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FTR #676 Sedition! (Part 2): Target, America!

MP3: Side 1 [1] | Side 2 [2]

For several years, For The Record has presented information about efforts to break up larger countries by empowering the independence/secessionist aspirations of various regional and ethnic groups within those states. Included in this analysis are the efforts on the part of various groups to secede from, and break up, the United States of America.

The bulk of the first side of the program consists of a stunning op-ed piece [3] in the Wall Street Journalcalling for the breakup of the United States, seen as “economically beneficial” for those participating in the process! In consideration of the above-noted drive for secession from the United States,  the broadcast reiterates that a bankrupt United States could, following political catastrophe such as a terrorist attack with weapons of mass destruction, disintegrate.

Of particular significance in this context are the movements of the Lakota, the [4]Hawaiians, the League of the South [5] and the Alaskan Independence Party [6]–the first two championed by the Hapsburg-led UNPO [7] and the latter two strongly connected to neo-fascist and white supremacist parties. (Sarah Palin’s political career appears to be a front for the Alaskan Independence Party.)

Also worth noting is the fact that former Reagan administration functionary Christina Luhn is a major proponent of the dissolution of the United States. As discussed is many programs, the Reagan administration was staffed by Helene Von Damm [8], protege of Otto von Bolschwing [9], one of Hitler’s top experts on “Jewish Matters” and a postwar employee of the CIA.

After reviewing Friedrich List’s [10] economic blueprint for German world domination (formulated in the 19th century), the program reviews the Third Reich’s goals to realize List’s design, as well as the postwar Federal Republic’s realization of those goals.

The program concludes by comparing the reality of the dawning economic landscape and the “corporacracy” set forth in the “novel” Serpent’s Walk. Mr. Emory believes that, like The Turner Diaries (also published by National Vanguard Books), the book is actually a blueprint for what is going to take place. It is a novel about a Nazi takeover of the United States in the middle of the 21st century. The book describes the Third Reich going underground, buying into the American media, and taking over the country.

Of particular significance for our purposes here is the “corporacracy” that the SS envisions will enable them to control the world (in this “novel”). It is interesting to reflect on the potential breakup of the U.S. and other nations large enough to countermand the initiatives of trans-national corporations. Such resistance might be the only potential opposition to the “corporacracy” in a world of fragmented [formerly large] nation/states.

Program Highlights Include: Review of links between Holocaust Museum shooter James Van Brunn’s links [11] to Reagan White House official Todd Blodgett; review of National Alliance associate Bob Whitaker’s role [12] in vetting Reagan White House appointees; review of the continuity between SS business projections [13] for postwar Germany and the role in the Federal Republic played by SS protege Ludwig Erhard, pictured at right.

1. The bulk of the first side of the program consists of a stunning op-ed piece in the Wall Street Journal calling for the breakup of the United States! There are a number of things to highlight in the article. For one thing, do not fail to note that the various secessionist movements are those that have linked to those movements championed by the UNPO [14] including the Lakota, (whose territorial claims cover the Bakken [15] formation, rich in petroleum strata) and the native Hawaiians. Note also that fascist-linked secessionist elements such as the neo-Confederate League of the South [5] (whose flag is at right) and the Alaskan Independence Party, for which Sarah Palin runs interference.

Note also that the story highlights [briefly] potential breakup of China (in which both the Tibetans and the Uighurs are pushing for independence from the People’s Republic.)

Remember that classic Beatles riff of the 1960s: “You say you want a revolution?” Imagine this instead: a devolution. Picture an America that is run not, as now, by a top-heavy Washington autocracy but, in freewheeling style, by an assemblage of largely autonomous regional republics reflecting the eclectic economic and cultural character of the society.

There might be an austere Republic of New England, with a natural strength in higher education and technology; a Caribbean-flavored city-state Republic of Greater Miami, with an anchor in the Latin American economy; and maybe even a Republic of Las Vegas with unfettered license to pursue its ambitions as a global gambling, entertainment and conventioneer destination. California? America’s broke, ill-governed and way-too-big nation-like state might be saved, truly saved, not by an emergency federal bailout, but by a merciful carve-up into a trio of republics that would rely on their own ingenuity in making their connections to the wider world. And while we’re at it, let’s make this project bi-national-economic logic suggests a natural multilingual combination between Greater San Diego and Mexico’s Northern Baja, and, to the Pacific north, between Seattle and Vancouver in a megaregion already dubbed “Cascadia” by economic cartographers.

Devolved America is a vision faithful both to certain postindustrial realities as well as to the pluralistic heart of the American political tradition-a tradition that has been betrayed by the creeping centralization of power in Washington over the decades but may yet reassert itself as an animating spirit for the future. Consider this proposition: America of the 21st century, propelled by currents of modernity that tend to favor the little over the big, may trace a long circle back to the original small-government ideas of the American experiment. The present-day American Goliath may turn out to be a freak of a waning age of politics and economics as conducted on a super-sized scale-too large to make any rational sense in an emerging age of personal empowerment that harks back to the era of the yeoman farmer of America’s early days. The society may find blessed new life, as paradoxical as this may sound, in a return to a smaller form.

