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September 25, 2004 | The Guardian
The Guardian has obtained confirmation from newly discovered files in the US National Archives that a firm of which Prescott Bush was a director was involved with the financial architects of Nazism.
His business dealings, which continued until his company's assets were seized in 1942 under the Trading with the Enemy Act, has led more than 60 years later to a civil action for damages being brought in Germany against the Bush family by two former slave labourers at Auschwitz and to a hum of pre-election controversy.
The evidence has also prompted one former US Nazi war crimes prosecutor to argue that the late senator's action should have been grounds for prosecution for giving aid and comfort to the enemy.
The debate over Prescott Bush's behaviour has been bubbling under the surface for some time. There has been a steady internet chatter about the "Bush/Nazi" connection, much of it inaccurate and unfair. But the new documents, many of which were only declassified last year, show that even after America had entered the war and when there was already significant information about the Nazis' plans and policies, he worked for and profited from companies closely involved with the very German businesses that financed Hitler's rise to power. It has also been suggested that the money he made from these dealings helped to establish the Bush family fortune and set up its political dynasty.
... ... ...
By the time Fritz Thyssen inherited the business empire in 1926, Germany's economic recovery was faltering. After hearing Adolf Hitler speak, Thyssen became mesmerised by the young firebrand. He joined the Nazi party in December 1931 and admits backing Hitler in his autobiography, I Paid Hitler, when the National Socialists were still a radical fringe party. He stepped in several times to bail out the struggling party: in 1928 Thyssen had bought the Barlow Palace on Briennerstrasse, in Munich, which Hitler converted into the Brown House, the headquarters of the Nazi party. The money came from another Thyssen overseas institution, the Bank voor Handel en Scheepvarrt in Rotterdam.
By the late 1930s, Brown Brothers Harriman, which claimed to be the world's largest private investment bank, and UBC had bought and shipped millions of dollars of gold, fuel, steel, coal and US treasury bonds to Germany, both feeding and financing Hitler's build-up to war.
Between 1931 and 1933 UBC bought more than $8m worth of gold, of which $3m was shipped abroad. According to documents seen by the Guardian, after UBC was set up it transferred $2m to BBH accounts and between 1924 and 1940 the assets of UBC hovered around $3m, dropping to $1m only on a few occasions.
In 1941, Thyssen fled Germany after falling out with Hitler but he was captured in France and detained for the remainder of the war.
There was nothing illegal in doing business with the Thyssens throughout the 1930s and many of America's best-known business names invested heavily in the German economic recovery. However, everything changed after Germany invaded Poland in 1939. Even then it could be argued that BBH was within its rights continuing business relations with the Thyssens until the end of 1941 as the US was still technically neutral until the attack on Pearl Harbor. The trouble started on July 30 1942 when the New York Herald-Tribune ran an article entitled "Hitler's Angel Has $3m in US Bank". UBC's huge gold purchases had raised suspicions that the bank was in fact a "secret nest egg" hidden in New York for Thyssen and other Nazi bigwigs. The Alien Property Commission (APC) launched an investigation.
There is no dispute over the fact that the US government seized a string of assets controlled by BBH - including UBC and SAC - in the autumn of 1942 under the Trading with the Enemy act. What is in dispute is if Harriman, Walker and Bush did more than own these companies on paper.
Erwin May, a treasury attache and officer for the department of investigation in the APC, was assigned to look into UBC's business. The first fact to emerge was that Roland Harriman, Prescott Bush and the other directors didn't actually own their shares in UBC but merely held them on behalf of Bank voor Handel. Strangely, no one seemed to know who owned the Rotterdam-based bank, including UBC's president.
May wrote in his report of August 16 1941: "Union Banking Corporation, incorporated August 4 1924, is wholly owned by the Bank voor Handel en Scheepvaart N.V of Rotterdam, the Netherlands. My investigation has produced no evidence as to the ownership of the Dutch bank. Mr Cornelis [sic] Lievense, president of UBC, claims no knowledge as to the ownership of the Bank voor Handel but believes it possible that Baron Heinrich Thyssen, brother of Fritz Thyssen, may own a substantial interest."
May cleared the bank of holding a golden nest egg for the Nazi leaders but went on to describe a network of companies spreading out from UBC across Europe, America and Canada, and how money from voor Handel travelled to these companies through UBC.
