Hello JWN, in chapter 28 of the JW Revelation Book it interprets the "Beast out of the Earth" or the "Two Horned Beast."
This wild beast has two horns, indicating a partnership of two political powers. And it is described as coming out of the earth, not out of the sea. Thus, it comes out of Satan’s already established earthly system of things. It must be a world power, already existing, that takes on a significant role during the Lord’s day... What can it be? The Anglo-American World Power Revelation: It's Grand Climax at Hand, chapter 28, page 193
If you do research on this term "Anglo American" you will find out that is has no official definition. It's essentially a useless term especially when used in the context of which the Revelation book uses it (as prophecy fulfilment). This is the first piece of the mystery. Why do they attach the Beast out of the Earth to this erroneous title?
Now this is not the only totally erroneous claim made about the Beast out of the Earth. Consider what they have to say next:
What can it be? The Anglo-American World Power—the same as the seventh head of the first wild beast but in a special role! Isolating it in the vision as a separate wild beast helps us to see more clearly how it acts independently on the world stage This figurative two-horned wild beast is made up of two coexisting, independent, but cooperating political powers.
They are saying that the Beast out of the Earth is the same as the seventh head of the previously described Scarlet Colored Beast. However, they have NO basis to make this assertion as the two beasts are clearly distinct creatures and explicitly described separately. This is another mystery, why this specific fabrication? Personally, this wreaks of intellectual misdirection in my opinion. Almost like they have something to hide while describing this specific verse. Continuing...
Its two horns “like a lamb” suggest that it makes itself out to be mild and inoffensive, with an enlightened form of government to which all the world should turn.
Again, this doesn't make sense even from a literary perspective. It doesn't seem to be a misinterpretation, but a purposeful misdirection (a lie). For the Beast out of the Earth to have horns "like a lamb" would symbolize a false assumption of the role OF the Lamb of God. Yet, they are pefectly content with ignoring this obvious relation to the broader context and replacing it with erroneous logic. Continuing on...
But it speaks “as a dragon” in that it uses pressure and threats and even outright violence wherever its version of rulership is not accepted. It has not encouraged submission to God’s Kingdom under the rule of the Lamb of God but, rather, to the interests of Satan, the great dragon. It has promoted nationalistic divisions and hatreds that add up to worshipping the first wild beast.
The Greek word that is translated "speaks" actually refers to preaching itself, or proclaiming truth. The dragon in Revelation is refered to as "the father of the lie" and therefore when something "proclaims like a dragon" we can easily explain this as false preaching. This is all taken from a basic reading of the text and should have been apparent to an organization like the Watchtower with many acedemic resources. Basically, what I am saying is that they should know better. So, why the confusion? They conclude with their analysis of the "two horned beast":
This two-horned wild beast performs great signs, even making fire come down from heaven. (Compare Matthew 7:21-23.) This latter sign reminds us of Elijah, the ancient prophet of God who engaged in a contest with the prophets of Baal. When he successfully called down fire from heaven in the name of Jehovah, it proved beyond doubt that he was a true prophet and that the Baal prophets were false. (1 Kings 18:21-40) Like those Baal prophets, the two-horned wild beast feels that it has adequate credentials as a prophet. (Revelation 13:14, 15; 19:20) Why, it claims to have vanquished the forces of evil in two world wars and was victorious over so-called godless Communism! Many, indeed, view the modern counterpart of the two-horned wild beast as a guardian of liberty and a font of material good things.
Finally, they make a correct scriptual correlation to the prophets of Baal in 1 Kings, but then they make another erroneous statement. According to the Scripture the Beast out of the Earth actually DOES call fire down from heaven, but yet the Watchtower says that the Beast only "feels capable", but is ultimately a failure like the prophets of baal in the Book of Kings. This interpretation simply ignores the text and a very important cross reference to 2 Thessalonians 2 which speaks about the "Man of Lawelessness".
2 Thes 2:9 - The coming of the lawless one will be in accordance with how Satan works. He will use all sorts of displays of power through signs and wonders that serve the lie - NIV
These "displays of power that serve the lie" directly correlates with the Beast out of the Earth, who uses false prophecy and displays of power in order to decieve the nations. Yet, in the Watchtower's analysis this is not to be found. Why?
Finally, lets take a look at the Watchtower's artist conception of the Beast out of the Earth:
Notice that it has a dragon appearance. It has a forked tongue, scales and formidable claws. None of these traits are described in the verses they are all completely extra-biblical. Again, why would they feel the need to add all of these features?
What specific reason would the Watchtower have to hide the true identity of the Beast out of the Earth? Revelation 19 holds the answer:
But the beast was captured, and with it the false prophet who had performed the signs on its behalf. With these signs he had deluded those who had received the mark of the beast and worshiped its image. The two of them were thrown alive into the fiery lake of burning sulfur.
Who is this false prophet being referred to? It's described as distinct from "the beast" which is referring to the seven headed scarlet colored beast who was commanded by the harlot and influenced by the dragon. This text proves that the Watchtower purposefully decieve their population about the identity of the Beast out of the Earth. They wrongly conjoin it with the scarlet colored beast and interpret it's horns to represent a fabricated world power. This is not a simple mistake, but purposeful deception which is lawlessness.
The answer to this mystery is that the Watchtower IS a false prophet and is fully aware of this, in fact in they revel in it (they are an occult organization which means secret). They are artists of deception and they are extremely profecient. I have found fallacies like this all throughout their doctrine and they are truly cunning decievers. If anyone has some alternate explanations I would love to hear them. However I believe the most elegant explanation to this mystery is that the Watchtower identifies with the Beast out of the Earth and the Man of Lawlessness mentioned in Thessalonians. They know that they are lying and always have been. There are countless doctines they could have fabricated, but when they get to this particular instance, their misdirection goes off the charts and becomes silly, even for them.