Andrew Gavin Marshall

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Globalization’s ‘Game of Thrones’, Part 1: Dynastic Power in the Modern World

Globalization’s ‘Game of Thrones’, Part 1: Dynastic Power in the Modern World

By: Andrew Gavin Marshall

7 May 2014

game-of-thrones-chart

Think of any period in human history when empires and imperialism were common features of society, whether from ancient Egypt, Rome, China, to the Ottomans and the rise of the European and Japanese empires. There is an institution that – with few exceptions – was prevalent across most imperial societies: the family dynasty.

In a world dominated by institutions – organized hierarchically and embedded with their own functions and ideologies – the ‘family unit’ is very often the first and most important institution in the development of individuals. For the rich and powerful, the family unit has been the principal institution through which power is accumulated, preserved and propagated, precisely because the interest is multi-generational, requiring long-term planning and strategy.

In powerful states and empires, families have been essential in the process of constructing and governing the major institutions within those societies, as well as in the direct control of the imperial or state structure itself. Whether emperors, kings, queens or sultans, family dynasties have very often exerted direct political control of society. This has been the case for much of human history, at least so long as empires and states have been consistent features. And yet, in the modern era, we imagine our societies to be free of dynastic rule – an archaic feature of a world long past, not consistent with the ideals and functions of democracy, capitalism or modernity. We might imagine this to be true, but we would, in fact, be wrong.

Dynastic power not only remains, but it evolves and adapts, and in the present world of ‘globalization’ – with the growth of the modern nation-states, with the development of state capitalist societies, the banking and financial systems, the monetary-central banking system, industrialization and the multinational corporation – in a world largely dominated by a single state, the United States, acting as the international imperial arbiter on behalf of powerful corporate and financial interests, dynastic power remains a central institution in the global system.

There are, however, notable differences from past era of imperial and royal families. Today, most – but certainly not all – dynasties do not hold formal or direct political authority. The world’s most economically and politically powerful countries are no longer governed by kings and queens or emperors. Instead, modern dynastic power is largely a development that emerged with the decline in the authority of monarchs, and with the rise in parliamentary democracy and capitalism.

As the political and economic spheres began to be opened up, new structures emerged to quickly centralize power within those spheres. As kings and queens handed over the ultimate authority to issue coin to other institutions, merchants and financiers stepped in to increase their influence over the new institutions of a changing world order. Out of these monumental social transformations came new dynasties, embedded within the financial, industrial and corporate oligarchies. Their power was not in direct control of the political apparatus, but in their concentration of control over the financial, economic and industrial spheres. With that power, inevitably, came both the desire and the ability to influence and pressure the political sphere.

Today, it is the industrial, financial and corporate dynasties that have risen to unparalleled positions of authority in the age of globalization. And yet, while some of their names ring familiar to the ears of many, they are frequently thought of as relics of past centuries rather than titans of today, or their names are altogether unfamiliar, as is their positions and influence within our societies. We see power – typically – in terms of those who hold political office: prime ministers and presidents who we elect, as is consistent with our belief that we live in democracies. We see competing factions of political parties vying for office, with us – the people – as the ultimate arbiters of who gets to hold power. The influence of globalization’s dynasties remains unseen, or, misunderstood.

When one hears the concept of relatively few families exerting unparalleled influence over the modern world, the immediate reaction or insinuation is that of a ‘conspiracy theory’. Images of smoke-filled back rooms and mentions of ‘thirteen families’ sitting around a table deciding world events permeate the perceptions of those who question or are confronted with the question of the role of powerful families in the modern world. And yet, the concept of dynastic rule – of families competing, cooperating, and indeed, conspiring with and against each other for control and domination – are prevalent and popular within our culture.

A perfect example of this is with the immense popularity of both the books and the television show, ‘Game of Thrones.’ Set in a mythical world, yet largely based upon the historical rivalries of the ‘War of the Roses’, we witness the characters evolve and events unfold as several families and dynasties battle each other, conspire, compete and cooperate for control of the known world. They are frequently ruthless, cunning and deceitful, often surrounded by ‘yes men’ or the poison-tongued advisers who rose to their positions not by virtue of birth and name, but by their individual capacities for manipulation and cunning. It is a world in perpetual war, engrossing poverty, with the privileged few sending the poor to fight their battles for them, to die and suffer while the rich few propagate and prosper. With no lack of conspiracies, the greatest threat to individual members of dynasties typically comes from their own or comparatively powerful families. Issues of patriarchy, incest, blood-lust, and secession – to the head of the family or the head of the throne – are consistent throughout.

Indeed, the world of ‘Game of Thrones’ – so popular in our culture – is not so far from the reality of our culture, itself. In the world of globalization, families cooperate, compete, and perhaps even conspire against and with each other or themselves. They keep the politics of dynastic power from being understood or contemplated by the masses. We are distracted with sports, entertainment, ‘royal weddings’, a fear of foreigners and terrorism, and are blinded and manipulated by a deeply embedded propaganda system. Our celebrity culture celebrates banality and irrelevance: we tune in to the latest Kim Kar-crash-ian disaster of a human being that plasters the tabloids, while we tune out to the rivalries and repercussions of ‘Globalization’s Game of Thrones’.

While modern dynasties share many characteristics of past ruling families, they have their major distinctions, largely derived from the fact that most of them do not hold formal political or absolute authority. Past dynasties typically held absolute authority over their local regions, states or kingdoms. That type of authority does not exist at the major state, regional or global levels today, with few exceptions, such as the ruling monarchs of the Gulf Arab dictatorships. Yet, while the mechanism of authority is less centralized or formalized in the modern world, the scope and reach of authority – or influence – has expanded exponentially. In short, while in past eras, a single family may have exerted absolute authority over a comparably small region or empire, today, the indirect influence of a dynastic family may reach across the globe, though it remains far from absolute.

Thus, we should not mistake modern dynasties as replications of previous ruling families. They are adaptations to the modern era. With the emergence and prevalence of globalization, multinational corporations, banks, financial markets, philanthropic foundations, think tanks, media conglomerates, educational institutions, public relations and the advertising industries, financial and industrial oligarchs and dynasties have come to be integrated with the nation-state structure. Families that have established modern dynasties typically rose to prominence through their concentration of power and wealth in financial, industrial and corporate spheres. From these positions, political power and influence became a necessity, or else the loss of economic power would be an inevitability.

