http://cecaust.com.au/main.asp?sub=articles&id=2013_04_05_gs.html
LaRouche Movement Puts Glass-Steagall in International News
April 5, 2013 • 9:41AM
People from different corners of the globe are turning to the LaRouche movement to find an alternative to the breakdown crisis. To cite three examples from this week:
The "Support Group for the 11 Plural Left Deputies" blog (http://oncediputados.blogspot.com/) posted Helga Zepp-LaRouche's March 24 emergency webcast on Cyprus, along with the Movimiento LaRouche Espana's Cyprus declaration on April 2. The MLE statement calls upon the governments of Cyprus, Spain, and the rest of the region to adopt four principles: "No!" to the genocidal austerity...; leave the euro and return to national currencies...; establish a National Credit Bank and implement FDR's original Glass-Steagall Act...; and begin national reconstruction based on the LaRouche movement's Program for Southern Europe and Mediterranean within the World Landbridge.
The posting was headed by a "tweet" on Cyprus from the United Left's aggressive young deputy, Alberto Garzon: "There will be crisis for a long time, because Southern Europe is Dr. Mengele's laboratory for the Troika."
Ten days after being posted on the LaRouche Movement Spain's YouTube site, Lyndon LaRouche's webcast answer on the strategic implications of Cyprus has been viewed over 3,300 times.
For its part, Iran's international news channel, Press TV, interviewed EIR's Ed Spannaus on the U.S. economy on April 2. Spannaus hammered at urgency of getting Glass-Steagall restored, reporting on LaRouche PAC campaign to wipe out the speculators by restoring that law and restoring the Hamiltonian system, else there be mass starvation.
"Dossier Politico," an electronic daily followed by the political elites of Mexico's state of Sonora, published an op-ed on April 2 titled "Speaking of Cyprus: The Case of Mexico: An Overflowing Macroeconomy or a Macro Time-Bomb?" Author Leonardo Espitia demonstrates with Bank of Mexico stats that hot money has been flooding the Mexican economy: over $80.2 billion in foreign speculative investment entered in 2012 alone. With Mexican companies investing $25.6 billion abroad, Mexico has become an importer of speculative capital and an exporter of productive capital, and when a stampede of capital flight starts at the drop of a hat, the national financial system will collapse.
"The dangerous possibility made clear by the Bank of Mexico report, demands the immediate separation of the speculative investment from commercial banking activity, known in the United States as the Glass-Steagall law; the proposal which economist Lyndon LaRouche is pushing to keep the disintegration of the World Financial System from extending Cyprus-style looting throughout the planet, in combination with general war; the world conflagration which is foreshadowed in the conflicts orchestrated by the British Empire in Korea and Syria."
The "Support Group for the 11 Plural Left Deputies" blog (http://oncediputados.blogspot.com/) posted Helga Zepp-LaRouche's March 24 emergency webcast on Cyprus, along with the Movimiento LaRouche Espana's Cyprus declaration on April 2. The MLE statement calls upon the governments of Cyprus, Spain, and the rest of the region to adopt four principles: "No!" to the genocidal austerity...; leave the euro and return to national currencies...; establish a National Credit Bank and implement FDR's original Glass-Steagall Act...; and begin national reconstruction based on the LaRouche movement's Program for Southern Europe and Mediterranean within the World Landbridge.
The posting was headed by a "tweet" on Cyprus from the United Left's aggressive young deputy, Alberto Garzon: "There will be crisis for a long time, because Southern Europe is Dr. Mengele's laboratory for the Troika."
Ten days after being posted on the LaRouche Movement Spain's YouTube site, Lyndon LaRouche's webcast answer on the strategic implications of Cyprus has been viewed over 3,300 times.
For its part, Iran's international news channel, Press TV, interviewed EIR's Ed Spannaus on the U.S. economy on April 2. Spannaus hammered at urgency of getting Glass-Steagall restored, reporting on LaRouche PAC campaign to wipe out the speculators by restoring that law and restoring the Hamiltonian system, else there be mass starvation.
"Dossier Politico," an electronic daily followed by the political elites of Mexico's state of Sonora, published an op-ed on April 2 titled "Speaking of Cyprus: The Case of Mexico: An Overflowing Macroeconomy or a Macro Time-Bomb?" Author Leonardo Espitia demonstrates with Bank of Mexico stats that hot money has been flooding the Mexican economy: over $80.2 billion in foreign speculative investment entered in 2012 alone. With Mexican companies investing $25.6 billion abroad, Mexico has become an importer of speculative capital and an exporter of productive capital, and when a stampede of capital flight starts at the drop of a hat, the national financial system will collapse.
"The dangerous possibility made clear by the Bank of Mexico report, demands the immediate separation of the speculative investment from commercial banking activity, known in the United States as the Glass-Steagall law; the proposal which economist Lyndon LaRouche is pushing to keep the disintegration of the World Financial System from extending Cyprus-style looting throughout the planet, in combination with general war; the world conflagration which is foreshadowed in the conflicts orchestrated by the British Empire in Korea and Syria."
More Calls and Coverage of the Need for Glass-Steagall Restoration
April 5, 2013 • 9:44AM
Perhaps stimulated by the trembling of the world's economic and financial systems, trenchant remarks continue to be published on the need for restoration of Glass-Steagall.
* Bloomberg Money News reports that Brooksley Born (former head of the CFTC who opposed derivatives before being ousted), "said large lenders should be broken up to separate their investment and commercial banking activities." She told reporters at a Public Citizen forum in Washington recently, that banks must be "tasked with the job of deciding how best to split themselves up" under the supervision of regulators, and that "There should be rules imposed, perhaps something like Glass-Steagall." She is also quoted, "The Glass-Steagall Act, before it began to be eroded by the bank regulators, was a good idea, and the financial system was protected by that."
