Ever wondered what goes on behind the scenes of global economics and politics? Have you questioned the role of influential figures like General Torrijos of Panama or the impact of the Saudi Arabian Money-laundering Affair? Ready to dive deep into the complex web of international relations, power dynamics and personal choices that shape our world? How about the ethical implications of being an "economic hit man", someone who is involved in persuading developing countries to accept substantial loans and make them dependent on Western corporations and governments?

Confessions of an Economic Hit Man

John Perkins, the author, was born in 1945, the only child of strict New England Yankee parents. His father was a World War II Navy lieutenant, and his mother was a high school Latin teacher. 

Growing up, they lived on the campus of Tilton School, an exclusive boys' boarding school in New Hampshire where his father taught. They weren't wealthy, but they were provided for by the school. Perkins' parents saw themselves as superior to the local townspeople, and they discouraged him from associating with the "townies," even though he had close friendships and budding romances with several townie girls.

Perkins' academic and athletic achievements earned him scholarships to prestigious colleges, but his parents' influence continued to shape his choices. He ended up at Middlebury College, where he struggled with feelings of inadequacy and frustration. Two significant people entered his life there: Farhad, an Iranian soccer player, and Ann, a kind and supportive woman who would become his wife. Farhad influenced Perkins to rebel against his parents, leading to his academic downfall and eventual dropout.

After dropping out, Perkins moved to Boston, worked for a newspaper, and later enrolled in Boston University's College of Business Administration to avoid the draft. Ann and Perkins married, and her connections led him to a job at the National Security Agency (NSA), which offered a draft deferment. However, he was unexpectedly drawn to the Peace Corps after attending a seminar. Perkins served in Ecuador, living in the Amazon and working with indigenous people.

During this time, he met Einar Greve, a vice president at MAIN, an Electricity generation company, who took an interest in Perkins' observations about Ecuador. After his Peace Corps tour, Einar offered Perkins a job at MAIN, which he accepted. There, he was trained by a mysterious consultant named Claudine to become an economic hit man (EHM). His job was to justify large loans to developing countries for massive infrastructure projects, which would benefit U.S. companies and keep these countries indebted and subservient.

Perkins' first assignment was in Indonesia, where he was to help create a master plan for electrifying Java. Indonesia was a strategic country rich in oil, and the U.S. wanted to prevent it from falling under communist influence. Their team stayed in luxury while the poverty outside was shocking. Perkins struggled with the morality of his work, but the allure of the good life and the expectations of his culture kept him on track.

In Bandung, Perkins worked closely with Howard Parker, an experienced load forecaster. Howard was cynical and warned Perkins against inflating economic growth forecasts for the sake of political and corporate interests. Despite his warnings, Perkins felt the pressure to deliver optimistic projections to please his bosses. Howard's illness and subsequent departure left Perkins to navigate the ethical dilemmas alone.

Ultimately, Perkins' journey as an EHM was shaped by manipulation, seduction, and the pursuit of wealth and power, all under the guise of helping developing countries. The realization that he was part of a system designed to exploit and control weighed heavily on Perkins, but he continued down the path, justifying his actions with the promise of future revelations and the belief that he was doing what was expected in his role.

Was Becoming an Economic Hit Man Worth the Price of Morality?

During 1971-1975, Perkins found himself thrust into the role of an inquisitor, tasked with visiting major population centers in Indonesia. His job was to gather economic data, but the locals were wary and reluctant to share information, often deferring to higher authorities in Jakarta. This left Perkins feeling like an intruder, suspecting a conspiracy against him.

Back in Bandung, Perkins befriended Rasy, a local economics student who introduced him to the vibrant culture of Indonesia. Rasy taught Perkins Bahasa, a language in Indonesia, taking him on scooter rides through the city to experience shadow-puppet shows, traditional music, and bustling street scenes. 

One memorable night, Rasy took Perkins to a tiny coffeehouse where young Indonesians welcomed him and discussed their views on the Vietnam War and American foreign policy. Their disdain for the U.S. invasion and their curiosity about his thoughts left a lasting impression on Perkins.

Perkins' encounters with the locals, especially a powerful performance by a dalang (puppet master) that satirized U.S. foreign policy, made him question his role and the motives behind their projects. The dalang depicted Richard Nixon and a bucket-wielding figure representing American exploitation, resonating deeply with the audience and Perkins. This night, filled with laughter, shock, and rage, highlighted the complex relationship between the U.S. and Indonesia.

