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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsNo Conspiracy Theory -- A Small Group of Companies Have Enormous Power Over the World
http://www.alternet.org/world/no-conspiracy-theory-small-group-companies-have-enormous-power-over-worldA major scientific study identified a number of companies with outsized control over a huge portion of the earth's economy.
In October of 2011, New Scientist reported that a scientific study on the global financial system was undertaken by three complex systems theorists at the Swiss Federal Institute of Technology in Zurich, Switzerland. The conclusion of the study revealed what many theorists and observers have noted for years, decades, and indeed, even centuries: An analysis of the relationships between 43,000 transnational corporations has identified a relatively small group of companies, mainly banks, with disproportionate power over the global economy. As one of the researchers stated, Reality is so complex, we must move away from dogma, whether its conspiracy theories or free-market Our analysis is reality-based. Using a database which listed 37 million companies and investors worldwide, the researchers studied all 43,060 trans-national corporations (TNCs), including the share ownerships linking them.[1~footnotes at the end of the article]
The mapping of power was through the construction of a model showing which companies controlled which other companies through shareholdings. The web of ownership revealed a core of 1,318 companies with ties to two or more other companies. This core was found to own roughly 80% of global revenues for the entire set of 43,000 TNCs. And then came what the researchers referred to as the super-entity of 147 tightly-knit companies, which all own each other, and collectively own 40% of the total wealth in the entire network. One of the researchers noted, In effect, less than 1 per cent of the companies were able to control 40 per cent of the entire network. This network poses a huge risk to the global economy, as, If one [company] suffers distress this propagates. The study was undertaken with a data set established prior to the economic crisis, thus, as the financial crisis forced some banks to die (Lehman Bros.) and others to merge, the super-entity would now be even more connected, concentrated, and problematic for the economy.[2]
The top 50 companies on the list of the super-entity included (as of 2007):
Barclays Plc (#1), Capital Group Companies Inc (#2), FMR Corporation (#3), AXA (#4), State Street Corporation (#5), JP Morgan Chase & Co. (#6), UBS AG (#9), Merrill Lynch & Co Inc (#10), Deutsche Bank (#12), Credit Suisse Group (#14), Bank of New York Mellon Corp (#16), Goldman Sachs Group (#18), Morgan Stanley (#21), Société Générale (#24), Bank of America Corporation (#25), Lloyds TSB Group (#26), Lehman Brothers Holdings (#34), Sun Life Financial (#35), ING Groep (#41), BNP Paribas (#46), and several others.[3]
***if i was the leader of a nation - i would think this was an issue of national security.
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No Conspiracy Theory -- A Small Group of Companies Have Enormous Power Over the World (Original Post)
xchrom
Nov 2012
OP
Where have I seen that number before?
Where have I seen that number before?
leveymg
(36,418 posts)3. Enforce Antitrust Laws! - Break up the 147 into competing units.
The legal power to do this exists. It just isn't being exercised, anymore.