Billionaires Up, America Down

by Holly Sklar
"When it comes to producing billionaires, America is doing great.

Until 2005, multimillionaires could still make the Forbes list of the 400 richest Americans. In 2006, the Forbes 400 went billionaires only.

This year, you’d need a Forbes 482 to fit all the billionaires.

A billion dollars is a lot of dough. Queen Elizabeth II, British monarch for five decades, would have to add $400 million to her $600 million fortune to reach $1 billion. And she’d need another $300 million to reach the Forbes 400 minimum of $1.3 billion. The average Forbes 400 member has $3.8 billion.

When the Forbes 400 began in 1982, it was dominated by oil and manufacturing fortunes. Today, says Forbes, “Wall Street is king.”

Nearly half the 45 new members, says Forbes, “made their fortunes in hedge funds and private equity. Money manager John Paulson joins the list after pocketing more than $1 billion short-selling subprime credit this summer.”

The China Model

By Rowan Callick
"From Vietnam to Syria, from Burma to Venezuela, and all across Africa, leaders of developing countries are admiring and emulating what might be called the China Model. It has two components.
The first is to copy successful elements of liberal economic policy by opening up much of the economy to foreign and domestic investment, allowing labor flexibility, keeping the tax and regulatory burden low, and creating a first-class infrastructure through a combination of private sector and state spending.
The second part is to permit the ruling party to retain a firm grip on government, the courts, the army, the internal security apparatus, and the free flow of information.

A shorthand way to describe the model is: economic freedom plus political repression."
Continued

More on The China Model:

WaPo: A Shining Model of Wealth Without Liberty
James Mann argues that China is increasingly a political model for the world, combining an authoritarian system with successful wealth creation.

He notes that the Chinese middle class is content with or at least acquiescent to the current system, indicating “that a nation’s elite can be bought off with comfortable apartments, the chance to make money, and significant advances in personal, non-political freedoms (clothes, entertainment, sex, travel abroad).”

Open Democracy: The China model

Fahrenheit 451

"A scheme to train firefighters in major cities to look out for terrorists has raised fears that their iconic standing in American society could be damaged.

Unlike police, firemen and paramedics do not need warrants to get into homes and other buildings during technical inspections of emergency facilities, making them particularly useful for spotting signs of terrorist planning.

The Homeland Security Department has been secretly testing a pilot scheme in New York in which firefighters are trained to identify suspicious material or behaviour. If successful, the programme will be extended to other large cities."

Telegraph UK

The Origins of the Overclass

By Steve Kangas

"The wealthy have always used many methods to accumulate wealth, but it was not until the mid-1970s that these methods coalesced into a superbly organized, cohesive and efficient machine. After 1975, it became greater than the sum of its parts, a smooth flowing organization of advocacy groups, lobbyists, think tanks, conservative foundations, and PR firms that hurtled the richest 1 percent into the stratosphere.

The origins of this machine, interestingly enough, can be traced back to the CIA. This is not to say the machine is a formal CIA operation, complete with code name and signed documents. (Although such evidence may yet surface — and previously unthinkable domestic operations such as MK-ULTRA, CHAOS and MOCKINGBIRD show this to be a distinct possibility.) But what we do know already indicts the CIA strongly enough. Its principle creators were Irving Kristol, Paul Weyrich, William Simon, Richard Mellon Scaife, Frank Shakespeare, William F. Buckley, Jr., the Rockefeller family, and more. Almost all the machine's creators had CIA backgrounds.

During the 1970s, these men would take the propaganda and operational techniques they had learned in the Cold War and apply them to the Class War. Therefore it is no surprise that the American version of the machine bears an uncanny resemblance to the foreign versions designed to fight communism. The CIA's expert and comprehensive organization of the business class would succeed beyond their wildest dreams. In 1975, the richest 1 percent owned 22 percent of America’s wealth. By 1992, they would nearly double that, to 42 percent — the highest level of inequality in the 20th century.

How did this alliance start? The CIA has always recruited the nation’s elite: millionaire businessmen, Wall Street brokers, members of the national news media, and Ivy League scholars. During World War II, General "Wild Bill" Donovan became chief of the Office of Strategic Services (OSS), the forerunner of the CIA. Donovan recruited so exclusively from the nation’s rich and powerful that members eventually came to joke that "OSS" stood for "Oh, so social!"

