The Creature from Jekyll Island

Mired in Debt

One of the most obvious characteristics of our present time is the extent to which Americans and their government have become mired in debt. Annual federal deficits have grown steadily since 1950, and the rate of growth is now in a vertical climb. It had taken 198 years for the federal government to borrow the first trillion dollars. Then, in just twelve years — mostly under the Reagan Administration — it borrowed another three trillion. By the end of 1995, after three years of the Clinton Administration, the debt had grown to about $5 trillion.

It is difficult to comprehend numbers of that size or to translate them into their effect upon each of us. $5 trillion represents about 80% of all the goods sold and all the services rendered in America throughout the entire year. If you had a stack of $100 bills 40 inches high, you would be a millionaire. $5 trillion would rise 3,350 miles into space.

By 1993, net interest payments on that debt were running $214 billion per year. That consumed about 14% of all federal revenue. It now represents the government’s largest single expense; greater than defense; larger than the combined cost of the departments of Agriculture, Education, Energy, Housing and Urban Development, Interior, Justice, Labor, State, Transportation, and Veterans’ Affairs.

These charges are not paid by the government; they are paid by you. You provide the money through taxes and inflation. The cost currently is about $4,500 for each family of four. All families pay through inflation but not all pay taxes. The cost to each taxpaying family, therefore, is higher. On average, over $5,000 is extracted from your family each year, not to provide government services or even to pay off previous debt. Nothing is produced by it, not even roads or government buildings. No welfare or medical benefits come out of it. No salaries are paid by it. The nation’s standard of living is not raised by it. It does nothing except pay interest.

Furthermore, the interest is compounded, which means, even if the government were to completely stop its deficit spending, the total debt would continue to grow as a result of interest on that portion which already exists. In 1995, interest on the national debt was already consuming 57% of all the revenue collected by income taxes. At the present rate of expansion, it will consume 100% by the year 2010. That includes corporate taxes. Interest will consume 100% of our personal income taxes much sooner.

Amazing isn’t it? Without interest on the national debt, we would save enough to reduce corporate taxes and eliminate personal income taxes altogether. Unfortunately, under present policies and programs, that is not going to happen, because Congress does not live within its income. Many expenses are paid, not from taxes, but from selling government bonds and going deeper into debt each year. So, even though we could save enough to eliminate personal income taxes, it would not be enough. The government would still go into the red to keep up its present life style. However, if a reduction in the size and scope of the bureaucracy were accomplished at the same time, then personal and corporate income taxes could be entirely eliminated, and the government would have an annual surplus.

The Doomsday Mechanism

Unfortunately, the locomotive is running in the opposite direction. The size of government is growing larger, not smaller. There are more people working for government than for all manufacturing companies in the private sector. There are more bank regulators than bankers, more farm-bureau workers than farmers, more welfare administrators than recipients. There are more citizens receiving government checks than there are paying income taxes.

By 1996, welfare benefits in 29 states were higher than the average secretary’s wage; and in 6 states, they were more than the entry-level wage for computer programmers. When it is possible for people to vote on issues involving the transfer of wealth to themselves from others, the ballot box becomes a weapon with which the majority plunders the minority. That is the point of no return, the point where the doomsday mechanism begins to accelerates until the system self-destructs. The plundered grow weary of carrying the load and eventually join the plunderers. The productive base of the economy diminishes further and further until only the state remains.

The doomsday mechanism is also operating within government itself. By 1992, more than half of all federal outlays went for what are called entitlements. Those are expenses — such as Medicare, Social Security, and government retirement programs — which are based on promises of future payments. Many of them are contractual obligations, and millions of people depend on them.

That does not mean they cannot be eliminated. For example, entitlements include $24 billion per year for food stamps. There is no contractual obligation to continue those, only political expediency. By now, most Americans have stood in grocery lines and watched the well-dressed customer in front of them use food stamps for ice cream, pretzels, candy, and wine and then drive away in a late-model car. The political function of the food stamp program is not to help the hungry but to buy votes.

The programs that do involve contractual obligations — such as Social Security and Medicare — could be turned over to private firms which would not only operate them more efficiently but also would pay out higher benefits. Congress, however, does not dare to touch any of these entitlements for fear of losing votes.

Normally, with contracts for future obligations of this kind, the issuer is required by law to accumulate money into a fund to make sure that there will be enough available when future payments become due. The federal government does not abide by those laws. The funds exist on paper only. The money that comes in for future obligations is immediately spent and replaced by a government I.O.U. So, as those future payments come due, all of the money must come from revenue being collected at that time.

Herein lies the doomsday mechanism. These obligations will be paid out of future taxes or inflation. Entitlements currently represent 52% of all federal outlays, and they are growing at the rate of 12% each year. When this is added to the 14% that is now being spent for interest payments on the national debt, we come to the startling conclusion that two-thirds of all federal expenses are now entirely automatic, and that percentage is growing each month.

Even if Congress were to stop all of the spending programs in the normal budget — dismantle the armed forces, close down all of its agencies and bureaus, stop all of its subsidies, and board up all of its buildings, including the White House — it would be able to reduce its present spending by only one-third. And even that small amount is shrinking by 10 to 12% per year. That is a best-case scenario. The real-case is that Congress is accelerating its discretionary spending, not canceling it. One does not have to be a statistical analyst to figure out where this trend is headed.

The biggest doomsday mechanism of all, however, is the Federal Reserve System. It will be recalled that every cent of our money supply — including coins, currency, and checkbook money — came into being for the purpose of being loaned to someone. These dollars will disappear when those loans are paid back. They exist only so long as the debt behind them exists. Underneath the pyramid of money, supporting the entire structure, are the so-called reserves which represent the Fed’s monetization of debt. If we tried to pay off the national debt, those reserves would also start to disappear, and our money supply would be undermined. The Federal Reserve would have to scramble into the money markets of the world and replace U.S. securities with bonds from corporations and other countries. Technically, that can be done, but the transition could be devastating. Under the Federal Reserve System, therefore, Congress would be fearful to eliminate the national debt even if it wanted to.

These are the doomsday mechanisms already in operation. If we do not understand how they function, we will not be prepared for our trip into the future. The scenes that will unfold there will appear too bizarre, the events too shocking. We would be convinced that something surely had gone wrong with our time machine.

