Obama Out to Kill Glass Steagall, While Pushing Weimar Hyperinflation

May 11, 2010 (LPAC)—Lyndon LaRouche today fiercely denounced the Obama White House and Treasury Department, for simultaneously conducting a vicious campaign to kill the Glass Steagall amendment, introduced by Senators Maria Cantwell (D-Wash.) and John McCain (R-Ariz.), while pushing through a "Super-TARP" bailout of Europe, at American taxpayers expense. "If the Super-TARP bailout is allowed to go forward," LaRouche warned, "there will be blood in the streets. The American people are not about to tolerate another mega-trillion dollar bailout of a hopelessly bankrupt international monetary system—particularly when the U.S. Federal Reserve is put forward as the bailout lender of last resort for a bunch of European-based foreign banks. This is 1923 Weimar hyperinflation on the global scale."

In the past 24 hours, sources close to the Obama White House and the Democratic leadership in the U.S. Senate have confirmed that President Obama, Treasury Secretary Tim Geithner and White House economic advisor Larry Summers are waging an all-out campaign to kill the Cantwell-McCain amendment, that would reinstate the Glass Steagall standards, first established by President Franklin Roosevelt in 1933. According to these sources, following Saturday's defeat of incumbent Senator Robert Bennett (R-Ut.) in the Republican caucus, over his support for the 2008 TARP Wall Street bailout, Republican support for the Glass Steagall amendment jumped, assuring that the amendment, if introduced onto the Dodd financial reform bill, would overwhelmingly pass. In response, the White House worked through the weekend and into Monday night, with Senate Majority Leader Harry Reid (D-Nev.), Senate Banking Committee Chairman Christopher Dodd (D-Ct.), and Senators Carl Levin (D-Mich.) and Jeff Merkley (D-Or.), to draft and boost an alternative bill, based on former Federal Reserve Chairman Paul Volcker's so-called "Volcker Rules." The Volcker Rules would place some restrictions on speculative activity by banks and bank holding companies, but would do nothing to reestablish the Glass Steagall firewall, separating commercial banks from investment banks, hedge funds, insurance companies and private equity funds. As Lyndon LaRouche made clear on Saturday, May 8, in his international webcast, nothing short of a full restoration of Glass Steagall and a bankruptcy reorganization of the otherwise hopelessly bankrupt global financial system, can work.

The sources all confirmed that the intent of the Levin-Merkley amendment, as worked out with the Obama White House, was to kill the Glass Steagall effort.

In response to these reports, Lyndon LaRouche described the Volcker Rules as "less than worthless."

Paul Volcker has apparently lost his guts to defend the U.S.A. He prefers to be acceptable to this crazy Administration." LaRouche continued, "It is now time to be patriotic, to forget about things like popularity and legacy. Obviously, Volcker lacks my guts. He does not lack the brains to understand the consequences of his capitulation to pressure from the Obama White House. This is a sell-out of the United States, and he knows it. And the same is true of Senator Levin, who also knows better than to be putting his ambitions ahead of the American people."

LaRouche had even stronger words for President Obama, who he accused of "refusing to defend the United States, which, as President, is tantamount to treason." He warned that anyone who does not back the Glass Steagall amendment, which has the overwhelming backing of the American people, will be vilified by 80 percent of all Americans. "By moving explicitly to block the introduction of the Cantwell-McCain amendment," LaRouche warned, "the White House is going for dictatorship."

- Super-TARP -

According to senior U.S. intelligence and Democratic Party sources, beginning with last Thursday's 1,000 point temporary crash of Wall Street, triggered by the looming collapse of the European Monetary Union sovereign debt bubble, Geithner and Summers, with the active backing of President Obama, played a pivotal role in ramming through a $1 trillion-plus bailout of the major European banks, a bailout that will do nothing to solve the onrushing global financial disintegration, but will subject the populations of continental Western Europe and the United States to murderous Schachtian austerity, leading to an inevitable social explosion throughout the Trans-Atlantic world. According to official White House accounts, President Obama phoned German Chancellor Angela Merkel and French President Nicolas Sarcozy on Sunday morning, to press them to go along with a Super-TARP bailout scheme. While the public announcements of the deal focused on the role of the European Central Bank and the International Monetary Fund, sources confirmed that the key to the whole deal was the committment of the U.S. Federal Reserve to pump an unlimited supply of U.S. Dollars into the bailout. Indeed, at 9:15 PM EDT on Sunday, May 9, the Board of Governors of the Federal Reserve Board issued a terse two paragraph press release, announcing that the swap window, that had been used in the 2007-2008 international financial meltdown, would be extended, once again, to the ECB, the Bank of England and the Swiss National Bank, through January 2011.

