“The keys can unlock every treasure chest of supply and provision.”

WAR-BOOM-BUST ECONOMY

First Published Summer 1970

Background

This Letter, written while the Vietnam war was in full swing, exposes the powers behind the scenes which drive economic and political interests. It's one of the first in a series of exposés of the commercial and political systems of that time. The general principles are true of not only the USA but throughout the world economy.

At the end of the Letter we're including a recent article, "Economic Hit Men".

"War" calls for an increase of factory output (weapons, etc.). Factory increase means more workers being hired and paid. This means more people have more money to buy products of all other industries. This increase in jobs and spending is a "boom," but this increase in money leads to inflation. Inflation is when the value of the dollar drops (or the amount of things it can buy drops). It is the old law of "supply and demand." When something is scarce, people value it more; when something is plentiful, its value drops.


The boom is good for the poor man and workers except pensioners and those with fixed incomes, because even though the money is not as valuable, at least he has something. The boom is when we have a time of plenty of money, and everyone has got some (even though its value is less)--because everyone is involved in jobs to produce weapons of war, and other jobs to provide "idols" (consumer products) that this increased working force will buy.

Now the businessman, of course, is making profits from all this buying and selling. He makes billions of paper dollars, but these paper dollars have lost some of their value because of the great circulation of them. They are so plentiful that people value them less, spend more and are willing to pay higher prices, so the dollars buy less. The loss in value comes from the fact that the sellers of commodities can ask higher prices for their things because they know that with all this money around, some sucker is going to buy their wares. this is inflation: more money for less product. It is a seller's market!

The opposite, deflation, is when the money is in only a few hands. This is when the sellers have to compete for the favor of the few buyers by dropping their prices to lure him to their place. This is a buyer's market. The money is actually more valuable in such a case because less of it buys the same.

The merchant with his billions of paper dollars from the "boom" knows that each one of those dollars would be worth more if less people had money to spend. So he lowers the circulation of paper dollars by calling up the King, who in turns calls up the Captain of War and tells him to stop fighting. The Captain of War has no more use for rockets, planes, bombs, tanks, jeep, army clothes, boats, bullets, 3.2 beer* and all the multitude of things necessary to fight a war. [* Beer commonly drunk by soldiers in the Vietnam war.]

The merchant stops his assembly lines and the slaves are sent home and the paychecks stop. The other industries that don't make war equipment soon stop making idols because the slaves of the war industries have no paychecks to buy their idols with. This starts a chain reaction that even goes as far as the manufacturers of necessities (food, clothes, houses, etc.) who have to stop producing necessities because now the slaves of both war and idol factories have no paychecks!

So everyone is broke and starving, but the merchant is happy because the value of each one of his paper dollars is increasing because they become so scarce and buy more at lower prices. People will give up their houses and cars just to get their hands on a little money. The money is now worth a lot more because of its scarcity. this is a "bust," recession, or depression. This eventually ends with most of the people selling their possessions for a little money and the Big Merchant ends up with everything (Gen.47:20). Of course, there is always the chance of a slaves' revolt at this point (Revolution).

So the merchant takes a few straws off the camel's back by having the King open up some soup lines, and even a WPA scene (government work projects)*. Sometimes it is cheaper to keep the slaves in line by giving them a few crumbs, than it is to contain them with firepower (police, guards, etc.). A few soup lines are cheaper to maintain than an armed occupation force. [*Works Projects Administration, abbreviated WPA, was a federal relief program in the USA created during the Great Depression, in 1935.]

But the quickest way out of a severe depression is, of course, to start another war. This completes the cycle by opening the war factories which puts enough money (paychecks) on the streets for the idol factories and manufacturers of necessities to start producing and selling again. This is the method by which the poor members of the Beast must support the Whore! (Rev.17:7 and 18:23-24)! "Come out of her!" (Rev.18:4)!

But the Vietnam War is manifesting a peculiar phenomenon. The threat of revolution is so impending and well advanced that the powers that be (Business, Politics, Armed Forces) are aware that a recession would set it off. They know that a few soup lines, and lying promises won't be enough to hold back a revolution in the event of a recession (which would be inevitable if the war ceased). They are also aware that their present policy of feeding the youth of the nation into the war machine is also fuel for agitating the revolutionary element: so, either way--trouble!

But the warmongers are pulling a fast one this time. They are trying to pull a compromise by replacing the American soldiers with South Vietnamese, and keeping the war running to maintain the sick economy. So Big Business continues to produce war toys, well-lubricated with the blood of human sacrifices, as usual. But, the sacrifices are now coming from another nation to take the heat off back here. It looks like the Vietnamese flower children have been elected to be the cannon fodder that handles the diabolical war toys of the death cult's genocidal "economy." It looks like the death triangle has weaseled its way out of an impossible situation. But they made a mistake: they forgot god! "Be not deceived, God is not mocked" God knew about the child sacrifice game a long time ago (Ezek.16:20-21, 23:39).

The atrocious effects of the death triangle (war, business, politics) cannot be stopped by ordinary revolutionary activity. The power of the death triangle is of spiritual origin (Rev.6:3-8; 16:13; 18:3,24), and it must be fought on the spiritual level (2Cor.10:4). The physical system is only a symptom of the real sickness, which is the spiritual underworld that rules the physical world (Eph.6:12). If you really wish to be among those who conquer and destroy these evils once and for all, join us as we employ the most powerful weapon in the Universe (Heb.4:12) to "destroy the works of the Devil" (1John 3:8) and "war a good warfare" (1Tim.1:18) "For the time is at hand!" (Rev.1:3)

EXTRA READING

Confessions of an Economic Hit Man

By Amy Goodman, Democracy Now

(Published in END 72, March 2005)

[Extracts]

We speak with John Perkins, a respected member of the international banking community. In his book Confessions of an Economic Hit Man he describes how, as a highly paid professional, he helped the U.S. cheat poor countries around the globe out of trillions of dollars by lending them more money than they could possibly repay and then taking over their economies.

