Dump London's Phony Debts with Glass-Steagall; The Euro is Bankrupt, Not the Drachma

June 18, 2015

With the Greek Parliament's Debt Truth Commission having just found Greece's entire debt to the Troika to be "illegitimate and odious," EIR Founding Editor and economist Lyndon LaRouche yesterday called attention to the "overall picture on euro debt." LaRouche said:

"You cannot sustain the euro system, it is intrinsically bankrupt,"

"If you base a 'debt deal' on that system — any 'debt deal,' that deal will fail. The fraud of what Wall Street and London banks are calling 'their debt assets', has to be eliminated, because populations — not only the Greeks — are being beaten down by worthless claims. Cancel those claims.

"Relieve the nations of the claims of this speculation, these `investments' in gambling bets, and an opening is created for internal economic development of European nations and the United States.

"The solution is an international policy of Glass-Steagall banking; agreements among these nations to implement Glass-Steagall principles.

"Most important by far: Restore the Glass-Steagall Act to force in the United States. That is the driver for this whole effort. That opens up the issuance of national credit for productivity and development."

In an analysis released in late February of this year, LaRouche had already referred to the entirety of what is called "Greek debt" by the euro institutions and the IMF, as a giant swindle, consisting of massive transfer payments from European taxpayers to bankrupt megabanks.

The finding of the Greek Parliamentary Commission sustains that, provides a firm foundation for the Greek government's position, and will also encourage many forces in other falsely overindebted European countries such as Ireland, Spain, Italy, Portugal, and others.

The Debt Truth Commission finds:

"All the evidence we present in this report shows that Greece not only does not have the ability to pay this debt, but also should not pay this debt, first and foremost because the debt emerging from the Troika's arrangements is a direct infringement on the fundamental human rights of the residents of Greece. Hence, we came to the conclusion that Greece should not pay this debt because it is illegal, illegitimate, and odious."

LaRouche also addressed the campaign by forces behind German Finance Minister Wolfgang Schaeuble, to force Greece out of the euro system.

"Again, the euro system is bankrupt. If Greece goes out, goes back to the drachma, the negotiated value of the drachma can be increased significantly, and problems solved. It is not correct to say that the drachma must collapse in value against the euro.

"The pressure on Greece is coming from the London-Wall Street banking system, and the claims of that system are worthless. Its speculation on unpayable debt has to be cancelled.

"The euro will be falling because of its bankruptcy; the value of the drachma against the euro can be maintained, and may go up.

"Again, the critical action is Glass-Steagall in the United States, and force it in European countries.

"With that, the United States and Europe can generate national credit institutions, linked to the BRICS' new international development banks, and issue a surge of credit for productive employment."

LaRouche concluded:

"The Greek Parliament has thus done a service to the future, if we take the right actions now."


SEE "Glass Steagall"



Debt Truth Commission: All the Troika Debt Is Illegitimate

The Debt Truth Commission of the Greek Parliament yesterday issued a preliminary, but extremely important, report on the more than 240-billion-euro debts which the European "Troika" institutions — the European Financial Stability Fund, European Central Bank, and IMF — claim against Greece. After extensive hearings and examination of evidence, the Commission found all of this claimed debt to be illegitimate, and that it should not be paid.

The findings strengthen the Greek government's position against these same institutions' demands for new, and suicidal, economic austerity measures against the Greek population. Furthermore they confirm the analysis published by EIR on behalf of Founding Editor Lyndon LaRouche in late February of this year, which found that the so-called "bailout debt" of Greece was a huge swindle, transferring European taxpayers' funds, via Greek government accounts, to bankrupt megabanks in London and Europe.

The Debt Truth Commission's report, says:

"All the evidence we present in this report shows that Greece not only does not have the ability to pay this debt, but also should not pay this debt first and foremost because the debt emerging from the Troika's arrangements is a direct infringement on the fundamental human rights of the residents of Greece. Hence, we came to the conclusion that Greece should not pay this debt because it is illegal, illegitimate, and odious.

"It has also come to the understanding of the Committee that the unsustainability of the Greek public debt was evident from the outset to the international creditors, the Greek authorities, and the corporate media. Yet, the Greek authorities, together with some other governments in the EU, conspired against the restructuring of public debt in 2010 in order to protect financial institutions. The corporate media hid the truth from the public by depicting a situation in which the bailout was argued to benefit Greece, whilst spinning a narrative intended to portray the population as deservers of their own wrongdoings."

