Plutonomy: Buying Luxury, Explaining Global Imbalances

14 results back to index


pages: 353 words: 81,436

Buying Time: The Delayed Crisis of Democratic Capitalism by Wolfgang Streeck

activist fund / activist shareholder / activist investor, banking crisis, basic income, Bretton Woods, business cycle, capital controls, Carmen Reinhart, central bank independence, collective bargaining, corporate governance, creative destruction, David Graeber, deindustrialization, Deng Xiaoping, Eugene Fama: efficient market hypothesis, financial deregulation, financial repression, fixed income, full employment, Gini coefficient, Growth in a Time of Debt, income inequality, Joseph Schumpeter, Kenneth Rogoff, Kickstarter, knowledge economy, labour market flexibility, labour mobility, late capitalism, liberal capitalism, means of production, moral hazard, Myron Scholes, Occupy movement, open borders, open economy, Plutonomy: Buying Luxury, Explaining Global Imbalances, profit maximization, risk tolerance, shareholder value, too big to fail, union organizing, winner-take-all economy, Wolfgang Streeck

Shefrin, Beyond Greed and Fear: Understanding Behavioral Finance and the Psychology of Investing, Oxford: Oxford University Press, 2002). 12 The Citibank research department developed this as a positive concept, to dispel fears among the select customers of the bank’s private banking department that their future prosperity would depend, as in the Keynesian world, on the material welfare of the broad masses (Citigroup Research, Plutonomy: Buying Luxury, Explaining Global Imbalances, 16 October 2005; Citigroup Research, Revisiting Plutonomy: The Rich Getting Richer, 5 March 2006). 13 Against the advice of any number of people who claimed to know better, Germany had defended its industrial base and moved only slowly, in the 1980s and 1990s, in the direction of an American or British-style ‘service society’. After 2008 it was therefore able to continue exporting goods such as luxury cars and machinery that no one else could offer at the same quality level, profiting from the high growth-rates in China and the ever more unequal distribution of income in the crisis-torn United States.

Bundesministerium des Innern, Jahresbericht der Bundesregierung zum Stand der Deutschen Einheit 2012, Berlin: Bundesministerium des Innern, 2012. Canedo, Eduardo, The Rise of the Deregulation Movement in Modern America, 1957–1980, New York: Columbia University Press, 2008. Castles, Francis G. et al., ‘Introduction’, in Francis G. Castles et al. (eds), The Oxford Handbook of the Welfare State, Oxford: Oxford University Press, 2010, pp. 1–15. Citigroup Research, Plutonomy: Buying Luxury, Explaining Global Imbalances, 16 October 2005. ———. Revisiting Plutonomy: The Rich Getting Richer, 5 March 2006. Citrin, Jack, ‘Do People Want Something for Nothing? Public Opinion on Taxes and Government Spending’, National Tax Journal, vol. 32/2, 1979, supplement, pp. 113–29. ———. ‘Proposition 13 and the Transformation of California Government’, The California Journal of Politics and Policy, vol. 1/1, 2009, pp. 1–9.


pages: 75 words: 22,220

Occupy by Noam Chomsky

corporate governance, corporate personhood, deindustrialization, Howard Zinn, income inequality, invisible hand, Martin Wolf, Nate Silver, Occupy movement, Plutonomy: Buying Luxury, Explaining Global Imbalances, precariat, Ralph Nader, Ronald Reagan, too big to fail, union organizing

Take, for example, Citigroup. For decades, Citigroup has been one of the most corrupt of the major investment banking corporations, repeatedly bailed out by the taxpayer, starting in the early Reagan years and now once again. I won’t run through the corruption—you probably already know about it—but it’s pretty astonishing. In 2005, Citigroup came out with a brochure for investors called “Plutonomy: Buying Luxury, Explaining Global Imbalances.” The brochure urged investors to put money into a “plutonomy index.” The memo says “the World is dividing into two blocs - the Plutonomy and the rest.” Plutonomy refers to the rich, those who buy luxury goods and so on, and that’s where the action is. They said that their plutonomy index was way out-performing the stock market, so people should put money into it. As for the rest, we send ’em adrift.


pages: 481 words: 120,693

Plutocrats: The Rise of the New Global Super-Rich and the Fall of Everyone Else by Chrystia Freeland

activist fund / activist shareholder / activist investor, Albert Einstein, algorithmic trading, assortative mating, banking crisis, barriers to entry, Basel III, battle of ideas, Bernie Madoff, Big bang: deregulation of the City of London, Black Swan, Boris Johnson, Branko Milanovic, Bretton Woods, BRICs, business climate, call centre, carried interest, Cass Sunstein, Clayton Christensen, collapse of Lehman Brothers, commoditize, conceptual framework, corporate governance, creative destruction, credit crunch, Credit Default Swap, crony capitalism, Deng Xiaoping, disruptive innovation, don't be evil, double helix, energy security, estate planning, experimental subject, financial deregulation, financial innovation, Flash crash, Frank Gehry, Gini coefficient, global village, Goldman Sachs: Vampire Squid, Gordon Gekko, Guggenheim Bilbao, haute couture, high net worth, income inequality, invention of the steam engine, job automation, John Markoff, joint-stock company, Joseph Schumpeter, knowledge economy, knowledge worker, liberation theology, light touch regulation, linear programming, London Whale, low skilled workers, manufacturing employment, Mark Zuckerberg, Martin Wolf, Mikhail Gorbachev, Moneyball by Michael Lewis explains big data, NetJets, new economy, Occupy movement, open economy, Peter Thiel, place-making, plutocrats, Plutocrats, Plutonomy: Buying Luxury, Explaining Global Imbalances, postindustrial economy, Potemkin village, profit motive, purchasing power parity, race to the bottom, rent-seeking, Rod Stewart played at Stephen Schwarzman birthday party, Ronald Reagan, self-driving car, short selling, Silicon Valley, Silicon Valley startup, Simon Kuznets, Solar eclipse in 1919, sovereign wealth fund, starchitect, stem cell, Steve Jobs, the new new thing, The Spirit Level, The Wealth of Nations by Adam Smith, Tony Hsieh, too big to fail, trade route, trickle-down economics, Tyler Cowen: Great Stagnation, wage slave, Washington Consensus, winner-take-all economy, zero-sum game

In 2005, Bill Gates was worth Robert Reich, Supercapitalism: The Transformation of Business, Democracy, and Everyday Life (Knopf, 2007), p. 113. A 2011 OECD report showed “Divided We Stand: Why Inequality Keeps Rising,” OECD report, December 2011. “I’ve never understood in my life” CF interview with Naguib Sawiris, November 18, 2011. “the World is dividing into two blocs” Ajay Kapur, Niall Macleod, and Narendra Singh, “Plutonomy: Buying Luxury, Explaining Global Imbalances,” Citigroup Global Markets Equity Strategy report, October 16, 2005. “The U.S. stock markets and the U.S. economy” James Freeman, “The Bullish Case for the U.S. Economy,” Wall Street Journal, June 4, 2011. “very distorted” Alan Greenspan, interview on NBC’s Meet the Press, August 1, 2010. “consumer hourglass theory” Ellen Byron, “As Middle Class Shrinks, P&G Aims High and Low,” Wall Street Journal, September 12, 2011.

