A POET’S ADVICE
A poet is somebody who feels, and who expresses his feelings through words. This may sound easy. It isn’t.
A lot of people think or believe or know they feel – but that’s thinking or believing or knowing; not feeling. And poetry is feeling-not knowing or believing or thinking.
Almost anybody can learn to think or believe or know, but not a single human being can be taught to feel. Why? Because whenever you think or you believe or you know, you’re a lot of other people: but the moment you feel, you’re nobody-but-yourself.
To be nobody-but-yourself-in a world which is doing its best, night and day, to make you everybody else-means to fight the hardest battle which any human being can fight; and never stop fighting.
As for expressing nobody-but-yourself in words, that means working just a little harder than anybody who isn’t a poet can possibly imagine. Why? Because nothing is quite as easy as using words like somebody else. We all of us do exactly this nearly all of the time-and whenever we do it, we are not poets.
If, at the end of your first ten or fifteen years of fighting and working and feeling, you find you’ve written one line of poem, you’ll be very lucky indeed.
And do so my advice to all young people who wish to become poets is: do something easy, like learning how to blow up the world-unless you’re not only willing, but glad, to feel and work and fight till you die.
Does this sound dismal? It isn’t.
It’s the most wonderful life on earth.
Or so I feel.
Humans in Universe
Physiology and biology make it clear that at the outset of graphically recorded history a universally illiterate-but probably not unintelligent-humanity was endowed with innate and spontaneously self-regenerative drives of hunger, thirst, and species regeneration. The a priori chemical, electromagnetic, atomistic, genetic, and synergetic designing of these innate drives apparently was instituted by a wisdom-a formulative capability inherent in Universe-higher than that possessed by any living humans. These drives probably were designed into humans to ensure that human life and the human mind-long unacknowledged as humanity’s highest faculty-ultimately would discover its own significance and would become established and most importantly operative not only aboard planet Earth, but also in respect to vast, locally evidenced aspects of Universe. As such, mind may come not only to demonstrate supremacy over humanity’s physical muscle but also to render forever utterly innocuous and impotent the muscle-augmented weapons and the latter’s ballistic hitting powers. Mind possibly may serve as the essential, anti-entropic (syntropic) function for eternally conserving the omni–interaccommodative, nonsimultaneous, and only partially overlapping, omni–intertransforming, self-regenerating scenario-which we speak of as “Universe.”
In 1851 Seattle, chief of the Suquamish and other Indian tribes around Washington’s Puget Sound, delivered what is considered to be one of the most beautiful and profound environmental statements ever made. The city of Seattle is named for the chief, whose speech was in response to a proposed treaty under which the Indians were persuaded to sell two million acres of land for $150,000.
“How can you buy or sell the sky, the warmth of the land? The idea is strange
If we do not own the freshness of the air and the sparkle of the water, how
can you buy them?
Every part of this earth is sacred to my people. Every shining pine needle, every sandy shore, every mist in the dark woods, every clearing and humming insect is holy in the memory and experience of my people. The sap which courses through the trees carries the memories of the red man.
The white man’s dead forget the country of their birth when they go to walk among the stars. Our dead never forget this beautiful earth, for it is the mother of the red man. We are part of the earth and it is part of us. The perfumed flowers are our sisters; the deer, the horse, the great eagle, these are our brothers. The rocky crests, the juices in the meadows, the body heat of the pony, and man-all belong to the same family.
So, when the Great Chief in Washington sends word that he wishes to buy our land, he asks much of us. The Great Chief sends word he will reserve us a place so that we can live comfortably to ourselves. He will be our father and we will be his children.
So we will consider your offer to buy our land. But it will not be easy. For this land is sacred to us. This shining water that moves in the streams and rivers is not just water but the blood of our ancestors. If we sell you land, you must remember that it is sacred, and you must teach your children that it is sacred and that each ghostly reflection in the clear water of the lakes tells of events and memories in the life of my people. The water’s murmur is the voice of my father’s father.
The rivers are our brothers, they quench our thirst. The rivers carry our canoes, and feed our children. If we sell you our land, you must remember, and teach your children, that the rivers are our brothers and yours, and you must henceforth give the rivers the kindness you would give any brother.
We know that the white man does not understand our ways. One portion of land is the same to him as the next, for he is a stranger who comes in the night and takes from the land whatever he needs. The earth is not his brother, but his enemy, and when he has conquered it, he moves on. He leaves his father’s grave behind, and he does not care. He kidnaps the earth from his children, and he does not care. His father’s grave, and his children’s birthright are forgotten. He treats his mother, the earth, and his brother, the sky, as things to be bought, plundered, sold like sheep or bright beads. His appetite will devour the earth and leave behind only a desert.
I do not know. Our ways are different from your ways. The sight of your cities pains the eyes of the red man. There is no quiet place in the white man’s cities. No place to hear the unfurling of leaves in spring or the rustle of the insect’s wings. The clatter only seems to insult the ears. And what is there to life if a man cannot hear the lonely cry of the whippoorwill or the arguments of the frogs around the pond at night? I am a red man and do not understand. The Indian prefers the soft sound of the wind darting over the face of a pond and the smell of the wind itself, cleansed by a midday rain, or scented with pinon pine.
The air is precious to the red man for all things share the same breath, the beast, the tree, the man, they all share the same breath. The white man does not seem to notice the air he breathes. Like a man dying for many days he is numb to the stench. But if we sell you our land, you must remember that the air is precious to us, that the air shares its spirit with all the life it supports.
The wind that gave our grandfather his first breath also receives his last sigh. And if we sell you our land, you must keep it apart and sacred as a place where even the white man can go to taste the wind that is sweetened by the meadow’s flowers.
You must teach your children that the ground beneath their feet is the ashes of our grandfathers. So that they will respect the land, tell your children that the earth is rich with the lives of our kin. Teach your children that we have taught our children that the earth is our mother. Whatever befalls the earth befalls the sons of the earth. If men spit upon the ground, they spit upon themselves.
This we know: the earth does not belong to man; man belongs to the earth. All things are connected. We may be brothers after all. We shall see. One thing we know which the white man may one day discover: our God is the same God.
You may think now that you own Him as you wish to own our land; but you cannot. He is the God of man, and His compassion is equal for the red man and the white. This earth is precious to Him, and to harm the earth is to heap contempt on its creator. The whites too shall pass; perhaps sooner than all other tribes. Contaminate your bed and you will one night suffocate in your own waste.
But in your perishing you will shine brightly fired by the strength of the God who brought you to this land and for some special purpose gave you dominion over this land and over the red man.
That destiny is a mystery to us, for we do not understand when the buffalo are all slaughtered, the wild horses are tame, the secret comers of the forest heavy with scent of many men and the view of the ripe hills blotted by talking wires.
Where is the thicket? Gone. Where is the eagle? Gone.
The end of living and the beginning of survival.”….
This brings us to World War I. Why was it called the First World War? All wars until this time had been fought in the era when land was the primary wealth. The land was the wealth because it produced the food essential to life. In the land-wealth era of warring the opposing forces took the farmers from the farms and made soldiers of them. They exhausted the farm produced food supplies and trampled down the farms. War was local.
In 1810, only five years after Malthus’s pronouncement of the fundamental inadequacy of life support on planet Earth, the telegraph was invented. It used copper wires to carry its messages. This was the beginning of a new age of advancing technology. The applied findings of science brought about an era in which there was a great increase of metals being interalloyed or interemployed mechanically, chemically, and electrolytically. Metals greatly increased the effectiveness of the land-produced foods. The development of nonrusting, hermetically sealed tin ;ans made possible preservation and distribution of foods to all inhabited portions of our planet Earth. All the new technology of all the advancing industry, which was inaugurated by the production of steel in the mid-nineteenth century, required the use of all the known primary metallic elements in various intercomplementary alloyings.For instance tin cans involved tin from the Malay straits, iron from West Virginia mines, and manganese from southern Russia.
The metals were rarely found under the farmlands or in the lands that belonged to the old lords of the food-productive lands. Metals were found-often, but not always, in mountains-all around the world, in lands of countries remote from one another. Mine ownerships were granted by governments to the first to file claims.
It was the high-seas, intercontinental, international trafficking in these metals that made possible the life-support effectiveness of both farming and fishing. The high-seas trafficking was mastered by the world-around line-of-supply controllers-the venturers and pirates known collectively as the British Empire. This world-around traffic was in turn financed, accounted, and maximally profited in by the international bankers and their letters of credit, bills of exchange, and similar pieces of paper. International banking greatly reduced the necessity for businessmen to travel with their exported goods to collect at the importer’s end. Because the world-around-occurring metals were at the heart of this advance in standards of living for increasing numbers of humans all around the world, the struggle for mastery of this trade by the invisible, behind-the-scenes-contending world power structures ultimately brought about the breakout of the visible, international World War I.
The war was the consequence of the world-power-structure “outs” becoming realistically ambitious to take away from the British “ins” the control of the world’s high-seas lines of supply. The “outs” saw that the British Navy was guarding only the surface of the sea and that there were proven new inventions-the submarine, which could go under the water, and the airplane, which could fly above the water-so the behind-the-scenes world-power-structure “outs” adopted their multidimensional offensive strategy against the two-dimensional world-power-structure “ins.” The invisible-power-structure “outs” puppeted the Germans and their allies. The invisible-power-structure “ins” puppeted Great Britain and her allies. With their underwater strategies the “outs” did severely break down the “ins’ ” line of supply.
J. P. Morgan was the visible fiscal agent for the “in” power structure, operating through Great Britain and her allies. The 1914 industrial productivity in America was enormous, with an even more enormous amount of untapped U.S. metallic resources, particularly of iron and copper, as backup.
Throughout the nineteenth century all the contending invisible world power structures invested heavily in U.S.A.-enterprise equities. Throughout that nineteenth century, the vast resources of the U.S.A. plus the new array of imported European industrial tooling, the North American economy established productivity. The U.S.A. economy took all the industrial machinery that had been invented in England, Germany, France, and Europe in general and reproduced it in America with obvious experience-suggested improvements.
In 1914 World War I started in the Balkans and was “joined” in Belgium and France on the European continent. The British Isles represented the “unsinkable flagship” of the high-seas navy of the masters of the world oceans’ lines of supply. The “unsinkable flagship” commanded the harbors of the European customers of the high-seas-line-of-supply control. If the line of supply that kept the war joined on the European continent broke down completely, then the “outs” would be able to take the British Isles themselves, which, as the “flagship” of the “ins,” would mean the latter’s defeat.
In 1914, three years before the U.S.A. entered the war, J. P. Morgan, as the “Allies’ ” fiscal agent, began to buy in the U.S.A. to offset the line-of-supply losses accomplished by the enemy submarines. Morgan kept buying and buying, but finally, on the basis of sound world-banking finance, which was predicated on the available gold reserve, came the point at which Morgan had bought for the British and their allies an amount of goods from the U.S.A. equaling all the monetary bullion gold in the world available to the “ins’ ” power structure. Despite this historically unprecedented magnitude of the Allied purchasing it had only fractionally tapped the productivity of the U.S.A. So Morgan, buying on behalf of England and her allies, exercised their borrowing “credit” to an extent that bought a total of goods worth twice the amount of gold and silver in the world available to the “ins.” As yet the potential productivity of the U.S.A. was but fractionally articulated. Because the “ability to pay later” credit of the Allied nations could not be stretched any further, the only way to keep the U.S.A. productivity flowing and increasing was to get the U.S.A. itself into the war on the “ins’ ” side, so that it would buy its own productivity in support of its own war effort as well as that of its allies.
