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The New Citizen    Vol 7 No 2
May/June 2010

LaRouche on Global Debt Crisis:

“Enact Glass-Steagall, Now!”

May 25—As the global financial crisis continued to explode out of control, a crucial vote with international ramifications took place in the U.S. Senate on 20th May on the socalled “Financial Reform Bill”. Ostensibly designed to deal with the crisis, the bill is a piece of Wall St.-endorsed garbage. The real issue was whether the Senate leadership would allow a vote on a proposed amendment to it, to restore a “Glass-Steagall” firewall against precisely the kind of Wall St./City of London speculation which has caused the present crisis. “Glass-Steagall” was enacted in 1933 to rein in Wall St., to facilitate President Roosevelt’s infrastructureled economic recovery program, but was repealed at the demand of Wall St. and London in 1999. (See p. 2.)

Shortly before the May 20 vote, a most curious incident took place: the British Foreign Office declared that it would regard the renewal of Glass-Steagall as a “hostile act” against the British Crown and the City of London. Why in the world would the passage of U.S. domestic legislation be a mortal threat to Queen Elizabeth and the City of London? Because, as American economist and statesman Lyndon LaRouche has repeatedly emphasised, restoring Glass-Steagall is the first step to writing off quadrillions of dollars of derivatives and other speculative instruments, without which there will never be a recovery of the actual physical economy. But, acting as toadies for the British, President Obama and the Senate leadership rammed through the “Financial Reform Bill” without the Glass-Steagall amendment, despite its overwhelming bipartisan support.

The global financial crisis

The eruption of the eurozone debt crisis in early May is merely the latest in a series of ever-worsening global financial crises dating back to August 1971, when U.S. President Nixon, also acting as a flunky for Wall St. and the City of London, took the dollar off gold. That ended the fixed-exchange rate Bretton Woods system, and opened the door for unbridled speculation in currencies and other financial instruments. As investment drained out of the real physical economy of agriculture, industry, and infrastructure, into speculation, financial shocks came one after another in rapid succession. These included: the October 1987 U.S. stock market collapse, the greatest ever; the near collapse of the global system in 1997-98 with the “Asia”, “Russian bond”, and “LTCM hedge fund” crises; the “mortgage crisis” which erupted in August 2007, still ongoing; the near global crashes in 2008 and 2009, averted only when the U.S. and European governments bailed out the banks with an estimated $30-40 trillion; and the present “Greek” and “euro” crises.

Governments “solved” each crisis by pouring taxpayers’ money in to bail out the private banks, but each bailout only created a larger, even more explosive bubble for the next round. Now, physical economist LaRouche—whose track record of economic forecasting since 1956 is unmatched— warned on 20th May that, “The world as a whole stands on the edge of a sudden, overnight collapse…. We could wake up one morning, and find that we have no financial system at all—an instant plunge into a New Dark Age.” We must immediately shut down the quadrillion-dollar derivatives trade, the most volatile aspect of the bubble, LaRouche said. And, regardless of the 20th May vote, we must ram through Glass-Steagall in the U.S. as a model for the world.

A new, revolutionary phase of history

Were we dependent upon the existent political class of fools and traitors such as Obama, Kevin Rudd and their ilk, the world would never survive. Fortunately, however, an entirely new factor has emerged in U.S. and global politics over the past several months—a mass upsurge of populations of entire countries in response to the crisis. Beginning in the U.S. in August, for instance, hundreds of thousands and even millions of U.S. citizens took to the streets in opposition to Obama’s genocidal, Adolf Hitler-modeled “health reform bill” (which Kevin Rudd is now emulating). Over the past several months, a whole series of U.S. Senators and Congressmen from both parties, many of whom have held office for decades, have suffered shocking electoral defeats. Most stunning, perhaps, was the victory of LaRouche Youth Movement leader Kesha Rogers in the 2nd March Democratic Party Congressional primary election in the 22nd district in Texas. Campaigning relentlessly as a LaRouche Democrat for the impeachment of Obama (the head of her own party!), Kesha won 52% of the vote against two opponents, trouncing the Democratic party-endorsed candidate.

With LaRouche’s strategic leadership, this revolutionary upsurge offers enormous hope. So isn’t it time you joined the CEC and LaRouche, to help fight our way out of this mess?

Contents

LaRouche to Australia: Join in the Recovery
p. 1

Federal Election 2010:
CEC Hammers Genocide Policies
Including Craig Isherwood speech, "Destroy Empiricism and Genocide: Let's Go to Mars!"
p. 1-4

The Genocide File: The Campaign to Depopulate Australia
p. 2

What is "Glass-Steagall"?
p. 2

Australia Looted by London's "Carry Trade"
p. 3

CEC Flagship Campaigns, Federal Election 2010
p. 4

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LaRouche on Global Debt Crisis:
“Enact Glass-Steagall, Now!”

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