Subscribe to EIR Online
This article appears in the April 27, 2012 issue of Executive Intelligence Review.

Glass-Steagall, National
Banking, and NAWAPA XXI

[PDF version of this article]

April 21—The Lyndon LaRouche Political Action Committee initiated a nationwide mobilization today to win support for the following emergency resolution to the U.S. Congress. It is being circulated for endorsement by state and local governing bodies and other institutions, to press Congress to act immediately to re-instate the Glass-Steagall banking standard, as the first step toward implementing a National Banking system and the NAWAPA XXI proposal for infrastructure development on a continental scale.

The strategic, economic, and financial well-being of the United States stands confronted with an existential threat, virtually unparalleled in its history. The driver for this threat is the breakdown of the international monetary system; the trigger is the imminent collapse of the euro system. Every measure that the Obama Administration has taken to bail out this monetary system, just as the Bush Administration did in 2007-08, has only made the situation worse. More than $29 trillion has been pumped into this bailout, whose hyperinflationary damage could prove to be more deadly than the wars on three continents that it threatens to unleash.

Hospital closings, school closings, factory shutdowns, violations of national sovereignty and Constitutional law, the breakdown in public safety, and skyrocketing suicide rates in Greece and other countries, are the rule, not the exception, as European countries submit to the dictates of the made-in-London supranational bailout.

The United States has a proud tradition of effective combat against this type of financial oppression and chaos. Indeed, the Constitutional Convention was convened in 1787, six years after we had defeated the British on the field of battle in the Revolutionary War, so that we might defeat the British in the economic and financial realm, where they had unfortunately been effectively sabotaging the Founding Fathers' aspirations for true national sovereignty. Embedded in the Constitution that was crafted at that Convention, are the principles of the credit system that Alexander Hamilton and George Washington deftly wielded, turning monetary debts into circulating credit through the use of the powers of Congress and national banking, and the launching of national internal infrastructural improvement projects, which functioned to secure unfettered economic sovereignty for the United States and its people.

Abraham Lincoln successfully applied the Founding Fathers' credit system principles in his war against the British-backed Confederacy, with the implementation of his Greenback policy, and the launching of the long-delayed construction of the Transcontinental Railroad. Franklin Delano Roosevelt, likewise, applied these credit system principles, in his war with the economic royalists of Wall Street and their allies in London. First, he enacted the Glass-Steagall banking legislation as a major blow against Wall Street's speculative practices. Then, he launched his Four Corners development project perspective, including the construction of the Tennessee Valley Authority (TVA). His Reconstruction Finance Corporation (RFC) and TVA were two prime examples of credit system policies at work.

President John F. Kennedy embodied the same essential outlook, with his Apollo program, and his vigorous support for large-scale water projects throughout the Midwest and West of the United States. Sadly, when Kennedy was assassinated, his bold, multi-generational development outlook died with him. It is urgently necessary for America to revive its sense of mission, and its sense of strategic boldness in outlook. This can be achieved through the immediate re-enactment of Roosevelt's 1933 Glass-Steagall legislation, and a subsequent restoration of the U.S. System of Public Credit through the construction of NAWAPA XXI, the greatest economic development project in American history.

NAWAPA XXI is a 21st-Century version of the original 1964 North American Water and Power Alliance proposal for continental water management. The program has been updated and expanded in the NAWAPA XXI LaRouchePAC Special Report (March 2012) to specifically address today's economic needs, including the necessary re-establishment of the U.S. System of Public Credit.

It will create a continental system of water regulation to redistribute 11% of now-wasted runoff waters of northern Canada and Alaska to make the Great American Desert bloom, and turn would-be flood waters in one area into the means of fighting drought in another, all through the construction of a massive infrastructural network which can direct these flows and provide a scientific analysis for their best use. New infrastructure corridors involving most of the continent will lead to a re-industrialization of the United States, and the first industrialization of Alaska and northern Canada.

Water supplied by NAWAPA XXI will generate 42 gigawatts of surplus power for the United States and Canada, and supplement the existing water flows of the four major river basins in the U.S. Southwest, while irrigating 19 million acres of farmland (nearly doubling the total irrigated acreage to 41 million acres), and 3 million new acres in the Northern High Plains states, as well as farmland in Canada and Mexico.

As is demonstrated in a four-phase critical path outline, the unprecedented magnitude of this project, which will employ well over 4 million people in productive employment, is designed to generate a sufficient amount of present and future economic activity to enact a restoration of the public credit as a source for investment.

With a Glass-Steagall reorganization of the banking system that ties the remaining valid debts to the future economic activity of NAWAPA XXI, through the credit emissions of a new U.S. Credit Fund or National Bank, the United States will regain its status as one of the leaders for global development for the benefit of all nations, in the tradition of John Quincy Adams. Therefore, the ________________________ of ______________________ hereby calls on the United States Congress to take emergency action to initiate the speedy implementation of programs to build and implement NAWAPA XXI, in the following way:

  • Reinstatement of the Glass-Steagall Act, to achieve the separation of fictitious debts from legitimate debts, and to enable a retroactive annulment of all government guarantees or reimbursements for private gambling debts;

  • Once Glass-Steagall has been implemented, the vast machine of economic activity associated with NAWAPA XXI will allow the U.S. to make good on all valid state, municipal, and Federal debts that it deems necessary to fund. This program will be the basis for the emission of necessary credit through a sovereign U.S. Treasury, in collaboration with a newly established U.S. Credit Fund, sharing similar qualities of the First and Second National Banks of the United States, the Greenback-based national banking system of Lincoln, or the RFC of Roosevelt;

  • Establishment of a Credit Fund under authorization of the Congress. The timetable and choice of funding for valid debts and actualizing of new credit emissions will be tied with the investment cycles of NAWAPA XXI and related infrastructure and industrial needs, not the demands of Wall Street or international private banking interests.

The authorized NAWAPA XXI planning body will work with the relevant governments to determine how to meet pre-construction and construction-phase needs, while simultaneously increasing the power of all the layers of the economy involved.

Be it further resolved, that a copy of this resolution shall be forwarded to members of Congress from the state of _________________ and also be delivered to the President of the United States.

Back to top