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Power Politics and the Empire of Economics: An Introduction

Power Politics and the Empire of Economics: An Introduction

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By: Andrew Gavin Marshall

27 May 2015

The following is a sample chapter from an upcoming book.

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

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

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

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

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

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

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

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

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

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

Power Politics and Empire

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

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

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

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

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

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

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

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

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

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

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

The State of Empire

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

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

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

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

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

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

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

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

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

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

A Family Affair

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Machiavelli to the Mafiocracy

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

China: Globalization’s Gangster State

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The Language of Empire

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

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

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

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

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

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

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

Diplomacy and Design of the “World Political Structure”

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Europe Under Empire

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The Age of Rage

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

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

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

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

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

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

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

An Empire Under Threat

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Notes

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

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

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

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

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

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

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

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

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University City, Federal District, Mexico, 21 September 2009:

http://www.chomsky.info/talks/20090921(1).htm

[94] Liaquat Ahamed, Money and Tough Love: On Tour With the IMF (Visual Editions, 2014), pages 48-49.

[95] Press Releases, G10 Publications, Bank for International Settlements:

http://www.bis.org/list/g10publications/index.htm

[96] Editorial Note, Foreign Relations of the United States, 1969-1976, Vol. III, Foreign Economic Policy; International Monetary Policy, 1969-1972, Document 237:

https://history.state.gov/historicaldocuments/frus1969-76v03/d237

[97] Ruben Lamdany and Leonardo Martinez-Diaz, Studies of IMF Governance: A Compendium, Independent Evaluation Office Reports, (IMF, 2009), page 40.

[98] Factsheet, “A Guide to Committees, Groups, and Clubs,” IMF, 27 March 2015:

http://www.imf.org/external/np/exr/facts/groups.htm

[99] James M. Boughton and Colin I. Bradford, Jr., “Global Governance: New Players, New Rules,” Finance & Development (Vol. 44, No. 4, December 2007): http://www.imf.org/external/pubs/ft/fandd/2007/12/boughton.htm

[100] Memorandum From Secretary of the Treasury Simon to President Ford, 18 January 1975: Foreign Relations of the United States, 1973-1976, Vol. XXXI, Foreign Economic Policy, Document 83:

http://history.state.gov/historicaldocuments/frus1969-76v31/d83#fnref4

[101] Memorandum of Conversation, 26 May 1975: Foreign Relations of the United States, 1973-1976, Vol. XXXI, Foreign Economic Policy, Document 294:
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[102] “France Said to Bar Canada in Parley,” New York Times, 1 November 1975.

[103] Memorandum From Secretary of the Treasury Blumenthal to President Carter, 22 September 1977. Foreign Relations of the United States, 1977-1980, Vol. III, Foreign Economic Policy, Document 56:

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[104] Steven Greenhouse, “Point Man for the Rescue of the Century,” New York Times, 26 April 1992:

http://www.nytimes.com/1992/04/26/business/point-man-for-the-rescue-of-the-century.html?pagewanted=all

[105] James Morgan, Lead Article, Weekend FT, Financial Times, 25 April 1992.

[106] John Ibbitson and Tara Perkins, “How Canada made the G20 happen,” The Globe & Mail, 18 June 2010:

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[107] John Ibbitson and Tara Perkins, “How Canada made the G20 happen,” The Globe & Mail, 18 June 2010:

http://www.theglobeandmail.com/news/world/how-canada-made-the-g20-happen/article4322767/?page=all

[108] Lesley Wroughton, “SNAP ANALYSIS: New world economic order takes shape at G20,” Reuters, 25 September 2009:

http://www.reuters.com/article/2009/09/25/us-g20-imf-snapanalysis-sb-idUSTRE58O1FB20090925

[109] Larry Elliott, “G7 elite group makes way for G20 and emerging nations,” The Guardian, 4 October 2009:

http://www.theguardian.com/business/2009/oct/04/g7-g20-economic-policy

[110] Lesley Wroughton, “Currency tensions require private talks -IMFC chair,” Reuters, 9 October 2010:

http://www.reuters.com/article/2010/10/09/us-imf-currencies-boutros-idUSTRE6974J220101009

[111] Marcus Walker and Charles Forelle, “In Euro’s Hour of Need, Aide Gets ‘Madame Non’ to Say Yes,” Wall Street Journal, 14 April 2011:

http://www.wsj.com/articles/SB10001424052748704529204576257143299821036

[112] Valentina Pop, “Eurogroup chief: ‘I’m for secret, dark debates’,” EUObserver, 21 April 2011:

https://euobserver.com/economic/32222

[113] Leigh Phillips, “Attacks mount against ‘master of lies’ Juncker,” EUObserver, 10 May 2011:

https://euobserver.com/economic/32294

[114] Brian Blackstone, “Italian Gains Support in Central Bank Race,” Wall Street Journal, 20 April 2011:

http://www.wsj.com/articles/SB10001424052748704740204576273011324066764

[115] Ralph Atkins, “Messy ECB selection process might just work,” Financial Times, 10 February 2011:

http://www.ft.com/intl/cms/s/0/f7e255ae-3546-11e0-aa6c-00144feabdc0.html#axzz3R90ABvgZ

[116] Quentin Peel, “Merkel backs Draghi to head ECB,” Financial Times, 11 May 2011:

http://www.ft.com/intl/cms/s/0/5c56435e-7bbc-11e0-9298-00144feabdc0.html#axzz3R90ABvgZ

[117] Giles Tremlett, “Portugal denies reports that it is under pressure to seek EU aid,” The Guardian, 9 January 2011:

http://www.theguardian.com/business/2011/jan/09/portugal-eu-imf-aid

[118] Tony Barber, “Europe: Four steps to fiscal union,” Financial Times, 11 August 2011:

http://www.ft.com/intl/cms/s/0/9be75804-c3f7-11e0-b302-00144feabdc0.html#axzz3R90ABvgZ

[119] Michael Lewis, “It’s the Economy, Dummkopf!” Vanity Fair, September 2011:

http://www.vanityfair.com/news/2011/09/europe-201109

[120] Paul Taylor, “Insight: Euro has new politburo but no solution yet,” Reuters, 6 November 2011:

http://www.reuters.com/article/2011/11/06/us-eurozone-leadership-idUSTRE7A513B20111106

[121] Paul Taylor, “Insight: Euro has new politburo but no solution yet,” Reuters, 6 November 2011:

http://www.reuters.com/article/2011/11/06/us-eurozone-leadership-idUSTRE7A513B20111106

[122] Peter Spiegel, “How the euro was saved,” Financial Times, 11 May 2014:

http://www.ft.com/intl/cms/s/0/f6f4d6b4-ca2e-11e3-ac05-00144feabdc0.html?siteedition=uk#axzz34I6iWrke

[123] Peter Spiegel, “How the euro was saved,” Financial Times, 11 May 2014:

http://www.ft.com/intl/cms/s/0/f6f4d6b4-ca2e-11e3-ac05-00144feabdc0.html?siteedition=uk#axzz34I6iWrke

[124] Peter Spiegel, “How the euro was saved,” Financial Times, 11 May 2014:

http://www.ft.com/intl/cms/s/0/f6f4d6b4-ca2e-11e3-ac05-00144feabdc0.html?siteedition=uk#axzz34I6iWrke

[125] Andrew Crockett, “Commentary: How Should Financial Market Regulators Respond to the New Challenges of Global Economic Integration?” Speech delivered at the Federal Reserve Bank of Kansas Economic Symposium Conference, ‘Global Economic Integration: Opportunities and Challenges,’ Jackson Hole, Wyoming, August 24-26, 2000.

[126] Alan Greenspan, “Opening Remarks – Global Economic Integration: Opportunities and Challenges,” Speech delivered at the Federal Reserve Bank of Kansas Economic Symposium Conference, ‘Global Economic Integration: Opportunities and Challenges,’ Jackson Hole, Wyoming, August 24-26, 2000.

[127] Paul Taylor, “Insight: Euro has new politburo but no solution yet,” Reuters, 6 November 2011:

http://www.reuters.com/article/2011/11/06/us-eurozone-leadership-idUSTRE7A513B20111106

[128] MARCUS WALKER, CHARLES FORELLE, and STACY MEICHTRY, “Deepening Crisis Over Euro Pits Leader Against Leader,” The Wall Street Journal, 30 December 2011:

http://online.wsj.com/article/SB10001424052970203391104577124480046463576.html

[129] Rachel Donadino, “With Clock Ticking, an Economist Accepts a Mandate to Rescue Italy,” The New York Times, 13 November 2011:

http://www.nytimes.com/2011/11/14/world/europe/mario-monti-asked-to-form-a-new-government-in-italy.html

[130] Jennifer Clark, “Special Report: At Italy’s Fiat, young scion steers tough course,” Reuters, 9 November 2012:

http://www.reuters.com/article/2012/11/09/us-fiat-elkann-idUSBRE8A80BB20121109

[131] Guy Dinmore, “Time slips by for Monti’s reform,” Financial Times, 29 May 2012:

http://www.ft.com/intl/cms/s/0/6005a2cc-a9ad-11e1-a6a7-00144feabdc0.html#axzz2zBRouyFL

[132] Simon Nixon, “ECB Can’t Fix Euro Zone’s Governance Crisis,” Wall Street Journal, 14 November 2011:

http://www.wsj.com/articles/SB10001424052970204190504577036341026971330

[133] “Europe: rise of the calculating machine,” Financial Times, 9 November 2011:

http://www.ft.com/intl/cms/s/2/000cb4ae-0abc-11e1-b9f6-00144feabdc0.html#axzz358Pqb0Hq

[134] Ross Douthat, “Conspiracies, Coups and Currencies,” New York Times, 19 November 2011:

http://www.nytimes.com/2011/11/20/opinion/sunday/douthat-conspiracies-coups-and-currencies.html

[135] Roger Altman, “We need not fret over omnipotent markets,” Financial Times, 1 December 2011:

http://www.ft.com/intl/cms/s/0/890161ac-1b69-11e1-85f8-00144feabdc0.html#axzz1fnNHC8YP

[136] Philip Stephens, “A race between growth and populism,” The Financial Times, 30 May 2013:

http://www.ft.com/intl/cms/s/0/2bb5c128-c79d-11e2-be27-00144feab7de.html#axzz2ZL49BXwm

[137] Europe Economic Research, “The Euro Area Adjustment: About Halfway There,” JPMorgan Chase, 28 May 2013, pages, 1-2, 5, 12-13.