These experiences led Perkins to question the ethics of foreign aid and imperialism. He pondered whether their actions truly helped the local population or merely served American interests. His time in Jakarta, meeting with political and business leaders who seemed to resent his presence, reinforced his doubts. Their prepared responses and the bureaucratic hurdles Perkins faced made him wonder about the authenticity of the data he was collecting.

Despite these internal conflicts, Perkins continued his work, navigating the complexities of international development and grappling with the moral implications of his role. The conversations with young Indonesians and the powerful imagery of the dalang stayed with him, challenging him to reconsider the true impact of their economic interventions.

Richard Nixon, Shadow Puppets, and the Ethics of U.S. Foreign Policy in 1970s Indonesia

The day after Perkins arrived in Panama, he was shown around by Fidel, a proud Panamanian whose great-great-grandfather had fought for independence alongside Bolívar. Their connection deepened when Perkins mentioned his relation to Tom Paine, whose work Fidel admired. 

As they drove through Panama City, Fidel showcased its prosperity, likening it to the "Switzerland of the Americas" due to its numerous international banks. While observing ships waiting to navigate the canal, Fidel remarked on the ignorance of North Americans about global affairs.

In a park, they met a family picnicking. The father, a third-generation Canal Zone resident, hoped his son would continue the family tradition of working in the Zone, though wary of the political climate under Torrijos. Later, Fidel took Perkins through impoverished areas, a stark contrast to the opulence of the U.S.-controlled Canal Zone, where American laws and luxuries prevailed, disconnected from Panama's economic struggles.

In the evening, Fidel introduced Perkins to Panama's nightlife, where soldiers and locals mingled. In a bar dominated by U.S. military personnel, they witnessed tensions between them and locals. Fidel's rapport with the staff provided insight into the lives of women escaping turmoil in their home countries, seeking new beginnings in Panama.

Perkins' unexpected invitation to meet General Torrijos revealed the General's desire for Panama to serve as a model of independence and equity, free from external influences. He sought U.S. economic aid for genuine development, challenging the prevailing system of exploiting countries through debt.

Amidst these experiences, Perkins pondered the shifts in global power dynamics, particularly the impact of OPEC and the oil embargo on the U.S. economy. The embargo's aftermath forged a deeper bond between corporatocracy and Middle Eastern oil, exemplified by the Saudi Arabian Money-laundering Affair. This deal funneled petrodollars into U.S. projects in Saudi Arabia, modernizing the kingdom while entrenching American influence.

These events underscored the intricate ties between power, politics, and economics, revealing the complex web of interests shaping global affairs. As Perkins navigated these relationships, he reflected on the historical patterns of empire and the personal choices that defined his role within it.

What Can Panama's Transformation Teach Us About Global Power Dynamics?

Saudi Arabia shaped many careers, including that of Perkins. By 1977, Perkins had risen to become the youngest partner at MAIN, managing a team in Boston and giving talks at Harvard. 

Despite the collapse of his marriage, he enjoyed a luxurious lifestyle, even owning a yacht. His career took a turn when Bruno, a colleague, proposed an innovative econometric model based on a Russian mathematician's work. Together, they developed the Markov method, which helped justify large loans to countries, bolstering their reputation.

In Panama, Perkins honored a secret agreement with Omar Torrijos, ensuring their studies were honest and benefited the poor. As Torrijos and Jimmy Carter renegotiated the Canal Treaty, Perkins wrote a bold op-ed for the Boston Globe advocating for Panamanian control. Despite backlash, it strengthened their position in Panama.

During a stay at the Hotel Panama, Perkins encountered Graham Greene, who admired Torrijos and warned of U.S. efforts to undermine him. Greene encouraged Perkins to write about important issues, which resonated deeply as Torrijos successfully negotiated the Canal's transfer to Panama.

Between 1975 and 1978, Perkins frequently visited Iran, where the shah ruled with U.S. support. Despite appearances of progress, Perkins discovered deep resentment among Iranians. A clandestine meeting with Yamin, a subversive figure, and "Doc," a former shah adviser disfigured by punishment, revealed the shah's unpopularity and predicted his downfall.

