The Origins of the Overclass

The Origins of the Overclass

By Steve Kangas

The wealthy have always used many methods to accumulate wealth, but it was not until the mid-1970s that these methods coalesced into a superbly organized, cohesive and efficient machine. After 1975, it became greater than the sum of its parts, a smooth flowing organization of advocacy groups, lobbyists, think tanks, conservative foundations, and PR firms that hurtled the richest 1 percent into the stratosphere.

The origins of this machine, interestingly enough, can be traced back to the CIA. This is not to say the machine is a formal CIA operation, complete with code name and signed documents. (Although such evidence may yet surface — and previously unthinkable domestic operations such as MK-ULTRA, CHAOS and MOCKINGBIRD show this to be a distinct possibility.) But what we do know already indicts the CIA strongly enough. Its principle creators were Irving Kristol, Paul Weyrich, William Simon, Richard Mellon Scaife, Frank Shakespeare, William F. Buckley, Jr., the Rockefeller family, and more. Almost all the machine’s creators had CIA backgrounds.

During the 1970s, these men would take the propaganda and operational techniques they had learned in the Cold War and apply them to the Class War. Therefore it is no surprise that the American version of the machine bears an uncanny resemblance to the foreign versions designed to fight communism. The CIA’s expert and comprehensive organization of the business class would succeed beyond their wildest dreams. In 1975, the richest 1 percent owned 22 percent of America’s wealth. By 1992, they would nearly double that, to 42 percent — the highest level of inequality in the 20th century.

How did this alliance start? The CIA has always recruited the nation’s elite: millionaire businessmen, Wall Street brokers, members of the national news media, and Ivy League scholars. During World War II, General “Wild Bill” Donovan became chief of the Office of Strategic Services (OSS), the forerunner of the CIA. Donovan recruited so exclusively from the nation’s rich and powerful that members eventually came to joke that “OSS” stood for “Oh, so social!”

Another early elite was Allen Dulles, who served as Director of the CIA from 1953 to 1961. Dulles was a senior partner at the Wall Street firm of Sullivan and Cromwell, which represented the Rockefeller empire and other mammoth trusts, corporations and cartels. He was also a board member of the J. Henry Schroeder Bank, with offices in Wall Street, London, Zurich and Hamburg. His financial interests across the world would become a conflict of interest when he became head of the CIA. Like Donavan, he would recruit exclusively from society’s elite.

By the 1950s, the CIA had riddled the nation’s businesses, media and universities with tens of thousands of part-time, on-call operatives. Their employment with the agency took a variety of forms, which included:

  • Leaving one’s profession to work for the CIA in a formal, official capacity.
  • Staying in one’s profession, using the job as cover for CIA activity. This undercover activity could be full-time, part-time, or on-call.
  • Staying in one’s profession, occasionally passing along information useful to the CIA.
  • Passing through the revolving door that has always existed between the agency and the business world.

Historically, the CIA and society’s elite have been one and the same people. This means that their interests and goals are one and the same as well. Perhaps the most frequent description of the intelligence community is the “old boy network,” where members socialize, talk shop, conduct business and tap each other for favors well outside the formal halls of government.

Many common traits made it inevitable that the CIA and Corporate America would become allies. Both share an intense dislike of democracy, and feel they should be liberated from democratic regulations and oversight. Both share a culture of secrecy, either hiding their actions from the American public or lying about them to present the best public image. And both are in a perfect position to help each other.

How? International businesses give CIA agents cover, secret funding, top-quality resources and important contacts in foreign lands. In return, the CIA gives corporations billion-dollar federal contracts (for spy planes, satellites and other hi-tech spycraft). Businessmen also enjoy the romantic thrill of participating in spy operations. The CIA also gives businesses a certain amount of protection and privacy from the media and government watchdogs, under the guise of “national security.” Finally, the CIA helps American corporations remain dominant in foreign markets, by overthrowing governments hostile to unregulated capitalism and installing puppet regimes whose policies favor American corporations at the expense of their people.

The CIA’s alliance with the elite turned out to be an unholy one. Each enabled the other to rise above the law. Indeed, a review of the CIA’s history is one of such crime and atrocity that no one can reasonably defend it, even in the name of anticommunism. Before reviewing this alliance in detail, it is useful to know the CIA’s history of atrocity first.

The Crimes of the CIA

 

During World War II, the OSS actively engaged in propaganda, sabotage and countless other dirty tricks. After the war, and even after the CIA was created in 1947, the American intelligence community reverted to harmless information gathering and analysis, thinking that the danger to national security had passed. That changed in 1948 with the emergence of the Cold War. In that year, the CIA recreated its covert action wing, innocuously called the Office of Policy Coordination. Its first director was Wall Street lawyer Frank Wisner. According to its secret charter, its responsibilities included

    propaganda, economic warfare, preventive direct action, including sabotage, antisabotage, demolition and evacuation procedures; subversion against hostile states, including assistance to underground resistance groups, and support of indigenous anti-communist elements in threatened countries of the free world.

By 1953, the dirty tricks department of the CIA had grown to 7,200 personnel and commanded 74 percent of the CIA’s total budget. The following quotes describe the culture of lawlessness that pervaded the CIA:

Stanley Lovell, a CIA recruiter for “Wild Bill” Donovan:

    “What I have to do is to stimulate the Peck’s Bad Boy beneath the surface of every American scientist and say to him, ‘Throw all your normal law-abiding concepts out the window. Here’s a chance to raise merry hell. Come help me raise it.’” (1)

George Hunter White, writing of his CIA escapades:

    “I toiled wholeheartedly in the vineyards because it was fun, fun, fun… Where else could a red-blooded American boy lie, kill, cheat, steal, rape and pillage with the sanction and blessing of the all-highest?” (2)

A retired CIA agency caseworker with twenty years experience: “I never gave a thought to legality or morality. Frankly, I did what worked.”

Blessed with secrecy and lack of congressional oversight, CIA operations became corrupt almost immediately. Using propaganda stations like Voice of America and Radio Free Europe, the CIA felt justified in manipulating the public for its own good. The broadcasts were so patently false that for a time it was illegal to publish transcripts of them in the U.S. This was a classic case of a powerful organization deciding what was best for the people, and then abusing the powers it had helped itself to.

During the 40s and 50s, most of the public was unaware of what the CIA was doing. Those who knew thought they were fighting the good fight against communism, like James Bond. However, they could not keep their actions secret forever, and by the 60s and 70s, Americans began learning about the agency’s crimes and atrocities. (3) It turns out the CIA has:

  • Corrupted democratic elections in Greece, Italy and dozens of other nations;
  • Been involved to varying degrees in at least 35 assassination plots against foreign heads of state or prominent political leaders. Successful assassinations include democratically elected leaders like Salvador Allende (Chile) and Patrice Lumumba (Belgian Congo); also CIA-created dictators like Rafael Trujillo (Dominican Republic) and Ngo Dinh Diem (South Vietnam); and popular political leaders like Che Guevara. Unsuccessful attempts range from Fidel Castro to Charles De Gaulle.
  • Helped launch military coups that toppled democratic governments, replacing them with brutal dictatorshipsor juntas. The list of overthrown democratic leaders includes Mossadegh (Iran, 1953), Arbenz (Guatemala, 1954), Velasco and Arosemena (Ecuador, 1961, 1963), Bosch (Dominican Republic, 1963), Goulart (Brazil, 1964), Sukarno (Indonesia, 1965), Papandreou (Greece, 1965-67), Allende (Chile, 1973), and dozens of others.
  • Undermined the governments of Australia, Guyana, Cambodia, Jamaica and more;
  • Supported murderous dictators like General Pinochet (Chile), the Shah of Iran, Ferdinand Marcos (Phillipines), “Papa Doc” and “Baby Doc” Duvalier (Haiti), General Noriega (Panama), Mobutu Sese Seko (Ziare), the “reign of the colonels” (Greece), and more;
  • Created, trained and supported death squads and secret police forces that tortured and murdered hundreds of thousands of civilians, leftists and political opponents, in Guatemala, Honduras, El Salvador, Haiti, Bolivia, Cuba, Mexico, Uruguay, Brazil, Chile, Vietnam, Cambodia, Thailand, Iran, Turkey, Angola and others;
  • Helped run the “School of the Americas” at Fort Benning, Georgia, which trains Latin American military officers how to overthrow democratic governments. Subjects include the use of torture, interrogation and murder;
  • Used Michigan State “professors” to train Diem’s secret police in torture;
  • Conducted economic sabotage, including ruining crops, disrupting industry, sinking ships and creating food shortages;
  • Paved the way for the massacre of 200,000 in East Timor, 500,000 in Indonesia and one to two million in Cambodia;
  • Launched secret or illegal military actions or wars in Nicaragua, Angola, Cuba, Laos and Indochina;
  • Planted false stories in the local media;
  • Framed political opponents for crimes, atrocities, political statements and embarrassments that they did not commit;
  • Spied on thousands of American citizens, in defiance of Congressional law;
  • Smuggled Nazi war criminals and weapon scientists into the U.S., unpunished, for their use in the Cold War;
  • Created organizations like the World Anti-Communist League, which became filled with ex-Nazis, Nazi sympathizers, Italian terrorists, Japanese fascists, racist Afrikaaners, Latin American death squad leaders, CIA agents and other extreme right-wing militants;
  • Conducted Operation MK-ULTRA, a mind-control experiment that gave LSD and other drugs to Americans against their will or without their knowledge, causing some to commit suicide;
  • Penetrated and disrupted student antiwar organizations;
  • Kept friendly and extensive working relations with the Mafia;
  • Actively traded in drugs around the world since the 1950s to fund its operations. The Contra/crack scandal is only the tip of the iceberg –- other notorious examples include Southeast Asia’s Golden Triangle and Noreiga’s Panama.
  • Had their fingerprints all over the assassinations of John F. Kennedy, Robert F. Kennedy, Martin Luther King, Jr., and Malcom X. Even if the CIA is not responsible for these killings, the sheer amount of CIA involvement in these cases demands answers;
  • And then routinely lied to Congress about all of the above.

The Association for Responsible Dissent estimates that by 1987, 6 million people had died as a result of CIA covert operations. (4) Former State Department official William Blum correctly calls this an “American Holocaust.”

We should note that the CIA gets away with this because it is not accountable to democratic government. Former CIA officer Philip Agee put it best: “The CIA is the President’s secret army.” Prior to 1975, the agency answered only to the President (creating all the usual problems of authoritarianism). And because the CIA’s activities were secret, the President rarely had to worry about public criticism and pressure. After the 1975 Church hearings, Congress tried to create congressional oversight of the CIA, but this has failed miserably. One reason is that the congressional oversight committee is a sham, filled with Cold Warriors, conservatives, businessmen, and even ex-CIA personnel.

