REVOLUTION from ABOVE


NATO HQ, Brussels. Some critics have noted a hidden Swastika in the logo

OVERWORLDS to UNDERWORLDS
“A revolution from above refers to major political and social changes that are imposed by an elite on the population it dominates. By contrast, the plain term revolution suggests that pressure from below is a major driving force in events, even if other social groups cooperate with — or ultimately capture —the movement. The phrase was coined by the Spanish writer Joaquín Costa in the 19th century.[1] In contrast, a “revolution from below” refers to a grassroots campaign against elites.”

EXAMPLES
Enlightened Despotism in 18th-century Europe
Fascism
Stalin‘s Collectivization of agriculture
Soviet Industrialization
White Revolution in Iran
Spain pt1 / Spain pt2

SIDNEY WEBB and the FABIANS
http://socialistworker.org/2014/05/30/revolution-from-above
6. The Fabian Model
In Germany, behind the figure of Lassalle there shades off a series of “socialisms” moving in an interesting direction. The so-called Academic Socialists (“Socialists of the chair,” Kathedersozialisten–a current of Establishment academics) looked to Bismarck more openly than Lasalle, but their conception of state-socialism was not in principle alien to his. Only, Lassalle embarked on the risky expedient of calling into being a mass movement from below for the purpose–risky because once in motion it might get out of hand, as indeed it did more than once. Bismarck himself did not hesitate to represent his paternalistic economic policies as a kind of socialism, and books got written about “monarchical socialism,” “Bismarckian state-socialism,” etc. Following further to the right, one comes to the “socialism” of Friedrich List, a proto-Nazi, and to those circles where an anti-capitalist form of anti-Semitism (Dühring, A. Wagner, etc.) lays part of the basis for the movement that called itself socialism under Adolf Hitler.

“It is of my opinion that the swastika is what has been hidden from western consciousness by placing it in plain view, with its image sullied. However in the business world, post WWII, it is business as usual. The swastika in the lobby of JP Chase bank? :lol: Remember also that it has been shown that Hitler and the Third Reich was receiving ‘western financial aid’.” -http://www.religionforums.org/Thread-Does-your-religion-believe-in-credit,
http://criti-carlos.blogspot.com/2014/02/negocios-que-crecieron-con-los-nazis.html

The thread that unites this whole spectrum, through all the differences, is the conception of socialism as equivalent merely to state intervention in economic and social life. “Staat, greif zu!” Lassalle called. “State, take hold of things!”–this is the socialism of the whole lot. This is why Schumpeter is correct in observing that the British equivalent of German state-socialism is–Fabianism, the socialism of Sidney Webb. The Fabians (more accurately, the Webbians) are, in the history of the socialist idea, that modern socialist current which developed in more complete divorcement from Marxism, the one most alien to Marxism. It was almost chemically pure social-democratic reformism unalloyed, particularly before the rise of the mass labor and socialist movement in Britain, which it did not want and did not help to build (despite a common myth to the contrary). It is therefore a very important test, unlike most other reformist currents which paid their tribute to Marxism by adopting some of its language and distorting its substance.

The Fabians, deliberately middle-class in composition and appeal, were not for building any mass movement at all, least of all a Fabian one. They thought of themselves as a small elite of brain-trusters who would permeate the existing institutions of society, influence the real leaders in all spheres Tory or Liberal, and guide social development toward its collectivist goal with the “inevitability of gradualness.” Since their conception of socialism was purely in terms of state intervention (national or municipal), and their theory told them that capitalism itself was being collectivized apace every day and had to move in this direction, their function was simply to hasten the process. The Fabian Society was designed in 1884 to be pilot-fish to a shark: at first the shark was the Liberal Party; but when the permeation of Liberalism failed miserably, and labor finally organized its own class party despite the Fabians, the pilot-fish simply reattached itself.

There is perhaps no other socialist tendency which so systematically and even consciously worked out its theory as a Socialism-from-Above. The nature of this movement was early recognized, though it was later obscured by the merging of Fabianism into the body of Labor reformism. The leading Christian socialist inside the Fabian Society once attacked Webb as “a bureaucratic Collectivist” (perhaps the first use of that term.) Hilaire Belloc’s once-famous book of 1912 on The Servile State was largely triggered by the Webb type whose “collectivist ideal” was basically bureaucratic. G.D.H. Cole reminisced: “The Webb’s in those days, used to be fond of saying that everyone who was active in politics was either an ‘A’ or a ‘B’–an anarchist or a bureaucrat–and that they were ‘B’s’…”

These characterizations scarcely convey the full flavor of the Webbian collectivism that was Fabianism. It was through-and-through managerial, technocratic, elitist, authoritarian, “plannist.” Webb was fond of the term wire-pulling almost as a synonym for politics. A Fabian publication wrote that they wished to be “the Jesuits of Socialism.” The gospel was Order and Efficiency. The people, who should be treated kindly, were fit to be run only by competent experts. Class struggle, revolution and popular turbulence were insanity. In Fabianism and the Empire imperialism was praised and embraced. If ever the socialist movement developed its own bureaucratic collectivism, this was it “It may be thought that Socialism is essentially a movement from below, a class movement,” wrote a Fabian spokesman, Sidney Ball, to disabuse the reader of this idea; but now socialists “approach the problem from the scientific rather than the popular view; they are middle-class theorists,” he boasted, going on to explain that there is “a distinct rupture between the Socialism of the street and the Socialism of the chair.”

The sequel is also known, though often glossed over. While Fabianism as a special tendency petered out into the larger stream of Labor Party reformism by 1918, the leading Fabians themselves went in another direction. Both Sidney and Beatrice Webb as well as Bernard Shaw–the top trio–became principled supporters of Stalinist totalitarianism in the 1930s. Even earlier, Shaw, who thought socialism needed a Superman, had found more than one. In turn he embraced Mussolini and Hitler as benevolent despots to hand “socialism” down to the Yahoos, and he was disappointed only that they did not actually abolish capitalism. In 1931 Shaw disclosed, after a visit to Russia, that the Stalin regime was really Fabianism in practice. The Webbs followed to Moscow, and found God. In their Soviet Communism: a New Civilization, they proved (right out of Moscow’s own documents and Stalin’s own claims, industriously researched) that Russia is the greatest democracy in the world; Stalin is no dictator; equality reigns for all; the one-party dictatorship is needed; the Communist Party is a thoroughly democratic elite bringing civilization to the Slavs and Mongols (but not Englishmen); political democracy has failed in the West anyway, and there is no reason why political parties should survive in our age…

They staunchly supported Stalin through the Moscow purge trials and the Hitler-Stalin Pact without a visible qualm, and died more uncritical pro-Stalinists than can now be found on the Politburo. As Shaw has explained, the Webbs had nothing but scorn for the Russian Revolution itself, but “the Webbs waited until the wreckage and ruin of the change was ended, its mistakes remedied, and the Communist State fairly launched.” That is, they waited until the revolutionary masses had been straitjacketed, and the leaders of the revolution cashiered, the efficient tranquility of dictatorship had settled on the scene, the counter-revolution firmly established; and then they came along to pronounce it the Ideal. Was this really a gigantic misunderstanding, some incomprehensible blunder? Or were they not right in thinking that this indeed was the “socialism” that matched their ideology, give or take a little blood? The swing of Fabianism from middle-class permeation to Stalinism was the swing of a door that was hinged on Socialism-from-Above.

If we look back at the decades just before the turn of the century that launched Fabianism on the world, another figure looms, the antithesis of Webb: the leading personality of revolutionary socialism in that period, the poet and artist William Morris, who became a socialist and a Marxist in his late forties. Morris’ writings on socialism breathe from every pore the spirit of Socialism-from-Below, just as every line of Webb’s is the opposite. This is perhaps clearest in his sweeping attacks on Fabianism (for the right reasons); his dislike of the “Marxism” of the British edition of Lassalle, the dictatorial H.M. Hyndman; his denunciations of state-socialism; and his repugnance at the bureaucratic-collectivist utopia of Bellamy’s Looking Backward. (The last moved him to remark: “If they brigaded me into a regiment of workers, I’d just lie on my back and kick.”

Morris’ socialist writings are pervaded with his emphasis from every side on class struggle from below, in the present; and as for the socialist future, his News from Nowhere was written as the direct antithesis of Bellamy’s book. He warned

that individual men cannot shuffle off the business of life on to the shoulders of an abstraction called the State, but must deal with it in conscious association with each other…Variety of life is as much an aim of true Communism as equality of condition, and…nothing but an union of these two will bring about real freedom.

“Even some Socialists,” he wrote, “are apt to confuse the cooperative machinery towards which modern life is tending with the essence of Socialism itself.” This meant “the danger of the community falling into bureaucracy.” Therefore he expressed fear of a “collectivist bureaucracy” lying ahead. Reacting violently against state-socialism and reformism, he fell backwards into anti-parliamentarism but he did not fall into the anarchist trap:

…people will have to associate in administration, and sometimes there will be differences of opinion…What is to be done? Which party is to give way? Our Anarchist friends say that it must not be carried by a majority; in that case, then, it must be carried by a minority. And why? Is there any divine right in a minority?

This goes to the heart of anarchism far more deeply than the common opinion that the trouble with anarchism is that it is over-idealistic. William Morris versus Sidney Webb: this is one way of summing up the story.

SYNARCHISM
https://en.wikipedia.org/wiki/Synarchism
http://canadanewslibre.com/2012/10/23/synarchism-joint-rule-by-secret-elite/
http://adage.com/article/agency-news/wpp-s-synarchy-choice-sparks-sneers/127164/
http://www.foundationwebsite.org/OnSynarchy.htm
http://www.newdawnmagazine.com/articles/synarchy-the-hidden-hand-behind-the-european-union
Synarchy: The Hidden Hand Behind the European Union
by Lynn Picknett & Clive Prince

While questions remain about the existence of a single global elite with an agenda that goes beyond simply keeping itself very, very rich, there are certainly groups that want to run the world for quite other reasons. And with the increasing globalisation of political and economic institutions, it has become easier for a relatively small group to inveigle itself into quite staggeringly influential positions. One cabal in particular reveals – alarmingly – what a small group, driven by a fanatical belief system, can achieve from the shadows. And writing as we are in the United Kingdom, this group is on our doorstep, and has been for over a century. And although perhaps small in number, its reach is big. Our research into this subject demonstrated that every major step in the development of the European Union from a simple trading body to a borderline superstate can be traced back to a very specific ideology, which upholds rule by an elite from behind the scenes. But this isn’t just about politics.

Astonishingly, this ideology is also about mysticism and magic. This shadowy politico-occult movement is synarchy, which was developed by the Frenchman Joseph Alexandre Saint-Yves, the Marquis d’Alveydre, in opposition to the rise of anarchy in the second half of the nineteenth century. To him the ideal synarchist state would be a rigid social hierarchy topped by an elite that is predestined to rule – absolutely at odds with the then emerging concepts of democracy, individual liberty and social mobility. Central to Saint-Yves was the creation of a united Europe, a call for which appears on the first page of his first book on synarchy, Keys to the East (1877). He believed that his perfectly balanced society reflected deep cosmic laws, with which his elite perfectly resonated.

They are also directly guided by the powers that rule the universe – as he believed himself to be. Saint-Yves claimed that in the ancient past an advanced civilisation – based, of course, on synarchic principles – had governed the whole world. This golden age lasted from 7500 to 4000 BCE, before imploding due to a global catastrophe, remembered in legends such as Atlantis. Since then the occult powers-that-be have periodically reintroduced the revelation of synarchy, sending or inspiring figures such as Moses and Jesus – and, naturally, Saint-Yves himself. He adopted the idea, popular in nineteenth-century esoteric and theosophical circles, that spiritually advanced masters – to him preservers of the synarchic revelation – existed in Agartha, a hidden realm in the Himalayas. He confided in his closest associates that he had been visited by its emissaries. Another significant aspect of his version of history was that clandestine societies had transmitted the secret of synarchy throughout the ages. It comes as no surprise to discover that his ‘spiritual fathers of synarchy’ were the usual suspects – the Knights Templar.

For a time in the 1880s and 90s Saint-Yves’ ideas were seriously discussed in political circles in France and elsewhere in Europe. In 1886 he formed the Syndicate of the Professional and Economic Press to promote synarchy to political and business leaders. Several members of the French Parliament joined, including government minister François Césaire Demahy – later a founder of the influential nationalist movement Action Française – and Paul Deschanel, who became President of France in 1920. Saint-Yves was made a chévalier of the Légion d’honneur in 1893. In the end, however, Saint-Yves’ followers realised things would have to change radically. After his death in 1909, and particularly in the uncertain aftermath of the First World War, they knew they could never achieve their ambitions through conventional means – and turned to stealth. They decided on inveigling their members into key positions in political and economic institutions intending on creating, in the words of Richard F. Kuisel, a specialist in twentieth-century French political history, “a world government by an initiated elite.”1 Synarchy came to stand for ‘rule by secret society’, which in practice makes it difficult to distinguish between card-carrying synarchists and those merely under their influence.

Towards Europe’s ‘United States’
The most high-profile late nineteenth-century devotee of Saint-Yves was the physician Gérard Encausse (‘Papus’), a leading light among French esoteric societies. He blended the teachings of his ‘spiritual master’, the eighteenth century occult philosopher Louis-Claude de Saint-Martin, and his ‘intellectual master’ Saint-Yves. Encausse founded the Martinist Order, into which he absorbed synarchist principles – so that, unusually, it had political ambitions, including the formation of ‘a United States of Europe’. Delusions of grandeur, one might have thought… Encausse’s death in 1916 resulted in a schism in the Martinist Order over its involvement in politics. The activists, under Victor Blanchard – head of the secretariat of the Chamber of Deputies of the French Parliament – formed the breakaway Martinist and Synarchic Order, which established the Synarchic Central Committee in 1922, designed to pull in promising young civil servants and “younger members of great business families.”2 The Committee soon became the Synarchic Empire Movement, or MSE (Mouvement Synarchique d’Empire) in 1930, under dedicated firebrands Jeanne Canudo and Vivien Postel du Mas. Canudo is best remembered today as an energetic campaigner for European unity and founder of several youth organisations in the 1930s, select members of which were inducted into the esoteric synarchist orders that she led together with Postel du Mas. An important witness to these events was the celebrated Parisian litterateur Maurice Girodias (publisher of scandalous sensations such as The Story of O, Lolita, Henry Miller’s Sexus and William S. Burrough’s The Naked Lunch). As a teenager in the 1930s he was involved both with Canudo’s European groups and an esoteric society that met at Postel du Mas’ luxurious apartment to hear the ‘secret masters’ speaking through teenage trance medium Laurette. Girodias said of Postel du Mas’ magical salons: “I saw at his feet men of science, company directors, and bankers.”3

Beyond Top Secret
The MSE produced an important but beyond Top Secret document – its very existence unknown to outsiders until 1941 – entitled The Synarchist Revolutionary Pact for the French Empire, usually known simply as the Synarchist Pact. The exact authorship is uncertain but the main candidates are Postel du Mas and the businessman Jean Coutrot. It was only as a result of Coutrot’s apparent suicide under the Nazi Occupation, when copies were found among his possessions, that anyone knew the Pact existed.4 This highly scary document set out a programme for “invisible revolution” or “revolution from above”: that is, taking over a state from within by infiltrating into high office. The first step was to take control of France, before creating the “European Union” – then, tomorrow… Saint-Yves did not invent the concept of a federal Europe. For example, Victor Hugo is credited with first using the term ‘United States of Europe’, although – probably not coincidentally – he was a close friend of Saint-Yves in the French ex-pat community in the Channel Islands in the 1860s. But it became a serious political force when the Pan-European movement was established in 1923 by the Austrian Count Richard Coudenhove-Kalergi, described by Otto von Habsburg – in rather telling terms – as the “guide and prophet” of a united Europe.