[138] Niki Kitsantonis, “Greek Protest of Austerity Drive Erupts in Violence,” New York Times, 23 February 2011:

http://www.nytimes.com/2011/02/24/world/europe/24greece.html

[139] Kerin Hope, “Greeks adopt ‘won’t pay’ attitude,” Financial Times, 9 March 2011:

http://www.ft.com/intl/cms/s/0/84839398-4a6d-11e0-82ab-00144feab49a.html?siteedition=intl#axzz23vuU01cM

[140] Peter Wise, “Portugal’s ‘desperate generation’ cries out,” Financial Times, 11 March 2011:

http://www.ft.com/intl/cms/s/0/95990eb8-4c09-11e0-82df-00144feab49a.html#axzz3SbxWzFYR

[141] Leigh Phillips, “Protests against ‘austerity summit’ turn violent,” EUObserver, 24 March 2011:

https://euobserver.com/economic/32058

[142] “Tahrir Square in Madrid: Spain’s Lost Generation Finds Its Voice,” Spiegel Online, 19 May 2011:

http://www.spiegel.de/international/europe/tahrir-square-in-madrid-spain-s-lost-generation-finds-its-voice-a-763581.html

[143] Giles Tremlett and John Hooper, “Protest in the Med: rallies against cuts and corruption spread,” The Guardian, 19 May 2011:

http://www.theguardian.com/world/2011/may/19/protest-med-cuts-corruption-spain

[144] Ivan Watson, “Thousands protest G-8 summit this week,” CNN, 21 May 2011:

http://www.cnn.com/2011/WORLD/europe/05/21/france.g8.protests/

[145] Jerome Roos, “Protesters take to the streets of 100+ European cities,” RoarMag, 29 May 2011:

http://roarmag.org/2011/05/protesters-take-to-the-streets-of-100-european-cities/

[146] Tracy Rucinski and Angeliki Koutantou, “Spanish “indignants” spark wave of European protests,” Reuters, 30 May 2011:

http://uk.reuters.com/article/2011/05/30/uk-spain-protests-idUKTRE74T2O320110530

[147] Gideon Rachman, “2011, the year of global indignation,” Financial Times, 29 August 2011:

http://www.ft.com/intl/cms/s/0/36339ee2-cf40-11e0-b6d4-00144feabdc0.html#axzz3TIhO6lPw

[148] Colin Moynihan, “Wall Street Protest Begins, With Demonstrators Blocked,” New York Times – City Room, 17 September 2011:

http://cityroom.blogs.nytimes.com/2011/09/17/wall-street-protest-begins-with-demonstrators-blocked/

[149] Colin Moynihan, “80 Arrested as Financial District Protest Moves North,” New York Times – City Room, 24 September 2011:

http://cityroom.blogs.nytimes.com/2011/09/24/80-arrested-as-financial-district-protest-moves-north/

[150] Harry Papachristou, “Greece faces auditor verdict, fresh aid at stake,” Reuters, 28 September 2011:

http://www.reuters.com/article/2011/09/28/us-eurozone-idUSTRE78Q1BQ20110928

[151] AFP, “Thousands rally in Portugal to protest austerity plans,” France 24, 1 October 2011:

http://www.france24.com/en/20111001-thousands-rally-protest-austerity-plans-porto-lisbon-portugal-coelho/

[152] Ray Sanchez, “More than 700 arrested in Wall Street protest,” Reuters, 2 October 2011:

http://www.reuters.com/article/2011/10/02/us-wallstreet-protests-idUSTRE7900BL20111002

[153] Erik Eckholm and Timothy Williams, “Anti-Wall Street Protests Spreading to Cities Large and Small,” New York Times, 3 October 2011:

http://www.nytimes.com/2011/10/04/us/anti-wall-street-protests-spread-to-other-cities.html

[154] Alkman Granitsas and Stelios Bouras, “Nationwide Strike Follows Latest Round of Greek Cuts,” Wall Street Journal, 6 October 2011:

http://www.wsj.com/articles/SB10001424052970203388804576612261343333114

[155] NPR staff and wires, “Occupy Wall Street Inspires Worldwide Protests,” NPR, 15 October 2011:

http://www.npr.org/2011/10/15/141382468/occupy-wall-street-inspires-worldwide-protests

[156] RT, “OWS wrapping the planet,” Russia Today, 15 October 2011:

http://rt.com/news/world-ows-movement-rally-935/

[157] “Occupy Wall Street protest goes global,” Seattle Times, 15 October 2011:

http://www.seattletimes.com/nation-world/occupy-wall-street-protest-goes-global/

[158] Daryl Lindsey, “The World from Berlin: ‘The Protests Are an Expression of Bitter Disappointment’,” Spiegel Online, 17 October 2011:

http://www.spiegel.de/international/germany/the-world-from-berlin-the-protests-are-an-expression-of-bitter-disappointment-a-792257.html

[159] “Bank Bashing: Europe’s Politicians Side with the Protesters,” Spiegel Online, 17 October 2011:

http://www.spiegel.de/international/europe/bank-bashing-europe-s-politicians-side-with-the-protesters-a-792199.html

[160] Editorial, “Capitalism and its global malcontents,” Financial Times, 23 October 2011:

http://www.ft.com/intl/cms/s/0/660a5192-fbf5-11e0-b1d8-00144feab49a.html?siteedition=intl#axzz3TSpPiScy

[161] Martin Wolf, “The big questions raised by anti-capitalist protests,” Financial Times, 27 October 2011:

http://www.ft.com/intl/cms/s/0/86d8634a-ff34-11e0-9769-00144feabdc0.html#axzz3TSpPiScy

[162] Dominic Barton, “Capitalism for the Long Term,” McKinsey & Company, Autumn 2012, page 69.

[163] George Magnus, “Social Unrest and Economic Stress: Europe’s Angst, and China’s Fear,” UBS Investment Research, Economic Insights, 20 March 2013, pages 2-3.

[164] Manolis Davradakis, “Emerging Unrest: Looking for a Pattern,” AXA Investment Managers – Research & Investment Strategy, 31 July 2013, page 5.

[165] Insight Report, “Global Risks 2014, Ninth Edition,” World Economic Forum, 2014, pages 9-10.

[166] Insight Report, “Global Risks 2014, Ninth Edition,” World Economic Forum, 2014, page 33.

[167] Insight Report, “Global Risks 2014, Ninth Edition,” World Economic Forum, 2014, page 36.

[168] Insight Report, “Global Risks 2014, Ninth Edition,” World Economic Forum, 2014, page 37.

[169] Ari Shapiro, “World’s Richest People Meet, Muse On How To Spread The Wealth,” NPR, 27 May 2014:

http://www.npr.org/blogs/parallels/2014/05/27/316317191/worlds-richest-people-meet-muse-on-how-to-spread-the-wealth

[170] ICI, Speakers 2014:
http://www.inc-cap.com/speakers_2014.html

[171] Mark Carney, “Inclusive Capitalism: Creating a Sense of the Systemic,” Speech at the Conference on Inclusive Capitalism, 27 May 2014.

[172] Christine Lagarde, “Economic Inclusion and Financial Integrity,” Address to the Conference on Inclusive Capitalism, 27 May 2014:

http://www.imf.org/external/np/speeches/2014/052714.htm

World of Resistance Report: IMF, World Bank, Giant Consultants Admit The Storm Is Coming

World of Resistance Report: IMF, World Bank, Giant Consultants Admit The Storm Is Coming

By: Andrew Gavin Marshall

21 July 2014

Originally posted at Occupy.com

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Following Parts 123 and 4 of the World of Resistance Report, in this fifth installment I examine the warnings of social unrest and revolution emanating from the world’s major international financial institutions like the IMF and World Bank, as well as the world’s major consulting firms that provide strategic and investment advice to corporations, banks and investors around the world.

These two groups – financial institutions and the consultants that advise them – play key roles in the spread of institutionalized corporate and financial power, and as such, warnings from these groups about the threat posed by “social unrest” carry particular weight as they are geared toward a particular audience: the global oligarchy itself.

Organizations like the International Monetary Fund (IMF) and World Bank were responsible for forcing neoliberal economic “restructuring” on much of the developing world from the 1980s onwards, as the IMF and E.U. are currently imposing on Greece and large parts of Europe. The results have been and continue to be devastating for populations, while corporations and banks accumulate unprecedented wealth and power.

As IMF austerity programs spread across the globe, poverty followed, and so too did protests and rebellion. Between 1976 and 1992, there were 146 protests against IMF-sponsored programs in 39 different countries around the world, often resulting in violent state repression of the domestic populations (cited explicitly by Firoze Manji and Carl O’Coill in “The Missionary Position: NGOs and Development in Africa,” International Affairs, Vol. 78, No. 3, 2002).

These same programs by the IMF and World Bank facilitated the massive growth of slums, as the policies demanded by the organizations forced countries to undertake massive layoffs, privatization, deregulation, austerity and the liberalization of markets – amounting, ultimately, to a new system of social genocide. The new poor and displaced rural communities flocked to cities in search of work and hope for a better future, only to be herded into massive urban shantytowns and slums. Today roughly one in seven people on Earth, or over 1 billion, live in slums. (An excellent source on this is Mike Davis’s “Planet of Slums”.)

How the Big Institutions Have Operated

Joseph Stiglitz, the Nobel Prize-winning former chief economist at the World Bank, blew the whistle on the World Bank’s and IMF’s policies in countries around the world – an act for which he was ultimately fired. In an interview with Greg Palast for the Guardian in 2001, Stiglitz explained that the same four steps of market liberalization are applied to every country.

The first includes privatization of state-owned industries and assets. The second step is capital market liberalization, which “allows investment capital to flow in and out,” though as he put it, “the money often simply flows out.” As Stiglitz explained, speculative cash flows into countries, and when there are signs of trouble it flows out dramatically in a matter of days, at which point the IMF demands the countries raise interest rates as high as 30% to 80%, further wrecking the economy.

At this point comes step three, called “market-based pricing,” in which prices get raised on food, water and cooking gas, leading to what Stiglitz calls “Step-Three-and-a-Half: the IMF riot.” When a nation is “down and out, [the IMF] squeezes the last drop of blood out of them. They turn up the heat until, finally, the whole cauldron blows up.” This process is always anticipated by the IMF and World Bank, which have even noted in various internal documents that their programs for countries could be expected to spark “social unrest.”

And finally comes step four, “free trade,” meaning that highly protectionist trade rules go into effect under supervision of the World Bank and World Trade Organization.

imf-protest

Expecting Riots

The term “IMF riots” was applied to dozens of nations around the world that experienced waves of protests in response to the IMF/World Bank programs of the 1980s and 1990s, which plunged them into crisis through austerity measures, privatization and deregulation all enforced under so-called “structural adjustment programs.”

As the Guardian noted in September of 2012, “the European governments are out-IMF-ing the IMF in its austerity drive so much that now the fund itself frequently issues the warning that Europe is going too far, too fast.” Thus, we saw “IMF riots” – protests against austerity and structural adjustment measures – erupting over the past three years in Greece, Spain, Portugal and elsewhere in the E.U.

An academic study published in August of 2011 by Jacopo Ponticelli and Hans-Joachim Voth examined the link between austerity and social unrest, analyzing 28 European countries between 1919 and 2009, and 11 Latin American countries since 1937. The researchers measured levels of social unrest looking at five major indicators: riots, anti-government protests, general strikes, political assassinations and attempted revolutions.

The verdict: The researchers found there was “a clear and positive statistical association between expenditure cuts and the level of unrest.” In other words, the more that austerity was imposed, the more unrest resulted. Spending cuts, they wrote, “create the risk of major social and political instability.”

The Eurozone has been referred to by some as “an unemployment torture chamber” due to the structural reforms to the labor market – enforced through bailout conditions – which were purportedly designed to make it easier for employers to hire and fire but, instead, “firing has utterly dominated the employers’ agendas,” according to the Globe and Mail. This has created a “lost generation” in which unemployment in the E.U. for youths between 16 and 24 amounts to roughly 25% – while in Italy it’s roughly 40% and for Greece and Spain it’s as high as 60%. Tom Rogers, an adviser to Ernst & Young, noted, “Youth joblessness at these levels risks permanently entrenched unemployment, lowering the rate of sustainable growth in the future.”

The head of the IMF, Dominique Strauss-Kahn, warned in 2008 that “social unrest may happen in many places, including advanced economies.” The head of the World Bank, Robert Zoellick, warned in 2009 that “If we do not take measures, there is a risk of a serious human and social crisis with very serious political implications.”

Additionally, in November of 2009, the IMF chief warned the premier British corporate lobbying group, the Confederation of British Industry (CBI), that if a second major bailout of the banks were to occur, democracy itself would be jeopardized. The “man on the street” would not accept further bailouts, Strauss-Kahn said, and “the political reaction will be very strong, putting some democracies at risk.”

Consulting in the Midst of a Crisis

Global consulting firms play a peculiar role in the global economic order. The consulting, or “strategy,” firms became commonplace in the 1960s onward, and were frequently seen as “home to some great minds in the corporate world,” hired by corporate, financial and other institutional clients to advise management on strategy and investments. The Financial Times referred to the industry as “a global behemoth, employing an estimated 3 million people and generating revenues of $300 billion a year,” with the industry’s “product” being “the knowledge vested in its people.”

According to an Oxford team of researchers, in 2011 consulting firms advised on more than $13 trillion of U.S. institutional money. Worldwide, consultants advised roughly $25 trillion worth of assets. Consulting advice was seen to be “highly influential” in the United States; yet despite the enormous power wielded by consultancy firms, the Oxford study found that the funds recommended to investors by consultants did not in the end perform better than other funds.