The decision to go for another hyperinflationary bailout of the entire international financial system, LaRouche warned, is going to trigger the kind of Hell on Earth that the British Monarchy has been advertising as its policy for years. "They want to reduce the world population to below two billion people, and this Fed bailout policy, pushed through by President Obama, is going to do exactly that, if not reversed immediately. Someone wants chaos throughout the Trans-Atlantic region."

Americans Mobilize to Enforce Glass-Steagall, Rout the British Bastards

May 11, 2010 (LPAC)—The LaRouche-led mobilization escalated on Washington, D.C., to force through the reinstatement of the Glass-Steagall separation of commercial banking from speculation, and defeat the British financial assault on the United States, behind the Weimar II-style Federal Reserve/Eurozone unlimited global "bail-out." The mechanism to re-establish Glass-Steagall stands in the Senate, as Amendment 3884, filed May 6, to the Dodd S. 3217 "American Financial Stability Act of 2010," which is currently under Senate debate.

Procedurally, votes on amendments to the Dodd bill may occur this morning. Senate Majority Leader Harry Reid (D-Nev.) has stated his intent to rush through the "Financial Stability" bill by the Memorial Day recess, or even by the end of this week. However, the course of events will not be decided as a procedural question. Attempts to black out, and kill the Glass-Steagall initiative, amount to sticking a wine cork into a volcano.

The LaRouche Political Action Committee (LPAC) is leading the charge. The new statement issued by Lyndon LaRouche, "The Brutish Bastards Are At It Again!" was covered on a midday edition of the LPACTV daily news show, "Off the Cuff," and went into mass distribution around Washington, D.C. as a leaflet in the Capitol Hill commuter belt. (Leaflets are on www.larouchepac.com/organize)

LaRouche commented in discussions: The truth of the matter is that civilization is at stake. A global Weimar II operation is now in progress; it is perpetrated by the British; and Americans—if not Europeans—can call a bastard, a bastard.

There is overwhelming support "outside the Washington Beltway" for Glass-Steagall, and against London's free-for-all chaos, despite the media control. All bets are off for any incumbent or candidate who does not not realign with this reality. In Utah, three-term Republican, Sen. Robert F. Bennett failed to get his party's re-nomination at the Republican caucus on Sunday, to unambiguous chants of "TARP, TARP, TARP." He came in third! This is the first time in 70 years that a Utah incumbent senator was kicked out, since Sen. William King was tossed by his Democratic Party in 1940, because he opposed the New Deal.

Look at what's happening in Iowa. One of the candidates in Iowa's June primary for the Democratic candidate to run against Sen. Charles Grassley (R) this Fall, has the reinstatement of Glass-Steagall as a policy plank. Tom Fiegen, a small-town attorney, from Clarence, Iowa, states that the relationship between the financial services sector and "us," has to be changed, and that he will work to reinstate the Glass-Steagall Act. His website says that the 1999 repeal of that law allows banks, insurance, and other financial entities, to "play in each others' swimming pool."

Iowa Sen. Tom Harkin (D), is one of the six co-sponsors of S.A. 3884, and was a co-sponsor of its introduction as a separate bill in December 2009, along with Sen. John McCain (R-Ariz.), Maria Cantwell (D-Wash.), Russ Feingold (D-Wisc.), Ted Kaufman (D-Del.) and Bernie Sanders (I-Vt.).

Sen. Harkin spoke on Glass-Steagall on the Senate floor, on April 28, during the discussion at the time of the third procedural vote on whether to bring the Dodd "Financial Stability" bill to the floor. Harkin said, "In my view, a big reason for the financial collapse of 2008, is that things got seriously out of balance and out of whack. As Glass-Steagall was repealed, as special interests attacked the very idea of government regulation, and as the SEC and other watchdog agencies turned into permissive poodles, bad actors on Wall Street stepped into the void....[re. the Dodd bill]

"To further improve the bill, I am a co-sponsor of legislation offered by Senator Cantwell that would re-create the Great Depression regulation that prohibited the mixing of commercial banks, investment banks, and insurance companies....

