Tuesday, July 29, 2008

Bad News and Bank Runs

Bad News and Bank Runs

Mike Whitney
July 28, 2008

Stimulus checks

When credit-creation slows, the economy falters, unemployment rises and the misery index soars. That’s why Bush will mail out a new batch of stimulus checks whether he wants to or not; his back is up against the wall.

The Bush administration is going to be mailing out more "stimulus" checks in the very near future. There’s just no way around it. The Fed is in a pickle and can’t lower interest rates for fear that food and energy prices will shoot into the stratosphere. At the same time, the economy is shrinking faster than anyone thought possible with no sign of a rebound. That leaves stimulus checks as the only way to "prime the pump" and keep consumer spending chugging along. Otherwise business activity will slow to a crawl and the economy will tank. There’s no other choice.

The daily barrage of bad news is really starting to get on people’s nerves; it’s obvious everywhere you look. Most of the TV chatterboxes have already cut-out the cheery stock market predictions and no one is praising the "impressive powers of the free market" any more. They know things are bad, real bad. That’s why the business news is no longer presented like a happy-go-lucky Bollywood extravaganza with undulating females and exotic music. Now it’s more like B-grade slasher movie where everyone winds up dead at the end of the show.

A pervasive sense of gloom has crept into the television studios just like it has into the stock exchanges and the luxury penthouses on Manhattan’s West End. It’s palpable. That same sense of foreboding is creeping like a noxious cloud to every town and city across the country. Everyone is cutting back on non-essentials and trimming the fat from the family budget. The days of extravagant impulse-spending at the mall are over. So are the big ticket purchases and the trips to Europe. Consumer confidence is at historic lows, disposal income is a thing of the past, and credit cards are at their limit.

In the last three months bank credit has shrunk faster than any time since 1948. The banks aren’t lending and people aren’t borrowing; that’s a lethal combo. When credit-creation slows, the economy falters, unemployment rises and the misery index soars. That’s why Bush will mail out a new batch of stimulus checks whether he wants to or not; his back is up against the wall.

On Friday, after the market had closed, the FDIC shut down two more banks, First Heritage Bank and First National Bank. Kaboom. Two weeks earlier, regulators seized Indymac Bancorp following a run by depositors. The FDIC now operates like a stealth paramilitary unit, deploying its shock troops on the weekends to do their dirty work out of the public eye and at times when it will least effect the stock market. The reasons for this are obvious; there’s only one thing the government hates more than seeing flag-draped coffins on the evening news, and that’s seeing long lines of frantic people waiting impatiently to get what’s left of their savings out of their now-deceased bank. Lines at the bank signal that the system is broken.

Banks-runs are a shock to the collective psyche. When depositors see a bank run they realize that their money is not safe. People aren’t fools; they can smell a rat. When their confidence wanes, it extends to the whole system. Suddenly they start questioning everything they once took for granted. They become skeptical of the institutions which, just days earlier, seemed rock-solid.

Bank runs are a direct hit on the foundation of the free market system. Unchecked, the tremors can ripple through the entire society and trigger violent political upheaval, even revolution. The public may not grasp their significance, but everyone in Washington is paying attention. They take it seriously, very seriously.

An article in the San Francisco Business Times said that the FDIC is worried about the reporting on Internet blogs. They’d rather keep the information about the troubles in the banking system out of the news. Sheila Bair, chairman of the Federal Deposit Insurance Corp., summed it up like this after the run on Indymac:

"The blogs were a bit out of control. We’re very mindful of the media coverage and blogs in controlling misinformation. All I can say is were going to continue to stay on top of it. The misinformation that came out over the weekend fed a lot of depositors’ fears."

Is that a threat? The cure for a failed banking system is adequate capital and prudent oversight not threats to impartial critics of the system. That’s balderdash. Commissar Blair apparently believes that bloggers should be treated the same way as journalists in Iraq, who, if they veer ever so slightly from the Pentagon’s "the surge is a great triumph" script, find themselves on the smoky end of an M-16 at some unmarked checkpoint outside Baquba.

Last Sunday, sought Treasury Secretary Henry Paulson tried to reassure the public that the banking system is sound, while bracing people for more trouble ahead:

"I think it’s going to be months that we’re working our way through this period — clearly months. But again, it’s a safe banking system, a sound banking system. Our regulators are on top of it. This is a very manageable situation."

Paulson is wrong; the banking system is not sound nor is it well capitalized.

If the rate of bank closures continues at the present pace, by the middle of 2009 their will be restrictions on withdrawals. Bet on it.

So, while your bank still has money and can process your checks, it may be time to pay down debts, pay quarterly taxes and mortgage payments in advance, and think of having money outside of banks (gold, foreign currencies), etc., before your money is inaccessible or even evaporates! Don’t think all your investments outside of banks are immune from all this turmoil. For example, money market mutual funds, where Americans have invested $3 trillion, are not covered by FDIC insurance (however, money market accounts offered by banks are covered). Recent losses in some of these money market mutual funds have caused some companies to rush to plug the losses. For example, Legg Mason Inc. and SunTrust Banks Inc., recently pumped $1.4 billion each into its money market funds. Bank of America Corp. has injected $600 million.

As for your checking and savings accounts, recognize you may have five different accounts in the same bank, but the FDIC only insures individuals, not each account, up to $100,000. Putting your money in different accounts in the same bank does not necessarily provide better insurance for your deposits.

Monday, July 28, 2008

History: How the US Government Was Overthrown In Three Easy Steps

History: How the US Government Was Overthrown In Three Easy Steps

Daily Kos
July 27, 2008

So what if I told you that the powers of financial capitalism (bankers etc.), had a 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.

Fusion center

One simply cannot understand politics without understanding the significant role the ruling class plays in it - behind the scenes, and beyond the grasp of democratic oversight. Quigley is an essential introduction to what I call the adult history of the world.

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?

TocqueDeville’s diary

And what if I told you they had succeeded?

Wow! The most powerful bankers creating a world system of financial control, dominating the political system of each country and the economy of the world as a whole, with secret meetings. Surely you would think Tocque has fallen under the spell of a wild conspiracy theory.

But you can put away the cat in the tinfoil hat. Those are not my words. And it’s not a theory. They are the words of one of the greatest, most eminent historians in modern times, the late Carroll Quigley - of Harvard, Princeton and the Georgetown Foreign School.

Here is Bill Clinton referring to his former college professor Quigley at the 1992 Democratic convention:

"As a teenager, I heard John Kennedy’s summons to citizenship. And then, as a student at Georgetown I heard that call clarified by a professor named Carroll Quigley, who said to us that America was the greatest nation in history because our people had always believed in two things: that tomorrow can be better than today and that every one of us has a personal moral responsibility to make it so."

Quigley could write credibly about the far reaching aims of these ruling elites because he himself was a member of the ruling class and, as such, he was given unprecedented access to their private files and records. When he published these words in his 1300 page tome, Tragedy & Hope: A History of the World in Our Time, not only was he adding to the historical record a previously untold story, he was making history himself in doing so.