Still, the influence of giant consulting firms remains, although their reputations have taken some hits along the way. The world’s largest consulting firms at the end of 2013 were McKinsey & Company, Bain & Company, Boston Consulting Group, Booz & Company, PricewaterhouseCoopers, Oliver Wyman, Deloitte Consulting, The Parthenon Group, A.T. Kearney and Accenture. With these large firms advising even larger clients on strategy and investments, it’s worth examining some of the advice and perspectives published by these agencies.

For example, McKinsey & Company, the world’s largest global management consulting firm, published a report in 2012 (Dominic Barton, “Capitalism for the Long Term,” Autumn 2012) noting that in the previous few years the world had been witnessing “a dramatic acceleration in the shifting balance of power between the developed West and the emerging East, a rise in populist politics and social stresses in a number of countries, and significant strains on global governance systems.”

For corporate executives, “the most consequential outcome of the [economic] crisis is the challenge to capitalism itself.” And while “trust in business hit historically low levels more than a decade ago,” McKinsey warned, “the crisis and the surge in public antagonism it unleashed have exacerbated the friction between business and society,” adding to anxiety over rising income inequality and other factors.

Having interviewed over 400 business and government leaders around the world, the McKinsey report noted that “despite a certain amount of frustration on each side, the two groups share the belief that capitalism has been and can continue to be the greatest engine of prosperity ever devised.” However, the report warned, “there is growing concern that if the fundamental issues revealed in the crisis remain unaddressed and the system fails again, the social contract between the capitalist system and the citizenry may truly rupture, with unpredictable but severely damaging results.” McKinsey & Company thus called for “nothing less than a shift from… quarterly capitalism to what might be referred to as long-term capitalism.”

In another instance, KPMG, one of the world’s leading accountancy firms and professional service providers, published a report in 2013 examining a list of “megatrends” in the world leading up to the year 2030 (“Future State 2030: The Global Megatrends Shaping Governments,” KPMG International, 2013). One of the major trends it referred to was “the rise of the individual,” in which technological and educational advancements “have helped empower individuals like never before, leading to increased demands for transparency and participation in government and public decision-making.”

This process is “ushering in a new era in human history,” KPMG went on. With major social issues left unresolved such as growing inequality and access to education, services, employment and healthcare, “growing individual empowerment will present numerous challenges to government structures and processes, but if harnessed, could unleash significant economic development and social advancement.”

The report further warned that there were other major consequences with the “rise of the individual,” including “rising expectations” and increased “income inequality within countries leading to potential for greater social unrest.” The fact that populations are “increasingly connected” and “faster dissemination of information through social media accelerates action” posed other concerns. John Herhalt, a former partner at KPMG, was quoted in the report as saying, “Citizens are not just demanding technologically advanced interactions with government, but also asking for a new voice.”

Further, a 2013 survey of 1,300 CEOs from 68 countries by PricewaterhouseCoopers, another of the world’s largest consulting firms, reported general views shared by CEOs around the world (“Dealing With Disruption: Adapting to Survive and Thrive,” 16th Annual Global CEO Survey). When asked about the ability of firms to deal with the potential impact of disruptive scenarios, the vast majority (75%) of CEOs responded that their companies “would be negatively affected, with major social unrest being cause for the greatest concern.” This was perceived as a greater threat than an economic slowdown in China.

CEOs, noted the report, “know they’ll have to repair the bridges of trust between business and society,” as the global financial crisis and its aftermath “have badly damaged faith in institutions of every kind.” Due to the revolution in social media, it concluded, many new “stakeholders… have an unprecedented amount of clout.”

After in-depth analyses of documents, speeches and reports from the world’s major economic institutions – from international organizations like the World Bank and IMF to global consultancy firms like McKinsey & Company and PricewaterhouseCoopers; and from big banks like HSBC, JPMorgan Chase and UBS to oligarchic platforms like the World Economic Forum – three issues are prevalent in terms of assessing the fears and threats facing the global elite: 1) growing inequality, 2) decline of public trust in institutions of all kinds, and 3) the resulting social unrest.

It should be clear by now that as global inequality continues to rise, trust in institutions will continue to fall, and social unrest will explode in new and more dramatic ways than we have witnessed thus far. We truly are entering a World of Resistance.

Andrew Gavin Marshall is a researcher and writer based in Montreal, Canada. He is project manager of The People’s Book Project, chair of the geopolitics division of The Hampton Institute, research director for Occupy.com’s Global Power Project and World of Resistance (WoR) Report, and hosts a weekly podcast show with BoilingFrogsPost.

World of Resistance Report: Financial Institutions Fear Global Revolution

World of Resistance Report: Financial Institutions Fear Global Revolution

By: Andrew Gavin Marshall

11 July 2014

Originally posted at Occupy.com

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In Part 1 of the WoR Report, I examined Zbigniew Brzezinski’s warnings to elites around the world of the “global political awakening” of humanity. In Part 2, I looked at the relationship between inequality and social instability, and in Part 3 I examined the World Economic Forum’s warnings of growing inequality and the “lost generation” of youth who pose the greatest threat to oligarchic interests around the world. In this fourth installment in the series, we turn to reports from top banks and financial institutions warning about the growing threats to their interests posed by an increasingly disenfranchised and impoverished population – manifested in protests, strikes and social unrest.

In November of 2011, Bob Diamond, the CEO of one of the world’s largest banks, Barclays, stated in a speech: “We’ve seen violent protests in Greece, public sector strikes across Europe, [and] anti-capitalist demonstrations that started on Wall Street have spread to other places around the world.” Diamond added: “Young people have been especially hit hard by high levels of unemployment. The threat of further social unrest remains if we don’t work together to generate stronger economic growth and more jobs.”

A March 2013 report by senior economic adviser George Magnus of UBS Investment Research, entitled “Social Unrest and Economic Stress: Europe’s Angst, and China’s Fear,” noted that “the wave of social unrest that rumbled across Europe between 2008 and 2011 has become less intense… [and] has come as a cause for relief in financial markets.” Yet, he wrote, the occasional upsurge in large-scale national and European-wide anti-austerity protests and strikes “signifies the deep malaise in the complex and fragile trust relationship between European citizens and their governments and institutions.” Since 2010, approximately 13 out of 19 E.U. governments had been voted out of office or had collapsed, indicating that “public anger… is far from dormant, and its expression is mostly unpredictable.”

Social unrest, added the UBS report, “is a systemic phenomenon” that is “highly uncertain, complex and ambiguous,” and which can lead “to the toppling of governments, or even political systems.” Social unrest across the E.U. “has been notable more for the public expression of lack of trust in the institutions of government, including in Brussels,” the headquarters of the European Union.

This “lull” in social unrest, warned Magnus, “is most likely deceptive.” The present problem in Europe “is the same” as the main problems in Europe of the 1930s – when mass poverty, unemployment and social unrest led to the rise of fascism. The underlying problem in both eras was “the inadequacy of mainstream, political channels to address rising public concern about the loss of economic security, social stability and, yes, cultural identity.”

Citing an OECD study, the bank report noted that “austerity has gone hand-in-hand with a variety of forms of social and political instability, and politically-motivated violence.” There have been “heightened levels of social unrest and shocks to the political system in Greece, Spain, Portugal and Italy… sometimes requiring the force of the state to suppress it.” These are especially important matters for banks to pay attention to, since the European debt crisis was caused primarily by the big banks – and the austerity and “structural reform” policies (along with the bailouts that accompanied them) were designed for the benefit of those banks as well. Thus, resistance to austerity and “reform” is, in effect, resistance to the bailouts for the big banks.

In May of 2013, JPMorgan Chase released a report, “The Euro Area Adjustment: About Halfway There,” which assessed “progress” in the European Union on the issue of austerity and structural reform. The “adjustment” of European society, claimed the report, was “about halfway done on average,” noting that the process would continue for much of the rest of the decade although it faced major challenges, including the development of “new institutions” in the E.U. and what the bank called “national legacy problems.” This vague term referred to “the constitutions and political settlements in the southern periphery [of the E.U.], put in place in the aftermath of the fall of fascism, [which] have a number of features which appear to be unsuited to further integration in the region.”

Just what does this mean? The bank explained that “fiscal austerity” was likely to be a major feature in the E.U. “for a very extended period.” However, if the European Monetary Union is to survive the coming decade, “deep seated political problems in the periphery… need to change.” But what precisely are these “deep seated problems”? The bank elaborated that many of the southern periphery states’ constitutions “tend to show a strong socialist influence,” referring to the fact that many constitutions guaranteed various social rights for populations, including labor, healthcare and educational and civil rights.

Further, the bank reported that many of these nations suffer from the following features: “Weak executives; weak central states relative to regions; constitutional protection of labor rights; consensus building systems… and the right to protest if unwelcome changes are made to the political status quo.” The translation: democracy itself is the problem. As such, JPMorgan noted, “the process of political reform has barely begun.” In other words, out with democracy and in with financial and corporate oligarchy.

The bank’s report also noted that there were a number of potential threats as the process of “political reform” advanced, including “the collapse of several reform minded governments in the European south,” a “collapse in support for the Euro or the E.U.,” the possibility of “an outright electoral victory for radical anti-European parties,” or perhaps even “the effective ungovernability of some Member States once social costs (particularly unemployment) pass a particular level.” JPMorgan Chase warned that while there wasn’t a current situation of “ungovernability” in E.U. states, the longer-term prospects were “hard to predict, and a more pronounced backlash to the current approach to crisis management cannot be excluded.”

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AXA, one of the world’s largest financial institutions and insurance companies, published a report in July of 2013 written by Manolis Davradakis, entitled “Emerging Unrest: Looking for a Pattern,” which expressed particular concerns and perspectives on the issue of social unrest. The report noted that emerging market economies “are currently experiencing a surge in political risk due to social unrest that is being fueled by reasons that differ from those that resulted in the Arab Spring.”

The “main cause” of unrest in emerging market nations was “the rise of the middle class,” as this portion of the population “realize that they continue to experience the same everyday problems as poorer population strata, namely a high crime rate, poor public services, and corruption.” The report cited examples of social unrest in Turkey and Brazil, warning that these countries could see their credit ratings cut if the social upheaval is “lasting.”

The AXA report referred to the multiple episodes of unrest across emerging market nations in the summer of 2013 as “riots,” stating that they had several points in common, namely that “they were sparked by a government decision affecting daily life” and that the protesters were “not affiliated with political parties or movements” but instead were “well educated members of the middle class.” These factors were reminiscent of the massive unrest that took place in the advanced economies during the 19th century when emerging middle classes were struggling “for better living standards and more representation in political governance.”

Beyond a certain point, warned AXA, “repressing mass demands for a more open society becomes costly and economically ineffective.” A government’s inability or lack of will “to acknowledge the people’s right to freedom of expression and a voice in decision-making is a source of social unrest.”

AXA devised a Poor Governance Index (PGI), analyzing seven key indicators that could lead to social unrest, and concluded that the potential for instability in the BRIC nations – Brazil, Russia, India and China – was quite high. It also cited increased potential for unrest in Egypt, Ukraine, Indonesia, South Africa, Tunisia and Turkey, warning that such unrest “may have implications for emerging market [credit] ratings.” It noted that several credit ratings agencies had already warned about the effects that “prolonged social unrest” could have on the ratings for Turkey and Brazil.

Going further, in July of 2013, Stephen D. King, chief economist of HSBC bank, warned that growing wealth gaps and increasing divisions between generations could result in youth uprisings similar to the Peasants Revolt of the Middle Ages. King commented: “I am intrigued at the moment that the youth are quite peaceful, and I wonder whether that might change. It is very difficult to predict but youth movements might become more focused on their own rights rather than the economy.”

In October of 2013, King wrote an op-ed for the New York Times in which he warned that as bad as things already were, “they are going to get much worse, for the United States and other advanced economies, in the years ahead,” writing that both sides of the North Atlantic region had “already succumbed to a Japan-style ‘lost decade’” in which “promises can no longer be met, mistrust spreads and markets malfunction.” King wrote that “facing the pain will not be easy,” especially as policy makers continue to “opt for the illusion” and “pray for a strong recovery… because the reality is too bleak to bear.”

