FTR#552—Update on The Formula and the Standard/I.G. Agreement of 1929—(One
30-minute segment) (Sources are noted in parentheses.) (Recorded on 5/7/2006.)
Note: FTR#’s 260-316, 317,
324, FTR#325 and succeeding programs are streaming
on Real Audio at www.wfmu.org/daveemory.
FTR#’s 01-270, 316-324 are available for download
only, also on Real Audio, on their Archive Page.)
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their understanding of the material. The search function can be accessed at: http://www.spitfirelist.com/FTR_search.html. NOTE: TWO
LECTURES PRESENTING MR. EMORY’S VIEWS OF WHAT WE CAN EXPECT IN THE FUTURE ARE
NOW AVAILABLE FOR DOWLOAD FOR FREE IN
BOTH REAL AUDIO AND MP3. These lectures are:
L-1: ‘The Political Implications of the UFO Phenomenon and the ‘ET’ Myth’; and
L-2: ‘The Future--Technology, Theocracy and the Thousand-Year-Reich.’
Descriptions are available in the Lecture Series section. NEW!! A number of
vitally important books are now available for download for FREE. The books are:
Martin Bormann: Nazi in
Exile by Paul Manning; The Nazis Go Underground
by Curt Reiss; and All Honorable Men (parts 1 and 2) by James
Stewart Martin. Taken together, these books will provide a significant
understanding of the concept and reality of The Underground Reich, and they can
be downloaded with a modem Internet connection. They are available at: Spitfirelist.com/Books. In addition, we have added Cairo to Damascus by John Roy Carlson [1951], Germany Plots with the Kremlin by T.H. Tetens [1953], and Armies of Spies by Joseph Golomb [1939].
Yet another recent addition is Germany’s
Master Plan by Joseph Borkin and Charles Welsh. (Borkin is the author of
the 1979 classic The Crime and Punishment
of I.G. Farben.) Another anti-fascist classic about I.G. Farben supplements
the Borkin and Welsh text—Treason’s Peace
by Howard Watson Ambruster. Two more recently-posted gems are The Thousand-Year Conspiracy by Paul
Winkler and Falange by Alan Chase,
both published in 1943. The Winkler text documents the evolution of militant
Pan-Germanism from the Teutonic Knights to the Nazis and Falange documents the Third Reich’s geopolitical goals in the
Spanish-speaking world. By the time many of you read this description, more of
the long-out-of-print anti-fascist books that are more than 50 years old will
have been added to the Spitfirelist.com/Books URL. The Manning text’s URL also features a discussion of
Paul Manning’s career and professional credentials. Martin Bormann: Nazi in Exile is also available in html. Note also that FTR#305
has a synoptic overview of the Bormann organization. An understanding of the
Bormann organization is essential for an in-depth grasp of the arguments
presented on For The Record. Note also that U.S. Government documents proving Prescott
Bush Sr.’s Money-Laundering on behalf of the Third Reich before and after World
War II are available at a linked website, along with commentary by John
Buchanan, who located the documentation. This material is discussed in FTR#435.
The website containing the documents is www.debatecomics.org/BushFamilyFortune/. Summary of FTR#552—(Note: The massive
volume of ‘For The Record’ programs about 9/11 and related topics is summarized
and analyzed in the periodically-updated description for FTR#391.
FTR#’s 454,
455, 456 are compilations of
much of the key documentation culled from Mr. Emory’s investigation into 9/11.
Along with FTR#391, they should give
listeners/readers a substantive grasp of this momentous event. It is
recommended that listeners use this description and e-mail it to others.) 1.
