Andrew Gavin Marshall

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Kickstarter Campaign for a Book on the Empire of Economics

Dear Readers,

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.

Read the sample chapter here!

Read the pdf version here!

Donate today. Thank you.

Andrew Gavin Marshall

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Power Politics and the Empire of Economics: An Introduction

Power Politics and the Empire of Economics: An Introduction

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By: Andrew Gavin Marshall

27 May 2015

The following is a sample chapter from an upcoming book.

You can download a pdf version here: Power Politics and the Empire of Economics 

The President sat and listened to his closest adviser as they plotted a strategy to maintain Western domination of the world economy. The challenge was immense: divisions between industrial countries were growing as the poor nations of the world were becoming increasingly united in opposition to the Western world order. From Africa, across the Middle East, to Asia and Latin America, the poor (or ‘developing’) countries were calling for the establishment of a ‘New International Economic Order,’ one which would not simply serve the interests of the United States, Western Europe, and the other rich, industrial nations, but the world as a whole. It was on the 24th of May 1975 when President Gerald Ford was meeting with his Secretary of State and National Security Adviser, Henry Kissinger, easily the two most powerful political officials in the world at the time. Kissinger told the President: “The trick in the world now is to use economics to build a world political structure.”[1]

Ford and Kissinger agreed that the United States could not accept a new ‘economic order’ that would undermine American and Western power throughout the world. Uprisings, revolutions and liberation movements across Africa, Asia and beyond had largely thrown off the shackles of European colonial domination, establishing themselves as independent political nation-states with their own interests and objectives. Chief among those goals was for economic independence to follow political independence, to take control of their own resources and economies from the Europeans and Americans, to determine their own economic policies and help to redistribute global wealth along equal and just lines.

The problem for the Western and industrial nations, with the United States at the center, was that formal colonial domination was no longer considered acceptable. In previous decades and centuries, the rich and powerful nations would directly colonize and control foreign societies, establishing puppet governments and protectorates, extracting resources, exploiting labour and expanding their own national power and international prestige. Following the end of World War II, such practices were no longer politically or publicly acceptable. The era of decolonization had taken hold, and the people of the world were failing to remain passive and obedient in the face of great injustices and inequality. War had become a bad word, colonialism was no longer en vogue, and belligerent political bullying by the rich countries increasingly risked a major backlash, threatening to unite the entire world against the West.

A new strategy for global domination had to be constructed. The West could not afford a direct political or ideological confrontation with the developing world, with many top American officials, including Henry Kissinger, acknowledging that if they were to pursue such a strategy they would be isolated and lost, with even the Europeans and Japanese abandoning them. Foreign ministers and heads of state could not appear to be attacking or seeking to dominate the developing world.

It was decided that the war would have to be waged largely in the world of economics and finance, where the conversation would change from that of colonialism and imperialism to the technical details of economic policy. The imperial interests and objectives of the powerful nations that had existed for centuries could no longer be articulated in a direct way. But those same interests and objectives would not vanish. Instead, they would be hidden behind bland, vague and technical rhetoric. The language of economics provides the appearance of impartiality, backed up by pseudo-scientific-sounding studies and ideologies, accessible only to those with the proper training, education and experience, otherwise inaccessible and incomprehensible to the general public. Empire was a thing of the past. In its place rose a new global economy, built by banks not bombs, expanding the reach of corporations not colonies, managing debt not dominions.

The “world political structure” which Kissinger described would not, however, make militaries and foreign ministers and diplomats irrelevant. They would still have a role to play in maintaining and expanding empire, though never calling it by its proper name, instead using words like ‘democracy’, ‘freedom’ and ‘markets’. But the role of such officials would often become secondary to that of the financial and economic diplomats, who would increasingly become the first line of offense in constructing the “world political structure,” the Empire of Economics.

Two days after Kissinger articulated this strategy to President Ford, another meeting was held at the White House with several more high-level cabinet officials. The discussion was a follow-up on the U.S. strategy to construct such a system. Stressing that political diplomats and foreign ministers could not take on the developing world directly, Kissinger told the assembled officials, “it is better to have the Finance Ministers be bastards, that’s where I want it.”[2]

This book is the story of how financial diplomats, politicians, bankers, billionaires, family dynasties and powerful nations have used economics to build a “world political structure,” engaging in a constant game of power politics with and against each other and the rest of the world to construct and maintain their Empire of Economics for the benefit of a small ruling class, the global Mafiocracy: a super-rich, often criminal cartel of global oligarchs and family dynasties.

It is a brutal, vicious world of secret meetings, behind-the-scenes intrigue, financial warfare and coup d’états, economic colonization and debt domination. It is the unforgiving world of empire, an immense concentration of global wealth and power, a parasitic system of world domination built on the impoverishment and exploitation of billions. And it is a world obscured and hidden behind the dry, dull and seemingly empty rhetoric of economics. It is a language in need of translation, a reality in need of elucidation, and an empire in need of opposition.

Power Politics and Empire

It was the largest and most powerful empire the world had ever known. It spanned the globe, across oceans and seas, countries and continents, enveloping much of the known world – and the people throughout it – within the domineering shadows of its political, economic, social, cultural and financial institutions and ideologies. Those who ruled were the wealthy and war-like family dynasties, individual oligarchs, kings of coin, titans of industry, and a religious priesthood of proselytizing propagandists. These rulers would engage in a constant game of ‘power politics’ with and against each other in the quest to gain title, money and influence.

They lie, cheat, steal, kill and conquer; they plant their flags and preach their gospels, serve their interests and those of their unknown (or sometimes) masters. It requires a constant cunning, managing an endless lack of trust for all those around you, fearful that on your way up, others might seek to cut you down. To play the game of power politics in the age of empires is to be pragmatic, strategic and ruthless; it requires no less, but frequently more. It is a practice passed down through families, institutions and ideologies. No, this is not ‘Game of Thrones’, but rather, the Game of Globalization in the Empire of Economics: power politics of the 21st century.

But the game itself has been with humanity as long as empire, and was always seen at the center of the system of power within every empire. Human systems – that is, what we call ‘civilization’ and ‘society’ – are, ultimately, human creations with humans in control. Thus, power – at its center – is always dependent upon the interactions, relationships and emotions of the few individuals and families who rule. When such people get angry or throw a tantrum – because the neighbor boy stole his toy (or Russia annexed Crimea, for example) – wars are waged, and the poor are sent to go murder or be murdered, cities burn to the ground, nations crumble into dust.

The game is not known to many, save for those who play it. The masses are left with simple images, rumours and speculation, if anything at all. A public persona of the more visible rulers must be carefully constructed so as to legitimize their authority. The people must be satisfied to the bare minimum, so that they do not rise up in resentment and fury against the few who live in the most obscene opulence and imperial impunity. If the consent of the population is not maintained, a ruler must seek to control them in other ways, which generally means seeking to crush them, to punish them into submission and subservience. Kill and conquer at home and you can kill and conquer abroad.

Control is based upon a mixture of consent and coercion. The people must be either willing to let the rulers rule, to accept their position in society without question, or they must be made to fear the reach and wrath of the rulers, to be punished and persecuted, segregated and isolated, beaten, raped and murdered. The rulers must be vicious, but appear virtuous. If, however, a choice must be made between acting ruthless and appearing righteous, it is better for the rulers to be wretched and murderous, for the game of power politics is never won by virtue alone, but being vicious can get you far enough without assistance.

Niccolo Machiavelli wrote his book The Prince more than 500 years ago as an examination of power politics and methods through which one can achieve and maintain power within the old warring Italian city-states. Having long served as an adviser and strategist to various rulers, including princes, popes and dynasties, Machiavelli asserted that “it is desirable to be both loved and feared; but it is difficult to be both and, if one of them has to be lacking, it is much safer to be feared than loved.” He explained that this was so because “love is sustained by a bond of gratitude which, because men are excessively self-interested, is broken whenever they see a chance to benefit themselves.” On the other hand, “fear is sustained by a dread of punishment that is always effective.”[3] Machiavelli has long been accused of being a cynic or pessimist in his interpretations of human nature, but this misses the point.

Machiavelli’s work was examining the attitudes, nature and actions of those who wielded significant power, which was always a small minority of the population. Indeed, far from a cynical interpretation, The Prince is rather a pragmatic and accurate interpretation of a deeply cynical world where every institution and individual wielding significant influence engages in a constant game of power politics designed to benefit themselves, maintaining or expanding their own power, often at the expense of others. It is a world where every relationship, title, position and even marriage holds strategic significance. For those individuals and families who rule, every decision must be made as a calculated attempt to preserve and expand their power. If this is not done, they will not remain rulers long, for this is how the game is played and won, and if one does not play by the rules, others will. Thus, the more cunning and ruthless a strategist, the more likely they are to elevate through the hierarchy because they will do what others will not, acting without hesitation to manipulate or crush others in order to rise higher.

It is a game – like that of all empires past – in which the few compete and cooperate with one another in the advancement of their own individual, familial, national or global interests, expanding their empires. It is a game in which the vast majority of humanity are – as they have long been – left to suffer the consequences, fight the wars, drown in debt, poverty, hunger and misery. On occasion, and increasingly often, groups of people – segments of the population – rise up in resistance, riot, revolt or even revolution. This is when the people are able to engage more directly in the game of power politics, because they change the game. Suddenly, all the key players at the top notice the building fury of the masses and so the game itself is put at risk. The key players will almost always – even in spite of their frequent competition and opposition to each other – work together if it means protecting the game itself.

A useful comparison is that of a Mafia crime network, in which the various heads of families may sit at the same table though they often feud with one another, working together to mutual benefit when possible, though occasionally whacking one another off when the competition grows fierce. It is a delicate balancing act of competition and cooperation, but when the criminal network is itself threatened, perhaps through the efforts of an ambitious district attorney or crackdown on organized crime, the various families will seek to unite in their efforts to protect the racket which benefits them all. If they remain divided in the face of growing opposition and potential external threats, they increase the risk that they will be conquered. When the game is threatened, the players must stand together or fall apart.

For successful rulers, the balance of competition and cooperation – vicious and virtuous – is present both in their relationships with other rulers, and with the larger populations. And so the rulers themselves – the oligarchs and dynasties – span both private and public realms: they are presidents and prime ministers, kings, queens and sultans, corporate chiefs, billionaires and bankers, consultants and advisers, academics and intellectuals, technocratic tyrants and plutocratic princelings. Their world is not our world. But it rules, wrecks and ravages our world and the people and life within it. It is a game that steers humanity toward certain extinction resulting from excessive environmental devastation, guided by that ever-present drive within those who have the most for more, more, more.

The game is little more, at its core, than basic gangsterism, its players little more than petty tyrants. Such personalities, egos and interests populate all sectors of society, all institutions, frequently appearing in inter-personal relationships. The more power they have, the greater the repercussions of the game. At the top of the global power structure are the personalities and families of immense wealth, political influence and prestige. With the same basic principles of a Mafia structure, the individuals and institutions that play the game of power politics in the age of globalization – in the Empire of Economics – are perhaps best understood as a global Mafiocracy. It makes no difference whether a nation is ruled by a monarchy, a dictatorship or democracy: the Mafiocracy is ever-present, and ever-expanding in its wretched reach.

The State of Empire

The world is defined and dominated largely by institutions, individuals and ideologies. The institution of the nation-state is perhaps the most obvious example, best represented by the world’s most powerful country, the United States of America. The government of the United States is composed of three separate branches (or institutions): the executive (President and Cabinet), legislative (Congress/Senate) and judiciary (the Supreme Court). The executive leads the government, while the role of the legislative and judiciary is (theoretically) designed to keep a check on executive power, preventing it from accumulating too much authority in one branch, threatening the potential for tyranny.

Since World War II, the executive branch has accumulated increased powers within the U.S. government, with a wide mandate to manage foreign and economic policies specifically, with little oversight and few checks from the legislative and judiciary branches. The executive is composed of a wide array of institutions itself, each with their own specific mandates, interests, and varying degrees of influence. These include the many cabinet departments, such as the Treasury Department, Defense Department (Pentagon), State Department, CIA, National Security Council (NSC), Department of Homeland Security, and many more. In addition, since 1913, the Federal Reserve has functioned as the central bank of the United States, operating with a large degree of independence from the other branches of government, including political independence from the executive branch (apart from the President’s ability to appoint the Chairman and Board of Governors), and no oversight from Congress (though the Fed chairman will occasionally testify to Congress).

Individually and collectively, these government departments and institutions manage hundreds of billions and even trillions of dollars in assets and funds, making them individually larger than most multinational corporations and banks in the world. These departments within the U.S. government are largely responsible for the maintenance and expansion of the American imperial system. Since the time of ancient Nubia and Egypt thousands of years ago, much of the world has been dominated by empires, rising, expanding and collapsing over centuries and millennia, running through ancient Greece, Rome, China, Aztec and Inca, Persian, Ottoman, and in the past five hundred years with the rise and demise of the European empires whose reach expanded the globe. For the most part, imperial systems have been dominated by families, often called royalty, sultanates, emperors or emirs. The essential interest and priority of all empires has been to protect and expand their empire, largely for the benefit of its ruling class or groups, with the imperial family at the center of power.

It is only a phenomenon of the post-World War II period that denial of the existence of empire is commonplace. Through the two World Wars of the 20th century, empires collapsed and faded into history. World War I led to the collapse of the German, Russian, Austro-Hungarian and Ottoman empires. World War II led to the collapse of the Japanese and Nazi empires, and its aftermath resulted in the erosion of European colonial domination, as the British, French, and other European colonial powers had to adjust to a new global order under American hegemony. It was in the post-World War II period that the United States had achieved unprecedented economic and political power. With just over 5 percent of the world’s population, the U.S. controlled roughly half the world’s wealth. Citing this very statistic, the U.S. State Department (responsible for managing diplomacy and foreign policy) published a policy paper in which top officials acknowledged that the global inequality that existed between the U.S. and the rest of the world would lead to “envy and resentment.” The “real task” of the United States was “to devise a pattern of relationships which will permit us to maintain this position of disparity without positive detriment to our national security,” doing away with “the luxury of altruism and world-benefaction.”[4]

Europe was devastated by the war, and the United States occupied the West with the Soviet Union occupying the East of the continent. The European empires were crumbling, and the process of decolonization had begun to take the world by storm, with the U.S. attempting to manage the process on behalf of its Western European allies. In its strategy for world domination, the United States sought to rebuild its former war-time enemies – Germany and Japan – into economic powerhouses, with West Germany acting as the locomotive for European integration (into what is now the European Union) and Japan acting as a counterweight to the spread of Communism in East Asia. Western Europe, Japan and other allies depended upon the United States military to protect their ‘security’ interests around the world, arming favorable dictators, supporting coups, fuelling civil wars, undertaking large occupations and counter-insurgency operations targeting independence, anti-colonial and revolutionary movements around the world.

Despite the imperial realities of this system, there was an overwhelming tendency within the United States and its industrial allies to deny the existence of imperialism altogether. Instead, these nations were merely economically and technologically advanced democracies who sought to protect ‘freedom’ and ‘democracy’ around the world in a largely ideological confrontation with the Soviet Union, which presented itself as the image of socialism and communism in a struggle against the capitalist imperial powers of the West. The Soviet Union’s influence was dominant in Eastern Europe, with a few close allies scattered across the Middle East, Africa and Latin America. The United States and its Western allies, however, were the dominant powers across much of the rest of the Middle East, Asia, Africa and Latin America. The only real sense in which the Soviet Union presented a challenge for the United States was in its military and nuclear capabilities. This was the period known as the ‘Cold War’, though despite its confrontational rhetoric dividing East and West, communist states from capitalist democracies, it was largely a struggle waged against the rest of the world, the ‘Third World’, otherwise known as the developing world or ‘Global South’. It was in the poor, colonized nations and regions of the world where the majority of the world’s resources were located, and thus, where the Western imperial powers needed to maintain control.

While the United States rebuilt Germany and Japan into economic locomotives, becoming the second and third richest countries in the world, American economic power experienced a relative decline. This created strong allies for the United States, and while they remained militarily dependent upon their imperial patron, their growing economic power gave them increased leverage. With their increased economic power came increased potential to act independently of the U.S. and other rich nations. Competition between the great powers increased during the same period that newly independent nations of the developing world were increasingly uniting in opposition to a Western-dominated world order.

On May 1, 1974, the vast majority of the world’s nations voted in favour of the U.N. Declaration on the Establishment of a New International Economic Order (NIEO), proclaiming that “the greatest and most significant achievement during the last decades has been the independence from colonial and alien domination of a large number of peoples and nations which has enabled them to become members of the community of free people.” Among the ‘principles’ adopted in forming the NIEO were “equality of States, self-determination of all peoples,” and the outlawing of war, seeking “the broadest co-operation” of all nations of the world in banishing the “prevailing disparities” and securing “prosperity for all.”[5]

Each nation of the world would have the right “to adopt the economic and social system that it deems the most appropriate for its own development,” and establish control over their own natural resources. The people who continued to live under colonial domination, racial oppression and foreign occupation had a right “to achieve their liberation and the regain effective control over their natural resources and economic activities.” In 1974, this would include Israeli-occupied Palestine, South African apartheid, and U.S.-occupied Vietnam. The last line in the document stated that the Declaration should “be one of the most important bases of economic relations between all peoples and all nations.”[6]

But Henry Kissinger had other plans. As Secretary of State and National Security Adviser, Kissinger was the chief imperial strategist in the United States, and remains one of the most influential foreign policy strategists in the nearly four decades since he left office. Kissinger’s “trick” to use economics in building a “world political structure” would largely be pursued through the finance ministries, central banks and international organizations (such as the IMF and World Bank) which are controlled by the rich and powerful nations. In the face of a growing threat, the rich nations banded together in various forums, conferences and diplomatic gatherings, the most notable of which came to be known as the Group of Seven, bringing together the U.S., Germany, Japan, the United Kingdom, France, Italy and Canada. Through these various institutions and initiatives, a “world political structure” would be incrementally constructed as the Empire of Economics.

A Family Affair

Empires don’t just happen; they are constructed, protected, expanded and destroyed. Empires need imperialists, even if they don’t refer to themselves as such. In the Empire of Economics, the imperialists are a diverse group, including the obvious presidents, prime ministers, chancellors and other heads of state; foreign, military and intelligence officials and ministries; finance ministers, central bankers and the heads of international organizations; the large banks, corporations and institutions that control the world’s wealth and resources, and the powerful individual oligarchs and family dynasties that lie behind these institutions.

As with most empires through history, the central unit of power is often that of a ‘family’, be it royal, financial, corporate or crime. After all, the first institution into which people are born and raised is very often that of the ‘family unit’. Power becomes hereditary, passed down through generations of children raised to take the place of their fathers and mothers in expanding the influence and protecting the legacy of the family. As with any imperial – or dynastic – family structures, they are plagued with rivalries, power struggles, tragedies, divisions and declines. The modern imperial family in the Empire of Economics – emanating from the vast industrial, corporate and banking fortunes established over past centuries – is no exception to the drama and decadence of earlier imperial dynasties.

Every nation has their dynasties, some better known than others. In the United States, over the past century, several names have become synonymous with wealth, power and prestige: Vanderbilt, Carnegie, Morgan, Harriman, Astor and Rockefeller. In 2006, roughly a third of the Fortune 500 companies (that is, the largest corporations in America) were family-run businesses, often performing better than ‘professionally’ managed companies. Among them is one of the largest corporations in the world, Wal-Mart, run and largely owned by the Walton family.[7] In 2010, six of the top ten richest individuals in the United States had inherited wealth, meaning that the richest of the rich in America were not self-made billionaires, but members of wealthy dynasties.[8]

Rich families are often able to preserve their dynastic wealth through a family ‘trust’, which allow the super-rich to provide for future generations of the family largely free of taxes and outside claims. The proliferation of family trusts has led to what one commentator in the New York Times referred to as “an American aristocracy.”[9] Perhaps the most recognizable family trust – and most ‘royal’ of the American dynasties – is that of the Rockefeller family. In the 19th century, John D. Rockefeller amassed a vast fortune monopolizing the oil industry into Standard Oil. In the early 20th century, the company was broken up by the government into multiple smaller companies, some of which are known today as Exxon Mobil and Chevron, among others. The Rockefeller fortune expanded into other industries and banking, and with that came an increased role in founding universities, foundations and think tanks, which were central to the process of generating the institutional and ideological foundations for American imperialism in the 20th century.

The patriarch of the family today, David Rockefeller, is currently in his 100th year. On the occasion of his 90th birthday in 2005, then-President of the World Bank, James Wolfensohn, spoke at the Council on Foreign Relations, where he said, “it’s fair to say that there has been no other single family influence greater than the Rockefeller’s in the whole issue of globalization.”[10]

As of 2014, Rockefeller Financial Services, the family investment company, held over $100 million in investments in several large American and foreign corporations, including JPMorgan Chase, Chevron, Microsoft, Oracle, Merck & Co., TD Bank, and Wells Fargo. Rockefeller Financial also maintains significant holdings in Honeywell International, Capital One Financial Corporation, Google, Exxon Mobil, Comcast, eBay, Wal-Mart, VISA, and Royal Dutch Shell, BP, IBM, McGraw Hill Financial, PepsiCo, McDonald’s, UPS, General Electric, Ford Motor Company, Apple, Intel, Boeing, Pfizer, The Walt Disney Company, Coca-Cola, Halliburton, U.S. Bancorp, Verizon and Goldman Sachs, among many others.[11]

Not only does the Rockefeller family office invest in major banks and corporations (on behalf of the family and its clients), but some major banks have also invested in the family office itself. In 2008, one of France’s largest banks, Société Générale, purchased a 37% stake in Rockefeller & Co. In 2012, that stake was sold to another major financial dynasty, the Rothschilds, who purchased it through RIT Capital Partners, the investment arm of the London branch of the Rothschild family, overseen by Lord Jacob Rothschild. As Barron’s magazine noted at the time, the union of these financial dynasties “should provide some valuable marketing opportunities” in which “new wealth” around the world would want “to tap the joint expertise of these experienced families that have managed to keep their heads down and their assets intact over several generations and right through the upheavals of history.”[12]

The Rothschild banking dynasty, which has its roots in late 18th century Europe, had established several branches of the family spread throughout major European nations and capitals, with two of the most prominent being the London and Paris arms. In 2012, the French and British Rothschild banks were planning to merge their assets into a single entity, under the name of Paris Orléans, headed by David de Rothschild. Upon the announcement of the merger, David de Rothschild explained that its purpose was to “allow the bank to better meet the requirements of globalization… while ensuring my family’s control over the long term.”[13] David, one of the richest Rothschilds today, noted in a 2010 interview with Ha’aretz that as a member of the Rothschild family, “We have an obligation to continue the dynasty.”[14]

The Rothschilds have a long history, marred with tragedies and rivalries so common to historical dynastic clans. In the 1990s, as the French and British branches of the family were increasing their cooperation under the leadership of Baron David de Rothschild and Sir Evelyn de Rothschild, respectively, Sir Evelyn commented that, “The first important strength of the family is unity.” Evelyn viewed Jacob Rothschild – another member of the British family branch – as a potential rival in control over the British bank, N.M. Rothschild, but Jacob went off to found RIT Capital Partners. Jacob’s half-brother, Amschel Rothschild, was pressured by his father to join the family business, despite his lack of interest and talent for it. Shortly after the death of his mother in 1996, Amschel attended a business meeting in Paris, after which he went to his hotel room and hung himself at the age of 41. With his death, a crisis was seen in the future of the family dynasty, which prompted the closer connections between the British and French branches.[15]

Sir Evelyn de Rothschild and his wife, Lady Lynn Forester de Rothschild (an American), count two prominent dynasties among their close friends: the Clintons and the British Royal Family. Lynn has long-standing ties to the Clintons, and considers Hillary to be “the woman she most admires,” while Sir Evelyn served as an usher at Queen Elizabeth II’s wedding. The couple spends occasional weekends with the Queen at Windsor Castle, and would also be frequent guests at the White House during the Clinton administration.[16]

In Italy, the Agnelli family – presided over today by the young patriarch, John Elkann – has been considered Italian royalty for the past century. The previous patriarch, Giovanni (‘Gianni’) Agnelli, ruled the family empire from the 1960s until his death in the early 2000s. The Agnelli empire controlled the large auto-company Fiat, as well as managing a wide array of companies and investments “in shipping, oil refining, armaments, banking, insurance, retailing and manufacturing.”[17] When the Soviet leader, Nikita Khrushchev, visited Italy, he singled out Gianni in a room filled with several Italian cabinet ministers and took the patriarch aside. “I want to talk to you,” said Khrushchev, “because you will always be in power.” The Soviet leader signaled to the cabinet ministers, adding, “That lot will never do more than just come and go.”[18] By the late 1990s, the Fiat group was the largest employer in Italy, accounting for roughly 5 percent of the country’s gross national product (GNP), and, when combined with the other family’s holdings, the Agnelli family controlled roughly a quarter of the entire capitalization of the Milan stock market.[19]

The Wallenberg family has dominated banking and industry in Sweden for over 200 years.[20] In the mid-1990s, the New York Times referred to the Wallenbergs as “one of the most powerful business families in the world” and “Sweden’s answer to the Rockefellers.”[21] For the post-war period, the business was under the leadership of Marcus Wallenberg Jr., who died in 1982 and had established “an industrial and financial empire of unprecedented scope,” with the family having controlling or influential shares in half of Sweden’s largest corporations, including Electrolux, L.M. Ericsson, Saab, and the Skandinaviska Enskilda Bank (SEB), one of Sweden’s largest multinational banks. By the mid-1980s, the family’s business empire accounted for roughly 30 percent of Sweden’s gross national product.[22]

By the mid-1990s, the Wallenberg empire controlled companies accounting for 40 percent of the Swedish stock market, just as the fifth generation of the family was taking over the reins. Jacob and his cousin, Marcus Wallenberg, were to take over the business from Jacob’s father, Peter, determined on “making the empire a global one.” The family’s holding company, Investor AB, was valued at $6.4 billion, which was in turn owned by a foundation trust controlled by the Wallenberg family.[23] As The Economist noted in 2006, “There is little that happens in Swedish business that does not involve the Wallenbergs,” with one prominent Swedish hedge fund manager commenting, “They are a bit like royalty.”[24] Jacob Wallenberg told the Financial Times in 2014 that, “I think our family is very strong on tradition, it is very strong on responsibility, it is very strong on nation, and I should say family.”[25]

In Canada, a quiet dynasty rules behind the scenes, with “undeniable” influence on provincial and federal politics, according to former U.S. Ambassador to Canada David Jacobson, who discussed the Desmarais family in a diplomatic cable leaked by Wikileaks.[26] The family’s economic empire goes by the name Power Corporation, based in the French-speaking province of Quebec and the city of Montreal. Through its various subsidiaries and shareholdings, the corporate and financial influence of the family reaches to all significant sectors of corporate Canada, as well as Europe, Asia and the United States.

The family was presided over by Paul Desmarais, Sr. from the time he began the business in the 1950s and 60s until his death in 2013, at which time the family empire was passed on to his two sons, Paul, Jr. and André Desmarais. As the Globe & Mail reported upon the patriarch’s death in 2013, “he knew and influenced, in small ways or large, every Canadian prime minister and Quebec premier over the past five decades.” Desmarais helped Prime Minister Pierre Trudeau open relations with China in the 1970s, and established the Canada China Business Council in 1978. Prime Ministers Brian Mulroney, Jean Chrétien and Paul Martin also maintained very close connections with Desmarais and the Power Corp. empire. Jean Chrétien’s daughter, France Chrétien, even married Paul’s son, André. Paul Martin worked for Desmarais at Power Corp. for 13 years before entering politics, eventually becoming finance minister and Prime Minister. Brian Mulroney, a close friend for nearly five decades, said of Desmarais, “I loved him like a brother… He was one of the most significant players in Canadian economic history.”[27]

The Wall Street Journal referred to Desmarais as “one of Canada’s wealthiest and most powerful businessmen” who “was closely involved in the nation’s politics.” Canada’s current Prime Minister Stephen Harper praised Desmarais for his “leadership, integrity, global vision, and profound attachment to his country.” Among the patriarch’s friends were former U.S. President Bill Clinton and former French President Nicolas Sarkozy.[28]

Asian nations are not to be outdone, with long traditions and new manifestations for family rule with powerful dynasties in the political and economic sphere, as well as a host of monarchs. As The Australian reported in 2014, “the big family business in Asia today is not running companies, but controlling countries,” noting that apart from the obvious in North Korea, many of Asia’s nations were “permeated with political leaderships that keep governance in the family.” The newly installed Chinese President, Xi Jinping, was a ‘princeling’ – a child of the Communist Party founders and bosses – whose father was a former Vice Premier. Japan’s prime minister, Shinzo Abe, comes from a prominent political family. His grandfather was a Member of Parliament, his father was a foreign minister, and his mother’s father was a former Prime Minister. The President of Korea, Park Geun-hye, was the daughter of a previous president.[29]

This pattern was repeated in the Philippines, Indonesia, Malaysia, Thailand, Myanmar, Singapore, Bangladesh, India, and Sri Lanka, their own versions of names like Kennedy, Bush and Clinton in the United States. An associate professor at the University of Queensland, David Martin Jones, commented, “The rise of dynasticism within democracy is little understood, and fits with a loss of popular support for mainstream parties, while these dynastic figures fit with the media/celebrity culture and spin that has undermined politics as a mode of persuasion.”[30]

Japan was, for many years, the world’s second largest economy after the United States. Today, it stands in third place, with China picking up the mantle at second. China began its economic ‘opening’ in 1978 under the leadership of Party leader Deng Xiaoping. As the world’s most populous nation increasingly embraced Western forms of ‘capitalism’, the Communist Party leadership which dominated the country acted as patrons and subsequently profiteers of China’s economic development. The highly efficient mixture of a single-party technocratic dictatorship and state-capitalism led to rapid economic growth and immense riches being accumulated by the nation’s new oligarchy. The princelings have become a rich and powerful class, using their political contacts to study at prestigious schools in Europe and America, taking control of large businesses inside China and rising up the Party apparatus.[31] As Bloomberg reported, in China, “wealth and influence is concentrated in the hands of as few as 14 and as many as several hundred families.”[32]

In Turkey, two families largely dominate the economy, Koc and Sabanci, having reached their third generations with interests in banking, energy, automobiles, retail and other markets. Together, Koc Holding and Sabanci Holding – and their various subsidiaries – “make up more than a quarter of the market capitalization of the Istanbul stock market.” The U.S.-based credit ratings agency, Standard & Poor’s, gave Koc Holding a higher credit rating than Turkey.[33]

In another ‘emerging market’ economy, South Africa, one family reigns supreme: Oppenheimer. Harry F. Oppenheimer, who died in 2000, was known as the “king of diamonds,” with an empire controlling most of South Africa’s diamonds, gold, uranium and copper, “wielding extraordinary power over some of the world’s strategic metals and minerals.” Through a complex web of corporate subsidiaries and shareholdings, the Oppenheimer family controlled the supply of the world’s diamonds through their monopoly of De Beers, which also held “vast holdings in banking, real estate, pulp and paper, bricks and pipe, coal and potash, locomotives and beer.” As head of Anglo American Corporation, Harry Oppenheimer spent twenty-five years as “the most powerful figure in his country’s economy as well as one of the richest men in the world,” noted the New York Times.[34]

India, the world’s largest ‘democracy,’ second most populous country and one of the fastest-growing economies, is yet another example of a family business. Politically, India has long been dominated by the Gandhi and Nehru families, but behind the scenes, the families of old and new industrialists dominate the economy. Among India’s largest and most respected conglomerates is the Tata family, which has run the Tata Group for nearly 150 years. Ratan Tata took over the Tata Group in 1991, with its more than 100 companies operating in everything from steel to software. The Tata family had run the company for over a century, but was based almost entirely in India, which began opening its economy up to the West the same year Ratan took over the company. He turned the Tata Group into a global conglomerate, acquiring major British companies, including Tetley Tea, Jaguar Land Rover and Corus, a steelmaker. Ratan became, in the words of the Financial Times, “a pioneer in the country’s move toward globalization,” and both he and the Group “came to embody India’s own emergence as a world economic player over the course of the past decade.”[35]

Germany, the second largest exporter in the world (after China) and the fourth largest economy in the world (after the U.S., China and Japan) is also no stranger to family dynasties and business empires. According to a 2012 study cited by Forbes, roughly 43% of all German exports in 2011 were accounted for by the country’s 4,400 largest family-owned firms. Many of the large companies that are not directly owned by families are often owned by foundations, which are in turn owned by prominent families.[36] The archetypal head of a German business empire, the Financial Times explained in 2007, is “very wealthy but low-profile and frugal.” In other words, they’re rich, cheap and stay behind the scenes.[37] Some of Germany’s wealthiest families and individuals stay so far out of the spotlight that there are few known photographs of them in existence. Susanne Klatten, daughter of the German industrialist Herbert Quandt, who built the BMW empire, is the 44th richest person in the world, with a very low public profile, even spending parts of her life operating under false names.[38]

One reason for the publicity-shy nature of Germany’s corporate, industrial and financial elite could be due to the fact that many of them date back to Germany’s industrialization and prospered immensely through the Nazi era, where they frequently collaborated with Hitler’s murderous regime. Just as the Japanese industries and families of the imperial age were re-established to manage Japan’s post-war industrialization, so too was German industry rebranded after the Nazi era to lead Germany’s reindustrialization and rapid economic growth. The Quandt family behind BMW had collaborated heavily with Nazi Germany, with one German historian, Joachim Scholtyseck, noting, “The Quandts were linked inseparably with the crimes of the Nazis,” using some 50,000 concentration camp slave laborers at the company’s factories, building weapons for the Nazi war machine. “The family patriarch was part of the regime,” Scholtyseck added. The Quandt family also took over dozens of businesses which were seized from Jewish families.[39]

Since the early 1970s, the Arab dictatorships – virtually all run by political dynasties – have accumulated massive wealth and influence, and have invested that wealth into Western banks and corporations. Saudi Arabia is the best example, but the Gulf monarchs include the families that run the United Arab Emirates (UAE), Bahrain, Qatar and Kuwait. One such individual who has made a name for himself in the world of finance is the Saudi Prince Alwaleed bin Talal bin Abdulaziz Al Saud, who has been referred to as the “Arabian Warren Buffett,” having become one of the largest shareholders in Citicorp by the early 1990s. In 1999, the Economist noted that while the Saudi royals were “secretive, venal and backward,” Prince Alwaleed was “open, intelligent and successful.”[40]

As of 2013, Prince Alwaleed bin Talal was worth an estimated $27 billion, and was the second largest shareholder in the global media conglomerate, News Corp. (after the principal shareholders and owners, the Murdoch family), and is also a stockholder in Apple, TimeWarner, Citigroup, Motorola, Saks, AOL, eBay and EuroDisney, and even owns part of Twitter. Further, the Prince owns several luxury hotels in London, New York and elsewhere, partnering up with major banks and other billionaires like Bill Gates. The Prince has a fleet of some 300 cars, a 280-foot yacht which was originally built for a world famous Saudi arms dealer (Adnan Khashoggi), and a fleet of jets, one of which includes a golden throne. He became the subject of minor scandal when it was reported that at his desert encampment in Saudi Arabia, one of the Prince’s past-times is, literally, “dwarf-tossing.” But the Prince’s defenders were quick to reassure an American audience of “his great beneficence,” noting that dwarves were “outcasts” in the Saudi Kingdom, and so the Prince simply hired them as jesters, providing them with “a work ethic,” which included having them “dive for $100 bills in bonfires.”[41]

Russia and several countries in Eastern Europe (notably Ukraine) are dominated by a handful of oligarchs, who concentrated control of resources and the economy in their hands following the collapse of the Soviet Union.