By September May had traced the origins of the non-American board members and found that Dutchman HJ Kouwenhoven - who met with Harriman in 1924 to set up UBC - had several other jobs: in addition to being the managing director of voor Handel he was also the director of the August Thyssen bank in Berlin and a director of Fritz Thyssen's Union Steel Works, the holding company that controlled Thyssen's steel and coal mine empire in Germany.
Within a few weeks, Homer Jones, the chief of the APC investigation and research division sent a memo to the executive committee of APC recommending the US government vest UBC and its assets. Jones named the directors of the bank in the memo, including Prescott Bush's name, and wrote: "Said stock is held by the above named individuals, however, solely as nominees for the Bank voor Handel, Rotterdam, Holland, which is owned by one or more of the Thyssen family, nationals of Germany and Hungary. The 4,000 shares hereinbefore set out are therefore beneficially owned and help for the interests of enemy nationals, and are vestible by the APC," according to the memo from the National Archives seen by the Guardian.
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Many scholars have written about the characteristics of the totalitarian state. Umberto Eco has listed fourteen attributes of the fascist state and its ideology. I want to focus on two of them: irrationalism and decisionism. Eco has them listed as attributes 2 and 3.
The Enlightenment, the Age of Reason, is seen as the beginning of modern depravity. In this sense Ur-Fascism can be defined as irrationalism.3. Irrationalism also depends on the cult of action for action's sake.
Action being beautiful in itself, it must be taken before, or without, reflection. Thinking is a form of emasculation. Therefore culture is suspect insofar as it is identified with critical attitudes. Distrust of the intellectual world has always been a symptom of Ur-Fascism, from Hermann Goering's fondness for a phrase from a Hanns Johst play ("When I hear the word 'culture' I reach for my gun") to the frequent use of such expressions as "degenerate intellectuals," "eggheads," "effete snobs," and "universities are nests of reds." The official Fascist intellectuals were mainly engaged in attacking modern culture and the liberal intelligentsia for having betrayed traditional values.
Fascism has an irrational element that rejects modern thought because it conflicts with traditional beliefs of the Christian religion and because fascism views communist ideology as a child of the Age of Reason and Jewish intellectuals. The Nazis were well aware that Karl Marx was a German Jew. Evolution is seen as modernist and is rejected in favor of Christian creationism. This debate is repeating itself today in American society with Christian fundamentalism attempting to gain control of state education.Eternal Fascism:
Fourteen Ways of Looking at a Blackshirt
http://www.themodernword.com/eco/eco_blackshirt.html
Very closely related to irrationalism is "decisionism" in which action is seen as a value in itself. This is an existential element in fascism that elevates action over thought. Action is a sign of unambiguous power, and thought is associated with weakness and indecision. Carl Schmitt, a Nazi Law constitutional jurist, wrote that a decision is "(an actual historical event) and not within that of a norm (an ahistoric and transcendent idea)." The a priori is overshadowed by the posteriori. Actions over abstract principles, Fact over Idea, Power over pure thought, Certainty over ambiguity are the values and ideological norms that are primary in a totalitarian state.
After fleeing Germany, Marcuse wrote in 1934 a critique of German fascist society and attempted to identify those beliefs and philosophical themes found within fascist ideology. Marcuse believed that the seeds of fascism could be found in the Capitalist Democratic Liberal State, which over time mutate as Monopoly Capitalism gain control of the State as in the case of Germany. The evolution of Capitalism is also the concealed dialectic of Fascism. Those mutated liberal democratic ideas and values are betrayed by a totalitarianism based on action and force.
Using Germany as his example of a fascist society Marcuse writes:
From what social idea in Capitalistic Liberalism did this decisionism evolve? It is none other than the economic hero, the free independent entrepreneur of industrial capitalism.And within the political sphere all relationships are oriented in turn toward the most extreme "crisis," toward the decision about the "state of emergency," of war and peace. The true possessor of power is defined as beyond all legality and legitimacy: "Sovereign is he who decides on the state of emergency." (Carl Schmitt, Politische Theologie,1922).
Sovereignty is founded on the factual power to make this decision (decisionism). The basic political relationship is the "friend-enemy relationship." Its crisis is war, which proceeds until the enemy has been physically annihilated.
