How Big Oil Conquered the World (Corbett Report Documentary)

How Big Oil Conquered the World (Corbett Report Documentary)

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[Applause] high oil prices helped exxon mobil boost its profits to nearly 11 billion dollars in the latest quarter shell is the latest oil company to report a big rise in profits thanks to higher oil prices speculators to profit is surely dwarfed by the ability of oil producing nations to profit from a higher price of oil maybe the easiest way for these guys to make the money manipulate oil back above 50 even 60 dollars
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oil from farm to pharmaceutical diesel truck to dinner plate pipeline to plastic product it is impossible to think of an area of our modern day lives that is not affected by the petrochemical industry the story of oil is the story of the modern world parts of that story are well known rockefeller and standard oil the internal combustion engine and the transformation of global transport the house of sod and the oil wars in the middle east other parts are more obscure the quest
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for oil and the outbreak of world war one the petrochemical interests behind modern medicine the big oil money behind the green revolution in the gene revolution but that story properly told begins somewhere unexpected not in pennsylvania with the first commercial drilling operation in the first oil boom but in the rural backwoods of early 19th century new york state and it doesn't start with crude oil or its derivatives but a different product altogether snake oil dr bill livingston
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celebrated cancer specialist was the very image of the traveling snake oil salesman he was neither a doctor nor a cancer specialist his real name was not even livingston more to the point the rock oil tonic key pond was a useless mixture of laxative and petroleum and had no effect whatsoever on the cancer of the poor townsfolk he conned into buying it he lived the life of a vagabond always on the run from the last group of people he had fooled engaged in ever more outrageous deceptions to make sure that the past wouldn't catch up with him he abandoned
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his first wife and their six children to start a bigamous marriage in canada at the same time as he fathered two more children by a third woman he adopted the name livingston after he was indicted for raping a girl in cayuga in 1849 when he wasn't running away from them or disappearing for years at a time he would teach his children the tricks of his treacherous trade he once bragged of his parenting technique i cheat my boys every chance i get i want to make him sharp a towering man of over six feet and with natural good
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looks that he used to his advantage he went by big bill others less generously called him devil bill but his real name was william avery rockefeller and it was his son john d rockefeller who would go on to found the standard oil monopoly and become the world's first billionaire the world we live in today is the world created in devil bill's image it's a world founded on treachery deceit and the naivety of a public that has never wised up to the parlor tricks that the rockefellers and their ilk have been using
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to shape the world for the past century and a half this is the story of the oligarchy titusville 1857 a most unlikely man lights from a railway car into the midst of this sleepy western pennsylvania town on the shores of oil creek colonel edwin drake he's from the pennsylvania rock oil company and he's here on a mission to collect oil like dr bill drake isn't really a colonel
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the title is bestowed on him by george bissell and james townsend a lawyer and a banker who started the pennsylvania rock oil company after they discovered they could distill the region's naturally occurring seneca oil into lamp oil or kerosene drake is actually an unemployed railroad conductor who talked himself into a job after staying at the same hotel as bissell the year before calling him a colonel it is hoped will help win the respect of the locals the locals think he's crazy anyway seneca oil is indeed plentiful
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bubbling out of seeps and collecting in the creek but other than as a cure-all medicine or grease for the local sawmills machinery it's hardly seen as something valuable in fact it can be a downright nuisance contaminating brinewells that supply pittsburgh's booming salt industry still drake has a task to complete finding a way to collect enough oil to make the distillation of cynical oil into lamp oil profitable he tries everything he can think of the native americans had historically collected the oil by
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damming the creek near a seep and skimming the oil off the top but drake can only collect six to ten gallons of oil a day this way even when he opens up extra seeps he tries digging a shaft but the groundwater floods in too quickly by the summer of 1859 he's desperate drake is running out of ideas bissell and townsend are running out of patience and most importantly the company is running out of funds he turns to uncle billy smith a pittsburgh blacksmith who had experience drilling brine wells with steam-powered
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equipment they get to work drilling down through the shale bedrock to reach the oil it's maddeningly slow work with the crude equipment struggling to get through three feet of bedrock a day by august 27th they've drilled down 69 and a half feet drake has used the last of his funds and bissell and his partners have decided to close up the operation on august 28th they strike oil then on sunday august 28 1859 oil bubbled up the drive mite
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uncle billy and his son sam bailed out several buckets of oil [Music] on monday the very day that colonel drake received his final payment and in order to close down the operation they hitched the walking beam to a water pump and the oil began to flow the first oil was to sell for forty dollars a barrel years later a local newspaper interviewed uncle billy about the day they struck oil i commenced drilling and at four o'clock i struck the oil
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i said to mr drake look there what do you think of this he looked down on the pipe and said what's that i said that was your fortune drake's well proved that by drilling for it oil could be found in abundance and produced cheaply overnight a whole new industry was born before long in millions of homes farms and factories around the world lamps would be lit with kerosene refined from west pennsylvania crude
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when the word came out that drake had struck oil the cry went up throughout the narrow valleys of western pennsylvania their crazy yankees struck oil the crazy yankee had struck oil and it was the first great boom it was like a gold rush down in pennsylvania there is plenty oil they say patrolling overnight the quiet farming backwoods of rural pennsylvania was transformed into a bustling oil region with prospectors leasing up flats towns springing up from nowhere and a forest of percussion rigs covering the land
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the first oil boom had arrived [Music] already poised to make the most of this boom was a young up-and-coming bookkeeper in cleveland with a head for numbers john davison rockefeller he had two ambitions in life to make a hundred thousand dollars and to live to be a hundred years old john d set off to make his fortune in the late 1850s armed with a thousand dollar loan from his father devil bill grandfather never finished high school
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and went to cleveland having borrowed a thousand dollars from his father to start business paid nine percent interest on it incidentally and he read about the oil business just beginning and got interested and came to realize that it was a very volatile business at the time in 1863 seeing the oil boom and sensing the profits to be made in the fledgling business rockefeller formed a partnership with fellow businessman maurice b