There are also individual oligarchs all across the world, and if they pass their fortunes on to their children they could establish new financial and corporate dynasties. One example in the United States is Warren Buffett, a billionaire investor who founded Berkshire Hathaway, which is a major shareholder in American Express, Coca-Cola, Exxon Mobil, Goldman Sachs, IBM, Moody’s Corporation, Munich Re, Procter & Gamble, U.S. Bancorp, Wal-Mart and Wells Fargo, among others.[42] Buffet’s friend, fellow billionaire oligarch Bill Gates, is also a major shareholder in Berkshire Hathaway, through his own holding company, Cascade Investment.[43]

These are just a few of the world’s major dynasties and oligarchs in the Empire of Economics, cooperating and competing with one another in what could be interpreted as globalization’s Game of Thrones. Individually, these family dynasties and oligarchs are able to exert significant and varying degrees of control over their respective national economies. Collectively, they wield immense global financial and economic power, largely unknown to outsiders. As banks and corporations became increasingly global in scope and size, so too did the interests of the individuals and families behind many of the world’s major companies. The world’s top banks and corporations, in turn, collectively own each other through shareholdings, as well as much of the rest of the network of global corporations.

The Swiss Federal Institute of Technology in Zurich published a study in 2011 of the ownership structure of the world’s largest 43,000 multinational corporations. The researchers traced the shareholdings of the companies to a small network ‘core’ of the largest 1,318 corporations, which collectively accounted for roughly 80 percent of the global revenues of the entire sample of 43,000 corporations. Within the ‘core’ is what the researchers called the ‘super-entity’, a grouping of roughly 147 closely knit companies – mostly banks and insurance companies – who own each other and collectively control 40 percent of the entire network of 43,000 companies.[44] Thus, a global economic order in which less than 150 of the world’s top banks and financial institutions control not only each other but a large percentage of the world’s remaining corporations can hardly be said to be a “free market” of competition. In truth, the “super-entity” more closely resembles a cartel, the global financial mafia.

Among the top 50 companies of the ‘super-entity’ (as of 2008), were: Barclays, Capital Group Companies, FMR Corporation, AXA, State Street Corporation, JPMorgan Chase, UBS, Deutsche Bank, Credit Suisse, Bank of New York Mellon, Goldman Sachs, Morgan Stanley, Société Générale, Bank of America, Lloyds TSB, ING Group and BNP Paribas, among others.[45] As of late 2014, the list of top institutions within the super-entity has changed slightly, with some previous banks merging or collapsing as a result of the financial crisis, and with the rise of asset management firms such as BlackRock.

BlackRock is the world’s largest asset management company, with roughly $4 trillion of assets under management, standing as the single largest shareholder in one out of every five corporations in the United States, owning at least 5 percent of almost half of all corporations in the country. As the New York Times noted in 2013, BlackRock has “tremendous influence.”[46] As the Financial Times noted in 2012, when one includes the assets which BlackRock advises on (on top of managing), the total sum that the company monitors amounts to roughly $12 trillion, almost the same size as the entire U.S. economy, putting the company “in an extraordinarily influential position.”[47] Larry Fink, the CEO of BlackRock who started his career as “a prince of Wall Street,” rose to what the Financial Times called “the pinnacle of US finance,” where he “slips in and out of the offices of the world’s financial and political elite with ease.” Fink and BlackRock have extensive influence with the major American and European banks and corporations, as well as sovereign wealth funds in the Arab world and Asia.[48]

Fink turned BlackRock from a virtually unknown entity in 2008 to “a global colossus” with its $13.5 billion purchase of Barclays Global Investors in 2009. Vanity Fair referred to Fink in 2010 as “the leading member of the country’s financial oligarchy.” Throughout the financial crisis, Fink and BlackRock played a role as key adviser to all of Wall Street’s top CEOs, as well as the heads of the Federal Reserve System, Federal Reserve Bank of New York and the U.S. Treasury Department, playing a central role in the major bailouts and mergers that marked the crisis. One senior bank official referred to BlackRock as “almost a shadow government.” Another bank executive commented, “Larry has always wanted to be important… And now that he’s more important than he ever dreamed of, he’s loving it.” Fink also maintained very close ties to the two U.S. Treasury Secretaries who served tenures during the financial crisis, Hank Paulson (former CEO of Goldman Sachs) and Timothy Geithner (former President of the New York Fed), whom Fink referred to as “two of our best Treasury secretaries.”[49]

This interconnected and interdependent network of the global financial mafia is in turn controlled by the shareholdings of individual oligarchs and family dynasties. After all, most mafias are ultimately family businesses, and the world of finance is no exception. But there are other key players as well, including sovereign wealth funds (state-run investment companies), central banks, and other investment vehicles. The use of the term ‘mafia’ or Mafiocracy is not simply rhetorical, as the banks and corporations which sit at the heart of this network – the “super-entity” – are repeatedly caught, fined and slapped on the wrist for excessive criminal behavior, including massive fraud and the formation of illegal cartels designed to manipulate prices and increase profits.

Nowhere is this more obvious than in the financial sector, plagued by multiple scandals since the financial crisis, including the role of banks in creating the crisis in the first place. In addition to that, however, a small network of banks has been found to function as a criminal cartel in manipulating interest rates (specifically, the LIBOR rate) and the foreign exchange (forex) market. In addition, the world’s major banks also reap immense profits (and commit grave crimes) through the laundering of billions of dollars in drug money, terrorist financing and providing other services to organized crime.[50] And this is to say nothing of the economic and financial support that corporations and banks provide for dictators, tyrants, mass murderers, war mongering and state violence, environmental degradation and the physical plundering of the planet for short-term profit.

But the global financial mafia – and the oligarchs and dynasties who sit at its core – cannot wield significant influence without the political legitimacy that comes with state power. Successful financial dynasties (with the Rockefellers as perhaps the best example) establish complex networks of influence, building institutions and supporting ideologies that in turn influence the state and shape the minds and careers of those who rise through it. The Rockefeller family established the University of Chicago and have long been patrons of Harvard. They created philanthropic foundations which provided strategic funding to universities, research centers, think tanks and international forums, having a lasting impact on the shaping of the social sciences (notably Political Science and Economics). The Rockefeller name has made its imprint on some of the most influential American and international think tanks and forums, including the Council on Foreign Relations, the Bilderberg meetings and the Trilateral Commission, which was founded by David Rockefeller in 1973 in an effort to encourage cooperation between the ‘trilateral’ regions of North America, Western Europe and Japan.

The effect of these networks – which are replicated to varying degrees by members of the global financial mafia in their respective nations – was to create a new elite class of technocrats and professionals, strategists and policymakers whose ideologies and interests aligned with that of the Mafiocracy. For dynasties and oligarchs to exert influence over economic and political policies and society at large, they need much more than a large economic share of corporate, banking and stock market capitalization. More than anything, they need access to policymakers: presidents, prime ministers, foreign ministers, finance ministers, central bankers, technocrats and the leaders of international organizations.

In short, they need to engage and integrate actively with the world of economic and financial diplomacy, interacting and building relationships with the policymakers of the rich and powerful nations, those who have the political authority necessary to implement policies that affect the Mafiocracy. Together, policy-makers, technocrats, financial diplomats and the Mafiocracy of oligarchs and dynasties are the central players in the game of global power politics, and are the key architects in the system of global economic and financial governance, the Empire of Economics.

Machiavelli to the Mafiocracy

Dynastic control of corporations and banks, while supporting long-term influence and interests, has obvious downsides, since talent and skills are not hereditary, and thus, there is no guarantee that family members and descendants will be as savvy or effective in their management of the family business. For this reason, many oligarchs and dynasties turn to individuals outside of the family to manage their companies, advise on their wealth management strategies, and run the day-to-day business of the family empire. Such advisers, confidantes and interlocutors exist in the world of financial dynasties well beyond the scope of the family business, but help to manage the family’s social and political interests and relationships as well.

Some five hundred years ago, Niccolo Machiavelli advised Popes, princes and other rulers, writing The Prince as a dedication to the first modern financial dynasty, the Medici family of Florence. If Machiavelli were writing The Prince today, he would likely still dedicate it to the major family dynasties, Rockefeller, Rothschild, Wallenberg or perhaps the Agnelli family of Italy and other modern Medicis. With few exceptions, however, the modern imperial families of finance do not directly control the state or political apparatus as they did in past centuries. So for the Machiavellis of the modern era, they must establish close relationships not simply with the top families, but the top political authorities as well.

They act as ‘friends’ and networking agents to the major dynasties while sitting as advisers and cabinet ministers to the world’s major presidents and prime ministers. They run consulting firms, outsourcing their strategic insight and networks of contacts to the highest bidder. They sit on the boards of corporations, think tanks and foundations, fostering the development of future generations of advisers and strategists, regularly appearing in the media to voice their own “independent” analysis of world events and strategic advice. They are the Machiavellis to the global Mafiocracy, moving in and out of government but always remaining in the upper echelons of the ruling institutions. They attend international conferences, forums, professional and social events. They are essential to the global Mafiocracy, with extensive experience in the highest positions of power, understanding how state power is wielded and shaped, they know the key policy-makers at home and abroad, and are able to open doors with their recognizable names, yielding endless benefits to their dynastic patrons and friends.

Perhaps the most recognizable and “respected” consigliere to the Mafiocracy is none other than Henry Kissinger. A German émigré to the United States in the late 1930s, Kissinger became a noted academic at Harvard University, where he became acquainted with the politics of academic life, preparing him “for world politics.” With the help of his academic mentors, he established a seminar and an academic journal which effectively expanded his network of contacts with other young leaders in government, business, media and finance.[51]

In the mid-1950s, Kissinger was invited to join the Council on Foreign Relations (CFR), the premier U.S.-based think tank focusing on foreign policy, long considered a type of training ground (or rite of passage) for any top future foreign policy officials in the United States government. The Council, founded in 1921, also happened to be an institution which was dominated by Rockefeller men and money. Kissinger was appointed as a staff director of a study group on nuclear weapons and foreign policy on behalf of the Council, out of which he wrote a book that advocated for “limited nuclear war” with the Soviet Union. From there, Kissinger was appointed as the director of a Special Studies Project run by the Rockefeller Brothers Fund. At this time, Kissinger developed a close relationship with Nelson Rockefeller, who would become the young Henry’s patron.[52] Kissinger later recalled first meeting Nelson Rockefeller, noting that he and the other young ‘experts’ who formed a study group under Rockefeller’s patronage were “intoxicated by the proximity of power” and sought to impress Nelson in offering “tactical advice on how to manipulate events.”[53]

Kissinger received tenure at Harvard in 1959, and served as a part-time consultant to Nelson Rockefeller, who became the Governor of New York State in 1959 (a position he would hold until 1973). He did part-time consulting with the Kennedy administration in the early 1960s, and with the Lyndon Johnson administration that followed Kennedy’s assassination. When Richard Nixon became president in 1969, Henry Kissinger joined the administration as National Security Adviser, and took on the additional role as Secretary of State in 1973. When Kissinger joined the Nixon administration, Nelson Rockefeller gave Henry a ‘gift’ of $50,000.[54] When Nixon resigned in disgrace in August of 1974, replaced by Gerald Ford, Kissinger remained as National Security Adviser until 1975 and as Secretary of State until the end of the Ford administration in early 1977. Nelson Rockefeller, who had long sought the presidency, was appointed Vice President in the Ford administration.

During these years, Henry Kissinger was the most influential figure shaping U.S. foreign policy, and he did so with a ruthlessly pragmatic understanding of power and its uses. He oversaw the war in Vietnam, the illegal bombing of Cambodia, killing several million civilians during the Nixon administration alone. In addition to his many war crimes in Indochina (for which he won the Nobel Peace Prize in 1973), Kissinger supported Pakistan’s genocide in Bangladesh, killing several million, after which he congratulated the dictator of Pakistan for his “delicacy and tact.” He was also central in the CIA coup to overthrow the democratically elected government of Chile in 1973, of which he said, “The issues are much too important for the Chilean voters to be left to decide for themselves.” The result was the establishment of a U.S.-supported dictator, Augusto Pinochet, who murdered many thousands and tortured many tens of thousands more.[55]

Kissinger also supported the murderous Argentine military regime which killed tens of thousands, along with the Indonesian dictator, Suharto, in his genocide in East Timor, killing several hundred thousand civilians. He supported the Turkish invasion of Cyprus, and the war against the government of Angola, which ultimately killed millions in southern Africa. These are but a few examples of Kissinger’s influence on foreign policy, resulting in the deaths of many millions of people around the world, in addition to the displacement, torture and suffering of many millions of others. With the blood of so many innocent people on his hands, Kissinger had acquired the status of a highly respected “statesman.”[56]

When Kissinger left the government, he did not lose much influence. He remained a central figure within the foreign policy establishment. The ‘Establishment’, as it was known to many, had consisted of prominent Wall Street bankers and lawyers who effectively monopolized the key foreign-policy positions within the government in the decades leading up to and following World War II. By the 1970s, the ‘Establishment’ had given way to what Leslie Gelb (currently a president emeritus of the Council on Foreign Relations) called the “foreign policy community,” which functions as “an aristocracy of professionals.” This community consisted of roughly 300 professors, lawyers, businessmen, think tank ‘experts’, foundation officials and journalists (though today it is likely a far greater number). Whereas previous leaders in the foreign policy establishment were primarily bankers who took time off to manage foreign policy, members of the community tend to focus on foreign policy as “a full-time job.” The community had “first infiltrated, then subsumed the older and familiar establishment,” and by the 1970s it was “monopolizing the top foreign and national security posts in any administration.”[57]

Gelb, writing in the New York Times, noted that members of the earlier Establishment “were insiders, who knew the right persons to telephone, meeting quietly, avoiding publicity.” The Community, on the other hand, “operate far more openly,” noting that, “unlike the Rockefellers, they cannot pick up the phone and speak to the President. They talk to the President indirectly, through the articles they write in journals such as Foreign Affairs and Foreign Policy or in the op-ed pages of [the New York Times] and other newspapers, or in testimony to Congressional committees, through attending conferences with high Government officials at the Brookings Institution in Washington or the Council on Foreign Relations in New York.” Citing Kissinger as one of several examples, Gelb wrote that “the professors had moved to the center of power.” The members of the foreign policy community, explained Gelb, “sometimes actually make the decisions, usually define what is to be debated and invariably manage the resulting policies.”[58]

This foreign policy community links together major universities (particularly the Ivy League schools), philanthropic foundations (Rockefeller, Ford, Carnegie), think tanks, international conferences and forums. Among the most important think tanks in the foreign policy community are the Council on Foreign Relations, the Brookings Institution and the Center for Strategic and International Studies (CSIS), among many others. These think tanks are typically dominated by boards and trustees who are former high level government officials, top corporate executives, bankers, university professors and chancellors, foundation officials, media barons, and of course, individual oligarchs and members of financial dynasties. In addition to major national think tanks, there are a host of international think tanks and forums that bring together the members of the global Mafiocracy with policy-makers and other influential individuals. The three most important and influential of these international forums are the Bilderberg Group, the Trilateral Commission and the World Economic Forum.

The Bilderberg meetings began in 1954 as a conference of high-ranking government officials, bankers, corporate executives, European royalty, media barons, military and intelligence chiefs, academics and think tank officials drawn almost exclusively from North American and Western European nations. The meetings take place once a year, drawing roughly 130 participants who meet for a long weekend in a four-star hotel to engage in off-the-record, secret discussions behind closed doors. The meetings are governed by a Steering Committee of roughly forty individuals who are responsible for inviting other participants from their respective nations. Families such as the Rockefellers, Rothschilds, Agnellis and Wallenbergs have long been represented at Bilderberg meetings.

The Trilateral Commission, which was founded by David Rockefeller, functions as an international think tank and series of conferences uniting the policy-oriented, political, academic, corporate and financial elites of Western Europe, North America and Japan (having expanded since its founding in 1973 to include more Asian nations, notably China and India). David Rockefeller still sits as honorary chairman of the Commission, which consists of roughly 350 members who hold a full membership meeting once yearly, while holding regional meetings separately, of the North America, European and Japanese/Asian groups respectively.

The annual meetings of the World Economic Forum (WEF) in Davos, Switzerland, bring together thousands of the world’s top corporate executives, bankers and financiers with leading heads of state, finance and trade ministers, central bankers and policymakers from dozens of the world’s largest economies; the heads of all major international organizations including the IMF, World Bank, World Trade Organization, Bank for International Settlements, UN, OECD and others, as well as hundreds of academics, economists, political scientists, journalists, cultural elites and occasional celebrities.

Henry Kissinger is a regular fixture at these various think tanks, forums and conferences. He currently sits as a trustee and counselor of the Center for Strategic and International Studies (CSIS), a member (and former board member) of the Council on Foreign Relations, a member of the Trilateral Commission, a participant in World Economic Forum meetings, and as a participant (and former Steering Committee member) of the Bilderberg Group.

After he left government in 1977, Kissinger remained an important figure in foreign policy and establishment circles, making hundreds of thousands of dollars per year as an author, lecturer, academic and consultant, notably for NBC and Goldman Sachs.[59] In 1982, Kissinger founded his own consulting firm, Kissinger Associates, which for a fee of roughly $250,000 per year, advises its clients on “strategic planning.” To help with the consultancy, Kissinger brought in his former deputy national security adviser in the Nixon administration, Brent Scowcroft, as well as a former British Foreign Secretary, Lord Carrington.[60]

Kissinger Associates was headquartered on the corner of Park Avenue and 52nd Street in New York City, located in the same office building as the First American Bank of New York and Chase Private Banking International. Among the client list for Kissinger’s firm are several big names, including H.J. Heinz, Arco, American Express, Shearson Lehman, as well as FIAT (Agnelli), Volvo, Fluor Corporation, International Energy Corporation, Midland Bank, and L.M. Ericsson of Sweden (controlled by the Wallenbergs). As the New York Times noted in 1986, “Kissinger and his associates are by all accounts the most successful of this new breed of former senior Government officials who have decided to advise big businesses rather than join them,” noting that Defense Secretaries, State Secretaries and Treasury Secretaries had overseen millions of people and enormous budgets with which most multinational conglomerates cannot compete, and thus, “big business is too small for many of the new generation of Government superstars.”[61]

As Kissinger himself explained, “I think that in the modern world, if you don’t understand the relationship between economics and politics, you cannot be a great statesman. You cannot do it with foreign policy and security knowledge alone.”[62] In 2002, Leslie Gelb, a top official at the Council on Foreign Relations, commented that, “Within the foreign policy world, and among many corporate CEOs, Henry Kissinger carries more weight than any senior individual in the world today.”[63]

Kissinger has long functioned as a glorified errand boy for the ruling global Mafiocracy. Among his close friends and associates are many of the world’s most powerful dynasties, including his original patrons, the Rockefellers, as well as the Agnelli family of Italy, the Rothschilds of Europe, the Oppenheimer family in South Africa, and a whole coterie of ruling elites in China. Sir Evelyn de Rothschild was introduced to his present wife, Lynn Forester, by their “mutual friend” Henry Kissinger at a 1998 meeting of the Bilderberg Group.[64] Of the late patriarch of Italy’s ruling family, Kissinger said that in “the last two decades of his life, no one was closer to me than Gianni Agnelli,” noting that they spoke on the phone roughly twice a week and would visit each other “every month or so.” Kissinger described Agnelli as “the uncrowned king of Italy” and a “powerful personality who was the most influential Italian of his era.”[65] Kissinger even helped to rebuild ties between the diamond and gold empire headed by Harry Oppenheimer and the South African president.[66]

Kissinger has known the many powerful leaders of China over the past four decades, since he led the diplomatic ‘opening’ of U.S. relations with China in the early 1970s. As he officially established relations with Mao Zedong’s China in 1973, David Rockefeller’s Chase Manhattan Bank became the first U.S. bank to get into the country since the Communists came to power in 1949. Chase Manhattan became the “correspondent” for the Bank of China in the United States, for the purposes of financing commerce. The deal was reached following a 10-day visit by Rockefeller to China in the summer of 1973.[67] Some four decades later, China would be the second largest economy in the world, governed by an elite new class of ‘Princelings’ and technocratic tyrants. China’s economic growth has increasingly translated in growing political power in the international arena. But behind the dry, technocratic exterior of Chinese politics lies a brutal world of factional power politics, in-fighting, scandal, corruption and a struggle for control.

China: Globalization’s Gangster State

Following Mao and Zhou Enlai, Deng Xiaoping would become China’s most powerful leader from 1979 until 1989. Henry Kissinger described Mao as “a prophet who was consumed by the objectives he had set,” and Zhou Enlai as a “most skillful diplomat.” But Deng Xiaoping, for Kissinger, was “a greater reformer,” adding, “I certainly met no other Chinese who had the vision and the courage to move China into the international system and… in instituting a market system.”[68]

Deng Xiaoping was first among the ‘Eight Immortals’ of modern China, and principal architect of modern China.[69] The Immortals were those who supported Deng Xiaoping’s leadership of the Communist Party, believing that only by “opening China to the outside world” would they be able to “raise living standards” and avoid “social upheaval that would threaten the Communist Party’s grip on power.” A Bloomberg special report on the influence of the descendants of the Eight Immortals noted that they ultimately “sowed the seeds of one of the biggest challenges to the Party’s authority,” by entrusting major state assets to their children, “many of whom became wealthy.” This marked “the beginning of a new elite class, now known as princelings.” Over the decades, the emergence and growth of the princeling class would increasingly fuel “public anger over unequal accumulation of wealth, unfair access to opportunity and exploitation of privilege – all at odds with the original aims of the communist revolution.”[70]

The Deng Xiaoping era lasted roughly from 1978 until 2012, when the first princeling came to take the highest seat of power in China, with the rise of Xi Jinping. Prior to that, Deng and the Eight Immortals “towered over China,” first through Deng’s rule, and then “through Deng’s hand-chosen successors, Jiang Zemin and Hu Jintao,” noted a special report in The Diplomat.[71] Deng Xiaoping’s China also saw the rapid rise of the factional backroom power politics that dominate the Chinese Communist Party, and by extension, the government and society. Deng articulated the strategy for China to take in its global rise: “hide your brightness; bide your time.”[72]

The Chinese state has always presented an image of itself to its domestic population and a foreign audience as one of being united with a well-oiled political system. But since the era of Deng, the Party system – which determines who rises to the top positions of power in the country – has been governed not by a visible and public structure, but by “back-room patronage and shadowy negotiations among party elders.” The “problem” with this system, suggested the New York Times in 2012, was that “the power of those elders have diminished with each generation,” noting that then-President and party chief, Hu Jintao, who ruled from 2003 until 2013, was “weaker than his predecessor, Jiang Zemin,” who had ruled China from 1989 until 2002, “who was much weaker than Mr. Deng,” who was paramount from 1978 until his death in the 1990s.[73]

In Chinese factional power politics, the top leaders and former top leaders establish their own networks of patronage, passing benefits and favors to others in exchange for various support, making deals, trades, negotiations and much deeper intrigues. These powerful factions occasionally go to battle with each other, orchestrating all sorts of technocratic coups (the removal of top officials loyal to one boss over the other).[74] The large party factions, headed by their respective party bosses (sitting and former top Chinese leaders) would hold conclaves and secret meetings in which they would negotiate and horse-trade over the appointments to be made to the top ruling body in China, the Politburo Standing Committee.[75]

In 2010, the two main party factions led by then-president Hu Jintao and former president Jiang Zemin decided upon a successor to be president of China, Xi Jinping, with Li Keqiang chosen to be the future prime minister, Hu’s first choice for president.[76] Xi Jinping, who was allied with the Jiang Zemin faction, was ultimately considered to be a compromise candidate between the major faction leaders.[77] Another fast-rising official in the Chinese state apparatus was Bo Xilai, allied with Jiang’s faction, and touted as a possible member of the next Politburo Standing Committee. Bo was viewed by many as “dangerous” and “capable of anything,” creating powerful enemies among top-level Chinese officials.[78]

Bo Xilai was well known both within China and internationally among ruling circles, having risen to the position of party boss in Chongqing City in central China. Under his leadership, Chongqing built strong ties to corporate America and he even won the endorsement of none other than Henry Kissinger, who met with Bo in 2011, after which Kissinger said, “I saw the vision for the future by the Chinese leaders.”[79]

Within a year, Bo Xilai would become the subject of a major scandal which provided a glimpse into the backroom power politics waged by China’s ruling elite and its influential factions and personalities. In a spectacular tale worthy of the palace intrigue of ancient imperial China, Bo went from rising star to serving a life sentence in prison. After making himself a powerful enemy in the form of then-Chinese president Hu Jintao, Bo and his police chief – and long-time confidante – Wang Lijun, became the targets of a quiet corruption investigation designed to prevent his rise to the Politburo Standing Committee.[80]

In January of 2012, Wang Lijun went to his patron, increasingly worried about his own future as the investigation clamped down, hoping to secure the protection of Bo. Instead, Bo decided to toss Wang to the wolves and save himself. Bo fired him from his official post and put a police tail on him. When Wang managed to elude his unwanted entourage, he fled to the American consulate in a nearby city where he asked for asylum, claiming his life was under threat and providing evidence that Bo Xilai’s wife, Gu Kailai, had murdered a British banker (and possible spy) with cyanide in a hotel room a few months before, which he subsequently helped cover up. Suddenly, the quiet backroom attempt to remove Bo as a threat to the Party leadership became a very public scandal revealing the gangster-state nature of China’s power politics.[81]

In a seemingly bizarre twist, the scandal even had repercussions in Canada, as Bo Xilai was “Canada’s closest ally in China’s power structure.” Specifically, Bo had close connections to Canada’s imperial family of finance, the Desmarais family of Montreal, who own Power Corporation. The Desmarais clan had close relations with Bo since the 1970s, when Bo’s father, the Chinese vice premier, Bo Yibo, established a connection with Paul Desmarais, Sr. As Bo’s power within China grew, so too did the market access of the Desmarais economic empire. Through the Desmarais network, Canada’s political elite also established close connections with Bo Xilai. Prime Minister Stephen Harper was one of the last foreign officials to have visited Bo before he was arrested on corruption charges. In fact, André Desmarais, son of Paul, Sr., was accompanied by his father-in-law, former Canadian Prime Minister Jean Chrétien, on a trip to China on behalf of the Canada China Business Council. A mere eight days after Bo’s wife murdered a British banker in a hotel room in Bo’s fiefdom of Chongqing, Bo Xilai smiled and shook the hands of Desmarais and Chrétien, greeting them “like old friends.”[82]

A Financial Times article from 2014 explained that many top Chinese leaders, including former vice-premier of finance and current Standing Committee member, Wang Qishan, are fans of the Netflix original show, House of Cards. The show depicts a politician (Frank Underwood) and his wife, who, through their back-room deals, secret machinations, lies, deception and even murder, are able to rapidly ascend through the ranks of political power in Washington, D.C., first as a top Congressional official making his way to become Vice President and ultimately, President.[83]

Kurt Campbell, writing in the Financial Times, noted that one possible reason for the popularity of shows like House of Cards among the Chinese leadership was that they may view the portrayal of politics in the show “as quintessentially American – perhaps even an accurate depiction of workings of U.S. government.” It was “widely believed” in China, he wrote, that “beneath the surface, America’s vaunted democracy is rife with injustice and corruption.” Not to be discounted, of course, was that the show also provided a parallel in the scandal surrounding Bo Xilai and his wife, Gu Kailai, with their rapid rise and dramatic downfall from the near-heights of Chinese political power. The scandal was “eerily reminiscent of the dirty political deeds perpetrated by Underwood in his quest for power.” Even U.S. President Barack Obama had commented that he was fascinated with the show, though he “confessed a pang of envy for the ‘efficiency’ with which things get done in the fictional Washington of its creation.”[84]

Indeed, House of Cards more closely resembles the realities of power politics exercised at the highest levels than is reflected in most other television and cinematic productions. While often criticized as being highly ‘cynical’ (much like Machiavelli’s The Prince), the truth is that it is a more accurate interpretation of a deeply cynical power structure. The Netflix show was an American adaptation of an earlier British television miniseries of the same name, which was itself based upon a series of books written by Michael Dobbs, a former adviser to Prime Minister Margaret Thatcher and chief of staff to the British Conservative Party. Dobbs was once dubbed “Westminster’s baby-faced hit man,” with the British press noting that many of his political enemies said that he was “as calculating and conceited as some of his fictional characters.”[85]

Dobbs, in fact, wrote the original book, House of Cards, following “a blazing row” with Margaret Thatcher, in which she delivered upon him “a verbal hand-bagging” and subsequently fired him. After that, Dobbs sat down to write his book, which was “inspired by the shenanigans he’d seen and been involved in.” In a recent interview, Dobbs told a journalist, “All of the wickedness you see on House of Cards, I’d seen or even been responsible for.”[86] In a 2015 interview with the Wall Street Journal, Dobbs, who is now a member of Britain’s House of Lords, said, “I don’t think it matters whether it’s in Westminster or Washington – it could be in Beijing or Moscow – because it’s the story about passions, ambitions, weaknesses and wickedness, which I think is universal and almost timeless.”[87]

It is a rarity for power to be accurately portrayed in art and cultural media. Its complexities can hardly be summarized in simple and short journalistic prose, and television news stands as an obscene testament to intellectual infantilism in modern society. Some 500 years ago, when Machiavelli was writing about the realities of power in his era, he could get away with a deliberate and direct approach since he was writing during a time where the vast majority of the population was illiterate, where those who would potentially read his text were the wealthy and powerful, those to whom it would be useful.

