On Tue, 8 Feb 2005 17:58:21 -0500, "Pookie"
Post by Pookie
It means that...when there was a Democrat president stating that there was a
crisis in '98, Dems agreed...now 6+ years later, Pres. Bush says it's a
problem & Dems say "what problem?"...hypocrites!!!
George Shultz, your fellow Republican, started the Social Security
privatization push since the 1970s:
The Man With the
`Chile Model' of Fascism
by Richard Freeman and Paul Gallagher
This article is excerpted from the pamphlet "Bush's Social Security
Privatization: A Foot in the Door for Fascism," issued by the Lyndon
LaRouche Political Action Committee in December 2004.
No one figure is more responsible for the drive to privatize and loot
Social Security than George Pratt Shultz of Bechtel; senior "fixer" of
the Republican Party; senior recruiter of the George W. Bush White
House team, "the Vulcans"; and, like Robert McNamara before him, a
preeminent "economic hit-man" of the Anglo-American financial order on
the international stage. Shultz was the key officialissuing
instructions to President Richard Nixonwho brought Franklin
Roosevelt's Bretton Woods postwar monetary system to an end in August
1971. He was the master of the "Chicago economists" who dominated Gen.
Augusto Pinochet's 1973 coup and dictatorship in Chile. And Shultz in
1981 demanded from fascist Chile's Labor Minister José Piñera, who had
just privatized social security there, a memo to incoming President
Ronald Reagan on "how Chile did it." This was the first shot, fired 23
years ago, in the war against FDR's Social Security in the United
States. Shultz's banker network and Piñera have collaborated ever
since; and in fact, the "Chicago Boys" team of which Piñera was a part
in Pinochet's Chile, was a product then of Shultz and his pet
economist Milton Friedman.
Shultz, in a PBS-TV interview on Oct. 2, 2000, said of the Chile
events: "The armed forces took over and no doubt did some
unnecessarily brutal things in the process, but nevertheless they took
over. . . . There were in Chile some people who came to be called
`Chicago Boys,' they had studied economics at the University of
Chicago. . . . And so a Chicago School-like economy gradually evolved
in Chile. It worked."
Shultz vs. Roosevelt
Shultz's inside job in getting President Nixon to announce on Aug. 15,
1971, that the United States was going off the gold-reserve
systemtoward the floating-exchange-rate system that has ruled
"globalization" ever sincehammered the nails in the coffin of
Roosevelt's protectionist Bretton Woods system. Shultz brought that
system to an official end with his declarations as U.S. Treasury
Secretary, at the September 1973 International Monetary Fund annual
meetingjust two and a half weeks after Pinochet's coup created
Shultz's "Chile model" of fascist economics to be exported
Today, Shultz directs two of the bankers' most crucial projects.
First, through the Vulcan team featuring Condoleezza Rice and Paul
Wolfowitza team Shultz created for a Bush II Presidency in summer
1998Shultz controls White House underlying policy. Second, ever since
Shultz assembled the Schwarzenegger for Governor campaign in
California in 2003, he has run the hands-on "Beast-Man Project": to
make Arnie into a Hitler-like live force in this country.
George Shultz was raised to set oligarchical policy; his father, Birl
Earl Shultz, was a major intelligence figure in the Anglo-American
"Trust" operation. The elder Shultz was the personnel director for the
American International Corporation of 120 Broadway, New York, N.Y.,
which was the most powerful hub of World War I-era Anglo-American
financial chicanery. In 1957, George Shultz joined the Chicago School,
becoming an economics professor at the University of Chicago's
Graduate Business School; he was dean of the Business School, 1962-68.
During this time, the Economics Department flourished as the American
command post for the financier oligarchy's Mont Pelerin Society, which
preached the anti-regulation, anti-government cult of speculative
monetarism. Pinochet's Chile, with its jackboot fascism and radical
privatization/looting of the country's national patrimony, was the
personification of the Chicago School ideology. It is not surprising
that the University of Chicago of the Shultz era provided cohabitation
for the neo-liberal Mont Pelerinites and the Hitlerianism of Leo
Strauss and the Straussian promoters of Nazi ideologues Martin
Heidegger and Carl Schmitt.
