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http://www.plutobooks.com/display.asp?K=9780745321813&,
and The Ideology of Tyranny: The Use of Neo-Gnostic Myth in American Politics
(Palgrave Macmillan, 2011) see:
http://us.macmillan.com/theideologyoftyranny/GuidoGiacomoPreparata.
Eurasia along a specific major fault line. Later on, Preparata also talks
the Electric Power Research Institute (EPRI, Palo Alto, USA), and subsequently
economics, and politics. He says: It is the quest for power that drives
joined the research division of the Department of Supervision and Regulation at the
By Lars Schall
The following exclusive interview was published at ASIA TIMES ONLINE under this
link:
http://www.atimes.com/atimes/Global_Economy/NF30Dj03.html.
Lars Schall: Mr. Preparata, could you give our readers some basic idea
about the main thesis of your book Conjuring Hitler, and also why you
took the step to write it at all?
Truth would quickly cease to become stranger than fiction, once we got as used to it.
Guido Preparata: Originally, when I began to work at the Bank of Italy, I had chosen
to investigate Nazi finance as a fancy topic, some kind of divertissement to add to my
H.L. Mencken
future publication projects. Eventually the whole subject of Nazi Germany took up a
Guido Giacomo Preparata was born 1968 in Boston, Massachusetts, and raised in
life of its own, and I became engrossed with it for nearly a decade. The whole project
the United States, France, and Italy. He has obtained a B.S. in Economics at the
ended up being very much shaped by the turn of events following 9/11.
Libera Universit degli Studi Sociali (LUISS, Rome, Italy), an M-Phil in criminology
at the University of Cambridge (UK), a Masters degree in Economics, and a PhD in
What was happening to the collective psyche of the West under the aggressive
Political Economy & Public Policy, both from the University of Southern California
leadership of the USA filled me with revulsion. And thus I drafted Conjuring Hitler
Preparata is the author of the books Conjuring Hitler: How Britain and America
inexplicable rise to power of Hitler being the chief one one could pull the wool off
peoples eyes and fashion thereby, and gradually, a clime of informed dissent against
the terrible mayhem of this War on Terror.
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L.S.: At the beginning of your book you are stating that there is
out outside any conventional party line or schema on the abuses of the power
something far worse than Nazism, and that is the hubris of the Anglo-
structure is likewise resisted by its discursive custodians (at all levels and of all
political shades), who have been conditioned to brand reflexively the dissenter as an
war. (1) How did you come to this conclusion that has very little in
The fact that there is indeed out there a slew of amateurs who churn out a profuse
amount of extravagant pamphlets full of wild speculation, referenced by threadbare
G.P.: Its the old dilemma. What is worse: being a criminal or putting deliberately an
bibliographies, certainly helps their case. But the question at hand does not pertain to
arsenal into the hands of a known criminal? I think the latter is worse, hence that
those conspiracy theorists, but to the trahison des clercs: if you are perceived as
statement.
breaking ranks with your former brothers-in-arms, they will make you pay. I am an
Italian bourgeois that was raised in what used to be a staunchly pro-American
household during the late stage of the Cold War; it has taken me thirty years to detox
myself (9/11 was the turning point)that is what its about, allegiance, not conspiracy
G.P.: It is notorious and beyond dispute that the Anglo-American elite along with
the Soviets financed and supplied the Nazis before and even during the war. This
fact is obviously so disturbing and confusing for all those who have been raised with
the complex of Anglo-American moral superiority that the Establishment has been at
greatest pains to rationalize it. The only rationale it has been capable of advancing
whenever it cannot avoid the issue altogether, which is what it logically prefers to do
is to assert that a few rotten corporate apples did business with the Devil (i.e. the
Germans) behind everybodys (i.e., the States) back. This explanation is clearly
untenable, yet anyone that dares to challenge it is ultimately bound to face what
expresses itself as the wrath of devout believers. Their instinctive repartee is that
anyone doubting the vulgate is self-evidently an unreasoning fascist-revisionistconspiracist.
The tactic is so inane that it would be risible if the propagandistic stakes of this
L.S.: By and large Otto von Bismarck is still seen as a genius of foreign
discursive set-up were not as decisive as they really are. It is their standard
inquisitorial trump. Indeed, it is not directly aimed at the critic but at whatever
point to the year 1887 and a very crucial mistake done by von Bismarck
audience might be listening to the debate: it is meant to scare away readers and
related to Russia. What has this mistake been all about and how was it
potential supporters from the critics warnings by tarnishing him with the most
unsavory label the system has devised for the purpose, that of the truculently stupid
crypto-fascist. In the general arena of public opinion, any skeptical attack carried
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theory. Truth be told, moreover, this game is not without its comical undersides: I
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free corporate markets, the prophet Darwin, and the i-pad, but believe in Mozart,
peace and cooperation, it can only come through a rebirth of an alliance between
Germany and Russia (ideally a Paris-Berlin-Moscow-Beijing axis), and one approved
by the Catholic and orthodox Churches. And, of course, none of this will come to
proper fruition without the input of our like-minded brethren in Anglo-America
minorities all of us everywhere for the time being.
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Bismarck, despite his strategic genius, failed to see that the Russo-German embrace
the effort consists of staging these theatrics by which the western psyche comes to
was the key: in 1887, for instance, it seemed that Germany had a decisive chance of
tying Russias fate to its own by underwriting the czars debt. But, again, some kind of
damned, damning myopia made all such attempts abort; even on the eve of the war,
in 1905 when Bismarck had been long gone, Wilhelm and Nicholas attempted one
last time some kind of pact, which also came to nothing. One missed opportunity after
another. The rest, as they say, is history.
