It's not the little cabal of confabs held by Summers and the banksters that's so troubling. The horror is in thepurpose of the "end game" itself.Let me explain:The year was 1997. US Treasury Secretary Robert Rubin was pushing hard to de-regulate banks. Thatrequired, first, repeal of the Glass-Steagall Act to dismantle the barrier between commercial banks andinvestment 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 controlderivatives.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 onesingle 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, an abstruse and benign addendum to the international trade agreements policed by the WorldTrade Organization.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 ginned-up by Summers and the banks would force all nations to accept trade in"bads" – toxic assets like financial derivatives.Until the bankers' re-draft of the FSA, each nation controlled and chartered the banks within their own borders. The new rules of the game would force every nation to open their markets to Citibank, JP Morgan andtheir derivatives "products." And all 156 nations in the WTO would have to smash down their own Glass-Steagall divisions betweencommercial savings banks and the investment banks that gamble with derivatives.The job of turning the FSA into the bankers' battering ram was given to Geithner, who was named Ambassadorto the World Trade Organization.
Bankers Go Bananas
Why in the world would any nation agree to let its banking system be boarded and seized by financial pirateslike JP Morgan?The answer, in the case of Ecuador, was
. Ecuador was truly a banana republic. The yellow fruit wasthat 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.