“These failed firms” Clayton Christensen, The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail (Harvard Business School Press, 1997), p. xv. “vast, silent, connected” W. Brian Arthur, “The Second Economy,” McKinsey Quarterly, October 2011. Facebook’s Mark Zuckerberg Zuckerberg attended Ardsley High School for two years before transferring to Phillips Exeter Academy. “Dopamine, a pleasure-inducing” Ajay Kapur, Niall Macleod, and Narendra Singh, “Plutonomy: Buying Luxury, Explaining Global Imbalances,” Citigroup Global Markets Equity Strategy report, October 16, 2005. “I recognize that sometimes survival requires a positive effort” CF interviews with George Soros, May 2009 and December 2008. “My theory of bubbles was a translation” CF interview with George Soros, May 2009. “That experience has allowed him to see through artifice” CF interview with Jonathan Soros, July 14, 2009.


pages: 256 words: 15,765

The New Elite: Inside the Minds of the Truly Wealthy by Dr. Jim Taylor

British Empire, business cycle, call centre, dark matter, Donald Trump, estate planning, full employment, glass ceiling, income inequality, Jeff Bezos, longitudinal study, Louis Pasteur, Maui Hawaii, McMansion, means of production, passive income, performance metric, plutocrats, Plutocrats, Plutonomy: Buying Luxury, Explaining Global Imbalances, Ronald Reagan, stealth mode startup, Steve Jobs, Thorstein Veblen, trickle-down economics, women in the workforce, zero-sum game

In both cases, it is largely about being guided by authenticity, relevance, and storytelling. In both economies, effective marketing is about meeting people’s unmet needs and developing communications that resonate with their attitudes. As we’ve seen, the attitudes of the wealthy are more likely those of mainstream Americans than one might have anticipated. Notes 1. Ajay Kapur, Niall Macleod, and Narendra Singh, ‘‘Plutonomy: Buying Luxury, Explaining Global Imbalances,’’ research report, Citigroup Global Markets, http://www.billcara.com/archives/ Citi%20Oct%2016,%202005%20Plutonomy.pdf (accessed April 14, 2008). 2. Daniel Gross, ‘‘Don’t Hate Them Because They’re Rich: The Trickle-Down Effect of Ridiculous, Ostentatious Wealth,’’ New York magazine, April 11, 2005, http://nymag.com/nymetro/news/ culture/features/11721 (accessed April 14, 2008). 3.


pages: 223 words: 10,010

The Cost of Inequality: Why Economic Equality Is Essential for Recovery by Stewart Lansley

"Robert Solow", banking crisis, Basel III, Big bang: deregulation of the City of London, Bonfire of the Vanities, borderless world, Branko Milanovic, Bretton Woods, British Empire, business cycle, business process, call centre, capital controls, collective bargaining, corporate governance, corporate raider, correlation does not imply causation, creative destruction, credit crunch, Credit Default Swap, crony capitalism, David Ricardo: comparative advantage, deindustrialization, Edward Glaeser, Everybody Ought to Be Rich, falling living standards, financial deregulation, financial innovation, Financial Instability Hypothesis, floating exchange rates, full employment, Goldman Sachs: Vampire Squid, high net worth, hiring and firing, Hyman Minsky, income inequality, James Dyson, Jeff Bezos, job automation, John Meriwether, Joseph Schumpeter, Kenneth Rogoff, knowledge economy, laissez-faire capitalism, light touch regulation, Long Term Capital Management, low skilled workers, manufacturing employment, market bubble, Martin Wolf, mittelstand, mobile money, Mont Pelerin Society, Myron Scholes, new economy, Nick Leeson, North Sea oil, Northern Rock, offshore financial centre, oil shock, plutocrats, Plutocrats, Plutonomy: Buying Luxury, Explaining Global Imbalances, Right to Buy, rising living standards, Robert Shiller, Robert Shiller, Ronald Reagan, savings glut, shareholder value, The Great Moderation, The Spirit Level, The Wealth of Nations by Adam Smith, Thomas Malthus, too big to fail, Tyler Cowen: Great Stagnation, Washington Consensus, Winter of Discontent, working-age population

, The Economist, 29 August, 2010. 245 Glaeser, op. cit. 246 Atkinson and Morelli, op. cit. p 57. 247 JP Fitoussi and F Saraceno, op. cit. 248 M Iacoviello, ‘Household Debt and Income Inequality, 1963-2003’, Journal of Money, Credit and Banking, August, 2008. 249 Kumhof and Rancière, op. cit. p 3. 250 T Cowen, ‘The Inequality That Matters’, The American Interest Online, Jan-Feb, 2011. 251 Moss, Harvard Magazine, op. cit. 252 Ajay Kapur et al, ‘The Global Investigator: Plutonomy: Buying Luxury, Explaining Global Imbalances’, Citigroup Equity Research, October 14, 2005. 253 RN Goodwin, ‘The Selling of Government’, Los Angeles Times, 30 January 1997. 254 J Stiglitz, The Roaring Nineties, Allen Lane, 2003. 255 K Phillips, ‘Too much wealth, too little democracy.’ Challenge, September, 2002. 256 Guardian, 19.11.03. 257 Time, 26 February, 2011. 258 H Williams, Britain’s Power Elites, Constable, 2006, p 164. 259 N Matthiason & Y Bessaoud, Growth in City Donations to the Conservative Party, Bureau for Investigative Journalism, February 2011. 260 CRESC, 2009, op. cit. p 23. 261 G Soros, ‘The Crisis and What to do About It’, New York Review of Books, 4 December, 2008. 7 LIVING ON BORROWED TIME One evening in late 2004, a couple who had been living in a small council house in Bradford for ten years got an unexpected knock on the door from a mortgage salesman.


Who Rules the World? by Noam Chomsky

"Robert Solow", Albert Einstein, anti-communist, Ayatollah Khomeini, Berlin Wall, Bretton Woods, British Empire, capital controls, corporate governance, corporate personhood, cuban missile crisis, deindustrialization, Donald Trump, Doomsday Clock, Edward Snowden, en.wikipedia.org, facts on the ground, failed state, Fall of the Berlin Wall, Howard Zinn, illegal immigration, Intergovernmental Panel on Climate Change (IPCC), invisible hand, liberation theology, Malacca Straits, Martin Wolf, Mikhail Gorbachev, Monroe Doctrine, Nelson Mandela, nuclear winter, Occupy movement, oil shale / tar sands, one-state solution, Plutonomy: Buying Luxury, Explaining Global Imbalances, precariat, Ralph Waldo Emerson, Ronald Reagan, South China Sea, Stanislav Petrov, structural adjustment programs, The Wealth of Nations by Adam Smith, Thorstein Veblen, too big to fail, trade route, union organizing, uranium enrichment, wage slave, WikiLeaks, working-age population

Thomas Ferguson, “Best Buy Targets are Stopping a Debt Deal,” Financial Times (London), 26 July 2011. 26. Robert Pear, “New Jockeying in Congress for Next Phase in Budget Fight,” New York Times, 3 August 2011. 27. Stephanie Clifford, “Even Marked Up, Luxury Goods Fly Off Shelves,” New York Times, 3 August 2011. 28. Louis Uchitelle, “Job Insecurity of Workers Is a Big Factor in Fed Policy,” New York Times, 27 February 1997. 29. Ajay Kapur, “Plutonomy: Buying Luxury, Explaining Global Imbalances,” 16 October 2005, as found at http://delong.typepad.com/plutonomy-1.pdf. 30. Noam Chomsky, Making the Future: Occupations, Interventions, Empire and Resistance (San Francisco: City Lights, 2012), 289. 6. IS AMERICA OVER?   1. Elizabeth Becker, “Kissinger Tapes Describe Crises, War and Stark Photos of Abuse,” New York Times, 27 May 2004.   2. John F. Kennedy, “The President and the Press,” (address before the American Newspaper Publishers Society, Waldorf-Astoria Hotel, New York, NY, 27 April 1961) http://www.jfklibrary.org/Research/Research-Aids/JFK-Speeches/American-Newspaper-Publishers-Association_19610427.aspx.   3.