As Mr. Emory had
forecast in, among other programs, FTR#’s 278, 385, and FTR#506, the hydrogenation process that was at the core
of the Standard/I.G. Agreement of 1929 is once again emerging as a commercially
viable process for the manufacture of motor fuel. With the price of oil being
as high as it is now, the process is being utilized to turn a variety of
materials into oil, including coal, the original source material for the
hydrogenation process as developed by I.G. Farben in the early 1920’s. A
consortium of European companies is working to exploit the coal-to-liquid
variant of the Fisher-Tropsch (hydrogenation) process in order to manufacture
clean-burning diesel fuel. In this context, do not overlook the fact that the
Bormann capital network controls the major German corporations, as discussed in
FTR#305. “DaimlerChrysler,
Renault, Royal Dutch Shell, Sasol Chevron and the Volkswagen group are
launching an association-The Alliance for Synthetic Fuels in Europe (ASFE)-to
promote synthetic fuels in Europe and to support research, demonstration
projects, and public-private cooperation in the area. ASFE is focusing on
synthetic fuels made with the Fischer-Tropsch (FT) process from natural gas
(Gas-to-Liquids, GTL), coal (Coal-to-Liquids, CTL) or biomass
(Biomass-to-Liquids, BTL). The Fischer-Tropsch process produces a range of
near-zero sulfur and aromatics transport fuels and chemicals. Of the three
processes, GTL is the most commercially advanced, with a few major of plants
being built or planned worldwide and the prospect of increasing product
availability from 2006 onwards. BTL-‘second-generation biofuels’-needs further
R&D investment is of great interest to European policymakers.” (“Alliance for Synthetic
Fuels Launches in Europe”; 3/7/2006; accessed at: http://www.greencarcongress.com/gastoliquids_gtl/.) 2.
“While the fuels resulting from the Fischer-Tropsch process
are cleaner-burning in operation, thereby resulting in reductions in tailpipe
emissions (particulate matter, oxides of nitrogen, carbon monoxide and
hydrocarbons), the production process itself is energy-intensive and can throw
off a large amount of carbon dioxide. The use of CTL or GTL fuels results in
greenhouse-gas emissions comparable to those produced by burning
petroleum-based fuels, while the F-T fuels produced from biomass can contribute
to vehicular greenhouse gas reductions of up to 90%-an important aspect of the
fuel for European automakers, who must meet reduced CO2 emission standards.” (Idem.) 3.
Reviewing
information presented in FTR#544,
we view how another variant of the process—gas-to-liquid or GTL-- is being
utilized to turn natural gas into motor fuel. Note that many of the major oil
companies, including ExxonMobil and Chevron—both members of the old Standard
Oil Trust—are involved in the development of this technology. “A novel way to create an ultra-clean fuel for cars that
uses natural gas instead of oil is on the verge of rapid growth, analysts say,
driven by soaring oil prices and a thirst for alternative fuels. Oil companies
are investing billions in the nascent technology, called ‘gas-to-liquids’ or
GTL, which can be used to produce quality diesel and a range of other products
normally derived from crude. The process was developed in Nazi Germany and
apartheid South Africa, but in a few weeks will be tested on a commercial scale
for the first time when the largest plant so far opens in Qatar. [Italics
are Mr. Emory’s.] The Oryx GTL plant, a joint venture between South Africa’s
Sasol and Qatar Petroleum, is being watched closely by competitors and
investors looking for the next big thing in energy. . . . Carmakers are also
interested. Royal Dutch Shell is working with Toyota, Volkswagen and
DaimlerChrysler to create vehicles that run on pure GTL diesel, which combines
high power with extremely low emissions. . . . Shell and ExxonMobil plan to
build much larger GTL plants in Qatar. . . . Nigeria has a plant under
construction, built by Sasol and Chevron. BP plans to build a plant in
Colombia. . . .” (“Oil Giants Look to Gas Alternative” by Thomas
Catan; The Financial Times; 3/6/2006; p. 15.) 4.
A previous Financial
Times article discussed the genesis of the GTL process: “To be sure, GTL has been around for a while. The basic
process was invented in the 1920’s and then developed by Nazi Germany and
apartheid South Africa—both of which had problems getting enough petrol for
their vehicles. Initially, it was used to turn coal into a liquid.
[Italics are Mr. Emory’s.] Today, it is used to turn natural gas into a clean
burning fuel for use in diesel engines, naptha, lubricants and a range of other
products. . . . .” (“Ambition to
Become the World Capitol of Novel Technology—Gas-to-Liquid” by Thomas Catan; The
Financial Times; 5/19/2005; accessed at: http://firstnews.com.ua/en/techno.html?id+51423.) 5.
Next, the program
reviews information from FTR#385.
In that program, Mr. Emory discussed the background of the Standard-I.G.