The story I am about to share is critically important. One simply cannot understand politics without understanding the significant role the ruling class plays in it - behind the scenes, and beyond the grasp of democratic oversight. Quigley is an essential introduction to what I call the adult history of the world. And it is only with this historical understanding that we can understand the forces shaping our world, and possibly hope to affect them.

The time for the common man, or at the very least the educated political class like us, to be let in on the secret has long since passed. To take our country back, we must know who exactly we are taking it back from. And we must know what their real agenda is, and their methods for achieving it. It is simply unacceptable in this information age for so many to be oblivious to the real forces of political power, and to allow those forces to operate in secrecy.

These excerpts from Quigley are just the beginning. And while his revelations are about the financial powers of the early 20th Century, they are essential for understanding the power structures that exist today.

Perhaps most importantly, his revelations help us recognize that there is indeed a power class, working behind the scenes, acting upon our government, the mass media and education to bring about a world that is very much contrary to the interests and aims of the public.

The Historian Spills the Beans

Tragedy and Hope is not a book about the ruling class, and it is certainly not a "conspiracy" book. It is, as its title says, a history of the modern world. Quigley has merely reinserted the role of the ruling powers back into the narrative where they belong for any accurate account.

But in the process, Quigley drops a number of bombshells. And I don’t mean two week press cycle bombshells. I mean rewrite history bombshells. Here is an incredibly brief synopsis of some of them, followed by the relevant excerptions. (I have linked to the excerpt that corresponds to each item. Just click the number to quickly scroll down.)


Cecil Rhodes, the founder of De Beers and creator of the Rhodes’ Trust (of which the Rhodes’ Scholarship is a part) formed a secret society with some of the wealthiest and most powerful men in Britain and New York. The primary goal of this group was to federate the English speaking world and to expand the British empire. The structure of this society was an inner circle of "initiates" and outer circles of "helpers." The outer circles were called Round Table groups.

This was during the Gilded Age and it is difficult to even comprehend the wealth of these people (I posted a pic of one of their houses just to convey). And to truly understand their aims, you have to appreciate the reach of their industry. These were the first globalists of the modern era and their vision was breathtaking in scope. They sought to create a transnational trading system that would allow them unfettered access to markets and resources worldwide with minimal red tape. In essence, they were the pioneers of globalization and national sovereignty and colonial unrest was their primary impediment.

It appears the specific goals of this group evolved over the years, and their dream of a world federation gave way to a softer, more subtle alignment. But one can only describe their general aim of recalibrating the political environment, consisting of most major nations, into a global free trading system as being highly successful.

We are witnessing now the fruition of a plan set in motion over a century ago, conceived in secret, and implemented over multiple generations. And while the modern world certainly differs from that imagined by these founders, they are truly the architects of what we may call the Anglo-American empire that thrives today. They laid the foundation, both for the transnational banking and industrial system we have now, and for the methods of exerting the power to create that system.


At this point, if this isn’t blowing your mind a bit, it’s because you already know all about Carroll Quigley and his revelations, you haven’t been reading carefully, or you think I’m off my rocker. Let me assure you, I am not a conspiracy theorist. I have zero interest in secret societies. Skull and Bones bores me. My only interest in the ruling class is their subversion, for their own aims, of American democracy, and the many crimes against humanity and nature they commit daily around the world.

It is only to the extent that they are a force in politics that I have any interest at all. Through my involvement in the entertainment industry and academic associations I have known more than a few in the ruling class (mostly their offspring) and I can tell you unequivocally that they are not all evil, Bohemian Grove is not a cult but a fancy camping trip, and that almost all the conspiracy theories you will find on the interenet are wrong. There is, as far as I know, no Illuminati or any other such bullshit. And this is not the X-Files.

What we have is pluralism meets feudalism with a hefty amount of mafia thrown in. The ruling class in the early 20th Century, as it is now, was not monolithic. And in spite of their working together to bring about one globalized order, they often compete and work against each other, just like any other political bloc. It is imperative to understand, this is not a conspiracy. It was in its conception. And the powerful certainly conspire and collude daily. But "globalization" is a movement, not too unlike the progressive movement. The difference is the globalists have literally trillions of dollars, euros, and pounds to throw around on their campaign.


The Council on Foreign Relations was a front organization for this group. This shouldn’t come as any surprise. The CFR is known well now as a trade lobby. And many also already have a pretty good idea of their role in empire maintenance. But to discover their secret origins was one of Quigley’s greatest finds. And if one has any doubt about the power of the CFR, one merely has to read this bit of homespun wisdom spoken on the Senate floor from Senator Earnest Hollings (D) of South Carolina (Congressional Record, June 30, 1993, S8315):

If you ever run for President, you get very wonderful, embossed invitations from the Council on Foreign Relations and the Trilateral Commission, and you get the coffee and fine china, and, man, you are really a high muckety-muck.

And then what they do is get you to swear on the altar of free trade an undying loyalty and support—free trade, free trade. That is all they want. And they co-opt every one of these young Senators that want to run for President.

In England, the front is called the Royal Institute of International Affairs or Chatham House.


Here Quigley describes the methods the group uses to implement its far reaching aims. I’m going to revisit this part in my next post. But this should be of special interest to us all. In fact, I place this as the most important of all of Quigley’s revelations.

"The methods can be summed up under three headings: (a) a triple-front penetration in politics, education, and journalism; (b) the recruitment of men of ability (chiefly from [certain universities) and the linking of these men to the [Group] by matrimonial alliances and by gratitude for titles and positions of power; and (c) the influencing of public policy by placing members of the [Group] in positions of power shielded as much as possible from public attention. (Carroll Quigley - The Anglo American Establishment

Thus the title of this diary - Three Easy Steps. This movement has penetrated every power structure civilized life - from politics of course, to journalism (See bombshell #4), and even down to our schools and universities, all with the goal of facilitating their control.


The group had significant control over the most powerful newspapers in the US and Britain, and infiltrated the Left-wing with such instruments as the New Republic:

The American branch of this "English Establishment" exerted much of its influence through five American newspapers (The New York Times, New York Herald Tribune, Christian Science Monitor, the Washington Post, and the lamented Boston Evening Transcript)

Here begins the excerpt section. It’s a hard read with many unfamiliar names - and some you will know. But I highly recommend reading it. There is far more treasure in here than I outlined.

#1 The Plot

This association was formally established on February 5, 1891, when Rhodes and Stead organized a secret society of which Rhodes had been dreaming for sixteen years. In this secret society Rhodes was to be leader; Stead, Brett (Lord Esher), and Lord Milner were to form an executive committee; Arthur (Lord) Balfour, (Sir) Harry Johnston, Lord Rothschild, Albert (Lord) Grey, and others were listed as potential members of a "Circle of Initiates"; while there was to be an outer circle known as the "Association of Helpers" (later organized by Milner as the Round Table organization)….Thus the central part of the secret society was established by March 1891. It continued to function as a formal group, although the outer circle was, apparently, not organized until 1909-1913.