Over the past several centuries, with the spread of technology, education, mass communication and democracy, the global political world has become far more complex, with more players, interests, rivals and potential problems than ever before. As a corollary, the “passions, ambitions, weaknesses and wickedness” – as Dobbs described it – have become more global, impactful and entrenched. Whereas Machiavelli wrote about warring city-states, today we have competing continents and large economies, the global system of nation-states, banks and corporations. In addition, the public – the populations of nations and regions – have become literate, better educated, with more access to more information than ever before. They have become more active participants in their respective political systems than they were in past centuries and millennia.

At once, the tools of control and conquest are more advanced and efficient than ever, while the ability to exercise and justify the use of power politics and empire-building is at an historic low. The realities of mass culture and communication, largely a product of the 20th century, have changed the rhetoric and presentation of power in the modern world, though not necessarily the realities and priorities of power. The exercise of power has thus increasingly become coupled with and dependent upon the public use of vague, euphemistic, obscure and often incomprehensible language.

It is a language spoken and understood by those who are invested and involved with the world of high-powered politics, in which the key leaders and players must be able to speak publicly and purposefully in an effort to expand their interests, build their empires and play their games, but which also requires enough obscurity and evasion in order to ensure that the mass publics and populations of the world remain in the dark about the realities playing out behind the scenes. “Political language,” wrote George Orwell in a 1946 essay, “is designed to make lies sound truthful and murder respectable, and to give an appearance of solidity to pure wind.” In his essay, written two years prior to the publication of his famous book, 1984, Orwell explained some of the many uses of political language, writing:

It is almost universally felt that when we call a country democratic we are praising it: consequently the defenders of every kind of regime claim that it is a democracy, and fear that they might have to stop using that word if it were tied down to any one meaning. Words of this kind are often used in a consciously dishonest way. That is, the person who uses them has his own private definition, but allows his hearer to think he means something quite different.[88]

Orwell suggested that political language was most often used to defend the indefensible, citing examples of maintaining British rule in India, Russian purges, and the use of nuclear bombs in Japan. Such things, he wrote, “can indeed be defended, but only by arguments which are too brutal for most people to face, and which do not square with the professed aims of political parties.” Thus, he noted, “political language has to consist largely of euphemism, question-begging and sheer cloudy vagueness.” When poor villages are bombed by foreign militaries, its residents machine-gunned and murdered, homes destroyed and survivors scattered, this, wrote Orwell, “is called pacification.” Political leaders cannot publicly state that they intend to murder and destroy entire communities and nations all for the benefit of imperial ambitions, so they claim instead that they must pacify the population, to secure ‘order’ and ‘stability’. The term “pacification” is never actually defined, but the policies and effects which occur under the cloaking of that rhetoric provides as clear a definition as one will get. Orwell continued:

The great enemy of clear language is insincerity. When there is a gap between one’s real and one’s declared aims, one turns as it were instinctively to long words and exhausted idioms… All issues are political issues, and politics itself is a mass of lies, evasions, folly, hatred, and schizophrenia… But if thought corrupts language, language can also corrupt thought. A bad usage can be spread by tradition and imitation even among people who should and do know better.[89]

Orwell’s essay, Politics and the English Language, is perhaps more relevant today than it was when it was written in 1946. One journalist, Matt Schiavenza, discussed the uses of political language in an article he wrote for The Atlantic discussing modern politics in China. With names of powerful institutions and conferences such as the Politburo Standing Committee, the Plenum and Plenary sessions of the Party Congress which promise a host of undefined ‘reforms’, Shiavenza wrote, “for lovers of clear, concise language, Chinese politics are a nightmare.” But he acknowledged its purpose: “If this language seems vague and boring, well, that’s the point: Chinese politics are designed to attract as little attention as possible.”[90]

The same can and should be said for American, European, Japanese and other modern, advanced political societies. China is an extreme case, but by no means the exception. Chinese politics has a heavily technocratic element, in which ‘experts’ (engineers, economists, academics) frequently rule the political apparatus and manage the public debate, designing and implementing large-scale social engineering projects; reshaping, en masse, the nature and structure of society, defining purpose for the population, steering the direction and managing the many crises that result from the totalitarian domination of 1.3 billion people.

In 2010 alone, China experienced 180,000 protests, riots and mass demonstrations, an average of 500 per day, and this was in the midst of an economic ‘boom’ for the country.[91] In such circumstances it is necessary for the Chinese elite to present an image of themselves not as in-fighting, factional, power-mad, super-rich oligarchs competing for domination, but as highly-qualified ‘experts’ who are able to make decisions and implement policies through ‘consensus’ in the interests of China and its population as a whole. Obviously, this is a fantasy world, behind which is a totalitarian system that controls the media, education, communication, transportation, and with all the necessary tools of violent repression.

Technocracy – that is, rule by experts – establishes the institutional ideology, and communicates through the technical language of Chinese politics. Only other ‘experts’ have the technical skills to understand what is being said and to participate in the process of decision-making. The public is left with obscure generalizations, flashy distractions, empty sound-bites and pre-packaged conclusions. But perhaps even worse than the “nightmare” of Chinese politics and its “vague and boring” language, is that of the global financial structure and economic diplomacy. It is within this world where the ideologies, individuals and institutions of global governance have constructed and advanced the architecture and interests of the global Empire of Economics.

The Language of Empire

The language of economics and finance is designed to be incomprehensible to those who are not ‘experts’ or experienced in the fields of economics and finance. The language reflects an ideology that is heavily institutionalized in modern ‘industrial’ society, obscuring realities behind its vague and undefined terms and concepts. We are presented with a world of trained economists, experts in the economic ‘science’ of society; politicians, presidents, prime ministers, chancellors and other heads of state who speak and decide on important matters; the finance ministers and central bank governors who meet, speak, plan and implement the world’s major economic and financial policies; the heads of acronym-named international organizations and their technocratic administrations; the banks, corporations, institutions and individuals who control most of the wealth, resources, trade and ‘financial markets’; the universities, think tanks and foundations who shape the education and training of future financial diplomats, who define the debate and discussion, who determine the policy-options and objectives; and the journalists and news publications who disseminate the economic and financial ‘news’ of the day, whose primary audience is composed of the diplomats and key players in the world of finance and economics.

It is a world little understood to outsiders, obscure and unknown even to most trained economists. Like their counterparts in political science, economists are ‘educated’ (aka: trained, indoctrinated) so that they know just enough to be active participants and administrators of the political (or economic) system, but not enough to understand its actual structure and purpose, nor question its legitimacy. Mired and focused on the technical details, ‘specialized’ in their education to focus and only understand specific sectors of the economic and financial system, the experts are segregated, knowledge is divided and divisive. With a tunnel vision focus on the technical details, most economists and experts are incapable of seeing the larger, institutional, ideological and indeed, the deeply political nature and realities of the financial and economic system.

The economic and financial system is designed this way, precisely because – much like Chinese politics – behind its technical terms, opaque objectives, and insurmountable institutions lies a world of brutal power politics, national and transnational factional battles between rivals and regions, engineering empire, enforcing state tyranny and violence, undertaking dramatic coup d’états and maintaining dynastic dominance. The world of financial power politics stands at the core of the Empire of Economics.

Economic and financial diplomacy is concerned with the design and construction of the Empire of Economics. Diplomats, by definition, hold political authority. Their job is to represent the interests of their nation, their ministry or government department, their embassies, outposts and ‘missions’. In the realm of economic and financial diplomacy, the key participants and players, those with the most political authority, are the central bankers, finance ministers, treasury secretaries, the leadership of international organizations, trade negotiators, economic advisers and of course, the presidents, prime ministers and chancellors – the heads of state.

Foreign diplomacy and international relations present itself with the public image of a convoluted and never-ending attempt at failing to help others around the world, to advance democracy, freedom, human rights, civilization and the ‘common interest’. But behind the media, the rhetoric of diplomacy, the coded language and confused causes, is an unforgiving world of empire. This world erupts in wars, coups, civil conflicts, dictators taking power or falling from it, bombs, bullets and occupation.

The famed linguist and prolific social critic, Noam Chomsky (one of the most cited intellectuals in history), has accurately described the world of ‘international relations’ between nations as functioning according to ‘Mafia principles.’ For decades, Chomsky has been one of the best known, most articulate and well-researched critics of U.S. and Western foreign policy and empire. He has spoken and written consistently that since World War II, regardless of political party or affiliation, successive presidents and their administrations were guided in their foreign policy by the “godfather principle, straight out of the mafia: that defiance cannot be tolerated.” Countries that defy the United States or its allies must be “punished” before “the contagion spreads.”[92] Chomsky elaborated on the ‘Mafia principle’ of international relations, writing, “The Godfather does not tolerate ‘successful defiance,’ even from a small storekeeper who fails to pay protection money. It is too dangerous. It must therefore be stamped out, and brutally, so that others understand that disobedience is not an option.” This principle has been “a leading doctrine of foreign policy for the US during the period of its global dominance.”[93]

Economic diplomacy has its parallels as the most powerful nations compete and cooperate for influence within the global Empire of Economics, also adhering to ‘Mafia principles’ in the exercise of financial power.

Diplomacy and Design of the “World Political Structure”

The Empire of Economics had been long in the making, but its modern manifestation – the various institutions, ideologies and interests that comprise the global economic and financial system – is largely a product of the 1970s. It was an era of profound monetary (currency) and economic crises and transformations. The global currency system that had existed in managing the monetary and economic relations between nations from the end of World War II was abandoned by the United States in 1971. Thereafter, the world of economic diplomacy was thrown to the center of the storm. Decisions of immense political importance had to be made and a new global monetary and financial system needed to be constructed. This task was handed to the central bankers and finance ministers of the rich and powerful nations of the world, first and foremost, the United States, followed by West Germany, France, Britain, Japan, Italy, Canada, Switzerland, the Netherlands, Belgium, Luxembourg and the Nordic nations.

Suddenly, finance ministers and central bankers were pushed to the forefront of advancing the global imperial interests of the rich, powerful nations, at times even eclipsing foreign and state ministers responsible for managing the nation’s foreign policy. It is through the frequent private meetings, international forums, conferences, social events and state visits where the finance ministers, central bankers and other technocrats engage in the very long and incremental process of negotiating the construction and evolution of the global economic and financial system. This was what Kissinger defined as the “trick” to use in creating “a world political structure.”

Banks, financial institutions, corporations and global markets were reaching far beyond the nation-state, becoming transnational in character, objectives and ideology. Political power had to follow financial and corporate power, to provide the political legitimacy necessary to advance the interests of the Mafiocracy. A bank can make a loan, but only powerful nations can force compliance to pay, to demand policies be changed, and to enforce the repercussions of failure. It was in the finance ministries and central banks of the powerful nations where state power and authority was to be exercised in closer coordination with other influential nations, and where they would consult and cooperate with concentrated transnational financial power.

Since the early 1930s, central bankers from the rich and powerful Western nations would meet in secret (usually in Basel, Switzerland) at the headquarters of the Bank for International Settlements (BIS), the central bank to the world’s major central banks. These meetings of central bankers take place behind closed doors every two months, in off-the-record conversations, after which no communiqué or press release is issued, no reporters informed. The cooperation of central bankers was in turn supported and enhanced through the establishment of the International Monetary Fund (IMF) in 1944, which brought in not only central bankers, but also finance ministers from the member nations of the Fund.

Liaquat Ahamed is a widely read and respected author within the economic world, and particularly among financial diplomats. He has worked at the World Bank, with banks, hedge funds, asset managers and is currently on the board of trustees of the Brookings Institution, an influential American think tank. In 2009, he published Lords of Finance about the major Western central bankers during the early 20th century, winning multiple awards, including the 2010 Pulitzer Price for History. In 2014, he published another work, Money and Tough Love: On Tour with the IMF, looking at the history and workings of the International Monetary Fund, interviewing many IMF officials and even attending several meetings and travelling with IMF missions to various nations.

Ahamed noted that from its origins at the end of World War II, the annual meetings of the IMF (usually taking place in September or October), consisted primarily of top financial diplomats from the founding 29 members of the Fund, which “functioned as a sort of conclave of the cardinals of capitalism, intent on rebuilding the Western financial system after thirty years of war and depression.” The annual meetings of the IMF were “grand affairs,” as most of the “financial statesmen of the era had either been bankers at the tail-end of the Gilded Age or, in the case of the British, colonial administrators.” In the late 1950s, the IMF membership had grown to sixty-eight, with several hundred officials showing up to the annual meetings.[94]

The IMF, BIS and other international institutions such as the World Bank, Organisation for Economic Co-operation and Development (OECD), and the General Agreement on Tariffs and Trade (GATT) would play central roles in the management and expansion of the global Empire of Economics. But a great deal of power was organized often outside of these institutions, by relatively smaller groups of nations who would meet in private as ad hoc groups of finance ministers, central bankers their deputies and other technocrats and international organization officials. Together, as representatives of the rich and powerful nations and institutions, they would seek to forge a consensus between themselves, which they could then extend through the various other (larger) forums and institutions.

The first of these ad hoc groups was known as the Group of Ten (G-10), established in 1962. The G-10 would periodically bring together the central bankers and finance ministers of ten rich nations: Belgium, Canada, France, [West] Germany, Italy, Japan, the Netherlands, Sweden, the United Kingdom and the United States. Very soon after its establishment, Switzerland was invited, yet it continued to call itself the Group of Ten. Through this forum, these nations would “consult and co-operate on economic, monetary and financial matters.”[95]

Over the first half of the 1970s, a series of committees would be formed to further coordinate policies and strategies among the powerful nations. The Group of Ten agreed to form a special group at the IMF in 1972 known as the Committee of 20 (C-20), bringing together the finance ministers and central bankers from the key constituencies represented on the IMF’s executive board, coming together at the annual and spring meetings of the IMF and World Bank in order to function as a type of steering committee for the Fund, providing strategic direction the Board of Governors.[96]

In 1973, a separate group was formed, known as the Group of Five (G-5), bringing together the finance ministers (and occasionally the central bankers) from the United States, West Germany, Japan, the United Kingdom and France.[97] The following year, the IMF’s C-20 was institutionalized as the Interim Committee of the IMF, and would later become known as the International Monetary and Financial Committee (IMFC), which still exists and meets today. It has a parallel group that provides strategic advice to the World Bank, known as the Joint Development Committee.[98]

A hierarchy of these groups began to emerge, with the richest five countries holding their secretive meetings of the Group of Five, where they would seek to establish a consensus among themselves and subsequently push their agreements through the wider G-10, from where they would then advance their collective interests through the Interim Committee of the IMF. The era of ad-hoc committees to run the world had begun. The IMF’s own publication, Finance & Development, would later describe these groups as “a steering committee for the world economy,” driving the process of global governance.[99] In 1975, the U.S. Treasury Secretary, William E. Simon, wrote to President Ford, “I believe that bringing together finance ministers from time to time in these forums is a useful way of getting decisions on difficult and technically complex financial issues.”[100]

A few months later, Henry Kissinger would explain to President Ford the strategy “to use economics to build a world political structure.” Two days after Kissinger made that statement to the President, a larger meeting was held at the White House which included all of the top financial diplomats and economic advisers in the Ford administration, where the strategy was further discussed. As Kissinger told the other ministers during the meeting, “it is better to have the Finance Ministers be bastards, that’s where I want it.”[101]

Before the end of the year, the Group of Five would meet for the first time at the level of heads of state, holding their inaugural meeting in Rambouillet, France, where Italy was also invited as an additional member. The following year, Canada would be invited to join, thus crowning the annual meeting as the Group of Seven (G7), which continues to meet to this very day, functioning as “an informal Western directorate,” as the New York Times described it in 1975.[102] The ministers and central bankers of the G5 would continue to function as the primary forum for economic coordination until the mid-1980s, when the G7 ministers and central bank governors would officially replace it.

The financial and corporate power that was concentrated in the G-7 nations began to expand across the world, and so too did major economic, financial and debt crises. The powerful nations would then have to come to the rescue of their own banks by providing bailouts for foreign nations who owed the banks money and were too poor to pay. In return for financial ‘aid’, largely channeled through the IMF, the Group of Seven nations would demand strict conditions to be met, including sweeping changes to the economic, political and social structure of the nation getting the bailout. Their economies would be forced to reform to the ‘market system’, benefitting domestic oligarchs and elites, as well as large banks and corporations in the G-7 nations. A financial or debt crisis would manifest as a form of financial warfare, while the bailout programs would function as economic occupations designed to advance the interests of the Empire.

From the early 1980s to the early 2000s, these debt crises spread from Latin America to Africa, Eastern Europe, East Asia, Russia and back to Latin America. The International Monetary Fund functioned like an imperial management facility, controlling entire nations and regions like an occupying power. As early as 1977, the U.S. Treasury Secretary, Michael Blumenthal, wrote to President Jimmy Carter discussing the importance of the IMF, while acknowledging that many nations of the world were complaining about the harsh conditions attached to IMF loans. Blumenthal wrote, “The IMF for years served as a kind of whipping boy,” noting that countries that were in crisis and needed to take drastic measures to solve their financial situations (usually in the form of painful austerity measures) would “often need an external source to blame. The IMF is an ideal candidate and is accustomed to being in that position.” Further, he wrote, “If we didn’t have the IMF, we would have to invent another institution to perform this function.”[103]

In the early 1990s, the IMF was managing ‘programs’ in over 50 countries around the world, which “helps explain why it has long been demonized as an all-powerful, behind-the-scenes puppeteer for the third world,” in the words of the New York Times.[104] In 1992, the Financial Times noted that the fall of the Soviet Union “left the IMF and G7 to rule the world and create a new imperial age,” which “works through a system of indirect rule that has involved the integration of leaders of developing countries into the network of the new ruling class.”[105] When Russia was invited to these special meetings, they would be known as the Group of Eight (G-8), but the G-7 still served as the core of global governance.

In the late 1990s, a new committee was formed, known as the Group of Twenty (G-20), which consisted of the finance ministers and central bankers of the G-7 nations, the European Union and twelve major “emerging market” economies: Russia, China, India, Brazil, Mexico, Indonesia, Argentina, South Africa, Saudi Arabia, Turkey, Australia and South Korea.[106] It would not be until the global financial crisis of 2008 that the G-20 would meet at the level of heads of state, when it held its first meeting in Washington, D.C. on November 15.[107] By September of 2009, the G20 had effectively become “the new global economic coordinator” and “steering committee” for the world economy.[108] From 2011 onwards, the G7 would only meet “informally,” with the G20 finance ministers and central bankers gathering prior to the IMF and World Bank spring and annual meetings in order to coordinate strategy and policies.[109]

Despite the dry and uninspiring names of the groupings, the reality is that they function as conclaves of empire, where ministers and governors align in their respective cliques – such as advanced versus emerging market economies – and pursue their individual national and collective interests. The emerging market economies push for greater representation and authority in international organizations such as the IMF, attempting to increase their own power within the apparatus of global governance and empire. Power struggles and financial warfare between nations are left to behind-the-scenes negotiations and discussions, kept largely out of the public eye.

In 2010, the then-chairman of the International Monetary and Financial Committee (formerly the Interim Committee of the IMF) was Youssef Boutros-Ghali, the finance minister of the Egyptian dictatorship, widely respected in financial circles, though much hated among Egyptians as a representation of the dictatorship’s extreme corruption. That year, a currency war had erupted between the rich nations and the emerging market economies, in which countries like China and Brazil were seeking to make their currencies more competitive than Western currencies, thus making their exports cheaper and more attractive. Financial diplomats began to fret about the potential implications of the currency warfare. The issue was to be taken up at the IMFC meeting, though Boutros-Ghali stressed that the subject “will not be on the public agenda” during the IMF meetings. “These are issues that you solve in closed rooms,” he said, and needed “to be handled quietly and in a spirit of cooperation.” Such important issues were not for public discussion, as it could frighten markets and accidentally reveal to the public the true nature of the global economic system. Instead, Boutros-Ghali explained, “It is something that needs quiet discussions, quiet diplomacy to get things moving.”[110]

The “quiet diplomacy” of “closed room” meetings of finance ministers and central bankers is one of the defining characteristics of the modern imperial system. There is no better example of this system today than that of the European Union and its debt crisis, which began in 2010.

Europe Under Empire

One of the most important institutions in Europe is called the ‘Eurogroup’, consisting of the finance ministers of the 19 nations that use the euro as their common currency within the 28-nation European Union. From the time that Europe’s debt crisis began in early 2010, the Eurogroup would hold meetings at least once a month, with top officials from the IMF, the European Commission (the executive body of the EU) and the European Central Bank (ECB) also participating. The Eurogroup was presided over by a president, Jean-Claude Juncker, who also served as the Prime Minister and Finance Minister of Luxembourg.

The Eurogroup functions as a type of board of directors for the eurozone economies, meeting behind closed doors at various locations across Europe where they negotiate and attempt to establish a consensus in managing the debt crisis, forcing countries in crisis (such as Greece, Ireland, Portugal, Italy and Spain) to impose austerity measures, cutting social spending and increasing unemployment and poverty for the benefit of banks and financial markets. The future of the European Union and its 500 million citizens is decided in these “secret meetings” of finance ministers, central bankers and transnational technocrats.[111]

In April of 2011, Jean-Claude Juncker was speaking at a conference of European elites when he said, “Monetary policy is a serious issue. We should discuss this in secret, in the Eurogroup.” Juncker explained that throughout his more than two decades as prime minister of Luxembourg, making him the longest-sitting head of state in the E.U. at the time, he often “had to lie” in order to prevent financial markets from panicking. Just as monetary policy had long been discussed and decided in secret meetings of central bankers, Juncker felt that all major economic decisions should be discussed and agreed upon in the same way. “I’m ready to be insulted as being insufficiently democratic, but I want to be serious,” he explained, “I am for secret, dark debates.”[112] The following month, he lived up to his reputation and became the target of criticism after he lied to the press about a secret meeting of the Eurogroup that was taking place in a Luxembourg castle to discuss a second possible bailout for Greece.[113]

Presented to the public as an essentially economic issue, Europe’s debt crisis is discussed and debated through the use of financial rhetoric and terminology in all its bland and vague varieties: fiscal discipline, structural reform, austerity, labour flexibility, budget and trade deficits, external imbalances, internal adjustments, strict conditionality and deficit reduction strategies. Many of these terms are interchangeable, and while they all provide the appearance of technical expertise and understanding, they have profoundly important meanings and implications.

For example, the main policy pushed on countries in crisis is to demand that they cut all forms of social spending, including health care, education, welfare, social services, firing large amounts of public-sector workers, dismantling government programs and policies which benefit the majority of the population, creating mass unemployment and poverty. This systematic impoverishment of the population is a brutal process that results in mass misery, increased suffering, hunger, disease, skyrocketing suicide rates and social devastation. To describe this process in these terms, however, would be to prevent the policies from ever being implemented. Instead, these policies and programs are described with the following terms: austerity, fiscal discipline, fiscal adjustment, belt-tightening, deficit reduction, balancing the books, and budget consolidation.

The brutality of the European and global economic empires remains hidden behind these bland terms. But the truth is revealed in the countries and on the streets of those nations most affected by the debt crisis, in Greece and Spain, Italy, Ireland and Portugal. Unemployment has soared, particularly among youth, of whom more than 50 percent remained unemployed in Greece and Spain by 2015. Poverty and suffering under the E.U.’s economic colonization programs have prompted social unrest, resistance, riots and rebellions, new social movements, anti-austerity political parties and even the rapid rise of fascism. Germany dominates Europe and its major institutions, as the largest economy on the continent, second-largest exporter in the world after China, and fourth largest economy in the world as a whole (following the U.S., China and Japan). Its economic weight makes it the most powerful nation influencing and directing the apparatus of the European Union, including the European Commission, the European Central Bank and the Eurogroup, with significant influence (especially alongside other rich EU nations) in the IMF and Bank for International Settlements (BIS).

Germany leads a bloc of rich nations within the European Union who are the strongest advocates of “fiscal discipline” and “austerity,” among them the Netherlands, Finland, Luxembourg and Austria, generally referred to as the northern bloc or creditor countries. France, the second-largest economy in the European Union, generally leads a bloc consisting of the ‘southern’ nations, the debtor nations. The rich countries provide the majority of funding to the E.U.’s institutions, and thus wield the greatest influence.

Germany and France were the two most influential countries in constructing the European Union over the course of the previous six decades, with consistent cooperation and support among the Benelux countries (Belgium, Netherlands, Luxembourg), and occasionally the United Kingdom, though its influence has dramatically decreased in recent years. As a result of this process, the rules that were written were done so in such a way as to benefit this ‘core’ group of nations more than any others. Despite the fact that there are 28 nations in the European Union, the collective weight of a core group consisting of a handful of rich nations is able to direct the process of integration and force the other member nations to change their policies and transform their societies.

As financial markets began to punish countries for having high debt levels, plunging them into crisis, the European Union, its key institutions and leaders began to mobilize to provide large ‘bailouts’ to these countries. Big banks, most notably those based in Germany and France, had lent large amounts of money to several nations, including Greece, and wanted their interest payments to be made on time. The banking systems in the rich countries were thus under threat of potentially facing the consequences of their own bad loans. To prevent the banks from having to suffer, the rich nations agreed to establish bailout programs which would be managed by the European Commission, the European Central Bank and the International Monetary Fund (IMF). These three institutions, collectively known as the Troika, would provide the money for the bailouts and in turn would set the conditions demanded by the core nations for the bailout countries to implement, namely, austerity and impoverishment. The Troika institutions are entirely unaccountable to voters and publics, representing unelected and anti-democratic technocratic tyrannies, yet they wield unprecedented power over entire populations and societies.

The European Commission functions as the executive branch of the E.U., writing legislation and managing roughly two dozen governmental cabinet departments, headed by individual Commissioners, the most influential and important of which is the Commissioner for Economic and Monetary Affairs. For much of the debt crisis, this individual was Olli Rehn, a Finnish politician who served in that position from 2009 to 2014. Coming from Finland, Rehn was closely aligned with the core group of rich nations and was among the strongest individual proponents of austerity throughout the crisis. The Commission itself was presided over by a President, personified in the former Portuguese Prime Minister, José Manuel Barroso, who served in the role from 2004 to 2014.

The European Central Bank (ECB) manages the monetary policy for the 19 member nations of the eurozone who share a common currency. The ECB is run by a president, a role held from 2003 to 2011 by a Frenchman, Jean-Claude Trichet, a former governor of France’s central bank, the Banque du France. From late 2011 on, the role of president was held by an Italian, Mario Draghi, previously the governor of the Bank of Italy. The ECB is further managed by an Executive Board, consisting of the president, vice president and four other members appointed from different EU countries. In addition, the ECB has a Governing Council made up of the governors of the national central banks of the eurozone economies, collectively comprising what is called the Eurosystem. The German Bundesbank and its president is the most powerful individual central bank in the ECB, often allied with its Dutch, Finnish and Austrian counterparts.[114] Both the Executive Board and Governing Board are responsible for making the major decisions in the central bank’s policies and play a highly influential role in managing the European debt crisis, especially in crisis-hit countries.

Technically speaking, the ECB is an independent institution, meaning that it is given political independence from the nation states of the European Union, serving its mandate as a technocratic institution interested only in a stable monetary policy, free of interference from political leaders. The core countries of the EU, however, wield significant influence on the ECB, and not only through their appointments to the Executive Board and their respective national central banks, but in behind-the-scenes negotiations and secret meetings. As the heads of state of the core eurozone nations frequently formed an allied bloc in their negotiations and management of the European debt crisis, these blocs were reflected inside the ECB and other EU institutions,[115] and Germany remained the most influential of all.[116]

The behind-the-scenes power politics between nations was also reflected in the Eurogroup of finance ministers, where Germany and France would have to negotiate an agreement, with Germany leading the group of countries demanding harsh measures, alongside the Netherlands and Finland.[117] This has allowed Germany, the Netherlands and Finland to have some of the most influential finance ministers in managing the entire process and policies of reform and deeper integration in the European Union.[118] Many of these policies and programs are agreed through the “secret, dark debates” of the Eurogroup meetings, to borrow Jean-Claude Juncker’s phrase.