The Business Origins of CIA Crimes

 

Although many people think that the CIA’s primary mission during the Cold War was to “deter communism,” Noam Chomksy correctly points out that its real mission was “deterring democracy.” From corrupting elections to overthrowing democratic governments, from assassinating elected leaders to installing murderous dictators, the CIA has virtually always replaced democracy with dictatorship. It didn’t help that the CIA was run by businessmen, whose hostility towards democracy is legendary. The reason they overthrew so many democracies is because the people usually voted for policies that multi-national corporations didn’t like: land reform, strong labor unions, nationalization of their industries, and greater regulation protecting workers, consumers and the environment.

So the CIA’s greatest “successes” were usually more pro-corporate than anti-communist. Citing a communist threat, the CIA helped overthrow the democratically elected Mohammed Mussadegh government in Iran in 1953. But there was no communist threat — the Soviets stood back and watched the coup from afar. What really happened was that Mussadegh threatened to nationalize British and American oil companies in Iran. Consequently, the CIA and MI6 toppled Mussadegh and replaced him with a puppet government, headed by the Shah of Iran and his murderous secret police, SAVAK. The reason why the Ayatollah Khomeini and his revolutionaries took 52 Americans hostage in Tehran in 1979 was because the CIA had helped SAVAK torture and murder their people.

Another “success” was the CIA’s overthrow of the democratically elected government of Jacabo Arbenz in Guatemala in 1954. Again, there was no communist threat. The real threat was to Guatemala’s United Fruit Company, a Rockefeller-owned firm whose stockholders included CIA Director Allen Dulles. Arbenz threatened to nationalize the company, albeit with generous compensation. In response, the CIA initiated a coup that overthrew Arbenz and installed the murderous dictator Castillo Armas. For four decades, CIA-backed dicatators would torture and murder hundreds of thousands of leftists, union members and others who would fight for a more equitable distribution of the country’s resources.

Another “success” story was Chile. In 1973, the country’s democratically elected leader, Salvadore Allende, nationalized foreign-owned interests, like Chile’s lucrative copper mines and telephone system. International Telephone & Telegraph (ITT) offered the CIA $1 million to overthrow Allende — which the CIA allegedly refused — but paid $350,000 to his political opponents. The CIA responded with a coup that murdered Allende and replaced him with a brutal tyrant, General Augusto Pinochet. Pinochet tortured and murdered thousands of leftists, union members and political opponents as economists trained at the University of Chicago under Milton Friedman installed a “free market” economy. Since then, income inequality has soared higher in Chile than anywhere else in Latin America.

Even when the communist threat was real, the CIA first and foremost took care of the elite. In testimony before Congress in the early 50s, it artificially inflated Soviet military capabilities. A notorious example was the “bomber gap” that later turned out to be grossly exaggerated. Another was “Team B,” a group of hawkish CIA analysts who seriously distorted Soviet military data. These scare tactics worked. Congress awarded giant defense contracts to the U.S. military-industrial complex.

And not even the fall of the Soviet Union and the demise of American defense contracts have stopped the CIA from serving the elite. Journalist Robert Dreyfuss writes:

    Since the end of the Cold War, Washington has been abuzz with talk about using the CIA for economic espionage. Stripped of euphemism, economic espionage simply means that American spies would target foreign companies, such as Toyota, Nissan and Honda, and then covertly pass stolen trade secrets and technology to U.S. corporate executives. (5)

If this isn’t bad enough, a worse problem arises in that the CIA doesn’t hand over this technology to every American auto-related company, but only the Big Three: Ford, Chrysler and General Motors.

In a 1975 interview, Ex-CIA agent Philip Agee summed up his personal observations of the agency:

    To the people who work for it, the CIA is known as The Company. The Big Business mentality pervades everything. Agents, for instance, are called assets. The man in charge of the United Kingdom desk is said to have the “U.K. account”…American multinational corporations have built up colossal interests all over the world, and you can bet your ass that wherever you find U. S. business interests, you also find the CIA… The multinational corporations want a peaceful status quo in countries where they have investments, because that gives them undisturbed access to cheap raw materials, cheap labor and stable markets for their finished goods. The status quo suits bankers, because their money remains secure and multiplies. And, of course, the status quo suits the small ruling groups the CIA supports abroad, because all they want is to keep themselves on top of the socioeconomic pyramid and the majority of their people on the bottom. But do you realize what being on the bottom means in most parts of the world? Ignorance, poverty, often early death by starvation or disease…

Remember, the CIA is an instrument of the President; it only carries out policy. And, like everyone else, the President has to respond to forces in the society he’s trying to lead, right? In America, the most powerful force is Big Business, and American Big Business has a vested interest in the Cold War. (6)

Domestic Recruitment

The CIA had no trouble recruiting elites who sought a more exciting life. Between 1948 and 1959, more than 40,000 American individuals and companies acted as sources for the U.S. intelligence community. (7) Let’s look at each area of recruitment, and see how they enabled the CIA to conduct its crimes:

Big Business

 

The CIA co-opted big business right from the start, beginning with the most famous billionaire of the time: Howard Hughes. Hughes had inherited his father’s million-dollar tool and die company at age 19. Anxious to expand his fortune, he made a conscientious decision “to go where the money is” — namely, government. With a few well-placed bribes, Hughes secured defense contracts to build military planes. The result was the Hughes Aircraft company. By 1940, he had also acquired a controlling interest in Trans World Airlines. His government connections and international airline soon caught the attention of the CIA, and the two began a lifelong relationship. Hughes, whom the CIA dubbed “The Stockbroker,” became the agency’s largest contractor. Not only did he let the CIA use his business firms as fronts, but he also funded countless CIA operations. Perhaps the most notorious was Operation Jennifer, an allegedly failed attempt to recover nuclear codes from a sunken Soviet submarine. Hughes’ right-hand security man, Robert Maheu, was a CIA agent who at one time represented the CIA in negotiations with the Mafia to assassinate Fidel Castro.

The CIA’s contacts with big business quickly spread. The agency showed a preference for international companies, public relations firms, media companies, law offices, banks, financiers and stockbrokers. The CIA didn’t limit its activities to recruiting businessmen; sometimes the CIA bought or created entire companies outright. One benefit of co-opting big business was that the CIA was able to create a secret source of funds other than from government. With stock portfolios multiplying their profits, it’s impossible now to say how flush the CIA really is. If Congress ever cut off funds for a mission, the business fraternity could easily replace them, either by donations or even setting up profitable businesses in the target country. In fact, this is precisely what happened during the Iran/Contra scandal.

By allying itself with the business community, the CIA received the funds and ability it needed to remove itself from democratic control.

The Media

 

Journalism is a perfect cover for CIA agents. People talk freely to journalists, and few think suspiciously of a journalist aggressively searching for information. Journalists also have power, influence and clout. Not surprisingly, the CIA began a mission in the late 1940s to recruit American journalists on a wide scale, a mission it dubbed Operation MOCKINGBIRD. The agency wanted these journalists not only to relay any sensitive information they discovered, but also to write anti-communist, pro-capitalist propaganda when needed.

The instigators of MOCKINGBIRD were Frank Wisner, Allan Dulles, Richard Helms and Philip Graham. Graham was the husband of Katherine Graham, today’s publisher of the Washington Post. In fact, it was the Post’s ties to the CIA that allowed it to grow so quickly after the war, both in readership and influence. (8)

MOCKINGBIRD was extraordinarily successful. In no time, the agency had recruited at least 25 media organizations to disseminate CIA propaganda. At least 400 journalists would eventually join the CIA payroll, according to the CIA’s testimony before a stunned Church Committee in 1975. (The committee felt the true number was considerably higher.) The names of those recruited reads like a Who’s Who of journalism:

  • Philip and Katharine Graham (Publishers, Washington Post)
  • William Paley (President, CBS)
  • Henry Luce (Publisher, Time and Life magazine)
  • Arthur Hays Sulzberger (Publisher, N.Y. Times)
  • Jerry O’Leary (Washington Star)
  • Hal Hendrix (Pulitzer Prize winner, Miami News)
  • Barry Bingham Sr., (Louisville Courier-Journal)
  • James Copley (Copley News Services)
  • Joseph Harrison (Editor, Christian Science Monitor)
  • C.D. Jackson (Fortune)
  • Walter Pincus (Reporter, Washington Post)
  • ABC
  • NBC
  • Associated Press
  • United Press International
  • Reuters
  • Hearst Newspapers
  • Scripps-Howard
  • Newsweek magazine
  • Mutual Broadcasting System
  • Miami Herald
  • Old Saturday Evening Post
  • New York Herald-Tribune

Perhaps no newspaper is more important to the CIA than the Washington Post, one of the nation’s most right-wing dailies. Its location in the nation’s capitol enables the paper to maintain valuable personal contacts with leading intelligence, political and business figures. Unlike other newspapers, the Post operates its own bureaus around the world, rather than relying on AP wire services. Owner Philip Graham was a military intelligence officer in World War II, and later became close friends with CIA figures like Frank Wisner, Allen Dulles, Desmond FitzGerald and Richard Helms. He inherited the Post by marrying Katherine Graham, whose father owned it.

After Philip’s suicide in 1963, Katharine Graham took over the Post. Seduced by her husband’s world of government and espionage, she expanded her newspaper’s relationship with the CIA. In a 1988 speech before CIA officials at Langley, Virginia, she stated:

    We live in a dirty and dangerous world. There are some things that the general public does not need to know and shouldn’t. I believe democracy flourishes when the government can take legitimate steps to keep its secrets and when the press can decide whether to print what it knows.

This quote has since become a classic among CIA critics for its belittlement of democracy and its admission that there is a political agenda behind the Post’s headlines.

Ben Bradlee was the Post’s managing editor during most of the Cold War. He worked in the U.S. Paris embassy from 1951 to 1953, where he followed orders by the CIA station chief to place propaganda in the European press. (9) Most Americans incorrectly believe that Bradlee personifies the liberal slant of the Post, given his role in publishing the Pentagon Papers and the Watergate investigations. But neither of these two incidents are what they seem. The Post merely published the Pentagon Papers after The New York Times already had, because it wanted to appear competitive. As for Watergate, we’ll examine the CIA’s reasons for wanting to bring down Nixon in a moment. Someone once asked Bradlee: “Does it irk you when The Washington Post is made out to be a bastion of slanted liberal thinkers instead of champion journalists just because of Watergate?” Bradlee responded: “Damn right it does!” (10)

It would be impossible to elaborate in this short space even the most important examples of the CIA/media alliance. Sig Mickelson was a CIA asset the entire time he was president of CBS News from 1954 to 1961. Later he went on to become president of Radio Free Europe and Radio Liberty, two major outlets of CIA propaganda.