Quigley describes the "outer", Round Table group’s formation thusly:

The Round Table Groups have already been mentioned in this book several times, notably in connection with the formation of the British Commonwealth in chapter 4 and in the discussion of appeasement in chapter 12 ("the Cliveden Set"). At the risk of some repetition, the story will be summarized here, because the American branch of this organization (sometimes called the "Eastern Establishment’ ) has played a very significant role in the history of the United States in the last generation.

The Round Table Groups were semi-secret discussion and lobbying groups organized by Lionel Curtis, Philip H. Kerr (Lord Lothian), and (Sir) William S. Marris in 1908- 1911. This was done on behalf of Lord Milner, the dominant Trustee of the Rhodes Trust in the two decades 1905-1925. The original purpose of these groups was to seek to federate the English-speaking world along lines laid down by Cecil Rhodes (1853-1902) and William T. Stead (1849-1912), and the money for the organizational work came originally from the Rhodes Trust. By 1915 Round Table groups existed in seven countries, including England, South Africa, Canada, Australia, New Zealand, India, and a rather loosely organized group in the United States (George Louis Beer, Walter Lippmann, Frank Aydelotte, Whitney Shepardson, Thomas W. Lamont, Jerome D. Greene, Erwin D. Canham of the Christian Science Monitor, and others). The attitudes of the various groups were coordinated by frequent visits and discussions and by a well informed and totally anonymous quarterly magazine, The Round Table, whose first issue, largely written by Philip Kerr, appeared in November 1910.

Money for the widely ramified activities of this organization came originally from the associates and followers of Cecil Rhodes, chiefly from the Rhodes Trust itself, and from wealthy associates such as the Beit brothers, from Sir Abe Bailey, and (after 1915) from the Astor family. Since 1925 there have been substantial contributions from wealthy individuals and from foundations and firms associated with the international banking fraternity, especially the Carnegie United Kingdom Trust, and other organizations associated with J. P. Morgan, the Rockefeller and Whitney families, and the associates of Lazard Brothers and of Morgan, Grenfell, and Company.

The chief backbone of this organization grew up along the already existing financial cooperation running from the Morgan Bank in New York to a group of international financiers in London led by Lazard Brothers. Milner himself in 1901 had refused a fabulous offer, worth up to $100,000 a year, to become one of the three partners of the Morgan Bank in London, in succession to the younger J. P. Morgan who moved from London to join his father in New York (eventually the vacancy went to E. C. Grenfell, so that the London affiliate of Morgan became known as Morgan, Grenfell, and Company). Instead, Milner became director of a number of public banks, chiefly the London Joint Stock Bank, corporate precursor of the Midland Bank. He became one of the greatest political and financial powers in England, with his disciples strategically placed throughout England in significant places, such as the editorship of The Times, the editorship of The Observer, the managing directorship of Lazard Brothers, various administrative posts, and even Cabinet positions. Ramifications were established in politics, high finance, Oxford and London universities, periodicals, the civil service, and tax-exempt foundations.

#2 Expanding the Empire to the US - Council on Foreign Relations

At the end of the war of 1914, it became clear that the organization of this system had to be greatly extended. Once again the task was entrusted to Lionel Curtis who established, in England and each dominion, a front organization to the existing local Round Table Group. This front organization, called the Royal Institute of International Affairs, had as its nucleus in each area the existing submerged Round Table Group. In New York it was known as the Council on Foreign Relations, and was a front for J. P. Morgan and Company in association with the very small American Round Table Group. The American organizers were dominated by the large number of Morgan "experts," including Lamont and Beer, who had gone to the Paris Peace Conference and there became close friends with the similar group of English "experts" which had been recruited by the Milner group. In fact, the original plans for the Royal Institute of International Affairs and the Council on Foreign Relations were drawn up at Paris. The Council of the RIIA (which, by Curtis’s energy came to be housed in Chatham House, across St. James’s Square from the Astors, and was soon known by the name of this headquarters) and the board of the Council on Foreign Relations have carried ever since the marks of their origin. Until 1960 the council at Chatham House was dominated by the dwindling group of Milner’s associates, while the paid staff members were largely the agents of Lionel Curtis. The Round Table for years (until 1961) was edited from the back door of Chatham House grounds in Ormond Yard, and its telephone came through the Chatham House switchboard.

The New York branch was dominated by the associates of the Morgan Bank. For example, in 1928 the Council on Foreign Relations had John W. Davis as president, Paul Cravath as vice-president, and a council of thirteen others, which included Owen D. Young, Russell C. Leffingwell, Norman Davis, Allen Dulles, George W. Wickersham, Frank L. Polk, Whitney Shepardson, Isaiah Bowman, Stephen P. Duggan, and Otto Kahn. Throughout its history the council has been associated with the American Round Tablers, such as Beer, Lippmann. Shepardson. and Jerome Greene.

The academic figures have been those linked to Morgan, such as James T. Shotwell, Charles Seymour, Joseph P. Chamberlain, Philip Jessup, Isaiah Bowman and, more recently, Philip Moseley, Grayson L. Kirk, and Henry M. Wriston. The Wall Street contacts with these were created originally from Morgan’s influence in handling large academic endowments. In the case of the largest of these endowments, that at Harvard, the influence was usually exercised indirectly through "State Street," Boston, which, for much of the twentieth century, came through the Boston banker Thomas Nelson Perkins.

The American Group and the CIA

Closely allied with this Morgan influence were a small group of Wall Street law firms, whose chief figures were Elihu Root, John W. Davis, Paul D. Cravath, Russell Leffingwell, the Dulles brothers (Alan Dulles was head of CIA) and, more recently, Arthur H. Dean, Philip D. Reed, and John J. McCloy. Other nonlegal agents of Morgan included men like Owen D. Young and Norman H. Davis.

Roots of the Anglo-American alliance

On this basis, which was originally financial and goes back to George Peabody, there grew up in the twentieth century a power structure between London and New York which penetrated deeply into university life, the press, and the practice of foreign policy. In England the center was the Round Table Group, while in the United States it was J. P. Morgan and Company or its local branches in Boston, Philadelphia, and Cleveland. Some rather incidental examples of the operations of this structure are very revealing, just because they are incidental. For example, it set up in Princeton a reasonable copy of the Round Table Group’s chief Oxford headquarters, All Souls College. This copy, called the Institute for Advanced Study, and best known, perhaps, as the refuge of Einstein, Oppenheimer, John von Neumann, and George F. Kennan, was organized by Abraham Flexner of the Carnegie Foundation and Rockefeller’s General Education Board after he had experienced the delights of All Souls while serving as Rhodes Memorial Lecturer at Oxford. The plans were largely drawn by Tom Jones, one of the Round Table’s most active intriguers and foundation administrators.(cont. below)

#3. The Triple Front

THE MILNER GROUP could never have been built up by Milner’s own efforts. He had no political power or even influence. All that he had was ability and ideas. The same thing is true about many of the other members of the Milner Group, at least at the time that they joined the Group. The power that was utilized by Milner and his Group was really the power of the Cecil family and its allied families such as the Lyttelton (Viscounts Cobham), Wyndham (Barons Leconfield), Grosvenor (Dukes of Westminster), Balfour, Wemyss, Palmer (Earls of Selborne and Viscounts Wolmer), Cavendish (Dukes of Devonshire and Marquesses of Hartington), and Gathorne-Hardy (Earls of Cranbrook). The Milner Group was originally a major fief within the great nexus of power, influence, and privilege controlled by the Cecil family. It is not possible to describe here the ramifications of the Cecil influence. It has been all-pervasive in British life since 1886. This Cecil Bloc was built up by Robert Arthur Talbot Gascoyne-Cecil, Viscount Cranborne and third Marquess of Salisbury (1830-1903). The methods used by this man were merely copied by the Milner Group. These methods can be summed up under three headings: (a) a triple-front penetration in politics, education, and journalism; (b) the recruitment of men of ability (chiefly from All Souls) and the linking of these men to the Cecil Bloc by matrimonal alliances and by gratitude for titles and positions of power; and (c) the influencing of public policy by placing members of the Cecil Bloc in positions of power shielded as much as possible from public attention.

