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The Holocaust Shakedown

By Elizabeth Wright

[Reprinted from Issues & Views September 25, 2000]

Norman Finkelstein must be a man of iron to be able to withstand the blows that have been coming his way ever since the publication of his book, The Holocaust Industry, which could as easily be entitled "The Holocaust Racket." He is among the best of the chroniclers and critics of the shakedown concocted by leading Jewish organizations in what has to be one of the most massive examples of extortion ever perpetrated. Swiss banks, insurance companies, entire industries and whole countries are targets in a scheme supposedly devised to compensate Jewish victims and survivors of the Nazis. As might be expected, the victims are turning out to be minor beneficiaries of a game plan where billions of dollars raised in their names are directed instead to leading Jewish organizations, Holocaust "memorials," and immense institutions such as Yad Vashem in Israel.

In addition to the funds already received from foreign governments and companies, American Jewish organizations are also exploring the possibility of extracting funds directly from the U.S. government. In 1998, under Senate Bill S. 1900, the U.S. Holocaust Assets Commission was formed, "with the costs split by the interested agencies of the U.S. Government." This bill stipulates that an authorized commission "shall develop a record of the collection and disposition" of Jewish assets, "if such assets came into possession or control of the Federal Government, including the Board of Governors of the Federal Reserve System and any Federal Reserve bank, at any time after January 30, 1933."

The boldness of this action has not only stirred resentment among long-time advocates for black reparations, who demand financial recompense for slavery from the federal government, but reinvigorates their claim that blacks are the "rightful" beneficiaries of any such compensation.

Along with Finkelstein, other critics of the Holocaust reparations enterprise have emerged. Anyone who has taken a course in the subject or is familiar with its literature knows that Professor Raul Hilberg has written one of the major texts in the field and is considered the dean of Holocaust studies. Earlier this year, Hilberg was quoted by a Brazilian journalist as saying: "There is something radically wrong in this exploitation because it is an issue that should not be used to make money, and I must confess that I found the whole affair with the Swiss banks disturbing. The Jewish-American community is very prosperous and there is no reason for them to ask the Swiss for money. That seems obscene to me."

Finkelstein (both of whose parents survived concentration camps) approves of compensation only for and directly to the actual victims and sufferers of the camps--not for their offspring or the progeny of their offspring, and certainly not for giant bureaucratic self-appointed organizations. When an interviewer suggested to Finkelstein that he himself deserves compensation because he is a "second generation survivor," Finkelstein responded, "I think such a concept is repulsive. That's simply an effort to milk the Holocaust for another generation. If I had ever said that to my mother, she would have given me a good smack in the face. And rightfully so."

Although writer Andrew Ross, in Salon.com, complains about the tone of Finkelstein's book, he concedes that, "On a broader level, Finkelstein is justified in questioning the authenticity of the emotional and other claims staked by Holocaust keepers of the flame. The memory of this singular event has too often been soiled by vulgarity, political calculation, hypocrisy and greed. Former Israeli Foreign Secretary Abba Eban long ago observed: 'There's no business like Shoah [Holocaust] business.'"

Derek Copold, writing for the Houston Review, describes how the United States government is used as a weapon by the Holocaust overlords to get their demands obeyed by other governments and mega-corporations. He says, "The countries of Eastern Europe, all recovering from fifty years of Communist oppression, are now slated for the shakedown. The process will repeat itself. If these countries fail to take suitable action--that is, give in--American boycotts and sanctions are threatened. Nations, who once saw the U.S. as a liberator, now see her as the tool of extortion."

A Wall Street Journal editorial questions the logic of extracting money from companies that used unpaid labor during the war, since so many of these firms have changed ownership several times over the past 55 years. For example, in Germany, Salzgitter's ownership has changed hands at least three times since the war. The Journal editorial states, "It's an open question whether those coughing up the money are really the ones who ought to be paying. Perhaps an argument can be made that the democratic governments of Germany and Austria bear some sort of obligation to atone for the evils carried out by the Nazis in Germany's name. But the argument that companies such as Siemens, Volkswagen and Krupps should be made to pay for using slave labor during the war stands on a weaker foundation."

By making the claim that financial compensation belongs to "the Jewish people," Jewish organizations justify their right to be the administrators of all funds collected. On the website Virtual Jerusalem, Michael J. Jordan writes about this contentious debate: "Who are the rightful heirs to all that was lost in Europe, and who has the right to decide how the money should be spent? Holocaust survivors and their advocates say the stolen property and assets lost did not in fact belong to 'the Jewish people as a whole,' but to European Jewish communities and individuals. Furthermore, they say, it is the survivors, and they alone, who are entitled to decide the spending priorities, not the groups that negotiated on their behalf."