pages: 367 words: 108,689

Broke: How to Survive the Middle Class Crisis by David Boyle

anti-communist, banking crisis, Berlin Wall, Big bang: deregulation of the City of London, Bonfire of the Vanities, bonus culture, call centre, collateralized debt obligation, corporate raider, Credit Default Swap, credit default swaps / collateralized debt obligations, deindustrialization, delayed gratification, Desert Island Discs, Eugene Fama: efficient market hypothesis, eurozone crisis, Fall of the Berlin Wall, financial deregulation, financial independence, financial innovation, financial intermediation, Francis Fukuyama: the end of history, Frederick Winslow Taylor, housing crisis, income inequality, Jane Jacobs, job satisfaction, Kickstarter, knowledge economy, knowledge worker, market fundamentalism, Martin Wolf, mega-rich, mortgage debt, Neil Kinnock, Nelson Mandela, new economy, Nick Leeson, North Sea oil, Northern Rock, Occupy movement, off grid, offshore financial centre, pension reform, pensions crisis, Plutonomy: Buying Luxury, Explaining Global Imbalances, Ponzi scheme, positional goods, precariat, quantitative easing, school choice, Slavoj Žižek, social intelligence, too big to fail, trickle-down economics, Vanguard fund, Walter Mischel, wealth creators, Winter of Discontent, working poor

[20] David Willetts, The Pinch (London, Atlantic Books, 2010), xv. [21] Willetts, 81. [22] New York Post, 11 Jun. 2009. [23] Francis Fukuyama, ‘The Future of History: Can liberal democracy survive the decline of the middle class?’, Foreign Affairs, Jan./Feb. 2012. [24] William K. Carroll, The Making of a Transnational Capitalist Class: Corporate power in the 21st century (London, Zed Books, 2010). [25] Citigroup, ‘Plutonomy: Buying luxury, explaining global imbalances’, 15 Oct. 2005, quoted in Edward Fulbrook (2012), ‘The political economy of bubbles’, Real World Economics Review, no. 59. [26] Ferdinand Mount, ‘The new few or a very British oligarchy’, Guardian, 24 Apr. 2012. [27] Adam Raphael, Ultimate Risk (London, Bantam Press, 1994), 192. [28] Raphael, 97. [29] Raphael, 13. [30] Raphael, 211. [31] Raymond Williams, The City and the Country (Oxford, Oxford University Press, 1975), 9f


pages: 364 words: 112,681

Moneyland: Why Thieves and Crooks Now Rule the World and How to Take It Back by Oliver Bullough

banking crisis, Bernie Madoff, bitcoin, blood diamonds, Bretton Woods, BRICs, British Empire, capital controls, central bank independence, corporate governance, cryptocurrency, cuban missile crisis, dark matter, diversification, Donald Trump, energy security, failed state, Flash crash, Francis Fukuyama: the end of history, full employment, high net worth, if you see hoof prints, think horses—not zebras, income inequality, joint-stock company, liberal capitalism, liberal world order, mass immigration, medical malpractice, offshore financial centre, plutocrats, Plutocrats, Plutonomy: Buying Luxury, Explaining Global Imbalances, rent-seeking, Richard Feynman, risk tolerance, Sloane Ranger, sovereign wealth fund, WikiLeaks

At the time, Kapur worked for Citigroup as director of Global Strategy Research, and his job was to find assets for his clients to invest in, which meant it was important for him to understand what was going on. He and his colleagues looked into the situation, and concluded that it was too early to be concerned. And then they thought some more, and read some more, and inspiration came: which they revealed to the world in an October 2005 report entitled ‘Plutonomy, Buying Luxury, Explaining Global Imbalances’. The footnotes to the report are packed full of works by academics who were then or who have since become heroes to the political left – particularly Thomas Piketty and Emmanuel Saez – but the bank’s analysts brought them into the service of the very wealthy. The report’s message was a simple one: the rich are getting richer, and that can make you rich. Kapur’s insight was that, if the majority of a country is owned by very few people, it doesn’t necessarily matter what the oil price does.


pages: 424 words: 115,035

How Will Capitalism End? by Wolfgang Streeck

accounting loophole / creative accounting, Airbnb, basic income, Ben Bernanke: helicopter money, Bretton Woods, business cycle, capital controls, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, central bank independence, centre right, Clayton Christensen, collective bargaining, conceptual framework, corporate governance, creative destruction, credit crunch, David Brooks, David Graeber, debt deflation, deglobalization, deindustrialization, disruptive innovation, en.wikipedia.org, eurozone crisis, failed state, financial deregulation, financial innovation, first-past-the-post, fixed income, full employment, Gini coefficient, global reserve currency, Google Glasses, haute cuisine, income inequality, information asymmetry, invisible hand, John Maynard Keynes: Economic Possibilities for our Grandchildren, Kenneth Rogoff, labour market flexibility, labour mobility, late capitalism, liberal capitalism, market bubble, means of production, moral hazard, North Sea oil, offshore financial centre, open borders, pension reform, plutocrats, Plutocrats, Plutonomy: Buying Luxury, Explaining Global Imbalances, post-industrial society, private sector deleveraging, profit maximization, profit motive, quantitative easing, reserve currency, rising living standards, Robert Gordon, savings glut, secular stagnation, shareholder value, sharing economy, sovereign wealth fund, The Future of Employment, The Wealth of Nations by Adam Smith, Thorstein Veblen, too big to fail, transaction costs, Uber for X, upwardly mobile, Vilfredo Pareto, winner-take-all economy, Wolfgang Streeck

Demand from below would make it attractive for the ‘savings’ of the rich to be invested in services and manufacturing. See, in this context, the call late last year by the director-general of the Confederation of British Industry, which represents manufacturing firms, for members to pay their workers better, as too many people are stuck in low-pay employment. See ‘Companies urged to spread benefits widely’, Financial Times, 30 December 2013. 38Citigroup Research, ‘Plutonomy: Buying Luxury, Explaining Global Imbalances’, 16 October 2005; Citigroup Research, ‘Revisiting Plutonomy: The Rich Getting Richer’, 5 March 2006. 39Nota bene that capitalism is about profit, not about productivity. While the two may sometimes go together, they are likely to part company when economic growth begins to require a disproportionate expansion of the public domain, as envisaged early on in ‘Wagner’s law’: Adolph Wagner, Grundlegung der politischen Oekonomie, 3rd edn, Leipzig: C.


