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Meet the “Emerging Market” Superstars of Global Economic Governance, Part I
By: Andrew Gavin Marshall
25 January 2016
One is Mexican, described by the Financial Times for his “Wall Street-sized reputation for financial wizardry”; the other is Indian hailed by India’s Economic Times as “the Poster Boy of Banking” whose “chiselled features are as sharp as his brain.” Meet Agustin Carstens and Raghuram Rajan. As the world’s economic elite gathers this week to meet in Davos, they are a perfect example of what has been called the “Davos class” – what Samuel Huntingdon described as a class who “see national governments as residues from the past whose only useful function is to facilitate the elite’s global operations.” U.S.-educated central bankers in two emerging market economies, their stories focused on their activities in one year, 2015, reveal how global power has both shifted and yet ultimately reinforced a global economic empire. Carstens entered the inner circle of financial elites, via his role as Mexico’s finance minister from 2006 to 2009, during which time he was responsible for managing the country’s response to the global financial crisis. In that capacity, Carstens turned to the IMF in April of 2009 for a $47 billion credit line to help Mexico weather the financial fallout from the crisis. During this time, he was appointed Chairman of the Joint Development Committee (JDC) of the World Bank, and after being appointed Governor of the Central Bank of Mexico in 2010, he became a member of the steering committee of the Financial Stability Board (FSB), set up to help coordinate response to the financial crisis, and was also appointed to the board of directors of the Bank for International Settlements (BIS) in Basel, Switzerland, which coordinates between 60 major central banks around the world. This impressive career resumé led to him being considered in 2011 as a contender for the top spot at the International Monetary Fund (IMF).
Raghuram Rajan’s rise to Governor of the Reserve Bank of India (RBI) followed a reverse trajectory to that of Carsten – not building his career first at a national level, but rather by gaining financial market legitimacy for his work at the IMF making himself a highly-sought after candidate within India’s elite circles. However, like Carstens, he started off in the U.S. education system, obtaining a PhD in economics from MIT in the United States in 1991, then became a professor at the University of Chicago before, in 2003, becoming the first non-Westerner and youngest person ever to fill the post of Chief Economist at the IMF, a position he held until 2007. His predictions in 2005 that “financial innovations” of the previous years and decades could make financial markets increasingly fragile, vulnerable and prone to crisis may have been questioned at the time, but after the global financial crisis hit in 2008 and proved Rajan correct, they led to him becoming well respected.
But this independence of thinking didn’t dim his belief in central tenets of neoliberalism, necessary to receive the support from financial markets to stand for office. In August of 2012, Rajan was appointed as the chief economic adviser to India’s finance ministry, praised by the Wall Street Journal as “a strong believer in liberalization and privatization,” who felt that India should continue with many of the market reforms it began implementing in the early 1990s. And the following August, in 2013, he was appointed to head the central bank by Indian Prime Minister Manmohan Singh. Immediately upon becoming Governor of the Reserve Bank of India, Rajan told the Financial Times that he planned to turn India into “a more continental and open economy” within a globalized world. Such a task is not easy, and comes with a great many risks. “I have to be careful,” he concluded.
Fostering a common vision in support of private financial capital
As central bankers in a globalized financial order, Carstens and Rajan have plenty of opportunities to meet up. They both sit on important committees of the Bank for International Settlements that meets every two months. Rajan is Vice Chairman of the BIS Board of Directors while Carstens is Chairman of BIS’s Economic Consultative Committee (ECC) and Chairman of the Global Economy Meeting (GEM). The latter has been described by its former chairman and President of the European Central Bank, Jean-Claude Trichet, “as the prime group for the governance of central bank cooperation.” The Spring and Annual Meetings of the World Bank and International Monetary Fund (IMF), taking place in April and September (or October), are also another regular stop in their calendars, especially for Carstens who has been appointed Chairman of the International Monetary and Financial Committee (IMFC), a secretive steering committee for the Fund. In addition, both Rajan and Carstens attend the private gatherings of the Group of 20 (G-20) nations that take place four times a year.
Beyond the world of inter-state financial cooperation, both Carstens and Rajan are frequent guests at meetings of private financiers – and thus all too easily pulled into the vision and interests of the private financial world – through gatherings of groupings such as the Institute of International Finance (IIF), the world’s largest and most important association of global financial institutions. IIF brings together the top executives of nearly 500 major banks, asset management firms, insurance companies, sovereign wealth funds, credit ratings agencies, hedge funds and other investment institutions.
During the IMF’s Spring Meeting in Washington in 2015, D.C., Carstens along with the Chinese Central Banker Zhou Xiaochuan, spoke at a forum on the subject of “International Capital Markets and Emerging Markets.” Carstens also sits as a member of an IIF exclusive advisory working group dedicated to supporting capital flows to emerging market countries, called the “Group of Trustees of the Principles,” sitting alongside other current and former central bankers, finance ministry officials and private bankers and financiers.
In 2013, shortly after his appointment as Governor of the RBI, Rajan spoke to an audience of the IIF outlining his objectives for reforming India’s economy over the coming years, which included further “liberalization” of India’s various financial and debt markets and to transform his own institution into a modern central bank with strict Western standards and credentials. Governor Rajan is also a member of the very exclusive Group of Thirty (G30), a private research and advocacy group of roughly 30 individuals, including current and former central bankers.
