Thursday, February 21, 2013

Latest from LaRouche

GLASS-STEAGALL, OR DIE

A BAILOUT WAS NEVER POSSIBLE:
THE INTENT IS GENOCIDE

Lyndon H. LaRouche, Jr.
Lyndon LaRouche forecast the only possible future policy direction that can result from the current ‘bail-out’ and ‘quantitative easing’ policiies under, presently, Obama and Federal Reserve Chairman Ben Bernanke. The following is excerpted from the February 15 webcast of the regular series of Friday dialogues with LaRouche. Watch the full keynote: http://larouchepac.com/node/25513
“The key thing that faces us internationally, which is still the leading issue throughout the planet, is the question of Glass-Steagall. We have internationally, the relevant crumb-bums have all come out and threatened people over the issue of Glass-Steagall, denying it. Now, the answer is: If Glass-Steagall were to be prevented from being instituted, the result would be the greatest hatred ever conceived against the people responsible. Because what the cancellation or the prevention of Glass-Steagall would do, would cause a general breakdown crisis of the entire Atlantic system.
“And what they’re doing, the only way it will work, is cancel the entire bailout system—just wipe it off the plate, and come in with a new system, in which people who are privileged will be brought into that system, and they will be given relatively good incomes to live on, but unfortunately the greater majority of the population will have none. This is the greatest population reduction scheme so far in known history. And that’s what the policy of the people who oppose Glass-Steagall is—whether they themselves know it or not. But they will be held accountable for the effect of that policy. And that’s where we stand. And that’s the main issue.
“This has happened before, and what happens in a case like this: The amount of debt outstanding on account of this bailout system, a monetarist system—a financial easing, a monetary easing—it’s got to be canceled! So, there will be no such money available! There will be no such reserves. What will happen will be: an international cabal will create a new system of money, which will be much smaller, much more feasibly handled than the present one.
“What will happen to all the people who are excluded from the use of this more limited quantity of money? They will starve to death! And that’s the intention behind what this President of the United States presently is doing. That doesn’t mean he’s the author of it; it means what they’ve signaled.
“Because you cannot possibly pull off what they say they intend to do. There’s no way you can bail out this system— except by canceling it, and putting in an absolutely new one.
“This goes together with the Queen’s project for reducing the population of the planet from about 7 billion people to the order of 1 billion people. That’s exactly what they have planned. And anyone who is going along with this opposition to Glass-Steagall from here on, is going to be denounced internationally by me and by others as mass- murderers! They’ll be the most unpopular people crawling around, or slithering around the planet. And that’s exactly where we’re headed.”
— Lyndon LaRouche, 2/15/13
In 1996 Lyndon LaRouche developed a heuristic model called the “Triple Curve” which expresses a typical hyperinflationary collapse function. LaRouche’s Triple Curve demonstrates the inherent hyperinflationary character of a system in which speculative monetary profits are fueled by the self cannibalization of the physical economy. In 1996, this was merely a forecast, today this hyperinflationary collapse function is running amok in the entire transatlantic financial system.
In mid-February William Gross, founder of the world’s top bond trading firm, penned an article titled, “Credit Supernova,” equating the current global financial system to a supernova. “Each additional dollar of credit seems to create less and less heat. In the 1980s, it took four dollars of new credit to generate $1 of real GDP. Over the last decade, it has taken $10, and since 2006, $20 to produce the same result,” Gross wrote. This is “a monster that requires perpetually increasing amounts of fuel, a supernova star that expands and expands, yet, in the process begins to consume itself.”
But the situation is actually far worse than Gross is willing to admit--by an order of magnitude. Gross’s ratios refer only to U.S. government, corporate, and household debt, not “shadow debt,” as he calls it. But that “shadow debt,” including the infamous derivatives trade, has created total world financial aggregates that are growing {ten times more rapidly} than Gross’s debt figures. So, if it took 4 dollars of new debt to generate $1 of GDP in 1985, it took 10 dollars of global financial aggregates for the $1 in GDP. By 2012, the debt “gearing ratio” had grown five- fold, requiring $20 in debt to produce $1 in GDP. But the financial aggregates “gearing ratio” had grown fifty-fold, so it now requires $500 in financial aggregates for each $1 increase in GDP!
This is hyperinflation run amok.
This was all supposed to be good for the economy, for the banks and the American people right? Wrong, dead wrong.
On President Obama’s watch, Federal Reserve Chairman Ben Bernanke has issued four rounds of “Quantitative Easing’’ (QE), whose purported objective was to provide liquidity for bank lending, to help the economy recover. From 2008 through 2012, over 2.5 trillion dollars in QE has been issued by the Fed--with another $1 trillion already underway in 2013. But not only did bank lending not rise accordingly; it actually fell during this period by nearly $1 trillion. As a result, the share of deposits which are loaned by U.S. banks and thrifts hit a new low of 72% in 2012, down from 95% in 2007.
All of this was of course precisely the intent of the British imperial policy, as conduited through Obama and Bernanke: hyper-inflate the financial system with new assets designed to merely bail out old assets; and let the physical economy crumble, and those dependent on it, die.
So stop making excuses for this criminal insanity. Recognize that Lyndon LaRouche has been right all along, and that the choice now facing this nation and the world, is Glass-Steagall or die.
 
