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I have recently launched a Kickstarter campaign to try to raise money to support my efforts to finish the first book of what will likely be a series on ‘Power Politics and the Empire of Economics’.
What I am asking of my readers is not only to consider donating to the project, but more importantly, to share and promote it through social media, by sending it to others who you think may be interested, and to help get the word out in any way you can!
Every bit helps, and a great deal of help is needed if this is to be successful!
I have collected below links to the campaign, as well as a video I made to promote it, and links to the sample introduction chapter that I published online so that potential patrons could read the kind of material that they would be supporting.
About the Project:
This book will tell the stories of the rich and powerful oligarchs and family dynasties who collectively rule our world: the global Mafiocracy, operating behind-the-scenes playing their games of power politics, globalization’s Game of Thrones where rich and influential families play their games, balancing collusion and cooperation with fierce competition to rule the world Empire of Economics.
In 1975, Henry Kissinger told President Ford: “The trick in the world now is to use economics to build a world political structure.”
This book is that story.
A small network of banks and other financial institutions dominate the global economy, its wealth and resources. This small network of corporate power functions as a global financial Mafia, complete with excessive criminal behaviour in laundering drug money, funding terrorists, rigging interest rates and manipulating markets.
Name a nation, and there are rich dynasties that rule behind the scenes. The Rockefellers in the United States, the Rothschilds in France and Britain, the Agnelli family in Italy, the Wallenbergs in Sweden, the Tata family of India and Oppenheimers of South Africa, the Koc and Sabanci families of Turkey, the Gulf Arab monarchs and the rich industrial families of Germany with dark Nazi pasts.
Germany once again rules Europe, with the European Union’s institutions of unelected technocrats undertaking a process of internal colonization as they impose their economic empire upon Greece, Spain, Italy, Ireland, Portugal and Cyprus. Finance ministers and central bankers are the agents of empire, cooperating closely with bankers, oligarchs and dynasties to create a world which best serves their interests. The global financial Mafia mingles with political leaders at forums and secret meetings like the Bilderberg group, the Trilateral Commission and the World Economic Forum.
From the streets of Athens, to Egypt, Turkey, Brazil, Spain, China, South Africa, Chile, Canada, and in the streets of Ferguson and Baltimore, people are rising up against exploitation, repression and domination.
This book is not simply a collection of stories of the ruling Mafiocracy; it is designed to encourage strategy among popular and revolutionary movements capable of creating something altogether new. It is time to do away with a world ruled by oligarchs, and save the species from itself. But first, we must know our world better.
Help me to complete the first book in a series on ‘Power Politics and the Empire of Economics’. For four years I have been doing my own research, scouring the archives of the New York Times, Wall Street Journal, Financial Times, government documents, official reports and corporate strategies, studying the world of power and empire, translating the political language of ‘economics’ into plain and simple English.
I have been published in multiple news sources, online and in print, interviewed by radio and television networks, and now I am asking for your help to raise $10,000 so that I can finish the first book in this series, to expose the Empire for all to see, its strengths as well as the weaknesses left exposed for us to exploit. Let us bring true democracy and an end to Mafiocracy. Help me to write this book, and together, let’s help each other to end the Empire.
Donate today. Thank you.
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.
Global Power Project: Bilderberg Group and the Power of the Finance Ministry
By: Andrew Gavin Marshall
8 January 2015
Originally posted at Occupy.com
This is the seventh installment in a series looking at the activities and individuals behind the Bilderberg Group. Read the first part, second part, third part, fourth part, fifth part and sixth part in the series.
Throughout the course of the financial and debt crises in Europe, politicians played a supporting role to financial markets and financial technocrats – that is, the economists, academics, central bankers, finance ministers and heads of international organizations who articulate the interests of powerful financial and social groups in the technocratic language of “expertise,” and who enact policies, create and shape major institutions, and whose decisions affect the lives of hundreds of millions, even billions, of people.
