
with all possible means, but they did not succeed. They immediately reduced 65 billions from
the altogether 103 billion dollars debt, and the Argentinians better paid off the vultures of the
International Monetary Fund, in order to get rid of it as soon as possible. Argentina is OK,
thanks, and its development speeded up.
– Are there any chances that the countries detaining a strong national conscience
would keep together?
– Russia could not totally withdraw itself from the money rule system, but it is still
such an independent state, representing its national interests, which cooperates closely with
China, India and other countries within the framework of the Shanghai Cooperation. The
financial world crisis hit Russia only periferically. However, the made a bogey-man of the
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Russian Bear, although it would be worth cooperating closely with it, like with China and
other Asian countries, beside others with the states of the Arabic World.
– Is this money rule system heading towards the destruction of the Earth?
– If a nuclear world war burst out, it would cause the total destruction of a part of our
Earth, which would not be suitable for human existence any longer. The whole living world
would be endangered.
– And even this is not a withholding force?
– No, because, so that the power elites of the world should live well, one or two
billions of people would be enough, and there is no need for a seven billion mankind. Bill
Gates, the American businessman, already supports openly those schemes the goal of which is
to decrease the number of people on Earth considerably.
What kind of values does György Surányi represent?
György Surányi, who was the chairman of the Hungarian issue bank, the Hungarian
National Bank (MNB) between 1990 and 1991 and then between 1995 and 2001, began his
second period exactly on the day when Lajos Bokros became Minister of Finance, who was
ill-named due to his budget austerity programme called “the Bokros package”. For Surányi,
who controlled the monetary policy, the restrictions imposed by Bokros meant a problem
because, at that time, the main means of decreasing the incomes was the inflation. Thus, at the
beginning of the second period of Surányi’s reigning at the issue bank, in 1995, the rate of
inflation surpassed 30%. At the same time, the interest rates of the MNB and of the
commercial banks rocketed.
The drastic restrictions – which, according to the duly documented data of László
Gazdag, teacher of the University of Pécs, threw back the Hungarian economy unnecessarily
– decreased the external deficit, and the inflation also started to decrease gradually from its
June 1995 peak. By 1999, it was reduced to 10%, and this brought an international reputation
for György Surányi. In the meantime, the Hungarian capital markets were opened for the
foreign buyers, which means that the forint has become partially convertible.
However, after 1995, it has also become clear that the created monetary policy
background was untenable. The very high domestic interests and the improving economic
indexes attracted a considerable foreign capital inflow. This pressed the forint continuously to
the stronger side of the thin 4.5% flotation band. The danger still persisted namely that, if
the external and internal conditions worsen, and the capital speculating on the short-term
interest advantage leaves the country, the forint can weaken to the other side of the flotation
band. At this moment, the central bank must buy forints to defend the domestic means of
payment, and this must be done until the country has foreign currency deposit. At this time,
Surányi represented, repeatedly, the standpoint that Hungary does not need the so-called hot
capital, aiming at speculative yield.
However, due to the interest surcharge, the speculative capital continued to flow into
the country. As compared to the foreign partners, the Hungarian inflation rate was still very
high, and so the forint was upgraded, in real value, more and more, year by year, but the
strong side of the flotation band did not let it to be marked-up in nominal value. Even the
decrease of the inflation stopped. Since, in the first part of 2000, the interests had to be
decreased considerably, the monetary policy practically lost its scope of action.
Now Surányi suggested to the government led by Viktor Orbán to introduce a more
flexible exchange rate, which, at that time, was rejected by the government. Only during the
service of the next chairman of the issue bank, Zsigmond Járai, the widening of the flotation
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band, and the creation of the full convertibility of the forint took place. The relationship
between Surányi and the Fidesz was not free from tension even before the 1998 elections.
Namely, just before the elections, such an analysis made by the MNB was made public, which
criticized the economic programme of the Fidesz. The politicians of the Fidesz supposed that
this material got, with the knowledge of Surányi, to the socialists, who used it then, in their
election campaign.
In spite of the political controversies, Surányi spent the full time of his mandate at the
head of the MNB. He also criticized the monetary policy of his successor. He considered
those measures taken by Zsigmond Járai to be mistaken, which forced the accelerated
fulfilment of the conditions for the entrance into the Eurozone. However, he criticized not
only the depressing of the inflation, but also the government policy that broke the equilibrium
of the economy.
Nevertheless, Surányi could win for himself the recognition and appreciation of the
transnational money cartel that controls the international money system. He was the governor
representing Hungary in the International Monetary Fund. After 2005, he was member of the
board of directors of the Brussels European and Global Economic Laboratory. From such an
institution of the international money world as the World Economic Forum in Davos, he won
the title of “The global leader of tomorrow” in 1993. In 2000, he was awarded the prize of
“The best Central-European issue bank chairman” by the Euromoney magazine, and he was
given the highest “A” grade at the qualification of the efficiency of issue bank chairmen by
the Global Finance magazine.
The fact that György Surányi has become the favourite of the international money
world and of the leaders of the financial structures controlling it, is mostly proved by the fact
that he could take part three times in the secret conferences of such an outstanding institution
as the Bilderberg Group. He could attend three conferences of this globalist world rule group
that discusses the main strategic questions of the world: in 1996 in Toronto, in 1997 in Lake
Lanier, USA, and in 1999 in Sintra, Portugal.
This Hungarian favourite of the money rule world elite had an intimate relationship
also with Ferenc Gyurcsány. In 2006, Gyurcsány asked him, together with Erik Bogsch and
András Simor, to be a member of the Convergence Council, which gives opinion on the
programme of euro-convergence. When, in March 2009, Ferenc Gyurcsány announced that he
would give over his place to such a prime minister who would be able to assure a
parliamentary majority for his economic corrective programme, even the name of György
Surányi was raised. At that time, György Surányi set it as a precondition that all parliamentary
parties should support him to a certain extent. However, the Fidesz set forth definitely for the
pre-term elections, and Surányi stepped back.
We have set all this forth because György Surányi criticized the MNB led by András
Simor on 30th
January, 2010, in his long article pretending impartiality. He accused the wrong
policy of the central bank for the serious consequences in Hungary of the financial and
economic world crisis. Surányi’s article is made interesting also by how Viktor Orbán – who,
according to our current knowledge, is the most probable candidate for the function of prime
minister – reacted to it. Orbán recommended into the interest of his followers this article of
Surányi on his Facebook page.
The Fidesz has been criticizing András Simor for a long time, and – let us add to it,
very correctly – he urges the considerable decrease of the basic interest rate. Nevertheless,
Simor was criticized for his off-shore firms and for his earlier relationships maintained with
Gordon Bajnai and Péter Oszkó. Many people interpreted this that the Fidesz made an attempt
to change András Simor. For the moment, the Hungarian National Bank is an institution
which is independent from the government, and its chairman can leave his office prior to the
end of his mandate only on his own will. Nevertheless, it is important to mention that the Act
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on the National Bank is a so-called fifty-percent law, that is this regulation can be changed
with a newer law adopted with simple majority. And if the Fidesz – which has a chance even
to obtain a two-third majority – forms the government, then it will be even more able to do
this. And also other tools of pressure exercising are at hand, because, at their time, even the
Horn government managed to force Péter Ákos Bod, the former chairman of the MNB to
resign.
The real hardship is that the new government must count with the disapproval of the
international investors and credit rating specialists who would not be too happy about the
weakening of the independence of the monetary policy in Hungary. The international money
cartel that controls the money rule world order above the states regards the control of the
monetary policy of individual states its own exclusive territory. The money cartel, that is the
investing financiers and speculators, as well as the international financial structures under
their control detain such means by which they can support duly their dislike. Such are, for
instance, the drying out of the credit resources, the upgrading of the credit risk rate, the
embargo of government securities, the large-scale capital withdrawal. Nevertheless, a
government that is steadily and consequently committed to the national interests can avoid
and defend this by making use of protectionist means – applied also by other states –, for
instance it could temporarily suspend the possibility of the unlimited withdraw of capital. If it
is possible to misuse the free movement of capital, the beneficiary of which is the finance
oligarchy, then it is due and equitable to limit this misusing of freedom with protectionist
means.
The international money cartel, euphemistically called “market”, is satisfied, as a
whole, with the activity of the current issue bank chairman, András Simor. However,
concerning the economic policy plans of Fidesz, which is preparing for the change of
government, there are a lot of uncertainties. According to one of the campaign blogs of the
research and counselling enterprise Political Capital – which calls itself a political institute
independent from all political organizations, but, in fact, was in the service of the MDF
(Hungarian Democratic Forum) and the MSZP (Hungarian Socialist Party) – the elimination
of András Simor was only a hypothesis, but, if we think it further, even György Surányi could
be taken into account. Namely because the Fidesz could only make the resignation of the
issue bank chairman defensible, if it could place an internationally recognized specialist, but
independent from the party.
This institute, committed to the parliamentary democracy and market democracy – and
which, however, serves primarily the socialist and liberal political forces, in exchange of an
appropriate financial remuneration – considers György Surányi a specialist linked specifically
to the left.
