anonymouslove342-blog

[anonymouslove342-blog]

Bitcoin is US Dollar 2.0 Created by CIA | Kaspersky Co-founder

JANUARY 20, 2018

COVERT GEOPOLITICS

21 COMMENTS

There’s a reason why China, Russia and South Korea are about to shut down Bitcoin operations in their turf. It has been a CIA project from the very beginning. That explains why there’s no transparency as to who actually created it, and the impending shutdown is bringing bitcoin’s market value down to at least 40%, for now.

Natalya Kaspersky claimed that Bitcoin was designed to provide financing for US and British intelligence activities around the world. The expert called the cryptocurrency “dollar 2.0.”

The Bitcoin cryptocurrency was developed by “American intelligence agencies,” Natalya Kaspersky, CEO of the InfoWatch group of companies and specialist in cyber security systems, said during her presentation at ITMO University in St. Petersburg.

Kaspersky was giving a speech on information wars and digital sovereignty. Photos of her presentation entitled “Modern technologies – the basis for information and cyber-wars,” have been published on social media.

“Bitcoin is a project of American intelligence agencies, which was designed to provide quick funding for US, British and Canadian intelligence activities in different countries. [The technology] is ‘privatized,’ just like the Internet, GPS and TOR. In fact, it is dollar 2.0. Its rate is controlled by the owners of exchanges,” one of the slides read.

She also claimed that Satoshi Nakamoto (the pseudonym used by its founder or founders) is the name for a group of American cryptographers.

The presentation also claimed that a smartphone cannot be considered as a personal gadget.

A smartphone “is a remotely controlled device designed for entertainment, work and at the same time for spying on its owner,” according to Kaspersky, who is also the co-founder of Kaspersky Lab.

https://sputniknews.com/business/201801191060881605-kasperskaya-bitcoin-us-intelligence/

This revelation is part of the ongoing crackdown on the Deep State worldwide. The move towards the establishment of an AI-based totalitarian control in Western countries requires that everyone must use any of the cryptocurrencies so that their lives could be shut down whenever necessary.

The Deep State has no other choice but to keep using the same scheme of luring ambitious investors in with their teaser about the Bitcoin’s ability to reach $125,000 a piece by 2022, only to bring it down, so the cycle could begin again.

[anonymouslove342-blog]

Conspiracy News: Khazarian Mafia Updates, and President Putin established Checkmate on the West.

The Khazarian mafia faction that has been trying to start World War III and kill 90% of humanity is now on its last legs, multiple sources agree. The clearest sign of this was an executive order and a 636-page annex issued on March 1 by U.S. President Donald Trump and the Department of Defense that prepares the way for Nuremberg-style tribunals. https://www.whitehouse.gov/presidential-actions/2018-amendments-manual-courts-martial-united-states/ https://www.regulations.gov/document?D=DOD-2017-OS-0032-0003

The essence of these orders was that all U.S. civilians shall be subject to military justice and that the military will be able to hire non-military legal experts to help with the upcoming tribunals, according to Pentagon sources. The following clause on page 2 of Annex 2 is of particular interest, in that it describes one exercise of military jurisdiction as: “A government temporarily governing the civil population within its territory or a portion of its territory through its military forces as necessity may require. (Martial law).”

Pentagon sources explain that, “Trump signed Executive Order 3/1 to amend the court martial manual to get civilian legal help and prepare the public for Nuremberg II military tribunals of the cabal before truth and reconciliation.” It appears that at least some mass murderers are not going to get away with just saying “sorry.”

West Still in Shock after Putin’s Declaration of A Checkmate

MARCH 5, 2018

COVERT GEOPOLITICS

4 COMMENTS

Russia started the move for a checkmate when its military entered the Syrian theatre on September 30, 2015. It’s been 3 days now since Grandmaster Putin executed his Avant-garde speech to tell the West about its useless pursuit of military dominance all over the globe, but the latter is undoubtedly still in shock.

Just like the typical bully that walks away from a shameful realization of its own incapacities, the Deep State media could only churn up the typical response.

The bully conveniently omitted that it is the perennial aggressor, the whole time. What a shame, indeed.

Among the weapons that Putin revealed in his annual speech are:

A nuclear powered, highly evasive cruise missile with basically unlimited range;

A nuclear powered unmanned submersible with intercontinental range, very high speed, silent, highly evasive propulsion and capable of moving great depths;

A Mach 10 hypersonic missile with a 2,000 kilometer range (named: Kinzhal)

A new strategic missile capable of Mach 20 velocities (named: Avangard)

All of which have been mass produced, and are just the few samplers in the entire Russian arsenal. In fact, their own ambassador to the UK has already concluded that “We are endgame now.”

Even The Donald is silent about it. Both, Putin and Trump, are friends supposedly.

Trump, of course, is just a Deep State’s peaceful interface towards the East, while the CIA is still the aggressive entity wherever they are in the world, effectively maintaining the Janus doctrine which makes fools out of their own taxpaying population, which explain why only mixed signals can be expected from the White House.

Only a few days ago, the US Congress just approved the biggest ever budget for the war profiteers, in spite of the fact that the US barely survived two shutdowns in 2 months. This is happening under Trump who, like Obama, is also aiming for your guns.

The latter, of course, is justified considering that those privately owned guns are utterly useless since nothing has happened with it even now, except for some occasional selfies and groupies.

We have yet to see the promised mass arrest, although some sectors are already celebrating the “mass arrest of the pedophiles”, while no single video about the actual arrests from their own favorite YouTube channels has emerged, but only the usual talking heads.

We want to be proven wrong in that regard.

Moving on to the bigger picture, we need to factor in China’s impending inauguration of a non-US dollar dominated oil stock exchange on March 26th , where we get a perfect storm for the Deep State, which may warrant for more false flag operations in the days ahead.

That’s where the real actions are coming from, i.e. the East. That��s because the situation is still within the acceptable threshold for the West, i.e. the economic condition is still acceptable for most. But trade wars are moving in, too.

Can you see now, which of the two sides will prevail in the end?

Meanwhile, both Koreas seem in a great hurry towards achieving peace in the Korean Peninsula. They’ve been sending envoys visibly back and forth, in the last few days, and prior to the Pyeongchang Winter Olympics.

Trump says, North Korea must denuclearize first, but he is not forcing the issue beyond Twitter. Good Trump.

The Deep State can’t stop the peace efforts now that both Koreas and even Japan are looking up to Russia for military protection, of which the latter has recently responded positively.

We are indeed right at the endgame now.

The Iranians, however, have no right to pursue nuclear arms capability. Bad Trump. Too late for that anyway. The Iranians have already achieved nuclear capability and more, a long time ago. You see, when everyone has become superboy, nobody is. That’s from your own cartoon The Incredibles.

Mutual destruction, maybe that’s the one of the options we have at this stage in order to achieve global peace. But certainly, exceptionalism has just been rendered obsolete.

But “China and Russia are mere controlled oppositions in the bigger scheme of things. They are part of the New World Order, too.”

Well, I hate bursting anyone’s bubbles, but do you really think that China and Russia have forgotten the 30 million deaths, respectively, during the Jesuit Mao reign, and the Nazi siege of Leningrad, to which the Vatican was so silent about in WW2?

Are Putin and Xi that stupid really? Can anyone show us that these two leaders have indeed acted towards that direction in some ways?

What we see instead is that both Eurasian leaders are willing to work with a reformed Vatican for peace, but they are more than ready to defy the latter’s wishes whenever necessary. The two geopolitical giants have the upper hand, so why would they do otherwise?

So, why can’t the Americans just bypass possible COINTELPROs saying “just stay in your homes, we got you covered”?

Or, better still, why not stop paying taxes that go mostly to the Deep State war machine?

You’ll save a lot of lives in the Middle East that way. So, you really can do something about the world and have no reason not to.

With the Deep State still in shock about the multiple moves that will conclusively diminish its influence on other leaderships around the globe, isn’t it the most opportune time for the Western population to make their moves, too?

The era of unchecked, unwarranted Western military and political interventions abroad is being confronted head on and in no uncertain terms.

What is needed now is to for the Western population to reciprocate the actions of the East.

[anonymouslove342-blog]

MIT Course: Futuristic Vignette, AI Mood and Personality Module

Jennifer Nam E-11 Term Paper Vignette: After a relaxing lunch and the daily debrief with her children, it’s now time for business. Dr. Jane Brown has just gotten into the community self-driving car and started her call a moment ago with a hospital board member in Sweden. Though she and the board member (John) are each speaking in their native languages, the call is seamlessly translated. However, she decides it’s time to cut the call short when her AI mood and personality analysis module informs her that the board member is genuinely incredibly frustrated, and it may be better to bring up the delicate issue of funding another time. From this, an AI mood and personality analysis module can be constructed through a combination of brain-machine interface technologies. I will be applying 2 articles on brain machine interface technologies in the formation of an AI mood and personality analysis module: "Personality Trait and Facial Expression Filter-Based Brain-Computer Interface," and " Emotion Analysis using Brain Computer Interface." First, I would like to implement the following from the first article, where in this paper, we present technical approaches that bridge the gap in the research related to the use of brain-machine interfaces for entertainment and facial expressions. An emotion extraction filter is introduced in order to classify emotions on the basis of the users' brain signals in real time. Then, a personality trait filter is defined to classify extrovert, medium, introvert, and very introvert, from this, facial expressions sre derived from expression rates are obtained by an extrovert-introvert fuzzy model through its defuzzification process. Brain-computer interfaces use electrophysiological brain signals as meaningful data with which to manipulate remote devices or applications, in contrast to conventional interfaces such as keyboards, mice and touchpads. Electrical activity captured by a number of electrodes on the scalp is used to carry out feature extraction and pattern classification. Related applications have been as an alternative means of communication for motor-impaired people. Interesting, some studies on BCI have been recently extended into areas of entertainment such as interactive human-computer games for healthy users. BCI applications have appeared in entertainment and the game industry as a means to adapt and control applications using brain signals. Furthermore, techniques for automating the analysis of facial expressions are critical to the realization of more natural and effective human-computer interactions, which can add to existing studies of human emotion and affective computing and enhancing applications in a broad range of area. In this project we can utilize diagnostic tools such as electroencephalograms (EEG), electromyograms (EMG), and electrocardiograms (ECG) to detect and measure brain frequencies and electrical activities, and heart rate and electrical activities. In this paper, an emotion extraction filter (EEF) is then introduced, which can recognize emotions from EEG brain signals as well. Then, a personality trait filter (PTG) is designed to classify extrovert and introvert types from EEG brain signals using an EEG fuzzy model. In addition an extrovert-introvert (EI) fuzzy model is constructed on the basis of the intensity of the facial expressions of the different EI types. A novel method of creating facial from motion capture data is presented as well, which automatically extracts the contraction values of facial muscles. This enables us to realize real-time facial animation for a game player who is connected to an EEG device. In this study from the first article (I would like to incorporate this method of study in terms of emulation), they collected 210 samples of EEG data for the six emotions and the neutral expression (i.e. neutral, happy, surprised, angry, mean). To build an EI fuzzy model, weights for each EI type were derived from the pictures of the subjects' facial expressions. Subjects were instructed to visualize six universal expressions. After that, we took photographs of seven facial expressions (surprise, anger, fear, disgust, sadness, happiness, and neutral) of 30 subjects using a digital camera. The locations of the feature points were decided based on the movements of 21 facial muscles that occurred while people were making facial expressions. We also acquired an individual's motion data for six facial expressions from each participant using an optical motion capture system. Deriving muscle contractions from facial motion capture data. Essentially the alpha and beta frequencies were measured and determined with their corresponding emotion; the magnitude of facial expressions were found to be markedly distinct for facial expressions that included happiness, surprise, and anger, while the p-values of other expression appear as sadness, fear, and disgust. From this, we can construct a hat built of brain electrodes that measure, monitor, and detect alpha and beta brain frequencies similarly found in EEG diagnostic machines, then use the alpha and beta data to determine which is the corresponding emotion. Then utilize sensors in the phone that detect, monitor, and measure heart rate and blood pressure which have shown to increase during emotions of anger and stress, similarly found in EKG diagnostic machines. The electrode hat (hooked up to a smart phone wirelessly) and phone sensors can emit signals and analysis to the user on the other end of the phone to conduct an emotional analysis. We can measure and extract the facial muscle contractions that occurred while users make facial expressions in response to stimuli, and acquire an individual's motion data for six facial expressions from each participant using an optical motion capture system. We will be analyzing a combination of alpha and beta brain wave frequencies, and facial muscle contractions from motion capture data to determine its corresponding emotion. The next article goes even deeper in analyzing and testing different brain frequencies (expanding beyond alpha and beta frequencies tested in the article prior) with corresponding emotions. This article focused on recognizing emotion from the human brain via EEG signals. They developed a stress-reduction system to analyze EEG signals and classifying them into 5 main frequencies (alpha, beta, gamma, delta, and theta) and then change the emotional state of the subject, if subject is found to be stressed, by use of video and audio. Brain computer interface is like a pathway between wired brain and external device. It is commonly used for researching, mapping, assisting, repairing human cognitive or sensory motor functions. BCI works on the neurons in out brain, each nerve connected to one another by axons and dendrites. Then an electrical signal is produced by the difference in electrical potential in ions when neuron to neuron are as fast as 250mps. The basic mechanism of a BCI is to measure the minute difference in voltage between the neurons, then the signal is amplified and filtered. According to the second article, there are five type of electrical patterns of brain waves, which can be observed by researchers through electroencephalograph. Throughout you day, all the five waves will be displayed but one wave will always dominate the others as per the emotions. For example, while waking up you will have slower waves (alpha or theta) activity more as compared to beta wave. Beta wave is used for logical thinking and conscious though. There are two sets of beta-low and high. The high beta wave often expressed that the subject is subjected to stressed state which can be increased by the use of coffee or energy drinks and in order to decrease the beta wave, the method meditation has proved most effect. Alpha wave helps us calm down when necessary and promotes feeling of deep relaxation. It can be increased by the use of alcohol, marijuana, and anti-depressants. Gamma wave is used for learning, memory, and information processing. To attain high gamma wave, extreme meditation is recommended. Theta wave is used for daydreaming and sleeping. In order to increase the theta wave, the use of depressants is done. Delta wave is associated with the deepest levels of relaxation, restorative and healing sleep. In order to increase delta wave, the use of depressants and sleep is advised. These frequencies are recorded for the analysis of the emotional state. From this, we will measure and monitor for five different types of brain waves to determine what emotional state and response the users and test subject emits when subjected to a certain stimuli such as music, visual photography, and movies that influence distinct emotional responses. According to the second article, Neurosky developed a headset that adapts the EEG and EMG technology to fit in entertainment, automobile and health. This device uses inexpensive dry sensors for linking low-cost EEG signals whereas older devices use conducive gel between sensors and head. It also includes built in electrical noise reduction software/hardware, and utilize embedded for signal processing and output. The frequencies produced by the human brain are analyzed using the device NeuroSky and then sent to the computer. The emotional state produced by the brain activity is categorized using five frequencies. This type of headset can be used in the fictional vignette, where the user can analyze her boss's emotional state based on the brain frequencies and facial expressions. From this, we can construct a headset similar to NeuroSky's technology, and combine with a headset that is used for on phones for communication, where the boss (from the fictional vignette) will be using a headset connected to his phone to communicate with Jane (from the fictional vignette), and his headset will utilize Nuerosky's technology to measure and monitor his alpha, beta, gamma, delta, and theta brain waves. Then the boss's brain wave detector headset will transmit that information to his cellphone, which will then transmit the brain wave data to Jane's cell phone. In order to calm her boss, she can play music with delta waves on her phone via Youtube, for her boss to listen to. Delta waves are associated with the deepest levels of relaxation, restorative and healing sleep, and exhibits robust delta waves activity when a patient takes therapeutic medicinal treatment with anti-depressants; therefore the same anatomical and physiological neural responses occurs among delta wave stimulation in relation to sleep and anti-depressant medicinal treatment. In terms of data integration, we will start with data curation and data cleaning, as data is invariably dirty, thus it needs to be cleaned and corrected. So the data will be curated based on the type of frequency, such as alpha, beta, delta, gamma, and theta wave frequencies (5 frequencies), and then the wave most prominent detected by the  headset will interpret the wave frequency and match it to its corresponding emotion. This is through the process of consolidation, which curates the data. The attributes of the emotions will be lined up and then undergo transformations so as the ETL tools give us a scripting language such as Python. Then Python scripts are written that convert IBM SA to IBM incorporated. The ETL vendors will provide a workflow so that we can define modules, and some programming code. However, if one wants to use 1,000 sources, then the technology is simply too intensive and is not going to scale, therefore ETL will not work. So in terms of data preparation tools, enterprise curation tools, and data lakes, these will be part of the future for the futuristic vignette in data cleaning, curation, and integration. For data preparation, we will utilize Informatica, which is a large ETL vendor which used to be called Sprinbok. Or other vendors may be used such as Rev Alteryx which is popular or Trifacta or Paxata, and through their machine learning processes are improving over time, self learning then improving executions according to their contexts. For data curation, we will use "Deep Dive" from Stanford (end to end pipeline) where is involves extraction, cleaning, and transformation. Involved with entity consolidation and schema consolidation. Given that data cleaning is complicated, we will need to run a collection of tools to clean appropriately according to the context. Running multiple tools to completely do thorough cleaning of the data, such as domain-specific tools and address-specific tools. We will utilize data curation tools which are vertical and specialize in some specific vertical domain such as functionally Tamr. The data curation tool will exhibit enrichment, where auxiliary data is integrated to customer specific domains which are reading brain wave frequencies in relation to mood and emotion. We will have specialized algorithms that work well in the vertical trajectory, with domain specific rules pertaining to emotions. We can conduct data integration at scale through procurement, then run some analytics on the data. For storage we will utilize cloud computing, with a provider, where several providers today offer databases as a hosted service, so the provider will set up and manage a database for us and conduct all of the administration. As the user, one will directly see and use the database. The cloud system provide easy access to large scale infrastructures that would otherwise be very hard to set up and operate in house. For example, if you need to store 100 terabytes of data, or if you need to launch 100 servers to do a computation, this can be quite a bit of set up and administration. Yet with cloud computing, it's possible to have all these factors set up and administered and have access to the resources right away and start trying out a computation. We can utilize Amazon S3 or simple storage service EC2, elastic compute cloud, which lets you store bytes and launch virtual servers to run computations. Google is another option. At the next level up, we will have hosted services that provide a higher level piece of software (optimal) and just host and manage it by the user. We can utilize Amazon's relational database servers or RDS, which has hosted versions of just database software, including for example MySQL or Oracle. In order to confirm that the database is up and running, highly available, we need to establish backups and replicate the data archives to data centers for disaster recovery in case one if the data centers shut down. With the database hosted on Amazon, Amazon manages all of these properties. We can utilize Splunk software for analyzing log files from servers that runs in the cloud, so when we point logs from servers to it, Splunk will analyze them and show interesting graphical representations of brain wave  frequencies and interesting things such as distinct or multiple emotions exhibited. We can utilize Tableau, a visualization software that lets us quickly explore and slice through data ( the hosted version). If in case there is too much data, we've got a volume problem and trouble storing it, and a velocity complication. With a data integration challenge. We have many options, such as business intelligence tools such as Business Object or Cognos, where we essentially run SQL analytics at scale and multi node column stores with sophisticated compression, the winning technical solution. Production data warehouses in the multi petabyte range run on hundreds of nodes everyday in production so this is feasible. Let's run analytics to log how many times people utilize this technology, where a record is added to a data warehouse, running a gigantic cluster with hundreds of nodes. The software will come out with updated recent versions to fix bugs and innovate features. NvRAM is going to be incorporated into the storage hierarchy in terms of nonvolatile memory, replacing Flash or augment Flash. It will be between the disk and main memory becoming a more complex storage hierarchy. We will have more flexibility with storage layout. The data scientists will run predictive models based on the frequencies, and integrate this into the software. Today in many domains, large data sets are inexpensive to collect and store, but unfortunately processing these data sets is requiring higher degrees of parallelism. So its very inexpensive to collect large amounts of data if you have an application that generates them. In order to read through terabytes quickly and efficiently end to end, we need to parallelize them. For the large computations we run at scale, from loading the data, transforming it, and indexing it into a format that enables fast computations it needs to be conducted in parallel. Complex analytics functions that might require custom code will also need to be parallelized over large clusters. We can program these large clusters similar to Google, where there are thousands of computers organized in racks with a fairly detailed topology that dictates which computer can easily talk to other ones. With applications that spread out across this whole data center to run their computations. We will put many nodes together to prevent probability of failures and faults. So any long-running computation will have ways to handle failures within the computers running it. To prevent stragglers, when a node hasn't failed but it simply running slower, we will utilize wide array of new programming models that have been developed. Parallel computing models designed to solve this problem. In the data-parallel models, the programmers will specify the operation that it wants the system to run on all the data, where the system schedules where the operation runs. It's even possible for the system to run parts of the operation twice on different nodes to recover from failure. MapReduce which is the model introduced by Google and popularized by the open source Hadoop platform utilizes this in terms of big data processing. We can express more types of computations efficiently through the system, building higher level systems compiled into programs such as MapReduce. We can utilize Spark, which supports in-memory data sharing between computations and build system on top of each other such as Shark, which does large-scale SQL queries. For specific domains of computations there are more specialized system we can choose from such as the Pregel computation model for large-scale graph processing. For large-scale, interactive SQL queries we can utilize Dremel. For real time processing, systems such as Storm and Samza may be utilized, a data-parallel modell used for a wide variety of applications. First they, extract, transform, and load (ETL workloads), taking data that arrives in potentially an unstructured format or an arbitrary external format, and transforming it into forms that enable faster queries for indexing, ad hoc queries etc. We will build a system that performs well while running on many cores in a large computer (scalability), in the multi-core system it will consist of partitions in the system with n cores going to infinity. Analogous to independent cores working in parallel with one another. If partitioning does not solve the scalability issue, we can apply a stack data structure that can perform lock-free reads (Read-Copy-Update). We can utilize a linear time algorithm for each frequency with its corresponding emotion, inputs encoded by n bits, distinguishing data that has a certain property such as a prominent brain wave frequency from other brain wave frequencies, then utilize classical approximation to find the correct output (the prominent brain wave frequency). For processing massive amounts of data we can utilize two algorithmic techniques: streaming and sampling. We will process the whole data set of brain wave frequencies, and then pick up the prominent brain wave frequency (the sample choice), performs computation, and the algorithm will perform the processing only on this sample (first step), reducing the amount of resources needed to perform the computation (sampling). The streaming algorithm touches all the data elements, then store some sketch or synopsis of the data. So instead of storing the whole data set, it would only store partial information, such as the prominent brain wave frequency. We will perform a discrete Fourier Transformation, a well known task in signal processing. This algorithm applies to data which is sparse, to signals which have a very small number of large coefficients in the spectrum. The coefficients in the prominent brain wave frequency (signals) will be selected, and the algorithms will run very efficiently because they will access only a few samples of data (the prominent frequency), running faster and more efficient than the Fourier Transform algorithm. In data compression for big data analytics, we will utilize techniques for learning of patterns from tiny coresets. We are going to efficiently extract data, the meaningful parts of data sets, such as the prominent brain wave frequency from the rest of the frequencies. Running an algorithm on a huge data set we have options, such as the technique coresets. We can extract data reliably in information retrieval through recall, which tells us the fraction of relevant instances classified correctly (the prominent brain wave frequency). The precision tells us the fraction of instances that were correctly classified. For pattern recognition, we can take the brain wave frequency signals and with our data-compression analytics that correspond to emotion, we can take that information and map it into real activity of human emotion and mood. How do we know frequencies/signals correspond to a particular emotion or mood? Through coreset in data compression. We will then implement a machine learning component into the module, where the computer programs learn from experience, with the use of theory algorithms. The algorithms will incorporate and detect brain wave frequencies, then match them to corresponding emotions. In order to build a secure computer system that handles large amounts of data, prevent cyber attacks, prevent confidential data to be corrupted, we will utilize the database storing approach. We have an application server and database server storing all of the data on disk. The application server is going to issue database queries in a language such as SQL over to the database server, and the database will return results to the application. We will utilize encryption, placing some sort of proxy in the middle between the application server and the database. The proxy is going to store a key, so whenever queries travel from the application server to the database, they'll first be intercepted by this proxy and all the data in those queries will be encrypted before being passed onto the database server. When the database server to the proxy, these results will be encrypted but the proxy will be able to decrypt them using its key and send the plain text data back to the application server. That component, the database server and the disk, never store plain text data, never have accesss to the decryption key, and even if compromised, attackers will not be able to decrypt plain text data and leak confidential information. This allows us to prevent threats even if the server happens to be compromised without having to enumerate all of the different avenues of attack. We will utilize CryptDB, specialized encryption schemes to efficiently execute database queries over encrypted data, order preserving encryption, and onions of encryption (fully homomorphic encryption). In terms of privacy and security systems, we will implement secure architectures, network security, secure programming languages, and system verification. Along with algorithmic solutions  such as key cryptography, multi-party computation, secret sharing, distributing trust, and computing on encrypted data. We will also discuss public policy issues in cybersecurity, such HIPAA and medical confidentiality. In terms of establishing computer security, system security, and hardware and operating systems architectures, we will utilize the verification of computer systems using mathematical methods, the design of secure programming languages, cryptography and the security of the network infrastructure. In terms of cybersecurity, we will adopt the philosophy we espouse at CSAIL, which is a holistic philosophy to match the holistic philosophy that the attackers have. In particular, we want a systems-wide architectural view of security that encompasses the diversity of threat models and the diversity of layers of abstraction that comprise computer systems. Security properties can't be isolated to a particular layer. Attackers aren't isolated to a particular layer. And so we are going to have to have a systems-wide architectural viewpoint that cuts across layers in order to build security from the ground up in our computer systems. The big advantage of building security from the ground up is that we can have a security by default paradigm that is going to allow us to remove program error as a source of vulnerability, because we've actually shown the security of our designs as we design them and through the process of implementation. The three examples that I'm going to describe to you fall into three different categories of defensive mechanisms, which will be incorporated into the cybersecurity system. The first is one of prevention. Preventing attack might be that you simply increase the difficulty of an attack, and an attacker goes somewhere else. Another way is to quickly isolate an attack to a particular component and quickly recover from it, because the isolation has allowed us to diagnose exactly what the attack has done to us in between the injection of the attack and the discovery. There are resilient systems that are capable of withstanding attacks, because the system has redundancy. Here we can implement BitLocker, a secure storage facility with web security, mobile phone security, and design of robust software that can recover from attacks and continue to provide useful services.

In order to prevent deputy confusion, we can eliminate deputy confusion through the paradigm of information flow tracking. Deputy confusion is when entities don't know who they're quite working for in terms of who is executing commands. In this exemplary vignette we have Jane's (the main character from the vignette) browser that is talking to a web application server on her phone. The web application server is going to be talking to Jane as well as many other users at any given time (such as her boss). The web application server has a SQL module inside of it that is going to interact with an application database. The application database is going to have Jane's data as well as a whole host of other users' data. In particular, Jane may be logged in to the application server the same time that John (her boss) is logged in. The application server knows about Jane and John, but the SQL module inside the application server combines John's data and Jane's data all in one conglomerate blob, and treats them the same when it talks to the actual application database. The SQL server and application database could be through of as confused deputies. Not only are the database modules confused deputies, but if we had an email server that the application server is interacting with, or a video server, these are confused deputies as well. They don't quite know who they're working- John or Jane. In order to implement the feature described, for each of the modules you have to render the module in a distinct way, depending on the access control associated with the particular person who view we're trying to discover. For the modules, do we use Jane's credentials or John's credentials? We prevent bugs and complications through information flowtracking. The basic idea is that we're going to add labels to data. We could label data by saying this data was Jane's data. It was typed by Jane. Or it was labeled by John's data, and written by John. Then we can implement the option where John's data can be viewed by Jane's and other users. There may be the other option that other data is not viewable by John's friends. Not only will we label data, we're going to conduct two other functions. We will filter data in such a way that privacy isn't violated. But data does get transformed as it moves through the system. And so we're going to have to process the data as it moves through the system and process the labels associated with that data as well. And finally, at the point where the data may be exposed on an output channel, which may be email or emotion, for example, or simply somebody's web browser window, we're going to have to potentially filter the data and block it from appearing is we think, or the system thinks, that there's going to be a privacy violation associated with the exposure of the data.

Incorporated into the CSAIL methodology is the Resin on Rails system. When Jane is connecting to her browser to the application server of the module, John may be sending commands over to the application server. Each command is going to have a policy object associated with it, such as when Jane was creating a user account for herself, there would have been a policy object attached to it. These policy objects are going to be processed in the system. As the data changes, the policy objects propagate with the data; there's another place that you have data coming into the system and that's where the database is read. Every time the database is read, we're going to have to attach policy object associated with each of the database entries. So that all of the inputs are going to have policies associated with their privacy levels. The rest of the functions will consist of processing the data and ensuring that the policy objects get propagated along with the data objects. Then we have to output the data. This may happen because the data is rendered on someone else's web browser, in this case Jane's friend, or it may be the case that we're going to write into the database. We're going to have to look at the data packets, evaluate the policy associated with it, and decide if it is to be blocked or not. Resin on Rails tags objects that come into the system, ensures that the tags or labels are propagated through the system, and makes sure that policies are checked before data is ouputted because that's where privacy violations can occur.

The next security mechanism is resilience under attack. Within encrypted computation, the trusted computing base of a system is the set of software and hardware components that the under needs to trust. If the TCB is secure, then the entire system is secure. It doesn't matter that components outside the TCB are compromised. The TCB for current systems includes the operating system, which happens to be about 20 million lines of code in most modern systems. So it's hard to imagine that this 20 million lines of code is completely bug free and completely trustworthy. The trusted platform module is a hardware component that attests to the veracity of operating system code. And since operating systems aren't guaranteed to be secure and they haven't been verified, the TPM does not really provide real security. The reason why we have so many security breaks is because of the size of the TCB, which brings us to the important question. Can we shrink the size of the TCB and trust less? With an operating system that's 20 million lines of code, there's going to be bugs in it. So it makes sense to trust less and shrink the TCB to the point where you have many fewer lines of code to trust. One way to shrink the size of the TCB is to trust nothing on the server side, which we will implement. We will have to augment tamper resistance processors to protect against this class of attacks where privacy is leaked through memory access pattern analysis. The Ascend Processor, which was just built at MIT will be utilized, and it accomplished this goal of completely obfuscating accesses to memory through a concept that's called oblivious random access memory. The processor could be running on trusted software under the aegis of an untrusted operating system and would still not leak privacy associated with any that it's computing upon. For example, we could be running malicious software under a malicious operating system, and an adversary who's imply looking at the pins of ascend, will not be able to discover anything about the data that is being computed upon inside of Ascend Processor. The Ascend Processor eliminates leakage across it pins by functioning in three ways. First, all of the data that enters the processor is encrypted using a secret key that is only known to the client and the processor. Second, when the processor making memory accesses, it is doing so in an obfuscated fashion, using oblivious random access memory. This is a particular protocol that guarantees that there is no leakage that is possible through the memory access patterns. Finally, to ensure that there's no timing leakage whatsoever, the processor makes periodic memory accesses at specific times throughout the entire computation. The adversarial competition, itself runs for a fixed period of time. Using these three mechanisms, we can prove security of this Ascend Processor and guarantee that the clients Jane and John have no privacy leakage whatsoever.

