The Crash of 1929 and the resulting depression have been exhaustively covered in a previous work (Secrets of the Federal Reserve, 1983).  Roosevelt was elected president in 1932 in a campaign which ignored Hoover’s Rothschild connections and his World War I record.  Instead, Roosevelt blamed Hoover for a depression which had been set up by the Bank of England.  Hoover states in his Memoirs.

“In replying to Roosevelt’s statement that I was responsible for the orgy of speculation, I considered for some time whether I should expose the responsibility of the Federal Reserve Board by its deliberate inflation policies from 1925-28 under European influence, and my opposition to these policies.”

Hoover remained silent, and was ushered out of office.  He later termed Gerard Swope’s “economic planning” for the New Deal as “the precise pattern of Fascism”.  “The New Dealers”, by an Unofficial Observer, Literary Guild 1934, noted that the New Deal included W.A. Harriman, administrator in charge of heavy industry, and his sister, Mary Rumsey, who backed Newsweek with Vincent Astor, and the New Deal weekly, Today.  “Observer” also noted that Col. House was the elder statesman behind the New Deal, and that House had only backed two Presidential candidates, Wilson and FDR.  Roosevelt continued the Wilson policies (actually the House policies outlined in “Philip Dru, Administrator”), with the same personnel, and ended as Wilson did, by involving America in another World War.  Observer states that Col. House’s New York apartment was only two blocks from the Roosevelt home on E. 65th St. in New York, and that House was seen there almost every day in 1932.  He also visited Roosevelt in New England and on the Roosevelt yacht.

To consolidate Roosevelt’s power, his backers used the typical World Order scheme – they set up his “opposition”.  In August, 1934, the principal architects and financiers of his New Deal formed the Liberty League, immediately characterized as an “extreme rightwing” organization.  Pierre and Irenee DuPont put up $325,000 for it.  The League was also financed by J.P. Morgan, the Rockefellers, J. Howard Pew, and William J. Knudsen (who was later appointed by FDR to an important position!).  The backers of Liberty League, who were busily denouncing Roosevelt & his staff as “Communist”, which many of them were, were also the organizers of American International Corporation, which had been formed to prevent the economy of the Soviet Union from collapsing.  Liberty League successfully corralled the opponents of FDR and branded them as “rightwing nuts”.  Roosevelt was given the opportunity to rant against his opposition as “economic royalists”, “the Old Guard”, and “princes of privilege”.  Gerald L.K. Smith was then brought into the picture, in order to smear Roosevelt's opposition as “anti-Semitic”.  The ploy operated from 1934 to the 1936 elections, when it effectively destroyed London's campaign.  No effective political opposition was organized against Roosevelt for the rest of his lifetime in office.  It was one of the most successful political hoaxes in American history.  Roosevelt then married his son to an heiress of the DuPont dynasty.  At the very time that Eugene DuPont, cousin of Pierre, was one of the most active members of the Liberty League, F.D. Roosevelt Jr. was courting his daughter, Ethell !  They were married June 28, 1937, in what Time Magazine called the “Wedding of the Year”, presided over by Dr. Endicott Peabody.  The couple made the cover of Time magazine, the only newlyweds ever to do so.

These measures were necessary because FDR's backers were planning to involve the U.S. in the Second World War.  Any popular political opposition to Roosevelt might have swept him out of office in 1940, just when he was needed to bring off the Pearl Harbor attack.  On the morning of Pearl Harbor, Gen. Marshall, his Chief of Staff, met secretly with Maxim Litvinov (married to Ivy Low of England), to assure the Russians that everything was going according to plan.  Marshall later testified before Congress that he “couldn't remember” where he was on Pearl Harbor Day.

The “managed conflict” was well on its way.  Jacques Rueff points out that Schacht did not invent Hitler's monetary policy; it was imposed on Germany “by American and British creditors to finance war preparations and finally unleash war itself” (The Monetary Sins of the West).  Rueff also points out that the Standstill Agreement of 1931 allowing Germany a moratorium on war debts through the 1930s was a amicable pact between the London, New York and German branches of the Warburg and Schroder houses.  Max Warburg remained Schacht's deputy at the Reichsbank until 1938; Kurt von Schroder then became his deputy.  (Schacht's father had been Berlin agent for the Equitable Life Insurance Co. of New York.)  The industrialist levies for Hitler (the Circle of Friends) were paid into the Schroder Bank.