This game of persuasion is best effected when 1) the target the ever mysterious
public opinion is itself subjected to a studied process of spiritual debilitation: that is
to say, when, as has conspicuously been the case for the past decade, it is barbarized
by poor education, vanishing opportunities for self-realization, etc.; and, no less
L.S.: At the beginning of the 20th Century, Halford Mackinder from the
importantly, when 2) the rogues lend themselves to the charade through bombastic
grandstanding and televised bluster, without which the Anglo-American elites could
in no way produce the show: e.g., North Koreas barn-storming and Ahmedinejads
understand?
cretinous anti-Israel and homophobic tirades are, alas, material from the same
miserable screenplay.
G.P.: As far as I can infer, Mackinder did not pioneer or invent anything; he just
committed to paper what was plain to see, namely Englands maritime preoccupation:
So, in a sense we are in an Orwellian scenario once again. Possibly, we have never
the imperial fear to lose control of the world if any kind of extensive political alliance
abandoned it. What is certain is that in this pornographic power-play, we, the
coalesced on the Eurasian landmass. Mackinders, in effect, was but the academic
westerners, are the most obscene thespians of all and this is because, if we so
statement of a notion that had been in the air for some time: a whiff of Englands
wished, we would have the wealth and the means to bring Eden to this planet. But,
apparently, we do not wish it. And if that is really the case, maybe we do not deserve
this earth after all.
L.S.: Was Hitlers Drang nach Osten (Drive towards the East)
L.S.: The path to the two world wars was never a straight line, but
You call them useful idiots. Why so? And did you discover a certain
of British strategists, namely that they could sway the Germans against the Russians
pattern at work that is still pretty much alive and kicking in our time?
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way of, say, the Montoneros in Argentina, the RAF in Germany or the Red Brigades in
L.S.: At the end of that war both Germany and the Anglo-American allies
Italy, all of them are useful idiots, by definition. The terrorists psycho-sociological
typology is fairly consistent across time and space: s/he generally is of low middle-
forces gained more benefits from the Bolshevik revolution that took place
class/upper proletarian status, very young (well below thirty), not particularly
in October 1917? And could you also tell us about the major players
involved, please?
G.P.: The whole story of the USSR is a deep mystery, especially its beginnings. Official
junctures to play a critical role, of course. Terrorism is (elite) politics, never the
(Liberal) historiography has it that the birth of Bolshevist rule was for the most part a
L.S.: Was the reason for the First World War basically a trap laid by the
academia Russian affair, with just a little bit of (somewhat embarrassing, but easily
British and Russian elites and the German leadership was stupid
dismissible) German gold. Nothing more. Any intimation that the Anglo-Americans
had been involved in major puppeteering in the Bolshevik theater to favor them,
that is is hissed away as conspiratorial speculation.
G.P.: A siege, yes, a mouse-trap. Yes, damningly stupid, indeed. Von Moltkes
(German) Chief of Staff had been invested in 1900 with political authority it did not
And yet I cannot resist the suggestion that it was so because, over and beyond only a
know how to wieldand, in truth, it was not its role to exercise such power in the first
handful of revelations which are referenced in the book (about, e.g., Englands
place: it was as if by surrendering all might to the (dynastic and thus unfit) warrior
sabotage of the czar in 1916, when it seemed that Russia was inclined to seal a
caste of Prussia, Germania as a whole had spiritually abdicated. And by doing so it has
separate peace with Germany), every single historical development points in that
direction. If only they opened all archives to usIf you study the deportment of the
L.S.: How did Germany financed the war effort and did this had some
grave consequences later on?
that in one form or another facilitated the East-West world condominium, whose
leadership was in any case solidly in the hands of the Anglo-Americans.
G.P.: With its wealth, through debt, which the Allies left standing at Versailles as
Veblen had understood deliberately. And that was done with a view to causing an
inflationary tsunami, which would have in turn occasioned a major, and strategically
critical, bailout.
L.S.: After the war came the Treaty of Versailles that enhanced the rise of
Hitlers pseudo-revolutionary movement in Germany. Someone who
wrote back then a famous book about the Treaty of Versailles was John
Maynard Keynes. Did he understand the game that was taking place?
L.S.: Had the entry of the United States into the war something to do with
the debts of the Triple Entente?
G.P.: Not even remotely. Keynes is a fascinating thing. He has been erected into some
kind of a colossal wax icon: he is one of those authors that, through posteritys
G.P.: Yes, but not primarily: the US intervened to play the imperial game as Englands
junior partner as the brawny, eager apprentice; the preservation of its credits was a
solid incentive to embark on this path, but not the actual cause.
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Soviet Union throughout its 70-year life, you notice that it kept up a major pretense
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life.
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This man, who had been hailed by Time magazine in 1999 as one of the towering gods
of the 20th century, failed miserably to comprehend every major event of his time: 1)
Versailles, case in point; 2) Britains return to gold, which he denounced as the inane
archaism that caused the great strike of 1926 {it was neither the former nor did it
cause the latter}; 3) the coming and severity of the Slump; and 4) the Nazi recovery.
As for Versailles, he did not have a clue as to what was being devised: he stormed out
of the conference moaning that Germany could not pay what was asked of her, not
intuiting, as Veblen did, that those astronomical sums were never meant to be paid,
but only, through the first series of gold installments, to burst the bubble of the
German war debt.