#4. Controlling the Media

The American branch of this "English Establishment" exerted much of its influence through five American newspapers (The New York Times, New York Herald Tribune, Christian Science Monitor, the Washington Post, and the lamented Boston Evening Transcript). In fact, the editor of the Christian Science Monitor was the chief American correspondent (anonymously) of The Round Table, and Lord Lothian, the original editor of The Round Table and later secretary of the Rhodes Trust (1925-1939) and ambassador to Washington, was a frequent writer in the Monitor. It might be mentioned that the existence of this Wall Street, Anglo-American axis is quite obvious once it is pointed out. It is reflected in the fact that such Wall Street luminaries as John W. Davis, Lewis Douglas, Jock Whitney, and Douglas Dillon were appointed to be American ambassadors in London.

…This group wielded great influence because it controlled the Rhodes Trust, the Beit Trust, The Times of London, The Observer, the influential and highly anonymous quarterly review known as The Round Table (founded in 1910 with money supplied by Sir Abe Bailey and the Rhodes Trust, and with Lothian as editor), and it dominated the Royal Institute of International Affairs, called "Chatham House" (of which Sir Abe Bailey and the Astors were the chief financial supporters, while Lionel Curtis was the actual founder), the Carnegie United Kingdom Trust, and All Souls College, Oxford…

Infiltrating the Left-wing and the New Republic

More than fifty years ago the Morgan firm decided to infiltrate the Left-wing political movements in the United States. This was relatively easy to do, since these groups were starved for funds and eager for a voice to reach the people. Wall Street supplied both. The purpose was not to destroy … or take over but was really threefold: (1) to keep informed about the thinking of Left-wing or liberal groups; (2) to provide them with a mouthpiece so that they could "blow off steam," and (3) to have a final veto on their publicity and possibly on their actions, if they ever went "radical."

There was nothing really new about this decision, since other financiers had talked about it and even attempted it earlier. What made it decisively important this time was the combination of its adoption by the dominant Wall Street financier, at a time when tax policy was driving all financiers to seek tax-exempt refuges for their fortunes, and at a time when the ultimate in Left-wing radicalism was about to appear under the banner of the Third International.

The best example of this alliance of Wall Street and Left-wing publications was The New Republic, a magazine founded by Willard Straight, using Payne Whitney money, in 1914. Straight, who had been assistant to Sir Robert Hart (Director of the Chinese Imperial Customs Service and the head of the European imperialist penetration of China) and had remained in the Far East from 1901 to r9l:, became a Morgan partner and the firm’s chief expert on the Far East. He married Dorothy Payne Whitney whose names indicate the family alliance of two of America’s greatest fortunes. She was the daughter of William C. Whitney, New York utility millionaire and the sister and co-heiress of Oliver Payne, of the Standard Oil "trust." One of her brothers married Gertrude Vanderbilt, while the other, Payne Whitney, married the daughter of Secretary of State John Hay, who enunciated the American policy of the "Open Door" in China. In the next generation, three first cousins, John Hay ("Jock") Whitney, Cornelius Vanderbilt ("Sonny") Whitney, and Michael Whitney ("Mike") Straight, were allied in numerous public policy enterprises of a propagandist nature, and all three served in varied roles in the late New Deal and Truman administrations. In these they were closely allied with other "Wall Street liberals," such as Nelson Rockefeller.

The New Republic was founded by Willard and Dorothy Straight, using her money, in 1914, and continued to be supported by her financial contributions until March 23, 1953. The original purpose for establishing the paper was to provide an outlet for the progressive Left and to guide it quietly in an Anglophile direction. This latter task was entrusted to a young man, only four years out of Harvard, but already a member of the mysterious Round Table group, which has played a major role in directing England’s foreign policy since its formal establishment in 1909. This new recruit, Walter Lippmann, has been, from 1914 to the present, the authentic spokesman in American journalism for the Establishments on both sides of the Atlantic in international affairs. His biweekly columns, which appear in hundreds of American papers, are copyrighted by the New York Herald Tribune which is now owned by J. H. Whitney. It was these connections, as a link between Wall Street and the Round Table Group, which gave Lippmann the opportunity in 1918, while still in his twenties, to be the official interpreter of the meaning of Woodrow Wilson’s Fourteen Points to the British government.

A final word

Please use caution when reading this. There is a broader context to this that I am unable to address in this space. Quigley’s Tragedy and Hope is over 1300 pages and these citations are scattered seamlessly throughout.

The point is not to assert that there is a secret group who is pulling the strings of the modern world. It is far more complex. It is possible that there still exist the inner circle of "initiates." But I have no evidence for it. In fact, the evidence strongly suggest that after 1910 or so, the whole organization took on a new character. And it certainly got uglier.

The point is to draw light on this hidden part of our history and the inner workings of the one percent of one percent. They love the shadows and secrecy. They control the flow of information to a horrifying extent. They have untold influence over our government in ways most people can’t imagine.

And they have a perilous vision for our world. Who has jurisdiction over a transnational economy. Who can regulate it? What democratic institution can even stand up to it?

This is the central downfall of the globalization idea. As David Rothkopf observes in this Newsweek column, having a global economy is great for the pirates, but is devasting for democracy, sovereignty, and justice.

The current financial crisis is another such example, producing serious questions about the influence of the superclass. Of the world’s elites, none has strutted the world stage for the past decade like global investment bankers. Masters of money, they created something new: global markets and a constantly evolving array of securities that were both beyond the reach and the comprehension of regulators. Now, the value of some of the complex investment vehicles they created is proving to be illusory.

As a consequence, the world economy was set for the crisis that is currently unfolding. There was no effective global regulator to keep the system in check, and there was no real voice for the average Joe. The Federal Reserve stepped in to stabilize the burnout of one of these major market makers—even though they have no jurisdiction over investment banks, even though many of those supporting the bailout/buyout were the same who have long clamored for "self-regulation," even though many were the ones who had cited the moral hazard of helping to bail out homeowners and encouraging their bad borrowing behavior. And so you have a financial leadership structure that bails out investment bankers worldwide, but not homeowners.

