It's the British Empire That Is Collapsing

May 3, 2010 (LPAC)—The finance ministers of the European Union met on Sunday and ratified a 104 billion euro bailout of Greece, to be run through the IMF and the EU, as rioters in the streets of Greece made clear that they are not going to tolerate the murderous conditionalities that the Greek government was forced to swallow.

The reality of what happened over the weekend, however, is radically different from what is being reported in the trans-Atlantic media. In reality, it is the entire British Empire that is hopelessly bankrupt and going down. The sovereign defaults looming in Greece, Portugal, Spain, Ireland, Italy, and who knows where else, are just symptoms of the final disintegration of the entire British offshore financial swindle.

Lyndon LaRouche emphasized that this reality must be driven home, over and over. The British Empire is finished, bankrupt, doomed. The entire European Monetary Union (EMU) swindle, imposed on Europe by Maggie Thatcher and her French poodle Francois Mitterrand (and George H.W. Bush), is now crashing down. London will try to blackmail Germany into bailing out the EMU, but that is not going to happen, and it won't work anyway. London is trying to bring down Germany, as all of Europe plunges into collapse. Unless the concept is clear—this is the British Empire that is bankrupt—mistakes are going to be made. Nothing can save the British Empire, but they could bring down the entire world with them. And that is what has to be stopped.

Some Establishment types in the U.S. are starting to recognize bits of this reality. David Ignatius, the CIA agent turned editorial writer, wrote a panicked piece in the Sunday Washington Post, warning that the Greek default, which is inevitable, could trigger a process of contagion and panic like what happened on Wall Street in 2008 after the collapse of Lehman Brothers. The spread of the crisis to Spain, Portugal, Ireland and Italy is also inevitable, and the result could be a run on big European banks that hold this toxic debt. A sovereign debt crisis could become a banking crisis, he warned. The New York Times was more precise, providing a flow chart of the exposure of all of Europe's leading banks, to the sovereign defaults by the so-called PIGS countries of southern Europe. Like the alliances that drew one country after another into World War I, a default by a single nation would send other countries tumbling, the Times admitted. According to the Times account, based on BIS data of internal cross-border sovereign debts in the EU, the five countries all verging on sovereign default—Greece, Portugal, Spain, Ireland and Italy—have a total of $3.9 trillion in debts to one another, but principally to Germany, Britain, and France. This is not a bailout of Greece. This is a bailout of the Euro system, hedge fund manager Eric Fine told the Times. In reality, it is not the Euro system that is being wiped out in the now unfolding bankruptcy marathon. It is the British Empire. Therefore, no survival is possible unless the British Empire system is replaced, as Lyndon LaRouche has uniquely said, by a Global Glass-Steagall bankruptcy reorganization.

Great Britain As The Next Greece

May 2, 2010 (LPAC)—Great Britain could become the next Greece sooner than people may think. The Greek crisis began after the Pasok Party came to power in October and had a look at the books which showed them to have been "cooked" well done. The same could happen after the British elections this month. City of London mouthpiece Ambrose Evans-Pritchard revealed in the Daily Telegraph that government debt worth billions is currently "off the books."

Evans-Pritchard writes that this was revealed by Bob Janjuah of the Royal Bank of Scotland at a conference of bankers in Berlin. He told the conference: "Britain's debt metrics are pretty ugly when you include PFIs (private finance initiatives) they have off books. We think the real figure is over 100% of GDP already."

PFIs are a derivative of public-private partnerships and have been used extensively by the British government to finance infrastructure and other capital projects, including to build embassies, hospitals, schools, and even Britain's contribution to the European aerial tanker project. Since these are off the books, it is apparently not known publicly how much is actually involved but it obviously runs into the tens, if not hundreds of billions of pounds.

Janjuah called for the next government to immediately bring in the International Monetary Fund to do a "technical audit" of the government's books, so as to cover their ass, because they will not only find some nasty surprise, but will have to implement an austerity whose brutality will be unheard of the postwar period, after which they will be out of power for the next 25 years.

