“The schemes all amount to a demand that Germany both surrender it sovereignty and bail out the entire eurozone — nothing short of economic and political suicide for Germany.” LaRouchePAC
It All Comes Down to Germany…
June 27, 2012
This Thursday, June 28, will occur the 20th EU Summit since early 2012, on the European financial crisis, and the drumroll is now deafening to impose a one-Europe superstate, and fascist trans-Atlantic bail-out, at the cost of nations and populations. The line of resistance to this in Europe is Germany, whose Chancellor Merkel yesterday said ‘no’ to Europe-wide sharing of debt and bank liabilities. She said that it would be “economically wrong and counter-productive.”
The pile-on against Germany is coming from all sides, during intense pre-summit skirmishing. The time has run out for the empire. On the nominal level, Monday, the fifth member of the eurozone officially requested a bail-out — Cyprus.
Last night, a meeting, called on very short notice, took place in Paris between the finance ministers of Germany, France, Spain, and Italy, and the head of the European Commission, hosted by French Economy Minister Pierre Moscovici.
On Wednesday, June 27, German Chancellor Angela Merkel and French President Francois Hollande will have a final, summit-eve meeting.
Tuesday, elements were released on the Euro-Super State, demanded by the big four euro-agents: ECB head Mario Draghi, European Commission President Jose Barroso, European Council Pres. Herman Van Rompuy, and Euro-group Chairman Jean-Claude Juncker. The measures they will call for on Thursday, include such standard-issue planks as common debt issuance, fiscal integration, and centralized budget authority.
Another super-state how-to report was issued yesterday, by a panel led by former Chancellor Helmut Schmidt and former French minister Jacques Delors, an originating culprit behind the eurozone. Aptly titled, “Completing the Euro,” this report likewise has proposals for an all-Europe Treasury authority, euro-bonds, and similar measures.
Cutting through all the B.S., the schemes all amount to a demand that Germany both surrender it sovereignty and bail out the entire eurozone — nothing short of economic and political suicide for Germany, which Lyndon LaRouche described yesterday as the only remaining real economy in all of Europe, given that all the big French banks are hopelessly bankrupt. (1)
More Pressure on Germany To Cave In
June 28, 2012
In her government statement Wednesday afternoon in the Bundestag, German Chancellor Angela Merkel repeated her sharp criticism of the EU leadership paper, saying that it puts “guarantees” too much into focus, instead of more “competition and reforms.” Instruments like euro-bonds, euro-bills, and debt redemption funds were not possible according to the German Constitution. She stressed, “also, economically, I consider them wrong and counterproductive.” For the June 28-29 European Council meeting, in Brussels, she expects a lot of controversy.
Tuesday, before the FDP parliamentary faction, Merkel had promised she would not give in to the demands on Eurobonds or similar proposals, “as long as I live.” This reportedly prompted some to get up and tell her, “We wish you a long life!” Der Spiegel reports that the government vehemently opposes the EU leadership for a joint debt union. Yesterday, also, the Foreign Ministry had criticized the “master plan” of the EU leaders. State Secretary Michael Georg Link remarked that, while the Eurozone should be kept, no confidence is won by a mutualization of debts.
The financial daily Handelsblatt reports official government estimates that Germany is already in a bind, with EU310 billion in guarantees.
Meanwhile, attacks and pressure on Germany are continuing. Probably as a signal, yesterday, a minor U.S. agency, Egan-Jones Ratings Company, downgraded Germany from AA- to A+, saying that “whether Greece or any other country leaves the currency union or not, Germany will in any case be left with massive additional outstanding claims.” Then, they attack Merkel for her resistance against Eurobonds and her fiscal austerity demands, which leads “to further tensions” with other EU member-states.
This echoes the line of outrageous attacks by George Soros in the last several days, such as yesterday’s interview in Der Spiegel, warning that if Germany doesn’t buckle, it will become “hated.” There, he heaped praise on Finance Minister Wolfgang Schäuble as “representative of the Germany of Helmut Kohl. He is the last European standing, and he is a tragic figure, because he understands what needs to be done, but he also realizes the obstacles that stand in the way, and he cannot find a way to overcome these obstacles.”
Soros says that “Germany will always do the minimum to preserve the euro. Doing the minimum, though, will perpetuate the situation … The result will be … Germany is seen as an imperial power … hated and resisted, because it will be perceived as an oppressive power.”
Spiegel asked Soros repeatedly, “How is this that Germany’s fault?” Soros replied that it was France and Germany which pushed for it. Then, he says, in typical mafia fashion, that back then, “Germany that was always willing to pay a little bit extra to reach a compromise that everybody accepted, because Germany was so eager to get European support for reunification. That was called the ‘farsighted vision,’ which created the European Union,” and Germany profited most from it. (2)
A Global Economic Miracle or a Collapse of Civilization:
Two-tiered Banking System and a Reconstruction Plan for Southern Europe, the Mediterranean, and Africa!
Helga Zepp-LaRouche and former French Presidential candidate Jacques Cheminade published an urgent appeal to governments and parliaments on precisely this issue on June 17.
Under a credit system of sovereign nation states, we can realize a new economic miracle in Southern Europe, the Mediterranean and Africa, and build up the real economy in all of Europe again. This program, initiated by Helga Zepp-LaRouche, is already circulating in many nations, in the English, German, Greek, Spanish, Italian, and French languages. (3)
The following appeal was issued June 17, for urgent action across Europe and the Trans-Atlantic region by Helga Zepp-LaRouche. It is available in German on http://www.bueso.de, the site of the Buergerrechtsbewegung Solidaritaet party.
Appeal to Governments and Parliaments – Glass-Steagall Now!
1. All nations of the Trans-Atlantic region must enact a law which would separate commercial banks from investment/speculative banking entities, based upon Franklin D. Roosevelt’s Glass-Steagall bill of June 16th, 1933. Up until the beginning of the 1980’s, the principles of Roosevelt’s reform were in place in European nations, in the form of strict regulation, and ensured that the banking sector mainly took on the character of commercial banks, and access to private accounts for risky speculative operations was impossible.
As things stood before Glass-Steagall was dismantled in 1999 through the Gramm-Leach-Bliley Act, commercial banks must once again be completely separated from both investment banks and the insurance sector.
2. Commercial banks must be put under government protection, whilst the investment banks put their books in order without any help from taxpayers’ money, which in practice means that toxic paper must be written off in the trillions, even if this leads to the insolvency of the banks themselves.
3. A National Banking system in the tradition of Alexander Hamilton, within the framework of a new Credit System, must provide long-term credit with low interest rates for productive investments, which would in turn increase the productivity of the economy by promoting an increase in energy-flux density, and in scientific and technological progress.
4. The reconstruction of the real economy should be facilitated through long-term treaties of cooperation between sovereign nation-states, which would launch well-defined infrastructure and development projects in the context of the Mediterranean plan for an Economic Miracle, seen as a necessary extension of the Eurasian Land-Bridge. These contracts represent a de facto new credit system, a New Bretton Woods system, in the tradition of Franklin D. Roosevelt.
The purpose of re-enacting Glass-Steagall and implementing a Credit System is by no means only an improvement of technical details in banking, but rather, how the economy can ensure the survival of humanity over a period spanning many generations into the future, whilst increasing the productive powers from one generation to another. Human beings must once again be at the center, and the very purpose, of economics.
We, the undersigned, direct our urgent appeal to governments and parliaments, that they fulfill their constitutional duty and protect the general welfare of the populations they represent, by immediately enacting Glass-Steagall banking separation into law. (4)
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