LIVE WEBCAST EVERY FRIDAY
WITH LYNDON LAROUCHE | 8PM EASTERN & 5PM PACIFIC
LAROUCHEPAC.COM
OR CALL: 1-800-929-7566
 
 
 

General Assembly of the State of Maryland Introduces Resolution in Support of H.R. 129

Text of Resolution

HOUSE JOINT RESOLUTION 3
By: Delegates Braveboy, Sophocleus, Frush, Aumann, Carter, Eckardt, Glenn, Howard, Ivey, McComas, Nathan–Pulliam, Pena–Melnyk, S. Robinson, Stukes, and V. Turner
Introduced and read first time: February 20, 2013
Assigned to: Rules and Executive Nominations
HOUSE JOINT RESOLUTION
A House Joint Resolution concerning Reinstatement of the Separation of Commercial and Investment Banking Functions
FOR the purpose of urging the United States Congress to support efforts to reinstate the separation of commercial and investment banking functions in effect under the Glass–Steagall Act and to support H. R. 129.
WHEREAS, An effective money and banking system is essential to the functioning of the economy; and
WHEREAS, Such a system must function in the public interest, without bias; and
WHEREAS, Since 1933, the Federal Banking Act of 1933, known as the Glass–Steagall Act, protected the public interest in matters dealing with the regulation of commercial and investment banking, in addition to insurance companies
and securities; and
WHEREAS, The Glass–Steagall Act was repealed in 1999, partially contributing to the greatest speculative bubble and worldwide recession since the Great Depression of 1933; and
WHEREAS, The worldwide recession has left millions of homes in foreclosure; and
WHEREAS, The worldwide recession has cost the loss of millions of jobs nationwide; and
WHEREAS, The worldwide recession has put severe financial strain on states, counties, and cities, exacerbating unemployment and loss of civil services; and
WHEREAS, The United States Senate and the House of Representatives have been making efforts to restore the protections of the Glass–Steagall Act; and
WHEREAS, Congresswoman Marcy Kaptur has introduced H. R. 129, known as the Return to Prudent Banking Act of 2013, that would revive the separation between commercial banking and the securities business in the manner provided in the Glass–Steagall Act; and
WHEREAS, Restoration of the protections of the Glass–Steagall Act has widespread national support from labor organizations, including the American Federation of Labor and Congress of Industrial Organizations (AFL–CIO), the American Federation of Teachers, and the International Association of Machinists; from prominent economic and business leaders, including Thomas Hoenig of the Federal Deposit Insurance Company, Sanford Weill, former Chief Executive Officer of Citigroup, and economist Luigi Zingales; and from newspapers, including the New York Times, the St. Louis Post Dispatch, the Los Angeles Times, and many others; now, therefore, be it
RESOLVED, BY THE GENERAL ASSEMBLY OF MARYLAND, That the members of the Maryland General Assembly urge the United States Congress to enact legislation that would reinstate the separation of commercial and investment banking functions that were in effect under the Glass–Steagall Act and that would prohibit commercial banks and bank holding companies from investing in stocks, underwriting securities, or investing in or acting as guarantors to derivative transactions, in order to prevent American taxpayers from being called upon to fund hundreds of billions of dollars to bail out financial institutions; and be it further
RESOLVED, That a copy of this Resolution be forwarded by the Department of Legislative Services to the President of the United States, 1600 Pennsylvania Avenue NW, Washington, D.C. 20500; the Vice President of the United States, 1600 Pennsylvania Avenue NW, Washington, D.C. 20500; the Speaker of the House, H–232, The Capitol, Washington, D.C. 20515; Representative Marcy Kaptur, House Office Building, Washington, D.C. 20515; and the Maryland Congressional Delegation: Senators Barbara A. Mikulski and Benjamin L. Cardin, Senate Office Building, Washington, D.C. 20510; and Representatives C. A. Dutch Ruppersberger III, John P. Sarbanes, Donna Edwards, Steny Hamilton Hoyer, Andrew P. Harris, John Delaney, Elijah E. Cummings, and Christopher Van Hollen, Jr., House Office Building, Washington, D.C. 20515.
 