Evans-Pritchard quotes Ruth Lea, of Global Vision, a Euro-skeptic think tank representing the interests of the City of London, as saying, "any incoming government will need all the help and support it can get... The IMF is internationally respected, it is the obvious choice to get help from, not necessarily a loan, but support and moral backing in what is going to be an appalling situation."

No matter how many billions are hidden as PFIs, none of this includes the hundreds of billions in pounds that the government has used to bailout the British banks. Furthermore, now that the government virtually owns such banks as the Royal Bank of Scotland, it is responsible for their liabilities. The press and government have stopped publishing this figure.

Fall of the Republic HQ full length version.

Obama's Giant London-to-Chicago Climate Swindle: A Trillion Dollars Per Fart

May 1, 2010 (LPAC)—The climate hoax legislation now pushed by President Obama would provide trillions of dollars in loot for a gang of speculators whose central instrument, the Chicago Climate Exchange (CCX), was initiated by Obama himself.

While he was an Illinois state senator, Obama in 2000-2001 engineered private foundation funding for the start-up of the Exchange scheme, whose British, Wall Street, and Chicago beneficiaries soon boosted him rapidly into the U.S. Senate and the White House.

Under "cap and trade" or some similar U.S. government program, derivatives and other bets would be placed, through the Exchange, on how much carbon dioxide is not emitted by various entities.

The principal figures with Obama in this enterprise are British empire and allied American operatives including:

* Al Gore, the former Vice President now already a hundred-millionaire through this and related swindles;

* Maurice Strong, the British Empire Malthusian-genocide strategist;

* Goldman Sachs, now facing potential criminal charges for global looting;

* Fannie Mae, the Federal mortgage agency otherwise instrumental in bringing on the world credit blowout; and

* Chicago financier-strategists who invented derivatives and similar instruments to cripple and loot the economy.

Obama Creates a British Company

The Chicago-based Joyce Foundation was a Barack Obama ticket to power.

With State Senator Obama as the rising politician on the Joyce board of directors, the foundation gave $347,000 (in 2000) and $760,000 (in 2001) for "the inception, creation, feasibility and design of CCX," according to the history provided on the Climate Exchange's website.

French magazine Reseau Voltaire's Thierry Meyssan reports that Obama himself drew up the protocols or statutes of the Chicago Climate Exchange, acting as attorney and administrator for the Joyce Foundation.

Obama's Joyce board seat was taken over in 2002 by Valerie Jarrett, and she has since managed Obama's relationship to his sponsoring Chicago oligarchs.

The Chicago Climate Exchange was created as a British private company (LLC), to be managed from London.

The Exchange was the brainchild of Richard Sandor, known as "Mr. Derivative" and "principal architect of interest rate futures markets."

The Joyce money went through Sandor, who became chairman of the Exchange. As chief economist for the Chicago Board of Trade in the early 1970s, Richard Sandor and other monetarist fanatics converted the Board of Trade into a central global agency for the London-dominated parasitical financial speculation which was to replace the advanced industrial economy. Leslie Rosenthal, another derivatives strategist and former chairman of the Chicago Board of Trade, is a director of the Chicago Climate Exchange.

Blood and Gore in London

The Chicago Climate Exchange went into operation in 2003.

Former U.S. Vice President Al Gore promoted the sale of CXX stock to British investors.

In 2004, Gore and Goldman Sachs executive David Blood created a bank in London, called Generation Investment Management. The Gore London bank bought 10% of CXX shares.

David Blood brought other key Goldman Sachs speculator-executives over to the Gore bank. Then Goldman Sachs itself bought up to 19% of the Chicago Climate Exchange.

David Blood later worked wealthy Londoners to fund the 2008 Obama Presidential campaign.

Al Gore's mentor, Canadian Maurice Strong, is a director of the Chicago Climate Exchange. In the early 1970s, Strong as a British Royal Family/World Wildlife Fund and Rockefeller family representative organized the 1972 Stockholm environmental summit for the United Nations. The global warming hoax was subsequently promoted through Strong's United Nations apparatus, and by Strong's protege Al Gore. Strong's investment lieutenant Peter Knight became a top executive of Al Gore's London bank, co-owner of the Chicago Climate Exchange.

