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Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
Global Fusion - The New American Magazine - 4-27-09.pdf
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  • 1. Titanic Treasury Takeover • 1984 Revisited • The New GM: Government Made April 27, 2009 www.TheNewAmerican.com ThaT Freedom Shall NoT PeriSh $2.95 Global Fusion
  • 2. Mix or Match for Sp ecial Quant it Discou y nts Global Fusion As some longtime global-governance advocates are now openly admitting, the empowerment of international institutions such as the IMF, the WTO, and the World Bank is moving closer than ever before to creating a system of world government centered on the United Nations. (April 27, 2009, 48pp) TNA090427 Creating “Wealth” Shock & Awe Economics The Federal Reserve’s ability to create money out Obama’s so-named American Recovery and of thin air and to manipulate the value of the Reinvestment Act, along with a larger government dollar gives it ultimate control over the purse role in banks, is supposed to jump-start the strings of every American household. Find out American economy. But the plan will likely lead to exactly who is pulling your strings and how to the nationalization of industries and a long-term cut the ties that bind. (April 13, 2009, 48pp) economic depression. (March 16, 2009, 48pp) TNA090413 TNA090316 From Riches to Rags LOST: Law of the Sea Treaty Zimbabwe’s economy crashed as its inflation Though the United States stands to gain virtually rate skyrocketed from 12,000 percent in 2007 nothing by ratifying LOST — while the UN to an immeasurable figure in 2008. Discover would gain legal control over every aspect of our the similarities between our nation’s situation country’s decision-making regarding the seas and Zimbabwe’s, and find out what lessons — the U.S. Senate still looks to ratify the treaty. America must learn if it is to avoid the same (March 2, 2009, 48pp) TNA090302 fate. (March 30, 2009, 48pp) TNA090330 ✁ QuAnTITy TITlE/DESCrIpTIon ToTAl prICE Name ______________________________________________________________ Global Fusion Creating “Wealth” Mix or Match Address ____________________________________________________________ ❏ 1 copy $2.95 Shock & Awe Economics ❏ 10 copies $12.50 City _____________________________ State __________ Zip ________________ ❏ 25 copies $22.50 From Riches to Rags 100+ copies* Phone ____________________________ E-mail ______________________________ LOST: Law of the Sea Treaty EnTER Mix OR MATCh QuAnTiTiES AnD SubTOTAL ❑ Check ❑ ViSA ❑ Discover 000 0000 000 000 0000 0000 0000 0000 0000 ❑ Money Order ❑ MasterCard ❑ American Express VISA/MC/Discover Three Digit V-Code American Express Four Digit V-Code SUBTOTAL Wi RESiDEnTS ADD 5% SALES TAx ShiPPinG (SEE ChART bELOW) TOTAL Make checks payable to: ShopJbS ___ ___ ___ ___ ___ ___ ___ # _________________________________________ Exp. Date ________________ For shipments outside the U.S., please call for rates. Signature ___________________________________________________________ Standard: 4-14 Order Subtotal Standard Shipping Rush Shipping business days. MAiL COMPLETED FORM TO: $0-10.99 $4.95 $9.95 Rush: 3-7 business ShopJBS • P.O. BOX 8040 $11.00-19.99 $7.75 $12.75 days, no P.O. boxes, APPLETON, WI 54912 $20.00-49.99 $9.95 $14.95 hi/AK add $10.00 Order Online: www.shopjbs.org 1-800-342-6491 *Buy case lots of 100 at a special rate of $75.00. See case-lot shipping rates on card tab between pages 38 and 39. Credit-card orders call toll-free now! 090427
  • 3. I S A I A H 4 0 : 3 1 Retire Safe, Early and Happy... © © W. Neil Gallagher, Ph.D., 1989 All Rights Reserved The Gallagher Financial Group is your personal partner. Every strategy, every portfolio is tailor-made for you, the individual client. Dr. Gallagher is a lifetime John Birch Society member and has helped Americans coast to coast. • Lifetime Income • Legacy Planning • Long Term Care Issues • Tax Protected Strategies “We loved your presentation to our ... and Much Much More company and we want you back!” Zig Ziglar For more information on The Gallagher Group, visit DocGallagher.com or call (800) 434-4362. Call for a free copy of : “Why America is New, Better & Different.” Principal offices in Dallas/Fort Worth.
  • 4. 10 Vol. 25, No. 9 April 27, 2009 Cover Story GLOBALIzATION 10 Global Fusion Design by Joseph W. Kelly by William F. Jasper — The goal of the G20 is to transform the IMF into a global Federal Reserve, moving us closer than ever to the creation of a world government under the United Nations. FeatureS 17 Photo by Michael Barrett Austin EcONOmy 17 Titanic Treasury Takeover by Charles Scaliger — The Treasury Department’s “framework for regulatory reform” is actually a massive federal power grab. 20 The New Gm: Government made 23 by Charles Scaliger — Socialist Sweden refused to bail out its pivotal automaker Saab, yet our government jumps at the chance to own GM. 20 INTErVIEW 23 The Burden of Empire Interview of AntiWar.com’s Eric Garris by Thomas R. Eddlem cuLTurE 27 1984 revisited by James Perloff — Orwell’s 1984 is proving to be an ever more frighteningly accurate depiction of the world we live in. AP Images HISTOry — PAST ANd PErSPEcTIVE 33 Kinsey: deviancy Is the New Normal by Selwyn Duke — The Kinsey Syndrome, a DVD documentary 27 about the “Father of the Sexual Revolution” and his research, examines Kinsey’s methods, his supporters, and his legacy of lust. THE LAST WOrd 44 Obama Wants “Stronger, Global regime” AP Images by Gary Benoit 33 DepartmentS 5 Letters to the Editor 31 The Goodness of America 6 Inside Track 40 Exercising the right Newscom 9 QuickQuotes 41 correction, Please! cOVEr Design by Joseph W. Kelly
  • 5. See Dean Sellers Ford for your new Freedom Machine 2600 Maple Road Troy, Michigan (248) 643-7500 www.deansellersford.com
  • 6. LETTERS TO THE EDITOR Publisher John F. McManus Editor Bias Behind public is to be able to distinguish between Gary Benoit capitalism and socialism. Under capital- Senior Editor Valkyrie the movie ism, people and companies make money by William F. Jasper Selwyn Duke writes once again with great providing better goods or services to their proficiency and clarity on the subjects customers. This is the essence of the free Associate Editor Kurt Williamsen he covers, in this case the real Claus von market. Government lobbying is only to Stauffenberg and his portrayal in the cur- protect against unjust laws or unreasonable Contributors rent film Valkyrie (“Valkyrie: The Real von taxation — never to plunder the taxpayer or Dennis J. Behreandt Christopher S. Bentley Stauffenberg,” March 2 issue). But his re- oppress the competition. Under socialism, Steven J. DuBord view of the film comes up short in an im- with its high government involvement in the Selwyn Duke portant way. private sector, company success is dependent Jodie Gilmore The German colonel who gave his life to on its success in obtaining government fund- Gregory A. Hession, J.D. Ed Hiserodt rescue his fatherland is portrayed by Duke ing or favor. The company no longer needs William P. Hoar as a Catholic patriot whose faith impelled to run itself with sound principles, only to R. Cort Kirkwood him to take action against Hitler, and notes curry favor with the politicians and govern- Warren Mass Llewellyn H. Rockwell, Jr. that this motivation is missing from Tom ment officials. Naturally, when the company Alan Scholl Cruise’s role as von Stauffenberg. Indeed, officials are successful at this they deserve Ann Shibler the colonel is portrayed as nothing but a a bonus. Liana Stanley killing machine with no attempt made by The problem is not the bonuses — it is Michael E. Telzrow Joe Wolverton II, J.D. the producer or director to morally justify government intrusion into the market place! the assassination plan. All of this is unconstitutional according to Editorial Assistant To the producer and/or director of Val­ the 10th Amendment to the U.S. Constitu- Denise L. Behreandt kyrie, von Stauffenberg’s only redeeming tion. In order to enjoy a prosperous tomor- Art Director quality was his attempt to kill Hitler; nothing row and preserve our free and independent Joseph W. Kelly else matters. So any attempt by the audience America, we must elect leaders who will Desktop Publishing Specialist to identify with the hero and his honorable honor their oath to support and defend our Steven J. DuBord background is either totally ignored or bare- Constitution. Research ly mentioned. This is not about the film’s AlbeRt J. segAllA Brian T. Farmer managers appealing to a secular audience, Sent via e-mail Bonnie M. Gillis as Duke pondered; it’s about the biases and Wayne Olson aversions of the film’s controllers. Marketing Kenneth Reynolds Vote Them Out Larry Greenley Bronx, New York I want to thank the new AmeRicAn for the Public Relations information that is presented in your maga- Bill Hahn zine. For the first time, I understand about Advertising/Circulation The cockroach Theory the politics of America and why I always knew that the GOP looked so much like the Julie DuFrane and a Silver Lining Democratic Party — but at times worse. Your The present fuss about the government- magazine gave me that understanding. There approved company bonuses of the bailout isn’t much we can do but vote, and try to vote company officials and the campaign dona- these people out of office. tions to the politicians reminds me of the Alice PReston Printed in the U.S.A. • ISSN 0885-6540 cockroach theory: “Politicians and bureau- Portland, Oregon P.O. Box 8040 • Appleton, WI 54912 920-749-3784 • 920-749-3785 (fax) crats in some ways resemble cockroaches www.thenewamerican.com — it is not what they steal and carry off that Send your letters to: the new AmeRicAn, P.O. editorial@thenewamerican.com hurts so much — it is what they fall into and Box 8040, Appleton, WI 54912. Or e-mail: Rates are $39 per year (Hawaii and Canada, mess up!” editorial@thenewamerican.com. Due to vol- add $9; foreign, add $27) or $22 for six months (Hawaii and Canada, add $4.50; foreign, add This mess may have a silver lining if the ume received, not all letters can be answered. $13.50). Copyright ©2009 by American Opin- lesson learned by the Letters may be edited for space and clarity. ion Publishing, Inc. Periodicals postage paid at Appleton, WI and additional mailing offices. Post- master: Send any address changes to The New AmericAN, P.O. Box 8040, Appleton, WI 54912. EXTrA cOPIES AVAILABLE The New AmericAN is pub- lished biweekly by Ameri- ➧ Additional copies of this issue of the new AmeRicAn are can Opinion Publishing available at quantity-discount prices. To place your order, visit Inc., a wholly owned subsidiary of The John Birch Society. www.shopjbs.org or see the card between pages 38-39. www.TheNewAmerican.com 5
  • 7. Inside Track Major Media Sensationalize Mass Shooting Sprees The mainstream media have sensationalized recent sprees of mass with guns, according to the anti-gun lobby, and so therefore only shootings — from Jiverly Wong’s murder of 13 (plus killing him- the government should have guns. But how trustworthy is the self) in a Binghamton, New York, language center, to the shoot- government? One need only “Google” some far less-publicized ing of three police officers in Pittsburgh, attempted murder charges brought re- Pennsylvania, to the murder of eight by cently against a Baltimore Police offi- another gunman in a Carthage, North Car- cer, an Oakland area BART police of- olina, nursing home just weeks earlier. ficer, and a U.S. soldier in Iraq to find And the gun-grabbing lobby, which that people who work for the govern- garners plenty of publicity, has a pre- ment also “snap.” A government badge dictable “solution” to the problem. Paul is no guarantee of moral purity. Helmke, president of the Brady Cam- Meanwhile, nobody’s saying that paign to Prevent Gun Violence, opined: police save people from mad shooters. “It is time for leaders in Washington to At the Binghamton shooting spree, drop empty platitudes after each horrific police did not enter the building until shooting, and instead do what they’re more than 40 minutes after the first paid to do: show backbone, and enact 911 call. “Nobody could have been reasonable laws to keep dangerous saved if the police walked in the door weapons out of the hands of dangerous that first minute,” Broome County people.” District Attorney Gerald Mollen Binghamton, Who are those “dangerous people” he’s New York noted. However, if one or more of the talking about? He’s talking about you. victims had been armed, the blood- Law-abiding citizens cannot be trusted shed might have been minimized. AP Images Is the United States Really to Blame for Gun Crimes in Mexico? An often-repeated allegation is that 90 percent of the guns used that statistic was “clarified” by an ATF spokeswoman, who told in crimes in Mexico come from the United States — a shocking Fox News that “over 90 percent of the traced firearms originate statistic employed in the call for greater gun control north of our from the U.S.” (Emphasis added.) border with Mexico. However, according to a recent Fox News ATF Special Agent William Newell reports that Mexico sub- report, the percentage is much smaller than that. mitted 11,000 guns to the United States for tracing in 2007-2008. Why such a disparity in the numbers? The higher figure appar- Of that number, 5,114 guns were traced here. During the same pe- ently came from ATF Assistant Director William Hoover, who in riod, the Mexican government recovered 29,000 guns, according congressional testimony said: “There is more than enough evi- to the Mexican attorney general’s office. That means that most of dence to indicate that over 90 percent of the firearms that have the guns recovered were never submitted for tracing to the United either been recovered in, or interdicted in transport to Mexico, States and that those guns that were traced here represent only originated from various sources within the United States.” But about 17 percent of the total. Obama Wants Turkey to Join the European Union During his European tour, President Barack Obama made clear that he wants the EU to welcome Turkey into its union. “The United States and Europe must approach Muslims as our friends, neighbors and partners in fighting injustice, intolerance and violence,” he said before departing Prague for Ankara. “Moving forward towards Turkish membership in the EU would be an important signal of your commitment to this agenda and ensure that we continue to anchor Turkey firmly in Europe.” EU membership for Turkey would put the Islamization of Europe into hyper-drive. The White House photo EU permits its “citizens” to travel on EU passports and to work or live in any country they choose. Turkey’s population of 77 million is 99 percent Muslim. Given that Islam is already sweeping over Europe, with its adherents killing and terrorizing Europeans across the conti- nent, as well as demanding speech codes that have muzzled politicians, unfettered access to Obama with foreign ministers in Istanbul, Turkey Europe’s major cities for Turkish Muslims would be catastrophic. 6 THE NEW AMERICAN • ApRIl 27, 2009
  • 8. Vermont Legalizes Same-sex “marriage” by Legislative Action Vermont became the first state to legalize same-sex “marriage” by fense of this law as opposed to condemnation of homosexual legislative action, when on April 7 the state legislature overrode unions as immoral. “I believe our civil-union law serves Vermont Gov. Jim Douglas’ veto of the day before. A two-thirds majority well,” he said. Ironically, Vermont’s civil-union law, which Doug- vote was required to override the veto, and the override succeeded las supported, served as a steppingstone to Vermont’s same-sex by a vote of 23-5 in the state Senate and 100-49 in the House. “marriage” law, which he opposed. The lopsided votes on behalf of a life-style that was almost uni- In addition to Vermont, same-sex “marriage” has been legal- versally regarded as a perversion just a ized in three other states by judicial couple of generations ago shows how decisions: Massachusetts, Connecticut, successful the homosexual lobby has and Iowa. The latter action, by the Iowa been in transforming the cultural face Supreme Court, occurred on April 3, of America, at least in liberal New Eng- just four days before the Vermont leg- land. Homosexuality was classified as islature overrode the governor’s veto. a disorder by the American Psychiatric The California Supreme Court had also Association, for instance, until Decem- legalized same-sex marriage, but the ber 1973. court decision was negated when Cali- Vermont already had a civil-union Gov. Jim fornia voters amended the state Con- AP Images law, and Douglas’ opposition to same- Douglas stitution to prohibit same-sex message sex marriage was predicated on a de- through a ballot proposition. Fedgov Gives more H-1B Visas as u.S. Tech Worker Layoffs climb The U.S. Citizenship and Immigration Services (USCIS) an- The 85,000 H-1B visas about equal the number of domestic tech nounced on April 8 that it has received enough H-1B applica- workers laid off recently. MarketWatch.com reported on April 6 tions to meet the congressionally mandated cap of 85,000 H-1B that “high-tech companies announced job cuts totaling 84,217 in visas for fiscal year 2009. The H-1B visas are given to foreign the first quarter,” the steepest reduction since the fourth-quarter workers in “specialty occupations” (science, engineering, law, lay-offs of 2002. “The latest decline follows 66,312 reported lay- medicine, computer programming, etc.) where U.S. employers offs in the 2008 fourth [quarter],” the MarketWatch report con- have filed petitions claiming there are not qualified U.S. appli- tinued, noting job cuts “have risen five straight quarters.” That, cants to fill the jobs. The total current 85,000 includes an annual of course, is but part of the job-loss picture; nearly 10 times that 65,000 “cap” and an additional 20,000 exemptions for applicants number of workers were laid off, in all occupations, during the with advanced degrees. If precedent holds, other exemptions will month of March. The U.S. economy lost 663,000 jobs in March, add tens of thousands more; in 2008 the number of H-1B visas, and the unemployment rate shot up to a 26-year high of 8.5 per- including exemptions, totaled about 122,000. cent, according to the Bureau of Labor Statistics. Obama Administration Plans to Push for Global-warming Accord Todd Stern, the Obama administration’s special envoy for climate Denmark, meeting in December. If change, told representatives of 175 nations in Bonn, Germany, all goes according to plan, this con- on March 29, that global warming “requires a global response” fab will unveil a new global-warming and that rapidly developing economies like China “must join to- treaty replacing Kyoto that would gether” with industrialized nations to solve the problem. have a devastating effect on our indus- “We are very glad to be back. We want to make up for lost trial society if implemented. And the time, and we are seized with the urgency of the task before us,” Obama administration will attempt to Stern told the 2,600 delegates present for the UN negotiations. get the treaty ratified by the Senate AP reported that the delegates applauded Stern’s remarks loudly despite our recessionary times. and clapped again when Stern said the United States recognized Yet the evidence continues to State Department photo its “unique responsibility … as the largest historic emitter of mount that there is no global-warm- greenhouse gases,” which he suggested has created a problem ing threat. For information about the Todd Stern threatening the entire world. evidence, see “Whatever Happened The two-week series of talks in Bonn, which concluded on to Global Warming” in our February April 8, were a steppingstone for the upcoming Copenhagen, 16, 2009 issue. www.TheNewAmerican.com 7