A number of the world’s top technocrats between 2008 and 2014 have been members or guests of Bilderberg meetings. Most especially, European technocrats have been highly represented within the membership, and were among the most influential players throughout Europe’s financial and debt crises. This article examines the technocratic institution of the “Finance Ministry,” specifically as it relates to the European debt crisis and the Bilderberg Group.
The Ministry of Finance
Finance ministers and ministries have truly immense power in the modern world. They manage the finances – money and debt – and budgets of states, and are responsible for the allocation of funding to governments, their departments, and their policies. Depending on an individual nation’s power and governance system, finance ministries can often wield influence that dwarfs other top government officials, and occasionally even presidents and prime ministers. They are pivotal determining domestic and foreign policy, and most responsible for designing and implementing financial and economic policy.
The wealthier a nation, the more important its finance ministry, and the more powerful are its officials. In the United States, it’s the Treasury Department and its secretary; in the U.K. it’s the Treasury and the Chancellor of the Exchequer; in most European nations, and in Japan, it’s simply the Finance Minister.
In January of 1979, U.S. President Jimmy Carter met with the leaders of France, Britain and West Germany. The New York Times noted that Carter was the only leader in the group who had not previously served as a finance minister. The paper’s Frank Vogl wrote: “More former finance ministers are now occupying the top political offices in the leading industrial nations than ever,” with the addition of Japan’s new prime minister, Masayoshi Ohira. The leaders knew each other well, having spent years interacting at major conferences and coordinating policies as finance ministers before taking the top political spots. Collectively, they are key officials of “global economic leadership.”
The role of finance ministers in global economic leadership has only expanded in subsequent decades. They meet, discuss and coordinate global policies alongside central bankers at the G7, G8 and G20 meetings. The also hold shares in and are represented on the boards of international organizations like the International Monetary Fund (IMF), which manages the finances and economic policies of dozens of countries around the world.
Europe in Crisis
Europe’s finance ministers were pivotal in the management of the European debt crisis. These technocrats shaped the financial policies of powerful nations and international organizations, coordinated with central banks, created new transnational institutions, and pushed policies that have had profound effects upon the future of the European Union and the 500 million people who live within it. Many of the most influential finance ministers in Europe were also frequent participants in Bilderberg meetings over the period of time from the beginning of the financial crisis in 2008 and throughout the debt crisis until 2014.
Throughout the course of the European debt crisis, Germany was joined by what the Financial Times called “its two closest allies in the Eurozone,” the Netherlands and Finland, who shared the German hardline demands of austerity and structural reforms for countries in crisis. Together, the central banks and finance ministries of these three nations frequently coordinated actions and objectives.
The three countries were among the major creditors to the crisis-hit debtor nations, and thus their united response to the crisis guaranteed that they would be the most influential national bloc within the E.U. This gave them a great deal of leverage in shaping the policies of other major technocratic institutions, like the European Central Bank (ECB) and the European Commission (EC).
In 2008, the Financial Times ranked Finland’s Jyrki Katainen as the top finance minister in Europe, describing him as “part of a new wave of youthful center-right European leaders,” and one who could possibly become the future Finnish prime minister. In 2010, Katainen was again ranked on the top ten list of the best finance ministers in Europe, as determined by a group of judges who were mainly chief economists from major banks.
The Financial Times noted that Katainen, who had served as minister since 2007, led Finland “through its deepest recession since independence from Russia in 1917,” and that he was “a chief ally of Germany in the push for tougher European Union fiscal rules.” Katainen had attended Bilderberg meetings in both 2009 and 2010.
The following year, in 2011, Katainen took the top job as Prime Minister of Finland, forming a coalition government in which he appointed one of the opposition party leaders, Jutta Urpilainen, as the Finance Minister, the first woman to hold the post. The Financial Times noted that Urpilainen was “likely to take a tough stance on Eurozone policy,” committing herself and the government “to helping create a more stable Eurozone.”
In May of 2012, the Financial Times wrote that previously as finance minister and presently as prime minister, Jyrki Katainen had taken Finland on “a hard line over matters such as the Greek bailout and austerity, often exceeding the position even of Germany.” As part of this “hard line” abroad, Finland also employed it at home, with Katainen overseeing the implementation of successive austerity measures. In 2013, while Finland was entering its third recession since the financial crisis began – all under Katainen’s watch – the prime minister announced further budget cuts.