Obama now relies on the Maurice Strong-created UN apparatus as a global force to promote the multi-trillion dollar cap-and-trade swindle.

And Strong's team within the board of Chicago Climate Exchange includes these CCX directors:

Rajenra Pachauri, the notorious head of the UN Intergovernmental Panel on Climate Change that has been caught red-handed faking data; Elizabeth Dowdeswell, former head of the UN Environmental Program; Michael Jammit Cutajar, former head of the UN Framework Convention for Climate Change; and Thomas Lovejoy, former World Wildlife Fund executive vice presdient and science adviser to the UN Environmental Program.

THE GREATEST CRISIS IN MODERN HISTORY. Webcast January 8

 THE GREATEST CRISIS IN MODERN HISTORY.

Webcast January 8.

http://www.larouchepac.com/

EIR Exclusive Interview with Prof. Starbatty

May 1, 2010 (LPAC)—Prof. Joachim Starbatty, one of the Four Professors who will file a constitutional complaint against the EU bailout policy, has given an exclusive interview to the LaRouche publications. The interview will be immediately posted in the German EIRNA webpage, in order to exploit the news effect on the web, and will appear in the coming issue of Neue Solidaritaet.

In the interview, Starbatty says that as soon as the German government issues a bill for a participation in the Greek bailout, the four professors "will proof the text and immediately act." If the Constitutional Court supports the complaint, "this will create a dynamic situation. This means that an exit of Germany [from the Euro] is not excluded." If this happens, other nations will follow, giving birth to "a new, stable bloc." This would be less painful than it seems, and "the United States would gain an ally in any future reorganization of the world currency system and the global economy."

The EU intention to introduce a control mechanism on national budgets "is the development of the EU into a quasi-federal state through the back door. This conflicts with the decision of the German Constitutional Court on the Lisbon Treaty." Article 136 of the Lisbon Treaty, used by EU leaders to back their intentions, "is no basis for a transfer of political competencies. The Bundestag must express its opinion on that."

Prof. Starbatty denounces the shock therapy imposed on Greece as "fatal." "It is like German Chancellor Bruening's policy in the early '30s — in a severe recession, to cut expenditures, increase taxes, freezing and cutting wages. Bruening did that in order to gain a reputation on the international capital markets. The Greeks are currently in a similar situation. No other industrial country is carrying out this Bruening-like policy, because it leads from a recession into a depression."

Instead, Greece should leave the EMU and its "Euro-debts should be cut according to the [currency] devaluation. The banks should participate in the consolidation; they consciously took a high risk."

The interview will soon be available on LPAC and EIR.

Former Nazi Bank To Rule The Global Economy

European Central Bank chief Jean-Claude Trichet’s announcement that the Bank for International Settlements is to become the primary engine for global governance is a shocking admission given the fact that this ultra-secretive menagerie of international bankers was once controlled by top Nazis who, in collusion with global central banks, funneled money through the institution which directly financed Hitler’s war machine.

During a speech to the elitist CFR organization earlier this week, ECB head Trichet said that the Global Economy Meeting (GEM), which regularly meets at the BIS headquarters in Basel, “Has become the prime group for global governance among central banks”.

The GEM is basically a policy steering committee under the umbrella of the Bank for International Settlements. In its current form, the BIS, which itself is not accountable to any national government, is comprised of banking chiefs from global central banks, most of which are private and also have no responsibility to their nation states or their citizens.

The board of directors who control the BIS include Federal Reserve chief Ben Bernanke and Bank of England head Mervyn King, as well as Trichet himself.

So how did the Bank for International Settlements get started? The BIS was founded in 1930 by Governor of The Bank of England, Montague Norman and his German colleague Hjalmar Schacht, who later became Adolf Hitler’s finance minister.