Such dynasties would frequently establish a ‘family office’ – a private corporate entity – which would handle all of the investments, interests and finances of a dynasty; they would create new universities which would focus on producing knowledge and intellectuals capable of managing changes within and protecting the social order, instead of intellectual talents or pursuits being channeled into areas that challenge the prevailing order. Dynastic families establish ‘philanthropic foundations’ to serve a dual purpose of justifying their wealth and influence (by being perceived as ‘giving back’), but which, in actuality, provide concentrations of wealth managed for the purpose of ‘strategic giving’: to undertake social engineering projects with an ultimate objective of maintaining social control. While appearing to be ‘charitable’ institutions, the major foundations are predominantly interested in the process of long-term social engineering. Notably among such foundations are the Rockefeller Foundation, Carnegie Corporation, Ford Foundation, Open Society Institute, and the Bill & Melinda Gates Foundation, among many others.

Not unrelated – as they are frequently established and funded by foundations – think tanks are created with the intent to bring elite interests together from a wide array of institutions: financial, industrial, corporate, academic/intellectual, media, cultural, foreign policy and political spheres. In think tanks, top officials from these sectors are gathered in a single institution where they work together to plan strategies for economic and foreign policies, for establishing consensus between elites, and to serve as training and recruitment grounds for officials to enter the political and foreign policy establishment, where they are capable of enacting the very policies developed within the think tanks. Notable think tanks with immense influence – specifically in the United States – include the Council on Foreign Relations, the Brookings Institution, the Carnegie Endowment, and the Center for Strategic and International Studies. Larger, international think tanks have been increasingly common during the era of globalization, uniting respective elites from across the powerful western industrial states, instead of simply the elites within each respective state. Notable among these institutions are the Trilateral Commission, the Bilderberg Group and the World Economic Forum.

The prevalence of financial, industrial and corporate dynasties within these institutions has ensured that such families have significant political influence, and have – moreover – played pivotal roles in the construction and evolution of our modern state-capitalist society. Not coincidentally, with the preservation and propagation of modern dynastic power has come the preservation and propagation of modern imperialism, no longer established as a formal colonial system of control. Instead, it is represented as a complex inter-dependency and interaction of institutions and ideologies that manifest as a system of globalized ‘informal imperialism’, with the United States at the center.

Some of the names of these dynasties are better known than others, like Rothschild and Rockefeller, while others are better known within their own countries or barely known at all, like Agnelli (in Italy), Wallenberg (in Sweden) and Desmarais (in Canada). Each family dynasty has their own unique history, with power concentrated in particular companies or family offices. Many, if not most, of these families also have significant connections with each other, acting as joint shareholders in various companies, sitting on the same boards and mingling in the same social circles. They cooperate and they compete with each other for influence in Globalization’s ‘Game of Thrones’.

This series aims to bring to light some of the stories, players and structures of the world’s dominant dynasties. The research included in this series has been undertaken through The People’s Book Project, a crowd-funded initiative to produce a series of books examining the ideas, institutions and individuals of power, as well as the methods and movements of resistance in the modern world.

For this research to continue, the People’s Book Project needs your support. Please consider donating today, and keep an eye out for future installments of the series, ‘Globalization’s Game of Thrones’.

Andrew Gavin Marshall is a 27-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.

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It’s Not Easy Being Young in This World: Help the “Lost Generation” Find its Way

It’s Not Easy Being Young in This World: Help the “Lost Generation” Find its Way

17 March 2014 

By: Andrew Gavin Marshall

It’s not easy being young in this world. And I live in Canada; what does that say? I am 26-years old, in debt, a university dropout – in “the only nation in the world where more than half its residents can proudly hang college degrees up on their walls” – according to a 2012 study by the OECD; a position Canada has held as the “most educated country” in the world since 2000. Yet, I am not among those who are officially deemed ‘educated’ and so my job prospects are glimmer, still.

In 2011, one of Canada’s leading newspapers – the Globe and Mail – reported that 78 million young people were without work around the world, “well above pre-recession levels.” The head of the International Labour Organization warned that the “world economy” was unable “to secure a future for all youth,” which “undermines families, social cohesion and the credibility of policies.” Noting that there was “already revolution in the air in some countries,” unemployment and poverty were “fuel for the fire.” The head of the International Monetary Fund (IMF) had previously warned that youth unemployment in poor nations was “a kind of time bomb.” It is the threat of a “lost generation” of youth that is radically altering the lives of youth – and everyone else – in the world today.

Beyond the Arab Spring uprisings of the Middle East – and the counterrevolutions, coups, civil and imperial wars that have accompanied them, seeking to co-opt, control or crush them – has been the massive unrest spreading across much of Europe, notably in south, central, and eastern Europe. This great unrest has accompanied the economic, financial, and debt crises which have gripped Europe in recent years, with countries imposing ruthless economic policies that impoverish the populations and make them ripe for exploitation by multinational corporations, while keeping them under the harsh boot of militarized police and increasingly authoritarian states, where fascism is once again on the rise.

But in Canada – the world’s most “polite” nation – where more than half of the population have degrees, roughly one in three university graduates (of 25 to 29 years old) “ends up in a low-skilled job,” low paid and part-time, while 60% of these graduates leave school with an average debt of $27,000. This, noted CBC’s Doc Zone, “is a ticking time bomb with serious consequences for everyone.” Young Canadians are “overeducated and underemployed.” We “are entering an economy in the throes of a seismic shift where globalization and technology are transforming the workplace.” An added challenge is that, “for the first time in history youth are facing… competition with their parents’ generation for the small pool of jobs that do exist.”

Canada’s youth have continued to be referred to as a “lost generation” whose future is of “people without jobs and jobs without people.” But this is not merely a Canadian phenomenon. The OECD – the Organisation for Economic Cooperation and Development, an economic think tank representing the world’s 34-or-so richest nations – noted that the threat of a “lost generation” was global. Canada’s youth unemployment rate was at around 15% – for 15-24 year-olds – while in Spain and Greece it had risen above 50%, as was reflected in the increasing social unrest.

Canadian youth are unemployed at a rate double the national jobless rate of 7.2%, the “biggest gap between youth and adult unemployment rates since 1977.” Youth are – due to lack of experience – twice as likely to be laid off as older, more experienced workers. A July 2013 report by one of Canada’s largest banks – CIBC – stated that there were 420,000 youth (15-24) who were “neither employed nor enrolled in school… basically on the sidelines doing nothing.”

The CIBC report more-or-less bluntly stated – that is, blunt for bankers – that: “The current environment of part-time work, temporary jobs, corporate and government restructuring and downsizing is especially tough on young people whose lack of experience and seniority make them much more vulnerable to labour market changes.” In other words, we’re fucked. As the bankers continued to explain, while youth may be enrolling in schools more, staying in schools for longer, degrees are “no longer enough.” Schools must more and more become “training grounds” for corporate employment.  Education will also have to become more expensive, require more debt, and thus, become increasingly privatized and specialized, so as to ensure that fewer people gain access to it. Instead of going to school, the bank suggested, “Do whatever it takes to make you different.”