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clark and samuel andrews a chemist who had built an oil refinery but knew little about the business of getting his product to market two years later the shrewd john d bought out his partners for seventy two thousand five hundred dollars and with andrews partner launched rockefeller and andrews by 1870 after five years of strategic partnerships and mergers rockefeller had incorporated standard oil the story of the rise of standard oil is an off-told one in a move that would transform the
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american economy rockefeller set out to replace a world of independent oil men with a giant company controlled by him in 1870 begging bankers for more loans he formed standard oil of ohio [Music] the next year he quietly put what he called our plan his campaign to dominate the volatile oil industry into devastating effect rockefeller knew that the refiner with the lowest transportation cost
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could bring rivals to their knees he entered into a secret alliance with the railroads called the south improvement company in exchange for large regular shipments rockefeller and his allies secured transport rates far lower than those of their bewildered competitors by 1879 when rockefeller is 40 he controls 90 of the oil refining in the world within a few years he will control 90 of the marketing of oil and a third of all of the oil wells so this very young
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man controls what is not only a national but an international monopoly in a commodity that is about to become the most important strategic commodity in the world economy [Music] by the 1880s the american oil industry was the standard oil company and standard oil was john d rockefeller but it wasn't long until a handful of similarly ambitious and well-connected families began to emulate the standard oil success story in other parts of the
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globe one such competitor emerged from the caucasus in the 1870s where imperial russia had opened up the vast caspian sea oil deposits to private development two families quickly combined forces to take advantage of the opportunity the nobels led by ludwig nobel and including his dynamite inventing prize-creating brother alfred and the french branch of the infamous rothschild banking dynasty led by alphonse rothschild in 1891 the rothschilds contracted with m samuel
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enco a far east shipping company headquartered in london and run by marcus samuel to do what had never been done before ship their nobel supplied caspian oil through the suez canal to east asian markets the project was immense it involved not only sophisticated engineering to construct the first oil tankers to be approved by the suez canal company but the strictest secrecy if word of the endeavor was to get back to rockefeller through his international intelligence network it would risk bringing the wrath of standard oil which could afford to cut
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rates and squeeze them out of the market in the end they succeeded and the first bulk tanker the murex sailed through the suez canal in 1892 on route to thailand in 1897 m samuel and co became the shell transport and trading company realizing that reliance on the rothschild nobel caspian oil left the company vulnerable to supply shocks shell began to look to the far east for other sources of oil in borneo they ran up against royal dutch petroleum established in the hague in 1890 with the support of king william
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iii of the netherlands to develop oil deposits in the dutch east indies the two companies fearing competition from standard oil merged in 1903 into the asiatic petroleum company jointly owned with the french rothschilds and in 1907 became royal dutch shell another global competitor to the standard oil throne emerged in iran at the turn of the 20th century in 1901 millionaire socialite william knox darcy negotiated an incredible concession with the king of persia exclusive rights to prospect for oil
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throughout most of the country for 60 years after seven years of fruitless search darcy and his glasgow-based partner burma oil were ready to abandon the country altogether in early may of 1908 they sent a telegram to their geologist telling him to dismiss his staff dismantle his equipment and come back home he defied the order and weeks later struck oil burma oil promptly spun off the anglo-persian oil company to oversee production of persian oil the british government took 51 majority
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control of the company's shares in 1914 at the behest of winston churchill then first lord of the admiralty and survives today as bp the rothschilds and nobels the dutch royal family the rockefellers these early titans of the oil industry and their corporate shells pioneered a new model for amassing and expanding fortunes hitherto unheard of they were the scions of a new oligarchy one built around oil and its control from wellhead to pump but it was not
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just about money the monopolization of this the key energy resource of the 20th century helped secure the oligarchs not just wealth but power over the lives of billions billions who came to depend on black gold for the provision of just about every aspect of their daily lives in the late 19th century however it was by no means certain that oil would become the key resource of the 20th century as cheap illumination from the newly commercialized light bulb began to destroy the market for lamp oil the oligarchs were on the verge of
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losing the value from their monopoly but a series of lucky strikes was about to catapult their fortunes even further the very next year after the commercial introduction of the light bulb another invention came along to save the oil industry german engineer carl benz patented a reliable two-stroke internal combustion engine the engine ran on gasoline another petroleum byproduct and became the basis for the ben's motorwagen that in 1888 became the first commercially available automobile in history and with that stroke of luck the
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business that rockefeller and the other oligarchs had spent decades consolidating was saved but more luck was needed to ensure the market for this new engine in the early days of the automobile era it was by no means certain that gas-powered cars would come to dominate the market working models of electric vehicles have been around since the 1830s and the first electric car was built in 1884. by 1897 there was a fleet of all-electric taxis shuttling passengers around london the world land speed record was set by
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an electric car in 1898 by the dawn of the 20th century electric cars accounted for 28 of the automobiles in the united states the electrics had advantages over the internal combustion engine they required no gear shifting or hand cranking and had none of the vibration smell or noise associated with gasoline-powered cars lady luck intervened again on january 10 1901 when prospectors struck oil at spindletop in east texas the gusher blew a hundred thousand barrels a day and set off the next great oil boom
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providing cheap plentiful oil to the american market and driving down gas prices it wasn't long before the expensive low-range electric engines were abandoned altogether and big loud gas-guzzling engines came to dominate the road all fueled by the black gold that standard oil shell gulf texaco anglo-persian and the other oil majors of the time were drilling refining and selling perhaps john d's greatest stroke of luck however was not supposed to be luck at all rockefeller had come under increasing scrutiny by a public outraged by the
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unprecedented wealthy it amassed through standard oil muckraking reporters like ida tarbell began digging up the dirt on his rise to power through railroad conspiracies secret deals with competitors and other shady practices the press pictured him as a colossus with bribed politicians literally in the palm of his hand standard oil was a menacing octopus with its tentacles strangling the lifeblood of the nation hearings began investigations were launched lawsuits were brought against him and then finally in 1911 the supreme
