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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsLarry Summers and the 'End Game' memo
THE CONFIDENTIAL MEMO AT THE HEART OF THE GLOBAL FINANCIAL CRISISBy Greg Palast
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 freaks 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 Obamas leading choice for Chairman of the US Federal Reserve, the worlds central bank. If the confidential memo is authentic, then Summers shouldnt 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 dont 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:
http://www.vice.com/en_uk/read/larry-summers-and-the-secret-end-game-memo
It was a conspiracy ... oh wait I used that word....
hedda_foil
(16,375 posts)Ichingcarpenter
(36,988 posts)and it was a conspiracy.
Junkdrawer
(27,993 posts)Ichingcarpenter
(36,988 posts)and not get into the bat-mobile.
questionseverything
(9,657 posts)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.
Ichingcarpenter
(36,988 posts)but only after they got the car parts deal which destroyed US jobs and Brazil backed out of it and then was punished.
Fantastic Anarchist
(7,309 posts)Of course, the left-wing (and by that, I mean us crazy far left-wing nutters) was correct again.
But let's just call it conspiracy nonsense and stick our collective heads in the sand.
HereSince1628
(36,063 posts)arrived at privately by elites?
Fantastic Anarchist
(7,309 posts)By all means call it a conspiracy, because that's what it is. It's also incredibly evil.
And the fact of the matter, despite protestations by the actual Left, and despite always being correct, no one listens to us, or relegates us to fringe status.
If no one is going to listen to us, nothing is going to change.
Mojorabbit
(16,020 posts)blkmusclmachine
(16,149 posts)blkmusclmachine
(16,149 posts)as they empty your wallets and savings accounts.
nashville_brook
(20,958 posts)what's old is new again.
Locrian
(4,522 posts)Summers is in Shock Doctine - wasn't it with the Russian economy?
In 1993 Summers was appointed Undersecretary for International Affairs and later in the United States Department of the Treasury under the Clinton Administration. In 1995, he was promoted to Deputy Secretary of the Treasury under his long-time political mentor Robert Rubin. In 1999, he succeeded Rubin as Secretary of the Treasury.
Much of Summers's tenure at the Treasury Department was focused on international economic issues. He was deeply involved in the Clinton administration's effort to bail out Mexico and Russia when those nations had currency crises.[10] Summers set up a project through which the Harvard Institute for International Development provided advice to the Russian government between 1992 and 1997. Later there was a scandal when it emerged that some of the Harvard project members had invested in Russia, and were therefore not impartial advisors.[11] Summers encouraged then-Russian leader Boris Yeltsin to use the same "three-'ations'" of policy he advocated in the Clinton Administration-- "privatization, stabilization, and liberalization."[12]
Summers pressured the Korean government to raise its interest rates and balance its budget in the midst of a recession, policies criticized by Paul Krugman and Joseph Stiglitz.[13] According to the book The Chastening, by Paul Blustein, during this crisis, Summers, along with Paul Wolfowitz, pushed for regime change in Indonesia.[14]
Summers was a leading voice within the Clinton Administration arguing against American leadership in greenhouse gas reductions and against US participation in the Kyoto Protocol, according to internal documents made public in 2009.[15]
http://en.wikipedia.org/wiki/Lawrence_Summers
Fantastic Anarchist
(7,309 posts)Textbook example.
elehhhhna
(32,076 posts)And good morning, Agent Mike and other assorted NSA tools! Say hi to Kenny O. for me , we went to HS together.
Nuclear Unicorn
(19,497 posts)You can't expect a man who claimed in senate testimony to be too incapable to figure out retail tax filing software to understand something as complex as worldwide banking regulations, do you?
pa28
(6,145 posts)K&R for exposure.
blkmusclmachine
(16,149 posts)KoKo
(84,711 posts)But, we all know that whatever Obama wants...he gets. Like with Penny Pritzger and other nominations that there was hugepush back on..(and rightful pushback) Summers will probably get it. And, if not Summers...he will come up with someone equally as unsuitable...and it won't be Janet Yellen, but probably some surprise name that when checked out will be a crony of Summers.
FreakinDJ
(17,644 posts)TBF
(32,084 posts)I really don't think Obama has a lot of leeway here. He is owned by the ruling class. They are calling the shots.
Amonester
(11,541 posts)he doesn't give them the billions they want, and he knows they can do it anytime they want?