He famously won over Winston Churchill, who began espousing European unity from 1930 and wrote a foreword to the Count’s 1953 book An Idea Conquers the World. The Count was a committed believer that cosmic forces shape events, giving him at least the profile of a synarchist. (Sadly we have no information about Churchill’s views on the more occult aspects.) But there is evidence of a closer connection with the French synarchists. In their 1968 Synarchy and Power, André Ulmann and Henri Azeau interviewed one of the inter-war members of the MSE, who claimed it had “inspired the action of Coudenhove-Kalergi and his pan-Europeanism.”5 Coudenhove-Kalergi also lent his support to pro-Europe groups formed by the MSE’s Jeanne Canudo. Maurice Girodias’ involvement with the synarchists began as a 16-year-old when, at a Theosophical Society lecture in 1935, he was intrigued by a group in flamboyant Templar garb led by Postel du Mas and Canudo. He was told they were “schismatic theosophists with political designs, and they are linked to Count Coudenhove-Kalergi… who is a champion of the United States of Europe… Their aim is to launch a pan-European political party and to institute in the entire world, commencing with Europe, a society obedient to a spiritualist idea.”6 In conversation with Girodias Postel du Mas named Coudenhove-Kalergi as one of the two major promoters of his and Canudo’s plans.

https://archive.org/details/TheAnti-coup

The Hood
In the tumultuous aftermath of the First World War, like the rest of Europe France became polarised between communism and fascism. The mid-1930s saw the creation of several clandestine far-right groups, both civilian and military, which were integrated into a single network under the control of a three-man Superior Council. Although it gave itself no particular name, the press dubbed it the Cagoule – or the sinister-sounding ‘Hood’. Indeed, the Chicago Tribune’s correspondent in Paris, William Shirer, summed up the Cagoule as “deliberately terrorist, resorting to murder and dynamiting, and its aim was to overthrow the Republic and set up an authoritarian régime on the model of the Fascist state of Mussolini.”7 Italy supplied the Cagoule with funds and arms and, in return, the Cagoule assassinated anti-fascist Italian refugees in Paris. The Cagoule was led by chévalier of the Légion d’honneur Eugène Deloncle, with the other Council members being Dr Henri Martin and Colonel Georges Groussard, who oversaw cabals within the military. It was funded by wealthy industrialists, including Eugène Schueller, founder of L’Oréal – who obviously thought synarchy was “worth it” – in whose company’s headquarters the group met. Although most of the Cagoule were simply anti-communist extremists, who had probably never heard of synarchy, there’s no doubt that there was a strong connection between the MSE and Superior Council, particularly Deloncle.

The connection was acknowledged by Shirer8 and by Richard Kuisel, who writes: “Strangely enough, although the Cagoule was an archenemy of Freemasonry, it imitated Masonic ritual, symbolism, and method of recruitment. The head of the Cagoule, Eugène Deloncle, even likened its recruiting procedures to the ‘chain method’ of the Illuminati.”9  Basically, through the Cagoule, the synarchists had taken over terrorist groups for their own ends, planning to precipitate a state of emergency that would enable its chosen man to step in as a strong leader to restore order “in the interests of public safety.” And their chosen man was Marshal Philippe Pétain. In September 1937 a series of bomb explosions rocked Paris, intended to kick-start a wave of armed attacks to spread chaos and confusion. But a lucky break led the police to caches of arms and ammunition around the city and Deloncle was arrested. An official report pointed to the MSE, noting “affiliates of the Synarchic Movement were very numerous and already in place within, and at the head of, the major organs of the state, ready to take charge.”10

It is hard to overestimate the influence of the synarchists. They were – and no doubt still are – hardly a bunch of nobodies. A major player in this story was none other than François Mitterrand, later France’s longest-serving President. Although he was to reinvent himself as a socialist, before and during the Second World War he was very much of the extreme right. Even at the time it was rumoured that Mitterrand was a member of the Cagoule. But more sensationally, Henri Martin’s family claimed he had actually planted the 1937 bombs.11 But while no firm evidence exists to support Mitterrand being a cagoulard, and he strenuously denied it when confronted with his shady past in the 1990s, he certainly had the connections, besides the relevant political – and indeed, esoteric – views. Mitterrand believed in rule by an elite – preferably an elite of one: himself. Although from a relatively modest background, he always had an unshakeable belief in his personal superiority, even seeing significance in his family’s origins in the town of Bourges, where a field called the Champs de Mitterrand marks the exact centre of France. ‘Mitterrand’ means ‘middle of the land’.

When the ultra-ambitious Mitterrand finally achieved power he notoriously governed through his ‘clan’ of friends and relatives, famously remarking that he needed only “fifty well-placed friends to run the country.”12 And he began building the clan during those pre-war days, around leading cagoulards, particularly those close to Deloncle. Mitterrand was a close friend of conspirator in the assassination of the Italian anti-fascist Rosselli brothers, Jean Bouyver, and of François Méténier, Deloncle’s assistant who was sentenced to 20 years for his part in the 1937 bombings. But the closest family connection was with Deloncle: Mitterrand’s brother Robert married Deloncle’s sister-in-law just before the outbreak of war. It is inconceivable that Mitterrand never met the Cagoule’s mastermind and top synarchist. Also, as we will see, like Deloncle Mitterrand was deeply fascinated by esoteric and mystical matters.

Secrets of the Hitler-friendly State
Although the Cagoule’s plans to create a state of emergency to bring Pétain to power failed, of course this was achieved three years later by an even greater crisis. In June 1940 France fell to Nazi Germany, Pétain emerging as the leader of the new Hitler-friendly French State, based in Vichy. Almost immediately after France’s ignominious surrender some claimed elements in the military had connived in the defeat, believing that jumping into bed with the Nazis would enable Pétain to achieve his cherished national reorganisation. So it is all the more disturbing that one of Ulmann and Azeau’s ex-MSE informants told them that a senior figure behind the group and “one of the mentors” of the young men being groomed for future greatness in the 1920s and 30s was none other than General Maxime Weygand.13 No doubt not coincidentally married to Saint-Yves’ great-niece, he was Supreme Commander of French and British forces at the outbreak of the Second World War, and in June 1940 it was he who advised the French government to ask Hitler for terms. French researcher Roger Mennevée argued that Vichy represented the climax of the first phase of the plan outlined in the Synarchist Pact – taking power in France in preparation to extend it to Europe – using the Germans to do what the Cagoule had failed to three years earlier.14 Ulmann and Azeau note that, coincidence or not, Vichy was organised precisely on synarchist lines.

Both the Occupation and Vichy were seen as an opportunity by the synarchists. In Paris, Postel du Mas and Canudo positively welcomed the German overlords. One investigator into synarchy notes of one of her pro-Europe organisations, “the majority were found, after 1940, either in the corridors of power in Vichy, or in the collaborationist circles in Paris.”15 In Vichy, unsurprisingly, former cagoulards rose to the top, particularly in the dreaded Milice, Vichy’s equivalent of the Gestapo. Deloncle was freed from prison – and formed a political party to build a ‘new Europe’, while Henri Martin and Colonel Groussard enjoyed high-level roles in the intelligence and surveillance network. Historian John Hellman states bluntly that former cagoulards were behind the “manipulation, control, and orientation of Pétainist France.”16 Although a one-to-one connection between the Cagoule and the synarchs may sometimes be something of a leap, the latter were undoubtedly active in Vichy. Shirer declares there is “no doubt” that synarchists “infiltrated the highest posts in business and finance and in the government bureaucracy.”17 Certainly many of the young hopefuls groomed by the MSE rose to Vichy’s upper echelons – including Yves Bouthillier, Minister of Finance from 1940 to 1942.

What about Mitterrand? Imprisoned in June 1940, he escaped from the Occupied territory in December 1941 to the Vichy zone. He was welcomed by ex-cagoulards who got him various government jobs (his main sponsor was the father-in-law of both his brother and Deloncle) and was even awarded Vichy’s highest honour for services to the state, the Francisque Gallique, in 1943. Soon afterwards Mitterrand hastily changed sides, joining the Resistance and making his way to London to ally himself with the Free French – the only episode allowed to be remembered after the war. He wasn’t the only Vichyite to jump ship. Many French synarchists began cosying up to the Allies, as it was increasingly obvious that the tide had turned against Hitler. Henri Martin joined the American covert organisation, the OSS, and Deloncle established contact with the British SOE, although he was killed in a gun battle with the Gestapo in January 1944. In November 1943 a group of Free French analysts drew up a report explicitly examining synarchists in Vichy and, lately, in the Resistance, acknowledging the reality of synarchy and its considerable influence.18 Unbelievably, Mitterrand emerged from the conflict a Resistance hero and a left-wing politician, his connections with Vichy and his far-right background assigned to the collective amnesia that conveniently gripped France after the war. But as he clearly had cagoulard sympathies and connections, he must have shared their aims – despite his later bluster to the contrary. And with his interests, associations and chameleon-like changing of political colours in order to achieve his goals he certainly looks like the perfect synarchist. But most suspicious by far are his extraordinary efforts to create the European Union…

The EU: An Alternative History
The ‘European project’ began on 9 May 1950 with French Foreign Minister Robert Schuman’s announcement that France and West Germany had agreed to co-ordinate their coal and steel industries. Italy, Belgium, the Netherlands and Luxembourg took up his offer to join in, leading seven years later to the Treaty of Rome that established the European Economic Community (EEC). Schuman was only the front man. The prime mover was actually Jean Monnet, the most influential businessman and economist in post-war Europe. Period. The massive international power base he had built up before and during the war gave him immense political influence while keeping out of the public eye.

It was Monnet who had secured the Allies’ backing for General de Gaulle against Roosevelt’s opposition, and in return, de Gaulle gave him responsibility for rebuilding the French economy and industry – a position he used to achieve his great dream, laying the foundations for the EEC. The ‘Schuman Declaration’ was the result of intrigue, trickery and subterfuge by Monnet,19 his most audacious trick being to get French and West German governments to set up a supranational organisation to co-ordinate their industries without realising exactly what they had signed up to. This radical new concept, of an organisation with control over individual nations’ industries but with its own, outside autonomy, laid the foundation for all that came after. Unsurprisingly, Monnet became president of the new body, called – with a chillingly Orwellian tone – the High Authority. Shuman became the first president of the European Parliament in 1958.

What was really going on? A rather large clue lies in the fact that Monnet was another pre-war protégé of the Synarchist Empire Movement. In 1936, Vivien Postel du Mas told Maurice Girodias that, alongside Coudenhove-Kalergi, Monnet was an influential promoter of the synarchist agenda. He certainly publicly supported Canudo’s pro-Europe groups. And one of Ulmann and Azeau’s ex-MSE informants went so far as to describe Monnet as a “true synarch… whose membership of the movement was never in doubt for the true initiates.”20 (Note the occult-sounding “initiates.”) Schuman, too, had pre-war synarchist connections, although not as direct: he had worked closely on political reform in France and European integration with the professor of law Louis Le Fur, a synarchy activist.

Power for Power’s Sake
The Single European Act of 1986, which established free trade and movement between EEC states, was the culmination of the process set in motion by the Schuman Declaration. Over the years the EEC had come to include the UK and Ireland, among others, but the original idea had gone as far as it could. It was Mitterrand who went beyond the original concept by proposing not just closer economic, but alsopolitical, union. The 1992 European Union (‘Maastricht’) Treaty not only turned the EEC into the EU, but for the first time gave the European Parliament powers over member nations (until then it had only an advisory role). Was this the beginning of a European superstate? It also agreed on a single currency, establishing the ‘eurozone’ and the European Central Bank – now terrifyingly beleaguered. All this was Mitterrand’s initiative (aided by German Chancellor Helmut Kohl), including changing the name to the ‘European Union’. Straight out of the Synarchist Pact. Mitterrand made his second bid for the presidency in 1981 – but unlike the first sixteen years before, backed by Jean Monnet, this one was successful. He held the office for two seven-year terms, only being prevented from a third term by the onset of the cancer of which he was to die in 1996. His presidency is remembered for its corruption and the blatant nepotism of his ‘clan’ being rewarded with positions of power. Political historians accept that Mitterrand was purely interested in power for power’s sake, and for the enrichment of himself and his clan, with no real political agenda or vision – except when it came to the ‘European project’. There, he was driven by the desire to see a fully integrated Europe, which he declared “takes precedence over everything.”

But was Mitterrand a card-carrying synarchist? He moved in the right circles, through his pre-war associations with the Cagoule’s leadership. His pursuit of closer European integration certainly fits the synarchists’ core objective. And his interest in esoteric matters also fits the profile – which tends to be downplayed by Mitterrand’s biographers, although it is explored in Nicolas Bonnal’s Mitterrand, the Great Initiate (2001). He employed astrologers – even for major foreign policy decisions – believed in reincarnation, and was interested in UFOs. Even more intriguing to Dan Brown fans – and indeed, our own – is the fact that he had a special veneration for Mary Magdalene, focused on her cult centre at Vézelay. And much has been made of him visiting the celebrated ‘village of mystery’ of Rennes-le-Château (actually only the most high-profile of several visits) during his 1981 election campaign. Nicknamed ‘the Sphinx’, Mitterrand was also fascinated by ancient civilisations: as President he oversaw a great accumulation of Egyptian antiquities by French museums and universities, believing there was some connection between that civilisation and ancient France. Saint-Yves would have agreed.

