"If the Irish government does what it says it intends to do, which is its legitimate right, which is to deny their obligations to meet the debt of foreign banking institutions operating on Irish soil, run by the British Empire's Inter-Alpha Group, that means the toppling of the entire damned system," Lyndon LaRouche stated yesterday.
In the countdown to the upcoming March 24-25 EU summit, which is intended to formalize London's insane hyperinflationary bailout package for their banks operating in various EU countries —such as Ireland, Greece, Portugal and Spain—the new Irish government of Enda Kenny has made it clear that it will meet the government's sovereign obligations, but that it cannot pay the debts incurred by foreign banks operating in Ireland.
"We have to make that rude distinction," LaRouche insisted today. "These are non-Irish banks. This is not an Irish debt. It is the debt of foreign banks which have been operating in Ireland. Ireland is going to default on obligations to pay the non-Irish debt, which is the debt of the Inter-Alpha Group. These debts that are being demanded be paid by the Irish government, are not debts of the Irish government. They are debts of a foreign private banking system—the British banking system. They are not debts of the Irish, and that's what has to be said.
"The claims of the Inter-Alpha Group are implicitly fraudulent. The debts were not incurred by the Irish nation, the Irish government. They were incurred by foreigners, whose loyalties are not to the Irish nation. Their accountability is not to the Irish nation—quite the contrary. They are saying the Irish nation is accountable for the debts of foreigners. The Irish nation is not accountable for debts of foreigners.
"Now the significance of that is: If the Irish stick to the truth, which is their right, if they exert their rights, saying that the debts of foreign banks are not the debts of the Irish government, then what happens to Portugal, to Spain, and what is the consequence beyond that, to the existing condition in Greece, and to the potential explosion in Italy?
"This issue is the equivalent of Glass-Steagall, but it does not depend on the U.S. Glass-Steagall law. It depends on the right of Ireland to distinguish between what is the debt of its government, incurred by its government, and the debt of a foreign bank operating in Ireland. That's the difference.
"What this means is, that if the Irish uphold the principal of national sovereignty, then what if Portugal and Spain do the same? Now admittedly, Portugal and Spain are more vulnerable politically, in the sense that they are more sloppy on this than the Irish have been. But nonetheless, if they are pushed to the wall, then Portugal and Spain will have to follow the Irish example, and say that the Spanish government is responsible for the debt of the Spanish government—that is, the debts incurred by the Spanish government, voluntarily. Any debt which is not voluntarily incurred by a government, as a government debt, is called into question, as a matter of principal.
"That means if Portugal and Spain assert that they are nation-states, and that they are not merely subject to some supra-national rule, then you have a collision between the existence of the nation-state and the supra-national entity, which is the bank of the Euro system.
"And what's Greece going to do, if Spain and Portugal do that? Because, first of all, Greece will not be isolated, because other nations are doing it, and Italy is about to go in the bucket. Now, if Greece, Italy, Spain, and Portugal go out of the system, what happens to the euro system?
"Bye-bye, Inter-Alpha Group. Bye-bye, BRIC, which is the bad bank for the Inter-Alpha Group. You've got a chain-reaction collapse of a bankrupt system."