Bailout or Bail-in:
The Queen’s Policy Is Genocide
by Dennis Small
12 Strategy EIR June 7, 2013
June 7, 2013 EIR Strategy 11
June 3—Those who doubt that the current policy of
the G20 nations, adopted in April 2009, and being
carried out through the European Union and the
Dodd-Frank bill in the United States, is genocide, need
only look at the magnitude of the numbers. Through
their commitment to save “financial stability” by rescuing
any troubled Global Systemically Important Financial
Institutions (G-SIFIs), these agents of the
global financial empire are committed to preserving
the claims of speculators that amount to the range of
over $1.6 quadrillion. Yet even if the full powers of
government bailouts and depositor bail-ins were exercised,
the loot would amount to no more than 1% of
that amount.
By putting the priority on saving the major international
predator banks, and their holdings of cancerous
financial derivatives, the global system is not going to
make any institution “solvent.” Rather, it is simply
going to sacrifice millions, or billions, of lives—in the
same way that genocide is already being carried out
through the shutdown of the Greek economy, and cuts in
services there.
Lyndon LaRouche said this was going to happen.
The debt being generated by the global speculative
money system can never be paid, and should never be
paid. However, the efforts to save the banking institutions
will fulfill the intention of the current heirs of the
Roman Empire: to reduce the world’s population to a
“sustainable” size—the size by which they believe they
can sustain their empire, approximately 1 billion.
Last week, EIR looked in detail at the mechanisms
that have been put into U.S. law to carry out this objective.
This week, we step back to review the global picture,
where the intention is even clearer.
LaRouche Warned
When the international financial bubble exploded
in 2007 and 2008, two highly significant things happened.
First, Lyndon LaRouche, who had forecast that
this financial explosion would occur weeks before it
actually occurred—he spoke of this on July 25, 2007—
when the visible explosion occurred in 2008, said that
there had to be a bankruptcy reorganization of the
entire international financial system, which had entered
into a breakdown crisis of the existing system.
And that this reorganization had to include the restoration
of the 1933 Glass-Steagall Act of President Franklin
Delano Roosevelt.
LaRouche’s warnings and recommendations were
disregarded, and what happened instead, was that, in
the international financial centers whose headquarters
are in the City of London, with branch offices on Wall
Street, it was decided that they would bail out the speculative
cancer instead. Logical enough, since they are
the owners of that cancer. It’s sort of like going to a
doctor when you have an oncological problem, and realizing
that the “doctor” sitting behind the desk is the
cancer itself.
So what the international financial centers did as a
matter of policy, beginning in 2008, was to first carry
out a series of financial bailouts of astounding proportions.
For starters, so-called “quantitative easing” from
2008 to 2012 added up to some $4.5 trillion in bailouts,
as can be seen in Figure 1.
But that’s not all. Moving forward, the prescription
issued by Dr. Cancer is to keep feeding the
cancer, to keep going with quantitative easing, only
now at a rate that is going to reach the level—based
on what is already being done by the U.S. Federal Reserve,
the European Central Bank, the Bank of England,
and the Bank of Japan—of about $11 trillion of
purely speculative quantitative easing by the end of
2014.
And of course, at the same time, they are imposing
dramatic austerity and cuts in living standards and state
budgets of the countries that are part of the trans-Atlantic
financial sector. So that’s $11 trillion by the end of
2014.
Add the Bail-In
But even that wasn’t enough. Back in 2009 or so, the
same owners of the cancer realized that this wasn’t sufficient,
that it wasn’t going to do the trick, and they
began to activate what is now known by the quaint
name of, not “bailout,” but “bail-in.”
The policy direction for this operation of so-called
bail-ins comes directly from the Queen of England. It
comes from the British Commonwealth, and it was imposed
on the Group of 20 nations at the infamous G20
meeting held in London in 2009, the first attended by
Barack Obama. Such a bail-in was then
carried out in the case of Cyprus, and it
became known as the “Cyprus template.”
What does “bail-in” mean? The
bottom line is that it means outright
armed robbery against the deposits of
account holders in the banks. They are
called “unsecured creditors,” and they
are the ones who were virtually expropriated
in Cyprus, by order to the EU.
