LaRouche: Bankrupt Wall Street and Join the BRICS in Creating a New Global Credit System

February 1, 2015

Over the weekend, one outlet for British Imperial policy after another issued hysterical warnings about the global strategic implications of the Greek crisis. The CFR’s Ian Bremmer warned that Greece could well leave the Eurozone and NATO, and instead join the SCO, Russia and China in alternate economic and strategic arrangements – de facto joining the BRICS, although Bremmer doesn’t dare call it that. Daily Telegraph columnist Ambrose Evans-Pritchard warned that the EU chicken game with Greece could totally backfire, leading to "unknown tremors [which] might hit the global payments system. They are playing with fire." And even the usually sensible Liam Halligan exploded that the new Syriza government in Greece "could take direct control of Greek lenders and write off billions of euros in household loans, destroying bank balance sheets in a frenzy of populist contractual vandalism."

"But that is sensible; it is exactly what they should do," Lyndon LaRouche commented today. They should just get rid of these phony debts which don’t exist anyway, LaRouche added. Not just Greece, but all of Europe and the entire trans-Atlantic sector has had debt shoved down their throats which is phony. The entire system is dead, LaRouche stated, in the U.S. as elsewhere, and it simply has to be replaced. Wall Street is dead, so write them off. The entire speculative system centered in the British Empire is dead, and trying to postpone that death won’t work anymore. Efforts to do that, will only lead to war, LaRouche added.

So we have to write off the speculative debt, which has no substance whatsoever, and is only speculation on a future which has already died, LaRouche stated. In its place, we have to create a new credit system under which we can operate, once the old system has been written off. That new system will give fresh authority for the generation of productive credit, as such principles were established by Alexander Hamilton, credit which will be used to generate productive employment.

No other conversation on these matters is worth it, LaRouche concluded. Wall Street, the British banks, and the European system are all dead. So get rid of them. It’s that simple.

In further discussions with associates this afternoon, LaRouche stressed:

"The fact of the matter is, we have to eliminate that danger. And that danger is now called Obama. Obama is the stooge and the tripwire which could set this whole thing in motion. So Obama’s being kicked out of office, kicked out of functioning, and so forth in various ways, and senses and means, is very important. Obama must be thrown out of office, which would mean that [victoria] Nuland would be going out of office, too, which would be a great relief. The factors of the danger of immediate thermonuclear war, inside the United States, for example, are factors which must be treated as a tripwire for thermonuclear war. Obama is a tripwire for thermonuclear war. Obama must be removed.”



Paul Gallagher on Greece and Turning Wall Street's Unpayable Debts into Credit for the Real Economy

EIR's Paul Gallagher was the guest on LPAC's weekly Activist Call with John Ascher, elaborating on how the newly elected government of Greece is now in a position to reorganize the deadly and unpayable debts of Wall Street and the City of London into credit for the real economy. Gallagher was joined by Dean Andromidas who has traveled to Greece for the last three years, representing the LaRouche movement's reconstruction proposal for Greece and the entire Mediterranean region, beginning with a Glass-Stegall reorganization of the transatlantic financial sector and tying existing debts to long-term infrastructure projects that can guarantee a return on investments and raise the overall economic potential of the region.

Hear Dean Andromidas' interview HERE.

For further background, see Gallagher and Andromidas' "A GREEK PROPOSAL: Convene a European Debt Conference for 2015", published earlier this month in EIR magazine.

For more information on how to participate in the weekly LaRouchePAC Activist Call, visit our Action Center here.

Brits Geek on Greece: "The Dam Has Burst"

British policy outlets are displaying unalloyed fear over what Greece portends for the future of the Eurozone, and their entire trans-Atlantic financial system.

"The dam has burst," wailed Jeremy Warner, the assistant editor of the Daily Telegraph.

"There's not much doubt where the biggest threat to global economic stability comes from right now—it's the pesky euro."

Fellow Telegraph columnist Ambrose Evans-Pritchard, after cataloging the recent raft of threats against Greece coming from hysterical European bankers and politicians, stressed that the Tsipras government in Greece has given no indication of buckling under the pressure. Evans-Pritchard concluded that "this spectacular game of chicken" is going to continue "until one side or the other blinks." But, he warned, things may not go smoothly, quoting Professor Ashoka Mody, a former IMF bail-out chief in Europe, saying that the ECB's actions are

"extremely irresponsible... I have never heard of such outlandish threats before. The EU authorities have no idea what the consequences of Grexit might be, or what unknown tremors might hit the global payments system. They are playing with fire... What they ignore at their peril is the huge political contagion. It would be slower- moving than a financial crisis but the effects on Europe would be devastating."

An even more pointed warning was issued on Jan. 28 by Ian Bremmer, head of the Council on Foreign Relations' Eurasia Group, who argued that Greece could well bolt from the trans-Atlantic sector altogether (both the eurozone and NATO), and align with Russia and China and the BRICS process—although Bremmer doesn't dare mention the BRICS by name. The way he put it was:

"The Russians could push the issue and tell the Greeks, 'Hey, we'll bail you out, but you have to leave NATO and join the Shanghai Cooperation Organization. And you're giving us access to the base' [a warm water port]. That would absolutely be attractive for Syriza. And frankly, I might even see the Chinese joining in, since they've already put a lot of cash into the Port of Piraeus, for example."

Halligan Links Financial Crisis, War Provocations Against Russia

Daily Telegraph columnist Liam Halligan, a firm proponent of Glass-Steagall who is normally measured and even understated in his commentary, penned an unusually agitated column on Jan. 31 over the Greek crisis.

"Greece and its official creditors are now issuing full- blooded threats and counter-threats regardless of the impact on financial markets... There is concern the Syriza-led coalition could take direct control of Greek lenders and write off billions of euros in household loans, destroying bank balance sheets in a frenzy of populist contractual vandalism."

Lyndon LaRouche commented in response:

"But that is sensible; it is exactly what they should do."

Halligan went on to warn that

"the current [greek] bail-out package expires at the end of February. After that, Greek banks won't be able to borrow from the ECB—which would result in a bank run, a shut-down of depositors and almost certainly, widespread civic unrest. A new deal simply must be done by month-end."

Halligan added that the new Tsipras government in Greece said it had not been consulted on the latest EU statement on Russian sanctions, and that it was therefore not "unanimous," as reported.

"This amounts to a diplomatic hand grenade, lobbed directly at Brussels. EU sanctions against Russia will expire in March unless renewed by the unanimous decision of member states, giving Greece an effective veto."

Halligan then concluded: "If these Greek debt negotiations go wrong, and positions become so entrenched and tempers unchecked that the madness of an outright default prevails, or even looks very likely, financial markets across the Eurozone and the entire world could endure a Lehman- style systemic lurch."