I thought it would be a cold day in Hell before I followed advice from a banker, but here I am (cold it may be), trying to do what makes me “different.” So what the hell do I do? This is a question that has plagued many of my friends, my family, and indeed, myself.

My general cookie-cutter answer to the question of ‘what it is I do’ sounds something like this: I research and write about ideas, institutions and individuals of power, and methods and movements of resistance. That is, at least, the most succinct way that I know how to explain it. But perhaps it is time to go into a little more detail about what I do, and what I have done thus far.

I started doing research and submitting my writing to various alternative news websites back when I was about 19-years-old, still a university student in Vancouver, studying Political Economy and History. After a year or so of submitting articles, I received a job offer from one of the sites I was submitting to – Global Research – and began working as a Research Associate. I eventually moved to Montreal to be closer to my work, and when I was 22, we published a book on the economic crisis that I co-edited with my boss and in which I contributed three of my own chapters, covering issues related to central banks, think tanks and global governance.

When I was 24, I decided to move on, in part to protect the autonomy of a book I had started working on, and in part due to personality differences (and clashes). While I valued my newfound freedom, I chose a risky path. I was left as a 24-year-old unemployed non-French-speaking Anglophone in the French-speaking province of Quebec. My options were limited. At the time, it seemed that it came down to working at a call center, as a dishwasher, or going on welfare. Instead, I chose to try to chart my own way, to try to find a way to make money and survive doing what I love, and what I had developed skills for: research and writing. It was at this time that I decided to re-imagine my plan for writing my book, and I launched The People’s Book Project in the fall of 2011.

The objective was – as it remains – to crowd-fund my efforts to research and write one – and what later became a series of books undertaking an institutional analysis of power structures, to dissect and expose the ideologies, institutions and individuals that wield enormous power over the world.

From the time that I began The People’s Book Project until today, it has been a whirlwind of challenges, opportunities and growth. There were several people who, from the early days of the Project, contributed financial resources to allow me to continue with my work. It is never easy trying to live off of the kindness of strangers, from donations sent from around the globe. It’s not exactly a stable source of finances, and while one month may seem to be worry-free, the next month I could be broke. My family also stepped in to help me along my way, often subsidizing my efforts to a large degree as well. Thanks to my family, friends and strangers from around the world who have donated, The People’s Book Project is still continuing to this day, with thousands of pages of written research, rough drafts of chapters, and various edits compiled. One book became many, and with the growth of research, the analysis and understanding changes with time.

But circumstances also had a way of changing my focus. In early 2012, I decided to return to university, this time in Montreal. I enrolled and only signed up for one class (History of Haiti), since I wanted to continue devoting most of my time to my work. Within a month or so of returning to school, students from across the province of Quebec went on strike against the government’s plan to dramatically increase tuition costs (and in effect, to double the debt load most students would have to take on).

Suddenly, so much of what I had been writing about was happening right outside my window, on the streets, at my school, in the city where I lived. Hundreds of thousands of students protested, riot cops called into my school, charged by riot police for peacefully assembling, thousands of students were arrested, as police shot protesters with rubber bullets, tear-gas, ran them over with cars, vans and horses, until the government itself declared protests themselves to be illegal. The whole city rose up in response, and it was perhaps the most inspiring thing I have ever been personally witness to.

At that time, I chose to contribute to the student movement in the only way I knew how: to research and write. I was reading the English-language coverage of the student movement from within Quebec and across the rest of the country. What I was reading was about how “spoiled little brats” in Canada’s most “entitled” province were complaining and rioting about our government raising tuition when the rest of Canada had higher tuition (and debt to go with it). What I was reading was a world away from what I was seeing, hearing and experiencing. I decided that I would write about that story.

Very quickly, my writing was being picked up by multiple news sites like never before, as people hungry for more than the usual banality of the Canadian media were taking in new perspectives and seeking new sources of information. My article – Ten Points Everyone Should Know About the Quebec Student Movement– surprised me by going viral (by my standards), especially when it was picked up by CounterPunch and the Media Co-op, and thereafter I was consumed with writing about developments during the strike, as well as giving interviews with radio and even television stations. I was being quoted by a CBC blog, as well as in mainstream newspapers in British Columbia and Manitoba. Everything had been moving so quickly, and after months of working and writing about the student uprising, as it began to wind down, so did I. Ultimately, I had a bit of a ‘crash’ from over-exhaustion, but was soon back to writing.

In terms of the evolution of The People’s Book Project, the Quebec student movement was evidence to me that I could not simply focus on studying and writing about the institutions and ideologies of repression and domination, but that I had to place an equal focus on movements and methods of resistance, understanding that one cannot exist without the other, and that together, they provided a more coherent view of reality, this began to place increased focus on the issue of resistance being included within my research for the Book Project. After all, it is through resistance, rebellion, revolt, and creativity that we are able to find hope in this world and the situation we find ourselves in. It would simply not be enough to provide an examination of the structures that dominate our world without allowing for some hope to be understood and seen in those forces that resist these institutions and circumstances.

From here, my work on the Book Project began to rapidly expand. I turned my focus to Europe, and specifically the European debt crisis, examining the causes and consequences of the debt crisis, as well as the mass unrest, protests and social movements that have emerged as a result. In the span of a few months, I compiled over 350 pages of writing and research on the European debt crisis to contribute to the Book Project, samples of which I have since published online, notably on the debt crisis in Italy, focusing on the issue of austerity, and have also written on the uses of ‘political language’ throughout the debt crisis and all economic crises as a means of obscuring reality and, as Orwell wrote, “making lies sound truthful, murder respectable, and to give a feeling of solidity to pure wind.”

Studying the debt crises in Europe pushed me to try to better understand the uses and abuses of language by power structures and ideologies, and notably, in the fields of economics and finance, where the language appears very technical and specialized, to the point where it seems incapable of being understood by anyone without a degree in those fields.

By this time, I had also decided to drop out of school. I wanted to focus exclusively on my work, and school had seemed to become more a hindrance than a help. So, for the time being, I have given up on any goals regarding degrees and diplomas, instead, I have chosen to let my work speak for itself as opposed to getting any officially-recognized ‘credentials’.