The German Finance Ministry is located in Berlin, housed in a Nazi-era building which previously served as the headquarters for the Nazi air force, the Luftwaffe, from which Hitler’s second-in-command, Herman Goering, plotted the bombing campaigns across Europe. Today, the same building serves as the main center for managing Germany’s economic empire in the EU and the Troika occupations of crisis countries. The building “is a monument to both the Nazis’ ambition and their taste,” noted Vanity Fair, though the statues of eagles sitting atop large swastikas have been removed.[119]

In late 2011, Europe’s debt crisis was reaching new heights, with financial markets waging a vicious assault against Greece and Italy for their failure to impose brutal austerity measures on their populations. It was at the Old Opera House in Frankfurt, Germany, where a farewell party was being held for Jean-Claude Trichet, president of the ECB, resigning from his post at the end of the month (to be replaced by Mario Draghi). Nearly all of Europe’s key policymakers were present at the party, but as the crisis escalated, a small group of top officials held an “explosive” behind-the-scenes meeting to try to come to an agreement on forming a response. Nicolas Sarkozy squared off against Trichet, with German Chancellor Angela Merkel coming to the central banker’s side. But the real significance of the meeting was that it established the formation of a small ad hoc group of eight individuals at the top of the EU’s power structure who would be able to collectively steer the course of Europe.[120]

They called themselves the ‘Frankfurt Group’, though the media dubbed them Europe’s new ‘Politburo’, reflecting the similar functions of China’s top ruling body. The group consisted of the German Chancellor, French President, the head of the ECB, the President of the European Commission, José Manuel Barroso, the Commissioner for Economic and Monetary Affairs, Olli Rehn, the President of the Eurogroup of finance ministers, Jean-Claude Juncker, the President of the European Council, Herman Van Rompuy, and the Managing Director of the IMF, former French finance minister Christine Lagarde.[121]

Within the following three weeks, the Frankfurt Group would orchestrate coup d’états in both Greece and Italy, removing democratically-elected prime ministers and political parties from power, replacing them with economists and central bankers, technocratic tyrants whose sole purpose was to impose the brutal austerity measures demanded by banks and financial markets. One of the key battlegrounds in the war waged by the Frankfurt Group was in the lead-up to and during the G20 summit of leaders and ministers at Cannes, France in early November of 2011.[122]

Less than a week before the G20 summit, Greece’s prime minister, George Papandreou, surprised members of his own cabinet and infuriated Europe’s rulers when he decided to hold a referendum asking Greek citizens if they were willing to follow the conditions set by the bailout agreement with the Troika. Sarkozy went “ballistic” and summoned Papandreou to Cannes for a meeting with several officials of the Frankfurt Group in order “to put Papandreou against the wall, in the corner,” in the words of one person present at the meeting. Over the following weeks, the Group would orchestrate the removal of Papandreou from power, replacing him with Lucas Papademos, the former Vice President of the European Central Bank from 2002 to 2010, prior to which he was the governor of the central bank of Greece from 1994, simultaneously sitting as a member of the ECB’s governing council from its creation in 1998 until 2002. European Commission President José Manuel Barroso had played a central role in removing Papandreou from power, operating secretly from hotel rooms with his close aides and without the knowledge of Merkel or Sarkozy.[123]

When the world’s major leaders headed to Cannes in early November for the G20 summit, President Obama was given an inside look into the inner workings of European power politics, even attending a meeting of the Frankfurt Group. The European debt crisis took international headlines and was the main topic of discussion at the summit. The Obama administration, with Timothy Geithner as Treasury Secretary, had for months been working quietly through financial diplomacy to encourage a more comprehensive solution to Europe’s crisis, attempting to balance the interests of global financial markets with those of Germany. Obama told Chancellor Merkel and other leaders, “Our preference is that the ECB should act a bit like the Federal Reserve did,” referring to its role in acting as a “lender of last resort,” providing funds for states or banks that needed quick cash to avoid a crisis.[124]

The ECB’s legal mandate reflected that of its major national backer, the German Bundesbank, the chief architect and prototype of the ECB structure. Holding a far more conservative and ‘hawkish’ approach to monetary policy than most of the world’s other central banks, the mandate stressed that the central bank was not allowed to finance governments, and so instead of acting quickly to bailout governments in need, financial markets wage war against nations in need of funds while EU leaders squabble and negotiate the details of programs that require the countries to restructure their entire societies. The longer the negotiations drag out, the more vicious the assault of financial markets will be. This exacerbates the crisis and weakens the negotiating position of the crisis country, allowing the powerful countries to extract more concessions and impose more demands.

Central bankers frequently refer to the term and concept of “creative destruction,” referring to the role that financial crises play in providing the needed pressure on countries to change their policies and restructure their societies, following the orders of central bankers, finance ministers and other technocrats. Andrew Crockett was the former head of the Bank for International Settlements (BIS), the central bank to the world’s central banks, who was one of the most respected international monetary diplomats of his era. Crockett described “creative destruction” as a process of financial instability that “is not only inevitable but also positive.” It forces various governing and social systems “to change and adapt,” destroying old and creating new institutions and structures. This process “has to be allowed to work.”[125] Former Federal Reserve Chairman Alan Greenspan referred to creative destruction as the “partner” of “free-market competition,” noting that where markets go, crises follow.[126]

As financial markets creatively destroyed European countries, the Frankfurt Group held four meetings on the sidelines of the G20 summit in Cannes, with its eight ‘Politburo’ members wearing badges marked ‘Groupe de Francfort’. Obama was invited to one of the meetings where he received a “crash course” in Europe’s ruling structures and processes. One participant in the meeting referred to the American president as “a quick learner.” Obama continued to meet with other European leaders assembled at Cannes, attempting to help forge a response to the crisis. At one point, he pulled Angela Merkel aside just prior to a G20 working session and said, “I guess you guys have to be creative here.”[127]

And they got creative with Italy’s Prime Minister, Silvio Berlusconi, the billionaire media oligarch who was long a thorn in the side of EU leaders, consistently failing to impose the austerity measures demanded by Brussels, Frankfurt and Berlin. Chancellor Merkel had been quietly working behind the scenes for weeks to remove Berlusconi from power.[128] On November 12, Berlusconi was forced to resign and his replacement was Mario Monti, an economist and former European Commissioner.[129] Monti was also a founder and honorary chairman of Bruegel, a Brussels-based international economic think tank. He served on advisory boards to Coca-Cola and Goldman Sachs, was a former Steering Committee member of the Bilderberg Group, and at the time of his appointment as Prime Minister, he was serving as the European Chairman of the Trilateral Commission, the transnational think tank founded by David Rockefeller in 1973. Lucas Papademos, the technocratic prime minister of Greece, was also drawn from among the membership of the Trilateral Commission.

It no doubt helped matters that Mario Monti was “an old family friend” of the Agnelli family, whose young patriarch, John Elkann, was also a Trilateral Commission member. Monti even served on the board of Fiat for some time. After Monti assumed his position as Prime Minister of Italy, he would meet regularly with John Elkann, who lobbied on behalf of Italian industry to promote reforms that benefit large companies.[130] Six months into his technocratic government, John Elkann said that there was “no doubt that Monti becoming prime minister has been positive for Italy.”[131]

Following the Frankfurt Group’s two coups, the Wall Street Journal praised the moves as “exactly the kind of game-changing display of political power euro-zone leaders have promised but failed to deliver since the start of the crisis,” adding that it was “sure to be greeted with similar jubilation in the market.” The “self-appointed Frankfurt Group,” however, lacked legitimacy and was representative of a “democratic deficit” in the European Union.[132] The Financial Times referred to technocrats as “efficient, calculating machines” who might “lack a democratic mandate but they’re fantastically well-regarded in Frankfurt.” The job of the “brilliant but bloodless functionaries” was to push through “unpopular measures” without concern for citizens.[133]

The New York Times referred to the technocratic coups as “the cold reality of 21st-century politics,” in which Greek and Italian citizens “have just watched democratically elected governments toppled by pressure from financiers, European Union bureaucrats and foreign heads of state.” Democracy and national sovereignty might be pleasant concepts, but when it comes to a crisis, “it’s the technocrats who really get to call the shots,” with stability for the euro and the European Union pursued “at the expense of democracy.” Real power in the European Union “would pass permanently to the forces represented by the so-called Frankfurt Group.”[134]

Roger Altman is the chairman of Evercore Partners, a major U.S. investment bank, and a former top U.S. Treasury Department official during the Clinton administration, having served a long career between Wall Street and Washington. Altman also happens to be a member of the Steering Committee of the Bilderberg meetings, as well as writing regular columns in the financial press. In December of 2011, Altman reflected on the events of previous months in an article for the Financial Times, concluding that financial markets were “acting like a global supra-government” which is able to “oust entrenched regimes where normal political processes could not do so,” and “force austerity, banking bail-outs and other major policy changes.”

Their influence “dwarfs” that of institutions like the IMF, and apart from “unusable nuclear weapons,” financial markets “have become the most powerful force on earth.” When their power is “flexed,” he wrote, “the immediate impact on society can be painful,” with growing unemployment and the collapse of governments. Whether the power of financial markets was “healthy” for the world was not important, he suggested, but their power “is permanent.” Altman concluded, “above all, there is no stopping the new policing role of the financial markets. There may be more frequent market crises. We should not rush to conclude that they will end in tears.” At least, not in tears for those who run large banks.[135]

Financial markets, technocrats, central bankers, finance ministers and the top political leaders of the dominant nations have wreaked havoc on Europe. The process of economic colonization of the ‘periphery’ nations of the E.U. has advanced year after year. Nations were repeatedly put under Troika occupation, with policies dictated by technocrats and politicians in Brussels, Frankfurt, Berlin, Paris and Washington. The policies create mass suffering as austerity destroys the countries, impoverishes their populations, while the various ‘structural reforms’ open up the economy to be plundered cheaply by foreign banks and corporations. Commentators in the press, however, began to increasingly warn about Europe’s “democratic deficit” and its crisis of legitimacy in the eyes of its 500 million citizens.[136]

One of the world’s largest banks, JPMorgan Chase, published a report on Europe’s debt crisis in May of 2013, stating that the process of “adjustment” in the eurozone was “about halfway done on average,” and warning that austerity would need to continue “for a very extended period” and that leaders would need to deal with “deep seated” political problems. The bank identified what it viewed as the main problems, embedded in the constitutions and political systems of many of the countries in crisis, including the “constitutional protection of labor rights” and “the right to protest if unwelcome changes are made to the political status quo.”[137]

There was, of course, a reason why the EU’s technocratic, political and financial elite were growing increasingly worried about “democratic legitimacy” and people exercising “the right to protest.” The citizens of Europe, especially the ‘periphery’ nations under various forms of Troika and financial market pressure, had been increasingly involved in social unrest, protests, urban rebellions and the emergence of new, populist, anti-austerity and increasingly revolutionary movements. These processes were not confined to Europe, however, as resistance movements were taking place with increased frequency and ferocity around the world in the wake of the global financial crisis.

The Age of Rage

It was in late 2010 and early 2011 that the world witnessed the start of a new phase of global uprisings, with the Arab Spring erupting and spreading across much of the Middle East and North Africa, leading to the removal of long-time U.S. and European-supported dictators in Tunisia, Egypt, and Yemen, with protests spreading across many more nations, upsetting the established order. The Saudis, along with the other Gulf Arab dynastic dictatorships, led the counter-revolution against the move to democracy, spreading violence, chaos and civil war from Libya to Syria, Iraq, Yemen, and beyond.

In the European Union, the year 2011 also turned out to be a very dramatic one in terms of protests, social unrest and anti-austerity movements. Protests of tens of thousands in Greece would erupt in violent confrontations with the police,[138] as a new anti-austerity movement began spreading across the country, going by the name, ‘I Won’t Pay’ (for someone else’s crisis).[139] As Portugal was strong-armed into a bailout program, the “desperate generation” of youth, inspired by the Arab Spring protests, sparked a new social movement organized via social media, struggling against the “wasted aspirations of a whole generation,” with more than 30 percent of youth unemployed across the country.[140] Even Brussels experienced instances of riot police turning water cannons and tear gas on protesters who were opposing the E.U.’s policies and increased powers.[141]

The protests in Portugal in turn inspired a new protest movement in Spain, where thousands of youth occupied the Puerto del Sol square in Madrid in opposition to the main political parties and austerity. Known as the ‘Indignados’ (the indignant ones), the movement spread across much of the country as unemployment among youth soared to 45 percent.[142] The Guardian noted that, “a youth-led rebellion is spreading across southern Europe.”[143] Thousands of protesters turned up to voice their opposition to the Group of 8 (G-7 plus Russia) summit in May of 2011.[144] At the end of that month, tens of thousands of protesters took to the streets across Europe, from Spain to Germany, France, Greece, Portugal and beyond, answering the call for a “European Revolution” in over one hundred cities across the continent.[145] Spain’s Indignados paved the way for similar movements to be replicated in several other countries, notably including Greece.[146]

In the pages of the Financial Times, Gideon Rachman wrote that “2011 is turning into the year of global indignation,” from the Arab world, to Europe, India, China, Chile and even Israel. “Many of the countries hit by unrest,” he noted, “have explicitly accepted rising inequality as a price worth paying for rapid economic growth.”[147] Protests and social unrest spread across Europe throughout the summer, particularly in Greece and Italy. In September, a protest following the examples set in the Arab world and Europe began in New York City, starting what would later be known as the Occupy Wall Street Movement.[148] The occupation continued through the month, facing increased police repression countered with growing numbers of supporters.[149] At the same time, Greece was facing growing domestic unrest as the Troika auditors were in Athens pressuring the government to meet ‘reform’ targets.[150]

By October of 2011, thousands were on the streets in Portugal,[151] over 700 Occupy Wall Street protesters were arrested on the Brooklyn Bridge,[152] and the Occupy Movement began spreading across the United States to dozens of other cities.[153] Tens of thousands of protesters continued to take to the streets of Athens, where they were met with the oppressive state apparatus in the form of riot police tear gassing Greek citizens.[154] In mid-October, Occupy Wall Street had become international, igniting Occupy protests and encampments across Europe and Canada.[155] On a global day of protest on October 15, there were demonstrations in roughly 951 different cities across 87 different countries.[156] Roughly 150,000 people marched in Rome, thousands marched toward Angela Merkel’s Chancellery office in Berlin, with several thousand more marching on the European Central Bank headquarters in Frankfurt,[157] as Germany experienced protests bringing out roughly 40,000 people in 50 different cities.[158] The German Finance Minister, Wolfgang Schauble, told the media that he was taking the protests “very seriously.”[159]

The Financial Times noted that protesters were “united in their loathing of bankers on both sides of the Atlantic,” and despite their different circumstances, they “find common ground in their outrage at the lack of economic opportunities and their alienation from mainstream politics.” The editorial warned politicians not to ignore the protests, as “failure to address these concerns would risk reinforcing the protesters’ sense of disengagement, transforming their alienation into a dangerous self-fulfilling prophecy.” The demands of most protesters were not “yet a rejection of capitalism,” many were simply expressing that they wanted “a more equitable share” in the benefits of the system. “It is therefore in everyone’s interest,” noted the editorial, “that their energy be directed into making capitalism work better rather than overturning it.”[160]

Martin Wolf in the Financial Times suggested that protesters were “raising some big questions,” but “for this to be the beginning of a new leftwing politics” there must be the emergence of “a credible new ideology.” In discussing the issue of inequality which was raised by the protests, Wolf wrote that while it would be “impossible to define an acceptable level of inequality,” it is ultimately “corrosive if those with wealth are believed to have rigged the game rather than won in honest competition.” Thus, with growing inequality, “the sense that we are equal as citizens weakens” while “democracy is sold to the highest bidder.” Wolf concluded: “The left does not know how to replace the market. But pro-marketeers still need to take the protests seriously. All is not well.”[161]

An Empire Under Threat

In 2012, Dominic Barton, the CEO of McKinsey & Company, the world’s largest consulting firm, wrote and published a small essay entitled, “Capitalism for the Long-Term”. Barton described the world since the global financial crisis began three years earlier, in which dramatic changes in power were taking place between the West and East (with the growth of Asia and the emerging market economies), as “a rise in populist politics and social stresses” combined with “significant strains on global governance systems.” These combinations would likely result in “increased geopolitical rivalries”, “security challenges”, and other “rising tensions.” The most important consequence of the crisis for the corporate oligarchy, however, was “the challenge to capitalism itself.” Barton noted that the crisis had “exacerbated the friction between business and society,” forcing leaders to confront “rising income inequality” and “understandable anger over high unemployment” as well as “a host of other issues.”[162]

A March 2013 report by the large Swiss bank, UBS, referred to social unrest as “a systemic phenomenon” which “is highly uncertain, complex and ambiguous,” warning that “it is highly likely to generate ripple effects into other sectors of the economy and society, possibly leading to the toppling of governments, or even political systems.”[163] A July 2013 report from the French insurance giant, AXA, reflected on protests and urban rebellions erupting in what were previously considered ‘stable’ emerging market nations, such as Turkey and Brazil. AXA’s Investment Managers report noted that many emerging market nations were “currently experiencing a surge in political risk due to social unrest,” the main cause of which “is the rise of the middle class in these countries.”[164]

The World Economic Forum published its report on Global Risks in 2014 just in time for its annual meeting, having prepared the report in collaboration large insurance giants and prestigious universities. The report noted that “the generation coming of age in the 2010s faces high unemployment and precarious job situations, hampering their efforts to build a future and raising the risk of social unrest.”[165] In general, it wrote, “the mentality of this generation is realistic, adaptive and versatile,” and while they are “full of ambition to make the world a better place,” they feel “disconnected from traditional politics and government.”[166]

The report cited a recent global opinion survey of youth which noted that young people “think independently” of past generations, and that this “points to a wider distrust of authorities and institutions.” Having witnessed the response of governments in the wake of the financial crisis, as well as the NSA Internet spying scandals, youth populations are increasingly alienated from authorities. “Anti-austerity movements and other protests give voice to an increasing distrust in current socio-economic and political systems,” said the report, as youth populations accounted for an “important” segment of the population which expressed their “general disappointment” with both “regional and global governance bodies such as the EU and the [IMF].” The report noted that the “digital revolution” had provided youth around the world with “unprecedented access to knowledge and information worldwide,” allowing them “to build abstract networks addressing single issues and place less importance on traditionally organized political parties and leadership.”[167] This youth population represented a “lost generation” who could fuel social unrest, “vulnerable to being sucked into criminal or extremist movements.”[168]

The global Mafiocracy was so concerned with growing unrest, protests and the potential for revolution, that the Rothschild banking dynasty itself organized a special conference on the subject. Hosted by Lady Lynn Forester de Rothschild, wife of Sir Evelyn de Rothschild, the ‘Conference on Inclusive Capitalism’ was held in the very exclusive Mansion House in London’s financial district, closed to the public and press. The May 2014 conference was exclusively for the world’s super-rich oligarchs, institutions and dynasties. Some 250 individuals were invited, collectively responsible for managing more than $30 trillion in assets, accounting for roughly one-third of the world’s investable wealth located in one room. As NPR noted, “If money is power, then this is the most powerful group of people ever to focus on income inequality.”[169]

Among the speakers at the Conference were Prince Charles; former President Bill Clinton (a close friend of Jacob and Lynn de Rothschild); Christine Lagarde, the managing director of the IMF; Mark Carney, the Governor of the Bank of England and a top international central banking official; Lionel Barber, an editor at the Financial Times; Dominic Barton of McKinsey & Co., as well as top executives from Honeywell, UBS, BlackRock, The Dow Chemical Company, Unilever, Google, GlaxoSmithKline and Prudential.[170]

“Now is the time to be famous or fortunate,” said the central banker Mark Carney. He told the assembled members of the Mafiocracy, “just as any revolution eats its children, unchecked market fundamentalism can devour the social capital essential for the long-term dynamism of capitalism itself.” In other words, the capitalist system was eating itself. “Capitalism loses its sense of moderation,” said Carney, “when the belief in the power of markets enters the realm of faith.” This kind of religious “radicalism came to dominate economic ideas and became a pattern of social behaviour,” and in the decades leading up to the global financial crisis, “we moved from a market economy to a market society.”[171]

Christine Lagarde, the managing director of the IMF, began her speech by discussing Karl Marx, “who predicted that capitalism, in its excesses, carried the seeds of its own destruction,” as “the accumulation of capital in the hands of a few” would lead “to major conflicts, and cyclical crises.” Lagarde warned that capitalism has increasingly “been associated with high unemployment, rising social tensions, and growing political disillusion.” Among the “main casualties,” she said, “has been trust – in leaders, in institutions, in the free-market system itself,” citing a recent poll which revealed that only one in five people “believed that government or business leaders would tell the truth on an important issue.” This, she explained, “is a wakeup call,” adding, “in a world that is more networked than ever, trust is harder to earn and easier to lose.”[172]

As the global Mafiocracy grows increasingly worried about the potential revolutionary implications of the “lost generation” of youth around the world, struggling to make their parasitic planetary system of Empire legitimate in the eyes of the citizens of the world, the youth are left behind, already written off as “lost.” Youth and young adults are better educated and have more access to information and communication than ever before in human history, yet their prospects for jobs, social elevation and opportunities appear increasingly grim and uneasy. Frustrated and furious youth have been the leading force behind the resistance movements, riots, rebellions and revolutions that have spread across much of the world in the wake of the global financial crisis, from Eastern Europe to the Middle East and North Africa, the European Union, to the streets of Ferguson and Baltimore in the United States.

Western ‘democratic’ society is becoming increasingly closed. It is evolving into a high-tech police and surveillance state. The United States government continues to wage a race war against the minority black population who are treated as an internally colonized population, with high rates of police repression and imprisonment. The political system is visibly ruled by parasites, with all the pomposity of the Roman Senate. The plutocrats have lavish and distant lives, segregated in their obscene wealth and unseen influence. The middle class is a debt-slave class, fueling consumption through credit, now in the slow and painful process of being exsanguinated of their economic vitality and opportunities. Some will rise to the higher ranks, but the rest will be pushed down to where the poor have always been. Increasingly, much larger segments of the American population will find themselves in similar circumstances as their fellow black, Hispanic, Indigenous and immigrant neighbours.

In this environment, the United States still sits at the center of global monetary, financial, economic and corporate power. The U.S. dollar remains the world’s reserve currency, and the country is still the largest economy. Through the process of integrating the increasingly rich and powerful nations of Latin America, the Middle East and Asia into the Empire of Economics, the stakes have become higher and the challenges greater, as the U.S. seeks to maintain its dominant position, and thus its ability to shape the changing global order. With many new players in the game of global power politics, there are more negotiations, consultations, forums for cooperation and frequent confrontations. As the United States and Europe increasingly aggravate Russia by expanding their empire to its border, the threat for economic competition to break out into actual warfare grows.

The human species is in a deeply precarious situation. As the Empire of Economics increasingly benefits the comparatively small global Mafiocracy at the expense of most of the world’s remaining 7 billion people, the economic and military structures of global empire are rapidly accelerating their devastation of the natural environment and ecosystem upon which all life on the planet depends. Human beings are confronted with a profound question: As we soar forward on our current path toward increased poverty, exploitation and environmental destruction, at what point do we begin to more directly question the legitimacy of the existing global system which determines the fate and direction of the species? As we face the increasing possibility of a mass extinction of our species over the coming century, as the democratic facades of modern society crumble and high-tech totalitarian police states rise in their place, there has perhaps never been a time in history where it was more essential for the people of the world to begin to create alternatives to the existing global system.

The concept of a truly global, transformative revolution in the organization of human society, power relations and purpose must be contemplated in a more serious, deliberate effort. This book hopes to encourage this discussion through an expanded understanding of the realities of global power politics, the ruling Mafiocracy and the Empire of Economics. A genuine global revolution is an absolute necessity. But far from promoting a mere ideological or philosophical alternative, this text hopes to encourage a more pragmatic approach to organizing resistance both outside and within the existing global order and its various institutions.

A dual strategy is required in operating outside the global hierarchy, experimenting with creative alternatives constructed from the bottom-up, while simultaneously playing the game of power politics to directly challenge the Empire of Economics in its own arena. Instead of dividing these efforts between those who advocate for revolutionary alternatives and those who encourage reformist initiatives, a more coherent and organized strategy should be invoked, establishing alternative forums, organizations and avenues of cooperation between revolutionaries and reformers. This serves multiple purposes, as it would allow for revolutionary movements to maintain contact and provide direction to reformers and new political parties, instead of leaving them to engage only with the existing power structures, thus increasing the chances that they may be co-opted by the Empire and undermine the efforts of revolutionary groups. Instead, revolutionary movements would be encouraged to co-opt and even control the direction and efforts of reformist groups and political parties.

Strategic thinking and planning should become commonplace among revolutionary movements and efforts. Debate, discussion, coordination and creative construction among opposition groups must increasingly come to replace division, derision, co-optation and ‘creative destruction’. For this to emerge, the initiative must be taken by revolutionary groups to create the organizations and opportunities to engage with each other and reformist groups, to create a space for cooperation and provide the impetus for strategic direction. Just as the Mafiocracy has created forums and institutions through which they engage and influence policy-makers, educational and media structures, so too must revolutionary groups form parallel systems with similar functions, but opposing objectives.

This task can effectively be pursued by the “lost generation” of global youth who can become capable of finding their own way, charting their own path, imagining and creating their own world. It could be a world in which the human species has a higher purpose beyond that of contributing to “economic growth,” with greater prospects beyond that of probable extinction. Nothing less than everything we have and everyone we know is at stake.

What is frightfully clear is that the Empire of Economics does not serve the collective interests of humanity and the planetary system upon which life depends. We must do this ourselves, individually and collectively. The worst that could happen is to try and fail, remaining where we currently stand. The best that could happen is nothing if not unknown and unforeseeable, but altogether possible, if we wish and work to make it so. The future may yet belong to the people of the world, but only if we empower ourselves in the present. So perhaps it is time to become properly acquainted with the unforgiving, brutal realities of power politics, empire and resistance.

Notes

[1] Memorandum of Conversation, 24 May 1975: Foreign Relations of the United States, 1973-1976, Vol. XXXI, Foreign Economic Policy, Document 292:

http://history.state.gov/historicaldocuments/frus1969-76v31/d292

[2] Memorandum of Conversation, 26 May 1975: Foreign Relations of the United States, 1973-1976, Vol. XXXI, Foreign Economic Policy, Document 294:
http://history.state.gov/historicaldocuments/frus1969-76v31/d294

[3] Niccolo Machiavelli, The Prince (Cambridge University Press, 1988), page 59.

[4] Memo by George Kennan, Head of the US State Department Policy Planning Staff. Written February 28, 1948, Declassified June 17, 1974. George Kennan, “Review of Current Trends, U.S. Foreign Policy, Policy Planning Staff, PPS No. 23. Top Secret. Included in the U.S. Department of State, Foreign Relations of the United States, 1948, volume 1, part 2 (Washington DC Government Printing Office, 1976), 509-529:

http://en.wikisource.org/wiki/Memo_PPS23_by_George_Kennan

[5] General Assembly, “Declaration on the Establishment of a New International Economic Order,” Resolution adopted by the General Assembly, United Nations, Resolution 3201 (S-VI), 1 May 1974:

http://www.un-documents.net/s6r3201.htm

[6] General Assembly, “Declaration on the Establishment of a New International Economic Order,” Resolution adopted by the General Assembly, United Nations, Resolution 3201 (S-VI), 1 May 1974:

http://www.un-documents.net/s6r3201.htm

[7] Charles R. Morris, “Old Money,” New York Times, 29 October 2006:

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[10] James D. Wolfensohn, Council on Foreign Relations Special Symposium in honor of David Rockefeller’s 90th Birthday, The Council on Foreign Relations, 23 May 2005: http://www.cfr.org/world/council-foreign-relations-special-symposium-honor-david-rockefellers-90th-birthday/p8133

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[30] Rowan Callick, “Keeping it in the family,” The Australian, 27 February 2014:

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[31] Jeremy Page, “Children of the Revolution,” Wall Street Journal, 26 November 2011:

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[33] “Turkish conglomerates: Too big to fail, but in a good way,” The Economist, 1 February 2014:

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[34] Marilyn Berger, “Harry Oppenheimer, 91, South African Industrialist, Dies,” New York Times, 21 August 2000:
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[35] James Crabtree, “Indian pioneers combine profitability and probity,” Financial Times, 2 February 2015:

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[36] Frederick E. Allen, “The Family Secret That Makes German Companies So Successful,” Forbes, 14 August 2012:

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[37] Ralph Atkins, “Archetypal family business head is wealthy but frugal,” Financial Times, 16 May 2007:

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[38] Stephen Evans, “Germany’s super-shy super-rich,” BBC, 28 July 2014:

http://www.bbc.com/news/magazine-28472884

[39] Fiona Govan, “BMW dynasty breaks silence over Nazi past,” The Telegraph, 29 September 2011:

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[40] “The mystery of the world’s second-richest businessman,” The Economist, 25 February 1999:

http://www.economist.com/node/187913

[41] William D. Cohan, “The Stockholder in the Sand,” Vanity Fair, 21 March 2013:

http://www.vanityfair.com/news/2013/03/myth-prince-alwaleed-bin-talal-saudi

[42] Berkshire Hathaway, Annual Report 2013, Page 16:

http://www.berkshirehathaway.com/2013ar/2013ar.pdf

[43] Jack Witzig and Pamela Roux, “Bill Gates Fattens Wealth Gap Over Slim as Cascade Surges,” Bloomberg, 29 March 2013:

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[44] Andy Coghlan and Debora MacKenzie, “Revealed – the capitalist network that runs the world,” New Scientist, 24 October 2011:

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[45] Andy Coghlan and Debora MacKenzie, “Revealed – the capitalist network that runs the world,” New Scientist, 24 October 2011:

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[46] Susanne Craig, “The Giant of Shareholders, Quietly Stirring,” New York Times, 18 May 2013:

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[48] Henny Sender and Dan McCrum, “BlackRock: Ahead of the Street,” Financial Times, 28 November 2012:

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[50] Andrew Gavin Marshall, “The Global Banking ‘Super-Entity’ Drug Cartel: The “Free Market” of Finance Capital,” Andrewgavinmarshall.com, 28 October 2012:

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[51] Theodore Draper, “Little Heinz And Big Henry,” New York Review of Books, 6 September 1992:

https://www.nytimes.com/books/98/12/06/specials/isaacson-kissinger.html

[52] Theodore Draper, “Little Heinz And Big Henry,” New York Review of Books, 6 September 1992:

https://www.nytimes.com/books/98/12/06/specials/isaacson-kissinger.html

[53] Remembrances, Words of Commemoration: Memorial Service for Nelson Rockefeller, 2 February 1979:

http://www.henryakissinger.com/eulogies/020279.html

[54] Judith Miller, “Kissinger Co.,” New York Times, 26 May 1979.

[55] Gerald Caplan, “Toronto welcomes Henry Kissinger, accused war criminal,” Globe & Mail, 3 June 2011:

http://www.theglobeandmail.com/globe-debate/munk-debates/toronto-welcomes-henry-kissinger-accused-war-criminal/article4192522/;

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http://www.salon.com/2015/04/17/the_ivy_leagues_favorite_war_criminal_why_the_atrocities_of_henry_kissinger_should_be_mandatory_reading/;

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Christopher Hitchens, “Kissinger Declassified,” Vanity Fair, December 2004:

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http://www.alternet.org/world/top-10-most-inhuman-henry-kissinger-quotes;

Christopher Hitchens, “Kissinger Declassified,” Vanity Fair, December 2004:

http://www.vanityfair.com/news/2004/12/hitchens200412;

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[59] Judith Miller, “Kissinger Co.,” New York Times, 26 May 1979.

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World of Resistance Report: Inequality, Injustice and the Coming Unrest

World of Resistance Report: Inequality, Injustice and the Coming Unrest

By: Andrew Gavin Marshall

Originally posted at Occupy.com

26 June 2014

income-inequality-slide

In Part 1 of the World of Resistance (WoR) Report, I examined today’s global order – or disorder – through the eyes of Zbigniew Brzezinski, a former U.S. National Security Adviser and long-time influential figure in foreign policy circles. Brzezinski articulated what he refers to as humanity’s “global political awakening,” spurred by access to education, technology and communications among much of the world’s population.

Brzezinski has written and spoken extensively to elites at American and Western think tanks and journals, warning that this awakening poses the “central challenge” for the U.S. and other powerful countries, explaining that “most people know what is generally going on… in the world, and are consciously aware of global iniquities, inequalities, lack of respect, exploitation.” Mankind, Brzezinski said in a 2010 speech, “is now politically awakened and stirring.”

But Brzezinski is hardly the only figure warning elites and elite institutions about the characteristics and challenges of an awakened humanity. The subject of inequality – raised to the central stage by the Occupy movement – has become a fundamental feature in the global social, political and economic discussion, as people become increasingly aware of the facts underlying the stark division between the haves and have nots. While inequality is both a source and a result of the concentration of power in the hands of a few, it also represents the greatest threat to those very same power structures and interests.

As many if not most of us are by now aware, the global state-capitalist system is run by a relatively small handful of powerful institutions, groups and individuals who collectively control the vast majority of planetary wealth and resources. Banks, corporations, family dynasties and international financiers like the IMF and World Bank form a highly interconnected, interdependent network we now think of as the global oligarchy.

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Thomas Pogge explained in the Georgia Journal of International and Comparative Law that in the 20 years following the end of the Cold War, there were roughly 360 million preventable poverty-related deaths – more than all of the deaths in all of the wars of the 20th century combined. By 2004, over 1 billion people remained “chronically undernourished” and nearly a billion lacked access to clean drinking water and shelter. Roughly 1.6 billion lacked access to electricity while 218 million children were working as cheap labour.