There is no social relationship that does not in a crisis turn into a political relationship. Behind all economic, social, religious, and cultural relations stands total politicization. There is no sphere of private or public life, no legal or rational court of appeal that could oppose it.
Negations, page 36.
The total-authoritarian state is born out of the Liberal state and the former concept of the economic leader is transformed into a Fuhrer. We can see this mutation of the concept of the "born" executive into the leader-state (Fuhrerstaat) in George Bush's speech and actions.
An uneducated but privileged man, George Bush, has merged the idea of the CEO with that of the State Leader. But society has also made this same concatenation of ideas. He is a president of action and seen as a "strong" president. He is doer and not a thinker and his followers are proud of this persona. His opponents are "feminine" and members of the "reality based community." Consequently, the Bush administration has attempted to engineer the executive branch to be the strongest in American history by claiming "inherent" presidential powers. It is precisely the concept of "state of emergency" that Bush has used to grab more and more state power in the name of security.
He has instituted the hyper-surveillance of Americas with the Patriot act, which is based on the same justification Nazi Law used to empower the Fuhrer. A Bush lawyer and advisor, John Yoo, wrote, Just two weeks after the September 11 attacks, a secret memo to White House counsel Alberto Gonzales' office concluded that President Bush had the power to deploy military force "preemptively" against any terrorist groups or countries that supported them-regardless of whether they had any connection to the attacks on the World Trade Towers or the Pentagon. The memo, written by Justice Department lawyer John Yoo, argues that there are effectively "no limits" on the president's authority to wage war-a sweeping assertion of executive power that some constitutional scholars say goes considerably beyond any that had previously been articulated by the department. http://www.msnbc.msn.com/id/6732484/site/newsweek/
Carl Schmitt, a Nazi Law constitutional jurist in Hitler's Third Reich, wrote a similar justification of power for the State Leader using the concept of the "exception" in his work "Political Theology," Hence, the thundering opening of his treatise: 'The sovereign is he who decides on the exception.' It is a disturbingly 'realistic' view of politics, which, in the manner of Hobbes, subordinates de jure authority to de facto power: autoritas, non veritas facit legem. (The law is made by the one who has authority (i.e. power) and not the one who possesses the truth (the legitimate sovereign).)
The problem of the exception, for the constitutional jurist Schmitt, can only be resolved within the framework of a decision (an actual historical event) and not within that of a norm (an ahistoric and transcendent idea). Moreover, the legal act which decides what constitutes an exception is 'a decision in the true sense of the word', because a general norm, an ordinary legal prescription, 'can never encompass a total exception'. If so, then, 'the decision that a real exception exists cannot be derived entirely from this norm.' The problem of the exception, in other words, demarcates the limit of the rule of law and opens up that trans-legal space, that no-man's land of existential exigency, which is bereft of legal authority and where the decision of the sovereign abrogates the anomaly of the legal void. …against the legal positivism of his times, Schmitt seems to be arguing that not law but the sovereign, not the legal text but the political will, is the supreme authority in a state. States are not legal entities but historical polities; they are engaged in a constant battle for survival where any moment of their existence may constitute an exception, it may engender a political crisis that cannot be remedied by the application of the rule of law. From the existential priority of the sovereign over the legitimacy of the norm, it would also follow that according to Schmitt, law is subservient to politics and not autonomous of it. The Sovereignty of the Political Carl Schmitt and the Nemesis of Liberalism http://www.algonet.se/~pmanzoor/CarlSchmitt.htm
When the Bush administration argues that increased presidential power is needed to fight terrorism by suspending or overriding the constitutional protections against search and seizures, they are arguing the principles of Nazi constitutional law. Vice President Dick Cheney on Tuesday vigorously defended the Bush administration's use of secret domestic spying and efforts to expand presidential powers, saying "it's not an accident that we haven't been hit in four years." Talking to reporters aboard his government plane as he flew from Islamabad, Pakistan to Muscat, Oman on an overseas mission, Cheney said a contraction in the power of the presidency since the Vietnam and Watergate era must be reversed. "I believe in a strong, robust executive authority and I think that the world we live in demands it. And to some extent, that we have an obligation as the administration to pass on the offices we hold to our successors in as good of shape as we found them," he said.
