The first sample “chapter” has been completed, in its rough draft form. Now begins the process of editing. As per usual, the chapter is obscenely long, 137 pages in total. And so the editing process will either trim it down (by roughly 100 pages), or it will simply be published as a series of samples from multiple chapters throughout the book, which is the general intention of the introduction anyhow.
But within the 137 pages a great deal of areas are covered in at least some detail, serving as an introduction to multiple subjects which will be the focus of the first book in this series, including: the influence of corporate and financial dynasties, the concentration of ownership and influence among dynasties, individual oligarchs and institutions within what are broadly called “financial markets”; the nature of power politics and empire, with the central role of states and political authority in the exercise of that power; the realm of economic and financial diplomacy and governance (finance ministers, central bankers, international technocrats); the construction of a system of global governance through economics; the institutions and forums through which globalized power is exercised, from think tanks like Bilderberg and the Trilateral Commission, to industry associations and lobby groups like the Institute of International Finance and the Group of Thirty, and political forums of financial diplomats and heads of state, such as the Group of Five, the G-10, Group of Seven and G-20; the gangster state power politics that lies behind the veneer of China’s totalitarian technocracy; and much more!
The approach and influences to discussing these issues of power politics, Mafiocracy and the Empire of Economics is a mix of a linguistic-rhetorical critique drawing heavily from George Orwell and Noam Chomsky (with a focus on the uses and abuses of ‘political language’ and ‘Mafia principles’, though applying these concepts more to finance and economics than politics and foreign policy), as well as a mix of Machiavelli’s ‘The Prince’, written as a clear and concise examination of power as it exists (as opposed to power in theory). Machiavelli dedicated his book to the first financial dynasty of the modern world, the Medici family, whom he had long advised, among princes, popes and others. His intention was to analyze the realities of power and strategy, to speak plainly and purposefully in an effort to support those institutions and individuals of authority. I am trying to bring a similar approach to discussing power, though with opposite intentions: to expand the understanding and support the development of strategy among the wider population, mixing an anarchistic approach to revolution with a pragmatic understanding of power.
I am hoping that the editing process for this first chapter (or multiple samples) will be completed this week, and published almost immediately thereafter, I shall keep you readers updated on progress.
Thanks again for all the support.
Andrew Gavin Marshall
Power Politics, Mafiocracy and the Empire of Economics
As a brief update, I have raised more than stated goal of $500 to finance the completion of the first chapter of my book on, ‘Power Politics, Mafiocracy and the Empire of Economics’. I would like to thank all those who have generously donated to supporting my research and writing. This really would not be possible without your contributions and support, so thank you!
I am currently well into writing the first draft of the first chapter of the book, which I still have to finish and subsequently edit (a great deal!). The chapter is designed to serve as a rough introduction to the subjects and themes of the book(s) to follow, an examination of the power politics that lie behind the public pronouncements and posturing of politicians, the behind-the-scenes financial and corporate dynasties who wield immense influence and indirect power, the modern-day Machiavellis who serve as conduits and collaborators between dynastic and oligarchic groups and the ruling political and state power structures.
The book is a collection of stories about a system of Empire built largely upon economics and finance, the institutions and individuals who rule in public and private, their games of power politics, balancing cooperation with competition in what can be described as Globalization’s ‘Game of Thrones‘. Henry Kissinger, the glorified errand boy (modern-day Machiavelli) to the global Mafiocracy, told President Ford in 1975 that, “the trick in the world today is to use economic to build a world political structure.”
This book is that story. The first chapter provides a glimpse at the cast of characters, the key locations, influential institutions and events which have come to characterize power in the modern world.
Upon its completion, the first chapter will be made available for all to read online, in order to promote the book and further fundraising, so that readers and supporters (and newcomers) can get a glimpse at the kind of research and writing their support contributes to.
Thank you, once again.
Andrew Gavin Marshall
Global Financial Diplomacy and the Empire of Economics
By: Andrew Gavin Marshall
30 March 2015
The world of Global Financial Governance and Diplomacy is a world of empire, power politics, colonialism, war and destruction. Its brutal functions are veiled behind the dull, technocratic language of economics and finance, obscuring behind rhetoric the realities of ideology, actions and effects. It is an empire built by war, waged not with bombs and bullets but with numbers on screens and other illusions. Through the flow, management and direction of money and debt (representing what we call ‘financial markets’), nations are raised up and pushed down, countries prosper and plunder, people are enriched and impoverished, societies are structured, shaped and dismantled.
At the center of this system are the banks, asset management firms, oligarchs and financial dynasties that together control the network – or cartel – of the Global Financial Mafia. A network of roughly 150 of the world’s largest financial institutions collectively control each other and a significant percentage of the network of the world’s largest 47,000 transnational corporations. This unprecedented global financial power concentrated in a relatively small list of banks, insurance companies and asset management firms is itself controlled by rich and powerful individuals and families: the core constituency of the world of Global Financial Governance.