Retro at CSAIL will be incorporated into the system, as it functions by recording the history of all computations in the machine in a very fine grained fashion for cyber attack recognition and monitoring purposes. Retro tries to minimize the amount of damage that is caused by the attack, and also minimize the amount of work that the user has to do to recover. Inside the machine, it computes just like any other computer, although its memory is special so that you can't tell anything from the memory either. But everything that comes in and out is encrypted. And so you're guaranteed privacy, unless somebody can break the encryption. Breaking the encryption can be very difficult. Now, a third thing that processor can do for you is that it can enforce access policies. And to a very limited degree, today's machines do that as well. So every page of virtual memory, for example, has read, write, and execute bits on it that control what the machine can do with those particular pieces of data.

We will implement Multics with rings, which are many level of permission for access to the emotional and mood module (creating privacy and security measures). So Multics introduced an idea called rings. And the idea is that you have many levels of permission. Each one is more powerful than the one before it, with ring zero being the most powerful and the highest number ring being the least. You can change from one ring to the other by a mechanism called a gate call. And what that does is it lets you temporally execute one function at a different ring level. The permissions that are set up on a segment when you map it in are marked by what ring levels you have those permissions in. So you might be able to only read a file at level three, meaning three, two, one, and zero, but you would be able to write it at only a more privileged level, perhaps only at level zero, or maybe not at all. Similarly, some other user might have a different set of ring brackets, as they're called, for the same information. And so what this lets you do is in a very controlled way, for the duration of one computational step, to go from one level of privilege to another and then back. ideas about permissions and level of privilege. But in most machines that's really just the kernel versus user mode distinction. And finally, Multics had been programmed in a higher level language called PL1, and higher level language implentation will be encoded into the system.

We're going to examine examples of things like memory corruption, data disclosures, code injection, and a variety of new attack techniques that are a little bit bizarre, but I'll try to explain them so you can understand how they work. We will implement cybersecurity measures for this real case scenario that might possibly occur; here we will implement cybersecurity measures of protecting memory corruption. Let's start at the beginning-- memory corruption. This typically happens when your computer has been programmed to copy a block of data from one place to another. Most often to copy it from the network where a user is remotely talking to some server, and it copies data from the network buffers into some internal buffers of your program. OK. Well, that sounds perfectly innocuous. And so if we try to copy A here over C, well, it does just that and there's no problem. But now let's look at another case. Here we have two data structures that are next to each other, C and D. Again, the attacker crafts an attack in which a large segment of memory is copied, but the last part of it overwrites the return pointer. And that winds up pointing to a location of his choosing. So if he knows your memory layout, he can cause your program to jump to some piece of code that he wants executed rather than one that you want executed. Now, there's an elaborated version of this technique called return-oriented programming. And this is a bit bizarre. It was invented because current machines have protection against executing pages that have been written on. And so if I write code into a machine, that page is no longer executable and a code injection attack is no longer possible. But here's the thing. You have something like 45 million lines of code in your machine. There's plenty of code there. Why do I need to inject any? I just need to make the machine use your code for my purposes. So what I do as an attacker is, again, using an overflow technique, I overwrite the stack. And I overwrite it with data that winds up being pointers to short chunks of code. And these short chunks of code are called gadgets. So the solution, in short, is to add metadata to the data. And one way of thinking about that is widening the word so that associated with any piece of data is some metadata. The metadata tells us a few things that are critical. It tells us what type the data is. And it tells us who might own that data-- essentially the permission bits. That's an idea we've seen before in machines. So it's explicitly represented here as part of the metadata on every word in memory.

Now let's turn to another subject, that of information flow, and this is the subject of what information can get to whom. The goal here is to protect our information and make sure it doesn't get to places it shouldn't get to. The information for this vignette should travel between Jane and her boss John, utilizing the tag approach to information flow. The idea here again, is to have a tag. This could be in addition to the other tags we've talked about, or just using this for information flow. And usually this tag, in this case, is referred to as a label. A label might be any number of things. One easy way of thinking about this is, the label is simply the set of people who own this data. And you shouldn't be able to access this data unless all of those people have said you can. Another way of thinking of this label is it's a compartment, sort of in the way the Defense Department classifies data. And so unless you have secret clearance, you can't see secret data. As the data is combined in the ALU, the tags, or the labels, are combined by tag management unit. And so as a simple example, if I combine an unclassified piece of data with a secret piece of data, the result ought to be secret. Or, if I combine a secret piece with a high secret, then the result ought to be top secret. In addition, the processor is always running on behalf of somebody, and we represent that in a new register that's added to the processor architecture. This register is referred to as the principal register. It keeps track of who the principal is, that is, who is the processor running on behalf of right now? That principal could be a person. It could be a person in a very specific role. Or it could be part of the operating system, or part of the operating system acting in a very specific role. We have a lot of freedom in how we play with these two things, principals and labels. So an example policy would be, let's say I have a compartment of data that I'm willing to share with my friends. And let's say that John also has a compartment of data that he's willing to share with his friends. If some computation takes a piece of data from each of those two compartments and puts it together, then the label ought to say that this is data that can only be accessed by friends of both me and John. If the principal's John, and we're trying to add two pieces of data, and one piece comes from my compartment and one piece comes from John's compartment, then the rule says it's OK to do this, but the result should have a tag that says it's data that has to be OK'd by both John and Howie. So these are the three building blocks of the representation we're building into the machine. We have principals, we have compartments, and we have rules. Now the rules can be managed by software. They don't have to be wired into the machine. But they have to be enforced on every cycle. Another idea that came out of the SAFE project, a project I mentioned earlier, was the idea of doing all of this in a programmable hardware scheme, where we have rules in software that are cached inside the hardware in a special cache. And what we do on every cycle is, we combine a lot of fields here. We look at who the principal is, we look at the labels of both pieces of data that are being computed on, we look at what the instruction is that we're about to execute, and we also look at its label. And finally, the instruction counter itself also has a label on it.

In terms of privacy, the corporation who uses this technology can save the patient's information in a private cloud for the corporation. Furthermore, this technology would be considered a diagnostic medical device, and all medical information is protected by HIPAA and is therefore confidential. For diagnostic purposes, they could save the information to an electronic medical record software system that is protected and encrypted. If the technology is utilized and applied in the medical sphere, HIPAA confidentiality protects the privacy. However, if the technology is used for other commercial areas such as entertainment, gaming, advertising, and movies, the information is not protected by HIPAA. For instance, gaming and movie companies can construct games and movies with specific frequency sounds to emit a specific emotional response. References: 1) MIT E-11 Notes, Lectures, Videos 2) http://serialsjournals.com/serialjournalmanager/pdf/1500277566.pdf 3) http://journals.sagepub.com/doi/full/10.5772/55665

[anonymouslove342-blog]

Pharmacology and Obesity

Jennifer Nam BME-800 Special Research Problems The Obesity Epidemic and Weight Loss Medications: Phentermine and Bontril

Obesity is a medical condition in which excess body fat has accumulated to the extent that it may have a negative effect on health. Obesity is a leading preventable cause of death worldwide, with increasing rates in adults and children. In 2015, 600 million adults and 100 million children were obese. Obesity is more common in women than men. Authorities view it as one of the most serious public health problems of the 21st century. Obesity is stigmatized in much of the modern world, through it was once seen as a symbol of wealth and fertility at other times in history and still is in some parts of the world. In 2013, the American Medical Association classified obesity as a disease. In 1997 the World Health Organization formally recognized obesity as a global epidemic. As of 2008 the WHO estimates that at least 500 million adults are obese, and the percentage of adults affected in the United States as of 2014 is about 38% overall (35% of males and 40% of females). The rate of obesity also increases with age at least up to 50 or 60 years old and severe obesity in the United States, Australian, and Canada is increasing faster than the overall rate of obesity. Once considered a problem only of high income countries, obesity rates are rising worldwide and affecting both the developed and developing world. These increases have been felt most dramatically in urban settings. The annual revenue of the US weight loss industry, including diet books, diet drugs and weight loss surgeries is a $60 billion dollar industry. There are approximately 108 million people (out of 323.1 million people) on some sort of weight loss plan, almost 1/3 of the US total population. According to the Centers for Disease Control (CDC), more than one-third (36.5%) of US adults have obesity. Since 160, the number of Obese Americans has tripled, and six times more Americans are now extremely obese than 50 years ago. Obesity related conditions include heart disease, stroke, type 2 diabetes, back pain, arthritis, infertility, pulmonary disease, nonalcoholic fatty liver disease, gall bladder disease, gout, phlebitis, pancreatitis, dyslipidemia, hypertension, artherosclerosis, cataracts,and certain types of cancer, some of the leading causes of preventable death. The estimated annual medical cost of obesity were $1,429 higher than those of normal weight. The amount of added medical costs every year that are estimated to stem from obesity-related problems and co-morbidities is $190 billion per year. Its nearly 21% of total US health care costs. According to a study conducted by the Brookings Institution, obese American pay 105% more for prescriptions drugs compared to individuals who aren't obese. The Society of Actuaries estimates that US employers are losing $164 billion in productivity each year due to obesity-related issues with employees. Medicare and Medicaid are spending $62 billion every year on obesity-related costs. According to CDC demographics, non-Hispanic black have the highest age-adjusted rates of obesity (48.1%) followed by Hispanics (42.5%), non-Hispanic whites (34.5%), and non-Hispanic Asians (11.7%). In terms of obesity and socioeconomic status, according to CDC National Center for Health Statistics data brief, among non-Hispanic black and Mexican-American men, those with higher incomes are more likely to have obesity than those with low income. Higher income women are less likely to have obesity than low-income women. There is no significant relationship between obesity and education among men. Among women, however, there is a trend-those with college degrees are less likely to have obesity compared with less educated women. As the US has become a more developed nations, the prevalence of processed high calorie fatty-foods with low nutritional content, processed foods, instant low-cost Western fast-food commercialization (i.e. McDonalds, Burger King, Wendy's), and larger portion sizes have become widespread and apparent. Essentially, nutritious foods tend to cost higher than less nutritiously healthy foods in the US. There is a statistical correlation among income and obesity. As technological advancements have progressed such as computers and automation, and factories have moved oversees to underdeveloped nations, America is composed of the "service sector" economy that is increasingly sedentary which has contributed to less overall physical activity and obesity. The high calorie and low cost foods of the Western American fast food industry progression and growth into international markets could also explain why there is a rise in obesity in developing nations.

Prevalence of Self-Reported Obesity Among US Adults by State and Territory, 2016

According to the CDC, within the medical realm, obesity has been termed and defined as a disease, reducing social stigmas, as obesity is now classified as a disease. Further studies have also examined food addiction similarly comparative to alcohol or drug addiction in relation to activating physiological brain hormones of seratonine and dopamine (the experiential pleasure centers). A food addiction or eating addiction is a behavioral addiction that is characterized by the compulsive consumption of palatable (e.g. high fat and high sugar) foods- the types which markedly activate the reward system in human and other animals-despite adverse consequences. Psychological dependence has also been observed with the occurrence of withdrawal symptoms when consumption of these foods stops by replacement with foods low in sugar and fat. Sugary and high-fat food have been shown to increase the expression of DeltaFosB, and addiction biomarker, in the D1-type medium spiny neurons of the nucleus accumbens. In 2008 between US $33 billion and $55 billion was spent annually in the US on weight-loss products and services, including medical procedures and pharmaceuticals, with weight loss centers taking between 6 and 12 percent of total annual expenditure. Over $1.6 billion a year was spent on weight-loss supplements.

In this paper we will be discussing two pharmacological weight loss medications Phentermine and Bontril, how they function physiologically within the body, their safety and efficacy, side effects, and recommendations. Anti-obesity medication or weight loss drugs are pharmacological agents that reduce or control weight. These drugs alter one of the fundamental processes of the human body, weight regulation, by altering either appetite, or absorption of calories. Phentermine and Bontril are two weight loss medications that can be utilized for obesity for those who do not have CVD. The efficacy and the side effects are the factors obese patients take into consideration when choosing a weight management plan. Obesity is preventable and manageable. Phentermine is oral Phentermine Hydrochloride (HCL) sold for weight loss. It is in the Sympathomimetic family of appetite suppressants (used for the short-term management of exogenous obesity). Phentermine works by stimulating the hypothalamus gland and affecting certain neurotransmitters to decrease appeitite. The hypothalamus is the region of the brain that control the autonomic nervous system, regulating sleep cycles, body temperature, appetite, etc. Phentermine is usually prescribed for short periods of 3 months, as the effect of phentermine tend to wear off after some time, while sides effects remain. Phentermine also known as a, a-dimethylphenethylamine, is a psychostimulant drug of the substituted amphetamine chemical class, with a pharmacological chemical structure similar to amphetamine. Although Phentermine is not an amphetamine, they have a similar chemical structure, function similarly, and will reveal a false positive on a drug test. Given that Phentermine and Amphetamines are chemically similar and are stimulants, the medical applications and uses are similar. Amphetamine is a potent central nervous system stimulant that is used in the treatment of attention deficit hyperactivity disorder (ADHD), narcolepsy, and obesity. Amphetamine was discovered in 1887 and exists as two enantiomers: levoamphetamine and dexroamphetamine. Amphetamine properly refers to a specific chemical class, the racemic free base, which is equal parts of the two anatiomers, levoamphetamine and dextreamphetamine, in their pure amine forms. Historically, it has been used to treat nasal congestion and depression. Amphetamine is also used as an athletic performance enhancer and cognitive enhancer, and recreationally as an aphrodisiac and euphoriant (elevate moods). It is a prescription drug in many countries, and unauthorized possession and distribution of amphetamine are often tightly controlled due to the significant health risks associated with recreational use. Amphetamine, through activation of trace amine receptor, increases monoamine and excitatory neurotransmitter activity in the brain, with its most pronounces effects targeting the catecholamine neurotransmitters norepinephrine and dopamine. At therapeutic doses, amphetamine causes emotional and cognitive effects such as euphoria, change in desire for sex, increased wakefulness, and improved cognitive control. It induces physical effects such as decreased reaction time, fatigue resistance, and increased muscle strength. Larger doses of amphetamine many impair cognitive function and induce rapid muscle breakdown. Drug addiction is a serious risk with large recreational doses but is unlikely to arise from typical long-term medical use at therapeutic doses. Very high doses can result in psychosis (i.e. delusions and paranoia) which rarely occurs at therapeutic doses even during long-term use. Recreational doses are generally much larger than prescribed therapeutic doses and carry a far greater risk of serious side effects. Stimulants are known as drug "uppers", which is a category of drugs and products such as cigarettes (nicotine), coffee (caffeine), ephedrine, cocaine, diet medications (over the counter and prescription) amphetamines, and methamphetamines. About 83% of the population in the US intakes or uses some sort of stimulant from coffee, cigarettes, to medications.  Uppers are central nervous stimulants that temporarily increase mental or physical function or both. The word "uppers" is a colloquial term for stimulants that make you alert and enhance locomotion. Cocaine, MDMA, Ecstacy, amphetamines, methamphetamines, diet medications, all uppers, produce wide ranging effects by enhancing the activity of the central and peripheral nervous system. While some can reduce anxiety and elevate moods, others lead to euphoria. At the same time, these can also cause anxiety and other psychological disorders, conditions that they are meant to treat. The primary effect of uppers is due to the interference they create with levels of neurotransmitters that carry signals from and to the brain. Stimulants is an overarching term that covers many drugs including those than increase activity of the body, drugs that are pleasurable and invigorating, or drugs that have symphathomimetic effects. Stimulants are widely used throughout the world as prescription medicines as well as without prescription (either legally or illegally) as performance-enhancing or recreational drugs. Many stimulants exert their effects through manipulations of monoamine neurotransmission. Monoamines are a class of neurotransmitter relevant in reward, motivation, temperature regulation and pain sensation that include dopamine, norepinphrine, and seratonin. Stimulants usually block the reuptake or stimulate the efflux of dopamine and norepinephrine resulting in increased activity of their circuits. Similarly, seratonin-norepinephrine reuptake inhibitors are found in common Anti-depressant drugs such as Straterra, Cymbalta, and Effexor used to treat major depressive disorder, ADHD, chronic neuropathic pain, fibromyalgia, obsessive compulsive disorder. Stimulants are used in impulse control disorders such as ADHS and off-label in mood depressive disorder to increase energy, focus, and elevate mood. Stimulants are addictive, therefore,  there is a large demand for stimulants. For instance coffee with the stimulant caffeine is highly drank and sought out in everyday life, which is also addictive. The total economic impact of the coffee industry in the US in 2015 was $225.2 billion, where consumers spent $74.2 billion on coffee in 2015. In the illegal drug trafficking industry, estimates of $100 billion to $130 billion was made off of cocaine, and profits for adderall (prescribed for ADHD/ADD) were nearly $9 billion in 2012. Phentermine  was first introduced in 1959, and became part of the drug combination fen-phen that was withdrawn from the market in 1997 due to the fenfluramine component damaging people's heart valves. In 2012 a different combination drug, phentermine/topiramate was approved in the US. Phentermine is used for a short period of time to promote weight loss, if exercise and calorie reduction are not sufficient, and in addition to exercise and calorie reduction. Phentermine is approved for up to 12 weeks of use and most weight loss occurs in the first weeks. However, significant loss continues through the sixth month and has been shown to continue at a slower rate through the ninth month. Phentermine has some similarity in its pharmacodynamics with its parent compound, amphetamine, as they both are TAAR1 agonists, where the activation of TAAR1 in monoamine neurons facilitates the efflux or, release into the synapse, of these neurochemicals; at clinically relevant doses, phentermine primarily acts as a releasing agent of norepinephrine in neurons, although, to a lesser extent, it releases dopamine and seratonin into synapses as well. Phentermine may also trigger monoamines from VMAT2, which is a commong pharmacodynamic effect among substituted amphetamines. The primary mechanism of phentermine's action in treating obesity is the reduction of hunger perception, which is a cognitive process mediated primarily through several nuclei within the hypothalamus (in particular, the lateral hypothalamic nucleus, arcuate nucleuc, and ventromedical nucleus). Outside the brain, phentermine releases norepinephrine and epinephrine-also known as noradrenaline respectively-causing fat cells to break down stored fat as well. There is some similarity between phentermine and its parent compound known as amphetamine because they are both TAAR1 agonists in which the activation of TAAR1 in the monamines help in the releasing of the neurochemicals into the synapse. Phentermine acts as a releasing agent of norepinephrine in the neurons when the doses are quite relevant. But it releases dopamine and seratonin into the synapses too. The release of monoamine from VMAT2 is also triggered by phentermine. Phentermine decreases a person's obesity by the reduction in the hunger perception which is mediated through different nuclei present within the hypothalamus. Phentermine release of monamine from VMAT2 is also triggered by phentermine. Phentermine decreases a person's obesity by the reduction in the hunger perception which is mediated through different nuclei present within the hypothalamus. Phentermine releases norepinephrine and epinephrine outside the brain which causes the breakdown of fats and the fat cells. In 1959, phentermine first approval from the Unites States FDA as an appetite-suppressing drug. Eventually a hydrochloride salt and a resin form became available. Phentermine was marketed with fenfluramine or dexfenfluramine as a combination appetite suppressant and fat burning agent under the popular name fen-phen. In 1997, fenfluramine and dexfenfluramine were voluntarily taken off the market at the request of the FDA. Studies later showed nearly 30% of people taking fenfluramine or dexfenfluramine for up to 24 months had abnormal valve findings. Phentermine is still available by itself in most countries, including the US. However, because it is similar to amphetmine, it is classified as a controlled substance in many countries. Internationally, phentermine is a schedule IV drug under the Controlled Substances Act. In contrast, amphetamine preparations are classified as Schedule II controlled substances. A company called Vivus developed a combination drug, phentermine/topiramate that is originally called Qnexa and then called Qsymia, which was invented and used off-label by Thomas Najarian, who opened a weight loss clinic; Najarian had previously worked at Interneuron Pharmaceuticals, which had developed one of the fen-phen drugs previously withdrawn from the market. The FDA rejected the combination drug in 2010, then in 2012 the FDA approved it after Vivus re=applied with further safety data. At one time, one obesity specialist estimated that around 70% of his colleagues were already prescribing the combination off-label. Phentermine is marketed under many rand names and formulations worldwide including Acxion, Adipex, Duromine, Elvenir, Fasting, Lomaira, Panbesy, Qysmia, Razin, Redusa, Sentis, Suprenza, and Terfamex. According to the Mayo Clinic: Phentermine is an amphetamine-like prescription medication used to suppress appetite. It can help weight loss by decreasing your hunger or making you feel full longer. Like other prescription weight loss drugs, phentermine is intended to be used as part of an overall weight-loss plan. It is indicated for people who are obese, and who have failed to lose enough weight with diet and exercise along-not for people who want to lose just a few pounds. Common side effects: increased blood pressure, dizziness, dry mouth, sleeplessness, nervousness, and constipation. Phentermine isn't a good option if you have heart disease, high blood pressure, an overactive thyroid gland or glaucoma. It isn't for women who are pregnant, may become pregnant or are breast-feeding. Phentermine may produce cardiovascular, gastrointestinal, and CNS side effects; rare cases of pulmonary hypertension and cardiacvalvular disease. It should not be used by people who have a history of drug abuse, have cardiovascular disease, hyperthyroidism, glaucoma, or are pregnant, planning to become pregnant, or breastfeeding. It should not be taken by anyone taking a monoamine oxidase inhibitor. Drinking alcohol while using phentermine may cause adverse effects. A person can overdose on phentermine just like any other medicine. Some common symptoms of overdose are: hallucinations, panic, feeling aggressive, confusion, diarrhea, vomiting, irregular heartbeat, irregular breathing, seizures, fainting, feeling light headedness, overactive reflexes. Some major side effects of phentermine include dizziness, difficulty breathing, irritability, nausea, vomiting, constipation or diarrhea. You should inform the doctor is any of the following serious side effects occur: irregular heartbeat, sudden mood changes, uncontrolled muscle movement, change in sexual ability/interest, seizures, headaches, slurred speech, vision changes, weakness on one side of the body. Sometimes an allergic reaction can also be caused by this drug. You should inform the doctor at once if you sense any symptoms of a serious allergic reaction like dizziness, trouble breathing, allergic reaction, rashes, itching or swelling. The efficiency of phentermine is significantly reduced when it reacts with other drugs. About 460 different drugs can reach with phentermine. Some common drugs which can react with phentermine are Ambien, Prozac, singulair, vitamin D3, vitamin B12, lyrics, Nexium, Xanax or Zyrtec. Based upon clinical trial studies in the article, "Effect on Weight Reduction and Safety on Short-Term Phentermine Administration in Korean Obese People." The phentermine, an appetite suppressant has been widely applied in Korea since 2004. The aim of this study is to verify the effect of phentermine on weight reduction and the safety in Korean patients. This randomized, double blind, placebo controlled study had been performed between February and July, 2005, in Seoul on 68 relatively healthy obese adults whose body mass index was 25 kg/m^2 or grater. They received phentermine-HCI 37.5 mg or placebo once daily with behavioral therapy for obesity. The primary endpoints were the changes of body weight and waist circumference from the baseline in the intention to treat population. Mean decrease of both body weight and waist circumference in phentermine-treated subjects were significantly greater than that of placebo group. Significant number of subjects in phentermine group accomplished weight reduction of 5% or greater from the baseline and 10% or more. There were no significant systolic BP. Dry mouth and insomnia were the only statistically significant adverse events that occurred more frequently in phentermine group. Most side effects of phentermine were mild to moderate in intensity. Short-term phentermine administration induced significant weight reduction and reduction of waist circumference without clinically problematic adverse events on relatively healthy Korean obese people. Based on this study patients lost at least %5 of body weight, with minor side effects of dry mouth and insomnia that were statistically significant. A second clinical trial stated the following. The proportion for patients achieving clinically-meaningful weight loss ranges from 67-70% for top dose phentermine/topiramate-ER. Medications approved for long term obesity treatment, when used as an adjunct to lifestyle intervention lead to greater mean weight loss and an increased likelihood of achieving clinically-meaningful 1 year weight loss relative to placebo. By discontinuing medication in patients who do not respond with weight loss _>5%, clinicians can decrease their patients' exposure to the risks and costs of drug treatment when there is little prospect of long-term benefit. Phentermine, despite its approval by the FDA for short term use, is frequently prescribed off-label for longer periods. Phentermine is by far the most widely prescribed obesity medication in the US, with 25.3 million prescriptions dispensed to an estimated 6.2 million users between 2008-2011. Although it has a long history of us, there are few controlled trials of phentermine monotherapy for six months or more, and studies describing the ffect of phentermine monotherapy on weight and cardiovascular disease risk factors for more than one year are limited to case reports and case series. A meta-analysis of 6 studies ranging from 20 to 24 weeks found that patients using 15-30mg/d phentermine had a mean additional weight loss relative to placebo of 3.6 kg, with mean total weight loss of 6.3kg. The longest published placebo-controlled trial of phentermine lasted 36 weeks in 108 obese women treated with phentermine 30mg/day either continuously or intermittently (13kg) arms vs. 4.8 kg with placebo. However attrition was 41% and data were presented only for completers, which is likely to overstate efficacy. Among completers, transient symptoms of central nervous system stimulation such as insomnia, irritability, and anxiety did not differ between those receiving continuous (24%) vs. intermittent (27%) therapy, compared with 8% for those taking placebo. Several short term placebo-controlled studied of phentermine have shown elevations in pulse or smaller decreases in pulse and/or blood pressure than would be expected given the degree of weight loss. Phentermine/topiramate-ER was recommended for approval based largely on 2 one year Phase 2 clinical trials. All groups received a low intensity lifestyle program. All underwent does titration over 4 weeks to assigned dose followed by 52 weeks on drug or placebo. At the top dose, mean 1y weight loss was 10.9% vs. 1.6% of intial weight for placebo . 67% of patients given the top dose lost _>5% of initial weight and 47% lost _>10% of initial weight, compared with 17% and 7%, respectivetly for placebo. 84% completed their second year of treatment with sustained weight loss of 9.3% and 10.5% at the recommended and top doses, respectively, vs. 1.8% for placebo, and continued differences in many CVD risk factors. In addition there was a significantly lower incidence of progression to type 2 diabetes in the top-dose group (0.9%) vs. placebo (3.7%). An area of considerable concern, given that most users of obesity medication are women of reproductive age, is the potential for oral clefts in the offspring of women who became pregnant while taking topiramate. A risk evaluation and mitigation strategy (REMS) was developed to minimize the likelihood of pregnancy in women with reproductive potential that includes provider training, dispensing only via certified pharmacies, and supplying patient information regarding risks and the necessity of using effective contraception. Women with childbearing potential should have a negative pregnancy test prior to starting phentermine/topiramate-ER and monthly thereafter. A small increase in resting heart rate has been observed in the clinical trials of phentermine/topiramate-ER at higher doses, with more patients on top dose (56.1%) than placebo (42.1%)))) having increases of more than 10 beats per minute, leading to some concerns regarding its potential long term effect on CVD events. Phentermine/topiramate-ER was approved with a requirement for a post-marketing trial of to assess long term cardiovascular safety. The labeling recommends against prescription in patients with recent or unstable cardiac or cerebrovascular disease, and suggests regular monitoring of resting heart rate. Phentermine, an amphetamine congener, is the most widely used anti-obesity drug in the US. Although phentermine is the agent-of-choice among physicians specializing in obesity treatment by other physicians has long been curtailed because misapprehensions regarding phentermine safety. Concerns of phentermine induced adverse cardiovascular reactions and of phentermine-induced addiction are two fears that have had a profound negative impact on phentermine prescribing. Fear of phentermine adverse effects does not inhibit the use of the use of phentermine by obesity treatment specialists. A 2008 survey of prescribing practices found that 98% of bariatric medicine specialists used pharmacotherapy in treating obesity and that 97% of those prescribed phentermine as their first choice. The fear that phentermine has addiction potential appears to be a factor influencing curtailment of use. At the time phentermine was approved in 1959 the expectation were that it would prove to be addicting, although perhaps less so than amphetamine. These expectations were based on the chemical structural similarities between phentermine and amphetamine and on evidence in that phentermine stimulated spontaneous activity. No evidence suggesting the drug had human addiction potential compared in clinical trial conducted prior to approval. After 52 years of use there is no evidence in the peer reviewed medical literature to support the hypothesis that phentermine has significant human addiction potential. The weight loss efficacy of Phentermine that is prescribed to break down fat cells and suppress appetite may also have other explanations and benefits. Phentermine is chemically similar to amphetamines, and is a stimulant which is prescribed for patients with ADHD, pain, and major depressive disorder. Therefore, stimulants such as phentermine increase focus, energy, muscle activity, and create feelings of euphoria, an affective state in which a person experiences pleasure or excitement and intense feelings of well-being and happiness. Certain natural rewards and social activities such as aerobic exercise, laughter, listening to emotionally arousing music, dancing, romantic love, and the human sexual response cycle can induce a state of euphoria. Similarly, the activation of the brain's reward system and euphoria caused by phentermine can benefit patients who are food addicts and or overeat (binge). Furthermore benefit patients who overeat (emotional eaters) because of depression, ADHD, and mania. Also, obese patients who are depressed, have ADHD, or mania that are undiagnosed would benefit from Phentermine in its treatment and health management. The second weight loss medication is Bontril or Phendimetrazine which is a stimulant drug of three morpholine chemical class used as an appetite suppressant. Phendimetrazine functions as a prodrug to phendimatrazine, and approximately 30% of any given oral does is converted into it. Phendimetrazine can essentially be thought of as an extended release and less abusable version of phenmetrazine. Phenmetrazine acts as a norepinephrine-dopamine releasing agent (NDRA). Its structure incorporates the backbone of methamphetamine, a potent CNA stimulant. Whilest adding an N-methyl group to the structure of amphetamine significantly increases its potency and bioavailability, in case of phendimetrazine the added methyl group results in the compoung become virtually inactive, at least until the methyl group is removed by the body's metabolism. This results in a steady, continued activation of the drug in the body, both lowering abuse potential and allowing for once-daily administration. Phendimetrazine is a sympathomimetic amine, which is similar to an amphetamine. It is also known as an "anorectic" or "anorexigenic" drug. Phendimetrazine stimulates the central nervous system which increases your heart rate and blood pressure and decreases your appetite. Phendimetrazine is used a short-term supplement to diet and exercise in the treatment of obesity. Phendimtrazine may cause blurred vision or impair your thinking or reactions. Be careful if you drive or do anything that requires you to be alert and able to see clearly. Do not use phendimetrazine if you are pregnant. Do not stop using phendimtrazine sudddenly after long term use, or you could have unpleasant withdrawal symptoms. Do not se phendimtrazine if you have used an MAO inhibitor such as furazolidone, isocarcobaxid, phenelzine, rasagiline, selegiline, or tranylcypromine in the last 14 days. A dangerous drug interaction could occur, leading to serious side effects. You should not use this medication if you are allergic to phendimetrazine or if you have a history of heart disease, heart murmur or heart valve disorder, severe or uncontrolled high blood pressure, overactive thyroid, glaucoma, severe agitation or nervousness, if you have a history of drug or alcohol abuse, or if you are allergic to other diet pills, amphetamines, stimulants, or cold medications. People with weight related medical problems can also take this medication. Some other problems which are decreased in progression of the disease are high blood pressure, diabetes, shorter life expectancy, and heart disease. Bontril is a white and odorless crystalline powder. It dissolves in warm water and also dissolved in warm alcohol but it is insoluble in acetone, benzene, ether and chloroform. This drug has similar pharmacological activity as compared to other drugs of morphine class, which reduces obesity. When Bontril enters the body then a part of it enters the body and metabolizes into phendimetrazine which may stimulate the central nervous system and releases seratonin by targeting the hypothalamus part of the brain. The elevated levels of the neurotransmitter in the body result in high quality of blood glucose and the release of norepinephrine and epinephrine. These two neurotransmitters are responsible for glucose release from the liver and its transmission to muscle cells. This causes an increase in the rate of metabolism, suppresses the feeling of hunger and speeds up the weight loss process. The rate of the heart and blood flow in increased due to the energy which gets dissociated after the burning of fat. Bontril overdoes can happen just like any other drug. Some major signs and symptoms of an acute overdose of Bontril are confusion, restlessness, panic states, hallucinations, and belligerence. The central stimulation is usually followed by fatigue and depression. Some cardiovascular effects include vomiting, diarrhea, abdominal cramps or nausea. The poisoning can lead to coma, convulsions, or death. The overdose management of Bontril is mostly symptomatic. Bontril is sedated with a barbiturate. The use of rapid-acting alpha receptor-blocking agent should be considered if hypertension is marked. Bontril belongs to the Schedule III of controlled substances, which means that this drug can easily turn into an addiction. It is related chemically to amphetamines. This drug should only be used for a short term period because it can cause psychosis which can lead to schizophrenia. You should stop taking this medication quickly after the administration of high dosage when you suffer from extreme fatigue and depression. One major side effect of this drug is that tolerance is something developed due to this drug. Tolerance to the drug usually occurs within a few weeks. Some other major side effects of this drug include difficulty sleeping, dry mouth, irritability, vomiting, diarrhea, nausea, and constipation. You should inform your doctor immediately if you suffer from any of the following side effects: difficulty breathing with exercise, chest pain, fainting, swelling of legs and ankles, decreased ability to exercise. Some major nervous side effects include restlessness, dizziness, overstimulation, headache and tremors. Sometimes a person may suffer from mental episodes like flushing, swelling and agitation. Some moderate side effects of Bontril include: anxiety, decreased ability to exercise, fainting, feeling warmth, passing urine more often, redness of face, swelling in hands and feel, trouble thinking clearly, general weakness, pain or discomfort in neck arms and back. Clinical studies for Bontril and Phentermine have been conducted for comparative analysis. Phentermine was approved in a 56 week trial in which the patients were randomized to placebo or one or two doses of phentermine. The study results showed that patients who continued their study regiment for an addition 52 weeks lost about 9.3% and 10.5% of their body weight compared to only 1.8% weight loss in the placebo group. The main problem with phentermine were its adverse effects. The adverse effects of phentermine were more than the placebo group. Some common side effects included dry mouth, constipation or insomnia. Another study took place recently in which more than 3000 female patients over the age of 35 years were studied. There was no experimental data of the studies. The study was done based on the reports from the user reviews. Different information about the patients was gathered, like their age, gender, weight loss etc. through the social media and other tools. The results showed that both the drugs were more or less equal in their weight loss effects but it was found that Bontril had fewer side effects as compared to phentermine. So the researchers selected Bontril as a better drug out of the two because of lesser side effects. In other studies, the results of recent studies and clinical trials showed that both Bontril and Phentermine produce the same weight loss effect. However, the main difference noticed between these two potent drugs is the number of side effects. While the most frequently appearing adverse reactions to Bontril treatment include dry mouth, insomnia, fatigue and constipations. Phentermine causes a bigger number of downsides, such as uneven heartbeat, uncontrolled blood pressure, seizures, stomach problems, headaches, dizziness, nausea and multiple others. All in all, comparing Phentermine with Bontril, it is possible to say that these two weight loss drugs are the same and  effective and productive, though Bontril is a bit more beneficial in the side effects prospective. Both Bontril and Phentermine have clinical trial studies provide evidence that verify patient weight loss, and is FDA approved in its efficacy and safety. The $60 billion dollar weight loss industry that sells books, lotions, pills, and diets can be subject to false claims, therefore, questioning and undermining its proven effectiveness and safety. Unfortunately, there is no health insurance coverage, but the medications are affordable and cost around $40 a month. This also costs less than bariatric surgeries such as lap band and gastric bypass which costs $11,500 to $26,000 (most insurance companies won't cover unless state mandated) and have much more deleterious and risky adverse effects and complications (more invasive). Even if the $40 for weight loss medications are unaffordable, it is drastically less than the overall total medical costs of being obese and having its co-morbidities. I would like to further this research by conducting statistical analysis on other weight loss strategies, specifically weight loss surgeries such as the lap band surgeries, gastric bypass surgeries, and duodenal switch surgeries. In terms of a long term post-market study similarly conducted by regulatory agencies such as in the EU conducted 5 years post-market. Because the FDA is underfunded and understaffed, there is a lack of data on post-market studies that are long term conducted on weight loss medications and surgeries. I would like to conduct statistical analysis on the success rates, failure rates, long term efficacy states of patients and satisfaction, and side effects/complications rates. Then run a long term comparative statistical analysis of patient efficacy and satisfaction from treatments for weight loss medications vs. surgeries. Obesity is the 21st century epidemic that is spreading and rising, and providing the population and patients with tools, strategies, and beneficial data will assist them in overcoming obesity challenges to improve their quality of health and life.