In 1978, Perkins' old friend Farhad warned him to leave Iran as the country spiraled into chaos. The shah fled, and Ayatollah Khomeini's followers seized the U.S. Embassy. The shah sought asylum in Panama, but his demise and the subsequent loss of millions for MAIN illustrated the peril of misreading international dynamics.

The Iranian revolution underscored the U.S.'s denial of its global role. The fall of the shah and the rise of Islamic fundamentalism foreshadowed future upheavals, echoing the lessons from Panama about the dangers of corruption and miscalculation.

From Harvard Talks to Torrijos' Treaty: A Journey Shaped by Saudi Arabia, Greene, and the Iranian Revolution

Colombia is often perceived as the keystone of Latin America, unlike Saudi Arabia, Iran, and Panama, which have unique qualities due to oil and the Panama Canal. Historically, the U.S. has viewed Colombia as a pivotal player in Latin American politics and commerce, strengthened by its strategic location and rich natural resources.

A Colombian college professor once relayed to Perkins how Teddy Roosevelt allegedly referred to Colombia as "the keystone to the arch of South America," emphasizing its geographical and political relevance. This idea is not far-fetched when one considers Colombia's rich history and cultural diversity, from its colonial past to the present. The country's captivating landscapes, from its beaches and mountains to its rainforests, enhance its appeal.

Perkins' work in Colombia began with a massive hydroelectric project led by MAIN, the engineering firm he worked for. Colombia appeared to be a typical case for illustrating how a country could accumulate substantial debt, with the promise that future project benefits and natural resources would repay these loans. However, the reality was more about subjugating Bogotá to further the global empire.

During the 1970s, MAIN secured several contracts in Colombia, including the development of hydroelectric facilities. Perkins was stationed in Barranquilla, where he met Paula, a Colombian woman who had a profound impact on his life. Her compassion helped him navigate the personal trauma of his failing marriage and confront the consequences of his job.

Paula enlightened Perkins to the realities of his work. She disclosed how many Colombians, including her brother who joined the guerrilla movement, opposed their projects, viewing them as harmful to their land and lives. Their conversations prompted Perkins to question his role and the ethical implications of his job, pushing him to reconsider his life choices.

In parallel, Perkins was also observing the political landscape in Latin America. Leaders like Jaime Roldós of Ecuador and Omar Torrijos of Panama inspired him. They stood up to powerful foreign interests, advocating for their countries' rights to self-determination. Roldós, in particular, campaigned against oil exploitation by foreign companies, emphasizing national interests and social reform.

In 1980, after a series of events and a sailing trip in the Virgin Islands that brought everything into sharp focus, Perkins realized he could no longer continue as an economic hit man. He saw his job as modern-day slavery, exploiting countries and people for corporate gain. On April 1, 1980, Perkins walked into his boss's office and resigned, determined to change the course of his life.

Could Teddy Roosevelt's Words Still Resonate in Today's Colombia?

Leaving MAIN was no easy task for Perkins. His boss, Paul Priddy, thought he was joking, but Perkins was determined to move on. With Paula's advice to avoid suspicion, he told Paul he wanted to freelance and write about the people he'd met at MAIN. Eventually, Paul relented, but Perkins' colleagues thought he was crazy. They didn't understand his decision, which forced them to reflect on their own choices. His staff felt abandoned, but Perkins was resolute.

Though he left MAIN, Perkins' stock cash-out wasn't enough for retirement. He was thirty-five, far from the millionaire he once envisioned. Later, Paul called Perkins back for a high-paying expert witness job that led to a new career. He testified for U.S. utility companies, including the controversial Seabrook nuclear power plant. 

This work allowed Perkins to keep in touch with Paula and old friends in Ecuador, where Jaime Roldós was challenging oil companies and pushing for revolutionary reforms. Tragically, Roldós died in a suspicious plane crash in 1981, leading to accusations of CIA involvement.

Two months later, Panama's Omar Torrijos, another anti-corporatocracy leader, also died in a plane crash. Perkins was devastated, knowing these deaths were likely orchestrated to send a message. Torrijos's successor, Manuel Noriega, lacked his predecessor's charisma and faced immense pressure from powerful enemies.

