Chapter 12 - Richard Nixon's treason: the post-1971 world

    The history of the United States since Franklin Roosevelt’s final reelection campaign, in 1944, contains all of the elements of a Shakespearean tragedy. But this tragedy is not on a stage; it is the in the lives we all live day to day. From the greatest power in the world in 1944, we have seen America’s sovereign powers surrendered; we have seen an almost shattered British Empire rise again, to threaten global destruction on a scale never before realized; and we have seen our people become smaller, lose their sense of history, and be increasingly corrupted by the ever-pervasive oligarchical culture within which we exist.

    The death of Franklin Roosevelt in 1945 was a catastrophe for humanity. Within days of Roosevelt’s death, the fool Harry Truman abandoned Roosevelt’s post-war intention to dismantle the British, French, and Dutch Empires,1 and instead, he joined with those reconstituted empires, in subjugating the United States to the British Empire’s “cold war” confrontation with the Soviet Union. Roosevelt’s anti-imperial policy was replaced by increasing American subservience to a pro-imperial “special relationship” with the British Empire.

    In 1963, the assassination of Roosevelt-admirer President John F. Kennedy took America another ratchet downward. The era of the John F. Kennedy who pledged to put men on the moon “within this decade,” was followed instead by the decade of the Vietnam War, and the eruption of the baby-boomer, pleasure-oriented, drug counterculture.

    1971 was the turning point. Richard Nixon’s August 15, 1971 abolition of Franklin Roosevelt’s Bretton Woods Monetary System opened up the floodgates for the Empire to reassert its global financial power, and all of the economic woes we suffer today can be traced to that calamitous policy shift. The fixed-exchange rate Bretton Woods system, which functioned as an agreement among governments to ensure monetary stability, to provide regulatory restraints on financial speculation, and to create a sound environment for long term economic investment and real economic development, was replaced by a new paradigm of free trade, globalization, deregulation, financial speculation, and oligarchic efforts to destroy national sovereignty.

    The historical disaster of Nixon’s 1971 action was followed in short order by the 1973 “oil crisis,” which was then used to destroy America’s sovereign control over her own currency. The way this worked has been described by Lyndon LaRouche2:

The effect of the oil shortage was to create the spot market, and under the spot market, the U.S. dollar
became a creature of petroleum... Before that event, the spot market, based in Amsterdam, had been a
very minor part of the world petroleum marketing. The effect of this, was to make the dollar, which was
still being used, no longer really a U.S. dollar internationally: It became an Anglo-American dollar, a "petrodollar"... As a result of this combination, the floating of the U.S. dollar, by President Nixon, and the
spot market, the security of the U.S. dollar was no longer based on the value of the U.S. dollar, but it was
based on the fluctuating value of petroleum... Both events are being steered from London, not from the
United States, but from London. Both represent the fact that, especially since 1971, the United States'
dollar has nominally been a leading factor in the world, but it has not been a U.S. dollar, it has been an international dollar... And in this process, you had a fundamental shift occurring, between 1968 and 1975,
in which, instead of having the nations of Europe and the United States as being the prime drivers of the
world physical economy, there was now a great shift in progress.”

    An important component of the “great shift” which LaRouche references was the move towards an open neo-colonial economic policy. Key to this process was the 1986-1994 Uruguay Round discussions of the GATT (General Agreement on Trades and Tariffs) organization, which culminated in the founding of the World Trade Organization in 1995. Under the WTO policy direction of the past 13 years, we have witnessed an ongoing destruction of the productive powers of labor in both the advanced sector nations as well as in the developing sector. The Hamilton-Lincoln-Roosevelt policy of nation-building has been replaced, on a global scale, with the “buy cheap-sell dear” regime of Adam Smith and the British East India Company. The productive economies of Europe and North America have been destroyed, while Mexico, Asia, Africa and elsewhere have become the locations of virtual slave-labor maquiladoras, and related economic “investments.”

    Under this new Empire globalist regime, national food self-sufficiency has been destroyed in dozens of countries, by a lack of investment, and a policy of shifting out of food production into producing “cash crops” for export. Across the globe, millions of peoples’ basic right of access to food is now determined by a handful of international cartels, and the policies of the WTO.

