excerpted from the book
The Book That Drove Henry Kissinger
[international drug trafficking,
money-laundering, and state power]
Executive Intelligence Review,
1992, paperback (original 1986)
When we speak of the drug-related illegal economy-for drugs are
the pivot on which most other illegal activity turns - we are
talking of a $500 billion per year business. That is net, not
gross, annual sales of drugs, plus related illicit payments. How
can such activity avoid sticking out wildly, especially in areas
of concentration such as the Far East? Because the British monarchy
organized most of the Far East to conform to the drug traffic!
How can $500 billion in illegal payments get through the international
banking system past the eyes of law enforcement authorities? The
answer is: the British "offshore" banking system. This
and related precious metals and gems trade were designed around
illegal money in the first place!
The law enforcement record shows that Dope, Inc. does its best
to avoid mishaps through careful research-done on the streets
of American cities-which is transmitted back to the poppy fields.
Poppy growers in the Burmese or the Chinese Yunnan Province mountains
and foothills do not plant what they feel like, but what they
are told to plant.
Once world illegal opiates traffic comes under scrutiny as an
integrated, centralized "monopoly," the discrepancy
between the huge oversupply and relatively restricted demand presents
no further difficulties. We are looking at an "industry"
based on the same principles as the world diamond cartel controlled
by De Beers, or the so-called club among leading pharmaceuticals
manufacturers. Diamond production capacity is so large relative
to the absorption capacity of the world market that De Beers'
Central Selling Organization, running 85% of world diamond wholesale
trade, limits availability in order to obtain essentially the
price it wants. Pharmaceuticals are, ironically, an even better
example. Since the knowledge to manufacture more of the commonly
used prescription drugs is widespread among the pharmaceuticals
companies, and since the costs of production are insignificant
compared to the retail prices of most drugs, elaborate legal arrangements
are necessary to prevent a price collapse. Notoriously, the profits
of the pharmaceuticals industry owe not to chemists but to patent
The $500 billion international narcotics trade today is second
only to the world oil trade. Total world trade volume is $1.7
... The question that emerges now is:
"How is it possible that $500 billion and up in dirty money,
crisscrossing international borders, can remain outside the control
of the law?" Again, only one possible answer can be admitted:
A huge chunk of international banking and related financial operations
has been created solely to manage dirty money.
The British banking operations that control illegal drug and related
trade are ... the only possible banking network that could handle
the requisite volume of illegal traffic. The British oligarchy's
banking operations - including the Boston-New York "Tory"
banking establishment of the United States - have the following
1. They have run the drug trade for a
century and a half.
2. They dominate those banking centers
closed off to law enforcement agencies.
3. Almost all such "offshore,"
unregulated banking centers are under the direct political control
of the British monarchy and their allies.
4. They dominate all banking at the heart
of the narcotics traffic; the Hongkong and Shanghai Bank, created
in 1864 to finance the drug trade, is exemplary.
5. They control world trade in gold and
diamonds, a necessary aspect of "hard commodity" exchange
6. They subsume the full array of connections
to organized crime, the prodrug legislative lobby in the United
States, and all other required elements of distribution, protection,
and legal support.
The offshore banking markets are precisely what the name implies:
either Britain's old island colonies refurbished for international
banking, or inland feudal relics like Andorra and Liechtenstein.
Federal bank regulators will only stare at their shoes when asked
what goes on in such locations.
In the Cayman Islands, one of the largest
offshore centers, the only government is the official "Tax
Haven Commission." Law enforcement officers have absolutely
no way of getting hold of bank records in such places. Repeatedly,
they have identified the offshore centers as the place to look
for dirty money. They have not been able to investigate, because
almost all the centers are under British political protection.
American banks do a land office business
in the offshore centers, precisely because no reserves are needed,
and every dollar of deposits can be lent out for interest.
With very few exceptions, offshore banking as a whole is under
the thumb of the British oligarchy.
Although Switzerland has signed a treaty with the United States
permitting law enforcement officers to investigate and seize funds
relating to illegal narcotics traffic, Swiss banks are notorious
depots for dirty money.
American drug enforcement authorities know that most of the dirty
money arising from the U.S. drug trade and related illegal activities
ends up in the Bahamas.
Virtually the only one of the offshore centers not under official
British control is Panama; not coincidentally, Panama is the only
offshore center where American banks strongly outnumber British
banks. That is not to say that Panama is clean; on the contrary,
funds derived from the Colombian trade in marijuana and cocaine
are laundered through Panama, including through the three large
Colombian banks resident there.
