WEBVTT NOTE Politics and the Power Elite 1 00:00:00.000 --> 00:00:11.000 And shortly after that, Hughes designs and Secretary of State is Frank Kellogg, who no one continues as Secretary of Treasury, of course. 2 00:00:11.000 --> 00:00:19.000 He wasn't as well known as Hughes, but Kellogg was a lawyer from St. Paul, Minnesota. 3 00:00:19.000 --> 00:00:24.000 He was General Counsel for U.S. Steel, which of course was a top Morgan company. 4 00:00:24.000 --> 00:00:30.000 He was also a lawyer for James J. Hill's various railroad investments. 5 00:00:30.000 --> 00:00:37.000 Remember, Hill started from Minnesota, and the Great Northern Hill was allied with Morgan, closely allied with Morgan at this point. 6 00:00:37.000 --> 00:00:42.000 So he was a Morgan lawyer, also a lawyer for Hill personally. 7 00:00:42.000 --> 00:00:48.000 As undersecretary of state, so Kellogg is definitely a Morgan person. 8 00:00:48.000 --> 00:01:03.000 Under Secretary of State, he wanted to get Morrow, the Morrow-Morgan partner, actually Morrow wound up heading up the Latin American desk, at least unofficially, he was really sort of heading up Latin American foreign policy over in the 20s. 9 00:01:03.000 --> 00:01:09.100 The moral was a Morgan partner. He couldn't moral refuse, and he finally got Joseph C. 10 00:01:09.100 --> 00:01:18.200 Grew, who was a career diplomat on the Secretary of State, who later became ambassador to Japan 11 00:01:18.200 --> 00:01:24.600 under Roosevelt. Joseph C. Grew was a career diplomat. His cousin married the son of J. 12 00:01:24.600 --> 00:01:28.200 P. Morgan. Also a good thing to do if your cousin marries the son of J. P. Morgan, I'll 13 00:01:28.200 --> 00:01:51.200 and again, definitely a Morgan person, and during the Coolidge administration, as I say, Dwight Mawr became more or less virtually head of the Latin American desk in the relationship with Nicaragua and so forth, and another Morgan person became Morgan attorney, Mawr became head of another part of the Latin American desk. 14 00:01:51.200 --> 00:02:04.200 So, and indeed when Roosevelt went to war in Japan, Joseph C. Grue was the ambassador to Japan. He was the only person in the State Department to be against the war in Japan in favor of negotiated peace. 15 00:02:04.200 --> 00:02:14.200 Because of that, we'll contend in a minute, Grue was a, the Morgans were not in favor of war in Asia. They didn't have any investments in Asia. They didn't care about it. They were in favor of peace in Asia. 16 00:02:14.200 --> 00:02:21.200 At any rate, the 1924 campaign, as I think I mentioned, I'll just sum up again, when Coolidge ran for re-election in 24, 17 00:02:21.200 --> 00:02:33.200 the Democrats, there was a big fight for the Democratic nomination between William G. McAdoo, the guy who had been Wilson's Secretary of Treasury, and Morgan Perkins, Morgan loved McAdoo, he was a Morgan candidate, 18 00:02:33.200 --> 00:02:39.200 and the Ku Klux Klan candidate, he was then, and moved to California, he was backed by the Ku Klux Klan, and the pietists. 19 00:02:39.200 --> 00:02:49.200 Prohibition came in with World War I on the cover of the war effort to save our soldiers from the sin of alcohol. 20 00:02:49.200 --> 00:02:52.200 In the hysteria of that, they passed a prohibition amendment. 21 00:02:52.200 --> 00:02:55.200 The prohibition was not only illegal by federal law, but also unconstitutional. 22 00:02:55.200 --> 00:02:59.200 All liquor of any sort, even wine, was unconstitutional. 23 00:02:59.200 --> 00:03:02.200 They'd have it, possess it, sell it, or whatever. 24 00:03:02.200 --> 00:03:07.320 So even though it came in on the Democrats, the Republicans were all for it, being pious 25 00:03:07.320 --> 00:03:11.800 anyway, the Southern Democrats were all for it, being pious by now, and the only opponents 26 00:03:11.800 --> 00:03:15.960 were Northern Catholics and Irish Catholics and whatever. 27 00:03:15.960 --> 00:03:21.560 So in the 1924 convention, Democratic convention, McAdoo represented the Prohibitionist forces 28 00:03:21.560 --> 00:03:25.920 and the Ku Klux Klan, which was very strong in the 1920s everywhere, not just in the South, 29 00:03:25.920 --> 00:03:31.480 running on an anti-Catholic ticket, and an anti-Catholic was sinful because they drank 30 00:03:31.480 --> 00:04:01.480 and Al Smith, an Irish Catholic, running for governor in New York, running for the presidential nomination as a northern Catholic candidate, so to speak, anti-prohibition, and it was an hysterical convention, it went to 104 ballots, and it was in New York, it lasted for a week, no air conditioning, and total hysteria takes over, and the Southern Pliotists and the 31 00:04:01.480 --> 00:04:31.480 and the Irish Catholic in New York, virtually at sword's point, and finally as a compromise candidate, since neither could get two-thirds, in those days Democrats, to win the Democratic nomination had to have two-thirds votes, they pick a compromise candidate, John W. Davis, from the corporate law firm of Davis Polk and Wardwell, a major Morgan law firm in the country. In other words, John W. Davis was the chief partner of the pop Morgan law firm as a compromise candidate between Morgan's McAdoo and Smith. So he had a 1925 32 00:04:31.480 --> 00:04:34.400 These four are the lovely prospects in the Morgan point of view of both candidates being 33 00:04:34.400 --> 00:04:38.720 Morgan people, Coolidge a Morgan person, Davis a Morgan person, tight Morgan people, they 34 00:04:38.720 --> 00:04:43.840 couldn't lose whoever won. They don't often have that, it's a lovely situation for them 35 00:04:43.840 --> 00:04:51.840 at least. Attorney General under Coolidge was Harlan Fisk Stone who was the Dean of 36 00:04:51.840 --> 00:05:00.200 Columbia Law School and his law partner was a progressive, his law partner was Herbert 37 00:05:00.200 --> 00:05:07.200 Satterley was the son-in-law of J.P. Morgan. So again, a Morgan person. We have in other 38 00:05:07.860 --> 00:05:14.860 words under Coolidge we have an entire Morgan cabinet from top to bottom, open Morgan control 39 00:05:16.360 --> 00:05:21.960 and Storm of course running for Fed, inflating in the Fed as a Morgan policy there. 40 00:05:21.960 --> 00:05:27.000 In 1928 we will get, by the way the assistant secretary, they set up a new assistant secretary 41 00:05:27.000 --> 00:05:30.680 Secretary for Air and the War Department, Air and Airplanes not coming in, they have 42 00:05:30.680 --> 00:05:36.160 the first Air Secretary, F. Truby Davison was the brother of Henry T. Davison Morgan 43 00:05:36.160 --> 00:05:40.160 Partners, we have the Morgan Control of the Airways, Morgan and the others, the Coolidge 44 00:05:40.160 --> 00:05:47.160 administration was a total Coolidge administration from top to bottom. When Hoover comes in, 45 00:05:47.760 --> 00:05:52.720 so who was Hoover? Hoover himself was a self-made millionaire, he was a mining engineer and 46 00:05:52.720 --> 00:05:59.720 He was a great geologist, going all over the world in Asia and Australia, etc., prospecting mining properties and promoting them. 47 00:05:59.720 --> 00:06:06.720 Then he settled in London. People didn't know too much about him. He was then the food czar, of course, in World War I and Wilsonian. 48 00:06:06.720 --> 00:06:10.720 So he himself was an independent millionaire. In a sense, he wasn't dominated by people. 49 00:06:10.720 --> 00:06:18.720 On the other hand, he was close to the Morgans. When he got into it as president in 1928, he spoke regularly three times a week to Dwight Morrow, 50 00:06:18.720 --> 00:06:27.220 Once again, key person, Morgan Partner. Anybody who speaks three times a week to my point tomorrow is definitely in the Morgan ambit. 51 00:06:27.220 --> 00:06:38.720 Coolidge was, in other words, Morrow was Coolidge's main guru and whatever, control, if you want to call it that, spy language, and also Hoover checked with him all the time, clear it with Morrow. 52 00:06:38.720 --> 00:06:42.720 He was also a good friend, Hoover of Thomas W. Lamont, Morgan Partner. 