The agent's name was Lauchlin Currie, and, as M. Stanton Evans writes in his indispensable 2007 book "Blacklisted by History," he ranks "among the most influential Soviet agents ever in the U.S. government, if only by virtue of his portfolio in the White House dealing with affairs of China." Currie, an administrative assistant to FDR, was instrumental in the U.S.-government-wide communist plot to turn China red.
But that's not all he did. Currie pops up in nine KGB cables translated by American cryptographers in what is known as the Venona Project, which became public in 1995. From these and other archival sources we have learned that Currie passed secret documents and shared sensitive political intelligence with Soviet spymasters. Equally as damaging, Currie used his stature as a senior Roosevelt aide to shut down investigations into the activities of other American traitors operating inside government.
While I haven't seen mention of Currie's economic activities in KGB documents, how does stimulus spending sound now on discovering that this bona fide Soviet agent was its leading proponent? In "Roosevelt, the Great Depression and the Economics of Recovery" (University of Virginia Press, 2005), Elliot Rosen, professor emeritus of history at Rutgers, writes: "The initial rationale for public expenditure as a stimulus to the economy was provided by Currie, who won a wide and influential audience in the Roosevelt administration." As assistant research director for the Federal Reserve, his position before moving to the White House, "Currie provided an economic rationale" for deficit spending. "Wartime aside," Rosen writes, "no precedent existed for budget unbalance." Not surprisingly, another Currie project was to push for the "abandonment of the concept of annual budget balance."'
Friday, October 7, 2011
Fwd: In the Red
'"stimulus spending" is what you might call a genuine Bolshevik plot. Why? One of the Kremlin's greatest agents you probably never heard of played a leading role in introducing stimulus spending as a macroeconomic policy for the first time in U.S. history during the Franklin D. Roosevelt years.