March 03, 2016
A Unified Europe - Born In the USA
The former Bank of England head
said this week that the "depression" in Europe,
"has happened almost as a deliberate
act of policy".
Specifically, King said that the
formation of the European Union has doomed Europe to economic
He points out that Greece is
"a depression deeper than the United
States experienced in the 1930s".
The depths of
Credit: RBS economics/RBS
Moreover - as Martin Armstrong
warned for decades - letting countries like Greece join he Euro
without first structurally adjusting their debts was a recipe for
So it is fascinating to learn that the
U.S. was largely behind the creation of both the European Union and
The European Union - Funded By the CIA
Professor of International Security at
the University of Warwick Richard J. Aldrich reviewed
available historical documents, and concludes that the European
largely an American project:
US officials trying to rebuild and
stabilize postwar Europe worked from the assumption that it
required rapid unification, perhaps leading to a United States
The encouragement of European
unification, one of the most consistent components of Harry S.
Truman's foreign policy, was even more strongly emphasized under
his successor General Dwight D. Eisenhower.
Moreover, under both Truman and
Eisenhower, US policymakers conceived of European unification
not only as an important end in itself, but also as a way to
solve the German problem.'
One of the most interesting US
covert operations in postwar Europe was the funding of the
The European Movement was an
umbrella organization which led a prestigious, if disparate,
group of organizations urging rapid unification in Europe,
focusing their efforts upon the Council of Europe, and counting
Winston Churchill, Paul-Henri Spaak, Konrad Adenauer, Leon Blum
and Alcide de Gasperi as its five Presidents of Honor.
The discreet injection of over three
million dollars between 1949 and 1960, mostly from US government
sources, was central to efforts to drum up mass support for the
Schuman Plan, the European Defence Community and a European
Assembly with sovereign powers.
This covert contribution never
formed less than half the European Movement's budget and, after
1952, probably two-thirds.
The conduit for American assistance
was the American Committee on United Europe (ACUE), directed by
senior figures from the American intelligence community.
This body was organized in the early
Summer of 1948 by Allen Welsh Dulles, then heading a committee
reviewing the organization of the Central Intelligence Agency
(CIA) on behalf of the National Security Council (NSC), and also
by William J. Donovan, former head of the wartime Office of
Strategic Services (OSS -
to the CIA)
The International Organizations
Division [a newly-established branch of the CIA] was also
involved in the fourth type of US covert operation - provoking
dissonance in the satellite states.
This effort was channeled through
the National Committee for a Free Europe, later known as the
Free Europe Committee, which controlled Radio Free Europe and
Much of the work, done with the help
of irascible exile groups under the Assembly of Captive European
Nations (ACEN), was coordinated by the CIA's burgeoning Munich
station, which also gave aid to resistance groups within eastern
The ACUE and its short-lived
predecessor were only two of many 'American' and 'Free'
committees established during 1948 and 1949.
Well-documented examples include the
National Committee for a Free Europe (later the Free Europe
Committee) and the Free Asia Committee (later the Asia
The Free Europe Committee, formed in 1948 by the
retired diplomat Joseph E. Grew at Kennan's request, worked
closely with the CIA to maintain contact between exile groups in
the West and the Eastern bloc.
Their campaign 'to keep alive the
hope of liberation in Eastern Europe', was launched publicly in
1949 by the recently retired American military governor in
Germany, General Lucius D. Clay.
The initial membership included many
senior government figures such as the former Assistant Secretary
of State, Adolphe Berle, Allen Dulles and ex-OSS personnel such
as Frederic R. Dolbeare.
The Free Europe Committee purported
to draw its resources from private subscriptions and various
foundations, but in reality the majority of its funds came from
the US government through channels managed by the CIA.
The United States persuaded Britain
and France to give the exile groups associate membership of the
Council of Europe.
A year later the White House
endorsed State Department plans to accelerate these efforts.
Outlining their proposals in a special guidance paper entitled
'The Concept of Europe', they admitted their concern that the
main propaganda effort in the East lacked the 'positive
qualities which are necessary to arouse nations'.
Several studies had been made in an
attempt to find a positive concept and the themes of 'European
Unity' and 'Return to Europe' might rectify this problem. Its
'solely European' nature ensured that it could not be 'dismissed
as another maneuver of "American imperialism".'
Unification was officially a central
component of US policy - Congress had stipulated it as a
condition of further Marshall Plan aid
The ACUE's work in continental
Europe during the early 1950s also focused increasingly upon
propaganda and mass action
In 1951, the majority of ACUE funds
for Europe were employed on a new venture - a unity campaign
amongst European youth.
Between 1951 and 1956 the European
Movement organized over 2,000 rallies and festivals on the
continent, particularly in Germany where they received the help
of the US army. One of the additional advantages of deploying
American funds on the large youth programs was that it helped to
disguise the extent to which the European Movement was dependent
upon American funds.
In May 1952 Spaak decided that funds
from American sources that had previously been used in the
ordinary budget of the European Movement would now be diverted
for use in the 'Special Budgets' used to support their growing
range of new programs.
This disguised their source and
avoided any accusations of American dependency. Again, in
November 1953, Baron Boel, the treasurer of the European
Movement, explained that it was essential to avoid a situation
where opponents of European unity could accuse them of being an
For this reason,
quite acceptable for the European Youth Campaign and certain
restricted activities, could not be used for the normal running
of the Movement'.
