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Wednesday, 2 December 2015

The Father of Our Destruction: Henry Morgenthau

by Frank Hilliard

Morgenthau Plan
Morgenthau Plan


The current malaise affecting western society is so widespread, so pervasive, it seems almost a force of nature. We see our own destruction in the invasion of Europe and we hardly care. Even in Europe, hardly anyone cares. I have relatives who, at the height of the migrant crisis, flew from England to Croatia for a holiday. They had a good time too, soaking up the sunshine, bathing in the Adriatic and sampling the local wine. Meanwhile, a few hundred miles away, hundreds of thousands of young, Middle Eastern, Asian and African males were shuffling along on their way to Germany, Austria and Sweden. My relatives completely ignored what in previous eras would have resulted in a declaration of war.

Why was this? Why, with a few exceptions in Hungary, the Czech Republic and Saxony, is there no sense of nationalism; no feeling of economic, social and cultural threat? What's happened to us? And when I say 'us', I mean us in Canada too. We've just voted into office a party that doesn't want to fight ISIS and does want to bring 25,000 Syrian migrants to Canada. We're just as anesthetized as my relatives in England.

How did all this start and since this is a social condition, who exactly started it? And why? And what can be done about it?

I go on walks every day with my dog 'Arthur' along the south shore of Lake Okanagan. He's interested in dog pee. I'm interested in a kind of human pee. I ask myself the questions I've just asked you: who set this migrant exodus rolling and who conditioned us to accept it? Who is the guilty man? Who urinated on the future? I think I know who.

Henry Morgenthau
Henry Morgenthau

First let me set the stage. We are in the fifth year of the war. The Allies have landed in Normandy and the end of Nazi Germany and the Japanese Empire are in sight. Leaders of the 44 Allied Nations meet to decide the economic future of mankind at a resort hotel in Bretton Woods, New Hampshire. The United States is the host and the key delegate, since this is an economic conference, is the U.S. Secretary of the Treasury, one Henry Morgenthau, Jr.

Stripped of its great technical complexity, the Bretton Woods Agreement mapped out a way all the countries of the world could convert their currencies and thus trade with each other more easily. Since world order was being imposed by Allied military victories, this agreement would promote trade, and thus peace. Here's Wikipedia:
In Henry Morgenthau's farewell remarks at the conference, he stated that the establishment of the IMF and the World Bank marked the end of economic nationalism. This meant countries would maintain their national interest, but trade blocks and economic spheres of influence would no longer be their means. The second idea behind the Bretton Woods Conference was joint management of the Western political-economic order, meaning that the foremost industrial democratic nations must lower barriers to trade and the movement of capital, in addition to their responsibility to govern the system.
That phrase, "foremost industrial democratic nations", will come back to haunt us, but first we should look at what Morgenthau's other big projects were at the time. One, because he was a prominent American Jew, was to find a way to extract more Jews from Europe and thus save them from Nazi gas chambers.
In 1943, Morgenthau's Treasury Department approved the World Jewish Congress' plan to rescue Jews through the use of blocked accounts in Switzerland, but the State Department and the British Foreign Office procrastinated further. Morgenthau and his staff persisted in bypassing State and ultimately confronting Roosevelt in January 1944. He obtained the presidential creation of the US War Refugee Board in January 1944. The Board sponsored the Raoul Wallenberg mission to Budapest and allowed an increasing number of Jews to enter the U.S. in 1944 and 1945; as many as 200,000 Jews were saved in this way.
The other project, The Morgenthau Plan, was to turn Germany from an industrial into an agricultural country. If it didn't have any steel mills it couldn't make any tanks and couldn't start another war, was the theory.
In 1944, Morgenthau proposed the Morgenthau Plan for postwar Germany, calling for Germany to lose the heavy industry, and the Ruhr "should not only be stripped of all presently existing industries but so weakened and controlled that it can not in the foreseeable future become an industrial area". Germany would keep its rich farmlands in the east.
Of the three plans, the first mentioned, the plan for American dollar dominance, was the most successful. Economic nationalism was more or less eliminated, aided by a growing number of free trade agreements. But then, instead of becoming a new mercantilism, it turned on itself and began eating America. Jumbo jets to Japan, Korea, Taiwan and China were filled with American businessmen with plans, patents and contracts. While old plants closed in the United States, new, advanced, spacious plants opened abroad.

Let's pause for a moment and consider the irony here. Morgenthau wanted to turn Germany into farmland, but what his economic plan at the Bretton Woods conference managed to do was to turn American industry into farmland, or at least into weed-infested, rusting, post-industrial wasteland. He expected ... they all expected ... American industry would replace the British empire with a new American Empire based on America's prodigious industrial strength and the rest of the world's crushing economic weakness.

What they didn't realize, or if they did realize it, what they didn't suggest, was that if law, order and finance could be extended to low-cost third world countries, then American industry could be moved there with enormous resulting profits to owners and shareholders. Or to put this another way, if you level the financial and legal playing field, economic opportunity will flow to the lowest cost producers.

If you're a student in economic history, it would be interesting to plot where the exact change took place, and when. I'm guessing it was Japan that began to appeal to American industry after the visits by American mathematical physicist W. Edwards Deming, and after the invasion of South Korea by North Korea turned Japan into an American warehouse. Here's a bit about Deming:
Because of his work at the USDA and his expertise in statistics, Deming was sent to Japan in 1946 by the Economic and Scientific Section of the War Department to study agricultural production and related problems in the war-damaged nation. He returned to Japan in 1948 to conduct more studies for the occupation forces.

During these trips, Deming made contact with Japanese statisticians and developed a lasting admiration and fondness for the Japanese people. Deming convinced Kenichi Koyanagi, one of the founding members of the Union of Japanese Scientists and Engineers (JUSE), of the potential of statistical methods in the rebuilding of Japanese industry. Koyanagi, in turn, suggested the idea to JUSE, which invited Deming to teach courses in statistical methods to Japanese industry. Under the auspices of the Supreme Commander of the Allied Powers, Deming arrived in Japan to teach in June 1950. He returned five times as teacher and consultant to Japanese industry.
Well, that's pretty clear. Deming taught the Japanese how to beat American industry by using the most up-to-date Statistical Process Control production systems. But what Morgenthau did was worse. By facilitating trade between low-cost and high-cost countries, he created a situation that spelled doom for the latter. I've suggested this disastrous fallout (there's a word) was principally economic failure in the West, but that's only part of the problem. The same economic mechanism that created the U.S. Dollar as the world reserve currency also let America borrow against its own printing presses. In effect, America could print money the world would accept. This resulted in an enormous boom in living standards in the West. From living in 1100 sq. foot homes; Americans moved to 3,000 sq. foot mansions. From one car or no car to a car for every member of the family. It was a bonanza, a cornucopia that never ran dry.

Which has resulted in today's numb, dumb, fat, stupid society. We are so satiated on cheap goods made in China and bought on credit, we no longer care about ourselves, our families, our nations or, indeed our white race. Truth be told, we're feeling a bit guilty about all this mindless gluttony.

So we lie on the beach under the Adriatic sun while a warrior class from our ancient enemy hikes along the roads behind us. We get a tan while the tan peoples of the world plot their inevitable take-over. This is the fall of Rome writ large. A Jewish financial expert has destroyed a civilization that almost destroyed the Jews. Payback time must feel really sweet in some circles.

I almost forgot to answer the question I posed earlier: what can we do about this? What we can do is to support those people and countries who have begun to push back against globalism, Progressivism and universalism. What we can do is to rediscover ourselves, our communities, our nation and our race.

What we can do is to stand up and be men again.

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