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This article appears in the May 14, 2010 issue of Executive Intelligence Review.

LaRouche Demands Patriots Act
To Pass Glass-Steagall

[PDF version of this article]

FLASH: The British swine have once again imposed a 1923-style hyperinflationary collapse on modern Germany, with the trillion-dollar bail-out scheme imposed on the Eurozone this past weekend. Only the immediate enactment of a Glass-Steagall law could prevent the United States itself from falling into the same fate now destined for continental European victims such as, above all other targets for total destruction, the Federal Republic of Germany.

Chancellor Frau Merkel's Germany was given virtually no option in this matter. Indeed, only the immediate enactment of the return to President Franklin Roosevelt's Glass-Steagall law in the U.S.A. could create the shift in global conditions which would prevent the British hyperinflationary policy for continental Europe from plunging the entirety of this planet into the darkest dark age in known history now.

                                                                      —Lyndon LaRouche

by Nancy Spannaus

May 10—As the British imperial financial establishment scrambled desperately to pull together a self-doomed "rescue" for their imploding system, Lyndon LaRouche took the stage for an international webcast from Northern Virginia on May 8, to demand that U.S. patriots to protect the United States, and ultimately the world, by passing the Glass-Steagall amendment which has been submitted to the U.S. Senate banking reform bill (see Documentation). "The bill must be fully supported, without quibble," LaRouche said. "If you don't support this, it means you don't care about civilization."

The Glass-Steagall amendment, introduced on May 6 by a group of Senators led by John McCain (R-Ariz.) and Maria Cantwell (D-Wash.), is the act of a growing group of patriotic Members of Congress, LaRouche asserted. While they introduced their Franklin Roosevelt-style legislation to protect commericial banking from speculative trading back in December of 2009, they have now sprung into action under pressure of the crisis now erupting in the Eurozone. They know that the only way the U.S. system can save itself from being sucked into the collapse spiral which British monetarist policies have caused in Europe, is to implement Glass-Steagall at home, and prepare to institute a recovery process that will bring in the rest of the world as well.

LaRouche's presentation was punctuated by up-to-the-minute reports from the battle zone in Europe, where the media was reporting the pressure being put on Germany, in particular, but also all other Eurozone nations, to pour untold billions of funds into trying to save the bankrupt system. LaRouche's response, at every turn, was to re-emphasize his crucial point:

There is only one thing to do with this thing. Obviously, the operation in Germany is British-run....

Now, what we do, is we, in the United States, mobilize to the extreme, for this reform which we're pushing: Back to Glass-Steagall. The Glass-Steagall reform will crash the British system. When we have crashed the British system, by re-establishing Glass-Steagall, by doing that, we're going to create a situation where the British will no longer be able to impose these things.

The next day, the British, with Obama's aid, succeeded into putting together promises, from continental EU member-states, of a more than $1 trillion bailout, to try to save their system. That action—Weimar hyperinflation on a world scale—only increases the urgency for U.S. patriots to act.

The U.S. Battleground

The Senators leading the Glass-Steagall offensive at present, represent a growing bipartisan grouping, which is acting as patriots, as well as in response to the mass strike ferment within the U.S. population. The intensity of that ferment, which—despite all news media tripe to the contrary—is primarily focussed against the murderous and criminal economic policies of the Bush and Obama administrations, is dramatically increasing.

McCain and Cantwell are joined by four Democratic Senators—Barbara Boxer (Calif.), Tom Harkin (Iowa), Russ Feingold (Wisc.), and Ted Kaufman (Del.)—and Independent Sen. Bernie Sanders (Vt.), in sponsorship of the original bill (S. 2886). But the small number of names belies the broad support for the measure.

For example, there are 14 sponsors of a similar bill for the simple restoration of the Glass-Steagall standard, in the House of Representatives (H.R. 4375).

Democratic insiders have reported to the LaRouche Political Action Committee (LPAC) that extensive polling on the Glass-Steagall issue per se, has shown that 78% of the electorate is in favor of the reform, which would erect a firewall between commercial and investment banking. Also indicative of the mood, is the fact that a growing number of "Prodigal Son patriots" from the banking community are issuing public statements indicating that they now realize that the repeal of Glass-Steagall in 1999 was a very bad mistake. These include Warren Buffett's number two Berkshire Hathaway executive Steve Munger, Merrill Lynch former CEO David Komansky, Kansas City Federal Research Board chief Thomas Hoenig, and former Citibank CEO John Reed, among others.

