General [George] Marshall once told me that, when you change a policy, you must change the men too. ~ President John F. Kennedy
Global 2.0 to 3.0
For a description of the shift from Global 2.0 to 3.0, see Solari Core Concepts.
David Rockefeller’s Death – The End of an Era
One of the most significant events of 2017 was David Rockefeller’s death in March at the age of 101. Rockefeller’s death and the passing of George H. W. Bush and his colleagues from positions of “syndicate” leadership represent a shift of an entire generation from the geopolitical stage. These are the people who led the global Bretton Woods trading system, organized the Kennedy assassination, engineered globalization with progressive rounds of GATT and approved 911 and the Global Chessboard strategy. The failure of Jeb Bush or Hillary Clinton to win the Presidency in the 2016 campaign accelerated this passing.
- David Rockefeller, Philanthropist and Head of Chase Manhattan, Dies at 101
- Solari Report: The Devils Chessboard with David Talbot
This passage comes with a shift of power to Global 3.0 leadership. The Rockefellers and their allies were relatively concerned with their public image. A new generation is emerging, many of whom are less concerned with any image of respectability. They have a much more highly centralized control apparatus, invisible surveillance and weaponry and are confident in the power of mind control, software and media manipulation. They are even more likely to manage the general population without empathy.
Another characteristic of this passage is that many of the people who engineered the financial coup d’etat are no longer necessary. Many will be purged – some in a public manner designed to please a general population upset about the reduction in their quality of life and the inability of existing institutions such as governments and pension funds to fulfill their obligations. Mr. Global will try to please the crowd with the heads of people who need to be moved out anyway. The goal is to keep the assets, maintain control and reinvest successfully.
I described this state of affairs in the cartoon we published in the 2nd Quarter 2017 Wrap Up Enforce the Constitution
A clear indication that the acceleration of the shift from Global 2.0 to Global 3.0 had been approved was the Amazon purchase of Whole Foods in June.
Amazon continued to make waves throughout the year, as the military joined the CIA and seventeen intelligence agencies in Amazon’s cloud. This represented an important shift of Department of Defense systems out of the defense contractors and into the tech industry.
- The Military Is Offering Amazon A $5 Billion Contract Without Seeing If Anyone Can Do It Cheaper
- Bezos Cashes in on Lobbying Washington with Amazon’s $53 Billion Deal to Supply Pentagon
When the Amazon deal for Whole Foods was announced, Amazon and Whole Foods combined market cap increased by $15 billion. However, the combined market cap of the other traded grocery stocks decreased by $40 billion. This is the deflationary impact of information systems and new technology squeezing margins across an industry. All year long the markets contemplated what could be done to additional industries. This included health care as Walgreens and CVS announced record store closings.
The Retail Squeeze
The impact of on linesales and the continuing squeeze on the middle class was felt throughout the retail industry. Shopping malls across the country struggled while restaurants and the retail industry welcomed relief with tax reform passed at year-end.
Another indication of this shift was increased integration of robotics and artificial intelligence in numerous industries. The competition in electric and self-driving cars as well as innovation in energy technology, were two of numerous examples where these changes made it challenging to assess risks to current and future market valuations.
With a shift in leadership comes purges. Out go the old guys, in come the new guys. In some cases new guys also get purged by an establishment and various factions fighting back. The transition from Global 2.0 to Global 3.0 will not be bloodless nor will the real reasons for the changes be made public.
The purges began with the Trump purges – purges of the people who helped Trump win the election but were challenged running the White House under a President with no government management experience. The Trump purges also included more than a few people in the media and think tanks that had been crucial in helping Trump get elected.
- Loved and loathed, Roger Ailes transformed U.S. media landscape
- Roger Ailes, Former Fox CEO, Dead at 77
- The Political Assassination of Michael Flynn
- Bill O’Reilly is Fired by Fox News
- Steve Bannon Declares ‘Trump Presidency is Over’ after Being Ousted as White House Chief Strategist
- The Trump Casualties
With the Trump purges well underway (some relying on sex allegations), the sex purges launched with resignations, investigations and prosecutions throughout Hollywood, Washington and the Arts. Famous targets included former Congressman Anthony Weiner, movie mogul Harvey Weinstein, Congressman John Conyers, conductor James Levine, Senator Al Franken and many more.
There are three important points worth noting about the sex purges of 2017.
First, what has been disclosed to date is the tip of the iceberg. The pedophilia problem has to be addressed if we are going to make any progress as a society.
Second, a reading of the stories of the leaders of the #MeToo movement demonstrates that confronting a person that has seriously harassed you is a more intelligent response to the debasement of our civilization than keeping your mouth shut and voting for a female Presidential candidate with a significant criminal history. In this sense, #MeToo represents progress.