Among these meetings, the annual meeting in Davos in January, which Carstens attended in 2015, is a key forum to meet other elites outside financial circles including dozens of heads of state and hundreds of ministers and other high-ranking government officials, business and financial leaders, media and academic figures, and the chiefs of every major international organization.
Carsten and Rajan’s interactions and meetings at least ten times a year alongside other top financial diplomats help to foster shared experiences, understanding and objectives, encourage cooperation at the supranational level, and further align their ideological positions relative to one another. Similarly, their extensive interactions and affiliation with private financial market participants helps to create a community of shared interests between central bankers and financiers. Ultimately, these groupings and exchanges allow the central bankers to come face to face with their main constituents, for it is the interests of financial markets that central banks protect above all else, whether through the promotion of liberalization and other “structural reforms,” including austerity measures that are frequently demanded by markets.
Central banks also serve financial markets through the implementation of bailout programs designed to save banks and financial institutions when markets fail, as well as through the management of monetary policy with its primary objectives of achieving ‘price stability’ (low and stable inflation), which generally favours creditors at the expense of debtors. The prevailing orthodoxy of central bankers is closely aligned with the interests and objectives of private financial institutions, and Governors Carstens and Rajan are no exceptions.
Andrew Gavin Marshall is a freelance researcher and writer based in Toronto, Canada.
When the IMF Meets: Here’s What Happened At the Global Plutocracy’s Pow Wow in Peru
By: Andrew Gavin Marshall
26 October 2015
Originally posted at Occupy.com
On October 6, the finance ministers, central bankers and development ministers from 188 countries convened for the Annual Meeting of the World Bank and International Monetary Fund in Lima, Peru. The yearly gathering is one of the top scheduled events on the calendar of economic diplomats, bringing them together for private discussions, seminars and press conferences with journalists. And of course it’s a big deal for the thousands of private bankers and financiers who are there to cut deals with the chief financial policymakers in those 188 IMF-member nations.
It was ironic that this year’s meeting took place in Peru at a time when emerging market economies are experiencing increased economic problems: the result of a combined slow-down in economic growth in China, a collapse in commodity prices, and threats by the U.S. Federal Reserve to hike interest rates in the near future. Indeed, talk of China, interest rate hikes and emerging market crisis was plentiful in Peru. Central bankers, unsurprisingly, came out generally in favor of raising rates, with top monetary officials from emerging markets saying they more feared the uncertainty about when rates would rise than the rise itself, and urged the Fed to simply get on with it.
Global Pow Wow
The annual meetings bring together the Board of Governors of the IMF, made up of the central bankers or finance ministers from the Fund’s 188 member nations. But the Governors are given their marching orders from the 24-member International Monetary and Financial Committee (IMFC), made up of ministers and central bank governors from the 24 major constituencies represented on the IMF’s Executive Board, and whose membership largely reflects that of the Group of Twenty (G20).
The IMFC held their meeting in Lima on Oct. 9, presided over by the committee’s chairman, Agustin Carstens, the Governor of the Central Bank of Mexico, and the IMF Managing Director Christine Lagarde. In attendance were the finance ministers of Japan (Taro Aso), India (Arun Jaitley), Argentina (Axel Kicillof), Brazil (Joaquim Levy), France (Michel Sapin), Italy (Pier Carlo Padoan), Germany (Wolfgang Schauble), Singapore (Tharman Shanmugaratnam), Great Britain (George Osborne) and the United States (Jack Lew), along with top-level central bankers from Saudi Arabia, Nigeria, Norway, Algeria, Colombia, Belgium and China.
Also participating in the IMFC meeting were Mark Carney, Governor of the Bank of England and Chairman of the Financial Stability Board (FSB); Jaime Caruana, General Manager of the Bank for International Settlements (BIS); Valdis Dombrovskis, Vice President of the European Commission; Angel Gurria, Secretary-General of the Organization for Economic Cooperation and Development; Mario Draghi, President of the European Central Bank (ECB), and other top representatives from OPEC, the World Bank and the World Trade Organization (WTO).
These various financial diplomats met and made prepared statements, but the real work and decision-making took place in the IMFC’s off-the-record discussions. These discussions also included, as usual, a joint meeting between the IMFC and the G20, after which the G20 held a press conference discussing recent agreements made by the world’s top economic diplomats collectively representing roughly 85% of global GDP.
The meetings followed the consistent hierarchy of operations among the world’s most powerful economies, starting with a private gathering of the finance ministers and central bankers from the Group of Seven (G7) nations, including the U.S., Germany, Japan, UK, France, Italy and Canada. This was followed by a gathering of ministers and monetary chiefs from the G20 nations (consisting of the G7 plus China, Brazil, Russia, India, South Africa, Argentina, Australia, Turkey, Saudi Arabia, Mexico, South Korea, Indonesia and the European Union). The heads of the world’s major international organizations also attended these meetings, functioning effectively as a steering committee for the global economy. The G20 then held a joint session with the IMFC, which functions as the steering committee of the IMF.
The IMFC’s communiqué following its meeting warned that global economic growth was “modest and uneven” with increased “uncertainty and financial market volatility.” Risks to the global economy “have increased,” it noted, in particular for emerging markets.