The CIA also secretly bought or created its own media companies. It owned 40 percent of the Rome Daily American at a time when communists were threatening to win the Italian elections. Worse, the CIA has bought many domestic media companies. A prime example is Capital Cities, created in 1954 by CIA businessman William Casey (who would later become Reagan’s CIA director). Another founder was Lowell Thomas, a close friend and business contact with CIA Director Allen Dulles. Another founder was CIA businessman Thomas Dewey. By 1985, Capital Cities had grown so powerful that it was able to buy an entire TV network: ABC.

For those who believe in “separation of press and state,” the very idea that the CIA has secret propaganda outlets throughout the media is appalling. The reason why America was so oblivious to CIA crimes in the 40s and 50s was because the media willingly complied with the agency. Even today, when the immorality of the CIA should be an open-and-shut case, “debate” about the issue rages in the media. Here is but one example:

In 1996, The San Jose Mercury News published an investigative report suggesting that the CIA had sold crack in Los Angeles to fund the Contra war in Central America. A month later, three of the CIA’s most important media allies — The Washington Post, The New York Times and The Los Angeles Times — immediately leveled their guns at the Mercury report and blasted away in an attempt to discredit it. Who wrote the Post article? Walter Pincus, longtime CIA journalist. The dangers here are obvious.

Academia

 

By the early 50s, CIA Director Allen Dulles had staffed the CIA almost exclusively with Ivy League graduates, especially from Yale. (A disproportionate number of CIA figures, like George Bush, come from Yale’s “Skull and Crossbones” Society.) CIA recruiters also approached thousands of other professors to work in place at their universities on a part-time, contract basis. Not stopping at recruiting scholars, the agency would go on to create several departments at elite universities, including Harvard’s Russian Research Center and the Center for International Studies at MIT.

Although most academics were supportive of the CIA in the 50s, most were unaware of its abuses. In the 60s, academia would become outraged to learn that anti-communist organizations like the National Student Association were actually creations of the CIA. The most audacious CIA front was the Congress for Cultural Freedom, an organization that attracted liberal, freethinking artists and intellectuals who nonetheless deplored communism.

By the late 60s and 70s, growing reports of CIA crimes and atrocities had deeply alienated academia. Scholars were further troubled to learn that the CIA had penetrated and disrupted student antiwar groups. Unlike business and the media, academia overwhelmingly denounced the CIA after the Vietnam era. This eventually forced the CIA to turn to new places to find their analysts and scholars. The most important source was the conservative think-tank movement, which it helped to create. More on this later.

The Roman Catholic Church

 

Although the CIA began as a mostly Protestant organization, Roman Catholics quickly came to dominate the new covert-action wing in 1948. All were staunchly conservative, fiercely anti-communist and socially elite. Just a few of the many Catholic operatives included future CIA directors William Colby, William Casey, and John McCone. Another well-known personality from this period was William F. Buckley, Jr., editor of the National Review and gadfly host of TV’s Firing Line. Buckley, it turns out, served as a CIA agent in Mexico City, and his experiences there served as fodder for his Blackford Oakes spy novels.

There were several reasons for this influx of Catholic elites. First, Wisner (himself a Wall Street lawyer) had an extensive and glamorous circle of friends to recruit from. Second, Italy was in constant crisis in the 1940s, both during World War II and after. Throughout this troubled period, the American intelligence community’s greatest ally in Italy was the Roman Catholic Church.

The Roman Catholic Church, of course, is one of the most anti-communist organizations in the world. The Marxist doctrine of atheism threatens Catholic theology, and its equality threatens the Church’s strict tradition of hierarchy and authoritarianism. When Hitler invaded Communist Russia, the Vatican openly approved. Jesuit Michael Serafian wrote: “It cannot be denied that [Pope] Pius XII’s closest advisors for some time regarded Hitler’s armoured divisions as the right hand of God.” (11)

But Hitler persecuted Catholics as well, and ultimately drove the Church to the Americans. In 1943, the Vatican reached a secret agreement with OSS Chief Donovan — himself a devout Catholic — to let the Holy See become the center of Allied spy operations in Italy. Donovan considered the Church to be one of his prize intelligence assets, given its global power, membership and contacts. He cultivated this alliance by sending America’s most prestigious Catholics to the Vatican to establish rapport and forge an alliance.

After the war, half of Europe lay under Communist control, and the Italian communist party threatened to win the 1948 elections. The prospect of communism ruling over the heart of Catholicism terrified the Vatican. Once again, American intelligence gathered their most prestigious Catholics to strengthen ties with the Vatican. Because this was the first mission of the new covert action division, the American Catholic agents acquired positions of power early on, and would dominate covert operations for the rest of the Cold War.

At a public level, the U.S. government sunk $350 million in social and military aid into Italy to sway the vote. On a secret level, Wisner spent $10 million in black budget funds to steal the elections. This included disseminating propaganda, beating up left-wing politicians, intimidating voters and disrupting leftist parties. The dirty tricks worked — the Communists lost, and the Catholic Americans’ success permanently secured their power within the CIA.

The Knights of Malta (12)

The Roman Catholic Church did not forget the American agents who had saved them from both Nazism and Communism. It rewarded them by making them Knights of Malta, or members of the Sovereign Military Order of Malta (SMOM).

SMOM is one of the oldest and most elite religious orders in the Catholic Church. Until recently, it limited its membership to Italians and foreign heads of state. In 1927, however, an exception was made for the United States, given its emerging status as a world power. SMOM opened an American branch, awarding knighthood or damehood to several American Catholic business tycoons. This group was so conservative that one, John Raskob, the Chairman of General Motors, actually became involved in an aborted military plot to remove Franklin Roosevelt from the White House. SMOM has also been embarrassed by knighting or giving awards to countless people who later turned out to be Nazi war criminals. This is the sort of culture that thrives within the leadership of SMOM.

Officially, the Knights of Malta are a global charity organization. But beginning in the 1940s, knighthood was granted to countless CIA agents, and the organization has become a front for intelligence operations. SMOM is ideal for this kind of activity, because it is recognized as the world’s only landless sovereignty, and members enjoy diplomatic immunity. This allows agents and supplies to pass through customs without interference from the host country. Such privileges enabled the Knights of Malta to become a major supplier of “humanitarian aid” to the Contras during their war in the 1980s.

A partial list of the Knights and Dames of Malta reads like a Who’s Who of American Catholicism:

  • William Casey – CIA Director.
  • John McCone – CIA Director.
  • William Colby – CIA Director.
  • William Donovan – OSS Director. Donovan was given an especially prestigious form of knighthood that has only been given to a hundred other men in history.
  • Frank Shakespeare – Director of such propaganda organizations as the U.S. Information Agency, Radio Free Europe and Radio Liberty. Also executive vice-president of CBS-TV and vice-chairman of RKO General Inc. He is currently chairman of the board of trustees at the Heritage Foundation, a right-wing think tank.
  • William Simon – Treasury Secretary under President Nixon. In the private sector, he has become one of America’s 400 richest individuals by working in international finance. Today he is the President of the John M. Olin Foundation, a major funder of right-wing think tanks.
  • William F. Buckley, Jr. – CIA agent, conservative pundit and mass media personality.
  • James Buckley – William’s brother, head of Radio Free Europe and Radio Liberty.
  • Clare Boothe Luce – The grand dame of the Cold War was also a Dame of Malta. She was a popular playwright and the wife
  • of the publishing tycoon Henry Luce, who cofounded Time magazine.
  • Francis X Stankard – CEO of the international division of Chase Manhattan Bank, a Rockefeller institution. (Nelson Rockefeller was also a major CIA figure.)
  • John Farrell – President, U.S. Steel
  • Lee Iacocca – Chairman, General Motors
  • William S. Schreyer – Chairman, Merrill Lynch.
  • Richard R. Shinn – Chairman, Metropolitan Life Insurance Company.
  • Joseph Kennedy – Founder of the Kennedy empire.
  • Baron Hilton – Owner, Hilton Hotel chain.
  • Patrick J. Frawley Jr. – Heir, Schick razor fortune. Frawley is a famous funder of right-wing Catholic causes, such as the Christian Anti-Communist Crusade.
  • Ralph Abplanalp – Aerosol magnate.
  • Martin F. Shea – Executive vice president of Morgan Guaranty Trust.
  • Joseph Brennan – Chairman of the executive committee of the Emigrant Savings Bank of New York.
  • J. Peter Grace – President, W.R. Grace Company. He
  • was a key figure in Operation Paperclip, which brought Nazi scientists and spies to the U.S. Many were war criminals whose atrocities were excused in their service to the CIA.
  • Thomas Bolan – Of Saxe, Bacon and Bolan, the law firm of Senator McCarthy’s deceased aide Roy Cohn.
  • Bowie Kuhn – Baseball Comissioner
  • Cardinal John O’Connor – Extreme right-wing leader among American Catholics, and fervent abortion opponent.
  • Cardinal Francis Spellman – The “American Pope” was at one time the most powerful Catholic in America, an arch-conservative and a rabid anti-communist.
  • Cardinal Bernard Law – One of the highest-ranking conservatives in the American church.
  • Alexander Haig – Secretary of State under President Reagan.
  • Admiral James D. Watkins – Hard-line chief of naval operations under President Reagan.
    Jeremy Denton – Senator (R–Al).
  • Pete Domenici – Senator (R-New Mexico).
  • Walter J. Hickel - Governor of Alaska and secretary of the interior.

When this group gets together, obviously, the topics are spying, business and politics.

The CIA has also used other religious and charity organizations as fronts. For example, John F. Kennedy — another anticommunist Roman Catholic who greatly expanded covert operations — created the U.S. Peace Corps to serve as cover for CIA operatives. The CIA has also made extensive use of missionaries, with the blessings of many right-wing, anticommunist Christian denominations.

But the World Grows Wise…

 

It was only a matter of time before other nations caught on to these fronts. They learned that when the CIA comes to their countries to commit their crimes and atrocities, they come disguised as American journalists, businessmen, missionaries and charity volunteers. Unfortunately, foreigners are now targeting these professions as hostile. In Lebanon, terrorists held U.S. journalist Terry Anderson hostage for nearly seven years, on the not unreasonable assumption that he was a spy. Whether or not this was true is beside the point. The CIA has put all Americans abroad at risk, whether they are CIA agents or not. In hearings before the Senate in 1996, many organizations urged Congress to stop using their professions as CIA cover. Don Argue of the National Association of Evangelicals testified: “Such use of missionary agents for covert activities by the CIA would be unethical and immoral.” (13)

From the Cold War to the Class War

 

As noted above, academia was the first major institution to denounce the crimes of the CIA. Why? One reason is that scholars conduct their own extensive research into world affairs, so naturally they were the first to learn the truth. This is the main reason why protest against the Vietnam War and the CIA erupted first among students on the nation’s campuses. By the end of the Vietnam War, the CIA had suffered a “brain drain” as its academic allies became its most articulate, passionate and eloquent critics.