 

General Assembly of the State of Pennsylvania Introduces Resolution in Support of H.R. 129

Text of Resolution

HOUSE RESOLUTION
Session of No. 73, 2013
INTRODUCED BY COHEN, CALTAGIRONE, CUTLER, YOUNGBLOOD, ROEBUCK, KORTZ, FABRIZIO, SWANGER, HARKINS AND MCCARTER,
FEBRUARY 6, 2013
REFERRED TO COMMITEE ON COMMERCE, FEBRUARY 6, 2013
A RESOLUTION
Urging the Congress of the United States to support efforts to reinstate the separation of commercial and investment banking functions in effect under the Glass-Steagall Act and supporting H.R. No. 129.
WHEREAS, An effective money and banking system is essential to the functioning of the economy; and
WHEREAS, Such a system must function in the public interest, without bias; and
WHEREAS, Since 1933, the Federal Banking Act of 1933, known as the Glass-Steagall Act, protected the public interest in matters dealing with the regulation of commercial and investment banking, in addition to insurance companies and securities; and
WHEREAS, The Glass-Steagall Act was repealed in 1999, partially contributing to the greatest speculative bubble and worldwide recession since the Great Depression of 1933; and
WHEREAS, The worldwide recession has left millions of homes in foreclosure; and
WHEREAS, The worldwide recession has cost the loss of millions of jobs nationwide; and
WHEREAS, The worldwide recession has put severe financial strains on states, counties and cities, exacerbating
unemployment and loss of civil services; and
WHEREAS, The United States Senate and House of Representatives have been making efforts to restore the
protections of the Glass-Steagall Act; and
WHEREAS, Congresswoman Marcy Kaptur has introduced H.Res. 129, known as the Return to Prudent Banking Act of 2013, and reviving the separation between commercial banking and the securities business in the manner provided in the Glass-Steagall Act; and
WHEREAS, The Glass-Stegall Act has widespread national support from such organizations as the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), the American Federation of Teachers and the International Association of Machinists, as well as from prominent economic and business leaders, including Thomas Hoenig of the FDIC, Sanford Weill, former CEO of Citigroup, economist Luigi Zingales, the New York Times, the St. Louis Post Dispatch, the Los Angeles Times and many others; therefore be it
RESOLVED, That the House of Representatives of the Commonwealth of Pennsylvania urge Congress to enact legislation that would reinstate the separation of commercial and investment banking functions that were in effect under the Glass-Steagall Act, prohibiting commercial banks and bank holding companies from investing in stocks, underwriting securities or investing in or acting as guarantors to derivative transactions, in order to prevent American taxpayers from being called upon to fund hundreds of billions of dollars to bail out financial institutions; and be it further
RESOLVED, That a copy of this resolution be sent to the President of the United States, to the presiding officers of each house of Congress, to each member of Congress from Pennsylvania and to Congresswoman Marcy Kaptur.
 