Pogge noted that almost half of humanity – roughly 3.5 billion people – lived on less than $2.50 a day, and that all of these people could be lifted out of poverty with an expenditure $500 billion, which is roughly two-thirds of the annual U.S. Pentagon budget.

Preceding the statistics that would get popularized with the Occupy movement, Pogge asserted that the top 1% owned approximately 40% of global wealth while the bottom 60% of humanity owned less than 2%. “We are now at the point where the world is easily rich enough in aggregate to abolish all poverty,” Pogge wrote. “We are simply choosing to prioritize other ends instead.”

Still today, every year, approximately 18 million people – half of whom are children under the age of five – die from poverty-related causes, all of which are preventable. Seen through this lens, poverty, and by definition, inequality, has become the greatest purveyor of violence, death and injustice on Earth.

Meanwhile, the international charity Oxfam noted that the 100 richest people in the world made a combined 2012 fortune of $240 billion – enough to lift the world’s poorest out of poverty four times over. In the previous 20 years, the world’s richest 1% increased their income by 60%, perpetuating a system of extreme wealth which is, according to an Oxfam executive, “economically inefficient, politically corrosive, socially divisive and environmentally destructive.”

Not only that, a former chief economist for McKinsey & Company published data in 2012 for the Tax Justice Network that reported the world’s super rich had hidden between $21 and $32 trillion in offshore tax havens – a trend that has been increasing in the past three decades to reveal that inequality is “much, much worse than official statistics show.”.

In early 2014, Oxfam released a report revealing that the world’s 85 richest individuals had a combined wealth equal to the collective wealth of the world’s poorest 3.5 billion people – approximately $1.7 trillion. Meanwhile, the world’s top 1% own roughly half the world’s wealth, at $110 trillion. Oxfam noted: “This massive concentration of economic resources in the hands of fewer people presents a significant threat to inclusive political and economic systems… inevitably heightening social tensions and increasing the risk of societal breakdown.”

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What Does All the Inequality Mean in Terms of Instability?

Where there is great inequality, there is great injustice and where there is great injustice, there is the inevitability of instability. This relationship, between inequality and instability, has not gone unnoticed by the world’s oligarchs and plutocratic institutions. The potential for “social unrest” has gotten especially high since the onset of the global financial and economic crisis that began in 2007 and 2008.

The head of the OECD warned in 2009 that the world’s leading economies would have to take quick action to resolve the global crisis or face a “fully blown social crisis with scarring effects on the vulnerable workers and low-income households.”

The major credit ratings agency Moody’s warned back in 2009 that the growing debts among nations would “test social cohesiveness” as investors demanded countries impose still more painful austerity measures, leading to growing “political and social tension” and “social unrest.” In February of that same year, the Director-General of the World Trade Organization (WTO) warned that following the economic crisis, many nations were “going to be confronted by unrest and inter-religious and inter-ethnic conflicts.”

Brzezinski himself said:, “There’s going to be growing conflict between the classes and if people are unemployed and really hurting, hell, there could even be riots.” And meanwhile, the top-ranking U.S. military official and Chairman of the Joint Chiefs of Staff, Admiral Mike Mullen, commented that the global financial crisis was a greater security concern to the U.S. than either of the massive ground wars in Iraq or Afghanistan. “It’s a global crisis,” he said, and “as that impacts security issues, or feeds greater instability, I think it will impact our national security in ways that we quite haven’t figured out yet.”

Mullen’s point was reiterated by U.S. intelligence director Dennis Blair, who warned Congress that the global crisis was “the primary near-term security concern” for the U.S., adding that “the longer it takes for the recovery to begin, the greater the likelihood of serious damage to U.S. strategic interests.” Blair noted that as a result of the crisis, roughly 25% of the world’s nations had already experienced “low-level instability such as government changes.” If the crisis persisted beyond two years, Blair noted, there was a potential for “regime-threatening instability.” U.S. intelligence analysts were also fearful of a “backlash against U.S. efforts to promote free markets because the crisis was triggered by the United States.”

In November of 2008, the U.S. Army War College produced a document warning that the U.S. military must be prepared for the possibility of a “violent strategic dislocation inside the United States,” possibly caused by an “unforeseen economic collapse” and/or a “purposeful domestic resistance” and the “loss of functioning of political and legal order.” Under “extreme circumstances,” the document warned, “this might include the use of military force against hostile groups inside the United States.”

In 2009, the British spy agency MI5, along with the British Ministry of Defence, were preparing for the potential of civil unrest to explode in Britain’s streets as a result of the economic crisis, [noting](http://www.express.co.uk/posts/view/86981/MI5-alert-on-bank-riot> that there was a possibility the state would deploy British troops in major cities.

A December 2009 article in The Economist warned that increased unemployment and poverty along with “exaggerated income inequalities” following the global economic crisis made for a “brew that foments unrest.” In October of 2011, the International Labour Organizationwarned in a major report that the jobs crisis resulting from the global economic crisis “threatens a wave of widespread social unrest engulfing both rich and poor countries,” and pointed out that 45 of the 118 countries studied already saw rising risks of unrest, notably in the E.U., Arab world and Asia.

In June of 2013, the same ILO warned that the risks of social unrest including “strikes, work stoppages, street protests and demonstrations,” had increased in most countries around the world since the economic crisis began in 2008. The risk was “highest among the E.U.-27 countries,” it noted, with an increase from 34% in 2006-2007 to 46% in 2011-2012. The most vulnerable nations in the E.U. were listed as Cyprus, Czech Republic, Greece, Italy, Portugal, Slovenia and Spain, a fact “likely due to the policy responses to the ongoing sovereign debt crisis and their impact on people’s lives and perceptions of well-being.”

The E.U.’s “bleak economic scenario has created a fragile social environment as fewer people see opportunities for obtaining a good job and improving their standard of living,” warned the ILO, and advanced economies were “going to suffer a lost decade of jobs growth.”

An October 2013 report by the International Federation of Red Cross and Red Crescent Societies warned that the long-term consequences of austerity policies imposed by E.U. governments “will be felt for decades even if the economy turns for the better in the near future.” The report noted: “We see quiet desperation spreading among Europeans, resulting in depression, resignation and loss of hope… Many from the middle class have spiraled down to poverty.”

The study further reported “that the rate at which unemployment figures have risen in the past 24 months alone is an indication that the crisis is deepening, with severe personal costs as a consequence, and possible unrest and extremism as a risk. Combined with increasing living costs, this is a dangerous combination.”

In November 2013, The Economist reported: “From anti-austerity movements to middle-class revolts, in rich countries and in poor, social unrest has been on the rise around the world.” While there are various triggers – from economic distress (Greece and Spain) to revolts against dictatorships (the Arab Spring) to the growing aspirations of middle class populations (Turkey and Brazil), “they share some underlying features,” the magazine reported. The common feature, it noted, “is the 2008-09 financial crisis and its aftermath,” and an especially important factor sparking unrest in recent years was “an erosion of trust in governments and institutions: a crisis of democracy.”

A sister company of The Economist, the Economist Intelligence Unit (EIU), measured the risk of social unrest in 150 countries around the world, with an emphasis on countries with institutional and political weaknesses. The EIU noted that “recent developments have indeed revealed a deep sense of popular dissatisfaction with political elites and institutions in many emerging markets.” Indeed, the decline in trust has been accelerating across the developed world since the 1970s. The fall of Communist East European regimes in 1989 eroded that trust further, and the process sped up once again with the onset of the global financial crisis.

According to EIU estimates, roughly 43% (or 65) of the countries studied were considered to be at “high” or “very high” risk of social unrest in 2014. A further 54 countries were considered to be at “medium risk” and the remaining 31 were considered “low” or “very low.” Comparing the results to a similar study published five years previously, an additional 19 countries have been added to the “high risk” category.

Among the countries considered a “very high risk” for social unrest in 2014 were Argentina, Bahrain, Bangladesh, Bosnia, Egypt, Greece, Lebanon, Nigeria, Syria, Uzbekistan, Venezuela, Yemen and Zimbabwe. Among the countries in the “high risk” category were Algeria, Brazil, Cambodia, China, Cyprus, Ethiopia, Guatemala, Haiti, Honduras, Iran, Jordan, Laos, Mexico, Morocco, Nicaragua, Pakistan, Peru, the Philippines, Portugal, South Africa, Spain, Tunisia, Turkmenistan, Turkey and Ukraine.

It doesn’t take demonstrators filling the streets to tell us that inequality breeds instability. While many factors combine under different circumstances to lead to “social unrest,” inequality is almost always a common feature. Injustice, poor governance, corruption, poverty, exploitation, repression and corrosive power structures all support and are supported by underlying conditions of inequality. And as inequality is no longer a local, national or regional phenomenon but a global one, so too is the “threat” of instability that the world’s elite financial, media and think-tank institutions are now so busy warning about. So long as inequality increases, so will instability. Resistance, and even revolution, are the new global reality.

Andrew Gavin Marshall is a 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.

 

Global Power Project, Part 5: Banking on Influence With Goldman Sachs

Global Power Project, Part 5: Banking on Influence With Goldman Sachs

By: Andrew Gavin Marshall

Originally posted at Occupy.com

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Part 1: Exposing the Transnational Capitalist Class

Part 2: Identifying the Institutions of Control

Part 3: The Influence of Individuals and Family Dynasties

Part 4: Banking on Influence with JPMorgan Chase

Anyone who has paid even minimal attention to the global economic and financial crises gripping the world since 2007 has heard the name Goldman Sachs.

One of the largest banks in the United States, Goldman Sachs was central to the process of creating the housing bubble that popped in 2007-8, which led to the largest economic crisis since the Great Depression. As Matt Taibbi famously documented in Rolling Stone, Goldman has been involved in “every major market manipulation since the Great Depression,” profiting along the way as “a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.”

Let’s go back to a little history.

In 2006 and 2007, as Goldman was selling high risk securities on home mortgages worth $40 billion, it was simultaneously betting against the housing market, ensuring that as the housing market crashed, the bank would make a significant profit. Thus, “the nation’s premier investment bank pass[ed] most of its potential losses to others before a flood of mortgage defaults staggered the U.S. and global economies.”

In late 2007, as the mortgage crisis was accelerating, executives at Goldman Sachs sent each other emails explaining that they would make “some serious money” betting against the housing market. Like a self-fulfilling prophecy, the bank helped the market crash harder and faster.

A U.S. Senate investigation into Goldman Sachs concluded that the bank “profited from the financial crisis [which it helped cause] by betting billions against the subprime mortgage market, then deceived investors and Congress about the firm’s conduct,” and referred the Securities and Exchange Commission (SEC) and the U.S. Justice Department to investigate the bank for criminal or civil action.

As Goldman’s CEO Lloyd Blankfein himself stated: “We focused a lot of ourselves on trying to benefit from the crisis that happened… we were going to use that opportunity to make ourselves a better firm.”

In 2012, however, President Obama’s Justice Department announced that it would not pursue criminal charges against the bank. This, after the bank received over $12 billion in bailouts from the U.S. government to save the bank from the crisis that it created and profited from.

This, after Goldman Sachs helped create the Greek debt crisis for which entire populations of European countries are being punished into poverty while allowing the bank (among other banks) to continue to profit from the deepening depression and crisis in Europe.

This, after Goldman Sachs (along with other investment banks) helped create a global food crisis by speculating on food prices, sending the prices sky-high, then making immense profits while tens of millions of people around the world were pushed into hunger and starvation.

Obama’s decision not to prosecute the bank, of course, had nothing to do with the fact that Goldman Sachs was one of the top contributors to the Obama campaign in 2008 and again to his re-election campaign in 2012.

CEO Blankfein turned more heads when he told CBS News in November of 2012: “You’re going to have to undoubtedly do something to lower people’s expectations – the entitlements and what people think that they’re going to get, because it’s not going to – they’re not going to get it.” Suggesting that benefits like social security, Medicare and Medicaid were providing too much “support” to everyday people, Blankfein explained that “entitlements have to be slowed down and contained… because we can’t afford them.”

Apparently, the fact that Goldman Sachs received more than $10 billion in government welfare in exchange for its role helping to create a national and global financial crisis did not strike Blankfein as hypocrisy. The lesson he imparted: there is plenty of money to support the bank but not old-age pensioners. Because as Blankfein lectured the public about its need to “lower expectations” and lose its social benefits, bonuses for Wall Street executives were going up, with Goldman Sachs’s bonuses and salaries for 2012 topping $13 billion.

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Goldman’s Reach into Other Institutions

For the Global Power Project, we examined a total of 83 individuals at Goldman Sachs, including executives, the board of directors, and several advisory boards. The most highly represented institution was Harvard University, where 12 (or 14%) of the 83 individuals hold leadership positions.

Following Harvard was the Council on Foreign Relations, where 10 Goldman Sachs representatives are members. The University of Pennsylvania and the World Economic Forum each have five individuals sharing leadership positions with the bank; four individuals are affiliated with the Bilderberg Meetings, four with Columbia University; and three with the Federal Reserve Bank of New York, the Brookings Institution, Rockefeller University, the Nature Conservancy, the Securities Industry Association, and the World Bank.

And the list goes on from there, as Goldman Sachs shares two individual leadership positions or affiliations with Tsinghua University, Cornell University, the Partnership for New York City, Wal-Mart, the Aspen Institute, New York University, Fannie Mae, Yale University, the Carnegie Endowment for International Peace, the American Academy of Arts and Sciences, Credit Suisse, Oxford, Barnard College, Prudential, the Bank of England, EastWest Institute, the London School of Economics, the Trilateral Commission, DiamlerChrysler, the OECD, the Central Park Conservancy, the Museum of Modern Art, Caterpillar, the International Rescue Committee and the Asia Society. The bank also includes two former European Commissioners.

Goldman Sachs shares one leadership position – past or presently – with the following institutions: the Financial Services Forum, Catalyst, the Monetary Authority of Singapore, Stanford, Investor AB, Stockholm School of Economics, the President’s Foreign Intelligence Advisory Board, George W. Bush’s National Economic Council, ExxonMobil, Novartis, Honeywell International, Target, UnitedHealth Group, Perseus, EADS, PepsiCo, Royal Philips Electronics, Zurich Financial, PricewaterhouseCoopers, BP, Allianz, European Round Table of Industrialists, Royal Bank of Scotland, HSBC, Siemens, the Bank of Spain, IMF, the Group of Thirty, the Population Council, the European Central Bank, Princeton, Soros Fund Management, New York Stock Exchange, the Ford Foundation, Google, BHP Billiton, and the People’s Bank of China, among many others.

Meeting the Elites

There are several individuals holding leadership positions with Goldman Sachs who represent what we refer to as the global ruling class – or global plutocracy – by virtue of their multiple positions on numerous boards and advisory groups, think tanks, educational institutions, and other important institutions of influence, giving them unparalleled access to policy-makers around the world.

Let’s start with Goldman CEO Lloyd Blankfein, who has been chairman and CEO of the bank since 2006, and who is also a member of the Dean’s Advisory Board of Harvard Law School, a member of the Dean’s Council of Harvard University and is a member of the Advisory Board of Tsinghua University School of Economics and Management. Blankfein is also a member of the Board of Overseers of Weill Medical College at Cornell University, the board of directors of the Partnership for New York City, and is a member of the Council on Foreign Relations and the International Advisory Committee of the Federal Reserve Bank of New York. He is additionally a member of the board of Catalyst, Chairman of the Financial Services Forum and is a member of the International Advisory Panel of the Monetary Authority of Singapore.

Stephen Friedman is on the board of directors of Goldman Sachs and has been Chairman of Stone Point Capital since 2005. He was previously Chairman of President George W. Bush’s Intelligence Advisory Board and Intelligence Oversight Board from 2006 to 2008, and was Chairman of the Federal Reserve Bank of New York between 2008 and 2009. Friedman was also the Assistant to the President for Economic Policy and Director of the National Economic Council in George W. Bush’s White House from 2002 to 2004, and was previously the Chairman of Goldman Sachs. He is a Trustee of the Memorial Sloan-Kettering Cancer Center, a Trustee of Columbia University, a Trustee of the Aspen Institute, a former director of Wal-Mart and Fannie Mae, and is a member of the board of advisers of the Center for New American Security and the board of directors of the Council on Foreign Relations.

Also on the board of Goldman Sachs is Lakshmi N. Mittal, a director of ArcelorMittal, the world’s largest steel company, and is also a director of the European Aeronautic Defense and Space Company (EADS) N.V., as well as a member of the International Business Council of the World Economic Forum. He is a member of the Advisory Board of the Kellogg School of Management, a member of the Executive Committee of the World Steel Association, a member of the Foreign Investment Council of the Government of Kazakhstan, a member of the Indian Prime Minister’s Global Advisory Council, a member of the International Advisory Board to the President of Mozambique, and a member of the Domestic and Foreign Investors Advisory Council to the President of the Ukraine.

The Chairman of Goldman Sachs International is Peter D. Sutherland, former Attorney General of Ireland from 1981 to 1984, who was European Commissioner for Competition Policy in the EU from 1985 to 1989, after which he was Chairman of Allied Irish Banks from 1989 to 1993. Between 1990 and 1995, Sutherland was Chairman of the European Institute of Public Administration, and was the Director-General of the General Agreement on Tariffs and Trade (GATT) from 1993 and the first Director-General when it became the World Trade Organization (WTO), which he led until 1995. Sutherland was the Chairman of BP from 1997 to 2009, the former CEO of Ericsson, a former Director of the Royal Bank of Scotland, and former Chairman of the General Assembly and President of the Advisory Council of the European Policy Center. Sutherland was additionally the former European Chairman of the Trilateral Commission from 2000 to 2009, and remains at the Trilateral Commission as a member and Honorary European Chairman. He was previously the Vice Chairman of the European Round Table of Industrialists, from 2006 to 2009. He is a member of the Foundation Board of the World Economic Forum, the Supervisory Board of Allianz SE, a member of the boards of BW Group and Koc Holding, and President of the Federal Trust. He is a former member of the Council of International Advisors to the Chief Executive of Hong Kong, ia member of the Board of Directors Emeriti of the European Institute, and is on the International Advisory Board of BritishAmerican Business. Sutherland is also the Special Representative of the Secretary-General of the UN for Migration and Development and has been the Consultor of the Extraordinary Section of the Administration of the Patrimony of the Apostolic See (financial adviser to the Pope).

Senator Judd Gregg, a member of the International Advisory Board of Goldman Sachs, is a former member of the U.S. House of Representatives from 1980 to 1988, former Governor of New Hampshire from 1989 to 1993, and a U.S. Senator from 1993 to 2011. As a Senator, Gregg was the Chief Negotiator for the Emergency Economic Stabilization Act of 2008 (the bailout bill), and is a member of President Obama’s Bipartisan National Commission on Fiscal Responsibility and Reform. He is also a Senior Adviser to New Mountain Capital, and is on the boards of IntercontinentalExchange and Honeywell International.

Another member of Goldman Sachs’ International Advisory Board is Lord Griffiths of Forestfach, a member of the British House of Lords and member of the board of directors of Times Newspaper Holdings Ltd and Telereal Trillium. He is Vice Chairman of Goldman Sachs International, was a former Professor at the London School of Economics, former Dean at City University Business School, and was a director of the Bank of England from 1983 to 1985. Between 1985 and 1990, he was the head of Prime Minister Margaret Thatcher’s Policy Unit, where he “was a chief architect of the government’s privatization and deregulation programs.” In 2009, following a record-breaking $22 billion that was given out to Goldman Sachs executives and leadership in payment and bonuses, Lord Griffiths told a British audience that they should “tolerate the inequality as a way to achieve greater prosperity for all.”

Victor Halberstadt, a member of the International Advisory Board of Goldman Sachs, is also a Professor of Economics at Leiden University in the Netherlands, and former Crown-Member of the Netherlands Social-Economic Council. He is former Chairman of the International Advisory Board of DiamlerChrysler, former advisor to the Secretary-General of the OECD, former member of the Council on Defence for the Government of the Netherlands, and former Informateur to the Queen of the Netherlands, as well as the former President of the International Institute of Public Finance. Halberstadt is a former Honorary Secretary-General of the Bilderberg Meetings, where he remains as a member of the Steering Committee, and is a director of ING Group, Stork, DiamlerChrysler, KPN and PA Consulting Group. He is a member of the board of Koc University, the Lee Kuan Yew School for Public Policy in Singapore, and a member of the Board of Trustees of the Population Council. He is additionally Chairman of the Board of the American European Community Association (AECA), a member of the board of the Netherlands Opera and is a member of the Faculty of the World Economic Forum.

A Senior Director of Goldman Sachs is John C. Whitehead, who was former U.S. Deputy Secretary of State in the Reagan administration from 1985 to 1989, the founding Chairman of the Lower Manhattan Development Corporation, and was an employee, partner, Co-Chairman and Senior Partner for Goldman Sachs between 1947 and 1976. He is a former member of the board of directors of the New York Stock Exchange, former Chairman of the Securities Industry Association, former Chairman of the Board of the Federal Reserve Bank of New York, former Chairman of the United Nations Association, the International Rescue Committee, International House, the Andrew W. Mellon Foundation, and former Chairman of the Harvard Board of Overseers. Whitehead is an Honorary Life Trustee and former Chairman of the Asia Society, Chairman Emeriti of the International Rescue Committee, a former director of the Nature Conservancy, a board member emeriti of the Watson Institute for International Studies and a director emeriti of the EastWest Institute. He is former Chairman of the Hungarian-American Enterprise Fund, a former member of the Steering Committee of the Bilderberg Meetings, Chair Emeriti of the Brookings Institution, a Commissioner of the Global Commission on Drug Policy, a member of the board of the National September 11th Memorial and Museum at the World Trade Center and is a member of the Council on Foreign Relations.

It’s not surprising that with individuals like Stephen Friedman, Peter Sutherland and John C. Whitehead holding leadership positions with Goldman Sachs, the bank has established a highly influential network of affiliations with some of the world’s major institutions and policy-makers. The “vampire squid” has indeed spread its tentacles far beyond mere financial influence; through its affiliations with global plutocrats who serve on its boards, Goldman is a cosmopolitical conglomerate with ever-expansive power.

Even mother nature can’t seem to take on Goldman Sachs. When Hurricane Sandy hit New York City in November of 2012, power was knocked out for more than 1 million New Yorkers. But the bank’s 200 West Street headquarters were shining bright, “lights glowing and music playing.” With heaps and sandbags surrounding the building and generators running, Goldman sent off a lone, ominous blue glow into the stormy night: a symbol to all that even in the worst of circumstances, amid a sea of human suffering, Goldman Sachs remains ever present, lights on…doing business and making money.

Andrew Gavin Marshall is a 26-year old independent researcher and writer based in Montreal, Canada. He is Project Manager of The People’s Book Project, head of the Geopolitics Division of the Hampton Institute, the research director of Occupy.com’s Global Power Project, and has a weekly podcast with BoilingFrogsPost.

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“A Lot of People Believe This Stuff”: Bill Clinton, Barack Obama, and the Politics of Public Relations

“A Lot of People Believe This Stuff”: Bill Clinton, Barack Obama, and the Politics of Public Relations

By: Andrew Gavin Marshall

“Political language… is designed to make lies sound truthful and murder respectable, and to give an appearance of solidity to pure wind.” – George Orwell, “Politics and the English Language,” 1946

“It’s important, because a lot of people believe this stuff.”  – Bill Clinton, speaking at the Democratic National Convention, 5 September 2012

In case you were unaware, Bill Clinton gave a speech at the Democratic National Convention on the evening of September 5, which, the media tells us, revealed Clinton’s “special gift”[1] to “give a boost to Obama’s middle-class hero image.”[2] The speech has been hailed as Clinton’s “come back,”[3] and a “spirited defense” of Obama..[4] The “rock star,”[5] Bill Clinton, received heaps of praise from celebrities who endorsed his speech, and it’s obviously very important that the public know what Whoopi Goldberg, Chris Rock, and Alicia Silverstone think of the speech, so lucky for us, the media tells us. It was, “fantastic… common sense,” that Clinton was “up there teaching,” and “breaking it down.”[6]

But it’s also important that the public receive more ‘expert’ analysis from political commentators and reporters, so CNN reporter Wolf Blitzer explained that he had been watching Clinton since 1992 when he was CNN’s White House correspondent, and that, “[t]his may have been the best speech I have ever heard Bill Clinton deliver,” while GOP strategist Alex Castellanos proclaimed, “This will be the moment that probably re-elected Barack Obama.” Brit Hume on Fox News (“fair and balanced”) said that Clinton, “is the most talented politician I’ve ever covered and the most charming man I’ve ever met… No one in my view can frame an argument more effectively than he can.” Anderson Cooper shared his wisdom and analysis, explaining that, “[t]he level of detail in the speech was quite surprising… and yet there was a personality.” Chris Matthews on MSNBC chimed in, “I wouldn’t want to be the guy fighting Bill Clinton if the issue is Barack Obama.” But of course, there was some “intelligent criticism” of the speech within the media, so it wasn’t all praise. For example, John King of CNN noted that the speech could “use an editor,” because as various other critics noted, it was “too long.”[7]

So what exactly did Bill Clinton say that was so inspiring and praiseworthy? Well, he went up on stage, and for fifty minutes, successfully achieved the highest degree of hypocrisy possible. His speech could not have been better constructed if it had been written by a public relations firm, itself. And perhaps it was. After all, it’s not that the Clinton’s don’t have a cozy relationship with public relations firms, as Burson-Marsteller, the most prominent PR firm in the United States, ran Hillary Clinton’s failed presidential campaign in 2008.[8] The firm is venerable and highly respected, and has built a very prominent resume of individuals and institutions it has represented, such as Ceausescu in Romania, the Saudi royal family, the Nigerian government when it wanted to discredit claims of genocide during the Biafran war, the Argentine dictatorship which killed roughly 35,000 of its own people, the Indonesian government as it committed genocide in East Timor (ultimately eliminating a third of the entire population while Bill Clinton armed it to do so). Burson-Marsteller also represented Union Carbide following the Bhopal gas leak that killed 15,000 people in India, among other reputable clients.[9]

Controlling the “Bewildered Herd” of “Ignorant and Meddlesome Outsiders”

I mention the public relations industry, because elections are essentially run by the PR industry, and public relations is the officially-sanctioned term for “propaganda.” It is no small coincidence that the founder of the public relations industry, a man named Edward Bernays, also happened to have literally written the book on Propaganda (1928), in which he wrote, “The conscious and intelligent manipulation of the organized habits and opinions of the masses is an important element in democratic society. Those who manipulate this unseen mechanism of society constitute an invisible government which is the true ruling power of our country.” He added: “it remains a fact that in almost every act of our daily lives, whether in the sphere of politics or business, in our social conduct or our ethical thinking, we are dominated by the relatively small number of persons… who understand the mental processes and social patterns of the masses. It is they who pull the wires which control the public mind, who harness old social forces and contrive new ways to bind and guide the world.” Naturally, explained Bernays, this is merely “a logical result of the way in which our democratic society is organized.”[10]

Bernays of course had experience. In 1917, he was asked by President Woodrow Wilson to join the Committee on Public Information (CPI), a propaganda agency created by the government to rally the American population to support entering World War I, which was popularly perceived at the time as “a rich man’s war.” The CPI was highly successful, and the American people went to war. Bernays and the other propagandists who were involved were so impressed with their manipulation of the public during war-time, that they felt they could do it during peace time as well. Thus, after the war, Bernays soon founded one of the first PR firms in the United States. Walter Lippmann, the most influential intellectual in the United States at that time, encouraged President Wilson to create the CPI, and even suggested the concept of “making the world safe for democracy,” which became Wilson’s “idealistic” democratic vision for the world, still discussed in political science today. Lippmann and other intellectuals of the era recommended using social scientists and other intellectual elites to undertake “systematic intelligence and information control” as a “regular organ of popular government.” This was what Lippmann called the “manufacture of consent.”[11]

Lippmann wrote that, “propaganda, as the advocacy of ideas and doctrines, has a legitimate and desirable part to play in our democratic system.” Harold Lasswell, another leading political scientist of the era, wrote that, “[p]ropaganda is surely here to stay.” In his 1922 book, Public Opinion, Lippmann wrote that for the “manufacture of consent,” society needed “intelligence bureaus” or “observatories” which would distribute “disinterested” information to journalists, governments, businesses, and the society at large. This essentially is the function of think tanks and PR firms. The term “disinterested” is used to refer to the concept that the information and ideas are not shaped by emotional, irrational, or utopian concepts like “morality” or “ethics,” they are simply facts without a perceived ideology.[12]

In his 1925 book, The Phantom Public, Lippmann defined democracy for the modern state-capitalist system, which would not only be firmly entrenched within the United States, but exported around the world. Lippmann was quite emphatic: “A false ideal of democracy can lead only to disillusionment and to meddlesome tyranny.” That “tyranny,” of course, was the public interfering in the affairs of the state. Lippmann wrote that, “the public must be put in its place… so that each of us may live free of the trampling of a bewildered herd.” Referring to the public as “interested spectators of action,” Lippmann explained that, “the opinions of the spectators must be essentially different from those of the actors,” designed in such a way that the rulers of society – the corporate-financial elite and the intellectuals that serve them – would be able to continue controlling society with “the least possible interference from ignorant and meddlesome outsiders.” What Lippmann recommended in 1922 as the “manufacture of consent,” Bernays recommended in 1923 as “the engineering of consent.” Engineering consent, Bernays later wrote in 1947, “affects almost every aspect of our daily lives.” He explained: “When used for social purposes, it is among our most valuable contributions to the efficient functioning of modern society.”[13]

Presidents and politicians are products of public relations. We are presented with officially sanctioned concepts of democracy, politics, and ideology. We are subsequently given a ‘choice’ between – usually two – different accepted views. This is called “balance.” The difference between the views are primarily tactical, but the fundamentals remain the same. Thus, no matter the political party in power, war and empire are on the agenda, but different views can proliferate on the tactics and assessment of the results of imperial policies. Imperialism itself cannot be questioned, or even acknowledged; it’s simply accepted. The same goes for serving the interests of the corporate and financial elite, which of course are the main actors in determining foreign imperial policy itself. Imperialism and war for the benefit of a parasitic economic and financial elite, however, is not something which the public could openly accept, so we are given different words, definitions, and mythologies of our society and its policies, so that the “invisible governors” – as Bernays referred to them – may continue to “manufacture consent” to the system; thus maintaining ‘social order’, which means to maintain the social hierarchy of power.