  • 9. Inside Track Kennedy’s Serve America Act Passes congress The New York Times calls the Edward M. Kennedy Serve Amer- in the bill prevents feder- ica Act the “largest expansion of government-sponsored service al taxpayer dollars from programs since President John F. Kennedy first called for the being used to support creation of a national community service corps in 1963.” As any- state and local programs thing that’s created under the Kennedy name, the bill involves that force children to per- ever-bigger government. It authorizes what President Obama form ‘community service’ ominously calls an “army of 250,000 Corps members” who will as a condition of graduat- serve in paid positions of national service, more than triple the ing from high school. Be- 75,000 now in AmeriCorps. cause an increasing num- AP Images Edward Paid volunteers? Only the federal government could come up ber of schools across the Kennedy with such a concept. The Congressional Budget Office estimates nation are forcing chil- that the bill would cost $1.2 billion in 2010 and significantly dren to provide ‘service’ more in subsequent years. as a condition of graduating, it is quite likely that the funds au- This bill is not about volunteerism, as Congressman Ron Paul thorized by this bill will be used to support mandatory service.” (R-Texas) explained on the House floor March 18: “Participation As we go to press, the legislation had cleared Congress but in the program is not voluntary for the taxpayers. Second, nothing awaited Obama’s signature. GOP Budget Alternative Wasn’t much of an Alternative On April 1, April Fool’s Day, prior to House and Senate passage would give these huge deficits the appearance of being “conser- of similar versions of the Democrat-backed budget plan two days vative” is that the deficits in the Obama budget would be even later, Republicans unveiled their alternative budget which they larger. called, “Fiscal Responsibility: Republicans on the Budget,” The Republican plan would increase the size of the federal But how “responsi- government by nearly four percent per year: “Total mandatory ble” was the GOP alter- spending [about three-fourths of total federal spending] increases AP Images native? Well, it called for by an average of 3.9 percent per year for the next 10 years. This $500 billion-plus annual is slightly slower growth than projected in the Congressional deficits through 2019. Budget Office baseline and the Obama/Democratic budget.” If Every annual deficit in the best that the Republican Party can do is claim — using their the Republican budget own words — “slightly slower growth” than Obama’s spending would be larger than any proposals, what’s to be said of Republican “principles”? Paul Ryan deficit in the entire his- Republicans clearly are a party of big government. They want all talks about an alternative tory of the nation before the government the Obama administration would bring to Ameri- Republican 2008. The only thing that ca, except that they would bring this about at a slower rate. budget plan missouri militia report continues to cause Political Waves Public outcry over a highly controversial political profiling report play Constitutional Party, Campaign for Liberty, or Libertarian by a branch of the Missouri State Highway Patrol continues to material.” reverberate through the Show Me State. The report, entitled “The On March 29, Campaign for Liberty staff member Steve Modern Militia Movement,” lists a number of violent activities Bierfeldt was stopped and subjected to harassing search and attributed to “right-wing” militia groups and then posits “mind- questioning by law enforcement at the St. Louis airport after the set” links between them and legitimate, law-abiding groups, po- conclusion of the group’s three-day conference, at which Rep. litical parties and political candidates. Ron Paul was the keynote speaker. The intimidation session was The report, which was disseminated to law enforcement, recorded on Bierfeldt’s iPhone and has subsequently become an specifically names Congressman Ron Paul (R-Texas), who ran Internet sensation. for president in the 2008 Republican Party primaries, and Bob Van Godsey, the director of the Missouri Information Analysis Barr and Chuck Baldwin, presidential candidates, respectively, Center, the federal-state-local “fusion center” that produced the for the Libertarian and Constitution Parties. The report states: report, was replaced on April 6. Missouri State Rep. Jim Guest “Militia members most commonly associate with 3rd party po- informed the new AmeRicAn on April 8 that he will be holding litical groups. It is not uncommon for militia members to dis- hearings into the matter after the Easter recess. n 8 THE NEW AMERICAN • ApRIl 27, 2009
  • 10. QuickQuotes The Get US Out! of the UN Partisans Are deemed correct “Those people who have been yelling, ‘Oh, the UN is going to take over.’ Now they’re correct.” After pointing out that the G­20 participants plan to give the IMF power to coordinate international regulation of business and industry, political commen­ tator Dick Morris is no longer willing to discount those who have long called for U.S. withdrawal from the world body. Talk-show Host Says conspiracy Believers on Target “Geithner said he’d be open to the idea of a global currency. Those conspiracy people had suggested this for years. They’re not wrong.” After years of consistently discounting the very thought of a world conspiracy, AP Images Sean nationally syndicated talkshow host Sean Hannity has suddenly become a hannity believer himself. Buchanan Leans Toward Legalizing Narcotics “There are two sure ways to end this [drug] war swiftly: Mao Zedong’s communists killed users and sup- pliers alike, as social parasites. Milton Friedman’s way is to decriminalize drugs and call off the war.” In his column, Patrick Buchanan presents his case for calling off our nation’s war against drugs by decriminalizing their use and, in the process, destroying the Mexican cartels that are ruling sizable portions of their nation. Maud Photographer: Johanna Jansson Sweden refuses Government Help for Ailing Saab Olofsson “The Swedish state is not prepared to own car factories.” Facing a desperate financial crisis, the Saab Company hoped to re­ ceive government help. But, according to enterprise minister Maud Olofsson, Sweden’s leaders will not bail out failing companies as it has often done in the past. Wonder Why Gm and chrysler Are Hurting? “After its annual testing of vehicles, Consumer Reports recommended 100 percent of Subaru vehicles, 95 percent of Hondas, 89 percent of Toyotas, and 70 percent of Fords. Only 17 percent of GM cars and zero percent of Chryslers were recommended.” Reported in the Boston Globe by columnist Derrick Jackson. Presidential Signing Statements Will continue “They’re going to do the same thing, whenever they feel like it.” While pointing out that candidate Obama forcefully spoke White House photo against his predecessor’s practice of altering and even nullify­ ing laws with signing statements, former Bush administration press spokesman Ari Fleischer noted that the highly dubious Ari Fleischer tactic has already been employed by the new chief executive. Taliban chief Threatens Attack on u.S. “Soon we will launch an attack in Washington that will amaze everyone in the world.” Because he has no record of ever having attacked a target outside Asia, and because he has made similar unfulfilled claims in the past, the threat issued by Baitullah Mehsud has not been taken seriously by U.S. authorities. renowned Physicist Scorches Global-warming champions “Al Gore is just an opportunist. The person who is really responsible for this Photographer: Betsy Devine overestimate of global warming is Jim Hansen. He consistently exaggerates all the dangers.” Noted Princeton University physicist Freeman Dyson accuses both men of relying too heavily on unreliable computer­generated climate models and blames both for “lousy science.” n Freeman — comPiled by John F. mcmAnus Dyson www.TheNewAmerican.com 9
  • 11. Globalization Global Fusion the goal of the G20 is to transform the iMF into a global Federal Reserve, moving us closer than ever to the creation of a world government under the United nations. by William F. Jasper ing them about a new smart phone, the agenda of the alpha-numeric gathering, trendiest fashion footwear, or the latest but virtually everyone above room tem- S uppose we had conducted a national fat-burner diet drink. perature had at least heard of it, and more opinion poll a few months ago to By the time President Obama and other than a few were getting an inkling that its canvass Americans on their opin- world leaders headed off to London for the outcome might have a significant impact ions of the G20. Most respondents, it is April 2 economic summit of the G20 na- on their jobs, businesses, pocketbooks, probably safe to say, would not have had tions, most Americans may have been still pensions, bank accounts, and stock port- the slightest idea whether you were ask- more than a bit fuzzy about the aims and folios. In fact, the outcome may be more 10 THE NEW AMERICAN • ApRIl 27, 2009
  • 12. G20 leaders pose for a group photo at the London Summit, April 2, 2009. AP Images far-reaching and significant than that, im- to describe the transfer of powers from first decision, which can be made at the pacting individuals and nations — eco- nation-states to institutions that are part of G-20 Summit, will be to shorten this pe- nomically, politically, and socially — far the United Nations system. That includes, riod from 2013 to 2011.” beyond what is generally surmised. of course, the IMF and World Bank (and “A new world order is emerging,” de- regional development banks), which were clared British Prime Minister Gordon G20 Agenda established as financial sister institutions Brown at the conclusion of the summit. Foremost on the G20 agenda is what glo- to the UN by many of the same architects The signals being sent by Brown, Sarkozy, balist movers and shakers refer to as “global who designed the UN. It includes also the Strauss-Kahn, Geithner, German Chan- financial architecture reform,” code words World Trade Organization (WTO), another cellor Angela Merkel, and others should for transforming the International Mon- UN institution that is expected to receive be setting off high-decibel alarm bells. etary Fund (IMF) into, virtually, a global enhanced powers to enforce the G20’s an- We are witnessing the demolition of our Federal Reserve System, with vast new nounced commitment to “fight all forms of constitutional system and the piecemeal monetary and regulatory powers — and protectionism and maintain open trade.” replacement of it with world government. huge new infusions of cash to be provided In fact, French President Nicolas Sar- Over the coming months, the architects principally, as usual, by the citizens of the kozy, a closet socialist who is pushing hard of this new global system intend to wring United States, Japan, and Europe. In addi- to scuttle what little sovereignty remains every opportunity possible out of the cur- tion to pledging $1.1 trillion to the IMF, for nation-states in the European Union, rent economic crisis to bulldoze through the summiteers are proposing that the IMF threatened to “walk away” from the Lon- our constitutional checks and balances that assume a central role in the monitoring and don summit if concrete global governance stand in the way of empowering the IMF, regulation of global financial markets, and “deliverables” on financial regulation are the WTO, and the United Nations. greatly expand Communist China’s influ- not met. ence in the IMF structure. In the run-up to And there’s much more to the summit, there was even a stunning pro- come. The London summit, it is not only the “alarmists” who are now posal made by China, Russia, a UN panel, says Dominique Strauss- and others — and tacitly endorsed by U.S. Kahn, the French economist noting the obvious; some longtime world- Treasury Secretary Timothy Geithner — who is the IMF’s managing government advocates are coming out of to replace the dollar as the world’s reserve director, is but the launch- currency with the IMF’s Special Drawing pad for an ongoing process. the closet and verbally confirming what is Rights (SDRs). “This reform is a dynamic re- empirically and logically apparent: these This “supersizing” of the IMF, as it form, meaning that it has to current “reforms” are pushing us ever has become popularly known in globalist be completed over time with circles, falls under the rubric of “global several rounds,” he said on closer to actual world government. governance stimulus,” a term being used the eve of the summit. “The www.TheNewAmerican.com 11
  • 13. Globalization pean Union has already set up opts for soothing language,” he notes, as a continental government for for example, using “ ‘global governance’ The Council on Foreign Relations has 27 countries, which could be a rather than world government.” been the principal fount in America model. The EU has a supreme But some globalists, especially in Eu- court, a currency, thousands of rope, speak more boldly. Rachman notes: through which proposals to empower pages of law, a large civil ser- the un and its affiliates have flowed vice and the ability to deploy Jacques Attali, an adviser to Presi- into academia, the media, and official military force. dent Nicolas Sarkozy of France, argues that: “Global governance is government circles since the un was “So could the European model go just a euphemism for global govern- created more than six decades ago. global?” Rachman asks. He of- ment.” As far as he is concerned, fers three reasons why he thinks some form of global government it might: “global warming, a cannot come too soon. Mr. Attali Is the voicing of such concerns being global financial crisis and a ‘global war believes that the “core of the inter- unnecessarily “alarmist”? Of course it is, on terror.’” national financial crisis is that we say the talking heads dispensing the con- “The financial crisis and climate have global financial markets and ventional wisdom in the major media. change,” Rachman avers, “are pushing no global rule of law.” national governments towards global solu- coming Out of the closet tions, even in countries such as China and “So, it seems, everything is in place,” says However, it is not only the “alarmists” the US that are traditionally fierce guard- Rachman. “For the first time since homo who are now noting the obvious; some ians of national sovereignty.” sapiens began to doodle on cave walls, longtime world-government advocates Rachman approvingly quotes from there is an argument, an opportunity and are coming out of the closet and verbally a recent report of a globalist think tank, a means to make serious steps towards a confirming what is empirically and logi- the Managing Global Insecurity project, world government.” cally apparent: these current “reforms” calling for a legally binding UN climate- But, to his disappointment, there is still are pushing us ever closer to actual world change agreement and the creation of a stubborn resistance to this vision and “any government. 50,000-strong UN peacekeeping force. But push for ‘global governance’ in the here One of the semi-uncloseted one- he observes that the MGI report tellingly and now will be a painful, slow process.” worlders is Gideon Rachman, a leading avoids using words that might “get people Rachman, the ardent global govern- financial opinionator for the very influ- reaching for their rifles in America’s talk- ment proponent, then makes an important ential Financial Times. In an important radio heartland.” “Aware of the political admission against interest. He acknowl- op-ed last December 8, Rachman blurted sensitivity of its ideas, the MGI report edges: his undisguised enthusiasm for the developing contours of world government appear- ing from the current so-called reform process. In his column entitled “And now for a world government,” the Timesman expresses excitement that “for the first time in my life, I think the formation of some sort of world government is plausible.” And not only plausible, but, as far as Rachman is concerned, very desirable. Rachman describes what he envisions: $1.1 trillion ImF boost: iMF Managing Director Dominique A “world government” Strauss-Kahn says the new would involve much more “supersizing” of the iMF is part of a “dynamic reform” than co-operation between process that will require nations. It would be an more rounds. AP Images entity with state-like char- acteristics, backed by a body of laws. The Euro- 12 THE NEW AMERICAN • ApRIl 27, 2009
  • 14. AP Images Even in the EU — the heart- land of law-based international government — the idea remains unpopular. The EU has suffered a series of humiliating defeats in referendums, when plans for “ever closer union” have been referred to the voters. In gen- eral, the Union has progressed fastest when far-reaching deals have been agreed by techno- crats and politicians — and then pushed through without direct reference to the voters. International governance tends to be effective, only when it is anti-democratic. This, of course, confirms yet again two of the main objections by crit- ics of the processes employed to “A new world order is emerging,” says british Prime Minister Gordon brown, the London G20 promote “global governance,” Summit host, seen here at the summit with President barack Obama. “harmonization,” “shared sover- eignty,” “interdependence,” and other code words for schemes that subvert as Bundesbank President Karl Otto Pohl, said exactly what he had said. We had national sovereignty and build global gov- German Chancellor Helmut Kohl, British all heard it. It was beyond doubt his ernment. The first is that globalists peren- Labour politician Peter Hain, and Europe- informed position. He was giving us nially mislead and deceive to obtain their an Commission President Jacques Delors. the final destination of the European objectives; the second is that despite their Forsyth, an outspoken opponent of the Union project. proclaimed commitments to transparency, EU threat to national sovereignty, said in democracy, and rule of law, the global- a speech to the anti-EU Bruges Group: The Financial Times never breathed a word government adherents regularly ignore of this meeting or the words of the German and violate all of these principles. I sat once in a meeting … at the Fi­ central banker to its readers. No indeed, Unfortunately, while revealing admis- nancial Times editorial offices in because the Financial Times is a very im- sions (and boasts) by other globalists are Blackfriars to listen to Mr. Pohl. He portant part of what Forsyth referred to as cropping up, most of Rachman’s and At- was a former president of the Bundes- “a very powerful cabal in our country that tali’s one-world colleagues are more cir- bank and he had been eased out of is quite literally dedicated, fanatically, to a cumspect. When the inquiring journalist that presidency by Helmut Kohl spe- futuristic dream.” or alarmed citizen points to the obvious cifically to work with Jacques Delors The Forsyth saga related above is es- disturbing destination where this process is in the creation of the new currency, pecially apropos not only because many taking us, he is given the Wizard of Oz treat- the Euro. And he was, I thought, ex- of the same deceptive methods are being ment: “Don’t pay any attention to that man tremely forthcoming. He said, “It is used to supersize the IMF, but because behind the curtain.” In other words, don’t my duty to tell you my English friends many of the same key individuals and or- believe your eyes, ears, or common sense. … that you will have to abandon the ganizations involved in the euro cabal are British nation state because the fu- now pushing the IMF/SDR scheme. The Eu Example ture has no provision for the nation Take, for instance, Robert Mundell, the We have a highly apropos example of this state within it.” There was a stunned Nobel Prize-winning Canadian economist as it relates to the skullduggery employed silence. And then in the course of the who played a major role in setting up and to force the euro currency and the Europe- remarks that followed almost imme- promoting the euro. He is also a central an Central Bank on the people of Europe diately afterwards, Peter Hain stood figure behind the proposed IMF currency, and the current push to do the same on a up and told us quite bluntly that we having been a leading advocate of the idea global scale with the IMF. had not heard what we thought we for many years. In a 1990 essay, later re- Frederick Forsyth, the bestselling Brit- had heard. It hadn’t been said. And a printed in the Wall Street Journal, Mundell ish author, relates a secret meeting to rather bemused German former pres- wrote: “We have a better opportunity to which he was privy some years ago in- ident of the Bundesbank sat there as create a world central bank with a stable volving Rachman’s employer, the Finan­ if someone had accused him of being international currency than at any previous cial Times, and EU heavyweights such slightly deranged. He had of course time in history.” www.TheNewAmerican.com 13