AnotherMcIntosh
(11,064 posts)Amonester
(11,541 posts)They pulled it once, why wouldn't they pull it again?
AnotherMcIntosh
(11,064 posts)earlier time and "threaten to destroy the world's economy" if Obama "didn't give them the billions they want."
They did not pull that once.
You have nothing to support your implication that they or anyone else has ever threatened Obama. You likewise have nothing to support your implication that Obama has ever succumbed to threats. Or even that he cares about the economy.
Amonester
(11,541 posts)'recently' who then might have 'advised' him about it.
And if you think Obama 'doesn't care' about the economy, you're not paying attention.
delrem
(9,688 posts)Obama isn't being blackmailed.
No matter how someone wants to frame it.
The Pres. of the USA has the means to repel that kind of shit.
Civilization2
(649 posts)The banksters hold all the cards and play them at will,. . money is power as they say.
caseymoz
(5,763 posts)You're simply multiplying nothing by zero. All you have is a wild-ass guess.
But yes, it could happen. There are many more things that could happen that don't then are things that could and do. If that's your only evidence, statistics are stacked against you.
I'm afraid to say, given Obama's appointments (of Summers and Geithner, et al) and policies of not prosecuting the financial sector after they wrecked the world's economy, there's more evidence he's in the pocket of Wall Street. Though it's not conclusive, it's a better guess than what you're saying because anything is more than nothing.
Remember, Obama's reputation as an 11th dimensional chess player? Well, what makes you think he's not playing chess against us? Who would be easier to beat than the ones who forgive him for anything? Who don't even know they're being played?
FreakinDJ
(17,644 posts)and Obama immediately jumped into bed with Wall St. appointing Summers and Gietner to critical positions during the melt down. No Wall St. Financiers have been indicted, brought to justice, incarcerated or at least some of the "Too Big to Fail" institutions dissolved or broken up.
In short - they have been rewarded with over a $Trillion
No - nothing but imagination. You keep telling yourself that
AnotherMcIntosh
(11,064 posts)I disagree 100% with the other poster's speculation that Obama is responding to threats from Wall St. Financiers to destroy the world's economy again if he doesn't give them the billions they want. For a person to believe such theory which is based upon threats, they have to disregard the fact that Obama immediately adopted Bush-carryovers and other Republicans for high positions in his Administration. They have to believe that he cares about threats affecting others rather than his personal money. Is he the first Chicago politician to be threatened into running for office, threatened into making liberal and progressive noises, threatened into adopting high-level Republicans and Republican policies, threatened into ...?
I also disagree with the poster who refers to "billions." I think, as you say that you do, that it is trillions.
Here's a guy who has a spy-upon-everyone apparatus and can be threatened into assisting the Wall St. Financiers? He's subject to threats? Somehow, I don't think so.
blkmusclmachine
(16,149 posts)bemildred
(90,061 posts)DeSwiss
(27,137 posts)~Robert Anton Wilson
I don't know why people swallow the lie that there are no conspiracies. Conspiracies are simply plans that a person or persons don't want other people to know about. Corporations and everyone else have meetings, short term goals and long term goals.
The fact that this is done in cases of planning a crime is seen as absurd...is beyond absurd.
Fantastic Anarchist
(7,309 posts)Thanks for posting that.
glinda
(14,807 posts)DirkGently
(12,151 posts)BlueManFan
(256 posts)being considered for the post of Chairman of the Fed. We'll see him at his swearing in. (Sorry for the re-post, but I posted this back on August 13 and I'm sure now more than ever that it is going to come to pass. Fed chair will be his reward for helping to break the god damn planet, financially.
Hydra
(14,459 posts)And he'll do it even better next time!
BillyRibs
(787 posts)whatchamacallit
(15,558 posts)That's about it.
blkmusclmachine
(16,149 posts)Ocelot
(227 posts)Nothing wrong with the word "Conspiracy" when it involves FACT, not theory (as in this case). Examine history, there have been many conspiracies which have been well-documented, for example the conspiracy to overthrow FDR by big-business tycoons. This is 100% for real.
BillyRibs
(787 posts)Right wingers call the POTUS a Socialist!
navarth
(5,927 posts)Enthusiast
(50,983 posts)it serves the purpose of generating an effective smoke screen. It gives the right's minions and talking heads something to repeat, no matter how many light years from the truth it is. And it helps cover up the President's true nature.