By skillful psychology and propaganda the “ins” persuaded America that they were fighting “to save democracy.” I recall, as one of the youth of those times, how enthusiastic everyone became about “saving democracy.” Immediately the U.S.A. government asked the British and their allies, “What do you need over there?” The “ins” replied, “A million trained and armed men, and the ships to carry them to France, and many, many new ships to replace the ships that have been sunk by submarines. We need them desperately to keep carrying the tanks and airplanes, weapons, and munitions to France.” The “ins” also urgently requested that the U.S. Navy be increased in strength to equal the strength of the British Navy and therewith to cope with the German submarines, “while our British Navy keeps the German high-seas fleet bottled up. We want all of this from America.”
America went to work, took over and newly implemented many of the U.S. industries, such as the telephone, telegraph, and power companies, and produced all that was wanted. For the first time in history, from 1914 to 1918, humanity entered upon a comprehensive program of industrial transformation and went from wire to wireless communications; from tracked to trackless transportation; from two-dimensional transport to four-dimensional; from visible structuring and mechanical techniques to invisible-atomic and molecular-structuring and mechanics.
Within one year the million armed and trained U.S.A. soldiers were safely transported to France without the loss of one soldier to the submarines. Arrived in France, they entered the line of battle. With the line of supply once more powerfully re-established by the U.S. Navy and its merchant fleet, it became clear that the “ins” were soon going to win.
J. P. Morgan, now representing the “allied” power structures’ capitalist system’s banks as well as serving as the Allies’ purchasing agent, said to the American Congress, “How are you going to pay for it all?” The American Congress said, “What do you mean, pay for it? This is our own wealth. This is our war to save democracy. We will win the war and then stop the armaments production.” Morgan said, “You have forgotten Alexander Hamilton. The U.S. government doesn’t have any money. You’re going to pay for it all right, but since you don’t have any money, you’re going to have to borrow it all from the banks. You’re going to borrow from me, Mr. Morgan, in order to pay these vast war bills. Then you must raise the money by taxes to pay me back.”
To finance these enormous payments Mr. Morgan and his army of lawyers invented-for the U.S. government-the Liberty Loans and Victory Loans. Then the U.S. Congress invented the income tax.
With the U.S. Congress’s formulating of the legislation that set up the scheme of the annual income tax, “we the people” had, for the first time, a little peek into the poker hands of the wealthy. But only into the amount of their taxable income, not into the principal wealth cards of their poker game.
During World War I, U.S. industrial production had gone to $178 billion. With only $30 billion of monetary gold in the world, this monetary magnitude greatly exceeded any previously experienced controllability of the behind-the-scenes finance power structure of the European “Allies.”
World War lover, won by the Allies, all the countries on both sides of the warring countries are deeply in debt to America. Because the debt to the U.S.A. was twice that of all the gold in the “ins’ ” world, all the countries involved in World War I paid all their gold to the U.S.A. Despite those enormous payments in gold all the countries were as yet deeply in debt to the U.S.A. Thereafter all those countries went off the gold standard.
All the monetary gold bullion paid to the U.S.A. was stored in the mountain vaults of Fort Knox, Kentucky. International trade became completely immobilized, and the U.S.A. found itself having unwittingly become the world’s new financial master. Swiftly it arranged vast trading account loans to the foreign countries. This financing of foreign countries’ purchasing by the U.S.A. credit loans started an import-export boom in the U.S.A., followed by an early 1920s recession and another boom; then, the Great Crash of 1929.
The reasons for the Great Crash go back to the swift technological evolution occurring in the U.S.A. between 1900 and the 1914 beginning of World War I and the U.S.A.’s entry into it in 1917. Most important amongst those techno-economic evolution events are those relating to electrical power. Gold is the most efficient conductor of electricity, silver is the next, and copper is a close third. Of these three gold is the scarcest, silver the next, then copper. Though relatively scarce, copper is the most plentiful of the good electrical conductors. Copper is also nonsparking and therefore makes a safe casing for gunpowder-packed bullets and big gun shells. As a consequence of these conditions, in the one year, 1917, more copper was mined, refined, and manufactured into wire, tubing, sheet, and other end products than in the total cumulative production of all the years of all human history before 1917.
With the war over all the copper that had been mined and put into generators and conductors did not go back into the mines nor did it rot.
World War I was not an agrarian, but an inanimate-energy and power-driven, industrial-production war-with the generating power coming from Niagara and other waterfalls as well as from coal and petroleum. For the first time the U.S.A. was generating power with oil-burning steam turbines.
When the war was over, all this power-production equipment was still in prime operating condition. There was enormous potential productivity-a wealth of wealth-producing capability that had never before existed, let alone as a consequence of war. The production capacity that had been established was so great as to have been able to produce, within a two-year span, all those ships, trucks, and armaments. What was the U.S.A. economy going to do with its new industrial gianthood? It was the vastness of this unexpected, government-funded production wealth and its ownership by corporate stockholders that generated many negative thoughts about the moral validity of war profiteering.
There were many desirable and useful items that could be mass-produced and successfully marketed. Young people wanted automobiles, but automobiles were capital equipment. In 1920 capital equipment was sold only for cash. There were enough affluent people in post-World-War-I U.S.A. to provide an easy market for a limited production of automobiles. In 1920 there were no bank-supported time payment sales in the retail trade. The banks would accept chattel mortgages and time payments on large mobile capital goods, such as trucking equipment, for large, rich corporations. Banks would not consider risking their money on such perishable, runaway-with-able capital equipment as the privately owned automobile.
Because the banks would not finance the buying of automobiles and so many money-earning but capital-less young people wanted them, shyster loaners appeared who were tough followers of their borrowers when they were in arrears. Between the ever-increasing time-payment patronage and the affluent, a market for automobiles was opening that could support mass production.
In 1922 there were about 125 independent automobile companies. They were mostly headed by colorful automobile-designing and -racing individuals for whom most of the companies were named. They survived by individually striving each year to produce an entirely new and better automobile, most of which were costly. Many accepted orders for more than they had the mechanical capability to produce. Their hometown financiers would back these auto-designing geniuses so that they could buy better production tooling and build larger factories. Wall Street sold swiftly increasing numbers of shares in auto companies. More and more of them went broke for lack of production, distribution, and maintenance experience on the part of the auto-designer managements.
In 1926 the Wall Street brokerage house of Dillon, Read and Co. made a comprehensive cost study of the auto-production field. They found that 130,000 cars a year was, in 1926, the minimum that could be accounted as mass production and sold at production prices. Any less production had to carry a much higher price tag. To warrant the latter, the cars had to be superlatively excellent. The English-built Rolls-Royce brought the highest price on the American market. There was fierce competition among Packard, Peerless, Cadillac, Pierce-Arrow, Locomobile, Lozier, Leland, and others for the top American car. All of those premium cars’ frames, bodies, engines, and parts were manufactured within their own factories. There were several “in-between classes, such as that of the Buick. Most of the 100 or so cars in this intermediate range were assembled from special engines, frames, and other parts made by independent manufacturers.
The mortality in auto companies was great. Dillon, Read led Wall Street out of its dilemma by buying several almost bankrupt companies, closely located to one another, such as those of the Dodge family, whose joint production capacity topped the 130,000 units per year mass-production figure.
They named their new venture the Chrysler Company. Dillon, Read fired the auto company presidents, who were primarily interested in new-car-designing, and replaced them with production engineers. Wall Street followed suit and put in production engineers as presidents of all the auto companies-except Ford, who owned his company outright and had no obligation to Wall Street and its legion of stock buyers. Old Henry himself was already the conceiver, initiator, and artist-master of mass production.
Because the American public was in love with the annual automobile shows, the Wall Street financiers who had thrown out all the colorful auto-designer presidents started a new game by setting up the Madison A venue advertising industry, which hired artists who knew how to use the new (1920) airbrush to make beautiful drawings of only superficially-not mechanically-new dream cars. They made drawings of the new models, which required only superficial mudguard and radiator changes with no design changes in the hidden parts. Parts were purchased by the big companies from smaller, highly competitive parts manufacturers operating in the vicinity of Detroit.
This was the beginning of the downfall of the world-esteemed integrity of Yankee ingenuity, which was frequently, forthrightly, and often naively manifest in American business. Big business in the U.S.A. set out to make money deceitfully-by fake “new models”-and engineering design advance was replaced by ”style” design change.
In the late twenties first Ford and then General Motors instituted their own time-financing corporations. The bankers of America said, “Let them have it, they’ll be sorry-autos, phew! We don’t want to go around trying to recover these banged-up autos when the borrower is in default.” The bankers said, “It is very immoral to buy automobiles ‘on time.’ They are just a luxury.”
What the bankers did like to support in the new mass productivity was tractor-driven farm machinery. Farm machinery was easy to sell. As the farmer sat atop the demonstration plowing or harvesting equipment, with its power to go through the fields doing an amount of work in a day equal to what had previously taken him weeks, he said to himself, “I can make more money and also take it a little easier.” So the bankers approved the financing of the production and marketing of the farm machinery. They held a chattel mortgage on the machinery and a mortgage on the farmland itself and all its buildings. The bankers loved that. There was enthusiastic bank acceptance of the selling of such equipment “on time” to the farmers. The bankers did not consider this “immoral.” The farmer was “producing food wealth.” The automobilist was “just joy riding.”
Then there came a very bad hog market in 1926. Many farmers were unable to make the payments on their power-driven equipment. The local country banks foreclosed on the delinquent farmers’ mortgages and took away their farms and machinery. The bankers had assumed that the farms were going to be readily saleable. It turned out, however, that there were not so many non farmers waiting to become farmers, and most of the real farmers had been put out of business by the bank foreclosures so they couldn’t buy back their own farms. There were no city people eager to go out and buy one of those farms. “How you gonna keep them down on the farm, after they’ve seen Paree?” were the words of a popular World War I song.
So the dust bowls developed as the upturned, unsown soil began to blow off the farms. It is relevant to note that, in 1900, 90 percent of U.S.A. citizens were living and working on the farms; in 1979 only 7 percent were on the farms, mostly as local supervisors for big, absent-ownership corporations. The owners of the farmlands today are no longer “farmers” or even individual humans-they are the great business conglomerates. What began in 1934 as government subsidies and loans to farmers for farm machinery, later to keep acreage out of production, would by 1978 result in President Carter making enormous payments to appease big corporations for cutting off vital grain and other strategic shipments to Russia. Next, the U.S. government would make enormous subsidies to bail out large corporations such as Lockheed and Chrysler, which as basic military suppliers the U.S. government could not allow to go bankrupt. Eventually the U.S. taxpayers will be asked to make “free-of-risk” bail-outs of “private” enterprises, corporations with initial physical assets worth over a billion dollars classifed as risk enterprises.
We now return to the 1926-’27-’28-’29 sequence of events developing from selling the farmers’ machinery on the bankers’ drop-dead terms (mortgage means “on death terms”). In 1927 and 1928 the bigger Western city banks began to foreclose on their local country banks that had financed the farm machinery sales and had been borrowing from the bigger city banks to cover their unprecedented1y expanded loaning. First the little and then the successively bigger banks found that they had foreclosed on farmhouses that had no indoor toilets, many with roofs falling in, barns in poor condition, with the replevined farm machinery rusting out in the open-and no customers.
Word of the bad news gradually went around; small bank “runs” began; and in 1929 came the Great Crash in the stock market. All business went from worse to worser. Unemployment multiplied. Prices steadily dropped. Nobody had money with which to buy. Bigger and bigger banks had to foreclose on smaller banks, until finally in early 1933 there came one day in which 5000 banks closed their doors to stop “the run” on their funds.
People were dismayed and both individually and collectively helpless to do anything to combat the economic collapse. The economy had gone to pieces. People did not parade and protest. They became so low in spirit and listless that they just sat around silently in their homes or in public places. The New York subway stations were filled with people sleeping on the concrete platforms and stairways. No religious organizations were willing to let people sleep in their churches.
