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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:

http://history.state.gov/historicaldocuments/frus1977-80v03/d56

[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:

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[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

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[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

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

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[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:

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[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:

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

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

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[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

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

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

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The Global Mafiocracy and the Empire of Economics

The Global Mafiocracy and the Empire of Economics

By: Andrew Gavin Marshall

26 March 2015

This is a visual map I drew, outlining some of the institutions and connections in the world of global financial diplomacy and governance.

This is a visual map I drew, outlining some of the institutions and connections in the world of global financial diplomacy and governance.

Dear Readers:

I am aiming to raise $500 in order to complete and publish for all to view and read a sample introduction chapter to my book about the Global Mafiocracy and the Empire of Economics. The chapter would provide a sampling of the subject matter, style and approach to discussing these complex issues in a way that is understandable and approachable to as wide an audience as possible. The sample chapter would be completed relatively soon (in the next week or two), so long as the funding objective is reached so that I can afford to put in the time to complete the draft.

So what is the subject matter and focus of the book?

– Translating the world of Economics and Finance into basic English, dismantling the ‘technical’ language of ‘experts’ into a more direct and honest dialectic

– An introduction to the Global Mafiocracy: the banks, corporations, asset management firms, sovereign wealth funds, insurance companies and holding companies that collectively own each other and the wider network of global corporate and financial institutions, manifesting as a relatively small cartel of roughly 150 large financial institutions that wield unparalleled financial power in the modern world. How did the cartel evolve? What institutions are dominant within it? Who are the individuals and groups that lead these organizations? How is the cartel’s wealth and power accumulated and exercised? What role does the cartel play in the world of global finance, economic and politics?

– Behind the major corporate and financial institutions are individuals and families, smaller units of concentrated power who own the largest shares and steer the operations of the global cartel. These individual oligarchs and family dynasties – from the Rockefellers in the US, to the Wallenbergs in Sweden, Agnellis in Italy, Desmarais’ in Canada, to the House of Saud in Saudi Arabia, Oppenheimer in South Africa, among others – control and.or influence large percentages of wealth within their respective nations and in the world of globalized financial and corporate networks. How did these dynasties and oligarchs emerge? What do they own and control? How is their wealth and power organized and exercised? What are their ideologies, beliefs, objectives?

– Empire and Economics: When people think of Empire, they often imagine the old European colonial powers venturing off to Africa, Latin America and Asia where they would militarily occupy and colonize foreign lands, regions and peoples for their own imperial benefit. While formal colonialism is largely an historical anachronism, unjustifiable and increasingly untenable in the modern world, Empire itself has never vanished. While the military and overtly political components of empire and imperialism remain relevant in the modern world (think: U.S. military, CIA, State Department, NATO, etc.) the most effective and evolved means of imperialism in the world are exercised through the economic and financial spheres. In these realms, empire is more effective because its ideology, objectives, actions and effects are hidden behind vague and obscure language, the “expertise” of economists, finance ministers, central bankers and other technocrats who claim to be separate of politics and only interested in economics. Empire is more evolved in these spheres because it has become the vanguard of the global Mafiocracy and imperial system, leading the political and often military apparatus of empire, far more institutionalized and advanced on a global scale than any parallel in political and military spheres.

– Global Financial Diplomacy and Governance: What are the institutions that manage and shape the imperial economic order? In the world of financial diplomacy and governance, those institutions which wield incredible (and increasingly expanding) power and authority remain largely unknown or misunderstood to the general public. The book will examine some of the origins, evolution and character of many of these institutions, including: the International Monetary Fund (IMF), World Bank, Bank for International Settlements (BIS), Organization for Economic Cooperation and Development (OECD), World Trade Organization (WTO), central banks and finance ministries, among others. What are the specific roles, functions and objectives of these institutions? How do they wield power? In whose interest do they operate? Who leads them?

– State Power: The institutions that make up the world of financial diplomacy and governance rely principally upon state power for legitimacy and political might. Whether it’s a central bank, a finance ministry, the IMF or other agencies, the role of powerful nation states such as the United States and other rich nations is central to the system and structures of the global Empire of Economics. The centrality of state power is made all the more apparent through an examination of the origins and evolution of less formal groupings of nations, such as the Group of Seven (G7), the Group of Five (G5), the Group of Ten (G10) and the Group of Twenty (G20), the principal political forums for the system of global governance and empire. Who attends these forums? What institutions are represented? What are the ideologies and competing interests? What effect do they have? What is the role of the ’emerging market’ nations of China, Russia, Brazil, India, Turkey and South Africa within this system?

– The Global Financial Mafia: What is the relationship and interaction between state power, the various Groups of nations, international institutions, finance ministries and central banks with the global cartel of banks and corporations, and the oligarchs and family dynasties that control the cartel? In what forums do the individuals who lead these various institutions interact, cooperate, communicate, socialize and organize? At various global and national think tanks, foundations, forums, conferences and social events, politicians, finance ministers, central bankers and top technocrats meet, often in secret, with the heads of banks and corporations, patriarchs and matriarchs of powerful family dynasties and other oligarchs. Among such events and forums are: the Bilderberg Group, International Monetary Conference (IMC), World Economic Forum (WEF), the Trilateral Commission, the Institute of International Finance (IIF), and the Group of 30, among others. These forums and events provide political leaders and the heads of influential institutions with a private forum where they are able to have off-the-record, often secretive discussions on important issues of global importance to the populations of their respective nations and the planet as a whole. Collectively, this group, and the institutions which dominate it, compose the Global Mafiocracy: a global political, social and economic system dominated by relatively few nations and institutions that operate largely in the interests of a small, criminal cartel of banks and corporations, a global financial Mafia.

– Top-Down: These institutions, individuals and ideologies will be examined and discussed not as a dry, historical account, but in terms of telling a series of stories. I want to try to present this information and analysis in the same way in which it appeals most to me, a fantastic, interesting, often horrifying and shocking tale of intrigue, empire, power politics, petty tyrants, in-fighting, domination, destruction and empire. I want the people who lead and participate in this system to become as familiar to the reader as they are to me, to see an image and read stories about the personalities and complexities of those who rule and wield power. What emerges is a story, or series of stories, worthy of the the intrigue and interest in historical and fictional accounts of imperial families and ancient empires, of mythical worlds, fantasy tales and science fiction societies. Get a view of our world from the top-down.

– Bottom-Up: In parallel to the institutions, individuals and ideologies that dominate and shape our world from the top-down, there are also processes, people, protests and mass movements or revolutions that shape and re-create and re-imagine the world from the bottom up. While Europe’s finance ministers meet in secret, off the record conversations in distant castles located in Luxembourg, deciding the fate of Europe and its citizens, mass protests and demonstrations and riots take place on the streets of Athens, Madrid, Lisbon, Rome and Frankfurt, in which the populations oppose and reject the decisions being made in far-off places by largely unelected technocrats who do not serve their interests. What role do protests and popular movements have in shaping and changing the modern world? How do the dominant institutions and individuals view and respond to such events and processes? Do they fear the potential of the people? What is that potential, or what could it be? What is the bottom-up story of the Global Mafiocracy and Empire of Economics?

– A Series of Stories: History, its chief actors, institutions and evolution is best understood when told as a story, with characters that readers and observers can relate to, understand, find an interest in, to be intrigued and even horrified. It would seem that the best way to explain the overly and unnecessarily complicated world of economics and finance is to explain it not as one would read in a textbook or industry publication, nor reportage in the financial press, nor through the dry and deceptively dull language and rhetoric of economics, academics, finance ministers, central bankers, technocrats and politicians. No, this is a world best understood through the stories, characters, challenges, triumphs, disasters and wars waged by the personalities and people who have shaped and changed this world. A system of human ‘civilization’ is, after all, ultimately a product of humans, and is, therefore, as deeply flawed, complex, conflicted and intriguing as are most human tales of the rise and fall of kings, queens, emperors, dictators, or the triumphs and tribulations of the ‘common person’, those on the streets, in the schools, bustling around the cities, towns and in the urban slums. Human beings understand human struggles and human stories. Thus, this book is not a history of economics and finance, it is a story of human beings, struggle, suffering, success and complexity. In short, it is a story like any other.

I need your help to write these stories and complete this book, what will be the first in a series. For now, my objective is to write a sample chapter, drawing from the many thousands of pages of research I have done in recent months and years. This chapter would be made available online for all to read, to truly gain a better understanding of the focus, approach and objectives of this book. To do this, I need your help. If this is something you would be interested in reading, please consider donating or sharing and promoting this through social media and other avenues.

My objective is to raise $500 in the short-term. If that goal is reached, the sample chapter will be completed (in rough form) and published online for all to read in April of 2015.

Thank you very much for all the support and encouragement.

Sincerely,

Andrew Gavin Marshall

Global Power Project, Part 4: Banking on Influence with JPMorgan Chase

Global Power Project, Part 4: Banking on Influence with JPMorgan Chase

By: Andrew Gavin Marshall

The following was originally posted at Occupy.com

wall-street-bull_0

In May, JPMorgan Chase was listed as the largest bank in the world with assets at roughly $4 trillion — some $1.53 trillion of it in derivatives. This was reported a month after the announcement that the bank had posted a record first-quarter profit of $6.5 billion.

Jamie Dimon, the bank’s CEO and Chairman, has faced a host of scandals in relation to his management of the megabank, including the loss of roughly $6 billion through the London branch of the bank — losses that Dimon was accused of hiding. A 300-page report by the U.S. Senate, investigating the “creative accounting” of JPMorgan, noted that the bank “hid losses, did not share information with its regulators, and misled the public” in what one banking regulator referred to as “make believe voodoo magic.” Stated bluntly in The New York Times, JPMorgan Chase, the largest derivatives dealer in the world, “is too big to regulate.”

In the midst of the scandal, the bank faced a potential “revolt” of its shareholders in a bid to strip Dimon of his dual role as CEO and Chairman. In confidential government reports which were leaked to The New York Times, the bank was accused of “manipulative schemes” which transformed “money-losing power plants into powerful profit centers” while executives made “false and misleading statements” under oath.

Yet even in the midst of scandal, Jamie Dimon was praised in a storm of support by billionaires, corporate kingpins and media barons. Calling JPMorgan Chase “as good a bank as there is,” New York City mayor and billionaire media baron Michael Bloomberg went on to call Dimon “a very smart, honest, great executive.” News Corporation chairman Rupert Murdoch praised Dimon as “one of the smartest, toughest guys around,” while Jack Welch, former chairman and CEO of General Electric, referred to him as a “great leader” and said he had earned the “right to hold both Chairman and CEO titles.” To top it off, billionaire investor and CEO of Berkshire Hathaway, Warren Buffet, dubbed Dimon “a fabulous banker.”

And the adoration goes all the way to the top rung. In 2009, The New York Times referred to Jamie Dimon as “President Obama’s favorite banker.” In 2010, Obama told Bloomberg BusinessWeek that he didn’t “begrudge” bank CEOs like Jamie Dimon and Lloyd Blankfein of Goldman Sachs for their massive bonuses of $17 and $9 million, respectively. Obama explained: “I, like most of the American people, don’t begrudge people success or wealth. That is part of the free-market system.” The president added, “I know both those guys; they are very savvy businessmen.”

In May of 2012, Obama rushed to Jamie Dimon’s defense in light of the financial scandals, stating that Dimon was “one of the smartest bankers we got.” The Financial Times referred to Dimon as “the last king of Wall Street.” And when finally faced with the decision to strip Dimon of his dual role as chairman and CEO, Obama’s “favorite banker” ended up winning “a decisive victory” by maintaining both his roles.

But this is just the surface of JPMorgan Chase’s financial manipulations. The bank, in fact, was at the forefront of creating Credit Default Swaps (CDS), a key aspect of the derivatives market that led to the inflation and subsequent blowout of the housing bubble. JPMorgan developed these “financial instruments” as a type of insurance policy in 1994, allowing the bank to trade its debt (in the form of loans to corporations and governments) to third parties, thus handing off the risk and removing the debts from its accounts, which allowed it to make further loans. JPMorgan opened up the first CDS desk in New York in 1997, “a division that would eventually earn the name the Morgan Mafia for the number of former members who went on to senior positions at global banks and hedge funds.” Back in 2003, the same Warren Buffet who would later praise Dimon referred to credit default swaps as “financial weapons of mass destruction.”

JPMorgan was also at the forefront in the United States pushing for financial deregulation, particularly the slow-motion dismantling of the Glass-Steagall Act that had been put in place in 1933 in response to the financial speculation which had helped spark the Great Depression. After hearing proposals from banks such as Citicorp, JP Morgan and Bankers Trust, which advocated the loosening of “restrictions” put in place by Glass-Steagall, the Federal Reserve Board in 1987 voted to ease many of the regulations. That same year, Alan Greenspan, who had previously been a director of JP Morgan, became the chairman of the Fed. In 1989, the Fed approved an application submitted by JP Morgan, Chase Manhattan, Citicorp and Bankers Trust to further reduce the regulations imposed by Glass-Steagall. In 1990, JP Morgan became “the first bank to receive permission from the Federal Reserve to underwrite securities.”

Financial deregulation accelerated under President Clinton, much to the delight of Wall Street banks, which were then permitted to merge into megabanks, with JPMorgan merging with Chase Manhattan to form JPMorgan Chase. As early as 2006 and 2007, multiple megabanks were beginning to bet against the housing market through various hedge funds, allowing them to make profits on the housing collapse they created. JPMorgan continued to sell mortgages as it bet against the mortgage market, passing on the risk while it hedged its bets to profit from the failure and losses of others. In 2011, the bank paid a $153 million fine to the Securities and Exchange Commission (SEC) to settle allegations of “securities fraud.”

In the midst of the financial crisis in 2008, JPMorgan Chase became not only a major criminal, but also a prime beneficiary. In 2007, the global investment bank Bear Stearns was named by Fortune magazine as the second “most admired” financial securities company in the United States, while Lehman Brothers was put in first place. As the financial crisis erupted, Bear Stearns executives “discovered” that they were “nearly out of cash” in March of 2008. The CEO of Bear Stearns, Alan Schwartz, made a phone call to Jamie Dimon — JPMorgan Chase was the clearing agent for Bear Stearns — asking for an overnight loan. Dimon, who also sat on the board of directors of the Federal Reserve Bank of New York, turned there instead of providing the loan through his own bank. The president of the New York Fed – who was elected by the banks that own the New York Fed – was Timothy Geithner. Geithner began discussions with Bear Stearns, and the following morning he held a meeting with Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson, the former CEO of Goldman Sachs, where they agreed to an emergency loan for Bear Stearns, providing the funds through JPMorgan Chase.

Over the following day, Geithner and Paulson informed Bear Stearns that it must sell the bank within days, and a deal was negotiated in which JPMorgan Chase would purchase Bear Stearns at $2 per share. Though Dimon had first refused to purchase the failed bank, he now engaged in negotiations with Geithner who won over Dimon by guaranteeing $30 billion for JPMorgan to purchase the sunken bank. Long story short: through the New York Fed, the U.S. government purchased billions of dollars in bad debts made by Bear Stearns, including $16 billion in credit default swaps that were downgraded to “junk” assets, while JPMorgan Chase acquired $360 billion in Bear Stearns assets with little or no risk.

With the purchase of Bear Stearns facilitated by the New York Fed, and for the benefit of JPMorgan, Geithner continued in his role as willing servant to the banks who had elected him as president. Then, in September of 2008 when the insurance conglomerate American International Group (AIG) plunged into crisis and sought support from the government, the Fed and Treasury initially refused. AIG turned to JPMorgan Chase and Goldman Sachs, who went to the government to pressure for state support. The New York Fed, with Geithner at the helm, again organized a secret bailout of the institution, valued at $85 billion. In October, the government added an extra $38 billion to the AIG bailout, and the New York Fed provided a further $40 billion in November. Overall, U.S. taxpayers bailed out the insurance giant with $150 billion.

Because many banks kept junk assets with AIG which didn’t affect its balance sheets, the insurance giant was allowed to continue making risky loans. Meanwhile, the New York Fed, noted Bloomberg journalist David Reilly, acted as “a black-ops outfit for the nation’s central bank,” and as a “quasi-governmental institution [which] isn’t subject to citizen intrusions such as freedom of information requests.” The AIG bailout, wrote Reilly, revealed what could be described as a “secret banking cabal.” Through AIG, bailout funds went to American, French, German, British, Swiss, Dutch and even Canadian banks. Goldman Sachs received over $12 billion, and billions also went to Merrill Lynch, Bank of America, Citigroup, Wachovia, Morgan Stanley, and JPMorgan Chase.

JPMorgan Chase was using bailout money from the government to purchase other banks and companies. As one executive at the bankcommented in regards to a $25 billion bailout from the government, “I think there are going to be some great opportunities for us to grow in this environment.” The banks repaid the bailout loans from other bailout funds they got from government, siphoning off taxpayer moneyback and forth and rewarding them for their risky behavior. One university study noted that banks with political access – whether through lobbying efforts or board membership on the Fed – were more likely to get bailout funds, and in bigger numbers, than other banks. Notably among the most politically connected banks were Goldman Sachs, JPMorgan Chase and Morgan Stanley.

According to a 2012 study by the International Monetary Fund and Bloomberg magazine, JPMorgan Chase continues to receive government support far beyond the bailouts, as it is a major recipient of corporate welfare and state subsidies. In fact, according to the study, the biggest bank in the world gets roughly $14 billion per year in state subsidies and welfare, largely helping “the bank pay big salaries and bonuses.”

The Biggest and Most Connected Bank

Not only is JPMorgan Chase the biggest bank in the world with over $4 trillion in assets, but its power and influence extends far beyond financial matters. It is a major political force in the world, highly integrated within the network of global elites who make up the plutocratic ruling class. As the subject of study for the Global Power Project, I examined 55 people at JPMorgan Chase, including all members of the executive committee, the board of directors and the international advisory council.

Of the 55 individuals examined at the bank, a total of 13 (or roughly 24%) of the individuals were either members or held leadership positions (previously or presently) with the Council on Foreign Relations (CFR). The CFR has been at the heart of the foreign-policy elite of the United States since it was created in 1921. Further, a total of eight JPMorgan officials held leadership positions in the World Economic Forum, the second most represented institutional affiliation of the bank. Holding yearly conferences that bring together thousands of participants from elite financial, corporate, political, cultural, media and other institutions, the WEF is one of the principal forums for the global elite, with JPMorgan operating right there at the center.

The next most represented institution is the Trilateral Commission, with 5 individuals at JPMorgan Chase holding membership in the international think tank – or “global policy group” – uniting elites from North America, Western Europe and Japan (and now also including China, India, and other Pacific-rim nations). The Trilateral Commission itself was founded in 1973 by the CEO of Chase Manhattan Bank – which later merged into JPMorgan Chase – David Rockefeller.

In descending order, the other most highly represented institutions having cross membership between leadership positions with JPMorgan Chase are: the Federal Reserve Bank of New York (4), the Business Council (4), Citigroup (4), Bilderberg (4), the Group of Thirty (4), Sara Lee Corporation (3), Harvard (3), American Express (3), American International Group (3), the Business Roundtable (3), Rolls Royce (3), the Center for Strategic and International Studies – CSIS (3), the European Round Table of Industrialists (3), the Peterson Institute for International Economics (2), the U.S.-China Business Council (2), and the National Petroleum Council (2).

Institutions which hold two individual cross leadership positions with JPMorgan Chase include: the Monetary Authority of Singapore, the University of Chicago, Kohlberg Kravis Roberts & Co., General Electric, Asia Business Council, the U.S. President’s Foreign Intelligence Advisory Board, the National Bureau of Economic Research (NBER), the Coca-Cola Company, National Bank of Kuwait Advisory Board, INSEAD, China-United States Exchange Foundation, Mitsubishi, the Carlyle Group, and the IMF.

Meet the Elites at JPMorgan Chase

It’s worth taking a look at some specific individuals who serve in a leadership and/or advisory capacity to JPMorgan Chase to get an idea of the composition of some of these global plutocrats.

Jamie Dimon, the CEO of JPMorgan Chase, sits on the boards of directors of: the Federal Reserve Bank of New York, Harvard Business School, and Catalyst. He is a Trustee of the New York University School of Medicine, a member of the Executive Committee of the Business Council, a member of the Council on Foreign Relations, a member of the International Business Council of the World Economic Forum, a member of the Financial Services Forum, and a member of the International Advisory Panel of the Monetary Authority of Singapore.

Members of the board of JPMorgan Chase include James A. Bell, former President of Boeing and a current member of the board of Dow Chemical; Crandall C. Bowles, a director of Deere & Company and the Sara Lee Corporation, a former director of Wachovia, a Trustee of the Brookings Institution, on the Governing Board of the Wilderness Society, and a member of the Business Council and the Economic Club of New York. Other JPM board members include Stephen B. Burke, CEO of NBC Universal and Executive Vice President of Comcast Corporation; David M. Cote, the Chairman and CEO of Honeywell International who sits on President Obama’s National Commission on Fiscal Responsibility and Reform, on the advisory panel to Kohlberg Kravis Roberts & Co. (KKR), and is a member of the Trilateral Commission; and Lee Raymond, director of the Business Council for International Understanding, who sits on the advisory panel to KKR, is a member of the Council on Foreign Relations, and former Chairman of the National Petroleum Council as well as former Chairman and CEO of ExxonMobil, from which he retired in 2006 with a compensation package of $398 million.