References: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2687747/ https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3928674/ https://clinicaltrials.gov/ct2/show/NCT01402674 https://www.mayoclinic.org/drugs-supplements/phentermine-oral-route/description/drg-20075169 https://www.mayoclinic.org/drugs-supplements/phendimetrazine-oral-route/description/drg-20075140 https://www.cdc.gov/obesity/ https://www.franchisehelp.com/industry-reports/weight-loss-industry-report/ http://abcnews.go.com/Health/100-million-dieters-20-billion-weight-loss-industry/story?id=16297197 https://www.marketwatch.com/story/10-things-the-weight-loss-industry-wont-tell-you-2014-01-10 https://my.clevelandclinic.org/health/articles/attention-deficit-hyperactivity-disorder-stimulant-therapy https://www.mayoclinic.org/healthy-lifestyle/fitness/in-depth/performance-enhancing-drugs/art-20046134 https://www.drugs.com/drug-class/cns-stimulants.html

[anonymouslove342-blog]

The Network of Global Corporate Control: Hegemonic Economies and the Bank for International Settlements

The Network of Global Corporate Control: Hegemonic Economies

The structure of the control network of transnational corporations affects global market competition and financial stability. We present the first investigation of the architecture of the international ownership network, along with the computation of the control held by each global player. We find that transnational corporations form a giant blow tie structure and that a large portion of control flows to a small tightly knit core of financial institutions. This core can be seen as an economic “super entity” that raises new important issues both for researchers and policy makers.

A common intuition among scholars and in the medical sees the global economy as being dominated by a handful or powerful transnational corporations (TNCs). However, this has not been confirmed or rejected with explicit numbers. A quantitative investigation is not a trivial task because firms may exert control over other firms via a web of direct and indirect ownership relations which extends over many countries. Therefore, a complex network of analysis is needed in order to uncover the structure of control and its implications. Recently, economic network have attracted growing attention (e.g. networks of trade, products, credit, stock prices and boards of directors. This literature has also analyzed ownership networks but has neglected the structure of control and its implications. Even the corporate governance literature has only studied small national business groups. Certainly it is intuitive that every large corporation has a pyramid of subsidiaries below and a number of shareholders above. However, economic theory does not offer models that predict how TNCs globally connect to each other. Three alternative hypotheses can be formulated. TNCs many remain isolated, cluster in separated coalitions, or form a giant connected component, possibly with a core periphery structure. So far, this issue has remained unaddressed, notwithstanding its important implications for policy making. Indeed, mutual ownership relations among firms within the same sector can, in some cases jeopardize market competition. In terms of competition, concentrated wealth and power within a company can be exhibited through political power creating policies to establish certain economic activities illegal (banning competition), and distributing economies, trade, and labor/work through calculated designation (as seen where certain economies are only allowed in certain areas/nations) propped up and supported by politicians and policymakers under the influence of donors with specific business motives. The wealthy can also utilize and apply military brute force and weaponization in suppressing and destroying populations, unions, and controlling the masses. Policing nations and populations similarly to a fascist Orwellian network of control. Moreover, linkages among financial institutions have been recognized to have ambiguous effects on their financial fragility.

Verifying to what extent these implications hold true in the global economy is per se an unexplored field of research and is beyond the scope of this article. In terms of ownership and control relations, if a shareholder has ownership exceeding a threshold (e.g. 50%), it has full control (100%) and the others have none (0%).

In terms of methodology, ownership refers to a person or a firm owning another firm entirely or partially. Let W denote the ownership matrix, where the component Wij E(0,1) is the percentage of ownership that the owner or shareholder i hold in firm j. If in turn, firm j owns Wjl share of firm l, then firm i has an indirect ownership of firm l. In the simplest case this amounts trivially to the product of the shares of direct ownership WijWjl. If we now consider the economic value v of firms (e.g. operating revenue in USD), an amount Wijvj is associated to i in the direct case, and WijWjlvl in the indirect case. Each shareholder has the right to a fraction of the firm revenue (dividend) and to a voice in the decision making process (e.g. voting rights at the shareholder meetings). Thus the larger the ownership share Wij in a firm, the larger is the associated control over it, denoted as Cij. Control Cij is usually computed from ownership Wij with a simple threshold rule: the majority shareholder has full control. In analogy to ownership, the extension to a generic graph is the notion of network control: ci net=SigmaCijvj + SigmajCijcjnet. This sums up the value controlled by i thought its shares in j, plus the value controlled indirectly via the network control of j.

Because of indirect links, control flows upstream from many firms and can result in some shareholders becoming very powerful. The computation of cnet, in the basic formulation detailed above, severely overestimates the control assigned to actors in two cases: firms that are part of cycles (or cross-shareholding structures), and shareholders that are upstream of these structures. In this paper, by building on, we develop a new methodology to overcome the problem of control overestimation, which can be employed to compute control in large networks.

Results: We start from a list of 43,060 TNCs identified according to the OECD definition, taken from a sample of about 30 million economic actors contained in the Orbis 2007 database. The network of all the ownership pathways originating from an pointing to TNCs. The resulting TNC network includes 600508 nodes and 1006987 ownership ties.

Network topology costs of a bow-tie of in-section (IN), out section (OUT), strongly connected component or core (SCC), and tubes and tendrils (T&T).

The computation of control requires a prior analysis of the topology. In terms of connectivity, the network consists of many small connected components, but the largest one (3/4 of all nodes) contains all the top TNCs by economic value, accounting for 94.2% of the total TNC operating revenue. A generalization is a strongly connect component (SCC), i.e. a set of firms in which every member owns directly and/or indirectly shares in every other member. This kind of structures, so far observed only in small samples, has explanations such as anti-takeover strategies, reduction of transaction costs, risk sharing, increasing trust and groups of interest. No matter its origin, however, it weakens market competition. The second characteristics is that the larges connect component contains only one dominant strongly connected component. In other words, this is a highly knit group of corporations that cumulatively hold the majority share of each other. Only a few of the national ownership networks are bow ties, and, importantly, for the Anglo-Saxon countries, the main strongly connected components are big compared to the network size. Based on the Anglo-Saxon countries, headquarters of financial institutions and banks are located in Anglo-Saxon countries, with majority of their economies in the financial sectors which make up the strongly connected components in the network.

Concentration of Control: We thus compute the network control that economic actors (including TNCs) gain over the TNCs’ value (operating revenue) and we address the question of how much this control is concentrated and are the top control holders. It should be noticed that, although scholars have long measured the concentration of wealth and income, there is no prior quantitative estimation for control. In contrast, we find that only 737 top shareholders accumulate 80% of the control over the value of all TNCs (see also the list of the top 50 holders). The corresponding level of concentration is n1=.61% to be compared with n2=4.35% for operating revenue. Income distribution in developed countries with n3-5-10% and corporate revenue in Fortune 1000 (n4-30% in 2009). This means that network control is much more unequally distributed than wealth. In particular, the top ranked actors hold a control ten times bigger than what could be expected based on their wealth.

Based on this, it is evident that control, power, and wealth are deeply concentrated amongst 737 top shareholders, who control 80% over all of the value of transnational corporations out of a world population of 7.4 billion people. Furthermore, this article illustrates that the top ranked actors or shareholders control ten times more than what is based on their wealth, exerting power and control.

In terms of review, the banking and financial institutions essentially control and exert power and dominance through their ability to create money, control the amount of money in circulation, and create resources of money that control how much and what goods and resources people can own and buy. In terms of centralized power, in terms of the “big banks” and the top 50 financial institutions that control and own majority of the global economy share the same owners and top shareholders. The banks control and create money through not only the printing of money, but also through the creation of credit, loans, and interest, and through raising or lowering interest rates the banks can control the amount of money in circulation. Also through the creation of credit and loans, comes with it debt, another monetary mechanism of control over the populations and resources and goods. Furthermore, the banks essentially control the governments (policymakers) where the in the cycle of borrowing money and credit through national spending, the US government purchases Treasury bonds (loans) with interest from the private banks in national debt spending, thus creating another cycle of monetary indebtedness to the banks and financial control over the population. Allowing banks the ability to create the money supply has many serious consequences including the fat that the very unit of exchange starts out life as an interest-bearing debt. Money is just another word for debt in so many ways and it cannot pay back debt because it is debt and has been from the moment it was issued. Another foundation effect of having private banks create money through the issuing of credit is this gives them total control over whether an economy, local, national, or global, is expanding or contracting. The banks also control and influence the value of money, the value of credit and loans, the value of debt and interest bearing loans, exchange rates of money, the value of money and its purchasing power, inflation, and deflation. Through the creation and control of money essentially leads to control over the economy, which can create or destroy an economy. Furthermore the banks and financial institutions influence and control monetary policies, and essentially the “rules of money and the economy” through not only political lobbying, but also through the Federal Reserve Board which was started by the Rothschild banking family and another global monetary policy making bank the Bank for International Settlements. Essentially the Federal Reserve Board, the Bank for International Settlements, and private banks on the top 50 list share the same owners (the top shareholders).

A Global Corporate Establishment?

We have a sophisticated empirical study which indicates that TNCs globally are dominated by just under 300 mostly financial TNCs. Admittedly these results are biased by problems with data and method, but the revealed pattern of ownership and control is so clearcuts that it seems very unlikely that it is merely an artefact of the data or methods used. It is important of course to note that firms can also influence each other by means such as market power, provision or withholding of loans, and dependence relations created by their relative positions in commodity chains.

This pattern of ownership and control can be readily explained: Some firms have money to invest in shares, in particular banks and other financial entities, while others issue shares in order to obtain money to invest in production. It is therefore not surprising that there is a distinction between CORE and IN firms, on the one hand, and OUT firms on the other. The enormous shareholding of many CORE and IN firms can be explained by the financialization of business that has taken place over the past two decades or so. The existence of a single core of interconnected firms can be explained by globalization, that, by the idea that separate national core (where they exist) are progressively amalgamating- from which it follows that the core would be expected to grow as globalization proceeds further. 
 One implication of the observed pattern is convergence in the policy views of core TNCs. A quick analysis of the membership of major business organizations suggest that core dominance of TNCs in general had led to the development of distinctive core policy views that have become the orthodoxy in mainstream business organizations. An a look at whether the boards of core TNCs are linked more to each other than to other TNCs suggests that while the boundary between the core and rest may be ill defined, it is meaningful.

Although it is a bit early to place much reliance on these findings, they do provide considerable empirical support the the ideas that a global corporate establishment that is not formally organized but does have shared policy views, spokespeople (the business organizations dominated by core TNCs) and, given their shared policy views, quite possibly a tendency to take concerted action in relation to governments and other public authorities.

We must expect that CORE TNCs do have some degree of influence on the TNCs they control. One way would be by causing a homogenization of views and actions among CORE and OUT TNCs. If a CORE firm controls an OUT firm or another CORE firm, it can oust the managements of these firms if they stem too far out of line. They may also be able to intervene directly in management decisions. This means that over time the views and actions of controlled firms will tend to become more similar to those of the firms that control them. It follows that we should expect the policy preferences of CORE and OUT firms to become more similar over time. Government policies relating to business are a constant focus of attention for TNCs as they try to get the best deal they can from governments. It would be surprising if any homogenizing effect left attitudes to government policies untouched. We should therefore expect the policy preferences of OUT firms to become more CORE-like, and the preference of CORE firms to converge.

The longer the core has been in existence, the more pronounced one would expect this effect to be. Ans it is possible that the core has existed for a long time. Although we have no evidence on this, and no doubt firms enter and leave the core on a regular basis, it is noticeable that the core is dominated by firms based in the current and former centers of world power: the US and Europe. This association with political power may be no accident, in which a case a TNC core associated with Europe and the US may have existed for decades is not longer.

To the extent that the policy preferences of CORE TNCS and their controlled TNCs converge, we would expect them to become more likely to react similarly to what national governments do. One consequence of this could be a tendency to shift investment in the same direction at the same time in response to policy developments. This would mean bigger investment flows in response to the actions of governments and therefore bigger rewards for governments that do what TNCs want and more severe sanctions for those that don’t.

Based on another study, it appears that in 2007 a group of 295 transnational companies (TNCs) connected to each other by cross-shareholdings held sufficient shares in other TNCs to enable them to control 38 percent of the total operating revenue of the 43,060 TNCs worldwide covered by the study. This finding that 0.7% of TNCs controls nearly 40% of TNC income depicts a concentration of control that is wholly unanticipated.

Data was aggregated by the Orbis company database. This gathers together and organizes publicly available information from company annual reports, correspondent with companies, filings with the US Securities Exchange Commission, stock exchange records, national level providers of financial information from annual accounts filed with official registers, company websites, phone calls to companies, and press news. By 2007, it covered 30 million firms.

The study picked out 43,060 TNCs on the databased, defined as firms which hold at least 10% of the shares of a firm located in another country, and trace the patterns of their shareholdings in order to put together a map of all the ownership pathways originating from and pointing to TNCs. This revealed that a small interconnected group of mainly American and European (mostly British) TNCs owns a disproportionate share of TNCs in general: the ownership network of TNCs worldwide consist of a core and periphery. Broad Patterns in the TNC bow tie structure:

The knot of the bow tie consists of 295 TNCs connected by a network of cross shareholdings so dense that three quarters of the shares of these CORE firms are owned by other CORE firms. Together the operating revenue of this group of firms constitutes 19% of the total operating revenue of all TNCs put together. The 6,488 TNCs here account for just under 60% of total global TNC operating revenue. The left hand IN section consists of 282 TNCs that own shares in CORE firms but in which CORE firms themselves do not own shares. These account for just 2% of total global TNC operating revenue. The semi detached tube and tendril (T&T) extensions to the bow tie ( the bits that go around your neck) consist of 8,246 TNCs that can be said to be connected to the core by ownership pathways only if you ignore the direction of ownership: if you follow an ownership pathway between the core and these TNCs you find a point at which the firm indirectly owned by one or more CORE firms does not own shares in the next firm but instead is part owned by this firm. For this reason the ownership pathways do not result in CORe firms owning any shares in T&T firms, or vice versa. T&T firms account for 14% of global TNC operating revenue. The 27,569 TNCs that not connected to the core at all account for just 6% of total global TNC operating revenue. Their preferred threshold model makes the reasonable assumption that ownership of over 50% of a TNC shares generally brings 100% control. In such cases other shareholders are deemed to have zero control.

Interestingly, operating revenue controlled by CORE firms through their shareholdings is much greater than what they generate through their own activities, therefore evaluating and estimating the value of a CORE firm would incorporate its holding company’s value as well. Further expanding the notion of concentrated and centralized control, power, wealth, and characteristics similar to monopolization; a new form of modern day monopolization through a global economic structural and systemic homogeneity facilitating holding companies with CORE company ownership. Through deregulation during the 1980s and 1990s of anti trust laws, large banks are now allowed to own holding companies such as investment banks which were once banned practices and deemed monopolistic.

Although they account for just 19% of the value of global TNC revenue, the 295 CORE TNCs control 38%. the 6,500 OUT TNCs, which generate 60% of global TNC operating revenue, control just 1% that is, the shares they own in other TNCs are not sufficient to enable them to control much at all. The 282 IN TNCs, which generate only 2% of global TNC operating revenue, control 38%. 4) The 8,000 semi-detached T&T firms control just 10%. 5) The 28,000 TNCs that are not connected to the core at all control just 0.2%.

��It’s a Small World, a Really Small World”:

The picture which emerges is a very clear one: the world of TNCs is dominated, via ownership relations, by a very small core of just under 300 firms. This corporate elite constitutes just 0.7% of the TNCS in the study. As well as being powerful collectively, CORE firms are often powerful individually. Seven of the top ten TNCs, which jointly control nearly 20% of total global TNC operating revenue, are CORE firms, and 23 of the top 30. The biggest, Barclays, controls 4% of total global TNC operating revenue all by itself:

Barclays (CORE, UK) The Capital Group Companies (IN, US) Fidelity Investments (IN, US) AXA (CORE, France) State Street Corporation (CORE, US) JP Morgan Chase (CORE, US) Legal and General Group (CORE, UK) Vanguard Group (IN, US) UBS (CORE, Switzerland) Merrill Lynch (CORE, US)

IN firms can also be big: it is they which take the three non-CORE places in the top ten. These are firms which are independent of the core in the sense that none of their shares are owned by CORE firms. In some cases this is because they are not the sorts of entities that issue shares at all. Some, for example, are state authorities. Others are individuals or families. So to some extent the revealed pattern of ownership and control is a consequence of the nature of the types of economic entities active today.

We also see that 80% of the operating revenue of TNCs worldwide is controlled by just 737 of the 43,060 TNCs covered by the study. These top holders are mostly but no exclusively CORE and IN firms. Most of the biggest top holders are either American or British, and most of the rest are European. The top non-Western (Japanese) firm only gets in at 23.

It is noticeable that financial firms dominate. All of the top ten TNCs are banks or financial firms of some sort. This is hardly surprising, as financial firms are the ones with money to invest both on their own account and on behalf of others. TNCs that actually produce things have their money tied up in production facilities. So once again we can see that there is a certain inevitability about the pattern we see due to the nature of the participants: financial TNCs were always likely to form the basis of one or more cores, being likely to take shareholdings in each other as well as in other types of firms, while industrial TNCs were always likely to end up as OUT firms. Of the 78 banks among the topholders, for instance, 77 are CORE or IN firms, compared to just 10 of the 31 manufacturing firms listed.

So the significance of the study is not so much that there is a core periphery structure as that there is just once core and that this core is so small and controls so much.

How reliable are these findings?

The Orbis database is the best source of information we have for this sort of analysis. It includes more TNCs than any other database and its ownership figures are verified by checking them across different sources. Although the administrative information on which it is based can be incomplete, or poor quality, or internally inconsistent, shares are legally defined entities that shareholders want accurately recorded, so there are major actors with a strong incentive to ensure that the information is in face accurately recorded. It is difficult to think of any sources of information that might provide a more accurate picture of shareholdings.

The main problem is missing cases: the number of companies which Bureau can Dijk has ownership data si much smaller than the total number of firms in the ORBIS database, and ORBIS itself is not universal in its coverage. In 2011 there were 20 million companies in the ownership database compared with 75 million in ORBIS. Although most if not all of the bigger TNCs may well be included in the ownership database, their size making them difficult to miss, it seems unlikely that the analysis includes all TNCs worldwide.

There is also an issue of missing values, as Bureau can Dijk does not claim to have collected all the ownership links of all firms in the ownership database. The study therefore under-estimates the density of links in the ownership network. For this reason it may well under-estimate the number of TNCs that qualify as CORE on account of the density of their ownership links with CORE firms.

To sum up, the data is fairly solid but there isn’t enough of it. But it is the best data we have. Previous studies of firm ownership and control have analyzed much smaller sets of companies. The seminal study of Berle and Means, for example, analyzed 200 American companies. La Porta’s study of the 27 richest economies examined 691 firms. Faccio and Lang analyzed 5,232 corporations in West European countries. Gadhoum, Lang, and Young looked at 3,607 American corporations. An the missing cases/values problems cannot be circumvented by analyzing a random sample of TNCs instead because any such sample would need to be drawn from the underlying population of TNCs, for which the best approximation is the set of TNCs included in ORBIS.

The main problem with the methodology is the models for inferring control from ownership all lead the authors to over-estimate the density of the network of control. This is because all three ascribe some measure of control shareholdings that are so small that there is no way they can enable their owners to exert any control in practice. Can ownership of, say, 0.2% of a company’s shares enable one to exert control over that company? Obviously not. The study therefore estimates the extent to which CORE firms control other firms, including each other. For this reason a more realistic picture may well reveal that the core is smaller and weaker than depicted in the study. It might even reveal that there is not single central core at all, or the central core is for a specific pool of companies.

One obvious remedy for this bias would be to amend the authors’ threshold models to ascribe zero control to all shareholdings below a certain level. This need not be 50% because a stake as low as 20%, or even 10%, can be enough to bring effective control of a company when no other shareholders have significant holdings. The other problems are technical and affect the figures for percentage control rather than the pattern of the control network. First, the authors point out that their method overestimates the operating revenue controlled by firms that are either part of cycles (including cross-shareholding structures) or upstream of cycles.

Cross-shareholdings exist when two companies have shares in each other. The problem is best illustrated by an example. Is A owns 50% of the shares in B, and B and C own majority shareholdings in each other, the algorithm that traces control links will go from A to B to C to B to C to B to C and so on, thus over-estimating the operating revenue controlled directly by B and indirectly by A.

In such cases the algorithm that calculates how much operating revenue a TNC controls will proceed around the circuits indefinitely and thereby inflate the figures for the revenue controlled by these firms and thus by firms upstream of them. The author’s solution is to remove all the ownership links that point back towards the shareholding TNC before performing the calculation. In the cross-shareholding example this means removing the link from C to B, so that the calculation amounts A->B and B->C but not C->B. In the cycling examples it means removing all backward facing links as well as the forward facing link from C to A. It seems clear that this does eliminate the problem.

The second problem is that the method of calculation results in TNCs that owns shares in core firms but in which core firms do not have shares-IN firms-being credited with controlling all the operating revenue of all the firms in which, directly and indirectly, they have shares regardless of the percentages of voting shares involved. However, it is unclear why this should happen. It is also unclear how the authors deal with this problem.

Enterprises of this nature are seldom perfect. Data is rarely complete and methodological problems often require workarounds and compromises. This study is no exception. Yet that data is generally solid and the methodology mainly sound. The only significant problem is the overestimation of the number of control links among TNCs, as this may have led to the identification of a pattern of control that is different from what would have been generated by a more realistic methodology.

Having said this, the core periphery pattern that emerges from the analysis is so clearcuts that it seems unlikely that reality is much different: the core may be bigger or smaller, and control more or less operating revenue, but it seems unlikely that the basic core-periphery structure that we see is merely and artefact of imperfect data or research methods. Pending replication of the study using a better methodology, and in the absence of any competing findings, it is therefore reasonable to accept these results as the most accurate picture that we have to date of the structure of ownership and control among TNCs.

Political and Economic Implications: The findings that such a large proportion of TNCs is controlled by such a small and cohesive group of firms is completely new. Some may have suspected it but until now there has been little evidence. Previous studies have focused on the national level, and have often specifically excluded TNCs. What does it mean? Does it indicate there is a united cabal of CORE TNCs that deliberately coordinate their actions with those of the TNCs they control? This seems unlikely. The authors have established that CORE TNCs have the power to influence many other TNCs but they have not shown-and do not claim- that they actually exercise power. On the other hand, the idea that CORE TNCs have control of other TNCs but never us it is also absurd. So we must expect that CORE TNCs does have some degree of influence on the TNCs they control, and possibly on each other as well. In terms of behavior al economics, herding behavior discussed by Alan Greenspan has been exhibited, this phenomena of influence and behavioral economics will be further discussed in another article.

On the other hand, the idea that CORE TNCs have control of other TNCs but never use it is also absurd. So we must expect that CORE TNCs do have some degree of influence on the TNCs they control, and possibly on each other as well.

If so, how would this work?

One way would be by causing homogenization of views and actions among CORE and OUT TNCs. If a CORE firm control an OUT firm or another CORE firm, it can oust the management of these firms if they step too far out of line. They may also be able to intervene directly in management decisions. This means that over time the view and actions of controlled firms will tend to become more similar to those of the firms that control them.

It follows that we should expect the policy preferences of CORE and OUT firms to become more similar over time. Government policies relating to business are a constant focus of attention for TNCs as they try to get the best deal they can from governments. It would be surprising if any homogenizing effect left attitudes to government policies untouched. We should therefore expect the policy preferences of OUT firms to become more CORE-like, and the preferences of CORE firms to converge.

The longer the core has been in existence, the more pronounced one would expect this effect to be. And it is possible that the core has existed for a long time. Although we have no evidence on this, and no doubt firms enter and leave the core on a regular basis, it is noticeable that the core is dominated by firms based in the current and former centers of world power: the US and Europe. This association with political power may be no accident, in which case a TNC core associated with Europe and the US may have existed for decades if not longer.

To the extent that the policy preferences of CORE TNCs and their controlled TNCs converge, we would expect them to become more likely to react similarly to what national governments do. One consequence of this could be a tendency to shift investment in the same direction at the same time in response to policy developments. This would mean bigger investment flows in response to the actions of governments and therefore bigger rewards for governments that do what TNCs want and more severe sanctions for those that don’t. Discussion: The fact that control is highly concentrated in the hands of a few top holders does not fully determine is and how they are interconnected. It is only by combining topology with control ranking that we obtain a full characterization of the structure of control. A first question we are now able to answer is where the top actors are located in the bow tie. As the reader may now suspect, powerful actors tend to belong to the core. In fact, the location of a TNCS in the network does matter. For instance, a randomly chosen TNC in the core has about 50% chance of also being among the top holders, compared to e.g. 6% for the in-section. A second question concerns what share of total control each component of the bow-tie holds. We find that, despite its small size, the core holds collectively a large fraction of the total network control. In detail, nearly 4/10 of the control over the economic value of TNCs in the world is held, via a complicated web of ownership relations by a group of 147 TNCs in the core, which has almost full control over itself. The top shareholders within the core can thus be thought of as an economic “super entity” in the global network of corporations. A relevant additional fact at this point is that 3/4 of the core are financial intermediaries. Revealing a small subset of well-known financial players and their links, providing an idea of the level of entanglement of the entire core.

Concentration of network control and operating revenue: Economic actors (TNCs and shareholders) are sorted by descending importance, as given by cnet. A data point located at (n,theta) corresponds to a fraction n of top economic actors cumulatively holding the fraction theta of network control, value or operating revenue. The different curves refer to network control computed with the models (LM, TM, RM), and operating revenue. The horizontal line denotes a value of theta equal to 80%. The level of concentration is determined by the n value of the intersection between each curve and the horizontal line.