There came a “pecking-order” point when the central Chicago banks foreclosed on all the other big Western city banks-followed by the big New York City central banks foreclosing on Chicago’s central banks. Finally came the denouement, when the big New York banks found themselves about to close because they were already behind-the-scenes insolvent. This occasioned the U.S. Congress voting to accelerate by four months the presidential inauguration of Franklin Delano Roosevelt who, minutes after taking his oath of office, signed the Bank Moratorium, which momentarily suspended the acknowledgment of the death of the wealthy landowners’ banking system that had lost all or much of its depositors’ money. About a month later Congress voted to the President of the U.S.A. the ability to control all money. Months later again the U.S. Supreme Court upheld that legislation. The U.S.A. citizens themselves and their government had become the wealth resource “of last recourse.” The underwriting wealth belongs to all the people and not to the few. That happened also to be the description of socialism.
The 150-year-long “infinite wealth” poker hand and its uncalled bluffing was over. The called hands were suddenly down. It turned out that the “wealthys'” wealth was nonexistent. Their marble-walled, steel-barred, visibly vaulted banks had been psychologically attractive to the depositors, who preferred to have their earnings and savings deposited along with the wealth of the powerfully rich. What the banks had been doing was to loan the people’s deposits to other people. The banks had no money themselves. What they had done was to capitalize their land at their self-asserted value and had been credited with that value of stock in the bank’s ownership.
In 1933, for the first time ever, the hands of the U.S. American wealthy were exposed (and by inference, all land-based capitalism everywhere around the world)-most were money empty. Their land and multiservanted mansion values dropped to almost nothing. Nobody had the almost-nothing amount of money to buy those richly housed estates. There was one exception to the last statement-the Vatican-administered Roman Catholic Church’s world organization, which for a pittance acquired many extraordinary properties at that time, which it converted into monasteries and con. vents, colleges and schools.
The game of “deedable land wealth” had been a bluff from its very beginning-multimillennia ago, when that little man on a horse, armed with a club, first rode up to the giant shepherd leader of a tribe and said, bluffingly, “It’s very dangerous out here in the wilderness for beautiful sheep such as yours,” and the shepherd leader’s ultimate coercion into accepting “protection” from the claiming and proclaiming “owner” of the land.
Landownership did not go back to an act of God. All the kings always had their priests present when the land claimage was made by their explorers. The priests planted their crosses to confirm that the king’s ownership was blessed by God. The Roman Catholic Church, starting in its emperor-pope days, has been in the deeded-land business for “going on” 2000 years. It is as yet the world’s largest real estate owner. Real, a Spanish word, means “royal”-the succession of king-deeded estate lands.
With the bluff of wealth over in March 1933, almost all business in America stopped. On the inauguration of Franklin Delano Roosevelt the emergency was so absolute that Congress voted unanimously for whatever corrective measures the New Deal administration prescribed.
Roosevelt and his advisors said, “One thing is clear. Despite the emergency America abhors socialism. Americans don’t like the assumption that everybody is equal. Americans are so independent, they don’t feel at all equal. They don’t like socialism, but,” said the New Deal leaders, “the fact is that we, the American people, are going to have to guarantee our own bank accounts. People don’t like to keep their money under their mattresses and prefer to put it into a bank, so we will have to do what we can to rehabilitate the banks. We the people acting unanimously through our government are going to have to guarantee the safety of each deposit in the banks to a convincingly substantial amount-$5000. We will leave the bank in ownership of the management of the stockholders of those banks that, by virtue of the presidential moratorium, are as yet theoretically alive, and hope that, with our guaranteeing, regulation, and supervising, many of thepl will reopen and will be able to progressively accredit their depositors with some percentage of their original deposits.
“But let us not deceive ourselves. With the government of the people guaranteeing the bank accounts, it becomes, in operating fact, socialism. On the other hand people themselves know so little about banking, credit concepts, and the history of power structures that they will not know that they have adopted socialism, since the government has not taken ‘possession’ of the banks. Society will think well of ‘we the people’ as the government, guaranteeing the new deposits in the banks up to $5000.”
Society likes the idea of a bank as a safekeeping device. People have always believed that when they put their money in the bank, it stayed there. They had no idea it went out on loan within minutes after it came in. They were completely hoodwinked by the appearance of the banks as safe, fireproof, and robberproof depositories of their earnings. Even today, in the last twenty years of the twentieth century, people know little more about banks than they did during the 1929 Crash or at the depth of the Depression in 1932, when all they knew was that they had lost their deposits in most of them.
In 1933, ’34, ’35, and ’36 the New Deal and the U.S. Congress diligently investigated the banking system and the practices of its most powerful leaders. They found many malpractices, which we will discuss later. Most prominently they found the banks loaded with worthless mortgages on properties that were unsaleable because uninhabitable-mortgages on buildings without roofs, bathrooms, etc.
The government said, “The first thing we must do is make those mortgages we’ve inherited worth something.” At this point the American government dictated the banking strategy and started refinancing of the building industry. The so-called building “industry” was already 2000 years behind the arts of building ships of the sea and sky, which ships of the sea and sky are, in fact, environment-controlling structures in exactly the same sense that land buildings are environment-controlling structures.
While the design of the seagoing and airgoing environment controls are floatably and flyably weight-considerate and semiautonomous because they generate their own power, desalinate their own water, etc., there is no weight consideration in the designing of the land-anchored environment controls. They don’t have to float or fly. They are utterly dependent on sewers, waterlines, electric lines, highway maintenance. They are utterly controlled by the prime landowners, their building codes and readily imposable legal restrictions-all based on the real estates’ ownership and control of the highways-sewers-waterlines-the metabolic “guts” of all U.S.A. towns and cities.
When the government owns the wealth and controls the issuance of its money, it is socialism. The New Deal was not trying to deceive the people but was engaged in a rescue operation of the first order and was hopeful of not irritating the people psychologically by what it seemed was critically mandatory to accomplish.
Paradoxically, the first people they irritated-greatly-were yesterday’s rich, in particular those who were as yet living on the dividends and interest of as yet solvent industrial corporations’ stocks and bonds. In fear of the New Deal they sought to discredit Roosevelt by a word-of-mouth campaign. From 1933 to 1940 individual members of rich gentlemen’s clubs of New York were ostracized from membership in the rudest manner by “the members” if they were not heard to speak frequently of “that son-of-a-bitch in the White House.”
Franklin Roosevelt and his advisors said, in effect, “We’ve got to do what we feel is best for the people by whatever name the ‘best’ may bear. We’ve got them depositing again in the banks and are rehabilitating all those mortgaged properties which we have inherited by loaning the new owners of the properties funds at negative interest provided they will rehabilitate the property-reroof or put in a bathroom, etc.”
To those who understood some of its intricacies, everything was now out in the open about the world of banking. The New Deal said it was going to prohibit usurious rates of interest-“the banks must earn enough to keep themselves going, but only can charge 1½ percent for interest.” Banks were regulated just like the Post Office. No banker had authority beyond that of a postmaster. The New Deal completely separated from banking what Morgan and many of the private banks had been doing-taking deposit money and putting it into common stocks and even into the bankers’ own highly speculative private ventures. Thus came the New Deal’s Securities and Exchange Commission and the complete separation of banking and initial risk financing–or, at least, supposedly so. Banks’ trust departments could as yet buy and sell corporate venture stocks for clients’ accounts however.
There were a number of individual bankers who went far beyond unwise banking practices and who, as individuals, took personal advantage of the information they had of individual depositors’ affairs and of their privilege as top bank officers to do truly inimical things to enrich their own positions. Few today remember that a half-century ago a number of New York and Chicago’s top bankers were sentenced into penitentiaries-the New Yorkers into Sing Sing-the senior partner of J. P. Morgan and Company, the president of the National City Bank, the president of Chase Bank. Every one of them had been found to be doing reprehensible financial tricks. They were selling their own friends short. They were opening their friends’ mail and manipulating the stock market. They were manipulating everybody. They were way overstepping the moral limits of the privileges ethically existent for officers in the banking game, so a great housecleaning was done by the New Deal.
To accomplish their restartings in all areas ofthe U.S.A. economic system the New Deal also set up the Works Progress Administration (to get people jobs) and the Reconstruction Finance Corporation (to get the big industries going).
Amongst the first of the New Deal’s emergency acts of 1933 was the establishment of the Works Progress Administration, which provided jobs for approximately anyone who wanted them-artists, mathematicians, etc., as well as all white- and blue-collar workers and, of course, all day laborers and such.
Then, pressed by the labor unions and the political urge to avoid the characteristics of socialism and get the heretofore unemployed millions off WPA-the New Deal’s Works Progress Administration-the government financed new buildings and granted mortgages for longer and longer periods to encourage people to undertake the production of much-needed homes and other buildings. It must be noted that the rejuvenated building industry was reset in motion as a concession to the building trades and a move to increase employment, not as a much-needed evolutionary advance in the art of human environment controlling. The unions were. so strong as to be able to push the New Deal very hard in the direction of resuming only yesterday’s multifoldedly inefficient “one-ofr’ building design techniques and materials as the activity in which they could establish maximum employment. Technically ignorant bank officers became the authorities who alone judged the design validity of the structures and architectural acceptability of the building projects, funds for the building of which they authorized as mortgage-secured loans of their bank depositors’ money.
The New Deal went on to rationalize its strategic acts by arguing to itself, “In order to continue as a nation we must have our national defense. Since it is established that there is nowhere nearly enough life support to go around in this world, if we don’t have a formidable national defense, we’re going to be successfully attacked by hungry enemies. Our, national defense can’t carry on without steel and the generation of electricity, the production of chemicals, and other imperative industrial items.”
The FDR team soon concluded that the industries producing those absolute “defense” necessities were to be called our “prime contractors.” The prime contractors must be kept going at any cQst. “So we’ll give war-production orders to the prime contractors to produce such-and-such goods. The contractors with signed government contracts can then go to the banks and borrow the money to pay their overhead and to buy the materials and power and to pay the wages to produce the goods. Then we the government will pay the producers for those finished goods and services, and they can payoff their loans from the bank. The money paid by the prime contractors as wages will give people buying power, which will allow them to start other economic production systems going.” This became a monetary irrigation system (still in use today in 1980 U.S.A. affairs), which works at a rate providing about ten recirculations in a year following upon each major war order initiated by and paid for by the government.
In the depths of the Depression in 1932, when you could buy a meal for five cents and the finest of shirts for one dollar, the Reconstruction Finance Corporation went much further. It gave U.S. Steel $85 million worth of new rolling equipment (in 1980 U.S. currency that would be close to a billion dollars), etc., etc.
The U.S.A.’s Reconstruction Finance Corporation had a secondary government machinery-owning outfit that loaned all these prime contracting companies new equipment with which to fill their government orders. What the New Deal did in fact was to socialize the prime contractor corporations instead of the people. This hid the fact of socialism from the world in general. Socializing the prime contractor corporations indirectly benefited the people themselves. In this way the New Deal seemingly didn’t give money to the corporations-just orders. The U.S.A.-established and -financed RFC loaned the prime contractors all the money they needed to buy all the equipment. But in the end the government rarely collected on the loans and finally just forgave the machinery borrowers altogether, selling them the equipment for very low “nominal” sums.
The New Deal had also pledged itself at outset to take care of the “forgotten man.” The government voted minimum-wage limits of a substantial magnitude. The economy was going again. People were getting more and more jobs-how many depended upon how many prime contracts the government gave out. World War II was clearly looming ahead. The New Deal said, “We have to be prepared” . . . and their “preparedness” ordering increased. Jobs increased rapidly. Empty buildings filled.