I’ll leave you with this video clip I excerpted from the publisher of Harper’s and Texaco heir Lewis Lapham’s movie, The American Ruling CLass

"The ruling class is so able to manipulate our democracy that they really control democracy, I feel." - Walter Cronkite

Operation Gladio: CIA Network of "Stay Behind" Secret Armies

Operation Gladio: CIA Network of "Stay Behind" Secret Armies
The "Sacrifice" of Aldo Moro

Global Research, July 17, 2008

Through NATO, working with various Western European intelligence agencies, the CIA set up a network of stay behind “secret armies” which were responsible for dozens of terrorist atrocities across Western Europe over decades. This report will focus on the stay behind army in Italy, as it is the most documented. Its codename was Operation Gladio, the ‘Sword’.

An Overview

The Purpose of the ‘Stay Behind’ Armies

In the early 1950s, the United States began training networks of “stay behind” volunteers in Western Europe, so that in the event of a Soviet invasion, they would “gather intelligence, open escape routes and form resistance movements.” The CIA financed and advised these groups, later working in tandem with western European military intelligence units under the coordination of a NATO committee. In 1990, Italian and Belgian investigators started researching the links between these “stay behind armies” and the occurrence of terrorism in Western Europe for a period of 20 years.[1]

‘Secret Armies’ or Terrorist Groups?

These “stay behind” armies colluded with, funded and often even directed terrorist organizations throughout Europe in what was termed a “strategy of tension” with the aim of preventing a rise of the left in Western European politics. NATO’s “secret armies” engaged in subversive and criminal activities in several countries. In Turkey in 1960, the stay behind army, working with the army, staged a coup d’état and killed Prime Minister Adnan Menderes; in Algeria in 1961, the French stay-behind army staged a coup with the CIA against the French government of Algiers, which ultimately failed; in 1967, the Greek stay-behind army staged a coup and imposed a military dictatorship; in 1971 in Turkey, after a military coup, the stay-behind army engaged in “domestic terror” and killed hundreds; in 1977 in Spain, the stay behind army carried out a massacre in Madrid; in 1980 in Turkey, the head of the stay behind army staged a coup and took power; in 1985 in Belgium, the stay behind attacked and shot shoppers randomly in supermarkets, killing 28; in Switzerland in 1990, the former head of the Swiss stay behind wrote the US Defense Department he would reveal “the whole truth,” and was found the next day stabbed to death with his own bayonet; and in 1995, England revealed that the MI6 and SAS helped set up stay behind armies across Western Europe.[2]

The Birth of Operation Gladio

A ‘Strategy of Tension’

In 1990, the Italian Prime Minister had confirmed that Italy’s “stay behind” army, termed “Gladio” (Sword), existed since 1958, with the approval of the Italian government. In the early 1970s, Italy’s communist support was growing, so the government turned to a “Strategy of Tension” using the Gladio network. At a top secret 1972 Gladio meeting, one official referred to making a “pre-emptive attack” on the Communists. As the Guardian reported, links between Gladio in Italy, all three Italian secret services and Italy’s P2 Masonic Lodge were well documented, as the head of each intelligence unit was a member of the P2 Lodge.[3]

Setting up the Network

In 1949, the CIA helped set up the Italian secret armed forces intelligence unit, named SIFAR, staffed in part with former members of Mussolini’s secret police. It later changed its name to SID. At the end of World War 2, a former Nazi collaborator, Licio Gelli, was facing execution for his activities during the war, but managed to escape by joining the US Army Counter-Intelligence Corps. In the 1950s, Gelli was recruited by SIFAR. Gelli was also head of the P2 Masonic Lodge in Italy, and in 1969, he developed close ties with General Alexander Haig, who was then Assistant to National Security Advisor Henry Kissinger. Through this network, Gelli became chief intermediary between the CIA and General De Lorenzo, Chief of the SID.[4]

Gladio Creates ‘Tension’

Gladio was involved in a silent coup d’état in Italy, when General Giovanni de Lorenzo forced the Italian Socialist Ministers to leave the government.[5] On December 12, 1969, a bomb exploded at the National Agrarian Bank, which killed 17 people and wounded 88 others. That afternoon, three more bombs exploded in Rome and Milan. US intelligence was informed ahead of time of the bombing, but did not inform the Italian authorities.[6] In 2000, a former Italian Secret Service General stated that the CIA “gave its tacit approval to a series of bomb attacks in Italy in the 1960s and 1970s.”[7] The bombing was linked to two neofascists and to an SID agent.[8]

Testifying in a court case trying four men accused of involvement in the 1969 bank bombing in Milan, General Gianadelio Maletti, former head of military counter-intelligence from 1971 to 1975, stated that his unit discovered evidence that explosives were supplied to a right wing Italian terrorist group from Germany, and that US intelligence may have aided in the transfer of explosives. He was quoted as saying that the CIA, “following the directives of its government, wanted to create an Italian nationalism capable of halting what it saw as a slide to the left and, for this purpose, it may have made use of rightwing terrorism,” and that, “I believe this is what happened in other countries as well.”[9]

The Report

The Italian government released a 300-page report on Gladio operations in Italy in 2000, documenting connections with the United States. It declared that the US was responsible for inspiring a “strategy of tension.” In examining why those who committed the bombings in Italy were rarely caught, the report said, “those massacres, those bombs, those military actions had been organised or promoted or supported by men inside Italian state institutions and, as has been discovered, by men linked to the structures of United States intelligence.”[10]

The Red Brigades

The Red Brigades were a leftist Italian terrorist organization that was formed in 1970. In 1974, Red Brigade founders Renato Curcio and Alberto Franceschini were arrested. Alberto Franceschini later accused a top member of the Red Brigades, Mario Moretti, of turning them in, and that both Moretti and another leading Red Brigade member, Giovanni Senzani, were spies for the Italian and US secret services.[11] Moretti rose up through the ranks of the Red Brigades as a result of the arrest of the two founders.

The Red Brigades and the CIA

The Red Brigades worked closely with the Hyperion Language School in Paris, which was founded by Corrado Simioni, Duccio Berio and Mario Moretti. Corrado Simoni had worked for the CIA at Radio Free Europe, Duccio Berio had been supplying the Italian SID with information of leftist groups and Mario Moretti, apart from being accused by the Red Brigades founders as being an intelligence asset, also happened to be the mastermind and murderer of former Italian Prime Minister, Aldo Moro. An Italian police report referred to the Hyperion Language School as “the most important CIA office in Europe.”[12]

The Murder of Aldo Moro

Moro Makes Powerful Enemies

Aldo Moro, who served as Italy’s Prime Minister from 1963 until 1968 and later, from 1973 until 1976, was kidnapped and murdered by the Red Brigades in 1978, while still a prominent politician in the Christian Democrat Party. When he was kidnapped, Moro was on his way to Parliament to vote on inaugurating a new government, of which he negotiated, for the first time since 1947, to be backed by the Italian Communist Party (PCI). Moro’s policy of working with and bringing the Communists into the government was denounced by both the USSR and the United States.

