The Cyprus policy - simply stealing bank deposits
to bail out bankrupt banks - is not limited to Cyprus. Public announcements
and our own research show that this is the plan for the entirety of Europe and
of the United States - and the world. It is already in place in New Zealand, for
example. Even since the following report was given, we have learned that
the Dodd-Frank plan, which is already U.S. law, contains provisions for
precisely this kind of grand theft of private bank accounts, to "save
systemically significant banks."
Absolutely nothing short of
the full Glass Steagall, to write off the worthless speculative portion of the
debt bubble, can prevent these massive crimes, and the wars they will
provoke. This transcript appears in the April 5, 2013 issue
of Executive Intelligence Review.
Mike Billington
The Cyprus Template:
Your Money And Your Life
by Dennis
Small
[PDF
version of this transcript]
April 2—As
the story of the Cyprus template for world financial reorganization unfolds, it
is becoming clear that the British Empire's policy is, "Your money and
your life."
What's going
on in the case of the recent developments is that The Great Cyprus Bank Heist,
where the entire banking sector of Cyprus has in fact been frozen—there is a
100% freeze on liquidity—is not something that was done by the European
Commission, the European Central Bank, and the International Monetary Fund, the
well-known and well-despised Troika, as a response to the crisis in Cyprus.
That's nonsense. This was something that was long planned, and goes back,
minimally, to a December 2012 planning document, jointly issued by the Bank of
England (BOE) and the Federal Deposit Insurance Corporation (FDIC) of the United
States, working with input of the Federal Reserve system of the United
States.
In fact, it
goes back, according to the best evidence that we have in hand so far, to
planning documents issued six months earlier than that, by the European Union.
That's as far back as we have it at this point, of the black-and-white check
stubs-in-hand evidence, of the planning that is going on for global seizure of
your money, and your life, by the British Empire, to try to salvage
their completely bankrupt and unsalvagable financial system, and implement their
stated policy of intentional genocide and depopulation.
There is
legislation that is planned; it is so stated by the European Union. There are
documents being presented to the European Parliament, and to the nations
involved. And there is also existing legislation in the United States, including
the notorious Dodd-Frank bill; and there is additional legislation planned,
which is designed to bring about this great global bank heist.
Now, leaving
all of the specific facts aside for the moment—and we will go through some of
these facts—it was clearly evident, going back quite some time, that this policy
was in fact the intention of the British Empire, even before it had
stated that it was their intention. The fact of the matter is, that, as Lyndon
LaRouche has repeatedly noted, it is intention that is the causal
guiding force, not only in human history, and in the economy, but in the
physical universe as well. And this is a lesson, a deeper, more profound lesson
to be learned, from the current scandal underway.
Now,
regarding the latest developments: yesterday, March 31—I'm speaking to you today
on April 1—Lyndon LaRouche commented that what is now going on involves a crime
so great that the people responsible, in particular, your Congressman, your
Senators, will be held accountable. Lyndon LaRouche said, and I
quote:
"The
enactment of such a provision, now, would be, in effect, an act of treason
against the United States, because it means the destruction of the United
States. And the members of the Senate, or other bodies, which go for this, are
guilty, in terms of intention, of treason, of a treasonous action. Not to
support Glass-Steagall
is already tantamount to treason, because only the Glass-Steagall Act would
save the United States from collapse. We don't need to save any of the big
banks. They go down, they go down. We save the nation."
You Can't Get Your
Money
Now, let's
review what is underway at this point, to survey the battlefield as of this
moment.
In Cyprus, in
the course of last week, the authorities of the European Union and the Cypriot
government announced what they would be doing with the largest banks, including
the Bank of Cyprus, under the bail-out regimen being implemented, or what
they're calling the "bail-in" mechanism. Thirty-seven and a half percent of all
deposits in the Bank of Cyprus, above €100,000—they claim they will
fully honor all deposits up to that amount—will be forcibly converted into
common stock in the Bank of Cyprus. In other words, 37.5% of what you thought
you owned, over €100,000: "Congratulations! You now are part owner of a
completely bankrupt, insolvent bank! No choices; it's yours!"
