The Solution Begins Right Here in the U.S.

June 19, 2015

Just as Lyndon LaRouche engaged in his fifth historic Fireside Chat with the American people and his extended organization Thursday night, preparing the way for a new Presidency, his statement of yesterday on the Greek crisis was producing a profound impression on some key leaders worldwide. No one but LaRouche has dared to say that a new Greek drachma need not fall in value, but could actually rise, because it is the euro system that has failed, not Greece.

The wisdom of the creditors to Greece is not particularly great.
— Helmut Schmidt • June 18, 2015—'Delete the Debt'

At the same time, the struggle for Greece moved towards a point of decision. Angela Merkel prearranged another failure of negotiations by harshly denouncing the Greeks before the German parliament Wednesday. Then, when Eurogroup finance ministers again refused to give Greece a hearing, and broke up their own meeting, an emergency summit of Eurogroup heads of government was called for Monday, as a last chance for Greece to submit.

The European Central Bank is arranging a run on Greek banks to try to force the Tsipras government to its knees. ECB official Benoit Coeure said, and then denied he said, that Greek banks may be unable to open Monday.

LaRouche said:

"This is the way you collapse a banking system. The Greeks may have only a few days to act."

"Elements in the trans-Atlantic region, including the United States, are bankrupt. And therefore, the whole Greek thing, depends on bankrupting the euro. And the only way to do that, is just to close the damn thing down, and build a new economic structure."

Greek Prime Minister Tsipras arrived in St. Petersburg yesterday for the St. Petersburg International Economic Forum and a meeting with Putin yesterday.

LaRouche said:

"They will go toward Asia. The Greek system will be semi-European, oriented to Asia."

Members of the Greek delegation reiterated Greece's interest in joining the New Development Bank of the BRICS, and also expressed interest in attending the forthcoming July 9-10 BRICS summit in Ufa, Russia.

"Attendance at Ufa will be very useful." LaRouche said.

"The main thing comes in the United States. It means, `Obama out!' On that basis, by doing that properly, the end of the crisis is at hand. Wall Street is bankrupt; just write it off as a bankrupt thing. It is simply a fraudulent investment."

"The problem we've got is that the Obama government is still lurking there. Get rid of that government, and get a decent government. Or get something being done which will lead to a decent government.

"That would greatly improve the world situation."

Obama brought the moment of his forthcoming impeachment much closer yesterday, by forcing Fast Track through the House of Representatives in alliance with the Republicans against the Democrats, working with John Boehner and Mitch McConnell rather than his own party. He did it in conspiracy with Republicans, only through Republican votes, and the Democrats are completely furious with him.

It just takes one Congressman, or either party, to initiate Obama's impeachment. This is the appropriate occasion for that.



Schmidt: Delete the Debt

Former German Chancellor Helmut Schmidt called for the deletion of a large part of the unpayable Greek debt, in a 12-minute interview with the Greek semi official press agency, ANA-MPA. This comes only a few days after the Paris Schiller Institute Conference where Lyndon LaRouche pointed to Helmut Schmidt, along with former Chancellor Gerhard Schroeder and Foreign Minister Frank-Walter Steinmeir, as playing a key role in preventing the danger of war, of which the Greek crisis could serve as a trigger.

While saying an unorganized Grexit could lead to disaster, Schmidt said that Greece should never have joined the Eurozone and if it still had the Drachma the problem could have been solved in an easier way. But on the debt he was clear. When asked about the cancellation of Greek debt as modeled after the German London Debt Agreement in 1958, Schmidt replied: "I want to tell you that I think that it is completely excluded that Greece will be able to repay its debt. The majority of it should be deleted."

On the issue of German war reparations to Greece he said that since Greece did not participate with the U.S., Britain, France, the Soviet Union, who with Germany agreed, by treaty "2 + 4" not to receive war reparations with the sole exception of the payment of the Soviet Union, Schmidt said that the views of the Greek Finance Minister, on the issue can not be considered totally erroneous in all cases. "I do not believe that these claims for compensation have been closed legally and politically."

While he said it was a mistake for Greece to have joined the eurozone in 1991 in Maastricht, he said that it can be rectified retrospectively in a coordinated manner, but if it happens in a disordered fashion, it will have devastating effects, adding, "The wisdom of the creditors of Greece is not particularly great."

He then made his own proposal saying "we need a European investment program for the benefit of Greece, which can not be financed only from Germany but also from Germany, and also an agreement to write off a large part of the accumulated debt of Greece."

He also mad clear that it is "nonsense" to say that the German people have been "bled" by Greece, which is what Germans read every day in the lying media... More broadly when asked how he sees the future of Europe in view of the Greek crisis, he said you have to look at it more broadly saying it is not only in regards to Greece that Europe has acted inconsistently but also in relations to Russia and the conflict in the Ukraine. He also mention ISIS in Iraq and Syria. "There are many problems that are pushing Europe and which are not offered at this time solutions."

Eurozone Produces Only Threats

Yesterday's meeting of 19 European Finance Ministers in Luxembourg to discuss the Greek crisis, yielded no results except more vicious threats and demands that Greece submit completely to their murderous dictates.

Donald Tusk, president of the European Council, immediately announced after the meeting that he would call all Eurozone presidents and prime ministers to an emergency summit in Brussels on Monday, June 22. "It is time to urgently discuss the situation of Greece at the highest political level," he said, the Financial Times reported yesterday afternoon.