Kissinger’s Threat

Moro was held for 55 days before his eventual murder. The reasoning was for his plan to bring the Communist Party into the government. Four years prior to his death, in 1974, Moro was on a visit as Italian Prime Minister, to the United States. While there, he met with US Secretary of State Henry Kissinger, who told Moro, “`You must abandon your policy of bringing all the political forces in your country into direct collaboration... or you will pay dearly for it.”[13]

Moro was “Sacrificed”

Steve Pieczenik, a former State Department hostage negotiator and international crisis manager, “claimed that he played a critical role in the fate of Aldo Moro.” Pieczenik “said that Moro had been "sacrificed" for the "stability" of Italy.” He had been sent to Italy by President Jimmy Carter on the day of Moro’s kidnapping to be part of a crisis committee, of which he said was “jolted into action by the fear that Moro would reveal state secrets in an attempt to free himself.” The action the committee took was to leak a memo saying that Moro was dead, and to have the memo attributed to the Red Brigades. The purpose of this was to “prepare the Italian public for the worst and to let the Red Brigades know that the state would not negotiate for Moro, and considered him already dead.”[14] In a documentary on the subject, Pieczenik stated that, “The decision was made in the fourth week of the kidnapping, when Moro's letters became desperate and he was about to reveal state secrets,” and that, “It was an extremely difficult decision, but the one who made it in the end was interior minister Francesco Cossiga, and, apparently, also prime minister Giulio Andreotti.”[15]

Moro’s Letters

Among Moro’s released letters, which he was writing while in captivity, he stated that he feared that a shadow organization, with “other secret services of the West ... might be implicated in the destabilisation of our country.”[16] During his interrogation while in captivity, Moro even referred to “Nato's anti-guerrilla activities.” However, the Red Brigades did not use this information,[17] perhaps because, according to the founders of the Red Brigades, the leader of the organization at the time of Moro’s kidnapping, Mario Moretti, was working for the Italian or US intelligence services.[18]

Maverick Journalist Killed by President?

Shortly after Moro’s death, Italian journalist, Mino Pecorelli, a man with “excellent secret service contacts,” voiced his suspicion in a 1978 article that Moro’s death was linked to Gladio, which was not officially acknowledged until 1990. A year after Moro’s death, Pecorelli was shot dead in Rome. He claimed that the kidnapping of Moro was committed by a “lucid superpower.” In 2002, former seven-term Prime Minister, Giulio Andreotti, was convicted of “ordering” Pecorelli's murder.[19] Pecorelli was about to publish a book “containing damaging criticisms of [Prime Minister Giulio] Andreotti by murdered Christian Democratic leader Aldo Moro.”[20]

The Bologna Bombing

On the morning of August 2, 1980, Italy experienced its worst-ever terrorist attack at Bologna train station, which killed 85 people, and wounded more than 200 others. A long and complicated investigation was undertaken, and eventually, a trial began. In 1988, four right-wing terrorists were sentenced to life in prison. Two other defendants were convicted of slandering the investigation, “Francesco Pazienza, a former financier linked to several criminal cases in Italy, and Licio Gelli, the former grandmaster of the so-called P-2 Masonic lodge.”[21] This is the very same Licio Gelli who happened to be a CIA intermediary for the head of Italian intelligence for the Gladio network. Although later on, Gelli was acquitted of the charges.


[1] Bruce W. Nelan, Europe Nato's Secret Armies. Time Magazine: November 26, 1990:

2] PHP, Secret Warfare: Operation Gladio and NATO's Stay-Behind Armies. ISN:

[3] Ed Vulliamy, Secret agents, freemasons, fascists... and a top-level campaign of political 'destabilisation'. The Guardian: December 5, 1990:

4] Arthur E. Rowse, GLADIO: THE SECRET U.S. WAR TO SUBVERT ITALIAN DEMOCRACY. Covert Action Quarterly: December 1994

[5] PHP, Secret Warfare: Operation Gladio and NATO's Stay-Behind Armies. ISN:

[6] Philip Willan, US 'supported anti-left terror in Italy'. The Guardian: June 24, 2000:

[7] CBC, CIA knew, but didn't stop bombings in Italy – report. CBC News: August 5, 2000:

[8] Peter Dale Scott, The Road to 9/11: Wealth, Empire, and the Future of America. University of California Press, 2007: page 181

[9] Philip Willan, Terrorists 'helped by CIA' to stop rise of left in Italy. The Guardian: March 26, 2001: http://www.guardian.co.uk/world/2001/mar/26/terrorism

[10] Philip Willan, US 'supported anti-left terror in Italy'. The Guardian: June 24, 2000:

[11] Philip Willan, Infiltrators blamed for murder of Italian PM. The Guardian: April 10, 1999:

[12 – 13] Arthur E. Rowse, GLADIO: THE SECRET U.S. WAR TO SUBVERT ITALIAN DEMOCRACY. Covert Action Quarterly: December 1994

[14] Malcolm Moore, US envoy admits role in Aldo Moro killing. The Telegraph: March 16, 2008:

[15] Saviona Mane, A murder still fresh. Haaretz: May 9, 2008:

[16] Ed Vulliamy, Secret agents, freemasons, fascists... and a top-level campaign of political 'destabilisation'. The Guardian: December 5, 1990:

[17] Philip Willan, Moro's ghost haunts political life. The Guardian: May 9, 2003:

[18] Philip Willan, Infiltrators blamed for murder of Italian PM. The Guardian: April 10, 1999:

[19] Philip Willan, Moro's ghost haunts political life. The Guardian: May 9, 2003:

[20] BBC News, Giulio Andreotti: Mr Italy. BBC: October 23, 1999:

[21] AP, Four Get Life in Prison In Bombing in Bologna. The New York Times: July 12, 1988:

Andrew G. Marshall
contributed to breaking the Climate Change consensus in a celebrated 2006 article entitled
Global Warming A Convenient Lie, in which he challenged the findings underlying Al Gore's documentary. According to Marshall, 'as soon as people start to state that “the debate is over”, beware, because the fundamental basis of all sciences is that debate is never over'. Andrew Marshall has also written on the militarization of Central Africa, national security issues and the process of integration of North America. He is also a contributor to GeopoliticalMonitor.com
He is currently a researcher at the Centre for Research on Globalization (CRG) in Montreal and is studying political science and history at Simon Fraser University, British Columbia.

Andrew G. Marshall is a frequent contributor to Global Research. Global Research Articles by Andrew G. Marshall

The BBC and 9/11 - Image review

The BBC has produced various slanderous ' hit ' pieces against the 9/11 truth movement.

We have watched as the BBC announced that building 7 had collapsed BEFORE it actually did.

But the last hit piece titled " 9/11 third tower mystery 'solved' " just revealed much more about the TRUE nature of the event. What Im interested in is the picture they used for the article, here it is below:

Light reflection from falling debris right? Notice the verticle pattern on the face of white squibs, that is consistent with demolition charges, and on the far right bottom we see thermite burning. I really love these images because on the building(the shorter one) in front center of the image, we see windows for comparison, which means an expansive opening in the building structure. Explosives would also create an opening in the building, and that is just what we see at the marked positions.

Below will be more images of the BBC image, that will have filters applied to them.

These same features can be seen all over the buildings, at various periods of time. Below are images taken directly from the Naudet brothers video sequences of the first plane hitting. Notice the bulge emanating many floors above the impact zone. The video below also shows frame by frame this sequence.