Of the
remainder, there is 22.5% of your deposits that you will never see again, and
you'll not receive any interest on it either. Forty percent you will also never
see—unless, of course, the bank does wonderfully well, which has zero chance of
occurring—but you supposedly will accrue interest on that 40%.
Now, there's
only one problem here, which is that, all of this supposed money, both the
interest accrued and what you're possibly going to get later, is completely
frozen and locked up in the Cypriot banking system! You can't get it. You can
only get €300 a day—which may sound like a lot, if the economy were simply
people going out to buy lunch or something like that, or going to the gas
station. But businesses cannot function under that regime. In fact, what is
going on right now in Cyprus, since banks do not cash checks, they will not take
credit cards, everything is frozen to steal the money to bail out the
trans-Atlantic banking system, there's no longer a monetary system of any
significance whatsoever in Cyprus.
Restaurants
are functioning on a cash basis. They have to pay their providers on a cash
basis. Checks don't work, credit cards don't work, ATMs don't work—your money is
worthless. It was worthless before, in point of fact, but now it is
completely unavailable. And the economy is beginning to grind to a halt. How
many days or weeks this will last is anybody's guess, but you already have
shortages of everything. The ports in Cyprus are not functioning. The
restaurants are closing down. Businesses are closing down. People are not able
to eat—the food lines are growing in many of the cities in Cyprus. And there is
growing panic in the population, a cross between panic and resignation and
despair.
A Europeanwide
Policy
That's just
Cyprus. But the exact same thing, the exact same policy, this "Cyprus template"
which we have been discussing, is in fact, already underway, actively, in Spain
as well. In that case, depositors in Spanish banks were swindled into buying
preferred stocks in those same banks, which now have gone bankrupt, like the
famous case of Bankia bank. So you are now the proud owner of worthless bank
stock, just like in Cyprus, where it was done involuntarily; except in Spain,
they swindled you into doing it. And you now own stock, which is worth .1% of
what it was worth two weeks ago.
Parenthetically, that is
exactly what was done in the United States, by First National City Bank, in the
early 1930s. And it was the subject, among other things, of the famous Pecora
Commission under Franklin Delano Roosevelt, which at the time led to the 1933
Glass-Steagall law. And it has to lead to that again today. It's the same
crimes; it's the same cast of characters; it's the same requirement; and this
time, it has to end, as it did under Roosevelt, with a return to Glass-Steagall
(see p. 30).
But it's not
just Cyprus and Spain. This is the active policy, for example,
throughout the whole European Union. It was stated by Joeren Dijsselbloem, who
is the new president of the Eurogroup, on March 25, where he said, "Cyprus is
the template." Four days later, on March 29, just to make it clear that this was
no false statement by Dijsselbloem—he may have been a little excessively frank
about what the policy was, but this is the policy—a member of the
governing council of the European Central Bank, Klaas Knot, said this approach
of swiping deposits "will be part of the European liquidation
policy."
On the same
day, a Swiss member of the European Parliament, Gunnar Hokmark, said, "You need
to be able to do the bail-in as well with deposits." And he announced that there
is specific legislation to this effect, that has been prepared and presented to
the European Parliament.
Perhaps most
explicit of all, on March 26, was the statement, at a press conference given by
Chantal Hughes, the spokeswoman of Michel Barnier, who is the European
Commissioner in charge of financial robbery—excuse me, of financial regulation.
What she said was: "At no point is it possible to bail in depositors under
€100,000"—Oh, heavens no—except that it just happened in Cyprus, but it won't
happen anywhere else—"either now or in the future. But in the Commission's
proposal, which is under discussion, it is not excluded that deposits over
EU100,000 could be instruments eligible for bail-in. It is a
possibility."
There are
also reports that we have from Canada, of the Economic Action Plan of 2013,
laying out the same policy, which is to swipe people's deposits to try to bail
out the bankrupt banks. And so on and so forth.
So let's take
a step back, and look at the entire world. What you're talking about is an
interconnected chain, a financial chain, which has two weak links. The first
weak link, as we're seeing clearly, is the case of Cyprus.
The second
"weak link" of the chain is the entire trans-Atlantic financial system.