This perspective may seem especially fanciful at a time when the political tides all seem to be running in the opposite direction. In the midst of economic troubles, an aggrandizing Washington is gathering even more power in its hands. The Obama Administration, while considering replacing top executives at Citigroup, is newly appointing a “compensation czar” with powers to determine the retirement packages of executives at firms accepting federal financial bailout funds. President Obama has deemed it wise for the U.S. Treasury to take a majority ownership stake in General Motors in a last-ditch effort to revive this Industrial Age brontosaurus. Even the Supreme Court is getting in on the act: A ruling this past week awarded federal judges powers to set the standards by which judges for state courts may recuse themselves from cases.

All of this adds up to a federal power grab that might make even FDR’s New Dealers blush. But that’s just the point: Not surprisingly, a lot of folks in the land of Jefferson are taking a stand against an approach that stands to make an indebted citizenry yet more dependent on an already immense federal power. The backlash, already under way, is a prime stimulus for a neo-secessionist movement, the most extreme manifestation of a broader push for some form of devolution. In April, at an anti-tax “tea party” held in Austin, Governor Rick Perry of Texas had his speech interrupted by cries of “secede.” The Governor did not sound inclined to disagree. “Texas is a unique place,” he later told reporters attending the rally. “When we came into the Union in 1845, one of the issues was that we would be able to leave if we decided to do that.”

Such sentiments resonate beyond the libertarian fringe. The Daily Kos, a liberal Web site, recently asked Perry’s fellow Texas Republicans, “Do you think Texas would be better off as an independent nation or as part of the United States of America? It was an even split: 48% for the U.S., 48% for a sovereign Texas, 4% not sure. Amongst all Texans, more than a third-35%-said an independent Texas would be better. The Texas Nationalist Movement claims that over 250,000 Texans have signed a form affirming the organization’s goal of a Texas nation.

Secessionist feelings also percolate in Alaska, where Todd Palin, husband of Governor Sarah Palin, was once a registered member of the Alaska Independence Party. But it is not as if the Right has a lock on this issue: Vermont, the seat of one of the most vibrant secessionist movements, is among the country’s most politically-liberal places. Vermonters are especially upset about imperial America’s foreign excursions in hazardous places like Iraq. The philosophical tie that binds these otherwise odd bedfellows is belief in the birthright of Americans to run their own affairs, free from centralized control. Their hallowed parchment is Jefferson’s Declaration of Independence, on behalf of the original 13 British colonies, penned in 1776, 11 years before the framers of the Constitution gathered for their convention in Philadelphia. “The right of secession precedes the Constitution-the United States was born out of secession,” Daniel Miller, leader of the Texas Nationalist Movement, put it to me. Take that, King Obama.

Today’s devolutionists, of all stripes, can trace their pedigree to the “anti-federalists” who opposed the compact that came out of Philadelphia as a bad bargain that gave too much power to the center at the expense of the limbs. Some of America’s most vigorous and learned minds were in the anti-federalist camp; their ranks included Virginia’s Patrick Henry, of “give me liberty or give me death” renown. The sainted Jefferson, who was serving as a diplomat in Paris during the convention, is these days claimed by secessionists as a kindred anti-federal spirit, even if he did go on to serve two terms as president.

The anti-federalists lost their battle, but history, in certain respects, has redeemed their vision, for they anticipated how many Americans have come to feel about their nation’s seat of federal power. “This city, and the government of it, must indubitably take their tone from the character of the men, who from the nature of its situation and institution, must collect there,” the anti-federalist pamphleteer known only as the Federal Farmer wrote. “If we expect it will have any sincere attachments to simple and frugal republicanism, to that liberty and mild government, which is dear to the laborious part of a free people, we most assuredly deceive ourselves.”

In the mid-19th century, the anti-federalist impulse took a dark turn, attaching itself to the cause of the Confederacy, which was formed by the unilateral secession of 13 southern states over the bloody issue of slavery. Lincoln had no choice but to go to war to preserve the Union-and ever since, anti-federalism, in almost any guise, has had to defend itself from the charge of being anti-modern and indeed retrograde.

But nearly a century and a half has passed since Johnny Rebel whooped for the last time. Slavery is dead, and so too is the large-scale industrial economy that the Yankees embraced as their path to victory over the South and to global prosperity. The model lasted a long time, to be sure, surviving all the way through the New Deal and the first several decades of the post-World War II era, coming a cropper at the tail end of the 1960s, just as the economist John Kenneth Galbraith was holding out “The New Industrial State,” the master-planned economy, as a seemingly permanent condition of modern life.

Not quite. In a globalized economy transformed by technological innovations hatched by happily-unguided entrepreneurs, history seems to be driving one nail after another into the coffin of the big, which is why the Obama planners and their ilk, even if they now ride high, may be doomed to fail. No one anymore expects the best ideas to come from the biggest actors in the economy, so should anyone expect the best thinking to be done by the whales of the political world?