Idealistic Democracy in the Land of Simplistic Hypocrisy

When we discuss Woodrow Wilson as president, we give warm and boisterous praise to his “enlightened” vision of “democratic idealism.” In fact, so consistent and engrained is our officially sanctioned respect for Woodrow Wilson’s profound vision, that it was given a special name: “Wilsonian idealism” or “Wilsonian liberalism,” to “make the world safe for democracy.” It was conceived of as a kind of “internationalist” vision for world order predicated on “international cooperation and integration,” countering political realism which viewed the international arena as one of anarchy where states act in their own self-interest.[14]

Wilson of course, was not concerned with acting in “self-interest,” because he had an enlightened vision of “liberal idealism.” No doubt it was this “idealism” upon which Wilson based his invasions and occupations of Haiti and the Dominican Republic, literally sending the Marines into the Parliament to disband it at gunpoint, killing tens of thousands of Haitians and crushing a liberation struggle in the country-side, and re-writing the constitution to allow American corporations to control the resources and buy land. In fact, Franklin D. Roosevelt, another democratic “idealist” president, was the Assistant Secretary of the Navy during the Haitian occupation (which began in 1915 and lasted until the Roosevelt administration in 1934). FDR took credit for writing the Haitian constitution, and claimed that he was responsible for “running several Caribbean republics.” Roosevelt referred to the Haitian occupation and his work on the new constitution as “an excellent piece of constructive work,” for which “the world ought to thank us.” He explained the common view of elites toward the general population – foreign and domestic – when he explained that in relation to Latin Americans, “You have to treat them like children.” The American media, with the New York Times at the helm, praised the ruthless occupation as a way for America to “advance” the Haitians, who were “a horde of naked niggers.” Wilson’s Secretary of State William Jennings Bryan reflected on his profound knowledge of Haitians when he stated, “Dear me, think of it! Niggers speaking French.”[15]

Wilson occupied the Dominican Republic in 1916, the neighbouring country to Haiti on the island once called Hispaniola when Columbus landed there and eradicated the indigenous population. When the U.S. ended the occupation of the Dominican Republic in 1924, a US-army trained commander, Rafael Trujillo, rigged the elections and became the country’s new dictator. President Hoover congratulated Trujillo on his “auspicious” victory. When FDR became president in 1933, he implemented his “Good Neighbor” policy for Latin America, meaning that America would be a “good neighbour” to ruthless tyrants like Trujillo so long as they served American interests. During this time, Trujillo, America’s “staunch friend” – as one American businessman referred to him – murdered roughly 25,000 Haitians in Dominican territory in an effort to “purify” and protect the ethnic superiority of the Dominican race. The genocide, however, created bad publicity for America’s support of Trujillo, since it drew obvious comparisons to similar dictators of the same era in Italy and Germany. So FDR’s administration undertook a “massive public relations effort” for the Trujillo regime, which included having biographies written about Trujillo in which he was described as emblematic of “democratic” and “humanitarian” virtues.[16]

In his speech at the Democratic National Convention, Bill Clinton referenced all the good work he has done for Haiti, explaining that he was “honored” to have worked with both president’s Bush and Obama in Haiti through various crises in the impoverished country. He presented this as evidence of how he is not a divisive politician, but seeks to work “with Democrats, Republicans and independents,” and that they “focus on solving problems and seizing opportunities.”[17] Well, how is Clinton’s record in Haiti? Should this question not be asked?

After the American occupation of Haiti ended, a dynastic dictatorship emerged as father and son Duvaliers ruled Haiti with an iron fist, and US support. When the dictatorship could no longer be sustained, it collapsed in the mid-80s, and following a series of military governments, Haiti undertook mass democratic elections in 1990, through which a populist priest and practitioner of Liberation Theology (the view that the purpose of Christianity was to fight for and liberate the poor from their poverty and oppression), Jean Bertrand Aristide, became victorious in securing the presidency. Aristide campaigned on empowering the extremely poor peasant population, which infuriated the local economic elite, who called him “the devil,” as well as U.S. corporate investors, since he attempted to implement the rather radical policy of doubling the minimum wage in the poorest country in the Western Hemisphere. This was obviously unacceptable and “irresponsible,” so in September of 1991, less than a year after being elected President, Aristide was deposed in a military coup. The CIA had formed close links with Aristide’s political opponents, and undertook a campaign to discredit him. Officially, the American government denounced the coup, though within days urged the military dictatorship “toward sharing power with the Parliament.” Economic sanctions were imposed, but quickly lifted in 1992 for the benefit of American corporations in Haiti as the State Department sought an “acceptable” political compromise. Aristide was pressured to sign an agreement that would allow him to “share” power and return to Haiti to continue the rest of his term as little more tan a figurehead.[18]

When Clinton came to power in 1993, his administration continued the process of negotiations aiming to bring Aristide into the “solution,” but only “when conditions permit,” and he agreed to share power with the US-favored candidate in the 1990 elections, a former World Bank official who was installed by the military coup. Meanwhile, the military government had killed thousands of Haitian civilians who were Aristide supporters. When an agreement was announced with Aristide, the military government in Haiti – armed by the US – quickly accelerated its murderous campaign. The US negotiations with Aristide focused on the perceived “need” for Aristide to “share” power with the military, because the Americans – who created the Haitian military force during the first US occupation of the country – viewed it as a source of “stability.” However, the military government refused to have Aristide return and share power with him in any capacity. Thus, Clinton’s National Security Advisor Anthony Lake instructed his staff at the National Security Council (NSC) to construct “Haitian invasion scenarios.”  The United States, however, was a promoter of “democracy,” so it needed to install a “civilian” government, and not be seen supporting a ruthless military dictatorship so openly. Aristide was given advice by the United States Agency for International Development (USAID), run by the U.S. State Department, as well as the World Bank and IMF, who “educated” Aristide on “suitable” economic plans for Haiti once he returned to power. It should be noted, however, that the CIA, several State Department officials, as well as several Democratic and Republican politicians felt it was a bad idea to return Aristide to power, and commonly referred to him as a “psychopath.” Obviously, someone would have to be a “psychopath” to attempt to raise the minimum wage in the poorest country in the Western Hemisphere.[19]

In 1994, Clinton invaded Haiti with 20,000 troops in what was called “Operation Uphold Democracy,” which not only re-installed Aristide to finish his term, but ensured that the coup leaders and perpetrators of atrocities were not held to account for their crimes, the result of a deal brokered by the “human rights” president Jimmy Carter, whom Clinton dispatched to Haiti in order to negotiate a deal with the military. The United States occupation forces handed over “control” of Haiti to a United Nations ‘mission’ of 6,000 soldiers in 1995, with US forces expected to leave in 1996, when Aristide’s term finished and he was replaced with a business-friendly leader. Though in 1995, Clinton’s Deputy Secretary of State Strobe Talbott, reassured the U.S. Senate that, “even after our exit in February 1996, we will remain in charge by means of USAID and the private sector.”[20]

This is called the “restoration of democracy.” While Clinton sent 20,000 troops to Haiti to “restore democracy,” Obama sent 10,000 troops to Haiti to “restore order” following the devastating earthquake which killed several hundred thousand people who were living in the slums that were created through World Bank and IMF policies of austerity and structural adjustment, many of which were imposed during the Clinton administration. When Obama sent his troops to Haiti, he pledged that the “United States is in Haiti for the long haul.”[21] Indeed the U.S. has been invading and exploiting Haiti and punishing its population for over 200 years, so why stop now?

“The Price is Worth It”: How To Get Away With Murdering Half a Million Children

In his speech at the DNC, Clinton also praised Obama’s “successful end of the war in Iraq.” Clinton, of course, has had a great deal of experience when it comes to Iraq. After Iraq had stopped being a pliant U.S. puppet, George Bush Sr. waged a brutal war against the country, after which economic sanctions were imposed, lasting through the duration of the Clinton administration. The sanctions, in fact, began in 1990 before the first Gulf War, which destroyed the entire infrastructure of the country. Margaret Thatcher explained that the purpose of the Iraq war was to “destroy the entire military, and perhaps industrial, potential of that country.” The sanctions from 1990 to 2000 resulted in the deaths of roughly 1.5 million Iraqis, over 500,000 of which were children under the age of 12. The New York Times praised the sanctions as one of the “greatest successes” for the UN in Iraq. Three top UN officials who were sent to Iraq to monitor the sanctions and provide humanitarian assistance resigned in protest against the sanctions, explaining that they were causing immense harm to the civilian population. When Clinton’s Secretary of State Madeleine Albright was asked in 1996 about the 500,000 children killed by the sanctions, Albright stated, “we think the price is worth it.”[22]

Obama of course, has learned a valuable lesson from Clinton, and imposed sanctions on Iran in order to punish the Iranian population. The day before Clinton spoke at the DNC endorsing Obama, the Financial Times reported that the US-imposed sanctions on Iran were having the predictable effect as they were hitting medical patients especially hard, as deliveries of medicine and raw material for Iranian pharmaceutical companies was either stopped or delayed, as “access to medicine has become increasingly limited.” One Iranian medical NGO official commented, “This is a blatant hostage-taking of the most vulnerable people by countries which claim they care about human rights.”[23]

However, these are exactly the intentions of sanctions. When Castro overthrew the U.S.-supported dictatorship in Cuba in 1959, Cuba became the primary enemy of the United States because, in the words of a 1960 National Intelligence Estimate, of Cuba’s “successful defiance of the U.S.” As the Eisenhower administration – and the Kennedy administration following him – designed and implemented harsh economic sanctions, top officials were quite blunt in their internal discussions about the effects and intent of the policies. Eisenhower noted that if the Cuban people “are hungry, they will throw Castro out,” since the “primary objective” of the sanctions, the president noted, was “to establish conditions which will bring home to the Cuban people the cost of Castro’s policies.” Kennedy administration officials explained that the sanctions – and the accompanying covert warfare – were designed to alienate “internal support” in Cuba to Castro’s government, “based on economic dissatisfaction and hardship,” which meant that US policy had to aim “to bring about hunger, desperation and [the] overthrow of the government,” explained one State Department official.[24]

“It Takes Some Brass”: Serving the Corporate Consensus with the Politics of Poverty

The media outlet, PolitiFact, reported on Bill Clinton’s DNC speech, writing that the former president “received a hero’s welcome,” and then confirmed Clinton’s statements on the economy as “true.”[25] Well, what are some things that Clinton said about the economy? One thing Clinton stated was that, “It turns out that advancing equal opportunity and economic empowerment is both morally right and good economics,” adding that, “poverty, discrimination and ignorance restrict growth.” He proclaimed that the Democrats “think the country works better with a strong middle class, with real opportunities for poor folks to work their way into it.” Clinton noted that the Republicans “want to get rid of those pesky financial regulations designed to prevent another crash and prohibit future bailouts.” Clinton, while referring to a Republican politician, noted, “it takes some brass to attack a guy for doing what you did.”[26] While the audience laughed, applauded, and cheered at that statement, the irony was lost on the fact that Clinton was doing just that: “attacking a guy for doing what [he] did.” Clearly, Clinton has “some brass” to not only do that, but to actually comment on that technique.

It’s truly an amazing exercise in absolute hypocrisy to see a man stand up in front of millions of people and blame Republicans for wanting to get rid of “pesky financial regulations” when his administration was largely responsible for getting rid of the most important “pesky financial regulations” – such as the repeal of the Glass-Steagall Act – which Obama has obviously not even considered re-instating. The economic crisis – which is only going to get worse, since Obama has ensured that the next financial crisis will be much more severe than the last one – was not caused by a political party, it was caused by a socio-political and economic ideology that we call ‘neoliberalism.’ This ideology was and still is endorsed and promoted by Republicans and Democrats alike. So from Reagan onwards, every single U.S. president is responsible for creating and making the economic crisis worse, because they implemented policies which were designed to benefit the few at the expense of the many. And when the system crashes, as it inevitably does, the government moves in to save the banks and financial institutions from their crimes, and hand the people the bill.[27]

Under Bill Clinton, the derivatives market exploded as financial institutions were deregulated, major mergers approved – creating what we now call “too big to fail” banks – which since Obama’s “economic recovery” are bigger and more dangerous than ever. Under Clinton, the Federal Reserve kept interest rates at historic lows and provided liquidity (money) to help build the housing bubble, with which Clinton’s unregulated derivatives market saw an explosion in speculation, not only allowing banks and hedge funds to help create the financial crisis, but also to profit from it, as Goldman Sachs did (which was Obama’s main campaign contributor in his 2008 election). Clinton’s administration had the Department of Housing and Urban Development pressure the mortgage giants – Fannie Mae and Freddie Mac – to provide mortgages to low-income borrowers, which helped build the housing bubble under an illusion of prosperity. The Glass-Steagall Act, which was put in place in 1933 in response to the Great Depression, was designed to prevent another Great Depression. So of course, banks like JP Morgan, Citicorp and others lobbied heavily to have it repealed (as a barrier to “growth”), and the Federal Reserve and Clinton’s Treasury Department responded to the demands of their constituents – the banks and corporations that they represent in government – by dismantling these “pesky financial regulations.” Thus, Alan Greenspan at the Fed, Robert Rubin and Larry Summers at the Treasury were among the key architects of the economic collapse, along with their constituents at JPMorgan Chase, Citigroup, Bank of America and Goldman Sachs.[28]

So naturally, when Obama became president, it was important to appoint all the people who caused the crisis to positions in which they are responsible for solving the crisis they helped create. So Obama appointed Larry Summers to be his chief economic adviser, and of course, Timothy Geithner who previously served as President of the New York Federal Reserve, where he was appointed to that position by the major Wall Street banks he was to represent. Geithner was also a protégé of Clinton’s Treasury Secretary Robert Rubin. Rubin had since become an executive at Citigroup, rewarded for his work in dismantling “pesky financial regulations” and thus able to profit from the crisis he helped create. Summers had previously shown his propensity for “morally right and good economics” – as Clinton described it – when he was Chief Economist at the World Bank in 1991, where he wrote a secret memo advocating Western nations and corporations to dump toxic waste in poor African countries because by the time the effects of cancer emerge, statistically speaking, the population would already be dead because their life expectancy was so low. Thus, wrote Summers, “I think the economic logic behind dumping a load of toxic waste in the lowest-wage country is impeccable and we should face up to that.”[29]

Clearly, Clinton’s economic policies as president – and those of which he has endorsed in Obama’s administration – were a triumphant success for the dominant banks, financial institutions and corporations that own the government. Despite all the evidence of Goldman Sachs having engaged in repeated criminal activity in causing the financial crisis and profiting off of it (not to mention getting massive bailout funds from Obama), Obama’s [In]Justice Department recently announced that the U.S. government “will not prosecute Goldman Sachs.”[30] And of course not, why would Obama prosecute the bank that was his number one financial contributor in his 2008 election campaign. Though of course, it should be noted, that Obama’s 2008 campaign had some diversity among its top donors: JPMorgan Chase, Citigroup, and UBS, among others. The financial institutions preferred Obama over John McCain in 2008, and it was a smart investment for them.[31] After all, Obama’s bailouts gave the banks $16 trillion.[32]

No surprise then, to see that Obama’s top campaign donors in 2012 include Wells Fargo, JPMorgan Chase and Goldman Sachs. And since the U.S. Supreme Court voted in January of 2010 to allow corporations to contribute as much money as they want to election campaigns – under “constitutional free-speech rights” – campaign spending has increased dramatically.[33] Thus, while Wall Street gave the Obama campaign $16 million in 2008, that number has soared during the current election, with the same contributors donating to Romney.[34] Among Romney’s current top supporters are Morgan Stanley, Bank of American, JPMorgan Chase, and Goldman Sachs, with Obama getting more support from Microsoft, Google, IBM, and others.[35] While Obama parades around calling Wall Street executives “fat cats,” Obama and the Democratic National Committee raised more than $14 million from the “fat cats” through the end of April 2012.[36]

Clinton stated at the Democratic Convention, reflecting upon his economic policies of the 1990s, “We could see that the policies were working, that the economy was growing… [and] by 1996 the economy was roaring,” neglecting to mention it was a roaring bubble built upon speculation and debt. This, of course, received a thunderous applause for Clinton as he spoke, adding that President Obama “has laid the foundation for a new, modern successful economy of shared prosperity. And if you renew the president’s contract, you will feel it. You will feel it.”[37] He had to repeat that part because people haven’t been “feeling it,” so it was important to remind them that current conditions are no basis for assessing the future. One must assess the future based upon pure “faith.” Hence, “you will feel it” is repeated despite all the policies that indicate otherwise.

Neil Barofsky, the special inspector general responsible for oversight of Obama’s bailout program, recently published a book entitled, “Bailout: An Inside Account of How Washington Abandoned Main Street While Rescuing Wall Street,” in which he wrote, “I had no idea that the U.S. government had been captured by the banks,” but this became clear as the bailouts were “setting the country up for potentially catastrophic losses.”[38] In his final report as inspector of the bailouts, Barofsky wrote: “The prospect of more bailouts will continue to fuel more bad behavior with potentially disastrous results.” In other words, the concept of “too big to fail” is an insurance policy for banks, telling them that the government will always be there to save them, and thus, they have no incentive to engage in safe financial practices, and are actually encouraged to continue making highly risky and speculative investments, paving the way for the next financial crisis at which time they will be bailed out again. Barofsky called the bailouts a “colossal failure,” under which the Treasury Department “made almost no effort to hold [the banks] accountable, and the bounteous terms delivered by the government seemed to border on being corrupt.”[39] Just more of Clinton’s “morally right and good economics,” no doubt.

“Free Trade” and Costly Poverty: A Bi-Partisan Consensus

Clinton of course, also implemented the NAFTA agreement, which is a protectionist corporate-dominated system of economic integration and exploitation between Mexico, Canada, and the US, undermining labour, de-industrializing the northern countries, exploiting the labour of poor Mexicans, and undertaking a concerted assault against the middle class. Thus, it is called a “free trade agreement,” though it consists of thousands of pages of rules and regulations expanding corporate rights and domination of the economy. This is perhaps what Clinton was referring to when he said that Democrats work towards “advancing equal opportunity and economic empowerment” in order to provide “real opportunities” for “a strong middle class.” Those statements were of course met with thunderous applause and cheers.

Back during the 2008 campaign, both Barack Obama and Hillary Clinton said that they would renegotiate NAFTA, and even suggested that the United States would pull out of the agreement. While campaigning, they made these statements at a debate in Cleveland, Ohio, where NAFTA is “wildly unpopular with blue-collar workers,” due to all the manufacturing jobs that were lost as a result of the trade agreement. Hillary Clinton stated that she would “renegotiate it on terms that are favourable to all of America.” Obama agreed with Hillary at the debate, stating, “I will make sure that we renegotiate in the same way that Senator Clinton talked about, and I think actually Senator Clinton’s answer on this one is right.” Obama said that he would “ensure that we actually get labour and environmental standards that are enforced… That is something that I have been consistent about.”[40]

The Canadian business and financial elite – and their mouthpieces in the media – immediately declared the sky to be falling as a result of presidential hopefuls suggesting to renegotiate NAFTA. It was leaked to the Canadian media that a senior member of Obama’s campaign team contacted the Canadian Consulate in Chicago to inform them that when Obama talks about renegotiating or “opting out” of NAFTA, “it was just campaign rhetoric not to be taken seriously.” In other words, he was just lying to get into power. The statements were made by Austan Goolsbee, Obama’s senior economic adviser during his campaign.[41] Goolsbee further informed Canadian officials that Obama’s stand on free trade during the campaign trail was “more reflective of political maneuvering than policy,” and that Obama’s language “should be viewed as more about political positioning than a clear articulation of policy plans.”[42] In other words, it is important to completely ignore everything Obama says while he is campaigning for president, because it is all lies meant to be consumed by the “ignorant and meddlesome outsiders,” the voting public. It does not reflect the actual policies and plans of Obama, which the public is not to be informed of.

So why lie about NAFTA? In Ohio, where the pledges to renegotiate NAFTA were made, the trade agreement led to the loss of roughly 200,000 manufacturing jobs, while the U.S. as a whole lost some 3.1 million jobs between 1994 and 2009 due to NAFTA, which also led to a trade deficit with Mexico and Canada that was $9.1 billion in 1993, and has since risen to $138.5 billion in 2007. During the presidential campaign, national polls revealed that 56% of the American population was in favour of renegotiating NAFTA. In Mexico, hundreds of thousands of people had marched in opposition to NAFTA, demanding renegotiations, and in Canada, 61% of the population favour renegotiation.[43]

Public opinion polls are extensively studied by the public relations industry and political strategists, who advise politicians during their campaigns (and once they take power). Because public opinion is in favour of renegotiating NAFTA, the rhetoric of politicians must reflect public opinion, so that the politicians are viewed in a good light and get the votes they need to get into power. However, because politicians are put in power to serve the interests of corporate and financial institutions, it can only remain as rhetoric, because renegotiating is against the interests and desires of the economic and financial elite, who are, after all, the major financial contributors to electoral advertising campaigns. So public opinion must be studied so that it can be used to manipulate the public – “the engineering of consent” – but then it must also be immediately undermined and dismissed, so that policy does not actually follow public opinion. Rather, public opinion – to the best degree possible – must be influenced to follow policy.

Raymond Chretien, former Canadian Ambassador to the U.S. and nephew of former Canadian Prime Minister Jean Chretien (who implemented NAFTA in cooperation with Bill Clinton), said in November of 2008, just following Obama’s successful election, that Obama “will likely find a way to back off his election campaign promise to renegotiate” the agreement, adding, “once in power in January, once apprised of what is at stake here,” meaning, massive corporate profits, “I doubt very much that he will want to reopen that.”[44] Within less than a month of becoming president, Obama stated that his promise to renegotiate NAFTA “will have to wait”; forever, no doubt.[45] Kind of like closing the torture camp at Guantanamo.

So apart from just lying about trade agreements to get into power, what is Obama’s actual record as president on trade agreements? Negotiations were begun under the Bush administration in 2008 for the Trans-Pacific Partnership (TPP), and of course, since the difference between Obama and Bush was one of rhetoric, the negotiations continued in the same manner: secretly.

The Office of the U.S. Trade Representative (USTR) has been working for over three years on a massive so-called “trade agreement” behind closed doors, with input given only to 600 corporate lobbyists who have had access to the draft deal and negotiations, which have otherwise been kept secret from the public. Just part of Obama’s promised “transparency,” no doubt. The agreement includes the U.S., Australia, Brunei, Chile, New Zealand, Peru, Singapore, Malaysia, and Vietnam, among others. Roughly 133 Democratic representatives wrote a letter to Obama demanding access to the “secret texts” of the trade deal, with public interest groups warning that millions of jobs could be lost as a result of the agreement.[46]

While it is called a “trade agreement,” only 2 of the 26 chapters in the TPP have to do with trade, with the majority of the rest dealing with establishing corporate rights, protections, privileges, as well as constraints on “pesky” government regulations. Among these new “rights” and “privileges” for corporations (who obviously do not have enough rights and privileges as it is) include more job offshoring, protections to allow monopolies to raise prices, as well as new corporate controls established over natural resources. The deal also includes threats to food safety, land use, environmental protection, energy use and control, as well as a special chapter on “copyrights” which includes a massive threat to Internet freedom, which was previously stalled in Congress with the attempted Stop Online Piracy Act (SOPA). Obviously, dismantling Internet freedom through a corrupt institution like Congress failed due to public pressure, and thus, Congress is still too influenced by the “meddlesome and ignorant outsiders,” so it’s better that such an agreement be negotiated in secret with 600 corporations.[47]

Documents from the deal have been leaked, which is the only way that any of this information has become public. When the documents were leaked, it was reported that the Obama administration “intends to bestow radical new political powers upon multinational corporations.” In the documents, it was revealed that Obama’s administration has emerged as a very strong advocate “for policies that environmental activists, financial reform advocates and labor unions have long rejected for eroding key protections currently in domestic laws.” In other words, the already ineffective and almost-useless and toothless environmental, financial, and labour protections that exist are simply unacceptable to the Obama administration and the 600 corporations Obama is taking his orders from. The agreement stipulates that foreign corporations operating in the United States would no longer be subject to domestic US laws regarding protections for the environment, finance, or labour rights, and could appeal to an “international tribunal” which would be given the power to overrule American law and impose sanctions on the U.S. for violating the new “rights” of corporations.[48]

During his 2008 presidential campaign, Obama stated, “We will not negotiate bilateral trade agreements that stop the government from protecting the environment, food safety, or the health of its citizens; give greater rights to foreign investors than to U.S. investors; [or] require the privatization of our vital public services.” I suppose that was somewhat true, since technically it isn’t a “bilateral” agreement, but rather a “multi-lateral” agreement. Referring to the changed rules for medication – which would allow companies to increase prices and control monopolies over life-saving medications, as well as prevent poor countries from developing cheap alternatives – the U.S. manger of Doctors Without Borders Access to Medicines Campaign, stated, “Bush was better than Obama on this.” The agreement would of course grant similar rights to American corporations in the other countries of the TPP agreement, thus, it serves as a profitable and exploitative bonanza for all multinational corporations involved, and of course, all the populations from the countries involved will suffer as a result. The “international tribunal” which would dictate the laws of the countries would be staffed by corporate lawyers acting as “judges,” thus ensuring that cases taken before them have a “fair and balanced” hearing, as in, fairly balanced in favour of corporate rights over… everything else. The TPP deal is strongly supported by the U.S. Chamber of Commerce, the largest business lobby in the United States, as well as by presidential hopeful Mitt Romney, who has urged the U.S. to finalize the deal as fast as possible.[49]

Public Citizen is the organization that published the leaked document, a public research institution whose director, Todd Tucker, stated, “The leaked document… shows that in all of the major respects, this is exactly the same template that was used in NAFTA and other agreements that President Obama campaigned against,” and noted that the TPP has provisions that allow other countries to join in the future, potentially becoming a new “global trade agreement, larger than NAFTA.”[50] The American Prospect reported on the TPP leaks, writing that, “the TPP now threatens a slow-motion stealth attack against a century of progressive domestic policy,” though it’s hardly slow-motion, and the policies that exist can hardly be said to be “progressive,” but nonetheless, all the little concessions granted to the demands of the “bewildered herd” of “interested spectators” were simply too much to bear for corporate dominance. Gary Horlick, a former U.S. trade official who had spent four decades involved in trade deals, stated, “This is the least transparent trade negotiation I have ever seen.” In fact, participants in the negotiations and discussions have to sign a memorandum of understanding which forbids them from releasing any “negotiating documents until four years after a deal is done or abandoned.” In short, Obama’s TPP is a “corporate coup.”[51]

The objective with the “unprecedented secrecy” in the negotiations is to have the deal signed before the elections. As the U.S. Trade Representative Ron Kirk noted, “I believe … that we have very faithfully operated within the spirit of the Obama administration to have the most engaged and transparent process as we possibly could.” Though he explained what he meant by “as we possibly could,” when he added that, “there’s a practical reason” for all the secrecy: “for our ability both to preserve negotiating strength and to encourage our partners to be willing to put issues on the table they may not otherwise, that we have to preserve some measure of discretion and confidentiality.” In other words, the secrecy is necessary because if people knew what we were doing behind closed doors, they would oppose it, and the deal would be stopped. Yes, that is very “practical.” When asked if he would release a draft text of the agreement, Kirk replied that it was too early to do that, “there will be a time, once we have agreed on text, that we may – as we have with other agreements – be able to release that.” In other words: “maybe, and by maybe, I mean… nope!” Meanwhile, other nations don’t want to be left out of such an ambitious and “prosperous” trade agreement, as Japan, Canada, and Mexico have been lobbying to be included. But this would require the three countries to implement changes to their already-existing policies which would allow them to even be considered to enter the TPP. In other words, even Mexico doesn’t meet the required standards of desirable corporate exploitation and domination to be considered.[52]

All the secrecy is very important, because as public opinion polls show, the entire population is adamantly opposed to these types of negotiations. An opinion poll from 2011 revealed that the American population has – just over the previous few years – moved from “broad opposition” to “overwhelming opposition” to NAFTA-style trade deals. A major NBC News-Wall Street Journal poll from September of 2010 revealed that “the impact of trade and outsourcing is one of the only issues on which Americans of different classes, occupations and political persuasions agree,” with 86% saying that outsourcing jobs by U.S. companies to poor countries was “a top cause of our economic woes,” with 69% thinking that “free trade agreements between the United States and other countries cost the U.S. jobs,” and only 17% of Americans in 2010 feel that “free trade agreements” benefit the U.S., compared to 28% in 2007. A Democratic Party polling firm revealed that 45% of voters were much more likely to support a Democratic candidate if the candidate pointed out how their opponent supported various “free trade agreements” negotiated by George Bush. The same polling agency revealed in 2010 that Americans do not feel “warmly” towards corporations and banks, with only 29% of voters feeling “warm” toward corporations (compared to 13% among non-voters), and 12% of voters felt “warm” toward banks (compared to 16% among non-voters). These are lower ratings than those for Obama, Sarah Palin, the GOP, Democrats, Newt Gingrich, the NRA, labor unions, and much more. Polling showed that voters who vote for Democrats cited “job offshoring” as “the most important issue facing the country,” and felt that Republican support for offshoring was the “most important reason to not vote Republican.”[53]

The extensive polling, which politicians are well aware of, reflects a view that citizens look at corporations and banks unfavorably, and that issues of “free trade” and “job offshoring” feature extremely high in their concerns, and whether Democrat, Republican, or Independent, the population is overwhelming in opposition to “free trade” agreements. So, the lesson from all this research on public opinion is not to change the policy to meet the demands of the public, but rather to change the discussion. So “free trade” agreements are simply not discussed, hence the enormous secrecy behind the TPP. Since corporations and banks are viewed so unfavorably, you simply remove them from the discussion. After all, it is the corporations and banks that the politicians are there to serve, and you don’t want to bad mouth your bosses in public too much or too loud (unless it’s “just campaign rhetoric”). Thus, when it comes to blaming the economic crisis on someone, the discussion must be simplified to an absurd little fairy tale in which you remove facts from reality, and create an image and establish a political discourse in which it was either: a) the Republicans did it, or b) the Democrats did it. By framing the discourse at this very basic, black and white manner, you immediately divide people against each other, instead of uniting them in opposition to the banks and corporations which control the politicians and the government. This is done for obvious reasons. You can’t expect a parasite to help you find a way to get rid of parasites. That’s why public relations was invented.

“Jobs, jobs, jobs. Jobs jobby-jobs, jobby job-jobbin… Jobs.” – Every Politician Ever

When politicians blather about, they almost always mention this magical word called “jobs.” They usually state that their intention is to “create jobs” or that they have already “created jobs.” This is taken as a testament to their tireless work on behalf of the population that elected them. Jobs are good. So if politicians create jobs, they are doing good… right? Well, what if the word “jobs” meant something different when politicians say it? Perhaps, it would be helpful to seek a definition, so that we can translate political language and understand what is really being said. After all, if you only speak English, and you’re listening to someone who only speaks Spanish, you might recognize a couple of words now and again, but ultimately, you need a translation in order to understand what is being said. As Noam Chomsky has pointed out in countless public speaking events, when politicians say “jobs,” what they mean to say is, “profits.” Perhaps this is worth investigating, no?

First, we must ask some basic questions. Why are jobs important? Because they provide a means of living, of earning income, and thus, generating wealth and prosperity for all. That’s the story, anyway. But essentially we can deduce that jobs are important because they provide income, which we depend on to live. So, if we are to talk about jobs, we have to talk about income.

In June of 2012, the OECD – an international organization of economists representing 34 of the wealthiest countries on earth – released a report noting that the United States is facing “record long-term unemployment, income inequality and lack of investment in education and innovation.” The report noted that for the U.S., “income inequality and relative poverty are among the highest in the OECD.” Only Chile, Mexico, and Turkey rank higher among OECD nations in terms of income inequality. The chances of staying poor are higher in the U.S. than in Europe. As Deputy Secretary-General of the OECD and former State Department official Richard Boucher explained, “If your parents are poor, the chances are you are going to stay poor.” As the comedian George Carlin once said, “It’s called the American Dream, because you have to be asleep to believe in it.” The OECD report also noted, “the ongoing tide of foreclosures will continue to put downward pressure on house prices.” Just more of that “economic recovery” that we are told we are experiencing. Long-term unemployment in the U.S. is especially bad, with 40% of the unemployed – that’s officially 5.3 million Americans – have been out of work for 27 weeks or more. As the report also noted: “Although the middle class have seen their taxes remain roughly constant, or slightly increase, average income taxes have significantly declined for the most wealthy, especially the 1% top earners.”[54]

In 2008, the average household income for the top 1% was $1.2 million, though the percentage is highly skewed, as entry to the top 1% starts at $380,000. The share of total national income going to the top 1% reached an 80-year high in 2007, of 23.5% (and 17.6% in 2009 as the financial market deflated). For the top 0.1%, the inequality is even more pronounced. Their share of total income for the United States was 12.3% in 2007, sinking to a “still disproportionate” level of 8.1% in 2009 with the financial crash. Though this is a general trend in most countries of the OECD nations, it “began sooner, and has gone further, in America.” Increasingly, those who are within the top 1% work in finance, a trend which has increased faster than any comparable business between 1979 and 2005. In 1979, 8% of those within the top 1% worked in finance; in 2005, 13.9% of those in the top percentile worked in finance. For the top 0.1%, in 1979 roughly 11% were in finance, and in 2005 roughly 18% were in finance. The last time that income inequality was even comparable to the present day situation was during the Great Depression.[55]

Nobel Prize winning economist Joseph Stiglitz said in June of 2012 that the United Sates is “no longer the land of opportunity” and “the ‘American dream’ is a myth.” As he detailed in his newest book, The Price of Inequality, “America has the least equality of opportunity of any of the advanced industrial economies.” This inequality will only widen in the coming decades, he warned, because the lack of mobility makes it a reinforcing system, and America will become a two-class society: “People will live in gated communities with armed guards. It’s an ugly picture. There will be political, social and economic turmoil.” Stiglitz, however, said there was a solution: eliminating “corporate welfare” and policies that “create wealth but not economic growth.”[56] In other words, instead of just creating profits for the few, focus on prosperity for the many. However, all U.S. administrations – whether Democrat or Republican – have done the exact opposite.