Who Owns the National Debt?

It has been said that we need not worry about interest on the national debt because We owe it to ourselves. Let’s take a look at who owes what to whom.

It may come as a surprise to learn that the Federal Reserve holds but a small portion of the national debt, only about 8%. Foreign investors own approximately 27%, and agencies of the federal government have 28% (the I.O.U.s that replaced money taken from the funds such as the Social Security Fund). Private-sector investors in the U.S. hold the largest share of about 37%. It is partly true, therefore, that We owe it to ourselves or at least that all of us owe it to some of us. The some of us who receive the interest are private investors seeking income that is exempt from state income taxes, and large institutions such as banks, corporations, insurance companies, and investment funds. With institutions, the money represents pooled assets belonging to thousands of small investors. So, a major portion of the interest on the national debt does, indeed, accrue to the benefit of a large sector of the American people.

That’s the good news. The bad news is that the government obtains every cent of the money it pays to us by confiscating it from us in the first place. If it is true that we owe it to ourselves, then it is also true that we pay it to ourselves. The money goes out of one pocket back into the other — minus a handling fee. The government takes $1,000 from us in taxes and inflation and gives us back $350. The so-called benefit to the public is but a giant scam.

And more bad news: When people purchase government bonds, there is less money available for investment in private industry. It is well known that government credit crowds out private credit. The result is that the productive side of the nation is handicapped by unfair competition for investment capital. To obtain new money for growth, private companies must pay higher interest rates. These are passed on to the consumer in the form of higher prices. Many companies are forced to curtail their plans for expansion, and potentially new jobs are never created. Some companies are forced out of business altogether, and their employees are put out of work. The economy is always retarded by government debt. The larger the debt, the greater the damage.

The 27% portion of the national debt held by foreign investors may not seem like a large percentage, but it represents a huge amount of money nevertheless. A trillion dollars cannot be ignored. These bonds could become a great problem down the line as they mature. So far, they have been a partial blessing because they were purchased with money that already existed. Therefore, they were not inflationary. But it is not difficult to imagine future conditions under which the bond holders would decide not to renew. In order to pay off those bonds on maturity, the Treasury would have to issue new ones. The Federal Reserve then would have to purchase the new bonds with fiat money. Therefore, foreign-held federal debt is a ticking time bomb. If it should ever have to be picked up by the Fed, the inflationary impact on our country would be staggering.

What Difference Does It Make?

There is a tendency to read about these trends with a kind of detached fascination; Isn’t that interesting! But where is the relevance? Why get excited over such technicalities and abstractions? So what if the government is mired in debt? Who cares if the interest will never be paid? What of it if we have a world currency or a world government? What difference will any of it make to me?

The first step toward answering those questions is to see what difference it already has made. Our upcoming trip into the future will merely extend those lines.

As illustrated in previous sections of this book, there has been a long-term policy at the highest levels of government to shift economic resources away from the United States. That policy has been successful. Based on doomsday predictions of environmental disaster, government has saddled private companies with such burdensome expenses for eliminating waste products that heavy industry, once the mainstay of American prosperity, has fled our shores. Because of concern over the natural habitat of the spotted owl and the desert kangaroo rat, millions of acres of timber and agricultural land have been taken out of production. High taxes, rules beyond reason for safety devices in the work place, so-called fair-employment practices, and mandatory health insurance are rapidly destroying what is left of America’s private industry. The result is unemployment and dislocation for millions of American workers.

Federal taxes, including social-security, now take more than 40% of our private incomes. State, county, and local taxes are on top of that. Inflation feeds on what is left. We spend half of each year working for the government.

A study by the AFL-CIO in 1977 revealed that, in spite of wage increases in terms of dollars, the real wages of the average American — in terms of what he can buy with those dollars — were going down. That trend was confirmed in 1980 by the U.S. Census Bureau. In 1992, the Consumers’ Union analyzed how many hours one had to work to buy common items compared to thirty years previously. Some low-priced items — such as long-distance phone calls, gasoline, food products, and wrist-watches — were cheaper in 1992 in terms of hours worked to acquire them. But the higher-priced items — such as housing, college educations, and health care — were far more costly than ever. The report concludes:

The average U.S. household has maintained its living standard largely because families are working more hours. Millions of women entered the work force in the past 25 years. In 1970, about 21 million women worked full time. Now that figure is over 36 million. That has helped to keep family buying power fairly stable. But for many families, it now represents the labor of two earners rather than one.

The message here is that real wages in America have declined. Young couples with a single income now have a lower standard of living than their parents did. In spite of two incomes, the real net worth of the average household is falling. The amount of leisure time is shrinking. The percentage of Americans who own their homes is dropping. Tne age at which a family acquires a first home is rising. The number of families counted among the middle class is falling. The size of the family savings is smaller. The number of people living below the officially defined poverty level is rising. The rate of personal bankruptcy is triple of what it was in the 1960s. Over 90% of all Americans are broke at age 65.

The New World Order

None of this is happening by accident. Chapters five and six documented the currently unfolding plan to create a functional world government within the framework of the United Nations, Often referred to as The New World Order by its advocates, the proposed global government is designed upon the principles of socialism. It is the dream-come-true for the world’s socialist theoreticians, politicians, and technicians who see it as the ultimate laboratory for their social experiments upon mankind.

There are two weapons of control now being readied at the UN. One is a world military command which eventually will control all national armies and super weapons. That is being accomplished under the slogans of peace and disarmament. The other is a world central bank, now called the IMF /World Bank, with the ability to issue a common money which all nations must accept. That is being accomplished under the slogans of international trade and economic growth.

Of the two weapons, monetary control is the most important. The use of military force is viewed as a crude weapon in the arsenal of world government to be used only as a last resort. The effect of monetary control is more powerful than mega-tons of atomic energy. It reaches into every shop and home, a feat that could never be accomplished by standing armies. It can be used with precision against one nation, one group, or even one person while sparing or benefiting all others. Military force may be irresistible but it causes resentment and political unrest that can smolder for decades. Since monetary manipulation is seldom understood by its victims, it does not incur their wrath. In fact, the manipulators enjoy high social status and financial reward. For these reasons, monetary control is the weapon of choice in The New World Order.