53 00:06:42.720 --> 00:06:50.720 So basically what we have with Hoover is a continuation of the Hoover, of the Morgan administration. 54 00:06:50.720 --> 00:07:02.720 Secretary of State, succeeding Hughes and then Kellogg, Henry Simpson, who was a Morgan person from way back, corporate lawyer, disciple of Ella Hewroot, Morgan person. 55 00:07:02.720 --> 00:07:09.720 The Simpsons comes in as Secretary of State. Secretary of Treasury continues to be Mellon. 56 00:07:09.720 --> 00:07:14.720 Again, of course, an ally was Morgan. 57 00:07:14.720 --> 00:07:20.720 Hoover was not very fond of Mellon personally, and he gets in as Undersecretary of Treasury. 58 00:07:20.720 --> 00:07:24.720 He gets in Ogden Mills, who was a Morgan person. 59 00:07:24.720 --> 00:07:31.720 His father was a director of New York Central Railroad, Morgan Railroad, and Southern Pacific Morgan Railroad. 60 00:07:31.720 --> 00:07:42.720 That's Ogden Mills, Senior. Ogden Mills, Junior, he's the guy who's Under Secretary of Treasury now, under Hoover, Under Secretary. 61 00:07:42.720 --> 00:07:47.720 In other words, succeeding Gilbert, goes on to become Morgan partner, gets his reward in heaven. 62 00:07:47.720 --> 00:07:57.720 Mills himself was on the board of Atchison Peak in Santa Fe, which is Morgan Railroad, a New York trust company and another Morgan company. 63 00:07:57.720 --> 00:08:22.720 So, now Simpson himself was a, had been, was closely allied with a Morgan lawyer, Secretary of State under Hoover, we have Hoover as a Morgan ambit, we have Simpson as Secretary of State, a Morgan person. 64 00:08:22.720 --> 00:08:26.720 Stimson comes in to be Secretary of War under Roosevelt and World War II 65 00:08:26.720 --> 00:08:30.720 under Roosevelt and Truman and World War II comes in 66 00:08:30.720 --> 00:08:34.720 as part of the Great World War II Alliance 67 00:08:34.720 --> 00:08:38.720 and so Stimson is a, was closely connected 68 00:08:38.720 --> 00:08:42.720 with a Wall Street investment firm, bond firm, Bondbrite and Company 69 00:08:42.720 --> 00:08:46.720 two of Stimson's cousins, Alfred Loomis and Landon Thorn 70 00:08:46.720 --> 00:08:50.720 were both directors of Bondbrite and Company, big shot 71 00:08:50.720 --> 00:08:58.720 I should say, high officials of Bondbrite, and they were both also directors of Bankers Trust Company, which is a big Morgan company, of course, where Storm comes from. 72 00:08:58.720 --> 00:09:05.720 So the Bondbrite Company is very close to the Morgan interest, really Morgan Run, and Bankers Trust. 73 00:09:05.720 --> 00:09:11.720 And we have two cousins of Simpson, closely linked up with the Morgan and Bondbrite Bankers Trust interests. 74 00:09:11.720 --> 00:09:18.720 And Simpson himself was a Morgan lawyer. Simpson brought in as his assistant secretary of state. 75 00:09:18.720 --> 00:09:31.720 Right this time, there's now assistant as well as undersecretary. He brought in Harvey Bundy, who was a director of AT&T, also in the Morgan ambit. 76 00:09:31.720 --> 00:09:46.720 He brings in as his disciple Harvey Bundy, who later fires two famous brothers, McGeorge Bundy, his two sons, McGeorge Bundy, who became more or less foreign policy head under, I think, Lyndon Johnson. 77 00:09:46.720 --> 00:09:56.720 His brother, William Bundy, became editor of Foreign Affairs, the big establishment foreign affairs journal of the Council of Foreign Affairs. 78 00:09:56.720 --> 00:10:01.720 In other words, we have a generation, and we had also Atchison, who becomes a disciple of Stimson later. 79 00:10:01.720 --> 00:10:08.720 So we, Atchison, Dean Atchison, we have a whole three, four generations of Morgan types running off foreign policy. 80 00:10:08.720 --> 00:10:19.720 We had Elihu Root as a disciple of Simpson, and Simpson as a disciple of Atchison and Harvey Bundy, and Harvey Bundy is the son of McGeorge Bundy and William Bundy. 81 00:10:19.720 --> 00:10:29.720 In other words, stretching from 1900 or 1902 until the 1960s and 70s, the same gang running American foreign policy and basically the same principles, all Morgan people. 82 00:10:29.720 --> 00:10:33.720 McGeorge Bundy is now a Harvard eminent Harvard type. 83 00:10:33.720 --> 00:10:38.720 I don't know if William is on one of the editors for our fairs at any rate, close in there. 84 00:10:38.720 --> 00:10:47.720 And Secretary of the Navy was Charles Francis Adams of the Adams family under Hoover, close 85 00:10:47.720 --> 00:10:53.720 to the Morgans from way back as a Boston Brahmin, son of Charles Francis Adams, a railroad tycoon, 86 00:10:53.720 --> 00:11:01.720 I remember from earlier in the term, and himself whose daughter, Charles Francis Adams Jr.'s 87 00:11:01.720 --> 00:11:08.720 So, again, with Hoover continuing Coolidge, we have a more or less straight Morgan administration. 88 00:11:15.720 --> 00:11:20.720 A couple of his friends were in there, didn't seem to be connected with anybody particularly. 89 00:11:20.720 --> 00:11:25.720 The president of Stanford was an old chum. Hoover became Secretary of Interior. Hoover 90 00:11:25.720 --> 00:11:31.720 Hoover was Stanford's first famous graduate, and so it's always been a Hoover-Stanford connection. 91 00:11:31.720 --> 00:11:39.720 In 1929, of course, the Great Depression hit the United States in 1931, the rest of the world, 92 00:11:39.720 --> 00:11:45.720 and I can only just state here what the cause of it was, I've already sort of alluded to it. 93 00:11:45.720 --> 00:11:54.720 Basically, it was the fact that Great Britain, after World War I, wanted to restore its financial preeminence. 94 00:11:54.720 --> 00:12:24.720 decided in order to do that, the whole world had to go back to the gold standard, but it was a different kind of gold standard, it's really going on to another kind, namely a gold standard, a very peculiar kind, which keeps the form of the gold standard without much of the content, in which the United States would remain on the gold standard, with the dollar fixed at 1.20 is the gold ounce, and the British went back to the old town, which essentially used to be $4.87 approximately, 95 00:12:24.720 --> 00:12:32.080 And even though, because of inflation during World War I, the British pound had gone down 96 00:12:32.080 --> 00:12:39.500 by about 1920 to about $3.20, in other words, had inflated even more than a dollar, double 97 00:12:39.500 --> 00:12:42.240 the money, five dollars more or less, double during the war. 98 00:12:42.240 --> 00:12:46.760 All the other countries went way beyond that because they were, largely because they were 99 00:12:46.760 --> 00:12:50.480 in the war for four years and the United States was only in the war for a year and a half. 100 00:12:50.480 --> 00:13:02.480 So they inflated a lot more, and also gold standard in World War I, and I'll try to go back to a gold standard on which, first of all, on which the British pound was re-evaluated upward to 487. 101 00:13:02.480 --> 00:13:12.480 I mean, totally insane way of doing it, and that's that the British, in order to keep its goods competitive, would have had to deflate by whatever this is, 20, 25, 30%. 102 00:13:12.480 --> 00:13:22.480 In other words, contract the supply, because at 487, the British goods are much more expensive in terms of all other products. 103 00:13:22.480 --> 00:13:31.480 So in order to make the British goods competitive, they would have had to deflate the domestic price level down to whatever it is, the same proportion of math. 104 00:13:31.480 --> 00:13:36.480 It's kind of a nutty thing to do, because they could have gone back to the old standard of 320. 105 00:13:36.480 --> 00:13:43.480 We've thrown in the towel and said, okay, we recognize reality, we go back to the gold standard and the devalued pound, 106 00:13:43.480 --> 00:13:46.480 but they felt their prestige was at stake and they couldn't afford to do that. 107 00:13:46.480 --> 00:13:53.480 Also, some of the bondholders in England were assisting on getting their speculative profits. 