Apart from the IMFC and G20, a number of other important meetings took place on the sidelines of the annual gathering, many of which prominently featured bankers. One of the most important gatherings of global financiers was the Annual Membership Meeting of the Institute of International Finance (IIF), a consortium of roughly 500 global financial institutions including banks, asset managers, insurance companies, sovereign wealth funds, hedge funds, central banks, credit ratings agencies and development banks.
From Oct. 9-10, the world’s top bankers and financiers then held luncheons and private meetings with the world’s top economic policy-makers, who were also invited to attend or speak at the conference proceedings. The IIF’s opening ceremony was addressed by Peru’s President Ollanta Humala Tasso, and included guest speakers like the finance minister of Indonesia and central bankers from Thailand and Malaysia, as well as the top Swedish central banker, Stefan Ingves, who serves as chairman of the Basel Committee on Banking Supervision (BCBS) which is responsible for shaping and implementing global banking regulations known as Basel III.
On the second day of the IIF’s meeting, guest speakers included top officials from Brazil’s finance ministry, the World Bank, and a keynote address was delivered by the governor of Canada’s central bank, Stephen S. Poloz. The rest of the day included talks by finance ministers and central bankers from Colombia, Chile and Peru; a top official from the central bank of France; and an official from the Financial Stability Board (FSB), which is a group of global central banks, finance ministries and regulators responsible for managing stability of financial markets.
Another important gathering in Lima was the Group of Thirty (G30), presided over by its Chairman Jean-Claude Trichet, the former President of the European Central Bank. The G30 was established in 1978 as a nonprofit group of roughly 30 sitting and former central bankers, finance ministers, economists and private bankers, with the aim “to deepen understanding of international economic and financial issues” and “to examine the choices available to market practitioners and policymakers.”
Among the G30’s current members are former Federal Reserve Chair Paul Volcker; Mark Carney of the Bank of England and Financial Stability Board; Jaime Caruana of the BIS; Mario Draghi of the ECB; William C. Dudley of the Federal Reserve Bank of New York; former U.S. Treasury Secretary Timothy Geithner; former Bank of England Governor Mervyn King; economist Paul Krugman; Bank of Japan Governor Haruhiko Kuroda; Bank of France Governor and BIS Chairman Christian Noyer; Reserve Bank of India Governor Raghuram Rajan; Tharman Shanmugaratnam of Singapore; former U.S. Treasury Secretary Lawrence Summers; Chinese central banker Zhou Xiaochuan; and top bankers from UBS, JPMorgan Chase, BlackRock and Goldman Sachs.
This year, the G30 held its annual International Banking Seminar in Peru, “an invitation-only, off-the-record forum that allows for frank discussion and debate of the thorniest issues confronting the central banking community,” bringing together “over fifty percent of the world’s central bank governors, the Chairmen and CEOs of the financial sector, and a select few academics to debate financial and systemic issues of global import.”
The meeting included a short speech by Federal Reserve Vice Chairman Stanley Fischer, who told the audience that the Fed’s interest rate rise was “an expectation, not a commitment.” Fischer acknowledged that “shifting expectations concerning U.S. interest rates could lead to more volatility in financial markets and the value of the dollar, intensifying spillovers to other economies, including emerging market economies.” He reassured his audience, however, that the Fed will “remain committed to communicating our intentions as clearly as possible… to assist market participants, be they in the private or the public sector, in understanding our intentions as they make their investment decisions.”
Behind Closed Doors
But the true importance of the annual IMF meetings is not what happens in formal proceedings and seminars, but the various secret meetings of finance ministers, central bankers and private financiers that take place on the sidelines of the official conference. In these closed-door events, a select group of government and monetary officials, primarily those from the G7 and G20 nations, were invited to wine and dine with bankers at decadent dinners and lavish parties, and speak to private gatherings of the world’s top investors and money managers. It’s here, in these various meetings, where the world’s chief financial diplomats were able to meet, greet and receive praise or criticism from their true constituents: the global financial elite.
As usual, the annual pow wow of the global plutocracy came and went with little comment outside the financial press. But as always, the annual IMF meetings – and the more secretive, simultaneous gatherings of global economic diplomats and financiers on the sidelines – represented the core of global economic governance, manifest in the various ad-hoc committees that in essence rule the world.
These individuals’ main interactions were not with the populations in their home nations – the people who suffer under austerity, who have to “adjust” to the restructuring of their societies into “market economies” – but rather with those from whom they have the most to gain: bankers, billionaires and financiers. And rest assured, when the officials retire from their central bank and finance ministry positions, they will be stepping out of their membership in the G7, G20 and IMFC, and into the boardrooms of JPMorgan Chase, Goldman Sachs, BlackRock, Barclays and Deutsche Bank. They will be well rewarded, with large salaries and bonuses for a job well done while in public office. And the revolving door of global economic governance will keep turning.
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
Global Power Project: Bilderberg and the Global Financial Mafia
By: Andrew Gavin Marshall
11 December 2014
Originally posted at Occupy.com
In the previous Bilderberg article, I wrote that financial markets were “a type of global parasite with unprecedented power capable of determining the fate of nations and peoples.” In truth, the “super-entity” known as financial market power functions like a cartel, or an organized criminal network: a Mafia. This installment examines some of the members of the global financial mafia who are present at Bilderberg meetings and thus are given unparalleled access to political leaders behind closed doors.
