Breakdown Crisis Out of Control:
Urgent Appeal for a Global Glass-Steagall System
by Helga Zepp-LaRouche
This Appeal was translated from German. To join Mrs .LaRouche in her appeal to parliaments and governments that they must protect their citizens by adopting a two-tier banking system immediately, please follow the instructions below.
August 12, 2011—It would be better if leaders found the courage to openly admit what is now obvious: The global breakdown-crisis of the financial system is out of control; it is global; there is a danger of a meltdown of the financial system and the real economy, which threatens to dwarf the Crash of 1929 and the subsequent Great Depression—and that governments have no idea what to do. Most of them have the dreadful suspicion that the European fiscal union dictated by London and the draconian austerity measures associated with it will not solve the problem, but indeed will create conditions throughout Europe such as those they are now seeing with the riots in Great Britain.
It is no wonder that we are also dealing with an unprecedented crisis of the credibility of governments, which have placed themselves at the mercy of "the markets" for the past four years, since the crisis erupted in July 2007. And instead of restraining these markets by re-regulation, they got roped in, with one "emergency" after another, to greater and greater concessions to the power of financial institutions, thereby transforming hundreds of billions of the private debt of the speculators into government debt, for which the population is now being punished, with huge austerity programs in the public budgets.
The financial sector, with one new "bailout" after another, expresses its gratitude by launching new speculative attacks, first against Greece and other EU "peripheral" states, and most recently against France and Germany, and by betting with credit default swaps (CDS) against these countries "as if the end of the world had come," according to Handelsblatt). At the same time, the credit downgrades of various countries by the rating agencies has produced a contraction of the completely uncontrolled so-called shadow banking, which, because of the leverage effect of credit derivatives, is causing a geometrically accelerating collapse. Ironically, it turns out that precisely the "most profitable"—and also the most risky—sector of the casino economy is the Achilles' heel of the system.
In this dramatic situation, the agents of the British Empire—whether the Financial Times, or European Central Bank head Jean-Claude Trichet, or European Commission President José Manuel Barroso, who, with his demand for an increase of the capital stock of the European Financial Stability Facility (EFSF), just two weeks after the July 21 EU summit, invoked a new "emergency"—are asserting that only the immediate establishment of a European economic government could stop the final collapse of the Eurozone. Only a European fiscal union would be bigger and more powerful than the markets, is the sophistical argument.
Of course, such a European economic government—as was planned from the very beginning by the architects of the European Monetary Union—would be able to enforce, supposedly more effectively, precisely what "the markets" want anyway, namely the most brutal cuts, as are now being imposed on Greece, Portugal, Italy, Spain, and France—except that the states concerned would then have absolutely no veto right to protect the common good of their countries, with such already mentioned social consequences as we see in the British riots.
Such elimination of the last remnants of national sovereignty would be the last step in a whole series of violations of the national constitutions of Europe, as was confirmed yet again in the 2009 "Lisbon verdict" of the German Constitutional Court in Karlsruhe, as well as even in the EU treaties of Maastricht and Lisbon. The ECB, violating its own statutes, has, for some time, been buying up the junk bonds of bankrupt states on the secondary market—thus causing hyperinflation instead of guaranteeing the stability of the euro—and acting clearly against the interests of European states and the general welfare of the citizens.
With this attack on constitutionality, which in the U.S. is taking the form of the White House-controlled "Super Congress," de facto destroying the power of Congress, and which in Europe is taking the form of an unconstitutional EU federal state, the representatives of this policy have deprived themselves of their own legitimacy. The evidence of their already visible failure is average youth unemployment of over 20%, which has produced a generation of the hopeless, with no future under the present system. A continuation and intensification of this policy, as would occur in a European fiscal union, would plunge the trans-Atlantic region into a new dark age, which would soon reach every nook and cranny of the Earth.
Faced with this existential threat, there is only one way out: a global, two-tier banking system in the tradition of the U.S. Glass-Steagall Act of 1933. The bill for a new Glass-Steagall Act, H.R. 1489, which was introduced by Democratic Rep. Marcy Kaptur (D-Ohio) in the U.S. House of Representatives, is now being cosponsored by 32 other Congressmen, and supported by the national trade union federation, the AFL-CIO; the National Farmers' Union (NFU); and numerous regional and local trade union and party institutions, city councils, etc.
I enumerate the necessary emergency measure:
Join me in directing an urgent appeal to parliaments and governments to fulfill their constitutional duty and to protect the common good of those they represent, by adopting a two-tier banking system immediately.
Partial List of Signers :
Sen. Alfonso Elías Serrano (PRI), Secretary of the Economic Development Committee
Sen. Arturo Herviz Reyes (PRD)
Gary Littlejohn, Briefings and Debates Editor, Review of African Political Economy
Fred Huenefeld, former member of Louisiana State Central Committee, Democratic Party
Felix Rumin, member of Massachusetts Russian Speaking Scientists Club, Boston
Mike Sperry, retired Chief Credit Officer at several mid-size U.S. banks
Dr. George Pararas-Carayannis, President, Tsunami Society International, Editor, Science of Tsunami Hazards
Dr.-Ing. G. Vardangalos, Electrical and Computer Engineer, NTUA, Freelancer
Dr. George O. Tsobanoglou, Professor University of the Aegean, Department of Sociology, President, International Sociological Association, Research, Committee on Sociotechnics & Sociological Practice (ISA-RC26)
Daniel Estulin, researcher and best-selling author
Blagoje Babich, Professor of International Finance, Belgrade
Dr. Vladimir Vracaric, economist
AUSTRIA (more available)
Prof. Dr. Peter Bachmaier, Vienna
Prof. Dr. Dr. Dipl.-Ing. Jan Gronsky, Prague
Oleg Bobrakov, writer and journalist, Moscow (with his own statement: "I unconditionally support the Call for a Global Two-Tier Banking System, published by Helga Zepp-LaRouche. I believe that its implementation can become an important step on the path toward averting a threat to humanity, surpassing in its danger the threat of Hitler's fascism, which we repulsed, and more wily and hypocritical.")
Alexander Nagorny, historian, Moscow
Valeri Babich, professor at the International Solomon University, member of Russian Academy of Natural Sciences, Ukraine/Boston
Alexander A. Ignatenko, senior scientist, Kremenchuk Regional Museum, Kremenchuk
Natalia Vitrenko, chairman of the Progressive Socialist Party of Ukraine
Mme Monique Marchal, retired teacher, Braine l'Alleud
Michaël Lebrun, Assistant (teacher) Department of Social and Labor Sciences, Free University of Brussels
Guillaume Dubost, President, Agora Erasmus, Brussels
Giovanni Temporini, certified translator, Fleurus
Mario Visinescu, entrepreneur, Hoofddorp
Vyron Lymberopoulos Airline pilot, Naarden
Jan Willem van der Poll, Drilling and Well Engineer, Hoogeveen
Reinhard Massberg, Bavaria, entrepreneur
Dr.-Ing. Hans-Jörgen Gottwald, Lower Saxony
Berthold Schreiner, violin maker, Baden-Württemberg
Peter Hoppe, employee, NRW
Michael Krumbachner, farmer, Bavaria
ENDORSE THIS APPEAL!
We invite government and elected officials, labor, agriculture, civic, political and other leaders to endorse this call by sending an email to: email@example.com with subject "I Support the Appeal for a Global Glass-Steagall System". Please include: your full Name, the title of the Office you hold, the name of the Institution or Organization in which you hold an office, the Full Street Address, City, State or Province, and Country of that Institution or Organization, and contact information (Phone Number and Email Address).