Once conspiracy theories are established as "truth," they hardly ever die, but instead mutate into ever more viral transmogrifications which have the capacity to poison institutions and governments.
One such theory, the blood libel, has afflicted both Christians and then Jews for centuries. But one less noticed libel has been the persistent charges against the international banking system as being a global Jewish cabal in cahoots with the United States’ supposed attempt to establish domination over the entire global economy. The idea is that "Big Satan" and "Little Satan" are co-conspirators determined to put the global economic system under their heels.
The libel against Jewish owned banks and financial institutions has long roots going back at least as far as the Middle Ages, when lords and knights cooperated in what amounted to extortionist shakedowns of the Jewish owned banks and Jewish communities. Part of their success in so doing was that they distributed libelous propaganda accusing the Jews of wanting world wide financial domination. Most know this conspiracy theory today in its form as anti-Zionism.
One form of the anti-Zionist, Jewish banking cabal theory has been alive and well for many years in the Middle Eastern Arab countries. The editor of "Jewish Comment" summarized the theory well in a 2002 article describing his encounters with some young Arabs who were earnestly exhorting passers by to be aware of the "fact" that "Goldman Sachs and Lehman Brothers were part of the international conspiracy of Jews and Americans to finance Zionist aspirations." (Google "Goldman Sachs, Lehman Brothers and the Great Zionist Conspiracy" for the article and other interesting results.)
The SEC charges of fraud against Goldman Sachs have many facets and political permutations, but one of those facets may be the administration’s attempts to palliate Arabs and Palestinians by legitimizing one of their favorite anti-Zionist tropes. By attacking Goldman Sachs, the Obama administration gives legitimacy to Arab conspiracy theories and anti-Zionist attacks while giving succor to Palestinians who are livid over the Israeli settlements in East Jerusalem and have refused to consider peace talks unless the construction is halted.. Obama himself has been outraged and has pounded Netanyahu for his intransigence over the construction.
The attack on Goldman Sachs, which Marc Faber recently described as a relatively honest company, is a brilliant, multi-pronged but thuggish approach to sidelining or even crippling Goldman Sachs. It reinforces Obama’s attempts to control Wall street by creating a villain he knows the public is willing to throw rotten tomatoes at. It bolsters his aim to pass legislation controlling Wall Street while at the same time it sends not so subliminal messages to Israel and its sworn enemies that Obama is willing to throw a capitalist Jewish banking institution under the bus in order to get his legislation passed while at the same time giving solace, comfort and ratification of conspiracy theories to Israel’s enemies. Obama appears to be entirely willing to sabotage Goldman Sachs, which is integral to much of the West’s financial system.
But the chief aim of this administration in attacking Goldman Sachs is probably not to completely destroy the institution, but to keep it subservient to the US administration–much like the lords and knights of the Middle Ages used extortion and threats to humiliate and control the Jewish bankers. The idea is to wring concessions, confessions and probably hefty fines out of Goldman Sachs while at the same time achieving a multiple but dubious political goals, domestic and international.
However, a goal of the attack on Goldman Sachs, coming as it did just before the proposed sweeping financial "reforms" of the Obama administration, also is to serve as a severe warning to all of America’s banking institutions. It is the psychological equivalent of the Mafia sending a dead fish to a rival. It is the Obama administration making an offer that cannot be refused. For after all, the SEC, with its massive regulatory power can and no doubt will, target selectively those "dead fish" financial institutions the Obama administration wishes to make subservient to his agenda. All banks must now be at constant "red alert" status.
What the political outcome--domestic and international--will be is unknown. But it is quite probable that congress, in its attempts to appear supremely virtuous guardians of the public welfare, will be quite willing to buy into conspiracy theories and into the public anger over financial institutions’ transgressions, real and imagined.
To that end, goaded on by an anti-Israeli president, they may be quite willing to paint a target on Goldman Sach’s back.
[Postscript: The attack on Goldman Sachs is pertinent to Delaware, as it is home to over 50% of all U.S. publicly traded corporations and to some 60% of the Frotune 500. Banks and corporations are not high on the Obama administration's most favored list, so further erosion of Delaware's status as America's corporate capital can be expected as the administration tightens its control over businesses and financial insitutions. But another article would be requred to more fully address the situation.]