The crisis in Greece and Spain has now reached such a breaking point, as of Friday afternoon, that the existence of "Plan B" can no longer be kept a secret. On Sunday, Richard Ward, the CEO of Lloyds of London, admitted, in an interview with the Sunday Telegraph, that the insurance underwriter has devised plans for the breakup of the EMU. "We've got multi-currency functionality and we would switch to multi- currency settlements if the Greeks abandoned the euro and started using the drachma again," he acknowledged. The Franco-German firm Euler Hermes, which provides credit insurance for euro-denominated business, is considering cancelling future credit default swap contracts for Greek debt denominated in euros—also in anticipation of a Greek departure and possible breakup of the EMU. And the head of the Swiss National Bank, Thomas Jordan, has also acknowledged that his government is working up contingency plans for the breakup of the euro.
This is but the tip of the iceberg. There is no doubt that emergency meetings are taking place over this holiday weekend all over Europe and the United States, as the fate of the entire trans-Atlantic financial system hangs in the balance over the next hours. But, as Lyndon LaRouche emphasized Saturday, there is no alternative for Europe or the United States to an immediate return to Glass-Steagall. For Europe, this means the cold turkey cancellation of both the Maastricht and Lisbon treaties and a return to regulated, sovereign currencies, as existed under the European Rate Mechanism (ERM). By imposing Glass-Steagall separation, wiping out the gambling debts, and walking back from Maastricht and Lisbon, Europe—like the United States—can launch a recovery program, based on a credit system and great projects.
Further highlighting the immediacy of the trans-Atlantic disintegration, over the weekend, the governor of the autonomous Catalan region of Spain, one of the wealthiest parts of the country, announced that they would run out of money at the end of the month. The former prime minister of Greece, Papademos, warned that Greece runs out of cash at the end of June—unless the EFSF and IMF bailout funds come through. And the head of the now-nationalized Bankia in Spain gave a series of interviews at the end of the week, insisting that Bankia would not need anymore bailout money—beyond the 23.5 billion euro price already on the backs of Spanish taxpayers. Bankia officials were racing to announce a plan to sell off mortgage and corporate assets to halt the panic, before banks and markets reopen in Europe on Tuesday.
As we know, the disintegration now of the trans-Atlantic financial and monetary system is totally tied up with the issue of strategic war and peace. In the past 48 hours, there has been a major escalation in the Syria crisis, with allegations of a massacre in the town of Houla near Homs triggering a heavy British push for outside intervention. Russia convened an emergency meeting of the United Nations Security Council on Sunday afternoon. The Syrian government not only declared they had nothing to do with the confirmed deaths in Houla, but that they would conduct an independent investigation and share the results immediately with the UN monitoring team. Whatever happened inside the UN Security Council chambers, when General Mood delivered his preliminary report, pandemonium erupted when British, German, and French UN ambassadors flagrantly lied to reporters immediately afterwards, claiming that evidence confirmed that the Syrian government had carried out the massacre, when no such evidence had been presented, and the letter by the Security Council was endorsed by the Syrian ambassador. The Syrian ambassador delivered a detailed account of a nine-hour battle launched by armed insurgents that spread killings to three villages in the area, and announced that the Syrian inquiry would be completed and made public in three days.
Lyndon LaRouche emphasized that the Syria situation is actually targeted at Russia. The British remain desperate to get the Russians to blink, whereas the Putin government shows not the least inclination to do that. In fact, Putin, Medvedev, Makarov, and others are baiting London and Obama by using every opportunity to flaunt their arsenal of thermonuclear weapons as a reminder that, under present circumstances, general war is tantamount to extinction.
As Mr. LaRouche concluded a discussion on Sunday afternoon: Glass- Steagall is now a necessity, because the ability to save the U.S. system depends on Glass-Steagall. We've got to dump all government accountability for covering gambling debts. This is the only option to save the United States! And if the United States is not saved, there is no possibility that the rest of the world, starting with Europe, can survive. An immediate action to get the Glass-Steagall process in place in the United States is now crucial. It is the first step towards freezing the onrushing global financial disintegration that is already racing ahead of all of the hyperinflationary bailout efforts to halt the crash.
This is the singular, urgent priority for our efforts going into Monday.