THE capital is now under siege from the waters slithering down from the north towards the Gulf of Thailand. Shops, businesses and government offices in Bangkok cower behind makeshift concrete parapets and piles of sandbags. Bridges and elevated expressways are filling up with fleets of parked cars, to spare them from the deluge below. And all the time people speculate about just how bad it might get in a city the Europeans once called the Venice of Asia.

Despite the defences, there is likely to be some flooding. The government desperately wants to divert water around the capital, to east and west, but the volume is too great. The desire to save densely populated Bangkok is understandable. But the strategy is angering those in the northern suburbs, where neighbourhoods are filling up with water as the sluice gates remain closed. An admirable steadfastness among Thai people is wearing thin.

AS PROTESTS against financial power sweep the world this week, science may have confirmed the protesters' worst fears. An analysis of the relationships between 43,000 transnational corporations has identified a relatively small group of companies, mainly banks, with disproportionate power over the global economy.

The study's assumptions have attracted some criticism, but complex systems analysts contacted by New Scientist say it is a unique effort to untangle control in the global economy. Pushing the analysis further, they say, could help to identify ways of making global capitalism more stable.

The idea that a few bankers control a large chunk of the global economy might not seem like news to New York's Occupy Wall Street movement and protesters elsewhere (see photo). But the study, by a trio of complex systems theorists at the Swiss Federal Institute of Technology in Zurich, is the first to go beyond ideology to empirically identify such a network of power. It combines the mathematics long used to model natural systems with comprehensive corporate data to map ownership among the world's transnational corporations (TNCs).

"Reality is so complex, we must move away from dogma, whether it's conspiracy theories or free-market," says James Glattfelder. "Our analysis is reality-based."

Previous studies have found that a few TNCs own large chunks of the world's economy, but they included only a limited number of companies and omitted indirect ownerships, so could not say how this affected the global economy - whether it made it more or less stable, for instance.

The Zurich team can. From Orbis 2007, a database listing 37 million companies and investors worldwide, they pulled out all 43,060 TNCs and the share ownerships linking them. Then they constructed a model of which companies controlled others through shareholding networks, coupled with each company's operating revenues, to map the structure of economic power.

The work, to be published in PLoS One, revealed a core of 1318 companies with interlocking ownerships (see image). Each of the 1318 had ties to two or more other companies, and on average they were connected to 20. What's more, although they represented 20 per cent of global operating revenues, the 1318 appeared to collectively own through their shares the majority of the world's large blue chip and manufacturing firms - the "real" economy - representing a further 60 per cent of global revenues.

When the team further untangled the web of ownership, it found much of it tracked back to a "super-entity" of 147 even more tightly knit companies - all of their ownership was held by other members of the super-entity - that controlled 40 per cent of the total wealth in the network. "In effect, less than 1 per cent of the companies were able to control 40 per cent of the entire network," says Glattfelder. Most were financial institutions. The top 20 included Barclays Bank, JPMorgan Chase & Co, and The Goldman Sachs Group.

John Driffill of the University of London, a macroeconomics expert, says the value of the analysis is not just to see if a small number of people controls the global economy, but rather its insights into economic stability.

Concentration of power is not good or bad in itself, says the Zurich team, but the core's tight interconnections could be. As the world learned in 2008, such networks are unstable. "If one [company] suffers distress," says Glattfelder, "this propagates."

"It's disconcerting to see how connected things really are," agrees George Sugihara of the Scripps Institution of Oceanography in La Jolla, California, a complex systems expert who has advised Deutsche Bank.

Yaneer Bar-Yam, head of the New England Complex Systems Institute (NECSI), warns that the analysis assumes ownership equates to control, which is not always true. Most company shares are held by fund managers who may or may not control what the companies they part-own actually do. The impact of this on the system's behaviour, he says, requires more analysis.

Crucially, by identifying the architecture of global economic power, the analysis could help make it more stable. By finding the vulnerable aspects of the system, economists can suggest measures to prevent future collapses spreading through the entire economy. Glattfelder says we may need global anti-trust rules, which now exist only at national level, to limit over-connection among TNCs. Sugihara says the analysis suggests one possible solution: firms should be taxed for excess interconnectivity to discourage this risk.

One thing won't chime with some of the protesters' claims: the super-entity is unlikely to be the intentional result of a conspiracy to rule the world. "Such structures are common in nature," says Sugihara.

Newcomers to any network connect preferentially to highly connected members. TNCs buy shares in each other for business reasons, not for world domination. If connectedness clusters, so does wealth, says Dan Braha of NECSI: in similar models, money flows towards the most highly connected members. The Zurich study, says Sugihara, "is strong evidence that simple rules governing TNCs give rise spontaneously to highly connected groups". Or as Braha puts it: "The Occupy Wall Street claim that 1 per cent of people have most of the wealth reflects a logical phase of the self-organising economy."

So, the super-entity may not result from conspiracy. The real question, says the Zurich team, is whether it can exert concerted political power. Driffill feels 147 is too many to sustain collusion. Braha suspects they will compete in the market but act together on common interests. Resisting changes to the network structure may be one such common interest.