The entire chain, in fact, is gone. And don't assume for a second, that somehow
South America, or Africa, or even Asia, will fare well under these
circumstances. The entire thing is coming down.
Now, since
we've taken a step back to get a global view geographically, let's do so
conceptually as well.
British Imperial
Intention Is Genocide
Lyndon
LaRouche foresaw that exactly this was the British plan. That, as they have
stated, they can no longer run another bailout, like they did in 2008, by
fleecing taxpayers directly; they have to go about it by fleecing the taxpayers
indirectly, by stealing "unsecured creditor" accounts, meaning
depositors. LaRouche foresaw this, knowing none of the details that
I've presented so far, and none of those that I will present momentarily, as
well.
Because what
LaRouche recognized was the actual intention of where the British
Empire was heading, which he presented in a Feb. 15, 2013 webcast, pointing to
exactly this development. He said:
"The vast
mass of debt, which is represented by the monetarist operation, would be
cancelled. In its place, they would have a new system of finances, which ignores
entirely all the obligations associated with the old! Which would mean that most
of the people of the world would be starving to death, quickly.... I know
exactly what they're doing, because I know how systems work.
"This is the
greatest population-reduction scheme so far in known history. And that's what
the policy of the people who oppose Glass-Steagall is—whether they
themselves know it or not. But they will be held accountable for the effect
of that policy."
In other
words, what LaRouche was operating on—and what you need to operate on,
if you want to understand the nature of the enemy, and where the world is going,
instead of relying on gossip and media accounts to determine how to act—is: You
have to know the intention. And often the intention is unknown to the
actors in the drama itself.
The universe
as a whole, physically as well as in history and economy, is guided by
intention, by an overriding causal direction of where things are heading. In the
case of the economy, to survive and implement their depopulation policy, the
British Empire had to do what they're now doing, which is what LaRouche knew and
said they would do. So the question of intention, not the simple
"facts" and "evidence" and sense-certainty which are presented to us on a daily
basis, is actually the governing causality. It is this standpoint of LaRouche's,
and only this standpoint, which can allow accurate forecasting, such as LaRouche
has engaged in repeatedly.
Bailing Out the
Cancer
Now we have
further documentation in hand. For example, we have revisited an earlier
document, published on Dec. 10, 2012, jointly written by the Bank of England and
the Federal Deposit Insurance Corporation of the United States. It is a document
which has a very unlikely title: "Resolving Globally Active, Systemically
Important Financial Institutions," which, for the cognoscenti, are known as
"G-SIFIs." For the purposes of our discussion today, there are four points from
this document that are worth underlining, all hung together under the guiding
line that we have to bail out the speculative cancer, come what may.
First, they
say that what they call "unsecured creditors" are fair game. Now, "unsecured
creditors" can mean various things. It can mean, in fact, depositors above a
certain amount that is supposedly guaranteed, either by the FDIC in the United
States, or guaranteed by the EU in Europe. Now, that latter guarantee has just
been ripped up into little pieces of confetti in the case of Cyprus, so I
wouldn't rely on that particularly. But the argument about "unsecured creditors"
is that, what will now be allowed is to simply lift, steal, rob, seize, the
unsecured creditors, i.e. deposits in these financial institutions, for the
purpose of bailing them out.
This is
completely unheard of. Let's be clear: Under current standing regulations and
practice, which are now being destroyed, what supposedly happens is that the
FDIC-insured amount in the United States is protected, in the case of a bank
going bankrupt and being rolled up, going out of business. The FDIC takes care
of you to that level. If you have more than that: "Sorry sir, sorry ma'am, you
just lost it."
However,
what's being proposed now, is that you're going to lose your deposits, not to
put the bank out of business, but to keep the bank in business, to keep
the cancer operational! It's absolutely scandalous! And the size of the cancer,
the size of the bubble that they plan to keep intact with your money, if you
have any, is enormous. You're talking about quadrillions of dollars! And that's
why it's both your life and your money that they're talking about
seizing.
And they're
not just intent on doing it; they are doing it. It's happening now.
It's happening in Cyprus; it's happening in Spain; it's happening across the EU;
and it's about to happen in Canada, the U.K., and the United States. Like they
say, "It's coming to a bank near you"!