A notable prophet for a coming age of smallness was the diplomat and historian George Kennan, a steward of the American Century with an uncanny ability to see past the seemingly-frozen geopolitical arrangements of the day. Kennan always believed that Soviet power would “run its course,” as he predicted back in 1951, just as the Cold War was getting under way, and again shortly after the Soviet Union collapsed, he suggested that a similar fate might await the United States. America has become a “monster country,” afflicted by a swollen bureaucracy and “the hubris of inordinate size,” he wrote in his 1993 book, “Around the Cragged Hill: A Personal and Political Philosophy.” Things might work better, he suggested, if the nation was “decentralized into something like a dozen constituent republics, absorbing not only the powers of the existing states but a considerable part of those of the present federal establishment.”

Kennan’s genius was to foresee that matters might take on an organic, a bottom-up, life of their own, especially in a society as dynamic and as creative as America. His spirit, the spirit of an anti-federalist modernist, can be glimpsed in an intriguing “mega-region” initiative encompassing greater San Diego County, next-door Imperial County and, to the immediate south of the U.S. border, Northern Baja, Mexico. Elected officials representing all three participating areas recently unveiled “Cali Baja, a Bi-National Mega-Region,” as the “international marketing brand” for the project.

The idea is to create a global economic powerhouse by combining San Diego’s proven abilities in scientific research and development with Imperial County’s abundance of inexpensive land and availability of water rights and Northern Baja’s manufacturing base, low labor costs and ability to supply the San Diego area with electricity during peak-use terms. Bilingualism, too, is a key-with the aim for all children on both sides of the border to be fluent in both English and Spanish. The project director is Christina Luhn, a Kansas native, historian and former staffer on the National Security Council in Ronald Reagan’s White House in the mid-1980s. Contemporary America as a unit of governance may be too big, even the perpetually-troubled state of California may be too big, she told me, by way of saying that the political and economic future may belong to the megaregions of the planet. Her conviction is that large systems tend not to endure-“they break apart, there’s chaos, and at some point, new things form,” she said.

The notion that small is better and even inevitable no doubt has some flavor of romance-even amounting to a kind of modern secular faith, girded by a raft of multi-disciplinary literature that may or may not be relevant. Luhn takes her philosophical cue not only from Kennan but also from the science writer and physicist M. Mitchell Waldrop, author of “Complexity: The Emerging Science at the Edge of Order and Chaos.”

American secessionist groups today range from small startups with a few laptop computers to organized movements with meetings of delegates from several states.

The Middlebury Institute, a group that studies and supports the general cause of separatism and secessionism in the U.S., has held three Secession Congresses since its founding in 2004.

At the most recent gathering, held in New Hampshire last November, one discussion focused on creating a new federation potentially to be called “Novacadia,” consisting of present-day New Hampshire, Vermont, Maine, New Brunswick, Prince Edward Island and Nova Scotia. An article highlighted on the group’s Web site describes Denmark as a role-model for the potential country. In the months following the convention, the idea “did not actually evolve into very much,” says Kirkpatrick Sale, the institute’s director.

Below the Mason-Dixon Line, groups like the League of the South and Southern National Congress hold meetings of delegates. They discuss secession as a way of accomplishing goals like protecting the right to bear arms and tighter immigration policies. The Texas Nationalist Movement claims that over 250,000 Texans have signed a form affirming the organization’s goal of a Texas nation.

A religious group, Christian Exodus, formed in 2003 with the purpose of transforming what is today South Carolina into a sovereign, Christian-run state. According to a statement on its Web site, the group still supports the idea, but has learned that “the chains of our slavery and dependence on Godless government have more of a hold on us than can be broken by simply moving to another state.”

On the West Coast, elected officials representing greater San Diego County, Imperial County and Northern Baja, Mexico, have proposed creating a “mega-region” of the three areas called “Cali Baja, a Bi-National Mega-Region.”

Hawaii is home to numerous groups that work toward the goal of sovereignty, including Nation of Hawaii. The group argues that native Hawaiians were colonized and forced into statehood against their will and without fair process, and therefore have the right to decide how to govern themselves today. In Alaska, the Alaska Independence Party advocates for the state’s independence.

There is also a Web site for a group called North Star Republic, with a mission to establish a socialist republic in what today is Minnesota, Wisconsin and Michigan.

A group of American Indians led by activist Russell Means is working to establish the Republic of Lakotah, which would cover parts of North Dakota, South Dakota, Montana, Wyoming and Nebraska. In 2007, the Republic presented the U.S. State Department with a notice of withdrawal.

Even for the hard-edged secessionist crowd, with their rapt attentiveness to America’s roots, popular texts in the future-trend genre mingle in their minds with the yellowed scrolls of the anti-federalists. “The cornerstone of my thought,” Daniel Miller of the Texas Nationalist Movement told me, is John Naisbitt’s 1995 best seller, “Global Paradox,” which celebrates the entrepreneurial ethos in positing that “the bigger the world economy, the more powerful its smallest players.”