Hong Kong was set up by the British, literally from bare rock,
as a center for the drug trade, and remains to this day purely
British, and purely a center for the drug trade.
The Drug Enforcement Administration and other law enforcement
organizations know how the cycle of dirty money in the United
States works. The $200 billion retail proceeds of the total drug
traffic in the United States are partly recycled into the drug
operation in the United States itself, with large "offtake"
by each level of the crime machine. The net profits, in cash,
are laundered through hotels, restaurants, gambling casinos, and
sports events-the "corporate profile" of the Max Jacobs
family and other field officers of the drug machine.
Alter the cash is laundered through these
nominally legitimate channels, it is transferred to offshore banking
operations or their equivalent. Then, according to DEA officials,
the funds take several trips around the world over the telex machines
of offshore banks, passing through at least a half-dozen, and
usually more, different bank accounts and corporate fronts, from
the Caymans to Liechtenstein, from Liechtenstein to the Bahamas,
from the Bahamas to a "nonresident corporation" in Canada,
from Canada to Panama, and so forth.
At various points in the process, the
funds will purchase diamonds, gold, paintings, or similar portable
valuables. At a further point, the valuables will be translated
back into cash, eliminating even the trace of a bank transfer.
For this reason, the use of undercover agents, in place even at
fairly high levels in known branches of narcotics-trafficking,
has a poor record of detecting either the source or ultimate destination
of narcotics-related funds.
Once laundered, the proceeds of the drug
traffic and related illegal activities divide into three channels.
First, between 10 and 20% of the total is recycled back to the
opium wholesalers in the Far East and the marijuana and cocaine
wholesalers in the Caribbean and Latin America, constituting the
net profits of the wholesale drug trade. A second part is invested
in expansion of offshore operations, particularly gambling casinos,
resorts, and other profitable operations that are also useful
for further laundering of dirty money. The remainder is reinvested
in the United States in "legitimate" racing, gambling,
hotels, restaurants, and other business appropriate for cash-laundering
and expansion of the domestic drug traffic.
Retail dope dealers take well over $200 billion a year off American
streets and school corridors. Most of this money, though not all,
flows in one way or another back to wholesale traffickers who
need to "launder" it. They start with close to $200
billion in cash, and end up with bank accounts in the British-protected
offshore banking havens / in the Caribbean or Asia.
Vast quantities of gold are absorbed into the Asian drug trade
- an inestimable percentage of the 400 to 600 tons of the metal
that pass through the Orient in a year, mainly through Hong Kong,
and mainly through subsidiaries of the Hong-Shang [Bank]. The
trade could not run without it and other precious, portable, untraceable
Hong Kong depends entirely on the London gold pool for its supplies.
The London gold pool is the same operation
as the Hongkong and Shanghai Bank, controlled by the same London
families whose drug-running activities go back 150 years.
There are two major South African gold
producers, AngloAmerican and Consolidated Gold Fields; there is
one major South African diamond producer De Beers, largely owned
by Anglo-American; and five major London gold pool firms, who
meet every day in the trading room of N.M. Rothschild at New Court,
St. Swithin Street, London, to set the world gold "fixing."
Examining these firms individually, we discover such a manifold
of connections that it is meaningless to speak of the London and
Hong Kong gold markets as anything but branch offices of the same
Second in importance[to gold] in the money-laundering process
is the world diamonds market, whose single presiding manager is
Sir Harry Oppenheimer of the De Beers Corporation. Oppenheimer
is also the chairman of the larger South African gold producer,
Anglo-American. The Anglo-American and De Beers complex runs the
Hong Kong side of the money-laundering diamonds operation on two
levels-wholesale and retail. De Beers runs 85% of the wholesale
diamonds market; through his intimate Israeli connections, Oppenheimer
also runs the Hong Kong diamond market.
There are two points of special relevance
for diamonds to the international heroin traffic. The first is
that, in value relative. to size and weight, diamonds are the
closest approximation to heroin as a store of value for furtive
use. Second, the De Beers-controlled international diamond cartel
operates according to a pyramidal structure identical to that
of the world heroin trade.
The use of expatriate ethnic networks
for the dirtier side of the operations is also homologous, except
that in the case of diamonds, largely Jewish networks take the
place of Ch'ao Chou Chinese networks. Not coincidentally, there
is almost as little publicly available information on international
diamonds trade as on the heroin traffic.