  • 15. Globalization Shadows of power: best- place the dollar with a new global fiat cur- selling author Frederick rency he called the “bancor.” Zhou Xiao- Forsyth attended and chuan’s proposal, posted on the website of exposed a secret meeting the People’s Bank of China, cites Keynes of “a very powerful cabal” as his inspiration: of globalist insiders. Back in the 1940s, Keynes had already proposed to introduce an international currency unit named “Bancor,” based on the value of 30 representative com- modities. Unfortunately, the proposal was not accepted.... The creation of an international currency unit, based on the Keynesian proposal, is a bold initiative that requires extraordinary political vision and courage. Nexus of Globalism It is not surprising that Geithner’s com- ments came at an event of the Council on Foreign Relations. Geithner is a longtime AP Images member of the organization, and the CFR has been the principal fount through which proposals to empower the UN and its af- In the week prior to the London sum- on the table. I want to know which it filiates have flowed into academia, the mit, when Zhou Xiaochuan, the governor is. The American people deserve to media, and official government circles of Communist China’s central bank, and know.” since the UN was created more than six Nursultan Nazarbayev, the communist Asked today about a currency decades ago. dictator of Kazakhstan, both called for a proposal from China at a Council on In fact, CFR members in the Roosevelt global currency and a global central bank, Foreign Relations event, Secretary administration dominated both the 1944 Mundell was trotted out in the major media Geithner stated he was open to sup- Bretton Woods Conference that created to provide his stamp of approval. “It would porting it. Despite attempts to clarify the IMF/World Bank system and the par- be a very good idea if the G20 took that his remarks later in the day, the un- allel 1944 Dumbarton Oaks Conference idea up in London,” Mundell said. guarded initial response calls into that created the United Nations Charter. question his true intentions. The principal U.S. official in charge of u.S. Officials “Open to” ditching dollar the Bretton Woods Conference was Trea- But it is the American globalists, especial- A transcript and video of Geithner’s state- sury official Harry Dexter White, a CFR ly those serving as elected and appointed ment at the Council on Foreign Relations member (as well as a Soviet agent), who federal officials — not the Chinese, Cana- (CFR) are available on the organization’s worked closely with Keynes to craft a sys- dians, or Europeans — who should most website. Geithner says: “as I understand tem that would gradually transfer global concern American citizens. On March 25, his [Zhou Xiaochuan’s] proposal, it’s a financial control to the United Nations. U.S. Rep. Michele Bachmann (R-Minn.) proposal designed to increase the use of The most influential proposals for rightfully took Secretary Geithner to task the IMF’s special drawing rights. And empowering the UN and the IMF today for being deceptive about his true inten- we’re actually quite open to that sugges­ continue to flow from the CFR and its tions concerning China’s global currency tion. But you should think of it as rather subsidiary think tanks, which include proposal. Rep. Bachmann’s office issued a evolutionary, building on the current archi- the Greenberg Center for Geoeconomic release declaring: tectures … rather than moving us to global Studies, the International Institutions and monetary union.” (Emphasis added.) Global Governance Program, the David “Yesterday, during a Financial Servic- Secretary Geithner’s denials notwith- Rockefeller Studies Program, the Center es Committee hearing, I asked Secre- standing, Communist China’s proposals for Preventive Action, and the Center for tary Geithner if he would denounce for the new currency reserve are indeed Universal Education, as well as similar efforts to move towards a global cur- a scheme for “moving us to global mon- organizations that are dominated by CFR rency and he answered unequivocally etary union.” It is an attempt to move us members: the Peterson Institute for Inter- that he would,” said Bachmann. “And closer to the original vision of Lord John national Economics, the Brookings Insti- President Obama gave the nation the Maynard Keynes, the Fabian Socialist, ar- tution, the Carnegie Endowment for Inter- same assurances. But just a day later, chitect of the International Monetary Fund national Peace, the Ford and Rockefeller Secretary Geithner has left the option and World Bank. Keynes had hoped to re- Foundations, the Clinton Global Initiative, 14 THE NEW AMERICAN • ApRIl 27, 2009
  • 16. and the Carter Center — to name a few. is) highly venerated in CFR The CFR’s International Institutions and circles, advised fellow one- Global Governance Program (IIGG) calls worlders simply to lie to The late Admiral Chester Ward resigned for “re-conceptualizing ‘sovereignty’ in an their countrymen about from the CFR after 16 years, concluding age of globalization,” openly admires the their revolutionary plans. that the organization existed for the EU model for having “chosen to ‘pool’ “I believe that the monster their sovereignty in return for economic, of sovereignty is doomed subversive “purpose of promoting social and political benefits,” and speaks to perish by our sword,” disarmament and submergence of u.S. approvingly of “the evolution of new Toynbee confidently de- norms of state sovereignty” and an “emerg- clared in a 1931 speech sovereignty and national independence into ing doctrine of ‘contingent sovereignty.’ ” that was later published in an all-powerful one-world government.” This has been the central CFR theme for the RIIA’s journal. “[W]e nearly a century. When the group’s leading are at present working, dis- lights are not attacking outright the very creetly but with all our might,” he said, “to Obama’s Globalist Brain Trust concept of national sovereignty, they are wrest this mysterious political force called Globalist-without-equal Henry Kissinger usually attempting to define it into oblivi- sovereignty out of the clutches of the local (CFR) declared in recent interviews with on. National sovereignty is, of course, the national states of our world. And all the PBS and CNBC that there is “a need for a main obstacle to what they call “world time we are denying with our lips what new world order” to bring the world back order.” A 1944 CFR study lamented the we are doing with our hands, because to from “the abyss,” and said that President American public’s “sovereignty fetish.” impugn the sovereignty of the local na- Obama’s “task will be to develop an over- Walt W. Rostow (CFR), a big name in tional states of the world is still a heresy all strategy for America in this period, when the State Department and National Se- for which a statesman or a publicist can be really a ‘new world order’ can be created.” curity Council during the Kennedy and … ostracized and discredited.” (Emphasis President Obama is getting plenty of Johnson administrations, called in 1960 added.) help with that new world order “task” from for “an end to nationhood as it has been So, most globalists have adopted the the globalist brain trust he has appointed historically defined.” He also called for Toynbeean path of prevarication and as staff, cabinet, and advisers, including “the creation of a world order” which couching their world government aims these CFR members: George Mitchell, would include “world law and some form in less threatening terms such as “world Richard Holbrooke, Tim Geithner, Robert of world government.” order,” “global governance,” and “respon- Gates, Janet Napolitano, Susan Rice, Eric Ambassador Richard N. Gardner (CFR) sible sovereignty.” Shinseki, Ivo Daalder, Neal Wolin, Lael argued for patient gradu- alism in his famous 1974 AP Images article in the CFR journal Foreign Affairs entitled “The Hard Road to World Order.” Since attempts at “instant world government” had been foiled by America’s obsti- nate clinging to sovereignty, he conceded that “an end run around national sovereignty, eroding it piece by piece, will accomplish much more than the old-fashioned fron- tal assault.” Similar pronouncements by prominent globalists, both Republican and Demo- crat, could be multiplied a hundred fold. Most have fol- lowed the advice of historian Arnold Toynbee, an ardent globalist and member of the CFR’s British sister organi- zation, the Royal Institute for International Affairs (RIIA). reds and greens: Street demonstrations by communists (above) and environmental activists at the Toynbee, who was (and still London G20 summit help make the summit’s radical socialist proposals look modest by comparison. www.TheNewAmerican.com 15
  • 17. Globalization Strobe Talbott, Obama “states’ rights” sentiment which pre- adviser and president of the vents a gradual subordination of the brookings institution, longs Senate, and the position of the Su- for the day when “nationhood preme Court as final interpreter of the … will be obsolete; all constitutional separation of powers nations will recognize a — all these militate against the devel- single, global authority.” opment of responsible government. Hence it was not surprising that in the 1980s top leaders of the CFR headed up a front group, the Committee on the Con- stitutional System, to remove those checks and balances. Their principal playbook, Reforming American Government, infa- mously admitted their subversive designs. It declared: “Let us face reality. The fram- ers have simply been too shrewd for us. They have outwitted us. They designed AP Images separated institutions that cannot be uni- fied by mechanical linkages, frail bridges, tinkering. If we are to ‘turn the founders Brainard, Ashton Carter, and Michele A. Turning the Founders upside down upside down’ — to put together what they Flournoy. The list could go on and on. The facts support this grim assessment. put asunder — we must directly confront Brookings Institution President Strobe And hand in hand with the CFR’s abhor- the constitutional structure they erected.” Talbott (CFR), an Obama adviser, is a full- rence of national sovereignty is its animos- Turning the American founders upside blown one-worlder. In a 1992 essay for Time ity toward limited constitutional govern- down is precisely what the CFR-led glob- magazine entitled “The Birth of the Global ment. The CFR’s globalists at the IIGG alists are attempting to do in their current Nation,” Talbott rhapsodized over a future Program lament the United States’ resis- drives for “global governance.” This is very he saw materializing in which “nationhood tance to the ideals of global governance. evident in the push to transform the IMF. as we know it will be obsolete; all states They seem particularly annoyed that “the We are already saddled with the Federal will recognize a single, global authority.” separation of powers enshrined in the U.S. Reserve System, a dangerously arrogant In this regard, we see little change from Constitution, which gives Congress a criti- threat to our economy and our constitu- previous administrations running all the cal voice in the ratification of treaties and tional system. However, it is still possible, way back to the days of FDR and Truman. endorsement of global institutions, com- if enough Americans can be educated, mo- Washington Post ombudsman Richard plicates U.S. assumptions of new interna- tivated, and activated, to force Congress Harwood has described the CFR as “the tional obligations.” The Founders intended to curtail the Fed’s powers, or even (yes, nearest thing we have to a ruling estab- that the separation of powers would “com- please!) abolish this unconstitutional mon- lishment in the United States.” Writing of plicate” efforts to expand government strosity. The IMF is another matter. Con- the council’s top-heavy presence in the power, whether under legitimate or phony gress can (and should) cut off any further Clinton retinue, Harwood observed in the claims of “obligation.” U.S. participation in and contributions to October 30, 1993 issue of the Post that This IIGG complaint echoes a familiar the fund. If it does not and allows the IMF “they very definitely look like the people refrain in CFR literature since its earliest to be bumped up to the levels proposed by who, for more than half a century, have days. the “supersizers,” Congress soon will find managed our international affairs and our In 1928, the CFR’s first Survey of Amer­ that it has lost what little leverage it has military-industrial complex.” ican Foreign Relations openly attacked the had on the IMF’s conduct and policies. That unbroken trend continued through U.S. Constitution’s intricate checks and If the IMF is empowered with global the Bush retinue and into the new Obama balances as incompatible with “responsi- monetary and financial regulatory pow- retinue. This is especially disturbing if the ble government.” The CFR study charges ers, along with the ability to issue a global charges of the late Admiral Chester Ward that our Constitution’s most salutary and currency and bonds, it will no longer have have any merit. Admiral Ward resigned venerated features are actually defects: to ask its member states for funding. Nor from the CFR after being a member for 16 will the UN. The IMF will be able to pro- years, having come to the conclusion that The jealous control of the purse by vide the UN with the revenues it needs to the organization existed for the subversive Congress is a check which would become an actual world government, com- “purpose of promoting disarmament and inevitably curb an ambitious presi- pletely unbridled by any constitutional submergence of U.S. sovereignty and na- dent.... The comparative equality of constraints, accountable to no one but the tional independence into an all-powerful power of the two houses, rendering “very powerful cabal” (Forsyth’s words) one-world government.” each a check upon the other, the running the show. n 16 THE NEW AMERICAN • ApRIl 27, 2009
  • 18. EconoMy Titanic Treasury Takeover The Treasury Department’s “framework for regulatory reform” is actually a plan for the most massive federal power grab since the New Deal. by Charles Scaliger groundwork for an expansion of federal have been plugged, the freedom to make power the likes of which America has not financial transactions, large and small, I t’s official: the Obama administration seen since the New Deal. free of federal government oversight, will intends to nationalize the entire finan- “Over the past 18 months, we have faced be gone. cial sector. If there were any lingering the most severe global financial crisis in Nor will there be any refuge overseas, doubts as to the intentions of President Ba- generations,” Treasury Secretary Geithner if Obama and his like-minded associates rack Obama and Treasury Secretary Tim- told the House Financial Services Com- overseas — Britain’s Gordon Brown, for othy Geithner, they were dispelled by an mittee. “To address this will require com- example — have their way. “International announcement on March 26 detailing the prehensive reform. Not modest repairs at coordination” means that new U.S. finan- Treasury Department’s new “framework the margin, but new rules of the game.” cial regulations will be harmonized with for regulatory reform.” those of the EU and other major economic “Regulatory reform” is a favorite Belt- Nationalize the Entire Financial Sector powers, and brought under the authority way euphemism for bigger, more expen- True to Secretary Geithner’s words, the of an international organ, presumably the sive, and more intrusive government. The new Treasury plan contemplates “reform” IMF. new Treasury plan should be styled more in four general areas, to wit: “addressing At the April 2 meeting in Great Britain accurately “Blueprint for a massive new systemic risk,” “protecting consumers of the G20, the top action items included federal power grab,” because that’s pre- and investors,” “eliminating gaps in our new powers and reserves for the IMF and cisely what it is. Such power grabs are regulatory structure,” and “fostering inter- a global clampdown on tax havens, hedge usually accomplished under the camou- national coordination.” The plan has not funds, and bank secrecy — precisely the flage of crisis, when public emotions — yet been fully fleshed out, but such scraps kinds of things that Timothy Geithner and and the widespread sentiment that govern- of information that the Obama Treasury his counterparts overseas are demanding. ment should “do something” — are easily has seen fit to make public are evidence According to Britain’s Finance Secretary exploited. enough of the end that the Obama admin- Stephen Timms, “the era of banking se- And the Obama administration has been istration has in mind: effective nationaliza- crecy is over.” only too happy to take advantage of the tion of the entire financial sector. By the In point of fact, the era of financial se- turbulence, with dire warnings laying the time the “gaps in our regulatory structure” crecy of any kind will be over if the Trea- www.TheNewAmerican.com 17
  • 19. EconoMy credit default swaps and a confidential basis to appropriate over-the-counter deriva- federal regulators.... Finally, we will The Obama administration has in mind tives for the first time,” the apply robust eligibility requirements the effective nationalization of the entire Treasury proposal ex- and, where appropriate, standards of plained. The proposal went care; and will require that they meet financial sector. by the time the “gaps on in smugly dictatorial ca- recordkeeping and reporting require- in our regulatory structure” have been dences to describe the com- ments. [Emphasis added.] plugged, the freedom to make financial ing regime: It doesn’t take a Ph.D. in finance or an transactions, large and small, free of We will subject all expertise in the arcane of derivatives to federal government oversight, will be gone. dealers in OTC deriva- understand what is happening here. OTC tive markets to a strong derivatives, an innovative new financial regulatory and supervi­ sector in which transactions are private sury plan, or even a reasonable facsimile sory regime as systemically impor- and entirely voluntarily, are to be trans- thereof, is voted into law by Congress. tant firms.... We will force all stan- formed into yet another compliant arm of “Transparency” — another delicious dardized OTC derivative contracts FedGov-directed financial activity. Hence- Beltway euphemism, meaning total gov- to be cleared through appropriately forth the federal government will oversee ernment surveillance — will be the order designed central counterparties all such transactions and will determine, of the day, with few financial transactions (CCPs).... We will require that all in its allegedly superior wisdom, wheth- more complex than putting a quarter in a non-standardized derivatives con- er or not such voluntary transactions are gumball machine exempt from the Federal tracts report to trade repositories and permitted. Government’s all-seeing eye. be subject to robust standards for In addition, the Treasury proposal con- Just one of the four areas of contem- documentation and confirmation of templates strengthening the regulation of plated reform — addressing systemic trades; netting; collateral and margin money-market funds and setting up an risk — was described in any detail in the practices; and close-out practices.... FDIC-like guarantor of last resort — to be Treasury’s press release, but it was a fair Central counter-parties and trade re- paid for by those systemically-important indicator of things to come. The Treasury positories will be required to make firms coerced into accepting its coverage. intends to create a new regulatory body aggregate data on trading volumes All of this may seem unimportant to with responsibility for determining which and positions available to the public the man on the street, applicable only to firms are large or interconnected enough to and make individual counterparty the rarefied upper atmosphere of high fi- pose “systemic risk.” This body will have trade and position data available on nance. But it is the activities of the hedge the authority to decree which firms are “systemically impor- AP Images tant” and to exert controls over systems of payment and the disposition of derivatives, those pesky financial innovations de- vised in the first place to dilute systemic risk that government regulations had imposed on fi- nancial transactions like mort- gages. Firms deemed “systemi- cally important” will be subject to rigorous new regulatory re- quirements for capital reserves and credit risk management. All hedge funds larger than an asset threshold to be determined will be registered and subjected to detailed federal scrutiny. OTC (over-the-counter, or privately traded) derivatives will also be brought under Big Brother’s benevolent oversight. “In our proposed regulatory Everything must go: Economic corrections always claim large numbers of less-efficient businesses. Luxury goods, like the high-end clothing at this new York store, are particularly vulnerable as framework, the government chastened consumers save rather than spend their excess income. will regulate the markets for 18 THE NEW AMERICAN • ApRIl 27, 2009