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court made a monumental decision on may 15 1911 the supreme court of the united states declared that standard oil was a monopoly in restraint of trade and should be dissolved [Music] rockefeller heard of the decision while golfing at kaiket with a priest from the local catholic church father jp lennon and rockefeller reacted with amazing diploma he turned to the catholic priest and said father lennon have you some money and the priest was very startled by the
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question and said no and then um he said why and rockefeller replied by standard oil as rockefeller foresaw the individual standard oil companies were worth more than the single corporation in the next few years their shares doubled and tripled in value by the time the reign of cash was over rockefeller had the greatest personal fortune in history nearly two percent of the american economy and it was really losing the anti-trust
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case that converted john d rockefeller into history's first billionaire so that standard oil was punished in the federal anti-trust case but john d rockefeller senior most assuredly was not [Music] to the amazement of the world rockefeller's punishment had in fact been his reward rather than being taken down a pig the splitting up of the standard oil monopoly had launched him as the world's only acknowledged billionaire at a time when the average annual income in america was 520 dollars
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rockefeller's story was perfectly mirrored by the story of colonel edwin drake having struck oil in titusville and given rise to a billion dollar global industry drake had not had the foresight to patent his drilling technique or even to buy up the land around his own well he ended up in poverty relying on an annuity from the state of pennsylvania to scrape together a living and dying in 1880 for the oligarchy the lesson of the rise and rise of rockefeller was obvious the more ruthlessly that monopoly was pursued the tighter that control was
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grasped the greater the lust for power and money the greater the reward would be in the end from now on no invention would derail the oil majors from their quest for total control no competition would be tolerated no threat to the oligarchs would be allowed to rise when asked how he could justify the treachery and deceit with which he had pursued the creation of the standard oil monopoly john d rockefeller is reputed to have said competition is a sin
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this is the mentality of the monopolist and it is this justification framed as religious conviction that drove the oligarchs to so ruthlessly eliminate anyone who would dare rise up as a pretender to their throne ironically it was the competition between the oligarchs in the early 20th century that helped give rise to an early external threat to their empire alcohol fuel as historian lyle cummins has noted of the period the oil trust battles between rockefeller the rothschilds the nobels and marcus samuel's shell
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kept prices in a state of flux and engines often had to be adaptable to the fuel that was available in many areas where oil wasn't available the alternative was alcohol ethyl alcohol had been used as fuel for lamps and engines since the early 19th century although it was generally more expensive alcohol fuel offered a stability of supply that was alluring especially in areas like london or paris that did not have predictable access to oil supplies alcohol has a lower heat value or btu than gasoline
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but a series of tests by the us geological survey in the u.s navy in 1907 and 1908 proved that the higher compression ratio of alcohol engines could perfectly offset the lower heat value thus making alcohol and gasoline engines fuel economy equivalent one early supporter of alcohol fuel was henry ford who designed his model t to run on either alcohol or gasoline sensing an opportunity for new markets to boost the independent american farms that he felt were vital to the nation henry ford told the new york times the
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fuel of the future is going to come from fruit like that sumac out by the road or from apples weeds sawdust almost anything there is fuel in every bit of vegetable matter that can be fermented farmers looking to capitalize on this lobbied for the repeal of a 2.8 cent per gallon alcohol tax that had been opposed to help pay for the civil war they were aided by those who saw fuel alcohol as a way to break the oligarch's monopoly in support of a bill to repeal the alcohol tax president teddy roosevelt
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told the u.s congress in 1906 the standard oil company has largely by unfair or unlawful methods crushed out home competition it is highly desirable that an element of competition should be introduced by the passage of some such law as that which has already passed the house putting alcohol used in the arts and manufactures upon the free list the alcohol tax was repealed in 1906 and for a time corn ethanol at 14 cents a gallon was cheaper than gasoline at 22 cents a gallon
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the promise of cheap unpatentable unmonopolizable fuel production production open to anyone with raw vegetable matter and distill swept the nation but cheap plentiful fuel that can be grown and produced locally and independently is not what the oligarchs had in mind a 1909 usgs report comparing gas and alcohol engines had noted that a significant point in alcohol fuel's favor was that there were fewer restrictions on alcohol engines for the oligarchs the answer was simple
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find a way to place greater restrictions on alcohol engines thankfully for them the answer to their problem was already gaining popular support in the 19th century america had a drinking problem by 1830 the average american over 15 years old drank seven gallons of pure alcohol per year three times higher than today's average this led to the first anti-alcohol movements in the 1830s and 1840s and the formation of the prohibition party in 1869 and the women's christian temperance
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union in the 1870s the movement enjoyed widespread and growing support but had few political successes maine flirted with prohibition by outlawing the sale and manufacture of liquor in 1851 but the ban only lasted five years this changed with the formation of the anti-saloon league in standard oil's birth state of ohio in 1893 the asl was started by john d rockefeller's longtime personal friend howard hyde russell and was bankrolled in part by generous annual donations from rockefeller himself
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the asl with rockefeller's backing quickly became the driving force behind a national movement to outlaw the production and sale of alcohol rockefeller was a teetotaler himself not from moral concern but because he was afraid that good cheer among friends would lead to his downfall in business stephen harkness one of the silent partner investors in standard oil and a director in the company until his death had caught rockefeller's eye when he made a fortune buying up whiskey in advance of a new excise tax that he had been tipped about and selling it at a huge profit after
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the tax kicked in no rockefeller and standard oil were not concerned about the moral state of the nation except as far as it impacted their bottom line but when prohibition did come in 1920 it had an interesting side effect although it didn't ban the use of ethanol as a fuel directly it did lead to increasingly burdensome restrictions requiring producers to add petroleum products to their ethanol to make it poisonous before it could be sold alcohol fuel now completely unable to compete with gasoline
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was abandoned altogether by the automobile industry another existential threat to the vast fortunes of the early oligarchs was to require an even greater effort at social engineering public transportation by the end of world war one private car ownership was still a relative rarity only one in 10 americans owned a car rail was still the transportation of choice for the vast majority of the public and city dwellers in most major cities relied on electric trolley networks to transport them around town