South Africa's largest producer, De Beers,
was the 1888 creation of Cecil Rhodes; in 1929, the company underwent
reorganization by Sir Ernest Oppenheimer, of the Anglo-American
family. De Beers controls the Central Selling Organization (CSO),
which handles 85% of international diamond trade.
At ten "sights" each year, 300
clients purchase stones from the CSO. The list of these select
clients is secret. After their purchase by the secret list of
clients, the diamonds are sent to cutting centers for further
preparation. The two dominant cutting centers are Antwerp and
Ashqelon, in Israel. Antwerp's diamond-cutting and related trade
is financed by the Banque Bruxelles-Lambert, controlled by the
Lambert family, the Belgian cousins of the Rothschilds. Israel's
(and also New York's) diamond business is financed by Bank Leumi...
Within the individual centers, dealers
trade among themselves on such exchanges as the New York Diamond
Dealers Club, the Ramat Gan in Tel Aviv, and the Antwerp Diamond
Bourse. No written records are kept of any transactions on these
exchanges; the agreements are sealed with a handshake. No aspects
of this trade are available for scrutiny by law enforcement agencies,
even under American law, before the diamonds reach the jewelry
... Hong Kong's own substantial wholesale
diamond market was the virtual monopoly of the UnionBank of Israel;
this bank was wholly owned by Israel's largest finance house,
Bank Leumi. Bank Leumi, in turn, was under the control of Barclays
Bank, on whose board sat Harry Oppenheimer and the Oppenheimer
family itself. Bank Leumi's own chairman was Ernst Israel Japhet,
of the Charterhouse Japhet family whose fortune derived from the
official British opium trade during the nineteenth century!
Ten times a year, representatives from
the Ramat Gan, Tel Aviv's diamond exchange, go with Union Bank
financing to the De Beers Central Selling Organization "sights"
in London, and purchase one-third of the world diamond output.
Like the Beijing-British controlled Ch'ao
Chou networks in the Far East, Britain's Anglo-Zionist financiers
are a cult unto themselves, with their own family networks, rituals,
and language. New York's diamond market consists, at the lower
levels, mainly of members of the Hasidic sects resident in the
Hong Kong, and its premier bank, the Hongkong and Shanghai Banking
Corporation, sit on top of the Golden Triangle drug production
The British Crown Colony of Hong Kong, with the British Hongkong
and Shanghai Banking Corporation at the top, is considered the
number-one money-laundering center for the heroin trade.
... Illegal drugs are the biggest business
in the Far East-and close to being the biggest business in the
world - but in Hong Kong, drugs do not merely dominate the economy:
They are the economy.
Hong Kong is the most drug-ridden place in the world, per capita.
Official British police estimates have it that 10% of Hong Kong's
population or 500,000 people, are hardcore addicts. Unofficial
estimates run this figure up to 50%. A safe, conservative estimate
is 20% or 1 million people - more than New York City's addicts...
with a drugged up population of that size, the life of Hong Kong's
population must be organized around illegal activity.
Most estimates put [New York's drug] addict population at 500,000.
Assuming a $50 per day habit is average-which the federal estimates
apparently do - this addict population must obtain $9 billion
a year out of New York City's faltering economy to meet its needs.
Where does it get $9 billion? Not substantially
through well-paying jobs. With rare exceptions that is physically
impossible. Not from muggings; however bad matters seem, neither
500,000 muggings, nor a combination of muggings and burglaries,
take place daily in New York City. Even prostitution could contribute
only a small portion of the $9 billion annual habit of New York
Where does the money come from? From organized
crime activity: the numbers racket, bookmaking, protection rackets,
auto theft, stolen auto parts distribution, prostitution, pornography,
arson-for-hire, and similar occupations. Drug addiction could
not possibly exist without organized crime to provide the means
of financing addiction. Law enforcement authorities estimate that
80% of all crime in New York City is drug-related.
The Royal Institute of International Affairs (RIIA) and its leading
personnel control not only the Far Eastern drug traffic but every
important dirty money operation on the surface of he globe.
A concise summary of the RIIA's [Royal Institute of Affairs] purposes
appears in its de facto founding document, Cecil Rhodes's 1877
bequest. Rhodes, who founded both the gold and diamond mining
empire that still dominates world markets under the aegis of AngloAmerican
and De Beers, and also founded the dope-trading Standard Bank
... Rhodes left his wealth to the Rhodes Trust, administered by
Lord Milner. Milner's collection of Oxford trainees, called the
"Milner Kindergarten," made up most of the 1916 Lloyd
George government, and formed the RIIA at a meeting in Versailles
on May 30, 1919.