  • 20. Out of his depth: Treasury Secretary Timothy Geithner testifies before the house Financial Services Committee. AP Images The best thing the Treasury Department could do for the economy is leave it alone. Geithner’s Treasury Department, however, intends to do just the opposite, imposing a welter of new controls on financial activities. fund and money-market fund managers, order of free market economic activity is funds,” which the Treasury now intends the stockbrokers, the currency traders, that it will bring about dramatic improve- to bring under the malignant umbrella of the dealers in derivatives, and other prime ments in the human condition if not inter- federal regulation and oversight, came movers in the world of finance, that help fered with. about as the wealthy sought to put their to determine the values of retirement port- Nor is a free-market economy fragile money where the grasping hand of gov- folios and other assets near and dear to the or unstable by nature, despite what politi- ernment could not confiscate or control it. American middle class. And the engine cians are wont to claim. The fragility and Absent the efforts of government every- that has powered American economic and instability that have brought about the re- where to control financial activity, market financial growth has always been volun- cent meltdown are consequences of gov- forces would have tended towards greater tary, free-market exchange. Government ernment mismanagement, not defects in transparency, as interest rates and lending intrusion into such activities always and the inherently self-regulating free market. found natural levels. everywhere hampers the market and en- The extent that we have an economic In this same spirit, the Treasury’s plan courages misallocation of resources. or financial “system” at all is a direct con- for “protecting consumers and investors” sequence of interfering in the workings means “making more regulations to re- Fallacy: The Economy can Be managed of the market, of trying to micromanage lieve consumers and investors of the re- The entire Treasury plan, along with all and predict outcomes for something that sponsibility of making informed choices the other half-baked attempts to reform or is neither manageable nor predictable. The and accepting the consequences of risk.” bail out “the financial system” perpetrated “system” is not the market itself but the Few Americans would buy a car or house- by this and the preceding administration, web of regulations and controls that know- hold appliance without doing a lot of re- is based on an almost-universally accepted it-all federal regulators — like Geithner — search and comparison shopping. This is fallacy, namely, that the economy is a “sys- have foisted on banks, investment houses, because, if we spend our money on things tem” that must be managed for optimal insurance companies, and the rest of the fi- that don’t work, we know that we have performance. But the economy, including nancial sector. That this system has failed no one to blame but ourselves. If we have the financial sector, is not a system like a so spectacularly is now being touted as an genuinely been cheated, the courts provide man-made electrical grid or even a natural excuse to impose another, more severe sys- recourse. phenomenon like the solar system. Those tem of controls that may well squelch free But very few do much research before systems, whether man-made or natural, market financial operations altogether. plunking their savings into a bank account operate according to laws that allow any As for the “systemic risk” that Geith- or mutual fund. The most that consumers observer to predict future states. ner wants to reduce, the Byzantine com- typically think to ask is how much inter- But an economy is something alto- plexity of modern finance has come about est will be paid. But because we know (or gether different. It is less a system than primarily as the market has tried to find think we know) that the government will a spontaneous order. While it obeys the innovative ways of avoiding the regula- guarantee our bank accounts and keep an laws of human action, it is impossible to tory burden, unnatural levels of risk, and eagle eye on investment houses, we almost predict future states because the economy moral hazard imposed by government never trouble ourselves to check the books itself is constantly in flux. The countless interference. Much-maligned “credit de- of the banks and investment houses. billions of decisions made each moment fault swaps” and similar derivatives, for by economic actors (people) are impos- example, were created to dilute the irra- Free market Is Better Than regulation sible to quantify, and their future conse- tional levels of risk introduced by the fed- In reality, the free market is a much bet- quences impossible to predict. The most eral government’s compelling of banks ter watchdog than government could ever that can be said about the spontaneous to loan to high-risk borrowers. “Hedge be. This is not to say that fraud will never www.TheNewAmerican.com 19
  • 21. EconoMy EconoMy occur absent government regulation. The infamous Ponzi scheme run by the Swedish “match king” Ivar Kreuger in the early years of the Great Depression defrauded individuals and entire coun- tries of hundreds of millions of dollars. Yet in our day, a modern Ivar Kreuger, Bernie Madoff, accomplished a similar feat under the very noses of supposedly watchful federal regulators. In point of fact, a private financial analyst, Harry Markopolos, informed the SEC back in 1999 that Madoff was likely a con man, since the returns on investment he was claiming were mathematically implausible. But the SEC refused to get involved, despite repeated warnings from Markopolos spanning a number of years. Do we really need more of the kind of protection that the SEC gave to Madoff’s victims? The new Treasury plan is riddled with the sorts of conceits that Big Gov- ernment know-it-alls love. It is founded in the inane notion that government overseers can somehow successfully micromanage the free market with its trillions of independent decisions every day. Like other such Big Government AP Images conceits, it will both diminish human liberty and stifle market productivity and innovation. Not only that, the entire Treasury plan The New GM: is completely unconstitutional. Nothing in the original Constitution was intend- ed to give the federal government carte blanche to nationalize financial opera- Government Made tions as it sees fit. But the lack of con- stitutional legitimacy has never troubled the Beltway know-it-alls in the past, and it doesn’t bother them now. The new Treasury proposal amounts to illegitimate nationalization of the na- Socialist Sweden refused to bail out its pivotal automaker tion’s finances in everything but name, Saab, yet our government jumps at the chance to own GM. the culmination of a decades-long pro- cess that began in the 1930s with the creation of the SEC, the FDIC, and by Charles Scaliger executive bonuses shelled out with taxpay- other first-generation financial com- er dollars, tiny Sweden has been quietly T mand-and-control systems. Now that here’s something fundamentally doing the right thing where its own pivotal the regimentation of the once-free fi- wrong with the world when a domestic automaker, Saab, is concerned. nancial markets has failed so spectacu- country known for being the very These days, Saab happens to be a GM larly, Obama, Geithner, and company embodiment of Old World socialism — subsidiary, but no matter: the maker of are proposing to cap decades of federal Sweden — serves up an object lesson in oddly styled but reliable sedans is on the mismanagement by a financial power capitalism to the United States. Amid all verge of bankruptcy, an event that would grab unexampled in American history, the global furor surrounding government throw large numbers of Swedes out of and complete the work begun by Her- bailouts, rescue packages for corporations work. GM, saddled with troubles enough bert Hoover and FDR. n deemed “too large to fail,” and scandalous domestically, has demanded that Stock- 20 THE NEW AMERICAN • ApRIl 27, 2009
  • 22. dollar lifeline, trying to save the automotive giant from it- self despite the cost to present As GM has now found out, the Obama and future taxpayers. administration takes its de facto ownership of the largest u.S. automaker Spectacular Fall GM’s fall has been noth- seriously. On March 29, GM Chairman ing short of spectacular. The and CEO Rick Wagoner was in effect fired 100-year-old corporation, one of the best-performing by the Obama administration as part of a stocks in the great bull mar- federally mandated restructuring plan. ket of the Roaring Twenties, has gone in a few short years from an American icon to the verge of col- bridge loans amounting to $13.4 billion, lapse, courtesy of a bubble economy that using TARP funds. deceived wiser souls than the decision But the bailout game is not a one-way makers at GM. Automobile manufactur- street. The famous dictum of American- ers, after all, are not expected to be ex- style socialism, first articulated in the perts in high finance or to understand the Supreme Court’s decision in Wickard v. arcana of Federal Reserve policymaking Filburn, is that government is entitled to and monetary policy that created the arti- “regulate that which it subsidizes.” In other ficial decades-long boom. All they knew words: feed at the government troughs if was that Americans, flush with boom-time you wish, but do not be surprised when cash, wanted their cars large and brash. the government keeps you locked in the When the bottom fell out of the econo- corral. my, Americans suddenly discovered they As GM has now found out, the Obama did not need SUVs the size of troop trans- administration takes its de facto ownership porters or three spanking new cars per of the largest U.S. automaker seriously. On household. GM and many other automak- March 29, GM Chairman and CEO Rick ers were left with enormous inventories Wagoner was in effect fired by the Obama and lines of production that were suddenly administration as part of a federally man- losing money. Such things always happen dated restructuring plan. This was followed holm bail out Saab, but the Swedish gov- when financial bubbles burst, and this time by the almost unbelievable promise that ernment has refused, tartly advising GM around, the entire automotive sector was the federal government would guarantee and other interested parties that Sweden caught flat-footed. all GM car warranties, an obligation that is not in the business of purchasing au- But those are the hazards of corporate could potentially cost American taxpayers tomobile companies. Saab is now in the America, especially in a sector like auto- billions of dollars more. Finally, President process of negotiating a restructuring deal mobiles where a privileged few (in this Obama gave GM 60 more days to mend with creditors, and thousands of Swedes case, the Big Three) have enjoyed special its ways, or be allowed to go bankrupt employed in the automotive sector are favors and a quid-pro-quo relationship (Chrysler, meanwhile, has been given a holding their breaths. with Washington insiders for decades. mere 30 days to consummate a merger Would that Washington politicos — os- Since late 2007, when GM share prices with Italian automaker Fiat). Should either tensible champions of free-market capital- were between $40 and $45, the company’s or both corporations meet these unlikely ism — showed as much restraint in this valuation has plummeted to practically goals, more federal billions may be in the instance as the socialist Swedes. But in nothing, with GM shares now barely above offing. Otherwise, GM and Chrysler, and the land of free-market risk and reward, $2 (levels not seen since the Korean War) the tens of billions of taxpayer dollars some, it turns out, are entitled to reward and expected by analysts to fall below $1 spent on them, will likely be lost forever. without exposure to the risk of failure. soon — if the company survives at all. The Obama administration’s newfound That, at least, is the message the Obama Accordingly, GM executives went to toughness is traceable in large measure to administration (and before it, the Bush ad- Washington last fall, hats in hand, to beg public furor over bonuses and other misuse ministration) has been sending loud and for subsidies to keep them afloat. General of taxpayer billions at AIG. The stick-and- clear for months. Millions of Americans Motors was too large to fail, they argued; carrot approach being used with automak- forced to accept the bitter consequences of GM’s demise would create tens of thou- ers is being touted as the right way to do foolish and excessive debt for houses and sands of unemployed and bring the auto- bailouts by the likes of U.S. News & World other things they could not afford could motive industry to a standstill. American Report. “The government should be tak- only watch and wonder as Washington ex- taxpayers were outraged when the Bush ing the same tough approach toward banks tended GM (and Chrysler) a multibillion administration extended GM and Chrysler and financial firms that it has toward De- www.TheNewAmerican.com 21
  • 23. EconoMy merely the shareholders and employees of GM and the rest, but also every U.S. taxpayer, who will be left — as he always is — holding the empty bag. Bailouts will have served only to exacerbate the hard- ship of recession. As with nearly every other action the Bush and Obama administrations have taken to fight the recession, the bailout and subsequent takeover of GM is fla- grantly unconstitutional. Nowhere in the Constitution is Congress given the author- ity to bail out ailing firms, and nowhere is the president or even the Supreme Court granted similar powers. What will the bankruptcy of GM, all but inevitable now, likely entail? In the short run, to be sure, more unemployment and Presidential pick: Fritz henderson hardship, although no more than has been was elevated to CEO of GM after the experienced by the millions already out Obama administration forced out of work in the United States. But in the his predecessor, Rick Wagoner, and longer run — years rather than months — gave GM an ultimatum to restructure those who buy up GM’s assets will reacti- AP Images within 60 days or go bankrupt. vate idled plants, rehire laid-off workers, and revive the U.S. auto industry in more profitable form. This would probably have troit,” U.S. News enthused. Applying the truly believes that, having thusly seized happened already, had the government lessons of GM and Chrysler to the banking private assets, the federal government will chosen not to intervene. sector would require the Feds to “assign ever voluntarily relinquish them? GM and the rest of the Big Three have deadlines” and “require progress reports,” But all such arguments obscure the long operated on the assumption that, no among other things, for ailing banks and neglected, and only correct, alternative: matter how bad things got, the U.S. gov- financials, instead of churning out bailout leave private corporations, large and small, ernment could be depended upon to bail monies without accountability. alone, to succeed or fail as market forces them out. This, after all, is what the Car- dictate. The unpleasant truth about most ter administration did for Lee Iacocca’s crossing the Nationalization rubicon of the corporations that have received fed- Chrysler. While Chrysler’s bailout-enabled This is the kind of argument we’re likely eral bailout monies, GM and Chrysler in- turnaround made the move seem like the to hear more of in coming months. In es- cluded, is that they will likely fail anyway. right thing to do, it encouraged moral haz- sence, it’s a plea for the federal govern- Most of the hundreds of billions shoveled ard in the auto sector. Little wonder that ment to drop the façade of benefactor and into AIG were promptly sent off to creditor GM over the years has allowed itself to assume outright ownership of the corpora- institutions, paying down some of AIG’s grow into an unwieldy bureaucracy slow tions it keeps afloat. With ailing banks, the debt but doing little to address institutional to innovate and reluctant to change; its government has already purchased gobs of and balance-sheet problems. While GM management and shareholders cling to preferred stock, crossing the nationaliza- has made some effort at restructuring, the the cherished illusion that the government tion Rubicon in everything but name. Who government loans are very likely to prove will protect them from the consequences too little, too late; certainly of poor decision making. GM’s share price anticipates As a crowning irony, Saab may well As with most of the actions the bush and such an outcome. outlive her onetime benefactor. Perhaps And what will the politi- motivated by the knowledge that no sub- Obama administrations have taken to fight cians say when GM, AIG, sidies are forthcoming, Saab appears to be the recession, the bailout and takeover Chrysler, and many more about to turn the corner, thanks to accom- banks that have suckled from modating creditors, although the outcome of GM is flagrantly unconstitutional. the federal teat go bankrupt is still in doubt. But there’s no question nowhere in the Constitution is Congress, anyway, defaulting on the GM could do worse than follow Saab’s repayment of U.S. govern- example. the president, or the Supreme Court given ment loans into the bargain? It’s only a pity that Washington, in this the authority to bail out ailing firms. The consequence will be that instance, has proven unwilling to follow bankruptcy will affect not Stockholm’s example. n 22 THE NEW AMERICAN • ApRIl 27, 2009
