Half Truth

By Ferrukh Mir

Half Truth is an endeavor to portray the real picture of todays burning and bleeding Afghanistan. It unveils the hidden faces and ruthless powerful forces behind this exclusive global tragedy. It reveals, how Afghanistan was turned into a battlefield in mid seventies, using highly emotional religious slogan (Jihad) as a deceptive net and a Machiavellian tool, to organize an international anti- communism front to destroy the USSR. Half Truth unveils, how in post USSR era, once again same forces chose Afghanistan as a center stage, to advance their hidden agenda of capturing the vast natural energy resources and precious metals of the Central Asia, Caspian, Afghanistan, Pakistan and Middle East. It exposes, evil covert plans, and objectives of intriguing forces, which created Taliban, Osama and Al-Qaeda. It reveals, how stannic concept of so called Islamic Terrorism was crafted, and later on used as a poisonous propaganda tool through global corporate media ,to terrify the common public in the US and West. Half truth unveils the reality, how intriguing forces engineered the terrorist attacks, which eventually appeared in the shape of Sep11, 2001 terrorist attacks. It also unveils, how ill-fate Afghanistan was over -run by US led NATO alliance, using evil slogans of so called Islamic terrorism and war on terror. Half Truth exposes , US led NATO alliance failures, in building the oil and gas pipelines inside the Afghanistan during last nine years, for which, occupied forces have killed tens of thousands of innocent Afghans, using worlds most lethal weaponry, writing a new page of modern barbarism. It also explains how these greedy forces have turned world economic superpower; the US into world biggest debtor nation, endangering its future.

Half Truth exposes the highest level of frustration, among US rulers, due to their failures in Afghanistan and warns about catastrophic outcome of bloodshed in Afghanistan and Pakistan: a global fl ash point. It also warns about horrible socio-economic impacts on US society in particular and global community in general if this war without end continues for next five years.

Half Truth invites all the peace loving forces within the US and around the globe to join hands to block the evil warring forces, to bring back the world peace by cooling down the Afghanistan hell by nurturing the lofty traditions of inter-faith harmony and mutual co existence for better and brighter future of the mankind.

• Language: English
• Publisher: iUniverse
• Release date: Mar 10, 2011
• ISBN: 9781450286459

Ferrukh Mir

Author have been teaching as an Asst Prof in University of Engineering and Technology, Lahore ,Pakistan for 15 years .Apart from teaching Engineering ,author have great interests in internal affairs ,particulary Afghanistan being a next door neighbor of Pakistan since 1979. Auther is also post grad of University of Alberta Canada and is now living in Canada

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Copyright © 2011 by Ferrukh Mir

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ISBN: 978-1-4502-8644-2 (sc)

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Printed in the United States of America

iUniverse rev. date: 03/3/2011

Dedication

Half Truth is dedicated to beloved mother: Mukhtar Begum (School Teacher) and father: Mir Abdur Rehman (Science Teacher). Especially to great mother, a lighthouse, who always taught us the lesson of honesty and courage, while discharging her lofty dual role as a brave mother and upright father. While leading and feeding her family of five kids within limited financial resources, she never compromised the honesty. She started playing her very challenging role at the age of 35 after the death of our father at the age of 44. She is an exclusive fragrance, which helped me to sense the pains and miseries of Afghan mothers and motivated me to awake the world conscious.

Introduction

The US has been in a recession since December 2007. This was an official announcement /warning about a prospective economic tsunami, released on December 1, 2008 by the US National Bureau of Economic and Research (NBER), which later on swept away global financial centers, leaving behind a wrecked economic structure. Just after NBER’s announcement, it started blinking red everywhere in global financial markets. Stocks of major multinational companies plunged at their historic low since the economic depression of 1930.Consequently, US as well as global financial markets, started collapsing. The US national debt had crossed the sensitive level of 75 percent of its GDP. This was a historic day in US history, because a visionary; Takeo Miura’s (CEO of Hitachi Corporation Japan) 1988 prediction of US economic decline was turning into reality.

The sky came crashing down on the banking sector in 2008. As the complex world of collateralized debt obligations from the murky depths of the US subprime collapsed in on it, the bad debts started to mount and some of the biggest names in the financial sector were brought to their knees. US mortgage giants Freddie Mac and Fannie Mae, along with insurance behemoth AIG were forced to seek shelter under the wings of the US Government. Wall Street waved goodbye to its investment banking model, with Bear Stearns sold off for $2 a share, Lehman Brothers collapsing, Merrill Lynch forced to sell itself off to Bank of America and Goldman Sachs and Morgan Stanley becoming traditional bank holding companies. Meanwhile, Washington Mutual was seized by the Federal Deposit Insurance Corporation.

A series of aftershocks collapsed many medium and small banks. A whopping 24 entities went out of business in July, the highest for any month in 2009. On an average, 10 banks collapsed every single month. Economic meltdown and chaos brought fourth many typical whys and how for all concerned at every level within the US and abroad. The emerging scenario poses a question, which is why is there so much complaining about the 2008 recession? Recession is actually considered an integral part of capitalist economic culture. Financial experts and political analysts have solid grounds to explain the whys and how related to 2008 global recession and the forces behind this global economic calamity. The majority of analysts have unanimously pointed their fingers towards the White House as an epicenter of the economic crises in the US.

NBER’s timings of its announcement sound deliberately political and tactical, rather than technical. It seems the Bush-Cheney administration deliberately blocked the timely announcement of the recession to avoid public wrath. The public was already struggling hard to cope with the economic hardships of their personal lives due to the disastrous economic policies of Bush regime. The Bush administration had been taking different rescuing measures for the recovery of the ailing banking industry from crisis, but every quick fix failed to bring back life to ailing financial institutions.

