Petition to President Donald Trump
The White House
1600 Pennsylvania Avenue, N.W.
Washington, DC 20500
Lyndon LaRouche has stated that with respect to the ongoing fraudulent Russiagate scandal directed at President Trump, “The American people must demand that the ongoing treasonous British coup against the Presidency, and the nation itself, be stopped and the perpetrators prosecuted and imprisoned.” We, the undersigned, agree with that statement and the following:
- The Veteran Intelligence Professionals for Sanity (VIPS) has presented evidence to President Trump that Russia never hacked the Democratic National Committee. The emails in question were leaked by an insider, not hacked, and were subsequently altered to attribute responsibility to Russia. A new special prosecutor should be appointed to investigate those responsible for perpetrating the resulting hoax which has so damaged and divided our entire nation.
- There is abundant evidence in the record showing that British institutions and agencies conducted a concerted attack on candidate and now President Donald Trump in order to influence and then reverse the U.S. election result. The actions of “former” MI6 agent Christopher Steele and his firm Orbis Business Intelligence—involved in creating false and salacious accusations against the president after being paid over $1,000,000 by supporters of Hillary Clinton—are fruitful targets for investigation, as are actions of GCHQ (the British NSA). If British interference is shown by a new special prosecutor’s investigation, the “special relationship” between the United States and Great Britain should be cancelled in all respects.
In the words of LaRouche, “Cancel the British system. Save the people.” Printable version of petition.
Alicia Cerretani published EIR Testimony on Maryland House Resolution HJ4 moving Congress To Restore the Glass-Steagall Act in Report Back 2017-03-13 12:47:13 -0400
Testimony of Paul Gallagher, Executive Intelligence Review Economics Co-Editor
March 3, 2017
Committee Chair and Delegates,
Thank you very much for holding today's hearing on the resolution to the U.S. Congress to restore the Glass-Steagall Act separating commercial bank units from all other types of financial institutions, and limiting FDIC insurance to those units.
Glass-Steagall restoration legislation in the U.S. House of Representatives, H.R.790, the Return to Prudent Banking Act of 2017, was introduced Feb. 1 by Republican Walter Jones of North Carolina and Democrats Marcy Kaptur and Tim Ryan of Ohio and Tulsi Gabbard of Hawaii. It has grown to 32 cosponsors, and needs support. Twelve state legislatures are now considering resolutions supporting this legislation.
If Glass-Steagall is not restored now, the next large bank — or non-bank — financial failure will again topple the banking system and trigger both new bailouts and confiscation of bondholders and depositors in the form of bail-in. U.S.-based large bank holding companies have $2 trillion in exposure to European megabanks, which are full of non-performing loans and have not had a single profitable year since the 2008 crash despite hundreds of billions in bailouts and trillions in bond purchases by the European Central Bank.
And if Glass-Steagall separation is not restored now, the largest U.S. bank holding companies — which dominate the banking system to the extent of 60-70% of deposits and assets — will continue to limit lending, in practice, to the large corporate bond issuers and borrowers, shutting out technologically progressive SMEs from credit.
JP MorganChase had $837 billion in loans/leases outstanding at Dec. 31, 2015, just 65.1% of its deposits of $1.279 trillion. Citigroup had $604,991 billion in loans/leases at the same date, just 66.8% of its deposits. But the entire U.S. commercial banking system has loans/leases outstanding equal to 79.2% of deposits according to the Federal Reserve's flow-of-funds report. Since the six largest banks hold more than half of all deposits, the comparative ratio for the nation's 6,000 community banks and regionals clearly must be in the range of 90%-plus loans/leases to deposits. The biggest banks' loan ratios are very low indeed; they both hurt the economy, and demonstrate the great degree to which households and businesses deposits are being used for securities and derivatives speculation.
But since the 2008 crash, the biggest 12 banks have largely absorbed the deposits and assets of some 2,000 small banks which have disappeared — one quarter of all the commercial banks which existed in the United States a decade ago.
The largest bank holding companies changed dramatically from 1995 the point at which Glass-Steagall enforcement had effectively ceased — through the 2007-08 crash. This was studied and effectively described already in a 2011 study by the New York Federal Reserve, entitled "Peeling the Onion: The Structure of Large Bank Holding Companies." These giants became impossibly complex, morphing from 1-200 subsidiaries typically in 1995 to 3,000 or more units per megabank in 2011. They became giants dominating the assets and deposits of the entire U.S. banking system for the first time in U.S. history. They shifted their huge and growing deposit bases from lending toward supporting securities trading units, derivatives trades, etc. Derivatives markets exploded ten times in size in ten years 1997-2007.