Finland’s hard line from 2011 on was pushed by its finance minister Jutta Urpilainen, “who took a more demanding position on the crisis.” Urpilainen attended Bilderberg meetings in 2012 and 2013. In 2011, the Financial Times ranked Urpilainen on the list of top ten European finance ministers, noting that she “demanded ailing fellow Eurozone economies provide collateral in return for aid… earning herself a reputation in Brussels as stubborn.”
She again earned a top ten spot in 2012, with the Financial Times commenting that she had “taken one of the toughest approaches on bailouts among her European counterparts,” and in doing so had “caused tension with her predecessor, Kyrki Katainen,” then serving as prime minister.
In the midst of the eruption of the Greek debt crisis in 2010, the Greek Finance Minister, George Papaconstantinou, who was responsible for negotiating the E.U. bailout, attended that year’s Bilderberg meeting. That same year, the Financial Times gave him a top ten ranking, noting that he had “stayed cool while negotiating harsh fiscal and structural reforms with the European Union and [IMF],” and that he cut the budget deficit “by a national record.” This, of course, had extremely negative consequences for the population of Greece.
In the midst of Italy’s exploding debt crisis in 2011, its finance minister, Giulio Tremonti, attended that year’s Bilderberg meeting having also earned himself a top ten ranking in 2009. A former Italian finance minister, Tomasso Padoa-Schioppa, had also attended Bilderberg meetings between 2008 and 2010.
In 2013, the Bilderberg meeting was attended by Bjarne Corydon, the Danish finance minister, as well as Anders Borg, the Swedish finance minister. Anders Borg ranked among the top ten finance ministers in all of the Financial Times surveys between 2008 and 2012, including holding the number one and number two ranking for 2011 and 2012, respectively. In 2010, the Financial Times noted that “Borg has had a good crisis,” as he “established himself as one of Europe’s most authoritative economic voices, and his reputation has been enhanced by Sweden’s rapid recovery from recession.”
In 2011, the Financial Times wrote that Borg, a former banker who had served as Swedish finance minister since 2005, “is a master at blending erudition with popular appeal,” noting that his criticism of bank bonuses “won voters’ hearts while his devotion to fiscal discipline [austerity] and sound public finances has endeared him to the markets.” Borg carries heavy weight in Brussels, headquarters of the European Union, earning a reputation as “the wizard behind one of Europe’s best-performing economies.”
Shortly after the democratically-elected governments of Greece and Italy were replaced with bankers and economists in a technocratic coup in November of 2011, the Financial Times reported that “Sweden has, in effect, had an unelected technocrat running its public finances for the past six years.” That technocrat, Anders Borg, previously “worked as a bank economist in the private sector and as an adviser to both Sweden’s central bank and the country’s Moderate party.”
Throughout the European debt crisis, meetings of the Eurogroup, composed of the finance ministers of the 17-member states of the single currency, played a key role doing “the heavy lifting on the bloc’s economic policy, from banking reforms to bailouts.” The “Troika” that was formed to manage the debt crisis – composed of the European Central Bank, the European Commission and the International Monetary Fund – would report directly to the Eurogroup of finance ministers on all important decisions related to the bailouts and austerity packages.
Finance ministers, together with Europe’s central bankers and other technocrats leading major EU and international organizations, were key to shaping the response and policies of the financial and debt crisis. At Bilderberg meetings, all of these officials were able to gather together, alongside captains of industry and top financiers, to discuss Europe’s problems and coordinate responses.
Andrew Gavin Marshall is a freelance writer and researcher based in Montreal, Canada.
Global Power Project: Bilderberg Group and the Cult of Austerity
By: Andrew Gavin Marshall
26 December 2014
Originally posted at Occupy.com
This is the sixth installment in a series examining the activities and individuals behind the Bilderberg Group. Read the first part, second part, third part, fourth part, and fifth part in the series.
