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This article appears in the April 18, 2003 issue of Executive Intelligence Review.

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Why the Democratic Party Failed
To Function in This Crisis

by Anton Chaitkin

In the weeks leading up to the invasion of Iraq, the world's governments and millions in the streets spoke out against the impending disaster. Demonstrators protested within the United States as well. But except for the LaRouche wing and scattered individual politicians, the Democratic Party—the putative opposition—was frozen, intimidated. Its new controllers had locked the former party of Franklin Roosevelt and John Kennedy into complicity.

Shamefully, key Democratic leaders had stood publicly at the White House on Oct. 2, 2002, announcing they would give a "bipartisan" blank check, authorizing an insane war on Iraq. Flanking President Bush were Senators Joseph Lieberman (Conn.) and Evan Bayh (Ind.), and Rep. Dick Gephardt (Mo.) (Bayh was then chairman of the Democratic Leadership Council and Lieberman and Gephardt were past chairmen), Republican Sen. John McCain (Ariz.), and the two Republican official leaders of the Senate and House. (The Democratic leader in the Senate, Tom Daschle, did not initially support the agreement.)

As the nightmare approached, Sen. Robert Byrd (D-W.V.) addressed a nearly deserted Senate chamber on Feb. 12, warning that "every American on some level must be contemplating the horrors of war. Yet, this Chamber is, for the most part, silent—ominously, dreadfully silent. There is no debate, no discussion, no attempt to lay out for the nation the pros and cons of this particular war. There is nothing. We stand passively mute in the United States Senate, paralyzed."

Once the war began, the Democrats, like whipped dogs, joined in approving a resolution lauding Bush's leadership, unanimously in the Senate, with tiny resistance in the House.

How has this happened—since typical Democratic voters overwhelmingly oppose the imperial madness of the Bush Administration, preferring the humaneness Americans associate with Franklin Delano Roosevelt and John F. Kennedy? The answer is similar to that of the religious question: How have Christians and Jews come to be represented, as far as the public sees, by right-wingers and Armageddonists?

The Democratic Party has been hijacked by the same fascist faction driving the Bush Administration mad. The identical Straussian neo-conservative clique embodied in the Pentagon and Cheney's office, now dominates the Democratic Party top-down. They operate largely through the tiny Democratic Leadership Council (DLC) of Joe Lieberman and Al Gore, and they control the party apparatus through gangsters and gangsterism.

Although some call it the rightist or corporate "wing," the DLC has never been an actual faction of the Democrats. It deliberately has no rank-and-file members. Since 1985 it has increasingly intruded into and disrupted the party, passing along money from outright gangsters, Wall Street criminals, and Republicans to party officials, officeholders, and candidates, aiming to silence and break the Democrats.

High-ranking Democratic Party officials have told associates of Lyndon LaRouche that the DLC was launched in order to stop the takeover of the party by LaRouche, as well as others who were working to bring the party back to its Franklin Roosevelt orientation.

Bury FDR, Bring in the Bull Moose

Roosevelt himself, speaking to labor, the poor, Depression-wrecked farmers, the forgotten man, in his 1933 Inaugural Address, blasted "the rulers of the exchange of mankind's goods.... Practices of the unscrupulous money changers stand indicted in the court of public opinion.... Stripped of the lure of profit by which to induce our people to follow their false leadership.... [T]he money changers have fled from their high seats in the temple of our civilization.... Our greatest task is to put people to work.... [T]here must be a strict supervision of all banking and credits and investments; there must be an end to speculation with other people's money."

The DLC, sponsored by the criminal element Roosevelt denounced, has boldly announced their intention to bury Roosevelt's Democratic Party. In the September 1998 issue of its magazine, Blueprint, DLC strategists William Galston and Elaine Kamarck propounded certain supposed "Realities That Will Shape 21st Century Politics," whose main premise is that "the New Deal era has ended."