The social revolutions of the 60s terrified the CIA. James Jesus Angleton, chief of counter-intelligence and a truly paranoid man, was convinced the Soviets had masterminded the entire antiwar movement. FBI Director J. Edgar Hoover shared his conviction. The CIA had always spied on student groups throughout the 60s, but in 1968 President Johnson dramatically stepped up the effort with Operation CHAOS. This initially called for 50 CIA agents to go undercover as student radicals, penetrate their antiwar organizations and root out the Russian spies who were causing the rebellion. Tellingly, they never found a single spy. The agents also began a campaign of wire-tapping, mail-opening, burglary, deception, intimidation and disruption against thousands of protesting American civilians.

By the time Operation CHAOS wound down in 1973, the CIA had spied on 7,000 Americans, 1,000 organizations and traded information on more than 300,000 persons with various law agencies. (14) When academia learned of this, its outrage grew.

The loss of academia was only the first blow for the CIA. Other disasters quickly followed; in the early 70s, the CIA was trying desperately to stave off a growing number of scandals. The first was Watergate.

The CIA’s fingerprints were all over Watergate. First, we should note the CIA had clear motives for helping oust Nixon. He was the ultimate “outsider,” a poor California Quaker who grew up feeling bitter resentment towards the elite “Eastern establishment.” Nixon, for all his arch-conservatism, was surprisingly liberal on economic issues, enfuriating businessmen with statements like “We are all Keynesians now.” He created a whole host of new agencies to regulate business, like the FDA, EPA and OSHA. He signed the Clean Air and Clean Water Acts, which forced businesses to clean up their toxic emissions. He imposed price controls to fight inflation, and took the nation fully off the gold standard. Nixon also strengthened affirmative action. Even his staffers were famously anti-elitist, like Kevin Philips, who would eventually write the bible on inequality during the 1980s, The Politics of Rich and Poor. Add to this Nixon’s withdrawal from Vietnam and Détente with China and the Soviet Union. Nixon and his Secretary of State, Henry Kissinger, had not only tried to remove control of foreign policy from the CIA, but had also taken measures to bring the CIA itself under control. Not surprisingly, Nixon and his CIA Director, Richard Helms, couldn’t stand each other. (Nixon fired him for failing to cover up for Watergate.) Clearly, Nixon was fighting at cross-purposes with the CIA and the nation’s elite.

As it turns out, the CIA had inside knowledge of Nixon’s dirty work. Nixon had created his own covert action team, “The Committee to Reelect the President,” more amusingly known by its acronym, CREEP. The team consisted of two CIA agents — E. Howard Hunt and James McCord — as well as former FBI agent G. Gordon Liddy. They also employed four Cubans with long CIA histories. In fact, a CIA front called the Mullen Company funded their activities, which ranged from disrupting Democratic campaigns to laundering Nixon’s illegal campaign contributions.

The CIA not only had intimate knowledge of Nixon’s crimes, but it also acted as though it wanted the world to know them. When the FBI began investigating Watergate, Nixon tried using the CIA to cover up for him. At first the CIA half-heartedly complied, telling the FBI that the investigation would endanger CIA operations in Mexico. But a few weeks later it gave the FBI a green light again to proceed again with their investigation.

Furthermore, Watergate was exposed by the CIA’s main newspaper in America, The Washington Post. One of the two journalists who investigated the scandal, Robert Woodward, had only recently become a journalist. Previously Woodward had worked as a Naval intelligence liaison to the White House, privy to some of the nation’s highest secrets. He would later write a sympathetic portrait of CIA Director Bill Casey in a book entitled Veil: The Secret Wars of the CIA. It was Woodward who personally knew and interviewed “Deep Throat,” the unnamed source who revealed inside information on Nixon’s activities. Many Watergate researchers consider one of Woodward’s old intelligence contacts to be a prime candidate for Deep Throat. (15)

Despite all the facts of CIA involvement, Woodward and Bernstein made virtually no mention of the CIA in their Watergate reporting. Even during Senate hearings on Watergate, the CIA somehow managed to stay out of the spotlight. In 1974, the House would clear the CIA of any involvement in Watergate.

The CIA was not as lucky in 1974, when the Senate held hearings on James Jesus Angleton’s illegal surveillance of American citizens. These disclosures resulted in his firing. But that was nothing compared to the 1975 Church Committee. This Senate investigation looked into virtually every type of CIA crime, from assassination to secret war to manipulating the domestic media. The “reforms” that resulted from these hearings were mostly cosmetic, but the details that emerged shattered the CIA’s reputation forever. Interestingly enough, the two Senators who held these hearings — Frank Church and Otis Pike — were both defeated for reelection, despite a 98 percent reelection rate for incumbents.

The CIA wasn’t the only conservative institution that found itself embattled in the early 70s. This was a bad time for conservatives everywhere. America had lost the war in Vietnam. U.S. corporations had to cope with the rise of OPEC. The anti-poverty programs of Roosevelt’s New Deal and Johnson’s Great Society were causing a major redistribution of wealth. And Nixon was making things worse with his own anti-poverty and regulatory programs. Between 1960 and 1973, these efforts cut poverty in half, from 22 to 11 percent. Meanwhile, between 1965 and 1976, the richest 1 percent had gone from owning 37 percent of America’s wealth to only 22 percent. (16)

At a 1973 Conference Board meeting of top American business leaders, executives declared: “We are fighting for our lives,” “We are fighting a delaying action,” and “If we don’t take action now, we will see our own demise. We will evolve into another social democracy.” (17)

The CIA to the rescue

 

In the mid-1970s, at this historic low point in American conservatism, the CIA began a major campaign to turn corporate fortunes around.

They did this in several ways. First, they helped create numerous foundations to finance their domestic operations. Even before 1973, the CIA had co-opted the most famous ones, like the Ford, Rockefeller and Carnegie Foundations. But after 1973, they created more. One of their most notorious recruits was billionaire Richard Mellon Scaife. During World War II, Scaife’s father served in the OSS, the forerunner of the CIA. By his mid-twenties, both of Scaife’s parents had died, and he inherited a fortune under four foundations: the Carthage Foundation, the Sarah Scaife Foundation, the Scaife Family Foundations and the Allegheny Foundation. In the early 1970s, Scaife was encouraged by CIA agent Frank Barnett to begin investing his fortune to fight the “Soviet menace.” (18) From 1973 to 1975, Scaife ran Forum World Features, a foreign news service used as a front to disseminate CIA propaganda around the world. Shortly afterwards he began donating millions to fund the New Right.

Scaife’s CIA roots are typical of those who head the new conservative foundations. By 1994 the most active were:

  • Lynde and Harry Bradley Foundation
  • Carthage Foundation
  • Earhart Foundation
  • Charles G. Koch
  • David H. Koch
  • Claude R. Lambe
  • Philip M. McKenna
  • J.M. Foundation
  • John M. Olin Foundation
  • Henry Salvatori Foundation
  • Sarah Scaife Foundation
  • Smith Richardson Foundation

Between 1992 and 1994, these foundations gave $210 million to conservative causes. Here is the breakdown of their donations:

  • $88.9 million for conservative scholarships;
  • $79.2 million to enhance a national infrastructure of think tanks and advocacy groups;
  • $16.3 million for alternative media outlets and watchdog groups;
  • $10.5 million for conservative pro-market law firms;
  • $9.3 million for regional and state think tanks and advocacy groups;
  • $5.4 million to “organizations working to transform the nations social views and giving practices of the nation’s religious and philanthropic leaders.” (19)

The political machine they built is broad and comprehensive, covering every aspect of the political fight. It includes right-wing departments and chairs in the nation’s top universities, think tanks, public relations firms, media companies, fake grassroots organizations that pressure Congress (irreverently known as “Astroturf” movements), “Roll-out-the-vote” machines, pollsters, fax networks, lobbyist organizations, economic seminars for the nation’s judges, and more. And because corporations are the richest sector of society, their greater financing overwhelms similar efforts by Democrats.

Besides creating foundations, the CIA helped organize the business community. There have always been special interest groups representing business, like the U.S. Chamber of Commerce and the National Association of Manufacturers, and the CIA has long been involved with them. However, after 1973, a spate of powerful new groups would come into existence, like the Business Roundtable and the Trilateral Commission. These organizations quickly became powerhouses in promoting the business agenda.

Their efforts clearly succeeded. With the 1975 SUN-PAC decision, corporations persuaded government to legalize corporate Political Action Committees (the lobbyist organizations that bribe our government). By 1992, corporations formed 67 percent of all PACs, and they donated 79 percent of all campaign contributions to political parties. (20) In two landmark elections — 1980 and 1994 — corporations gave heavily and one-sidedly to Republicans, turning one or both houses of Congress over to the GOP. Democratic incumbents were shocked by the threat of being rolled completely out of power, so they quietly shifted to the right on economic issues, even though they continued a public façade of liberalism. Corporations went ahead and donated to Democratic incumbents in all other elections, but only as long as they abandoned the interests of workers, consumers, minorities and the poor. As expected, the new pro-corporate Congress passed laws favoring the rich: between 1975 and 1992, the amount of national household wealth owned by the richest 1 percent soared from 22 to 42 percent. (21)

The CIA also helped create the conservative think tank movement. Prior to the 70s, think tanks spanned the political spectrum, with moderate think tanks receiving three times as much funding as conservative ones. At these early think tanks, scholars typically brainstormed for creative solutions to policy problems. This would all change after the rise of conservative foundations in the early 70s. The Heritage Foundation opened its doors in 1973, the recipient of $250,000 in seed money from the Coors Foundation. A flood of conservative think tanks followed shortly thereafter, and by 1980 they overwhelmed the scene. The new think tanks turned out to be little more than propaganda mills, rigging studies to “prove” that their corporate sponsors needed tax breaks, deregulation and other favors from government.

Of course, think-tank studies are useless without publicity, and here the CIA proved especially valuable. Using propaganda techniques it had perfected at the Voice of America and Radio Free Europe, the CIA and its allies turned American AM radio into a haven for conservative talk show hosts. Yes — Rush Limbaugh uses the same propaganda techniques that Muscovites once heard from Voice of America. The CIA has also developed countless other media outlets, like Capital Cities (which eventually bought ABC), major PR firms like Hill & Knowlton, and of course, all the Agency’s connections in the national news media. (22)

The following is a typical example of how the “New Media” operates. As most political observers know, the Republicans suffer from a “gender gap,” in which women prefer Democrats by huge majorities. This is, in fact, why Clinton has twice won the presidency. But, curiously enough, as the 90s progressed, conservative female pundits began popping up everywhere in the media. Hard-right pundits like Ann Coulter, Kellyanne Fitzpatrick, Laura Ingraham, Barbara Olson, Melinda Sidak, Anita Blair and Whitney Adams conditioned us to the idea of the conservative woman. This phenomenon was no accident. It turns out that Richard Mellon Scaife donated $450,000 over three years to the Independent Women’s Forum, a booking agency that heavily seeds such female conservative pundits into the media. (23)

Conclusion

The most obvious criticism of the New Overclass is that their political machine is undemocratic. Using subversive techniques once aimed at communists, and with all the money they ever need to succeed, the Overclass undemocratically controls our government, our media, and even a growing part of academia. These institutions in turn allow the Overclass to control the supposedly “free” market. It doesn’t win all the time, of course — witness Bill Clinton’s impeachment trial — but it does score an endless string of other victories elsewhere, all to the detriment of workers, consumers, women, minorities and the poor. We need to fight it with everything we’ve got.