The “bleak” reality is that these and other big banks and financial institutions have repeatedly collapsed the global economy and profited along the way, punishing entire societies and populations into poverty through a process of plundering and exploitation as governments feared the wrath of “financial markets.” The banks that are now bigger, more dangerous and more powerful than ever fear the growing discontent, unrest and resistance of populations – especially the youth. The world’s major financial institutions fear that the global economic system which they helped to create, and over which they rule, will ultimately come back to haunt them in the form of mass social unrest, potentially undermining their power and the system as a whole.

Andrew Gavin Marshall is a researcher and writer based in Montreal, Canada. He is project manager of The People’s Book Project, chair of the geopolitics division of The Hampton Institute, research director for Occupy.com’s Global Power Project and World of Resistance Report, and hosts a weekly podcast show with BoilingFrogsPost.

World of Resistance Report: Davos Class Jittery Amid Growing Warnings of Global Unrest

 World of Resistance Report: Davos Class Jittery Amid Growing Warnings of Global Unrest

By: Andrew Gavin Marshall

Originally posted on 4 July 2014 at Occupy.com

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In Part 1 of the WoR Report, I examined the “global political awakening” as articulated by arch-imperial strategist Zbigniew Brzezinski. In Part 2 published last week I took a more detailed look at the ways global inequality and injustice relate to the coming era of instability and social unrest. Here, in Part 3, I explore the warnings on inequality and revolt now coming from one of the premier institutions of the global oligarchy: the World Economic Forum.

As an annual gathering of thousands of leading financial, corporate, political and social oligarchs in Davos, Switzerland, the World Economic Forum (WEF) has taken a keen interest in recent years discussing the potential for social upheaval as a result of mass inequality and poverty. A WEF report released in November of 2013 warned that a “lost generation” of unemployed youth in Europe could potentially pull the Eurozone apart. One of the report’s authors, the CEO of Infosys, commented that “unless we address chronic joblessness we will see an escalation in social unrest,” noting that youth especially “need to be productively employed, or we will witness rising crime rates, stagnating economies and the deterioration of our social fabric.” The report added: “A generation that starts its career in complete hopelessness will be more prone to populist politics and will lack the fundamental skills that one develops early on in their career.”

In short, if the global ruling class – known affectionately as the Davos Class – doesn’t quickly find ways to accommodate the continent’s increasingly unemployed and “lost” youth, those people will potentially turn to “populist politics” of resistance that directly challenge the global political and economic order. For the individuals and interests represented at the World Social Forum, this poses a monumental and, increasingly, an existential threat.

The World Economic Forum’s Global Competitiveness Report for 2013-2014, entitled “Assessing the Sustainable Competitiveness of Nations,” noted that the global financial crisis and its aftermath “brought social tensions to light” as economic growth was not translated into positive benefits for much or most of the planet’s population. Citing the Arab Spring, growing unemployment in Western economies and increasing income inequality, there was growing recognition that dangerous upheaval could be on the way. The report noted: “Diminishing economic prospects, sometimes combined with demand for more political participation, have also sparked protests in several countries including, for example, the recent events in Brazil and Turkey.”

The WEF report wrote that “if economic benefits are perceived to be unevenly redistributed within a society,” this could frequently result in “riots or social discontent” such as the Arab Spring revolts, protests in Brazil, the Occupy Wall Street movement, and other recent examples. The report concluded that numerous nations were at especially high risk of social unrest, including China, Indonesia, Turkey, South Africa, Brazil, India, Peru and Russia, among others.

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In early 2014, the World Economic Forum released the 9th edition of its Global Risks report, published to inform the debate, discussion and planning of attendees and guests at the annual WEF meeting in Davos. The report was produced with the active cooperation of major universities and financial corporations, including Marsh & McLennan Companies, Swiss Re, Zurich Insurance Group, National University of Singapore, University of Oxford, and the University of Pennsylvania’s Wharton Risk Management and Decision Processes Center. It included a large survey conducted in an effort to assess the major perceived risks to the global order atop which the Davos Class sits.

The report noted that the “most interconnected” risks were fiscal crises, structural unemployment and underemployment, all of which link to “rising income inequality and political and social instability.” The young generation now coming of age globally, noted the WEF, “faces high unemployment and precarious job situations, hampering their efforts to build a future and raising the risk of social unrest.” This “lost generation” faces not only high unemployment and underemployment, but also major educational challenges since “traditional higher education is ever more expensive and its payoff more doubtful.”

Perceiving the innovations and skills of today’s generation which are enabling the growing foment, the Forum noted:

“In general, the mentality of this generation is realistic, adaptive and versatile. Smart technology and social media provide new ways to quickly connect, build communities, voice opinion and exert political pressure… [youth are] full of ambition to make the world a better place, yet feel disconnected from traditional politics and government – a combination which presents both a challenge and an opportunity in addressing global risks.”

The Global Risks 2014 report cited a global opinion survey on the “awareness, priorities and values of global youth,” which the authors refer to as “generation lost.” This generation, noted the survey, “think independently of this basic fallback system of the older generation – governments providing a safety net,” which “points to a wider distrust of authorities and institutions.” The “mindset” of today’s youth has been additionally shaped by the repercussions and apparent failures to deal with the global financial crisis, as well as increasing revelations about U.S. intelligence agencies engaging in massive digital spying. For a generation largely mobilized through social media, online spying has held particular relevance, as “the digital revolution gave them unprecedented access to knowledge and information worldwide.”

Protests and anti-austerity movements were able to “give voice to an increasing distrust in current socio-economic and political systems,” with youth making up significant portions of “the general disappointment felt in many nations with regional and global governance bodies such as the EU and the International Monetary Fund.” The youth “place less importance on traditionally organized political parties and leadership,” which creates a major “challenge for those in positions of authority in existing institutions” as they try “to find ways to engage the young generation,” adds the report.

According to the World Bank, more than 25% of the world’s youth, or some 300 million people, “have no productive work.” On top of this, “an unprecedented demographic ‘youth bulge’ is bringing more than 120 million new young people on to the job market each year, mostly in the developing world.” This fact “threatens to halt economic progress, creating a vicious cycle of less economic activity and more unemployment,” which “raises the risk of social unrest by creating a disaffected ‘lost generation’ who are vulnerable to being sucked into criminal or extremist movements.”

Noting that more than 1 billion people currently live in slums – a number that has been steadily increasing as income inequality rises – the report stated that “this growing population of urban poor is vulnerable to rising food prices and economic crises, posing significant risks of chronic social instability.” Growing income inequality is now being termed a “systemic risk,” according to the WEF. And in a stark admission from that institution representing the world’s major profiteers of global capitalism, the report acknowledged that globalization “has been associated with rising inequality between and within countries” and that “these factors render poor people and poor countries vulnerable to systemic risks.”

The four major “emerging market” BRIC nations of Brazil, Russia, India and China “now rank among the 10 largest economies worldwide.” But slow political reforms within these countries, coupled with external economic shocks (like financial crises caused by Western nations and their corporate institutions) could aggravate the “existing undertones of social unrest.” Within the BRIC nations and other emerging market economies, “popular discontent with the status quo is already apparent among rising middle classes, digitally connected youths and marginalized groups,” the report went on. Collectively, these groups “want better services (such as healthcare), infrastructure, employment and working conditions,” as well as “greater accountability of public officials, better protected civil liberties and more equitable judicial systems.” Further, a “greater public awareness of widespread corruption have sharpened popular complaints.”

Both Brazil and Turkey have made universal healthcare systems a constitutional obligation, which was a stated ambition of other emerging market nations such as India, Indonesia and South Africa. The failure to create these healthcare systems “may arouse social unrest,” warned the WEF. The World Economic Forum’s chief economist, Jennifer Blanke, stated: “The message from the Arab Spring, and from countries such as Brazil and South Africa is that people are not going to stand for it any more.” David Cole, the group chief risk officer of Swiss Re (one of the contributing companies to the WEF report) commented: “The members of generation lost are not lost because they have tuned out. They are highly tuned in. They are lost because they are being left out or they are deciding to leave.” http://www.theguardian.com/business/2014/jan/16/income-gap-biggest-risk-global-community-world-economic-forum

The World Economic Forum’s Risk report for 2014 was primarily concerned with “the breakdown of social structures” and “the decline of trust in institutions.” It warned of risks of “ideological polarization, extremism – in particular those of a religious or political nature – and intra-state conflicts such as civil wars.” All of these issues relate directly “to the future of the youth.”

It’s an interesting paradox for an organization to see the greatest threat to its ideological and social power being “the future of the youth” when it has already written off the present generation as “lost.” However, this is a view shared not only by the World Economic Forum but, increasingly, by other powerful institutions creating something of an echo chamber through the mainstream media. The head of the IMF has warned that youth unemployment in poor nations was “a kind of time bomb,” and the head of the International Labor Organization (ILO) warned in 2011 that the “world economy” was unable “to secure a future for all youth,” thus undermining “families, social cohesion and the credibility of policies.” While there was “already revolution in the air in some countries,” as reported in the Globe and Mail, the dual crises of unemployment and poverty were “fuel for the fire.”

In April of 2014, the World Economic Forum on Latin America reported that the primary challenge for the region was “to reduce inequality,” noting that between 70 and 90 million people in Latin America had entered what were referred to as the “consuming classes,” or “middle classes,” over the previous decade. However, Marcelo Cortes Neri, Brazil’s Minister of Strategic Affairs, explained, “When we talk about middle class we think of the U.S. middle class, with two cars and two dogs and a swimming pool. That is not Latin American middle class or the world middle class.”

He added that the emerging so-called “middle class” in Latin America and elsewhere “could become a problem for governance,” commenting: “They are the ones that put pressure for better levels of education and healthcare; they are the ones that go to the streets to demand rights.” Neri then posed the question: “How prepared is Latin America to have a robust middle class?” In particular, youth between the ages of 15 and 29 raised specific concerns for Latin America’s elite, with Neri warning: “This is the group I am most worried about. They have very high expectations and so the probability they will get frustrated is enormous.”

When one of the world’s most influential organizations representing the collective interests of the global oligarchy openly acknowledges that globalization has increased inequality, and in turn, that inequality is fueling social unrest around the world manifesting the greatest potential threat to those oligarchic interests, we can safely say we’re entering a new era of global instability and resistance.

Andrew Gavin Marshall is a researcher and writer based in Montreal, Canada. He is project manager of The People’s Book Project, chair of the geopolitics division of The Hampton Institute, research director for Occupy.com’s Global Power Project and World of Resistance Report, and host of a weekly podcast show with BoilingFrogsPost.

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

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

By: Andrew Gavin Marshall

Originally posted at Occupy.com

26 June 2014

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

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

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

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

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

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

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

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

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

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

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

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What Does All the Inequality Mean in Terms of Instability?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Andrew Gavin Marshall is a researcher and writer based in Montreal, Canada. He is project manager of The People’s Book Project, chair of the geopolitics division of The Hampton Institute, research director for Occupy.com’s Global Power Project and the World of Resistance (WoR) Report, and hosts a weekly podcast show with BoilingFrogsPost.

 

Revolution and Repression in America

Revolution and Repression in America
The Technological Revolution and the Future of Freedom, Part 2
Global Research, June 29, 2010

This is Part 2 of the series, “The Technological Revolution and the Future of Freedom.“

Part 1: The Global Political Awakening and the New World Order


Introduction

As outlined in Part 1 of this series, “The Technological Revolution and the Future of Freedom,” there are two major geopolitical realities in the world today, both largely brought about as a result of the “Technological Revolution” in which technology and electronics have come to define and shape our society.

The Technological Revolution has led to a diametrically opposed, antagonistic, and conflicting geopolitical reality: never before has humanity been so awakened to issues of power, exploitation, imperialism and domination; and simultaneously, never before have elites been so transnational and global in orientation, and with the ability to impose such a truly global system of scientific despotism and political oppression. These are the two major geopolitical realities of the world today. Never in all of human history has mankind been so capable of achieving a true global political psycho-social awakening; nor has humanity ever been in such danger of being subjected to a truly global scientific totalitarianism, potentially more oppressive than any system known before, and without a doubt more technologically capable of imposing a permanent despotism upon humanity. So we are filled with hope, but driven by urgency. In all of human history, never has the potential nor the repercussions of human actions and ideas ever been so monumental.