As with every imperial system, a form of State Power is needed, as only nations have sovereign authority and accepted legitimacy. The global imperial system is multi-faceted and complex, though the most obvious areas of operation are in the ministries and departments of powerful nations concerned with foreign policy, military and defense, intelligence and ‘national security’. The largest military power in human history is the United States. Its foreign policy apparatus spans the globe, with hundreds of military bases in foreign nations, aircraft carriers, destroyers, air fields and fighter jets, entire fleets spread out across the Oceans. Large military occupations and bombing campaigns are waged by America (and its key allies) in the Middle East, Africa and Central Asia. Hundreds of millions live under the brutal authority of dictators and tyrants, propped up with money and weapons from the powerful nations. International Relations is, in truth, a lobotomized label to describe a game of empire and power politics.
It is an imperial system overseen and managed not simply by presidents and prime ministers, but by foreign ministers, Secretaries of State, defense ministers, intelligence and military chiefs. The foreign ministers promote the nation’s interests and policies abroad, working to build alliances with other nations and undermine those who defy the demands of the imperial power. If the diplomats are unable to solve the situation, the military and intelligence chiefs move to the front. Collectively, they strategize and implement policies designed to advance the imperial power interests of their home nation. It is a function and reality of all empires through history that there are official positions of authority dedicated to the planning and implementation of ‘foreign relations’, of protecting and advancing the interests of the empire. At times this calls for cooperation with other empires, at times it calls for competition, and at times it calls for conquering and occupation. It is an historical and present reality of Empire.
But distinct to the modern global imperial system – which is to say, distinct to the ‘democratic-capitalist’ system of nations – is the scope and structure of the financial and economic system of imperialism. It is a complex system, dominated by many – often conflicting and competing – interests, with state power being exercised by financial and economic diplomats: finance ministers, treasury chiefs, central bankers, trade ministers, and the heads of regional and international organizations.
Foreign and Defense Ministers are most concerned with the “stability” of the ‘international system.’ Stability, however, has a particular definition. In the case of empire, stability means that the interests of the imperial power are safe and secure. Occupied populations are passive, “friendly” dictators are secure in their positions, and Western corporations and banks are able to influence and profit off of foreign policies and programs. This is, by definition, a state of “stability.” Nations that do not follow the instructions (or “advice”) on how to govern their nations and behave in the international arena are seen as a threat to the ‘stability’ of the global system. Order, then, must be restored, even if it means through war.
Foreign policy officials are largely drawn from and frequently remain within the foreign policy establishment: influential universities, think tanks, foundations and research organizations that ‘educate’ and employ those who are interested in ‘foreign policy’. With individuals drifting back and forth from these institutions into government agencies, the foreign policy establishment shapes the ideology, language, objectives and policies of powerful nations. But because we live in the ‘post-colonial’ world, where outright declarations and endorsements of empire and imperialism are no longer publicly acceptable (as it was in past centuries), the language and rhetoric of foreign policy must be made inaccessible for most people to understand (for those without a proper ‘education’).
In nations or regions of imperial interest and action (which is to say, the entire world), foreign policy figures talk of destabilization, radicalization, threats to ‘national security’, attacks against democracy and freedom. Behind the ‘democratic’ rhetoric lies the brutal power politics that have guided nation states and empires since their origins: Who shall rule, and in what way, through what means, and to what ends?
As a corollary to the world of political diplomacy and the foreign policy establishment there is the world of financial diplomacy and the financial policy establishment. Finance ministers, central bankers and other technocrats are most worried about the threat to the global financial system, and above all else, declare their desire to see ‘stability’ and ‘growth’ in the global financial and economic system.
If the interests of ‘financial markets’ or the global economic system are not served by certain nations or regions, then the global financial diplomats do their best to integrate these regions into the ‘global system’. Over the decades and centuries, this system has extended its influence across most of the world. This is the system of Global Financial Governance, itself a product of and supported by the financial (and economic) policy establishment: universities, think tanks, foundations, and research organizations that ‘educate’ and employ the members of the economic establishment. Officials pass through these institutions into finance ministries, central banks and international organizations. And just as with the foreign policy establishment, the financial diplomats also integrate with and pass through the revolving doors between academia, think tanks, state institutions, international organizations, as well as to and from the boards of corporations and big banks, with larger paychecks, hefty financial holdings, shares, directorships and cushy consulting jobs, rewarded for their years of service to the financial and corporate world.
Just as in the foreign policy world, the world of financial diplomacy and economic policy must obscure its imperial interests and ambitions behind incomprehensible ‘technocratic’ rhetoric, understood only to those who have received the proper ‘education’ and ‘expertise’ to understand the complex world of economics and finance. They do not speak of empire, exploitation and domination, but of austerity, structural reform, deficit reduction, interest rate adjustment, labour flexibility and ‘market discipline’. They do not desire to control colonies, but rather, to foster the development of ‘market economies’. They speak not of threats to ‘national security’, but the threats of ‘market instability’. Their version of promoting ‘democracy’ and ‘freedom’ is to champion ‘free markets’ and ‘free trade’.