The video below is the " Freeman Perspective" interview of Paul Laffoley, as describes the connections between the Bin Laden building company and 9/11.

So as we can see, there is more to meet the eyes than we think, and the subject is far from over, in fact it is just beginning to gear up!!!

Neo Conned by Rick Williams

A nice little bit of psy from our ole friends at the supposed breaking of the matrix. I really dont think most of the people there even really know what the true matrix is.

"A couple of weeks ago, I posted a column titled "Are Jewish People Welcome Here?" My answer-- yes they are. Not all Zionists are neocons; and not all neocons are Zionists. I argued in the earlier column that our freedom movement has many Jewish friends and supporters, and it is both inaccurate and bad strategy for freedom lovers to blame a small minority of the American people for the many problems that exist at home and abroad. Indeed, what kind of people are we to think that a tiny handful of AIPAC types could possibly control a great nation like ours for long? As "V" said in the movie classic V For Vendetta (see my "Jew Bashing" column): if we want to learn what's wrong in this country, we need only look in the mirror. Once the American people elect to throw off these dark people in Washington DC and Wall Street who've plundered and bankrupted our nation, the process will be as simple as making the decision to do so and acting on that decision. Our adversaries have no mystical powers; and their corrupt system is collapsing in front of our eyes even as I write these words. Our adversaries are weak, ladies and gentlemen, and they have nothing to offer but decline, and failure, and bankruptcy and debt. The strength of our ideas can easily overcome such things.

But how? Where can the truth be found and spoken in a matrix of lies? How do we break up this close knit alliance of banksters, war profiteers, media lapdogs and corrupt politicians that seek to control the world we live in? How do we build the political power that will be needed to defeat these people in a nonviolent way? The answer, I suggest, is simple and straightforward-- COMMUNITY! Political power IS community. Isolated individuals and small groups can be easily marginalized and pushed into the irrelevant fringe. We've all seen the effect of isolation-- and we know to a certainty that isolation is a strategy eternally doomed to failure. Our leaders are not fools, and they actively seek to keep us separated and apart-- for very good reason. They know, as we do, that a vibrant community of freedom lovers can quickly displace the charlatans who presently control our money and our country. And they know, as we do, that once we succeed in building community, their failed leadership will be only for the moment.

Which brings me to 9-11 truthers and the point of this column. Are 9-11 truthers welcome here? Our answer-- of course they are! Freedom people who question the 9-11 Commission Report are among the strongest voices out there. We need their passion; their energy; their commitment to truth. Very simply, (and imho), we all should recognize that 9-11 truthers are an important part of the freedom community.

This is not to say that any of us need to accept their proffered evidence at face value. 9-11 truthers make interesting and intriguing arguments about deficiencies in the official report, but I think it's fair to say that an impartial observer will quickly point to gaping holes and shortcomings in truther positions as well. At this point, (again, imho), the best that can be said is that the 9-11 story has yet to be written in full. To the extent that 9-11 truthers are asking questions; gathering evidence; asserting plausible arguments-- where can there be a legitimate objection to this sort of truth seeking activity? The call for fresh and unbiased investigation has been supported by Ron Paul among many others, and we at BreakTheMatrix think Dr. Paul's position on further study is right on the mark.

The deeper questions, however, are those of priority and strategy. The search for 9-11 truth, by definition, is an effort that looks backward in time, while we at BreakTheMatrix think our movement should be forward looking. The 9-11 truth effort is to assign accountability (blame?) for events that occurred years ago, while we at BreakTheMatrix perceive that it is much more important to create a vision for the better America of the future. 9-11 truth is a strategy for solving old mysteries, but we at BreakTheMatrix think the sounder approach is to focus on creating a stronger and more prosperous America now, and for our children. Very simply, we at BreakTheMatrix have a fundamentally different strategy for success than is found in the 9-11 movement, and to that extent, we think their movement is not on target.

Finally, there's the issue of tone. Would any of us suggest that the American people will respond favorably to a negative message? Optimism; hope; peace; prosperity-- these are the things that we at BreakTheMatrix believe should be presented as "truth;" and all of these things become possible once the plunderers are swept away. A positive tone is what's needed, and that's where we perceive our focus should be. So join us, 9-11 truthers-- on the bright side. -

Sunday, July 27, 2008

Behaviourism, Psycho-Analysis and Physiological Manipulation in Education: The Scientific Outlook Part 5

Behaviourism, Psycho-Analysis and Physiological Manipulation in Education: The Scientific Outlook Part 5

Brent Jessop
IntelStrike Blog Network
July 27, 2008

“Education in a scientific society may, I think, be best conceived after the analogy of the education provided by the Jesuits. The Jesuits provided one sort of education for the boys who were to become ordinary men of the world, and another for those who were to become members of the Society of Jesus. In like manner, the scientific rulers will provide one kind of education for ordinary men and women, and another for those who are to become holders of scientific power. Ordinary men and women will be expected to be docile, industrious, punctual, thoughtless, and contented. Of these qualities probably contentment will be considered the most important. In order to produce it, all the researches of psycho-analysis, behaviourism, and biochemistry will be brought into play.” - Bertrand Russell, 1931 (p243)

This article will examine the use of behaviourism, psycho-analysis and physiological manipulation as applied to education as discussed in Bertrand Russell’s 1931 book The Scientific Outlook [1].

Bertrand Arthur William Russell, 3rd Earl Russell (1872-1970) was a renowned British philosopher and mathematician who was an adamant internationalist and worked extensively on the education of young children. This included running an experimental school in the 1920’s with his second wife Dora Black. He was the founder of the Pugwash movement which used the spectre of Cold War nuclear annihilation to push for world government. Among many other prizes, Russell was awarded the Nobel Prize in Literature in 1950 and UNESCO’s (United Nations Educational, Scientific, and Cultural Organization) Kalinga prize for the popularization of science in 1957.

Part 1 of this series examined science as power-thought and the use of scientific technique to increase the power of an elite scientific minority over the unscientific masses. Part 2 examined the composition of the society of experts who would use scientific technique to dominate the masses. At the forefront of this society of experts is the expert “manipulator”, whom Lenin is the archetype. This society would also aim to conceal its power and influence behind political veils like democracy. Part 3 explored the application of scientific technique to education with an emphasis on the distinction between education for the “governing class” and “working class”. Part 4 looked at the use of education, the Press, radio and Hollywood as forms of propaganda.

Behaviourism and Psycho-Analysis

From The Scientific Outlook:

[Italicised text is original emphasis and bolded text is added by author.]