So that's
point number one of the BOE-FDIC document: they intend to take the "unsecured
creditors" to the cleaners.
Number two:
they are talking about using this process to transform the cancer, the
speculative bubble, into a leaner, meaner banking system, which is exactly what
LaRouche was describing. To this end, they are using the arguments of the idea
of "Too Big To Fail," of ring-fencing, and of the Dodd-Frank bill.
The Fraud of 'Too
Big To Fail'
Take Too Big
To Fail, or TBTF as it is called: First of all, the whole idea is nonsense. What
do you mean, "too big to fail?" They have failed! They're gone! To
argue that the problem is TBTF, is to argue that the problem will be solved by
splitting the banks up. It's like saying: Well, let's take this metastasized
cancer, and divide it up into different portions, and place the different
cancerous portions all over the body. That's the "Too Big to Fail"
argument.
Furthermore,
the problem is not the size of banks or bank lending. The problem is
the function; and if the function is to feed the cancer, it's all got
to go. And if the function is not to feed the cancer, as under
Glass-Steagall, we salvage it. But what's happening with TBTF is that this is
now the basis—and it is explicitly stated in the BOE-FDIC document—to push
through their fascist banking reorganization.
The same
thing with ring-fencing, and they're quite explicit about that too: "The
resulting new private sector operations would be smaller, more manageable—and
perhaps more profitable.... Ring-fencing of a banking group's retail banking
activities from the group's investment banking activities would prove
particularly valuable in facilitating such a restructuring."
So, it's not
simply that TBTF, ring-fencing, the Liikanen proposal, electrified ring-fencing,
Dodd-Frank, and all of these things are merely distractions from
Glass-Steagall. They are actually part of the enemy's genocidal plan, and
anybody who is using that as an excuse to not back Glass-Steagall, as LaRouche
said, is committing acts tantamount to treason. Because the effect of this—as is
clear, from this document, and as LaRouche foresaw—is that the world's
population is going to lose not just their money, but their lives. This is a
case of your money and your life.
The third
point of the BOE-FDIC document, is that they announce that the joint
coordination between the United Kingdom and the United States will best go ahead
only after the point that the British banking system is reorganized under a new
regulatory authority, which will incorporate all of the non-deposit-taking
financial institutions. That means the Goldman Sachses of the financial
universe: the investment banks, the insurers, everybody involved in the
derivatives bubble. In other words, prior to including these institutions under
the regulatory scheme, the British side of the operation was not in place and
assured, from their standpoint. But, they inform the reader, they will be
shortly. When? Today, April 1, 2013. And this is no April Fool's joke.
The British side is now operational to be able to do this. All systems are go,
and this is what they're planning to proceed with.
The fourth
and final point, is that they announce that they will have, by the end of this
year, a detailed plan—bank by bank—of the G-SIFIs, which are the banks that
they're going to save, and let the other ones go to hell. But the G-SIFIs will
be bailed out, and they will have them identified, bank by bank, with the exact
mechanism for each case, by the end of this year.
No Alternative to
Glass-Steagall
All of this
was knowable, and in fact it was all known, without knowing any of the details
or any of the predicates, some of which I've presented to you today. If you
think like LaRouche; if you understand what the actual causal relationships are
in the physical universe and in the political universe, and are not distracted
by sense perception and the nonsense idea that somehow truth is based on that
which you perceive, you will recognize that truth is not based on what you
perceive—such things are knowable. Truth is based on understanding the
underlying universal physical principles that are operating—often, with the
absolute ignorance of the participants themselves.
But the
problem here, with the Senate of the United States and with the Congress of the
United States, is not principally ignorance. Not that they're not ignorant; they
are. But the problem is cowardice. The problem is refusing to see what's
directly in front of their eyes, because they don't like the implications of
acting on that. So we have this national problem of a cowardly, and therefore
willfully blind, group of elected officials—Senators and Congressmen, and so
forth—whom LaRouche has made it very clear will be held accountable and must be
pressured into adopting Glass-Steagall immediately, because there is no other
alternative than that to this type of worldwide thievery and robbery and global
genocide.
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