Not only is the awakening global in its reach, but in its very nature. It creates within the individual, an awareness of the global condition. So it is a ‘global awakening’ both in the external environment, and in the internal psychology. This new reality in the world, coupled with the fact that the world’s population has never been so vast, presents a challenge to elites seeking to dominate people all over the world who are aware and awakened to the realities of social inequality, war, poverty, exploitation, disrespect, imperialism and domination. This directly implies that these populations will be significantly more challenging to control: economically, politically, socially, psychologically and spiritually. Thus, from the point of view of the global oligarchy, the only method of imposing order and control – on this unique and historical human condition – is through the organized chaos of economic crises, war, and the rapid expansion and institutionalization of a global scientific dictatorship. Our hope is their fear; and our greatest fear is their only hope.

(See: The Global Political Awakening and the New World Order)

This essay (Part II) will undertake an examination of these two geopolitical realities on a national scale, focusing primarily on the “American Awakening.”

The American Awakening

In the past decade, there has been an enormous surge in popular political activism, which has corresponded to the expansion of imperialism, exploitation and despotism in the world. The events of September 11th, 2001, sparked two major geopolitical events. The first was the implementation of the Bush Doctrine – the “War on Terror” – which was organized in response to the terrorist attacks. This imperialist expansion led to the war and occupation of Afghanistan, the war on Iraq and subsequent occupation, the war in Lebanon in 2006, the war on Somalia, continuing military expansionism and imposition in the Palestinian territories, as well as expansive covert operations in the Middle East, Central Asia, Africa and around the world.

The second major geopolitical trend instigated by the 9/11 attacks was the formation of what has come to be known as the “9/11 Truth Movement,” in which millions of people around the world, including thousands of academics, architects, engineers, government officials, intelligence and military officials and other professionals, as well as an exponentially growing abundance of people in the general population internationally have sought to question and challenge the official accounts of the events of 9/11. Like all activist groups, there are fringe and radical elements within the movement, those who claim that “no planes” were used in the attacks, or that the attacks were undertaken by Israel – with anti-Semitic undertones – or other such fringe theories. Regardless of the fringe elements, the main focus of the movement is based around the fact that the official story of events does not stand up to any form of independent and unbiased, rational analysis. The media for years ignored the growing international movement, but only in recent years have acknowledged the movement; however, they did not address the movement by analyzing the information and issues, but rather by seeking to discredit and demonize the political movement, focusing on the fringe elements and beliefs and applying labels of “conspiracy theorist,” attempting to discredit anyone who questions the official story.

In 2006, Time Magazine acknowledged that the 9/11 Truth Movement is not a “fringe movement,” but is, in fact, “a mainstream political reality.” They also cited a major political poll by Scripps-Howard in 2006, which revealed that 36% of Americans think it is “very likely” or “somewhat likely” that government officials either allowed the attacks to be carried out or carried out the attacks themselves.[1]

The growth of this movement spurred on major new movements and political activism, driven almost exclusively by organized and ‘politically awakened’ civilians. Driven largely by the Internet, this movement has awakened a mass of people globally to the political and strategic reality of what is known – in military terms – as a “false flag operation”, in which an attack is carried out against a certain target, where those undertaking the attack fly the flag of someone else (i.e., “false flag”) in an effort to implicate them in the attack; and thus the response to an attack would be against the perceived attackers. It is, essentially, a covert military strategem: a strategic deception. The Greek dramatist and playwright Aeschylus wrote that, “In war, the first casualty is truth.” A false flag attack an act of war that is deliberately designed to deceive and hide the truth. It is an attack carried out and blamed on one’s enemy in order to justify implementing a political agenda. Governments have used such tactics for centuries, and especially western nations in the past half-century.[2]

This movement has spawned an activist resurgence in other global issues, such as the global economic system, and most notably, the central banking system, particularly the Federal Reserve. While many Americans knew next to nothing about their central bank, the Federal Reserve, a growing movement of Americans and others around the world were educating themselves about the Federal Reserve System and the global banking system in general. Many found a leader in a Texas Congressman named Ron Paul, who campaigned on the Republican ticket for President in 2008, and who drew the widest grassroots support from across the nation of any Republican candidates. Among Democrats, “9/11 Truthers” and others critical of US foreign policy came to find a passionate leader in Cynthia McKinney, who was one of the lone voices in Congress to directly challenge the Bush administration on the official version of events, and has challenged the election fraud in 2000 and 2004, conducted a Congressional hearing on covert activities in Africa, exposing the hand of western nations behind the Rwandan genocide and Congo Civil War.

In late 2008, as the government began its financial bailout of the banks, the “End the Fed” movement emerged in sporadic protests at the 12 Federal Reserve Banks located around the country, and over 40 protests took place across the nation within a matter of months.[3]

The “Homeland Security State” Targets Dissenters

With the increasing militarization of foreign policy, we also see the increasing militarization of domestic politics, and most notably the emergence of a high-tech surveillance police state: a “Homeland Security State.” National and international elites are in the process of incrementally constructing a ‘new totalitarianism’ in replacing democracy.[4] Civil rights and freedoms are dismantled through anti-terrorist legislation, wiretapping and internet surveillance are rampant and expansive, “watch lists” are constructed, which often include the names of dissenters, and the military is increasingly poised to partake in policing. Further, over the past decade, we have seen the rapid expansion of “Continuity of Government” (COG) plans, which plan for the suspension of the Constitution and imposition of martial law in the event of an emergency.[5] At this point in American society, if there was a rapid and expansive economic collapse or another major terrorist attack on US soil, America would transform into a military government, more fascist in nature than anything; but equipped with an arsenal and “technetronic” police state the likes of which no dictator in history has had access to. Freedom has never been so threatened; yet, people have never been so mobilized in modern history to challenge the threats to freedom and democracy in America, in the west, and in the world.

(See: The Transnational Homeland Security State and the Decline of Democracy )

In 2003, General Tommy Franks gave an interview with Cigar Aficionado magazine in which he elaborated on this concept. Tommy Franks was the former Commander of the Pentagon’s Central Command over the Middle East, and thus he was the top General overseeing the wars in Afghanistan and Iraq. In his interview with the magazine, Franks stated that the objective of terrorism is “to change the mannerisms, the behavior, the sociology and, ultimately, the anthropology of a society,” and thus, in the event of another major terrorist attack in America or in the West:

the western world, the free world, loses what it cherishes most, and that is freedom and liberty we’ve seen for a couple of hundred years in this grand experiment that we call democracy. Now, in a practical sense, what does that mean? It means the potential of a weapon of mass destruction and a terrorist, massive casualty-producing event somewhere in the western world—it may be in the United States of America—that causes our population to question our own Constitution and to begin to militarize our country in order to avoid a repeat of another mass-casualty-producing event. Which, in fact, then begins to potentially unravel the fabric of our Constitution.[6]

One interesting facet that very little is known about in the militarization of domestic society and incremental totalitarianism is how the coercive state apparatus, while being justified under the guise of fighting terrorism or “protecting the Homeland,” is in fact being directed against citizen activists and popular political movements. For example, following 9/11, the Department of Homeland Security established what are known as “Fusion Centers,” set up all over the United States, and which are designed as “information sharing and collecting” hubs, in which agencies like the CIA, FBI, Department of Justice, Homeland Security and the US Military collect and analyze information together. As of July 2009, there were 72 acknowledged Fusion Centers around the United States.[7] Think of them as local surveillance centers, because that’s what they are.

Fusion Centers are also positioned to take part as local command centers in the event of a national emergency or implementation of “Continuity of Government” plans to declare martial law. State and local law enforcement agencies provide the majority of information to the local Fusion Centers, which is then analyzed and disseminated to the major intelligence, military or Homeland Security departments and agencies. However, in recent years, Fusion Centers have been criticized for their purported agenda, as they are justified on the basis of acting as centers designated for “counter-terrorism” purposes, but in practice are directed against citizen groups.

In the spring of 2009, it was revealed that the Missouri Information Analysis Center (MIAC) – a Fusion Center – had put out an information pamphlet designed to help law enforcement officials identify “potential domestic terrorists.” According to the report:

If you’re an anti-abortion activist, or if you display political paraphernalia supporting a third-party candidate or a certain Republican member of Congress, if you possess subversive literature, you very well might be a member of a domestic paramilitary group.[8]

When did our society become something out of 1984? When did our governments designate “subversive literature” as a sign of terrorism? The report classified such activities as being part of a “Modern Militia Movement,” and further identified “potential threats to American security” as:

People who supported former third-party presidential candidates like Texas Rep. Ron Paul, Chuck Baldwin and former Georgia Rep. Bob Barr are cited in the report, in addition to anti-abortion activists and conspiracy theorists who believe the United States, Mexico and Canada will someday form a North American Union.[9]

In other words, those who are opposed to the political and economic process of “North American integration”[10] are seen and identified as “potential militia members.” The report even directly identified possession of such films like the anti-Federal Reserve film, “America: Freedom to Fascism” as “potential signals of militia involvement.”[11] The document put out by the Fusion Center further warned law enforcement officials to be “on the lookout” for “bumper stickers advertising third party candidates, or people with copies of the United States Constitution.” The report wrote that due to the economic crisis, “a lush environment for militia activity has been created,” and:

It goes on to cite possible militia members as people who talk about the New World Order conspiracy, express anger with the Federal Reserve banking system, resist paying taxes, warn other citizens about the perceived dangers of radio frequency identification (RFID) or lobby for a return to strict constitutionalism as possible threats to law enforcement.

While the memo does offer something of a lopsided summary of many of the various groups which swelled enormously following the terrorist attacks of Sept. 11, 2001, it also links individuals who are otherwise peaceful with the Ku Klux Klan and other violent organizations.[12]

Another Fusion Center in Virginia identified many universities as potential “radicalization nodes” for terrorists, singling out “historically black colleges” as potential threats, and “it also contains an extensive list of peaceful American and International activist groups from nearly all cross-sections of political engagement, placing them side-by-side with groups that have long been known for resorting to violence.”[13]

In April of 2009, the ACLU (American Civil Liberties Union) released a report on the threat to liberties and civil rights posed by the Fusion Centers, saying that, “Fusion centers have experienced a mission creep in the last several years, becoming more of a threat than a security device. With no overarching guidelines to restrict or direct them, these centers put Americans’ privacy at huge risk.” The ACLU report identified several “troubling incidents” in regards to Fusion Centers violating privacy and civil rights:

– A May 7, 2008 report entitled “Universal Adversary Dynamic Threat Assessment” authored by a private contractor that labeled environmental organizations like the Sierra Club, the Humane Society and the Audubon Society as “mainstream organizations with known or possible links to eco-terrorism”;

– A potential abuse of authority by DHS officials who improperly monitored and disseminated the communications of peace activists affiliated with the DC Anti-War Network (DAWN);

– A report produced on February 19, 2009 by the North Central Texas Fusion System entitled “Prevention Awareness Bulletin” which described a purported conspiracy between Muslim civil rights organizations, lobbying groups, the anti-war movement, the U.S. Treasury Department, hip hop bands and former Congresswoman and presidential candidate Cynthia McKinney to “provide an environment for terrorist organizations to flourish”;

– A “Strategic Report” produced February 20, 2009 by the Missouri Information Analysis Center that described a purported security threat posed by the “modern militia movement” but inappropriately included references to social, religious and political ideologies, including support of third party presidential candidates such as Congressman Ron Paul and former Congressman Bob Barr; and

– A “Protective Intelligence Bulletin” issued by the DHS Intelligence Branch of the Threat Management Division of the Federal Protective Service which improperly collected and disseminated information regarding political demonstrations and inappropriately labeled peaceful advocacy groups and other activists as “extremists.”[14]

To those in power, ‘peace’ is an ‘extremist’ idea, because ‘war’ and ‘violence’ are the norms to them. Now it has come to the point where those who challenge the structures of power are simply designated as terrorists and extremists. This is an incredibly dangerous political road at which the end is despotism and the death of democracy. Congresswoman Cynthia McKinney, as one of those identified by Fusion Centers as providing “an environment for terrorist organizations to flourish,” had this to say about the Fusion Center report:

As a student of COINTELPRO, the government’s infamous Counter-Intelligence Program [directed against the Civil Rights Movement in the 1960s], I know what my government is capable of doing to quash dissent. That’s why I voted against the Patriot Act, worked in Congress to roll back the Secret Evidence Act, and introduced legislation to repeal the Military Commissions Act. I come from a long legacy of activists for justice and freedom inside this country. I am on the advocacy front lines for peace abroad and justice at home. But I know that we will not have peace or justice without truth. Truth is the foundation of the dignity that we seek. Dignity for all is not a threat to the United States.[15]

It has become evident that the response of the American government to the “global political awakening” within the United States is aimed at demonizing, discrediting, and oppressing activist groups and political movements. But how far can this oppression go?