Between 1979 and 2006, the share of national income that went to the top 1% doubled, while the top 0.1% have amassed a larger share of the national income than at any other point on record. Between 2009 and 2011, the S&P500 (the stock prices of the top 500 companies) went up by over 80%, while median household income declined by more than 10%. While the bottom 50% of Americans own 2.5% of the national wealth, the top 1% own 33.8%. The bottom half of Americans own 0.5% of stocks, bonds, and other investment assets, while the top 1% own 50.9%. As of 2007, the top 1% had 5% of the debt, while the bottom 90% had 73% of the debt. Tax rates for the richest Americans are almost the lowest they have ever been. Productivity of workers has increased exponentially since 1947, but inflation-adjusted wages have remained flat for the same period of time. Between 1990 and 2005, the average pay for a CEO increased by 300%, and corporate profits have doubled, while pay for “production workers” (labour) has increased by 4% and the minimum wage has dropped. In 1970, the top CEOs earned 45 times as much as the average worker; in 2006, the top CEOs earned 1,723 times as much as the average worker. America has more income inequality than Egypt, India, China, Russia, and Iran. This inequality is further strengthened when you examine the generational divide. Between 1984 and 2009, the median net worth of people under the age of 35 has dropped by 68%, while seniors have gotten 42% richer. Adjusted for inflation, in 1984, the median wealth of someone under 35 was $11,521; in 2009, it was $3,662.[57]

Now we get to the actual subject of “jobs,” of which Clinton spent so much time discussing in his speech at the DNC, that Democrats are better at creating “private-sector jobs” than Republicans, which was met with thunderous applause, and endless articles in the media explaining how “right” he was. Well yes, the “private sector” has added some jobs. This led Obama to say in June that the private sector was “doing fine.” When this created a public relations problem for Obama, he later clarified that it is “absolutely clear that the economy is not doing fine.” He added: “If you look at what I said… we’ve actually seen some good momentum in the private sector… record corporate profits… so that has not been the greatest drag on the economy.”[58] Indeed, this is partly true. In May of 2012, the largest 500 corporations (the Fortune 500, as they are called) reported record-breaking profits, with ExxonMobil and Wal-Mart in the top spots. Further, “the combined earnings for the Fortune 500 corporations rose 16% from 2010 to a record high of $825 billion in 2011.”[59] As profits increase, the pay for CEOs increases too, jumping just 6% in one year.[60] In June of 2012, the Federal Reserve revealed that between 2007 and 2010, Americans saw their wealth plummet by 40%.[61] So, Obama was correct in saying that we have seen “record corporate profits,” but incorrect in saying that this was not a “drag on the economy,” as it rapidly accelerates income inequality, which, quite directly, creates a drag on the economy, to say the least.

While the private sector has been adding jobs, the public sector has been cutting them, at both the state and federal level, which has been hitting black Americans the hardest.[62] This has been a significant “drag” on economic growth (it’s called “austerity”), and it is a growing trend, and will continue regardless of whether a Democratic or Republican politician is in office, because it is what is demanded by the economic and financial elite and neoliberal ideology: which dictates “austerity” and “structural reform” as a response to a crisis. When you translate those words, you get “impoverishment” and “exploitation.” This leads to “growth,” which means “profits.” Just like the word “jobs” also often means profits.

When Obama created his “Jobs and Competitiveness Council,” he asked 26 CEOs to form a group to advise the president on how to “create jobs.” The council was headed by Jeffrey Immelt, the CEO of General Electric, but also included other “job creators” like the CEO of American Express.[63] And who better than the CEO of General Electric to lead the charge on “job creation”? After all, General Electric has cut significant amounts of American jobs, so naturally, it’s a logical choice from which to appoint a “jobs czar.” Between 2000 and 2009, the number of Americans employed by GE declined from 162,000 to 134,000, a general trend which saw U.S. multinational corporations reduce their domestic American workforce by 2.9 million people in the past decade, while increasing their overseas workforce by 2.4 million. When Obama appointed GE’s CEO, Jeff Immelt as “jobs czar,” President Obama stated that Mr. Immelt “understands what it takes for America to compete in the global economy.”[64] Indeed, it “takes” undermining labour, worker exploitation, deregulation, offshoring, job insecurity, and government subsidy for corporations. In fact, the ten largest companies on Obama’s “jobs council” have shed over 91,000 jobs since 2009, with General Electric contributing 19,000 job losses to that number.[65]

So, if we do translate the word “jobs” into the word profits, then things tend to make more sense. After all, Obama appointed Immelt as his “jobs czar,” after Immelt cut 19,000 U.S. jobs but helped GE make record profits, and not only that, but GE does not pay any taxes, and instead, claims billions of dollars in tax benefits.[66] Thus, it makes more sense to think of Immelt as the “profits czar” who was put on Obama’s “profits council” to “create profits.” When you translate political language, everything suddenly makes much more sense, because it becomes comprehensible and logical. It just also happens to be rather monstrous and corrupt and infuriating, but that’s why political language is constructed: to not be properly understood. Thus, it was perfectly understandable for Bill Clinton, who implemented NAFTA which led to massive job losses, declining wages and standards of living, increased debt, offshoring, but also immense corporate profits, to explain in his speech that, “we need a lot more new jobs,” but pointed out what a good record Democrats have for “creating jobs.” Indeed, General Electric and Goldman Sachs would agree.

Public Relations Shapes the Debate

Since the economy is a disaster, it is very important to properly shape the discourse on economic issues, most especially during a political advertising campaign, otherwise it would be difficult to maintain any legitimacy. Greenberg Quinlan Rosner is a public opinion research and strategic consulting firm that often works with the Democratic Party. Essentially, it is the Democratic Party’s public relations organization. In June of 2012, James Carville, a long-time Democratic Party political strategist who was the lead strategist for Bill Clinton’s successful presidential campaign, produced a research report along with other top political strategists for Greenberg Quinlan Rosner. The report was entitled, Shifting the Economic Narrative, which suggested that the “prevailing narratives articulated by national Democratic leaders” are “vulnerable” in regards to the economic situation. In other words, the Democratic rhetoric and talking points on the economy don’t have much legitimacy. The report wrote that Democrats face an impossible situation in the elections “if we do not move to a new narrative,” or, to construct a new story. This would mean to change the story to “one that contextualizes the recovery but, more importantly, focuses on what we will do to make a better future for the middle class.” The report stated that voters “know we are in a new normal where life is a struggle – and convincing them that things are good enough for those who have found jobs is a fool’s errand,” thus, the narrative must shift to discussing “the plans for making things better.” While noting that the Democrats were losing voters on the economy, the report added that the same voters were still leaning toward the Democrats “because Romney is very vulnerable,” since “[t]hey do not trust him because of who he is for and because he is out of touch with ordinary people.” The report noted that the result was that, “it produces a fairly diminished embrace of Obama and the Democrats, the lesser of two evils, without much feeling of hope.”[67]

What voters “want to know,” wrote the report, was that Obama “understands the struggle of working families and has plans to make things better.” It doesn’t matter whether or not this is true, of course, but just that people believe it, and that they “want to know” it. The report noted that it had conducted several focus group research studies on college-educated voters who are ‘independents’ or ‘weak partisans,’ meaning that they only somewhat align with a particular political party. The research was revealing: while most had jobs, they had lower wages and fewer benefits which has left them struggling to pay for groceries. For non-college graduates, the situation is even worse, largely dependent upon food stamps and with many expressing that they feel as if they live in the 1900s where “you’re just slave labour.” Young people also have a disproportionate struggle, and are increasingly moving back home with their parents. Even in affluent suburbs people are “struggling with new realities,” such as “stagnant incomes, pay cuts, and layoffs.” Wile bills go up, paychecks either remain stagnant or go down, and this is most keenly felt in the cost of groceries, gas, cable bills, and medical insurance. These voters, the report suggested, “are not convinced that we are headed in the right direction,” with “no conceivable recovery in the year ahead that will change the view of the new state of the country.” These people, stated the report, “actually have a very realistic view,” and thus, “the current narrative about progress just misses the opportunity to connect and point forward.”[68]

While most of these voters support Obama, “they say it cannot get worse and you have to believe it will get better.” The “optimism” is predicated on the basis that “this has to be rock bottom,” which the report defined as “pessimistic optimism.” The type of “leaders” they are looking for are those “who understand the uncertainty and can lead a way forward.” While the Obama campaign talks about “jobs gained,” wrote the report, “it gains no support beyond 2008 Obama supporters.” On the economy, Romney supporters typically cannot say anything positive except that he is “not Obama.” However, many voters would still choose Romney over Obama when it comes to the economy, but when forced to choose between the two on the whole, “many of the Obama voters work to figure out a way to support him, though it lacks the kind of emotion and rationale that would drive engagement.” In other words, support for Obama tends to be driven more by the fact that he is “not Romney.” In the words of the report, it was that Obama was “the evil you know” and the “lesser of two evils.” While the patience of voters on Obama was “wearing very thin, they still want to believe in him.” All the ideas of voters that support Obama “center on what he should do – not what he has done.”[69] In other words, support is maintained in false hope.

In terms of “shifting the economic narrative,” the research report suggested that, “the strongest message was one focused on the future of the middle class – with minimal discussion of the recovery and jobs created and maximal empathy for the challenges people face.” Thus, the election needs to be about the “future of the middle class.” Two-thirds of those who partook in the focus groups responded positively to this message of helping the middle class, and they reacted well to references of the Clinton era economy (when their wealth was constructed on an illusion of debt and consumption). Ultimately, the report suggested that the best advertising campaign for the Democratic Party and Obama in particular was to “connect on a pocketbook level” and “commit to the programs voters rely on most,” such as Medicaid, Social Security and foodstamps. This rhetoric has “the capacity to be very powerful, particularly when the offer on the other side is suspicious and weak.”[70]

This “shifting message” was well received in Bill Clinton’s speech, where he talked about moving people “out of poverty [and] into the middle class,” and warning people that the Republicans will “hurt the middle class and the poor and put the future on hold.” That phrase, in particular, hit all the right points of discussion as suggested by the Democratic Party’s polling agency: to talk about the middle class, to protect the poor, and to focus on “the future.” That is why, as Clinton was finishing his speech, he said that, “If you want a future of shared prosperity, where the middle class is growing and poverty is declining… you have to vote for Obama.”[71] Or that Democrats “think the country works better with a strong middle class.” Or that Republicans want to cut programs “that help the middle class and poor children,” which, of course, is true. But the statement neglects the problematic context that while Democrats may not necessarily “cut” these programs (though again, the evidence of this is scant, but let’s imagine as a hypothetical), the Democrats do continue to create the social conditions in which the middle class and poor struggle more, and thus, become more dependent upon various programs of support. It’s sort of like saying that, “After my opponent beats you with a stick, he won’t let you have a bandaid… But after I beat you with a stick, I at least give you a bandaid.”

Brand Obama: No ‘Hope’ in Hell for ‘Change’

Since the public relations industry runs election campaigns and a good deal of public politics, it only makes sense that the industry itself acknowledges this fact. When it came to Obama’s 2008 election campaign, the public relations and advertising industry were completely ecstatic. Before even being elected president, Obama won the Advertising Age’s “marketer of the year” award for 2008, winning the vote of hundreds of marketers, agency heads and other industry representatives at the annual conference of the Association of National Advertisers. Obama’s campaign of “hope” and “change” beat Apple for the coveted prize that year. The Vice President of Rodale marketing solutions stated, “I honestly look at [Obama’s] campaign and I look at it as something that we can all learn from as marketers.”[72]

At the Cannes Lion International Advertising Awards in June of 2009, the Obama campaign claimed two of the top awards at the prestigious international advertising and public relations industry awards. His campaign won the Titanium grand prix award, for which the criteria is an advertising campaign that is “provocative, challenges assumptions and points to a new direction.” For example, “hope” and “change.” The Titanium award, according to the organizers at the Cannes ceremony, “celebrates work that causes the industry to stop in its tracks and reconsider the way forward.” The other coveted prize that the Obama advertising campaign received was the Integrated Lions award, referring to a campaign that uses three or more media, such as the press, Internet and television, which is “high standard and state-of-the-art.”[73] One advertising executive commented, “They turned (political advertising) from being one dimensional to something the whole country could contribute to. It was a fantastic idea.” Another advertising executive stated, “it was effective. You couldn’t ignore it. There will never be a political campaign that doesn’t use these tools.”[74]

That same month, Obama’s White House Press Secretary Robert Gibbs received the Public Relations Professional of the Year award from the Public Relations Society of America (PRSA), “for his groundbreaking use of new communications techniques and technologies, as well as successful delivery of campaign messages to a broad electorate.” The chairman and CEO of the PRSA, delivered the award to Gibbs, stating, “Robert Gibbs and his team revolutionized the way presidential candidates speak to voters by engaging best practices in current communications techniques and technologies,” adding: “He transformed static, one-way messaging into a dynamic dialogue to engage an expansive electorate like never before.” Upon accepting the award, Gibbs explained that his campaign had to “focus on the message of change being communicated by our candidate… we knew our success depended on our ability to stay focused on that message and relay it honestly and consistently to people across the country.”[75]

“You Have to Treat Them Like Children” – Franklin D. Roosevelt

Whether Bill Clinton, George Bush, Barack Obama or Mitt Romney, they are all parasites, whose purpose is to manipulate the public into granting them the “consent” to govern, while they govern for the benefit of corporations and banks to plunder, exploit, and profit at the expense of the population, both at home and around the world, which is often facilitated through war, coups, repression of liberation movements, genocide, and impoverishment. To these people, the public – you and I – are nothing but a “bewildered herd” of “ignorant and meddlesome outsiders” who must be kept as the “interested spectators of action.” The more talented a politician is at “manufacturing consent,” the more praise he or she gets from the media, and thus, from the public, itself. It is important to expose the spectacle of “public relations politics” so that we can look underneath the surface of power, and understand the real functions and structure of our society, and thus, we can be more capable of changing it. To take a quote from Bill Clinton out of context when he spoke at the Democratic National Convention, “It’s important, because a lot of people believe this stuff.” When he said this, he was referring to the views of Republicans, but the quote is revealing of Clinton’s arrogance and indeed, his talent as a manipulator of the public mind, because it applies precisely to a public relations event like the Democratic National Convention itself: “a lot of people believe this stuff.”

It seems that it is time that people now place their beliefs in more tangible, factual, and logical realities. As children, we were told fairy tales; as adults, we believe fairy tales. Just as Franklin D. Roosevelt said of Latin Americans back in the early 20th century, “You have to treat them like children.” Well that applies to their view of the domestic population as well. Even though our political parasites continue to treat us like children, we have the choice – and the capacity – to act like adults. That means that we have to begin by dismantling the fairy tales that we believe in. Parents know that there comes a time when they must tell their children that there is no Santa Claus, and while this reality may be difficult for the children at first to accept, they are able to deal with that reality, and intellectually evolve and mature beyond it. People as a whole have the same capacity. Whether or not we utilize that capacity is entirely up to us, because our politicians have no interest in doing so, nor will they. It is up to us to dismantle the mythology ourselves.

The most effective way to do this is to take a very practical and logical first step of applying the same standards to our own society that we apply to others. In other words, instead of pointing to the crimes of state-sanctioned “enemies,” instead of blaming either Republicans or Democrats for all the woes of society, one must engage in social self-reflectionand apply the exact same method of inquiry into the ideas, individuals and institutions of our “enemies” as we do to our own ideas, individuals, and institutions.

I think it’s relatively safe to assume that most people would not want a mass murderer as a close friend, but for some reason, millions of people cheer and applaud mass murderers as their leaders. This obviously has no basis in logic. If mass murder is wrong and immoral, those who commit it or participate in it are also immoral. When someone has clearly demonstrated their capacity for immorality – and their willingness to commit mass atrocities – as Clinton, Bush, and Obama all have, it does not make any logical sense to support these people on other claims of “morality” such as: gay rights, family values, abortion, etc. These are designed specifically as issues which limit the political discourse, which remove any discussion of empire, war, mass murder, genocide, corruption, impoverishment, the dismantling of rights and freedoms, torture, assassinations, coups, exploitation, environmental devastation, surveillance and the construction of a police state apparatus. These divisive issues, which in a functioning democracy would have been solved almost immediately, are designed to facilitate a back-and-forth between Republicans and Democrats, to distract the “bewildered herd” with only a few acceptable issues of discussion. Thus, anyone who raises other issues, of much greater relevance, ends up sounding like a Martian; they are perceived as suffering from some sort of “fringe” insanity. But insanity is not “fringe,” insanity is very much mainstream.

If, by chance, issues like war are raised in the political discourse – and most especially during advertising campaigns (which we commonly refer to as “election campaigns”) – then the critique of war policies are themselves confined to an “acceptable” discourse: either the war was a “success”, or it was a “tactical failure.” This implies, immediately, that the objectives of war are always inherently good, because if we wage war, it must be with good intentions. The morality of war – and the reality of empire – are not to be questioned.

When Obama was campaigning for president in 2008, he wrote an op-ed for the New York Times in which he referred to the Iraq war as a “distraction” for which he would make “tactical adjustments.” He wrote that the Iraq war was a “strategic blunder.”[76] That “strategic blunder” led to the deaths of over one million Iraqis between 2003 and 2008.[77] Yet, Obama was given praise for his “enlightened” critique of the Iraq war.

We must apply very basic standards of human decency to those who parade about as our leaders and saviors. An enormous amount of effort is put into preventing people from assessing political leadership in a logical, coherent, and rational manner. That is what the public relations industry does. Politicians are products to be marketed, bought and sold, and like most modern products, they fall apart quickly and have to be replaced. We have to begin questioning our political consumption patterns, otherwise we won’t change them, and it is glaringly obvious that what we have, simply isn’t working.

Watching Bill Clinton speak at the Democratic National Convention reminded me of why I don’t watch political speeches. The man stood up on stage for nearly an hour, and talked about how he cared about what poor families will do if the Republicans come to power, that Obama has fixed the economy, and he even felt it necessary to literally state, “Look, I love our country so much,” just in case you had any doubts. Clinton reached divine levels of absurdity and double-think when he stated:

If you want a future of shared prosperity, where the middle class is growing and poverty is declining, where the American dream is really alive and well again and where the United States maintains its leadership as a force for peace and justice and prosperity in this highly competitive world, you have to vote for Barack Obama.[78]

Considering that none of those fantasies exist under Republicans or Democrats, let alone Clinton or Obama, I will simply end with my favourite quote from Clinton during his speech: “a lot of people believe this stuff.” Let’s hope not for long.

Andrew Gavin Marshall is an independent researcher and writer based in Montreal, Canada, writing on a number of social, political, economic, and historical issues. He is also Project Manager of The People’s Book Project. He also hosts a weekly podcast show, “Empire, Power, and People,” on BoilingFrogsPost.com.

Notes

[1]            Ryan Lizza, “Clinton’s Speech: The Power of a Hug,” The New Yorker – News Desk, 6 September 2012:

http://www.newyorker.com/online/blogs/newsdesk/2012/09/bill-clinton-convention-speech-the-power-of-a-hug.html

[2]            Konrad Yakabuski, “Clinton gives a boost to Obama’s middle-class-hero image,” The Globe and Mail, 5 September, 2012:

http://www.theglobeandmail.com/news/world/us-election/clinton-gives-a-boost-to-obamas-middle-class-hero-image/article4522804/

[3]            David Giambusso, “Congressman Pascrell: Bill Clinton’s speech tonight is ‘his comeback’,” The Star-Ledger, 5 September 2012:

http://www.nj.com/news/index.ssf/2012/09/bill_clinton_hits_the_stump_fo.html

[4]            Dan Balz and Philip Rucker, “Bill Clinton offers forceful defense of Obama’s record,” The Washington Post, 5 September 2012:

http://www.washingtonpost.com/politics/bill-clinton-will-highlight-convention-tonight/2012/09/05/f6d5dcf2-f797-11e1-8398-0327ab83ab91_story.html

[5]            Mark Gollom, “Obama turns to ‘rock star’ Bill Clinton to boost support,” CBC News, 5 September 2012:

http://www.cbc.ca/news/politics/story/2012/09/05/democratic-convention-clinton-obama.html

[6]            Natalie Finn, “Bill Clinton at the Democratic National Convention: Celebs React to Teleprompter-Busting Speech,” E! News, 6 September 2012:

http://ca.eonline.com/news/343617/bill-clinton-at-the-democratic-national-convention-celebs-react-to-teleprompter-busting-speech

[7]            Rebecca Shapiro, “Bill Clinton Media Reactions: Pundits Praise Former President’s DNC Speech, Some Criticize Length,” Huffington Post, 6 September 2012:

http://www.huffingtonpost.com/2012/09/05/bill-clinton-media-reactions-dnc-speech_n_1859892.html

[8]            Rachel Maddow, “’The Rachel Maddow Show’ for Thursday, August 2nd, 2012,” NBC News, 2 August 2012:

http://www.msnbc.msn.com/id/48492324/ns/msnbc-rachel_maddow_show/t/rachel-maddow-show-thursday-august-nd/#.UDXF-ERQhgA

[9]            Josh Halliday, “Burson-Marsteller: PR firm at centre of Facebook row,” The Guardian, 12 May 2011:

http://www.guardian.co.uk/media/2011/may/12/burson-masteller-pr-firm-facebook-row

[10]            Edward Bernays, Propaganda (New York: Ig Publishing, 1928), page 37.

[11]            Andrew Gavin Marshall, “Power, Propaganda, and Purpose in American Democracy,” AndrewGavinMarshall.com, 18 January 2012:

https://andrewgavinmarshall.com/2012/01/18/power-propaganda-and-purpose-in-american-democracy/

[12]            Ibid.

[13]            Ibid.

[14]            Bruce Cummings, “Trilateralism and the New World Order,” World Policy Journal, Vol. 8, No. 2, Spring 1991, page 206.

[15]            Andrew Gavin Marshall, “Punishing the Population: The American Occupations of Haiti and the Dominican Republic,” AndrewGavinMarshall.com, 21 February 2012:

https://andrewgavinmarshall.com/2012/02/21/punishing-the-population-the-american-occupations-of-haiti-and-the-dominican-republic/

[16]            Ibid.

[17]            NYT, “Transcript of Bill Clinton’s Speech to the Democratic National Convention,” The New York Times, 5 September 2012:

http://www.nytimes.com/2012/09/05/us/politics/transcript-of-bill-clintons-speech-to-the-democratic-national-convention.html?pagewanted=all

[18]            Morris Morley and Chris McGillion, “”Disobedient” Generals and the Politics of Redemocratization: The Clinton Administration and Haiti,” Political Science Quarterly, Vol. 112, No. 3, Autumn 1997; David Malone, “Haiti and the international community: A case study,” Survival, Vol. 39, Issue 2, 1997; Scott Turner, “The Dilemma of Double Standards in U.S. Human Rights Policy,” Peace & Change, Vol. 28, No. 4, October 2003.

[19]            Ibid.

[20]            Ibid.

[21]            Helene Cooper and Mark Landler, “U.S. Mulls Role in Haiti After the Crisis,” The New York Times, 17 January 2010:

http://www.nytimes.com/2010/01/18/world/americas/18policy.html

[22]            Andrew Gavin Marshall, “Economic Warfare and Strangling Sanctions: Punishing Iran for its “Defiance” of the United States,” AndrewGavinMarshall.com, 6 March 2012:

https://andrewgavinmarshall.com/2012/03/06/economic-warfare-and-strangling-sanctions-punishing-iran-for-its-defiance-of-the-united-states/

[23]            Najmeh Bozorgmehr, “Sanctions take toll on Iran’s sick,” The Financial Times, 4 September 2012:

http://www.ft.com/intl/cms/s/0/43abcb36-f5cc-11e1-a6bb-00144feabdc0.html#axzz25dqZrNTh

[24]            Andrew Gavin Marshall, “Economic Warfare and Strangling Sanctions: Punishing Iran for its “Defiance” of the United States,” AndrewGavinMarshall.com, 6 March 2012:

https://andrewgavinmarshall.com/2012/03/06/economic-warfare-and-strangling-sanctions-punishing-iran-for-its-defiance-of-the-united-states/

[25]            Molly Moorhead, “Bill Clinton’s night at the Democratic convention,” PolitiFact, 5 September 2012:

http://www.politifact.com/truth-o-meter/article/2012/sep/05/Bill-Clinton-Democratic-convention/

[26]            NYT, “Transcript of Bill Clinton’s Speech to the Democratic National Convention,” The New York Times, 5 September 2012:

http://www.nytimes.com/2012/09/05/us/politics/transcript-of-bill-clintons-speech-to-the-democratic-national-convention.html?pagewanted=all

[27]            Andrew Gavin Marshall, “The Great Global Debt Depression: It’s All Greek To Me,” AndrewGavinMarshall.com, 15 July 2012:

https://andrewgavinmarshall.com/2011/07/15/167/

[28]            Ibid.

[29]            Ibid.

[30]            Reuters, “Justice Department will not prosecute Goldman Sachs, employees for Abacus deal,” Reuters, 9 August 2012:

http://www.reuters.com/article/2012/08/09/us-usa-goldman-no-charges-idUSBRE8781LA20120809

[31]            Andrew Clark, “Bankers and academics at top of donor list,” The Guardian, 8 November 2008:

http://www.guardian.co.uk/world/2008/nov/08/barackobama-wallstreet-bankers-campaign-donations-goldmansachs

[32]            Tracy Greenstein, “The Fed’s $16 Trillion Bailouts Under-reported,” Forbes, 20 September 2011:

http://www.forbes.com/sites/traceygreenstein/2011/09/20/the-feds-16-trillion-bailouts-under-reported/

[33]            James Vicini, “Supreme Court permits no limits on state campaign funds,” Reuters, 25 June 2012:

http://www.reuters.com/article/2012/06/25/us-usa-campaign-court-idUSBRE85O0P520120625

[34]            Jonathan D. Salant, “JPMorgan Employees Join Goldman Sachs Among Top Obama Donors,” Bloomberg, 21 March 2012:

http://www.bloomberg.com/news/2012-03-20/jpmorgan-employees-join-goldman-sachs-among-top-obama-donors.html

[35]            Greg Giroux and Jonathan D. Salant, “Obama Outspends Romney 2-1 With $43 Million in Funds for Ads,” Bloomberg, 21 July 2012:

http://www.bloomberg.com/news/2012-07-20/obama-raises-45-9-million-in-june-to-33-million-for-romney-1-.html

[36]            Peter Nicholas and Daniel Lippman, “Wall Street Is Still Giving to President,” The Wall Street Journal, 3 July 2012:

http://online.wsj.com/article/SB10001424052702303933404577500810740985338.html

[37]            NYT, “Transcript of Bill Clinton’s Speech to the Democratic National Convention,” The New York Times, 5 September 2012:

http://www.nytimes.com/2012/09/05/us/politics/transcript-of-bill-clintons-speech-to-the-democratic-national-convention.html?pagewanted=all

[38]            Jackie Calmes, “Bad Banks, Big Bailouts and Bruises,” The New York Times, 24 July 2012:

http://www.nytimes.com/2012/07/25/books/bailout-by-neil-barofsky.html?pagewanted=all

[39]            Deborah Solomon, “Neil Barofsky, the Democrat Taking Digs at Obama,” Bloomberg, 12 July 2012:

http://www.businessweek.com/articles/2012-07-12/neil-barofsky-the-democrat-taking-digs-at-obama

[40]            AP, “Clinton, Obama threaten to withdraw from NAFTA,” CBC News, 27 February 2008: http://www.cbc.ca/world/usvotes/story/2008/02/27/debate-nafta.html

[41]            CTV, “Obama campaign mum on NAFTA contact with Canada,” CTV News, 29 February 2008:

http://www.ctvnews.ca/obama-campaign-mum-on-nafta-contact-with-canada-1.279448

[42]            Michael Luo, “Memo Gives Canada’s Account of Obama Campaign’s Meeting on Nafta,” The New York Times, 4 March 2008:

http://www.nytimes.com/2008/03/04/us/politics/04nafta.html

[43]            Laura Carlsen, “Obama Reaffirms Promise to Renegotiate NAFTA,” Huffington Post, 12 January 2012:

http://www.huffingtonpost.com/laura-carlsen/obama-reaffirms-promise-t_b_157316.html

[44]            Canwest News Service, “Obama not likely to renegotiate NAFTA, ex-diplomat says,” Canada.com, 13 November 2008:

http://www.canada.com/vancouversun/news/story.html?id=ae15ed12-326f-4187-8cd1-85ceef892b9a

[45]            Michael D. Shear, “NAFTA Renegotiation Must Wait, Obama Says,” The Washington Post, 20 February 2009:

http://www.washingtonpost.com/wp-dyn/content/story/2009/02/19/ST2009021903268.html

[46]            Donna Marykwas, “Secret Trans-Pacific Partnership trade negotiations creating ‘NAFTA on steroids’,” The Examiner, 24 August 2012:

http://www.examiner.com/article/secret-trans-pacific-partnership-trade-negotiations-creating-nafta-on-steroids

[47]            Lori Wallach, “Trans-Pacific Partnership: Under Cover of Darkness, a Corporate Coup Is Underway,” AlterNet, 29 June 2012:

http://www.alternet.org/story/156059/trans-pacific_partnership%3A_under_cover_of_darkness%2C_a_corporate_coup_is_underway?page=0%2C0

[48]            Zach Carter, “Obama Trade Document Leaked, Revealing New Corporate Powers And Broken Campaign Promises,” The Huffington Post, 13 June 2012:

http://www.huffingtonpost.com/2012/06/13/obama-trade-document-leak_n_1592593.html

[49]            Zach Carter, “Obama Trade Document Leaked, Revealing New Corporate Powers And Broken Campaign Promises,” The Huffington Post, 13 June 2012:

http://www.huffingtonpost.com/2012/06/13/obama-trade-document-leak_n_1592593.html

[50]            Josh Eidelson, “Trans-Pacific Partnership: Larger than NAFTA?,” Salon, 14 June 2012:

http://www.salon.com/2012/06/14/trans_pacific_partnership_larger_than_nafta/

[51]            Lori Wallach, “A Stealth Attack on Democratic Governance,” The American Prospect, 13 March 2012:

http://prospect.org/article/stealth-attack-democratic-governance

[52]            Doug Palmer, “Secrecy needed in trade talks: USTR Kirk,” NBC News, 13 May 2012:

http://www.msnbc.msn.com/id/47405479/ns/world_news-americas/t/secrecy-needed-trade-talks-ustr-kirk/#.UEldH0RQhgA

[53]            PC, “Unfair Trade Deals Becoming Even More Unpopular, U.S. Polling Shows,” Public Citizen: www.citizen.org/documents/polling-memo-july-2011.pdf

[54]            Ewen MacAskill and Dominic Rushe, “OECD says US economy is recovering but income inequality problematic,” The Guardian, 26 June 2012:

http://www.guardian.co.uk/business/2012/jun/26/oecd-us-economy-income-inequality

[55]            “Income inequality: Who exactly are the 1%?” The Economist, 21 January 2012:

http://www.economist.com/node/21543178

[56]            Aaron Task, “The ‘American Dream’ Is a Myth: Joseph Stiglitz on ‘The Price of Inequality’,” Yahoo! Finance, 8 June 2012:

http://finance.yahoo.com/blogs/daily-ticker/american-dream-myth-joseph-stiglitz-price-inequality-124338674.html

[57]            Gus Lubin, “23 Mind-Blowing Facts About Income Inequality In America,” Business Insider, 7 November 2011:

http://www.businessinsider.com/new-charts-about-inequality-2011-11#

[58]            Leigh Ann Caldwell, “Obama backtracks on comments that private sector is doing “fine”,” CBS News, 8 June 2012:

http://www.cbsnews.com/8301-503544_162-57449822-503544/obama-backtracks-on-comments-that-private-sector-is-doing-fine/?tag=contentMain;contentBody

[59]            AFP, “Fortune 500 smash profit record; Exxon back on top,” AFP, 7 May 2012:

http://www.google.com/hostednews/afp/article/ALeqM5gbj6XIng0Cu2YL2nn9uBvWN74EgA?docId=CNG.3b6426af1a176d2c5108891890072a79.101

[60]            Christina Rexrode and Bernard Condon, “Record profits for big companies spur 6% rise in CEO pay,” Seattle Times, 25 May 2012:

http://seattletimes.com/html/businesstechnology/2018290135_usceopay26.html

[61]            Ylan Q. Mui, “Americans saw wealth plummet 40 percent from 2007 to 2010, Federal Reserve says,” The Washington Post, 11 June 2012:

http://www.washingtonpost.com/business/economy/fed-americans-wealth-dropped-40-percent/2012/06/11/gJQAlIsCVV_story.html

[62]            Timothy Williams, “As Public Sector Sheds Jobs, Blacks Are Hit Hardest,” The New York Times, 28 November 2011:

http://www.nytimes.com/2011/11/29/us/as-public-sector-sheds-jobs-black-americans-are-hit-hard.html

[63]            Zachary Karabell, “The White House and Jeff Immelt on Jobs: Compelling, Infuriating or Simply Irrelevant?” Time Magazine, 15 June 2012:

http://moneyland.time.com/2011/06/15/the-white-house-jeff-immelt-and-jobs-compelling-infuriating-or-simply-irrelevant/

[64]            Zachary Roth, “With jobs czar under fire, new data confirm offshoring trend,” Yahoo! News, 19 April 2011:

http://news.yahoo.com/blogs/lookout/jobs-czar-under-fire-data-confirm-offshoring-trend-155235152.html

[65]            Susanna Kim, “10 Largest Companies on Obama’s Jobs Council Lost 91K Jobs,” ABC News, 12 October 2011:

http://abcnews.go.com/Business/10-largest-companies-obamas-jobs-council-lost-91000/story?id=14714319#.UEmh3kRQhgA

[66]            David Kocieniewski, “G.E.’s Strategies Let It Avoid Taxes Altogether,” The New York Times, 24 March 2011:

http://www.nytimes.com/2011/03/25/business/economy/25tax.html?pagewanted=all

[67]            Stan Greenberg, James Carville, and Erica Seifert, “Shifting the Economic Narrative,” Democracy Corps/Greenberg Quinlan Rosner Research, 11 June 2012:

www.democracycorps.com

[68]            Ibid.

