No Token Solutions Exist - Failure to Create a New Financial System Now Will Mean War

July 19, 2016
The Nimitz-class aircraft carriers USS John C. Stennis and USS Ronald Reagan conduct dual aircraft carrier strike group operations in the U.S. 7th Fleet area of operations in the Philippine Sea, July 17, 2016. [flickr/usnavy]

The European leadership is panicked about the rapid collapse of the banking system. Italy is blaming Germany and Deutsche Bank, Germany is blaming Italy, while Wall Street complains about the Europeans undermining the fake "recovery." This is dangerous and psychotic nonsense. We are experiencing the breakdown of the entire trans-Atlantic banking system, not just some part of it, and no solution exists outside of the immediate creation of laws in Europe and the US to facilitate a new, Hamiltonian financial and economic order. The $2 quadrillion in derivative gambling debt must be written off, and the commercial banking system recapitalized to do its legitimate job, directing credit into reconstructing the world economy.

The fact that both the Republican and Democratic parties have placed passage of Glass-Steagall into their electoral platforms has sent Wall Street into conniptions, terrified that, as Barrons reports, "there is an unappreciated risk that Glass-Steagall could be reimposed in 2017 or 2018, regardless of who wins." The fact is, the momentum for Glass-Steagall is not coming from the already failed candidates, nor from the failed parties they represent, but from a shift in thinking in the population in the direction of the LaRouche movement's decades long fight for Glass Steagall.

The same is true of the release of the 28 pages on the Saudi role in international terrorism, a fight led by the LaRouche movement. The population had been lulled to sleep about the danger of Bush and Obama's overt support for terrorists to achieve their "regime change" objectives, and also about the reality of the economic disintegration of the entire western financial system under the casino approach to banking. Now that neither can be covered up, the truth is finally in the public eye.

As the emergency statement of July 12 by Helga Zepp-Larouche states about the pending collapse of Deutsche Bank, there must be "an immediate reorientation of the bank, back to its tradition which prevailed until 1989 under the leadership of Alfred Herrhausen." Mrs. LaRouche emphasized Monday that Herrhausen was assassinated in 1989 because he was responding to the unfolding collapse of the Soviet Union with a new policy, based on a higher concept of Man and Mankind's common aims. He posed an immediate mobilization of the Western economies to launch infrastructure and industrial reconstruction in Poland, and eventually across Eurasia — precisely as Lyndon LaRouche had identified in his famous Kempinsky Hotel press conference in Berlin in October 1988.

The British Empire and its satrapies could not tolerate that new paradigm, and with Herrhausen's elimination, launched the transformation of Europe into a centralized dictatorship under the 1992 Maastricht Treaty, under a banking system which put profit maximization through speculation ahead of human development, while provoking endless wars. That process has now brought the entire system to ruin.

Lyndon LaRouche today reiterated that Germany, the US, and every other Western nation must immediately create new legislation to change the system — the entire system — back to Hamiltonian banking of the sort which Herrhausen practiced, and begin immediately generating credit to the full carrying capacity of the national economies of the trans-Atlantic region.

While the dangers are multiplying — of terrorism, war, financial collapse — so also are the breakthroughs, as with Glass-Steagall and the 28 pages. With China and Russia leading the world towards a new paradigm based on global development and cooperation against terrorism, now is the time to turn the US back to its Hamiltonian roots, to join with our natural allies, Russia and China, as we did in defeating fascism in World War II, and as we must in defeating the new fascism today coming from the City of London and Wall Street.

I'm in, keep me connected.



Glass-Steagall on U.S. Election Agenda; Wall Street Is Not Happy

The Republican Party convention's passage Monday of a Glass-Steagall plank for its platform, featured by Donald Trump campaign manager Paul Manafort at his press conference, following upon the Democratic Party Platform Committee's unanimous vote to include passage of Glass-Steagall in its platform, has set bank lobbyists into high gear, and generated a wave of teeth-knashing in Wall Street's press. Every outlet from the Wall Street Journal to Barrons, to The American Banker, and in-between, ranted against the proposal to reinstate FDR's Glass-Steagall law. After all Wall Street had done to rig arguably the worst presidential election in U.S. history!

Amidst the refrain that political platforms are non-binding and often don't get implemented, Wall Street has to acknowledge that restoration of Glass-Steagall has been adopted by both parties, not because of the parties, and certainly not because of their candidates, but because it is a burning national sentiment.

The Hill wrote: "The embrace of Glass-Steagall by both parties is a telling indication of how unpopular Wall Street remains with the public, years after the financial crisis..."

Bloomberg, too, admitted that the Republican Party plank should not come as a "total surprise, given there's little love of global investment banks in Washington right now."

Barrons acknowledged: "The Democrats and Republicans are in agreement on one thing in this presidential election, and of all things, it's about banking regulations. Both parties, it seems, are calling for a return of Glass-Steagall, a Depression-era banking law whose repeal in 1999 is credited by some for causing the financial crisis."

Politico quotes two reporters from the Financial Times on how Wall Street is now "on edge... Presidential candidates do not have to follow party platforms, but big banks will be troubled by the cross-party support for legislation inspired by the 1933 Glass-Steagall act because such ideas can gain a life of their own once in official documents. Any prohibition barring investment bankers from operating under the same roof as federally insured deposits would pose an existential challenge to Citigroup, JPMorgan, Bank of America, Wells Fargo and, to a lesser extent, Goldman Sachs."

So, too, Keefe, Bruyette & Woods investment bank's Brian Gardner issued a note warning that Wall Street should not dismiss the possibility of Glass-Steagall being adopted: "There could be a unique political coalition forming to make changes to Dodd-Frank while at the same time reinstating the old separation between commercial and investment banking... There is an unappreciated risk that Glass-Steagall might be reimposed in 2017 or 2018... regardless of who wins the presidential election."

Meanwhile, take note that with the July 14th addition of Sen. Jeff Merkley (D-OR) as a co-sponsor of S1709, one tenth of the U.S. Senate is now co-sponsoring the Senate bill to restore Glass-Steagall.