A reporter sent an email to a bunch of her friends about the World Economic Summit. She foolishly forget to tell them to keep it secret. Some startling revelations on what the world's rich and movers and shakers are thinking. She is very angry at finding these comments on the internet. Excerpts below:
The global economy is in very very very very bad shape. Last year when WEF met here in New York all I heard was, "Yeah, it's bad, but recovery is right around the corner". This year "recovery" was a word never uttered. Fear was palpable -- fear of enormous fiscal hysteria. The watchwords were "deflation", "long term stagnation" and "collapse of the dollar". All of this is without war.
- If the U.S. unilaterally goes to war, and it is anything short of a quick surgical strike (lasting less than 30 days), the economists were all predicting extreme economic gloom: falling dollar value, rising spot market oil prices, the Fed pushing interest rates down towards zero with resulting increase in national debt, severe trouble in all countries whose currency is guaranteed agains the dollar (which is just about everybody except the EU), a near cessation of all development and humanitarian programs for poor countries. Very few economists or ministers of finance predicted the world getting out of that economic funk for minimally five-10 years, once the downward spiral ensues.
-Except for diehard American Republicans, a few Brit Tories and some Middle East folks the WEF was in a foul, angry anti-American mood. Last year the WEF was a lovefest for America. This year the mood was so ugly that it reminded me of what it felt like to be an American overseas in the Reagan years. The rich -- whether they are French or Chinese or just about anybody -- are livid about the Iraq crisis primarily because they believe it will sink their financial fortunes.
- US unilateralism is seen as arrogant, bullyish. If the U.S. cannot behave in partnership with its allies -- especially the Europeans -- it risks not only political alliance but BUSINESS, as well.
When Colin Powell gave the speech of his life, trying to win over the nonAmerican delegates, the sharpest attack on his comments came not from Amnesty International or some Islamic representative -- it came from the head of the largest bank in the Netherlands!
I learned from American security and military speakers that, "We need to attack Iraq not to punish it for what it might have, but preemptively, as part of a global war. Iraq is just one piece of a campaign that will last years, taking out states, cleansing the planet."
These WEF folks are freaked out. They see very bad economics ahead, war, and more terrorism. About 10% of the sessions were about terrorism, and it's heavy stuff. One session costed out what another 9/11-type attack would do to global markets, predicting a far, far worse impact due to the "second hit" effect -- a second hit that would prove all the world's post-9/11 security efforts had failed. Another costed out in detail what this, or that, war scenario would do to spot oil prices.
The world isn't run by a clever cabal. It's run by about 5,000 bickering, sometimes charming, usually arrogant, mostly male people who are accustomed to living in either phenomenal wealth, or great personal power. A few have both. Many of them turn out to be remarkably naive -- especially about science and technology. All of them are financially wise, though their ranks have thinned due to unwise tech-stock investing. They pay close heed to politics, though most would be happy if the global political system behaved far more rationally -- better for the bottom line. They work very hard, attending sessions from dawn to nearly midnight, but expect the standards of intelligence and analysis to be the best available in the entire world. They are impatient. They have a hard time reconciling long term issues (global wearming, AIDS pandemic, resource scarcity) with their daily bottomline foci. They are comfortable working across languages, cultures and gender, though white caucasian males still outnumber all other categories. They adore hi-tech gadgets and are glued to their cell phones.