At Bilderberg meetings, participants frequently include leading officials and advisers to banks like JPMorgan Chase, Goldman Sachs, Barclays, Deutsche Bank, HSBC and AXA, among others. The participation of leaders and advisers to these and other large financial institutions provides world leaders with direct, “private” access to some of the leading voices at the core of global financial markets. The interests and actions of financial markets can thus be articulated to the leaders of powerful political, media, military, intelligence and technocratic institutions. The “invisible hand” may voice where and when it might smack.
Through Bilderberg, leaders in financial markets are given an inside look at, and access to, those who shape and wield foreign and economic policy in the world’s most powerful nations. Their interests become a part of that process, just as geopolitical interests are integrated into the actions of financial markets. While financial markets command no armies, they determine the flow and functions of money upon which all armies are dependent, and to which nations are obedient. Bilderberg brings these institutions and individuals together for an off-the-record, private chat about global affairs and policy.
Martin Feldstein, who serves on the International Council of JPMorgan Chase, attended all but one Bilderberg meeting between 2010 and 2014. Feldstein is one of the most influential American economists over the past several decades, serving as a professor at Harvard, a member of the Group of Thirty, the Trilateral Commission, the International Advisory Board of the National Bank of Kuwait, and the Council on Foreign Relations. He advised President George W. Bush as a member of the Foreign Intelligence Advisory Board between 2007 and 2009, a position in which he was given access to top-secret intelligence information. He had previously served as one of Ronald Reagan’s chief economic advisers, and President Obama appointed him in 2009 to serve on the Economic Recovery Advisory Board, advising on how to manage the “recovery” following the financial crisis.
Feldstein’s views are well known. Relating to Europe’s debt crisis, for which Bilderberg meetings hold a great deal of significance, Feldstein wrote in the Financial Times in July of 2013 that governments that bowed to “popular political pressure” to lessen the brutal austerity measures widely seen as the cause of mass unemployment, poverty and social unrest, were at risk of facing rising interest rates and “a new fiscal crisis.”
In other words, if governments bend to the will of the people, financial markets will seek to bend them back. A “fiscal crisis” only takes place when creditors (financial markets) decide to stop funding the government. In Europe, nations are largely dependent upon banks to provide them with credit to function. Thus, if the heads of financial markets don’t like the policies of nations, they can cut off their funding, creating a major crisis and even collapsing the government. This leverage forces nations to follow policies favored by financial markets, such as austerity and various other “structural reforms.” Meanwhile, the policies combine to impoverish the population, enrich the elite, allow for mass exploitation of resources and labor, and consolidate control of the economy into the hands of relatively few, large global banks and corporations.
Another key Bilderberg member and leading figure in financial markets is Josef Ackermann, whom I have written about previously. Ackermann has been one of Europe’s most powerful bankers over the past decade, as the CEO of Deutsche Bank and a major power player throughout the debt crisis holding key leadership positions in large industry associations such as the Institute for International Finance (IIF).
The current chairman of the Bilderberg Group, Henri de Castries, is chairman and CEO of the French insurance giant, AXA, one of the top companies on the Swiss study’s list of the “super-entity” of banks and insurance giants. De Castries is also a member of the European Financial Services Round Table (EFR), a lobby group made up of the chairmen and CEOs of Europe’s largest financial institutions.
In 2012, the Financial Times referred to Henri de Castries as one of France’s “best known captains of industry,” having served as an unofficial adviser to former French President Nicolas Sarkozy, and been school classmates with the current President Francois Hollande. De Castries is considered “as establishment as you can get in France.”
In the wake of the European debt crisis, Henri de Castries supported the policies of austerity and structural reform, warning in 2012 that the crisis would continue for some time. He suggested that governments needed to learn how to “spend less” and the only way to “win back our competitiveness” was “through business investment and not by public spending,” adding: “What we need is a profound cultural change.”
Marcus Agius, a member of Bilderberg’s steering committee, is the chairman of PA Consulting, having previously served as the chairman of Barclays, the bank listed in the number one spot on the list compiled by the Swiss study. As chair of Barclays between 2007 and 2012, Agius also served as chairman of the British Bankers Association, was a director of the BBC from 2006 to 2013, and served as a Business Ambassador of the Trade and Investment Ministry of the British government. Agius also married the daughter of Edmund de Rothschild, bringing him into the family of one of the most prestigious and influential financial dynasties in the world.
Agius resigned from Barclays in 2012 as a result of the massive global financial fraud revealed by the Libor rate scandal, whereby some of the world’s largest banks – including Barclays – formed a cartel at the British Bankers Association to manipulate the interest rate at which banks lend to each other, influencing prices throughout the global economy. Despite the resulting scandal for Agius and others, which forced resignations in 2012, he stayed on the bank’s payroll as an adviser until March of 2014, a full 20 months following his official resignation.
Douglas J. Flint, who is chairman of HSBC, has attended every Bilderberg meeting since 2011. He is also chairman of the Institute of International Finance (IIF), and is a member of the European Financial Services Round Table (EFR), the Financial Services Forum, the International Monetary Conference (IMC), and serves on advisory boards to the Mayors of Shanghai and Beijing.