JPMorgan Chase has an International Council which provides advice to the bank’s leadership on economic, political and social trends across various regions and around the world. The International Council is chaired by Tony Blair, former Prime Minister of the UK, who also sits as an adviser to Zurich Financial. The Council includes Khalid A. Al-Falih, the President and CEO of Saudi Aramco (Saudi Arabian Oil Company), the world’s largest oil company, who also sits on the International Business Council of the World Economic Forum. Former UN Secretary General Kofi Annan is also on JPMorgan’s International Council, and sits as Chairman of the Alliance for a Green Revolution in Africa (AGRA), a partnership between the Bill & Melinda Gates Foundation and the Rockefeller Foundation. Annan is also on the boards of the United Nations Foundation, the World Economic Forum, and he is a member of the Global Board of Advisors of the Council on Foreign Relations.

The Council includes the third richest man in Mexico, Alberto Bailléres, as well as the Chairman and CEO of Telecom Italia, Franco Bernabé, who was the former CEO of Eni, one of the world’s largest oil companies (and Italy’s largest corporation), as well as the former Vice Chairman of Rothschild Europe. Bernabé sits on the board of PetroChina, China’s largest oil company. Bernabé is also a member of the European Round Table of Industrialists (a group of roughly 50 major European CEOs who directly advocate and work with EU political leaders in designing and implementing policy), he was a former Advisory Board member of the Council on Foreign Relations, a member of the board of FIAT, and is actively a member of the Steering Committee of the Bilderberg Meetings.

Martin Feldstein, a prominent Economics professor at Harvard and the President Emeritus of the National Bureau of Economic Research, is another member of the International Council. Feldstein was the Chairman of the Council of Economic Advisers to President Ronald Reagan and sat on the Foreign Intelligence Advisory Board (an “independent” group that advises the president on intelligence matters) under President George W. Bush (from 2007-2009). President Obama appointed Feldstein to the Economic Recovery Advisory Board, and he also sits on the board of the Council on Foreign Relations, is a member of the Trilateral Commission, a participant in Bilderberg Meetings, and is a member of the International Advisory Board of the National Bank of Kuwait.

Gao Xi-Qing is the Vice Chairman, President and Chief Investment Officer of the China Investment Corporation (CIC), China’s sovereign investment fund. He was referred to by the Atlantic as “the man who oversees $200 billion of China’s $2 trillion in dollar holdings.” Another notable Chinese member of the International Council is Tung Chee Hwa, the former Chief Executive and President of the Executive Council of Hong Kong, a core policy-making institution in the government of Hong Kong. Tung Chee Hwa is also the Vice Chairman of the National Committee of the Chinese People’s Political Consultative Conference (CPPCC), a major political advisory group in the People’s Republic of China, once chaired by Mao Zedong. Tung Chee Hwa as well is the founder and Chairman of the China-United States Exchange Foundation, and a former member of the International Advisory Board of the Council on Foreign Relations.

Carla A. Hills is the only woman on the JPMorgan International Council, and is Chairman and CEO of Hills & Company International, a global consulting firm. She was the former United States Trade Representative in the George H.W. Bush administration, where she was the primary negotiator for the North American Free Trade Agreement (NAFTA). She is also the Co-Chair of the Council on Foreign Relations, and sits on the International Boards of Rolls Royce and the Coca-Cola Company, as well as sitting on the board of directors of Gilead Sciences. Hills is a Counselor and Trustee of the Center for Strategic and International Studies (CSIS), a major American think tank where she also sits as Co-Chair of the Advisory Board (alongside Zbigniew Brzezinski, co-founder of the Trilateral Commission). In addition, Hills is a member of the Executive Committee of both the Trilateral Commission and the Peterson Institute for International Economics, as well as sitting on the boards of the International Crisis Group and the US-China Business Council, as Chair of the National Committee on US-China Relations, and Chair of the Inter-American Dialogue.

Henry Kissinger – former U.S. Secretary of State, National Security Adviser to President Richard Nixon, and Secretary of State to President Ford – also sits on the International Council of JPMorgan. Kissinger was a former adviser to Nelson Rockefeller, who recruited Kissinger as director of the Special Studies Project of the Rockefeller Brothers Fund in the 1950s. Kissinger was a director of the Council on Foreign Relations from 1977-1981, is a member of the Trilateral Commission, a former member of the Steering Committee and continuous participant in the Bilderberg Meetings, and is founder and chair of Kissinger Associates, an international consulting and advisory firm. Kissinger Chaired the National Bipartisan Commission on Central America during the Reagan administration, which provided justification for Reagan’s wars in Central America, and he was also a member of the Foreign Intelligence Advisory Board from 1984-1990, advising both Presidents Reagan and George H.W. Bush. Alongside Zbigniew Brzezinski, Kissinger was a member of the Commission on Integrated Long-Term Strategy of the National Security Council and Defense Department, established in the late 1980s to develop a long-term strategy for the United States in the world. Kissinger has also been a member of the Defense Policy Board, providing “independent” advice to the Pentagon leadership on matters of foreign policy, from 2001 to the present, for both the George W. Bush and Barack Obama administrations. Kissinger is also a Counselor and Trustee of the Center for Strategic and International Studies (CSIS), Honorary Governor of the Foreign Policy Association, an Honorary Member of the International Olympic Committee, an adviser to the board of directors of American Express, and is a Trustee Emeritus of the Metropolitan Museum of Art. In addition, Kissinger is a director of the International Rescue Committee, the Atlantic Institute, and is on the advisory board of the RAND Center for Global Risk and Security, as well as Honorary Chairman of the China-United States Exchange Foundation.

Mustafa V. Koc is also a member of the International Council, and is Chairman of Koc Holding AS, Turkey’s largest multinational corporation. He also sits on the International Advisory Board of Rolls Royce, the Global Advisory Board of the Council on Foreign Relations, is a member of the Steering Committee of the Bilderberg Meetings, a former member of the International Advisory Board of the National Bank of Kuwait, and is Honorary Chairman of the Turkish Industrialists and Businessmen’s High Advisory Council.

Gérard Mestrallet is the Chairman and CEO of GDF Suez, one of the largest energy conglomerates in the world, and is on the board of Suez Environment (one of the major water privatization companies in the world), and also sits on the supervisory board of AXA, a major global French financial conglomerate. He is also an advisory board member of Siemens, and is a member of the European Round Table of Industrialists and the International Business Council of the World Economic Forum.

John S. Watson is the Chairman and CEO of Chevron Corporation. He is on the board of the American Petroleum Institute and is a member of the National Petroleum Council, the Business Roundtable, the Business Council, the American Society of Corporate Executives, and the Chancellor’s Board of Advisors of the University of California Davis. He is also a member of the International Business Council of the World Economic Forum.

The Chairman of JPMorgan Chase International, Jacob A. Frenkel, is Chairman and CEO of the Group of Thirty, and a member of the International Council. He is also a former Vice Chairman of American International Group (from 2004 to 2009, when it was rescued with the massive government bailout); the former Chairman of Merrill Lynch International (from 2000 to 2004), and the former Governor of the Bank of Israel (from 1991 to 2000). Frenkel was an Economic Counselor and Director of Research at the International Monetary Fund (from 1987 to 1991) and prior to that he was the David Rockefeller Professor of International Economics at the University of Chicago (from 1973 to 1987). In addition, Frenkel is the former Editor of the Journal of Political Economy, former Vice Chairman of the Board of Governors of the European Bank for Reconstruction and Development, former Chairman of the Board of Governors of the Inter-American Development Bank, and a former member of the International Advisory Board of the Council on Foreign Relations. Frenkel is currently a member of the board of directors of the National Bureau of Economic Research (NBER), a member of the Trilateral Commission, member of the International Advisory Council of the China Development Bank, member of the board of the Peterson Institute for International Economics, member of the Economic Advisory panel of the Federal Reserve Bank of New York, member of the Council for the United States and Italy, member of the Investment Advisory Council of the Prime Minister of Turkey, and sits on the board of Loews Corporation.

To sum: it should be clear, from the evidence, that the leadership of JPMorgan Chase is not an isolated group of individuals involved in finance and exclusively relegated to the banking world, but a highly networked and influential group consisting of central figures in the global plutocracy – referred to as the “Transnational Capitalist Class” – with significant economic, social and political power. To refer to JPMorgan Chase simply as “a bank” is like referring to the United States as just “a country.” A geopolitical force unto itself, and a conglomerate embedded within a transnational network of elite institutions and individuals, JPMorgan Chase goes beyond the financial indicators. Put simply, it is one of the most powerful banks in the world.

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

Global Power Project, Part 2: Identifying the Institutions of Control

Global Power Project, Part 2: Identifying the Institutions of Control

By: Andrew Gavin Marshall

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The following is Part 2 of my exclusive research series for Occupy.com

Part 1: Exposing the Transnational Capitalist Class

The Global Power Project, an investigative series produced by Occupy.com, aims to identify and connect the worldwide institutions and individuals who comprise today’s global power oligarchy. In Part 1, which appeared last week, I provided an overview examining who and what constitute the global ruling elite – often referred to as the Transnational Capitalist Class (TCC). In this second part, I will attempt to identify some of the key, dominant institutions that have facilitated and have in turn been supported by the development of this oligarchic class. This is not a study of wealth, but a study of power.

In an article for the journal International Sociology, William K. Carroll and Jean Philippe Sapinski examined the relationship between the corporate elite and the emergence of a “transnational policy-planning network,” beginning with its formation in the decades following World War II and speeding up in the 1970s with the creation of “global policy groups” and think tanks such as the World Economic Forum, in 1971, and the Trilateral Commission, in 1973, among many others.

The function of such institutions was to help mobilize and integrate the corporate elite beyond national borders, constructing a politically “organized minority.” These policy-planning organizations came to exist as “venues for discussion, strategic planning, discourse production and consensus formation on specific issues,” as well as “places where responses to crises of legitimacy are crafted,” such as managing economic, political, or environmental crises where elite interests might be threatened. These groups also often acted as “advocates for specific projects of integration, often on a regional basis.” Perhaps most importantly, the organizations “provide bridges connecting business elites to political actors (heads of states, politicians, high-ranking public servants) and elites and organic intellectuals in other fields (international organizations, military, media, academia).”

One important industry association, according to researchers Carroll and Carson in the journal Global Networks (Vol. 3, No. 1, 2003), is the International Chamber of Commerce. Launched by investment bankers in 1919, immediately following WWI, the Paris-based Chamber groups roughly 7,000 member corporations together across 130 countries, adhering to largely conservative, “free market” ideology. The “primary function” of the ICC, write Carroll and Carson, “is to institutionalize an international business perspective by providing a forum where capitalists and related professionals… can assemble and forge a common international policy framework.”

Another policy group with outsized global influence is the Bilderberg group, founded between 1952 and 1954, which provided “a context for more comprehensive international capitalist coordination and planning.” Bringing together roughly 130 elites from Western Europe and North America at annual closed meetings, “Bilderberg conferences have furnished a confidential platform for corporate, political, intellectual, military and even trade-union elites from the North Atlantic heartland to reach mutual understanding.”

As Valerie Aubourg examined in an article for the journal Intelligence and National Security (Vol. 18, No. 2, 2003), the Bilderberg meetings were organized largely at the initiative of a handful of European elites, with heavy financial backing from select American institutions including the Rockefeller Foundation, the Ford Foundation and the CIA. The meetings incorporate leadership from the most prominent national think tanks, such as the Council on Foreign Relations, Brookings Institution, Carnegie Endowment and others from across the North Atlantic ‘community.’

Hugh Wilford, writing in the journal Diplomacy & Statecraft (Vol. 14, No. 3, 2003), identified major philanthropic foundations such as the Rockefeller, Ford, and Carnegie foundations as not only major sources of funding but also providers for much of the leadership of the Bilderberg meetings, which saw the participation of major industrial and financial firms in line with those foundations (David Rockefeller of Chase Manhattan is a good example). Bilderberg was a major force in helping to create the political, economic and strategic consensus behind constructing a common European market.

With the support of these major foundations and their leadership, the Bilderberg meetings became a powerful global tool of the elites, not only in creating the European Union but in designing the process of globalization itself. Will Hutton, a former Bilderberg member, once referred to the group as “the high priests of globalization,” and a former Bilderberg steering committee member, Denis Healey,once noted: “To say we were striving for a one-world government is exaggerated, but not wholly unfair…we felt that a single community throughout the world would be a good thing.”

The large industrial foundations have played a truly profound – and largely overlooked – role in the shaping of modern society. The ‘Robber Baron’ industrial fortunes of the late 19th century – those of Morgan, Rockefeller, Carnegie, Harriman, Vanderbilt, etc. – sought to shape a new order in which they would maintain a dominant influence throughout society. They founded major American universities (often named after themselves) such as Vanderbilt, or the University of Chicago which was founded by John D. Rockefeller.

It was through their institutions that they sought to produce new elites to manage a new society, atop of which they sat. These universities became the harbingers of modern social sciences, seeking to “reform” society to fit the needs of those who dominated it; to engage in social engineering with the purpose of social control. It was in this context that the Carnegie Corporation, the Rockefeller Foundation, and later the Ford Foundation and others were founded: as engines of social engineering. One of their principal aims was to shape the development of the social sciences – and their exportation around the world to other industrial and imperial powers like Great Britain, and beyond. The social sciences were to facilitate the “scientific management” of society, and the foundations were the patrons of “social control.”

The Rockefeller, Carnegie and Ford foundations were instrumental in providing funding, organization and personnel for the development of major American and international think tanks such as the Council on Foreign Relations, which became essential to the emergence of a dominant and entrenched U.S. business class linking academia, political, strategic, corporate and financial elites. The Rockefeller and Ford foundations in particular constructed the field of modern political science and “Area Studies” with a view to educating a class of people who would be prepared to help manage a global empire.

They were also prominent in developing the educational system for black Americans designed to keep them relegated to labor and “vocational” training. They helped found many prominent universities in Africa, Asia and Latin America to train indigenous elites with a “Western” education in the social sciences, to ensure continuity between a domestic and international elite, between core and periphery, empire and protectorate.

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Another major policy planning group is the Trilateral Commission, created out of the Bilderberg meetings as a separate transnational think tank and founded by Chase Manhattan CEO (and Chairman of the Council on Foreign Relations) David Rockefeller along with academic-turned-policymaker Zbigniew Brzezinski in 1973. The Trilateral Commission linked the elites from Western Europe, North America and Japan (hence “trilateral”), and it now also includes members from China, India and a range of other Pacific-East Asian countries.

Consisting of a membership of roughly 350 individuals from finance, corporations, media, think tanks, foundations, academia and political circles, the Trilateral Commission (TC) has been immensely influential as a forum facilitating the development and integration of a “transnational elite.” The aim of the TC was “to foster closer cooperation among these core industrialized areas of the world with shared leadership responsibilities in the wider international system.”

The most famous report issued by the Trilateral Commission in the mid-1970s suggested that due to the popular activism of the 1960s, there was a “crisis of democracy” that it defined as an “excess of democracy,” which needed to be reduced in order for “democracy to function effectively.” According to the Trilateral Commission, what was needed was increased “apathy and noninvolvement on the part of some individuals and groups” to counter the “crisis” being caused by “a highly educated, mobilized, and participant society.”

Moving elsewhere, the World Economic Forum, founded in 1971, convenes annually in Davos, Switzerland and was originally designed “to secure the patronage of the Commission of European Communities, as well as the encouragement of Europe’s industry associations” and “to discuss European strategy in an international marketplace.” The WEF has since expanded its membership and mandate, as Carroll and Carson noted, “organized around a highly elite core of transnational capitalists (the ‘Foundation Membership’) – which it currently limits to ‘1000 of the foremost global enterprises’.” The meetings include prominent individuals from the scientific community, academics, the media, NGOs and many other policy groups.

Another major policy planning group emerged in the mid-1990s with an increased focus on environmental issues, called the World Business Council for Sustainable Development (WBCSD), which “instantly became the pre-eminent business voice on the environment” with a 1997 membership of 123 top corporate executives, tasked with bringing the “voice” of big business to the process of international efforts to address environmental concerns (and thus, to secure their own interests).

Among other prominent think tanks and policy-planning boards helping to facilitate and integrate a transnational network of elites are many nation-based organizations, particularly in the United States, such as with the Council on Foreign Relations, the Brookings Institution and the Center for Strategic and International Studies (CSIS), among many others. The advisory boards to these organizations provide an important forum through which transnational elites may help to influence the policies of many separate nations, and most importantly, the world’s most powerful nation: the United States.

The Council on Foreign Relations, founded in 1921, refers to itself as “an independent, nonpartisan membership organization, think tank, and publisher,” with roughly 4,700 members. It is largely based in New York with affiliate offices in Washington D.C. and elsewhere. The CFR is, and has been, at the heart of the American foreign policy establishment, bringing together elites from academia, government, the media, intelligence, military, financial and corporate institutions.

The CFR worked in close cooperation with the U.S. government during World War II to design the post-War world over which America would reign supreme. The Council was active in establishing the “Grand Areas” of the American Empire, and in maintaining extensive influence over the foreign policy of the United States.

As Carroll and Carson noted, there is a prominent relationship between those individuals who sit on multiple corporate boards and those who sit on the boards of prominent national and transnational policy-planning groups, “suggesting a highly centralized corporate-policy network.”

Studying 622 corporate directors and 302 organizations (five of which were the major policy-planning groups: ICC, Bilderberg, Trilateral Commission, World Economic Forum and World Business Council for Sustainable Development), Carroll and Carson assessed this network of transnational elites with data leading up to 1996, and concluded: “The international network is primarily a configuration of national corporate networks, integrated for the most part through the affiliations of a few dozen individuals who either hold transnational corporate directorships or serve on two or more policy boards.”

Out of the sample of 622 individuals, they found roughly 105 individuals (94 “transnational corporate linkers” and 11 others “whose corporate affiliations are not transnational but who sit on multiple global policy boards”) making up “the most immediate structural contributions to transnational class formation.” At the “core” of this network were 17 corporate directors, primarily European and North American, largely linked by the transnational policy groups, with the Trilateral Commission as “the most centrally positioned.” This network, they noted, “is highly centralized in terms of the individuals and organizations that participate in it.”

In undertaking a follow-up study of data between 1996 and 2006, published in the journal International Sociology (Vol. 25, No. 4, 2010), Carroll and Sapinski expanded the number of policy-planning groups from five to 11, including the original five (ICC, Bilderberg, TC, WEF, and WBCSD), but adding to them the Council on Foreign Relations (through its International Advisory Board), the UN Global Compact (through its advisory board), the European Round Table of Industrialists (ERT), founded in 1983, the EU-Japan Business Round Table, the Transatlantic Business Dialogue, and the North American Competitiveness Council.

The results of their research found that among the corporate directors, “policy-board membership has shifted towards the transnationalists, who come to comprise a larger segment of the global corporate elite,” and that there was a growing group of elites “made up of individuals with one or more transnational policy-board affiliations.” As Carroll and Sapinski concluded:

“The corporate-policy network is highly centralized, at both the level of individuals and that of organizations. Its inner circle is a tightly interwoven ensemble of politically active business leaders; its organizational core includes the Trilateral Commission, the Bilderberg Conference, the European Round Table of Industrialists and the World Business Council for Sustainable Development, surrounded by other policy boards and by the directorates of leading industrial corporations and financial institutions based in capitalism’s core regions.”

Organizations like the European Round Table of Industrialists (ERT) are not think tanks, but rather, industry organizations (exclusively representing the interests and individuals of major corporations), wielding significant influence over political and social elites. As Bastiaan van Apeldoorn wrote in the journal New Political Economy (Vol. 5, No. 2, 2000), the ERT “developed into an elite platform for an emergent European transnational capitalist class from which it can formulate a common strategy and – on the basis of that strategy – seek to shape European socioeconomic governance through its privileged access to the European institutions.”

In 1983, the ERT was formed as an organization of 17 major European industrialists (which has since expanded to several dozen members), with the proclaimed objective being “to revitalize European industry and make it competitive again, and to speed up the process of unification of the European common market.” Wisse Dekker, former Chairman of the ERT, once stated: “I would consider the Round Table to be more than a lobby group as it helps to shape policies. The Round Table’s relationship with Brussels [the EU] is one of strong co-operation. It is a dialogue which often begins at a very early stage in the development of policies and directives.”

The ERT was a central institution in the re-launching of European integration from the 1980s onward, and as former European Commissioner (and former ERT member) Peter Sutherland stated, “one can argue that the whole completion of the internal market project was initiated not by governments but by the Round Table, and by members of it… And I think it played a fairly consistent role subsequently in dialoguing with the Commission on practical steps to implement market liberalization.” Sutherland also explained that the ERT and its members “have to be at the highest levels of companies and virtually all of them have unimpeded access to government leaders because of the position of their companies… So, by definition, each member of the ERT has access at the highest level to government.”

Other notable industry associations include the Canadian Council of Chief Executives (CCCE), formerly called the Business Council on National Issues (BCNI), a group comprised of Canada’s top 150 CEOs who were a major force for the promotion and implementation of the North American Free Trade Agreement (NAFTA). The CCCE remains one of the most influential “interest groups” in Canada.

In the United States there are prominent industry associations like the Business Council, the Business Roundtable, and the Financial Services Forum. The Business Council describes itself as “a voluntary association of business leaders whose members meet several times a year for the free exchange of ideas both among themselves and with thought leaders from many sectors.”