They declare that America has a "declining working class"—and that is good for politics. They celebrate the collapse of labor unions in the hyper-speculative New Economy, and applaud "the decline of organized labor as a force within the Democratic Party." The "Hollowing Out of the Middle Class" is "mostly for the better"; the "widening gap between the wealthy and the poor" is a good development!

Shamelessly, they claim: "The ... middle class is shrinking ... not because poverty is on the march, but because millions of Americans are surging into the ranks of the upper middle class and wealthy."

They cheer that the New Deal-generation voters are dying off, leaving instead a supposedly "better-educated," "wired" generation of Baby Boomers and their children, who have never known successful government.

The DLC says the widening gap between the rich and poor must not be seen "as grounds for returning to a New Deal-style politics," nor be allowed to induce the party "to mobilize lower-income groups for a new round of interventionist, centralized government that protects Americans against all forms of economic insecurity." The Democrats must not be allowed to think they "can construct majorities based on a swelling pool of poor and near-poor Americans waiting to be mobilized by an old-fashioned politics..."—since the average American is doing so much better in recent years!

Note here the background of the two authors of this piece. William Galston, senior advisor to the DLC, is a leading American follower of fascist Leo Strauss, and a specialist in Strauss' attack on Plato's doctrine of truth. Elaine Kamarck is a long-time enforcer of Wall Street rule in the Democratic Party and the wife of an investment banker; she will be encountered again in this report.

But what is to replace Franklin Roosevelt's party, so as to represent the "newly wealthy"? The DLC projects a third-party scheme to wreck the Democrats, while blackmailing George W. Bush to move to the right, if not to elect the unsellable chicken-hawk Joe Lieberman.

This scenario is a repetition of the 1912 election. Then, Theodore Roosevelt ("TR"), who had earlier been President, ran again on a "Bull Moose Party" ticket, to sink the Republican candidate, President Taft, and elect TR's fellow Anglo-Saxon imperial racist, Democrat Woodrow Wilson. The DLC proposes Lieberman's closest ally, Republican Sen. John McCain, as the new Teddy Roosevelt to go up against President Bush in 2004 on a third-party ticket. The object: maximum mayhem against the Democrats.

It is noteworthy, here, that on his way to the Presidency, Franklin D. Roosevelt explicitly repudiated the thuggish imperialism of his cousin Theodore.

The DLC announced the Bull Moose scheme in the May 2002 Blueprint, where Marshall Wittman wrote that "John McCain [seeks] to recapture the legacy of President Theodore Roosevelt, by advocating government as an agent of 'national greatness.' " Wittman demanded that Bush give up any remaining tendency to protect American jobs, as with steel tariffs, which Bush had imposed earlier that year.

In the same issue, Tod Lindberg praised McCain's "rogue state rollback" policy, commending John Ashcroft's "Freedom Corps" (which includes the blockwatch and mass FBI informants programs) as originally having been a McCain and DLC proposal.

Note again the background of the authors, in this supposedly "Democratic" magazine.

Marshall Wittman is an advisor to John McCain, and works for the right-wing Hudson Institute, as does the recently disgraced Richard Perle. Beyond this, the McCain Bull Moose scheme was explained candidly by author Franklin Foer in the New Republic (March 20, 2000):

"Jewish neo-conservatives have fallen hard for John McCain. It's not just unabashed swooner William Kristol, editor of The Weekly Standard ... [but] ... such leading neo-con lights as David Brooks, the entire Podhoretz family [etc.].... [In this the neo-cons are following] their forefather Leo Strauss, the political theorist.... Kristol and Brooks [are] both Strauss disciples....

"It's easy to think that Kristol and Brooks are projecting their Straussianism onto McCain.... Kristol has worked with McCain advisor Marshall Wittmann, another Jewish neo-con, to cultivate the Arizona maverick. A year ago, Wittmann gave McCain Standard articles on 'National Greatness Conservatism'—the Kristol-Brooks theory that Republicans should return to the domestic activism and foreign interventionism of Theodore Roosevelt. And Wittmann has regularly worked the Standard's rhetoric into McCain's speeches."