Hopes and Prospects by Noam Chomsky

"Robert Solow", Albert Einstein, banking crisis, Berlin Wall, Bretton Woods, British Empire, capital controls, colonial rule, corporate personhood, Credit Default Swap, cuban missile crisis, David Ricardo: comparative advantage, deskilling, en.wikipedia.org, energy security, failed state, Fall of the Berlin Wall, financial deregulation, Firefox, Howard Zinn, Hyman Minsky, invisible hand, liberation theology, market fundamentalism, Martin Wolf, Mikhail Gorbachev, Monroe Doctrine, moral hazard, Nelson Mandela, new economy, nuremberg principles, one-state solution, open borders, Plutonomy: Buying Luxury, Explaining Global Imbalances, Ralph Waldo Emerson, RAND corporation, Ronald Reagan, structural adjustment programs, The Wealth of Nations by Adam Smith, too big to fail, total factor productivity, trade liberalization, uranium enrichment, Washington Consensus

See Baker, Plunder and Blunder, for succinct review. Concentration, Kansas City Federal Reserve president Thomas Hoenig, August 6, 2009, cited by Zach Carter, “A Master of Disaster,” Nation, January 4, 2010, http://www.thenation.com/doc/20100104/carter. 25. Pete Engardio, “Can the Future Be Built in America?” Business Week, September 21, 2009. 26. Citigroup, “Equity Strategy, Plutonomy: Buying Luxury, Explaining Global Imbalances,” October 16, 2005; “Equity Strategy, Revisiting Plutonomy: The Rich Getting Richer,” March 5, 2006. “Why Service Stinks,” Business Week, October 23, 2000. 27. Wall Street Journal, June 15, 2009. 28. Thomas Catan and David Gauthier-Villars, Wall Street Journal, May 29, 2009. 29. For discussion and illustrations of the state-corporate policies that have systematically undermined the country’s industrial base and technological edge, favoring global investors over U.S. manufacturers, see the special report, “Why Nothing Is Made in the USA Anymore,” American Prospect, January 2010. 30.


pages: 471 words: 127,852

Londongrad: From Russia With Cash; The Inside Story of the Oligarchs by Mark Hollingsworth, Stewart Lansley

Berlin Wall, Big bang: deregulation of the City of London, Bob Geldof, business intelligence, corporate governance, corporate raider, credit crunch, crony capitalism, Donald Trump, energy security, Etonian, F. W. de Klerk, income inequality, kremlinology, mass immigration, mega-rich, Mikhail Gorbachev, offshore financial centre, paper trading, plutocrats, Plutocrats, Plutonomy: Buying Luxury, Explaining Global Imbalances, rent-seeking, Ronald Reagan, Skype, Sloane Ranger