  • 24. intERviEw The Burden of Empire Photo by Michael Barrett Austin Eric Garris of AntiWar.com observes how difficult it is for America to bear the heavy burden of a globe- spanning empire. Interview of Eric Garris intervention. It could be written by Thomas R. Eddlem from the point of view of the left be vital national security interests in terms or the right or libertarian. As long as it’s of the military. In terms of the fact that E ric Garris is the webmaster of the not sectarian and as long as it doesn’t ad- we are affected by what goes on around nonpartisan, daily global news vocate government force. the world, that’s true. And we should have source AntiWar.com. Since 1995, friendly relationships and free trade with AntiWar.com has been dedicated to cov- TNA: Most of the people reading the new everybody. But just because we have a na- ering war and war’s effects, and as a co- AmeRicAn are coming from the “right,” tional security interest, it doesn’t mean we founder of the site, Garris has been there and one of the fears I suspect readers have the ability or the right to tell other from the beginning. He is in a unique posi- would have about AntiWar.com is that it countries what they can or cannot do. And tion to speak about the high cost of perpet- would be a pacifist organization. in fact, when we have, it has backfired. ual war and the heavy burden of empire. Garris: We’re not pacifists. There are, of For the last 50 years the United States has course, pacifists who support us, read us, taken part in a series of interventions, none The New AmericAN: What is AntiWar and we sometimes run pacifist articles. But of which has accomplished their purported .com? The name sounds leftist. our primary focus is anti-interventionism. purpose. Eric Garris: The anti-war position was None of the people who are running Anti- more associated with conservatives until War.com are pacifists. We all believe in TNA: Give me an example of that. World War II. So it really has a long- self-defense. We all believe in the right to Garris: One of the best examples of it was standing conservative tradition, going bear arms. And we believe in the right of our intervention in Afghanistan against the back to the America First movement. The the people to rise up against the govern- Soviet Union. And other areas where we Anti-Imperialist League was both left and ment. But that’s different than the gov- were intervening in the Cold War. It re- right. ernment going in and overthrowing other sulted in our bringing forces like al-Qae- governments. da, like the Taliban, to power in regions TNA: Which pretty much sums up Anti­ where they had been basically weak be- War.com, doesn’t it? TNA: If you ask a politician, “When fore. I would argue that our involvement Garris: It does. We really need a new An- should we go to war?” they all say, “Well, in Vietnam led to a greater establishment ti-Imperialist League for the 21st century. we should only go to war to support our of communism in Southeast Asia. We have vital national security interests.” Yet it never accomplished what we set out to ac- TNA: What’s the criteria for an article seems like we have “vital” national se­ complish. And even where we do claim being posted on AntiWar.com? curity interests in almost every nation on accomplishments, they are never the ac- Garris: The criteria is that it’s a well-writ- Earth, according to politicians today. Why complishments we pretended that we were ten piece, but that it is also against U.S. is that? going to war in the first place for. Garris: One of the reasons we have vital Thomas R. Eddlem, a freelance writer, served as the national security interests in these regions TNA: When we talk about “accomplish­ John Birch Society’s director of research from 1991­ is because we have military there. If we ments,” for example, “we kept Thailand 2000. didn’t have military there, they wouldn’t out of communism with our intervention in www.TheNewAmerican.com 23
  • 25. intERviEw “The more the united States is involved around the world the more excuses there are for doing any number of things at home. it’s the classic 1984 model that the government uses foreign threats in order to keep people under the thumb at home. And that’s the essence of empire.” — Eric Garris Vietnam.” The question isn’t what the end was, but what else could we have accom­ plished otherwise with that massive out­ Photo by Michael Barrett Austin pouring of money and blood? It’s the old economic concept of “opportunity cost.” Garris: Right. Exactly. liberties, free speech, the right to keep and TNA: The other side will paint those who bear arms. Those are all affected by the TNA: Most Americans are aware of the are opposed to intervention in Afghanistan government’s desire to go to war. You saw fact that we have troops in Iraq and Af­ as being naïve, even suicidal in a lot of after 9/11 there were calls from tradition- ghanistan. Where else are U.S. soldiers instances. But when you press them what ally sane voices for tearing up the Con- based abroad? the threat is, they always seem to come stitution. That’s a really, really dangerous Garris: Well, we have some presence in down to someone with a nuclear bomb in effect of war and it’s historically what over 100 nations. Most Americans don’t a suitcase. Where’s the practical threat in happens. When countries get involved in realize that. We have troops in, for ex- that? big wars, they start setting aside liberties ample, Germany and Japan, left from Garris: What’s that got to do with Afghan- pretty quickly. World War Two. And we’re not talking istan, first of all? There’s been a lot writ- about a few hundred or even a few thou- ten about whether there is something as a TNA: You hear from the other side, espe­ sand troops. We’re talking about tens of suitcase nuke. There may be something as cially among Bush Republicans, that the thousands of troops that remain in those small as a U-Haul truck nuke, but you are war on terror has “worked.” There hasn’t countries that are no longer a threat to us. talking about something that’s a little bit been an attack on American soil since Sep­ They now stay there to extend our reach of bigger than a suitcase. What’s that got to tember 11. power to other nations.... do with Afghanistan and Pakistan? If there Garris: But they can’t point to a single are loose nukes, I would look at the places example of a real attack that was thwarted. TNA: America has — unfortunately — that have the most and are the most dissi- The government has never been able to been moving from a republic to an empire. pated around the globe, and that’s Russia say, “Here is a plot that was a real plot,” You talk quite a bit about empire on the and the United States. This is the area that not just some guys talking on the Internet website. What role does AntiWar.com have is the most scary in terms of nukes getting who didn’t have access to anything, but a in the fight against empire? in the wrong hands. Pakistan is certainly real substantial plot. We were presented Garris: We see that the issue of war and not a safe proliferator, but it’s certainly not with a lot of scary things, like the shoe peace is key to the issue of empire, and the the scariest in the world. bomber, but these were not significant issue of empire is key to the issue of big threats, certainly not threats that warrant- government and getting rid of individual TNA: You cover issues other than purely ed the sacrificing of liberties that resulted. rights. The more the United States is in- the combat area of war. One of the things And most of these plots that we heard volved around the world the more excuses that I love about AntiWar.com is that you about continued for some time despite all there are for doing any number of things cover the domestic impact of war pretty these so-called “safeguards.” I remember at home. It’s the classic 1984 model that rigorously. listening to one of the 9/11 widows, and the government uses foreign threats in Garris: We cover the “war on terror” be- she was saying, how is it that with the de- order to keep people under the thumb at cause that is clearly tied to U.S. foreign fense budget we had in 2001, we were un- home. And that’s the essence of empire, policy now. The Patriot Act, where gov- able to stop a plane hitting the Pentagon and that’s what Obama appears to be con- ernment has used the threat of war to crack 25 minutes after the FAA knew they were tinuing. He has a slightly different flavor. down in so many areas: in the areas of civil heading to the Pentagon? How is it that 24 THE NEW AMERICAN • ApRIl 27, 2009
  • 26. such a tremendous defense machine that defense spending. He took President Garris: Unfortunately, we see a lot of the we had couldn’t deal with that? Clearly, Bush’s surge­level military budget and progressive left — I hate that term, but more money and getting rid of more liber- increased it by four percent. If he’s going they apparently like it — they don’t want ties is not the answer. to decrease our involvement in Iraq and to challenge Obama on anything. elsewhere, where’s the peace dividend? TNA: What’s your initial impression of Garris: You read the analysts and they TNA: Why not? the Obama presidency? claim that there’s not really any savings Garris: Because they think he is sup- Garris: Obama’s slogan “Yes, we can” is in bringing the troops home, because it porting enough of what they want that kind of a scary one. Because from a for- costs more to bring them home than to they don’t want to interfere in any way. eign policy perspective, it’s saying we can keep them where they are. Government And you’ve seen a lot of the left essen- do anything anywhere. And that’s a very, sets up Catch-22s for itself everywhere, tially roll over, on the issues of war and very ominous thing for anyone in charge not just in defense. And once they start on the issues of civil liberties, and are ei- of the government to say. something in motion it can never be ther defending him or are just silent. And stopped. that’s unfortunate, but predictable. A lot TNA: Obama ran on the campaign that he of people are more interested in partisan would remove the United States from Iraq, TNA: Let’s talk about the anti­war left. politics or in other issues where they were but during the campaign he began to back To a certain extent, they were interesting only using the war as an excuse [for their off and said 16 months. And most recently but politically powerless during the Bush opposition to a candidate or party]. Al he said 19 months, but then even after administration, just as people like myself Franken comes to mind. He is an extreme 19 months they wouldn’t all come home. who are on the anti­war right are now hawk when it comes to Afghanistan, yet Where does he stand with his pledge? interesting but politically powerless in he has been portrayed as an anti-war can- Garris: About where Richard Nixon stood Washington under Obama. What role do didate. And I think that’s false. He has with his pledge to get us out of Vietnam. In you think the anti­war left will have in the merely used the Iraq War as a political terms of the same percentages, he reminds fight against empire with a Democratic lever against the Republicans. Within the me very much of what Richard Nixon said majority in Congress and a Democrat in left it’s truth time. And you’ll see who he was doing in Vietnam. the White House? really is truly against American empire He wanted to end the war and who isn’t by how they by winning it. And although line up against the Obama Obama is not talking about administration. winning the war anymore, I’ve seen this before. he’s talking about an in- This happened during the definite continuation of it. early years of AntiWar. If he goes through with com, for example, during his plan, we’re still talk- the Kosovo war, when you ing about leaving 50,000 saw a split in the left over troops and between whether they supported the 100,000 and 200,000 con- U.S. intervention in Koso- tractors in Iraq who are vo. You saw this during the going to be there provid- Vietnam War in how slowly ing security assistance for the so-called dove liberals the Iraqis. In other words, came to oppose Lyndon they’re going to be in Johnson. combat. And if something happens, there’s going to TNA: And you could argue be an escalation there. So from the right’s perspective, Obama is continuing the the Republican side of the trap that George Bush spectrum, a lot of the “Han­ set. With Obama’s plan, nitized” people on the right there’s no way we’re during the Bush administra­ going to be getting out of tion supported the Iraq War Iraq any time in the next or were silent. 10 to 20 years. Garris: Exactly. n TNA: Barack Obama A longer version of this inter­ just released his first view is available, in two parts, at budget and part of that thenewamerican.com. At the web­ budget was obviously site, search for “AntiWar.com.” www.TheNewAmerican.com 25
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  • 28. cUltURE Sign of the times: Mounted on a sign pole in Times Square, this New York Police Department security camera is itself a sign that the ubiquitous surveillance depicted in 1984 has already become commonplace. Day by day and almost minute by minute the past was brought up to date. In this way every prediction made by the Party could be shown by documentary evidence to have been correct; nor was any item of news, or any expression of opinion, which conflicted with the needs of the moment, ever allowed to remain on record. In 1949, the idea of altering back copies of newspapers seemed impossible. However, in today’s Internet age, newspapers are struggling to stay in print, and electronic data is increasingly replacing hard copy information. If all information eventually becomes electronic, it would be very easy for bureaucrats to change what back cop- ies of newspapers and magazines say — 1984 revisited exactly as in Orwell’s novel. Furthermore, even though current soci- ety has not advanced to this extreme, his- AP Images tory has been altered, changing the true nature and records of wars, revolutions, the United Nations, trade treaties, the Fed- Sixty years after Orwell’s 1984 was first published, his tale of eral Reserve, etc. Although everything in Oceania is in a world ruled by Big Brother is proving to be an ever more short supply (except that reserved for the frighteningly accurate depiction of the world we live in. elite “Inner Party” members), the govern- ment’s economics ministry is termed “The Ministry of Plenty.” This reminds one of by James Perloff nia (where the book’s protagonist, Winston the “Security and Prosperity Partnership” Smith, lives), Eurasia, and Eastasia. This born out of NAFTA, which claims we are G eorge Orwell’s novel 1984, pub- is reminiscent of the regional approach to enjoying “prosperity” even as millions of lished in 1949, portrayed a future global governance (European Union, North jobs are slashed and we drown in inflation. totalitarian world, ruled by a seem- American Union) now unfolding. In 1984, the Ministry of Plenty spews out ingly omnipotent tyrant called Big Brother. falsified statistics: When the actual year 1984 rolled around, Altering Facts the world didn’t look just the way Orwell The Party that runs Oceania has a slo- The fabulous statistics continued to had envisioned; therefore some criticized gan: “Who controls the past controls the pour out of the telescreen. As com- the book as a failed prophecy. Today, how- future: who controls the present controls pared with last year there was more ever, the world looks much more as Orwell the past.” Winston works in the Ministry food, more clothes, more houses, envisioned it. Moreover, if you read Or- of Truth, where newspapers, periodicals, more furniture.... well’s novel carefully, it’s not even certain books, and other literature forms are con- that the year is 1984 — that was simply tinuously changed according to the gov- Even today, the U.S. government fudges what the people were told by the govern- ernment’s wishes. For example, if the statistics to make the realities look bright- ment, which controlled all information. Times reported Big Brother made a speech er. For example, the new AmeRicAn of Let’s explore some of the ways 1984 is predicting something, which later did not June 23, 2008 exposed how the govern- being fulfilled. happen, the Times would be subsequently ment has continually altered methods of In the novel, all people of the world fall corrected so that it appeared Big Brother determining the Consumer Price Index. under three regional governments — Ocea- had made the correct prediction. Under Richard Nixon, food and energy www.TheNewAmerican.com 27
  • 29. cUltURE AP Images through their home televisions, which cannot be turned off. To quote the book: Eye in the sky: Members of the crew for this new York Police Department unmarked AP Images surveillance helicopter pose for a photo. From high above the city, the helicopter’s onboard equipment can make out license plates and pedestrians’ faces. With the development of television, and the technical advance which made it possible to receive and transmit si- costs were eliminated from the new “core mal”; abortion, previously a crime, is multaneously on the same instrument, CPI.” Later: today a “right”; advocates of traditional private life came to an end. Every citi- family values, once mainstream, are now zen, or at least every citizen important In 1983, the Reagan administration “extremists.” enough to be worth watching, could decided that rising real estate costs be kept for twenty-four hours a day were causing the CPI to be overstat- A World Without Freedom under the eyes of the police. ed, so the Bureau of Labor Statistics 1984 says: (BLS) substituted an “Owner Equiv- Today, with the advent of e-mail and cell- alent” measurement, basing housing It was always at night — the arrests phones, governments are increasingly ex- costs on what homeowners might invariably happened at night. The ploiting their ability to spy on citizens in get if they were renting their houses. sudden jerk out of sleep, the rough the name of “security,” even listening in Homes were labeled an investment, hand shaking your shoulder, the through cellphones that have been turned and the cost of buying a home (like lights glaring in your eyes, the ring off. Security cameras are more and more other investments) was no longer in- of hard faces round the bed. In the prevalent in buildings and on streets, and cluded in the CPI. vast majority of cases there was no with the recent compulsory upgrading of trial, no report of the arrest. People television from analog to digital, some ask Both of the Bush administrations and the simply disappeared, always during if the government is preparing for an era Clinton administration further modified the night. Your name was removed when televisions will transmit as well as how the CPI is determined, each change from the registers, every record of receive signals. The U.S. government is serving to lower reported price inflation. everything you had ever done was offering free $40 coupons to encourage The end result of all these tweaks is that wiped out, your one-time existence citizens to make the transition to digital the U.S. now reports an annual price-in- was denied and then forgotten. You TV — as if entertainment were a consti- flation rate of about four percent, whereas were abolished, annihilated: vapor­ tutional right. true price inflation is closer to eight per­ ized was the usual word. Oceania is continually at war, the wars cent or more. This enables the government never being actually won. This resembles to cheat senior citizens out of their Social Many film fans are familiar with the 1995 the current war on terror, which can never Security: Social Security payments are os- Sandra Bullock thriller The Net, about a be “won” since the enemy is far less de- tensibly tied to inflation so that recipients woman who no longer “exists” after her finable than in traditional wars, which get automatic cost-of-living increases, but identity is destroyed by the cyber-manip- were fought against distinct nations, with payments are based on a distorted CPI, ulations of the movie’s villains. And today, uniformed armies, that could be forced rather than the actual rising costs the el- victims of real-world identity theft are to capitulate. In 1984, bombs sometimes derly face. common. Like money and information, the drop on London (where Winston lives), In the culture of 1984, the truth is re- more your identity becomes electronic, the rousing the people to patriotism. But Win- versed. Two of the governments’s main more it becomes erasable. Orwell warned ston’s lover Julia speculates the bombs slogans are “war is peace” and “freedom us that someday identity loss may become “were probably fired by the Government is slavery.” Today, many of yesterday’s a function of government. of Oceania itself.” This will have a fa- truisms have also been reversed. For ex- In 1984, citizens are under constant miliar ring to those knowledgeable about ample, homosexuality, once understood electronic surveillance by the Thought the questionable circumstances surround- as perverted, is now construed as “nor- Police, not only in the city streets, but ing events that have propelled America 28 THE NEW AMERICAN • ApRIl 27, 2009