This remarkable finding raises at least two questions that are fundamental to the understanding of the functioning of the global economy. Firstly, what are the implications for global financial stability? It is known that financial institutions establish financial contracts, such as lending or credit derivatives, with several other institutions. This allows them to diversify risk, but, at the same time, it also exposes them to contagion. This phenomena is further discussed in another article provided to you, which we will go over. Unfortunately, information on these contracts is usually not disclosed due to strategic reasons, but new disclosed information was discussed in the article I’ve mentioned. However, in various countries, the existence of such financial ties is correlated with the existence of ownership relations. Thus in the hypothesis that the structure of the ownership network is a good proxy for that of the financial network, this implies that the global financial network is also very intricate. Recent works have shown that when a financial network is very densely connected it is prone to systemic risk. Indeed, while in good time the network is seemingly robust, in bad times firms go into distress simultaneously.

Secondly, what are the implications for market competition? Since many TNCs in the core have overlapping domains of activity, the fact that they are connected by ownership relations could facilitate the formation of blocs, which would hamper market competition. Remarkably, the existence of such a core in the global market was never documented before and thus, so far, no scientific study demonstrates or excludes that this international “super-entity” has ever acted as a bloc. Previous studies have shown how even small cross-shareholding structures, at a national level, can affect market competition in sectors such as airline, automobile and steel, as well as the financial one. At the same time, antitrust institutions around the world (e.g. the UK Office of Fair Trade) closely monitor complex ownership structures within their national borders. The fact that international data sets as well as methods to handle large network became available only very recently, may explain how this finding could go unnoticed for so long.

Two issues are worth being addressed here. Once may question the idea of putting together data of ownership across countries with diverse legal settings. However, previous empirical work shows that of all possible  determinants affecting ownership relations in different countries (e.g. tax rules, level of corruption, institutional settings, etc.), only the level of investor protection is statistically relevant. In any case it is remarkable that our results on concentration are robust with respect to three very different models used to infer control from ownership. The second issue concerns the control that financial institutions effectively exert. According to some theoretical arguments, in general, financial institutions do not invest in equity shares in order to exert control. However, there is also empirical evidence of the opposite. Our results show that, globally, top holders are at least in the position to exert considerable control, either formally (e.g. voting in shareholder and board meetings) or via informal negotiations.

Beyond the relevance of these results for economies and policy making, our methodology can be applied to identify key nodes in any real world network in which a scalar quantity (e.g. resources or energy) flows along directed weighted links. From an empirical point of view, a bow tie structure with a very small and influential core is a new observation in the study of complex networks. We conjecture that it may be present in other types of network where “rich get richer” mechanisms are at work (although a degree preferential attachment alone does not produce a bow tie).

Data and TNC Network Detection: The Orbis 2007 marketing database comprises about 37 million economic actors, both physical persons and firms located in 194 countries, and roughly 13 million directed and weighted ownership links (equity relations). Among many others, information on the industrial classification, geographical position and operating revenue of the actors are provided. This data set is intended to track control relationships rather than patrimonial relationships.

The definition of TNCs given by the OECD states that they…comprise companies and other entities established in more than one country and so linked that they may coordinate their operations in various ways, while one or more of these entities may be able to exercise a significant influence over the activities of others, their degree of autonomy within the enterprise may vary widely from one multinational enterprise to another. Ownership may be private, state or mixed.

According, we select those companies which hold at least 10% of shares in companies located in more than one country. However, many subsidiaries of large TNCs fulfill themselves this definition of TNCs (e.g. The Coca Cola Company owns Coca Cola Hellenic Bottling Company which in turn owns Coca Cola Beverages Austria). Since for each multinational group we are interested in retaining only one representative. Overall we obtain a list of 43,060 TNCs located in 116 different countries, with 5675 TNCs quoted in stock markets. after exploring recursively the neighborhood of companies in the whole database, we identify all companies participated directly and indirectly by the TNCs and three classes of nodes: Transnational companies, shareholders, and participating companies. Three types of economic actors appear: 77,456, shareholders: 43,060, and Participating Companies: 479,992.

Network Control: In this section we first recapitulate the existing method for computing the value or control in a network. In a second step, we highlight two problems that plague this approach, especially in network with bow-tie topology. The first is that the control assigned to firms that part of cross-shareholding structures is overestimated. The second is a similar overestimation of the control of the shareholders who are themselves not owned by others. These two problems require independent solutions. Finally we illustrate the problem and the corrections introduced by the algorithm using a representative example of a small bow-tie network.

The Existing Methodology: Firstly, direct control is estimated from the direct ownership relations. Network control is then computed on the basis of direct control considering all paths in the network. For the computation of the direct control, we use three models: the linear model, applying the one share one vote rule, the threshold model, and the relative control model. We denote three models respectively: Linear model, threshold model (for estimating control from ownership), and relative model (for estimating control from ownership). According to the linear model, there is no deviation between ownership and control, thus the direct control matrix coincides with the ownership matrix, Lij=Wij. In the TM, full control over a company is assigned to the actor holding a number of shares higher than a predefined threshold (50% in our case), while the other holders are assigned zero control. The control matrix for the threshold is denoted as Tij. Finally the RM assigns control based on the relative fraction of ownership shares that each shareholder has (using a Herfindhal-like concentration index). The control matrix is defined. In particular, the RM assigns high control to a shareholder with a small share in absolute terms, if this share is significantly bigger than the share of all the other shareholders. The value of the portfolio of firms owned directly by i should be computed taking into account the value of the firms owned by the firms in the portfolio and so on. Thus, the network portfolio value pinet consists of the value gained indirectly plus the value of the direct portfolio: pinet=SigmajWijvj + SigmajWijpjnet. Pnet=portfolio value (value gained by direct and indirect ownership). The vector v represents the intrinsic value of the firms (e.g. operating revenue, total assets or market capitalization). Here we use operating revenue, because it is readily available for the economic actors under investigation and it is comparable across sectors (this is not true for total assets). We introduce the network control (value), this quantity measures the value controlled by a shareholder taking into account the network of firms in which it has direct or indirect shares. Cnet=Ccnet + Cv

Cij=Cij + sigmakCikCkj This corresponds to the definition of integrated ownership given in 6. We can interpret cnet as the value of control an economic actor gains from all its direct and indirect paths in the network. Notice that equation 1 is related to the notion of eigenvector centrality used to investigate power and influence both in social and economic networks. There is also an additional interpretation of network control in terms a physical system in which a quantity is flowing along the links of the network. A value vj produces vj units of the quantity at time t=1. Aij determines the fraction of vj that flows through it. Then the inflow, I.e. the flow phi(i) entering the node i from each node j at time t is the fraction Aij of the quantity by j plus the same fraction of the inflow of j. Thus if v corresponds to an intrinsic economic value of the nodes, then the network control corresponds to the inflow of control over this value. The network portfolio value of a node is determined by the total inflow of value entering the node.

Network value: vnet=Cvnet + v vnet= Cv + v = cnet + v In other words, the network value of an economic actor is given by its intrinsic value plus the value gained from network control. It is an estimate of the overall value a corporation has in an ownership network. Notice that network value and network control of a company can differ considerably. Wall Mart is in top rank by operating revenue but it has no equity shares in other TNCs and thus its network control is zero. cnet=Cv=Cvnet, network control can either be understood as the value of control gained from the intrinsic value reachable by all direct and indirect paths or the value of control given by the network value of directly controlled firms.

The Algorithm: Computing Control While Remedying the Problems

The equations defining network control and network value suffer from three drawbacks. Firstly, the computation overestimates control when there are cycles in the network (for example in an SCC), i.e., when the number of inter-firm cross-shareholdings grows. Indeed in a dense SCC control flows through the nodes many times. The smaller the incoming links from the IN are the longer it takes until the flow stops, as, in the steady state, everything ultimately flows to and accumulates in the root-nodes. However, since control corresponds to the total inflow over an infinite time this exaggerates the control of the nodes in the SCC and all the control ultimately flows to the root-nodes.

We first illustrate the algorithm for the computation of vnet. Then cnet=vnet-v. In order to calculate the network value for any specific node i, we extract the whole subnetwork that is downstream of a node i, including i. Let B denote the adjacency matrix of such a subnetwork, including I, extracted from the control matrix C= (L,T,R). both methods still suffer from the problem of root nodes accumulating all the control. To solve this, we adjust our algorithm to pay special attention to the IN-nodes of an SCC. We partition the bow tie associated with this SCC into its components: the IN (to which we also add the T&T), the SCC itself, and the OUT.  

SCC: Note that for those SCC nodes that were already considered in step 2, their network value is not taken as the intrinsic value in the computation. vi->vnet (i) +vi

Notice that if any part of the bow tie structure contains additional smaller SCCs, these should be treated first, by applying steps two to four. This dissection of the network into its bow tie components also reduced the computational problems. The smaller sizes of the subnetworks allow faster computations. To summarize, using one of the three adjacency matrices estimating direct control, CE(L,T,R,) we can compute the corresponding network value for a corporation: vi(net). By deducting the operating revenue, we retrieve the network control: cnet. Operating revenue is taken for the value of the TNCs. Figure 3 shows the distribution of the operating revenue of the TNCs and the resulting network value.

Proving the BFS Methodology Corrects for Cycles:

the BFS algorithm yields an equivalent computation proposed in the literature to address the problems of the presence cycles leading to exaggerated network value.

Degree and Strength Distribution Analysis: The in-degree corresponds to the number of shareholders owning shares in a given firm. It can be thought of as a proxy for control fragmentation. The maximum number of companies owned by a single economic actor exceeds 5000 for some financial companies.

Connected Component Analysis: In a strongly connected component (SCC) all firms reach via an ownership pathway all other firms, thus owning each other indirectly to some extent. In contrast, in a weakly CC firms can reach each other only if one ignores the direction of the ownership links. This is still a situation of interest from an economic point of view because the flow of knowledge and information is not restricted by the direction of the link. The number and the size distribution of the CC provide a measure of the fragmentation of the market. We find that the TNC network consists of 23825 CC. A majority of the nodes (77%) belong to the LCC (largest connected component) with 463006 economic actors and 889601 relations. The remaining nodes belong to CCs with sizes at least 2000 times smaller. The second largest CC contains 230 nodes and 90% of the CC have less than 10 nodes.

From a geographical point of view, the LCC includes companies from 191 countries. Of these, 15491 are TNCs (about 36% of all TNCs but accounting for 94.2% of the total operating revenue) from 83 different countries. The firms that are PCs are much more numerous (399696) and are located in only 38 countries. In addition, a sector analysis of the LCC shows that the most represented industries are the business activities sector, with 130587 companies, followed by the services sector with 99839 companies and the manufacturing sector with 66212 companies. On the other hand, surprisingly, the financial intermediaries sector counts only 46632 companies. However, if we distinguish between ingoing and outgoing relations, the financial intermediaries hold the largest number of shares (341363). Instead, the manufacturing and services sectors, with respectively 182699 and 170397 companies, have the companies with the most shareholders.

Bow Tie Component Sizes: For instance, exchanging a 10% ownership share in a small company with 10% in a big one requires the modification of the budget of the owner. In addition, the procedure is computationally cumbersome for large data sets.

Strongly Connected Component Analysis: Cross-shareholdings, or strongly connected component (SCCs) in graph theory, are sub network structures where companies own each other directly or indirectly through a chain of links. Graphically speaking, this means that they form cycles and are all reachable by every other firm in the SCC. In economics, this kinds of ownership relation has raised the attention of different economic institutions, such as the antitrust regulators, as well as that of the companies themselves. They can set up cross-shareholdings for coping with possible takeovers, directly sharing information, monitoring and strategies reducing market competition.

Network Control Concentration: Control of Financial Institutions

One meaning of control in the corporate finance literature is the frequency by which a shareholder is able to influence the firm’s strategic decision during the official voting. Differently, in this work, by control we mean how much economic value of companies a shareholder is able to influence. We look at the control each shareholder has over its whole portfolio of directly and indirectly owned firms. Our notion of control can be related to Weber’s definition of power, I.e. the probability of an individual to be able to impose their will despite the opposition of the others.

On the contrary, and find that mutual funds, which typically hold large blocks of shares, vote against the management (i.e. in favor of corporate governance proposals) only 33% of the times (in the case of Fidelity Fund). However, they do so in more than 60%, on average, in other 11 cases analyzed. These results are suggested to originate mainly from a conflict of interest, where the benefits of providing pension plan management to client corporations outweighs the possible benefits gained from increased shareholder value. However, while some mutual funds are reticent to exercise their power during voting mainly in the US, an activist stance is observed for some smaller funds and when operating outside the US. In any case, in our study US mutual funds represent only a small fraction of all global financial institutions. In general, 49 mutual funds, identifies by the NACE code 6714, are among the 727 top power holders.

Top Control-Holders Ranking: Instead, it shows that many of the top actors belong to the core. This means that they do not carry out their business in isolation but, on the contrary, they are tied together in an extremely entangled web of control.

Threshold Model:

in the TM, full control over a company is assigned to the actors holding a number of shares higher than a predefined threshold (50% in our case), while other holders are assigned 0% control. In this case we use TM as our main measure.

The value of the portfolio of firms owned directly by (i) should be computed taking into account the value of the firms in the portfolio and so on.

Value= (operating revenue, total assets, market capitalization)

Pnet= value gained by indirectly plus the value of the direct portfolio

Network Control Value= this quantity measures the value controlled by a shareholder taking into account the network of firms in which it has direct or indirect shares.

THE COMMUNITY STRUCTURE OF THE GLOBAL CORPORATE NETWORK

I was quite surprised by this: Respectively, to the services, manufacturing and real estates, renting and business activities sectors. Even in this community includes only 2283 TNCs (5% of the total), in terms of operating revenue, it represents roughly 34%of the total TNC values.

The second largest community has 49475 members, of which 2004 TNCs accounting for the 17% of the total operating revenue. Geographically speaking, the nodes belong, almost completely, to European countries (89%), with Great Britain (42%) leading the other countries (Germany is represented by 9.6% of nodes, France by 6%, Sweden by 5% and Italy by 4%). The largest part of the companies are in the business activity industry (39%), while the services and manufacturing sectors account for 20% and 18% respectively. Overall, the results of these analysis show that the community structure reflects the location of firms in the geographical space, while the gold of the sector is much less important.

Sub-communities: the inner structure of communities

For instance, we find that the firms in the top largest sub-community belong also to the top first top community and represent a major part of that community (i.e. 42121 firms out of 54065). Similarly the firms in the second largest sub-community belong also to the second top community (with 19247 firms out of 49475). Conversely, all the other sub-communities comprise less than 600 nodes. In contrast, from the third community onward, the Herfindhal index is at least 10 times smaller. This suggests that the inner structure of the two top largest communities differs from the one of all the other communities. Whiles the two largest communities have a star-like structure with one large sub-community acting as a hub, the other communities have a much less hierarchical structure. All sub-communities display a geographical characterization. For instance, 70% of the sub-communities of the largest community consists of firms located in only one country.

The Community network and the role of the financial sector:

Notice that in the community network the LSCC relative size (7.74%) is much larger than in the firm-shareholder network (1347). This has a simple explanation. Consider a community in the OUT. Since links among communities are obtained aggregating links between shareholders and firms, it is enough for that community to have one if its firms investing in a firm belonging to one of the communities in the LSCC to make the community enter the LSCC. The LSCC is still much smaller in relative terms than in other paradigmatic real world networks such as wikipedia or the web.

I love a great conspiracy theory…

Financial intermediaries are well integrated in the network and hold many ownership shares in companies belonging to both the non-financial and the financial sector. In fact, in our sample of all the ownership relations in the network. Many of these relations appear to have a strategic nature. Indeed, the financial intermediaries hold shares larger than 5% in 13% of non-financial companies and in 60% of other financial companies. In order to assess the role of the financial sector as a source of the connections among communities, we repeat the above statistics for the network of communities obtained by removing from each community the firms (46632 in total) that belong to the financial sector (i.e. companies having NACE codes in the classes 6500-7000 and named “financial intermediation, except insurance and pension funding”), and all their links 351587 in total).

As we notice, overall the topology remains close to the case with the financial sector. In contrast, the removal of the financial sector has a strong impact at the level of the weight of the links among communities. Indeed, after removing the firms in financial sector, the number of ownership relations among firms decreases sharply. On the other hand, the community less affected by the financial sector is the 7th, with 3% of removed companies and a reduction of only 340 links.

Finally, in order to assess the relative importance of each community we use DebtRank, a centrality measure recently introduced in complex networks literature in the context of economic networks. Beyond the interpretation in terms of economic loss due to the distress of one more nodes in the network, DebtRank can be used as a measure of importance, once a network of impact is defined. Here we define the impact of community i over j as the ratio between the number of investments of community j into i over the number of investments within community j=Wij=BAji/Ajj, where B is a rescaling factor that for visualization purposes we set equal to the number of nodes in the network under observation, B=50. Notice that we are not interested in carrying out a stress test. We only aim to compare the importance of the communities in the case with and without the financial sector. Traditional measures of centrality are not well suited for this purpose. For instance, Eigenvector Centrality is defined only on strongly connected graphs, or equivalently on undirected graphs. Other measures of impact, e.g. require a normalization of the impact matrix which then prevents from making an absolute comparison of the importance of a given node across different networks.

this illustrates the network of the top 50 communities in a diagram where the position of each community reflects its centrality, as measured by DebtRank. As we can expect, the top communities by size are also more central. the network of the top 50 communities after removing the firms in the financial sector reveals in this case, the top communities lose much of their centrality. As we can see, while the topological properties that do not account for the weight of the links are only moderately affected by the removal of the financial sector, the centrality computed with DebtRank, which do take weights into account, changes drastically. The difference in centrality quantifies the role played by the financial sector in the strength of the links among communities and, thus, in determining the potential impact that each community has on the others.

In conclusion we have investigated the community structure of the global corporate network, I.e. the network of ownership among transnational corporations. This network is obtained from a large database of corporate information with a snowball procedure that starts from a list of about 43 thousand transnational corporations and recursively explores all the incoming and outgoing ownership relations. We have found that the organization in communities is pronounced and cannot be explained by randomness. Moreover, most communities are characterized by a dominant country, in the sense that the fraction of firms belonging to that country are not only the (relative) majority, but are over-expressed with respect to what would happen if the nationality is distributed at random among the firms. The characterization in terms of sectors is significant, but less pronounced than the one for countries. Thus, we conclude that the global corporate network is strongly clustered in communities, where geography is the major driver while sector is not so important. We have also analyzed the network in which nodes are the communities and links are obtained aggregating the links among the firms belonging to pairs of communities. In order to assess the role of the financial sector in the architecture of the global corporate network, we have analyzed the centrality of the top 50 communities by means of the DebtRank algorithm. This has allowed us to obtain an absolute (as opposed to relative) measure of the importance of each community, which we have then used to compare the case with and without the firms in the financial sector. The difference between these two cases has provided a first quantitative assessment of the role of the financial sector in connecting the global economy.

Furthermore, a subsequent global empirical study, decades later, uncovered a more diverse picture: globally, dispersed ownership is actually quite rare and indeed usually only observed for Anglo-Saxon countries. Concentrated ownership (e.g. family control) is much more prevalent in most of the 27 countries analyzes. Of all the conceivable national determinants (legal settings, law enforcement, corruption, tax rules, institutional settings, market size, maturity of the banking sectors, etc.) the distinguishing feature is reported to be mainly the consequence of legal protection: ownership concentration is a result of poor legal protection of minority shareholders. For European countries, an older study also uncovered concentrated control structures. Also present an analysis of control in European countries in a more recent book. Finally, Windolf analyzes corporate networks of firms connected by managers (so-called interlocking directorates) in Europe and the United States. The author also investigates ownership relations and analyzes the structural similarities between the interlock networks and the capital networks.

Cross-Shareholdings: Complex structures of ownership can themselves be used as vehicles to separate ownership from control. A simple shareholding structure used to separate ownership from control is a so-called pyramid. It is comprised of an ultimate owner sitting on top of the ownership structure exerting control on firms located at lower levels down the chain. More complex ownership patterns are cross-shareholdings. These are said to occur when corporations own shares in each other. Generally, cross-shareholdings are sub-networks where companies own each other directly or indirectly through chains of ownership relations. In other words, they are loose coalitions of firms. Note that cross-shareholdings correspond to SCCs in graph theory, recalling the core of the bow-tie topology. Cross-shareholdings are common in European, Asian and South American countries. They are sometimes referred to as conglomerates or business groups. Prominent examples are the keiretsuu in Japan, the chaebol in Korea and groups economics in South America. As an example, the keiretsu Is a network of companies, usually organized around a major bank, reflecting long-term business relationships. It is a system of corporate governance, where the power is split between the main bank, the largest companies and the group as a whole. There are many proposed theories explaining their existence. Among the most important are: the anti-takeover theory (preventing hostile takeovers), the externality theory (positive spillover of information), and the successive monopoly theory (stipulating informal agreements on prices). There is vast literature focussed on cross-ownership relations. Note also, that to what extent the economic activities of a country are in the control of one or more groups of few actors, is also a recurrent question in history. The answer has important implications in terms of market competition, systemic risk power, and for political power. It is an interesting observationn, that all Anglo-Saxon countries share a unique “type” of capitalism, the so-called Atlantic, stock market or arm’s length capitalism. Furthermore it is striking that business groups are assumed to be absent in these countries. The reasons for this can seen in various historical developments, as explained in the following for the US.

The Special Case of Ownership and Control in the United States: In the last 19th Century, a populist view in the US saw the so-called Money Trust, and alliance of a few New York banks, as the center of corporate power. This bank centered system was perceived as unhealthy competition and lead to the adoption of a series of antitrust regulations by the mid 1930s. Still today, in many developed countries, the financial sector is often described by the popular press as a kind of puppet master behind the scenes.

In parallel, American households greatly expanded their equity ownership. In other words, the public was participating in the stock market. This widespread dispersion of stock was then documented by Berle and Means at the beginning of the 1930s, who, as a consequence, saw the management being in control. This was understood as a lamentable situation because of the perceived unaccountability of managers (agency problem). This rise of so-called was unchallenged until the 1960s. Then, slowly the paradigm changed. The idea that dispersed ownership, embodied in the notion of shareholder value, was seen as favorable and efficient setup. In contrast, concentrated ownership was perceived as a threat, indicating that minority shareholders were not well protected. This led to a change in thinking about corporate governance in the US, motivated by the idea that a democratic corporate governance, together with diluted shareholding, can prevent excessive concentration of control. As a result, there has been a recent wave of liberalization of the financial markets. 
 The 1960s and 1970s saw a wave of conglomerate mergers. This reflected the strategy of growth through acquiring firms in unrelated lines of business and structuring them as a collection of separate business units. However, in the 1980s and 1990s there was a period of “deconglomeration” dismantling the business groups. The reason for this was seen as the inherent instability of American-style conglomerates. But during the 1980s, this was also a period of major “mergers and acquisitions” which investment banks helped facilitate companies in terms of merging and acquiring other companies.

Ownership Network Revisited: The large body of corporate governance can be grouped into three main categories: identifying the seat of power (who is really in control of a corporation and how is control dispersed or concentrated, empirical investigations of how the patterns of control vary across countries and what determines them, analyzing the frequency observed complex ownership patterns (e.g. business groups and pyramids) and how they act as vehicles to separate ownership from control. It should be noted that these previous studies did not build on the idea that ownership and control define a vast network of dependencies. Instead, they selected sample of selected important companies (for instance in terms of market capitalization) and looked only at their local web of interconnections. The aim was usually to identify the ultimate owner of these small networks of firms. As an example, studies the ten largest corporations in 49 countries, looks at the 20 largest public companies in 27 countries, analyzes 2980 companies in nine East Asian countries, traces the ultimate ownership and control of 5232 European corporations, and utilizes a set of 800 Belgian firms.

It is a remarkable fact that the investigation of the financial architecture of corporations in a national or global economies taken as a network is just at the beginning. The pioneering work in Kogut and Walker looks at the German ownership networks in 1933 and analyzes the merger and acquisitions events from 1994 to 1997. The dataset is comprised of 550 firms and 685 shareholders. The authors investigation the topological feautres, namely the small world property of the network and identify communities. They find that the core structure of important economic actors is extremely robust and resilient, defying the powerful force of globalization. The study conclude that “power is self-preserving” and “embedded in small worlds.”

Another prominent empirical analysis of ownership networks is this work, which studies the impact of institutional interventions on the Italian ownership, network. Two snapshots of the network are compared: 1990 (454 shareholders, 212 firms, and 817 ownership relations) and 2000 (553 owners, 207 companies, and 751 links). Although the effect of the interventions is witnessed by the increased fragmentation of the network at the macro level, again, there is a high stability in the structure of the backbone of the network comprised of the most important economic actors. The authors conclude:

“The network of cross-ownerships might generalizable features of a small world, and these features might be sufficiently resilient to institutional change. If this is the case, then the small world of business ownership networks might need to be accepted as a ‘natural’ element of the industrial texture in a given country. There is no point in trying to fight gravity.”

Homogenous patterns of systemic risk across financial institutions are evident that transcend influences of similar shareholders and policies amongst financial institutions through derivatives contracts and sales of mortgage backed securities. As discussed and evident in the article: TITLE: Debt Rank: Too Central to Fail? Financial Networks Framework, the Fed, Global Bailouts, US Emergency Lending, and Systemic Risk (further discussed in a later chapter)

Systemic risk, here meant as the risk of default of a large portion of the financial system, depends on the network of financial exposures among institutions. to fill this gap, we introduce DebtRank, a novel measure of systematic impact inspired by feedback-centrality. We analyze a new and unique dataset on the USD 1.2 Trillion GED emergency loan program to global financial institutions during 2008-2010. we find that a group of 22 institutions, which received most of the funds, form a strongly connected graph where each of the nodes become systematically important at the peak of the crisis. the results suggest that the debate on too big to fail institutions should include the even more serious issue of too central to fail. Indeed, the recent economic turmoil has raised a broad awareness that the financial system should be regarded as a complex network whose nodes are financial institutions and links are financial dependencies. in this perspective systematic risk is meant here as the risk of a systemic default, i.e. the default of a large portion of the financial system. It can be quantified and measured from the analysis of the dynamical evolution of the nodes and from the structure of the network. The main open question regarding financial networks concerns the determination of the so called "systemically important" financial institutions, namely the ones that, if defaulting can trigger a systemic default are thus to be considered "too big to fail."

In the US, the financial crisis reached a peak in the period March 2008-March 2010. During this time, many US and international financial institutions received aid from the US Federal Reserve Bank (FED) through emergency loans programs, including the so called "Fed Discount Window." The amount and the recipients of these loans were not disclosed until very recently. This data represents, to our knowledge, the first data set, publicly available, on the daily financial exposures between a central bank and a large set of institutions over several months. Here, we instead present an analysis from the perspective of complex financial networks and systemic risk. The contributions of this paper are the following. We first analyze the portfolio of loans granted by the FED over time, both in terms of concentration and fragility. We then investigate the distribution of outstanding debt across institutions and across time. We also combine the FED dataset with data on equity investment relations among these institutions that received funding. Finally, in order to estimate the systemic importance of the various institutions, that takes into account in a recursive way the impact of the distress of one or more institutions to their counterparts across the whole network.

Officially called the Emergency Economic Stabilization Act of 2008, this bailout surpassed any previous government bailout by hundreds of billions of dollars. The principle mandate of the legislation was to authorize the US Treasury to buy risky and nonperforming debt from various lending institutions. These debts include: mortgages, auto loans, college loans, other ambigious loans. Part of the bill authorizes a cash infushion of $250 billion into the banking system to facilitate and encourage bank-to-bank loans and other types of lending. With the Treasury's purchase of a banks mortgage lender's bad debt (toxic assets), the resulting cash infushion will restore liquidity-and hopefully, confidence-to the banking system. Lending between banks and to consumers and business ventures is then expected to resume, thus lubricating the wheels of the US economy. This economy depends heavily on lending to finance many expenditures of the business community, including: wages, purchase of critical goods and services, supplies and commodities, equipment, new hiring, advertising and marketing, research and development, numerous other purchases necessary for the smooth functioning of a business. Funding the rescue plan is expected to come from a variety of sources. The US will borrow some of the money by issuing Treasury bonds and bills with short, mid, and long-term maturities. Japan is the largest holder of US Treasury Securities, and next is China and they are the largest creditors to the US and the financial system. A group of programs to stabilize the country's financial system, restore economic growth and prevent foreclosures in the wake of the 2008 financial crisis through purchasing troubled companies' assets and equity. The Troubled Asset Relief Program initially gave the Treasury purchasing power of $700 billion to buy illiquid mortgage-backed-securities and other assets from key institutions in an attempt to restore liquidity to the money markets, and prevent investors and depositors from making "bank and investment runs" on their withdrawing their money in case of failure of banks and investment firms. Furthermore, to restore and maintain open credit lines so banks would continue to give credit to businesses and clients. The fund was created October 3, 2008 with the passage of the Emergency Economic Stabilization Act. The Dodd-Frank Act later reduced the $700 Billion to authorization to $475 billion. Global credit markets came to a near standstill in September 2008, as several major financial institutions, such as Fannie Mae, Freddie Mac and American International Group, experienced severe financial problems, and as Lehman Brothers went bankrupt. Dolman Sachs and Morgan Stanley changed their charters to become commercial banks, in an attempt to stabilize their capital situations. TARP was intended to increase liquidity of the secondary mortgage markets by purchasing the illiquid MBS, and through that, reducing the potential losses of the institutions that owned them. A large percentage of newly originated mortgage are sold by their originator into the secondary market, where they are packaged into mortgage-backed securities and sold to investors such as pension funds, insurance companies and hedge funds.

During the Great Depression, as Roosevelt took the oath of office, national unemployment rate was nearing 25%. Eventually, countless Americans who had lost their jobs lost their homes as well, and the homeless population of the country grew accordingly. To solve this growing problem

To solve this growing problem, The Home Owner's Loan Corporation was created by the government, one of the principal government bailouts of the Depression era. The newly-created government agency purchased defaulted mortgages from banks and refinanced them at lower rates. About one million homeowners benefited from the lower fixed rates on their refinanced mortgages, usually written for a 15-year term, although upwards of two million had applied for help. Because there was no secondary market for packaged mortgages, the government held the mortgages until they were paid off. A variety of other government-financed programs were created to solve the severe national economic distress, which by 1933 had affected almost every sector of the economy. While these federal initiatives were not bailouts, strictly speaking, they provided the money and government support to create tens of thousands of new jobs, principally in public work. Some of the projects accomplished under the government programs were as follows: The Hoover Dam was built, new post office building were constructed around the country, writers were put to work writing state guidebooks, farmers received government price supports and subsidies for their produce and live stock, businesses were given subsidized funding.

Treasury sold its remaining shares in Ally Financial, its last remaining major stake from the $426 billion bailout of banks and the US auto industry. The Troubled Asset Relief Program was passed in 2008, in the wake of Lehman Brother's bankruptcy, as the nation's financial system was on the verge of collapse and economists feared another Great Depression. At the height of the bailout, Treasury owned a significant stake in all of the major US banks, such as Citigroup and Bank of America, two of the nations's big 3 automakers-general motors, Chrysler Group, and AIG. But with the sale of Ally Financial stock, Treasury now only holds stakes in 35 small community banks. Further reforms have been implemented such as legal protection of consumers from credit fraud and discrimination from banks as credit became harder to achieve because of the mass panic in the financial industry. In addition the Federal Reserve Board kept interest rates at 0% to encourage loans and credit use.

