Map of Canaan from around 750 BC

A painful history

The Jewish Question

For centuries, the Jewish people have lived as a minority in the lands of others. Their relationship with the others has often been problematic. The Jews lived separately in dedicated quarters and were second-rate citizens. And from time to time, they had to flee from murderous mobs. What to do with the Jews? It was a question asked by thinkers and leaders alike. Martin Luther and Karl Marx expressed their views on this matter, called The Jewish Question. Adolf Hitler sought a definitive solution by trying to exterminate the Jews.

As the founder of Zionism, Theodor Herzl, wrote, ‘The Jewish question persists wherever Jews live in appreciable numbers. Wherever it does not exist, it is brought in together with Jewish immigrants. We are naturally drawn into those places where we are not persecuted, and our appearance there gives rise to persecution.’ In folklore, conspiracy theories blamed the Jews for all kinds of things, ranging from spreading diseases, sacrificing children, and conspiring to dominate the world, and this tradition continues into the present. A few examples:

  • People who oppose interest and usury often blame the Jews as they have been money lenders for centuries, and many are still working in finance.
  • Jews have taken a piece of Arab land that is now called Israel. They expelled many Arab inhabitants. That is why a lot of Arabs hate Jews.
  • You sometimes hear that the Jews determine what you hear on the radio and see on television because they control the media.
  • Perhaps you have read that Jews cause wars and revolutions, often with the help of the secretive Freemasons and the elusive Illuminati.
  • There is a worldwide trade in illegally harvested organs, and Jews are also involved. But it is not only Jews doing this.
  • Perhaps you cannot trust Jews because they are more loyal to Israel than the country they live in. And what about people from other nationalities?
  • The United States has a corrupt and dysfunctional political system. The Jews use it to their advantage. So, follow the money.
  • The same goes for poor-quality Hollywood movies. The Jews did it.
  • And Jews can be blamed for other things too, of course not the ‘good Jews’, only the ‘evil Jews’, but it is hard to tell the difference, so do not trust them.

It is a painful history. The truth can only set us free if we let go of hatred. There is a relationship between ethnicity and conduct that goes through culture. Cultures emerge out of history and circumstances. You can’t blame someone for being raised in a particular tradition, but these traditions can harm society. And that isn’t only Jews. Just think of the damage white Europeans have caused all over the globe. Other particular traditions can also be harmful, for instance, ethnicity-related organised crime like the Italian mafia.

Closer inspection reveals that things are not always what they seem. If antisemites allege Jews do this or that, look at the facts and don’t get carried away. If a US politician doesn’t unconditionally support Israel, you know what happens. Money rules our world. But hatred doesn’t solve the issue. Karl Marx wrote:

What is the secular basis of Judaism? Practical need, self-interest. What is the worldly religion of the Jew? Huckstering. What is his worldly god? Money[…] The Jew has emancipated himself in a Jewish manner, not only because he has acquired financial power but also because, through him and also apart from him, money has become a world power, and the practical Jewish spirit has become the practical spirit of the Christian nations. The Jews have emancipated themselves insofar as the Christians have become Jews[…] Money is the jealous god of Israel, in the face of which no other god may exist. Money degrades all the gods of man – and turns them into commodities[…] The bill of exchange is the real god of the Jew. His god is only an illusory bill of exchange[…] The chimerical nationality of the Jew is the nationality of the merchant, of the man of money in general.1

Marx had Jewish roots, so he knew what he was talking about. He equated practical Judaism to huckstering and money and claimed that Christians have become Jews and that humankind, both Christians and Jews, needs to emancipate itself from this practical Judaism. Money rules our world. Money is our God. And that is the core problem we face today. How this situation came to be is a long history.

There has been a long Christian tradition of intolerance towards Jewish people. Only Christians were even more intolerant towards all other religions, including diverging versions of Christianity. Christians only tolerated Jews, first because the Pope said so and later because they proved helpful for trade, tax collecting and moneylending, which were activities Christians found morally reprehensible and didn’t like to do themselves.

Muslims were even more tolerant. Apart from Jews, they also tolerated Christians. And they did not persecute Jews as much as Christians until the Jews founded the state of Israel and expelled the Muslims. That infuriated many Muslims, so they often returned the favour by expelling the Jews. Despite all this tolerance, Christianity and Islam were among the most intolerant religions ever. That proved to be crucial for their success. The owner of this universe, commonly known as God, did not provide sufficient proof of Her existence, so convincing people with reason was not always possible. The Jews did not get that. They preferred to hold on to their exclusive relationship with the all-powerful Creator of this universe. And so, they were not so kind to try to save others from eternal damnation by forcefully converting them.

The plight of Jewish people was not much unlike that of other minorities that did not adapt and integrate into society. The Jews had their religion, and the claims of Christians about Jesus did not make sense to them. Being beaten up regularly is the least you can expect from peasants if you differ from them. And it was often worse than that.

Map of Canaan from around 750 BC
Map of Canaan from around 750 BC

A short primer on Jewish history

Between 1200 BC and 900 BC, a few small nation-states emerged in an area now covered by Israel, Palestine, Jordan, Syria and Lebanon. Among them were Israel and Judah. These small states appeared because Egyptian power in the area was waning. It took a few centuries before new strong powers emerged and overran these small states. Israel fell into the hands of the Assyrians in 720 BC. Judah was destroyed in 587 BC by the Babylonians, who had taken over the Assyrian Empire.

These small kingdoms had a national deity for fortune and protection. Their kings may have adopted this deity to promote a sense of a nation to assert their authority. Yahweh was the national deity of Judah and probably also of Israel. At first, Yahweh’s worship may not have differed much from the worship of other national deities, such as Chemosh, the god of Moab.

After Israel and Judah had ceased to exist, their inhabitants faced an identity crisis. The new powers defeated their uprisings, and the Babylonians took many Jews into exile in Babylonia. Jewish priests then began to write down the Torah (Old Testament) to define a sense of nation around their national deity, Yahweh, without a king or a territory.2 In this way, the Jews became a people without a land. Their promised land, Israel or Zion, remained central to their religion.

Around 450 BC, many exiled Jews were allowed to return. From 164 BC, there was an independent Jewish state for 100 years until the Romans conquered it. At the time of Jesus, tensions were growing between the Jews and their Roman overlords. It led to several uprisings between 66 AD and 136 AD. During these revolts, the Romans destroyed the Jewish temple. Over time, the majority of the inhabitants of the area became Christians and later Muslims. Jews remained in scattered communities around the Mediterranean.

In ancient societies, only the elite received education. The Jews introduced mass education for their people. The Torah became the pillar of their national education system. Divine knowledge, rules, and regulations became open to the public.2 The value of education thus became embedded in Jewish culture.

Nations came and went, but the Jews remained, so becoming people without a land was a successful long-term survival strategy. The Jewish people have been around for more than 2,500 years while not having a homeland for nearly 2,000 years. That was why not all Jews supported the Zionist project of creating the state of Israel. A Jewish state might endanger the Jewish people if they cannot defend their land.

The Jewish religion became the basis for Christianity and Islam. Christianity and Islam both tend to see Judaism as a legitimate religion. Christians and Muslims allowed Jews to live in their lands, albeit as secondary citizens. Living together was not easy. For instance, Christians sometimes blamed the Jews for killing Jesus.3 The Jewish high priests had accused Jesus of blasphemy as he claimed to be the Son of God. According to the Gospel, the Jewish high priests and a Jewish mob demanded the crucifixion of Jesus. And the Gospel, which means good news, by the way, says:

When Pilate saw that he was getting nowhere, but that instead an uproar was starting, he took water and washed his hands in front of the crowd. ‘I am innocent of this man’s blood,’ he said. ‘It is your responsibility!’ All the people answered, ‘His blood is on us and on our children!’

Matthew 27:24-25

The Jews are forever responsible for the death of Jesus, the wording implies, and it became a justification for Christian anti-Semitism.

German picture of 1493 depicting human sacrifice by Jews
German picture of 1493 depicting human sacrifice by Jews

In the Middle Ages, rumours spread from time to time that Jews abducted Christian boys for their secret rituals. It is known as the blood libel. So when a boy disappeared, it was time to kill some Jews. There was no basis for these beliefs, but little did people know about the Jewish religion and its practices.2 And because of their ritual hygiene, the Black Death did not hit Jews as much as Christians. Rumours spread the Jews were behind the disease. Medieval peasants often freaked out because they were superstitious and lacked education. And so they burnt witches at the stake when the harvest failed.

In popular culture, Jewish people had a low standing. They worked in trade and finance. These activities were often seen as reprehensible as trade and finance often coincide with questionable ethics. Some languages still reflect this. The English language has the term Jewish stock take, referring to a shopkeeper destroying his shop in a self-lit fire to claim insurance. The Dutch language has the word ‘jodenbod’, which means Jew’s bid, to indicate bids below a reasonable price which people in a desperate position have to accept. Jews living from trade and finance and little love existing between Christians and Jews might lead to that kind of situation.

After the French Revolution of 1789, Jews in Western Europe received citizenship. In Eastern Europe, and most notably in Russia, they faced pogroms or riots that included robbery, destruction of property and sometimes killings. Around 1870, the first Jewish settlers entered Palestine. In 1896, Theodor Herzl published The Jewish State. He claimed that the solution to The Jewish Question was a Jewish state. It marked the beginning of modern Zionism.

