The idea that the United States intervened in both World Wars purely for moral reasons is a fairy tale meant for children. In truth, it was the economic interests of the USA’s super-rich that significantly influenced the nation’s involvement and actions during World War I and World War II.
Of course, there might have been some moral aspects. But the world order was, is and will be built by complex constellations of patron-client relationships.
No matter how wars are cruel, the interest of the super-rich families and their bankers remains intact.
US’s economic interest in World War 1
In Nomi Prins’ All the Presidents’ Bankers, the influence of powerful bankers (and the USA’s super-rich families behind) over key global events, including World War I, is thoroughly examined. Prins reveals how a close-knit group of elite bankers, particularly those associated with J.P. Morgan & Co., played a significant role in shaping U.S. involvement in World War I. These bankers not only influenced domestic economic policies but also had considerable sway over foreign policy decisions.
During World War I, J.P. Morgan & Co. became the primary financial agent for the British and French governments. They faciliated massive loans and acting as the official purchasing agent for the Allies in the United States. This arrangement allowed the Allies to continue purchasing weapons and other critical supplies, despite their dwindling financial resources. The relationship between the U.S. banking sector and the Allied powers was so intertwined that it effectively pulled the United States closer to joining the war. And American financial interests became deeply linked with the success of the Allies.
USA’s super-rich: No altruism
Prins highlights how this financial support was not purely altruistic. It was driven by profit motives and the desire to protect the vast loans that U.S. banks had extended to the Allied nations. The survival of these loans- and the financial stability of the banks that issued them – became increasingly dependent on an Allied victory. This financial entanglement, combined with the broader geopolitical interests of maintaining a balance of power in Europe, helped push the U.S. toward entering the war in 1917.
In addition to Prins’ work, other sources such as Ferdinand Lundberg’s America’s 60 Families also emphasize the outsized influence of the USA’s super-rich during this period. Lundberg documents how a small number of powerful families and their associated banking institutions controlled significant portions of the American economy. They also used their influence to shape both domestic and international policies to their advantage, including during wartime.
New central bank, ties even closer
This collusion between Wall Street (the USA’s super-rich) and Washington had long-lasting effects. This cemented the role of financial institutions in guiding U.S. foreign policy. The aftermath of World War I saw these relationships grow even stronger, as bankers continued to shape the global financial system through the creation of institutions like the Federal Reserve, the International Monetary Fund (IMF), and the World Bank. These entities further extended the influence of U.S. financial power globally. It ensured that the interests of America’s banking elite were deeply embedded in the fabric of international relations.
In summary, the influence of bankers on World War I was profound, driven by both financial interests and a desire to maintain global stability in ways that aligned with American economic power. This legacy has had enduring impacts on U.S. foreign policy, highlighting the close and often symbiotic relationship between Wall Street and the White House. (source, source, source)
Post World War 1’s order
Following the devastation of World War I, Europe was in dire economic straits, burdened with massive debts and the need to rebuild shattered economies. The Treaty of Versailles imposed harsh reparations on Germany, which further strained the European economy. American bankers, particularly those associated with J.P. Morgan & Co., stepped in to offer financial solutions, albeit with significant self-interest. The Dawes Plan of 1924 and the Young Plan of 1929, both orchestrated with substantial involvement from American bankers, restructured Germany’s reparations payments. And provided loans that temporarily stabilized the German economy. These plans also allowed American banks to exert considerable influence over European financial systems, as the loans effectively tied European economies to American capital.
Lundberg’s America’s 60 Families describes how these banking families used their financial power to not only shape the post-war economic order. But also to secure their own interests. They designed the plans crafted in the post-war period to ensure that European nations could repay their debts to American banks. Thus safeguarding the banks’ investments. This interwar financial arrangement set the stage for the economic instability of the late 1920s and early 1930s, leading to the Great Depression.
The USA’s super-rich: The creation of new financial Institutions
Prins also details how the post-World War I period saw the creation of new financial institutions. These were heavily influenced by American financial elites. The establishment of the Federal Reserve in 1913, before the war, had already centralized financial power in the U.S. And after the war, American bankers were instrumental in setting up international financial frameworks. This included the groundwork for what would later become the International Monetary Fund (IMF) and the World Bank. Both of which were formally established after World War II but were conceptually influenced by the financial arrangements of the 1920s and 1930s.
These institutions were designed to stabilize the global economy and prevent the kind of economic chaos that had followed World War I, but they also ensured that American financial interests would dominate the global economic order. Through these mechanisms, American bankers maintained significant control over international finance, influencing global economic policies for decades to come.
Money means foreign policy
Both Prins and Lundberg emphasize that the influence of American bankers extended beyond economics into foreign policy. The financial dependence of European nations on American loans meant that U.S. bankers had a say in diplomatic matters as well. This period saw a blurring of lines between financial power and political authority. The bankers were often acting as informal advisors to the U.S. government on foreign policy matters.