As President, Mitterrand also spent some 30 billion francs on a major programme of public building, mostly in Paris. Like all egomaniacs he was driven to leave his solid, tangible mark on history. But apparently, there was more to it than that. His monuments’ esoteric symbolism is acknowledged even by mainstream writers, such as Marie Delarue in her 1999 study, tellingly entitled A Republican Pharaoh. She refers to the Parisian buildings as “a journey for initiates,” noting they “seem to relate more to personal destiny and François Mitterrand’s pronounced taste for hermeticism and the Sacred Science, than to the politics of socialist governments.”21 The most famous of his monuments is the great glass pyramid outside the Louvre, unveiled in 1993 to mark the bicentenary of the French Revolution, and clearly reflecting a link between ancient Egypt and France. But the most imposing public work is the Grande Arche de la Fraternité in the La Défence area of Paris, completed in 1989 and designed by the Danish architect Otto von Spreckelsen. Bizarrely – and rather ambitiously – it represents a three-dimensional ‘shadow’ of a hyperdimensional cube that he called a “porte cosmique”: ‘cosmic gateway’ or perhaps even ‘stargate’… But “the most beautiful, most esoteric and least known of the Mitterrandian Great Works”22 – and his personal favourite – is the 1989 Monument to the Rights of Man and the Citizen in the Parc du Champs-de-Mars, in the shadow of the Eiffel Tower. Modelled on an Egyptian funerary temple and aligned to the Sun on the summer solstice, it is literally covered in esoteric symbolism, much of it obviously Masonic. After Mitterrand’s death his staff revealed that he often visited it at night, silently meditating. In both action and belief Mitterrand certainly fits the profile of the synarchist. But remember that synarchy’s elite believed itself to be in direct contact with powerful non-human intelligences who effectively pulled the strings of those in power. Or perhaps Mitterrand was simply under the synarchist elite.

So… Nobody can pretend the journey from the Schuman Declaration to today’s EU has been untroubled. It has been repeatedly obstructed by those opposed to a federal Europe, and diverted by vested interests – political, economic and even criminal – seeking to turn it to their advantage. The whole thing simply can’t have been planned and directed exclusively by the synarchist elite. But on the other hand, it is undeniable that things have turned out how Saint-Yves and his followers would have wanted. And given that all the major steps along the way were the initiative of individuals with direct synarchist connections, it would equally be wrong to dismiss their influence on the EU’s creation. Of course, Saint-Yves’ vision did not end with the creation of the EU and the eurozone. They merely marked the beginning of the ultimate synarchist dream of a true United States of Europe. Building on those foundations, and bringing about even closer integration, depends on overcoming the individual nations’ interests, which has always presented a problem – unless the situation changes drastically. And that is precisely what is happening right now with the major crisis in the eurozone, which has brought the EU to the brink of make-or-break. Senior figures – including the European Commission President José Manuel Barroso – have declared that the only solution to the crisis and preventing it happening again is an even greater level of economic and political integration. The same conclusion has been reached by the likes of the powerful financier George Soros, who has called for a European central authority with greater powers over the member states. On the other hand, some believe that the crisis will be the downfall of the EU. And synarchists – no matter who or where they are – simply can’t let that happen.

Footnotes
1. Richard F. Kuisel, ‘The Legend of the Vichy Synarchy’, in French Historical Studies, spring 1970, 378.
2. André Ulmann and Henri Azeau, Synarchie et pouvoir (Julliard, 1968), 63.
3. Maurice Girodias, Une journée sur le terre (Éditions de la Différence, 1990), vol. I, 411.
4. The Pact was finally published in 1946 by Raoul Hussan, writing under the pseudonym Geoffrey de Charnay, in Synarchie: Panorama de 25 années d’activité occulte (Médicis).
5. Ulmann and Azeau, 64.
6. Girodias, vol. I, 149.
7. William L. Shirer, The Collapse of the Third Republic: An Enquiry into the Fall of France in 1940 (William Heinemann, 1970), 209.
8. See Shirer, 217-20.
9. Kuisel, 385.
10. Quoted in Jean-Raymond Tournoux, L’Histoire secrète (Plon, 1962), 173.

11. The allegation was made to journalist Pierre Péan, during his research for Une jeunesse française: François Mitterrand 1934-1947 (Fayard, 1994), see page 109.
12. Quoted in John Laughland, The Death of Politics: France under Mitterrand (Michael Joseph, 1994), 60.
13. Ulmann and Azeau, 116.
14. Writing in Action, 2 November 1945.
15. De Charnay, 69.
16. John Hellman, The Knight-Monks of Vichy France: Uriage, 1940-1945 (Liverpool University Press, 1997), 331.
17. Shirer, 218.
18. The report is reproduced in Ulmann and Azeau, pages 293-310. Ulmann was one of the Free French analysts, who worked alongside Mitterrand after his ‘defection’.
19. See, for example, Merry and Serge Bromberger, Jean Monnet and the United States of Europe(Coward-McCann, 1969).
20. Ulmann and Azeau, 63.
21. Marie Delarue, Un pharaon républicain (Jacques Grancher, 1999), 8.
22. Delarue, 50.

{Lynn Picknett & Clive Prince began their joint career with Turin Shroud: How Leonardo Da Vinci Fooled History and – eight books later – they have just published The Forbidden Universe. They are best known for their 1997 The Templar Revelation, which Dan Brown acknowledged as the primary inspiration for The Da Vinci Code. As a reward for their contribution they were given cameos in the movie (on the London bus). They also give talks to an international audience. Lynn & Clive both live in South London. Their website is www.picknettprince.com.}

BANKERS’ FASCISM
https://en.wikipedia.org/wiki/Executive_Intelligence_Review
http://www.american-buddha.com/shortdef.htm
http://wlym.com/archive/campaigner/8304.pdf
http://www.larouchepub.com/eiw/public/2003/eirv30n21-20030530/eirv30n21-20030530_040-the_mexico_case_the_fascist_phil.pdf
http://modernhistoryproject.org/mhp?Article=Synarchism#Synarchism
Synarchism: The Fascist Roots Of the Wolfowitz Cabal
by Jeffrey Steinberg / May 30, 2003

In 1922, Count Richard Coudenhove-Kalergi launched the Pan European Union, at a founding convention in Vienna, attended by more than 6,000 delegates. Railing against the “Bolshevist menace” in Russia, the Venetian Count called for the dissolution of all the nation-states of Western Europe and the erection of a single, European feudal state, modeled on the Roman and Napoleonic empires. “There are Europeans,” Coudenhove-Kalergi warned, who are “naïve enough to believe that the opposition between the Soviet Union and Europe can be bridged by the inclusion of the Soviet Union in the United States of Europe. These Europeans need only to glance at the map to persuade themselves that the Soviet Union in its immensity can, with the help of the [Communist] Third International, very quickly prevail over little Europe. To receive this Trojan horse into the European union would lead to perpetual civil war and the extermination of European culture. So long, therefore, as there is any will to survive subsisting in Europe, the idea of linking the Soviet Union with Pan Europe must be rejected. It would be nothing less than the suicide of Europe.”

Elsewhere, Coudenhove-Kalergi echoed the contemporaneous writings of British Fabian Roundtable devotees H.G. Wells and Lord Bertrand Russell, declaring: “This eternal war can end only with the constitution of a world republic…. The only way left to save the peace seems to be a politic of peaceful strength, on the model of the Roman Empire, that succeeded in having the longest period of peace in the west thanks to the supremacy of his legions.” The launching of the Pan European Union was bankrolled by the Venetian-rooted European banking family, the Warburgs. Max Warburg, scion of the German branch of the family, gave Coudenhove-Kalergi 60,000 gold marks to hold the founding convention. Even more revealing, the first mass rally of the Pan European Union in Berlin, at the Reichstag, was addressed by Hjalmar Schacht, later the Reichsbank head, Economics Minister and chief architect of the Hitler coup.

A decade later, in October 1932, Schacht delivered a major address before another PanEuropa event, in which he assured Coudenhove-Kalergi and the others, “In three months, Hitler will be in power…. Hitler will create PanEuropa. Only Hitler can create PanEuropa.” According to historical documents, Italy’s Fascist dictator Benito Mussolini was initially skeptical about the PanEuropa idea, but was “won over” to the scheme, following a meeting with Coudenhove-Kalergi, during which, in the Count’s words, “I gave him a complete harvest of Nietzsche’s quotes for the United States of Europe…. My visit represented a shift in the behavior of Mussolini towards PanEuropa. His opposition disappeared.” At the founding congress of the Pan European Union in Vienna, the backdrop behind the podium was adorned with portraits of the movement’s leading intellectual icons: Immanuel Kant, Napoleon Bonaparte, Giuseppe Mazzini, and Friedrich Nietzsche.

Bankers’ Fascism
The pivotal role of Schacht in the Hitler coup and in the Pan European Union, highlights a critical dimension of the universal fascist scheme: the top-down role of the financial “overworld” and its banking technocrats. By all historical accounts, Schacht was the architect, in 1930, of the Bank for International Settlements (BIS), along with the Bank of England’s Montagu Norman. Historian Carroll Quigley, in his epic book, Tragedy and Hope—A History of the World in Our Time (New York: MacMillan Company, 1966), described the BIS scheme to establish a dictatorship over world finance: “The powers of financial capital had another far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent private meetings and conferences.

The apex of the system was to be the Bank for International Settlements in Basle, Switzerland, a private bank owned and controlled by the world’s central banks which were themselves private corporations. Each central bank, in the hands of men like Montagu Norman of the Bank of England, Benjamin Strong of the New York Federal Reserve Bank, Charles Rist of the Bank of France, and Hjalmar Schacht of the Reichsbank, sought to dominate its government by its ability to control Treasury loans, to manipulate foreign exchanges, to influence the level of economic activity in the country, and to influence cooperative politicians by subsequent economic rewards in the business world.” Quigley highlighted the role of Schacht’s closest ally in the BIS scheme, Bank of England Governor Norman, who headed the privately owned British institution for an unprecedented 24 years (1920-44). “Norman was a strange man,” Quigley reported, “whose mental outlook was one of successfully suppressed hysteria or even paranoia. He had no use for governments and feared democracy. Both of these seemed to him to be threats to private banking, and thus to all that was proper and precious in human life. Strong-willed, tireless, and ruthless, he viewed his life as a kind of cloak-and-dagger struggle with the forces of unsound money which were in league with anarchy and Communism.”

Montagu Norman and Hjalmar Schacht personified the banking overworld, that bankrolled and installed Hitler and the Nazis in power, in pursuit of their larger, universal fascist scheme. Even more damning were the profiles of Schacht and Norman and their role in the Hitler project, in The Hitler Book, by a Schiller Institute research team, headed by Helga Zepp-LaRouche (New York: New Benjamin Franklin House, 1984): “The BIS, nominally set up after the breakdown of ‘normal’ international financial relations in order to prevent a downward spiraling of international payments, in fact finished off the hapless Weimar Republic by its stern refusal to come to the help of a virtually bankrupt Germany in the crucial summer of 1931, after the Danat Bank collapse had brought the whole nation to its knees. Schacht, who had been a member of the original BIS team and was to return to its board from 1933 through 1938, had been campaigning since his 1930 resignation as head of the Reichsbank, for Anglo-American support for a takeover by the NSDAP [Nazi Party] and its leader, Herr Hitler. He had resigned on March 7, 1930 and the BIS was formally established in June.

In September, he was off to London and the United States, to ‘sell’ the Nazi option to the Anglo-American leadership, notably Bank of England governor and BIS director Montagu Norman, and the already influential Dulles brothers of Sullivan & Cromwell law firm, one of America’s most influential—and the attorneys for IG Farben, and many other large German companies and provincial governments. Schacht’s Hamburg friend and colleague, patrician Nazi Gerhard Westrick, ran the correspondent law firm to Dulles’s in Germany.” On March 16, 1933, a grateful Hitler brought Schacht back as head of the Reichsbank, explained The Hitler Book. A year later, Schacht was made Economics Minister. “Now, the BIS was going to help the Third Reich—by 1939 it had no less than several hundred million Swiss gold francs invested in Germany. On the BIS board were Baron Kurt von Schröder, by now a general in the SS Death’s Head Brigade; Dr. Hermann Schmitz of IG Farben—whom Schacht had trained at the imperial economics ministry from 1915 on—and, later, Hitler’s two personal appointees, Walter Funk and Emil Puhl of the Reichsbank.”

File: ‘Synarchist/Nazi-Communist’
The larger universal fascist schema, into which the Norman-Schacht “Hitler project” fit, was well known to leading American intelligence, military, and diplomatic figures of the Franklin Roosevelt era, who maintained exhaustive files under such headings as “Synarchist/Nazi-Communist.” U.S. government archives from the FDR era, which were made available to EIR researchers, feature extensive intelligence reports on the international fascist plots, from the files of the U.S. State Department; U.S. Army Intelligence and Navy Intelligence; and the Coordinator of Information (COI), and its successor, the Office of Strategic Services (OSS).

These files are of immediate relevance today, given the ongoing coup d’état in Washington by the disciples of Leo Strauss, Alexandre Kojève, and Carl Schmitt inside the George W. Bush Administration. Kojève and Schmitt were leading figures in the wartime “Synarchist” conspiracy, and they personified the perpetuation of that universal fascist plan and apparatus into the postwar period. Already, major American and European newspapers have identified such putschists as Paul Wolfowitz, Abram Shulsky, William Kristol, John Ashcroft, Steve Cambone, and Gary Schmitt as the offspring of the late University of Chicago Prof. Leo Strauss; Strauss, in turn, was the life-long collaborator and promoter of Nazi jurist Carl Schmitt, official Nazi philosopher and Nietzsche revivalist Martin Heidegger, and French Synarchist Alexandre Kojève—all unabashed advocates of tyranny as the only appropriate form of government. Although the May 4 Sunday New York Times feature off-handedly mentions Kojève as Strauss’s colleague, without further identification, all of the major media coverage has been sanitized of any discussion of the overtly fascist/Synarchist roots of the Straussian creed. Nevertheless, there are growing indications that some elements within the U.S. political institutions—particularly the military and intelligence communities, which comprise an important element of what Lyndon LaRouche refers to as “the institution of the U.S. Presidency”—are waking up to the cruel reality that a small group of universal fascists has seized the reins of power and is steering an ill-equipped President George W. Bush, the United States, and the rest of the world into a maelstrom of perpetual war and chaos. A timely review of the history of the 20th-Century Synarchists is, therefore, in order, to enable those political circles already shocked into action, to understand the nature of the enemy, and exploit the greatest weakness of these Straussian would-be putschists—their open embrace of universal fascism, otherwise known as “Synarchism.”