In 1873, the Vienna stock market crashed. A lingering recession followed that lasted until 1896. It was the first global economic crisis. Economic growth was lower than previously. Anti-Semitism rose in German-speaking areas and France as people blamed Jewish bankers and industrialists for the situation. It was the time when Silvio Gesell was a businessman. He experienced the poor economic conditions first-hand. It made him investigate the underlying causes and later write the Natural Economic Order.

In 1894, Captain Alfred Dreyfus, the only Jewish member of the French general staff, was convicted of spying for Germany. He was innocent and rehabilitated a decade later after vigorous protests. During World War I, many Jews fought for their nation-states. After the war, a myth emerged in Germany, suggesting Germany lost because of leftists, republicans and a Jewish conspiracy.

A Jewish state

In 1917, the British offered Palestine to the Jews to establish a national home for the Jewish people. The declaration was part of a letter from the United Kingdom’s Foreign Secretary Arthur Balfour to Lord Rothschild, a leader of the British Jewish community. Shortly after the start of World War I, a Zionist Cabinet member, Herbert Samuel, wrote a memorandum proposing to back the Zionist cause to enlist the support of Jews in the war. The Arabs living in Palestine had no say in this, which soon led to tensions and Arab resistance, which the British repressed. Between 1920 and 1940, 300,000 Jews migrated to Palestine, often to escape persecution. The Arabs revolted between 1936 and 1939. The British subsequently restricted Jewish immigration.

After World War II, large numbers of Jews entered Palestine, many of them Holocaust survivors. The Holocaust became a trauma in the collective memory of the Jewish people. Nearly six million of them died in concentration camps and mass executions. It gave credibility to the case of the Zionists, who believed that the Jewish people could only be safe once they had a country of their own. The atrocities the Jews had suffered from raised support for the Zionist cause in the West, most notably in the United States. The Zionists started a guerrilla war against the British. It included 70 terrorist attacks between 1937 and 1948, including the King David Hotel bombing that killed 91 people and the devastating bomb attack on the British police headquarters in Haifa.

In 1947, the United Nations planned to divide Palestine between the Jews and the Arabs. The plan allotted 62% of the land to the Jewish state despite the Palestinian Arab population numbering twice the Jewish population. The Zionist Jews accepted it as it was a favourable deal for them. The Arabs rejected it because, in addition to the Arabs forming a two-thirds majority, they owned a majority of the lands. The Arabs were also unwilling to accept a division and aimed for Arab rule of Palestine.

When Israel declared independence in 1948, a civil war broke out. The neighbouring Arab countries attacked Israel, but the Zionists were prepared and well-trained, and the Arabs lost. Around 700,000 Arab Palestinians, or 80% of the population, fled or were expelled from their homes. The Palestinians call it ‘The Catastrophe’. The Catastrophe greatly influenced Palestinian culture and helped to create a separate Palestinian identity. The Catastrophe means displacement, dispossession, statelessness and fracturing of Palestinian society. It is much like the Jewish diaspora.

During the Six-Day War of 1967, Israel conquered the remaining Palestinian territories. Israel started this war after Egypt blocked Israeli shipping through the Egyptian-controlled Strait of Tiran and brought military forces close to the Israeli border. An Israeli surprise attack caught the Egyptian forces off-guard, causing Egypt to lose nearly all its military aeroplanes. Jordan and Syria came to Egypt’s aid but were also defeated. Whether this pre-emptive war prevented an Egyptian attack on Israel remains a matter of debate. Israel captured and occupied the Golan Heights from Syria, the West Bank from Jordan, the Gaza Strip and the Sinai Peninsula from Egypt.

Around 300,000 Palestinians and 100,000 Syrians fled or became expelled from the West Bank and the Golan Heights. Many others came to live under Israeli occupation. At the same time, Zionist settlers began colonising the remaining parts of Palestine, most notably the West Bank. In 1973, Egypt and Syria launched a surprise attack against Israel with the support of other Arab nations in the Yom Kippur War. After initial Arab successes, Israel repelled the attack. Syrian and Egyptian forces killed and tortured captured Israeli soldiers. Over time, Israel achieved peace with several Arab countries, but the Israeli-Palestinian conflict remains unresolved. Palestinian resistance often comes in the form of terrorist attacks while Jewish settlers keep on colonising Palestinian land.

Conspiracy theories

The anti-Semitic conspiracy theories range from crazy allegations to well-documented research like the investigation into the Israel lobby by John Mearsheimer and Stephen Walt. There is a large grey area in between. And it is a minefield because of the Holocaust. No sensible person would like to see pogroms or worse. The Jewish people are a small nation with an enormous impact on world history. That fuels speculation. Before going into the conspiracy theories, it might be good to come up with a few general explanations for the remarkable successes of the Jewish people. These are:

  • The Jews invented mass education twenty-five centuries ago (it took twenty-four centuries before Western Europe followed suit) because they felt they all had to understand their scriptures to discuss them intelligently.
  • Due to restrictions imposed on them in the past, Jewish people often went into occupations like trade and finance, which are activities that can make you rich without a lot of toils.
  • For centuries, the Jewish people lived under marginal and uncertain conditions which required resourcefulness that may have become part of Jewish culture.
  • There might be a script running all that happens in this universe, and the Jews may be God’s chosen people, even though that was not always a blessing for the Jews themselves. The parallel with the sacrificial lamb Jesus is eye-catching.

Anti-Semitic conspiracy theories have done tremendous harm and helped to make the Holocaust possible. It may nevertheless be better to view them more objectively as theories for which there might be evidence and the understanding that cultural differences are a source of trouble because the behaviour of one group can harm others. That may require emotional distance as the truth is not always politically correct.

There is a joke that goes like this, ‘Why does Israel not become a state of the United States? Well, if Israel does, it will have only two Senators.’ Israel has the unconditional support of the United States. Senators and members of Congress who hold different views face the powerful Israel Lobby. The lobby will fund the campaign of their opponents, which likely means losing the election. Jewish interest groups have a lot of power, and a book claims there is a secret Jewish plot to gain world domination.

The Protocols of the Elders of Zion is a fiction made up by the Russian secret service around 1900. The Russian tsarist regime was hostile towards Jews. Some people took the protocols seriously, and it subsequently became a guidebook for blaming Jews for everything. The Protocols claim the Jews form a secret cult conspiring to gain world dominance via plots and schemes hidden from the public eye. Adolf Hitler and the automaker Henry Ford believed it, as did many others. And somehow, the work became a bit prophetic. That might be called the irony of history or perhaps the plan of God.

The main themes of the Protocols and related conspiracy theories are Jewish control of world finance, Jewish organisation of radical movements and Jewish manipulations of diplomacy to cause wars that kill white Christians. There are racist, political and religious aspects to these claims. You can definitely read ‘evil Jews’ between the lines. Anti-Semites use so-called whistle words, which means that they mean ‘evil Jews’ even when they do not say so. But using that as an argument can become a way to dismiss legitimate concerns.

Mearsheimer and Walt investigated the power of the Israel Lobby. They claimed that if you criticise Israel in the United States, you will be branded an anti-Semite. It means that you are a racist Jew-hater. Major newspapers subsequently published editorials calling their research anti-Semitic. AIPAC is the most prominent organisation in the Israel Lobby. Mearsheimer and Walt concluded:

AIPAC’s success is due to its ability to reward legislators and congressional candidates who support its agenda, and to punish those who challenge it. AIPAC makes sure that its friends get strong financial support from the myriad pro-Israel PACs. Those seen as hostile to Israel, on the other hand, can be sure that AIPAC will direct campaign contributions to their political opponents. The bottom line is that AIPAC, which is a de facto agent for a foreign government, has a stranglehold on the U.S. Congress. Open debate about U.S. policy towards Israel does not occur there.4

Stranglehold is a whistle word as it might imply that ‘evil Jews’ control US politics, but if you leave out the word ‘evil’, you arrive at a well-documented conclusion. And so, the anti-Semitism argument increasingly fails to convince people. It is apparently forbidden to say the truth in US politics. If you think of the consequences of anti-Semitism in the past or that millions of Jews face displacement or worse if Israel collapses, you might understand why Jewish interest groups go to such great lengths to keep American support.

Suppressing the truth is a self-defeating strategy in the long run while dealing with it is like opening a can of worms. Several powerful lobbies operate in the United States, some representing foreign national interests, but few attract as much attention as the Israel Lobby. So why is the Israel Lobby so powerful, visible and aggressive? There are some possible answers:

  • Unlike other foreign interests, the Israel Lobby long had broad popular support. Anti-Semitism led to the Holocaust, so the Israel Lobby could more easily claim the moral high ground.
  • Jews in Israel do not feel secure because of the Holocaust and because Israel is on land taken from the Arabs. Criticism of Israel provokes the fear that the legitimacy of the Jewish state is at stake.
  • Israel ignores international law by colonising Palestinian land. The unconditional support of the United States helps Israel to do that.