In summary, the post-World War I order was significantly shaped by American bankers, whose influence extended across the Atlantic. It was affecting both the economic recovery of Europe and the structure of the global financial system. Their actions during this period laid the groundwork for the economic policies and international relations that would eventually contribute to the outbreak of World War II. Both Prins and Lundberg provide detailed accounts of how these banking elites leveraged their financial power to shape the post-war world. This was often accompanied by profound and far-reaching consequences.
World War 2 and its economic background
In All the Presidents’ Bankers, Nomi Prins delves into the significant influence that American bankers had on the events leading up to and during World War II. This influence was not only a continuation of the power dynamics established during World War I but also a reflection of the evolving relationship between Wall Street (the USA’s super-rich families) and Washington in the face of global conflict and economic instability.
The big Wall Street gamble
In Nomi Prins’ All the Presidents’ Bankers, she delves into how the speculative activities of the super-rich, particularly bankers, during the 1920s set the stage for the financial collapse that led to the Great Depression, which in turn laid the groundwork for World War II. During this decade, key figures in the banking world, including the likes of J.P. Morgan and Charles Mitchell, heavily promoted and engaged in speculative investments in the stock market. They facilitated easy credit, encouraging both wealthy and average investors to buy stocks on margin, which means they borrowed money to invest, betting that stock prices would keep rising.
This period of rampant speculation, fueled by the belief in endless economic growth, created an unsustainable bubble. When the market crashed in 1929, the losses were catastrophic. The crash triggered a chain reaction of bank failures and mass unemployment, plunging the U.S. and much of the world into the Great Depression.
Prins explains that the economic turmoil caused by the Depression was a key factor in the political instability that followed. This was mainly the case of Germany, where the Nazi Party exploited the economic despair to gain power. The destabilization of economies worldwide, driven by the speculative excesses of the 1920s, directly contributed to the conditions that made World War II possible.
Prins’ analysis highlights how the unchecked greed and speculative behavior of the banking elite in the 1920s had far-reaching consequences, demonstrating the dangers of a financial system that prioritizes short-term gains over long-term stability. This period serves as a critical lesson in how economic policies and the actions of financial elites can have profound and sometimes devastating effects on global history.
USA’s super-rich and big banks over and over again
As World War II loomed, key American bankers, particularly those from institutions like J.P. Morgan & Co. and the Rockefeller-controlled Chase Bank, played critical roles in shaping U.S. foreign policy and economic strategies. These bankers were deeply embedded in both the U.S. and global economies. And their financial networks extended into both Allied and Axis countries, creating complex ties that influenced American policy decisions.
Before the U.S. officially entered the war, American bankers maintained financial relationships with Germany, Italy, and Japan. Some of the most prominent banks, including Chase Bank, continued to do business with Nazi Germany well into the late 1930s. No morals, just driven by profit motives and existing financial ties. For example, Chase Bank was involved in maintaining the accounts of Nazi officials and even facilitated the exchange of Nazi funds, a practice that was later scrutinized when the U.S. joined the war against Germany.
Prins details how these financial connections influenced the broader U.S. stance on the war. Many of the bankers were initially reluctant to support direct U.S. involvement in the conflict, fearing the disruption of their global financial networks. However, as the war progressed and the threat to global stability – and by extension, their financial interests – became more apparent, these same bankers shifted their support toward the Allied cause. Their influence was particularly evident in the support for the Lend-Lease Act. This which allowed the U.S. to provide crucial military aid to Britain and other Allied nations. The act not only bolstered the Allied war effort. But also ensured that American banks and businesses could continue to profit from the conflict, further entwining their interests with those of the U.S. government.
New institutions
Beyond direct financial involvement, American bankers also played a key role in shaping the post-war order. They were instrumental in the creation of the Bretton Woods system, which established the International Monetary Fund (IMF) and the World Bank. These institutions were designed to stabilize the global economy and promote economic recovery after the war. But they also ensured that American financial interests would dominate the global economic landscape in the post-war era. This influence extended into the negotiations and agreements that shaped the Marshall Plan, which provided extensive economic aid to rebuild Europe, again securing American economic dominance.
America’s 60 Families by Ferdinand Lundberg further corroborates and expands on these themes, detailing how a small group of wealthy families and their associated banking institutions wielded disproportionate influence over both U.S. and global affairs (despite his book being released before, his analysis provides insight into how these families and financial elites could have set the stage for U.S. involvement in World War II by consolidating power and shaping economic policies that later influenced wartime strategies). According to Lundberg, these families were deeply involved in the decision-making processes that led to the U.S. entering World War II and were key players in the economic strategies that shaped the war’s outcome and aftermath. Their control over major industries and financial institutions meant that they stood to gain significantly from the war, both in terms of profits and in the consolidation of their power within the U.S. economy.
Total overlap. What is business and what is government?