(Here we have to mention that, in our days, the empty notions of “left” and “right”
have no scientifically supportable basis. The right division line is between the policy that
serves the global interests of the money world and the policy that enforces the national
interests of the given country. In this respect, the MSZP (Hungarian Socialist Party) and its
former coalition partner, the SZDSZ (Federation of Free Democrats) represented the
internationalism of globalism against the national interests of the Hungarian society. Since the
term “market economy” is, in fact, the euphemistic denomination of the international money
world and of the bankers and speculators playing a determining role in it, the cover name of
money rule power economy, therefore we consider that the Political Capital is committed to
the globalist internationalism, the order of values of which is irreconcilably opposed to the
interests of the Hungarian nation.)
So, Surányi served the interests of the globalist internationalism at the head of the
MNB, where he was appointed by the Horn government. He played a determining role in the
execution of the “Bokros package”, and, what is more, even Ferenc Gyurcsány qualified him
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as a person being close to the MSZP, in his ill-famed “speech of Őszöd”. Ferenc Gyurcsány is
such a public personality in Hungary who shifted smoothly from the representation of the
communist internationalism to the extremely antinational representation of the money rule,
globalist internationalism. It is important to emphasize this, because both the communist and
the globalist internationalism are interested in the weakening the annihilation of the
Hungarian nation, therefore their activity is incompatible with the basic necessities, interests
and values of the Hungarian nation, briefly in the demand that Hungary should remain a
Hungarian country.
If Ferenc Gyurcsány, who can be considered to be, in the same person, the typical
representative of both the communist and the globalist internationalism, regards György
Surányi a personality close to the MSZP, then it is very difficult to consider him a public
personality who sincerely undertakes the survival of the Hungarian nation. As, in the current
money rule world order, the greatest power is the monetary power, all the other means of
power that still remain to the National Assembly and the government are secondary ones
compared to this. Thus, in fact, the person who is at the head of the central bank can be
considered the head of the number one – the more important – government of the country.
The government – legitimated through democratic elections –, which activates in the visible
sphere of the political life, represents only the second level, with authorities that are
surrendered, as compared to the MNB. This is easy to see through, since any programme can
only be executed if its financing is solved. All such election promises, the financing of which
is not solved, are sentenced to failure. And the financing depends on the exertion of the
monetary royalties, i.e. on who has the right to regulate the money system of a given country,
the amount of money in circulation, the credit system, the rate of interest and of exchange. In
our day, also the application of local moneys and means of exchange are included here.
Until the government of second range does not take the main power licences back
from the first-range government, the MNB, the resident of the international money world in
Hungary, it will not be able to create either new workplaces or to organize and perform
infrastructural and production programmes which promote the country. Even if it wants to, it
will not be able to put into circulation the mediation agent – the Hungarian money covered
with Hungarian work – necessary for this. Due to its depending status, it will have an
extremely small scope for action. This existence is a torture. In essence, the debate was about
this in the evening of 17th
February, 2010, in the programme titled “A Tét” (The Stake) of the
Hungarian ATV television.
In this programme, Kornélia Magyar, the political scientist of the Progressive
Institute (Progresszív Intézet) commented on the idea of Prime Minister Gordon Bajnai,
which was set forth in the interview given to the magazine Mozgó Világ (Moving World), and
according to which the interests of Hungary would be served the best by a big coalition.
Kornélia Magyar remarked upon this, when stated that this big coalition, in fact, already exists
behind the curtains, because the oligarchs of the two big parties actually cooperate with each
other. Nevertheless, she quickly took back what she said, with reference to the fact that all
that was not more than a rumour moving on the level of a so-called “urban legend”, and she
was not thinking it seriously.
László Lengyel, the chairman and general director of the Pénzügykutató Zrt. (Institute
of Financial Research), who is frequently mentioned as László “Objective” Lengyel, this time
proved to be the very partial mouth-piece of the international money world. He argued with
the fact that he next government would not be able to divert from the prescriptions of the
creditors and of the International Monetary Fund, because, in this case, it would confront the
credit raters and the international financial structures, which would immediately give a hard
reply. The forint would shake immediately, and even the whole financial system could
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collapse, because the international money world does not permit jokes. They punish strictly
those who do not satisfy their demands.
The first answer to this was the fact that the collapse of the financial world order –
which then deepened into an economic world crisis – was caused by the unscrupulous and
irresponsible speculators of the same money world, the so-called investor financiers. The
states and the taxpayer citizens had to bear the immeasurable losses caused by them. But this
detrimental speculator group of interest could reach that they – the states and the governments
– spent the public money not on helping the productive economy, but on the bailout of banks.
Although the state aids of astrological size (United States: 4.5 trillion, i.e. 4,500 billion
dollars – European Union: 3 trillion, i.e. 3,000 billion euros) could either have been given
to the productive enterprises directly, and so several million employees would not have
been forced to lose their jobs, and even the economy would not have fallen into a deep
recession. In the case of Hungary, it is proved that the faulty currency policy of the central bank
caused the financial vulnerability of the country, and this resident in Budapest of the
international money world caused the fact that the otherwise already over-indebted country
had to take up a further 25 billion dollars stand-up credit from the International Monetary
Fund and from Brussels. But, while they kept declaring that they would use this money for
assuring the crediting of enterprises that assure workplaces, they actually used the borrowed
money to assure that the speculation capital arrived in Hungary could unlimitedly take out the
profit, which it gained through the Hungarian interest rates kept unjustifiably high.
In 1998, when the economic crisis caused by the international speculators also swept
over the Asian “little tigers” (starting from Thailand, the crediting system collapsed in South
Korea, Indonesia, Taiwan, Hong Kong, but also in Singapore), there was only one country in
South-East Asia, Malaysia, which stayed on foot. The international speculator groups of
interest performed here the same operations as in all other countries, but the financial collapse
did not take place, because the current president of the country, Mohamed Mahathir did not
permit the speculators to take out their profit from Malaysia, at the expense of the collapse of
the financial system of the country. They did not take away from them even a penny, but he
forced them to invest their huge profit gained in the country through speculation in Malaysia.
By this, he reached that the Malaysian economy did not collapse, and the Malaysians
could keep their jobs. The international money world, including György Soros, of course
took offence at this and spread curses on the “authoritarian” Mahathir, on this enemy of
the democracy, who dares to consider the interests of his own people and country more
important than the interests of the international speculators. Who does this, of course,
cannot be considered a democrat, in the respect of the degenerated democracy of the
money rule world order. László Lengyel, one of the front men in Hungary of the international money world
and its submitting servant, should know that such a government, which undertakes the
representation of the real needs, interests and values of the Hungarian nation, really does have
the means to defend the Hungarian economy, otherwise in depending status, against the
speculator groups of interest misusing their power. This means is nothing else than what we
have already made reference to: the protectionism. Of course, the speculators regard the
protectionism a damned thing. And they call the real representation of the interests of the
population populism disdainfully. However, populism is nothing else but standing up against
the unlimited freedom of usurers, for the defense of the interests of the populus (the people).
The usury money world lives on the work of this populus. The usury money world does not
produce any kind of values, it only shares the goods produced by the populus. Thus, the
populism is a policy based upon a moral order of values, serving the public interest. It is not
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identical with the demagogy, which means the misleading and the propagandistic deceit of
the public opinion with the tools of the conscience industry.
In our opinion, the national government detaining democratic legitimation really does
have to employ the tools of protectionism, if the speculators of the money cartel started to
play fast and loose with the forint, as they did it in 2008. The response to this abuse of the
money power would be that the legitimate government temporarily limits the irresponsible
and detrimental size free movement of the capital, within it the speculative money capital. For
this, obviously, it is strictly necessary to take back, at least partially, the monetary royalties.
The issuing of money, the regulation of interest and exchange rates, as well as crediting are
important public functions. The money system must be in public property, and thus only
democratically elected institutions are allowed to exert control over this public function. And
these two institutions are the National Assembly and the Government, and not the Monetary
Council of the MNB, which consists exclusively of appointed bureaucrats, independent from
the democratically elected Hungarian parliament and government. They do not have to stand
in front of their electors and give account of such irresponsible decisions of them, like, for
instance, that in Hungary, in the latest two decades, the real interest rate was still 4-5% higher
than in the European Union, including also the neighbouring countries.
The central bank did this so that the usurer speculators could bring here their money
and securities, to siphon this real interest margin of 4-5% or even higher. In his article Wrong
diagnosis, wrong therapy, György Surányi stated correctly that the Hungarian banks,
including the MNB, did not have a sufficient currency deposit, due to the wrong decisions of
the MNB taken since the summer of 2006. However, Surányi is wrong in saying that all this
was caused by the credits, taken up primarily on Swiss francs basis by the so-called currency
borrowers. The real cause was that, in the form of short-term credits, the international
speculators brought huge sums to Hungary, in order to get an interest yield amounting to 10-
12%, instead of the European 1-2% credit rate.