George Brewer, a Holocaust researcher for the Committee for the Open Discussion of the Holocaust (CODOH), makes the point: "There are two ironies here. As Raul Hilberg and Norman Finkelstein have noted, the Jewish people have been very successful in the postwar period, certainly more successful than the peoples of Eastern Europe who were hobbled for decades with communist governments. In this kind of case, the demand for recompense violates not only a simple sense of justice but seems vindictive as well. It conjures the image of a rich man bullying a pauper for money, because the pauper's grandfather stole from the rich man's ancestor."

Christopher Hitchens, in The Nation magazine, decries what he calls the "silent treatment" given in this country, so far, to Norman Finkelstein's book. "In England, in Germany and elsewhere, Finkelstein's arguments and evidence have received serious attention and been subjected to real and fierce debate. But in the United States, where the press and the academy are wedded to a near-uniform combination of Holocaust kitsch and Holocaust dogma, no real argument has been permitted to arise."

Charles Glass, in the New York Press, echoes this claim about American silence: "One surprising aspect of the debate is the assertion in several British newspapers that The Holocaust Industry has caused controversy on both sides of the Atlantic. Alas, not yet. Other than New York Press, Finkelstein’s publishers Verso tell me that the rest of the American press has virtually ignored it. In London, people may be kicking Norman Finkelstein, but they are also kicking his ideas around. What’s going on in New York?"

Following are excerpts from The Holocaust Industry: Reflections on the Exploitation of Jewish Suffering, by Norman Finkelstein:

I do not remember the Nazi Holocaust ever intruding on my childhood. I do not recall a single friend (or parent of a friend) asking a single question about what my mother and father endured. This was not a respectful silence. It was indifference. In this light, one cannot but be sceptical of the outpourings of anguish in later decades, after the Holocaust industry was firmly established.

I sometimes think that American Jewry "discovering" the Nazi Holocaust was worse than its having been forgotten. True, my parents brooded in private; the suffering they endured was not publicly validated. But wasn't that better than the current crass exploitation of Jewish martyrdom? Before the Nazi Holocaust became the Holocaust, only a few scholarly studies (by Raul Hilberg, Viktor Frankl and Ella Lingens-Reiner) were published on the subject. But this small collection of gems is better than the shelves upon shelves of shlock that now line libraries and bookstores.

As the rendering of the Holocaust assumed ever more absurd forms, my mother liked to quote (with intentional irony) Henry Ford: "History is bunk". The tales of "Holocaust survivors"--all concentration camp inmates, all heroes of the resistance--were a special source of wry amusement in my home. My parents often wondered why I would grow so indignant at the falsification and exploitation of the Nazi genocide. The most obvious answer is that it has been used to justify criminal policies of the Israeli state and US support for these policies. There is a personal motive as well. I do care about the memory of my family's persecution. The current campaign of the Holocaust industry to extort money from Europe in the name of "needy Holocaust victims" has shrunk the moral stature of their martyrdom to that of a Monte Carlo casino.

The term "Holocaust survivor" originally designated those who suffered the unique trauma of the Jewish ghettos, concentration camps and slave labour camps, often in sequence. The figure for these Holocaust survivors at war's end is generally put at some 100,000. The number of living survivors cannot be more than a quarter of this figure now. Because enduring the camps became a crown of martyrdom, many Jews who spent the war elsewhere represented themselves as camp survivors. Another strong motive behind this misrepresentation, however, was material. The postwar German government provided compensation to Jews who had been in ghettos or camps. Many Jews fabricated their pasts to meet this eligibility requirement. "If everyone who claims to be a survivor actually is one," my mother used to exclaim, "who did Hitler kill?"

The Holocaust industry forced Switzerland into a settlement because time was allegedly of the essence: "Needy Holocaust survivors are dying every day." Once the Swiss signed away the money, however, the urgency miraculously passed. More than a year after the settlement was reached there was still no distribution plan. By the time the money is finally divvied out, all the "needy Holocaust survivors" will probably be dead. In fact, by last December, less than half of the $200 million "Special Fund for Needy Victims of the Holocaust," established in February 1997, had been distributed to actual victims. After lawyers' fees have been paid, the Swiss monies will then flow into the coffers of "worthy" Jewish organisations.

The Holocaust industry has always been bankrupt. What remains is to openly declare it so. The time is long past to put it out of business. The noblest gesture for those who perished is to preserve their memory, learn from their suffering and let them, finally, rest in peace.

For more reviews and information on how to purchase The Holocaust Industry, visit: http://www.normanfinkelstein.com

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