But then again, it was not his role to predict, intuit anything; he did exactly what the
commedia expected of him: a nice little Keynesian tantrum, followed by a book that
told the story (nowadays itd have come with a bonus DVD)And then in 1941 (if I
remember correctly) to crown his remarkable dramatic career he was made a Director
of the Bank of England; yes, imagine him, gloatingly gabbing away at the very feet of
the High Priest, Montagu NormanThats Keynes, the great Keynes, the champion of
the enlightened middle-class.
regard, to play the game in proper fashion, you always need, opposite from you, an
L.S.: Someone you really like and I think for very good reasons is
obnoxious curmudgeon of the conservative Right, whos cued to bark about the merits
Thorstein Veblen. You are writing that he gave us in his review of Keynes
overburdened by the mad stupidity of the Socialists. Simply said, the Keynesian
stance is confected to play good cop when the economy falls on black days: the
please?
G.P.: Thorstein Veblen is the greatest social scientist of modernity the only
economist Einstein would bother to readGiven the going spiritual temperature of
our times, Veblen is completely and logically neglected in academia. My older
As for Keynes the man, from what we know, he seems to have cut a pretty despicable
professors in the USA, who had never read him, were nonetheless wont to
figure: arrogant, racist, a shameless thief of other peoples ideas, an exploiter of the
acknowledge Veblen as a classic (the newer academic generations have never even
underclass (for male prostitutes), and a speculator. But more to the point, as a
heard the name) and, for occasional display, pulled out of their deck the routine
theorist, he was a total nullity: he is the dottore of the commedia dellarte, the
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greater spiritual sophistication and the ever lurking menace of his possible swing to
radicalized German regime, but not as an unintended and deplorable reaction against
the East: how else would you explain the relentless admonishments to the German
people by way of the Holocaust Industry and the chief reliance on Germany for every
writing in his book, though that is not even what he actually contemplated (for the
major plan of the Washington consensus, financial (viz. the Euro) and military
sake of sensationalism, Keynes briefly conjured the specter of an alliance between the
(NATO)?
disgruntled German generals of yesteryear with the Bolsheviks against the West I
will return to this crucial point below in connection with the Treaty of Rapallo).
L.S.: You are writing in your book that Hitlers party was a front
organization for a religious cult that was embodied by the Thule society.
Veblen argued that the gestation of a new militarized regime was the precise intent of
What was the core belief of that secret society and where did it came
the schemers at Versailles since their common plot was to steer these reinvigorated
from?
German dynasts against the Bolsheviks, for whom Veblen came, like many of his
radical contemporaries, to cheer, romantically. He was mistaken in this: the true
target of the scheme was Germany herself not the USSR, which would indeed be the
key accomplice in this sophisticated game. But he deciphered the basic dynamics of
the deception; he foresaw the invasion of Russia by this very creature of paroxysmal
militarization (and for good measure, he had sketched in 1915 a portrait of its
G.P.: All is religion. All history is a reflection of the battle that spiritual forces wage
against one another on other planes. It is not economics and least of all the survival
instinct (whatever that is) that drives history, but the quest for power, and power in
its elaborate institutional manifestations is a form of (psychical) space that utterly
transcends the relationship of production and distribution, let alone the basic
dynamics of the wolf pack, or the more elaborate political economy of the beehive.
Power is a purely human suggestion. Suggested by whom? That is the question. The
When I first read the review I felt dizzy: how can anyone not have recognized the
paramount importance of this review long before I did? And all Veblen did was to
leverage one basic economic clue: the failed sequestration by the Allies of the financial
wealth of Germanys absentee elite. Genius.
NSDAP thus appeared to have been a front for some kind of nebula of Austro-German
magi, dark initiates, and troubling literati (Dietrich Eckhart comes to mind), with very
plausible extra-Teutonic ramifications of which we know next to nothing. Hitler came
to be inducted in a lodge of this network, endowed as he seemed with a supernatural
gift of inflaming oratory.
L.S.: The power structure within Germany wasnt changed after the war,
there was no real revolution. Why?
This is a theme that I am still studying, but from what I gathered, the adepts of the
Thule Gesellschaft communed around the belief of being the blood heirs of a breed
G.P.: Precisely because it was Britains plan not to change things at the top: in order to
finish what could not be obtained with the siege of WWI, you had to push Germanys
away from this earth, which is the shoddy creation of a lesser God the archangel of
dynastic malady to the extreme, eventually re-involving the Fatherland in war and
the Hebrews, Jehovah. It all sounds positively insane to post-modern ears, but it
finishing it off. Which is what happened. It took 30 years and scores of millions dead
to defuse the German threat, and still to this day, the Anglo-American elite, though it
feels it has done most efficacious work in re-programming the German psyche (and
indeed it has), remains insecure and wary of the German of what used to be his far
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L.S.: The corporate logo of the Nazi party was the ancient swastika
which is basically a vector diagram of rotation, spin and stress. Why was
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it chosen?
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torrent of dollars in military expenditure was not bound to raise much suspicion. So
G.P.: I briefly mention in the book an 1) axis through Hyperborea the mythical land
of ancestors whose spinning is symbolized by the cross; and 2) the dextrogyration as
symbol of an active principle of altering a given course of cosmic development
Rapallo seems to be dying in 1933, but in truth Stalin, in evident collusion with the
Anglo-Americans, would keep feeding the German eagle certainly until Barbarossa.
Not for a moment do I believe the tale that he was doing so to deflect Hitler against
the Allies. Those very Allies that left the Western front quiet for three yearsIt is a
diabolical thing they all did to push Germany on a two-front mire againno question
L.S.: One of the most tragic figures in German history of the 20th Century
about it in my view.
