In These New Times

November 6, 2008 (LPAC)–The continuing attempt to impose a monetary solution to the bankruptcy of the financial system is not just corrupt and incompetent, but it is also killing what remains of the global economy. Trillions of dollars have been pumped into the banks in the U.S. and Europe, but these banks are nevertheless restricting the issuance of credit to crucial areas of the economy. Of particular importance is the banks’ shutting off of letters of credit and credit lines to the shippers who move raw materials and more finished goods around the world. The banks are thus shutting down world trade in a foolish–and suicidal–effort to save themselves.

The reason the banks are not lending is fairly simple: they are hopelessly bankrupt, sitting on losses far beyond anything they have admitted, far beyond what many bankers can imagine–they are in survival mode, desperate to take in all the money they can, while giving out as little as possible. We are talking here primarily of big international banks, whose speculative activities in the securities and derivatives markets have give them losses multiple orders of magnitude greater than their capital bases, banks which are integral parts of the Anglo-Dutch Liberal financial system. The financiers, determined to save themselves no matter what happens to the rest of humanity, are willing to sacrifice the services and infrastructure upon which human life itself depends, an approach which is both genocidal and suicidal. Such a policy cannot be tolerated by any society which wishes to survive.

The only way to save humanity from a plunge into a new dark age worse than that of the 14th Century is to put the Anglo-Dutch Liberal monetary system through bankruptcy proceedings, canceling all derivatives obligations, freezing the mountains of unpayable debt to be dealt with at our convenience, and providing a flow of U.S. Federal credit to fund the development projects and other programs necessary to protect the people and restart real economic activity.

The bankers who are restricting world trade are clearly insane, and if we tolerate their actions, so are we. Still, even at this late date, we can turn the situation around and launch the world on the path toward a new Renaissance. We know what the oligarchs will do, but the choice is really up to us.