I have, however, learned a great deal from the years I spent in school, namely, on an evolving quality of research. I don’t really look (or like looking) back at things I have previously written and published, especially those from several years ago. I rarely agree with any views I then-held, I find my quality of research seriously lacking, my analysis halfway incoherent, and my own understanding to be rather superficial. I am sure I will view my current work in a similar way several years from now, but I feel that this is a good thing. It is a sign that I am continually evolving in understanding and approach, and that I have still have a great deal to learn. This has been both a strength and a weakness for my Book Project. It has been a strength in the sense that the quality of research and analysis for the book increases over time, but a weakness in the sense that it extends the time that it takes to do the research and writing. The trade-off, I hope, is a worthy one. At least, I feel that it is. For readers, they may decide in due time.

For the past two years I have also been doing almost-weekly podcast episodes for BoilingFrogsPost, founded by Sibel Edmonds. The format has been wonderful, as I have been given an incredible amount of freedom to discuss whatever issues I want for whatever length of time I want, and it has connected me with a host of researchers, writers, activists and others from across the spectrum.

The past year has also been an especially busy one. I began getting offers to do an occasional commissioned article for various websites. This, again, has been both a strength and weakness for the Book Project. While it has helped in terms of being paid work (a rarity for any writer, it seems), as well as allowing my to work on subjects which are related to those of the Book Project, it has often torn me away from working specifically on the book, as most of my time had to be turned into writing articles for other sites, as well as working on several other projects which I took on.

My writing has been increasingly picked up by TruthOut and AlterNet, writing about the major think tanks that have been used to advance corporate and elite interests around the world, massive unrest in Indonesia, the world’s largest ‘free-trade’ agreement between the EU and US, and the development of the modern propaganda system, as well continuing to write about banks and “financial markets” (and their relationship to drug money laundering). Indeed, some of these articles have resulted in me being contacted by a big bank or two inquiring as to my sources for mentioning their name in relation to laundering drug money (which I promptly provided!).

I have also been working on an ongoing project for Occupy.com, called the Global Power Project, which focuses around institutional analysis of individual organizations, examining their history and evolution, as well as compiling the CVs of all the individuals who lead the organizations in order to chart a network of influence wielded by these various groups. My focus for this series has been primarily on studying banks and financial organizations. I have done a series of exposés on JPMorgan Chase, Goldman Sachs, Bank of America, Citigroup, Wells Fargo, and Morgan Stanley. I have also examined various organizations which bring together large groups of bankers with finance ministers and central bankers, such as the Institute of International Finance – the world’s largest banking lobby group – and the Group of Thirty, which resulted in me being contacted by the executive director of the G30 expressing his disappointment that I did not contact him or the group’s members for comment in my article series.

I have also authored an essay in cooperation with Occupy.com and the Transnational Institute for the TNI’s yearly ‘State of Power’ report, where I focused on analyzing the European Round Table of Industrialists – a group of Europe’s top CEOs – in shaping the evolution of the European Union. I have also been published in an academic journal published by the Spanda Foundation, where I contributed an article on environmental degradation and indigenous resistance to the social order. On top of all this, I also recently began another ongoing series for Occupy.com, the World of Resistance [WoR] Report, discussing issues related to the spread of global protests, uprisings, rebellions and revolutions.

One of my previous articles on the Trans-Pacific Partnership was also cited in Project Censored’s “Most Censored Stories” for their 2014 edition. I have also appeared on CBC Radio’s The Current to discuss evolving events in Tunisia’s revolution, as well as having had an op-ed published in a mainstream newspaper in British Columbia, The Province, where I countered an argument put forward by a regular columnist for the newspaper chain, discussing indigenous issues in Canada, a topic I have also discussed on APTN (Aboriginal Peoples Television Network).

I am also the chair of the Geopolitics Division of The Hampton Institute, a new U.S.-based “working class” think tank where I focus on discussing foreign policy and empire. I have written pieces for the Hampton Institute discussing the use of political language in modern imperialism, President Obama’s global drone terror campaign, the “secret wars” that America is waging in over one hundred countries around the world, U.S. support for death squads, the history of U.S. support for Arab dictatorships, notably in Egypt, where the struggle continues today, and I also wrote a large report on the American institutions and “intellectuals” that promote global empire.

So why did I go through a list of the various things I have written and am working on? Well, the answer is simple: I am asking for a ‘public subsidy’ for my writing and research, by you – the public – and so it seemed necessary to let you know a little bit more about where I’m coming from, what I’m doing, and what I’ve done, so that you can determine for yourself if my work is worth continued support.

My aim is to raise enough funds so that I can put aside a good deal of time from my various other time-consuming projects so that I can focus exclusively on the book and get the first edition done as soon as possible. But this requires actual funds, and I am far from having anything close to the amount necessary to dedicate meaningful time to this project. I hate asking for money, but I have come to terms with being an intellectual prostitute for the time being. However, I would rather prostitute my mind for the benefit of the wider public – and most especially the youth of the current “lost generation” to which I belong – as opposed to whoring my mind and efforts out to some various institution. At this point, however, I am essentially unemployable in almost every field, and so my options are rather limited. But I think that through my work, I can help others see that as a species, we do have other options, but that requires us to come to a common understanding, and to engage in common action. We cannot change the world, or steer humanity off the course of seemingly-inevitable extinction, alone. We need each other.

The People’s Book Project is the primary means through which I think I can contribute to this endeavor, to help give the “lost generation” a little bit of guidance. But just like the larger work and efforts that this world will require (and notably, require of the “lost generation”), I cannot do this alone. I require the support of readers and others. So please consider making a contribution to The People’s Book Project, and help the “lost generation” try to find its way.

Thank you,

Andrew Gavin Marshall

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Central Banks, Financial Markets, Oligarchs and Family Dynasties

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.

Thank you,

Andrew Gavin Marshall

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The Debtor’s War: A Modern Greek Tragedy

The Debtor’s War: A Modern Greek Tragedy

By: Andrew Gavin Marshall

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Early on Thursday, 7 November 2013, Greek riot police stormed the offices of Greece’s main public broadcaster, which had been under a five-month occupation by workers who opposed the government’s decision to shutdown the broadcaster, firing thousands and destroying a major cultural institution. The broadcast seems to have come to an end.

The long and painful Greek tragedy continues, where society and culture are gutted, people impoverished, driven into a deep depression, with growing political and social conflicts, the rise of fascism, detention camps filled with immigrants from Africa and the Middle East, trying to escape the dictators we arm, or the wars we support, with suicide rates spiking, health and well-being deteriorate, services and support vanish, and all the people are left to be punished, humiliated, oppressed and destroyed… These are called “solutions” to an economic crisis, on the road to “economic recovery”… think about that for a moment.