Related links:

 

Myth: There’s no “vast right wing conspiracy” to get Clinton.

Myth: Conservative think tanks are the answer to liberal academia.

A Timeline of CIA Atrocities.

Return to Liberalism Resurgent
Endnotes:

 

1. Mind Manipulators, Scheflin and Opton. p.241.

2. Captain George White in a letter to Dr. Sidney Gottlieb.

3. All history concerning CIA intervention in foreign countries is summarized from William Blum’s encyclopedic work, Killing Hope: U.S. Military and CIA Interventions since World War II (Monroe, Maine: Common Courage Press, 1995). Sources for domestic CIA operations come from Jonathan Vankin and John Whalen’s The 60 Greatest Conspiracies of All Time (Secaucus, N.J.: Citadel Press, 1997). Information about CIA drug running can be found at http://www.magnet.ch/serendipity/cia/blum1.html and http://speech.csun.edu/ben/news/cia/index.html.

4. Coleman McCarthy, “The Consequences of Covert Tactics” Washington Post, December 13, 1987.

5. Robert Dreyfuss, “Company Spies,” Mother Jones. Website: http://www.mojones.com/mother_jones/MJ94/dreyfuss.html

6. Philip Agee: The Playboy Interview. Website: http://www.connix.com/~harry/agee.htm

7. Lara Shohet, “Intelligence, Academia and Industry,” The Final Report of the Snyder Commission, Edward Cheng and Diane C. Snyder, eds., (Princeton Unversity: The Woodrow Wilson School of Public and International Affairs, January 1997). Website: http://www.fas.org/irp/eprint/snyder/academia.htm.

8. Website: http://www.europa.com/~johnlf/cn/cn9-35.

9. Deborah Davis, Katharine the Great and the Washington Post, 2nd ed. (Bethesda MD: National Press, 1987)

10. “Forum for Ben Bradlee,” Watergate 25. Website: http://discuss.washingtonpost.com/zforum/97/bradlee.htm.

11. Lewy, Guenter, The Catholic Church and Nazi Germany (London and New York, 1964), pp. 249-250.

12. National Catholic Reporter, Jan 89, Mar 89, Apr 89, May 89, “Nazis, the Vatican and the CIA,” Covert Action Information Bulletin, Winter 1986, Number 25 Website: http://www.mosquitonet.com/~prewett/knightsofmaltalist.html.

13. Anthony Collings, “Journalists tell Senate they want no CIA ties,” CNN, July 18, 1996. Website: http://www.cnn.com/US/9607/18/spies.journalists/.

14. Morton Halperin, et al, eds., The Lawless State (New York: Penguin, 1976), p. 153.

15. Jim Hougan, Secret Agenda: Watergate, Deep Throat and the CIA.

16. Edward N. Wolff, “How the Pie is Sliced” The American Prospect no. 22 (Summer 1995), pp. 58-64. Website: http://epn.org/prospect/22/22wolf.html.

17. Quoted in Leonard Silk and David Vogel, Ethics and Profits (New York: Simon & Schuster, 1976), pp. 44-47.

18. Karen Rothmyer, “The man behind the mask,” Salon, April 7, 1998.

19. Study conducted by National Committee for Responsive Philanthropy, July 1997, as reported by the National Education Association. Website: http://www.nea.org/publiced/paycheck/paychkf.html.

20. Center for Responsive Politics, Washington D.C., 1993.

21. Wolff.

22. For CIA involvement in Capital Cities/ABC, see Dennis Mazzocco, Networks of Power (Boston: South End Press, 1994). For CIA involvement in the PR industry, see John Stauber and Sheldon Rampton, Toxic Sludge is Good for You! (Monroe, Maine: Common Courage Press, 1995), pp. 49-51,153,157,160-63.

23. Jonathon Broder and Murray Waas, [Untitled] Salon, April 20, 1998. Website: http://www.salonmag.com/news/1998/04/20news.html

LEADERLESS RESISTANCE

LEADERLESS RESISTANCE

by Louis Beam

The concept of Leaderless Resistance was proposed by Col. Ulius Louis Amoss, who was the founder of International Service of Information Incorporated, located in Baltimore, Maryland. Col. Amoss died more than fifteen years ago, but during his life was a tireless opponent of communism, as well as a skilled Intelligence Officer. Col. Amoss first wrote of Leaderless Resistance on April 17, 1962. His theories of organization were primarily directed against the threat of eventual Communist take-over in the United States. The present writer, with the benefit of having lived many years beyond Col. Amoss, has taken his theories and expounded upon them. Col. Amoss feared the Communists. This author fears the federal government. Communism now represents a threat to no one in the United States, while federal tyranny represents a threat to everyone . The writer has joyfully lived long enough to see the dying breaths of communism, but may, unhappily, remain long enough to see the last grasps of freedom in America.

In the hope that, somehow, America can still produce the brave sons and daughters necessary to fight off ever increasing persecution and oppression, this essay is offered. Frankly, it is too close to call at this point. Those who love liberty, and believe in freedom enough to fight for it are rare today, but within the bosom of every once great nation, there remains secreted, the pearls of former greatness. They are there. I have looked into their sparking eyes; sharing a brief moment in time with them as I passed through this life. Relished their friendship, endured their pain, and they mine. We are a band of brothers, native to the soil gaining strength one from another as we have rushed head long into a battle that all the weaker, timid men, say we can not win. Perhaps…but then again, perhaps we can. It’s not over till the last freedom fighter is buried or imprisoned, or the same happens to those who would destroy their freedom.

Barring any cataclysmic events, the struggle will yet go on for years. The passage of time will make it clear to even the more slow among us that the government is the foremost threat to the life, and liberty of the folk. The government will no doubt make today’s oppressiveness look like grade school work compared to what they have planned in the future. Meanwhile, there are those of us who continue to hope that somehow the few can do what the many have not. We are cognizant that before things get better they will certainly get worse as government shows a willingness to use ever more severe police state measures against dissidents. This changing situation makes it clear that those who oppose state repression must be prepared to alter, adapt, and modify their behavior, strategy, and tactics as circumstances warrant. Failure to consider new methods and implement them as necessary will make the government’s efforts at suppression uncomplicated. It is the duty of every patriot to make the tyrant’s life miserable. When one fails to do so he not only fails himself, but his people.

With this in mind, current methods of resistance to tyranny employed by those who love our race, culture, and heritage must pass a litmus test of soundness. Methods must be objectively measured as to their effectiveness, as well as to whether they make the government’s intention of repression more possible or more difficult. Those not working to aid our objectives must be discarded or the government benefits from our failure to do so.

As honest men who have banded together into groups or associations of a political or religious nature are falsely labeled “domestic terrorists” or “cultists” and suppressed, it will become necessary to consider other methods of organization–or as the case may very well call for: non-organization. One should keep in mind that it is not in the government’s interest to eliminate all groups. Some few must remain in order to perpetuate the smoke and mirrors vision for the masses that America is a “free democratic country” where dissent is allowed. Most organizations, however, that possess the potential for effective resistance will not be allowed to continue. Anyone who is so naive as to believe the most powerful government on earth will not crush any who pose a real threat to that power, should not be active, but rather, at home studying political history.

The question as to who is to be left alone and who is not, will be answered by how groups and individuals deal with several factors such as: avoidance of conspiracy plots, rejection of feeble minded malcontents, insistence upon quality of the participants, avoidance of all contact with the front men for the federals–the news media–and, finally, camouflage (which can be defined as the ability to blend in the public’s eye the more committed groups of resistance with mainstream “kosher” associations that are generally seen as harmless.) Primarily though, whether any organization is allowed to continue in the future will be a matter of how big a threat a group represents. Not a threat in terms of armed might or political ability, for there is none of either for the present, but rather, threat in terms of potentiality. It is potential the federals fear most. Whether that potential exists in an individual or group is incidental. The federals measure potential threat in terms of what might happen given a situation conducive to action on the part of a restive organization or individual. Accurate intelligence gathering allows them to assess the potential. Showing one’s hand before the bets are made, is a sure way to loose.

The movement for freedom is rapidly approaching the point where for many people, the option of belonging to a group will be nonexistent. For others, group membership will be a viable option for only the immediate future. Eventually, and perhaps much sooner than most believe possible, the price paid for membership will exceed any perceived benefit. But for now, some of the groups that do exist often serve a useful purpose either for the newcomer who can be indoctrinated into the ideology of the struggle, or for generating positive propaganda to reach potential freedom fighters. It is sure that, for the most part, this struggle is rapidly becoming a matter of individual action, each of its participants making a private decision in the quietness of his heart to resist: to resist by any means necessary. It is hard to know what others will do, for no man truly knows another man’s heart. It is enough to know what one himself will do. A great teacher once said “know thyself.” Few men really do, but let each of us, promise ourselves, not to go quietly to the fate our would-be masters have planned.

The concept of Leaderless Resistance is nothing less than a fundamental departure in theories of organization. The orthodox scheme of organization is diagrammatically represented by the pyramid, with the mass at the bottom and the leader at the top. This fundamental of organization is to be seen not only in armies, which are of course, the best illustration of the pyramid structure, with the mass of soldiery, the privates, at the bottom responsible to corporals who are in turn responsible to sergeants, and so on up the entire chain of command to the generals at the top. But the same structure is seen in corporations, ladies’ garden clubs and in our political system itself. This orthodox “pyramid” scheme of organization is to be seen basically in all existing political, social and religious structures in the world today from the Federal government to the Roman Catholic Church. The Constitution of the United States, in the wisdom of the Founders, tried to sublimate the essential dictatorial nature of pyramidal organization by dividing authority into three: executive, legislative and judicial. But the pyramid remains essentially untouched.

This scheme of organization, the pyramid, is however, not only useless, but extremely dangerous for the participants when it is utilized in a resistance movement against state tyranny. Especially is this so in technologically advanced societies where electronic surveillance can often penetrate the structure revealing its chain of command. Experience has revealed over and over again that anti-state, political organizations utilizing this method of command and control are easy prey for government infiltration, entrapment, and destruction of the personnel involved. This has been seen repeatedly in the United States where pro-government infiltrators or agent provocateurs weasel their way into patriotic groups and destroy them from within.