The roots of the US financial crisis can be traced from domestic as well as international policies of Bush-Cheney regime. On one hand, their failed domestic fiscal policies had laid down the foundations of the mortgage crisis. On the other hand the fatal decisions of waging two very expansive wars in Iraq and Afghanistan cultivated the seed for deficit financing. Planned increase in defense spending, dwindling exports and escalating import bills raised the level of America’s current amount of deficit. The Bush’s economic managers resorted in short terms measures, such as borrowing money. Escalating foreign debts started disturbing the US fiscal balance. These fundamental factors, and economic mismanagement, kick started the process of economic downturn in the US, which eventually ended with a global recession.

There is some consensus among political analysts that Bush’s decision to invade Iraq was a historical blunder. These writers have further proven that behind the Iraqi war blunder, the Bush-Cheney gang of rightwing neo-cons had a long-standing hidden agenda of capturing Iraq to control its oil wealth to paint the colors in the map of their dreams world. Domestic policies of Bush administration have been exclusively described as an authoritarian and dictatorial to crush the human rights and civil liberties of US public to advance its fascist agenda by creating an environment of fear by propagating the threats of terrorist attacks from the Al-Qaeda-Saddam alliance against the US.

Surprisingly, none of the writers have discussed the merits and demerits of Bush-Cheney administration’s fatal decision of invading Afghanistan. Instead they have just touched this very important topic briefly and informally. Is this not unfair? If Bush’s decision of invading Afghanistan was another blunder, then it should have been treated at par to Iraqi case. On the contrary, if the Bush-Cheney decision of invading Afghanistan was a right move, then the world should have been told about its merits. Then, the global community could figure out the divine wisdom of the Bush, for which he has tall claims.

Apart from the majority of writers, only a single political commentary has appeared in literary circles under the title: The Assault on Reason, which has comparatively given higher marks to Bush’s decisions of invading Afghanistan. The writer has not only supported Bush’s decision of invading Afghanistan, but has strongly criticized the Bush administration for not treating the Afghan war at par to Iraq. The Assault on Reason primarily sounds a sad street folk song of US societal decline. This political analysis portrays a fractured image of the US, being a superpower which has lost its moral authority as a result of failed policies of Bush-Cheney’s regime. The most interesting feature of this sad song (The Assault on Reason) is that it is not sung by any street singer, but is sung by a member of a US ruling elite and former Vice President of Clinton administration: Al Gore.

Al Gore, like many other writers, has discussed in detail the domestic as well as international policies of the Bush–Cheney regime. He has emerged as a harsh critic of Bush’s regime. He has discussed the failed policies of this regime step by step and has precisely targeted its policies of assaulting and crushing the individual, as well as the collective liberties of common Americans. He has not only criticized this, but proves categorically how unusually Bush empowered the US spy agencies to interfere into private and personal lives of common US citizens to obtain any information necessary for the state to protect the country’s security against terrorist threats. He has used blistering remarks about Cheney, for his acts of advocating and defending Bush’s regime policies of eavesdropping on American citizens. He also seems frustrated about blocking public access to government websites for obtaining information about government policies.

Al Gore has tried to portray himself a great advocate of human rights and civil liberties, and has exclusively given a surgical treatment to Bush’s policies of empowering US secret agencies, especially the CIA for running secret prisons in different parts of the world, including its secret prisons in Iraq and Afghanistan. In these prisons, detainees have been subjected to severe torture of investigators to gather secret information. He has particularly provided the details of many such accounts to support his claims. He claims that many innocents were tortured brutally by CIA investigators, grossly violating the human rights charter of the U.N.

Al Gore has supported Bush’s decision of invading Afghanistan. While elaborating on historical background of the USSR’s intervention in Afghanistan in the late seventies, he admires the US decision of supporting and backing the resistance movement in Afghanistan during the Afghan war of the 1980s. But he regrets that US left Afghanistan alone and didn’t help Afghanis to rebuild their war trodden country after Russian withdrawal. According to Al Gore, Afghanistan eventually became the hub of terrorist activities of Al-Qaeda and Taliban, where Al-Qaeda had been planning the terrorist attacks of 9/11. Al Gore has not only supported the Bush-Cheney decision of invading Afghanistan, but regrets that Bush did not properly focus his attention on Afghanistan, as it deserved, after the US invasion in Oct. 2001. He seems frustrated over the Bush government’s campaign of linking 9/11 attacks as a joint venture of Al-Qaeda and Saddam and eventually using the attacks as a pretext for invading Iraq.

The most unfortunate aspect of Al Gore’s commentary is the absence of solid documentary evidences of Al-Qaeda and Taliban involvement in 9/11 terrorist attacks. He has been promoting the Bush regime idea of Al-Qaeda and Taliban involvement in the 9/11 terrorist attacks as rhetoric, like a street singer. Al Gore was duty bound to tell the world a complete truth with solid proof and evidence to establish the authenticity of his claims, like he has told the world, in the case of Iraq. What he has presented as evidence, is nothing more than routine rhetoric’s of the top brass of the secret agencies, like the CIA to please their bosses: Clinton and Al Gore.

Being an insider of the ruling elite, Al Gore could speak truth to explain the Afghanistan issue, but he didn’t portray the true picture of the case with solid evidence, why? What were his limitations? Why, he has hidden the reality. If he could blast the Bush regime’s decision of invading Iraq, likewise he was bound to speak the truth, with logical scientific evidence, so that the world could know the full truth and US justification of invading Afghanistan.

Al Gore was the presidential nominee for Democrats in the 2000 US election against Bush, but lost the election. Before contesting the election, he was the US Vice-President during the Clinton administration from 1993-2001. His dual standards of treating two equally important US decisions of invading two different countries unfairly have created doubts over Al Gore credibility. It seems Al Gore has deliberately been hiding the half truth about Afghanistan.