The Langer Study
As EIR reported on May 9 (“Dick Cheney Has a French Connection—To Fascism”), in 1947, OSS veteran and Harvard Prof. William L. Langer assembled the official history of the Roosevelt Administration’s dealings with Vichy France. Our Vichy Gamble was based on an exhaustive review of wartime archives, buttressed by interviews with top American officials, including OSS head Gen. William Donovan and President Franklin Roosevelt himself. Langer minced no words in discussing the Synarchist circles in Vichy France. Referring to Adm. Jean François Darlan, who, along with Pierre Laval, was among the most notorious of the Vichy collaborationists with the Nazis, Langer wrote: “Darlan’s henchmen were not confined to the fleet. His policy of collaboration with Germany could count on more than enough eager supporters among French industrial and banking interests—in short, among those who even before the war, had turned to Nazi Germany and had looked to Hitler as the savior of Europe from Communism…. These people were as good fascists as any in Europe…. Many of them had long had extensive and intimate business relations with German interests and were still dreaming of a new system of ‘synarchy,’ which meant government of Europe on fascist principles by an international brotherhood of financiers and industrialists.” EIR is in possession of many of the documents that Langer reviewed, in preparing Our Vichy Gamble.

They offer an in-depth study of a fascist apparatus, whose European-wide tentacles extended into France, Germany, Britain, Spain, Italy, the Netherlands—and, across the Atlantic, inside the United States. One particularly revealing document, prepared by the Coordinator of Information in November 1940, focussed on the Synarchist strategy towards England and America. The document was called, “Synarchie and the Policy of the Banque Worms Group.” The unnamed author began, “In recent reports there have been several references to the growing political power of the Banque Worms group in France, which includes amongst its members such ardent collaborationists as Pucheu, Benoist-Mechin, Leroy-Ladurie, Bouthillier, and representatives of big French industrial organizations.” Under the subtitle, “Similarity of aims of ‘Synarchie’ and Banque Worms,” the report continued, “The reactionary movement known as ‘Synarchie’ has been in existence in France for nearly a century. Its aim has always been to carry out a bloodless revolution, inspired by the upper classes, aimed at producing a form of government by ‘technicians,’ under which home and foreign policy would be subordinated to international economy.

The aims of the Banque Worms group are the same as those of ‘Synarchie,’ and the leaders of the two groups are, in most cases, identical.” The “Banque Worms group” was closely allied with the Lazard banking interests in Paris, London, and New York, and with Royal Dutch Shell’s Henri Deterding. Hippolyte Worms, the bank’s founder, was one of 12 initial Synarchist Movement of Empire (SME) members, according to other French police and intelligence reports. The report itemized the aims of the Synarchists, as of August 1940: “to check any new social schemes which might tend to weaken the power of the international financiers and industrialists; to work for the ultimate complete control of all industry by international finance and industry; to protect Jewish and Anglo-Saxon interests; … to take advantage of Franco-German collaboration to conclude a series of agreements with German industries, thereby establishing a solid community of interests between French and German industrialists, which will tend to strengthen the hands of international finance and industry; … to effect a fusion with Anglo-Saxon industry after the war.” The author of the COI study reported, “There is reason to believe that both [Hermann] Göring and Dr. [Walther] Funk are in sympathy with these aspirations,” and that “Some headway is claimed to have been made in securing the adhesion of big U.S. industry to the movement.”

Beaverbrook and Hoare
The COI study’s segment regarding “Policy in regard to Great Britain,” elaborated the following Synarchist plan: “To bring about the fall of the Churchill Government by creating the belief in the country that a more energetic government is needed to prosecute the war; it is recognized that an effective means of creating suspicion of the Government’s efficiency would be to induce the resignation of Lord Beaverbrook; to bring about the formation of a new Government including Sir Samuel Hoare, Lord Beaverbrook and Mr. Hore-Belisha. (Note. The source has added that in the Worms group it is believed that those circles in Great Britain who are favorably disposed to their plan, are most critical of Mr. Churchill, Lord Halifax and Captain Margesson.); through the medium of Sir Samuel Hoare to bring about an agreement between British industry and the Franco-German ‘bloc'; to protect Anglo-Saxon interests on the continent; to reach an agreement for the cessation of the reciprocal bombing of industrial centers. (Note. The source has added that Göring is reputed to have signified his entire approval of this project.)” The naming of Lord Beaverbrook and Sir Samuel Hoare, two leading figures in the British Roundtable group, as Synarchist collaborators is of great significance, indicating that American intelligence, from no later than 1940, was tracking the high-level British involvement in the scheme for a postwar universal fascist “Europe of the oligarchs,” along precisely the lines spelled out in Count Coudenhove-Kalergi’s “Synarchist” manifesto, founding the Pan European Union. Indeed, other U.S. intelligence wartime documents identified the PEU as a project of the European Synarchist secret brotherhood.

The Synarchist Movement of Empire (SME), according to various accounts in the wartime U.S. files, was founded in 1917 or 1922, and the first two major “projects” of the Synarchists were Mussolini’s March on Rome and the launching of the Pan Europa movement. Back on the British front: Sir Samuel Hoare was a leading figure in British intelligence, having been posted to Russia during the period of the Bolshevik Revolution, where he had a personal hand in the assassination of Grigori Rasputin, after Rasputin had warned that Russian participation in World War I would surely lead to the fall of the Romanovs. Hoare was the leading British military intelligence case-officer for instigating the overthrow of the Tsar and the Russian Revolution.

He personified the upper echelons of what U.S. intelligence files characterized as the “Synarchist/Nazi-Communist” group. In his capacity as Foreign Secretary in 1935, he had negotiated the Hoare-Laval agreement, by which Great Britain and France mutually accepted Mussolini’s conquest by invasion of Abyssinia, a major act of appeasement. He later served as British ambassador to Francisco Franco’s Spain, and, according to several biographical accounts, remained secretly on Lord Beaverbrook’s payroll as a policy advisor. Hoare, later “Lord Templewood,” was also a leading British promoter of Frank Buchman and the Moral Rearmament Movement, the antecedent to Rev. Sun Myung Moon’s Unification Church (see EIR, Dec. 20, 2002). The case of Lord Beaverbrook (Max Aitken) has even more profound and enduring implications, given that two of the leading financial-political propagandists for today’s neo-conservative revolution in Washington—press magnates Lord Conrad Black and Rupert Murdoch—are Beaverbrook protégés.

The Australian Murdoch, on graduating Oxford, did an apprenticeship at Beaverbrook’s London Daily Express, which Murdoch referred affectionately to as “Beaverbrook’s brothel.” For Black, the connection ran deeper—through the wartime British secret intelligence high command. Conrad Black’s father, George Montagu Black, worked directly under the Beaverbrook chain of command during World War II, when Beaverbrook was Minister of Aircraft Production, and when Black and Edward Plunkett Taylor ran the Canadian front company War Supplies, Ltd. out of the Willard Hotel in Washington, coordinating all British-American-Canadian military procurement arrangements. The $1.3 billion garnered by Taylor and Black from their wartime “private” arms deals provided the seed money for G.M. Black’s postwar launching of the Argus Corp., which, today, is the Hollinger Corp. media cartel of Conrad Black.

Beaverbrook’s transformation, from a leading promoter of an Anglo-German alliance following Hitler’s takeover, to a leading war cabinet official, following Hitler’s attack on Britain, was nothing short of miraculous. In 1935, when Hoare had conducted the secret negotiations with Laval, Beaverbrook had accompanied the Foreign Secretary on the trip and conducted his own back-channel work to assure positive media coverage of the deal in both England and France. That year, Beaverbrook traveled to Rome and Berlin for personal meetings with Mussolini and Hitler. A year later, Beaverbrook was the guest of Hitler’s Foreign Minister Joachim von Ribbentrop, at the Munich Olympic Games. But the most famous part that Beaverbrook played in the Hitler saga, had to do with the 1933 Reichstag fire—the arson attack on the Weimar Republic’s parliament—which consolidated Hitler’s death grip on absolute power.

Beaverbrook had posted a trusted aide, Sefton Delmer, in charge of his Daily Express press bureau in Berlin, and Delmer had become a confidant of Hitler, traveling with him on the campaign trail during the 1933 elections. Delmer was one of the first “journalists” to arrive as the Reichstag burned, and his dispatch from the scene—complete with exclusive interviews with Hitler, Göring, and others—established the cover for the actual Nazi authors of the terror attack, which sealed Hitler’s dictatorship. Delmer, in a 1939 article recounting the incident, stuck to his story, which countered the majority of the world media coverage, and blamed the fire on a communist—not on the Nazis. Beaverbrook—even after his “Damascus road conversion” to war cabinet minister—retained his ties to the Nazi machine. When Nazi leader Rudolph Hess parachuted into Scotland, in a final vain effort to maintain the Anglo-Nazi alliance against the Soviet Union, Beaverbrook arranged a private prison interview with Hess. Details of the session are still sketchy, but one quote to emerge from the meeting, was Hess telling Beaverbrook: “Hitler likes you a great deal.”

‘Synarchism’ Defined
Among the thousands of documents that EIR obtained from the U.S. wartime archives was an 18-page French military intelligence report, summarizing a 100-page dossier on the French Synarchist groups, dated July 1941. The report dealt with the Synarchist Movement of Empire (SME), the Synarchist Revolutionary Convention (SRC) and the Secret Committee of Revolutionary Action (SCRA), the military leadership arm of the SME, also known as the “Cagoulards” (the “hooded ones”). The report provided a brief history: “The Synarchist movement is an international movement born after the Versailles Treaty, which was financed and directed by certain financial groups belonging to the top international banking community. Its aim is essentially to overthrow in every country, where they exist, the parliamentary regimes which are considered insufficiently devoted to the interests of these groups and therefore, too difficult to control because of the number of persons required to control them. “SME proposes therefore to substitute them by authoritarian regimes more docile and more easily manueverable. Power would be concentrated in the hands of the CEOs of industry and in designated representatives of chosen banking groups for each country.

In a word, the idea is to give to each country a political constitution and an appropriate national economic structure organized for the following purposes: “1. Place the political power directly into the hands of chosen people and eliminate all intermediaries. 2. Establish a maximum concentration of industries and suppress all unwarranted competition. 3. Establish an absolute control of prices of all goods (raw materials, semi-finished or finished goods). 4. Create judicial and social institutions that would prevent all extremes of action.” The dossier reported that, following failed Cagoulard insurrections in 1934 and 1937, the SME infiltrated all the economic and related ministries of the French government, conducted sabotage from within the regime, and set the basis for the Vichy government of 1940, which was dominated, from top to bottom, by Synarchist secret society members. The report named 40 top officials of the government of Marshal Henri Philippe Pétain, who were all SME members. The dossier repeatedly emphasized that the French SME was but one component of an international Synarchist apparatus, “organized and financed in all countries by certain elements of industrial CEOs and high banking circles. Its objective on the international level is to subvert all of the democratic regimes in the world, and substitute them with stronger governments, more docile and whose leaders of command in each nation are centralized in the hands of a number of affiliates belonging to big business and international banking interests which coordinate their activities around the world.” In France, under the Vichy regime, noted the dossier, “the main administrations of the country, have become the arms of Bank Worms whose administrative council controls all of the top administrators of the state.”

The Synarchists did not concentrate all their efforts on infiltrating and controlling the Vichy regime. A U.S. military intelligence report, dated July 27, 1944, from the military attaché in Algiers, warned of Synarchist penetration of the upper echelons of the Free French government of Gen. Charles de Gaulle, headquartered in Algeria. “Some of the oldest and formerly most faithful supporters of General de Gaulle are worried by what they call a tendency to let ‘Synarchism’ penetrate even the highest brackets of the Algiers Administration,” the report began. “It is believed that General de Gaulle up to recently, opposed Synarchism, which is a strongly reactionary movement, financed by the Haute Banque. He has even ordered a confidential study to be made on the subject, a copy of which has been seen by American officers.” The report concluded, “If it is a fact that many individuals who are holding positions of importance in the cabinet and the immediate entourage of General de Gaulle, are also closely associated with political ideas alien to the program which de Gaulle and his government publicly endorse, then far-reaching political inferences may be drawn.”

Of course, a decade later, leading wartime “Gaullist” Jacques Soustelle would launch the Secret Army Organization (OAS), which would be responsible for repeated assassination attempts against de Gaulle, and would be implicated in the Permindex assassination of President John F. Kennedy. While it is not certain that Soustelle was a wartime member of the Synarchist plot, it is certain, from French and American government records, that one leading Synarchist operative infiltrated into the de Gaulle Free French camp was Robert Marjolin, one of Alexandre Kojève’s prize student/protégés of his 1933-39 courses on Hegel, Nietzsche, and the “end of history.” Marjolin became Minister of Economy in the first de Gaulle postwar government, and he immediately brought Kojève into the ministry.

The Cult of Napoleon
At its core, the Synarchist international—like its front group Pan European Union—sought to create a one-world tyranny, modeled on the reign of Napoleon Bonaparte. The first “Synarchist” text was written in the 1860s by Joseph Alexandre Saint-Yves d’Alveydre (1842-1909), an occultist and follower of Napoleon Bonaparte’s own mystical advisor, Antoine Fabre d’Olivet (1767-1825). Fabre d’Olivet had started out as a leading member of the Jacobins, participating personally in the foiled assassination plot against King Louis XVI in 1789. He later served as a top official of the Interior and War Ministries under Napoleon Bonaparte. His occult writings about “purgative violence” and the “will to power”—antecedents of the works of Nietzsche—were adopted by Saint-Yves d’Alveydre, who launched the idea of Synarchism as a counter to the anarchy that had destabilized all of Europe, from 1648. Saint-Yves’ successor, Gerard Vincent Encausse (“Papus”), founded the Saint-Yves School of Occult Sciences, and began a recruiting drive for a secret society, which he called the Synarchy Government.

In his 1894 book Anarchie, Indolence & Synarchie, Papus spelled out an ambitious scheme to recruit all of the leaders of industry, commerce, finance, the military, and academia, to a single power scheme, aimed at destroying the “internal microbe” of society, anarchy. Both Saint-Yves and Papus envisioned a global Synarchist empire, divided into five geographic areas: 1. the British Empire; 2. Euro-Africa; 3. Eurasia; 4. Pan-America; 5. Asia. Indeed, Alexandre Kojève is identified in Russian sources as a leader of the so-called “Eurasians,” a group of Russian emigrés in the 1920s Berlin and Paris, led by Sir Samuel Hoare’s Guchkov and tied into the Soviet secret service project called “the Trust.” The “Eurasians” welcomed the Russian Revolution as a purgative force to wipe out corrupt Western civilization. Kojève’s own cosmology of great tyrants counted Josef Stalin and Adolf Hitler as second only to Napoleon, in achieving the “end of history” goal of a true global tyranny.

