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Who Rules Europe?
By: Andrew Gavin Marshall
22 July 2015
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Blaming the Victim: Greece is a Nation Under Occupation
By: Andrew Gavin Marshall
17 July 2015
In the early hours of Thursday morning, July 16, the Greek Parliament passed a host of austerity measures in order to begin talks on a potential third bailout of 86 billion euros. The austerity measures were pushed onto the Parliament by Greece’s six-month-old leftist government of Syriza, elected in late January with a single mandate to oppose austerity. So what exactly happened over the past six months that the first anti-austerity government elected in Europe has now passed a law implementing further austerity measures?
One cannot properly assess the political gymnastics being exercised within Greece’s ruling Syriza party without placing events in their proper context. It is inaccurate to mistake the actions and decisions of the Greek government with those taken by an independent, sovereign and democratic country. Greece is not a free and sovereign nation. Greece is an occupied nation.
Since its first bailout agreement in May of 2010, Greece has been under the technocratic and economic occupation of its bailout institutions, the European Commission, the European Central Bank (ECB), and the International Monetary Fund (IMF). For the past five years, these three institutions known as ‘the Troika’ (though now referred to as ‘the Institutions’) have managed bailout programs in Greece and other nations of the eurozone. In return for loans, they got to dictate the policies and priorities of governments.
Behind the scenes, Germany rules an economic empire expanding across Europe, enforcing its demands upon debtor nations in need of aid, operating largely through the European Union’s various institutions and forums. Germany has consistently demanded harsh austerity measures, structural reforms, and centralization of authority over euro-member nations at the EU-level.
Greece has served as a brutal example to the rest of Europe for what happens when a country does not follow the orders and rules of Germany and the EU’s unelected institutions. In return for financial loans from the Troika, with Germany providing the largest share, Greece and other debtor nations had to give up their sovereignty to unelected technocrats from foreign institutions based in Brussels (at the European Commission), Frankfurt (at the ECB), Washington, D.C. (at the IMF), and with ultimate authority emanating from foreign political leaders in Berlin (at the German Chancellery and Finance Ministry).
The Troika would send teams of ‘inspectors’ on missions to Athens where they would assess if the sitting government was on track with its promised reforms, thus determining whether they would continue to disburse bailout funds. Troika officials in Athens would function as visiting emissaries from a foreign empire, accompanied by bodyguards and met with protests by the Greek people. The ‘inspectors’ from Brussels, Frankfurt and Washington would enter Greek government ministries, dictating to the Greek government and bureaucracy what their priorities and policies should be, with the ever-present threat to cut off funds if their demands were not followed, holding the fate of successive governments in their hands. Thus, unelected officials from three undemocratic and entirely unaccountable international institutions were dictating government policy to elected governments.
In addition to this immense loss of sovereignty over the past five years, Greece was subjected to further humiliation as the European Commission established a special ‘Task Force for Greece’ consisting of 45 technocrats, with 30 based in Brussels and 15 at an outpost in Athens, headed by Horst Reichenbach, dubbed by the Greek press as the ‘German Premier’. European and German officials had pushed for “a more permanent presence” in Greece than the occasional inspections by Troika officials. Thus, the Task Force was effectively an imperial outpost overseeing an occupied nation.
When a nation’s priorities and policies are determined by foreign officials, it is not a free and sovereign nation, but an occupied country. When unelected technocrats have more authority over a nation than its elected politicians, it is not a democracy, but a technocracy. Germany and Europe’s contempt and disregard for the democratic process within occupied (bailout) countries has been clear for years.
When Greece’s elected Prime Minister George Papandreou called for a referendum on the terms of Greece’s second bailout in late 2011, German Chancellor Angela Merkel, French President Nicolas Sarkozy, and Europe’s unelected rulers were furious. The economic occupation and restructuring of a nation was too important to be left to the population to decide. Europe’s leaders acted quickly and removed the elected government from power in a technocratic coup, replacing Mr. Papandreou with the former Vice President of the European Central Bank, Lucas Papademos. Thus, a former top official of one of the Troika institutions was put in direct control of Greece.
Papademos, who was not elected but appointed by foreign powers, had two major mandates from his German-Troika overlords: impose further austerity and conclude an agreement for a second bailout. Within a week of the coup, the EU and IMF demanded that the leaders of Greece’s two large political parties, New Democracy and PASOK, “give written guarantees that they will back austerity measures” and follow through with the bailout programs.
Troika officials and European finance ministers wanted to ensure that regardless of what political party wins in future elections, the Troika and Germany would remain the rulers of Greece. Troika officials threatened that unless political party leaders sign written commitments they would continue to withhold further bailout funds from being disbursed to Greece. So the leaders signed their commitments. The leaders of Greece’s two main political parties, Antonis Samaras (New Democracy) and Evangelos Venizelos (PASOK), which had governed the country for the previous several decades, “became reluctant partners, propping up a new prime minister.” In February of 2012, the new Greek government agreed to a second major bailout with the Troika and Germany, thus extending the economic occupation of the country for several more years.
Greece was set to hold elections in April of 2012 to find a suitable ‘democratic’ replacement for the ‘technocratic’ government of Lucas Papademos. But German Finance Minister Wolfgang Schauble was growing impatient with Greece, and publicly called for the elections to be postponed and to keep a technocratic government in power for longer. As the Financial Times noted in February of 2012, the European Union “wants to impose its choice of government on Greece – the eurozone’s first colony,” noting that Europe was “at the point where success is no longer compatible with democracy.”
But the elections ultimately took place in May of 2012, though Greece’s fractured political parties failed to form a coalition government, and thus set the country on course for a second round of elections the following month. The May elections were seen as a major rejection of the bailouts and the two parties that had dominated Greece for so long, marking the rise of the neo-Nazi Golden Dawn party on the far-right and Syriza on the left.
But with a second round of elections set for June of 2012, Europe’s leaders repeated their threats to the democratic process in Greece. The Troika threatened to withhold bailout funds until the next government approved the package of reforms demanded by the creditors. Jorg Asmussen, a German member of the Executive Board of the ECB, warned, “Greece must know that there is no alternative to the agreed to restructuring arrangement, if it wants to stay a member of the euro zone.” The German President of the European Parliament, Martin Schulz, said that, “The Greek parties should bear in mind that a stable government that holds to agreements is a basic prerequisite for further support from the euro-zone countries.” As Philip Stephens wrote in the Financial Times, “As often as Greece votes against austerity, it cannot avoid it.”
