14 February 2005: Catherine Austin Fitts, libertarian

Thanks to several friendly readers who forwarded the new Catherine Austin Fitts piece from FTW, whose introductory remarks I commented upon in my previous entry. It is also available online:

http://www.axisoflogic.com/artman/publish/article_15560.shtml

It confirmed my previous opinions. And more. So much more, that I've been stymied for a couple days thinking about what to say. I'm afraid that I will have to offer a somewhat rough and rambling diatribe, which I hope will illustrate where I'm coming from. It's not that I don't agree with Fitts' general premise that there are limited hangouts in the air which are aimed at progressives and are designed to lead them into supporting the very powers and entities that they believe themselves to be opposing. But I couldn't be more vehemently opposed to her on the specifics.

It's no surprise that Perkins' book, Economic Hit Men, falls short of telling the whole story, and while I have not yet read it, I had already noticed the "there is no higher conspiracy" line in reviews and excerpts. However, while it is fair to dispute the idea that everything going wrong in the world is generally systemic, Fitts proceeds to swing the pendulum to the other extreme, and spends the rest of the piece spelling out what is basically a very familiar kind of apologism for neoliberal dogma that is frequently constructed out of conspiracy theory ó that there's nothing wrong with "free markets" and other received wisdoms on economics, and instead all of our big problems and injustices are the result of discrete conspiracies that bend the rules and "unfairly" manipulate the markets using abusive "big government" powers. Fitts goes on to chide progressives for falling into the supposed trap of questioning free market dogma and fetishes of property and ownership. She uses the lowest and most malevolent dirty trick in the current arsenal of neoliberals and libertarians, the crass assertion that the centralizing police state powers and runaway insider looting characterizing the government since 9/11 are part and parcel of any activist / interventionist government policy in general.

Fitts chooses to single out the ideas of Marjorie Kelly, who questions current accepted wisdom about the economic power of corporate stockholders and corporate 'personhood' in The Divine Right of Capital:

"Traditionally, the faith of the US working class in democracy has been one
of the most powerful supports for democracy worldwide. It is not enough to
bankrupt the American middle class and the American government. The current
effort to move to more centrally controlled governance also requires
removing this faith that underpins support for global democracy. Part and
parcel of doing so is establishing popular support for the notion that the
economic supports for democracy - sound money, open and transparent markets
and government, and access to equity - are somehow bad."

Fitts observes how Kelly moves in elite circles like Harvard, with the insinuation that those who question neoliberal dogma are really shills for the elite, and that radical free marketeers are actually the rebels (ignoring the fact that Harvard itself has been one of the main sewer pipes for neoliberal propaganda). A more accurate assessment, I think, is that Kelly is accepted by the establishment because her approach is so restrained and watered-down, only touching on a few issues of economic ownership and control, and tending also towards the red herring of "democratizing the corporation". And the fact is that Kelly is actually quite obsequious towards "free market" dogma. It is Fitts who instead seems to display some dogmatism.

Fitts then recommends an article by Anne Williamson, 'Shilling for a New World Order': http://tinyurl.com/36cw2

This is revealing indeed. Williamson, a reporter who has worked for the Wall Street Journal, New York Times, and WorldNet Daily (doesn't that sound great already?), is a devotee of libertarian Austrian School economics. This includes the likes of Ludwig von Mises, Friedrich von Hayek, and others associated with the notorious Mont Pelerin Society, such as monetarist Milton Friedman and his "Chicago Boys" who designed the privatization and free market policies of Chile's Pinochet dictatorship in the 70s and 80s, with legendary results. As a matter of fact, Williamson has given guest lectures at the libertarian Mises institute as a representative of Sanders Research.

What is missing from Williamson's portrayal of things is that "laissez-faire" and "free trade" nostrums of the sort promoted by the Austrian School radicals have always historically been a hoax, and therefore it is no surprise to find that the elites who promote free markets engage in all sorts of manipulations of those markets behind the scenes. This doesn't prove that "pure" free markets which "follow the fules" are the answer to our troubles, unless one subscribes to the base fallacy of using a negative to prove a postive, or follows the demagogery established by the likes of von Hayek a half-century ago, in which any form of dirigist policy or substantial economic intervention or planning is presumptuously lumped together with "fascism" or "totalitarianism". One need only remember that the Austrians are really just a variant of the British "free trade" school established by Adam Smith, David Ricardo, James Mill, et al, who were all, paradoxically, nurtured to fame under the wing of the British East India Company and it's circles of intellectual whores. That's right, much of the basis of neoliberal laissez-faire dogma ORIGINATED in the deepest historical pit of "Economic Hit Men", and thus represents the farthest thing from their true enemy.