There were a number of great corporations whose businesses had practically stopped by 1933, but those businesses had now been set in healthy motion once more under the New Deal’s socializing of the prime contractors. Franklin Roosevelt said to the heads of the great corporations that had not gone “bust,” “Everyone of you has a large surplus that you held on to, in fear, through the Depression. We want you to spend your surpluses in research and development of new equipment. Since the early clipper ship days, it has always been a function of a ‘fundamental risk enterprise’ that the enterprise use some of its profits to buy itself new and better equipment-a new and better ship-with the enterprise that is doing the prime risk-taking by investing in the new equipment, thereby requalifying for the privileges and rewards granted by governments for wise risking, daring execution, and good management. ”
FDR said, “We want you enterprisers to ‘modernize.”’ But U.S.A. big corporate management said, in unison, “We won’t do that. It is much too risky a time to use any of our surplus.” They knew the oncoming World War II was forcing the government to see that their plants were modernized, so by holding out they forced the government to take over both the risk and cost of modernizing. Heretofore in the history of private enterprise research and development-of more efficient new plants and equipment-had been funded from the enterprise’s “surplus” earnings-i.e., from earnings prudently withheld from distribution to stockholders to ensure the continuing strength of the enterprise.
Then FDR’s U.S.A. Treasury, with all FDR’s lawyers’ advice, ruled that the large private-enterprise corporations could make their new plant expansion and equipment improvements and charge the costs to operating expenses, which expenses were then to be deducted from new earnings before calculating income taxes. This amounted, in fact, to an indirect subsidy to cover all new-equipment acquisition. The U.S.A. Treasury next ruled that all research and development-“R and D”-was thereafter also to be considered by the U.S.A. Treasury Department as “an operating expense” and also to be deducted from income before calculating income taxes. The U.S.A. thereby eliminated almost all the “risks” of private enterprise.
Next Henry Luce, representing news publishers in America-the newspapers and magazines-went to Roosevelt and said, “Your democracy needs its news. You have to have some way for the people to know what’s going on.” “Yes,” said FDR. Luce went on, “We publishers can’t afford to publish the news. The prices people are willing to pay for the news won’t pay for the publications. The newspapers and magazines are only paid for by advertising, and the New Deal has no allowance for advertising in its operating procedures.” The New Deal then ruled that advertising was henceforth to be classified as research and development, therefore deductible from gross income as an operating expense before calculating taxes. Thus advertising became a hidden subsidy of very great size-about $7 billion a year at that time-hidden in tax-calculation procedures. The subsidy was so great as to cover the founding of what has come to be known as “Madison Avenue.”
While the government was doing all this, the Congress passed strict and comprehensive rent controls, bank-loan-interest controls, and price controls of every kind. It was pure socialism. It had to be done that way. There was no question.
The Securities and Exchange Commission reforms removed J. P. Morgan’s two directors from the boards of almost everyone of the U.S.A.’s great corporations-except Henry Ford’s-whose interlocking directorships had formerly given Morgan prime control over U.S.A. industry. With the termination of Morgan’s control of all the major corporation boards such as those of U.S. Steel and General Motors, these great corporations’ managements found that they were no longer beholden to J. P. Morgan, and only to their stockholders. “All we have to do now to hold our jobs is to make money for the stockholders.”
At this moment the U.S.A. had evolved into a managerial capitalism, in contradistinction to the now-defunct, invisible “finance capitalism” of which J. P. Morgan had been the master.
What became noticeable at this time was the uniformity of position taken by all the great corporation managements in respect to actions taken by the New Deal-for instance, the great corporations’ across-the-board refusal to expend surplus on research and development.
To discover how that came about it first must be realized that the industrial-enterprise underwriting and expansion-financing of the private banking houses of Wall Street could not have been carried on without the advice, contract-writing services, and legal planning of the world’s most powerful and most widely informed legal brains. As a consequence the corporation law firms of Wall Street, New York, were peopled with the most astute thinkers and tacticians of America-if not of the whole world. When the Great Crash of 1929 came and events of the Depression occurred, as already related (and the great poker hands were called, and the New Deal had prosecuted the guilty and housecleaned the system and socialized the prime contractors, etc.), it was the counsel of Wall Street lawyers that governed the positions taken by the new, self-perpetuating, industrial-giants’ managements. It was the former J. P. Morgan’s and other financiers’ lawyers who now counseled all the as-yet-solvent big-industry managements to guard their surplus and refuse to cooperate with the New Deal.
Furthermore the Wall Street lawyers could see clearly what the public couldn’t see-i.e., that while the New Deal was unilaterally socializing the system, it was doing so without exacting any contractual obligation on the corporations to acknowledge the government’s economic recovery strategies. The corporations gave no legal acknowledgment of their socialized status. It was clear to the Wall Street lawyers that without such contractual acknowledgment the government socializing was a one-sided, voluntary commitment on the part of the political party in power. Therefore, in fact, none of the big corporations had lost their free-enterprise independence by accepting the enormous government rehabilitation expenditures.
Since the Wall Street lawyers and brethren in other parts of the country were called upon to fill the Supreme Court bench from which body they could determine the province of “free enterprise,” the lawyers reasoned somewhat as follows: “A socialized system-as clearly manifest by the U.S.S.R.-cannot tolerate free enterprise’s freedom of initiative. There is no lucrative law practice in socialized states–ergo, if we are to survive, we lawyers on Wall Street had best figure out how to go about keeping the fundamentals of capitalism alive amongst the few great industrial corporations that as yet remain solvent despite the 1929 and 1933 Depression events.”
The Wall Street lawyers saw clearly that it was those surviving corporations’ undistributed surplus which certified that capitalism had not gone entirely bankrupt despite its banking system’s failure.
Operating invisibly behind the “skirts” of the as-yet-live corporations, the Wall Street lawyers very informally, but very seriously, organized far-ahead-in-time research-and-study teams consisting of the most astute corporation lawyers to be found in America. From these teams’ realistic conceptioning they formulated a grand strategy that would keep capitalism’s private enterprjse alive and prospering indefinitely as run invisibly but absolutely legally by the lawyers.
The latter’s research discovered that they would not soon be able to popularly and legally overthrow the New Deal. It was clear that not until World War II was over might they find conditions suitable for untying all the economic controls established by the New Deal.
It is appropriate at this point to do some reviewing of evolutionary changes that had been transpiring in the nature of capitalism.
It all starts with the land-based capitalism, a capitalism maintained by whoever seized, successfully defended, and controlled the land-ergo, owned the land. Those producing food and life support on the lands were all subservient to, and paid tribute to, the great landowners. In land capitalism whoever owned the fertile fields controlled all the wealth to be made from that land. Land capitalism dealt with nature’s own metabolic productivity.
Then private enterprise and finance capitalism came to discover what could be done with mass-produced metals to multiply the value of the land-produced, life-support metabolics.
In the mid-nineteenth century mass production of steel, for the first time in history, suddenly gave humans the capability of producing long-span beams, whereby they were able to produce large-enough, semifireproof, and powerful structures to move more and more wealth-production work under cover. Western-world capitalism began to produce wealth under cover in addition to that produced out in the field. To make the tin cans in the factory to can the food produced in the fields, or to take the cotton produced in the fields and mass-produce cotton cloth, became known as “value-added-by-manufacture.” Value-added-by-manufacturing was accomplished primarily with metals-metal buildings, metal machinery, metal tools, metal sea and land transportation systems, and, ofttimes, metal end products.
As already mentioned, it was the new, world-around, metals sources that brought about the name World War I.
Suddenly we had a completely new form of capitalism, which required both the large-scale financing and integration of metals, mines and mine-owners, metals refining and shaping into wholesaleable forms, all to be established around the world by the world masters of the great line of supply. The world line of metals-and-alloy supply was essential in producing all the extraordinarily productive new machinery and that machinery’s delivery system, as was the generation and delivery of the unprecedentedly vast amounts of inanimate energy as electricity.
This new form of the world power structure’s capitalism-by ownership of the mines and metals working all around the world-we call the metals and mining capitalism. Whoever owned the mines had incredible power, but never as great as those who controlled the line of their supply. Combining the two, (1) the mines and metals-producing industry and (2) the line of supply, we have the world power structure that operated as the first supranational, world-around-integrated, metals cartels. They were out of reach of the laws of anyone country, in a metals cartels capitalism. Combining these two with (3) the absolute need of the large financing and credit at magnitudes rarely affordable by anyone individual, we find finance capitalism integrating the world operation.
At any rate we now understand why the 1914-18 war was called World War I. It was inherently a war for mastery of the world’s metallic resources and their world-around physical integration, controlling, and exploitation.
The amount of metal productivity of World War I was so great that, after the war, as the arms products became obsolete and were displaced by new design products, the metal contained in the ever vaster amounts of obsolete products began to come back into circulation as scrap. The scrap resources swiftly increased. The Morgan-escaped managerial capitalists said, “I’m going to keep my job if we pay our stockholders dividends-the rate at which we can pay dividends is directly dependent upon the rate at which our production wheels go around. To keep our wheels going around, we don’t care whether we are using scrap metals or mined metals. As a matter of fact, the metals-as-scrap are usually more refined than the metals coming out of the mines. They cost less, so we’re better off using the scrap-whether from obsolete buildings, machinery, armaments, railways, or ships.” Formerly Morgan had insisted on all his controlled manufacturing corporations acquiring all their metal stocks only from newly mined, refined, and wholesale “shaped” stocks.
The mining companies found that industry would not buy ingots of their metals. They found that they had to turn their metals into tubes, bars, sheet, plate, wire, and a great variety of sizes and shapes. Wall Street’s finance capitalism, therefore, underwrote the development of a host of metals-shaping industries who were the automatic customers of the only-ingot-producing, metals-mining corporations.
The post-World War I mineowner-capitalists began gradually to be washed out of the game by virtue of the Morgan-emancipated managerial capitalists saying, “Our job is to keep the wheels going around.” Wheels-going-around producing saleable goods from scrap metals became strategic.
Up to the time of World War 1 the owners of the factories (Mr. Morgan et al.) said, “We put you in as management to make a profit out of this factory.” If the management said, “Give us a new piece of machinery,” the owners said, “New piece of machinery! What are you talking about? We put you in to make money out of our machinery. You are fired.” Change was anathema to the J. P. Morgan-type of financier. Scientists would come to Mr. Morgan and say, “Mr. Morgan, 1 can show you how to make steel so that it won’t rust.” “Young man! The more it rusts, the more I sell. How crazy you must be! Get the doctor to look this man over, he’s obviously a lunatic-take those mad papers out of his pocket and put them in my desk drawer.”
But change was welcomed by the late-1930s’ managerial capitalism. New designs called for more whirling of their production wheels. The change came in the form of many new armament designs for the clearly approaching World War II. The new designs released as “scrap” the metals from obsolete designs.
Concurrently, with the New Deal’s reforms and controls, the wage-earners were now getting a fairer share of the national income, and the economy was prospering-particularly so as the New Deal began officially to remember the “forgotten man.” Congress put a dollar cellar under the wages and elevated worker earnings enough to produce minor affluence and security for labor in general.
Just before the U.S.A. entered World War II, the Wall Street lawyers instructed the heads of great corporations to say to Roosevelt, “We heads of the corporations of America were not elected by the American people. We were chosen by our stockholders. Our job is to make profits for our stockholders. At the time of World War I a lot of business people were called ‘profiteers.’ As we enter into World War II war production, we don’t want to be called ‘immoral profiteers.’ If you want cooperation from us, Mr. Roosevelt, you as government are going to have to be the one to initiate our corporations’ being properly rewarded for our cooperation.”
Mr. Roosevelt said, “I agree. You are beholden to your stockholders, so you are going to have to pay them dividends.” Coping with this dilemma, the United States Treasury Department agreed that it was legitimate for the industrial corporations to make up to l2-percent profit per each product turnover. The New Deal said, “We the people, as government, are, however, going to renegotiate with you all the time, continually inspect you, to be sure you are really earning your profits.” As a consequence of all the continuous renegotiation by the government, those U.S.A. corporations earned an average of 10 percent on every turnover. This meant that in World War II for every annual war budget-running at first at $70 billion per year10 percent, or $7 billion, was earmarked for distribution to the stockholders of the corporations. Complete socialization of the stockholders of the prime U.S.A. corporations was accomplished.
