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Citizens Electoral Council of Australia

Media Release  Thursday, 5 September 2013

Craig Isherwood‚ National Secretary
PO Box 376‚ COBURG‚ VIC 3058
Phone: 1800 636 432
Email: cec@cecaust.com.au
Website: http://cec.cecaust.com.au
 

Vote CEC for Glass-Steagall, a National Bank and major public infrastructure

There are far more serious issues confronting Australia than the outcome of this weekend’s election. While most Australians will be happy to see the end of Kevin Rudd, as they were Julia Gillard, that will not alter the fact that Australia is heading into the next phase of the global financial crisis, and if anything the Coalition is even more in the pockets of the bankers whose unregulated gambling caused this crisis, than the ALP.

Those bankers have issued their demand: the next Australian government must ram through the legislation currently being prepared by Treasury, to impose on Australia a Cyprus-style “bail-in” regime, so that when a major Australia bank goes under in the next financial crisis—as one or more assuredly will—our savings deposits will be seized to prop that bank up.

This law will hit you personally, and everyone you know. To fight it, you must join forces with the Citizens Electoral Council: become a member; pass on to everyone you know the CEC’s literature exposing the bail-in plot; confront your state and federal MPs and local councillors, etc.

How to vote

Because you also have to vote on Saturday, when you do, don’t waste it. Don’t stampede with the herd; don’t swing like a monkey or vote like a donkey.

Make your vote a shot across the bow of the banks and their political lackeys who are in on the bail-in plot, by voting for the policies that will strip their power over the economy and the people’s lives—the CEC’s 2013 election platform:

1. A Glass-Steagall separation of essential banking from speculation. This policy is the complete opposite of bail-in. Glass-Steagall is the name of the U.S. law in place from 1933 to 1999 which protected depositors by absolutely forbidding commercial banks that held deposits from having anything to do with the Wall Street investment banks—no cross-ownership, cross-directorships, no contact whatsoever. It was the repeal of Glass-Steagall in 1999 which enabled investment banks to gobble up commercial banks and their deposits, so they could have a lot more money to gamble with, which led to sub-prime loans, the derivatives bubble, and the worldwide crash in 2008. There is now a big push to restore Glass-Steagall: in the U.S., where three bills are before the Congress; in the U.K., where more than 60 per cent of MPs across all parties support it, and in many other European nations. The giant U.S. bank JPMorgan Chase is leading a Wall Street counter-attack to stop Glass-Steagall, spending millions to threaten and/or bribe U.S. politicians so they don’t vote for it. They know it will bankrupt their financial casino, and protect the people and the banks that service the everyday economy, from their predatory looting. Australia desperately needs a Glass-Steagall separation of our Big Four banks, which between them hold close to 80 per cent of all Australian deposits. Those deposits are in extreme danger, because the same banks are heavy speculators, especially in derivatives, the same toxic gambling bets that caused the 2008 GFC. Altogether Australia’s banks are exposed to derivatives obligations totalling $21.5 trillion. Glass-Steagall will split up the Big Four, so that the deposits they currently hold end up in safe banks that aren’t involved in risky speculation.
2. A government-run National Bank. Australia must return to the banking structure we had in WWII, when the government-owned Commonwealth Bank was in charge of the banking system, and regulated all of the private banks. This system was brilliantly successful: it financed the extraordinary wartime economic mobilisation that transformed Australia’s economy from an agrarian backwater into an agro-industrial powerhouse with a world-class machine tool sector; and all bank deposits, in both the private banks and the Commonwealth Bank, were absolutely guaranteed. With its own National Bank, the elected government becomes the ultimate authority in the financial system (rather than the privately-controlled central bank as it is presently), and it can direct the bank to issue credit for long-term investments in the areas of the economy for which the government is responsible; namely, infrastructure, and the development of essential agricultural and manufacturing industries. Infrastructure financed with credit from the National Bank takes the cost burden off the annual budget, freeing up public resources for pensions, doctors, nurses, teachers and the other things we expect the government to fund adequately. The CEC has a bill for a national bank, the Commonwealth National Credit Bank bill, ready to be introduced immediately.
3. Big public infrastructure projects. The only way for Australia to reindustrialise, and make our economy once again an agro-industrial powerhouse, is to embark on a program of large-scale infrastructure development. The CEC has plans for 18 major water diversion projects, including the Bradfield Scheme in North Queensland, the Clarence River Scheme to inject more water into the Murray-Darling Basin food bowl, and the second stage of the Ord River project in WA. We also have plans for a high-speed Melbourne to Darwin fast freight rail service called the Asian Express, and a high-speed Australian Ring Railway around the whole country. The CEC plans to utilise Australia’s own abundant reserves of uranium and thorium by developing a nuclear power industry, to return to cheap electricity, but of an increased energy-density. All of these projects will revitalise feeder industries such as steel manufacturing, creating millions of jobs directly and indirectly. They can all be financed through long-term, low-interest loans from the National Bank.

Candidates

The CEC is not running candidates in every seat in this election, but we are running candidates in seats in four states and the Northern Territory, and in the Senate in Victoria and NT. Look at the following list of candidates to see if there is one in your area. And remember, use your vote to send a message to the bankers, but prepare to do far more than just vote—join with the CEC to fight.

The CEC Candidates Movement

If you have trouble viewing this map, please click here to go to the webpage.