Following the 110 billion euro bailout of Greece, the 1000-point yo-yo plunge in the Dow Jones, and the sudden doubling of the international rate for overnight lending among banks known as the LIBOR (London Interbank Offered Rate), Europe’s money-masters in the City of London ordered the printing of over a trillion dollars to prop up the failed euro.
(Bizarrely, it came immediately before Wayne Swan unveiled the federal budget’s projections of strong economic “growth” now that the “GFC” is over, prompting Citizens Electoral Council leader Craig Isherwood to question: “What’s crazier? Kevin Rudd’s line that the crisis is over just as the meltdown escalates, or Europe’s return to 1923 Weimar Germany-scale money printing, as their solution to that meltdown?”)
Over the weekend, the not-quite-former British Prime Minister Gordon Brown, and Britain’s White House stooge Barack Obama, harassed German Chancellor Angela Merkel to accept, before the Monday, 10th May market opening, a giant bailout swindle starting at US$1.1 trillion—the figure demanded by the City of London in the past weeks to attempt to save their bankrupt banking system.
Central to the scheme is the activation of the so-called “nuclear option”—unlimited European Central Bank (ECB) money printing that the British have been demanding for months, for which the U.S. Federal Reserve will be the guarantor of last resort, through a swap line to the ECB; it has allowed the ECB to offer banks “as much cash as they need for three months and six months and reactivate a swap line with the Federal Reserve”, according to Bloomberg.com.
The Rothschild-led Inter-Alpha Group of Banks, whose bankruptcy is what is actually being bailed out, is crowing about the ECB money printing:
“This sets a precedent for the rest of the life of the Central Bank,” gushed Jacques Cailloux, chief European economist at Inter-Alpha Group flagship Royal Bank of Scotland. “The ECB’s intervention … was necessary to short circuit the negative feedback loop which was getting more and more threatening for the global economy.” A bank strategist for ING, another Inter-Alpha member, foreshadowed they’ll demand even more: “The central question from here is whether the cumulative measures can manage to stabilize the system.” Bloomberg took note of the fact that inter-bank lending rates did not go down on Monday after the package was announced, and concluded that the “$1 trillion European loan plan may not be enough to restore confidence in markets.”
“The Brutish bastards are at it again!” Lyndon LaRouche said in a 10th May statement. “The British swine have once again imposed a 1923-style hyperinflationary collapse on modern Germany, with the trillions-dollar bailout scheme imposed on the Euro zone this past weekend. Only the immediate enactment of a Glass-Steagall law could prevent the United States itself from falling into the same fate now destined for continental European victims such as, above all other targets for total destruction, the Federal Republic of Germany.
He continued, “Chancellor Frau Merkel’s Germany was given virtually no option in this matter. Indeed, only the immediate enactment of the return to President Franklin Roosevelt’s Glass-Steagall law in the U.S.A. could create the shift in global conditions which would prevent the British hyperinflationary policy for continental Europe from plunging the entirety of this planet into the darkest dark age in known history, now.”
The good news is that there is right now an intense political battle inside the U.S. Congress to reenact the Glass-Steagall rules set by U.S. President Franklin Roosevelt in 1933, in the form of the Cantwell-McCain amendment to Obama’s fraudulent Dodd financial reform bill; Wall Street and the White House are hysterical about the Cantwell-McCain amendment, because its clear Glass-Steagall regulations will finally leash Wall Street and the City of London.
For nearly 70 years, the Glass-Steagall Act forbade investment banking pirates from any involvement with the large, deposit-taking banks which held the American people’s savings, but following its criminal repeal in 1999, America’s enormous savings deposit base was funneled into the frenzied derivatives gambling casino of Wall Street and the City of London, to fuel an exponential expansion of the derivatives bubble, which grew until July 2007, when its sub-prime-triggered blowout started the still-unfolding global economic breakdown crisis.
To find out about the massive fight to reinstate Glass-Steagall regulations in the U.S., click here.
For a free copy of LaRouche’s EIR Journal, with a feature on the Glass-Steagall approach to solving the global financial crisis, click here. (Call 1800 636 432 to purchase, $10.)
To buy a copy of What Australia Must Do to Survive the Depression, click here.
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