Galloni Interviewed by Grillo Official on Glass-Steagall
May 2, 2013 • 9:20AM
Economist Nino Galloni was interviewed by Claudio Messora, communications head of the Grillo group in the Senate, in a long video which was posted on April 30 on Messora's webpage and in which Galloni calls for Glass-Steagall as the first step for a recovery program. The video had been visited over 9,000 times after 24 hours.
The interview was taped several weeks ago, but has been kept on ice so as not to influence the faction fight during the decisive post-election period, according to observers.
In the interview, Galloni reconstructed the strategy of deindustrializing Italy, starting with the assassination of Aldo Moro in 1978, continuing through the 1989 geopolitical shifts in Europe and the post-1992 "Britannia coup." Nino is a privileged source, because his father was a close collaborator of Aldo Moro, and he, himself, was in the center of events in 1989 as director general of the Budget Ministry under Giulio Andreotti.
In 1989, Galloni explained, Germany was forced to abandon the d-mark as a condition for reunification, and Italy was put on a deindustrialization course as part of the same deal. "Then, at the end of the '90s, the universal bank is introduced — that is, the possibility for the bank to neglect credit for the economy and instead, to make more financial and speculative trades, which will produce only disasters, as we know...."
Messora: "The end of the Glass-Steagall Act?"
Galloni: "Yes, exactly...."
Messora then asked what Britain's role was. Galloni replied, "Britain did not have a direct interest in weakening Italy in the Mediterranean, but it does have a comprehensive strategy in Africa and the Middle East, which has always aimed at increasing conflicts and unrest, and the faction led by the Crown, which is expressed also in some environmentalist movements, aims at a drastic population reduction on the planet; therefore, it is against any policy which favors development as we know it."
Concerning the United States, "after Kennedy, the U.S.A. has increasingly become the prey of the British. That is a fundamental issue to be solved. However, the U.S.A. has dramatically sought, in some regional situations as [in] the Mediterranean, adequate partners. Italy was not able to play this card after the fall of the Berlin Wall."
Galloni then describes how the derivatives bubble was built in order to save the financial system, which, in 2001, was already bankrupt, and finally blew out in 2007. At that point the Fed intervened with bailouts, injecting directly or indirectly $17 trillion in the system. The ECB, after an initial resistance, started to do the same. Today, we have EU3-4 quadrillion of toxic debt in the world.
The solution is "an agreement among states: China, India, U.S.A., possibly Europe and someone else, to freeze this mass, turning it into monetary means for development. At that point, the question is the capacity to plan infrastructure, flights to Mars, catching asteroids in order to mine them, and more. If there are those with designs for productive, industrial capacity, for the unemployed workforce, we can come out of it. Otherwise, the theory tells us that there could be a great hyperinflationary explosion that will cancel all debts."
After blasting the current EU policy, Galloni then calls "for a new policy that reintroduces Glass-Steagall, establishing monetary sovereignty — either at [the] EU level or through a dual currency system."
"The economy must be rebuilt, in the sense of real economy. The real economy must have a financial policy that helps it. Then, if there is another financial policy that is going to create disasters elsewhere, it won't affect the real economy and citizens' lives. This is the first step, corresponding to the reintroduction of the Glass-Steagall Act. For this, dual and triple currency circulations can be useful — complementary currencies but also the reintroduction of national currencies, parallel to an international currency....
"Thus, if I must repeat my fundamental, immediate steps: a law reestablishing the strict separation between entities carrying out financial speculation from entities giving credit to the economy. Because credit comes first of all, the largest component of currency, 94% of currency is credit. Then comes the issue of monetary sovereignty, as I said before. Either the state or the European Union must have deficit spending in order to have a recovery." Third step is a different management of public debt, fourth is to stop the EU supranational police project (Eurogendorf), fifth is "the acquisition of all the great technologies that are available to humanity in order to improve living standards for everyone."
Nino Galloni was a speaker at the April 13-14 Schiller Institute conference in Frankfurt.
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