108 00:13:53.480 --> 00:13:59.480 In other words, you buy a pound at 320, hold on to them, they go up to 487, they're worth a lot more. 109 00:13:59.480 --> 00:14:04.480 So with the combination of economic vested interest of the financial accreditors, 110 00:14:04.480 --> 00:14:07.760 the banker, creditor, bondholder types 111 00:14:07.760 --> 00:14:13.400 along with the view of the British prestige and reestablishing the financial dominance of London 112 00:14:13.400 --> 00:14:16.480 required going back to 487 113 00:14:16.480 --> 00:14:20.620 essentially they did something like that after the Napoleonic wars of 1819 114 00:14:20.620 --> 00:14:22.500 but they only went back by 115 00:14:22.500 --> 00:14:25.580 they only had about 10% to go instead of about 30% 116 00:14:25.580 --> 00:14:29.180 and also in those days prices could fall, there were no unions, there was no 117 00:14:29.180 --> 00:14:30.840 inflationary policy 118 00:14:30.840 --> 00:14:33.480 permanent inflationary policy would keep prices up 119 00:14:33.480 --> 00:14:38.040 Britain in the 1920s had very strong unions by this time 120 00:14:38.040 --> 00:14:42.800 and also the union wage rate structure was held up largely by a vast 121 00:14:42.800 --> 00:14:48.000 system of unemployment insurance, the English have put in around World War I 122 00:14:48.000 --> 00:14:51.600 which gave almost unlimited benefits at almost 123 00:14:51.600 --> 00:14:55.840 worker wage rates. In other words, if you got unemployed, you get 124 00:14:55.840 --> 00:15:00.420 huge unemployment insurance, huge payments, which keep them 125 00:15:00.420 --> 00:15:02.680 permanently unemployed. In other words, 126 00:15:02.680 --> 00:15:06.600 the union wage rate structure way above free market wage rates 127 00:15:06.600 --> 00:15:09.080 so in that kind of an atmosphere 128 00:15:09.080 --> 00:15:12.520 the English government, if they wanted to deflate, they started with the idea 129 00:15:12.520 --> 00:15:14.680 we have to go back to OSAN at 487 130 00:15:14.680 --> 00:15:18.080 then they would have to do with the deflate, they weren't prepared to do that 131 00:15:18.080 --> 00:15:22.400 in fact they wanted to keep inflating, because they liked the idea of cheap credit 132 00:15:22.400 --> 00:15:25.000 keep union wage rates high 133 00:15:25.000 --> 00:15:30.340 so here they insisted on inflating at a time when their whole position would have required them to deflate very heavily 134 00:15:30.340 --> 00:15:34.860 and that kind of, given those assumptions, they bring you a tactical job 135 00:15:34.860 --> 00:15:38.740 of trying to work within these two crazy assumptions 136 00:15:38.740 --> 00:15:43.700 basically what they try to do is force the other countries to go back to the gold standard 137 00:15:43.700 --> 00:15:48.280 at a overvalued, whatever it is, pingo, bullgar, whatever the currencies are 138 00:15:48.280 --> 00:15:53.020 England was essentially running Europe after World War I through the League of Nations, which it controlled 139 00:15:53.020 --> 00:15:56.500 and the financial committee of the League of Nations, which was staffed by Bank of England 140 00:15:56.500 --> 00:15:59.400 and Bank of England types 141 00:15:59.400 --> 00:16:12.400 So they forced these other countries, they twisted their arm to go back, to set up the central bank in each country, and to inflate, and also to overvalue the exchange rate of these countries, so to stimulate British exports and restrict imports into Britain. 142 00:16:12.400 --> 00:16:17.400 They couldn't do that with the United States, the United States was much too powerful, they couldn't force us to do anything. 143 00:16:17.400 --> 00:16:24.400 So with the United States, which was on a gold, the idea, the other thing they did is they set up a gold exchange standard, set up a gold standard, 144 00:16:24.400 --> 00:16:31.400 whereby these other countries were encouraged to pyramid on top of gold and on top of pounds sterling 145 00:16:31.400 --> 00:16:36.400 so that whenever they keep their sterling balances and don't cash them in in London, don't cash them in for gold 146 00:16:36.400 --> 00:16:42.400 even though London was technically on a gold standard, everybody was encouraged to keep on the pound standard 147 00:16:42.400 --> 00:16:47.400 the result was that Britain pyramided pounds on top of gold, kept inflating 148 00:16:47.400 --> 00:16:54.400 In the old days, they would have lost pounds to France and Germany and whatever, Bulgaria, etc. 149 00:16:54.400 --> 00:16:57.400 They would have lost gold on them because pounds would have piled up. 150 00:16:57.400 --> 00:17:00.400 They would have called upon England for redemption. 151 00:17:00.400 --> 00:17:04.400 Now they didn't call upon England for redemption. They kept sterling balances, in other words, pound balances. 152 00:17:04.400 --> 00:17:12.400 They pyramid it on top of that. Each of these countries were encouraged to pyramid the Pango, the Bulgar, whatever the names are, on top of pounds. 153 00:17:12.400 --> 00:17:19.240 had a very top-heavy inflationary structure during the 20s, the United States was on gold, 154 00:17:19.240 --> 00:17:24.400 so the permanent top of dollars on gold, the United States was on gold, it was important 155 00:17:24.400 --> 00:17:29.920 then for the British to avoid losing, the British began to lose gold to the United States 156 00:17:29.920 --> 00:17:33.800 and France, France refused to go along with this either after the mid-20s, France went 157 00:17:33.800 --> 00:17:39.260 back to the gold standard on a not devalued, on a regular flank, so Britain started losing 158 00:17:39.260 --> 00:17:50.940 The game of the United States was to try to induce the United States to inflate itself 159 00:17:50.940 --> 00:17:53.500 to keep Britain from losing gold to it. 160 00:17:53.500 --> 00:17:57.180 To inflate it parallel with the British, and this is what we did. 161 00:17:57.180 --> 00:18:01.500 Benjamin Strong, the head of the Federal Reserve system, the governor of Federal Reserve back 162 00:18:01.500 --> 00:18:06.260 in New York, then the president of the Federal Reserve in New York, had a secret deal with 163 00:18:06.260 --> 00:18:12.940 Norman, who was the head of the Bank of England, had a strong Norman connection. They would 164 00:18:12.940 --> 00:18:17.580 visit each other a lot. They'd go under a few names to the Riviera and to Saratoga, 165 00:18:17.580 --> 00:18:23.500 which in those days was a big spa, summer resort. They had secret conferences, the brunt 166 00:18:23.500 --> 00:18:27.420 of which was the United States should inflate. The United States should pump money and credit 167 00:18:27.420 --> 00:18:32.220 in. So it was to inflate lower interest rates in the United States, inflate prices and keep 168 00:18:32.220 --> 00:18:39.900 The British Losing Gold, we did that three times in 1921, 1924, 1927, giving a strong 169 00:18:39.900 --> 00:18:45.980 set of coups de whiskies to the stock market to keep it going, keep it bubbling. 170 00:18:45.980 --> 00:18:53.460 Strong and Norman, as strong as we know as a Morgan ambit all of his life, Montague Norman 171 00:18:53.460 --> 00:19:03.900 Norman was heavily Morgan-connected and Norman was a, himself grew up, his mother and father 172 00:19:03.900 --> 00:19:10.260 were both old-time banking families, his mother was connected with the Brown Brothers family 173 00:19:10.260 --> 00:19:14.660 which is now Brown Brothers Harem and the big Wall Street banking firm, he himself worked 174 00:19:14.660 --> 00:19:20.820 in New York, Norman, as a youth at the Brown Brothers Institution, so these were all very 175 00:19:20.820 --> 00:19:25.440 closely connected. Of course, the Morgans were the fiscal agents of the Bank of England. 176 00:19:25.440 --> 00:19:30.320 So we had a strong Morgan connection between strong and Norman. 177 00:19:30.320 --> 00:19:31.760 There was a lot of 178 00:19:31.760 --> 00:19:35.100 some historians are claiming there was some kind of peculiar psychological bond between 179 00:19:35.100 --> 00:19:36.300 strong and Norman. 