The demand for external financing, reaching 8-9% of Hungary’s GDP, combined with
the continuously increasing external indebtedness, would have needed a bigger currency
deposit than the MNB deposited. According to Surányi, the liquidity crisis touched Hungary
so sensitively, and it had to employ external aid because, on one hand, the state debt was high,
and, on the other hand, the stock of the so-called uncovered currency credits was also high.
However, all this is not the complete truth, according to Surányi. According to Surányi’s
analysis, in the autumn of 2008, the Hungarian economy, together with the other economies in
the region, was also hit by a strong shock. The collapse of the external demand and of the
export markets cause a shock in the real economy. The liquidity shock, and the narrowing of
the currency and forint liquidity also shook the Hungarian economy. The situation was made
even more serious by the fact that Hungary has lost, even in the years preceding the crisis,
those budget possibilities, by which it could alleviate the effects of the effect.
Therefore, due to the irresponsible economic, primarily budget policy of the previous
years, the fiscal policy could hardly temperate the effects of the crisis. The government and
the MNB have decided – wrongly – the further decreasing of the deficit. All this was the
consequence of the wrong diagnosis, according to Surányi.
Instead of the unfunded loosening of the monetary policy, the government and the
bank of issue should have taken measures in the interest of the real economy. The analysis
written in a fashionable professional jargon of Surányi is essentially relevant. Where he
misinterprets, which is a very important fault, is that why the indebtedness in currency of the
Hungarian economy and of the whole Hungarian society rocketed. And the cause of this is
unambiguously that the international money world flooded the country with speculative
capital so that, due to the interest rate kept totally unfoundedly high by the MNB, it could
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siphon the big interest margin. For this, the currency deposit of the MNB proved to be too
little, i.e. those 17-18 billion euros, which were on the currency account.
Péter Róna, in 2009, but even previously, declared continuously that the interest rate
kept totally unfoundedly high by the MNB, in the interest of the speculators, means such a
competition disadvantage for the Hungarian entrepreneurs, against the multinational firms,
which they are not able to work down. The unequally high real interest, caused by the
monetary policy, makes the credits extremely expensive for the Hungarian entrepreneurs. A
Hungarian entrepreneur, even in our days, has to pay three or four times more for the
credit than the entrepreneurs in the neighbouring countries. A further disadvantage is
that the multinational firms get a disproportionately high subsidy, while, at the same
time, the small and medium-size entrepreneurs with a poor financial background do not
get such subsidies. All this made even worse by the extreme income policy, and by the fact
that the branches of economy do not detain strategic, long-term plans. Since these small and
medium-size entrepreneurs employ the most employees, the above mentioned circumstances
mean not only an economic, but also serious social problem.
The high forint interest, maintained by the MNB for the sake of the international
speculators, has a destructive effect also because it not only deprives the Hungarian
entrepreneurs of the necessary financial resources, and brings the imported goods into a
competitive status, but the forint getting in this way unfoundedly strong deceives also the
population. It creates the illusion that the income of the people will be enough to reimburse
the credits they took up. But when the correct ratio between the forint and the euro is
established, they are not prepared at all for this. The MNB, as the resident in Budapest of
the money world, argues with the fact that it cannot decrease the interests, because in this
case the foreign investors would turn away from the forint and the Hungarian state bonds. The
bureaucrats of the monetary council, who do not owe political responsibility, do not take into
account that the unfoundedly high Hungarian real interest necessarily leads to the definitive
collapse of the national economy. Péter Róna writes the following:
“Today, only the blind cannot see that the monetary policy of the MNB has nothing to
do with the actual needs of the national economy, but has much more to do with the
greediness for profit of the banks operating here. Anyway, how can it be that the banking
sector of one of the weakest European economy has a profit rate two times bigger than the
average of their mother banks, if not with the conscious collaboration of the monetary policy?
In whose interest was to increase with yearly 40% the indebtedness of the Hungarian
households? Who made and makes possible the unfollowable billing of the banks, the
unilateral amendment of the credit contracts, and all that series of arbitrary actions, which
leads to the dislodging of the Hungarian families? All this cannot be entered into the account
of the governing party, but that fact yes, that it takes in the hunter story of the banks and of
the MNB.” ( Népszava, 28th
June, 2009)
In connection with the currency loans – also in his interview published in the 29th
June, 2009 issue of the HVG magazine – Péter Róna set out that it is necessary to get out of
the currency credits. Even the foreign creditors and investors know how big a risk the
currency credits represent. They try to qualify us as a “high risk country” referring first of all
to this. The state finance deficit plays only a secondary role. Hungary cannot influence the
exchange rate of the foreign currencies, as the Swiss franc of the Japanese yen. The stock of
loan of the country taken up in currency is a ticking bomb. Until the country cannot get rid of
it, it really must follow such an economic policy, which does not serve the interests of the
domestic national economy.
They concentrate on a single goal: to prevent the devaluation of the forint. All this,
however, has hardly anything to do with the actual capacity of performance of the Hungarian
economy. Péter Róna, from the point of the domestic productive sphere, finds a 320-325
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forints / euro exchange rate founded, because, in this way, the Hungarian enterprises could be
competitive. On the contrary, a 250 forints / euro exchange rate would be necessary so that
the capital value of the currency credit stock should not get out of hand. According to Péter
Róna, this contradiction could be solved by transforming the currency credits into forint
credits. But the question is:
Who should pay the costs of this?
Péter Róna is on the opinion that a considerable part of the costs should be covered
by the commercial banks, because it was them who drove the national economy into this trap.
On the other hand, Péter Róna finds the depreciation of the forint inevitable. This will spoil
the credit portfolio of the banks. Thus, as a former active banker, he is very critical
concerning the operation of the banking system in Hungary. The commercial banks and even
the MNB had an irresponsible conduit in the field of currency crediting. Their bankers made
giant professional faults when they drove the national economy into the currency debt, behind
which short-term profit interests are hiding. By the fact that the MNB kept the basic interest
rate high, they could put a huge additional charge on the currency-based credits. The banks
used the fact that, in this time, the Swiss basic interest rate was 1.5%. Nevertheless, the
Hungarian borrowers were only apparently lucky with it, and only until the exchange rate of
the forint stayed strong.
The economic politicians of the Fidesz, preparing to take over the government, have
been criticizing, since the end of 2008, the basic interest rate kept unfoundedly high by the
MNB. Péter Róna, but – let us add – even other economic experts, as, for instance, László
Bogár, Magdolna Csath, László Gazdag, Lázár Pavics and István Varga (not the Minister
of Economy) have been warning, for several years, about the expectable tragic outcomes.
However, Péter Róna emphasizes primarily the fact that the amount of the currency credits of
the population reached eight thousand billion forints. It was, first of all, István Varga and
László Bogár who pointed out that the indebtedness in currency of the country was caused
primarily by the speculative capital arriving unlimitedly in Hungary. These hot capitals could
arrive and leave frequently avoiding the banking accounting, without any financial control,
while they took out their huge profit from the country, making use of the Hungarian foreign
currency deposit.
If the goal is to considerably decrease the volume of currency credits, then such a
programme must be elaborated through consensus, which will be approved also by the
western financial structures. Of course, the transformation of the currency credits goes
together with losses, but they should be undertaken by the domestic banks. They can even
refuse this, but, in this case, they will have to count with the fact that they will have to cover
the losses caused by the collapsing credits. The profit of the Hungarian banks was quite high
in the latest five years. Therefore, it is reasonable that they should bear one third of the costs
of transformation of the currency credits. This means that they should take over one third of
the mentioned eight thousand billion currency credit. The second one third should be repaid
by the borrowers, while the third part by the state.
According to the opinion of the writer of the present lines, this is not enough, because
the indebtedness in currency of the state can be increased immensely also in the future by the
huge speculation sums outside the accounting, which arrive for the interest surcharge in the
country. Therefore, it is indispensably necessary that the European banking system could not
abuse continuously of this system, at the detriment of Hungary. The unlimited possibility of
abuse of the European banking system is the main responsible for the Hungarian financial
situation, because it controls, in fact, that central bank, which is not responsible for its
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decisions, in any form, to its owner, the Hungarian state. At the request of the international
money world, the Parliament adopted such an Act on the Hungarian National Bank, which
stipulates that the National Assembly, the Government and the Ministry of Finance can have
no voice in any substantial decisions of the MNB, being in 100% state property. The MNB,
the Hungarian National Bank, is Hungarian only in the respect that if it is in deficit, it can dip
the hand into the national budget to substitute it. But, on the other hand, if it has a profit, it is
not obliged to transfer it to the budget, but it can use it to replenish its capital stock.
This situation must be changed urgently, in the way that the state sovereignty
regarding the monetary royalties, given over with the “50% act”, should be restored, and thus
it should be prevented that the European banks could unlimitedly intrude into the financial
affairs of that Hungarian state, which also has extremely important public duties. The
exclusively profit-oriented European banking system does not have such obligations. If we
observe from closer the activity of the Central Bank of the European Union, the Frankfurt-
based ECB, we can face the fact that the EU practically does not buy and use as deposit the
state bonds of its eastern member states. By this, its shows a lack of confidence, which
influences detrimentally the credit rating of the eastern member states of the EU. And if the
credit rating on the money market of a country is bad, it can get credits only on a higher
interest.