http://www.breitbart.com/news/2005/12/20/D8EK28B82.htmlAgainst these ever expanding powers of the State stand the once traditional individual freedoms upheld by the Liberal Democratic State. The theologian and philosopher of the Age of Reason, Immanuel Kant wrote…Human right must be kept sacred, no matter how great the sacrifice it costs the ruling powers. One cannot go only halfway and contrive a pragmatically conditioned right….All politics, rather, must bend the knee before sacred human right…
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October 15, 2013 | truth-out.org
(Image: Jared Rodriguez
In the aftermath of the reign of Nazi terror in the 1940s, the philosopher Theodor Adorno wrote:
National Socialism lives on, and even today we still do not know whether it is merely the ghost of what was so monstrous that it lingers on after its own death, or whether it has not yet died at all, whether the willingness to commit the unspeakable survives in people as well as in the conditions that enclose them.1
.... ... ...
For Adorno, the conditions for fascism would more than likely crystallize into new forms. For instance, they might be found in the economic organization of a society that renders
"the majority of people dependent upon conditions beyond their control and thus maintains them in a state of political immaturity. If they want to live, then no other avenue remains but to adapt, submit themselves to the given conditions."3
In part, this speaks to the role of corporate-controlled cultural apparatuses that normalize anti-democratic ideologies and practices as well as to the paramount role of education in creating a subject for whom politics was superfluous. For Adorno, fascism in its new guise particularly would launch a systemic assault on the remaining conditions for democracy through the elimination of public memory, public institutions in which people could be educated to think critically and the evisceration of public spaces where people could learn the art of social citizenship, thoughtfulness and critical engagement. He also believed that the residual elements of the police state would become emergent in any new expression of fascism in which the corporate and military establishments would be poised to take power. Adorno, like Hannah Arendt, understood that the seeds of authoritarianism lie in the
"disappearance of politics: a form of government that destroys politics, methodically eliminating speaking and acting human beings and attacking the very humanity of first a selected group and then all groups. In this way, totalitarianism makes people superfluous as human beings."4
The American political, cultural, and economic landscape is inhabited by the renewed return of authoritarianism evident in the ideologies of religious and secular certainty that legitimate the reign of economic Darwinism, the unchecked power of capital, the culture of fear and the expanding national security state. The ghosts of fascism also are evident in what Charles Derber and Yale Magress call elements of "the Weimer Syndrome," which include a severe and seemingly irresolvable economic crisis, liberals and moderate parties too weak to address the intensifying political and economic crises, the rise of far-right populist groups such as the Tea Party and white militia, and the emergence of the Christian Right, with its racist, anti-intellectual and fundamentalist ideology.5 The underpinnings of fascism are also evident in the reign of foreign and domestic terrorism that bears down on the so called enemies of the state (whistleblowers and nonviolent youthful protesters) and on those abroad who challenge America's imperial mission; it is also visible in a growing pervasive surveillance system buttressed by the belief that everyone is a potential enemy of the state and should be rightfully subject to diverse and massive assaults on rights to privacy and assembly.6
... ... ...
During the past few decades, it has become clear that those who wield corporate, political and financial power in the United States thrive on the misery of others. Widening inequality, environmental destruction, growing poverty, the privatization of public goods, the attack on social provisions, the elimination of pensions and the ongoing attacks on workers, young protesters, Muslims and immigrants qualify as just a few of the injustices that have intensified with the rise of the corporate and financial elite since the 1970s. None of these issues are novel, but the intensification of the attacks and the visibility of unbridled power and arrogance of the financial, corporate and political elite that produces these ongoing problems are new and do not bode well for the promise of a democratic society.
Such failings are not reducible either to the moral deficiencies and unchecked greed of both major political parties or the rapacious power of the mega banks, hedge funds and investment houses. Those intellectuals writing to acknowledge the current state of politics in America understand the outgrowth of a mix of rabid racism, religious fundamentalism, civic illiteracy, class warfare and a savage hatred of the welfare state that now grips the leadership of the Republican Party.8 The new extremists and prophets of authoritarianism are diverse, and their roots are in what Chris Hedges calls the radical Christian right,9 Michael Lind calls the reincarnation of the old Jeffersonian-Jacksonian right10 and what Robert Parry and Andrew O'Hehir call racist zealots.11 All of these elements are present in American politics, but they are part of a new social formation in which they share, even in their heterogeneity, a set of organizing principles, values, policies, modes of governance and ideologies that have created a cultural formation, institutional structures, values and policies that support a range of anti-democratic practices ranging from the militarization of public life and acts of domestic terrorism to the destruction of the social state and all those public spheres capable of producing critical and engaged citizens.