Sekules, ‘The Best Town to Make an Upper Lip Stiff’, New York Times, 7 February 2007. 10Editorial, Spear’s Wealth Management Survey, Winter 2006/7. 11Rosie Cox, The Servant Problem, Tauris, 2006. 12Financial Times, 27 October 2007. 13See, for example, Doreen Massey, World City, Polity, 2007, chapter 2; Chris Hamnett, Unequal City: London in the Global Arena, Routledge, 2003; Greater London Authority, London Divided: Income Inequality and Poverty in the Capital, London, 2003. 14Evening Standard, 6 July 2007. 15Simon Parker and David Goodhart, ‘A City of Capital’, Prospect, April 2007. 16Ajay Kapur et al., ‘The Global Investigator. Plutonomy: Buying Luxury, Explaining Global Imbalances’, Citigroup Equity Research, 14 October 2005. 17Luke Harding, Guardian, 14 October 2008. 18See note 1. 19Guardian, 25 October 2008. 20Andrew E. Kramer, New York Times, 18 October 2008. INDEX The pagination of this electronic edition does not match the edition from which it was created. To locate a specific passage, please use the search feature of your e-book reader. 9/11 terrorist attacks (2001) 17, 288, 337 Aberuchill Castle, Perthshire 148 ABK 43 Abraham, Spencer 230 Abramovich, Anna 43 Abramovich, Arkady 41 Abramovich, Irina 41, 122, 123, 127, 128, 129, 152, 159, 162, 163, 199, 200, 201, 348 Abramovich, Roman 20, 81, 115-16, 133, 204, 323, 342, 362 appearance 43, 117 appetite for conspicuous consumption 16 art collecting 367 Berezovsky as his bitter enemy 15, 45, 315-16 and children’s education 163-4, 356 and Daria Zhukova 159, 163, 180, 189, 199-203 as a dollar billionaire 363 establishes ABK 43 expensive take-away 26-7 the ‘family’ 51 fortune seriously depleted 364 friendship with Deripaska 55, 319 governor of Chukotka 159, 232, 356 initial friendship with Berezovsky 43 jet-set image 117-18 jets, yachts and cars 151-6 legal writs served on him 127-8 marriages 42-3, 196 meeting with Berezovsky and Patarkatsishvili 91-3 orphaned, aged three 41 owner of Chelsea Football Club 15, 125-6, 127, 137, 158, 160, 274, 315 personality 41, 43, 121-2 property purchase 115, 117, 122-3, 124-5, 128-30, 142 and Putin 159, 163, 343 security 130-31, 162, 163 as a shadowy figure 123-4 and Sibneft 41, 44, 96-7, 98, 99, 100, 102, 115, 126, 157, 160 source of his oil fortune 15 Abu Dhabi 98, 99 Aeroflot 39-40, 43, 77-80, 87, 90, 91, 103, 118, 157, 173, 263, 365 Aga Khan 122 Ageyev, Nicholas 170 Aguilera, Christina 202 AIG 362-3 Air Accidents Investigation Branch (AAIB) 7, 8, 9 Air Force One 152 Al Fayed, Mohamed 163, 203 al-Qaeda 288 Al-Tajir, Mahdi 94 Alcoa 331 Aleksandrovna, Lyudmila 69, 70 Alexandrovka (Berezovsky’s dacha) 53, 90 Alexandrovna, Anna 264 Alexanyan, Vasily 11 Alfa 138 All Saints Church, Easton, Isle of Portland 11 All-Russian Automobile Alliance 39 Alloro restaurant, London 109 Allen, Paul 153 Alston and Bird 335, 336 Althorp, Northamptonshire 171 Alwaleed, Prince 203 Amsterdam, Robert 234, 242, 274 Andava 40, 78, 79 Annabel’s nightclub, London 109, 172 Apatit chemical company 231 APCO Worldwide 222, 223 Aria, Semyon 264 Aristotle 82 Politics 31 ARK 369 Arsenal Football Club 194, 348, 364 art market crash (1990-91) 190 Art Newspaper 190 Arthur Andersen accountancy firm 47 Ascot 166 Royal 169 Ascot, Berkshire 143 Asher, Abigail 190 Asprey jewellers 26 Assad family 358 Athan, Gina 98 Atkin, Tim 176 Atticus Capital 330, 332 Audit Chamber 160, 233 Aven, Petr 43, 49, 138, 193 Avital, Colette 247 Avtobank 157 AvtoVaz factory, Togliatti 37, 38, 39, 103, 342 Axis Ltd 227 Aylesford (estate agent) 20, 134 Aziz, Prince Sultan bin Abdul 153 Backstein, Joseph 185, 195 Bacon, Francis 187 Triptych 201 Badri see Patarkatsishvili, Arkady Bahamas 219 Baikal 233 Bailey, Liam 140, 141, 367 Bakeham House, Wentworth Park, Surrey 110 Baker, Tatiana 135, 137 Baku, Azerbaijan 26 Bank Menatep collapses in the 1998 financial crash 221 controls Yukos 5 Curtis and 5, 6, 94, 216 first use of word ‘oligarch’ in Russia 31 handles state money 47 a highly controversial Russian company 6 and ISC Global 237-8 money laundering allegations 214-15 set up by Khodorkovsky 46 success of 46-7 whistleblower 219-20 and Yukos 5, 48, 215, 218 Bank of Moscow 118 Barclays bank 40 Barker, Gregory 162-3 Barr, Graham 276 Barvikha Hills, Moscow 170 Basayev, Shamil 115 Basel Art Fair, Switzerland 189 Basic Element 325 Bassey, Dame Shirley 203 Battersea heliport, London 1, 137, 152, 318 Baturina, Yelena 169, 192, 358 BBC 30, 293, 297 Newsnight 258, 266, 298, 305 Question Time (BBC1) 259 Radio 4 296 Beauchamp Estates, Mayfair 131, 134, 354 Becharova, Galina 39 Beckett, Jonathan 352 Beechwood estate, Hampstead 358 Beijing 321 Belgrave Square, London 136, 327 Bell, Tim (now Lord) 50, 111, 114, 250, 256-61, 269, 276, 279, 296, 297, 298 Bell Pottinger 250, 278-9, 281, 297 Belova, Natalya 359 Benda, Alain 331 Berezovska, Anastasia 39 Berezovska, Ekaterina (Katya) 37, 39, 104, 105, 106, 112 Berezovska, Elizaveta 37, 39 Berezovska, Galina 110-11 Berezovsky, Artem 39 Berezovsky, Boris 66, 133, 151, 204, 323, 362 Aeroflot fraud case 77-80, 87 appearance 254 his assassination planned 288-9 at Curtis’s funeral 11, 12 attack on him (1994) 131 and the automobile industry 37-9 benefits from ‘loans for shares’ deal 35 birth (1946) 35 bitter enemy of Abramovich 15, 45, 315-17 brazen lifestyle 31 buys Clocher de la Garoupe 89 a client of Stephen Curtis 4, 6, 95, 235, 236 Confederation of Independent States 54 defends his activities 16, 60-61, 78-9, 80-81 dismissed from Security Council 54 and education 36, 165, 255 extensive business empire 39 extradition case 16, 103, 106, 260-63, 280 the ‘family’ 51 friendship with Lugovoi 306 friendship with Yeltsin 40 a fugitive from Russia 90-91 ‘Grey Cardinal’ 31 at the height of his power 52-3 interest in airlines 39-40 and ISC Global 237 Jewish background 35-6 and Litvinenko 288-93, 296, 298, 299, 306, 309, 310 marriages 37, 39, 196 media empire 196, 275 meets Curtis 94 member of the Russian Academy of Sciences 36-7 new name (Platon Yelenin) 276-7 and Oligarkh 30 and ORT 40-41, 83, 85-6, 87, 92-3, 95-6 personality 15, 36, 254, 255 political asylum request 260-61 property purchases 110-13 and Putin 66, 67, 71-2, 73, 76, 81-2, 85-7, 90, 91-3, 108, 253-4, 256, 258, 259, 260, 261, 268, 271, 280, 281, 283, 284, 291, 292, 296, 298, 301, 306 relationship with Patarkatsishvili 83, 84, 277 St George’s Hill 144 search for social acceptance 113-14 and security 107-9, 111 severely restricted movements 276 and Sibneft 41, 44, 96-8, 99, 102, 104, 126 social life 109-10 SPVs 103-4 takes risks with his fortune 106-7 works to destabilise Russia 276, 280-81 and Zakayev 269 Berlin 22 Berlin, Isaiah 22 Berlin Wall, collapse of (1989) 70 Bermuda 18 Bernardoni-Belolipskaia, Vladlena 168 Berry Bros & Rudd wine merchant, St James’s, London 24 Beslan school hostage crisis 308 Bili SA 101 Billington, James H. 224 Birt, Lord 257 Black Treasury 50 Blackhurst, Rob 225 Blair, Tony 225, 256, 283, 303, 330, 341, 346 Blanc, Raymond 162 Blavatnik, Leonid 112, 133, 134, 170, 203, 204 Blenheim Palace 279 Blohm & Voss 155 Bloom, Orlando 171 Bloomberg 363, 364, 367 Blunkett, David 262 Boateng, Ozwald 169 Boguslavsky, Leonid 36 Bolshoi Ballet 331 Bonham-Carter, Graham 321 Bonham-Carter, Helena 321 Bonhams fine art auctioneers 192 Boscombe, Dorset 3 Boubnova, Sophia 101 Boujis nightclub, London 204 Bournemouth Airport 2, 7, 9 Bournemouth Town Hall 9 Bow Street Magistrates Court 250, 261, 268 Bowack, John 139 Bowering, Professor Bill 250 Box Hill school, Mickleham, Surrey 166 BP 225, 245 Brackley and Towcester Advertiser 146-7 Bradley, Bill 224 Brando, Marlon 110 Branson, Sir Richard 133 Braynin, Felix 50 Brenton, Sir Anthony 283 Brezhnev, Leonid 37, 52 Britain 21st-century influx of Russians 23 arrival of middle-class, affluent Russians 13 Kremlin complaint about Britain’s Russophobia 281 a long-term haven for Russian exiles and dissidents 21-2 number of Russian residents in 22 refuses extradition attempts by Russian authorities 16 rules for ‘non-domiciles’ 18 Russian oil and gas supplies 303 British Airways 165, 257, 302, 338 British Army 107 British Embassy, Moscow 22 British Gas 58 British Museum, London 21 British Telecom 58 British Virgin Islands 19, 124, 157, 212, 219, 236, 291, 320 Broadlands, Ascot 278 Browder, Bill 47, 217, 218, 243, 246, 340-41 Hermitage Capital Management 209 Brown, Gordon 226, 303, 333, 334, 335, 360 Brown, Nigel 1, 6, 9-10, 238, 247, 248, 265 Brunei, Sultan of 133 BST Link 249 Buchanan, Andrew 141 Buck, Bruce 348 Buckingham Palace, London 358 Buckingham Suite apartment, Belgrave Square, London 112-13 Buckley, Tork 155 bugging 238-9, 264 Bukosky, Vladimir 288 Bullingdon drinking club, Oxford University 332, 334 Bullock, Janna 191 Burberry, New Bond Street, London 24 Burganov, Ranil 210, 211, 212, 248 Burgess 352 Burton, Ian 250 Busch, Gary 293, 309 Bush, George W. 224, 259 Bush, Laura 224 BusinessWeek 245 Buttrke prison 231 Byblos des Neiges, Courchevel 205 Cadogan Square, London 136 Café Pushkin, Moscow 330 Cameron, David 335 Campbell, Naomi 169, 170, 171, 189, 205 Candy, Christian 113 Candy and Candy 25, 107, 112, 113, 141, 348 Candyscape (yacht) 113 Cannes Film Festival 264 Cantinetta Antinori restaurant, Moscow 331 Cap d’Antibes 203, 264 Capital Group 169-70 Carlton Park Tower Hotel, London 99 Carlucci, Frank 224 Carlyle Group 224 Carnegie, Andrew 147 Caroline Terrace, Belgravia 138 Cartier 177, 369 Cartier International Day, Guards Polo Club, Windsor Great Park 168 Cash, William 16-17, 189, 192 Catherine the Great 225 Caves du Roy, Courchevel 205 Cayman Islands 18, 216 Central Bank 47, 166, 217, 363-4 Centre for Contemporary Culture (the Garage), Moscow 202 Centre for Scientific and Technical Youth 46 Chalker, Baroness 276 