Sweep Aside the Madness of the Bankrupt System; Mobilize for Glass-Steagall!

July 8, 2015

The turning point facing mankind couldn't have been shown more clearly than in the two contrasting dynamics on Wednesday. On the one hand, was the spectacle of the brawl in the European Parliament that followed the speech of Greek Prime Minister Alexis Tsipras. On the other, is the forward looking process coming together in Ufa, Russia, at the summit meeting of the BRICS nations, where the new potential for mankind is coming together.

The unraveling of the bankrupt trans-Atlantic system is truly driving the functionaries of the dying system mad. Witness the utter freakout after Greek Prime Minister Tsipras presented the case, backed by the overwhelming vote of the Greek people, that all the efforts to save the British Empire's Euro system by killing Greece have failed. Tsipras demanded that Europe face the reality and write down the debts. Devoid of any rational response, the so-called proponents of "European Unity" hurled insults, calling Tsipras a liar and demanding that Greece sacrifice itself for the good of the 'lost cause.'

Meanwhile, a far different mood of cooperation for the common interest of mankind is coming together as the BRICS and SCO summits get underway. The warm greetings of Russian President Putin and Chinese President Xi exemplify the spirit of cooperation for progress which can form the basis for Man's continuing role in the galaxy. The real working meetings of the summit will take place tomorrow, but already in the preparatory meetings, agreements for cooperation in space and rail among the BRICS and other nations, indicate the actual basis for mankind's future.

But for progress to proceed, the bankrupt system must be finally put out of its misery. And that means the immediate implementation of Glass-Steagall, which was just reintroduced yesterday into the U.S. Senate.

In a discussion with the LaRouchePAC Policy Committee today, LaRouche emphasized that we can't solve the problem unless we close down Wall Street.

LaRouche said:

"It must be put into terminal bankruptcy.

"Greece didn't cause the problem...The British trans-Atlantic system created this problem. You have to remove the cause of the problem. Glass-Steagall is one step of that... Now we have to go back to Glass-Steagall to get the United States to survive, now that the actual bankruptcy has exploded."

"Everyone who wants to survive wants to get out this system...But under the current rules and plans, and the conditioning of the minds of people, we don't know how to get out of the system. I do! I have to be a part of the initiatives, in the trans-Atlantic region in particular, to do two things: to get the trans-Atlantic system out of hopeless bankruptcy and also thermonuclear war, which is waiting around the corner right now. And Obama is the British-controlled element which is now pushing thermonuclear war. Unless we do something about it."

LaRouche has been at the center of this fight since he defeated the British representative, Abba Lerner, in a debate in Brooklyn, NY, in 1971. That is why he was railroaded into prison. Then, the repeal of Glass-Steagall, as Bill Clinton was being driven out of office, set in motion the process that led to the complete bankruptcy of the United States and the trans-Atlantic system.

LaRouche has known since before the 1970's what had to be done to prevent the bankruptcy of the system that has been unfolding ever since. The question now is,

"Who? What rare group of people have the brains to know actually what to do about the situation now? There's no isolatable factor which is going to do a damn thing, unless we make certain changes which I am proposing and have been proposing. In other words, you cannot replace one part of the engine of the automobile. The whole automobile is a piece of wreckage and there is nothing left in it. Now you have to rebuild a new mechanism.

The first step toward that new mechanism occurred, under great pressure, by members of the U.S. Congress who voted up the revival Glass-Steagall law. The revival of Glass-Steagall on an extended application, is the remedy. So if you want to survive, get Glass-Steagall under full action, beginning yesterday!"



Tsipras Takes On Eurofascists in European Parliament

The European Parliament split between enthusiastic and hysterical reactions to Alexei Tsipras's speech before the plenary session yesterday. Tsipras stressed that the "no" vote in the referendum was an extraordinary event: "The Greek people made a brave choice, under unprecedented pressures, with the banks being closed, with the majority of the media attempting to terrorize people that a NO vote would lead to a rupture with Europe," he said.

"We should all acknowledge that the primary responsibility for the difficulties that the Greek economy is experiencing today, for the difficulties that Europe is experiencing today, is not the result of choices made in the last five months, but in the five years of implementing programs that did not end the crisis. I want to assure you that, regardless of one's opinion whether the reform efforts were right or wrong, the fact remains that Greece, and the Greek people, made an unprecedented effort to adjust over the last five years. Extremely difficult, and tough. This effort has exhausted the stamina of the Greek people.

"...Nowhere else were these programs so difficult and long-lasting as in Greece. It would not be an exaggeration to say that my country has been transformed into an experimental austerity laboratory for the last five years. But we must all admit that the experiment did not succeed....

"I want to be very clear on this point: the Greek government's proposals to finance its obligations and restructure its debt are not intended to further burden the European taxpayer. The money given to Greece—let's be honest—never actually reached the Greek people. It was money given to save the Greek and European banks—but it never went to the Greek people."

