Obama is a Failure — The World Needs A New Financial Architecture Now!
Obama must be ousted, regardless of time left, if there is to be any functioning New Presidency in the United States during the period ahead. His Presidency has been a failure, one which is wreaking havoc, death, and chaos on the United States and the world through illegal wars, bailouts, drone attacks, destruction of healthcare, drug-related deaths, unemployment, and Obama’s personal psychotic pathology. As the nations of Eurasia, under the leadership of President Putin, construct a new strategic and economic system, Obama should be condemned for what he is, an abject failure and servant of the dying British Monarchy.
The critical flank to avoid nuclear world war and financial chaos due to Obama’s failed Presidency, is the development of a new financial architecture, and this is the leading discussion among world leaders during the many international summits over the months of September and October.
President Xi Jinping of China intends to put the critical issue of a new system on the agenda of the upcoming G-20 Summit in Hangzhou. The official China media, joined by top Russian analysts, have made clear that any such new and viable system must include the United States—this means that the U.S. must abandon its delusions of ruling a unipolar world, which no longer exists, and begin collaborating with major nations for a new and just economic system.
It is the ongoing collaboration between the leadership of Russia and China on a new economic system and urgent structural changes to the global financial system which is of the utmost importance. This was highlighted in China’s Xinhua Newswire on August 24th entitled, “Interview: Russia, China should cooperate within G20 to tackle challenges,” with Andrey Kortunov, Director General of the Russian International Affairs Council, an agency close to the Russian Foreign Ministry. He is quoted as saying, “The longer those reforms are postponed, the higher the risk of new crises and instability in the world economy.” And then later, “If today Beijing and Moscow offer their concept of stability to the international community, it is not just empty words, but proposals based on many successful experiences.”
There can be no real success of long term and global economic growth without a new financial architecture, and this requires the participation of the true United States, i.e. minus Obama. This was implicitly acknowledged by Kortunov, who noted that the U.S. can be “a complex, and sometimes unpredictable partner,” yet he says, “Both Russia and China should consistently seek common ground with Washington, and avoid crises, without making concessions on matters of principle.”
A second Xinhua commentary that same day, also regarding the G20, assailed the “over-reliance on monetary policy” and the focus on “markets” as opposed to “nations”—at the expense of policies aiming for real physical economic growth and based on technological innovation. “China will use the conference to spur dialogue among developed and developing countries around the potential to foster growth through reforms and innovation,” Xinhua announced.
According to the Wall Street Journal, it was at the request of China, that a recent report was issued by the Bank of International Settlements, warning that there are no mechanisms in place at this time which can prevent a blow-out of the $600 trillion-plus global financial derivatives bubble, should there be any major party default on a derivatives contract. Business Insider, in what could be described as a painful understatement, was forced to admit that the results of that survey “are slightly terrifying,” because if the clearing houses fail to handle a crisis, then derivatives become “unexploded nuclear bombs nestling deep in the financial system.” The Wall Street Journal further notes that China has placed the safety of central clearing houses “high on the agenda” of the upcoming G-20 summit.
There is now increasing and widespread belief among the trans-Atlantic elite that Europe and the U.S. are on the very edge of financial blowout, the magnitude of which is only equal to their denial of the global consequences and the collapse of western dominance. Bloomberg reported Tuesday, August 23, that Deutsche Bank, Barclays and Credit Suisse combined are sitting on $102.5 billion in “Level 3” assets, i.e assets which are illiquid, without market value and cannot be dumped in a crisis. The Economist headlined its Aug. 20-26 issue “Nightmare on Main Street,” warning that the blowout of the $26 trillion U.S. housing market, with a mountain of derivatives and other non-bank securitized gambling paper, is again ready to blow.
With the entire political and financial class increasingly discredited the only remaining option is the immediate reinstatement of Glass-Steagall full bank separation in the United States, and identical implementation throughout Europe. Glass-Steagall, followed by a jubilee debt write-off for the developing nations, as with Alfred Herrhausen’s policy in 1989, and the extension of long-term credit for industrial and scientific development, are just some of the first and indispensable steps towards the creation of a new global financial architecture, and the prerequisite for a new cultural paradigm for all of mankind.
The foundations for such a new global financial and economic architecture have been well-established, through the growing integration of Eurasia, through cooperation among the Eurasian Economic Union, the Shanghai Cooperation Organization, the BRICS, ASEAN, et al. China’s “One Belt, One Road” initiative, based on Lyndon and Helga LaRouche’s original mid-1990s concept of the Eurasian Landbridge, is the principle upon which this Eurasian and potentially global development is premised.
As the President of Mexico Jose Lopez-Portillo once said, “It is now time to listen to the wise words of Lyndon LaRouche!”