The narrative laid out by both Prins and Lundberg paints a picture of a financial elite that was not only deeply intertwined with the U.S. government but also instrumental in shaping the global order during one of the most turbulent periods of the 20th century. The bankers’ influence during World War II highlights the complex and often controversial relationship between economic power and political decision-making, a relationship that has had lasting impacts on global politics and economics.
This period in history serves as a stark reminder of how financial interests can drive policy decisions, sometimes at the expense of broader ethical considerations, and how the legacy of these decisions continues to shape the world today. The intricate ties between Wall Street and Washington during World War II illustrate the enduring power of the financial elite in shaping not just the American economy, but the global order as a whole.
Sources: The Economics of World War II (Cambridge University Press), Sovereign Debt and Financial Crises (IMF)
Free Trade Revolution: The Economic Effects of World War II (The Collector), Council on Foreign Relations
The post-WW2 order
The influence of American banks and the super-rich on the post-World War II global order is deeply rooted in their actions during and after the war, particularly through the establishment of the Bretton Woods system and the implementation of the Marshall Plan. These efforts not only stabilized the global economy but also entrenched the power of U.S. financial institutions and the wealthy families that controlled them.
The role of banks and the super-rich in Bretton Woods
At the Bretton Woods Conference in 1944, American bankers and financial elites were instrumental in designing a global financial system that would secure U.S. economic dominance. Key figures from institutions like J.P. Morgan & Co. and Chase National Bank played crucial roles behind the scenes. Their involvement was not just technical but strategic. They ensured that the new system would place the U.S. dollar at the center of global finance. Thus tied to gold, therefore cementing the U.S. as the world’s financial leader.
These bankers, representing the interests of the super-rich families who controlled them, understood that by making the U.S. dollar the primary reserve currency, they could exert immense influence over international trade and finance. This was a deliberate move to create a system where American financial institutions could thrive and expand their influence globally. The Bretton Woods institutions – namely, the International Monetary Fund (IMF) and the World Bank – were established with strong input from these banking elites, ensuring that they would operate in ways that aligned with U.S. interests.
The Marshall Plan and expansion of influence
Following the war, the Marshall Plan introduced a massive aid package to help rebuild Europe. While they framed it as a humanitarian effort, it was also a strategic tool for expanding American influence. Banks like J.P. Morgan and the Rockefeller-controlled Chase National Bank were deeply involved in the administration and distribution of Marshall Plan funds. These banks provided the necessary capital for European reconstruction. But they also embedded American economic policies into the recovery process. This was ensuring that Europe would remain dependent on U.S. financial support and aligned with American geopolitical interests.
The Marshall Plan also facilitated the expansion of American businesses into European markets, creating new opportunities for profit. This economic expansion was supported by the General Agreement on Tariffs and Trade (GATT), which promoted free trade and reduced barriers, benefiting U.S. exporters and financial institutions. The U.S. banks not only provided capital but also played a key role in shaping the economic policies of European countries, further entrenching their influence.
Continued influence and the rise of multinational corporations
As the post-war order solidified, American bankers and the super-rich families behind them continued to leverage their power to shape global finance. The Bretton Woods institutions, along with the IMF and the World Bank, became tools for dictating economic policies in developing nations. These institutions often required countries receiving financial assistance to adopt neoliberal economic policies – such as fiscal austerity, deregulation, and trade liberalization – that favored U.S. interests and the growth of multinational corporations.
These multinational corporations, many of which had close ties to American banks, became the new vanguard of U.S. economic power. They extended the reach of American influence across the globe, often working hand-in-hand with financial institutions to secure favorable terms for investments and trade. The concentration of wealth and power among a small group of elite families and their banks ensured that the U.S. would remain the dominant global superpower for decades to come.
Influence on global finance and policy
This post-war order, dominated by American financial institutions and the super-rich families that controlled them, was not just about economic dominance. It was also about shaping the political landscape. The ability to dictate terms to other nations through institutions like the IMF and World Bank allowed the U.S. to influence the political and economic policies of countries around the world. This influence ensured that the global economy would operate in ways that benefitted U.S. interests, often at the expense of national sovereignty in recipient countries.
Ferdinand Lundberg’s America’s 60 Families complements this understanding by highlighting how these wealthy families used their financial empires to maintain and expand their influence over U.S. foreign and domestic policy. Their continued dominance was ensured through the policies and institutions that emerged from the Bretton Woods Conference and the Marshall Plan, securing the U.S.’s position as the leading global superpower and protecting the wealth and influence of the American elite.
Conclusion
In conclusion, the post-World War II global financial order was heavily shaped by American banks and the super-rich families who controlled them. Through strategic involvement in the Bretton Woods Conference, the implementation of the Marshall Plan, and the rise of multinational corporations, these financial elites were able to exert significant influence over global finance and international policies, securing American economic dominance for the foreseeable future.
I wouldn’t say the USA’s super-rich or other countries’ super-rich are the sole reason for world wars. Nationalism, militarism, harsh reparations, and territorial losses are also the causes.
However, without the super-rich, the world would be a safer place.
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