The Israel Lobby is the most visible in the United States but has significant influence in some other countries as well. When a public figure demonstrates a one-sided sympathy for the Palestinian cause, like the former Dutch Prime Minister Dries Van Agt, the lobby brings in anti-Semitism allegations. Former labour leader Jeremy Corbyn faced a similar fate in the United Kingdom. He associated himself with anti-Jewish figures, including Holocaust deniers. His personal views on the matter became of secondary importance. Pro-Israel figures do not face the same kind of scrutiny.

Powerful lobbies undermine democracies, most notably when they suppress dissent, which most interest groups did not do as much as the Israel Lobby. The Woke copied these tactics inspired by the Frankfurt School. In his book Critique of Pure Tolerance, Herbert Marcuse claimed that freedom of speech limits freedom. He proposed a liberating tolerance, which is intolerance to right-wing movements and toleration of left-wing movements. That thought emerged within a context. The Frankfurt School is from Germany and was preoccupied with preventing the reappearance of Nazism.

Usury

The Jew as usurer is a well-known theme in anti-Semitic folklore. The Roman Catholic Church forbade Christians to charge interest to fellow Christians. During the Middle Ages, Jews were excluded from several professions and pushed into activities that Christians deemed reprehensible. One of them was money lending. The Torah allowed Jews to charge interest to Christians. Their principle was, thou shall not lend at interest to your brothers. Christians believed in that same principle. But Christians and Jews did not see each other as brothers. The long-term consequences of interest are not well-understood in modern times as economic growth and price inflation mask them. Interest charges can destroy people, businesses, nations and even entire civilisations.

The financialisation and indebtedness of Western societies, most notably that of the US and the UK, can be traced back to interest charges. The mere pursuit of profit, or making money with money, undermines the moral fabric of society. That may not be obvious as people have different views about right and wrong. There are supposedly nihilist philosophies that are either the outcome of despair or the acknowledgement that we are animals and that our moral values are not absolute but relate to our human nature. But apart from that, the love of money is the root of many kinds of evil.

In the Middle Ages, interest rates were high, sometimes as much as 20% to 30% annually. And so, the misery caused by interest charges was more visible. And Jews often received the blame because they were moneylenders. The official lending by Jewish money lenders mandated by the Church allowed for interest rates below 10%. Persecuting Jews was also profitable for their debtors. For instance, in 1290, King Edward I expelled the Jews from England, confiscated their assets, and defaulted on the loans he had received from them.

In the 16th century, short-term interest rates dropped to around 10% annually because financial markets became more developed and efficient. As interest rates went down, and because of the Protestant Reformation, religious objections against charging interest waned. Once Christians could charge interest on fellow Christians, the Jewish role in money lending was reduced, but it remained significant. Interest became an essential part of the capitalist economy, and Western culture became ignorant about the problematic nature of interest charges. Usury is an insidious process leading to a possible endgame of financial collapse or hyperinflation once economic growth falters.

Jews play a prominent role in the financial sector in the United States. They have served as chairmen of the Fed, including Alan Greenspan, Ben Bernanke and Janet Yellen. The exploitative nature of finance and the bailouts feed the conspiracy theory of Jewish usury. Real wages in the United States have hardly risen for decades, but the US financial sector comprised only 10% of total non-farm business profits in 1947 but grew to 50% by 2010. Finance does not produce food or widgets but merely extracts its profits from those who make real things. At the top of the financial and economic food chain are relatively many Jews. While many ordinary people in the United States struggle to make ends meet, the top 1% is doing well.

Influence on the media and opinion

In 2012, six corporations owned 90% of the mainstream media in the United States. Most of these corporations have Jewish CEOs and owners. Journalists are also often Jewish. How much that affects the reporting remains to be seen. In 2008, Philip Weiss remarked that in a few months, several serious people suggested that Jews predominate in the American media. For instance, at a forum at the Nixon Center, the former high-ranking government official Dov Zackheim said, ‘Jews don’t dominate the policy-making process, but the media is a different story.’ From his personal experience, Weiss claimed most editors were Jewish.6

The real issue is, does it matter? Weiss thinks so when it concerns the Israeli-Palestinian conflict. He cites a few Jewish journalists who admitted to having a bias.5 J.J. Goldberg wrote in The Forward that, although Jews hold many prominent positions in the US media, they do not prioritise Jewish concerns and that Jewish Americans generally perceive the media as anti-Israel.6 And what about the Jews dominating Hollywood? That is such a Jewish stereotype. Joel Stein of the Los Angeles Times mocked the efforts of the Anti-Defamation League (ADL), which is another part of the Israel Lobby, to educate the American public:

I have never been so upset by a poll in my life. Only 22% of Americans now believe “the movie and television industries are pretty much run by Jews,” down from nearly 50% in 1965. The Anti-Defamation League, which released the poll results last month, sees in these numbers a victory against stereotyping. Actually, it just shows how dumb America has gotten. Jews totally run Hollywood.7

The Internet is more difficult to manage. Anti-Semitic and anti-Zionist messages can be found on many message boards. Israel has tried to counter that by paying students to post pro-Israel messages on social media.8 It was part of a public relations effort named ‘hasbara’ that some call propaganda.

In October 2007, about 300 academics issued a statement calling for academic freedom from political pressure, most notably from groups portraying themselves as defenders of Israel. In 2009, sociology professor William Robinson sent an email to students in which he compared the Israeli occupation of Gaza with the Nazi-controlled Warsaw Ghetto during World War II. The ADL started a campaign to discipline him for violating the faculty code of conduct.

Linguistics professor Noam Chomsky, a left-wing political activist, claimed the ADL had compiled a 150-page dossier on him. He is highly critical of US and Israeli policies. Chomsky also defended the right to deny the Holocaust as freedom of speech. The ADL called him a Holocaust denier, describing him as a dupe of overweening intellectual pride who is incapable of distinguishing between totalitarian and democratic societies and between oppressors and victims. Apparently, the ADL collected information to use against him. Chomsky said that an ADL insider sent him the file. It included conversations, correspondence and other materials. Chomsky added that it read like an FBI file. He further noted:

It’s hard to nail this down in a court of law, but it’s clear they essentially have spies in classrooms who take notes and send them to the ADL and other organisations. The groups then compile dossiers they can use to condemn, attack or remove faculty members. They’re like J. Edgar Hoover’s files. It’s kind of gutter stuff.9

In January 1993, the city’s police department raided the San Francisco ADL’s Northern California office. It kept files on more than 600, predominantly leftist, civic organisations and over 10,000 individuals. The police estimated that the ADL had illegally obtained 75% of that information. By November, District Attorney Arlo Smith appeared close to indicting the ADL. Fearing to lose the support of the influential Jewish community for his election, he dropped the case. The police investigation uncovered information about the ADL’s spying operations.10

In recent years, the influence of the Jewish lobby on public opinion in the United States waned because of the simultaneous rise of the woke left and the white supremacist right. The Woke favour the marginalised and oppressed and support the Palestinian cause, while white supremacists are open to anti-Jewish conspiracy theories. The woke people use the tactics that the Jewish lobbies have used previously, for instance, cancelling those with different views. The 2023 Gaza War eroded Israel’s standing further. For Hamas, the coverage of the Israeli brutality in Gaza was a gift that kept on giving. The terrorist attacks were over after a few days, but the misery in Gaza dominated the news for months.

Causing wars and revolutions

The French revolutionaries decided that Catholics, Protestants and Jews became full members of society. In 1797 and 1798, a French Jesuit and a Scottish physicist published two remarkably similar books claiming secret societies were undermining the social order and had started the French Revolution. Both named the Freemasons and the Illuminati as the main culprits. And Jews were also seen as conspirators. They benefited from Napoleon giving them equal rights, so they must have organised it. Much of contemporary conspiracy thinking still centres around these secretive groups and Jews.

And Jews supposedly started the Russian Communist Revolution of 1917. Anti-communists brought up the idea during the ensuing civil war to use existing anti-Semitic sentiments for their political aim. There was a high number of Jewish Communist Party leaders during the revolution. The anti-Semitism in the Russian Empire may have induced them to join radical political movements.

That does not explain why many Jews joined radical movements in other countries. Milton Friedman tried to shed some light on this issue. He found that Jewish people wrote a significant part of the revolutionary anti-capitalist literature and ran and disproportionally filled the ranks of Communist parties in many countries.11 A conspiracy theorist would like you to believe that the Jews seek to control both sides.

Friedman did not think Jews were seeking world domination. He gave two reasons why they joined radical movements. First, the left provided the Jews with equal citizenship, while the Christian right did not. Second, the stereotype that Jews are profiteers and usurers may have persuaded them to show themselves and the anti-Semites that they are not selfish and heartless but public-spirited and idealistic.11 A third reason, which Friedman did not mention, was that many intellectuals were Jewish causing them to have a significant influence on both socialist and capitalist thinking.

Anti-Semitism did not disappear in the Soviet Union. In 1948, Stalin started a campaign against the so-called rootless cosmopolitans, a euphemism for Jewish intellectuals. During that campaign, the Soviets killed leading Jewish writers and artists and removed Jewish scholars from the sciences.

After 1968, the left gradually alienated from its traditional base of workers in favour of disadvantaged groups like ethnic minorities, women, and LGBT people. The Marxist Frankfurt School played a significant role in this development. The Cultural Marxism conspiracy theory claims Marxists of the Frankfurt School undermine Western civilisation with civil rights movements, feminism, multiculturalism, LGBT propaganda, and above all, pop music, causing a breakdown of traditional Christian values. Several prominent thinkers of the Frankfurt School were Jewish, so some see Cultural Marxism as an anti-Semitic conspiracy theory.