180 00:19:36.300 --> 00:19:38.380 To have a psychosexual bond, 181 00:19:38.380 --> 00:19:43.500 my contention is you don't have to question anything of this because the Morgan tie was enough. 182 00:19:43.500 --> 00:19:46.860 It was enough to bind them. Anyway, the result of all this was to keep 183 00:19:46.860 --> 00:19:50.760 money inflated, have a phony gold standard, more or less. 184 00:19:50.760 --> 00:19:52.760 especially for Europe 185 00:19:52.760 --> 00:19:57.080 and the result of a final collapse as the whole thing 186 00:19:57.080 --> 00:19:58.760 came toppling down 187 00:19:58.760 --> 00:20:00.040 with 188 00:20:00.040 --> 00:20:02.600 unsound investments, with calls upon the 189 00:20:02.600 --> 00:20:06.420 banks of the United States for redemption, bank failures and all the rest of it. 190 00:20:06.420 --> 00:20:12.760 And during the Great Day, and by the way, in 1931 when the banking crisis hit Europe 191 00:20:12.760 --> 00:20:16.080 big banks began to fail because old banks are inherently bankrupt. 192 00:20:16.080 --> 00:20:18.520 Old banks are fractional reserve banks and really 193 00:20:18.520 --> 00:20:20.520 can be doomed at any moment. 194 00:20:20.520 --> 00:20:30.520 When they began to fail that time, the British, having pushed everybody off into this wacko system, which overinflated, went off the gold standard very quickly at a very low interest rate. 195 00:20:30.520 --> 00:20:38.520 After telling everybody else, I'll never go back, off the gold standard, please keep your sterling malices in London, suddenly one find eight, they're out of it, they're off it. 196 00:20:38.520 --> 00:20:43.520 Thereby precipitating a general European financial crisis which lasted through World War II. 197 00:20:43.520 --> 00:20:49.680 So we have a point that everybody is now off the gold standard, all currencies were fluctuating 198 00:20:49.680 --> 00:20:56.120 in fiat but also controlled, controlled exchange rates, competitive devaluation to try to push 199 00:20:56.120 --> 00:21:01.200 your exports and prevent the other guy's imports, what was known as beggar your neighbor policies, 200 00:21:01.200 --> 00:21:08.120 it came to the favor of it, it's a pretty good description of European currency blocks 201 00:21:08.120 --> 00:21:14.920 during the 1930s. The United States went off the gold standard in 1933, except for international 202 00:21:14.920 --> 00:21:21.920 payments, domestic accounts that went basically off it. So we have a world of currency blocks, 203 00:21:21.920 --> 00:21:27.280 tariffs, high tariffs and all the rest of it, economic warfare all during the 30s. Part 204 00:21:27.280 --> 00:21:32.160 of the major, one of the major reasons for the war was Germany, between the United States, 205 00:21:32.160 --> 00:21:37.800 England and Germany, was economic and financial. All these countries had devalued, in other 206 00:21:37.800 --> 00:21:45.800 In other words, England went off to go down the value of the pound, the United States devalued the dollar from 120th to 135th of the gold amount. 207 00:21:45.800 --> 00:21:49.800 Germany couldn't devalue, politically impossible for them to devalue. 208 00:21:49.800 --> 00:21:59.800 Germany had a runaway inflation in 1923 as a result of continuing expansion of the money supply, creation of bank money and paper money. 209 00:21:59.800 --> 00:22:03.800 And the German public blamed the foreign exchange market. 210 00:22:03.800 --> 00:22:13.800 The German public saw that the foreign exchange market was collapsing. Prices of foreign exchange were going down faster than the domestic price. 211 00:22:13.800 --> 00:22:26.800 So that, you know, it got to the point where one mark was, took, let's say, 100 million marks to buy a loaf of bread domestically, but it took a billion marks to buy a franc or something like that, or a dollar. 212 00:22:26.800 --> 00:22:56.800 The German public, instead of blaming the bank, the reason why the foreign exchange was going down faster, was getting inflating faster. The domestic was very simple. Namely, the foreign exchange market was speculated, they were looking into the future, they seeded, anticipating further inflation. So they were on the cutting edge of this kind of anticipation. So foreign exchange prices were being made very flexible and very quick and so forth, and foreseeing, anticipating inflation better than domestic producers, domestic consumers. 213 00:22:56.800 --> 00:23:03.800 But, unfortunately, the Germans blamed the foreign exchange market for something evil about foreign exchange speculators that caused this inflation. 214 00:23:03.800 --> 00:23:12.800 So, therefore, when the Depression hit 1933, 30, 30, 31, 31, 32, 33, it was politically impossible for any German government to devalue the mark. 215 00:23:12.800 --> 00:23:16.800 It was also politically impossible to go back to the gold standard. They didn't even think of those terms. 216 00:23:16.800 --> 00:23:21.800 Nobody was on the gold standard anymore. It was considered neanderthal, reactionary and all that. 217 00:23:21.800 --> 00:23:25.800 The United States and England began to get hysterical very quickly. 218 00:23:25.800 --> 00:23:30.800 This was already in the Bruning administration before Hitler took over. 219 00:23:30.800 --> 00:23:35.800 The Bruning administration in 1932, before it began, and also when Hitler took over, 220 00:23:35.800 --> 00:23:41.800 began to get totally hysterical about this, about the fact that Germany was opting out of the international monetary system. 221 00:23:41.800 --> 00:23:46.800 In other words, opting out of control by international bankers, financiers and all the rest of it. 222 00:23:46.800 --> 00:23:55.680 They also claimed Germany was exploiting these countries by engaging in these barter deals. 223 00:23:55.680 --> 00:24:00.320 None of this is, all of this is ridiculous. What actually was going on was that Germany 224 00:24:00.320 --> 00:24:06.120 was engaging, both Germany and Romania had overvalued currency. Germany had overvalued 225 00:24:06.120 --> 00:24:13.880 Mark and Romania had overvalued whatever the Romanian currency is, the Pengo. As a result, 226 00:24:13.880 --> 00:24:21.560 Well, it was a complex deal by which the German taxpayer, a consumer, was subsidizing German 227 00:24:21.560 --> 00:24:27.760 exports, manufactured goods, and the Romanians were subsidizing their exports, which were 228 00:24:27.760 --> 00:24:34.480 the wheat farmers, each one subsidizing their own exports at the expense of their domestic 229 00:24:34.480 --> 00:24:35.480 consumers. 230 00:24:35.480 --> 00:24:41.280 So it was an elaborate deal by which both sets of exporters were favored at the expense 231 00:24:41.280 --> 00:24:48.280 at any rate, this began a whole series of war-like kind of attacks, and also Secretary 232 00:24:58.640 --> 00:25:03.640 Hull when the war began, when we entered the war in 1941, shortly after that, Secretary 233 00:25:03.640 --> 00:25:10.080 Hull said flat out, he said many times, the real cause of World War II is economic, in 234 00:25:10.080 --> 00:25:17.580 In other words, trade barriers, financial barriers, currency blocks, and so those countries 235 00:25:17.580 --> 00:25:23.080 which had the same currency blocks wound up on the same side of the war. 236 00:25:23.080 --> 00:25:32.400 So what happens then in the 1930s, as Hoover launches a new deal, in 1939, when the Depression 237 00:25:32.400 --> 00:25:36.880 started, Hoover was the first new dealer, which you read in textbooks. 238 00:25:36.880 --> 00:25:42.280 Everything that Franklin D. Roosevelt did, every measure was initiated by Hoover, expanding 239 00:25:42.280 --> 00:25:49.760 public work, deficits, cheap credit, keeping wage rates up by government pressure, bailing 240 00:25:49.760 --> 00:25:56.040 out the bankrupt, the phased out bankrupt industry through the government lending, Reconstruction 241 00:25:56.040 --> 00:26:03.520 Finance Corporation, high tariffs to keep out imports, farm price support, the whole 242 00:26:03.520 --> 00:26:06.680 Law and Policy Program, and it begins with Hoover. 