Detention Camps for Dissidents?

One startling and deeply concerning development in the area of “Homeland Security” is the highly secretive and deliberately quiet establishment of “detention centers” within the United States, designed to house millions of people in the event of an “emergency.” In 2002, Attorney General John Ashcroft “announced [a] desire for camps for U.S. citizens he deems to be ‘enemy combatants’,” and that his plan “would allow him to order the indefinite incarceration of U.S. citizens and summarily strip them of their constitutional rights and access to the courts by declaring them enemy combatants.”[16]

Also in 2002, it was reported that FEMA, the Federal Emergency Management Agency (now under the purview of the Department of Homeland Security), was “moving ahead with plans to create temporary cities that could handle millions of Americans after mass destruction attacks on U.S. cities.” Newsmax reported that, “FEMA was seeking bids from three major real estate and/or engineering firms to help prepare for the creation of the emergency cities, using tents and trailers – if an urban area is attacked by NBC (nuclear, chemical or biological) weapons.”[17]

In 2006, Dick Cheney’s former company, Halliburton, and its subsidiary company, Kellogg-Brown & Root (KBR) received a major contract from the Department of Homeland Security worth $385 million, which was given “to support the Department of Homeland Security’s (DHS) U.S. Immigration and Customs Enforcement (ICE) facilities in the event of an emergency.” A press release on KBR’s website stated that:

The contract, which is effective immediately, provides for establishing temporary detention and processing capabilities to augment existing ICE Detention and Removal Operations (DRO) Program facilities in the event of an emergency influx of immigrants into the U.S., or to support the rapid development of new programs.[18]

Further, it stated that, “The contract may also provide migrant detention support to other U.S. Government organizations in the event of an immigration emergency, as well as the development of a plan to react to a national emergency, such as a natural disaster. In the event of a natural disaster, the contractor could be tasked with providing housing for ICE personnel performing law enforcement functions in support of relief efforts.”[19]

Within two weeks, “Homeland Security Secretary Michael Chertoff announced that the Fiscal Year 2007 federal budget would allocate over $400 million to add 6,700 additional detention beds (an increase of 32 percent over 2006).” As historian and author Peter Dale Scott reported:

Both the contract and the budget allocation are in partial fulfillment of an ambitious 10-year Homeland Security strategic plan, code-named ENDGAME, authorized in 2003. According to a 49-page Homeland Security document on the plan, ENDGAME expands “a mission first articulated in the Alien and Sedition Acts of 1798.” Its goal is the capability to “remove all removable aliens,” including “illegal economic migrants, aliens who have committed criminal acts, asylum-seekers (required to be retained by law) or potential terrorists.”[20]

Considering that the government labels anti-war activists, libertarians, progressives, and other peaceful citizens groups as “extremists,” “paramilitary members” and “terrorists,” this is especially concerning. In 2008, a former US Congressman wrote an article for the San Francisco Chronicle in which he warned that, “Since 9/11, and seemingly without the notice of most Americans, the federal government has assumed the authority to institute martial law, arrest a wide swath of dissidents (citizen and noncitizen alike), and detain people without legal or constitutional recourse in the event of ‘an emergency influx of immigrants in the U.S., or to support the rapid development of new programs’.” He elaborated:

Beginning in 1999, the government has entered into a series of single-bid contracts with Halliburton subsidiary Kellogg, Brown and Root (KBR) to build detention camps at undisclosed locations within the United States. The government has also contracted with several companies to build thousands of railcars, some reportedly equipped with shackles, ostensibly to transport detainees.[21]

As Peter Dale Scott explained:

the contract evoked ominous memories of Oliver North’s controversial Rex-84 “readiness exercise” in 1984. This called for the Federal Emergency Management Agency (FEMA) to round up and detain 400,000 imaginary “refugees,” in the context of “uncontrolled population movements” over the Mexican border into the United States. North’s activities raised civil liberties concerns in both Congress and the Justice Department. The concerns persist.

“Almost certainly this is preparation for a roundup after the next 9/11 for Mid-Easterners, Muslims and possibly dissenters,” says Daniel Ellsberg, a former military analyst who in 1971 released the Pentagon Papers, the U.S. military’s account of its activities in Vietnam. “They’ve already done this on a smaller scale, with the ‘special registration’ detentions of immigrant men from Muslim countries, and with Guantanamo.”

Plans for detention facilities or camps have a long history, going back to fears in the 1970s of a national uprising by black militants. As Alonzo Chardy reported in the Miami Herald on July 5, 1987, an executive order for continuity of government (COG) had been drafted in 1982 by FEMA head Louis Giuffrida. The order called for “suspension of the Constitution” and “declaration of martial law.”[22]

More recently, there have been several reported incidents of small towns having major “detention centers” being built in them which remain empty and maintained for the event of an “emergency.” One such facility is being proposed for the City of Italy to build “a detention center for illegal immigrants.”[23] There was also an effort to have a detention center built in Benson City “to house illegal immigrants.”[24] A major American prison corporation, Corplan Corrections, “has been at the center of numerous controversies, including a bizarre prison-building scheme in Hardin, Montana that involved a private military force called American Police Force run by an ex-con. The prison cost the small town $27 million but never housed any prisoners.” Further, Corplan “has approached city officials in several towns across the U.S. – Benson, Arizona; Las Cruces, New Mexico; and Weslaco, Texas – with a proposal to build a new detention center for immigrant families.”[25]

These facilities, built under the pretences of housing “illegal immigrants” yet largely remaining empty, could potentially be used to house not only immigrants, but also Muslims and “possibly dissenters” following a major emergency, such as an economic collapse or terrorist attack within the United States. After all, in World War II, Canada and the United States rounded up Japanese and German immigrants into internment camps. Again, it becomes evident that the response of power structures to the manifestation of the global political awakening within the United States is to oppress and suppress the people, and with that, undermine democracy itself.

The Prospects of Revolution

During the first phase of the global economic crisis in December of 2008, the IMF warned governments of the prospect of “violent unrest on the streets.” The head of the IMF warned that, “violent protests could break out in countries worldwide if the financial system was not restructured to benefit everyone rather than a small elite.”[26] Naturally, the IMF director leaves out the fact that he is part of that small elite and that the IMF functions for the benefit of that very same elite.

In late December of 2008, “A U.S. Army War College report warn[ed] an economic crisis in the United States could lead to massive civil unrest and the need to call on the military to restore order.” The report stated that, “Widespread civil violence inside the United States would force the defense establishment to reorient priorities … to defend basic domestic order and human security.”[27]

Throughout 2009, there was an abundance of civil unrest, protests and even riots all across Europe in response to the economic crisis. In February of 2009, Obama’s intelligence chief, Dennis Blair, the Director of National Intelligence, told the Senate Intelligence Committee that the economic crisis has become the greatest threat to U.S. national security:

I’d like to begin with the global economic crisis, because it already looms as the most serious one in decades, if not in centuries … Economic crises increase the risk of regime-threatening instability if they are prolonged for a one- or two-year period… And instability can loosen the fragile hold that many developing countries have on law and order, which can spill out in dangerous ways into the international community.[28]

In other words, the economic crisis poses two major social threats to the “national security” (i.e., imperial status) of the United States. Of key importance is that America and other western nations may lose control of their colonial possessions and interests in the developing world – Africa, South America and Asia – as the people in those regions, the most “politically awakened” in the world, can cause “regime-threatening instability” as the prospects of riots, rebellion and revolution expose the failure of their national leaders and governance structures. This would pose an immense threat to the interests of the west in those regions, as they primarily rely upon local nation-states to control the populations and resources. Concurrently, these revolts could spread to the developing world. So western elites are faced with the prospects of possibly losing their control over the world’s resources and even their own domestic populations. The natural reaction, in imperial logic, is to militarize both the foreign and domestic spheres.

No wonder then, that in 2008, the highest-ranking general in the United States, “Adm. Michael Mullen, chairman of the Joint Chiefs of Staff, ranks the financial crisis as a higher priority and greater risk to security than current wars in Iraq and Afghanistan.” He explained, “It’s a global crisis. And as that impacts security issues, or feeds greater instability, I think it will impact on our national security in ways that we quite haven’t figured out yet.”[29]

The head of the World Trade Organization (WTO) warned that, “The global economic crisis could trigger political unrest equal to that seen during the 1930s.” He elaborated, “The crisis today is spreading even faster (than the Great Depression) and affects more countries at the same time.”[30]

In February of 2009, renowned economic historian and Harvard professor, Niall Ferguson, predicted a “prolonged financial hardship, even civil war, before the ‘Great Recession’ ends,” and that, “The global crisis is far from over, [it] has only just begun, and Canada is no exception,” he said while at a speaking event in Canada. He explained, “Policy makers and forecasters who see a recovery next year are probably lying to boost public confidence,” while, “the crisis will eventually provoke political conflict.” He further explained:

There will be blood, in the sense that a crisis of this magnitude is bound to increase political as well as economic [conflict]. It is bound to destabilize some countries. It will cause civil wars to break out, that have been dormant. It will topple governments that were moderate and bring in governments that are extreme. These things are pretty predictable.[31]

Even in May of 2009, the head of the World Bank warned that, “the global economic crisis could lead to serious social upheaval,” as “there is a risk of a serious human and social crisis with very serious political implications.”[32] Zbigniew Brzezinski himself warned in February of 2009 that, “There’s going to be growing conflict between the classes and if people are unemployed and really hurting, hell, there could be even riots!”[33]

In March of 2010, Moody’s, a major credit ratings agency, warned that “social unrest” is coming to the west, as the US, the UK, Germany, France, and Spain “are all at risk of soaring debt costs and will have to implement austerity plans that threaten ‘social cohesion’.”[34]

In 2007, a British Defence Ministry report was released assessing global trends in the world over the next 30 years. In assessing “Global Inequality”, the report stated that over the next 30 years:

[T]he gap between rich and poor will probably increase and absolute poverty will remain a global challenge… Disparities in wealth and advantage will therefore become more obvious, with their associated grievances and resentments, even among the growing numbers of people who are likely to be materially more prosperous than their parents and grandparents.  Absolute poverty and comparative disadvantage will fuel perceptions of injustice among those whose expectations are not met, increasing tension and instability, both within and between societies and resulting in expressions of violence such as disorder, criminality, terrorism and insurgency. They may also lead to the resurgence of not only anti-capitalist ideologies, possibly linked to religious, anarchist or nihilist movements, but also to populism and the revival of Marxism.[35]

Further, the report warned of the dangers to the established powers of a revolution emerging from the disgruntled middle classes of the west:

The middle classes could become a revolutionary class, taking the role envisaged for the proletariat by MarxThe globalization of labour markets and reducing levels of national welfare provision and employment could reduce peoples’ attachment to particular states.  The growing gap between themselves and a small number of highly visible super-rich individuals might fuel disillusion with meritocracy, while the growing urban under-classes are likely to pose an increasing threat to social order and stability, as the burden of acquired debt and the failure of pension provision begins to bite.  Faced by these twin challenges, the world’s middle-classes might unite, using access to knowledge, resources and skills to shape transnational processes in their own class interest.[36]

From the Old World to the New

So here we are, in the year 2010, the end of the first decade of the 21st century; and what a century it has been thus far: 9/11, a recession, the war on Afghanistan, the “war on terror”, the war on Iraq, terrorist attacks in Bali, Madrid, London and all across the Middle East; the war on Somalia, the Congo Civil War (the deadliest conflict since World War II, with upwards of 6 million innocent civilians killed since 1996); the Russia-Georgia war, the expansion of the war into Pakistan, the election of Barack Obama, the global economic crisis and here we are.