Amongst the prime contractors identified by the New Deal were all the leading automobile companies. For example, Chrysler was picked out to produce the war tanks. With their powerful position established with the government, the U.S.A. automobile manufacturers, on being asked to convert all of their productivity to war armaments, agreed amongst themselves to put into storage all of their production tooling and to resume their postwar auto production with the models they were last producing at outset of war. New production tooling would cost them several billions of dollars. They had their Madison A venue companies grind out advertisements showing the G.!. soldiers saying, “Please keep everything the same at home until I return.”
Because Germany’s, Italy’s, and Japan’s production ‘equipmen.t was destroyed during World War II, they were free after the war to start using the newest war-advanced technology in both the designing and the production of their automobiles. That was the beginning of the end for the U.S.A.’s prestige as the world’s technological leader. The U.S.A. post-World War II cars were inherently seven years passe in contrast to the smaller, faster foreign cars. The “Big Three” American auto producers undertook to manufacture while keeping the foreign cars off the market and while they themselves exploited America’s market need for a geographically expanding economy’s transportation.
In the late 1960s the “Big Three” automobile companies of America found that their distributors were disenchanted with decreasing financial returns and with frequent bankruptcy. To hold their distributors G.M., Ford and Chrysler deliberately manufactured a few of their mechanically well-designed parts with inferior materials that were guaranteed to deteriorate electrolytically or otherwise. The replacement of these parts guaranteed that all the distributors’ car buyers would have to return to them for service on a high-frequency basis, at which time the distributor would replace the parts catalogue-priced so high that the distributor was guaranteed a profitable business. This continuing deceit of the customers-we the people-was the beginning of the end of the American automobile business and the once great world esteem for Uncle Sam. U.S.A. discreditation has been brought about without the U.S.A. people’s knowledge of the money-maker-world’s invisible cheating.
Throughout all pre-World War II years employers had maintained that unemployed people were unemployed because they were unqualified for survival, socially expendable. Then World War II saw young people deployed on war tasks all around the world. In view of this loss of labor vast amounts of automation were incorporated in the U.S.A.’s home-front war production. With the war over, the government found the cream of its youth all unemployed, and because of the automation there were no jobs in sight. Because they were the proven “cream of the youth,” no one could say they were unemployed because they were unqualified, so the as-yet-operative New Deal created the G.I. Bill, which sent all those young people to prepaid college and university educations.
By World War II’s end labor was earning so much that, for the first time, it was feeling truly secure, affluent, and successful. Emulating the pattern of the rich, individuals of labor were becoming little capitalists, with many enjoying the realization of their own home and land, with two shiny new post-World War II cars in the garage, their kids going to college, and some savings in the bank. The workers began buying shares in IBM and other superpromising private enterprise companies.
The Wall Street lawyers, being astute observers of such matters, realized that this labor affluence had brought about a psychological reorientation of the body politic. People no longer remembered or felt the depression of spirit that was experienced in the Great Depression of social economics following the Great Crash. The Wall Street lawyers’ grand strategists saw this as the time for breaking through the New Deal’s hold on government, an event which, up to that time, seemed impossible. The lawyers said, “Whoever can get the victorious, supreme-command American general of World War II as their candidate for President will be able to get the presidency.” They captured Eisenhower. Eisenhower had no political conviction, one way or the other. His vanity was excited at the idea of becoming president of his country.
The Wall Street lawyers explained to Eisenhower the prevailing new psychology of affluence and convinced him that the new affluent majority would elect a Republican. Thus they successfully persuaded him to be a Republican. With the healthy economy the new wage-earner capitalists, with a vested interest in maintaining the status quo, readily voted for Eisenhower on the Republican ticket. Eisenhower’s Wall Street lawyer-managers explained to him that he had been able to win the war because of the vision, courage, and ingenuity and the productive power of American free enterprise. They convinced Eisenhower that “the U.S.A. is, in fact, free enterprise.” They also convinced him that the Democrats’ New Deal was socialism and therefore the inherent enemy of free enterprise.
As soon as the Wall Street lawyers had Eisenhower in office in 1952, they instructed him to break loose all the economic controls of the New Deal. They had him cut all price controls, all rent controls, all interest-rate controls; they had him terminate anything that was stymieing the making of big money by big business. For instance, they persuaded Eisenhower to allow the insurance companies to invest their vast funds in common stocks. Before Ike’s liberation of the insurance companies they were allowed to put their funds only in “Class A” bonds and similar investments. Cheered by the capitalist-owned sector of the press, his Wall Street lawyer-advisors for a long time had Ike feeling like a great liberator.
The Wall Street lawyers’ grand strategists put the Wall Street lawyer John Foster Dulles in as Ike’s Secretary of State to dictate the American foreign policy of “Soviet containment,” and Foster Dulles’s Wall Street lawyer brother Allen Dulles was put in as head of a new brand of absolutely invisible, U.S.A.-financed, capitalistic welfare department, the CIA, established ostensibly to cold-war-cope with the secret-agent operations of our enemies. So secret was their operation that the people of the United States and its Congressional lawmakers had no idea of the size of the unlimited funds given to the CIA, nor for what those unknown funds were expended. The CIA and Allen Dulles had a U.S.A.-signed blank check for X amount of money to do X tasks. I call the CIA, “Capitalism’s Invisible Army.”
The great U.S.A. corporations, having been saved in 1933 by being only “unilaterally socialized,” and having in the subsequent fifteen years become powerfully healthy from enormous war orders, immediately after Eisenhower’s election started escalating prices. Their logic was that the first corporation head to increase prices in a given field of production would be the first to be able to distribute that “upping” as profits to his stockholders and thereby to gain for himself greater economic management status and personal wealth.
As a long-time student of foreign investment I saw a pattern developing. Between 1938 and 1940 I was on the editorial staff of Fortune magazine as its science and technology consultant, and my researchers harvested all the statistics for Fortune’s tenth-anniversary issue, “U.S.A. and the World.” In that issue I uncovered and was able to prove several new socioeconomic facts-for the first time in the history of industrial economics: (1) the economic health of the American-or any industrial-economy was no longer disclosed (as in the past) by the total tonnage of its product output, but by the amount of electrical energy generated by that activity; tonnage had ceased to be the criterion because (2) we were doing so much more given work with so much less pounds of materials, ergs of energy, and seconds of time per given function as to occasion ever newer, lighter, and stronger metallic alloys, chemicals, and electronics. Though at that time universally used as the number-one guide to the state of economic health of any world nation, tonnage no longer represented prosperity. The amount of energy being electrically generated and consumed became the most sensitive telltale of economic health. Furthermore, I was able in that issue to study carefully all the foreign investments made in America all the way back to its colonization in the early seventeenth century.
The ramifications of my studies in foreign investments in America and elsewhere are wide. An example of my findings included discovery of the swift, post-American Revolution investment in U.S.A. ventures by the British (East India Company-advised) financial world as already mentioned.
I found a similar situation to be existent in World War II. As head mechanical engineer of the U.S.A. Board of Economic Warfare I had available to me copies of any so-called intercepts I wanted. Those were transcriptions of censor-listened-to intercontinental telephone conversations, along with letters and cables that were opened by the censor and often deciphered, and so forth. As a student of patents I asked for and received all the intercept information relating to strategic patents held by both our enemies and our own big corporations, and I found the same money was often operative on both sides in World War II.
The East India Company, whose flag I have shown to be the origin of ours, was a private enterprise chartered by the British. Quite clearly the East India Company didn’t lose the American Revolution. The British government lost the Revolution, and the East India Company swiftly moved large amounts of its capital into U.S. America.
With World War II over I began to watch very closely the foreign investments patterning and the strategic metals movements, especially of copper, but those of silver and gold as well. In 1942 America had all the monetary bullion gold in the world in the Kentucky hills. During World War II what was called “the China Bloc”-which was the Sung family and others backing Chiang Kai-shek-were able to persuade the American Congress that China had always been corrupt and was eternally corruptible; to completely avoid communism in China Congress should let them have $100 million worth of gold bullion ($2 billion at January 1980 gold pricing) to be taken out of the Kentucky hills. Personally I don’t think that gold ever went anywhere near China. I think it went right into the Swiss bank accounts of some clever thieves. But with that much gold out of the Pandora’s box of he U.S.A. Kentucky hills vaults, it provided a “gold lever” with which to progressively pry loose more and more gold to be reintroduced into the”lifeblood” of world economic accounting.
After World War II, with only the one exception of the $100 million worth of monetary gold bullion of the China Bloc, all the rest of the world’s international monetary gold bullion was residing in the Kentucky hills, U.S.A., vaults. All countries outside America had gone off the gold standard. In the course of international monetary negotiating that accompanied the U.S.A.’s post-World War I inadvertent ascendency into being the master economic state, and the U.S.A.’s post-World War II attempts to rehabilitate the leading economies around the world by rehabilitating the economies of its vanquished nations and thereby increasing international trading, the U.S.A. was persuaded to re-establish the gold standard for accounting the international balances of trade.
Gold is the super-helicopter of the open world-market-trading stratagems of the makers-of-money-for-self by the legalized manipulation of the money equity of others, all unbeknownst to the initial wealth equity-owning others. In 1934 Roosevelt’s New Deal prohibited the further use of gold by U.S.A. citizens or U.S.A. businesses.
By 1953 it became apparent that the Wall Street lawyers were moving the major American corporations out of America. Of the 100 largest corporations in America four out of five of their annual investment dollars in new machinery and buildings for 1953 went exclusively into their foreign operations. This four-fifths rate persisted for a score of years.
The Wall Street lawyers told Mr. Eisenhower that they didn’t like the overaltruistic social viewpoint of the Marshall Plan for helping underdeveloped countries. They liked foreign aid, but not exclusively for the development of underdeveloped countries. The Wall Street lawyers approved of the “foreign aid” wherefore the U.S.A. continued with annual foreign-aid commitments by Congress. The average annual foreign-aid appropriation has been $4 billion (1950 value) per year over the twenty-seven-year period from 1952 to 1979, which amounted to a $100 billion total. Each new year’s foreign-aid bill had a rider that said that if American companies were present in the country being aided, the money had to be spent through those American companies. In the foreign countries the corporations and individuals could again deal in gold.
Foreign aid paid for all the new factories and machinery of all the American corporations moving out of America. This became a fundamental pattern: first the 100 largest corporations, then the 200 largest corporations followed, then what Fortune calls the 500 largest corporations. Moving out of America could be done readily because a corporation is only a legal entity-it is not a human being. It had no physical body to pass through immigration or emigration. You and I cannot move out of America because we are physical-we need a passport. A corporation does not.
So the Wall Street lawyers simply moved their prime corporate operations elsewhere. It was clearly evident that with only 7 percent of the world’s population in the U.S.A., and with two cars already in many U.S.A. garages, by far the major portion of further exploitation of the world’s peoples’ needs and desires would develop outside of the U.S. of America. But the main objective of the Wall Street lawyers was for the corporations’ to get out from under the tax control of the American government. In 1933 the American people had saved the corporations by subsidizing them; then, twenty years later, the Wall Street lawyers moved them out of America, getting the American people to pay for the move. This allowed the corporations to acquire gold equities while the U.S.A. citizens and small domestic businesses could not do so.
Soon after Eisenhower’s 1952 election to the presidency, the lawyers reminded him once more that America clearly had won the war only through his brilliant generalship backed up by American free enterprise, and said, “We want you to stop the welfare-state-inclined American government from competing with free enterprise. You must cut out all the navy yards and the arsenals. They compete against the free-enterprise corporations, which are quite capable of doing the same work as the navy yards, but of doing it much more efficiently. You must turn all such production over to private industry, cut out the U.S.A. post office and turn that over to private enterprise, cut out the Federal Deposit Insurance Corporation and turn that over to the insurance industry.” Although much of this transfer of production from government to private enterprise control was never completed, Eisenhower goaded on by his lawyers initiated the flow of taxpayer-financed, highly trained personnel and especially their technical know-how to private enterprise. This irreversible trend continues on to the present day, as can be shown by the history of the whole of the atomic energy field.