W. Edmund Clark, the chair of one of Canada’s largest banks, TD Bank, has attended every Bilderberg meeting since 2010.
Peter Sutherland has been a long-time Bilderberg participant, and serves as the chairman of Goldman Sachs International.
Robert Zoellick, former World Bank president and Bilderberg participant at every meeting between 2010 and 2014, now serves as the chairman of the Board of International Advisers of Goldman Sachs.
Peter R. Orszag, a Vice Chairman at Citigroup, attended Bilderberg meetings between 2010 and 2012.
The Vice Chairman of Goldman Sachs, J. Michael Evans, attended Bilderberg meetings in 2012 and 2013.
This is but a small sampling of some of the names of the leaders of financial institutions represented at Bilderberg meetings over the past few years. Apart from leading individual banks and financial institutions, many of the financiers who attend Bilderberg meetings simultaneously hold leadership positions within other large banking lobby groups, industry associations, and major international conferences.
For example, Bilderberg members and participants frequently hold simultaneous leadership positions at the Institute of International Finance (IIF), the International Monetary Conference (IMC), and the Group of Thirty (G30), all of which have been the focus of previous installments of the Global Power Project, as they have been profoundly influential organizations in their own right. The fact that so many leading figures in those organizations are leaders and participants in Bilderberg meetings lends extra weight to the importance of the meetings.
Roger Altman, a Bilderberg steering committee member and head of a large investment bank, wrote in a May 2013 article in the Financial Times that financial markets in the 21st century were “much more powerful than any government leader,” noting that the spread of austerity across Europe was not driven by Angela Merkel of Germany or other political leaders, but rather, by “private lenders… who declined to finance further borrowing by those countries,” and thus, “markets triggered the Eurozone crisis, not politicians.”
The views and the desires of bankers and financiers are important – and influential – precisely because if these individuals don’t get what they want, they wield the power in numbers on screens that can force the hands of even the most powerful governments and politicians. As such, the favored policies of bankers frequently become the implemented policies of states.
Andrew Gavin Marshall is a freelance writer and researcher based in Montreal, Canada.
It’s Not Easy Being Young in This World: Help the “Lost Generation” Find its Way
17 March 2014
By: Andrew Gavin Marshall
It’s not easy being young in this world. And I live in Canada; what does that say? I am 26-years old, in debt, a university dropout – in “the only nation in the world where more than half its residents can proudly hang college degrees up on their walls” – according to a 2012 study by the OECD; a position Canada has held as the “most educated country” in the world since 2000. Yet, I am not among those who are officially deemed ‘educated’ and so my job prospects are glimmer, still.
In 2011, one of Canada’s leading newspapers – the Globe and Mail – reported that 78 million young people were without work around the world, “well above pre-recession levels.” The head of the International Labour Organization warned that the “world economy” was unable “to secure a future for all youth,” which “undermines families, social cohesion and the credibility of policies.” Noting that there was “already revolution in the air in some countries,” unemployment and poverty were “fuel for the fire.” The head of the International Monetary Fund (IMF) had previously warned that youth unemployment in poor nations was “a kind of time bomb.” It is the threat of a “lost generation” of youth that is radically altering the lives of youth – and everyone else – in the world today.
Beyond the Arab Spring uprisings of the Middle East – and the counterrevolutions, coups, civil and imperial wars that have accompanied them, seeking to co-opt, control or crush them – has been the massive unrest spreading across much of Europe, notably in south, central, and eastern Europe. This great unrest has accompanied the economic, financial, and debt crises which have gripped Europe in recent years, with countries imposing ruthless economic policies that impoverish the populations and make them ripe for exploitation by multinational corporations, while keeping them under the harsh boot of militarized police and increasingly authoritarian states, where fascism is once again on the rise.
But in Canada – the world’s most “polite” nation – where more than half of the population have degrees, roughly one in three university graduates (of 25 to 29 years old) “ends up in a low-skilled job,” low paid and part-time, while 60% of these graduates leave school with an average debt of $27,000. This, noted CBC’s Doc Zone, “is a ticking time bomb with serious consequences for everyone.” Young Canadians are “overeducated and underemployed.” We “are entering an economy in the throes of a seismic shift where globalization and technology are transforming the workplace.” An added challenge is that, “for the first time in history youth are facing… competition with their parents’ generation for the small pool of jobs that do exist.”
Canada’s youth have continued to be referred to as a “lost generation” whose future is of “people without jobs and jobs without people.” But this is not merely a Canadian phenomenon. The OECD – the Organisation for Economic Cooperation and Development, an economic think tank representing the world’s 34-or-so richest nations – noted that the threat of a “lost generation” was global. Canada’s youth unemployment rate was at around 15% – for 15-24 year-olds – while in Spain and Greece it had risen above 50%, as was reflected in the increasing social unrest.
Canadian youth are unemployed at a rate double the national jobless rate of 7.2%, the “biggest gap between youth and adult unemployment rates since 1977.” Youth are – due to lack of experience – twice as likely to be laid off as older, more experienced workers. A July 2013 report by one of Canada’s largest banks – CIBC – stated that there were 420,000 youth (15-24) who were “neither employed nor enrolled in school… basically on the sidelines doing nothing.”
