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The Business As Usual Behind The Slaughter | Lars Schall

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The Business As Usual Behind The Slaughter | Lars Schall

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http://www.plutobooks.com/display.asp?K=9780745321813&,

The Business As Usual Behind The Slaughter


In this exclusive interview for Asia Times Online, the economist Guido
Preparata highlights the history of the first half of the 20th Century from
a rather unusual perspective. He shows how the Anglo-American policy

and The Ideology of Tyranny: The Use of Neo-Gnostic Myth in American Politics
(Palgrave Macmillan, 2011) see:
http://us.macmillan.com/theideologyoftyranny/GuidoGiacomoPreparata.

was designed right from the beginning to eliminate Germany as an


obstacle to Western domination aspirations. The result: a division of

From 2000 to 2008 Preparata was an Associate Professor of Political Economy at

Eurasia along a specific major fault line. Later on, Preparata also talks

the University of Washington, USA. Moreover, he worked as a research associate at

about critical aspects of the current state of affairs in global finance,

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

history, not economics.

Bank of Italy. In 2005, as a visiting professor of economics and Fulbright Scholar at


the University of Jordan, in Amman, he has conducted research on Political Islam,

By Lars Schall

terrorism and Islamic economics. At present he serves as a lecturer in criminology

The following exclusive interview was published at ASIA TIMES ONLINE under this

at Kwantlen Polythechnic University in Vancouver, Canada.

link:

His own website can be found here: http://www.guidopreparata.com/.

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

(USC, Los Angeles, USA).

also as an anti-war, anti-imperialist treatise. I somehow thought that if we debunked


one by one the most militant myths of Liberal imperialism the sudden and allegedly

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

made the Third Reich (Pluto Press, 2005) see:

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

American fraternities, whose routine is to incite indigenous monsters to

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

insufferable conspiracy theorist.

common with the perception of the general population, particularly in


Great Britain and the United States?

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

L.S.: If one does accuse you of being a conspiracy theorist or a

household during the late stage of the Cold War; it has taken me thirty years to detox

revisionist, what do you reply to those critics?

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.

remember once hearing a rant on Italian TV by some mainstream intellectual who


was pouring scorn on the paranoid imbecility of these eternal dolts who see complots
everywhere, people, that is, who cannot think in nonlinear terms while fathoming the
work of the great forces of history. There is one in every family, he concluded with a
sneer. Very funny, I must concede.
So to respond to the question: what does one reply to the accusation of being a
conspiracy theorist? I would answer the following: let the inquisitors 1) be prepared
to take paper, quill and ink bottle and refute, black on white, my thesis point by point
without the cover of anonymity, and allow me to reply, point by point; and 2) be
subsequently prepared to argue their case, facing me, in a public debate. Then let the
audience acclaim the winner.

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

policy in German history. However, at the beginning of your book you

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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exploited by the British going forward?


G.P.: If there is a spiritual future for us continental Europeans who believe not in
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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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L.S.: Is Mackinders concept still relevant today?


G.P.: Of course, the agenda still stands, unaltered: just look at the ongoing
deployments of NATO (Northern Africa, Middle East, Persia, Central Asia, China,
and, as always, Eastern Europe and Russia: viz. the late missile controversy). This is
the age-old strategy of the British Empire, pure and simple. Very littles changed.
NATO, quite obviously, is the chief aggressor, not the so-called rogue nations. But half

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

believe that it is the constant victim of plots hatched by savage, fanatical

tying Russias fate to its own by underwriting the czars debt. But, again, some kind of

brown/yellow people. Nonetheless the dynamics are subtler.

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

London School of Economics stepped up on the scene with a remarkable

grandstanding and televised bluster, without which the Anglo-American elites could

geopolitical concept. What was this concept and why is it important to

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,

imperial spirit, so to speak.

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

inspired by Mackinders concept?

resulted partly from strange detours for instance, caused by terrorists.


G.P.: Its a confounding issue, I cannot say, I doubt it. In any event, it was the triumph

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?

twice in a row, most perfectly the second time around.


G.P.: From Gavrilo Princip (the Black Hand in Sarajevo) to these bogus Islamists by
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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

were heavily influencing important events in Russia. Which of those

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

intelligent, and death-prone. S/he is by definition, again, an expendable: or, more

involved, please?

specifically a manipulable mediocrity. These useful idiots may come at certain

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

weapon of the voiceless, but the very opposite.

spontaneous and wonderful, according to the Lenin-revering dinosaurs of western

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

enough to step into that trap?

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

cursed the whole of Europe ever since. A tragedy.