"Mr. President, America has been through financial collapses and deep economic downturns before. In charting the way forward, we can learn important lessons from the financial crash of 1929 that led to the Great Depression. FDR answered that crisis by implementing tough new regulations to stabilize the financial system, to rein in risk-taking and recklessness on Wall Street, and to make the economy work for ordinary Americans. This led to decades of shared economic prosperity unprecedented in our nation's history...."

LPAC National Campaign Mobilizes For Glass-Steagall Amendment

May 11, 2010 (LPAC)—The LaRouche PAC national campaign, being spearheaded by LaRouche Democrats Rachel Brown, Kesha Rogers, and Summer Shields, has gone into high gear, mobilizing for the passage of the McCain-Cantwell amendment to restore FDR's Glass-Steagall firewall for the banking system. All three candidates have issued statements on their websites, and are taking to the streets, to demand action.

"The Glass-Steagall Reform Is Almost Ours," wrote Kesha Rogers, the official Democratic candidate for the 22nd District in Texas. "We are on the verge of a breaking development which bears directly on what continues to be a keystone of my campaign," she wrote. "The U.S. Senate may soon vote to include the McCain-Cantwell amendment in the current financial reform bill. Not only does this amendment have the stated intention of restoring the authority of Franklin Roosevelt's 1933 Glass-Steagall banking act, in full, which separates commercial banking from investment banking, but if passed, would spell the end of the bankrupt monetary financial system as we know it."

"I am putting my full endorsement and support behind this amendment, and anyone who opposes it is opposed the 78% of the U.S. population that supports it," declared Summer Shields, candidate for the Democratic Party nomination in California's 8th District. "If President Obama attempts to veto the legislation, as his administration has explicitly stated their intention to do so, then he will be doomed by his own foolish actions."

"Pass the Glass-Steagall Amendment To Shut Down Wall Street," said Rachel Brown, candidate for the Democratic Party nomination against Massachusetts Congressman (and bankers' man) Barney Frank. Brown also took her campaign to the financial district of Boston on both May 7 and 10.

Brown campaign organizers report finding a high level of support for Glass-Steagall in the financial district, as opposed to the question on impeachment. While discussing the policy, campaign workers reported to the citizens that both Massachusetts Senators, Scott Brown and John Kerry, are doing nothing on the issue. A call to Brown's office found it clueless on Glass-Steagall, and Kerry's office told a caller that the Senator was going to wait and listen to the debate! As if the sovereignty and survival of the United States were not at stake!

The response of Houston citizens was strong on the question of getting rid of Obama, but weak on the question of using the opening to ram through Glass-Steagall—a problem the Rogers campaign will be addressing in its continuing mobilization.

Dying For The Euro? Implement A Global Glass-Steagall

May 11, 2010 (LPAC)—Using every threat imaginable, London deployed the ECB, the European Commission and British puppet Barack Obama to arm-twist European leaders—especially in Germany—into accepting on the eve of May 10, a giant bailout swindle of up to $1 trillion for starters: the figure demanded by the City of London in the past weeks to attempt to save the bankrupt banking system.

The Great European Bailout Swindle will be composed of: a) EU60 billion immediately available, which the EU Commission will take from earmarked funds of the EU budget; b) a EU440 billion euro loan guarantee fund managed by a newly created Special Purpose Vehicle, which will borrow money at market rates under guarantee of all EU member-states; c) an IMF facility of EU250 billion; d) a combination of unlimited ECB liquidity-pumping measures, including the so-called "nuclear option," i.e. direct purchase of state bonds; e) a Federal Reserve swap line to the ECB, in order to provide dollar loans to Eurozone banks.

This intrinsically hyperinflationary policy will be accompanied by brutal austerity imposed on Greece, Portugal and Spain, for a start—and quickly on all of Europe. Thus, the brutal "Bruening model" imposed on Greece has now been extended as we had warned, with catastrophic consequences on the real economy of those nations. The whole package is insane and will not work. Furthermore, in those aspects that represent an expansion of the powers of the EU Commission, it violates even current EU treaties—let alone natural law.

EU governments have surrendered to the banksters. Don't let yourself be fooled: The intent is not to save countries from bankruptcy, such as Greece, Spain or Portugal; the intent is to bail out the bankrupt global financial and monetary system, by destroying nations and their populations.

