Home

A federally-registered independent political party

Follow the CEC on Facebook Follow @cecaustralia on Twitter Follow the CEC on Google +


Follow the CEC on Soundcloud












Citizens Electoral Council of Australia

Media Release  7th of September 2007

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

Is a major Australian bank about to collapse?

Australia's major banks have joined the ranks of major international banks that have been caught out by the international credit collapse.

NAB, Westpac, ANZ, Commonwealth and St George are all being forced to shift billions in loans back on to their balance sheets, as their off-balance-sheet special investment vehicles (SIVs) run into trouble.

Major international banks, including America's Citigroup, the UK's Barclays Bank and Germany's Sachsen Landesbank are in the same crisis; Citigroup has $100 billion in off-balance-sheet SIVs.

What is catching the banks out is the very practice that allowed them to leverage their capital into more and more loans, greater and greater profits, and ultimately create the biggest speculative bubble in history.

That bubble is now undergoing a reverse-leverage implosion on the back of the sub-prime mortgage crisis in the US, and the banks have to wear the losses.

The unprecedented, daily liquidity pumping by the Reserve Bank of Australia, and the rest of the world's central banks—no different than the printing of money which caused an explosion of hyperinflation in Weimar Germany in 1923—is a desperate attempt to bail out the banks.

It cannot work.

The bubble, worth quadrillions of dollars, cannot be saved; the only question is what shall be honoured—the livelihood of the banks or the people? American physical economist, Lyndon LaRouche, has proposed government intervention to reorganise the banks, protecting the savings of the people, and writing off the speculative holdings of the banks, in order for them to continue to operate.

For more information on LaRouche's proposal see What Australia Must Do to Survive the Depression.

To find out how the financial system was bankrupted see "Debt is Not an Asset", by John Hoefle (EIR).

For more information see /,
or click here to have a copy of LaRouche's latest webcast on DVD
and our latest New Citizen posted to you, which includes our
far-reaching exposé of the Murray-Darling privatisation now underway!


Citizens Electoral Council © 2016
Best viewed at 1024x768.
Please provide technical feedback to webadmin@cecaust.com.au
All electoral content is authorised by National Secretary, Craig Isherwood, 595 Sydney Rd, Coburg VIC 3058.