The other Blueprint author, Tod Lindberg, is editor of Policy Review, issued by the Hoover Institution. The April-May 2003 issue of Lindberg's own magazine carries an article entitled "Leo Strauss and the Conservatives," showing the reader why he must "appreciate Strauss' greatness." Lindberg put in his February-March 2002 issue, an article entitled "Charmed by Tyranny," on why the great Strauss should not be blamed for being sponsored by the Nazi Carl Schmitt, since Schmitt's "pathological anti-Semitism was ... the identity handed him by fate."

The Great Betrayal—Moynihan and Nixon

Where did such a "Democratic Party" originate?

Facing the true history of this abomination will require cutting through such hypocrisy and deliberate memory-suppression as was seen recently in the eulogies for the racist Daniel Patrick Moynihan, who died March 26, 2003.

Recall that FDR won the Presidency by creating a new majority coalition of labor, farmers, intellectuals, white and black, taking the Democratic Party out of the hands of the London-New York financiers and Southern racists who had dominated it since the days of Andrew Jackson and slavery.

Recall that John F. Kennedy strove to revive FDR's nationalism and anti-colonialism, resisting the Vietnam War scenario. The Kennedy assassination allowed financiers such as Morgan, Rockefeller, Harriman, Rothschild, Paul Volcker (Federal Reserve), Felix Rohatyn (Lazard Frères), and McGeorge Bundy (Ford Foundation) to overturn America's whole mission for industrial progress, and move toward erasing the American Revolution itself.

Recall, finally, that Richard Nixon's election campaign (1967-68) and Presidential term (1969-74) brought in explicit political racism, free trade to destroy workers' jobs, and austerity to crush the poor. The Straussian gangsters, now on center-stage in the current war crisis, originally entered the picture in connection with this Nixon "Southern Strategy." Their main agent, the Benedict Arnold who began burning down the Democratic Party, was Daniel Patrick Moynihan.

Back in the late 1960s, Moynihan was a bitter man. He had been a minor Labor Department official in the Kennedy and Johnson Administrations, but neither the Kennedys nor Johnson liked him or valued his services. Moynihan had issued a notorious 1965 report on the black family, claiming that the ingrained culture of slavery—not the destruction of the industrial economy—caused blacks' unemployment and poverty. He left the government in a storm of criticism from the civil rights movement.

Democrats shunned him. They mocked his British airs, his affectation since attending the London School of Economics.

The only "Democrat" to whom Moynihan was ever close, was banker Averell Harriman, his former boss. This was the same Harriman who had financed the eugenical racial propaganda of the early fascists; the same Harriman who, with his banking partner Prescott Bush (grandfather of the current President), had financed the Nazis' rise to power. When Harriman ran for New York Governor in 1954, he hired Moynihan as speechwriter, and then brought him into the Governor's office as a publicist. Harriman entrusted Moynihan with writing the authorized history of the Harriman gubernatorial term. Harriman would persist as shadow sponsor of the anti-FDR side of Democratic Party politics.

After Moynihan's debacle in the Labor Department, he began writing right-wing articles for Reporter magazine, and became a devoted follower of its editor, the Straussian Irving Kristol. Moynihan later (in "Pacem in Terris IV," Dec. 2, 1975) called Leo Strauss "the foremost political philosopher of his time in America." It is Irving's son William of the Weekly Standard who, as we have seen, has concocted the McCain-Lieberman Bull Moose scheme.

Thus it was that in 1966, Moynihan was hired as director of the Ford Foundation's Joint Center for Urban Studies, at Harvard and MIT. The foundation's boss, McGeorge Bundy, had just reversed Kennedy's decision to get out of Vietnam, immediately after Kennedy was murdered. At the Ford Foundation, Bundy was running racially divisive schemes to pave the way for severe austerity and banker looting against New York and other cities. At Harvard, under Bundy, Moynihan could now be audaciously racist.