Financial diplomats do not send weapons or armies to tyrants and regions seeking to maintain and extend their influence and domination. Instead, they send money and teams of technocrats to advise and implement programs of ‘fiscal consolidation’ and ‘structural adjustment’ with the desire for stability and ‘growth’. They do not bomb and conquer; they privatize and deregulate. They do not occupy, they ‘consolidate’. They do not colonize, they ‘liberalize’.
Behind the words, terms and technical details, lies a world of empire and domination, power politics and colonization. It is a brutal, unforgiving world; far more advanced, globalized and institutionalized than its foreign policy counterparts. It is more directly connected and representative of the networked ‘core’ of the global financial system: concentrated corporate and financial power. For this reason, financial diplomats maintain regular contact and interaction with leading institutions and individuals who represent this core of financial power: the Global Financial Mafia.
It is this world of global financial diplomacy and governance – the financial policy establishment – and its related institutions and interests which is the chief focus of my upcoming book, and which will be the primary focus of a sample chapter I am currently raising funds to support. With a goal of $500, I have thus far raised $200 to support the writing of a sample chapter in a book on these subjects (and much more!). For an expanded list of topics to be discussed, please see this previous posting here.
The objective is to place the unnecessarily complex world of economic and finance in the context of its real-world role (as opposed to the fantasy world of its rhetoric and ideology): a world of empire, tyranny, colonization, conquering, mass destruction and control. Foreign ministers and politicians, military generals and intelligence chiefs are always concerned with the rumbling and rising masses of people in the world, the potential for revolutions and uprisings against tyrants long-supported by our “democratic” nations, armed to the teeth with aid from our “humanitarian” foreign policies. Finance ministers and central bankers are also concerned with the restless and rising populations around the world, with those who take to the streets, resist austerity, protest, riot, rebel and revolt against neoliberalism and the global financial order which takes so much from so many and gives to those who already have the most.
This is the Empire of Economics, a world ruled by a Mafiocracy, leaving mangled nations and impoverished populations in its wake, with billionaire bankers and private family dynasties dominating global wealth and the power that comes with it. In short, it is a world not unlike those that came before, but it is ours to understand and to take a stand if we hope to change it. If these subjects interest you, please consider making a donation to support my writing, and the completion of a sample chapter within the next month which I will make available for all to read.
Thank you kindly,
Andrew Gavin Marshall
The Global Mafiocracy and the Empire of Economics
By: Andrew Gavin Marshall
26 March 2015
I am aiming to raise $500 in order to complete and publish for all to view and read a sample introduction chapter to my book about the Global Mafiocracy and the Empire of Economics. The chapter would provide a sampling of the subject matter, style and approach to discussing these complex issues in a way that is understandable and approachable to as wide an audience as possible. The sample chapter would be completed relatively soon (in the next week or two), so long as the funding objective is reached so that I can afford to put in the time to complete the draft.
So what is the subject matter and focus of the book?
– Translating the world of Economics and Finance into basic English, dismantling the ‘technical’ language of ‘experts’ into a more direct and honest dialectic
– An introduction to the Global Mafiocracy: the banks, corporations, asset management firms, sovereign wealth funds, insurance companies and holding companies that collectively own each other and the wider network of global corporate and financial institutions, manifesting as a relatively small cartel of roughly 150 large financial institutions that wield unparalleled financial power in the modern world. How did the cartel evolve? What institutions are dominant within it? Who are the individuals and groups that lead these organizations? How is the cartel’s wealth and power accumulated and exercised? What role does the cartel play in the world of global finance, economic and politics?
– Behind the major corporate and financial institutions are individuals and families, smaller units of concentrated power who own the largest shares and steer the operations of the global cartel. These individual oligarchs and family dynasties – from the Rockefellers in the US, to the Wallenbergs in Sweden, Agnellis in Italy, Desmarais’ in Canada, to the House of Saud in Saudi Arabia, Oppenheimer in South Africa, among others – control and.or influence large percentages of wealth within their respective nations and in the world of globalized financial and corporate networks. How did these dynasties and oligarchs emerge? What do they own and control? How is their wealth and power organized and exercised? What are their ideologies, beliefs, objectives?
– Empire and Economics: When people think of Empire, they often imagine the old European colonial powers venturing off to Africa, Latin America and Asia where they would militarily occupy and colonize foreign lands, regions and peoples for their own imperial benefit. While formal colonialism is largely an historical anachronism, unjustifiable and increasingly untenable in the modern world, Empire itself has never vanished. While the military and overtly political components of empire and imperialism remain relevant in the modern world (think: U.S. military, CIA, State Department, NATO, etc.) the most effective and evolved means of imperialism in the world are exercised through the economic and financial spheres. In these realms, empire is more effective because its ideology, objectives, actions and effects are hidden behind vague and obscure language, the “expertise” of economists, finance ministers, central bankers and other technocrats who claim to be separate of politics and only interested in economics. Empire is more evolved in these spheres because it has become the vanguard of the global Mafiocracy and imperial system, leading the political and often military apparatus of empire, far more institutionalized and advanced on a global scale than any parallel in political and military spheres.