Another early elite was Allen Dulles, who served as Director of the CIA from 1953 to 1961. Dulles was a senior partner at the Wall Street firm of Sullivan and Cromwell, which represented the Rockefeller empire and other mammoth trusts, corporations and cartels. He was also a board member of the J. Henry Schroeder Bank, with offices in Wall Street, London, Zurich and Hamburg. His financial interests across the world would become a conflict of interest when he became head of the CIA. Like Donavan, he would recruit exclusively from society’s elite.

* Leaving one's profession to work for the CIA in a formal, official capacity.
* Staying in one's profession, using the job as cover for CIA activity. This undercover activity could be full-time, part-time, or on-call.
* Staying in one's profession, occasionally passing along information useful to the CIA.
* Passing through the revolving door that has always existed between the agency and the business world.

Historically, the CIA and society’s elite have been one and the same people. This means that their interests and goals are one and the same as well. Perhaps the most frequent description of the intelligence community is the "old boy network," where members socialize, talk shop, conduct business and tap each other for favors well outside the formal halls of government.

Many common traits made it inevitable that the CIA and Corporate America would become allies. Both share an intense dislike of democracy, and feel they should be liberated from democratic regulations and oversight. Both share a culture of secrecy, either hiding their actions from the American public or lying about them to present the best public image. And both are in a perfect position to help each other."

Continued

Michael Michalko

The New King of Spin

CNN Rupert Murdoch is stepping down from his role as chairman of the British broadcaster BSkyB to make way for his son James, long seen as the tycoon's favored successor to take over his media empire.

James Murdoch's tenure at British Sky Broadcasting was viewed as a success.

James Murdoch, who has been appointed non-executive chairman of BSkyB, will also head up the Asian and European operations of News Corporation -- the parent company, News Corp. said in a statement Friday.

Murdoch will remain as CEO of News Corp., the world's third largest media conglomerate after Disney and Time Warner.

Based in New York, News Corp. also owns the Fox network, which includes Fox News, as well as broadcasters and newspapers around the world, including the Times and Sun newspapers in Britain.

It recently acquired the Wall Street Journal and is in the process of the completing a takeover of the paper's parent company, Dow Jones.

YouTube: Murdoch Admits He Tried to Shape Public Opinion on Iraq

Puppet Masters

“This is not just another lobby organization”
Pehr G. Gyllenhammar

The European Round Table of Industrialists (ERT) is probably the most powerful lobby group in Europe, that can be described as a club of 45 European CEOs, whose companies account for more than 450 million workers world wide and combined annual turnover of 1350 billion Euros.

The European Round Table of Industrialists was born out of a growing preoccupation with the state of the European economy in the early 1980s. Frequently diagnosed as “eurosclerosis”, the symptoms were an evident lack of dynamism, innovation and competitiveness in comparison with Japan and the United States. European markets, with the exception of agriculture, were still national, despite the Single Market objective set by the Treaty of Rome in 1957.

ERT today brings together around 45 chief executives and chairmen of major multinational companies of European parentage, covering a wide range of industrial sectors. Individuals join at the personal invitation of existing Members, which confers on ERT membership a personal rather than corporate character.

From left to right (top) :Karl Beurle (Thyssen), Carlo De Benedetti (Olivetti), Curt Nicolin (ASEA), Harry Gray (United Technologies), John Harvey - Jones (ICI), Wolfgang Seelig (Siemens), Umberto Agnelli (Fiat), Peter Baxendell (Shell), Olivier Lecerf (Lafarge Coppée), José Bidegain (Cie de St Gobain), Wisse Dekker (Philips).

From left to right (bottom) :
Antoine Riboud (BSN), Bernard Hanon (Renault), François-Xavier Ortoli (EC), Pehr G. Gyllenhammar (Volvo), Etienne Davignon (EC), Louis von Planta (Ciba-Geigy), Helmut Maucher (Nestlé).

Members since 1983

Transatlantic Leadership for a New Global Economy

"The Atlantic Council promotes constructive U.S. leadership and engagement in international affairs based on the central role of the Atlantic community in meeting the international challenges of the
21st century.

For many years, the United States and its European partners were the unchallenged global economic leaders. They not only created the major international economic institutions but also represented the bulk of the wealth behind them. But traditional transatlantic economic leadership faces challenges on several fronts. Emerging economies last year for the first time ever surpassed the developed world in the total size of their national products – and they make up the lion’s share of total global growth.

At the same time, globalization has eroded western governments’ control over their own economies, making them increasingly vulnerable to economic forces outside their borders.

The power of “non- state actors” has grown – capital markets, multinationals, hedge funds, and private equity."

The Atlantic Council PDF

Project for a New American Century Statment of Principles