Likewise, the Business Roundtable describes itself as “an association of chief executive officers of leading U.S. companies with more than $7.3 trillion in annual revenues,” which believes that “businesses should play an active and effective role in the formation of public policy.”

Finally, the Financial Services Forum proclaims itself to be “a non-partisan financial and economic policy organization” which aims “to pursue policies that encourage savings and investment, promote an open and competitive global marketplace, and ensure the opportunity of people everywhere to participate fully and productively in the 21st-century global economy.”

These are among some of the many institutions which will be researched and examined in greater detail throughout the Global Power Project. In the next installment, I will be examining not only the societal and economic results of these dominant institutions of power, but the specific individuals — and in some cases family dynasties — that wield significant influence nationally and globally.

Andrew Gavin Marshall is an independent researcher and writer based in Montreal, Canada. He is Project Manager of The People’s Book Project, head of the Geopolitics Division of the Hampton Institute, Research Director for Occupy.com’s Global Power Project and host of a weekly podcast show at BoilingFrogsPost.

Engineering Empire: An Introduction to the Intellectuals and Institutions of American Imperialism

Engineering Empire: An Introduction to the Intellectuals and Institutions of American Imperialism

By: Andrew Gavin Marshall

Originally posted at The Hampton Institute

The following is my first original piece for The Hampton Institute, “a working class think tank,” at which I chair the Geopolitics Division. This essay is meant as an introduction to modern American geopolitics, and a reference piece for future research and published material through The Hampton Institute’s Geopolitics Division.

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Educating yourself about empire can be a challenging endeavor, especially since so much of the educational system is dedicated to avoiding the topic or justifying the actions of imperialism in the modern era. If one studies political science or economics, the subject might be discussed in a historical context, but rarely as a modern reality; media and government voices rarely speak on the subject, and even more rarely speak of it with direct and honest language. Instead, we exist in a society where institutions and individuals of power speak in coded language, using deceptive rhetoric with abstract meaning. We hear about ‘democracy’ and ‘freedom’ and ‘security,’ but so rarely about imperialism, domination, and exploitation.

The objective of this report is to provide an introduction to the institutional and social structure of American imperialism. The material is detailed, but should not be considered complete or even comprehensive; its purpose is to function as a resource or reference for those seeking to educate themselves about the modern imperial system. It’s not an analysis of state policies or the effects of those policies, but rather, it is an examination of the institutions and individuals who advocate and implement imperial policies. What is revealed is a highly integrated and interconnected network of institutions and individuals – the foreign policy establishment – consisting of academics (so-called “experts” and “policy-oriented intellectuals”) and prominent think tanks.

Think tanks bring together prominent academics, former top government officials, corporate executives, bankers, media representatives, foundation officials and other elites in an effort to establish consensus on issues of policy and strategy, to produce reports and recommendations for policy-makers, functioning as recruitment centers for those who are selected to key government positions where they have the ability to implement policies. Thus, think tanks function as the intellectual engines of empire: they establish consensus among elites, provide policy prescriptions, strategic recommendations, and the personnel required to implement imperial policies through government agencies.

Among the most prominent American and international think tanks are the Council on Foreign Relations (CFR), the Bilderberg meetings, the Trilateral Commission, the Center for Strategic and International Studies (CSIS), the Brookings Institution, the Carnegie Endowment for International Peace, and the Atlantic Council. These institutions tend to rely upon funding from major foundations (such as Rockefeller, Ford, Carnegie, etc.) as well as corporations and financial institutions, and even various government agencies. There is an extensive crossover in leadership and membership between these institutions, and between them and their funders.

Roughly focusing on the period from the early 1970s until today, what emerges from this research is a highly integrated network of foreign policy elites, with individuals like Henry Kissinger, Zbigniew Brzezinski, Brent Scowcroft, and Joseph Nye figuring prominently in sitting at the center of the American imperial establishment over the course of decades, with powerful corporate and financial patrons such as the Rockefeller family existing in the background of American power structures.

Meet the Engineers of Empire

Within the U.S. government, the National Security Council (NSC) functions as the main planning group, devising strategy and policies for the operation of American power in the world. The NSC coordinates multiple other government agencies, bringing together the secretaries of the State and Defense Departments, the CIA, NSA, Joint Chiefs of Staff, and various other government bodies, with meetings directed by the National Security Adviser, who is generally one of the president’s most trusted and influential advisers. In several administrations, the National Security Adviser became the most influential voice and policy-maker to do with foreign policy, such as during the Nixon administration (with Henry Kissinger) and the Carter administration (with Zbigniew Brzezinski).

While both of these individuals were top government officials in the 1970s, their influence has not declined in the decades since they held such positions. In fact, it could be argued that both of their influence (along with several other foreign policy elites) has increased with their time outside of government. In fact, in a January 2013 interview with The Hill, Brzezinski stated: “To be perfectly frank – and you may not believe me – I really wasn’t at all conscious of the fact that the defeat of the Carter administration [in 1980] somehow or another affected significantly my own standing… I just kept doing my thing minus the Office of the National Security Adviser in the White House.” [1]

David Rothkopf has written the official history of the National Security Council (NSC) in his book, Running the World: The Inside Story of the National Security Council and the Architects of American Power, published in 2005. Rothkopf writes from an insiders perspective, being a member of the Council on Foreign Relations, a visiting scholar at the Carnegie Endowment, he was Under Secretary of Commerce for International Trade Policy and Development in the Clinton administration, and is currently president and CEO of Garten Rothkopf, an international advisory firm, CEO of Foreign Policy magazine, previously CEO of Intellibridge Corporation, and was also a managing director at Kissinger Associates, an international advisory firm founded and run by Henry Kissinger. In his book on the NSC, Rothkopf noted that, “[e]very single national security advisor since Kissinger is, in fact, within two degrees of Kissinger,” referring to the fact that they have all “worked with him as aides, on his staff, or directly with him in some capacity,” or worked for someone in those categories (hence, within “two degrees”).[2]

For example, General Brent Scowcroft, who was National Security Advisor (NSA) under Presidents Ford and George H.W. Bush, was Kissinger’s Deputy National Security Advisor in the Nixon administration; Zbigniew Brzezinski, Carter’s NSA, served on the faculty of Harvard with Kissinger, also served with Kissinger on the President’s Foreign Intelligence Advisory Board during the Reagan administration, both of them are also members (and were at times, board members) of the Council on Foreign Relations, as well as members of the Trilateral Commission, and they are both currently trustees of the Center for Strategic and International Studies (CSIS). Other NSA’s with connections to Kissinger include: Richard Allen, NSA under Reagan, who worked for Kissinger in the Nixon administration; William P. Clark, NSA under Reagan, who worked for Kissinger’s former aide, Alexander Haig at the State Department; Robert McFarlane, also NSA under Reagan, worked with Kissinger in the Nixon administration; John Poindexter, also NSA for Reagan, was McFarlane’s deputy; Frank Carlucci, also NSA in the Reagan administration, worked for Kissinger in the Nixon administration; Colin Powell, NSA for Reagan (and Secretary of State for George W. Bush), worked for Carlucci as his deputy; Anthony Lake, Clinton’s NSA, worked directly for Kissinger; Samuel Berger, also NSA for Clinton, was Lake’s deputy; Condoleezza Rice, NSA for George W. Bush, worked on Scowcroft’s NSC staff; and Stephen Hadley also worked for Kissinger directly.[3]

The foreign policy establishment consists of the top officials of the key government agencies concerned with managing foreign policy (State Department, Pentagon, CIA, NSC), drawing upon officials from within the think tank community, where they become well acquainted with corporate and financial elites, and thus, become familiar with the interests of this group of people. Upon leaving high office, these officials often return to leadership positions within the think tank community, join corporate boards, and/or establish their own international advisory firms where they charge hefty fees to provide corporations and banks with strategic advice and use of their international political contacts (which they acquired through their time in office). Further, these individuals also regularly appear in the media to provide commentary on international affairs as ‘independent experts’ and are routinely recruited to serve as ‘outside’ advisors to presidents and other high-level officials.

No less significant in assessing influence within the foreign policy establishment is the relative proximity – and relationships – individuals have with deeply entrenched power structures, notably financial and corporate dynasties. Arguably, both Kissinger and Brzezinski are two of the most influential individuals within the foreign policy elite networks. Certainly of no detriment to their careers was the fact that both cultivated close working and personal relationships with what can be said to be America’s most powerful dynasty, the Rockefeller family.

Dynastic Influence on Foreign Policy

At first glance, this may appear to be a rather obscure addition to this report, but dynastic power in modern state-capitalist societies is largely overlooked, misunderstood, or denied altogether, much like the concept of ’empire’ itself. The lack of discourse on this subject – or the relegation of it to fringe ‘conspiratorial’ views – is not reason enough to ignore it. Far from assigning a conspiratorial or ‘omnipotent’ view of power to dynastic elements, it is important to place them within a social and institutional analysis, to understand the complexities and functions of dynastic influence within modern society.

Dynastic power relies upon a complex network of relationships and interactions between institutions, individuals, and ideologies. Through most of human history – in most places in the world – power was wielded by relatively few people, and often concentrated among dynastic family structures, whether ancient Egypt, imperial Rome, ancient China, the Ottoman Empire or the European monarchs spreading their empires across the globe. With the rise of state-capitalist society, dynastic power shifted from the overtly political to the financial and economic spheres. Today’s main dynasties are born of corporate or banking power, maintained through family lines and extended through family ties to individuals, institutions, and policy-makers. The Rockefellers are arguably the most influential dynasty in the United States, but comparable to the Rothschilds in France and the UK, the Wallenbergs in Sweden, the Agnellis in Italy, or the Desmarais family in Canada. These families are themselves connected through institutions such as the Bilderberg Group and the Trilateral Commission, among others. The power of a corporate-financial dynasty is not a given: it must be maintained, nurtured, and strengthened, otherwise it will be overcome or made obsolete.

The Rockefeller family has existed at the center of American power for over a century. Originating with the late 19th century ‘Robber Baron’ industrialists, the Rockefellers established an oil empire, and subsequently a banking empire. John D. Rockefeller, who had a personal fortune surpassing $1 billion in the first decade of the 20th century, also founded the University of Chicago, and through the creation and activities of the Rockefeller Foundation (founded in 1913), helped engineer higher education and the social sciences. The Rockefeller family – largely acting through various family foundations – were also pivotal in the founding and funding of several prominent think tanks, notably the Council on Foreign Relations, the Asia Society, Trilateral Commission, the Group of Thirty, and the Bilderberg Group, among many others.

The patriarch of the Rockefeller family today is David Rockefeller, now in his late 90s. To understand the influence wielded by unelected bankers and billionaires like Rockefeller, it would be useful to simply examine the positions he has held throughout his life. From 1969 until 1980, he was the chairman and CEO of Chase Manhattan Bank and from 1981 to 1999 he was the chairman of the International Advisory Committee of Chase Manhattan, at which time it merged with another big bank to become JPMorgan Chase, of Rockefeller served as a member of the International Advisory Council from 2000 to 2005. David Rockefeller was a founding member of the Bilderberg Group in 1954, at which he remains on the Steering Committee; he is the former chairman of Rockefeller Group, Inc. (from 1981-1995), Rockefeller Center Properties (1996-2001), and the Rockefeller Brothers Fund, at which he remains as an advisory trustee. He is chairman emeritus and life trustee of the Museum of Modern Art, and the founder of the David Rockefeller Fund and the International Executive Service Corps.

David Rockefeller was also the chairman of the Council on Foreign Relations from 1970 to 1985, of which he remains to this day as honorary chairman; is chairman emeritus of the board of trustees of the University of Chicago; honorary chairman, life trustee and chairman emeritus of the Rockefeller University Council, and is the former president of the Harvard Board of Overseers. He was co-founder of the Global Philanthropists Circle, is honorary chairman of the Committee Encouraging Corporate Philanthropy (CECP), and is an honorary director of the Peterson Institute for International Economics. David Rockefeller was also the co-founder (with Zbigniew Brzezinski) of the Trilateral Commission in 1973, where he served as North American Chairman until 1991, and has since remained as honorary chairman. He is also the founder and honorary chairman of the Americas Society and the Council of the Americas.

It should not come as a surprise, then, that upon David Rockefeller’s 90th birthday celebration (held at the Council on Foreign Relations) in 2005, then-president of the World Bank, James Wolfensohn delivered a speech in which he stated that, “the person who had perhaps the greatest influence on my life professionally in this country, and I’m very happy to say personally there afterwards, is David Rockefeller, who first met me at the Harvard Business School in 1957 or ’58.” He went on to explain that in the early 20th century United States, “as we looked at the world, a family, the Rockefeller family, decided that the issues were not just national for the United States, were not just related to the rich countries. And where, extraordinarily and amazingly, David’s grandfather set up the Rockefeller Foundation, the purpose of which was to take a global view.” Wolfensohn continued:

So the Rockefeller family, in this last 100 years, has contributed in a way that is quite extraordinary to the development in that period and has given ample focus to the issues of development with which I have been associated. In fact, 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 and in the whole issue of addressing the questions which, in some ways, are still before us today. And for that David, we’re deeply grateful to you and for your own contribution in carrying these forward in the way that you did. [4]

Wolfensohn of course would be in a position to know something about the influence of the Rockefeller family. Serving as president of the World Bank from 1995 to 2005, he has since founded his own private firm, Wolfensohn & Company, LLC., was been a longtime member of the Steering Committee of the Bilderberg Group, an honorary trustee of the Brookings Institution, a trustee of the Rockefeller Foundation, and is a member of the Council on Foreign Relations. Wolfensohn’s father, Hyman, was employed by James Armand de Rothschild of the Rothschild banking dynasty (after whom James was named), and taught the young Wolfensohn how to “cultivate mentors, friends and contacts of influence.”[5] In his autobiography of 2002, Memoirs, David Rockefeller himself wrote:

For more than a century ideological extremists at either end of the political spectrum have seized upon well-publicized incidents such as my encounter with Castro to attack the Rockefeller family for the inordinate influence they claim we wield over American political and economic institutions. Some even believe we are part of a secret cabal working against the best interests of the United States, characterizing my family and me as ‘internationalists’ and of conspiring with others around the world to build a more integrated global political and economic structure–one world, if you will. If that’s the charge, I stand guilty, and I am proud of it. [6]

In the United States, the Rockefeller family has maintained a network of influence through financial, corporate, educational, cultural, and political spheres. It serves as a logical extension of dynastic influence to cultivate relationships among the foreign policy elite of the U.S., notably the likes of Kissinger and Brzezinski.

Intellectuals, ‘Experts,’ and Imperialists Par Excellence: Kissinger and Brzezinski

Both Kissinger and Brzezinski served as professors at Harvard in the early 1950s, as well as both joining the Council on Foreign Relations around the same time, and both also attended meetings of the Bilderberg Group (two organizations which had Rockefellers in leadership positions). Kissinger was a director at the Rockefeller Brothers Fund from 1956 until 1958, and thereafter became an advisor to Nelson Rockefeller. Kissinger was even briefly brought into the Kennedy administration as an advisor to the State Department, while Brzezinski was an advisor to the Kennedy campaign, and was a member of President Johnson’s Policy Planning Council in the State Department from 1966 to 1968. When Nixon became president in 1969, Kissinger became his National Security Advisor, and eventually also took over the role of Secretary of State.

In 1966, prior to entering the Nixon administration, Henry Kissinger wrote an article for the journal Daedalus in which he proclaimed the modern era as “the age of the expert,” and went on to explain: “The expert has his constituency – those who have a vested interest in commonly held opinions; elaborating and defining its consensus at a high level has, after all, made him an expert.” [7] In other words, the “expert” serves entrenched and established power structures and elites (“those who have a vested interest in commonly held opinions”), and the role of such an expert is to define and elaborate the “consensus” of elite interests. Thus, experts, as Henry Kissinger defines them, serve established elites.

In 1970, Brzezinski wrote a highly influential book, Between Two Ages: America’s Role in the Technetronic Era, which attracted the interest of Chase Manhattan Chairman (and Chairman of the Council on Foreign Relations) David Rockefeller. The two men then worked together to create the Trilateral Commission, of which Kissinger became a member. Kissinger remained as National Security Advisor for President Ford, and when Jimmy Carter became President (after Brzezinski invited him into the Trilateral Commission), Brzezinski became his National Security Advisor, also bringing along dozens of other members of the Trilateral Commission into the administration’s cabinet.

In a study published in the journal Polity in 1982, researchers described what amounted to modern Machiavellis who “whisper in the ears of princes,” notably, prominent academic-turned policy-makers like Walt Rostow, Henry Kissinger, and Zbigniew Brzezinski. The researchers constructed a ‘survey’ in 1980 which was distributed to a sample of officials in the State Department, CIA, Department of Defense and the National Security Council (the four government agencies primarily tasked with managing foreign policy), designed to assess the views of those who implement foreign policy related to how they measure influence held by academics. They compared their results with a similar survey conducted in 1971, and found that in both surveys, academics such as George Kennan, Hans Morgenthau, Henry Kissinger, and Zbigniew Brzezinski were listed as among the members of the academic community who most influenced the thinking of those who took the survey. In the 1971 survey, George Kennan was listed as the most influential, followed by Hans Morgenthau, John K. Galbraith, Henry Kissinger, E.O. Reischauer and Zbigniew Brzezinski; in the 1980 survey, Henry Kissinger was listed as the most influential, followed by Hans Morgenthau, George Kennan, Zbigniew Brzezinski and Stanley Hoffmann. [8]

Of the fifteen most influential scholars in the 1980 survey, eleven received their highest degree from a major East Coast university, eight held a doctorate from Harvard, twelve were associated with major East Coast universities, while seven of them had previously taught at Harvard. More than half of the top fifteen scholars had previously held prominent government positions, eight were members of the Council on Foreign Relations, ten belonged to the American Academy of Arts and Sciences and eight belonged to the American Political Science Association. Influence tended to sway according to which of the four government agencies surveyed was being assessed, though for Kissinger, Morgenthau and Brzezinski, they “were equally influential with each of the agencies surveyed.” The two most influential academic journals cited by survey responses were Foreign Affairs (run by the Council on Foreign Relations), read by more than two-thirds of those who replied to the survey, and Foreign Policy, which was read by more than half of respondents. [9]

In a 1975 report by the Trilateral Commission on The Crisis of Democracy, co-authored by Samuel Huntington, a close associate and friend of Zbigniew Brzezinski, the role of intellectuals came into question, noting that with the plethora of social movements and protests that had emerged from the 1960s onwards, intellectuals were asserting their “disgust with the corruption, materialism, and inefficiency of democracy and with the subservience of democratic government to ‘monopoly capitalism’.” Thus, noted the report: “the advanced industrial societies have spawned a stratum of value-oriented intellectuals who often devote themselves to the derogation of leadership, the challenging of authority, and the unmasking and delegitimation of established institutions, their behavior contrasting with that of the also increasing numbers of technocratic policy-oriented intellectuals.”[10] In other words, intellectuals were increasingly failing to serve as “experts” (as Henry Kissinger defined it), and were increasingly challenging authority and institutionalized power structures instead of serving them, unlike “technocratic and policy-oriented intellectuals.”

The influence of “experts” and “technocratic policy-oriented intellectuals” like Kissinger and Brzezinski was not to dissipate going into the 1980s. Kissinger then joined the Center for Strategic and International Studies (CSIS), taught at Georgetown University, and in 1982, founded his own consulting firm, Kissinger Associates, co-founded and run with General Brent Scowcroft, who was the National Security Advisor for President Ford, after being Kissinger’s deputy in the Nixon administration. Scowcroft is also a member of the Council on Foreign Relations, the Trilateral Commission, CSIS, and The Atlantic Council of the United States, which also includes Kissinger and Brzezinski among its leadership boards. Scowcroft also founded his own international advisory firm, the Scowcroft Group, and also served as National Security Advisor to President George H.W. Bush.

Kissinger Associates, which included not only Henry Kissinger and Brent Scowcroft, but also Lawrence Eagleburger, Kissinger’s former aide in the Nixon administration, and Undersecretary of State for Political Affairs in the Reagan administration, and briefly as Deputy Secretary of State in the George H.W. Bush administration. These three men, who led Kissinger Associates in the 1980s, made a great deal of money advising some of the world’s leading corporations, including ITT, American Express, Coca-Cola, Volvo, Fiat, and Midland Bank, among others. Kissinger Associates charges corporate clients at least $200,000 for “offering geopolitical insight” and “advice,” utilizing “their close relationships with foreign governments and their extensive knowledge of foreign affairs.”[11]

While he was Chairman of Kissinger Associates, advising corporate clients, Henry Kissinger was also appointed to chair the National Bipartisan Commission on Central America by President Reagan from 1983 to 1985, commonly known as the Kissinger Commission, which provided the strategic framework for Reagan’s terror war on Central America. As Kissinger himself noted in 1983, “If we cannot manage Central America… it will be impossible to convince threatened nations in the Persian Gulf and in other places that we know how to manage the global equilibrium.” [12] In other words, if the United States could not control a small region south of its border, how can it be expected to run the world?