The leading voice for restoring Glass-Steagall, of course, has been LaRouche himself, who issued a call on Sept. 27, 2008, for bringing back the FDR standard, as an essential follow-on to his Homeowners and Bank Protection Act. LaRouche has emphasized that the thinking expressed by McCain and Cantwell, in their public statements on the bill, is fully consistent with his intention and policy.

While the McCain-Cantwell initiative has now been introduced as an amendment to Sen. Chris Dodd's 1,400-page financial reform bill, LaRouche has emphasized that its passage would totally change the character of the bill as a whole, by putting forward the only statement of principled intent. President Obama, who, along with the leaders of his economic team, has promised to veto the financial "reform," if it were to include this measure, would be put on the spot, as to whether he would support it, or expose his traitorous nature by acting against it. If he did the latter, this could well be the issue that leads to his impeachment.

It is quite possible that the British-controlled President, acting through Senate Majority Leader Harry Reid, will try to prevent the Glass-Steagall amendment from being added to the Dodd bill, by denying it a vote. Should this happen, Cantwell and Feingold, at least, have indicated that they are so determined to put this protection in place, that they will filibuster the bill as a whole. It remains to be seen whether the U.S. public, under LaRouche's leadership, will permit Reid's shenanigans to prevent this crucial piece of legislation from coming to the floor for debate, and near-certain passage.

Europe Implodes

Meanwhile, the breakdown crisis of the world financial system is setting the world on fire.

LaRouche stressed, in his webcast address, that it was the British themselves, acting through their Inter-Alpha Group, who detonated this new, more dramatic stage of the crisis, by the way they detonated the Greek crisis. They were going for a "game-changer," which would take the next giant step toward destroying all sovereign nation-states, with Germany as one major target—to be followed by the United States.

On May 6, they received a new jolt, with the so-called unexplained 1,000 point drop on the U.S. stock market—an indication that their global system was going through a totally uncontrolled meltdown. The British escalated.

The British government and its puppet, Barack Obama, went into action. Through a series of weekend emergency meetings, they pushed European Union finance ministers and heads of state into new, huge panic bailouts "for the euro"—in which Her Majesty's U.K. government itself does not intend to take part. The new bailouts, announced Sunday night in a rush before Asian markets opened on the morning of May 10, ended up totalling over $1 trillion.

It won't succeed. As LaRouche said at the webcast, "The attempt to pull a swindle ... using a bailout of Greece, to try to wreck the nations of the continent of Europe, the euro group, has backfired, and has struck at the heart of the system, the euro system, which is controlled by the British monarchy, the British Empire group." If the United States now adopts LaRouche's Glass-Steagall policy through the Senate, defeating Obama's moves to stop it, the British pound, and the whole British policy swindle, will sink to the ground.

As bank and bond credit conditions in the past week plunged back to their "freeze-up" status during the crash phase of early 2009, three and perhaps more new bailout schemes were being whipped up by the finance ministers for instant attempts at implementation. British Prime Minister Gordon Brown had called Germany's Chancellor Angela Merkel, whose government is supposed to cough up the greatest part of the bailout funds, on May 7 and 8, to break her resistance to the schemes. Obama called Merkel on May 7 and 9, and "stressed the urgency of all European Union members taking resolute steps to build confidence in the markets," confessed the White House.

But British Chancellor of the Exchequer Alistair Darling had the following nice formulation for Sky News: "When it comes to supporting the euro, that is for the Eurogroup countries [Britain is not one]. We need to show again today that by acting together we can stabilize the situation."

One scheme will add EU60 billion to an existing EU50 billion "currency stabilization fund"—up to now, a back-up facility for currencies of non-EU member countries—and turn it to one that would "defend the euro." A second crazy element would let the European Commission, a wholly appointed (i.e., non-elected) supragovernmental bureaucracy, use the European Union's budget as collateral to borrow bailout funds, immediately for the sovereign debts of Spain and Portugal this week. A third scheme is to create a "European IMF," requiring all EU governments to cover any debts if one country defaulted on loans backed by its EU "partners." The Wall Street Journal reported that the 27 euro-fools pledged to accelerate budget cuts across the bloc, and devise severe sanctions for violations of the "Maastricht 3% rule," which bars EU nations from incurring deficits greater thanof GDP. A fourth scheme would have the U.S. Federal Reserve bank flood the European central banks with currency swaps liquidity. And the European Central Bank will probably play a role, said the Journal.