[Cecil] Rhodes's 1877 will was:
To establish a trust, to and for the establishment
and promotion and development of a secret society, the true aim
and object whereof shall be the extension of British rule throughout
the world, the perfecting of a system of emigration from the United
Kingdom and the colonization by British subjects of all islands
wherein the means of livelihood are attainable by energy, labor,
and enterprise, and especially the occupation by British settlers
of the entire continent of Africa, the Holy Land, the valley of
the Euphrates, the islands of Cyprus and Candia, the whole of
South America, the islands of the Pacific not heretofore possessed
by Great Britain, the whole of the Malay Archipelago, the seaboard
of China and Japan, the ultimate recovery of the United States
of America as an integral part of the British Empire, the consolidation
of the whole Empire, the inauguration of a system of colonial
representation in the Imperial Parliament which may tend to weld
together the disjointed members of the Empire, and finally, the
foundation of so great a power as to hereafter render wars impossible
and promote the best interests of humanity!
The secret society concept was passed
on by Miler, Rhodes's successor as high commissioner in South
Africa, through Milner's trainees Lionel Curtis (of the Roundtable
group), and Lord Robert Cecil-whose family dates back to the Genoa-Amsterdam
coup against Elizabethan humanism in 1601. Curtis and Cecil both
participated in the May 1919 meeting at Versailles that founded
The Royal Institute of International Affairs
is the secret society.
Much of the heroin entering North America comes through Canada.
This is the estimate of authoritative law enforcement sources.
Virtually everything the reader now knows
about the British Crown Colony of Hong Kong applies to the British
Dominion north of the American border. The idea that Canada is
a nation - in the sense that Americans understand the term - is
the product of low-grade, if persistent, public relations efforts.
Politically and financially, Canada is run straight from the top
by the British monarchy, starting with the Governor-General whom
the Queen appoints, the Privy Council, and including the core
group of Knights of St. John of Jerusalem who control the bulk
of Canadian business.
Canada's role in the drug flow to the
United States is not much different from its role during Prohibition.
Canada transships much of the heroin entering the American market,
because it was created and maintained as a British Dominion on
the northern flank of the United States to carry out precisely
Canada's Official Secrets Act, modeled Great Britain's own 1911
Official Secrets Act ... prevents any publication or public discussion
of what the government - that is, the British-appointed Governor-General
- chooses to regard as a state secret. Given Canada's makeup,
most drug-running, dirty money-laundering, and organized crime
activity, including political terrorism, fall into that category.
Anyone who writes about this in Canada will go to jail immediately
and could, under the law, be executed.
According to high-level Canadian intelligence sources, large quantities
of heroin that reach North America are flown in through Canadian
Pacific Air. There is no "smoking gun" evidence to substantiate
this, but a November 1978 trial in Vancouver revealed evidence
that Canadian Pacific was involved in the smuggling of twenty-two
pounds of cocaine from Hong Kong.
The drugs come in through Canadian Pacific
and then are conduited to points south of the border. Heavily
interlocked with the Western Canada connection is the Bronfman
group, whose corporate center is Seagram's, and whose financial
center is the Trizec group. Since Prohibition, Seagram's has handled
the flow of smuggling into the United States.
Both Seagram's (and its old Prohibition
rum-running partner, Hudson's Bay) are interlocked through a maze
of contacts with all five of the big Canadian chartered banks:
the Bank of Montreal, the Royal Bank of Canada, the Bank of Nova
Scotia, the Toronto Dominion Bank, and the Canadian Imperial Bank
of Commerce. Thus, the dirty money gleaned from the drug trade
is conduited through these banks to points further south: The
banks' offshore centers in the Caribbean, and from there the money
makes its whirlpool round of worldwide laundering.
Canada's Big Five dominate all Canadian
banking as fiercely as the British Big Four-Barclays, National
Westminster, Lloyds, and Midlands-do in Britain. Unlike the United
States, which has a relatively broadly spread base of regional
banking, Canadian and British banking is run from the top by the
institutions named. The Canadian institutions are barely distinguishable
in their current practice from the British buccaneers who plied
the Caribbean during the seventeenth century. Along with the British
banks, which have numerous joint ventures with the Canadians-(for
example, the Royal Bank operates in the Bahamas under the "RoyWest"
cover in a joint venture with National Westminster-b-they are
the core of the dirty money operations offshore of the United
In 1978, the Royal Bank of Canada had
twenty-one affiliates in offshore banking and subsidiaries-more
than any other bank in the world save Barclays Bank.
