It's Not A "Greek Bailout;" It's A $5 Trillion Europe-Wide Blowout

May 4, 2010 (LPAC)-- What's going on with the British-inspired "Greek bailout," and the way it's being structured, is absolutely doomed to the worst possible failure, as LaRouche has insisted. Now, we have confirmed the $3.9 trillion figure for the combined public and private debt of Portugal, Italy, Ireland, Greece and Spain. British, German and French banks are exposed to $2 trillion of it. Not only that: there are $5 trillion of seriously troubled assets on the books of those banks, in total.

Merkel and Sarkozy agreed well over a month ago on a so-called "Greek bailout" as a concealed bailout of their own bankrupt banks. The so-called "Greek bailout" will be nothing but a passthrough to these bankrupt European banks, just as Paulson's and Obama's bailout of AIG was simply a passthrough to Goldman Sachs and other bankrupt Wall Street parasites. Especially after the new exposures of Goldman Sachs in April, Merkel and Sarkozy anticipate that an unvarnished proposal to bail out these bankrupt banks would meet enraged opposition, while the pretext of bailing out Greek sovereign debt might avoid some of that opposition.

The most dangerous tendency among those who say they oppose the so-called Greek bailout, is those who say that there is no guarantee that the Greeks will actually implement the brutal IMF austerity Papandreou has agreed to. They call for the creation of an independent commission, like a European-wide "Big MAC," to oversee the austerity,— just as Versailles oversaw the planned destruction of Germany. This would be the final blow to the sovereignty of every country in Europe.

The only way to deal with this in reality, is by Lyndon LaRouche's proposal for a global Glass-Steagall reorganization. This is why Obama must be removed from office at once; anything short of that doesn't work. The way to get a global Glass-Steagall through, is to ram it through in the U.S.A. Once it's put through in the U.S., it's a done deal that it can be put through internationally. You simply have to force it through in the U.S.

There are very credible reports that the votes are there in the U.S. Senate, for passage of Glass-Steagall. There were a lot of fence-sitters before the SEC's suit against Goldman and Levin's hearing, but now, no one wants to be seen opposing this sort of measure. On the other hand, the House of Representatives is unpredictable. LaRouche said: well, then ram it through the House first.

WEBCAST 8 MAY 2010