The Federal Reserve provision, while not highlighted in any of the discussion of the agreements, is perhaps the most crucial of all. It means that, without the Glass-Steagall protections, the U.S. currency will be drawn into the vortex of the European collapse, and be set up for destruction, faster than you can say "Weimar hyperinflation."

If you didn't like the bailouts of 2008, wait until you see this one.

Heaven or Hell

LaRouche's May 8 webcast was dominated by the Glass-Steagall question, both in the opening presentation, and throughout the questions and answer period that followed, in which he came back repeatedly to the fact that passage of this crucial amendment was the only issue on the agenda, the strategic opening available to shift the entire system. (The full webcast can be viewed at, and the transcript will be available there in the near future. The next issue of EIR will also publish the entire transcript.)

We include some crucial elements here, beginning with the challenge LaRouche posed at the end of his opening statement:

Glass-Steagall is

the only thing that's important right now, because it's going to determine the course of future history: Is the Glass-Steagall reform, which is now on the table, going to be immediately implemented, to prevent the United States from joining the British in going to Hell? Because, if not, we don't have a future, at least, not for a long time to come. If we do, then there is a future. And then, once we decide we're going to do that, how do we maintain the morale, the moral character of our populations? We do that, by providing them the assurance, of a knowable, understandable science education, and practice, where they can understand in their own terms of reference, at least in good approximation, that mankind has a future! And that we must organize our policy, not simply for our comfort—we must do that; but we must organize our policy, with a view to what is going to happen to future generations of humanity. We have to earn the respect of future humanity! That we are not only providing the solutions for these problems, or the seed for the solutions, but we are creating a system of commitment, which will ensure that we will continue to progress in that direction, indefinitely; and will give people some sense of what the practical measures are, which can lead to that result.

So, let's take the issue: The issue of the collapse of society, the collapse of the present world system, which is now ongoing, which exploded in your face on Thursday [May 6], in the stock market, and which is going to explode in a higher form this coming week, because it's already exploding. Are you going to respond to this, with this change, which I indicate—the Glass-Steagall reform? Otherwise, if you're not going to respond to the Glass-Steagall reform now, you're wasting your time by being alive! It's that true.

This is the only thing that's morally significant: Are we willing to commit ourselves to this Glass-Steagall perspective now?! Now, that leading political forces have put the thing on the table? It's the only thing that'll save us, and there's nothing else worth doing. Anything else, is a damned waste of time! Just babble.

So, let's take the position: Understand the crisis; we can solve it. We have a core of recognized American leaders, who are now leading an effort which will grow very rapidly, not only in the United States, but will grow also, by reputation, in Europe and elsewhere. Let us assume that we are going to win! Because there's no time worth spending on the alternative: You're looking at Hell or Heaven. And once you've made the choice, then you better to start exploring Heaven. Not going there faster—that may happen, but in terms of, you are committed to ensure, that our victory over the enemy, our victory through initiation of a Glass-Steagall reform, will empower actions, which will lead to the salvation of mankind, from the kind of threat that's immediate.

The 'Greek Crisis'

The first question to LaRouche, following his keynote address, came from Russia, and dealt with the Eurozone crisis, in terms of the Greek situation. LaRouche elaborated on the significance of that blowout, and its solution, as follows:

So what there is, is there's an effort of this empire, which is an international financial empire, of a monetary system—this empire has now gone to the point, with the aid of Alan Greenspan, of creating a mass of nominal monetary debt, which exceeds all imagination! Nobody knows how big this thing is! It's growing like a wild cancer. And the world can not live with this debt. But the people who are behind it, insist on having the power to rule.

Now, the tendency to have under these conditions are two: one, is to simply proceed to blow up the world, as has been done by empires before. This was done in the 14th-Century New Dark Age: 30% of the population or more was wiped out by this process! And a completely new form of civilization eventually emerged. That's the one thing that's coming out of the British Empire.

And the British Empire also controls most of the financial-monetary systems of the world. So, if you're going to save civilization, you have to destroy it, you have to destroy the British Empire. The British Empire has gone ahead, under the filthy Presidents, such as George H.W. Bush, George W. Bush, and now, Obama, who are completely alien in terms of their policies to anything that corresponds to the interests of civilization generally, or the United States in particular.

