Citizens Electoral Council leader Craig Isherwood today announced that the CEC has geared up its national campaign for the Homeowners and Bank Protection Bill 2008, to place the Australian Banking system into bankruptcy reorganisation and protection, and to provide an immediate moratorium on the rising home foreclosures for owner occupied homes and farms.
The Homeowners and Bank Protection Bill 2008 will deal directly with the problem of ‘toxic assets’ by placing the derivatives riddled Australian Banking system into immediate Bankruptcy protection and reorganisation.
“We have to break the Australian banking system out of the global monetary casino,” Mr Isherwood said.
“Australian Banks have $14.2 trillion of derivatives stuffed in them, off the balance sheet, and last year those derivatives grew at an annualised rate of 12%! Compare this to total assets for Australian Banks of $2.4 trillion, shareholder equity of $162 billion, Australia’s total GDP of about $1 trillion, and the total value of freely floated stock on the stock market, now under $1 trillion.
“Secondly, whilst we are dealing with the Australian Banks,” Mr Isherwood said, “we must deal with the rising rate of home foreclosures.
“According to this year’s annual JP Morgan Fujitsu Mortgage Stress report, more than 30,000 homes will be repossessed or foreclosed upon before the close of this year, and almost 500,000 Australians plunged into mortgage stress. That is an average of over 3,300 houses per month until the end of the year!
“Whilst the government is predicting unemployment will rise to 7%, Westpac is predicting 8% and last year’s JP Morgan Fujitsu report predicted 9%, the reality is we are not in a ‘cyclical’ crisis, but a systemic break-down crisis of the entire world’s monetary and financial system. In other words, under current policies, there is no bottom to it, nor any ceiling on what the unemployment rates could rise to.
“As unemployment rises, home foreclosures are going to go through the roof, and therefore we need to place an immediate moratorium on all home foreclosures, now, and prevent the social chaos that is building.”
Mr Isherwood said that for over 14 years the Citizens Electoral Council has been providing the leadership to Australia with the economic forecasts issued by U.S. statesman and physical economist Lyndon LaRouche. This crisis was not only foreseeable but was predictable under the policies of British free-trade and globalisation which has always destroyed the physical economic development of nations.
“The Rudd government persists in sticking with the lie that ‘nobody could have foreseen this crisis’ so how can anyone trust their policies to date?” he asked. “The stimulus package may help families with half to one average mortgage payment—but given that personal insolvencies in Australia have climbed by 12.2% just in the last year, the fact is that nothing is being done to reverse the underlying collapse of the Australian economy, from failed globalisation policies.”
Mr Isherwood concluded, “Only policies like the HBPB, which put the general welfare of the people first, ahead of the private banks and other large multinational cartels, can see any real change back to economic prosperity.”
Click here to see a list of U.S. Councils and State legislatures which have endorsed LaRouche’s American version of the HBPB.
Click here to order an information pack, including a DVD, on the need for a bankruptcy reorganisation and the Homeowners and Bank Protection Bill, or watch it online, here.
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