A future world parliament based upon the concept of minimum coercion and maximum freedom could be a wonderful advent for mankind. Without trying to cram all nations into a centrally-directed beehive, it would welcome cultural and religious variety. Instead of trying to place the world into a collectivist straight-jacket of rules, regulations, quotas, and subsidies, it would encourage diversity and freedom-to-choose. Instead of levying ever-larger taxes on every conceivable economic activity and destroying human incentive in the process, it would encourage member nations to reduce the taxes that already exist and thereby stimulate production and creativity.

A world parliament, dedicated to the concept of freedom, would have to withhold membership from any government that violated the basic rights of its citizens. It could be the means by which totalitarian governments would be encouraged to abandon their oppressive policies in order to obtain the economic and political advantages of acceptance in the world body. It could become the greatest force for peace and prosperity and freedom we have ever known.

But The New World Order that is now incubating at the United Nations is an entirely different creature. Its members represent just about every dictator and warlord in the world. Its philosophy is built upon the socialist doctrine that all good flows from the state. Those who do not conform must be bent to the government’s will or be eliminated. It cannot oppose totalitarianism for the simple reason that it is totalitarianism.

America Is The Target

The New World Order cannot become a functional reality so long as the United States remains able to go it alone. America is viewed as a potential bull in the china shop. Right now, it is safely under control, but the world planners are worried it might break loose in the future. If the American people were to awaken to the realities of world politics and regain control over their government, they still would have the military and economic power to break away. Among the world planners, therefore, it has become the prime directive to weaken the United States both militarily and economically. And this directive has come from American leaders, not those of other countries. CFR members sitting in the White House, the State Department, the Defense Department, and the Treasury are now working to finalize that part of the plan. It ls yet one more doomsday mechanism that, once it gains sufficient momentum, will pass the critical point of no return.

The Korean War was the first time American soldiers fought under UN authority. That trend has accelerated and already includes military actions in Iraq, Yugoslavia, Bosnia, Somalia, and Haiti. By the time this book gets to print, there undoubtedly will be more. While the American military is being absorbed into the UN, steps are also underway to hand over American atomic weapons. When that happens, the doomsday mechanism will become activated. It will be too late to escape.

Likewise, the IMF/World Bank is already functioning — in conjunction with the Federal Reserve System — as a world central bank. The American economy is being deliberately exhausted through foreign giveaways and domestic boondoggles. The object is, not to help those in need or to preserve the environment, but to bring the system dawn. When once-proud and independent Americans are standing in soup lines, they will be ready to accept the carefully arranged rescue by the world bank. A world currency is already designed, awaiting only an appropriate crisis to justify its introduction. From that, too, there will be no escape.

The Report From Iron Mountain

The substance of these stratagems can be traced to a think-tank study released in 1966 called the Report From Iron Mountain. Although the origin of the report is highly debated, the document itself hints that it was commissioned by the Department of Defense under Defense Secretary, Robert McNamara and was produced by the Hudson Institute located at the base of Iron Mountain in Croton-on-Hudson, New York. The Hudson Institute was founded and directed by Herman Kahn, formerly of the Rand Corporation. Both McNamara and Kahn were members of the CFR.

The self-proclaimed purpose of the study was to explore various ways to stabilize society. Praiseworthy as that may sound, a reading of the Report soon reveals that the word society is used synonymously with the word government. Furthermore, the word stabilize is used as meaning to preserve and to perpetuate, It is clear from the start that the nature of the study was to analyze the. different ways a government can perpetuate itself in power, ways to control its citizens and prevent them from rebelling.

It was stated at the beginning of the report that morality was not an issue. The study did not address questions of right or wrong; nor did it deal with such concepts as freedom or human rights. Ideology was not an issue, nor patriotism, nor religious precepts. Its sole concern was how to perpetuate the existing government. The report said:

Previous studies have taken the desirability of peace, the importance of human life, the superiority of democratic institutions, the greatest good for the greatest number, the dignity of the individual, the desirability of maximum health and longevity, and other such wishful premises as axiomatic values necessary for the justification of a study of peace issues. We have not found them so. We have attempted to apply the standards of physical science to our thinking, the principal characteristic of which is not quantification, as is popularly believed, but that, in Whitehead’s words,… it ignores all judgments of value; for instance, all esthetic and moral judgments.

The major conclusion of the report was that, in the past, war has been the only reliable means to achieve that goal. It contends that only during times of war or the threat of war are the masses compliant enough to carry the yoke of government without complaint. Fear of conquest and pillage by an enemy can make almost any burden seem acceptable by comparison. War can be used to arouse human passion and patriotic feelings of loyalty to the nation’s leaders. No amount of sacrifice in the name of victory will be rejected. Resistance is viewed as treason. But, in times of peace, people become resentful of high taxes, shortages, and bureaucratic intervention. When they become disrespectful of their leaders, they become dangerous. No government has long survived without enemies and armed conflict. War, therefore, has been an indispensable condition for stabilizing society. These are the report’s exact words:

The war system not only has been essential to the existence of nations as independent political entities, but has been equally indispensable to their stable political structure. Without it, no government has ever been able to obtain acquiescence in its legitimacy, or right to rule its society. The possibility of war provides the sense of external necessity without which no government can long remain in power. The historical record reveals one instance after another where the failure of a regime to maintain the credibility of a war threat led to its dissolution, by the forces of private interest, of reactions to social injustice, or of other disintegrative elements. The organization of society for the possibility of war is its principal political stabilizer … It has enabled societies to maintain necessary class distinctions, and it has insured the subordination of the citizens to the state by virtue of the residual war powers inherent in the concept of nationhood.

A New Definition of Peace

The report then explains that we are approaching a point in history where the old formulas may no longer work. Why? Because it may now be possible to create a world government in which all nations will be disarmed and disciplined by a world army, a condition which will be called peace. The report says: The word peace, as we have used it in the following pages, … implies total and general disarmament. Under that scenario, independent nations will no longer exist and governments will not have the capability to wage war. There could be military action by the world army against renegade political subdivisions, but these would be called peace-keeping operations, and soldiers would be called peace keepers. No matter how much property is destroyed or how much blood is spilled, the bullets will be peaceful bullets and the bombs — even atomic bombs, if necessary — will be peaceful bombs.

