Central Banks, Financial Markets, Oligarchs and Family Dynasties
By: Andrew Gavin Marshall
10 March 2014
As part of The People’s Book Project, I have been heavily researching a number of different and interrelated subjects over long periods of time, collecting and cataloguing information, quotes, citations and analysis from a wide range of sources. My specific focus in the last several months have been on studying financial markets, the central banking-monetary system, and the role of financial and corporate family dynasties as institutional power structures within the wider global political economy. The objective of this research is to gather as much relevant information as possible related to these subjects so that I can begin the process of putting the information together, forming a larger, more expansive view of the global economic order while also bringing to light more of the little details, and roles of specific institutions and individuals. Trying to be both specific and expansive is quite challenge, but I’m up to the task.
This research initiative has led me to go through literally hundreds of speeches by central bankers, dozens upon dozens of academic journal articles, and hundreds of articles from the financial press. Through these efforts I am working to construct a more comprehensive institutional analysis of the global economic order than I have yet to come across.
Most people have little sympathy for banks in the wake of the global financial crisis, knowing that they have played a monumental role in causing the crisis, and then receiving extensive bailouts thereafter. My research aims to not simply explain what their role was in both causing and profiting from the crisis, but to explain what their function is within the wider global political economy. This includes examining the role of bond and equity markets, and thus, the global debt system. How do banks organize their interests institutionally and ideologically? What other institutions are involved? What are the role of hedge funds, private banks, consulting firms, exchange-traded funds and investment firms? Who runs these organizations, and who are they connected to?
My ongoing research and writing for Occupy.com’s Global Power Project has contributed a great deal to these efforts, providing institutional analyses of individual banks as well as highly influential groups such as the Institute of International Finance, the Group of Thirty, the International Monetary Conference, and many others. These groups bring together private bankers with central bankers and finance ministers. This adds further questions, seeking answers: What are the role of central banks in money creation, inflation, deflation, interest rates, and in social engineering? What are the ideologies and individuals that drive these organizations?
Another institution of importance that I have been studying is that of the ‘family dynasty’, namely, the prominent financial and corporate dynasties built up around famous names like Rockefeller, Rothschild, Agnelli, Wallenberg, Desmarais, and many others. How have they evolved as dynasties, how do they function, how do they rise and fall? How do family dynasties influence ideology, institutions, individuals and policy? How do they compete and cooperate with each other?
This is not a ‘conspiratorial’ analysis: I do not believe that one or two families “run the world,” nor that elites hold omnipotent power. Power is, ultimately, illusory: it is there because large groups of people believe it to be there, built around mythology and fantasy, but with real-world consequences. Instead, I want to understand and articulate the complexities of the power structures in our world, and notably, those that make up the global economic and financial order. If cash is King, I want to shine light on the royal court of the House of Hubris so that the mythology and fantasies surrounding our global order are better understood, and thus, better undermined.
To undertake this task, however, I need your support. In the past week, the People’s Book Project has raised $495 – bringing the total to $585 – in an effort to raise $2500 by March 25, so that I am able to continue doing research and to write the first volume of The People’s Book Project, focusing primarily upon this subject matter. Please help spread the word, donate, share through social media, promote and help in whatever ways you can. I cannot do this without you and your support, so please consider donating some time or money to help the People’s Book Project continue.
Andrew Gavin Marshall
EXCLUSIVE: Leaked Documents from Secretive Meeting of Global Bankers at the 2013 International Monetary Conference (IMC)
EXCLUSIVE: Leaked Documents from Secretive Meeting of Global Bankers at the 2013 International Monetary Conference (IMC)
By: Andrew Gavin Marshall
6 March 2014
The International Monetary Conference (IMC) is an annual gathering of roughly 200 of the world’s most influential bankers who meet in private with some of the leading finance ministers, regulators and central bankers of the industrial world. The meetings have been ongoing from 1954 until present-day, and have been influential forums for discussion, establishment of consensus, and the articulation and formation of policy related to global economic, financial and monetary issues.