    This has all been accompanied by the imposition of a vast system of global usury, forced down the throats of those nations least of capable resisting it. The International Monetary Fund, an agency created as part of the Bretton Woods agreement to be the vehicle for sovereign government oversight over world financial affairs, has been transformed since 1971 into a creature of the Empire. Working with private banks and independent “vulture funds,” the IMF has ensnared dozens of nations in a web of usurious debt, which is then used to impose demands for brutal economic austerity, and a further surrender of national sovereignty. John Perkins book provides useful insights into the deliberate intent governing those actions.3

    What of the United States itself? Since 1971, we’ve lost most of our industry; our current health care system, with millions lacking health insurance, is a crime against humanity; our national infrastructure is collapsing; real physical living standards have declined; and our banking system has been transformed into an enormous gambling casino, which now teeters on the brink of collapse and ruin.

The return of the Ridotto

    The government of Venice closed the famous Ridotto casino in 1774, after most of the Venetian aristocracy had gambled themselves into penury. Somehow the lesson of that fiasco has been lost on the Barney “bailout” Franks of today.
Richard Nixon’s criminal actions of 1971 opened the door to allow the financial oligarchy to transform the entire U.S. financial and banking system into one big gambling casino, and to bring in the same financial methods which led to previous centuries’ speculative catastrophes, such as the John Law and South Sea bubbles.4
    As a result of these actions, following the stock market crash of 1987, and under the “guidance” of Alan “wall of money” Greenspan and Ben “bubbles” Bernanke, America embarked on a speculative binge unprecedented in human history, resulting in the dot-com crash of 2000-2001, the mortgage crash of 2007, and the looming banking crash we face today. Current news headlines concerning the insolvency of Bear Stearns, Indy Mac, Fannie Mae, and Freddie Mac, are just the canary in the coal mine. Over the past 30 years our entire banking system, a system vital to the national security of the nation, has been bankrupted and destroyed. There is no saving it within the existing financial axioms of Empire.

Fascism & Hope

    The deliberate destruction of America’s industrial economy and banking institutions is just the beginning of the story. What humanity is now facing is not simply a financial collapse, per se, but a civilizational collapse, the destruction of all nation states and a degeneration into a global new dark age. If you think that statement is extreme, look at what has transpired over the past 15 years, and where we find ourselves today:

In the absence of any assertion of national sovereignty, control over the world money markets has shifted almost entirely into private hands. A crucial step towards that end was the setting up of the offshore financial centers, beginning in the 1990s. Located primarily in British Crown Colonies, such as the Cayman Islands, Bermuda, and the British Virgin Islands, as well as select other locations like the Dutch Antilles, these oligarchical entities have become the home of thousands of hedge funds, private equity funds, and other unregulated financial activity. The Cayman Islands, alone, is home to over 8,000 hedge funds, and its banking system holds $1.4 trillion in deposits, making it the fourth-largest banking center in the world, after the U.S.A., Japan, and Britain.
These Anglo-Dutch Empire enclaves operate outside the control of any sovereign government. They are completely unregulated, and their financial records are held in strict secrecy. All of these centers have become the loci of massive drug-money laundering and financial speculation. Swarming out of the crevices of these Empire nests, the financial vultures speculate on food, oil, and other resources. They carry out attacks on the currencies of nations, and buy up and dismantle whole chunks of the productive economy in the United States and elsewhere.

In tandem with this creation of the Empire’s offshore financial operations, has come a concerted drive to place control over world trade and key commodities, including food, oil, strategic metals, pharmaceuticals, etc., under the dominance of a relative handful of global corporations, which work in sync with the Empire’s financial centers. In 1968, at a meeting of the Bilderberg Group in Mont Tremblant, Canada, former Lehman Brothers banker George Ball called for the creation of what he called the World Company.
    As John Hoefle described this project:7

The aim of this world company project, as explained by Ball, was to eliminate ‘the archaic political structure of the nation state’ in favor of a more "modern" corporate structure. ‘The world company has a great potential for good as
an instrument for efficiently utilizing resources
,’ Ball said...
The idea was explicitly Malthusian, based upon the
claim that the combination of global overpopulation and a shortage of natural resources required a more efficient management process than nations, with their political biases, could provide...
As we have indicated in
numerous locations, what is being proposed is a form of Mussolini-style corporatism, in which government becomes the agent for rule by financier-run corporate cartels.”

    What we are witnessing here is the rebirth, in modern garb, of the British and Dutch East India Companies. This process began with the corporate mergers and acquisitions of the the 1980s and 1990s, much of which were funded by the British offshore financial centers, but what we are seeing today, is no longer merely “corporate takeovers,” but the increasing cartelization of the entire world economy and banking houses, into fewer and fewer private oligarchical hands. The present proposal in the United States, to hand whole sections of our federally-regulated banking system over to the private equity funds, and to eliminate most government oversight and regulation, is part of this cartelization process. For the individuals involved in this scheme, national sovereignty no longer exists. It is, in essence, a global system, “of the oligarchy, by the oligarchy, and for the oligarchy,” in which governments are reduced to merely the servants of that oligarchy. This is the modern Anglo-Dutch Empire.