L.S.: The Weimar Republic for its part is inextricably linked with the
G.P.: Yes he was. He incarnated all the contradictions of the German spirit before the
great disaster of 1914-1918: a Jewish scion totally infatuated with the Blonde Beast,
patriotic to the bone, and a Utopian visionary all in one. Weimar overwhelms him; it
G.P.: The mystery resides in Germanys War debt. I dont remember where exactly or
confounds him completely: he is a creature of the old order and fails to fathom
when the controversy began, but radical voices especially from the Right-end of the
entirely what is afoot after Wilhelm II vanishes in Holland. He thus takes the
spectrum, if I recall correctly intimated this much early on; Hitler himself abetted
Republic at face value, with a good dose of presumption, thinking he can outplay
this contention. Therefore, needless to say, mainstream historians often begin their
exposition of this episode by denying in the most categorical fashion that there could
be fibers of truth to the claim: they support their rebuttal by showing that redemption
and inflation had in less than two years virtually eaten away the amount due on that
debt. So, for them, end of story; the inflation, they say, was Germanys crazed egress
G.P.: Rapallo is a pivotal articulation of our story and one that complicates the plot
from what seemed a despaired situation (the Reparations), itself dictated by the
significantly, but behind the tangles of secrecy, the gist was fairly straightforward:
malevolent obtuseness of the Allied gerontocrats (Keynes again). The rest is,
given the deceit of Versailles which was, I believe, spun mostly to confound the
French (but that is just a guess), if Germany had to rearm to play Act II (WWII),
this had to be done 1) in (semi-)secrecy, which it was; and 2) within an extra-legal
space, so to speak: and in this connection Bolshevik Russia provided the perfect
haven in which to lay the foundations of the new Reichswehr. It is a very tortuous
story.
Well, not so fast. Indeed, the principal of that debt vanished quite fast, but it didnt
just evaporate like summer rain: it was systematically poured, when it stayed in
Germany, in shorter-term T-bills, and/or liquidated and converted in foreign
exchange when exported out of Germany (capital flight) and this last was one of the
chief factors of the inflationary dynamics: the massive depreciation following the
We know that this marriage of thieves lasted for certain until Hitler seized power.
conversion. For evident geographical reasons, Holland seems to have been the
And, before then, with the Dawes bailout, some of that secrecy had also been shed, as
principal haven for the hidden fortune of the German absentees. And, indeed, it was
US conglomerates had come to Germany with such fanfare that pouring some of that
via a Dutch outfit that the clique of Harriman of which Prescott Bush was a steward
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it the world saw the creation of the Bank for International Settlement
(BIS) in Basel, Switzerland. Related to the BIS, there is this famous quote
by the outstanding historian Carroll Quigley in Tragedy and Hope:
soaring inflation, which exploded into full-scale runaway hyperinflation, via mass
The powers of financial capitalism had another far-reaching aim, nothing less than
redemption of those bills, when the fate of the Weimar Republic seemed sealed after
to create a world system of financial control in private hands able to dominate the
Frances invasion of the Ruhr in early November 1923 (in fact, this only sealed the
political system of each country and the economy of the world as a whole. This
system was to be controlled in a feudalist fashion by the central banks of the world
1924-1929, c) The Crisis, 1930-1933). {Frances showing in all this story, I must add,
was an utter, horrifying, and unqualified disaster: and it pains me much to say this
conferences. The apex of the system was to be the Bank for International
Seen thus i.e., in its geopolitical context, the hyperinflation of 1923 loses much of
its catastrophic, aleatory mystique: there were precise mechanisms at work here. In
my view, on the basis of Veblens prophecy, the British were expecting the meltdown
and fully prepared for it. Indeed, the best was yet to come: a bailout, and, thenthe
Nazis.
is a disquieting image. Honestly, I dont know how dominant the BIS is today in the
G.P.: The wealthy absentees, as always (and the speculators). It was a veritable
economic fratricide, via the intangible slings and arrows of finance: Germans turned
against (less affluent and poor) Germans.
L.S.: After the hyperinflation came the Dawes plan. What was this all
about?
game; I dont know if it ever rose to wield the coordinating role that many attribute to
it.
What is certain is that it was the extra-territorial venue, the off-shore haven where the
warring parties and that is to say the representatives of Nazi Germany, too, of course
sat across the same table to allocate repayments, interest and dividends amongst
G.P.: A full-scale investment binge with a sort of dollar-peg (the New gold-Mark), the
basic like of which we have witnessed repeatedly in the past 60 years or so; in this last
stretch, this sort of colonizing-strategic operation has been done under the aegis of
the IMF, but it is always the same players following the lead of the same AngloAmerican strategistsstrategists who chiefly operate by way of the City and Wall
Street.
each other. This supposedly went on until 1944Or to put the disturbing truth in
simpler relief: that is where the Nazis honored their ongoing debt to fuel the war (for
supplies and provisions, given Germanys poverty of raw materials), face to face with
their very enemies, while an American banker, McKittrick officiated.
Unbelievable. We have yet to know what was really being done in Basel in those days.
For instance, while conducting archival research, I was denied access to certain
L.S.: Another famous plan was the one named after Owen D. Young. With
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the BIS. Everything about this entire affair is revolting. And what has troubled me
For the pre-war era, I have come to read, interpret everything in the key of Germanys
even more about it is that all those that have looked into this understand very well
destruction. Economists, even good ones (whom you may count on one hand; think of
that the various pieces of the tale we have been sold do not add up, but, out of fear
Karl Polanyi, for instance), tend to read everything, instead, in the key of business,
but that is a severe limitation, a sin of over-specialization: they lose focus entirely. I
composure about it all. So long as this sort of forma mentis, coupled with fear,
have studied enough economics in my life to know that it is merely an auxiliary a key
one, for sure in the game of power, which, it, is the sole and decisive drive of events.