At a May meeting of the Eurogroup of finance ministers, it became clear that Europe’s rulers were increasing their threats and ultimatums to Greece. “If we now held a secret vote about Greece staying in the euro zone,” noted Eurogroup President Jean-Claude Juncker (who is now president of the European Commission), “there would be an overwhelming majority against it.”
When the second elections were held the following month, the conservative New Democracy party won a narrow victory over Syriza, forming a coalition with two other parties in order to secure a majority to form a new government. Upon the announcement of a new coalition government on June 20, 2012, Chancellor Angela Merkel of Germany warned that Greece “must stick to its commitments.” Antonis Samaras of New Democracy was the third prime minister of Greece since the bailout programs began in 2010, and led the country as a puppet of its foreign creditors until his government collapsed in late 2014 and he called for elections to be held at the end of January of 2015.
Upon the collapse of the government, Alexis Tsipras, the leader of Syriza, declared that, “austerity will soon be over.” German Finance Minister Wolfgang Schauble warned that new elections in Greece “will not change any of the agreements made with the Greek government,” which “must keep to the contractual agreements of its predecessor.”
Jean-Claude Juncker, who was the newly-appointed (unelected) President of the European Commission, warned that Greeks “know very well what a wrong election result would mean for Greece and the eurozone,” adding that he would prefer “known faces” to rule Greece instead of “extreme forces,” in a reference to Syriza. A couple weeks before the elections, the European Central Bank threatened to cut its funding to Greece’s banking system if a new government rejected the bailout conditions.
Syriza won the elections on January 25, 2015, forming a coalition government with the Independent Greeks, a right-wing anti-austerity party. Alexis Tsipras, who would become Greece’s fourth prime minister in as many years, declared “an end to the vicious circle of austerity,” adding, “The troika has no role to play in this country.” Christine Lagarde, the Managing Director of the IMF, warned, “There are rules that must be met in the eurozone,” while a member of the executive board of the ECB added, “Greece has to pay, those are the rules of the European game.”
Nine days after the election, the ECB cut off its main line of funding to Greek banks, forcing them to access funds through a special lending program which comes with higher interest rates. Mark Weisbrot of the Center for Economic and Policy Research suggested that following Syriza’s election victory, the strategy of European officials was “to do enough damage to the Greek economy during the negotiating process to undermine support for the current government, and ultimately replace it.” The ECB, under its President Mario Draghi, quickly took a hardline approach to dealing with Greece, increasing the pressure on Athens to reach a deal with its creditors.
In early March, the ECB added pressure on Greece by indicating that it would only continue lending to Greek banks once the country complied with the terms of the existing bailout. On 9 March, a meeting of the Eurogroup was held where ECB president Mario Draghi warned the Greeks that they must let Troika officials return to Athens to review the country’s finances if they ever wanted any more aid. The same message was delivered by officials of the European Commission and the IMF. The Greeks were forced to comply. As negotiations continued, it became increasingly clear that the unelected institutions of the IMF and ECB had immense power over the terms and conditions of the talks.
Negotiations were dragged out, and the economy continued its collapse. By mid-June, Prime Minister Tsipras accused the creditors of “trying to subvert Greece’s elected government” and encourage “regime change.” James Putzel, a development studies professor at the London School of Economics (LSE) noted that Greece was being forced to choose between more austerity and reforms under Troika demands, or being booted from the eurozone and losing the common currency (something which the Greek people did not want). “Greece’s creditors,” he wrote, “seem bent on forcing the demise of the Syriza government.” Robert H. Wade, a political economy professor at LSE agreed, referring to the strategy as a “coup d’état by stealth.”
In late June, as Greece was faced with an ultimatum to implement more austerity or be pushed out of the eurozone, Alexis Tsipras threw out the wild card option in a final attempt to gain a better negotiating position by calling for a referendum on the terms demanded by the Troika and creditors. Europe’s leaders reacted as they did the previous time a Greek Prime Minister called for a referendum, and moved to put the squeeze on the economy. The ECB froze the level of its emergency aid to Greek banks, forcing bank closures and capital controls to be imposed on the country, essentially cutting off the flow of money to, from, and within Greece.
Chancellor Merkel, French President Francois Hollande and Commission President Jean-Claude Juncker “coordinated how they would respond” to the Greek government’s call for a referendum. As Mr. Tsipras publicly campaigned for a ‘No’ vote (which would reject the terms of the bailout), Europe’s leaders pushed for a ‘Yes’ vote, attempting to redefined the terms of the referendum as not being about the bailout, but about membership in the eurozone, threatening to kick Greece out if they voted ‘No’.
As Paul Krugman noted in the New York Times, the ultimatum agreement that was delivered to the Greeks by the Troika was “indistinguishable from the policies of the past five years,” and was thus meant to be an offer that Tsipras “can’t accept, because it would destroy his political reason for being.” The purpose, wrote Krugman, “must therefore be to drive him from office.” Mark Weisbrot wrote in the Globe & Mail that, “European authorities continue to take steps to undermine the Greek economy and government, hoping to get rid of the government and get a new one that will do what they want.”
Europe’s leaders increased their threats to Greece in the run-up to the referendum, warning the country that voting ‘No’ would mean voting against Europe, against the euro, and result in isolation and further crisis. But Greece voted ‘No’ in a landslide referendum on July 5, 2015, in a massive rejection of austerity and the bailouts.
Mr. Tsipras made a gamble with the referendum, hoping that a further democratic mandate from the Greek people would give him a stronger hand in negotiations with the creditors. But the opposite happened. Europe’s leaders instead decided to completely ignore and dismiss the wishes of the Greek people and continued to put the squeeze on Greece, whose economy was pushed to the brink so far that Mr. Tsipras announced the country’s intentions to enter into negotiations for a third bailout program. On July 10, the Greek government submitted a formal bailout request to its creditors.
Europe, noted the Wall Street Journal, was “demanding full capitulation as the price of any new bailout.” The Greek government was betting that Europe wanted to keep Greece in the euro more than Greece wanted to get away from austerity, but Germany – and in particular, Finance Minister Wolfgang Schauble – were willing to back a ‘Grexit’ scenario in which Greece would be given a five-year “timeout” from the eurozone. As Paul Krugman noted, “surrender isn’t enough for Germany, which wants regime change and total humiliation.”
