Skip to content
Socio-Economics History Blog

Socio-Economics History Blog

  • About

Socio-Economics History Blog

Socio-Economics History Blog

A Voice of Sanity for Glass-Steagall as ECB Plans Hyper-Hyperinflation!

July 3, 2012 by mosesman

[youtube=http://www.youtube.com/watch?v=N_XtXhiekQk]

  • The Glass Steagall Act was instituted after the first Great Depression to separate banks into 2 categories: those doing traditional savings and loans commercial biz (ie. normal banking) and those in the investment banking biz (ie. highly speculative investments). It prevented depositor funds from being diverted into highly speculative investment, casino gambling. Investment banks were dis-allowed from obtaining deposits from savers. The cause of the bank runs and first Great Depression can be traced back to banks which were gambling with depositors money, same as what is happening now!
    –
  • The criminal politician snakes have done away with Glass-Steagall and depositors are now liable for the gambling debts of these Illuminist banks! See: Bank Of America Forces Depositors To Backstop Its $53 Trillion Derivative Book To Prevent A Few Clients From Departing The Bank ! (emphasis mine)
    –
    A Voice of Sanity for Glass-Steagall as ECB Plans Hyper-Hyperinflation! 
    by http://larouchepac.com/
    In the aftermath of the Thursday-Friday Brussels meeting of the European heads of state, which Helga Zepp-LaRouche has appropriately labeled as a second Versailles Treaty looting of Germany, Bloomberg reported yesterday that all attention is now focused on the July 5 meeting of European Central Bank, where it is hoped that the next step towards hyper-hyperinflation will be taken by Mario Draghi and company.  At that meeting, according to Bloomberg, it is anticipated that the ECB will lower benchmark interest rates by at least 25 basis points to a record low of 0.75 percent and, at the same time, lower deposit interest rates to zero, to discourage banks from parking funds at the ECB.  The big question is whether the ESM, due to be activated sometime this month, will be chartered as a bank, allowing it to enjoy unlimited borrowing from the ECB’s discount windows.  This is the key move to secure what Lyndon LaRouche Sunday described as hyper-hyperinflation—-a flood of money to bail out the banks that exceeds, by orders of magnitude, the anticipated size of the ESM.  For example, Bloomberg reported that the ESM bailout fund is expected to have an initial capitalization of 500 billion euros at most, where Italy and Spain alone are holding 2.4 trillion euros in outstanding bonds, bills, and loan obligations.
    –
    Bloomberg quotes Holger Schmiedling, chief economist at Berenberg Bank, calling for a third round of long-term loans to the banks and a resumption of ECB purchasing of sovereign bonds. “If the summit result encourages the ECB to step in with serious support for sovereign bond markets, it could be a smashing success.  If the ECB hold back instead, the crisis could possibly escalate badly over the summer until the ECB finally relents.”
    –
    Amidst all of this hype and hyperinflation, at least one media voice expressed some degree of sanity.  Writing in Sunday’s Telegraph, Liam Halligan once again called for Glass-Steagall and threw cold water on the euphoria over Merkel’s capitulation.
    –
    Warning that there are critical interim hurdles before the fullscale bailout scheme can be realized, Halligan wrote:  “It is abundantly clear, though, to any objective observer, that there is a very long way to go befgore any kind of resolution. Strict conditions still apply to the use of eurozone rescue finance.  The exasperated German parliament retains a veto over the deployment of such funds.  And the entire notion of direct funding to member states’ banks, as opposed to respective sovereigns, still needs to be cleared by Germany’s constitutional court.  As such, we could yet see this famously nit-picking and powerful judicial body only granting approval following a referendum—which would be the first in Germany’s post-war history… And acccording to the Brussels summit communique, the bail-out can, anyway, only happen once a eurozone-wide bank regulator has been ‘established.’ ”
    –
    Halligan concluded his dissection of the Brussels fiasco with this assessment:  “The circle will only be broken, of course, once politically-connected banks are busted up and their creditors forced to take losses.  This has yet to happen in Western Europe—and, until it does, we’ll keep lurching from crisis to crisis.”
    –
    Halligan then went on to highlight the fact that there is a major criminal investigation—of Watergate proportions—now underway in the City of London over accusations that British banks were manipulating the LIBOR rates, on which global interest rates are set.  The author concluded that, as bad as the banking crisis is on the continent, the crisis in the UK is far worse. He dismissed the idea of “ring fencing” as folly.  “Well, history shows that firewalls don’t work, which is why we desperately need a proper ‘Glass-Steagall’ split.  Unless we get one, then the ongoing use of ordinary deposits to finance investment bankers’ bets will result in yet more UK bank bail-outs.  Given the rescues we’ve seen so far, and the gargantuan size of our bloated banking sector, this is something the UK simply can’t afford.”