Whereas Tsipras earned support from the UK Independence Party's Nigel Farage and the French Front National's Marine Le Pen, and a non-belligerent attitude from the Socialists, conservative and liberal spokesmen were hysterically aggressive.

Former Belgian Premier Guy Verhofstadt, a major actor in the Maidan coup, started to accuse Syriza of being complicit in the clientelistic system of Greek politics. He lectured Tsipras on the reforms he has to carry out, cutting down the public sector and reforming the financial system.

Manfred Weber, leader of the European People's Party faction, accused Tsipras of "destroying confidence in Europe." "You are not telling your people the truth. That is not dignified politics. You are surrounding yourself with the wrong friends" he said referring to the letter Fidel Castro wrote to the Greek Prime Minister. He then lectured Tsipras on the rights of the smaller, poorer countries of the Eurozone who will have to pay for the Greeks' profligacy. "How can you tell Bulgaria that Greece can't countenance any further cuts, when in at least five EU countries the standards of living are lower than Greece?"

In his reply, Tsipras addressed Weber directly: "The most important moment of solidarity in modern European history, was in 1953, when your country emerged deeply in debt and looted by two world wars — and in Europe, the European peoples, showed the greatest solidarity at the London Conference in 1953, when they decided to write off 60% of Germany's debt, as well as growth clauses."

As for reforms, he countered false accusations that Greece had not presented reforms by saying it in fact presented a 47-page document saying,

"It is the sovereign right of a government to choose whether to increase taxation on profit-making businesses and to not cut the benefits to the lowest pensions, the EKAS, in order to meet fiscal targets. If it is not the right of a sovereign government to choose in what way it will find equivalent measures to cover the required targets, then we must adopt an extreme and anti-democratic view. That in the countries that are in a program there must be no elections. That governments must be appointed, technocrats must be appointed and that they assume responsibility for the decisions."

Senate Bill Ignites Glass-Steagall Battle in U.S.

Within minutes of Sen. Elizabeth Warren's announcement on Tuesday afternoon, that she and three co-sponsors had re-introduced their "21st Century Glass Steagall Act," the City of London's Financial Times published an understated note from their Washington, D.C., correspondent ("U.S. Senators Plot Glass-Steagall Resurrection"), admitting that while London counts on the Republicans to block the bill, it "will cause concern among big 'universal' banks."

Too bad for Wall Street and London. Representatives of broader U.S. social forces were already jumping into action to get Congress to enact Glass-Steagall, now that both the Senate and House have bills before them. As American patriot Lyndon LaRouche, upon hearing the news, said would happen, the Senate action touched off an "igniting process," which can't be closed off. "Once people are told that Glass-Steagall is available, you're going to have a shock effect," including "a panic on Wall Street ... [which will set] the pigs stampeding through the halls and streets of Manhattan," LaRouche chuckled.

Democratic Presidential pre-candidate Martin O'Malley quickly tweeted his "thanks" to sponsors Warren, McCain, Cantwell, and King "for reintroducing Glass-Steagall. It's essential in preventing another crash." Inside-the-beltway daily The Hill featured how the "Warren Bill Could Create Headache for Hillary." Progressive Change Campaign Committee co-founder Adam Green told The Hill that the bill's introduction was "great news... Wall Street reform should be among the economic populist issues at the center of the 2016 debate." Glass-Steagall-backer Robert Borosage of Campaign for America's Future pointed out that "we don't know where Hillary [clinton] stands... You can't be a 'champion of everyday people' and duck taking a stand on fundamental challenges facing the country."

Labor weighed in, with AFL-CIO Secretary General Richard Trumka issuing a statement declaring,

"[w]e applaud the reintroduction of the 21st Century Glass-Steagall Act, which will help restore our out-of-balance economy so that it works for working families... Now is the time to change the rules and close loopholes that enable the big Wall Street banks to benefit themselves and increase their political power..."

Americans for Financial Reform (AFR), representing a coalition of numerous national and state organizations "joined together to fix our financial sector," had a statement out within an hour ("The Case for the 21st Century Glass Steagall Act Is Stronger than Ever"), backing the Senate action to "restore the historic division between traditional (or commercial) banking world and the casino world of trading and speculating."

The "people's voice" lobbying group, Public Citizen, like the AFL-CIO a member of the AFR and involved in collecting more than 700,000 signatures on a petition for Glass-Steagall last year, "enthusiastically" welcomed Glass-Steagall's re-introduction into the Senate, writing: "Reckless banking caused the financial crash of 2008, which drained more than $12 trillion from the economy and cost millions of Americans their jobs, homes and life savings. This sensible legislation will help prevent a repeat calamity."

Warren's press release announcing the reintroduction is also quickly being picked up in local press, Tea Party blogs, and the like, around the country.