Executive Intelligence Review
Subscribe to EIR


Glass-Steagall versus
the Debt-Ceiling Fraud

July 28, 2011 (EIRNS)—As of this writing, all of Washington is being worked into a frenzy over the alleged deadline for raising the Federal debt ceiling by Aug. 2. In effect, Congress and the U.S. population are being brainwashed into making choices within a bankrupt monetarist system, which will not save the system, or the population itself, from genocidal collapse.

While there are many frauds involved, one of the key ones is that the terms of the debate all treat money as the standard of value. And every dollar is being treated the same! Therefore, a dollar of debt incurred on behalf of saving AIG from suffering the just desserts of its gambling and thievery, is being treated the same as a dollar of debt incurred for upgrading roads, or supporting NASA. Similarly, the dollars being discussed as potential cuts equate genocidal cuts in Medicare, with life-saving cuts in military operations, such as the unconstitutional Libyan adventure. Acting on such a basis is not only incompetent, but dangerous to the very survival of the nation.

To the extent that the financial crisis the United States faces is real, it can only be solved by abandoning such a monetarist approach, and returning to the Hamiltonian concept of the credit system, in which the issuance of money is linked to the creation of physical value, even if to be realized in the future, several decades hence. And the immediate tool for returning to such a credit system, is the restoration of the Glass-Steagall principle which President Franklin Roosevelt put into effect in 1933.

EIR can attest that, within the Halls of Congress, despite the brainwashing environment about draconian budget cuts and debt ceilings, there is an active debate ongoing about Glass-Steagall, especially H.R. 1489, which Rep. Marcy Kaptur (D-Ohio) has put on the table. Republicans as well as Democrats have been involved in intense discussions with LPAC organizers on how Glass-Steagall would work to solve the bankruptcy crisis, nationally and in the states. Yet, so far, the co-sponsors still stand at 32, and the agenda of lunacy prevails.

As LaRouche and the six LaRouche Congressional candidates have stressed, it's going to take massive pressure from local constituency leaders, most of whom are disgusted with both political parties, to shift this situation. A paradigmatic such process continues in Washington State, for example, where now a sixth local Democratic Party district has passed a resolution for H.R. 1489. You can be sure this kind of activity will be escalating in the immediate days ahead.