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

massive, torrential, relentless and extraordinarily abiding mythologizing effort, have


come to lose all adherence to their historical, physical existence. And, deep down,
Keynes was a mask of such fanatical vanity that this kind of modern sanctification
must have been precisely the type of goal he had been striving to secure for his entire

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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

Discursively I mean propaganda-wise Keynesianism is (or used to be) the sort of


grand shibboleth that is systematically used and leveraged whenever the speaker
needs to strike the Liberal pose. In other words, when you wish to appear as the

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.

sober, reasonable, competent, sharp and compassionate moderate, you begin to


envelop yourself in Keynesian verbigeration: you start with, as a Keynesian, I should
say that, and then ~to impress upon the audience a comforting image of your
expert and humane knowledge~ you go on dropping around abstruse nonsense
such as the liquidity trap and/or the investment multiplier and the incontournable
deficit spending.
The objective of this standard psychical charade is to convey to those around you that:
1) quite evidently you understand perfectly and technically what is being discussed
(when, in truth, you dont); and 2) most critically, that you are a well-bred bourgeois
that is possessed by no indecorous whim to challenge authority, but that you
nonetheless have always taken a deepest and purest interest in the fate of the poor
little folk hence, keynesianally, you will always say that a little deficit-spending
(plus a tad of inflation) would surely relieve the wretched charwoman. In this

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

of toughness, competition and the naturally self-regulating markets presently

book The Economic Consequences of the Peace the key to understand

overburdened by the mad stupidity of the Socialists. Simply said, the Keynesian

what was happening in Germany afterwards. Could you elaborate on this,

stance is confected to play good cop when the economy falls on black days: the

please?

Keynesian is the leftist in good-standing expected to deplore the avidity of bankers


and to invoke the sanative power of the State to redress the ravages of corporate
abuse. It sounds and looks good, but it neither solves nor explains anything.

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

citation of conspicuous consumption without truly knowing what stood behind

pedantic character who knows everything without understanding anything thereof.

those two words.

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In his review of Keyness post-Versailles book, Veblen foresaw the coming of a

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

unconscionably extortionary reparations, which is what Keynes was praised for

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.

forthcoming leader, a chilling vision of Hitler himself) twenty years before it


happened.

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

that seeks redemption / salvation / metempsychosis in some kind of eighth realm

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

should be taken very seriously, I think.

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

(whatever that truly signifies; I am no initiate, alas).

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.

is Walther Rathenau (and by the way, one of my favorite Germans of all-

L.S.: The Weimar Republic for its part is inextricably linked with the

time). Why was he a tragic figure indeed?

hyperinflation of 1919 to 1923. What were the singular circumstances of

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,

that hyperinflation, and why is it very unlikely that at least a


hyperinflation la Weimar will ever happen again?

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

Versailles, and is eventually eaten alive by it.

exposition of this episode by denying in the most categorical fashion that there could

L.S.: Rathenaus name is inextricably linked with the Treaty of Rapallo.


How did that treaty came into existence and what content did it have?

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

natuerlich (of course), cheap conspiracy theory.

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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, was caught red-handed, funding the Hitlerites, by a US Senate investigation.


To return to the hyperinflation, the joint effect of shortening the debts maturity
(easily convertible into cash on short notice) and capital flight caused/primed the

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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

first of a very Hollywoodesque three-act structure: a) Pre-1923, b) The Dawes Bailout,

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,

acting in concert, by secret agreements arrived at in frequent meetings and

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

considering how deeply I love and admire that nation.}

Settlements in Basel, Switzerland, a private bank owned and controlled by the

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.

Whats your take on this?


G.P.: Yes, a disquieting chapter, which has exercised the minds and pens of scores of
conspiracy theorists. The Owen Plan is not that important in that it lasted a mere year
and a half: it was annulled by the Crisis. As for the erection of the BIS as the mother
apex of a giant network of central banks, each one controlled by the banking brethren

L.S.: Who were the winners of the Weimar hyperinflation?

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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folders of the Bank of England which contained information on the shareholders of


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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,

and some kind of deeper psychological conditioning, keep an air of obsequious

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

prevails there is no future for a reformed world.

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

financial investments? Was the German rentier class benefitting big


time from the Great Depression?

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

time). In essence, through an endless strategizing effort punctuated by frequent and

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

diplomatic channels, Norman managed to feed the German boom read:

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,

subaltern ally in this British operation of that there is no doubt.

again, is of help: it will be a new radicalized regime that will be swayed against

L.S.: Which counterproductive role played gold in the 1920s / 1930s?


G.P.: Complex question, hardly exhaustible in a few lines. Let us say that a particular
organization of the gold standard was used as a device, or rather, it was the economic
device employed to steer the world along a particular direction. The targeted and

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?

programmed allocation or withdrawal of money is clearly capable of precipitating a

G.P.: The German absentees, of course, especially those with international

variety of political outcomes. Speaking of counterproductive, the art of withdrawing

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.

came to endorse these emergency bills-of-exchange. It is a basic loan circuit.