Agreement. (More background information about this agreement is presented in FTR#506.) The
Standard-I.G. Agreement of 1929 was similar, in certain respects, to what has
become known as a “debt-equity swap.” I.G. had invested a great deal of capital
into “R&D” (research and development) of the hydrogenation process in order
to utilize Germany’s large coal reserves to synthesize oil—Germany has no
domestic petroleum reserves. As a result of its enormous expenditures in this
regard, I.G. Farben’s financial situation was precarious. Standard Oil of New
Jersey--the most important of the Standard firms (later Exxon, now
Exxon-Mobil)--recognized that the successful development of the hydrogenation
process had the potential to threaten its profit position by freeing industrial
economies from dependence on naturally-produced oil. The two companies
negotiated the Standard-I.G. Agreement of 1929—satisfying the needs of both
companies. Through this agreement, I.G. Farben received: a significant
block of Standard of New Jersey’s stock (making it the second largest stock
holder in the firm behind the Rockefeller family), as well as the right to
produce and market synthetic fuel developed by hydrogenation in Germany only.
This gave I.G. Farben badly needed capital and guaranteed Germany’s access to
hydrogenation-produced synthetic oil. Through this agreement, Standard Oil
of New Jersey received: the exclusive right to produce and market
synthetic oil developed through the hydrogenation process everywhere but in
Germany. This assured Standard’s profit position by protecting against the
potential threat posed by synthetic oil. 6.
During World War II,
I.G. Farben’s hydrogenation plants provided Germany with the bulk of its fuel,
thus realizing some of the potential of the Standard-I.G. Agreement. The 1944
aerial campaign against the largest of those plants, the giant I.G. facility at
Leuna, was one of the pivotal engagements of the air war in Western Europe.
“The Battle of Leuna” was instrumental in crippling Germany’s war machine.
Although Germany managed to keep the plant operating by cannibalizing equipment
from other hydrogenation facilities, the resulting damage to the overall
synthetic oil program was a decisive element in the destruction of the fuel for
Germany’s war machine. (“The Battle of Leuna” is discussed in FTR#506. See also: The
Crime and Punishment of I.G. Farben; by Joseph Borkin; The Free Press
[Macmillan]; Copyright 1978 [HC]; ISBN 0-02-904630-0; pp. 128-30.) 7.
In the early 1990’s,
the Leuna refinery (which had been rebuilt by the Soviets after the war) became
the focal point of a complex deal involving the French oil firm ELF-Aquitaine,
the Thyssen heavy industrial firm and the Saudi Arabian armaments industry.
This deal, in turn, is at the center of an ongoing scandal in Germany involving
political payouts to the CDU party of former Chancellor Helmut Kohl, bribes
allegedly made by French politicians, kickbacks involving powerful Canadian
political and economic interests, and the intelligence services of numerous
countries. In turn, the CDU funding scandal is inextricably linked with the
Underground Reich. (For more about the CDU funding scandal, see FTR#’s 193, 276, 278.) The intense interest
on the part of major political and industrial interests in this renovated
Second World War facility is of particular significance in this context. Most of the industrial infrastructure of the former East
Germany was bought out and liquidated (with enormous resultant hardship for the
citizens of that part of Germany) shortly after reunification. In contrast, the
former I.G. facility at Leuna was considered a valuable prize. The maneuvering
around the Leuna facility and the CDU funding scandal was instrumental in
convincing Mr. Emory that The Formula was of more than mere literary
significance. It convinced him that that fact-based novel would have to be
discussed at some future point. 8.
The novel The
Formula revolves around the formula for a catalyst (“the Mangan Catalyst”)
developed by I.G. Farben as part of its “Genesis Project.” The significance of
the project lies in the fact that it greatly improved the efficiency of the
hydrogenation process, streamlining Germany’s synthetic fuel production
capacity and (potentially) making the hydrogenation process economically
competitive with naturally-produced petroleum. In the novel, the post-1973
increase in the price of oil makes the “Formula” a pivot-point of clandestine
intrigue. Consider the significance of the
hypothetical existence of such a formula. It would: potentially control
petroleum-producing countries (including the former USSR and the Middle-East
oil kingdoms) by threatening their economic foundation; offer the key to
manipulating the economies of non-oil producing industrial economies by
potentially freeing them from the need to import oil; control the “profit
position” of the major oil companies; and legally freeing Germany from
the need to import oil—I.G.’s successor companies would have retained the right
to produce hydrogenation-derived oil. Given the improvements in organic
chemistry and other technologies in years since World War II, it seems unlikely
that something like the“Mangan Catalyst” (or an analogous technological
development) would not have been developed. 9.