Between 1984 and 1990, Henry Kissinger was also appointed to Reagan’s (and subsequently Bush Sr.’s) Foreign Intelligence Advisory Board, an organization that provides “advice” to the President on intelligence issues, which Brzezinski joined between 1987 and 1989. Brzezinski also served as a member of Reagan’s Chemical Warfare Commission, and from 1987 to 1988, worked with Reagan’s U.S. National Security Council-Defense Department Commission on Integrated Long-Term Strategy, alongside Henry Kissinger. The Commission’s report, Discriminate Deterrence, issued in 1988, noted that the United States would have to establish new capabilities to deal with threats, particularly in the ‘Third World,’ noting that while conflicts in the ‘Third World’ “are obviously less threatening than any Soviet-American war would be,” they still “have had and will have an adverse cumulative effect on U.S. access to critical regions,” and if these effects cannot be managed, “it will gradually undermine America’s ability to defend its interest in the most vital regions, such as the Persian Gulf, the Mediterranean and the Western Pacific.”[13]

Over the following decade, the report noted, “the United States will need to be better prepared to deal with conflicts in the Third World” which would “require new kinds of planning.” If the United States could not effectively counter the threats to U.S. interests and allies, notably, “if the warfare is of low intensity and protracted, and if they use guerrilla forces, paramilitary terrorist organizations, or armed subversives,” or, in other words, revolutionary movements, then “we will surely lose the support of many Third World countries that want to believe the United States can protect its friends, not to mention its own interests.” Most ‘Third World’ conflicts are termed “low intensity conflict,” referring to “insurgencies, organized terrorism, [and] paramilitary crime,” and therefore the United States would need to take these conflicts more seriously, noting that within such circumstances, “the enemy” is essentially “omnipresent,” meaning that the enemy is the population itself, “and unlikely ever to surrender.”[14]

From Cold War to New World Order: ‘Containment’ to ‘Enlargement’

At the end of the Cold War, the American imperial community of intellectuals and think tanks engaged in a process that continues to the present day in attempting to outline a geostrategic vision for America’s domination of the world. The Cold War had previously provided the cover for the American extension of hegemony around the world, under the premise of ‘containing’ the Soviet Union and the spread of ‘Communism.’ With the end of the Cold War came the end of the ‘containment’ policy of foreign policy. It was the task of ‘experts’ and ‘policy-oriented intellectuals’ to assess the present circumstances of American power in the world and to construct new strategic concepts for the extension and preservation of that power.

In 1990, George H.W. Bush’s administration released the National Security Strategy of the United States in which the Cold War was officially acknowledged as little more than a rhetorical deception. The document referenced U.S. interventions in the Middle East, which were for decades justified on the basis of ‘containing’ the perceived threat of ‘communism’ and the Soviet Union. The report noted that, “even as East-West tensions diminish, American strategic concerns remain.” Threats to America’s “interests” in the region, such as “the security of Israel and moderate Arab states” – otherwise known as ruthless dictatorships – “as well as the free flow of oil – come from a variety of sources.” Citing previous military interventions in the region, the report stated that they “were in response to threats to U.S. interests that could not be laid at the Kremlin’s door.” In other words, all the rhetoric of protecting the world from communism and the Soviet Union was little more than deception. As the National Security Strategy noted: “The necessity to defend our interests will continue.” [15]

When Bush became president in 1989, he ordered his national security team – headed by Brent Scowcroft – to review national security policy. Bush and Scowcroft had long discussed – even before the Iraqi invasion of Kuwait – the notion that the U.S. will have to make its priority dealing with “Third World bullies” (a euphemism referring to U.S. puppet dictators who stop following orders). At the end of the Cold War, George Bush declared a ‘new world order,’ a term which was suggested to Bush by Brent Scowcroft during a discussion “about future foreign-policy crises.” [16]

Separate from the official National Security Strategy, the internal assessment of national security policy commissioned by Bush was partly leaked to and reported in the media in 1991. As the Los Angeles Times commented, the review dispensed with “sentimental nonsense about democracy.” [17] The New York Times quoted the review: “In cases where the U.S. confronts much weaker enemies, our challenge will be not simply to defeat them, but to defeat them decisively and rapidly… For small countries hostile to us, bleeding our forces in protracted or indecisive conflict or embarrassing us by inflicting damage on some conspicuous element of our forces may be victory enough, and could undercut political support for U.S. efforts against them.” [18] In other words, the capacity to justify and undertake large-scale wars and ground invasions had deteriorated substantially, so it would be necessary to “decisively and rapidly” destroy “much weaker enemies.”

Zbigniew Brzezinski was quite blunt in his assessment of the Cold War – of which he was a major strategic icon – when he wrote in a 1992 article for Foreign Affairs, the journal of the Council on Foreign Relations, that the U.S. strategic discourse of the Cold War as a battle between Communist totalitarianism and Western democracy was little more than rhetoric. In Brzezinski’s own words: “The policy of liberation was a strategic sham, designed to a significant degree for domestic political reasons… the policy was basically rhetorical, at most tactical.” [19] In other words, it was all a lie, carefully constructed to deceive the American population into accepting the actions of a powerful state in its attempts to dominate the world.

In 1992, the New York Times leaked a classified document compiled by top Pentagon officials (including Paul Wolfowitz and Dick Cheney) devising a strategy for America in the post-Cold War world. As the Times summarized, the Defense Policy Guidance document “asserts that America’s political and military mission in the post-cold-war era will be to ensure that no rival superpower is allowed to emerge in Western Europe, Asia or the territories of the former Soviet Union.” The document “makes the case for a world dominated by one superpower whose position can be perpetuated by constructive behavior and sufficient military might to deter any nation or group of nations from challenging American primacy.” [20]

In the Clinton administration, prominent “policy-oriented intellectuals” filled key foreign policy positions, notably Madeleine Albright, first as ambassador to the UN and then as Secretary of State, and Anthony Lake as National Security Advisor. Anthony Lake was a staffer in Kissinger’s National Security Council during the Nixon administration (though he resigned in protest following the ‘secret’ bombing of Cambodia). Lake was subsequently recruited into the Trilateral Commission, and was then appointed as policy planning director in Jimmy Carter’s State Department under Secretary of State (and Trilateral Commission/Council on Foreign Relations member) Cyrus Vance. Richard Holbrooke and Warren Christopher were also brought into the Trilateral Commission, then to the Carter administration, and resurfaced in the Clinton administration. Holbrooke and Lake had even been college roommates for a time. Madeleine Albright had studied at Columbia University under Zbigniew Brzezinski, who was her dissertation advisor. When Brzezinski became National Security Adviser in the Carter administration, he brought in Albright as a special assistant. [21]

Anthony Lake was responsible for outlining the ‘Clinton Doctrine,’ which he elucidated in a 1993 speech at Johns Hopkins University, where he stated: “The successor to a doctrine of containment must be a strategy of enlargement – enlargement of the world’s free community of market democracies.” This strategy “must combine our broad goals of fostering democracy and markets with our more traditional geostrategic interests,” noting that, “[o]ther American interests at times will require us to befriend and even defend non-democratic states for mutually beneficial reasons.” [22] In other words, nothing has changed, save the rhetoric: the interest of American power is in “enlarging” America’s economic and political domination of the world.

In 1997, Brzezinski published a book outlining his strategic vision for America’s role in the world, entitled The Grand Chessboard. He wrote that “the chief geopolitical prize” for America was ‘Eurasia,’ referring to the connected landmass of Asia and Europe: “how America ‘manages’ Eurasia is critical. Eurasia is the globe’s largest continent and is geopolitically axial. A power that dominates Eurasia would control two of the world’s three most advanced and economically productive regions. A mere glance at the map also suggests that control over Eurasia would almost automatically entail African subordination.”[23] The “twin interests” of the United States, wrote Brzezinski, were, “in the short-term preservation of its unique global power and in the long-run transformation of it into increasingly institutionalized global cooperation.” Brzezinski then wrote:

To put it in a terminology that hearkens back to the more brutal age of ancient empires, the three grand imperatives of imperial geostrategy are to prevent collusion and maintain security dependence among the vassals, to keep tributaries pliant and protected, and to keep the barbarians from coming together.[24]

The officials from the George H.W. Bush administration who drafted the 1992 Defense Policy Guidance report spent the Clinton years in neoconservative think tanks, such as the Project for the New American Century (PNAC). Essentially using the 1992 document as a blueprint, the PNAC published a report in 2000 entitled Rebuilding America’s Defenses: Strategy, Forces, and Resources for a New Century. In contrast to previous observations from strategists like Brzezinski and Scowcroft, the neocons were not opposed to implementing large-scale wars, declaring that, “the United States must retain sufficient forces able to rapidly deploy and win multiple simultaneous large-scale wars.” The report stated that there was a “need to retain sufficient combat forces to fight and win, multiple, nearly simultaneous major theatre wars” and that “the Pentagon needs to begin to calculate the force necessary to protect, independently, US interests in Europe, East Asia and the Gulf at all times.”[25]

Drafted by many of the neocons who would later lead the United States into the Iraq war (including Paul Wolfowitz), the report recommended that the United States establish a strong military presence in the Middle East: “the United States has for decades sought to play a more permanent role in Gulf regional security. While the unresolved conflict with Iraq provides the immediate justification, the need for a substantial American force presence in the Gulf transcends the issue of the regime of Saddam Hussein.”[26]

When the Bush administration came to power in 2001, it brought in a host of neoconservatives to key foreign policy positions, including Paul Wolfowitz, Donald Rumsfeld and Dick Cheney. As one study noted, “among the 24 Bush appointees who have been most closely identified as neocons or as close to them, there are 27 links with conservative think tanks, 19 with their liberal counterparts and 20 with ‘neocon’ think tanks,” as well as 11 connections with the Council on Foreign Relations.[27]

The 2002 U.S. National Security Strategy announced by the Bush administration, thereafter referred to as the “Bush doctrine,” which included the usual rhetoric about democracy and freedom, and then established the principle of “preemptive war” and unilateral intervention for America’s War of Terror, noting: “the United States will, if necessary, act preemptively. The United States will not use force in all cases to preempt emerging threats, nor should nations use preemption as a pretext for aggression. Yet in an age where the enemies of civilization openly and actively seek the world’s most destructive technologies, the United States cannot remain idle while dangers gather.”[28] The doctrine announced that the U.S. “will constantly strive to enlist the support of the international community, [but] we will not hesitate to act alone, if necessary, to exercise our right of self-defense by acting preemptively against terrorists.”[29]

A fusion of neoconservative and traditional liberal internationalist “policy-oriented intellectuals” was facilitated in 2006 with the release of a report by the Princeton Project on National Security (PPNS), Forging a World of Liberty Under Law: U.S. National Security in the 21st Century, co-directed by G. John Ikenberry and Anne-Marie Slaughter. Ikenberry was a professor at Princeton and the Woodrow Wilson School of Public and International Affairs. He had previously served in the State Department Policy Planning staff in the administration of George H.W. Bush, was a senior associate at the Carnegie Endowment for International Peace, a senior fellow at the Brookings Institution, and a member of the Council on Foreign Relations. Anne-Marie Slaughter was Dean of the Woodrow Wilson School of Public and International Affairs, has served on the board of the Council on Foreign Relations, the New America Foundation, the National Endowment for Democracy, New American Security, the Truman Project, and the Center for Strategic and International Studies (CSIS), and has also served on the boards of McDonald’s and Citigroup, as well as often being a State Department adviser.

While the Bush administration and the neoconservatives within it had articulated a single vision of a ‘global war on terror,’ the objective of the Princeton Project’s report was to encourage the strategic acknowledgement of multiple, conflicting and complex threats to American power. Essentially, it was a project formed by prominent intellectual elites in reaction to the myopic and dangerous vision and actions projected by the Bush administration; a way to re-align strategic objectives based upon a more coherent analysis and articulation of the interests of power. One of its main critiques was against the notion of “unilateralism” advocated in the Bush Doctrine and enacted with the Iraq War. The aim of the report, in its own words, was to “set forth agreed premises or foundational principles to guide the development of specific national security strategies by successive administrations in coming decades.”[30]

The Honourary Co-Chairs of the Project report were Anthony Lake, Clinton’s former National Security Adviser, and George P. Shultz, former U.S. Secretary of Labor and Secretary of the Treasury in the Nixon administration, U.S. Secretary of State in the Reagan administration, president of Bechtel Corporation, and was on the International Advisory Council of JP Morgan Chase, a director of the Peterson Institute for International Economics, a member of the Hoover Institution, the Washington Institute for Near East Policy, and was on the boards of a number of corporations.

Among the co-sponsors of the project (apart from Princeton) were: the Brookings Institution, the Council on Foreign Relations, the Carnegie Endowment for International Peace, the Centre for International Governance Innovation, Oxford, Stanford, the German Marshall Fund, and the Hoover Institution, among others. Most financing for the Project came from the Woodrow Wilson School/Princeton, the Ford Foundation, and David M. Rubenstein, one of the world’s richest billionaires, co-founder of the global private equity firm the Carlyle Group, on the boards of Duke University, the Brookings Institution, the Council on Foreign Relations, President of the Economic Club of Washington, and the International Business Council of the World Economic Forum. [31]

Among the “experts” who participated in the Project were: Henry Kissinger, Zbigniew Brzezinski, Eliot Cohen, Francis Fukuyama, Leslie Gelb, Richard Haas, Robert Kagan, Jessica Tuchman Matthews, Joseph S. Nye, James Steinberg, and Strobe Talbott, among many others. Among the participating institutions were: Princeton, Harvard, Yale, CSIS, the Brookings Institution, Council on Foreign Relations, Carnegie Endowment, Federal Reserve Bank of New York, World Bank, the State Department, National Security Council, Citigroup, Ford Foundation, German Marshall Fund, Kissinger Associates, the Scowcroft Group, Cato Institute, Morgan Stanley, Carlyle Group. Among the participants in the Project were no less than 18 members of the Council on Foreign Relations, 10 members of the Brookings Institution, 6 members of the Carnegie Endowment for International Peace, and several representatives from foreign governments, including Canada, Australia, and Japan.[32]

The Road to “Hope” and “Change”

After leaving the Clinton administration, Madeleine Albright founded her own consulting firm in 2001, The Albright Group, since re-named the Albright Stonebridge Group, co-chaired by Albright and Clinton’s second National Security Adviser Samuel Berger, advising multinational corporations around the world. Albright is also chair of Albright Capital Management LLC, an investment firm which focuses on ’emerging markets.’ Albright is also on the board of directors of the Council on Foreign Relations, is a professor at Georgetown University School of Foreign Service, chairs the National Democratic Institute for International Affairs, the Pew Global Attitudes Project, and is president of the Truman Scholarship Foundation. She is also on the board of trustees of the Aspen Institute, a member of the Atlantic Council, and in 2009 was recruited by NATO Secretary-General Anders Fogh Rasmussen to chair the ‘group of experts’ tasked with drafting NATO’s New Strategic Concept for the world.

Kissinger, Scowcroft, and Albright are not the only prominent “former” statespersons to have established consulting firms for large multinational conglomerates, as the far less known Brzezinski Group is also a relevant player, “a consulting firm that provides strategic insight and advice to commercial and government clients,” headed by Zbig’s son, Ian Brzezinski. Ian is a Senior Fellow at the Atlantic Council and also sits on its Strategic Advisors Group, having previously served as a principal at Booz Allen Hamilton, a major global consulting firm. Prior to that, Ian Brzezinski was Deputy Assistant Secretary of Defense for Europe and NATO Policy in the Bush administration, from 2001 to 2005, and had previously served for many years on Capitol Hill as a senior staff member in the Senate. Zbigniew Brzezinski’s other son, Mark Brzezinski, is currently the U.S. Ambassador to Sweden, having previously been a corporate and securities associate at Hogan & Hartson LLP, after which he served in Bill Clinton’s National Security Council from 1999 to 2001. Mark Brzezinski was also an advisor to Barack Obama during his first presidential campaign starting in 2007. Among other notable advisors to Obama during his presidential campaign were Susan Rice, a former Clinton administration State Department official (and protégé to Madeleine Albright), as well as Clinton’s former National Security Advisor Anthony Lake. [33]

No less significant was the fact that Zbigniew Brzezinski himself was tapped as a foreign policy advisor to Obama during the presidential campaign. In August of 2007, Brzezinski publically endorsed Obama for president, stating that Obama “recognizes that the challenge is a new face, a new sense of direction, a new definition of America’s role in the world.” He added: “Obama is clearly more effective and has the upper hand. He has a sense of what is historically relevant and what is needed from the United States in relationship to the world.”[34] Brzezinski was quickly tapped as a top foreign policy advisor to Obama, who delivered a speech on Iraq in which he referred to Brzezinski as “one of our most outstanding thinkers.”[35] According to an Obama campaign spokesperson, Brzezinski was primarily brought on to advise Obama on matters related to Iraq. [36]

Thus, it would appear that Brzezinski may not have been exaggerating too much when he told the Congressional publication, The Hill, in January of 2013 that, “I really wasn’t at all conscious of the fact that the defeat of the Carter administration somehow or another affected significantly my own standing… I just kept doing my thing minus the Office of the National Security Adviser in the White House.” While Brzezinski had advised subsequent presidents Reagan and Bush Sr., and had close ties with key officials in the Clinton administration (notably his former student and NSC aide Madeleine Albright), he was “shut out of the George W. Bush White House” when it was dominated by the neoconservatives, whom he was heavily critical of, most especially in response to the Iraq War. [37]

In the first four years of the Obama administration, Brzezinski was much sought out for advice from Democrats and Republicans alike. On this, he stated: “It’s more a case of being asked than pounding on the doors… But if I have something to say, I know enough people that I can get in touch with to put [my thoughts] into circulation.” When Afghan President Hamid Karzai visited Washington, D.C. in early 2013, Brzezinski was invited to a special dinner hosted by the Afghan puppet leader, of which he noted: “I have a standard joke that I am on the No. 2 or No. 3 must-visit list in this city… That is to say, if a foreign minister or an ambassador or some other senior dignitary doesn’t get to see the President, the Secretary of State, the Secretary of Defense, the National Security Adviser, then I’m somewhere on that other list as a fallback.”[38]

Today, Zbigniew Brzezinski is no small player on the global scene. Not only is he an occasional and unofficial adviser to politicians, but he remains in some of the main centers of strategic planning and power in the United States. Brzezinski’s background is fairly well established, not least of all due to his role as National Security Adviser and his part in the creation of the Trilateral Commission with David Rockefeller in 1973. Brzezinski was also (and remains) a member of the Council on Foreign Relations, and was a director of the CFR from 1972 to 1977. Today, he is a member of the CFR with his son Mark Brzezinski and his daughter Mika Brzezinski, a media personality on CNBC. Brzezinski is a Counselor and Trustee of the Center for Strategic and International Studies (CSIS), and he is also co-Chair (with Carla A. Hills) of the Advisory Board of CSIS, composed of international and US business leaders and current and former government officials, including: Paul Desmarais Jr. (Power Corporation of Canada), Kenneth Duberstein (Duberstein Group), Dianne Feinstein (U.S. Senator), Timothy Keating (Boeing), Senator John McCain, Senator John D. Rockefeller IV, and top officials from Chevron, Procter & Gamble, Raytheon, Lockheed Martin, Exxon Mobil, Toyota, and United Technologies.[39]

And now we make our way to the Obama administration, the promised era of “hope” and “change;” or something like that. Under Obama, the two National Security Advisors thus far have been General James L. Jones and Tom Donilon. General Jones, who was Obama’s NSA from 2009 to 2010, previously and is now once again a trustee with the Center for Strategic and International Studies (CSIS). Just prior to becoming National Security Advisor, Jones was president and CEO of the U.S. Chamber of Commerce’s Institute for 21st Century Energy, after a career rising to 32nd commandant of the Marine Corps and commander of U.S. European Command. He was also on the boards of directors of Chevron and Boeing, resigning one month prior to taking up his post in the Obama administration.

Shortly after Jones first became National Security Advisor, he was speaking at a conference in February of 2009 at which he stated (with tongue-in-cheek), “As the most recent National Security Advisor of the United States, I take my daily orders from Dr. Kissinger, filtered down through General Brent Scowcroft and Sandy Berger… We have a chain of command in the National Security Council that exists today.”[40] Although said in jest, there is a certain truth to this notion. Yet, Jones only served in the Obama administration from January 2009 to October of 2010, after which he returned to more familiar pastures.

