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.
coincidence that the purported demise of the Soviet Union began at
the end of the 1980s to coincide with the admission of the Soviet
Union into the World Bank/IMF club. According to the World Bank's
website: It was only after radical changes had been made in the
country's policy in the late 1980s that the Soviet leadership began to
show interest in establishing ties with the World Bank and the IMF.
The meeting of the Group of Seven in London in 1991 resulted in the
admission of the Soviet Union to these international organizations as
an associate member. (12) Rather than a change of policy, this was
actually putting the same old policy into high gear. Senior oligarchs
in the communist party and the KGB simply stole the country's oil
and gas industries during the economic chaos of the 1990s. More of
Russia's assets are now open to foreign buyers. Witness BP's recent
deal to merge its Russian oil assets with TNK, a big private oil
company jointly owned by billionaires Mikhail Fridman and Viktor
Vekselberg. The BP deal gives the combined company an enterprise
value of around $18 billion. Russia now has one of the largest
number of billionaires in the world and possibly the highest
billionaire-to-GDP ratio in the world according to Forbes Magazine.
(13) At the same time Royal Dutch / Shell announced a $15 billion
investment in Russian gas 34 The Police State Road Map (March
2005 Edition) [Link]
 production and a gas pipeline to northern Europe. (14) In
his book Globalization and its Discontents former World Bank chief
economist, Joseph Stiglitz, describes how the privatization
programme in Russia led to a robber baron economy and a
catastrophic decline in GDP. Surprisingly, Stiglitz views this as yet
another sorry mistake by an ideologically motivated World Bank/IMF.
By 1992 $50 billion in loans and aid from various western sources
rained down on the former Soviet states only to disappear without
trace. In 1998 a Group -of -Seven/ IMF meeting authorized a $22
billion bailout. In 1999 it was discovered $20 billion had been stolen
by Russian officials. (15) Amnesty International currently has a
major campaign for basic human rights in Russia. Torture is still
institutionalized, anyone, even a child, who is taken into police
custody for questioning is at risk of torture and ill-treatment.
Methods of police torture commonly reported include beatings,
electric shocks, rape, the use of gas masks to induce near-
suffocation, and tying detainees in painful positions. Up to a million
men, women and children are in prisons and pre-trial detention
centres in the Russian Federation, many are held in conditions that
amount to cruel, inhuman and degrading treatment. Conditions are
particularly harsh in the pre-trial detention centres owing to chronic
overcrowding. Cells are filthy and pest-ridden, with poor lighting and
ventilation, and contagious diseases are rife (over 100,000 inmates
have tuberculosis). Tens of thousands of children in Russia are
languishing behind bars. Children also suffer torture and ill treatment
in pre-trial detention centres and prisons. Since coming to power,
Vladamir Putin has recently strengthened the FSB, the old internal
security arm of the KGB, inhibited free speech, pursued politically
motivated persecution of businessmen and pursued a four year war
of aggression in Chechnya involving substantial atrocities against
civilians. (16) CHINA The communist revolution in China was also
backed by Wall Street. In 1946, The American Government imposed
an arms embargo on the Nationalist Government when it was on the
verge of defeating the communists. Congress voted to send millions
of dollars of arms to the Chinese government but the aid was
deliberately delayed for months. When it did arrive, the rifles didn't
have any bolts in them and were useless. (i7) China joined the World
Bank/IMF in 1980. By 1996, it was the largest recipient of World
Bank loans. With Western dollars, China has purchased
powergenerating equipment, oil-field exploration, fleets of jumbo
jets, steel mills, satellite communications systems and huge amounts
of high-tech military hardware. (is) Three years ago, Bill Clinton
authorized Donald Rumsfeld's company ABB Inc. to sell two light
water nuclear reactors to North Korea. (19) Starting in 1996, Russian
and Chinese military units began to purchase U.S. made super-
computers for nuclear weapons research. These super-computers
can run American nuclear bomb design software and codes with little
or no modification. They are identical to the computers at U.S.
weapons labs right down to the vendor support. (20)(2i) Despite the
fact that China has substantial trade with the West, evidenced by all
the consumables in our shops which are made in China, Amnesty
International details human rights abuses on a massive scale:
(22)The continued use of the death penalty during the ongoing
"strike hard" campaign resulting in high numbers of executions,
often after unfair or summary trials; the continued use of 35 The
Police State Road Map (March 2005 Edition)
[Link]
 'Re-education through Labour', a system which allows for
the detention of millions of individuals every year without charge or
trial in contravention of international human rights standards; the
persistence of serious allegations of torture and ill-treatment within
China's criminal justice system, including police stations; and
increasing arrests and detentions of Internet users or so-called
"cyber-dissidents" in violation of their fundamental rights to freedom
of expression and information. Joseph Stiglitz states that China
began its transition to a market economy in the late 1970s(23) but
the one-child policy, first adumbrated by Deng Xiaoping in 1979, was
in place nationwide by 1981. The 'technical policy on family
planning', still in force today, requires IUDs for women of
childbearing age with one child, sterilization for couples with two
children (usually performed on the woman), and abortions for
women pregnant without authorization. By the mid-eighties,
according to Chinese government statistics, birth control surgeries-
abortions, sterilizations, and IUD insertions-were averaging more
than thirty million a year. Many, if not most, of these procedures
were performed on women who submitted only under duress. (24)
CONCLUSION The Western cartel has supported the bloodiest
regimes in human history all in the cause of financial globalization
and the New World Order. The next chapter shows that the same
game has been played in developing countries throughout the world.
