Glass-Steagall is the indispensable first step to global economic recovery. It will immediately halt the onset of hyperinflation, remove government commitment from bailing out toxic debts, end too-big-to-fail banks, and force a separation of commercial banking functions from investment banking functions.
Legislation to restore Glass-Steagall, “The Return to Prudent Banking Act of 2011”, was introduced into the 112th Congress and garnered massive institutional support and 84 cosponsors in the House of Representatives.
On January 3rd, 2013 “The Return to Prudent Banking” Act was re-introduced by Rep. Marcy Kaptur (D-OH) in the 113th Congress as H.R. 129. And on May 16, 2013 a matching bill was introduced into the Senate by Sen. Tom Harkin (D-IA) as S. 985.
The major Italian online daily Il Nord ran today an exclusive interview with Liliana Gorini, chairwoman of Movisol and LaRouche spokeswoman in Italy, headlined "Glass-Steagall Now or This Will Be the End of the West?" The interviewer asks why the LaRouche movement is mobilizing internationally for Glass-Steagall, and "what other projects are you proposin
The China Daily, which generally represents the thinking of the Chinese government, attacks the upswing in U.S. Federal Reserve money creation, saying that an end to Quantitative Easing would not only help China, but "the rest of the world," too. However, Chinese economists "doubt the world's biggest economy will do so," it continue.
Bringing Fed money-printing under control is a major reason for the urgency of restoring Glass-Steagall, according to an unusual new article on the financial/investing website SeekingAlpha.
A former director of a regional Federal Reserve Bank with strong ties to the American corporate and national security community has warned...
At this point, we have in the Atlantic system, the trans-Atlantic system, we have very poor capabilities...
A political activist who campaigned for Obama in 2008 has announced her candidacy for Montana's lone seat in the U.S. House of Representatives, calling Obamacare "an albatross around the neck of the party." In her announcement statement yesterday, cited by MTN News, Melinda Gopher also said,
Directly taking up the challenge posed by Lyndon LaRouche’s recent statement and mass leaflet, Kenric Ward entitles his latest Examiner.com column “Too-big-to-fail banks have grown bigger; America worse than Weimar?”
Danish Friends of the Schiller Institute candidate Michelle Rasmussen interviewed Helga Zepp-LaRouche of Germany, founder and president of the Schiller Institute, on November 13, 2013.
Rep. Andrea Boland of Maine has submitted a new Glass-Steagall resolution to the National Conference of State Legislatures (NCSL). The resolution is now posted on the NCSL website as an upcoming item of business at the Dec. 4-6 Legislative Forum of the NCSL in Washington D.C., where it will come before the Communications, Financial Services and Interstate Commerce (CFI) Committee.
A Lega Nord faction in the Veneto Regional Council introduced a Glass-Steagall Motion on Nov. 14, composed by the text voted by the Lombardy Regional Council and a section dedicated to the regional economy. The group is the same as that which has organized a public conference in Treviso Nov. 23 for Movisol expert Massimo Lodi Rizzini.
An article yesterday on the website KM.ru by economist Valentin Katasonov, a professor at the Moscow State Institute of International Relations (MGIMO, the Foreign Ministry university) and head of the S.F. Sharapov Russian Economic Society, addressed the bankruptcy of the entire world financial system, exemplified by the U.S. Federal Reserve.
London's Ambrose Evans-Pritchard was gloating, yesterday, that the European Central Bank has signalled that it is prepared to unleash a wave of central bank hyperinflation on the model of the Federal Reserve's quantitative easing program. Pritchard cited a Nov.
How It Works
Since 1999, banks have been allowed to use commercial deposits and assets as fuel for securities trading on the derivatives market.
Because commercial and speculative assets are so heavily comingled, the government is forced to protect the assets of banks making risky bets through near perpetual bailouts and purchasing of toxic debt.
It was the derivatives bubble that blew up the system and bankrupted the US banks in the 2007-2008 crash.
1. Commercial Banking institutions have one year to divest themselves of all non-commercial banking units, with no cross management or ownership between commercial and non-commercial units.
2. Commercial Banks are barred from using more than 2% of its capital for the creation, sale, or distribution of securities (certain bank-qualified securities are exempted)
3. Prevents Commercial Banks from loaning their commercial deposits into such vehicals as would support the creation and circulation of securities.
4. No securities of low or potentially low value can be placed by a bank into its insured commercial bank units.
* Adds provision stating Glass-Steagall is the preeminant regulator of the banks, limiting banks from putting its depositors and shareholders at risk.
Glass-Steagall forces separation of commercial from investment banks, it ends Too Big To Fail, bars government bailouts, and will stop the onset of hyperinflation.