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Citizens Electoral Council of Australia

Media Release  9th of August 2011

Craig Isherwood‚ National Secretary
PO Box 376‚ COBURG‚ VIC 3058
Phone: 03 9354 0544 Fax: 03 9354 0166
Email: cec@cecaust.com.au
Website: http://cec.cecaust.com.au
 

A trans-Atlantic call for emergency solution to the present global breakdown crisis

The following statement was issued today by U.S. statesman and physical economist Lyndon LaRouche, German BüSo Party leader Helga Zepp-LaRouche and French Presidential candidate Jacques Cheminade. It is endorsed by Citizens Electoral Council leader and National Secretary Craig Isherwood, and CEC National Chairman Ann Lawler.

The entire global financial system has collapsed, and while the center of the crash is in the trans-Atlantic region, no region of the world is immune from the disintegration that is already underway. A radical policy change is the only way to avoid a total breakdown of civilization, beginning in the trans-Atlantic region, that will drive the world population down to below two billion people in a very short period of time.

There is no longer any distinction between the disintegration of the European financial and monetary system and the total bankruptcy of the Wall Street so-called too-big-to-fail banks. A modest estimate is that the Big Six Wall Street banks are exposed to $1.5 trillion in Spanish and Italian debt alone, much of which is nearly worthless. Last week, when European inter-bank lending froze, it was the U.S. Federal Reserve that opened an emergency discount window. President Obama has pledged to German Chancellor Angela Merkel that the United States will be the lender of last resort for the entire European Monetary Union.

This pledge by President Obama is not only unconstitutional and an act of virtual treason against the people of the United States. It is a pledge for Weimar-style hyperinflation, but this time on a global scale. Such hyperinflationary bailout schemes would perhaps extend the life of the present bankrupt system for a few weeks more, but the price would be a far more dramatic crash into mass social chaos and dictatorship.

There are solutions, even at this late moment. These solutions have been repeatedly spelled out by the leading American economist Lyndon LaRouche for years. However, none of these solutions, which must begin in the United States, can be possibly implemented in time unless President Barack Obama is immediately removed from office by Constitutional means.

President Obama has torn up the Constitution, repeatedly. Most recently, the Libya war was launched without Congressional authorization, a flagrant violation of Article I, Section 8 of the U.S. Constitution. His “Super-Congress” deal is an even more blatant ripping up of the Constitution, which gives sole authority to initiate tax and debt policy to the House of Representatives. The President’s unconstitutional abuses are well known. At least two declared Presidential candidates—Jon Huntsman and Ron Paul—have clearly spelled out his impeachable crimes. Scores of Members of Congress and progressive Democrats have made similar statements, including prominent members of the African-American community. It is transparent that the President has engaged in high crimes against the Constitution, requiring his immediate removal from office—before it is too late.

The leaders of the European Union likewise violate their own national Constitutions in promoting the illegal bailout of the megabanks, while the European Central Bank violates its founding principles in purchasing the debt of essentially bankrupt sovereign states, owed to likewise bankrupt banks and insurance companies. The European Financial Stability Fund, which now loans to the bankrupt states themselves, is going to be authorized to also purchase government bonds on the secondary market.

This issuance of confetti money is not only against the law but in acting as counterfeiters, the European heads of State lead Europe to a Weimar-style hyperinflation. Like Barack Obama, they now deserve to be removed from office for high treason according to the principles and proceedings pertaining to their respective States. The infamous troika made of the European Commission, the European Central Bank and the International Monetary Fund, which is imposing an unprecedented austerity upon sovereign states with the active complicity of the French President and the German Chancellor, should be immediately stopped from destroying the economies and the peoples of Europe.

Within hours of President Obama’s removal from office—through impeachment, or resignation, or through the invoking of the 25th Amendment, Section 4, providing procedures for a President’s removal from office if he is no longer mentally or physically competent to serve—the Congress could convene to pass legislation reinstating the Glass-Steagall separation of commercial banks from the brokerage and insurance sectors. Such a bill has already been introduced into Congress by Marcy Kaptur as HR1489, which already has significant bipartisan support. A minimum of $17 trillion in Wall Street gambling debts, foisted on American taxpayers, would be thus charged back. With that gambling debt removed from the Federal government ledgers, Congress could immediate proceed to issue Federal credit for vitally needed infrastructure projects, like the North American Water and Power Alliance (NAWAPA), that would immediately create millions of productive jobs.

America can begin a process of physical economic recovery, setting a standard for similar action in Western Europe. The trans-Atlantic region can reverse the otherwise irreversible collapse into a new dark age, but only by taking these measures. The unavoidable first step is the removal of President Obama from office, in the immediate days ahead. The overwhelming majority of American citizens are demanding this action, now.

A vast majority of citizens of the nations of Western Europe are demanding the same things, and are calling for a change in leadership.

Now is the time for action.

*** End of statement ***

N.B. The world needs Glass-Steagall

Upon his inauguration in 1933, U.S. President Franklin D. Roosevelt moved immediately to reform the banking system that caused the Great Depression by enacting the Glass-Steagall Act, which established the Federal Deposit Insurance Corporation (FDIC), and made it illegal for cross-ownership between Wall Street’s investment banks, and the bank holding companies which took deposits. This protected the savings deposits of the American people from Wall Street speculators. When the Glass-Steagall Act was repealed 66 years later, in 1999, Wall Street and the City of London banks were set loose on the enormous deposit base of the American people, which fueled the global binge in derivatives speculation that drove derivatives turnover up from around $100 trillion to $1.4 quadrillion ($1,400 trillion), and blew out the global financial system beginning in July 2007.

Only Glass-Steagall can save Australia’s banks

Only the re-enactment of Glass-Steagall, but on a global scale, can solve the global financial crisis, because it is the Glass-Steagall distinction between speculation vs. real banking which is necessary to sort out the unpayable speculative debt that must be canceled, from the real debt that should be honoured. For example, there is no other way to save Australia’s banking system, which is drowning in foreign debt incurred to speculate in the domestic property bubble, as well as $16.8 trillion in derivatives exposure, which completely dwarfs the banks’ combined assets, equity and deposits. The current plunge in the Australian dollar means that, just like September 2008, foreign money is fleeing Australia, which back then pushed the banks to the brink of bankruptcy because they were unable to keep borrowing to roll over their existing loans. Only the Rudd-Gillard bank guarantee at the eleventh hour saved them. The banks are now in the same crisis again. It is the responsibility of the government to preserve the essential functions of the banking system, such as the payments system and the deposits of individuals and businesses, which can only be achieved in the case of Australia’s banks by putting the banks into receivership and writing off their speculative debts and derivatives obligations using the Glass-Steagall standard.

For a comprehensive account of the global financial crisis and its solutions, click here for a free copy of the CEC’s feature DVD, the Homeowners & Bank Protection Bill—The Only Solution.
Click here to purchase a copy, $10.

To buy a copy of What Australia Must Do to Survive the Depression, click here.

Click here to join the CEC as a member.

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