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The Confidential Memo at the Heart of the Global Financial Crisis

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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 http://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).

Follow Greg on Twitter: @Greg_Palast

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http://www.gregpalast.com

Author of the New York Times and international bestsellers, The Best Democracy Money Can Buy and Armed Madhouse, Palast is Patron of the Trinity College Philosophical Society, an honor previously held by Jonathan Swift and Oscar Wilde. Palast (more...)
 

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In May of 1974 the UN passed resolution 3201 and 3... by Bill Johnson on Thursday, Aug 22, 2013 at 3:30:07 PM
If leveling the global economic playing field was ... by Paul Repstock on Thursday, Aug 22, 2013 at 7:31:37 PM
and reduce the level of education so that the citi... by Susan Lee Schwartz on Friday, Aug 23, 2013 at 3:18:47 PM
And where are the republicans thinking they voted ... by jean labrek on Thursday, Aug 22, 2013 at 8:34:55 PM
Open your eyes When it comes to these issues ther... by Rob Kall on Friday, Aug 23, 2013 at 5:20:20 AM
Rob, I agree with you. I even say in my bio both p... by Bill Johnson on Friday, Aug 23, 2013 at 9:39:23 AM
And my interview with Palast, linked to at the top... by Rob Kall on Friday, Aug 23, 2013 at 10:56:01 AM
that Clinton asked Congress in September of 2000 t... by greg timmons on Friday, Aug 23, 2013 at 12:09:45 PM
Let's not forget what these banksters wanted of Bi... by Bill Johnson on Friday, Aug 23, 2013 at 12:47:06 PM
flawed Free Trade Policies that has caused our Cou... by greg timmons on Friday, Aug 23, 2013 at 1:59:11 PM
I campaigned very hard for Ross because I believed... by Pal Palsimon on Monday, Aug 26, 2013 at 8:45:35 AM
You put your finger on what most have never seen b... by Toby Seiler on Friday, Aug 23, 2013 at 9:40:49 PM
Again, (as below re Truman) I dont think that Clin... by Paul Easton on Monday, Aug 26, 2013 at 2:50:42 AM
A lot of idealistic people thought UN was great id... by Paul Easton on Monday, Aug 26, 2013 at 2:39:46 AM
all the darling young men just want to become good... by JoAnne VanDatta on Monday, Aug 26, 2013 at 1:55:49 PM
look what bloomberg did to the schools. Taking an ... by Susan Lee Schwartz on Friday, Aug 23, 2013 at 3:23:14 PM
I think some capitalists are more evil than others... by Paul Easton on Monday, Aug 26, 2013 at 3:09:30 AM
No need for satanic language... by JoAnne VanDatta on Monday, Aug 26, 2013 at 2:18:47 PM
I must be really really dense, as this end game ma... by James Tennier on Friday, Aug 23, 2013 at 5:44:56 PM
You can read all about their end game on the Georg... by Bill Johnson on Saturday, Aug 24, 2013 at 12:17:10 PM
I call it the "predator paradox"... by JoAnne VanDatta on Monday, Aug 26, 2013 at 2:34:08 PM
This is the main issue. We need to unite for a new... by Pal Palsimon on Sunday, Aug 25, 2013 at 3:34:54 AM
I didn't realize it was so easy to destroy the wor... by Donald Carl Isenman on Thursday, Aug 22, 2013 at 4:56:36 PM
And the whole key to this bankster rape of nations... by Bill Johnson on Friday, Aug 23, 2013 at 9:45:54 AM
57% of the regional banks that make the FED Reserv... by Toby Seiler on Friday, Aug 23, 2013 at 9:48:29 PM
... by Paul Easton on Monday, Aug 26, 2013 at 3:13:37 AM
I know I've beat this tired drum to pieces; Howev... by Paul Repstock on Thursday, Aug 22, 2013 at 6:37:18 PM
No more public banking except in NorthDakota, as t... by jean labrek on Thursday, Aug 22, 2013 at 8:40:12 PM
For the United States (and applies as well to mos... by Lance Ciepiela on Thursday, Aug 22, 2013 at 10:06:48 PM
Tell me how to get from here to there.... by Paul Easton on Monday, Aug 26, 2013 at 3:15:40 AM