The AIG Bailout: In mid-September 200, the US government took control of AIG, one of the world's largest insurance companies. Private lenders declined to loan money to the financially troubled firm, prompting the federal government to take control of the company and guarantee to loan it up to 85 billion. In return for the 2 year, interest-bearing loan, the government took 79.9% equity position in AIG. Collateralized by AIG assets-principally the company's hefty insurance revenues- the government's risk was somewhat diminished. Provisions of the loan also require AIG to sell several of its marginal or unprofitable businesses, boosting the company's cash position and divesting it of some nonperforming debt. The federal seizure of AIG represents the first time ever that a private insurance firm was controlled by the government. This historic first was implemented when the Fed invoked provision of the Federal Reserve Act, which authorized loans to non-banks in creating specified emergency or unusual situations. The CEO of AIG was also forced to leave the company for fraud under the condition of the bailout.

Bear Stearns (holds mortgage related securities): In April 2008, the US government, through the Federal Reserve Bank of New York, rescued Bear Stearns by lending 29 billion to JP Morgan Chase to buy the financially troubled firm. JP Morgan Chase bought Bear at $10 a share, representing a huge loss for shareholders when shares were at $133 a share. Another long term solution was the joint partnership of CITIC Securities (state owned of China) with Bear Stearns in 2007. In December, Morgan Stanley would tap the Chinese sovereign wealth fund, and Merrill Lynch a Singapore government investment company. Lawmakers should have been pleased that capital had arrived to strengthen the wobbly American financial system. Counterparts connected to the informed decision to merge Bear Stearns/JP Morgan Chase was: European Central Bank, Bank of England, Bank of Japan. Additional capital inflows resulted from efforts by (mostly) emerging-market countries like China to promote exports and reduce imports by keeping their currencies undervalued. To keep the value of its currency artificially low relative to the dollar, a country must stand ready to buy dollar-denominated assets, and China had purchased hundreds of billions of dollars worth of US debt, including mortgage backed securities. Saudi Arabia and Russia dumped some of their US Treasuries last year.

China now has 1.24 trillion dollars in US Treasuries, and Japan has 1.13 trillion dollars of US Treasuries which were used to bail out the banks. In 2009, China owned an estimated 1.6 trillion dollars of US Securities. the US debt to China is 1.157 trillion as of September 2016. That’s 30% of the 3.901 trillion in Treasury bills, notes, and bonds held by foreign countries. The United States allowed China to become one of its biggest bankers because the American people enjoyed low consumer prices. Selling debt to China allows the US economy to grow by funding federal government programs. it also keep US interest rates low.

Freddie Mac and Fannie Mae: The federal government seized control of these private, yet government-sponsored, enterprises and guaranteed $100 billion in cash credits to each of them to prevent their bankruptcies. Freddie Mac and Fannie Mae were also victims of the subprime mortgage disasters. When Fannie Mae became a private enterprise in 1968, its charter permitted it to sell shares to public investors, who assumed that it had government backing. Fannie Mae was therefore able to borrow money at very favorable rates only slightly higher than the rate afforded US Treasury debt. Freddie Mac, created in 1970 to market mortgages offered by federal savings and loans institutions, was also eventually permitted to sell shares to the public in an arrangement with the government similar to that of Fannie Mae. What brought down these giants were mortgage loans to unqualified borrowers who secured inexpensive credit with minimal oversight by the lenders and, in too many cases, without income verification. when these loans became delinquent or defaulted, Fannie and Freddie sank deeper into financial trouble, and eventually the government had to bail them out.

Results: Credit concentration and fragility

We start our analysis of the dataset from the sum of the outstanding debt across institutions, which represents the total exposure of the FED, i.e. its total potential loss in case of default of the borrowers. This number rose very sharply in November of 2008, up to around USD 1.2 trillion, from where, in the following 12 months, it steadily decreased down to few billions. As a measure of concentration of the credit portfolio, we compute the Herfindhal index, H, of the outstanding debts. As shown, H remains around 0.05, meaning that, despite the large variation in the size of the exposure, the number of leading borrowers remained approximately around 20. What did not remain constant over time is the fragility of the leading borrowers, defined as debt-to-equity ratio. The weighted average, phi(t), of the fragility, which reflects the fragility of the largest borrowers, displays peaks in correspondance to the major events, such as Bear Stearns case (march 2008) and the drop in stock market value as of March of 2009. Remarkably, when the total exposure of the FED still amounted to 900 billions, the debt of the leading borrowers was more than 6 times larger than their market capitalization.

Exposure, concentration and fragility of the FED:

Plotted over time of the total exposure of the FED, Herfindhal index H of the FED credit portfolio. The effective number of borrowers is given by the reciprocal of H, which varies between 10 and 30. The peaks correspond to major distress evens (i.e. the rescue of Bear Stearns in March 2008, the Citigroup big losses 2.8 billion in October of 2008 and the market drop of March 2009. Big peak of fragility caused by the  shock of Lehman Brothers default.

The values of debt are rescaled by the total debt across institutions at 30 day intervals. The values of debt are resealed by the total debt across institutions. The hypothesis that the distribution of debt across institutions is a power law is rejected by statistical tests in all periods. This contrasts with what was found in previous studies on the distribution of debt, and more in general in various economic contexts. However, here we are in presence of emergency loans for which not every firm is eligible. It is thus likely that small institutions are under-represented in this dataset and that there is also an upper limit on the loans, which would explain the observed deviation from a power law. A) We split the data into 3 phrases: 1) Beginning of the crisis (from August, 2007 until April 2008), where the FED’s exposure is below USD 20 billion; 2) Plateau (April, 2008 till October 2008), where the exposure raises and stays around 380 billion for 3 months; 3) Peak and decline (October, 2008 until April, 2010), where the exposure peaks in a short span of time and starts to decline at a slower rate, due to a parallel toxic asset purchasing program.

Section 3) We have chosen 10 representative periods of 30 days, as shown in the inset. For each period, debt values across days were pooled together in order to increase the statistics (under the assumption that such data are generated by the same stochastic process). The main plot shows the empirical complementary cumulative distributions of outstanding debt, computed in each of the 10 periods. For each distributions within the same phase look similar. B) The debt of the top 100 institutions (be average debt) is represented as a topographic map where the color indicates the debt of each institution as a percentage of its own maximum debt: from green to yellow, to red (respectively, 0-30%, 30%-70%, 70-100%). The institutions are sorted by their peak date, from upper left to bottom: institutions having an earlier peak are in the upper left corner of the plot. The inset figure shows an histogram counting how many institutions were in their peak of debt each month. Note that in the worst case almost 30 institutions where in their maximum level of debt at the same time, thus indicating a high degree of synchronicity. Statistical tests suggest that the functional form of the distributions is the same across periods and that their parameters are more similar within the same market phase. This can be seen where the curves in blue and violet cluster together. This is a remarkable finding, in particular during the third phase, since the total amount of debt to the FED varied in time by almost one order of magnitude (from USD 1200 billion in January of 2009 to less than USD 200 billions in October of 2009). A trivial explanation of the scaling behavior would be that at each point in time the FED lends to all institutions in the same proportion and that only the amount varies. The analysis of the outstanding debt pattern over time across the top 100 borrowers, shown rules out this explanation. We find that although about 30 institutions reached their respective peak of debt in the same period, many others had their peak few months earlier or later. Moreover, while for some institutions the debt declined rapidly, for other it declined slowly. Given the heterogeneity across the debt patterns, the similarity of the debt distributions seems to be an emerging property of the system. Further evidence of this property comes from complementary data on the FED balance sheet. We find that the equivalent amount that was paid back by the institutions reappears on the FED balance sheet as mortgage backed securities. This suggests that as banks started to pay back their debt, the FED began to buy from them the toxic assets which were at origin of the crisis.

Network Analysis:

In a network perspective, nodes represent institutions, while directed edges represent lending relations weighted by the amount of the outstanding debt. The network has a simple structure (a star with the FED in the center) although it is known that these institutions had also many financial dependencies among each other. Indeed, it is part of the normal business of financial firms to invest in other firms by utilizing various lending mechanisms and by acquiring equity stakes. Unfortunately, information on the former type of investment is not available because of confidentiality issues, especially because these are global firms from different countries. However, previous work has shown that the equity investment network of transnational corporations (TNC) has a bow-tie structure with financial firms in the core forming a tightly connected structure. We thus match the FED dataset with data on equity investment relations at the end of 2007 (i.e. at the beginning of the FED discount window data time span). We then focus on the 22 institutions that received, on average over the 10 periods, more than USD5 billion. TITLE: Debt Rank: Too Central to Fail? Financial Networks Framework, the Fed, Global Bailouts, US Emergency Lending, and Systemic Risk

Systemic risk, here meant as the risk of default of a large portion of the financial system, depends on the network of financial exposures among institutions. to fill this gap, we introduce DebtRank, a novel measure of systematic impact inspired by feedback-centrality. We analyze a new and unique dataset on the USD 1.2 Trillion GED emergency loan program to global financial institutions during 2008-2010. we find that a group of 22 institutions, which received most of the funds, form a strongly connected graph where each of the nodes become systematically important at the peak of the crisis. the results suggest that the debate on too big to fail institutions should include the even more serious issue of too central to fail. Indeed, the recent economic turmoil has raised a broad awareness that the financial system should be regarded as a complex network whose nodes are financial institutions and links are financial dependencies. in this perspective systematic risk is meant here as the risk of a systemic default, i.e. the default of a large portion of the financial system. It can be quantified and measured from the analysis of the dynamical evolution of the nodes and from the structure of the network. The main open question regarding financial networks concerns the determination of the so called "systemically important" financial institutions, namely the ones that, if defaulting can trigger a systemic default are thus to be considered "too big to fail."

In the US, the financial crisis reached a peak in the period March 2008-March 2010. During this time, many US and international financial institutions received aid from the US Federal Reserve Bank (FED) through emergency loans programs, including the so called "Fed Discount Window." The amount and the recipients of these loans were not disclosed until very recently. This data represents, to our knowledge, the first data set, publicly available, on the daily financial exposures between a central bank and a large set of institutions over several months. Here, we instead present an analysis from the perspective of complex financial networks and systemic risk. The contributions of this paper are the following. We first analyze the portfolio of loans granted by the FED over time, both in terms of concentration and fragility. We then investigate the distribution of outstanding debt across institutions and across time. We also combine the FED dataset with data on equity investment relations among these institutions that received funding. Finally, in order to estimate the systemic importance of the various institutions, that takes into account in a recursive way the impact of the distress of one or more institutions to their counterparts across the whole network. The overwhelming majority of pairs of nodes (99.1%) are at a distance 1 or 2 from each other. The structure is relatively homogenous with a high density of connections. This finding suggest, in the lack of alternative information, to take as a proxy of the financial dependencies among institutions the network of their mutual equity investments, appropriately normalized.

DebtRank and systemically important institutions:

In order to estimate the impact of a node on the others, we then introduce DebtRank, a novel measure inspired by feedback centrality, that takes recursively into account the impact of the distress of an initial node across the whole network. Ri is a number measuring the fraction of the total economic value in the network that is potentially affected by the distress or the default of node I. DebtRank can be used to construct a ranking but it is not itself the rank of the node. Its computation differs from the methods based on the default cascade dynamics in which below the threshold no impact is propagated to its neighbors. Feedback centrality has a physical analogy with the inflow in a non homogenous diffusion process. In presence of a cycle in the network there is an infinite number of reverberations of the impact of a node to the others and back to itself, which leads to no simple and measurable economic interpretation.

We apply the computation of DebtRank of the Fed by carrying out experiments. In the first one, for each node I, we computer DebtRank in the case of its default (i.e.psi=1). We taken into account the level of market capitalization of the nodes. The diagrams display the structure of the network and allow at the same time, to compare the values of DebtRank of any pair of institutions. A high value of DebtRank and centrality will be used interchangeably in the following. At the peak of the crisis all nodes become more central, meaning that the default of each of them would cause a larger economic loss in the network. The color of the bubbles reflected the fragility of institutions (i.e. debt over equity ratio). We observe that towards the peak of the crisis most institutions have high values of DebtRank. This implies that each bank was more likely to default on its own, and moreover, that in case of default, it would cause a larger loss. We find that even in a conservative scenario (e.g. we assume that in the first months of 2008 each bank had enough core capital to withstand at least the default of 5 counterparties, alpha=2), most of the 22 institutions become very systemically important at the peak of the crisis. In contrast, in period 4 (average 0.52-+0.20), many institutions are able, alone, to affects more than 80% of the total value in the network, despite the fact that in terms of asset size they represent less than 10% of the total.

The Network of the Top Borrowers:

Thus closer a node is to the center the higher is it DebtRank (centrality).  A node in the center (DebtRank=1) is able to put under distress the entire economic value of the network. DebtRanks decreases by moving outwards and leftwards along the spiral. However, they are also much more central, i.e., they can impact a large fraction of the total economic value. A single default is likely to trigger a systemic failure.

DebtRank Asset Size and Fragility:

Scatterplot of DebtRank versus asset size, measured as a fraction (in%) of the total of the asset size in the network. Notice that institutions such as UBS or Citigroup alone account for almost 10% of the total assets. The size of each bubble is proportional to the outstanding debt of the institutions  while the color reflects its fragility, defined as the ratio of debt over market capitalization in the given period, as in previous section. A) Period one Since the outstanding debt was very low to zero most nodes appear small and have levels of DebtRank below 0.3, but comparable among each other. B) Period 4. Many institutions have a DebtRank larger than 0.5, i.e. each can impact, along, the majority of the economic value in the network. The outstanding debt in this period is close to the peak for all the institutions, as reflected by the size of the bubbles. Notice, also  a higher fragility, most bubbles are red, although with some heterogeneity. We compute DebtRank in the situation in which none of the nodes in the network defaults initially but all are at a level psi<1 of distress. We refer to this case as Group DebtRank. We find that initial shocks always generate an impact larger than the shocks themselves even in the periods preceding the peak of the crisis. For instance, with psi=0.1, I.e. an initial shock of 10%, the total loss varies across periods from a minimum of an institution i to another, j, depends both on the relative exposure and the capital buffer of i. It follows that the impact of i over j can be larger than the relative exposure of j to i. Indeed financial institutions, by seeking for profit, tend to be highly leveraged, I.e. to have small capital compared to total assets. This is how they system can end up in a situation in which a small loss can lead to systemic default. DebtRank is the only one that delivers a clear response well before the peak of the crisis. This feature makes it s a better candidate as a possible early warning indicator. Moreover, DebtRank has the precise meaning of economic loss, measured in dollars caused by the distress or default of a node.

Discussion:

While the number of leading borrowers to the Fed only varies between 10 and 30, the fragility of the portfolio reflected closely the major events of distress in the market. We also find that the distribution of debt across institutions has the same functional form over time. In order to estimate the systemic important of a node, or a group of nodes, we introduce DebtRank, a novel metric feedback centrality measures, taken into account recursively all paths in the network. By matching the Fed data the same period, we find that the largest borrowers were interconnected in a dense network. Each of them was very central and could impact significantly every other node in only one or two steps. Moreover, we find that a small shock to the system as a whole could get amplified by the many paths in the network into a systemic default. Existing are the densely connected cores in financial networks.

Data:

Data consists of daily time series of outstanding debt and market capitalization of 407 institutions in a period of 1004 days spanning from August 2007 to June 2010. Outstanding debt refers here to the amount owned by an institution to the Fed as a result of the emergency loans granted by the Fed via the so called discount window and varies emergency programs. This means that these were loans for which the Fed was lender of last resort. We have also obtained and analyzed the original dataset. This data is unique since information on this kind of loans were never disclosed before. In addition, they refer to the crucial phase of the financial crisis. Data includes equity shares owned by a firm in another one in the last quarter of 2007.

The Herfindhal index is a common measure in size concentration:

H(t) = Sigma i^n= 1di(t)^2/ (Sigma i^n =1di(t))^2

where di (t) denotes the outstanding debt of the borrower i at time t. When the debt is equally distributed among n institutions, H=1/n. In contrast, when all of the institutions except one have zero debt, then H=1. Thus the inverse of H is a measure of the number of leading borrowers. For instance, in the case of 3 institutions with debt values equal to 0.8, 0.1, 0.1 the Herfindhal index is H=o.8^2 + 0.1^2 + 0.1^2= 0.66 and H^-1=1.5. The higher the debt (relative to the market capitalization of an institution) the weaker the institution, financially speaking. Thus, the ratio phi(i)(t)= di/ei captured its financial fragility at time t. The following weighted average gives them a measure of fragility at time t. The following weighted average gives them a measure of fragility of the entire Fed credit portfolio.

Phi(t) = sigma i^n=1phi i(t)di(t)/ (sigma i ^n=1di(t))

The debt weighted average ensues that the fragility values of the institutions with larger debt count more.

DebtRank Methodology:

We introduce a directed network in which the nodes represent institutions and the links represent financial dependencies. We denote the amount invested by i in the funding of j as Aij. Thus, As is the weighted adjacency matrix of the investment network. The total value of the asset invested by i in funding activities is Al=Sigma Ail. We denote by Ei the capital of I (more precisely, tier 1 capital), which represents the capital buffer of i against shocks when Ei<-y the firm defaults, where y is a positive threshold. Further details on the structure of the balance sheet in relative to a financial network can be found in previous work. If node i defaults, the node j faces a loss of Air (we exclude in the short run, any recovery of the assets invested in i), and the node j also defaults if Aji>Ej. We will account later on for the case of the node j not defaulting but going only under distress. We define the impact of i on j as Wij=min(1, Aji/Ej). Thus, if the loss exceeds capital, the impact is 1. Notice that the matrix W is, in general, neither column stochastic nor row stochastic. We further taken into account the economic value of the impact of i on j by multiplying the impact by the relative economic value of the node j, vj,=Aj/EIAI (other proxies can be taken for vj). The value of the impact of i on its neighbors is then Ii=sigmajWijvj. It measures the fraction of economic value in the network that is impacted by I directly. We now want to take into account the impact of i on its indirect successors, that is, the nodes that can be reached from i and are at distance 2 or more. In analogy to the feedback centrality we could define the impact in terms of the following recursive equation Ii=sigmajWijVj + BsigmajWijIj, where the second term accounts for the indirect impact via the neighbors. the parameter B<1 is a dampening factor. In vector notation, we have I=Wv +BWI, which yields I= (I-BW)^-1 Wvsigmakinfinite=0(B^kW^k)Wv, as long as the largest eigenvalue of W is smaller than 1/B.

However, if 2 nodes i and j are connected in a cycle (Wij>0 and Wji>0), the impact of node I to j hits back on i and keeps cycling an infinite number of times (although with dampening). A SINGLE REVERBERATION OF THE IMPACT OF I BACK TO ITSELF IS REALISTICALLY MATHEmatically acceptable. Further reverberations lead instead to an inconsistency because the impact could become larger than one. The reason is that if the impact walks its way several times through a cycle, then we are counting the impact of a node on another on more than once. The same problem applies to any cycle not involving i, but located downstream of I in the network. Removing the cycles altogether from the network and considering its corresponding acyclic graph would remove entirely the reverberation and cut many links, thus strongly underestimating the impact.

To each node we associate 2 state variables. hi is a continuous variable with hiE(0,1). Instead si, is a discrete variable with 3 possible states, undistressed, distressed, inactive: siE(U,D,I). Denoting by Sf the set of nodes in distress at time 1, initial conditions are: hi(I)=psiAiESf, hi(I)=0AiESf, and Si(I)=D,AiWSf; Si(I)=UAiESf. The parameter psi measures the initial level of distress: psiE(0,1), with psi=1 meaning default.

For all i and for t>2, where all variables hi are first updated in parallel, followed by an update in parallel of all variables si. After a finite number of steps T the dynamic stops and all the nodes in the network are either in state U or I. The intuition is that a node goes in distress when a predecessor just went in distress and so recursively. The fraction of propagation distress is given by the impact matrix Wij. Because Wij<-1 the longer the path from node I initially in distress and node j, the smaller is the indirect is the indirect impact on j. Notice that a node that goes in the D state, will move to the I state one step later. This means that if there is a cycle length of 2 the node will not be able to propagate impact to its successor more than once. The DebtRank of the set Sf is defined as:

R=sigmahj(t)vj- Sigmahj(I)vj

where R measured the distressed induced in the system, excluding the initial distress. If Sf is a single node the DebtRank measures the systemic impact of the node on the network. In this case, it is of interest to set psi=1 and to see the impact of a defaulting node. If Sf is a set of nodes it can be interesting to compute the impact of a small shock on the group. Indeed, while it is trivial that the default of a large group would cause the default of the whole network, it is not trivial to anticipate the effect of a little distress acting on the whole group.

DebtRank Empirical Application:

The values of the credit exposures are unknown. However, the values of investment of each node j in the equity of I, Zji, are available. We then take them as a starting point to construct a proxy of the impact of node I. We normalize their values, Wij= Zji/sigma IZjI

In this way, the maximum impact on j across the nodes l equals a. For instance if alpha=0.2, j can withstand the default of 1/0.2=5 or more counterparties before defaulting itself: A quite conservative scenario. Notice that the value a=0.2 is the average ratio Aji/Ei that was observed at the end of 2007 in the Brazilian interbank network, the only case for which information is published. We run experiments a=0.2. Finally we want to account for the fact that the market capitalization of the largest borrowers on the stock market decreased significantly in the first half of the time span of the data. We do so by rescaling the impact of a node on another accordingly, with the constraint that it does not exceed one. The final expression used for impact was

Wij=min(1, xWij/maxl*Wlj) * (Ej(I)/Ej(t)

OWNERSHIP NETWORKS AND CORPORATE CONTROL: MAPPING ECONOMIC POWER IN A GLOBALIZED WORLD

The measurement of the concentration of control which is found to be much higher than what was usually hypothesized by scholars and held in the public opinion. for instance, we find that in Anglo-Saxon countries where ownership at the local level tends to be dispersed among numerous shareholders, control is found to be highly concentrated at the global level, namely lying in the hand of a very few shareholders. Interestingly, the exact opposite seen for European countries. This allows the interconnectedness of the key economic actors to be understood: the most powerful actors are not operating in isolation but are instead all interconnected in a tightly-knit group. Such a structure can align the interests of the group members and make them behave as a single economic “super entity,” with implications for market competition and financial systemic risk.

What is the distribution of control? Are the control structures fragmented or integrated? Are there aggregate organizational structures comprised of important corporations to be discerned? Who are the key economic actors? What is the role played by the financial sector? In order to answer these questions, we develop a novel methodology, present two large-scale empirical network analysis, and contrast the findings with a new model of network formation.

The main methodology: Computing control in ownership networks On the one hand, the issue of how control can be computed directly from the knowledge of ownership relations needs to be understood. On the other hand, the details of how control propagates in a network have to be uncovered. Crucially, the methodology not only has a straight forward interpretation from the point of view of economics but it also relates to the important notions centrality and flow relevant in the study of complex networks with algorithmic, empirical, and qualitative solutions.

The Flow of Control: In order to extract the backbone of complex networks based on the weight and direction of links, as well as non-topological properties of nodes, we should how the procedure can be applied in general to networks in which mass or energy is flowing along the links. Namely how control and wealth is structured and concentrated across national markets. Reporting on the first cross-country investigation of ownership networks, focusing on the stock markets of 48 countries around the world. Encompassing analysis through a transnational lens, where business activities flow beyond national borders, with an emphasis of analyzing on business activities and processes in all areas, not just exclusive to a nation.

The Network of Global Corporate Control: The study of corporate control has neglected so far the international network of ownership and has not evaluated to what extent control is concentrated. In this chapter, we present an extensive analysis of control in the network surrounding transnational corporations worldwide. Uncovering its topological structure, which encompasses a pattern and structure where the economic actors are organized hierarchically in one giant structure, where control is distributed even more unequally than economic value. A large portion of control flows to a small tightly knit core of mainly Anglo-Saxon financial institutions, which collectively hold shares in each other. This core can be seen as a “super entity,” raising issues for economic policies in a global market.

The Bow-Tie Model of Ownership Networks: What network-formation model gives rise to the observed empirical patterns? We try to understand what structures are expected in random networks. Then we proceed to devise a generic framework able to reproduce arbitrary bow-tie topologies.  

In terms of hegemonic or homogenous financial and economic behavior and activities, or evidence of banking collusion through fiscal and monetary policy making and regulation internationally, can be further explored and analyzed through the policies constructed at the Bank for International Settlements. The Rothschild owned prestigious international bank with powerful diplomatic immunity bound to no government or political faction (financial transnational borderless nations) shrouded in omnipotent seductive secrecy and WW2 Hitler controversy that heavily controls and influences majority of central banks around the world and its functions in the process of creating money and setting the currency exchange rates/values. I will go into further detail and discussion in a later chapter. “Control the printing of money, control the markets/economy and we the people.” On average the central bankers at the Federal Reserve Board meet at the BIS (Bank for International Settlements) twice a year, and during the financial crisis of 2007 and 2008, meetings were more prevalent and frequent. With swarming rumors of Homo Capensis (a homonid species, but not homo sapient sapien like all of us with larger brains) working as mathematicians at the BIS, and taking out attempted improper loans through the World Bank. It has been rumored more Homo Capensis species live in the Vatican, and the tall hats cover their large skulls. They also work at the Vatican Bank that handles bribery accounts, or rather donations. Further tales of scandalous financial criminal activity of currency manipulation at the BIS will be discussed.

Schematic illustration of a stylized ownership network: nodes represent shareholders and firms, the directed weighted link Wij denote the percentage of ownership; the nodes representing companies carry a non-topological state variable vj, acting as a proxy for their value or size. Furthermore, the quantity vj acts as a proxy for the intrinsic or underlying value of the firm j. Common choices are market capitalization, total assets or the operating revenue. While the market capitalization, being defined as the number of outstanding shares times the firm’s market price, is a good proxy for the generic value or size of a firm, market prices. Taking total assets as a proxy for the size of firms results in a heavy bias in favor of banks. Operating revenue, defined as the net sales revenue accruing from the primary business operations of a firm, is a measure which is widely available.

In terms of the financial crisis of 2008, and the bail outs, the US government’s intervention of saving large banks and financial institutions was based on criteria of the “interconnectedness” of a bank’s structure and their relationship to triggering and influencing systemic failure, risk, and default due to the concentration of power, control, and ownership evident in the network of global corporation control.

“You mentioned several large firms that came under pressure in 2008 and also the Fed’s doctrine, too big to fail. Where do you draw the line between bailing out a bank and allowing it to fail? Ben Bernanke states, These firms proved to be too big to fail in the context of a global financial crisis. That was a judgement we made at the time based on their size, their complexity, their interconnectedness, and so on.” Further “stress tests” on 19 of the largest banks of the banking network of global corporate control were conducted by the Federal Reserve Board and Treasury Department to see if they could withstand the financial crisis.

Please see article 4 and 5. Articles 4 and 5 are a bit more intellectual and academic based, with performance review of the banks regulators and US government. With data coming from other US government performance review agencies. This is specifically tailored information for my clients who are specifically governments internationally and for the financial firms of investment banking, banks, academic Universities, and insurance companies. Economic modeling and statistical analysis performed by the Federal Reserve Board has been challenged by former Fed chairman Alan Greenspan, with his critiques deeming those tests as not accurate, which will be further discussed in a later article. Furthermore, based on academic studies, 22 institutions all failed at once (systemic failure) at the peak of the crisis, but the stress tests performed by the US Treasury Department and Federal Reserve only tested 19 banks, which shows their test was limited and did not include the other banks that were part of the financial network of global control. I have distinct writing styles and literature choices according to my audience, as I have a diverse plethora of clientele.

THE BANK FOR INTERNATIONAL SETTLEMENTS: THE WORLD’S MOST POWERFUL BANK (THE INTERNATIONAL HEGEMONIC, OMNIPOTENT,  AND HOMOGENOUS BANK)

The world’s most exclusive club has eighteen members. They include a good number of those powerful people in the world. These men-they are almost all men-are central bankers. They have come to Basel to attend the Economic Consultative Committee (ECC) of the Bank for International Settlements (BIS), which is the bank for central banks. Its members include Ben Bernanke, former chairman of the US federal reserve bank: Sir Mervyn Kind, the governor of the Bank of England (now replaced by Mark Carney); Mario Draghi, of the European Central Bank; Zhou Xiaochuan of the Bank of China; and the central bank governors of Germany, France, Italy, Sweden, Canada, India, and Brazil, Jaimie Caruana, a former governor of the Bank of Spain, the BIS’s general manager, joins them.

Before King stepped down as governor of the Bank of England in June 2013, he chaired the ECC. The ECCm which used to be known as the G-10 governor’s meeting, is the most influential of the BIS’s numerous gatherings, open only to a small, elect group of central bankers from advanced economies. The ECC makes recommendations on the membership and organization of the three BIS committees that deal with the global financial system, payments systems, and international markets. The committee also prepares proposals for the Global Economy Meeting and guides its agendas.

That meeting starts at 9:30 am on Monday morning, in room B and lasts for three hours. There King presided over the central bank governors of the thirty countries judged the most important to the global economy. In addition to those who were present at the Sunday evening dinner, Mondays’ meeting will include representatives from for example Indonesia, Polan, South Africa, Spain, and Turkey. Governors from fifteen smaller countries such as Hungary, Israel, and New Zealand are allowed to sit in as observers, but do not usually speak. Governors from the third tier of member banks, such as Macedonia and Slovakia, are not allowed to attend. Instead they must forage for scraps of information at coffee and meal breaks.

King took a very different approach than his predecessor. Jean-Claude Trichet, the former president of the European Central Bank, in chairing the Global Economy Meeting, Trichet, according to one former central banker, was notably Gallic in his style: a stickler for protocol who called the central bankers to speak in order of importance, starting with the governors of the Federal Reserve, the Bank of England, and the Bundesbank, and then progressing down the hierarchy. King, in contrast, adopted a more thematic and egalitarian approach: throwing open the meetings for discussion and inviting contributions from all present.

The governors’ conclaves have played a crucial role in determining the world’s response to the global financial crisis. The BIS has been a very important meeting point for central bankers during the crisis, and the rationale for the existence has expanded, said King. We have had to face challenges that we have never seen before. We had to work out what was going on, what instruments do we use when interest rates are close to zero, how do we communicate policy.

Those discussions, say central bankers must be confidential. “When you are at the top in the number one post, it can be pretty lonely at times. It is helpful to be able to meet other number ones and say, “This is my problem, how do you deal with it?” King continued. Being able to talk informally and openly about our experiences has been immensely valuable. We are not speaking in a public forum. We can say what we really think and believe, and we can ask questions and benefit from others.

And the conversation is usually stimulating and enjoyable, say central bankers. The contrast between the Federal Open Markets Committee at the US Federal Reserve, and the Sunday evening of the G-10 governors’ dinners was notably, recalled Laurence Meyer, who served as a member of the Board of Governors of the Federal Reserve from 1996 until 2002. The chairman of the Federal Reserve did not always represent the bank at Basel meetings, so Meyer occasionally attended. The BIS discussions were always lively, focused and though provoking. At FMOC meetings, while I was at the Fed, almost all the Committee members read statements which had been prepared in advance. All G summit meetings are well prepared and written by the US Federal Reserve for the President of the US, the president rarely writes his own according to Ben Bernanke. They were rarely referred to statements by other Committee members and there was almost never an exchange between two members or an ingoing discussion about the outlook or policy options. At BIS dinners people actually talk to each other and the discussions are always stimulating and interactive focused on the serious issues facing the global economy.