Royal Bank has the dirtiest reputation of any bank in the Caribbean.
According to authoritative diplomatic sources, the Royal Bank
of Canada directly ordered the Guyanese government to plant marijuana
in order to raise foreign exchange income. In 1976, when Guyana
went flat broke and applied to the International Monetary Fund
for emergency assistance, Royal Bank of Canada officials met with
senior members of the Guyana government. The Royal Bank insisted
that Guyana transform its economy into a "cash crop"
producer before it, or any other major bank, would issue loans.
The Guyanese were desperate and did what they were told. Northwest
Guyana, in consequence, became a major producer of marijuana for
the North American market.
Second in the Caribbean offshore centers
to the Royal Bank is the Bank of Nova Scotia.
... the Bank of Nova Scotia has been the
number-one handler of flight capital out of Caribbean countries,
especially troubled countries such as Jamaica. Apart from funds
fleeing difficult political situations, much, if n pt most, of
all illegal money transfers out of the Caribbean.
... Scotiabank's Jamaican trade is a particularly
filthy bus ness, since it involves shifting funds earned in Jamaica
by local criminals into safe havens. The cash side of the Jamaican
operations, according to law enforcement sources, is done more
with arms than drugs. Planes fly into Jamaica with loads of small
arms, and take loads of marijuana out. The retail side in Jamaica
is arms-selling. The ultimate cash proceeds of the selling chain
are then laundered through Scotiabank.
The Bank of Nova Scotia's role in Canadian
gold markets, is through its own trading operations and its interlock
with the chairman of the second largest Canadian gold trader,
Noranda Mines. According to informed New York gold market sources,
a substantial proportion of Nova Scotia's flight capital operations
are accomplished through illegal purchases of gold by Jamaican
and other nationals.
The Canadian Institute of International Affairs - which has picked
every Canadian foreign minister of this century - is not a Canadian
institution, but the local branch of the British monarchy's most
elite chivalric order. Canada's former Governor-General and chairman
of the CIIA, Roland Michener, was also a Knight of St. John. A
board member of the Italian branch of the Order of St. John, the
Order of St. Lazarus, was a member of the CIIA's board, Henry
R. Jackman. J.J. Jodrey, another board member, was also a Knight
of St. John.
The Order of St. John respects the same
chain of command as Canada's Governor-General and Privy Council:
the Queen of England, who is the titular head of the Order, and
the Queen's cousin, the Duke of Gloucester, who is Grand Prior
of the Order. These men control the finances and logistics of
Canada's economy. Through a series of "cutouts," like
the Bronfman family, they also control much of the drug-running,
the organized crime, and the political terrorism directed against
the United States.
The sinister element that sets the British oligarchy apart from
the popular image of the mafia family is its unshakable belief
that it alone is fit to rule the world-the view reflected in Cecil
Rhodes's 1877 Testament. Their religion is not the Anglican Christianity
they publicly profess, but a hodgepodge of paganism, including
satanic cults such as Theosophy and Rosicrucianism. The central,
syncretic ideology of the oligarchy's inner cult life is the revived
Egyptian drug cult, the myth of Isis and Osiris, the same anti-Christian
cult that ran the Roman Empire. And like the ancient Isis-worshipping
Egyptian dynasties, the British ruling family networks have maintained
power for centuries by keeping the secrets of their intrigues
within the family.
The Cult of Isis, dredged up in modern
format, was the official ideology of leading British politicians,
financiers, and literary figures during the previous century.
The Isis cult also formed the core of Lord Palmerston's Scottish
Rite of Freemasonry. Its great public exponent was the colonial
secretary during the Second Opium War, Edward Bulwer-Lytton, the
author of The Last Days of Pompeii, which first popularized the
Isis cult, and the mentor of Cecil Rhodes's whole generation of
The Royal Institute of International Affairs
was the "secret society" called for in Rhodes's will
and is the body that provides the command structure for the drug
trade. But the Royal Institute itself was founded by an even more
secret group: the "Circle of Initiates... devoted to the
extension of the British Empire," in the description of one
of its historians.' The Circle of Initiates included Lord Milner;
Cecil Rhodes, the founder of Britain's African mining empire;
future prime minister Arthur Balfour; Albert Grey; and Lord Rothschild.
All these men celebrated forms of the
Isis cult. Their woridview was largely designed by Bulwer-Lytton
and his protégé John Ruskin.
The elite of the elite in Britain's secret dynastic life is Her
Majesty's Most Venerable Order of St. John of Jerusalem-the "Christians
who are not really Christians." ... the Knights' prominence
in the centers of the world drug traffic: from the Hongkong and
Shanghai Bank to the Canadian Pacific in Vancouver to Barclays
Bank in London.