From 2001-2009, many things have changed and new realities have emerged from the ashes of WTC towers. Public opinion in the US, as well as around the globe, has changed about the reality of the 9/11 attacks. What has been propagated by the US ruling elite (Republicans and Democrats) for the last eight years about the reality of 9/11 terrorist attacks have lost its meanings.

Al Gore has not bothered to answer many typical and strategically important questions in his book, which are common topics of discussion around the globe among researchers, scholars and truth seekers to solve the mysteries surrounding the 9/11 terrorist attacks, and the subsequent US invasion of Afghanistan. If Al-Qaeda was responsible for the 9/11terrorist attacks and Taliban were father figure for Al-Qaeda, then Al Gore should have explained the following questions to establish his credibility:

1-Why did the Clinton-Gore administration accept the Taliban as a legitimate Afghan ruler officially in 1996?

2-Wasn’t the main conflict between US and Taliban during the Clinton-Gore regime over the central Asian oil and gas pipeline royalties?

3-Wasn’t Osama bin Laden’s power a joint creation of the CIA and Saudi intelligence agencies during the Afghanistan war of the 1980s?

4-Is this not reality that Clinton’s administration missed golden opportunities to kill Osama in Sudan and Afghanistan?

5-Why did the Clinton administration fail to dismantle alleged, but very visible Al-Qaeda network (financial and militant) inside the US?

6-Why did the Bush administration not bother to act, not even once, against Al-Qaeda during its first eight month prior to 9/11 attacks?

7-If the Taliban were guardians of the mother of problems (Al-Qaeda terrorism),Why did the Bush administration secretly engage the Taliban in negotiations for eight months on central Asian oil and gas pipeline royalty issues?

8-Why did the Bush administration turn down the offer of the Taliban for handing over Osama to the US?

9-Why did Bush (personally) and his team fail to listen the warnings of alleged terrorist attacks on the US by the C.I.A.?

10-Were 9/11 attacks, really designed and executed by the Al-Qaeda?

11- Who were really responsible for 9/11 attacks?

12-Weren’t 9/11 terrorist attacks a pretext, used as a cover story by the Bush administration to invade Afghanistan?

13-What were the real goals behind America’s invasion of Afghanistan?

14- Does the United States government truly want to bring peace, harmony, and democracy to Afghanistan?

15-Are Democrats not equally responsible like Republicans for America’s decline as a superpower?

Half Truth is an endeavor to unveil the truth about the Afghanistan war tragedy by exploring the answers about the above mentioned questions in historical perspective, logically and scientifically, which should have explicitly been explained by Al Gore: a self acclaimed champion of civil liberties and advocate of logic and reasoning. Then the world could know the reality and US justification for invading Afghanistan and slaughtering poor Afghanis, with the world’s most lethal weaponry.

Half Truth is an endeavor to strengthen the global forces of peace against evil warring forces. It is an endeavor to promote global harmony among different faiths. It is an endeavor to promote the idea of mutual co-existence and tolerance to create a peaceful world to save mankind from the miseries of man-made catastrophes. It is an attempt to awaken the world’s consciousness about the miseries of unfortunate Afghans, who have been passing their painful days and sleepless nights for last three decades on the rubble of their mud homes and dusty streets. Ill fated Afghans have sacrificed millions of their loved ones, first, fighting against USSR’s occupation of Afghanistan and now against the US occupation of Afghanistan for the last decade to protect their national independence.

Contents

Part 1

America’s March toward Global Domination

1. Corporate America

2. The US on Road to Cold War

3. Intellectual Foundations of the Afghan war of 1980

d. Neoconservative Movement

e. Notional Background of Anti Soviet US Afghan Policy in Mid Seventies

f. Neo-Cons Intellectual Adventures for designing future US’ Anti-USSR Foreign Policy

7. Afghan War Theatre of 1980

h. CIA level initial planning and Spade work

i. US-CIA Strategic Planning of war

j. US-CIA Monetary planning of War

k. US-CIA money laundering network

l. Military Training

m. Military planning and intelligence sharing

Part 2

Uni-Polar World

14. Bush Dynasty Part-I

15. Bill Clinton Era

p. US Corporate maneuvers to capture the rights of Central Asian oil reservoirs

q. Central Asian Oil and Gas transportation Issue

r. The US and Taliban

s. Entry of a New Character: Osama bin laden on Grand Chess Board

t. Clinton administration’s Political summersault

21. Bush Dynasty (Oil and Gas Mafia) Rule Part II

Part 3

A Journey to Disillusionment to Unfold the Mystery of Sept. 11 Terrorist Attacks and Subsequent US Invasion of Afghanistan

22. Journey of Disillusionment Part I

w. Clinton Era & US intelligence underground spy circus

24. Disillusionment Part –II

y. Bush administration and CIA underground Spy Circus

26. Disillusion mention Part -III

aa. Bush-Cheney and Clinton-Gore claims that Al-Qaeda-Taliban alliance was responsible for 9/11 Terrorist Attacks

28. Journey of Disillusionment IV

ac. Who were the game planners, how they did?

Part 4

Mega Opening of WWIII Phase II

30. US’ Invasion of Afghanistan in 2001

31. Democrats Hypocrisy, and Role

during and post Cold War

32. US Economic Health in 2009 as a

Result of Iraq and Afghanistan Wars

33. Future Possibilities in Afghanistan

Appendices

References

Part 1

America’s March toward Global Domination

 Chapter-1

Corporate America

Brief History of industrialization

Before the nineteenth century, migration from the Old World (primarily Europe) to the New World (US, Canada, Australia, and Argentina) went through three stages: the 1600-1700

Slave and contract labor era, the 1790-1850 free settlers’ era and the 1850-1920 mass migration era. It is estimated that over a million people immigrated annually to North America during the period of 1880-1910[1].