The report then raises the question of whether there can ever be a suitable substitute for war? What else could the regional governments use — and what could the world government itself use — to legitimize and perpetuate itself? To provide an answer to that question was the stated purpose of the study.

The Report from Iron Mountain concludes that there can be no substitute for war unless it possesses three properties. It must (1) be economically wasteful, (2) represent a credible threat of great magnitude, and (3) provide a logical excuse for compulsory service to the government.

A Sophisticated Form of Slavery

On the subject of compulsory service, the report explains that one of the advantages of standing armies is that they provide a place for the government to put antisocial and dissident elements of society. In the absence of war, these forced-labor battalions would be told they are fighting poverty or cleaning up the planet or bolstering the economy or serving the common good in some other fashion. Every teenager would be required to serve — especially during those years in which young people are most rebellious against authority. Older people, too, would be drafted as a means of working off tax payments and fines. Dissidents would face heavy fines for hate crimes and politically incorrect attitudes so eventually, they would all be in the forced-labor battalions. The report says:

We will examine … the time-honored use of military institutions to provide anti-social elements with an acceptable role in the social structure … The current euphemistic cliches — juvenile delinquency and alienation — have had their counterparts in every age. In earlier days these conditions were dealt with directly by the military without the complications of due process, usually through press eanes or outright enslavement …

Most proposals that address themselves, explicitly or otherwise to the postwar problem of controlling the socially alienated turn to some variant of the Peace Corps or the soiled Job Corps for a solution. The socially disaffected, the economically unprepared, the psychologically uncomfortable, the hard-core delinquents, the incorrigible subversives, and the rest of the unemployable are seen as somehow transformed by the disciplines of a service modeled on military precedent into more or less dedicated social service workers …

Another possible surrogate for the control of potential enemies of society is the rein traduction, in some form consistent with modern technology and political processes, of slavery … It is entirely possible that the development of a sophisticated form of slavery may be an absolute prerequisite for social control in a world at peace. As a practical matter, conversion of the code of military discipline to a euphemized form of enslavement would entail surprisingly little revision; the logical first step would be the adoption of some form of universal military service.

Blood Games

The report considered ways in which the public could be preoccupied with non-important activities so that it would not fcave time to participate in political debate or resistance. Recreation, trivial game shows, pornography, and situation comedies could play an important role, but blood games were considered to be the most promising of all the options. Blood games are competitive events between individuals or teams that are sufficiently violent in nature to enable the spectators to vicariously work off their frustrations. As a minimum, these events must evoke a passionate team loyalty on the part of the fans and must include the expectation of pain and injury on the part of the players. Even better for their purpose is the spilling of blood and the possibility of death. The common man has a morbid fascination for violence and blood. Crowds gather to chant Jump! Jump! at the suicidal figure on the hotel roof. Cars slow to a near stop on the highway to gawk at broken bodies next to a collision. A schoolyard fight instantly draws a circle of spectators. Boxing matches and football games and hockey games and automobile races are telecast daily, attracting millions of cheering fans who give rapt attention to each moment of danger, each angry blow to the face, each broken bone, each knockout, each carrying away of the unconscious or possibly dying contestant. In this fashion, their anger at society is defused and focused, instead, on the opposing team. The emperors of Rome devised the Circuses and gladiator contests and public executions by wild beasts for precisely that purpose.

Before jumping to the conclusion that such concepts are absurd in modern times, recall that during the 1985 European soccer championship in Belgium, the spectators became so emotionally involved in the contest that a bloody riot broke out in the bleachers leaving behind 38 dead and more that 400 injured. U.S. Neius & World Report gives this account:

The root of the trouble: A tribal loyalty to home teams that surpasses an obsession and, say some experts, has become a substitute religion for many. The worst offenders include members of gangs such as Chelsea’s Anti-Personnel Firm, made up of ill-educated young males who find in soccer rivalry an escape from boredom.

Still, the British do not have a patent on soccer violence. On May 26, eight people were killed and more than 50 injured in Mexico City, -a 1964 stadium riot in Lima, Peru, killed more than 300 — and a hotly disputed 1969 match between El Salvador and Honduras led to a week-long shooting war between the two countries, causing hundreds of casualties.

The U.S. is criticized for the gridiron violence of its favorite sport football, but outbursts in the bleachers are rare because loyalties are spread among many sports and national pride is not at stake. Said Thomas Tutko, professor of psychology at California’s San Jose State University: In these other countries, it used to be their armies. Now it’s their competitive teams that stir passions.

Having considered all the ramifications of blood games, the Report from Iron Mountain concluded that they were not an adequate substitute for war. It is true that violent sports are useful distracters and do, in fact, allow an outlet for boredom and fierce group loyalty, but their effect on the nation’s psyche could not match the intensity of war hysteria. Until a better alternative could be found, world government would have to be postponed so that nations could continue to wage war.

Finding a Credible Global Threat

In time of war, most citizens uncomplainingly accept their low quality of life and remain fiercely loyal to their leaders. If a suitable substitute for war is to be found, then it must also elicit that same reaction. Therefore, a new enemy must be found that threatens the entire world, and the prospects of being overcome by that enemy must be just as terrifying as war itself. The report is emphatic on that point:

Allegiance requires a cause; a cause requires an enemy. This much is obvious; the critical point is that the enemy that defines the cause must seem genuinely formidable. Roughly speaking, the presumed power of the enemy sufficient to warrant an individual sense of allegiance to a society must be proportionate to the size and complexity of the society. Today, of course, that power must be one of unprecedented magnitude and frightfulness.

The first consideration in finding a suitable threat to serve as a global enemy was that it did not have to be real. A real one would be better, of course, but an invented one would work just as well, provided the masses could be convinced it was real. The public will more readily believe some fictions than others. Credibility would be more important than truth.

An invasion by aliens from outer space was given serious consideration. The report said that experiments along those lines already may have been tried. Public reaction, however, was not sufficiently predictable, because the threat was not credible. Here is what the report had to say:

Credibility, in fact, lies at the heart of the problem of developing a political substitute for war. This is where the space-race proposals, in many ways so well suited as economic substitutes for war, fall short The most ambitious and unrealistic space project cannot of itself generate a believable external menace. It has been hotly argued that such a menace would offer the last best hope of peace, etc., by uniting mankind against the danger of destruction by creatures from other planets or from outer space. Experiments have been proposed to test the credibility of an out-of-our-world invasion threat; it is possible that a few of the more difficult-to-explain flying saucer incidents of recent years were in fact early experiments of this kind. If so, they could hardly have been judged encouraging.