Thus employed, Moynihan made history on Sept. 23, 1967 with an explosive, Hitlerian speech to the National Board of Americans for Democratic Action.

He ranted, "American liberals ... have ... presided over the onset both of the war in Vietnam and the violence in American cities.... The Vietnam War was thought up and is being managed by the men John F. Kennedy brought to Washington to conduct American foreign and defense policy." (Ironically, this must mean McGeorge Bundy.)

He warned, "Liberals must see more clearly that their essential interest is in the stability of the social order; and given the present threat to that stability, they must seek out and make much more effective alliances with political conservatives."

He cursed FDR: "Liberals must divest themselves of the notion that the nation—and especially the cities of the nation—can be run from agencies in Washington. Potomac fever became a liberal disease under the New Deal."

He ushered in a new, Imperial America: "But the biggest problem of running the nation from Washington is that the real business of Washington in our age is pretty much to run the world. That thought may not give any of us great pleasure, but my impression is that it is a fact and we had better learn to live with it."

With his sissy diction, he spoke for a new White Politics: "Liberals must somehow overcome the curious condescension that takes the form of defending and explaining away anything, however outrageous, which negroes, individually or collectively, might do."

At that time, Richard Nixon had a law partner named Leonard Garment, a New York lawyer plugged in to right-wing Jewish leaders and gangsters such as Max Fisher. Garment was helping steer Nixon, the former Vice President who had lost the 1960 Presidential race to Kennedy, back to the top by introducing him to New York politicians and moneymen.

Leonard Garment seized on Moynihan's startlingly evil speech, and told Nixon how to use it in his "Southern Strategy" campaign. Nixon quoted the speech and praised Moynihan in his address to the National Association of Manufacturers (Dec. 8, 1967). Moynihan offered his services. He was brought in as Urban Affairs counselor in the Nixon Administration.

Moynihan's notoriety stems largely from his memo to Nixon, urging "benign neglect" as the best racial policy. But he did his real damage as the architect of so-called Welfare Reform, or slave labor—which was later a central issue of the Gore-Lieberman DLC. This was the tactic of forcing welfare recipients, under threat of starvation, to go to work for their sub-minimum-wage welfare checks, while the number of standard-pay industrial jobs was decreasing, thus sabotaging the general wage level.

Congressional Democrats defeated the welfare slave-labor bill Moynihan crafted. But another law, authorizing creation of health maintenance organizations, was pushed through under Nixon by Moynihan and his allies. The HMO Act imposed Nazi medical standards, closed hospitals, and greatly increased suffering and death among the lower-income Americans. Again, this "privatization" is a hallmark of the DLC neo-conservatives who have since then strangled the Democratic Party.

Timeline: The Battle for the Democratic Party

In 1974-75, Moynihan was Ambassador to the United Nations, with his Republican host Leonard Garment at the UN as an aide. Garment's gangster friend Max Fisher got Garment this UN post, and Garment told Moynihan to accept the ambassadorship. Garment and Norman Podhoretz taught Moynihan the doctrine of right-wing Zionism, using as a guide the British Arab Bureau's Bernard Lewis, who claimed that the Arab view of the matter was merely a product of Soviet propaganda.

Garment and his neo-con friends now convinced Moynihan to run for the U.S. Senate. The clique that formed around Moynihan's 1976 campaign and subsequent Senate career, later emerged in the core of the fascist war faction that sabotaged the Democratic Party.

Leonard Garment and his law partner Lewis "Scooter" Libby became chief attorneys for Russian gangster godfather Marc Rich. They and Michael Steinhardt, the DLC's main financier and Rich's investment partner, conned outgoing President Bill Clinton into pardoning Marc Rich, by then a fugitive from U.S. justice. Recently Clinton said he regretted the pardon, citing Libby's role as chief of staff for Dick Cheney.