The following document which I obtained is the program for the 2013 IMC meeting which took place in Shanghai, including the list of events and speakers at the annual gathering. Among the participants and speakers at the June 2013 International Monetary Conference (IMC) are some of the world’s most influential private bankers, including: Baudouin Prot (Chairman of BNP Paribas), Douglas Flint (Chairman of HSBC), Axel Weber (Chairman of UBS), Jacob A. Frenkel (Chairman of JPMorgan Chase International), Jamie Dimon (Chairman and CEO of JPMorgan Chase), Jürgen Fitschen (Co-Chairman of Deutsche Bank), John G. Stumpf (Chairman and CEO of Wells Fargo), Francisco Gonzalez (Chairman and CEO of BBVA), and Peter Sands (Chief Executive of Standard Chatered.
Since the IMC took place in Shanghai, it also drew some notable names from the elite within China, including: Hen Zheng (Member of the Political Bureau of the Communist Party of China – CPC – Central Committee and Secretary of the CPC Shanghai Municipal Committee), Jiang Jianqing (Chairman of the Industrial and Commercial Bank of China), Shang Fulin (Chairman of the China Banking Regulatory Commission), Tian Guoli (Chairman of the Bank of China), and Zhou Xiaochuan (Governor of the People’s Bank of China, China’s central bank).
Zhao Xiaochuan was not the only central banker present at the meeting, however. Also present were: Mario Draghi (President of the European Central Bank), Jaime Caruana (General Manager of the Bank for International Settlements), and Janet Yellen, who was then the Vice Chair of the Federal Reserve Board, now the Chair of the Federal Reserve System.
Download the full program here: International Monetary Conference 2013 Program
Research for Revolution
3 March 2014
By: Andrew Gavin Marshall
After a nearly two-month break from work, I have returned full-force to working on The People’s Book Project, a crowd-funded project which has been ongoing (off and on) for the past two-plus years. The Project raises funds to subsidize my research and writing of a series of books examining the ideas, institutions and individuals of power in our world – through historical, political, economic and social realms – as well as the methods and movements of resistance against these power structures. With literally thousands of pages of compiled research thus far, I am pushing forward to finish the current areas of research I have been focused on, as well as moving to complete the first volume of what will doubtlessly be a series of books examining these inter-connected subjects.
So what have I been researching? In the past two weeks, I have been working nearly 12 hours per day collecting research and documentation to contribute to the first volume of the People’s Book Project, focused largely on understanding the global economic, financial and monetary order which is so influential in determining the course of the world and human society, with profound effects upon all the people and life within the world. The aim of my writing, and specifically the People’s Book Project, is to reach a wider and newer audience of people, by attempting to break-down complex institutions and ideologies into more easily-understood concepts; not to ‘dumb-down’ of simplify, but to explain in more simple language. The method of doing this is based primarily upon an understanding – as articulated by George Orwell in his 1946 essay, ‘Politics and the English Language’ – of “political language” as being used to obscure, deflect and manipulate a meaningful understanding of words, concepts, reality and power structures.
In the realm of economics, finance and monetary issues, the uses of “political language” are paramount. Ever read the financial press – Bloomberg, Financial Times, Wall Street Journal, Economist, Barron’s, Forbes, The Banker, etc. – and wonder what the hell these people are talking about? Or why it matters – or should matter – to you? The language is technical, written for “professionals” or “specialists” who received proper educational training in their respective fields, not to be understood by plebian observers, or the “bewildered herd of ignorant and meddlesome outsiders” (as Walter Lippmann referred to the public). The concepts, terms, and institutions within finance, economics and monetary fields are overwhelming in their sheer numbers, let alone meanings, with everything from – collateralized debt obligations, securities markets, bond markets, equity, asset management, money managers, exchange traded funds, price control and stability, macroeconomic adjustments, and the usual alphabet-soups of bungled terminology. It’s a bit much for those who didn’t get degrees in finance or economics.
