John Perkins, the author of Confessions of an Economic Hit Man should write fiction.  This guy can tell one hell of a story.

This auto-biography is Perkins’ account of being an economic hit man (EHM) for the NSA.  He did not know he was since he was never employed by the NSA.  Instead he worked for a government contractor that was paid to help develop new economies around the world.  Think of places like Panama, Ecuador, and Indonesia.  The US government has a stake in developing these countries so they can do either or both of the following:

Have a strategic military presence:  In Panama this would mean our military base near the Panama Canal.  We can have military near the volatile countries in Central and South America and at the same time keep enemies away from the canal in case of another war.

Exploit the country’s resources:  In Indonesia economists persuaded the government to take loans from the US and other world organizations to build power plants.  Indonesia suffered under huge debt while US contractors made billions.

Perkins tells us in his book about the role of the EHM in making these things happen.

Here’s the premise (With examples):
There are four ways a government can get what it wants.  If step one doesn’t work, they move to step two.  Two to three, you know how it works…

Step 1)  Official diplomatic relations.  Think about our uneasy ties with Russia.  These days we send over Condi Rice and the diplomats talk things out hoping to reach agreements.

Step 2)  The Economic Hit Man.  EHMs might be sent to Indonesia and use exaggerated models to predict economic growth at an outrageous rate if the government officials borrow lots of money to grow the economy.  The economy freezes under enormous debt, and the government allows the US to set up a naval base or something else in exchange for debt forgiveness.

Step 3)  The Actual Hit Man.  Unlike Step 2, these people are actually employed by the government.  Think CIA secret operatives.  They are sent in to kill a political figure that opposed the government (think about our many failed attempts to take out Saddam Hussein).  Sometimes the goal is to incite rebellion (Bay of Pigs in Cuba) or simply overthrow the government (we helped do this in Iran TWICE during the Cold War).

Step 4)  This Means War.  The best example is Iraq.  We’ve tried many times to shut down Hussein but eventually we invaded the country to get rid of the man.  The connection with terrorism is irreverent in this context.  The conspiracy of invading Iraq for a strategic location in the Middle East is the idea.  If that’s the case, I would say our government was very successful here.

There is a logical progression above which makes the Perkins book all the more compelling.  However you know he can’t write a book about this without getting backlash from the government and former friends.  Here is some of the main criticisms:

• The level of detail is intense.  I’m talking about the guy remembers what he ate at specific dinners in other parts of the world.  I can’t remember lunch.
• He was never under the employ of any government.  Though as he points out he worked for government contractors.
• The NSA is not involved with espionage.  The NSA does things like decryption of enemy messages.  They are technology oriented, not so much the take over a country team.
• He has no facts.  Much of his discussion is drawing conclusions in hindsight.  Humans tend to believe the most incredible story to rationalize events.  Often times it’s not nearly as complicated or organized as conspiracy theorists think.
• For all of this to work the way he claims, there can only be about 100 people in absolute control over the world.  That is just too impossible (consider George Bush would have to be one of them).
• If 100 people do control the world, Perkins’ book is his admittance that he was nothing more than a manipulated pawn.  Manipulated pawns only learn the “evil plan” in the movies.

For all the questionable events and conclusions in this book, it remains fascinating.  It gets you to think, you don’t want to put it down, and you’re said when it’s over.  Read the book (don’t buy it) and make your own decisions about it.

My own thoughts vary every time I think about this book.  The Department of Defense of course writes him off as a conspiracy theorist trying to make a buck, and Perkins insists the book is all truth.  Naturally the truth is probably somewhere in between.  Perkins exaggerated estimates on economic growth at the insistence of his company trying to profit, not because the government wanted to put up a military base.

By The Weakonomist

The Weakonomist is the founder of Weakonomics. Clicking the picture of the puppy will tell you more about him. If you like what you're reading consider subscribing to the blog, following him on Twitter, and checking out the related posts below. Please consider a donation if you really enjoy Weakonomics.

categories: books, government