Wednesday, November 16, 2011

The Goldman Technocrats Take the Throne in Europe

Did Goldman Sachs play a key role in Europe's fiscal meltdown and are Goldman Sachs alumni now moving into top positions in the most unstable Euro nations?  Apparently so.  This one's a true eye-opener.

"According to its detractors, the European network of influence woven by American bank Goldman Sachs (GS) functions like a freemasonry. To diverse degrees, the new European Central Bank President, Mario Draghi, the newly designated Prime Minister of Italy, Mario Monti, and the freshly appointed Greek Prime Minister Lucas Papademos are totemic figures in this carefully constructed web.

"Draghi was Goldman Sachs International’s vice-chairman for Europe between 2002 and 2005, a position that put him in charge of the the “companies and sovereign” department, which shortly before his arrival, helped Greece to disguise the real nature of its books with a swap on its sovereign debt.

"Monti was an international adviser to Goldman Sachs from 2005 until his nomination to lead the Italian government. According to the bank, his mission was to provide advice "on European business and major public policy initiatives worldwide". As such, he was a "door opener" with a brief to defend Goldman’s interest in the corridors of power in Europe.

"The third man, Lucas Papademos, was the governor of the Greek central bank from 1994 to 2002. In this capacity, he played a role that has yet to be elucidated in the operation to mask debt on his country’s books, perpetrated with assistance from Goldman Sachs. And perhaps more importantly, the current chairman of Greece’s Public Debt Management Agency, Petros Christodoulos, also worked as a trader for the bank in London.

:Two other heavyweight members of Goldman’s European network have also figured large in the euro crisis: Otmar Issing, a former member of the Bundesbank board of directors and a one-time chief economist of the European Central Bank, and Ireland’s Peter Sutherland, an administrator for Goldman Sachs International, who played a behind the scenes role in the Irish bailout."

"...In Europe, on the other hand, Goldman Sachs has worked to accumulate a capital of relationships. But unlike its competitors, the bank has no interest in retired diplomats, highly placed national and international civil servants, or even former prime ministers and ministers of finance. Goldman’s priority has been to target central bankers and former European commissioners.

"Its main goal is to legally collect information on initiatives in the near future and on the interest rates set by central banks. At the same time, Goldman likes its agents to remain discreet. That is why its loyal subjects prefer not to mention their filiation in interviews or in the course of official missions.

"These well-connected former employees simply have to talk about this and that secure in the knowledge that their prestige will inevitably be rewarded with outspoken frankness on the part of those in powerful positions. Put simply they are there to see "which way the wind is blowing," and thereafter to relay exclusive information to the bank’s trading rooms."

Just keep telling yourself that nothing's changed, the oligarchy hasn't taken over, they don't really hold the levers of power, we don't need protest movements like Occupy.


Anonymous said...

Goldman Sachs moves in and tells the government of the day of all these great financial schemes they can use to save money or make money or just hide debt to enter into the European Union. Goldman Sachs (and other financial institutions) make a whole bunch of money. Then after a few years it all goes to hell and Goldman Sachs, having prepared for this, makes another whole bunch of money. Then maybe there's a bailout and they make yet another whole bunch of money.

Now they get their own people appointed into positions of direct power, since the former guys that got screwed know GS is out to screw them. I predict that in the near future Goldman Sachs is going to make a whole bunch of money. And the countries' citizens will get screwed. Again.

The Mound of Sound said...

One of the biggest, if not the biggest desk at GS these days is the food commodities desk. GS is globally gaming food supply which directly drives prices up leading to food insecurity that is destabilizing so many less than affluent countries. It's diabolical.