More convincingly, the proposition that small trumps big is passing tests in real-life political and economic laboratories. For example, the U.S. ranked eighth in a survey of global innovation leadership released in March by the Boston Consulting Group and the National Association of Manufacturers-with the top rankings dominated by small countries led by the city-state republic of Singapore. The Thunderbird School of Global Management, based in Arizona, has called Singapore “the most future-oriented country in the world.” Historians can point to the spectacularly inventive city-states of Renaissance Italy as an example of the small truly making the beautiful.

How, though, to get from big to small? Secessionists like Texas’ Miller pledge a commitment to peaceful methods. History suggests skepticism on this score: Even the American republic was born in a violent revolution. These days, the Russian professor Igor Panarin, a former KGB analyst, has snagged publicity with his dystopian prediction of civil strife in a dismembered America whose jagged parts fall prey to foreign powers including Canada, Mexico and, in the case of Alaska, Russia, naturally.

Still, the precedent for any breakup of today’s America is not necessarily the one set by the musket-bearing colonists’ demanded departure from the British crown in the late 18th century or by the crisis-ridden dissolution of the U.S.S.R. at the end of the 20th century. Every empire, every too-big thing, fragments or shrinks according to its own unique character and to the age of history to which it belongs.

The most hopeful prospect for the USA, should the decentralization impulse prove irresistible, is for Americans to draw on their natural inventiveness and democratic tradition by patenting a formula for getting the job done in a gradual and cooperative way. In so doing, geopolitical history, and perhaps even a path for others, might be made, for the problem of bigness vexes political leviathans everywhere. In India, with its 1.2 billion people, there is an active discussion of whether things might work better if the nation-state was chopped up into 10 or so large city-states with broad writs of autonomy from New Delhi. Devolution may likewise be the future for the European continent-think Catalonia-and for the British Isles. Scotland, a leading source of Enlightenment ideas for America’s founding fathers, now has its own flourishing independence movement. Even China, held together by an aging autocracy, may not be able to resist the drift towards the smaller.

So why not America as the global leader of a devolution? America’s return to its origins-to its type-could turn out to be an act of creative political destruction, with “we the people” the better for it.

“Divided We Stand” by Paul Starobin; The Wall Street Journal; 6/13/2009. [3]

2. Cited as a positive influence in his advocacy of a “smaller” United States, George Kennan was in fact an an antediluvian reactionary.

“. . . A Washington Post obituary provided an insight into the mind of one of the foremost figures of post-World War II U.S. foreign policy and his antipathy for the modern world. ‘Walter Isaacson and Evan Thomas reported in their book The Wise Men that he suggested in an unpublished work that women, blacks and immigrants be disenfranchised. He deplored the automobile, computers, commercialism, environmental degradation and other manifestations of modern life.’ . . .”

Afghanistan’s Untold Story by Paul Fitzgerald and Liz Gould; Copyright 2009 by Paul Fitzgerald and Liz Gould; City Lights Books (SC); ISBN 13: 978-0-87286-494-8; p. 270.

3. Noting that secession advocate Christina Luhn was a veteran of the Reagan administration, we review some of the Nazi character of that administration. Accused Holocaust Museum killer James Van Brunn was linked to former Reagan White House aide Todd Blodgett. In this context, it is important to recall that the Reagan administration personnel were selected by Otto von Bolschwing [16] protege Helene Von Damm [17].

“. . . Todd Blodgett, a former White House aide to President Ronald Reagan who later became affiliated with extremist groups, said he spent a lot of time with Von Brunn in the 1990s and early 2000s.

Von Brunn is obsessed with Jewish people, Blodgett told the Post. He had equal contempt for both Jews and blacks, but if he had to pick one group to wipe out, he’d always say it would be Jews.

Von Brunn went so far as to say he fought on the wrong side of World War II, according to Blodgett.

You’d get the impression that he was intelligent and a bit off, said Blodgett, who worked as a paid FBI informant on white supremacist groups. . . .”

“Holocaust Museum Shooting Suspect Had Been Growing More Hateful and Desperate”; Fox News; 6/11/2009. [11]

4. Again noting the legacy of the Helene Von Damm/Otto von Bolschwing [18] axis within the GOP and the Reagan administrations, the program highlights the fact that American neo-Nazi Bob Whitaker [19] held a sensitive position within the Reagan White House. Again, available evidence suggests very strongly that Von Damm [20] served as a functionary of the Underground Reich. Notice the position of National Alliance associate Bob Whitaker within the Reagan administration: ” . . . Special Assistant to the Director of the Office of Personnel Management, in charge of security clearances, staffing, and that sort of thing. . . .”

It will be interesting to see if people infiltrated into government by the likes of Whitaker and Von Damm play a role in the breakup of the United States.

” . . . KAS: When we introduced you for the first time to our readers in National Vanguard, we gave a capsule biography of you as follows:

‘Mr. Whitaker was born and raised in South Carolina, and attended the University of South Carolina and the University of Virginia Graduate School. He has been a college professor, an international aviation negotiator, a Capitol Hill senior staffer, a Reagan Administration appointee, and a writer for the Voice of America.”

So you’re a Reagan administration appointee — what’s the story behind that?