The first employee of the 1976 Moynihan election campaign was Lynn Forester, who was to be the central courtesan-operative in the DLC's Bull Moose scheme (see below).

As Senator, Moynihan brought onto his staff:

Elliott Abrams: Norman Podhoretz's son-in-law, later an Iran-Contra criminal, currently chief of Middle East affairs for the Cheney/Rumsfeld-dominated National Security Council. In 1980, Abrams proposed that Ronald Reagan take Moynihan as his Vice Presidential running mate.

Abram Shulsky: Straussian, later head of Rumsfeld/Feith/Wolfowitz intelligence unit that "cooked" the Iraq intelligence.

Gary Schmitt: Later executive director of the Project for the New American Century (PNAC), which issued the September 2000 document outlining the world-conquest and regional Mideast strategy of the current war cabal.

By 1980, the Jimmy Carter-appointed Federal Reserve Chairman Paul Volcker was demolishing the industrial economy. At the August 1980 Democratic national convention, the Democratic Party forces associated with Lyndon LaRouche and with Sen. Ted Kennedy (Mass.) pressed for an open convention, for deliberation on an economic recovery program, and on the choice of a new candidate instead of a second term for Carter. But thug operations run by Harriman political fixer Robert S. Strauss, and led on the floor by banker operative Elaine Kamarck, prohibited discussion and gooned the opposition.

As all had expected, the renominated Carter was defeated by Reagan. After the election, Senator Moynihan told a press conference that he would lead a fight to prevent the takeover of the Democratic Party by the "extremist" backers of Ted Kennedy! Moynihan declared that Kennedy is a "cadre" who believes government should be strong while America should be weak.

The LaRouche wing of the party now rapidly advanced in popular support. LaRouche and Democratic House Majority Leader Jim Wright of Texas, both demanded the firing of Fed Chairman Volcker. LaRouche associate Steve Douglas got 20% of the statewide vote, and 35% of the Philadelphia vote, in the Democratic primary for Governor of Pennsylvania on May 18, 1982.

At a mid-term Democratic convention soon thereafter, "Democrats for the '80s," the personal committee of Averell Harriman and his wife Pamela, was given complete control of the meeting by Bob Strauss, banker Felix Rohatyn, and labor faker, AFL-CIO President Lane Kirkland. Harriman's group, nicknamed PAMPAC, got the franchise to directly issue a "fact book" for all Democratic candidates; they stressed slashing the Federal budget, squeezing Social Security payments to seniors, saving health-care costs by forcing HMOs on the population, and demolishing U.S. industry to make way for an "information economy."

Meanwhile, in July 1982, Senator Moynihan began his assault on LaRouche. Moynihan lied that Mel Klenetsky, a Jewish associate of LaRouche who was challenging Moynihan in the primary election for Senate in New York, was "anti-Semitic." Klenetsky's campaign focussed on Moynihan's support for eugenical "race science" theories.

In May and June 1983, anti-LaRouche strategy meetings were held in the home of New York investment banker John Train. Among those attending were members of the neo-conservative clique within Reagan's National Security Council and Justice Department, rightist billionaire Richard Mellon Scaife (later funder of the "Get Clinton" campaign), Peter Spiro of the New Republic, the Anti-Defamation League (which was then crafting the right-wing religious alliance behind Ariel Sharon in Israel), assorted neo-conservative media men, and a representative of rightist spook Leo Cherne.

This Cherne was Moynihan's close associate and former employer, and a government intelligence advisor. Cherne and Henry Kissinger had jointly activated an FBI harassment onslaught versus LaRouche on false "national security" grounds, following LaRouche's meeting and collaboration with the President of Mexico José López Portillo for an anti-imperial banking program.