Why is this done? Because some of the world’s largest banks demand it. The same banks that created the global financial crisis, and the European debt crisis, and the global food crisis (which drives tens of millions more people into hunger, and makes the banks richer in the process)., and which launder hundreds of billions of dollars in drug money, profit from arms sales, war and terror. Those banks want the people of Greece (and Spain, and Italy, Portugal, and Ireland, and everywhere, always, across the world) to pay the interest they feel they are owed.

Let me put this simply: a computer screen somewhere, at some big bank, says that some country owes that bank a certain amount of money, and thus, the people of that country must suffer and even die, so that the government can afford to pay back the bank. That’s what government’s are for, right? To serve banks… right?

Greece needs to pay the bank, because the bank and all the bank’s friends (what we call “financial markets”) have decided to punish the country of Greece by betting against the ability of the country to repay its debts, to crash its credit rating, making its ability to borrow and spend increasingly expensive and impossible. Now Greece is basically broke. Greece needs money, so it turns to the EU, the European Central Bank, and the IMF for “assistance.”

They demand that Greece – in return for the loan(s) – impoverish its population, cut all social services and health care, education, anything of benefit to the population – destroy it! – because it’s “too costly.” These are called “austerity measures.” Then, ensure that the newly-impoverished population has all their ‘benefits’ withdrawn, which were promised to them through the ‘social contract’ between the population and the government (essentially, a social agreement between people and the state which legitimizes the state’s ability to rule over them). These things must be destroyed. So things like pensions, social security, labour rights and regulations, protections and safety, industries, resources, services and anything that again benefits the population, must be dismantled and sold for cheap to foreign banks and corporations. All must be dismantled to ensure that the newly-impoverished population and country can be effectively and efficiently exploited by cosmopolitical corporations. These are called “structural reforms,” presumably because they ‘reform’ the very structure of society.

Then, with the combination of impoverishment and exploitation, comes the saintly glow of the all-encompassing human desire and civilizational drive – our goal and purpose as a species on this planet, what our societies are organized by and for – the highest stage of humanity: “economic growth.” Who wouldn’t want “growth”? Well, unless we’re talking about something like a wart, rash, infection, inflammation, or a tumour, everyone wants “growth”, right? Even if it’s at the expense of entire societies and populations of actual individual and living human beings, like any single one of us. Just so long as they suffer for “growth,” all will be well and happy.

So what does “growth” mean? It means that the banks and corporations – which worked with government agencies and officials in creating the global economic and financial crises in the first place – now have the ability to reap the benefits of destruction: massive profits, and growing global power. Large corporations have more money than most countries on earth. Their power is protected by the state, their influence unquestioned, their domination of the world’s resources, materials, culture and society is rapidly advancing, and they are – institutionally and ideologically – totalitarian. So what’s not to love, really?

They want it all. Profit and power. Our world is dominated and being re-shaped by a tiny global financial, corporate, political and intellectual elite. And all must suffer so that they can have what anyone in their position would want to have: more, they want it all. And they want you to just shut up and let them take it all. If you have a problem with that, well, that’s what riot police, prisons, and fascism are for.

This is why Greece must suffer. This is why we hear the unholy trinity economic mantra of: “austerity,” “structural reform,” and “economic growth.” The modern Greek Tragedy of ‘The Debtor’s War’ is driven by the tyrannical trio known as the ‘Troika’: the European Commission (of unelected, unaccountable supranational elite technocrats who serve the interests of global corporate and financial power), the European Central Bank (of unelected technocrats and economists who serve the interests of “financial markets” and the big banks), and the IMF (of unelected technocrats and economists who serve global financial and corporate interests). This institutional ‘Troika’ (the EC, ECB, and IMF) demanded the implementation of the ideological ‘Troika’: austerity, structural reform, and economic growth.

Together, institutionally and ideologically, they wreak havoc upon humanity.

Welcome to the most completely INSANE point in human history; the all-or-nothing. Welcome to reality.

Now please, kindly help change it.

Global Power Project: Connecting Josef Ackermann, the Institute of International Finance and the Euro Debt Crisis

Global Power Project: Connecting Josef Ackermann, the Institute of International Finance and the Euro Debt Crisis

By: Andrew Gavin Marshall

Originally posted at Occupy.com

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In Part 1 of a Global Power Project exposé on the Institute of International Finance (IIF), I examined the founding the institute as a response by leading world banks to organize and manage their interests in relation to the 1980s debt crisis. When the European debt crisis hit headlines in 2010, the IIF was again on the scene and playing a major part. At the center was the CEO of Deutsche Bank, Josef Ackermann.

Josef Ackermann served as CEO of Deutsche Bank from 2002 to 2012, and over the same period served as Chairman of the IIF. Ackermann was also, and still remains, a member of the Steering Committee of the Bilderberg Group and continues to serve on the IIF’s Group of Trustees, a board which includes a number of prominent central bankers including Christian Noyer, the Governor of the Bank of France and Chairman of the Bank for International Settlements (BIS); Jamie Caruana, the General Manager of the BIS; and Jean-Claude Trichet, who was the president of the European Central Bank from 2003 to 2011.

During the early stages of the financial crisis, Ackermann served as an “unofficial adviser” to German Chancellor Angela Merkel and her then-Finance Minister Peer Steinbrueck. In December of 2009, Ackermann was speaking at a summit in Berlin attended by Chancellor Merkel and several other German cabinet ministers, corporate CEOs and others, where he explained that while the financial crisis had largely been “abated,” many “time bombs” remained — in particular, Greece, which he referred to as the “problem child” of Europe. Ackermann blamed the debt crisis on people having “lived beyond their means for years, if not decades,” warning that pensions and health care systems would “compound the problem” in the future.

The Financial Times has referred to Ackermann as a “reluctant power broker” who “has the ear of Angela Merkel, Europe’s most powerful politician.” Ackermann not only became one of the most influential bankers in the world, but a major political figure as well. As he himself explained: “Financial markets now are very political – political considerations have to play an important role.” In 2011, Ackermann warned that in terms of Europe’s crisis, “I don’t see a quick economic recovery, so we will have a longer time of somewhat lower growth – certainly three to five years.”

In October of 2011, Ackermann delivered a speech in which he said that Europe had “now entered a period of deleveraging” which “will inevitably entail a long period of austerity as governments, households and firms raise their savings.” At an economic forum in December of 2011, Josef Ackermann stated that Europe had to get its debt under control, “even at the cost of national sovereignty,” suggesting that neither “the pressure of financial markets” nor austerity measures “threaten democracy.” The real threat to democracy, according to Ackermann, was the “excessive debt” of European states.