end

Post navigation

Previous Post:

After Meetings in Russia and Geneva on Syria: Hillary Clinton Warns of Regional War Danger!

Next Post:

LaRouchePAC: Eurozone Banking Fascism, ESM Dictatorship And The Decision for Hyper-Inflation! Imminent Collapse of The Banking System!

Pages

  • About

Recent Posts

  • WARNING! They’re USHERING In The Collapse of the US DOLLAR | Greg Mannarino
  • Meet your new World Government: The World Health Organization Pandemic Treaty | Redacted News
  • Oh No! NATO Meddling in Serbia Once Again! | Redacted with Clayton Morris
  • U.S.-Led NATO Troops Chased, Beaten With Sticks by Serbs in Kosovo | Dramatic Footage Goes Viral
  • The ECB WARNS: “Top Banks May Take A Hit.” Consumer CONfidence Is Higher? Really? Mannarino
  • False Flag Alert! Media & Homeland Security Warn ‘Right-Wing Extremists’ Or Russia Set To Attack Power Grid
  • Neo-Nazis attack Russia With US Weapons
  • Dr. Mike Yeadon, Former Vice President at Pfizer: “When I Looked at the Design of These So Called vWacxines, I Found [That] They Were Designed to Injure, to Maim And to Kill.”
  • U.S. Has Been Planning Ukraine’s Counteroffensive ‘For Months,’ Victoria Nuland Says
  • Major Drone Attack On Moscow Damages Several Apartment Buildings
  • Dr. Rima Laibow: The Nefarious Plans of The World Health Organization | The Hagmann Report May 26, 2023
  • World Health Organisation ‘Desperate’ to Have Global Pandemic Treaty
  • Cox-vid-1×9 vWacx-ination Can Induce Multiple Sclerosis
  • A Sovereign Debt Collapse Would Be Catastrophic for the Bankers.
  • Over 300 COVID-19 Papers Withdrawn for Not Meeting Standards of Scientific Soundness
  • Jeffrey Sachs: The Consequences of Mishandling the Ukraine Crisis
  • Prepare For A Worst Case Scenario, Because There Is No Way Out Of It Now. Mannarino
  • 15 Big Restaurant Chains That Are Falling Apart In 2023
  • Worst Crash Of Our Lifetime Ahead? “Great Depression Meets Weimar Germany” Warns John Rubino
  • China Declines US Request for Defence Chiefs to Meet at Shangri-La Dialogue

Archives

  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011

Categories

  • Disaster
  • Economics
  • Endtimes
  • Geo-Politics
  • History
  • Medicine & Health
  • Satire
  • Science & Technology
  • Social Trends
  • Uncategorized

Meta

  • Log in
  • Entries RSS
  • Comments RSS
  • WordPress.org
July 2012
M T W T F S S
« Jun   Aug »
 1
2345678
9101112131415
16171819202122
23242526272829
3031  
© 2023 Socio-Economics History Blog | WordPress Theme by Superbthemes