In the article “What is behind the information attacks on the Federal Reserve System?” I have already written about the research group of scientists at the Swiss Federal Institute (SFI) in Zurich. Their study was published in mid-2011 and was described by the world media as the sensation of the year. Since then, many authors, including “information guerrillas”, constantly refer to the Swiss work. In particular, the data from this study was used by David Wilcock in his book Financial Tyranny. Activists from the Occupy Wall Street movement also adopted the calculations of the Swiss group (links on posters, flyers, brochures).
The opening of the “core” of the world economy
The task of the Swiss scientists was to study the individual elements of the world economy, to set out to determine the vertical and horizontal connections between companies, and to answer the question of whether the world economy has a “crystalline core” or is an amorphous mass. Mainly the Swiss noticed the share of some companies in the capital of other companies. They processed a large amount of computer information relating to 37 million companies and investors around the world and from the 2007 Orbis database. After a rough preliminary “cleaning” from the array of companies from all the small “stuff”, what was left was a group of 43,000 transnational corporations (TNCs). Continuing in-depth analysis, the researchers identified a “core” of 1318 companies which accounted for about 20% of total sales of all companies in the database. The study did not end here. It turned out that each of the companies included in the above “core” participated on average in the capital of another 20 companies. Thus, the “core” controlled the production of a total of about 60% of world GDP.
The Swiss took a chance to dig even deeper. Within the large “core” (1318 companies), they found another small “core” consisting of only 147 TNCs. The Swiss did not provide much information about this small “core”.
Firstly, these 147 companies are closely linked through cross shareholdings.
Secondly, most of the small core (75%) consists of banks, insurance companies, and financial companies. In the “small core” Barclays Bank is listed first, and also at the top of the list with Barclays Bank appear JP Morgan Chase, UBS AG, Merrill Lynch, Deutsche Bank, Goldman Sachs, and others (the study reflects the situation in 2007, i.e. before the financial crisis).
Thirdly, according to the Swiss, the “small core” controls 40% of the world's assets, including 90% of the assets in the banking sector. The “information guerrillas” believe that the work of the Swiss scientists finally confirms the conclusion of the existence of a small group of people who control the world economy, finance, and politics. Also, that the “small core” consisting of 147 companies (or rather their owners) is “a group of conspirators,” against which the “information guerrillas” are fighting. It is correct, in their view, not to call this group a “small core” but a super entity, which runs the economy, finance, and politics on a global scale. The “small core” also became known as the Committee of 147 -- analogous to the Committee of 300 of John Coleman.
A simplified view of the world economy
You can say that the Swiss scientists that issued this sensational “news” were a little frightened. And, as though defending themselves, began to say that: (1) they do not believe in any conspiracy, and (2) they are only talking about the economic, but not political, power of the “small core”, and (3) the 147 companies have very disparate interests, which does not allow them to establish effective control over the global economy and politics.
However, I think that the reason for such excuses lies in a weak understanding by the Swiss group of the subtleties of modern economics and finance. The leader of the group, James Glattfelder, a physicist-theorist, and the other members of the group are specialists in information systems. By itself, the concentration of power does not imply anything either good or bad, say the researchers from Zurich. But this does not apply to the closely interconnected companies in the “core”. As we saw in 2008, such networks are unstable. If one company falls apart, others will follow, according to J. Glattfelder.
In these statements, I personally see not only a lack of understanding by the Swiss of the modern capitalist economy but frankly deceit. The “core” did not suffer as a result of the 2008-2009 crises in the world economy, but became even stronger. The bankruptcy of Lehman Brothers bank in the autumn of 2008, as serious experts correctly noted, was a carefully planned arrangement carried out on the instructions of all the major Wall Street bankers. All the bad assets were transferred from other banks to this bank, which allowed them to stay afloat and the “core” to become even stronger.
Of course, inside the “core” opened by the Swiss there are contradictions and tensions. There is a constant covert struggle for control of the world’s assets and resources. At the top level of the global hierarchy, there is a continual and unpublicized confrontation between the Rothschild and the Rockefeller clans. At the next level, the participants in any confrontation tend to be one of the two abovementioned clans. The struggle was analyzed convincingly and in detail by American Nicholas Hagger in his book The Syndicate: The Story of the Conspiracy Behind World Government, on the secret world government, its methods, and its impact on world politics and the economy. It is impossible to see, much less understand, the struggle within the “core” with the methods used by the Swiss group. No supercomputer could identify it.