Political forces in other superindebted countries in the Eurozone will also be affected by these findings.

Tsipras Is Ready To 'Say the Big No'

Greek Prime Minister Alexis Tsipras yesterday declared that Greece is prepared to "say the big no" if the so-called creditors continue to make unacceptable demands.

In a speech to parliament, Tsipras said: "I'm certain future historians will recognize that little Greece, with its little power, is today fighting a battle beyond its capacity not just on its own behalf but on behalf of the people of Europe."

Following a meeting with Austrian Chancellor Werner Faymann, Tsipras said the institutions' insistence on increasing revenues from pension cuts is incomprehensible; the Greek government has a specific mandate to reach a sustainable agreement. Tsipras added that he is not contemplating new elections and that it will be the government and the parliament that will take the decision. "If we do not have an honorable compromise, we will once again say the big no," he stressed, reported Athens-Macedonian New Agency (ANA-MPA).

On June 16, in his address to before the Syriza faction MPs, Tsipras laid out three conditions for a settlement. This includes debt relief, no burdening of pensioners and workers, and an end to any discussion about Greece leaving the Eurozone, the "Grexit." He attacked the International Monetary Fund and the EU, saying, "Right now, what dominates is the IMF's harsh views on tough measures, and Europe's insistence on denying any discussion over debt sustainability," Tsipras said, and charged that the IMF bore "criminal responsibility" for the impact of the austerity measures Greece.

Greek Production Reconstruction, Environment and Energy Minister Panagiotis Lafazanis blamed Greece's creditors and institutions Tuesday for the lack of an agreement in the ongoing negotiations.

"The responsibility for the fact that we don't have a deal rests solely on the creditors and the institutions that are not negotiating with the government but are demanding unconditional subordination...The government has clarified that Greece is not a protectorate nor a banana republic, nor willing to subscribe to the extermination of the Greek people. We've made proposals for a deal which is absolutely compatible with our program, which can lift the country on its feet and provide a positive exit from the crisis."

U.S. Treasury Secretary Jack Lew spoke by telephone with Tsipras last night, and recommended that he make a "pragmatic compromise."

Schiller Institute Conference in Paris: "Rebuilding the World in the BRICS Era"

Schiller Institute Conference in Paris:


The following is the text of press release issued by the Schiller Institute on June 17, 2015. The full proceedings of the conference will be available here.

On June 13 and 14, eminent representatives of three of the five countries which make up the BRICS (the five are Brazil, Russia, India, China, and South Africa), — and of countries associated with them, were invited to Paris, to speak at an exceptional international conference of the Schiller Institute on the theme: "Rebuilding the World in the BRICS Era.''

An international audience of over 500 people gathered for the conference of the Schiller Institute in Paris, France.

The aim of this conference, which gathered about 500 people, was to bring to France and to Europe, the winds of progress now blowing over the BRICS and their allies. This will help Europe rise against an international order which has nothing more to offer, other than the return of Empires; the war of all against all; and the systematic looting of populations and public goods.

The conference sharply attacked the Malthusianism spread by the "climate change'' swindle, and the World Summit on Climate (COP 2) currently being organized in France. That Malthusianism is the mortal enemy of the development of the BRICS and of the rest of the planet.

War, or Peace through Economic Development

Helga Zepp-LaRouche, founder and president of the Schiller Institute, keynoted the conference by outlining the perils ahead of us. These are a financial crisis that could rapidly turn into an implosion of the system, as we move towards the final issue of the Greek crisis by the end of June; and the growing threat of war, including nuclear war, against Russia and China. The source for that war drive in the Anglo-American camp is the neo-conservative ideology of the PNAC (Project for a New American Century), which proclaims that no other power should be allowed to rival the global power of the British Empire's Anglo-American relationship.

In that context, Mrs. LaRouche's husband, American political figure and economist Lyndon Larouche, addressed a video message to the conference. In it, he supported the protests of three high-level German figures: two former German Chancellors, Helmut Schmidt and Gerhard Schroeder, and the current Minister of Foreign Affairs, Frank-Walter Steinmeier, — against Chancellor Merkel's refusal to invite Vladimir Putin to the last G7 summit.

Lyndon LaRouche's video address to the June 13-14 conference of the Schiller Institute in Paris, France.