But then, I didn’t get those degrees either, let alone, any degree. But one thing I do know how to do, and do well, is research. With a sizeable personal library of books – largely research or academic-based – as a start, I have compiled immense amounts of academic journal articles, and have been scouring the financial press for several months, collecting information, quotes and sources from the same publications that are read by those who work within and on top of the world of economics, finance and monetary policy, from the more commonly-known publications like the Wall Street Journal and the Economist, to the most-respected publications like the Financial Times, to the more-specific press, like The Banker, Central Banking, and Barron’s, which pander to audiences firmly resting in the world’s top 1%. On top of this, I have been collecting information from major reports within the industry itself, reviewing articles, forecasts, trends and annual reports and other publications from major banks, international financial institutions, global consulting and advisory firms, prominent lobbies, interest groups, think tanks and foundations. Drawing from a very wide range of sources, most of which are actually supportive – ideologically or institutionally – of the global economic order that rules this world, as well as a host of academic critiques, I have managed to compile – and am still compiling – a truly impressive electronic library of information.
It is from this library that I will be reviewing, organizing and editing into the first (and presumably following) volumes of The People’s Book Project, aiming to help others understand the true nature of the global economic order, and why it is necessary for the survival of the species that we oppose, undermine the legitimacy of – and create an entirely new – global economic system. I hope to analyze this system using language that is approachable and understandable to most people, not just “professionals” and “specialists” (of which I am certainly not one!). This has proven to be a much harder task than I imagined. With each new term, institution or idea described in some obscure economic language, I attempt to discover its true meaning, by holding to the method of translating political language: look at the policies, not the word; look at the actual effects of those policies, not the rhetoric of the “desired effects” they were intended to create; and, if the result of the policy is different from the stated-intent, yet, the policy never changes, one can assume that the words hold a different meaning to those who are speaking/writing them, than to all those who are reading them. For example, ‘austerity’ means something very different to bankers than it does to workers in factories, or single-mothers on state-support. In effect, it is a method of attempting to translate political language into simple language. This is a great challenge in the economic and financial realm, for just when I feel I have reached a comfort level with being able to describe – in simple language – the meaning of a particular term or policy, a host of new words, policies, institutions and ideas emerge.
In truth, I imagine that if most economists were asked to provide a simple-language definition of many terms they are used to throwing about in academic or professional settings, they would struggle to find a way. I am not attempting to preach the baffle-gab nonsense of economic language, nor am I writing for economists. I am writing for people. I am writing for people who do not have the time or access to do the research that I am doing. And I am doing this because I think it is of the utmost importance that people gain a far more realistic understanding of the world we live in. These issues have profound implications for everyone on Earth; and yet, the substance, meaning and effects that these ideas and institutions have are left largely to being discussed within the realm of those who implement them. Analysis and criticism are focused on the ‘policies’, not the system itself. The discussions and debates that take place within the financial and economic world are spoken in foreign languages, and without a popular audience, without a popular understanding.
But people know things aren’t quite right. This book – and the People’s Book Project – aim to arm people with information, and to inspire action for change. But I can’t do this alone. I have to put in a lot of time and energy, and also – unfortunately – a good deal of money as well: subscriptions to the New York Times, Financial Times, Wall Street Journal, Barron’s, The Banker and other publications do not come cheaply every month, but access to these sources – and their historical archives, where possible – is essential to my research. So what I am asking for in help from others, is largely to contribute to an ‘open-source subsidy’ to help me continue my research, and to write the first volume of the People’s Book Project. This means asking for donations. I hate asking money, really, it’s pretty much the least-enjoyable part of everything I spend my time on… but, it is also essential if I am to continue with my work.
I have thus decided to start a new fundraising campaign, aiming to raise $2,500 within the next couple weeks. Most of my previous attempts at fundraising fell far short of my goals, but admittedly, I did not do much follow-up in promoting them. Out of necessity, however, I must do so now. I will begin the count of money raised with including all the donations given to me in the past two weeks, amounting to $90, so that those who have donated in the past couple weeks know that their generous funds have gone to start a new campaign, instead of adding on to a previously-failed fundraising attempt.
If you do not have the financial resources to donate money, please help me out by promoting and sharing my fundraising campaign – and The People’s Book Project – with others: on Facebook, Twitter, Reddit, message boards and other social media platforms. All of this help and support is necessary if I am to continue with this project, and all of our efforts combined truly make this the PEOPLE’s Book Project as opposed to simply ‘my’ book project.