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

Schroeders and Brown Brothers Harriman. Why so?


G.P.: Schroeders happened to be 1) one of the oldest banking houses in London
handling Anglo-German high-level financial relationships, and one of the few
privileged institutes that, possibly because of this role, 2) had direct, institutional
access to the directorate of the Bank of England. As for Brown Brothers Harriman (in
whose London subsidiary Norman had indeed begun his banking career), I dont quite
recall what brought it deep into the financing tangle of the Nazis, possibly its strong
ties to the City. As mentioned, it was through one of its outfits that Prescott Bush, the
father and grandfather of the 41st and 43rd presidents of the US, conveyed money to
Hitler via Rudolf Hess, if I remember correctly. This he did not in the name of some
kind of fascist affinity, as some Leftists have foolishly contended of late, but as (a

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

L.S.: Related to the rearmament of Germany, the Nazis worked hand in

the ground in the forthcoming conflict conflict for which the Germans had been well

hand with Anglo-American financial interests, for example in connection

supplied by the Americans, under British politico-financial direction, thanks to the

to the German Steel Trust, which produced half of the steel that was

Dawes investment boom of 1924-1929.

needed by the German war machinery. Those financial interests also

L.S.: When Hitler came to power, he worked very closely with Hjalmar
Horace Greeley Schacht. Schacht introduced a new form of money

supported I.G. Farben in fact, both things were actually inter-linked


from the financial side of the equation. Why is this significant?

creation by artificial credit that served as a medium for the creation of

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.

G.P.: The Mefo-Wechsel was variation on the general Work-Creation

L.S.: Would it have been possible for Hitlers Germany to conduct the war

(Arbeitsbeschaffung) theme orchestrated at the Reichsbank under Hjalmar Schacht.

without a willing supply of raw materials such as petroleum and other

To jump-start the anemic economy, the State paid commissions for public works with

strategic materials from abroad?

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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months if they would have attacked Germany at its Western borders?

is, it finds a way to own it entirely itself

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

train tracks that lead to Germanys extermination camps in the occupied

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

information of what was going on there. Can you give me an answer to

never struck. So

this haunting question?

L.S.: Even though the Soviet Union also violated the integrity of the

G.P.: Haunting, indeed. I do not know.

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

as usual at the BIS as if there was no global conflict going on between

on two fronts. For three years the Allies let the Western border sleep, why? The big

them. (3) What does this tell us?

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

L.S.: To talk in terms of chess: was the castling between Neville

as if the theatrics of the Cold War had been launched already in the final stages of

Chamberlain and Winston Churchill in May 1940 a real change of British

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

G.P.: He acted as though he thought he had an agreement with Britain: Eurasia to


Germany, the seven seas and the rest of the world to Britain. It is indeed mindboggling how Germanys General Staff could have fallen for such a Gargantuan deceit.
In principle Anglo-America, which is a maritime imperial league (buttressed by

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

minimizing, exculpatory arguments of patriotic archivists, which justify the practice

and legacy of Nixon are in this regard crucial, as is his demise through Watergate.

of importing Nazis into the US as a comprehensible reaction against the vicious

There follows the uncertain quinquennium of 1974-1979 a period, as said, of

threat from the SovietsThe usual rhetorical platitudes. Per se, this saga does not

absolutely central significance during which the forefathers of globalism the

interest me a great deal. By 1945, Nazi-fascism as it had risen in the previous two

Democrats of the Trilateral Commission attempt, in vain, to salvage the situation by

decades, whatever it strangely was, had vanished from the spiritual space. Whatever

attempting to create the global order in the cumbersome presence of a moribund

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).

L.S.: Given the support of some certain Anglo-American financial

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.

States. What is your opinion?

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

gears and switched to the current purposeful procedure of inflating speculative

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

understand this essential third-act of the 20th century power-play.

engineered financial expansions/ implosions.

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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quinquennium of 1982-1987, marking the beginning of an era, Yuppyism: sparked


under Reagan, it was eventually daisy-chained to Alan Greenspans great dot-com
bubble of 1994-2001. This last, too, a defining epoch, which is still conditioning us,
rose to feature the sublime absurdity of the IPO of the internet company, i.e. the
booster fire-sale of virtual outfits, such as Google, and now, the even more

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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

preposterously inconsistent and moronic Facebook things devoid of any


economic tangibility. By the time the dot-com was losing steam in March 2001, not to
lose momentum, the financial markets began pumping real estate, which, as a
proximate, diffusive effect of the dot.com bubble, had already begun to overheat.
There followed another mini-cycle of 5 years, driven in part by the subprime sellout,
and, then, crash.

shortcomings of its construction, or is the crisis being manufactured for


an ulterior motive?
G.P.: French economist Alain Cotta explained the Euro-set-up very well in a recent
book (Sortir de lEuro ou mourir petit feu, Plon, 2011). The Euro is as un-European
as could be: it is evidently the brainchild of Anglo-American interests. The intent, as