In 2011, France and Germany agreed to negotiate directly with the “private sector” in the next planned Greek bailout agreement. The lead negotiator for the banks was the Institute of International Finance, which was brought in to discuss the potential for the banks to take a slight loss on their holdings of Greek debt. Ackermann was to be one of the lead negotiators for the IIF (also representing Deutsche Bank,a major private holder of Greek debt).

The Institute of International Finance under Ackermann’s chairmanship in turn became directly involved in major European summits, providing key input and suggestions that led to the Greek bailout. In July of 2011, the IIF warned the Eurozone countries that they would have to conclude a bailout agreement for Greece in order to avoid financial markets “spinning out of control.” The IIF delivered these warnings in a report delivered directly to European finance ministers, stating: “It is essential that euro area member states and the IMF act in the coming days to avoid market developments spinning out of control and risk contagion accelerating.”

The IIF undertook talks with Greek political leaders as well as EU officials, the European Central Bank and the IMF, with the organization noting that its managing director Charles Dallara and an IFF team “had extensive meetings with very senior European government officials over several weeks.” The three main IFF officials involved in discussions and negotiations were Charles Dallara (managing director from 1993-2013), Ackermann and Baudouin Prot, the Chairman of BNP Paribas.

According to one report, Ackermann even attended a meeting of the European Council during the EU summit to discuss the Greek bailout. Dallara was reported to have engaged in a conference call with top EU officials, including the Eurogroup chair Jean-Claude Juncker and the European Commissioner for Economic and Monetary Affairs, Olli Rehn. Dallara also reportedly met with European Council President Herman van Rompuy, then-French President Nicolas Sarkozy and Angela Merkel.

Discussions continued over the following months with little resolution. In an October meeting, EU officials reportedly hit a wall, at which point they summoned Dallara as the representative of the banks to the meeting in order “to break the deadlock.” Dallara met with Sarkozy and Merkel and other leading EU officials. While a general agreement was reached with the banks, negotiations over the technicalities continued into 2012, taking place between the Greek government, the EU, IMF and the IIF.

Ackermann explained that the banks were being “extremely generous” and then warned that failure to agree on a new program would open“a new Pandora’s box” for the debt crisis. Ackermann spoke at the World Economic Forum where he said that any agreement would have to force Greece to adhere to “harsh new austerity measures,” including cuts to wages and pensions, as well as making “the labor market more flexible.”

The final agreement had the banks holding Greek debt to take a 50% “loss” of their holdings of that debt, which would be done through a “bond swap” where they were to exchange their current junk status Greek debt for long-term Greek government bonds (debt) with a higher rating. In other words, the much-touted “write off,” or “loss,” for banks holding Greek debt amounted to a fancy financial method of kicking the can down the road.

After leaving his position as Chairman and CEO of Deutsche Bank as well as Chairman of the IIF, Ackermann spoke at the Atlantic Council, a U.S. think tank where he stated that elections in Greece were “not necessary” and “a big mistake.” What was necessary, he said, was “to make the funding of the banking system more certain,” and claimed it would require between 1 and 2 trillion euros. The European Stability Mechanism’s (ESM) ability to provide banks with $1 trillion was, according to Ackermann, “sufficient,” but he added, “we have to do more” and “we should maintain the pressure on the countries to do the necessary structural reforms and the necessary financial reforms to reduce the debt burden.” However, he noted, “if it comes to the worst,” in terms of a potential collapse of the Eurozone, “everything will be done to bail the Eurozone out.”

When Ackermann was asked why Germany did not simply come out and say that it would guarantee bank debts in the Eurozone, he explained that “it would be very difficult to get parliamentary approval for such behavior or attitude. People would not support it at all.” Further, if Germany did publicly state that it would guarantee bailouts for banks, many countries in the Eurozone would then ask, “Well, why then go on with our austerity programs? Why go on with our reforms? We have what we need.” Thus, Germany was not saying so publicly, based on what Ackermann called “political tactical consideration,” adding: “I think to keep the pressure up until the last minute is probably… not a bad political solution.”

Ackermann has never lacked as a source for controversy. He has been referred to as “a global banker and political power broker” by one financial analyst, and Simon Johnson, former Chief Economist at the IMF, referred to him as “one of the most dangerous bank managers” in the world whose advice not just to Germany and Greece but also to Belgium and Switzerland “shaped talks to bail out German lenders [banks], reduce Greece’s debt, leverage the euro-area’s rescue fund and influence regulation.” Ackermann himself stated, “Financial markets have become highly political over the past years… Politics and finance will become even more intertwined in the future. Accordingly, bankers have to think and act more politically as well.” One financial analyst stated: “He’s the most influential banker in the euro zone.” A German economics professor noted, “Deutsche Bank and its CEO are the target of all the people who feel our social or economic system is unfair or wrong.”

In 2011, Ackermann was targeted by an Italian anarchist group that claimed responsibility for sending a letter bomb to the Deutsche Bank CEO, though it was intercepted by police. When confronted by Occupy protesters during a speech he gave in November of 2011, Ackermann touted his “environmental” credentials, explaining that the UN Secretary General had referred to him as a “visionary.”

When Ackermann left Deutsche Bank and the IIF, he did not leave the world of financial and political power. He continued holding positions as a member of the Steering Committee of the Bilderberg Group; Vice Chairman of the Foundation Board of the World Economic Forum; and as a member of the Group of Trustees of the Principles for the Institute of International Finance. On top of that, he became a board member of Investor AB, Siemens AG, and Royal Dutch Shell, as well as being appointed Chairman of Zurich Insurance Group. Ackermann also sits on the international advisory boards of the China Banking Regulatory Commission, the National Bank of Kuwait, and Akbank, Turkey’s largest bank, as well as sitting on the boards of a number of other corporate and financial institutions.

When Ackermann left his position as CEO of Deutsche Bank and Chairman of the IIF, he was replaced at the IIF by Douglas Flint, the chairman of HSBC Holdings, who also sits on the board of the IIF. Flint is a member of the Mayor of Beijing’s International Business Leaders’ Advisory Council, a member of the Mayor of Shanghai’s International Business Leaders’ Advisory Council, a member of the International Advisory Board of the China Europe International Business School, a former director of BP (from 2005-2011), a participant in Bilderberg meetings (including for the years 2011-2013), a member of the European Financial Services Round Table (a group of CEOs and chairmen from Europe’s top banks), a member of the Financial Services Forum, a member of the European Banking Group (a group of over ten top European bank leaders formed to directly lobby the EU on “regulation” of the financial industry), and a member of the International Monetary Conference (IMC), an annual conference of private bankers formed to “compliment” the annual IMF meetings.