– Global Financial Diplomacy and Governance: What are the institutions that manage and shape the imperial economic order? In the world of financial diplomacy and governance, those institutions which wield incredible (and increasingly expanding) power and authority remain largely unknown or misunderstood to the general public. The book will examine some of the origins, evolution and character of many of these institutions, including: the International Monetary Fund (IMF), World Bank, Bank for International Settlements (BIS), Organization for Economic Cooperation and Development (OECD), World Trade Organization (WTO), central banks and finance ministries, among others. What are the specific roles, functions and objectives of these institutions? How do they wield power? In whose interest do they operate? Who leads them?
– State Power: The institutions that make up the world of financial diplomacy and governance rely principally upon state power for legitimacy and political might. Whether it’s a central bank, a finance ministry, the IMF or other agencies, the role of powerful nation states such as the United States and other rich nations is central to the system and structures of the global Empire of Economics. The centrality of state power is made all the more apparent through an examination of the origins and evolution of less formal groupings of nations, such as the Group of Seven (G7), the Group of Five (G5), the Group of Ten (G10) and the Group of Twenty (G20), the principal political forums for the system of global governance and empire. Who attends these forums? What institutions are represented? What are the ideologies and competing interests? What effect do they have? What is the role of the ’emerging market’ nations of China, Russia, Brazil, India, Turkey and South Africa within this system?
– The Global Financial Mafia: What is the relationship and interaction between state power, the various Groups of nations, international institutions, finance ministries and central banks with the global cartel of banks and corporations, and the oligarchs and family dynasties that control the cartel? In what forums do the individuals who lead these various institutions interact, cooperate, communicate, socialize and organize? At various global and national think tanks, foundations, forums, conferences and social events, politicians, finance ministers, central bankers and top technocrats meet, often in secret, with the heads of banks and corporations, patriarchs and matriarchs of powerful family dynasties and other oligarchs. Among such events and forums are: the Bilderberg Group, International Monetary Conference (IMC), World Economic Forum (WEF), the Trilateral Commission, the Institute of International Finance (IIF), and the Group of 30, among others. These forums and events provide political leaders and the heads of influential institutions with a private forum where they are able to have off-the-record, often secretive discussions on important issues of global importance to the populations of their respective nations and the planet as a whole. Collectively, this group, and the institutions which dominate it, compose the Global Mafiocracy: a global political, social and economic system dominated by relatively few nations and institutions that operate largely in the interests of a small, criminal cartel of banks and corporations, a global financial Mafia.
– Top-Down: These institutions, individuals and ideologies will be examined and discussed not as a dry, historical account, but in terms of telling a series of stories. I want to try to present this information and analysis in the same way in which it appeals most to me, a fantastic, interesting, often horrifying and shocking tale of intrigue, empire, power politics, petty tyrants, in-fighting, domination, destruction and empire. I want the people who lead and participate in this system to become as familiar to the reader as they are to me, to see an image and read stories about the personalities and complexities of those who rule and wield power. What emerges is a story, or series of stories, worthy of the the intrigue and interest in historical and fictional accounts of imperial families and ancient empires, of mythical worlds, fantasy tales and science fiction societies. Get a view of our world from the top-down.
– Bottom-Up: In parallel to the institutions, individuals and ideologies that dominate and shape our world from the top-down, there are also processes, people, protests and mass movements or revolutions that shape and re-create and re-imagine the world from the bottom up. While Europe’s finance ministers meet in secret, off the record conversations in distant castles located in Luxembourg, deciding the fate of Europe and its citizens, mass protests and demonstrations and riots take place on the streets of Athens, Madrid, Lisbon, Rome and Frankfurt, in which the populations oppose and reject the decisions being made in far-off places by largely unelected technocrats who do not serve their interests. What role do protests and popular movements have in shaping and changing the modern world? How do the dominant institutions and individuals view and respond to such events and processes? Do they fear the potential of the people? What is that potential, or what could it be? What is the bottom-up story of the Global Mafiocracy and Empire of Economics?
– A Series of Stories: History, its chief actors, institutions and evolution is best understood when told as a story, with characters that readers and observers can relate to, understand, find an interest in, to be intrigued and even horrified. It would seem that the best way to explain the overly and unnecessarily complicated world of economics and finance is to explain it not as one would read in a textbook or industry publication, nor reportage in the financial press, nor through the dry and deceptively dull language and rhetoric of economics, academics, finance ministers, central bankers, technocrats and politicians. No, this is a world best understood through the stories, characters, challenges, triumphs, disasters and wars waged by the personalities and people who have shaped and changed this world. A system of human ‘civilization’ is, after all, ultimately a product of humans, and is, therefore, as deeply flawed, complex, conflicted and intriguing as are most human tales of the rise and fall of kings, queens, emperors, dictators, or the triumphs and tribulations of the ‘common person’, those on the streets, in the schools, bustling around the cities, towns and in the urban slums. Human beings understand human struggles and human stories. Thus, this book is not a history of economics and finance, it is a story of human beings, struggle, suffering, success and complexity. In short, it is a story like any other.
I need your help to write these stories and complete this book, what will be the first in a series. For now, my objective is to write a sample chapter, drawing from the many thousands of pages of research I have done in recent months and years. This chapter would be made available online for all to read, to truly gain a better understanding of the focus, approach and objectives of this book. To do this, I need your help. If this is something you would be interested in reading, please consider donating or sharing and promoting this through social media and other avenues.
