Executive Intelligence Review
This article appears in the November 28, 2008 issue of Executive Intelligence Review.

Brutish Empire Calls for
A New Hjalmar Schacht

by John Hoefle

[PDF version of this article]

Nov. 21—We have repeatedly warned that the Anglo-Dutch Liberal empire is using the death of the global financial system to eliminate the nation-state system and impose a global, fascist, corporatist dictatorship upon the world. One does not need inside information to see this; one merely need examine the policies being pushed by the international banking crowd and take them to their natural conclusion. The push for fascism is, to use H.G. Wells' term, an "open conspiracy."

However, it is always useful to receive confirmation of their intent from inside the enemy camp: According to reliable sources, there is an active discussion within the halls of HSBC's London headquarters of the need for a new Hjalmar Schacht.

This should not be a surprising development. HSBC is the lead bank of the Brutish Empire, and was the political force behind the rise of Adolf Hitler in Germany. And Schacht was the empire's man on the scene, as head of the Reichsbank and then, Minister of Economics under Hitler.

Schacht's role was to impose an even more brutal austerity on a German population whose standard of living had already been destroyed by the hyperinflation which resulted from the savage reparations imposed on the nation after World War I. Schacht helped create the conditions which made Hitler possible, and then helped finance the rise of Hitler, working closely with the Bank of England. Just as the bankers created Hitler in the 1930s, they are now pushing fascism again, this time, on a global scale.


Hitler was just one of the projects of the Brutish Empire. Another was Benito Mussolini, the Italian dictator who took office a decade before Hitler, then allied with him in World War II. Mussolini took the title "Duce of Fascism," a term which can be translated as either Duke or Doge of Fascism, Doge being the highest office in the Venetian system. Behind both the Hitler and Mussolini governments lay a complex of imperial financiers and corporate cartels, which used the governments to keep the people in line. The German cartels, many of which came together to form the infamous IG Farben, were actually creatures of the Anglo-Dutch Liberal system; they, like Schacht, helped finance Hitler and build his war machine for the purpose of having Germany attack Russia—having rivals fight debilitating wars against each other is a specialty of the Brits. It was only when Hitler turned his guns west toward the heart of the empire, that the oligarchs were forced to defend themselves against the monster they created.

The purpose of this corporatist movement was to eliminate the role of the nation-state as a force in world affairs, and replace it with a system run by financial houses and corporate cartels. There were fascist parties in all the major Western nations in the 1920s and 1930s, including the U.S.A., where the Morgan and du Pont interests tried to organize a coup against Franklin Roosevelt, in a plot exposed by Gen. Smedley Butler, in 1934.

The coup against Roosevelt was thwarted, and FDR led the United States and its Allies to victory over Germany and Italy in World War II. The tools of fascism had been defeated, but not its imperial core. This corporatist movement resurfaced in a big way with the 1968 Bilderberg meeting in Mont Tremblant, Canada.

At that meeting, George Ball, a senior banker at Lehman Brothers and a major figure in the Anglo-American Establishment, gave a speech outlining the need for a new structure to replace the "outmoded" nation-state. Ball called this new structure the "world company," an explicitly corporatist formulation. This "world company" would, in the view of its sponsors, take control over raw materials and other resources worldwide, allowing the empire to use them as it saw fit. Nations, it was said, were too selfish, tending to view the resources within their borders as theirs, to be used for the benefit of their own people.

Fast-forward to today, and look at the world from that perspective. This world company approach has largely been implemented, under the name globalization; nations everywhere are dependent upon the empire's financial markets for their funds, and dependent upon the empire's cartels for many of the necessities of life. Though we do not—yet—have the jackboots of Hitler and Mussolini, we do have the corporatist fascism they represented, and that system is coming to the fore under the guise of bailing out the financial system.

Debt Overload

It should be obvious to all thinking persons by now, that we cannot solve a debt crisis by taking on even more debt. All the bailout really does is transfer losses from the books of the banks to the books of the government—and thus to the taxpayer—without doing anything to increase our economy's ability to pay that debt. It does, in fact, do just the opposite, as the physical economy is further cannibalized by the demands of the bailout. We incurred this debt as a result of the decision to deindustrialize the U.S. economy, and switch to a service/finance economy; with every passing year we produce less while we spend more, making up the difference by borrowing from the rest of the world.

Wall Street financed this expansion of debt by creating an ever-wilder series of financial instruments. This process, in which debt was treated as an asset, and then that asset used as the basis to create even more assets, ad absurdum, resulting in a mountain of highly over-leveraged securities and derivatives bets which far exceeds the debt-carrying capacity of the economy. The same is true, to varying degrees, in most other countries of the world.

We are, to put it simply, flat broke, with no prospect of recovering unless we break with the failed Anglo-Dutch Liberal system and return to the time-tested policies of the American System.

Fascism, or Renaissance?

The clear intent of the Brutish Empire is to use this crisis to return the world to the way it existed before the American Revolution, a rentier-financier feudalist model coupled with the modern technology of "Big Brother." This is explicit in the call for a new Schacht, but it is also implicit, at least, in the efforts by the Bush Administration, the Congress, and the Federal Reserve to bail out the system. From the insane perspective of the financiers, the only chance they have of saving their system is to ram through a savage consolidation of the financial system into a dramatically smaller number of global institutions—giant banks, insurance companies, and a few others, which owe their allegiance to the empire rather than any nation. This would give the Anglo-Dutch Liberal empire even greater control over the issuance of credit than it now has, giving it a greater stranglehold over the peoples of the world. Credit would be largely limited to the financial institutions and the cartels of the empire, eliminating all competition, and accelerating the collapse into a new Dark Age.

The alternative, as laid out clearly by Lyndon LaRouche, is a return to the credit system established by the U.S. Constitution, in which Congress appropriates credit for infrastructure and related projects for the public welfare, and the Executive branch administers the issuance of that credit through a national bank. This method provides the optimum combination of government control over the money supply and the distribution of that credit in a manner that insures the money is used for the most productive purposes. The national bank would issue the credit to private companies via private banks, tapping the entrepreneurial spirit and creativity of the American people. Naturally, this would also require educating Congress and the citizenry in the American System, so that we can make sure Congress follows the Constitution. Were we to do this, we could lead the world into a new Renaissance.


Subscribe to EIW