[Edward] Bulwer-Lytton directly influenced John Ruskin at Oxford
University and established the lineage that leads-through such
names as Miler and Rhodes-to the present-day Royal Institute of
International Affairs. Ruskin's students included Miler, Rhodes,
Albert Grey, and the future director of research for the RIIA,
Ruskin's inaugural speech at Oxford in
1870, inspired by Buiwer-Lytton, left such an impression on Cecil
Rhodes that he carried a handwritten version of it with him until
[John Ruskin's] speech - which set the
tone for [Cecil] Rhodes's 1877 will - stated in part:
There is a destiny now possible to us
- the highest ever set before a nation, to be accepted or refused.
We are still undegenerate in race; a race mingled of the best
northern blood... We are rich in an inheritance of honour, which
it should be our daily thirst to increase with splendid avarice...
[England] must found colonies as fast and as far as she is able
... seizing every piece of fruitful ground she can set her foot
on, and teaching these her colonists that their ... first aim
is to advance the power of England by land and sea...
The inheritors of the old British East India Company - the same
British monarchy and some of the same banking houses - have launched
the new Opium War just as they did the first: to loot nations,
destroy them, and exalt the power of the Empire.
Today the International Monetary Fund
(IMF) has replaced the British East India Company, and the Soviet
Empire-inheriting the designs of the old Russian oligarchy to
become the "Third and Final Rome"-has negotiated a partnership
in Dope, Inc.
The year 1978 was a watershed for the
operation to turn Ibero-America into a vast drug colony. By then,
Trilateral Commission President Jimmy Carter had set the terms
for the U.S. banking system to emulate the world's biggest dope
banks, or be gobbled up by them.
In October 1979, Paul Adolph Volcker,
the Carter-appointed Federal Reserve chief and intimate of the
Trilateral Commission's David Rockefeller, legalized usury by
forcing interest rates up to 20%. Ibero-America and the whole
developing sector fell hostage to the dope bankers, As national
debt quickly doubled and tripled, the IMF accelerated the process
Nations looking forward to entering the
21st century as developed countries, were forced to cancel their
future. The great industrial projects that were the hope of the
1970s-nuclear energy, water management, ports, and other infrastructural
projects basic to building healthy economies-were dismantled on
orders from the IMF.
The great champions of "free enterprise,"
the followers of Friedrich von Hayek and Milton Friedman who argue
the case for genocide much as Parson Malthus wrote the apologetics
for the barbarities carried out by the British East India Company,
all lauded the not-so-free dictatorship of the IMF over the entire
This same "free enterprise"
dictator, the IMF, accelerated its campaign to legalize the black
market economy, to "free" the narcodollars to infiltrate
national banking systems, and to promote cultivation of "cash
crops"-cannabis, coca, and poppies.
With the debt crisis of the 1980s, came the hopelessness of mass
unemployment, chronic malnutrition, and economic marginalization
of ever-larger sections of the Ibero-American population. This
imposed a climate of cultural pessimism appropriate for the spread
of drug addiction, terrorism, and social chaos.
Although the social scientists and anthropologists
call the current terrorism and demoralization a "sociological
phenomenon," it is the direct result of actions by the international
oligarchic families, actions that are both premeditated and predictable.
Look, for example, at the "1980s Project," a series
of policy papers put out by the New York Council on Foreign Relations,
in which the CFR proudly declared "controlled disintegration
of the world economy is a legitimate objective for the 1980s."
To the oligarchs, nations have become expendable.
The looting operations of the 1980s were
as devastating as British eighteenth-century colonial methods.
Capital flight, engineered collapse in Third World commodity prices,
and brutal devaluations forced nation after nation to give up
development projects and submit to recolonization.
... the United States, under the Kissinger
influence, has time and again supplied the political muscle behind
these policies of Paul Volcker and the IMF...
Chase Manhattan Bank chief David Rockefeller's bid for "mafia
money" started in the mid-1960s, at the same time that Citibank
cranked up its "international personal banking" group
to manage illegal capital movements, and Bank of America bankrolled
the Banco Ambrosiano in Italy. But not until David Rockefeller
bought himself a U.S. administration in 1976, as the ancient European
fondi installed themselves in Wall Street, did narcotics traffic
start to become serious business for the world's biggest banks.
