Lecture Notes: The Creature from Jekyll Island - Chapter 12: Sinking the Lusitania
Introduction
Focus on Chapter 12 from G. Edward Griffin's book, discussing the sinking of the Lusitania.
Prior chapters discussed the Rothschild Formula and its impact on Europe.
Chapter 12: Sinking the Lusitania
Key Players
JP Morgan: Provided loans to England and France during WWI.
Woodrow Wilson: U.S. President driven by internationalist ideals.
Colonel Edward Mandell House: Influential advisor to Wilson, involved in secret agreements.
Winston Churchill: First Lord of the Admiralty, played a role in naval strategies.
Background
WWI's origin often linked to the assassination of Archduke Ferdinand, but deeper financial motives are explored.
America entered WWI under the guise of defending democracy, but financial interests were significant.
Financial Context
Rothschild Formula: Controlled European political climate through financial means.
Morgan's Role: Acted as sales agent and purchasing agent for Allied war bonds, benefiting financially at both ends.
War Profiteering: Morgan’s profits were substantial from the sale of bonds and war materials.
The Lusitania Incident
The Lusitania: British passenger liner with military undertones used to transport munitions.
German Embassy Warning: Attempted to warn American passengers through newspaper ads, largely suppressed.
Sinking: Torpedoed by a German U-boat, leading to loss of 195 American lives.
Political Maneuvering
Wilson’s Dilemma: Pacifist at heart, yet maneuvered to involve the U.S. in the war for broader goals, like world governance.
Colonel House’s Secret Agreement: Pledged U.S. intervention in the war under specific conditions.
Media Influence: Controlled by financial interests to sway public opinion towards war.
Consequences
Immediate Aftermath: Sinking catalyzed U.S. declaration of war.
Financial Impact: Loans and wartime expenditure underpinned by Federal Reserve’s creation of money.
Long-Term Effects: Inflated money supply led to decreased purchasing power and hidden taxation via inflation.
Summary
The sinking of the Lusitania was pivotal in swaying American opinion and government policy towards entering WWI.
Financial interests, particularly those of JP Morgan and other bankers, played a significant role in pushing the U.S. into the war.
The events were marked by strategic manipulations, media control, and high-stakes international politics.
Conclusion
The chapter illustrates the complex interplay between finance and politics during WWI, highlighting the influence of powerful financial entities in global conflicts.