A 2011 Swiss study published in the well respected British “New Scientist” magazine, supports what we sort of knew about the world but didn’t know how or why : that an incredibly tiny number of big businesses really do control much of the global financial networks.
Importantly, as the article makes clear, this was a SCIENTIFIC study based on mathematics and computor modelling. It was NOT a political or financial study. There was no hidden agenda or predetermined outcome. The motivation was simply the scientific desire to answer a question about the structure of an entity, the entity in this case, being global wealth and the nature of its’ connectedness, if any.
Distilling down the article and the study to its pure numbers we find the following,
- 37 million companies worldwide – the study started with this global database.
- 43,000 of these were identified as global multinational corporations.
- 1,318 of these corporations account for 80% of global business revenues.
If 1,318 sounds like alot of companies, compare that to the number of companies in the very small nation I call home, New Zealand, where there are over 520,000 registered companies. And the study started with 37 million companies.
When the Swiss scientists drilled down further into their computer models and statistical data, they found an even more highly concentrated “super entity” consisting of just 147 companies.
These 147 corporations, 0.0004% of the worlds companies, or just 0.3% of all of the world’s 43,000 global corporations, (3 in 1,000) account for 40% of the world’s business wealth.
The Top 25 of the companies present at the world’s “inner core” of 147 are, as of 2011 –
1. Barclays Bank – UK based bank
2. Capital Group Companies – American based financial services company
3. FMR Corporation – American based financial services company
4. AXA – French based financial, insurance and investment services company
5. State Street Corporation – American based bank & financial services company
6. JP Morgan Chase & Co – American based bank
7. Legal & General Group – UK based financial services conpany
8. Vanguard Group – American financial services company
9. UBS Bank – Swiss Bank and financial services
10. Merrill Lynch & Co – American Financial Services company
11. Wellington Management – American Investment management group company
12. Deutsche Bank – German based global bank
13. Franklin Resources – American global investment services company
14. Credit Suisse Banking – Swiss global bank
15. Walton Enterprises LLC – an American based private wealth fund of the Walton family, founders of Walmart.
16. Bank of New York Mellon Corp – American based bank
17. Natixis – French based Investment Bank
18. Goldman Sachs Banking Group – American based Bank
19. T Rowe Price Group Inc – American Financial Services company
20. Legg Mason Inc – American Financial Services company
21. Morgan Stanley Banking – American Bank and Financial services company
22. Mitsubishi UFJ Financial Group – Japanese financial services company
23. Northern Trust Corporation – American based Financial services company
24. Société Générale Banking – French based Banking group
25. Bank of America Corporation – American banking group
You have never heard of many of the 25 companies right? That is probably just how they like it. It doesn’t have to be pointed out what business all of these corporations are in or which countries they mostly come from.
The “inner core” of 147 companies accounted 40% of the entire global business wealth. Each of the 147 corporations was completely owned by the other 146.
This super-connected structure means they could effectively function as one entity.
This Swiss study confirms what many people have always suspected. The existence of a super financial entity in which a critical bulk of the world’s wealth is found.
As the New Scientist article makes clear, the study and its conclusions offer no rationale as to WHY this tightly controlled super financial entity exists – only that it DOES exist.
It is possible that this super entity has been formed by entirely natural processes of association. In other words, because “money attracts money” or something of that nature. After all, the prominent people who run these corporations all have their primary holiday residences in the same regions of the south of France and therefore frequent the same exclusive Country Clubs. Where they do deals over brandy. Who knows. None of us are in this “big club” so we will never know what goes on.
It’s also quite possible that this super entity might NOT have been created naturally at all. It might well have been deliberately created over several centuries in fact, for the specific purpose of doing what it actually does in reality – creating, directing and controlling the bulk of the world’s wealth, and therefore, the enormous political power which that wealth yields.
But the answer to the question of how this global entity came about is not part of this Swiss study.
For now, its sufficient to realise that an extremely tiny, but immensely powerful financial entity does exist as a tiny core right in the heart of global affairs and it controls much of the world’s wealth and all that follows as a result of that power.
Is that a good idea? Judging by today’s endless wars, inequality, social decay and disproportionate wealth accumulation, I think not.
Here is the full article …