Chapter 4 End Notes 1. UC Atlas of Inequality. 1999 statistics of GNP
per capita. See [Link] 2. Hernando
De Soto, The Mystery of Capital, (New York: Basic Books, 2000). See
see also the article by Dr Michael Coffman, Why Property Rights
Matter on Discerning The Times website at
[Link] 3. De Soto, op
cit., p. 6 4. G. Edward Griffin, The Creature from Jekyll Island,
American Media, Fourth Edition, 2002, p. 295 5. Anthony C. Sutton,
Wall Street and the Rise of Hitler, GSG and Associates, 1976, p. 93 6.
Griffin, op cit., pp. 285-6 7. Sutton, op cit., p. 170 8. Griffin, op cit.,
p. 274 9. Ibid p. 292 10. Ibid pp. 296-299 11. Ibid p. 303 12. The
World Bank Group in Russia, The World Bank Group. 36 The Police
State Road Map (March 2005 Edition) [Link]
 See [Link]
ECADocBvUnid/A729CBDBA81E84EF85256C45005D369F?
Opendocument 13. Paul Klebnikov, Out of Russia's ashes— treasure,
Forbes Magazine, 17 March 2003. See
[Link] 14. Royal
Dutch/Shell and BP expand to Russia, Chemical Newsflash,
sponsored by BASF AG, 24 June 2003,
[Link] 15.
Griffin, op cit., pp. 129-130 16. Amnesty International briefing on the
human rights situation in the Russian Federation. See
[Link] 17. Dr. Stanley
Monteith, The Brotherhood of Darkness, Hearthstone Publishing,
2000, p. 20 18. Griffin, op cit., p. 301 19. Randeep Ramesh,7/?e two
faces of Rumsfeld, The Guardian, London, 9 May 2003. See
[Link] 2763, 952289, 00 .htm I
20. Charles Smith, Brokering our own demise, WorldNetDaily, 30
Novemberl999. See
[Link] ID= 20542
21. Charles Smith, China and covert nuclear commerce,
WorldNetDaily, 11 May 1999. See
[Link] ID=20512
22. Amnesty International, People's Republic of China: Continuing
abuses under a new leadership - summary of human rights
concerns, 1 October 2003. See
[Link]
open&of=ENG-CHN 23. Joeseph Stiglitz, Globalization and its
Discontents, Penguin Books, 2002, pp. 117-118 24. Steven W.
Mosher, President Population Research Institute, China's One-Child
Policy: Coercive from the Beginning. Testimony Submitted to the
International Relations Committee of the U.S. House of
Representatives for the Hearing on "Coercive Population Control in
China: New Evidence of Forced Abortion and Forced Sterilization," 17
October 2001. See [Link] 37 The
Police State Road Map (March 2005 Edition)
[Link]
 Chapter 5 LESSER DEVELOPED COUNTRIES 5.1
EMPOWERING THIRD WORLD GOVERNMENTS AFRICA Mr Ian
Smith, Prime Minister of Rhodesia 1964-1979, often said: "we were
never beaten by our enemies - we were betrayed by our friends".
The West essentially promised white leaders in South Africa that
they would be allowed to continue practicing apartheid if they would
stop arming Rhodesia in her war against communism. Between 1979
and 1980, Rhodesia fell into Marxist dictatorship under Mugabe and
had its name changed to Zimbabwe. (i) The World Bank provided
loans to Mugabe up until May 2000.(2) This is not an academic issue
since millions face starvation because of Mugabe's Marxist policy of
seizing the nation's farms. Ominously, Mugabe has turned to
communist China to run farms in Zimbabwe. (3) In the 1980s the
world saw starving children in Ethiopia, but what they did not realize
was that this was a planned famine. The Marxist regime of Mengistu
Haile Mariam undertook nationalization of agriculture and massive
population resettlement program modeled on Stalin and Mao's
starvation programmes in the 1930s and 40s which killed millions.
Meanwhile the World Bank continued to send Mengistu millions of
dollars, much of it intended for the ministry of agriculture
undertaking the resettlement programme. (4)(5) The Wall St.