Those acquainted with the story of the atomic bomb development remember the momentous occasion when theoretical fission was discovered in 1939 by Hahn and Stresemann in Germany and secretly communicated by them to American physicists, who checked out their calculations and found them correct and then persuaded Einstein to go to Roosevelt to tell him that this was so and that Hitler’s scientists were hot on the trail.
Franklin Roosevelt, exercising war powers given him by Congress, in effect instantly appropriated $80 billion for what became known later as the Manhattan Project. Later, that initial $80 billion appropriation was supplemented by an additional $75 billion for a total of $155 billion of the American people’s money that went into developing atomic energy.
The Wall Street lawyers’ grand strategists sent a man named Lewis Strauss to Washington to “join in the World War II effort.” Strauss was a partner in the Wall Street banking house of Kuhn, Loeb. He was also a brilliant son-in-law of Adolph Ochs, president of The New York Times. Strauss was made an admiral in gratitude for his forsaking Wall Street to help America win the war. After the war Admiral Strauss was appointed to the Atomic Energy Commission; in 1953 Eisenhower named him commission chairman. Strauss and the Wall Street lawyers persuaded Eisenhower that the Atomic Energy Commission must not be in competition with capitalism and must be turned over to private enterprise. So it was-$155 billion worth of it, all of which had been paid for by the American public-but it consisted of work so secret that only the scientists who were intimate with the work understood it.
All that was necessary to correct the situation was to give contracts to private enterprise to carry on the atomic work and to let the government’s scientists go to work for the private-enterprise corporations.
At this point the Wall Street lawyers and Strauss persuaded Eisenhower that the United States Bureau of Standards’ scientists were in competition with private enterprise and must be curbed. Strauss assured Eisenhower that the corporations would take on all the bureau’s discarded scientists. What the Wall Street lawyers’ grand strategists realized was something momentous-to wit… that in the new 99.9-percent invisible reality of alloys, chemistry, electronics, and atomics, scientific and technical know-how was everything. Physical land and buildings were of no further interest to capitalism. Metaphysical know-how was the magic wand of the second half of the twentieth-century world power structures. Physical properties were subject to deterioration, taxable, and cumbersome. Advised to do so by their lawyers, capitalism and private enterprise set about after World War II to monopolize all strategic technological know-how-i.e., all metaphysical properties-and to dump all physical properties. They called for an economic program by which people would be forced to buy the apartments and houses-to get all physical properties off capitalism’s hands.
The post-Eisenhower era becomes most suitably identified as that of lawyer capitalism and of “no-risk,” sure-thing, free enterprise.
The whole of atomic development was know-how. Scientists had the know-how, and anybody without their technical information could not even speak their language. The Know-How Club, monopolized by lawyer capitalism, was a very tight club. Furthermore, the nonmember four billion plus human beings on planet Earth knew nothing about the invisible micromacro, non-sensorially-tune-in-able reality. Large private enterprise had now hired all the know-how scientists and engineers. They seemingly could keep the public out of their affairs forever. The world power structure had the U.S. government completely emasculate the Bureau of Standards. There was an earnest and concerned battle by a few responsible scientists to keep the bureau intact, but they were overwhelmed. Henceforth all science must be done by the private corporations themselves or under their subsidized university-college and private laboratory work. To appreciate the extent of this know-how monopoly of the big corporations, one need only look over the wording of the scientist and engineering help-wanted advertisements of the big corporations in the many pages of The New York Times Sunday business section or of their counterpart publications in other big cities.
In the invisible, esoteric world of today’s science there is no way for the American government or public, without the U.S.A. Bureau of Standards’ scientists, to follow the closely held technical secrets of the big, profit-oriented corporations. To a small extent such popular journals as Scientific American help people follow details of this-and-that special case science without learning of the significance of the information in respect to comprehensive socioeconomic evolution.
No economic accounting books list metaphysical assets. Metaphysics is held to be insubstantial-meaning in Latin “nothing on which to stand.” Patents can be granted only for special cases-i.e., limited physical-practice applications of abstract generalized principles, which principles alone are inherently metaphysical and unpatentable, being only “discovered” and not “invented.” But physical patents are capital.
We have two fundamental realities in our Universe-the physical and the metaphysical. Physicists identify all physical phenomena as the exclusive manifest of energy: energy associative as matter or disassociative as electromagnetic behavior, radiation. Both of these energy states are reconvertible one into the other. Because there is no experimental evidence of energy being either created or lost, world scientist-philosophers now concede it to be in evidence that Universe is eternally regenerative.
The physicists have found that energy will always articulate levers electromagnetically, gravitationally, chemically by reactive forces, by vibratory waves, etc. Metaphysics consists only of weightless, dimensionless, abstract thoughts and mathematical principles that cannot lever physical needles in respect to instrument dials. Energy in either of its states, being physical, can be entered into the capital account ledgers.
The large issue today is the technical know-how that governs the transformations of energy between its two states. “Know-how” is metaphysics. Metaphysics now rules. When the head of one of the U.S.A.’s largest banks was asked what “commodities” were involved in that bank’s import-export dealings with the rest of the world on behalf of the Chinese government, he answered that know-how was the prime commodity being acquired by the Chinese through that bank.
I have spent a great deal of time since World War II in Japan, dealing with their industrialists, and have personally witnessed the Japanese acquisition by contracts of a whole complex of exquisitely specific packages of industrial know-how, together with the respective follow-through educational services-all acquired from, and performed by, engineering and business-administration teams of many of the leading American corporations.
The post-World War II Japanese had already perceived that they did not need to own the physical mines of metallic ores because they had learned also how to carry on exclusively with the melting down and recirculating of the world’s metals, particularly those poured into the Orient and Western Pacific islands by the U.S.A. during World War II in the form of now-obsolete-ergo, “scrapped”-armaments. The essence of Japan’s recent decades’ economic success has been the acquisition and realization of the industrial-technology-know-how wealth existent exclusively in metaphysical know-how, in contradistinction to strictly physical land properties, tools, and end products. With all their pre-World War II machinery smashed the Japanese and Germans acquired new, vastly improved industrial equipment with which to realize their know-how production, whereas the World- WarII-winning U.S.A. and European Allies using their old technology became more preoccupied with making money than in producing superior products.
Because of the foregoing it was now possible to maintain that hidden know-how capability within private corporate walls. Since 99 percent of humanity does not as yet understand science’s mathematical language, less than 1 percent of humanity is scientifically literate-ergo, the lawyers’ strategy of tight monopolization of scientific know-how within the scientifically staffed corporations was highly feasible.
In 1929, at the time of the Great Wall Street Crash, only about 1 percent of the U.S.A.’s big corporations had research departments. Now, half a century later, all the big corporations have all the powerful research departments, other than those in which pure scientists are engaged in academic work under some corporate or government subsidy. Through the national defense budget’s armaments development, all the once risky research and development costs of enterprise are paid for by the public through taxation.
The big oil companies knew long ago that humanity would ultimately run out of an adequate supply of petroleum and other fossil fuels, though coal may last a thousand years. That’s why, by the means we have reviewed, the oil companies acquired control of the know-how on atomic energy as well as all the atomic plants and equipment paid for originally by the U.S.A. government. The power structure’s only interest is in selling energy-and only energy that they can run through a meter. They’re not in the least interested in anyone getting windpower-except themselves. Very rich men love having their sailing yachts wind-driven to Europe or the South Seas, but this is not for the people. People’s power must be piped or wired to them only through meters.
When in 1972 all the power-structure capital had converted its dollars into gold, oil, or other highly concentrated and mobile equities, then-President Richard Nixon severed the U.S.A. dollar from its government-guaranteed gold equity value of $35 per ounce, the U.S.A. people’s dollar buying power plummeted-now, in 1980, being worth only 5 cents of the 1971 U.S.A. dollar.
By 1974 much of the world’s buying power landed in the lap of the Arabs, who also sat atop the chief petroleum source of the world. In effect they had both the money with which to buy their petroleum and the largest reserves to be bought. If someone wanted to buy their petroleum, often they couldn’t do so, because few in the world had the monetary resources remaining with which to do so. The Arabs realized they would have to lend out their money to work, but they had no experience in such investment matters. The Arabs had no knowledge of the vast industrial production and distribution technical and administrative requirements. Nor had they any experience in the exploitation of the world-energy industry prior to their own lands’ exploitation by others before the onslaught of the petroleum company giants. The Arabs had not known how to discover, drill for, refine, and distribute the petroleum upon which they had been sitting unwittingly for thousands of years.
So content were the Arab monarchs with the gratification of their every physical desire-artfully heaped upon them personally by the capitalist world’s foreign-oil-exploiting functionaries-that they would never have taken over the direct mastery of their petroleum affairs had not the psycho-guerilla warfare between the capitalist and communist powers deliberately aroused the Arabian peoples themselves, bringing pressure upon their leaders to take over the foreigners’ operations. Since their subsequent epochal enrichment, the Arabs’ political leaders as well as the monarchs and sheiks have bought everything of which they could dream, as stimulated by the affluent acquisitions patterns in other economies. After vast stock and bond investments, real estate and new building ventures in foreign countries, they found that they could expend only a fraction of their monetary wealth. The Arabs have now reached the dilemma of how to turn their monetary gold fortune to important and lasting advantage.
In 1977 the king of Saudi Arabia said to a leading American banker with large oil interests, “My banks don’t know anything about international banking and major industrial accommodation.” The American banker said, “Would you like me to run your banks?” The king said, “Of course.” So the American banker did, and in the process he taught them international and transnational industrial-finance management.
There’s no question that the few who have title to Arabian oil find it essential to amalgamate their operations with the world’s great oil companies, which own the vast equipment of world-around distribution and interaccounting capabilities as well as the vast majority of refineries and petrochemical industries. The great oil companies control it all. In general they and noncommunist Arabia are one and the same. The Organization of Petroleum Exporting Countries’ (OPEC) officialdom, regardless of national political differences, is very probably run entirely by the oil corporations’ trillions of dollars of persuasiveness.
It is relevant at this point to note that the Arabs’ inadvertent isolation of both the physical-wealth items-(l) the underlying monetary gold and (2) the prime negotiable energy commodity, petroleum-and their concurrent discovery of their utter lack of know-how, clearly differentiated out the relative values of (A) the purely physical petroleum and gold, and (B) the exclusively metaphysical know-how wealth. It turned out that B was most in demand as well as scarcest. The physical wealth was thus proved to be of approximately zero value, while the metaphysical know-how wealth proved to be the prime economic “good-health” constituent of wealth.
Moreover, those who own oil also own the atomic energy and have long ago assumed that, if humanity exhausts or abandons oil, it will automatically switch over to atomic energy. Humanity has had nothing to say about all this because the know-how was so obscure and the lawyers’ stratagems so invisibly large. The lawyers’ omnilegal international stratagems were and as yet are so obscure, in fact, that no government authorities-let alone the public-knew that the world energy monopoly’s scientists had not taken into account earthquakes, for instance, in the construction of New England atomic energy plants, nor had the public or government anticipated that the intuitive wisdom of humanity would develop such an antipathy to atomic energy as eventually to force lawyer capitalism to fall back on its “ownable” coal mines and shale for conversion into pipable and meterable liquid fuels. It is as yet inscrutable to the public, government, and lawyer capitalism just how strong literate humanity’s intuitive wisdom will be in preventing the full-scale conversion of coal and shale into liquid energy fuel when it learns, as it has now been learned in a scientifically undeniable way, that this selfishly exploitable energy fuel strategy will inexorably destroy the atmosphere’s capability of supporting biological life on planet Earth. Like all fossil fuels coal gives off carbon dioxide when burned, but coal gives off 25 percent more of it per unit of energy than oil and 50 percent more than natural gas. Although carbon dioxide comprises less than 1 percent of the Earth’s atmospheric gases, this concentration has risen 17 percent since preindustrial times and is expected to rise an equivalent amount in the next twenty years. The “greenhouse” effect from the Sun’s heat and increasing amounts of this otherwise harmless gas could send average global temperatures soaring by as much as 6 degrees Fahrenheit within fifty years according to a U.S. government study. This unprecedented global environmental catastrophe would be virtually irreversible for centuries.