All the governors present at the two-day gathering are assured of total confidentiality, discretion, and the highest levels of security. The meetings take place on several floors that are usually used only when the governors are in attendance. The Swiss authorities have no jurisdiction over the BIS premises. Founded by an international treaty, and further protected by the 1987 Headquarter Agreement with the Swiss government, the BIS enjoys similar protections to those granted to the headquarters of the United Nations, the International Monetary Fund (IMF) and diplomatic embassies. The Swiss authorities need the permission of the BIS management to enter the banks’s buildings, which are described as “inviolable.”

The BIS has the right to communicate in code and to send and receive correspondance in bags covered by the same protection as embassies, meaning they cannot be opened. The BIS is exempt from Swiss taxes. Its employees do not have to pay income tax on their salaries, which are usually generous, designed to compete with the private sector. The general manager’s salary in 2011 was 763,930 Swiss francs, while head of departments were paid 587,640 per annum, plus generous allowances. The banks’s extraordinary legal privileges also extend to its staff and directors. Senior managers enjoy a special status, similar to that of diplomats, while carrying out their duties in Switzerland, which means their bags cannot be searched , and their papers are inviolable. The central bank governors traveling to Basel for the bimonthly meetings enjoy the same status while in Switzerland. All bank officials are immune under Swiss law, for life, for all the acts carried our during the discharge of their duties. The bank is a popular place to work and not just because of the salaries. Around six hundred staff come from over fifty countries. The atmosphere is multinational and cosmopolitan., albeit very Swiss, emphasizing the bank’s hierarchy. Like many of those working for the UN or the IMF, some of the staff of the BIS, especially senior management, are driven by a sense of mission, that they are working for a higher, even celestial purpose and so are immune from normal considerations of accountability and transparency.

The bank’s management has tried to plan for every eventuality so that the Swiss police need never be called. The BIS headquarters has high-tech sprinkler systems with multiple back ups, in house medical facilities, and its own bomb shelter in the event of a terrorist attack or armed conflagration. The BIS’s assets are not subject to civil claims under Swiss law and can never be seized.

The BIS strictly guards the bankers’ secrecy. The minutes, agenda, and actual attendance list of the Global Economy Meeting or the ECC are not released in any form. This is because no official minutes are taken, although the bankers sometimes scribble their own notes. Sometimes there will be a brief press conference or bland statement afterwards but never anything detailed. This tradition of privileged confidentiality reaches back to the bank’s foundation.

What then, does this matter to the rest of us? Bankers have been gathering confidentiality since money was first invented. Central bankers like to view themselves as the high priests of finance, as technocrats overseeing arcane monetary rituals and a financial liturgy understood only by a small self selecting elite.

But the governors who meet in Basel every other month are public servants. Their salaries, airplane tickets, hotel bills, and lucrative pensions when they retire are paid our of the public purse. The national reserves held by central banks are public money, the wealth of nations. The central bankers’ discussions at the BIS, the information that they share, the policies that evaluate, the opinions that are exchanged, and the subsequent decisions that are taken, are profoundly political. Central bankers, whose independence is constitutionally protected, control monetary policy in the developed world. They manage the supply of money to national economies. They set interest rates, thus deciding the value of our savings and investments. They decide whether to focus on austerity or growth. Their decisions shape our lives. The BIS has extraordinary world power in its ability to create money, establish the values of money, control the circulation of money through setting the interest rates, and deciding how much money is in world circulation among the world’s population. Those who control the money supply, control the markets and economies, and control the global population.

Money is only a form of energy because everything is and today it is mostly electronic data called credit passing around a global computer system with cash being rapidly taken out of circulations. Economics is only a social extension of a natural energy system…Since energy is the key to all activity on the face of the earth, it follows that in order to attain monopoly of energy, raw material goods, and services and to establish a world system of slave labor, it is necessary to have a first strike capability in the field of economics. This theme of creating a banking system that the target population does not understand was captured by a member of the Rothschild dynasty called Nathaniel Meyer Rothschild. He apparently told a group of international bankers in 1912: The few who could understand the system will either be so interested in its profits, or so dependent on its favours, that there will be no opposition from that class, while on the other hand, the great body of people, mentally capable of comprehending the tremendous advantage that capital derives from the system, will bear its burdens without complaint, and perhaps without even suspecting that the system is inimical to their interests. And so it was and still is, Silent Weapons.

Booms and busts, war and peace, are all factored into the computer model to push human society ever closer with maximum speed and efficiency to an Orwellian global state. Is it not so true in this distorted world that human life is indeed measured in dollars? All this is a form of mass energy vampiring too. As money passes through our lives some of our own energy-life force-attached to the electromagnetic information fields that we call money. This energetic attachment is made during our temporary ownership or possession. When this money returns to source through the repayments of loans and interest, taxation in all its forms and spending money with corporations, etc. This is the vamping of the creative energy and imagination of the human masses which the Archons don’t have.

The systematically ignorant masses see money as something tangible-a coin, a note or even a credit card. It exists, it’s real. I mean, it buys things doesn’t it? But the Archons know that money is an energetic figment of programmed imagination. There is no money as human believe it to be, only a perception of money as they believe it to be. What is a coin really worth? Only the value of its metallic content and even then only what someone is prepared to pay in given circumstances. In other words, next to nothing and often nothing. What is a paper note worth no matter what the size of the number imprinted upon it? The value of the paper that’s all, but then who would want to buy little bits of paper already made unusable by the printing all over them? What is electronic money really worth? Nothing. It is only an electronic computer code and what value or use to anyone is that in and of itself? Quite obviously money is virtually worthless and most of it completely so. The perception of its value, and so its ability to purchase, comes from the perception of its value. This perception is embedded in the human psyche by those that control and report the system. A currency can be made to leap or crash in perceived value simply by circulation a rumor of an economic positive or negative. It doesn’t have to be true and often isn’t because the manipulators know that the value of money is not a reality that becomes a perception but a perception that becomes a reality. What we call money is known as “fiat” currency. The definition of fiat is: Paper money or coins of little or no intrinsic value in themselves and not convertible into gold or silver, but made legal tender by fiat (order of the government). We are living in a debt enslavement system, with a monetary system used to control, empower, or suppress the population. Money is created out of debt, where money is created through national debt spending. Taxation was created by the Bank of England to create money out of debt, and majority of our taxes go back to the network of global corporate control, where only a small percentage of taxation goes to the government. The term fiat comes from the Latin meaning of let it be done, it shall be. This nicely describes the process in which money with no value is given the perception of value because governments say it has value. Yes, the same government owned the Archon networks that also owns the banks and financial houses. The currency for economic interaction was once something of value to the receiver-anything from gold to guns to furs. It was based on I’ll give you this is return for you giving me that. Then paper money was introduced but its value was still backed by the ability to convert it into gold at a fixed price whenever you wanted. The their stage was the one that launched today’s economic madness and free for all when paper money became the currency, but was backed by nothing. Its value was all in the mind in a whole new way and this has become even more extreme by the rapid replacement of worthless paper money with worthless digital money. The transition made one of its biggest steps in this Totalitarian Tiptoe with the Bretton Woods Agreement in 1944 when the engineered World War 2 was used as the problem-reaction solution to impose a new global economic order that handed the world and lives of the masses to a handful of bankers in the Rothschild-Rockefeller financial cartel. Delegates from 44 victorious allied countries met at the Mount Washington Hotel in Bretton Woods, to agree a fully negotiated monetary order intended to govern monetary relations among independent nation states. The gathering also established the International Monetary Fund (IMF) an the International Bank for Reconstruction and Development which is now part of today’s World Bank. The centralization of global financial control had taken a giant leap overnight and when President Nixon (his handler Henry Kissinger) ended the convertibility of the dollar into gold in 1971 the worldwide fiat money system had arrived. By the way, President Nixon was impeached because he wanted to tell the public of the existence of extraterrestrials, so the military industrial complex in order to keep it secret, threatened to kill him if he did not resign, according to shadow government documents.

Banking, lending money that doesn’t exist:

Worthless fiat money goes hand in hand with fractional reserve lending which allows banks to lend money that doesn’t exist and charges interest on it. This criminal activity is perfectly legal because you can turn any criminal organization into a political or financial one by simply legalizing every crime you’re going to commit. The Archon networks that control the banking and political systems had their governments pass laws that allowed banks to lend at least ten times what they have on deposit or in reserve-hence it is called fractional reserve lending. This means that every time you put a dollar theoretically into a bank you are giving the bank the right to lend to another nine or ten that it doesn’t have and charge interest on it (far more than in reality). This is how money is created. It is private banks overwhelmingly and not governments that put money into circulation by making loans of non-existent money called credit. These money-creating banks are ultimately controlled by the same Archontic networks and this means that the Archons and their bloodlines can create economic booms or busts at will by creating more money or removing it from circulation (as in the credit crunch after the engineered crash of 2008). This is what we call the economic system: When people and businesses go to a bank for a loan, say 50,000 where does the money come from? It is manifested out of fresh air by typing into your account 50,000. That’s it. The banks can lends around ten dollars-at least-for everyone they have on deposit and so the bank does not have to own the 50,000 to lend it to you. It is all a gigantic conjuring trick and based on lending non existent money called credit. From the moment you have the 50,000 keyed into your computer account you become liable to paying back the money which has never existed, plus interest. Should the borrower be unable to do that at some point because of a lost job and bank induced economic downturn then the bank gets whatever assets they gave as collateral then the gets whatever assets they gave as collateral for the non-existent loan-their home, business, car, land, farm, and so on. The Archon banking system has in this way stolen legally much of the wealth of the world in return for worthless paper and computer codes. This makes banking the most potent example of what the Archons are: parasites. They feed off the efforts and creativity of other and steal that energy in the form of money. When people spend their loan say 10,000 of the original 50,000 to buy a car, the receiver of that money (non existent credit) deposits 10,000 with his or her bank. Now the second bank can lend ten times the 10,000 which came from the original 50,000 that was conjured our of nothing as credit in the first place. Every loan goes on creating more and more non-existent credit for as long as it continues to circulate the banking system. When people buy a house with a mortgage the bank is lending them transferred to their screen and then they are transferred again to the screen of the seller between computer programs. Ask most economists and television financial correspondent’s and experts how money is created and they will look at you with blank eyes or give you some bullshit story that isn’t true.

When the bank gives you a non existent loan of non existent credit you are pledged to pay back the principle with interest. The problem is the interest is never created only the principle-in this case 50,000. This means that by cold and calculated design there is never anything like enough units of theoretical exchange in circulation to pay back all the outstanding debt plus interest. People losing their homes, businesses, livelihoods and ability to feed themselves and their families is built into the system. During an economic boom created through an expansion of credit Peter paying Paul hides the extent of the difference between money in circulation and outstanding debt; but once there is an economic downturn when the issuing of credit is suppressed the truth becomes painfully obvious in lost homes and businesses and shattered lived. Governments are owned by the banks because they too have long been caught on purpose in the cycle of borrowing credit money from the banking system and committing the taxpayers to pay it back with high interest. But they can’t pay it back because the system is manipulated to prevent this and so debt is followed by even more debt. American government debt had now passed 16 trillion and is projected to be 20 trillion by 2016, but recent academic articles estimate the American government debt is over 200 trillion. Britain with its far smaller economy is in excess of a trillion pounds in debt more than 1.5 trillion. Neither is anything like a trade indication of the true debt, most of which is hidden behind smoke and mirrors. There is no way that this can ever be repaid and more does the banking system want it to be because debt means power and control over the debtor. People sell possessions when they have debt they can’t pay and so do governments which is why we have so many of worldwide state assets being sold at know down prices to corporations owned by the same Archon networks that created the debt and economic crash to dramatically increase the debt. Look at Greece along. Another stage of financial takeover related to this is what has become known as the IMF riot in which you make it so bad and untenable for the population that they riot in protest. Investigative journalist Greg Palast leaked World Bank documents in 2001 which detailed a four step process to asset strip the wealth, infrastructure, and resources of countries and one was to covertly instigate civil unrest to create chaos and cause investors to withdraw and trigger economic collapse and bankruptcy.This has been done in the developing world many time and they now wasn't t do the same in the West. This economic arson has its bright side-for foreigner, who can then pick off remaining assets at fire sale prices. These various expressions of the same manipulation have handed ownership of national energy and water suppled to foreign corporations over which the population has little control and if you go deep enough this transfer of wealth, resources, an power is being transferred by politicians of the Archon networks to corporations. Corporate asset stripping under Thatcher became known as privatization.

Governments also say that they have to cut back welfare and other spending and impose austerity programs to repay the debt to private banks and other lending fresh air money that doesn’t exist. Debt is power and control over the population. This is the motivation behind the crippling student debt that will dictate the lives and choices of young people for at least most of the rest of their lives. Wars are fantastic accumulators of unrepeatable debt. The networks that control the banks engineer wars through their puppet politicians and terror groups. The banks lend massive sums to fund the wars and the same networks get the same money back-and more-by selling the countries weapons made by their armament companies and through contacts for their private security companies and mercenaries. When the weapons have destroyed the infrastructure of a country the banks lend more money for reconstructions that largely goes to corporations owned by the same networks. Wars are a stunning transfer of wealth from the populations of countries at war to the Archons networks that engineer wars. The same happens with overseas aid when taxpayer money is given to other countries but with the agreement that it will be spent with certain Archon corporations. Why do government borrow money at interest from private banks when they could issue money interest free The answer is obvious. Interest free money would be of fundamental benefit to people and seriously mute the power of the banks. It doesn’t happen because those that control the banks control governments.

Allowing banks to create the money supply has many serious consequences including the fact that the very unit of exchange starts out like as an interest bearing debt. Money is just another word for debt in so many ways and it cannot pay back debt because it is debt and has been from the moment it was issued. British notes have printed on them “I promise to pay the bearer the sum on demand” of whatever the alleged value is. The note is not the repayment of debt, but an IOU promising to pay if you demand it. But even if someone does makes this demand there is no money which is not debt to pay them with. It was once said that the promise to pay on demand referred to being able to exchange the more for gold or coinage, but that no longer applied. It is not a promise to pay but with nothing to pay with. Money is a debt promising to pay a debt with a debt. Another foundation effect of having private banks create money through the issuing of credit is this gives them total control over whether an economy, local, national, or global, is expanding or contracting. This is the most effective way that the Archons have stolen the wealth and resources of the world. Economists call this the boom and bust cycle as if it was some natural occurrence, but it is all manipulated. During non existent credit money into circulation also creates inflation which reduced the buying power and money into circulation also creates inflation which reduces the buying power and worth of its illusory value and so 100 today had the purchasing power of 200 as recently in 1982 while the cost of necessities and basic has comparatively increased. No wonder people are finding it harder and harder to pay their bills and feed their families. This global organized crime of credit creation gives the Archon banking system total control over governments and the world economy through the following repeating sequence.

The banking system pours lots of money into the economy by making lots of loans at low interest rates. The variable rates means that you are borrowing blind as well as bring robbed blind because you have no idea what future repayments might turn out to be. With lots theoretical units of exchange in circulation the credit is available for people to buy and generate an expansion of economic activity which leads to more demand and production and more employment profits. Business and people tend to get into more debt in these boom periods with the confidence of full order books and apparent secure jobs. Business borrows more for new plant and machinery to meet demand and people will borrow more for homes, cars and holidays. Then at the optimum point from the Archon network’s point of view an excuse is found to stem the flow of credit into the economy and or increase interest rates. Both have the effect of taking money out of circulations, and demand for goods and services begins to fall. Businesses start to fail because they are not generating the income to pay their costs and bank debt. People lose their jobs and can no longer pay the debt on their homes, cars and other possessions. This is what they call a slump or recession. Now the banks take the real wealth in property, land, farms, and resources from those who cannot repay principle and interest on credit money that does not and will never exist.

“I care not what puppet is placed on the throne of England to rule the empire. The man who controls Britain’s money supply controls the British empire and I control the British money supply.” Nathan Rothschild

The BIS’s tradition of secrecy reaches back through the decades. During the 1960s, for example, the bank hosted the London Gold Pool. Eight countries pledged to manipulate the gold market to keep the price at around 35 dollars per ounce, in line with the provisions of the Bretton Woods Accord that governed the post-World War 2 international financial system. Although the London gold pool no longer exists, its successor is the BIS Market’s Committee, which meets every other month on the occasion of the governor’s meetings to discuss trends in the financial markets. Officials from twenty-one central banks attend. The committee releases occasional papers, but its agenda and discussions remain secret. An elite group of central bankers and private bankers who control the world. Grading and setting the currency value has been one way that the US has established their world dominance, by rating the US dollar higher than other currencies worldwide, and establishing being the the world’s reserve currency. Which has been controversial during current times, as countries such as the super powers of China and Russia who rejected control over their currencies from the BIS, established their independence and sovereignty, and ambitiously seek for their currencies to be the next world’s reserve currency. This has caused much controversy for the US, and Donald Trump and the US have expressed their fears of a Chinese takeover of the US and essentially the world. China and Russia have expressed their independence from rejecting European and American imperialism, and have constructed their own world nations alliances with the formation of the Asian Infrastructure Bank and the BRICS nations, in addition to forming alliances with NATO nations who sought help from bankruptcies. China has supplied US dollar backing with their gold, and Donald Trump has expressed his concerns over US dollar devaluation and accused China of currency manipulation.

Nowadays the countries represented at the Global Economy meeting together account for around 4/5 of global domestic product (GDP)-most of the produced wealth of the world-according to the BIS’s own statistics. Central bankers now “seem more powerful than politicians,” wrote the Economist. “Holding the destiny of the global economy in their hands.” How did this happen? The BIS, the world’s most secretive global financial institutions, can claim much of the credit. From its first day of existence, the BIS has dedicated itself to furthering the interests of central banks and building the new architecture of transnational finance. In doing so, it has spawned a new class of close knit global technocrats whose members glide between highly paid positions at the BIS, the IMF, and central and commercial banks.

The founder of the technocrats’ cabal was Per Jacobssen, the Swedish economist who served as the BIS’s economic advisor from 1931 to 1956. The bland titled belied his power and reach. Enormously influential, well connected, and highly regarded by his peers, Jacobssen wrote the first BIS annual reports, which were-and remain-essential reading throughout the world’s treasuries. Jacobssen was an early supporter of European federalism. He argued relentlessly against inflation, excessive government spending, and state intervention in the economy. Jacobssen left the BIS in 1956 to take over the IMF. His legacy still shaped our world. The consequences of his mix of economic liberalism, price obsession, and dismantling of national sovereignty play out nightly in the European news bulletins on our television screens.

The BIS’s defenders deny that the organization is secretive. The bank’s archives are open and researchers may consult most documents that are more than thirty years old. The BIS archivists are indeed cordial, helpful, and professional. The bank’s website includes all its annual reports, which are downloadable, as well as numerous policy papers produced by the bank’s highly regarded research department. The BIS published detailed accounts of the securities and derivatives markets, and international banking statistics. But these are largely compilations and analyses of information already in the public domain. The details of the bank’s own core activities, including much of its banking operations for its customers, central banks, and international organization, remain secret. The global economic meetings and other crucial financial gatherings that take place at Basel, such as the Market Committee, remain close to outsiders. Private individuals many not hold an account at BIS, unless they work for the bank. The bank’s opacity, lack of accountability, and ever-increasing influence raises profound questions-not just about monetary policy but transparency, accountability, and how power is exercised in our democracies. But with diplomatic immunity, the BIS answers to no body of government or nation. Although with the rejection of the old financial system, the BIS must now answer to new superpowers on the rise such as Russia and China. As they are writing the new rules of the financial system. As President Obama has stated, “If we (the US) don’t write the rules of the world, then China will.” Eastern nations rebelled and rejected against the Western financial system, claiming their creation of money was fraudulent, and their derivatives were considered fraudulent. With excessive printing of money out of thin air from the Federal Reserve Board, and fraudulently inputting numbers into bank computers by private bankers. Therefore, it was negotiated that money be backed by gold and assets of collateral.

As the BIS is the most important bank in the world and predates both the IMF and the World Bank. For decades it has stood at the center of a global network of money, power, and covert global influence. The BIS was founded in 1930. It was ostensibly set up as part of the Young Plan to administer German reparations payments for the first World War. The bank’s key architects were Montagu Norman, who was the governor of the Bank of England, and Hjalmr Schact, the president of the Reichsbank who described the BIS as “my bank. The BIS’s founding members were the central banks of Britain, France, Germany, Italy, Belgium, and consortium of Japanese banks. Shares were also offered to the Federal Reserve, but the US, suspicious of anything that might infringe on its national sovereignty, refused its allocation. Instead a consortium of commercial banks took up the shares: JP Morgan, the First National Bank of New York, and the First National Bank of Chicago.

The real purpose of the BIS was detailed in its statutes: to “promote the cooperation of central banks and to provide additional facilities for international financial operations.” It was the culmination of the central bankers decades old dream, to have their own bank-powerful, independent,  and free from interfering politicians and nosy reporters. Most felicitous of all, the BIS was self-financing and would be in perpetuity. Its clients were its founders and shareholders-the central banks. During the 1930s, the BIS was the central meeting place for a cabal of central bankers, dominated by Norman and Schacht. This group helped rebuild Germany. The New York Times described Schacht, widely acknowledged as the genius behind the resurgent German economy, as “The Iron-Willed Pilot of Nazi Finance.” During the war, the BIS became a de-factor arms f the Reichsbank, accepting looted Nazi gold and carrying out foreign exchange deals for Nazi Germany.

The bank’s alliance with Berlin was known in Washington DC, and London. But the need for the BIS to keep functioning, to keep the new channels of transnational finance open, was about the only thing all sides agreed on. Basel was the perfect location, as it is perched on the northern edge of Switzerland and sits almost on the French and German borders. A few miles away, Nazi and Allied soldiers were fighting and dying. None of that mattered at the BIS. Board meetings were suspended, but relations between the BIS staff of the belligerent nations remained cordial, professional, and productive. Nationalities were irrelevant. The overriding loyalty was to international finance. The president, Thomas Mckittrick, was an American. Roger Auboin, the general manager was French. Paul Hechler, the assistant general manager, was a member of the Nazi party and signed his correspondence “Heil hitler.” Rafaela Pilot, the secretary general, was Italian. Per Jacobssen, the bank’s influential economic advisor, was Swedish. His and Pilotti’s deputies were British.

After 1945, five BIS directors, including Hjalmar Schacht, were charged with war crimes. Germany lost the war but wont the economic peace, in large part thanks to the BIS. The international stage, contacts, banking network, and legitimacy the BIS provided, first tot he Reichsbank and then to its successor banks, has helped ensure the continuity of immensely powerful financial and economic interests form the Nazi era to the present day.

For the first 47 years of its existence, from 1930 to 1977, the BIS was based in a former hotel, near the Basel central railway station. The bank’s entrance as tucked away by a chocolate shop, and only a small notice confirmed that the narrow doorway opened into the BIS. The bank’s managers believed that those who needed to know where the BIS was would find it, and the rest of the world certainly did not need to know.

Nowadays the BIS’s main mission, in its own words, is threefold: “to serve central banks in their pursuit of monetary and financial stability, to foster international cooperation in these areas, and to act as a bank for central banks. The BIS also hosts much of the practical and technical infrastructure that the global network of central banks and their commercial counterparts need to function smoothly. It has two linked trading rooms: at the Basel headquarters and Hong Kong regional office. The BIS buys and sells gold and foreign exchange for its clients. It provides asset management and arranges short term credit to central banks when needed.

The BIS is a unique institution: an international organization, an extremely profitable bank and a research institute founded, and protected, by international treaties. The main tasks of a central bank, the BIS argues, are to control the flow of credit and the volume of currency in circulation, which will ensure a stable business climate, and to keep exchange rates within manageable bands to ensure the value of a currency and so smooth international trade and capital movements. This is crucial, especially in a globalized economy, where markets reacts in microseconds and perceptions of economic stability and value are almost as important as reality itself.

The BIS also helped to supervise commercial banks, although it has no legal powers over them. The Basel Committee on Banking Supervision, based at the BIS, regulates commercials banks’ capital and liquidity requirements. It requires banks to have a minimum capital of eight percent of risk-weighted assets when lending, meaning that if a bank has risk weighted assets of $100 million, it must maintain at least 8 million capital. The committee has no powers of enforcement, but it does have enormous moral authority. “This regulation is so powerful that the eight percent principle has been set into national laws.”

The reality is that we have moved beyond recession into a deep structural crisis, one filed by the bank’s greed and rapacity, which threatens all of our financial security. Just as in the 1930s, parts of Europe face economic collapse. The Bundesbank and the European Central Bank, two of the most powerful members of the BIS, have driven the mania for austerity that has already forced one European country, Greece (next in line to default Spain and Italy), to the edge, aided by the venality and corruption of the country’s ruling class. Others may follow suit. Currently the European Union is breaking up due to bankruptcy of several European countries, with the UK exit from the European Union, and with other countries such as Italy and France voting whether to exit or not. As taxpayers rebel and reject further bail outs from once again bankrupt banks. The old order is creaking, its political and financial institutions corroding from within. From Oslo to Athens, the far right is resurgent, fed in part by soaring poverty and unemployment. Anger and cynicism are corroding citizens’ faith in democracy and the rule of law. Once again, the value of property and assets is vaporizing before their owner’s eyes. The European currency is threatened with breakdown, while those with money seek safe haven in Swiss francs or gold. The young, the talented, and the mobile are agin fleeting their home countries for new lives abroad. The powerful forces of international capital that brought the BIS into being, and which granted the bank its power and influence, are again triumphant.

The BIS sits at the apex of an international financial system that is falling apart at the seams, but its officials argue that it does not have the power to act as an international financial regulator. Yet the BIS cannot escape its responsibility for the Euro-zone crisis. From the first agreements in the late 1940s on multilateral payments to the establishment of the European Central Bank in 1998, technical expertise and the financial mechanisms for currency harmonization. During the 1950s, it managed the European Payment Union, which internationalized the continent’s payment system. The BIS hosted the Governors’ Committee of European Economic Community central bankers, set up in 1964, which coordinated trans-European monetary policy. During the 1970s, the BIS ran the “snake,” the mechanism by which European currencies were held in exchange rate bands. During the 1980s the BIS hosted the Delors Committee, whose report in 1988 laid out the path to European Monetary Union and the adoption of a single currency. This BIS midwifed the European Monetary Institute (EMI), the precursor of the European Central Bank. The EMI’s president was Alexandre Lamfalussy, one of the world’s most influential economists, known as the “Father of the Europe.” Before joining the EMI in 1994, Lamfulussy had worked at the BIS for seventeen years, first as economic advisor, then as the bank’s general manager.

For a staid secretive organization, the BIS has proved surprisingly nimble. It survived the first global depression, the end of reparation payments and the gold standard (two of its main reasons for existence), the rise of Nazism, the Second World War, the Bretton Woods Accord, the Cold War, the financial crises of the 1980s and 1990s, the birth of the IMF and World Bank, and the end of Communism. As Malcolm Knight, manager from 2003-2008 noted, “It is encouraging to see that by remaining small, flexible, and free from political interference-the bank has, throughout history, succeeded remarkably well in adapting itself to evolving circumstances.

The bank has made itself a central pillar of the global financial system. As well as the Global Economy Meetings, the BIS hosts four of the most important international committees dealing with global banking: the Basel Committee on Banking Supervision, the Committee on the Global Financial System, the Committee on Payment and Settlement Systems, and the Irving Fisher Committee, which deals with central banking statistics. The bank also hosts three independent organizations: two groups dealing with insurance and the Financial Stability Board. The FSB, which coordinates national financial authorities and regulatory policies, is already being spoken of the fourth pillar of the global financial system, after the BIS, the IMF, and commercial banks.

The BIS is now the world’s 30th largest holder of gold reserves with 119 metric tons-more than Qatar, Brazil, or Canada. Membership of the BIS remains a privilige rather than a right. The board of directors is responsible for admitting central banks judged to “make a substantial contribution to international monetary cooperation and to the Bank’s activities.” China, India, Russia, and Saudi Arabia joined only in 1996. The bank has opened offices in Mexico City and Hong Kong but remains very Eurocentric, Estonia, Latvia, Lithuania, Macedonia, Slovenia, and Slovakia (population 16.2 million) have been admitted, while Pakistani (population 169 million) has not. Nor has Kazakhstan, which is a powerhouse of Central Asia. In Africa only Algeria and South Africa are members-Nigeria, which has the continent’s second largest economy, has not been admitted. (The BIS defenders say that it demands high governance standards from new members and when the national banks of countries such as Nigeria and Pakistan reach those standards, they will be considered for membership.

Considering the BIS’s pivotal role in the transnational economy, its low profiles remarkable. Back in 1930 a New York Times reported noted that the culture of secrecy at the BIS was so strong that he was not permitted to look inside the boardroom, even after the directors had left. Little has changed. Journalists are not allowed inside headquarters while the Global Economy Meeting is underway. BIS official speak rarely on the record, and reluctantly, to the members of the press. The strategy seems to work. The Occupy Wall Street movement, the anti-globalizers, the social network protestors have ignored the BIS. Centralbahnplatz 2, Basel is quiet and tranquil. There are no demonstrators gathered outside the BIS’s headquarters, no protestors camped out in the nearby park, no lively reception committees for the world’s central bankers.

As the world’s economy lurches from crisis to crisis, financial institutions are scrutinized as never before. Legions of reporters, bloggers, and investigative journalists scour the bank’s every move. Yet somehow apart from brief mentions on the financial pages, the BIS has largely managed to avoid critical scrutiny. Until now.

THE BANKERS KNOW BEST:

During Norman’s term as governor, from 1920-1944, he was one of the most influential men in the world, an apparently permanent bastion of the global financial system. The NY Times described him as overseeing Britain’s “invisible empire of wealth.” Gold standards may come and go, but Montagu remains. Such as Norman’s power that a single speech could move markets. When in October 1932, Norman gloomily proclaimed at a bankers’ dinner in London that the world’s economic disorder was beyond the control of any man, government, or country, stocks, bonds, and the dollar all slid sharply and quickly in NY.

The governor was a scion of old and respected banking dynasty, but his mental state was an open secret among financial insiders. Norman was a mercurial figure, a manic depressive, and a workaholic, notorious among financial insiders for his mood swings. Shy and hypersensitive, Norman was introverted to the point of neurosis. First World War, Norman had consulted Carl Jung, the Swiss founder of analytical psychology, to discuss a course treatment, with no success, Jung had implied that Norman was untreatable, which did not help matters.

The world’s most powerful banker abhorred publicity, being recognizes or socializing, was prone to fainting fits. He once threw an ink pot at the head of an underling who failed to meet his exacting standards. He was a very unlikely banker. He was more like a 17th century nobleman or painter. H was always very neurotic and had very bad nervous breakdowns. He was very shy and a loner. He had no care for conventions. He came down to dinner without socks and traveled to work on the underground, which was very unusual in those days.

The balmy months in 1929 were the last hurrah of the roaring twenties. the American bull market was still growing. Share prices kept rising. The value of stock in Radio Corporation of America rose b almost 50 percent in a single month. In August, a brokerage firm announced a new service for those heading to Europe on ocean liners: on board trading during the weeklong crossing.