Journal recently reported on a study by the The Free Africa
Foundation which concluded that, In country after country in Africa,
there has been no accountability in the use of World Bank loans...
Billions in World Bank loans have been embezzled in Africa and
rarely anyone is held accountable and prosecuted. (6) It comes as
no surprise then that by its own admission, the World Bank's
purported policy of strengthening African free market economies by
lending $50 billion for 'Structural Adjustment programs' and other
projects over the past thirty years has been an abject failure. That's
because their real purpose was the exact opposite: The destruction
of the property rights and the creation of socialist dictatorships.
What else could possibly have happened after handing over $50
billion to undemocratic governments with no accountability? Given a
political system that is based upon a patronage system and
governments run by uniformed bandits, the commitment to reform is
almost non-existent as genuine economic reform would be politically
suicidal. The result is a 'reform charade,' where "reforming"
governments take one step forward and three steps backward. (7)
The Bank's own reports in the 1980s revealed that it played a major
role in nationalizing the development process throughout the Third
World. Regarding these so-called harsh conditionalities imposed by
the structural adjustment loans, a 1985 confidential bank report by
leading development experts concluded that 'the SAL's seemingly
hard and all-encompassing conditionality is largely illusory'. 38 The
Police State Road Map (March 2005 Edition)
[Link]
 The bank and some proponents of foreign aid claim that a
wave of privatization swept the Third World but actually 'privatization
was almost all talk'. World Bank loans either go directly to the
recipient government or must be guaranteed by the government. So,
by inevitably increasing the politicization of Third World economies,
World Bank aid was the economic tranquilizer dart which created a
weaker domestic market for the foreign multinationals to feed on.
(8) LATIN AMERICA By 1982 almost every Third World government
was running behind on its payments and Latin America was no
exception. Over the next seven years, multibillion dollar bailout
packages failed to stem the economic decline. That's because they
were used to build cumbersome nationalized industries at the
expense of the private sector. For example, the western banks
funded large government run companies such as Petroleo Brasilerio
S.A. in Brazil and Petroleus Mexicanos in Mexico. By 1990 these
companies were failing miserably and dragging the rest of the
economy down with them. Brazil was unable to produce enough
petrol and Mexico became a food importer. Brazil is now controlled
by the military and government run companies consume 65% of all
industrial investment. Exactly the same process brought Argentina's
economy to its knees. It had an expanding middle class until its
government became the recipient of massive loans from the World
Bank and U.S. commercial banks during the 1980s. By 1989 inflation
averaged 5000% and thousands of corporate bankruptcies followed.
Government figures showed that in 2002, about 100,000 people
dropped out of the middle class each week to become the new poor.
A country that only 10 years earlier had Latin America's highest
standard of living was now on a level with Jamaica; half of
Argentina's 37 million people lived below the poverty level. The
Government had subsidy programmes for about 2 million
malnourished Argentines, but millions more got nothing. Some
subsisted by scavenging through garbage. (io) (ii) Furthermore the
West has supplied physical weapons for military governments to
spend their free money on. Britain is the world's second largest arms
exporter after the U.S. with 20% market share. (12) A U.S. military
training school, the School of the Americas, has trained many of the
worst human rights violators and dictators in various Latin American
countries, including Roberto D'Aubisson from El Salvador and Manuel
Noriega of Panama. (13) ASIA Joseph Stiglitz's discussion of the role
of bankruptcy laws in the 1997 Asian financial crisis reveals how the
IMF deliberately undermined domestic property rights. Here the
bankers exploited the absence of the legal framework for
implementing trusteeships when large numbers of firms were going
bankrupt. The IMF encouraged the state to get involved in
restructuring the companies, i.e. telling them how to run themselves
instead of sorting out who really owns the firm. Countries such as
Thailand followed their advice and languished whilst Korea and
Malaysia ignored it and prospered. (14) 5.2 THE SELL OFF 39 The
Police State Road Map (March 2005 Edition)
[Link]
 By the end of the 1980s the banks had successfully
empowered and corrupted Third World governments with billions in
bank loans. Liberal democracy and the free market had been
strangled. Now for the second play: The sell off. The directive for the
sell off came from the World Bank and IMF at the end of the 1980s
as shown by World Bank documents signed by James Wolfensen and
leaked to a BBC investigative journalist, Greg Palast. The World Bank
flew in their teams who dictated their plans, an average of 111
conditions in a pre-written document, to each nation's finance
minister. If he refused he would be denied any further loans and the
life blood which had sustained his government would be cut. These
conditions included selling off the natural resources and national
industries to foreign multinationals. In the case of Argentina, they
required the nation to give up its gas water and oil to Vivendi,
Repsol, Enron and a few other multinationals. In 1988 Jeb Bush
made a call to an Argentine senator asking him to sell a gas pipeline
to Enron at one fifth of its market value. In return, a percentage of
the discount would be deposited in the senator's Swiss bank
account. The process has been called 'briberization' rather than
privatisation.(is) The Water Barons report for the Center for Public
Integrity deals in-depth with the sale of national water supplies.