Thank you very much for your time and support,
Andrew Gavin Marshall
New matrimonial property laws a slippery slope to reserve land for sale
By Josh Grummett
Originally posted at APTN on 24 January 2014
Laws that protect Canadian couples in the event of a breakup were extended to First Nation communities last month when the Matrimonial Real Property Act (MRPA) came into effect. But critics say it’s just another move toward dismantling First Nation communities.
In pushing this bill to become law, Aboriginal Affairs Minister Bernard Valcourt said, “It is unacceptable in this day and age that people living on reserve are not afforded the same rights and protections as those living off reserve.”
“It’s all just optics. It makes white people feel good about themselves,” said activist and Aboriginal lawyer, Joan Jack.
And she says it’s a slippery slope from the MRPA to privatizing reserve land.
“It’s not about giving people rights, it’s about money. Because there’s no money coming from the federal government for housing for infrastructure. So therefore they need to turn everything into (private) lands so people can borrow money from the bank, build a house, build a driveway and the government doesn’t have to pay for anything,” Jack said. “It’s about assimilation.”
The Harper government began the push towards the MRPA back in 2007. Taking the issue one step further (PDF) was the free-market advocacy think-tank, the Fraser Institute.
“When the Fraser institute recommends matrimonial property rights what they’re saying — and they do go steps further in advocating private property in general on reserves and other Aboriginal lands — they frame it in the sense that this is about empowering Indigenous communities, helping them come into the modern democratic market-driven society,” says Andrew Gavin Marshall, an activist/writer/researcher based in Montreal who manages The People’s Book Project examining institutions and ideas of power.
It’s no coincidence that the Conservative government and the Fraser Institute are interested in property issues on reserves, he says, nor is he surprised that the Fraser Institute’s spokeswoman on Aboriginal issues, Ravina Bains, used to be the director of policy for Aboriginal Affairs Canada under the Harper government.
Author and Simon Fraser University professor Don Gutstein has spent decades scrutinizing the interconnectivity of government, the media, think-tanks and big business. Like Marshall, he questions the motivations of both the Harper government and Fraser Institute when it comes to their property rights advocacy.
“Their mission is to turn everything into markets, and there are obstacles to markets. One obstacle is Aboriginal governance where there’s collective ownership. That has to be gotten rid of — eliminated. So that’s one of the projects they are involved with is to work gradually to undermine band structure and turning reserves into private land that can then be bought and sold by anybody,” Gutstein says.
That the mainstream media runs with the Fraser Institute’s research and doesn’t question why the think-tank is interested in on-reserve property rights, is his biggest beef.
“This is what bugs me about the media: if you’ve gone to journalism school, one of the first things you learn is to follow the money. And they’ve never done that… they report (the research) as news, as if it’s factual, and gradually those ideas become entrenched in the general public or a significant enough portion of the public that it becomes the new reality.”
If you follow the money, you find some deep pockets fund the Fraser Institute. For example, the Aurea Foundation (PDF) it’s the private foundation of Peter Munk, head of Barrick Gold. A gold mining company, one could argue, might be interested in reserve land being privatized so it can be sold. They’re a proud supporter of the Fraser institute. Adding substance to Gutstein’s assertion that media and big business and right-wing think-tanks are too cozy: well-known national affairs columnist Andrew Coyne sits on the board of the Aurea Foundation and has been criticized for citing research done by think-tanks that Aurea has funded, without disclosing his personal connection to the foundation.
Then there are the Koch brothers, of the controversial U.S.-based Koch Industries which makes billions in petroleum, chemicals, energy, and gas sectors, to name a few. U.S. tax records showthey also donate generously to the Fraser Institute.
But who else foots the bill for operations and research at Canadian think-tanks is largely a mystery because they’re not required by Revenue Canada to disclose who donates the cash, only how much is donated.
“To their great discredit, none of these think-tanks give of a list of their funders,” Gutstein says. “That should be a requirement. Transparency would be beneficial to everyone so we could understand what the agenda was.”
Fraser Institute president Niels Veldhuis told APTN Investigates the lack of disclosure is just good business.
“Our competitors who want to emulate us, if they got a hold of our supporters we’ve spent 38 years building, they’d contact every one of them and try to get money from them,” Veldhuis says.
He scoffs at the suggestion that corporations and rich individuals give to the think tank in exchange for research that benefits their business interests.