Norman wanted to talk about a new bank, to be called the Bank for International Settlements. The BIS was being set up in connection with the Young Plan, the latest and hopefully final program for implementing German reparations payments for the first world war. But Norman had much more ambitious ideas. THe BIS would be the world’s first international financial institution. It would be a meeting place for central bankers. Away from the demands of politicians and the trying eyes of nosy journalists, the bankers would bring some much needed order and coordination to the world financial system. But  for the BIS to succeed and properly fulfill its potential, Norman explained, he needed Layton’s help. A subcommittee would soon meet in Baden, in Germany to draw up the bank’s statutes. The Economist editor, Norman said, was just the man to draft the BIS’s constitution, one that must, above all, guarantee the bank’s independence from politicians.

To Understand How and Why the BIS yields such influence today, it is necessary to step back to the early 1920s and the arguments about German reparations payments for the first world war. German war guilt was enshrined in the 1919 Treaty of Versailles. But no amount of money could bring back the dead, who numbers were almost incomprehensible. In July 1916, on the first Battle of the Somme, Britain lost 60,000 men- the equivalent of a medium sized town, mown down in a few hours. France lost a total of 1.4 million soldiers during the four years of fighting, and Germany lost 2 million. The United States, which did not enter the conflict until 1917 lost 117,000 men.

Reaching agreement on German reparations was a slow, complicated, and politically fraught task. The first world war had internationalized conflict to an unprecedented degree. Its financial fallout was similarly globalized. The war had exacted a terrible cost on Europe’s economies, as well as it populations. The fledgling international financial system was ill-designed to deal with the complex demands that were now being placed on it. Where would Germany find the money to pay? What would be the mechanisms by which it would do so? Who would oversee and regulate the reparations payments? These arcane discussions shaped the role, structure, and privileged legal status of the BIS.

Norman and the rebuilders, who included most of Wall Street, believed otherwise. Europe could be reconstructed, but its future lay in trade and financial cooperation. The aim was not to reduce Germany to penury, but to help it fix its economy and start trading again as soon as possible. In April 1921 the Reparations Commission announced that Germany would pay a total of 132 billion gold marks (31.5 billion), payable at 2 billion marks a year. The commission might as well have demanded ten times as much. Germany was still reeling from its defeat, society was collapsing, unemployment soared, and there were severe shortages of food. Right wing extremists-the Freikorps-battled Marxist militants in the street. Workers’ council took control of Hamburg, Bremen, Leipzig, and central Berlin. This was not the salon Marxism of Greenwich Village or San Francisco, but the real thing-raw and bloody. Hostages were taken, factories were seized, and prisoner were lined up against walls and shot.

Karl max’s predictions about the inevitable destruction of capitalism seemed to be becoming truer by the hour-especially in his homeland. The bankers’ fears that Germany was about to follow Russia into Communism seemed entirely justified. Hyperinflation set in as the government printed money to keep the economy functioning. Shoppers used wheelbarrows to move the bundles of notes needed to buy basic staples. The chaos had stopped. On November 13, 1923 give days after Adolf Hitler’s failed Beer Hall Putsch in Munich, a at all, imperious, German started work as Reich currency commissioner. Hjalmar Schacht demanded and got, near dictatorial powers. Working out of a former janitor’s closet, he set to work on stabilizing the value of the value of Germany’s new currency, the rentenmark. Currencies were usually backed by gold, but the rentenmark was backed by the value of Germany’s land and holdings since here was no gold available to back the new currency. This was a somewhat hazy idea-how could the bearer of a rentenmark redeem his money? Would he be given a small price of a field?

This concern did not matter. As long as Schacht was in office, nobody would want to redeem a rentenmark. He brilliantly understood the key point of the psychology of money, which is as valid today as it was in the hyperinflation of the 1920s: the appearance of financial stability creates monetary value. If people believed that someone was in charge, that the haps would end, and that the rentenmark had value, then it would be valued. The first notes were printed on November 15 1923. One rentenmark could be exchanged for one trillion old marks (1,000,000,000,000). One US dollar cost 4.2 rentenmarks, a return to the pre-WW1 exchange rate. The aim, Schacht said, was to make German money scarce and valuable. Other than the logistics of printing and distributing the bank notes and convincing Schacht’s foreign colleagues that order had been returned to the German economy, there was not that much more to it. When German reporters asked Clara Steffeck, Schacht’s secretary, what he did all day, she replied,

What did he do? He sat in his dark room, which smelled of old cleaning rags, and he smoked. Did he read letter? No. And he dictated no letters. But he phoned a lot all over the world, about domestic and foreign currency: Then he smoked some more. We didn’t eat much. He usually left late and took public transportation to go home. That was all.

Not quite, all. Taxes were raised, and four hundred thousand German public employees were sacked. But the rentenmark successfully stopped the German inflation so well that on December 22, 1923, Schacht was promoted to be president of the Reichsbank, while retaining his position as currency commmissioner. He could now attend cabinet meetings. “Within a few weeks notes John Weitz Schacht’s biographer, “he has virtually become Germany’s economic dictator.”

The Schachts settled in NY, but they did not prosper, and Wilhelm brought his family back to Europe. In 1876 they moved ti Denmark. At first they wanted to name their second son in honor of Horace Greeley, an influential NY journalist and politician who campaigned against the slave trade. The baroness was proud of her radical views-her father had worked to abolish serfdom in Denmark.

The family was constantly on the move. They lived for a while in Hamburg and then relocated to Berlin. Hjalmar proved to be a diligent student. He enrolled at Kiel University and studied political economy. He worked as a journalist, tried public relations, and then joined the Dresden Bank. His diligence, attention to detail, and austere manner helped ensure he was soon noticed. Schacht traveled to the US with other bank officials. They met President Franklin Roosevelt and were invited to lunch in the partners’ dining room at JP Morgan. Schacht’s understanding of the world outside Germany, and his fluent English, proved invaluable. He was promoted to be deputy director of Dresden Bank and joined the board of the Reichsbank.

So in 1923, with the rentenmark established, the next step was to build a gold reserve to five the new currency real backing. Two Schacht’s surprise and delight, he was met on the platform by Montagu Norman himself. I do hope we shall become friends, said Norman. Schacht told Norman that he wanted the Bank of Englsnf to lend 25 million to a new subsidiary of the Reichsbank, the Gold Discount Bank. The new bank would instantly alter global perceptions of the country’s financial prospects. The imprimatur of the governors of the Bank of England would open doors throughout Wall Street and the City of London. Tenacious as ever Schacht got his money.

Schacht had sweet talked Norman, but the reparations question remained unresolved. American was tired of squabbling Europeans who could not get their houses in order and also recognized that there could be no lasting prosperity while Europe lurched from one financial crisis to another. A new reparations committee was set up under the chairmanship of Charles Dawes, and irascible American banker. The Dawes Committee met in Paris in January 1924, Owen D. Young the president and chairman of General Extric and the RCA, accompanied Dawes. Young was a consummate diplomat and needed to be. His job was to persuade France to ease the terms of reparations schedule, which was destroying the German economy, and thus preventing a European recovery, and then to persuade Germany to accept much more stringent external control of its finances.

The Dawes Committee issued its recommendations on April 9. Germany’s payments would be reduced for a while, and would increase later, after the economy had stabilized. That stabilization would be based in part on a loan of 800 million gold marks, to be floated on the international market. The German government would hold the funds in marks, which would then be paid into escort account at Reichsbank. This account would be controlled by a foreign official known as the agent-general, who could decide how the monies would be used and when they would be released-so as not to flood the markets and affect the value of the Reichsmark. The Reichsbank was placed under the control of a fourteen man board of seven foreigners and seven Germans.

American companies rushed to invest in Germany. The Great War had triggered an economic boom in the US. Unlike Europe, mainland American had been spared war damage. Its factories and farms and its mines and industrial plants were all untouched and operating at full capacity. The Dawes Plan loan was floated in NY and London in October and was quickly oversubscribed. American banks soon clamored to finance the companies now investing in the German economy.

Between 1924 and 1928, Germany borrowed 600 million a year, half of which was provided by American banks. Much of it swiftly returned from whence it had come. Like modern bailouts, the money swirled back and forth, raising and lowering balance sheets, boosting confidence and keeping the markets happy. As John Maynard Keynes wrote, the US lends money to Germany, Germany transfers its equivalent to the alIies, the allies pay it back to the US government. Nothing real passes-no one is a penny the worse. The engravers’ dies, the printers’ forms are busier. But no one eats less, no one works more. Some, like Schacht believed that no one was a penny the better-he was right. The vast sums merely a financial adhesive strip. An in October 1929, when Wall Street crashed, American investors frantically pulled out their German investments in droves.

Once again, Germany faced economic disaster. But is Weimar Germany defaulted, the global economy might crash. It was clear that the reparations issue had to be settled. Even Seymour Parker Gilbert, the agent-general in charge of implementing the Dawes Plan, argued that the country needed to take control of its financial destiny. Gilbert was not popular. In 1928 German nationalists staged his mock coronation. Ten thousand people watched his effigy crowned “the new German Kaiser who rules with a top hat for a crown and a coupon clipper for sceptor.”

The answer to the never ending German reparations questions was, of course, another conference. The gap between France and Germany over Germany’s reparations bill was as cavernous as ever. Schacht made his opening offer: 250 million a year for the next thirty seven years. Emil Moreau, the equally stubborn governor of the Bank of France, demanded 600 million a year for 62 years. Perhaps even that might not be enough, he informed Young. France might settle for nothing less than 1 billion.

Moreau refused to budge, and so did Schacht. Any initial optimism soon soured. The Germance were unnerved by the French secret police, who were tapping the German telephones. Schacht and his colleagues communicated with Berlin in coded telegrams. He traveled back every fortnight to consult with the government.

Whatever sum was finally agreed upon, there was at least some consensus that a new bank would be needed to manage Germany’s reparations. Schacht and Norman argued that the new bank would keep the issue free of politics and manage it on a purely financial basis. This was unlikely, as there were no more politically charged issues than reparations, but it showed how the two governors both saw the benefit of a bank free of political constraints. Germany was paying its reparations by borrowing from other countries. Schacht explained to the conference chairman. Such a system was no longer feasible. If the allies really wanted Germany to be able to pay its obligations, the country needed to become productive again. Instead of lending to Germany, the allies should lend to underdeveloped countries so they could buy their industrial equipment from Germany.

Young asked how such a plan could be put into practice. Schacht had a ready answer: by setting up a bank. A bank of this kind will demand financial cooperation between vanquished and victors that will lead to community of interests, which in turn will give rise to mutual confidence and understanding and thus promote and ensure peace. The allies then presented their proposal: Germany would pay 525 million a year for 37 years and 400 million a year for the following 21 years. Schacht would have none of it. He proclaimed that to meet these terms Germany must take possession agin of all its former colonies, most of which were in Africa. He also demanded the return of the Danzig corridor, which linked Poland to the Baltic Sea, which would tear up the postwar peace treaty. When Moreau heard this he slammed the table with his fist and hurled his ink blotter across the room. A cartoon in a French newspaper summed up the local mood. It showed Moreau asking Schacht, All right, excellency, how much do we owe you?

All sides finally reached agreement June 7. Germany would pay almost 29 billion over 85 years. Control of German economic policy was returned to Berlin. A new bank would administer the payments. Schacht wrote of its birth: in the meantime my idea of a Bank for International Settlements had met with such enthusiastic response from all those taking part in the Young Conference that soon there was not one among them who would not have liked to claim the suggestions as his own. As the delegated signed the final version, the curtains in the meeting hall caught fire.

The Young Plan was accepted in principle at the First Hague conference, and seven committees were set up to work out the technical details. At Schacht’s suggestion the seventh the Organization Committee gathered in Baden-Baden. This was the most important committee, and it was responsible for drafting the statutes of the new bank and its relations with the host country, which would regulate its legal status. The delegates argued about governance, the role of the directors and managers, and even the official language of the new bank’s statutes. It was eventually agreed that both the French and English texts would be authentic. The bank would hold central banks’ fold and convertible currency deposits. These deposits could be used to settles international payments without having to either physically move the gold between banks or trade the currency through foreign exchange markets. The BIS would be an international clearinghouse for central banks, the world’s first. And with the broad outline settled, the next question was where the new bank should be located. Montagu Norman and the British government pushed London, France objected, on principle, and argued that the new bank should be located in a small country. There was some talk of Amsterdam, and finally the delegates settled on Basel, Switzerland, which was conveniently located several international railway lines and on the borders of France and Germany.

The constitutions was to work out some form of words that would place the bank beyond the reach of governments. Layton struggled hopelessly, and then told Norman he had failed. Why do you insist it can’t be done? Norman demanded, annoyed. Because its the right of every democratic government to reserve its freedom of action, Layton replied- an argument that would resonate through the decades. Layton admitted defeat, the consitution was eventually drafted buy one of the many committees set up to establish the BIS. But Norman was victorious: the bank’s statutes, still extant today, enshrined its absolute independence from interfering politicians and governments. As for Schacht, chastened and unhappy about the reparations demands of the Young Plan, he traveled to the spa of Marienbad, Czechoslovakia, to spend time with his wife. Narrow minded, rigid, and intensely Prussian, Luise his wife met him at the train station. She shouted you should never have signed. But Schacht and Montagu Norman had their bank.

In September 1930 a few months after the BIS opened for business, an American lawyer named Allen Dulles sat down in his office in Paris , to write a letter to Leon Fraser. Fraser, a fellow American was also a lawyer. Fraser had served as general counsel for the execution of the Dawes Plan and had taken part in the negotiations at Baden-Baden on the structure of the BIS. Fraser was now a board member of the BIS and the bank’s alternating president. Dulles was confident that his request, which was simple enough, would be granted. After all, he was a scion of one of the powerful families in the US. His uncle Robert Lansing had served as secretary of state, as had his grandfather. Dulles was in the foreign service until the US entered the war in 1917, when he moved to Bern Switzerland to work as a junior intelligence officer at the US legation. Neutral Switzerland how to squabbling emigres, businessmen, and revolutionaries, provided a bountiful harvest of information. It is almost impossible to stop for any length of time in Switzerland, Dulles wrote, without coming into contact with questionable characters. Bern is just full of agents and representatives of all nationalities. Dulles flushed the world of shadows. Even as a precocious school boy, he had shown an insatiable appetite for intrigue and geopolitics. He wrote his first book at the age of seven. The Boer War was short treatise on how the Boers, the Dutch settlers, had first claim on southern Africa, as they had arrived there before their British overlords.

But the future director of the CIA did not always know how to assess a potential source. He later loved to recount the story of how one day in April 1917 the telephone rang at the US Legation in Bern. Dulles took the call. A Russian emigre leader urgently wanted to meet with an American diplomat. Dulles refused, as he wanted to play tennis instead. The next day the man who had telephoned left Switzerland on a sealed train for the Finland Station-a railways station in St. Petersburg, Russia. The city would later be renamed Leningrad in his honor. From Bern, Dulles was dispatched to Paris, as part of the US team at the 1919 Paris Peace Conference. Officially he was included as a member of the commission growing up the boundary of the new state of Czechoslovakia. In fact, Dulles was running the American diplomatic intelligence operation for central Europe and courting and monitoring its emigres, exiles, and revolutionaries.

Dulles wrote biographer Peter Grose, was plunged into a realm where sovereign frontiers were transparent and the trappings of democracies seldom allowed to penetrate. Like beguiled readers of Eric Ambler or Graham Greene, Allen discovered that only a thin line divided respectable high finance from a shadowy underworld. While Montagu Norman and Hjalmar Schacht had exploited the chaos around the German reparations question to finesse the world’s leading powers into creating the BIS, the Dulles brother used Europe’s disorder to broker deals and monetary instruments to refinance Germany that were so complex that few outside their offices at Sullivan and Cromwell could understand them.

Much of this web was connected to the BIS, via the Dulles brothers and their friends on Wall Street and in London and Germany. NY banks had led the way during the 1920s in raising money for Germany, and the City of London had also provided significant funds. Foremost among the British banks was J Henry Schroder the London operation of the well established German banking firm of the same name that was based in Hamburg. Schroder in London set up a trust to invest in numerous German firms, including IG Farben, Siemens, and Deutsche Bank. Frank Tiarks, who was a partner in the London branch of Schroder set up a subsidiary in NY, called Schrobanco. It opened for business in Octobers 1923 and was an instant success. The president of Schrobanco was an American banker named Prentiss Gray, who was a close friend of John Foster Dulles’s whom Gray had met at the Paris Peace conference. Schrode’s historic German connections and contacts made that country a natural focus of Schrobanco’s. The company quickly became one of the leading agents for doing business in Germany, and later for processing loans under the Dawes and Young reparations plans. Among Schrobanco’s shareholders were a number of German, Swiss, and Austrian banks, which included naturally the Hamburg branch of J Henry Schroder, as well as a bank called JH Stein of Cologne. One of JH Stein’s partners, who was a scion of the Schroder dynasty, would later join the board of the BIS and use JH Stein to funnel money from German industrialists to Henrich Himmler’s personal slush fund.

Frank Tiarks was a director of the Bank of England and a close colleague of Montagu Norman. Tiarks had his eye on an American financier names Gates McGarrah, whose Tiaras wanted to recruit to the board of Schrobanco. McGarrah whose Tiarks described as one of the most important American bankers, was a director of the Federal Reserve Bank of NY. He also had excellent connections in Germany-he had represented the US at the Reichsbank when it was held under international control. McGarrash stayed on the Schrobanco board until 1927 when he returned to the Federal Reserve Bank of NY as chairman. He stayed there until 1930-when he was appointed the first president of the BIS. As for Schrobanco, its complicated German investments were in good hands: the bank’s lawyer Allen Dulles. The links were so close that in 1929 Schrobanco moved into spacious offices at 48 Wall Street-the same building that housed Sullivan and Cromwell. Allen Dulled had a simple request for Leon Fraser that autumn of 1930. And Gates McGarrah the BIS president, was also getting letters about Eleanor Dulles, Paul Warburg, the eminent banker, had written to McGarrah from the headquarters of MM Warburg at 40 Wall Street in NY, Warburg explained that Eleanor was a sister of my good friend John Foster Dulles, whose name is well known to you as a writer on international questions and whom you undoubtably know personally.

Jackson Reynolds, president of the First National Bank of NY who had chaired the BIS Organization Committee in Baden-Badeb, wrote to McGarrah from 2 Wall Street. He asked McGarrah to assist Miss Dulles especially as she was the sister of Reynolds’ friend, John Foster Dulles.

There were few, if any people in the US then with a more powerful and influential set of friends than John Foster Dulles, who served as legal counsel to the US delegation at the Paris Peace Conference, where he had specialized in German war reparations. His time in Paris gave him privileged insight into the workings of international finance and diplomacy and a network of coveted contacts. Dulles’s client list during the 1920s read like a who’s who of American finance: JP Morgan, Loeb & Co; Harris, Forbes & Co, Brown Brothers; WA Harriman, and Goldman Sachs. Dulles arranged tens of millions of dollars’ worth of loans to clients, including to the cities Munich, Frankfurt, Nuremberg, Berlin, and Hanover, and to the Union of german Mortgage Banks, the Berlin City Electric Company, Hamburg Street Railways, and the State of Prussia, Dulles also worked on the Dawes Plan German Loan in 1924 and the German government International Loan of 1930 that had been instigated by the Young Committee.

The mist successful of them was a German Khazar or Ashkenazi Jewish family Bauer who changed their name to Rothschild in honor of the Saturn symbol on their home inFrankfurt. The Rothschild and their circle of German Jewish banking families such as Schiff, Kuhn, Loeb, Speyer, Warburg, Goldman, lizard and Lehman moved in on the US to create the banking system that today controls most of humanity. They joined forced with the Rockefellers, another German Jewish family, and bail American’s banking, industrial and corporate power structure that now manifests as Morgan Stanley, JP Morgan, Goldman Sachs and the rest of Big Banking, Big biotech, Big Pharma, Big Oil, Big Food, Big Media and Big Government. Their vice like grip on the US government and banking system came when they established the privately owned (Rothschild owned) Federal Reserve which is hilariously called the American central bank. It is not. The Fed is a cartel of private banks, alI controlled by the same networks (the network of global corporate control), and it runs the US entirely for banking interests. Jacob Schiff and Paul Warburg, German Zionists and Rothschild associates, were instrumental in manipulating the Federal Reserve into existence thanks to a bill passed on Christmas Eve 1913 when most members of Congress were not there. It was steered through by CongressmanNelson Aldrich who had married into the Rockefeller clan. The Schiff family lived with the Rothschild at their Saturn symbol home in Frankfurt and Warburg’s brother Felix, even though Jewish, was a banker to Hitler. Schiff and Warburg ran the Rothschild NY financial house Kuhn, Loeb and Company which funded the Russian Revolution led by Vladimir Lenin and Leon Trotsky. The Federal Reserve has since lent the US government worthless printed money and credit that doesn’t exist-plus interest-and continues to be owned by Rothschilds and associated Rothschild Zionist banking families. The purchasing power of the dollar has plummeted since the creation of the Fed while debt and inflation have absolutely soared. The Fed hijacked America with the intention of destroying America and it is almost there. The bloodlines love central banks because they are what they say-central. They are an accumulation and concentration of power over banking and finance in every country and if can connect them in terms of policy you can dictate global finance on that level alone even without your additional control of stock markets. Central banks are connected and coordinated through a range of Rothschild organizations such as the BIS in Basel, with branches in Hong Kong, and Mexico. This officially fosters international monetary and financial cooperation and serves as a bank for central banks, but it is not accountable to any government. It might we worth reading that last sentence again to let it sink in. The BIS is not subject to any taxation or national laws and achieved infamy with the few who know by laundering money for the Nazi Regime during WW2. The heads of major central banks meet every two months in Basel to plot the world economy. The Wall Street Journal said of the BIS in 2012: While many national governments, including the US, fave failed to agree on fiscal policy-how best to balance tax revenues with spending during slow growth-the central bankers have forged their own path, independent of voters and politicians, bound by frequent conversations and relationships stretching back to University days. The connections are much deeper than University days and extend deep into the Rothschild networks which also operate within academic institutions such as MIT and London School of Economics.

Wall Street in the 1920s was possessed by a near mania to lend to Germany. In 1923 American banks and finance houses sent abroad 458 million in long term capital. By 1928 that sum had risen to 1.6 billion. The German credit cycle reached ludicrous extremes. A small village in Bavaria, which needed around 125,000 was persuaded to borrow 3 million. But the real significance of this flow of capital was not just financial. The bonds between American bankers, businessmen, and industrialists, and their German counterparts, would prove far more durable than the doomed Weimar Republic, and even the Third Reich. With the BIS as the central point of contact, these links would endure the Third Reich. With the BIS as the central point of contact, these links would endure the Second World War and reshape Europe after 1945.

Allen Dulles returned to Bern during the second world war as a far more experienced, powerful, and influential spymaster, harvesting much information through his assets at the BIS. John Foster Dulles went on to become Secretary of State for the Eisenhower administration during the 1950s at the height of the cold war. The Dulles brothers would help ensure that Nazi bankers, businessmen, and industrialists-many of whom should have been tried for war crimes-were seamlessly integrated back into powerful positions in the new Federal Republic of Germany.

For Hjamlamr Schacht and Montag Norman, January 20, 1930 was a date to savor: they had created a bank beyond the reach of either national or international law. On that date the governments of the UK, France Germany, Belgium, Italy, Japan, and Switzerland signed an extraordinary document. The Hague Convention guaranteed that the BIS would be the world’s most privileged and legally protected bank. It statutes which remain in force to this day, essentially make the BIS untouchable. Article 10 of the BIS Constituent Charter noted,

The bank its property and assets and all deposits and other finds entrusted to it shall be immune in time of tract and in time of war from any measure such as expropriation, requisition, seizure, confiscation, prohibition or restriction of gold or currency export or import, and any other similar measures.

The BIS enjoys the legal privileges of an international organization, but arguably it is not one as usually understood by the term. It is a highly profitable bank that is accountable to and controlled by its members: central banks. Under the cover of the Young Plan, as well as the need for an impartial financial institution bankers had by brilliant sleight of hand created by a bank with unprecedented powers and privileges. The official historian of the BIS states,

“It was no accident that, although the settlements of the reparations problems had been the immediate cause for setting up the BIS, the bank’s statutes defined its actual purpose much more broadly. To promote the co-operation of central banks and to provide additional facilities for international financial operations; and to act as trustee or agent in regards to international financial settlements entrust to it under agreements with the parties concerned.”

In February 1930, the governors of the central banks of Britain, France, Italy, Germany, and Belgium gathered with representatives from Japan and three American banks to sign the BIS’s instrument of foundation. As the Federal Reserve Bank of NY was not permitted to own shares, for political reasons, a consortium was formed-JP Morgan, the First National Bank of NY and the First National Bank of Chicago-to represent the US. The BIS formally came into existence on February 27, 1930. The bank’s initial share capital was set at 500 million Swiss Francs, which was divided into 200,000 shares of 2,500 gold francs. The governors of the founding central banks were ex officio member son the board of directors. Each could appoint a second director of the same nationality. The second director did not have to be a central bankers. He could be drawn from finance, industry, or commerce-a provision that would later prove crucial in ensuring Nazi influence over the BIS.

THE BIS WAS INCORPORATED UNDER SWISS LAW. ITS AUTHORIZED ACTIVITIES INCLUDED THE FOLLOWING:

-BUYING, SELLING AND HOLDING GOLD FOR ITW OWN ACCOUNT OR FOR CENTRAL BANKS -BUYING AND SELLING SECURITIES OTHER THAN SHARES -ACCEPTING DEPOSITS FROM CENTRAL BANKS -OPENING AND MAINTAINING DEPOSIT ACCOUNTS WITH CENTRAL BANKS -ACTING AS AN AGENT OR CORRESPONDENT FOR CENTRAL BANKS -ENTERING AGREEMENTS TO ACT AS A TRUSTEE OR AGENT IN CONNECTION WITH INTERNATIONAL SETTLEMENTS

There were some restrictions that were intended to prevent the BIS from becoming a competitor of commercial banks. The bank could not issue banknotes, open accounts for individuals or commercial organizations, own property other than its headquarters or offices, or have a controlling interest in a business. (The immunities granted under international treaty for reparation settlements did not apply to all if its banking operations to ensure that it maintained the confidence of the international markets).

Even better, although the BIS was protected by international treaty, unlike the League of Nations, it was not dependent on budgetary contributions from its members. It enjoyed guaranteed revenue stream from the reparations payments that it would manage under the Young Plan, as well as from the highly profitable services it would carry out for its clients, the central banks. In the final analysis, the BIS although founded by an international treaty sanctioned by national governments, was very much tailed to the views and requirements of the national banks. The key provisions of the bank’s statutes were given protected status and so could only be changed with the consent of all signatories to the Hague Convention.

An article in the NY Times headlined “The Cashless Bank that Deals in Millions,” reported There is only one bank in Basel that does not look like a million dollars. It is the super bank. Indeed it doubtful is there is anywhere a bank that looks less like a bank that does the Bank for International Settlements…There is no Bank for International Settlements stretching in big solid letter across its facade. There is no ostentatiously small bronze plaque at the door. There is nothing at all to reveal its identity to the passerby.

Nor did the building sound like a bank. There were no counters where banknotes rustled, no adding machines, nor even the sounds of a pen stretching on a ledger. The monies did not physically move through the BIS. When Germany made a reparations payment, it informed the BIS that the Reichsbank had credited the BIS’s account in Berlin. The BIS then informed the national banks of those countries receiving reparations, such as, for example, Britain, that the monies were available to draw on, if they so wished. If they did not, in case the movement of substantial sums might affect exchange rates, the funds remained in the BIS’s account. In the meantime, the BIS used the funds earmarked for Britain to buy securities-which it could sell if and when Britain wanted to draw its monies.

That was the theory. The practices, at least at first, was not quite so smooth. The bank’s American president wrote to HCF Finlayson, in Athens asking about the Bank of Greece’s gold. Some of the Greek bank’s gold may have gone missing. Rather like nowadays, it seemed the accounting at the Bank of Greece left something to be desired. What has ever happened to the gold at the Bank of Greece, some of which you thought might be left in our custody in Paris or elsewhere? inquired McGarrah, who as the president of the BIS might have been expected to know what it held and where. It might, be a good time to find the Greek fold and place with the BIS.

The BIS wrote McGarrah, could give the Bank of Greece all sorts of facilities, rather greater than those of a local Central Banks. For example, if the Bank of Greece held fold at the Bank of France and wanted to buy another currency, it first had to buy francs from the Bank of France. The Bank of Greece then converted the francs from the Bank of France. The Bank of Greece then converted the francs to the second currency, with all the usual losses of exchange rates and commissions. However, if the Bank of Greece held gold at the Bank of France in the name of the BIS, the BIS could give the Bank of Greece any currency it desire at any time and can fix an agreed rate without going through the actual exchange operation. And the BIS did not charge any commission. The BIS has extraordinary power to exchange currencies at the rates and values that they chose, deciding the hierarchy system of currency values, luring countries to leave their gold in the hands of BIS and work according to their currency exchange system by not charging commission. The US has exerted and demonstrated their financial prowess by constructing a currency exchange hierarchy system, valuing the US dollar as the strongest highest valued currency, and further exerting currency value dominance through being the world’s reserve currency, enforcing business transactions be conducted in US dollars, and enforcing the Petro Dollar which established the US Dollar as the tradeable currency for energy transactions.

[anonymouslove342-blog]

Science Fiction: Genetic Hard Drive

GENETIC HARD DRIVE: Science Fiction

The human body ticks all the boxes for a highly advanced biological computer system. A computer hard drive, or hard disk, stores information as digitally encoded data and the human body is almost the same. It’s hard drive is what we call genetics (biological instructions), including DNA, or deoxyribonucleic acid, and trillions of cells. You can see how reptilian our DNA looks in close up and how appropriate it is that DNA is often symbolized by the two snakes, caduceus, they symbol of the medical profession. When human procreate we this as two parents combining their genetics to produce a child that is a combination of both. Sometimes the physical and personality traits of one parent will be more emphasized, sometimes the other, and maybe even traits from further back in the genetic line. From the perspective that I am presenting here, what we call procreation is actually two hard drives, the parents, downloading their genetic data to produce a combination card drive, the genetics traits of a child. The two spiralling strands of DNA in the cell are said to be the body’s genetic library, but there is something to emphasize here. We need to remember that what we see as physical DNA and cells are only the decoded pictures that brain constructs from reading energetic/digital information. Cells, DBA and everything else we perceive as physical, are just the decoded reality that the genetic data is actually stored. The storage capacity is extraordinary. The more information than any device that human science can construct.