The recent American wars in the Middle East are, to a significant extent, the outcome of the neoconservative ideology. They based their thinking on The Clash of Civilisations by Samuel Huntington. Huntington wrote that Western nations will lose predominance if they fail to recognise the irreconcilable nature of cultural tensions. He thus questioned whether multiculturalism would ever work. Huntington considered Islam a fundamental problem for the West.12 Only, Huntington himself believed that the West should adapt to a new era in which it is no longer dominant.

The neoconservatives held a different view. Leo Strauss, the founder of American neoconservatism, proposed a restoration of the vital ideas underpinning Western civilisation, such as classical Greek philosophy and the Judaeo-Christian heritage, and promoted faith in the moral purpose of the West. It is one of the reasons why the neoconservatives pressed for war to bring liberal democracy to Iraq. It was mainly due to the personal efforts of the non-Jewish Vice-President Dick Cheney, who had links to the oil industry, that this war came about. The Iraq War caused at least 300,000 civilian fatalities.

A conspiracy theorist could allege that, apart from undermining Western civilisation, the Jews also spread it by orchestrating wars and revolutions. The Protocols inspire this kind of thinking. If take the Protocols seriously, you might conclude that the Jews of the Frankfurt School and the Jewish neoconservatives secretly coordinate their actions to achieve Jewish world domination. And that the absence of evidence for this claim would be solely due to the secrecy of the operation rather than its non-existence.

Blood Libel 2.0

In 2009, the Swedish newspaper Aftonbladet ran an article about Israeli organ harvesting with the sensationalist headline ‘Our sons are plundered of their organs’. That was bad publicity for Israel. The allegations bore some similarities to the blood libel. Dead Palestinian children had been returned to their families by the Israeli army with organs missing.13 In the 1990s, Israeli doctors had taken skin, corneas, heart valves and bones from deceased Israelis, Palestinians and foreigners without permission.14

Organ trafficking is widespread. China, India, Pakistan, Egypt, Brazil, the Philippines, Moldavia, and Romania are among the world’s leading providers of trafficked organs. And China harvested organs from political prisoners. Trafficked organs are either sold domestically or exported to be transplanted into patients from the US, Europe, the United Arab Emirates, Saudi Arabia and especially Israel.15 Israel faces a shortage of organ donors because Jewish religious law requires the body to be intact in burial.16

Illegal organ trade is a questionable business but it can save lives. For poor people, the choice may come down to selling a child or selling an organ. Not allowing organ sales may make their situation even more miserable. Stealing organs from the dead is reprehensible because the deceased nor the family have given permission. These practices probably existed in Israel on a wider scale even though they likely have ended by now. It is telling that a stolen heart may have been used in Israel’s first successful heart transplant.17

Allegiance

The loyalty of Jews is another theme in conspiracy theories. Every minority in a foreign country faces the question of allegiance. It isn’t a big issue when the minority and the host country don’t have a serious conflict of interest, or when the minority has little influence. Jews have significant clout in the United States and elsewhere. In his book By Way of Deception, Victor Ostrovsky, a former operative for the Israeli intelligence service Mossad, claimed this service recruits helpers among the Jews outside Israel for its operations.18 Other secret services also enlist compatriots for espionage abroad, but the Mossad is legendary for its daring operations on foreign soil.

One of the most well-known helpers was Jonathan Pollard. As a young Navy intelligence analyst, he had claimed that the United States withheld information from its close ally, Israel. He took it upon himself to correct this injustice. He sold classified US documents to Israel. Sensitive documents stolen by Pollard ended up in the hands of the Soviet Union, putting the lives of US intelligence assets at risk. A few other cases of Israeli espionage in the United States attracted publicity, such as the arrests of former AIPAC officials Steve Rosen and Keith Weissman.

A noteworthy incident that raises questions is the Israeli attack on the spy ship USS Liberty during the 1967 Six-Day War, killing 34 Americans and wounding 170 others. The attack consisted of an air attack followed by a sea attack with gunboats. The official story is that Israeli forces mistakenly identified it as an enemy vessel. A story reported by former US Ambassador to Lebanon, Dwight Porter, who recounted a conversation between an Israeli pilot and the Israel Air Force war room picked up by an NSA aircraft and inadvertently cabled to CIA offices around the world, tells a different story:

Israeli pilot to war room: This is an American ship. Do you still want us to attack?
War room to Israeli pilot: Yes, follow orders.
Israeli pilot to war room: But sir, it’s an American ship – I can see the flag!
War room to Israeli pilot: Never mind; hit it.

It was clear to the Israelis that the ship was American. Israeli reconnaissance planes had already identified the ship as an NSA intelligence vessel earlier that day. The exchange between the pilot and the war room raises questions. What reasons could the Israelis have had? And why would they risk angering their ally, the United States? The journalist Peter Hounam claimed that President Johnson, fearing he would lose the election, sought a pretext to let the United States join the war on the Israeli side and had asked the Israelis to stage a false flag attack. That would also have been in Israel’s interest.

The intriguing coincidences surrounding the terrorist attacks of 11 September 2001 have kept conspiracy theorists on edge. One of them is that a New York housewife spotted five Israelis filming the attacks on the World Trade Center from a rooftop just after the first strike had hit the Twin Towers. The Israelis appeared full of joy as the World Trade Center burned and crumbled. The police arrested them with $4700 in cash, foreign passports and a pair of box cutters of the type used by the hijackers. Two of them were Mossad agents. The FBI believed they were spying on Islamic extremist networks.19

The FBI interrogated them for weeks and concluded that there was no evidence they had foreknowledge of the attacks. The Israelis were uncooperative. It was impossible to extract much information from them. Later, some of them discussed the events on an Israeli talk show. One said, ‘We come from a country that experiences terror daily. Our purpose was to document the event.’19 The evidence suggests the Israelis knew more, likely some specifics of the attack plan. An Israeli official told the Associated Press, ‘Everybody knew about a heightened alert and knew that bin Laden was preparing a big attack.’ He said the Israelis had passed on this information to Washington and denied Israel had concrete intelligence that could have prevented the attacks.20

The Mossad is known for its daring operations. In the aftermath of the Hamas terrorist attacks of 7 October 2023, Israel scored some remarkable successes against Hezbollah and Iran with the help of its secret services. Mossad agents had duped Hezbollah into buying thousands of explosive pagers and walkie-talkies. When Israel attacked Iran in 2025, it immediately struck a slew of high-value targets, killing senior commanders and nuclear scientists and disarming Iran’s air defences. Israel’s successes stem from intelligence operations conducted inside Iran. Commando forces operated in Tehran and across the country, while Iran’s security and intelligence agencies remained unaware. Mossad teams targeted air defence missiles, ballistic missiles, and missile launchers. Israel had already assassinated several Iranian nuclear scientists and acquired Iranian nuclear information. These attacks occurred almost immediately after the UN watchdog had declared Iran in breach of its non-proliferation obligations.

Influence on the United States government

An evangelical Christian desire to return the Jews to the Holy Land has promoted the Zionist cause in the United States, as they believe it to be a prerequisite for the Second Coming of Jesus. Consequently, there is strong support for Israel amongst Evangelical Christians and Republicans. Jewish Americans often back Democratic candidates, so Democrats pay close attention to their Jewish voters. It ensures support for Israel in both political parties. US politicians need donations to fund their campaigns. Corporations and wealthy individuals buy influence, which is bribery. Jews generously donate to political campaigns. In 2006, 60% of the Democratic Party’s fundraising and 25% of the Republican Party’s fundraising came from Jewish-funded Political Action Committees.

Several Jewish Americans found their way into influential positions in the United States government. Some were also citizens of Israel. In 1994, the Israeli paper Ma’ariv wrote that the Clinton Administration allowed more Jews in sensitive positions than any government before. The article noted that this was not a design and that their achievements had brought them there. The Jewish component of the Democratic government was significant, but there were also Jews heading for top positions in the Republican Party, for example, Paul Wolfowitz.21

Wolfowitz was one of the neoconservatives, a political movement whose ideology played a significant role in American policies after 11 September 2001. In 2000, he was one of the supporters of the Project for the New American Century (PNAC), which promoted the removal of Saddam Hussein. After 11 September 2001, the PNAC pushed for an attack on Iraq. The security of Israel played a role in the considerations of the neoconservatives, but there is little evidence that protecting Israel was a principal reason for starting the Iraq war.

Mearsheimer and Walt wrote that pro-Israel figures have established a commanding presence at the American Enterprise Institute, the Center for Security Policy, the Foreign Policy Research Institute, the Heritage Foundation, the Hudson Institute, the Institute for Foreign Policy Analysis, and the Jewish Institute for National Security Affairs and that these think tanks are all decidedly pro-Israel.4

In most cases, the US supported the position of Israel, but there are a few instances in which the US government did not. The Eisenhower administration forced Israel to withdraw from the Sinai after the Suez Crisis. The administration of Bush Sr delayed support to Israel because of the settlements in the Palestinian territories. The Israeli government and the Obama administration differed on the settlement issue and how to deal with Iran, and the Israel Lobby organised resistance in Congress and the Senate.