In the pyramid type of organization, an infiltrator can destroy anything which is beneath his level of infiltration and often those above him as well. If the traitor has infiltrated at the top, then the entire organization from the top down is compromised and may be traduced at will.

An alternative to the pyramid type of organization is the cell system. In the past, many political groups (both right and left) have used the cell system to further their objectives. Two examples will suffice. During the American Revolution “committees of correspondence” were formed throughout the Thirteen colonies.

Their purpose was to subvert the government and thereby aid the cause of independence. The “Sons of Liberty”, who made a name for themselves dumping government taxed tea into the harbor at Boston, were the action arm of the committees of correspondence. Each committee was a secret cell that operated totally independently of the other cells. Information on the government was passed from committee to committee, from colony to colony, and then acted upon on a local basis. Yet even in these bygone days of poor communication, of weeks to months for a letter to be delivered, the committees without any central direction whatsoever, were remarkable similar in tactics employed to resist government tyranny. It was, as the first American patriots knew, totally unnecessary for anyone to give an order for anything. Information was made available to each committee, and each committee acted as it saw fit. A recent example of the cell system taken from the left wing of politics are the Communists. The Communist, in order to get around the obvious problems involved in pyramidal organization, developed to an art the cell system. They had numerous independent cells which operated completely isolated from one another and particularly with no knowledge of each other, but were orchestrated together by a central headquarters. For instance, during World War II, in Washington, it is known that there were at least six secret Communist cells operating at high levels in the United States government (plus all the open Communists who were protected and promoted by President Roosevelt), however, only one of the cells was rooted out and destroyed. How many more actually were operating no one can say for sure.

The Communist cells which operated in the U.S until late 1991 under Soviet control could have at their command a leader, who held a social position which appeared to be very lowly. He could be, for example, a busboy in a restaurant, but in reality a colonel or a general in the Soviet Secret Service, the KGB. Under him could be a number of cells and a person active in one cell would almost never have knowledge of individuals who are active in another cell. The value of this is that while any one cell can be infiltrated, exposed or destroyed, such action will have no effect on the other cells; in fact, the members of the other cells will be supporting that cell which is under attack and ordinarily would lend very strong support to it in many ways. This is at least part of the reason, no doubt, that whenever in the past Communists were attacked in this country, support for them sprang up in many unexpected places.

The efficient and effective operation of a cell system after the Communist model, is of course, dependent upon central direction, which means impressive organization, funding from the top, and outside support, all of which the Communists had. Obviously, American patriots have none of these things at the top or anywhere else, and so an effective cell organization based upon the Soviet system of operation is impossible.

Two things become clear from the above discussion. First, that the pyramid type of organization can be penetrated quite easily and it thus is not a sound method of organization in situations where the government has the resources and desire to penetrate the structure; which is the situation in this country. Secondly, that the normal qualifications for the cell structure based upon the Red model does not exist in the U.S. for patriots. This understood, the question arises “What method is left for those resisting state tyranny?” The answer comes from Col. Amoss who proposed the “Phantom Cell” mode of organization. Which he described as Leaderless Resistance. A system of organization that is based upon the cell organization, but does not have any central control or direction, that is in fact almost identical to the methods used by the Committees of Correspondence during the American Revolution. Utilizing the Leaderless Resistance concept, all individuals and groups operate independently of each other, and never report to a central headquarters or single leader for direction or instruction, as would those who belong to a typical pyramid organization.

At first glance, such a type of organization seems unrealistic, primarily because there appears to be no organization. The natural question thus arises as to how are the “Phantom cells” and individuals to cooperate with each other when there is no intercommunication or central direction? The answer to this question is that participants in a program of Leaderless Resistance through phantom cell or individual action must know exactly what they are doing, and how to do it. It becomes the responsibility of the individual to acquire the necessary skills and information as to what is to be done. This is by no means as impractical as it appears, because it is certainly true that in any movement, all persons involved have the same general outlook, are acquainted with the same philosophy, and generally react to given situations in similar ways. The pervious history of the committees of correspondence during the American Revolution show this to be true.

Since the entire purpose of Leaderless Resistance is to defeat state tyranny (at least insofar as this essay is concerned), all members of phantom cells or individuals will tend to react to objective events in the same way through usual tactics of resistance. Organs of information distribution such as newspapers, leaflets, computers, etc., which are widely available to all, keep each person informed of events, allowing for a planned response that will take many variations. No one need issue an order to anyone. Those idealist truly committed to the cause of freedom will act when they feel the time is ripe, or will take their cue from others who precede them. While it is true that much could be said against this type of structure as a method of resistance, it must be kept in mind that Leaderless Resistance is a child of necessity. The alternatives to it have been show to be unworkable or impractical. Leaderless Resistance has worked before in the American Revolution, and if the truly committed put it to use for themselves, it will work now.

It goes almost without saying that Leaderless Resistance leads to very small or even one man cells of resistance. Those who join organizations to play “let’s pretend” or who are “groupies” will quickly be weeded out. While for those who are serious about their opposition to federal despotism, this is exactly what is desired.

From the point of view of tyrants and would be potentates in the federal bureaucracy and police agencies, nothing is more desirable than that those who oppose them be UNIFIED in their command structure, and that every person who opposes them belong to a pyramid type group. Such groups and organizations are an easy kill. Especially in light of the fact that the Justice (sic) Department promised in 1987 that there would never be another group that opposed them that they did not have at least one informer in. These federal “friends of government” are intelligence agents. They gather information that can be used at the whim of a federal D.A. to prosecute. The line of battle has been drawn. Patriots are required therefore, to make a conscious decision to either aid the government in its illegal spying, by continuing with old methods of organization and resistance, or to make the enemie’s job more difficult by implementing effective countermeasures.

Now there will, no doubt, be mentally handicapped people out there who, while standing at a podium with an American flag draped in the background, and a lone eagle soaring in the sky above, will state emphatically in their best sounding red, white, and blue voice, “So what if the government is spying? We are not violating any laws.” Such crippled thinking by any serious person is the best example that there is a need for special education classes. The person making such a statement is totally out of contact with political reality in this country, and unfit for leadership of any thing more than a dog sleigh in the Alaskan wilderness. The old “Born on the fourth of July” mentality that has influenced so much of the American patriot’s thinking in the past will not save him from the government in the future. “Reeducation” for non-thinkers of this type will take place in the federal prison system where there are no flags or eagles, but abundance of men who were “not violating any law.”

Most groups who “unify” their disparate associates into a single structure have short political lives. Therefore, those movement leaders constantly calling for unity of organization rather than the desirable unity of purpose, usually fall into one of three categories.

They may not be sound political tacticians, but rather, just committed men who feel unity would help their cause, while not realizing that the government would greatly benefit from such efforts. The Federal objective, to imprison or destroy all who oppose them, is made easier in pyramid organizations. Or perhaps, they do not fully understand the struggle they are involved in and that the government they oppose has declared a state of war against those fighting for faith, folk, freedom and constitutional liberty. Those in power will use any means to rid themselves of opposition. The third class calling for unity and let us hope this is the minority of the three, are men more desirous of the supposed power that a large organization would bestow, than of actually achieving their stated purpose.

Conversely, the last thing Federal snoops would have, if they had any choice in the matter, is a thousand different small phantom cells opposing them. It is easy to see why. Such a situation is an intelligence nightmare for a government intent upon knowing everything they possibly can about those who oppose them. The Federals, able to amass overwhelming strength of numbers, manpower, resources, intelligence gathering, and capability at any given time, need only a focal point to direct their anger. A single penetration of a pyramid type of organization can lead to the destruction of the whole. Whereas, Leaderless Resistance presents no single opportunity for the Federals to destroy a significant portion of the Resistance.

With the announcement by the Department of Justice (sic) that 300 FBI agents formerly assigned to watching Soviet spies in the US (domestic counter intelligence) are now to be used to “combat crime”, the federal government is preparing the way for a major assault upon those persons opposed to their policies. Many anti-government groups dedicated to the preservation of the America of our forefathers can expect shortly to feel the brunt of a new federal assault upon liberty.

It is clear, therefore, that it is time to rethink traditional strategy and tactics when it comes to opposing a modern police state. America is quickly moving into a long dark night of police state tyranny, where the rights now accepted by most as being inalienable will disappear. Let the coming night be filled with a thousand points of resistance. Like the fog which forms when conditions are right and disappears when they are not, so must the resistance to tyranny be.
“If every person has the right to defend–even by force–his person, his liberty, and his property, then it follows that a group of men have the right to organize and support a common force to protect these rights constantly.” —The Law. Frederick Bastiat Paris, 1850.

Editors Note: This essay was written by Louis Beam in 1983 and published at that time. Republished above in 1992. I do not take credit for the theories expounded upon here, Col. Amoss deserves the credit for his brilliant analysis and insightful thinking.

A SKELETON KEY TO THE GEMSTONE FILES

THE GEMSTONE FILES ARE ALLEGEDLY THE KEYS TO UNDERSTANDING THE PAST FIFTY YEARS OF AMERICA’S SECRET HISTORY.  IT CONSISTS OF THOUSANDS OF PAGES OF TESTIMONY FROM AN ALLEGED INSIDER, DETAILING THE CONNECTIONS BETWEEN THE MAFIA, THE GOVERNMENT AND THE WORLD’S RICHEST MEN, REVEALING THEIR HIDDEN HAND IN THE JFK ASSASSINATION AND THEIR PLANS TO RULE THE WORLD.

A SKELETON KEY TO THE GEMSTONE FILES

Confronting Taliban, Pakistan Finds Itself at War

Confronting Taliban, Pakistan Finds Itself at War

Tariq Mahmood/Agence France-Presse — Getty Images

Fighting between militants and the military has driven thousands of people into refugee camps in Pakistan’s tribal areas.

Pakistani soldiers on a patrol this week south of Peshawar. The military recently recaptured a vital road in that area that had been controlled by the Taliban.

— War has come to Pakistan, not just as terrorist bombings, but as full-scale battles, leaving Pakistanis angry and dismayed as the dead, wounded and displaced turn up right on their doorstep.

An estimated 250,000 people have now fled the helicopters, jets, artillery and mortar fire of the Pakistani Army, and the assaults, intimidation and rough justice of the Taliban who have dug into Pakistan’s tribal areas.

About 20,000 people are so desperate that they have flooded over the border from the Bajaur tribal area to seek safety in Afghanistan.

Many others are crowding around this northwest Pakistani city, where staff members from the United Nations refugee agency are present at nearly a dozen camps.

No reliable casualty figures are available. But the International Committee of the Red Cross flew in a special surgical team from abroad last week to work alongside Pakistani doctors and help treat the wounded in two hospitals, so urgent has the need become.

“This is now a war zone,” said Marco Succi, the spokesman for the International Committee of the Red Cross.