Strauss, Kojève, Schmitt, and Schacht
While none of the American archive documents reviewed to date by EIR identify Nazi jurist Carl Schmitt as a Synarchist, circumstantial evidence points to that conclusion. Schmitt was an emissary to Spain, Portugal, France, and Italy, during the height of fascism, turning out a series of juridical documents, justifying the jackboot tyrannies. Schmitt was a protected asset of Göring, the leading Synarchist figure in Nazi Germany. Like the banker Hjalmar Schacht, Schmitt was cleared of war crimes by the Nuremberg Tribunals. In effect, as documented in The Hitler Book, Schacht blackmailed the Tribunal, by aggressively asserting that he was only acting on behalf of the international financial establishment, represented by the Bank for International Settlements, in his incarnation as a top Nazi official. If backed against a wall, he threatened, he would provide evidence of the international financial cabal behind the “Hitler project.” Schacht was acquitted, over the strenuous objections of both the American and Soviet judges. In effect, the perpetrators of the Nazi Holocaust were brought to justice at Nuremberg, while the architects of the larger Synarchist scheme, like Schacht and Leo Strauss’ mentor Carl Schmitt, were given a safe conduct, and, through the efforts of postwar occupation figures like John J. McCloy and Gen. William Draper, were vetted for future service. A final note: In 1955, Schmitt was corresponding with Kojève, arranging for the Paris-based Russian emigré to address the Düsseldorf industrialists’ association—which had been a focal point of Franco-German “Synarchist” collaboration between the Nazi and Vichy governments—and meet, during that visit, with Schmitt’s close friend Schacht. It was this Kojève who maintained the closest collaboration with Leo Strauss, and who promoted his theories of purgative violence and universal tyranny with such leading Strauss disciples as Allan Bloom (the mentor of Deputy Defense Secretary Paul Wolfowitz) and Francis Fukuyama. This Synarchist stew remains Vice President Dick Cheney’s gang’s “French Connection.”

http://www.forbes.com/sites/jamesgruber/2013/05/26/central-bankers-rule-the-world/
http://www.salon.com/2014/11/10/loretta_lynchs_wall_street_friends_what_you_should_know_about_ag_nominees_finance_past/
http://www.yesmagazine.org/new-economy/economic-security-beyond-jobs
http://www.nysun.com/national/fixing-the-fed-could-emerge-as-priority/88915/

http://www.yesmagazine.org/blogs/david-korten/when-bankers-rule-the-world
http://www.globalresearch.ca/secretive-group-of-international-bankers-to-form-a-world-government/18940
http://www.globalresearch.ca/bankers-rule-city-of-london-vs-scottish-independence/5402548
http://www.washingtonsblog.com/2014/04/wars-bankers-wars.html

http://www.economist.com/news/essays/21596796-democracy-was-most-successful-political-idea-20th-century-why-has-it-run-trouble-and-what-can-be-do
http://www.vox.com/2014/4/18/5624310/martin-gilens-testing-theories-of-american-politics-explained
http://www.telegraph.co.uk/news/worldnews/northamerica/usa/10769041/The-US-is-an-oligarchy-study-concludes.html
http://www.telegraph.co.uk/news/worldnews/northamerica/usa/10731390/Why-Americas-poisonous-politics-makes-Market-Leninism-an-attractive-alternative.html

PLUS INTEREST
http://www.publicbankinginstitute.org/public_banking_and_corporate_news_when_big
_media_struggles_to_understand_local_economic_autonomy

http://ellenbrown.com/2014/11/19/wsj-reports-bank-of-north-dakota-outperforms-wall-street/
http://truth-out.org/news/item/12605-its-the-interest-stupid-why-bankers-rule-the-world
It’s the Interest, Stupid! Why Bankers Rule the World
by Ellen Brown  /  08 November 2012

In the 2012 edition of Occupy Money, Professor Margrit Kennedy writes that a stunning 35 percent to 40 percent of everything we buy goes to interest. This interest goes to bankers, financiers, and bondholders, who take a 35 percent to 40 percent cut of our GDP. That helps explain how wealth is systematically transferred from Main Street to Wall Street. The rich get progressively richer at the expense of the poor, not just because of “Wall Street greed,” but because of the inexorable mathematics of our private banking system. This hidden tribute to the banks will come as a surprise to most people, who think that if they pay their credit card bills on time and don’t take out loans, they aren’t paying interest. This, says Dr. Kennedy, is not true. Tradesmen, suppliers, wholesalers and retailers all along the chain of production rely on credit to pay their bills. They must pay for labor and materials before they have a product to sell, and before the end-buyer pays for the product 90 days later. Each supplier in the chain adds interest to its production costs, which are passed on to the ultimate consumer. Dr. Kennedy cites interest charges ranging from 12 percent for garbage collection, to 38 percent for drinking water, to 77 percent for rent in public housing in her native Germany. Her figures are drawn from the research of economist Helmut Creutz, writing in German and interpreting Bundesbank publications. They apply to the expenditures of German households for everyday goods and services in 2006; but similar figures are seen in financial sector profits in the United States, where they composed a whopping 40 percent of US business profits in 2006. That’s more than five times the 7 percent made by the banking sector in 1980. Bank assets, financial profits, interest and debt have all been growing exponentially.

110812brown 1
(Source: Adapted from Of Two Minds)

Exponential growth in financial sector profits has occurred at the expense of the non-financial sectors, where incomes have at best grown linearly.

110812brown 2(Source: Consider the Evidence)

By 2010, 1 percent of the population owned 42 percent of financial wealth, while 80 percent of the population owned only 5 percent of financial wealth. Dr. Kennedy observes that the bottom 80 percent pay the hidden interest charges that the top 10 percent collect, making interest a strongly regressive tax that the poor pay to the rich.

110812brown 3
(Source:
Who Rules America?
)

Exponential growth is unsustainable. In nature, sustainable growth progresses in a logarithmic curve that grows increasingly more slowly until it levels off (the red line in the first chart above). Exponential growth does the reverse: It begins slowly and increases over time, until the curve shoots up vertically (the chart below). Exponential growth is seen in parasites, cancers – and compound interest. When the parasite runs out of its food source, the growth curve suddenly collapses. People generally assume that if they pay their bills on time, they aren’t paying compound interest; but again, this isn’t true. Compound interest is baked into the formula for most mortgages, which comprises 80 percent of US loans. If credit cards aren’t paid within the one-month grace period, interest charges are compounded daily; and even if you pay within the grace period, you are paying 2 percent to 3 percent for the use of the card, since merchants pass their merchant fees on to the consumer. Debit cards, which are the equivalent of writing checks, also involve fees. Visa-MasterCard and the banks at both ends of these interchange transactions charge an average fee of 44 cents per transaction - though the cost to them is about 4 cents. Even if you pay cash, you are liable to be paying an additional 2 percent to 3 percent, since, until recently, merchants were not allowed to give discounts for cash payments. A July 2012 settlement with Visa and MasterCard, however, allowed merchants in the settlement to add a surcharge for credit card use.

How to Recapture the Interest: Own the Bank
The implications of all this are stunning. If we had a financial system that returned the interest collected from the public directly to the public, 35 percent could be lopped off the price of everything we buy. That means we could buy three items for the current price of two, and that our paychecks could go 50 percent farther than they go today. Direct reimbursement to the people is a hard system to work out, but there is a way we could collectively recover the interest paid to banks. We could do it by turning the banks into public utilities and their profits into public assets. Profits would return to the public, either reducing taxes or increasing the availability of public services and infrastructure. By borrowing from their own publicly-owned banks, governments could eliminate their interest burden altogether. This has been demonstrated elsewhere with stellar results, including in Canada, Australia, and Argentina, among other countries. In 2011, the US federal government paid $454 billion in interest on the federal debt – nearly one-third the total $1.1 trillion ($1,100 billion) paid in personal income taxes that year. If the government had been borrowing directly from the Federal Reserve – which has the power to create credit on its books and now rebates its profits directly to the government – personal income taxes could have been cut by a third. Borrowing from its own central bank interest-free might allow a government to eliminate its national debt altogether. In Money and Sustainability: The Missing Link, Bernard Lietaer and Christian Asperger, et al., cite the example of France. The treasury borrowed interest-free from the nationalized Banque de France from 1946 to 1973. The law then changed to forbid this practice, requiring the treasury to borrow instead from the private sector. The authors include a chart showing what would have happened if the French government had continued to borrow interest-free, versus what did happen. Rather than dropping from 21 percent to 8.6 percent of GDP, the debt shot up from 21 percent to 78 percent of GDP. “No ‘spendthrift government’ can be blamed in this case,” write the authors. “Compound
interest explains it all!”

More than Just a Federal Solution
It is not just federal governments that could eliminate their interest charges in this way. State and local governments could do it too. Consider California. At the end of 2010, it had general obligation and revenue bond debt of $158 billion. Of this, $70 billion, or 44 percent, was owed for interest. If the state had incurred that debt to its own bank – which then returned the profits to the state – California could be $70 billion richer today. Instead of slashing services, selling off public assets, and laying off employees, it could be adding services and repairing its decaying infrastructure. The only US state to own its own depository bank today is North Dakota. North Dakota is also the only state to have escaped the 2008 banking crisis, sporting a sizable budget surplus every year since then. It has the lowest unemployment rate in the country, the lowest foreclosure rate, and the lowest default rate on credit card debt. Globally, 40 percent of banks are publicly owned, and they are concentrated in countries that also escaped the 2008 banking crisis.

These are the BRIC countries – Brazil, Russia, India, and China – which are home to 40 percent of the global population. The BRICs grew economically by 92 percent in the last decade, while Western economies were floundering. Cities and counties could also set up their own banks; but in the US, this model has yet to be developed. In North Dakota, meanwhile, the Bank of North Dakota underwrites the bond issues of municipal governments, saving them from the vagaries of the “bond vigilantes” and speculators, as well as from the high fees of Wall Street underwriters and the risk of coming out on the wrong side of interest rate swaps required by the underwriters as “insurance.

“One of many cities crushed by this Wall Street “insurance” scheme is Philadelphia, which has lost $500 million on interest swaps alone. The complicated way in which the swaps work was explained in an earlier article here. Last week, the Philadelphia City Council held hearings on what to do about these lost revenues, which have gone directly into the coffers of Wall Street banks. In an October 30 article titled “Can Public Banks End Wall Street Hegemony?” Willie Osterweil discussed a solution presented at the hearings in a fiery speech by Mike Krauss, a director of the Public Banking Institute. Krauss’ solution was to do as Iceland did: Just walk away. He proposed “a strategic default until the bank negotiates at better terms.” Osterweil called it “radical,” since the city would lose it favorable credit rating. But Krauss had a solution to that problem: the city could form its own bank, and use it to generate credit from public revenues just as Wall Street banks do now. “The crux of Krauss’ argument, and most radical of all, is for the creation of a public bank,” wrote Osterweil, which “will keep the taxes and other financial assets of the people … circulating in the city, by leveraging them to provide the sustainable and affordable credit required in a modern economy to power locally directed economic development and jobs creation.” It is a radical solution whose time has come. Public banking may be a radical solution, but it is also an obvious one. This is not rocket science. By developing a public banking system, governments can keep the interest and reinvest it locally. According to Kennedy and Creutz, that means public savings of 35 percent to 40 percent. Costs can be reduced across the board; taxes can be cut or services can be increased; and market stability can be created for governments, borrowers and consumers. Banking and credit can become public utilities, feeding the economy rather than feeding off it.

the DEEP STATE (excerpts)
http://peterdalescott.net/q.html
http://www.dotnews.com/2013/suspicious-fire-kennedy-library-remains-under-investigation
http://whowhatwhy.com/2014/06/29/carlyle-groups-latest-acquisition-the-jfk-library/
http://whowhatwhy.com/2014/10/26/the-deep-state-and-the-bias-of-official-history-2/
http://www.lewrockwell.com/2014/02/peter-dale-scott/the-deep-state/
http://japanfocus.org/-Peter_Dale-Scott/4090
The State, the Deep State, and the Wall Street Overworld  /  The Asia-Pacific Journal
by Peter Dale Scott  / March 13, 2014

In the last decade it has become more and more obvious that we have in America today what the journalists Dana Priest and William Arkin have called

two governments: the one its citizens were familiar with, operated more or less in the open: the other a parallel top secret government whose parts had mushroomed in less than a decade into a gigantic, sprawling universe of its own, visible to only a carefully vetted cadre – and its entirety…visible only to God.1

And in 2013, particularly after the military return to power in Egypt, more and more authors referred to this second level as America’s “deep state.”2 Here for example is the Republican analyst Mike Lofgren:

There is the visible government situated around the Mall in Washington, and then there is another, more shadowy, more indefinable government that is not explained in Civics 101 or observable to tourists at the White House or the Capitol. The former is traditional Washington partisan politics: the tip of the iceberg that a public watching C-SPAN sees daily and which is theoretically controllable via elections. The subsurface part of the iceberg I shall call the Deep State, which operates according to its own compass heading regardless of who is formally in power.3

At the end of 2013 a New York Times Op-Ed noted this trend, and even offered a definition of the term that will work for the purposes of this essay:

DEEP STATE n. A hard-to-perceive level of government or super-control that exists regardless of elections and that may thwart popular movements or radical change. Some have said that Egypt is being manipulated by its deep state.4

The political activities of the deep state are the chief source and milieu of what I have elsewhere called “deep politics:” “all those political practices and arrangements, deliberate or not, which are usually repressed rather than acknowledged.”5

Others, like Tom Hayden, call the deep state a “state within the state,” and suggest it may be responsible for the failure of the Obama administration to follow the policy guidelines of the president’s speeches:

We have seen evidence of a “state within the state” before, going back as far as the CIA’s operations against Cuba. In Obama’s time, the president correctly named the 2009 coup in Honduras a “coup”, and then seemed powerless to prevent it.6

This development of a two-level or dual state has been paralleled by two other dualities: the increasing resolution of American society into two classes – the “one percent” and the “ninety-nine percent” – and the bifurcation of the U.S. economy into two aspects: the domestic, still subject to some governmental regulation and taxation, and the international, relatively free from governmental controls.7

All three developments have affected and intensified each other – particularly since the Reagan Revolution of 1980, which saw American inequality of wealth cease to diminish and begin to increase.8 Thus for example we shall see how Wall Street – the incarnation of the “one percent” – played a significant role in increasing the deep state after World War Two, and how three decades later the deep state played a significant role in realigning America for the Reagan Revolution.In earlier books I have given versions of this America-centered account of America’s shift into empire and a deep state. But another factor to be mentioned is the shift of global history towards an increasingly global society dominated by a few emergent superpowers. This trend was accelerated after the Industrial Revolution by new technologies of transport, from the railroad in the 19th century to the jet plane and space travel in the 20th.9 In the fallout from this rearrangement we must include two world wars, as a result of which Britain ceased to act as the dominant superpower it had been since Napoleon. Not surprisingly, the Soviet Union and the United States subsequently competed in a Cold War to fill the gap. It  was not however predetermined that the Cold War would be as thuggish and covertly violent as for decades it continued to be. For that we should look to more contingent causes on both sides of the Iron Curtain – starting with the character of Stalin and his party but also including the partly responsive development of the American deep state.