Needless to say, all of these groups play an important role in the rise of the new extremism and culture of cruelty that now characterizes American politics and has produced the partial government shutdown and threatens economic disaster with the debt-ceiling standoff. What is new is that these various fundamentalist registers and ideological movements have produced a coalition, a totality that speaks to a new historical conjuncture, one that has ominous authoritarian overtones for the present and future. There is no talk among the new extremists of imposing only an extreme Christian religious orthodoxy on the American people or simply restoring a racial state; or for that matter is there a singular call for primarily controlling the economy. The new counter-revolutionaries and apostles of the Second Gilded age are more interested in imposing a mode of authoritarianism that contains all of these elements in the interest of governing the whole of social life. This suggests a historical conjuncture in which a number of anti-democratic forces come together to "fuse and form a kind of configuration" - a coming together of diverse political and ideological formations into a new totality.12 The partial government shutdown is a precondition and test run for a full coup d'état by the social formations driving this totality. And while they may lose the heated battle over the government shutdown and the debt ceiling, they have succeeded in executing their project and giving it some legitimacy in the dominant media.
Hiding beneath the discourse of partisan politics as usual, the authoritarian face of the new extremism is overlooked in the dominant media by terms such as "the opposing party," "hard-line conservatives"13 or, in the words of New York Times columnist Sam Tanenhous, the party of "a post consensus politics."14 In fact, even progressives such as Marian Wright Edelman fall into this trap in writing that "some members of Congress are acting like children - or, more accurately, worse than children."15 In this case, the anti-democratic ideologies, practices and social formations at work in producing the shutdown and the potential debt-ceiling crisis are not merely overlooked but incorporated into a liberal discourse that personalizes, psychologizes or infantilizes behaviors that refuses to acknowledge or, in fact, succumbs to totalitarian tendencies.
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Obama may not be responsible for the government shutdown and the debt ceiling crisis, but he can be charged with furthering a climate of lawlessness that feeds the authoritarian culture supportive of a range of political, economic and cultural interests. The American anti-war activist Fred Branfman argues that:
Under Mr. Obama, America is still far from being a classic police-state of course. But no President has done more to create the infrastructure for a possible future police-state. This infrastructure will clearly pose a serious danger to democratic ideals should there be more 9/11s, and/or increased domestic unrest due to economic decline and growing inequality, and/or massive global disruption due to climate change.23
The new extremists in the Republican Party are simply raising the bar for the authoritarian registers and illegal legalities that have emerged under Bush and Obama in the past decade - including the bailing out of banks guilty of the worst forms of corporate malfeasance, the refusal to prosecute government officials who committed torture, the undermining of civil liberties with the passage of the Patriot Act, the National Defense Authorization Act, the establishment of a presidential kill list and the authorization of widespread surveillance to be used against the American people without full transparency.
The current crisis has little to do with what some have called a standoff between the two major political parties. It is has been decades in the making and is part of a much broader coup d'état to benefit the financial elite, race baiters, war mongers and conservative ideologues such as the right-wing billionaires, David and Charles Koch, Rand Paul, Ted Cruz, Americans for Prosperity, the Club for Growth, the Heritage Foundation policy hacks and other extremist individuals and organizations that believe that democracy poses a threat to a government that should be firmly in the hands of Wall Street and other elements of the military-industrial-surveillance-prison complex.
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In 2004, I wrote a book titled The Terror of Neoliberalism: The New Authoritarianism and the Eclipse of Democracy.33 What is different almost a decade later is a mode of state repression and an apparatus of symbolic and real violence that is not only more pervasive and visible but also more unaccountable, more daunting in its arrogance and disrespect for the most fundamental elements of justice, equality and civil liberties
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To read more articles by Henry A. Giroux and other authors in the Public Intellectual Project, click here.
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