Mrs. LaRouche, however, was optimistic in presenting the BRICS, the New Silk Road of Chinese President Xi Jinping, and the Eurasian Economic Union, as the alternatives to those dangers. She also noted that for at least 25 years, her Institute has been contributing to build those alternatives, by proposing since the time of the fall of the Berlin Wall, an international order of peace through mutual development for the Twenty-First Century, — based on the launching of infrastructure corridors across Eurasia.

Russia, China, and India

The representatives of Russia, China, and India (the only three of the BRICS countries present at the conference, since Brazil and South Africa could not send representatives), gave the conference a sensuous idea of the "polycentric'' world, the embryo of the new, more just international economic order that they are fighting for. It is now coming into being at breathtaking speed. The Ambassador of Iran to France, his Excellency Ali Ahani, also sent a message, indicating that the Islamic Republic of Iran is "willing and ready to cooperate with the BRICS countries in order to contribute its aid and cooperation to the solution of regional and world problems.''

Russia became Acting President of the BRICS in April, and Mr. Leonid Kadyshev, Minister Counsellor of the Russian Embassy in Paris, listed the priorities that the Russian presidency will announce at the upcoming BRICS summit, at Ufa (Russia) on July 9th and 10th.

Before the summit is convened, the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA), adopted at the Fortaleza summit in 2014, will be launched, since their ratification process is "going well,'' he reported. A road map will be adopted defining precise investments in infrastructure projects, as well as a new axis of cooperation in areas such as "mining, energy and communications.''

Professor Shi Ze of the China Institute of International Studies speaks to Schiller Institute conference in Paris, France.

Professor Shi Ze of the China Institute of International Studies, then went through the different goals of China's New Silk Road: solving internal economic imbalances between its eastern and western regions, and improving its foreign trade with its western neighbors (Central Asia, India and Russia). These can contribute to meeting China's great energy needs for its development. But the same "One Belt, One Road,'' strategy, is also China's contribution to the world in the Confucian tradition: to create via "the development of the Eurasian continent;... a new locomotive for growth in the world,'' and to "reinforce peace and worldwide security.''

An important contribution followed from Indian former Ambassador Viswanathan, Senior Fellow at the Observer Research Foundation, who is the coordinator of all its activities connected with the BRICS. In view of the fact that the BRICS represent 25% of the world's GDP, but only 11% of the voting rights in the IMF, he denounced the "completely anachronistic character... of the IMF, the World Bank and the Security Council of the UN.''

Rather than only aspiring for a better order, the BRICS have now become an active force, setting the international agenda so as to bring that order into being. Two examples are the creation of the NDB, and that of the Contingent Reserve Arrangement (CRA), which Mr. Viswanathan pointed to as the first world institutions created in 200 years without the participation of the West.

The future is "looks bright'' for the BRICS, he said, adding however that "the BRICS is work in progress and not a finished product.''

An international audience of over 500 people gathered for the conference of the Schiller Institute in Paris, France.

The two days of intense discussions hundreds of Frenchmen and delegations involved from Germany, Denmark, Sweden, Spain, Italy, Australia, Poland, Rumania, Russia, China, and Peru, among other countries. Participants understood that they were not attending any ordinary conference, but rather were participating in an ongoing international fight for their survival and that of the human race. Many decided to engage actively, and become the authors of their own destiny.

Video of the conference proceedings as well as a full transcript will be available over the coming days. The full program of the conference follows:


International Conference of the Schiller Institute · Paris, 13-14 June 2015


Helga Zepp-LaRouche, chairwoman of the Schiller Institute

The speakers, who hold government or institutional positions, and some of whom have participated in the negotiation process leading to the BRICS, all speak in a personal capacity.

The New Silk Road and the BRICS: A New Paradigm for Civilization

Moderator: Christine Bierre, journalist, Paris

Leonid Kadyshev, Minister Counsellor of the Russian Embassy in France

Prof. Shi Ze, Senior Research Fellow and Director of International Strategic Studies on Energy of the China Institute of International Studies (CIIS), a think-tank of the Foreign Ministry, Beijing

H.E. Ambassador H.H.S. Viswanathan, Distinguished Fellow, Observer Research Foundation. Coordinator of all activities connected with BRICS and IBSA (India, Brazil, South Africa, New Delhi)

H.E. Ali Ahani, Ambassador of Iran in France

Eradicating the Geopolitics of War by Pursuing the Common Aims of Mankind

Moderator: Elke Fimmen, Schiller Institute, Germany

Denys Pluvinage, consultant to the French-Russian Dialogue, Paris

Jean-François Di Meglio, President ASIA Centre, Paris

Jayshree Sengupta, Economist, observer Research Foundation, New Delhi, India

Colonel (ret.) Alain Corvez, International Strategy Consultant. Former International Relations Consultant of the Defense and Interior Ministries, Paris

Stelios Kouloglou, Journalist, Writer, and Member of European Parliament, Syriza, Greece

Great Infrastructure Projects Are the Only Real Alternative

These experts have all been personally involved in the design, feasibility studies and development of international infrastructure programs.

