Glass-Steagall and the American System
March 23, 2017 (EIRNS)—On March 20, North Carolina became the 12th state to have a memorial for the reinstatement of Glass-Steagall submitted to its state legislature. House Joint Resolution 391 calls for Congress to "enact, without delay, an
The text then specifies four actions needed, beginning with Glass-Steagall.
The other states which are considering resolutions for such a program, or just for reinstating Glass-Steagall, are: Delaware, Illinois, Iowa, Maryland, Minnesota, New Mexico, Rhode Island, South Carolina, Virginia, and Washington State.
Meanwhile, the Congressional bill for restoring Glass-Steagall, Rep. Marcy Kaptur"s H.R. 790, currently has 40 sponsors.
Why is the push for this program not more intense? Clearly, neither the President, who recently and usefully has discussed the need for "American System" economics, nor the Congress, understands the basics of how to restart the real economy of the United States. For not only must the banking system be cleaned up by removing the trillions of gambling debts now on the books, as a precondition for rebuilding industry, but a new institution of credit must be put into place, to permit the necessary economic and productivity growth.
To this end, readers will find useful an interview given by noted author Nomi Prins to EIR's Paul Gallagher, substantial portions of which will be printed in an upcoming edition of EIR, and whose full interview is aired at www.larouchepac.com. Prins explains, among other things, how breaking up the banks through imposing separation between commercial and investment banking (the core of Glass-Steagall) will make it profitable, once again, for banks to invest in the real economy, rather than engage in government-subsidized speculation. It"s not over-regulation that has kept banks from investing to rebuild infrastructure and manufacturing (as most Trump Administration spokesmen insist), but the free ride given by the Fed and others to the major banks to make profits through speculation.
A study of the real basis for the American System‚Äîfrom Alexander Hamilton, to Abraham Lincoln, William McKinley, and FDR's a most urgent item on the agenda.