by Jeffrey Steinberg
It is almost impossible to overstate the strategic significance of the fact that an important group within the top echelons of the British Establishment have come to the conclusion that Glass-Steagall is the only survival option open to them. The July 3 Financial Times editorial endorsement of Glass-Steagall has been followed, over the past 48 hours, by a series of further endorsements by leading figures, from Peter Hambro, of the old British merchant banking family; to Lord Myners, former Financial Services Secretary in the Gordon Brown government and a Rothschild-sponsored banker; to Terry Smith, a leading City banker who had called for a return to Glass-Steagall at the time of the September 2008 Lehman Brothers and AIG blowout. In Italy, the newspaper of record, Corriere della Sera, came out Friday with a big push for Glass-Steagall by leading financial correspondent Massimo Mucchetti, who is known to have, in the past, been close to Romano Prodi and the De Benedetti interests.
These actions have been taken with the full knowledge that the fight for Glass-Steagall has been led—in the United States and in Europe—by Lyndon LaRouche. As he noted in the brief statement that appeared earlier, LaRouche is the only person qualified to engineer the return to Glass-Steagall and a system of fixed-exchange-rate sovereign currencies in the trans-Atlantic region. In discussions with colleagues today, LaRouche emphasized that, if leading figures in the trans-Atlantic governments do exactly what LaRouche has prescribed, we can go into an immediate economic recovery. "London has delivered a shot across the bow, and we are the world leaders on Glass-Steagall," LaRouche declared on Friday. "A group of responsible people in Britain has decided that the fate of everything that is important to them requires an immediate Glass-Steagall reform."
LaRouche added a crucial point: "This also means that they cannot any longer tolerate Obama in office. By moving as they have for Glass-Steagall, they are also committing to sink the bastard. They can no longer tolerate Obama's continuation in office in the United States." That is the crucial factor in our moving to remove Obama from the Presidency and the nomination before the Democratic nominating convention begins on Sept. 3.
It is crucial to understand that a grouping in London has concluded that the system has already blown, and they must act preemptively to save their interests. This opens the door for Obama's removal in time. The crimes of Obama are evident, from Fast and Furious—which was nothing else than a coverup of the flood of drug money that went to Obama's illegal election in 2008, courtesy of George Soros and that gang—to the most damaging leaks of national security secrets in the nation's history. But the real issue behind Obama's removal is that he and Geithner and Bernanke are the biggest impediments to the immediate implementation of Glass-Steagall. As LaRouche said on Friday, "Glass-Steagall is the operation that brings down the Obama Presidency."
The LIBOR rigging scandal now also opens another flank. Today, the British Serious Fraud Office (SFO) announced a criminal investigation into the fixing of the rates that determine virtually all adjustable-rate mortgage and credit card rates worldwide. The investigation will be coordinated with law enforcement agencies in the United States, Japan, and throughout continental Europe. This is potentially the Pecora Commission, but on a global scale, that was so ferociously suppressed in 2008. The LIBOR scandal is so big, and involves so many of the worst of the trans-Atlantic banks, that it cannot be suppressed. Bankers are going to be frog-marched off to jail over this.
There is one other critical dimension of this picture that cannot be overlooked or underestimated, and that is the role of Russia and President Putin in foreclosing the option of a limited war. The fact that Putin and the Russian generals have repeatedly warned that any move for regime change in Syria or Iran could lead to a thermonuclear war of extinction, has meant that the British bluff has been called. The combination of the Russian resolve, and the war-avoidance actions by U.S. military leaders, from the Chairman of the Joint Chiefs of Staff, General Martin Dempsey, on down, has thrown off the timetable for war, that had been set last year. The option of wars in Syria and Iran, following closely on the heels of the overthrow and assassination of Qaddafi in Libya, has been stopped so far. As the result, the rate of collapse of the trans-Atlantic financial system has raced ahead of the war preparations, to the point that any kind of strategic confrontation is now much more difficult, if not impossible.