The West Can No Longer Hide the Collapse of the Trans-Atlantic Financial System
Headlines in the leading press in Europe and the U.S. make it very clear that the Financial Lords of Wall Street and the City of London can no longer hide the impending, and inevitable, collapse of their financial system. Consider today's Die Welt: "Deutsche Bank threatens US government with systemic collapse." Or Bloomberg: "Existential Threat to World Economic Order Clouds IMF Talks." The Bloomberg article is reporting on the IMF's World Economic Outlook, the annual overview of the world economy which was released today ahead of the annual IMF meeting which takes place this weekend in Washington DC.
It would be best to refer to the current crisis as "One Minute After Midnight," rather than one minute before. "They can't cover it up," said Lyndon LaRouche today. "They are hopelessly bankrupt."
The problem with the pronouncements by the IMF on the crisis, however, is that their proposal of what to do about it is simply more of the same policies which caused the break down in the first place. To justify this, they have to lie about the cause. The transformation of the major western banks into unregulated gambling casinos by the take down of Glass Steagall in the 1990s is never mentioned, while the panicked implementation of massive money printing and negative interest rates to hold the Too-Big-To-Fail banks together over the past years, at the expense of the real economy, is prescribed as the solution rather than the cause.
Ironically, the emergence of populism across Europe and the US is described as the cause of the crisis, rather than the result.
"Fed by stagnant wages and diminishing job security, the populist uprising threatens to depress a world economy that International Monetary Fund Managing Director Christine Lagarde says is already 'weak and fragile,'" writes Bloomberg.
The IMF calls for three policy solutions: more loose money (negative interest rates), more government spending (quantitative easing), and structural reforms (a euphemism for anti-labor policies). Indeed, that is what is already happening across the trans-Atlantic. The Finanacial Times Tuesday acknowledged that
"In the final three months of the year, the UK, Japan and Europe are expected to mint a combined $506bn to purchase assets — the largest quarterly sum created since the early days of the US Federal Reserves QE programme in 2009."
Just as the reality of the collapse can not be hidden from the public, so also the only possible solution can and must be brought before the people and the legislators across the U.S. and Europe — putting the current bankrupt system out of its misery in precisely the method implemented by Franklin Roosevelt upon assuming the Presidency in 1933. The immediate restoration of Glass Steagall is the only means to save the commercial banking system of the Western nations. It will mean the demise of most of the Wall Street and London TBTF banks — but the only way to salvage the lives of the real people caught up in that massive bubble is to oversee it's collapse in an orderly, legal fashion, allowing emergency regulators to distinguish between the gamblers and those who were fooled into trusting the criminal institutions with their savings and pensions.
Then the real work begins — the joyful work of nation building. Through the restoration of the "American System" of national banking developed by Alexander Hamilton, and the issuence of credits through that system to create productive employment and an increase in real productivity through increased energy throughput, the nation can be restored. Restoring America's lost commitment to the frontiers of science, through fusion power development and a revival of our space program, will provide the necessary future for our children, freed from Obama's drug infested counter-culture, and re-introduced to classical music and classical culture, both our own and that of our natural allies in China, Russia, India and the Middle East, as well as the newly prosperous nations of Africa and Ibero America.
It must be addressed, however, that the failure to achieve these developments now, before the insane election process is completed in the U.S., will lead us rapidly to global war. Never has the world been closer to nuclear war, as Obama and his Defense Secretary "Nuclear Ash" Carter are moving the world's most advanced military weaponry up to the Russian and Chinese borders, while launching a $1 trillion program to rebuild the entire US nuclear arsenal. Carter insists that the US must maintain a "first strike" nuclear capacity to meet the threat of an imagined conventional invasion of NATO by Russia. In fact, Obama and his war party are now making preparations for war on Russian and Syrian forces in Syria, which could provoke world war immediately.
This madness has nothing to do with the non-existing threat of military aggression from Russia or China, but the very real "threat" to the Anglo-American financial empire being created by Russia, China, India and their BRICS partners. With the support from nearly every developing nation on Earth, these nations are creating a new paradigm for the world, centered on China's New Silk Road development policies and cooperation on crushing drugs and terrorism world-wide.
The exposure of Obama's open support for terrorists and their sponsors in his (overridden) veto of the JASTA bill opens the path to his removal from office for "high crimes and misdemeanors."
The US and Europe can and must end the madness, and join the new paradigm.