L.S.: Two men who played an important role in those years were Montagu
Norman and Benjamin Strong. Why should people pay attention to their
In this sense you see how gold operations followed precise strategic directives. The
Bank of England is indeed the Bank of the Empire, not the other way around.
L.S.: What happened in Germany between 1929 to 1933 in terms of
activities?
G.P.: It is a very interesting bond, not so much as seen from Strongs view point (he
will die of cancer in 1928; fairly early in this story), but rather from Normans. What is
of interest is how the British managed to entangle the American apparatus so deeply
G.P.: Everything stood frozen, as it always does in times of crisis (think of today);
into this affair despite substantial isolationist feeling isolationist feeling, it is true,
bank coffers are filled with cash but disconsolate graduates live with their parents. I
which had been severely lamed since Americas commitment to WWI (one should
cant say if and how much German rentiers profited during the rough hiatus of 1929-
read Dos Passos for the chronicling of Americas patriotic metamorphosis at that
1933, what is certain is that they were waiting for a political signal from the
international community, and when Hitler was sworn in, the green light was given.
highly secret visits to the Fed and indefatigable negotiations via banking and
That is a fact. The rentiers would not pay under Papen (emblem of the old
aristocracy), not to mention Schleicher (Army), whom they feared, but with the Nazis,
rearmament with American dollars for five years (1924-1929). Strong was a
they eagerly forked out their savings. Strange, and yet, the Veblenian prophecy,
again, is of help: it will be a new radicalized regime that will be swayed against
Bolshevism not the dynasts of yesteryear. Once you hold the interpretative key, the
main difficulties melt down and the pieces easily click into place.
L.S.: Where did the money came from to finance the brown shirts and
Hitlers spectacular cult of personality election campaigns?
connections.
credit i.e. the crunch is clearly the standard strangulating technique, whose
disastrous impact on the social texture is patent: mass unemployment, stagnation,
social despair, etc.
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L.S.: Were the financial backers of Hitlers NSDAP from abroad more
important than those within German borders?
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repay progressively via taxation the debt to the private banks, which systematically
G.P.: I dont know; it seems to be one and the same compact group.
L.S.: Two important banking houses for the rise of Hitler were
Its success and swift annihilation of unemployment, however, was due to a singular
fact, and this was that the dynamics of indebtment mimicked those of a zero-percent
interest loan: it was as if the Reich merely repaid depreciation on its debt and
postponed the repayment of the principal until after the war, which, they were sure of
winning. There lay the simple recipe to Hitlers first five glorious years. No inflation,
no unemployment. That is the lesson of that singular episode: that money should
always be lent at zero interest. Of course, the success of that interlude was predicated
on the global holocaust of WWII, those were the (utterly pernicious) premises. The
future of money reform lies, instead, in engineering the conditions whereby money
may be automatically lent at zero interest and naturally accompany growth and
prosperity. And the ideas are there to make it happen but that is another story.
small) part of the greater design of propping the Nazis the better to raze Germany to
the ground in the forthcoming conflict conflict for which the Germans had been well
to the German Steel Trust, which produced half of the steel that was
L.S.: When Hitler came to power, he worked very closely with Hjalmar
Horace Greeley Schacht. Schacht introduced a new form of money
G.P.: The story of Farben is central because American participation in the combine
jobs and to finance the rearmament of Germany. How did the so called
was conspicuous, and also because Farben was one of the main contractors of the
Mefo-Wechsel work?
concentration camps.
L.S.: Would it have been possible for Hitlers Germany to conduct the war
To jump-start the anemic economy, the State paid commissions for public works with
this peculiar paper, these bills. Thereafter businesses took these bills for discount to
commercial banks, behind which stood the corporate interests of German absentees,
and obtain thereby the much awaited cash, which had lain dormant for three years.
Commercial banks then had the option to rediscount these bills with the Central
Bank. The idea was simply to revive business, and, by creating sufficient cash-flow,
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G.P.: No.
L.S.: When Hitler attacked Poland in September 1939, would it have been
possible for France and England to end the war within a few weeks or
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G.P.: Military historians have to answer this question. My understanding is that they
L.S.: One thing I do not understand is why the Allies never bombed the
certainly could have done so, but that is an imaginary if; because if Hitler had known
that the Allies would have certainly intervened from the outset, as the various defense
territories of Poland, even though the leadership of the Allies had solid
(and bogus) pacts they had underwritten commanded them to do, he would have
never struck. So
L.S.: Even though the Soviet Union also violated the integrity of the
territory of Poland, France and England did not declare war towards the
Soviet Union. Why not?