As Greek leaders negotiated with their European counterparts over the possibility of a new bailout, it became clear that Greece was in for a reckoning. The demands that were being made of Greece, wrote Krugman, went “beyond harsh into pure vindictiveness, complete destruction of national sovereignty, and no hope of relief.” The lesson from the past few weeks, he added, was that “being a member of the eurozone means that the creditors can destroy your economy if you step out of line.”
Financial journalist Wolfgang Münchau wrote in the Financial Times that Greece’s creditors “have destroyed the eurozone as we know it and demolished the idea of a monetary union as a step towards a democratic political union.” The eurozone was instead “run in the interests of Germany, held together by the threat of absolute destitution for those who challenge the prevailing order.” With Germany threatening to kick Greece out of the euro for failure to capitulate entirely, this amounted to “regime change in the eurozone.” As Münchau wrote: “Any other country that in future might challenge German economic orthodoxy will face similar problems.”
After 22 hours of talks, Greece was forced to agree to the new terms. The Greek government would have to pass into law a set of austerity measures and reforms before Europe’s leaders would even begin talks on a new bailout. “Trust needs to be restored,” said Chancellor Merkel. A new fund would have to be established in Greece, responsible for managing the privatization of 50 billion euros of Greek assets. As the Wall Street Journal noted, the deal “includes external control over Athens’s financial affairs that no eurozone bailout country – even Greece until this point – has had to endure.” The Financial Times called it “the most intrusive economic supervision programme ever mounted in the EU.” Tony Barber wrote that the conditions set for the country were so strict that “they will turn Greece into a sullen protectorate of foreign powers.” One eurozone official who attended the summit at which Greece conceded to the German demands commented, “They crucified Tsipras in there.”
And so after six months of a Syriza-led Greece it is evident that Syriza does not rule Greece, Germany and the Troika do. What Syriza’s “capitulation” tells us is not that the party betrayed its democratic mandate from the Greek people, but that staying in the euro is a guarantee that no matter who is elected, they are little more than local managers of a foreign occupation government.
Blaming Mr. Tsipras and the Greeks for the current predicament is a bit like blaming a rape victim for getting raped. It doesn’t matter how they were ‘dressed’, or if they ‘could’ have fought back, because it’s ultimately the decision of the rapist to commit the crime, and thus, the rapist is responsible.
Syriza could become a party of liberation, of a proud, sovereign and democratic nation. But this is only possible if Greece abandons the euro. Until then, the Greek government has about as much independent power as the Iraqi government under American occupation. Syriza made several gambles in negotiations with the country’s creditors, most of which failed. But Greece was never on an equal footing.
Andrew Gavin Marshall is a freelance researcher and writer based in Montreal, Canada.
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Between Berlin and a Hard Place: Greece and the German Strategy to Dominate Europe
By: Andrew Gavin Marshall
7 July 2015
“They just wanted to take a bat to them,” said former U.S. Treasury Secretary Timothy Geithner, referring to the attitude of European leaders towards debt-laden Greece in February of 2010, three months before the country’s first bailout. Mr. Geithner, Treasury Secretary from 2009 until 2013, was attending a meeting of the finance ministers and central bankers of the Group of Seven (G7) nations: the United States, Japan, Germany, France, Britain, Italy and Canada.
It was the first occasion he had to meet Germany’s new Finance Minister, Wolfgang Schauble, presenting an opportunity to pressure the Europeans to end the crisis. The Europeans, specifically Germany and the European Central Bank (ECB), always had the ability to end the crisis. Putting up enough money in a regional bailout fund or allowing the ECB to fund governments (acting as a ‘lender of last resort’) would provide enough reassurance to the markets that no country would go bankrupt and therefore the crisis would end. It was referred to as the ‘big bazooka’ option, but Mr. Geithner had no such luck in convincing the Europeans to act quickly, largely due to German resistance.
The Europeans arrived at the G7 meeting in the remote Arctic Canadian city of Iqaluit wanting “to teach the Greeks a lesson” and “crush them,” explained Mr. Geithner. The Treasury Secretary warned them, “You can put your foot on the neck of those guys if that’s what you want to do,” but they still had to take action to reassure markets that the crisis would not spread to other countries, or threaten the euro itself. “I thought it was just inconceivable to me they would let it get as bad as they ultimately did,” said Mr. Geithner.
As the United States and the rest of the world would learn, the European strategy for the debt crisis that began in Greece and spread across the eurozone would be dictated by Germany, “the undisputed dominant power in Europe.” More than five years later, the Americans are still pressuring the Europeans to resolve their debt crisis problems, but to little effect. The stakes are now even higher as the U.S. fears the possibility of losing Greece to Russia, a conflict in which Germany is increasingly involved.
The Americans would attempt to influence Europe’s crisis through extensive contact between Mr. Geithner and Mr. Schauble at the German Finance Ministry, Mario Draghi at the ECB, and Christine Lagarde at the International Monetary Fund (IMF). The Americans knew that for anything to get done in Europe, you needed the Germans and the central bankers on board. The U.S. spy agency, the NSA, was even wiretapping the phone calls of German Chancellor Angela Merkel, top officials of the Finance Ministry and the ECB, with a particular interest in economic issues and Greece.
Germany’s political strategy was to allow the debt crisis to spread, creating the pressure required to force eurozone nations to accept German demands of restructuring their economies in return for financial aid from the EU. The German magazine Der Spiegel described Frau Merkel’s overall European strategy: “the aim was to solve the debt crisis in a step-by-step fashion.”
“If the euro fails, then Europe fails,” said the Chancellor in May of 2010, shortly after the first Greek bailout program was agreed. “The euro is in danger. If we do not avert this danger, then the consequences for Europe are incalculable and then the consequences beyond Europe are incalculable.” Merkel worked closely with Mr. Schauble at the Finance Ministry and her Minister of Economics, Rainer Brüderle, to write a draft proposal outlining the changes Germany wanted in the European Union.
The German publication Der Spiegel was leaked a copy of the draft, and concluded: “Berlin is serious about taking the lead as the euro zone struggles with a suddenly weak currency.” Germany wanted a Europe where the European Commission had the power to suspend the voting rights of nations for violating the eurozone’s debt and spending laws, including plans for managing the bankruptcy of a member nation. “Europe,” said Angela Merkel, “needs a new culture of stability.” But that culture would be enforced through the destabilizing power of financial market crises.
The German bet was that the EU could outrun financial markets, using the crisis as an opportunity to advance fiscal and political integration and impose their demands upon the rest of Europe, while simultaneously preventing markets from creating a crisis so severe that it threatened the euro or the economies of the more powerful nations. Without the pressure of financial markets, the EU could not force its member nations to restructure their economies and societies. Chancellor Merkel would frequently describe the European debt crisis to her colleagues as a “poker game” between financial markets and politicians. The first to flinch would lose.
