The Australian Alert Service is the weekly publication of the Citizens Electoral Council of Australia.
It will keep you updated of strategic events both in Australia, and worldwide, as well as the organising activities of the CEC.
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In this week's Australian Alert Service
20 September 2017
A national bank for a time of crisis
It's an open secret that a new financial crisis, dramatically
worse than the last, is imminent. Why else would the
Australian government be preparing crisis management
powers for APRA, the very regulator which aided and abetted
our banks in the inflation of a bigger financial bubble
than in 2007-08?
Instead of granting these crooks greater powers, which
amount to dictatorial control over the nation's finances, it
is time they were sent to jail. Instead, regulate the banks
with Glass-Steagall, separating any banking functions associated
with the real economy from the speculative domain,
and create a national credit system, the top-down principle
which will bring us through the crisis.
National credit was the cornerstone of the so-called
American System developed by George Washington's Treasury
Secretary Alexander Hamilton, which King O'Malley
introduced to Australia. His Commonwealth Bank provided
the engine to develop the nation and stability to protect
citizens from financial crises. "Such power", O'Malley said,
in a parliamentary speech 108 years ago, on 30 September
1909, "is an attribute of sovereignty ... and ought to belong
to none but the sovereign people exercised through ... Parliament
and Government in the interests of the whole people."
We must revive that model today, and scrap APRA and
its protection racket for predatory banks.
If Australia returns to national banking, we will find a
welcoming collaborator right here in our region. Since the
global financial crisis, China has adopted a global mission
to launch and sustain a global economic recovery, and share
with the world the methods to do it—which it also took from
the American System. China was the only nation which, following
the crisis, created credit for development, both domestic
and international, which has propped up the world
economy. As intended, its immensely successful Belt and
Road Initiative has drawn other nations into this approach.
It launched public credit institutions through which nations
can finance these projects, such as the BRICS New Development
Bank, the Asian Infrastructure Investment Bank
and the Silk Road Development Fund. China's own policy
banks, and its adherence
since 1993 to a GlassSteagall
to ensure financial
resources serve the productive
its commitment to
the credit approach. At
the 2016 Hangzhou G20
Summit, China proposed
a broad vision for a new
international financial order,
with development at
its core. Recently, China
has honed its ability to direct
credit towards development,
with new foreign
investment laws encouraging productive activity and discouraging
useless or speculative investment.
China's approach emulates the American System of Economics.
Following the USA's defeat of the British Empire,
it embarked upon a pioneering journey—how to forge an
economic system that would protect its hard-won sovereignty.
This required the unification of the American states,
strengthened by constructing national infrastructure and
building industrial and agricultural capabilities. Alexander
Hamilton created the financial architecture to make that
happen. Centred in a national credit bank, his system at
once dealt with America's grave debt crisis and funded the
development it desperately needed.
American System economist Henry Carey, an advisor
to Abraham Lincoln, wrote copiously about how America
had achieved this, and shared his writings with leaders of
Russia, China, Germany and Japan. Russia's Trans-Siberian
railway, Sun Yat-Sen's plans for rail and canal systems across
China, German Chancellor Otto von Bismarck's industrial
transformation of Germany, and Japan's Meiji Restoration
and industrialisation were all based on Carey's ideas.
Today it is China sharing the American System, but
here's the twist—the American System had been influenced
by Confucianism. Carey's mentor Benjamin Franklin had
closely studied the Chinese philosopher Confucius (551-
479 BC) and believed China "the wisest of nations", admiring
the industry of its people, their skill and standard
of living. The approach is universal, and it is time we all
take it up, together. If Australia goes with Glass-Steagall
and national banking, it will push our allies, the USA and
UK, in this direction.
Articles include the following:
- Don't let Treasury bureaucrats fob off calls for Glass-Steagall
- Big banks leave borrowers for dead
- APRA inquiry into CBA's money laundering
- Scientists expose media climate bias
- Thorium can prevent future energy crisis
- BIS admits derivatives hide $13 trillion in global debt
- More crash warnings as US Fed prepares to raise rates
- What might a post-QE financial crisis look like?
- Frustrated US businessman calls for infrastructure bank
- Obama commands lavish speaking fees from Wall Street
- Is clock finally running out on 9/11 cover-up?
- Stop genocide in Yemen!
- Brits, Saudis recruit Australians for Yemen genocide
- Escalate on Glass-Steagall!
- When Labor abandoned national banking
- ALMANAC: Syrian reconstruction ready for takeoff
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