     3)   The British Empire policies of genocide and permanent war, described in Chapter 11 of this work, are now being recreated on a global scale. Consider what was reported on British mass murder in India, and look at what we are seeing today.
    According to a press release issued by Oxfam International on July 23, 2008, more than 15 million East Africans are at risk of "severe hunger and destitution" within months. They report that the cost of food has risen "500% in some places" causing "utter destitution." Oxfam found the cost of imported rice to Somalia soared 350% between January 2007 and May 2008, and 35 percent of the population requires food aid. All the Horn of Africa countries, Kenya, Ethiopia, Somalia, Eritrea, and Djibouti are desperate. In Ethiopia the price of wheat doubled in six months and 10 million people face starvation. An Oxfam spokesman described witnessing a road "littered with dead livestock" and people grinding "food pellets intended for their animals" to make "porridge to feed their families."

    This is not a crisis limited to Africa. There have been food riots in Haiti, Egypt, India, and dozens of countries around the world. Vulture speculators have driven up the price of food, and nations which were once self sufficient in food production, are now helpless, after the last 20 years of free trade and cartelization of global food production.

    As nation-states disintegrate, chaos and war are the result. This intended result, is then used as the excuse for global imperial wars, some utilizing East-India Company-style private mercenary armies, and others involving American and European “rapid deployment” and other “special ops” forces, deployed on behalf of the Empire. To accomplish this, the people of the United States and Europe are given a series of “enemy images,” which supposedly represent threats to our security, e.g. Iraq, Iran, Sudan, Zimbabwe, North Korea, etc. This “enemy image” methodology is no different then the pablum served up to the people of England in the 19th century to justify England’s colonial wars. And of course the real enemy of our Republic, the Empire, is never mentioned.
    Even worse, the present existential breakdown of the world financial system, and the threat that nations will respond to this crisis by reasserting national sovereignty, is impelling the British Empire to unleash global strategic war, as they did in 1914. That threat is now imminent.

* * *

    We find ourselves at a fork in the road. As Lyndon LaRouche emphasized in his July 22, 2008 International Webcast, there is absolutely no hope of saving the present world monetary system. There are no “reforms” that are going to work. We have but two choices: the pathway defined by the Empire, or a return to the sovereign economic methods of Alexander Hamilton, Abraham Lincoln, and Franklin Roosevelt. All of the tools required to choose the second path still exist in the sovereign constitutional powers of the United States government. Willing allies exist, including China, Russia, India, and many other nations, to bring into existence new financial and economic agreements. The concrete steps taken by Franklin Roosevelt still exist as a matter of historical record, waiting to be put into practice again today. The initial steps required to begin an economic recovery also exist, to be found in Lyndon LaRouche’s March, 2008 “Three Steps to Survival,” which provides a clear starting point for reversing the economic collapse and returning to the American System of Economics. The solution to the current global financial and monetary breakdown crisis also exists in the form of LaRouche’s proposal for a New Bretton Woods Monetary System. a proposal first enunciated by LaRouche in March of 1998, and still awaiting action today.

    The solutions are all available, What’s required is the will to act. What’s missing is individual courage. This is the issue on which this present work began. History doesn’t happen. It is voluntaristic. We are faced with a life-and-death crisis. What are we going to do about it? If enough of us act now, if we can find in ourselves the same historical courage as the soldiers at Valley Forge, or the same determination to save the principles of 1776 as Presidents Lincoln and Roosevelt, then time still exists to win this fight. But time is running short.

1 For Roosevelt’s fight with Winston Churchill on ending the British Empire, see LPAC’s “1932” video, as well as As He Saw It, by Elliott Roosevelt

2 Lyndon LaRouche International Webcast, “Averting Doom,” March 12, 2008, available at

3 Confessions of an Economic Hitman, by John Perkins

4 See Yes! It Really is Gambling, by Robert Ingraham

5 It was the Chicago Board of Trade which originally initiated London-style futures and options trading in the United States in 1865, only months after Abraham Lincoln’s assassination. This speculative activity flourished until Franklin Roosevelt banned most of these practices in 1936.

6 It was the same Fisher Black, who in 1985, developed the “Black-Derman-Toy” model which led to the rapid expansion of trading in financial derivatives.

7 Fascism and the Project For a World Company, by John Hoefle