In order to reach that their state bonds should be bought however, these states
(including Hungary) are forced to offer higher interests, and thus to make them more
attractive. This is one of the causes why the interest rates are higher than the average in
Hungary. But this does not explain why – for instance, in spite of the interest rate cutting-
down of the MNB in February – the credit is still three times more expensive in Hungary
than in the Czech Republic or in Poland. The dependence and the servile cooperation of the
MNB surpasses the dependence and servitude of the central banks of all the neighbouring
countries.
The Hungarian state cannot avoid the fulfilment of its not profit-oriented public duties,
for even more because the Hungarian population, deprived of its economic basis with the
privatization of the national wealth, is not able, on market prices, to perform neither the
biological, nor the social reproduction, i.e. is not able to reproduce itself as a competitive
labour force. Thus, the one-dimension profit mentality is extremely malign, and no society-
building programmes can be accomplished without taking the monetary authorities under the
control of the state. The private money monopoly must be terminated, and the public money
system operating as a state public service must be restored.
And here we return to the already quoted sentences of László Lengyel. The public
personality acting also as a financial expert should acknowledge that the global credit money
monopoly, operated with the current interest mechanism, is a kind of card game. Its rules are
card game rules, which can anytime modified on common accord, unlike the natural laws,
which cannot be changed in this way. And if the hazardous money system, based upon
unlimited usury freedom – a kind of global poker game – has proved that it causes
immeasurable damages and losses to the whole human civilization, then this hazardous card
game must be changed to other card games. Let me mention just a few of them: such are the
canasta, the tarot, the bridge, or, for the Hungarians, the good old “ulti” (“last trick”).
Thus, the financial expert should not frighten the national forces preparing for getting
to government with telling that they have no other possibility than the current so-called crisis
management, that is the unconditional serving of the transnationalist money cartel, because if
they do not do this, the international money world will punish them severely, as it could be
seen also in the case of Greece, in the first months of 2010.
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Deliberately misinterpreting of the meaning of the words is life-
threatening
When the Hungarian society expects the government of national forces to help them
get out of the crisis, some sociologists and public personalities confer about that the
Hungarian middle class is hunger for the consolidation and it will be achieved by the right.
This is asserted by Ákos Szilágyi, according to whom, after the “disorder” of the freedom, the
order of the lack of freedom will come. According to Szilágyi, writer and public personality,
the year of the change was not 2010, but 2009. It was the year when the cold civil war, which
lasted for seven years, came to an end. The resignation of Gyurcsány signaled the defeat of
the group of interest called by him existing left, and by us globalist-technocrat leadership
layer. According to Szilágyi, the right has already won the political war, but this is not
identical with the victory in the elections. This is why he considers the year evaluation speech
of Viktor Orbán the speech of the victor, which shone up the promise of the long-awaited
consolidation.
The analysis of Ákos Szilágyi is misleading, because he uses unsubstantial and
deceiving terms. There is no “right” or “left”. There are the national forces, representing the
real interests of the majority of the Hungarian society, and there are those, which are totally
committed to the interests of the international money world. The latter ones proved to be the
cosmopolite, comprador and collaborator servants of the transnationalist money cartel. In all
such cases when the Hungarian society had to choose between interests of the Hungarian
nation and of the Hungarian state, in all cases, without exception, they preferred the
unscrupulous selfishness of the international money world. Such an antinational leadership
layer was not present in all Eastern-European countries.
In the Czech Republic, for instance, the Czech leadership maintained the Czech heavy
industry in public property, which brings considerable income for the Czech state, used by it
for the benefit of the Czech society, so for public purposes. And they did not privatize 60% of
the former state property, but, when it was possible, re-privatized it, or distributed, with
coupons, the right of property of this wealth among the citizens. So, the Czech society is not
propertiless, and the Czech citizens do not get an income only from their wages, but, as
owners, they dispose of the important part of the yield of their property.
With this example, we only wanted to support that the so-called cold civil war is not
being fought in the sphere of force of the unintepretable left and right, but between the groups
of interest, which gained the political and economic power, and which serve the globalist
internationalism, instead of the communist internationalism, and the majority society, done
out of its property. It is not possible to create a community of interest between the globalist
forces striving at the annihilation of the nation and the national forces striving at the survival
of the Hungarian nation. It is not possible to create unity between those who, figuratively
speaking, sit in a train heading for Vladivostok, and those who, say, are sitting in a train
heading for Madrid. On the other hand, we can democratically argue about whether we
should travel westward or eastward by train, car, ship or even plane. Here the pluralism is
motivated. It is not the opposition and the governing power opposing each other. Namely
because the communist and globalist internationalism cannot be in a mutually supposing and
complementing relationship with the globalist forces, at present in the service of the
transnationalist money cartel, interested in the looting, weakening and annihilation of the
Hungarian nation. Such a vision of future, national strategy and ideological system, forming
an organic unity, is not possible, which could fertilely connect the globalist internationalism
with the struggle for survival of the Hungarian nation.
The globalism is in irreconcilable antagonism with the nation state, with the
enforcement of the national interest. In fact, the unity of the survival and extinction should be
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created, the life and the death should be reconciled. The once communist globalists, now
calling themselves democrats – for whom, the essence of democracy is the assurance of the
unlimited usury freedom of the money capital, with the maintenance of certain democratic
appearances – launched a merciless attack against Viktor Orbán in connection with his so-
called “speech of Kötcse”, because he called their bluff. This speech was published by the
literary magazine Nagyító. The globalist internationalists did not like such assertions of the
speech like “in our days, the duality of the system seems to come to an end, and a central
political sphere of force is on the way to appear, which can be owed to the strengthening of
the right”. But they did not like either the following: “there is a real possibility that the next
15-20 years of the Hungarian politics would not be determined by the dual sphere of force.
(…) A big governing party will be created, a central political sphere of force, which (…)
formulates the national affairs.”
According to historian István Vida, this reminds of the so-called Unity Party that can
be linked to the ten-year period of prime ministry of István Bethlen (1921-1931), which
could assure for a long time, even after Bethlen’s leave, that the will of the government
should prevail. According to István Vida, the creation of a similar, essentially one-party
dominance within the present-day conditions – after an overwhelming election victory – could
really marginalize the weak opposition. However, he adds that there would still remain
possibilities for the actions defending pluralism of the free press (the writer of the present
lines adds quickly: as far as such a mass-media can be free, which is supported by the finance
oligarchy), the intelligentsia and the opposition.
According to Mária Ormos, full member of the Hungarian Academy of Sciences,
what Viktor Orbán said is “nothing else than totalitarianism, because these sentences mean
the same in all epochs”. Ormos added that she cannot remember anybody else who
“expressed so exactly, formulated so concisely his totalitarian endeavours.” According to
Ormos, it means more than in the case of the Unity Party of István Bethlen. Namely because
this party, in a way or another, tolerated the pluralism, it had an operating parliamentary
opposition, but Orbán in fact calls off the pluralist, multi-party politics, because he precludes
the substantial activity of any other party besides or against his own party.
Ildikó Lendvai, former communist censor, and nowadays the convinced adept of the
globalist internationalism, put it this way: “Orbán announced straight the policy of the power
without control”. Viktor Szabadai, the agent in charge of the SZDSZ (Federation of Free
Democrats), thought: “If we look not forward, but 20 years back, we can see that, at that time,
all parliamentary parties of the present struggled so that the state party rule should be
changed into plural democracy”. According to Károly Herényi, deputy chaiman of the MDF
(Hungarian Democratic Forum), “From the thinking of the chairman of the Fidesz irradiates
that, according to him, the one-party system was basically good, only bad people made it
badly, and maybe he could do it well. This is the standpoint of the old “reform communists”,
and has nothing to do with the multi-party parliamentary democracy.”
In Budapest, the main power is exerted by the international money cartel that grabbed
the majority property of the Hungarian money system and economy, with the collaboration of
the collaborator groups of interest living in Hungary. The so-called political class is a
secondary actor, and is at the mercy of the international money cartel. If we speak about the
pluralization of the power, we should give an answer, first of all, to the question that how
could the single power exerting the main power, the money power, be pluralized. How could
it be transformed into such a power, which has a counterweight? The Hungarian state was
transformed by the collaborator group of interest co-opted by the money cartel in such a way
that, with its measures taken, called “reform”, they shifted the state from the service of public
interest to an institution that serves the selfish particular interests of the money cartel.
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Those who are complaining for the pluralism, are speaking, in fact, about the relations
prevailing only in the visible sphere of the political life. If we start only from that order of
values, according to which the prevailing of the social justice really plays an important role in
the arrangement of public affairs, and that the propertiless and deviceless social majority can
expect the accomplishment of its interests only from the state, which is still detaining the
public power, then the real pluralist counterweight would be the refraining of the organized
private power, which became too powerful. The real rivaling is between the organized public
power, the state, still partly representing the majority of the society, and the organized
private power, following only its own selfishness. The Hungarian society was split into two
because a part of it, being in the service of the international money cartel, took away the
public property from the majority, and made them badly-paid wage-workers, in a depending
situation in their own homeland.