Whether through the leadership of Josef Ackermann, or now under the chairmanship of Douglas Flint, the IIF has been and will remain a major global player within the debt crisis and future financial crises, representing the organized interests of the financial markets. It’s no surprise, then, that even the Financial Times noted in 2010 that, three years after the financial crisis began, “the markets (and the bankers) still rule.”

Or as former Deputy Treasury Secretary Roger Altman noted, in 2011, that financial markets had become “a global supra-government” that “oust entrenched regimes… force austerity, banking bail-outs and other major policy changes,” whose “influence dwarfs multilateral institutions such as the International Monetary Fund” as “they have become the most powerful force on earth.”

We need look no further than the Institute of International Finance to see just how “the most powerful force on earth” is organized.

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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 hosts a weekly podcast show with BoilingFrogsPost.

Global Power Project: Exposing the Institute of International Finance, Part 1

 Global Power Project: Exposing the Institute of International Finance, Part 1

By: Andrew Gavin Marshall

Originally posted at Occupy.com

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This is the first of a series of exposés focusing on the Institute of International Finance (IIF), the very “visible hand” of financial markets. It is a continuation of the Global Power Project produced by Occupy.com. Part 1 examines the origins of the IIF.

Founded in 1983, the Institute of International Finance (IIF) describes itself as “the world’s only global association of financial institutions” with a membership that includes “most of the world’s largest commercial banks and investment banks,” along with sovereign wealth funds, asset managers, hedge funds, insurance companies, law firms, multinational corporations, development banks, multilateral agencies, credit ratings agencies and an assortment of other global financial and economic organizations. In short, the Institute of International Finance is the very visible hand of the global financial markets.

As the IIF notes on its website, its “main activities” include providing so-called “impartial analysis and research” to its members in order to “shape regulatory, financial, and economic policy issues….influence the public debate on particular policy proposals….[and work] with policymakers, regulators, and multilateral organizations… with an emphasis on voluntary market-based approaches to crisis prevention and management.”

It is also there to “provide a network for members to exchange views and offer opportunities for effective dialogue among policymakers, regulators, and private sector financial institutions.” The IIF proclaims it “is committed to being the most influential global association of financial institutions,” seeking to “sustain and enhance…. our extensive relationships with policymakers and regulators.”

The Institute of International Finance was formed at the beginning of the debt crisis of the 1980s, designed to establish a formal organization and representation for the interests of the world’s major banks and financial institutions. A meeting at Ditchley Park, England, was hosted by the National Planning Association (NPA) in May of 1982, which brought together senior representatives from major commercial banks in the industrialized Organization for Economic Co-Operation and Development (OECD) countries, as well as the Managing Director of the International Monetary Fund (IMF), Jacques de Larosiere; other top IMF and World Bank officials; the Comptroller of the Currency of the U.S., C.T. Conover; and the Head of Banking Supervision at the Bank of England, Peter Cooke, among many others. [1]

The meeting was designed to discuss the general international financial situation at the time. One of the main conclusions of the meeting was that banks needed access to more up-to-date and accurate information regarding the financial standing of debtor nations, for which it was felt that “an institution within the banking community might be created.” The information would be provided by major banks along with multilateral agencies such as the IMF, World Bank, and the BIS, which all “exhibited a willingness to assist in the efforts of the commercial banks… and to make as much data as possible available to the new institution.” [2]

The participants at the Ditchley meeting became known as the “Ditchley Group.” But their suggestions for a new banking institution did not stop at creating a mechanism for making better information available to banks. The group also envisaged a role for the new institution to undertake meetings directly between debtor nations and private banks, and to send teams of officials to nations to meet with senior government representatives to conduct economic and financial “reviews” of various countries around the world.

The Ditchley Group agreed to invite other banking institutions from the OECD countries to meet and discuss the possibility of creating such an organization, and a second meeting – “Ditchley II” – was held in New York in October of 1982, with the participation of 31 major banks from the U.S., Japan, UK, France, Canada, the Netherlands, West Germany and Switzerland, along with officials from the World Bank, IMF, Bank of England and the BIS. [3]

The meeting resulted in an agreement to establish such an institution, termed a “nonprofit corporation,” to be based in Washington, D.C., which could “suggest independence” from the large Wall Street banks and also “because it would provide proximity to the headquarters of the IMF and the World Bank.”

The organization would have a small and expert staff, overseen by a board of directors made up of individuals from many of the banks with the largest exposure to international loans, and that membership would also be granted to other institutions with significant international exposure. On January 11, 1983, the Institute of International Finance was incorporated in Washington, D.C., with the participation of senior officers from 37 major banks from Europe, Japan, and North and South America. [4]

Among the original participating banks were: (from Canada) the Bank of Nova Scotia, Canadian Imperial Bank of Commerce, the Royal Bank of Canada, and the Bank of Montreal; (from France) Banque Nationale de Paris and Credit Lyonnais; (from Germany) Dresdner Bank, Commerzbank and Westdeutsche Landesbank; (from Japan) Bank of Tokyo and Mitsubishi Bank; (from Switzerland) Credit Suisse and Union Bank; (from U.K.) Barclays, Lloyds and Midland Bank; (from the United States) Bank of America, Bankers Trust, Chemical Bank, Citibank, Manufacturers Hanover Trust, Mellon Bank, Morgan Guaranty Trust, Chase Manhattan and the First National bank of Chicago. [5]

By the mid-1980s, the IIF had a membership of 189 banks from 39 countries, representing more than 80% of the total international bank exposure to the “Third World.” And all this following the Institute’s “ultimate aim” to “improve the process of international lending” in the midst of the 1980s debt crisis. [6]

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While commercial banks established the Institute in order to “coordinate their activities” in the international arena, the banks and the powerful industrial nations and international organizations had worked to prevent such coordination from taking place among debtor nations of the Third World. The Group of 77 – a counterpart to the G7 which represents the majority of the word’s population – held a summit in 1983, where the debt crisis was of major concern.

The Latin American debtor nations, in particular, “were under considerable pressure from the U.S., the European Economic Community (EEC) and the IMF/World Bank not to entertain any idea of a “‘debtor’s cartel,’ or even to exchange and coordinate information.” So while the world’s major banks established a formal organization which essentially functions as an institutional banking cartel, the world’s debtor nations were pressured to avoid even sharing information with one another regarding the debt crisis. [7]

Thirty years after it was founded, the IIF today boasts a membership of more than 450 institutions in over 70 countries around the world. The IIF hosts a series of meetings every year, the most prominent being its semi-annual full membership meetings, taking place over the course of two days with presentations by private bankers and public officials and including roughly 800 members and guests.