Support for HR129

February 14th, 2013 • 11:00 AM
Congressional Co-Sponsors to HR-129 (By Date of Signing)
  1. Marcy Kaptur (D-OH)
  2. Walter Jones (R-NC)
  3. Michael Michaud (D-ME)
  4. James McGovern (D-MA)
  5. James Moran (D-VA)
  6. Michael Capuano (D-MA)
  7. Eleanor Holmes Norton (D-DC)
  8. Peter Welch (D-VT)
  9. Lloyd Doggett (D-TX)
  10. David Cicilline (D-RI)
  11. Judy Chu (D-CA)
  12. Daniel Lipinski (D-IL)
  13. George Miller (D-CA)
  14. Collin Peterson (D-MN)
  15. Susan Davis (D-CA)
  16. Louise Slaughter(D-NY)
-
Resolutions for Congressional Action introduced Into State Legislatures
  • January 2013 – Rhode Island | Senate Resolution S10 [1] respectfully urging Congress to Enact "The Return to Prudent Banking Act"
  • January 2013 – Montana | House Joint Resolution 4 [2] introduced by B. Harris - "Urging the US Congress to enact the Return to Prudent banking act." On Jan. 28 the Committee on Business and Education voted 15 to 5 to table the resolution. Plans are being made to get the bill un-tabled.
  • January 2013 – Virginia | Senate Joint Resolution 273 [3], introduced January 9, 2013.
  • January 2013 – Kentucky | Kentucky Senate Concurrent Resolution SCR16 [4] introduced January 2013 and referred to the Banking and Insurance Committee.
  • February 2013 - Pennsylvania | Pennsylvania House Resolution HR73 [5] "urging the Congress of the United States to support efforts to reinstate the separation of commercial and investment banking functions in effect under the Glass-Steagall Act and supporting H.R. No. 129." The resolution was introduced by Rep. Mark Cohen, has 9 cosponsors and has been referred to the Commerce Committee. See Text Above.
  • February 2013 - Maryland | House Joint Resolution 3 [5A] was introduced for the "Reinstatement of the Separation of Commercial and Investment Banking Functions" with the bipartisan support of 15 Representatives. See Text Above.
-
Institutional Support
-
Notable Endorsements from Policy Makers & Notable Individuals
Sen. Maria Cantwell Reiterates Call for Glass-Steagall
" I'd certainly go back to Glass-Steagall and separate commercial and investment banking. And I would basically recapture resources from those banks and put it toward job training and education." Our Coverage [7A]
Thomas Hoenig, Federal Deposit Insurance Corp Board
“If we don’t make these changes, I think we’re destined to repeat the mistakes of the past,” Hoenig said. “When you mix commercial banking and high-risk broker-dealer activities, you increase the risk overall and as a result you invite new problems.” Bloomberg article [8]
Richard Fisher, President of the Dallas Federal Reserve
"Only the resulting downsized commercial banking operations — and not shadow banking affiliates or the parent company — would benefit from the safety net of federal deposit insurance and access to the Federal Reserve's discount window." Our Coverage [9]
Liam Halligan, Chief Economist of Prosperity Capital Management in London
"This Glass-Steagall battle isn't over yet, on either side of the Atlantic. Not by a long chalk. We can only hope it doesn't take another crash to force our governments to see sense...." Our Coverage [10]
Matthew Fink, Director Oppenheimer Mutual Funds, Director Retirement Income Industry Association
"The Glass-Steagall Act and other New Deal measures worked. For decades, the nation avoided lax regulation, excessive speculation, and financial crises."
American Banker article [11]

Congress is in Session; Call their offices
and meet your Congressmen
to Co-sponsor H.R. 129![1]   202-224-3121

 
 
 

 

Posted by PTPadmin at 1:55 PM

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)