The bank was initially founded in order to facilitate money transfers related to German reparations arising out of the Treaty of Versailles, but by the start of the second world war, the BIS was largely controlled by top Nazi officials, people like Walter Funk, who was appointed Nazi propaganda minister in 1933 before going on to become Hitler’s Minister for Economic Affairs. Another BIS director during this period was Emil Puhl, who as director and vice-president of Germany’s Reichsbank was responsible for moving Nazi gold. Both Funk and Puhl were convicted at the Nuremberg trials as war criminals.

Other BIS directors included Herman Schmitz, the director of IG Farben, whose subsidiary company manufactured Zyklon B, the pesticide used in Nazi concentration camp gas chambers to kill Jews and political dissidents during the Holocaust. IG Farben worked closely with John D. Rockefeller’s United States-based Standard Oil Co during the second world war.

Baron von Schroeder, the owner of the J.H.Stein Bank, the bank that held the deposits of the Gestapo, was also a BIS director during the war period.

As Charles Higham’s widely acclaimed book Trading With The Enemy, How the Allied multinationals supplied Nazi Germany throughout World War Two points out, several parties at the Bretton Woods Conference in July 1944 wanted to see the Bank for International Settlements liquidated, because its role in aiding Nazi Germany loot occupied European countries during the war. Norway called for the bank to be shut down, a view supported by Harry Dexter White, U.S. Secretary of the Treasury and Henry Morgenthau, but the BIS survived despite its highly contentious Nazi influence.

 

More: http://www.infowars.com/former-nazi-bank-to-rule-the-global-economy/

Greek Crisis Is City of London/ECB Crisis

April 30, 2010 (LPAC)—It is now being acknowledged, as Lyndon LaRouche has said, that the "Greek crisis," and even the so-called "sovereign debt crisis," are in reality the sinking of the entire European banking system centered on the City of London and the European Central Bank.

Interest on Greek two-year bonds at one point reached an astounding 38% yesterday. They were trading at 1.2% in November, and yesterday, 15% when the day began. These rates only indicate that the so-called "market" is already factoring in a default or restructuring.

In a commentary in the Financial Times, Mohamed El Erian, chief executive of the bond trader, Pimco, wrote under the headline, "The Greek Crisis Now Endangers The Private Sector": "The already material risks of disorderly bank deposit outflows and capital flights are increasing. The bottom line is simple yet consequential: The Greek debt crisis has morphed into something that is potentially more sinister for Europe and the global economy. What started out as a public finance issue is quickly turning into a banking problem too; and has become a full-blown crisis for Europe."

Nonetheless, any restructuring will blow out London and the ECB. Even Ambrose Evans-Pritchard writes that "Greece knows it can opt for default at any time, setting off an EMU-wide crisis and bringing down Europe's banks. It also knows that key figures in the Bundestag favor debt restructuring." In this regard he mentions Volker Wissing of the finance committee and Leo Dautzenberg from the Christian Democrats. The London Times reports that even Irish Foreign Minister Michael Martin made comments that Greece's debt must be restructured, which was immediately denounced by Finance Minister Brian Lenihan.

While French and German banks hold the lion's share of Greek debt, it is British banks which hold the Spanish and Portuguese debt. A report to investors Credit Suisse, according to the Daily Telegraph, said that British banks hold 100 billion pounds worth of Greek, Spanish, and Portuguese debt. This includes 25 billion pounds in Greek and Portuguese debt and 75 billion in Spanish debt. Of that, Barclays holds 40 billion pounds, which does not include "daily positions in Barclays Capital. Inter-Alpha's Royal Bank of Scotland, which is 84% owned by the British taxpayer, holds 30-35 billion pounds, mostly of Spain's, the land of Banco Santander.

As for Greece, the BIS claims it owes $240 billion (160 billion pounds) overseas, with France and Germany holding $75 billion and $45 billion respectively. But also Fortis, Dexia, CASA and Societe Generale are in the game. So, when it is finally recognized that Greece has gone, the ECB goes under, and when Spain and Portugal go down, the City of London crumbles.