In July 1983, Louisiana Congressman Gillis Long and Harriman operative Bob Strauss began a U.S. tour to promote the "National Democratic Caucus," demanding a rightist turn for the Democrats. Their main advisors were Averell Harriman and Felix Rohatyn. Al From, who was soon to found the Democratic Leadership Council, was an aide to Gillis Long, a personal protégé of Strauss, and an operative of Harriman's PAMPAC.

A New Republic article by Peter Spiro (Feb. 6, 1984), urged a political attack on LaRouche, and an Internal Revenue Service prosecution. Spiro warned that LaRouche Democrats were regularly getting 20-30% of the vote, had thousands of candidates, and 100,000 dues-paying members in LaRouche's National Democratic Policy Committee.

An avalanche of anti-LaRouche slurs now poured through the media, originating in the Train salon meetings. In this environment, Al From formed the Democratic Leadership Council on March 1, 1985. The initial group of officeholders receiving DLC funds were predominantly Southern Democrats; they warned Democratic Party officials they must stop being cozy with blacks if the party were to hold the South. The creation and initial funding of the DLC was aided by Heritage Foundation chief Ed Feulner, who worked with DLC founder Al From while personally shaping the Reagan Administration's policies on the model of Tory British Prime Minister Margaret Thatcher.

LaRouche associates won the March 1986 Illinois Democratic primaries for Secretary of State and Lieutenant Governor, with over 50% of the vote.

A Moynihan op-ed in the April 1, 1986 New York Times stated that the "rise of primary elections has weakened the Democratic Party," and demanded party rule changes to enforce discipline. Moynihan ordered Democratic chairman Paul Kirk's participation in an "Operation LaRouche," which Moynihan had set up in New York State, aimed at keeping neo-conservative control of the party.

Pollster J. Michael McKeon, consultant to Moynihan, told EIR on June 24, 1986, "Senator Moynihan is the only person in the Democratic Party who is thinking seriously of how to respond to LaRouche. That's why he brought me to Washington." McKeon, who had predicted the LaRouche Illinois victory, said, "LaRouche has about a 25% core vote throughout the country."

Mob Orders Cement Shoes for the Party

Lyndon LaRouche was falsely imprisoned in 1989, following a several-year attack by neo-conservatives corrupting the media and the justice system.

The Democratic Leadership Council was now in full swing, under the leadership of Michael Steinhardt, a second-generation New York mobster. Steinhardt chaired the DLC board, and chaired the DLC's Progressive Policy Institute think-tank, personally contributing millions in mob-generated funds. Steinhardt's father, in Sing Sing prison as a fence for Meyer Lansky's syndicate, had sent his son cash which Michael turned into a billion through speculation. Steinhardt got other funds for investment from fugitive gangster Marc Rich, who was then looting Russia and Africa.

The DLC, jointly with Averell Harriman's widow Pamela, arranged and financed the Bill Clinton-Al Gore ticket in 1992, knowing that Clinton could get votes that their friend Gore could not. This ticket won election; but Clinton promptly told a gathering at Washington Post owner Katharine Graham's house, that they would not like what he would do as President. The DLC was "stiffed"—Clinton had ambitions to side with the poor, as had FDR. Among other things, under Clinton, Lyndon LaRouche was paroled in 1994 from his false imprisonment as soon as this was possible.

The mobsters raged. The DLC's own, sanitized, authorized history (Reinventing Democrats, by Kenneth S. Baer, 2000) relates the public action of one of Steinhardt's operatives: "Joel Kotkin, a PPI [Progressive Policy Institute] senior fellow, made the first public call for a break with Clinton. In a Wall Street Journal column [Dec. 7, 1994], Kotkin argued that the New Democrats should sever ties with Clinton, back a primary challenge in 1996, and even consider leaving the Democratic Party altogether....