My objective is to raise $500 in the short-term. If that goal is reached, the sample chapter will be completed (in rough form) and published online for all to read in April of 2015.
Thank you very much for all the support and encouragement.
Andrew Gavin Marshall
Global Power Project: Bilderberg Group and Europe’s Technocrat Titans
By: Andrew Gavin Marshall
10 February 2015
Originally posted at Occupy.com
This is the tenth installment in a series examining the activities and individuals behind the Bilderberg Group. Read the first, second, third, fourth, fifth, sixth, seventh, eighth and ninth parts in the series.
I previously examined the functions of the Bilderberg meetings; the composition and concentration of financial markets and the Mafiocracy that rules them; the nature of technocracy, and the role of finance ministers, central banks and the IMF in managing the European debt crisis. This installment takes a closer look at the top technocrats of the European Council and the European Commission.
The “Troika” of the European Central Bank (ECB), International Monetary Fund (IMF) and European Commission (EC) was largely tasked with managing the response to the debt crisis, organizing bailouts, imposing austerity and saving the banks at the expense of the populations of Europe. The Troika reported to the Eurogroup of 17 finance ministers who represented all of the countries that used the euro as their single common currency.
The European Union project evolved and expanded over decades since the end of World War II, and always with an elite-driven, technocratic structure. As the E.U. moves through the debt crisis, its solutions and actions invariably delegate more authority to both existing and new technocratic institutions that wield immense power over nation-states within the E.U. Sovereignty is increasingly transferred from the nation and its democratically elected leaders to the supra-national technocratic structure of the E.U., and the top bureaucrats and technicians who run it.
The European Council and the European Commission are the major centers of power within the E.U.’s political structure. The European Central Bank is equally if not more powerful, but it doesn’t answer to any political authority since it’s considered to be “independent” (aka exclusively in the service of private interests). The European Council groups together the heads of state (presidents and prime ministers) of all E.U. nations, comprising the supreme governing authority of the E.U. The Council is presided over by a permanent president. Over the course of the European debt crisis, that president was Herman Van Rompuy.
Herman Van Rompuy
Herman Van Rompuy was a prominent Belgian technocrat and politician. Trained as an economist, Van Rompuy worked for Belgium’s central bank from 1972 to 1975, thereafter going into politics where he rose through the ranks to become a budget minister in the 1990s. When Van Rompuy was asked by Belgian King Albert to form a coalition government in December of 2008, Van Rompuy became Belgium’s Prime Minister, described by Reuters at the time as “a budgetary hardliner.”
As European leaders were attempting to negotiate and horse-trade to fill key appointments in the EU apparatus in late 2009, Van Rompuy was considered a “dark horse” to occupy the first-ever permanent president of the European Council. Van Rompuy was relatively unknown outside Belgium and had only been the country’s Prime Minister for 11 months when he got the top job in the E.U.
Roughly a week before European leaders announced him as their selection, Van Rompuy attended a private dinner with members of the Bilderberg steering committee on Nov. 12, 2009. Van Rompuy was invited to the dinner by then-chairman of the Bilderberg meetings, Etienne Davignon, a former top E.U. technocrat, in order “to promote his candidacy” for the top job. At the dinner, which was attended by top industrialists, financiers and even war criminals like Henry Kissinger, Van Rompuy was able to impress the group with a speech and engage in “off-the-record” talks with the unelected oligarchs. At the dinner meeting, Van Rompuy reportedly raised the issue of E.U. financing, suggesting that a continental E.U. tax could even be envisioned.
Seven days later, Van Rompuy was announced as the final choice for president of the European Council. According to The New York Times, Van Rompuy’s selection was seen as the “result of backroom negotiations among [E.U.] leaders jockeying for future and more important economic portfolios that could be more powerful in the enlarged European Union” – in some ways a similar method as how the Chinese choose who sits in the top political positions of authority within the Communist Party and State.
The Financial Times celebrated the appointment of Van Rompuy to the top spot, noting that “the art of Belgian political leadership consists of bringing consensus to a broad and fractious coalition,” which is “exactly what the president of the European Council will have to do.” As the prime minister of Belgium, the paper wrote, Van Rompuy had “demonstrated an ability to bring a laser-sharp focus to a complicated political process.”
Together with the President of the European Commission, the ECB and the Eurogroup of finance ministers, Van Rompuy indeed played an important role in the management of Europe’s debt crisis. After attending the Bilderberg steering committee meeting in 2009, just prior to getting Europe’s top job, he later attended a Bilderberg meeting in 2011 while sitting as president of the European Council.
José Manuel Barroso
José Manuel Barroso finished his second term as President of the European Commission in late 2014, after serving in that post for the previous ten years. Prior to that, he served as prime minister of Portugal from 2002 to 2004. Barroso has attended numerous Bilderberg meetings: in 1994, 2003, 2005 and 2013. On top of that, Barroso has attended meetings of the Trilateral Commission, including the one that took place in Portugal in 2003 while Barroso was prime minister. He also attended the Commission’s annual meeting in 2007 that took place in Brussels while he was the European Commission president.