  • 30. into wars, including the sinkings of the ists. Compiling a profile of Maine and Lusitania, Washington’s fore- any person would be possi- knowledge of the Pearl Harbor attack, the ble, and such a profile could how did Orwell gain such keen insight? questions surrounding the Tonkin Gulf be used to put a law-abiding According to former Mi6 officer John incident, and the pre-9/11 evidence that citizen on the “no-fly” list for Coleman, Orwell was attached to Mi6 should have enabled Washington to con- example. nect the dots to prevent the worst terrorist (britain’s CiA). Writes Coleman: “Orwell attack on American soil. Interpreting Orwell had to write his startling revelation as Oceania uses a language called New­ How is it that Orwell, writ- speak. It restricts vocabulary to very few ing 60 years ago, had such fiction to avoid being prosecuted under words. Each successive Newspeak diction- keen insight into the future? britain’s Official Secrets Act.” ary deletes more words. The eventual re- According to former MI6 of- sult is to eliminate ideas unacceptable to the ficer John Coleman, Orwell state, since words for those ideas no longer was himself attached to MI6 (Britain’s This writer has seen all three versions, exist. Orwell pointed out that ultimately an version of the CIA). As such, Orwell be- but be forewarned: none are readily avail- older document, such as the American Dec- came aware of the aims and mischief of the able on DVD. They must be purchased laration of Independence, would become power elites. Writes Coleman: “Orwell had from rare movie dealers, or through per- unreadable gibberish. Is this unlike today, to write his startling revelation as fiction sonal sellers, such as on ebay.com. Ironi- when “dumbing down” has left American to avoid being prosecuted under Britain’s cally, the unavailability of the three films public school students less aware of their Official Secrets Act.” It doesn’t reduce the raises the question of one more possible country’s heritage and even less equipped chills in anyone’s spine to know 1984 was evidence that 1984, where the past simply to read books of the past? Orwell’s last book; he died at 46. disappears, is becoming reality. In the novel, Winston is eventually ex- 1984 has been filmed three times. A However, as we went to press, the Hurt- posed as a “thought criminal” and impris- 1954 BBC television version ran very Burton version could be seen online at oned by the Ministry of Love (the secret close to the novel; a 1956 Hollywood Google Video, at this link: http://video. police). After many tortures, he still re- production took considerable liberties google.com/videoplay?docid=-54646256 tains a shred of independent thinking. To with the story, to the chagrin of Orwell’s 23984168940. Be advised that the bleak finish breaking him, his jailers bring him widow. The last version, released in 1985, film, like the novel, contains moments of to the place every prisoner dreads: Room starred John Hurt and Richard Burton in sex, nudity, and violence, and no two-hour 101. Room 101 is different for every per- his final role. It stayed very close to the movie can truly capture all the implica- son. It contains their greatest personal hor- book, and is brutal to watch. tions of Orwell’s book. n ror. In Winston’s case, he has a primal fear of rats. His head is placed in a two-com- Who will be watching the partment cage. The compartment furthest watchers? A retail salesperson away is filled with hungry sewer rats. If the displays two digital TV converter intervening door dropped, the rats would boxes. Some wonder if the devour Winston’s face. At this point, he government’s mandated switch to completely loses it; he is broken. digital TV is preparing for television At the book’s end, the Thought Police sets that will someday transmit as have turned Winston free because he no well as receive signals, à la 1984. longer constitutes any threat. He believes every bit of propaganda coming from the telescreen. He gazes at Big Brother’s image. And the book closes with these words: “He loved Big Brother.” How did the Thought Police know Win- ston’s darkest fear was rats? Because they had him, like other citizens, under con- tinual surveillance through telescreens and other means. Likewise, a government today could discover a person’s greatest fear by monitoring his or her e-mails and phone calls, and many ordinary citizens AP Images have been monitored by the government’s once-secret warrantless electronic search program that was supposed to be limited to overseas communications with terror- www.TheNewAmerican.com 29
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  • 32. THE GOODNESS OF AMERICA No cussing club Wow! What began simply as a young the rescue began thanking him, “I sort of “Let no unwholesome word proceed from man asking his friends to control their lan- freaked out, and I was nervous and shaky. your mouth, but only such a word as is guage has become a worldwide movement These five women opened their purses and good for edification according to the need to encourage edifying speech. Way to go gave me Handi-Wipes. I was covered in of the moment, that it may give grace to McKay! blood and dirt from the subway tracks.” those who hear.” (Ephesians 4:29) After cleaning up with the Handi-Wipes, Oftentimes we associate late-night TV he simply proceeded to work for another shows, such as the Tonight Show, with ce- Another Subway rescue day at the office. lebrities. However, on January 21, 2009, Jay Leno interviewed an unusual guest: à la Wes Autrey? 15-year-old McKay Hatch. In 2007, Hatch Not! Autrey’s memorable 2007 derring-do Pink Lemonade founded his first No Cussing Club at his of protecting a man having a seizure by What do you do when life gives you lem- junior high school in South Pasadena, covering the man while the subway train ons? Make lemonade? That’s what eight- California. sped over both men quickly entered the year-old Victoria Petrucelly did; then she According to McKay’s website, www. mind of Chad Lindsey on March 16. But sold it and donated all the proceeds to nocussing.com, the teen was dismayed at the thought just as quickly exited, as Lind- charity. the language many of the children at his sey decided, “I am not doing that. We’ve According to the March 23 Orlando school, including some of his friends, were got to get out of here.” Sentinel, Victoria and her friend Jesse using. Rather than just put up with it, as so And so they did. The March 17 New Theobald first wanted to have a lemonade many of us are prone to do, he decided to York Times related a few brief moments of stand last year. Shortly after they decided do something about it. He mentioned it to the life of Chad Lindsey — proofreader, to do this, though, Victoria’s mom, Ange- his friends and actually challenged them actor, subway hero. Lindsey was waiting la, was diagnosed with breast cancer. The to stop cussing. for a subway train when he noticed a man girls decided to make their lemonade pink He says his friends were shocked; most lose his balance and fall off the platform (the “Think Pink Lemonade Stand”) and of them didn’t even realize they were using onto the tracks. “He fell, and immediately donate the proceeds to the M.D. Anderson offensive language, and certainly had no hit his head on the rail and passed out.” Cancer Center in Orlando. They hoped to idea it was bothersome to Hatch. Surpris- Chad dropped his bag and jumped down raise $50 for the center where Angela was ingly, and very pleasantly so, they accept- to try to rouse the injured man, but it was being treated. ed his challenge to stop swearing, and thus no good; the man was bleeding profusely Sadly, Angela died on Valentine’s Day was born the first No Cussing Club. The and unconscious. of this year. But Victoria decided to put word spread and after one month the club Lindsey yelled to the people on the her grief aside and go ahead with the had 50 members. When McKay got into platform to call the police. As the train plan. She and Jesse were joined by their high school, he founded a similar club, quickly approached, that thought of Au- classmates at the Christ School for their and had over 100 students join immedi- trey’s dramatic rescue flashed into Chad’s sale on March 21 and 22. When public- ately. The word has further spread until mind. And as the thought fled, he grabbed ity spread about the girls’ effort, many today there are over 20,000 members in the unconscious man and lifted him up local individuals and companies decided 25 countries. to the platform. “It wasn’t very elegant. I to pitch in and donate cash and supplies. Club members take the “No Cussing just hoisted him up so his belly was on the Two companies even donated a portion of Challenge,” committing to use better lan- platform. It’s kind of higher than you think their weekend sales. guage. However, this is not just a “nega- it is.” Others on the platform pulled the The girls estimate they served over tive” challenge, to not use bad language, man up and out of harm’s way with time 65 gallons of lemonade and used over but a “positive” challenge as well, to use to spare for Lindsey to also clear the tracks 1,500 cups. Did they reach their goal of “polite, respectful, and kind language.” — the train arrived in about 10 seconds. $50? Yes, and actually did a little better Further, the club’s motto is, “Leave Lindsey’s career as an actor is not ir- — $23,856.73. The two third-graders pre- people better than you found them.” This relevant to this story: he just happened to sented their check to the cancer center on concept has impacted not only the recipi- be acting a role at that time in which he Monday, March 23. ents of the kind language, but the speak- had to consistently lift a character who “It was heartwarming to watch how two ers as well: McKay relates that many club cannot walk. What better preparation for little girls and their third grade classmates members have noticed a change in their the task he had to perform that day in the could make such an impact on the commu- own lives from using positive language. subway? nity,” said Jesse Theobald’s mother, Jean. And the concept has progressed to the Wishing (unsuccessfully) to remain “We are hopeful that everyone touched by club members “looking for opportunities anonymous, Lindsey quietly boarded this story will realize that anyone — even everyday to help people and lift them up the train he had been waiting for. When children — can make a difference.” n through their words and actions.” several passengers who had witnessed — liAnA stAnley www.TheNewAmerican.com 31
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  • 34. HistoRy— Past and PERsPEctivE versity of Indiana in Bloomington, issued the second volume of his research, Sexual Behavior in the Human Female, a work Kinsey: likened to an “atomic bomb” dropped on traditional morality in America. It was a follow-up to Kinsey’s 1948 work Sexual Behavior in the Human Male, and together, Deviancy they were a one-two punch, the Fat Man and Little Boy of the new morality, help- ing to change the way Americans viewed their nation — perhaps forever. Is the New Father of the Sexual Revolution This is not hyperbole. If we are to believe Kinsey, America didn’t need a sexual rev- Normal olution — just sexual recognition. Accord- ing to his findings — based on informa- tion collected from thousands of subjects — sexual behaviors that were considered rare and deviant in the 1950s were actually quite common. For example, he claimed that 10 percent of American men were homosexual for at least three years of their lives; 69 percent of men visited prostitutes; 50 percent en- gaged in adultery; and, overall, 95 percent of the American male population regularly indulged sexual deviancy. He claimed that 50 percent of women had sex before mar- riage — shocking in the 1950s — 26 per- cent practiced adultery, and 87 percent of pregnant single women and 25 percent of married ones were having abortions. Based on these findings, he claimed that sexual promiscuity was normal. Moreover, AP Images he said that children are sexual from birth and that rape is one of the most “forget- table” crimes. All this, people were told, The Kinsey Syndrome, a DVD documentary about the “Father was based on exhaustive sex research conducted by Kinsey et al. It carried the of the Sexual Revolution” and his research, examines weight of academia and the researcher’s Kinsey’s methods, his supporters, and his legacy of lust. credentials as an Sc.D. In a nutshell, man had never seen any- thing like it before. This was a supposed by Selwyn Duke our history. Lying in contrast is the image man of science, during a time in history of the 1950s, supposedly a time of white when science was perhaps most respected WARNING: Due to the subject matter, picket fences, Leave It to Beaver, and sex- (people are a bit more cynical today), who this article contains graphic descriptions ual “repression.” Yet some would trace the claimed to have conducted the world’s first of pedophilia and other aberrant sexual beginning of the sexual revolution back to wide-scale study of man’s sexual behavior. behavior. — Ed. that purportedly staid decade, and among This wasn’t “just religion” making moral I these are the creators of a new documen- pronouncements. This wasn’t the Moral f you’re like most Americans, when tary, The Kinsey Syndrome. Majority. This was science, which, as we hearing the term “sexual revolution,” The documentary identifies a seminal all know, is like Joe Friday and gives us you think of the 1960s. Conjured up year in the sexual revolution: 1953. What “just the facts, ma’am.” are images of hippies in tie-dyed t-shirts, happened then? Alfred Kinsey, the famous But here are the facts. As C.S. Lewis Woodstock, rock ’n’ roll, and everything — perhaps we should say infamous — once said, “Sex is not messed up because else that attended that tumultuous time in “sex researcher” and professor at the Uni- it was put in the closet; it was put in the www.TheNewAmerican.com 33
  • 35. HistoRy— Past and PERsPEctivE killing field, and in doing so, cum-fiction writer claimed to be presenting he helped open the closet of data based on interviews with thousands of While Kinsey claimed to be presenting the American mind and loose average men and women, his sample was data based on interviews with average men the dogs of lust. fatally — and purposely — skewed. As for the incidental error, as famous psycholo- and women, his samples were skewed. Exposing the Kinsey Con gist and Kinsey friend Abraham Maslow For example, he included sex offenders, Here is where some may pointed out, only very rare people (espe- say, “All right, you claim it’s cially in the relatively reserved 1940s and prostitutes, and pimps in his data. Basically, harmful, but should we sup- ’50s) would fill out a comprehensive sur- he portrayed perverts as the norm in an press the truth? The truth will vey of intensely personal questions. effort to prove perversion was normal. set you free, right?” But if the sexual revolution is a child, it In fact, these people were so rare that Kinsey couldn’t find enough to constitute is an illegitimate one — be- a scientific sample. But that didn’t deter closet because it was messed up.” Sexual cause its father was certainly so. That is to him. He wrote that he plied America’s desires must be bayed by a thousand inter- say, Alfred Kinsey was the author of pos- prisons and back alleys, including in his nal and external controls, those elements sibly the most destructive scientific fraud sample 1,300 to 1,400 sex offenders; 199 that have, to varying degrees, always in man’s history. sexual psychopaths; other prisoners; and existed in civilization and that libertines In exposing this deception, a great debt members of Chicago’s homosexual under- call “repression.” And what was the effect is owed to Dr. Judith Reisman. She is The ground, people from its bathhouses and of hearing that America was really more Kinsey Syndrome’s leading expert witness, homosexual bars. He then mixed them in Nero and Caligula than Ozzie and Harriet? and the documentary is based mainly on his “regular-male data.” People said to themselves, “Hey, if all this her work, which represents decades of And Kinsey repeated this fraud when is truly so common, why shouldn’t I give dogged research into the Kinsey con. And working on Sexual Behavior in the Human freer rein to my deeper, darker urges? Why together with executive producers Joseph Female some years later. The Kinsey Syn­ should I be the only one missing out on M. Schimmel and Christian J. Pinto, she drome tells us, “He redefined ‘married the fun?” has helped create a masterpiece in the ef- women’ to include any woman that had As an example, The Kinsey Syndrome fort to expose Kinsey. lived with a man for at least a year, a broad points out that Hugh Hefner founded Play­ So, what of the profound disconnect description that included prostitutes who boy magazine in 1953, the same year that between the 1950s’ white-picket-fence had lived with their pimps.” Kinsey regu- Kinsey published Sexual Behavior in the image and the dark underbelly that Kinsey larly sought such women out and included Human Female. Was this a coincidence? claimed was its reality? The Kinsey Syn­ them in the regular-female data. Well, Hefner read Sexual Behavior in the drome points out that while the researcher- It may be hard to believe that a man Human Male when he was young and wrote about it in a college publication, and the work convinced him that he had been lied to by the wider society. Moreover, The Kin­ sey Syndrome presents a clip of Hefner saying, “I refer to it [Kinsey’s Human Female book] in the introduction to the first issue; I called it ‘the other great book that was coming out in 1953.’” This is why Kinsey has been called the “Father of the Sex- ual Revolution,” why Human Events listed Kinsey’s Human Male book as “the fourth most harmful book of the19th and 20th centuries,” behind only The Communist Manifesto, Fat man and Little Boy: Kinsey Mein Kampf, and Quotations twice dropped the bomb on from Chairman Mao. Kinsey America’s traditional morality claimed to have opened Amer- with his infamous books. ica’s closet and found a sexual 34 THE NEW AMERICAN • ApRIl 27, 2009
  • 36. who, as recently as 2004 in the biograph- ical movie Kinsey, was lauded as a brave revolutionary bucking a “McCarthyist” sys- tem could be guilty of such striking scientific fraud; thus, The Kinsey Syndrome documents its accusations well. For example, the documen- tary tells us that Kinsey divulged on page 39 of his Human Male book that he also included “boot- leggers, gamblers, male determined detective: Dr. Judith prostitutes, ne’er do-wells, Reisman has dedicated decades of pimps, thieves, and hold-up research to exposing the Kinsey con, and men” in the regular-male her work is the foundation for much of data. The Kinsey Syndrome The Kinsey Syndrome. also includes other ironclad the study of the evidence, such as interviews gall wasp and armed with a Doc- age. In a letter written as a YMCA coun- with figures such as Dr. Paul Gebhard, tor of Science degree from Harvard Uni- selor, he boasted of a “nature library” he the co-author of Sexual Behavior in the versity, he certainly was acquainted with possessed, comprising pictures and draw- Human Female and second director of the scientific method. So what made this ings of nude men and boys that he would the Kinsey Institute. He admitted when man of science so unscientific in the area show to young male charges while camp- asked about the research subjects that, of sexuality? ing — in his tent — late at night. “Fifty-five percent were prisoners.... We Quite simply, insects were Kinsey’s spe- It is this obsession with children that led didn’t have enough non-prison people to cialty, but sex was a labor of lust. As Ken- to Kinsey’s most serious trespasses. The do much of a comparison — but he [Kin- neth Anger, an occultist and close friend of Kinsey Syndrome speaks of the infamous sey] didn’t do a comparison. He simply the researcher who is featured at the Kin- “Table 34,” a chart whereon Kinsey listed took the prison people he got and used sey Institute, said, “To obtain grant monies the orgasmic responses of his test subjects them as his less-than-college educated and maintain the support of the University, — all children — some still in infancy. sample.... By emphasizing the less-than- Kinsey needed the excuse of research … Among these findings were that “research- college educated sample, he introduced a to validate his 24-hours-a-day obsession ers” observed 26 climaxes in a 24-hour pe- lot of errors into the data.” That may be with sex.” And as The Kinsey Syndrome riod — in a four-year-old boy — and at the understatement of the year. It’s more pointed out, in an effort to justify his own least one example of such a response in accurate to say that he portrayed perverts deviancy, Kinsey aimed to destroy the tra- a four­month­old girl. Such claims could as the norm in an effort to prove perver- ditional values of his youth and “reshape understandably leave people speechless, sion was normal. America in his own image.” but this doesn’t explain the mind-numb- And this fact is well known. For ex- But how twisted was this image? For ing incuriosity with which they were met. ample, the British medical journal Lancet one thing, Kinsey was a sadomasochist As the Intercollegiate Review wrote, “So wrote that Kinsey “questioned an unrepre- with a history of abusing his own sexual mesmerized were Americans by the au- sentative proportion of prison inmates and organs in bizarre and brutal ways, a prac- thority of science, with a capital S, that it sex offenders in a survey of normal sexual tice that led to his demise. Dr. Reisman took forty years for anyone to wonder how behavior,” and the Intercollegiate Review suggests that injuries sustained during his data is collected on the sexual responses of ranked Sexual Behavior in the Human masochistic activities — problems such as children.” But we don’t have to wonder. Male as the third worst book of the 20th “orchitis,” a swelling of the male genita- The “how” is known, and it marks Kin- century. lia — contributed significantly to his un- sey as one of our nation’s most despicable timely death from a heart attack in 1956 sexual criminals. Kinsey’s “Research”: A Labor of Lust (extreme abuse of that area can induce Kinsey had working relationships with But what motivated Kinsey’s descent into heart-stopping neurogenic shock). pedophiles — or, I should say, fellow pe- error? Sure, the study of sexuality cer- To complete the picture of Kinsey’s per- dophiles. These were men actively raping tainly wasn’t his field of expertise (there sonal justifications, however, we must ex- children. But instead of turning them over was no such discipline as “sexology” at amine his attraction to young boys, a per- to the authorities, Kinsey trained them to the time). Yet, as a biologist specializing in version that manifested itself at a tender measure and record the sexual “respons- www.TheNewAmerican.com 35
