The American People Can Defeat Obama Again, — To Stop a Worse Than 2008 Crash

October 2, 2016
CIA Director John Brennan and Obama, loyal friends to the Saudi Kingdom, suffered an irreparable defeat last week with the passage of JASTA. (Official White House photo by Pete Souza)

What shall we do to bring Wells Fargo and Wall Street to justice, before they bring us again to mass unemployment and impoverishment?

The nearly unanimous Congressional override of President Obama's attempt to veto the Justice Against Sponsors of Terrorism Act (JASTA) was a great blow for justice. It was a severe defeat for a dangerous president, whose Administration is publicly threatening to target Russia with terrorism or even with nuclear weapons.

Use the experience of JASTA to remind yourself of what the people of the United States can do of their own will, as they did in rising up and achieving that override. Recall how a similar uprising stopped Obama in 2013, when following the disastrous Libya war he was in the act of throwing U.S. forces into Syria and multiplying the disaster.

Both times, the aimless and dissembling Congress was transformed by popular mobilization into a serious Constitutional body, when the moral survival and dignity of the nation.

We are facing a banking system headed for a new collapse which, if we do not change to the Glass-Steagall policy fast, will impoverish the peoples of Europe and the United States beyond anything the 2008 crash did. The big banks of Europe and America are all one London-centered, Wall Street-centered mess, committing immoral acts and crimes without end and threatening, again, to implode into chaos.

Deutsche Bank is the world "leader" in derivatives gambling and is now "leading" the trans-Atlantic banking system into another crash.

Wells Fargo was one of the very biggest, claimed to be "the cleanest," and has been exposed as one of the worst. Justice demands that Wells Fargo, and the other giants of Wall Street be broken up, their derivatives casino operations written off, their managements replaced. Justice, in the case of Wall Street, means Glass-Steagall justice.

And we must make the Congress do this fast.

Fundamentally at stake is economic progress, the prospect of returning to investment in technological advance and real productivity growth.

It goes back to the the proposed adoption of "Four Cardinal Laws" for long-term progress, spelled out by EIR Founding Editor Lyndon LaRouche in statements of May-June 2014.

The first is a restored Glass-Steagall Act, provoking immediate follow-on adoption in European nations as well. The second is the issuance of national credit for production through a Hamiltonian national bank or Rooseveltian Reconstruction Finance Corporation. Third, to guide investment of that credit, is definition of the most advanced infrastructure projects which will add the greatest degree of new productivity to our population, including a greatly revived program of Moon and deep space exploration in cooperation with China in particular. Fourth is — finally — to adopt a true crash program for fusion power and fusion technologies.

That approach will determine the actual capacity for progress of the economy, productive employment, productivity. And the work on it since May-June 2014 has made it possible, that Glass-Steagall is the number-one issue of economic justice and progress of the United States right now.

Join now, accelerate the mobilization



Wells Fargo Crimes Demand Glass-Steagall Justice

For Wall Street crimes like those exposed of Wells Fargo Bank, "Glass-Steagall justice" is thorough but enlightened — compared to the "Judge Roy Bean justice" millions of Americans would now like to see executed on that bank. Glass-Steagall justice is also much better for the U.S. economy and the nation's future productivity. Don't hang them; break them up and bankrupt all the casino operations, fire the management; give us back banks that can invest in industrial and scientific progress.

There is more yet to come out on this Wall Street champion, the "low-derivatives bank," the "Warren Buffett bank," claiming to be the only really solvent Wall Street giant. Unmanageable; criminal; dominated by its investment bank's "culture"; caught defrauding hundreds of thousands of depositors, caught stealing from soldiers in its military loan program; sharing some characteristics of Bernie Madoff's infamous operation, as a report just coming out will show.

At the hearings of the House Financial Services Committee Sept. 28, Janet Yellen was repeatedly asked about Glass-Steagall, by Committee members who oppose Glass-Steagall, but who acknowledged that "it's being discussed everywhere."

At the hearing on Sept. 29, Ranking Democrat Rep. Maxine Waters, who has been against Glass-Steagall, and had had repeated arguments and exchanges with Glass-Steagall activists since the Wells Fargo crimes were exposed, "broke out" on breaking up Wall Street banks. As American Banker covered her: "'I have come to the conclusion that Wells Fargo should be broken up. It is too big to manage,'" the California Democrat said. 'I am moving forward to break up Wells Fargo Bank.'...