The United States emerged from the War of 1812 in a chaotic L-monetary state, with banks multiplying and inflating ad lib, checked only by the varying rates of depreciation of their notes. With banks freed from redeeming their obligations in specie, the number of incorporated banks increased during 1816, from 212 to 232. Clearly, the nation could not continue indefinitely with the issue of fiat money in the hands of discordant sets of individual banks. It was apparent that there were two ways out of the problem: one was the hard-money path, which was advocated by the Old Republicans and, for their own purposes, the Federalists.

The federal and state governments would have sternly compelled the rollicking banks to redeem promptly in specie, and, when most of the banks outside of New England could not force them to liquidate. In that way the mass of depreciated and inflated notes and deposits would have been swiftly liquidated and money would have poured back out of hoards and into the country‘s circulation.

In the wake of the Industrial Revolution during the 1830s and beyond, the mercantile community increasingly came under pressure, especially from a newly emerging group of powerful artisans-turned-manufacturers and an ever more mobilized and enfranchised populace. Most significantly, the mercantile elite faced a challenge from a rising industrialist class. These men had accumulated capital in novel ways, and largely outside the older kinship and social networks of the northern mercantile elite. By the 1840s, they were showing up in the higher ranks of the tax rolls at a remarkable rate. The majority of manufacturers were artisans who had expanded their shops and transformed themselves into entrepreneurs. As one historian observed, by mid-century they were knocking at the doors of political power and social prestige so long guarded by their commercial brethren.

The US was the major recipient of immigrants. During the mass migration period of 1850-1920, a large number of business and skilled workers migrated to the US and were key participants in the process of industrialization and the second Industrial Revolution of 1890.The Industrial Revolution came late to the United States compared to England. But once it came, it arrived vigorously. As elsewhere, cotton spinning expanded first as merchants invested some of their capital in spinning mills built along the fast-flowing rivers of New England and the Mid-Atlantic States. After 1830, railroads began crisscrossing the United States, devouring fabulous amounts of capital and eventually spurring the growth of coal mining, along with iron and steel production.

Most of the US manufacturing was in 1880s and 1890s, contained within a narrow belt that extended from New England, south through Pennsylvania, and west through Ohio and parts of the upper Midwest. Outside this manufacturing belt a large and increasingly vocal segment of the population in the prairie and Southern states was convinced that it was being robbed of its rightful share of the nation’s newfound wealth by Eastern capitalists who controlled the nation’s railroads and set its monetary policy.

With the second Industrial Revolution in 1896, The Democratic Party was no longer the party of Jefferson, Jackson, and Cleveland. With no further political embodiment for laissez-faire in existence, and with both parties offering an echo not a choice, public interest in politics steadily declined. A power vacuum was left in American politics for the new corporate static ideology of progressivism, which swept both parties (and created a short-lived Progressive Party) in America after 1900. The Progressive Era of 1900-1918 fastened a welfare-warfare state onto America which has set the mold for the rest of the twentieth century. States arrived after 1900 not because of inflation or deflation, but because a unique set of conditions had destroyed the Democrats as a laissez-faire party and left a power vacuum for the triumph of the new ideology of compulsory cartelization through a partnership of big government, business, unions, technocrats, and intellectuals.[2]

The second Industrial Revolution of 1890 helped transform America into a globally renewed nation and an economic power. As a result, new industrial elite emerged in the socioeconomic landscape of the US because of the new surge of wealth. Newfound wealth motivated industrial groups and businesses to join hands to protect their future class interests at a national level by influence over state policies of business and industry. This objective was only possible through political influence, either asserting directly though its representatives or by grooming political horses through indirect funding. Because wealth building, accumulation and its future protection without capturing state power would be a brief phase in the presence of populous societal forces.

In the quest for dominance over state power, to assert industrialist class authority, many industrial groups directly jumped into political arena of the US and joined political parties. Wealth’s power bulldozed philosophical hurdles and pushed genuine political workers towards back benches and paved the way for the elite to assert their power. Soon industrialists were sitting in state’s legislative and government institutions as the nation’s elected representatives, senators and Congressmen with the dawn of 20th century. This new politician/ industrialist class later on became famous as world’s "top corporate elite," post WWII.

In 1945 the US emerged as a one of the superpowers. The real driving force behind US policies especially its foreign policy, was the corporate elite, which was very eager to promote its global agenda of wealth building. The new US elite’s crown had many sparkling jewels, and included was the Bush dynasty. The ruling US elite, with a dominating control over societal wealth and resources, started building its influence over different educational institutions, like Yale University, directly or indirectly through their generous donations from the middle of the nineteenth century.

Under the financial umbrella of corporate elite, education institutions became the incubators of scholars and professors of capitalist philosophy. This academia was particularly groomed, financially and socially, and aimed to produce the future intellectual labor force to restructure the old business and commercial philosophies of medieval ages into a modern competing philosophy with a new academic outlook. As a result, new wealth building philosophies emerged and became a driving force/ lifeline for corporate America, and later on became popular as capitalism.

Different scholars and philosophers have given different definitions of capitalism, with little difference of style and arrangement of phrases. The 21ist century academic definition of capitalism is: a process of creative destruction; the new destroy the old.

After embracing modern capitalism as a guiding beacon in the early 20th century, the US corporate elite started a new business, intellect buying. The intellect buying business was aimed at conceptualizing the capitalist philosophy as a source of corporate force necessary to drive state institutions through politics, either directly and indirectly. With the passage of time, modern form of intellectual platforms emerged at the social-political scene under the tags of: think tanks and non-profit organization for intellectual work. In today’s America, scores of so-called think tanks, funded covertly or overtly by different multinational corporations have been spoon feeding different governments, especially over foreign policy issues just after WWII.