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in 1936 general motors formed a front company national city lines along with firestone tire and standard oil of california to implement a process of bustion scrapping streetcars and tearing up railways to replace them with gm's own buses running on standard oil supplied diesel the plan was a remarkably successful as historian and researcher f william engdahl notes in myths lies in oil wars by the end of the 1940s gm had bought and scrapped over 100 municipal electric
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transit systems in 45 cities and put gas-burning gm buses on the streets in their place by 1955 almost 90 percent of the electric streetcar lines in the united states had been ripped out or otherwise eliminated the cartel had been careful to hide their involvement in national city lines but it was revealed to the public in 1946 by an enterprising retired naval lieutenant commander edwin j quimby he wrote a manifesto exposing what he called a careful deliberately planned campaign to swindle you out of your most
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important and valuable public utilities your electric railway system he uncovered the oligarch's stock ownership of national city lines and its subsidiaries and detailed how they had step by step bought up and destroyed the public transportation lines in baltimore los angeles st louis and other major urban centers quinby's warning caught the attention of federal prosecutors and in 1947 national city lines was indicted for conspiring to form a transportation monopoly and conspiring to monopolize sales of buses and supplies
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in 1949 gm firestone standard oil of california and their officers and corporate associates were convicted on the second count of conspiracy the punishment for buying up and dismantling america's public transportation infrastructure a five thousand dollar fine h.c grossman who had been the director of pacific city lines when it oversaw the scrapping of los angeles hundred million dollar pacific electric system was fined exactly one dollar unsurprisingly gm and its associates did
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not remain in the doghouse for long in 1953 president eisenhower appointed charles wilson then the president of general motors as secretary of defense wilson with francis du pont of the rockefeller-connected dupont family as chief administrator of federal highways oversaw one of the largest public works projects in american history the creation of the interstate highway system with a war era excise tax on train tickets still in place and federally funded highways and airports providing cheaper alternatives
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rail travel declined a startling 84 percent between 1945 and 1964. this social engineering paid off well for standard oil in its growing list of petrochemical associates in the two and a half decades after the outbreak of world war ii vehicle production in detroit almost tripled from 4.5 million cars a year in 1940 to over 11 million in 1965. as a result sales of refined gasoline over the same period rose 300 percent
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but rockefeller was not the only oligarch working to crush all opposition to his monopoly across the pond the european oil guards were working to protect their own oil investments from upstart competitors in 1889 a consortium of german investors led by siemens deutsche bank obtained a concession from the turkish government for extension of a railway line connecting berlin to basra on the persian gulf via baghdad in what was then part of the ottoman empire the berlin baghdad railway concession was for 99 years and came with mineral rights for 20
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kilometers on either side of the line an especially lucrative deal since the rail cut right through the heart of the still untapped mesopotamian oil region south of mosul along the tigris river for the powers behind the british empire concerned with the military rise of germany this deal was unacceptable well germany in the end of the 19th century was looking for outlets for its exports its industrial exports as the german economy was growing like
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china is growing in the last 30 years and they decided that turkey would be an ideal strategic trade partner for germany and georg von siemens one of the directors of deutsche bank came up with a strategy to extend a railway from berlin all the way down to baghdad which was then part of ottoman the ottoman empire baghdad and iraq today
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near the persian gulf and german military began training the turkish military the german industry began investing in turkey they saw a huge potential market to begin bringing turkey into the 20th century economically deutsche bank also negotiated mineral rights i think it was 20 kilometers on either side of the railway
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and it was already known in that mosul and these other areas contained huge petroleum deposits well why is that significant at the end of the century 19th century jack fisher the lord of the admiralty and the head of the royal navy uh advocated the conversion of the british navy from coal-fired to oil fire that it would have a qualitative strategic improvement in their
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every aspect of warship design and since britain didn't know that they had any oil back then they went to persia and swindled the shaw at that time out of oil rights in persia they went to kuwait and backed a coup d'etat of the al-sabah family to be a british pawn and they literally wrote a contract with him that nothing that kuwait does with the
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outside world will be done without approval of the british governor and kuwait was known to have oil and lying right on the persian gulf well the british looked at this railway plan of the germans going right down to baghdad and said my god you can put soldiers on rail cars and bring them down and threaten the oil lifeline of the british navy this is a strategic move by the germans it also would make
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germany independent of the british control of the seas the british oligarchs including the british crown with its hidden controlling stake in anglo-persian oil and the rothschilds merchant marcus samuel at royal.shell sought to counter this german threat to their commercial and strategic interests they used armenian-born naturalized british citizen kalust golbekian the architect of the royal dutch shell merger in order as he later recalled to see british influence get the upper hand in turkey against the germans
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if that was his task it was a remarkable success in 1909 the british set up the turkish national bank which was turkish in name only founded by london banker sir edward castle and with directors like hugo bering of the bering's banking family castle himself and golbankian the bank set up the turkish petroleum company in 1912 formed explicitly to exploit the petroleum-rich oil fields of iraq then part of the ottoman empire golbenkian brokered a deal that forced deutsche bank with its 40 kilometer concessions along
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the oil rich baghdad railway line into a junior partnership in the company the stock was split so the british government's anglo-persian oil company owned half the shares with royal dutch shell and deutsche bank splitting the other half their plan to take over germany's turkish oil interests had been successful but in an amazing irony it didn't even matter gulbenkian finished negotiations for the iraqi oil concession on june 28 1914 the same day archduke ferdinand was shot in sarajevo an alliance the british had been brokering for years to constrain the
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rising german threat an alliance involving france and russia kicked into motion and the world was engulfed in war by the end of world war one the british and their allies had taken over iraq and its oil deposits anyway germany had been completely cut out and golbenkian their scheming servant received five percent of all oil field proceeds in the newly minted country as the century wore on the oil industry grew beyond the control of the handful of families that had dominated it since its inception oil deposits were located around the