In 2011, Bloomberg noted that Merkel was “turning Europe’s sovereign-debt crisis into an opportunity to reshape the euro region in Germany’s image,” concluding that she had “pulled ahead for now in her battle to restore policy makers’ mastery over the market.” A biographer of Merkel explained, “It’s policy by trial and error.”
Merkel’s powerful Finance Minister, Mr. Schauble, was one of the chief architects of the German strategy for Europe’s crisis. In March of 2010, he wrote in the Financial Times that, “from Germany’s perspective, European integration, monetary union and the euro are the only choice.” But aid comes with strings attached and harsh penalties for violations. “It must, on principle, still be possible for a state to go bankrupt,” wrote Mr. Schauble. “Facing an unpleasant reality could be the better option in certain conditions.”
The German minister believed “the financial crisis in the eurozone is not just a threat, but an opportunity,” as markets would “force the most debt-laden members of the 17-nation currency union to curb their budget deficits and increase their competitiveness.” This would pressure governments to accept further integration into a “fiscal union” defined and shaped by Germany. “We need to take big steps to get that done,” Mr. Schauble said in 2011. “That is why crises are also opportunities. We can get things done that we could not do without the crisis.”
Financial markets were happy to oblige the German-EU strategy, as the crisis would force the reforms long demanded by banks as a solution to the irresponsible spending of governments: austerity and structural reform. From 2002 to 2012, Josef Ackermann led Germany’s largest bank, Deutsche Bank. In 2011, the New York Times described Ackermann as “the most powerful banker in Europe” and “possibly the most dangerous one, too,” standing “at the center of more concentric circles of power than any other banker on the Continent.”
When the financial crisis struck in 2008, Angela Merkel and Josef Ackermann established a close working relationship, though not without its ups and downs. “We have a cordial and professional relationship,” said Mr. Ackermann in 2011. The banker would advise Frau Merkel on her strategy through the financial and debt crises, also working closely with Jean-Claude Trichet, then-president of the ECB. From his “seat at the nexus of money and politics,” Ackermann was “helping to shape Europe’s economic and financial future.”
After he left Deutsche Bank in 2012, Ackermann delivered a speech to the U.S.-based think tank, the Atlantic Council, where he outlined Germany’s overall strategy for Europe’s crisis. When asked why Germany simply didn’t say that it would do whatever it took to protect the euro and eurozone nations from bankruptcy (thus ending the financial crisis), Ackermann explained that it was largely due to a “political tactical consideration.” While such an option would surely end the market panic and save the euro, it would be unacceptable to the German public, let alone the German parliament.
But another major problem, noted Mr. Ackermann, was that if Germany made such an announcement, other eurozone nations “would then say, well, why then go on with our austerity programs? Why go on with our reforms? We have what we need.” Thus, he said, “I think to keep the pressure up until the last minute is probably a – not a bad political solution.” However, “if it comes to the worst,” with the potential of a eurozone collapse, the banker had “no doubt” that Germany would come to the rescue.
If the eurozone collapsed, not only would an economic and financial contagion spread with drastic consequences for all its members and the world economy as a whole, but there was also a strong political element. “A fragmented Europe has no way for self-determination,” said Mr. Ackermann. “We will have to accept what the United States, China, India, Brazil and other countries will finally define for us.” But Germany was to define the future of Europe.
“My vision is political union,” said Chancellor Merkel in January of 2012. “Europe has to follow its own path. We need to get closer step by step, in all policy areas.” In the Chancellor’s Europe, Brussels (home of the European Commission) was to be given immense new powers over member nations. “In the course a long process,” she said, “we will transfer more powers to the Commission, which will then work as a European government.” Outlining the EU’s path to a federation of nations functioning like individual states within the U.S., Merkel said, “This could be the future shape of the European political union.” Further integration among eurozone nations was a major objective, she explained, “we need to give institutions more control rights and give them more teeth.”
As Chancellor Merkel and other German leaders would frequently remind the rest of Europe and the world, with 7% of the world population, 25% of global GDP and 50% of world social spending, Europe’s economic system was unsustainable and uncompetitive in a globalized economy. Germany’s vision for Europe was aimed at introducing “rules to force Europe’s economies to become more competitive.” But competitiveness was defined by Germany, and thus, “the rest of Europe needs to become more like Germany.”
Germany wanted Greece and the rest of Europe to impose ‘budgetary discipline’ through austerity measures: cutting public spending in order to reduce the debt. But these are painful and highly destructive policies that depress the economy, impoverish the population, destabilize the political system, undermine democracy and devastate the wider society. If you live in a country where the government funds healthcare, education, social services, welfare, pensions and anything that benefits the general population, under austerity measures, now you don’t! Not surprisingly, austerity is always unpopular with the people who are forced to live through it.
Only in times of crisis can austerity be pushed through. When financial markets threaten to cut a country off from its sources of funding, it must to turn to larger nations and international organizations for financial aid. “The current strategy of the EU,” wrote Wolfgang Münchau in a November 2009 article for the Financial Times, “is to raise the political pressure – perhaps even provoke a political crisis – with the strategic objective that the Greek government might eventually relent.” And the government would have to relent to the diktats of Germany and “the Troika”: the European Commission, European Central Bank (ECB), and the International Monetary Fund (IMF), who collectively managed Europe’s bailout programs.
In early 2010, European banks held more than 141 billion euros of Greek debt, with the largest share being held by French and German banks. The first bailout largely went to bailout these very banks. Karl Otto Pohl, the former President of the German Bundesbank noted back in 2010 that the Greek bailout was about “rescuing the banks and the rich Greeks,” especially German and French banks. As the Troika bailed out the banks, these institutions took on the Greek debt.
The second bailout organized by the Troika largely went to paying interest on Greek debt owed to the Troika. Thomas Mayer, a senior adviser to Deutsche Bank, said, “the troika is paying themselves.” Between May 2010 and May 2012, Greece had received roughly $177 billion in bailouts from the Troika. A total of two-thirds of that amount went to payoff bondholders (banks and rich Greeks), while the remaining third was left to finance government operations.