Champions League 235 Chanel, New Bond Street, London 95 Channel 4 News 297 Channel One 40, 50, 83, 85, 91-2 Channon, Henry ‘Chips’ 320, 321 Chaplin, Charlie 203 Charles, HRH The Prince of Wales 223 Charterhouse, near Godalming, Surrey 164 Château de la Croix, Cap d’Antibes 91, 129 Château de la Garoupe 89-90, 91 ‘Château Rothschild’ 332-3 Chatham House, St James’s Square 258 Chechnya 76, 208, 259, 268, 269, 286, 293, 308 gangs 38 rebels 115, 268 Chechnya conflict 52-3 first Chechen war (1994-6) 53, 268 second Chechen war (1999-2009) 72-3, 81, 269, 292 ‘Chekists’ 71, 74 Chelsea Football Club 15, 93, 125-6, 127, 137, 142, 152, 154, 156-7, 158, 160-63, 274, 315, 319, 348 Chelsea as prime location 139 Cherney, Anna 338 Cherney, Lev 57, 321-2, 323 Cherney, Mikhail (later Michael) 57, 58, 318-19, 321-9, 338-9, 342, 343 Chernobyl disaster 47 Chernysheva, Natalia 212-13, 248 Chester Square, Belgravia 128-9, 130, 136, 163, 201 Chevening, Kent 276 Chevron Texaco 245 Chime Communications 276 China, affluent Russians move to 22 Chinawhite nightclub, London 98, 234 Chinese government 229 Chloé 181 Chopard 178 Chouvaeva, Natasha 18 Christie’s auctioneers 24-5, 169, 187, 188, 190, 192, 366 Chrysler 328 Chubais, Anatoly 74-5 Chukotka, Siberia 159, 160, 232, 356 Churchill, Sir Winston 203, 274, 279 CIA 75, 108, 338 Cipriani restaurant, Mayfair 26, 176 ‘Circuit’ 294 Citigroup 355 City AM newspaper 359 Cityline 104 Clanwilliam, John Meade, 7th Earl of 226 Claridge’s Hotel, Mayfair 24, 171 Clark, David 160, 282, 303 Clarke, Mr Justice Christopher 327, 328 Clegg, Nick 22 Clinton, Bill 334 Cliveden House, Buckinghamshire 178, 350 Clydesdale Bank 96, 100, 102 Cobham, Surrey 143 Cohen, Stephen F.: Failed Crusade 63 Coleman, John 147-8, 149 Collins, James 32 Collins, Tim 109 Collongues-Popova, Elena 219-20 Colony Club, Hertford Street, Mayfair 119 Commercial Court, London 317 Committee to Protect Journalists 271-2 communism collapse of (1991) 13, 32, 46, 273 Russian attitude to 49 Communist Party, backs Khodorkovsky 46 Confederation of Independent States 54 Connery, Sean 138 Conservative Party 58, 334 Constellation (ship) 229-30 Cook, Robin 160 Cooperative Insurance Society 341 Corbin, Arnaud 368 Corfe Holdings Ltd 236 Corker Binning 213 Cossacks 56, 171 Côte d’Azur 198, 203, 264 Courchevel ski resort, France 158, 181, 198, 204-7 Cowdray, Lord 236 Crown Prosecution Service 261 Crown Protection Services 351 CSKA Moscow 160 CSS 202 Curtis, Louise 11 Curtis, Sarah 10, 11, 12, 13 Curtis, Stephen Langford 89, 266 covert cooperation with NCIS 6, 7 covert custodian of Russian personal fortunes 3-4 death threats 6-7, 10 decision to co-operate with British police 5 early career 94 fatal helicopter crash follows threats 1-10 finds working for Russians exciting and challenging 93-4 and Fomichev 104, 105 funeral 10-13 guardian of Russian clients’ secrets 4 health 10 and ISC Global 237 and Khodorkovsky 4, 5, 6, 46, 93, 215, 234 meets Berezovsky 94 and Menatep 5, 6, 94, 216, 217, 237, 240 personal fortune 4-5, 236 personality 4, 10, 94, 95, 234 and security 237, 239, 240-41 sets up New World Value Fund Ltd 235 and Sibneft 98, 99 works for Berezovsky 4, 6, 95-6, 107, 110, 261, 262 and the Yukos curse 246 Curtis & Co. 94, 95, 235, 238, 240-41 Cyprus 213, 215, 216, 247, 321, 322 Daily Mail 346 Daiwa Bank 218 Daresbury, Lord 161 Darling, Alistair 301, 356 Dart, Kenneth 240 Dartmouth, Earl of 147 Davidson, Rod 11-12 Davis, Alan 9 Davis, Rick 336 Davos, Switzerland 49, 214 World Economic Forum 49, 275, 330 ‘Davos Pact’ 49-50 de Klerk, F.W. 257, 276 de Kooning, Willem: Woman III 186 de Sancha, Antonia 257 de Saumarez family 350 de Waal, Thomas 288 Del Ponte, Carla 79 Deloitte Touche 137 Deng, Wendi 280 Dent-Brocklehurst, Molly 202 Derby, Earl of 161 Deripaska, Oleg 151, 157, 162, 165, 167, 256, 315, 342, 353 aluminium magnate 15, 55 appearance 55, 319 and Bob Dole 335-6 buys racehorses 356-7 and Cherney 318-19, 322-8, 339, 342, 343 Conservative Party donation issue 334 as a dollar billionaire 363 early life 56 enemies 326 entry problems to United States 16, 328-9, 335, 336, 337 and the ‘family’ 56 friendship with Abramovich 55, 319 global business empire 16 Jewish background and Cossack heritage 56 losses 364 and Magna 328, 339, 364 marriage 56 and Nat Rothschild 329-30 personality 55, 319 a post-Soviet corporate raider 55 property purchaser 145, 320-21 and Putin 15, 66, 343 ruthless young pretender 15, 55 Deripaska, Polina 165, 181, 320 Devonshire, Duke of 114 Diana, Princess of Wales 133, 171 Dickens, Charles 196 Dinamo Tbilisi Football Club 277 Disdale, Terence 153, 154, 351-2 Doig, Peter: White Canoe 185-6, 193 Dolce & Gabbana 315 Dole, Bob 335-6 Dom-2 (reality TV programme) 189 Donde, Daniel Ermes 201 Dorchester Hotel, London 26, 223, 322, 323 Doronin, Vladimir 169-70 Downside Manor, Leatherhead, Surrey 277-8, 279 Draycott House, off Sloane Square 339 Dresner-Wickers 50 Dubai 99, 142, 198 Dubov, Yuli 267-8, 279 Bolshaya Paika (The Lion’s Share) 30, 267 The Lesser Evil 267-8 Ducasse, Alain 203 Dulwich College 166 Dyachenko, Boris 165 Dyachenko, Tatyana (Tanya) 50, 52, 145, 162, 165, 204 Dzerzhinsky, Felix 173 East End, London 21, 190 Eastern Bloc, collapse of (late 1980s) 22 Eastern Oil Company 210 Easton, Isle of Portland 11, 12 Easton Neston, neat Towcester 146 Eaton Square, London 136, 137, 140-41 Ecclestone, Bernie 162 Eclipse (yacht) 155-6 Economic and Trade Ministry 61 Economist, The 221 Ecstasea (yacht) 154 Ekho Moskvy radio station 25, 75, 271, 280 Elizabeth II, Queen 142 Elliott Hotel, Gibraltar 235 Ellison, Larry 153 Enron scandal 337 Esher, Surrey 143 Eurocement 157 Eurocement Holding AG 157 European Bank for Reconstruction and Development (EBRD) 126, 127, 128 European Champions League 154 European Union 330, 331, 332 Evans, Chris 111, 112 Evans, Jonathan 270 Evening Standard 132, 346, 365 Evraz 157, 363 Exclusive London 174-5 ExxonMobil 230, 245 Fabergé 192 Falileyev, Judge Igor 357 ‘family, the’ 51-2, 56 Farnborough Airport 152 Farouk, King of Egypt 129 Fatherland All-Russia Party 73 Fayed, Camilla 181 FBI 359 Federal Law N 153-F3 310-11 Feldman, Andrew 334 Felshtinsky, Yuri 292 Fennell, Theo (jewellers) 26 Fezan Ltd 236 Fiat 38 financial crash (1998) 218, 221 Financial Dynamics 256 Financial Times 63, 131, 236, 275, 323, 339 Finans business magazine 55, 363 Finsbury 256 Firebird Fund 80 first Gulf War 130, 131 Fitasc Sporting British clay pigeon shooting Grand Prix 148 Fitzgerald, Edward, QC 213 Fleming, Roddie 161 Florida International University 61 Fomichev, Katya 104-5, 181 Fomichev, Ruslan 104-5, 181 Forbes magazine 24, 77, 363 Forbes Russia 246, 272, 273 Ford, Tom 179 Foreign Office 7, 241, 261, 270, 282, 303, 307 Foreign Policy Centre (FPC) 225 Fortnum & Mason 24 Forus 40, 78, 79, 80 Forward Media Group 320 Fox, James 125 Fox and Gibbons 94 Foxwell, Gavin 8 France, affluent Russians move to 22 Francis I, King of France 149 Fraud Squad 261 Fredriksen, John 128, 132 Freeland, Chrystia 63 French Foreign Legion 108 French Special Forces 108 Freud, Lucian: Benefits Supervisor Sleeping 201 Fridman, Mikhail 49 Friedman, Thomas 61-2 Frieze Fair 188, 192 Frontline (American news programme) 63, 76 Frontline Club, London 36 FSB (Federal Security Service) 53, 62, 71, 74, 86, 103, 106, 115, 230, 231, 262, 267, 275, 281, 285, 286, 287, 289-90, 292, 293, 296, 305-9, 312, 313, 338 Fulham Football Club 163 Fyning Hill, Rogate, West Sussex 124, 130, 152, 161, 163, 200, 201, 353 G8 summits 259-60, 309, 360 Gagosian, Larry 202 Gallitzin, Prince Gregory 167 Garda Worldwide 130 GAZ 157 Gazprom 76, 157, 173, 233, 270-71, 317, 341, 362 Geffen, David 194 Geldof, Bob 172 General Motors 39, 244, 325 George V, King 114 Giacometti, Alberto 201 Gibraltar 19, 100, 104, 215, 216, 235, 236, 241 Gibraltar Criminal Intelligence Agency 241 Gillford, Lord (‘Paddy’) 226-7 Glencore 340 global economic crisis (2008) 17 Global Leadership Foundation (GLF) 275-6 Global Options Group Inc 335, 336 Glushkov, Nikolai 92, 96, 102-3, 279 Goldfarb, Alex 65, 80, 82-3, 275, 281, 291, 297, 298, 337 Goldfarb, Alex with Litivinenko, Marina: Death of a Dissident 307 Goldsmith, Sir James 55 Goldsmith, Lord (Peter) 279 Golubev, Yuri 245 Goodwin, James 334 Gorbachev, Mikhail 32, 35, 40, 171, 173, 199, 312 Gorbunova, Yelena 72, 110, 111, 113, 114 GPW Ltd 351 Grand Bleu, Le (yacht) 153, 154, 155, 203 Grand-Hôtel du Cap-Ferrat 203-4 Grayson, Patrick 351 Gref, German 330 Greig, Geordie 171, 172, 345-6, 365 Grey Advertising 222 Grigoriev, Boris Dmitrievich: Faces of Russia 194 Group Menatep Ltd (GML) 215-16, 227, 235, 236 Group of Seven 49 GRU 270, 287 GSS Global 248 Gstaad, Switzerland 19 Guardian 195, 268, 280, 281, 369 Gubkin Institute of Oil and Gas, Moscow 43 Gucci 179 Guernsey 236 Guinness, Lady Honor 320-21 Gulf States 99 Gusinsky, Vladimir 49, 75-6, 82, 83, 86, 132, 196, 280 Gutseriyev, Mikhail 165, 360-62 Gyunel 169 Hague, Ian 80 Hakkasan restaurant, London 176 Hamnett, Professor Chris 353 Hampton Court Palace 171 Hamstone House, St George’s Hill, Weybridge 145 Hannant, Paul 8 Hanson, Lord 226 Hanson Plc 226 Harding, James 17 Harewood estate, near Windsor 142, 203 Harrods department store, London 26, 123, 125, 137, 163, 174 Harrods Estates 135 Harrogate Ladies’ College 166 Harrow School 165 Harry’s Bar restaurant, South Audley Street, London 101, 109 Hartlands 145-6 Harvard University-Dow Jones US-Russian Investment Symposium 328 Harvey, David 17-18 Harvey Nichols department store, London 174, 180 Fifth Floor Restaurant 26 Hascombe Court, near Godalming, Surrey 111-12 Haslam, Nicholas 105, 136 Hawksmoor, Nicholas 146 Hazlitt, William 191 Health Protection Agency 298, 300 Heath Lodge, Iver, Buckinghamshire 110 Heath, Sir Edward 304 Hello!