"The largest ... sign [of the DLC's break with Clinton and the Democrats] was its 'Third Way Project'.... [T]here is some evidence that this project was to be the beginning of a third-party movement. According to Michael Steinhardt, chairman of PPI's Board of Trustees until he resigned at the end of 1995, the Third Way Project was to be 'a new approach to separate ourselves from the Democratic Party.' He explained that the DLC began to take on a more bipartisan focus, which appealed to a number of contributors, including Steinhardt himself, who advocated the formation of a third party and went so far as to meet with Bill Bradley to try to persuade him to run for President in 1996."

The DLC gang pressed Clinton to fall in line with the Conservative Revolution. With Dick Morris and other moles, DLC advisor Elaine Kamarck, Gore's aide, was lead enforcer pushing the President to accept the "Welfare Reform" bill, Moynihan's original project, which became a political disaster for Clinton. The DLCers tried to used the situation to force Clinton to resign in the Monica Lewinsky scandal. The LaRouche Democrats successfully counterattacked.

Steinhardt turned over the formal leadership of the DLC in 1995 to his co-factioneer, Connecticut Sen. Joseph Lieberman. But Steinhardt continued to drive forward the DLC's "Third Way" scheming. This Steinhardt project was co-financed by banker Felix Rohatyn, currently a DLC board member, and a longtime controller of the Washington Post.

There is also a trans-Atlantic link, with a fascinating historical echo.

British Prime Minister Tony Blair, a Margaret Thatcher in "New Labour" pants, had a well-known collaboration with Bill Clinton. Now Blair, without missing a beat, collaborates with the war-crazed Bush Administration. Steinhardt's DLC and some powerful friends are behind this smooth political gender switch.

During the last period of the Clinton Administration, a think-tank called the Policy Network was created in England as an official coordinating agency between the Democratic Leadership Council and Tony Blair's advisors. Policy Network's chairman is Blair crony Peter Mandelson, the former Blair Cabinet member (who became known as "Lord Mandy of Rio" following an at-government-expense romp through the homosexual haunts of Rio de Janeiro).

This official channel from the DLC to Blair's "Third Way" inner council was funded entirely by Sir Evelyn de Rothschild, head of Britain's famous N.M. Rothschild bank.

How did Sir Evelyn get into American gangster Mike Steinhardt's DLC scheming, aimed at wrecking the Democratic Party from the inside?

In the 1990s Steinhardt picked up the assistance of Lynn Forester, who had climbed into the big time since her appearance as a Democrat on Moynihan's notorious 1976 campaign staff. She first married New York politician Andy Stein, of the Roy Cohn/Dick Morris sleaze set. She dumped Stein when he lost a mayoral bid. Meanwhile she was building a fortune on mergers and acquisitions, tutored by Virginia billionaire corruptionist John Kluge. She dated the richest and most powerful men, coached by Henry Kissinger. Along the way she befriended Bill and Hillary Clinton.

In 1998 Forester flew on a private plane with Henry Kissinger to a Bilderberg Group meeting in Scotland. There Kissinger introduced her to Sir Evelyn with a lewd joke. Forester brought Rothschild to the United States and connected him to Steinhardt's and Rohatyn's New Economy speculator friends.

With Clinton on his way out, and an economic disaster shaping up, the DLC crowd hurried to scuttle the Democratic Party before an FDR reflex set in. Rothschild, 70, married Forester, 46, in November 2000. The couple were fêted at a party thrown by Senator Moynihan. On their wedding night they slept in the White House. By this time Rothschild had contributed an acknowledged £250,000 to the Policy Network, the Steinhardt-Forester Third Way link to Blair.

Lady Lynn de Rothschild, meanwhile, is a top director of the corporate empire of billionaire Ron Lauder, who has created the Shalem Center, Israel's headquarters for Leo Strauss' philosophy and the funding of Ariel Sharon's politics.

How Did This Elephant Get Into the Parlor?