This report was released in 1966 when the idea of an alien presence seemed far fetched to the average person. In the ensuing years, however, that perception has changed. A growing segment of the population now believes that intelligent life forms may exist beyond our planet and could be monitoring our own civilization. Whether that belief is right or wrong is not the issue here. The point is that a dramatic encounter with aliens shown on network television — even if it were to be entirely fabricated by high-tech computer graphics or laser shows in the sky — could be used to stampede all nations into world government supposedly to defend the Earth from invasion. On the other hand, if the aliens were perceived to have peaceful intent, an alternative scenario would be to form world government to represent a unified human species speaking with a single voice in some kind of galactic federation. Either scenario would be far more credible today than in 1966.

The Environmental-Pollution Model

The final candidate for a useful global threat was pollution of the environment. This was viewed as the most likely to succeed because it could be related to observable conditions such as smog and water pollution — in other words, it would be based partly on fact and, therefore, be credible. Predictions could be made showing end-of-earth scenarios just as horrible as atomic warfare. Accuracy in these predictions would not be important. Their purpose would be to frighten, not to inform. It might even be necessary to deliberately poison the environment to make the predictions more convincing and to focus the public mind on fighting a new enemy, more fearful than any invader from another nation — or even from outer space. The masses would more willingly accept a falling standard of living, tax increases, and bureaucratic intervention in their lives as simply the price we must pay to save Mother Earth. If a vision of death and destruction from pollution could be implanted into the public subconscious mind, then the global battle against it could, indeed, replace war as the mechanism for control.

Did the Report From Iron Mountain really say that? It certainly did — and much more. Here are just a few of the pertinent passages:

When it comes to postulating a credible substitute for war … the alternate enemy must imply a more immediate, tangible, and directly felt threat of destruction. It must justify the need for taking and paying a blood price in wide areas of human concern. In this respect, the possible substitute enemies noted earlier would be insufficient. One exception might be the environmental-pollution model, if the danger to society it posed was genuinely imminent. The fictive models would have to carry the weight of extraordinary conviction, underscored with a not inconsiderable actual sacrifice of life … It may be, for instance, that gross pollution of the environment can eventually replace the possibility of mass destruction by nuclear weapons as the principal apparent threat to the survival of the species. Poisoning of the air, and of the principal sources of food and water supply, is already well advanced, and at first glance would seem promising in this respect; it constitutes a threat that can be dealt with only through social organization and political power …

It is true that the rate of pollution could be increased selectively for this purpose … But the pollution problem has been so widely publicized in recent years that it seems highly improbable that a program of deliberate environmental poisoning could be implemented in a politically acceptable manner.

However unlikely some of the possible alternative enemies we have mentioned may seem, we must emphasize that one must be found of credible quality and magnitude, if a transition to peace is ever to come about without social disintegration. It is more probable, in our judgment, that such a threat will have to be invented.

Authenticity of the Report

The Report From Iron Mountain states that it was produced by a Special Study Group of fifteen men whose identities were to remain secret and that it was not intended to be made public. One member of the group, however, felt the report was too important to be kept under wraps. He was not in disagreement with its conclusions. He merely believed that more people should read it. He delivered his personal copy to Leonard Lewin, a well-known author and columnist who, in turn, negotiated its publication by Dial Press. It was then reprinted by Dell Publishing.

This was during the lohnson Administration, and the President’s Special Assistant for National Security Affairs was CFR member Walt Rostow. Rostow was quick to announce that the report was a spurious work. Herman Kahn, CFR director of the Hudson Institute, said it was not authentic. The Washington Post — which is owned and run by CFR member Katharine Graham — called it a delightful satire. Time magazine, founded by CFR-member Henry Luce, said it was a skillful hoax. Then, on November 26,1967, 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 CFR, 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. He wrote:

As I would put my personal repute behind the authenticity of this document, so would I testify to the validity of its conclusions. My reservations relate only to the wisdom of releasing it to an obviously unconditioned public.

Six weeks later, in an Associated Press dispatch from London, Galbraith went even further and jokingly admitted that he was a member of the conspiracy.

That, however, did not settle the issue. The following day, Galbraith backed off. When asked about his conspiracy statement, he replied: For the first time since Charles II The Times has been guilty of a misquotation … Nothing shakes my conviction that it was written by either Dean Rusk or Mrs. Clare Booth Luce.

The reporter who conducted the original interview was em-barassed by the allegation and did further research. Six days later, this is what he reported:

Misquoting seems to be a hazard to which Professor Galbraith is prone. The latest edition of the Cambridge newspaper Varsity quotes the following (tape recorded) interchange:

Interviewer: Are you aware of the identity of the author of Report from Iron Mountain?

Galbraith: I was in general a member of the conspiracy but I was not the author. I have always assumed that it was the man who wrote the foreword — Mr. Lewin.

So, on at least three occasions, Galbraith publicly endorsed the authenticity of the report but denied that he wrote it. Then who did? Was it Leonard Lewin, after all? In 1967 he said he did not. In 1972 he said that he did. Writing in The New York Times Book Review Lewin explained: I wrote the Report all of it … What I intended was simply to pose the issues of war and peace in a provocative way.

But wait! A few years before that, columnist William F. Buckley told The New York Times that he was the author. That statement was undoubtedly made tongue-in-cheek, but who — and what are we to believe? Was it written by Herman Kahn, John Kenneth Galbraith, Dean Rusk, Clare Booth Luce, Leonard Lewin, or William F. Buckley?

In the final analysis, it makes little difference. The important point is that the Report from Iron Mountain, whether written as a think-tank study or a political satire, explains the reality that surrounds us. Regardless of its origin, the concepts presented in it are now being implemented in almost every detail. All one has to do is hold the Report in one hand and the daily newspaper in the bther to realize that every major trend in American life is conforming to the blueprint. So many things that otherwise are incomprehensible suddenly become clear: foreign aid, wasteful spending, the destruction of American industry, a job corps, gun control, a national police force, the apparent demise of Soviet power, a UN army, disarmament, a world bank, a world money, the surrender of national independence through treaties, and the ecology hysteria. The Report from Iron Mountain is an accurate summary of the plan that has already created our present. It is now shaping our future.