No one knows whether the cessation of the waste radiation of atomic energy exploitation or the cessation of coal and shale conversion into fluid fuel will occur in time to permit the physical continuance of humans on planet Earth. What we do know however, as we have previously stated, is (1) that, with the unselfish use of technology, it is now possible to take care of all humanity at a higher standard of living than any have ever experienced and do so on a sustaining basis by employing only our daily energy income from Sun and gravity and (2) that we can do so in time to permit the healthy continuance of humans on planet Earth.
Now things are beginning to go wrong with atomic-power generation. . . everywhere. To start off with, neither the scientists nor the atomic plant private-enterprise owners have any safe solution for what to do with radioactive atomic wastes. Humanity’s intuitions are logically aroused, and public antipathy to atomic energy is rapidly expanding-despite billions of dollars being spent by the world energy cartel in propaganda campaigns to make the vast majority of people “go for” atomic energy.
The second great gasoline-line “pinch” of June 1979 was put upon the public by the invisible energy-know-how cartel to painfully divert the public concern generated by the Three Mile Island radiation accident and threat of a reactor “meltdown.” Though the public had reacted strongly against atomic plants, the sudden energy supply squeeze administered by the oil companies made the general public so energy hungry again that it stopped, for the moment, listening to those who were attempting to curtail atomic energy plants. The “gas crisis” re-established “rational” public yielding to governmental support of atomic energy as the “answer” to the energy crisis.
Today’s (1980) world-power-structures struggle is one between the U.S.S.R. and big capitalism, which we now call lawyer capitalism, which deliberately took the world’s private-enterprise corporations out of the fundamental jurisdiction of America. They have kept their U.S.A. operations going in a seemingly normal way, so people in U.S. America haven’t realized that these companies are officially situated elsewhere despite the incredible amplification of those great corporations’ annual profits, whose annual totals payable to these corporations’ stockholders are of the same magnitude as the annual increase in the U.S.A.’s joint internal and external debt increases.
America is utterly bankrupt externally in terms of balance of trade due to its own oil companies now operating as Arabian business. The national debt at the time of the New Deal was $33 billion-which was the cost of World War I. Before World War I we frequently had no national debt whatever. We have today -a national debt that exceeds $800 billion-30 percent of that indebtedness came from underwriting of ever-longer-term mortgages. In 1934 the U.S.A. underwrote a completely obsolete building industry while Eisenhower allowed the banking world to, make an incredible amount of money in interest rates and services(In 1978 over $1 billion just for transferring home-ownership deeds). in support of the building and real estate game, which building industry-if it were any good-would pay the U.S.A. back handsomely. The U.S.A. cannot even pay the annual interest on its $800 billion national debt. That is why the Nixon presidency and all those since have had to enter each year with a negative budget, acknowledging that at year’s end the U.S.A. will be a $100 billion-magnitude unrecoverably deeper in debt. Our foreign-trade-balance indebtedness is (as of September 1979) $104 billion ($86 billion if foreign branches of U.S. banks are taken into account). Sum-totally, what has been taken from the people of the U.S.A. runs into many trillions of dollars. In the quarter of a century since Eisenhower America has become completely bankrupt, with its world leadership, its financial credit, and its reputation for courage, vision, and human leadership gone.
None of this was the American people’s doing. It was all done in an absolutely legal but utterly invisible manner by the lawyer-capitalism. Individual bankers, industrial-corporation officers, et al. have had to do what their lawyers told them to do. No bad people have been involved. The lawyers were following their survival instinct-and doing so completely legally.
Everything we have reported here has been published at one time or another, but with the individual items often so far apart from the last relevant item that the public has tended not to remember and associate the items. As a consequence the total picture presented here is approximately unknown to any but the Wall Street lawyers’ grand strategists, most of whom are no longer alive.
One of my earliest books was Nine Chains to the Moon, written in 1935 and published by Lippincott in July 1938, and now being published by Doubleday. In it I referred so frequently to Finance Capitalism that I developed a contraction of those two words into FINCAP. FINCAP had died a lingering death between 1929 and 1934. In this book, Critical Path, I refer so often to the lawyer-resurrected “capitalism” that it is appropriate to refer henceforth to LAWCAP. LAWCAP’s “capitalism” is paradoxically the most highly socialized organization in all history-the citizens of LAWCAP’s welfare-state-the whole body of corporate stockholders-having an annual average dole of $100,000 per capita without their even having to make a pretense of getting a job.
If we take the billions of dollars given in the 1930s to the great U.S.A. defense-industries corporations by the New Deal’s Reconstruction Finance Corporation. . . if we take the hidden tax-deduction subsidies to do research, development, and advertising given to all these companies in pre-1942 dollars between 1933 and 1980. . . if we take the $100 billion in foreign aid that paid for the overseas establishment of the great corporations . . . if we take the $155 billion of atomic know-how and development taken over by the oil companies. . . and if we take the number of fine ounces of gold bullion taken out of America exclusively by the capitalist world’s banking system . . . and if we take a reasonably low estimate of the unknown billions of dollars taken out of the U.S.A. by the CIA to operate exclusively on behalf of international capitalism without the knowledge or authority of the people of the U.S. of America’s quasi-democracy. . . and if we multiply the sum of the foregoing figures by twenty-five, which is the amount to which our present U.S.A. dollars have been depreciated between the time of the appropriations and January I, 1980, we come to a figure in the magnitude of $6 trillion that has been legally transferred from the U.S.A. people’s national capital account over to the capital ownership account of the stockholders of the 1000 largest, transnational, exclusively American-flag-flying corporations.
The transnationally operating LAWCAP in the early ’50s resurrected the twenty-year-dead FIN CAP and its “capitalist” world and left only its American-flag-flying storefronts in the U.S.A. to cover its comprehensive financial withdrawal from the U.S.A. LAWCAP silently and invisibly moved capitalism’s big-time operations into the any-Iegally-propitious-elsewhere. With its invisibly operating CIA (Capitalism’s Invisible Army) LAWCAP exploited the unwitting citizens of the U.S.A. in order-they hoped-to destroy socialism.
The 1947-50 LAWCAP decision to start a World War III had two objectives: (1) to keep capitalism in business, and (2) to prevent the Russians from employing their industrial productivity to produce a higher standard of living for their own people than that demonstrated in the U.S.A. LAWCAP’s decision to start World War III inaugurated history’s greatest game of poker, with the U.S.S.R. as a very reluctant player, worried about its “home-folks’ ” political agitation for a few “goodies.” It became a poker game that called for each side adding approximately $100 billion per year into the “killingry kitty.” They have now done so for thirty years. This amounts to $6 trillion. By complete coincidence $6 trillion happens to be approximately the same magnitude as that of the total mileage per year traveled by light operating at 186,000 miles each second of the year.
Throughout those thirty years, the U.S.A.-half of this $6 trillion (that is, $3 trillion) was redeposited at various turnover rates per year in the Western-world banks, and the latter continually reloaned those dollars, at historically unprecedentedly high rates, to armaments industry. The net of it all was to convert science and technology’s highest capability into accomplishing the killing of ever more people at ever greater distances in evershorter time.
LAWCAP’s comprehensive grand strategy had its Achilles’ heel.
Having successfully lifted $6 trillion from the mid-twentieth-century world’s leading nation-the U.S.A. and its people-LAWCAP puppeted the U.S.A.’s people into expending another of their own $6 trillion in playing “the drop-dead killingry poker game” with the U.S.S.R. exclusively on behalf of invisible LAWCAP. The latter was sure that with its complete control of all the world’s money to back the U.S.A., the latter could not lose the killingry poker game with the U.S.S.R. Counting on winning the poker game, LAWCAP started planning its own post-World War III future.
LAWCAP once more deceived its so-easy-to-deceive U.S.A. puppet with the kibitzing of the U.S.A.’s playing of its killingry poker hand. LAWCAP did so through its enormous media control and its election-funding and lobbying power of the American political game. LAW CAP had its political leaders convince the U.S.A. people that they were playing the poker game so satisfactorily that the U.S.A. assumed that it was far ahead in atomic bombs, which gave it complete national security and assumedly maintained its world-around power and prestige.
LAWCAP was confident that with ownership of all money and control of all the Western world’s arms-producing facilities, they could outlast the U.S.S.R.’s ability to cope with its internal pressure for shifting its productivity toward its people’s life-style-as surreptitiously agitated for by the CIA’s psycho-guerilla operations.
Because it was a “poker game” the Russians, realizing that intercontinentally delivered warheads with a twenty-minute lag between rocket blastoff and landing bang-off inadvertently provided a twenty-minute radar lead, that meant for the first time in the history of war that both sides would be able to see the other side shooting at them twenty minutes before the bullets would reach them, which gave both sides twenty minutes within which to get away all of both sides’ atomic bombs, gases, germs, and death rays before the Big Bang, thus producing the first war in history in which both sides and all their allies would lose. To be a survivor of such a war would be worse than being killed by it. Planet Earth would be humanly untenable.
Because the Russians knew all this was so, and the American people did not seem to know it was so, the Russians assumed after the Khrushchev-Eisenhower Geneva Meeting of 1955 that atomic bomb warfare would never occur-that is the way the U.S.S.R. played their poker hand. They assumed only enough atomic bomb-making to camouflage their strategy, while they counted on conventional arms, vast divisions of armed and trained men, and the greatest ever of world history’s line-of-world-supply-controlling navies. The latter featured all of their now-perfected Vertol planes, being above-thesea-surface-emitted, vertically ascending into the sky from enormous-bellied atomic submarines, moving far more swiftly submerged-seventy knots-
than could the surface-battling, forty- to fifty-knot aircraft carriers. This the U.S.S.R. assessed to be the world-winning strategy.
The reason that LAWCAP’s strategy kibitzed its U.S.A. players into holding four atomic bomb “aces” and an aircraft carrier “king” was because LAWCAP wanted to be sure that the atomic energy technology was so advanced and proliferated by World War III’s end that they could employ its U.S.A.-peoples-paid-for basic equipment and widely developed uranium mines and production sources and its scientific personnel to produce the energy to run through their money-making meters after their fossil fuels were exhausted.
LAWCAP’s cupidity outwitted its wisdom. LAWCAP’s sense of evolutionary-event acceleration was faulty. They bluffed only the people of the U.S.A.-not the Russians.
The Russians have now attained so commanding a lead in the killingry poker game that even the U.S.A. president concedes that it would take the U.S.A. a minimum of ten years to restrategy itself so that it could in any way cope with the Russians’ “conventional” naval supremacy and its vastly greater numbers of modernly armed divisions of world-around warfaring capabilities.
In the meantime as already mentioned the United States has gone completely bankrupt internally, its national indebtedness coming very close to a trillion dollars and its balance of trade debt to $109 billion-worsening at a horrendous rate due to LAWCAP’s arranging to force the U.S.A. to obtain almost half its petroleum energy from the Near East. The U.S.A. has for eight years past been unable to meet even the interest on its internal debt as demonstrated by a negative balance of trade. Its future credit has been hypothecated thirty years beyond Armageddon. Nothing to stop the U.S. Treasury from issuing 2050 notes, but for how far into the future can LAWCAP keep selling U.S.A. promissory notes?