Apart from returning as a trustee to CSIS, Jones is currently the chairman of the Brent Scowcroft Center on International Security and is on the board and executive committee of the Atlantic Council (he was previously chairman of the board of directors from 2007 to 2009). Jones is also on the board of the East-West Institute, and in 2011 served on the board of directors of the military contractor, General Dynamics. General Jones is also the president of his own international consulting firm, Jones Group International. The Group’s website boasts “a unique and unrivaled experience with numerous foreign governments, advanced international relationships, and an understanding of the national security process to develop strategic plans to help clients succeed in challenging environments.” A testimonial of Jones’ skill was provided by Thomas Donohue, the president and CEO of the U.S. Chamber of Commerce: “Few leaders possess the wisdom, depth of experience, and knowledge of global and domestic economic and military affairs as General Jones.”[41]

Obama’s current NSA, Thomas E. Donilon, was previously deputy to General James Jones, and worked as former Assistant Secretary of State and chief of staff to Secretary of State Warren Christopher in Clinton’s administration. From 1999 to 2005, he was a lobbyist exclusively for the housing mortgage company Fannie Mae (which helped create and pop the housing bubble and destroy the economy). Donilon’s brother, Michael C. Donilon, is a counselor to Vice President Joseph Biden. Donilon’s wife, Cathy Russell, is chief of staff to Biden’s wife, Jill Biden. [42] Prior to joining the Obama administration, Thomas Donilon also served as a legal advisor to banks like Goldman Sachs and Citigroup. [43]

CSIS: The ‘Brain’ of the Obama Administration

While serving as national security advisor, Thomas Donilon spoke at the Center for Strategic and International Studies (CSIS) in November of 2012. He began his speech by stating that for roughly half a century, CSIS has been “the intellectual capital that has informed so many of our national security policies, including during the Obama administration… We’ve shared ideas and we’ve shared staff.”[44]

Indeed, CSIS has been an exceptionally influential presence within the Obama administration. CSIS launched a Commission on ‘Smart Power’ in 2006, co-chaired by Joseph S. Nye, Jr. and Richard Armitage, with the final report delivered in 2008, designed to influence the next president of the United States on implementing “a smart power strategy.” Joseph Nye is known for – among other things – developing the concept of what he calls “soft power” to describe gaining support through “attraction” rather than force. In the lead-up to the 2008 presidential elections, Nye stated that if Obama became president, it “would do more for America’s soft power around the world than anything else we could do.”[45]

Joseph Nye is the former Dean of the Kennedy School, former senior official in the Defense and State Departments, former Chair of the National Intelligence Council, and a highly influential political scientist who was rated in a 2008 poll of international relations scholars as “the most influential scholar in the field on American foreign policy,” and was also named as one of the top 100 global thinkers in a 2011 Foreign Policy report. Nye is also Chairman of the North American Group of the Trilateral Commission, is on the board of directors of the Council on Foreign Relations, a member of the board of trustees of the Center for Strategic and International Studies (CSIS), and a former director of the Institute for East-West Security Studies, the International Institute of Strategic Studies, and a former member of the advisory committee of the Institute of International Economics.

Richard Armitage, the other co-chair of the CSIS Commission on Smart Power, is the President of Armitage International, a global consulting firm, and was Deputy Secretary of State from 2001-2005 in the George W. Bush administration, Assistant Secretary of Defense for International Security Affairs in the Reagan administration, and is on the boards of ConocoPhillips, a major oil company, as well as ManTech International and Transcu Group, and of course, a trustee at CSIS.

In the Commission’s final report, A Smarter, More Secure America, the term ‘smart power’ was defined as “complementing U.S. military and economic might with greater investments in soft power,” recommending that the United States “reinvigorate the alliances, partnerships, and institutions that serve our interests,” as well as increasing the role of “development in U.S. foreign policy” which would allow the United States to “align its own interests with the aspirations of people around the world.” Another major area of concern was that of “[b]ringing foreign populations to our side,” which depended upon “building long-term, people-to-people relationships, particularly among youth.” Further, the report noted that “the benefits of free trade must be expanded” and that it was America’s responsibility to “establish global consensus and develop innovative solutions” for issues such as energy security and climate change. [46]

The forward to the report was authored by CSIS president and CEO, John Hamre, who wrote: “We have all seen the poll numbers and know that much of the world today is not happy with American leadership,” with even “traditional allies” beginning to question “American values and interests, wondering whether they are compatible with their own.” Hamre spoke for the American imperial establishment: “We do not have to be loved, but we will never be able to accomplish our goals and keep Americans safe without mutual respect.” What was needed, then, was to utilize their “moment of opportunity” in order “to strike off on a big idea that balances a wiser internationalism with the desire for protection at home.” In world affairs, the center of gravity, wrote Hamre, “is shifting to Asia.” Thus, “[a]s the only global superpower, we must manage multiple crises simultaneously while regional competitors can focus their attention and efforts.” What is required is to strengthen “capable states, alliances, partnerships, and institutions.” Military might, noted Hamre, while “typically the bedrock of a nation’s power,” remains “an inadequate basis for sustaining American power over time.”[47]

In their summary of the report, Nye and Armitage wrote that the ultimate “goal of U.S. foreign policy should be to prolong and preserve American preeminence as an agent for good.” The goal, of course, was to ‘prolong and preserve American preeminence,’ whereas the notion of being ‘an agent for good’ was little more than a rhetorical add-on, since for policy-oriented intellectuals like those at CSIS, American preeminence is inherently a ‘good’ thing, and therefore preserving American hegemony is – it is presumed – by definition, being ‘an agent for good.’ Nye and Armitage suggested that the U.S. “should have higher ambitions than being popular,” though acknowledging, “foreign opinion matters to U.S. decision-making,” so long as it aligns with U.S. decisions, presumably. A “good reputation,” they suggested, “brings acceptance for unpopular ventures.” This was not to mark a turn away from using military force, as was explicitly acknowledged: “We will always have our enemies, and we cannot abandon our coercive tools.” Using “soft power,” however, was simply to add to America’s arsenal of military and economic imperialism: “bolstering soft power makes America stronger.”[48]

Power, they wrote, “is the ability to influence the behavior of others to get a desired outcome,” noting the necessity of “hard power” – military and economic strength – but, while “[t]here is no other global power… American hard power does not always translate into influence.” While technological advances “have made weapons more precise, they have also become more destructive, thereby increasing the political and social costs of using military force.” Modern communications, they noted, “diminished the fog of war,” which is to say that they have facilitated more effective communication and management in war-time, “but also heightened the atomized political consciousness,” which is to say that it has allowed populations all over the world to gain access to information and communication outside the selectivity of traditional institutions of power.[49]

These trends “have made power less tangible and coercion less effective.” The report noted: “Machiavelli said it was safer to be feared than to be loved. Today, in the global information age, it is better to be both.” Thus, “soft power… is the ability to attract people to our side without coercion,” making “legitimacy” the central concept of soft power. As such, if nations and people believe “American objectives to be legitimate, we are more likely to persuade them to follow our lead without using threats and bribes.” Noting that America’s “enemies” in the world are largely non-state actors and groups who “control no territory, hold few assets, and sprout new leaders for each one that is killed,” victory becomes problematic: “Militaries are well suited to defeating states, but they are often poor instruments to fight ideas.” Thus, victory in the modern world “depends on attracting foreign populations to our side,” of which ‘soft power’ is a necessity. [50]

Despite various “military adventures in the Western hemisphere and in the Philippines” in the late nineteenth and early twentieth centuries, “the U.S. military has not been put in the service of building a colonial empire in the manner of European militaries,” the report read, acknowledging quite plainly that while not a formal colonial empire, the United States was an imperial power nonetheless. Since World War II, “America has sought to promote rules and order in a world in which life continues to be nasty, brutish, and short for the majority of inhabitants.” While “the appeal of Hollywood and American products can play a role in inspiring the dreams and desires of others,” soft power is not merely cultural, but also promotes “political values” and “our somewhat reluctant participation and leadership in institutions that help shape the global agenda.” However, a more “interconnected and tolerant world” is not something everyone is looking forward to, noted the authors: “ideas can be threatening to those who consider their way of life to be under siege by the West,” which is to say, the rest of the world. Smart power, then, “is neither hard nor soft – it is the skillful combination of both,” and “means developing an integrated strategy, resource base, and tool kit to achieve American objectives, drawing on both hard and soft power.” [51]

Other members of the CSIS Commission on Smart Power included: Nancy Kassebaum Baker, former US Senator and member of the advisory board of the Partnership for a Secure America; General Charles G. Boyd, former president and CEO of the Business Executives for National Security, former director of the Council on Foreign Relations (CFR); as well as Maurice Greenberg, Thomas Pickering, David Rubenstein and Obama’s newest Secretary of Defense, Chuck Hagel.

It’s quite apparent that members of the CSIS Commission and CSIS itself would be able to wield significant influence upon the Obama administration. Joseph Nye has even advised Hillary Clinton while she served as Secretary of State. [52] Perhaps then, we should not be surprised that at her Senate confirmation hearing in January of 2009, Clinton declared the era of “rigid ideology” in diplomacy to be at an end, and the foreign policy of “smart power” to be exercised, that she would make decisions based “on facts and evidence, not emotions or prejudice.”[53]

Before the Senate Foreign Relations Committee, Clinton declared: “We must use what has been called smart power, the full range of tools at our disposal – diplomatic, economic, military, political, legal, and cultural – picking the right tool, or combination of tools, for each situation.” She quoted the ancient Roman poet Terence, “in every endeavor, the seemly course for wise men is to try persuasion first,” then added: “The same truth binds wise women as well.”[54]

While Joseph Nye had coined the term “soft power” in the 1990s, Suzanne Nossel coined the term “smart power.” Nossel was the chief operating officer of Human Rights Watch, former executive at media conglomerate Bertelsmann, and was a former deputy to UN Ambassador Richard Holbrooke in the Clinton administration. She coined the term “smart power” in a 2004 issue of Foreign Affairs, the journal of the Council on Foreign Relations, after which time Joseph Nye began using it, leading to the CSIS Commission on Smart Power. At the Senate hearing, Senator Jim Webb stated, “the phrase of the week is ‘smart power’.” Nossel commented on Clinton’s Senate hearing: “Hillary was impressive… She didn’t gloss over the difficulties, but at the same time she was fundamentally optimistic. She’s saying that, by using all the tools of power in concert, the trajectory of American decline can be reversed. She’ll make smart power cool.”[55]

Following the first six months of the Obama administration, Hillary Clinton was to deliver a major foreign policy speech to the Council on Foreign Relations, where she would articulate “her own policy agenda,” focusing on the strengthening of “smart power.” One official involved in the speech planning process noted that it would include discussion on “U.S. relations with [and] management of the great powers in a way that gets more comprehensive.” The speech was long in the making, and was being overseen by the director of the State Department’s Policy Planning Council, Anne-Marie Slaughter. [56]

Slaughter was director of Policy Planning in the State Department from 2009 to 2011, where she was chief architect of the Quadrennial Diplomacy and Development Review, designed to better integrate development into U.S. foreign policy, with the first report having been released in 2010. She is also a professor of politics and international affairs at Princeton, was co-Chair of the Princeton Project on National Security, former Dean of the Woodrow Wilson School of Public and International Affairs, served on the boards of the Council on Foreign Relations (2003-2009), the New America Foundation, the National Endowment for Democracy, New American Security, the Truman Project, and formerly with CSIS, also having been on the boards of McDonald’s and Citigroup. Slaughter is currently a member of the Aspen Strategy Group, the CFR, a member of the board of directors of the Atlantic Council, and has been named on Foreign Policy‘s Top 100 Global Thinkers for the years 2009-2012.

In preparation for her speech at the Council on Foreign Relations, according to the Washington Post blog, Plum Line, Clinton “consulted” with a “surprisingly diverse” group of people, including: Henry Kissinger, George Schultz, Zbigniew Brzezinski, Paul Farmer, Joseph Nye, Francis Fukuyama, Brent Scowcroft, Strobe Talbott (president of the Brookings Institution), John Podesta, and Richard Lugar, as well as Defense Secretary Robert Gates, then-National Security Advisor General James Jones, and President Obama himself.[57]

When Clinton began speaking at the Council on Foreign Relations in Washington, D.C., she stated: “I am delighted to be here in these new headquarters. I have been often to, I guess, the mother ship in New York City, but it’s good to have an outpost of the Council right here down the street from the State Department. We get a lot of advice form the Council, and so this will mean I won’t have as far to go to be told what we should be doing and how we should think about the future.” Many in the world do not trust America to lead, explained Clinton, “they view America as an unaccountable power, too quick to impose its will at the expense of their interests and our principles,” but, Clinton was sure to note: “they are wrong.” The question, of course, was “not whether our nation can or should lead, but how it will lead in the 21st century,” in which “[r]igid ideologies and old formulas don’t apply.” Clinton claimed that “[l]iberty, democracy, justice and opportunity underlie our priorities,” even though others “accuse us of using these ideals to justify actions that contradict their very meaning,” suggesting that “we are too often condescending and imperialistic, seeking only to expand our power at the expense of others.”[58]

These perceptions, explained Clinton, “have fed anti-Americanism, but they do not reflect who we are.” America’s strategy “must reflect the world as it is, not as it used to be,” and therefore, “[i]t does not make sense to adapt a 19th century concert of powers, or a 20th century balance of power strategy.” Clinton explained that the strategy would seek to tilt “the balance away from a multi-polar world and toward a multi-partner world,” in which “our partnerships can become power coalitions to constrain and deter [the] negative actions” of those who do not share “our values and interests” and “actively seek to undermine our efforts.” In order to construct “the architecture of global cooperation,” Clinton recommended “smart power” as “the intelligent use of all means at our disposal, including our ability to convene and connect… our economic and military strength,” as well as “the application of old-fashioned common sense in policymaking… a blend of principle and pragmatism.” Noting that, “our global and regional institutions were built for a world that has been transformed,” Clinton stated that “they too must be transformed and reformed,” referencing the UN, World Bank, IMF, G20, OAS, ASEAN, and APEC, among others. This “global architecture of cooperation,” said Clinton, “is the architecture of progress for America and all nations.”[59]

Just in case you were thinking that the relationship between CSIS and the Obama administration was not strong enough, apparently both of them thought so too. CSIS wields notable influence within the Pentagon’s Defense Policy Board, which is chaired by the president and CEO of CSIS, John Hamre. A former Deputy Defense Secretary in the Clinton administration, Hamre is a member of the Aspen Strategy Group, sits on the board of defense contractors such as ITT, SAIC, and the Oshkosh Corporation, as well as MITRE, a “not-for-profit” corporation which “manages federally funded research and development centers.” The Defense Policy Board provides the Secretary of Defense, as well as the Deputy Secretary and Undersecretary of Defense “with independent, informed advice and opinion on matters of defense policy;” from outside ‘experts’ of course. [60]

Also on the board is Sam Nunn, the chairman of CSIS, co-chair and CEO of the Nuclear Threat Initiative (NTI), former U.S. Senator from 1972-1996, member of the Council on Foreign Relations, and currently on the boards of General Electric, the Coca-Cola Company, Hess Corporation, and was recently on the boards of Dell and Chevron. Other CSIS trustees and advisors who sit on the Defense Policy Board are Harold Brown, Henry Kissinger, James Schlesinger, Brent Scowcroft, General Jack Keane, and Chuck Hagel. [61]

Harold Brown was the Secretary of Defense in the Carter administration, honorary director of the Atlantic Council, member of the boards of Evergreen Oil and Philip Morris International, former partner at Warburg Pincus, director of the Altria Group, Trustee of RAND Corporation, and member of the Trilateral Commission and the Council on Foreign Relations. James Schlesinger was the former Defense Secretary in the Nixon and Ford administrations, Secretary of Energy in the Carter administration, was briefly director of the CIA, a senior advisor to Lehman Brothers, Kuhn, Loeb Inc., and was on George W. Bush’s Homeland Security Advisory Council. He is currently chairman of the MITRE Corporation, a director of the Sandia National Corporation, a trustee of the Atlantic Council and is a board member of the Henry M. Jackson Foundation.

Brent Scowcroft, apart from being Kissinger’s deputy in the Nixon administration, and the National Security Advisor in the Ford and Bush Sr. administrations (as well as co-founder of Kissinger), is currently a member of the Council on Foreign Relations, the Trilateral Commission, the Atlantic Council, and founded his own international advisory firm, the Scowcroft Group. General Jack Keane, a senior advisor to CSIS, is the former Vice Chief of Staff of the US Army, current Chairman of the board for the Institute for the Study of War; Frank Miller, former Defense Department official in the Reagan, Bush Sr., and Clinton administrations, served on the National Security Council in the George W. Bush administration, joined the Cohen Group in 2005, currently a Principal at the Scowcroft Group, and serves on the U.S.-European Command Advisory Group, is a member of the Council on Foreign Relations, a Director of the Atlantic Council, and he serves on the board of EADS-North America (one of the world’s leading defense contract corporations).

Kissinger’s record has been well-established up until present day, though he has been a member of the Defense Policy Board since 2001, thus serving in an advisory capacity to the Pentagon for both the Bush and Obama administrations, continues to serve on the steering committee of the Bilderberg meetings, is a member of the Trilateral Commission and he is currently an advisor to the board of directors of American Express, on the advisory board of the RAND Center for Global Risk and Security, honorary chairman of the China-United States Exchange Foundation, the board of the International Rescue Committee, and is on the International Council of JPMorgan Chase.

Another member of the Policy Board who was a trustee of CSIS was Chuck Hagel, who is now Obama’s Secretary of Defense. Prior to his new appointment, Hagel was a US Senator from 1997 to 2009, after which he was Chairman of the Atlantic Council, on the boards of Chevron, Zurich’s Holding Company of America, Corsair Capital, Deutsche Bank America, MIC Industries, was an advisor to Gallup, member of the board of PBS, member of the Council on Foreign Relations, and was a member of the CSIS Commission on Smart Power. Hagel also served on Obama’s Foreign Intelligence Advisory Board, an outside group of ‘experts’ providing strategic advice to the president on intelligence matters.

Other members of the Defense Policy Board (who are not affiliated with CSIS) are: J.D. Crouch, Deputy National Security Advisor in the George W. Bush administration, and is on the board of advisors of the Center for Security Policy; Richard Danzig, Secretary of the Navy in the Clinton administration, a campaign advisor to Obama, and is the current Chairman of the Center for a New American Security; Rudy de Leon, former Defense Department official in the Clinton administration, a Senior Vice President at the Center for American Progress, and is a former vice president at Boeing Corporation; John Nagl, president of the Center for a New American Security, and is a member of the Council on Foreign Relations; William Perry, former Secretary of Defense in the Clinton administration, who now sits on a number of corporate boards, a senior fellow at the Hoover Institution, on the board of the Nuclear Threat Initiative (NTI), and has served on the Carnegie Endowment; Sarah Sewall, former Deputy Assistant Secretary of Defense for Peacekeeping and Humanitarian Assistance in the Clinton administration, on the board of Oxfam America, and was a foreign policy advisor to Obama’s election campaign; and Larry Welch, former Chief of Staff of the US Air Force in the Reagan administration. More recently added to the Defense Policy Board was none other than Madeleine Albright.

Imperialism without Imperialists?

The ‘discourse’ of foreign affairs and international relations failing to adequately deal with the subject of empire is based upon a deeply flawed perception: that one cannot have an empire without imperialists, and the United States does not have imperialists, it has strategists, experts, and policy-oriented intellectuals. Does the United States, then, have an empire without imperialists? In the whole history of imperialism, that would be a unique situation.

Empires do not happen by chance. Nations do not simply trip and stumble and fall into a state of imperialism. Empires are planned and directed, maintained and expanded. This report aimed to provide some introductory insight into the institutions and individuals who direct the American imperial system. The information – while dense – is far from comprehensive or complete; it is a sample of the complex network of imperialism that exists in present-day United States. Regardless of which president or political party is in office, this highly integrated network remains in power.

This report, produced exclusively for the Hampton Institute, is to serve as a reference point for future discussion and analysis of ‘geopolitics’ and foreign policy issues. As an introduction to the institutions and individuals of empire, it can provide a framework for people to interpret foreign policy differently, to question those quoted and interviewed in the media as ‘experts,’ to integrate their understanding of think tanks into contemporary politics and society, and to bring to the surface the names, organizations and ideas of society’s ruling class.

It is time for more of what the Trilateral Commission dismissively referred to as “value-oriented intellectuals” – those who question and oppose authority – instead of more policy-oriented imperialists. The Geopolitics Division of the Hampton Institute aims to do just that: to provide an intellectual understanding and basis for opposing empire in the modern world.

Empires don’t just happen; they are constructed. They can also be deconstructed and dismantled, but that doesn’t just happen either. Opposing empire is not a passive act: it requires dedication and information, action and reaction. As relatively privileged individuals in western state-capitalist societies, we have both the opportunity and the responsibility to understand and oppose what our governments do abroad, how they treat the people of the world, how they engage with the world. It is our responsibility to do something, precisely because we have the opportunity to do so, unlike the majority of the world’s population who live in abject poverty, under ruthless dictators that we arm and maintain, in countries we bomb and regions we dominate. We exist in the epicenter of empire, and thus: we are the only ones capable of ending empire.

Andrew Gavin Marshall is an independent researcher and writer based in Montreal, Canada. He is Project Manager of The People’s Book Project, head of the Geopolitics Division of the Hampton Institute, Research Director for Occupy.com’s Global Power Project and hosts a weekly podcast show at BoilingFrogsPost.

Notes

[1] Julian Pecquet, “Brzezinski: Professor in the halls of power,” The Hill’s Global Affairs, 22 January 2013:

http://thehill.com/blogs/global-affairs/americas/278401-professor-in-the-halls-of-power

[2] David Rothkopf, Running the World: The Inside Story of the National Security Council and the Architects of American Power (Public Affairs, New York: 2005), page 19.

[3] David Rothkopf, Running the World: The Inside Story of the National Security Council and the Architects of American Power (Public Affairs, New York: 2005), pages 19-20.

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

[5] Michael Stutchbury, The man who inherited the Rothschild legend, The Australian, 30 October 2010: http://www.theaustralian.com.au/news/features/the-man-who-inherited-the-rothschild-legend/story-e6frg6z6-1225945329773

[6] David Rockefeller, Memoirs (Random House, New York: 2002), pages 404 – 405.

[7] Henry A. Kissinger, “Domestic Structure and Foreign Policy,” Daedalus (Vol. 95, No. 2, Conditions of World Order, Spring 1966), page 514.