Another matter where Williamson agrees with the Austrians and Adam Smith is the oligarchal agenda of keeping the power of money and credit policy out of the hands of politically accountable government. The great libertarian fetish in this case is either the "gold standard" or free-market banking:

"What you want is a private banking system. You don't really want the government in it. The government should be responsible for fulfilling the biblical edict of "ye shall have honest weights and measures." Government should set the standards, and then let the private bankers compete for market share within the confines of the gold standard. We, the customers of those banks, should be responsible to being attentive to our banks' business and bottom line. And as the banks compete against one another, under the natural restrictions of the gold standard, honesty and sound banking are rewarded by an increasing market share." [http://www.freebooter.com/articles/other-article-1.asp]

With the biblical (mis-)reference in mind, let me digress for a moment with some apt comments from a reviewer of Thomas Frank's Whatís the Matter with Kansas?:

"Developing his argument in One Market Under God that free-market ideology has morphed into theology, he argues that the new rightís unappeasable hostility to liberalism can be put down to a deeper opposition to artifice. According to this line of thinking, distant experts, obscurantist artists, and self-important intellectuals all interfere with the natural order of things that, like the invisible hand of the market itself, is ordained by the Almighty. And above all, anything that smacks of state intervention is a sure sign of hubris, the handiwork of know-it-all liberal elites tampering with the divine. ... To understand the great backlash of the American culture war, critics would do better to probe the historical fate of evangelicalism itself, whose blind optimism, free-market utopianism, and obsession with "leadership" today verges on the occult ó a magical quality it shares with much of the New Age left."
http://www.portlandphoenix.com/books/other_stories/documents/03997120.asp

Opposing the "satanic" influence of state intervention on behalf of the General Welfare is exactly the intent of those who portray the gold standard or "free market money" as a biblically-commanded natural order, contrasted with the luciferian evil of "paper fiat money". Libertarians of this type always present straw man arguments and blur the distinction between debt-based fiat currency issued by a privately controlled central bank (as with our present Federal Reserve System), and debt-free fiat currency issued by the government (such as Lincoln's Greenbacks); they also make the false claim that any expansionist credit policy is necessarily inflationary. This is of more than trivial significance as we head for an economic crash and the attendant danger of oligarchal demands of brutal fiscal austerity, of the same type which helped the Nazis come to power in depression-ravaged Germany.

Fitts says we need to "find real solutions effective in decentralizing our financial systems." If the neoliberal magic word "decentralizing" is the one true path, then I suppose nationalizing the Federal Reserve, a proposal advocated by a very wide array of monetary reform advocates, might be a non-issue? Well, that just sounds way too socialist anyway, doesn't it. What kind of mindset about monetary reform are Fitts and FTW intending to encourage with their promotion of "precious metals" fever and communitarian localism? Does Fitts' vision of the usefulness of 9/11 Truth represent activism or non-activism? We could use some more details.

"The illumination of the truth of 9/11, however, could change most Americans'
paradigms and transactions in powerful ways. It could certainly fuel an
increase in demand for precious metals, alternative energy and local
self-sufficiency."

More of the same communitarian snake oil. It is not hard to find the institutions and agencies of the Economic Hit Men themselves promoting this kind of thinking. Take for example the ideas of David Korten, a member of Club of Rome and former Ford Foundation official. Or the radical decentralization rhetoric of Edward Goldsmith, who funds his International Forum on Globalization front-group with the fortune of his late brother, the right-wing corporate raider Sir James Goldsmith.

It should be hardly surprising that Williamson frantically demonizes FDR, accusing his administration of launching a "socialist revolution" against the US. Just the sort of rhetoric one might associate with the Wall Street plotters of the failed 1934 anti-FDR, whose ideology is carried on in the current, symbolically important effort to wreck Social Security, being led by the libertarian Cato Institute and Economic Hit Men like George Shultz. I have to say, the timing of Fitts' latest uptempo rant for the miracles of free markets and the joys of a nation of stock-jobbers and decentralized community corporations is a bit strange, given current events.

