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The Confidential Memo at the Heart of the Global Financial Crisis

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					The Confidential Memo at the Heart of the
Global Financial Crisis
Greg Palast
Vice
August 22, 2013




When a little birdie dropped the End Game memo through my window, its content was so
explosive, so sick and plain evil, I just couldn't believe it.
The Memo confirmed every conspiracy freak’s fantasy: that in the late 1990s, the top US Treasury
officials secretly conspired with a small cabal of banker big-shots to rip apart financial regulation
across the planet. When you see 26.3 percent unemployment in Spain, desperation and hunger in
Greece, riots in Indonesia and Detroit in bankruptcy, go back to this End Game memo, the genesis of
the blood and tears.
The Treasury official playing the bankers’ secret End Game was Larry Summers. Today, Summers is
Barack Obama’s leading choice for Chairman of the US Federal Reserve, the world’s central bank. If
the confidential memo is authentic, then Summers shouldn’t be serving on the Fed, he should be
serving hard time in some dungeon reserved for the criminally insane of the finance world.
The memo is authentic.
I had to fly to Geneva to get confirmation and wangle a meeting with the Secretary General of the
World Trade Organisation, Pascal Lamy. Lamy, the Generalissimo of Globalisation, told me,
         “The WTO was not created as some dark cabal of multinationals secretly cooking plots
         against the people... We don’t have cigar-smoking, rich, crazy bankers negotiating.”
Then I showed him the memo.
It begins with Larry Summers’ flunky, Timothy Geithner, reminding his boss to call the Bank bigshots
to order their lobbyist armies to march:
         “As we enter the end-game of the WTO financial services negotiations, I believe it would be a
         good idea for you to touch base with the CEOs…”
To avoid Summers having to call his office to get the phone numbers (which, under US law, would
have to appear on public logs), Geithner listed the private lines of what were then the five most
powerful CEOs on the planet. And here they are:
Goldman Sachs: John Corzine (212)902-8281
Merrill Lynch: David Kamanski (212)449-6868
Bank of America: David Coulter (415)622-2255
Citibank: John Reed (212)559-2732
Chase Manhattan: Walter Shipley (212)270-1380
Lamy was right: They don’t smoke cigars. Go ahead and
dial them. I did, and sure enough, got a cheery personal
hello from Reed – cheery until I revealed I wasn't Larry
Summers. (Note: The other numbers were swiftly
disconnected. And Corzine can’t be reached while he
faces criminal charges.)
It's not the little cabal of confabs held by Summers and
the banksters that’s so troubling. The horror is in the
purpose of the "end game” itself.
Let me explain:
The year was 1997. US Treasury Secretary Robert Rubin
was pushing hard to de-regulate banks. That required,
first, repeal of the Glass-Steagall Act to dismantle the
barrier between commercial banks and investment banks.
It was like replacing bank vaults with roulette wheels.
Second, the banks wanted the right to play a new high-risk game: “derivatives trading”. JP Morgan
alone would soon carry $88 trillion of these pseudo-securities on its books as “assets”.
Deputy Treasury Secretary Summers (soon to replace Rubin as Secretary) body-blocked any attempt to
control derivatives.
But what was the use of turning US banks into derivatives casinos if money would flee to nations with
safer banking laws?
The answer conceived by the Big Bank Five: eliminate controls on banks in every nation on the planet
-- in one single move. It was as brilliant as it was insanely dangerous.
How could they pull off this mad caper? The bankers' and Summers' game was to use the Financial
Services Agreement (or FSA), an abstruse and benign addendum to the international trade agreements
                                                           policed by the World Trade Organisation.
                                                           Until the bankers began their play, the WTO
                                                           agreements dealt simply with trade in goods –
                                                           that is, my cars for your bananas. The new
                                                           rules devised by Summers and the banks
                                                           would force all nations to accept trade in
                                                           "bads" – toxic assets like financial derivatives.
                                                           Until the bankers’ re-draft of the FSA, each
                                                           nation controlled and chartered the banks
                                                           within their own borders. The new rules of the
                                                           game would force every nation to open their
                                                           markets to Citibank, JP Morgan and their
                                                           derivatives “products”.
                                                           And all 156 nations in the WTO would have to
                                                           smash down their own Glass-Steagall divisions
                                                           between commercial savings banks and the
                                                           investment banks that gamble with derivatives.
The job of turning the FSA into the bankers’ battering ram was given to Geithner, who was named
Ambassador to the World Trade Organisation.

