EIR conomics E

Who Will Prevent Apocalypse In Bankrupt Europe?

by Helga Zepp-LaRouche
June 18According to EU Commission President JosManuelBarrosowhoisknownforspendinghis holidays aboard the yacht of the wealthiest man in Greece, Spiro Latsis, and who organized a bailout packageforthelattersbankruptbanktheEuropean nationsarethreatenedwithanApocalypse,civilwars, andmilitarycoupsinseveralstates,ifthefundsavailableforfurtherbailoutpackagesarenotincreased,and ifcitizenskeepondemandingthesocialbenefitsthey are used to. Barroso issued this outrageous provocationatameetingwithtradeunionleadersinBrusselsa weekago. The truth is exactly the opposite: If the European governmentscontinuetosubmittothedictatesofthe EU,andkeepincreasingtheirsovereigndebtswithinflationary methods, just to the save gambling banks, and,atthesametime,brutallycutthelivingstandards ofthepoorandnear-poorportionsofthepopulation, thenanApocalypsewillthreatenusverysoon,even as early as July 1, when the European banks, among others,willhavetorefinanceEU442billion,orGreece willdemandanewbailoutandSpainitsfirstone. ItisobviousthatEuropesgovernmentshavelearned nothingwhatsoeverfromhistory,whichtheydemonstratedonceagainattheEUsummitmeetinginBrusselsJune17-18.InthetraditionofChancellorBrnings austeritypolicyofthe1930s,whichledtofascismand militarydictatorship,theydecidedonvirtuallynothing
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exceptmoreausterity,whichwasperceivedasGermanizationsincenobodykeepsasclosewatchover its budget as does the German government. In other words:Brningforeverybody!

Impotent Summitry
Far from going after the problem at the root, and either deciding in favor of strict re-regulation of the banks,asexistedinGermanybefore1992,orinfavor of a two-tier banking system (like the Glass-Steagall systemthatformerlyexistedintheUnitedStates),the completelyunworkabledemandsforabankingfeeand afinancialtransactiontaxcollapsed,asexpected,becauseofresistancefromGreatBritain,theCzechRepublic,andSweden.Thefinaldocumentsaidthatafinancial transaction tax should be investigated and developed.ChancellorMerkelsanswertothequestionofwhoshouldlookintotheadoptionofsuchatax: TheG20ortheIMF,ofcourse;Idontknow. ItdoesnttakemuchboldnesstoventurethepredictionthatnothingwillcomeoftheG20SummitinToronto at the end of June either.As long as Obama, a loyalservantofWallStreet,remainsinoffice,andas longasthegovernmentsofcontinentalEuropestickto theirblindnesswithrespecttotheroleofGreatBritain, anearlycollapseiscertain.Itseemsinconceivable,but Canada intends to spend $1.1 billion on the summit, includingforanartificiallake,$4millionforasecurity
EIR June25,2010

Training exercises of the European Police Forces in Lehnin, Germany, on June 14. They are preparing for possible social upheaval in EU countries. Shown are French and Portuguese police in front of a burning barricade.
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fence,and$993millionoverallforsecuritymeasuresat this gold-plated summit, according to the Toronto Star. ThemonthlyreportoftheEuropeanCentralBank (ECB),releasedonJune17,underscoresonceagainthe absoluteirresponsibilityofthefailuretoactwhether out of cowardice, incompetence, or corruption, or a combinationofallthree.AtthebeginningofMay,there wasathreatofatotalbreakdowncrisisthatwouldhave overshadowedthebankruptcyofthe U.S.investment bankLehmanBrothersonSept.15,2008.Thereaction tothisthreatenedtsunamiwastheEU750billionbailout,whichtooktheGermangovernmentbysurprise, andthesubsequentECBbuy-upoftoxicstatedebts.

Sitting on a Volcano
The EU Commissioner for Competition, Joaqun Alumnia,nowwarns,inaninterviewwiththeFrankfurter Allgemeine Zeitung,thatgovernmentsaregoing tobeconfrontedwithnewbankingturbulence,ledby thecasesofGreeceandSpain,andthattheECBwill havetobuyupacoupleofhundredbillioneurosmore inthesovereigndebtsofthesouthernstates.TheEuropeanbankswillhavetorefinanceaboutEU2trillionby 2012,hesays.Asenormousastheseadmissionsare,the truthisevenmoredramatic:Wearesittingontopofa volcanojustbeforeiterupts.
June25,2010 EIR

