The 1972 US Coup Against Australia

Hot Money and the Politics of Debt

RT Naylor

McGill-Queens University Press (2004)

Book Review

Hot Money is about the trillions of dollars of global financial activity that is never recorded in official economic statistics. Corporate money laundering of illegal narcotics profits is the form of “hot money” that gets the most publicity. However according to Naylor, it accounts for a relatively small proportion of “hot money” percolating through offshore banks and dummy corporations.

Most “hot money” starts out as funds generated via “legitimate” business which rich elites sebd offshore to avoid taxes or in anticipation of economic calamity or regime change. All the world’s most ruthless dictators stashed funds in Swiss banks or similar financial havens prior to being deposed.

A sizeable chunk of hot money is generated from other illegal enterprises, such as gun running, illegal arms deals, prostitution, phony charities and religious groups (eg Reverend Moon’s Unification Church and L Ron Hubbard’s Church of Scientology) and government agencies (eg CIA) who use “hot money” to finance coups and insurgencies.

For me, the high point of Hot Money  is the excellent history Naylor provides of the CIA role in the world heroin and cocaine trade, especially their move to make Afghanistan the major global supplier of heroin.

Nalylor also provides a detailed history about the role of the Vatican Bank as a “hot money” center, the rise and fall of Propaganda Due (P2), a secret collaboration between the CIA, Mafia and right wing Masonic lodges that infiltrated all aspects of Italian public life in the 1970s; the role of Nazi war criminals Klaus Barbie and Josef Mengele in setting up Latin American death squads and cocaine networks; the rise and fall of the two biggest CIA banks, Australia’s Nugan Hand Bank and the Bank of Commerce and Credit International;  and the importance of “hot money” in the Iran Contra scandal, in which the Reagan administration illegally sold weapons to Iran to finance the Contra war against Nicaragua.

The most shocking chapter describes the role of the Nugan Hand Bank in funding a bloodless coup US Naval Intelligence carried out against Australia in 1972 – to remove a prime minister whose political views were inconsistent with US interests. Most Americans are totally unaware of this heinous attack against a close US ally. I’ve only learned of it since moving to New Zealand (Australia is New Zealand’s closest neighbor).

A 241 Year Fairy Tale About American Democracy

war is a lie

 

War is a Lie

By David Swanson

Just World Books (2016)

Book Review

In War is a Lie, author David Swanson presents extensive historical evidence that the US has never been a democratic republic – that this is a carefully crafted fairy tale the ruling elite has been telling us since the late 18th century. He also demolishes the myth that warfare is deeply ingrained in human nature. Ninety-eight percent of people are deeply opposed to killing and warfare and require extensive brainwashing to commit to either. Although the species homo sapiens is 60,000 – 1000,000 years old, they have only engaged in war for the last 10,000 years. Many human civilizations (including the people of the Arctic, Northeast Mexico, Australia and Nevada’s Great Basin) had no experience of war prior to contact with Europeans. Among the more astonishing facts Swanson reveals is that 80% of the US troops drafted into World War II declined to kill enemy troops.

Starting with the Revolutionary War, War is a Lie is full of delightful little factoids that are omitted from high school and college US history courses.

Among the high points:

Revolutionary War

The two real goals of the US War of Independence were to 1) remove the King’s representatives from positions of power in North America and replace them with colonial merchants and bankers and 2) to overturn the British ban on western expansion (via the slaughter of indigenous tribes). The Continental Army consisted mainly of poor farmers who were forcibly conscripted, brutally mistreated and rarely paid (even though General Washington was the richest man in the colonies. During and after the war, numerous “democratic reforms” were enacted to motivate these the “recruits, with all being promptly nullified.

War of 1812

Contrary to what we’re taught in school, the US started the War of 1812, with the intention of invading and occupying Canada. They lost this war.

Mexican-American War (1846-48)

Another war about western expansion that resulted in the US annexation of Texas, California, Utah, New Mexico, Arizona, Nevada and parts of Colorado and Oregon. Many Irish and other European immigrants fought for Mexico.

Civil War

Swanson maintains the Civil War was also about western expansion and whether the North or South would control the new western territories. Swanson stresses that Lincoln could have easily freed the slaves without launching a war (other countries did so). The Emancipation Proclamation was issued well after the war started, as public sentiment turned against the war due to high casualties. Swanson reminds us that the Proclamation only applied to states that had seceded – slavery remained legal in Union states.

World War II

Swanson details the deliberate Wall Street strategy of arming Hitler to neutralize the Soviets, highlighting orders US pilots received not to bomb German munitions factories owned by Americans. He also writes at length about the Nazi eugenics experiments that originating in the US under the guidance of Rockefeller, Carnegie and Harrison. I was intrigued to learne the Rockefeller Foundation funded Josef Mengele’s experiments on Jewish prisoners. Swanson attributes Roosevelt’s eagerness to enter World War II to increasing working class militancy in the US (which the compulsory draft ended) and fears of full blown insurrection. He also discusses numerous efforts Hitler made (as late as 1940) to negotiate a peace settlement with the allies – which they rebuffed.