Amy Goodman: Explain this term, "economic hit man."

John Perkins: Basically what we were trained to do and what our job is, is to build up the American empire--to create situations where as many resources as possible flow into this country, to our corporations, and our government, and in fact we've been very successful. It's been done over the last 50 years since World War II with very little military might. It's only in rare instances like Iraq where the military comes in as a last resort. This empire, unlike any other in the history of the world, has been built primarily through economic manipulation, through cheating, through fraud, through seducing people into our way of life, through the economic hit men. I was very much a part of that.

I was initially recruited while I was in business school back in the late sixties by the National Security Agency, the nation's largest and least understood spy organization; but ultimately I worked for private corporations.

The first real economic hit man was back in the early 1950s, Kermit Roosevelt, the grandson of Teddy, who overthrew the Mossadegh government of Iran, a democratically elected government, and replaced it with the Shah of Iran. At that point, we understood that this idea of the economic hit man was an extremely good one. We didn't have to worry about the threat of war with Russia when we did it this way. The problem with that was that Roosevelt was a C.I.A. agent, a government employee. Had he been caught, it would have been very embarrassing. So, at that point, the decision was made to use organizations like the C.I.A. and the N.S.A. to recruit potential economic hit men like me and then send us to work for private consulting companies, engineering firms, construction companies, so that if we were caught, there would be no connection with the government.

The company I worked for was Charles T. Main in Boston, Massachusetts. We had about 2,000 employees, and I became its chief economist. But my real job was deal-making. It was giving loans to other countries, huge loans, much bigger than they could possibly repay. One of the conditions of the loan--let's say a $1 billion loan to a country like Indonesia or Ecuador--was that this country would then have to give ninety percent of that loan back to a U.S. company or companies to build the infrastructure. Those companies would then go in and build an electrical system or ports or highways, and these would basically serve just a few of the very wealthiest families in those countries. The poor people in those countries would be stuck ultimately with this amazing debt that they couldn't possibly repay. A country today like Ecuador owes over fifty percent of its national budget just to pay down its debt. And it really can't do it.

So, we literally have them over a barrel. So, when we want more oil, we go to Ecuador and say, "Look, you're not able to repay your debts, therefore give our oil companies your Amazon rain forest, which is filled with oil." And today we're going in and destroying Amazonian rain forests, forcing Ecuador to give them to us because they've accumulated all this debt. So we make this big loan, most of it comes back to the United States, the country is left with the debt plus lots of interest, and they basically become our servants, our slaves. It's been extremely successful.

Amy Goodman: In your book, you talk about how you helped to implement a secret scheme that funneled billions of dollars of Saudi Arabian petrodollars back into the U.S. economy, and that further cemented the intimate relationship between the House of Saud and successive U.S. administrations. Explain.

John Perkins: In the early seventies OPEC exercised the power it had and cut back on oil supplies. We had cars lined up at gas stations. The country was afraid that it was facing another 1929-type of crash-depression; and this was unacceptable. So the Treasury Department hired me and a few other economic hit men. We went to Saudi Arabia and we worked out this deal whereby the House of Saud agreed to send most of their petrodollars back to the United States and invest them in U.S. government securities. The Treasury Department would use the interest from these securities to hire U.S. companies to build Saudi Arabia--new cities, new infrastructure--which we've done. The House of Saud would agree to maintain the price of oil within acceptable limits to us, which they've done all of these years, and we would agree to keep the House of Saud in power as long as they did this, which we've done, which is one of the reasons we went to war with Iraq in the first place.

In Iraq we tried to implement the same policy that was so successful in Saudi Arabia, but Saddam Hussein didn't buy it. When the economic hit men fail in this scenario, the next step is what we call the jackals. Jackals are C.I.A.-sanctioned people that come in and try to foment a coup or revolution. If that doesn't work, they perform assassinations, or try to. In the case of Iraq, they weren't able to get through to Saddam Hussein. So the third line of defense, if the economic hit men and the jackals fail, is our young men and women, who are sent in to kill and die, which is what we've obviously done in Iraq.

Amy Goodman: How closely did you work with the World Bank?

John Perkins: Very, very closely. The World Bank provides most of the money that's used by economic hit men, it and the I.M.F. But when 9/11 struck, I had a change of heart. I knew the story had to be told because what happened on 9/11 is a direct result of what the economic hit men are doing. The only way that we're going to feel secure in this country again is if we use these systems we've put in place to create positive change around the world. I really believe we can do that. I believe the World Bank and other institutions can be turned around and do what they were originally intended to do, which is help reconstruct devastated parts of the world. There are twenty-four thousand people starving to death every day. We can change that.

"We have a bloated, corrupt and unaccountable military industrial congressional system that thrives on a policy of perpetual war for perpetual peace."--David Theroux, president of The Independent Institute, a nonpartisan think tank.

"War is a racket. It always has been. It is possibly the oldest, easily the most profitable, surely the most vicious. It is the only one international in its scope. It is the only one in which the profits are reckoned in dollars and the losses in lives. A racket is best described, I believe, as something that is not what it seems to the majority of the people. Only a small 'inside' group knows what it is about. It is conducted for the benefit of the very few, at the expense of the very many. Out of war a few people make huge fortunes."--Marine Major General Smedley Darlington Butler, one of only two Marines in history to have received two Medals of Honor, writing in 1933.

David Berg

Edited by Almondtree Productions