As for Britain following Spain and Greece, the Guardian notes that while Britain still holds its AAA rating, it is the only country with this rating that is also rated "negative."

Obama's Big Lie

April 30, 2010 (LPAC)—In his weekly radio address of April 24, Obama said, "GM announced that it paid back its loans to taxpayers with interest, fully five years ahead of schedule."

Earlier, on April 21, White House Press Secretary Robert Gibbs had twittered his followers: "BIG NEWS: GM pays back US $6.7 billion used to save jobs. BIGGER NEWS: Payment was 5 years ahead of schedule." The White House released a special report on the auto industry later in the day, claiming that the payment shows that the White House bailout was successful and the auto industry on the right path, if not yet out of the woods. Lunatic Larry Summers couched the GM payment as downright historical, writing in the White House blog the same day that "this turnaround wasn't an accident of history."

GM's payment was indeed no accident. The money GM used to repay the TARP loan came from... another TARP account managed by Timothy Geithner's Treasury Department!

Typical of Obama, the White House is simply lying.

In fact, the day before GM "paid," and the White House lied, the Special Inspector General for TARP, Neil Barofsky, testified to the Senate Finance Committee, that GM was not using GM earnings to repay its debts to the U.S. taxpayer, but had been using TARP funds from a special Treasury Department escrow account since the fourth quarter of 2009.

Not everyone being fools, a television interviewer asked GM Vice Chairman Stephen Girsky on the same day the White House was all a-twitter over the great payment: "Are you just paying the government back with government money?" Girsky shuffled, "Well, listen, that is in effect true, but..."

Furthermore, the amount "paid" on April 21 was less than 13 percent of the $52 billion in federal bailout funds GM had received. The remainder of its debt to U.S. taxpayers was converted into stock, which GM piously insists it still intends to pay off.

Documentation of the major features of this fraud, and a demand for explanations by April 30 from the Treasury Department, are contained in a letter sent by Sen. Charles Grassley, the ranking member of the Senate Finance Committee, to Secretary Geitner, on April 22. Sen. Grassley suggests that the Treasury Department, in fact, decided to release sufficient funds for GM to pay off much more than the quarterly payments it began making in 2009, after Senators objected to administration insistence that GM be exempted from its proposed TARP excise tax.

In Senatorial tones, Grassley points out: "It is unclear how GM and the Administration could have accurately announced yesterday that GM repaid its TARP loans in any meaningful way. In reality, it looks like GM merely used one source of TARP funds to repay another. The taxpayers are still on the hook, and whether TARP funds are ultimately recovered depends entirely on the government's ability to sell GM stock in the future. Treasury has merely exchanged a legal right to repayment for an uncertain hope of sharing in the future growth of GM. A debt-for-equity swap is not a repayment."

Complete Denial of Reality: The Same Thing as in Weimar, 1923

April 30, 2010 (LPAC)—The Quixotic emergency drive for a "bailout" of Greece's creditors, launched from London, has triggered a disintegration of the Euro system as a whole, and is threatening a panic collapse of Europe's banks. As German Chancellor Merkel and others have redoubled their efforts to force through the bailout, its costs have tripled from $40 to $120 billion Euros; but right behind that, there is the $1.3 trillion Euro exposure to Greece, Portugal and Spain together,— especially Spain, and especially Britain's exposure to Santander's Spain.

The interest rates on Greek debt have been soaring hour-by-hour, reaching 35% at one point on Wednesday. But even at those rates, Greek debt is not being bought; rather, it is being dumped wholesale on the markets.