243 00:26:06.680 --> 00:26:08.520 Yeah, it's the New Deal. 244 00:26:08.520 --> 00:26:09.960 Right. 245 00:26:09.960 --> 00:26:12.960 Roosevelt simply expanded. 246 00:26:12.960 --> 00:26:21.960 What happened was that the businessmen like Swope and Baruch, 247 00:26:21.960 --> 00:26:26.840 et cetera, who wanted, asking for official cartelization 248 00:26:26.840 --> 00:26:30.200 system ever since World War I, now put pressure on Hoover 249 00:26:30.200 --> 00:26:37.200 and so forth, which was the so-called Float Plan in 1932. 250 00:26:37.200 --> 00:26:40.200 And the thing is, Huber was really launching the whole thing. 251 00:26:40.200 --> 00:26:42.200 He was one of the pioneers in corporatism. 252 00:26:42.200 --> 00:26:44.200 He felt this went too far. 253 00:26:44.200 --> 00:26:46.200 He said, no, they have to make a formal system 254 00:26:46.200 --> 00:26:48.200 and force all firms in the trade association 255 00:26:48.200 --> 00:26:50.200 and force them to keep their agreements. 256 00:26:50.200 --> 00:26:52.200 This is too much, too extreme. 257 00:26:52.200 --> 00:26:54.200 He said, by God, that's fascism. 258 00:26:54.200 --> 00:26:56.200 It took him a long time to figure that out. 259 00:26:56.200 --> 00:26:58.200 Of course, it was. 260 00:26:58.200 --> 00:27:05.520 At that point, the big business pipes in the United States, the Chamber of Commerce, told Hoover directly, 261 00:27:05.520 --> 00:27:10.200 if you don't support this NRA program, we'll shift our support to Roosevelt, and then he said, I'm sorry, it's a fascism. 262 00:27:10.200 --> 00:27:18.800 They did shift his support to Roosevelt, and as soon as Roosevelt came in, he put the Swope Plan in on the form of the National Recovery Administration, NRA. 263 00:27:18.800 --> 00:27:30.800 With Roosevelt, we have a group of people who are, the Hyde Park Roosevelt, which were close to the Astors and Harriman, particularly the Astor family. 264 00:27:30.800 --> 00:27:40.800 Remember the Western Bay Roosevelt, from which Teddy Roosevelt comes from, was close to the Morgan, the Hyde Park Roosevelt was close to the Astor family. 265 00:27:40.800 --> 00:27:47.800 As a matter of fact, the Roosevelt and Astors were closely related to each other. 266 00:27:47.800 --> 00:27:53.800 The Astors were the first wealthy family in the United States virtually. 267 00:27:53.800 --> 00:27:59.800 John Jacob Astor became a firm millionaire from the fur trade around 1820, 268 00:27:59.800 --> 00:28:02.800 and then invested their money in New York real estate, 269 00:28:02.800 --> 00:28:07.800 so that they were probably the oldest living wealthy family. 270 00:28:07.800 --> 00:28:13.380 At any rate, Franklin Roosevelt's half-brother, James Roosevelt, married a daughter of the 271 00:28:13.380 --> 00:28:19.600 Mrs. William Astor, who was running society here in New York for many years, and Warren 272 00:28:19.600 --> 00:28:27.000 Delano, who was Roosevelt's, FDR's grandfather's brother, Franklin Delano, in other words, 273 00:28:27.000 --> 00:28:32.760 the grand-uncle from whom Franklin Roosevelt was named, Franklin Delano, had married William 274 00:28:32.760 --> 00:28:33.760 Astor's sister. 275 00:28:33.760 --> 00:28:37.760 So we had a very close family connection between the Astors and the Roosevelts. 276 00:28:39.760 --> 00:28:48.760 And it also turns out that Vincent Astor, not only a relative of Franklin D. Roosevelt but a close friend, 277 00:28:48.760 --> 00:28:54.760 who also happened to be chairman of the board, excuse me, a member of the board of the Chase National Bank, 278 00:28:54.760 --> 00:28:58.760 which used to be Morgan. 279 00:28:58.760 --> 00:29:05.680 However, in 1930, Rockefeller interest executed a coup d'etat, so to speak. 280 00:29:05.680 --> 00:29:11.200 Chase Bank merged with the bank of the Equitable Trust Company, which is Rockefeller, and because 281 00:29:11.200 --> 00:29:16.600 of that, the Rockefeller was able to seize control of Chase Bank in 1930, after which 282 00:29:16.600 --> 00:29:19.680 became the top Rockefeller bank. 283 00:29:19.680 --> 00:29:23.120 Albert Wiggin had been the chairman of the board of Chase National Bank, who was a Morgan 284 00:29:23.120 --> 00:29:24.120 person. 285 00:29:24.120 --> 00:29:27.000 As soon as the Rockefellers took over, they deposed Wiggin, about a year later, and they 286 00:29:27.000 --> 00:29:36.000 and they put in Richard W. Aldrich, who was the son of Milton Aldrich and of course cousin of John D. Rockefeller Jr. 287 00:29:36.000 --> 00:29:43.000 So this symbolizes the shift. Anyway, Vincent Astor was on the board. 288 00:29:43.000 --> 00:29:54.000 So what we had during the 30s was we had a Roosevelt-Astor connection and also an Astor-Rockefeller connection and also a Roosevelt-Rockefaller connection. 289 00:29:54.000 --> 00:30:04.000 So we have a general alliance between the Rockefellers and Roosevelt and the Astors, and the Harrimans, another very important democratic family 290 00:30:04.000 --> 00:30:15.000 who are also close neighbors of the Astors up in, I guess it's Rockland County, it's not Rockland County, it's the county north of Rockland, or just around there. 291 00:30:15.000 --> 00:30:17.840 and 292 00:30:17.840 --> 00:30:21.200 so the Harrimans, W. Averell Harriman, son of 293 00:30:21.200 --> 00:30:23.800 the original Harriman, E. H. Harriman 294 00:30:23.800 --> 00:30:26.760 the extremely important figure has been overlooked 295 00:30:26.760 --> 00:30:28.880 by historians and analysts 296 00:30:28.880 --> 00:30:32.040 and he was a good friend of Franklin Roosevelt 297 00:30:32.040 --> 00:30:35.640 he was probably the most influential financial person 298 00:30:35.640 --> 00:30:38.840 and of course the Harrimans and Rockefellers and Kuhn-Loeb have been allied since 299 00:30:38.840 --> 00:30:42.640 1900, 1902 and still were in this period 300 00:30:42.640 --> 00:30:43.660 so we had a Harriman 301 00:30:43.660 --> 00:30:45.460 and the Rockefeller-Aster connection. 302 00:30:47.140 --> 00:30:52.140 Harriman was a head of the Business Advisory Council 303 00:30:55.300 --> 00:30:59.820 which was set up in 1933, as soon as those votes get in. 304 00:30:59.820 --> 00:31:02.500 Business Advisory Council of the Department of Commerce 305 00:31:02.500 --> 00:31:05.580 to be sort of a major institutional instrument 306 00:31:05.580 --> 00:31:10.460 for big business influence in this advisory council. 307 00:31:10.460 --> 00:31:19.700 Hiram was also, he was on the Board of Directors of Bank of Manhattan Company, which is CUNLOA, 308 00:31:19.700 --> 00:31:26.300 but again we have the famous Hiram and CUNLOA connection, and they ran the Bank of Manhattan 309 00:31:26.300 --> 00:31:33.260 many years. The Chase National Bank later in the 50s or 60s became the Chase Manhattan 310 00:31:33.260 --> 00:31:39.260 and thereby symbolizing a union between Rockefeller and Kuhn-Lohab interests. 311 00:31:39.260 --> 00:31:45.260 Harriman is also a close friend of Percy Rockefeller, the son of William Rockefeller. 312 00:31:45.260 --> 00:31:50.260 In other words, he has a Harriman, Rockefeller, Kuhn-Lohab astral connection. 313 00:31:50.260 --> 00:31:59.260 Harriman and Franklin Roosevelt have been close friends since childhood. 314 00:31:59.260 --> 00:32:07.260 And Eleanor Roosevelt, the wife of Franklin D. Roosevelt, had been an old friend of Harriman and Harriman's sister for life. 315 00:32:07.260 --> 00:32:15.260 So they had a very close interconnection with all these people, financial and relative, relational and personal. 316 00:32:15.260 --> 00:32:21.260 Another important group that comes up by the late 1920s, 317 00:32:21.260 --> 00:32:36.260 In addition to Kuhn-Loeb, who in the old days originally was about the only important German-Jewish Wall Street investment bankers, coming out in the late 20s are two other very important firms which are also related in many ways to the Kuhn-Loeb people. 318 00:32:36.260 --> 00:32:45.260 Amy Goldman Sachs, the main partner of Goldman Sachs has cooperated with Sidney J. Weinberg 319 00:32:45.260 --> 00:32:49.260 and becomes one of the most powerful people for the next 30 years. 