“Donors give us money because they like the work we have done in the past. They’re not involved in the questions we ask, they have no involvement in our research and in fact our donors see our research at the same time the media sees our research.”
Maybe the donors don’t, but Marshall points out the board of directors of these free-market advocacy think tanks are stacked with people who come from the same business backgrounds as the donors.
“You’re not going to be against that which your power is based,” Marshall says. “If you want to expand and protect your power you’re not going to be undermining it through everything you own.”
Regardless of whether or not big business is funding research as a way to get a foot in the door of reserves across Canada, or if the federal government is in on this private property push, Joan Jack says the Matrimonial Real Property Act won’t help vulnerable Aboriginal women and children as claimed.
“On paper it makes (the government) look really good but when a woman is getting thrown out of her house — whether she’s a band member or not — she’s getting thrown out of her house and she’s going to need RCMP protection, you’re going to need a lawyer and in most communities those services aren’t available to women, period,” she said.
“It’s insulting and it makes me sad that the Canadian government thinks all they have to do is make things look good on paper. Meanwhile they wonder why we’re still killing ourselves.”
Under the MRPA, First Nations can devise their own laws to deal with issues like who gets the house in the event of a breakup, so long as it’s within the guidelines of the MRPA. Federal rules apply as a default.
State of Power 2014: The Transnational Institute
By: Andrew Gavin Marshall
Originally posted at the Transnational Institute, 21 January 2014
In its third annual ‘State of Power’ report, TNI uses vibrant infographics and penetrating essays to expose and analyse the principal power-brokers that have caused financial, economic, social and ecological crises worldwide.
In my contribution to the ‘State of Power’ report (and in cooperation with Occupy.com), “State of Europe: How the European Round Table of Industrialists Came to Wage Class War on Europe,” I examine the role of a major corporate interest group in shaping the policies of the European Union.
From the introduction:
“Founded in 1983, the European Round Table of Industrialists (ERT) quickly became – and today remains – one of the most influential voices of organized corporate interests in Europe. Not quite a lobby, not quite a think tank, the ERT is an action-oriented group made up of roughly 50 CEOs or Chairmen of Europe’s top industrial corporations who collectively push specific ideologies, pressure political elites, and plan objectives and programs designed to shape the European Union and the ‘common market’.
The past thirty years of the ERT’s existence has revealed it one of the most influential organizations in Europe, widely known to the EU’s political, technocratic, and financial elites, holding regular meetings, dinners, and social events with prime ministers and cabinet officials of EU member states, as well as the leadership of the European Commission itself. In the wake of the European debt crisis of the past several years, the ERT has again been at the forefront of shaping the changes within the EU, promoting austerity and structural reforms as the ‘solution’ to the debt crisis.
As through their three-decade history, the Round Table today continues to promote the ideologies and interests of corporate and financial power at the expense of the interests of labour and the population more widely. This paper aims to examine this highly influential group in order to shed some light on an organization very well known to those who make the important decisions within the EU, yet largely in the shadows to those who have to suffer the consequences of those decisions.”
To read the full essay on the ERT and the European Union, click here.
To review and access all of the reports which contributed to the TNI ‘State of Power’ report, click here.
Global Power Project: The Group of Thirty, Financial Crisis Kingpins
By: Andrew Gavin Marshall
25 February 2014
The following article was originally posted on 18 December 2013 at Occupy.com
Following parts one, two and three of the Global Power Project’s Group of Thirty series, this fourth and final instalment focuses on a few of the G30 members who have played outsized roles both in creating and managing various financial crises, providing a window on to the ideas, institutions and individuals who help steer this powerful global group.
The Assassin of Argentina
Prior to 2008, one of the most notable examples of a highly destructive financial crisis took place in Argentina which, heavily in debt, faced a large default and was brutally punished by financial markets and the speculative assault of global finance, otherwise known as “capital flight.” Less known in the story of Argentina’s 1998 to 2002 economic catastrophe was the significant role played by just one man: Domingo Cavallo.