In 2015, a study by the Jubilee Debt Campaign noted that of the total 252 billion euros in bailouts for Greece over the previous five years, over 90% ultimately went “to bail out European financial institutions,” leaving less than 10% for anything else. At the time of the first bailout in 2010, Greece had a debt-to-GDP ratio of roughly 130%. As a result of the bailouts and austerity, the debt ratio has risen to 177% of GDP at the beginning of 2015. Thus, after more than five years of supposed efforts to reduce its debt, that debt has grown substantially.
But the banks are no longer the largest holders of Greek debt. Today, the Troika owns 78% of the 317 billion euro Greek debt. Greece now owes the IMF, ECB, and eurozone governments a total of 242.8 billion euros, with the largest single holder being Germany with more than 57 billion euros in Greek debt. And now the Troika wants to be paid back. “In short,” wrote Simon Wren-Lewis in the New Statesman, “it needs money from the Troika to repay the Troika.”
The effects on Greece of more than five years of living under the domination of Germany and the Troika have been palpable. Greece is a ruined economic colony of the European Union. Austerity in Greece led to the creation of “a new class of urban poor” with more than 20,000 people being made homeless over the course of 2011, and dozens of soup kitchens and charities opening up to attempt to address the growing social and human crisis.
As austerity continued to collapse the economy, unemployment and poverty soared. By 2013, more than 27% of Greeks were unemployed and 10% of school-age children were going hungry. Between 2008 and 2013, the Greek government cut 40% of its budget, healthcare costs soared, tens of thousands of doctors, nurses and other healthcare workers were fired, drug costs rose, as did drug use with HIV infections doubling and a malaria outbreak was reported for the first time since the 1970s, while suicide rates increased by 60%.
By early 2014, more than a million Greeks were left without access to healthcare, accompanied by rising infant mortality rates. A charity director in Athens noted that, “Alcoholism, drug abuse and psychiatric problems are on the rise and more and more children are being abandoned on the streets.” By 2015, roughly 40% of children in Greece lived under the poverty line while the richest Greeks, responsible for roughly 80% of the tax debt owed to the government, were hiding tens of billions of euros in offshore accounts.
Unemployment has grown to 26% (and over 50% for youth), wages dropped by 33%, pensions were cut by 45%, and 40% of retired Greeks now live below the poverty line. Just prior to the Greek elections that brought his party to power in January of 2015, Alexis Tsipras wrote in the Financial Times that, “This is a humanitarian crisis.” Joseph Stiglitz, the Nobel Prize-winning former chief economist of the World Bank, wrote in late June of 2015 that, “I can think of no depression, ever, that has been so deliberate and had such catastrophic consequences.”
Thus, the German-Troika strategy of prolonging the debt crisis to reshape Europe has resulted in a human, social and political crisis that threatens the future of democracy in Europe itself. Germany has, in effect, established an economic empire over Europe, largely operating through the Troika institutions, all of which are unaccountable technocratic tyrannies.
The first pillar of the Troika is the International Monetary Fund (IMF), based in Washington, D.C., just a few short blocks down the road from the White House and U.S. Treasury Department. The United States is the largest single shareholder in the IMF, and the only one of its 188 member nations with veto power over major Fund decisions. The Financial Times referred to the IMF as “a tool of US global financial power.”
In 1977, U.S. Treasury Secretary Michael Blumenthal described the IMF as “a kind of whipping boy” in a memo to President Carter. In return for a loan to a country in crisis, the Fund would demand harsh austerity measures and other ‘structural reforms’ designed to restructure the economy along the lines desired by Washington. “If we didn’t have the IMF,” wrote Blumenthal, “we would have to invent another institution to perform this function.”
In the early 1990s, the IMF was managing ‘programs’ in over 50 countries around the world, and was “long been demonized as an all-powerful, behind-the-scenes puppeteer for the third world,” noted the New York Times. 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.” Operating through the Troika, IMF Managing Director Christine Lagarde took a “tough love” approach to Greece, with the Fund being referred to as “the toughest” of the three institutions.
The European Central Bank (ECB) is another pillar of the Troika, run by unelected central bankers responsible for managing the monetary union, with its headquarters in Frankfurt, Germany, home to the German central bank (the Bundesbank) and Germany’s large financial sector. Throughout the crisis, Brussels has pushed to give the ECB more powers, specifically to oversee the formation and management of a single ‘banking union’ for the EU. The ECB has, in turn, advocated for more power to be given to Brussels.
The ECB played a central role in the debt crisis, pushing Greece into a deep crisis in late 2009, making “an example” of the country for the rest of Europe, blackmailing Ireland into accepting a Troika bailout program, then blackmailing Portugal into doing the same, and putting political pressure on Italy and Spain to implement austerity measures.
In late 2014, ECB President Mario Draghi rebooted efforts to advance integration of the economic and monetary union. When the anti-austerity Syriza government came to power in Greece in early 2015, the ECB was placed to be “the ultimate power broker” in negotiations between the country and its creditors. A member of the central bank’s executive board welcomed the democratic victory in Greece by warning, “Greece has to pay, those are the rules of the European game.”
The ECB took a hardline approach to dealing with Greece, increasing the pressure on Athens to reach a deal with its creditors, with The Economist referring to the central bank as “the enforcer.” This unelected and democratically unaccountable institution holds immense, undeniable power in Europe.
The European Commission is the third pillar of the Troika based in Brussels, functioning as the executive branch of the European Union overseeing a vast bureaucracy of unelected officials with responsibility for managing the union. Throughout the crisis, the Commission has been given sweeping new powers over economic and spending policies and priorities of member nations.
Brussels was to be given the centralized power to approve and reject national budgets of eurozone nations, establishing a technocrat-run ‘fiscal union’ to match the ECB’s role in managing the monetary union. EU institutions would have “more powers to serve like a finance ministry” for all the nations of the eurozone, potentially with its own finance minister, “who would have a veto against national budgets and would have to approve levels of new borrowing,” said Mr. Schauble, the German Finance Minister.
In 2007, European Commission President José Manuel Barroso mused aloud during a press conference. “Sometimes I like to compare the E.U. as a creation to the organisation of empires,” he said. “We have the dimension of Empire but there is a great difference. Empires were usually made with force with a centre imposing diktat, a will on the others. Now what we have is the first non-Imperial empire.” Eight years later, it is clear that the EU is officially an imperial empire, using bailouts not bombs, choosing the Troika over tanks, Brussels over bullets, austerity instead of armies, advocating for consolidation instead of colonization.
