The out-of-control global banking crisis, the focus of which has now moved to Australia, demands Lyndon LaRouche’s regulatory, protectionist solution now if a worldwide humanitarian crisis is to be averted.

Those solutions have been detailed in the just-released August/September edition of the Citizens Electoral Council’s New Citizen newspaper, headlined “Banks Crashing Worldwide—Only LaRouche Knows What to Do!”

Unless the Australian government takes LaRouche’s advice, including implementation of the CEC’s Homeowners and Bank Protection Bill and an Australian National Resources Company (click here for policy statements), then what is to come will dwarf the global tremors of the past fortnight:

• Desperate but failing attempts to bail-out Fannie Mae and Freddie Mac which could ultimately cost up to $8 trillion.

• US bank runs, starting with IndyMac and “quietly” continuing amidst revelations of a secret Federal Reserve list of 1400 banks in “critical danger” or “serious trouble”. Two more banks, from Nevada and California were closed last week.

• NAB’s write down of 90-100% of investments backed by US mortgages, an admission of the worthlessness of such securities not yet made by any US bank. ANZ doubling its provisions for bad losses for the year, with the Commonwealth and Westpac expected to follow.

• $60 billion of our $1.3 trillion in superannuation officially vaporising; $35 billion of our “Future Fund” sitting in bank accounts at Australia’s major banks faces the same fate. Australian bank stocks are also being targeted for shorting by international hedge funds.

• Numerous warnings of Australia entering centre stage in the crisis, notably BNP Paribas saying “the epicentre of the financial market sell-off will switch from the US into Europe and Oceania,” and prominent financial commentator Ambrose Evans Pritchard’s warning in the London Telegraph, under the headline “Australia faces worse crisis than America”.

The New Citizen shows that this meltdown, together with the hyperinflation in food and fuel prices, is the natural result of decades of British-created free trade policies implemented through globalisation. Only a sudden break from these policies, and immediate return to the protectionist ideas which first made America a great industrial nation—and which, wherever they were copied, transformed other countries, including Australia, into great industrial economies also—will succeed in bringing nation states and their peoples through the crisis.

To become part of the fight for real solutions to this crisis order a free copy of the New Citizen, or become a distributor—click here.