Third, many of the sex purges are happening not to address harassment, but to re-engineer old leadership out. Corporations are saving money on expensive contracts- while younger people are being moved in. Angry constituencies receive attention, buying into the new Global 3.0 leadership. Ultimately this is reengineering away from the “middle management” who had power during the financial coup d’état. The fundamental governance structure remains in place.
Different skills are required for the next phase.
This brings us to shakedown purges. With the financial coup over and a turn to reinvestment in the real economy, including integration of new technologies, Global 2.0 leadership with big egos and big bank accounts is on the way out – especially where money is tight. Saudi Arabia led in shakedown purges in 2017. These purges were designed to shift billions out of private hands and back into state or syndicate coffers.
- The Dog That Didn’t Bark: Imprisoning and Torturing Billionaire Oligarchs
- Anatomy of a purge: MBS’s actions, Saudi Arabia’s crisis, and its coming collapse
Our prediction is that shakedown purges in Saudi Arabia are a prelude. President Trump issued Executive Order Blocking the Property of Persons Involved in Serious Human Rights Abuse or Corruption on December 21, immediately after US tax reform legislation was finalized. It is not clear how this order in combination with the existing asset seizure and forfeiture and financial sanctions laws will be applied. It is likely that many efforts to recapture money will be executed quietly. Whether quiet or not, expect fireworks.
- Executive Order Blocking the Property of Persons Involved in Serious Human Rights Abuse or Corruption
Whether his resignation signaled that tax reform represented the successful consolidation of the Trump Administration and the failure of the Russia narrative, or concerns about his personal liability, given the Executive Order and FBI investigation of the Clinton Foundation, major Clinton backer Alphabet CEO Eric Schmidt, resigned shortly after the Executive Order was signed. Expect more resignations in 2018.
One potential sign that shakedown purges are happening is the continued hacking of prominent law firms in the offshore system.
- Bermuda cyber hack: Offshore law firm data hack leaves super-rich bracing for financial details to be released
- Paradise Papers
This is part of the effort to repatriate capital to the United States.
Another theme that is emerging as the shift from Global 2.0 to Global 3.0 continues, is the relationship between the two sides of the “central banking-warfare” model. We are watching a power shift within the national security state. The warfare side of the house appears to be gaining power relative to the bankers now that the financial coup d’état is over. Those who are responsible for concrete operations and assets are reasserting their authority to ensure the fundamental stability of the system. Let’s see if they convert this towards a more permanent shift in power and performance in 2018.
At the center of the purges are tensions resulting from the continued power of the Neocons, their support for Israel, promotion of war with Iran and in the Middle East and success at negating the Trump Administration’s campaign promises to reduce foreign military commitments. This problem includes a growing number of leaders in Congressional or Administration positions that hold dual Israeli citizenship and continue to legislate against free speech regarding their conflicts of interest and Israeli influence on US politics.
- All 100 Senators Sign Letter Against U.N. Actions to Bring Israel to Account
- US Lawmakers Seek to Criminally Outlaw Support for Boycott Campaign Against Israel
- Maryland Governor Signs Order to Block Boycott of Israel
Congresswoman Cynthia McKinney discussed the challenge in depth in her discussion, Enforce the Constitution on the Solari Report this year. You can find this interview, as well as many other Solari Report at the special web presentation we created in 2017 regarding the enforcement of the US Constitution.
During 2017 Australia seems to have figured out their dual citizenship scandal and is holding the line on these conflicts of interest. The US needs to do the same.
The most disturbing signs of purges are ongoing assassinations, weather warfare, and, what appears to be, thermal warfare north of San Francisco and Los Angeles and in a number of locations in Southern Europe. These reflect leadership in a hurry, prepared to move quickly and achieve their goals in highly economic ways using invisible warfare against significant numbers of peaceful civilians. To the extent that these are covert operations, the disregard of the law is profound.
The fires in Northern California were a particular concern. Was Silicon Valley investment leadership clearing land for a Silicon Valley North? We think this was one of the most important Unanswered Questions of 2017. These fires and numerous assassinations and suspicious deaths have us asking whether the United States and Southern Europe run the risk of a full scale Phoenix Program.
We are also curious to know whether the fire at Murdoch’s Bel Air Estate had anything to do with his decision to sell Fox Entertainment to Disney
- Despite Some Fire Damage, Rupert Murdoch’s Moraga Winery in Bel Air Is Back in Business
- Disney Deal Set to Value Fox at more than $75 Billion
We’ve Only Just Begun
Expect acceleration of the shift from Global 2.0 to Global 3.0 to continue throughout 2018.