Almost at the moment the Jimmy Carter administration took office,
the Ibero-American dope traffic exploded into the big time, producing
havoc in the distribution of cash throughout the Federal Reserve
System by the end of 1978. After a mere two years of Jimmy Carter's
White House, an extra $3.3 billion per year in cold cash was piling
up in the Florida offices of the Federal Reserve, the $13 billion
dope traffic had become Florida's largest industry, and American
narcotics consumption had jumped to $100 billion per year EIR's
[Executive Intelligence Report] estimates, perhaps triple the
level of the early 1970s.
... Through G. William Miller's Treasury
and Paul Voicker's Federal Reserve, the United States backed the
International Monetary Fund's campaign to force Ibero-America
to produce dope to pay its debts, and with redoubled energy after
the 1979 oil price increase threw Third World debtors into penury.
Volcker had been Rockefeller's vice president
for strategic planning at the time the "mafia money"
memoranda circulated in 1966, and Chase went begging to the likes
of Y.K. Pao and the HongShang Bank for a cut in the Hong Kong
dirty money pool. Now the Trilateral Commission, the Rockefeller
front organization which had nominated its mascot Jimmy Carter
for the presidency, hit Ibero-America from all sides. Chase's
international advisory board Chairman Henry Kissinger, also the
Trilateral Commission's chairman, set in motion the Caribbean
policy which culminated in the 1980 marijuana coup in Jamaica,
with the backing of Trilateral Commission member Cyrus Vance's
Department of State.
The International Monetary Fund is the instrument by which the
United States was forestalled from pursuing Franklin Roosevelt's
desire for global industrial development following the Second
World War. Lord Keynes conceived it as an expansion of the Bank
for International Settlements, founded in 1931 by the same representatives
of the fondi whose descendants now sit on the boards of the Assicurazioni
Generali and the Riunione Adriatica di Sicurtà. And the
Bank for International Settlements was conceived in 1922 in Genoa
at the Palazzo San Giorgio, the ancient headquarters of the Doria
and Giustinian banking operation, the Cassa San Giorgio. The Genoese
and their Venetian partners, militarily insecure in the northern
Italy of the late eighteenth century, created modern Switzerland
as a bank with an army attached ... Switzerland remains the fondi's
strongbox. There the Bank for International Settlements has been
headquartered since its founding in 1930.
The great family fondi which stand behind
the BIS supervise the traffic in narcotics at the ground level.
By 1978, the dope economy was the stated policy of the IMF. John
Holdson, a senior official for Latin America in the World Bank's
International Trade and Monetary Flows department, told Executive
Intelligence Review, "I know the coca industry there is highly
advantageous to producers. In fact, from their point of view,
they simply couldn't find a better product. Its advantages are
that no elaborate technology is required, no hybrid seeds, and
land and climate are perfect."
A Colombia specialist at the International
Monetary Fund put it this way: "From an economic viewpoint,
marijuana is just a crop, like any other. It brings in foreign
exchange, and provides income for the peasants. Legality is a
relative concept. In a few years, marijuana may become legal anyway."
An international banker in New York explained
in 1978, "Coffee prices are simply too unstable, always fluctuating
on the world market, you know. Drugs, on the other hand, provide
a stable source of income at all times. With coffee prices like
they are, Colombia will never get its development going, can't
make plans, like the oil producers can. I happen to know that
the World Bank has been pressuring some Latin American countries
to find some way of statistically accounting for their contraband
In an interview with EIR, the former foreign
minister of Guyana, Frederick Wills, explained, "The countries
hope that, by getting the IMF seal of approval, this will open
the gates for credit from other countries and private banks. But
the IMF seal of approval requires successful acceptance of the
And since you didn't succeed, the flow
of funds from money markets and banks is dried up. This means
that, first of all, the government ministers started to think,
'What export drive could we have which could realize a quick cash
flow, to stem this balance of payments gap?' There is only one
commodity that satisfies that requirement: dope, heroin, marijuana.
"In several countries," Wills
continued, "officials from the IMF and the Bretton Woods
system would come down and say 'your future lies in agriculture.'
But in agriculture you have the following problems: High technology
is expensive, that increases your import bill. So you have to
use the 'appropriate technology' that you do have to produce those
goods which can satisfy your local market and a bit for export.
You cannot compete with the great agricultural countries like
Argentina, Canada, the United States, and Australia. Therefore,
the kind of crop you have to produce for export has to be one
in which you have the edge and they don't, and that's dope."
After four years of International Monetary Fund control, Jamaica's
marijuana income is conservatively estimated at $3.5 billion per
year, more than the country's Gross National Product in 1980,
when the International Monetary Fund put Edward Seaga into office.