Philippe Legrain, a British political economist, author, and adviser to President Barroso from 2011 to 2013 wrote that the debt crisis “divided the euro zone into creditor nations and debtor ones,” and the EU’s institutions “have become instruments for creditors to impose their will on debtors, subordinating Europe’s southern ‘periphery’ to the northern ‘core’ in a quasi-colonial relationship. Berlin and Brussels now have a vested interest to entrench this system rather than cede power and admit to mistakes.”
“In general,” wrote Gideon Rachman in the Financial Times in 2007, “the [European] Union has progressed fastest when far-reaching deals have been agreed by technocrats and politicians – and then pushed through without direct reference to the voters. International governance tends to be effective,” he concluded, “only when it is anti-democratic.”
Perhaps the greatest lesson of the past five years of crisis is that in a Europe under the rule of Germany and the Troika, the people and democracy suffer most. For democracy to survive in Europe, the technocratic tyranny of the Troika and debt-based domination of Germany must be challenged. Democracy is too important to be sacrificed at the altar of austerity. It is any wonder why Greeks voted ‘no’ to the status quo?
Andrew Gavin Marshall is a freelance researcher and writer based in Montreal, Canada.
Please consider making a donation to help support my research and writing.
I have recently launched a Kickstarter campaign to try to raise money to support my efforts to finish the first book of what will likely be a series on ‘Power Politics and the Empire of Economics’.
What I am asking of my readers is not only to consider donating to the project, but more importantly, to share and promote it through social media, by sending it to others who you think may be interested, and to help get the word out in any way you can!
Every bit helps, and a great deal of help is needed if this is to be successful!
I have collected below links to the campaign, as well as a video I made to promote it, and links to the sample introduction chapter that I published online so that potential patrons could read the kind of material that they would be supporting.
About the Project:
This book will tell the stories of the rich and powerful oligarchs and family dynasties who collectively rule our world: the global Mafiocracy, operating behind-the-scenes playing their games of power politics, globalization’s Game of Thrones where rich and influential families play their games, balancing collusion and cooperation with fierce competition to rule the world Empire of Economics.
In 1975, Henry Kissinger told President Ford: “The trick in the world now is to use economics to build a world political structure.”
This book is that story.
A small network of banks and other financial institutions dominate the global economy, its wealth and resources. This small network of corporate power functions as a global financial Mafia, complete with excessive criminal behaviour in laundering drug money, funding terrorists, rigging interest rates and manipulating markets.
Name a nation, and there are rich dynasties that rule behind the scenes. The Rockefellers in the United States, the Rothschilds in France and Britain, the Agnelli family in Italy, the Wallenbergs in Sweden, the Tata family of India and Oppenheimers of South Africa, the Koc and Sabanci families of Turkey, the Gulf Arab monarchs and the rich industrial families of Germany with dark Nazi pasts.
Germany once again rules Europe, with the European Union’s institutions of unelected technocrats undertaking a process of internal colonization as they impose their economic empire upon Greece, Spain, Italy, Ireland, Portugal and Cyprus. Finance ministers and central bankers are the agents of empire, cooperating closely with bankers, oligarchs and dynasties to create a world which best serves their interests. The global financial Mafia mingles with political leaders at forums and secret meetings like the Bilderberg group, the Trilateral Commission and the World Economic Forum.
From the streets of Athens, to Egypt, Turkey, Brazil, Spain, China, South Africa, Chile, Canada, and in the streets of Ferguson and Baltimore, people are rising up against exploitation, repression and domination.
This book is not simply a collection of stories of the ruling Mafiocracy; it is designed to encourage strategy among popular and revolutionary movements capable of creating something altogether new. It is time to do away with a world ruled by oligarchs, and save the species from itself. But first, we must know our world better.
Help me to complete the first book in a series on ‘Power Politics and the Empire of Economics’. For four years I have been doing my own research, scouring the archives of the New York Times, Wall Street Journal, Financial Times, government documents, official reports and corporate strategies, studying the world of power and empire, translating the political language of ‘economics’ into plain and simple English.
I have been published in multiple news sources, online and in print, interviewed by radio and television networks, and now I am asking for your help to raise $10,000 so that I can finish the first book in this series, to expose the Empire for all to see, its strengths as well as the weaknesses left exposed for us to exploit. Let us bring true democracy and an end to Mafiocracy. Help me to write this book, and together, let’s help each other to end the Empire.
Donate today. Thank you.
Andrew Gavin Marshall
The Debtor’s War: A Modern Greek Tragedy
By: Andrew Gavin Marshall
Early on Thursday, 7 November 2013, Greek riot police stormed the offices of Greece’s main public broadcaster, which had been under a five-month occupation by workers who opposed the government’s decision to shutdown the broadcaster, firing thousands and destroying a major cultural institution. The broadcast seems to have come to an end.
The long and painful Greek tragedy continues, where society and culture are gutted, people impoverished, driven into a deep depression, with growing political and social conflicts, the rise of fascism, detention camps filled with immigrants from Africa and the Middle East, trying to escape the dictators we arm, or the wars we support, with suicide rates spiking, health and well-being deteriorate, services and support vanish, and all the people are left to be punished, humiliated, oppressed and destroyed… These are called “solutions” to an economic crisis, on the road to “economic recovery”… think about that for a moment.
Why is this done? Because some of the world’s largest banks demand it. The same banks that created the global financial crisis, and the European debt crisis, and the global food crisis (which drives tens of millions more people into hunger, and makes the banks richer in the process)., and which launder hundreds of billions of dollars in drug money, profit from arms sales, war and terror. Those banks want the people of Greece (and Spain, and Italy, Portugal, and Ireland, and everywhere, always, across the world) to pay the interest they feel they are owed.
Let me put this simply: a computer screen somewhere, at some big bank, says that some country owes that bank a certain amount of money, and thus, the people of that country must suffer and even die, so that the government can afford to pay back the bank. That’s what government’s are for, right? To serve banks… right?
Greece needs to pay the bank, because the bank and all the bank’s friends (what we call “financial markets”) have decided to punish the country of Greece by betting against the ability of the country to repay its debts, to crash its credit rating, making its ability to borrow and spend increasingly expensive and impossible. Now Greece is basically broke. Greece needs money, so it turns to the EU, the European Central Bank, and the IMF for “assistance.”