The CIBC report more-or-less bluntly stated – that is, blunt for bankers – that: “The current environment of part-time work, temporary jobs, corporate and government restructuring and downsizing is especially tough on young people whose lack of experience and seniority make them much more vulnerable to labour market changes.” In other words, we’re fucked. As the bankers continued to explain, while youth may be enrolling in schools more, staying in schools for longer, degrees are “no longer enough.” Schools must more and more become “training grounds” for corporate employment. Education will also have to become more expensive, require more debt, and thus, become increasingly privatized and specialized, so as to ensure that fewer people gain access to it. Instead of going to school, the bank suggested, “Do whatever it takes to make you different.”
I thought it would be a cold day in Hell before I followed advice from a banker, but here I am (cold it may be), trying to do what makes me “different.” So what the hell do I do? This is a question that has plagued many of my friends, my family, and indeed, myself.
My general cookie-cutter answer to the question of ‘what it is I do’ sounds something like this: I research and write about ideas, institutions and individuals of power, and methods and movements of resistance. That is, at least, the most succinct way that I know how to explain it. But perhaps it is time to go into a little more detail about what I do, and what I have done thus far.
I started doing research and submitting my writing to various alternative news websites back when I was about 19-years-old, still a university student in Vancouver, studying Political Economy and History. After a year or so of submitting articles, I received a job offer from one of the sites I was submitting to – Global Research – and began working as a Research Associate. I eventually moved to Montreal to be closer to my work, and when I was 22, we published a book on the economic crisis that I co-edited with my boss and in which I contributed three of my own chapters, covering issues related to central banks, think tanks and global governance.
When I was 24, I decided to move on, in part to protect the autonomy of a book I had started working on, and in part due to personality differences (and clashes). While I valued my newfound freedom, I chose a risky path. I was left as a 24-year-old unemployed non-French-speaking Anglophone in the French-speaking province of Quebec. My options were limited. At the time, it seemed that it came down to working at a call center, as a dishwasher, or going on welfare. Instead, I chose to try to chart my own way, to try to find a way to make money and survive doing what I love, and what I had developed skills for: research and writing. It was at this time that I decided to re-imagine my plan for writing my book, and I launched The People’s Book Project in the fall of 2011.
The objective was – as it remains – to crowd-fund my efforts to research and write one – and what later became a series of books undertaking an institutional analysis of power structures, to dissect and expose the ideologies, institutions and individuals that wield enormous power over the world.
From the time that I began The People’s Book Project until today, it has been a whirlwind of challenges, opportunities and growth. There were several people who, from the early days of the Project, contributed financial resources to allow me to continue with my work. It is never easy trying to live off of the kindness of strangers, from donations sent from around the globe. It’s not exactly a stable source of finances, and while one month may seem to be worry-free, the next month I could be broke. My family also stepped in to help me along my way, often subsidizing my efforts to a large degree as well. Thanks to my family, friends and strangers from around the world who have donated, The People’s Book Project is still continuing to this day, with thousands of pages of written research, rough drafts of chapters, and various edits compiled. One book became many, and with the growth of research, the analysis and understanding changes with time.
But circumstances also had a way of changing my focus. In early 2012, I decided to return to university, this time in Montreal. I enrolled and only signed up for one class (History of Haiti), since I wanted to continue devoting most of my time to my work. Within a month or so of returning to school, students from across the province of Quebec went on strike against the government’s plan to dramatically increase tuition costs (and in effect, to double the debt load most students would have to take on).
Suddenly, so much of what I had been writing about was happening right outside my window, on the streets, at my school, in the city where I lived. Hundreds of thousands of students protested, riot cops called into my school, charged by riot police for peacefully assembling, thousands of students were arrested, as police shot protesters with rubber bullets, tear-gas, ran them over with cars, vans and horses, until the government itself declared protests themselves to be illegal. The whole city rose up in response, and it was perhaps the most inspiring thing I have ever been personally witness to.
At that time, I chose to contribute to the student movement in the only way I knew how: to research and write. I was reading the English-language coverage of the student movement from within Quebec and across the rest of the country. What I was reading was about how “spoiled little brats” in Canada’s most “entitled” province were complaining and rioting about our government raising tuition when the rest of Canada had higher tuition (and debt to go with it). What I was reading was a world away from what I was seeing, hearing and experiencing. I decided that I would write about that story.
Very quickly, my writing was being picked up by multiple news sites like never before, as people hungry for more than the usual banality of the Canadian media were taking in new perspectives and seeking new sources of information. My article – “Ten Points Everyone Should Know About the Quebec Student Movement” – surprised me by going viral (by my standards), especially when it was picked up by CounterPunch and the Media Co-op, and thereafter I was consumed with writing about developments during the strike, as well as giving interviews with radio and even television stations. I was being quoted by a CBC blog, as well as in mainstream newspapers in British Columbia and Manitoba. Everything had been moving so quickly, and after months of working and writing about the student uprising, as it began to wind down, so did I. Ultimately, I had a bit of a ‘crash’ from over-exhaustion, but was soon back to writing.