The Deep State, The Shadow Government and the Wall Street Overworld
The “deep state” was defined by the UK newsletter On Religion as “the embedded anti-democratic power structures within a government, something very few democracies can claim to be free from.”10 The term originated in Turkey in 1996, to refer to U.S.-backed elements, primarily in the intelligence services and military, who had repeatedly used violence to interfere with and realign Turkey’s democratic political process. Sometimes the definition is restricted to elements within the government (or “a state-within-the state”), but more often in Turkey the term is expanded, for historical reasons, to include “members of the Turkish underworld.”11 In this essay I shall use “deep state” in the larger sense, to include both the second level of secret government inside Washington and those outsiders powerful enough, in either the underworld or overworld, to give it direction. In short I shall equate the term “deep state” with what in 1993 I termed a “deep political system:” “ one which habitually resorts to decision-making and enforcement procedures outside as well as inside those publicly sanctioned by law and society.”12 Like myself, Lofgren suggests an ambiguous symbiosis between two aspects of the American deep state:

1)  the Beltway agencies of the shadow government, like the CIA and NSA, which have been instituted by the public state and now overshadow it, and

2)  the much older power of Wall Street, referring to the powerful banks and law firms located there.

In his words,

It is not too much to say that Wall Street may be the ultimate owner of the Deep State and its strategies, if for no other reason than that it has the money to reward government operatives with a second career that is lucrative beyond the dreams of avarice – certainly beyond the dreams of a salaried government employee.13

I shall argue that in the 1950s Wall Street was a dominating complex. It included not just banks and oil firms but also the oil majors whose cartel arrangements were successfully defended against the U.S. Government by the Wall Street law firm Sullivan and Cromwell, home to the Dulles brothers. This larger complex is what I mean by the Wall Street overworld.

http://www.nomiprins.com/presidents-bankers

The Long History of the Wall Street Overworld
Lofgren’s inclusion of Wall Street is in keeping with Franklin Roosevelt’s observation in 1933 to his friend Col. E.M. House that “The real truth … is, as you and I know, that a financial element in the larger centers has owned the Government ever since the days of Andrew Jackson.”14 FDR’s insight is well illustrated by the efficiency with which a group of Wall Street bankers (including Nelson Rockefeller’s grandfather Nelson Aldrich and Paul Warburg) were able in a highly secret meeting in 1910 to establish the Federal Reserve System – a system which in effect reserved oversight of the nation’s currency supply and of all America’s banks in the not impartial hands of its largest.15 The political clout of the quasi-governmental Federal Reserve Board (where the federal Treasury is represented but does not dominate) was clearly demonstrated in 2008, when Fed leadership secured instant support from the successive administrations of a Texan Republican president, followed by a Midwest Democratic one, for public money to rescue the reckless management of Wall Street banks: banks Too Big To Fail, and of course far Too Big To Jail, but not Too Big To Bail.16

Wall Street and the Launching of the CIA
Top-level Treasury officials, CIA officers, and Wall Street bankers and lawyers think alike because of the “revolving door” by which they pass easily from private to public service and back. In 1946 General Vandenberg, as Director of Central Intelligence (DCI), recruited Allen Dulles, then a Republican lawyer at Sullivan and Cromwell in New York, “to draft proposals for the shape and organization of what was to become the Central Intelligence Agency in 1947.” Dulles promptly formed an advisory group of six men, all but one of whom were Wall Street investment bankers or lawyers.17 Dulles and two of the six (William H. Jackson and Frank Wisner) later joined the agency, where Dulles proceeded to orchestrate policies, such as the overthrow of the Arbenz regime in Guatemala, that he had previously discussed in New York at the Council on Foreign Relations.18 There seems to be little difference in Allen Dulles’s influence whether he was a Wall Street lawyer or a CIA director. Although he did not formally join the CIA until November 1950, he was in Berlin before the start of the 1948 Berlin Blockade, “supervising the unleashing of anti-Soviet propaganda across Europe.”19 In the early summer of 1948 he set up the American Committee for a United Europe (ACUE), in support of what became by the early 1950s “the largest CIA operation in Western Europe.”20

The Deep State and Funds for CIA Covert Operations
Wall Street was also the inspiration for what eventually became the CIA’s first covert operation: the use of “over $10 million in captured Axis funds to influence the [Italian] election [of 1948].”21 (The fundraising had begun at the wealthy Brook Club in New York; but Allen Dulles, still a Wall Street lawyer, persuaded Washington, which at first had preferred a private funding campaign, to authorize the operation through the National Security Council and the CIA.)22 Dulles’s friend Frank Wisner then left Wall Street to oversee an enlarged covert operations program through the newly created Office of Policy Co-ordination (OPC).

Dulles, still a lawyer, campaigned successfully to reconstruct Western Europe through what became known as the Marshall Plan.23Together with George Kennan and James Forrestal, Dulles also “helped devise a secret codicil [to the Marshall Plan] that gave the CIA the capability to conduct political warfare. It let the agency skim millions of dollars from the plan.”24 This created one of the earlier occasions when the CIA, directly or indirectly, recruited local assets involved in drug trafficking. AFL member Irving Brown, the assistant of AFL official Jay Lovestone (a CIA asset), was implicated in drug smuggling activities in Europe, at the same time that he used funds diverted from the Marshall Plan to establish

a “compatible left” labor union in Marseilles with Pierre Ferri-Pisani. On behalf of Brown and the CIA, Ferri-Pisani (a drug smuggler connected with Marseilles crime lord Antoine Guerini), hired goons to shellack striking Communist dock workers.25

An analogous funding source for the CIA developed in the Far East: the so-called

“M-Fund,” a secret fund of money of enormous size that has existed in Japan [in 1991] for more than forty years. The Fund was established by the United States in the immediate postwar era for essentially the same reasons that later gave rise to the Marshall Plan of assistance by the U.S. to Western Europe, including the Federal Republic of Germany….. The M-Fund was used not only for the building of a democratic political system in Japan but, in addition, for all of the purposes for which Marshall Plan funds were used in Europe.26

For at least two decades the CIA lavishly subsidized right-wing parties in countries including Japan and Indonesia, possibly still using captured Axis funds.27 (One frequently encounters the claim that the source of the M-fund was gold looted by Japan during World War Two (“Yamashita’s gold”).28

As a general rule the CIA, rather than assimilating these funds into its own budget, appears to have left them off the books in the hands of cooperative allied powers – ranging from other U.S. agencies like the Economic Cooperation Administration (ECA. set up in 1948 to administer the Marshall Plan) to oil companies to powerful drug kingpins.29 The CIA never abandoned its dependency on funds from outside its official budget to conduct its clandestine operations. In Southeast Asia, in particular, its proprietary firm Sea Supply Inc., supplied an infrastructure for a drug traffic supporting a CIA-led paramilitary force, PARU.30 The CIA appears also to have acted in coordination with slush funds from various U.S. government contracts, ranging from the Howard Hughes organization to (as we shall see) the foreign arms sales of U.S. defense corporations like Lockheed and Northrop.31

{Peter Dale Scott, a former Canadian diplomat and English Professor at the University of California, Berkeley, is the author of Drugs Oil and WarThe Road to 9/11, and The War Conspiracy: JFK, 9/11, and the Deep Politics of War. His most recent book is American War Machine: Deep Politics, the CIA Global Drug Connection and the Road to Afghanistan. His website, which contains a wealth of his writings, is here.}

Notes
1 Dana Priest and William Arkin, Top Secret America: The Rise of the New American Security State (New York: Little Brown, 2011), 52.
2 E.g. Marc Ambinder and D.G. Grady, Deep State: Inside the Government Secrecy Industry (New York: Wiley, 2013); cf. John Tirman, “The Quiet Coup: No, Not Egypt. Here,” HuffingtonPost, July 9, 2013: “Now we know: the United States of America is partially governed by a deep state, undemocratic, secret, aligned with intelligence agencies, spying on friend and foe, lawless in almost every respect.”
3 Mike Lofgren, “A Shadow Government Controls America,” Reader Supported News, February 22, 2014.
4 Grant Barrett, “A Wordnado of Words in 2013,” New York Times, December 21, 2013.
5 Peter Dale Scott, Deep politics and the death of JFK (Berkeley: University of California Press, 1998), 7.
6Tom Hayden discussing the crisis in Venezuela,” Tikkun, February 25, 2014.

7 To take a single telling example, six of Sam Walton’s heirs are now reportedly wealthier than the bottom 30% of Americans, or 94.5 million people (Tim Worstall, “Six Waltons Have More Wealth Than the Bottom 30% of Americans,” Forbes, December 14, 2011). Cf. the devastating picture of a disintegrating America in George Packer, The Unwinding: An Inner History of the New America (New York: Farrar, Straus and Giroux, 2013).
8 See Kevin Phillips, The politics of rich and poor: wealth and the American electorate in the Reagan aftermath (New York: HarperCollins, 1991). Cf. John T. Stinson, The Reagan Legacy (Bloomington, IN: iUniverse, 2009), 146; Timothy Noah, The great divergence: America’s growing inequality crisis and what we can do about it (New York: Bloomsbury, 2012).
9 For the impact of railroads on expanded social awareness, see Benedict Anderson, Imagined communities: reflections on the origin and spread of nationalism (London: Verso, 1991).
10What is the Deep State?” On Religion [2013].
11 Gareth Jenkins, “Susurluk and the Legacy of Turkey’s Dirty War,” Terrorism Monitor, May 1, 2008; quoted in Peter Dale Scott, “9/11, Deep State Violence and the Hope of Internet Politics,” Global Research, June 11, 2008. For the Susurluk incident, see also Scott, American War Machine, 19-20, etc.
12 Scott, Deep Politics and the Death of JFK, xi-xii.
13 Lofgren, “ A Shadow Government Controls America.”
14 Quoted in Peter Dale Scott, The Road to 9/11: Wealth, Empire, and the Future of America, 1.

15 Forbes magazine founder Bertie Charles Forbes wrote six years later: “Picture a party of the nation’s greatest bankers stealing out of New York on a private railroad car under cover of darkness, stealthily riding hundred[s] of miles South, embarking on a mysterious launch, sneaking onto an island [the appropriately named Jekyll Island] deserted by all but a few servants, living there a full week under such rigid secrecy that the names of not one of them was once mentioned, lest the servants learn the identity and disclose to the world this strangest, most secret expedition in the history of American finance. I am not romancing; I am giving to the world, for the first time, the real story of how the famous Aldrich currency report, the foundation of our new currency system, was written” (B.C. Forbes, Leslie’s Weekly, October 19, 1916; in T. Cushing Daniel, Real money versus false money-bank credits; the most important factor in civilization and least understood by the people [Washington, D.C., The Monetary educational bureau, 1924], 169; cf. B.C. Forbes, Men who are making America [New York: Forbes Publishing Co., 1922], 398; cf. G. Edward Griffin, The Creature from Jekyll Island: A Second Look at the Federal Reserve [Westlake Village, CA: American Media, 1994]). Paul Warburg later wrote that “Though eighteen years have since gone by, I do not feel free to give a description of this most interesting conference, concerning which Senator Aldrich pledged all participants to secrecy” (Paul Warburg, The Federal Reserve System: Its Origin and Growth [New York, Macmillan, 1930], ZZ).

16 Congress was persuaded to provide perfunctory support of the bailout, under an alleged mysterious threat of martial law. See Peter Dale Scott, “Martial Law, the Financial Bailout, and War,” Global Research, January 8, 2009; reprinted in  Michel Chossudovsky and Andrew Gavin Marshall, eds., The Global Economic Crisis: The Great Depression of the XXI Century (Montreal, Global Research Publishers. Centre for Research on Globalization, 2010), 219-40; Llewellyn H. Rockwell, Jr., “Sen. Inhofe: [Henry] Paulsen [Secretary of the Treasury and former Chief Executive Officer of Goldman Sachs] Threatened Martial Law To Pass Bailout,” LewRockwell.com, November 20, 2008.
17 Richard Helms with William Hood A look over my shoulder: a life in the Central Intelligence Agency (New York: Random House, 2003), 82-83. Cf. Scott, American War Machine, 26-28.
18 Laurence H Shoup and William Minter, Imperial brain trust: the Council on Foreign Relations and United States foreign policy (New York: Monthly Review Press, 1977).
19 Gordon Thomas, Secret Wars: One Hundred Years of British Intelligence Inside MI5 and MI6 (New York: Thomas Dunne Books/ St. Martin’s Press, 2009), 98. This may have occurred during Dulles’s visit to Europe in the spring of 1947 (James Srodes, Dulles: Master of Spies [Washington: Henry Regnery, 1999], 392).
20 Richard Aldrich, The Hidden Hand: Britain, America, and Cold War secret intelligence (Woodstock, NY: Overlook Press, 2001), 343. Dulles also chaired the executive committee of the companion National Committee for a Free Europe (behind the Iron Curtain), whose legal affairs were handled by Sullivan and Cromwell (Wilson D. Miscamble, George F. Kennan and the Making of American Foreign Policy, 1947-1950 (Princeton, NJ: Princeton University Press, 1992), 204.
21 Amy B. Zegart, Flawed by Design: The Evolution of the CIA, JCS, and NSC (Stanford: Stanford UP, 1999), 189; citing Christopher Andrew, For the President’s Eyes Only (New York: HarperCollins, 1995), 172; see also Church Committee, Final Report, Book 4, 28-29.
22 David Wise and Thomas B. Ross, The Espionage Establishment (New York: Random House, 1967), 166; Scott, Road to 9/11, 13.
23 “In January 1946 Dulles outlined in some detail a reconstruction plan that is one of the earliest notions of what would, a year later, be known as the Marshall Plan” (Srodes, Allen Dulles: Master of Spies, 374).
24 Tim Weiner, Legacy of ashes: the history of the CIA (New York: Doubleday, 2007), 28.

25 Douglas Valentine, “The French Connection Revisited: The CIA, Irving Brown, and Drug Smuggling as Political Warfare,” Covert Action.
26 Norbert Schlei, “Japan’s ‘M-Fund’ Memorandum, January 7, 1991,“ JPRI [Japan Policy Research Institute] Working Paper No. 11: July 1995: “Incident to the revision of the Security Treaty [in 1960], Vice President Nixon agreed to turn over exclusive control of the M-Fund to Japan. It has been alleged that this action by Nixon was part of a corrupt political bargain, whereby it was agreed that if Japan would assist him to become President of the United States, Nixon would agree to release control of the Fund to Japan and, if he became President, would return Okinawa to Japan.”
27 “C.I.A. Spent Millions to Support Japanese Right in 50’s and 60’s,” New York Times, October 9, 1994. Cf. Scott, American War Machine, 93-94, 298-99; citing Chalmers Johnson, “The 1955 System and the American Connection: A Bibliographic Introduction,” JPRI [Japan Policy Research Institute] Working Paper No. 11: July 1995.
28 Sterling Seagrave and Peggy Seagrave, Gold warriors: America’s secret recovery of Yamashita’s gold (London: Verso, 2003). Cf. Richard Hoyt, Old Soldiers Sometimes Lie (New York: Forge, 2002), 80.
29 Scott, American War Machine, 94, etc.
30 Scott, American War Machine,
31 Norman Mailer, “A Harlot High and Low: Reconnoitering Through the Secret Government,” New York, August 16, 1976 (Hughes); Michael Schaller, Altered states: the United States and Japan since the occupation (New York: Oxford University Press, 1997), 294 (Lockheed).