Bankers Go Bananas
Why in the world would any nation agree to let its banking system be boarded and seized by financial
pirates like JP Morgan?
The answer, in the case of Ecuador, was bananas. Ecuador was truly a banana republic. The yellow
fruit was that nation’s life-and-death source of hard currency. If it refused to sign the new FSA,
Ecuador could feed its bananas to the monkeys and go back into bankruptcy. Ecuador signed.
And so on – with every single nation bullied into signing.
Every nation but one, I should say. Brazil’s new President, Inacio Lula da Silva, refused. In retaliation,
Brazil was threatened with a virtual embargo of its products by the European Union's Trade
Commissioner, one Peter Mandelson, according to another confidential memo I got my hands on. But
Lula’s refusenik stance paid off for Brazil which, alone among Western nations, survived and thrived
during the 2007-9 bank crisis.
China signed – but got its pound of flesh in return. It opened its banking sector a crack in return for
access and control of the US auto parts and other markets. (Swiftly, two million US jobs shifted to
China.)
The new FSA pulled the lid off the Pandora’s box of worldwide derivatives trade. Among the notorious
transactions legalised: Goldman Sachs (where Treasury Secretary Rubin had been co-chairman)
worked a secret euro-derivatives swap with Greece which, ultimately, destroyed that nation. Ecuador,
its own banking sector de-regulated and demolished, exploded into riots. Argentina had to sell off its oil
companies (to the Spanish) and water systems (to Enron) while its teachers hunted for food in garbage
cans. Then, Bankers Gone Wild in the Eurozone dove head-first into derivatives pools without knowing
how to swim – and the continent is now being sold off in tiny, cheap pieces to Germany.
Of course, it was not just threats that sold the FSA, but temptation as well. After all, every evil starts
with one bite of an apple offered by a
snake. The apple: the gleaming piles of
lucre hidden in the FSA for local elites.
The snake was named Larry.
Does all this evil and pain flow from a
single memo? Of course not: the evil was
The Game itself, as played by the banker
clique. The memo only revealed their
game-plan for checkmate.
And the memo reveals a lot about
Summers and Obama.
While billions of sorry souls are still
hurting from worldwide banker-made
disaster, Rubin and Summers didn’t do
too badly. Rubin’s deregulation of banks
had permitted the creation of a financial
monstrosity called “Citigroup”. Within
weeks of leaving office, Rubin was named
director, then Chairman of Citigroup –
which went bankrupt while managing to
pay Rubin a total of $126 million.
Then Rubin took on another post: as key campaign benefactor to a young State Senator, Barack
Obama. Only days after his election as President, Obama, at Rubin’s insistence, gave Summers the odd
post of US “Economics Tsar” and made Geithner his Tsarina (that is, Secretary of Treasury). In 2010,
Summers gave up his royalist robes to return to “consulting” for Citibank and other creatures of bank
deregulation whose payments have raised Summers’ net worth by $31 million since the “end-game”
memo.
That Obama would, at Robert Rubin’s demand, now choose Summers to run the Federal Reserve Board
means that, unfortunately, we are far from the end of the game.
Special thanks to expert Mary Bottari of Bankster USA www.BanksterUSA.org without whom our
investigation could not have begun.
The film of my meeting with WTO chief Lamy was originally created for Ring of Fire, hosted by Mike
Papantonio and Robert F. Kennedy Jr.
Further discussion of the documents I laid before Lamy can be found in “The Generalissimo of
Globalization,” Chapter 12 of Vultures’ Picnic by Greg Palast (Constable Robinson 2012).
IF THIS IS TRUE AND A COLLAPSE IS COMING MY FELLOW PATRIOTS GET READY
GOLD, SILVER, FOOD, GUNS, AMMO, YOU WILL NEED IT. GET RIGHT WITH GOD
DON'T ALLOW YOUR SELF TO BE PUT IN A FEMA CAMP. WE MIGHT HAVE TO FIGHT
AND MAYBE DIE. BUT AT LEAST WE WILL DIE ON OUR OWN TERMS NOT ON THE
GLOBALIST TERMS. DON'T BE AFFRAID GOD IS ON OUR SIDE. PEACE LOVE GOD
BLESS US ALL.

                      INFOWARS.COM
   BECAUSE THERE'S A WAR ON FOR YOUR MIND

				
DOCUMENT INFO
Description: When a little birdie dropped the End Game memo through my window, its content was so explosive, so sick and plain evil, I just couldn't believe it.