"Surgery without anesthesia," was how Menem described his policies
in 1989 as he set out to make Argentina one of the world's leading
models for privatisation . Faced with rampant inflation - caused by
the banks and who were suddenly "reluctant" to make further loans
- Menem won passage of the National Administrative Reform Law,
which declared a state of economic emergency and gave him the
power to privatize public utilities by decree. As a result World Bank
money came flowing back to Argentina. On 18 Dec. 1990, the World
Bank approved a loan (a bribe) of $300 million for "The new
adjustment projects in Argentina". None applauded louder than
Santiago Soldati, a businessman and close Menem ally who would
end up as the lead Argentine partner in the privatisation of water.
Soldati later sold his interest in the water company, making a tidy
$100 million in the process. In 1993, the Government granted a 30-
year concession to run the water system to Aguas Argentinas a
consortium controlled by two French corporate giants, Compagnie
Generale des Eaux (now Vivendi )and Lyonnaise des Eaux (now
Suez). Soon after, the World Bank declared the Buenos Aires
privatisation an overwhelming success, and made it a model for
privatisation s of water that followed in the Philippines, Indonesia,
Australia and South Africa.(i6) The investigation showed that the
enormous expansion of these water companies could not have been
possible without the World Bank and other international financial
institutions, such as the IMF, the Inter-American Development Bank,
the Asian Development and the European Bank for Reconstruction.
In countries such as South Africa, Argentina, Philippines and
Indonesia, the World Bank has been advising the leaders to
'commercialize' their utilities as part of an overall bank policy of
privatisation and 'free-market' economics. (17) The World Bank
calculates that privatisation projects in developing countries in 2002
alone totaled (U.S) $24 billion .(is) Having become impatient with
the sluggish pace of progress on this issue, the World Bank launched
an internet toolkit for privatisation in developing countries, providing
on-line advice on how to sell off highways, water, waste systems,
ports, and telecoms industries!(i9) CONCLUSION 40 The Police State
Road Map (March 2005 Edition) [Link]
 When making the case for such a grand conspiracy as this,
it is helpful to call a whistleblower to the witness stand. Published in
November 2004, the book entitled Confessions of an Economic Hit
Man by John Perkins ( now a New York Times best seller) is a public
confession by an insider about the real purpose of Western loans to
developing countries. Working in a private consulting firm, Perkins
was one of the 'economic hit men' who carried out the plan detailed
in the World Bank documents. Perkins describes a classical
conspiracy between government and big business. The U.S. National
Security Agency recruited and trained the 'economic hit men' to
carry out their duties through private consulting firms and other
corporations. The beneficiaries of the conspiracy were the
international bankers and shareholders in the multi-national
corporations. Unable to repay the loans organized by the hit men,
developing countries had to surrender their national resources to
their Western creditors. What an extraordinary scam: Destroy a
country's domestic capitalism and free-markets, get it into massive
debt and then with financial gun to its head, shake it down for
everything its got. It is even more extraordinary for the fact that,
because this piracy is conducted in international waters, it isn't even
illegal! One of the questions raised in the next chapter is whether or
not these agents have been acting, to some degree, on Her
Majesty's (secret) service. Chapter 5 End Notes 1. Peter Hammond,
Not Defeated -Betrayed, Frontline Fellowship. See
[Link] mission%20reports
prayer/not%20defeated %[Link] 2. The Wall Street
Journal, Opinion, 5 August 2003 (Review & Outlook). See
[Link] 3. Andrew Meldrum,
Mugabe hires China to farm seized land, The Guardian, London, 13
February 2003. See [Link]
2763, 89442 1,00 .htm I 4. James Bovard, The World Bank vs The
World's Poor, Cato Policy Analysis 1987, pp. 4-6. See
[Link] 5. G. Edward Griffin, The
Creature from Jekyll Island, American Media, Fourth Edition, 2002, p.
100 6. The Wall Street Journal, op cit. 7. The Failure of World Bank
Programs in Africa, A Special Report by The Free Africa Foundation,
March 2003. See summary at [Link]
8. Bovard, op cit., 10. Griffin, op cit., ch's 5-6 especially pp. 103-104
and 116 11. Daniel Santoro, The 'Aguas' Tango: Cashing In On
Buenos Aires' privatisation , The Water Barons. A report for The
Center for Public Integrity, 2003. See
[Link] id =ch&.rid = 50&a id = 50
12. Brian Wheeler, How big is the UK arms trade? BBC, London, 9
September, 2003. See
[Link] 41 The Police
State Road Map (March 2005 Edition) [Link]
 13. Anup Shah, [Link], 30 October 2001. See
[Link]
.asp 14. Joseph Stiglitz, Globalization and its Discontents, Penguin
Books, 2002, pp. 117-118 15. Greg Palast, The Best Democracy
Money Can Buy. Also see Greg Palast's website for discussions of the
book at http ://[Link] [Link]/deta [Link]?artid = 12 5&row=l
. [Link] [Link]/deta [Link]?artid = 128&row=l
[Link] = 198&row=l 16. Daniel
Santoro, op cit. 17. Bill Marsden, Cholera and The Age of The Water
Barons, The Water Barons, A report for The Center for Public
Integrity. See [Link] id
=ch&rid=44&a id =44 18. Private Participatiion in Infrastructure
Project Database, The World Bank Group. See
[Link] 19. Toolkits, The World Bank Group.
