Money and Power vs. 'Money Power'
By Anthony Wile - November 09, 2013

Forbes has posted an article, "New York Is The New Power For Silicon Valley Tech IPOs," explaining the Valley is now subservient to New York.

But was Silicon Valley ever really in charge? This article will make the point that the balance of power never really shifted; alternative perceptions simply don't recognize the fullness of control exercised by the top men of finance who also control, not coincidentally, central banks.

A caveat. Here at The Daily Bell, we often enjoy Forbes magazine, which (unusually for the mainstream media) can offer a credible libertarian perspective, unlike, say, The Economist magazine, which pretends to support free-markets while focusing on regulation and politics as a way to enhance them.

We've interviewed top people from Forbes and noted how Forbes publishes articles that are pro-gold, disapproves of monopoly fiat and even from time to time allows its columnists to call for the abolition of the Federal Reserve and central banking in general.

But as much as this particular article from Forbes contains some powerful insights, overall it unfortunately reinforces an elite dominant social theme – that US finance is a chaotic and democratic environment, just as in the past.

No … not so. Sorry.

Today, thanks in large part to the Internet, we know a good deal more about how the US is really organized. Like the rest of the West, it seems to be run by shadowy intelligence agencies that report to a higher authority that may not even have a physical presence on the continent.

The recent revelations about the NSA are no surprise when seen from this perspective. The Power sits and glowers like Sauron's eye and projects its fiercesome influence around the world via the jumble of acronyms that constitute its modern-day Praetorian Guard.

Really, there are no nations, only hollowed-out cultures … increasingly miserable populations adrift in this or that region and beset by public education, bankrupted by fiat business cycles and distracted by the endless banalities of "free media."

It is a clever system that has been erected over at least 300 years' time. That it is likely falling apart now or is at least less effective since its main promotional weapons – dominant social themes – have been thoroughly exposed by technology, is a welcome occurrence. But it is not one that yet changes the current reality: Power is intensely concentrated in the West and remains so.

That is surely enough reason enough to question this current article – despite its acuity and the good reporting and writing of the author. Here's some more:

It was impossible to miss the powerful symbolism of seeing Twitter CEO Dick Costolo, flanked by Twitter co-founders Jack Dorsey, Evan Williams and Biz Stone, on the floor of the New York Stock Exchange this week.

The balance of power for Silicon Valley tech IPOs has shifted to New York. Silicon Valley has long been wary of New York and Wall Street. Tech entrepreneurs, their promoters and financial backers, have long viewed New York suspiciously—leaches who suck off fees without creating anything of value.

Even if Silicon Valley entrepreneurs had to go to New York for IPO road shows or to ring in trading on Nasdaq, they tried to keep New York at a distance. In recent years, tech's favorite banker was Morgan Stanley 's Michael Grimes, who lives in Silicon Valley.

Grimes had originally been hired at Morgan Stanley's Menlo Park, Calif., outpost by Frank Quattrone, the banker face of the first Internet IPO boom and bust. By the time Mark Zuckerberg came along New York was almost seen as unnecessary.

Zuckerbeg famously showed up to Facebook's New York road show wearing a hoodie and didn't even bother to go to Manhattan for Facebook's IPO, ringing in trading on Nasdaq from Menlo Park.


But one of the more meaningful consequences of the Facebook IPO debacle is that New York has asserted its influence when it comes to tech IPOs. Goldman Sachs' Anthony Noto, the investment banker in charge of Twitter's IPO, is based in New York.

The co-head of Goldman's global telecommunications, media and technology investment banking group has reportedly avoided the scene in Silicon Valley and used an understated approach.

Grimes is so interwoven in the fabric of Silicon Valley that Facebook star COO Sheryl Sandberg felt she had to recuse herself from the Facebook IPO process because of her close friendship with Grimes, which had been going on since she was an executive at Google.

Ahem. "Reality check." Wall Street is, at root, an excrescence of the City of London, specific networks of money and power are far older than the United States and after the Civil War, Money Power reasserted itself and built a concealed European money system in the US.

It is this hidden system that continues to hold sway today. Silicon Valley when seen from the context of THIS paradigm is a nest of glorified clerics, scribbling software instead of composing balance sheets.

The real power in the world has as much contempt for these "innovations" as it does for athletic achievement, great musical or literary accomplishments or even important political figures.

For them, finance itself is merely a means to an end, a way of enriching their coffers at the expense of those who crowd the so-called "public markets" and then fall out bruised and bloody when the mania subsides.

We are in the midst of the creation of yet another Wall Street Party, and in this incarnation of The Daily Bell we have been relentlessly exposing what is to come and how it is being created.

The technology mania we are witnessing today is just the first wave. As we've shown in numerous articles now, the NEXT wave will feature climate change companies, green enterprises and alternative fuel providers.

But the idea that all this is unorchestrated or that there are somehow great power struggles between factions of "American exceptionalism" – that US capitalism is a kind of brawl or free-for-all – simply isn't true.

This is all part of an elaborate dance with a preordained conclusion. First, the mania will doubtless take place if we have correctly analyzed what is now occurring and then, eventually, there will be a vicious reversal intended to usher in a more concentrated and global finance.

Where the US financial industry's "balance of power" shifts to in the meantime is of little import. Those orchestrating what is to come regard these people, even the most successful, as the "help." When you are worth tens of trillions and control central banking around the world, billions are a kind of pocket change.

Keep realism in sight; understand how capital actually flows and who is organizing it. Only then may you benefit and even prosper from what is yet to come.

It has nothing to do with a "balance of power" and everything to do with Money Power. We will continue to explain its application and evolution as we go. One way or another, we are at the beginning of something big.

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