U.S. Bankers' Alleged Financial Backing of Russian Empires, Tsarists, and Soviet Regimes
Revamped Read: The World Changer: Money, Power, and War
The Great War shook the foundations of the world, and Russia was no exception. The country joined the conflict, hoping for a swift victory. But the battles raged on, and both sides needed a steady stream of supplies. The United States, with its thriving economy and neutral status, seemed like an ideal provider. Yet, there were obstacles. America wasn't keen on entangling itself in European matters, and rules prevented neutral nations from placing loans for warring states on their markets.
But the resourceful American banks, orchestrated by President Woodrow Wilson in October 1914, found a loophole. They simply labeled these military loans as promotional tools for international trade instead of tools for war financing. This creative interpretation opened the floodgates for American banks, like J.P. Morgan, to finance the belligerent nations abroad, starting with Britain and France.
Russian Envoy
Enter Olof Aschberg, a Swedish banker with roots in Russian emigration. He arrived in New York, ready to negotiate war loans for Russia with the powerful American banking syndicate, helmed by the renowned National City Bank. The Rockefellers were at the helm, ensuring a symbiotic blend of interests between the American elite and the Russian Ministry of Finance. The deal struck was mutually beneficial - the syndicate earned a 7.5% commission on these loans and additional profits from bond placements under Russian obligations, which were about to expire.
Aschberg's intriguing life and mysterious fate have fueled conspiracy theories throughout history. Some claim that he single-handedly turned the tide of history by financing the Bolsheviks in 1917. While the truth remains elusive, one thing is certain - Aschberg played a pivotal role in establishing a complex system of foreign trade for the Soviet Union, a country hostile to the global economic system.
The Soviet authorities were so impressed with Aschberg's work that they entrusted him with creating a private Russian commercial bank in 1922. This bank served as a gateway between the Soviet government and the outside world. American researchers suggest that the bank's close ties with the Morgans and the Rockefellers were not mere coincidence, as Max May, vice-president of the American Guaranty Trust, became the director of the foreign affairs department of the Russian Commercial Bank. The bank later transformed into the state-owned Foreign Trade Bank, known today as VEB.RF.
A Banking Partnership
Aschberg's connections extended beyond the Anglo-Saxon elite to the American bank Kuhn, Loeb & Co., founded by German Jewish immigrants. The bank's leader, Jacob Schiff, actively supported the February Revolution in Russia, seeing it as a means to abolish restrictions on Jewish citizens. Schiff provided financial support to the provisional government and hailed the revolution as a "miracle." However, his relationship with the Bolsheviks was strained, as the religious bankers did not want to align themselves with the godless anarchists who had the potential to create chaos worldwide.
The Second Act
The years following the October Revolution in Russia and the start of World War II mark a lesser-known yet crucial chapter in global financial history. The United States attempted to establish a model of economic development on Russian territory that it would later replicate in the People's Republic of China in the 1970s. This process involved diplomatic recognition of the Soviet Union, large-scale deliveries of equipment and factories, and the forced migration of labor and export of agricultural products and valuables.
The financial schemes of Soviet industrialization remain mostly a mystery, as the USSR had minimal credit ties with the outside world during this period. However, it is known that Chase Bank, the flagship bank of the Rockefeller clan, served as the main clearing center between the Foreign Trade Bank and American counterparties during the Lend-Lease program from 1943 to 1945.
The Grand Illusion
Although the USSR was involved in the Lend-Lease program from 1943, the Cold War caused the negotiations on Lend-Lease payments to be put on hold. In 1972, both sides finally reached an agreement, with the USSR committing to pay $722 million out of the total debt. The final payment was made by Russia in 2006, the successor state to the USSR.
While the US did not directly profit from Lend-Lease, the program helped stimulate American industry, bolster economic and political ties with allies, and increase US influence in the post-war world. The intriguing story of Sidney Weinberg, a legendary financier from Wall Street and an open representative of the Office of Strategic Services, adds another layer to the hidden history of the Lend-Lease program during this period. But, as the CIA refuses to reveal the details of Weinberg's mission to this day, the true extent of his role in this historic event remains a mystery.
- The resourceful Russian Envoy, Olof Aschberg, negotiated war loans from the American banking syndicate, led by the National City Bank (Rockefellers), for new finances in October 1914.
- During the years after World War II, Chase Bank, the main clearing center between the Foreign Trade Bank and American counterparties, was instrumental in the Lend-Lease program, providing a new avenue for economic ties between the United States and the Soviet Union.