BW: I was Special Assistant to the Director of the Office of Personnel Management, in charge of security clearances, staffing, and that sort of thing.

KAS: Why is someone with such excellent establishment credentials defending the White race, as you do in your work, without apology or regret? Isn’t that something that simply ‘isn’t done’ these days by anyone who wants to retain his position in private or public life?

BW: Well, I did it. And they cleared me at the highest possible levels, so if you do it right, you can do it. And I’m good at it. . . .”

“A White Future is Coming: an Interview with Bob Whitaker” by Kevin Alfred Strom; American Dissident Voices; 7/3/2004. [12]

5. Next, the program reviews the Nazi plans for Europe after their victory. Writing in 1943, author Paul Winkler foresaw that the Prusso-Teutonics would realize their goals through the creation of a German-dominated central European economic union (bearing a striking resemblance to today’s European Monetary Union.) One of the principal influences on List’s thinking was the “continental” concept of Napoleon, who attempted to economically unite Europe under French influence.

The Listian formula for German world dominance should be viewed against the background of the materials set forth below concerning the successful realization of continuity from the Third Reich to the “new” Federal Republic of Germany.

How will this central European economic union interact with a dismembered United States?

“Charles Andler, a French author, summed up certain ideas of List in his work, The Origins of Pan-Germanism, (published in 1915.) ‘It is necessary to organize continental Europe against England. Napoleon I, a great strategist, also knew the methods of economic hegemony. His continental system, which met with opposition even from countries which might have profited from such an arrangement should be revived, but, this time, not as an instrument of Napoleonic domination. The idea of united Europe in a closed trade bloc is no longer shocking if Germany assumes domination over such a bloc—and not France. [Emphasis added.] Belgium, Holland, Switzerland, willingly or by force, will enter this ‘Customs Federation.’ Austria is assumed to be won over at the outset. Even France, if she gets rid of her notions of military conquest, will not be excluded. The first steps the Confederation would take to assure unity of thought and action would be to establish a joint representative body, as well as to organize a common fleet. But of course, both the headquarters of the Federation and its parliamentary seat would be in Germany. [Emphasis added.]”

(The Thousand-Year Conspiracy; by Paul Winkler; Charles Scribner’s Sons [HC]; 1943; pp. 15-16.) [21]

6. A stunning measure of the success of the Underground Reich and German Ostpolitik can be obtained by reading Dorothy Thompson’s analysis of the Third Reich’s plans for world dominance by a centralized European economic union. (In this, we can again see the plans of pan-German theoretician Friedrich List, as realized by the European Monetary Union.) Ms. Thompson was writing in The New York Herald Tribune on May 31, 1940! Her comments are reproduced by Tetens on page 92.

“The Germans have a clear plan of what they intend to do in case of victory. I believe that I know the essential details of that plan. I have heard it from a sufficient number of important Germans to credit its authenticity . . . Germany’s plan is to make a customs union of Europe, with complete financial and economic control centered in Berlin. This will create at once the largest free trade area and the largest planned economy in the world. In Western Europe alone . . . there will be an economic unity of 400 million persons . . . To these will be added the resources of the British, French, Dutch and Belgian empires. These will be pooled in the name of Europa Germanica . . .”

“The Germans count upon political power following economic power, and not vice versa. Territorial changes do not concern them, because there will be no ‘France’ or ‘England,’ except as language groups. Little immediate concern is felt regarding political organizations . . . . No nation will have the control of its own financial or economic system or of its customs. The Nazification of all countries will be accomplished by economic pressure. In all countries, contacts have been established long ago with sympathetic businessmen and industrialists . . . . As far as the United States is concerned, the planners of the World Germanica laugh off the idea of any armed invasion. They say that it will be completely unnecessary to take military action against the United States to force it to play ball with this system. . . . Here, as in every other country, they have established relations with numerous industries and commercial organizations, to whom they will offer advantages in co-operation with Germany. . . .”

Germany Plots with the Kremlin by T. H. Tetens; Henry Schuman [HC]; p. 92. [22]

7. Illustrating the realization of continuity between the Third Reich and the new German economic empire realized through the EU and the European Monetary Union, the show features a recent Daily Mail article that bears out much of the line of argument presented in For The Record.

Of particular significance for our purposes here is Joseph Goebbels prediction that ” . . . ‘In 50 years’ time nobody will think of nation states.’” Reflect on Goebbels’ statement against the background of a dismembered United States.

“The paper is aged and fragile, the typewritten letters slowly fading. But US Military Intelligence report EW-Pa 128 is as chilling now as the day it was written in November 1944.

The document, also known as the Red House Report, is a detailed account of a secret meeting at the Maison Rouge Hotel in Strasbourg on August 10, 1944. There, Nazi officials ordered an elite group of German industrialists to plan for Germany’s post-war recovery, prepare for the Nazis’ return to power and work for a ’strong German empire’. In other words: the Fourth Reich.

The three-page, closely typed report, marked ‘Secret’, copied to British officials and sent by air pouch to Cordell Hull, the US Secretary of State, detailed how the industrialists were to work with the Nazi Party to rebuild Germany’s economy by sending money through Switzerland.