[8] Sallie M. Hicks, Theodore A. Couloumbis and Eloise M. Forgette, “Influencing the Prince: A Role for Academicians?” Polity (Vol. 15, No. 2, Winter 1982), pages 288-289.

[9] Sallie M. Hicks, Theodore A. Couloumbis and Eloise M. Forgette, “Influencing the Prince: A Role for Academicians?” Polity (Vol. 15, No. 2, Winter 1982), pages 289-291.

[10] Michel J. Crozier, Samuel P. Huntington and Joji Watanuki, The Crisis of Democracy: Report on the Governability of Democracies to the Trilateral Commission (New York University Press, 1975), pages 6-7.

[11] Jeff Gerth and Sarah Bartlett, “Kissinger and Friends and Revolving Doors,” The New York Times, 30 April 1989:

http://www.nytimes.com/1989/04/30/us/kissinger-and-friends-and-revolving-doors.html?pagewanted=all&src=pm

[12] Edward Cuddy, “America’s Cuban Obsession: A Case Study in Diplomacy and Psycho-History,” The Americas (Vol. 43, No. 2, October 1986), page 192.

[13] Fred Iklé and Albert Wohlstetter, Discriminate Deterrence (Report of the Commission on Integrated Long-Term Strategy), January 1988, page 13.

[14] Fred Iklé and Albert Wohlstetter, Discriminate Deterrence (Report of the Commission on Integrated Long-Term Strategy), January 1988, page 14.

[15] National Security Strategy of the United States (The White House, March 1990), page 13.

[16] The Daily Beast, “This Will Not Stand,” Newsweek, 28 February 1991:

http://www.thedailybeast.com/newsweek/1991/02/28/this-will-not-stand.html

[17] George Black, “Forget Ideals; Just Give Us a Punching Bag: This time, fronting for oil princes, we couldn’t invoke the old defense of democracy; fighting ‘evil’ sufficed,” The Los Angeles Times, 3 March 1991:

http://articles.latimes.com/1991-03-03/opinion/op-338_1_cold-war

[18] Maureen Dowd, “WAR IN THE GULF: White House Memo; Bush Moves to Control War’s Endgame,” The New York Times, 23 February 1991:

http://www.nytimes.com/1991/02/23/world/war-in-the-gulf-white-house-memo-bush-moves-to-control-war-s-endgame.html?src=pm

[19] Zbigniew Brzezinski, “The Cold War and its Aftermath,” Foreign Affairs (Vol. 71, No. 4, Fall 1992), page 37.

[20] Tyler, Patrick E. U.S. Strategy Plan Calls for Insuring No Rivals Develop: A One Superpower World. The New York Times: March 8, 1992. http://work.colum.edu/~amiller/wolfowitz1992.htm

[21] David Rothkopf, Running the World: The Inside Story of the National Security Council and the Architects of American Power (Public Affairs, New York: 2005), pages 17-18, 162, 172-175.

[22] Anthony Lake, “From Containment to Enlargement,” Remarks of Anthony Lake at Johns Hopkins University School of Advanced International Studies, Washington, D.C., 21 September 1993:http://www.fas.org/news/usa/1993/usa-930921.htm

[23] Zbigniew Brzezinski, The Grand Chessboard: American Primacy and its Geostrategic Imperatives (Basic Books, 1997), pages 30-31.

[24] Zbigniew Brzezinski, The Grand Chessboard: American Primacy and its Geostrategic Imperatives (Basic Books, 1997), page 40.

[25] Rebuilding America’s Defenses (Project for the New American Century: September 2000), pages 6-8: http://www.newamericancentury.org/publicationsreports.htm

[26] Rebuilding America’s Defenses (Project for the New American Century: September 2000), page 25: http://www.newamericancentury.org/publicationsreports.htm

[27] Inderjeet Parmar, “Foreign Policy Fusion: Liberal interventionists, conservative nationalists and neoconservatives – the new alliance dominating the US foreign policy establishment,” International Politics (Vol. 46, No. 2/3, 2009), pages 178-179.

[28] U.S. NSS, “The National Security Strategy of the United States of America,” The White House, September 2002, page 15.

[29] U.S. NSS, “The National Security Strategy of the United States of America,” The White House, September 2002, page 6.

[30] Inderjeet Parmar, “Foreign Policy Fusion: Liberal Interventionists, Conservative Nationalists and Neoconservatives – the New alliance Dominating the US Foreign Policy Establishment,” International Politics (Vol. 46, No. 2/3, 2009), pages 181-183.

[31] G. John Ikenberry and Anne-Marie Slaughter, Forging a World of Liberty Under Law: U.S. National Security in the 21st Century – Final Report of the Princeton Project on National Security (The Princeton project on National Security, The Woodrow Wilson School of Public and International Affairs, Princeton University, 27 September 2006), pages 79-90.

[32] G. John Ikenberry and Anne-Marie Slaughter, Forging a World of Liberty Under Law: U.S. National Security in the 21st Century – Final Report of the Princeton Project on National Security (The Princeton project on National Security, The Woodrow Wilson School of Public and International Affairs, Princeton University, 27 September 2006), pages 79-90.

[33] The Daily Beast, “The Talent Primary,” Newsweek, 15 September 2007:

http://www.thedailybeast.com/newsweek/2007/09/15/the-talent-primary.html

[34] “Brzezinski Backs Obama,” The Washington Post, 25 August 2007:

http://www.washingtonpost.com/wp-dyn/content/article/2007/08/24/AR2007082402127.html

[35] Russell Berman, “Despite Criticism, Obama Stands By Adviser Brzezinski,” The New York Sun, 13 September 2007:

http://www.nysun.com/national/despite-criticism-obama-stands-by-adviser/62534/

[36] Eli Lake, “Obama Adviser Leads Delegation to Damascus,” The New York Sun, 12 February 2008:

http://www.nysun.com/foreign/obama-adviser-leads-delegation-to-damascus/71123/

[37] Julian Pecquet, “Brzezinski: Professor in the halls of power,” The Hill’s Global Affairs, 22 January 2013:

http://thehill.com/blogs/global-affairs/americas/278401-professor-in-the-halls-of-power

[38] Julian Pecquet, “Brzezinski: Professor in the halls of power,” The Hill’s Global Affairs, 22 January 2013:

http://thehill.com/blogs/global-affairs/americas/278401-professor-in-the-halls-of-power

[39] Annual Report 2011, Center for Strategic and International Studies, Strategic Insights and Bipartisan Policy Solutions, page 8.

[40] General James L. Jones, “Remarks by National Security Adviser Jones at 45th Munich Conference on Security Policy,” The Council on Foreign Relations, 8 February 2009:

http://www.cfr.org/defensehomeland-security/remarks-national-security-adviser-jones-45th-munich-conference-security-policy/p18515

[41] Company Profile, Jones Group International website, accessed 9 May 2013:

http://www.jonesgroupinternational.com/company_profile.php

[42] WhoRunsGov, “Thomas Donilon,” The Washington Post:

http://www.washingtonpost.com/politics/thomas-donilon/gIQAEZrv6O_topic.html

[43] Matthew Mosk, “Tom Donilon’s Revolving Door,” ABC News – The Blotter, 10 October 2010: http://abcnews.go.com/Blotter/national-security-advisor-tom-donilon/story?id=11836229#.UYsp6IJU1Ox

[44] Tom Donlinon, “Remarks by National Security Advisor Tom Donilon — As Prepared for Delivery,” White House Office of the Press Secretary, 15 November 2012:

http://www.whitehouse.gov/the-press-office/2012/11/15/remarks-national-security-advisor-tom-donilon-prepared-delivery

[45] James Traub, “Is (His) Biography (Our) Destiny?,” The New York Times, 4 November 2007: http://www.nytimes.com/2007/11/04/magazine/04obama-t.html?pagewanted=all

[46] Richard Armitage and Joseph Nye, Jr., “CSIS Commission on Smart Power: A Smarter, More Secure America,” Center for Strategic and International Studies, 2007: page 1.

[47] Richard Armitage and Joseph Nye, Jr., “CSIS Commission on Smart Power: A Smarter, More Secure America,” Center for Strategic and International Studies, 2007: pages 3-4.

[48] Richard Armitage and Joseph Nye, Jr., “CSIS Commission on Smart Power: A Smarter, More Secure America,” Center for Strategic and International Studies, 2007: pages 5-6.

[49] Richard Armitage and Joseph Nye, Jr., “CSIS Commission on Smart Power: A Smarter, More Secure America,” Center for Strategic and International Studies, 2007: page 6.

[50] Richard Armitage and Joseph Nye, Jr., “CSIS Commission on Smart Power: A Smarter, More Secure America,” Center for Strategic and International Studies, 2007: page 6.

[51] Richard Armitage and Joseph Nye, Jr., “CSIS Commission on Smart Power: A Smarter, More Secure America,” Center for Strategic and International Studies, 2007: page 7.

[52] Thanassis Cambanis, “Meet the new power players,” The Boston Globe, 4 September 2011:

http://www.boston.com/bostonglobe/ideas/articles/2011/09/04/meet_the_new_world_players/?page=full

[53] David Usborne, “Clinton announces dawn of ‘smart power’,” The Independent, 14 January 2009:

http://www.independent.co.uk/news/world/americas/clinton-announces-dawn-of-smart-power-1334256.html

[54] Hendrik Hetzberg, “Tool Kit: Smart Power,” The New Yorker, 26 January 2009:

http://www.newyorker.com/talk/2009/01/26/090126ta_talk_hertzberg

[55] Hendrik Hetzberg, “Tool Kit: Smart Power,” The New Yorker, 26 January 2009:

http://www.newyorker.com/talk/2009/01/26/090126ta_talk_hertzberg

[56] Ben Smith, “Hillary Clinton plans to reassert herself with high-profile speech,” Politico, 14 July 2009:

http://www.politico.com/news/stories/0709/24893.html

[57] Originally posted at Slum Line, “Hillary Consulted Republicans, Neocons, And Liberals For Big Foreign Policy Speech,” Future Majority, 14 July 2009:

http://www.futuremajority.com/node/8143

[58] Hillary Clinton, “Foreign Policy Address at the Council on Foreign Relations,” U.S. Department of State, 15 July 2009:

http://www.state.gov/secretary/rm/2009a/july/126071.htm

[59] Hillary Clinton, “Foreign Policy Address at the Council on Foreign Relations,” U.S. Department of State, 15 July 2009:

http://www.state.gov/secretary/rm/2009a/july/126071.htm

[60] Marcus Weisgerber, “U.S. Defense Policy Board Gets New Members,” Defense News, 4 October 2011:

http://www.defensenews.com/article/20111004/DEFSECT04/110040304/U-S-Defense-Policy-Board-Gets-New-Members

[61] Marcus Weisgerber, “U.S. Defense Policy Board Gets New Members,” Defense News, 4 October 2011:

http://www.defensenews.com/article/20111004/DEFSECT04/110040304/U-S-Defense-Policy-Board-Gets-New-Members

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

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

By: Andrew Gavin Marshall

Paul Desmarais Jr., leaving a Power Corporation shareholders meeting as students protest on May 15, 2012

 

From June 11-14, Montreal will be hosting the International Economic Forum of the Americas at the 2012 Conference of Montreal, which will bring roughly 150 speakers from the global elite to speak to an audience of other elites and sympathetic media spokespersons. This year’s conference will include as the keynote speaker, Alan Greenspan, former Chairman of the Federal Reserve System (the U.S. central bank), who was once considered for nearly 20 years to be “the most powerful banker in the world,” and as such, was largely responsible for causing the global financial crisis, along with the heads of the central banks of Portugal, Spain, France, Brazil, Mexico and Canada. There will be delegates from 24 countries around the world gathering at the Hilton Bonaventure Montreal Hotel to discuss the theme of “A Global Economy in Transition: New Strategies, New Partnerships” in front of roughly 3,000 participants. Along with formal discussions, “the Conference of Montreal will also enable the world’s various economic and political players present on this occasion to strengthen their relationships and develop new business opportunities.”

Here is the website in English: The Conference of Montreal

Here is the website in French: Conférence de Montréal

Here is a Facebook Event for a protest/manifestation at the Forum.

This conference will include key policy-makers and power-holders in Canada, North America, and around the world. It provides a forum through which the global elite may meet, talk, debate, shape consensus, and discuss policy-objectives of their respective nations and institutions. The ideology of those present is relentlessly pro-globalization, pro-Capitalist, and pro-power. The speakers are often advocates of neoliberalism, globalization, fiscal austerity, privatization, corporatization, imperialism and social control. This conference takes place in the midst of Quebec students standing up against educational austerity and protesting against policies which benefit the rich at the expense of the many. Will the ‘Maple Spring’ say hello to the global elite as they gather in Montréal?

The event, which is hosted by Power Corporation, owned by the billionaire Desmarais family, and a host of other corporate sponsors, receives 25% of its funding from public sources, including the Government of Canada and the Province of Québec, which alone contributes nearly $200,000 to a Conference hosted by billionaires. But remember, while public subsidies are available for billionaires to discuss how to make billions more, there is no money for education, social services, health care, or your future.

What is the Conference of Montreal / International Economic Forum of the Americas?

The stated “Mission” of the IEFA/Conference de Montréal is “to heighten knowledge and awareness of the major issues concerning economic globalization, with a particular emphasis on the relations between the Americas and other continents.” The Conference “strives to foster exchanges of information, to promote free discussion on major current economic issues and facilitate meetings between world leaders to encourage international discourse by bringing together Heads of State, the private sector, international organizations and civil society.” Among the stated “Objectives” are:

* To give its participants access to privileged information while fostering free and extensive discussions on various aspects of economy, with contributors and experts from among the best qualified;

* To promote relations between governments, international organizations, business people, members of the civil society, workers associations and universities;

* To allow its participants from various areas in the world to have business meetings during which they can develop their company or organization internationally

The International Economic Forum of the Americas/Conference of Montreal began in 1994 “at a time when the globalization of the economies was beginning to emerge at an increased rate” with the founding of the World Trade Organization (WTO), the end of the Cold War, development of NAFTA and other free-trade agreements, and thus, there was “the idea that Montreal could be the host city for an international yearly economic conference concerned with this phenomenon of the globalization of economies.” The first Conference took place in 1995.

The 18th annual conference of the International Economic Forum of the Americas will include “some of the most important international decision makers have already confirmed their attendance.” The focus of this year’s Forum will include: “the financial crisis and its impact on the world economy”; “International trade, and in particular the new Americas-European Union economic space, including the Canada-European Union trade agreement: this important trade agreement, which should be finalized in 2012” and will include “a number of executives from Canadian and European companies [who] will take the opportunity to meet at the 2012 Conference of Montreal to form new business ties for this new and important economic space”; and of course, “developing and extracting natural resources.” The full program can be reviewed here: Program 2012.

This year’s speakers list includes representatives and leaders from: the C.D. Howe Institute, the World Economic Forum, Bombardier Inc., Citibank, the European Commission, McKinsey & Company, Rio Tinto Alcan, the Canadian Chamber of Commerce, the U.S. Department of Homeland Security, the Rector of the University of Montreal, the President of the Canadian Bankers Association, the Governor of the Bank of Canada (a former Goldman Sachs executive), J.P. Morgan Chase, BNP Paribas, Governor of the Bank of Portugal, former Canadian Ambassador to Egypt, Power Corporation of Canada, Canadian Ambassador to the United States, President and CEO of the U.S. Chamber of Commerce, Royal Bank of Canada, Federal Reserve Bank of New York, the Conference Board of Canada, the World Bank, Scotiabank, PepsiCo, McGill University, Canadian Council of Chief Executives, Deutsche Bank, the Chairman of the Bank for International Settlements (the central bank to the world’s central banks and the most powerful financial institution in the world), the Brookings Institution, the Wall Street Journal, CNN, the World Policy Institute and the World Bank, among many others.

At the 2007 Conference of Montreal, Premier Jean Charest stated that, “Quebec is deeply committed to the process of globalization,” and that, “Quebec has built an economy open to the world which has allowed us to reach a very high standard of living because globalization has worked for us.” By “us” he means his friends and informal advisers at Power Corporation and the Forum. In his speech to the Conference, Charest stated that, “We believe very much in equality of opportunity.” Apparently, this is not the case for students.

The Founding Chairman of the International Economic Forum of the Americas is Gil Rémillard, Counsel for the law firm Fraser Milner Casgrain LLP, and between 1985 and 1994 he held several different positions in the Quebec government, including Minister of International Relations, Minister of Public Security, Minister of Justice, Attorney General, and the Minister of Intergovernmental Affairs.

The Chairman of the Board of Governors of the Forum is Paul Desmarais Jr., Co-CEO of Power Corporation of Canada alongside his brother André Desmarais, both sons of one of Canada’s richest billionaires, Paul Desmarais Sr, collectively making up Canada’s most powerful family. Paul Desmarais Jr. sits on a number of corporate boards, including: Power Corporation of Canada, Power Financial Corporation, Investors Group Inc., The Great-West Life Assurance Company, Great-West Lifeco Inc., London Insurance Group Inc. and London Life Insurance Company; in the United States: Great-West Life & Annuity Insurance Company; in Europe: Pargesa Holding S.A. (Switzerland) and Groupe Bruxelles Lambert S.A. (Belgium). He is a member of the Board of Directors of Gesca Ltd, Les Journaux Trans-Canada Inc. and La Presse Ltd in Canada; Suez and TotalFinaElf in France, among others.

Another member of the Board of Governors of the Forum is the wife of Paul Desmarais Jr., Hélène Desmarais, Chair of the Board of Directors of HEC Montréal (Canada’s leading business school), Chairman and Chief Executive Officer of the Montreal Enterprises and Innovation Centre (CEIM), Vice-President of the Board of Directors and member of the Executive Committee of the Board of Trade of Metropolitan Montreal (which praised the passing of Bill 78), and is a member of the Board of directors of The Montreal Economic Institute, a right-wing think tank which has been promoting more neoliberalism in Québec and blaming the student strike for the “financial cost” it has made to Québec; and she is a board member of the C.D. Howe Institute, one of Canada’s most influential think tanks.

Another member of the board of governors of the Forum is Heather Munroe-Blum, Principal and Vice Chancellor of McGill University, who is also a member of the Trilateral Commission and is on the board of directors of the Royal Bank of Canada (RBC). Other members include the presidents of the Chamber of Commerce of Canada and the Canadian Council of Chief Executives (CCCE), the CEO of Rio Tinto Alcan, a major mining company; the CEO of GDF Suez, a French electricity and gas company; the CEO of Hydro-Quebec; and the executives of the African Development Bank, the Asian Development Bank, UNESCO, the OECD, the World Trade Organization (WTO), the European Bank for Reconstruction and Development (EBRD), the Organization of American States (OAS), the Inter-American Development Bank (IDB), the International Energy Agency (IEA), as well as Louis Lévesque, Canada’s Deputy Minister of International Trade.

The Forum’s official ‘Partners’ include first and foremost, the Desmarais-owned Power Corporation of Canada, followed by the Royal Bank of Canada, Rio Tinto Alcan, Cisco, Total, GDF Suez, McKinsey & Company, SNC Lavalin, Hydro-Quebec, BNP Paribas, Bell, Citibank, Desjardins Group, the Government of Canada and the Government of Quebec, with media partners including the Financial Post and La Presse (owned by the Desmarais family).

The ‘Power’ Behind the Conference of Montreal

The Desmarais family is unquestionably Canada’s most powerful family. The Desmarais family, wrote Christa d’Souza for the London Telegraph, are “Canada’s equivalent of the Rockefellers or Vanderbilts.” Founded in 1925, Power Corporation of Canada is an investment company involved in communications, business, and especially finance. In the 1960s, the company began to invest in energy, finance, industry, and real estate. In 1968, financier Paul Desmarais took over the leadership of Power Corporation, and rapidly expanded the assets held by the company, including by the 1970s: Canada Steamship Lines (transportation); Consolidated Bathurst (pulp and paper); Investors Group, Great-West Life, Montreal Trust (financial services); and Gesca (communications). Power Corporation expanded across Canada, Europe, and into China. Paul Desmarais stepped aside as Chairman and CEO in 1996, though remaining as the controlling shareholder, and had his two sons, Paul Jr. and André, become Chairman and President and Co-CEOs. Power Corporation owns Gesca, a communications company which in turn owns La Presse as well as six other daily newspapers in Quebec.

Paul Desmarais Sr. is one of Canada’s richest individuals, which is, of course, no surprise, and as Konrad Yakabuski wrote for the Globe and Mail, “Desmarais has been personally consulted by prime ministers on every major federal economic and constitutional initiative since the 1970s. Most of the time, they’ve taken his advice.” Power Corporation has taken large stakes in major European companies such as Bertelsmann, Total and Suez. In the mid-1960s, a protégé of Desmarais was a young Montreal lawyer named Brian Mulroney, who would later become Canada’s Prime Minister. Paul Sr. groomed his sons, and especially André, who is now perhaps the most well-known Canadian businessman in China. André also married the daughter of another Canadian Prime Minister, Jean Chrétien. Desmarais Sr. also got involved in French banking through Paribas, and later, Pargesa, which handled investments in a wide range of European corporations, and shot Desmarais into the accepted ranks of French nobility and the old-monied European elite. Paul Desmarais Jr. is close friends with the recent French President Nicolas Sarkozy, and socializes with Spanish royalty, the Rothschilds, and other European oligarchs. The Desmarais family have strong connections to Canada’s four major political parties: the Liberals, Conservatives, Bloc Quebecois, and the NDP. This has included close ties to Lucien Bouchard, former leader of the Parti Québecois and Premier of Quebec; Jean Chrétien, former Canadian Prime Minister; Brian Mulroney, former Canadian Prime Minister who worked for Power Corporation; Bob Rae, an NDP leader; and Paul Martin, another Liberal Prime Minister who worked for Power Corporation. In the 1990s, the international advisory board of Power Corporation included former Prime Ministers Brian Mulroney and Pierre Trudeau. Brian Mulroney was sure to create friendly ties between the Desmarais family and soon-to-be Canadian Prime Minister Stephen Harper, who put two Desmarais-connected politicians in his cabinet, Peter Mackay and Maxime Bernier.