See [Link] 42 The Police State Road Map
(March 2005 Edition) [Link]
 Chapter 6 PRIVATISATION IN THE WEST 6.1 PUBLIC-
PRIVATE PARTNERSHIP In Britain, privatisation started under
Margaret Thatcher at the beginning of the 1980s, before the World
Bank imposed the same policy on lesser developed countries. Even
now, the privatisation process is far from complete, but a report in
The Guardian newspaper summarized when the family silver was
sold: Cable & Wireless: Oct 81, Amersham International: Feb 82,
Britoil: Nov 82, Associated British Ports: Feb 83, Enterprise Oil: Feb
84, Jaguar: July 84, British Telecom: Nov 84, British Gas: Dec 86,
British Airways: Feb 87, Rolls-Royce: May 87, BAA: July 87, British
Steel: Dec 88, Regional water companies: Dec 89, Electricity
distribution companies: Dec 90.(1) At the same time, Margaret
Thatcher introduced Compulsory Competitive Tendering (CCT) which
started the sell off of national and local government. John Major
renamed this Private Finance Initiative (PFI) in 1992, and the policy
has continued unabated under Tony Blair. (2) The Public-Private
Partnership (PPP) industry website boasts: 564 PFI deals with a
capital value of more than £35bn have been signed. (3). ..There has
been wide coverage on the use of PPPs in health and education, but
PPPs are being used in a diverse range of projects like helicopter
simulators for the Ministry of Defence and the redevelopment of the
main Treasury building... Chancellor Gordon Brown said in a recent
speech that "there should be no principled objection to PFI
expanding into new areas, such as the provision of employment and
training services, the renovation of schools and colleges, major
projects or urban regeneration and social housing. (4) The most
ironic PPP initiative is the 'Strategic Transfer of the Estate to The
Private Sector ' (STEPS) by the Inland Revenue (IRS equivalent). In
March 2001, it signed a Private Finance Initiative deal, selling off its
entire estate for £220 million to Mapeley Steps Ltd. a company
controlled by George Soros located in the off-shore tax haven of
Bermuda. (5) Britain has led the field in PPPs, but almost every
government in the world has been implementing the PPP model. (6)
Having firmly established themselves in Europe, Africa, Latin America
and Asia, the water companies are expanding into the far more
lucrative market of the United States. The U.S. still has publicly
owned water but that looks set to change as the French and German
multinationals are winning the battle in Congress to allow them to
take over America's aging water infrastructure.^) 6.2 THE POLICY
COMES FROM THE TOP Although the World Bank introduced
privatisation to developing countries with strong arm tactics at the
end of the 1980s, it now has an army of policy forums giving
intellectual credibility to it. The Water Barons investigation reveals
that the 43 The Police State Road Map (March 2005 Edition)
[Link]
 water companies have joined forces with the World Bank
and the United Nations to create an array of international think
tanks, advisory commissions, and forums that have dominated the
water debate and established privatisation as the dominant solution
to the world's water problems. "What we have seen during the
1990s has been the setting-up of a kind of global high command for
water," wrote Ricardo Petrella, a leading researcher on the politics of
water. The U.N. is now promoting PPP as a key component of the
United Nations' programme for sustainable development. (8) At the
same time as the World Bank/ IMF imposed its privatisation policy on
the Third World, Prince Charles launched his Prince of Wales
Business Leaders Forum. Since 1990, when he conducted his first
city conference in Charleston, North Carolina, he has amassed over
5,000 multinational and national corporations whom he works with
in setting up public-private partnerships. This is a key institution in
the globalization machine, hence its members include 65 of the
world's biggest companies. As noted in chapter two, the multi-trillion
dollar shareholdings of the British, European and American elite are
hidden behind false fronts, trusts and Bank of England nominee
accounts. (9)(io) N. M. Rothschild & Sons has guided the
privatisation process, especially in the U.K. Their website boasts:
1985 saw N. [Link] & Sons win the 'beauty contest' to advise
the British Government on the sale of British Gas. This was the most
significant piece of privatisation work to be undertaken by N. M.