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globe and the resources of entire nation-states were marshaled to control them now threats to the oligarchs and their interests required multilateral multinational responses and the consequences of those deals were felt worldwide the story of the oil shock of 1973 as it has been delivered to us by the history books is well known by the late 1960s the nation relied on imported oil to keep the economy strong then in the early 1970s oil dependent
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america's nightmares came true 13 oil producing countries in the middle east and south america formed opec the organization of petroleum exporting countries in 1973 opec placed an oil embargo on the us and other nations that had supported israel against the arab states and the yom kippur war the american economy went into a tail spin as gas shortages gripped the nation
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few however know that the crisis and its ensuing response was in fact prepared months ahead of time at a secret meeting in sweden in 1973. the meeting was the annual gathering of the bilderberg group a secret of cabell formed by prince bernhard of the netherlands in 1954 the dutch royal family not only gave its royal imprint to royal dutch petroleum they are still rumored to be along with the rothschilds one of the largest shareholders in royal dutch shell from the days when queen wilhelmina's anglo-dutch petroleum holdings and other
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investments made her the world's first female billionaire right through to today bernhard's guest list at the bilderberg group reflected his position in the oligarchy alongside him at the swedish conference were david rockefeller of the standard oil dynasty and his protege henry kissinger baron edmund rothschild eg collado the vice president of exxon sir dennis greenhill director of british petroleum and garrett a wagner president of bernard's own royal dutch shell at the meeting in sweden held five months before the oil crisis began
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the oligarchs and their political and business allies were planning their response to a monetary crisis that threatened the world dominance of the us dollar under the bread and wood system negotiated in the final days of world war ii the us dollar would be the backbone of the world monetary system convertible to gold at 35 dollars per ounce with all other currencies pegged to it increasing us expenditures in vietnam and decreasing exports caused germany france and other nations to start demanding gold for their dollars
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with the federal reserve's official gold holdings plunging and unable to stem the tide of demand nixon abandoned breton woods in august 1971 threatening the dollar's position as the world reserve currency accordingly i have directed the secretary of the treasury to take the action necessary to defend the dollar against the speculators i have directed secretary connelly to suspend temporarily the convertibility of the dollar into gold or other reserve assets except in amounts and conditions
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determined to be in the interest of monetary stability and in the best interest of the united states as leaked documents from the 1973 bilderberg meeting show the oligarchs decided to use their control over the flow of oil to save the american hegemon acknowledging that opec could completely disorganize and undermine the world monetary system the bilderberg attendees prepared for an energy crisis or an increase in energy costs which they predicted could mean an oil price between 10 and 12 dollars
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a staggering 400 percent increase from the current price of three dollars and one cent per barrel five months later bilderberg attendee and rockefeller protege henry kissinger acting as nixon's secretary of state engineered the yom kippur war and provoked opec's response an oil embargo of the us and other nations that had supported israel on october 16 1973 opec raised oil prices by 70 percent at their december meeting the shah of iran demanded and received a further
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raise to 11.65 cents a barrel or 400 percent of oil's pre-crisis price when asked by saudi king faisal's personal emissary why he had demanded such a bold price increase he replied tell your king if he wants the answer to this question he should go to washington and ask henry kissinger in the second move of the operation kissinger helped negotiate a deal with saudi arabia in exchange for u.s arms and military protection the saudis would price all their future oil sales in dollars
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and recycle those dollars through treasury purchases via wall street banks the deal was a bonanza for the oligarchs not only did they get to pass the price increases on to the consumers but they benefited from the huge flows of money into their own banks the shah of iran parked the national iranian oil companies revenues in rockefeller's own chase bank revenues that reached 14 billion dollars per year in the wake of the oil crisis with the creation of this new system the petrodollar
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the oligarchs had reached unprecedented levels of control over the economy not only that they had backed the world monetary system with their commodity oil and brought potential competition from upstart producer nations under their control all in one step but for the insatiable appetites of these monopolist titans mere control over the world's monetary system was not enough in the 19th century railroad conspiracies and predatory pricing had
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been enough to assure the oligarchs monopoly but by the time that the british crown the dutch royal family the rothschilds and the other european oligarchs began opening up the middle east and the far east to oil exploration in the early 20th century the goal was no longer to maximize profits or control the oil industry it was not even to control international diplomacy it was to control and shape the world itself its resources its environment and its people in order to achieve this goal the
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oligarchy would need a facelift in the current age with the rockefeller name now more likely to be associated with rockefeller plaza or rockefeller university than standard oil it is difficult to understand just how hated john d was in his own day he was the head of the standard oil hydra an octopus strangling the world in his tentacles a cutthroat gardener pruning the competitors from the flower of his oil monopoly as one of the richest men the world had ever known he was an easy target for the
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average working man's frustration and a magnet for the poor seeking help he received on average 50 to 60 000 letters a month asking for help dozens of people followed him in the street literally crowds stood around the standard oil offices waiting for him to come out you know little children painfully thin you know crying in the street and so on
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rockefeller felt overwhelmed besieged by the downtrodden despised by the working man hounded by ida tarbell in the muckraking press jaundi had the mother of all pr problems the answer was simple invent the pr industry he hired ivy ledbetter lee a journalist-turned-communications expert who invented the modern public relations industry to burnish the rockefeller's tarnished image it was lee that suggested giving the family name to rockefeller center and filming john d handing out dimes in
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public an early master of public relations lee used the media which the muckrakers had used to disgrace rockefeller to turn him into a sympathetic figure [Music] ivy lee recognized early the power of the new moving picture and used newsreels to show a remarkably benevolent rockefeller i am very grateful to you and to a host of people who are so kind and good to me all the time why because
