More criminal banking activity has been exposed by another release of secret banking documents; once again, it centered in the City of London and London’s offshore bank centers — to use their Commonwealth spelling. This time, investigative journalists got hold of 2,500 pages of suspicious activity reports (SARs) filed by banks, about banks, to the U.S. Financial Crimes Enforcement Network (FinCEN) between 2000 and 2017.
They showed money being laundered for drug-trafficking purposes, terrorist-financing purposes, arms-trafficking, and plain old money laundering purposes to avoid regulations, taxes, etc. by thousands and thousands of dummy corporations. And what were the banks where most of this illegal laundering was going on? Number one was Deutsche Bank, a bank with a German name but whose operational center has been London for decades — $1.3 trillion in suspicious transactions through that bank alone; then, JPMorgan Chase’s London headquarters; Europe’s biggest (London) giant, HSBC; and Standard Chartered bank. And where are most of the dummy corporations headquartered which are revealed in the suspicious activity reports? In the U.K., some 3,000 of them, with more in its offshore centers.
https://www.bbc.com/news/uk-54226107;
Lyndon LaRouche demanded for half a century that London’s dominant financial power be shut down, and the British intelligence schemes against national governments and their leaders ended. He proposed to do it by creating a summit process among the nations of America, China and Russia in particular, with India and perhaps Germany and Japan also playing a part, to bring back to life President Franklin Roosevelt’s post-war vision of a New Bretton Woods credit and monetary system. This is the explicit aim of the series of extraordinary conferences which have been held by the Schiller Institute and LaRouche Political Action Committee throughout this year, recently with dozens of leading speakers and the participation of thousands around the world.
Is more evidence needed that this must be done now? Figures from the Bank for International Settlements (BIS) show the ratio of debt to GDP, or debt leverage, was rising in the world economy already early in 2020 at the fastest rate BIS has ever recorded, as was reported by Zero Hedge on Sept. 20. The BIS figures and charts refer to debt for non-financial sectors (governments, businesses, household), not including the large operating debts of banks and non-bank financial firms. It surged from 241% of worldwide GDP at the end of 2019, to 252%, increasing by nearly $25 trillion in absolute terms. And that was in the first quarter of 2020, before the large money-printing and “relief” legislation in major nations as their economies plunged in the second quarter. Since the U.S. and all the major European economies were losing 10% of their economic activity at the same time, there was probably a huge spike in debt leverage in the latter period. https://www.zerohedge.com/markets/global-debt-exploding-shocking-rate
But this process actually began 50 years ago when the City of London banks — again — were able to bring down FDR’s Bretton Woods monetary system by forcing the dollar off its gold reserve (Nixon’s fatal action of Aug. 15, 1971). The last half-century of floating exchange rates, more and more wild financialization and speculation in everything, and the loss of productive industry, all stem from that disastrous change scored by London’s financial centers.
In fact in the U.S. economy, even including debt of financial companies, “The debt-to-GDP ratio in 1969 stood at 1.47X, which had been roughly centered in that area for a century since 1870—an interval that saw the greatest explosion of economic growth, mass prosperity, technological progress, and accumulated wealth in human history,” wrote former Reagan official David Stockman in a recent article. But, he added, “Today the total debt-to-national income ratio stands at 3.47X.”
Without a multinational Glass-Steagall reorganization of banks to allow masses of this debt to be written off and replaced by productive credit under a new Bretton Woods credit system, the chances to resolve this debt mass are two. Either there are massive defaults in a crushing implosion of corporate debt in particular, and more mass unemployment; or the central banks succeed in their current effort to create very high rates of inflation in a furious attempt to inflate this debt away, Weimar style.
The U.S. Congress are not the ones for President Trump to negotiate this with. Rather it is his fellow leaders of the other major economic powers with whom he can make this change,
put forward for such long decades by Lyndon LaRouche.