A longtime member of the Group of Thirty, Cavallo formerly served both as Governor of the Central Bank and Minister of Economy in Argentina. He has been referred to by Pulitzer Prize-winning economic researcher Daniel Yergin as “one of the most influential figures in recasting the relationship of state and marketplace in Latin America.”
Between 1976 and 1983, Argentina, ruled by a ruthless military dictatorship, was marred by excessive human rights abuses and persecution of intellectuals and dissidents during the so-called “Dirty War” in which as many as 30,000 people were killed or disappeared . The terror was reminiscent of nearby Chile, where a coup that brought dictator Augusto Pinochet to power in 1973, with the help of the CIA, provided a petri-dish experiment in the implementation of neoliberal “reforms.” It was Chile’s dictatorship that set the example, and Argentina’s soon followed.
In a 2002 interview, Domingo Cavallo noted that, “The experience of Chile during the ’80s was very instructive, I think, for most Latin American economies, and many politicians in Latin America, because Chile was successful by opening up and trying to expand their exports and in general their foreign trade and getting more integrated into the world economy… And of course we used, particularly here in Argentina, the experience of Chile to go ahead with our own reforms.”
Asked about the association between economic “reforms” in Chile and the ruthless dictatorship that implemented them, Cavallo explained, “There were discussions on the feasibility of implementing market reforms in a democracy. But in 1990… the first democratic president after Pinochet maintained the reforms and also tried to improve on them [and] it was demonstrated that itwould be possible to implement similar reforms under a democratic regime.”
What specific reforms was Cavallo referring to? Under Argentina’s military dictatorship, Cavallo served for one year as Governor of the Central Bank in 1982, where he was responsible for implementing a state bailout of corporations and banks. After, Cavallo returned to academic life. But all that changed with the election of Carlos Menem in 1989, who served as president until 1999. In 1991, Menem appointed Cavallo as Minister for Economy, a position he held until 1996.
Cavallo led the neoliberal restructuring of Argentina: pegging the Argentine peso to the U.S. dollar, trying to reduce inflation, undertaking massive privatizations while opening up the economy to “free trade,” and deregulating financial markets. The New York Times in 1996 heaped praise on Cavallo for his “constructive” role in leading the economy “back to vitality and international respectability,” despite the fact that his reforms “brought high unemployment and painful reductions in social programs.”
Another NYT article credited Cavallo for the “stability” brought to Argentina through his “economic miracle,” while noting, without irony, that Cavallo’s miracle had “left million of Argentines… without a safety net” and with record-high unemployment, the emergence of urban slums, abandoned street children, over-crowded food banks, homeless shelters in churches, and even some people who were forced to eat cats in desperation. The “miracle” was so great, in fact, that despite all of the so-called stability it facilitated, President Menem ultimately dismissed Cavallo to the jubilation of tens of thousands of protesters in the streets. Though the people were pleased, financial markets expressed their disapproval .
With multiple economic and financial crises erupting around the world and in neighboring nations, Argentina, which pegged its currency to the U.S. dollar, found it could no longer compete. The touted neoliberal reforms were taking a toll as the country plunged into recession. Menem was replaced in 1999 by President Fernando De la Rua, who quickly sought support from the IMF to help repay the country’s debts owed to foreign – largely American – banks.
But Cavallo wasn’t out. In 2001, he was re-appointed as the country’s Minister of Economy just in time to receive emergency powers enabling him handle the country’s ongoing financial crisis that he helped to create . At that point, financial markets felt Argentina could not be trusted to repay its debt and the IMF refused to provide further loans, on the basis that the country had not implemented enough neoliberal reforms to meet its demands. The economy crashed and the “much-hated” Cavallo had to resign, as did the President, who fled by helicopter from the Casa Rosada as Argentines protested en masse .
Even the Federal Reserve Bank of San Francisco noted in 2002 that there was “some truth” to the view that “Argentina’s debt position would have been sustainable if only market uncertainty had not triggered a crisis.” But, it added, had Argentina made the effort asked of it to reduce its debt, it could have avoided “potentially destabilizing shifts in market sentiment.”