As a trusted Chicago School agent, in 1969, Shultz was seconded to the
incoming Richard Nixon Administration as Labor Secretary, at which
post he served through June 1970; then, as first head of the Office of
Management and Budget (OMB), he presided over brutal austerity until
May-June 1972; finally, he functioned as Treasury Secretary until June
1974. Working in tandem with Undersecretary of the Treasury for
Monetary Affairs Paul A. Volcker, Shultz controlled and then replaced
Treasury Secretary John Connally. In 1969, Nixon was induced to sign
National Security Study Memorandum 7, which created a formally
designated "Volcker Group" inside his Administration, directed to
prepare plans to change monetary policy. In May 1971, this group
produced a paper entitled, "Contingency," which already proposed
"suspension of gold convertibility."
As head of OMB, Shultz used the burgeoning U.S. budget and
balance-of-payment crises to push his way into advising Nixon on
international monetary affairs. After a series of monetary crises that
had started with the November 1967 devaluation of Britain's pound
sterling, Shultz and Volcker made their move. According to a State
Department document, International Monetary Policy, 1969-72, on Aug.
2, 1971, and again on Aug. 12, President Nixon sequestered himself
with Shultz and Connally in extensive meetings at which the demolition
of the Bretton Woods system was mapped out. On the matter of the
international monetary system, Connally was constrained to present
Volcker's ideas. After two weeks of secret meetings, culminating in
two days of Camp David meetings, on Aug. 15, President Nixon announced
that he was severing the dollar from the gold reserve system. Nixon
also announced a fascist domestic austerity policy that was part of
the same package.
In his book, Economic Policy Beyond the Headlines, Shultz gloated:
"And it was accepted not only that fixed rates were clearly
impracticable for the time being, but that also we were fortunate to
have in place a flexible market system. That was a bitter pill for
some to swallow. To others, including the U.S., the emergence of a
market-based system was seen as a greater improvement over the
inflexible gold-based system that preceded Camp David" (emphasis
added). In June 1972, Shultz had himself appointed U.S. Treasury
Secretary. In March 1973, he personally arranged, at a tense G-10
Finance Ministers meeting in Paris, to eliminate all support for fixed
exchange rates. Shultz crowed that "markets rather than governments
were explicitly in charge."
`Economic Hit Man'
In 1981, George Shultz, as Bechtel Corp. president and advisor to the
transition team of President-elect Ronald Reagan, paid a visit to José
Piñera, Chile's Minister for Labor and Social Security, who imposed
the privatization of social security at the point of a bayonet. Shultz
got from Piñera a memo on how to privatize Social Security on the
Chilean model. Piñera describes what happened in an entry on his
website, dated January 1981: "George Shultz, former Treasury Secretary
and now advising President-elect Ronald Reagan, visits me in the
Ministry of Mining at the head of a large Bechtel delegation. After
discussing mining issues, he stays alone for another hour and asks me
to explain fully our revolutionary social security reform. At the end,
he asks me for a one-page memo on the reform to give to Reagan. . . .
Next day I delivered it to his hotel. The Dow Jones is at 900."
Shultz apparently could not persuade Reagan. but kept working on the
matter. Today, he is a board member of the Republicans' House Policy
Committee's "Social Security Working Group," leading the push for
Social Security privatization, which George Bush is seeking to
In his book, "Confessions of an Economic Hit Man," author John
Perkins, a former chief economist for the international consulting
firm Charles T. Main, identifies the process by which "economic
hitmen" working for large financial institutions and other firms
indebt Third World countries, and then use the debt to extract
military and political concessions from the indebted country; and to
commit genocide, so as to devour the country's natural resources.
In his analytical account, Perkins identified that George Shultz, both
as president of Bechtel (1975-82) and as Ronald Reagan's Secretary of
State (1982-89), functioned as the heir to Robert Strange McNamara as
one of the top figures in the new imperial pyramid of power, which
employed the structure of economic hitmen to bleed and crush nations.