There is far more to DNA than just data storage, which scientists still know very little about in truth. 95-97% of DNA is called “junk DNA” because scientist have no idea what it does, stored in the body and lays remnant and docile, and is not used for bodily functionality. Stored genetic data from our evolution. But of course, it is not shockingly off the pace when it comes to understanding reality and how it works, plus the fact that Reptilian alien genetic manipulation has rewired and disconnected much of the junk DNA from its rightful function. DNA is a universal software program, DNA of all living things-biological computer systems are essentially alike in many ways. There is very different in the DNA genetic makeup of a mouse, a flower, a fish, or a human compared with the vast differences expressed in their physical form. Some 85% of genes in mice and humans are the same, similarly with rats. This makes the idea of rat brain cells flying a plane simulator seem less fantastic. DNA of all kinds has the same four codes, known as adenine, guanine, cytosine, and thymine or AGCT. The only difference between physical forms is the order in which these four codes are put together, and very small differences in the coding can produce massive differences in physical characteristics. DNA codes look like a digital sequence and they remind you of those green codes in the Matrix movies. So they should, because like everything in the virtual reality universe, DNA is a digital as well as vibrational phenomenon. Every desktop computer has its own digital identity code, and it is the same with the human body computer; it also has a unique vibrational code and does every species. They operate on specific wavelengths. It is through these compatible vibrational codes that members of a species can communicate over long distances. An article in the San Francisco Chronicle put it very well said: DNA is a universal software code. From bacteria to humans, the basic instructions for life are written with them same language. There can be no greater confirmation of the computer nature of the human body than the fact that cells are biological computer chips, and we have 75 trillion of them. Bruce Lipton, a research scientist and former medical school professor details his study of cells, particularly the cell membrane. He discovered that the membrane is a liquid crystal semiconductor with gates and channels and a computer chip is defined as a crystal semiconductor with gates and channels. He writes, “I spent several more intense seconds comparing and contrasting biomembranes with silicon semiconductors. I was momentarily stunned when I realized that the identical nature of their definitions was not a coincidence. The cell membrane was indeed a structural and functional equivalent of a silicon chip.

The principle component of semiconductors used in our electronic and chips is the silicon crystal, hence the term silicon valley in California and the silicon economy. Scientists have found that DNA and cells are indeed part of the hard drive of the body-computer.

CENTRAL PROCESSING: How appropriate that a central processing unit, or CPU, is known as the brain of a computer because it reads, processes, and filter all communications traffic. The brain is the central processing unit of the body. It filters information passing around the body, assesses it and decides what to do with it or where it should go. It controls the body’s electrical/chemical, or electrochemical, systems which are, another form of information communication and response. These systems connect with the meridian circuit board network of energy lines-which in turn interact with the series of vortices known by the ancient Sankskrit word for Chakra (meaning wheels of light). These chakras connect through into other energetic levels of being beyond human sight. All these sources of information are processed through the human brain, which operates on many levels than science appreciates. Its not just a central processing unit for the five senses; it operates multidimensionally. This means is that if a malevolent force wished to control human life by controlling human perception of self and the world then the brain would be a prime target within the physical realm. It is the brain that constructs the reality we think we are experiencing as the out there world of people, places and landscapes. Controlling the brain’s perception of reality dictates what people will experience as decoded physical reality. It will control their lives as we shall see.

One other point to stress about the brain and human genetics in general: the body is not just a computer; it is a biological, living, thinking computer and can respond to changing circumstances. It is believed by medical science wrongly as usual that the brain is hardwired or fixed from birth and cannot change with circumstances. If you damage your brain, that’s it, nothing can be done about the functions you have lost. This is patent nonsense, however, as the pioneers of what is called neuroplasticity have shown. Most people with strokes and many forms of brain damage and dysfunction by training the brain to rewire and decode information in another way. These are specific parts of the brain that specialize in certain senses and activities, but they can also perform other functions well. The emerging science of neuroplasticity has proved this beyond question.

Computer Memory: A computer has two forms of memory-the hard drive that retains information permanently, or until its erased, and a virtual memory, or RAM, which is used while you are working at the keyboard opening different files and other applications. When you open too many pages or files at one time and it breaches your RAM, or virtual memory space, you will get a notice on the screen saying that your virtual memory is too low and advising you to respond by closing some applications. When you press save on the computer the information held in the virtual memory is transferred to the hard drive to be held indefinitely. The body computer is the same; we call it short term and long term memory. We retain a certain amount of information for a very short time, not more than a minute is the general opinion of researchers, and what registers passes into the long term memory-or goes from RAM to hard drive. With forms of dementia and short term memory process can malfunction and so you have people who forget what they said or did a minute ago, but can clearly recall events of decades ago. Their save function is not working as it should. We also have a version of running low, we say, hold on, slow down, I can’t remember all of that. This is the body-computer’s way of saying my virtual memory is too low; please close some applications.

Basically anything you see, hear, touch, or experience enters almost instantly into your short term memory. We have short terms memories so we can use something immediately and then forget it is we no longer need to know it. We use it to recognize or understand something right at the moment that we’re faced with it. Everything, essentially with short term memory…

Your long term memory is where you keep all the memories and facts that you use to define who you are. Your first memory as a child, the first love letter you ever wrote or received, the time you broke your arm-its all in there. While we can’t explain for sure why we recall certain things and not others, we do know some things about long term memory. Information passes through short term to get to long term.

It’s the same principle as virtual memory and the hard drive.

COMPUTER SECURITY: Wherever you look with the human body, the computer analogy plays out. Everyone who works with a computer will be familiar with anti-virus or firewall software which blocks, isolates, or destroys viruses and files or other information that invades the computer system and causes it to malfunction. In the worst cases it can so scramble the operating and communication systems that they shut down altogether and won’t restart. In other words, computers die. Computer viruses are small software programs that are designed to spread from one computer to another and to interfere with computer operation. A virus might corrupt or delete data on your computer, use your email program to spread itself to other computers, or even erase everything on your hard disk. That’s how viruses and other forms of illness and disease attack the human body and can be spread from person to person. So are human viruses and other forms of disease. They are disruptive software programs within the virtual reality-information that is decoded by the body computer and causes it to miss read the usual flow of data. The makers of the Norton anti-virus system include this theme on their website:

One of the biggest slowdowns of a PC is caused by viruses, adware or spyware as it’s often called…A virus is a piece of malicious software code written to cause some kind of damage to a computer system, or network, or even the Internet itself. Viruses spread, similar to their biological namesake, from one machine to another and can spread havoc wherever they go.

When it reads the data accurately, the body is healthy because it is in digital and vibrational in harmony; but when the virus throws a symbolic spanner in the works (rogue data) it triggers information disharmony or what we call illness. Scientist may appear to see a physical virus under the microscope, but that’s only after his or her brain has decoded it into that form. We are 3 dimensional beings, but certain alien groups are 6 dimensional, thus verifying the differences of how we identify, sense, and understand reality. If we could see the virus before the decoding we would see it as digital (mathematical data software beyond its physical exterior), and on a mother level as a vibrating energy field or waveform. To deal with the explosion of computer viruses today we employ what is called anti-virus software, which is programmed to detect and deal with disruptive data packages before they can harm the computer’s operating system. This is an Internet explanation of how these anti-virus systems deal with one form of virus called malware which also goes under names like worms, trojan horses, rootkits, spyware, dishonest adware and crime ware: Signature based detection is the most common method that antivirus software utilizes to identify malware. To identify viruses and other malware, antivirus software compares the contents of a file to a dictionary of virus signatures. Because viruses can embed themselves in existing files, the entire file is searched, not just as a whole but also in pieces.

The makers of Norton Anti-Virus say of their software: It runs unobtrusively in the background, checking all vulnerable files for possible infection by mischievous, sometimes malevolent, programs called viruses and worms. It does this by looking for the identifying signatures of these worms and viruses and comparing them to known viruses for which it has files.

Those passages could just as easily be describing the human immune system, which is a fantastically more sophisticated version of anti-software. It creates firewalls to defend the body computer against attacks from disruptive data, better known as illness and disease, and to do this it compares the contents of a file to a dictionary of virus signatures. This is why when a new disease comes along which the immune system isn’t programmed to read, people can drop like flies because they have no protection. This happened when smallpox was introduced by Europeans to the then smallpox-free Native American population. New anti-virus signatures have to be programmed into desktop computers as new threats are identified, but because the body computer is living or biological it has the ability to think and work it out for itself. When a new disease emerges, the immune system eventually learns to identify the signature and deal with it. Ironically, and not by accident, vaccines are supposed to boost such protection with foreign proteins and weakened viruses to train the immune system to defend itself against a negative or dead disease or bacteria.

I have identified the body’s computer’s hard drive, circuit board, central processing unit, and memory systems, and the list of body-to-computer connections just goes on and on. What happens, for instance when a computer shuts down and ticks over with a blank screen and minimum activity? We say it is in sleep mode-the same state that our body computer foes into when it is at rest and using minimum energy to tick over. When a computer won’t turn on we say it is dead. And what is the quickest way to kill a computer? Drop its from a great height or deal it with a fierce blow. So it is with the body computer because, in both cases, it destroys the communication system that gives it life. Even some mainstream scientists are seeing the connections between computers and the human body, though not the wider implications of what that means. Computer work on the binary number system of 1 and 0 which represent on and off electrical impulses. I found this explanation on the Internet:

A digital computer is designed to process data in numerical form; its circuits perform directly the mathematical operations of addition, subtraction, multiplication, and division. The numbers operated on by a digital computer are expressed in the binary system; binary digits, or bits, are 0 and 1…Binary digits are easily expressed in the computer circuitry by the presence (1) or absence (0) of a current or voltage.

There are almost 300 extraterrestrial biological entities that live on and visit our planet, with advanced artificial intelligence capabilities and advanced weaponry, inducing mind control, telepathy, telekinesis, shapeshifting, take invisible form, hijack bodies through demon possession, are biological super soldiers, teleportation according to KGB files. This elicits much interest that needs to be further examined and tested for defense purposes. Advanced aliens who have infiltrated our planet for centuries and during the Eisenhower administration. The Mayan Civilization and Atlantis (our ancestors) during the story of Noah’s Ark were destroyed by extraterrestrials. I would like to study and analyze their biological forms and capabilities in order to protect against potential adversaries who seek to control and dominate humans, and find their biological weaknesses in battle. Furthermore, experiment with alien human genetic hybridization in constructing super soldiers, and treatments for those who have been injured during battle. From a chemical and scientific perspective, I would like to study alien weaponry as well in terms of how they function and operate.

Further biological analysis across phylogenies genetically will be discussed later on.

[anonymouslove342-blog]

Science Fiction: Forbidden Science

FORBIDDEN SCIENCE: Paranormal Phenomena through a scientific lens

“THE MIND - MATTER CONNECTION”

It has long been held, by metaphysicists, occultists, and many theologians alike, that there is no such thing as a mere thought: that a thought is a thing and exerts real power, a view some physicists are beginning to adopt as well. Thus, in esoteric and theological circles we find endless warning against unguarded thoughts, wrongly directed thoughts, and deliberately misused thoughts. We see one discipline and practice after another dinged to first center the individual, clear the mind, and enable proper focus on the desired thought or even contemplation of the void, a state of no though in a completely stilled and empty mind.Interestingly it has also emerged as an unexpectedly fruitful area for psi research on mass populations.

The great quest of psi research-repeatable, documented proof of the phenomena-hinges upon first constructing and conducting an experiment so airtight in every single aspect as to exclude all other sources of potential error, accidental or otherwise. To this end, there has been an ongoing effort to develop a truly random generator of events, events that can then be tested via rigorous statistical means for evidence of psi phenomena in the form of someone’s attempting to predict or even influence them.

The early work, under such pioneers as JB Rhine at Duke University in the 1920s, was based upon the calling of manual coin tosses and card draws, processes later automated and ultimately computerized. Such work also led to the development of Zener cards, the ones with the familiar stars, crosses, and the like, with the specific foal of giving the subjects trying to telepathically send the cards a strong, distinct mental image to convey the person acting as the telepathic receiving unit.

The advent of computers changed everything, though, by greatly increasing the speed and numbers of tests that could be conducted and the rate at which the resultant piles of data could be analyzed using statistical methods. Computers were themselves used as random number generators (RNGs), but it as soon found that the numeric seed used to key the RNG sequence was itself affecting the randomness of the numbers being generated. This led to a search for truly random phenomena, which could be harnessed for the painstaking work involved, one of which turned out to be radioactive decay.

Radioactive materials have inherent safety, legal, and administrative drawbacks, so there has recently been a migration to specialized, electromagnetically shielded RNGs, which utilize several types of exotic events (resistor noise and quantum tunneling) as the trigger for generating their random numbers. There are about fifty (a few less or more depending upon computer maintenance issues) such as devices in use worldwide for scientific research under the aegis of the Internet-based Global Consciousness Project (GCP), and their output is under the most minute scrutiny at all times. Theoretically, they are immune to human and other forms of intervention when operating properly and not having been tampered with, but several traumatic global incidents may have demonstrated en masse what generations of individual researchers couldn’t do in their labs-the influence of focused consciousness upon the real world. In that influence, properly understood, lies the very essence of metaphysics, ritual magic, and prayer-using nothing but thought energy to affect this earthly reality.

Dean Radin’s paper was but the latest in an ongoing series of investigations into the connection between mind and matter, with the earlier work being devoted to investigating the effects before, during, and after of highly focused or coherent group events, on the output of electronic noise based, truly random number generators (RNGs). How conclusions may startle: Results of these studies suggest in general that mind and matter are entangled in some fundamental way, and in particular that focused mental attention in groups is associated with negentropic fluctuations in streams of truly random data. In other words, focused mental attention of groups apparently is affecting the very randomness itself of the output from the RNGs, a theoretically impossible occurrence given their design and implementation.

No better test of this premise can be imagined than what befell the United States of America and the rest of the world (some seventy countries lost people when the World Trade Center was hit twice and quickly collapsed on September 11, 2001, and that was but part of the horror on a day that saw thousands of traumatic deaths and scenes of incredible devastation broadcast worldwide almost instantaneously. Dean Radin’s hypothesis was that such a catastrophe would in fact affect the RNGs’ data streams, and was he ever right. His painstaking research and analysis shows tat September 11, 2001 marked the single biggest negentropic episode to occur in the entire year of 2001. In order to be accepted, each device underwent a series of grueling tests, including a calibration test consisting of “one million 200-bit trials.”

It’s one thing to assert or claim that September 11th was the single largest negentropic fluctuation measured by Global Consciousness Project for the entire year of 2001. It is quite another, with much of the proof hinging upon a gamut of meticulous statistical tests, to say that the event caused the observed result, for there may well be other factors at work. Did the researcher, say, happened to choose an event window duration that caused data to display anomalously under the set of conditions and no other? Dean Radio addressed this matter by testing all kinds of window lengths. Was it an artifact of the sampling procedure? He reran the tests using a range of sampling methods, but the results didn’t change. The same hell true when he tries to find out whether unusual environmental conditions, diurnal condition (day-night, with their implication for electronic interference), or even cell phone usage might be skewing his data. Nothing was found to account for the obviously marked departure from the statistical norm for the behavior of the GCP network’s RNG. On September 11th, there is an extraordinary spike near the time of the attacks, driven by large deviations that preceded the first plane crashing into the WTC tower, corresponding the peak in the Z scores. The second spike occurs roughly seven hours later, with the weighted center at 1 PM. To make sure that he wasn’t falling himself by using knowledge obtained after the fact, he then went through multiple lists, day by day, of events reported for the year 2001 by several news services, nothing what event got how much coverage. Armed with this additional information, he then went back and applied the same statistical approach to other mass attention events, such as Princess Diana’s funeral, and found that the predicted outcome matched the observed outcome. In other words, events other than 9/11 that drew strong mass attention also generated negentropic fluctuations in the RNG network, though to a lesser degree.

Thoughts emit energy, and have power as evident in telekinesis, the ability of the mind to move objects. Exhibited telekinesis are evident in the graph where during periods of emotional distress and trauma such as the September 11th attack, negentropic fluctuation in the RNG peaked significantly, therefore the energy from emotional distress and trauma moved the RNG to peak levels. Electrical and energetic transmission has also been documented to transfer from person to person in telepathic communication demonstrated by grey aliens documented in the shadow government files. It has been hypothesized that the alien agenda of the Reptilian aliens genetically manipulated human DNA centuries ago, in order to take away our ability to “read minds” and communicate telepathically. The bible tells a story where God punished humans for their sins, and took away their ability to communicate, and essentially speak the same language. It can be inferred that symbolically, we all spoke the same language which was telepathic communication, and the sins committed and punishments were symbolic of the Reptilians who were demonized and infiltrated our populations and genetically manipulated our DNA. It was further hypothesized that Reptilians took away our telepathic capabilities in order to further control and subdue humans (Homo Sapien Sapiens). A biological evolutionary theory of our development today will be further discussed in another article. There is a large gap in the evolutionary timeline from humans evolving from fish to apes, and the gap in evolutionary biological development will be discussed, and has extraterrestrial alien connections. Documented humans (star children with the gift) who have telepathic capabilities have been suppressed into subversion with psychopharmaceutical medications by the Chinese government, and further gifted children within their population are monitored and surveilled by the Chinese government. It was theorized that President Nixon refused to meet with a grey alien because he was afraid the alien may read his mind, and tell the Russians what he was thinking. based on testimonies from the US military industrial complex’s physicists, Grey aliens have also been described to have telekinetic powers, such as in during the AREA 51 projects of reverse engineering and exchanging of anti-gravity technology with extraterrestrials, a grey alien telekinetically induced a fatal heart attack in a physicist who upset the grey alien. Morally and ethically, grey aliens have been described to lack remorse or ethics in murder because they believe in reincarnation. Their emotional frameworks encompass “robotic like features,” lacking in human emotion and morals. Based on testimonies, a grey alien captured described death and reincarnation in terms of, the soul transfers from body to body, and the soul never dies but transfers/travels metaphysically. Energy cannot be created nor destroyed. Grey aliens have also been described to having the ability to create artificial intelligence, intelligent robots that are utilized as soldiers and weapons. Based on a shadow government document, one US military soldier was attacked by an artificially intelligent robot with a laser beam sword that defended itself against bullets and being shot at, who was running with a grey alien, its master. Some aliens can shield themselves from bullets by teleporting into other dimensions, as they can physically withstand other dimensions that humans cannot survive in, or rather the human body. Some aliens are invisible to the human eye, can only be detected with thermal radar, and can physically travel through doors and walls. Some invisible aliens were caught sneaking into CIA headquarters.  In the past 50 years, with rapid development of technology, documented sightings of extraterrestrials significantly increased (UFO sightings) that monitor and surveil humans, especially around military bases that house nuclear weapons. The alien agendas throughout history will be further discussed in a later article. Are they afraid of nuclear war and humans blowing up the planet? Or were they here the entire time infiltrating the population through stealth, and we just didn’t have the technology before to detect them? With further disclosure of aliens, the CIA has given me permission to go through their alien files for my research. I am going to ask the Russians and the US government to give me alien DNA for me to genetically sequence and PCR for experimentation and genetic manipulation projects. I have in the past worked on the Human Genome Project in Genetic Evolutionary Studies of HOX fish. After experimentation, I plan to sell the results and analysis to my clients. Documented in shadow government files, are alien and human genetically manipulated and hybridized “Super Soldiers” for the US military Department of Defense.

On the contrary to what some may think, scientific investigations don’t always immediately yield answers to the questions they raise. In fact, even though we know how to manufacture and distribute electricity, we still don’t really understand it after centuries of study. Dean Radin’s situation is similar in that he believes he’s found an anomaly that appears to confirm to the mind matter hypothesis. He now needs to back to his fellow researchers with his results and conduct further tests, in order to more thoroughly exclude chance or the peculiar effects of some obscure analytical choice. While he does that, we have the luxury of leaping ahead and pondering the implications od what seems to be a staggering discovery.

India’s Mystic Military

The Chinese invaded Tibet and the Dalai Lama fled. This much many people know. Fewer know, though, of the systematic, ongoing ravaging and suppression of the Tibetan culture, institutions, monuments, writings, and above all the people themselvess, who have been made strangers and subhumans in their own land, deliberately dispossessed by waves of Chinese immigrant brought in to Sinize Tibet. An the Tibetan monks have been the direct and particular targets of Chinese repression, for it is they who iconify direct and particular targets of Chinese repression, for it is they who iconify the essence of the Tibetan culture, its deep spiritual beliefs that are the polar opposite of Communism, and in whom reside much of its cultural tradition.

Persecuted in their own country, many, like the Dalai Lama before them have fled to India, reportedly bringing with the a raft of mystical abilities, abilities hones by successive generation of monks over the millennia. Apparently you see, the Indian military is mining these refugees for their long guarded mystical techniques, evidently seeking a unique kind of military advantage. This was even more advanced-antigravity, stealth, and other technology, derived from the unlikeliest of sources: ancient Indian religious poems and stories such as the Ramayana and Vedas, with data mining using Sanskrit scholars and Hindu clerics in addition to the usual crop of military and technical experts. The tales of the Vedas (extraterrestrials) have also interested the US government, when 8 military soldiers were in search of a Veda alien aircraft hidden in the Middle East, they disappeared (it was a suicide mission where they were to investigate the Vedas), and were described by Middle Eastern people as having been killed by the invisible gods for disturbing their hidden aircraft. In the bible, the “burning bush” of Moses talking to an invisible God, was this actually the Vedas, described as God in the bible?

Here we are informed that not only can Tibetan monks do all sorts of amazing things, though never showing them in public, but so, too, can Hindu hermits deep in the Himalayas. Further, the article says that fighting while in stealth mode and using antigravity were common events in the same sacred Hindu literature described above. Evidently, the Indians are trying to reconnect with an all but lost part of their full capabilities.

Ancient Mystical Capability in Modern War: The literature of what’s been seen and occasionally even filmed in Tibet by travelers is remarkable. We read of monks stripped down to loin cloths draping wet towels around their necks while sitting cross-legged outside in the snow in winter and through special breathing techniques designed to raise the chi, or life force-competing to see which one dries his towel first. The applications of that ability along to combat in winter and adverse weather are obvious, for cold, wet troops tend to be ineffective and frequently become casualties. Monks have also been documented to be able to be unharmed after lighting their bodies on fire, through harnessing and controlling their life force, chi.

There are accounts of visitors observing monks on foot, sometimes heavily laden blazing across the countryside in rapt concentration and a speed more familiar to those who like to watch the Roadrunner cartoon character in action. When they have expressed a desire to stop and talk to these paragons of human performance, though, the visitors have consistently but politely been warned off, being told that such an interruptions could “damage” the monk, though not the mechanism, other than that it constituted a shock to the monk’s system.

Chi life force has also been documented by one monk, where he used his powers given by his gods to heal the sick. But after showing his telekinetic powers of electrical transmission, he was told by the gods that he is not to use his powers for “show” or will be punished by taking away his powers, so he refused to meet with journalists and filmmakers afterwards. Are the gods extraterrestrials? Is it demon possession? Demon possession cases in the shadow government files, scared a police officer and social worker who went to investigate a child abuse case. The mother claimed her child was demon possessed, and her home was a haunted portal for the devil. A demon possessed child walked backwards up a wall on the ceiling, defying gravity and showing extraordinary paranormal phenomena. Demon possession is my belief to be an alien that lives inside a human body. Those who are demon possessed have been documented to speak languages they have never spoken before, and have shown to be able to levitate, while chanting ancient languages such as Sumerian.

Antigravity researcher Bruce Cathie, in his monograph “Acoustic Levitation of Stones,” part of antigravity and the world grid, edited by Hatcher-Childress, describes how in 1939 a Swedish doctor names Jarl, while on a scholarly visit to Egypt from Oxford, was contacted by a messenger from a Tibetan friend who’d been a fellow student with him in England. The messenger bore an urgent request that Dr. Jarl go to Tibet and treat and an old sick Lama (Tibetan monk). The Lama was important. She showed documented films of this. They showed carefully arrayed drummers, trumpeters, and singing, chanting monks aligned in a 90 degree arc 63 meter from a 1x1.5 meter stone set in a 1 meter bowl in a flat polished stone in the meadow. The instruments amounted to thirteen drums and six Tibetan trumpets. What happened next bears direct quotation:

When the stone was in position the monk behind the small drum gave a signal to start the convert. The small drum had a very sharp sound, and could be heard even with the other instruments making a terrible din. All the monks were singing and chanting a prayer, slowly increasing the tempo of this unbelievable noise. During the first four minutes nothing happened, then as the speed of the drumming and the noise increased, the big stone block started to rock and sway, and suddenly it took to the air with an increasing speed in the direction of the platform in front of the cave hols 2.5 meters high. After 3 minutes of ascent it landed on the platform. Continuously through brought new blocks to the meadow, and the monks, using this method, transported 5 to 6 blocks per hour on a parabolic flight track approximately 500 meters long and 250 meters high.

For those of you not accustomed to the metric system, that repeatedly and in a controlled manner, using nothing but concentrated sound and prayer, launching rocks weighing hundreds of pounds 82 stories high and almost a third of a mile downrange. The military applications of this acoustic levitation approach were so patently obvious that the English Scientific Society declared the work classified, and forbidden to the public. The reference monograph contain a much fuller description, together with a detailed discussion of the underling special mathematics though to make the levitation phenomena work.

The more truly advanced a society becomes, the less it need technology per se, and the more its able to accomplish things through thought and focused will, what the article terms “spiritual power,” a concept we encounter again and again in ancient texts, in discussions with shamans, and in a stack of UFO contact reports.

We read that what less advanced civilizations do with technology, more advanced ones do through the powers of their minds, literally molding reality to suit their needs. Which of course goes right back to all those warnings from religious and metaphysical teachers about guarding our thoughts and our tongues. Certain sources talk about earth’s being in a quarantine because its inhabitants would cause wholesale havoc in the universe beyond, which words on the principle of bringing things into being by simply speaking them.

TO BE CONTINUED

[anonymouslove342-blog]

Chi Energy

https://www.youtube.com/watch?v=3F3ovb2kZ9Q

[anonymouslove342-blog]

Levitation

https://www.youtube.com/watch?v=QVi0vFRjMXk

[anonymouslove342-blog]

Scary Magic

https://www.youtube.com/watch?v=7D_BNS2yL_0

[anonymouslove342-blog]

Third Eye: Pineal Gland

https://www.youtube.com/watch?v=ZtLkzg8bFgA

[anonymouslove342-blog]

Russian Chinese and American Alliance

Russians Chinese and Americans plan massive campaign to flush secret Khazarian government into the open

High level meetings between Chinese, Russian and US military types have reached the conclusion that a short sharp war may be necessary in order to flush out the Nazis and their secret world network, Asian secret society and Pentagon sources say. The plan to flush out the secret government will take the form of a joint US, Russian and Chinese military attack on North Korea, the sources say. “This will force North Korea’s ET backers out into the open,” the Asian secret society sources say.

by benjamin | 2017-07-17

Years of forensic research by this writer have revealed a secret network connecting gold mines in the South Pacific, off the grid Antarctic bases, hidden submarine bases, the world narcotics trade, North Korea and Israel among other things. This network, created by fascist allies who did not surrender at the end of World War II, is believed to be supplying North Korea with its nuclear weapons and missiles.

For that reason, the Asian secret society sources say a campaign portraying North Korea as a villain will be intensified over the coming months in preparation for a short but intense war early next year. This war will not involve countries as they exist now but rather would be between hidden forces behind countries, the sources say. So the Russians, the Chinese and the Americans would attack North Korea who would be backed by secret Russian, Chinese and American factions, making it a war between secret societies rather than a traditional one between countries, the sources agree. The aim will be to force out secret groups operating behind the scenes into the open, the Asian secret society sources say.

Pentagon sources say that North Korea and Israel are intimately linked entities. To put pressure on them, Russian troops entered Southern Syria opposite the Golan Heights last week, they say. At the same time Russia fired an Iskander missile from a Jewish Autonomous Oblast near Korea “to send a blunt message that Israel must return the Golan Heights,” the Pentagon sources say.

The Jews are also waking up to the fact that their Khazarian mafia overlords are the same people who engineered the holocaust. Maj. Gen. Yair Golan, the Israeli army’s deputy chief of staff, last week compared Israel’s current government to the Nazis and has refused to back down, a sign the Khazarians are likely to lose control of Israel as well as North Korea.

http://www.blacklistednews.com/IDF_Chief_Says_Israel_is_Becoming_Like_Nazi_Germany%2C_Refuses_to_Back_Down/59669/0/38/38/Y/M.html

Japan’s government recently passed a conspiracy bill that allows it to arrest people planning to commit a crime because they want to have a legal excuse to detain all the professional war makers who are expected to flee from North Korea to Japan once the fighting breaks out, the Asian sources say.

Of course, the ideal solution will be to bring these secret groups out of the closet without actually having to resort to a war, White Dragon Society sources in Asia say.

The other very interesting subject brought up by the Asian secret society sources has to do with artificial intelligence. Strange as it may sound, there is a growing consensus that the reality we are experiencing is the product of an artificial intelligence. This has been told to us in the past by a member of the MJ12 group, by the gnostic illuminati and now by the Asian secret society. Furthermore, this AI appears to be stuck in a loop.

This may seem weird but if you step back from the daily news or even weekly news and take a longer term view, we do see massive repetition in certain aspects of world news. For example, if you read articles about Israel and the Palestinians from the 1970’s, they would be very hard to distinguish from articles appearing this year. The whole issue seems to be stuck in a repetitive feedback loop.

The same thing can be said about North Korea where problems related to that country setting off missiles that “could soon hit the United States,” have been repeating in a loop for many years. In fact, North Korea put up a satellite in 1998, meaning it has long had the capability to hit the continental United States with a nuclear weapon. So why do they keep repeating the North Korean missile meme?

Other long term repeating news loops include arguments over disputed Islands in the South China Sea, 70-year old issues relating to World War 2, the Ukraine, Iran etc.

The other loop I have seen repeated for the past several decades is the announcement of the discovery of a way to prolong life that is followed up a few weeks later with a reason why this method will not be pursued. The source of these recurring news loops has been traced to the Khazarian mafia. However, weird as it may seem, when this writer followed the forensic trail from David Rockefeller to the Rothschilds to the Vatican P2 lodge, it ended up leading to people in Italy and Switzerland, like Vincenzo Mazzara, a cavalier of the Teutonic Knights, who claim they get their orders via gamma rays from an entity they know as the black sun.

For those of us who prefer to look at the real, here and now world, there is still a clear case to be made that certain actors in the intelligence community work on a secret agenda keep repeating certain news cycles to the detriment of humanity as a whole.

There is a chance we can finally put an end to this nonsense as early as this autumn. One key battleground will be Japan. Now that Richard Armitage has been bought off and Rothschild agent Michael Greenberg is a hunted man, the relatively moderate Gerald Curtis has become the top Japan handler for the American occupation forces.

The top Japanese power broker is now a man by the name of Kazuyoshi Kokubo, who is a son of the Emperor Hirohito born by a Korean princess, according to Japanese royal family sources. There is also the old warhorse former Prime Minister Yasuhiro Nakasone who has been working hard to create a government here favourable to Henry Kissinger, the sources say. These people can be removed if necessary, Japanese underworld sources say.

The Asian secret societies, Japanese underworld bosses and US military and intelligence agency white hats have agreed that making Japan an independent country once again would be a game changer for the entire planet.

If Japan became independent it would immediately stop the looting of its banks, pension funds, postal savings and other wealth by the Khazarian mafia. This would definitively pull the plug on the United States corporate government in Washington DC as well as Israel.

[anonymouslove342-blog]

Anonymous:WW3

https://www.youtube.com/watch?v=iOWsSRchpOw

[anonymouslove342-blog]

Time Traveler Year 2749

https://www.youtube.com/watch?v=O6cQF3MLQVc

[anonymouslove342-blog]

Project Camelot: Super Soldiers

https://www.youtube.com/watch?v=6FbOiIdgbl0

[anonymouslove342-blog]

NASA Image: Weapon on Mars https://www.youtube.com/watch?v=QJDfw4RNOWU

[anonymouslove342-blog]

Aliens Behind AIDS and Ebola: New World Order https://www.youtube.com/watch?v=qajeN2NFLqw