  • 37. HistoRy— Past and PERsPEctivE Newscom On the world stage, Kinsey serves as a director of deviance. he is shown here (dressed in black) arriving in Frankfurt, Germany, in 1955 as reporters flock around him. es” of their victims using stopwatches and may make violent attempts to avoid rape, encouraging him to continue his “re- and charts. The Kinsey Syndrome presents climax.” Kinsey called these responses search” and warning him to “watch out” airtight evidence for this, such as a 1992 “orgasms.” Dr. Reisman makes a very as- and avoid being caught by the law. In fact, interview in which Paul Gebhard revealed, tute point about this: what kind of person this correspondence was so outrageous “Most of it [the molestation] was done by would associate sobbing, screaming, vio- that the trial judge often railed against “the one individual … a man with some scien- lent resistance, and pain with sexual cli- strange American scholar.” And when the tific training … but not a … not a known max in children? The kind Kinsey was: a judge said that he got the impression that scientist. Uh, the other cases were done sadomasochistic pederast. the Nazi was trying to impress Kinsey by by parents at our suggestion. And … uh, Bear in mind, too, that this was financed delivering him material, Balluseck replied, let’s see … then there were some that were with tax dollars, as Kinsey received grants “Kinsey himself asked me for that.” (Bal- done by nursery school personnel.” Then, and paid his child rapists for their contri- luseck was convicted for the sexual abuse when asked if pedophiles normally run butions. And some of his innocence as- of dozens of children, including the little around with stopwatches, Gebhard replied sassins were truly prolific. There was Rex girl who was killed, but the killer’s identity that they do if “we tell them that we’re King, aka “Mr. Green,” who molested was never discovered.) interested in it.” Moreover, when asked more than 800 children and was trained The truth is that Kinsey, who would how the desired responses were achieved, by Kinsey’s mentor, Dr. Robert Dicken- tell his staff that “as scientists, they are Gebhard said by way of “oral and manual son. An even more odious character, if that not bound by bourgeois morality,” wasn’t techniques.” is possible, was Fritz von Balluseck, a Ge- bound by any morality. Wardell B. Pome- Yet, while these “researchers” were no stapo member who was the commandant roy, who co-authored Sexual Behavior in doubt highly skilled at their “techniques,” of an occupied Polish town during WWII. the Human Male, said, “Kinsey would how do you identify the response in ques- He molested hundreds of children while have done business with the devil if it tion in a young child? Kinsey answered in this position, telling them that it was helped the research — and this is true.” this on page 161 of Sexual Behavior in either him or the gas chambers (Reisman But, in reality, Kinsey consorted with the Human Male, writing that it “involves points out that they were all killed any- many devils. The Kinsey Syndrome tells still more violent convulsions of the whole way). After the war, he somehow escaped us that Pomeroy himself “wrote the book body … heavy breathing, groaning, sob- the hangman’s noose and continued his Boys and Sex, in which he actually pro- bing, or more violent cries, sometimes molestation in the shadows until he came moted the idea of boys having sex with with an abundance of tears (especially under investigation for the sexual murder animals, such as a dog, a horse or a bull.” among younger children).... Some males of a 10-year-old girl in 1956 and was ap- And in a different publication he wrote, experience excruciating pain and may prehended. During the course of his trial, “Incest between adults and younger chil- scream. The males in the present group … the authorities found letters from Kinsey dren can … prove to be a satisfying and en- will fight away from the partner [rapist] thanking Balluseck for his reports on child riching experience.” Then there is Kinsey 36 THE NEW AMERICAN • ApRIl 27, 2009
  • 38. photographer Clarence Tripp, who once schoolrooms throughout the nation and to sexualize children, and porn stoked the said quite emphatically, “child molesta- spread Kinsey’s philosophy. fires of man’s darkest urges, condition- tion. What is that? Nobody knows. Abuse The Kinsey Syndrome also makes the ing young minds with imagery of sex and of children? Are they talking about boxing case that Kinsey’s lies helped jump-start violence. The documentary even touches them against the ear or hitting them with a the porn industry and illustrates how porn on moral relativism, in so many words. stove pipe? Are they talking about tickling magazines’ use of images depicting mo- The spreading of this philosophy is a them a little? Are you talking about fon- lestation of and violence toward children significant factor because, since it sends dling? I hesitate to even call [Rex King] has desensitized many to those acts. In the message that what constitutes “evil” a pedophile.” There is the aforementioned fact, the documentary de- Paul Gebhard who, when explaining why votes much footage to the the Kinsey Institute refused to cooperate proliferation of such crimes with German authorities during the Bal- during the last few decades, We might think that Kinsey’s deviance luseck trial, said, “The poor pedophile … and Dr. Reisman asserts that would have landed him in prison. Instead, had his reputation destroyed.” Perhaps the worst (although there is stiff competition you can draw a “straight line” between this increased Kinsey’s newfound fame not only launched for that title) was notorious British Satanist incidence and Kinsey’s him onto the college lecture circuit, he also Aleister Crowley, whose sexual exploits handiwork. Simply put, the appeared in front of state legislatures and Kinsey seemed to admire. These included reduction in punishment things such as engaging in orgies with removed the stick, Kinsey- lobbied for a relaxing of sex-offender laws. women and their children and dismem- based sex education helped bering virgins at the completion of sexual congress. The bottom line is that Kinsey was not a scientist. He was the Marquis de Sade mafia don of child molestation, the dark hand that provided pedophile trig- ger men with a scientific justification to destroy souls. Defining Deviancy Downwards Yet the story gets worse. If we didn’t know better, we might think such deviance would have landed Kinsey in prison. Instead, the release of Sexual Behavior in the Human Female afforded him the opportunity to define deviancy downwards. Not only did Kinsey’s newfound fame launch him onto the college lecture circuit, he also appeared in front of state legislatures and lobbied for a relaxing of sex-offender laws. In fact, Dr. Reisman has a chart on which she has documented how Kinsey went from state to state convincing ingenuous legislators to dumb-down punishments for sex crime. The result was that the Model Penal Code issued in 1955 already reflected Kinsey’s pseudo-science, and between 1982 and 2000, the great legal database Westlaw had roughly 650 citations to Kinsey. Yet what is perhaps even more distress- ing is that Kinsey’s ideas imbue modern sex education. The Kinsey Syndrome speaks of how Sexual Behavior in the Human Male co-author Ward Pomeroy founded the In- stitute for the Advanced Study of Human rewriting the rules: Kinsey, shown here in 1953, would tell his staff that “as scientists, Sexuality in San Francisco. This institu- they are not bound by bourgeois morality.” he actually encouraged pedophiles to Newscom tion spawns sex educators — Ph.D.s, contribute information about their crimes to his research. Masters holders, etc. — who then enter www.TheNewAmerican.com 37
  • 39. HistoRy— Past and PERsPEctivE plains, the real struggle is exposing of the mafia dons of pedophilia died natu- the Kinsey con. Every time head- ral deaths without tasting prison. Angry Kinsey has certainly earned his infamy. way was made in this area, the ef- that academia and government were suf- He was a bad man, a twisted man, but fort was thwarted. This happened ficiently corrupt to facilitate their decep- to the Reece Committee in the tion and degradation. Angry that Kinsey he was only one man. What is truly sad 1950s — and to Dr. Reisman de- and his cohorts did manage to help reshape is that, even in the 1950s, America was cades later. As she told me when I America in their own sick, twisted image. questioned her for this piece, “The But if what the documentary evokes isn’t the kind of place where a Kinsey could FBI/DoJ coalition Task Force that righteous anger, I don’t know what it is. be a pied piper. Perhaps it wasn’t just was created to use my research to So Kinsey has certainly earned his in- white picket fences after all. help reverse child sex trafficking famy. Yet, when I ponder his war on vir- and pornography was spiked.... tue, I’m reminded of what the great an- The Rockefeller and Ford Foun- cient statesman Cicero said about Julius behavior is simply a matter of opinion, dations rushed to aid the Kinsey Institute, Caesar’s rending of the Roman Republic: it removes moral constraints that would with Gray & Co and other PR firms re- “Julius was always an ambitious villain, militate against doing evil. ceiving millions to assure my expurgation but he is only one man.” Kinsey was a Of course, many scoff at the idea that from future academic conferences and bad man, a twisted man, but he was only pornographic images influence people to university professorships and to kill the one man. What is truly sad is that, even in act wrongly, claiming that it’s much like 1995 federal investigation of Kinsey.” It’s the 1950s, America was the kind of place blaming society’s woes on television or a fascinating story that is still unfolding. where a Kinsey could be a pied piper. violent video games. But if such things And all this and much, much more is pre- Perhaps it wasn’t just white picket fences are meaningless, why do so many say that sented in The Kinsey Syndrome. after all. n we mustn’t broadcast programs such as I can issue a warning about the docu- Amos & Andy because they contain racial mentary, however. It made me angry. The Kinsey Syndrome is available for purchase at stereotypes? Or, to use The Kinsey Syn­ Angry that justice was denied and most www.KinseySyndrome.com. drome’s example, why do we take issue with the Nazis’ use of anti-Jewish imag- ery, the obscenely negative depictions of Jews designed to desensitize people to their persecution? If entertainment can- not influence minds, why trouble over such things? While everything discussed above would be enough for any documentary, The Kinsey Syndrome is especially pow- erful because it also looks at the less vis- ible dark hands in the Kinsey saga. It deals with the power of tax-exempt foundations, such as Rockefeller, which financed Kin- sey’s research and the Model Penal Code, and which, asserted the Reece Committee (a congressional body), aimed to destroy America’s Judeo-Christian foundation. It explains the link between Kinsey-trained sexologists and the Catholic Church sex scandal. It reveals that there are pedophiles in academia devising sex-education curri- cula even today — and it names names. And it illustrates how Kinsey helped ani- mate the homosexual-rights movement, quoting the leader of the North American Man/Boy Love Association as saying in 1981, “Gay liberationists in general, and boy lovers in particular, should know Kin- “The Shadow knows” was the answer to the old radio drama’s poignant question: sey’s work and hold it dear.... Implicit in “Who knows what evil lurks in the hearts of men?” Apparently Kinsey also knew, for Kinsey is the struggle we fight today.” even in 1950s America, when a happy family could safely stroll down almost any city street, he still found a following. But, as The Kinsey Syndrome also ex- 38 THE NEW AMERICAN • ApRIl 27, 2009
  • 40. Virtue is a choice. Make it a habit. Virtue • the moral excellence evident in my life as I consistently do what is right Sponsored by Putting Character First!®
  • 41. EXERCISING THE RIGHT “... the right of the people to keep and bear Arms, shall not be infringed.” Homeowner catches them. Fortunately for the woman and her when Sanders reached the front of the family, she was armed. building, he found a man burglarizing his Thieves in the Act Early on February 6, according to the business and demanded to know what he A Ferris, Texas, homeowner confirmed report published in the Tyler Morning Tele­ was doing. When the man refused to sur- February 1 that having a firearm can be graph, a courageous 31-year-old woman render, Sanders began firing at him. crucial to protecting your family and prop- heard several people enter her apartment. Assistant Chief Deputy Troy Graham, erty. The February 7 Waxahachie Daily Police reported in an official statement a spokesman for the Kaufman County Light reported that one burglar ended up that the woman heard the men force entry Sheriff’s Department, told reporters that in critical condition in a local hospital, through a rear door. Sanders hit the burglar several times. He while an accomplice who fled on foot is Locking herself and her children in a was found lying just outside the business. still on the run. bedroom, the woman retrieved a gun and The burglar, whose vehicle also contained Ellis County Sheriff Johnny Brown told waited. When the men tried to force entry stolen property from several other storage Dallas area TV4 that two thieves were sur- into the bedroom where she and the chil- units, was reported to be in stable condi- prised in the act of stealing property from dren had sought refuge, she fired through tion in a local hospital. a home the resident was in the process of the door. Investigations were underway, accord- vacating. Just before noon the man and his A total of three thieves were involved ing to Graham, though no arrest had been children arrived in front of the residence in the home invasion and theft, accord- made at the time of the last published and spotted some of their property in the ing to Tyler Police Department reports. report. The reports noted also that there suspects’ vehicle. When police arrived on the scene, they were no plans to charge Sanders with any As the resident exited his vehicle to found a 14-year-old suspect. After inter- crime. question the suspects, the crooks attempt- rogating the boy, officers were informed ed to flee the scene. In the process, the that another man outside the apartment stolen SUV the men were using in the rob- building where the attack occurred had Armed robber Killed by bery struck the resident and rammed his told witnesses he had been shot. When vehicle, with his children still inside. The they investigated, they discovered yet an- Quick-reacting Guard impact reportedly slightly injured both the other 14-year-old suspect with a wound After two robberies, one in 2006 and an- homeowner and his children. to his jaw. other in 2007, and a tip that they might “The homeowner opened fire on them The wounded boy was treated by fire be targeted for robbery again, the New at that point,” Sheriff Brown said. The in- department and emergency medical per- Smyrna Beach, Florida, Medicine Shoppe jured resident pulled a small caliber rifle sonnel and eventually was taken to a local Pharmacy recently hired a security guard. from his truck and fired several times at hospital. His condition was listed as stable MSNBC of Smyrna reported that on the SUV, striking the driver three times. as he was held under arrest for burglary February 7, the pharmacy’s caution was After the driver was hit, the stolen SUV and attempted assault. Additional charges justified when a masked armed robber ac- struck a third vehicle, which the resident’s were pending against the wounded thief costed the owner as he opened the store. wife had just exited, and came to a stop and the other suspects, according to later When the masked man entered the in a field. police reports. store, demanded drugs, and put a gun to “The passenger got out and ran. The The police spokesman told local media the head of the pharmacist, the guard re- driver-suspect was transported by air am- that no charges would be filed against the acted quickly, shooting the thief twice in bulance with gunshot wounds,” Brown unidentified woman. the chest. The unidentified robber died at reported. the scene. The sheriff’s office indicated no charges Though investigations by both the state would be filed against the resident. The Burglar Pays the Price for attorney and the Florida Department of wounded man is charged with assault, Law Enforcement are being conducted, grand theft auto, and residential burglary, refusing to Give up the police reported that the evidence and and is being held at the Ellis County Jail. Like many other Texans and Americans witnesses appear to support the guard’s across the nation, Robert Sanders believes actions. New Smyrna Beach Police Sgt. in being armed and ready to defend life Michael Brouillette stated: “The security Woman defends children and property. When, in the very early guard did what he had to do, and he pro- hours of February 6, he heard the noise tected the pharmacist.” When Intruders Persist of an intruder inside his storage area, a Despite the armed robber’s surprise at- Even after burglars entered her locked leased facility just in front of his residence tack, due to the swift reaction of the armed home, a Tyler, Texas, woman tried to avoid in Kaufman County, Texas, he retrieved a guard, both the pharmacist and the one conflict with the men, moving her children loaded rifle and went to investigate. store clerk present were uninjured. n into a bedroom and locking herself in with According to an account on WFAA TV, — AlAn scholl 40 THE NEW AMERICAN • ApRIl 27, 2009