On the CBS-TV program "Face the Nation" on November
23, 1980, [Jamaican Prime Minister Edward] Seaga stated that marijuana
"has almost been the lifeline economically to providing dollars
and foreign exchange" to Jamaica. Shortly before, had told
the Washington Post:
Regardless of whether we want it or not,
the industry as such is here to stay. It is just not possible
for it to be wiped out, and if it is here to stay, then we have
to make up our mind from that point as to how to best deal with
it... the question of legalizing it so as to bring the flow of
several hundred million dollars in this parallel market through
... the Kissinger group in the State Department
and the International Monetary Fund installed Seaga for the explicit
purpose of maximizing Jamaica's dope revenue.
[Under Jamaican Prime Minister Edward Seaga] the entire basis
of the [Jamaican] economy shifted to pot [in 1984] ... Canada's
Bank of Nova Scotia, later cited by the President's Commission
on Organized Crime as a major dirty money conduit, handled the
transfer of cash from marijuana sales, and Mocatta Metals in New
York City provided precious metals for cash-laundering purposes.
The Report of [Henry] Kissinger's National Bipartisan Commission
on Central America, released January 21, 1984, is an undisguised
formula for gunboat diplomacy on behalf of Dope, Inc.
... according to the Kissinger report,
U.S. muscle will enforce the Hong Kong model upon the Caribbean.
The economy of the region is to be "restructured" to
fit the model of dirty money laundromats like "Hong Kong,
Singapore, and others." Private sector "initiative"
must replace government "as the engine of growth." United
Brands - whose ships carried a substantial portion of the cocaine
reaching the U.S.A. during the 1970s ... is cited as a "model
employer and model citizen".
Peru, another early victim of the IMF, meanwhile lost 70% of its
national economy to the so-called underground since accepting
IMF conditionalities in 1976. General Francisco Morales Bermüdez,
whose coup against President Velasco began Peru's descent into
the financial underworld, complied with IMF demands in 1979 to
open up Peru's interior to "foreign investment," as
a means of attracting capital to the bankrupt country; the result
was that the international narcotics traffic gained access to
huge tracts of land for coca leaf production. Peru's Gross National
Product is only $20 billion; $6 billion of narcotics revenues
(a tiny fraction of what Peruvian cocaine sells for abroad) make
narcotics the dominant industry in the national economy.
Since the 1858 Sepoy Rebellion gave a bad name to Britain's East
India Company, the Company's sponsors have preferred to spin off
the dirtier side of its operations into separable entities which
may be disowned when necessary. For Asia, the new incarnation
of "John Company" became the Hongkong and Shanghai Bank,
still the central bank for the world opium traffic. For Ibero-America,
it became the New Orleans and Boston-based United Fruit Company.
United Fruit, later United Brands, was believed by American intelligence
officials to be the principal mechanism through which cocaine
was transported into the United States during the 1970s.
The sometimes bewildering change of faces
at United Fruit from the old, odd alliance of New Orleans gangsters
and Boston Brahmins described in the historical section of this
book, to the Max Fisher-Carl Lindner combination now at the helm-does
not really disguise a long-term continuity of operations.
It represents a bridge between apparently
respectable finance and a ground-level ability to conduct coups
d'etat, arrange political assassinations, farm and market large
quantities of narcotics, and launder the resulting cash flow back
into the apparently respectable channels of banking. The corporate
form of United Fruit as such is a "black box" through
which the complex requirements of this activity may be brought
[Carl] Lindner took over United Brands in February 1975, when
its chairman Eli Black walked out of his 44th-floor office window
in New York City for unexplained reasons. Within two months, Detroit
"ex-"mobster Max Fisher was the new acting chairman
of the company; Lindner, Fisher and their immediate associates
had garnered 48% of the UB stock. Fisher's appointment was sponsored
by two men: So! Linowitz and Donald R. Gant, a Goldman Sachs partner
and Henry Kissinger associate. Linowitz, who later became the
Carter administration's special envoy for Panama Canal treaty
negotiations, as well as the principal promoter of the dope economy
in the Caribbean, was a -director as well of Marine Midland Bank,
instrumental in promoting Marine Midland's merger with the HongShang.
It is hard to further blacken United Brands'
reputation in Ibero-America. Its role in the 1954 Castillo Armas
coup in Guatemala, where United Brands financed an expeditionary
force to overthrow the Arbenz government when it tried to expropriate
United Fruit Company lands, is well documented.