Protocols of the Learned Elders of Zion cover
Protocols of the Learned Elders of Zion cover

The irony of history

Perhaps the Protocols of the Elders of Zion are worth reading to see how the most bizarre conspiracy theories can appear convincing if you look at the evidence. If the Protocols had been for real, then the situation in the United States today may not have been so different. There is no grand conspiracy of Jews aiming for world domination, but what difference does that make in practice? It is the irony of history and perhaps God’s peculiar sense of humour. And so Manny Friedman wrote in the Times Of Israel:

We have, for example, AIPAC, which was essentially constructed just to drive agenda in Washington DC. And it succeeds admirably. And we brag about it. Again, it’s just what we do. But the funny part is when any anti-Semite or anti-Israel person starts to spout stuff like, “The Jews control the media!” and “The Jews control Washington!” Suddenly we’re up in arms. We create huge campaigns to take these people down. We do what we can to put them out of work.22

Did Friedman write that Jews determine who is allowed to govern in Washington DC? And perhaps the Israel Lobby has taken advice from the Protocols:

And let’s not forget AIPAC, every anti-Semite’s favourite punching bag. We’re talking an organisation that’s practically the equivalent of the Elders of Zion. I’ll never forget when I was involved in Israeli advocacy in college and being at one of the many AIPAC conventions. A man literally stood in front of us and told us that their whole goal was to only work with top-50 school graduate students because they would eventually be the people making changes in the government.22

Did he write that the Jewish interest groups act as if the Protocols were real? Perhaps the anti-Semites who believe the Protocols are real are not that imaginative. Then Friedman draws the following conclusion:

The truth is, the anti-Semites got it right. We Jews have something planted in each one of us that makes us completely different from every group in the world. We’re talking about a group of people that just got put in death camps, endured pogroms, their whole families decimated. And then they came to America, the one place that ever really let them have as much power as they wanted, and suddenly they’re taking over. Please don’t tell me that any other group in the world has ever done that. Only the Jews. And we’ve done it before. That’s why the Jews were enslaved in Egypt. We were too successful. Go look at the Torah — it’s right there. And we did it in Germany too.22

Did Friedman imply that Adolf Hitler had valid reasons to fear the Jews would take over Germany and that the proof of it is that they did so in the United States? It may be the personal opinion of a Jewish writer, but he made these comments in good spirit and as an expression of pride about his fellow Jews, and he writes what many people think. And you can plausibly interpret the evidence that way. Friedman could say it because he is a Jew, but if you are not, you are an anti-Semite. And you cannot call him a renegade or a self-hating Jew.

Jews excel in many fields, for instance, academics and finance. But pride comes before destruction and an arrogant spirit before a fall (Proverbs 16:18). The Nazis went down with their musings about Germans being a superior race. If the upper class of society coincides more and more with a small ethnic minority, ethnic tensions arise. The situation needs attention. Otherwise, this can end badly. History has taught us that too.

The Jewish people always lived at the margin and had to be resourceful to survive. These skills could have become part of Jewish culture so Jewish people could come out on top once they could operate without restrictions. And that can be at the expense of others and elicit resentment. That is not to say that there should be restrictions applying to Jews that do not apply to others. It is an instance of cultural differences causing trouble in multicultural societies. A fairer and more equitable society can also solve this issue.

Latest revision: 26 January 2024

Featured image: Blame Jews For Everything For Dummies. Found on Reuvera.hubpages.com. [copyright info]

1. On the Jewish Question. Karl Marx (1844).
2. The Bible’s Prehistory, Purpose and Political Future. Jacob L. Wright (2014). Coursera.org. [transcript]
3. Practising Tolerance in a Religious Society: The Church and the Jews in Italy. Bernard Dov Cooperman (2014). Coursera.org. [transcript]
4. The Israel Lobby and U.S. Foreign Policy. John J. Mearsheimer and Stephen M. Walt (2006). London Review of Books.
5. Do Jews Dominate in American Media? And So What If We Do? Philip Weiss (2008). Mondoweiss.net. [link]
6. Jewish power: inside the American Jewish establishment. Goldberg J.J. (1997). Basic Books. pp. 280–281.
7. Who runs Hollywood? C’mon. Joel Stein (2008). Los Angeles Times. [link]
8. Israel to pay students to defend it online. USA Today (2013). [link]
9. Israel lobby descends on UC Santa Barbara. Committee To Defend Academic Freedom at UCSB. [link]
10. ADL Spies. Jeffrey Blankfort (2013). Counterpunch.
11. Capitalism and the Jews. Milton Friedman (1988). Foundation For Economic Education. [link]
12. The Clash of Civilizations. Samuel P. Huntington (1996). Simon & Schuster.
13. ‘Our sons are plundered of their organs’. Donald Boström (2009). Aftonbladet. [link]
14. Israel harvested organs without permission, officials say. Kevin Flower and Guy Azriel (2009). CNN. [link]
15. Organ trafficking: a fast-expanding black market. Janes Defence & Security Intelligence (2008).
16. A mitzvah called organ donation. Efrat Shapira-Rosenberg (2007). Ynetnews. [link]
17. 40 Years After Israel’s First Transplant, Donor’s Family Says His Heart Was Stolen. Dana Weiler-Polak (2008). Haaretz. [link]
18. By Way of Deception: The Making and Unmaking of a Mossad Officer. Victor Ostrovsky (1990). St. Martin’s Press.
19. Five Israelis were seen filming as jet liners ploughed into the Twin Towers on September 11, 2001. The Scotland Herald (2003). [link]
29. Context of ‘August 23, 2001: Mossad Reportedly Gives CIA List of Terrorist Living in US; at Least Four 9/11 Hijackers Named’. Cooperativeresearch.org.
21. The Jews Who Run Clinton’s Court. Avinoam Bar-Yosef (1994). Maariv.
22. Jews DO control the media. Manny Friedman (2012). Times of Israel. [link]

Amish family, Lyndenville, New York. Public domain.

Towards a spirit of connectedness

A world without hope?

The future prospects for humanity appear grim. At best we manage to avoid a planetary ecological disaster. And that already may be too high an aim. So what will our future look like? Which direction should we take? Can we build a sustainable and humane world society? And what is wrong with our current way of living? Perhaps the answer can be found in a speech the native American Chief Seattle allegedly gave in 1854 when the United States government wanted to buy the land of his tribe. Here are his first words:

How can you buy or sell the sky, the warmth of the land? The idea is strange to us. If we do not own the freshness of the air and the sparkle of the water, how can you buy them?

Every part of the Earth is sacred to my people. Every shining pine needle, every sandy shore, every mist in the dark woods, every clear and humming insect is holy in the memory and experience of my people.

Only, Seattle never said this. It is fake history. It has been made up by a screenwriter in 1971. Still, the speech strikes at the heart of the matter. Nothing is sacred anymore. The pursuit of money destroys our values and our planet. For instance, it is argued that if we don’t allow the airport to expand, money and jobs will be lost. This is killing us. The speech contains some more interesting words:

This we know – the Earth does not belong to man – man belongs to the Earth. This we know. All things are connected like the blood which unites one family. All things are connected.

Whatever befalls the Earth – befalls the sons of the Earth. Man did not weave the web of life – he is merely a strand in it. Whatever he does to the web, he does to himself.

We know this deep down in our hearts but it is hard to deal with it. What can we do? The people from the environmentalist group Strohalm worked for decades on an outline for the society of the future. They were not hindered by established interests nor did a lack of perspective deter them from continuing their search. They tried to learn their lessons from history and were part of a small group of people that kept on caring and never gave up. Here is another take-away from the speech:

Even the white man, whose God walks and talks with him as friend to friend, cannot be exempt from the common destiny. We may be brothers after all. We shall see. One thing we know, which the white man may one day discover – Our God is the same God. You may think now that you own Him as you wish to own our land, but you cannot.

In 1991 Strohalm issued a booklet named Towards a Philosophy of Connectedness. It lays out their vision for a future society that is both sustainable and humane. It gives possible steering mechanisms that can help to achieve such a society. It is a vision that long seemed unattainable, not because it is impossible to do, but because vested interests stood in the way. Seattle also never said:

That destiny is a mystery to us, for we do not understand when the buffalo are slaughtered, the wild horses tamed, the secret corners of the forest heavy with scent of many men, and the view of the ripe hills blotted by talking wires. Where is the thicket? Gone. Where is the eagle? Gone. The end of living and the beginning of survival.

In 1994 I was an active member of the environmentalist movement. In this way I became familiar with Strohalm. For a long time I believed them to be naive dreamers. Most people I know do not like environmentalists. And indeed, they weren’t always realistic and sometimes decades ahead of their time. I kept on supporting their work because there is no alternative. You can’t allow realism to stand in the way of what needs to be done. And so this vision is here because of the hard work of environmentalist groups like Friends of the Earth and the Strohalm Foundation.

A new perspective

We need a new starting point, a new foundation for our culture, our beliefs and thinking and our place in the universe. There is no other choice. Small steps can’t save us anymore. We need to fundamentally change ourselves and the way we live. The planet we live on is given to us on loan to live off and not ours to destroy. Sadly, the fate of our planet does not compel us to do the right thing so God may be needed to make it happen.