The truth is, however, that I am only feigning surprise. Fitts' connection to Global Business Network, a driving force behind the "New Economy" fad and the cyber-libertarian Wired Magazine. After all, isn't it easy to smell a bit of "California Ideology" behind some of Fitts' ideas, like finding the promised land in a free market of digitally traded, Internet-based community currencies? That's soooo Wired! Uh, I mean, tired. Hey, remember the "Long Boom"?

Time for a tangent. An interesting GBN connection shows up in an article by Fitts from 2002, entitled, "What's Up Withe the Black Budget?", where she describes her encounter with supposed inside knowledge of aliens and UFOs:

"In 1998, I was approached by John Peterson, head of the Arlington Institute, a small high quality military think tank in Washington, DC. I had gotten to know John through Global Business Network and had been impressed by his intelligence, effectiveness and compassion. John asked me to help him with a high level strategic plan Arlington was planning to undertake for the Undersecretary of the Navy.

"At the time I was the target of an intense smear campaign that would lead the normal person to assume that I would be in jail shortly or worse. John explained that the Navy understood that it was all politics ---- they did not care.

"I met with a group of high level people in the military in the process --- including the Undersecretary. According to John, the purpose of the plan --- discussed in front of several military or retired military officers and former government officials --- was to help the Navy adjust their operations for a world in which it was commonly known that aliens exist and live among us.

"When John explained this purpose to me, I explained that I did not know that aliens existed and lived among us. John asked me if I would like to meet some aliens. For the only time in my life, I declined an opportunity to learn about something important. I was concerned that my efforts with Arlington could boomerang and be connected with the smear campaign and the effects that I was managing. I regret that decision. At John's suggestion I started to read books on the topic and read about 25 books over the next year on the alien question, the black budget, and alien technology.

"I had to drop from the project due to the need to attend to litigation and the physical harassment and surveillance of me and some of the people helping me. This process ---which turned out to be incredibly time consuming --- I now believe was connected with the black budget/slush fund activitiesconnected with FHA and Ginnie Mae at HUD. (See, "The Myth of the Rule of Law") John then asked me if I would join the board of the Arlington Institute.

"When I attended one of my first meetings, I joined in discussion with about 10 people which included James Woolsey, former head of the CIA in the Clinton Administration, Napier Collyns, founder of Global Business Network and former senior Shell executive, Joe Firmage, John, and other members of the Arlington board. The main topic of discussion was whether or not the major project for the coming year should be a white paper on how to help the American people adjust to aliens existing andliving among us. I said nothing -- just listened. Not that long after, I dropped from the board due to the continued demands related to litigation with the Department of Justice and their informant."
[http://www.scoop.co.nz/mason/stories/HL0209/S00126.htm]

I won't venture into questions about UFOs and aliens at the moment. But my first observation is, how does one get invited to sit down in such a sensitive meeting with James Woolsey while simultaneously being a persecuted "enemy of the state"? At this time, Woolsey was active with PNAC and the like -- he was no outsider or dark horse. Second observation is that the Arlington Institute and James Woolsey connect directly to a flurry of 'UFO' related activity in the 90s that was orchestrated and funded by Laurance Rockefeller. If there was untainted and non-agenda-driven information to be found on this subject, this is the last place I'd look for it. A rather credulous view can be found here:
http://www.paraview.com/huyghe/huyghe_excerpt.htm

Third observation: not only is Woolsey still on the board of Arlington, but there is also an interesting Pentagon insider, Owen Wormser. His bio states:

"In December 2003, Mr. Wormser left a political appointment position in
the Department of Defense. In his appointment capacity his responsibilities
encompassed policy and program formulation, oversight, and implementation
actions effecting: DoD's use of the electromagnetic spectrum; space
control, space cooperation, and space-based operations to include precision
navigation and timing matters; Special Access Program information integration;
Unified Command Structure command & control, national security and
continuity of government command & control extending from the President
to appropriate command authorities; and finally, DoD's development,
exploitation, and deployment of wireless technologies as well as the associated
security architectures."
http://www.arlingtoninstitute.org/about_tai/bod_04.asp

Dear reader, did you catch the part about "Special Access Program Information Integration"? If that doesn't ring a bell, a web search for "special access program" and "black budget" would be worthwhile. Perhaps rather than lecture errant progressives with free market nostrums, Fitts could be of more immediate help by ringing up her pal John Petersen and get the latest inside scoop from Wormser. After all, since she deigns to tell us all the great secrets of the black budget, she must be very intrigued to have such in-the-know types running in her immediate circles. And rather than use 9/11 "illumination" to herd activists into run-for-the-hills corporate communitarian fantasies, we could get down to some more nitty-gritty if Fitts could elicit some leads from 9/11 suspect extraordinaire, Woolsey. I wonder, are they still on cordial terms?