All of human history is the story of the struggle of free humanity – the individual and the collective – against the constructs of power, which sought to dominate and control humanity. From humanity’s origins in Africa, civilizations rose and fell, dominated and decimated. From Ancient Egypt to Greece and Rome, the Chinese dynasties, the Mayans and Aztecs, all sought domination of land and people. The Persian Empire and the Ottoman Empire expanded and controlled vast populations and diverse people; and with the emergence of Capitalism came the emergence of the European powers.

For the past 500 years, Europe and America have dominated the world; and in fact, only in the last 65 years has America dominated the globe. The Peace of Westphalia was signed in 1648, ending the Thirty Years’ War in the Holy Roman Empire and the Eighty Years’ War between Spain and the Republic of the Seven United Netherlands. This agreement effectively ended the Holy Roman Empire, and marked the emergence of the idea of the modern nation-state. University studies in International Relations begin with the Peace of Westphalia, as it is viewed as the beginning of the international system we know today.

Out of this emerged the great European empires: the Portuguese, the Spanish, the Dutch, and later the French, British and German empires, which created the first global political economy with the Atlantic Slave Trade, trading weapons and goods in exchange for captured slaves, fueling internal civil wars among the large African empires to feed them a supply of slaves which they then took to the Americas to use as a labour force. That labour force would produce goods taken back to Europe, traded among the world’s empires, and ultimately financing the continued flow of weapons into Africa. It was a triangular trade between Europe, Africa and the Americas. At this time, the notion of ‘race’ originated through a series of legal decisions made in the colonies.

In the 1600s, the colonies in the Americas were made up of white, Indian and black indentured labourers and slaves, both ‘un-free blacks and whites, with blacks being a minority, yet they still “exercised basic rights in law.” A problem arose for elites attempting to control the labour class: the un-free native labour force knew the land and could escape easily (so they would later be largely eliminated through genocide); and in the 1660s, the labour class was becoming rebellious, where black and white labourers worked together and rebelled against local elites. The entire lower class of society was united – regardless of their varied and expansive differences – and they were united against the elites. Thus, a doctrine of ‘divide and conquer’ was implemented against the psycho-social foundations of the people.[37]

The elite “relaxed the servitude” of the white labourers, and “intensified the bonds of black slavery,” and subsequently “introduced a new regime of racial oppression. In doing so, they effectively created the white race – and with it white supremacy.” Thus, “the conditions of white and black servants began to diverge considerably after 1660.” Following this, legislation would separate white and black slavery, prevent “mixed” marriages, and seek to prevent the procreation of “mixed-race” children. Whereas before 1660, many black slaves were not indentured for life, this changed as colonial law increasingly “imposed lifetime bondage for black servants – and, especially significant, the curse of lifetime servitude for their offspring.”[38]

A central feature of the social construction of this racial divide was “the denial of the right to vote,” as most Anglo-American colonies previously allowed free blacks to vote, but this slowly changed throughout the colonies. The ruling class of America was essentially “inventing race.” Thus, “Freedom was increasingly identified with race, not class.”[39]

In 1648, the nation-state emerged; in 1660, racism was created through legal decisions; and in 1694, the Bank of England was created and the birth of the central banking system took place. All of these were essentially ‘social constructions’ – nation, race, currency – in which they are simply ideas that are accepted as reality. A nation is not a physical entity, race has no true basis for discrimination or hierarchy, and a currency has no actual value. They only hold as true because everyone accepts them as true.

From this period of immense transition, European imperial nations dominated the world; racism justified their domination, and central banks dominated the empires at home and abroad. The 1800s saw the Industrial Revolution, which instigated the decline of slavery and the emergence of paid labour and hourly wages. Eventually, the notion of ‘race science’ emerged within the eugenics movement, originating in Europe, and later migrating to the United States in the late 19th century. This helped justify the ‘Scramble for Africa’, which began in the 1880s and entailed the European empires formally colonizing the entire continent of Africa, carving it into nations among them, but justifying it on the basis of a racist “civilizing mission.”

The European imperial age declined with World War I, a battle of empires and economies. This led to the collapse of many European empires as well as the Ottoman and Russian empires, with the emergence of the Soviet Union as well as nation-states in the Middle East. The emergence of fascism took root in the 1920s and 30s, and grew to coalesce in World War II, which led to the ultimate decline of the British and French empires, and the emergence of the American empire.

America became the engine of empire for the Atlantic community, Europe and North America. It created and ran international organizations allowing for transnational elites to share power among an increasingly global – an increasingly smaller – group of elites. The World, for nearly fifty years, was defined as a global struggle between Communism and Democracy – between the Soviet Union and the West. This historical myth hides the face of global domination: a struggle between two blocs for global domination of the world’s people and resources.

With the end of the Cold War came the emergence of the New World Order, a world in which there was only one global power: the United States. I was born shortly before the Berlin Wall came down, and I developed a memory only after the Soviet Union collapsed; the only world I know is the one in which the United States has been the only global power. I know only the era of ‘globalization’ and the promises it made my generation. Think of the effect upon the youth this great period of transition will have.

The history of humanity is one of constant change, sometimes slow and incremental, at other times rapid and expansive. Today, we are in a period in which we are seeing a convergence of never-before-seen global realities. The population of the world has never been so monumentally large – at 6.8 billion – and among the global population, for the first time in human history, there is a true “global political awakening.” This does not mean that everyone is correct in their views, but it does mean that the world’s people are thinking and acting – even if incidentally or unknowingly – about the global polity. This is most especially so in the areas where the Atlantic world has dominated for so long, as they have been subjected to poverty, racism, and war like no other people on earth. Their ‘awakening’ was forced upon them, and the west is now having its awakening forced upon it.

At our current position, we are about to undergo a global historical period of transition, the likes of which has never before been seen. The incremental and slow building ‘global political awakening’ that emerged around the world in the past century, is reaching a precipice and rapid expansion at the beginning of the 21st century. Global power has never been so centralized, with international institutions and systems of global governance holding authority over several realms of humanity. We are partaking in global wars seeking to dominate populations and control resources, democracy is eroding in the west, and wealth disparities have never been so great in all of human history.

For the first time in the last 500 years, the East has risen – with China and India – as new global powers, rising within the system not against it; marking the first time that nation-states have not risen against the global power, but with the global power. China and India are being brought within a new global political and economic system that is being constructed: a global totalitarian system of continental colonies to a global state. In 1998, then Secretary-General of NATO, Javier Solana, gave a speech in which he said:

It is my general contention that humanity and democracy – two principles essentially irrelevant to the original Westphalian order – can serve as guideposts in crafting a new international order, better adapted to the security realities, and challenges, of today’s Europe.[40]

Further, he explained, “the Westphalian system had its limits. For one, the principle of sovereignty it relied on also produced the basis for rivalry, not community of states; exclusion, not integration.” Thus, to truly have global power, the international system of nation-states must be ‘re-imagined’ and altered: first, into continental governance structures, and ultimately a global structure. As Solana said, “In the United Nations, the ideal of a global institution including all nations became a reality,” and “the ideal of European integration was set in motion.” He elaborated:

But an integral part of the evolution of the Atlantic Alliance was the idea of reconciliation: the integration of our militaries, the common project of collective defence, and the willingness to work towards a common approach to defend the Alliance’s common values.

Unfortunately, also out of the same ashes of the second world war emerged the East-West confrontation that left Europe deeply divided for more than four decades. As our century comes to an end, we at last have the opportunity to overcome this division and to set free all the creative energies this continent can muster to build the new security order which will lead us into the 21st century.[41]

It is a difficult balancing act for global powers – particularly the United States – to manage the integration of China into the ‘new world order’, while simultaneously both of them compete for control of global resources, located primarily in regions of the world which are experiencing the most rapid and extensive ‘awakening’. The imperial mindset – like that of Brzezinski’s – seeks to rationalize global power as being equated with ‘global stability’, and that without empire, there is only ‘chaos’. Thus, imperial logic dictates that America must seek to dominate as much of the world as fast as possible, and hence control global resources, which will allow it to determine the terms of China and other powers’ inclusion in the new world order. This has the potential to spark a global war – a World War III type of scenario between the NATO powers and the China-Russia alliance – the Shanghai Cooperation Organization (SCO) – who seek to share power, not to be dominated. Global populations at home and abroad have never been so challenging to control: global war is inevitable in the imperial mindset. As Brzezinski himself stated in a speech to Chatham House in London in 2009:

But these major world powers, new and old, also face a novel reality: while the lethality of their military might is greater than ever, their capacity to impose control over the politically awakened masses of the world is at a historic low. To put it bluntly: in earlier times, it was easier to control one million people than to physically kill one million people; today, it is infinitely easier to kill one million people than to control one million people.[42]

In many people’s view of the global economic crisis, the problem was ‘greed’. Greed is not the problem, it is but a symptom of the disease that is ‘power’; which, like a cancer, expands and kills its host. Humanity is entering what will likely be the most turbulent period in human history. The future is not yet written; all that is certain is that everything will change. What it comes down to is the greatest human struggle in the history of our small little planet: the struggle of the world’s people – in every corner of the world, from every religion, ‘race’, ethnicity, ideology, language, sex, gender and variation – against a global power elite who control the most advanced, technological, and lethal tools of oppression every conceived. Make no mistake, we are not repeating history, we are making it.

The Power of Ideas

Our awakening is the greatest threat to these global elites, and it is our only hope of protecting any notions of freedom, liberty, family, equality and individuality. It is these notions that have led to and created the greatest developments and ideas in human history. Humanity’s best is within these concepts, and its worst is within power. The shame of humanity is within its systems of power, so for humanity to survive we must re-imagine and remodel our global system and global power.

We cannot design a society for humanity without taking into consideration human nature. If you build it, they will come. If we keep creating positions of great power, and continually globalize power, it will attract exactly the wrong type of people to those positions of power: the ones that want it and want to abuse the power. These people are more likely to get to these positions of power because they are willing to do anything to get there, which means that once they have it, they will do anything to maintain and expand it. And so power grows, and the cancer spreads. Imagine if Hitler’s rise to power took place not in the era of nation-states, but in the era of the ‘global state.’ All that is required is one tyrant, and humanity is nothing if not proof that there are always tyrants in waiting.

What is a nation? Is it an army, a flag, an anthem, or a building of government? A nation is an idea – and is constructed by a series of ideas. There is no ‘real’ border, it is an imaginary line, and everyone in the world pretends they are there, and nation-states (which are really people who are in control of these ideas), govern accordingly. Now we are in a period in which elites are attempting to re-imagine the international community, to erase the ‘idea’ of borders, and to ultimately re-program humanity to follow their example. Social planners seek to control not simply our land, resources and bodies, but most importantly, our minds. World government will be sold to us on the ‘ideas’ of peace, something all of humanity wants; all save the powerful, for war and conflict is the means through which power is accumulated and society is transformed.

True peace will never be possible with a singular global power structure; for once power is globally centralized, what more can the powerful seek to achieve? Thus, the powerful fight each other for control of the centralized authority, paranoia governs their minds, and distrust and hatred directs their actions. Power subsequently becomes its own worst enemy, as it eats away at its host and destroys the body within which it lives.

True peace can only come from human understanding. Free humanity must understand each other if we are to live among each other. We cannot any longer view each other through the lenses of power: through the media, government, economic, and social structures. These structures are designed with the intent to mislead and misrepresent people, they are illegitimate and must be considered as such. We must view and understand each other on a human level: on ideas of freedom, liberty, family, equality and individually. To achieve that understanding, one realizes that freedom must be for all or none, that liberty is not to be selective, the importance of family, the necessity of equality and the acceptance and celebration of individuality. With that, peace is inevitable. With power, peace is impossible.