In terms of the evolution of The People’s Book Project, the Quebec student movement was evidence to me that I could not simply focus on studying and writing about the institutions and ideologies of repression and domination, but that I had to place an equal focus on movements and methods of resistance, understanding that one cannot exist without the other, and that together, they provided a more coherent view of reality, this began to place increased focus on the issue of resistance being included within my research for the Book Project. After all, it is through resistance, rebellion, revolt, and creativity that we are able to find hope in this world and the situation we find ourselves in. It would simply not be enough to provide an examination of the structures that dominate our world without allowing for some hope to be understood and seen in those forces that resist these institutions and circumstances.
From here, my work on the Book Project began to rapidly expand. I turned my focus to Europe, and specifically the European debt crisis, examining the causes and consequences of the debt crisis, as well as the mass unrest, protests and social movements that have emerged as a result. In the span of a few months, I compiled over 350 pages of writing and research on the European debt crisis to contribute to the Book Project, samples of which I have since published online, notably on the debt crisis in Italy, focusing on the issue of austerity, and have also written on the uses of ‘political language’ throughout the debt crisis and all economic crises as a means of obscuring reality and, as Orwell wrote, “making lies sound truthful, murder respectable, and to give a feeling of solidity to pure wind.”
Studying the debt crises in Europe pushed me to try to better understand the uses and abuses of language by power structures and ideologies, and notably, in the fields of economics and finance, where the language appears very technical and specialized, to the point where it seems incapable of being understood by anyone without a degree in those fields.
By this time, I had also decided to drop out of school. I wanted to focus exclusively on my work, and school had seemed to become more a hindrance than a help. So, for the time being, I have given up on any goals regarding degrees and diplomas, instead, I have chosen to let my work speak for itself as opposed to getting any officially-recognized ‘credentials’.
I have, however, learned a great deal from the years I spent in school, namely, on an evolving quality of research. I don’t really look (or like looking) back at things I have previously written and published, especially those from several years ago. I rarely agree with any views I then-held, I find my quality of research seriously lacking, my analysis halfway incoherent, and my own understanding to be rather superficial. I am sure I will view my current work in a similar way several years from now, but I feel that this is a good thing. It is a sign that I am continually evolving in understanding and approach, and that I have still have a great deal to learn. This has been both a strength and a weakness for my Book Project. It has been a strength in the sense that the quality of research and analysis for the book increases over time, but a weakness in the sense that it extends the time that it takes to do the research and writing. The trade-off, I hope, is a worthy one. At least, I feel that it is. For readers, they may decide in due time.
For the past two years I have also been doing almost-weekly podcast episodes for BoilingFrogsPost, founded by Sibel Edmonds. The format has been wonderful, as I have been given an incredible amount of freedom to discuss whatever issues I want for whatever length of time I want, and it has connected me with a host of researchers, writers, activists and others from across the spectrum.
The past year has also been an especially busy one. I began getting offers to do an occasional commissioned article for various websites. This, again, has been both a strength and weakness for the Book Project. While it has helped in terms of being paid work (a rarity for any writer, it seems), as well as allowing my to work on subjects which are related to those of the Book Project, it has often torn me away from working specifically on the book, as most of my time had to be turned into writing articles for other sites, as well as working on several other projects which I took on.
My writing has been increasingly picked up by TruthOut and AlterNet, writing about the major think tanks that have been used to advance corporate and elite interests around the world, massive unrest in Indonesia, the world’s largest ‘free-trade’ agreement between the EU and US, and the development of the modern propaganda system, as well continuing to write about banks and “financial markets” (and their relationship to drug money laundering). Indeed, some of these articles have resulted in me being contacted by a big bank or two inquiring as to my sources for mentioning their name in relation to laundering drug money (which I promptly provided!).
I have also been working on an ongoing project for Occupy.com, called the Global Power Project, which focuses around institutional analysis of individual organizations, examining their history and evolution, as well as compiling the CVs of all the individuals who lead the organizations in order to chart a network of influence wielded by these various groups. My focus for this series has been primarily on studying banks and financial organizations. I have done a series of exposés on JPMorgan Chase, Goldman Sachs, Bank of America, Citigroup, Wells Fargo, and Morgan Stanley. I have also examined various organizations which bring together large groups of bankers with finance ministers and central bankers, such as the Institute of International Finance – the world’s largest banking lobby group – and the Group of Thirty, which resulted in me being contacted by the executive director of the G30 expressing his disappointment that I did not contact him or the group’s members for comment in my article series.
I have also authored an essay in cooperation with Occupy.com and the Transnational Institute for the TNI’s yearly ‘State of Power’ report, where I focused on analyzing the European Round Table of Industrialists – a group of Europe’s top CEOs – in shaping the evolution of the European Union. I have also been published in an academic journal published by the Spanda Foundation, where I contributed an article on environmental degradation and indigenous resistance to the social order. On top of all this, I also recently began another ongoing series for Occupy.com, the World of Resistance [WoR] Report, discussing issues related to the spread of global protests, uprisings, rebellions and revolutions.
One of my previous articles on the Trans-Pacific Partnership was also cited in Project Censored’s “Most Censored Stories” for their 2014 edition. I have also appeared on CBC Radio’s The Current to discuss evolving events in Tunisia’s revolution, as well as having had an op-ed published in a mainstream newspaper in British Columbia, The Province, where I countered an argument put forward by a regular columnist for the newspaper chain, discussing indigenous issues in Canada, a topic I have also discussed on APTN (Aboriginal Peoples Television Network).