As long as we do not completely change our approach to the major issues of our time, our societies will not become more humane and respectful of our planet. As long as production and consumption increase, new problems emerge faster than old problems can be solved with laws, technology, targets and other solutions.1

We are not confronted with an array of regrettable separate incidents, but with a culture that is on the loose. It is a throw-away culture in which not only materials and energy are wasted. Human relationships and values end up on the waste dump too.1

You probably know that but you may find it difficult to admit. It can make you feel hopeless. And so you may be inclined to ignore this, to focus on smaller and more concrete problems, or to withdraw yourself1 by fleeing into cynicism, new age spiritualism or conspiracy theories.

Most of us believe that massive structural changes are impossible and that we can’t influence the course of history in a meaningful way. And I can’t blame you for having what I for a long time believed to be a realistic view on this matter. And so we choose to manage existing developments with smaller measures. That is not going to help us in the end.

There is another way of looking at the situation. Acknowledging a problem is already solving it half. Our belief that nothing will help can become a self-fulfilling prophecy. As soon as there is a realistic perspective for change, many of us will let go of their cynicism and help to make it happen1 and then it can happen fast. Twenty years may be all we have left. And twenty years may be all we need.

Natural World Order

You do your job and perhaps you achieve something. Your activities do not only have the intended consequences but many others as well. If you succeed and get a promotion, a colleague might get jealous. If you go to your job by car, the exhaust gases can make other people sick.1 The unintended consequences of your actions hardly play a role in your decisions but they change our reality in unexpected ways.

The world is complex so the models we use can’t get a proper hold on what is going on. And so it appears that we can’t change our future in a meaningful way, and that at best we can anticipate what is going to happen. The failure of communism demonstrated that centralised planning does not create a happy society. That left us with capitalism and markets. They brought us prosperity while our living conditions are being destroyed.

Perhaps nature can show us the way. Organisms start relationships with each other. These relationships can become permanent if one organism makes something another organism needs and the other way around so that both benefit. For instance, plants and animals have such a relationship. Plants produce oxygen that animals need while animals produce carbon dioxide that plants need.1

Plants and animals are part of a self-sustaining cycle. They are connected. They are parts of a whole. If plants die then animals including humans die too. There are many of such relationships in nature. Such a natural order emerges spontaneously but it takes a long time. It starts with individual organisms starting relationships. These relationships can grow to a global scale as long as the external conditions allow for it.1

External conditions are like a dictate. If there were no fossil fuels then we can’t burn them. If there was no technology to build cars, we can’t drive them. External conditions are usually taken for granted but when they suddenly change then we must adapt and that can be brutal. For instance, the spread of the corona virus brought long-distance travel to a standstill. And climate change can become far worse than that.

Make no mistake. Running into the limits of our planet will be more brutal than anything that ever happened before in the course of human history. That leaves us with no other choice than setting global limits on human activities before the planet does it for us. But the sudden stop of air travel also teaches us that we don’t really need it. And there are many more things we do not need.

People, businesses and governments must deal with these limits. Once they are in place, communities, governments and businesses all over the world can reorganise themselves via communities, so that the Natural World Order will arise more or less spontaneously. Humans can make this happen fast because they can quickly change the ways they cooperate by changing their cultures. That doesn’t require planning every detail but it does require altering the steering mechanisms of our societies and economies.

One of the most important things we must change is the way we look at wealth and conspicuous consumption. Wealthy people are seen as great examples and their consumption is seen as good for the economy. If conspicuous consumption is frowned upon, there is less fun in being extremely rich, and a lot of crime becomes pointless. For example, what’s the point of risking your life by being drug dealer if you can’t drive around in your expensive cars any more? This way looking at wealth and consumption is essential to make the Natural World Order come to pass.

Steering mechanisms

Money is now the most important steering mechanism in society. Realising goals of any kind usually requires the cooperation of others and therefore money. That is understandable. Everyone needs money but it may be better that we are motivated more by our job or our contribution to society and less by money. Economic decisions are affected by interest as well. Interest is a steering mechanism. High interest rates promote short-term decisions while low interest rates promote long-term decisions. So how does that work?

If the interest rate is 5% then € 1,00 next year is worth € 0,95 now. That makes you prefer to get € 1,00 now rather than next year, even when you need the money next year simply because you can receive interest and will have € 1,05 next year. Interest reduces the value of future income and therefore the future itself. Interest makes people and businesses prefer the present to the future and short-term gains at the expense future generations.

This is why a sustainable economy requires low or even negative interest rates. Ending growth also requires negative interest rates otherwise the interest on debts can’t be paid. Interest is any return on capital so interest doesn’t depend on money but on capital. As the wealthy own most capital, interest is a flow from everyone else to the wealthiest. A humane society may therefore need to end positive interest rates. Central banks do not determine interest rates in the end. The supply and demand for money and capital do. But ending interest may soon be possible.

In markets competition is a steering mechanism. Competition promotes efficiency and progress but it also causes problems. Competition affects economic decisions.1 It can force corporations to produce as cheaply as possible or to produce stuff that no-one really needs because it can be sold at a profit. Some corporations faced with intense competion see little room to treat their employees well or to care for the environment.

If you desire that latest model, the best service, the lowest price, and want more money to buy even more stuff, you are part of the problem like many others, and that includes me. It may be strange to realise that you have enough, or even have far more than enough, and that you can do with less, older models, poorer service and higher prices, so that local businesses may survive.

Another important steering mechanism is the distribution of cost. Short-term gains are for corporations while societies deal with the long-term cost like pollution and unemployment. Education and health care are public costs that corporations often do not pay for. Taxing systems do not take into account the limits of the planet. They need to be changed in order to attribute the true cost to the products and services people buy.

Shifting taxes from labour to raw materials and energy can help. This measure can induce people to use items longer and promote repair and recycling. Corporations must be responsible for the entire life-cycle of the products they produce. Non-essential products that are harmful can be banned completely. The advertisement industry can be regulated to stop people from buying items they do no need.

Laws are a steering mechanism too. What is legal isn’t always fair. Unethical behaviour is often not punished by the law. A greater role for ethics in law is needed, most notably in matters of business. Savvy people and corporations use loopholes to their advantage or bribe politicians into changing the law into their favour. Exploiting people, misusing public funds, and harming the planet should be sufficient ground for persecution and conviction, even if the specific activity is not declared illegal.

Most people take the existing steering mechanisms for granted. A few people like the anti-globalists and religious extremists think of an alternative. Only most people would not like a reign of terror. And so we limit ourselves to taking small measures in order to reduce the fall-out. It is hard to believe that the steering mechanisms themselves can be changed. Perhaps technology will save us, we hope. That may not be the case.

The throw-away culture

Science, technology, society and culture are closely interconnected. It is fair to say that we live in a technological society and a throw-away culture. If we have a problem then we look at scientists and engineers to solve it. Even our emotional problems we address with therapy sessions and pills. This is also true for environmental problems.

A good example is perhaps a report of the Dutch research agency TNO in the 1980s about replacing milk bottles by milk cartons. Milk bottles were used many times while cartons are thrown away. The discussion that followed was about the number of times a bottle was reused, which determines whether or not the bottle is better for the environment. That depended, amongst others, on the number of times a bottles was reused.

These discussions can be useful. What was not discussed however, was the throw-away culture. Milk bottles were part of a culture of reuse that was disappearing. The cartons are part of the new throw-away culture. Discussions are about quantity, objectivity and efficiency, but not about fundamental questions about the way we live.

The things we use deserve more respect. Valuable resources and energy have been used to make them. We should not depart from them until they are worn out completely. If they are broken we should fix them until they can’t be fixed any more. And why should we buy frivolous items or make long distance trips for recreational reasons?

The fourth way

The damage done to our planet is escalating. There is a lot of excess. Nowadays there are more obese people than hungry ones. The end of our way of living is here. Communism and state planning have failed. Capitalism and free markets have failed too, but most people have yet to find out. Many countries have combined state planning with market economies and called it a third way. That didn’t change much either. Many people have become cynical. But there is no need for poverty.

It is not surprising that people distrust stories that have a claim to the truth like religions, ideologies and science. But it is the absence of great stories we can believe in that makes our societies directionless. Individuals and their desires are now at the centre stage. So is there anything left that binds us together? Sure there is. A soon as a crisis emerges people join and help each other. The future is not without hope.

There is a fourth way. It can be called the Natural World Order. It is setting limits on a planetary level and letting people deal with them via communities, governments and markets. It is not clear from the outset what will happen because this can’t be planned from the top. Developments can take different turns. For instance, if energy is to become expensive, international trade would diminish and local products would be favoured. If most people do what needs to be done then it can be done.

This is the time to act. The current order can’t be sustained. The limits of our planet should be respected. Administrating these limits would require a global government and the same laws everywhere around the planet. It can only work if people, communities and businesses help to make it become reality. It can work when we want to make it work whatever it takes. It all begins with admitting that enough is enough.

We want more stuff because the advertisement industry tells us that we need this or that product or that buying it will make us happier. Our current economic system needs growth. We must buy more to keep the economy from collapsing. That is why fundamental change freaks us out. There can be enough for everyone. Eve and Adam had everything they needed. And so we may enter the Final Gardens of Paradise that await for us at the End of History. The change is not going to be easy but there may be no alternative.