Quebec author Robin Philpot wrote a scathing critique of the power of the Desmarais family several years ago, suggesting that, “Over the last several years, [Paul Desmarais Sr.] has spun his web to such an extent that it now enables him to call the shots,” especially in promoting his right-wing economic vision, with “a disproportionate influence on politics and the economy in Quebec and Canada.” Of course, it’s not only Canadian politicians with whom Desmarais is close, but French and American politicians as well, including Sarkozy, George H.W. Bush, and Bill Clinton. Desmarais owns seven of the ten French-language newspapers in Quebec, and has been close to nearly every Quebec premier, apart from Parti Québécois leaders Jacques Parizeau and Bernard Landry. Philpot alleged that Desmarais “has a lot of influence on Premier Jean Charest,” who is the current premier imposing tuition increases. When Desmarais received the French Légion d’honneur (Legion of Honour) from Nicolas Sarkozy, Jean Charest was in attendance, of which Philpot stated, “He took him along like a poodle.” Philpot added, “It’s a very unhealthy situation for a government to be indebted to a businessman that has his own interest at heart. They get their hands tied.”

Paul Desmarais Sr (left), Nicolas Sarkozy (middle), Québec Premier Jean Charest (right)

 

In rural Quebec, the Desmarais family has an estate the size of Manhattan, with a private golf course and pheasant shooting range, as well as a music pavilion where opera is performed. This is the home of Paul Desmarais Sr. Guests, such as former U.S. Presidents George H.W. Bush and Bill Clinton, come play golf on this vast estate, and are flown in on helicopters belonging either to Power Corporation or Desmarais personally. The Desmarais family has even had the internationally renowned Cirque du Soleil perform on their massive 15,000-acre estate. King Juan Carlos of Spain has even been a guest from time to time. André Desmarais is himself a member of the Trilateral Commission, founded by David Rockefeller, and is also on the International Advisory Board of David Rockefeller’s former bank, JP Morgan Chase, alongside other notables such as former British Prime Minister Tony Blair. Both brothers have regularly attended meetings of the Bilderberg Group, of which David Rockefeller is a top official (founded in 1954 as an elite think tank linking Western Europe and North America). A son of Paul Desmarais Jr., Paul Desmarais III, is a banker with Goldman Sachs. At times, the influence of the family is shyly acknowledged. As French President Sarkozy stated upon awarding Paul Desmarais Sr. with the French Legion of Honour, “If I am the president of France today, it is thanks in part to the advice, the friendship and the loyalty of Paul Desmarais.”

Here is a video documenting a party thrown for the wife of Paul Desmarais, Sr., including notable guests Quebec Premier Jean Charest and former U.S. President George H.W. Bush

 

Protesting Power: Students Protest Outside Shareholder Meeting of Power Corporation

On May 15, 2012, as Power Corporation (with total revenue of $7.2 billion) held its shareholder meeting announcing its first quarter earnings of $264 million, and its main subsidiary company, Power Financial, announced quarterly profits of $455 million, demonstrators met outside to ensure that Power was met with protest. The National Post reported that, “one of Canada’s wealthiest and most politically connected families has come under attack as the force and rhetoric of Quebec’s student protests move from the streets into corporate shareholder meetings.”

Student protesters met by riot police outside of Power Corporation’s shareholders meeting on May 15, 2012

 

Riot police guarded the hotel’s main entrance as protesters chanted (in French): “We must fight the thieves in ties,” and “Your wealth is our poverty.” A student group had called for the demonstration, but Quebec Finance Minister Raymond Bachand commented, “There are radical groups that systematically want to destabilize the Montreal economy… They are anti-capitalists, Marxists.” As Paul Desmarais Jr. was announcing the company’s profits and stating, “we have a solid risk management strategy,” police on horseback outside were pushing the protestors back: “risk management.” A reporter asked Desmarais about “the protests that have shaken Quebec’s political class and caused millions worth of dollars in lost productivity,” to which he replied, “How could you not be concerned right now in terms of what’s going on?” He added:

Like all citizens, we are concerned. But we want this issue to be resolved hopefully in a respectful fashion. Let’s start with respect. With a democratic way. Within the rule of law. And that we come to an agreement that makes sense and where everybody invests in the future of our students. But everybody’s got to participate in that.

The two brothers, Paul Jr. and André, told reporters that, “they were being unfairly criticized as the company’s annual meeting became the latest target in the ongoing protests in Quebec.” Paul commented: “We’re a very caring company and I think a very caring family and we care about the society around us and we’ve always demonstrated that.” Police outside used pepper spray on protesters, one of whom commented, “I think Power Corp. is a very good example of the one per cent and it shows how private companies can be more powerful than some countries.” Desmarais would not directly answer when questioned about whether or not he supported Charest’s tuition hike, instead saying, “Frankly I’m not elected. Why should I meddle in things of people who are elected to resolve these problems. Our job is to manage our company.” The two brothers explained that, “they were reluctant to publicly comment on public issues except when they’re asked to by governments on financial issues.” That is to say, they will not publicly comment on the private advice they give to our politicians.

So the name is Power, and it fits. The Desmarais family spend their leisure time with King Juan Carlos of Spain (who recently had to apologize for going on an elephant hunting trip in Africa while 50% of youth in Spain are unemployed), they have had Cirque du Soleil perform on their family estate (larger than the island of Manhattan) with guests that include presidents and prime ministers, and have close business and even family ties to every Canadian Prime Minister since Pierre Trudeau, and almost every Quebec premier, especially the current “poodle” Jean Charest. They are billionaires who sit on the boards of the major Canadian and international think tanks which set policy for our nations. The International Economic Forum of the Americas / Conference of Montreal is simply another venue through which elites gather to form consensus and debate, discuss, and promote policies which benefit the few at the expense of the many. Their rhetoric is replete with talk of “democracy” and “fairness,” but their actions speak louder than their words, their bank accounts weigh more heavily than their hearts, and their ideas more easily become policy. The elite do not go and protest in the streets, demanding justice and equality, because they call up their friends, our politicians, who they have cocktails with in social gatherings, play golf with, travel with, intermarry with, and who grant their favoured politicians financially bountiful positions on corporate boards when they leave political life. They do not have to agitate in the streets to have their voices heard because they are the patrons of our politicians and policy-makers, they are the real constituents of our constitutional “democracies,” they are the captains of corporations, barons of business, and Kings of Capital.

So this year, let the real masters of our political, economic, and social world hear the voices of the real people. Let students and others peacefully assemble and protest outside the Hilton Bonaventure Hotel from June 11-14, and have the elites inside hear the people say that we know who they are, those who rule our nations and undermine our democratic ideals.

They are the bankers and corporate executives, the heads of our universities and owners of our media, our politicians and their advisers, the patrons and “intellectuals” of the think tanks that lobby governments and set policies, the heads of foundations and civil society monopolists. Most especially it is the bankers who sit atop a vast network of social, political, and economic institutions. The bankers are the modern monarchs of our globalized state-Capitalist society. In Canada, our country is dominated by the ‘big five’ banks: Royal Bank of Canada (RBC Group), Canadian Imperial Bank of Commerce (CIBC), Toronto-Dominion Bank (TD), the Bank of Montreal (BMO), and the Bank of Nova Scotia (Scotiabank).

Peter Kruyt is Chairman of the Board of Governors of Concordia University in Montreal, and is also Vice-President of Power Corporation. The Chancellor of Concordia University is L. Jacques Ménard, the President of BMO Financial Group, as well as being on the boards of a number of other corporations and schools. The rest of the board of governors of Concordia is dominated by bankers and business executives. The Principal and Vice-Chancellor of McGill University is Heather Munroe-Blum, who sits on the board of directors of the Royal Bank of Canada as well as the board of governors of the International Economic Forum of the Americas, as well as sitting on a number of other boards. The Chairman of McGill University is Stuart Cobbett, who also sits on the board of Citibank Canada. Another member of the board of governors of McGill University is Kathy Fazel, who is also an executive with the Royal Bank of Canada. Another member of McGill’s board is Daniel Gagnier, former Chief of Staff to Quebec Premier Jean Charest. Another board member is Samuel Minzberg, who sits on the board of HSBC Bank Canada. Clearly, bankers and business executives run our schools.

In 2008 and 2009, Canada’s banks received a “secret bailout” from the Bank of Canada (run by a former executive at Goldman Sachs) and the Federal Reserve of the United States (owned by JP Morgan Chase and all the other big U.S. banks). Canada’s banks are always said to be the “best in the world,” and a model to follow, since they magically weathered the financial crisis untouched. As it turns out, that was BS. Canada’s banks were bailed out to the tune of $114 BILLION. That amounts to $3,400 for every single Canadian man, woman, and child, or 7% of Canada’s 2009 GDP. So Quebec students want to maintain tuition costs at less than $2,500, and we are called “entitled brats.” But Canada’s big banks, which are making record-high profits, and getting record-low tax cuts, sitting on hundreds of billions of dollars in cash reserves, while their increased profits come from the increased debt of the Canadian population, and yet, they get the equivalent of $3,400 from each and every Canadian, which we then have to pay for through increased taxes and increased costs (such as tuition). But it’s the students who are “entitled.”

TD Bank told the Government of Quebec in 2007 to increase university tuition. In 2008, TD Bank got $26 billion in support from the Bank of Canada (meaning Canadians citizens have to pay for that through taxes… just to pay the interest on that debt!), and $8 billion from the U.S. Federal Reserve (which U.S. taxpayers have to pay for). In March of 2012, TD Bank and Royal Bank (Canada’s two biggest banks) announced record profits. That same month, it was announced that the average Canadian household debt was $103,000, making income security for Canadians an “elusive dream.” More than half of the jobs created since 2008 have gone to people aged 55 and over. Increases in hourly wages did not keep pace with inflation last year, and thus, income inequality is growing. Nearly two million Canadians have student loans totaling $20 billion, with the average student debt in Canada at $27,000 upon graduation. We are told that 70% of new jobs will require a university education. A four-year degree for a student in Canada costs an average of $55,000, expected to rise to $102,000 by 2030. This was reported by TD Bank, which then stated, “we argue that students have to recognize an investment in higher education is really a long-term one.” Things are much harder for students and youth today than for previous generations. Increasing tuition in Quebec could inflate an already over-inflated student debt bubble which could do for youth what the mortgage crisis did for housing, and would end of costing the government more in the end; thus, “there is no need for additional funding for Quebec universities.” Meanwhile, all the banks have inflated a massive housing bubble in Canada which itself could pop in the near-term future, recreating here what took place in the US in 2008.

So, who is really “entitled” here? Is it the students and youth, who are simply demanding a chance to have a future, to not be disciplined and chained down with debt before we even leave our home, get a degree, or have our first job? Or is it the banks, that control the economy, inflate bubbles that create crises, get bailed out by our governments (which we have to pay for), that tell our governments to increase tuition, that get tax cuts from our governments and sit on hundreds of billions of dollars in cash reserves, and who make record profits? These banks support and sponsor the International Economic Forum of the Americas, as does the Government of Quebec and the Government of Canada. So our governments have money to support a conference held by billionaires, bankers, and financiers… so that they can all get together once a year and talk about how “ineffectual” government support is, so that they can praise the “free market” while their “invisible hand” reaches into our pockets, as our politicians sit comfortably in theirs. They spew and steam about “handouts” to poor people, and then take $114 billion from the Canadian people, who are already deep in debt. These reverse-Robin Hoods take money from the poor and give it to themselves… and then charge us interest.

This system is simply too insane to consent to. Canada’s elites, like most elites, represent a class of parasites, living off and at the expense of the people, while their local and global connections to and profits from organized crime enshrine them as a type of ‘Mafiocracy’ ruling class.

Perhaps the Maficocracy should hear the voices of the Maple Spring.

From June 11-14, 2012, the International Economic Forum of the Americas gathers in Montreal, Quebec.

On June 11, at 8:30 a.m., the Maple Spring will say hello!

 

Let your voice be heard peacefully:

June 11-14

Hilton Bonaventure Hotel

900, de la Gauchetière W.

Montreal, Quebec

 

Peace and Solidarity!

 

For more information on the ‘Maple Spring’, see:

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

What Really Happened at the Montréal May Day Protest? From Peaceful Protest to Police Brutality

Ten Points Everyone Should Know About the Quebec Student Movement

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

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

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

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

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

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

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

By: Andrew Gavin Marshall

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

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

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

Part 5: Canada’s Economic Collapse and Social Crisis

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

There is a process under way in Canada, led by the corporate and financial elite, and directed against the general population, the poor, and the young, intending to provide for the rich and powerful, to punish the poor and steal from the rest, to plunge into poverty, to repress, control, and dominate: this process is called ‘Class War’ and it’s waged by the super-rich against the supposedly superfluous rest. It’s objective is simple: to preserve, protect, and expand the control and domination of the wealthy over the majority.

In Quebec, where the class warfare has taken on a specific assault on the students and youth, there are finally growing signs and actions that the youth are starting to fight back. The provincial government of Quebec – the French-speaking province of Canada – has decided to double the costs of tuition over the next few years. These moves have prompted hundreds of thousands of students across Quebec to go on strike in protest of the increased fees. Since Quebec currently has the lowest tuition costs in Canada for residents, a great deal of the media and commentary on the issue is related to lambasting Quebecers for their concept of “entitlements” and for “complaining” that they have to pay what others pay. The debate is focused around the ‘need’ for the government of Quebec to reduce its debt – balance its budget – framing increased tuition costs as a necessity to be accepted, and when resisted, to dismiss the protesters as unrealistic and petty.

So is it true that Quebec has the lowest tuition fees in Canada? Yes. However, Quebec residents also pay the highest income taxes in all of Canada.[1] One of the major claims by the Quebec government as to why tuition must be increased is the claim that Quebec’s universities are among the most “under-funded” in Canada, and therefore they need to increase their funding so as to increase their “competitiveness.” However, according to the Quebec government itself, total government spending on education (in 2008-2009) amounted to 1.94% of GDP, compared to 1.76% for Ontario, and 1.65% for Canada as a whole. At the same time, total university spending per student in Quebec was at $29,242, compared to $26,383 in Ontario, and $28,846 for Canada as a whole.[2] Thus, Québec’s universities are funded to a greater degree than the rest of Canada, so that argument does not hold weight.

Quebec’s universities are funded more than other Canadian universities, while Quebec residents pay more in taxes than the rest of Canada, so why the increase in tuition? As tuition fees for universities increase, government spending on education decreases. As the Canadian Federation of Students notes:

In the past fifteen years, tuition fees in Canada have grown to become the single largest expense for most university and college students. The dramatic tuition fee increases during this period were the direct result of cuts to public funding for post-secondary education by the federal government and, to a somewhat lesser extent, provincial governments. Public funding currently accounts for an average of approximately 57% of university and college operating funding, down from 84% just two decades ago. During the same period tuition fees have grown from 14% of operating funding to over 34%.[3]

This marks a move “away from a publicly funded model and towards a privatised user fee system,” which has caused “post-secondary education to become unaffordable for many low- and middle-income Canadians.” In the mid-1960s, nearly all of Canada’s university funding was provided by the federal and provincial governments, and tuition fees were either incredibly minimal or non-existent. This process began to change in the early 1980s, with the rise of neoliberalism in the global political economy, which saw moves toward cutting social spending by governments. As government funding decreased, tuition costs rose, and as a result, between the early 1980s and the early 1990s, tuition fees in Canada nearly doubled. In 1995, the Liberal federal government of Canada cut $7 billion in spending for the provinces, leading to “the largest tuition fee increases in Canadian history.” Quebec had, however, resisted the push toward making students pay more, which was taking place in all the other Canadian provinces. In the early 1990s, average undergraduate tuition fees in Canada were $1,464; today the average has more than tripled to $5,138.[4]

So why is this process taking place? Why must government spending on education (and other social programs) be reduced, while personal costs for all of these services be increased? The answer is not in “efficiency” or “balancing budgets,” but rather, in class warfare.

In April of 2007, TD Bank (one of Canada’s ‘big five’ banks which dominate the economy) released a “plan for prosperity” for the province of Quebec, which recommended, among other things, raising the cost of tuition: “by raising tuition fees but focusing on increased financial assistance for those in need, post secondary education (PSE) institutions will be better-positioned to prosper and provide world-class education and research.”[5] In one Canadian province, Nova Scotia, the government hired a former chief economist from the Bank of Montreal, Tim O’Neill, to assess higher education finances, and unsurprisingly, advocated higher tuition fees.[6] Banks, of course, have a major interest in promoting increased tuition costs, because they provide student loans and profit off of the interest on student debt, like some malevolent ever-growing succubus draining the life force and potential of future generations which are doomed to debt slavery. So naturally, our governments take the advice of the banks, because they know whom their real masters are.

It should be noted, as well, that this is not merely a problem in Quebec or Canada. Tens of thousands of students in the United Kingdom are planning a walk out in protest of increasing tuition fees, which “are pricing students out of education.”[7] The Occupy Movement in the United States is moving into universities, as campuses in California experienced demonstrations and protests against “state budget cuts to education and the resulting hikes in tuition.”[8] In Spain, more than 30,000 students took to the streets of Barcelona protesting the ‘austerity cuts’ to education, and were then of course met with state repression.[9] Perhaps most impressive is a mass student movement that has developed in Chile over the past year.

The College Crisis

What is the ‘college crisis’? It’s quite simple: our society is producing more educated, professionalized youths than ever before, who are then graduating into a jobless market, and what’s more, they are graduating with extensive debt. The professional education students receive, in combination with the heavy overbearing debt load and the immense dissatisfaction with the lack of opportunities for them, creates a large, mobile, educated, activated, and very pissed off group of people. This is what is referred to as a ‘poverty of expectations,’ whereby the inculcated expectations of a group or sector of society cannot be met by the society in which they live. In any society, in any period of history, this is a recipe for social unrest, resistance, rebellion, and, potentially, Revolution.

Naturally, the elites of any society fear such a scenario, so they always come up with various methods of managing these increasingly problematic conditions. The solutions, invariably, are always aimed at finding methods and means for undermining the ability and effectiveness of the target group to mobilize and organize for their cause; in this case, students. Cutting education budgets and increasing tuition fees is a very effective means to create more ‘desirable’ conditions for elites. How so? Any form of ‘austerity’ is essentially an act of class war, waged by the upper class against the rest. Austerity means that budgets will be cut and costs will be increased, whether through taxation, direct prices for services and necessities, or more often, both. The stated purpose of ‘austerity measures’ is to reduce debt (spending) and increase profitability (or revenue), with the purported aim of eliminating the debt over time. This is, however, not the true purpose of austerity, and appropriately so, it is never the result. The result is actually to increase debt, and impose a regimen of what amounts to ‘social genocide’: increasing the burden, costs, taxes, and hardships upon the wider population. For the poor, it means despair; for the middle class, it means poverty; and for the rich, it means prosperity and power.

The current crisis stems from developments that took place in the 1960s which saw an increase in activism and engagement among the general population, and especially the youth. Universities were breeding grounds for activism and movements which sought to create social uplift. The elite response to this scenario, in the United States specifically but also across the Western world as a whole, was to declare a “Crisis of Democracy” in which too many people were making too many demands upon the system, in which all forms of authority were under attack, and the legitimacy of those authorities were called into question. Elites of both the left and right saw this acceleration of democratic participation and activism as an assault upon their conception of what “democracy” should be – namely, a state that serves their interests alone. From the right, the U.S. Chamber of Commerce – and from the liberal internationalists, the Trilateral Commission – launched a major national and global attack upon the surge of democratic activism in what the Trilateral Commission referred to as an “excess of democracy.” The result of this attack: neoliberalism and debt. The two documents that were most influential in this attack on democracy were the “Powell Memo” of 1971 sent to the U.S. Chamber of Commerce which outlined a detailed program for how big business could reorganize society for its own interests, and the Trilateral Commission’s 1975 report, “The Crisis of Democracy,” which outlined an elite ideology which saw the problem of society being in an “excess of democracy” and that what is required is to correct the balance in favour of elites and increase apathy and passivity among the population. The Chamber of Commerce represents all the major business interests in the United States, while the Trilateral Commission (founded in 1973 by banker David Rockefeller), represents roughly 350 elites in the areas of academia, finance, business, government, foreign policy, media and foundations from North America, Western Europe, and Japan.

The result of this was to decrease government funding for education, increase tuition and other costs, increase debt for students and the general population as a whole (through credit cards, mortgages, loans, etc.), and to merge higher education and big business: the corporatization and privatization of universities.

