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
21 February 2018
'Bail-in' means a crash is coming—break up the banks now!
The way the Australian government spirited the APRA bail-in
bill through Parliament on 14 February betrayed its whiteknuckle
desperation to enact the law before a financial crash.
Passing such sweeping powers with only seven senators
present (p. 3) was not a show of strength by the government
and the banks—it was the only way they could get it through.
The CEC's successful mobilisation of thousands of people to
oppose the bill had forced the government, the Senate committee,
and the regulators to scramble to coordinate their denials
that the bill allows the bail-in of deposits. If all MPs and
Senators had voted on the bill—as they should have—there
was a real risk that more would have asked questions and
would not have been satisfied with the flimsy answers. Not
only were the parliamentary debates conducted "discreetly",
but there is evidence that for this bill, the leaders of the major
parties did not follow the usual procedures for discussing
impending legislation in their caucus meetings. The only
reason there can be for this is that they wanted to keep their
members in the dark.
Overall it was a shocking demonstration of how undemocratic
parliament can be, but also of the determination of
Australia's ruling class and financial elite to insure their failing
system before the crash. The passage of the bill has coincided
with a sharp increase in warnings of an impending financial
crash in Australia. A source has reported to the CEC
that one of the Big Four banks is "on edge" about the financial
system blowing up: "There is no dispute in the bank about
'if', it is about 'when'."
Economist and former Liberal Party leader John Hewson
wrote a stern warning in the 15 February Sydney Morning
Herald headlined, "When the next financial crisis hits, there
will be little the RBA can do about it". Hewson wrote: "Rather
than deal with its structural causes, the response of authorities
to the last crisis 10 years ago was to flood the world with
liquidity.... All this has now been magnified by massive (and
unparalleled) leverage, with grossly overvalued stock and
bond markets. ... Global debt has increased considerably
since the GFC, almost
to some US$233 trillion
more than three
times the size of the
is staggering", he
"We in Australia
are particularly exposed
to another crisis
debt (mostly mortgages)
at historic levels,
the cost of living
blowing out, with
constrained, and job
our banks still importantly
dependent on offshore funding, and having pursued
risky lending practices. The Reserve Bank is powerless
to do very much at all—probably just watch from the sidelines,
In news.com.au on 8 February, another economist, John
Adams, spelt out "Ten signs we're heading for 'economic Armageddon'",
an update of his original warning one year earlier.
Adams warned that the $4 trillion "bloodbath" on the stock
market was the opening act of a major crash being brought
on by record debt levels, rising interest rates and derivatives.
While John Hewson is right that the RBA's usual tools won't
work, there is something the government can do—a GlassSteagall
break-up of the banks. As much as the banks hate it,
this solution keeps coming up. "Royal commission chief Kenneth
Hayne should break up banks", financial commentator
Alan Kohler wrote in the 17 February Australian. In his defensive
speech on the bail-in bill justifying his sell-out, Greens
Senator Peter Whish-Wilson nevertheless called for an MP to
introduce a private member's bill on Glass-Steagall, so there
could be a debate. The CEC is drafting legislation right now
for that purpose. We too are racing the clock to enact our reform
before the next crash, the difference being that GlassSteagall
will protect the public from the banks, and not sacrifice
the public to save the banks.
Articles include the following:
- Government sneaks through APRA 'Bail-in' law
- CEC's response to Treasurer's 'talking points' on APRA law
- Greens support bail-in but open debate on Glass-Steagall
- APRA charade will increase risk, not lower it
- Australian delegation to woo Trump on geopolitics, PPPs
- Crescendo to crash that only Glass-Steagall can pre-empt
- In effort to counter BRI, West forced to think infrastructure
- Catholic Bishop praises 'extraordinary' China
- Western Australia needs Belt and Road
- An admiral goes to Canberra
- Turnbull government's anti-China Jihad goes global
- Beware the 'democracy' drumbeat
- CEC's bail-in mobilisation goes viral!
- Build the Clarence River Scheme!
- The History of the Founding of Australia
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