Citigroup internal analysis memo from Oct2005 PREDICTED protests once plutocracy became apparent.

[blm]

http://canadianclimateaction.files.wordpress.com/2010/08/citigroup-oct-16-2005-plutonomy-report-part-1.pdf

>>>>
SUMMARY
➤ The World is dividing into two blocs - the Plutonomy and the rest. The U.S.,
UK, and Canada are the key Plutonomies - economies powered by the wealthy.
Continental Europe (ex-Italy) and Japan are in the egalitarian bloc.

➤ Equity risk premium embedded in “global imbalances” are unwarranted. In
plutonomies the rich absorb a disproportionate chunk of the economy and have
a massive impact on reported aggregate numbers like savings rates, current
account deficits, consumption levels, etc. This imbalance in inequality
expresses itself in the standard scary “ global imbalances”. We worry less.

➤ There is no “average consumer” in a Plutonomy. Consensus analyses focusing
on the “average” consumer are flawed from the start. The Plutonomy Stock
Basket outperformed MSCI AC World by 6.8% per year since 1985. Does
even better if equities beat housing.
>>>>

Must read entire internal memo.

[dkf]

1. Funny I don't think that is the plutonomy we are going to land up with.

US, UK and Canada? Nah.

[blm]

3. nope, more like US-UAE-China, aka BushInc.

.

[Kablooie]

26. It is not talking about the future. It talks about now.

[blm]

29. yep...what they were saying in 2005 - all money in hands of wealthiest - happened by 2008.

.

[salin]

2. interesting read, thanks.

:hi:

[blm]

14. please spread....and...nice to see you around

; )

[xchrom]

4. Recommend

[Fire Walk With Me]

5. The pendulum swings.

"Sa-wing batta batta batta." -Ferris Bueller's Day Off

[blm]

6. so I hope

.

[postatomic]

7. Can you point me to where it predicted Protests?

I can't find it.
:shrug:

[blm]

8. It'd be more accurate of me to say it predicted the WHY of the protests...the growing inequality.

They not only KNEW it was happening in 2005 they were preparing for even greater disparities.

You're right, though, I did word that subject line a bit awkwardly.

[postatomic]

10. No problem

The only reversal of plutocracy that it suggests is if the electorate takes action. If the protests result in the electorate changing the inequality then it's all good.

This study says what I've been saying for a few years. Consumer Spending and Consumer Confidence are irrelevant "statistics" and the Stock Market is just one big board game of Monopoly played by the very wealthy (the 1%).

Thank you for posting this.
:hi:

[blm]

12. Well, that's the part where I inject the OWS protests, as the 'electorate' taking action.

.

[Gman]

9. Fascinating

It quantifies much of what we see intuitively.

[jwirr]

11. They are probably all moving more of their hard earned cash off

shore and preparing their island paradise to retreat to. After they get out would someone lock the door behind them, please?

[blm]

13. They think that writing these memos IS hard work that deserves huge rewards.

.

[AntiFascist]

15. The distinction they make is calling it a "plutonomy" rather than plutocracy...

but the truth is that they would not have the power that they do without political control over both parties. That's why the K Street occupation is particularly important.

[EdMaven]

16. My guess is this is one of those spoofs by someone like the Yes-Men instead of really being

from Citigroup.

[blm]

17. Didn't Michael Moore reference this memo in Capitalism, A Love Story?

Ajay Kapur left Citigroup in 2007 along with Niall Macleod, and it seems to me that if they didn't write this, then they would have tracked who did and sued them...bigtime.

So....it appears to be legit to me, so far.

[EdMaven]

18. No idea. But reading through it I find 99% of it is an exposition about growing inequality --

using lefty sources -- (Ed Wolff)

and very little of it is about the concerns of actors like Citi -- investment strategy and analysis.

[blm]

19. well, they do exist and did work at Citigroup according to Bloomberg

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=ab2nYXJA_8QQ&refer=us

I think the point they were making is that they and their clientele are IMMUNE to the normal corrections because of ineffective governance. Pretty much the point that most of us have been making for a decade now. I think THEY are being honest and gleeful about the position they hold.

[blm]

20. BTW, EdMaven, these analysts are apparently unafraid to acknowledge the truth of their

positions ( they aren't in any peril) and that truth just happens to coincide with what has been observed by many economists from the left and center. That's why it may read to someone like parody. But then, truth often does, doesn't it?

[EdMaven]

21. I can well believe that the Citi boys might see the situation as an opportunity to make

money using certain strategies. They see war like that, why not plutocracy?

What makes me wonder about this specific piece is that it goes into so much educational detail about the inequality using lefty sources.

Just my opinion. I may be wrong.

[blm]

22. well, they were doing a real report...if they used RW sources they'd be using propaganda created

specifically to divert attention from the wrongs being committed by the financial industry and its elite clientele.

Colbert sez, "Facts have a liberal bias."

[TacticalPeek]

23. blm johnson is correct.

from a kpete post in 2009:

Michael Moore highlights a confidential report that Citigroup initially circulated only to it's wealthiest customers. Those reports, since leaked, plainly discuss the power of the Plutonomy in America, and how it would only strengthen, as long as the "the rest us" (the non-plutonics) could be kept in the dark about the Plutonomy existence, its role, and its over-arching control in the American Economy.

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=6694962&mesg_id=6694962

[blm]

24. Thanks for linking to that.....the corpmedia sure buried this story at the time.

.

[Ichingcarpenter]

27. The memo is real

Citi must have been looking at 'game theory' senarios with their super computers. The memo was scrapped off their website but still exists in hyperspace just like the New American Century memo was taken off but still exists.

[blm]

28. thanks...and wondering why TeaParty never managed to be outraged by this back in 2009-10.

.

[blm]

25. ^^^^^ PLEASE SPREAD THIS INFO ^^^^^

.

[geek tragedy]

30. Obvious hoax. Unrec. nt

[geek tragedy]

31. Actually, this is real. REC. nt

[blm]

32. I get why you thought it was a hoax. When analysts think no one's listening they DO acknowledge the

truth of the graphs charted by honest economists (notably from the left) not their paid-for economic pundit whores.