Why does the “core” not only not break, but on the contrary, become further cemented? The reasons are many -- both objective and subjective. I will mention only one subjective reason -- the strengthening of the blood and family ties between the families that own the companies in the “core”. One of the objective reasons is to keep free some of the world’s resources over which factions are struggling for control. In other words, today we are seeing the struggle for the division of the world. When this phase is complete, the struggle for the redivision of the world will begin, and then the internal stresses within the “core” will increase sharply and there may be a risk of fracture.
The picture painted by the Swiss is, of course, highly simplified. One is struck, in particular, by the fact that the scientists from Zurich see the connection between companies merely in terms of capital. In their formula, the only instruments of control over the businesses are direct investment (i.e. large blocks of shares, stocks, equity shares). Meanwhile, in contemporary capitalism there is an increasing role in acquiring “non-equity” forms of control. First among them are loans that provide the lender at least no less opportunities in strategic decision making than the classical shares of large (majority) shareholders. Loans are tools that are in the exclusive possession of the banks.
Over a hundred years ago, in 1910, the fundamental position of the dominant role of banks in the economy of mature capitalism was established by German socialist Rudolf Hilferding (1877-1941) in his famous work Finance Capital. In it, he concluded that banks will eventually run society -- first within national borders, and then across the world. The banks will be able to plan production, circulation, exchange, and consumption. So the world, claimed Hilferding, will get rid of crises. He called this a social model of “organized capitalism”. In his view, this model, with certain reservations, can also be called “socialism”. Incidentally, during the last crisis, when U.S. and other banks got billions and trillions of dollars from the U.S. budget and the U.S. Federal Reserve, America began to speak of the coming of an era of “banking socialism”.
Hilferding is rarely remembered today. And this is wrong. The modern world is characterized by the dominance of banks in the economy and politics, strikingly similar to the picture of the world that this German drew more than a hundred years ago. Admirers of Hilferding are divided in explaining his vision. Some consider him a genius. Others believe that he was dedicated to the long-term global oligarchy that throughout the twentieth century has persistently built “banking socialism”.
The super entity and the Federal Reserve
So, according to the conclusion of the Swiss scientists, it can be said that they have once again “discovered America”, which others have done many times before, without using a supercomputer. Everything is in plain sight. Suffice it to recall the work of American researcher Eustace Mullins in The Secrets of the Federal Reserve, where he gives lists of the U.S. Federal Reserve’s shareholders. The same banks appear on these lists as were “calculated” by the Swiss. Only the names of the banks have changed somewhat over the decades since the creation of the Federal Reserve, as banks’ shareholders have been constantly reorganized as a result of mergers and acquisitions.
It is also worth remembering the result of a partial audit of the Federal Reserve which was conducted in 2011. The audit revealed that during the last financial crisis, the Federal Reserve gave the largest U.S. and foreign banks loans for the astronomical sum of 16 trillion dollars. A list of banks was published with information on the specific loan amount. We see in this the same set of banks (in parentheses are the amounts of Federal Reserve loans received in billions of dollars): Citigroup (2500); Morgan Stanley (2004); Merrill Lynch (1949); Bank of America (1344); Barclays PLC (868); Bear Sterns (853); Goldman Sachs (814); Royal Bank of Scotland (541); JP Morgan (391); Deutsche Bank (354); Credit Suisse (262); UBS (287); Lehman Brothers (183); Bank of Scotland (181); and BNP Paribas (175).
It can be seen in the list of the banks that have benefitted that they are the same banks that were “calculated” by the Swiss scientists. Whether because of prudence or because of ignorance, these scientists did not even hint that the super entity has any connection to the Federal Reserve. Meanwhile, the relationship here is very simple:
(A) The banks which form the super entity are major shareholders of a private corporation under the name of the Federal Reserve.
(B) The Federal Reserve, having a monopoly on the printing press, is supplying its products, i.e. money, to those selected banks, which are the owners of the Fed.
So, the money received by the Federal Reserve’s “favorite” banks is being directed to buy up assets around the world -- directly or through non-financial corporations under their control, receiving from its hands cheap or even free loans.
(The Strategic Culture Foundation Online Journal -- strategic-culture.org)
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