pages: 537 words: 158,544

Second World: Empires and Influence in the New Global Order by Parag Khanna

"Robert Solow", Admiral Zheng, affirmative action, anti-communist, Asian financial crisis, Bartolomé de las Casas, Branko Milanovic, British Empire, call centre, capital controls, central bank independence, cognitive dissonance, colonial rule, complexity theory, continuation of politics by other means, crony capitalism, Deng Xiaoping, different worldview, Dissolution of the Soviet Union, Donald Trump, Edward Glaeser, energy security, European colonialism, facts on the ground, failed state, flex fuel, Francis Fukuyama: the end of history, friendly fire, Gini coefficient, global reserve currency, global supply chain, haute couture, Hernando de Soto, illegal immigration, income inequality, informal economy, invisible hand, Islamic Golden Age, Khyber Pass, Kickstarter, knowledge economy, land reform, low cost airline, low skilled workers, mass immigration, means of production, megacity, Monroe Doctrine, Nelson Mandela, oil shale / tar sands, oil shock, open borders, open economy, Parag Khanna, Pax Mongolica, Pearl River Delta, pirate software, Plutonomy: Buying Luxury, Explaining Global Imbalances, Potemkin village, price stability, race to the bottom, RAND corporation, reserve currency, rising living standards, Ronald Reagan, Silicon Valley, Skype, South China Sea, special economic zone, stem cell, Stephen Hawking, Thomas L Friedman, trade route, trickle-down economics, uranium enrichment, urban renewal, Washington Consensus, women in the workforce