The Democratic Party has now been dragged all the way back to the slavery days, when it was known as the Party of Treason. The Rothschild family's official American representative, banker August Belmont, whom the Rothschilds had trained as a British spy, was chairman of the U.S. Democratic Party during and after the American Civil War. For several decades, in conjunction with the British Empire, Belmont promoted every aggression and secession scheme of the slaveowner radicals.

Against the background presented by this report, the observer should now be able to discern clearly how the Democrats' enemies took over the party. And what such a disgraced character as Terry McAuliffe represents, as chairman of the Democratic National Committee (DNC), when he works to block criticism of the chicken-hawks' war.

McAuliffe was DNC Finance Chairman in Clinton's first term. He brought in huge contributions from billionaire Carl Lindner, a leading figure in latter-day American gangster circles. Lindner chaired United Fruit/Chiquita Banana, running that empire along with mobster Max Fisher, and was considered the godfather and organizer of the Michael Milken junk bond swindle.

McAuliffe arranged for the use of the White House Lincoln Bedroom for donors, and personally brought Lindner into the White House. Then the Clinton Administration, and Trade Representative Mickey Kantor, went into the "banana wars" (tariffs, etc.) against Europe on behalf of Lindner's company.

In about 1995, Lindner made McAuliffe the chairman of a huge Lindner subsidiary in Florida, American Heritage Homes. For the rest of Clinton's tenure, McAuliffe was taking a chairman's salary and profits from the Lindner organization—by informed accounts, doing nothing for the money but providing access to the White House—until McAuliffe resigned in October 2000, shortly before becoming Democratic chairman.

But this was not nearly enough.

In 1997, McAuliffe was hired as a consultant by billionaire Gary Winnick, creator of telecom giant Global Crossing and a partner with DLC kingpin Michael Steinhardt in Israeli operations.

Working out of Winnick's office in Los Angeles, McAuliffe made political connections that helped spin up the value of Winnick's holdings. As Global Crossing's phony stock inflated towards its inevitable collapse, McAuliffe sold out at just the right moment. He turned an original $100,000 stake into an $18 million profit. Investors not on the inside lost tens of billions in Global Crossing's bankruptcy.

Later Global Crossing hired Richard Perle to convince the Defense Department to allow the sale of the company to Chinese investors. Since Perle was being paid $700,000-plus to lobby the Pentagon, of whose Defense Policy Board he was chairman, this became part of the case leading to his March 27, 2003 forced resignation as chairman of the DPB.

Perle has promised to contribute these particular ill-gotten gains to the widows his war makes.

Perhaps Terry McAuliffe will now likewise resign and cough up his loot.

Look, now, at the gangster cartel that sent Democratic chairman McAufliffe to Israel in February 2002: When the decent elements in Israeli politics were demanding an end to Ariel Sharon's murderous war provocations, when the Labor Party was agonizing over whether they should stop collaborating with Sharon, McAuliffe showed up—"representing the U.S. Democrats"!—to support Sharon in his difficulties.

Look, now, at the gangster cartel that went in the persons of Michael Steinhardt and Marc Rich, to Israel in January 2003; they intrigued inside the Labor Party, to fatally undermine the candidacy of Amram Mitzna that challenged Sharon's war drive.

Gaze, now, at African-American Democrat Donna Brazile, as she strategizes with Bush advisor Karl Rove on how to crush Democratic opposition to the war. As Al Gore's 2000 campaign manager, Brazile arranged to cancel the South Carolina Democratic primary so Democrats would vote for McCain (against Bush in the state GOP primary), and has since been a McCain-Lieberman mole. Basking in the Ashcroft witchhunt atmosphere, Brazile attacks Senator Daschle for insufficient hawkishness; she sneers that the Congressional Black Caucus members seem to "have their reasons" for not applauding the war. She says that for President, she could "support Lieberman. Gephardt or Lieberman."

In sum, this is why the Democratic Party has failed to function in the present crisis.

Barbara Boyd and Mary Jane Freeman contributed to the research for this report.