Since property is power, the over-enriched groups of interests gained excessively great
power and possibilities for enforcement of interest. They convert their over-power, with the
most various techniques of corruption, into political and state administration decisions. In our
days, there is a multi-party one-party system in Hungary, exactly because the international
money cartel seized the main power. It managed to melt the national wealth into the global
stock wealth of the international money world, and, by this, it obtained the last word in all
important issues regarding the Hungarian money system and economic management. This
democracy, seeming to be plural in the visible sphere of the political life, is not plural at all in
the non-visible sphere of the political life, but is palpably one-centered.
As for the representative of the MDF, who openly became the servant of the money
oligarchy, Herényi totally misunderstands the thoughts of Viktor Orbán. In reality, Orbán
wants such a plural political public life, in which the participants are all on the side of the
majority of the Hungarian population, confronted with the money rule world elite, which
follows exclusively its own selfish interests. The Hungarian national interests must be
enforced against this money rule world elite. Let there be many parties, which compete in
who can better enforce the Hungarian national interests, according to the system of values of
the social justice. In this question, a central political sphere of force can really created, which
could join the majority of the Hungarian society. The extremes are represented by those
groups of interest, according to which the serving of all needs of the international money
world can be harmonized with the interests of the majority of the Hungarian nation, of the
Hungarian society. But this is not possible! This is nothing but baked ice.
Those socialist and liberal groups of interests and politicians, who proclaimed aloud
their belonging to the Hungarian nation, for campaign purposes, should give account of why
they gave always priority to the demands of the money rule world order, when they had to
choose between the interests of the international money world and those of the Hungarian
nation. Could the interests of the money world have been better served than the Hungarian
liberals and socialists did?
The change of epoch, the beginning of a new era in Hungary means that, instead of the
servile serving of the decadent money rule world order, sentenced to death, we should shift
over to the new reform era, serving the satisfaction of the real needs of the majority of the
Hungarian society, the defense of its interests and values. The writer of the present lines
interprets in this way the speech of Kötcse, scanning the future, of Viktor Orbán.
The Hungarian people is Hungarian people only together
with the Hungarian land!
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Nobody can say exactly today how many hectares are cultivated in Hungary by
nominal owners. We even do not know whether they utilize their lands, or just leave them
fallow until they will be able to sell them at a high profit. We even do not know the size of the
land being in the property of the Nemzeti Földalap (National Land Base), the national land
base management organization, commissioned with the management of state-owned lands.
So, we can not even know how many hectares it detains, over how many hectares it exerts the
right of control, and how many hectares it lets out, to whom and for how much. The interested
person can get somewhat more exact data, if he examines the records of the Földet
Életjáradékért (Land for Life Annuity) programme.
The most important question is whether a foreigner can own land in Hungary or not.
Those citizens of the Union who live on the place for at least three years and perform
agricultural activity for also at least three years, can buy fertile land and can become
landowners. The seven-year land purchase moratorium concluded with the European
Union expires in 2011. Theoretically, at this date, the domestic land market will open in front
of the citizens of the Union. Less is said about the fact that even after 2011 it will be possible
that the Hungarian state could determine the land buying order. And the rules adopted and
applied by the EU, which make the land purchase of citizens from other member states more
difficult, can be built into this order schedule. And it is also possible that the Hungarian
authorities would prolong the land purchase moratorium for three more years.
A further question connected with the fertile land ownership and utilization is whether
the animal breeding farms should be given land or not. There are groups of interest, which
approve that the economic companies should get land, taking into account the current fodder
situation. Such a measure would assure them the necessary fodder. According to another
group, it would not be reasonable to allow this, even more because these animal breeding
farms do not have, anyway, enough financial means for this. They also refer to the fact that
the majority of the domestic animal breeding farms are already in foreign property. Before
1994, the cooperatives could get land property. Yet, after 1994, only private persons were
allowed to do this, but the law did not dispose of the lands being in the property of firms.
Over time, the cooperatives were transformed into economic companies or partnerships, and
thus fertile land got in the property of the so created limited liability companies and share
companies. This did not comply with the prescriptions of the act on land property being in
effect at that time. In the meantime, most of the mentioned economic companies were sold,
and the new owners are from among the foreign private persons or legal persons, detaining
the necessary financial means.
At the end of 2009, the size of the lands being in the hands of foreign citizens in a
form of another can be, according to estimates, between 600,000 and 1,000,000 hectares.
These are, in fact, lands obtained with masked, so-called “pocket contracts”. However, if a
nationally committed government gets at the head of Hungary in 2010, it will be possible to
reach, with only the amendment of a few laws, that these contracts should not be validated.
The national government must adopt again a law, which will assure the pre-emptive right for
those who cultivate the land, favouring thus the owner against the lessee. Another important
requirement is the limitation of the size of obtainable land. The original concept was that no
Hungarian citizen could obtain more than 300 hectares of land. Due to different legal “back
doors”, this is not the situation nowadays. Therefore, it is necessary to enforce the principle
according to which the fertile soil should get to those who cultivate it and do not regard it a
capital suitable for speculation.
The European Union, breaking even its own basic principles, wants to impose,
obligatorily, over twelve Eastern European member states that the principle of the free
movement of capital should extend also over the fertile land. According to the regulations in
effect of the European Union, any basic regulations concerning the ownership system falls
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within the authority of the given member state. By breaking the principles of reciprocity,
equal judgment and mutuality, the Commission of the European Union issued such an
interpretation, according to which the newly accessed 12 countries are obliged to consider
their fertile land property a capital. As a consequence of the financial and economic crisis of
the last period, the free movement of the capital was considerably limited already in the case
of the real capital. It came to light that the capital movement, remained totally without
control, have led and will lead to huge malpractices. Since, even starting from its inner
essence, the fertile land is not a capital, because it is such a natural facility, which cannot be
produced by man, which is unique and irreproducible, thus it was ab ovo incorrect to place it
under the free movement of the capital. This interpretation of the Commission of the
European Union should be withdrawn urgently, and this regulation must be taken out of the
acquis communautaire of the European Union. It must be made unambiguous that the
regulations concerning land ownership belong to the national legislation in all the 27 EU
member states.
The Single Payment Scheme
The essence of the SPS, Single Payment Scheme is that the subventions previously
linked to the agricultural sector will be transformed into income compensations independent
from the production. It is very essential that the title to compensation will become a subjective
right gained upon historical basis, which is due to the producer, irrespective of what he
produces on his land. According to the socialist agricultural governing, the advantage of the
SPS system, against the currently applied system, is that it harmonizes better to the
requirements that are considered primordial by the agricultural policy. It stabilizes the
business structure and simplifies the administration. After the introduction of the SPS system,
the agricultural subvention transformed into income subvention is such a right of property
value, which is negotiable, can be sold and bought. According to the socialist agricultural
politicians, with the introduction of the SPS it will be possible to guarantee the income
security of the producers, and their behaviour conforming to the market demands. The
precondition of the SPS subvention is that 19 environmental, animal protection and hygienic
prescriptions must be strictly observed. The introduction of the SPS system also makes it
possible a new information technology development worth three billion forints. According to
the adopted rules, the historical basis applied at the introduction of the SPS is made up from
one of the first three months of the the year 2008. This level of the production is the basis.
The Bajnai government sticks to the introduction of the SPS system. It does so in
spite of the fact that László Sólyom, president of the Republic of Hungary, raised
constitutional objections at the Constitutional Court and asked for an ulterior norm control in
the case of the act serving as a basis for the introduction of the SPS system. This subvention
system has two components: the regional subvention (Hungary is considered a region from
this point of view), and the additional subvention, calculated on the basis of the 2006
subvention. The provision according which the right for the subvention from the EU would be
an independent right of property value caused an especially big debate. According to the
President of the Republic, the principle of the legal security would be injured if the right for
subvention were separated from the right of property. The owners, who earlier signed
longer-term contracts of letting out or leasing, could not count with the right of property
value, becoming independent in this way, and with the consequent change.
Until now, the SAPS, i.e. Single Area Payment Scheme was in effect. If we compare
the SAPS with the SPS, the Single Payment Scheme, it will come to light, for instance, that
the animal breeders will get much more money in the new system. The plant cultivators will
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get approximately the same amount, and the grazing pasture animal breeding farms will get
much lesser. The Magosz (National Federation of Hungarian Farmer Associations) also called
the attention on the fact that the SPS system will not assure a surplus resource, only the
distribution will change, namely according to the interests of the circles standing close to the
socialist-liberal government. Probably the animal breeding would get a higher subvention,
because the plutocracy is present to a much greater extent in animal breeding than in plant
cultivation. Those who support the SPS, emphasize that the size of animal breeding is rapidly
decreasing, and the subvention system could limit to a certain extent this negative process.
The Magosz strives that the new national government should abolish the SPS system.