L.S.: According to Charles Higham, the member nations of the Allies and
the Axis were doing during the Second World War more or less business
G.P.: Because these were all rehearsed moves to get the Germans eventually involved
on two fronts. For three years the Allies let the Western border sleep, why? The big
why of WWIIAnd the carnage they allowed to happen in those three years (19411944)Nobody likes to broach that topic, for obvious reason patriotic delicacy,
noblesse oblige
G.P.: It tells us that even the most extreme of so-called conspiracy theorists are still
three layers short of the truth on the actual nature of power game. It seems a
suggestion of Orwells perennial war, with business as usual behind the slaughter. It is
as if the theatrics of the Cold War had been launched already in the final stages of
WWII, at a the time when the Hitlerites were notoriously finished (after Stalingrad)
policy?
and dying of a slow but certain death, and the final phases of the fight was steered to
accomplish other kinds of consolidations in view of the stage that was being set up
G.P.: They make it appears so, but its a deception. The English power elite is a
monolithic bastion: fissuring in currents and seemingly antagonistic blocs to adapt to
the shifting exigencies of any power-game is a tactical device older than prostitution
itself.
vis--vis the grand, mangy circus of the USSR. The mere fact that all the big players
were meeting in Bretton Woods in 1944 that is when the conflict was not even
concluded (!) to design the financial architecture of the Pax Anglo-Americana is
revealing in this regard.
L.S.: What was actually the reason for Hitler to begin Operation
L.S.: With Operation Paperclip, the U.S. has imported a lot of war
Barbarossa?
criminals after the Second World War into the U.S. to work for the
former enemy. (4) Furthermore, major players from Wall Street worked
extremely close with the Gehlen Organization in order to build-up the
Central Intelligence Agency and the Bundesnachrichtendienst. (5) Is that
surprising?
missile- and air power), will fight tooth and nail to keep Eurasia sundered until, that
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G.P.: This is a chapter of which I do not know much; I have read a series of
carefully orchestrated perennial war. The reliance on the USSR seems to falter in the
(academic) books on Gehlen and Paperclip, all of them extremely poor, which were
early 70s as, more importantly, American leadership itself is severely damaged by the
all bent on denying Gehlen and recycled Nazis any kind of importance: the usual
failure in Vietnam and the subsequent suspension of Bretton Woods in 1971. The role
and legacy of Nixon are in this regard crucial, as is his demise through Watergate.
threat from the SovietsThe usual rhetorical platitudes. Per se, this saga does not
interest me a great deal. By 1945, Nazi-fascism as it had risen in the previous two
decades, whatever it strangely was, had vanished from the spiritual space. Whatever
its survivors were, more or less mischievously, doing thereafter is not captivating in
Soviet empire. They will fail; it will be Reagans neocon hawks, instead, that would
my view.
rise to resolve the Cold Game by pulling the plug on the USSR (1981-1991).
Now, if one is able to arrange all this into one coherent narrative, then and only then
interests for the Bolshevik revolution, how do you see the period of the
will we be able to move on and provide a serious analysis of what has been happening
Cold War?
since 9/11 (terrorism, geopolitics etc.). Few things to me are as irritating as the
G.P.: For the scholar, the Cold War is a period of maddening complexity. I have been
attempting to plumb it for the past several years, lately by focusing especially on
Italian terrorism in connection with the decisive biennium of 1979-1981, which, in the
academic complaisance that glosses over that era affirming that it was a genuine
spiritual conflict between East and West, and that all has been perfectly understood.
There was no spiritual conflict and precious little has been understood.
chronology of the Cold War, marks the transition from uncertain condominium to the
L.S.: Fast forward to our time. The financial crisis of 2008-09 is said by
disposal of the USSR as lead supporting actor in the game. It is a work in progress; I
many to have its origins in the sub-prime mortgage crisis in the United
hope I will be able to come with something substantive on this in the future.
There is no doubt in my mind that the Cold War was a colossal pretense orchestrated
G.P.: Not at all. The subprime lever was, locally, just the magnifying device that
by the US in collusion with Russia to divide between themselves the planet (the
triggered a collapse that was logically in the making ever since this last bubble was
Chinese unknown aside) while allowing the allocation / composition of local conflicts
visibly and massively inflated, that is, in the spring of 2002. I have described in broad
by proxy. As said earlier, the beginnings with Bolshevism are still enveloped in deep
outlines in On Money, Heresy and Surrender Part I the imperial scheme of taxation.
mystery, but the entire era is one giant cookie jar of mystery murders from Korea to
(6) Ever since the Neo-Liberal swerve of 1979-1981 under the chairmanship of Paul
the attempt on the life of John Paul II, by way of the Bay of Pigs, JFK, terrorism,
Volcker at the Fed, the US empire, which had been at a near loss for nearly a decade
Watergate, Vietnam and Cambodia, the Middle-Eastern wars, etc. In the context of
to find a find a proper replacement for its postwar shattered gold-scheme, shifted
what I have come to designate as the Cold Game, it also seems as though Britain
entirely vanishes, but she is there, and her steps must be re-traced if one is to
bubbles. The one that popped in 9/2008 is, in historical succession, the third of such
In short, it appears that from 1946 to the late 60s, we are in an Orwellian setting of
The logic behind them is always the same. The first speculative swell covered the
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world (including Germany, and all around China, of course). Its fantastic.
L.S.: Do you see the crisis in the euro zone as purely home-made or is
there in your view some reasonable suspicion that the Anglo-American
financial capital wants to keep the rival EU / Germany small? In other
words, does the financial crisis in the euro zone originate in the
Why all this? In the past that is, up to 1968-1971 the US was able to pay for its
budget and military expenditures (the cost of imperium) by foisting on its trading
partners, who eventually lost their appetite to accumulate them, reams of dollars. The
dollar was (and still is) the worlds reserve currency, but Bretton Woods gold
banker / accomplice of the plan, chief economic force of the Union, and chief
exporter; then let all the other weaker players (PIGs, Spain, Italy), who produce
virtually nothing, indebt themselves vis--vis Germany and Anglo-American banks,
which, in turn, make good money from the yield on these Euro-bonds (the debt
spiral). Concomitantly, any kind of manufacturing / artisanal potential on the part of
Europes minor partners is systematically wrecked and incapacitated by the flood of
Chinese imports (China: the other key accomplice in this triangular crippling of
Europe), which are themselves crafted by laborers slaving for wages that are less than
a tenth of the Wests.