* David Stockman, former Michigan Congressman and Director of the OMB (1981-85), continues to attack the 1999 repeal of Glass-Steagall, in appearances for his ongoing book tour, along with attacks on Federal Reserve policy. Stockman poses all this in the context of his free-market ideology, and other signature whacko opinions; but his remarks in support of Glass-Steagall are focused. They include:
—MSNBC blogsite The Cycle reports, after a thumbnail sketch of how bad the economy is, on Stockman's statements for Glass-Steagall, in his new book. "He argues that 'corrosive financialization' — the ability of banks to package virtually any risk or slice of the market into a purchasable product — has 'turned the economy into a giant casino.' To buck this trend, Stockman proposes that banks be pushed 'out in the cold.' The government should make them compete like normal companies, with no deposit insurance or easy money from the Fed — basically a version of restoring Glass-Steagall.
—In a Wall Street Journal Market Watch interview, Stockman said, "I say deposit insurance is the great moral hazard. It's what allowed the banks after we repealed Glass-Steagall to grow to this enormous magnitude and engage in all this speculation. And remember, Glass was opposed to deposit insurance, Steagall wanted it, Glass said, 'OK, the quid pro is we're not going to let the banks get outside the narrow walls of commercial banking.' Now when you repeal Glass-Steagall, you got the worst of both worlds. You got moral hazard of deposit insurance without the regulatory protections and separation of basically trading and gambling as Carter Glass would have seen it from deposit banking."
* Finally, an article published April 3 in The Herald of Newcastle, Australia, has a sarcastic take on the world after the repeal of Glass-Steagall, which includes the following:
"As I recall, the US government — its politicians heavily funded by big private banks — dismantled some Depression-era laws (the Glass-Steagall Act) that prohibited banks from gambling with depositors' funds.
"The grateful banks immediately gambled everything on some weird products called 'derivatives'. These were often invented and marketed by other branches of the same privately owned banks. Mostly these products were like sports gambling, only more stacked and rigged, if you can imagine that.
"Lots of people bought derivatives from the big private banks because those banks had paid some ratings agencies a lot of money to check them out and luckily for the banks the ratings agencies failed to notice the products were garbage and gave them five-star ratings."
"What we do know is that, ever since it became apparent that the big bailout didn't solve the problem, everybody has been wondering what they should do next time this happens. And it will happen again because nobody put the Glass-Steagall laws back to stop the banks making it happen again."
The article goes on to relate events from the 2008 bailouts, to last weeks' Cyprus "bail-in." The article is at http://www. theherald.com.au/story/1405323/greg-ray-sleight-of-hand-bankers/ ?cs=391
* Bloomberg Money News reports that Brooksley Born (former head of the CFTC who opposed derivatives before being ousted), "said large lenders should be broken up to separate their investment and commercial banking activities." She told reporters at a Public Citizen forum in Washington recently, that banks must be "tasked with the job of deciding how best to split themselves up" under the supervision of regulators, and that "There should be rules imposed, perhaps something like Glass-Steagall." She is also quoted, "The Glass-Steagall Act, before it began to be eroded by the bank regulators, was a good idea, and the financial system was protected by that."
* David Stockman, former Michigan Congressman and Director of the OMB (1981-85), continues to attack the 1999 repeal of Glass-Steagall, in appearances for his ongoing book tour, along with attacks on Federal Reserve policy. Stockman poses all this in the context of his free-market ideology, and other signature whacko opinions; but his remarks in support of Glass-Steagall are focused. They include:
—MSNBC blogsite The Cycle reports, after a thumbnail sketch of how bad the economy is, on Stockman's statements for Glass-Steagall, in his new book. "He argues that 'corrosive financialization' — the ability of banks to package virtually any risk or slice of the market into a purchasable product — has 'turned the economy into a giant casino.' To buck this trend, Stockman proposes that banks be pushed 'out in the cold.' The government should make them compete like normal companies, with no deposit insurance or easy money from the Fed — basically a version of restoring Glass-Steagall.
—In a Wall Street Journal Market Watch interview, Stockman said, "I say deposit insurance is the great moral hazard. It's what allowed the banks after we repealed Glass-Steagall to grow to this enormous magnitude and engage in all this speculation. And remember, Glass was opposed to deposit insurance, Steagall wanted it, Glass said, 'OK, the quid pro is we're not going to let the banks get outside the narrow walls of commercial banking.' Now when you repeal Glass-Steagall, you got the worst of both worlds. You got moral hazard of deposit insurance without the regulatory protections and separation of basically trading and gambling as Carter Glass would have seen it from deposit banking."
* Finally, an article published April 3 in The Herald of Newcastle, Australia, has a sarcastic take on the world after the repeal of Glass-Steagall, which includes the following:
"As I recall, the US government — its politicians heavily funded by big private banks — dismantled some Depression-era laws (the Glass-Steagall Act) that prohibited banks from gambling with depositors' funds.
"The grateful banks immediately gambled everything on some weird products called 'derivatives'. These were often invented and marketed by other branches of the same privately owned banks. Mostly these products were like sports gambling, only more stacked and rigged, if you can imagine that.
"Lots of people bought derivatives from the big private banks because those banks had paid some ratings agencies a lot of money to check them out and luckily for the banks the ratings agencies failed to notice the products were garbage and gave them five-star ratings."
"What we do know is that, ever since it became apparent that the big bailout didn't solve the problem, everybody has been wondering what they should do next time this happens. And it will happen again because nobody put the Glass-Steagall laws back to stop the banks making it happen again."
The article goes on to relate events from the 2008 bailouts, to last weeks' Cyprus "bail-in." The article is at http://www. theherald.com.au/story/1405323/greg-ray-sleight-of-hand-bankers/ ?cs=391
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