EIR LEAD EDITORIAL FOR TUESDAY MARCH 14, 2023
Bank Failures! As the Trans-Atlantic Financial System Ruptures, Will the World Choose a New Paradigm?
March 13, 2023, 2022 (EIRNS)—Following the failure of Silicon Valley Bank and Signature Bank, the unlimited insurance of deposits held at those institutions, in apparent violation of U.S. law, signals a policy orientation towards a bailout of the entire banking system.
The gravest error, the most dangerous of moral hazards, would lie in refusing to treat these bank failures as the tip of the iceberg in a national, and in fact, trans-Atlantic financial implosion, requiring not piecemeal solutions, or indeed financial solutions of any kind, but demand rather the recreation of the economy on a commitment to increasing physical wealth through the application of science, technology, and infrastructure to improving the productive powers of labor.
Last week’s shocking news that China had successfully mediated a resumption of diplomatic relations, and agreement to a package of security agreements, between Southwest Asian rivals Saudi Arabia and Iran, points the way forward, shining light on a new path toward indivisible security based on development as the name for peace. U.S.-U.K.-NATO imperialists were dismayed, and much of the Global South happy, to witness the emergence of another nation, China, at a higher level on the world diplomatic stage.
How does the evolving world strategic and economic architecture change the potential for a rethinking, on a nearly global basis, of the failed economic practices that have brought the U.S. and trans-Atlantic economies to a state of absolute bankruptcy, in which deadly hyperinflation were the only way to attempt to maintain financial values?
Should Congress address, promptly, the collapse of a financial era? Yes. But could success come purely from the United States? What role would international bodies such as the G20 play in insisting, for the sake of the world, that the rot of the system be addressed?
Think seriously on this question, act on it, and stay tuned for a fuller statement from Helga Zepp-LaRouche and the LaRouche movement on March 14.