you have to feed the horse. I wish the enormity of... by molly cruz on Thursday, Aug 22, 2013 at 11:17:58 PM
Great post.  I agree.  The enormity of t... by Chris Ritchie on Friday, Aug 23, 2013 at 9:38:03 AM
maybe its like the Stockholm Syndrone, we are the ... by Susan Lee Schwartz on Friday, Aug 23, 2013 at 4:08:00 PM
!... by Richard Clark on Friday, Aug 23, 2013 at 1:03:23 PM
I love your lyrical writing ---we are drowned in t... by Susan Lee Schwartz on Friday, Aug 23, 2013 at 4:23:06 PM
Money is no mystery these days. Money is generated... by Paul Easton on Monday, Aug 26, 2013 at 3:49:42 AM
        The plot is other, her... by molly cruz on Monday, Aug 26, 2013 at 7:27:18 AM
For all his great work, Greg Palast refuses to eve... by 911TRUTH on Friday, Aug 23, 2013 at 12:25:48 AM
Palast shows The 9/11 story is just a part of this... by Rob Kall on Friday, Aug 23, 2013 at 5:14:35 AM
What if the Constitution no longer applied? What w... by Lance Ciepiela on Friday, Aug 23, 2013 at 11:13:19 AM
@ 9/11 TRUTHCheck out this article by Israel Shami... by Chris Cook on Friday, Aug 23, 2013 at 3:13:09 PM
I marvel at what I learn from investigative journa... by Gary Brumback on Friday, Aug 23, 2013 at 8:02:38 AM
One gets glimmers from time to time of just how ba... by Gary Corseri on Friday, Aug 23, 2013 at 11:24:01 AM
"The Zion ist Jewish Role in Causing WW II" for en... by Toby Seiler on Friday, Aug 23, 2013 at 10:03:09 PM
We cant fight the army. The situation has to get b... by Paul Easton on Monday, Aug 26, 2013 at 4:06:30 AM
Isn't this the same reporter that insinuated that ... by Sandra Parson on Friday, Aug 23, 2013 at 12:18:51 PM
If  you're going to make an accusation  ... by Rob Kall on Friday, Aug 23, 2013 at 3:02:25 PM
With the help of Summers and Geithner (per the mem... by Richard Clark on Friday, Aug 23, 2013 at 1:10:27 PM
Alan Grayson is a disgrace to Florida. The man is ... by Bill Johnson on Friday, Aug 23, 2013 at 1:58:36 PM
I note that you attack him with name calling witho... by Rob Kall on Friday, Aug 23, 2013 at 3:04:09 PM
I am sorry Rob, I should have included some links.... by Bill Johnson on Saturday, Aug 24, 2013 at 10:18:05 AM
One of my links did not work for some reason. It w... by Bill Johnson on Saturday, Aug 24, 2013 at 10:43:02 AM
As for Grayson's previous road offenses, court rec... by Bill Johnson on Saturday, Aug 24, 2013 at 10:43:33 AM
The memo in question is fairly brief - I opened it... by Dennis Loo on Friday, Aug 23, 2013 at 2:03:53 PM
I would like to have it forwarded to me if it ever... by Pal Palsimon on Monday, Aug 26, 2013 at 9:19:43 AM
I think we all should say thank you to Palast who ... by Mark Sashine on Friday, Aug 23, 2013 at 4:10:25 PM
If you really want to see the end game, click on R... by Scott Baker on Friday, Aug 23, 2013 at 5:31:07 PM
  How much proof does one bagman USAG need to... by Howard Lewis on Friday, Aug 23, 2013 at 6:24:08 PM
My opinion was that Summers couldn't be trusted be... by Joy Zocco on Saturday, Aug 24, 2013 at 11:47:35 PM
We need to unite on some of these major issues. I ... by Pal Palsimon on Sunday, Aug 25, 2013 at 3:26:51 AM
Greg, is there a real understanding or does our bi... by Toby Seiler on Sunday, Aug 25, 2013 at 4:03:18 PM
who likes to talk about the joos. This is offensiv... by Paul Easton on Monday, Aug 26, 2013 at 4:37:38 AM
I am a Joo and anti Z word ist.... by Paul Easton on Monday, Aug 26, 2013 at 4:42:02 AM
... by Paul Easton on Monday, Aug 26, 2013 at 4:24:41 AM
...that we are what we are.  I am glad we hav... by Pal Palsimon on Monday, Aug 26, 2013 at 9:37:24 AM
If we can't stop being intolerant, rude, selfish a... by Pal Palsimon on Monday, Aug 26, 2013 at 1:20:39 AM
Why are they doing this?  What is their end g... by James Tennier on Monday, Aug 26, 2013 at 11:08:19 AM