The implosion of the global property debt bubble has plunged Western Australia into a housing crisis, but there is a solution—the CEC’s Homeowners and Bank Protection Bill.
When it comes to solutions, the ALP and Liberals/Nationals are as bankrupt as the financial system; their schemes to encourage new housing construction do not address the affordability of existing housing, nor the crisis of thousands of mortgage-stressed families who face losing their homes.
The crisis will only be addressed if the Government faces the fact that 1) it is a consequence of an explosive global debt bubble, the collapse of which has forced banks worldwide to write off $500 billion (NAB $1 billion and ANZ $1.3 billion here) and put over 3,000 U.S. banks on a government “watch list” of endangered institutions; and 2) it is the Government’s responsibility to step in and reorganise the financial system, so that this crisis doesn’t ruin thousands of average families.
Only the Government can act on this, because the heart of the problem is hundreds of billions of dollars of unpayable debt, on over-inflated property values, which will bankrupt the entire banking system as the values of properties continue to plunge.
The U.S. sub-prime mortgage meltdown has now spread to Britain and Australia; indeed, expert commentators now consider Australia to be the new epicentre of the crisis.
In September 2007, U.S. physical economist Lyndon LaRouche designed the Homeowners and Bank Protection Act, as firewall legislation to protect people from the fall-out of the bankers’ mess.
The legislation:
- Puts a moratorium on all home foreclosures, to protect homeowners and tenants from eviction;
- Puts the associated financial institutions under bankruptcy protection, so they don’t close their doors, and thereby keeps the economy functioning and protect people’s savings in those banks etc;
- Provides for the comprehensive reorganisation of the financial system, by writing down the unpayable debt, and adjusting downwards the values of the properties and the associated mortgage and rental payments.
Since January this year, the CEC has led a national mobilisation for an Australian version of this legislation, called the Homeowners and Bank Protection Bill, which has been adapted to include family farmers under its protective measures; hundreds of local elected officials, and tens of thousands of Australians have supported this campaign. (Click here).
This bill is the first step in addressing the most serious crisis facing the entire country, but only the CEC is leading the way.
Join the campaign, to save our homes, our economy, and our future.
For a free copy of the DVD, Firewall, which explains the solutions to the ongoing global financial collapse, and a copy of the latest New Citizen, click here.