I am also the chair of the Geopolitics Division of The Hampton Institute, a new U.S.-based “working class” think tank where I focus on discussing foreign policy and empire. I have written pieces for the Hampton Institute discussing the use of political language in modern imperialism, President Obama’s global drone terror campaign, the “secret wars” that America is waging in over one hundred countries around the world, U.S. support for death squads, the history of U.S. support for Arab dictatorships, notably in Egypt, where the struggle continues today, and I also wrote a large report on the American institutions and “intellectuals” that promote global empire.
So why did I go through a list of the various things I have written and am working on? Well, the answer is simple: I am asking for a ‘public subsidy’ for my writing and research, by you – the public – and so it seemed necessary to let you know a little bit more about where I’m coming from, what I’m doing, and what I’ve done, so that you can determine for yourself if my work is worth continued support.
My aim is to raise enough funds so that I can put aside a good deal of time from my various other time-consuming projects so that I can focus exclusively on the book and get the first edition done as soon as possible. But this requires actual funds, and I am far from having anything close to the amount necessary to dedicate meaningful time to this project. I hate asking for money, but I have come to terms with being an intellectual prostitute for the time being. However, I would rather prostitute my mind for the benefit of the wider public – and most especially the youth of the current “lost generation” to which I belong – as opposed to whoring my mind and efforts out to some various institution. At this point, however, I am essentially unemployable in almost every field, and so my options are rather limited. But I think that through my work, I can help others see that as a species, we do have other options, but that requires us to come to a common understanding, and to engage in common action. We cannot change the world, or steer humanity off the course of seemingly-inevitable extinction, alone. We need each other.
The People’s Book Project is the primary means through which I think I can contribute to this endeavor, to help give the “lost generation” a little bit of guidance. But just like the larger work and efforts that this world will require (and notably, require of the “lost generation”), I cannot do this alone. I require the support of readers and others. So please consider making a contribution to The People’s Book Project, and help the “lost generation” try to find its way.
Andrew Gavin Marshall
Central Banks, Financial Markets, Oligarchs and Family Dynasties
By: Andrew Gavin Marshall
10 March 2014
As part of The People’s Book Project, I have been heavily researching a number of different and interrelated subjects over long periods of time, collecting and cataloguing information, quotes, citations and analysis from a wide range of sources. My specific focus in the last several months have been on studying financial markets, the central banking-monetary system, and the role of financial and corporate family dynasties as institutional power structures within the wider global political economy. The objective of this research is to gather as much relevant information as possible related to these subjects so that I can begin the process of putting the information together, forming a larger, more expansive view of the global economic order while also bringing to light more of the little details, and roles of specific institutions and individuals. Trying to be both specific and expansive is quite challenge, but I’m up to the task.
This research initiative has led me to go through literally hundreds of speeches by central bankers, dozens upon dozens of academic journal articles, and hundreds of articles from the financial press. Through these efforts I am working to construct a more comprehensive institutional analysis of the global economic order than I have yet to come across.
Most people have little sympathy for banks in the wake of the global financial crisis, knowing that they have played a monumental role in causing the crisis, and then receiving extensive bailouts thereafter. My research aims to not simply explain what their role was in both causing and profiting from the crisis, but to explain what their function is within the wider global political economy. This includes examining the role of bond and equity markets, and thus, the global debt system. How do banks organize their interests institutionally and ideologically? What other institutions are involved? What are the role of hedge funds, private banks, consulting firms, exchange-traded funds and investment firms? Who runs these organizations, and who are they connected to?
My ongoing research and writing for Occupy.com’s Global Power Project has contributed a great deal to these efforts, providing institutional analyses of individual banks as well as highly influential groups such as the Institute of International Finance, the Group of Thirty, the International Monetary Conference, and many others. These groups bring together private bankers with central bankers and finance ministers. This adds further questions, seeking answers: What are the role of central banks in money creation, inflation, deflation, interest rates, and in social engineering? What are the ideologies and individuals that drive these organizations?
Another institution of importance that I have been studying is that of the ‘family dynasty’, namely, the prominent financial and corporate dynasties built up around famous names like Rockefeller, Rothschild, Agnelli, Wallenberg, Desmarais, and many others. How have they evolved as dynasties, how do they function, how do they rise and fall? How do family dynasties influence ideology, institutions, individuals and policy? How do they compete and cooperate with each other?
This is not a ‘conspiratorial’ analysis: I do not believe that one or two families “run the world,” nor that elites hold omnipotent power. Power is, ultimately, illusory: it is there because large groups of people believe it to be there, built around mythology and fantasy, but with real-world consequences. Instead, I want to understand and articulate the complexities of the power structures in our world, and notably, those that make up the global economic and financial order. If cash is King, I want to shine light on the royal court of the House of Hubris so that the mythology and fantasies surrounding our global order are better understood, and thus, better undermined.
To undertake this task, however, I need your support. In the past week, the People’s Book Project has raised $495 – bringing the total to $585 – in an effort to raise $2500 by March 25, so that I am able to continue doing research and to write the first volume of The People’s Book Project, focusing primarily upon this subject matter. Please help spread the word, donate, share through social media, promote and help in whatever ways you can. I cannot do this without you and your support, so please consider donating some time or money to help the People’s Book Project continue.
Andrew Gavin Marshall