Barroso courted controversy in 2003 when he became one of only a few European heads of state to support George W. Bush’s “with us or against us” war on Iraq. His position put him in good standing with the U.K. and Italy, yet he also managed to maintain good ties with France and Germany, making him an effective choice to head the EC. Barroso was at the same time, however, “unpopular at home,” noted the BBC, because he implemented “an austerity program to reduce the country’s budget deficit.” But for European leaders, the fact that Barroso was able to hold together a political coalition of opposing parties “while driving through the unpopular reforms” made him an ideal candidate to function as “a consensus politician.”
The Economist reflected on Barroso’s short time as prime minister, noting the austerity program and commenting that he “has done a good job of running Portugal.” Barroso was chosen for one of the top spots in the E.U., overseeing the vast bureaucracy of the European Commission, through a series of “backroom deals, in which various other juicy EU jobs that are up for grabs are shared around.” Those who backed Barroso were doing so under the presumption that he would “hold his liberal economic line.”
A few months into his first term, in early 2005, the Financial Times reported that Barroso had “laid out pro-business plans to revive Europe’s economy,” which Britain’s E.U. Trade Commissioner Peter Madelson described as “proposing a program for Europe that we would describe as ‘New Labour’ in Britain,” and adding that “we are seeing the best chance in a decade to restore authority to the European Commission.” Apart from not giving business interests everything they wanted, the FT conceded that in many areas, “Barroso’s agenda is unashamedly pro-business,” including “a new drive for lighter regulation.”
Barroso’s program “put pressure on countries to make labour markets more flexible and cut back on welfare spending,” noted The New York Times. As people across Europe expressed fear that Barroso was “about to pursue an excessively liberal economic agenda,” Barroso began attempting to please his critics, speaking to trade unionists and declaring his intention to “fight against poverty,” stating that Europe would “maintain and reform our European social model.” That public relations campaign in turn worried business and financial interests, so the Commission president launched “a concerted campaign to attempt to show he remains firmly committed to pro-business economic reforms.”
A couple of weeks later, Barroso delivered a speech at the Spring meeting of the Institute of International Finance (IIF), whose membership is composed of top executives from hundreds of the world’s largest banks and financial institutions. Barroso began his speech noting that “your association has achieved a lot in the last two decades,” and continued:
“It has acted as an important market place for ideas [and] has provided a clear and influential voice for change in the fields of finance, economics and governance.” The world’s “stable financial order” was, Barroso declared, “in no small part thanks to the contribution of this institute.”
Barroso explained his understanding of the global economy to his esteemed audience, noting that the rapid growth in “emerging markets” was increasing global wealth, but also increasing competition for that wealth with countries like China and India able to better exploit cheap labor while the U.S. with its high-tech boom was leaving Europe behind.
“The status quo is no longer an option for the E.U.,” Barroso continued. The E.U. must change “in order for Europe to fully reap the benefits of ongoing globalization,” and the continent had to “increase the flexibility of markets” and strengthen its “productivity.” Translation: deregulate all markets, dismantle labor rights and protections, reduce living standards so as to create a cheaper labor force capable of competing with Asia, and increase finance for research and development to spur high-tech growth. Among the major “priorities” were making workers “more adaptable and labour markets more flexible.” No doubt, Barroso’s audience of bankers and financiers agreed with him.
It should be noted that the top leadership of the IIF are frequently Bilderberg members and participants, and that other speakers invited to the IIF’s Spring meeting included “senior government officials from Brazil, Chile, China, Slovakia, Spain and the U.K.,” as well as “leading international economists,” the managing director of the IMF, and the former president of Mexico.
In 2007, Barroso publicly commented on the unique nature of the European Union, referring to it as “the first non-imperial empire,” and explaining: “We are a very special construction unique in the history of mankind… Sometimes I like to compare the E.U. as a creation to the organization of empire. We have the dimension of empire.”
Barroso became a globally influential official in the spring of 2009, as the world grappled with the repercussions of the financial crisis and the heads of central banks, finance ministries, international organizations and leaders of the Group of 20 met to reshape the global financial and economic order. The focus at the 2009 meeting was to design “the future of financial regulation.” The Telegraph noted at the meeting that “Barroso and his team have had a quiet but immensely influential role in the whole process,” as many of the words and phrases adopted in the G20’s final communiqué were drafted in Barroso’s Commission office, which had drafted an earlier report on the subject. Barroso declared that “we need open, competitive, market economies… with effective regulation and supervision.” To accomplish this, “strong international institutions” (like his) were needed as well as “corporate governance,” a global reflection of today’s “economic culture of Europe.”
The next and final installment in the series examines Barroso’s continued role, and the role of the European Commission, from 2009 onwards.
Global Power Project: Bilderberg Group and the International Monetary Fund
By: Andrew Gavin Marshall
3 February 2015
Originally posted at Occupy.com
This is the ninth installment in a series examining the activities and individuals behind the Bilderberg Group. Read the first, second, third, fourth, fifth, sixth, seventh and eighth parts in the series.