In November 2009, Béla Turi Kovács, the chairman of the Civil Association of
Smallholders (Kisgazda Polgári Egyesület) informed that 98% of the totally available
agricultural subventions are received by less than 2% of those who deal with agriculture. The
SPS system would definitively close out the little ones from most of the subvention
possibilities. The Fidesz-party parliamentary representative also called the attention to the fact
that it will be the lessee and not the owner who is entitled to receive subvention. If the lessee
calls off the contract and goes on from the previous owner to another rented property, takes on
with him the possibility of the subvention, and so the owner will remain without subvention.
And the lands without subvention will practically become valueless and will not be suitable
even to be let. This affects detrimentally one and a half million Hungarian people.
The socialist-liberal governments proved to be consequent in the fact that they
favourized the large estate system, which wants to make preparations primarily for the
monocultural cultivation of cereals. This is detrimental to Hungary, and serves only the
interests of a thin layer of big landowners. And the creation of one million new workplaces
needs fertile land to be worked by the largest social layers.
How can the agricultural land be kept in national property?
Endre Tanka is a university professor, an academic doctor. With the title The
programme of the national survival in terms of the land, he elaborated such a desirable land
preservation strategy, which is, at the same time, also possible, because, even remaining
within the framework of the legislation created by the European Union and the Hungarian
state, it can assure the fertile land for the Hungarian farmers. Tanka states as a fact that, since
1989, the neo-liberal land policy, serving the capital utilization strived at the capital rule
appropriation of the land representing the territory of the Hungarian state. This policy
supported, in the name of the free movement of the capital, the monopoly status concerning
land ownership of the capital investor, while in the sphere of land usage, it supported the
establishment of the large estate type capitalist big land ownership system. This land
appropriation process was made possible by the fact that Hungary’s financial system was
totally subjected under the control of the international financial community.
In our days, the physical survival of any people is already decisively determined by
the ownership of the land and water, as natural life conditions, as well as the exclusion from
the ownership of them. This is why the specialist in agricultural right emphasizes that the fact
that the Hungarian land base has been put at the mercy of the market capital rule for two
decades can bring on the disintegration of the society and the loss of homeland of the citizens,
which will lead to the necessity of the admission of foreign population. All this threatens with
the gradual disappearance of the Hungarian nation.
The restoration of the public functions of the nation state can restrain this dangerous
process. The appropriation interests of the capital rule can only be counterweighed with a
value-based property policy, committed to the survival of the Hungarian nation. Against the
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society and economy organizing public functions of the land, the capital creating and capital
utilizing function of the land should be pushed into the background. One of the main goals is
to preserve the free self-determination of the state over the land forming its own territory, and
it should enforce this to the benefit of its citizens. To this is connected also that the state itself
should decide on the utilization of the production, processing and sale capacities, at any time,
of the Hungarian agriculture and food industry.
If the state public power wants to form and influence the land relations in the interest
of the public benefit, and if it regards the property order a living and operational system, then
it must surrender its constitutive elements – land ownership, land utilization, land protection,
land management – to the democratically established public interest. In the case of land
ownership, the ratio of the state land property must be increased. With a ban of transfer, a
state land fund should be created for two thirds of the land base. The state land fund should
enhance and promote the family farming, and the small and medium-size producers should
be brought into such a situation that their living and their demographic reproduction should be
assured. With the promotion of the family planning of young farmers, the employment can be
enlarged, and the improvement of the living and the quality of living of the whole provincial
country can be assured.
The property policy of land usage should serve the redistribution, for public interest,
of the available land. The agricultural law specialist takes into account, as a threatening
danger, the forecast that migration waves will reach Hungary, and they have to be treated in a
national defensive way. The food production and food security destination of the land should
be raised over the other land utilization purposes. From the point of view of the value-based
property policy, four goals are emphasized. One of them is that the land basis forming the
territory of the Hungarian state – irrespective of its form of property – should be preserved as
a national wealth. The second such goal was that, through the demolition of the big land
property system, the agricultural operation regulation should serve the solidification of the
micro, small and medium-size agricultural enterprises, based upon the own work of the land
user, as well as the increasing of the supporting capacity of the fertile land.
The third goal is that, in the usage of the land for production and other purposes, the
profit-making speculation, contrary to the public goals, should be closed out, together
with the establishment of the ownership and land property monopoly, enforcing this. And the
fourth goal is that the acquisition of the land property and of land utilization should be
assured primarily for the members of the local settlement communities, who settled down
definitively, and are farmers performing an agricultural activity.
After this, in his above reviewed programme, Endre Tanka sets forth what kind of
institution system would be able to assure the achievement of these goals the most effectively.
He points out, firstly, that the state must undertake a dual role in order to fulfil the life-
maintaining functions of the land. On one hand, the state should strengthen its land owner
position, on the other hand it should extend its public power control to the whole land base
forming the territory of the country, even if the given land is the property of somebody else.
We must start from the principle that the state is the best landowner (as we can see, this is
exactly the contrary of that ultra-liberal dogma, proved to be a delusion, according to which
the state is the worst owner). Only the state land ownership can prevent that the land private
property could get to absolutism, and the land usage would be totally subjected by the capital
rule. The preponderance of the inalienable state land property could assure also the handling,
according to the public interest, of the expectable land demands caused by migration.
The state land property may convey land to farmers not in the form of property, but
long-term land tenure, namely that this land tenure will be connected to the accomplishment
of the public functions. The state property will make it possible that the state could serve the
population growth strategy and the social policy with institutional effectiveness.
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According to the programme, it is reasonable to involve three resources into the
foundation of the state land property. On one hand, a ban of alienation must be introduced
for the existing state fertile land base. This will assure the preservation of altogether one
million two hundred thousand hectares of public property, consisting mostly of forests. The
expropriation of nature conservation areas, obligatory until 2010, must be extended onto the
Natura 2000 network, which creates two million hectares more of state land property. And
finally, from the proportionate share property lands, the state must buy up, at a market
price, the lands offered for this purpose, and then should consolidate them through property
management. All these will get also into the unalienable state land base. This source will
enrich the state land property with one and a half million hectares, which, in this way, can
reach 4–4.5 million hectares. Projected onto the whole fertile land base, which amounts to
7.8 million hectares, this can make the foundation of the leading land property pondering of
the state, and of the utilization of the vast majority of the domestic land base as public
property, for public purposes. This can assure the preservation and survival of the Hungarian
people, the Hungarians, the Hungarian nation.
The programme presents, in detail, how the state can make the foundation for the
family farming estates from its own land base. It can supply land for long-term use to young
farmers who undertake the conditions of farming. The state will preserve, as a public wealth,
the forest properties and the nature conservation areas for the society, but this can help the
plant cultivation on arable land and could increase the land base necessary for it only to a little
extent. At the same time, this is necessary for the creation of the goods-producing family
farming. This is why it is important how the legislation regulates the legal pre-emptive right
of the state for proportionate share property and, on the other hand, for all fertile lands.
According to Endre Tanka, the appropriation of land property by the state at land
market purchase price requires huge amounts of budget money. From our part, we add to this
that all this cannot be refrained by the fact that, in our days, the Hungarian state has only a
state debt of unpayable size. By issuing work-based Hungarian money instruments, this
problem can be handled efficiently, but, for this, it is necessary to shift from the current
monetary policy, controlled by foreign financial structures, to the monetary policy controlled
by the democratically legitimated Hungarian state organisms (national assembly, government,
ministry of finance), against the monetary policy controlled by the MNB (Hungarian National
Bank) and serving exclusively the interests of the international money world.
Tanka emphasizes strongly that, in the land usage, the state fulfils primarily not a role
of owner, but one of public power, which is based upon means of compulsion of authorities
and on sanctions assuring the execution. The state withdraws the land usage from under the
one-dimensional power of the money capital, and gives priority, instead, to the life-
supporting public functions of the fertile land. Among them, the most important is the
security of the alimentation of the society. Therefore, the constitutional responsibility of the
state is to force back the land speculation and strengthen the utilization for production
purposes of the land, against the non-productive utilization. This goal can be achieved through
the redistribution of the land base for public interest. The basic institution of this is the
agricultural production regulation. It has an extremely important consequence, namely that,
through the achievement of this, the state can demolish the big estate system within 5-10
years, and can make the ratio of the small and medium-size farms in land usage determining,
which, on the other hand, can enhance the wide consolidation of family farming. The state
must already prepare for the situation that it should satisfy the land needs optimally from the
point of view of the preservation and survival of the Hungarian nation, when the pressure of
the new migration waves increases, when more and more refugees, settlers, homeless persons
arrive in the country.
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Thus, the new land protection strategy should ban the definitive withdrawal of
fertile land from cultivation. This can be allowed only as a rare exception, and, in the
relative legislation, those cases must be accurately and comprehensively listed, when this can
still take place, exclusively for public interest. And when this regulation is evaded, such a big
and repeated fine must be levied, which, as a sanction, will be an efficient retaining device
against the usage of the fertile land for non-productive purposes. The right of making public
power decisions concerning the areal re-classification of the fertile land must be withdrawn
equally from the settlement, self-government and real estate authorities. This can be done only
by a central state administration organization, by the National Estate Policy Centre. If it is
necessary, a ban of alienation should be imposed upon the state land property, even with
the completion of the constitution. The right of decision about the state land property and land
utilization, as well as the management and organization of the National Land Base should be
relieved from under the authority of the Act nr. CVI of 2007 on the state property.