Or, perhaps Woolsey is too busy these days. After all, he's running the premier warhawk think-tank, Committee on the Present Danger alongside Economic Hit Man George Shultz. Despite serving on the Arlington Institute board together, I couldn't imagine that he's on speaking terms with Petersen, since the latter is busy running the Center for Human Emergence, a fluffy "new consciousness" type of outfit whose vision is to become a "Turquoise collective intelligence entity, with the capacity to affect significant transformation for the enrichment and well-being of all" and "initiating action for global transformation... to create indigenous ownership and commitment in centers across the globe, and to integrate and align a coalition of organizations, communities and thinkers. It will utilize a synthesis of state-of-the art knowledge and technologies, to help enrich humanity for all." The founder is Don Beck, a consultant to Tony Blair on "Third Way" policy. Surely, assisting the evolution of humanity to the next level of Beck's "spiral dynamics" is as far as one could possibly get from the intellectual ground zero of "World War IV".

http://www.humanemergence.org/organization.html

But then, maybe it's not a great leap. Take Woolsey, speaking a few years back:

"The United States cannot afford to wait for the next energy crisis to marshal its intellectual and industrial resources.... Our growing dependence on increasingly scarce Middle Eastern oil is a fool's gameóthere is no way for the rest of the world to win. Our losses may come suddenly through war, steadily through price increases, agonizingly through developing-nation poverty, relentlessly through climate changeóor through all of the above."

Which is not such a different mood than new age fascist Barbara Marx Hubbard, quoted on the CHE site:

ìIt's natural that an intelligent species would be successful enough to hit the limits of its own growth without knowing it was going to do so. It's natural that through our successes we have overindustrialized, overpopulated, polluted and used up our environment. It may be that this whole predicament is a natural phenomenon and that this intelligent species is now getting a signal : evolve or die.î

Which is the same thing Mike Ruppert has to say: "I' m firmly convinced that what we are now faced with is a choice offered to us by our creator. Either evolve or perish."

I'm not grasping for connections here or fishing for conspiracies. I started out talking about neoliberal market fundamentalism and I wound up with "new age" greens. That may seem to be discontinuous, but in fact the shared underlying philosophy at play is the notion that the structure of society should be determined by an evolutionary "emergence" of self-organization or spontaneous order. This is what binds Adam Smith's pantheistic "hidden hand" that creates "publick benefits" out of agglomerated "private vices", with the evolutionary / emergent "systems philosophy" that underlies the "new paradigm" set.

Both GBN and Arlington Institute specialize in futurist forecasting. GBN was co-founded by veterans of Royal Dutch Shell's 'scenario planning' division, including former exec Napier Collyns who is also with Arlington institute. GBN's roots also go back to the Club of Rome's world models via member Donella Meadows, which in turn were spawned in part by the famous Cybernetics project launched back in 1946 by former OSS psychological warfare expert and later new age pioneer Gregory Bateson, under the auspices of the MK-ULTRA program. Bateson's influence found its way directly to GBN through his close friend, GBN co-founder Stewart Brand. The Cybernetics project, combined with 'General Evolution Theory', gave rise to today's systems philosophy. Friedrich von Hayek, prophet of modern free-trade globalization, is considered by many to be a proto-systems theorist, along with other Austrian School economists, because of his philosophy of "spontaneous order" and evolutionary epistemology. Some feel the same way about Adam Smith being a precursor to "emergence" theory. Does this make him a proto-new ager? That's David Korten's line, more or less.

GBN clients have included Ford, Bechtel, Shell, Morgan Stanley, Hewlett Packard, Swedbank, Dupont, Federal Express, along with government clients such as DARPA. Shell's scenario planning, founded by Pierre Wack, a disciple of the famous mystic Gurdjieff, first got on the map when they made a remarkable prediction in 1972 that there would soon be an energy crisis. Cynics would note that Shell executives attended a secret Bilderberg meeting the following year which actually planned that energy "crisis", according to a 1991 documented exposÈ by German economist William Engdahl. Perhaps something about the real tricks of the trade in mystical prognostication is revealed in the title of one of Gurdjieff's books, Meetings with Remarkable Men.