As part of this process, knowledge was transformed into ‘capital’ – into ‘knowledge capitalism’ or a ‘knowledge economy.’ Reports from the World Bank and the Organization for Economic Cooperation and Development (OECD) in the 1990s transformed these ideas into a “policy template.” This was to establish “a new coalition between education and industry,” in which “education if reconfigured as a massively undervalued form of knowledge capital that will determine the future of work, the organization of knowledge institutions and the shape of society in the years to come.”[10]

Knowledge was thus defined as an “economic resource” which would give growth to the economy. As such, in the neoliberal era, where all aspects of economic productivity and growth are privatized (purportedly to increase their efficiency and productive capacity as only the “free market” can do), education – or the “knowledge economy” – itself, was destined to be privatized.[11]

Solving the ‘College Crisis’

In February of 2011, it was reported that the average debt for a Canadian family had reached over $100,000, spending 150% of their earnings. Thus, for every $1,000 in after-tax income, the average Canadian family then owes $1,500. The debt figures include mortgages, student loans, credit card debts, and lines of credit. In 1990, the average Canadian family was able to put roughly $8,000 into savings, in 2012, that number was at $2,500. So while the public is constantly told that the ‘recession’ is over, this is simply not true for the general population, though it may appear to be true in the quarterly reports of Canada’s multinational corporations and banks. A 2011 report indicated that, “17,400 households were behind in their mortgage payments by three or more months in 2010, up by 50 per cent since the recession began. Credit card delinquencies and bankruptcy rates also remain higher than before the recession.”[12]

By February of 2012, this rate of income-to-debt had not only failed to improve, but even got slightly worse, hitting a new record.[13] The state for Canadian families is indeed getting worse. More than half of the jobs created since the “end” of the “recession” went to those aged 55 and older, leaving the youth struggling to find jobs, while older workers have to either stay working longer, return from retirement because they can’t survive off of their pensions, and thus, young people are living at home longer and staying in school longer. The slight increases in hourly earnings has not kept up with inflation, and thus amounts to a loss of earnings, and income inequality continues to grow between the super-rich and everyone else.[14]

Mark Carney, Governor of the Bank of Canada (Canada’s central bank), is also Chairman of the Financial Stability Board, run out of the Bank for International Settlements (BIS) in Basel, Switzerland – the central bank to the world’s central banks – and which operates under the auspices of the G20. Carney had previously served as Deputy Governor of the Bank of Canada, the Canadian Department of Finance, and spent thirteen years with Goldman Sachs prior to that.

The Bank of Canada, like all central banks, serves the dominant elite interests of the nation, but also of the international financial elite more broadly. The board of directors of the Bank of Canada includes William Black, former CEO of Maritime Life, who sits on the boards of Dalhousie University, the Shaw Group, Standard Life of Canada, and Nova Scotia Business, Inc.; Philip Deck, CEO of Extuple, Inc. (a technology finance corporation), former managing partner with merchant banking company HSD Partners, and is on the board of a major Canadian think tank, the C.D. Howe Institute; Bonnie DuPont, former Vice President at Enbridge Inc., former director of the Canadian Wheat Board, a current director of agribusiness firm Viterra Inc, UTS, on the board of governors of the University of Calgary, member of the Institute of Corporate Directors, and is past president of the Calgary Petroleum Club; Jock Finlayson, Vice President of the Business Council of British Columbia, former Vice President of the Canadian Council of Chief Executives (an interest group made up of Canada’s top 150 CEOs), and a member of the Canada West Foundation; Daniel Johnson, a director of Bombardier, IGM Financial, Mackenzie Financial Corporation, Investors Group, and former Minister of Industry and Commerce in the Province of Quebec; David Laidley, Chairman Emeritus of Deloitte & Touche LLP, on the boards of Nautilus Indemnity Limited, ProSep Inc., EMCOR Group, Aviva Canada Inc., the Cole Foundation, and on several boards at McGill University. The rest of the directors of the Bank of Canada are almost exclusively businessmen or former government officials (two women in total), and all of them are white; so, naturally, they truly represent the struggling Canadian family.

In March of 2012, the Bank of Canada warned that household debt “remains the biggest domestic risk” to Canada’s economy. While part of the Bank’s role is to set interest rates, it has kept interest rates very low (at 1%) in order to encourage lending (and indeed, families have become more indebted as a result). Yet, the Bank says, interest rates will have to rise eventually. Economists at Canada’s major banks (CIBC, RBC, BMO, TD, and ScotiaBank) naturally support such an inevitability, as one BMO economist stated, “while rates are unlikely to increase in the near term, the next move is more likely to be up rather than down, and could well emerge sooner than we currently anticipate.” The chief economist at CIBC stated that, “markets will pick up on the slightly improved change in tone on the economy, and might move forward the implied date for the first rate hike.” This translates into: the economy is doing well for the big banks, therefore they will demand higher interest rates on debts, and plunge the Canadian population into poverty; the “invisible hand of the free market” in action.[15] Increased interest rates mean increased payments on debts, which means increased suffering for the indebted, who make up the general population.

As the Bank of Canada warns that interest rates will increase, perhaps as soon as this year, the Canadian people – heavily indebted – will suffer immensely and will likely fail to meet their interest payments. Since such a large majority of the debt and interest is in mortgages, this would potentially cause a major housing crisis, which is already at bubble proportions (especially in Vancouver, now the most expensive city to live in within North America), and will drag the middle class and the rest of the Canadian economy down with it. Even TD Bank has said the housing market is over-valued (i.e., artificially inflated), and warned of a coming “correction” (i.e., economic crisis).[16]

As the gap widens between the rich and everyone else in nearly every OECD (Organisation for Economic Cooperation and Development) country, Canada is no exception. The top 10% of Canadian earners make ten times as much as the bottom 10%. The top 1% in Canada saw their share of total income increase from 8.1% in 1980 to 13.3% in 2007, while the top 0.1% saw their share increase from 2% to 5.3%. Tax policies in Canada strengthen the wealth gap. In 1981, the tax rate for the top margin of earners was 43%, and in 2010, it was 29%. As the Secretary General of the OECD stated in December of 2011, “The social contract is starting to unravel in many countries… This study dispels the assumptions that the benefits of economic growth will automatically trickle down to the disadvantaged and that greater inequality fosters greater social mobility.” Thus, “inequality will continue to rise.”[17]

In a 2008 OECD study, Canada was singled out as one of the countries with the worst rates of widening inequality, stating that, “In the last 10 years, the rich have been getting richer, leaving both middle and poorer income classes behind.” The top 3.8% of Canadian households controlled 66.6% of all financial wealth by 2009, with rates set to increase. As the Conservative government in Canada continues to implement corporate tax cuts, this disparity will increase, with the Harper government providing $60 billion in corporate tax breaks, while maintaining a $30 billion budget deficit (public debt). Despite all the tax cuts for corporations, the money that is not spent on taxes tends to go to shareholders and very little goes toward investments or job creation, meaning that the benefits do not “trickle down,” but rather, as to be expected, trickle up. For Prime Minister Harper’s tax policies and programs, “The higher the income, the bigger the tax break.” The senior economist at the International Trade Union Confederation stated that, “The growing gap between the rich and the rest of us has many causes, including higher remuneration for top earners, much higher profits as a share of the economy, less bargaining power for workers, and less progressive taxes… Conservative tax policies will clearly aggravate the problem.”[18]

The Conference Board of Canada released a study in the fall of 2011 which stated that, “income inequality has been rising more rapidly in Canada than in the U.S. since the mid-1990s,” and on a global scale, “Canada has had the fourth-largest increase in income inequality among its peers.” The President of the Conference Board explained, “Even though the U.S. currently has the largest rich-poor income gap among these countries, the gap in Canada has been rising at a faster rate.”[19]

Among the OECD countries, the one with the highest rates of inequality was none other than the Petri-dish experiment of neoliberalism, Chile, followed by Israel, Italy, Portugal, the U.K., and the United States. While the top 10% of Canadian earners had an average income of $103,500, the bottom 10% had an average annual income of $10,260.[20]

While Canada is often hailed as the most promising nation to come out of the economic-financial crisis of 2008, since its banks were largely left out of the housing derivative market (and thus, were protected), the facts on the ground represent a different reality. As the Economist reported in 2010, of the 31 OECD nations, Canada ranked as the 22nd worst country in terms of child poverty, with one in ten Canadians (roughly 3 million) being poor, 610,000 of them being children. In November of 2010, it was reported that roughly 900,000 Canadians were dependent upon food handouts, a 9% increase from the previous year, with roughly 300,000 homeless people. The majority of the poor are single mothers, immigrants, aboriginal and disabled Canadians. Through the 1980s and 1990s (with the implementation of neolibral policies), welfare payments to these groups were slashed, with British Columbia as the most enthusiastic supporter of exacerbating child poverty, which stood at 10.4% by 2010.[21]

The cost of poverty is quite extensive:

* By 2011, poverty was said to cost the government between $72-86 billion per year;

* In the city of Hamilton, Ontario, there is a 21 year-difference in life expectancy between those who live in high and low-income neighborhoods;

* In March of 2010, nearly 900,000 Canadians had to go to food banks for food, 38% of them being children, an increase of 28% since March of 2008, the “highest level of food bank use ever”;

* In 2010, there were between 150-300,000 “visible” homeless in Canada, with another 900,000 “hidden” homeless, and 1.5 million families in “core housing need” and 3.1 million families in unaffordable housing;

* In 2010, 59% of Canadians (over 20 million Canadians) lived from paycheck to paycheck, “saying they would be in financial difficulty if their paycheque was delayed by a week”;

* In 2009, the average annual income of Canada’s best paid CEOs was $6.6 million, “155 times higher than the average worker’s income ($42,988);

* A third of all income growth in Canada over the past two decades has gone to the richest one percent of Canadians.”[22]

Canada’s Youth: A “Bankrupted Generation”

By January of 2009, Canadian students had a debt to the federal government of over $13 billion, with student loan debt increasing by $1.2 million every day. The Canadian Federation of Students said the obvious answer to this growing crisis was to make education “affordable.” Studies show the effects of student debt, reducing “the ability of new graduates to start families, work in public service careers, invest in other assets, volunteer, or even just take a lower paying job in their own field to get a foot in the door.” On top of the $13 billion owed to the Federal Government, Canadian students owed an additional $5 billion to provincial governments, and the figures do not include debt owed to banks, credit card companies or parents.[23] In short, Canada’s student youth are a “lost generation.”

In September of 2010, the Canadian Council on Learning published a report which indicated that, “students who graduate from college and university with high debt loads are putting off buying a house, having children or investing for the future.” The average debt load of a Canadian university graduate in 2009 was $26,680, and the average debt for college graduates was $13,600. These figures, it should be noted, do not take into account mortgages, credit card debt, lines of credit, or car loans.[24] This represented a doubling in the amount of student debt from 1990, and in 2005, the number of Canadian students needing loans to pay for their education had increased to 57%.[25]

In October of 2011, it was reported that Canadian student debt (to the Federal Government) will surpass $15 billion by 2013, which is the current ceiling set by the government in student loans. Thus, if it reaches the ceiling, the government will no longer (in theory) be able to provide student loans. The solution, according to the Canadian Federation of Students, does not mean eliminating the debt ceiling, which will only make the problem worse, but rather, in reducing the costs of education itself. As the national chairperson of the CFS stated, “The reality is that the job market is grim and students are facing their first interviews with a mortgage-sized debt.” Thus, once they begin work, they do not contribute to the economic growth of the country, but rather merely have to focus on paying interest and repaying debts. The cost of university education in Canada is estimated to be at $60,000, and some studies suggest that this will rise to $140,000 for those born in 2011. The average yearly undergraduate tuition fees were a 4.3% increase from the previous year, reaching $5,366.[26]

In 2011, almost two million Canadians had a student debt totaling $20 billion, and as the chairman of the Canadian Federation of Students stated, “We have an entire generation of people who now more than ever have to complete some form of post-secondary education just to get a job interview, with more than 70% of all new jobs requiring some degree or diploma. We are on the verge of bankrupting a generation before they even enter the workplace.” As job losses continue, and especially as the youth job market continues to decline, the number of full-time students tends to increase, and the availability of part-time work for students continues to decline. A post-secondary education no longer increases a “return on investment” through a lifetime, as it was once assumed. The overall student debt is not the most pressing immediate problem, but rather the “crippling interest rate attached to these government loans” which plunge youth into a deep crisis. So while interest rates are very low (in other lending, as set by the Bank of Canada at 1%), the government is charging 8% interest on student loans. Margaret Johnson, president of Solutions Credit Counselling Service Inc. in Vancouver stated that, “When the loan goes into default, the interest starts to compound. And then you have an absolute nightmare. The average debt I’m seeing is anywhere between $30,000 and $60,000. The payments are so high on some of these loans that the young person cannot live and make a payment. Instead of lowering the interest rate — or eliminating it, which I think is the best solution — the government extended the repayment term to 14 years. The fact that so many loans are in arrears proves this isn’t the answer.”[27]

Some things are worth repeating: the average debt for every Canadian household is over $100,000 and the average debt for a university graduate in Canada is over $26,000; nearly one million Canadians depend upon food banks for their food, poverty and inequality are increasing, homelessness is increasing; the rich are getting richer and everyone else is getting poor or poorer, and there is a horrible job market with few jobs available, let alone available to youth. So the “solution” – we are told – to the supposed “problem” of “competitiveness” in our universities… is to increase the burden, the cost, and the debt of students, families, and the general population; to increase tuition and student debt, to increase interest rates on all debts, and to plunge the population into abject poverty. It seems then, that Canadians, and the Western world in general (as these policies are being pushed throughout the G8 nations on the whole) are about to get a hard lesson in what our countries of the industrialized and supposedly “democratic” north have been doing to the rest of the world (Africa, Asia, Latin America) for decades and, indeed, centuries. What has been done abroad is now coming home to roost.

The conditions, restrictions, programs and policies that our nations have imposed upon Africa, Asia, and Latin America for the past four decades have plunged those countries into poverty, allowed for the unhindered control and extraction of their resources for our corporations, put their nations into the debt of our banks, exploited their populations for cheap labour, and propped up ruthless dictators to repress the people if they ever get wise and want to change their society. While our nations of course continue in their raping and pillaging of the world, now they have also turned their attention – and absolute disregard for humanity – to their domestic populations. The same banks, international institutions, nations, organizations and even individuals who promoted the policies which led to the impoverishment and punishment of much of the world’s population are now telling us that these same policies are the “solutions” to our current crises, just as they told the populations of Africa, Asia, and Latin America. If we listen to these same people, submit to the same policies, and accept the same ideologies which have caused so much destruction and devastation around the world, and expect different results at home, we deserve what we get. Naturally, then, we must stop accepting and consenting to the hegemony and power of our elites and their institutions and ideologies. This means that we have to actively create alternatives, not simply protest against their programs, or demand reforms, rearranging deck chairs on the Titanic. The boat is sinking, it doesn’t matter how it looks on the way down. It’s time for a new system altogether. One cannot demand from others to create a new system, but must actively create it themselves.

In the next part of this series, “Class War and the College Crisis,” I will be discussing the coming economic crisis for Canada, which has thus far been hailed as the “safest” nation emerging from the 2008 “recession,” a myth that will soon be broken. As Canada, and much of the rest of the world, begin their rapid descent into an economic depression, the above-mentioned statistics regarding debt, poverty, and inequality will get worse. As the social and economic crisis deepens, our governments will continue to show in whose interests they truly rule: with batons, tear gas, beatings, mass arrests, detention camps, and the growth and development of a police state surveillance society, our governments will reveal that they rule for bankers, corporations, and oligarchs. The democratic façade will wash away. It is within these circumstances that Canadians, and the wider world in general, must seek to create a true democratic system. First, however, we must recognize and understand the system in which we live for what it is: a State-Capitalist society ruled by a power-mad oligarchy. The next part of this series will be taking a look at what this power-mad oligarchy is doing and will be doing to Canada’s economy and society in the coming years. Here’s a hint: it doesn’t benefit YOU!

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

Notes

[1]            CRA, What are the income tax rates in Canada for 2012? Canada Revenue Agency:

http://www.cra-arc.gc.ca/tx/ndvdls/fq/txrts-eng.html

[2]            Finances Québec, “A Fair and Balanced University Funding Plan: To Give Québec the Means to Fulfill its Ambitions,” The Government of Québec, 2011-2012 Budget, page 7.

[3]            CFS, Tuition Fees, The Canadian Federation of Students:

http://cfs.bc.ca/index.php/section/49

[4]            Ibid.

[5]            Press Release, “TD Economics outlines plan for prosperity in Quebec report,” Newswire, 10 April 2007:

http://www.newswire.ca/fr/story/178423/td-economics-outlines-plan-for-prosperity-in-quebec-report

[6]            CNW, “Déjà Vu: O’Neill Report Recycles Dated, Discredited Tuition Fee Myths,” Newswire, 17 September 2010:

http://www.newswire.ca/en/story/673917/deja-vu-o-neill-report-recycles-dated-discredited-tuition-fee-myths

[7]            Alison Kershaw, “Thousands of students to stage walkout protest,” The Independent, 12 March 2012:

http://www.independent.co.uk/news/education/education-news/thousands-of-students-to-stage-walkout-protest-7562129.html

[8]            Carla Rivera and Larry Gordon, “Occupy protests bring small yet intense crowds to state campuses,” Los Angeles Times, 1 March 2012:

http://articles.latimes.com/2012/mar/01/local/la-me-student-protests-20120302

[9]            Giles Tremlett, “Fighting breaks out in Barcelona as students protest over education cuts,” The Guardian, 29 February 2012:

http://www.guardian.co.uk/world/2012/feb/29/fighting-barcelona-students-protest-education-cuts?newsfeed=true

[10]            Mark Olssen and Michael A. Peters, “Neoliberalism, Higher Education and the Knowledge Economy: From the Free Market to Knowledge Capitalism,” Journal of Education Policy (Vol. 20, No. 3, May 2005), page 331.

[11]            Ibid, pages 338-339.

[12]            CTV News Staff, “Average Canadian family debt hits $100,000,” CTV News, 17 February 2011:

http://www.ctv.ca/CTVNews/Canada/20110217/family-debt-110217/

[13]            Why are Canadian families falling further into debt?, The Globe and Mail, 14 February 2012:

http://www.theglobeandmail.com/globe-investor/personal-finance/household-finances/why-are-canadian-families-falling-further-into-debt/article2337540/

[14]            Tavia Grant, “Financial security ‘elusive’ for many Canadian families,” The Globe and Mail, 22 March 2012: http://www.theglobeandmail.com/report-on-business/economy/economy-lab/daily-mix/financial-security-elusive-for-many-canadian-families/article2377592/

[15]            Gordon Isfeld, “Bank of Canada says household debt ‘biggest risk’ to economy,” The Leader Post, 9 March 2012:

http://www.leaderpost.com/business/Bank+Canada+says+household+debt+biggest+risk+economy/6274564/story.html

[16]            John Morrissy, “Household debt a mounting concern as rates appear set to rise,” The Montreal Gazette, 23 March 2012:

http://www.montrealgazette.com/business/Household+debt+mounting+concern+rates+appear+rise/6347875/story.html

[17]            CBC, Wealth gap widens to 30-year high, CBC News, 5 December 2011:

http://www.cbc.ca/news/canada/story/2011/12/05/oecd-rich-poor-gap.html

[18]            Les Whittington, “Tax policies may aggravate gap between rich and poor,” Toronto Star, 27 May 2011:

http://www.thestar.com/news/canada/article/998648–tax-policies-may-aggravate-gap-between-rich-and-poor

[19]            Tavia Grant, “Income inequality rising quickly in Canada,” The Globe and Mail, 13 September 2011:

http://www.theglobeandmail.com/report-on-business/economy/economy-lab/daily-mix/income-inequality-rising-quickly-in-canada/article2163938/

[20]            CTV News Staff, “OECD report finds income inequality rising in Canada,” CTV News:

http://www.ctv.ca/CTVNews/TopStories/20111205/organization-economic-cooperation-development-oecd-inequality-report-canada-111205/#ixzz1pycGLl6e

[21]            Poverty in Canada: Mean Streets, The Economist, 25 November 2010:

http://www.economist.com/node/17581844

[22]            CTV News Staff, “Canada Student Loan debt tops $13B, figures show,” CTV News, 21 January 2009:

http://www.ctv.ca/CTVNews/Canada/20090121/student_loans_090121/

[23]            CTV News Staff, “Canada Student Loan debt tops $13B, figures show,” CTV News, 21 January 2009:

http://www.ctv.ca/CTVNews/Canada/20090121/student_loans_090121/

[24]            CBC, “Student debt limits post-grad options,” CBC News, 22 September 2010:

http://www.cbc.ca/news/story/2010/09/22/con-student-debt.html

[25]            QMI Agency, “Student debt doubled over 20 years: Study,” Toronto Sun, 22 September 2010:

http://www.torontosun.com/news/canada/2010/09/22/15435176.html

[26]            Sharon Singleton, “Action needed on student debt: CFS,” Toronto Sun, 17 October 2011:

http://www.torontosun.com/2011/10/17/action-needed-on-student-debt-cfs

[27]            Mary Teresa Bitti, Student debt bankrupting a generation, The Financial Post, 4 June 2011:

http://www.financialpost.com/news/Student+debt+bankrupting+generation/4874861/story.html