Endre Tanka finds it important that, at the same time with the termination of the
National Land Base, the National Estate Policy Centre should be created, which would
operate as a central state administration organization with national authority. The national
government should attain, at the Council of the European Union, the moratorium
(prolongation) of the ban of alienation of the Hungarian land with three more years, with the
application of the protective clause. This is an extremely important step, but, at the same
time, we have to be aware of the fact that the delaying of the accomplishment of the
obligation concerning the opening of the unlimited land market can solve nothing in itself.
The Hungarian nation can only defend the Hungarian fertile land, representing for it the basis
of its existence, if the society can force the political decision-makers to spend these three
years of delay on the execution of the land programme of the Programme of National
Survival.
A very big advantage of the Programme of National Survival prepared by Endre Tanka
is that it is in full concordance with the provisions of the European Union and of the
Hungarian legislation. All constitutional and legal background is assured for the introduction
of the proposed economic and legal institution system. In the era of the money rule world
order, this is the only chance for Hungary to withdraw the land, as natural habitat and fertile
land, as the condition of the survival of life, from under the power economy of the capital
rule, and keep it in the common property and use of the Hungarian nation.
The Hungarian people is Hungarian people only together with the Hungarian land. If
we cannot manage to keep this land Hungarian, it is almost certain that the extinction of the
nation will take place, of which our greatest poets have warned us. Mihály Vörösmarty was
probably wrong when he thought in his great poem Szózat (Summons), considered the second
national anthem of the Hungarians: “Around the graves where we shall die a weeping world
will come, and millions will in pity gaze upon the martyrs' tomb.” Most probably, there will
be no weeping millions, with tears of mourning in their eyes, around the grave of the
Hungarians. On the contrary, it is quite probable that the new owners of the Hungarian land
will live very well from the profit they will pocket, year after year, from the yield of this land.
That destructive world force, which, with money rule means, seized the world rule, the
power structures of which control also the European Union, and which, after World War I,
mutilated the historical Hungary, now already wants to take away the land of the remaining
Hungary. Since the public opinion is fed with that the formal institutions of the European
Union – the Parliament, the Commission, the Council of the EU – control this bureaucratic
institution, transformed into a supranational imperial structure, we hereby call the attention on
the fact that the real control is performed – of course, informally – by the private organization
of the money rule world order. Among them the most important ones are: The European
Round Table of industrialists, the European Council on Foreign Relations, the European
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Group of Trilateral Commission, the Bilderberg Group, and finally, but we could have
mentioned it in the first place, the European Financial Services Round Table.
The powers controlling the European Union, the successors of those who committed
the international crime mentioned on the name of the Treaty of Trianon, who – kicking up all
valid international legal principles: the historical, ethnic and self-determination principle –
mutilated Hungary, should be told the most definitely that the territory and fertile land of the
remaining Hungary belongs to the Hungarians. This would be reasonable to be stipulated also
in an international treaty. And, on the other hand, if it does not belong to the Hungarians, they
should tell frankly: to whom it belongs?
Interview with János Drábik
(A preliminary interview for the conference “Vision of the World – Battlefield of
the 21st Century – The Stock Exchange” held at the International Business School in
Budapest, on 12th
June 2010)
János Drábik is a writer, a jurist and a public personality, who, not incidentally, is the
expert of the so-called conspiracy theories. On June 12th
, he will also be the guest lecturer of
the conference “Vision of the world”. We asked him about the themes he is going to deal
with, and about the current market situation.
– Mr. Drábik, in our days, the European Union experiences the greatest crisis since its
establishment. Was this kind of collapse visible, or it could not be forecast at that time, or,
possibly, it was easier to introduce the radical changes in such a case, and this is an
artificially created situation?
– In my opinion, the European Union is an unnecessary institution, because, for all
good and nice that can be told of it (for instance, free movement of goods, information and
capital, the spiritualization of borders), there is no need for such a supranational imperial
structure. The EU was transformed into a supranational, bureaucratic water-head, which
consumes a huge amount of money. There is no need for the EU so that it should stay
economically competitive. The assertion according to which the bigger something is, the more
efficient and better it is, is not true. Behind the Union, there are powerful groups of interest,
the intention of which is to maintain, by all means, such a system, which can enhance the
creation of a world system controlled from a single centre. There are many who say that the
existence of the groups of interest striving at the creation of the “global share company” is a
mere paranoia, and there are no groups of interest striving at world rule. On the other hand,
the headquarters of the distinguished organization called CFT, the Council on Foreign
Relations, held a conference in Montreal in the last days. This is one of the biggest
organizations of the background power in the world. On the Montreal conference, Zbigniew
Brzezinski said that the creation of the world order – of the new world order – controlled from
a single centre is endangered, on one hand because the mankind has wakened to conscience
and startet to understand what happens around it, and, on the other hand, because the global
elite is divided, and a sharp struggle for power is going on in its upper circles. Its members do
not agree in several important questions. They could not agree in the question who should
dispose of the astronomical yield of the current money rule order. They also have sharply
diverging concepts about the future, for instance about whether the dollar should stay or not,
and if the dollar would be driven out, this process should be quick or slow. It is also an open
question what would be the covering of the new world currency, and which institution should
fulfil the role of the central banks of central banks. At present, the Basel-based BIS, the Bank
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of International Settlements is the global central bank. But also the idea was raised according
to which this role should be fulfilled by the International Monetary Fund. Many other
questions are awaiting answer, this is why the tension is extremely high.
– The “Greek drama” came to an end, but the Union is not in an easier situation at
all. In order to avoid the opportunity that another more country should share the fate of
Greece, the 27 member states of the EU agreed in creating a 500 billion euro credit fund,
which was completed with 250 billion euros more by the International Monetary Fund. A
great number of analysts said that it was a totally pointless idea, because the EU does not
detain an amount of 500 billion euro of mobilizable money, and if the produce such a big
capital trough putting the banknote press into operation, it could depreciate the common
European currency to a great extent. Still, why did they do it?
– Neelie Kroes, the former commissioner for competition of the European Union,
allowed, with zealous diligence, the member states to give over the state-issued moneys
(covered with the tax income) to the banks. These state subventions, bailout packages,
economy-revitalizing credits were destined fist of all for handling the financial and economic
crisis. Brussels approved the issue of not less than 4,100 billion euros state money. By this, I
only wanted to make you perceive that, if the EU or the financial structures need it, it is
possible to issue state money anytime, but when the productive branches should be helped, it
is not possible to perform the same operation. The state budget deficit of Greece, related to its
GDP, i.e. gross domestic product, was always moving in such an interval than at present. In a
strange way, this thing did not disturb anybody especially until now. But now the investors
suddenly “lost confidence”. This artificial “panicking” probably appeared so that they could
siphon further billions of euro from the stronger member states with this method. Through the
Greeks, the leading speculators of the money world, in fact, “shorted” the whole Eurozone.
The same elite groups of interest are responsible for making the financial system collapse,
which now speculated for the sake of weakening the euro: they pressed out 4,500 billion
dollars from America and 4,100 billion euros from Europe. As a consequence of this, most of
the states and governments got indebted beyond their means, and nowadays nearly nobody
can fulfil the stipulations of the Maastricht Treaty (the budget deficit cannot be higher than
3% and the external debt higher than 60%) in the EU any more. Therefore, it is certain that
the EU will change basically, since what is the use of such a system the rules of which are not
kept by anybody?
– This is understandable, but what will happen to the 750 billion euros?
– This money will also get to those financial groups of interest, which can be
considered, altogether, transnational money cartels. They transformed the money system of
the world into a gambling casino, and blew up the speculation money bubbles one after the
other, so that they could pocket horrible sums resulting from their planned bursting out. The
breaking out of the financial crisis and the bailout measures also made them richer. Within the
current financial and power relations, there are hardly other possibilities. Those who say that
all these are paranoid ideas, can freely look after the figures and facts. The owners of the
money power want to force, with this financial anarchy, onto the mankind, the acceptance of a
single-centered world order, which would be the modernized version of the money rule world
order. In this world-level money dictatorship, there would not be financial collapse, economic
world crisis or world war. From the current world, full of conflicts, the global “world and
order”, the state of durable peace would be born. From chaos – order!
– You mentioned that people start to wake to conscience. What are the chances of the
breaking out of the third world war? Social dissatisfactions frequently lead to situations,
which, ultimately, end in wars.