Rothschild & Sons, pioneers in such business from 1971. Further
advisory roles were taken with regard to the privatisation of British
Steel and British Coal as well as the regional electricity and water
boards. It would lead to business in over 40 countries worldwide. ...
[ in 2000] the British Government appointed N M Rothschild & Sons
as financial advisers for 3G mobile phone licensing. The bank
adopted an innovative and highly successful auction process
whereby telephone companies bid for the available licences, and was
subsequently approached by other governments worldwide to
undertake similar projects. (ii) Lord Wakeham was the Conservative
Chief Whip from 1983 to 1987 and Secretary for Energy from 1989
to 1992. He authorized Enron to buy into the privatized water and
electricity systems, and then, in 1994 when he resigned as leader of
the House of Lords, he joined Enron as a non-executive director and
sat on its audit committee. Lord Wakeham had also awarded a
contract to N. M. Rothschild to advise the Government on coal
privatisation. In 1995 he became a director of N. M. Rothschild. (12)
In November 2003, Oliver Letwin resigned his directorship of N. M.
Rothschild, which he had held since 1991, to become Shadow
Chancellor of the Exchequer for the Conservative party. He is author
of the book 'Privatising the World' and has worked as an adviser to
foreign governments on privatisation. (13) Norman Lamont was the
Tory Chancellor of the Exchequer from 1990-1993. After he
graduated from university, he worked for N. M. Rothschild for eleven
years and was a director of Rothschild Asset Management. After
leaving government he became a director of N.M. Rothschild 1993-
1995.(14) Eddie George was Governor of the Bank of England from
1993-2003. After retirement, he joined the Rothschild group and sits
on the board of Rothschild Continuation Holdings A.G., the Bank for
International Settlements, Switzerland, and N. M. Rothschild . (15)
44 The Police State Road Map (March 2005 Edition)
[Link]
 SUMMARY A Western money monopoly was well
established by the beginning of the twentieth century but still
remains hidden today. The money monopoly is dynastic and
transcends national borders enabling the Anglo-European-American
elite to transfer all the world's wealth into their hands and to create
a global government under their control - a new Dark Age of global
feudalism or global fascism. Since the late 1980s, the sale of the
world's resources and industries to the international bankers has
accelerated. Now all that remains is to strip Westerners of what
remains of their property and the vision of John D. Rockefeller's
General Education Board will be fulfilled: In our dreams we have
limitless resources, and the people yield themselves with perfect
docility to our molding hands... - Fred Gates, "Occasional Paper No.
1", 1904, General Education Board So, remembering the question
put to Tony Blair of whether or not someone can become too rich,
the second section of this book examines 'the art of killing quietly'.
Chapter 6 End Notes 1. Larry Elliott and Jill Treanor, A whole world
sold on sell-offs, The Guardian, London, 22 Nov. 2000. See
[Link] 2763,401 129,
[Link] 2. Timeline: outsourcing and the public sector, The
Guardian. See [Link] outsourcing
/story/0, 13230,933819, [Link] 3. Chief Secretary to the Treasury,
Rt Hon Paul Boateng MP, 11 June 2003, Completed Projects, PPP
Forum website. See [Link] 4.
Frequently Asked Questions, Ibid.. See
[Link] 5. Stefan Armbruster, Revenue
sell-off to tax haven firm, BBC, London, 23 Sept. 2002. See
[Link] 6. PPP websites:
Canada [Link] Netherlands
[Link] Ireland [Link] USA
[Link] 7. Erika Hobbs,
Low Rates, Needed Repairs Lure 'Big Water' to Uncle Sam's
Plumbing, The Water Barons, a report for The Center for Public
Integrity. See [Link] =
54&aid = 54 8. Public Private Partnership, United Nations Economic
Commission for Europe website, Introduction. See
[Link] 9. Joan M.
Veon, synopsis of Prince Charles the Sustainable Prince. See
[Link] 45 The Police State
Road Map (March 2005 Edition) [Link]
 10. The International Business Leaders Forum website,
members section. See
[Link] 11.
N.M. Rothschild website, Timeline
[Link]
doc=articles/chistory2-l 12. Andrew Clark and David Hencke, Master
fixer who ended up in a fix, The Guardian, 30 January 2002
[Link] 11337, 64 1545, 00 .htm
I 13. Oliver Letwin, Political Profile, BBC News Online
[Link] people/newsid
1179000/11 79357 .stm 14. Lord Lamont of Lerwick, Benador
Associates [Link] 15.
Nestle, CorporateWatch
[Link]
supermarkets/nestle/[Link] 46 The Police State Road Map
(March 2005 Edition) [Link]
 Part 2 The Art of Killing Quietly 47 The Police State Road
Map (March 2005 Edition) [Link]
 Chapter 7 THE ECONOMY 7.1 THE FUNCTION OF POVERTY
The standard of living of the average American has to decline... -
Paul Volcker, Chairman of The Federal Reserve, New York Times, 18
October 1979, p.l, Volcker Asserts U.S Must Trim Living Standard.
