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GLASS-STEAGALL, NATIONAL BANKING AND NAWAPA XXI
2 May 2012
Click HERE for the PDF format The strategic, economic, and financial well-being of both Canada and the United States stands confronted with an existential threat, virtually unparalleled in their history. The driver for this threat is the breakdown of the international monetary system; the trigger is the imminent collapse of the euro system. In the United States, every measure that the Obama Administration has taken to bail out this monetary system, just as the Bush Administration did in 2007-08, has only made the situation worse. More than $29 trillion has been pumped into this bailout, whose hyper-inflationary damage could prove to be more deadly than the wars on three continents that it threatens to unleash. In Europe, we are witnessing hospital closings, school closings, factory shutdowns, but also frequent violations of national sovereignty and Constitutional law, the breakdown in public safety, and skyrocketing suicide rates in Greece and other countries, are the rule, not the exception, as European countries submit to the dictates of the made-in-London supranational bailout. In Canada, we are being told that Canada did better than the other countries during the “economic recession” and, according to Bloomberg Markets, among the six more solid banks in the world, four are Canadian. The newly released 46 page study [1] by the Canadian Centre for Policy Alternatives (CCPA) demonstrates, what a few political observers had suspected, that Canadian banks were indeed “bailed out” by Canadian and American government institutions and that "the support for Canadian banks reached $114 billion at its peak...” What the ideologically driven Harper government is refusing to acknowledge is that under globalization there are no such thing as durable prosperous countries! In every region of Canada we are seeing the increased destruction of people’s livelihood and the disastrous effect this has on communities. In Quebec, the brutish behaviour against the employees of Aveos and Rio Tinto-Alcan is symptomatic of a larger malaise that exists across Canada. Especially telling is the government disregard for advanced industries as we witness the near shutdown of our nuclear industry and the budget slashing in our space sector; this represents a reckless disregard for the future of coming generations of Canadians. Canadians should be not only outraged but be asking the question: How many more Attawapiskat before we finally decide to implement a genuine Northern and Arctic development policy? A renewed 1933 design of Glass-Steagall is absolutely urgent as the only, presently feasible approach to halting the general breakdown of the entire trans-Atlantic economic system. The Historical Solution: It was Alexander Hamilton’s design of a credit-system based on national banking, which was to serve as the prompting and essential design of the original Federal Constitution of the United States. The key to the successive critical advances in the creation of physical wealth in the United States has always rested, ultimately, in the decision by great Presidents to wield economic principles embedded in the Constitution to foster large amounts of public credit for the "internal improvements” of the nation. These lawful economic weapons must now be wielded again, both in Canada and in the United States, with some coordinated Glass-Steagall action, against those very same forces centred in London and Wall Street that Franklin Roosevelt accurately denounced as "economic royalists". Isaac Buchanan, the principal founder of the great industrial complex of Hamilton and one of Canada’s leading 19th century nation-builders, was an enthusiastic supporter of “American System” economics and influenced by the writings of Abraham Lincoln’s economic adviser Henry C. Carey. A key co-thinker of Buchanan was William Hamilton Merritt, the father of Canada’s canal system, and a crucial railroad pioneer. Merritt advocated building a comprehensive system of canals and railways linking inland waters with the ocean, a scheme that foreshadowed the opening of the St. Lawrence Seaway over 100 years later [2]. These nation-builders were defenders of a policy of productive public credit. NAWAPA XXI: It is now a vital question for Canada and the United States to join forces again, as sovereign nation-states, to build now a new continental-wide infrastructure project as we did over 50 years ago, with the construction of the St-Lawrence Seaway and a few years later with the development of the Upper Columbia River for hydroelectric generation and flood control. A new alliance would be possible between the three nations presently associated with NAFTA that would reject the free trade NAFTA axioms of cheap labour imports from Mexico and adopt a progressive policy capable of increasing the cognitive powers of labour in each national sector. This new paradigm shift in favour of a continent-wide biospheric engineering project can be achieved through the immediate enactment of a global Glass-Steagall law modeled on the 1933 Roosevelt legislation, and the subsequent establishment of a system of public credit through the construction of the North-American Water and Power Alliance (NAWAPA), potentially the greatest science-driver leap forward in economy known as possible in the world today. NAWAPA XXI [3] will create a continental system of water regulation to redistribute 11% of now-wasted runoff waters of northern Canada and Alaska to make the Great American Desert bloom, and turn would-be flood waters in one area into the means of fighting drought in another, all through the construction of a massive infrastructural network which can direct these flows and provide a scientific analysis for their best use. A navigable trans-continental waterway stretching from Vancouver, B.C. to the Great Lakes-St. Lawrence Seaway, along with a canal branching off to the deep-water port at Churchill on Hudson Bay, and canals linking Georgian Bay to James Bay and Labrador, will open a vast resource potential in Canada for development and export. The required double tracking of various rail routes, together with the construction of 3540 kilometres of new rail connecting Prince George and Dawson Creek each to Fairbanks, Alaska, will complement plans of the present government of Russia for a Bering Strait Tunnel thereby laying the basis for a cooperative development of the Arctic: a condition necessary for a re-industrialization of the U.S., and the first industrialization of Alaska and northern Canada. Water supplied by NAWAPA XXI will generate 42 gigawatts of surplus power for the United States and Canada, and supplement the existing water flows of the four major river basins in the U.S. Southwest while irrigating 7.7 million hectares of farmland (nearly doubling the total irrigated acreage to 16.6 million hectares), and 1.2 million new hectares in the Northern High Plains states, as well as 2.9 million hectares of farmland in Canada and 2.2 million hectares in Mexico. This will provide the basis for an urgently needed increase in food production in those three countries. With a Glass-Steagall reorganization of the banking system which ties the remaining valid debts to the future economic activity of NAWAPA XXI through the credit emissions of a new Credit Fund or National Bank, Canada, the United States and Mexico will become leaders for a sovereign model of development, a living example which other peoples and nations might wish to follow. Building and implementing NAWAPA XXI, in the following way: *Enactment of a "Glass-Steagall" Act, to achieve the separation of fictitious debts from legitimate debts, and to enable a retroactive annulment of all government guarantees or reimbursements for private gambling debts; *Once "Glass-Steagall" has been implemented, the vast machine of economic activity associated with NAWAPA XXI will allow us to make good on all valid debts that it deems necessary to fund. This program will be the basis for the emission of necessary credit through a sovereign Federal Bank of Canada in collaboration with a newly established Canadian Credit Fund, that would share similar qualities found in previously successful "American System" models as the First and Second National Banks of the United States, the Greenback based national banking system of Lincoln, or the Reconstruction Finance Corporation of Roosevelt; *Establishment of a Credit Fund under authorization of the Parliament. The timetable and choice of funding valid debts and actualizing of new credit emissions will be tied to the investment cycles of NAWAPA XXI and related infrastructure and industrial needs, not the demands of Wall Street, Bay Street or international private banking interests. *The authorized NAWAPA XXI planning body will work with the relevant governments to determine how to meet pre-construction and construction phase needs, while simultaneously increasing the power of all the layers of the economy involved. [1] David MacDonald: "The Big Banks’ Big Secret"— Estimating government support by Canadian banks during the financial crisis. April 2012. [2] Isaac Buchanan – A Nation-Builder [4] Four phase critical path outline www.committeerepubliccanada.ca |