Just as elites seek to re-imagine and recreate our world, we too, can do the same. This must begin with the human understanding, where we enter into a new Renaissance or Enlightenment, not western, but global; where the people communicate and interact with each other on a personal basis, not through elite structures. This must be the aim of the global political awakening: to achieve peace through peaceful means. If everyone in the world simply decided to no longer acknowledge people and positions of power, that power would vanish. If there is no army, because the soldiers decided to no longer recognize the government, there is no one to pull the trigger on people in the street.

I think, therefore I am. If I think I am free, I will become free. But while an individual can do this, it does not work if everyone doesn’t do it. This requires all people, everywhere, to work together, talk together, learn together, think together and act together. We can either do this now, or potentially be subdued for decades if not longer. If we do not achieve global peace and freedom for all people, if we do not understand each other, power will win, at least for a while. What is important to note is that the emergence of a technetronic society reduces the need for people, as technology can watch, listen, control and kill people with the push of a button. We are also in danger of becoming a docile, tranquilized society, lost in drugs – whether recreational or even more notably, pharmaceutical. We must avoid entering into a ‘brave new world’, and instead bravely construct a different world.

From the militarization of domestic society, it would appear as if we are moving into a world quite reminiscent of George Orwell’s 1984, in which the world is divided into a few major regional blocs that war against each other and terrorize their populations through acts of physical terror and total surveillance (“Big Brother”). This is but a phase and evolution into the final stage – the grand idea – or as Aldous Huxley referred to it, “The Ultimate Revolution”: the global scientific dictatorship. That will be the focus of the third and final part in this series.


This is Part 2 of the series, “The Technological Revolution and the Future of Freedom.“

Part 1: The Global Political Awakening and the New World Order


Endnotes

[1]        Lev Grossman, Why the 9/11 Conspiracy Theories Won’t Go Away. Time Magazine: September 3, 2006: http://www.time.com/time/magazine/article/0,9171,1531304,00.html

[2]        Andrew Gavin Marshall, State-Sponsored Terror: British and American Black Ops in Iraq. Global Research: June 25, 2008: http://www.globalresearch.ca/index.php?context=va&aid=9447; Andrew Gavin Marshall, Breaking Iraq and Blaming Iran. Global Research: July 3, 2008: http://www.globalresearch.ca/index.php?context=va&aid=9450 ; Andrew Gavin Marshall, Operation Gladio: CIA Network of “Stay Behind” Secret Armies. Global Research: July 17, 2008: http://www.globalresearch.ca/index.php?context=va&aid=9556 ; also see: Daniele Ganser, NATO’s secret armies: operation Gladio and terrorism in Western Europe, (Frank Cass: 2005).

[3]        Chris Steller, Minneapolis Federal Reserve draws third protest in six months. The Minnesota Independent: April 25, 2009: http://minnesotaindependent.com/33400/end-the-fed-minneapolis

[4]        Andrew Gavin Marshall, The Transnational Homeland Security State and the Decline of Democracy. Global Research: April 15, 2010: http://www.globalresearch.ca/index.php?context=va&aid=18676

[5]        Peter Dale Scott, Supplanting the United States Constitution: War, National Emergency and “Continuity of Government”. Global Research: May 19, 2010: http://www.globalresearch.ca/index.php?context=va&aid=19238 ; Peter Dale Scott, Martial Law, the Financial Bailout, and War. Global Research: January 8, 2009: http://www.globalresearch.ca/index.php?context=va&aid=11681

[6]        Marvin R. Shanken, General Tommy Franks: An exclusive interview with America’s top general in the war on terrorism. Cigar Aficionado Magazine: December 1, 2003: http://www.cigaraficionado.com/Cigar/CA_Profiles/People_Profile/0,2540,201,00.html

[7]        Amy Goodman, Broadcast Exclusive: Declassified Docs Reveal Military Operative Spied on WA Peace Groups, Activist Friends Stunned. Democracy Now! July 28, 2009: http://www.democracynow.org/2009/7/28/broadcast_exclusive_declassified_docs_reveal_military

[8]        Joshua Rhett Miller, ‘Fusion Centers’ Expand Criteria to Identify Militia Members. Fox News: March 23, 2009: http://www.foxnews.com/politics/2009/03/23/fusion-centers-expand-criteria-identify-militia-members/

[9]        Joshua Rhett Miller, ‘Fusion Centers’ Expand Criteria to Identify Militia Members. Fox News: March 23, 2009: http://www.foxnews.com/politics/2009/03/23/fusion-centers-expand-criteria-identify-militia-members/

[10]      Andrew Gavin Marshall, Tyrants and Traitors: The “Evolution by Stealth” of a North American Union. Global Research: August 7, 2007: http://www.globalresearch.ca/index.php?context=va&aid=6475

[11]      Joshua Rhett Miller, ‘Fusion Centers’ Expand Criteria to Identify Militia Members. Fox News: March 23, 2009: http://www.foxnews.com/politics/2009/03/23/fusion-centers-expand-criteria-identify-militia-members/

[12]      Stephen C. Webster, Missouri retracts police memo which labeled activists as ‘militia’. The Raw Story: March 26, 2009: http://rawstory.com/news/2008/Missouri_retracts_police_memo_which_labeled_0326.html

[13]      Stephen C. Webster, Fusion center declares nation’s oldest universities possible terror threat. The Raw Story: April 6, 2009: http://www.rawstory.com/news/2008/Virginia_terror_assessment_targets_enormous_crosssection_0406.html

[14]      Press Release, ACLU Calls For Internal DHS Investigations On Fusion Centers. ACLU: April 1, 2009: http://www.aclu.org/technology-and-liberty/aclu-calls-internal-dhs-investigations-fusion-centers

[15]      Press Release, ACLU Calls For Internal DHS Investigations On Fusion Centers. ACLU: April 1, 2009: http://www.aclu.org/technology-and-liberty/aclu-calls-internal-dhs-investigations-fusion-centers

[16]      Jonathan Turley, Camps for Citizens: Ashcroft’s Hellish Vision. Los Angeles Times: August 14, 2002: http://www.commondreams.org/views02/0814-05.htm

[17]      Christopher Ruddy, FEMA’s Plan for Mass Destruction Attacks: Of Course It’s True. Newsmax: August 6, 2002: http://archive.newsmax.com/archives/articles/2002/8/6/183147.shtml

[18]      Press Release, KBR Awarded U.S. Department of Homeland Security Contingency Support Project for Emergency Support Services. KBR: January 24, 2006: http://www.kbr.com/Newsroom/Press-Releases/2006/01/24/KBR-Awarded-US-Department-of-Homeland-Security-Contingency-Support-Project-for-Emergency-Support-Services/

[19]      Ibid.

[20]      Peter Dale Scott, 10-Year U.S. Strategic Plan For Detention Camps Revives Proposals From Oliver North. New American Media: February 26, 2006: http://news.ncmonline.com/news/view_article.html?article_id=9c2d6a5e75201d7e3936ddc65cdd56a9

[21]      Lewis Seiler and Dan Hamburg, Rule by fear or rule by law? The San Francisco Chronicle: February 4, 2008: http://articles.sfgate.com/2008-02-04/opinion/17140386_1_martial-law-kbr-national-defense-authorization-act

[22]      Peter Dale Scott, Homeland Security Contracts for Vast New Detention Camps. Global Research: February 6, 2006: http://www.globalresearch.ca/index.php?context=va&aid=1897

[23]      Cindy Sutherland, Italy City Council hears proposal for commercial development. Italy Neotribune: May 18, 2010: http://www.italyneotribune.com/stories/italy-city-council-hears-proposal-for-commercial-development

[24]      Thelma Grimes, Council ‘nay’ on detention center; City wants project funding assurance. Benson News: May 11, 2010: http://www.bensonnews-sun.com/articles/2010/05/12/news/news03.txt

[25]      Forrest Wilder, For the Lucios, Private Prison Consulting is a Family Affair. Texas Observer: April 23, 2010: http://www.texasobserver.org/forrestforthetrees/for-the-lucios-private-prison-consulting-is-a-family-affair

[26]      Angela Balakrishnan, IMF chief issues stark warning on economic crisis. The Guardian: December 18, 2008: http://www.guardian.co.uk/business/2008/dec/16/imf-financial-crisis

[27]      Military.com, Study: DoD May Act On US Civil Unrest. McClatchy-Tribune Information Services: December 29, 2008: http://www.military.com/news/article/study-dod-may-act-on-us-civil-unrest.html

[28]      Stephen C. Webster, US intel chief: Economic crisis a greater threat than terrorism. Raw Story: February 13, 2009: http://rawstory.com/news/2008/US_intel_chief_Economic_crisis_greater_0213.html

[29]      Tom Philpott, MILITARY UPDATE: Official: Financial crisis a bigger security risk than wars. Colorado Springs Gazette: February 1, 2009: http://www.gazette.com/articles/mullen-47273-military-time.html

[30]      AFP, WTO chief warns of looming political unrest. AFP: February 7, 2009: http://www.google.com/hostednews/afp/article/ALeqM5gpC1Q4gXJfp6EwMl1rMGrmA_a7ZA

[31]      Heather Scoffield, ‘There will be blood’. The Globe and Mail: February 23, 2009: http://www.theglobeandmail.com/report-on-business/article973785.ece

[32]      BBC, World Bank warns of social unrest. BBC News: May 24, 2009: http://news.bbc.co.uk/2/hi/business/8066037.stm

[33]      Press TV, Economic Crisis: Brzezinski warns of riots in US. Global Research: February 21, 2009: http://www.globalresearch.ca/index.php?context=va&aid=12392

[34]      Ambrose Evans-Pritchard, Moody’s fears social unrest as AAA states implement austerity plans. The Telegraph: March 15, 2010: http://www.telegraph.co.uk/finance/economics/7450468/Moodys-fears-social-unrest-as-AAA-states-implement-austerity-plans.html

[35]      DCDC, The DCDC Global Strategic Trends Programme, 2007-2036, 3rd ed. The Ministry of Defence, January 2007: page 3

[36]      Ibid, page 81.

[37]      Andrew Gavin Marshall, War, Racism and the Empire of Poverty. Global Research: March 22, 2010: http://www.globalresearch.ca/index.php?context=va&aid=18263

[38]      Ibid.

[39]      Ibid.

[40]      Dr. Javier Solana, “Securing Peace in Europe”, NATO speech: November 12, 1998: http://www.nato.int/docu/speech/1998/s981112a.html

[41]      Ibid.

[42]      Zbigniew Brzezinski, “Major Foreign Policy Challenges for the Next US President,” International Affairs, 85: 1, (2009), page 54 (emphasis added)

VIDEO: Economic Crisis Spreads Unrest Globally

In Thailand, unrest continues with no end in sight. The effects are spreading as unrest continues in Greece and is now beginning in Spain. Are these economic protests the beginning of social revolutions?

In Southeast Asia turmoil continues in Thailand as protesters see no end in sight. The effects are spreading as unrest continues in Greece and is now beginning in Spain. Are these economic protests the beginning of social revolutions?

As the Greek government begins to push for investigations of investment banks, Andrew Gavin Marshall from the Center for Research on Globalization says it’s more than just the banks who are to blame for the crisis.

“Ultimately everyone is responsible in a position of power. The previous Greek governments have been responsible for their bad policies and their collusion with the investment banks. It’s not about one or the other, it’s central banks, investment banks and government power. Together they have all accumulated this bad debt” said Marshall.

Marshall called recent events a “crisis of western civilization.” Citing US Intelligence Director Denis Blair, he said the greatest threat to national security is the regime-threatening instability that could result from the financial crisis.

“In an economic decline, you see imperial mobilization. As empires decline, as the US empire is declining you see rapid increased international violence and war.  You see this militarization abroad, but also the homeland security state at home, which is more about controlling the people than protecting the people. It’s a very global issue; you will have people rising up in rebellion everywhere,” Marshall said.