'Money is power'. Well, to be precise, it's the gap between the rich
and poor that counts. The objective of the elite is to maintain the
capitalist structure as it is with one vital difference. There will be no
middle class in the New World Order. Under public-private
partnership, the middle class, free markets, and consumer choice
will be replaced with a neo-feudal society in which the Money Trust
dictates to an impoverished populace through a supranational
technocracy. This is international socialism, run for the benefit of the
financial elite who own the economy and control the emerging
continental Politburos. The polite name for it is 'The Third Way', but
less deferential commentators call it 'corporate fascism'. The
corporations need government to restrict consumer choice in the
market place, allowing the cartel to determine what we can buy, sell,
or even do in our own homes. The 'Third Way' is the path to Utopia
for our self-appointed philosopher kings, advocated by the likes of
Bill Clinton, Tony Blair, and Gerhard Schroder - their senior political
puppets. There is no difference between ostensibly right and left
wing political parties about the eventual destination, even if they
appear to be travelling at different speeds towards it. Real power,
then, is achieved when the ruling class controls the material
essentials of life, granting and withholding them as if they were
privileges, as George Orwell reflected: From the moment when the
machine first made its appearance it was clear to all thinking people
that the need for human drudgery, and therefore to a great extent
for human inequality, had disappeared. If the machine were used
deliberately for that end, hunger, overwork, dirt, illiteracy, and
disease could be eliminated within a few generations But it was also
clear that an all-around increase in wealth threatened the
destruction... of a hierarchical society. In a world in which everyone
worked short hours, had enough to eat, lived in a house with a
bathroom and a refrigerator, and possessed a motorcar or even an
airplane, the most obvious and perhaps the most important form of
inequality would already have disappeared. If it once became
general, wealth would confer no distinction. Such a society could not
long remain stable. For if leisure and security were enjoyed by all
alike, the great mass of human beings who are normally stupefied
by poverty would become literate and would learn to think for
themselves; and when once they had done this, they would sooner
or later realize that the privileged minority had no function, and they
would sweep it away. In the long run, a hierarchical society was only
possible on a basis of poverty and ignorance... It is deliberate policy
to keep even the favoured groups somewhere near the brink of
hardship because a general state of scarcity increases the
importance of small privileges and thus magnifies the distinction 48
The Police State Road Map (March 2005 Edition)
[Link]
 between one group and another... The social atmosphere is
that of a besieged city, where the possession of a lump of horseflesh
makes the difference between wealth and poverty. The difference
between riches and poverty is often the difference between pleasure
and pain. Orwell concluded this idea in the torture episode at the
end of 1984. How does one man assert his power over another,
Winston?' By making him suffer. Obedience is not enough. Unless he
is suffering, how can you be sure that he is obeying your will and
not his own? Power is in inflicting pain and humiliation... Progress in
our world will be progress towards more pain.(i) In The Creature
from Jekyll Island, G. Edward Griffin discusses the relationship
between 1984 and The Report From Iron Mountain: On the
Possibility and Desirability of Peace by Leonard Lewin. It has never
been established whether or not this report published in 1966 was
written by a U.S. government think tank or if it was an elaborate
political satire. On 26 November, 1967, the report was reviewed in
the book section of the Washington Post by Herschel McLandress,
which was the pen name for Harvard professor John Kenneth
Galbraith. Galbraith, who also had been a member of the Council on
Foreign Relations, said that he knew firsthand of the report's
authenticity because he had been invited to participate in it.
Although he was unable to be part of the official group, he was
consulted from time to time and had been asked to keep the project
a secret. Furthermore, while he doubted the wisdom of letting the
public know about the report, he agreed totally with its conclusions.
For the purposes of Griffin's comparison, it makes no difference
whether it is a satire. The report credits Orwell for many of its ideas
and it is a blueprint for what has occurred since. Importantly, it
agreed with Orwell's view that poverty is a prerequisite for a
hierarchical society: The continuance of the war system must be
assured, if for no other reason, among others, than to preserve
whatever quality and degree of poverty a society requires as an
incentive, as well as to maintain the stability of its internal
organization of power. The economic destruction of the world's
middle class is well advanced. Personal debt, bankruptcies, and
unemployment are soaring while investments are destroyed in the
stock-market and incomes decline. Like Manchurian Candidates, the
Western middle class have played their essential part in creating the
techno-bureaucracy of the new feudalism which will enslave them.