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TRUE CRIME
http://spectrevision.net/2013/01/18/true-crime/
ELITE PANIC
http://spectrevision.net/2013/05/03/elite-panic/

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JUST BETWEEN US


Peer-to-peer apps send information without involving distant servers or wireless carriers.

PHONE to PHONE MESH NETWORKS
http://www.technologyreview.com/news/516571/build-your-own-internet-with-mobile-mesh-networking/
http://www.engadget.com/2014/09/29/hong-kong-secure-messaging/
http://blogs.wsj.com/digits/2014/09/29/firechat-messaging-app-gains-users-during-hong-kong-protests/
http://www.npr.org/blogs/alltechconsidered/2014/09/29/352476454/how-hong-kong-protesters-are-connecting-without-cell-or-wi-fi-networks

As throngs of pro-democracy protesters continue to organize in Hong Kong’s central business district, many of them are messaging one another through a network that doesn’t require cell towers or Wi-Fi nodes. They’re using an app called FireChat that launched in March and is underpinned by mesh networking, which lets phones unite to form a temporary Internet.

警方將會切斷中環金鐘灣仔一帶網絡,rthk已comfirm 未down firechat 快down 如果大家關注政總現場情況或會到政總, 請先到 AppStore 或 PlayStore 安裝及登入 FireChat…. http://t.co/7Pz9KbW6sr
— 黃之鋒 (@joshuawong1013) September 28, 2014

So far, mesh networks have proven themselves quite effective and quickly adopted during times of disaster or political unrest, as they don’t rely on existing cable and wireless networks. In Iraq, tens of thousands of people have downloaded FireChat as the government limits connectivity in an effort to curb ISIS communications. Protesters in Taiwan this spring turned to FireChat when cell signals were too weak and at times nonexistent.

And FireChat’s popularity is surging in Hong Kong. About 100,000 users downloaded the free FireChat app between Sunday morning and Monday morning, according to The Wall Street Journal. While there are no reports of cell-network outages so far, student leaders are recommending FireChat for fear authorities may shut off communications. Gizmodo explains why mesh networks can be critical during tense showdowns with governments:

“Mesh networks are an especially resilient tool because there’s no easy way for a government to shut them down. They can’t just block cell reception or a site address. Mesh networks are like Voldemort after he split his soul into horcruxes (only not evil). Destroying one part won’t kill it unless you destroy each point of access; someone would have to turn off Bluetooth on every phone using FireChat to completely break the connection. This hard-to-break connection isn’t super important for casual chats, but during tense political showdowns, it could be a lifeline.”

And as we have previously reported, Open Garden, the company that made FireChat and an Android mesh networking app also called Open Garden, has bigger ambitions for mesh networking:

“Once you build a mesh network … now you have a network that is resilient, self-healing, cannot be controlled by any central organization, cannot be shut down and is always working,” Christophe Daligault, Open Garden’s vice president for sales and marketing says. “I think that solves many other drawbacks or challenges of the mobile broadband Internet today.”

He says none of this would be possible without the rapid spread of smartphones, because that means no extra hardware is needed. “Each [phone] becomes a router and in a sense you’re growing the Internet — everyone who joins the mesh network creates an extension of the Internet,” Daligault says. “In a year or two from now, I think people won’t even remember that you had to be on Wi-Fi or get a cell signal to be able to communicate.”

without CELL PHONE RECEPTION
http://thinkprogress.org/world/2014/10/01/3574517/umbrella-protest-in-china/
http://www.newrepublic.com/article/119638/hong-kong-protests-behind-barricades
http://www.technologyreview.com/news/525921/the-latest-chat-app-for-iphone-needs-no-internet-connection/
The Latest Chat App for iPhone Needs No Internet Connection
by Tom Simonite  /  March 28, 2014

Mobile app stores are stuffed with messaging apps from WhatsApp to Tango and their many imitators. But FireChat, released last week for the iPhone, stands out. It’s the only one that can be used without cell-phone reception. FireChat makes use of a feature Apple introduced in the latest version of its iOS mobile software, iOS7, called multipeer connectivity. This feature allows phones to connect to one another directly using Bluetooth or Wi-Fi as an alternative to the Internet. If you’re using FireChat, its “nearby” chat room lets you exchange messages with other users within 100 feet without sending data via your cellular provider.

umbrellas

Micha Benoliel, CEO and cofounder of startup Open Garden, which made FireChat, says the app shows how smartphones can be set free from cellular networks. He hopes to enable many more Internet-optional apps with the upcoming release of software tools that will help developers build FireChat-style apps for iPhone, or for Android, Mac, and Windows devices. “This approach is very interesting for multiplayer gaming and all kinds of communication apps,” says Benoliel.

Anthony DiPasquale, a developer with consultancy Thoughtbot, says FireChat is the only app he’s aware of that’s been built to make use of multipeer connectivity, perhaps because the feature remains unfamiliar to most Apple developers. “I hope more people start to use it soon,” he says. “It’s an awesome framework with a lot of potential.

brellas

There is probably a great use for multipeer connectivity in every situation where there are people grouped together wanting to share some sort of information.” DiPasquale has dabbled in using multipeer connectivity himself, creating an experimental app that streams music from one device to several others nearby. The new feature of iOS7 currently only supports data moving directly from one device to another, and from one device to several others. However, Open Garden’s forthcoming software will extend the feature so that data can hop between two iPhones out of range of one another via intermediary devices.

teargas

That approach, known as mesh networking, is at the heart of several existing projects to create disaster-proof or community-controlled communications networks (see “Build Your Own Internet with Mobile Mesh Networking”). Apps built to exploit such device-to-device schemes can offer security and privacy benefits over those that rely on the Internet. For example, messages sent using FireChat to nearby devices don’t pass through any systems operated by either Open Garden or a wireless carrier (although they are broadcast to all FireChat users nearby).

AFP PHOTO : ALEX OGLEAlex Ogle:AFP:Getty Images

That means the content of a message and metadata could not be harvested from a central communications hub by an attacker or government agency. “This method of communication is immune to firewalls like the ones installed in China and North Korea,” says Mattt Thompson, a software engineer who writes the iOS and Mac development blog NSHipster. Recent revelations about large-scale surveillance of online services and the constant litany of data breaches make this a good time for apps that don’t rely on central servers, he says. “As users become more mindful of the security and privacy implications of technologies they rely on, moving in the direction of local, ad-hoc networking makes a lot of sense.”

brooms

However, peer-to-peer and mesh networking apps also come with their own risks, since an eavesdropper could gain access to local traffic just by using a device within range. Open Garden’s main product is an app that allows Android devices to share their Internet connections (see “Could You Spare Some Internet Access?”).

However, Benoliel says that won’t be coming to the iPhone anytime soon because the feature that FireChat relies on cannot be used to share data connectivity. Peer-to-peer mobile communications and mesh networks could prove especially important in countries with minimal communications infrastructure. “You can see Google spending billions on fiber and balloons, but this is not going to solve the problem of ubiquitous mobile connectivity,” Benoliel says. He argues that the spread of cheap Android phones across the world will make mesh networking feasible. “We need to create small Internets that can function on their own and [then] connect them to the big Internet.”

LTE RADIO
http://chinaelectionsblog.net/hkfocus/?tag=benny-tai
http://www.scmp.com/news/hong-kong/article/1603506/how-occupy-central-leaders-lost-grip-protest
http://www.technologyreview.com/news/530996/future-smartphones-wont-need-cell-towers-to-connect/
Future LTE Radio Smartphones Won’t Need Cell Towers to Connect
by Tom Simonite / September 29, 2014

A new feature being added to the LTE protocol that smartphones use to communicate with cellular towers will make it possible to bypass those towers altogether. Phones will be able to “talk” directly to other mobile devices and to beacons located in shops and other businesses. Known as LTE Direct, the wireless technology has a range of up to 500 meters, far more than either Wi-Fi or Bluetooth. It is included in update to the LTE standard slated for approval this year, and devices capable of LTE Direct could appear as soon as late 2015. LTE Direct has been pioneered by Qualcomm, which has been working on the technology for around seven years. At the mobile chip manufacturer’s Uplinq conference in San Francisco this month, it announced that it’s helping partners including Facebook and Yahoo experiment with the technology. Researchers are, for example, testing LTE Direct as a way to allow smartphones to automatically discover nearby people, businesses, and other information. Some see the technology as a potential new channel for targeted promotions or advertising.

Despite its long range, LTE Direct uses relatively little power, so a phone could be constantly looking for nearby devices without significantly draining its battery life. A device with LTE Direct active might discover other phones using the technology or communicate with beacons—fixed devices installed in businesses or integrated into the infrastructure of an airport or train station. “You can think of LTE Direct as a sixth sense that is always aware of the environment around you,” said Mahesh Makhijani, technical marketing director at Qualcomm, at a session on the technology. “The world around you is full of information, and the phone can use that to predict and to help you in your everyday life.”


Protests sprouted up in Kowloon shortly after demonstrations started on Hong Kong island. The protest site sits on the junction of two large highways and has blocked traffic.

Beacons using LTE Direct could broadcast useful information as well as special offers. A beacon installed in an airline check-in desk, for instance, might offer information on delays to people nearby who are booked on an affected flight. Facebook is exploring how the technology could be used with its mobile app. “LTE Direct would allow us to create user experiences around serendipitous interactions with a local business or a friend nearby,” said Jay Parikh, Facebook’s vice president of infrastructure engineering. “You could find out about events or do impromptu meet-ups.”

HK

LTE Direct can be used much like the iBeacons announced by Apple last year, which retailers including Macy’s are testing as a way to track and connect with shoppers’ mobile devices. However, iBeacon devices use the Bluetooth protocol, which has a much shorter range, and which not everyone leaves switched on. Yahoo has also begun developing apps that use LTE Direct, says Beverly Harrison, a principal scientist at Yahoo Labs. One is a kind of digital tour guide. If you tell the app how long you have to spare, from 10 minutes to two hours, it will suggest a route past nearby points of interest, drawing on online information about places detected using LTE Direct. Harrison says Yahoo plans to start testing the app in January.

LTE Direct could also help smooth out the network glitches that occur when large numbers of users are trying to connect to the same cell tower. R/GA, an ad agency in New York whose clients include Nike and Beats, is designing a system that would use LTE Direct to serve up to a million people in or around Times Square on New Year’s Eve. Roman Kalantari, a creative director at RG/A, says LTE Direct is the only wireless technology that could keep devices online under such conditions. RG/A and a technology consultancy called Control Group are also interested in using LTE Direct to serve targeted promotions. A smartphone could use LTE Direct to signal to nearby businesses what types of foods or products a customer is interested in so that it can offer customized deals, says Kalantari. “The idea that every retailer could be observing purchase intent is extraordinary valuable,” he says.

In theory, LTE Direct could be used to create communication apps that route all data from device to device. Some chat apps can already use Wi-Fi and Bluetooth to link up nearby phones, but LTE Direct could offer extended range and better performance. However, carriers will control which devices on their networks can use LTE Direct because it uses the same radio spectrum as conventional cellular links. Wireless carriers might even gain a new stream of revenue by charging companies that want to offer services or apps using the technology, Qualcomm says.


Hong Kong protesters #handsupfriday‬

GOVERNMENT SPYWARE
http://www.theguardian.com/world/2014/sep/30/hong-kong-pro-democracy-protest-leaders-occupy
http://qz.com/274425/here-is-the-full-text-of-the-chinese-communist-partys-message-to-hong-kong/
http://blogs.wsj.com/chinarealtime/2014/09/25/pro-beijing-media-accuses-hong-kong-student-leader-of-u-s-government-ties/
https://www.lacoon.com/lacoon-discovers-xsser-mrat-first-advanced-ios-trojan/
http://www.theverge.com/2014/10/1/6877377/sophisticated-iphone-and-android-malware-is-spying-on-hong-kong
Sophisticated iPhone and Android malware is spying on Hong Kong protesters
by Amar Toor  /  October 1, 2014


Activists in Hong Kong practice being sprayed by water cannons during a September 7, 2014, drill in preparation for upcoming civil disobedience events. (Reuters/Tyrone Siu)

A fake smartphone app is being used to remotely monitor pro-democracy protesters in Hong Kong, according to a report from the New York Times. Researchers from Lacoon Mobile Security say the phishing scam is spreading across the messaging application WhatsApp, through texts that read: “Check out this Android app designed by Code4HK for the coordination of OCCUPY CENTRAL!”, along with a link to download software. Lacoon says the software, once downloaded, can access a user’s personal data, including phone calls, text messages, and the physical location of their smartphone. Code4HK — a developer community that has helped to spread information about the protests — tells the Times it had nothing to do with the texts.


“The CIA is everywhere, including in Hong Kong. Search the net for ‘Jimmy Lai and CIA’, and one will find a series of reports of how the CIA is using Jimmy Lai (owner of an unprofitable Apple Magazine) to channel tens of millions of dollars to opposition and democratic parties in Hong Kong. Lai is now under the investigation of ICAC (HK anti-corruption agency). A number of opposition parties in Hong Kong have confessed that they accepted money from Lai and did not declare it. This is a big news in Hong Kong.”

The origin of the scam remains unknown, but Lacoon CEO Michael Shaulov says the Chinese government is likely behind it, given the location of the servers and the sophistication of the operation. The company traced it to a computer that they say is similar to those that the Chinese government allegedly used to launch cyberattacks against US targets last year.

The spread of the app remains equally unclear, though Shaulov says it was downloaded by one out of every ten phones that received the fake message. It has affected both Android and iOS users alike, although many in the security world have noted that only jailbroken iOS phones are vulnerable. “This is the first time that we have seen such operationally sophisticated iOS malware operational, which is actually developed by a Chinese-speaking entity,” Shaulov told the Times. Similar iOS malware has been distributed by FinFisher, but never before linked to China.

Today’s report comes as thousands of protesters flocked to the streets on China’s National Day, calling for Beijing to allow for free democratic elections in 2017. China had previously said it would allow Hong Kong to choose its own leader by that date, but backtracked on that promise in August, when it announced that all candidates would have to be approved by Beijing. Protesters in the “Occupy Central” movement have clashed with police since protests escalated over the weekend, and there are fears of further confrontation tonight, during National Day celebrations.