Now the EU has imposed the same
thing that they did in Cyprus by tricking
people in Spain, such as in the case
of Bankia bank and others, to trade in
their deposits in exchange for socalled
preferentes—stocks in the
bank. And then it turned out that
people had become owners of a bank which,
suddenly, was worth absolutely nothing,
and they lost everything (see following article).
The bail-in policy of the Queen of England
and her friends on Wall Street and the
City of London, is the Cyprus template applied
to the entire planet. And it is the existing
policy in the United States, as codified in
the Dodd-Frank Act; it is the existing policy
in Europe, with laws that are in the process of
being adopted by the European Parliament,
and what the IMF, the European Commission,
and the ECB—the infamous Troika—
are implementing.
The amount of money that they intend to
steal through bail-ins would add another $7
trillion, on top of the $11 trillion of purely
speculative quantitative easing. So we are
talking about a total, therefore, by the end of 2014, of
some $18 trillion in pure speculative robbery, in order
to feed the cancer.
Question: Is it going to work?
Answer: Of course not!
Look at It from the Top
Because the total amount of world financial aggregates,
the size of the entire cancer, is, according to
EIR’s best estimates, about $1.6 quadrillion. As you
can see in Figure 2, if you look at the total financial
FIGURE 3
World Financial Aggregates
(quadrillions of dollars)
FIGURE 1
Hyperinflation Run Amok
(trillions of dollars, cumulative change)
June 7, 2013 EIR Strategy 13
aggregates, the components of stocks, and of public,
private, foreign, and domestic debts, as large as they
are, are only some $200 trillion—nothing, compared
to the derivatives, the speculative instruments which
comprise about 90% of all world financial aggregates.
Now, $1.6 quadrillion is 100 times larger than
the total amount of bailouts and bail-ins combined. A
bailout/bail-in involving just 1% of the total size of
the financial bubble is absurd. It is not going to work.
It cannot work. This system is coming down, like it
or not. So the policy doesn’t work for an actual bailout.
But what it does work for—and this is the intentional
policy of the British monarchy and its friends
on Wall Street and the City of London—is to kill
people. Because in addition to the financial looting,
what is going on to try to maintain this bubble, is a
drastic reduction in the level of employment, in the
standard of living, in the very existence of the population.
What it has worked for, and it has worked very
well indeed, is to turn Europe into the equivalent of
the concentration camps of Nazi Germany, which
were also imposed thanks to British financial interests.
One of the indicators or markers of this process, as
those of you here know very well, is the level of unemployment,
and especially youth unemployment.
Because a nation that does not have productive employment,
that does not have a mission, that does not
have a future for its youth, itself has no
future and has been bestialized. And
what we have seen is that, during this
same period, from 2008 to 2012, while
the quantitative easing was going on,
youth unemployment in Europe has basically
doubled, from about 20 to 40%
(Figure 3). Greece has already exceeded
60% youth unemployment, and
Spain is rapidly approaching that level
of 60%.
This is unacceptable. This is inhuman.
This is a concentration camp. And
it is the future that awaits us all under
this system, if we don’t change it.
What Must Be Done
Now, it can be changed, it must be
changed, and for many years LaRouche has not only
forecast this disintegration, he has also indicated what
the solution is.
FIGURE 3
Youth Unemployment in Europe
Which Are the Banks the
Empire Wants To Save?
Just which are the banks that the Empire’s servants
in the G20 and elsewhere want to save, at the cost
of your money and your life? They are the “Global
Systemically Important Financial Institutions” (GSIFIs),
which produce the quadrillions in derivatives
and other unpayable financial instruments
that Glass-Steagall would wipe off the map.
Here is the list, as of November 2012, according
to the Financial Stability Board:
Citigroup, Deutsche Bank, HSBC, JPMorgan
Chase, Barclays, BNP Paribas, Bank of America,
Bank of New York Mellon, Crédit Suisse, Goldman
Sachs, Mitsubishi UFJ FG, Morgan Stanley, Royal
Bank of Scotland, UBS, Bank of China, BBVA,
Groupe BPCE, Group Crédit Agricole, ING Bank,
Mizuho FG, Nordea, Santander, Société Générale,
Standard Chartered, State Street, Sumitomo Mitsui
FG, Unicredit Group, Wells Fargo.
