The same people who denied the existence of a systemic crisis in 2007 are now telling anyone who will listen that the financial markets are doing just fine, no danger of a meltdown. Sure, there were major losses on the stock markets in 2018, they say, but each had its own specific cause, unrelated to the others. For example, the Dow Jones lost about 10%, but that was due to Donald Trump’s so-called “trade war” with China; London was down by 12.4%, but only as a result of Brexit uncertainties, while Frankfurt’s 18.3% drop had to do with problems in the auto industry and at Deutsche Bank, and Milan lost 16.5% because of the “populist” government in Rome. For the biggest drop of all — Athens with 24.7% — there was no obvious cause, so it was attributed it to a “contagion” efffect.
A huge scandal involving tax evasion and stealing of tax revenues by the major “universal” banks has only recently become well-known in Europe. The obvious conclusion to draw from such a vast swindle is the need to implement a strict separation among banks, according to the criteria of the original Glass-Steagall Act in the United States.
If too hard-pressed, the Italian government could play the Glass-Steagall/bank separation card, as financial meltdown threatens.
In an article written May 26 for the German daily Neue Solidarität, the Chairwoman of the Schiller Institute Helga Zepp-LaRouche, discussed the impact of the negotiations on a new government in Italy on the overall strategic situation. Her article was written less than 48 hours before that government was rejected by State President Mattarella under pressure from international markets and the ECB. It begins as follows:
Thirty years ago, on Oct. 19 1987, the biggest stock market crash in one day occurred on Wall Street. On that “Black Monday”, the Dow Jones dropped by a spectacular 22.6% in panic sales. Many articles were published on the occasion of the 30th anniversary, but virtually all failed to correctly answer the question generally raised: “Can it happen again?”
Over the past decade, China’s banks have generated some $10 trillion of credit. During the same decade, the financial institutions of the trans-Atlantic sector plus Japan have issued more than $15 trillion in cumulative “quantitative easing” (QE). But whereas China’s credit has gone into productive activities, the western QE money – half again as much as what China issued – went exclusively into pumping up the speculative bubble again.
Just days after the White House spokesman raised the issue of re-establishing the Glass-Steagall Act, the Vice-Chair of the Federal Deposit Insurance Corporation Thomas Hoenig spoke of bank separation, setting off a new wave of panic among the mega-banks.
The French Constitutional Council announced on March 18 the 11 Presidential candidates who had received at least 500 duly validated “presentations” from elected officials throughout the country – and Jacques Cheminade is among them. According to the rules, signatures must come in from at least 30 different administrative departments (out of 101), and not more than 50 from the same department, to ensure national representativity. The first round of the election is on April 23.
After interviewing Jacques Cheminade, until recently President of the French party Solidarité et Progrès, RTL announced in an article on Feb. 21 that the presidential hopeful had over 500 written pledges from mayors to sponsor his candidacy, which is the minimum needed to be able to run for the French presidency. After that article, virtually all major media covered Cheminade’s statement (AFP, Les Echos, France Soir, Le Figaro, Libération, Europe 1, France Info, France TV Info, etc.), and a number of them took statements from his campaign staff as well, including AFP. The candidate also gave an excellent 20-minute interview to the news channel LCI on Feb. 24.
Immediately following the Feb. 16 press conference by Donald Trump, Lyndon LaRouche commented that if his presidency is to be successful, he must move quickly to re-instate Glass-Steagall bank separation and to rein in Wall Street, as he pledged to do during the election campaign. In fact, over the past weeks, as the threat of a new financial crash grows, there has been a surge of support in the United States for re-establishing a strict separation between deposit and investment banks, as mandated under the Glass-Steagall Act.