They demand that Greece – in return for the loan(s) – impoverish its population, cut all social services and health care, education, anything of benefit to the population – destroy it! – because it’s “too costly.” These are called “austerity measures.” Then, ensure that the newly-impoverished population has all their ‘benefits’ withdrawn, which were promised to them through the ‘social contract’ between the population and the government (essentially, a social agreement between people and the state which legitimizes the state’s ability to rule over them). These things must be destroyed. So things like pensions, social security, labour rights and regulations, protections and safety, industries, resources, services and anything that again benefits the population, must be dismantled and sold for cheap to foreign banks and corporations. All must be dismantled to ensure that the newly-impoverished population and country can be effectively and efficiently exploited by cosmopolitical corporations. These are called “structural reforms,” presumably because they ‘reform’ the very structure of society.
Then, with the combination of impoverishment and exploitation, comes the saintly glow of the all-encompassing human desire and civilizational drive – our goal and purpose as a species on this planet, what our societies are organized by and for – the highest stage of humanity: “economic growth.” Who wouldn’t want “growth”? Well, unless we’re talking about something like a wart, rash, infection, inflammation, or a tumour, everyone wants “growth”, right? Even if it’s at the expense of entire societies and populations of actual individual and living human beings, like any single one of us. Just so long as they suffer for “growth,” all will be well and happy.
So what does “growth” mean? It means that the banks and corporations – which worked with government agencies and officials in creating the global economic and financial crises in the first place – now have the ability to reap the benefits of destruction: massive profits, and growing global power. Large corporations have more money than most countries on earth. Their power is protected by the state, their influence unquestioned, their domination of the world’s resources, materials, culture and society is rapidly advancing, and they are – institutionally and ideologically – totalitarian. So what’s not to love, really?
They want it all. Profit and power. Our world is dominated and being re-shaped by a tiny global financial, corporate, political and intellectual elite. And all must suffer so that they can have what anyone in their position would want to have: more, they want it all. And they want you to just shut up and let them take it all. If you have a problem with that, well, that’s what riot police, prisons, and fascism are for.
This is why Greece must suffer. This is why we hear the unholy trinity economic mantra of: “austerity,” “structural reform,” and “economic growth.” The modern Greek Tragedy of ‘The Debtor’s War’ is driven by the tyrannical trio known as the ‘Troika’: the European Commission (of unelected, unaccountable supranational elite technocrats who serve the interests of global corporate and financial power), the European Central Bank (of unelected technocrats and economists who serve the interests of “financial markets” and the big banks), and the IMF (of unelected technocrats and economists who serve global financial and corporate interests). This institutional ‘Troika’ (the EC, ECB, and IMF) demanded the implementation of the ideological ‘Troika’: austerity, structural reform, and economic growth.
Together, institutionally and ideologically, they wreak havoc upon humanity.
Welcome to the most completely INSANE point in human history; the all-or-nothing. Welcome to reality.
Now please, kindly help change it.
Global Power Project: Connecting Josef Ackermann, the Institute of International Finance and the Euro Debt Crisis
Global Power Project: Connecting Josef Ackermann, the Institute of International Finance and the Euro Debt Crisis
By: Andrew Gavin Marshall
Originally posted at Occupy.com
In Part 1 of a Global Power Project exposé on the Institute of International Finance (IIF), I examined the founding the institute as a response by leading world banks to organize and manage their interests in relation to the 1980s debt crisis. When the European debt crisis hit headlines in 2010, the IIF was again on the scene and playing a major part. At the center was the CEO of Deutsche Bank, Josef Ackermann.
Josef Ackermann served as CEO of Deutsche Bank from 2002 to 2012, and over the same period served as Chairman of the IIF. Ackermann was also, and still remains, a member of the Steering Committee of the Bilderberg Group and continues to serve on the IIF’s Group of Trustees, a board which includes a number of prominent central bankers including Christian Noyer, the Governor of the Bank of France and Chairman of the Bank for International Settlements (BIS); Jamie Caruana, the General Manager of the BIS; and Jean-Claude Trichet, who was the president of the European Central Bank from 2003 to 2011.
During the early stages of the financial crisis, Ackermann served as an “unofficial adviser” to German Chancellor Angela Merkel and her then-Finance Minister Peer Steinbrueck. In December of 2009, Ackermann was speaking at a summit in Berlin attended by Chancellor Merkel and several other German cabinet ministers, corporate CEOs and others, where he explained that while the financial crisis had largely been “abated,” many “time bombs” remained — in particular, Greece, which he referred to as the “problem child” of Europe. Ackermann blamed the debt crisis on people having “lived beyond their means for years, if not decades,” warning that pensions and health care systems would “compound the problem” in the future.
The Financial Times has referred to Ackermann as a “reluctant power broker” who “has the ear of Angela Merkel, Europe’s most powerful politician.” Ackermann not only became one of the most influential bankers in the world, but a major political figure as well. As he himself explained: “Financial markets now are very political – political considerations have to play an important role.” In 2011, Ackermann warned that in terms of Europe’s crisis, “I don’t see a quick economic recovery, so we will have a longer time of somewhat lower growth – certainly three to five years.”
In October of 2011, Ackermann delivered a speech in which he said that Europe had “now entered a period of deleveraging” which “will inevitably entail a long period of austerity as governments, households and firms raise their savings.” At an economic forum in December of 2011, Josef Ackermann stated that Europe had to get its debt under control, “even at the cost of national sovereignty,” suggesting that neither “the pressure of financial markets” nor austerity measures “threaten democracy.” The real threat to democracy, according to Ackermann, was the “excessive debt” of European states.
In 2011, France and Germany agreed to negotiate directly with the “private sector” in the next planned Greek bailout agreement. The lead negotiator for the banks was the Institute of International Finance, which was brought in to discuss the potential for the banks to take a slight loss on their holdings of Greek debt. Ackermann was to be one of the lead negotiators for the IIF (also representing Deutsche Bank,a major private holder of Greek debt).
The Institute of International Finance under Ackermann’s chairmanship in turn became directly involved in major European summits, providing key input and suggestions that led to the Greek bailout. In July of 2011, the IIF warned the Eurozone countries that they would have to conclude a bailout agreement for Greece in order to avoid financial markets “spinning out of control.” The IIF delivered these warnings in a report delivered directly to European finance ministers, stating: “It is essential that euro area member states and the IMF act in the coming days to avoid market developments spinning out of control and risk contagion accelerating.”
The IIF undertook talks with Greek political leaders as well as EU officials, the European Central Bank and the IMF, with the organization noting that its managing director Charles Dallara and an IFF team “had extensive meetings with very senior European government officials over several weeks.” The three main IFF officials involved in discussions and negotiations were Charles Dallara (managing director from 1993-2013), Ackermann and Baudouin Prot, the Chairman of BNP Paribas.