Featured image: the only known photograph of Chief Seattle taken in 1864

1. Naar een filosofie van verbondenheid. Guus Peterse, Henk van Arkel, Hans Radder, Seattle, Pieter Schroever and Margrit Kennedy (1990). Aktie Strohalm.

Confucius. Gouache on paper (ca 1770)

Morality Clause

Legal is not always fair

Legal is not always fair. The role of morality in law may be too small. People have different views about right and wrong, so the prevailing view in many Western societies is that people should be free to do as they please unless their actions harm others. Even that view can justify an increased role of ethics in judicial matters. And if moral viewpoints converge, this becomes easier. That begins with setting priorities.

We can get trapped in contentious issues. People reason according to their beliefs and political views. Debates are often framed to make the opposing view look evil:

  • Leftists might be concerned with the rights of criminals in jail but not with the rights of unborn children who are innocent of any crime.
  • Conservatives might be concerned with the fate of unborn children but as soon as they are born in misery their compassion suddenly vanishes.

Science indicates that the degree to which a fetus is a baby gradually increases during the pregnancy. If you are religious and presume that an unborn child has a soul, it becomes a discrete process. When the soul enters the fetus, it instantly becomes a baby. These are two fundamentally different views. If you have one of those particular views, it may be hard to stay moderate. If there is a soul then abortion is killing an unborn child. If there is no soul, and a fetus has an awareness similar to a mouse, it is about the right of women to decide about what happens inside their bodies.

Moral issues are often complicated. Euthanasia can be an act of compassion but it can become a way of getting rid of undesired people. Perhaps criminals have mental issues, but making them suffer can give victims a sense of justice. In business, morality long took the back seat. In other words, in business, you can do as you please as long as it is legal, and making money is a virtue.

In some areas, ethics are needed urgently. Research has shown that CEO is the job with the highest rate of psychopaths while lawyer comes in second,1 possibly because traders in financial markets were not included in the survey. Media came in third because it was a British research. Salespeople make a rather unsurprising fourth position.

Vulture capitalism

Rural areas in the United States are turning into an economic wasteland. Closed-down factories and empty malls dominate the landscape. Communities are ravaged and drug abuse is on the rise. One reason for this to happen is that jobs are shipped overseas. Several factors contributed to this situation, but a major cause is CEOs not caring for people and communities. In many cases other solutions were possible.

Paul Singer is wealthy hedge fund owner. He made a fortune by buying up sovereign debt of countries in trouble such as Argentina and Peru at bargain prices and starting lawsuits and public relation campaigns against those countries to make a profit on these debts at the expense of the taxpayers of these countries.2

In the United States Singer bought up stakes of corporations in distress. He then fired workers so that the price of his shares rose. In the case of Delphi Automotive he and other hedge fund managers took out government bailouts, moved jobs overseas, and cut the retirement packages of employees so they could make a huge profit.2

Vulture capitalists prey on patients too. They buy patents on old drugs that are the standard treatment for rare life-threatening diseases, then raise the price because there is no alternative. Martin Shkreli was responsible for a 6,250% price hike for the anti-retroviral drug Daraprim. Many people died because of his actions.3 Perhaps he should be in jail for being a mass murderer but he is not because what he did is legal.

Profiteering at the expense of the public

In the years preceding the financial crisis of 2008 there was a widespread mortgage fraud going on in the United States. Few people have gone to jail because much of what happened was morally reprehensible but legal. Financial executives and quite a few academics share this view.4 And so nothing was done. Perhaps fraud can be proven some day but that may take years if it ever succeeds.

Healthcare is another domain for fraudsters and unscrupulous corporations. Patients are often not in a position to bargain. Perhaps that is why privatised healthcare performs poorly compared to government organised healthcare. In 2015 the Dutch government introduced the Social Support Act, making municipalities responsible for assisting people who are unable to arrange the care and support they need themselves.5

The municipalities were ill-prepared so fraudsters took advantage of the situation. Most businesses are legitimate but several private contractors enrich themselves at the expense of taxpayers and people in need. The Dutch prosecution is overwhelmed by fraud cases and it is not always possible to get a conviction because of loopholes in the law. Until these loopholes are fixed, several schemes remain legal.6

In the United States hospital bills are feared. A routine doctor visit for a sore throat can result in a $ 28,000 medical bill.7 And so many people in the US go without healthcare because they can’t afford it. Efforts to reform healthcare in the US haven’t succeeded, perhaps because those who send $ 28,000 bills for sore throats have plenty of money to bribe politicians into keeping the US healthcare system as it is.

Attributes of the law

First we have to recognise why it is so hard to prevent these things from happening. On the political front it is because once politicians are elected, they can do as they please until the next election. Lobbyists prey on them. Citizens have few means of correcting politicians, except in Switzerland. The Swiss have direct democracy. Swiss citizens can intervene in the political process when they see fit and fix laws if they think that is needed. Direct democracy might help to fix many of these issues.

Laws are often made with the best intentions but it is not possible to test them in a simulation to see how they will work out in practice. So once laws are enacted, unexpected problems pop up. The process of law-making is slow and it can take years before issues are fixed, at least if they are fixed at all because law-making is often political process, and that can make it rather complicated.

Even more importantly, the underlying principles of law benefit the savvy. The system of law is the way it is for good reasons. No one should be above the law and people as well as businesses should not be subject to arbitrariness. The rule of law implies that every person is subject to the law, including lawmakers, law enforcement officials, and judges. It is agreed that the law must be prospective, well-known, and general, treat everyone equally, and provide certainty. Only, in reality, not everyone is treated equally.

Laws being prospective means that you can only be convicted for violation of laws in force at the time the act was committed. Legal certainty means that the law must provide you with the ability to behave properly. The law must be precise enough to allow you to foresee the possible consequences of an action. Businesses prefer laws to stable and clear. Corporations invest for longer periods of time. If laws change they may face losses. If laws are not clear, investments won’t be made, and a country may end up poorer.

With the rise of neo-liberalism came the era of shareholder capitalism. Making profits became a goal in itself. Greed was considered good. Wall Street traders and CEOs were seen as heroes even when they were just psychopaths outsourcing jobs for profit. There was little consideration for the planet, people and communities. Consumers preferred the best service at the lowest price so businesses were pressed into cutting costs and moving jobs to low-wage countries. Ethics in business were a marginal issue at best.

A bigger role for ethics

More and more people believe that ethics should play a bigger role in business. Activists pressure corporations. That may not be enough. Corporations must be competitive and can’t make real changes if that increases their costs. Levelling the playing field with regulations is an option but that may not be sufficient. The law needs a morality clause, making unethical behaviour unlawful, even though the action itself is not explicitly stated as forbidden in the law. That increases the cost of unethical behaviour.

A randomly selected jury of laypeople could make verdicts on these issues. Perhaps the legal profession should stay out of these matters because it is not a legal matter in the first place. There are a few issues that come with a morality clause. Ethics in business can be a political issue. People may differ on what kind of behaviour is ethical and people may differ on what kind of unethical behaviour should be punished.

Introducing a morality clause to enforce ethical behaviour in business affects legal certainty. It will be harder for businesses to predict whether or not a specific action is legal. Business owners may incorrectly guess moral sentiment and believe they did nothing wrong. The uncertainty that comes from that might reduce the available investment capital for questionable activities. But that may not be so bad. And if immoral profits and bonuses from the past are to be confiscated, it affects the prospectiveness of the law.

International treaties like the Transatlantic Trade and Investment Partnership (TTIP) have been set up to accommodate the unethical practices of corporations and to protect those corporations from making those unethical practices unlawful. That is often what reducing the regulatory barriers to trade like food safety laws, environmental legislations and banking regulations often amounts to in practice.

In most cases, it can be known beforehand what actions are unethical. For instance, investors in corporations that extract fossil fuels should know that burning fossil fuels causes climate change. They are gambling on the future of humanity. So if some countries decide to outlaw the use of fossil fuels then these investors should not be compensated.

Perhaps you have serious doubts about this proposal as it upsets the very foundations of the current system of law. And I can imagine that you think: “Where does this end?” But there is something very wrong with the current system of law. Business interests often take precedence. So do you want the law to protect the psychopaths who maximise their profits at the expense of people and the planet? And do you really think that the law can be made without failures so that corporations and savvy people can’t exploit them?

Featured image: Confucius. Gouache on paper (ca 1770).

1. The Wisdom of Psychopaths: What Saints, Spies, and Serial Killers Can Teach Us About Success. Kevin Dutton (2012).
2. The death of Sidney, Nebraska: How a hedge fund destroyed ‘a good American town’. Charles Couger, Alex Pfeiffer (3 December 2019). Fox News. [link]
3. Vulture capitalists prey on patients. The Sacramento Bee (22 September 2015). [link]
4. How Mortgage Fraud Made the Financial Crisis Worse. Binyamin Appelbaum (12 February 2015). New York Times. [link]
5. Social Support Act (Wmo 2015). Government of the Netherlands. [link]
6. Gemeenten starten onderzoek naar Albero Zorggroep. Eelke van Ark (31 October 2019). Follow The Money. [link]
7. How a routine doctor visit for a sore throat resulted in a $28,000 medical bill. CBS News (31 December 2019) [link]

Beautiful countryside in southern California

Capital for the future

Making the economy sustainable may require an unprecedented amount of capital in the form of knowledge and outfits like solar panels, sustainable farms and energy-efficient transportation systems. It is hard to imagine that it can be done. And imagining it is still a lot easier than really doing it. It is going to require some economic magic to divert investment capital from destructive activities to the future of humanity. We may need more useful capital and less consumption.