[69]            Ibid.

[69]            Ibid.

[70]            Ibid.

[71]            NYT, “Transcript of Bill Clinton’s Speech to the Democratic National Convention,” The New York Times, 5 September 2012:

http://www.nytimes.com/2012/09/05/us/politics/transcript-of-bill-clintons-speech-to-the-democratic-national-convention.html?pagewanted=all

[72]            Matthew Creamer, “Obama Wins! … Ad Age’s Marketer of the Year,” AdAge, 17 October 2008:

http://adage.com/article/moy-2008/obama-wins-ad-age-s-marketer-year/131810/

[73]            Mark Sweney, “Barack Obama campaign claims two top prizes at Cannes Lion ad awards,” The Guardian, 29 June 2009:

http://www.guardian.co.uk/media/2009/jun/29/barack-obama-cannes-lions

[74]            Theresa Howard, “Obama Campaign Takes Top Ad Prizes,” ABC News, June 2009:

http://abcnews.go.com/Business/Politics/story?id=7947528&page=1#.UEk6zURQhgA

[75]            PRSA, “White House Press Secretary Robert Gibbs Receives Public Relations Professional of the Year Honors From PRSA,” Reuters Press Release, 5 June 2009:

http://pilot.us.reuters.com/article/2009/06/05/idUS121576+05-Jun-2009+BW20090605

[76]            Barack Obama, “My Plan for Iraq,” The New York Times, 14 July 2008:

http://www.nytimes.com/2008/07/14/opinion/14obama.html

[77]            “Iraq conflict has killed a million Iraqis: survey,” Reuters, 30 January 2008:

http://www.reuters.com/article/2008/01/30/us-iraq-deaths-survey-idUSL3048857920080130

[78]            NYT, “Transcript of Bill Clinton’s Speech to the Democratic National Convention,” The New York Times, 5 September 2012:

http://www.nytimes.com/2012/09/05/us/politics/transcript-of-bill-clintons-speech-to-the-democratic-national-convention.html?pagewanted=all

Crowdfunding a Book for the Revolution

Crowdfunding a Book for the Revolution

By: Andrew Gavin Marshall

A photo I took at the May 22 mass protest in Montreal

Dear Readers and Supporters,

Funding for The People’s Book Project has essentially – despite a few select donations – come to a halt. At the moment, there are not enough remaining funds to sustain the Project past the next week or so. For this reason, I have started a crowdfunding initiative through Indiegogo, a large crowdfunding website, to attempt to raise funds for both the Book Project itself, and to facilitate a trip to Europe, specifically Greece and Spain, in order to undertake research and journalism from the front lines of the economic crisis and anti-austerity revolts. This was done in an attempt to shift the burden of financial support from those who have long supported my work – through my website(s) – to a new audience with a much wider reach than my own, which is very minimal, to say the least.

However, funding through Indiegogo is also currently not sufficient, so I am asking for your help in promoting this initiative, through Facebook, social media, networking, etc. The only way to increase financial support is to increase exposure, and I cannot do this on my own. If you have the means, or are so inclined, your financial contributions would be enormously appreciated as well, either through my website or on Indiegogo. However, it is in the networking, social media, and promotion that I need a great deal of help. I often see the same names who take it upon themselves to help promote my work through social media, and it is incredibly appreciated; just as I often see the same names who provide financial support. While both of these groups – with some overlap between them – are essentially the reason why I have been able to continue independent research and writing up to this point, I need to expand my exposure and bases of support, in order to continue the Project itself, but also to lift some of the burden from those who have consistently supported this Project as it approaches its one-year anniversary.

So, if you have not made a financial contribution, please consider doing so, and just as – if not more – importantly, please help in sharing my articles, book promotions, and the new Indiegogo fundraising page. Your efforts mean a great deal to me, and are enormously appreciated. So thank you for all you have done, and continue to do!

In looking at the objective for the first volume of the Book Project, with a focus on the global economic crisis and global anti-austerity and resistance movements, I feel that I should re-post some of the research and writing that has come about through the generous support of readers and supporters thus far, and of which a great deal will be going into the first volume of the Book.

Starting with the global economic crisis and anti-austerity resistance movements, the following articles, samples, and excerpts have been made possible due to the generous support of readers:

Welcome to the World Revolution in the Global Age of Rage

Austerity, Adjustment, and Social Genocide: Political Language and the European Debt Crisis

Italy in Crisis: The Decline of the Roman Democracy and Rise of the ‘Super Mario’ Technocracy

Super Mario Monti and the Dictatorship of Austerity in Italy

These articles are collectively but a small sample of the actual research and writing which has gone into the Project over the past two months, which has surpassed 300 pages in writing (with over 100 pages on Greece alone!).

On the subjects of education as social control, class warfare, and student movements, the following articles have been made possible: the series, “Class War and the College Crisis.”

Part 1: The “Crisis of Democracy” and the Attack on Education

Part 2: The Purpose of Education: Social Uplift or Social Control?

Part 3: Of Prophets, Power, and the Purpose of Intellectuals

Part 4: Student Strikes, Debt Domination, and Class War in Canada

Part 5: Canada’s Economic Collapse and Social Crisis

Part 6: The Québec Student Strike: From ‘Maple Spring’ to Summer Rebellion?

Part 7: Meet Canada’s Ruling Oligarchy: Parasites-a-Plenty!

Further into the subject of the Quebec student movement, the following work has been made possible due to reader contributions and support:

Ten Points Everyone Should Know About the Quebec Student Movement

From the Chilean Winter to the Maple Spring: Solidarity and the Student Movements in Chile and Quebec

Quebec Steps Closer to Martial Law to Repress Students: Bill 78 is a “Declaration of War on the Student Movement”

Writing About the Student Movement in Québec: You’re Damn Right I’m “Biased”! … Confessions of a Non-Neutral Observer

Québec Students Spark the ‘Maple Spring’

The Maple Spring and the Mafiocracy: Struggling Students versus “Entitled Elites”

On June 11, the Global Elite Gather in Montreal: Will the Maple Spring Say Hello?

Stand Strong and Do Not Despair: Some Thoughts on the Fading Student Movement in Quebec

Organize, Imagine, and Act: How a Student Movement Can Become a Revolution

On the issue of Empire, the following research, samples, and writing have been made available through reader support and donations:

The Predatory Global Empire in Panama: Punishing the Poor

A Revolutionary Idea for a Revolutionary Time: A Plan of Action for the Global Political Awakening

An Education for Empire: The Rockefeller, Carnegie, and Ford Foundations in the Construction of Knowledge

Education or Domination? The Rockefeller, Carnegie, and Ford Foundations Developing Knowledge for the Developing World

The Council on Foreign Relations and the “Grand Area” of the American Empire

The American Empire in Latin America: “Democracy” is a Threat to “National Security”

Organized Terror and Ethnic Cleansing in Palestine

The Kennedy Brothers, State Terror, and Friendly Dictatorships

Punishing the Population: The American Occupations of Haiti and the Dominican Republic

The U.S. Strategy to Control Middle Eastern Oil: “One of the Greatest Material Prizes in World History”

Fighting the “Rising Tide” of Arab Nationalism: The Eisenhower Doctrine and the Syrian Crisis

Economic Warfare and Strangling Sanctions: Punishing Iran for its “Defiance” of the United States

Bringing Down the Empire: Challenging the Institutions of Domination

All of this does not even begin to truly cover the amount of extensive research and writing which has been undertaken in the past year, a good deal of which will be integrated into the first volume of the Book. Again, ALL of this has only been made possible due to the support of readers.

Readers and supporters have also undertaken – of their own initiative – to kindly translate some of my articles into foreign languages, simply because they chose to do so, and for which they received no financial compensation.

Among the French translations of some of my articles are:

De la dépression économique globale a la gouvernance mondiale

La politique économique du gouvernement global

Fermons la réserve fédérale mais ne nous arrêtons pas en si bon chemin!

L’éveil politique et le nouvel ordre mondial

Contre l’Institution, avertissement au mouvement Occupy Wall Street

Un court message pour l’humanité: nous voulons être libres !

De l’anarchie: Une Interview

A Greek translation of my article:

“Be the Change: A 12-Point Proposal for the Occupy Movement”

An Italian translation of one of my recent articles on the European debt crisis:

“Il linguaggio Orwelliano dietro la crisi della zona Euro”

And in Spanish translations:

“La ‘Crisis de la Democracia’ y el ataque a la educación”

Movimiento estudiantil, dominación por deudas y lucha de clases en Canadá

Del Invierno Chileno a la Primavera Canadiense: ¡Solidaridad!

Quebec se acerca a la ley marcial para reprimir a estudiantes

“Bienvenido a la revolución mundial en la era de furia global”

 

So thank you, sincerely, for all of your support over this past year. I could not have done any of this without you, and it’s only possible – and will only be possible in the near future – because of your support. And I will thank you in advance for helping to promote my writing, research, and fundraising campaign on Indiegogo.

In Solidarity, now and always,

Andrew Gavin Marshall

Andrew Gavin Marshall is an independent researcher and writer living in Montreal, Canada. His website (www.andrewgavinmarshall.com) features a number of articles and essays focusing on an analysis of power and resistance in the political, social, and economic realms. He is Project Manager of The People’s Book Project, and is currently writing a book on the global economic crisis and resistance movements emerging around the world. To help this book come to completion, please consider donating through the website or on Indiegogo.

Organize, Imagine, and Act: How a Student Movement Can Become a Revolution

Organize, Imagine, and Act: How a Student Movement Can Become a Revolution

By: Andrew Gavin Marshall

From the London student protests, 2010

And so it seems that the student strike in Quebec is slowing down and nearing an end, as the college – CEGEPs – in Quebec have voted to return to class, with roughly 10,000 students having voted to continue the strike, a far reduction from the 175,000 students that were on strike in late April and early May. The strike began in February of 2012 in opposition to a planned 75% increase in the cost of tuition. The students mobilized massive numbers, held mass protests, undertook picket lines at schools, expanded the issue into a wider social movement, and were consistently met with state violence in the form of riot police, pepper spray, tear gas, beatings with batons, being shot with rubber bullets, even being trampled by horses and driven into by police cars. The government enacted Bill 78, assaulting the rights to freely assemble and speak, and put a ‘pause’ on the school semester to end picket actions. Now that the school semester is starting back up again, and an election looms in the coming weeks, the students are being led away from the streets and into voting booths. The ‘Maple Spring’ has become the ‘Fall Election’.

Meanwhile, in Chile, where a student movement that began in May and June of 2011, mobilized against a highly privatized education system, is continuing with renewed energy. There had been ups and downs of actions and mobilizations within Chile over the past 15 months, but in mid-August of 2012, the resurgence was seen as students began occupying high schools, blocking streets, and undertaking mass protests. Students who took part in the occupations were threatened with having their scholarships removed. In over a year of protesting, the students have not seen any meaningful changes to their educational system, or even inclinations that those in power were listening to their demands with anything other than disdain and contempt. The students have long been met with state violence, from the oppressive apparatus of a former military dictatorship, fighting an educational system which was established near the end of the military dictatorship. Riot police would meet students with tear gas, water cannons, batons, mass arrests, and other forms of assault. Police have subsequently stormed the high schools and arrested over a hundred students participating in the occupations. This caused the university students to get more involved, and they occupied the Universidad de Chile, which had not been occupied since the beginning of the movement the previous year (often known as the Chilean Winter).

In Chile, as in Quebec, protests and marches and even the right to demonstrate are frequently declared to be illegal. In both Chile and Quebec, when protests erupted into violence (which is more often than not incited by the police themselves), these are called “riots,” and they are used in the media and public discourse to portray the movements as violent, extremist, trouble-makers, vandals, and criminals. This is designed to reduce public support for the protests (which was far more successful in Quebec than Chile), and to subsequently dismiss the demands of the students. There are, in fact, a wider variety of similarities and interesting comparisons between the Chilean Winter and the Maple Spring. Chilean students and academics have even expressed solidarity with the Quebec student movement.

We face an issue here. The student movements don’t seem to be getting anywhere substantial in terms of establishing some sort of meaningful change. This is not to say they have not achieved anything; quite the opposite, in fact. The student movements have been successful at mobilization large numbers of people, organizing protests and indeed, in politicizing a generation, which is their most sincere and important success to date. Students have suffered under propaganda campaigns, violent repression, legal intimidation, and, most of all, the determination of an elite who view any and every minor concession as the ultimate unthinkable sacrifice which would ruin all of society. In short, elites are more stubborn than students could ever seem to be, and they have the means to hold their position and tire the students out if they can’t simply scare them away or crush them down. So, while symbolic actions and political radicalization are necessary achievements, the will to continue taking actions and the hope to manifest radical ideas becomes worn down, demoralized, and sapped of its strength. This is incredibly challenging to revive if the circumstances and courses of action do not change.

So perhaps it is time for a new tactic. Instead of having radicalization follow mobilization, students could begin to have radicalization guide mobilization. For any social movement to advance, grow, and become something not simply demanding reforms, or demanding something from power, it needs to provide something to the students, to the communities, and the public at large; it needs to create. This is the difference between a reformist movement and a revolutionary movement. In this context, the word ‘revolutionary’ is not used to imply a usurping of state power and violent overthrow of authority, but rather  to transform on a radical scale our conception and participation in specific or all sectors of society. Thus, it is essential to provide new ideas for action, rather than discussing and debating the new terms of capitulation. It can make all the difference between a question of how little students will get from their demands, to a question of how much we can get from a new educational structure itself. A discussion of new ideas must replace – or coincide with – the articulation of ignored demands.

How is this possible? What might this look like?

For students, the fundamental issue is education. For the student movements, growth came from expanding the issue into a wider social one, and linking up with other organizations and causes. This expands the scope, and thus, the base of support for a student movement. However, established unions played a large role in guiding (or attempting to guide), fund, and organize in cooperation with student movements. While the cause of workers is an issue that must be engaged with, the established unions that have survived to this point, roughly thirty years into the global neoliberal era, have survived only because they function on a basis of cooperating with the established powers of society, the state and corporations. They are corporatist institutions.

Over one hundred years ago, unions were extremely radical, organized, massive, and revolutionary. The actions and ideas of radically organized labour were the impetus for 8-hour work days, weekends, pensions, job security, benefits, an end to child labour, and much more. Unions subsequently faced roughly a century of battering, violence, co-optation, and destruction. Those which remain are not radical, but only slightly reformist. I say ‘slightly’ because they do not mobilize to fight for new ideas or issues, but only to protect and preserve the reforms previously implemented as a result of radical labour agitation. Thus, union representative serve as a buffer for the blunt force of the state and organized capital and corporate interests which consistently seek to undermine and exploit labour. The major unions typically serve to soften the blow against workers as the elite bring down the hammer. Under this system, all rights, benefits, security and protections are slowly and inevitably worn down and thrown away. When the established unions provide funds and direction for the student movements, they tend to steer them away from radical or revolutionary paths, and promote a highly reformist direction, and which can only be undertaken through negotiation with and capitulation to the state and corporate interests. This gets us to where we are.

When it comes to engagement and interaction, solidarity, and cooperation with labour, it should, in fact, be the more radical – and radically organized – students who lead the unions back to a more radical direction, to take them back to their origins when they achieved successes instead of softened failures. If they refuse to follow a radical direction, then students should encourage and attempt to find means of supporting the organization of new labour organizations: provide assistance, direction, ideas and physical and moral support. Students could be mobilized into the streets for workers’ rights as well as educational rights.

The main point here is that for a movement to radicalize and become revolutionary, it must cooperate with, support, and be supported by other radical and revolutionary organizations and movements. If the more dominant force is reformist, established, and corporatist (by which I mean its functioning ideology is accepting of the state and corporate dominated society), then these organizations will attempt to co-opt, direct, and steer your movement into an area ‘safe’ for the elites, if not altogether undermined and eliminated. It is not necessarily done out of an insidious desire to destroy your student movements, but rather the result of an insidious ideology embedded within the very functions of their organizations. Thus, integration, mutual support, dependency and interaction with other social movements must take place at a radical and revolutionary level if you are to sustain that potential and desire within your own movement. It’s unfortunate, because it’s more difficult; but it’s true, all the same.

Therefore, what is required are radical ideas of organization: for the student associations and other associations they interact with to be more accountable, directly, to their constituents. Instead of elected delegates or representatives making all the decisions (which is how our governments function), the decisions must be made by the constituents, and the representatives merely carry them out and organize accordingly. The student associations in Quebec and elsewhere function more along these radical lines, while labour and other groups typically do not. If student associations do not function in this manner, that is the first issue which must be addressed: either demand the associations to change, or create new ones and thereby make the unrepresentative ones obsolete. Thus, for a student movement to become revolutionary, the first step is the radicalization of organization.

Now onto something more interesting: how to radicalize ideas and actions in education itself. This next step is about the radicalization of action. While the first step, in many instances – the radicalization of organization – had been achieved in several of the student movements, the actions themselves lacked radicalization. The actions were largely confined to mass demonstrations, picket lines, school occupations, and youth rebellion against state violence and repression. These are all important actions on their own: establishing solidarity, power in numbers, a public presence, a demonstration of will and power, the development of ‘self-esteem’ for a social movement. These are necessary, but if the actions do not evolve, the movement itself cannot evolve. Thus, what is required at this point is a discussion of new ideas of action. Typically, as is the case at the moment in Quebec, students are being told to stay out of the streets and go to the voting booth, where “real” change can be made. This is illusory and useless. Unless there is a radical party, the best that can be hoped for is to delay the inevitable assault on education, or perhaps achieve a minor concession, which would likely be more of an insult than incentive.

New ideas of action must come from the students themselves, and there are a number of initiatives that could be discussed and undertaken. Fundamentally, instead of demanding from power, create something new. If education is what you want, begin to do it yourselves. In the case of a school occupations, why should the students not simply begin to have discussions on issues, share knowledge, invite professors, academics, and others who are supportive of the movement to come talk and share their knowledge?

This does not need to only take place in occupied schools, though that would be quite symbolic, but could essentially take place in any public space. It would function as a type of grassroots educational system, designed to share and expand knowledge, not to prepare you for the workforce. Job opportunities are already vanishing everywhere for youth, and they will continue to do so as the economic crisis gets worse. These types of educational forums could potentially be designed to educate and share knowledge on issues of relevance to the student movements themselves: the history of education, protest and social movement history, political power, repression, the economic system – Capitalism, neoliberalism, etc. This could – and should – expand into much larger issues and areas of knowledge, including arts, the sciences, philosophy, etc. There are already people within society who have gained their knowledge through educational institutions, and thus, there are already people from whom to draw this knowledge from in a new forum, and in a new way.

To give an example, imagine a ‘class’ (or forum) on the history of social struggles. First, a physical space is required, so to set up in a park, public venue, rent a space, or occupy a space (such as a school lecture hall). The students should have previously discussed – likely through social media networks – which intellectuals and individuals they would like to invite to come speak to them about the issue. The invited speakers would share their knowledge on the history of social struggles, promote discussion, debate one another, and engage directly with the students. For every invited outside speaker, a student should be invited to speak also, to share their own knowledge and engage on an equal basis. The notion that students are there only to learn and not teach is an incorrect one, and it’s a misnomer that should be addressed and acted upon.

The public at large should also be accepted into these educational forums. The point should be to expand knowledge and discussion among the general population, not merely the students. But the students are the ones capable of providing this forum for the population at large. To add to this: such forums should be broadcast through social media, filmed and recorded, watched online both live and archived. Students could organize ‘subject collectives’, perhaps having a group of students organized along the lines of the larger student associations (through direct democracy), who would oversee the organization of each subject or issue: history of social movements, political economy, media studies, etc. Each ‘collective’ could establish its own website, where the wider community would be encouraged to engage, support, recommend speakers and issues and venues, watch archived or live-feed forums, debate in online forums, be notified of events and speakers, and be provided with educational material, reading sources, etc. The students could write papers which would then be posted publicly on such sites, to promote discussion and to actually use the knowledge instead of writing papers for a grade, which is a rather absurd notion. These sites could have news sections, providing relevant news and developments from around the world related to their issue. The collective itself – both within the community and online – then becomes a forum for the development and extension of knowledge to a much larger sector of society, locally and globally.

This is where the actions become even more important. For a social movement to survive and expand into a revolutionary movement, it must not isolate itself, and must engage and interact directly with the wider population. The best way to do this, and one which has the added necessary effect of increasing the movement’s support among the population, is to provide a service or need. In the case of a student movement: that need is education. Merely ‘opening up’ forums to the public may not be enough. Students or ‘subject collectives’ could individually organize smaller meetings and discussions, in neighbourhoods and venues all over the city, region, or country, where students themselves speak with and to the public on issues in which they have been getting their education.

In Quebec, where students have been consistently framed by the media and elites as “entitled brats,” this tactic would be a means to share our so-called ‘entitlements’ with the wider population, and at no cost to them. Thus, as students gain knowledge, they share knowledge with others. For example, a couple history students could hold a small forum at a cafe or in a small public location which they had promoted within the neighbourhood and on social media for people to freely come to listen and engage in a discussion about a particular history topic. Of course, knowledge in such circumstances should not simply be abstract or obtuse, but relevant to those who are engaging with it. So if the discussion is on a ‘history of social movements,’ students should share knowledge on this, but make it relevant to the current social movement, to the social conditions of the wider population, and ask questions and engage with others in the venue: to promote discussion and debate. Thus, instead of the public viewing students as ‘entitled’, they may come to view students as ’empowering.’

This type of tactic would especially have to be employed within poor communities, and oppressed communities, where students would have to be willing to listen and learn more than they would be inclined to speak and teach. This is because many student movements, simply by their position as being students, generally come from a more privileged sector of society than the really poor, minority, immigrant, or otherwise oppressed communities. These sectors largely remain in the sidelines of the student movements themselves. This must change, and for a very fundamental reason: there is a great deal to learn from these communities. Oppressed peoples have experienced and known for a much longer period of time what the majority of students are only just starting to learn and experience: the true nature and interest of power, the violent and oppressive state apparatus, the underbelly of the economic system, the reality of social existence for a great many people. In short, it would be a means through which to educate the students on deeper issues of social strife, by listening and speaking directly to and with those who exist within oppressed social spheres.

But there cannot be any taking without giving. So while oppressed communities may perhaps be willing to share their own knowledge with students and engage in discussion and debate, the students must provide something back to these communities. There is a very simple way to get this started: ask them what they need most in their communities. For example, if one community cited the cost and quality of food as a central issue, students could then leave the first meeting with the community with the intent to organize and plan around this issue. The students could hold their own discussions, meetings, debates, and share ideas on how to help resolve this specific issue within that specific community, and then propose various ideas to those community leaders. The ideas would be subject to critique, dismissal, support, etc, to go back to the drawing board with new suggestions or to get to work, putting action to the ideas.

So with the issue of food, for example, students could perhaps organize around the idea of establishing a community food garden, proposing it to the community, and, if approved and critiqued, they could find an area of land, get the support and materials they need, and work with members of that community to plant and establish such a garden, to help move toward some form of food sustainability, provided either free or cheap to those within that area. Potentially, there could be a student educational association which specialized in sharing knowledge about nutrition, horticulture, etc., and they could be brought in to share their knowledge, help in the endeavour, or even make it a staple feature of their functioning: to go to different communities to help establish food sustainability.

These are, of course, just ideas of actions, there is no reason to follow this specific outline. This is meant to merely promote the discussion of this concept: the actions, organizations, and objectives which would result from a radicalization of action are likely to be far more varied, interesting, and effective than these mere suggestions. However, I used these examples of actions and ideas to show how a student movement protesting against something (such as a tuition increase), can become a revolutionary movement for something.

These actions are revolutionary because they force people to question and reconsider their conceptions of education, its manifestation, its purpose, its institutionalization, philosophy, etc. The actions themselves engage directly with people, drawing from and providing to the population as a whole. This increases support among the population, but also greatly strengthens the ideas and actions of the students themselves. At such a conceivable point, it could not be called a ‘student movement,’ but could only be identified as a much wider social movement, which would help radicalize the wider society itself, which would in turn provide new ideas and actions to the students; solidarity in both words and actions.

These actions are revolutionary because they attempt to maneuver around power structures instead of expending all of their energy on directly battling the power structure itself. By going around the power structure – around the state, the schools, the corporations, etc. – the students would create a parallel educational structure within society, making the existing one increasingly obsolete. As this is done, the bargaining power of the state and other structures is reduced, because the students no longer rely exclusively upon them for an education. The state would most certainly attempt to repress such a movement, or perhaps even to offer much larger incentives, concessions, or even meet the previous demands of students in order to get them back in the schools and within an educational system that power controls. The state is well-established to deal with direct confrontations: that’s what police, armies, guns, badges and lawyers are for. It doesn’t matter who you are, what you’re demanding, or where you are demanding it, the state can simply tear gas you, scare you, disperse you, and wait you out. But to move around the power structure, and to create and establish something new, not under the control or direction of established institutions of power, the power structures become very nervous and insecure.

It would be foolish to think that the power structures would not respond with more state violence than they have up until present, they most certainly would. The primary difference, however, would be that the public support for the movement would have conceivably exploded, and in the case of increased violence, it would explode in anger and opposition to the state. In short, while the state would be likely to increase its tactics of intimidation and violence, the public response would likely be far more powerful than anything we have seen thus far. We saw an example of this in Quebec, when the government passed the repressive Bill 78 and a much larger segment of the population was mobilized in opposition to the government. However, this has now largely faded, and again, it’s about the difference between mobilizing against something and mobilizing for something. It’s the difference between opposition and proposition, demand and action.

The fundamental idea which I am arguing is that for a student movement to become a revolutionary movement, it must transform its demands of education into actions for education. If the issue is education, the answer is education. The inability of the student movements to have their demands met reveals a deeply-ingrained flaw in our society: that an institution does not reflect or respond to the demands of its supposed constituents. This fact makes that institution illegitimate. This flaw further manifests itself across the entire society. If the government itself, which is supposedly ‘representative’ of the people, does not reflect the intentions and interests of the population, then it is illegitimate. Most institutions do not even have a means for their constituents to have a say in who runs the institutions themselves. Some, such as governments or unions, may have elections in which people can choose candidates, but then all the other decisions are taken out of their hands. Other institutions, such as schools, corporations, banks, media, etc., do not even have a means for constituents to select leadership, let alone direction and action. University boards are populated with bankers, former government officials, corporate executives, foundation officials, and other established elites. Therefore, universities are geared toward meeting elite interests under their direction. This is flawed and wrong. Though, because most institutions function in this way across wider society, it tends to go unnoticed and is simply accepted as “the way it is.”

Students must now ask: Does it have to be this way? What other way could it be? What should change? How could that change? What is the intent of education? These questions lead to other, larger questions about the society as a whole, and, as a result, they make necessary the wider radicalization, organization, and revolution of society itself. It is a rather large idea, but I think it is also a logical one. As the economic and social circumstances for most people continue to deteriorate in the near future – and perhaps rapidly so as the global economic crisis accelerates – such ideas and actions will become all the more necessary and will generate much more support.

Since the beginning of the global economic crisis in 2007 and 2008, the world has seen a rapid acceleration of resistance movements, protests, and revolutionary struggles. The world is rumbling awake from a long lost slumber of consumption and consent as the situation of crisis reveals deep flaws in the structures, ideology, and actions of power. We are witnessing the rapid proliferation of global resistance movements, but it requires much more for them to become global revolutionary movements. It has only begun, but it requires new ideas and actions to move forward. It would potentially be very challenging to begin such actions now, but in the very least, student movements should begin to advance the discussion, to debate the direction, and to incite new ideas. These are, after all, the skills that an education is supposed to provide us with.

Perhaps it is time to put our education to use.

Andrew Gavin Marshall is an independent researcher and writer living in Montreal, Canada. His website (www.andrewgavinmarshall.com) features a number of articles and essays focusing on an analysis of power and resistance in the political, social, and economic realms. He is Project Manager of The People’s Book Project, and is currently writing a book on the global economic crisis and resistance movements emerging around the world. To help this book come to completion, please consider donating through the website or on Indiegogo.