Through the use of 'Special
Budgets', the large sums from American sources did not show up
in the ordinary budget of the European Movement."
As early as 1949, at the behest of
Allen Dulles, the Ford Foundation was cooperating with the CIA
on a number of European programs.
By 1950, the ACUE and the Ford
Foundation were coordinating their efforts to support
federalism. Moreover, by the mid-1950s, the senior figures who
directed both overt and covert American support were
By 1953 both John J. McCloy and
Shepard Stone, who had been instrumental in arranging for
substantial covert government funds for the European Youth
Campaign, were both on the board of trustees of the Ford
McCloy was also a director of the
Rockefeller Foundation. By 1955, McCloy had become chairman of
the Ford Foundation, while serving as chairman of the Council on
Simultaneously, the same circle,
including Retinger, McCloy, Allen Dulles, Harriman, David
Rockefeller, Jackson and Bedell Smith were busy creating
the Bilderberg Group, yet another organization that bridged the
narrowing gaps between government, private and public
organizations and between overt and covert on both sides of the
Most ACUE funds originated with the
Mutual Security Agency [an American
agency created by Congress] funds were also used to support the
European Movement, indeed the Mutual Security Act of 1951
explicitly stated that its resources were to be used 'to further
encourage the economic and political federation of Europe'.
A North American Created the Euro
guy - Robert Mundell - is the
father of the Euro:
Born in Canada, Mundell taught at the
University of Chicago for 7 years, and has since taught at Columbia
University in New York for more 42 years.*
NOTE: Mundell is Canadian.
But having taught at American Universities for more than 50 years,
we're treating him as an honorary American. In any event, he created
the Euro while at Columbia. In any event, what's striking is that a
North American - a not a European - created the Eurozone's currency.
But didn't Mundell create the Euro to
Not according to Guardian, Independent
and BBC investigative journalist Greg Palast, who
explained in his book Vulture's Picnic:
Who spawned this cruel little
I called its parent, Professor
Robert Mundell. Mundell is known as the Father of the Euro. The
Euro is often spoken of as a means to unite post-war Europeans
together emotionally and politically and to give this united
Europe the economic power to compete with the U.S. economy.
The Euro was invented in New York,
New York, at Columbia University. Professor Mundell invented
both the Euro and the guiding light of Thatcher-Reagan
government: "Supply Side Economics" or, as George Bush Sr.
accurately called it, "Voodoo Economics." Reagan-Thatcher voodoo
and the Euro are two sides of the same coin. (Ouch! Some puns
Like the Iron Lady and President
Gaga. the Euro is inflexible. That is, once you join the Euro,
your nation cannot fight recession by using fiscal or monetary
policy. That leaves "wage reduction, fiscal constraints (cutting
government jobs and benefits) as the only recourse in crisis,"
The Wall Street Journal explains with joy - and sell-offs of
government property (privatizations).
Why the Euro, Professor? Dr. Mundell
told me he was upset at zoning rules in Italy that did not allow
him to put his commode where he wanted to in his villa there.
"They've got rules that tell me I can't have a toilet in this
room. Can you imagine?"
I couldn't really. I don't have an
Italian villa, so I cannot really imagine the burden of commode
The Euro will eventually allow you
to put your toilet any damn place you want.
He meant that the only way the
government can create jobs is to fire people, cut benefits, and,
crucially, cut the rules and regulations that restrict business.
He told me: "Without fiscal policy,
the only way nations can keep jobs is by the competitive
reduction of rules on business." Besides bowl location, he was
talking about the labor laws, which raise the price of plumbers,
environmental regulations, and, of course, taxes.
No, I am not making this up. And I
am not saying the Euro was imposed on the Old Country just so
the professor could place his toilet at a place of maximum
The Euro is fashioned as an anti-regulation
straitjacket that would eliminate gallons-per-flush laws, flush
away restrictive banking regulation, and all other government
Now does the destruction of Greece's
sovereignty make a
pointed out in the Guardian:
The idea that the euro has "failed"
is dangerously naive. The euro is doing exactly what its
progenitor - and the wealthy 1%-ers who adopted it - predicted
and planned for it to do.
For him, the euro wasn't about
turning Europe into a powerful, unified economic unit. It was
about Reagan and Thatcher.
And when crises arise, economically
disarmed nations have little to do but wipe away government
regulations wholesale, privatize state industries en masse,
slash taxes and send the European welfare state down the drain.
Far from failing, the euro, which
was Mundell's baby, has succeeded probably beyond its
progenitor's wildest dreams.
In other words, the Euro was intended to
Shock Doctrine straightjacket on Europe, where the big banks are
stripping Greece and other countries of their public assets,
pillaging, plundering and looting them of their natural
resources and wealth.
Update: After writing this post, we
stumbled upon an article written in 2000 by the lead financial
writer at the Telegraph, Ambrose Evans-Pritchard,
Declassified American government
documents show that the US intelligence community ran a campaign
in the Fifties and Sixties to build momentum for a united
The head of the Ford Foundation,
ex-OSS officer Paul Hoffman, doubled as head of ACUE in the late
Fifties. The State Department also played a role.
A memo from the European section,
dated June 11, 1965, advises the vice-president of the European
Economic Community, Robert Marjolin, to pursue
monetary union by stealth.
It recommends suppressing
debate until the point at which,
"adoption of such proposals
would become virtually inescapable".