by Rachel Brinkley
Rachel Brinkley, a member of the LaRouchePAC National Policy Committee, led the fight to shut down Wall St. and implement Glass-Steagall during her 2010 Congressional campaign in Boston, MA, successfully exposing the fraud known as Barney Frank. Frank recently emerged from his cave, not surprisingly, as a spokesperson for Hillary Clinton’s Wall St. agenda.
The current financial system is in the end stages of a total blowout and in need of urgent action. Near the end of the 1960s, economist Lyndon LaRouche forecast a breakdown of the Bretton Woods financial system. He was vindicated on August 15th, 1971, when Nixon took the dollar off the fixed-exchange rate system, floating the dollar and bringing in the post Bretton-Woods era of financial frenzy. LaRouche was right then, and today, 45 years later, that speculative era has reached its end with disastrous results. However, a new system has already been created, also based on the work of Lyndon and Helga LaRouche over 45 years, for a new global economic architecture.
The bankruptcy of the current system is indicated by the recent report by the Bank for International Settlements (BIS) and the International Organization of Securities Commissions (IOSCO) referenced elsewhere in this edition of The Hamiltonian, on the systemic threat posed by derivatives clearing houses. In any number of weak points in the overly-indebted system, such as Deutsche Bank, the Italian banking system, or energy derivatives, there could be a reverse-leverage collapse. The toolbox of financial instruments used to keep the system going since the last collapse has also run out. Quantitative easing has failed, and the real production of the trans-Atlantic system has come to a halt. The “helicopter money” proposed by Citigroup’s chief economist Willem Buiter is completely insane.
China, however, has taken up the question of solutions to address the illegitimacy of the current system. Helga Zepp-LaRouche participated at the Think-20 forum in Beijing prior to the upcoming G-20 summit, and she addressed the need for that organization to revise the axioms of current policies to address the fundamental crises facing civilization today.
This was also emphasized by other Chinese representatives. “The world economy is faced with great risks accumulating,” said Professor Cai Fang, the Vice President of the China Academy of Social Sciences. “We have to be more capable in dealing with volatility. The effect of contraction in the economy has become great.”
In her speech, Helga Zepp-LaRouche called for extending the New Silk Road to become a World Silk Road, as “a concrete offer to overcome underdevelopment,” and to create a pathway for 100 years of development, centered on win-win collaboration instead of geopolitical conflict. She emphasized the need for “achieving qualitative breakthroughs in the understanding of qualitatively new physical principles of our universe,” through space development and nuclear fusion research, to drive economic progress and inspire the creativity of our youth.
Moving piles of worthless debt around will do no good. A global Glass-Steagall, as Helga LaRouche called for, has to be implemented immediately. Symbolic measures will not work. Hillary Clinton has rejected Glass-Steagall and shown herself to be on the wrong side of any policy regarding the financial breakdown.
Lyndon LaRouche himself has emphasized the essential orientation of an economic reorganization around the principles of Manhattan-based Treasury Secretary Alexander Hamilton. Without such a basis, LaRouche noted, “you’re going to fail because you haven’t got a weapon which is effective enough to do the job you want to do.”
Lyndon and Helga LaRouche have been right for 45 years, and are ready to play an active role in pulling our nation and the world into a new paradigm. Our nation needs a policy committee, centered in Manhattan, of citizens, activists and elected leaders who will devote themselves to bringing to fruition the needed elements of the solution: Glass-Steagall, the dissolution of the bankrupt system of Wall St., and a new era of economic and scientific collaboration, instead of war, with the United States joining the New Global Silk Road.