During this period, Perkins struggled with his job justifying the Seabrook plant. The evidence increasingly showed that alternative energy sources were better. He couldn't continue, so Perkins founded Independent Power Systems (IPS) to develop environmentally friendly power plants. Despite the risks, IPS succeeded, thanks to support from influential backers, including Bruno Zambotti and Bankers Trust.

Meanwhile, the energy industry was undergoing major changes. MAIN failed to adapt and was sold. In contrast, Enron thrived, using new management techniques and creative financing. Discussions often centered on George W. Bush, whose energy ventures were mysteriously successful, likely due to his father's influence. When Harken Energy, with Bush on its board, secured exclusive drilling rights in Bahrain, it raised eyebrows. This unexpected success hinted at the deep connections and influence of the network Perkins once served as an EHM.

From MAIN to IPS: Journey from Paul Priddy to Bush's Energy Ventures

During the transformative years of the 1980s and 1990s, Perkins witnessed a new era in world economics driven by aggressive corporate expansion and deregulation. 

The energy sector, where Perkins worked, exemplified this shift. The Public Utility Regulatory Policy Act (PURPA) intended to promote small, independent energy companies, but instead, large corporations found ways to dominate and crush the independents. Major players in the Reagan and Bush administrations, deeply intertwined with the oil industry, prioritized corporate profits over environmental or social concerns.

Perkins' company, IPS, managed to thrive against the odds, thanks largely to his connections within the corporatocracy. This era saw a pervasive expansion of the Economic Hit Man (EHM) concept, where executives from various industries pursued profits without regard for social or environmental consequences. They exploited cheap labor and resources globally, leaving devastation in their wake.

Amidst Perkins' success, he struggled with guilt and depression, particularly as he became a father. The modern international financial system, born from post-World War II efforts to rebuild Europe, had evolved into a tool for global capitalist domination. By the late 1980s, with the fall of communism, it was clear that capitalism's global empire would dominate unchecked.

In 1987, Perkins faced a moral dilemma when offered a lucrative consulting contract with Stone & Webster Engineering Corporation (SWEC), a major player in the energy sector. His role was mostly symbolic, leveraging his reputation to benefit the company. However, Perkins was explicitly told to avoid writing about his past experiences with MAIN or any sensitive political topics. Accepting this contract felt like a betrayal of his values, yet he rationalized it as a necessary step to avoid potential threats.

The invasion of Panama in 1989 by the United States was a turning point for Perkins. The U.S. attacked Panama under the pretext of capturing General Manuel Noriega, but the true motives lay in controlling the Panama Canal and thwarting Japanese influence. The invasion resulted in significant civilian casualties and international condemnation, yet the American public remained largely unaware of the atrocities.

This event, coupled with Perkins' growing frustration with the corporatocracy, led him to resume work on his tell-all book, "Conscience of an Economic Hit Man." Despite promising SWEC's president to keep his silence, Perkins felt compelled to expose the injustices he had witnessed and participated in.

In the 1990s, Perkins' involvement in nonprofit work with indigenous communities and environmental preservation provided some solace, but it couldn't fully alleviate his guilt. He realized that his actions had contributed to a world burdened with debt and exploitation, and he owed it to his daughter to try and make amends.

Ultimately, Perkins decided to leave the corporate world and dedicate himself to writing and activism. In 1997, a moment of clarity during a workshop in the Caribbean prompted him to fully commit to his principles. He abandoned his consulting practice, despite warnings from friends in the nonprofit sector, and focused on completing his book.

By September 11, 2001, Perkins was deep in the Amazon, reflecting on his journey and the complex web of corporate greed, global politics, and personal responsibility that had shaped his life.

Did Corporate Greed and U.S. Politics Shape the 1980s and 1990s Economic Landscape?

On September 10, 2001, Perkins was paddling down a river in the Ecuadorian Amazon with Shakaim Chumpi, a former soldier from the Ecuador-Peru conflict and coauthor of his book, "Spirit of the Shuar." They were leading a group of North Americans to Chumpi's community to learn about his people and help preserve their rain forests. 

The Shuars, fierce warriors, had fought to protect their land from Peruvian soldiers, oblivious to the fact that the conflict was driven by oil interests. As they paddled, Chumpi ominously said they were preparing for war—not against them, their friends, but against oil companies and military forces that threatened their jungle.

