The Shadow Market: How a Group of Wealthy Nations and Powerful Investors Secretly Dominate the World [Hardcover]

Eric J Weiner (Author)

Book Description

Publication Date: September 21, 2010

Acclaimed financial journalist Eric J. Weiner reveals how foreign countries and private investors are increasingly controlling the global economy and secretly wresting power from the United State in ways that our government cannot reverse and about which the average American knows nothing.

The most potent force in global commerce today is not the Federal Reserve, multinational banks, or the governments of the G7 countries. Rather, it is the multi-trillion-dollar network of super-rich, secretive, and largely unregulated investment vehicles--foreign sovereign wealth funds, government-run corporations, private equity funds, and hedge funds--that are quietly buying up the world, piece by valuable piece.

As Weiner's groundbreaking account shows, the shadow market doesn't have a physical headquarters such as Wall Street. It doesn't have a formal leadership or an index to track or a single zone of exchange. Rather, it comprises an invisible and ever-shifting global nexus where money mixes with geopolitical power, often with great speed and secrecy. Led by cash-flush nations such as China, Kuwait, Abu Dhabi, Singapore, Saudi Arabia, and even Norway, the shadow market is hiring the brightest international financial talent money can buy and is now assembling the gigantic investment portfolios that will form the power structure of tomorrow's economy.

Taking advantage of the Great Recession and subsequent liquidity problems in the United States and Europe, the major players of the shadow market are deploying staggering amounts of cash, controlling the capital markets, and securing not only major stakes in multinational companies but huge tracts of farmland and natural resources across the world. Yet that's not all; they're also pursuing political agendas made possible by their massive wealth and are becoming increasingly aggressive with the United States and other governments. 

Highly informative and genuinely startling, Eric J. Weiner's up-to-date account gets out in front of daily events, with proof of his argument destined to appear in the news for years to come. The Shadow Market moves the conversation from "international competition" to "global financial warfare," and stands as an urgent must-read for anyone interested in the future of the global economy, America's position in the world, or how and where to invest money today.

Editorial Reviews

Review

"Dense and disturbing...Weiner succeeds in making the case that something fundamental has changed in the world with the rise of Eastern and Middle Eastern economies, and that is worth paying attention to." -The New York Times Book Review

"Eric J. Weiner out-hustles the global influence peddlers."  -Vanity Fair

"Alarming...a bleak survey of how flush authoritarian governments deploy financial means to achieve geopolitical ends."  -Bloomberg BusinessWeek

"Unnerving...consistently engaging...a revealing - and troubling - overview of the uses of money and power at the international level."  -Kirkus Reviews

"Does a good job of captivating you."  -Crain's Chicago Business

"Informative, admirably lucid."  -Publishers Weekly

"Weiner explains how the U.S. is ceding dominance to countries with more cash and less debt. His book explains how to succeed as an investor in the world of the shadow market"-Worth

Business and economics journalist Weiner (What Goes Up: The Uncensored History of Modern Wall Street as Told by the Bankers, Brokers, CEOs, and Scoundrels Who Made It Happen, 2005) looks at how wealthy nations in Asia and the Middle East are using shrewd investments to gain power on the international stage.

The author writes that many of these countries have successfully diversified their portfolios in recent years, investing widely in many different industries—most notably in energy-related companies—in countries all around the world. As might be expected, the book focuses heavily on China, which has lately become a worldwide economic powerhouse, as well as America’s largest creditor by far. Weiner looks at how China has used its financial clout to subtly but firmly influence its relations with the United States, as well as many other countries around the world, and he points out how China’s poor record on human rights has largely been diplomatically swept under the rug in the past few years. Middle Eastern countries, meanwhile, have also used their oil-based wealth to gain political advantage. In perhaps the most compelling section, Weiner examines how Libya used its considerable financial influence on the United Kingdom to help get convicted Libyan terrorist Abdel Basset Ali al-Megrahi released from a Scottish prison on compassionate leave in 2009—a move that many around the world, including the U.S. government, considered an outrage. The author reveals the ways that staggeringly wealthy countries are using their money to get what they want, both politically and economically, and his examples are consistently engaging and more than a little unnerving. His description of the U.S. Defense Department’s simulated economic “war games,” for example, in which China always comes out victorious, is an eye-opener. Weiner also examines changing investment strategies elsewhere, particularly Norway, which insists on investing in what it deems ethical companies, and how it is using its influence to try to change the behavior of corporations.

A revealing—and troubling—overview of the uses of money and power at the international level. -Kirkus Reviews

"Informative, admirably lucid." -Publishers Weekly

From the Inside Flap

Acclaimed financial journalist Eric J. Weiner reveals how foreign countries and private investors are increasingly controlling the global economy and secretly wresting power from the United States in ways that our government cannot reverse and about which the average American knows nothing.

The most potent force in global commerce today is not the Federal Reserve, not the international banks, not the governments of the G7 countries, and certainly not the European Union. Rather, it is the multi-trillion-dollar network of super-rich, secretive, and largely unregulated investment vehicles--foreign sovereign wealth funds, government-run corporations, private equity funds, and hedge funds--that are quietly buying up the world, piece by valuable piece.

As Weiner's groundbreaking account shows, the shadow market doesn't have a physical headquarters such as Wall Street. It doesn't have a formal leadership or an index to track or a single zone of exchange. Rather, it comprises an invisible and ever-shifting global nexus where money mixes with geopolitical power, often with great speed and secrecy.