In previous installments, this series has examined the historical role played by Bilderberg meetings in influencing major institutions and policies across North America and Western Europe over the past half century; the role of the meetings in supporting the rise of corporate and financial-friendly politicians to high office; the representation of interests from among the global financial elite, and the promotion of technocracy (particularly in Europe) and the representation of key technocratic institutions and individuals from Europe’s finance ministries and central banks, who’ve played important roles in the management of Europe’s financial and debt crises between 2008 and 2014.
This installment continues with an examination of Bilderberg’s role in facilitating the advancement of transnational technocracy in the EU, bringing in some of the top technocrats from leading European and international organizations to meet in secret with finance ministers, central bankers, politicians, corporate executives, bankers and financiers. The role of finance ministers and central banks has been the focus of the previous two installments in this series. Now we look at the IMF, which, together with the European Central Bank (ECB) and the European Commission (EC), functioned as the “Troika” tasked with managing the international response to the debt crisis, organizing the bailouts and imposing harsh austerity measures and structural reforms upon the nations and people of Europe.
The IMF: It’s Mostly Fiscal
In 1992, the Financial Times published a feature article by James Morgan, the chief economic correspondent of the BBC, in which he explained that with the fall of the Soviet Union, the Group of Seven nations (specifically their finance ministries and central banks) and the International Monetary Fund have come “to rule the world and create a new imperial age.” Morgan wrote that the “new global system” ruled by the G7, the IMF, World Bank and other international organizations “worked through a system of indirect rule that has involved the integration of leaders of developing countries into the network of the new ruling class.”
The IMF is designed to come to the “aid” of countries experiencing financial and monetary crises, to provide loans in return for the nations implementing austerity measures and key structural reforms, and to promote easy access for foreign investors (ie. banks and corporations) to buy up large portions of the local economy, enriching both domestic and foreign elites in the process.
Thus, a nation which gets a loan from the IMF must typically dismantle its social services, fire public sector workers, increase taxes, reduce benefits, cut education and health care, privatize state-owned assets and industries, devalue its currency, and dismantle labor protections and regulations, all of which plunges the population into poverty and allows for major global banks and corporations to seize the levers of the domestic economy and exploit the impoverished population as cheap labor.
The IMF was created near the end of World War II, tasked with managing the global “balance-of-payments” between nations: that is, maintaining the stability of global deficits and surpluses (the borrowing, lending and trading) between countries. However, as the post-War international monetary system collapsed in the early 1970s, the IMF needed to find a new focus. In the late 1970s, the New York Times noted that the “new mandate” of the IMF was “nothing less than rescuing the world monetary system – and with it, the world’s commercial banks.”
As the major Western commercial banks lent out vast sums of money to developing nations during the 1970s, they created immense liabilities (ie. risks) for themselves. As interest rates on debt began to rise, thanks to the actions of the Federal Reserve, heavily-indebted countries could no longer pay the interest on their loans to banks. As a result, they were thrust into financial and debt crises, in need of loans to pay down their debts and finance government spending. A key problem emerged, however, in that major commercial banks (who stopped funding developing nations) could not force them to implement the desired policies. What was needed was a united front of major banks, powerful industrial nations and international organizations.
Enter the IMF: controlled by the finance ministries of the majority of the world’s nations, with the U.S. Treasury holding veto power over all major decisions. The IMF was able to represent a globally united front on behalf of the interests of commercial banks. All funding from governments, international organizations and banks would be cut off to developing nations in crisis unless they implemented the policies and “reforms” demanded by the IMF. Once they signed a loan agreement and agreed to its conditions, the IMF would release funds, and other nations, institutions and banks would get the green light to continue funding as well.
The IMF’s loans, policy prescriptions and reforms that it imposes on other nations have the effect of ultimately bailing out Western banks. Countries are forced to impoverish their populations and open up their economies to foreign exploitation so that they can receive a loan from the IMF, which then allows the indebted nation to simply pay the interest on its debt to Western banks. As a result, the IMF loan adds to the overall national debt (which will have to be repaid down the line), and because the nation is in crisis, all of its new loans come with higher interest rates (since the country is deemed a high risk).
This has the effect of expanding a country’s overall debt and ensuring future financial and debt crises, forcing the country to continue in the death-spiral of seeking more loans (and imposing more austerity and reforms) to pay off the interest on larger debts. As a result, entire nations and regions are plunged into poverty and abusive forms of exploitation, with their political and economic systems largely controlled by international technocrats at the IMF and World Bank, mostly for the benefit of Western commercial banks and transnational corporations.
The IMF has amassed great power over the past few decades, and because its conditions and demands on nations primarily revolve around imposing austerity measures and “balancing budgets,” the IMF has earned the nickname “It’s Mostly Fiscal”. However, due to the effects of the fiscal policies demanded and imposed by the IMF, causing widespread poverty, increasing hunger, infant mortality, disease and inequality, many populations and leaders of indebted nations view the IMF as far more than “fiscal.” In fact, former Egyptian dictator Hosni Mubarak once referred to the IMF as the “International Misery Fund,” a sentiment shared by many protesters in poor nations experiencing the effects of harsh austerity measures.