In the
context of the emphatically hypothetical, interrogatory nature of FTR#385, one should not lose
sight of the fact that the world’s natural petroleum reserves are
limited, and will be exhausted within a few decades. The motivation of the
petroleum-producing countries and the oil companies themselves to extract the
remaining oil from the ground at “top dollar” before bowing to the inevitable
would, therefore, be considerable under the circumstances. This should be
evaluated as one delves into the text and substance of this fact-based work of
fiction. IN THIS CONTEXT, IT IS ALSO OF MORE THAN PASSING INTEREST THAT HIS
ENERGY CONSULTANTS (A SUBSIDIARY OF THYSSEN INDUSTRIES) IS THE EPICENTER OF THE
“PEAK OIL” HYPOTHESIS. THIS IS THE CONTENTION THAT THE WORLD’S OIL SUPPLY IS
ALREADY NEARING EXHAUSTION. WITH THYSSEN HAVING PURCHASED THE LEUNA FACILITY IN
THE EARLY 1990’S, IT IS IMPORTANT TO NOTE THAT THYSSEN STANDS MUCH TO GAIN FROM
A COMMERCIAL EXPLOITATION OF THE HYDROGENATION PROCESS. NOTE ALSO THAT THE
ROCKEFELLERS OWN A MAJOR SHARE IN THYSSEN. OF COURSE, THE ROCKEFELLERS ARE
PRINCIPAL OWNERS OF THE STANDARD OIL COMPANIES, ALONG WITH THE BORMANN CAPITAL
NETWORK. FOR MORE ABOUT THE PEAK OIL SCAM, THYSSEN, HIS ENERGY CONSULTANTS, AND
THE LEUNA FACILITY, SEE FTR#506.
FOR MORE ABOUT THE BORMANN CAPITAL NETWORK’S PARTICIPATION IN STANDARD OIL, SEE
FTR#305. 10.
In one of The
Formula’s climactic moments, “Steiffel” reveals to “Caine” the future of
the “Mangan catalyst,” and the hydrogenation process. In this context, as well,
it is interesting to contemplate the Bush administration’s renewed emphasis on
coal production. (See, among other programs, FTR#289.) “Steiffel walked up to the big glass window, and Barney
sat down in a chair facing the circular desk. ‘Don’t feel too disheartened,
son,’ Steiffel said, turning to Barney. ‘We will manufacture synthetic fuel.
And in great quantity. We already own most of the coal in the country. We know
what’s coming. We have the formula. We have the Mangan catalyst, and we have
the technology. But we must be certain of profit. By 1990, the country will be
on its knees to OPEC. The government will then turn to us. And in their
desperation they will insure our profit position in the manufacture of
synthetic fuel.’” 11.
In this same scene,
Steiffel explains the political economics of the hydrogenation process and the
Mangan catalyst. Does this dynamic mirror reality? “ ‘Why?’ Barney
asked. ‘What’s wrong with making America self-sufficient in synthetic fuel?’” 12.
It has been said
that “art imitates life.” Indeed. Perhaps the reverse is true as well. As we
peer into the darkness of the future, consider “Caine’s” confrontation with
“the old man”—“Barney Steiffel.” It is important to remember that the
violence in the Middle East—including the invasion of Iraq—is one of the
factors driving up the price of oil and, as a result, making synthetically
produced oil more competitive with oil taken straight from the ground. “ ‘What happens when
there’s no more profit left to squeeze from the citizens? When the whole
goddamn world is on its knees?’ Barney asked angrily.” 13.