They would set up a network of secret front companies abroad. They would wait until conditions were right. And then they would take over Germany again.

The industrialists included representatives of Volkswagen, Krupp and Messerschmitt. Officials from the Navy and Ministry of Armaments were also at the meeting and, with incredible foresight, they decided together that the Fourth German Reich, unlike its predecessor, would be an economic rather than a military empire – but not just German.

The Red House Report, which was unearthed from US intelligence files, was the inspiration for my thriller The Budapest Protocol.

The book opens in 1944 as the Red Army advances on the besieged city, then jumps to the present day, during the election campaign for the first president of Europe. The European Union superstate is revealed as a front for a sinister conspiracy, one rooted in the last days of the Second World War.

But as I researched and wrote the novel, I realised that some of the Red House Report had become fact.

Nazi Germany did export massive amounts of capital through neutral countries. German businesses did set up a network of front companies abroad. The German economy did soon recover after 1945.

The Third Reich was defeated militarily, but powerful Nazi-era bankers, industrialists and civil servants, reborn as democrats, soon prospered in the new West Germany. There they worked for a new cause: European economic and political integration.

Is it possible that the Fourth Reich those Nazi industrialists foresaw has, in some part at least, come to pass?

The Red House Report was written by a French spy who was at the meeting in Strasbourg in 1944 – and it paints an extraordinary picture.

The industrialists gathered at the Maison Rouge Hotel waited expectantly as SS Obergruppenfuhrer Dr Scheid began the meeting. Scheid held one of the highest ranks in the SS, equivalent to Lieutenant General. He cut an imposing figure in his tailored grey-green uniform and high, peaked cap with silver braiding. Guards were posted outside and the room had been searched for microphones.

There was a sharp intake of breath as he began to speak. German industry must realise that the war cannot be won, he declared. ‘It must take steps in preparation for a post-war commercial campaign.’ Such defeatist talk was treasonous – enough to earn a visit to the Gestapo’s cellars, followed by a one-way trip to a concentration camp.

But Scheid had been given special licence to speak the truth – the future of the Reich was at stake. He ordered the industrialists to ‘make contacts and alliances with foreign firms, but this must be done individually and without attracting any suspicion’.

The industrialists were to borrow substantial sums from foreign countries after the war.

They were especially to exploit the finances of those German firms that had already been used as fronts for economic penetration abroad, said Scheid, citing the American partners of the steel giant Krupp as well as Zeiss, Leica and the Hamburg-America Line shipping company.

But as most of the industrialists left the meeting, a handful were beckoned into another smaller gathering, presided over by Dr Bosse of the Armaments Ministry. There were secrets to be shared with the elite of the elite.

Bosse explained how, even though the Nazi Party had informed the industrialists that the war was lost, resistance against the Allies would continue until a guarantee of German unity could be obtained. He then laid out the secret three-stage strategy for the Fourth Reich.

In stage one, the industrialists were to ‘prepare themselves to finance the Nazi Party, which would be forced to go underground as a Maquis’, using the term for the French resistance.

Stage two would see the government allocating large sums to German industrialists to establish a ’secure post-war foundation in foreign countries’, while ‘existing financial reserves must be placed at the disposal of the party so that a strong German empire can be created after the defeat’.

In stage three, German businesses would set up a ’sleeper’ network of agents abroad through front companies, which were to be covers for military research and intelligence, until the Nazis returned to power.

‘The existence of these is to be known only by very few people in each industry and by chiefs of the Nazi Party,’ Bosse announced.

‘Each office will have a liaison agent with the party. As soon as the party becomes strong enough to re-establish its control over Germany, the industrialists will be paid for their effort and co-operation by concessions and orders.’

The exported funds were to be channelled through two banks in Zurich, or via agencies in Switzerland which bought property in Switzerland for German concerns, for a five per cent commission.

The Nazis had been covertly sending funds through neutral countries for years.

Swiss banks, in particular the Swiss National Bank, accepted gold looted from the treasuries of Nazi-occupied countries. They accepted assets and property titles taken from Jewish businessmen in Germany and occupied countries, and supplied the foreign currency that the Nazis needed to buy vital war materials.

Swiss economic collaboration with the Nazis had been closely monitored by Allied intelligence.

The Red House Report’s author notes: ‘Previously, exports of capital by German industrialists to neutral countries had to be accomplished rather surreptitiously and by means of special influence.

‘Now the Nazi Party stands behind the industrialists and urges them to save themselves by getting funds outside Germany and at the same time advance the party’s plans for its post-war operations.’

The order to export foreign capital was technically illegal in Nazi Germany, but by the summer of 1944 the law did not matter.

More than two months after D-Day, the Nazis were being squeezed by the Allies from the west and the Soviets from the east. Hitler had been badly wounded in an assassination attempt. The Nazi leadership was nervous, fractious and quarrelling.

During the war years the SS had built up a gigantic economic empire, based on plunder and murder, and they planned to keep it.

