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Larry Summers and the Secret "End-Game" Memo

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Larry Summers and the Secret "End-Game" Memo Powered By Docstoc
					Larry Summers and the Secret "End-Game"
Memo
By Greg Palast for Vice Magazine
Thursday, 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% 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.
To get that confirmation, I would have to fly to Geneva and wangle a meeting with the Secretary
General of the World Trade Organization, Pascal Lamy. I did. Lamy, the Generalissimo of
Globalization, 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 Summers’ flunky, Timothy Geithner, reminding his boss to call the then most powerful
CEOs on the planet and get them 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 their private lines. 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, an abstruse and benign addendum to the international trade agreements policed by
the World Trade Organization.
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 ginned-up 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 Organization.
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 legalized: 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.
Greg Palast Confronts The Generalissimo of Globalization VIDEO BELOW
http://www.youtube.com/watch?v=rKqJmEPuBgc&feature=player_embedded

Greg Palast: A Memo that Confirmed Every Conspiracy Freak's Fantasy VIDEO BELOW
http://www.youtube.com/watch?v=ogc-LRWByhY&feature=youtu.be


                 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. 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% 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.