The role played by former Federal Reserve Chairman Alan Greenspan in creating the conditions that led to the 2008 global financial meltdown is known to many. What is less known is that Greenspan, too, is a former member of the Group of Thirty. Greenspan did not work alone, of course, in his efforts to deregulate the financial system and spur the growth of the derivatives markets, which laid the groundwork for the worst financial crisis in modern times. Larry Summers, who then served as deputy secretary and later Secretary of Treasury under Bill Clinton, was also very helpful in this regard. Summers, too, is a current member of the Group of Thirty.
Currently serving as President Emeritus and as a professor at Harvard University, Summers was the former director of President Obama’s National Economic Council from 2009 to 2011. Previously, he was President of Harvard (2001 to 2009) and, prior to his positions during the Clinton administration he was Chief Economist at the World Bank (1991 to 1993). Currently, Summers is a member not only of the G30 but of the Council on Foreign Relations, the Trilateral Commission, and he was also a member of the Steering Committee of the Bilderberg Group.
While Chief Economist at the World Bank, Summers signed an infamous 1991 memo in which it was suggested that rich countries should dump their toxic waste and pollutants in the poorest African nations — because by the time the toxins spurred the growth of cancer in the local population, they would already statistically be dead due to already high mortality rates. The memo noted : “I think the economic logic behind dumping a load of toxic waste in the lowest wage country is impeccable and we should face up to that.”
When Summers later went to work for the Clinton administration under Treasury Secretary Robert Rubin, he along with Rubin and Fed Chairman Greenspan formed the “Three Marketeers,” as Time referred to them, dedicated to “inventing a 21st century financial system” where they placed their “faith [in] financial markets.”
In the final two years of the Clinton presidency, Summers served as the Treasury Secretary alongside his deputy and protégé, Timothy Geithner, another member of the G30 who would go on to make a mark on the financial crisis — largely by convincing President Obama to bail out the Wall Street banks that crashed the economy, with zero penalty to them. Under the Obama administration, Summers served for nearly two years as Chair of the National Economic Council and was a highly influential policymaker . In 2009, he had spoken at the highly influential ultra-conservative think tank, the Peterson Institute for International Economics, where he explained the administration’s approach to the economic recovery, noting that , “Our approach sought to go as much as possible with the grain of the market” as opposed to regulating markets.
When Summers left the Obama administration in late 2010, he returned to Wall Street and made a fortune working for the hedge fund D. E. Shaw & Co. and Citigroup. This past summer, he was considered Obama’s favorite pick to replace Ben Bernanke as Fed Chairman, but faced such stiff opposition within the Democratic Party that he withdrew his name, leaving Janet Yellen – the Vice Chair of the Fed and herself a former member of the Group of Thirty – to step in .
What we see, in this analysis of the Group of Thirty, are the connections between those in positions of power to respond to and manage economic and financial crises, and those in positions of power who created such crises. Naturally, as well, the G30′s membership includes numerous bankers who, as fortune had it, shared handsomely in the profits of those crises. Put simply, the G30 can be thought above all as an exclusive club of financial crisis kingpins. And it is a club, no doubt, that will continue to play a significant and not altogether helpful role in global financial management for years to come — or until something is done to stop them.
Andrew Gavin Marshall is a 26-year-old researcher and writer based in Montreal, Canada. He is project manager of The People’s Book Project , chair of the geopolitics division of The Hampton Institute, research director for Occupy.com’s Global Power Project and the World of Resistance (WoR) Report, and hosts a weekly podcast show with BoilingFrogsPost .
A Note to My Readers
By: Andrew Gavin Marshall
17 February 2014
As some of you may have noticed, I have not had any postings in some time, nor have I been responding to messages or emails. I had to take a rather unexpected leave from work due to the death of a close friend. However, out of both mental and financial necessity, I am returning to work.
I would just like to thank those of you who have sent me messages and continued to donate funds to my research and writing. I have a serious back log of missed emails, so if you have sent anything to me awaiting response in the past couple months, please consider contacting me again (email@example.com), and I will get back to you as soon as possible. I will also be updating the amount of donations, and must continue to ask for your generous support.
This is a tough world to live in, though not without its many little wonders. Ultimately, all we have is each other, as inspiration, support, and hope. So let’s continue to work together to make this a better world in whatever way we can. The little things can and do make a big difference.
Thank you for your time and understanding,
Andrew Gavin Marshall