320 00:32:49.260 --> 00:32:53.260 Weinberg had the idea of setting up the Business Advisory Council. 321 00:32:53.260 --> 00:32:57.260 Weinberg, I believe, was Deputy Director of the War Production Board in World War II 322 00:32:57.260 --> 00:33:01.260 and also Deputy Director of the War Production Board during the Korean War. 323 00:33:01.260 --> 00:33:11.260 He was more or less helping to run the system from the early 30s until through the 50s, at least. 324 00:33:11.260 --> 00:33:16.260 He was on the board of directors of that Brazilian top corporation. 325 00:33:16.260 --> 00:33:21.260 And also in Ford Motor Company, the old man died after World War II. 326 00:33:21.260 --> 00:33:27.260 His son, Etzel Ford, died shortly thereafter, or even maybe before Henry. 327 00:33:27.260 --> 00:33:34.260 Henry IV II, now fairly elderly, took over as the brilliant young chairman of the board of Ford 328 00:33:34.260 --> 00:33:37.260 and after that they capitulated the banker interest. 329 00:33:37.260 --> 00:33:41.260 Ford always hated Wall Street bankers and they kept the Ford Motor Company. 330 00:33:41.260 --> 00:33:47.260 Not only running it personally, but also keeping it free of banker control. 331 00:33:47.260 --> 00:33:53.260 Henry IV II didn't have that kind of view and so they sold out of the Wall Street. 332 00:33:53.260 --> 00:33:59.260 C4 was originally a private corporation, it was family held. 333 00:33:59.260 --> 00:34:05.260 And so Henry IV II went public, realized of course a lot of money for his family, 334 00:34:05.260 --> 00:34:08.260 because he was selling shares to the public. 335 00:34:08.260 --> 00:34:16.260 In the process, using Goldman Sachs and Weinberg as their major investment banker to float the sale. 336 00:34:16.260 --> 00:34:24.260 The other big German Jewish firm coming up was the Lehman Brothers, 337 00:34:24.260 --> 00:34:31.260 one of whose senior partner, Herbert H. Lehman, became governor in New York 338 00:34:31.260 --> 00:34:36.260 during the famous New Deal governor in New York in the 1930s. 339 00:34:36.260 --> 00:34:45.260 So what you have is a shift of power. You notice one group I haven't mentioned in this last 5-10 minutes, 340 00:34:45.260 --> 00:35:15.260 And that's mainly the Morgans. Where are the Morgans in all this? Well, the Morgans are sort of out, and as a matter of fact, when it looked like Roosevelt was going to be nominated by the Democratic Party in 1932, the Morgans organized a last-minute stop Roosevelt movement on behalf of Newton D. Baker, who was the Secretary of War under Wilson, to try to stop it. They didn't trust Roosevelt. Obviously, Roosevelt was allied with the Rockefeller-Harriman people, not with the Morgans. 341 00:35:15.260 --> 00:35:45.260 The people who organized this thing at the convention were Morgan people, Owen Young, Chairman of General Electric and Morgan Company, Melvin Traylor, President of the First National Bank of Chicago and Morgan Bank, and also General Electric, Thomas W. Lamont, Morgan Partner, all these guys were desperately trying to stop Roosevelt in 1932, and John W. Davis, who was a Democrat and nominated in 1924 as a Morgan lawyer, and Robert Woodruff, who should be mentioned here in passing, 342 00:35:45.260 --> 00:35:54.260 Robert W. Woodruff was the founder of Coca-Cola Company, or the founder of the modern Coca-Cola Company. 343 00:35:54.260 --> 00:36:00.260 And Woodruff becomes Mr. Coca-Cola. 344 00:36:00.260 --> 00:36:07.260 At the age of 85, he was still active, I think he just died a few years ago, he was still active at the age of 85. 345 00:36:07.260 --> 00:36:14.260 Woodruff essentially discovered or approved the idea of Jimmy Carter as the presidential nominee. 346 00:36:14.260 --> 00:36:19.620 So they try to stop Roosevelt without success. When the New Deal came in, there were some 347 00:36:19.620 --> 00:36:25.580 Morgan people in it, but they were unhappy with the nationalist monetary policies of Roosevelt. 348 00:36:25.580 --> 00:36:30.780 They wanted a London economic conference to have a worldwide financial agreement to try 349 00:36:30.780 --> 00:36:37.020 to do something about the currency blocs. Roosevelt torpedoed it. At that point, two 350 00:36:37.020 --> 00:36:41.140 of the major Morgan people quit the administration. Dean Acheson, who was a disciple of Henry 351 00:36:41.140 --> 00:36:51.140 Louis Simpson was a Morgan person, Louis W. Douglas, another Morgan person quit and only came back when World War II started and there was a mighty coalition between all these forces. 352 00:36:51.140 --> 00:37:01.140 By 1935, Morgan was believing that the Roosevelt was going too far in corporate state doctrine, just like Hoover was believing he was going too far. 353 00:37:01.140 --> 00:37:08.140 Along with the Hoover people formed an organization called the American Liberty League, which opposed the New Deal. 354 00:37:08.140 --> 00:37:17.140 If you analyze Liberty, they were pretty moderate in the sense that they weren't in favor of going back or on to laissez-faire, they thought that Roosevelt was being too extreme. 355 00:37:17.140 --> 00:37:24.140 Their man, Alf Landon, was smashed in the 1936 election and that sort of killed the Liberty League. 356 00:37:24.140 --> 00:37:33.140 What you had also with the Roosevelt election in 1932 was the end of the fourth party system. 357 00:37:33.140 --> 00:37:49.140 Remember, the fourth party system came in around 1896 and 1900, where the parties were no longer different ideologically after about 1900, and the Republicans were dominant. 358 00:37:49.140 --> 00:37:59.140 And the Republicans won every election except 1912, where the progressives split the Republican Party, and in 1916, where Wilson was just barely re-elected. 359 00:37:59.140 --> 00:38:29.140 In 1932, because of the Depression, and also because of Prohibition, what happened, by the way, I forgot to mention it, well maybe I did mention it, Prohibition came in finally under the cover of the war, World War I and continued on from then on, the Republican Party was committed to it by that time, and the Southern Democrats, the Northern Democrats of course and the Urban Democrats very much against it, Roosevelt pledged to repeal it, and as soon as Roosevelt gets in, he pushes through the constitutional amendment repealing the 360 00:38:29.140 --> 00:38:31.140 The Prohibition Amendment 361 00:38:31.140 --> 00:38:36.140 And with the Great Depression and with the Peel Prohibition, there's a big shift in the political party system. 362 00:38:36.140 --> 00:38:39.140 The fourth political party system comes in. 363 00:38:39.140 --> 00:38:43.140 Now, let's see. This was the fourth. 364 00:38:43.140 --> 00:38:47.140 And the fifth comes in. 365 00:38:47.140 --> 00:38:52.140 The fifth party system comes in, but the Democrats are the majority party. 366 00:38:52.140 --> 00:38:57.140 And the Republicans are now only winning with Eisenhower, 367 00:38:57.140 --> 00:39:04.140 and only winning Congress for about four years, House of Representatives and Congress only for about four years from then on. 368 00:39:04.140 --> 00:39:13.140 We then get a Democratic majority party, the South plus urban Catholics, and essentially the basis of a coalition. 369 00:39:13.140 --> 00:39:20.140 This continued until recently. Right now we're probably in a six-party system, because right now we're probably in the last ten years or so. 370 00:39:20.140 --> 00:39:33.140 The dimensions of which are not yet clear, but basically it seems to be in a situation where the Democrats win the House and the Republicans win the presidential elections. 371 00:39:33.140 --> 00:39:41.140 And very few people are party members, and we have a huge number of independents, floating voters, probably also because of the influence of television where people vote. 372 00:39:41.140 --> 00:39:46.140 I mean, first of all, it hasn't been any really ideological difference for a long, long time, since 1896. 