Not since Pakistan forged an alliance with the United States after 9/11 has the Pakistani Army fought its own people on such a scale and at such close quarters to a major city. After years of relative passivity, the army is now engaged in heavy fighting with the militants on at least three fronts.

The sudden engagement of the Pakistani Army comes after months in which the United States has heaped criticism, behind the scenes and in public, on Pakistan for not doing enough to take on the militants, and increasingly took action into its own hands with drone strikes and even a raid by Special Operations forces in Pakistan’s tribal areas.

But the army campaign has also unfolded as the Taliban have encroached deeper into Pakistan proper and carried out far bolder terrorist attacks, like the Marriott Hotel bombing on Sept. 20, which have generated fears among the political, business and diplomatic elite that the country is teetering.

Fighting on Three Fronts

In early August, goaded by the American complaints and faced with a nexus of the Taliban and Al Qaeda that had become too powerful to ignore, the chief of the Pakistan military, Gen. Ashfaq Parvez Kayani, opened the front in Bajaur, a Taliban and Qaeda stronghold along the Afghan border.

Earlier this summer, the military became locked in an uphill fight against the militants in Swat, a more settled area of North-West Frontier Province that was once a middle-class ski resort. Today it is a maelstrom of killing.

“Swat is a place of hell,” said Wajid Ali Khan, a minister in the provincial government who has taken refuge in Peshawar. Mr. Khan said he was so afraid that he had not been to his house in Swat for a month.

At a third front, south of Peshawar, around the town of Dera Adam Khel, the army recently recaptured from Taliban control the strategic Kohat tunnel, a road more than a mile long that carries NATO supplies from the port of Karachi to the American and coalition forces in Afghanistan.

The new president of Pakistan, Asif Ali Zardari, spoke in New York during a visit to the United Nations General Assembly, about how the fight against terrorism was Pakistan’s war, not America’s.

But even as the gruesome effects of the battles slam the national consciousness, there has been scant effort to prepare the public for the impact of the fighting. Public opinion has soured on Pakistan’s alliance with the United States and has strongly opposed military campaigns that inflict heavy civilian casualties.

Pakistani law enforcement officials and residents of Bajaur and Swat say there have been many civilian deaths, but so far, no agency or government body has offered an estimate of those killed.

Hanging in the balance in the fighting is the allegiance of the civilians who have seen their homes wrecked, their cattle and crops abandoned, and their loved ones killed and wounded.

Pakistani Army commanders have said that in order to put down the Taliban, the government must win the hearts and minds of the Bajaur tribesmen.

Losing Hearts and Minds

But in interviews in the camps, and in villages around Peshawar where the displaced are bunking with relatives, many of the people of Bajaur say they are fed up with both sides of the conflict.

In the Red Cross hospital ward, two young brothers, Haseen Ullah, 5, and Shakir Ullah, 8, lay immobile on their hospital beds, their limbs tightly bound in white bandages covering what Dr. Daniel Brechbuhler, a Red Cross surgeon, said were shrapnel wounds.

The father of the two wounded boys, Hajji Sher Zaman, a relatively well-to-do used-car dealer in Bajaur, said he had no patience with the Taliban.

But Mr. Zaman said he was furious with the government for not holding anyone responsible for the killing and wounding of civilians.

ZIONIST GENERAL, ATTACK INFRASTRUCTURE, HUMAN SERVICES

Siboni: Destroy Lebanon in Case of New War

Readers Number : 60
Gabriel Siboni

03/10/2008 Israeli reserve Brigadier General Gabriel Siboni called for striking Lebanon’s infrastructure in case of a new war. In an article published on the Israeli Institute for National Security Studies’ internet site, Siboni said that the “current predicament facing Israel involves two major challenges. The first is how to prevent being dragged into an ongoing dynamic of attrition on the northern border similar to what in recent years developed along the border with the Gaza Strip. The second is determining the IDF’s response to a large scale conflict both in the north and in the Gaza Strip.” Siboni analyzed that both challenges can be overcome by adopting the principle of a “disproportionate strike against the enemy’s weak points as a primary war effort, and operations to disable the enemy’s missile launching capabilities as a secondary war effort.”

PUNISHMENT IS TO DESTROY LITERARLY EVERYTHING
The Israeli Brigadier General writes that with an outbreak of hostilities, “the IDF will need to act immediately, decisively, and with force that is disproportionate to the enemy’s actions and the threat it poses. Such a response aims at inflicting damage and meting out punishment to an extent that will demand long and expensive reconstruction processes. The strike must be carried out as quickly as possible, and must prioritize damaging assets over seeking out each and every launcher. Punishment must be aimed at decision makers and the power elite. In Syria, punishment should clearly be aimed at the Syrian military, the Syrian regime, and the Syrian state structure. In Lebanon, attacks should both aim at Hezbollah’s military capabilities and should target economic interests and the centers of civilian power that support the organization. Moreover, the closer the relationship between Hezbollah and the Lebanese government, the more the elements of the Lebanese state infrastructure should be targeted.”

Siboni believes that such a response will create a lasting memory among Syrian and Lebanese decision makers, “thereby increasing Israeli deterrence and reducing the likelihood of hostilities against Israel for an extended period. At the same time, it will force Syria, Hezbollah, and Lebanon to commit to lengthy and resource-intensive reconstruction programs.”

RESPONSE SHOULD BE DISPROPORTIONATE
He stressed Israel does not have to be dragged into a war of attrition with Hezbollah. “Israel’s test will be the intensity and quality of its response to incidents on the Lebanese border or terrorist attacks involving Hezbollah in the north or Hamas in the south. In such cases, Israel again will not be able to limit its response to actions whose severity is seemingly proportionate to an isolated incident. Rather, it will have to respond disproportionately in order to make it abundantly clear that the State of Israel will accept no attempt to disrupt the calm currently prevailing along its borders. Israel must be prepared for deterioration and escalation, as well as for a full scale confrontation. Such preparedness is obligatory in order to prevent long term attrition. The Israeli home front must be prepared to be fired upon, possibly with even heavy fire for an extended period, based on the understanding that the IDF is working to reduce the period of fighting to a minimum and to create an effective balance of deterrence.”

“By instilling proper expectations of the IDF response among the civilian population, Israel will be able to improve its readiness and the resilience of its citizens. Still, the IDF’s primary goal must nonetheless be to attain a ceasefire under conditions that will increase Israel’s long term deterrence, prevent a war of attrition, and leave the enemy floundering in expensive, long term processes of reconstruction,” Siboni concluded.

Gabriel Siboni joined the research team of the Institute for National Security Studies in early 2006.
He served as a fighter and commander in the Golani Brigade and completed his service as the brigade’s reconnaissance unit commander. Within the scope of his reserve service, he served as senior staff officer of the Golani Brigade, deputy commander of the logistics unit, and chief of staff of an armored division in the north.
In addition to his work at INSS, Siboni is also a consultant in a wide range of fields, including operational systems and military technology.

The New American Century: Cut Short By 92 Years

The New American Century: Cut Short By 92 Years

By Mike Whitney The war that Bush has launched against the world–the war on terror–will persist for years after the US financial system collapses in a heap. The will to power is fueled by arrogance, class consciousness, and a “sense of entitlement” that is stronger than even the will to survive. This is the force that animates the destructive, suicidal impulses of the current conflict. And that is why the war will continue. The social fabric within the US will be torn to shreds long before the fighting stops. A strong sense of entitlement creates the belief that “The world is mine to do with whatever I choose; the claims of others are of no consequence”. These feelings cannot be changed through logic or rational discussion; they must be eradicated with a scalpel the same way one would remove a cancerous tumor. – Mike Whitney


02/10/08 ‘WPA” — – America’s time as a superpower is coming to an end. The financial crisis was just the last straw. Whatever good faith was left after the invasion of Iraq, the shrugging off of international treaties and the shameless disregard for human rights, is now gone. The United States has polluted the global economic system with worthless mortgage-backed securities and, by doing so, has pushed 6 billion people closer to a long and painful recession. That’s not something that can be easily forgiven.

The anger at the US seems to be surfacing everywhere at once. It was particularly noticable at the recent opening of the UN General Assembly. Typically, this is a tedious event full of empty political blabbering and pretentious ceremonies. But not this time. With the world sliding towards a US-created recession; patience have worn thin, and foreign leaders have started to lashing out at the United States more vehemently. The speeches have been blunt and acrimonious; no one is “pulling their punches” any more. Venezuela’s Hugo Chavez summed up the mood of the meetings like this:

“I think that, sooner rather than later, this empire will fall – to the benefit of the whole world, enabling a balance in the world to be created: polycentric and multi-polar. That will guarantee peace in the world. To the creation of this multi-polar world we are making our small contribution.”

Chavez likes the American people but opposes the American Empire; it’s that simple. He was the first foreign leader to offer food and medical assistance to the victims of Hurricane Katrina. (Bush refused his offer) Also, he regularly supplies tons of heating oil to low-income families in the Northeast USA.

What Chavez objects to is Bush’s “unipolar” model of global governance whereby all the world’s crucial decisions–on everything from global warming to nuclear proliferation–are made by Washington. No one likes being told what to do, just as no one likes the US constantly meddling in their affairs. That’s why none of the UN attendees seem particularly bothered by the fact that the US financial markets are in freefall. It’s called schadenfreude, taking pleasure in someone elses misfortune, and there was ample supply of it at the United Nations last week.

Many of the dignitaries seem to believe that America’s sudden downturn presents opportunities for a change in the way the world is run. That’s what everyone wants; change. Real change. No one wants another 8 years like the last. That’s why the central theme in Chavez’s speech was repeated over and over again by the other world leaders. They reject the present system and want a bigger role in shaping the world’s future.

That doesn’t mean that the world hates America. It just means that everyone wants a breather from the torture, the abductions, the bombing of civilians, and now, the financial contagion that the US has spread throughout the global system. The US’s lack of regulation and low interest monetary policies have driven up inflation, triggered food riots, and sent oil prices skyrocketing. Enough is enough. The United States is like the dinner guest who doesn’t know when it’s time to go home. Perhaps, a touch of recession will help to rebalance Washington’s approach and make its leaders more responsive to the needs of the rest of the world. In any event, other nations are already preparing for a world where America’s role is greatly reduced.

Journalist John Gray summed it up like this in his article in The Observer, “A Shattering Moment in America’s fall from Power”:

“The control of events is no longer in American hands…..Having created the conditions that produced history’s biggest bubble, America’s political leaders appear unable to grasp the magnitude of the dangers the country now faces. Mired in their rancorous culture wars and squabbling among themselves, they seem oblivious to the fact that American global leadership is fast ebbing away. A new world is coming into being almost unnoticed, where America is only one of several great powers, facing an uncertain future it can no longer shape.”