Throughout the 1930s, Hitler was duped into persevering in his desire for friendship with England, an alliance originally proposed jointly by Theodore Roosevelt and the Kaiser in 1898 between the three Nordic powers, England, Germany and the United States.  The Schröders assured Hitler that their Anglo-German Fellowship in England was a hundred times more influential than it actually was.  With such figures as the Astors and the Chamberlains supporting rapport with Germany, Hitler was persuaded that war with England was impossible.  In 1933 he had announced his discovery that Marx, Lenin and Stalin had all said that before international Communism could triumph, England and her Empire must be destroyed.  “I am willing to help defend the British Empire by force if called upon,” he declared.  In 1936, Hitler arranged for meetings to take place between English and German diplomats, but the desired result was never attained, as the British had only one goal to lull Hitler into a sense of false security until they could declare war against him.

To lure Hitler into World War II, it was necessary to guarantee him adequate supplies of such necessities as ball bearings and oil.  Jacob Wallenberg of the Swedish Enskilda Bank, which controlled the giant SKF ball bearing plant, furnished ball bearings to the Nazis throughout the war.  The anti aircraft guns sending flak against American air crews turned on SKF ball bearings.  Its American plant, SKF of Philadelphia, was repeatedly put on the Proclaimed List, and each time, Dean Acheson removed it.

President William S. Farish of Standard Oil refueled Nazi ships and submarines through stations in Spain and Latin America.  When Queen Elizabeth recently came to the U.S., the only family she visited was the Farishes.  Throughout the war, the British paid royalty to Ethyl-Standard Corp. on the gasoline used by German bombers who were destroying London.  The money was placed in Farben bank accounts until after the war.  I.G. Farben was organized by the Warburgs in 1925 as a merger between six giant German chemical companies, Badische Anilin, Bayer, Agfa, Hoechst, Welierter-Meer, and Griesheim-Elektron.  Max Warburg was director of I.G. Farben, Germany, and I.G. Chemie, Switzerland.  American I.G. Farben was controlled by his brother, Paul, architect of the Federal Reserve System, Walter Teagle of Standard Oil, and Charles Mitchell of National City Bank.  Just before World War II broke out, Ethyl-Standard shipped 500 tons of ethyl lead to the Reich Air Ministry through I.G. Farben, with payment secured by letter of Brown Bros. Harriman dated Sept. 21, 1938.

Throughout World War II, the Paris branches of J.P. Morgan and Chase National Bank continued to do business as usual.  At the end of the war, occupation authorities repeatedly issued orders to dismantle I.G. Farben plants, but were countermanded by Gen. William Draper of Dillon Read, which had financed German rearmament in the 1920s.

Winston Churchill remarked of this “managed conflict” in 1945, just before it ended, “There never was a war more easy to stop.” (quoted in Washington Post June 11, 1984).  The only real difficulty had been encountered in getting it started.  Churchill succeeded in prolonging the war for at least a year by defeating Gen. Wedemeyer's plan for a Channel crossing in 1943, and by embarking on his ruinous North African-Sicilian swing, a replay of his disastrous Gallipoli campaign of the First World War.  Life revealed April 9, 1951 that Eisenhower had radioed Stalin through the U.S. Military Mission in Moscow of his plan to stop at the Elbe and allow the Russians to take Berlin.  The message had been written by Ike's political advisor, John Wheeler-Bennett of RIIA, received by W. Averill Harriman, and delivered to Stalin.  In Washington, Gen. Marshall assured President Truman that we were “obligated” to allow the Russians to take Berlin.  Senator Joseph McCarthy later called Marshall “a living lie”.

The conquered German people were now systematically looted and ruthlessly governed by the occupying powers.  Henry Kissinger, John J. McCloy (son-in-law of a J.P. Morgan partner), Benjamin Buttenweiser, partner of Kuhn, Loeb & Co. (his wife was Alger Hiss's lawyer at his trial for perjury), and other Rothschild operatives descended like locusts upon the prostrate nation.  Aid to Soviet Russia continued under the guise of the Marshall Plan, a rerun of Hoover's Belgian Relief Commission in World War I.  The Marshall Plan originated as a special study by David Rockefeller for the Council on Foreign Relations, “Reconstruction of Western Europe” completed in 1947.  It was retitled the “Marshall Plan” and advertised as a great contribution to “democracy in Europe”.  (Imperial Brain Trust-Shoup).  W. Averell Harriman was installed in the Rothschild's Paris mansion, Hotel Talleyrand, as head of the Marshall Plan.