Dutch Finance Minister Jeroen Dijsselbloem, who chaired the ministerial meeting, harumphed that no agreement is yet in sight, accusing Greek Finance Minister Varoufakis of having presented "too few measures that were credible and serious," Associated Press reported. Time is running out, and it now time for the Greeks to submit "new" proposals over the next few days, he howled. Prior to the meeting, Dijsslbloem repeated that debt restructuring "is not in the cards." The FT reports that Dijsselbloem admitted for the first time, that in order for Greece to unlock the 7.2 billion euros it is seeking, it would have to accept a third extension of the bailout program.

For her part, IMF Managing Director Christine Lagarde demanded more killing. She warned that Greece's proposals "cannot be smoke and mirrors," but must be "credible." According to the website, she stated that Greece will get no extra time to make the 1.6-billion-euro debt payment it owes the Fund at the end of this month.

"There will be no grace period," she hissed. "I have a term of June 30. If it's not paid by July 1, it's not paid. No delay of one month or two, as I heard; It's due June 30." 

Blackout on Greek Debt Report

The Greek Debt Commission report declaring all the bailout debt "odious" and "unpayable," has been virtually blacked out of the major English-language international media. Even Greece's English-language dailies have blacked it out. Kathimerini, the leading neoliberal daily, included one line on it buried in an article on another subject. But, the Debt Commission report is all over the blogosphere on countless websites, and is covered widely in Spanish-language media, both in Spain and Ibero-America. Several websites, such as the Center for Research on Globalization, among others, published the Executive Summary or short summaries of each chapter.

International media are filled with reports on the fact that Bank of Greece Governor Yannis Stournaras inserted in the bank's official report, the warning that if Greece defaults it would be thrown out of the Eurozone and the European Union. His report was rejected by the Parliament as soon as it was submitted, by Speaker Zoe Konstantopoulou, as being "unacceptable" and an "undemocratic" attempt to "create a fait accompli and prevent a challenge for debt relief."

Stournaras was appointed by the previous government, as a reward for kissing the asses of the EU Commission/ECB/IMF Troika every day as finance minister in 2012-2014. He is considered an idiot, and a lackey of the European oligarchy, and is thoroughly discredited. Even Ambrose Evans-Pritchard in his Daily Telegraph column yesterday calls Stournaras's assertions "fatuous" and says that the EU would not dare throw Greece out. Evans-Pritchard said that Stournaras's action, when he is supposed to be a "neutral" figure "tells us much about the institutional rot."

Wednesday night thousands of Greek demonstrators gathered in Syntagma Square carrying banners accusing EU leaders of being "loan sharks" and "blackmailers," to send a message to the Athens government that their mandate is to take a tough stand against the creditors.

Further Greek Interest in BRICS

On Wednesday, on the eve of Greek Prime Minister Alexis Tsipras's attendance at the June 18-20 St. Petersburg International Economic Forum, Panagiotis Roumeliotis, the BRICS advisor to the Greek government, told Sputnik that Greece was both interested in joining the BRICS New Development Bank, and would also be interested in attending the BRICS Summit in Ufa, Russia, on July 9-10.

"Of course we are interested in participating in the Ufa Summit; it would be a great occasion to continue our discussion with the Russian authorities on the creation of the New Development Bank and the functioning of the Bank, and how Greece could be an active member," Roumeliotis said.

On the anti-Russia sanctions, Roumeliotis, who is now in St. Petersburg, also confirmed to Sputnik that "Our government has a clear position on that: It is against sanctions. ... We should try to work on the European level to overcome the difficulties and the political and economic problems in order to establish and enhance relations with Russia."

Deputy Defense Minister, and co-chairman of the Russian-Greek Interstate Commission Costas Isychos could hardly be more upbeat in his remarks to Sputnik yesterday:

"The Greek party which will be visiting St. Petersburg, led by Prime Minister Alexis Tsipras, considers this to be an excellent opportunity — I would even say, a historical opportunity. It opens a window for Greece in a region, in an area where we do have traditional relationships — historical, religious, economic, and so on."

"I think that the BRICS Development Bank seems to be an alternative... [the IMF is] "a monopoly that has led to tragedies and catastrophes of thousands of people over the last decades...Of course, we don't have anything in hand yet, it's very early to say; it's in the stage of formation and we don't have any practical ways to analyze the BRICS development bank, but in theory there are opportunities for us to gain."

Tsipras is expected to meet with Russian President Vladimir Putin on June 19 on the sidelines of the conference. Tsipras's Energy Minister Panagiotis Lafazanis is included in the delegation, since the Turkish-Greek Stream gas pipeline is expected to be on top of the agenda of talks.

As relations between Russia and Greece are developing, the semi-official wire service Athens-Macedonian News Agency (ANA-MPA) will sign a cooperation agreement with the Rossiya Segodnya — the parent company of Russia Today. ANA-MPA writes that the agreement aims at "upgrading the relations between Russia and Greece." The two agencies will jointly implement programs covering national and international news, in addition to specific areas of cooperation between Greece and Russia in energy, commerce, investments, tourism, and culture. The contract was signed by ANA-MPA president and general director Mihalis Psilos and the general director of Rossiya Segodnya, Dmitry Kiselev.