As Lyndon LaRouche pointed out on Saturday, May 8: "Greece should not have been bailed out. They should have been, as a sovereign nation, gone through reorganization of their finances, under sovereign direction." Commenting on German Chancellor Angela Merkel's capitulation to the mega-bailout, LaRouche said: "This operation was entirely British. And you can say so. I can be quoted on this, publicly attributed, yes. The British system is in an existential crisis, and what happened on Wall Street on Thursday [the 10% market collapse] is a reflection of that existential crisis of the British system." LaRouche pointed to the Inter-Alpha Group of banks, which involves especially the banks of Spain, Portugal, Ireland, England and some others, which represents the core of the British system. This group is "intrinsically bankrupt" and this is "an existential crisis for the British Empire."

Under current conditions, solutions to the European crisis will not come from inside Europe. Only an outside factor—a global factor—can work. We are dealing with a global empire and only the Glass-Steagall reform will crash the empire. The outcome of the fight for Glass-Steagall in the United States will affect processes globally, including Europe.

Britain's Inter-Alpha Group Vampires Demand More Blood

May 11, 2010 (LPAC)—The $1.1 trillion pledged this weekend to feed the insatiable financial predators of the British Empire, is only the beginning of what they have planned—if LaRouche's Glass-Steagall firewall is not implemented immediately.

The European Central Bank (ECB) has announced that it will 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. This is the "nuclear option" of unlimited ECB money-printing that the British have been demanding for months, with the U.S. Fed being the guarantor of last resort through the swap mechanism.

"This sets a precedent for the rest of the life of the Central Bank," said the smug chief European economist at the Royal Bank of Scotland, the Inter-Alpha Group's flagship bank. "The ECB's intervention ... was necessary to short circuit the negative feedback loop which was getting more and more threatening for the global economy," said Jacques Cailloux.

But these same British financial interests are already saying that what was done was insufficient, and that more bloodletting will be needed. "EMU politicans and the ECB have now pressed the nuclear option," an ING bank strategist stated. "The central question from here is whether the cumulative measures can manage to stabilize the system." Bank Julius Baer's global chief investment officer agreed that the $1 trillion package "might temporarily calm nerves, but questions will come back later, on how they will pay for this package." 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."

"They are shooting for dictatorships," Lyndon LaRouche stated this afternoon. "We either stop this now with Glass-Steagall legislation, or it could be our last chance."

The Brutish Bastards Are At It Again!

THE BRUTISH BASTARDS ARE AT IT AGAIN!

 

By Lyndon H. LaRouche, Jr.

LEESBURG, May 10, 2010 (LPAC)-- 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 as the Federal Republic of Germany.

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.

TRIPLE CURVE EXPLAINED.

 

 LaRouche PAC Campaign Show: May 9, 2010

WEBCAST MAY 8 2010 A MUST SEE !

 WEBCAST MAY 8 2010 A MUST SEE !

 

 

 

The Glass Steagall Principle is a War Between British and US Interests

May 10, 2010 (LPAC)—Sunday saw a worsening of the collapse-crisis of the euro, with the British euro-bailout policy apparently claiming the government of German Chancellor Angela Merkel. The 27 fools of "Ecofin" — the finance ministers of the the so-called Eurozone countries, which have all bankrupted themselves by bailing out their banks while their revenues plunged in the crash — met all day in a race to announce as many as three new bank bailouts before the Asian markets opened on Monday, when a new stage of collapse is expected. Both British still-Prime Minister Gordon Brown, and British puppet Barack Obama, spent the weekend calling and pressuring Merkel for the new bailouts — which British Chancellor Alistair Darling said the UK intends to stay out of! The international rate for overnight lending among banks known as LIBOR, which had not changed by as much as one-hundredth of a point for eight months, suddenly doubled, and all the bank-money conditions of the early 2009 debt freezeup rose again from where they had been lurking just under the surface.

One action can suddenly and dramatically change the course of this disaster — an action by the United States, not Europe, and by Obama's adversaries, not Obama. That is the adoption of the Glass-Steagall policy long demanded by the most important of Obama's adversaries, economist and statesman Lyndon LaRouche.

LaRouche specified yesterday, as in Saturday's webcast, that the Glass-Steagall principle is virtually a matter of war between Britain and U.S. constitutional interest: "The clear threat to the United States of this British crisis, goes away if the U.S. adopts the Glass-Steagall policy put forward by Senators McCain and Cantwell. If it were to adopt the Glass-Steagall principle, then the British policy evaporates. If we go with my proposal, all of the crap is off the table: The United States is saved, the Brits go to Hell, and the Europeans are off the present hook. Their problem is still there, but now the problem can have a solution.