Led by cash-flush nations such as China, Kuwait, Abu Dhabi, Singapore, Saudi Arabia, and even Norway, the shadow market is hiring the brightest international financial talent money can buy and is now assembling the gigantic investment portfolios that will form the power structure of tomorrow's economy.

Taking advantage of the Great Recession and subsequent liquidity problems in the United States and Europe, the major players of the shadow market are deploying staggering amounts of cash, controlling the capital markets, and securing not only major stakes in multinational companies but huge tracts of farmland and natural resources across the world. Yet that's not all; they're also pursuing political agendas made possible by their massive wealth and are becoming increasingly aggressive with the United States and other governments.

Highly informative and genuinely startling, Eric J. Weiner's up-to-date account gets out in front of daily events, with proof of his argument destined to appear in the news for years to come. The Shadow Market moves the conversation from "international competition" to "global financial warfare," and stands as an urgent must-read for anyone interested in the future of the global economy, America's position in the world, or how and where to invest money today.

See all Editorial Reviews

Product Details

• Hardcover: 320 pages
• Publisher: Scribner (September 21, 2010)
• Language: English
• ISBN-10: 143910915X
• ISBN-13: 978-1439109151
• Product Dimensions: 9 x 6.3 x 1.2 inches
• Shipping Weight: 1 pounds (View shipping rates and policies)
• Average Customer Review: 3.8 out of 5 stars  See all reviews (14 customer reviews)
• Amazon Best Sellers Rank: #569,791 in Books (See Top 100 in Books)

More About the Author

Eric J. Weiner has covered business and economics issues for more than 15 years as a writer and editor. A former columnist and Wall Street reporter for Dow Jones Newswires, he has written for The Wall Street Journal, Los Angeles Times, Boston Globe, Village Voice and countless other major publications. He also is a contributor to the online news and opinion website The Huffington Post. He lives in Great Barrington, Massachusetts, with his wife, Paige, and their son, Jake.

Customer Reviews

Most Helpful Customer Reviews

16 of 17 people found the following review helpful:

5.0 out of 5 stars A frightening account of what's REALLY going on in the global economy, September 23, 2010

By 

bklyn21 (Brooklyn, NY) - See all my reviews

This review is from: The Shadow Market: How a Group of Wealthy Nations and Powerful Investors Secretly Dominate the World (Hardcover)

I don't know what the negative reviewer is talking about. I just finished this book and it's not about what sovereign wealth funds are doing. It's about something much more important, what's REALLY happenng in the global economy. And it's really scary. Basically the U.S. is giving up power around the world to rich countries like China and the Middle East. The book's worth buying for the chapter on the Pentagon's economic war games alone. I only hope our leaders in Washington are reading this too.

8 of 8 people found the following review helpful:

5.0 out of 5 stars The Shadow Market, October 14, 2010

By 

DALBY - See all my reviews

Amazon Verified Purchase

This review is from: The Shadow Market: How a Group of Wealthy Nations and Powerful Investors Secretly Dominate the World (Hardcover)

If you feel like something is happening and you can't quite put your finger on it, then you may want to grab a copy of the Shadow Market. Mr Weiner does a great job of connecting the dots on a number of trends that are becoming increasingly obvious.

We all know that China has been growing at a superheated pace for nearly two decades, and that the United States has been living well beyond it's means as indicated by our massive budget defecits. Add the worst economic conditions since the great depression (for us) and voila, you have numbers moving so dramatically that the entire world economy is reshaping faster than our understanding of it.

This book is particualry timely, given the recent undulation in the currency markets and the dawning realization that oil needs to be priced in something other than $.

There is a massive shift in economic power underway. And, it will have consequences.

This book reads like a long newspaper article, in that is is packed with data and numbers in support of the premis. I'm sure the fact checkers worked a lot of overtime on this piece.

I think it is importasnt to note, this is not the same phenomenon we witnessed in the 80's, when a sclerotic US economy was deathly afraid of the Japanese economy and Micheal Keaton made a movie about it. Japan promptly went on to endure a 'lost decade' and the social consequeces of an aging population while our economy grew and prospered. History rhymes, but does not repeat itself. This is another phenomenon altogether: We are about to cede control of world finances from institions we know and understand (The G7, the IMF and The Federal Reserve) to insitutions and societies that are opaque, and sometimes even hostile to the United States.

To pretend this will not have consequences is absurd. But Weiner is the lone voice in the wilderness on this phenomenon! I found this book to be incredibly informative to my understanding of America and her place in the world.

5 of 5 people found the following review helpful:

5.0 out of 5 stars A must-read for anyone interested in what the future holds for the U.S., September 28, 2010

By 

rlh329 - See all my reviews

This review is from: The Shadow Market: How a Group of Wealthy Nations and Powerful Investors Secretly Dominate the World (Hardcover)

This book was an eye-opener about the state of the global economy and where the U.S. is headed in the not-so-distant future. "The Shadow Market" discusses the role of sovereign wealth funds in areas all over the globe, from big players like China and various countries in the Middle East to more unassuming countries like Norway. The chapter on Libya and the Lockerbie bomber was astounding. Not one to often read books on economics or world politics, I found Weiner's narrative writing engaging, and he did a great job explaining complicated issues to a general audience. Whether you're already knowledgeable about global economics and politics or just looking to become more informed (and we all should!), this is a must-read and a book that definitely makes you think.