By doing so, the corporate elite extended its ruling partnership with academia and intellectuals. This new ruling class could be seen in mid-level ruling teams of either republican or democrats and their prime job is to mold public opinion according to their political partners/mentors. The hired intellectuals and academia have been instrumental in crafting new theories of capitalist domination, with future aims of establishing a global government sponsored and supported by multinational corporations (MNC) to establish a modern form of the fascism: corporate fascism.

The Fascist Roots of Corporate America

On November 24th, 1934, Marine Corp Major General Medley Butler testified to the McCormack-Dickstein committee that from July 1933 to September of 1934, he was petitioned by Jerald McGuire, a New York City broker, to lead a private Army of WW I veterans, to overthrow American democratic rule and establish a fascist government in the White House. The New York Times Headline on Nov 24th 1934 read: Gen. Butler Bares ‘Fascist Plot’ To Seize Government by Force; Says Bond Salesman, as Representative of Wall St. Group, Asked Him to Lead Army of 500,000 in March on Capital — those named make angry denials

Jerald McGuire, was not alone in his desire to be a part of a fascist Coup detach. McGuire was backed by some of the wealthiest capitalists in America at that time. John Buchanan, a specialist on right-wing movements in the 1930’s said, These super wealthy capitalists wanted to pose such a threat to Roosevelt that he would step aside and if he would not they would execute him.

When petitioning General Butler to become a part of this ‘super organization’ McGuire said, Did it ever occur to you that the President is overworked? We might have an Assistant President, somebody to take the blame; and if things do not work out, we can drop him …You know the American people will swallow it. We have got the newspapers. We will start a campaign that the President’s health is failing. Everybody can tell that by looking at him, and the dumb American people will fall for it in a second.

The funding would come from bankers and businessmen who would step out of tenuous Wall Street politics and into a crypto-fascist quasi-American lobby group called the ‘American Liberty League.’We need a Fascist government in this country to save the Nation from the communists who want to tear it down and wreck all that we have built in America, said McGuire.

However, the fascist overthrow of government was primarily seen by private power as a way of solving the mass unemployment problems during the Great Depression and a way to deal with the growing power of the unions that were pressuring the Wall Street bankers to relinquish their hold on wealth. McGuire had a very brilliant solution for the unemployment situation…He had seen it in Europe. It was a plan that Hitler had used in putting all of the unemployed in labor camps or barracks-enforced labor. That would solve it overnight, and he said that when they got into power, that is what they would do; that was the ideal plan.

Just as McGuire said, the American Liberty League was formed a few weeks later, and was on the front page of most New York and Washington D.C. papers. The American Liberty League read like a who’s who of corporate America. Some prominent capitalists that backed the American Liberty League were J.P. Morgan, The Warburg banking family, General Motors President John J. Rascal, president of Heinz inc. Howard Heinz, Irene Due Pont, Nathan Miller from US Steel and many others. The plot was to receive financial backing, particularly from J.P. Morgan banking.

Now this is where the Bush family comes in. Later in the McCormack-Dickstein a hearing the Hamburg-American Line was accused and found guilty of providing free passage to Germany for US Journalists to write favorable reports on Nazism and is alleged to have brought Nazi spies and fascist sympathizers to the United States. Interestingly, the executive manager of the Hamburg-American line was none other than Prescott Bush, the grandfather of George W. Bush.

After hearing the McCormack-Dickstein committee press release on November 24th of 1934, General Butler accused the committee of editing out the names of the business people he had linked to the plot in his testimonies. In a radio interview on the 17th of February, 1935 Butler said of the committee, Like most committees it has slaughtered the little and allowed the big sharks to escape. The big sharks weren’t even called to testify. They were all mentioned in the testimony, then why all mentioned were suppressed from the testimony?

Of the American Liberty League, Roosevelt said, They steal the livery of great national ideals to serve discredited special interests…. This minority in business and industry… engage in vast propaganda to spread fear and discord among the people. They would gang up against the people’s liberties…. They seek the restoration of their selfish power…Our resplendent economic aristocracy does not want to return to that individualism of which they prate, even though the advantages under that system went to the ruthless and the strong. They realize that in 34 months we have built up new instruments of public power. In the hands of a people’s government this power is wholesome and proper. But in the hands of political puppets of an economic aristocracy, such power would provide shackles for the liberties of the people. Give them their way and they will take the course of every aristocracy of the past – power for themselves, enslavement for the public.

The scholars, economists, & politicians (i.e. Ronald Reagan being a good example) believe that even though FDR voiced opposition to the American Liberty League, elements of fascism were incorporated into The New Deal as a form of ‘soft’ fascism. Herbert Hoover also acknowledged the influence of corporations on Roosevelt as he tried to cooperate with big businesses in an attempt to bring the country out of economic depression. Regarding Roosevelt’s attempts to assuage the business community Hoover stated, Among the early Roosevelt fascist measures was the National Industry Recovery Act (NRA) of June 16, 1933…this stuff was pure fascism; that it was the remaking of Mussolini’s ‘corporate state… In this case, the NRA was part of FDR’s New Deal reforms, that on a critical note, not only ended regulation of Wall Street at this crucial time, but it allowed heads of industry greater political and economic monopoly which was contingent on providing workers with suitable work conditions and wages.

The McCormack-Dickstein committee agreed that there was indeed a real threat of a corporate fascist coup, however the newspapers downplayed the findings of the committee, and unbelievably, no legal proceedings were taken. It is interesting that Hoover felt that Roosevelt acquiesced with the conspiratorial corporate elite. This shows that FDR’s definition of fascism comes from political experience. Interestingly, historians believe that deals were made around this time between Roosevelt and the economic establishment so that they would cooperate with his New Deal reforms and in return FDR would turn a blind eye to their foiled coup.