GeorgeGist
(25,322 posts)until then I suspect Greg is blowing smoke up welcoming asses.
Response to GeorgeGist (Reply #23)
Post removed
gussmith
(280 posts)Let's see the memo.
deutsey
(20,166 posts)rhett o rick
(55,981 posts)Civilization2
(649 posts)"dumbass" defies 'community standards' when it clearly applies to the poster claiming that the link was missing in the first place,. another example of sad and lame denialism by the frightened little children who can not face reality.
EDIT: I just noticed that is was "Ichingcarpenter" that was juried down, for calling a commentor a "dumbass",. this mean they are now locked out of their own OP?!?!? I must say that is wrong! Can we be a little less thin-skinned with the whole "name calling" hurt feelings babying,.
I mean really, "dumbass" is hardly the worst insult I can think of;
I guess we have to keep playing Jeopardy and phrase our name-calling in the form of a rhetorical,. but I for one think it is a little pathetic.
FlyByNight
(1,756 posts)Summers seems a fine potential choice for Fed Chairman. (Sarcasm should be self-evident.)
DallasNE
(7,403 posts)I am reminded of the Bush National Guard memo that caused Dan Rather to resign from CBS.
Here I am drawn to Goldman-Sachs CEO John Corzine. As most people know, it is Jon Corzine -- not John.
Lack of attention to detail certainly makes me wonder how much faith you can put into this memo.
Fire Walk With Me
(38,893 posts)however strong my urge may be to dance upon figurative bankster graves.
deutsey
(20,166 posts)that doesn't mean it will be mean a damn thing to most people.
I think Palast pretty much proved Jeb Bush's cronies conducted a massive purge of eligible African-American voters from Florida voter rolls before the 2000 election. If so, very few people (Democrats included) seemed to give a damn.
Fire Walk With Me
(38,893 posts)arcane1
(38,613 posts)And look where that got him
StoneCarver
(249 posts)Doesn't the memo say Jon Corzine? I don't see where it says John.
http://www.gregpalast.com//vulturespicnic/pages/filecabinet/chapter12/Geithner_Summers%20Memo.pdf
deutsey
(20,166 posts)It's "John" in Palast's article. He should correct that.
DallasNE
(7,403 posts)Goldman Sachs: John Corzine (212)902-8281
Someone else then posted the link to the actual memo and it did show Jon but I came across that later. I just checked the link in the top post and it still says "John Corzine" and it just jumped out at me when I first read it, assuming it was a cut and paste from the not then available memo.
Ichingcarpenter
(36,988 posts)please pay attention to thread.
JDPriestly
(57,936 posts)But be careful. My virus protection system found a Trojan when I turned on the video. I don't know what that means. I had just downloaded a new version of Adobe Flash Player so that might have caused the problem. I'm just warning people to be careful. The video tells you that the memo is probably authentic.
Civilization2
(649 posts)One simply needs to follow the money, read the "laws" implemented by these deranged fools, see how they move from gov. to bankster CEO jobs and havoc they have wrote on the world.
The memo is a nice bit of evidence, but it is hardly necessary to prove the point of the article,. the banksters are reckless terrorists exploiting for short term profits for themselves, at the expense of everyone, and everything on the planet. This is clearly the case, and easily observable to anyone who cares to have even a cursory look into it.
myrna minx
(22,772 posts)nadinbrzezinski
(154,021 posts)Enthusiast
(50,983 posts)The problem is - it's an ongoing conspiracy.
questionseverything
(9,657 posts)eom
Egalitarian Thug
(12,448 posts)The replies from the dedicated blind are pretty funny, if somewhat pathetic.
Civilization2
(649 posts)Sadly, way too many folks are in the grips of denial, since they are having trouble altering their world view to coincide with reality.
Clearly a reality none of us want to be, yet until we see and accept the actual truth, how can we possible make any changes to it?
Egalitarian Thug
(12,448 posts)history have told us this in a thousand different ways, and still delusion persists in defining us as a species.
"Those who can make you believe absurdities can make you commit atrocities." - Voltaire
colsohlibgal
(5,275 posts)Obama couldn't wait to hire Summers and the Rubin clan, Obama apologists have a hard time rationalizing that.
The Big D democratic party is in cahoots with Wall Street just like the republicans.
avaistheone1
(14,626 posts)unfortunately not the kind that would really benefit this country.
