Desperate Schemes for Euro Bailout: Futile, But Criminal
June 4, 2012 • 8:57AM

Virtually every financial newspaper and top speculator in Europe issued desperate calls on Sunday for a gigantic and direct global bailout of the Eurozone banks — whether called a "new banking union," a "new fiscal union," or just, in Gordon Brown's words, a "global bailout."

The cries came from the Economist, the London Financial Times, the FT Deutschland, Die Welt (which also warned its readers to "take cash" if traveling this summer, because monetary chaos is likely coming), from Reuters citing German officials, from George Soros speaking at a Trento, Italy, conference, etc. Die Welt's economics staff thought the grand bailout union had "four pillars"; the Financial Times' Gavyn Davies and FT Deutschland's Wolfgang Munschau preferred three. Soros warned sternly that European countries had exactly three months, no more, to have mass printing of "fiat money" by the European Central Bank underway; after that, Soros said, no amount of printing would be enough for the banks. Davies ran a table purporting to show that 1.5 trillion euros might be enough of a bailout for the financial systems of Spain and Italy — only — but concluded, "The ESM, as presently constituted, is not large enough to handle these funding requirements, and that remains the real heart of the problem."

Reuters' article from Berlin, on the other hand, reported that German government and Bundesbank sources say they expect agreement at the June 23 EU summit for a full European fiscal union — a Bruening fascist policy centrally enforced for all of Europe. This is then claimed to lead to the banking union and the issue of Mefo — oops, "Euro bonds."

Economist Lyndon LaRouche is leading the drive for the only policy which could actually tackle this otherwise terminal bank blowout — Glass-Steagall restoration in the United States and its rapid adoption across the European nations. LaRouche commented Sunday that no one should believe any of the hyperinflationary schemes will actually happen. The only thing serious people need understand about them is that they are "futile, but inherently criminal in nature, and they should be treated that way," LaRouche said.