It could almost be a slogan: Bilderberg brings people together. Specifically, every year, the Bilderberg Group holds secret, “private” meetings at four star hotels around the world, bringing together nearly 150 of the world’s most influential bankers, corporate executives, dynasties, heads-of-state, foreign policy strategists, central bankers and finance ministers. It also invites the heads of international organizations, think tanks, foundations, universities, military and intelligence officials, media barons, journalists and academics.
Participants at Bilderberg appreciate having a closed-door forum where they can speak openly and directly to one other – and of course, not to us. But perhaps we, the people, would also like to hear what they have to say. For the past four years, Bilderbergers have been running around the world preaching the gospel of “austerity” and “structural reform” – very important terms. If you don’t know what they mean, Bilderbergers are working their day jobs to make sure you will learn.
What is Austerity?
If you’ve been to Bilderberg, chances are you’re a fan of austerity: promoting it, demanding it, implementing it and profiting from it.
Austerity has several names and phrases, including “fiscal consolidation” and “balancing the budget.” There are so many things to call it – but in the end you know it’s austerity because the policies are the same and the effects of those policies are, too. There is a reason why political and technocratic language is made to sound so vague and dull: because behind the words lie brutal actions and devastating consequences. If we understood their true meaning, their use would very often be shocking and unacceptable. Instead, their use has become common and seemingly inconsequential.
Here, however, are the consequences:
Austerity is a set of policies which are, in theory, designed to help a nation or government reduce its “budget deficit,” balance its books and, in time, even produce a yearly “surplus,” or profit. Thus, “austerity measures” are designed to do one thing: cut spending on almost everything, except, of course, the really important things like military and police, subsidies to large banks and corporations, and debt repayments. Otherwise it’s like at a clearance sale for countries, where everything must go. This is how the story generally works:
A country is in the midst of a “fiscal crisis.” It must make a very large interest payment on a debt it owes to some very large banks. These banks individually control more wealth and assets than most of the countries they deal with. Collectively, the banks hold more wealth and assets than any other single group in the world, and they always want their pound of flesh. When a country needs money, banks are there to help. Then the country is in their debt, with regular interest payments at a premium. A country can borrow an enormous sum of money by doing this, and not just from banks but from an array of financial institutions.
Apart from direct loans, this money is often borrowed in a very specific way. A country is in need of financing its budget over the coming year, so it plans what is called a “bond sale.” Bonds are financial instruments (aka, numbers on screens) that represent government or corporate debt. Governments sell their bonds in the “open market,” and when a government sells its bonds, the buyers are typically other nations, banks, asset management firms, sovereign wealth funds, international organizations and rich people. These parties “purchase” the bond at a set price, providing cash which that government puts in its treasury or finance ministry. In return, the newly purchased bond is a promise of future profits. It comes with a set interest rate and agreed upon dates for future payments. The government gets to fund its budget and manage its ministries and policies, while the banks earn interest – and influence.
The arrangement suits both parties, so long as it keeps going forever. But of course, it doesn’t. Eventually, the country builds up a substantial overall debt. Its interest payments become much larger and more frequent. Its need to borrow becomes much greater, and in ever greater amounts. On top of managing its budget, the government now has to pay huge sums of money to the global financial cartel. If the government can’t fund its budget, provide services and pay employees, it’s a government that is likely to collapse. But if it doesn’t pay its interest to the banks, then the government will almost certainly collapse. This is because it has entered the world of global financial warfare.
If a nation looks like it’s facing such a situation (which we call a “fiscal crisis”), financial markets tend to lose confidence in that country’s ability to repay its debts, and the downward spiral proceeds. They now begin to see the country as a “risk,” and suddenly institutions like credit ratings agencies are downgrading the country’s rating, just like a credit card company downgrades your individual rating. There are only three ratings agencies that dominate almost the entire global market for rating credit, so when they declare a downgrade, it becomes the gospel. This means that once a country is officially a risk, the financial institutions that continue to purchase its bonds (ie. debt) can demand a much higher interest rate on future payments, since those institutions are taking a greater risk.