According to one report, Ackermann even attended a meeting of the European Council during the EU summit to discuss the Greek bailout. Dallara was reported to have engaged in a conference call with top EU officials, including the Eurogroup chair Jean-Claude Juncker and the European Commissioner for Economic and Monetary Affairs, Olli Rehn. Dallara also reportedly met with European Council President Herman van Rompuy, then-French President Nicolas Sarkozy and Angela Merkel.
Discussions continued over the following months with little resolution. In an October meeting, EU officials reportedly hit a wall, at which point they summoned Dallara as the representative of the banks to the meeting in order “to break the deadlock.” Dallara met with Sarkozy and Merkel and other leading EU officials. While a general agreement was reached with the banks, negotiations over the technicalities continued into 2012, taking place between the Greek government, the EU, IMF and the IIF.
Ackermann explained that the banks were being “extremely generous” and then warned that failure to agree on a new program would open“a new Pandora’s box” for the debt crisis. Ackermann spoke at the World Economic Forum where he said that any agreement would have to force Greece to adhere to “harsh new austerity measures,” including cuts to wages and pensions, as well as making “the labor market more flexible.”
The final agreement had the banks holding Greek debt to take a 50% “loss” of their holdings of that debt, which would be done through a “bond swap” where they were to exchange their current junk status Greek debt for long-term Greek government bonds (debt) with a higher rating. In other words, the much-touted “write off,” or “loss,” for banks holding Greek debt amounted to a fancy financial method of kicking the can down the road.
After leaving his position as Chairman and CEO of Deutsche Bank as well as Chairman of the IIF, Ackermann spoke at the Atlantic Council, a U.S. think tank where he stated that elections in Greece were “not necessary” and “a big mistake.” What was necessary, he said, was “to make the funding of the banking system more certain,” and claimed it would require between 1 and 2 trillion euros. The European Stability Mechanism’s (ESM) ability to provide banks with $1 trillion was, according to Ackermann, “sufficient,” but he added, “we have to do more” and “we should maintain the pressure on the countries to do the necessary structural reforms and the necessary financial reforms to reduce the debt burden.” However, he noted, “if it comes to the worst,” in terms of a potential collapse of the Eurozone, “everything will be done to bail the Eurozone out.”
When Ackermann was asked why Germany did not simply come out and say that it would guarantee bank debts in the Eurozone, he explained that “it would be very difficult to get parliamentary approval for such behavior or attitude. People would not support it at all.” Further, if Germany did publicly state that it would guarantee bailouts for banks, many countries in the Eurozone would then ask, “Well, why then go on with our austerity programs? Why go on with our reforms? We have what we need.” Thus, Germany was not saying so publicly, based on what Ackermann called “political tactical consideration,” adding: “I think to keep the pressure up until the last minute is probably… not a bad political solution.”
Ackermann has never lacked as a source for controversy. He has been referred to as “a global banker and political power broker” by one financial analyst, and Simon Johnson, former Chief Economist at the IMF, referred to him as “one of the most dangerous bank managers” in the world whose advice not just to Germany and Greece but also to Belgium and Switzerland “shaped talks to bail out German lenders [banks], reduce Greece’s debt, leverage the euro-area’s rescue fund and influence regulation.” Ackermann himself stated, “Financial markets have become highly political over the past years… Politics and finance will become even more intertwined in the future. Accordingly, bankers have to think and act more politically as well.” One financial analyst stated: “He’s the most influential banker in the euro zone.” A German economics professor noted, “Deutsche Bank and its CEO are the target of all the people who feel our social or economic system is unfair or wrong.”
In 2011, Ackermann was targeted by an Italian anarchist group that claimed responsibility for sending a letter bomb to the Deutsche Bank CEO, though it was intercepted by police. When confronted by Occupy protesters during a speech he gave in November of 2011, Ackermann touted his “environmental” credentials, explaining that the UN Secretary General had referred to him as a “visionary.”
When Ackermann left Deutsche Bank and the IIF, he did not leave the world of financial and political power. He continued holding positions as a member of the Steering Committee of the Bilderberg Group; Vice Chairman of the Foundation Board of the World Economic Forum; and as a member of the Group of Trustees of the Principles for the Institute of International Finance. On top of that, he became a board member of Investor AB, Siemens AG, and Royal Dutch Shell, as well as being appointed Chairman of Zurich Insurance Group. Ackermann also sits on the international advisory boards of the China Banking Regulatory Commission, the National Bank of Kuwait, and Akbank, Turkey’s largest bank, as well as sitting on the boards of a number of other corporate and financial institutions.
When Ackermann left his position as CEO of Deutsche Bank and Chairman of the IIF, he was replaced at the IIF by Douglas Flint, the chairman of HSBC Holdings, who also sits on the board of the IIF. Flint is a member of the Mayor of Beijing’s International Business Leaders’ Advisory Council, a member of the Mayor of Shanghai’s International Business Leaders’ Advisory Council, a member of the International Advisory Board of the China Europe International Business School, a former director of BP (from 2005-2011), a participant in Bilderberg meetings (including for the years 2011-2013), a member of the European Financial Services Round Table (a group of CEOs and chairmen from Europe’s top banks), a member of the Financial Services Forum, a member of the European Banking Group (a group of over ten top European bank leaders formed to directly lobby the EU on “regulation” of the financial industry), and a member of the International Monetary Conference (IMC), an annual conference of private bankers formed to “compliment” the annual IMF meetings.
Whether through the leadership of Josef Ackermann, or now under the chairmanship of Douglas Flint, the IIF has been and will remain a major global player within the debt crisis and future financial crises, representing the organized interests of the financial markets. It’s no surprise, then, that even the Financial Times noted in 2010 that, three years after the financial crisis began, “the markets (and the bankers) still rule.”
Or as former Deputy Treasury Secretary Roger Altman noted, in 2011, that financial markets had become “a global supra-government” that “oust entrenched regimes… force austerity, banking bail-outs and other major policy changes,” whose “influence dwarfs multilateral institutions such as the International Monetary Fund” as “they have become the most powerful force on earth.”
We need look no further than the Institute of International Finance to see just how “the most powerful force on earth” is organized.
Andrew Gavin Marshall is a 26-year old researcher and writer based in Montreal, Canada. He is Project Manager of The People’s Book Project, chair of the Geopolitics Division of The Hampton Institute, research director for Occupy.com’s Global Power Project, and hosts a weekly podcast show with BoilingFrogsPost.