373 00:39:46.140 --> 00:39:52.140 And second of all, with television and everything, there's much fewer party membership. 374 00:39:52.140 --> 00:40:02.140 The parties have been tremendously weakened, especially by the alleged reforms in the 1960s and early 70s. 375 00:40:02.140 --> 00:40:09.140 So almost every party has primaries and possibly any kind of ideology in any party. 376 00:40:09.140 --> 00:40:12.140 So it's all sort of TV. The parties mean almost nothing. 377 00:40:12.140 --> 00:40:42.140 That's one of the reasons why the famous thing that happened in the Illinois Democratic primary a few months ago when the LaRouche's won the Nutty cult, won the lieutenant governor and secretary of state post in the Democratic primary, embarrassing the Democrats enormously because the party systems, the party machines almost don't exist, but you have a sort of coalition of a bunch of crooks really with no kind of ideological difference. 378 00:40:42.140 --> 00:40:47.140 So we have a mass of floating independent voters, and therefore many things more or less up for grabs. 379 00:40:50.140 --> 00:41:04.140 In the 1930s, as things developed, the Morgans began, as the usual, to try to alliance themselves with France and England to try to crush Germany, as in World War I. 380 00:41:04.140 --> 00:41:10.140 The Rockefellers were not interested in war with Germany. They were interested in war with Japan. 381 00:41:10.140 --> 00:41:40.140 The Japanese were expanding far east, and the Rockefellers of Standard Oil were interested in oil and in rubber, rubber and oil in Southeast Asia, both were trying to expand into Southeast Asia, actually into Vietnam, as I've announced to, and in China, there was a famous incident in 1937 I believe, a Panay incident, where the Japanese sank a Rockefeller gunboat, I mean a Rockefeller tanker, I think it was an armed tanker I believe, 382 00:41:40.140 --> 00:41:43.660 and the Panay, up the Yangtze River, way up the Yangtze River. 383 00:41:43.660 --> 00:41:46.300 The question is, what was the Rockefeller Sun boat doing 384 00:41:46.300 --> 00:41:47.140 up the Yangtze River? 385 00:41:47.140 --> 00:41:48.300 Interesting question. 386 00:41:48.300 --> 00:41:50.540 Anyway, it was the biggest theory about that. 387 00:41:50.540 --> 00:41:53.140 And so what you had then is a movement for many years 388 00:41:53.140 --> 00:41:54.900 while the Morgans were getting into war against Germany 389 00:41:54.900 --> 00:41:57.500 and for the Rockefellers getting into war against Japan. 390 00:41:58.900 --> 00:42:00.540 So for example, in the State Department, 391 00:42:00.540 --> 00:42:04.140 the main force for trying to work out a peace with Japan 392 00:42:04.140 --> 00:42:06.140 was Ambassador to Japan Joseph C. Groove, 393 00:42:06.140 --> 00:42:08.180 who was a Morgan partner. 394 00:42:08.180 --> 00:42:12.100 The Rockefellers in Europe were in a sense allied with Germany. 395 00:42:12.100 --> 00:42:15.660 They had cartel arrangements with IG Farben, 396 00:42:15.660 --> 00:42:17.380 patent sharing agreements and so forth. 397 00:42:17.380 --> 00:42:20.980 So they tended to be against any intervention in Europe. 398 00:42:20.980 --> 00:42:25.460 John Foster Dulles, a stand-alone lawyer, 399 00:42:25.460 --> 00:42:28.220 probably the major stand-alone lawyer by the 30s, 400 00:42:28.220 --> 00:42:30.660 wrote a book in 1940 called War, Peace, and Change, 401 00:42:30.660 --> 00:42:33.100 in which he said that we should look 402 00:42:33.100 --> 00:42:37.140 at German territorial demands in Europe, 403 00:42:37.140 --> 00:42:54.140 The Morgans and the Rockefellers once again come into a mighty coalition. The Morgans get their war in Europe and the Rockefellers get their war in Asia. Both sides are happy. 404 00:42:54.140 --> 00:42:59.400 So we have a mighty coalition with the Morgans pouring back into the administration shouting 405 00:42:59.400 --> 00:43:08.400 hallelujah to the state, Simpson becomes secretary of war and Atchison becomes assistant secretary 406 00:43:08.400 --> 00:43:15.520 of state, Nelson Rockefeller becomes assistant secretary of state in charge of Latin American 407 00:43:15.520 --> 00:43:23.520 affairs and so we have a mighty coalition with all these guys pouring back in and when 408 00:43:23.520 --> 00:43:28.320 When we emerged from World War II, we emerged with the Rockefellers as permanently dominant 409 00:43:28.320 --> 00:43:31.960 within this Eastern establishment. 410 00:43:31.960 --> 00:43:38.680 The oil has now become even more important than before, and from then on, we have a situation 411 00:43:38.680 --> 00:43:41.840 where the Rockefellers, Morgan is essentially junior partners with the Rockefellers. 412 00:43:41.840 --> 00:43:45.520 The Rockefellers take over the Council of Foreign Relations, which has been launched 413 00:43:45.520 --> 00:43:51.520 by the Morgans, and David Rockefeller, chairman of the board of the Chase Manhattan Bank until 414 00:43:51.520 --> 00:43:54.440 was very recently still in a dominant force, 415 00:43:55.480 --> 00:43:57.880 sets up a famous trilateral society 416 00:43:57.880 --> 00:44:02.360 as a method of having tripartite in the United States, 417 00:44:02.360 --> 00:44:04.440 Japan and Western Europe, 418 00:44:04.440 --> 00:44:05.720 agreement on economic policy 419 00:44:05.720 --> 00:44:08.600 which then gets pushed into the government. 420 00:44:08.600 --> 00:44:10.980 So we have to realize that Democratic and Republican parties 421 00:44:10.980 --> 00:44:11.820 mean nothing anymore. 422 00:44:11.820 --> 00:44:13.080 The question is which financial groups 423 00:44:13.080 --> 00:44:15.360 are behind which candidate? 424 00:44:15.360 --> 00:44:17.480 The parties are just hollow shells 425 00:44:18.400 --> 00:44:20.100 to be taken over, so to speak. 426 00:44:21.520 --> 00:44:29.520 The Eisenhower administration, for example, is Rockefeller straight through, as you can see by the Dulles brothers and sister running in foreign policy. 427 00:44:31.520 --> 00:44:38.520 Carter was a virtually creature of the Trilateral Commission, and therefore Rockefeller, since they were... 428 00:44:38.520 --> 00:44:42.520 We now have Rockefeller-Morgan alliance, no more running competition. 429 00:44:43.520 --> 00:44:46.520 Carter was an unknown governor of Georgia, nobody ever heard of him. 430 00:44:46.520 --> 00:44:53.520 How did he become a big political candidate? Really nobody heard of him until about January of 1976. 431 00:44:53.520 --> 00:44:57.520 He was elected in 1976. How did he get to be president? 432 00:44:57.520 --> 00:45:00.520 Well, he was discovered, they wanted a southern governor. 433 00:45:00.520 --> 00:45:03.520 They figured a southern governor would be a good thing to push now. 434 00:45:03.520 --> 00:45:07.520 And Terry Sanford was one possibility and Carter was another. 435 00:45:07.520 --> 00:45:14.520 Woodruff, head of, owner of Coca-Cola, and J. Paul Austin, chairman of Board of Coca-Cola, discovered Carter. 436 00:45:14.520 --> 00:45:20.520 He was in Georgia, actually he was not a peanut farmer, he was a peanut wholesaler, to be concrete and specific. 437 00:45:20.520 --> 00:45:27.520 His buddy, Bert Lantz, was in with the bankers, a Georgia banker, and they knew about him. 438 00:45:27.520 --> 00:45:31.520 He was liked by the Coca-Cola people, and they called him the attention of the Trilateral Commission. 439 00:45:31.520 --> 00:45:34.520 They introduced him to David Rockefeller, the Trilateral, and they liked him. 440 00:45:34.520 --> 00:45:37.520 They made him a member of the Trilateral Commission. 441 00:45:37.520 --> 00:45:39.520 There's only about 50 members in the United States. 442 00:45:39.520 --> 00:45:43.520 It's not exactly a common Gordon variety thing. 443 00:45:43.520 --> 00:45:52.520 Since the Tri-Lateral Commission was the only deal with foreign economic and political policy, they asked the people at the Tri-Lateral Commission, why did you pick Carter? 444 00:45:52.520 --> 00:45:58.520 Because he admitted he knew nothing about foreign policy, nothing at all. He only knew about Georgia peanuts. 