The speakers at these events, according to the IIF report “The First 25 Years,” constitute “a Who’s Who of international financial policymakers and leaders of the global financial industry.” William R. Rhodes of Citigroup (and a former top IIF official) referred to the meetings as ensuring that the IIF became “the leadership organization of its kind.” [8]

The Managing Director of the Institute of International Finance from 1993 until 2013 was Charles Dallara, who had previously served as a managing director at JPMorgan & Co. from 1991 until 1993. Prior to his banking career, Dallars was the U.S. Executive Director of the IMF from 1984 until 1989, and held senior positions in the U.S. Treasury Department between 1983 and 1989. Today, Dallara is a member of the Council on Foreign Relations, the Executive Vice Chairman of the Board of Directors of Partners Group, a member of the boards of the Bertelsmann Foundation and the National Bureau of Economic Research, the Vice Chair of the Board of Overseers of the Fletcher School of Law and Diplomacy at Tufts University, and is a member of the International Advisory Board of the Instituto de Empresa.

The current president and CEO of the IIF is Timothy D. Adams, the former managing director of The Lindsey Group and former Under Secretary of the Treasury for International Affairs from 2005 until 2007, prior to which he served as the Chief of Staff to the U.S. Treasury Secretary from 2001 to 2003. Adams is concurrently a member of the board of the Atlantic Council, a member of the Atlantic Council’s Business and Economics Advisors Group, a Senior Advisor at the Center for Strategic and International Studies, a director of the Center for Global Development, a delegate at the China Development Forum, a member of the Council on Foreign Relations, and a member of the Business 20 (B20), a counterpart conference to the G20 meetings designed to provide the input of the world’s business community to the leaders, finance ministers and central bank governors of the world’s leading twenty nations.

The Institute of International Finance (IIF) represents the very “visible hand” of financial markets, wielding immense influence and boasting unparalleled access to central bankers and top policymakers from around the world. Look for the next parts in this series on the IIF as part of Occupy.com’s Global Power Project.

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 hosts a weekly podcast show with BoilingFrogsPost.

References:

[1] Walter Sterling Surrey and Peri N. Nash, “Bankers Look Beyond the Debt Crisis: The Institute of International Finance, Inc.,” Columbia Journal of Transnational Law (Vol. 23, 1985-1985), pages 111-113. [2] Ibid. [3] Ibid, pages 113-114. [4] Ibid, pages 114-115. [5] Ibid, page 115. [6] Ibid, pages 117-118. [7] Robert E. Wood, “The Debt Crisis and North-South Relations,” Third World Quarterly (Vol. 6, No. 3, July 1984), page 714. [8] IIF, The First 25 Years: 1982-2007 (Institute of International Finance, 2007), page 26.

Introducing the Global Power Project

Introducing the Global Power Project

By: Andrew Gavin Marshall

Originally Posted at: Occupy.com

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We live in an interdependent world, where nations are increasingly eclipsed in size and wealth by the major banks and transnational corporations which have come to dominate the global economy.

Royal Dutch Shell has more money than all but the top 22 countries on earth. Supra-national and international institutions like the European Central Bank and IMF punish the populations of Greece, Spain, Portugal, Italy and Ireland into poverty and conditions of exploitation. Banks and corporations make record profits while poverty soars, debts increase and hunger spreads. Half the world’s population lives on less than $3 per day, over 1 billion people live in slums, and a global land grab coupled with a six-year-long global food crisis is pushing populations off their land and into deeper poverty and extreme hunger.

Western governments impose “austerity” at home while waging wars and supporting dictatorships abroad. Across the Arab world populations have been in revolt, labor unrest in South Africa reveals the persistence of economic apartheid, and popular resistance has exploded across southern Europe, while student uprisings have shaken Britain, Chile, Quebec and Mexico.

Indigenous peoples in the western hemisphere are mobilizing and resisting the destruction of the natural world, from Ecuador, Brazil, Guatemala and Mexico to Canada. The Occupy Movement emerged as a reaction to the rapacious system of global power that has impoverished the world, devastated the environment, waged wars and, in the past few decades, emerged as a highly integrated global class of oligarchs.

It is within this context that Occupy.com is beginning a research project to examine the networks of global power and how they operate, providing a resource to activists and others who wish to engage in opposition to the global power structures as they currently exist. This initiative is the Global Power Project.

The aim of the Global Power Project is to map the connections between the world’s dominant institutions of power, by examining the relationships and points of cross-over among the individuals who direct these institutions. The institutions that will be examined include the major banks, central banks, oil companies, mining corporations, media conglomerates, major think tanks, foundations, university boards and other international organizations.

The aim is to expose not only the revolving door between government and private institutions, but to name names and directly call out the global elite based on their affiliations and networks of influence.

The first installment of the Global Power Project will examine six major American banks: JPMorgan Chase, Goldman Sachs, Bank of America, Wells Fargo, Morgan Stanley and Citigroup. Executives, board members and major advisers to these institutions will be studied, with information drawn from their official CVs, biographies, published interviews or financial publications, and collected into a detailed appendix outlining the individuals’ past and present affiliations with other dominant institutions of power.

This includes examining the links between those who manage the big six banks and government agencies, universities, think tanks, foundations, international organizations, the media, multinational corporations and other organizations. From the data collected, we will be able to draw conclusions about the networks of influence and the shared leadership positions that enable these banks and bankers to wield significant influence over other institutions.

This is not a study of economic dependence or the investments made by banks. It is a study of the social organization, interaction and integration of national and global elites. Instead of viewing institutions as separate entities, and often in opposition to one another as it is commonly suggested, the Global Power Project will seek to document the increasingly globalized connections that bind the financial and political elite, and to expose this highly integrated network of individuals spread across an array of institutions both national and global.

The Global Power Project does not adhere to a particular ideological view, philosophy or dogma. Rather, it focuses on the facts: by examining the connections, affiliations and cross-memberships through which elites govern our dominant social, economic and political institutions. From this research we hope to offer a clearer understanding of the current networks and structures of global power, which can serve as an invaluable resource for those seeking to study, understand, expose or challenge those existing structures.

The initial, forthcoming installment in the Global Power Project will focus on the major Wall Street banks, studying their executive leadership, members of the boards of directors, international advisory boards and other key officials operating within those institutions.

Keep a lookout and spread the word. The mapping of networks of global power is about to begin.