It was a masterstroke: the (affordable) industriousness of the Far East came to pick
up the manufacturing slack, while the serial bubbles proceeded to attract world
capitals to Wall Street, procuring thereby the extra resources needed for diffuse
imperial administration. This has been recognized: Germany and China, for instance,
owe their exporting success to their privileged access to, and partnership with, the US,
for which, on the other hand, they pay handsomely by investing in US securities,
wherewith, in turn, the US feeds, among other things, its military bases all over the
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Thus Europe, partly through Anglo-Americas strategic savvy and mostly through her
own despairing fecklessness, is perennially fettered, constipated, anemic, moribund.
That Greece would have been the first link to snap was known far and wide ever since
this dismal show was launched ten years ago. Funny to see how, for the past year or
so, The Economist has been shrieking hysterically over the Euro crisis, depicting in
apocalyptic brushstrokes the prospects of its eventual collapse: funny, and revealing,
to see British interests wailing so loudly, they, who are not even members of the Euro
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and France must stick together, and together, again, look to the East. Short of that,
triple alliance build by Great Britain, France and the Soviet Union would
L.S.: What do we see actually in the United States and elsewhere in the
encircle Germany. So does David Marsh write in his book Der Euro
West, given the popular labeling these days: a predator Capitalism, some
(a few days after Helmut Kohl had published his 10-point plan for the
Fascism ought more properly be called corporatism because it is the perfect merger
of power between the corporation and the state.
G.P.: I have yet to read this book. It could be, I dont know; it is an interesting thesis,
for sure.
different the corporazioni were State-mandated guilds; its another story, entirely.
What we have in the US, instead, is a system governed by an ever more oligarchicallydiseased, and outwardly aggressive, bureau-technocracy, which, internally, presides
L.S.: David McWilliams wrote not so long ago vis--vis the euro crisis and
spiritual endeavors (higher learning and the arts), and a virtual monopolization
G.P.: I wish we were governed by a true Germany, a Euro-centric Deutschland, that is.
What we have, instead, is always the same old German postwar Anglo-American
process is a now ominous and televised worship of violence in all its forms e.g., from
the grotesque realm of wrestling and the downright savagery of UFC, to
L.S.: Do you see the possibility that, if the Eurozone and EU fail to
Imperial Rome cut for semi-illiterate audiences. In its main outlines, Americas
degrading forms channeled inter alia by GM and AT&T, and the glorification of
G.P.: I dont see how that could happen. It would be a catastrophic inanity. Germany
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its adoption by, and diffusion to, the rest of the world.
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L.S.: Why do you think the US and the West are on this path?
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Americas enormous debt; and 4) its no less enormous army, which is chomping at
G.P.: Its a million dollar question you are asking me about cosmic evolution. The
superficial answer is that ten years after the demise of the Soviet Union and in the
face of a major geopolitical gridlock, the usual Anglo-American strategic centrals
the bit. Apparently China, presently the largest holder of Americas unpayable debt,
has stated it will stand by Iran, should a North-Atlantic coalition decide to move
against it.
needed a jolt to re-deploy, re-tune, re-launch in grand style the conquest of the world,
It all sounds fairly outlandish, but not downright implausible. Obviously, China has
and what more obvious gambit than planting the red-white-and-blue banner smack
risen as the arbiter of the situation, and I dont see why it would irresponsibly trade
into the omphals of the landmass itself, Afghanistan? I mean, its Kiplings Great
off wise diplomatic sailing for entrenching itself in a passive-aggressive stance behind
Iran by kicking this funny house of cards we all live in nowadays. But, it all looks
positively disturbing. Something has got to give soon, that is for sure.
The deeper, cosmic answer is that I do not know. All I know is that after 9/11,
psychically speaking, I have witnessed a dramatic transformation. True, the seeds
were there, had one looked more carefully, but the shift was nonetheless astounding,
bankers are at the top of the list of beneficiaries of wars (or the rackett
were in Ionescos play Rhinocros: all of sudden, everybody around me began to grow
a horn on the snout. But maybe the horn had been there all along; or maybe it was I
who then morphed into a rhino
The U.S. Federal Reserve creates money to fund the war and lends it to the
American government. The American government in turn must pay interest on the
money they borrow from the Central Bank to fund the war. The greater the war
going forward?
G.P.: I fundamentally disagree with this interpretative approach, which is, de facto,
the standard leftist, anti-corporate reading of history. Again: it is power that moves
G.P.: In other words, is ours, too, a time of Nazi incubation, and/or do we find
ourselves in the classic depression-plagued lull before world war? I dont see any Nazi
spiritual look-alikes around, though I, like everybody else, have heard of speculative
scenarios according to which all the conditions are being set for NATO to drag the
West into a major war by way of an Israeli strike against Iran.
history, not economics. And it has been like this at least since the era of the crusades:
as explained by Germanys once celebrated Institutionalist school, joint stock
companies were invented and incorporated by the Venetians to provide the
expeditionary corps with the necessary supplies and logistical provisions.
Corporations/banks are indeed essential auxiliaries, but auxiliaries nonetheless.
