Comité pour la République du Canada / Committee for the Republic of Canada
Saving the Planet Now:
A GLOBAL 'GLASS-STEAGALL'
by Lyndon H. LaRouche, Jr.
February 8, 2010
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For any actually competent economist today, a global equivalent of a "Glass
Steagall" reform was implicit in President Franklin Roosevelt's basing his
1944 fixed- exchange-rate Bretton Woods system. It was the contrary actions
of President Harry Truman, made as concessions to Winston Churchill, and to
Wall Street, after Roosevelt's death, which sent the world careening, step,
by step, by step, into the direction of the presently terminal phase of
decline gripping the world today.
The ultimate consequence of the Truman administration's concessions to
London and Wall Street is, today, that all recipes known to me, for a so-called
"new Bretton Woods" contrary to my efforts, have been fraudulent in effect,
whether this was the intended effect, or not. Such has been today's outcome
of the official suppression of President Franklin Roosevelt's anti-Keynes,
Bretton Woods intention for the post-war world.
Today, without a kind of Glass Steagall reform, which would virtually wipe
out the monetarist features of both Wall Street's and of the City of
London's systems, the chances for escaping an already oncoming, planet-wide,
"new dark age,"were virtually "zilch"!
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The stunningly poor performance of the British empire's nominally Spanish,
and largely Brazil-based, Banco Santander during this past week, has
confronted the Euro system as a whole with a crisis for which that
institution has no visible remedy in sight. After all the ifs, ands, and
buts available to London's phrase-mongers have been spent, the fact persists
that the present Euro system has no remedy for its presently existential
crisis within the obvious present means at hand.
In fact, there is only one essential remedy, disband the present Euro system
under its just recently installed, present rules. Return to a Europe of
respectively sovereign nation-states, including immediate steps to
reestablish the Deutschemark, and break up the conditionalities which were
imposed upon Germany under the intentionally ruinous terms jointly dictated
to Germany by the heads of state and government Margaret Thatcher, President
Francois Mitterand, and a rather silly, but mean- spirited President George
H.W. Bush.
These and related, specific measures required to rescue western and central
Europe from the present failures of British domination can not be successful
installation without putting all of western and central Europe under the
U.S. equivalent of a Roosevelt-era designed "Glass- Steagall" reform.
This past week's exposure of the problematic features of much of the assets
within the so-called Inter- Alpha Group, such as Banco Santander, shows
clearly that those parts of the banking and related claims on which the
claimed financial strength of the Euro system had depended for its authority
have been of a quality either similar to, or, probably even much poorer than
the 2007- 2010 U.S.A. under the mismanagement of U.S. Presidents George W.
Bush, Jr. and Barack Obama. The crisis of Europe exposed by last week's
developments around the Inter-Alpha Group's environment, are, by their
nature, far less manageable than for a U.S.A. under its constitutional
system.
Those facts concerning the present international financial situation taken
into account, if the European continent returned to a status quo ante
situation prior to the installation of the present Euro system, as by
restoring the Deutschemark, a Glass-Steagall approach to reform there, would
permit immediate economic and financial reforms of the credit-systems needed
for launching the agro-industrial recapitalization of the economies of
Germany and its continental neighbors. Otherwise, without a "Glass- Steagall"
type of reform, executed in the spirit of President Franklin D. Roosevelt's
approach, there is little hope that Europe generally could overcome the
general form of general economic-breakdown crisis now mustering its forces
for a general breakdown of the existing European system.
The time has come to leave former British Prime Minister Tony Blair's smelly
scalp drying in the breezes surrounding the flagpole on which it hangs.
The Hopeful Option
During my January 30th
International LPAC Webcast, I emphasized that the monetary-financial
aspects of the present collapse of the European Union's economy, is
interlinked with the collapse of the physical economy of western and central
Europe due, chiefly, to the influence of "green policies." I emphasized the
fact, that as of the present time, the economic existence of Europe is being
doomed by the accelerating effect of so-called "green" policies which have
been largely premised on the demonstrably failed cult of "global warming,"
whereas it is the parts of the world which had rejected such so-called
"green policies" which are currently benefitting from vigorous investment in
high- technology progress in such basic economic infrastructure as mass
transportation and vigorous investment in nuclear power.
However, I am confident that once the citizens of European nations recognize
that a shift back to modern technology of capital-intensive investment in
basic economic infrastructure, industry, and agriculture is the wave of a
return to the future, the "green resistance" to European survival will, like
"an old soldier," "fade away."