The Bush Dynasty as a Part of Corporate America

The story of Prescott Bush’s involvement with the Nazis goes much deeper than the Hamburg-American Line. The Guardian Newspaper in London has recently corroborated that a firm of which Prescott Bush was a director involved with the financial architects of Nazism. By the late 1930s, Brown Brothers Harriman, which claimed to be the world’s largest private investment bank, and UBC had bought and shipped millions of dollars of gold, fuel, steel, coal and US treasury bonds to Germany, both feeding and financing Hitler’s build-up to war.

Trading with the Nazis during the 1930’s was not illegal, although it began to defy the economic provisions of the Treaty of Versailles due to Hitler’s remilitarization. Rockefeller’s Standard Oil and the DuPont’s were responsible for a marriage cartel with I.G. Fabens, a major Nazi conglomerate in the 1930’s. Interestingly, the DuPont families were also at the centre of the fascist plot as was J.P. Morgan, who was linked with the Rockefeller family by marriage and business. Six days after Pearl Harbor was attacked by the Japanese, FDR signed the Trading with the Enemies Act (TWEA) making any economic trade with the Nazis illegal. In the fall of 1942 all of Prescott’s business assets with Brown Brothers Harriman & Co. were seized by the American government under the TWEA .[3]

After going through a brief history of corporate America, it can easily be figured out that today’s political parties (republican and democrat) are the ultimate shape of old political groups. These two parties have emerged as a guardian of capitalist legacy of their elders. The Republican Party could best be described as a party of fundamentalist and extreme rightist, which believe in aggressive approach for US global domination. Whereas, democrats have the same ideals as do the republican, they go about it differently.

So, US election is a choice between the Rockefeller Republicans and the neo-cons, between the Council on Foreign Relations (Obama/Biden) and the American Enterprise Institute (McCain), between the old guard of foreign policy and the crazies. Consequently republican and democrat parties could be described as two sides of the US corporate coin, which has been used by ruling elite to achieve its grand global objectives of US domination. And for this purpose US ruling elite have clear road map of building wealth, which has intellectual backing of capitalist philosophers and academia. Fundamental principles of capitalist wealth building philosophy can be described as follows:

1. No one becomes rich by saving money.

2. Sometimes successful businesses have to cannibalize to save themselves.

3. Two routes other than radical technological change can lead to high growth-rate of return opportunities: sociological disequilibrium and development disequilibrium.

4. Making capitalism work in a deflationary environment is much harder than making it work in an inflationary environment

5. Capitalism is the process of creative destruction. The new destroy the old. Both the creation and destruction are essential for driving economy forward.

6. No society that values order above all else will be creative, but without some degree of order, creativity disappears [4].

 Chapter-2

The US on Road to Cold War

Historical back ground

The US preferred to remain isolated from global conflicts, towing to its foreign policy goals of avoiding any entangling alliances, especially in the Old World (Europe) since the dawn of 20th century. Philosophy to avoid any kind of involvement in armed conflicts or regional wars was based upon US needs, because America was focused towards building its national wealth, after the second Industrial Revolution. In the beginning of the 20th century, US had established the strong foundations of capitalist society, implementing its old wealth building principles.

Now, with its eyes set towards future global prospects for capitalist gains. The US corporate elite had started investing in research and development activities both in private as well as in state run universities in the field of science and technology for inventing new products and technologies. The research scholars and development engineers worked hard in their labs and produced fantastic results. New techniques of mass production were introduced in the industrial sector to run the industrial wheel at high speed. Mass production techniques created the needs for production as well as business management. New inventions, along with innovative work techniques, accelerated the pace of industrial productivity, which eventually geared up wealth building processes in the US. Newfound wealth not only strengthened the old banking and financial system with innovative banking, but also emphasized the needs for new aggressive philosophies of capital investments for wealth building.

WWI in Europe proved a fatal blow to European capitalist economies, which led them to face the historical economic depression of 1930. Another important development of early 20th century was the communist revolution of 1917 in Russia. As a result many wealthy Russians of pre-communist revolution era, who were holding influential positions in business and industry, fled to US with their money. The majority of Russian migrant businessmen were related to oil and gas industry, with their previous business base in Central Asian states. This group of wealthy Russian settled in Texas due to their old business relation with US oil and gas businesses and later on became a strong voice against the Communist revolution.

Great Depression

The worst and longest economic collapse in the history of the modern industrial world lasted from the end of 1929 until the early 1940s. Beginning in the US, the depression spread to most of the world’s industrial countries, which in the 20th century had become economically dependent on one another. The depression was caused by a number of serious weaknesses in the economy. Although the 1920s appeared on the surface to be a prosperous time, income was unevenly distributed. The wealthy made large profits, but more and more Americans spent more than they earned, and farmers faced low prices and heavy debt.

The lingering effects of World War I (1914-1918) caused economic problems in many countries, as Europe struggled to pay war debts and reparations. These problems contributed to the crisis that began the Great Depression: such as the disastrous US stock market crash of 1929, which ruined thousands of investors and destroyed confidence in the economy. Continuing throughout the 1930s, the depression ended in the United States only when massive spending for World War II began. The depression produced lasting effects on the United States. It led to the election of President Franklin Delano Roosevelt, who created the programs known as the New Deal to overcome the effects of the Great Depression. These programs expanded government intervention into new areas of social and economic concerns and created social-assistance measures on the national level. The Great Depression fundamentally changed the relationship between the government and the people, who came to expect and accept a larger federal role in their lives and the economy. [1]

Europe and Great Depression

In Britain and France, a moderate recession lasted through much of the 1920s. The recession was far worse in the defeated powers. The entire economy was in shambles. Hyperinflation hit much of Central Europe, especially Germany in the early 1920s, and unemployment reached great heights. The German economy, long the largest in the region, was also hurt by the obligation to pay reparations and the confiscation of machinery and goods by the victorious powers. Strong growth resumed in much of Europe only in 1926–1927.