At this point, one of two things happens. Either financial markets continue to purchase the country’s bonds with higher interest rates, or they decide that the country is too much of a risk and they refuse to fund it further. If they continue funding, the country continues to make its payments, though it remains unable to fund its regular functions. The country is left in a perpetual fiscal crisis whereby the interest payments get larger and the crisis gets deeper. This continues until financial markets stop purchasing debt.
The country is now in a major crisis. This is when rich, powerful governments and international organizations come to the “rescue” with money to lend – specifically, the United States, Germany, Britain, France, Japan, the European Union and the International Monetary Fund (IMF). But their money comes with strict conditions. These conditions have been defined and demanded beforehand by the major banks and financial institutions, and by the plethora of economists, central banks and finance ministries that support them. These are the “experts” and technocrats of global economic governance.
Such conditions require a country to “fix the problem” that created its fiscal crisis. But the main problem facing countries, according to bankers, economists, technocrats and politicians, is that they spend far too much money on social services that benefit their populations. Therefore, in order for a country to be able to borrow, it must implement “correct” policies designed to balance its budget and restore public finances. These policies are collectively described as “austerity measures,” and the process of implementing them is frequently referred to as “fiscal consolidation.” Long story short: governments must cut spending.
This means that healthcare, education, pensions, welfare and social services must be drastically gutted, masses of public sector employees must be fired, and taxes must be increased. Thus, austerity creates a new class of unemployed, pushed into poverty and deprived of all the resources that are meant to help the poor and disadvantaged, let alone everyone else. The economy goes into a deep depression as people stop spending and businesses collapse, unemployment and poverty soar, suicide and mortality rates increase, and racial and ethnic conflicts erupt. All of this is done so that a country is able to get a large loan (sometimes called a national bailout) from institutions like the IMF, European Union and the central banks of powerful U.S., Japanese and European nations. This loan is provided in order to pay the interest the country owes to the global financial cartel.
Populations are impoverished and societies are devastated in order to pay interest to global banks. All of this happens as a result of numbers on screens. This is “austerity,” or “fiscal consolidation,” as we know it.
Time to Reform
Either coupled with or following from austerity measures, lenders and bankers demand that the conditions of the loans include not only “necessary” austerity measures, but also important “structural reforms.” This bland term hides policies and objectives behind it that have the effect of radically altering the entire structure of the economy over a period of several years or even decades. These “reforms” will make the economy strong and “competitive” again, and bring the country out of its austerity-induced depression.
Typical structural reforms include privatizing all state-owned companies, assets and resources, which allow foreign companies, states and banks to purchase important national assets cheaply (and provide a short cash infusion in the process). Countries then have to further “liberalize” markets by reducing any and all government protections and regulations over specific sectors of the economy, allowing foreign banks and corporations to “compete” on an “even playing field.” This forces local and national industries, businesses and communities to compete against some of the largest transnational corporations in the world, many with more wealth and assets than their entire country is worth. As a result, foreign investors can afford to out-compete the local economy by providing cheaper products and services while maintaining global profits. Local businesses cannot compete, so they fail or are bought up. This often contributes to growing unemployment.
One of the key “structural reforms” demanded is “labor flexibility.” In countries with unions, workers rights, pensions and protections, where the labor force has institutional power, the labor market is often considered “rigid.” It does not bend to the wishes and demands of corporations and financial markets that want labor to be “flexible” to their demands. What do they demand? Cheap, exploitable labor. Implementing “labor flexibility” means it’s necessary to dismantle labor protections, regulations and benefits. Essentially, it’s a war on the working class.
“Structural reforms,” in essence, open up a nation, its resources and its population to be controlled, exploited and plundered by the world’s largest banks and corporations. These would be hard policies to sell if those who sold them spoke plainly. Instead, they describe a world in which nations need to “increase competitiveness” and implement the necessary “structural reforms” to create “economic growth.” The point is that it’s all so technical, you’re not supposed to understand it. But actually, it’s pretty simple. Which is why, every day, more and more of us are getting the message.
Andrew Gavin Marshall is a freelance researcher and writer based in Montreal, Canada.