  • 42. Printing and Spending Our Way to Prosperity iTem: An editorial entitled “The Federal Reserve acts boldly to ease credit condi­ tions” in the Seattle Times for March 20 commented: “The Federal Reserve deci­ sion to pump another trillion dollars [more precisely: $1.15 trillion] into the economy still has the capacity to raise eyebrows.” The “new money,” said the editors of the Seattle paper, “lowers interest rates for interbank transactions, and creates an incentive to loan money. The Fed is watching its balance sheets as it tries to use the sticks and carrots of a central bank to get lenders to put money into the economy. For as frightfully big as the numbers appear, this practice does not have to be inflationary, according to AP Images economic experts. There is time for the monetary policy to work its magic, and the Fed can reverse its policy in the fu­ ture. Or so it is hoped, because a move of Big-budget balderdash: The Obama administration is fond of saying that it “inherited” a $1.2 this scale enters new territory.” trillion deficit from George W. Bush. Apparently the fact that Obama was for Bush’s $700 billion correcTioN: If you have spent too much TARP spending and for Bush’s $167 billion stimulus package has been conveniently forgotten. money and accumulated too much debt, you’d be a fool to think the proper re- of the supposed rescue plan didn’t put it ing more money is the existence of sponse is to splurge even more on luxu- that way, but that is exactly what happens an unbalanced budget. Unbalanced ries and max out new credit cards that will when there is an expansion of the supply budgets are caused by extravagant drive you deeper into the hole. However, of money and credit — also known as expenditures which the government the central bank and the Obama adminis- inflation. is unwilling or unable to pay for by tration are doing just that — and doing it It really isn’t that complicated: when raising corresponding tax revenues. with our money. The president calls this you live beyond your means, there is still The excessive expenditures are main- the “new era of responsibility.” a bill to pay. Inflating the currency is theft, ly the result of government efforts to While the Fed was creating money out penalizing those who save and rewarding redistribute wealth and income — in of thin air, supposedly printing our way those in debt. And the government is the short, to force the productive to sup- to prosperity, the president was rolling largest debtor of all. port the unproductive.... out a mammoth budget of $3.8 trillion, Economist Henry Hazlitt, for one, ex- The causes of inflation are not, as with federal spending more than a third plained this about as simply as possible. so often said, “multiple and complex,” higher than last year’s adopted budget. In his “Inflation in One Page” in 1978, but simply the result of printing too The projected orgy of government expen- Hazlitt pointed out in part: much money. There is no such thing ditures and higher taxes will also result in as “cost-push” inflation. If, without an enormous deficit, dripping with about Inflation is an increase in the quantity an increase in the stock of money, $1.8 trillion in red ink, according to the of money and credit. Its chief conse- wages or other costs are forced up, Congressional Budget Office. This is the quence is soaring prices. Therefore and producers try to pass these costs alleged blueprint to spend our nation into inflation — if we misuse the term along by raising their selling prices, prosperity. to mean the rising prices themselves most of them will merely sell fewer Flooding the market with more than — is caused solely by printing more goods. The result will be reduced out- a trillion new dollars was called a bold money. For this the government’s put and loss of jobs. Higher costs can move in some quarters. In actuality, it was monetary policies are entirely re- only be passed along in higher selling a guarantee that today’s dollars will soon sponsible.... prices when consumers have more be worth less. Of course, the designers The most frequent reason for print- money to pay the higher prices.... www.TheNewAmerican.com 41
  • 43. Prolonged inflation never “stimu- lates” the economy. On the contrary, it unbalances, disrupts, and misdi- rects production and employment. The inflationary theft is taking place in full public view. Overnight, the Fed’s bal- ance sheet grew by about $1.15 trillion, making it about 50 percent larger than it was the day before. As noted by Commen­ tary’s Francis Cianfrocca, “That’s a scary amount of inflation.” As a reward for its misdeeds and in re- turn for a promise that we will avoid eco- nomic catastrophes in the future, the Fed now wants to be granted even more pow- ers. Any similarity to a criminal protection racket is no accident. As the Associated Press said, baldly if blandly: “The Federal Reserve should play an expanded, ‘central role’ in preventing future financial crises like the one now gripping the country, the U.S. central bank and the Treasury De- partment said today. The joint statement from the agencies now leading the United States’ efforts to end the crisis and lift The late economics professor Murray more than doubled in about a year — from the country out of recession came as the Rothbard recounted in The Case Against $800 billion to $1.7 trillion. A prime rea- Obama administration and Congress seek the Fed: son for all this extraordinary activity is that to overhaul the nation’s financial structure there is said to be a “credit crunch.” Not to avoid future meltdowns.” Central Banking, in short, was de- quite. Credit may be tight, said Investor’s Over the previous five months, the Fed signed to “do for” the banks what the Business Daily on March 19, but it “isn’t had already expanded the money supply ICC had “done for” the railroads, the close to being in a crunch. Consumer and by about 270 percent and the economy Meat Inspection Act had done for the business loans are running 7.7% ahead of was still tanking. So it upped the dose, in big meatpackers, etc. In the case of last year, and total commercial bank lend- much the same way that the Obama ad- Central Banking, the Line that had to ing is up about 4.8%.” ministration heaped on more profligate be pushed was a variant of the “anti- Meanwhile, Barack Obama is mak- spending than its predecessor. What didn’t Big Business” shell game being per- ing big spender George Bush look like a work yesterday won’t work tomorrow ei- petrated on behalf of Big Business cheapskate. President Obama promised ther, but if the Fed gets its way, it will have throughout the Progressive Era. In that his budget, as Brian Riedl of the even more power in the future. banking, the line was that a Central Heritage Foundation recalled, “would Keep in mind that the Fed was suppos- Bank was necessary to curb the in- confront the ‘hard choices’ that President edly created in 1913 to protect us from flationary excesses of unregulated Bush had avoided by relying on budget booms and busts, only to have those banks on the free market. And if Big deficits. Then he offered a budget that booms and busts turn out to be longer Bankers were rather conspicuous and would create as much government debt as and deeper than before its creation. The early in advocating such a measure, every other president from George Wash- Fed’s creation was supposedly opposed why this only showed that they were ington to George W. Bush — combined.... by many bankers in much the same way more educated, more Enlightened, President Bush’s spending spree expand- that so many government entities and reg- and more nobly public-spirited than ed government by $700 billion. President ulatory agencies have been established — the rest of their banking brethren. Obama’s budget would expand govern- through deceit. It was a version of the tale ment by $1 trillion (not even counting the of Br’er Rabbit, who conned his way into The Fed’s latest inflationary campaign is stimulus).” being thrown into the briar patch, where stunning. Even before its recent infusion As huge as the announced Obama bud- he was safe. of greenbacks, the money stock (M1) had get figures are, they are dwarfed by more 42 THE NEW AMERICAN • ApRIl 27, 2009
  • 44. The M&M realistic projections by the Congressional Budget Office, which don’t downplay the probable spending totals and exaggerate ing, the highest EVER. Under the Obama budget, the Congressional Budget Office (CBO) Company economic growth the way the adminis- projects that the national debt will of the South LLC tration did with its estimates. The CBO’s more than double over the next 10 figures indicate that the White House years from 40% of GDP today to a low-balled its deficit figures by about shocking 82%! offers you a $2.3 trillion over a decade. There really is a piper to pay when you spend money you don’t have. The CBO estimates that, Payment for all of this profligacy will come via higher taxes and more infla- free SaMpLe by the end of the next decade, it will cost tion, with the administration spending as of the finest hand more than $800 billion annually just to service the debt. if there were no tomorrow and the Fed churning out money to buy Treasury bonds cleaner you’ll ever use! Even as he was breaking the prover- that will make the bill even bigger when bial bank and, in essence, impoverish- that tomorrow does come. ing our children, the president employed This fits the time-tested prescription some verbal sleight of hand by impugning George W. Bush’s fiscal irresponsibility for debauching the currency, a term em- ployed by socialist economist John May- Sno White (who certainly deserves blame) and say- ing that his administration is “doing every- nard Keynes almost a century ago. Keynes wrote in The Economic Consequences of Hand Cleaner thing we can to reduce that deficit.” This the Peace: “Lenin is said to have declared Sold nationwide for audacity is breathtaking. As pointed out by that the best way to destroy the capitalist personal, professional and Peter Ferrara of the Institute for Policy In- system was to debauch the currency. By novation, the deficits a continuing process of inflation, govern- industrial use. ments can confiscate, secretly and unob- over the next 10 years that Obama served, an important part of the wealth proposed in his budget are not of their citizens. By this method they not George Bush’s deficits. They are the only confiscate, but they confiscate arbi- Call us at deficits that Obama has proposed, trarily; and, while the process impover- resulting from the $1 trillion in in- ishes many, it actually enriches some.... (800) 344-9927 creased spending he adopted in the Lenin was certainly right. There is no no-stimulus stimulus bill, and the subtler, no surer means of overturning the for your free sample. $400 billion supplemental spending existing basis of society than to debauch bill he supported and also adopted the the currency. The process engages all the (No charge of any kind) following week, and the $275 billion hidden forces of economic law on the side housing bailout he proposed the next of destruction, and does it in a manner week, and the $1 trillion bank bailout which not one man in a million is able to plan his Treasury Secretary just pro- diagnose.” P.O. Box 73445 posed this week, and the $638 billion All of which would be bad enough, but he has proposed as a “downpayment” these economic atrocities are being com- Metairie, LA 70033 on a new national health insurance mitted in the name of policies that turn lan- Fax: (504) 466-2181 entitlement. The health insurance guage and logic upside down. These mas- plan will be the most expensive en- sive increases in debt are being incurred mandm6@earthlink.net titlement of all — serious estimates and spending and taxing are being piled are that it will cost at least $1.2 tril- on during a recession, which is bound to lion or more. Does this sound like he make recovery longer and harder. is “doing everything we can to reduce Yet, President Obama asserts that his that deficit?” budget will “lead to broad economic The budget Obama proposes for growth by moving from an era of borrow this year increases federal spending and spend to one where we save and in- by a fiscally insane 34% over the vest.” Even the sly Br’er Rabbit wouldn’t budget adopted for last year, with a dare to concoct a whopper like that. n total of $4 trillion in federal spend- — williAm P. hoAR Distributors of fine hand cleaners & related products since 1942 www.TheNewAmerican.com
  • 45. THE LAST WOrd by gARy benoit Obama Wants “Stronger, Global Regime” F rom the point of to Iran’s neighbors and our view of selling nu- allies.” clear disarmament Nations, Obama under- to a world concerned about stands, will not disarm in a international terrorism and vacuum. The nuclear genie rogue states, the timing of is not going to be put back North Korea’s test-firing in the bottle again, as he of a missile could not have acknowledged regarding worked out better for Presi- the peaceful use of nuclear dent Barack Obama. The power: “We should build missile was fired on Sun- a new framework for civil day, April 5, and the presi- nuclear cooperation, in- dent was scheduled to give cluding an international a major speech in Prague fuel bank, so that countries later that very day to call for can access peaceful power “a world without nuclear without increasing the risks weapons.” of proliferation.” Naturally, Obama’s Obama’s call for “a world speech was quickly updated without nuclear weapons” is to capitalize on North Korea’s action. And just as naturally, the therefore predicated on global policing to counter and eliminate fact that North Korea does not have a nuclear weapon (the rocket threats and potential threats from terrorists and rogue nations. reportedly carried a satellite) and is technologically backward “We should come together to turn efforts such as the Prolifera- (the test firing was not a success) were downplayed in a media tion Security Initiative and the Global Initiative to Combat Nu- frenzy that portrayed the launch as a crisis. clear Terrorism into durable international institutions,” he said. “We go forward with no illusions,” the president said regard- “And we should start by having a Global Summit on Nuclear ing his proposal for nuclear disarmament. “Some will break the Security that the United States will host within the next year.” rules, but that is why we need a structure in place that ensures Obama’s grandiose vision for a world without nuclear weap- that when any nation does, they will face consequences.” He ons reminds this writer of Freedom From War (State Department then added regarding North Korea’s missile launch: Publication 7277), the 1961 three-stage disarmament proposal President John F. Kennedy submitted to the United Nations. The This morning, we were reminded again why we need a new third stage of the plan states that “progressive controlled disar- and more rigorous approach to address this threat. North mament and continuously developing principles and procedures Korea broke the rules once more by testing a rocket that of international law would proceed to a point where no state could be used for a long-range missile. would have the military power to challenge the progressively This provocation underscores the need for action — strengthened U.N. Peace Force.” not just this afternoon at the UN Security Council, but in Obama did not say anything in his Prague speech about a our determination to prevent the spread of these weapons. “strengthened U.N. Peace Force,” but he did call for strength- Rules must be binding. Violations must be punished. Words ening NATO, a “regional arrangement” of the kind described in must mean something. The world must stand together to Chapter VIII of the UN Charter. prevent the spread of these weapons. Now is the time for a Obama envisions an expanded role for NATO, perhaps recog- strong international response. North Korea must know that nizing that Americans might be more willing to support inter- the path to security and respect will never come through national military efforts if they’re carried out under NATO than threats and illegal weapons. And all nations must come to- directly under the UN — though that could change in the future. gether to build a stronger, global regime. “No alliance can afford to stand still,” Obama said of NATO in Prague. “We must work together as NATO members so that we Obviously, Obama intends to exploit the North Korean provo- have contingency plans in place to deal with new threats, wher- cation to build the “stronger, global regime” he envisions. And ever they may come from. We must strengthen our cooperation not just North Korea. In his Prague speech, the president also with one another, and with other nations and institutions around pointed to Iran as another potential nuclear threat. Though ac- the world, to confront dangers that recognize no borders.” knowledging that “Iran has yet to build a nuclear weapon,” he Those dangers include the nuclear threat, and Obama’s solu- also stated: “Let me be clear: Iran’s nuclear and ballistic missile tion — a “stronger, global regime” to police the world — will activity poses a real threat, not just to the United States, but perhaps become more obvious as details become available. n 44 THE NEW AMERICAN • ApRIl 27, 2009
  • 46. POwer & Money NEW Dollars & $ense Dollars & $ense Booklet Dollars & $ense, by John F. McManus, is an excellent tool An excellent supplement to the accompanying DVD, for teaching Americans about the nature of money and this booklet delves deeper into the details of the how to solve inflation. Given the current economic crisis, economic meltdown. It explains the causes, offers it is a must-see! (2008, 42min, DVD: 1/$1.00; 25/$20.00; real-world solutions, and is a must-have for anyone 50/$37.50; 100/$70.00) dVddAS interested in returning our country to sound mon- etary principles. (2009, 40pp, pb, 1/$2.95; 10/$2.00; The Law 25/$1.50; 50/$1.00; 100+/$0.75) BKLTdAS This classic exposé of socialism and communism as “law- ful plunder” explains the fundamental principles involved The Road to Socialism in determining the proper scope of government. Written Author Dennis L. Cuddy effectively presents potent at the time of the revolutions of 1848, it explains the quotes from key theoreticians, architects, and tech- socialist fallacies of that age and those that are widespread nocrats of one-worldism revealing their designs. now in our country. (2007ed, 74pp, pb, $4.95) BKL (2008ed, 144pp, pb, $9.95) BKRTS The Shadows of Power 1984 Author James Perloff exposes the subversive roots and glo- The nightmarish world of the foreseeable future is balist designs of the Council on Foreign Relations (CFR). described in horrifying and realistic detail, a time Passed off as a think-tank, this group is the “power behind when the state reigns supreme and the words “indi- the throne,” with hundreds of top government officials vidualism” and “dignity” are nowhere to be found in drawn from its ranks. The book traces CFR activity from the “politically correct” vocabulary of “newspeak.” the Wilson to Reagan administrations. (2008ed, 272pp, Originally published in 1949. (1981ed, 328pp, pb, pb, $10.95) SOP $8.95) 1984 Man, Freedom, & Government The Creature From Jekyll Island This enhanced video remake of Ezra Taft Benson’s 1968 Want to know how money is used — and misused filmstrip classic provides a roadmap for restoring our — by those in power? In The Creature From Jekyll freedoms and protecting our rights through creating Island, author G. Edward Griffin unmasks the secrets sufficient understanding of the principles enshrined in behind the manipulation of our nation’s money sup- our nation’s founding documents. (2005, 24min, DVD: ply by providing an insider’s look at how the Federal $5.95) dVdMFg (Public Service Edition, DVD: 1/$1.00; Reserve came into being and how it controls the value 2-10/$0.90 ea; 11-20/$0.80 ea; 21-100/$0.75 ea; 101- of the dollar. Wondering why we’re in such economic 999/$0.70 ea; 1000+/$0.64 ea) dVdMFgPS trouble? (2009ed, 608pp, pb, $22.95) CFJI ✁ QuAnTITy TITlE PrICE ToTAl PrICE Name ______________________________________________________________ Address ____________________________________________________________ City _____________________________ State __________ Zip ________________ Phone ____________________________ E-mail ______________________________ ❑ Check ❑ ViSA ❑ Discover 000 0000 000 000 0000 0000 0000 0000 0000 ❑ Money Order ❑ MasterCard ❑ American Express VISA/MC/Discover Three Digit V-Code American Express Four Digit V-Code SUBTOTAL WI ReSIdenTS Add 5% SALeS TAx SHIPPIng/HAndLIng (See CHART BeLOW) TOTAL Make checks payable to: ShopJBS ___ ___ ___ ___ ___ ___ ___ # _________________________________________ Exp. Date ________________ For shipments outside the U.S., please call for rates. Signature ___________________________________________________________ Order Subtotal Standard Shipping Rush Shipping $0-10.99 $4.95 $9.95 Standard: 4-14 Mail completed form to: $11.00-19.99 $7.75 $12.75 business days. ShopJBS • P.O. BOX 8040 $20.00-49.99 $9.95 $14.95 Rush: 3-7 business APPLETON, WI 54912 $50.00-99.99 $13.75 $18.75 days, no P.O. Boxes, HI/AK add $10.00 Order Online: www.shopjbs.org 1-800-342-6491 $100.00-149.99 $15.95 $20.95 $150.00+ call call Credit-card orders call toll-free now! 090427
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