A meeting such as that at the Maison Rouge would need the protection of the SS, according to Dr Adam Tooze of Cambridge University, author of Wages of Destruction: The Making And Breaking Of The Nazi Economy.

He says: ‘By 1944 any discussion of post-war planning was banned. It was extremely dangerous to do that in public. But the SS was thinking in the long-term. If you are trying to establish a workable coalition after the war, the only safe place to do it is under the auspices of the apparatus of terror.’

Shrewd SS leaders such as Otto Ohlendorf were already thinking ahead.

As commander of Einsatzgruppe D, which operated on the Eastern Front between 1941 and 1942, Ohlendorf was responsible for the murder of 90,000 men, women and children.

A highly educated, intelligent lawyer and economist, Ohlendorf showed great concern for the psychological welfare of his extermination squad’s gunmen: he ordered that several of them should fire simultaneously at their victims, so as to avoid any feelings of personal responsibility.

By the winter of 1943 he was transferred to the Ministry of Economics. Ohlendorf’s ostensible job was focusing on export trade, but his real priority was preserving the SS’s massive pan-European economic empire after Germany’s defeat.

Ohlendorf, who was later hanged at Nuremberg, took particular interest in the work of a German economist called Ludwig Erhard. Erhard had written a lengthy manuscript on the transition to a post-war economy after Germany’s defeat. This was dangerous, especially as his name had been mentioned in connection with resistance groups.

But Ohlendorf, who was also chief of the SD, the Nazi domestic security service, protected Erhard as he agreed with his views on stabilising the post-war German economy. Ohlendorf himself was protected by Heinrich Himmler, the chief of the SS.

Ohlendorf and Erhard feared a bout of hyper-inflation, such as the one that had destroyed the German economy in the Twenties. Such a catastrophe would render the SS’s economic empire almost worthless.

The two men agreed that the post-war priority was rapid monetary stabilisation through a stable currency unit, but they realised this would have to be enforced by a friendly occupying power, as no post-war German state would have enough legitimacy to introduce a currency that would have any value.

That unit would become the Deutschmark, which was introduced in 1948. It was an astonishing success and it kick-started the German economy. With a stable currency, Germany was once again an attractive trading partner.

The German industrial conglomerates could rapidly rebuild their economic empires across Europe.

War had been extraordinarily profitable for the German economy. By 1948 – despite six years of conflict, Allied bombing and post-war reparations payments – the capital stock of assets such as equipment and buildings was larger than in 1936, thanks mainly to the armaments boom.

Erhard pondered how German industry could expand its reach across the shattered European continent. The answer was through supranationalism – the voluntary surrender of national sovereignty to an international body.

Germany and France were the drivers behind the European Coal and Steel Community (ECSC), the precursor to the European Union. The ECSC was the first supranational organisation, established in April 1951 by six European states. It created a common market for coal and steel which it regulated. This set a vital precedent for the steady erosion of national sovereignty, a process that continues today.

But before the common market could be set up, the Nazi industrialists had to be pardoned, and Nazi bankers and officials reintegrated. In 1957, John J. McCloy, the American High Commissioner for Germany, issued an amnesty for industrialists convicted of war crimes.

The two most powerful Nazi industrialists, Alfried Krupp of Krupp Industries and Friedrich Flick, whose Flick Group eventually owned a 40 per cent stake in Daimler-Benz, were released from prison after serving barely three years.

Krupp and Flick had been central figures in the Nazi economy. Their companies used slave labourers like cattle, to be worked to death.

The Krupp company soon became one of Europe’s leading industrial combines.

The Flick Group also quickly built up a new pan-European business empire. Friedrich Flick remained unrepentant about his wartime record and refused to pay a single Deutschmark in compensation until his death in July 1972 at the age of 90, when he left a fortune of more than $1billion, the equivalent of £400million at the time.

‘For many leading industrial figures close to the Nazi regime, Europe became a cover for pursuing German national interests after the defeat of Hitler,’ says historian Dr Michael Pinto-Duschinsky, an adviser to Jewish former slave labourers.

‘The continuity of the economy of Germany and the economies of post-war Europe is striking. Some of the leading figures in the Nazi economy became leading builders of the European Union.’

Numerous household names had exploited slave and forced labourers including BMW, Siemens and Volkswagen, which produced munitions and the V1 rocket.

Slave labour was an integral part of the Nazi war machine. Many concentration camps were attached to dedicated factories where company officials worked hand-in-hand with the SS officers overseeing the camps.

Like Krupp and Flick, Hermann Abs, post-war Germany’s most powerful banker, had prospered in the Third Reich. Dapper, elegant and diplomatic, Abs joined the board of Deutsche Bank, Germany’s biggest bank, in 1937. As the Nazi empire expanded, Deutsche Bank enthusiastically ‘Aryanised’ Austrian and Czechoslovak banks that were owned by Jews.

By 1942, Abs held 40 directorships, a quarter of which were in countries occupied by the Nazis. Many of these Aryanised companies used slave labour and by 1943 Deutsche Bank’s wealth had quadrupled.