Cohen, “The Geopolitics of Currencies and the Future of the International System,” University of California, Santa Barbara, Global and International Studies Program, Paper no. 10, 2003. For background on the relationship between money and territory, see Cohen, The Geography of Money (Ithaca, N.Y.: Cornell University Press), 18. 19. Joseph Stiglitz, “The Roaring Nineties,” Atlantic Monthly, October 2002. 20. Erik Erikson, Childhood and Society. 21. Ajay Kapur, Niall Macleod, and Narendra Singh, “Plutonomy: Buying Luxury, Explaining Global Imbalances,” Citigroup Industry Note, October 16, 2005. 22. See Robert B. Reich, The Future of Success (New York: Alfred A. Knopf, 2001). The minimum wage in 2006 in real terms is 37 percent below what it was in 1968. 23. The United States has spent less than 2 percent of GDP on infrastructure since 1980. 24. Steven A. Camarota, “Immigration from Mexico: Assessing the Impact on the United States,” Center for Immigration Studies, 2001. 25.


pages: 598 words: 172,137

Who Stole the American Dream? by Hedrick Smith

Affordable Care Act / Obamacare, Airbus A320, airline deregulation, anti-communist, asset allocation, banking crisis, Bonfire of the Vanities, British Empire, business cycle, business process, clean water, cloud computing, collateralized debt obligation, collective bargaining, commoditize, corporate governance, Credit Default Swap, credit default swaps / collateralized debt obligations, currency manipulation / currency intervention, David Brooks, Deng Xiaoping, desegregation, Double Irish / Dutch Sandwich, family office, full employment, global supply chain, Gordon Gekko, guest worker program, hiring and firing, housing crisis, Howard Zinn, income inequality, index fund, industrial cluster, informal economy, invisible hand, Joseph Schumpeter, Kenneth Rogoff, Kitchen Debate, knowledge economy, knowledge worker, laissez-faire capitalism, late fees, Long Term Capital Management, low cost airline, low cost carrier, manufacturing employment, market fundamentalism, Maui Hawaii, mega-rich, MITM: man-in-the-middle, mortgage debt, negative equity, new economy, Occupy movement, Own Your Own Home, Paul Samuelson, Peter Thiel, Plutonomy: Buying Luxury, Explaining Global Imbalances, Ponzi scheme, Powell Memorandum, Ralph Nader, RAND corporation, Renaissance Technologies, reshoring, rising living standards, Robert Bork, Robert Shiller, Robert Shiller, rolodex, Ronald Reagan, shareholder value, Shenzhen was a fishing village, Silicon Valley, Silicon Valley startup, Steve Jobs, The Chicago School, The Spirit Level, too big to fail, transaction costs, transcontinental railway, union organizing, Unsafe at Any Speed, Vanguard fund, We are the 99%, women in the workforce, working poor, Y2K

Stiglitz, “Inequality: Of the 1%, by the 1%, for the 1%,” Vanity Fair, May 2011. 2 “The fact is” Michael Abramowitz and Lori Montgomery, “Bush Addresses Income Inequality,” The Washington Post, February 1, 2007. 3 “By 2004, the richest 1 percent” Robert Frank, Richistan: A Journey Through the American Wealth Boom and the Lives of the New Rich (New York: Crown Publishing Group, 2007), 3. 4 “It is absolutely excessive” Matthew Symonds, “Absolutely Excessive,” Vanity Fair, October 2005. 5 WELCOME TO THE PLUTONOMY MACHINE Citigroup, “Plutonomy: Buying Luxury, Explaining Global Imbalances,” October 16, 2005. 6 “The rich now dominate” Citigroup, “Revisiting Plutonomy: The Rich Getting Richer,” March 6, 2006, http://​www.​ifg.​org. 7 A wealthy American plutocracy Paul Krugman, “Graduates Versus Oligarchs,” The New York Times, February 27, 2006; Stiglitz, “Inequality.” 8 “The top 1% alone control” David Hirschman, “The New Wave of Affluence,” Advertising Age, May 23, 2011; David Hirschman, “On the Road to Riches,” May 22, 2011, Ad Age blogs, http://​adage.​com. 9 Luxury goods were selling Stephanie Clifford, “Even Marked Up, Luxury Goods Fly off Shelves,” The New York Times, August 4, 2011. 10 Most people estimated Benjamin I.


pages: 976 words: 235,576

The Meritocracy Trap: How America's Foundational Myth Feeds Inequality, Dismantles the Middle Class, and Devours the Elite by Daniel Markovits

"Robert Solow", 8-hour work day, activist fund / activist shareholder / activist investor, affirmative action, Anton Chekhov, asset-backed security, assortative mating, basic income, Bernie Sanders, big-box store, business cycle, capital asset pricing model, Capital in the Twenty-First Century by Thomas Piketty, carried interest, collateralized debt obligation, collective bargaining, computer age, corporate governance, corporate raider, crony capitalism, David Brooks, deskilling, Detroit bankruptcy, disruptive innovation, Donald Trump, Edward Glaeser, Emanuel Derman, equity premium, European colonialism, everywhere but in the productivity statistics, fear of failure, financial innovation, financial intermediation, fixed income, Ford paid five dollars a day, Frederick Winslow Taylor, full employment, future of work, gender pay gap, George Akerlof, Gini coefficient, glass ceiling, helicopter parent, high net worth, hiring and firing, income inequality, industrial robot, interchangeable parts, invention of agriculture, Jaron Lanier, Jeff Bezos, job automation, job satisfaction, John Maynard Keynes: Economic Possibilities for our Grandchildren, knowledge economy, knowledge worker, Kodak vs Instagram, labor-force participation, longitudinal study, low skilled workers, manufacturing employment, Mark Zuckerberg, Martin Wolf, mass incarceration, medical residency, minimum wage unemployment, Myron Scholes, Nate Silver, New Economic Geography, new economy, offshore financial centre, Paul Samuelson, payday loans, plutocrats, Plutocrats, Plutonomy: Buying Luxury, Explaining Global Imbalances, precariat, purchasing power parity, rent-seeking, Richard Florida, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Reagan, savings glut, school choice, shareholder value, Silicon Valley, Simon Kuznets, six sigma, Skype, stakhanovite, stem cell, Steve Jobs, supply-chain management, telemarketer, The Bell Curve by Richard Herrnstein and Charles Murray, Thomas Davenport, Thorstein Veblen, too big to fail, total factor productivity, transaction costs, traveling salesman, universal basic income, unpaid internship, Vanguard fund, War on Poverty, Winter of Discontent, women in the workforce, working poor, young professional, zero-sum game

., Maura Judkis, “One of the Most Expensive Restaurants in Washington Is Going to Increase Its Prices,” Washington Post, January 23, 2017, accessed July 23, 2018, www.washingtonpost.com/news/going-out-guide/wp/2017/01/23/one-of-the-most-expensive-restaurants-in-washington-is-about-to-increase-its-prices/?utm_term=.3884ea4ce2ca. “ways of expropriating wealth”: Ajay Kapur, Niall Macleod, and Narendra Singh, “Equity Strategy: Plutonomy: Buying Luxury, Explaining Global Imbalances,” Citigroup, Industry Note, October 16, 2005, accessed July 23, 2018, https://delong.typepad.com/plutonomy-1.pdf. I borrow the term “income defense” from Winters, Oligarchy, 18–19. “only morons pay the estate tax”: See Julie Hirschfeld Davis and Kate Kelly, “Two Bankers Are Selling Trump’s Tax Plan. Is Congress Buying?,” New York Times, August 28, 2017, accessed July 23, 2018, www.nytimes.com/2017/08/28/us/politics/trump-tax-plan-cohn-mnuchin.html.