And the system is coming down.

What they're trying to do, is blow up the system, by, instead of allowing Greece to reorganize its money system, they are imposing that the Greek debt be bailed out by Europe! Now, the debt is worthless, in large part! Therefore, asking a Europe, which is already on the edge of breaking up, to absorb an unpayable debt, which the Greeks can never repay—not possible!—means you're going to blow up Europe. And the British are doing that.

Now, what the British are afraid of, right now, most of all—the thing they fear the most—is a Glass-Steagall reform by the United States. If the United States adopts the Glass-Steagall reform, which is now being pushed, as I mentioned earlier, then the British Empire is defeated, and we are saved.

Europe, in the meantime, would go through a collapse. But it could be temporary, if the United States had reestablished itself as a Roosevelt-style reform, as I indicated earlier today. Then we can make it, and we could save Europe, we could save Russia. We could also by doing that, we could ensure the security of China, of India, of other parts of the world. We could stop this world crisis, even now, if we did that.

If we don't do it, if we don't push through the Glass-Steagall reform, which I specified, there is no hope for humanity's decent existence in the immediate future—beginning this week! And next. What happened on Thursday was no accident: it was a lawful development in a system which is doomed.

The center of the power of fake money, is the British Empire. It's located, as I said, in this group that was organized by Jacob Rothschild, back in 1971, called the Inter-Alpha Group: That is the center of political-monetary power on this planet. And that thing is ready to collapse, especially with the case of a very sloppy election in Britain, which is another factor of instability.

So what we have to do, is say: 'You're finished' to them. 'We are establishing a U.S. dollar system again. We're going to cancel all these forms of debts which are fraudulent. We're going to reorganize the banks, the way we know how to do it, and have done in the past, following our laws which we voted in our Constitution and other forms. We're going to survive! And the world is going to turn around to cooperate with us, to replace the British system, with a system consistent with the Glass-Steagall principles.'

That's what has to happen, and that's the way you have to look at it.

Actually it was no coincidence that it happened in this period. When I scheduled this appearance, here, today, for this time, I knew we were entering into exactly this type of property. And that's what's happened to us.

But the problem is, that most people who call themselves economists, don't understand economy! They believe in monetary systems! And the point is, you're in a monetary system, where the values are largely fake! Most of the listed monetary values in the world today are totally fake! And if you keep blowing that bubble up, it's going to pop! And it came popping time! And that's what's happened.

And it was going to happen about this time, and I knew it was going to happen about this time, but it happened a few days before this time! There was nothing coincidental, nothing surprising about that that—history is like that. And if you do as I do, and think as I do, in terms of physical economy and not this papier-mâché kind of economy, or an invisible papier-mâché economy which we have now—it's gone! It's doomed, it's gone! No mystery about it. The problem is, people attach too much value to this crazy system. They depend upon it. They think it has some intrinsic value, and it doesn't. It's only paper—and it's not even paper any more! It's electronic whisps some place. So, that's what happens.

So this thing is inevitable. What we have to do, is, presuming we carry through the Glass-Steagall reform, and everything depends on the Glass-Steagall reform—if we carry that through, then we will survive, and we will be a power, to go into Europe, and talk to nations such as Germany, and Russia, and Italy, and France—even the French'll probably agree—and we will say, 'Okay, why don't you just join our system: Resume your sovereignty as sovereign nation-states, and enter into an agreement with us, like the Roosevelt agreement at Bretton Woods. And we will create a fixed-exchange-rate system, based on this, our tradition of our system.' And, that's the solution!

But, see, Russia, in particular, has a stinking monetary system, right now, financial system, which is owned by the Caribbean pirates, who own Russia from afar. And the poor Russians can't get access to the money the Caribbean pirates have, and they call it 'Russian money.' And they're looting Russia for the sake of the profits of the Caribbean pirates. So, we can help them with that. We can enter into agreements with governments in Western Europe, and with Russia, and China—China will be very happy to have such an agreement—and India. And a few other countries.

If we enter such an agreement, we've created a new international system, a Bretton Woods system like that of Franklin Roosevelt. Under those conditions, doing the kind of work I indicated, we can survive, we can progress. And we can say, 'bye-bye,' to the British Empire!

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