Wall Street had demanded that President Barack Obama stop the reinstatement of Glass Steagall at all costs and instead move ahead with more bailouts and bail-in looting of the American people to preserve their thoroughly bankrupt system. The Wall Street policy means an acceleration of crippling hyperinflation, devastating austerity and, ultimately, mass murder of the nation’s most vulnerable citizens.
Several highly qualified Washington sources have confirmed that this was the ultimatum delivered by the Wall Street delegation that met privately with Obama on Wednesday afternoon Oct. 2 at the White House. The delegation was organized by the Financial Services Forum, a coalition of the nation’s 19 biggest banks and insurance companies, and included Jamie Dimon, CEO of JPMorgan Chase; Lloyd Blankfein, CEO of Goldman Sachs; Brian Moynihan, CEO of Bank of America; Michael Corbat, CEO of Citibank; and Anshu Jain, CEO of Deutsche Bank.
IMF Managing Director Christine Lagarde delivered the same message in an interview with the Financial Times on Oct. 4, in which she demanded that the Federal Reserve maintain the $85 billion a month quantitative easing bailout of the top Wall Street and Europe banks indefinitely. And Treasury Secretary Jack Lew, speaking for Obama, threatened that any U.S. default will trigger a financial crisis far worse than the September 2008 meltdown.
The reality, as bluntly stated by Lyndon LaRouche today, is that the ongoing government shutdown and threatened default on U.S. sovereign debt on Oct. 17 is nothing more than an orchestrated swindle, aimed at conditioning the American people for the murderous policies that have already been accepted by Obama and by leading Congressional Republicans.
LaRouche warned: “Unless Glass Steagall is passed into law immediately, Obama and Wall Street plan to unleash the worst mass murder austerity and looting of the American people ever. The total separation of commercial banking from all the gambling activities under Glass Steagall is the only remedy. Bankrupt Wall Street now, before they can unleash their genocidal schemes full-force. President Obama is nothing but a tool of these Wall Street interests, as evidenced by his slavish commitment to maintain the bailout/bail-in program and stop Glass Steagall.”
LaRouche continued: “In a matter of days or weeks, Obama and his Congressional Republican cohorts, on orders from Wall Street, are going to unleash absolute Hell on the American public through even deeper killer austerity cuts than the sequestration of the past months. The government shutdown is the biggest dog and pony show ever, intended to prepare the population to accept more hyperinflation, more bailouts and bail-ins, and worsening conditions so that Wall Street can survive a bit longer while honest, hard-working Americans die in ever greater numbers.
“It is time for Congress to break from Wall Street and the bankers stooge in the White House, and do the only thing that can set the United States back on a course of genuine prosperity: Pass Glass Steagall by a veto-proof majority this week.”
“By passing Glass Steagall, the vise-grip of Wall Street is immediately broken. Once the too-big-to-fail banks are no longer kept alive by tax-payers bailouts and depositor bail-ins, they go under. Good riddance! We are then left with a viable but undercapitalized commercial banking system and with an immediate opportunity to revive Federal government credit to launch great economic projects like NAWAPA and an Apollo-style crash international program for commercial thermonuclear fusion energy.”
“The moment of truth has arrived,” LaRouche concluded, “and I call on the American people to demand that Congress stop behaving like a bunch of corrupt fools, going along with the Wall Street Obama swindle. Pass Glass Steagall, wipe out the power of Wall Street and their European allies, and get on with the business of reviving this nation and the world around a plan of genuine development, as my colleagues and I have spelled out.”