The US is about to join the family of nations and learn how to get along with its neighbors whether it wants to or not. There’s simply no other choice; the dollar is falling, the deficits are soaring, and the financial markets are in a shambles. America will either learn to cooperate or become isolated in a world that is rapidly integrating. It’s “get along or get out”; a message that Washington needs to learn quickly so it can adapt to a new power-paradigm.

Yes; plenty of money will still go into covert operations and CIA-sponsored dirty tricks just to keep alive the hope the Superpowerdom will be restored. That is to be expected. The well-heeled rogues in the British royal family still dream of rebuilding the Empire, too. But realists know that it’s just a harmless fantasy. Nothing will come of it. Empire’s have a short shelf-life and they’re impossible to stitch-back together. They usually end on a corpse strewn battlefield or in a towering financial bonfire which leaves nothing behind but a pile of ashes and shards of broken glass. We can only hope that the yawning economic chasm ahead of us all, will involve less hardship than we anticipate. But when a nation sows dragon’s teeth, it shouldn’t expect a harvest of sweet plums.

Journalist Steve Watson reports on Infowars:

“A Council on Foreign Relations member and former policy planner under prominent Bilderberger Henry Kissinger has penned a piece in the Financial Times of London calling for a “new global monetary authority” that would have the power to monitor all national financial authorities and all large global financial companies.

“Even if the US’s massive financial rescue operation succeeds, it should be followed by something even more far-reaching – the establishment of a Global Monetary Authority to oversee markets that have become borderless.” writes Jeffrey Garten also a former managing director of Lehman Brothers

The biggest global financial companies would have to register with the Global Monetary Authority (GMA) and be subject to its monitoring, or be blacklisted. That includes commercial companies and banks, but also sovereign wealth funds, gigantic hedge funds and private equity firms. The GMA’s board would have to include central bankers not just from the US, UK, the eurozone and Japan, but also China, Saudi Arabia and Brazil. It would be financed by mandatory contributions from every capable country and from insurance-type premiums from global financial companies – publicly listed, government owned, and privately held alike.” (Infowar.com)

The dream of “one world” government does not die easily, but it is dead all the same. The center of the present global financial system is the Federal Reserve. Its offspring includes the Council on Foreign Relations, the IMF, The World Bank, the G-7 banking cartel and thousands of predatory NGOs which have expanded the grip of the Washington banking cabal and the dollarized system across the planet. Neoliberalism is collapsing. What we are seeing now is the erratic spasms of a terminal heart patient entering the final stages of cardiac arrest. There is no drug or medical procedure that will restore the victim to good health.

No one is looking to the US or its “economic hit-men” to chart a course for their country’s economic future. Those day’s are over. The US will have to pull itself from the rubble and start over without the massive infusions of low interest capital from China, Japan and the Gulf States. The money spigots have been turned off. It’s thin gruel and hard times ahead. That’s the price one pays for swindling the world with worthless mortgage-backed snake oil and other “illiquid” garbage.

Russian President Vladimir Putin summed up recent events in the financial markets like this:

“Everything that is happening in the economic and financial sphere has started in the United States. This is a real crisis that all of us are facing, and what is really sad is that we see an inability to take appropriate decisions. This is no longer irresponsibility on the part of some individuals, but irresponsibility of the whole system, which as you know had pretensions to (global) leadership.”

Back at the United Nations, Germany’s Finance Minister Peer Steinbuck echoed similar sentiments when he said:

“The United States is solely to be blamed for the financial crisis. They are the cause for the crisis and it is not Europe and it is not the Federal Republic of Germany. The Anglo-Saxon drive for double-digit profits and massive bonuses for bankers and company executives that were responsible for the financial crisis.”

He added,”The long term consequences of the crisis are not clear. but one thing seems likely to me; the USA will lose its superpower status in the global financial system. The world financial system is becoming multipolar.”

Steinbuck was merely reiterating the feelings of Chancellor Angela Merkel who used more diplomatic language in her critique:

“The current crisis shows us you can do some things on the national level, but the overwhelming majority must be agreed to on the international level. We must push for clearer regulations so that a crisis like the current one cannot be repeated.”

Merkel knows that Europe was blind-sighted by America’s deregulated system which allows crooks and chiselers to rule the roost. Even now–in the middle of the biggest financial scandal in history–not one CEO or CFO from a major investment bank has been indicted or dragged off to prison. US markets are a lawless “free for all” where no one is held accountable no matter how large the crime or how many people are hurt. But, there’s a price to be paid for running a crooked system and fleecing investors, and the US will pay that price. Already, the purchase of US Treasurys has slowed to a crawl. In the coming months, America’s life-support system will be disconnected altogether and the oxygen tent removed. Kissinger’s protege is not worried about that; but working class American’s should be. There’s a train wreck just ahead and many people will suffer needlessly.

This is how Spiegel Online puts it:

“The banking crisis is upending American dominance of the financial markets and world politics. The industrialized countries are sliding into recession, the era of turbo-capitalism is coming to an end and US military might is ebbing….This is no longer the muscular and arrogant United States the world knows, the superpower that sets the rules for everyone else and that considers its way of thinking and doing business to be the only road to success.

A new America is on display, a country that no longer trusts its old values and its elites even less: the politicians, who failed to see the problems on the horizon, and the economic leaders, who tried to sell a fictitious world of prosperity to Americans….Also on display is the end of arrogance. The Americans are now paying the price for their pride.” (Spiegel Online, “America loses its Dominant Economic Role”)

President Dmitry Medvedev was not present at the opening ceremonies at the United Nations, but his views on the nascent “multipolar” world are worth considering. In a recent interview he said:

“We cannot have a single polar world. The world has to have various poles. A policentric world is the only way of ensuring security for the years ahead. So I think it is a very promising direction for our country to pursue…The world is more stable when there are a range of major, important political players. In a multipolar world, everyone influences everyone else. We will work to extend ourselves.

I do not think that the bipolar world that existed between NATO and the Warsaw Pact (The Cold War)has any future prospects. But it is clear today that the single-polar world is completely unable to manage crisis situations.”

Both presidential candidates have vowed to continue the unilateralist Bush Doctrine. Obama is just as eager as McCain to violate sovereign borders, invade countries that pose no imminent national security threat to the US, and carry out the many flagrant violations of human rights and international law as long as it advances the geopolitical objectives of western mandarins. There’s no doubt that the impending financial meltdown will bring our leaders back to their senses and help to restore the republic. The US needs a foreign policy that doesn’t require slaughtering people in their homes or ripping off their retirement savings to maintain our standard of living.

The war that Bush has launched against the world–the war on terror–will persist for years after the US financial system collapses in a heap. The will to power is fueled by arrogance, class consciousness, and a “sense of entitlement” that is stronger than even the will to survive. This is the force that animates the destructive, suicidal impulses of the current conflict. And that is why the war will continue. The social fabric within the US will be torn to shreds long before the fighting stops. A strong sense of entitlement creates the belief that “The world is mine to do with whatever I choose; the claims of others are of no consequence”. These feelings cannot be changed through logic or rational discussion; they must be eradicated with a scalpel the same way one would remove a cancerous tumor.

There’s trouble ahead. The multi-polar world is about to collide head-on with the “faith-based” unipolar world and millions are bound to suffer. But there is no doubt about the final outcome. The geopolitical plates are shifting inexorably away from Washington. America’s ability to wage war will steadily erode as capital and resources dry up. Its only a matter of time before the war machine sputters to a halt and the troops return home. When the killing stops, a truly new world order will begin.

“Some Saudis back Lebanon’s Salafis”

“Some Saudis back Lebanon’s Salafis”
Thu, 02 Oct 2008 15:24:15 GMT

A tribal leader of Lebanon’s main Alawite group has said Saudi Arabia provides Salafi groups with financial support in northern Lebanon.

Rafat Eid, the official of political bureau of Arabic Democratic Party, made the remarks after a bomb blast in the al-Bahsas district of Tripoli destroyed a military bus and killed 24 people last week.

Lebanese Unification Party leader Wi’am Wahhab also accused some Saudi groups of masterminding the recent attack in Tripoli.

“People like Bandar bin Sultan, (the former Saudi envoy to the United States) and his organizations were involved in Tripoli blasts and even the assassination of (former Lebanese Prime Minister) Rafiq Hariri”, IRNA quoted Wahhab as saying in Beirut.

Citing Lebanese sources, the Syrian newspaper Al-Watan revealed last week that bin Sultan had called on Rafiq Hariri to allow Salafi groups to enter Lebanon. Hariri however rejected the demand, saying their presence will provide a free service to Israel.

Clashes between Salafi groups and Alawite population turned Tripoli into a battleground. The Lebanese military was targeted at another Tripoli bus stop less than two months ago, when a remote-controlled device exploded, killing 14 people in mid-August.

The Last Bubble

The Last Bubble


by Eric Janszen

Written for the German broadsheet daily

Oct. 2, 2008

That was it. The housing boom. The leveraged buy-outs. The high flying hedge funds. Mega houses. Super cars. Big dreams of endless credit. All gone. All over. Done, once again.

A fantasy creation of the latest grand experiment in global Ponzy capitalism. A Disney world of wealth produced by debt.

This last great credit bubble grew since 1980 until its peak in 2007 when nearly US$5 of new debt was needed to fund a single dollar of US national income growth up from US$1 a generation before.

It started when the US abandoned the international gold standard in 1971, replaced with a global monetary regime based on dollars that the US could issue in unlimited supply. Nations outside the US created dollar demand and value not as a reward to the US for a positive balance of trade but for lack of other international pricing and transaction options. As demand for dollar denominated financial assets grew, the market price of finite global commodities, such as oil, was distorted downward, interest rates declined, money became cheap.

Cheap money funded asset bubbles. The LBO bubble of the late 1980s. The 1990s technology bubble. The 2000s housing bubble.

The era of cheap credit to fund asset price inflation ended with the crash of the securitized debt market in the spring of 2007.

The physical world left behind will be with us for decades, the way the credit bubble of the 1920s haunted us with its images of excess through The Great Depression, WWII, the Soviet era, all the way into the 1980s in some nations before the wave of socialization and nationalization receded and market economies recovered, before finance capitalism arose once again.

As we face the economic wreckage of the second credit bubble in a century to rebuild, our leaders will promise restoration of the mirage. But our old debt based reality was a fantasy, a dream. We have no more chance to recreate it than we have in the morning after waking from a lovely dream to fall asleep again back into it while the alarm is ringing.

To preserve the great institutions of American capitalism, government will need to cut tax subsidies to non-productive industries, such as real estate, become less dependent on borrowing and domestic consumption, encourage saving and investment, and reallocate financial and human capital to rebuild America’s physical and economic infrastructure, a new economic foundation that nurtures the next generation of globally competitive American private enterprise.

In a decade, after our economy recovers, the history books will echo the age-old refrain “what were we thinking?”