Already in 1998-99 the failure of a single hedge fund called Long Term Capital Management was admitted to have nearly caused a global bank panic, because 55 U.S. and European banks, through leveraged loans, were into LTCM's immensely risky derivatives trading. By 2008 Lehman Brothers and other investment banks, insurance companies and hedge funds were in the same blowout event condition.
Today, a media report March 2 identified $321 billion in fines which the world's biggest banks have had to pay since the 2008 crash, for illegal and/or immoral activities which they continue to commit up to the present. The dominant character of these violations of banking law and practice is the use of the very large deposit bases of these banks, to support speculative units, securitization of investments, and derivatives bets. The currently very public Wells Fargo mis-selling scandal is emblematic of this.
If the Glass-Steagall Act is restored by Congress now, financial failures will take down only individual financial institutions, as when important investment banks like Drexel Burnham Lambert and Solomon Brothers failed under Glass-Steagall enforcement without affecting the rest of the banking system. U.S. branches of the biggest European universal banks, which absorbed great volumes of taxpayer bailout loans and recapitalizations, will have to recharter themselves completely independently if they are to operate in the United States at all. But in fact, Glass-Steagall restoration in the United States is likely to be followed more or less immediately in Europe, where many nations have already had Glass-Steagall bank separation legislation introduced.
And if Glass-Steagall is restored by Congress now, even as large holding companies are divesting securities units, their commercial banking units will necessarily be in the business of lending to businesses and households, aside from holdings of Federal and municipal bonds. The common Wall Street argument against Glass-Steagall — that it will reduce bank lending or damage the capital market — is the opposite of the truth. As FDIC vice-chair Thomas Hoenig has frequently argued in recent years, the United States capital markets were the deepest and most reliable in the world in the decades when commercial banking and securities trading were separated and the Federal safety net protected only the former.
If a national bank for great infrastructure projects is established, it will need a system of private commercial banks lending on good terms to its contractors. Glass-Steagall will make lending those banks business again.
Executive Intelligence Review believes that restoring Glass-Steagall is the initiating action of four laws Congress should take. It should lead to a national Hamiltonian credit institutions for trillions in infrastructure investments; to an accelerated return to manned space exploration and to rapid development of fusion power and plasma technologies.
Thank you again for debating this crucial subject.
President Donald Trump and the 115th Congress must implement LaRouche's Four Laws for an economic recovery and join China's New Silk Road program for global cooperation and 'win-win' economic development.
Our goal is 50,000 Signatures. We'll deliver them to Congress when we reach 10k, 25k and 50k signatures!
To: President Trump and Members of Congress
We, the undersigned, recognize that the transatlantic financial system is on the verge of a new blowout, worse than that of 2007-2008. The conditions of life for the vast majority of Americans have been steadily collapsing over the past two decades. U.S. economic policy has focused on protecting Wall Street’s speculative bubble, instead of protecting the general welfare and future posterity of the American people. We recognize that emergency action is now needed to preempt a new financial crisis, and to put Americans back to work rebuilding our nation and our future.
To accomplish this, we ask President Donald Trump and the 115th Congress to pass and implement LaRouche’s Four Laws program for economic recovery on an emergency basis, and to join China’s New Silk Road program for global cooperation in large-scale infrastructure projects and economic development.
The Four Laws define a coherent economic recovery program, rooted in the American System of economics:
1. Reinstate Franklin Roosevelt’s original Glass-Steagall law, separating commercial lending activities from Wall Street speculation
2. Return to a Hamiltonian system of national banking
3. Direct federal credit to projects and initiatives which create rising levels of productivity and incomes
4. Launch a crash program for the development of fusion power and the rapid expansion of our space program.
The American economic recovery will be greatly accelerated if the United States joins the global infrastructure and economic development renaissance flowing from China’s New Silk Road program.
A PDF of this petition is available here.
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Alicia Cerretani published LPAC Confronts Minnesota Senator Franken at campaign event in Report Back 2016-10-24 11:46:11 -0400
Kevin E., an LPAC activist in St. Paul, MN, sent in this report of his intervention at a campaign event for Minnesota state legislators in Eagan, MN, attended by US Senator Al Franken. The event was attended by about 30-40 people. Kevin reported that Franken went on and on about how bad the Republicans were, until Kevin decided to break the monotony and interrupt his speech, asking him, "What about Obama? You complain about the Republicans, yet Obama is the one who wants to go to war with Russia and China over Syria, not to mention the fact that he just bragged about stopping Glass-Steagall in a recent Economist article." Franken did not respond, other than to say that they could discuss it later during the Q&A session, which they did.Read more