Response to colsohlibgal (Reply #36)
avaistheone1 This message was self-deleted by its author.
polichick
(37,152 posts)Pretzel_Warrior
(8,361 posts)blackspade
(10,056 posts)and burns.
blkmusclmachine
(16,149 posts)Just in time to tank 2014 for the Democrats, yes?
-
Phlem
(6,323 posts)Fire Walk With Me
(38,893 posts)HardTimes99
(2,049 posts)repair the rotten capitalist system, enriching themselves on both the collapse and its repair. Meanwhile, the masses are fed a bullshit line of 'austerity' and 'balanced budgets,' all to protect the interests of the global 1%
blkmusclmachine
(16,149 posts)Fantastic Anarchist
(7,309 posts)And even as well-read and knowledgeable about this stuff as I am, I am still amazed at new revelations. This is straight out of Disaster Capitalism.
The thing about Greece really struck a chord, because in my conversations with people, both American and European, they blame the Greeks on their "welfare statism." I've been stressing that it's the Banksters and their fabricated derivatives con-jobs that destroyed Greece, not "left-wing welfare statism."
It's a total con-job. The capitalists get off scot-free and and manage to convince otherwise intelligent people that it's left-wing economics/politics that are to blame.
It's evil. It's, unfortunately, not going away. All one has to do is to elect so-called a "progressive democrat" and lull everyone back to thinking everything is going to get better.
Thanks for posting, Ichingcarpenter.
blkmusclmachine
(16,149 posts)Civilization2
(649 posts)anything of social uplift is attacked as the "cause" of the havoc these 1% banksters and their corporate politicians have wrought!
It is sad, and more than a little pathetic, that so many people would rather blame the poor than acknowledge the very system itself is rigged to favor the rich.
Amazing really,. I suppose they still hold out hope that "one day" they will join the 1% wealth class, and they don't want to rock the boat till then,. . greed is a powerful force.
Fantastic Anarchist
(7,309 posts)And yes, a lot of people think they'll be 1%ers. They are evil, too.
whatchamacallit
(15,558 posts)arcane1
(38,613 posts)whatchamacallit
(15,558 posts)blkmusclmachine
(16,149 posts)Maven
(10,533 posts)hatrack
(59,592 posts)But given his record, I haven't seen any evidence that would warrant not being pissed off . . . which is more than a little ironic, given the reverential status accorded economics as a predictive "science".
Civilization2
(649 posts)while not even noticing that they 1% have gamed us!
In his calculation that they could "get away with it" he has been 100% correct every time!
Sad but true.
Egalitarian Thug
(12,448 posts)will do the most wickedest of things for the greatest good of everyone." - John Maynard Keynes
Enthusiast
(50,983 posts)That's why capitalism must have the ever livin' shit regulated out of it.
Egalitarian Thug
(12,448 posts)Fire Walk With Me
(38,893 posts)Berlum
(7,044 posts)nt
leftstreet
(36,110 posts)corkhead
(6,119 posts)"The illusion of freedom [in America] will continue as long as its profitable to continue the illusion. At the point where the illusion becomes too expensive to maintain, they will just take down the scenery, they will pull back the curtains, they will move the tables and chairs out of the way and you will see the brick wall at the back of the theater." Frank Zappa
Fire Walk With Me
(38,893 posts)CRH
(1,553 posts)soon to be adopted by Obama. Can't blame this one on BFEE. And after 5 years of Obama, it seems BAU. How will we ever blame this one on the Repubs?
Octafish
(55,745 posts)Know your BFEE: Phil Gramm, the Meyer Lansky of the War Party, Set-Up the Biggest Bank Heist Ever.
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x4055207
blkmusclmachine
(16,149 posts)(D)'s & (R)'s in cahoots. Tag teaming Main Street.
Octafish
(55,745 posts)"Money trumps peace." -- George W Bush, Feb. 14, 2007
All who go along with that are complicit.
rhett o rick
(55,981 posts)WillyT
(72,631 posts)antigop
(12,778 posts)The deal would require domestic law to conform to the now-rejected model of extreme deregulation that caused the crisis. The TPP would forbid countries from banning particularly risky financial products, such as the toxic derivatives that led to the $183 billion government bailout of AIG.
