+++ 6. Oktober 2016 +++
Japanese Economist: Deutsche Bank Must Be Nationalized and Put Through Glass-Steagall Reorganization
For weeks now, the financial press has been rife with rumors of the imminent demise of Deutsche Bank, and investors have begun short-selling. While the reasons for Deutsche Bank's collapse are partially internally, in particular a high exposure to inflated, speculative assets, combined with the ECB zero-interest policy, it is really only the most visible aspect of the crumbling of the global financial system.
But now, an operation seems to be underway to make Deutsche Bank an easy prey for vulture funds, in order to loot its deposit and wealth-management division. Whereas the right solution is the one indicated by Lyndon LaRouche and backed by Japanese economist Daisuke Kotegawa, it is likely that the German government, in cahoots with the ECB, is ready to implement a "market solution" for DB, similar to the one implemented for the Italian MPS: sell the bank to a private international consortium in a highly leveraged, securitized scheme.
Last July, Helga Zepp LaRouche put forth a proposal for a government intervention to keep Deutsche Bank afloat as a necessary institution for the German economy, but only provided that the bank return to the competent banking policies of former Deutsche Bank CEO Alfred Herrhausen, who was assassinated in 1989.
A similar approach was supported by the former Executive Director of Japan to the IMF Daisuke Kotegawa, and currently Research Director at the Canon Institute, who oversaw the resolution of the banking crisis in Japan in the late 1990s. In late September, he presented a plan to EIR on how to deal with the DB crisis.
First, there is no option other than nationalization. Neither bailout nor bail-in can overcome the massive derivatives bubble and other liabilities of the bank. To accomplish this, he said, a date must be set upon which all derivatives must be settled. Those that cannot be settled are declared void.
For Kotegawa, a Glass-Steagall-type policy must be imposed on Deutsche Bank, completely separating its commercial banking activities from its investment banking activities.
In preparation for these moves, the entire western banking system must be put on notice that the impact on the counter-parties of the massive derivative holdings of DB which will be declared void – mostly other US and European banks – will be profound, leading to contagion on the markets. Therefore all the major banks, and the governments involved, must prepare to implement similar policies upon those banks which are threatened with failure.
Finally, those responsible for the destruction of DB must go to jail for their crimes. This is necessary, among other reasons, to convince the population that the policy is serious. Kotegawa also stressed that the implementation of Glass- Steagall by all the governments involved, before the crisis explodes, would dramatically lessen the danger of a panic and contagion.
~ deutsch + english ~
+++ 21. Dezember 2016 +++
Terror: Obama Issues Threats to Kill
On receiving the first reports, on Dec. 19, of the assassination of Russian ambassador Andrey Karlov in Turkey, American economist Lyndon LaRouche declared: “Put Obama on the list of suspects.”