Abs also sat on the supervisory board of I.G. Farben, as Deutsche Bank’s representative. I.G. Farben was one of Nazi Germany’s most powerful companies, formed out of a union of BASF, Bayer, Hoechst and subsidiaries in the Twenties.

It was so deeply entwined with the SS and the Nazis that it ran its own slave labour camp at Auschwitz, known as Auschwitz III, where tens of thousands of Jews and other prisoners died producing artificial rubber.

When they could work no longer, or were verbraucht (used up) in the Nazis’ chilling term, they were moved to Birkenau. There they were gassed using Zyklon B, the patent for which was owned by I.G. Farben.

But like all good businessmen, I.G. Farben’s bosses hedged their bets.

During the war the company had financed Ludwig Erhard’s research. After the war, 24 I.G. Farben executives were indicted for war crimes over Auschwitz III – but only twelve of the 24 were found guilty and sentenced to prison terms ranging from one-and-a-half to eight years. I.G. Farben got away with mass murder.

Abs was one of the most important figures in Germany’s post-war reconstruction. It was largely thanks to him that, just as the Red House Report exhorted, a ’strong German empire’ was indeed rebuilt, one which formed the basis of today’s European Union.

Abs was put in charge of allocating Marshall Aid – reconstruction funds – to German industry. By 1948 he was effectively managing Germany’s economic recovery.

Crucially, Abs was also a member of the European League for Economic Co-operation, an elite intellectual pressure group set up in 1946. The league was dedicated to the establishment of a common market, the precursor of the European Union.

Its members included industrialists and financiers and it developed policies that are strikingly familiar today – on monetary integration and common transport, energy and welfare systems.

When Konrad Adenauer, the first Chancellor of West Germany, took power in 1949, Abs was his most important financial adviser.

Behind the scenes Abs was working hard for Deutsche Bank to be allowed to reconstitute itself after decentralisation. In 1957 he succeeded and he returned to his former employer.

That same year the six members of the ECSC signed the Treaty of Rome, which set up the European Economic Community. The treaty further liberalised trade and established increasingly powerful supranational institutions including the European Parliament and European Commission.

Like Abs, Ludwig Erhard flourished in post-war Germany. Adenauer made Erhard Germany’s first post-war economics minister. In 1963 Erhard succeeded Adenauer as Chancellor for three years.

But the German economic miracle – so vital to the idea of a new Europe – was built on mass murder. The number of slave and forced labourers who died while employed by German companies in the Nazi era was 2,700,000.

Some sporadic compensation payments were made but German industry agreed a conclusive, global settlement only in 2000, with a £3billion compensation fund. There was no admission of legal liability and the individual compensation was paltry.

A slave labourer would receive 15,000 Deutschmarks (about £5,000), a forced labourer 5,000 (about £1,600). Any claimant accepting the deal had to undertake not to launch any further legal action.

To put this sum of money into perspective, in 2001 Volkswagen alone made profits of £1.8billion.

Next month, 27 European Union member states vote in the biggest transnational election in history. Europe now enjoys peace and stability. Germany is a democracy, once again home to a substantial Jewish community. The Holocaust is seared into national memory.

But the Red House Report is a bridge from a sunny present to a dark past. Joseph Goebbels, Hitler’s propaganda chief, once said: ‘In 50 years’ time nobody will think of nation states.’

For now, the nation state endures. But these three typewritten pages are a reminder that today’s drive towards a European federal state is inexorably tangled up with the plans of the SS and German industrialists for a Fourth Reich – an economic rather than military imperium.”

“Revealed:The Secret Report That Shows How the Nazis Planned a Fourth Reich . . . in the EU” by Adam Lebor; Mail Online; 5/9/2009. [13]

8. The program compares the reality of the dawning economic landscape and the “corporacracy” set forth in the “novel” Serpent’s Walk. Mr. Emory believes that, like The Turner Diaries (also published by National Vanguard Books), the book is actually a blueprint for what is going to take place. It is a novel about a Nazi takeover of the United States in the middle of the 21st century. The book describes the Third Reich going underground, buying into the American media, and taking over the country.

Of particular significance for our purposes here is the “corporacracy” that the SS envisions will enable them to control the world (in this “novel”). It is interesting to reflect on the potential breakup of the U.S. and other nations large enough to countermand the initiatives of trans-national corporations. Such resistance might be the only potential opposition to the “corporacracy” in a world of fragmented [formerly large] nation/states.

As noted by Joseph Goebbels more than 50 years ago [and quoted in the Daily Mail article above], no one will be talking about nation states a half century after the Third Reich.

“It assumes that Hitler’s warrior elite—the SS—didn’t give up their struggle for a White world when they lost the Second World War. Instead their survivors went underground and adopted some of their tactics of their enemies: they began building their economic muscle and buying into the opinion-forming media. A century after the war they are ready to challenge the democrats and Jews for the hearts and minds of White Americans, who have begun to have their fill of government-enforced multi-culturalism and ‘equality.’”

(From the back cover of Serpent’s Walk by “Randolph D. Calverhall;” Copyright 1991 [SC]; National Vanguard Books; 0-937944-05-X.)