Perhaps the invisible hand can be of some help. It is easier to finance a great endeavour from investments than from taxation because nobody wants to pay taxes but everybody is happy to invest. It is the secret of the success of the European empires that conquered the world after the Middle Ages. England, France, Spain and the Netherlands were much poorer and smaller than China, India or the Ottoman Empire, but they didn’t finance their conquests with taxation, but with the use of investment capital.1

Europe won out because European conquerors took loans from banks and investors to buy ships, cannons, and to pay soldiers. Profits from the new trade routes and colonies enabled them to repay the loans and build trust so they could receive more credit next time.1 The same logic may need to be applied to making the economy sustainable. The challenge is so enormous that it may never be possible to finance it by taxes. Nowadays interest rates are so low because there is plenty of investment capital.

It’s the economy stupid!

It is often argued that the economy is unsustainable because of short-term thinking. The economy must grow in order to have positive returns on investments. And it is believed that returns on investments need to be positive otherwise the economy would collapse. The economic time horizons of individuals are reflected in their time preferences. The time horizon of the economy as a whole is reflected in the interest rate.

The lower the interest rate, the longer the time horizon of the economy could be. The following example from the Strohalm Foundation can illustrate this:

Suppose that a cheap house will last 33 years and costs € 200,000 to build. The yearly cost of the house will be € 6,060 (€ 200,000 divided by 33). A more expensive house costs € 400,000 but will last a hundred years. It will cost only € 4,000 per year. For € 2,060 per year less, you can build a house that lasts three times as long.

After applying for a mortgage the math changes. If the interest rate is 10%, the expensive house will not only cost € 4,000 per year in write-offs, but during the first year there will be an additional interest charge of € 40,000 (10% of € 400,000).

The long-lasting house now costs € 44,000 in the first year. The cheaper house now appears less expensive again. There is a yearly write off of € 6,060 but during the first year there is only € 20,000 in interest charges. Total costs for the first year are only € 26,060. Interest charges make the less durable house cheaper.2

Without interest there is a tendency to select long-term solutions. Interest charges make long-term solutions less economical. Interest promotes a short-term bias in the economy. It may explain why natural resources like rainforests are squandered for short term profits. If interest rates are high, it may be more profitable to cut down a rainforest and to put the proceeds at interest rather than to manage the forest in a sustainable way.

Only, things are not as simple as the example suggests. For example, the building materials of the cheap house might be recycled to build a new house. And technology changes. For example, if cars had been built to last 100 years, most old cars would still be around. This could be a problem as old cars are more polluting and use more fuel. Nevertheless, the example shows that long-term investments can be more attractive when interest rates are lower.

This also applies to investments in renewable energy. For instance, a solar panel that costs € 100, lasts 15 years, and generates € 150 worth in electricity in the course of these 15 years, is feasible at an interest rate of 5% but not at an interest rate of 10%. Many investments in making the economy sustainable may have low returns and are only feasible when interest rates are low. Low and negative interest rates can also deal with low economic growth. That may be needed for living within the limits of the planet.

Living within the limits of the planet

When interest rates are negative, the time horizon of the economy could go to eternity so that it makes sense to invest in making the economy sustainable. A few examples from history can illustrate this. In the Middle Ages some areas in Europe had currencies with a holding fee like Natural Money. As there hardly was economic growth, interest rates were negative. It was the era of Europe’s great cathedrals. These cathedrals were built for eternity. As better investment opportunities were absent, wealthy towns people spent their excess money on cathedrals.3 For similar reasons, the people of Wörgl planted trees as the proceeds of the wood were expected to occur in the distant future.3

A bit of calculus shows why. At an interest rate of 5%, putting € 1 in a bank account turns into € 1,05 after a year, so you would rather have € 1 now than in one year’s time, even when you need the money in one year’s time. That’s because you can put the money on a bank account at interest. At an interest rate of 5%, € 100 in one year’s time is worth € 95.25 now. The distant future has even less value. The same € 100 in one hundred year’s time is worth only € 0.59. And € 100 after 1000 years has no value at all in the present.

At an interest rate of -5%, you would prefer to have the money when you need it, otherwise you would end up with less. At an interest rate of -5%, € 100 in one year’s time would be worth € 105. The same € 100 in one hundred year’s time would be worth € 13,501 now. And € 100 after 1000 years would be worth more than everything there is in the present. Income in the distant future is also very uncertain, so it is unlikely that investors will shift their time horizon to 1,000 years, but this logic may help us to come into terms with the limits our planet poses on human activities.

Living within the limits of the planet may require unprecedented investments in the future. These investments may require low or even negative interest rates as their returns may be low. Only low and negative interest rates can make these investments economical. Everyone who has money to save can help by shifting money from consumption to saving and investing. The more people act like capitalists, the lower interest rates may go, and the more sustainable the economy may become.

Capitalists think that money spent on a frivolous item is money wasted, because when you invest your money, you will have more money that you can invest again. Capitalists hardly care about interest rates. They will save and invest anyway because of their capitalist spirit. Rich people may be encouraged to save even more if luxuries that use a lot of natural resources and energy aren’t available any more. One can think of luxury yachts, private jets, but also of travel by airplane for holidays. When energy becomes a constraint, local products may replace long-distance trade.

Featured image: Beautiful countryside in southern California. James McCauley (2005). Wikimedia Commons. Public Domain.

1. A Brief History Of Humankind. Yuval Noah Harari (2014). Harvil Secker.
2. Poor Because of Money. Henk van Arkel and Camilo Ramada (2001). Strohalm.

What’s the use of politics?

Politics is worthless many people agree. For that reason, the use of politicians may need some clarification. Humans became the dominant animal species because they cooperate in large numbers in a flexible way. This makes us unique in the animal world. Some animals such as ants and bees can cooperate in large numbers, but they are not flexible in the ways they do that. Their cooperation is based on their genetic code. Social animals like chimpanzees, elephants, wolves and dolphins can cooperate more flexibly, but not in very large numbers. Cooperation in a chimpanzee band, an elephant band or a wolf pack is based on the intimate familiarity of the band members.1

Language is a tool for human cooperation. Animals have languages too. Animals can communicate about the whereabouts of food or enemies. Only, human language is used for many more things. Most notably, humans gossip and talk about what other people are doing and thinking. This gives them better information about other people in the group so that they can develop more sophisticated ways of cooperating. Apes like chimpanzees, baboons and gorillas all show interest in social information, but they have trouble gossiping because their languages don’t allow for that.1

The truly unique feature of human language is not gossip, but its ability to transmit information about imaginary things. All forms of large-scale human cooperation, such as nation-states, churches, cities and corporations, are rooted in fictions that exist only in the collective imagination of human beings. Myths, like the existence of gods, laws, corporations and nation-states, gave humans the unprecedented ability to cooperate flexibly in very large numbers. For example, churches are based on common religious beliefs. Religious beliefs make it possible that Christians who never met before can do things together like going on a crusade or building a hospital.1

Religions and ideologies have a lot in common. You could call them myths or models of reality. Religions as well as ideologies maintain there is a superhuman order of universal laws that govern the world, which should guide human actions. For example, Buddhists believe that the law of nature was discovered by Siddhartha Gautama. Communists believe that the laws of nature were discovered by Karl Marx. Like other religions, Communism had its holy scriptures and prophetic books such as Das Kapital, which prophesied that history would soon end with the inevitable victory of the proletariat over the capitalist system.1

So what does this have to do with politics? In democracies, people can decide about what needs to be done and determine who should do what. Politics involves discussing collective imaginations such as laws, nation-states, religions and ideologies to determine what course of action should be taken as well as gossip to determine who should do what, for instance, who is going to be the leader of a political party or a nation. Many people nowadays believe that democracy is the best political system, even though democracy has disadvantages too.

Politicians may not do what they promised their voters to do. There might be an intense political struggle. And politics might result in poor decisions when voters don’t like the measures that need to be taken. In times of upheaval, people might opt for someone who promises to take drastic action, for instance when the economy has collapsed or when insurgents and criminals wreak havoc. The most notorious example in history was the rise of Adolf Hitler. The suffering of the Germans during the Great Depression and the inability of politicians to relieve their plight helped Hitler to grab power.

Even in stable and established democracies, citizens may have little faith in politicians. The politicians in parliament do not represent the makeup of the population at large. People who like to talk, like lawyers and teachers tend to be overrepresented. Engineers who know how systems work tend to be underrepresented, which may explain why laws often fail to meet the intended objectives. The same applies to poor people and people with little education, which may explain why their interests are often neglected. Perhaps giving citizens more responsibility via direct democracy can help to solve these issues.

Featured image: House Of Commons in the United Kingdom. Parliament.uk. [link]

1. A Brief History Of Humankind. Yuval Noah Harari (2014). Harvil Secker.