From da The Most Revolutionary Act:
Financing Hitler's Rise to Power
Book Review (Part 3 of 3)
Tragedy and Hope: A History of the World in Our Time
Carroll Quigley (1966 MacMillan)
Tragedy and Hope is a free download from
The most disturbing section of Tragedy and Hope describes how international bankers engineered World War I and what Quigley calls the Banker-Engendered Deflationary Crisis of 1927-40 (aka the Great Depression). The parallels are unmistakeable between the current “austerity cuts” being forced on us and the harsh economic measures the banks imposed on all western governments between 1918 and 1927. The supposed justification was to repay “debts” for a four year war the bankers themselves initiated.
According to Quigley, 19th century capitalism saw a gradual transition from finance capitalism (in which bank loans fund economic growth) and monopoly capitalism (in which the profits generated by corporate monopolies
fund growth). Although some private banking families invested in a few monopolies, such as oil companies and railroads. However for the most part, they preferred not to tie up their wealth in industrial stocks, less this deprive them of short term gains from loans and currency speculation.
The Threat Posed by German Industrialization
In fact, many bankers saw the growth of monopoly capitalism as a serious threat to their own economic interests. Following the 1870 unification under Bismarck, Germany experienced a rapid burst of industrialization, generating sufficient profit that they ceased to rely on investment banks to finance either business or government. A second way German industrialization threatened global bankers was by competing with England and other European countries for export markets. Russia also posed a significant threat, owing to claims it made on the Balkans and the Middle East (and Middle East oil) following the break-up of the Ottoman (Turkish) Empire.
Thus between 1870 and 1914, the world banking oligarchy pressured western governments (by controlling their money supply and foreign exchange) to agree to a series of complicated alliances that had the ability to escalate local conflicts in unstable regions formerly controlled by Turkey into a full scale war (on Austria and Germany). The one that ultimately triggered World War I was a false flag incident (blamed on Serbia) involving the assassination of the heir to the Austrian throne. During the same period, the world banking cabal simultaneously hatched a scheme to destabilize Russia by secretly funding the Bolsheviks and other Russian revolutionaries.
Turning a Profit from World War I
The European central banks had it all worked out beforehand how they would turn the 1914 conflict that began in Sarajevo (which they believed would only last four to six months) to their own profit. Quigley describes a secret meeting in July 1914 (war was declared August 4, 1914) in which the major European bankers agreed to allow the British Treasury to print treasury notes to pay outstanding government bank debts. However this would only be with the understanding that this “fiat” money would be redeemed with gold certificates (via increased taxation) at the war’s end. They ultimately forced similar agreements on France and the US.
Financing Hitler and the Nazis
When the war ended in 1918, public debt in Western Europe and the US had increased by 1000%. The austerity measures global investment banks forced on the US, England, France and other European countries led to a massive bankruptcies and unemployment and the virtual collapse of foreign trade. Except in Germany. The global banking elite used the wealth generated from debt repayment to finance rapid German re-industrialization and militarization, along with the Nazi movement created by Hitler and the increasingly powerful German corporations, such as IG Farben, Siemens (renamed Bayer), Daimler Benz, Porsche/Volksvagen and Krupp. Quigley identifies American banks and corporations who helped finance the Nazi movement, which included Kodak, Ford, Coca-Cola, DuPont, Standard Oil, IBM, Random House and Chase Bank.
The bankers justified funding Hitler and re-militarizing Germany by talking of the need to contain a growing world communist movement – which they themselves had created.