As European leaders were being swept about helplessly by waves of panic and despair yesterday, Lyndon LaRouche said, "I don't think they have anywhere near an intelligent response to the situation. They refuse to admit its character; there is no such thing as a safe bailout. They've already screwed things up. What there is, is take down the effort of the bailout: forget it! It's not going to work; it's not possible at this time. And only people with delusions can think that there is something possible. It's hopeless, not for every country, but it's a hopeless case for the Euro system. The Euro system is essentially finished. And that's what we should say: the Euro system, in principle, is finished now. You can save the individual nations, or at least some of the nations, but this whole idea of bailing out Greece was lunacy. There was no reason to start that countdown. All you have to do is suspend everything; put it under protection. Most of the debt should be cancelled; maybe a large part of that debt is fake. How much of the debt is fake? We haven't been told! Therefore, you should put it through bankruptcy reorganization, searching for and eliminating all debt obligations which are not justified."

The key is that doomsday has ALREADY arrived. The world financial system has already crashed, and events now in Europe are just proving that to be the case. With the fall of the Soviet Union, the doomsday process began. Now, today, doomsday has arrived. We are seeing a 1923 Weimar crash on a global scale. The crash has occurred. Look at history, including the Weimar crash of 1923. The first phase of that crash was denial. The whole thing was based on denial; on the hope that some miracle is going to bail everything out. Once all the assumptions based on that denial failed, only then was there recognition that something drastic had to be done. In the Weimar case, it was a contained situation, but today the crash is global. The crash of the world system is a fait accompli, and the European events are just playing out with a desperate denial for the moment. It's the same kind of thing as Weimar: it's a denial of reality, because they're afraid to face reality.

It points up the extent of our responsibility. "We have to be the strong people," LaRouche said. "There are no others available."

Vaclav Klaus On Front Page in Germany: The Euro Was A Mistake

April 29, 2010—The Czech President, who also gave a speech at Berlin's Humboldt University yesterday, has an exclusive interview with the Frankfurter Allgemeine Zeitung, introduced with an article on the German daily's front page (!) under the headline: "Klaus: The Euro Is To Blame For the Greek Crisis—Currency Union Has Failed." The entire interview is then printed on page 7 — in itself remarkable, as the FAZ is the mouthpiece of the Frankfurt banking center, including the ECB.

Klaus says in the interview, which runs under the headline, "The Euro Was a Mistaken Decision," among other things: "My position is the negation of this idea of an ever-closer Europe.... I do not want a Europe on the basis of supra-nationalism, I want a Europe based on the cooperation of governments and of the European states, not some Europe somewhere and then the regions of Europe."

Klaus says that he is for "integration of the markets, for the economic integration, that is for liberalization, for opening up and for the elimination of all barriers. But the political integration, which I call unification, is something completely different, and I am afraid of it. I have been saying that for a long time. Afraid, really afraid. For, what is threatened in Europe, today and especially after the Lisbon Treaty? Freedom and prosperity."

Klaus evades a straight answer to the FAZ's question whether he would rather abolish the euro, by saying that Czechia is not part of the euro, that is rather the job of the euro members to think about it. "Naturally, you can have the euro, but the costs of its existence are enormous." Czechia may one day join the euro, "on the condition that the euro-zone still exists, then."

At least the argument made by the eurocrats, that if Greece had not had the euro, its sovereign default would already have occurred, is categorically rejected by Klaus: "Greece needs a devaluation by 40%, but it no longer has the drachma. The alternative were a lowering of wages and salaries by 40%, but that is not too easy in a democratic society. The real cause of the tragedy is not the rational or irrational economic policy in Greece, it is the euro that has caused this tragedy. Without the euro, the Greek politicians could solve this crisis with the instruments that have been in use for centuries." The alternative, within the euro system, is "the transfer of tax money from other countries of the currency union," and against that, "there must be resistance—why should the German taxpayer subsidize Greece? It is a legitimate question to pose." At another point of the interview, Klaus said that IMF aid to Greece is illegal; the IMF was only permitted by its statute to help the euro-zone as a whole.

"In terms of the economic growth and the economic stability, the euro-zone has failed long ago. But if we talk about the formal failure of the currency union, we have to take into account how much has already been invested politically into this project. The politicians will not allow the euro to fail, but the costs of that will be very high."

And, Klaus fears that this Greek crisis will be misused by Brussels to strengthen its supranational control of the European countries.