Glass-Steagall Is Now the Only Choice
August 6, 2011 • 9:08AM
Just as Lyndon LaRouche forecasted early this year, the entire trans-Atlantic financial system is now in a terminal meltdown, and the only way out of a total collapse and social chaos and mass death is the immediate enactment of Glass-Steagall and the removal of President Obama from office.
With Thursday's 513-point crash of the Dow Jones, Wall Street has posted at least $2.25 trillion in losses of nominal assets in the past nine days alone. The big six Wall Street banks are holding at least $1-1.5 trillion in Spanish and Italian debt, alone, so there is no longer any separation of the crises in the United States and Western Europe. In the past 24 hours, Italy has been forced to pay yields of 6.2% for new government debt—for the first time, higher than Spanish debt yields.
The crisis has also spread to France in the past 24 hours, with fears that the French government will have to pay significantly higher rates for new debt. The second-, third-, and fourth-largest economies of Europe, thus, are on the chopping block, and the European bankers and the European Central Bank are desperately looking to Federal Reserve Chairman Ben Bernanke and Treasury Secretary Timothy Geithner to bail them out.
Geithner and Bernanke are totally frantic. They do not have the political support to go for Qualitative Easing 3, and they know it.
Next week's Federal Open Market Committee meeting promises to be a showdown moment. President Obama, according to sources close to the White House, is going through yet another psychological meltdown. He has been told by his top campaign advisors that the campaign funds are rapidly drying up, and that major "bundlers" from the 2008 campaign have simply decided to stay home. The coup d'état carried out on Monday and Tuesday, with the Super-Congress deal, is still far from consolidated.
A senior U.S. intelligence official acknowledged that the impeachable violations of the Constitution are piling up around Obama. The Libyan war goes on unchecked, with American AWACS planes flying daily missions over Libya, providing bombing targets. The Super-Congress deal was a flagrant violation of the Constitution. The American people are facing the most traumatic economic and social crisis of their lives—the worst, by far, since the Great Depression. They blame Obama, and they blame the bankrupt Congressional leadership of both the Democratic and Republican parties. A fundamental government shakeup, based on this popular reaction, is in the air. The mass strike, which first bubbled to the surface in August 2009, is vastly more advanced at this moment.
A second very senior U.S. intelligence source, speaking for a significant institutional faction, candidly acknowledged that the passage of a reinstatement of Glass-Steagall, at this moment, would deconstruct the entire oligarchical financial system.
Glass-Steagall is, at this moment, the key to the survival of the United States. And the survival of the United States, under Glass-Steagall, is the only way that Europe can survive. We are at a moment in history, when the survival of mankind and the continuation of the oligarchical system are no longer compatible.