Lending substance and considerable credibility to Mr. Emory’s musings
about the possible existence of a technology analogous to the Mangan catalyst,
a recent article noted that two U.S. researchers have introduced a catalytic
process to make the conversion of coal into oil (CTL technology) more efficient
and economically viable. Have they innocently duplicated a previously-existing
technology? Or did someone deliver the catalytic process to the researchers “in
a brown paper bag?” “As the cost of oil soars
and worries over the U.S. dependence on foreign petroleum escalate, coal is
becoming an increasingly attractive alternative as a feedstock to make a range
of fuels. Now chemists have invented a new catalytic process that could
increase the yield of a clean form of diesel made from coal. The method,
described in the current issue of the journal Science, uses a pair of catalysts
to improve the yield of diesel fuel from Fischer-Tropschs (F- T) synthesis, a
nearly century-old chemical technique for reacting carbon , monoxide and
hydrogen to make hydrocarbons. The mixture of gases is produced by heating
coal. Although Germany used the process during World War II to convert coal
to fuel for its military vehicles, F-T synthesis has generally been too
expensive to compete with oil. [Italics are Mr. Emory’s.]”
(“Clean Diesel from Coal” by Kevin
Bullis; Technology Review; 4/19/06; accessed at: http://www.technologyreview.com/read_article.aspx?id=16713&ch=biztech.) 14.
“Part of the problem with the F-T process is that it
produces a mixture of hydrocarbons - many of which are not useful as fuel. But
in the recent research, Alan Goldman, professor of chemistry and chemical
biology at Rutgers University, and Maurice Brookhart professor of chemistry at
the University of North Carolina at Chapel Hill, use catalysts to convert these
undesirable hydrocarbons into diesel. The catalysts work by rearranging the
carbon atoms, transforming six-carbon atom hydrocarbons, for example, into two-
and ten-carbon atom hydrocarbons. The ten-carbon version can power diesel
engines. The first catalyst removes hydrogen atoms, which allows the second
catalyst to rearrange the carbon atoms. Then the first catalyst restores the
hydrogen, to form fuel. Diesel fuel produced in this way has several potential
advantages. Ordinary diesel contains molecules, called aromatics, that, when
combusted, produce particulates, Goldman says. But the diesel formed by the new
catalysts does not include aromatics, so it burns much cleaner, overcoming one
of the major objections to diesel fuel. This could lead to more vehicles using
diesel engines, which are about 30 percent more efficient than gasoline
engines.” (Idem.) 15.
“But the biggest advantage may be that the United States has
huge amounts of coal: ‘We have as much energy in coal as the rest of the world
has in oil. That's enough to last us the next hundred years or so,’ Goldman
says. ‘Thus, a more efficient, and so less expensive method of converting coal
to diesel could significantly cut U.S. dependence on foreign oil, and do so for
a long time.” (Idem.)
“ ‘Nice,’ Barney said.”
“ ‘Business,’ Steiffel replied, ‘just
business.’ He crossed from the window and walked toward Barney. ‘We are a team
of giants nursing the lullaby of the masses.’”
“Steiffel sat down on the sofa opposite Barney and peered across at him in the
dim light. ‘You mustn’t think of us as evil, rapacious men, clinging to the
keys of our numbered Swiss accounts. On the contrary, we are a small family of
simple businessmen seeking only the tranquil pursuit of profit. And we take
great care to bestow sufficient largess on the citizens.’” (The
Formula; by Steve Shagan; Copyright 1979 Cirandinha Productions, Inc.; Soft
Cover edition published in 1980 by Bantam Books; 0-553-13801-4; pp. 330-331.)
“The old man stared at Barney with a look of total wonder. ‘Do you honestly
expect a three-hundred-billion-dollar industry to undermine its own stake in
the lucrative scarcity of oil by mass-producing synthetic fuel?’”
“Steiffel walked back to his desk and sat down. ‘We’ve had that formula in our
possession since the conclusion of the war. British Intelligence turned it over
to our chemists in early ’46. We even imported a few German scientists to build
pilot hydrogenation plants, to be certain the process was economically unsound.
We terminated those plants in ’56. But’—he paused—‘that was twenty-two years
ago. Things change. The price of crude oil has risen dramatically since ’73,
making the production of synthetic fuel an economic possibility. The Genesis
Formula makes it an economic reality. Therefore, we could not risk the formula falling
into the wrong hands.’” (Ibid.; pp. 326-327.)
“The old man looked up at the ceiling for a moment, then stared at Barney. ‘In
that case, the cartel performs its historic duty. We unleash the dogs of war.
There are those times when war is both economically and ecologically necessary
for the ultimate survival of the species.’” [Italics are Mr. Emory’s.] (Ibid.; p. 331.)