This chapter describes seven significant methods being used to
reduce living standards around the world. These are: 1. money
supply and taxation; 2. free trade; 3. free movement of labour; 4.
environmentalism; 5. wars; 6. the criminal justice system; and 7.
disease. 7.2 MONETARY AND FISCAL POLICY Stock cultivates land;
stock employs labour. A tax which tended to drive away stock from
any particular country, would so far tend to dry up every source of
revenue, both to the sovereign and to the society. 49 The Police
State Road Map (March 2005 Edition) [Link]
 - Adam Smith, The Wealth of Nations THE BURDEN OF
TAXATION In 1900 the combined national and local tax burden in
the U.S. was a mere 5.7% of income. By year 2000 it reached an all
time high of 33%. (2) The U.K.'s tax burden has grown from 8.5 %
of GDP in 1900 to 31% in 1963 and to a peak of 39% in 1982. It is
now around 38%.(3)(4)The E.U.'s tax burden now averages 40. 5%.
(5) The burden of taxation on middle income bracket families has
grown in line with the overall increase. In 1958 the median two-
earner American family ($68,605) paid 17.9% of its income in taxes.
In 1998 that percentage was 37.6 % in 1998. In year 2000, taxes
claimed a greater share of the median twoincome family's income
(39.0 percent) than food (8.9 percent), clothing (3.9 percent),
housing (15.9 percent), and transportation (6.9 percent), combined.
(6) The U.S now has the same household taxation levels as Britain
reached at the end of the 1970s and where they remain today:
between 35 and 40% of household income. (7) HIGH LABOUR
TAXES One of the most confounding economic trends in the United
States during the past 20 years has been the relative stagnation of
workers' real wages. One of the primary reasons for flat wages is
that taxes and other government mandates on employers have been
expanding steadily, crowding out worker take-home pay. Combined
Federal Income taxes and payroll taxes increase the average cost of
employing a manufacturing worker by 28%. (8) In Europe the
situation is even worse, but due to the rigidity of the labour market
it has caused high unemployment rather than driving wages down.
In 1970, the tax-to-GDP ratio of the E.U. was similar to America but
then it grew by 8 percentage points largely due to an expansion of
the welfare state. The tax hike was largely imposed upon labour. The
average effective tax rate on labour is about 10 percentage points
higher in Europe than in the U.S. with the exception of the U.K,
Ireland and Portugal whose rates are similar. The average effective
tax rate imposed on labour in 1997 reached 38% compared to 24%
in the U.S. This largely accounts for the high unemployment rate. (9)
THE HIDDEN TAX: INFLATION Inflation is another form of taxation.
It is an indirect tax therefore it falls as heavily on the poor as it does
on the rich. In the early stages of inflation, the business class
actually benefits from the easy credit. The government causes
inflation by going into debt therefore is one of the major collectors
of this tax. As described at the beginning of this book, the central
bank prints money for the government to borrow. As John Maynard
Keynes explained: Lenin is said to have declared that the best way
to destroy the capitalist system was to debauch the currency. By a
continuing process of inflation, governments can confiscate, secretly
and unobserved, an important part of the wealth of their citizens. By
this method they not only confiscate, but they confiscate arbitrarily;
and, while the process impoverishes many, it actually enriches
some... The process engages all the hidden forces of economic law
on 50 The Police State Road Map (March 2005 Edition)
[Link]
 the side of destruction, and does it in a manner which not
one man in a million is able to diagnose. - John Maynard Keynes,
The Economic Consequences of the Peace, 1919, Ch. 6 Alan
Greenspan elaborates: Stripped of its academic jargon, the welfare
state is nothing more than a mechanism by which governments
confiscate the wealth of the productive members of a society to
support a wide variety of welfare schemes. A substantial part of the
confiscation is effected by taxation. But the welfare statists were
quick to recognize that if they wished to retain political power, the
amount of taxation had to be limited and they had to resort to
programs of massive deficit spending, i.e., they had to borrow
money, by issuing government bonds, to finance welfare
expenditures on a large scale... The abandonment of the gold
standard made it possible for the welfare statists to use the banking
system as a means to an unlimited expansion of credit.... As the
supply of money (of claims) increases relative to the supply of
tangible assets in the economy, prices must eventually rise. Thus the
earnings saved by the productive members of the society lose value
in terms of goods. When the economy's books are finally balanced,
one finds that loss in value represents the goods purchased by the
government for welfare or other purposes with the money proceeds
of the government bonds financed by bank credit expansion. - Alan
Greenspan, Gold and Economic Freedom, The Objectivist, July 1966
(10) This new money can be expanded up to ten times when it
passes through commercial banks therefore their private borrowers
are also tax collectors as Congressman Ron Paul suggests: An astute
stock investor or home builder can make millions in the boom phase
of the business cycle, while the poor and those dependent on fixed
incomes can't keep up with the rising cost of living. (ii) The
inflationary effect of lending is exacerbated when borrowers get into
trouble and the debts are "rolled over", "re-scheduled" and
eventually "bailed out". A non-performing loan causes inflation
because the freshly printed money injected into the economy via the
borrowing corporations and individuals has not been accompanied
by a sufficient increase in production to keep up repayments. There