Environmentalism a Substitute for War

It is beyond the scope of this study to prove that currently accepted predictions of environmental doom are based on exaggerated and fraudulent scientific studies, But such proof is easily found if one is willing to look at the raw data and the assumptions upon which the projections are based. More important, however, is the question of why end-of-world scenarios based on phony scientific studies — or no studies at all — are uncritically publicized by the CFR-controlled media; or why radical environmental groups advocating socialist doctrine and anti-business programs are lav-ishly funded by CFR-dominated foundations/ banks, and corporations, the very groups that would appear to have the most to lose. The Report From Iron Mountain answers those questions.

As the Report pointed out, truth is not important in these matters. It’s what people can be made to believe that counts. Credibility is the key, not reality. There is just enough truth in the fact of environmental pollution to make predictions of planetary doom in the year two-thousand-something seem believable. All that is required is media cooperation and repetition. The plan has apparently worked. People of the industrialized nations have been subjected to a barrage of documentaries, dramas, feature films, ballads, poems, bumper stickers, posters, marches, speeches, seminars, conferences, and concerts. The result has been phenomenal. Politicians are now elected to office on platforms consisting of nothing more than an expressed concern for the environment and a promise to clamp down on those nasty industries. No one questions the damage done to the economy or the nation. It makes no difference when the very planet on which we live is sick and dying-Not one in a thousand will question that underlying premise. How could it be false? Look at all the movie celebrities and rock stars who have joined the movement.

While the followers of the environmental movement are preoccupied with visions of planetary doom, let us see what the leaders are thinking. The first Earth Day was proclaimed on April 22, 1970, at a Summit meeting in Rio de Janeiro, attended by environmentalists and politicians from all over the world. A publication widely circulated at that meeting was entitled the Environmental Handbook. The main theme of the book was summarized by a quotation from Princeton Professor Richard A. Falk, a member of the CFR. Falk wrote that there are four interconnected threats to the planet — wars of mass destruction, overpopulation, pollution, and the depletion of resources. Then he said: The basis of all four problems is the inadequacy of the sovereign states to manage the affairs of mankind in the twentieth century. The Handbook continued the CFR line by asking these rhetorical questions: Are nation-states actually feasible, now that they have power to destroy each other in a t single afternoon?… What price would most people be willing to pay for a more durable kind of human organization — more taxes, giving up national flags, perhaps the sacrifice of some of our hard-won liberties?

In 1989, the CFR-owned Washington Post published an article written by CFR member George Kennan in which he said: We must prepare instead for … an age where the great enemy is not the Soviet Union, but the rapid deterioration of our planet as a supporting structure for civilized life.

On March 27,1990, in the CFR-controiled The New York Times, CFR member Michael Oppenheimer wrote: Global warming, ozone depletion, deforestation and overpopulation are the four horsemen of a looming 21st century apocalypse As the cold war recedes, the environment is becoming the No. 1 international security concern.

The New York Times has been one of the principal means by which CFR policies are inserted into the mainstream of public opinion. The paper was purchased in 1896 by Alfred Ochs, with financial backing from CFR pioneer J. P. Morgan, Rothschild agent August Belmont, and Jacob Schiff, a partner in Kuhn, Loeb & Co. It is now owned by CFR member Arthur Sulzberger, who is also the publisher, and it is staffed by numerous CFR editors and columnists. See Perloff, p. 181.

CFR member, Lester Brown, heads up another think tank called the Worldwatch Institute. In the Institute’s annual report, entitled State of the World 1991, Brown said that the battle to save the planet will replace the battle over ideology as the organizing theme of the new world order.

In the official publication of the 1992 Earth Summit, we find this: The world community now faces together greater risks to our common security through our impacts on the environment than from traditional military conflicts with one another.

How many times does it have to be explained? The environmental movement was created by the CFR. It is a substitute for war that they hope will become the emotional and psychological foundation for world government.

Humanity Itself Is the Target

The Club of Rome is a group of global planners who annually release end-of-world scenarios based on predictions of overpopulation and famine. Their membership is international, but the American roster includes such well-known CFR members as Jimmy Carter, Harlan Cleveland, Claiburne Pell, and Sol Linowitz. Their solution to overpopulation? A world government to control birth rates and, if necessary, apply euthanasia. That is a gentle word for the deliberate killing of the old, the weak, and of course the uncooperative. Following the same reasoning advanced at Iron Mountain, the Club of Rome has concluded that fear of environmental disaster could be used as a substitute enemy for the purpose of unifying the masses behind their program. In their 1991 book entitled The First Global Revolution, we find this:

In searching for a new enemy to unite us, we came up with the idea that pollution, the threat of global warming, water shortages, famine and the like would fit the bill … All these dangers are caused by human intervention … The real enemy, then, is humanity itself.

Socialist theoreticians have always been fascinated by the question of controlling population growth. It excites their imagination because it is the ultimate bureaucratic plan. If the real enemy ishumanity itself, as the Club of Rome says, then humanity itself must become the target. Fabian Socialist Bertrand Russell expressed it thus:

I do not pretend that birth control is the only way in which population can be kept from increasing … War, as I remarked a moment ago, has hitherto been disappointing in this respect, but perhaps bacteriological war may prove more effective. If a Black Death could be spread throughout the world once in every generation, survivors could procreate freely without making the world too full …

A scientific world society cannot be stable unless there is world government … It will be necessary to find ways of preventing an increase in world population. If this is to be done otherwise than by wars, pestilences and famines, it will demand a powerful international authority. This authority should deal out the world’s food to the various nations in proportion to their population at the time of the establishments of the authority. If any nation subsequently increased its population, it should not on that account receive any more food. The motive for not increasing population would therefore be very compelling.

Very compelling, indeed. These quiet-spoken socialists are not kidding around. For example, one of the most visible environmentalists and advocate of population control is Jacques Cousteau. Interviewed by the United Nations UNESCO Courier in November of 1991, Cousteau spelled it out. Speaking of death by cancer, he said:

Should we eliminate suffering diseases? The idea is beautiful, but perhaps not a benefit for the long term. We should not allow our dread of diseases to endanger the future of our species. This is a terrible thing to say. In order to stabilize world population, we must eliminate 350,000 people per day. It is a horrible thing to say, but it’s just as bad not to say it.