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you're so good to everybody yes you are as ivy lee began to kind of control his public image he became oddly a kind of american character and people kind of warmed to him in a bizarre sort of way it was like having frankenstein on the loose walking around new york city or something like that with a cane and a long hat although this plane never takes off this photo opportunity was presented as seniors first flight perhaps ivy league's most brilliant public relations move was the casting of rockefeller as the man who gave out
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dimes don't you give a dime mr acapella you better die thank you sir thank you very much i consider myself thank you for the ride i consider myself more than amply faded bless you bless you thank you these pr stunts seem obvious and ham handed by today's standards but they were effective enough to this day people leave dimes on the stone marker at the base of the 70-foot egyptian obelisk that towers over jaundi's final resting
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place in cleveland's lakeview cemetery but it was not stage managed photo opportunities like these that transformed rockefeller into a public hero in order to win the public over he was going to have to give them what they wanted and what they wanted wasn't difficult to understand money but just as his father devil bill had taught him to do in all his business dealings rockefeller made sure to get the better end of the bargain he would donate his great wealth to the
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creation of public institutions but those institutions would be used to bend society to his will as every would-be ruler throughout history has realized society has to be transformed from the ground up americans in the 19th century still prized education and intellectual pursuits with the 1840 census finding unsurprisingly that the united states a nation that had been mobilized by tracks like thomas payne's remarkably popular common sense was a nation of readers with a
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remarkable 93 percent to 100 literacy rate before the first compulsory schooling laws in massachusetts in 1852 education was private and decentralized and as a result classical education including study of greek and latin and a solid grounding in history and science was widespread but a nation of individuals who could think for themselves was anathema to the monopolists the oligarchs needed a massive obedient workers an entire class of people whose intellect was developed just enough to
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prepare them for lives of drudgery in a factory into the mid-step john d rockefeller with his first great act of public charity the establishment of the university of chicago he was aided in this task by frederick taylor gates a baptist minister that rockefeller befriended in 1889 and who would go on to be john d's most trusted philanthropic advisor gates would go on to write a short tract the country school of tomorrow that laid out the rockefeller plan for education in our dream we have limitless resources
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and the people yield themselves with perfect decility to our molding hand the present educational conventions fade from our minds and unhampered by tradition we work our own goodwill upon a grateful and responsive folk we shall not try to make these people or any of their children into philosophers or men of learning or science we are not to raise up from among them authors orators poets or men of letters we shall not search for embryo great artists painters musicians nor will we cherish even the humbler ambition to raise up from among them
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lawyers doctors preachers politicians statesmen of whom we now have ample supply although rockefeller's resources weren't exactly limitless they might as well have been in 1902 he established the general education board to help implement gates vision for the country school of tomorrow with a staggering 180 million dollar endowment the rockefeller influence on education was felt almost immediately and it was amplified by help from fellow monopolists of the era who were approaching the topic of philanthropy
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from the same angle although best known as a steel magnate andrew carnegie's fortune started on the railroads transporting rockefeller's standard oil around the country and was greatly magnified by a lucrative investment in property near oil creek that provided steady profitable oil sales in 1905 he established the carnegie foundation for the advancement of teaching a tax-free foundation through which carnegie and his appointees could direct the development of the education system in the united states and eventually worldwide
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in 1910 rockefeller followed suit by establishing the rockefeller foundation which became the tax-free umbrella organization for his philanthropic ambitions as the reese committee a congressional investigation into the activities of these tax-free foundations in the 1950s discovered it wasn't long before carnegie's endowment approached rockefeller's foundation with a proposal to cooperate on their shared desire to transform the american education system in their own image norman dodd the director of research for the congressional committee who was
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granted access to the carnegie endowments board minutes explains so they approach the rockefeller foundation with the suggestion that that portion of education which is could be considered domestic be handled by the rockefeller foundation and that portion which is international should be handled by the endowment and they then decide that the key to the
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success of these two operations lay in an alteration of the teaching of american history so they approach four of the then most prominent teachers of american history in the country people like charles and mary byrd and their suggestion to them is will they alter the manner in which they present this subject and they get
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turned down flat so they then decide that it is necessary for them to do as they say build our own stable of historians and and then they approach the guggenheim foundation which specializes in fellowships and say when we find young men in the process of studying for doctorates in the field of american history and we feel that they are uh the right
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caliber will you grant them fellowships on our say so and the answer is yes so under that condition eventually they assembled 20 and they take this 20 potential teachers of american history to london and they're they're briefed into what is expected of them when as and if they secure appointments in keeping with the
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doctorates they will have earned and um that new that group of 20 historians ultimately becomes the nucleus of the american historical association and then toward the end of the 1920s the endowment grants to the american historical association four hundred thousand dollars for a study of our history in a manner which points
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to what can this country be can it look forward to in the future and that culminates in a seven volume study book study the last volume of which is of course an essence and summary of the contents of the other six and the essence of the last volume is the future of this country belongs to collectivism
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administered with characteristic american efficiency [Music] with this base for transformation firmly established the rockefeller foundation and like-minded organizations embarked on a program so ambitious that it almost defies comprehension they transformed the practice of medicine as usual the oligarchs that funded this change were also there to profit from it and once again john d took his cue from devil bill's example william rockefeller had called his brand
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of snake oil nujol for new oil and standard oil spun off nujol as a laxative under their stanco subsidiary manufactured on the same premises as flit an insecticide also derived from standard oils by-products new joel sold at the druggist for 28 cents per six ounce bottle it cost standard oil less than one-fifth of a cent to manufacture pharmaceuticals provided a lucrative new opportunity for the oligarchs but in a turn-of-the-century america that was still largely based on naturopathic
