Wednesday, 27 May 2020

All That Glitters Isn’t Goldman

Updated: May 8, 2010 12:52 pm

The influence of finance capital on global politics is much greater than that of industrial capital. Finance capital is opaque. It pulls levers from behind the curtain. It enjoys invisible power that reaches all corners of the world. Goldman Sachs is a key player in the world of finance. Economic analysts have identified Goldman Sachs as the one institution most responsible for creating the global economic meltdown. Goldman Sachs was the crucial fund raiser for President Obama’s election campaign that made America’s first Black President the richest presidential candidate in US history. Credible political analysts have opined that had the economic meltdown not occurred when it did Obama may not have won the election. Goldman Sachs has been identified as the biggest profiteer of the economic meltdown. Last week Goldman Sachs was prosecuted by the US Securities and Exchange Commission for committing fraud.

            China has already displayed how beholden it is to American finance capital. US multinationals diverted investment from the US domestic market to China which provides unusually cheap labour. The diversion of US investment increased unemployment. In other words American finance capital is selling for its own profit goods produced cheaply in China to Americans rendered unemployed by denying them due investment. 60 per cent of the Chinese exports to America are owned by US firms. Chinese political leaders happily exploit Chinese labour while their own sons and grandsons settle down in America. Deng Xiaoping’s grandson, Jiang Zemin’s son, and the children of a vast number of China’s top leaders are ensconced in the US to provide a safety exit for politicians in case it is required.

            Indian Marxists never tire of criticising Prime Minister Manmohan

Singh of behaving like a lackey of American capitalists. They could be right. But why are they silent about the equally pathetic conduct of their Chinese and Russian mentors? Consider the establishment of BRIC comprising Brazil, Russia, India and China to function as an economic bloc. Apart from the size of economy what commonality do these four nations enjoy to justify the creation of such a bloc? The only rationale for its establishment is the huge potential global investment markets it will create to satisfy the hunger of rapacious global finance capital. And who created BRIC? Its author was none other than Goldman Sachs.

            Prime Minister Manmohan Singh told media that BRIC was the result of a report of Goldman Sachs into which the four member nations were trying to put life. He said: “The Goldman Sachs report suggested that over the next 50 years Brazil, Russia, India and China—the BRIC economies—could become a larger force in the world economy.” Oh, really? Goldman Sachs takes a long term view of 50 years, cracks its whip, and the governments of Brazil, Russia, India and China jump like performing monkeys! Dr Manmohan Singh’s alacrity is not surprising. But what do Comrade Prakash Karat and his colleagues have to say about the pathetic compliance of Prime Minister Putin and President Hu Jintao? Speak up comrades! Do tell us what you think about the Left lackeys of evil American capitalism!

            It is shameful that the Indian government should chase the mirage of BRIC at the bidding of Goldman Sachs while it ignores areas of vital concern to India. Two glaring instances immediately come to mind. London’s latest Sunday Times reported an interview suggesting that Mullah Omar was ready for peace talks with the West and was prepared to stay out of the government. This scribe has been urging India to take an initiative to help President Karzai and the Taliban to cooperate for forming a national consensus in Afghanistan. Why does not the government act?

            Also during the weekend President Ahmadinejad unfolded his plan for nuclear security. He suggested the formation of a new international group excluding the big five nuclear powers to supervise disarmament and non-proliferation under the aegis of the UN General Assembly. This proposal is not dissimilar to what this scribe had suggested in his letter to President Ahmadinejad. India is the logical choice to help Iran implement this proposal. Why is the government impotent? Or is it that Goldman Sachs has not yet given the nod?

By Rajinder Puri

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