14 Strategy EIR June 7, 2013
What has to be done, both in the United States and
internationally, is to adopt the equivalent of Franklin
Roosevelt’s Glass-Steagall law: an absolute, total separation
between productive, commercial banking, on
the one hand, and speculative investment banking, on
the other. Just as was done under the Glass-Steagall
law: total separation. The part involving the illegitimate
speculative debt—too bad—they can fend for
themselves, but they will stop stealing money from
government budgets, and they will stop destroying
the labor force. That part will simply be sunk: it won’t
be paid, it is illegitimate debt—bankruptcy reorganization.
But, in addition to Glass-Steagall, other measures
are required. In the case of Spain and other European
countries, these include:
Exit the euro. The euro system is a system of destruction
and nothing more. The euro is finished. So we
have to leave the euro and return to national currencies,
whose exchange rates with other currencies are defended
from financial warfare with protectionist measures,
such as exchange controls, capital controls, and
so forth.
So: number one, Glass-Steagall.
Number two, leave the euro and return to national
currencies.
Number three, each nation must establish a
state-run National Bank, along the lines prescribed
by Alexander Hamilton, in order to issue productive
credit for activities which yield high-technology employment.
Under such directed credit, there can be a
private banking sector—fine. But it cannot be parasitical;
it has to participate in this project. And this
means advanced technologies, such as nuclear
energy. None of this anti-scientific foolishness—and
it is that—such as solar and wind energy, and so
forth.
International agreements must also be reached
with sovereign nations that will also have left the euro,
to establish a new international economic order based
on fixed exchange rates, protected by exchange controls.
For what? For using a credit system to launch
great infrastructure projects on a world scale, which
are needed to develop productivity in each and every
nation.
These are the choices we face. There is no third way.
Either we choose the path of Glass-Steagall and a credit
system, to sink the British Queen, the City of London,
and Wall Street; or we are going to end up, as happened
in the 1930s, with concentration camps such as we are
already seeing in the nations of Europe—economic
concentration camps where there is no future for our
youth. Those are your options.
This article was adapted from a speech delivered June
2 by video to a Barcelona seminar organized by journalist
Daniel Estulin on “World Government and the
Bilderberg Club.” The seminar also saw video presentations
by Lyndon and Helga LaRouche.
The Queen’s Policy Is Genocide
by Dennis Small
12 Strategy EIR June 7, 2013
June 7, 2013 EIR Strategy 11
June 3—Those who doubt that the current policy of
the G20 nations, adopted in April 2009, and being
carried out through the European Union and the
Dodd-Frank bill in the United States, is genocide, need
only look at the magnitude of the numbers. Through
their commitment to save “financial stability” by rescuing
any troubled Global Systemically Important Financial
Institutions (G-SIFIs), these agents of the
global financial empire are committed to preserving
the claims of speculators that amount to the range of
over $1.6 quadrillion. Yet even if the full powers of
government bailouts and depositor bail-ins were exercised,
the loot would amount to no more than 1% of
that amount.
By putting the priority on saving the major international
predator banks, and their holdings of cancerous
financial derivatives, the global system is not going to
make any institution “solvent.” Rather, it is simply
going to sacrifice millions, or billions, of lives—in the
same way that genocide is already being carried out
through the shutdown of the Greek economy, and cuts in
services there.
Lyndon LaRouche said this was going to happen.
The debt being generated by the global speculative
money system can never be paid, and should never be
paid. However, the efforts to save the banking institutions
will fulfill the intention of the current heirs of the
Roman Empire: to reduce the world’s population to a
“sustainable” size—the size by which they believe they
can sustain their empire, approximately 1 billion.
Last week, EIR looked in detail at the mechanisms
that have been put into U.S. law to carry out this objective.
This week, we step back to review the global picture,
where the intention is even clearer.
LaRouche Warned
When the international financial bubble exploded
in 2007 and 2008, two highly significant things happened.
First, Lyndon LaRouche, who had forecast that
this financial explosion would occur weeks before it
actually occurred—he spoke of this on July 25, 2007—
when the visible explosion occurred in 2008, said that
there had to be a bankruptcy reorganization of the
entire international financial system, which had entered
into a breakdown crisis of the existing system.
And that this reorganization had to include the restoration
of the 1933 Glass-Steagall Act of President Franklin
Delano Roosevelt.