Some brave individualstoo feware speaking out against the disastrous trend, such as the former chairoftheCounciloftheEvangelicalChurch,Margot Kssman,whocalledonthechurchestoresistcutsin benefits to parents who are recipients of the Hartz 4 welfarefundsfortheirchildren.SocialDemocraticpolitical figure Gesine Schwan was very much in tune withthepopularmood,when,atamemorialinhonor oftheJune17,1953uprisinginEastGermany(which wascrushedbytheSovietUnion),shedrewaparallel tothesituationtoday,indicatingthatthepopulationis gripped by feelings of impotence and injustice. The criticismofSchwansspeechbyArnoldVaatz,deputy chair of the Christian Democratic parliamentary caucusinwhichhebrandishedtheclubofpolitical correctness, saying that such a comparison is absolutely unacceptableis unfortunately typical of the callousnessinGermanytoday.Ourcountryisgoing toHell,andallthosewhoarepoliticallycorrectare complicit. Isthiscomparisonreallysofar-fetched,whenBarrosoistalkingaboutApocalypseandcivilwar?When the third European Police Forces Training exercises tookplaceinLehnin,inwhich320policemenfrom16 EU countries trained in counterinsurgency at one levelbelowopenwarfare?Andwhenthereisanattempt tosneakinahybridformbetweenmilitaryandpolice
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forces,violatingGermanysconstitutionallymandated separationofthemilitaryandpolice,bythecreationof aGermanGendarmerie?Furthermore,theEUhaslong had maps identifying the regions and city neighborhoods throughout Europe where social problems are expected. Merkelcomplainedrecentlythatthejobofanhonest advisoronthefinancialsystemwasstillavailable.That shouldbetakencareof.

War with the British Empire

The main problem is a relentless war which the modernformoftheBritishEmpire,nowrepresentedby thefinancialinterestsoftheCityofLondonanditssubdivision, Wall Street, are waging against sovereign nation-states, as the only entities that can defend the commongood,especiallyintimesofcrisis. In1984,theinvestmentbankJPMorgan,whichis definitelypartofthisempire,andwhosedirectoratthat timewasAlanGreenspan,preparedapamphletattackingtheGlass-Steagalllaw(seearticle,p.4);atabout thesametime,theBritonBaronCockfieldwasgetting readytobringtheEuropeancontinentundersubjugation by the supranational and ultimately British-controlledEuropeanMonetaryUnion.InhisWhitePaper entitled1992,Cockfieldoutlinedtheplanfortheprocess that led to the EU treaties from Maastricht to Lisbon,aswellastherepeal,after1992,of80lawsand regulationsthathadgovernedGermanbanking,which thenallowedtheunregulatedoperationsofthefinancial locustsandmega-speculators. Theeurowasnotinventedbysomeonefromcontinental Europe, but by that same Baron Cockfield, whofrom1979-82wasMinisterofStateattheTreasuryintheThatchergovernment,andlatervicepresident of the European Commission under Jacques Delors.Cockfieldisactuallyconsideredthefatherof Maastricht. Kohlsgirl[AngelaMerkel]shouldsomedayask Helmut Kohl whether he still remembers Thatchers FourthReichcampaignagainsthimandGermanreunification, and the threats by Franois Mitterrand againstGermanyatthattime.Kohlhasoftensaidthat heknewthattheEuropeanMonetaryUnioncouldnot functionwithoutpoliticalunion;Germanywassimply blackmailed and overwhelmed, forced to give up the deutschemarkandacceptthehatedeuro.Thepromise thattheeurowouldbeasstableastheD-markwasa joke.AndthefactthatGermanywouldbecomethepay30 Economics

master for all of Europe, was not in the instruction manualforthissham. MargaretThatcherisalsotheoriginoftodaysclich thatthereisnoalternativetosuch-and-suchapolicy, asMerkelsays,andthefouradvisors,includingOxford professorClemensFuest,chiefoftheScientificAdvisory Board at the Finance Ministry, and Professor Unsinn1fromtheIFOInstitute,withtheirTenRules fortheRescueoftheEuro,ahodge-podgefromthe monetaristchamberofhorrors. There is a very simple alternative: We must stop using taxpayers money to refinance the banks completelyworthlesstoxicwaste.Sinceitisnotrealisticto reintroducethe80lawsandregulationsthathavebeen abolished since 1992, given the dramatic shortage of time,weneedtheimmediateestablishmentofatwotierbankingsystem.Thestatemustprovidethecommercialbankswithcreditlines,sothatloanscanbeextended to industry, agriculture, trade, and other areas thatservethecommongood.Iftheinvestmentbanks wanttogamble,itistheythemselvesthatshouldpay forthedamage,notthetaxpayers. Ifwewanttopreventthiscrisisfromquicklydevelopingintotheworstcrisisinthehistoryofmankind,we nowneedaradicalchange.Wehavetostopallowing Britishlawfirmsandconsultingcompaniestomakeour lawsforus.Wemustreturntotheprinciplesthatformed thefoundationforGermanyasanindustrialnationand socialcommunity.Weneedapolicyofgrowth,investmentininfrastructure,andscientificandtechnological progressatthehighestlevel. Therefore,itistimetovoteoutthepartieswhose politicalleadersareinarevolving-doorwiththefinancialsector,servinginhighofficeandthenbeingtransferredbackagain. AndwedontwantFrauSchwantoberightwithher comparisonto1953,becausethatdatestandsforatragedyinGermanhistory. Letsbringtolifeadifferentdate:1989!Wearethe people! ThefinancialinstitutionsaretheHoneckers2ofthat time. Wearethepeople!
1. Hans-WernerSinnistheheadoftheInstituteforEconomicResearch atMunichUniversity;thepunonhisnamecouldbetranslatedasProfessorPoppycock. 2. ErichHoneckerwastherulerofcommunistEastGermany,famous forhisclaimshortlybeforehisousterin1989thattheBerlinWall wouldlastforathousandyears.

EIR June25,2010