"After the hearing, Waters told reporters that she plans on drafting legislation to break up Wells Fargo specifically, but other banks may be too big as well.

"We have to go through a process by which to design this legislation and go forward with it, but what you need to know is I am committed to breaking up Wells Fargo and if that leads us to a conclusion that all the big banks should be broken up.... They are too big to manage, said Waters, who added that [CEO John] Stumpf's inability to answer lawmakers questions during the hearing led her to the determination. 'He doesn't know what is going on in this bank,' Waters said."

Other Committee members appeared to want Stumpf flogged and thrown in prison for life, reserving the death penalty — but EIR representatives have fought for Glass-Steagall justice, now, using LaRouchePAC leads and EIR material as well as other useful ammunition like Cornell Prof. Robert Hockett's column in The Hill. Representative Waters had been made aware that even the Federal Reserve is now telling Congress to take hedge fund, private equity fund, and commodity operations away from banks.

Waters' announced route to breaking up Wells, or Wall Street, is next to impossible. She knows Wall Street and Obama say, "Whatever you do, never again Glass-Steagall." But Glass-Steagall is the justice the banksters' crimes demand. 

Deutsche Bank Not Alone in Leaking Liquidity Now

Deutsche Bank is leaking liquidity, but is only the currently most dangerous float chamber on the Titanic. Undercapitalization, even insolvency, is one thing: Now, serious liquidity problems are beginning to manifest themselves. Deutsche Bank has, comparatively a lot of liquidity, compared to much thinner RBS, Citibank, Goldman Sachs, for examples; so far only a small run on its $700 billion in deposits has begun. But when counterparties start withdrawing from derivatives deals and/or wholesale time deposits, it both reduces the bank's liquidity and increases the pressure on remaining liquidity, threatening a stampede.

Zero Hedge reported a JPMorgan Chase analytical note on European banks, issued Sept. 30: They suddenly drew $6.35 billion in U.S. dollars from the ECB (putting up collateral) based on a Federal Reserve currency swap with ECB. Previous end-of-quarter dollar draws by European banks had been in the $500 million-$1 billion range for years.

But Deutsche Wirtschaftsnachrichten, in an article on Sunday, notes that French banks were the neediest in this sudden need for dollar (i.e., derivatives) liquidity.

Morgan: "In our opinion it is not so much funding issues but rather derivatives exposures that are more likely to trouble markets going forward if Deutsche Bank concerns continue. This is especially true if these concerns propagate into a confidence crisis inducing more rapid unwinding of derivative contracts."

A cautious way of speaking of rope in the house of the about-to-be-hanged derivatives banks of the trans-Atlantic.

The Pam and Russ Martens "Wall Street on Parade" column for Oct. 1 looked at why certain banks' stocks immediately tanked on Friday along with those of Deutsche Bank, once the news of potential liquidity leaks/sudden withdrawals at Deutsche Bank got out. Not surprisingly, they were the banks with the largest exposure to over-the-counter (OTC, opaque, uncleared) derivatives as a proportion of their total asset books. This was market recognition that the derivatives blowout threatens the liquidity of many large banks and therefore their ability to stay open.

"Why Goldman Sachs, Morgan Stanley and Citigroup shed more equity value than Wall Street banks with much larger balance sheets, like JPMorgan Chase and Bank of America, was foretold on February 12, 2015 when the research agency created under the Dodd-Frank financial reform legislation issued a report with the above troubling graph. The report from the Office of Financial Research (OFR) was titled `Systemic Importance Indicators for 33 U.S. Bank Holding Companies: An Overview of Recent Data.' The data from the report indicates that Morgan Stanley, Goldman Sachs and Citigroup had the highest OTC derivatives values as a percent of their total exposures."

Deutsche Bank representatives are coming to the United States this week to negotiate down the bank's huge MBS-fraud fine; but they have also just been charged in Italy with derivatives crimes. German banks/markets are closed Monday for Reunification Day; watch London, French and Italian banks.