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

ever, is to constrict Europe financially so as to render it politically incapable of


striking out on its own, and eventually asserting itself once more as the chief
continental rival.
The idea of the Euro is as follows: first, assign the lead to Germany as chief partner /

redemption clause was eventually broken by Americas loss of manufacturing


competiveness. Thereafter, in order to preserve Americas capacity to pay for empire
by printing dollars, Nixon set out systematically to browbeat industrial rivals with the
joint threat of devaluations, protectionism, and price wars. The vicissitudes of the
seventies chronicled the tortuous, thorny sup-optimality of such a progression, whose
unmanageability under Carter became such that, as said, at the turn of the new
decade, the system was entirely overhauled: de facto, America came to dismantle once
and for all its once-glorious manufacturing system, all the while converting itself into
a full-fledged service economy, turbo-driven by finance.

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,

(!). Eh bien, justement.

and in the event of a (liberating) Euro break-up, Europes traditional geopolitical

L.S.: The agreement of Germany to enter the monetary union was


achieved among other things by the threat of Francois Mitterrand that a

rivals would be intent, as ever, to balkanize the region as much as possible.

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

(The Euro) related to the EU summit of December 8, 1989 in Strasbourg

sort of Socialism, or rather Corporatism/Fascism? In other words, are

(a few days after Helmut Kohl had published his 10-point plan for the

Mussolinis words of interest here:

reunification of Germany). (7) Was there a time bomb laid by establishing


a common monetary policy for different developed economies

Fascism ought more properly be called corporatism because it is the perfect merger
of power between the corporation and the state.

(culminating in the accession of Greece) that could be brought to an


explosion at any time?

G.P.: None of these things. Fascisms corporativismo was something altogether

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

over a gradual privatization of public-functions, a sweeping commercialization of all

Germanys role in it:

spiritual endeavors (higher learning and the arts), and a virtual monopolization

It wants to do with banks what it couldnt historically do with tanks. It wants a


Europe that looks and feels democratic, but in which Germany really rules the roost
and makes the final decision in all the big calls. This it will achieve by financial
dominance. (8)

(corporatization) of all economic activity. The combined impact of this insectifying /


privatizing / monopolizing devolution has so indentured and enfeebled the nations
middle-class as to have transformed American society into a pervasively barbarized
termitary with the highest crime, brutality, and incarceration rates of the postindustrialized world.

Do you think this is true?

One of the prominent cultural (viz. devotional) derivatives of such a disquieting

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

captive. So, no, I would disagree with this contention.

slasher/dismemberment horror (the Saw saga), an avalanche of porn of the most

L.S.: Do you see the possibility that, if the Eurozone and EU fail to

industrialized holocaust as well as a crass pulp-mythologizing of ancient Sparta or

integrate, Germany and France will go their separate geopolitical ways,

Imperial Rome cut for semi-illiterate audiences. In its main outlines, Americas

with Germany gravitating more into the BRICS orbit?

present socio-economic and cultural model is to be analyzed in depth so as to prevent

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

Game all over again.

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

L.S.: One critical aspect of the wars that we experience is to me that

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

especially to my (more objective) outsiders eyes. It really made me feel as though I

that Smedley Butler was talking about) insofar for example:

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

L.S.: Does the financial crisis were in enhance this development?

appropriations, the greater the profits are for bankers. (9)

G.P.: No, the crisis is just a setback.

Isnt it therefore reasonable to expect much more of that business model

L.S.: Is the austerity meme of today a repetition of the Bruening program


before Hitler came to power?

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

L.S.: Which function plays the free press in this?

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)

align themselves according to an established set of grooves in view of whatever

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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

heart something which we might discuss on a future occasion.

publishing record in a series of journals, themselves hierarchized by a scale of


prestige, which is ultimately determined by the most powerful American associations.

L.S.: Is the science of economics in a profound crisis of its own?


G.P.: The state of economics as a discipline and its academic treatment would require,
per se, a separate conversation. In the past decade, a small part of the profession has
sort of rebelled by founding a so-called heterodox sub-branch. It is a positive
development, whose course I have followed sporadically of late. We would need a
similar movement in all fields of the social sciences.

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?

PhD and/or on their American connections, standardized textbooks all of them

G.P.: Free associationism of free producers gathered in free communes, federated

originating in the Ivies (Harvard, MIT, Columbia, Cambridge, etc.); lobotomized

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

1. For the Veblen review, see here

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.

published at The Underground Investor on October 19, 2010 under:


http://www.theundergroundinvestor.com/2010/10/inside-the-illusory-empire-ofthe-banking-commodity-con-game/

(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

II, online here:


http://www.guidopreparata.com/chpg/Of%20MoneyII.pdf

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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