Moderator: Rainer Apel, Executive Intelligence Review, Wiesbaden, Germany

Christine Bierre, Journalist, Paris

Jean-Pierre Gerard, Economist, Entrepreneur, former member of the Economic Council of the Bank of France, Paris

Hussein Askary, Middle East Director of the Schiller Institute, Stockholm

Prof. Safieeldin Mohamed Metwally, The National Center for Desert Research, Ciaro, Egypt

Acheikh Ibn-Oumar, former Foreign Minister of Chad, Reims


Various instrumental works by Johann Sebastian Bach and Ludwig van Beethoven

Choral works by Franz Schubert and Wolfgang Amadeus Mozart


Jacques Cheminade, President of Solidarité & Progrès, Paris

Public Credit and Debt Cancellation, The Political Challenge for Europe

The speakers are aware that European nations must join the BRICS dynamic, bringing with them the best of their respective cultures and historical achievements to expand the scope. The crucial issue is to put the end to monetarism and establish a public credit system both nationally and internationally to finance great infrastructure projects.

Moderator: Karel Vereycken, Journalist, Paris, France

Karel Vereycken, Journalist, Paris, France

Dean Andromidas, Executive Intelligence Review, Wiesbaden, Germany

Diogène Senny, Secretary General of the Pan-African League-UMOJA, Toulouse

Prof. Mohamed Ali Ibrahim, Dean of the Transport and Logistics Institute, Chairman of the Arab League Academy of Science and Technology, Port Said, Egypt


Maurice Gourdault-Montagne, French Ambassador to China

Rep. Walter Jones (R-NC), Member of the United States House of Representatives from North Carolina

Sen. Richard Black (VA-13), State Senator for 13th Senate District in Virginia State Senate, United States

Leonidas Chrysanthopoulos, Greek Diplomat, former Secretary General of Organization of the Black Sea Economic Cooperation (BSEC), Athens, Greece

Metin Apti, founder and president of the Silk Road Association of Romania

Tatiana Seliverstova, director of the International Center for Cooperation of the Russian Union of Youth

Chandra Muzaffar, President of the International Movement for a Just World (JUST), Malaysia

Liliana Gorini, president of Movimento per i Diritti Civili e la Solidarietà (MoviSol), Italy

Jean Verstappen, former Belgian Senator, President of the Royal Fraternal General Patton 11th Battalion of Fusiliers, secretary of "Encounters for Peace", Belgium

Charles Paperon, former volunteer resistance fighter, Brest, France

Manfred Osten, Humboldt Foundation, Germany

Marcello Vichi, engineer, former head of African Transaqua project, Italy

Giulio Sapelli, Enrico Mattei Foundation, Italy

Lyndon H. LaRouche, Jr., Physical Economist, founding editor of Executive Intelligence Review magazine

A New Scientific and Cultural Renaissance is the Key to Our Future

Countering the hypocrisy and the unrealistic vision of the Paris World Climate Summit (COP21), the speakers will develop the real reasons for climate change and how human society has to master the dynamics involved for their mutual benefit, starting from an overall solar and galactic perspective.

Moderator: Odile Mojon, Schiller Institute, Paris, France

Maëlle Mercier, Schiller Institute, Paris, France

Benjamin Deniston, LaRouchePAC Scientific Research Team, Washington, DC

Prof. François Gervais, Professor Emeritus of the François Rabelais University, Tours, Critical Rapporteur to the IPCC-ARS5 (International Panel on Climate Change), Tours

Prof. Carl-Otto Weiss, Advisor to the European Institute for Climate and Energy; Former President of the National Meteorology Institute of Germany, Braunschweig.


Creating a New Renaissance

Helga Zepp-LaRouche, chairwoman of the Schiller Institute


SEE "New Economic Order"