The Great Depression, which began in 1929, resulted in the most serious disruption in European economic life since the advent of industrialization. Despite numerous problems, mostly related to the Great War and the Versailles Treaty, by the mid-1920s mild optimism had appeared justified. A reduction of reparation payment schedules and a growing atmosphere of trust suggested that Europe’s troubles could be resolved peacefully. The widespread development of new products like the radio and the automobile further supported the optimistic mood. Yet these signs proved tragically misleading.

The economy of the West crashed when the largely unregulated speculation on the New York stock exchanges permitted a rapid sell-off of securities that created a ripple effect throughout the world economy. Every nation of the Europe was seriously affected. In all countries that were still democratic, assaults were made on the parliamentary system of government. Great Britain and France managed to survive by accepting multi-party political coalitions and economic ideas not dreamed of in the pre-war era. Germany, Italy and Russia, however, had established systems of government that utilized organized and violent control over the citizenry.

The vast economic reorganization of Russia, instituted by Stalin, brought untold hardship on Soviet citizens. Germany, the most severely struck by the depression, fell into the grasp of Hitler and the National Socialist (Nazi) party, which brutally eliminated opponents, real or imagined, while embarking on a rearmament program that helped reverse the economic damage caused by economic collapse. In Italy, the impact of economic reorganization under state control was less clear, in part because it was obscured by early mobilization for war. Before the lessons of the Great Depression could be fully digested, Europe found itself embroiled in a second world war that proved longer and even more devastating than WWI. [2]

The effects of World War II had far-reaching implications for the international community. Many millions of lives had been lost as a result of the war. At the end of the war, millions of refugees were homeless, the European economy had collapsed, and most of the European industrial infrastructure was destroyed. Germany was divided into four quadrants, which were controlled by the Allied Powers — the United States, Great Britain, France, and the Soviet Union. The war can be identified to varying degrees as the catalyst for many continental, national and local phenomena, such as the redrawing of European borders, the birth of the United Kingdom’s welfare state, the communist takeover of China and Eastern Europe, the creation of Israel, and the 4 divisions of Germany and Korea, and later of Vietnam. In addition, many organizations have roots in the Second World War; for example, the United Nations, the World Bank, the WTO, and the IMF. Technologies, such as nuclear fission, computers and jet engines also appeared during this period. A multi polar world was replaced by a bipolar one, dominated by the two most powerful victors, the United States and Soviet Union, which became known as the superpowers. Marshall Plan

In view of the continued poverty and famine in Europe, and with the onset of the Cold War that made it important to bring as much of Germany as possible into the western camp, it became apparent that a change of policy was required. The most notable example of this change was a plan established by United States Secretary of State George Marshall, the European Recovery Program, better known as the Marshall Plan, which called for the US Congress to allocate billions of dollars for the reconstruction of Europe. Also as part of the effort to rebuild global capitalism and spur post-war reconstruction, the Breton Woods system was put into effect after the war.

For western Germany, the psychological impact of the Marshall Plan was large. In monetary terms, Germany received only half of what Britain received; in addition, Germany was eventually forced to repay the majority of the money. But it meant that the occupation policy was officially changed, and thus the West German people could finally start rebuilding their new nation. The East German populations were not included, and their attempt to revolt against the Russians a few years later was quickly put down.

End of European Imperialism

The destruction of Europe and the destruction of a significant portion of the United Kingdom’s cities (via aerial bombing) would also ruin the reputation of the imperial nations in the eyes of their colonies. Coupled with the enormous expense incurred in the war, an empire was perceived to be an unnecessarily expensive possession. Thus this would provoke the rapid decolonization process that would see the empires of the United Kingdom, France and others swept away.

Nationalist tendencies helped India and Pakistan, which became independent from the British Empire in August 1947. Soon Malaysia and other South East Asian colonies also became independent. The Netherlands lost Dutch East Indies, and France lost Indochina. In just a few decades, most Asian and African colonies were independent. The immense destruction wrote over the course of the war caused a sharp decline in the influence of the great powers. After the war, the Union of Soviet Socialist Republics and the United States both became formidable forces. The US suffered very little during the war and because of military and industrial exports became a formidable manufacturing power. This led to a period of wealth and prosperity for the US in the fields of industry, agriculture and technology.

While the homeland of the United States was untouched by the war, quite the opposite was true in the Soviet Union. At the height of the Axis advance in 1941, the Wehrmacht got within 20 kilometers (12.5 mi) of Moscow. Although the Nazis were pushed back from Moscow by Soviet winter counter thrusts in early 1942, the Wehrmacht’s Operation Blue in summer 1942 pushed Russian forces northeast of the Black Sea to Stalingrad and southeast of the Black Sea to the approaches to Grozny at the foot of the Caucasus Mountains. Therefore the Germans controlled all of Soviet territory west of Leningrad, Moscow, and Stalingrad, from the Baltic Sea to the Caucasus.

During the initial German invasion, Operation Barbarossa, the use of scorched earth tactics by both sides left the western portion of the Soviet Union almost totally destroyed. Agricultural land was burned, livestock exterminated, infrastructure dismantled or destroyed and entire towns flattened. All of this land was part of more battles as the Red Army swept west in 1943-1944. Although the Soviets were able to salvage some heavy industry and ship it to safer areas around the Ural Mountains, much of the USSR’s pre-war industry fell into the hands of the Germans.