Shultz used force to topple governments, such as the Philippines'
Ferdinand Marcos in 1986, and such as the various attacks on Panama,
culminating in the 1989 invasion. On Oct. 1, 1982, Mexican President
José López Portillo, fresh from his courageous imposition of exchange
controls the month before, carried out to protect Mexico's credit,
told the United Nations General Assembly that the world must either
change (Shultz's creation) the international monetary system "or else
enter into a new medieval Dark Age." Then-Secretary of State Shultz
had spoken one day earlier, Sept. 30, threatening the nations present
that they had better stay in line, and pay their debts to the IMF.
But Shultz's power goes further. On Oct. 25, 1984, speaking at the
Park Avenue Synagogue in New York, Shultz, dreaming of world empire,
delivered remarks calling for the U.S. to adopt a preemptive
first-strike policy, such as one might associate with Vice President
Cheney or Defense Secretary Donald Rumsfeld today. Shultz argued that
the United States had to strike first: "The public must understand
before the fact that some will seek to cast any preemptive or
retaliatory action by us in the worst light . . . The public must
understand before the fact that occasions will come when their
government must act before each and every fact is known."
The Vulcans and Arnie
That the bankers have entrusted to Shultz the special cases of George
W. Bush and Arnold Schwarzenegger, indicates the level of overview and
direction Shultz exercises over the whole system.
In April 1998, at Shultz's Palo Alto, Calif. home, the George W. Bush
for President in 2000 campaign was formulated and launched. Shultz
later agreed to chair the Bush Presidential Exploratory Committee; his
vice chair was Dick Cheney. Recognizing that "Dubya" was one of the
most unqualified individuals ever to run for, let alone hold, high
office, Shultz formed a group to shape the tabula rasa of Bush's mind.
Group participant Condoleezza Rice gave the group the name "Vulcans,"
but it was Shultz who ran it and gave it its neo-conservative
ideology. Starting in autumn 1998, Shultz arranged that every Sunday
night, Condi Rice, and the Straussian Paul Wolfowitz (now #2 at the
Defense Department) would hold a conference call with Bush, then
Governor of Texas. Soon, it is reported, the Cold Warriors and Zionist
Lobby zealots Richard Perle and Dov Zakheim were holding Monday
morning conference calls with Bush. Thus Shultz developed a network
through which, at critical junctures, to set White House policy.
A similar process is underway for Arnie, the iron-pumping,
steroid-chugging import from Austria, who in a 1977 interview said, "I
admired Hitler . . . because he came from being a little man with
almost no formal education, up to power, and I admire him for being
such a good public speaker and for his way of getting to the people
and so on. . . ."
But how did Arnie get into the Governorship of California?
The deregulated electricity "Enron" rip-off of California in 2000-01,
to the tune of approximately $70 billion, led to the collapse of the
electricity grid, a crisis for basic industry, and a rage within the
population at rising energy bills. The circle that included George
Shultz turned the rage against the Governor, Democrat Gray Davis. On
Aug. 15, 2003, Arnie appeared before the cameras to announce his
campaign for Governor during the recall; he was flanked by his
campaign advisory team leaders George Shultz and Warren Buffett.
Buffett, who runs one of the biggest vulture funds in the world, has
been lionized as the "genius" of the investment world by Wall Street's
On Sept 17, 2004, Schwarzenegger announced the establishment of a
16-member Council of Economic Advisors that will help him "in
confronting the economic challenges facing" California. Its chairman
is George Shultz.
Schwarzenegger has already exploded California's state debt by 50% and
savaged its government programs, in a single year as Governor. Now
Shultz is preparing Arnie for a Beast-Man run for the U.S. Presidency.
As his 50-year record shows, when the system is in breakdown, and the
oligarchy desperately needs sources of lootas now, with Social
SecurityGeorge Shultz is the man with the "Chile model."