Gorbachev Becomes an Ecology Warrior

We can now understand how Mikhail Gorbachev, formerly the leader of one of the most repressive governments the world has known, became head of a new organization called the International Creen Cross, which supposedly is dedicated to environmental issues. Gorbachev has never denounced socialism, only the label of a particular brand of socialism called Communism. His real interest is not ecology but world government with himself assured a major position in the socialist power structure. In a public appearance in Fulton, Missouri, he praised the Club of Rome, of which he is a member, for its position on population control. Then he said:

One of the worst of the new dangers is ecological … Today, global climatic shifts; the greenhouse effect; the ozone hole; acid rain; contamination of the atmosphere, soil and water by industrial and household waste; the destruction of the forests; etc. all threaten the stability of the planet.

Gorbachev proclaimed that global government was the answer to these threats and that the use of government force was essential. He said: I believe that the new world order will not be fully realized unless the United Nations and its Security Council create structures … authorized to impose sanctions and make use of other measures of compulsion.

Here is an arch criminal who fought his way up through the ranks of the Soviet Communist Party, became the protege of Yuri Andropov, head of the dreaded KGB, was a member of the USSR’s ruling Politburo throughout the Soviet invasion of Afghanistan, and who was selected by the Politburo in 1985 as the supreme leader of world Communism. All of this was during one of the Soviet’s most dismal periods of human-rights violations and subversive activities against the free world. Furthermore, he ruled over a nation with one of the worst possible records of environmental destruction. At no time while he was in power did he ever say or do anything to show concern over planet Earth.

All that is now forgotten. Gorbachev has been transformed by the CFR-dominated media into an ecology warrior. He is calling for world government and telling us that such a government will use environmental issues as justification for sanctions and other measures of compulsion. We cannot say that we were not warned.

U.S. Branded as Ecological Aggressor

The use of compulsion is an important point in these plans. People in the industrialized nations are not expected to cooperate in their own demise. They will have to be forced. They will not like it when their food is taken for global distribution. They will not approve when they are taxed by a world authority to finance foreign political projects. They will not voluntarily give up their cars or resettle into smaller houses or communal barracks to satisfy the resource-allocation quotas of a UN agency. Club-of-Rome member Maurice Strong states the problem:

In effect, the United States is committing environmental aggression against the rest of the world … At the military level, the United States is the custodian. At the environmental level, the United States is clearly the greatest risk … One of the worst problems in the United States is energy prices — they’re too low …

It is clear that current lifestyles and consumption patterns of the affluent middle class … involving high meat intake, consumption of large amounts of frozen and ‘convenience’ foods, ownership of motor-vehicles, numerous electric household appliances, home and work-place air-conditioning … expansive suburban housing … are not sustainable.

Mr. Strong’s remarks were enthusiastically received by world environmental leaders, but they prompted this angry editorial response in the Arizona Republic:

Translated from eco-speak, this means two things: (1) a reduction in the standard of living in Western nations through massive new taxes and regulations, and (2) a wholesale transfer of wealth from industrialized to under-developed countries. The dubious premise here is that if the U.S. economy could be reduced to, say, the size of Malaysia’s, the world would be a better place … Most Americans probably would balk at the idea of the U.N. banning automobiles in the U.S.

Who is this Maurice Strong who sees the United States as the environmental aggressor against the world? Does he live in poverty? Does he come from a backward country that is resentful of American prosperity? Does he himself live in modest circumstances, avoiding consumption in order to preserve our natural resources? None of the above. He is one of the wealthiest men in the world. He lives and travels in great comfort. He is a lavish entertainer. In addition to having great personal wealth derived from the oil industry in Canada — which he helped nationalize — Maurice Strong was the Secretary-General of the 1992 Earth Summit in Rio; head of the 1972 UN Conference on Human Environment in Stockholm; the first Secretary-General of the UN Environment Program; president of the World Federation of United Nations; co-chairman of the World Economic Forum; member of the Club of Rome; trustee of the Aspen Institute; and a director of the World Future Society. That is probably more than you wanted to know about this man, but it is necessary in order to appreciate the importance of what follows.

A Plot for Economic Crisis

Maurice Strong believes — or says that he believes — the world’s ecosystems can be preserved only if the affluent nations of the world can be disciplined into lowering their standard of living. Production and consumption must be curtailed. To bring that about, those nations must submit to rationing, taxation, and political domination by world government. They will probably not do that voluntarily, he says, so they will have to be forced. To accomplish that, it will be necessary to engineer a global monetary crisis which will destroy their economic systems. Then they will have no choice but to accept assistance and control from the UN.

This strategy was revealed in the May 1990, issue of West magazine, published in Canada. In an article entitled The Wizard of Baca Grande, journalist Daniel Wood described his week-long experience at Strong’s private ranch in southern Colorado. This ranch has been visited by such CFR notables as David Rockefeller, Secretary-of-State Henry Kissinger, founder of the World Bank Robert McNamara, and the presidents of such organizations as IBM, Pan Am, and Harvard.

During Wood’s stay at the ranch, the tycoon talked freely about environmentalism and politics. To express his own world view, he said he was planning to write a novel about a group of world leaders who decided to save the planet. As the plot unfolded, it became obvious that it was based on real people and real events. Wood continues the story:

Each year, he explains as background to the telling of the novel’s plot, the World Economic Forum convenes in Davos, Switzerland. Over a thousand CEOs, prime ministers, finance ministers, and leading academics gather in February to attend meetings and set economic agendas for the year ahead. With this as a setting, he then says: What if a small group of these world leaders were to conclude that the principal risk to the earth comes from the actions of the rich countries? And if the world is to survive, those rich countries would have to sign an agreement reducing their impact on the environment. Will they do it?… The group’s conclusion is ‘no.’ the rich countries won’t do it. They won’t change. So, in order to save the planet, the group decides: Isn’t the only hope for the planet that the industrialized civilizations collapse? Isn’t it our responsibility to bring that about?.