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herbal remedies it was a tough sell the oligarchy went to work changing that in 1901 jaundi established the rockefeller institute for medical research the institute recruited simon flexner a pathology professor at the university of pennsylvania to serve as its director his brother abraham was an educator who was contracted by the carnegie foundation to write a report on the state of the american medical education system his study the flexner report along with the hundreds of millions of dollars that
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the rockefeller and carnegie foundations were to shower on medical research in the coming years resulted in a sweeping overhaul of the american medical system naturopathic and homeopathic medicine medical care focused on unpatentable unmarketable natural remedies and cures was now dismissed as quackery only drug-based allopathic medicine requiring expensive medical procedures and lengthy hospital stays was to be taken seriously [Music] the fortunes of carnegie morgan and
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rockefeller financed surgery radiation and synthetic drugs they were to become the economic foundations of the new medical economy the takeover of the medical industry was accomplished by the takeover of the medical schools well the people that were talking about rockefeller and carnegie in particular came to the picture and said we will put up money they offered tremendous amounts of money to the schools
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that would agree to cooperate with them the donor said to the schools we're giving you all this money now would it be too much to ask if we could put some of our people on your board of directors to see that our money is being spent wisely almost overnight all of the major universities received large grants from these sources and also accepted one two or three of these people that i mentioned on their board of directors
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and the schools literally were taken over by the financial interests that put up the money now what happened as a result of that is that the schools did receive uh an infusion of money they were able to build new buildings they were able to add expensive equipment to their laboratories they were able to hire top-notch teachers but at the same time as doing that they skewed the whole thing in the direction of pharmaceutical drugs
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that was the efficiency in philanthropy the doctors from that point forward in history would be taught pharmaceutical drugs all of the great teaching institutions in america were captured by the pharmaceutical interests in this fashion and it's amazing how little money it really took to do it [Music] the oligarchy birthed entire medical industries from their own research centers and then sold their own products from their own petrochemical companies as the cure
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it was frank howard a standard oil of new jersey executive who would go on to persuade alfred sloane and charles kettering to donate their fortunes to the cancer center that would then bear their name as director of research at sloan kettering howard appointed cornelius rhodes a rockefeller institute pathologist to develop his wartime research on mustard gas for the us army into a new cancer therapy under roads leadership nearly the entire program and staff of the chemical war service was reformed into the sloan-kettering drug development program where they worked on converting mustard
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gas into chemotherapy and once again the rockefeller's own snake oil was being sold as a cancer cure-all the oligarch's interest in the burgeoning pharmaceutical industry converged in companies like ig farben a drug and chemical cartel formed in germany in the early 20th century royal dutch's own prince bernhard served on an ig farben subsidiaries board in the 1930s and the cartels american operation set up in cooperation with standard oil included on its board standard oil president walter tegel
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as well as paul warburg of [ __ ] loben company itself headed by jacob schiff of the rothschild broker family at its height ig farben was the largest chemical company in the world and the fourth largest industrial concern in the world right behind standard oil of new jersey the company was broken up after world war ii but like standard oil its various pieces remained intact and today basf one of its chemical offshoots remains the largest chemical company in the world while baer and sanofi two of its
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pharmaceutical offshoots are among the largest pharmaceutical companies in the world not content merely to monopolize the fields of education and medicine the same oligarchical interests banded together to take control of america's finances in 1910 john d rockefeller jr's own father-in-law senator nelson aldrich frank vanderlip of the national citibank and paul warburg as well as various agents of j.p morgan met in complete secrecy on jekyll island to hammer out the details of what would go on to become the federal reserve
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america's central bank the fed established in 1913 would be run by hand-picked appointees of the oligarchy and their banking associates including perhaps inevitably standard oil president and american ig director walter tegel the rockefeller family would go on to formally enter the banking field in the 1950s when james stillman rockefeller the grandson of jaundi's brother was appointed director of national citibank meanwhile jaundi's own grandson david rockefeller would go on to take over chase manhattan bank
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the long-time banking partner of the standard oil empire in this move the rockefeller story perfectly mirrored that of their fellow oligarchs the rothschilds whereas the rothschild had supplemented their banking fortune with their oil interests the rockefellers supplemented their oil fortune with banking interests springboarding from success to success as they consolidated monopolies across every field of human activity the oligarchs ambitions became even larger this time their goal was to consolidate
01:00:04
control over the very food supply of the world itself and once again they would use philanthropy as the cover for their business takeover the green revolution began in 1943 when plant geneticist norman borlaug and a team of researchers arrived on mexican soil his goal was to improve agricultural techniques and biotechnological methodologies which in turn would help alleviate starvation and improve the living quality
01:00:34
of developing nations creating new genetically modified strains of wheat rice maize and other crops borlaug planned to win the battle against world hunger the hope was that these new crops and farming techniques would rescue third world countries from the brink of starvation that's exactly what happened the agricultural innovations brought to the poverty-stricken countries gave the farmers the skills and resources necessary to sustain themselves this triggered a chain of events that
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would allow these once-struggling nations to survive agricultural exports soared in quantity and diversity and allowed the countries to become self-sufficient as the genetically modified crops thrived farmers were able to use their increased income to purchase newer and superior farming machinery this increase in revenue made farming easier more reliable and more efficient the green revolution led to the modernization of agriculture and has had a profound social economic
01:01:36
and political impact on the world the mexican government turned to the rockefeller foundation in their endeavor to nourish mexico through agriculture [Music] norman borlaug needless to say was a researcher for the rockefeller foundation and the green revolution for whatever increase in yields it brought about also created markets for the oligarch's own interest in the petrochemical fertilizer industry and gave rise to the abcd seed cartel of archer daniels midland bunge cargill and louis dreyfus these