New Superpowers

The Soviet Union suffered unprecedented casualties during WWII. From 1941 to 1945 the Red Army lost over 10 million killed and more than 18 million wounded. Civilian losses were also immense; most estimates range from 14 to 17 million civilians killed. Most civilians in the occupied lands in the western USSR were either shot or left to starve or freeze to death by the Germans. The total deaths resulting from the war amounted to roughly 14% of the USSR’s and 16% of Poland’s total pre-war population. By comparison, the United States lost about 0.3% of its total pre-war population.

Because of the immense loss of life and the destruction of land and industrial capacity, the USSR was at an economic and strategic disadvantage relative to the United States. The USSR was, however, in a better economic and strategic position than any other continental European power. By the end of the war in 1945 the Red Army was very large, battle-tested and occupied all of Eastern and Central Europe as well as what was to become East Germany. In areas they occupied, the Red Army installed governments they felt would be friendly towards the USSR. Given the tremendous suffering of the Soviet people during the war, Soviet leadership wanted a buffer zone of friendly governments between Russia and Western European nations.

America as a leader of Capitalist world

The US suffered very little losses during WWII and because of military and industrial exports became a formidable manufacturing power. This led to a period of wealth and prosperity for the US in the fields of industry, agriculture and technology. At the end of WWII, the US economy was touching its peak. In 1947, the US produced half of the world manufactured goods, 57% of steel, 43% of electricity, and 63% of its oil needs. Also, US citizens owned three-quarter of the world’s cars and US companies manufactured 80% of all cars built. Records show that US GDP was 50% of the world’s GDP. On the other hand Europe and Japan were struggling to rebuild their economies, for which US has already devised Marshall Plan of rebuilding its capitalist allies.

With the exception of the newly emerged communist bloc, the rest of world’s markets were open to US products. Post WWII era was golden time for US corporate elite to apply its wealth building philosophies. It was time to take the lead and to tap the unlimited economic opportunities. The Americans were not interested to follow the old European path of colonialism, for future global domination, due to a number of historical and practical reasons. They were interested to practice the 5th clause of their wealth building philosophy: Capitalism is a process of creative destruction.

The Americans scraped the old (European style) banking and investments system and planned to control the world economies through new financial institutions. In doing so, the Americans established the World Bank (WB), IMF and other lending institutions. Initially, US-led financial institutions had symbolic representation of its capitalist allies at the board of directors of these institutions, but the main funding came from the America. So, reigns of these financial institutions remained in US treasury department. Ostensibly, the official role of W.B, IMF,, US Aid and other financial institutions were characterized as an economic facilitator to rebuild wrecked economies of Europe and Japan on one hand, and on the other hand to help the ex-colonies of Europe (in Asia and Africa) to establish their industrial infrastructure to gear up their economies.

But practically, the US and its ruling corporate elite had its hidden agenda- to control global wealth through these financial institutions. The US wanted Europe as its technological colony, and this is no longer secret. This fact has undeniable record. At numerous occasions, US companies used unethical tools with state backing, to push their competing European and Japanese companies out of competition to win business deals, during last fifty years of the 20th century. The Europe and Japan had their own financial limitations, and they saw the US as huge and well established market for their products. On the other hand the US saw the ex-European colonies and other poor countries as its financial colonies.

Since the creation of the W.B, IMF and US Aid, the US has been using these financial institutions as a strategic tool to create the corrupt ruling gangs (civil & military) in poor countries of Asia, Africa and Latin America in the light of its capitalist philosophy. Money just changed hands, but not the real ownership of imperialist financial institutions. Resultantly, money, which went in poor countries in the shape of so-called development debts, came back in complex European and US banking networks as black money, which later on went through organized financial laundries to emerge as white money, ready to invest in Western economies. Unfortunately, no remarkable success story of any borrower country from the above cited financial institution is available to quote. On the contrary, debt statements of the borrower countries are blinking in red color, showing them almost bankrupt.

The United States of America’s global financial strategy has produced positive results as per US perception. Now, corrupt ruling gangs of poor borrower countries are dancing over the instructions from Washington or Langley, and unfortunate masses of these borrower countries are crawling on the ground like parasites. On the contrary western NGO’s networks with the financial backing of big multinational companies and different spy agencies have been operating in such poor countries to portray the wealthy west as champions of the humanity, through photo sessions by showering few dollars worth of stuff over large crowds of hungry peoples.

Envisioning the above painted picture of global domination, and embracing the worst kind of capitalism, Authoritarian Capitalism, the US appeared on the global stage as a leader of the capitalist world in1945 post WWII. Europe and Japan formed the alliance with the US by embarking upon collaborative and cooperative forms of capitalism respectively. To meet future regional needs, the US and its allies created regional, remote control agent leaders and client state to advance their capitalist agenda of wealth building.

Cold War Causes

Conventional Ideological Wrestling

There is disagreement among historians regarding the starting point of the Cold War. While most historians trace its origins to the period immediately following World War II, others argue that it began towards the end of World War I, although tensions between the Russian Empire, other European countries and the United States date back to the middle of the 19th century.

As a result of the 1917 Bolshevik Revolution in Russia followed by its withdrawal from World War I, Soviet Russia found itself isolated in international diplomacy. Leader Vladimir Lenin stated that the Soviet Union was surrounded by a hostile capitalist encirclement, and he viewed diplomacy as a weapon to keep Soviet enemies divided, beginning with the establishment of the Soviet Comintern, which called for revolutionary upheavals abroad.

The subsequent leader Joseph Stalin, who viewed the Soviet Union as a socialist island, stated that the Soviet Union must see that the present capitalist encirclement is replaced by a socialist encirclement. As early as 1925, Stalin stated that he viewed international politics as a bipolar world in which the Soviet Union would attract countries gravitating to socialism