445 00:45:58.520 --> 00:46:04.520 He talked about how wonderful the Tri-Lateral Commission was, how he learned everything he knew about foreign affairs from them. 446 00:46:04.520 --> 00:46:09.520 So they asked the Tri-Lateral Commission, why did you pick Carter? They said, well, we wanted the input of a southern governor on foreign affairs. 447 00:46:09.520 --> 00:46:24.520 The real reason obviously is they wanted somebody who they could groom for possible presidential choice and sure enough they figured it was good material and by late 75 they began pushing for president. 448 00:46:24.520 --> 00:46:33.520 The publisher of Time at the time, James A. Lennon, the fourth Time magazine, was a member of the trilateral commission and he put Carter on the cover at a time when nobody had heard of him. 449 00:46:33.520 --> 00:46:43.240 Carter boomed largely by trilateral members. When Carter gets in, as president, his entire 450 00:46:43.240 --> 00:46:49.760 cabinet from top to bottom, down to the middle level is all members of the Trilateral Commission. 451 00:46:49.760 --> 00:46:56.120 Considering there's only a few members, it's pretty remarkable. Carter himself was a trilateralist, 452 00:46:56.120 --> 00:47:02.280 Mondale, his vice president, was a trilateralist, Bigniew Wrzeczynski, the National Security 453 00:47:02.280 --> 00:47:08.380 The Secretary of State was a trilateralist, as was Kissinger, one of the Republicans. 454 00:47:08.380 --> 00:47:14.280 We have a tremendous difference there, that both Kissinger and Rodzinski were both trilateralists, 455 00:47:14.280 --> 00:47:17.720 and almost the same views on almost everything, the only difference being that Kissinger is 456 00:47:17.720 --> 00:47:25.040 German and Rodzinski is Polish, I guess that's the only fairly small difference. 457 00:47:25.040 --> 00:47:29.640 The head of the State Department, the Secretary of State was a trilateralist, Cyrus Vance, 458 00:47:29.640 --> 00:47:33.640 and almost all the people in the top level of the State Department. 459 00:47:33.640 --> 00:47:39.640 But the major differences now are between, not between Rockefellers and Morgan, 460 00:47:39.640 --> 00:47:44.640 but between the Eastern establishment, which is basically Rockefeller, 461 00:47:44.640 --> 00:47:48.640 which now covers the Northeast quadrant in the United States. 462 00:47:48.640 --> 00:47:51.640 In fact, it really covers the Southeast too. 463 00:47:51.640 --> 00:47:55.640 So it's, in other words, New York, Illinois, Michigan, 464 00:47:55.640 --> 00:48:01.480 and even Georgia would be part of the Eastern establishment at this point. 465 00:48:01.480 --> 00:48:04.320 This is one group, one financial and political group. 466 00:48:04.320 --> 00:48:10.040 The other big financial and political group is known as Southern Rim, which is headquartered 467 00:48:10.040 --> 00:48:16.560 in Los Angeles, Texas, and Florida, nearby Southern Rim. 468 00:48:16.560 --> 00:48:20.640 There are differences in style and differences in content, I think they're both more or less 469 00:48:20.640 --> 00:48:24.520 similar in views, basic political economic viewpoint. 470 00:48:24.520 --> 00:48:43.520 The Eastern Establishment has to be very cultured, it's old money, of course, they've gone to Groton and George Bush, for example, a beautiful example of that, even though, well, George Bush was really first a Texan oil man, but he was born in Connecticut. His father was a Connecticut senator and then moved to Texas, he's a peculiar combination of both. 471 00:48:43.520 --> 00:49:13.520 At any rate, these are established by people who are preppies, tend to be preppies, went to Yale or Princeton or Harvard, and also tend to buy their opponents out, use money power, they're familiar with this, they buy out Columbia, Harvard, the State Department, Kissinger, for example, is just a simple assistant professor, associate professor of Harvard before Nelson Rockefeller discovered him, and made Kissinger his foreign policy advisor on permanent payroll, even though he's only governor of New York. You wouldn't think that the governor of New York would need a foreign policy advisor. 472 00:49:13.520 --> 00:49:19.520 permanent foreign policy advisers, anyway, so essentially buying out Columbia, Harvard, etc. etc. 473 00:49:19.520 --> 00:49:24.520 setting up institutes for foreign relations or Russian studies institutes or whatever. 474 00:49:24.520 --> 00:49:30.520 These are established methods thereby to purchase co-optation of enemies. 475 00:49:30.520 --> 00:49:34.520 The Southern Rim, these are known as the Yankees. 476 00:49:34.520 --> 00:49:39.520 The Southern Rim, also known as the Cowboys, tend to be slightly more in favor of free markets. 477 00:49:39.520 --> 00:49:49.520 Market, not very much, slightly more in favor of war, international war, though not very much, and also tend to shoot their opposition rather than fire them out. 478 00:49:49.520 --> 00:49:58.520 Cowboys tend to be less in favor of intellectual opinion, less in favor of free speech, more in favor of shooting the opposition, sort of a cowboy type. 479 00:49:58.520 --> 00:50:07.520 That's why I think Yankees are cowboys, a great term for these people. Lyndon Johnson was the quintessential cowboy, as would be John Connolly of Texas. 480 00:50:07.520 --> 00:50:12.520 Nixon came from Los Angeles, makes him a cowboy. Reagan came from Los Angeles, makes him a cowboy. 481 00:50:12.520 --> 00:50:19.520 Florida, nobody's come from it except Baby Robozo, the famous Cuban, Amy Gray, close friend of Nixon. 482 00:50:19.520 --> 00:50:24.520 Also involved with all sorts of popular rum-running deals. 483 00:50:24.520 --> 00:50:28.520 So, cowboys tend more toward illegal action, sort of that way. 484 00:50:28.520 --> 00:50:32.520 Executive action is known as the CIA. 485 00:50:32.520 --> 00:50:40.520 So if you look at it from this perspective, then you see that, for example, Kennedy would have been Eisenhower, of course, was the Eastern Establishment. 486 00:50:40.520 --> 00:50:48.520 Kennedy was the Eastern Establishment. One was a quintessential Yankee. And Johnson was a cowboy. 487 00:50:48.520 --> 00:51:01.520 And so we could then have the Johnson, the Knicks, you have Kennedy, you have Yankee, Yankee would be Eisenhower, and Kennedy would be one of the different parties. 488 00:51:01.520 --> 00:51:11.520 We have Johnson, the cowboy, and Nixon, the cowboy. Ford was really Yankee, because Ford 489 00:51:11.520 --> 00:51:17.520 comes from Michigan, and Reagan Carter was also a Yankee, and Reagan was a cowboy. 490 00:51:17.520 --> 00:51:24.520 So this makes, for example, and if you're looking at it this way, you don't look at the political party, you look at their financial backing. 491 00:51:24.520 --> 00:51:34.520 And the Kennedy assassination has an interesting new light on the Kennedy assassination, namely the possibility of a cowboy takeover through assassination. 492 00:51:34.520 --> 00:51:38.520 The effect of the assassination is Johnson, of course, coming to power. 493 00:51:38.520 --> 00:51:50.520 And if you look at it as a police act, as a police problem, usually if somebody is killed, you look at the beneficiary, the suffering widow, maybe the suffering widow just bumped the guy off with a hundred million dollars or whatever. 494 00:51:50.520 --> 00:51:56.520 In this case, possibly bump them off for power and whatever else goes along with it. 495 00:51:56.520 --> 00:52:05.520 And the bringing down of Nixon and Watergate, shifting forward, might well have been the counter-attack by the Eastern Establishment, 496 00:52:05.520 --> 00:52:13.520 using not just guns and weapons, but the power of the press, namely CBS and Washington Post, etc. 497 00:52:13.520 --> 00:52:20.520 Bringing down Nixon as a sort of revenge motive, for one thing, against the Kennedy assassination, and bringing Ford in. 498 00:52:20.520 --> 00:52:27.520 All this very interesting speculation should be built more into it, which of course is not being done much.