In any case, scenario planning and forecasting have since become fixtures in modern management theory as well as postmodern notions of social engineering. Another such group, which also includes John Petersen as a director, is the World Future Society. Others on the roster include Harlan Cleveland, Barbara Marx Hubbard, former World Bank president and depopulation fanatic Robert S. McNamara, futurists John Naisbitt and Alvin and Heidi Toffler (of Newt Gingrich fame), Club of Rome global governance consultant Yehezkel Dror, and Rockfeller crony Maurice Strong.
http://www.wfs.org/faq.htm

This is all I have time for at the moment. Suffice to say, I hope, that I am less than convinced by Fitts' conviction that those who are questioning received myths about neoliberalism, fundamentalist "property rights", and the supposed evils of government intervention and conscious planning of economic general welfare, are somehow dupes of the establishment. Oh, quite the contrary, I think.....

Related links and random notes:

Friedrich von Hayek - Fascism didn't Die With Hitler by Jeffrey Steinberg
http://members.tripod.com/~american_almanac/vonhayek.htm

"Sound money" gold advocates tend not to mention that the same elite interests that were behind the Federal Reserve System were ALSO the same ones who led the fight to kill the fiat Greenback and force in the gold standard several decades earlier. A useful view of that era from a spirited Greenback supporter, which shows the relationship with the British "free trade" system:
http://www.mail-archive.com/ctrl@listserv.aol.com/msg11638.html

Some of my previous research notes on GBN, concerning their "global warming" scenario planning for the Pentagon's Andrew "Yoda" Marshall:
http://www.questionsquestions.net/docs04/pentagon_gw.html

Interestingly, one GBN member is free-market fundamentalist Daniel Yergin, who seems to be the designated 'bad guy' in a lot of 'peak oil' writing. This might warrant a closer look:
http://www.gbn.com/PersonBioDisplayServlet.srv?pi=22060

Stewart Brand and Maurice Strong
http://www.mikaelnyberg.nu/english/greut_05.html

The Californian Ideology
http://www.dinicola.it/socinfo/california.htm

Wired and the English Ideology
http://www.culturewars.com/CultureWars/Archives/cw_recent/Wired.html

Adam Smith to Austrian Economics to complexity theory
http://www.fff.org/freedom/1199g.asp

Ervin Laszlo: New Concepts of Matter, Life and Mind
http://www.physlink.com/Education/essay_laszlo.cfm

The Attempted Coup Against FDR, by Barbara LaMonica
http://www.webcom.com/ctka/pr399-fdr.html

A longer treatment, a little more biased:
Franklin Delano Roosevelt vs. the Banks: Morgan's Fascist Plot, and How It Was Defeated by L. Wolfe
http://members.tripod.com/~american_almanac/morgan1.htm
http://members.tripod.com/~american_almanac/morgan2.htm
http://members.tripod.com/~american_almanac/morgan3.htm
http://members.tripod.com/~american_almanac/morgan4.htm


FDR wasn't a saint or the end-all be-all... but he did step on some toes and make some decisions that made him a "traitor to his class". His expansionist, works-project recovery strategies may have relevance in our current situation; of course this is not an unusual viewpoint. But any such moves are obviously not desired by the current elites. Kurt Nimmo recently wrote a critique of Ruppert in which he noted his libertarian afflictions and dousing of activism, but then went on to trash FDR following the lead of New Left revisionist Howard Zinn. He didn't seem to notice that FTW has often taken the same tack. And Zinn's lack of activist ardor on 9/11 is an order of magnitude worse, and he is justly criticized as a capitulator to neoliberal demonization of "big government". He draws heavily upon the revisionist tradition of Charles Beard, who portrayed the Federalist constitutional founders and orignators of the lost US tradtion of protectionism and state-assisted development as nothing but self-interested greedy plutocrats. This was substantially challenged and debunked by later historians like Forrest McDonald (which was a factor in giving credibility to the postwar "conservative revolution" in laying claim to America's traditions and also the portrayal of progressive historical critics as biased axe-grinders). It just so happens that Charles Beard was a colleague of George Shultz' father. Hmmm.
http://www.larouchepub.com/other/2004/site_packages/econ_hitmen/3148shultz1.html
citation for Beard & Birl Shultz book here:
http://www.clas.ufl.edu/users/dasmith/SmithIGs.htm