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companies along with their associated interests in the food packaging and processing industry formed the core of american agribusiness a concept developed at harvard business school in the 1950s with the help of research conducted by vasily leontyth for the rockefeller foundation the american agribusiness giants shared a common goal the transformation of third world agriculture into a captive market for their goods from this perspective the project was a runaway success by the 1970s the rockefeller standard
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oil network and its cronies in the nitrogen fertilizer industry including dupont dow chemical and hercules powder had broken into markets around the world markets conveniently forced open for them by the us government itself under president johnson's food for peace program which mandated the use of petrochemical dependent agricultural technologies by aid recipients unable to afford these new technologies themselves the impoverished third world beneficiaries of this revolution relied on loans from the international monetary fund in the world bank handled by rockefeller's own chase
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manhattan bank and guaranteed by the u.s government the real costs of the green revolution economic agricultural and environmental are seldom tallied access to these debt-financed petrochemical dependent technologies exacerbated the difference between the rich land-owning class and the landless peasants in countries like india where land reform and abolition of usury were dropped from the political agenda after the green revolution took over even then the revolution's main success its increase in agricultural yields
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has been oversold yield growth across india actually slowed after the introduction of agribusiness the environmental destruction is even more devastating an overview in the december 2000 edition of current science notes the green revolution has not only increased productivity but it has also produced several negative ecological consequences such as depletion of lands decline in soil fertility soil salinization soil erosion deterioration of environment health hazards poor sustainability of agricultural lands
01:04:10
and degradation of biodiversity indiscriminate use of pesticides irrigation and imbalanced fertilization has threatened sustainability the rockefeller foundation even acknowledges the critiques of the green revolution it funded into existence insisting that current initiatives take into account lessons learned even so the foundation continues to fund research and write reports on how to improve prospects for agribusiness investment in its target markets as egregious as the green revolution was and continues to be
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however in many ways it was just the prelude to an even more ambitious project the gene revolution now the project is not merely to monopolize the technologies supplies and chemical inputs for agriculture worldwide but to monopolize the food supply itself through the replacement of the world's natural seeds with patentable genetically modified crops the players involved in this gene revolution are almost identical to the players in the green revolution with ig farben offshoots bayer crop science and basf plant science
01:05:13
mingling with traditional oligarch associate companies like dow agroscience dupont biotechnology and of course monsanto all funded by the rockefeller foundation and fellow philanthropists at the ford foundation the bill and melinda gates foundation and like-minded organizations the convergence of corporate philanthropic governmental and intergovernmental interests in promoting gm crops around the world can be seen in the bewildering array of research institutes industry associations and consultative groups devoted to the case
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the rockefeller-funded international rice research institute the rockefeller monsanto usaid brainchild international service for the acquisition of agrobiotec applications the rockefeller ford world bank created consultative group of international agricultural research and dozens of other bland benign sounding organizations research and promote gm crops in target markets around the globe with the profits ending up in the oligarch's coffers a representative example of this story is the agribusiness neocolonization of
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argentina where monsanto ran an elaborate bait and switch to get the country hooked on its genetically modified roundup ready soybeans before demanding royalties on the crops that were by then already growing dupont then took over magnanimously beginning a protein for life program to foist their own gm soybeans on the country's poor the same scene has played itself out in country after country where cartel developed gm crops are foisted on emerging economies through food aid usually during times of famine when those countries are especially vulnerable
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only a handful of countries like zambia or angola have outright rejected this gmo takeover of their food supply generously subsidized by the us government to the benefit of the agribusiness cartel from cutthroat pioneers of the early oil industry to machiavellian social engineers and geopolitical schemers the oligarchs have come a long way since the days of devil bill's snake oil cure-alls but his use of every form of deception and trickery to swindle the public informed how jaundi and the rest of the
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oligarchs built up their business interests as the 20th century drew to a close it was obvious that for the powerful cartel that built the oil industry the rockefellers the rothschilds the british and dutch royal families it was no longer about oil if it ever really was the takeover of education of medicine of the monetary system of the food supply itself showed that the aim was much greater than a mere oil monopoly it was the quest to monopolize all
01:08:00
aspects of life to erect the perfect system of control over every aspect of society every sector from which any threat of competition to their power could emerge they had been remarkably almost unbelievably successful from oil well to gas pump farm to fork hospital to pharmaceutical drill rig to dollar bill there was almost no aspect of society that was not under their control but the oligarchs are not done yet their
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next project launched in the late 20th century is almost too ambitious to be comprehended it is not about oil it is not about money it is about the monopolization of life itself they have spent decades preparing the path for this takeover and marshalled their mind-boggling resources in service of the task and the vast majority of the world's population still playing the shell game that the oligarchs perfected and abandoned long ago
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are about to fall right into their hands yet again ladies and gentlemen the battle against climate change is surely the most defining and pivotal challenge of our times even in a world full of daunting perils and crises it is hard to imagine anything that poses a greater challenge and opportunity for humanity the negative impact of population growth on all of our planetary ecosystems
01:09:34
is becoming appallingly evident the science is unequivocally true and that that there is a price to carbon in their future what do you see as the biggest challenges in in conservation yeah the the growing human population because of where we are there's nothing else we have to start spending money um you know fast on the solutions that we have in hand to try and help these countries which are already seeing the effects of climate change
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today and seeing the effects of our consumption basically david rothschild thank you so much for joining us here on bloomberg every live yankee from north from east and west they come for petroleum oil oil oil oil oh petroleum oil oil oil [Music] the corbett report is brought to you by
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the corbett report subscriber a weekly newsletter featuring james corbett's international forecaster editorial recommended reading and viewing discounts on corbett report dvds and once a month a subscriber only video sign up today to start receiving your copy at corbettreport.com [Music] support you

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