"It's now clear that some people were confused about this. Some people in the Democratic Party have opposed this, and the infection was spread from there. That's over. Nobody should be confused. The Glass-Steagall proposal from McCain and Cantwell is fully consistent with my intention and my policy over a long period of time.

"The U.S. adopting or coming close to adopting the Glass- Steagall policy would mean the sinking of the British pound. If we don't sink this British policy, we lose civilization."

"There's a virtual landslide for this, out in the mass strike among the American people. Get it through!"

WEBCAST May 8.  http://www.youtube.com/watch?v=i9Bglhprq_4

New British Bailout for Euro: How About Another $650 Billion?

May 10, 2010 (LPAC)—The British government and its puppet, Barack Obama, have pushed EU finance ministers and heads of state into new, huge panic bailouts "for the euro" — in which Her Majesty's UK government itself does not intend to take part. The new bailouts, being announced Sunday night in a rush before Asian markets opened, may total $650 billion (500 billion euros), according to continuing leaks from an all-weekend meeting of 27 finance ministers "to stop a sovereign-debt crisis from shattering confidence in the euro."

It won't succeed. As Lyndon LaRouche said on Saturday, "The attempt to pull a swindle ... using a bailout of Greece, to try to wreck the nations of the continent of Europe, the euro group, has backfired, and has struck at the heart of the system, the euro system, which is controlled by the British monarchy, the British Empire group." If the United States now adopts LaRouche's Glass-Steagall policy through the Senate, defeating Obama's moves to stop it, the British pound, and the whole British policy swindle, will sink to the ground.
*
With bank and bond credit conditions in the past week having plunged back to their "freeze-up" status during the crash phase of early 2009, three and perhaps more new bailout schemes were being whipped up by the finance ministers for instant attempts at implementation. Gordon Brown had called German Chancellor Angela Merkel, whose government is supposed to cough up the most bailout funds, on Friday and again Saturday to break her resistance to the schemes. Obama called Merkel on Friday and on Sunday and "stressed the urgency of all European Union members taking resolute steps to build confidence in the markets," confessed the White House.

But British Chancellor of the Exchequer Alistair Darling had the following nice formulation for Sky News: "When it comes to supporting the euro, that is for the Eurogroup countries [Britain is not one]. We need to show again today that by acting together we can stabilize the situation."

One scheme will add 60 billion euros to an existing 50 billion euro "currency stabilization fund" — up to now a backup facility for currencies of non-EU member countries — and turn it to "defending the euro." A second crazy element would let the European Commission, a wholly appointed supergovernmental bureaucracy, use the European Union's budget as collateral to borrow bailout funds, immediately for the sovereign debts of Spain and Portugal this week. A third scheme is to create a "European IMF," requiring all EU governments to cover any debts if one country defaulted on loans backed by its EU "partners." The Wall Street Journal reports the 27 fools pledged to accelerate budget cuts across the bloc, and devise severe sanctions for violations of the "Maastricht 3% rule." A fourth scheme is for the U.S. Federal Reserve to flood the European central banks with currency swaps liquidity. And "the European Central Bank" will probably play a role.

As "W" Bush's Treasury Secretary Hank Paulson once put it about the $700 billion TARP bailout, "We wanted to arbitrarily pick a very large figure."

In Response to Cuts Demanded by the IMF, Strikes Spread to Romania

May 9, 2010 (LPAC)—The mass strike ferment that has seized Greece is now spreading to Romania, as Romanian unions threaten a wave of strikes which could cripple hospitals, schools and public transport, in protest against draconian wage and pension cuts. Romanian President Traian Basescu announced the cuts on May 6, saying they were needed to ensure continuation of a EU20 billion aid package led by the International Monetary Fund, according to Reuters.

Romania's most powerful unions will meet Basescu today before an IMF review mission leaves Romania and leaders said protests similar to those in Greece could be launched if they do reach an accord. "The likelihood that we will strike is big as long as these draconian measures are not abandoned," said Marius Petcu, head of CNSLR Fratia union, which represents about 800,000 people. "I think in two weeks we will know whether we will strike. We are talking about hundreds of thousands of people that need to be consulted."