The TPP would threaten the use of "firewalls" - policies that are employed to stop the spread of risk between different types of financial institutions and products. While many in the United States have called for a reinstatement of the Glass-Steagall Act, that helped eliminate banking crises for four decades by prohibiting deposit-holding commercial banks from dealing in risky investments, the TPP would bar such reform. The TPP would ban capital controls, an essential policy tool to counter destabilizing flows of speculative money. Even the International Monetary Fund has recently endorsed capital controls as legitimate for mitigating or preventing financial crises.
The TPP would prohibit taxes on Wall Street speculation. That means that there would be no hope of passing proposals like the Robin Hood Tax, which would impose a tiny tax on Wall Street transactions to tamp down speculation-fueled volatility while generating hundreds of billions of dollars' worth of revenue for social, health, or environmental causes.
The TPP would empower financial firms to directly attack these government policies in foreign tribunals, and demand taxpayer compensation for policies they claim undermine their expected future profits.
Good connection to make.
antigop
(12,778 posts)Civilization2
(649 posts)Why would they stop,. they get everything they want every time, and the bulk of the people blame it all on each other,. never the 1% banksters,. that would be a "crazy conspiracy" Oh no, that just cant be true,. .
wildbilln864
(13,382 posts)n/t
blkmusclmachine
(16,149 posts)99Forever
(14,524 posts)This IS WHY he is Barack Obama's first choice. 1%ers, protecting their own at the expense of everyone else.
Berlum
(7,044 posts)Dark n Stormy Knight
(9,771 posts)That's why they knew they could get away with it, because we are virtually powerless.
Fire Walk With Me
(38,893 posts)Dark n Stormy Knight
(9,771 posts)(a quote, unlike so many attributed to him on the interwebs, that can be positively attributed to John Lennon. Not that I think he's a guru or anything, but that was a great and true line.) And now that the 1% has stolen most of our nation's wealth, we are too tired to do much more than struggle to make a living.
Fire Walk With Me
(38,893 posts)Which is all part of their plan. What about OUR plan? Think; what to do?
Dark n Stormy Knight
(9,771 posts)Fire Walk With Me
(38,893 posts)That's what the surveillance state is for, to protect their interests. DHS militarizing police departments...it's all "part of the plan".
To beat them we'll have to think complex and multiplex instead of the simplex reaction of rage in the streets. Attack them in their profit centers. Defeat their legislation. Stop their globalisation. End the TPP. Occupy them where it HURTS them. Reveal their evil. Let no friend or family member remain unaware of this memo and its larger meaning. Activate. Agitate.
Dark n Stormy Knight
(9,771 posts)a chance, no matter what we do. Too much of the power is in their hands for us to take it back. Whoever controls the money and the media controls the world. Have you read The Power Broker, by Robert Caro? I just finished it and it left me quite depressed.
I guess I must still hold onto a glimmer of hope or I wouldn't bother with DU at all, so thanks for keeping the faith. Maybe I'll rebound.
Fire Walk With Me
(38,893 posts)"New World Order...When we are successful...and we will be..."
Considering the Bush disaster family are effectively behind the post 9/11 surveillance state, raking in $2 billion from their 2/3s stake in Booz Hamilton alone...and are part of the massive grab of water per their buddies Enron's early experiments...if you take the Bush family as Plutonomists, the NWO is the Plutonomy we've seen built since before the 2008 theft of trillions of taxpayer dollars by banks and corporations, it all begins to make sense.
All your money and privacy are belong to BushCo
http://www.democraticunderground.com/10023490164
Water privatization by the richest rich is happening now ("hydraulic empire" incl. the Bush family
http://www.democraticunderground.com/10023406830
The source of the term is a quotation in an October 17, 2004, The New York Times Magazine article by writer Ron Suskind, quoting an unnamed aide to George W. Bush (later attributed to Karl Rove[1]):
The aide said that guys like me were "in what we call the reality-based community," which he defined as people who "believe that solutions emerge from your judicious study of discernible reality." ... "That's not the way the world really works anymore," he continued. "We're an empire now, and when we act, we create our own reality. And while you're studying that realityjudiciously, as you willwe'll act again, creating other new realities, which you can study too, and that's how things will sort out. We're history's actors and you, all of you, will be left to just study what we do."[2]
http://en.wikipedia.org/wiki/Reality-based_community
Download three secret Citigroup Plutonomy reports
http://our99angrypercent.wordpress.com/2011/11/27/download-citigroup-plutonomy-memos/