LaRouche’s warnings and recommendations were
disregarded, and what happened instead, was that, in
the international financial centers whose headquarters
are in the City of London, with branch offices on Wall
Street, it was decided that they would bail out the speculative
cancer instead. Logical enough, since they are
the owners of that cancer. It’s sort of like going to a
doctor when you have an oncological problem, and realizing
that the “doctor” sitting behind the desk is the
cancer itself.
So what the international financial centers did as a
matter of policy, beginning in 2008, was to first carry
out a series of financial bailouts of astounding proportions.
For starters, so-called “quantitative easing” from
2008 to 2012 added up to some $4.5 trillion in bailouts,
as can be seen in Figure 1.
But that’s not all. Moving forward, the prescription
issued by Dr. Cancer is to keep feeding the
cancer, to keep going with quantitative easing, only
now at a rate that is going to reach the level—based
on what is already being done by the U.S. Federal Reserve,
the European Central Bank, the Bank of England,
and the Bank of Japan—of about $11 trillion of
purely speculative quantitative easing by the end of
2014.
And of course, at the same time, they are imposing
dramatic austerity and cuts in living standards and state
budgets of the countries that are part of the trans-Atlantic
financial sector. So that’s $11 trillion by the end of
2014.
Add the Bail-In
But even that wasn’t enough. Back in 2009 or so, the
same owners of the cancer realized that this wasn’t sufficient,
that it wasn’t going to do the trick, and they
began to activate what is now known by the quaint
name of, not “bailout,” but “bail-in.”
The policy direction for this operation of so-called
bail-ins comes directly from the Queen of England. It
comes from the British Commonwealth, and it was imposed
on the Group of 20 nations at the infamous G20
meeting held in London in 2009, the first attended by
Barack Obama. Such a bail-in was then
carried out in the case of Cyprus, and it
became known as the “Cyprus template.”
What does “bail-in” mean? The
bottom line is that it means outright
armed robbery against the deposits of
account holders in the banks. They are
called “unsecured creditors,” and they
are the ones who were virtually expropriated
in Cyprus, by order to the EU.
Now the EU has imposed the same
thing that they did in Cyprus by tricking
people in Spain, such as in the case
of Bankia bank and others, to trade in
their deposits in exchange for socalled
preferentes—stocks in the
bank. And then it turned out that
people had become owners of a bank which,
suddenly, was worth absolutely nothing,
and they lost everything (see following article).
The bail-in policy of the Queen of England
and her friends on Wall Street and the
City of London, is the Cyprus template applied
to the entire planet. And it is the existing
policy in the United States, as codified in
the Dodd-Frank Act; it is the existing policy
in Europe, with laws that are in the process of
being adopted by the European Parliament,
and what the IMF, the European Commission,
and the ECB—the infamous Troika—
are implementing.
The amount of money that they intend to
steal through bail-ins would add another $7
trillion, on top of the $11 trillion of purely
speculative quantitative easing. So we are
talking about a total, therefore, by the end of 2014, of
some $18 trillion in pure speculative robbery, in order
to feed the cancer.
Question: Is it going to work?
Answer: Of course not!
Look at It from the Top
Because the total amount of world financial aggregates,
the size of the entire cancer, is, according to
EIR’s best estimates, about $1.6 quadrillion. As you
can see in Figure 2, if you look at the total financial
FIGURE 3
World Financial Aggregates
(quadrillions of dollars)
FIGURE 1
Hyperinflation Run Amok
(trillions of dollars, cumulative change)
June 7, 2013 EIR Strategy 13
aggregates, the components of stocks, and of public,
private, foreign, and domestic debts, as large as they
are, are only some $200 trillion—nothing, compared
to the derivatives, the speculative instruments which
comprise about 90% of all world financial aggregates.
Now, $1.6 quadrillion is 100 times larger than
the total amount of bailouts and bail-ins combined. A
bailout/bail-in involving just 1% of the total size of
the financial bubble is absurd. It is not going to work.
It cannot work. This system is coming down, like it
or not. So the policy doesn’t work for an actual bailout.
But what it does work for—and this is the intentional
policy of the British monarchy and its friends
on Wall Street and the City of London—is to kill
people. Because in addition to the financial looting,
what is going on to try to maintain this bubble, is a
drastic reduction in the level of employment, in the
standard of living, in the very existence of the population.