Hong Kong’s original Occupy movement

The Chinese government has gone to great lengths to censor news of the demonstrations. Most state-run media have not mentioned it, and Chinese web censors have stepped up efforts to block images and videos on social media. On Sunday, the government blocked access to Instagram within mainland China, and posts on the Twitter-like service Sina Weibo have been aggressively deleted, according to the Times. In the past few days, censors have blocked any Weibo posts including the words “Hong Kong,” “barricades,” and “umbrella” — the unofficial symbol of Hong Kong’s movement.

mainland-democracy-detained-occupy.png
Oct 3: Taken awayWang Zang 王藏, poet and vocal supporter of Occupy Central. At least seven mainlanders have been detained for their involvement in or support for the Occupy Central movement in Hong Kong, reports Human Rights In China. This does not include the Shenzhen activist who was taken away after posting photos of the Occupy Central movement on Weibo.

NETWORK BLACKOUTS
http://www.hrichina.org/en/detentions-mainland-related-occupy-central-movement-2014
http://shanghaiist.com/2014/09/29/instagram-blocked-mainland-china.php
http://advocacy.globalvoicesonline.org/2014/10/02/hong-kong-protesters-shore-up-mobile-communications-tools-in-face-of-technical-threats/
Hong Kong Protesters Shore Up Mobile Communications Tools in Face of Technical Threats
by inmediahk.net / 2 October 2014

This post was adapted in two segments from an article written by Oiwan Lam and originally published in Chinese on 1 October 2014 on citizen media platform inmediahk.net. It was translated by Loki Chu.

On September 28, after Hong Kong police unleashed tear gas on protesters, many said that they could not access the Internet with their mobile phones and had to run to Central or Wanchai districts before they could send their messages. Since then, a large number of protesters have downloaded FireChat to prepare for communication during network outages or network congestion. The FireChat application can run over a mesh network. As each mobile phone sends out a weak signal, a mesh network turns each mobile phone into a network node and links the nodes together to form a local telecommunication network that enables the exchange of messages between users. But Internet privacy and security experts warn that this software has security vulnerabilities and its users may become the targets of attacks. Calls may be intercepted and the locations of users may be tracked. The application also lacks a strong authentication system for users’ identities — it is relatively easy to impersonate another user, making the network vulnerable to infiltration by malicious actors.

Applications Anti-Monitor Connectivity System Compatibility
Serval Mesh + For communication content and metadata (location, contacts, etc.) to encrypt + Phone signal and Internet cut off time, but also be able to use - No iOS version
FireChat - Easy to be monitored: communication content and metadata can easily be accessed and monitored + Phone signal and Internet cut off time, but also be able to use + Android andiOS can be used on the system
ChatSecure + Encrypts the communication content and metadata - Can only be used when there is Internet + Android andiOS can be used on the system
Redphone(Android) /Signal (iOs) + Encrypts the communication content and metadata - Can only be used when there is mobile phone signal

Internet Society Hong Kong will organize a week with FireChat inventor Micha Benoliel the conference. The meeting will be webcast. Internet Society Hong Kong Facebook and Twitter. Chart found at https://pao-pao.net/article/194

Are there any tools that are more secure than FireChat and can be used during major network congestion? President of the Hong Kong Professional Information Security Association Eric Fan bluntly answered, “No.” He urged users not to download applications casually and not to jailbreak their iPhones or iPads because these actions are likely to pose security problems. Indeed, security vulnerabilities abound in this arena, and threats from mainland China are many. In mid-September, hackers distributed an Android application that was discovered to be spyware capable of stealing information from users’ smartphones and tracking users’ locations on Baidu Maps, a mainland Chinese version of Google Maps. The hackers disguised themselves as Code4HK, a group of tech geeks who support social movements in Hong Kong. Fan pointed out that, in fact, many applications have security vulnerabilities, and users must be vigilant in protecting their communication tools. In addition, under a good network connection, he recommends the use of Telegram. Telegram is an application similar to WhatsApp, but all communications are encrypted and users may choose to delete conversation records permanently to prevent old records from being spied upon if a user’s mobile phone or computer is confiscated. This particular point is important for activists who are targets of political persecution. It is now common practice for Hong Kong police to confiscate protest organizers’ mobile phones, and in some cases, they even obtain search warrants and confiscate personal computers for investigation. Google Talk is another common communication tools among protesters. It is prudent to develop the habit of choosing the “off-the-record” chat option so that others cannot read the chat history.

iOS SPYWARE
http://www.inmediahk.net/node/1026710
http://mobile.reuters.com/article/idUSL2N0RV2D320140930?irpc=932
Advanced iOS virus targeting Hong Kong protestors -security firm
reporting by Jim Finkle; edit by Richard Valdmanis  /  Sep 30, 2014

Cybersecurity researchers have uncovered a computer virus that spies on Apple Inc’s iOS operating system for the iPhone and iPad, and they believe it is targeting pro-democracy protesters in Hong Kong. The malicious software, known as Xsser, is capable of stealing text messages, photos, call logs, passwords and other data from Apple mobile devices, researchers with Lacoon Mobile Security said on Tuesday. They uncovered the spyware while investigating similar malware for Google Inc’s Android operating system last week that also targeted Hong Kong protesters. Anonymous attackers spread the Android spyware via WhatsApp, sending malicious links to download the program, according to Lacoon. It is unclear how iOS devices get infected with Xsser, which is not disguised as an app. Lacoon Chief Executive Michael Shaulov told Reuters that Xsser is the most sophisticated malware used to date in any known cyberattack on iOS users. “This is one the most interesting developments we have seen,” he said. “It’s the first real indication that really sophisticated guys are shifting from infecting PCs or laptops to going after iOS devices.”

The code used to control that server is written in Chinese. The high quality of the campaign and the fact it is being used to target protesters suggests that it is coming from a sophisticated attacker in China, Shaulov said. “It is the first time in history that you actually see an operationalized iOS Trojan that is attributed to some kind of Chinese entity,” he said. A Trojan is a term used by cyber researchers to describe malware that enters a device disguised as something harmless. Still, he said that his company’s research team has yet to identify any specific victims of the iOS Trojan. Lacoon said on its blog that it is possible the attackers might have deployed the Trojan in other places, in addition to spying on pro-democracy protesters in Hong Kong. “It can cross borders easily, and is possibly being operated by a Chinese-speaking entity to spy on individuals, foreign companies, or even entire governments,” they said in a blog post describing their analysis.

KILL SWITCHES
http://globalvoicesonline.org/2014/10/02/fears-of-a-network-blackout-still-loom-for-hong-kongs-pro-democracy-protesters/
by inmediahk.net  /  2 October 2014

On September 28, rumors that Hong Kong police had asked mobile phone operators to shut down network services in Hong Kong’s Admiralty area spread like wildfire. Tensions were already running high, as police had used tear gas on pro-democracy protesters just hours before. The Federation of University Student Unions, a key organization that has helped mobilize the massive sit-in dubbed Occupy Central, immediately called for protesters to retreat from the demonstration if network services were cut. On social media, messages from various sources urging protesters to download and install FireChat, a chat application that can be used over the Internet or via Bluetooth technology, went viral. The FireChat Bluetooth setting allows users within close proximity to one another to communicate without a mobile Internet connection. Scores of protesters downloaded FireChat in an effort to maintain communication during the protest in case of a network shutdown, despite the inherent security vulnerabilities that the app carries. Thus far however, a network shutdown has not taken place.

Many are now wondering if it is even possible for a network blackout to be imposed on Hong Kong. This happens on a regular basis in regions of mainland China like Xinjiang, where authorities use Internet blackouts to contain ethnic unrest among the region’s Uyghur minority. Yet network infrastructure and corporate governance is much less tightly controlled in the special administrative region of Hong Kong. Charles Mok, the legislative councillor for the Information Technology Functional Constituency, believes that the chance of a network blackout is very slim.

Two ordinances regulate the government’s power to impose a network blackout. Hong Kong’s Telecommunications Ordinance says in the face of a public emergency, if the chief executive (highest authority in the region) decides that the government must exert control over telecommunication stations, he can sign a warrant to do so and use the networks instead for public messages. Although the warrant cannot remain in effect for more than one week, successive warrants from week to week may be issued. This ordinance, however, does not define “emergency.” The region’s Emergency Regulations Ordinance states that “on any occasion in which the chief executive in Council may consider to be an occasion of emergency or public danger, he may make any regulations whatsoever that he may consider desirable in the public interest.” In other words, Hong Kong needs to be in a state of (a vaguely-defined) “emergency” for the government to demand Internet providers to shut down their networks, whether throughout the whole territory or in a specific region.

Charles Mok pointed out that the government would have difficulty exercising the power given by these two ordinances because both mobile network services and fixed line network services operate in open markets in Hong Kong. According to data provided by the Hong Kong Trade Development Council, there are a total of 20 local fixed line telecommunications network operators as of June 2013, five mobile network operators as of December 2012 and 194 Internet service providers as of June 2013. One can imagine the huge impact should a Cap 106 warrant be issued. Moreover, the warrant must be sent directly to either the CEO or CTO of the service providers, and before overseas operators receive these warrants, the network should remain connected. Charles Mok added that should the government really want to disconnect the network, it may still be done with the 3G and 4G mobile network operators, but once the network is cut, mobile phone voice services will also be terminated, and the impact will be impossible to measure.


#Hong Kong: Twitter Reverb is a Twitter-owned tool that illustrates how conversation unfolds on the social network. The blue line tracks tweet per minute

CHOKE POINTS
http://advocacy.globalvoicesonline.org/2013/12/17/in-chinas-ethnic-minority-regions-internet-blackouts-are-the-norm/
In Tibet and Uyghur Regions, Internet Blackouts Are the Norm
by Oiwan Lam  / 17 December 2013

… as we approached Aba County, something changed. I stopped getting messages on WeChat and QQ, China’s most popular mobile apps…When I tried to load e-mail, an error occurred: “Could not authenticate cellular data network: PDP authentication failure.” I still had a signal—the little 3G icon was there and everything. But the signal didn’t seem to contain any data.

Stories of Internet censorship in China often focus on surveillance and social media filtering, practices that violate the rights to free expression and privacy of all users in mainland China. But those living in remote, embattled ethnic minority regions of the country face a far more bleak reality when it comes to using the Internet.

Prolonged network shutdowns have become a regular occurrence in Uyghur and Tibetan minority regions of western China, as Christopher Beam describes in the New Republic article quoted above. Chinese authorities believe that foreign forces, such as the Tibetan Government in Exile and World Uyghur Congress are involved in the organization of separatist activities in China. Seeking to contain unrest and discontent in conflict areas, authorities have imposed Internet shutdowns, depriving individuals of their right to communication online. In some extreme cases, network shutdowns have extended to local mobile networks.

Student-led protest in Chabcha county, Tibetan Autonomous Prefecture. Photo by Students for a Free Tibet via Flickr (CC BY 2.0)

This kind of “political punishment” began in Tibetan Autonomous Prefectures with 2008 political riots in Lhasa. The Internet was shutdown in March of 2008, and briefly restored in December 2008, only to be cut off again a few months later when the first self-immolation protest took place. Internet access has remained unstable in the area ever since.

According to Tibetan dissident writer Woeser’s blog, Internet and mobile SMS connections for more than 18 counties from Garze Tibetan Autonomous Prefecture were cut off from the global Internet for at least three months beginning in February 2009. A number of counties in Aba Prefecture, predominantly Tibetan, suffered a similar fate. Connection disruptions now have become a norm in conflict areas where self-immolation protests and anti-government demonstrations are frequent. Most recently, a network shutdown occurred in Diru county, following protests against a policy that required Tibetans in a local village to put Chinese national flags on their rooftops. The Xinjiang region, mainly populated by the Muslim Uyghur minority group, has faced similar challenges. Amid protests in 2009, residents faced a nearly year-long Internet shutdown and were even deprived of telephone service for a week at the height of the unrest. Since then, network disruptions have happened on a smaller scale during politically sensitive periods. In March 2013, protests erupted after a seven-year-old Uyghur boy was stabbed to death by a Han Chinese in Piqan county of Turpan Prefecture, leading to a three-day Internet blackout. This past June, the Internet was again shut down temporarily in Urumqi to stop the spread of rumors related to forced demolitions in Piqan county — 27 people were killed [zh] in riots during a violent confrontation between protestors and police surrounding the demolitions.

These shutdowns have violated citizens’ rights to communication of expression, and have left them unable to seek information, goods, and services through the Internet. They have also given local authorities a monopoly on information — control over news and analysis of these regional conflicts now sits firmly in the hands of the government. For example, the above-mentioned demolition protest in Piqan county was characterized as a “terrorist attack” by state media. When the Uyghur community attempted to report on the situation, spreading an alternative version of the storyusing Sina Weibo, the Internet blackout expanded from Piqan county to Urumqi, the largest city in Xinjiang. Citizen journalists in Bachu county faced a similar situation last month, when both local authorities and state media quickly labeled riots as a terrorist attack, thus justifying an information crackdown. Many Han Chinese have fully embraced official state explanations of conflicts in Xinjiang and have even criticized ethnic groups for not being grateful for preferential ethnic policies, such as exemption from the One-Child Policy. As the online public sphere has been dominated by Han Chinese, mainstream public opinion has further marginalized ethnic communities in unrest areas.

Internet shutdowns in China have not been limited to areas of ethnic conflict. InJune 2009, the Internet was shut down for a few days in the Hubei province city ofShishou, following riots triggered by the alleged murder of a young woman working in a local hotel. But Shishou is connected with other cities by a major highway — information about the incident and crackdown spread through Chinese social media and was even translated into English for global readers. Ultimately, the shutdown did not paralyze the city as it might have in Xinjiang or Tibet. Within the Chinese Communist Party, many have questioned the value of this “hard” practice of social control. Softer approaches have been used in much of the country and seen as effective, but they have not been applied to far west border areas where conflict has become endemic. With state officials suggesting that ethnic minorities may be linked to terrorist organizations, they have justified harder tactics on the grounds that these groups are a risk to national security.

Thus far, Internet shutdowns in China have been regional and targeted at specific areas of unrest, with one exception — for an hour in April 2012, all users in mainland China were unable to visit overseas websites and foreign IPs could not access the Chinese network. Many speculated that the disruption was caused by the upgrade of the Chinese Great Firewall. The incident demonstrated the ability of the Chinese authority to cut off the domestic network if and when necessary.

More and more countries have begun to resort to Internet shutdowns when facing mass protests. During the Arab Spring, both the Mubarak regime in Egypt and the Assad regime in Syria severed Internet connections in an effort to control protests. A nation-wide Internet blackout took place in Sudan after riots erupted in northern Khartoum in September 2013. But while shutdowns have lasted just a few days in most of these cases, China’s minority regions face a different paradigm. Prolonged blackouts have exacerbated minority citizens’ marginalization. Literally disconnected from the rest of the country, these communities have been left on the wrong side of what appears to be a growing digital divide.

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