The next morning, Perkins heard the shocking news: New York was under attack. Upon returning to Florida, he felt compelled to visit Ground Zero. The devastation was overwhelming, and he encountered people sharing their grief and disbelief. An Egyptian shoemaker spoke of lost friends and a nephew he might have seen jump from the towers. The light that now filled lower Manhattan, previously shadowed by the towers, seemed to symbolize a newfound openness among people.

Perkins had an unexpected conversation with an Afghan man near Wall Street. He spoke of his ruined pomegranate farm, destroyed by war, and how he turned to growing opium to survive. His story highlighted the desperate choices people make in the face of destruction and poverty.

Reflecting on the events of September 11 and the ongoing conflicts, Perkins realized the pervasive impact of the corporatocracy. From Venezuela's struggles under Hugo Chávez to Ecuador's battle against oil companies, he saw the consequences of economic hit men like himself. His journey brought him to a point where he could no longer ignore the role he played in perpetuating global exploitation.

Perkins returned to Ecuador in 2003, where the indigenous people faced threats from oil companies. Their stories of soldiers destroying their lands and taking hostages were heart-wrenching. The Amazon tribes, despite their lack of formal education, asked profound questions about the U.S.'s intentions in Iraq, showing a deeper awareness than many Americans.

The prophecy of the Condor and Eagle, which Perkins had heard in Latin America, spoke of the need for a balance between the heart (Condor) and the mind (Eagle). It resonated with him as he contemplated the need for a new dream, one that values sustainability and equality over exploitation.

Back in the U.S., the headlines about Bechtel and Halliburton's contracts in Iraq reminded Perkins of the corporatocracy's reach. It was clear that true change required more than just exposing corruption; it required a shift in consciousness.

The real story of modern empire is not a conspiracy but a system everyone has participated in. People must wake up, question their role, and take action to create a better world.

From Amazon to Ground Zero: An Ex-Economic Hit Man's Eye-Opening Journey

Despite his academic achievements, Perkins struggled with feelings of inadequacy, which shaped his decisions, including his rebellious stint in college that led to him dropping out. This period of Perkins' life was pivotal, as he navigated various jobs and ultimately joined the Peace Corps, serving in Ecuador. His observations there caught the attention of influential figures, leading him to a career with MAIN and training as an economic hit man (EHM).

As an EHM, Perkins' role was to justify large loans to developing countries, which ultimately benefited U.S. corporations and kept these countries indebted. His first assignment in Indonesia exposed him to the stark contrast between luxury and poverty, and he grappled with the ethical implications of his work. Despite his inner conflicts, the allure of wealth and cultural expectations kept him on track.

Throughout Perkins' journey, significant encounters and relationships, such as with local Indonesians and influential figures like General Torrijos in Panama, challenged his perspective and deepened his understanding of global power dynamics. These experiences led Perkins to question the ethics of foreign aid and the exploitation inherent in the system he was part of.

Eventually, Perkins reached a breaking point, realizing the true impact of his actions and the system's exploitative nature. This led to his resignation from MAIN and a shift towards a more principled life, including founding an environmentally friendly power company and engaging in nonprofit work. Despite these efforts, the pervasive influence of the corporatocracy and the ongoing exploitation remained apparent.

Witnessing significant global events, such as the Iranian revolution and the U.S. invasion of Panama, further solidified Perkins' understanding of the deep connections between corporate interests and global politics. These events underscored the need for a fundamental change in consciousness and a move towards sustainability and equality.

Ultimately, Perkins' journey highlighted the complex web of personal choices, corporate greed, and global exploitation, prompting him to advocate for a new vision that values the heart and mind equally. The real story of modern empire isn't a conspiracy but a system everyone participates in, and true change requires collective awareness and action.

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Confessions of an Economic Hit Man

John Perkins

Ever wondered what goes on behind the scenes of global economics and politics?

Have you questioned the role of influential figures like General Torrijos of Panama or the impact of the Saudi Arabian Money-laundering Affair?

Ready to dive deep into the complex web of international relations, power dynamics and personal choices that shape our world?

How about the ethical implications of being an "economic hit man", someone who is involved in persuading developing countries to accept substantial loans and make them dependent on Western corporations and governments?

Key Ideas

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