
Whether you analyse the causes of ecological destruction, financial injustice, human rights abuses or undemocratic elite power, a significant proportion of these tragedies can be traced to the City of London. The assertion that corporations behave as psychopaths is backed up by looking at the actions and impacts of the powerful multinational companies based In London. Atrocities directed from London firms include those of BP, who sponsor death squads in Colombia; Rio Tinto, who destroy the lives, lands and livelihoods of indigenous people in Papua’s Rainforest; Lloyds TSB, who provide the banking for the makers of illegal cluster bombs and DOW, who have washed their hands of responsibilities for a chemical disaster that is still affecting over 100,000 people; these four companies are also trying to cleanse their reputations by sponsoring the Olympics. With so many connections to government, not least through the £2 billion spent in lobbying it is not surprising that corporations are being protected with new laws removing the right to protest and increased security. Many businesses directed from the nation’s capital allow terrible human rights abuses in the pursuit of profits, especially those complicit in killing indigenous people due to their mining and petroleum activities. Half the world’s mining companies are registered in London. The pro-human rights campaigners, London Mining Network, are highlighting the London Metal Exchange; the Network has accused the Exchange of having “outstandingly bad records of poor governance, environmental destruction, illegality and complicity with human rights and workers’ rights abuses.” The Anglo-French oil company Perenco has announced its plans to invade uncontacted tribes’ territory in Peru, whilst denying there are people there this means they are denying these people have rights. Vedanta, the British company has planned a mining operation that will ethnically cleanse the Dongria Kondh tribe in India. Vedanta is owned by London based Anil Agarwal. The British company Finsbury represents PR for Vedanta. In Nigeria, the land, water and air has been devastated from pollution caused by oil companies, including the Dutch Company Shell with a headquarters just south of the Thames. Rolls Royce and the British Oil companies Petrofac and Amec are involved in the oil industry in Sudan; this generates money for the Government, which funds the genocide in Darfur. Petrofac also operates in Syria: thus also funding the atrocities there. British high-street banks Lloyds TSB, RBS, Barclays and HBOS provide banking services for these three companies. Both Lloyds and RBS were bailed out by the British taxpayers and have been accused of playing pivotal roles in the current financial situation. Despite the bailout, RBS gave huge bonuses whilst it made 11,000 people redundant. Lloyds TSB investment strategy in toxic loans has been blamed for creating the financial crisis: the taxpayer is now underwriting these toxic loans. There have also been many redundancies at Lloyds TSB. Lloyds was also accused of tax evasion, using offshore tax havens that seriously damage the British Economy. This is a common theme connected to many multinational companies and will be focused on later in this article. There are activities that kill people directed from other banks with headquarters near the Thames. Goldman Sachs, Deutsche Bank, Pimco, JP Morgan Chase, AIG and Bear Stearns are all involved in selling vital commodities, such as grain; this distorts the prices. It creates food inflation and therefore food instability: this leads to people starving who cannot afford the inflated prices. It is reported between “2005 to 2008, the worldwide price of food rose 80 percent – and has kept rising.” The austerity measures resulted from the debts caused by the banking crisis, which have been “socialised”; the IMF has admitted that this is having a severe affect on people: these measures are leading to unemployment, homelessness, poverty and starvation, especially in Greece. Wider ramifications are likely as the cuts are deepened across Europe. Despite this, there are lobbying groups fighting to keep the bankers’ bonuses and stop regulations on the financial industry, which were both attributed as causes of the banking crisis. The Association for Financial Markets in Europe is one such group; it is using the law firm Clifford Chance to argue that bankers, like top footballers, deserve astronomical pay levels. The British Banking Association is another such lobbying group; it has been arguing to reduce regulation on the industry and represented the banks over the ‘insurance mis-selling scandal.’ The murky world of derivatives and other financial investments has also been accused of having a toxic impact on the economy, and thus leading to poverty and unemployment and the debt crisis. A Frontline investigation has asserted that derivatives were central to causing the crisis and therefore the bailout, especially those who invented these financial mechanisms and the lack of meaningful regulation. Columbia University professor, Joseph Stiglitz highlights how ‘banks hate transparency in markets because the darkness is where they can make the easiest killing.’ He also suggests that the global economy is at risk in the future from crises caused by the same derivatives trading. The Liffe, London International Financial Futures and Options Exchange, is one such institution, it runs solely on electronic trades in derivatives and other speculative financial instruments. Another institution in London is the International Swaps and Derivatives Association. It trades in a speculative market worth $700 trillion, somehow worth 10 times the size of the real global economy. It has recently been in the news as it decides on whether Greece is in ‘default’. Defying any sense of fairness, members of this organisation that make this decision also hold the credits, and they will be paid out if they decide that Greece has defaulted. Unlike sport, it seems in business, some players also get to be the referee. The British Government’s failure to control these forces within the economy can be explained by political donations; the Conservatives were strongly backed by investors who donated 27% of their funding. Tax avoidance costs the British Economy a reported £69.9 billion per year; in 2011-12 the Coalition Government cut £6.2 billion from public services. If it collected this tax, it could vastly improve public services, increase employment, investing in green technology, abolish tuition fees and act in the interests of the people. This would only come at the expense of the super rich at the top of multinational companies. Her Majesty’s Revenue and Customs said that financial firms KPMG, PricewaterhouseCoopers, Ernst & Young and Deloitte were behind almost half of all known tax evasion schemes. Healthcare providers are amongst the super-tax evaders. A report in The Guardian highlights how four firms that lobbied for the health bill will benefit from the privatization and reduction of this public service and dodge paying tax. Spire Healthcare is one such example, it made a profit of over £100 million, yet recorded a loss of half that amount. If additional people die because of the cuts in the NHS, Spire Healthcare, amongst the other firms should take a share of this responsibility. In a sick twist of the current system, they may also be getting paid to provide the inadequate treatment that leads to these deaths. In light of these examples of corporate behaviour, the assertion that some corporations act like psychopaths seems a rational conclusion. This begs the question, why is someone or somebody not doing something about it? Four potential challengers to this power are the media, the justice system, Parliament and the people; however it seems that only the people are likely to engender an alternative. The power of a few media moguls within the press suggests it is not in their interests to reveal the problems within the system, especially with serious doubts as to whether the fattest of media fat-cats is even fit to own a company: let alone one that might act ethically in the public interest. The justice system appears determined not to question these issues, which was clear in the court case between OccupyLSX verses the City of London Corporation and the notable absence of a willingness to address the issues raised by the defendants. Another potential solution should be Parliament, although with so much corporate lobbying, elite-self interest and the fact they engendered the current situation, this seems fanciful to expect a solution from them. This means that the only hope that the City of London does not continue its devastating dominance over the country and the world is the people. Awareness of the crimes needs to increase; the corporations need to know that the people consider this behaviour to be unacceptable and to know that: people come before profit. Therefore, I suggest it is a civic duty to act in whatever way you consider reasonable to resist and control the corporate power. In limited cases, this may cure the corporations and in others constrain their criminal activity. Although it was said over a hundred years ago, it seems more acute now and some people still need to realise the wisdom from this Cree quote. “Only when the last tree has died and the last river been poisoned and the last fish been caught will we realise we cannot eat money.” Today, it is not even money; it has now become a fiction of global finance, a concept that is even harder to swallow. 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Or does it just serve the elites? OccupyLSX, 20th February 2012, http://occupylsx.org/?s=steve+rushton Daniel Ashman, An Occupier’s Perspective: Why Respect Authority When Authority Disrespects You? OccupyLSX, 21st February 2012, http://occupylsx.org/?s=daniel+ashman