What it has worked for, and it has worked very
well indeed, is to turn Europe into the equivalent of
the concentration camps of Nazi Germany, which
were also imposed thanks to British financial interests.
One of the indicators or markers of this process, as
those of you here know very well, is the level of unemployment,
and especially youth unemployment.
Because a nation that does not have productive employment,
that does not have a mission, that does not
have a future for its youth, itself has no
future and has been bestialized. And
what we have seen is that, during this
same period, from 2008 to 2012, while
the quantitative easing was going on,
youth unemployment in Europe has basically
doubled, from about 20 to 40%
(Figure 3). Greece has already exceeded
60% youth unemployment, and
Spain is rapidly approaching that level
of 60%.
This is unacceptable. This is inhuman.
This is a concentration camp. And
it is the future that awaits us all under
this system, if we don’t change it.
What Must Be Done
Now, it can be changed, it must be
changed, and for many years LaRouche has not only
forecast this disintegration, he has also indicated what
the solution is.
FIGURE 3
Youth Unemployment in Europe
Which Are the Banks the
Empire Wants To Save?
Just which are the banks that the Empire’s servants
in the G20 and elsewhere want to save, at the cost
of your money and your life? They are the “Global
Systemically Important Financial Institutions” (GSIFIs),
which produce the quadrillions in derivatives
and other unpayable financial instruments
that Glass-Steagall would wipe off the map.
Here is the list, as of November 2012, according
to the Financial Stability Board:
Citigroup, Deutsche Bank, HSBC, JPMorgan
Chase, Barclays, BNP Paribas, Bank of America,
Bank of New York Mellon, Crédit Suisse, Goldman
Sachs, Mitsubishi UFJ FG, Morgan Stanley, Royal
Bank of Scotland, UBS, Bank of China, BBVA,
Groupe BPCE, Group Crédit Agricole, ING Bank,
Mizuho FG, Nordea, Santander, Société Générale,
Standard Chartered, State Street, Sumitomo Mitsui
FG, Unicredit Group, Wells Fargo.
14 Strategy EIR June 7, 2013
What has to be done, both in the United States and
internationally, is to adopt the equivalent of Franklin
Roosevelt’s Glass-Steagall law: an absolute, total separation
between productive, commercial banking, on
the one hand, and speculative investment banking, on
the other. Just as was done under the Glass-Steagall
law: total separation. The part involving the illegitimate
speculative debt—too bad—they can fend for
themselves, but they will stop stealing money from
government budgets, and they will stop destroying
the labor force. That part will simply be sunk: it won’t
be paid, it is illegitimate debt—bankruptcy reorganization.
But, in addition to Glass-Steagall, other measures
are required. In the case of Spain and other European
countries, these include:
Exit the euro. The euro system is a system of destruction
and nothing more. The euro is finished. So we
have to leave the euro and return to national currencies,
whose exchange rates with other currencies are defended
from financial warfare with protectionist measures,
such as exchange controls, capital controls, and
so forth.
So: number one, Glass-Steagall.
Number two, leave the euro and return to national
currencies.
Number three, each nation must establish a
state-run National Bank, along the lines prescribed
by Alexander Hamilton, in order to issue productive
credit for activities which yield high-technology employment.
Under such directed credit, there can be a
private banking sector—fine. But it cannot be parasitical;
it has to participate in this project. And this
means advanced technologies, such as nuclear
energy. None of this anti-scientific foolishness—and
it is that—such as solar and wind energy, and so
forth.
International agreements must also be reached
with sovereign nations that will also have left the euro,
to establish a new international economic order based
on fixed exchange rates, protected by exchange controls.
For what? For using a credit system to launch
great infrastructure projects on a world scale, which
are needed to develop productivity in each and every
nation.
These are the choices we face. There is no third way.
Either we choose the path of Glass-Steagall and a credit
system, to sink the British Queen, the City of London,
and Wall Street; or we are going to end up, as happened
in the 1930s, with concentration camps such as we are
already seeing in the nations of Europe—economic
concentration camps where there is no future for our
youth. Those are your options.
This article was adapted from a speech delivered June
2 by video to a Barcelona seminar organized by journalist
Daniel Estulin on “World Government and the
Bilderberg Club.” The seminar also saw video presentations
by Lyndon and Helga LaRouche.
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