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Citizens Electoral Council of Australia

Media Release  8th of March 2012

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
 

Isherwood: A Greek debt default is good news

If Greece defaults on its debt this week it will throw a lighted match on the $1.4 quadrillion mountain of tinder-dry derivatives that are the cause of the global financial crisis. The resulting explosion will bankrupt many parasitical speculators and investment banks, and provide an opportunity to implement Lyndon LaRouche’s call for a global Glass-Steagall, Citizens Electoral Council leader Craig Isherwood declared today.

“A Greek debt default is good news,” Isherwood said, “if it is used to reorganise the entire global financial system.

“But, if instead the various governments continue the City of London-dictated bailout policy, to bleed and kill people in order to prop up their derivatives bubble, they will unleash a deluge of hyperinflation and drive the world into a new dark age.”

Isherwood said the best thing about a Greek default is the carnage it would wreak in the credit default swap markets.

“Since 2008, millions of people worldwide have had their lives ruined, losing their homes, their jobs, their entitlements, their savings, often everything, so that governments could prop up the banks which gambled on credit default swaps—derivatives—and lost,” he said.

“Because the IMF, European Central Bank and EU have thrown hundreds of billions of euros at trying to prop up Greece’s debt to the City of London/Wall Street banks, most banks have gambled that Greece will not default, so if it does, that will wreak havoc on the derivatives gamblers. Couldn’t happen to a nicer bunch of bloodsuckers.”

Glass-Steagall

Isherwood elaborated LaRouche’s Glass-Steagall solution:

“U.S. President Franklin Delano Roosevelt’s 1933 original Glass-Steagall law is the principle that the government should protect the financial activities of the real economy, i.e. the daily lives of the people, and not the gambling bets of speculators,” he said. FDR had to take on Wall Street before he could launch the great infrastructure projects which brought the U.S. out of the Great Depression, and build the powerful economy which secured the global victory against fascism in World War II.

The 1999 repeal of the original U.S. Glass-Steagall law allowed Wall Street and City of London investment banks to sink their fangs into the commercial banks which serviced the real economy and held the people’s deposits. This both fed the flood of derivatives gambling that caused the global financial crisis, and created financial institutions that screamed when the GFC erupted, that they were ‘too big to fail’ and so demanded the government bail-outs that have since bankrupted governments all over the world, and led to the sovereign debt crises presently blowing up in Europe.”

He continued, “A global Glass-Steagall as prescribed by Lyndon LaRouche, the world’s most accurate economic forecaster, would provide the standard to sort out the global debt burden: debt incurred to invest in productive enterprises such as infrastructure or physical industry would be honoured; debt built up purely from speculative gambling—the vast majority of the world’s debt—would be cancelled, and the investment banks trading in that debt would be allowed to go bankrupt.

“Glass-Steagall is an emergency measure, which would allow governments to take the next step that is crucial to a real recovery, which is the establishment of national banks, owned and controlled by governments—unlike the present privately-controlled central banks. These national banks would issue new credit into the economy in the form of long-term investment in new, grand infrastructure projects, to recapitalise the national economies of the world.

“For Australia, the CEC has developed a ‘blueprint for recovery’, centred on 18 large-scale water diversion projects such as the Bradfield Scheme of North Queensland; a high-speed railway network between the major cities and ringing the whole country; a nuclear power grid to utilise our abundant uranium and thorium resources for cheap electricity; high-speed shipping for trade into Asia; and a space base on Cape York Peninsula.”

Isherwood concluded, “In a crisis this big, our only hope is to fight for principle, the principle of the common good. The welfare of the people comes first, and that can only be secured through Glass-Steagall, and then national banking. The CEC is the only political party presenting an actual solution to the present crisis, which is worsening by the day. So if you want to get out of this hellish mess, you should join us.”

For an extensive DVD review of the original crisis which triggered Glass-Steagall, and how Glass-Steagall reversed that crisis but was later dismantled by bankers and their political friends, click here.

Click here to buy a copy of The Infrastructure Road to Recovery ($13 inc. p&h)

Click here to join the CEC as a member.

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