THE LEAD

                                                                                                                                                                                                                                                                                        

With Which Germany, Can Europe Have a Future?

July 19, 2016
Angela Merkel and world leaders meet at the G20 meeting in Australia, 2014. [Photo: Agência Brasil/Roberto Stuckert Filho]

For the past two weeks we have put forward — as an indispensable action to be taken, now, in this economic and cultural crisis — Lyndon and Helga LaRouche's proposal to save Deutsche Bank from looming bankruptcy, to avoid world war. Because Germany's economy is the only one with the productive potential to save the wreck of Europe, by linking with China's great New Silk Road project to develop Eurasia, the Middle East, Africa.

Otherwise there will be war with China, or with Russia. The Obama White House is steadily trying to provoke war confrontations with both Russia and China, and demanding that Europe push those provocations, through NATO. If the terrorist splinters of Obama's Mideast and Libya wars are bombing Europe into a state of shock, they have his sympathies, as long as they continue to join in military confrontations with Russia and China. Hillary Clinton is just as determined on this war policy.

There is no question, especially after Brexit, that Germany is Europe's future. But if it is Angela Merkel's and Wolfgang Schaeuble's Germany, adulterated with the even more warlike Green Party, there will be world war.

Thus the LaRouches proposed: It must be the Germany of Alfred Herrhausen, the assassinated head of the once-productive but now wretched and criminal giant, Deutsche Bank. Specifically, the Alfred Herrhausen who in 1989 was launching a development bank to lift up Poland and the Soviet East economically as the Soviet Union collapsed — and he was murdered.

Herrhausen's plan then for Deutsche Bank and Germany, was a paradigm of what Germany can again be, as Europe's future now.

The trans-Atlantic banking and financial system is falling apart. It is the victim of its own members, the City of London-centered European and Wall Street megabanks, which have crushed the real productive economies underneath them over decades of globalization. The trigger for the imminent crash is not simply Italian banks' bad loans, or London property funds closing down, or the big German and Swiss banks in trouble, or even the ECB and Federal Reserve's crazy policies; but the destruction of the productivity of the underlying economies over decades while the casino has boomed on top of them.

If the failing megabanks of Europe are to be recapitalized, they must be made to write off their casinos as total losses, and re-adopt the productive purposes epitomized by Herrhausen's leadership of Deutsche Bank. Then, national credits can be generated, in the way China alone has done in this century, for the kind of projects which resuscitate the productivity of human beings and economies.

In the two weeks we have put forward this indispensable proposal by LaRouche, there have been important breaks in the United States. The "Saudi chapter" of the story of 9/11 has finally been forced out.

Glass-Steagall restoration has been put into the Presidential platforms of both Democrats and Republicans.

But the way to fight for Glass-Steagall reorganization of the banks, is with the "lever" of LaRouche's proposal. Then this fight becomes one for a future for Europe and the United States as well.

                                                                                                                                                                                                                                                                                        

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Campaign's Effects: FAZ Writes on Deutsche Bank/Herrhausen History

In the midst of the LaRouche campaign to save Deutsche Bank, close down its casino, and turn it back into Alfred Herrhausen's bank, a very long article appeared July 18 in the Frankfurter Allgemaine Zeitung, "Deutsche Bank's Last Chance," a discussion of what has happened to the bank since Herrhausen's assassination in 1989.

LaRouchePAC in Manhattan organizing for a controlled reorganization and recapitalization of Germany's leading bank.

The article, by the FAZ's financial markets editor Gerald Braunberger, does not discuss the European bank crisis, the world economy, or the threat of Deutsche Bank's immediate insolvency, but has a different purpose: recapping the debate within and around the bank over the past 25 or more years, as to what it should be.

Herrhausen, as Deutsche Bank's CEO, reports Braunberger, referred to the "Anglo-Saxon financial culture" as "what we do not have" at his bank. Mixing that culture with German industrial bank culture since Herrhausen's death has created great tension, he writes, and has had very bad results.

Immediately after Herrhausen's death, Deutsche Bank under Chairman Hilmar Kopper still wanted to acquire a large share in the big Bavarian commercial lender, Bayerische Vereinsbank, anchoring it as a German industrial lending bank. The Bavarian government, instigated by Allianz Insurance, which was moving in on BV, blocked that. Instead, during the 1990s Deutsche Bank acquired the Wall Street investment firm Bankers Trust — which launched it massively into manipulation of mortgage-backed securities and their casino derivatives — and the London investment firm Morgan Grenfell. By 2000 the investment bankers "were strong enough to stop a planned fusion with Dresdner Bank," and an acquisition of the postal savings institution, Postbank.

"Deutsche Bank in the following years divested itself of its numerous industrial investments in [germany]. Global investment banking achieved more and more dominance."

Braunberger's point is that the associated strategy of becoming "the world's number-one investment bank — publicly stated most often by Hermann Ackermann as CEO — failed miserably, and has now brought Deutsche Bank to an absolute nadir. "The public no longer judges the investment bankers as the heroes, but as the plunderers of a weakened, internally divided bank."

And, he concludes, from 2005 through 2015, "splitting" Deutsche Bank by hiving off the investment bank divisions has been always debated within it, but always rejected by its CEOs. The current, British CEO, John Cryan, has doubled down and wants to concentrate entirely on the investment bank side of the bank, although it is the side which lost 5.8 billion euros in 2015.

Meanwhile the bank's "economic strategists" energetically promote helicopter money as an economic recovery policy.

                                                                                                                                                                                                                                                                                        

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