This line of thinking would suggest that 1) the failure (viz. deliberate postponement)
hitherto to inflate another vital bubble is most likely due to Anglo-Americas
resolution to teach the world a lesson with a major conflict in the face of 2) the BRICs
G.P.: Essential, as known: it fashions the scripts that will predispose the crowds to
(and South Africas) recent joint declaration of wanting to abandon the dollar; 3)
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power-play is about to unfold. How the scripts are crafted and how the crowds react
notion of what they are actually doing; and a guild of European professionals that, at
to them are themes (e.g., the nature of propaganda) linked to the great sociological
the psychical level, are completely bulldozed by the Anglo-American aura so much so
mystery of public opinion: tough phenomenological material, not for the faint of
that they administer promotions and advancements on the basis of the applicants
From what I have personally heard and this might extremely subjective, Spain is
possibly the most despairing case: for one, Catalonia, which used to be one of the holy
lands of anarchism, presently hosts some of the most ultra-conservative ultracapitalist athenaeums, venues in which deacons of micro-economic hogwash such as
Chicago-ite and Nobel laureate Gary Becker are received by adoring crowds of
prostrate disciples. Positively unsettling. In some of the Spanish economic schools the
Be that as it may, it is not enough and whatever is being done is too timid, constricted
as it unfortunately is by the pedigree of most rebels, i.e. economists who have
formed themselves on a varying brew of neo-classical, Chicago, Keynesian economics,
and to a minor degree, old-school British political economy (which includes Marxian
porridge, in my view). All of which is to say, again, that, foundationally, they, like
myself and all those who were cursed enough to have several economics degrees, have
no understanding of economics whatsoever. It is, again, a detox process, which starts
with doubt and catch-up, night-reading; its like reassembling the brain after they
have attempted to turn it into pulp/mush during the most formative years of ones
intellectual development.
state of intellectual prostration and cipayo-mania (extreme sepoy infection Spanishstyle) is so consuming that some professors have even instated the practice of the
brown-bag seminar: the very American practice of talkin science while munchin
on a Turkey sandwichWhere is all this going? Italian economics departments, too,
are wholesale appendices of the same apparatus.
The power structure in this sense appears solid, monolithic; truly ungrazed by the
crisis, and ferociously determined not to cede an inch to anything or anyone
challenging it. That is evident. The only way out is to break the chokehold all around,
1) by reforming dramatically the schooling establishment and 2) by breaking away
from the Euro and re-bestowing on each partner its own monetary sovereignty. Easier
As for the Euro and the concomitant state of academic economics, it appears like a
full-on colonizing pincer maneuver: on the one hand you have the strait-jacket of the
Euro, on the other, in the halls of discourse, you have economic curricula entirely
dominated by American rhetoric. Take the case of economics departments in the
Latin countries: Spain, Italy or France. The particular configuration prevailing in
these countries, which anyway is pretty much the same as everywhere else, entails a
contingent of instructors rolling on the mystique of their (worthless) US-stamped
said than done, of course. Spain, indeed that otherwise wonderful country, with its
fifty-percent youth unemployment rate, its reckless real estate bubble, and US-cloned
universities is yet another pathological case in point of the present European
debacle
L.S.: One final question. You are calling for a radical monetary reform.
Why so? And how does your model look like?
with one another in one extensive, brotherly and cooperative alliance, all over the
students, who are drilled to maximize utility functions without having the faintest
world; and the means of payment to move it all: perishable money. (10)
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L.S.: Thank you very much for taking your time, Mr. Preparata!
http://www.guidopreparata.com/chpg/Of%20Money.pdf
G.P.: My pleasure.
(7) See David Marsh: Der Euro: Die geheime Geschichte der neuen Weltwhrung,
Murmann Verlag, 2009, page 203.
Further reading:
(8) David McWilliams: Lets talk about Germany, published May 7, 2012, online
here:
2. For newcomers to Veblen, his indispensables to cite just two titles would be
The Theory of the Leisure Class (Macmillan, 1899), and Essays in Our Changing
Order (posthumous collection of essays, The Viking Press, 1934).
http://www.davidmcwilliams.ie/2012/05/07/lets-talk-about-germany?
utm_source=Website+Subscribers&utm_campaign=a3676e309907052012&utm_medium=email
Sources:
(9) J. S. Kim: Inside the Illusory Empire of the Banking Commodity Con Game,
(1) Compare Guido Preparata: Conjuring Hitler: How Britain and America made the
Third Reich, Pluto Press, 2005, page xix.
(2) Carroll Quigley: Tragedy and Hope: A History of The World in Our Time,
Macmillan Company, 1966, page 324.
(10) For further details see Preparatas essay On Money, Heresy and Surrender Part
(3) For the historical fact that the Allied Powers were not reluctant to make business
as usual before and during World War II with Nazi Germany, compare the history of
the Bank for International Settlements in Basel, Switzerland, in Charles Highams
Trading with the Enemy. The Nazi-American Money Plot 1933 1949, iUniverse
Inc., Lincoln, 1983, 2007, pp. 119, Chapter 1: A Bank for All Reasons.
(4) See for instance Eric Lichtblau: Nazis Were Given Safe Haven in U.S., Report
Says, published in The New York Times on November 13, 2010 under:
http://www.nytimes.com/2010/11/14/us/14nazis.html?_r=1&emc=eta1
(5) Compare Peter Dale Scott: The Road to 9/11. Wealth, Empire, and the Future of
America, University of California Press, Berkeley, 2007, page 12, and Peter Dale
Scott: American War Machine. Deep Politics, the CIA Global Drug Connection, and
the Road to Afghanistan, Rowman & Littlefied, Lanham, 2010, pp. 163 164.
(6) See Guido Preparata: On Money, Heresy and Surrender Part I, online here:
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