The IMF and Bilderberg
As one of the world’s most important and influential technocratic institutions, the IMF has a keen interest in the goings-on behind closed doors at annual Bilderberg meetings, just as the group’s participants have a keen interest in the leadership and policies of the IMF. In fact, it is largely an unofficial tradition that the managing director of the IMF is frequently chosen from among Bilderberg participants, or in the very least, attends the meetings following their appointment. In a 2011 article about that year’s Bilderberg meeting, I commented on the race to find a new managing director of the IMF, noting that only Christine Lagarde, the French finance minister, had previously attended a Bilderberg meeting (in 2009), and therefore, she seemed a likely choice.
Lagarde began her career at a corporate law firm in the United States, becoming the first female chair in 1999. In 2004, at the request of the French Prime Minister, Lagarde joined the French government of President Jacques Chirac as a junior trade minister and began to rise through the ranks. When Nicolas Sarkozy became president in 2007, Lagarde took up the post of finance minister, a position that Sarkozy had also previously held. As Foreign Policy magazine explained, both Sarkozy and Lagarde had a similar vision for France: “free markets, less regulation, and globalization.” Together, they imposed various austerity measures and structural reforms in France, and due to Lagarde’s ideological allegiance to the American-brand of “market capitalism,” she was given the nickname, “The American.”
Throughout the financial crisis, and really from 2008 onwards, Lagarde was pivotal in brokering a major bailout deal between the G7 nations, working with her “close personal friend,” Hank Paulson, the U.S. Treasury Secretary (and former CEO of Goldman Sachs). Lagarde became a skilled operator at G7 and G20 meetings, and was a regular figure at World Economic Forum (WEF) meetings. As the [New York Times noted]( in late 2008, Christine Lagarde’s “biggest fans are business leaders and foreign finance officials who have seen her in action.”
In 2008, the Financial Times ranked Lagarde as the 7th best finance minister in Europe. In 2009, she was ranked as number one, with the Financial Times writing that she “has become a star among world financial policy-makers.” That same year, she was invited to the Bilderberg conference. The following year, Lagarde was ranked in third place, having “played an important role in the Eurozone debt crisis, helping overcome Franco-German differences on the bloc’s eventual rescue plans.”
In 2011, Christine Lagarde’s name was put forward as a possible replacement for then-IMF managing director Dominique Strauss-Kahn. The influential economist Kenneth Rogoff said that Lagarde was “enormously impressive, politically astute,” and was treated “like a rock star” at finance meetings all over the world. The New York Times noted that while Nicolas Sarkozy had a challenging relationship with German Chancellor Angela Merkel, Lagarde “nurtured a close personal relationship with Mrs. Merkel.”
Shortly after Lagarde officially began to campaign to become the head of the IMF, the German, British and Italian finance ministries endorsed her candidacy, with the main rival for the top spot being the governor of the central bank of Mexico, Agustin Carstens, who secured the backing of the Latin American nations as well as Canada and Australia. Lagarde then received the golden seal of approval when she was endorsed by the U.S. Treasury Department, the only veto power voter at the IMF. Then-Treasury Secretary Timothy Geithner commented that Lagarde would “provide invaluable leadership for this indispensible institution at a critical time.” While she was campaigning, Lagarde also managed to secure the backing of China, after she met for lunch with the Chinese central bank governor and deputy prime minister.
German Chancellor Merkel commented that “there are very few other women in the stratosphere of global governance.” As the publication Der Spiegel wrote, “[Lagarde] knows ministers and national leaders throughout the world, and she is on a first-name basis with most of them.” German finance minister Wolfgang Schauble was described as “her most important partner” in the EU and “her anchor in Germany.”
Gillian Tett, writing in the Financial Times in December of 2011, noted that “never before has a woman held such a powerful position in global finance,” and much like Chancellor Merkel, Lagarde now “holds real power.” Throughout the course of the European debt crisis, she used that power. Leading one of the three major institutions of the Troika, Lagarde played a central role in the organization of bailouts and enforcement of austerity across the Eurozone. A former top technocratic official in the IMF wrote an op-ed in the Financial Times in 2013 in which he explained that the IMF, alongside the European Commission and the ECB, are together “the troika running the continent’s rescues,” which “means political meddling had been institutionalized.”
The actions of these institutions were so damaging to the economies and societies – and social stability – of many European countries that a formal investigation into the activities of the Troika was held in the European Parliament in late 2013 and early 2014. The final report, produced by Members of the European Parliament (MEPs), concluded that the Troika’s structure and accountability resulted “in a lack of appropriate scrutiny and democratic accountability as a whole.” After all, the growth and empowerment of technocracy coincides with the undermining and decline of democracy.
Christine Lagarde, who has spent her career as a corporate lawyer and finance minister, has steered the IMF on its consistent path of functioning as a transnational technocratic institution concerned primarily with serving the interests of global financial markets. As such, her participation in Bilderberg meetings – in 2009, 2013 and 2014 – brings her into direct contact with her real constituency: the ruling oligarchy.