“As a technique for acquiring power, behaviourism is, I think, superior to psycho-analysis: it embodies the methods which have always been adopted by those who train animals or drill soldiers; it utilizes the force of habit, the strength of which has always been recognized; and, as we saw when we were considering Pavlov, it makes it possible both to cause and to cure neurasthenia and hysteria. The conflicts which appear in psycho-analysis as emotional re-appear in behaviourism as conflicts between habits, or between a habit and a reflex. If a child were severely beaten every time it sneezed, it is probable that a phantasy world would in time build itself up in his mind around the conception of sneezing; he would dream of Heaven as a place where the spirits of the blest sneeze unceasingly, or on the contrary he might think of Hell as a place of punishment for those who live in open sternutation. In this sort of way the problems brought to the fore by psycho-analysis can, I think, be dealt with on behaviourist lines. At the same time it should be admitted that these problems, whose importance is very great, would probably not have come to the fore but for the psycho-analytic approach. For the practical purposes of educational technique, I think it will be found that the educator should behave as a psycho-analyst when he is concerned with matters touching powerful instincts, but as a behaviourist in matters which a child views as emotionally unimportant. For example, affection for parents should be viewed in the psycho-analytic manner, but brushing teeth in the behaviourist manner.” - 182

“The most important applications of psycho-analytic theory are to education. These applications are as yet in an experimental stage, and owing to the hostility of the authorities they can only be made on a very small scale. It is, however, already evident that moral and emotional education has hitherto been conducted on wrong lines, and has produced maladjustments which have been sources of cruelty, timidity, stupidity, and other unfortunate mental characteristics. I think it possible that psycho-analytic theory may be absorbed into something more scientific, but I do not doubt that something of what psycho-analysis has to suggest in regard to education will be found permanently valid and of immense importance.” - 181

Physiological Manipulation

“So far, no experiments have been made to test the effect of X-rays on the human embryo. I imagine that such experiments would be illegal, in common with many others that might make valuable additions to our knowledge. Sooner or later, however, probably in Russia, such experiments will be made. If science continues to advance as fast as it has done recently, we may hope, before the end of the present century, to discover ways of beneficially influencing the human embryo, not only as regards those acquired characters which cannot be inherited because they do not affect the chromosomes, but also as regards the chromosomes themselves. It is likely that this result will only be achieved after a number of unsuccessful experiments leading to the birth of idiots and monstrosities. But would this be too high a price to pay for the discovery of a method by which, within one generation, the whole human race could be rendered intelligent? Perhaps by a suitable choice of chemicals to be injected into the uterus it may become possible to turn a child into a mathematician, a poet, a biologist, or even a politician, and to ensure that all his posterity shall do likewise unless prevented by counter-irritant chemicals.” - 172

“So far we have been considering those ways of influencing the mental life which proceed by mental means as in psycho-analysis, or by means of the conditioned reflex as in behaviourism. There are, however, other methods which may in time prove of immense importance. These are the methods which operate through physiological means, such as the administering of drugs. The curing of cretinism by means of iodine is so far the most remarkable of these methods. In Switzerland all salt for human consumption is obliged by law to be iodized, and this measure has been found adequate as a preventive of cretinism. The work of Cannon and others concerning the influence of the ductless glands upon the emotions has become widely known, and it is clear that by administering artificially the substances which the ductless glands provide, a profound effect can be produced upon temperament and character. The effects of alcohol, opium, and various other drugs have long been familiar, but these effects are on the balance harmful unless the drug is taken with unusual moderation. There is, however, no a priori reason why drugs should not be discovered which have a wholly beneficial effect. I have never myself observed any but good effects to flow from the drinking of tea, at any rate if it is China tea. It is possible also that psychological marvels may become possible through pre-natal treatment. One of the most eminent philosophers of our day regards his superiority to his brothers, perhaps humorously, as due to the fact that shortly before his birth his mother was in a carriage which rolled down the Simplon in an accident. I do not suggest that this method should be adopted in the hope of turning us all into philosophers, but perhaps in time we shall discover some more peaceable means of endowing the foetus with intelligence. Education used to begin at eight years old with the learning of the Latin declensions; now, under the influence of psycho-analysis, it begins at birth. It is to be expected that with the advance of experimental embryology the important part of education will be found to be pre-natal. This is already the case with fishes and newts, but in regard to them the scientist is not hampered by education authorities.

The power of psychological technique to mould the mentality of the individual is still in its infancy, and is not yet fully realized. There can, I think, be little doubt that it will increase enormously in the near future. Science has given us, in succession, power over inanimate nature, power over plants and animals, and finally power over human beings. Each power involves its own kinds of dangers, and perhaps the dangers involved in power over human beings are the greatest, but that is a matter that we will consider at a later stage.” - 183

“Whether men will be happy in the Paradise I do not know. Perhaps biochemistry will show us how to make any man happy, provided he has the necessaries of life; perhaps dangerous sports will be organized for those whom boredom would otherwise turn into anarchists; perhaps sport will take over the cruelty which will have been banished from politics; perhaps football will be replaced by play battles in the air in which death will be the penalty of defeat, they will not mind having to seek it in a trivial cause: to fall through the air before a million spectators may come to be thought a glorious death even if it may be that in some such way a safety valve can be provided for the anarchic and violent forces in human nature; or again, it may be that by wise education and suitable diet men may be cured of all their unruly impulses, and all life may become as quiet as a Sunday school.” 214

Bertrand Russell would later write in a similar book entitled The Impact of Science on Society (1952) [2] that:

“It is to be expected that advances in physiology and psychology will give governments much more control over individual mentality than they now have even in totalitarian countries. Fichte laid it down that education should aim at destroying free will, so that, after pupils have left school, they shall be incapable, throughout the rest of their lives, of thinking or acting otherwise than as their schoolmasters would have wished. But in his day this was an unattainable ideal: what he regarded as the best system in existence produced Karl Marx. In future such failures are not likely to occur where there is dictatorship. Diet, injections, and injunctions will combine, from a very early age, to produce the sort of character and the sort of beliefs that the authorities consider desirable, and any serious criticism of the powers that be will become psychologically impossible. Even if all are miserable, all will believe themselves happy, because the government will tell them that they are so.” - 61


Part 6 will examine the application of scientific technique to the reproduction of human beings including the separate breeding techniques to be applied to the “governing class” compared with the “working class”. Changes to Freedom and equality in the scientific society will be examined in part 7. Part 8 will examine changes to free trade and labour in the scientific society. Finally, Part 9 will describe two examples of artificially designed societies, including the creation of a new religion specifically for that new planned society.

[1] Bertrand Russell, The Scientific Outlook (1931). First Edition.

[2] Bertrand Russell, The Impact of Science on Society (1952). ISBN0-415-10906-X.

Related Articles

The Scientific Outlook Part 1: Scientific Technique and Power

The Scientific Outlook Part 2: The Rule of the Scientific Expert

The Scientific Outlook Part 3: Scientific Technique and Education

The Scientific Outlook Part 4: Propaganda: From the Class Room to Hollywood

The Scientific Outlook Part 6: Scientific Technique and Human Reproduction (August 3)

The Scientific Outlook Part 7: Freedom and Equality in a Scientific Society (August 10)

The Scientific Outlook Part 8: Free Trade and Labour in a Scientific Society (August 17)

The Scientific Outlook Part 9: Two Examples of Scientifically Created Artificial Societies: Japan and Soviet Russia (August 24)

Four Part Series on Bertrand Russell’s The Impact of Science on Society

More articles by Brent Jessop can be found at his site Knowledge Driven Revolution.com