– This differs from country to country, but the world history proves that, in such
situations of crisis, local wars can break out much easier. Nevertheless, we cannot exclude the
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possibility of a worldwide war either. Unfortunately, we have to count with such a war. The
military deployment against Iran also bears within it the possibility such a turn, as a realistic
possibility. Instead of one American aircraft carriers, there are already two of them on the
waters near Iran. But also other warships are present in the area of the Persian Gulf. There are
already serious problems. The financial system of the United States has become extremely
vulnerable. If the dollar system collapsed now, further millions of American could be turned
onto the street. This could lead to demonstrations and even street riots. It must also be taken
into account that, at present, more than 200 million Americans detain shotguns (the
constitution guarantees the right to wear arms). This amount of handguns can partly be
neutralized if the supply of ammunition is limited, i.e. the owners of these arms will not be
able to buy ammunition. Within the UNO, the adoption of such an international agreement is
underway, which would ban or strongly limit the distribution and ownership of handguns.
(The conclusion of the Small Arms Treaty, from American side, is promoted by Secretary of
State Hillary Clinton.) The ruling elite could not manage to delete from the constitution the
right to wear arms. But it could reach that the international treaties overwrite the provisions of
the constitution. The dollar system cannot be terminated quickly even because of China.
China detains a currency reserve amounting to 2.5 trillion dollars (one trillion makes 1
thousand billions), and this cannot be inflated quickly, without serious financial, economic
and military consequences.
– And meanwhile Russia keeps building, in silence, the bases of the Eastern Union,
and it seems that the customs union will be established in certain countries of the Asian area
even this year. Will the world be bipolar again?
– This is a process going on for already many years, and the organizational frames of
the cooperation have also been created. The SCO, the Shanghai Cooperation Organization is
operating, the full members of which are also China, Russia and India. And there are also
countries that detain the status of observatory, like, for instance, Iran. The most populated
countries in the world, together with Russia, the largest country in the world, can achieve to
be the counter-pole of the Euro-Atlantic power, of the West. In essence, they fulfil this
geopolitical function even today. Today the United States is still the number one military
power in the world, but the supranational money cartel transferred, “off-shored” most part of
the American industrial production, and thus, in our days, America already could not stand on
its feet in the field of manufacturing industry and industrial goods production. The super-rich
bankers of the West – the structures of the financial world elite – could not draw China under
their control yet. The most populated and industrially the fastest developing country in the
world operates extremely successfully with money issued in China and covered with domestic
productive work for already many decades. And in India, the performance of the more and
more qualified, one-billion labour force offers coverage for the national money. These regions
can stand on their own feet. In the West, on the other hand, the system of private money
monopoly, operated through the interest mechanism, indebted to such an extent the actors of
the economic life, the states, the enterprises and the individual persons that the economic life
is nearly paralyzed under the weight of the ever increasing indebtedness.
– What are the chances of Hungary? Viktor Orbán seems to lean more towards China
and Russia than to the European Union.
– The European Union brought Hungary in a defenceless situation. The more
developed countries of the EU used both the Hungarian industry and agriculture for obtaining
and tapping a market, and pushed them into an uncompetitive situation. With a continuous
and planned indebtedness, the enforcement of keeping the interest rates high, the European
banking system siphons the results of the Hungarian labour to a greater and greater extent
year by year. The current credit money system, being in private property, is detrimental to
Hungary. The member states of the EU should also swift to the operation with work-based
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covered money. For this purpose, the monopoly position of the private money system should
be terminated and the public money system should be restored. For the sake of the
preservation of the living space of mankind, not sustainable growth, but sustainable resources
are necessary. The future of mankind can be assured by the shift from the money rule world
order to the harmonic world order, enforcing the social justice.
The Hungarian people also deserves ethnic borders
(An interview with the author made by Veronika Takács for the 10th
June 2010
issue of the Hungarian weekly magazine “Barikád”)
“The borders can be changed, indeed, in a peaceful way” – we are talking with Dr.
János Drábik, the retired leading programme editor of Radio Free Europe about our chances
in the 21st century and about the double standard.
– The disintegration of Hungary started with the treaties of Versailles and Paris. On
what basis could the great powers decide in this way on the one thousand years old
Hungarian state?
– All the problems, which are consequences of the peace arrangement of Versailles
that closed World War I, and of the peace treaties of Paris that followed World War II, lead
back to the fact that those who forced the peace dictates onto our nation neglected all
acceptable principles only in the case of Hungarians. They did not take the historical principle
into account, and they did not want to hear about the possibility that the historical Hungary,
with any kind of internal transformation, could persist. Either in the way that the larger
nationalities should get autonomy or the rank of fellow nations, or in the way of the
achievement of a confederation in the Carpathian Basin. They disregarded the historical
principle, and they did not accept the ethnic principle in the case of Hungarians. They
accepted the ethnic borders of all peoples living in the Carpathian Basin, what is more, they
even completed them with territories where the given ethnic group even did not live – but
neglected the principle of self-determination only in the case of the Hungarian nation. They
did not make it possible, in any form, that the population of Hungary could express its
opinion, the only exception was Sopron and its surroundings. In fact, that Austria, which was
punished by the fact that South Tyrol was taken away from it and given to Italy, was
recompensed with territories belonging to the historical Hungary, a region, which is called
Burgenland today. This is an artificial name, which did not exist before. The loser Austrians
were also recompensed with the Hungarians. The calculations of the great powers could only
be counteracted by the armed resistance of Sopron and the fighting out of the referendum,
during which the inhabitants of Sopron voted for Hungary. I am convinced that there would
have been more Soprons, if the principle of self-determination had been applied also in other
areas of Hungary. They kicked off all international principles only in the case of Hungary, and
the so-called realpolitik, i.e. the interests of the great powers was applied only for Hungary.
– Why were the international principles kicked off only in the case of Hungary?
– Who got out of the two world conflagrations as a winner, dictated the conditions, but
this does not explain why they did not take into account any principle only in the case of
Hungarians, among the peoples of the Carpathian Basin. It can be prevailing and achieved
that all Slovaks could live together, and even to separate, but it is not possible that all
Hungarians should live together in the same way. This question cannot be answered only if
we do not take into account what forces are at work in the background. These forces officially
are not present in the documents, but this does not mean that they did not exist and they did
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not have a decisive role. About this, Ferenc Fejtő wrote the most sincerely, in his book titled
Requiem for a once existed empire. He relates, in several chapters, about the fact that the
disintegration of the Austro-Hungarian Monarchy and the creation of many multi-nationality
small states was decided at the freemasonic world congress held in Paris in 1917. Fejtő also
writes that the freemasonry played a key role in that the World War I was transformed into an
ideological war, and, accordingly, an ideological peace was created. The points of view of the
realpolitik (representing the interests of the great powers) were applied only to the detriment
of Hungary. This is important, because if they admit this, they must give some kind of
explanation for it. If the peace arrangements of Versailles and Paris were born by kicking off
all international principles, then it is, indeed, a legitimate question that this should be
corrected to some extent by the leaders of the European Union, who are the successors of
those who made the peace decisions. This in not only about that what kind of tensions are
there between Slovakia and Hungary. Let us have a look: when Upper Northern Hungary was
broken away, more than one million Hungarians lived there, while nowadays only half of it,
and even them are wanted to be Slovakized with fire and sword, this is why they started an
attack against the language. At the time of the birth of the peace dictates, the ethnic principle
was the most dominant among all principles. If I ask a Slovak whether he has the right to live
in one and the same state, he will say: of course he has. When I ask whether also the
Hungarians have the same right, the will say: no, they have not. As long as they will apply
this double measure, newer and newer conflicts will raise.
– How should the double measure, prevailing on international level, be terminated?
– It is necessary to undertake the conflict that there is a Hungarian problem, and
primarily the legal successors of those are responsible for this, who created the peace
arrangements of Versailles and Paris. We cannot wriggle out of responsibility, and the
international law does not forbid that the borders could be changed in a peaceful way. There
are already several examples for this. Prior to the disintegration of the Soviet Union, there was
the country called Czechoslovakia, and now we have the Czech Republic and Slovakia.
Beforehand there was Yugoslavia, and now there is Slovenia, Croatia, Bosnia and
Herzegovina, Macedonia, Montenegro, Serbia, and even Kosovo separated. Indeed, the
borders can be changed in a peaceful way.
– It is hard to imagine this about that international community, which continuously
keeps silent when injustices, violations of the law happen.
– Of course, this is a conflict, but it is necessary to explain, for instance to the Slovaks
that if they separated from Hungary on the basis that they speak Slovakian language, then, on
the same basis, this must be recognized also in the case of the Hungarians. A government
representing national interests should undertake this, and should raise this question openly in
Brussels and at the UNO. Within the norms of international law, such compromises could be
attained, according which the borders may remain the same, but the Hungarians should get, in
exchange, territorial autonomy. Also the Jobbik should demand this. The world must be
forced to admit that there is a Hungarian problem to be solved, which is rooted in the double
measure that neglects the international principles.
– Do we have a government for this?
– It will not go without a struggle. Who does not take the risk, will not win the life.
This struggle, nevertheless, can be won on the long run, because the principled justice is on
our side. Since Trianon, the double measure has been applied, and is still applied even today
against us. But this unethical realpolitik cannot be justified. This procedure is hypocritical and
pharisaic. They speak about representational democracy, social justice and equality of rights,
but in practice they apply the selfish and value-denying policy of the crude realpolitik against
the Hungarian people. As a consequence of Trianon, the Hungarian people perishes, the