May 25—As the global financial
crisis continued to explode
out of control, a crucial
vote with international ramifications
took place in the U.S.
Senate on 20th May on the socalled
“Financial Reform Bill”.
Ostensibly designed to deal with
the crisis, the bill is a piece of
Wall St.-endorsed garbage. The
real issue was whether the Senate
leadership would allow a
vote on a proposed amendment
to it, to restore a “Glass-Steagall”
firewall against precisely
the kind of Wall St./City of
London speculation which has
caused the present crisis. “Glass-Steagall” was enacted in 1933 to
rein in Wall St., to facilitate President
Roosevelt’s infrastructureled
economic recovery program,
but was repealed at the demand
of Wall St. and London in 1999.
(See p. 2.)
Shortly before the May 20
vote, a most curious incident
took place: the British Foreign
Office declared that it would regard
the renewal of Glass-Steagall
as a “hostile act” against
the British Crown and the City
of London. Why in the world
would the passage of U.S. domestic
legislation be a mortal
threat to Queen Elizabeth and
the City of London? Because, as
American economist and statesman
Lyndon LaRouche has repeatedly
emphasised, restoring
Glass-Steagall is the first step
to writing off quadrillions of
dollars of derivatives and other
speculative instruments, without
which there will never be a
recovery of the actual physical
economy. But, acting as toadies
for the British, President
Obama and the Senate leadership
rammed through the “Financial
Reform Bill” without
the Glass-Steagall amendment,
despite its overwhelming bipartisan
support.
The global financial crisis
The eruption of the eurozone
debt crisis in early May
is merely the latest in a series
of ever-worsening global financial
crises dating back to
August 1971, when U.S. President
Nixon, also acting as a
flunky for Wall St. and the City
of London, took the dollar off
gold. That ended the fixed-exchange
rate Bretton Woods
system, and opened the door
for unbridled speculation in
currencies and other financial
instruments. As investment
drained out of the real physical
economy of agriculture,
industry, and infrastructure,
into speculation, financial
shocks came one after another
in rapid succession. These
included: the October 1987
U.S. stock market collapse,
the greatest ever; the near collapse
of the global system in
1997-98 with the “Asia”, “Russian
bond”, and “LTCM hedge
fund” crises; the “mortgage
crisis” which erupted in August
2007, still ongoing; the
near global crashes in 2008
and 2009, averted only when
the U.S. and European governments
bailed out the banks
with an estimated $30-40 trillion;
and the present “Greek”
and “euro” crises.
Governments “solved” each
crisis by pouring taxpayers’
money in to bail out the private
banks, but each bailout only
created a larger, even more
explosive bubble for the next
round. Now, physical economist
LaRouche—whose track
record of economic forecasting
since 1956 is unmatched—
warned on 20th May that, “The
world as a whole stands on the
edge of a sudden, overnight
collapse…. We could wake
up one morning, and find that
we have no financial system
at all—an instant plunge into
a New Dark Age.” We must
immediately shut down the
quadrillion-dollar derivatives
trade, the most volatile aspect
of the bubble, LaRouche said.
And, regardless of the 20th May
vote, we must ram through
Glass-Steagall in the U.S. as a
model for the world.
A new, revolutionary phase
of history
Were we dependent upon the
existent political class of fools
and traitors such as Obama,
Kevin Rudd and their ilk, the
world would never survive.
Fortunately, however, an entirely
new factor has emerged
in U.S. and global politics over
the past several months—a
mass upsurge of populations
of entire countries in response
to the crisis. Beginning in the
U.S. in August, for instance,
hundreds of thousands and
even millions of U.S. citizens
took to the streets in opposition
to Obama’s genocidal, Adolf
Hitler-modeled “health reform
bill” (which Kevin Rudd is
now emulating). Over the past
several months, a whole series
of U.S. Senators and Congressmen
from both parties, many of
whom have held office for decades,
have suffered shocking
electoral defeats. Most stunning,
perhaps, was the victory
of LaRouche Youth Movement
leader Kesha Rogers in
the 2nd March Democratic Party
Congressional primary election
in the 22nd district in Texas.
Campaigning relentlessly
as a LaRouche Democrat for
the impeachment of Obama
(the head of her own party!),
Kesha won 52% of the vote
against two opponents, trouncing
the Democratic party-endorsed
candidate.
With LaRouche’s strategic
leadership, this revolutionary upsurge
offers enormous hope. So
isn’t it time you joined the CEC
and LaRouche, to help fight our
way out of this mess?
Contents
LaRouche to Australia: Join in the Recovery
p. 1
Federal Election 2010:
CEC Hammers Genocide Policies
Including Craig Isherwood speech, "Destroy Empiricism and Genocide: Let's Go to Mars!"
p. 1-4
The Genocide File: The Campaign to Depopulate Australia
p. 2
What is "Glass-Steagall"?
p. 2
Australia Looted by London's "Carry Trade"
p. 3
CEC Flagship Campaigns, Federal Election 2010
p. 4