Unless God has something else in mind, it looks as though it will not be long before LAWCAP’s kibitzing of the U.S.A. will have lost the $6-trillion killingry poker game. Russia will not hesitate to “call” the U.S.A. hand and rake in the winnings of omniworld, line-of-supply control-maritime, aeronautical, and astronautical.
In one way the U.S.A. and U.S.S.R. citizens are in much the same socioeconomic position. The Communist party which runs the U.S.S.R. consists of about 1 percent of their total population, while the U.S.A. is controlled by about the same 1 percent, who are the LAWCAP strategists of the great U.S.A. corporations.
The U.S.A. is not run by its would-be “democratic” government. All the latter can do is try to adjust to the initiatives already taken by LAWCAP’s great corporations. Nothing could be more pathetic than the role that has to be played by the President of the United States, whose power is approximately zero. Nevertheless, the news media and most over-thirty-years-ofage U.S.A. citizens carry on as if the president had supreme power. All that he and the Congress can do is adjust to what the “free-enterprise system” has already done. They are riding on the snapping end of the power-structure dragon’s tail.
If I had not been studying and working for a half-century on the assumption that this present state of affairs would come about at about this moment in history, I would have to be very pessimistic now about the human affairs of the 7 percent of the world’s population situated within the national boundaries of the U.S.A. let alone critically threatened omnihumanity.
But, in fact, I have been studying and working anticipatorily throughout all those intervening fifty-three years, and I know what I am talking about. The world now has an option to become comprehensively and sustainingly successful-for all-and that is what this book is about: How to do so . . . and do so expeditiously enough to succeed within the time limit. “How to do so” is implicit in the chapters that follow starting with the manner in which I came to discover the critical options and the individual selfdisciplines that came naturally to disclose the grand strategy of human survival and successful functioning.
Self-Disciplines of Buckminster Fuller
There are no solids. There are no things. There are only interfering and noninterfering patterns operative in pure principle, and principles are eternal. Principles never contradict principles. Principles can interaccommodate one another only in noninterfering frequency ways. Principles can interaugment one another if frequency is synchronizable.
Acknowledging the mathematically elegant intellectual integrity of eternally regenerative Universe is one way of identifying God.
Everything the brain deals with relates to high-frequency thingness. Mind, and mind alone, deals with understanding the interrelationships existing only between and not in anyone principle, considered only by itself. Principles themselves are often subsets of interrelationships existing only between specific principles.
God may also be identified as the synergy of the interbehavioral relationships of all the principles unpredicted by the behaviors or characteristics of any of the principles considered only separately.
The synergetic integral of the totality of all principles is God, whose sumtotal behavior in pure principle is beyond our comprehension and is utterly mysterious to us, because as humans-in pure principle-we do not and never will know all the principles.
Apparently the integrity of the synergy of all synergies of all principles is continually testing its own comprehensive adequacy to accommodate all challenges in pure principle to the maintenance in pure principle of the principle of nonsimultaneous, only-overlappingly-atfected, complex unity’s eternal regeneration.
Realization that the foregoing may be true tends to inform humans that the introduction into Universe of humans, in pure principle, with minds operating in pure principle, capable of apprehending and objectively employing in pure principle some of the eternal principles, was courageously undertaken by God to discover whether the principle of the eternally regenerative integrity of Universe can endure inviolate despite the dichotomy of knowledge brought about by introduction into the cosmic system of humans and their minds with access to and employment of some-but not all-of the eternal principles. This was an experiment in pure principle to test the adequacy of the synergy of synergies of principle to cope with the sometimes perverse, egotistical, selfish, and deceitful initiatives inherent in the concept of humans in pure principle without access to the wisdom accruing synergetically only to knowledge of all the principles-ergo, possibly capable of impairing the integrity of eternal regeneration. That may be what the integrity of God needs to know and needs to know by experimental evidence.
We have also noted how the power structures successively dominant over human affairs had for aeons successfully imposed a “specialisation” upon the intellectually bright and physically talented members of society as a reliable means of keeping them academically and professionally divided – ergo, “conquered,” powerless. The separate individuals’ special, expert glimpses of the separate, invisible reality increments became so infinitesimally fractioned and narrow that they gave no hint of the significant part their work played in the omni-integrating evolutionary front of total knowledge and its power-structure exploitability in contradistinction to its omni-humanity-advantaging potentials. Thus the few became uselessly overadvantaged instead of many becoming regeneratively ever more universally advantaged.
Critical Path: Part Two
All those who have attained high scholarly capability assure us that the only real education is self-education. They also say that this self-disciplining is most often inspired by great teachers who make it seem apparent that it will be excitingly worthwhile to take the trouble to bring oneself to apprehend and then comprehend variously pertinent data, phenomena, and derived principles. The intimate manuscript records of all the great selfeducated individuals show that they discern intuitively when and what it is that they want to learn. Thereafter they arrange to do so by four main strategies. The first is by self-conducted experiments, if they are scientists. The second is by going to those live humans who have educated themselves from direct experiences. The third is to contact through books those who have discovered and learned but are now dead. Fourth, they sometimes have recourse to the esoteric and often exquisitely valuable information contained within the word-of-mouth information system relayed almost exclusively from generation to generation by the craftsmen-artists.
Critical Path: Part Three
Copper is the most plentiful of the most efficient electric-power-production and -conduction metals. World War I was a power-production war. And copper is the most plentiful of nonsparking metals and is therefore logically employed in connection with gunpowder-handling equipment such as the shells inserted into the gun breeches. Because of these facts, the demand for copper in 1917 was epochally great.
Not long before World War I and its huge demand for copper, copper-ore-to-pure-metal reduction by the vastly less expensive flotation process and the also much less expensive electrolytic refining brought the cost of mining and refining copper so low that the cash value of the average amounts of recoverable gold and silver co-occurring with the copper-which gold and silver are automatically purchased by the U.S. government mint–exactly paid for all the mining and refining of the copper itself. The whole price paid for copper was profit. The mineowners then decided to mine only when the prices bid for copper were at a peak. The prices bid always peaked in wartime. With World War lover the world copper cartel waited and worked for the start of World War II.
In the 1930s the big copper companies were badly bothered by the influx of copper scrap into the marketplace. Up to the time when I came to study the copper situation, the rates of evolutionary change were so slow that the mineowners had no idea that the copper they sold would ever come back on the market to disturb their price.
By 1936 the copper price controls were completely challenged by the scrap influx. Phelps Dodge asked me to do some research on the problem, so I reviewed all the known, published data of the metals world. In the metals world very accurate records are kept about how metals have been and are now being used. Very profitable publications are maintained by the affluent metals businesses. Very accurate inventories exist detailing, for instance, how much of any given metal is built into an automobile. In 1936 there was only about thirty pounds of copper in each American automobile. Copper is expensive, and the auto manufacturers try to keep the use of expensive metals to a minimum. However, considerable copper is used in a gas station-for instance, in all the gas-tank-filling nozzle equipment-because it is nonsparking. You couldn’t possibly use a sparking metal such as steel around gasoline.
I was able to arrive at that previously undiscovered twenty-two-and-one half-year recycling figure by very carefully integrating the total inventory of the in-use tonnages of metals in all the main categories of their use-for instance, the inventoried copper in all extant buildings, in old roofings, gutterings, and flashings, brass pipes, and so forth. The total inventory of copper in old buildings, both business and residential, is an inventory that becomes obsolete and is scrapped and recirculated on an overall average of once every fifty years. Within the building category copper comes out faster from big city buildings than from single-family country residences.
What makes obsolete any of the major categories of metals in use is the rate at which the new technologies occur that make obsolete the older technologies. In the electronics industry there exists only a two-year lag between the discovery or invention of new functions and improved techniques and their acceptance and employment by the electronics industry. This short lag is occasioned by the fact that the physical phenomena involved operate at subvisible-to-human-sight levels. This means that the behaviors are considered only on a basis of figures. If this one works better than the others to a sufficient, numerically expressible degree without lowering contiguous behavioral efficiencies, it can be reliably calculated that adoption of the newer facility will produce universal advantage. No human opinions on the merits or demerits of the discoveries and their invented technical realizations are involved.
In the aeronautical arts-airframe, power plant, instrumentation, airport facilities, and ground-controlled flight-pattern technologies-there is a five-year gestation period between invention and industry’s adoption for use. The discoveries and technical inventions in the aeronautical arts are both visible and invisible. When invisible, the decisions to adopt are made scientifically through instrumentally derived numbers-where visible, the decisions are made on past experience and opinionated comparisons. Where there is room for opinion and personal prejudice, the decisions to reject or to adopt take longer. The more science and the less opinion is involved, the quicker the new technology is adopted. It is the rate at which new inventions are adopted that spells the rate of obsolescence of the technologies they are to replace.
By taking the invention-gestation rates in the different industries, which we’ve discussed elsewhere in this book (two years in electronics between invention and use, five years in aviation between invention and use, ten years in automobile manufacturing, fifteen in railroad, twenty-five years in big buildings, and fifty years in single-family dwellings), we integrate the amount of copper in each use-category and their respective number of years of use, and thus find the average rate at which copper (and all the metals) come back as scrap to be every twenty-two and one-half years.
The unprecedentedly great World War I copper production occurred primarily in America. In one year, 1917, humanity took ~ore copper out of the ground, refined it, and put it to work than had been cumulatively produced in all the world throughout all previously recorded history’s years.
This produced in 1917 a vertical cliff on the “all-history charts of world copper production.” Adding twenty-two and one-half years to 1917 would bring the date of reappearance of the crest of that 1917 world-record production scrap to July 1939. So I told Phelps Dodge in 1936 that three years later, in July 1939, they were going to be overwhelmed by scrap. Meanwhile, I became the science and technology consultant on the editorial staff of Fortune magazine in 1938. In July 1939 the head of research for Phelps Dodge called me up on the telephone and said, “Bucky, your twenty-two and-one-half-year scrap-return prediction is absolutely right. Go down to the New York docks and observe.” I did so. Alongside all the great cargo ships were cargo barges filled with scrap metals, piled enormously high.
Class-one evolution makes it clear that all 150 of the world’s sovereignties must go. There was a time when the United States was incredibly powerful-right after World War II. Today most of the people in America still think of their nation as being the most powerful of world nations-ergo, free to make its own most constructive moves. Quite the opposite is now true; as we’ve shown in the “Legally Piggily” chapter, the United States is both internally and externally bankrupt-it is also overpowered by Russia’s navy and conventional arms.
The Senate Foreign Relations Committee asked me to speak to them five years ago, as documented in the Congressional Record of May 22, 1975. They asked me where our country and its people were going, and I said, “Not only have all the big corporations become transnational and taken all the former U.S.A. gold and other negotiable assets with them, but they have also left all the world’s people locked into their 150 national pens, with those 150 nations blocking the flow of lifeblood metals without which we cannot realize the increasing know-how of all humanity. Very soon the nation-state sovereignties will have to be eliminated,” or humanity will perish.
A nation’s dictator need not consult with his people at all. A dictator can make a deal with another dictator to give up their respective sovereignties. A dictatorial party, such as the Russian Communist party, which is composed of only I percent of the Russian people, can make a deal with other dictators or dictatorial parties to give up their respective sovereignties. In a quasi-democracy such as America the president or prime minister’s first oath of office is to protect the nation’s sovereignty against all foreign incursion.
If any president of the United States or prime minister of any other quasi democracy even so much as discussed possibilities of desovereignizing, he or she would be immediately impeached. In discarding its sovereignty the United States of America faces the most difficult of all situations. Therefore class-one evolution is about to put the U.S.A. out of business through international bankruptcy. This will be a powerful example of class-one evolution at work. The bankruptcy need not be the end. It is simply nature’s way of ridding the planet of the most powerful of yesterday’s sovereignties and thereby setting off a chain of 149 additional desovereignizations, altogether removing the most stubborn barrier to the free circulation of the Earth’s world-around metals, foods, and income energy supplies and people.