This group of world leaders, he continues, form a secret society to bring about an economic collapse. It’s February. They’re all at Davos. These aren’t terrorists. They’re world leaders. They have positioned themselves in the world’s commodity and stock markets. They’ve engineered, using their access to stock exchanges and computers and gold supplies, a panic. Then, they prevent the world’s stock markets from closing. They jam the gears. They hire mercenaries who hold the rest of the world leaders at Davos as hostages. The markets cant close. The rich countries … And Strong makes a slight motion with his fingers as if he were flicking a cigarette butt out the window.

I sit there spellbound. This is not any storyteller talking, this is Maurice Strong. He knows these world leaders. He is, in fact, co-chairman of the Council of the World Economic Forum. He sits at the fulcrum of power. He is in a position to do it.

I probably shouldn’t be saying things like this, he says.

Maurice Strong’s fanciful plot probably shouldn’t be taken too seriously, at least in terms of a literal reading of future events. It is unlikely they will unfold in exactly that manner — although it is not impossible. For one thing, it would not be necessary to hold the leaders of the industrialized nations at gun point. They would be the ones engineering this plot. Leaders from Third-World countries do not have the means to cause a global crisis. That would have to come from the money centers in New York, London, or Tokyo. Furthermore, the masterminds behind this thrust for global government have always resided in the industrialized nations. They have come from the ranks of the CFR in America and from other branches of the International Roundtable in England, France, Belgium, Canada, Japan, and elsewhere. They are the ideological descendants of Cecil Rhodes and they are fulfilling his dream.

It is not important whether or not Maurice Strong’s plot for global economic collapse is to be taken literally. What is important is that men like him are thinking along those lines. As Wood pointed out, they are in a position to do it. Or something like it. If it is not this scenario, they will consider another one with similar consequences. If history has proven anything, it is that men with financial and political power are quite capable of heinous plots against their fellow men. They have launched wars, caused depressions, and created famines to suit their personal agendas. We have little reason to believe that the world leaders of today are more saintly than their predecessors.

Furthermore, we must not be fooled by pretended concern for Mother Earth. The call-to-arms for saving the planet is a gigantic ruse. There is just enough truth to environmental pollution to make the show credible, as the Report From Iron Mountain phrased it, but the end-of-earth scenarios which drive the movement forward are bogus. The real objective in all of this is world government, the ultimate doomsday mechanism from which there can be no escape. Destruction of the economic strength of the industrialized nations is merely a necessary prerequisite for ensnaring them into the global web. The thrust of the current ecology movement is directed totally to that end.

Summary

The United States government is mired in a 5-trillion-dollar debt. By 1993, net interest payments on that debt were running $214 billion per year. That consumes about 14% of all federal revenue and costs the average family over $5,000 each year. Nothing is purchased by it. It merely pays interest. It represents the government’s largest single expense. Interest on the national debt is already consuming more than 57% of all the revenue collected from income taxes. At the present rate of expansion, it will consume 100% in 1998.

By 1992, there were more people working for government than for manufacturing companies in the private sector. There are more citizens receiving government checks than there are paying income taxes. When it is possible for people to vote on issues involving the transfer of wealth to themselves from others, the ballot box becomes a weapon whereby the majority plunders the minority. That is the point of no return. It is a doomsday mechanism.

By 1992, more than half of all federal outlays went for what are called entitlements. Here is another doomsday mechanism. Entitlements are expenses — such as Social Security and Medicare — which are based on promises of future payments. Entitlements represent 52% of federal outlays. When this is added to the 14% that is now being spent for interest payments on the national debt, we come to the startling conclusion that two-thirds of all federal expenses are now entirely automatic, and that percentage is growing each month.

The biggest doomsday mechanism of all is the Federal Reserve System. Every cent of our money supply came into being for the purpose of being loaned to someone. Those dollars will disappear when the loans are paid back. If we tried to pay off the national debt, our money supply would be undermined. Under the Federal Reserve System, therefore, Congress would be fearful to eliminate the national debt even if it wanted to.

Political environmentalism has caused millions of acres of timber and agricultural land to be taken out of production. Heavy industry has been chased from our shores by our own government. High taxes, rules beyond reason for safety devices in the work place, so-called fair-employment practices, and mandatory health insurance are rapidly destroying what is left of the private sector. The result is unemployment and dislocation for millions of American workers. Government moves in to fill the void it creates, and bureaucracy grows by the hour.

Federal taxes now take more than 40% of our private incomes. State, county, and local taxes are on top of that. Inflation feeds on what is left. We spend half of each year working for the government. Real wages in America have declined. Young couples with a single income have a lower standard of living than their parents did. The net worth of the average household is falling. The amount of leisure time is shrinking. The percentage of Americans who own their homes is dropping. The age at which a family acquires a first home is rising. The number of families counted among the middle class is falling. The number of people living below the officially defined poverty level is rising. Over 90% of all Americans are broke at age 65.

None of this is accidental. It is the fulfillment of a plan by members of the CFR who comprise the hidden government of the United States. Their goal is the deliberate weakening of the industrialized nations as a prerequisite to bringing them into a world government built upon the principles of socialism, with themselves in control.

The origin of many of the stratagems in this plan can be traced to a government-sponsored think-tank study released in 1966 called the Report From Iron Mountain. The purpose of the study was to analyze methods by which a government can perpetuate itself in power — ways to control its citizens and prevent them from rebelling. The conclusion of the Report was that, in the past, war has been the only reliable means to achieve that goal. Under world government, however, war technically would be impossible. So the main purpose of the study was to explore other methods for controlling populations and keeping them loyal to their leaders. It was concluded that a suitable substitute for war would require a new enemy which posed a frightful threat to survival. Neither the threat nor the enemy had to be real. They merely had to be believable.

Several surrogates for war were considered, but the only one holding real promise was the environmental-pollution model. This was viewed as the most likely to succeed because (1) it could be related to observable conditions such as smog and water pollution — in other words, it would be based partly on fact and, therefore, believable — and (2) predictions could be made showing end-of-earth scenarios just as horrible as atomic warfare. Accuracy in these predictions would not be important. Their purpose would be to frighten, not to inform.

While the followers of the current environmental movement are preoccupied with visions of planetary doom, the leaders have an entirely different agenda. It is world government.