When this article was first posted, the comment in the final sentence of the paragraph beginning "Crucially, by identifying the architecture of global economic power…" was misattributed.
The top 50 of the 147 superconnected companies

1. Barclays plc
2. Capital Group Companies Inc
3. FMR Corporation
4. AXA
5. State Street Corporation
6. JP Morgan Chase & Co
7. Legal & General Group plc
8. Vanguard Group Inc
9. UBS AG
10. Merrill Lynch & Co Inc
11. Wellington Management Co LLP
12. Deutsche Bank AG
13. Franklin Resources Inc
14. Credit Suisse Group
15. Walton Enterprises LLC
16. Bank of New York Mellon Corp
17. Natixis
18. Goldman Sachs Group Inc
19. T Rowe Price Group Inc
20. Legg Mason Inc
21. Morgan Stanley
22. Mitsubishi UFJ Financial Group Inc
23. Northern Trust Corporation
24. Société Générale
25. Bank of America Corporation
26. Lloyds TSB Group plc
27. Invesco plc
28. Allianz SE 29. TIAA
30. Old Mutual Public Limited Company
31. Aviva plc
32. Schroders plc
33. Dodge & Cox
34. Lehman Brothers Holdings Inc*
35. Sun Life Financial Inc
36. Standard Life plc
37. CNCE
38. Nomura Holdings Inc
39. The Depository Trust Company
40. Massachusetts Mutual Life Insurance
41. ING Groep NV
42. Brandes Investment Partners LP
43. Unicredito Italiano SPA
44. Deposit Insurance Corporation of Japan
45. Vereniging Aegon
46. BNP Paribas
47. Affiliated Managers Group Inc
48. Resona Holdings Inc
49. Capital Group International Inc
50. China Petrochemical Group Company

If you have ever wondered about the government’s ability to control the civilian airwaves, you will have your answer on November 9th.

On that day, federal authorities are going to shut off all television and radio communications simultaneously at 2:00PM EST to complete the first ever test of the national Emergency Alert System (EAS).

This isn’t a wild conspiracy theory. The upcoming test is posted on the Public Safety and Homeland Security Bureau website.

Only the President has the authority to activate EAS at the national level, and he has delegated that authority to the Director of FEMA. The test will be conducted jointly by the Department of Homeland Security (DHS) through FEMA, the Federal Communications Commission (FCC), and the National Oceanic and Atmospheric Administration’s (NOAA) National Weather Service (NWS).

In essence, the authority to seize control of all television and civilian communication has been asserted by the executive branch and handed to a government agency.

The EAS has been around since 1994. Its precursor, the Emergency Broadcast System (EBS), started back in 1963. Television and radio broadcasters, satellite radio and satellite television providers, cable television and wireline video providers are all involved in the system.

So this begs the question: is the first ever national EAS test really a big deal?

Probably not. At least, not yet.

But there are some troubling factors all coming together right now that could conceivably trigger a real usage of the EAS system in the not too distant future. A European financial collapse could bring down U.S. markets. What is now the “Occupy” movement could lead to widespread civil unrest. And there are ominous signs that radical groups such as Anonymous will attempt something major on November 5th- Guy Fawke’s day.

Now we know in the event of a major crisis, the American people will be told with one voice, at the same time, about an emergency.

All thats left to determine is who will have control of the EAS when that day comes, and what their message will be.

Ok, those Germans are just showing off now. Not only has the nation announced plans to shut down all of its nuclear power plants and started the construction of 2,800 miles of transmission lines for its new renewable energy initiative, but now the village of Wildpoldsried is producing 321% more energy than it needs! The small agricultural village in the state of Bavaria is generating an impressive $5.7 million in annual revenue from renewable energy.

It’s no surprise that the country that has kicked butt at the Solar Decathlon competition (to produce energy positive solar houses) year after year is the home to such a productive energy-efficient village. The village’s green initiative first started in 1997 when the village council decided that it should build new industries, keep initiatives local, bring in new revenue, and create no debt. Over the past 14 years, the community has equipped nine new community buildings with solar panels, built four biogas digesters (with a fifth in construction now) and installed seven windmills with two more on the way. In the village itself, 190 private households have solar panels while the district also benefits from three small hydro power plants, ecological flood control, and a natural waste water system.

All of these green systems means that despite only having a population of 2,600, Wildpoldsried produces 321 percent more energy than it needs – and it’s generating 4.0 million Euro (US $5.7 million) in annual revenue by selling it back to the national grid. It is no surprise to learn that small businesses have developed in the village specifically to provide services to the renewable energy installations.

Over the years the village’s green goals have been so successful that they have even crafted a mission statement — WIR–2020, Wildpoldsried Innovativ Richtungsweisend (Wildpoldsried Innovative Leadership). The village council hopes that it will inspire citizens to do their part for the environment and create green jobs and businesses for the local area.

As a result of the village’s success, Wildpoldsried has received numerous national and international awards for its conservation and renewable energy initiatives known as Klimaschutz (climate protection). The council even hosts tours for other village councils on how to start their own Klimaschutz program. The Mayor has even been doing global tours ever since the Fukushima disaster.

Mayor Zengerle has gone to Romania, Berlin and the Black Sea Region to speak about how these places can transform their communities and make money in the process. Speaking to Biocycle, Mayor Zengerle said, “The mitigation of climate change in practice can only be implemented with the citizens and with the Village Council behind them 100 percent of the way. This model cannot be forced from only one side. We often spend a lot of time talking to our visitors about how to motivate the village council (and Mayor) to start thinking differently. We show them a best practices model in motion and many see the benefits immediately. From the tour we give, our guests understand how well things can operate when you have the enthusiasm and conviction of the people.”